While crypto markets await news on Bitcoin ETF approval and the rest of the sector debates its role in digital finance, Ethereum quietly powers another significant trend: the growth of stablecoins. Backed by fiat currencies, these tokens are becoming a cornerstone of a new financial landscape. And at the forefront is Ethereum. The network is poised to become the backbone for this tokenized monetary system. 51% of circulating stablecoins, or $138 billion, currently operate on the Ethereum blockchain. This dominance has been fueled by several factors including accelerated adoption for payments, exchanges, and cross-chain transfers; massive concentration within Ethereum’s ecosystem, both in Layer 1 and via its Layer 2 solutions like Base and Starknet; an ETH burn mechanism that reduces circulating supply and potentially supports prices; and stablecoin market growth outpacing the entire crypto sector. JPMorgan forecasts a stablecoin market of $500 billion by 2028, with Standard Chartered predicting even higher figures of $750 billion. This growth reinforces Ethereum’s position as a central infrastructure for stablecoins. The GENIUS Act in the U.S., which provides legal clarity for stablecoin issuance and circulation, has accelerated this trend. Wall Street institutions are also joining the movement. Circle, issuer of USDC, went public, while Robinhood launched its own Ethereum-based Layer 2 platform. With these innovations from Web2 companies, the Ethereum ecosystem is experiencing significant activity. The rise of stablecoins extends beyond purely crypto projects and is being driven by ambitions from established financial institutions. This shift impacts technical aspects too. While Layer 2 solutions offer cost savings, they also lower ETH burn rates, a factor that needs to be monitored as it relates to ether’s scarcity. While JPMorgan’s cautious estimate of $500 billion for stablecoin market by 2028 remains optimistic compared to Standard Chartered’s projected $750 billion by 2026, the sector’s potential is undeniable. The alliance between stablecoins and Ethereum transcends technical considerations; it signifies a strategic direction for the future of tokenized finance.