THE BATTLE FOR STABLECOIN L1 AMIDST THE FED’S RATE CUT: XBIT WALLET HELPS YOU DECIDE WHICH STABLECOIN WALLET PLATFORM IS BEST

Cre: Twitter: XBITDEX

XBIT Wallet reported on September 22nd that last week the Federal Reserve announced a 25 basis point reduction in the target range for the federal funds rate from 4.25% to 4.50% to 4.00% to 4.25%. This marked the first rate cut by the Fed until 2025 and the fourth in this easing cycle, bringing the total rate cut to 125 basis points. The rate cut shifted market capital flows, and users were focused on which stablecoin wallet platform was best. XBIT Wallet’s decentralized web3 wallet is already compatible with three Layer 1 chains: Circle Arc, Tether Plasma, and Stripe Tempo. Users can conveniently manage mainstream stablecoins like USDC and USDT, seamlessly connect to the XBIT decentralized exchange, and participate in various Layer 1 ecosystem scenarios, precisely meeting the “low risk + high liquidity” needs.

From a market perspective, the high profitability of stablecoins and the monetary policy environment are the core drivers of this competition. Amidst the high interest rates in the United States, Circle generated $658 million in revenue in Q2 2025, with Tether holding a 62.8% share with an outstanding supply of $172 billion. Following the interest rate cut, precautionary rate cuts, leveraging the Capital Asset Pricing Model (a downward discount rate increases the present value of risky assets) and Tobin’s Q (lower financing costs stimulate investment), are driving capital inflows into the stablecoin market. During this process, high-quality wallets must closely follow the ecosystem’s technological advancements. XBIT Wallet, serving as a hub connecting users with the ecosystem, not only synchronizes transaction data from Circle Arc’s foreign exchange engine, Malachite, in real time, allowing users to quickly view USDC/EURC sub-second settlement progress within their wallets, but also optimizes the transfer process for Tether Plasma’s zero-fee feature, allowing retail users to complete transactions without incurring additional gas fees, truly translating the technological advantages of Layer 1 into a user-friendly experience.

Cre: Twitter: XBITDEX

XBIT Wallet reported that, in the diverging fields of technology and positioning, the Layer 1 (L1) features of the three platforms directly determine their wallet compatibility. Circle Arc focuses on institutional foreign exchange trading, with dedicated accounts supporting real-time reconciliation and compliance record export for USDC/EURC swaps up to $10 million. Tether Plasma focuses on retail investors, with a “zero-fee operation zone” within the wallet that automatically matches the optimal path on the Plasma chain. Stripe Tempo’s stablecoin neutrality is transformed into a “multi-currency flexible switching” feature, allowing users to seamlessly convert between USDC, USDT, and other currencies through the wallet’s built-in AMM interface without having to switch to a third-party platform. This adaptation logic perfectly addresses the core demand for a stablecoin wallet platform. Wallets that deeply integrate the features of different Layer 1 ecosystems and meet diverse use cases are considered competitive. Furthermore, while interest rate cuts are beneficial for risky assets, the high leverage ratios of US companies weaken the interest rate recovery effect. The asset risk scanning function provides real-time notifications of risks associated with stablecoin holdings and the Layer 1 ecosystem, providing a crucial safeguard against market fluctuations.

In terms of traditional financial integration, Arc’s T+0 foreign exchange settlement faces regulatory and liquidity challenges. In related areas, stablecoin L1 is challenging giants like Visa, but interoperability remains a challenge, and the market landscape is shifting from a duopoly to an oligopoly. As the core entry point for users into the web3 world, wallets are as important as their security and functionality. Many users ask, “Since digital wallets are so important, how can we ensure their security?” In reality, the core of security protection lies in maintaining control over assets. First and foremost, backing up your mnemonic phrase is crucial. When you create an account, you’ll receive a unique mnemonic phrase, which is the only way to recover your wallet. Once lost, your wallet’s assets may be irrecoverable. Therefore, be sure to handwrite and store it in a safe place. Never store it on a phone, computer, or cloud to prevent information leakage due to device loss or hacker attacks.

Cre: Twitter: XBITDEX

According to data from the XBIT Wallet app, the current outstanding supply of the stablecoin market is concentrated among the top players: Tether leads with $172 billion (62.8%) and Circle with $70.5 billion (25.8%), while challengers like Ethena and Sky hold less than 6%. These data not only confirm the ecological appeal of the three major L1 platforms, but also further clarify the question of which stablecoin wallet platform is best. In addition to ecosystem adaptability, a comprehensive security system is also a key consideration. Multiple measures such as encrypted backup of mnemonics, local storage of private keys, and link security testing can build a strong “protection wall” for user assets. With market valuations at historical highs, interest rate cuts have limited impact on the stock market. The cross-chain asset allocation recommendation function can recommend a combination of stablecoins and L1 ecosystems based on user risk preferences, helping to achieve optimal fund allocation.

Stablecoins, known as L1, have become the core of financial infrastructure reconstruction. XBIT Wallet, a decentralized web3 economic wallet, leverages deep L1 integration, exchange resource integration, and comprehensive security protections to keep pace with the ecosystem competition of Circle, Tether, and Stripe while effectively addressing user pain points in asset management and security. Users can not only manage and secure multi-chain stablecoins, but also participate in incentive programs across the L1 ecosystem through their wallet identity, achieving both utility and equity value. Beyond mnemonics, protecting private keys is also crucial. The private key is the wallet’s “ultimate password,” granting unfettered control over all assets within it. Encrypted storage technology strengthens private key security, but users must also prevent the risk of leakage by not sharing their private keys with anyone and not storing them on social media platforms, email, or in untrusted apps.