Stablecoins have been thrust into the limelight as considered one of crypto’s killer use instances in 2025, sparking rising institutional adoption, however Codex founder Haonan Li vows to take care of Ethereum’s place as the house of stablecoins.
Ethereum at the moment dominates the stablecoin provide race with $153 billion in stablecoin market capitalization, adopted by Tron with $81 billion. Collectively, Ethereum and Tron command greater than 81% of the full stablecoin market, however upcoming rivals akin to Plasma, Steady, Arc, and Tempo wish to problem their dominance.
Specifically, the Ethereum group has been up in arms for the reason that announcement of Tempo, a Layer 1 stablecoin blockchain developed by Stripe and crypto funding fund Paradigm. Some are upset that Paradigm funded the Ethereum-focused institutional arm, Etherealize, after which went on to construct its personal Layer 1 blockchain meant to cater to establishments.
Amid the controversy, Li launched a strongly worded article on X, claiming that each one the brand new stablecoin chains are “makes an attempt to supplant and assault Ethereum”, and mentioned he’s assured Ethereum and Codex will “crush these rivals.”
Li went on to elucidate that Ethereum’s historical past, lack of downtime, and deep liquidity ought to make it Wall Road’s most well-liked blockchain. He additionally mentions how, of their present type, stablecoin flows are bottlenecked by underlying financial institution transactions which are restricted to SWIFT speeds and may take days, whereas Codex goals to scale back the fiat-to-stablecoin swap time to close zero.
Ethereum co-founder Vitalik Buterin shared Li’s article and mentioned he’s “Excited to see [Codex] becoming a member of the sector as an L2 and pondering explicitly about synergy between itself and Ethereum L1 from day one.”
Codex got here out of stealth in April, when it introduced a $16 million funding spherical led by Dragonfly, with participation from different distinguished buyers like Circle and Coinbase.
