USDM Stablecoin Beats USDC in Privacy and Enterprise Features

Key Points

• USDM Stablecoin Beats USDC in Privacy and Enterprise Features
• Built by Moneta, it’s designed for role-based financial operations
• USDC still dominates with $63.68B in market cap and wide adoption
• USDM remains early-stage with only $3.57M in circulation

Cardano founder Charles Hoskinson has just turned the spotlight on USDM, a new stablecoin created by Moneta. Labeling it “the most advanced stablecoin ever built,” he suggests it may even outperform the widely adopted USD Coin (USDC).

Moneta’s USDM is becoming the most advanced stablecoin ever built https://t.co/r32xbbfCbE

— Charles Hoskinson (@IOHK_Charles) July 31, 2025

What makes USDM special?

It’s not just a digital dollar. USDM is designed with enterprise functionality in mind, supporting features like role-based transaction visibility, permissioned access, and privacy-enhanced architecture.

According to Hoskinson, this could make it a serious game-changer in how businesses interact with blockchain-based finance.

Amazing workshop down in Buenos Aires making progress on the first Private Stablecoin pic.twitter.com/0CnSSrxACb

— Charles Hoskinson (@IOHK_Charles) July 30, 2025

After a recent workshop in Buenos Aires, Hoskinson teased an even more ambitious version of USDM that includes full privacy and control layers. He likened the leap from USDM to this future product as moving from “checkers to 4D chess.”

While USDM is solid, what’s cooking in Buenos Aires is next level. Privacy-enabled stablecoins with granular permission controls? That’s not just disrupting TradFi, that’s replacing it entirely. The complexity jump from USDM to this is like going from checkers to 4D chess.

— T (@agentic_t) July 31, 2025

The crypto community responded with excitement, speculating on how such innovations could disrupt traditional finance (TradFi).

Andrew Westberg, CTO of W3i, echoed this sentiment. He explained how current stablecoins like USDC are too public for enterprise use.

In contrast, USDM allows fine-grained access controls, perfect for companies managing sensitive data, like payroll structures that require different levels of visibility based on user roles.

That’s something USDC, which exposes all transactions on-chain, can’t do. In short, USDM isn’t just for payments, it’s built to be a financial tool for real businesses.

Usdc is not capable of any of the above requirements. Everything it does is public.

— Andrew Westberg (@amw7) July 30, 2025

This also comes at a time when the industry is experiencing shifts—such as the rise of Ethereum reserve balances growing by over $10B, and a surge in altcoin-ETH trading pairs, pointing to evolving investor strategies.

USDC Still Rules, But USDM Hints at the Future

While USDM is making waves with its advanced features, it’s still very early in its journey.

USDC remains the dominant player in the stablecoin market, with a massive $63.68 billion market cap and over 63.7 billion tokens in circulation.

It’s used across multiple major networks like Ethereum, Solana, Base, and Hyperliquid. On top of that, Circle, the company behind USDC, recently went public, gaining even more trust from regulators and financial institutions.

This mirrors similar momentum seen in projects like Kraken’s upcoming $15B IPO, further proving how crypto firms are now entering the mainstream spotlight.

In contrast, USDM’s market cap is only $3.57 million, with deployment mostly limited to Ethereum (67.46%), Polygon (18.58%), and Arbitrum (7.96%). It currently lacks the multichain presence and institutional support that USDC enjoys.

USDC Stablecoin Statistics. Source: DefiLlama – Techtoken

One user on X summed it up:

“Love the ideas behind it, but I can’t shake the feeling that USDC would’ve been a better fit. There’s just no replacement for real-world integrations.”

Love the ideas behind it, but this is why I can’t shake the feeling USDC would’ve been a better fit and less reinventing the wheel so to speak.

I also see very few uses for stable coins that lack government level integrations

— Andrew Jewburg – Cult Member (@shaggyrax) July 30, 2025

Still, USDM is targeting a different use case. It’s not trying to be the next USDC; it’s building tools for businesses that need control, compliance, and selective visibility rather than just a fast-moving stablecoin.

This is especially important as the SEC intensifies discussions around crypto regulation, including key proposals like in-kind ETFs for crypto assets, which could define how stablecoins and other digital assets are treated in the U.S. financial system.

USDM Stablecoin Statistics. Source: DefiLlama – Techtoken

Why USDM Could Set a New Standard for Enterprise Finance

What sets USDM Stablecoin apart is its focus on enterprise-grade workflows, a domain that traditional stablecoins have largely ignored.

Imagine a large corporation with legal departments, payroll divisions, and financial auditors, each needing different access to transaction data. With USDM, these roles can have custom visibility into financial operations, ensuring compliance without sacrificing privacy.

This is crucial for sectors like healthcare, defense, and finance, where data access must be tightly controlled. Blockchain solutions today are often too transparent for such use cases. USDM bridges that gap, blending blockchain’s efficiency with real-world privacy needs.

It’s also worth noting how this push for advanced functionality aligns with broader crypto trends.

As regulators debate new frameworks and rules for crypto ETFs and altcoin classifications, highlighted in the recent Crypto ETF Altcoin Rule, stablecoins like USDM are showing what future-ready infrastructure could look like.

Even if USDM doesn’t rival USDC in size anytime soon, it could pave the way for a new generation of stablecoins that serve enterprise needs first, and retail second.