Stablecoins shrink, liquidity thins
DefiLlama data placed the market near $312.23 billion, with Tether’s USDT at about $184.15 billion and Circle’s USDC at roughly $73.41 billion.
The decline was tied to USDT and USDC redemptions that reduced crypto liquidity, while adjusted stablecoin transaction volume reached a record $1.78 trillion in June.
Paul Howard, senior director at trading firm Wincent, described the drop as “a relatively small pullback in what we believe is a long-term growth market.”
The same reporting said USDT still controls close to 59% of the market, leaving the sector heavily dependent on its two largest dollar-backed tokens.
Pakistan weighs Shariah vs crypto
Pakistan’s crypto regulator, PVARA chairman Bilal bin Saqib, said he held a “constructive discussion” with religious scholar Mufti Taqi Usmani on the Shariah status of digital assets after a June 10 fatwa.
Dawn reported that Saqib posted on X: “Today, I had a constructive discussion with Mufti Taqi Usmani sahib on digital assets and the ongoing conversation around their Shariah status.”
The fatwa described cryptocurrency as “merely the recording of fictitious numbers in an account,” and it said the decree maintained that the buyer did not technically become the owner of those books through such transactions.
Dawn also said the decree stated that “Obtaining an educational course through cryptocurrency is not valid.”
The meeting and fatwa were framed against Pakistan’s regulatory shift, including the Virtual Assets Act 2026 that established PVARA and the April SBP move allowing banks to open accounts for licensed virtual asset service providers.
Dialogue, compliance, and market risk
Cointelegraph also reported that Saqib said he shared that “blockchain, digital assets, stablecoins, and tokenized real-world assets represent a broad spectrum of technologies and use cases,” as he sought distinctions among asset categories.
The same reporting tied the religious scrutiny to stablecoins, noting the ruling reportedly said purchases made with crypto, including stablecoins such as USDT, were not permitted because digital tokens did not qualify as recognized property or wealth under Islamic law.
Dawn added that Saqib heads PVARA, an autonomous federal body governed by a multi-stakeholder board including the State Bank of Pakistan (SBP) governor, and it said the mandate includes fostering Shariah-compliant innovation through regulatory sandboxes.
In parallel, the stablecoin market story said USDT and USDC remained near their dollar pegs while transaction activity stayed high, leaving investors to watch July issuance, redemption data, exchange volumes, and ETF flows for signs of demand returning or weakening further.