From the United States to Hong Kong, stablecoin regulation has entered a "national-level race" phase
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From the United States to Hong Kong, stablecoin regulation has entered a "national-level race" phase
Deeper changes are quietly taking place at the heart of traditional finance.
Navigating Web3 tides with focused insightsAuthor: Cobo
This week, the global stablecoin sector made critical progress in both regulatory clarity and real-world applications, laying a solid foundation for its accelerated integration into mainstream finance.
The United States released a 168-page Digital Assets Strategic Report, for the first time classifying stablecoins as core financial infrastructure and clearly delineating regulatory boundaries for decentralized finance (DeFi) and self-custody, aiming to eliminate past uncertainties that suppressed innovation. Meanwhile, Hong Kong officially opened its stablecoin licensing application process on August 1, with its "high but narrow" standards designed to ensure a robust and orderly market launch.
Deeper transformations are quietly unfolding at the heart of traditional finance. JPMorgan Chase has integrated USDC into its credit card rewards system serving 80 million users, while PayPal is using stablecoins to settle over a hundred tokens directly into merchant accounts.
These traditional giants are rapidly embedding blockchain technology into their core payment processes, signaling the accelerated arrival of a new era in global financial infrastructure built on stablecoins.
Market Overview & Growth Highlights
Total stablecoin market cap reached $266.99b (approximately $267 billion), up $1.776b (about $18 billion) from the previous week. In terms of market share, USDT maintained its dominant position at 61.67%; USDC ranked second with a market cap of $63.683b (approximately $637 billion), representing 23.85%.
Blockchain Network Distribution
Top three networks by stablecoin market cap:
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Ethereum: $133.276b ($133.3 billion)
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Tron: $82.876b ($82.9 billion)
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Solana: $11.418b ($11.4 billion)
Top three fastest-growing networks this week:
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TON: +17.40% (USDT share: 80.52%)
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Cardano: +11.84% (USDM share: 32.05%)
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Sui: +10.94% (USDC share: 59.71%)
Data from DefiLlama
🎯 U.S. Releases Digital Assets Strategy Report: Stablecoins Prioritized, DeFi Compliance and Self-Custody Integrated into National Strategy
This week marked a pivotal shift in U.S. digital asset regulation. The White House released the Digital Assets Strategy Report, a comprehensive 168-page document covering key issues including banking systems, stablecoins, tax policy, illicit finance, and strategic reserves. The central message is clear: the U.S. will gradually move away from suppression tactics like “Operation Choke Point 2.0” and instead advance a dollar-led on-chain financial system through legislation such as the GENIUS Act, supporting compliant infrastructure exemplified by stablecoins.
The regulatory stance toward DeFi protocols and self-custody tools also underwent significant change. The report proposed, for the first time, a Bank Secrecy Act (BSA) exemption mechanism for “technology publishers,” explicitly distinguishing them from “financial intermediaries.” This legal distinction marks regulators’ willingness to bring non-custodial development activities into defined compliance boundaries—reducing developer risk and laying the groundwork for the U.S. to reclaim technological leadership in on-chain finance.
Simultaneously, the SEC launched “Project Crypto,” led by Chairman Paul Atkins, focusing on three pillars: establishing clear asset classification standards, protecting users’ rights to self-custody, and enabling platform-based crypto applications to integrate staking, lending, and trading services under a unified regulatory framework. This shift signals the SEC’s transition from enforcement-driven oversight to structural regulation, creating space for platforms to expand compliantly.
To reduce industry uncertainty, the report offers multiple tax clarifications, including accounting and tax treatment recommendations for mining, staking, NFTs, and charitable donations. It also recommends reviewing the applicability of the Corporate Alternative Minimum Tax (CAMT) to digital assets to simplify tax barriers for on-chain payments. The report emphasizes that regulation should focus on “combating real risks and incentivizing compliant participation,” strongly promoting regulatory sandboxes and safe harbor mechanisms to open experimental pathways for compliant innovation.
🎯 Stablecoins Integrate into U.S. Banking Infrastructure: Traditional Financial System Enters Restructuring Phase
Coinbase partnered with JPMorgan Chase to offer three types of on-chain access to its 80+ million customers: purchasing crypto assets with Chase credit cards, converting Ultimate Rewards points into USDC on Base chain, and direct bank account linking. This marks the first integration of a mainstream bank rewards program with on-chain assets, signifying that stablecoins are entering U.S. consumer finance infrastructure and lowering the barrier for traditional users to enter the crypto world.
This partnership redefines the boundary between loyalty points and on-chain assets. Chase transforms its previously closed, low-liquidity credit card points into USDC, which can circulate on-chain, building a “bank-native crypto layer” with programmability and interoperability. For users, accessing crypto assets is increasingly embedded within everyday spending. For banks, it represents a high-engagement method to proactively build on-chain liquidity without altering existing financial structures.
Zooming out, JPMorgan’s embrace of crypto reflects a broader trend of systemic adoption of stablecoins and on-chain finance across U.S. banking. On one hand, leading banks deepen their on-chain presence via proprietary stablecoins and native services (e.g., JPM Coin and on-chain collateralized lending). On the other, smaller banks rely on core system upgrades from fintech providers like FIS and Fiserv, leveraging Circle’s APIs and custody services to quickly enable stablecoin integration and settlement. Meanwhile, Visa empowers banks to issue and manage on-chain assets via VTAP, driving their transformation from traditional financial intermediaries to asset issuance nodes.
With compliance frameworks maturing and technical services advancing, banks are evolving into gateways for large-scale distribution of on-chain assets. This shift triggers industry-wide restructuring: card networks expand token issuance capabilities, tech providers bridge on-chain assets with banking systems, and banks transition from passive network participants to active definers of on-chain asset entry points.
🎯 PayPal Launches 'Pay with Crypto': Cryptographic Reengineering of the Traditional Four-Party Payment System
PayPal is redefining the foundational logic of global payment networks. Its newly launched “Pay with Crypto” service supports over 100 major cryptocurrencies and wallets such as Coinbase, MetaMask, and OKX, allowing users to initiate payments with any token, which are instantly converted into PYUSD in the backend and settled in USD to merchants. With a fee of just 0.99%, it is far below cross-border credit card transaction costs. This “open front-end, anchored back-end” design preserves users’ freedom to pay with crypto assets while leveraging stablecoins to ensure speed and predictability in USD settlements—enabling on-chain payments to seamlessly enter standard commercial workflows for the first time.
Following “PayPal World,” which connected global fiat networks, “Pay with Crypto” integrates on-chain assets into this unified account system, making cryptocurrencies standardized payment instruments. At its core, it restructures the payment stack: PYUSD drives low-friction conversion and standardized settlement, while the closed-loop account system consolidates fiat and crypto into a single clearing path, gradually forming PayPal’s proprietary “settlement network.”
This architecture deconstructs and reconstructs the traditional four-party payment model. Users initiate payments directly from wallets, funds settle instantly—eliminating reliance on issuing bank advances and card network authorizations. The traditional revenue model based on credit and interchange fees is eroded. PayPal’s value capture shifts from interchange fees to in-system service charges and asset management: including instant crypto conversion, stablecoin minting/redeeming, on-chain treasury management, and API access. This transformation turns PayPal from a “participant in the payment network” into a “designer of capital flow pathways.”
For merchants, this means drastically reduced cross-border fees, instant fund settlement, and access to a new market of 650 million crypto users. For consumers, while losing the credit function of credit cards, they gain lower-cost transactions and greater asset flexibility. Looking ahead, PayPal is using stablecoins as a core tool to dismantle the role divisions of the credit card era and rebuild value chains around on-chain flows, aiming to dominate the clearing logic and profit models of next-generation payment systems.
Market Adoption
🌱 FIS Partners with Circle to Launch Bank Stablecoin Payment Service
Key Takeaways
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Fintech giant FIS (Fidelity National Information Services) partners with Circle to integrate USDC stablecoin into FIS's payment hub system;
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This collaboration will enable U.S. banks to offer domestic and cross-border payment services using USDC to their customers, expected to launch by year-end;
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FIS processes over $10 trillion in transactions annually; this integration provides Circle with a distribution channel reaching thousands of financial institutions, significantly expanding USDC’s potential reach.
Why It Matters
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This partnership marks a shift of stablecoins from “marginal innovation” to core financial infrastructure. Following the introduction of U.S. stablecoin legislation and Fiserv (a competitor of FIS) announcing its own stablecoin FIUSD, FIS’s move further confirms traditional financial giants’ recognition of stablecoin value. As a banking technology provider, FIS’s involvement will greatly accelerate stablecoin integration into legacy banking systems, paving the way for mass adoption.
🌱 JPMorgan Partners with Coinbase to Open Gateway to Crypto for 80 Million Customers
Key Takeaways
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JPMorgan Chase and Coinbase have formed a groundbreaking partnership to provide 80 million banking customers with easy access to cryptocurrencies. Starting fall 2025, customers can use Chase credit cards to buy crypto assets directly on Coinbase;
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In 2026, Chase Ultimate Rewards points will be redeemable for USDC at a rate of 100 points per $1, executed on Coinbase’s Base chain, transforming traditional bank points into liquid on-chain assets;
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The partnership will link Chase bank accounts directly to Coinbase, offering seamless crypto purchase experiences and lowering the entry barrier for mainstream consumers.
Why It Matters
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This partnership marks a historic shift—from skepticism to active embrace—by America’s largest bank toward cryptocurrency, representing a milestone in the convergence of traditional finance and the crypto ecosystem. The selection of USDC as the redemption currency underscores its role as a “bridge currency” connecting traditional and crypto worlds. Rather than being abruptly disrupted, traditional payment models are being incrementally transformed—financial giants are integrating the liquidity and programmability of on-chain assets to convert closed, low-liquidity point systems into open, high-liquidity digital assets, positioning themselves for the future financial system. This move will significantly accelerate user growth on the Base network and mainstream adoption of USDC, with profound implications for the entire crypto ecosystem.
Macro Trends
🔮 Tether Releases Q2 Earnings: $4.9B Net Profit, $4B Invested in U.S. Projects
Key Takeaways
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Tether International, issuer of the USDT stablecoin, reported a net profit of $4.9 billion in Q2, with $3.1 billion from recurring income and $2.6 billion from appreciation in gold and Bitcoin prices;
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The company holds over $162.5 billion in reserve assets against $157.1 billion in liabilities (outstanding USDT), maintaining a $5.4 billion surplus. Its Bitcoin holdings are valued at $8.9 billion (approx. 83,200 BTC);
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Tether has over $127 billion exposure to U.S. Treasuries; USDT supply increased by $13 billion this quarter, and the company has invested about $4 billion in U.S. projects related to AI, renewable energy, and digital communications.
Why It Matters
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With the passage of the GENIUS Act, stablecoins are rapidly integrating into broader financial infrastructure. As the largest stablecoin issuer, Tether’s CEO has stated the company will comply with new regulations and issue an onshore version of its stablecoin. With over $162.5 billion in reserves and massive holdings in U.S. Treasuries, Tether has become a significant dollar financial instrument. By reinvesting profits into strategic U.S. industries—including XXI Capital’s Bitcoin treasury firm, video platform Rumble, and crypto wallet development—Tether demonstrates how stablecoin giants are actively transitioning into compliant financial institutions under regulatory frameworks while expanding into broader tech and finance domains.
🔮 Deloitte: 40% of CFOs at Billion-Dollar Enterprises Plan to Adopt Crypto Payments or Investments Within Two Years
Key Takeaways
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A recent Deloitte survey shows 99% of chief financial officers (CFOs) expect to use cryptocurrencies for business functions long-term; respondents were from North American companies with annual revenues of at least $1 billion;
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23% of CFOs said their finance departments will use crypto for investments or payments within two years; among companies with over $10 billion in revenue, this figure approaches 40%;
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Although 43% of CFOs remain concerned about price volatility, 15% expect their finance teams to purchase non-stable cryptocurrencies as part of investment strategies within the next 24 months.
Why It Matters
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Against the backdrop of Trump’s executive order to establish a strategic Bitcoin reserve and the GENIUS Act providing regulatory clarity, corporate acceptance is steadily rising. At the time of Deloitte’s report, dozens of public companies had already begun accumulating cryptocurrencies such as Bitcoin, Ethereum, and Solana. CFOs at enterprises with over $10 billion in revenue are more proactive, with nearly a quarter (24%) stating they will invest in non-stable cryptos within two years—indicating a fundamental shift in institutional attitudes toward digital assets, moving from观望 to action.
New Product Releases
👀 Interactive Brokers Considers Issuing Own Stablecoin to Reshape Brokerage Account Cash Flows
Key Takeaways
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Interactive Brokers (IBKR) is evaluating the feasibility of issuing its own stablecoin, potentially used for instant customer account top-ups, asset transfers, and 24/7 clearing and settlement to improve cash flow efficiency;
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The company is exploring two paths: launching a proprietary stablecoin or supporting third-party stablecoins (e.g., USDC, PYUSD), aiming to bridge brokerage accounts and crypto assets;
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IBKR serves 3.87 million client accounts (up 32% YoY) and saw its stock rise 47% this year. This initiative extends its digital finance strategy, following prior moves such as partnering with Paxos and launching the prediction market ForecastEx.
Why It Matters
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As a traditional brokerage firm entering the stablecoin space, IBKR’s move signifies the accelerating digital transformation of financial infrastructure. Its plan would fundamentally alter brokerage cash flow mechanics—evolving from T+1/T+2 settlement to “instant settlement”—challenging crypto-native platforms like Coinbase and signaling a paradigm shift from “trade-time driven” to “account-state driven” clearing systems. This reflects growing recognition among large financial institutions of blockchain’s value in capital efficiency and indicates a regulatory environment increasingly welcoming stablecoins into compliant finance.
👀 Blockchain Infrastructure Alchemy Upgrades 'Cortex Engine,' Boosting Stablecoin Transaction Speed by 66%
Key Takeaways
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Alchemy launches the “Cortex Engine” architecture, reducing blockchain API response times from 300–400 milliseconds to under 50 milliseconds, cutting transaction latency by 66%;
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Known as the “AWS of crypto,” Alchemy provides infrastructure support to most major stablecoin issuers (e.g., Paxos, Circle); this upgrade will directly enhance stablecoin transaction speeds;
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The new architecture achieves throughput of hundreds of thousands of requests per second, with individual blockchain node capacity increasing 1,000-fold—approaching the processing power of major traditional payment systems.
Why It Matters
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Stablecoin transaction volumes now rival those of Visa and Mastercard international payments, but speed has remained a bottleneck. Alchemy’s upgrade reduces blockchain response times below 100 milliseconds (the human perception threshold is ~200ms), enabling stablecoin payments to finally match traditional payment systems in user experience. As a key infrastructure provider for decentralized applications, Alchemy supports major institutions including Coinbase, Stripe, and JPMorgan. This performance leap will impact a broad Web3 ecosystem, removing technical barriers to stablecoin expansion in global payments and accelerating blockchain payment adoption in mainstream markets.
👀 MetaMask Launches 'Stablecoin Earn' Feature, Allowing Users to Earn Yield Directly in Wallet
Key Takeaways
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MetaMask officially launches its “Stablecoin Earn” feature, allowing users to deposit major stablecoins like USDT, USDC, and DAI directly within the wallet interface;
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The feature is powered by Aave, a leading DeFi protocol, enabling users to automatically earn yield on their stablecoins;
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No lock-up periods apply—users can withdraw funds anytime, lowering the barrier to DeFi participation.
Why It Matters
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This marks the world’s largest Web3 wallet, MetaMask, directly integrating yield-generating products and bringing DeFi functionality to the forefront of the wallet UI—greatly simplifying the process for average users to engage with DeFi. By partnering with Aave, MetaMask ensures product safety while reducing learning curves, potentially attracting more traditional users to experiment with crypto yield management and advancing the practical adoption of DeFi.
👀 Routable Partners with Brale to Launch Global Stablecoin Payment System
Key Takeaways
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Payment platform Routable announces a partnership with Brale to integrate stablecoin payments into its existing AP (accounts payable) automation system, alongside traditional methods like ACH;
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The collaboration enables Routable clients to access stablecoins issued by Brale, Circle, and Paxos across 19 blockchain networks, including Ethereum, Solana, Base, and Canton;
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Enterprises can easily select blockchain networks via API variables without additional technical integration, enabling payments to over 220 countries and regions in 140+ currencies.
Why It Matters
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This partnership signals stablecoins’ accelerating entry into enterprise payments, seamlessly integrating blockchain payment capabilities with traditional corporate finance software. By supporting multiple chains and stablecoin issuers, Routable and Brale break down silos between blockchain ecosystems, offering businesses flexible options for instant global payments and demonstrating stablecoins’ immense potential as cross-border payment infrastructure.
👀 Cash App Launches Pools Feature, Simplifying Group Payment Workflows
Key Takeaways
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Cash App officially launches its Pools group payment feature, allowing users to create funding pools for collective payments, supporting internal transfers and external payments via Apple Pay and Google Pay;
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The new feature addresses the pain point faced by 60% of U.S. adults who participate in group collections, eliminating the burden of fronting money, with support for setting goals, tracking progress, and monitoring contributions in real time;
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The feature is currently rolling out to select users and will expand to all 57 million monthly active users in the coming months, marking the beginning of Cash App’s shift toward social financial management.
Why It Matters
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The Pools feature aligns with younger users treating financial management as a social experience, effectively connecting Cash App’s existing suite of banking and payment tools. By streamlining group payments and integrating mainstream payment methods, Cash App strengthens its position as a comprehensive financial platform while unlocking the vast market of group financial management. This product strategy reflects an industry-wide trend of payment platforms evolving from simple transaction tools into social financial collaboration platforms.
👀 SoFi CEO Announces Crypto Expansion Plans: Staking, Lending, and Stablecoin Launch Ahead
Key Takeaways
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Following strong earnings, SoFi CEO Anthony Noto announced a full-scale expansion of crypto services, planning to hire more staff and offer crypto-backed lending and staking;
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As the largest online lender in the U.S., SoFi plans to relaunch spot crypto trading by year-end, allowing users to buy and hold digital tokens such as Bitcoin and Ethereum;
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Noto noted that SoFi’s banking charter gives it an advantage over competitors in launching a stablecoin earlier, since the OCC allows banks to issue stablecoins, whereas rulemaking under the GENIUS Act may take 12–18 months.
Why It Matters
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SoFi’s crypto expansion highlights the accelerating convergence between traditional finance and digital assets. Its banking license could give it a head start in the stablecoin race. As traditional banks like JPMorgan and Bank of America express interest in blockchain payments and stablecoins, fintech firms are aggressively competing for market share. SoFi’s comprehensive strategy reflects the strategic importance banks now place on crypto assets, offering users more diverse digital asset services and signaling a key trend in the digital transformation of financial services.
👀 Visa Expands Stablecoin Settlement Platform: Adds Stellar, Avalanche, and Three New Stablecoins
Key Takeaways
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Visa announces its stablecoin settlement platform will, via partnership with Paxos, add support for PayPal USD (PYUSD) and Global Dollar (USDG), along with Circle’s euro-denominated stablecoin EURC;
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The platform expands blockchain support from Ethereum and Solana to include Stellar and Avalanche, enabling settlement of four stablecoins across four blockchains;
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This expansion allows partners to conduct stablecoin settlements in both USD and EUR, reducing friction for wallets and developers.
Why It Matters
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As a traditional payment giant, Visa has been exploring USDC settlement since 2020. This multi-currency, multi-chain expansion marks a full upgrade of its crypto strategy. As payment providers, fintechs, and banks seek faster cross-border solutions, stablecoins are gaining widespread adoption. Rubail Birwadker, Visa’s Head of Global Growth Products and Strategic Partnerships, stated: “When stablecoins are trusted, scalable, and interoperable, they can fundamentally transform how money moves globally.” This move will accelerate stablecoin adoption in mainstream payments, expanding blockchain-based stablecoin payments from crypto niche to broader global markets.
👀 Clearpool Launches Payment Financing Service, Introducing Yield-Bearing Token cpUSD
Key Takeaways
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Decentralized credit platform Clearpool launches a stablecoin credit pool targeting Payment Finance (PayFi), offering short-term financing solutions for fintechs involved in cross-border transfers and card processing;
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The newly introduced yield-bearing token cpUSD is backed by PayFi vaults and liquid stablecoins, with yields derived from real-world payment flows rather than speculative crypto activity;
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Clearpool has already provided over $800 million in stablecoin credit to institutional borrowers including Jane Street and Banxa, focusing on bridging liquidity gaps caused by settlement timing differences between fiat and stablecoins.
Why It Matters
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Clearpool’s new product highlights the central role of stablecoins in global payment infrastructure. CEO Jakob Kronbichler noted: “What many overlook is that while stablecoins settle instantly, fiat does not—forcing fintechs to front liquidity to cover the gap.” Especially in emerging markets where traditional banking channels are slow or costly, PayFi pools will offer institutions short-term credit cycles of 1–7 days to meet pre-fiat-settlement liquidity needs. By tying DeFi yields to real-world payment demand, cpUSD offers holders a stable return driven by actual business activity rather than speculation—marking a significant expansion of DeFi into broader financial services.
Capital Moves
🌱 JPMorgan: Circle to Pay Coinbase ~$300M in Distribution Fees in Q1 2025
Key Takeaways
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JPMorgan reports that Coinbase will receive approximately $300 million in distribution payments from Circle in Q1 2025—exceeding Circle’s own net income of $230 million;
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Coinbase holds $1.6 billion worth of Circle shares, but greater value comes from the USDC ecosystem: $13 billion in USDC balances on its platform generate $125 million in revenue, while off-platform Reserve Fund revenue sharing brings in $170 million in nearly 100%-margin income;
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JPMorgan estimates the total economic value of Circle-related activities to Coinbase shareholders at $55–60 billion, suggesting the market may underestimate the strategic importance of the USDC ecosystem.
Why It Matters
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This reveals how major crypto exchanges are maturing into profitable stablecoin-centric business models. Coinbase’s role as a USDC distributor generates not only high-margin revenue but also user growth—Circle’s incentives allow Coinbase to acquire customers at zero or negative cost. This case illustrates that stablecoins are no longer just mediums of exchange but have become core revenue drivers for crypto platforms, indicating that stablecoin economics will be a key factor in valuing crypto enterprises.
💰 Yuanbi Technology Raises $40M Series A2, Led by ZhongAn International
Key Takeaways
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Stablecoin infrastructure company Yuanbi Technology completes nearly $40 million in Series A2 funding, led by ZhongAn International, Zhongwan International, CuiCan Investment, and Hivemind Capital, with Sequoia China participating;
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The company has signed a strategic MOU with ZhongAn Bank to explore stablecoin applications in regulated financial services and previously participated in HKMA’s stablecoin sandbox pilot;
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Yuanbi Technology previously launched HKDR, a Hong Kong dollar-pegged stablecoin, and completed a $7.8 million Series A1 round last September with participation from Sequoia China, demonstrating consistent fundraising ability.
Why It Matters
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This funding round reflects Hong Kong’s active efforts to build a compliant stablecoin ecosystem. Participation by institutions like ZhongAn Bank signals accelerating convergence between traditional finance and blockchain technology. As a participant in the HKMA pilot, Yuanbi’s HKDR stablecoin could become a key financial infrastructure under Hong Kong’s virtual asset regulatory framework, holding strategic significance for positioning Hong Kong as a major Asian crypto hub.
💰 Zodia Markets Secures $18.25M Series A Round Backed by Circle Ventures, Expanding Stablecoin Payment Infrastructure
Key Takeaways
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Zodia Markets completes an $18.25 million Series A round led by Pharsalus Capital, with participation from Circle Ventures and others; funds will accelerate international expansion and stablecoin payment solutions;
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Since its founding in 2021, the company has received ongoing support from Standard Chartered’s innovation arm SC Ventures and Asia’s leading digital asset firm OSL Group, establishing leadership in cross-border stablecoin flows;
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Zodia Markets currently supports over 20 fiat currencies and 70+ digital assets (including USD and non-USD stablecoins), focusing on providing institutions with real-time wholesale trading, settlement, and cross-border capital movement services.
Why It Matters
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This funding highlights the deep integration trend between traditional banks and crypto infrastructure. As a Standard Chartered-backed digital asset platform, Zodia Markets is reshaping institutional cross-border payment models via stablecoins. Circle Ventures’ participation validates its strategic position in institutional-grade stablecoin infrastructure. By combining traditional FX capital flows with real-time stablecoin settlement, the platform signals global banks’ growing recognition of stablecoins as core components of their payment infrastructure, driving digital transformation in wholesale banking.
💰 Stable Raises $28M Seed Round to Build Payment Blockchain Optimized for USDT
Key Takeaways
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Stable completes a $28 million seed round led by Bitfinex and Hack VC, with participation from Franklin Templeton, Castle Island Ventures, and KuCoin Ventures;
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The blockchain project uses USDT as its gas token, aiming to deliver fast, low-cost, and stable digital payment infrastructure;
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Stable enters the competitive landscape of stablecoin-focused blockchains, where projects like Plasma already exist—Plasma recently raised $373 million for its stablecoin network.
Why It Matters
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The stablecoin market has grown to a $273 billion market cap, with USDT and USDC dominating. Demand for blockchain infrastructure optimized specifically for stablecoin payments is rising. Backed by angel investors including Tether CEO Paolo Ardoino, Stable reflects strong industry interest in blockchain solutions tailored for stablecoin transactions. Institutional participation from Franklin Templeton signals accelerating institutional capital inflow into stablecoin infrastructure, further driving stablecoin adoption in global payment and settlement systems.
Regulation & Compliance
🏛️ Hong Kong Stablecoin Regulation Now Effective: Dozens of Institutions Express Intent to Apply for Licenses
Key Takeaways
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The Stablecoin Ordinance took effect on August 1, with the HKMA opening applications until September 30; the first license is expected to be issued early next year;
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Stanley Chan, CEO of Standard Chartered Hong Kong and Greater China & North Asia, confirmed the group is reviewing documentation and exploring use cases, aiming to submit a stablecoin license application soon;
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According to incomplete data, dozens of institutions have expressed intent to apply, including JD ChainTech, Yuanbi Innovation, Standard Chartered Bank, Anyi Group, and Hong Kong Telecom;
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Meanwhile, more local banks, tech firms, and Web3 teams are preparing further around clearing systems, custody mechanisms, and payment interfaces.
Why It Matters
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The HKMA emphasizes high barriers to entry for stablecoin licensing, initially issuing only a few licenses. Applicants must meet rigorous requirements in compliance, concreteness, and sustainability. This marks Hong Kong’s transition from sandbox testing to formal regulation, attracting traditional banks, tech firms, and Web3 teams to build stablecoin businesses—a strategically significant step in reinforcing Hong Kong’s status as an international financial center.
🏛️ U.S. SEC Chair Atkins: 'Most Crypto Assets Are Not Securities'
Key Takeaways
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SEC Chair Paul Atkins announces the launch of “Project Crypto,” aimed at swiftly implementing President Donald Trump’s urged new crypto policies by modernizing securities rules to accommodate digital assets, directly challenging former SEC Chair Gensler’s stance;
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Atkins stresses that “most crypto assets are not securities” and instructs SEC staff to draft clear, simple rules for crypto asset issuance, custody, and trading;
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The SEC will provide “tailored disclosure requirements, exemptions, and safe harbors” for crypto securities, covering ICOs, airdrops, and network rewards, and will support self-custody wallets and “super app” one-stop services.
Why It Matters
This marks a major philosophical shift in U.S. crypto regulation. Atkins’ explicit support for Trump’s goal of a “golden age of crypto” may lure back crypto firms that previously left the U.S. The new SEC policy will allow broker-dealers to offer multiple asset classes on a single platform without multiple licenses, while providing protections for software developers. This significant policy reversal signals a fundamental change in the U.S. regulatory landscape, potentially bringing market certainty and fostering innovation.
🏛️ Germany’s AllUnity Launches BaFin-Regulated Euro Stablecoin EURAU
Key Takeaways
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AllUnity, a joint venture of DWS, Galaxy, and Flow Traders, launches EURAU—the first euro stablecoin in Germany compliant with MiCAR regulations and licensed by German financial regulator BaFin as an e-money institution;
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Issued as an Ethereum ERC-20 token, EURAU is backed by a European banking consortium as custodian, primarily targeting financial institutions, fintechs, and corporate clients needing regulated, instant cross-border euro payments;
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The stablecoin will launch on Bullish Europe, a BaFin-regulated digital asset exchange, with initial pairs including BTC/EURAU and USDC/EURAU, with market-making provided by Flow Traders.
Why It Matters
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The launch of EURAU marks a milestone in Europe’s regulated stablecoin market. Supported by prominent institutions like BitGo, Metzler Bank, and Fireblocks, this stablecoin reflects a broad trend of embedding compliant stablecoins into European financial infrastructure. AllUnity CEO Alexander Höptner calls this a crucial step toward “financial sovereignty” in the digital European economy, showing the EU’s effort via MiCAR to build an independent euro-based digital payment system separate from dollar-dominated stablecoins, offering European institutions locally compliant payment solutions.
🏛️ South Korea’s Central Bank Establishes Crypto Asset Division, Responding to Momentum in Domestic Stablecoin Development
Key Takeaways
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The Bank of Korea (BOK) establishes a new virtual asset division tasked with monitoring crypto markets and leading internal discussions on won-pegged stablecoins, placed under the Financial Payment Systems Bureau;
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The central bank simultaneously renames its “Digital Currency Research Team” to “Digital Currency Team,” signaling a shift from theoretical exploration to active practice;
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South Korea’s newly elected president Lee Jae-myung pledges to promote the domestic stablecoin market to prevent capital outflows, and ruling party lawmakers have submitted bills to establish a regulatory framework for won-pegged stablecoins.
Why It Matters
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This move by the BOK reflects a global shift in central banks’ attitudes toward stablecoins—from caution to active engagement. Amid U.S. government support for dollar-based stablecoins, South Korean authorities and financial institutions are acting swiftly to prevent capital flight and dollarization. The decision to pause its CBDC project in favor of stablecoins indicates Asian financial centers are seeking balance between central bank digital currencies and private-sector stablecoins, accelerating the formation of Asia’s stablecoin ecosystem.
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