Google enters the payment chain, stablecoins enter the BaaS era
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Google enters the payment chain, stablecoins enter the BaaS era
As the focus of the value chain shifts toward distribution, stablecoin differentiation will increasingly depend on services and branding.
Navigating Web3 tides with focused insightsBy: Cobo
As stablecoins continue to "eat the world," the value chain's center of gravity is shifting—gradually moving from issuance to distribution. A clear trend is the rise of white-label models, where front-end platforms focus on traffic and users while professional issuers handle reserves, audits, and compliance services—what's known as "Stablecoin-as-a-Service" (STaaS). This means that as issuance barriers fall, differentiation will increasingly depend on distribution capability and brand rather than trust in the asset itself. Consequently, the future market structure may shift from a few dominant giants toward a diversified ecosystem of mid-sized players (ranging from $10–250 billion).
A similar logic is unfolding with card networks and banks. Card issuance is becoming API-driven and modularized, allowing "Card Issuing-as-a-Service" to enable more businesses to rapidly embed payment flows. Profit models are also shifting from interest and annual fees toward data accumulation and programmability.
Payment blockchains remain constrained by the "impossible trinity" of privacy, compliance, and performance. Google’s GCUL, developed for financial institutions, meets institutional needs but sacrifices openness. Combined with potential conflicts of interest between its advertising and payment networks, it remains questionable whether GCUL can become a public infrastructure for stablecoin payments.
Market Overview & Growth Highlights
Total stablecoin market cap reached $282.841b, up $6.522b week-on-week. In terms of market share, USDT maintains dominance at 59.55%; USDC ranks second with a market cap of $70.375b, representing 24.88%.
Blockchain Network Distribution
Top 3 Stablecoin Market Cap Networks:
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Ethereum: $148.551b
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Tron: $81.617b
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Solana: $12.178b
Top 3 Weekly Growth Networks:
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M By M^0 (M): +11.32%
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Dai (DAI): +9.99%
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USD Coin (USDC): +5.57%
Data from DefiLlama
🎯 Decoupling Brand from Issuance: The STaaS Future of Stablecoins
As stablecoin issuance becomes commoditized, the value chain has shifted from “issuance” to “distribution.” If the first half was dominated by institutional reserve management and minting, the second half will be determined by who can deliver stablecoins to more users and merchants.
Maturity in compliance and technology has expanded stablecoin use beyond exchanges into corporate treasury, capital markets, and consumer networks. Card networks and issuing banks are pushing them into retail payment systems. Stablecoins are evolving from cash-out tools into long-term circulating assets, significantly extending their lifecycle—and potentially bridging on-chain and off-chain economies.
In commercial competition, distribution often matters more than the product itself—and stablecoins are no exception. Success depends on widespread adoption, and white-label models are gaining traction. Platforms can now leverage stablecoin capabilities within regulatory frameworks without building their own reserve or compliance systems, optimizing payment and settlement workflows. Cases like MetaMask with Bridge and PayPal with Paxos show that user relationships and use cases reside with platforms, while reserve management and compliance audits are outsourced to issuers. Even giants like PayPal can distribute yield-bearing stablecoins without direct issuance. This “decoupling of brand and issuance” allows stablecoin functionality to be embedded as a service across broader payment and settlement processes.
In traditional finance, banks abstract deposit, lending, and card issuance into APIs—a model known as Banking-as-a-Service (BaaS). In the stablecoin era, this evolves into Stablecoin-as-a-Service (STaaS), where issuance, reserve management, auditing, and compliance are abstracted into backend services handled by specialized institutions, enabling platforms to focus on users and use cases.
Beyond “Issuance-as-a-Service,” we’re seeing a new model emerge: Card Issuing-as-a-Service. The traditional four-party model, reliant on interchange fees and interest income, is losing relevance in on-chain payments. Banks are now modularizing licenses, deposits, and credit lines, offering them via APIs to fintech firms, integrating with stablecoin programmability to deeply embed into B2B workflows such as payroll and freelancer settlements. Competitive advantage no longer stems from credit expansion, but from migration barriers, data accumulation, and programmability. When payments are tightly coupled with business operations, stablecoin infrastructure gains greater resilience and growth potential—forming a new moat.
🎯 Google Cloud Develops Permissioned Payment Chain GCUL for Financial Institutions
According to Rich Widmann, Head of Web3 Strategy at Google Cloud, Google is developing a permissioned blockchain called Universal Ledger (GCUL) for financial institutions, supporting native on-ledger banking funds, cross-currency clearing, and programmable payments.
Google’s core hypothesis is that banks must transform amid the digital currency wave—evolving from traditional clearing nodes into on-chain asset issuers and distributors. GCUL offers built-in compliance, Python smart contracts, and API access, enabling banks to migrate deposits, securities, and clearing operations on-chain and actively control fund flows. As noted in Google Cloud’s article “Beyond Stablecoins: The Evolution of Digital Currencies,” “fragmented payment systems and inefficient settlements could cost $2.8 trillion by 2030, while stablecoin growth has already proven market demand.”
Unlike Stripe’s closed-loop ecosystem, Google aims to provide neutral foundational infrastructure. It’s already piloting tokenization projects with CME, targeting institutions that lack their own chains but want to enter crypto payments. As Rich Widmann stated, “Tether won’t use Circle’s chain, Adyen might not use Stripe’s—but any institution can build payment services on GCUL.” Google hopes its “non-proprietary” infrastructure will attract broad participation.
However, GCUL’s permissioned design satisfies financial institutions’ demands for privacy, compliance, and throughput, but sacrifices the openness of public blockchains. Given Google’s entrenched interests in cloud, advertising, search, and browsers, concerns persist about its neutrality between ad and payment networks—raising doubts over whether GCUL can become a “public layer” for stablecoin payments.
Nonetheless, the earlier assumption that most value would be captured by public chain protocols like Ethereum and Solana may no longer hold. If the next $2 trillion in stablecoin capital flows into branded chains like Stripe’s Tempo, Circle’s Arc, or Google’s GCUL, then public chains like Ethereum (ETH) and Solana (SOL) could face serious challenges in value capture.
Regulatory Compliance
🏛️ Japan’s Monex Group Considers Launching Yen-Backed Stablecoin; Chairman Says ‘We’ll Fall Behind If We Don’t Act’
Key Takeaways
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Tokyo-listed financial services firm Monex Group is considering issuing a yen-backed stablecoin. Chairman Oki Matsumoto said, “Launching a stablecoin requires significant infrastructure and capital, but if we don’t get involved, we’ll be left behind.”
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The proposed stablecoin would be backed by Japanese government bonds and redeemable 1:1 for yen, primarily targeting international remittances and corporate settlements. It would leverage Monex’s Coincheck exchange and brokerage arm for distribution.
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Matsumoto revealed Monex is considering acquiring a European crypto-related company, with final negotiations underway and an announcement possibly within “days,” aiming to expand its Western market presence.
Why It Matters
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Monex’s consideration of a yen stablecoin signals rapid loosening of Japan’s crypto regulatory environment. The Japanese Financial Services Agency (FSA) plans to approve yen-backed stablecoins as early as this fall—the first time Japan permits digital currencies pegged to its legal tender. Following the 2023 lifting of the foreign stablecoin ban and March’s approval of USDC usage in Japan, major financial institutions entering the stablecoin market will boost Japan’s competitiveness in Asia’s digital asset space, offering a digital alternative for yen in international settlements.
🏛️ Circle and Paxos Partner with Bluprynt to Pilot Provenance Verification for Stablecoin Payments
Key Takeaways
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Stablecoin leaders Circle and Paxos are collaborating with fintech startup Bluprynt to pilot “provenance upfront” technology, preventing stablecoin counterfeiting and enabling real-time issuer verification.
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This technology uses cryptography and blockchain to provide token provenance, allowing regulators and investors to confirm whether tokens were issued by the claimed entity, effectively preventing fake tokens and impersonation attacks.
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With the GENIUS Act encouraging more stablecoin issuers, verifying a token’s “true identity” has become a critical security issue. Blockchain analytics firm Chainalysis has already listed counterfeiting and spoofing among common stablecoin risks.
Why It Matters
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This technology transforms compliance into a technical product rather than just legal documentation—marking the maturation of the digital asset industry. As stablecoin use expands, trust mechanisms based on technology rather than brand become crucial. Such innovation paves the way for mass adoption while meeting regulatory requirements, reducing systemic risk, and providing auditors, law enforcement, and investors with reliable verification tools.
🏛️ CFTC: Offshore Crypto Firms Can Return to U.S. Market as 'Foreign Boards of Trade'
Key Takeaways
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The U.S. Commodity Futures Trading Commission (CFTC) issued advisory guidance stating that crypto firms that left the U.S. can now serve American clients by registering as a “Foreign Board of Trade” (FBOT).
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Acting Chair Caroline Pham described this move as part of the “crypto sprint” initiative, aimed at “providing a pathway back for U.S. companies forced to establish exchanges abroad.”
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The CFTC is receiving increasing FBOT registration applications and clarifies that qualified foreign firms need not register as a Designated Contract Market (DCM), provided they are strictly regulated in their home jurisdictions.
Why It Matters
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This policy shift reflects the Trump administration’s CFTC adopting a friendlier stance toward crypto. Amid regulatory uncertainty that previously drove multiple exchanges out of the U.S., the CFTC is now actively rebuilding bridges—balancing oversight with expanded choices for American consumers. Pham called this “another deliverable for President Trump,” suggesting it’s part of broader regulatory easing. With Trump-nominated former CFTC commissioner Brian Quintenz set for reconfirmation and Commissioner Johnson departing next week, the CFTC’s pro-crypto posture may strengthen further, creating a clearer path for international crypto exchanges to return to the U.S. market.
New Product Launches
👀 Aave Launches RWA Market Horizon, Connecting Institutional Tokenized Assets with DeFi
Key Takeaways
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Aave Labs launched the Horizon market, bringing together leading institutions like VanEck, Circle, Ripple, WisdomTree, Superstate, and Centrifuge to connect institutional-grade tokenized assets with DeFi on Ethereum.
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Initial collateral includes Superstate’s USCC and USTB, and Centrifuge’s JRTSY and JAAA; Circle’s USYC will soon join. Stablecoin supply options include USDC, RLUSD, and GHO.
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Horizon leverages Chainlink SmartData (initially deploying NAVLink) to provide accurate net asset values for tokenized real-world assets, enabling real-time overcollateralized stablecoin loans within a compliant DeFi framework.
Why It Matters
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Horizon represents the convergence of DeFi and traditional finance. By integrating institutional-grade assets into decentralized lending protocols, it opens trillions in DeFi liquidity to real-world assets. The platform uses institutional compliance standards while supporting permissionless stablecoin supply—meeting regulatory needs while preserving DeFi’s open ethos. Risk analysis support from Llama Risk and Chaos Labs ensures platform safety. This marks DeFi’s formal entry into institutional markets, creating a new paradigm for on-chain liquidity and capital efficiency for traditional assets.
👀 Anchorage Digital Launches Venture Arm, Becomes Federally Chartered Stablecoin Issuer
Key Takeaways
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Crypto custody unicorn Anchorage Digital launched Anchorage Digital Ventures, a venture arm focused on early-stage on-chain protocols, particularly in Bitcoin DeFi, real-world assets, and decentralized identity.
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Previously, Anchorage Digital Bank announced it became the first federally chartered stablecoin issuer, offering a “one-stop” solution allowing institutions to launch branded stablecoins without handling technical complexity.
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The platform integrates funding, strategic guidance, and institutional access, providing startups with end-to-end support from product design to market entry, along with promises of unlimited issuance capacity and instant network connectivity.
Why It Matters
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Anchorage’s strategy reflects a broader trend of crypto infrastructure firms expanding across the financial services value chain. As the first U.S. crypto firm with a federal banking charter, its GENIUS-compliant stablecoin issuance service synergizes with its venture arm—nurturing innovation while offering compliant pathways and institutional use cases. This model accelerates institutional blockchain adoption and ensures emerging protocols meet regulatory expectations from inception.
👀 Ant International and Standard Chartered Pilot Bank-to-Wallet Payment Solution
Key Takeaways
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Ant International and Standard Chartered are piloting a Swift-based bank-to-digital wallet payment solution, having completed initial transaction tests using the ISO 20022 financial messaging standard.
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The solution leverages Ant’s Alipay+ global wallet gateway to connect over 11,500 financial institutions across 200+ countries on the Swift network with 1.7 billion user accounts across 36 digital wallets in the Alipay+ ecosystem.
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PYMNTS Intelligence found that 42% of consumers prefer digital wallets for cross-border remittances—surpassing traditional bank transfers and money transfer services. This figure rises to 44% among U.S. consumers.
Why It Matters
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This collaboration reflects the shift toward digital wallets in cross-border payments. Connecting Swift with Alipay+ breaks down barriers between traditional finance and emerging payment networks, giving banks a strategy to counter fintech disruption. Research shows 62% of U.S. and U.K. banks plan to innovate cross-border payments through fintech partnerships. Such integration will reshape the global payment landscape—especially in fast-growing Asian markets—delivering faster, more flexible international payment experiences for consumers and businesses.
👀 Tether to Issue Bitcoin-Native USDT on RGB Protocol
Key Takeaways
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Tether announced plans to issue USDT on the RGB protocol, a Bitcoin-anchored, Lightning Network-compatible smart contract and asset issuance protocol, expanding native support for the world’s largest stablecoin on Bitcoin.
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RGB enables issuers to mint and transfer assets cryptographically anchored to Bitcoin transactions but verified off-chain, reducing on-chain data load while inheriting Bitcoin’s security—enabling near-instant settlement on the Lightning Network and improved privacy.
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USDT currently circulates mainly on Tron and Ethereum, with total supply exceeding $167 billion. Tether is phasing out older chains like Omni, EOS, and Algorand due to scalability issues and plans to fully discontinue support on these networks by September.
Why It Matters
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This integration marks a strategic move by Tether to deepen investment in the Bitcoin ecosystem. The company already holds over 100,000 BTC and invested $2 billion to build 15 mining facilities in Latin America, aiming to become the world’s largest Bitcoin miner by end-2025. By offering a Bitcoin-native stablecoin channel via RGB, USDT can seamlessly integrate with Lightning wallets, merchant tools, and exchanges—providing users with faster, cheaper, and more private transactions. This aligns with Tether’s broader strategy of expanding into regulated markets, including its recent stake in Spanish exchange Bit2Me to establish a European foothold. It strengthens deep integration between stablecoins and Bitcoin infrastructure, offering a more efficient alternative for cross-border payments and remittances.
Market Adoption
🌱 Vercel’s AI Frontend Tool v0 Now Accepts USDC for Credits
Key Takeaways
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Vercel, a U.S.-based cloud development platform, now allows users to purchase credits for its AI frontend tool v0 using USDC stablecoin.
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v0, positioned as a full-stack vibe coding platform, was created by Vercel, a provider of website deployment and frontend development services.
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This marks early exploration of crypto payments in developer tools, offering developers additional payment channels.
Why It Matters
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Developer tool subscriptions accepting USDC reflect stablecoins expanding beyond pure crypto apps into SaaS and developer services. As a leading player in frontend development, Vercel’s support for USDC could encourage more tech firms to adopt crypto payments, while offering international developers alternatives to traditional payment restrictions. This trend indicates stablecoins are gradually integrating into software business models, lowering cross-border payment barriers.
🌱 Mastercard Partners with Circle to Enable Stablecoin Settlement in EEMEA Region
Key Takeaways
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Mastercard partnered with Circle to allow acquirers in Eastern Europe, Middle East, and Africa (EEMEA) to settle payments using USDC and EURC stablecoins, facilitating merchant payouts and promoting digital trade in emerging markets.
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Arab Financial Services and Eazy Financial Services are the first institutions to adopt the solution, citing reduced friction in high-volume settlements and faster, more secure payments.
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Circle reported that as of June 30, USDC circulation surged 90% year-on-year to $61.3 billion, rising another 6.4% to $65.2 billion by August 10, capturing 28% of fiat-backed stablecoin market share—an increase of 595 basis points year-on-year.
Why It Matters
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This partnership marks stablecoin settlement’s formal entry into the core infrastructure of global payment networks. As a traditional payment giant, Mastercard applies its security and compliance expertise to stablecoins, lending institutional credibility to USDC and EURC. This integration extends beyond existing crypto card collaborations, positioning stablecoins as foundational tools for everyday finance. With growing dollar and euro payment demand in emerging markets like the Middle East and Africa, this solution simplifies cross-border transactions, creating new opportunities for financial inclusion and commercial growth in these regions.
🌱 Financial Giant Finastra Integrates USDC to Settle $5 Trillion in Global Cross-Border Payments
Key Takeaways
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London-based fintech provider Finastra announced integration of its payment hub with Circle’s USDC stablecoin, enabling banks to settle cross-border transfers using USDC.
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The integration starts with Finastra’s Global PAYplus (GPP), which handles over $5 trillion in daily cross-border payment volume, offering 24/7, near-instant settlement via blockchain.
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By maintaining fiat instructions while enabling USDC settlement, banks can reduce reliance on costly, slow correspondent banking networks and innovate without building separate payment processing infrastructure.
Why It Matters
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This move signifies stablecoins expanding from the crypto industry into mainstream finance. As payment giants like Stripe and PayPal build their own stablecoin infrastructures, Finastra’s integration with USDC accelerates institutional adoption. Coinbase forecasts the stablecoin market will grow from $270 billion today to $1.2 trillion by 2028. Such financial infrastructure integrations will drive convergence between blockchain technology and traditional banking systems, revolutionizing international payments.
🌱 Venezuela’s Hyperinflation Drives Surge in Crypto Adoption
Key Takeaways
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From small family shops to large retail chains, businesses across Venezuela are accepting crypto payments via platforms like Binance and Airtm. Some even pay employees in stablecoins, and universities are launching digital asset programs.
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Venezuela ranked 13th globally in Chainalysis’ 2024 Cryptocurrency Adoption Index, with usage surging 110% year-on-year. After the government stopped intervening in the bolivar last October, the currency depreciated over 70%, and inflation hit 229% in May, pushing citizens toward crypto for value preservation.
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Crypto remittances have become a lifeline for Venezuelans. In 2023, digital assets accounted for 9% ($461 million) of the $5.4 billion in total remittances, with households increasingly relying on crypto instead of expensive, slow services like Western Union.
Why It Matters
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The Venezuelan case highlights crypto’s practical utility in hyperinflation and currency collapse environments. Facing monetary crisis, FX shortages, and difficulty opening bank accounts, ordinary people are forced to seek alternative financial tools. Despite obstacles like U.S. sanctions and connectivity issues, the crypto ecosystem has shown remarkable resilience, becoming integral to daily economic life. This large-scale adoption pattern may offer lessons for other nations facing similar economic challenges, underscoring stablecoins’ real-world role as both store of value and medium of exchange in high-inflation settings.
🌱 Gemini and Ripple Launch XRP Rewards Credit Card
Key Takeaways
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Crypto exchange Gemini partnered with Ripple to launch an XRP rewards credit card, issued by WebBank on the Mastercard network. Users earn 4% XRP cashback on gas, EV charging, and ride-hailing, 3% on dining, 2% on groceries, 1% on other purchases, and up to 10% at select partner merchants.
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The card supports XRP and Ripple’s USD stablecoin RLUSD. Post-launch, Gemini rose in the U.S. Apple App Store’s finance category, surpassing Coinbase to rank 16th and 20th respectively—despite Gemini’s daily trading volume ($382 million) being only about one-third of Coinbase’s ($4.54 billion).
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Gemini is preparing for IPO, reporting $67.9 million in revenue and a $282.5 million net loss in H1 2025—revenue up year-on-year but losses widening.
Why It Matters
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This credit card marks deeper integration of crypto into everyday spending, creating low-barrier entry points for non-crypto users. Its success drove a surge in Gemini app downloads, reflecting the accelerating mainstreaming of crypto under the Trump administration. This move serves both as a pre-IPO strategy to expand Gemini’s business lines and illustrates the industry’s shift from speculation to practical payment tools, showcasing a new competitive landscape where crypto firms vie for users through traditional financial products.
🌱 TD Securities Becomes First Third-Party Custodian on JPMorgan’s Blockchain Debt Platform
Key Takeaways
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TD Securities became the first financial institution to offer third-party custody services on JPMorgan’s Digital Debt Service (DDS) blockchain platform—an institutional milestone in bond custody.
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The collaboration enables TD Securities to provide custody for debt instruments issued, settled, and managed on JPMorgan’s blockchain, supporting precise timing (including same-day settlement), automated lifecycle management, and simplified corporate actions via smart contracts.
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TD’s investment management division successfully executed a $100 million commercial paper transaction on-chain as a test, validating the technology’s feasibility.
Why It Matters
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This partnership marks financial giants transitioning from blockchain experiments to large-scale deployment in traditional capital markets, offering benefits like reduced operational risk, faster settlement, and lower costs. As a global financial leader managing ~$4.7 trillion in assets and custodianship of $46.6 trillion, TD Securities’ participation sets a precedent for other custodians and banks adopting blockchain technology, affirming the evolving role of custodians in supporting new digital asset classes.
🌱 Arrive AI Announces Bitcoin Payroll and Plans to Issue Native Token
Key Takeaways
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Logistics company Arrive AI announced a Bitcoin payment program, allowing employees, suppliers, and customers to opt for crypto instead of dollars. CEO Dan O’Toole will be the first employee to receive salary in Bitcoin.
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The company plans to issue a native token to pay staff, settle supplier contracts, and streamline transactions within its delivery network—aiming to improve transparency, speed, and efficiency.
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Arrive AI is aggressively expanding, planning to triple its workforce with a focus on hiring AI scientists, software engineers, and product developers, emphasizing its “AI-first” operating strategy.
Why It Matters
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Arrive AI’s crypto payment initiative reflects the convergence of blockchain and logistics AI. By issuing a native token, the company not only streamlines cross-border payments but also gives employees and partners a stake in platform growth. Unlike payment giants like Mastercard focusing on stablecoins, Arrive’s direct use of Bitcoin for payroll signals growing corporate confidence in crypto as a practical payment tool—potentially driving broader adoption in commercial transactions from speculation to utility.
🌱 Square Reveals Product Roadmap, Introducing Bitcoin Payments, First-Week Loans, and Self-Service Terminals
Key Takeaways
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Square unveiled its public product roadmap, planning to launch a Bitcoin payment system including a Bitcoin wallet and automatic conversion of a portion of credit card sales into Bitcoin.
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On the financial services side, Square will let merchants apply for loans during their first week using its payment processing service and apply for credit cards without pre-approval.
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New features for restaurants include combo options, self-service kiosks, centralized menu management across locations, automatic credit card surcharges, and enhanced kitchen and reporting tools.
Why It Matters
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Square’s public roadmap marks its transformation from a payment processor into a full-stack commercial technology platform. The Bitcoin payment feature positions Square as a bridge between traditional commerce and the crypto economy, while first-week loans directly challenge traditional banking’s lengthy credit approval process. These moves not only lower financing barriers for small businesses but also demonstrate Block’s long-term bet on Bitcoin mainstreaming, potentially deeply integrating crypto assets into everyday commercial activities.
Macro Trends
🔮 U.S. Stablecoin Bill Prompting EU to Reassess Digital Euro Strategy
Key Takeaways
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The EU is reconsidering its digital euro plan due to the U.S. GENIUS Act, possibly opting to issue it on public blockchains like Ethereum or Solana instead of private ones—a major shift for a region that tightly controls cash and supports CBDCs.
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Senior ECB officials warn unregulated stablecoins could weaken European banking systems, threaten financial stability, and lead to “geopolitical dependency,” while the ECB president cautions they might undermine central banks’ monetary policy influence.
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The EU faces a dilemma in designing the digital euro: it must be attractive enough for people to choose it over dollar stablecoins, yet not so compelling that users abandon bank deposits. Economist Luis Garicano describes the ECB’s stance as “we fear stablecoins, but don’t want CBDCs to have too much advantage.”
Why It Matters
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The EU’s strong reaction to U.S. stablecoins may amplify the real-world impact of the GENIUS Act. Blockchain-based dollars have placed the EU in a bind, forcing difficult choices on the positioning of central bank digital currencies (hybrid stablecoin-CBDC models). This reveals the true power of blockchain technology—even if Trump’s claim that stablecoins will significantly extend dollar dominance isn’t entirely credible, the scale of threatened interests is evident from Europe’s intense response.
🔮 BIS Survey: One-Third of Central Banks Accelerating CBDC Work Due to Stablecoins
Key Takeaways
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BIS’s 2024 central bank digital currency survey shows one-third of central banks are accelerating CBDC research due to stablecoin and crypto developments. The ECB has repeatedly cited the U.S.’s expansive stablecoin policies as a reason for urgency around the digital euro.
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Overall CBDC research has slightly declined—from 94% in 2023 to 91% in 2024—with a sharper drop in emerging markets. “Research activity” includes study, pilots, or advancing toward production.
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45% of central banks have enacted stablecoin and crypto legislation, with another 22% in the process—meaning nearly two-thirds of economies will soon have regulatory frameworks, and about 80% are adopting dedicated laws rather than adapting existing regulations.
Why It Matters
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Central banks’ responses indicate intensifying public-private competition in digital currencies, with regulators shifting from观望 to action. While stablecoin use remains limited in most regions, growing cross-border payment applications in emerging markets are drawing regulatory attention. The widespread creation of dedicated regulatory frameworks—not repurposing old laws—shows stablecoins are now seen as a distinct financial instrument requiring special oversight, with profound implications for the global digital currency landscape.
Capital Moves
💰 Visa-Backed Stablecoin Firm Rain Raises $58M from Samsung and Others
Key Takeaways
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Stablecoin payments infrastructure startup Rain raised $58 million in Series B funding led by Sapphire Ventures, with participation from Samsung Next, Dragonfly, and Galaxy Ventures, bringing total funding to $88.5 million.
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Rain offers Visa debit and credit card services, providing “enterprise-grade stablecoin payment infrastructure” for fintechs, banks, and marketplaces—enabling clients to issue “stablecoin-powered cards, wallets, and payment apps.”
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Their cards work anywhere Visa is accepted, with transaction volume growing tenfold since January. MetaMask also recently announced plans to launch a MetaMask card supporting Mastercard merchants by year-end.
Why It Matters
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The GENIUS Act and Europe’s MiCA framework have created clear regulatory paths for stablecoins, fueling enterprise interest. Rain connects stablecoins to Visa’s global network, turning digital assets into everyday payment tools—bridging crypto and traditional finance. With the Trump administration establishing regulatory clarity, major U.S. banks like Bank of America have expressed intent to issue their own stablecoins, and the market is expected to reach trillions in scale within years—creating massive growth potential for infrastructure providers like Rain.
💰 Stablecoin Platform M0 Raises $40M in Series B
Key Takeaways
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Swiss stablecoin platform M0 raised $40 million in Series B funding led by Polychain Capital, Ribbit Capital, and Endeavor Catalyst, with existing investors Pantera and Bain Capital Crypto participating. Total funding since 2023 now reaches $100 million.
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M0’s unique “first principles” approach separates stablecoin reserve management from programmability: regulated entities manage underlying assets (like cash and U.S. Treasuries), while developers use the M0 platform to define who can create, hold, and transfer these assets.
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The M0 platform will support MetaMask’s mUSD stablecoin issuance, expected later this year on Ethereum and Linea. As of July, M0’s total supply exceeded $300 million—doubling since January.
Why It Matters
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With the U.S. passing stablecoin regulation (GENIUS Act) this year, companies like M0 are building bridges for traditional enterprises entering crypto. M0’s application-specific stablecoin model decouples reserve management from token functionality, allowing developers flexible control over digital dollar features while maintaining compliance. Bridge, acquired by payment giant Stripe for $1.1 billion last year, has integrated into M0 as the first U.S.-regulated issuer—highlighting deep convergence between traditional finance and emerging stablecoin infrastructure. This reflects market expectations that under new regulatory frameworks, thousands of competitors to Tether and USDC may emerge, transforming the industry.
💰 Ripple and Circle Invest in Cross-Border Payments Platform Tazapay
Key Takeaways
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Singapore-based cross-border payments infrastructure platform Tazapay closed its Series B round led by Peak XV Partners, with investments from crypto giants Ripple and Circle. Funds will accelerate licensing applications in key markets including the U.S., Australia, Hong Kong, and UAE.
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Tazapay is building global payment collection and settlement infrastructure on modern rails, with a key use case being fiat on-ramps for stablecoins in emerging markets—already operating one of the most extensive fiat collection networks in those regions.
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The investments from Ripple and Circle highlight Tazapay’s pivotal role in connecting traditional finance with the digital currency world—particularly in building compliant “last-mile” connections.
Why It Matters
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This funding marks a critical step in expanding stablecoin infrastructure into emerging markets. As boundaries between traditional finance and crypto blur, Tazapay’s fiat bridging services address pain points like multi-day settlement times, high fees, and intermediary dependence in cross-border payments. Strategic investments from blockchain payment leaders Ripple and Circle signal the industry is building a more complete global payment network—especially targeting underbanked emerging markets—accelerating the real-world adoption and use of stablecoins as cross-border payment solutions.
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