Written by Cobo
This week, the global stablecoin sector has seen key progress in regulatory clarification and practical application, laying a solid foundation for its accelerated integration into mainstream finance.
The United States released a 168-page "Digital Asset Strategy Report," which for the first time designated stablecoins as core financial infrastructure and clarified regulatory boundaries for decentralized finance (DeFi) and self-custody, aiming to eliminate the uncertainty that has previously inhibited innovation. Meanwhile, Hong Kong officially opened applications for stablecoin licenses on August 1st, with its "high and narrow" standards designed to ensure a stable and orderly market launch.
Deeper changes are quietly taking place at the core of traditional finance. JPMorgan Chase is integrating USDC into its credit card points system for 80 million users, while PayPal is using stablecoins to liquidate over 100 tokens directly into merchant accounts.
These traditional giants are accelerating the integration of blockchain technology into their core payment processes, heralding the arrival of a new era of global financial infrastructure with stablecoins as its framework.
Market Overview and Growth Highlights
The total market capitalization of stablecoins reached $266.99 billion (approximately $267 billion), a weekly increase of $1.776 billion (approximately $1.8 billion). In terms of market structure, USDT continued to maintain its dominant position, accounting for 61.67%; USDC ranked second with a market capitalization of $63.683 billion (approximately $63.7 billion), accounting for 23.85%.
Blockchain network distribution
The top three stablecoin networks by market capitalization are:
Ethereum: $133.276 billion ($133.3 billion)
Tron: $82.876 billion (US$82.9 billion)
Solana: $11.418 billion
Top 3 fastest growing networks per week:
TON: +17.40% (USDT accounts for 80.52%)
Cardano: +11.84% (USDM accounts for 32.05%)
Sui: +10.94% (USDC accounts for 59.71%)
Data from DefiLlama
🎯The United States releases a digital asset strategy report: Stablecoins take priority, and DeFi compliance and self-custody are incorporated into national strategies.
This week, the US digital asset regulatory landscape underwent significant changes. The White House released its "Digital Asset Strategy Report," a 168-page document covering key topics such as the banking system, stablecoins, tax policy, illicit finance, and strategic reserves. Its core message is clear: the US will gradually withdraw from its "Operation Choke Point 2.0"-style suppression strategy and shift towards promoting a dollar-dominated on-chain financial system through legislation such as the GENIUS Act, supporting compliant infrastructure such as stablecoins.
The regulatory stance on DeFi protocols and self-custodial tools has also shifted significantly. The report, for the first time, proposes a Bank Secrecy Act (BSA) exemption for "technology publishers," clearly distinguishing them from "financial intermediaries." This legal delineation signals regulators' willingness to bring non-custodial development activities within clear compliance boundaries, mitigating risks for developers and laying the foundation for the United States to regain dominance in on-chain financial technology.
The SEC simultaneously launched "Project Crypto," led by Chairman Paul Atkins. The initiative focuses on three key areas: establishing clear asset classification standards, protecting users' right to self-custody, and promoting the integration of staking, lending, and trading services within a unified regulatory framework for platform-based crypto applications. This shift signals a shift from enforcement-based regulation to institutional-based oversight, providing platforms with room to expand their businesses while remaining compliant.
To reduce industry uncertainty, the report provides several clear tax guidelines, including recommendations for the accounting and tax treatment of activities such as mining, staking, NFTs, and charitable donations. It also recommends reviewing the application of the Corporate Alternative Minimum Tax (CAMT) to the use of digital assets to simplify tax barriers for on-chain payments. It emphasizes that the regulatory focus should shift to "combating real risks and incentivizing compliant participation," vigorously promoting regulatory sandboxes and safe harbor mechanisms to open up experimental channels for compliance innovation.
🎯Stablecoins are integrated into the US banking infrastructure, and the traditional financial system is entering a period of restructuring.
Coinbase has partnered with JPMorgan Chase to provide three on-chain access options to its 80 million+ customers: purchasing crypto assets with Chase credit cards, redeeming Ultimate Rewards points for USDC on the Base chain, and direct bank account integration. This marks the first time a major bank's points system has been integrated with on-chain assets, marking the entry of stablecoins into the US consumer finance infrastructure and lowering the barrier to entry for traditional users.
This collaboration reshapes the boundaries between points systems and on-chain assets. Chase transforms previously closed, low-liquidity credit card points into USDC, which can circulate on-chain, creating a "bank-native crypto layer" with programmability and asset interoperability. For users, access to crypto assets is becoming increasingly embedded in daily consumption behaviors. For banks, this offers a highly sticky way to proactively build on-chain liquidity networks without altering existing financial structures.
From a broader perspective, JPMorgan Chase's embrace of crypto assets epitomizes the systemic embrace of stablecoins and on-chain finance by US banks. On the one hand, leading banks are deepening their on-chain presence by developing their own stablecoins and native businesses (such as JPM Coin and on-chain collateralized lending). On the other hand, smaller and medium-sized banks are relying on core system upgrades from technology integrators like FIS and Fiserv, leveraging Circle's APIs and custodial services to quickly access and clear stablecoins. Meanwhile, Visa, through VTAP, is enabling banks to issue and manage on-chain assets on blockchain networks, driving their transformation from traditional funding intermediaries to asset issuance nodes.
As compliance frameworks are implemented and technical services mature, banks will transform into the infrastructure entrance for the large-scale distribution of on-chain assets. This will be followed by industrial restructuring around this role, with card organizations expanding their underlying token issuance capabilities, technical service providers connecting on-chain assets with banking systems, and banks shifting from passively accessing the network to actively defining on-chain asset entrances.
PayPal launches "Pay with Crypto," a cryptographic reconstruction of the traditional four-party payment system
PayPal is reshaping the underlying logic of the global payment network. Its newly launched "Pay with Crypto" service supports over 100 major cryptocurrencies and wallets like Coinbase, MetaMask, and OKX. It allows users to initiate payments with any token, instantly converting it to PYUSD in the backend and settling payments in US dollars to merchants. The fee is a mere 0.99%, significantly lower than cross-border credit card fees. This "open front-end, anchored back-end" design maintains user freedom in cryptocurrency payments while leveraging stablecoins to ensure the speed and predictability of US dollar settlements, making on-chain payments a seamless part of standard business processes for the first time.
Following PayPal World's integration of the global fiat currency network, "Pay with Crypto" integrates on-chain assets into this unified account system, making cryptocurrency a standardized payment medium. Its core approach is to restructure the payment stack, using the PYUSD stablecoin to drive low-friction exchange and standardized settlement. Relying on the closed-loop management of the account system, it integrates fiat and crypto assets into a single clearing path, gradually forming its own "PayPal Settlement Network."
This architecture deconstructs and restructures the traditional four-party payment model. Users initiate payments directly from their wallets, and funds are settled instantly, eliminating reliance on advance payments from the issuing bank and authorization from the card associations. This erodes the original revenue model based on credit and fees. PayPal's value capture shifts from interchange fees to in-system service fees and asset management: including instant crypto asset exchange, stablecoin minting/redemption, on-chain treasury management, and API access. This transformation transforms PayPal from a participant in the payment network to a designer of the funds flow path.
For merchants, this means drastically lower cross-border fees, instant funds, and access to a new market of 650 million crypto users. For consumers, while they lose the prepayment feature of credit cards, they gain low-cost payments and asset flexibility. Looking ahead, PayPal is using stablecoins as a core, dismantling the division of labor from the credit card era and restructuring the value chain around the blockchain, aiming to dominate the clearing logic and profit model of the next generation of payment systems.
Market adoption
🌱FIS partners with Circle to launch bank stablecoin payment service
Quick takeaways
Fintech giant FIS (Fidelity National Information Services) has partnered with Circle to integrate the USDC stablecoin into the FIS payment hub system.
This collaboration will enable Bank of America to provide customers with domestic and cross-border payment services based on USDC, which is expected to be launched before the end of the year;
FIS processes over $10 trillion in transactions annually. This integration provides Circle with access to thousands of financial institutions, significantly expanding the potential use of USDC.
Why it matters
This partnership signals the transformation of stablecoins from a "fringe innovation" into the foundational infrastructure of financial services. Following the introduction of stablecoin legislation in the United States and the announcement by FIS competitor Fiserv to launch its own stablecoin, FIUSD, FIS's move further confirms the recognition of the value of stablecoins by traditional financial giants. As a banking technology provider, FIS's involvement will significantly accelerate the integration and application of stablecoins within the traditional banking system, paving the way for mass adoption.
🌱 JPMorgan Chase partners with Coinbase to open the world of crypto to 80 million customers
Quick takeaways
JPMorgan Chase and Coinbase have reached a groundbreaking partnership that will provide 80 million bank customers with convenient access to cryptocurrencies. Starting in the fall of 2025, customers will be able to purchase crypto assets directly on Coinbase using their Chase credit cards.
In 2026, Chase Ultimate Rewards points will support the exchange rate of 100 points for 1 USDC for the first time. The exchange will be carried out on Coinbase's Base chain, converting traditional bank points into on-chain liquid assets;
The partnership will enable Chase bank accounts to be directly linked to Coinbase, providing customers with a seamless cryptocurrency purchasing experience and lowering the barrier for ordinary consumers to enter the crypto world.
Why it matters
This partnership marks a shift in the US's largest bank's stance on cryptocurrency from criticism to active embrace, marking a milestone in the integration of traditional finance and the crypto ecosystem. USDC's selection as the crypto reward for points redemption reinforces its status as a "bridge currency" connecting traditional finance and the crypto world. Traditional payment models are undergoing a gradual transformation, not a sudden disruption. Financial giants are integrating the on-chain liquidity and programmability of crypto assets to transform closed, low-liquidity points systems into open, highly liquid digital assets, positioning themselves for the future of finance. This move will significantly accelerate user growth on the Base network and mainstream adoption of USDC, with far-reaching implications for the entire crypto ecosystem.
Macro Trends
🔮Tether releases Q2 financial report: net profit of $4.9 billion, $4 billion invested in US projects
Quick takeaways
Tether International, the issuer of the USDT stablecoin, reported a net profit of $4.9 billion in the second quarter, of which $3.1 billion came from recurring profits and $2.6 billion from the appreciation of gold and Bitcoin prices.
The company holds over $162.5 billion in reserve assets, corresponding to $157.1 billion in liabilities (issued USDT), with excess reserves of $5.4 billion, of which Bitcoin holdings are worth $8.9 billion (approximately 83,200 coins);
Tether has over $127 billion in exposure to U.S. Treasuries, with USDT supply increasing by $13 billion this quarter. The company has invested approximately $4 billion in U.S. projects such as AI, renewable energy, and digital communications.
Why it matters
With the passage of the GENIUS Act, stablecoins are rapidly integrating into the broader financial infrastructure. Tether, the largest stablecoin issuer, has announced its CEO's commitment to comply with the new regulations and issue an onshore version of its stablecoin. With over $162.5 billion in reserves and significant holdings of US Treasury bonds, Tether has become a key US dollar financial instrument. The company has invested significant profits in strategic US industries, including XXI Capital Bitcoin Treasury, the Rumble video platform, and crypto wallet development. This demonstrates the stablecoin giant's active pursuit of transforming into a compliant financial institution within regulatory frameworks while expanding its business into the broader technology and financial sectors.
Deloitte: 40% of CFOs at billion-dollar companies plan to use cryptocurrencies for investment within two years
Quick takeaways
According to a recent Deloitte survey, 99% of chief financial officers (CFOs) expect to use cryptocurrencies for business functions in the long term. The survey targets North American companies with annual revenue of at least $1 billion.
23% of CFOs said their finance departments will use cryptocurrencies for investment or payment within the next two years. Among large companies with annual revenue of more than $10 billion, this proportion is close to 40%;
While 43% of CFOs remain concerned about price volatility, 15% of respondents expect their finance departments to purchase non-stable cryptocurrencies as part of their investment strategy within the next 24 months.
Why it matters
Against the backdrop of Trump's order to establish a strategic Bitcoin reserve and the regulatory clarity provided by the GENIUS Act, corporate acceptance is gradually increasing. The Deloitte report comes as dozens of public companies have already begun stockpiling cryptocurrencies such as Bitcoin, Ethereum, and Solana. CFOs at companies with annual revenues exceeding $10 billion are even more proactive, with nearly a quarter (24%) stating they will invest in non-stable cryptocurrencies within the next two years. This indicates a fundamental shift in institutional attitudes towards digital assets, with corporate finance departments moving from a wait-and-see approach to concrete action.
New Product Express
Interactive Brokers is considering issuing its own stablecoin to reshape brokerage account capital flows.
Quick takeaways
Interactive Brokers (IBKR) is evaluating the feasibility of issuing its own stablecoin, which it plans to use for instant deposits, asset transfers, and 24/7 clearing and settlement of client accounts to improve capital flow efficiency.
The company is exploring two paths: issuing its own stablecoin or being compatible with third-party stablecoins (such as USDC and PYUSD), with the goal of connecting brokerage accounts with crypto assets;
IBKR has 3.87 million client accounts (up 32% year-on-year) and its stock price has risen 47% this year. This move is an extension of its digital finance strategy and follows its previous partnership with Paxos and the launch of the prediction market platform ForecastEx.
Why it matters
Interactive Brokers' entry into the stablecoin market, as a traditional brokerage, signals the accelerated digital transformation of financial infrastructure. Its plan will fundamentally change the logic of brokerage account funding, evolving from "T+1/T+2" to "second-level settlement." This not only challenges crypto-native platforms like Coinbase, but also heralds a paradigm shift in the clearing system from "transaction time-driven" to "account status-driven." This move demonstrates that major financial institutions are beginning to recognize the value of blockchain technology in improving capital flow efficiency and reflects the regulatory environment's gradual acceptance of stablecoins as part of the compliant financial system.
👀 Blockchain infrastructure Alchemy upgrades its Cortex engine, increasing stablecoin transaction speeds by 66%.
Quick takeaways
Alchemy launched the "Cortex Engine" architecture, reducing blockchain API response time from 300-400 milliseconds to less than 50 milliseconds, reducing transaction latency by 66%;
As the "crypto AWS," Alchemy provides infrastructure support for most stablecoin issuers (such as Paxos and Circle). This upgrade will directly increase the speed of stablecoin transactions.
The new architecture achieves hundreds of thousands of requests per second, increasing the throughput of a single blockchain node by 1,000 times, approaching the processing capacity of large traditional payment systems.
Why it matters
Stablecoin transaction volumes rival those of Visa and Mastercard international payments, but speed has always been a drawback. Alchemy's upgrade reduces blockchain response times to below 100 milliseconds (the threshold for human perception of latency is approximately 200 milliseconds), making stablecoin payment experiences comparable to traditional payment systems for the first time. As a critical infrastructure provider connecting decentralized applications, Alchemy supports major institutions including Coinbase, Stripe, and JPMorgan Chase. This performance improvement will impact the broader Web3 ecosystem, removing technical barriers to the further expansion of stablecoins in the global payments market and accelerating the penetration of blockchain payments into mainstream markets.
👀MetaMask launches the "Stablecoin Interest" feature, allowing users to earn income directly in their wallets
Quick takeaways
MetaMask officially launched the "Stablecoin Earn" feature, allowing users to deposit mainstream stablecoins such as USDT, USDC, and DAI directly into the wallet.
This feature is supported by the well-known DeFi protocol Aave, and users can automatically earn stablecoin income through this feature;
There are no lock-up restrictions on deposits, and users can withdraw funds at any time, lowering the threshold for DeFi participation.
Why it matters
This marks the beginning of MetaMask, the largest Web3 wallet, directly integrating yield products, bringing DeFi functionality directly to the wallet interface and significantly simplifying the DeFi experience for average users. By collaborating with Aave, MetaMask ensures product security while reducing user learning curve. This is expected to attract more traditional users to explore crypto asset yield management and promote the widespread practical application of DeFi.
👀Routable partners with Brale to launch a global stablecoin payment system
Quick takeaways
Payment platform Routable announced a partnership with Brale to integrate stablecoin payments into its existing AP (accounts payable) automation system, alongside traditional payment methods such as ACH;
The partnership allows Routable customers to access stablecoins issued by Brale, Circle, and Paxos, supporting 19 blockchain networks, including Ethereum, Solana, Base, Canton, and more;
Enterprises can easily select blockchain networks through API variables without the need for additional technical integration, enabling payments to more than 220 countries and regions and more than 140 currencies.
Why it matters
This collaboration signals the accelerating entry of stablecoins into the enterprise payments space, seamlessly integrating blockchain payment capabilities with traditional enterprise financial software. By supporting multiple chains and stablecoin issuers, the Routable-Brale partnership breaks down barriers across blockchain ecosystems, providing businesses with flexible options for instant global payments and demonstrating the enormous potential of stablecoins as a cross-border payments infrastructure.
Cash App launches Pools feature to simplify group payments
Quick takeaways
Cash App officially launched Pools group payment feature, allowing users to create a pool of funds to collect group payments, supporting internal transfers within Cash App and external payments through Apple Pay and Google Pay;
This new feature addresses the pain point of group fund collection for 60% of American adults, eliminating the pressure of individual contributions and allowing users to set target amounts, track progress, and gain real-time insights into contributions.
The feature is currently available to some users and will be rolled out to all 57 million monthly active users in the coming months, marking the beginning of Cash App's transformation into social financial management.
Why it matters
The Pools feature capitalizes on the trend among younger users toward a social experience in money management, effectively integrating with Cash App's existing ecosystem of banks and payment tools. By streamlining group payments and integrating mainstream payment methods, Cash App strengthens its position as a comprehensive financial platform while also opening up the vast market for group financial management. This product strategy reflects the industry trend of payment platforms evolving from simple transactional tools to platforms for social financial collaboration.
👀SoFi CEO announces crypto expansion plan, launching staking, lending services and stablecoins
Quick takeaways
Following the release of a strong financial report, SoFi CEO Anthony Noto announced a full expansion of its crypto business, with plans to increase hiring and provide crypto-asset-collateralized lending and staking services to clients;
SoFi, the largest online lender in the United States, plans to relaunch its cryptocurrency spot trading service by the end of the year, allowing users to buy and sell digital tokens such as Bitcoin and Ethereum.
Noto said SoFi's advantage of having a banking license allows it to launch stablecoins earlier than its competitors because the OCC (Office of the Comptroller of the Currency) has allowed banks to issue stablecoins, while the rulemaking required by the GENIUS Act will take 12-18 months.
Why it matters
SoFi's crypto expansion signals the accelerating convergence of traditional finance and digital assets. Its advantageous banking license may give it an early lead in the stablecoin space. With traditional banks like JPMorgan Chase and Bank of America also expressing interest in blockchain payments and stablecoins, fintech companies are actively seizing market share. SoFi's comprehensive approach reflects the banking industry's strategic focus on crypto assets, providing users with a more diverse range of digital asset services. It also represents a significant trend in the digital transformation of financial services.
Visa expands stablecoin settlement platform, adding support for Stellar, Avalanche, and three more stablecoins
Quick takeaways
Visa announced that its stablecoin settlement platform will add support for PayPal USD (PYUSD) and Global Dollar (USDG) through a partnership with Paxos, as well as Circle's Euro stablecoin EURC.
The platform's blockchain support has been expanded from Ethereum and Solana to Stellar and Avalanche, enabling settlement of four stablecoins across four blockchains;
This expansion enables partners to settle stablecoins in both major currencies, USD and EUR, reducing friction for wallets and developers.
Why it matters
As a traditional payments giant, Visa has been exploring USDC settlement since 2020. This expansion of its multi-currency, multi-chain platform marks a comprehensive upgrade of its crypto strategy. Stablecoins are gaining widespread adoption as payment providers, fintech companies, and banks seek faster cross-border transaction solutions. Rubail Birwadker, Visa's Head of Global Growth Products and Strategic Partnerships, stated, "When stablecoins are trusted, scalable, and interoperable, they can fundamentally change how money moves around the world." This move will accelerate the adoption of stablecoins in mainstream payments, expanding blockchain-based stablecoin payments from the cryptocurrency niche to the broader global payments market.
👀Clearpool launches payment and financing services, and creates the first stablecoin income token cpUSD
Quick takeaways
Decentralized credit platform Clearpool launched a stablecoin credit pool for payment finance (PayFi), providing short-term financing solutions for fintech companies involved in cross-border transfers and card transaction processing;
The newly launched yield-generating token cpUSD is backed by the PayFi vault and liquid stablecoins, with returns derived from physical payment flows rather than speculative crypto activity;
Clearpool has provided over $800 million in stablecoin credit to institutional borrowers including Jane Street and Banxa, focusing on addressing the liquidity gap caused by the time difference between fiat and stablecoin settlement.
Why it matters
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 offer instant settlement, fiat currencies do not, forcing fintechs to bridge this gap by providing liquidity." Especially in emerging markets where traditional banking channels are slow or costly, the PayFi pool will provide institutions with short-term credit cycles of 1-7 days to meet pre-fiat settlement liquidity needs. cpUSD ties DeFi returns to real-world payment demand, providing holders with a stable income stream driven by real-world payment transactions rather than speculative cycles. This represents a significant expansion of DeFi into the broader financial services sector.
Capital layout
🌱JPMorgan Chase: Coinbase will receive approximately $300 million in distribution fees from Circle in Q1 2025
Quick takeaways
A JPMorgan Chase report shows that Coinbase received approximately $300 million in distribution payments from Circle in Q1 2025, exceeding Circle's own net income of $230 million.
Coinbase holds $1.6 billion worth of Circle shares, but the greater value comes from the USDC ecosystem: $13 billion in USDC balances within the platform generate $125 million in revenue, and the Reserve Fund revenue share outside the platform brings in $170 million in revenue with a nearly 100% profit margin.
JPMorgan Chase estimates that Circle's related economic value to Coinbase shareholders is as high as $55-60 billion, and believes that the market may underestimate the strategic importance of the USDC ecosystem.
Why it matters
This reveals the maturing business model of mainstream crypto exchage, which leverage the stablecoin ecosystem to generate high profits. Coinbase's role as a USDC distributor not only generates direct, high-margin revenue but also drives user growth. The incentives provided by Circle enable Coinbase to attract customers at zero or negative cost. This case demonstrates that stablecoins are not only a medium of exchange but also a core revenue source for crypto platforms, foreshadowing the stablecoin economy as a key driver of crypto company valuations.
💰Yuanbi Technology raises $40 million, led by ZhongAn International and others
Quick takeaways
Yuanbi Technology, a stablecoin infrastructure company, completed a nearly $40 million Series A2 financing round led by ZhongAn International, Zhongwan International, Brilliant Investment, and Hivemind Capital, with participation from Sequoia China and others.
The company has signed a strategic cooperation memorandum with ZhongAn Bank to explore the application of stablecoins in compliant financial services and has previously participated in the Hong Kong Monetary Authority's stablecoin sandbox pilot.
Yuanbi Technology has launched the HKDR stablecoin, which is pegged 1:1 to the Hong Kong dollar, and completed a US$7.8 million Series A1 financing round in September last year with participation from Sequoia China and others, demonstrating its ability to continuously raise funds.
Why it matters
This round of financing reflects Hong Kong's active efforts to build a compliant stablecoin ecosystem. The participation of institutions such as ZhongAn Bank demonstrates the accelerating integration of traditional finance and blockchain technology. As a participant in the Hong Kong Monetary Authority's pilot program, Circle Coin Technology's HKDR stablecoin is expected to become a key financial infrastructure within Hong Kong's regulatory framework for virtual assets, and is of strategic significance in promoting Hong Kong's development as a leading cryptocurrency hub in Asia.
💰Zodia Markets secures $18.25 million Series A funding from Circle Ventures to expand stablecoin payment infrastructure
Quick takeaways
Zodia Markets has completed a $18.25 million Series A funding round led by Pharsalus Capital, with participation from Circle Ventures and others. The funds will be used to accelerate international expansion and develop stablecoin payment solutions.
The company, which has been backed by SC Ventures, the innovation arm of Standard Chartered Bank, and OSL Group, Asia’s leading digital asset firm, since its founding in 2021, has established a leading position in cross-border stablecoin flows;
Zodia Markets currently supports over 20 fiat currencies and more than 70 digital assets (including US dollars and non-US dollar stablecoins), focusing on providing real-time wholesale trading, settlement and cross-border capital flow services to institutions.
Why it matters
This financing highlights the trend of deep integration between traditional banking and crypto infrastructure. Zodia Markets, a digital asset platform backed by Standard Chartered Bank, is reinventing inter-institutional cross-border payments through stablecoins. Circle Ventures' participation further validates its strategic position in institutional-grade stablecoin infrastructure. The platform, which combines traditional foreign exchange capital flows with real-time stablecoin settlement, represents a significant shift in how global banks are integrating stablecoins into their core payment infrastructure, driving the digital transformation of wholesale banking.
💰Stable secures $28 million in seed funding to develop a USDT-based payment blockchain
Quick takeaways
Stable completed a $28 million seed round of financing, led by Bitfinex and Hack VC, with participation from Franklin Templeton, Castle Island Ventures, and KuCoin Ventures;
The blockchain project uses USDT as a fuel token, aiming to achieve a fast, low-cost and stable digital payment infrastructure;
Stable joins a growing stablecoin blockchain competition that already includes projects like Plasma, which recently raised $373 million for its stablecoin network.
Why it matters
The stablecoin market has grown to $273 billion, dominated by USDT and USDC. Demand for blockchain infrastructure optimized for stablecoin payments is growing. Stable, backed by angel investors including Tether CEO Paolo Ardoino, demonstrates strong industry interest in blockchain solutions designed specifically for stablecoin transactions. The investment from traditional financial institution Franklin Templeton demonstrates the accelerating flow of institutional capital into the stablecoin infrastructure space, which will further boost the adoption of stablecoins in global payment and settlement systems.
Regulatory compliance
🏛️Hong Kong's stablecoin regulation has come into effect, and dozens of institutions have indicated they will apply for licenses
Quick takeaways
The Stablecoin Regulations officially came into effect on August 1st, and the HKMA will open the application window until September 30th. The first license is expected to be issued early next year.
The CEO of Standard Chartered Hong Kong and Greater China and North Asia confirmed that the group is studying documents and exploring application scenarios, with the goal of submitting an application for a stablecoin license as soon as possible;
According to incomplete statistics, dozens of institutions have stated that they will apply for licenses, including JD CoinChain Technology, Yuanbi Innovation, Standard Chartered Bank, Anmi Group, and Hong Kong Telecom.
At the same time, more local banks, technology companies and Web3 teams are making further preparations around clearing systems, custody mechanisms and payment interfaces.
Why it matters
The Hong Kong Monetary Authority emphasized that the threshold for stablecoin licensing is high, and only a few licenses will be granted initially. Licensed institutions must meet three key requirements: compliance, specificity, and sustainability. This move marks Hong Kong's transition from sandbox testing to a formal regulatory system, which will attract traditional banks, technology companies, and Web3 teams to develop stablecoin businesses. This is of strategic significance for Hong Kong's continued advancement as an international financial center.
🏛️US SEC Chairman Atkins: "Most crypto assets are not securities"
Quick takeaways
SEC Chairman Paul Atkins announced the launch of "Project Crypto," an initiative aimed at rapidly implementing new crypto policies urged by President Donald Trump by modernizing securities rules to accommodate crypto assets, a clear rebuttal to the views of former SEC Chairman Gensler.
Atkins emphasized that “most crypto assets are not securities” and instructed SEC staff to draft clear and simple rules for the distribution, custody, and trading of crypto assets;
The SEC will provide "tailored disclosure requirements, exemptions, and safe harbors" for crypto-securities, including ICOs, airdrops, and network rewards, and support self-hosted wallets and "super apps" one-stop services.
Why it matters
This marks a significant shift in US crypto regulatory philosophy. Atkins explicitly supports Trump's goal of establishing a "Golden Age of Crypto," which will attract crypto businesses that have previously fled the US. The new SEC policy will allow broker-dealers to offer multi-asset trading on a single platform without requiring multiple licenses, while also providing protections for software developers. This significant policy shift heralds a fundamental shift in the US crypto regulatory landscape, potentially bringing certainty to the market and fostering innovation.
🏛️Germany's AllUnity launches the first euro stablecoin EURAU under BaFin supervision
Quick takeaways
EURAU, launched by AllUnity, a joint venture between DWS, Galaxy, and Flow Traders, became Germany's first euro-denominated stablecoin compliant with MiCAR regulations and received an e-money license from the German Financial Supervisory Authority, BaFin;
EURAU is issued as an Ethereum ERC-20 token, with the European Banking Union as the reserve custodian, and is primarily aimed at financial institutions, fintech companies and corporate clients that require regulated, instant cross-border euro payments;
The stablecoin will be listed on Bullish Europe, a digital asset exchange regulated by BaFin. The first trading pairs include BTC/EURAU and USDC/EURAU, with market making services provided by Flow Traders.
Why it matters
The launch of EURAU marks a significant milestone in Europe's regulated stablecoin market. Backed by prominent institutions such as BitGo, Metzler Bank, and Fireblocks, this stablecoin exemplifies the broader trend of embedding regulatory-compliant stablecoins into Europe's financial infrastructure. AllUnity CEO Alexander Höptner hailed this as a significant step toward "financial sovereignty" in a digital Europe, demonstrating that the EU is establishing a euro-based digital payment system, independent of the US dollar stablecoin, through the MiCAR framework, providing European financial institutions with payment solutions compliant with local regulations.
🏛️The Bank of Korea has established a crypto asset department to respond to the development of local stablecoins.
Quick takeaways
The Bank of Korea (BOK) has established a new virtual asset department under the Financial Payment Systems Bureau to monitor the crypto market and lead internal discussions on the Korean won stablecoin.
The central bank also renamed the "Digital Currency Research Team" to the "Digital Currency Team," indicating a shift from theoretical exploration to more active digital currency practice.
South Korea's newly elected President Lee Jae-myung has pledged to promote the development of the local currency stablecoin market to prevent capital outflow, and ruling party lawmakers have submitted a bill to establish a regulatory framework for the Korean won stablecoin.
Why it matters
The Bank of Korea's move signals a global shift in central bank attitudes toward stablecoins, from caution to active participation. Against the backdrop of the US government's support for dollar-denominated stablecoins, the South Korean government and financial institutions are moving swiftly to prevent capital outflows and dollarization. South Korea's decision to suspend its CBDC project and focus on stablecoins reflects the Asian financial hub's pursuit of a balance between central bank digital currencies and private-sector stablecoins, which will accelerate the formation of a stablecoin ecosystem in Asia.
