Welcome to the 19th issue of the Stablecoin Weekly Report.

Since the GENIUS Act came into effect, the market reaction has been unexpected:

· USDT supply unexpectedly surged by billions of dollars, while USDC, which focuses on compliance, saw limited short-term growth.

· Under the "stablecoin interest ban", yield-generating stablecoins quickly expanded through regulatory loopholes: USDe supply surged, Coinbase and PayPal packaged returns as "rewards", Coinbase even launched an "embedded rewards SDK", and Anchorage with Ethena Labs built institutional-level compliant yield channels based on BlackRock BUIDL and other tokenized assets.

· Privacy has become a new focus: ZKP and DID can provide "compliance verification without information disclosure" solutions for institutional payments, alleviating privacy pain points for enterprises entering the stablecoin market.

Market Overview and Growth Highlights

Total stablecoin market cap reached $269.696b, with a week-on-week growth of $2.606b. In terms of market landscape, USDT continues to dominate, accounting for 61.25%; USDC ranks second, with a market cap of $64.502b, accounting for 23.92%.

Blockchain Network Distribution

Top 3 Stablecoin Market Cap Networks:

· Ethereum: $135.786b

· TRON: $82.995b

· Solana: $11.431b

Top 3 Networks with Fastest Weekly Growth:

· Berachain: +96.57% (USDT proportion 43.15%)

· XRPL: +49.84% (RLUSD proportion 49.11%)

· Sei: +47.95% (USDC proportion 85.96%)

Data from defillama

US Bank Secrecy Act and Stablecoin Payment Privacy Requirements

After the US stablecoin bill was implemented, privacy became the next focus for regulation and the market.

As the stablecoin market cap breaks through $270 billion and rapidly enters the mainstream payment system, the "complete transparency" on-chain has begun to expose new problems. Since every transaction on public chains is permanently visible, for enterprises, it's equivalent to exposing their complete financial history, supply chain information, and salary structure. For retail investors, this might just be an annoyance, but for enterprises and institutions, this is an unacceptable hard threshold. This means your competitors can track every payment in real-time, and if this issue is not resolved, the penetration speed of stablecoins in commercial payments and institutional settlements will be severely limited.

· This report reveals a disconnect between the actual application and market promotion of DeFi and tokenization. Despite continuous infrastructure improvements and the emergence of KYC-compliant vaults and permissioned lending pools, traditional financial institutions remain cautious. The report points out that the traditional financial system is evolving towards faster and lower-cost settlement and payment methods driven by financial technology, which may undermine the necessity of blockchain systems, indicating that the crypto industry needs to develop more compelling institutional-level application scenarios.

Remitly Enables Stablecoin Technology to Optimize Cross-Border Payment Services, to Launch Multi-Currency Digital Wallet

Key Highlights:

· Remitly will launch a multi-currency "Remitly Wallet" in September, supporting fiat and stablecoin storage, specifically targeting users in countries with high inflation or currency volatility

· The company is partnering with Stripe's Bridge to provide stablecoin receiving options for users in over 170 countries, expanding its existing fiat payment network

· Remitly has integrated US dollar stablecoins like USDC into its internal financial operations, enabling round-the-clock fund flow and reducing pre-funding requirements, improving capital efficiency

Why It Matters:

· This marks mainstream cross-border payment companies beginning to widely apply stablecoin technology. By integrating stablecoins into core business, Remitly not only provides a value preservation solution for users in high-inflation regions but also addresses liquidity challenges faced by traditional remittance systems. This innovative model will accelerate stablecoin application in actual payment scenarios, offering more efficient and low-cost solutions for hundreds of millions globally relying on cross-border financial services, especially in markets with limited financial infrastructure.

Tether CEO: 40% of Blockchain Fees Originate from USDT Transfers

Key Highlights:

· Tether CEO Paolo Ardoino tweeted that 40% of network blockchain fees are used for USDT transfers, covering 9 major public chains

· Hundreds of millions of users in emerging markets use USDT daily to hedge against local currency depreciation and inflation risks, becoming one of the most active blockchain applications globally

· In crypto context, "trading" typically refers to buying, selling, exchanging, and arbitrage activities on exchanges. These activities usually occur within exchange internal systems or liquidity pools, not requiring independent on-chain transfer fees each time. When a USDT transfer occurs on-chain and generates fees, it usually means funds are moving between different addresses or wallets. Such scenarios can be classified as "actual usage" rather than pure speculation.

Why It Matters:

· This data highlights USDT's dominance in the blockchain ecosystem, far surpassing other use cases. Paolo predicts future blockchain competition will focus on gas fee optimization and USDT fee payment, reflecting how stablecoins have evolved from mere trading mediums to critical solutions for real-world financial needs, especially in economically unstable regions. This phenomenon also proves blockchain technology is making substantial contributions to financial inclusivity.

· The proposal was quickly deleted, and Aave Chan Initiative founder Marc Zeller stated that the timing of publication was "too early," but confirmed the authenticity of the proposal

Why it matters:

· This is another tech giant entering the stablecoin market after PayPal and Robinhood. As one of the largest crypto wallets, MetaMask's collaboration with top payment processor Stripe to launch a stablecoin may accelerate the convergence of stablecoins in Web3 and traditional payment fields.

Coinbase Launches Embedded Wallet SDK to Simplify Web3 User Onboarding for Developers

Key Highlights:

· Coinbase added Embedded Wallets SDK to its Developer Platform (CDP), allowing developers to seamlessly integrate self-custodial wallet functionality into applications

· The SDK includes built-in features such as cryptocurrency deposit channels, token swapping, and 4.1% annual yield on USDC, aiming to eliminate the trade-off between user experience and self-custody risks

· Unlike traditional wallets, users can log in directly via email, SMS, or OAuth without browser extensions or memorizing seed phrases, significantly simplifying the onboarding experience

Why it matters:

· This move reflects Coinbase's key strategic layout in Web3 infrastructure, promoting large-scale application adoption by lowering development barriers. The new tool runs on the same system supporting Coinbase DEX, providing enterprise-level security while addressing one of the crypto industry's biggest pain points: complex user onboarding. This aligns with Coinbase's overall strategy of reimagining wallets as super apps, further consolidating its position as a bridge between crypto and traditional internet

US Digital Bank Slash Launches Stripe Bridge-Issued Stablecoin, Supporting Non-US Businesses in Easily Sending and Receiving USD and Stablecoins

Key Highlights:

· San Francisco digital bank Slash launches USDSL, a US dollar stablecoin issued by Stripe's Bridge platform

· The stablecoin aims to provide enterprises with US dollar payment capabilities, enabling global payments without a US bank account, reducing settlement time and foreign exchange fees

· This occurs as the GENIUS bill is signed into law, providing a regulatory framework for the US stablecoin industry and issuers

Why it matters:

· As the stablecoin regulatory framework becomes clearer, fintech companies are accelerating their entry into this field. Slash's issuance of a stablecoin using Stripe's Bridge platform represents a new trend of traditional finance and crypto technology integration, potentially solving efficiency and cost issues in cross-border payments. This also indicates that stablecoin applications in commercial payments are moving from concept to practice after a clear regulatory environment.

Trump-Associated Project World Liberty Launches USD1 Stablecoin Loyalty Program

Key Highlights:

· Trump family-backed DeFi project World Liberty Financial announces the launch of a USD1 points program, similar to airline miles, initially collaborating with exchanges like Gate

· Users can earn points by trading USD1 trading pairs, holding USD1 balance, staking USD1 for yields, using it in approved DeFi protocols, and interacting with the WLFI mobile app

· The USD1 stablecoin, launched by World Liberty Financial in April, claims to be fully backed by short-term US Treasury bills, US dollar deposits, and other cash equivalents, issued by BitGo Trust Company

Why it matters:

· With Trump and his three sons serving as ambassadors or advocates for World Liberty Financial, this political-business connection raises potential conflict of interest concerns. The USD1 points program combining stablecoins with loyalty rewards represents an innovative approach for stablecoin projects to seek user stickiness in an increasingly competitive environment, also reflecting a trend of closer interaction between government and the crypto industry.

JPMorgan Launches On-Chain Intraday Repo Solution Based on Kinexys Blockchain

Key Highlights:

· JPMorgan, in collaboration with HQLA-X and Ownera, introduces a "cross-digital ledger solution" allowing repo traders to exchange funds and securities using blockchain deposit accounts on the Kinexys network

· The tool supports full lifecycle management of repo transactions, from execution to collateral management and settlement, with precise minute-level settlement and maturity times

· The solution's first phase can handle daily trading volumes up to $1 billion, designed as an industry-level platform supporting future expansion to multiple trading venues, collateral sources, and digital cash instruments

Why it matters:

· JPMorgan is leading blockchain innovation in traditional banking, with Kinexys (formerly Onyx) becoming the core of its digital asset strategy. The platform is poised to support various digital assets like deposit tokens, stablecoins, and central bank digital currencies, reducing market fragmentation. With JPMorgan launching quasi-stablecoin asset JPMD and establishing a partnership with Coinbase, this move marks Wall Street's recognition of blockchain technology shifting from experimentation to practical application, setting new standards for institutional-grade digital asset infrastructure.

Regulatory Compliance

Paxos Fined $48.5 Million by New York Regulator for Binance BUSD Partnership

Key Highlights:

· Paxos Trust Company will pay a $26.5 million fine to the New York Department of Financial Services (NYDFS) and invest an additional $22 million in improving compliance programs

· Regulators found that Paxos failed to conduct proper due diligence on its partner when issuing BUSD stablecoin with Binance in 2018 and had deficient anti-money laundering procedures

· Paxos accepted Binance's claim of "fully restricting US users" without independent verification, leading to NYDFS ordering Paxos to stop minting BUSD in 2023

Why it matters:

· This penalty demonstrates regulators' strict scrutiny of stablecoin issuers' partnerships, especially with offshore exchanges. Although Paxos claims these issues were discovered and fully remedied two and a half years ago, this case sounds an alarm for the entire stablecoin industry, reminding issuers to conduct rigorous due diligence on partners and establish robust compliance frameworks. With the implementation of the Genius Bill and stablecoin market expansion, regulatory oversight of stablecoin issuers will become more stringent, potentially exposing those partnering with problematic exchanges to greater legal risks.

Trump Signs Executive Order to Stop Banks' "Unfair Treatment" of Crypto Companies

Key Highlights:

· President Trump signed an executive order prohibiting federal regulators from imposing additional regulation on banks serving crypto enterprises based on "reputation risk"

· The order aims to end "Operation Choke Point 2.0," preventing banks from refusing services to crypto companies based on political reasons or subjective concerns about high-risk industries

· The Federal Reserve, OCC, and FDIC have promised not to consider "reputation risk" factors when assessing bank client relationships, with support from House Financial Services Committee Chair Hill and Senator Lummis

Why it matters:

· This executive order fundamentally removes subjective regulatory tools, forcing banks to make decisions based on actual legal and financial risks rather than vague reputation considerations. It clearly establishes the legitimate status of the crypto industry, ensuring equal access to banking services. Against the backdrop of government actively adjusting regulatory frameworks, this move will reshape the relationship between banks and crypto companies, promoting deeper integration of traditional finance and digital asset industries.

Capital Deployment

Tether Acquires Stake in MiCA-Licensed Exchange Bit2Me, Leads $32.7 Million Funding Round

Key Highlights:

· Stablecoin issuer Tether acquires a minority stake in Spanish crypto exchange Bit2Me and leads a €30 million ($32.7 million) funding round, with the transaction to be completed in the coming weeks

· Bit2Me is the first Spanish exchange licensed under the EU's MiCA framework, with a Crypto Asset Service Provider (CASP) license allowing operations across 27 EU member states

· This investment will fund Bit2Me's expansion in the EU and Latin America (starting with Argentina), with the exchange founded in 2014 and currently serving 1.2 million users

Why It Matters:

· This is a strategic move by Tether to re-establish its position in the European market after MiCA regulatory tightening. As multiple exchanges have delisted or lowered USDT's priority over the past year, Tether is creating compliant market channels for its stablecoin by investing in licensed exchanges. This demonstrates how Tether leverages its massive profits (a record $4.9 billion in the last quarter) to make strategic investments and expand its business across different global regulatory environments.

Ripple to Acquire Stablecoin Payment Platform Rail for $200 Million

Key Highlights:

· Ripple announces the acquisition of stablecoin payment platform Rail for $200 million, expected to be completed in the fourth quarter of 2025

· Rail is projected to process over 10% of global stablecoin payments in 2025, with a global market size of approximately $36 billion

· This acquisition will enable Ripple to offer enterprise-level stablecoin payment solutions, supporting multiple digital asset payments including RLUSD and XRP, allowing customers to use deposit and withdrawal services without holding cryptocurrencies

Why It Matters:

· This is another major investment by Ripple following the $1.25 billion acquisition of crypto-friendly broker Hidden Road in April this year, marking the company's accelerated expansion into the stablecoin market. As Ripple actively applies for MiCA licenses in the EU and receives regulatory approval for RLUSD in the Dubai International Financial Centre, the company is expanding its stablecoin business globally. This move will transform Ripple from a primarily cross-border payment solution provider to a comprehensive financial services platform, also reflecting the intensifying competition in institutional-level stablecoin services.

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