Google is also entering the payment chain, and the new model of stablecoin as a service (STaaS) is emerging.

As stablecoins continue to dominate the market, the center of gravity of the value chain is shifting—from issuance to distribution. A clear trend is the rise of the white-label model, where front-end platforms focus on traffic and users, while professional issuers provide underlying reserves, auditing, and compliance services. This is known as "stablecoin as a service" (STaaS).

This means that as the issuance threshold lowers, differentiation will rely more on distribution capabilities and branding rather than the trustworthiness of the assets themselves. The future market landscape may also shift accordingly, from a monopoly dominated by a few giants to a diversified ecosystem of mid-sized companies (US$10-25 billion).

A similar logic is occurring within card issuers and banks. Card issuance is becoming increasingly API-based and modularized. "Issuance as a Service" allows more businesses to quickly integrate payment processes, and profit models are shifting from interest and annual fees to data accumulation and programmability.

Payment blockchains are constrained by the "Blockchain Trilemma" of privacy, compliance, and performance. While Google's GCUL meets the needs of financial institutions, it sacrifices openness. Coupled with potential conflicts of interest between advertising and payment networks, its ability to become a public infrastructure for stablecoin payments remains questionable.

Market Overview and Growth Highlights

The total market capitalization of stablecoins reached approximately $282.84 billion. USDT maintained its dominant position, accounting for 59.55% of the market, while USDC ranked second with a market capitalization of $70.375 billion (approximately $70.375 billion), accounting for 24.88%.

Blockchain network distribution

The top three stablecoin networks by market capitalization are:

1. Ethereum: $148.551 billion ($148.6 billion)
2. Tron: $81.617 billion (US$81.6 billion)
3. Solana: $12.178 billion ($12.2 billion)

Top 3 fastest growing networks per week:

1. M By M^0 (M) ：+11.32%
2. Dai (DAI): +9.99%
3. USD Coin (USDC): +5.57%

Decoupling branding and issuance: The STaaS future of stablecoins

As stablecoin issuance becomes increasingly commoditized, the focus of the value chain has shifted from stablecoin issuance to stablecoin distribution. If the first half of the game was dominated by institutions, with reserves and minting, the second half hinges on who can deliver stablecoins to more users and merchants.

As regulatory compliance and technological maturity mature, the application of stablecoins has expanded beyond exchanges to include corporate treasury, capital markets, and consumer networks. Card schemes and issuing banks are promoting their integration into the retail payment system. As stablecoins transition from being a means of withdrawal to long-term circulation within the network, their lifecycle has been significantly extended, potentially even creating a bridge between the on-chain and off-chain economies.

In commercial competition, distribution capabilities are often more important than the product itself, and stablecoins are no exception. The success of stablecoins hinges on widespread adoption, and the white-label model is gaining popularity. This allows platforms to leverage stablecoin capabilities within regulatory frameworks, optimizing payment and clearing processes without having to build their own reserves and compliance systems.

Case studies like Metamask and Bridge, and PayPal and Paxos demonstrate that user relationships and usage scenarios are managed by the platforms, while reserve management and compliance audits are outsourced to the issuer. Even a giant like PayPal can distribute interest-bearing stablecoins without directly issuing them. This decoupling of branding and issuance allows stablecoin functionality to be embedded in a broader payment and settlement process as a service.

In traditional finance, banks abstract capabilities such as deposits, loans, and card issuance into APIs, which is called BaaS (Banking-as-a-Service). In the era of stablecoins, this logic has evolved into STaaS (Stablecoin-as-a-Service), which abstracts issuance, reserve management, auditing, and compliance into underlying services. Professional institutions will take on the complex links, allowing the platform to focus on users and scenarios.

In the evolution of stablecoin infrastructure, in addition to "Issuance-as-a-Service," we've also seen a new model emerge: Card Issuing-as-a-Service. The traditional four-party model, relying on interest and interchange fees for profitability, is becoming increasingly ineffective in the face of on-chain payments. Banks are beginning to modularize licenses, deposits, and credit lines, exporting them to fintech companies via APIs. These, combined with the programmability of stablecoins, are being deeply embedded in B2B processes like payroll payments and freelancer settlements.

The advantages of this model no longer come from credit expansion, but rather from migration barriers, data accumulation, and programmability. When payments are tightly coupled with business operations, the stablecoin infrastructure possesses greater resilience and growth potential, thereby building a new moat.

Google Cloud develops permissioned payment chain GCUL for financial institutions

According to Rich Widmann, head of Google Cloud Web3 business strategy, on LinkedIn, Google is developing a permissioned blockchain called Universal Ledger (GCUL) for financial institutions, supporting native on-chain banking funds, cross-currency settlement and programmable payments.

Google's core premise for entering the blockchain industry is that banks must transform in the face of the digital currency wave, upgrading from traditional clearing nodes to on-chain asset issuers and distributors. GCUL provides built-in compliance, Python smart contracts, and API access, enabling banks to migrate deposit, securities, and clearing operations to the blockchain and proactively control capital flows. The Google Cloud article "Beyond Stablecoins: The Evolution of Digital Currency" states: "Fragmentation and inefficient settlement in the payment system could result in $2.8 trillion in losses by 2030, and the growth of stablecoins has validated market demand."

Unlike Stripe's closed-loop ecosystem, Google aims to provide a neutral underlying infrastructure. It has already launched a tokenization pilot with the Chicago Mercantile Exchange (CME), targeting institutions that don't have their own blockchains but want to enter the crypto payments market. As Rich Widmann, Head of Web3 at Google Cloud, stated, "Tether won't use Circle's blockchain, and Adyen may not use Stripe's, but any institution can develop payment services on GCUL." Google hopes to attract multiple parties through its "unbound" infrastructure.

However, GCUL's permissioned approach meets the rigid needs of financial institutions for privacy, compliance, and throughput, but it also sacrifices the openness of a public blockchain. Given Google's existing interests in cloud computing, advertising, search, and browsers, the market is concerned that it may struggle to maintain complete neutrality between advertising and payment networks. This raises questions about GCUL's ability to serve as a "public underlying layer" for stablecoin payments.

What is certain, however, is that the previous assumption that public blockchains like Ethereum and Solana will capture the majority of value may no longer hold true. If the next wave of $2 trillion in stablecoin funds flows to branded chains like Stripe's Tempo, Circle's Arc, or Google's GCUL, then the value capture of public chains like Ethereum (ETH) and Solana (SOL) will be severely challenged.

Regulatory compliance

Japan's Monex Group is considering issuing a yen-denominated stablecoin, but the company's chairman warns that "if we don't, we'll be left behind."

Quick takeaways

• Monex Group, a Tokyo-listed financial services company, is considering issuing a Japanese yen stablecoin. Chairman Oki Matsumoto said, "Issuing a stablecoin requires a lot of infrastructure and capital, but if you don't get involved, you will be left behind."
• The stablecoin project is backed by assets such as Japanese government bonds and can be exchanged 1:1 for Japanese yen. It will be mainly used for international remittances and corporate settlements and will be promoted through the group's Coincheck exchange and Monex securities brokerage business.
• Matsumoto revealed that Monex is considering acquiring European crypto-related companies, with final negotiations underway and an announcement possible "within a few days," which would expand its influence in the Western market.

Why it matters

• Monex Group's consideration of issuing a yen-denominated stablecoin signals a rapidly easing of Japan's crypto regulatory environment. Japan's Financial Services Agency (FSA) plans to approve the issuance of a yen-denominated stablecoin as early as this fall, marking the first time Japan has permitted a digital currency pegged to its domestic fiat currency. Following the lifting of the ban on foreign stablecoins in 2023 and the approval of USDC for use in Japan in March of this year, the entry of financial giants into the stablecoin market will accelerate Japan's competitiveness in the Asian digital asset sector and provide a digital alternative for the yen in international settlements.

Circle, Paxos, and Bluprynt are piloting provenance verification technology to explore traceability and authenticity verification for stablecoin payments.

Quick takeaways

• Stablecoin giants Circle and Paxos are collaborating with fintech startup Bluprynt to pilot "provenance upfront" technology, which can prevent stablecoin counterfeiting and instantly verify the identity of the issuer.
• This technology uses cryptography and blockchain to provide token traceability, allowing regulators and investors to confirm whether the token is issued by the claimed issuer, effectively preventing counterfeit tokens and impersonation attacks;
• As the GENIUS Act drives an increase in stablecoin issuers, verifying the "real identity" of tokens has become a key security issue. Blockchain analysis company Chainalysis has listed counterfeiting and impersonation as common risks of stablecoins.

Why it matters

• This technology transforms compliance into a technical product rather than a mere legal document, signaling the maturation of the digital asset industry. As stablecoin adoption expands, trust mechanisms based on technology, rather than branding, become crucial. This innovation paves the way for widespread stablecoin adoption while simultaneously meeting regulatory requirements, mitigating systemic risk, and providing a reliable verification tool for auditors, law enforcement agencies, and investors.

CFTC: Crypto companies leaving the US can return to the US market as "foreign exchanges"

Quick takeaways

• The U.S. Commodity Futures Trading Commission (CFTC) issued an advisory on Thursday, stating that crypto companies leaving the United States can directly serve U.S. customers by registering as a "foreign exchange" (FBOT);
• Acting Chairwoman Caroline Pham described the move as part of a "Crypto Sprint" initiative aimed at providing "a path back to the U.S. market for American companies that have been forced to set up exchanges abroad."
• The CFTC is receiving an increasing number of FBOT registration applications, clarifying that eligible foreign firms do not need to register as a U.S. Designated Contract Market (DCM), but must be strictly regulated in their home countries.

Why it matters

• This policy "reminder" reflects the CFTC's crypto-friendly shift under the Trump administration. Amid regulatory uncertainty that has led several exchanges to withdraw from the US market, the CFTC is actively rebuilding bridges, both meeting regulatory requirements and providing more trading options for American consumers. Pham called this move "another delivery for President Trump," suggesting it is part of a broader deregulation effort. With the upcoming resumption of confirmation for former CFTC Commissioner Brian Quintenz, Trump's nominee, and Commissioner Johnson's departure next week, the CFTC's crypto-friendly stance is likely to intensify, creating a clearer path for international crypto exchage to return to the US market.

New Product Express

Aave Launches Horizon, a RWA Marketplace Connecting Institutional-Grade Tokenized Assets with DeFi

Quick takeaways

• Aave Labs launched the Horizon marketplace, bringing together leading institutions such as VanEck, Circle, Ripple, WisdomTree, Superstate, and Centrifuge to connect institutional-grade tokenized assets with DeFi on Ethereum.
• The first batch of collateral to be launched includes Superstate’s USCC and USTB, Centrifuge’s JRTSY and JAAA, and Circle’s USYC will soon join; stablecoin supply options include USDC, RLUSD and GHO;
• Horizon leverages Chainlink SmartData technology (with NAVLink as the first deployment) to provide accurate net asset value of tokenized physical asset collateral, enabling instant over-collateralized stablecoin loans within compliant DeFi frameworks.

Why it matters

• Horizon represents the convergence of DeFi and traditional finance. By integrating institutional-grade assets into a decentralized lending protocol, it opens the door to trillions of dollars in DeFi liquidity for real assets. The platform utilizes an institutional-grade compliance framework and supports a permissionless stablecoin offering, meeting the regulatory requirements of institutional investors while preserving the core open nature of DeFi. Llama Risk and Chaos Labs provide risk analysis support to ensure platform security. This marks the official entry of DeFi into the institutional market, creating a new paradigm for on-chain liquidity and capital efficiency for traditional assets.

Anchorage Digital establishes venture capital arm to support early-stage on-chain protocols and becomes a federally chartered stablecoin issuer

Quick takeaways

• Crypto custody unicorn Anchorage Digital launched its venture capital arm, Anchorage Digital Ventures, which focuses on investing in early-stage on-chain protocols, with a particular focus on infrastructure projects such as Bitcoin DeFi, physical assets, and decentralized identity.
• Previously, Anchorage Digital Bank announced that it had become the first federally chartered stablecoin issuer, providing a "one-stop" solution that allows institutions to launch their own branded stablecoins without having to deal with technical complexities;
• The platform integrates capital investment, strategic guidance and institutional docking channels to provide entrepreneurial teams with full-process support from product design to market access, while promising unlimited issuance capabilities and instant network access.

Why it matters

• Anchorage's strategy demonstrates the trend of crypto infrastructure companies expanding into the entire financial services industry chain. As the first crypto institution to receive a federal banking charter in the United States, its GENIUS compliant stablecoin issuance service creates synergies with its venture capital arm: it incubates innovative projects while providing them with compliant channels and institutional-grade application scenarios. This business model will accelerate institutional adoption of blockchain technology while ensuring that emerging protocols are designed to meet regulatory expectations from the outset.

Ant International and Standard Chartered Bank test bank-to-wallet payment solution

Quick takeaways

• Ant International and Standard Chartered Bank are piloting a bank-to-digital wallet payment solution based on the Swift system and have completed the first batch of transaction tests using the ISO 20022 financial messaging standard;
• The solution leverages Ant's Alipay+ global wallet gateway service, connecting to over 11,500 financial institutions in over 200 countries and regions covered by the Swift network, and connecting to 1.7 billion user accounts across 36 global digital wallets within the Alipay+ ecosystem;
• PYMNTS Intelligence research found that 42% of consumers ranked digital wallets as their preferred method for cross-border remittances, surpassing traditional bank account transfers and remittance services. This proportion was even higher among US consumers, at 44%.

Why it matters

• This collaboration reflects the trend toward digital wallets in cross-border payments. The integration of the Swift system with Alipay+ breaks down the barriers between traditional finance and emerging payment networks, providing banks with a strategy to address the challenges posed by fintech. Research shows that 62% of US and UK banks plan to innovate cross-border payments through partnerships with fintech companies. This integration will reshape the global payments landscape, particularly in fast-growing markets in Asia, providing consumers and businesses with faster and more flexible international payment experiences.

Tether will issue Bitcoin native USDT stablecoin on RGB

Quick takeaways

• Tether announced plans to issue USDT on the RGB protocol, a smart contract and asset issuance protocol pegged to Bitcoin and compatible with the Lightning Network. This will expand native support for the world's largest stablecoin on the Bitcoin network.
• RGB allows issuers to mint and transfer assets that are cryptographically anchored to Bitcoin transactions but verified off-chain, reducing on-chain data usage while inheriting Bitcoin's security guarantees, achieving near-instant settlement on the Lightning Network, and improving privacy;
• USDT currently circulates mainly on the Tron and Ethereum networks, with a total supply exceeding $167 billion. Tether is gradually phasing out less scalable chains such as Omni, EOS, and Algorand, and plans to completely shut down support for these networks by September.

Why it matters

• This integration marks a strategic move by Tether to deepen its investment in the Bitcoin ecosystem. The company already holds over 100,000 Bitcoins and has invested $2 billion in 15 mining farms in Latin America, aiming to become the world's largest Bitcoin miner by the end of 2025. Providing a Bitcoin-native stablecoin payment channel through the RGB protocol will enable USDT to seamlessly integrate with Lightning Network wallets, merchant tools, and exchanges, providing users with a faster, cheaper, and more private transaction experience. This also aligns with Tether's broader strategy of expanding into regulated markets, including its recent investment in Spanish exchange Bit2Me to establish a European presence. This move strengthens the deep integration of stablecoins into Bitcoin infrastructure, providing a more efficient alternative for cross-border payments and remittances.

Market adoption

Vercel, a cloud development platform, now accepts USDC for its AI front-end tool v0.

Quick takeaways

• Vercel, a US-based cloud development platform company, has started accepting USDC stablecoins to purchase v0 credits for its AI front-end development tool v0.
• v0 is positioned as a full-stack vibe coding platform, created by Vercel, a website deployment and front-end development service provider;
• This move marks the beginning of the exploration of crypto payment options in the development tool field, providing developers with more payment channels.

Why it matters

• The acceptance of USDC for development tool subscription services reflects the expansion of stablecoins beyond pure crypto applications into SaaS and developer services. As a leading front-end development company, Vercel's support for USDC is likely to drive adoption of crypto payments among more tech companies while also providing international developers with an alternative to traditional payment methods. This trend demonstrates the gradual integration of stablecoins into software-as-a-service business models, lowering the barrier to cross-border payments.

Mastercard and Circle partner to enable stablecoin settlements in the EEMEA region

Quick takeaways

• Mastercard and Circle have partnered to allow acquirers in Eastern Europe, the Middle East, and Africa (EEMEA) to use USDC and EURC stablecoins for settlements and payment settlements with merchants, facilitating digital trade in emerging markets.
• Arab Financial Services and Eazy Financial Services are the first institutions to adopt the solution, stating that the new functionality reduces friction in high-volume settlements, providing a faster and more secure payment solution;
• Circle reported that as of June 30, USDC circulation surged 90% year-on-year to $61.3 billion, and by August 10, it had increased another 6.4% to $65.2 billion, accounting for 28% of the fiat-backed stablecoin market, an increase of 595 basis points year-on-year.

Why it matters

• This collaboration marks the official entry of stablecoin settlement into the core infrastructure of the global payment network. As a traditional payments giant, Mastercard is applying its security and compliance expertise to the stablecoin space, providing institutional-grade trust in USDC and EURC. This integration not only expands the two companies' existing collaboration on crypto card solutions but also positions stablecoins as a fundamental tool for everyday financial activities. As demand for US dollar and euro payments grows in emerging markets such as the Middle East and Africa, this solution will streamline cross-border transactions and create new opportunities for financial inclusion and business development in these regions.

Financial giant Finastra introduces USDC to settle $5 trillion in global cross-border payments

Quick takeaways

• London-based fintech provider Finastra announced that it will connect its payment hub to Circle’s USDC stablecoin, enabling banks to settle cross-border transfers in USDC.
• The integration will begin with Finastra’s Global PAYplus (GPP), which processes over $5 trillion in cross-border payment traffic daily, providing 24/7, near-instant settlement services via blockchain;
• By enabling USDC settlement while maintaining fiat currency instructions, banks can reduce their reliance on high-cost, slow-processing correspondent banking networks and innovate without having to build independent payment processing infrastructure.

Why it matters

• This move signals the expansion of stablecoins from the crypto industry into the mainstream financial system. With payment giants like Stripe and PayPal already building their own stablecoin infrastructure, Finastra's integration of USDC will accelerate institutional adoption. Coinbase predicts the stablecoin market will grow from $270 billion today to $1.2 trillion by 2028. This integration of financial infrastructure will drive the convergence of blockchain technology and the traditional banking system, revolutionizing international payments.

Venezuela's inflation and currency collapse drive cryptocurrency adoption

Quick takeaways

• From small family-run shops to large retail chains, merchants across Venezuela are accepting cryptocurrency payments through platforms like Binance and Airtm. Some companies are even paying their employees with stablecoins, and universities are beginning to offer courses in digital assets.
• Venezuela ranked 13th globally in the Chainalysis 2024 Cryptocurrency Adoption Index, with usage surging 110% in a single year. With the bolivar currency depreciating by over 70% since the government stopped intervening in October last year, and inflation reaching 229% in May, citizens are turning to crypto assets for a safe haven.
• Cryptocurrency remittances have become a vital lifeline for Venezuelans, with digital assets accounting for 9% (approximately $461 million) of the $5.4 billion in total remittances in 2023, as families increasingly rely on cryptocurrencies rather than traditional high-fee, high-delay services such as Western Union.

Why it matters

• The Venezuelan case demonstrates the practical value of cryptocurrencies in an environment of extreme inflation and currency collapse. Faced with a currency crisis, foreign exchange shortages, and difficulties opening bank accounts, ordinary citizens were forced to seek alternative financial instruments to protect their assets. Despite obstacles such as US sanctions and connectivity issues, the crypto ecosystem has demonstrated strong resilience, becoming a core component of the everyday economy. This model of mass adoption may provide lessons for other countries facing similar economic challenges and highlight the practical application of stablecoins as a store of value and medium of payment in a hyperinflationary environment.

Gemini partners with Ripple to launch XRP rewards credit card

Quick takeaways

• Crypto exchage Gemini partnered with Ripple to launch an XRP rewards credit card, issued by WebBank and based on the Mastercard network. It offers 4% XRP cashback on gas, electric vehicle charging, and ride-hailing purchases, 3% on dining, 2% on groceries, and 1% on other purchases, with up to 10% cashback at select partner merchants.
• This card supports XRP and Ripple's US dollar stablecoin RLUSD. After its launch, Gemini surpassed Coinbase in the US Apple App Store's financial category, ranking 16th and 20th respectively, although Gemini's daily trading volume ($382 million) is only about one-third of Coinbase's ($4.54 billion);
• Gemini is preparing for an IPO, and its financial report for the first half of 2025 showed revenue of $67.9 million and a net loss of $282.5 million. Revenue increased compared to the same period last year, but losses widened.

Why it matters

• This credit card signals the further integration of cryptocurrencies into everyday consumption, creating a low-barrier entry point for non-crypto users. The product's success has driven a surge in Gemini app downloads, reflecting the accelerated mainstream adoption of the crypto industry since the Trump administration took office. This move is both a strategic expansion of Gemini's business lines ahead of its IPO and a testament to the industry's shift from speculation to a practical payment tool, as well as the new competitive landscape in which crypto companies compete for users through traditional financial products.

TD Securities becomes first third-party custodian to join JPMorgan's blockchain debt platform

Quick takeaways

• TD Securities has become the first financial institution to offer third-party custody services on the JPMorgan Digital Debt Services (DDS) blockchain platform, marking a milestone in the application of blockchain technology in institutional bond custody.
• The collaboration enables TD Securities to provide custody services for debt instruments issued, settled, and managed via the J.P. Morgan Blockchain, supporting precisely timed settlements (including same-day settlements), automated lifecycle management, and streamlined corporate actions with smart contracts.
• TD Securities Investment Management has seamlessly executed a $100 million commercial paper transaction on-chain as a test, validating the feasibility of the technology.

Why it matters

• This collaboration marks a shift by a financial giant from blockchain pilot projects to large-scale deployment in traditional capital markets, bringing advantages to the bond market, including reduced operational risk, faster settlement, and lower costs. As a global financial giant managing approximately $4.7 trillion in assets and custodial assets totaling $46.6 trillion, TD Securities' participation sets a precedent for other custodians and banks to adopt blockchain technology, confirming the ongoing role of custodians in supporting the development of new digital asset classes.

Arrive AI announces it will pay employees and suppliers with Bitcoin and plans to issue its own token

Quick takeaways

• Arrive AI, a logistics and delivery company, announced the launch of a Bitcoin payment program, allowing employees, suppliers, and customers to choose to receive cryptocurrency instead of US dollars. CEO Dan O'Toole will become the company's first employee to adopt this program.
• The company plans to issue its own token to pay workers, settle supplier contracts, and streamline transactions within its delivery network, aiming to increase transparency, speed, and efficiency.
• Arrive AI is actively expanding, planning to triple its headcount, focusing on hiring AI scientists, software engineers, and product developers, emphasizing the company's "AI-first" operational strategy.

Why it matters

• Arrive AI's crypto payments initiative demonstrates the convergence of blockchain technology and logistics AI. By issuing a dedicated token, the company not only streamlines cross-border payments but also provides employees and partners with opportunities to participate in the platform's growth. Unlike payment giants like Mastercard, which focus on stablecoins, Arrive directly adopts Bitcoin for payroll payments, demonstrating growing corporate confidence in crypto assets as a practical payment tool. This could potentially shift the use of cryptocurrencies from speculative to practical applications in everyday commercial transactions.

Square unveils product roadmap, launching Bitcoin payments, loans and self-service terminals in its first week

Quick takeaways

• Square announced a public product roadmap, planning to launch a Bitcoin payment system, including a Bitcoin wallet and the ability to automatically convert some credit card sales into Bitcoin;
• In terms of financial services, Square will allow merchants to apply for loans in the first week of using its payment processing services and apply for credit cards without pre-approval;
• New restaurant features include combo meal options, self-service kiosks, centralized menu management across locations, automatic credit card surcharges, and enhanced back-of-house and reporting tools.

Why it matters

• Square's public roadmap signals its strategic shift from a payments processor to a comprehensive business technology platform. Bitcoin payments will establish Square as a bridge between traditional commerce and the crypto economy, while its first lending service directly challenges the traditional banking industry's long-standing credit approval process. These initiatives not only lower the barrier to financing for small businesses but also demonstrate Blockchain's long-term commitment to mainstreaming Bitcoin, potentially integrating crypto assets into everyday commerce.

Macro Trends

US Stablecoin Bill Leads to Repositioning of EU Digital Euro Strategy

Quick takeaways

• The EU is reconsidering its digital euro plan due to the US GENIUS Act and may consider issuing it on public blockchains such as Ethereum or Solana rather than private blockchains. This would be a major shift for Europe, which strictly controls cash transactions and supports CBDCs.
• A senior ECB official warned that stablecoins, if left unregulated, would weaken the European banking system, threaten financial stability, and even lead to "geopolitical dependence," while the ECB president warned that stablecoins could undermine the central bank's ability to influence the economy through monetary policy;
• The European Union faces a dilemma in designing a digital euro: it must be good enough for people to choose it over the US dollar stablecoin, but not so good that users abandon their bank deposits. Economist Luis Garicano described the ECB's position as "we are afraid of stablecoins, but we don't want to give CBDCs too much of an advantage."

Why it matters

• The EU's strong reaction to US stablecoins could strengthen the GENIUS Act's practical impact. The blockchain dollar has already put the EU in a difficult position, forcing a difficult decision on the role of central bank digital currencies (semi-stablecoin, semi-CBDC). This demonstrates the true power of blockchain technology. Even if Trump's claim that stablecoins will significantly extend the dollar's dominance is not entirely credible, Europe's strong reaction to this threat reveals the scale of the interests at stake.

BIS Survey: One-third of central banks are accelerating CBDC research and development due to stablecoins

Quick takeaways

• The BIS 2024 Central Bank Digital Currency Survey shows that one-third of central banks are accelerating their CBDC research due to the development of stablecoins and crypto assets. The European Central Bank has repeatedly cited the United States' expansionary stablecoin policy as the reason for the urgency of the digital euro.
• Overall CBDC research work declined slightly, from 94% in 2023 to 91% in 2024, with a more pronounced decline in emerging markets. “Research work” includes research, pilots, or the advancement of production plans.
• 45% of central banks have already developed legislation on stablecoins and cryptocurrencies, and another 22% are in the process of developing it, which means that two-thirds of economies will soon establish relevant regulatory frameworks, and about 80% will adopt specialized legislation rather than reforming existing regulations.

Why it matters

• Central banks' response to stablecoins indicates the intensifying competition between public and private digital currencies, with regulators shifting from a wait-and-see approach to action. While stablecoin usage remains relatively low in most regions, the growth of cross-border payment applications in emerging markets has drawn regulatory attention. The rapid development of dedicated regulatory frameworks, rather than leveraging existing regulations, indicates that stablecoins are being recognized as a distinct type of financial instrument requiring specialized oversight, which will have profound implications for the global digital currency landscape.

Capital layout

Visa-backed stablecoin company Rain receives $58 million investment from Samsung and other institutions

Quick takeaways

• Rain, a startup building stablecoin payment infrastructure, has raised $58 million in Series B funding led by Sapphire Ventures, with participation from Samsung Next, Dragonfly, and Galaxy Ventures, bringing its total funding to $88.5 million.
• Rain offers Visa debit and credit card services, providing “enterprise-grade stablecoin payment infrastructure” to fintech companies, banks, and marketplace platforms, enabling clients to issue “stablecoin-powered cards, wallets, and payment apps”;
• The company's cards can be used anywhere Visa is accepted, and transaction volume has increased tenfold since January of this year; MetaMask also recently plans to launch a MetaMask card that supports Mastercard merchants before the end of the year.

Why it matters

• The GENIUS Act and the European MiCA framework have created a clear regulatory path for stablecoins, driving a surge in corporate interest. Rain connects stablecoins to Visa's global network, transforming digital assets into a viable means of payment for everyday consumption and bridging the gap between crypto and traditional financial systems. Following the Trump administration's establishment of regulatory clarity for stablecoins, major US banks such as Bank of America have expressed interest in issuing their own stablecoins. The market is expected to reach trillions of dollars within a few years, creating significant growth potential for infrastructure providers like Rain.

Stablecoin platform M0 completes $40 million Series B financing

Quick takeaways

• Swiss stablecoin platform M0 has completed a $40 million Series B funding round led by Polychain Capital, Ribbit Capital, and Endeavor Catalyst, with participation from existing investors Pantera and Bain Capital Crypto, bringing its total funding to $100 million since its founding in 2023.
• M0’s unique “first principles” approach separates stablecoin reserve management from programmability: regulated entities manage the assets behind stablecoins (such as cash and U.S. Treasury bonds), while developers use the M0 platform to define who can create, hold, and transfer these assets.
• The M0 platform will support the issuance of MetaMask's mUSD stablecoin, which is expected to be launched on Ethereum and Linea later this year; in July this year, the total supply of the M0 platform exceeded US$300 million, doubling from January.

Why it matters

• With the passage of the GENIUS Act in the United States this year, companies like M0 are creating a bridge for traditional businesses to enter the crypto space. M0's application-specific stablecoin model decouples reserve management from token functionality, allowing developers flexible control over digital dollar functionality while maintaining regulatory compliance. Payments giant Stripe's Bridge platform, acquired for $1.1 billion last year, has been integrated into M0, becoming the first US-regulated issuer, highlighting the deep integration of traditional finance and the emerging stablecoin infrastructure. This reflects market expectations of an industry transformation, with the potential for thousands of Tether and USDC competitors to emerge under the new regulatory framework.

Ripple and Circle jointly invest in cross-border payment platform Tazapay

Quick takeaways

• Singaporean cross-border payment infrastructure platform Tazapay has completed its Series B funding round, led by Peak XV Partners and with participation from digital asset giants Ripple and Circle. The funds will be used to accelerate its license applications in key markets such as the United States, Australia, Hong Kong, and the United Arab Emirates.
• Tazapay is building a global payment collection and settlement infrastructure based on modern payment rails. Its key use case is to provide fiat currency bridging services for stablecoins in emerging markets. It currently has one of the most extensive fiat currency collection networks in emerging markets.
• The investments from Ripple and Circle highlight Tazapay’s central role in bridging the worlds of traditional finance and digital currencies, particularly in building compliant “last mile” connections.

Why it matters

• This financing marks a key step in the expansion of stablecoin infrastructure into emerging markets. As the boundaries between traditional finance and cryptocurrencies gradually dissolve, Tazapay's fiat bridging service will address the pain points of multi-day settlement times, high fees, and intermediary reliance in cross-border payments. The strategic investments from two blockchain payment giants, Ripple and Circle, demonstrate the industry's commitment to building a more comprehensive global payments network, particularly in emerging markets underserved by traditional financial services, accelerating the practical application and adoption of stablecoins as a cross-border payment solution.