Welcome to the 27th edition of the Cobo Stablecoin Weekly Report. This issue covers key global stablecoin and fintech developments from the past two weeks. Highlights include:
With the passage of stablecoin legislation in the United States, fintech is becoming the most active driving force. Stripe has made a series of moves over the past two weeks: applying for federal banking and state trust licenses, launching Open Issuance, a self-service issuance tool for businesses, and jointly releasing the ACP agreement with OpenAI to establish an open payment standard for AI-powered e-commerce. This series of initiatives signals that payment infrastructure is evolving from a "human-machine interface" to an "intelligent interface."
This transformation is necessary because stablecoins are infiltrating the financial system from the fringes. Visa is positioning itself as an infrastructure builder for "on-chain finance" and improving the stablecoin cross-border payment experience for businesses. Anchorage Digital has launched a USD wire transfer service covering both crypto and traditional accounts. Fiserv and the Bank of North Dakota are piloting an intrastate stablecoin , Roughrider. Swift is leading 30 banks in testing blockchain-based cross-border settlements. As these established systems move to blockchain, the old logic of relying on arbitrage through traditional PSP channels will naturally come to an end. Stripe's proactive approach is essentially a proactive response to this impending reshuffle.
Once arbitrage opportunities disappear, competition will return to the essence of business and customer value. A new generation of fintech companies is deeply engaged in vertical sectors. For example, Fasset has launched a Sharia-compliant interest-free crypto product. Brazil's Crown combines local government bond yields with blockchain efficiency to launch a non-USD stablecoin yield product for institutions. Daylight has extended stablecoin returns to sustainable energy, integrating RWA with community ownership.
Market Overview and Growth Highlights
The total stablecoin market capitalization reached $307.124 billion (approximately $307.1 billion), a weekly increase of $2.814 billion (approximately $2.814 billion). USDT maintained its dominant position, accounting for 59.09% of the market, while USDC ranked second with a market capitalization of $75.67 billion (approximately $75.67 billion), accounting for 24.64%.
Blockchain network distribution
The top three stablecoin networks by market capitalization are:
Ethereum: $162.294 billion (US$162.294 billion)
Tron: $78.349 billion
Solana: $15.646 billion
Top 3 fastest growing networks per week:
crvUSD (crvUSD) ：+134%
Global Dollar (USDG): +25.63%
Ripple USD (RLUSD): +6.56%
Data from DefiLlama
Bridge, Coinbase, and Sony apply for US trust bank licenses, and stablecoin companies accelerate their "federalization" layout
Bridge (acquired by Stripe), Connectia Trust, a subsidiary of Sony Bank, and Coinbase all announced their applications for national trust bank charters from the OCC around the same time. Joining Circle, Ripple, and Paxos earlier, a race for federal charters is emerging. Clearly, after the passage of the GENIUS Act, applying for an OCC national trust bank charter has become almost inevitable for stablecoin companies.
The significance of this license is that it allows these companies to directly come under federal regulation, eliminating the need to apply for complex licenses in each state. Not only will they be able to operate legally nationwide, but they will also secure a pre-emptive path to compliance once the GENIUS Act takes effect, becoming the first "federal-level stablecoin banks."
However, obtaining a license does not mean that Circle can directly custody all USDC reserves.
OCC regulations on proprietary trading and trust banking prohibit banks from investing or disposing of their own or affiliates' assets, and trust funds from being used for related-party transactions. This legally prevents Circle's trust bank entity (First National Digital Currency Bank, NA) from directly holding USDC reserves, as doing so would be considered proprietary trading. Furthermore, the GENIUS Act requires stablecoin reserves to include cash, which is typically held in the form of demand deposits at insured commercial banks. However, a national trust bank license prohibits accepting demand deposits, further limiting Circle's ability to directly custody its cash reserves.
This means that even if a stablecoin is successfully licensed, issuers will still need to rely on traditional custodians like BNY Mellon or BlackRock to manage a portion of their reserves. However, the difference lies in obtaining trust bank qualifications, which transforms the issuer from a "custodian" to a "regulatory coordinator," moving up a level in the system. This doesn't mean banks will exit the stablecoin business; on the contrary, they are repositioning themselves as the core fulcrum for cash custody and settlement within the stablecoin ecosystem, providing the underlying security and trust of the digital dollar system. Citigroup plans to launch crypto asset custody services in 2026, while BNY Mellon is positioning itself as an institutional hub connecting cash, collateral, and infrastructure, continuing to play a cornerstone role in the stablecoin system in the two most critical links of "cash custody" and "Treasury bond clearing."
From a longer-term perspective, the true value of a trust bank license lies in providing direct access to the Federal Reserve's main account. Access to the FedWire real-time settlement system means these issuers can complete dollar clearing directly within the Federal Reserve system, eliminating reliance on commercial banks as intermediaries. In the past, stablecoin reserves often relied on commercial bank accounts. Increased redemption demand necessitated temporary liquidity allocations, introducing additional operational and credit risks. With FedWire access, the exchange of dollars for stablecoins will become instant, transparent, and auditable.
This move effectively embeds the "dollar side" of the stablecoin into the core of the US financial infrastructure. Reserve assets are removed from commercial bank balance sheets and anchored within the Federal Reserve's clearing network. For issuers like Bridge, this not only improves settlement efficiency but also elevates the stablecoin from a "commercial bank product" to a "settlement asset within the central bank system," effectively entering the core of the US financial system.
Stripe and OpenAI define ACP, establishing an open standard for agency e-commerce
The past two weeks have seen a series of significant events surrounding stablecoins , with fintech giant Stripe undoubtedly at the center of the action .
In a short period of time, Stripe has launched the Open Issuance platform , co-released the Agentic Commerce Protocol (ACP) with OpenAI, and launched the "Instant Checkout" feature on ChatGPT . Simultaneously, to comply with new US stablecoin regulations, the company is also applying for a federal banking charter (OCC) and a New York State trust charter (NYDFS) . These actions together complete Stripe's evolution into "commerce infrastructure for the AI era."
Of greatest strategic significance is the Agentic Commerce Protocol (ACP), jointly launched by Stripe and OpenAI. This protocol establishes a common language and open standards for AI-powered e-commerce ecosystems. Its first application is ChatGPT's instant checkout feature, allowing users to complete purchases directly within the chat interface without redirecting or reopening pages. Etsy has already adopted this feature, and it will be expanded to Shopify ecosystem brands such as Glossier, Vuori, and Spanx . This allows shopping scenarios to be naturally integrated into AI language interactions, and ACP is attempting to define this new business paradigm centered around agents.
The ACP protocol introduces the Shared Payment Token (SPT) , a one-time encrypted token with limit, time, and usage, and support for tracking and revocation. After user authorization, the AI Agent generates the SPT using a bank card, PIX, or stablecoin, without requiring access to actual payment credentials. The token is then passed to the merchant to complete the transaction, achieving a "operable but not revealable" security architecture. Tokenization reduces the compliance burden for merchants and AI Agents, narrowing the scope of PCI-DSS , but generation and authorization still rely on compliance service providers. Risk control tools like Stripe Radar monitor fraud risks, and dynamic tokenization enhances privacy and the payment experience.
For Stripe, ACP serves as a universal language connecting AI platforms, merchants, and payment processors. Its core philosophy is agnostic—platform-agnostic, merchant-agnostic, and payment processor-agnostic. Merchants can integrate with any compatible AI platform with a single integration; AI platforms can connect directly with any merchant; and payment processors are free to choose their own payment processors (not limited to Stripe). This open architecture reduces integration costs and enables rapid expansion of the transaction network.
Beneath the veneer of open protocols, Stripe's true purpose lies in its insight into the shifting center of power on the internet—from websites and search to AI-driven conversational interfaces. The definition of traffic is changing—no longer measured in pages, but generated instantaneously by intent and behavior. This means that the key to mastering this new market lies in redefining how traffic works. ACP is the vehicle for this paradigm shift: it enables platforms, merchants, and payment providers to collaborate under the same standards, allowing Stripe to establish itself at the core of the protocol layer, becoming the underlying language for business data and transaction flows.
This structure redistributes the interests and incentives of internet commerce. AI platforms can find new profit models in transaction sharing, while merchants gain access to higher-conversion traffic channels. Payment service providers who refuse to integrate with the standards risk being marginalized. With e-commerce conversion rates within ChatGPT reaching 6.8 times that of Google's organic search, AI conversations have become the new frontier of commerce. Stripe has thus completed its transformation from a payment service provider to a business infrastructure provider, with AI agents becoming the new front-end—a transient, generated, and ready-to-use "browser." Behind the scenes, Stripe builds a complete transaction operating system with ACP, Tempo, Link, Bridge, and Radar. ACP defines standards, Tempo handles clearing, Link manages identity, Bridge connects cross-border transactions and issuance, and Radar ensures risk control.
New Product Express
Coinbase Launches Enterprise-Grade Stablecoin Payment Platform "Coinbase Business"
Quick takeaways
Coinbase launched its enterprise-grade USDC payment platform, “Coinbase Business,” which simplifies supplier payment processes, eliminates the risk of chargebacks, and provides seamless API integration. USDC balances stored on the platform earn an annualized yield of 4.1%.
The platform supports the withdrawal of funds to the affiliated corporate bank account at any time via wire transfer or ACH, and can synchronize transaction records with QuickBooks or Xero through CoinTracker to ensure compliance;
Coinbase is exploring expanding stablecoin applications, including AI-driven agent commerce and the x402 open source payment protocol, which is used for stablecoin transactions between AI agents. The company has also reportedly been in talks to acquire stablecoin payment company BVNK for approximately US$1.5 billion.
Why it matters
Coinbase and Circle split USDC revenue 50/50. Launching its own payment platform will help increase USDC trading volume and boost revenue, while laying the foundation for emerging areas such as AI and machine-to-machine payments.
Cloudflare partners with three major payment giants to build payment rails for AI Agent
Quick takeaways
Cloudflare announced a collaboration with Visa, Mastercard, and American Express to establish certification standards for AI-powered autonomous agent commerce and develop the "Trusted AI Agent Protocol."
Cloudflare and Visa co-developed a protocol that allows merchants to authenticate AI shopping bots using their Web Bot Auth standard, and Mastercard and American Express are also using similar integrations in their respective AI commerce frameworks;
The partnership expands Cloudflare’s strategy to enter machine-to-machine payments, following the company’s announcement of the NET Dollar stablecoin initiative and its partnership with Coinbase to establish the x402 Foundation to standardize proxy payment protocols.
Why it matters
This collaboration marks the establishment of the economic infrastructure for "agent commerce," enabling AI agents to autonomously search, negotiate, and purchase goods and services. As AI agents gain financial autonomy, they will require programmable currencies for instant and secure online transfers. Cloudflare is building the trust foundation for this ecosystem, and the addition of early partners like Shopify, Microsoft, and Circle demonstrates the industry's broad efforts to advance standards for autonomous transactions.
Solana's Jupiter to Develop JupUSD Stablecoin with Ethena Labs Support
Quick takeaways
Jupiter, the largest decentralized exchange on Solana, plans to launch its native stablecoin, JupUSD, by the end of the year. It will be deeply integrated into its ecosystem, including its perpetual contract platform, lending market, and trading interface.
JupUSD will be developed in partnership with Ethana Labs and will initially be fully collateralized by Ethana’s USDtb stablecoin, backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
Jupiter plans to add USDe as a secondary backing asset in the future to increase its earnings potential. It is currently developing the minting and redemption smart contracts for JupUSD and will undergo multiple rounds of audits before release.
Why it matters
As the leading protocol in the Solana ecosystem with a total locked-in value of $3.58 billion, Jupiter's entry into the stablecoin market represents the trend of DEX transforming into a full-featured financial platform. Its collaboration with Ethana Labs provides it with a reliable collateral model, which is expected to enhance the application scenarios of stablecoins within the Solana ecosystem.
Cryptocurrency compliance firm Notabene launches stablecoin payment platform
Quick takeaways
Crypto compliance company Notabene launched the Flow platform, designed for high-value commercial transactions, introducing long-missing debit authorization, invoicing, and dispute resolution features in the crypto payment field;
The platform is built on Notabene’s existing network, which covers over 2,000 regulated entities and processes $1.5 trillion in annual transactions. Its initial partners include Zodia Custody, Bitso, and Borderless;
By collaborating with the Transaction Authorization Protocol (TAP) and the Global Legal Entity Identification Foundation (GLEIF), Flow overcomes the “push-only” limitations of crypto transactions and enables pull payments, recurring billing, and standardized coordination.
Why it matters
The platform provides a reliable trust framework for cross-border B2B stablecoin payments, enabling stablecoins to integrate the compliance standards of traditional finance. It coincides with Swift's preparations to launch a blockchain-based stablecoin system, marking an intensified competition in institutional-grade crypto payment solutions.
Aleo and Paxos Labs launch privacy-focused USD stablecoin targeting institutional users
Quick takeaways
Aleo Network Foundation and Paxos Labs jointly launched the privacy-oriented USD stablecoin USAD, based on Aleo's zero-knowledge proof blockchain, with end-to-end encryption of wallet addresses and transaction amounts;
Unlike traditional stablecoins such as USDT and USDC, USAD focuses on addressing financial institutions' concerns about the exposure of sensitive transaction data on the chain, allowing businesses to embed private, programmable, and trustworthy digital dollars.
The project is supported by well-known investment institutions such as a16z, Coinbase Ventures and SoftBank. Paxos Labs has extensive experience in the stablecoin field and has previously incubated products such as PYUSD and Global Dollar (USDG).
Why it matters
USAD combines privacy technology with stablecoins and was launched against the backdrop of this year's GENIUS Act establishing federal standards for the issuance of stablecoins. It is expected to address key obstacles to the large-scale adoption of blockchain and provide institutions with digital payment solutions that meet regulatory transparency requirements while protecting user privacy.
Capital layout
CZ affiliate YZi Labs leads $50 million investment in stablecoin payment company BPN
Quick takeaways
The former Binance Labs, renamed YZi Labs, led a $50 million seed round for the stablecoin payment company Better Payment Network (BPN);
BPN is built on the BNB chain and combines centralized and decentralized financial models to enable real-time minting, swaps, and settlement of stablecoins across jurisdictions.
The company plans to use the funds to build an on-chain liquidity pool and market-making system to support stablecoin swaps in emerging markets, shorten cross-border settlement time from two days to a few hours, and reduce transaction costs from 2% to 0.3%.
Why it matters
The multi-stablecoin liquidity model provides an alternative to the USD centralized payment system, and CZ-affiliated investment institutions continue to deploy in the stablecoin payment field.
Quick takeaways
Daylight closes $75 million in funding, including $15 million in equity led by Framework Ventures and $60 million in project funding from Turtle Hill Capital, to scale its home energy deployment.
The company innovatively offers a no-upfront-cost energy subscription service where households receive a solar and energy storage system, which allows them to sell stored energy back to the grid during peak hours and earn money through the "Sun Points" rewards program.
The DayFi protocol will create a stablecoin product backed by electricity revenue, representing a new trend in the stablecoin market, shifting from pure financial assets to physical infrastructure revenue, and realizing the integration of DeFi and a sustainable energy ecosystem.
Why it matters
Stablecoins are shifting from pure asset backing to real-world assets (RWA) of physical infrastructure income and emerging industries, creating a new model of sustainable inclusive finance that combines community energy with financial innovation.
Coinbase and Mastercard vie for European stablecoin firm BVNK, valued at around $2 billion
Quick takeaways
Coinbase and Mastercard have entered into advanced acquisition negotiations with London-based stablecoin infrastructure company BVNK, with the transaction value estimated at $1.5-2.5 billion. Coinbase currently appears to have the upper hand.
BVNK was founded in 2021 and provides stablecoin payments, cross-border transfers, and global treasury management services. It raised $50 million in December last year and was valued at $750 million at the time.
This acquisition will be the largest acquisition in the stablecoin field, surpassing Stripe's $1.1 billion acquisition of Bridge last year, reflecting that stablecoin technology is accelerating into the financial mainstream.
Why it matters
The competition among payment giants for stablecoin infrastructure shows that traditional finance is actively responding to industry changes, especially after Trump signed the Genius Act. Stablecoins, as a faster and lower-cost alternative to traditional payments, are forcing traditional payment networks to reposition themselves.
Crown secures $8.1 million in seed funding and will launch BRLV, an institutional-only, yield-generating Brazilian Real stablecoin.
Quick takeaways
Brazilian fintech company Crown has completed an $8.1 million seed round led by Framework Ventures, with participation from Coinbase Ventures and Paxos. The funds will be used to issue BRLV , a stablecoin pegged to the Brazilian real (BRL) and fully backed by Brazilian government bonds .
BRLV is unique in that it provides institutions with a share of government bond returns. It is known as the "Circle of Brazil" and is essentially an institution-exclusive, non-US dollar, income-generating stablecoin for Brazil.
This stablecoin creates an efficient channel for institutional investors, allowing global capital to obtain on-chain returns in Brazil's high-interest environment at low friction costs, bypassing the cumbersome processes of the traditional financial system.
Why it matters
This is a typical application case of RWA tokenization, demonstrating the innovative potential of the non-US dollar stablecoin market. By combining local high-yield bonds with blockchain efficiency, it provides a new type of financial infrastructure for emerging markets and attracts institutional capital from around the world.
Tether and Antalpha implement the gold token strategic layout, Prestige Wealth is the first implementation party of the transformation
Quick takeaways
Tether and crypto mining machine financing company Antalpha's original plan to raise $200 million to establish XAUT Asset Management has been initially implemented. Nasdaq-listed Prestige Wealth completed a $150 million financing to transform into its first execution platform;
Prestige Wealth (soon to be renamed Aurelion) secured $100 million in private equity and $50 million in debt financing led by Antalpha. The company will focus on holding XAUT, which has a market value of nearly $1.5 billion, and generating income through lending.
The collaboration establishes a complete ecosystem: providing mining companies with XAUT lending services collateralized by BTC; at the same time, Aurelion, as an asset management company that holds a large amount of XAUT, creates a blockchain-native, publicly verifiable tokenized gold asset library.
Why it matters
Through this series of strategic collaborations, Tether has successfully built a complete tokenized gold ecosystem, from issuing XAUT to providing financing services, to establishing a professional asset management company, providing the market with a full range of gold token solutions, while helping crypto mining companies diversify their assets and improve risk management.
PayPay acquires 40% stake in Binance Japan, bridging the gap between crypto and digital payments
Quick takeaways
Japanese payment giant PayPay has acquired a 40% stake in Binance Japan. The two parties have reached a capital and business alliance aimed at connecting the digital payment and crypto asset ecosystems.
PayPay, a SoftBank Group company with a 70 million-user payment network, will integrate with Binance's blockchain technology to provide users with a seamless fiat-to-cryptocurrency transaction experience.
In the initial stage of the cooperation, Binance Japan users will be allowed to directly use "PayPay Money" to purchase cryptocurrencies, and support the transfer of proceeds from the sale of crypto assets to PayPay accounts.
Why it matters
This strategic alliance marks a significant convergence of Japan’s mainstream payment and crypto industries. By combining PayPay’s extensive user base with Binance’s technological innovation, it will significantly enhance the accessibility and popularity of Web3 services in Japan.
Pantera and Coinbase lead $25 million investment in Coinflow to help expand stablecoin payments
Quick takeaways
Stablecoin payment platform Coinflow completed a $25 million Series A funding round led by Pantera Capital, with participation from Coinbase Ventures, Jump Capital, and others.
The company has seen a 23-fold increase in revenue since 2024 and currently supports stablecoin payments in over 170 countries, processing billions of dollars in annual transactions;
Coinflow provides a USDC-based cross-border payment infrastructure featuring instant settlement, chargeback protection, and AI-driven fraud prevention, reducing the number of intermediaries and costs in traditional cross-border transactions.
Why it matters
The new funds will be used to expand payment coverage in Asia and Latin America, increase transaction approval rates, and further challenge traditional cross-border payment systems. This reflects the rapid maturity of stablecoin payment infrastructure, providing global merchants with more efficient digital payment alternatives.
Regulatory compliance
OCC approves initial application for Peter Thiel-backed Erebor Bank, focusing on crypto and AI industries
Quick takeaways
The U.S. Office of the Comptroller of the Currency (OCC) has granted “preliminary conditional approval” to Erebor Bank, a company backed by venture capitalist Peter Thiel, which plans to serve the cryptocurrency and artificial intelligence industries.
OCC Supervisor Jonathan Gould emphasized that this is the "first newly established bank to receive preliminary conditional approval" since he took office in July, proving that the OCC will not impose comprehensive barriers on banks engaged in digital asset activities;
Erebor was founded in 2025 by Palmer Luckey and Joe Lonsdale, with backing from Thiel's Founders Fund and Haun Ventures, with the goal of filling the gap left by Silicon Valley Bank, which collapsed in 2023, and serving innovative economy companies.
Why it matters
This approval marks a significant shift in US regulatory stance toward cryptocurrencies. Under the Trump administration, regulators, including the OCC, have eased restrictions on the crypto industry, and the Federal Reserve has withdrawn its previous guidance preventing banks from engaging in crypto businesses. Erebor has stated that it will hold certain cryptocurrencies on its balance sheet, targeting technology companies in the virtual currency, artificial intelligence, defense, and manufacturing sectors. This reflects the accelerating convergence of traditional banking with emerging technologies.
Sony applies to join the stablecoin issuance ranks, and its subsidiary applies for a crypto bank license
Quick takeaways
Connectia Trust, a subsidiary of Sony Bank, has applied for a national banking license from the Office of the Comptroller of the Currency (OCC) in the United States. It plans to issue US dollar stablecoins, manage corresponding reserve assets, and provide digital asset custody services.
The application joins a string of companies seeking crypto banking charters, including payment processor Stripe, crypto exchage Coinbase, stablecoin issuer Paxos, and USDC issuer Circle;
Since the passage of the GENIUS Act in the United States, giants in the financial technology field have entered the stablecoin market. The total market value of the entire stablecoin industry has now reached US$312 billion, and there is a 68% probability that it will grow to US$360 billion before February 2026.
Why it matters
Sony, a global tech giant, has joined the stablecoin race, demonstrating the growing momentum among traditional financial and tech companies in the digital asset space following a regulatory shift favoring the crypto industry. Stablecoins have become a lucrative business for leading issuers such as Tether and Circle, and Sony's entry into the market is well-timed. This is another demonstration of Sony's interest in blockchain technology, following its partnership with Startale Group last year to launch the Ethereum Layer-2 network, Soneiun.
Bank of England plans exemptions to stablecoin holding limits
Quick takeaways
According to Bloomberg, the Bank of England (BoE) is planning to establish exemptions to the previously proposed stablecoin holding restrictions, which will provide exemptions for institutions that need to hold large amounts of stablecoins, such as cryptocurrency exchanges;
The Bank of England will also allow firms to use stablecoins for settlements in its Digital Securities Sandbox;
Previously, Bank of England officials planned to set a stablecoin holding limit of 10,000-20,000 pounds ($13,400-$26,800) for individuals and 10 million pounds ($13.4 million) for businesses, which was criticized by the digital asset industry.
Why it matters
The Bank of England's move shows that it is seeking to balance regulation and innovation. Although Bank of England Governor Bailey is skeptical about stablecoins, the exemption policy shows that the UK is unwilling to be out of line with the stablecoin regulatory trend in major financial jurisdictions such as the United States and Hong Kong.
US senators receive 250,000 letters calling for protection of stablecoin returns
Quick takeaways
The cryptocurrency advocacy group Stand With Crypto launched a large-scale letter campaign, mobilizing over 250,000 members to write to senators to resist the banking lobbying group's attempt to limit the returns of stablecoins;
The move follows a lobbying campaign launched by Wall Street banks in August, which wanted to amend the GENIUS Act to completely shut down the ability of stablecoin issuers to provide returns to users.
Although the GENIUS Act prohibits stablecoin issuers from directly providing interest or returns, it does not restrict their affiliates or exchanges from providing them. The banking industry is concerned that this will lead to a large outflow of deposits and money market funds.
Why it matters
This direct confrontation between the financial and crypto industries highlights the concerns of traditional financial institutions regarding the expansion of the stablecoin market. As the first major U.S. crypto legislation, the GENIUS Act's implementation details will determine the development path of the stablecoin ecosystem, impacting the multi-billion dollar market and the asset returns of millions of users.
Singapore postpones update of cryptocurrency bank rules until 2027
Quick takeaways
The Monetary Authority of Singapore (MAS) has postponed the implementation of prudential regulations for banks’ crypto assets by one year, from January 1, 2026 to early 2027.
The delay stems from industry consultation feedback, with participants expressing concerns that premature implementation of the new rules would put Singapore banks at a competitive disadvantage, and that risk classification based on Basel Committee standards might be unfair to public, permissionless blockchain assets.
The updated rules will require banks to hold capital reserves based on the risk level of crypto assets, and assets deemed highly volatile may require capital buffers of up to 1,250%.
Why it matters
With Web3 investments accounting for 64% of total fintech funding in Singapore, the delayed implementation shows that regulators are seeking a balance between protecting financial stability and supporting innovation, while facing competitive pressure from regions such as Hong Kong, the European Union, and the UAE.
Fasset receives Malaysian license to launch first Islamic digital bank based on stablecoin
Quick takeaways
Digital asset investment platform Fasset has been granted a provisional banking license in Malaysia and will establish the world's first Shariah-compliant digital bank based on stablecoins.
Fasset plans to offer asset-backed savings, zero-interest accounts, and global on-chain payment services that comply with Sharia law. Customers can hold deposits, invest in US stocks, gold, and cryptocurrencies, and spend through the planned Visa crypto card.
The company will also launch an Ethereum second-layer network "Ow" based on Arbitrum for on-chain settlement of regulated physical assets. Its stablecoin infrastructure allows users to avoid interest-bearing products while preserving value.
Why it matters
This innovative model is expected to address the widespread accessibility issues of financial services in the global $5 trillion Islamic finance industry, provide compliant asset-backed financial products to Muslim-dominated regions, and mark the successful integration of crypto technology and Islamic finance principles.
SEC Chairman says "Innovation Exemption" rules will be formally formulated by the end of the year
Quick takeaways
Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), said that although the government shutdown has limited regulatory progress, the SEC still plans to launch the formal rulemaking process for the "innovation exemption" in late 2025 or early 2026;
Atkins emphasized that cryptocurrency is a "top priority" and that the SEC has transformed into an agency that supports innovation, aiming to encourage developers and entrepreneurs to build in the United States, reversing the situation in which the previous administration suppressed the crypto industry for four years, causing innovation to shift overseas.
The move would end the previous administration's "enforcement as regulation" approach, as well as the current practice of informal guidance and staff briefings, and move toward formal rulemaking.
Why it matters
The SEC's introduction of a formal "innovation exemption" will provide a clear regulatory framework for the digital asset industry and, together with the GENIUS Act, build a complete crypto regulatory ecosystem. Experts predict that stablecoin use cases will experience a "Cambrian explosion," expanding across areas from payments to collateral.
Market adoption
Walmart-backed OnePay to add Bitcoin and Ethereum transactions to its financial app
Quick takeaways
Walmart-backed fintech company OnePay plans to add cryptocurrency trading and custody features to its app by the end of the year, allowing users to buy, hold and convert Bitcoin and Ethereum;
The service will be powered by technology from Chicago-based Zerohash, bringing OnePay in line with competitors like Venmo, Cash App, and PayPal, which already offer crypto transactions to U.S. users.
OnePay was founded in 2021 by Walmart and venture capital firm Ribbit Capital. It is positioned as a "full-service application" for digital finance. Its current services include high-yield savings accounts, debit and credit cards, peer-to-peer payments and installment payment options.
Why it matters
The Walmart-backed financial application's foray into cryptocurrency will provide convenient crypto services to Walmart's huge consumer base (customers of nearly 4,600 US stores), marking a sign that large retailers are seeking to enhance their financial ecosystem by integrating crypto capabilities, particularly for US consumers who are underserved by traditional banks.
BlackRock Launches GENIUS Act-Compliant Money Market Fund to Serve Stablecoin Issuers
Quick takeaways
BlackRock, the world's largest asset management company, has revamped its BlackRock Select Treasury Bond Liquidity Fund (BSTBL), designed specifically for stablecoin issuers compliant with the GENIUS Act, to simplify the management of their high-quality liquidity reserves.
This move is consistent with BlackRock’s digital asset strategy. The company has launched Bitcoin ETF, Ethereum ETP and BUIDL tokenized liquidity fund, and is exploring tokenized funds linked to physical assets;
The U.S. Treasury Department is soliciting public comments on the regulatory details of the GENIUS Act. Analysts predict that the issuance of stablecoins will reach $2 trillion by 2028, with the current market supply of approximately $300 billion.
Why it matters
Wall Street is accelerating its asset tokenization efforts, with TD Cowen analysts predicting that the on-chain capital base will exceed $100 trillion within five years.
S&P Global Brings Stablecoin Risk Scores to Chainlink
Quick takeaways
S&P Global Ratings partnered with Chainlink to deploy its stablecoin stability assessments directly on the blockchain, enabling DeFi protocols and platforms to access risk assessment data in real time.
The evaluation system rates stablecoins on a scale of 1 to 5 based on factors such as asset quality, liquidity, redemption mechanism, regulatory status, and governance structure. Currently, 10 stablecoins have been evaluated, including USDT, USDC, and USDS/DAI.
The service will first be launched on Ethereum’s second-layer network Base, and will be implemented through Chainlink’s DataLink infrastructure, eliminating the need for traditional data providers to build new systems to publish on-chain data.
Why it matters
As the stablecoin market size has grown from $130 billion last year to $305 billion, S&P has introduced professional ratings directly onto the chain, eliminating the DeFi platform's reliance on off-chain data sources and enabling smart contracts to automatically reference authoritative risk assessments, marking the deep involvement of traditional financial institutions in crypto asset infrastructure.
Societe Generale and Bitpanda Expand Partnership to Bring Regulated Stablecoins to DeFi
Quick takeaways
Austrian cryptocurrency exchange Bitpanda will offer Societe Generale SG-FORGE’s euro and dollar CoinVertible stablecoins (EURCV and USDCV) to European retail users for the first time through its platform and DeFi wallet;
Bitpanda becomes the first retail broker in Europe to allow clients to earn yield on CoinVertible stablecoins, which can be borrowed and lent across supported on-chain protocols such as Morpho and Uniswap.
The cooperation between the two parties may be expanded to Bitpanda’s Vision Token and the planned Vision Chain in the future, jointly exploring more possibilities of bridging traditional finance with Web3.
Why it matters
This collaboration represents the official entry of bank-grade stablecoins that comply with the EU MiCA framework into the DeFi ecosystem, providing asset options with greater regulatory certainty for the decentralized market and marking a key step in the integration of regulated digital assets and decentralized finance.
Visa pilots pre-funded stablecoin for cross-border payments
Quick takeaways
Visa has launched a stablecoin pre-load pilot program on the Visa Direct platform. Businesses can top up their accounts with stablecoins instead of fiat currencies, and Visa will treat them as "bank deposits" for direct payment.
This innovation reduces the time it takes to lock up cross-border funds from days to minutes, freeing up significant liquidity for large enterprises and avoiding the opportunity cost of millions of dollars in idle funds.
Visa cleverly embeds stablecoins as a "fund transmission medium" into the back-end system to optimize core cross-border payment services, improving corporate capital turnover efficiency without subverting traditional fiat currency payments.
Why it matters
Visa is accelerating its stablecoin strategy, using digital assets to address pain points in traditional cross-border payments and saving companies money on locked-in funds. This marks the beginning of a pragmatic integration of blockchain technology advantages into mainstream payment infrastructure.
Bank of America, Citigroup, Goldman Sachs and other large banks jointly explore the issuance of stablecoins
Quick takeaways
Ten international banks announced a collaboration to explore issuing stablecoins pegged to G7 currencies. Participating institutions include Bank of America, Citigroup, Goldman Sachs, Santander, Barclays, BNP Paribas, Deutsche Bank, Mitsubishi UFJ Bank, TD Bank Group and UBS.
The project plans to issue a "1:1 reserve-backed digital currency" on a public blockchain, aiming to bring the benefits of digital assets to the market and enhance market competition while ensuring full compliance with regulatory requirements;
The move comes after U.S. President Trump signed the GENIUS Act in July, which established a framework for issuing and trading stablecoins and provided a legal basis for banks to enter the stablecoin market.
Why it matters
The joint exploration of stablecoins by top global banks signals that traditional financial institutions are accelerating their investment in digital assets to address potential market fluctuations. Analysts at Standard Chartered Bank predict that stablecoins could attract $1 trillion in deposits from emerging market banks over the next three years.
Square Launches Bitcoin Payment Tool for Small Businesses
Quick takeaways
Square launched a new tool suite, "Square Bitcoin," which allows small businesses to accept Bitcoin payments with no processing fees for the first year and manage crypto assets and traditional finances on the same platform.
Key features include Bitcoin payments, automatic conversion of everyday card sales into Bitcoin (up to 50%), and a native Bitcoin wallet built into the Square Seller Platform, which will be available to eligible U.S. businesses on November 10;
According to cited data, crypto payments in the United States are expected to grow 82% between 2024 and 2026. Square lowers the threshold for small businesses to participate in the crypto economy by integrating Bitcoin into the existing payment and banking ecosystem.
Why it matters
This move expands crypto payments from investors and technology professionals to mainstream merchants, enabling small businesses such as local coffee shops to easily accept Bitcoin payments. It marks a deepening of Block's long-term Bitcoin strategy and further promotes the popularization of digital currencies in daily commercial transactions.
Macro Trends
Base creator Jesse Pollak says cryptocurrencies need non-dollar stablecoins to be truly useful
Quick takeaways
Jesse Pollak, the creator of Coinbase's Layer 2 network, Base, pointed out at the Token2049 conference in Singapore that non-US dollar stablecoins are the "missing link" in the cryptocurrency field. Currently, 99% of the crypto economy is denominated in US dollars.
According to Pollak, Base processed approximately 81 billion stablecoin transactions last month, with a trading volume of $1.5 trillion. The platform has launched 12 local currency stablecoins, including the Indonesian rupiah, Turkish lira, and Brazilian real.
Coinbase and Base have added two new stablecoins pegged to the Singapore dollar and Australian dollar. At the same time, the Base App super app is in the testing phase, focusing on the creator economy, and currently has a waiting list of 1.2 million people.
Why it matters
Local currency stablecoins allow users to make daily payments and loans in familiar currencies, change the low distribution ratio of value to creators by traditional Internet platforms, accelerate the application scenarios of blockchain from being dominated by the US dollar to diversified currency support, and improve the practicality and acceptance of different markets around the world.
Bhutan to Build National Digital Identity System on Ethereum
Quick takeaways
Bhutan announced that it will migrate its national digital identity (NDI) system from Polygon to the Ethereum network, with full migration expected to be completed in the first quarter of 2026;
Jigme Tenzing, secretary of the Bhutanese government's technology bureau, said that by migrating to Ethereum, the security of digital identity will be "further strengthened." The system currently serves about 800,000 residents;
Aya Miyaguchi, president of the Ethereum Foundation, announced that Bhutan has become the first country to anchor its national digital identity system on Ethereum. She and Ethereum co-founder Vitalik Buterin attended the launch ceremony held in Bhutan on Monday.
Why it matters
This initiative demonstrates a significant example of a sovereign nation adopting public blockchain technology to build critical infrastructure. In addition to adopting blockchain technology to develop its digital economy, Bhutan has also actively engaged in Bitcoin mining in recent years. Currently, with 6,371 Bitcoins, Bhutan ranks as the sixth largest government Bitcoin holder in the world, behind only the United States, China, the United Kingdom, Ukraine, and the United Arab Emirates.
Standard Chartered Bank: Stablecoin surge may trigger $1 trillion withdrawal from emerging market banks
Quick takeaways
A Standard Chartered Bank report warns that as much as $1 trillion could flow out of emerging market banks over the next three years as depositors turn to dollar-backed stablecoins.
Stablecoin adoption is particularly strong in countries with weak currencies and high inflation, such as Egypt, Pakistan, Bangladesh, and Sri Lanka, which face significant risks of deposit outflows.
Standard Chartered predicts that the global stablecoin market will reach $2 trillion by 2028, with about two-thirds of demand coming from emerging markets, even if the US GENIUS Act prohibits providing returns.
Why it matters
Stablecoins are providing households and businesses in developing economies with an alternative to local banks, accelerating the trend of core banking functions shifting to the non-bank sector after the financial crisis. While threatening traditional deposits, they also bring lower-cost remittances and faster payment methods. Regulators in various countries need to adapt quickly, otherwise the "stablecoin summer" may become a "long winter" for emerging market banks.
