Original Title: (Cobo Stablecoin Weekly NO.18: From the US to Hong Kong, Stablecoin Regulation Enters 'National-Level Race' Stage)
Welcome to the 18th edition of the Cobo Stablecoin Weekly.
This week, the global stablecoin sector has seen key progress in both regulatory clarity and practical applications, laying a solid foundation for its acceleration into mainstream finance.
The US released a 168-page (Digital Asset Strategic Report), for the first time characterizing stablecoins as core financial infrastructure, and delineating regulatory boundaries for decentralized finance (DeFi) and self-custody, aiming to eliminate uncertainties that have previously stifled innovation. Meanwhile, Hong Kong officially opened stablecoin license applications on August 1, with its 'high and narrow' standards aimed at ensuring a robust and orderly market launch.
Deeper transformations are quietly occurring in the core of traditional finance. JPMorgan has included USDC in its credit card rewards system for 80 million users, while PayPal is using stablecoins to settle over a hundred types of tokens directly to merchant accounts.
These traditional giants are accelerating the integration of blockchain technology into their core payment processes, signaling the imminent arrival of a new global financial infrastructure era built on stablecoins.
Market Overview and Growth Highlights
The total market value of stablecoins reached $266.99 billion, with a week-on-week increase of $1.776 billion. In terms of market dynamics, USDT continues to maintain a dominant position, accounting for 61.67%; USDC ranks second, with a market value of $63.683 billion, accounting for 23.85%.
Top three blockchain networks by stablecoin market capitalization:
1. Ethereum: $133.276b (133.3 billion USD)
2. Tron: $82.876b (82.9 billion USD)
3. Solana: $11.418b (11.4 billion USD)
Top 3 fastest-growing networks of the week:
1. TON: +17.40% (USDT share 80.52%)
2. Cardano: +11.84% (USDM share 32.05%)
3. Sui: +10.94% (USDC share 59.71%)
Data from DefiLlama
The US releases a digital asset strategic report: stablecoin priority, DeFi compliance, and self-custody included in national strategy
This week, the US digital asset regulation has seen significant changes. The White House released the (Digital Asset Strategic Report), a 168-page document covering key issues such as the banking system, stablecoins, tax policies, illicit finance, and strategic reserves, with a very clear core signal: the US will gradually step away from the 'Operation Choke Point 2.0' style suppression path and turn to legislation such as the (GENIUS Act) to promote a dollar-dominated on-chain financial system, supporting compliant infrastructures represented by stablecoins.
The regulatory stance towards DeFi protocols and self-custody tools has also undergone significant changes. The report first proposed establishing a Bank Secrecy Act (BSA) exemption mechanism for 'technology issuers', clearly distinguishing them from 'financial intermediaries'. This legal identity definition marks the regulatory willingness to include non-custodial development activities within clear compliance boundaries, reducing developer risks and laying the foundation for the US to reclaim its dominance in on-chain financial technology.
The SEC is simultaneously launching 'Project Crypto', led by Chairman Paul Atkins, covering three key areas: establishing clear asset classification standards, safeguarding users' self-custody rights, and promoting the integration of platform-based crypto applications under a unified regulatory framework, including staking, lending, and trading services. This shift indicates that the SEC is moving from enforcement-based regulation to institutional regulation, providing platforms with business expansion space under compliance.
To reduce industry uncertainty, the report proposes several clear guidelines at the tax level, including accounting and tax treatment recommendations for mining, staking, NFTs, charitable donations, and suggests reviewing the applicability of the Corporate Alternative Minimum Tax (CAMT) in the use of digital assets to simplify the tax barriers of on-chain payments. It emphasizes that regulatory focus should shift to 'addressing real risks and incentivizing compliant participation', vigorously promoting regulatory sandboxes and safe harbor mechanisms to open trial pathways for compliant innovation.
Stablecoins are integrating into the US banking infrastructure, signaling a restructuring period for the traditional financial system
Coinbase and JPMorgan establish a partnership, opening three types of on-chain access paths for its 80 million+ customers: purchasing crypto assets using Chase credit cards, redeeming Ultimate Rewards points for USDC on the Base chain, and direct linking of bank accounts. This is the first time a mainstream bank points system has been integrated with on-chain assets, signifying the entry of stablecoins into the US consumer finance infrastructure, lowering the operational barrier for traditional users to enter the crypto world.
This collaboration reshapes the boundaries between loyalty points systems and on-chain assets. Chase transforms its originally closed, low-liquidity credit card points into USDC that can circulate on-chain, creating a 'bank-native crypto layer' with programmability and asset interconnectivity. For users, the pathway to obtaining crypto assets is increasingly embedded in everyday consumption behavior; for banks, it represents a highly sticky way to actively construct an on-chain liquidity network without altering existing financial structures.
Zooming out, JPMorgan's embrace of crypto assets reflects the systemic acceptance of stablecoins and on-chain finance within the US banking system. On one hand, leading banks are deepening their on-chain positioning through self-built stablecoins and native services (such as JPM Coin and on-chain collateralized lending); on the other hand, smaller banks rely on core system transformations by technology integrators like FIS and Fiserv, quickly achieving access and settlement for stablecoins using APIs and custody services provided by Circle; meanwhile, Visa is also empowering banks to issue and manage on-chain assets through VTAP, promoting their transformation from traditional funding intermediaries to asset issuance nodes.
With the compliance framework established and technological services matured, banks will transform into infrastructure entry points for the large-scale distribution of on-chain assets, leading to industry restructuring around this role, with card organizations expanding underlying token issuance capabilities, technology service providers connecting on-chain assets with banking systems, while banks shift from passive network access to actively defining the entry points for on-chain assets.
PayPal launches 'Pay with Crypto', a crypto reconstruction of the traditional four-party payment system
PayPal is reconstructing the underlying logic of the global payment network. The newly launched 'Pay with Crypto' service supports more than 100 mainstream cryptocurrencies and wallets like Coinbase, MetaMask, and OKX, allowing users to initiate payments with any token and instantly convert it to PYUSD in the background for settlements in dollars to merchants. The fee is only 0.99%, far lower than credit card cross-border fees. This 'frontend open, backend anchored' design allows users to maintain payment freedom with their crypto assets while using stablecoins to ensure the speed and predictability of dollar settlements, marking the first seamless integration of on-chain payments into standard business processes.
Following the opening of the global fiat currency network 'PayPal World', 'Pay with Crypto' will incorporate on-chain assets into this unified account system, making cryptocurrencies a standardized payment medium. At its core, it is about restructuring the payment stack, driven by the PYUSD stablecoin to facilitate low-friction exchanges and standardized settlements, while relying on a closed-loop management of the account system to integrate fiat and crypto assets into the same clearing path, gradually forming its own 'PayPal settlement network.'
This architecture deconstructs and re-combines the traditional four-party payment model. Users initiate payments directly from their wallets, with funds settling instantly, no longer relying on card issuers and card organization authorizations to pre-finance. The original revenue model based on credit and fees is being eroded. PayPal's value capture shifts from interchange fees to internal service fees and asset management: including instant conversion of crypto assets, stablecoin minting/redeeming, on-chain treasury management, and API access. This transformation enables PayPal to evolve from 'participant in the payment network' to 'designer of fund flow paths.'
For merchants, this means a sharp drop in cross-border rates, instant fund transfers, and access to a new market of 650 million crypto users; for consumers, while losing the advance feature of credit cards, they gain low-cost payments and asset flexibility. Looking ahead, PayPal is centralizing stablecoins to redefine the role of credit cards, reorganizing value chains around on-chain processes, attempting to dominate the clearing logic and profit models of the next generation of payment order.
Market Adoption
FIS and Circle collaborate to launch bank stablecoin payment services
Key Points Overview
· Fintech giant FIS (Fidelity National Information Services) has partnered with Circle to integrate the USDC stablecoin into FIS's payment hub system;
· This collaboration will enable US banks to offer customers USDC-based domestic and cross-border payment services, expected to launch by the end of the year;
· FIS processes over $10 trillion in transactions annually, this integration has provided Circle with a distribution channel to access thousands of financial institutions, significantly expanding the potential use of USDC.
Why It Matters
· This collaboration marks the transition of stablecoins from 'fringe innovation' to the infrastructure of financial services. Following the introduction of US stablecoin legislation and FIS competitor Fiserv's announcement of launching its own stablecoin FIUSD, this move further confirms traditional financial giants' recognition of stablecoins' value. As a banking technology provider, FIS's involvement will significantly accelerate the integration and application of stablecoins in the traditional banking system, paving the way for their widespread adoption.
JPMorgan collaborates with Coinbase to open the crypto world to 80 million customers
Key Points Overview
· JPMorgan and Coinbase have reached a groundbreaking collaboration to provide convenient crypto acquisition channels for its 80 million bank customers, starting in the fall of 2025, customers will be able to purchase crypto assets directly on Coinbase using JPMorgan credit cards;
· In 2026, JPMorgan's ultimate rewards points will support a conversion of 100 points to 1 dollar USDC for the first time, with conversions taking place on Coinbase's Base chain, transforming traditional bank points into on-chain liquidity assets;
· The collaboration will directly link JPMorgan accounts with Coinbase, providing customers with a seamless crypto asset purchasing experience and lowering the entry barrier for ordinary consumers into the crypto world.
Why It Matters
· This collaboration marks a shift in the attitude of the largest US bank towards cryptocurrency from criticism to active embrace, serving as a milestone in the integration of traditional finance and the crypto ecosystem. USDC has been selected as the crypto reward for point redemption, confirming its status as a 'bridge currency' connecting traditional finance with the crypto world. Traditional payment models are being progressively 'transformed' rather than instantly 'broken'—financial giants are integrating the on-chain liquidity and programmability of crypto assets, turning closed, low-liquidity points systems into open, high-liquidity digital assets, positioning themselves for the future financial system. This move will significantly accelerate user growth on the Base network and the mainstream application of USDC, having profound implications for the entire crypto ecosystem.
Macro Trends
Tether released Q2 financial report: net profit of $4.9 billion, $4 billion invested in US projects
Key Points Overview
· USDT stablecoin issuer Tether International achieved a net profit of $4.9 billion in Q2, of which $3.1 billion came from recurring profits, and $2.6 billion from appreciation in gold and bitcoin prices;
· The company holds over $162.5 billion in reserve assets, corresponding to $157.1 billion in liabilities (issued USDT), with an excess reserve of $5.4 billion, among which Bitcoin holdings worth $8.9 billion (approximately 83,200 coins);
· Tether's exposure to US Treasury bonds exceeds $127 billion, with USDT supply increasing by $13 billion this quarter, the company has invested about $4 billion in US projects in AI, renewable energy, and digital communications.
Why It Matters
· With the passage of the GENIUS Act, stablecoins are rapidly integrating into the broader financial infrastructure. Tether, as the largest stablecoin issuer, has stated that it will comply with new regulations and issue an onshore version of its stablecoin. With reserves exceeding $162.5 billion and significant holdings in US Treasury bonds, Tether has become an important dollar financial instrument. The company is heavily investing its profits into strategic US industries, including XXI Capital bitcoin treasury company, Rumble video platform, and crypto wallet development, indicating that the stablecoin giant is actively seeking to transform into a compliant financial institution within a regulatory framework while expanding its business into broader technological and financial domains.
Deloitte: 40% of CFOs in billion-dollar companies plan to adopt crypto payments within two years
Key Points Overview
· Deloitte's latest survey shows that 99% of CFOs expect to use cryptocurrency for business functions in the long term, with respondents from North American companies with annual revenues of at least $1 billion;
· 23% of CFOs indicated their financial departments will use cryptocurrency for investment or payment in the next two years, with this figure approaching 40% among large enterprises with annual revenues over $10 billion;
· Despite 43% of CFOs still worrying about price volatility, 15% of respondents expect their financial departments to purchase non-stable cryptocurrencies as part of their investment strategy within the next 24 months.
Why It Matters
· Under the backdrop of Trump's order to establish a strategic bitcoin reserve and the GENIUS Act providing regulatory clarity, corporate acceptance is gradually increasing. At the time of the Deloitte report's release, dozens of publicly listed companies have begun reserving cryptocurrencies such as Bitcoin, Ethereum, and Solana. CFOs of companies with annual revenues over $10 billion are more active, with nearly a quarter (24%) indicating they will invest in non-stable cryptocurrencies in the next two years, showing a fundamental shift in institutional attitudes towards digital assets, with corporate finance departments moving from observation to action.
New Product Dispatch
Interactive Brokers is considering issuing its own stablecoin to reshape the flow of funds in brokerage accounts
Key Points Overview
· Interactive Brokers (IBKR) is assessing the feasibility of issuing its own stablecoin for instant customer account top-ups, asset transfers, and 24/7 settlements, aiming to enhance fund flow efficiency;
· The company is exploring two paths: issuing a proprietary stablecoin or being compatible with third-party stablecoins (such as USDC, PYUSD), aiming to connect brokerage accounts with crypto assets;
· IBKR has 3.87 million client accounts (up 32% year-on-year), with its stock rising 47% this year, this move is an extension of its digital finance strategy, following previous collaborations with Paxos and the launch of the prediction market platform ForecastEx.
Why It Matters
· Interactive Brokers, as a traditional brokerage, entering the stablecoin sector marks an acceleration in the digital transformation of financial infrastructure. Its plans will fundamentally change the logic of fund scheduling in brokerage accounts, evolving from 'T+1/T+2' to 'instant settlement', not only challenging crypto-native platforms like Coinbase but also signaling a paradigm shift in the clearing system from 'transaction time-driven' to 'account status-driven'. This move reflects the recognition of blockchain technology's value in fund flow efficiency by large financial institutions, indicating that the regulatory environment is gradually accepting stablecoins into the compliant financial system.
Blockchain infrastructure Alchemy upgraded the 'Cortex Engine', enhancing stablecoin transaction speeds by 66%
Key Points Overview
· Alchemy launched the 'Cortex Engine' architecture, reducing blockchain API response times from 300-400 milliseconds to under 50 milliseconds, achieving a 66% reduction in transaction latency;
· As 'Crypto AWS', Alchemy provides infrastructure support for most stablecoin issuers (like Paxos, Circle), this upgrade will directly enhance stablecoin transaction speeds;
· The new architecture achieves throughput of hundreds of thousands of requests per second, with individual blockchain node throughput increasing by 1000 times, nearing the processing capacity of large traditional payment systems;
Why It Matters
· Stablecoin transaction volumes have become comparable to international payments by Visa and Mastercard, but speed has always been a shortcoming. Alchemy's upgrade has reduced blockchain response times to below 100 milliseconds (the threshold for human perception delay is about 200 milliseconds), enabling stablecoin payment experiences to finally rival traditional payment systems. As a key infrastructure provider connecting decentralized applications, Alchemy supports large institutions including Coinbase, Stripe, and JPMorgan, and this performance enhancement will have a broad impact on the Web3 ecosystem, removing technical barriers for the further expansion of stablecoins in the global payments market.
MetaMask launches the 'Stablecoin Earn' feature, allowing users to earn yields directly in their wallets
Key Points Overview
· MetaMask officially launched the 'Stablecoin Earn' feature, allowing users to deposit mainstream stablecoins like USDT, USDC, and DAI directly in the wallet front end;
· This feature is supported by the well-known DeFi protocol Aave, allowing users to automatically earn stablecoin yields through this feature;
· Deposits are not subject to lock-up restrictions, allowing users to withdraw funds at any time, lowering the entry barrier for DeFi participation.
Why It Matters
· This marks the largest Web3 wallet MetaMask beginning to directly integrate yield products, bringing DeFi functionalities to the wallet interface and significantly simplifying the process for ordinary users to participate in DeFi. By collaborating with Aave, MetaMask ensures product security while lowering the learning curve for users, potentially attracting more traditional users to try crypto asset yield management, promoting the practicality of DeFi.
Routable partners with Brale to launch a global stablecoin payment system
Key Points Overview
· Payment platform Routable announced a partnership with Brale to integrate stablecoin payments into its existing AP (Accounts Payable) automation system, alongside traditional payment methods like ACH;
· This collaboration allows Routable customers to access stablecoins issued by Brale, Circle, and Paxos, supporting 19 blockchain networks, including Ethereum, Solana, Base, Canton, and more;
· Enterprises can easily select blockchain networks through API variables without additional technical integration, facilitating payments in over 220 countries and regions with more than 140 currencies.
Why It Matters
· This collaboration marks the acceleration of stablecoins into the corporate payments sector, seamlessly integrating blockchain payment functionalities with traditional enterprise financial software. By supporting multiple chains and various stablecoin issuers, Routable's partnership with Brale breaks down barriers between blockchain ecosystems, providing flexible options for enterprises and enabling instant payments globally, showcasing the immense potential of stablecoins as cross-border payment infrastructure.
Cash App launched the Pools feature, simplifying group payment processes
Key Points Overview
· Cash App officially launched the Pools group payment feature, allowing users to create funding pools for group payments, supporting internal transfers within Cash App as well as external payments via Apple Pay and Google Pay;
· The new feature addresses the pain point of group fundraising participation for 60% of American adults, relieving individual pre-financing pressure, supporting the setting of target amounts, tracking progress, and real-time understanding of contributions;
· The feature is currently open to some users and will be promoted to all 57 million monthly active users in the coming months, marking the beginning of Cash App's transformation towards social finance management.
Why It Matters
· The Pools feature caters to the trend of young users viewing fund management as a social experience, effectively connecting Cash App's existing banking and payment tool ecosystem. By simplifying group payment processes and integrating mainstream payment methods, Cash App has strengthened its position as a comprehensive financial platform while tapping into the enormous market of group financial management. This product strategy reflects the industry's trend of payment platforms evolving from mere transactional tools into social financial collaboration platforms.
SoFi CEO announces crypto expansion plans, launching staking, lending services, and stablecoins
Key Points Overview
· After a strong earnings report, SoFi CEO Anthony Noto announced a full-scale expansion of the crypto business, planning to increase hiring and offer customers crypto asset-backed lending and staking services;
· SoFi, as the largest online lending institution in the US, plans to relaunch cryptocurrency spot trading services by the end of the year, allowing users to buy and sell digital tokens like Bitcoin and Ethereum;
· Noto stated that SoFi's advantage of having a banking license allows it to launch stablecoins earlier than competitors, as the OCC (Office of the Comptroller of the Currency) has permitted banks to issue stablecoins, while the rulemaking required by the GENIUS Act will take 12-18 months.
Why It Matters
· SoFi's crypto expansion signifies the acceleration of the integration of traditional finance and digital assets, and its banking license advantage may give it a competitive edge in the stablecoin sector. As traditional banks like JPMorgan and Bank of America also express interest in blockchain payments and stablecoins, fintech companies are actively capturing market share. SoFi's comprehensive layout reflects the strategic importance of crypto assets in the banking industry, providing users with more diversified digital asset services while also representing a significant trend in the digital transformation of financial services.
Visa expands its stablecoin settlement platform, adding support for Stellar, Avalanche, and three other stablecoins
Key Points Overview
· Visa announced that its stablecoin settlement platform will add support for PayPal USD (PYUSD) and Global Dollar (USDG) through a collaboration with Paxos, while also adding the euro stablecoin EURC issued by Circle;
· The blockchain support range extends from Ethereum and Solana to Stellar and Avalanche, achieving settlement capabilities for four stablecoins across four blockchains;
· This expansion enables partners to perform stablecoin settlements in both dollar and euro, reducing friction costs for wallets and developers.
Why It Matters
· As a traditional payment giant, Visa has been exploring USDC settlements since 2020, and this expansion of multi-currency, multi-chain platforms marks a comprehensive upgrade of its crypto strategy. As payment providers, fintech companies, and banks seek faster cross-border transaction solutions, stablecoins are gaining widespread adoption. Rubail Birwadker, Visa's head of global growth products and strategic partnerships, stated: 'When stablecoins are trustworthy, scalable, and interoperable, they can fundamentally change the way money moves globally.' This move will accelerate the adoption of stablecoins in mainstream payment sectors, extending blockchain-based stablecoin payments from the crypto vertical to a broader global payments market.
Clearpool launched payment financing services, pioneering the yield-bearing stablecoin cpUSD
Key Points Overview
· Decentralized lending platform Clearpool launches stablecoin credit pools for payment finance (PayFi), providing short-term financing solutions for fintech companies involved in cross-border remittances and card transaction processing.
· The newly launched yield token cpUSD is supported by PayFi vaults and liquidity stablecoins, with yield sourced from actual payment flows rather than speculative crypto activities;
· Clearpool has provided over $800 million in stablecoin credit to institutional borrowers, focusing on addressing liquidity gaps caused by the timing differences in fiat and stablecoin settlements.
Why It Matters
· Clearpool's new product highlights the core role of stablecoins in global payment infrastructure. CEO Jakob Kronbichler pointed out: 'What many overlook is that while stablecoins can settle instantly, fiat cannot, which forces fintech companies to pre-finance liquidity to bridge this gap.' Especially in emerging markets where traditional banking channels are slow or costly, the PayFi pool will provide institutions with short-term credit cycles of 1-7 days to meet liquidity needs prior to fiat settlement. cpUSD ties DeFi yields to actual payment demands, providing holders with a stable income source driven by real payment business rather than speculative cycles, representing a significant expansion of DeFi into broader financial services.
Capital Layout
JPMorgan: Coinbase will receive about $300 million in distribution fees from Circle in Q1 2025
Key Points Overview
· JPMorgan's report shows Coinbase will receive about $300 million in distribution payments from Circle in Q1 2025, exceeding Circle's own net income of $230 million;
· Coinbase holds Circle shares worth $1.6 billion, but greater value comes from the USDC ecosystem: the $13 billion USDC balance on the platform generates $125 million in revenue, while revenue sharing from the Reserve Fund brings in $170 million with nearly 100% profit margins;
· JPMorgan estimates the economic value related to Circle could be as high as $55-60 billion for Coinbase shareholders, believing the market may have underestimated the strategic importance of the USDC ecosystem.
Why It Matters
· This reveals that the business model of mainstream crypto exchanges leveraging stablecoin ecosystems to achieve high profitability is maturing. As a distributor of USDC, Coinbase not only generates direct high-profit income but also promotes user growth, with incentives provided by Circle allowing Coinbase to attract customers at zero or negative costs. This case indicates that stablecoins are not just transactional mediums but have become a core source of revenue for crypto platforms, suggesting that the stablecoin economy will become a key driver of crypto enterprise valuations.
Yuan Coin Technology secures $40 million in financing, led by ZhongAn International and others Key Points Overview
· The stablecoin infrastructure company Yuan Coin Technology completed nearly $40 million in Series A2 funding, led by ZhongAn International, Central Bay International, Brilliant Investments, and Hivemind Capital, with Sequoia China participating;
· The company has signed a strategic cooperation memorandum with ZhongAn Bank to explore the application of stablecoins in compliant financial services, having previously participated in the Hong Kong Monetary Authority's stablecoin sandbox pilot;
· Yuan Coin Technology previously launched the HKDR stablecoin pegged 1:1 to the Hong Kong dollar and completed a $7.8 million Series A1 funding round last September, demonstrating continuous fundraising capability.
Why It Matters
· This round of funding reflects Hong Kong's active efforts to build a compliant stablecoin ecosystem, with participation from institutions like ZhongAn Bank indicating an acceleration of the integration between traditional finance and blockchain technology. Yuan Coin Technology, as a pilot participant of the Hong Kong Monetary Authority, has its HKDR stablecoin poised to become an important financial infrastructure under the virtual asset regulatory framework in Hong Kong, strategically significant for promoting Hong Kong as a major cryptocurrency center in Asia.
Zodia Markets raised $18.25 million in Series A funding, backed by Circle Ventures, to expand stablecoin payment infrastructure
Key Points Overview
· Zodia Markets completed a $18.25 million Series A funding round, led by Pharsalus Capital, with Circle Ventures and others participating; the funds will be used to accelerate international expansion and stablecoin payment solutions;
· Since its establishment in 2021, the company has received support from Standard Chartered Bank's innovation division SC Ventures and leading Asian digital asset company OSL Group, establishing a leading position in cross-border stablecoin liquidity;
· Zodia Markets currently supports over 20 fiat currencies and more than 70 digital assets (including USD and non-USD stablecoins), focusing on providing real-time wholesale trading, settlement, and cross-border fund flow services for institutions.
Why It Matters
· This funding highlights the deepening trend of integration between traditional banks and crypto infrastructure. As a digital asset platform supported by Standard Chartered Bank, Zodia Markets is reshaping the cross-border payment model between institutions through stablecoins, with Circle Ventures' investment further validating its strategic position in institutional-level stablecoin infrastructure. The platform combines traditional forex capital flows with real-time stablecoin settlements, representing a shift of global banks beginning to incorporate stablecoins as part of their core payment infrastructure, driving the digital transformation of wholesale banking.
Stable secured $28 million in seed funding, developing a payment blockchain based on USDT
Key Points Overview
· Stable completed a $28 million seed round funding, led by Bitfinex and Hack VC, with Franklin Templeton, Castle Island Ventures, and KuCoin Ventures participating;
· This blockchain project uses USDT as a fuel token, aiming to achieve a fast, low-cost, and stable digital payment infrastructure;
· Stable has joined the stablecoin blockchain race, a field already featuring projects like Plasma, which recently raised $373 million for its stablecoin network.
Why It Matters
· The stablecoin market has grown to a market capitalization of $273 billion, with USDT and USDC dominating, while demand for blockchain infrastructure optimized for stablecoin payments is increasing. Stable is backed by angel investors including Tether CEO Paolo Ardoino, indicating strong interest in blockchain solutions designed specifically for stablecoin transactions. The investment from traditional financial institution Franklin Templeton shows that institutional capital is accelerating into the stablecoin infrastructure sector, further driving the application of stablecoins in global payments and settlement systems.
Regulatory Compliance
Hong Kong's stablecoin regulation has taken effect, with dozens of institutions indicating they will apply for licenses
Key Points Overview
· (Stablecoin Regulation) officially took effect on August 1, with the Monetary Authority opening the application window until September 30, with the first licenses expected to be issued early next year;
· Standard Chartered's CEO for Hong Kong and Greater China confirmed that the group is studying documents and exploring application scenarios, aiming to submit a stablecoin license application as soon as possible;
· According to incomplete statistics, dozens of institutions have indicated they will apply for licenses, including JD Coin Chain Technology, Yuan Coin Innovation, Standard Chartered Bank, Ant Group, Hong Kong Telecom, and others;
· Meanwhile, more local banks, technology companies, and Web3 teams are preparing further around clearing systems, custody mechanisms, and payment interfaces.
Why It Matters
· The Hong Kong Monetary Authority emphasizes that the thresholds for stablecoin licensing are very high, with only a few licenses expected to be issued initially, and licensed institutions must meet compliance, specificity, and sustainability requirements. This move marks Hong Kong's transition from sandbox testing to a formal regulatory framework, which will attract traditional banks, technology companies, and Web3 teams to lay out stablecoin operations, strategically significant for Hong Kong to strengthen its position as an international financial center.
US SEC Chairman Atkins: 'Most cryptocurrencies are not securities'
Key Points Overview
· SEC Chairman Paul Atkins announced the launch of the 'Project Crypto' initiative, aiming to rapidly implement the new crypto policies urged by President Donald Trump, modernizing securities rules to accommodate crypto assets, explicitly refuting former SEC Chairman Gensler's views;
· Atkins emphasized 'most cryptocurrencies are not securities' and instructed SEC staff to draft clear and simple rules for the distribution, custody, and trading of cryptocurrency assets;
· The SEC will provide 'tailored disclosure requirements, exemptions, and safe harbors' for crypto securities, including ICOs, airdrops, and network rewards, and will support self-custody wallets and 'super apps' for one-stop services.
Why It Matters
· This signifies a major shift in the philosophy of US crypto regulation, with Atkins clearly supporting Trump's goal of establishing a 'Crypto Golden Age', which will attract crypto businesses that had fled the US back. The SEC's new policy will allow broker-dealers to offer trading in multiple assets on a single platform without multiple licenses, while also providing protections for software developers. This significant policy shift heralds a fundamental change in the US crypto regulatory landscape, potentially bringing certainty to the market and fostering innovation.
Germany's AllUnity launched the first euro stablecoin EURAU under BaFin regulation
Key Points Overview
· The EURAU stablecoin launched by AllUnity, a joint venture of DWS, Galaxy, and Flow Traders, becomes Germany's first euro stablecoin compliant with MiCAR regulations, receiving an electronic money license from Germany's BaFin;
· EURAU, issued as an Ethereum ERC-20 token, is primarily aimed at financial institutions, fintech companies, and corporate clients needing regulated, instant cross-border euro payments, with the European Banking Union as the reserve custodian;
· This stablecoin will be launched on the BaFin-regulated digital asset exchange Bullish Europe, with the first trading pairs including BTC/EURAU and USDC/EURAU, with market-making services provided by Flow Traders.
Why It Matters
· The launch of EURAU marks an important milestone in the European regulated stablecoin market. Supported by renowned institutions such as BitGo, Metzler Bank, and Fireblocks, this stablecoin demonstrates the broad trend of embedding regulatory-compliant stablecoins into European financial infrastructure. AllUnity CEO Alexander Höptner called this an important step towards 'financial sovereignty' for digital Europe, indicating that the EU is establishing a euro digital payment system independent of dollar stablecoins to provide payment solutions that comply with local regulations for European financial institutions.
The Bank of Korea has established a digital asset department in response to the momentum of domestic stablecoin development
Key Points Overview
· The Bank of Korea (BOK) has newly established a virtual asset department responsible for monitoring the crypto market and leading internal discussions on the Korean won stablecoin, with the department set up under the Financial Payment Systems Bureau;
· The central bank also renamed the 'Digital Currency Research Team' to the 'Digital Currency Team', indicating a shift from theoretical exploration to more proactive digital currency practices.
· South Korea's newly elected president Lee Jae-myung promised to promote the development of a domestic currency stablecoin market to prevent capital outflow, with ruling party lawmakers having submitted a bill to establish a regulatory framework for the Korean won stablecoin.
Why It Matters
· The Bank of Korea's move marks a shift in the global central banks' stance towards stablecoins, from caution to active participation. In the context of the US government supporting dollar stablecoins, the Korean government and financial institutions are rapidly acting to prevent capital outflow and dollarization. The Korean government's decision to pause the CBDC project in favor of stablecoins reflects the Asian financial center's search for a balance between central bank digital currencies and private sector stablecoins, which will accelerate the formation of the Asian stablecoin ecosystem.
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