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Weekly Global Stablecoin & CBDC Update
This Week’s Stories (So Far)
- US Crypto Week
- ECB Speech Calls for Swift Digital Euro Legal Framework
- BoE Governor Warns Banks
- GENIUS Act Analysis
- European Parliament to Discuss Digital Euro
- New Daily Stablecoin Settlement King
- Stablecoin Still Far From Mainstream
- GENIUS Act Stalled
- Citi to Launch Own Stablecoin?
- Snail Games Explored USD Stablecoin
- HM Treasury Publishes New Policy Paper
- Stablecoins Could Reshape US Treasury Markets
The U.S. House of Representatives officially launched “Crypto Week” on July 14, 2025, marking a historic moment for digital asset regulation. During this week-long initiative, lawmakers will vote on three landmark bills: the CLARITY Act to establish regulatory frameworks for digital assets, the GENIUS Act to create federal stablecoin regulations, and the Anti-CBDC Surveillance State Act to permanently ban a U.S. central bank digital currency. The GENIUS Act, having already secured bipartisan support in the Senate, is anticipated to proceed to a vote on Thursday morning. Meanwhile, the CLARITY Act is scheduled for a floor vote on Wednesday. If passed, the GENIUS Act would immediately go to President Trump’s desk for signature, potentially becoming the first major crypto regulatory law in U.S. history. The initiative represents Congress’s coordinated effort to establish America as the “crypto capital of the world” while providing regulatory clarity for the rapidly growing digital asset ecosystem.
Key Takeaways:
- House officially designates July 14-18, 2025 as “Crypto Week” for historic digital asset legislation
- Three major bills under consideration: CLARITY Act (Wednesday), GENIUS Act (Thursday), and Anti-CBDC Act
- GENIUS Act has already passed Senate 68-30 and would go directly to President Trump if House approves
- Represents most comprehensive federal crypto regulatory effort in U.S. history
- Aims to establish America as global leader in digital asset innovation and regulation
Why It Matters:
- Could provide long-awaited regulatory clarity that has hindered institutional crypto adoption
- Demonstrates bipartisan momentum for cryptocurrency legislation after years of regulatory uncertainty
- May influence global digital asset regulatory standards and international competitiveness
- Shows prioritization of private stablecoins over government-issued CBDCs in U.S. policy framework
- Could accelerate mainstream adoption of digital assets through clearer legal frameworks
European Central Bank Executive Board member Piero Cipollone addressed the European Parliament’s Committee on Economic and Monetary Affairs on July 14, 2025, urging lawmakers to expedite the digital euro’s legal framework. Cipollone emphasized that the digital euro’s primary purpose is to preserve cash benefits in the digital era by providing a digital form of central bank money. He warned that Europeans increasingly lack access to central bank money for digital transactions, which reduces payment system resilience, competition, and monetary sovereignty. The ECB executive stressed that this limitation ultimately restricts consumers’ freedom to choose how they pay. Cipollone argued that the digital euro would complement physical cash rather than replace it, addressing the growing digital payment needs while maintaining the euro’s legal tender status. The statement comes as the ECB continues its preparation phase for the digital euro project, with legislation needed before the Governing Council can make a final launch decision.
Key Takeaways:
- ECB Executive Board member urges European Parliament to accelerate digital euro legislation
- Digital euro positioned as necessary to preserve cash benefits in digital transactions
- Emphasis on maintaining monetary sovereignty and consumer payment choice
- Europeans currently lack access to central bank money for digital payments
- Digital euro would complement, not replace, physical cash
Why It Matters:
- Highlights urgency of European digital currency development amid global CBDC competition
- Demonstrates ECB’s commitment to maintaining monetary sovereignty against private digital currencies
- Shows European response to growing digitalization of payment systems
- Indicates potential timeline acceleration for digital euro implementation
- Reflects broader central bank concerns about losing monetary control to private payment systems
Bank of England Governor Andrew Bailey warned major global banks against issuing their own stablecoins in an interview published July 13, 2025, creating potential tension with President Trump’s administration’s pro-stablecoin stance. Bailey favored tokenized deposits over stablecoins. Tokenized deposits are digital forms of conventional bank money, unlike stablecoins, which necessitate ring-fenced reserves that cannot be utilized for lending. He warned that widespread stablecoin adoption could drain deposits from the banking system, reducing funds available for credit provision and potentially threatening financial stability. Bailey emphasized concerns about stablecoins’ impact on monetary policy transmission and the “singleness of money” principle. His position contrasts sharply with U.S. policy direction, where the GENIUS Act aims to enable broader stablecoin adoption. The governor’s comments reflect broader European regulatory caution toward private digital currencies, with both the UK and EU taking more restrictive approaches compared to the U.S. embrace of stablecoin innovation.
Key Takeaways:
- Bank of England Governor warns banks against issuing private stablecoins
- Prefers tokenized deposits that support lending over ring-fenced stablecoin reserves
- Concerns about stablecoins draining bank deposits and reducing credit availability
- Emphasizes risks to monetary policy transmission and financial stability
- Creates potential policy divergence with Trump administration’s pro-stablecoin stance
Why It Matters:
- Highlights growing global divide in stablecoin regulatory approaches
- Demonstrates central bank concerns about private digital currencies threatening traditional banking
- Shows tension between innovation and financial stability in digital asset regulation
- May influence other central banks’ positions on stablecoin development
- Reflects broader debate about role of private vs. public digital money
CNBC published an analysis on July 14, 2025, examining the potential impact of the GENIUS Act on cryptocurrency markets and investors as the House prepares to vote during “Crypto Week.” The analysis highlighted how the legislation could enhance mainstream stablecoin adoption by establishing clear regulatory frameworks and fostering market confidence. Currently dominated by Tether’s USDT and Circle’s USDC in what analysts describe as a “duopoly,” the stablecoin market could see increased competition as the GENIUS Act creates pathways for banks and other institutions to issue regulated stablecoins. The analysis noted that major banking institutions are preparing to launch their own stablecoins, potentially disrupting the existing market structure. While not all new entrants may succeed, the regulatory clarity could provide consumers with more choices and better-suited stablecoin products. The legislation’s emphasis on full dollar backing, audit requirements, and transparency measures could increase institutional confidence in stablecoin adoption for payments and financial services.
Key Takeaways:
- GENIUS Act could break current USDT-USDC duopoly in stablecoin market
- Banking institutions preparing to launch regulated stablecoins
- Regulatory clarity expected to increase institutional confidence and adoption
- Legislation emphasizes full dollar backing, audits, and transparency requirements
- Could provide consumers with more stablecoin choices and better-suited products
Why It Matters:
- Shows potential market transformation from regulatory clarity
- Demonstrates institutional interest in entering regulated stablecoin space
- Highlights competitive dynamics that may emerge from federal oversight
- Indicates pathway for mainstream financial institutions to adopt blockchain technology
- Reflects growing recognition of stablecoins’ role in future payment systems
The European Parliament’s Committee on Economic and Monetary Affairs (ECON) published its agenda for July 14-15, 2025, meetings, which included discussions on digital euro developments as part of its ongoing deliberations. The committee meetings, held in Brussels, addressed various monetary policy and financial system issues, including updates on the European Central Bank’s digital euro project. The agenda reflects the European Parliament’s continued engagement with digital currency policy as legislators work on the legal framework necessary for potential digital euro implementation. The timing coincides with increased global focus on central bank digital currencies and regulatory frameworks for digital assets, as demonstrated by simultaneous developments in the United States during “Crypto Week.” The committee’s discussions represent part of the broader European legislative process needed to enable the ECB’s Governing Council to make final decisions on digital euro launch, following completion of the current preparation phase.
Key Takeaways:
- European Parliament’s ECON committee agenda included digital euro discussions
- Committee meetings held July 14-15, 2025, in Brussels
- Reflects ongoing European legislative process for digital euro framework
- Timing coincides with global focus on CBDC and digital asset regulation
- Part of broader European response to digital currency developments
Why It Matters:
- Shows European Parliament’s active engagement with digital currency policy
- Demonstrates continued progress on digital euro legal framework development
- Reflects European commitment to maintaining monetary sovereignty in digital age
- Indicates coordination between ECB technical development and legislative processes
- Shows European response to global competition in digital currency development
Tron has emerged as a dominant force in digital payments, surpassing traditional fintech giants PayPal and Stripe in daily stablecoin transaction volume. The blockchain now processes over $21 billion per day, compared to PayPal’s $4.6B and Stripe’s $3.8B. This milestone underscores Tron’s growing role in global finance, particularly in the realm of stablecoins like USDT.
Since its launch, Tron has evolved from a content-sharing platform into a high-performance blockchain supporting over 318 million accounts and handling $19.6 trillion in total on-chain volume. Its architecture, based on Delegated Proof of Stake (DPoS), allows for near-zero transaction fees using bandwidth points instead of gas, making it highly scalable and cost-effective.
Tron’s infrastructure has made it the preferred network for USDT, with $80.7 billion of the stablecoin’s supply hosted on Tron, more than Ethereum. This has positioned Tron as a leader in digital dollar transfers, especially as stablecoins continue to grow in market cap and adoption.
Key Takeaways:
- Tron’s Daily Volume Surpasses Fintech Giants: Tron now processes over $21 billion in daily stablecoin transactions, significantly more than PayPal ($4.6B/day) and Stripe ($3.8B/day).
- Massive On-Chain Activity: Tron has handled $19.6 trillion in total on-chain volume. It supports 318 million+ accounts, with 186 million actively holding TRX. Daily transactions exceed 1 million, mostly driven by USDT (Tether).
- USDT Dominance on Tron: Over $80.7 billion of USDT’s circulating supply is on Tron, compared to $74.8 billion on Ethereum. Tron processes 3x more daily stablecoin volume than Ethereum.
- Low-Cost, High-Speed Architecture:Tron uses a Delegated Proof of Stake (DPoS) model. Transactions are nearly fee-free, using bandwidth points instead of gas fees. This makes it highly scalable and attractive for stablecoin transfers.
- Strategic Evolution: Originally launched in 2017 as a content platform, Tron pivoted to dApps and smart contracts. Acquired BitTorrent in 2018 and transitioned to Tron DAO governance in 2021.
Why it Matters:
- Blockchain vs. Traditional Finance: Tron’s performance highlights how blockchain networks are not just catching up to, but outpacing traditional fintech platforms in certain areas like digital payments.
- Stablecoin Infrastructure: As stablecoins become more central to global finance, Tron’s dominance positions it as a key player in the future of digital money.
- Cost Efficiency: Tron’s near-zero fees and high throughput make it ideal for cross-border payments, remittances, and DeFi applications.
- Adoption Signal: The scale of usage suggests growing institutional and retail trust in blockchain-based financial infrastructure.
Despite the technological promise of stablecoins, such as speed, low cost, and 24/7 availability, Mastercard’s Jorn Lambert argues they are not yet viable for everyday consumer payments. The main barriers are user experience, adoption, and integration into existing financial systems. Mastercard is positioning itself as a bridge between stablecoins and traditional finance, offering infrastructure like global merchant acceptance, security, and compliance. While stablecoins are mostly used for crypto trading today, Mastercard and others (like Visa, PayPal, and Circle) are working to make them more practical for real-world use. However, challenges like conversion costs, regulatory hurdles, and consumer friction remain.
Key Takeaways
- Stablecoin Tech ≠ Payment Readiness: Speed and programmability are not enough; usability, reach, and trust are equally critical.
- Mastercard’s Role as Infrastructure Provider: Mastercard aims to support stablecoins by offering its global network, compliance tools, and merchant access.
- Current Use Case is Mostly Crypto Trading: About 90% of stablecoin volume is tied to crypto markets, not consumer payments.
- Consumer Payments Face Friction: Using stablecoins for everyday purchases is still clunky and lacks a compelling value proposition.
- Stablecoins Seen as Prepaid Cards: They function more like stored-value wallets than dynamic payment tools.
- Regulatory Clarity is Coming: Pending U.S. legislation is drawing more institutional interest and could reshape the landscape.
- Banks Are Watching Closely: Financial institutions are evaluating stablecoins to avoid losing deposits to digital wallets.
- Global Implications: Governments are exploring digital currencies to avoid over-reliance on the U.S. dollar and foster innovation.
Why it Matters
- For Consumers: Stablecoins aren’t ready to replace cards or cash in daily life yet.
- For Businesses: Companies like Mastercard are laying the groundwork for future adoption.
- For Banks: There’s a risk of disintermediation if stablecoins become widely used.
- For Policymakers: Regulation will shape how stablecoins evolve and integrate into the economy.
- For Developers & Startups: There’s opportunity in solving the UX, compliance, and integration challenges.
On July 15, 2025, the U.S. House of Representatives failed to pass a procedural motion needed to advance three key pieces of cryptocurrency legislation during what Republican leaders designated as “Crypto Week.” The vote failed 196-223, with 13 Republicans joining all Democrats in opposition. The stalled legislation includes the GENIUS Act for stablecoin regulation, the CLARITY Act for digital asset market structure, and the Anti-CBDC Surveillance State Act. Conservative Republicans opposed the procedural vote because they wanted the bills combined into a single package rather than considered separately. This opposition came despite President Trump’s public pressure on Republicans to vote yes, reflecting internal GOP divisions over the legislative approach to digital asset regulation.
Key Takeaways:
- House procedural vote failed 196-223 on July 15, 2025, stalling three major crypto bills
- 13 Republicans joined Democrats in opposition despite Trump’s public support
- Conservative Republicans wanted bills combined into single package rather than separate votes
- GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act all affected
- Speaker Johnson indicated plans to continue negotiations and try again
Why It Matters:
- Demonstrates internal Republican divisions despite unified party control of government
- Shows potential challenges in passing Trump’s crypto agenda even with GOP majorities
- Highlights ongoing debate over legislative packaging versus individual bill consideration
- Could delay long-awaited regulatory clarity for digital asset industry
- Reflects broader tensions between procedural approaches and policy outcomes in Congress
Citigroup CEO Jane Fraser announced that the third-largest U.S. bank is contemplating launching its own stablecoin as part of its strategy to enhance digital payment solutions. Speaking to analysts during a post-earnings conference call, Fraser stated that Citi is actively engaged in tokenized deposits and exploring stablecoin reserve management and cryptocurrency custody services. The announcement came after Citigroup reported second-quarter earnings that exceeded Wall Street expectations, with the bank’s stock reaching its highest level since the 2008 financial crisis. Fraser emphasized that tokenized deposits present a valuable opportunity for the institution, reflecting growing institutional interest in blockchain-based financial services and digital asset integration.
Key Takeaways:
- Citigroup CEO Jane Fraser announced consideration of launching bank’s own stablecoin
- Bank actively exploring tokenized deposits, reserve management, and crypto custody services
- Announcement made during post-earnings call after exceeding Wall Street expectations
- Citi stock reached highest level since 2008 financial crisis following earnings report
- Reflects growing institutional adoption of blockchain technology in traditional banking
Why It Matters:
- Shows major traditional bank embracing stablecoin technology for digital payments
- Demonstrates institutional validation of blockchain-based financial services
- Could accelerate mainstream adoption of stablecoins in traditional banking sector
- Reflects competitive pressure from fintech companies and crypto-native firms
- Indicates potential disruption to traditional payment processing systems
Snail Games, a publicly-traded video game studio, announced that it is exploring the development of its own U.S. dollar stablecoin. The company is evaluating technical, legal, and financial aspects of stablecoin issuance and has retained George Cao, founder of crypto exchange AscendEX, as an external consultant. Snail has also engaged a crypto-focused law firm to navigate compliance challenges. The company’s stock jumped 20% on the announcement before closing 8% higher. Co-CEO Hai Shi described the stablecoin exploration as a natural evolution of the company’s innovation strategy, aimed at supporting blockchain-based game economies and player-driven marketplaces while enabling cross-border monetization without traditional payment rails.
Key Takeaways:
- Snail Games exploring U.S. dollar stablecoin development with external crypto expertise
- Company retained AscendEX founder George Cao as consultant and crypto law firm
- Stock jumped 20% on announcement before closing 8% higher
- Initiative supports blockchain-based game economies and player marketplaces
- Represents gaming industry’s growing interest in stablecoin integration
Why It Matters:
- Shows expansion of stablecoin interest beyond traditional financial services
- Demonstrates gaming industry’s exploration of blockchain-based payment solutions
- Reflects growing corporate interest in stablecoins amid regulatory clarity
- Could enable new monetization models for digital entertainment platforms
- Indicates potential for stablecoins in specialized industry applications
HM Treasury published a Policy Paper on Wholesale Financial Markets Digital Strategy, outlining the UK’s approach to driving digitalization across three key areas: market optimisation, market transformation, and technological innovation. The strategy includes commitments to remove paper from UK wholesale markets, drive forward share dematerialisation, and work with industry to identify paper processes for digitization. The government will explore distributed ledger technology (DLT) adoption and artificial intelligence integration to transform financial markets. The policy emphasizes collaboration with the Accelerated Settlement Taskforce and explores more effective wholesale market data sharing. This initiative represents the UK’s comprehensive approach to modernizing financial market infrastructure through digital transformation.
Key Takeaways:
- UK Treasury published comprehensive digital strategy for wholesale financial markets
- Strategy covers market optimization, transformation, and technological innovation
- Commitments include removing paper processes and advancing share dematerialisation
- Focus on distributed ledger technology and artificial intelligence adoption
- Collaboration with industry taskforces for automation and data sharing improvements
Why It Matters:
- Demonstrates UK’s commitment to maintaining competitive position in digital finance
- Shows government-led approach to financial market modernization
- Could influence international standards for digital financial infrastructure
- Reflects growing focus on DLT and AI in traditional financial services
- May accelerate adoption of digital assets in UK financial markets
Standard Chartered’s head of digital assets research, Geoff Kendrick, published an analysis on July 15, 2025, suggesting that stablecoins could begin reshaping U.S. Treasury markets and monetary policy once their market size reaches approximately $750 billion. The current stablecoin market stands at about $240 billion, but Kendrick expects it could more than triple by the end of 2026, driven by new issuers and legislation like the GENIUS Act. He noted growing consensus among industry players that this $750 billion threshold would be the tipping point where stablecoins begin influencing government debt issuance and Treasury market structure through sheer demand. The analysis highlighted that stablecoins require vast quantities of Treasury bills as backing assets, potentially affecting the shape of the U.S. Treasury yield curve.
Key Takeaways:
- Standard Chartered identifies $750 billion as threshold for stablecoin market impact on Treasury markets
- Current $240 billion market could triple by end of 2026 with regulatory clarity
- Stablecoins require large Treasury bill holdings as backing assets
- Could influence government debt issuance patterns and yield curve shape
- Analysis based on meetings with crypto firms, funds, and policymakers
Why It Matters:
- Provides concrete analysis of stablecoin market’s potential macroeconomic impact
- Shows growing recognition of stablecoins’ systemic importance in financial markets
- Highlights connection between crypto adoption and traditional fixed income markets
- Demonstrates institutional research focus on stablecoin market implications
- Could influence policymaker views on stablecoin regulation and oversight
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