TickerTape
Weekly Global Stablecoin & CBDC Update
This Week's Stories (So Far)
A bipartisan House duo comprising Republican Representative Max Miller of Ohio and Democrat Representative Steven Horsford of Nevada has drafted a cryptocurrency tax framework proposal that would provide significant regulatory clarity for digital asset holders. The proposal establishes a tax safe harbor for certain stablecoin transactions and delays taxation on rewards earned through blockchain verification (staking). This framework aims to align the tax treatment of cryptocurrencies with that of traditional securities, addressing long-standing demands from the cryptocurrency sector for legislative clarity on digital asset taxation. The proposal represents a pragmatic approach to tax policy that balances regulatory objectives with industry needs.
Key Takeaways:
- Bipartisan support demonstrates growing congressional consensus on cryptocurrency taxation
- Tax safe harbor would reduce compliance burden for stablecoin users conducting routine transactions
- Staking reward deferral creates incentives for network participation and blockchain infrastructure development
- Framework aligns crypto taxation with traditional securities, reducing regulatory inconsistencies
- Proposal addresses critical gap in tax policy that has hindered mainstream cryptocurrency adoption
Why It Matters:
- Regulatory Clarity: Tax uncertainty has been a significant barrier to institutional adoption of stablecoins; this proposal directly addresses that barrier
- Market Confidence: Clear tax rules would increase confidence among financial institutions and retail users in stablecoin utility for payments
- Competitive Positioning: The U.S. is signaling its commitment to maintaining leadership in digital asset regulation against international competitors
- Payment Infrastructure: Tax-efficient stablecoin transactions make digital currencies more attractive as settlement mechanisms for routine payments
- Economic Impact: Lower tax friction could accelerate stablecoin adoption in cross-border payments and treasury management
The European Central Bank completed its preparatory work on the digital euro, signaling readiness to move forward with rollout pending political action from EU institutions. ECB President Christine Lagarde has shifted focus toward the digital euro implementation phase after resolving monetary policy decisions. The ECB’s preparation includes development of draft digital euro scheme rulebook, selection of service platform providers (DESP), and launch of innovation platform to explore new payment use cases. EU finance ministers have agreed on a roadmap targeting digital euro launch in the second half of 2026, with first issuance targeted for second half of 2026. Each member bank will offer wallets, custody, and related services, enabling instant, low-cost transactions, programmable payments, and 24/7 cross-border settlement.
Key Takeaways:
- ECB completed technical preparation for digital euro; awaiting political approval from EU institutions
- Roadmap targets launch in H2 2026 with first issuance thereafter
- Draft rulebook completed; service platform providers selected
- Innovation platform being used to explore new payment use cases
- Member banks will offer integrated wallet, custody, and related services
Why It Matters:
- Digital euro represents major regulatory milestone demonstrating CBDC viability in developed economies
- Establishes competitive framework for stablecoins and digital payment solutions in Europe
- Confirms ECB commitment to digital euro despite ongoing debate about necessity
- Sets precedent for other central banks considering retail CBDC implementation
- Will provide regulated alternative to private stablecoins for euro-denominated payments
- Accelerates digitalization of euro-zone payments infrastructure and cross-border settlement
SoFi (Social Finance Inc.) announced the launch of SoFiUSD, a fully reserved U.S. dollar stablecoin issued by SoFi Bank, N.A., marking a major institutional entry into stablecoin infrastructure. The stablecoin operates on the Ethereum blockchain and offers fractional-cent pricing with near-instant settlement around the clock. Beyond retail availability for SoFi members, SoFiUSD introduces “Stablecoins as a Service”, a white-label infrastructure platform enabling other banks and fintechs to issue their own branded stablecoins with interoperability to SoFiUSD. This approach directly implements the regulatory framework established by the GENIUS Act and democratizes stablecoin issuance for traditional financial institutions.
Key Takeaways:
- First major bank-issued stablecoin leveraging GENIUS Act framework for regulatory compliance
- “Stablecoins as a Service” model lowers barriers for banking sector to enter stablecoin space
- 24/7 settlement capability addresses critical pain point in existing payment infrastructure
- 100% reserve backing aligns with GENIUS Act requirements and consumer protection standards
- Interoperable architecture enables cross-institutional liquidity and broader ecosystem adoption
Why It Matters:
- Banking Sector Integration: Demonstrates how traditional financial institutions can enter stablecoin markets under clear regulatory framework, accelerating mainstream adoption
- Payment Speed: Near-instant settlement eliminates idle capital costs for enterprises and institutions, improving working capital efficiency
- Regulatory Compliance: SoFi’s infrastructure leverages its national bank charter, providing compliance-first model that other institutions can replicate
- Competitive Threat to Existing Stablecoins: Enterprise-grade infrastructure from regulated bank may shift market share from crypto-native issuers like Tether and Circle
- Financial Inclusion: White-label infrastructure enables smaller banks and fintechs to offer stablecoin services without building proprietary infrastructure
Kontigo, a US-focused stablecoin neobank, announced a $20 million seed funding round to expand operations and geographic reach. The neobank has achieved remarkable traction despite operating in an immature stablecoin payment ecosystem: $30 million in annualized revenue, $1 billion in payment volume, and 1 million users in under 12 months of operation. Kontigo’s CEO Jesus Castillo emphasized the company’s positioning as a “stablecoin-first” payments platform, enabling customers to hold, send, and receive USDC and other major stablecoins without traditional banking friction. The business model leverages the GENIUS Act regulatory clarity passed in July 2025, which enabled Kontigo to accelerate institutional and retail customer acquisition with confidence in the regulatory framework.
Key Takeaways:
- Rapid Growth: $30M revenue, $1B payment volume, and 1M users in <12 months validates stablecoin payment demand.
- Regulatory Tailwind: GENIUS Act passage in July 2025 provided regulatory clarity enabling Kontigo to scale confidently.
- Seed Confidence: $20M seed round (typical pre-revenue stage round is $2-5M) reflects investor confidence in stablecoin payment narrative.
- Customer Diversification: Mix of institutional treasury departments, retail users, and merchants demonstrates broad adoption potential.
Why It Matters:
- Neobank Validation: Kontigo’s rapid growth validates that stablecoin payments have real customer demand beyond crypto traders.
- GENIUS Act Impact: Direct correlation between regulatory clarity and capital availability for stablecoin fintechs.
- Payment Market Evolution: Stablecoin neobanks may represent the next phase of fintech, leapfrogging traditional banking infrastructure for a segment of users.
Maple Finance CEO Powell delivered bold predictions on the trajectory of stablecoin payments and on-chain finance, forecasting a dramatic surge in stablecoin transaction volumes to $50 trillion annually in 2026. The forecast is driven by increasing adoption among small businesses, institutional treasuries, and cross-border payment networks leveraging stablecoins as settlement mechanisms. Powell’s projection assumes continued regulatory clarity, institutional adoption, and technical infrastructure improvements that enable stablecoins to function as programmable, real-time settlement layers for mainstream commerce. The commentary reflects broader market sentiment that stablecoins are transitioning from speculative assets to foundational financial infrastructure.
Key Takeaways:
- Stablecoin payment volumes projected to surge dramatically due to regulatory clarity and infrastructure maturity
- Small business and SME adoption seen as primary growth driver, particularly for cross-border transactions
- Onchain credit markets expected to expand significantly, with potential for systemic risk events
- Stablecoins positioned as superior alternative to traditional payment systems for certain use cases
- Market maturity and regulatory compliance driving institutional adoption at accelerating pace
Why It Matters:
- Market Transformation: $50 trillion projection (if realized) would represent 16x current global payments volume, indicating fundamental restructuring of payment infrastructure
- Small Business Impact: Lower friction and cost for stablecoin payments would benefit SMEs, particularly in emerging markets and cross-border scenarios
- Competitive Pressure: Traditional payment networks (Visa, Mastercard, wire transfers) facing existential competition from faster, cheaper stablecoin infrastructure
- Systemic Risk Monitoring: Rapid scale-up of on-chain credit creates need for enhanced regulatory oversight and macroprudential policy
- Monetary Policy Implications: Massive stablecoin adoption could complicate central bank monetary policy transmission mechanisms and financial stability oversight
JPMorgan Chase forecasts that stablecoin supply could grow to $500 billion to $600 billion by 2028, significantly lower than optimistic projections of $2 trillion to $4 trillion. The bank attributes this measured growth to stablecoin demand being primarily driven by the crypto market (trading, derivatives, DeFi collateral) rather than traditional payment use cases. Since the beginning of 2025, the stablecoin market has grown by approximately $100 billion, reaching roughly $308 billion, with Tether’s USDT and Circle’s USDC leading growth. Current payment drivers remain small, though they may expand as more service providers test stablecoin-based cross-border transfers. JPMorgan notes that increased token velocity could offset the need for larger stablecoin supply, while CBDCs and tokenized deposits present competitive alternatives.
Key Takeaways:
- Stablecoin market reached $308 billion in December 2025, with $100 billion growth in 2025 alone
- Forecast projects conservative $500-600B supply by 2028, below $2-4T optimistic estimates
- Demand driven primarily by crypto trading/derivatives rather than payment infrastructure
- Tether (USDT) and Circle (USDC) command majority of current stablecoin market share
- Token velocity increases and CBDCs may limit need for exponential stablecoin supply growth
Why It Matters:
- Provides realistic market sizing for institutional planning and capital allocation decisions
- Highlights that mainstream payment adoption of stablecoins remains underdeveloped compared to crypto use cases
- Shows potential competition from CBDCs and tokenized deposits in settlement and cross-border payments
- Suggests stablecoin market maturation is gradual rather than explosive
- Indicates that broader adoption will require solving structural payment infrastructure challenges
- Guides regulatory policy on appropriate reserve requirements and institutional frameworks
The Bank of Korea is accelerating its second phase of CBDC testing as legislative progress on a won-denominated stablecoin framework remains stalled. Under “Project Hangang,” the central bank has sent formal notices to major banks to prepare for renewed CBDC trials, though detailed timelines and structures are still under discussion. The new phase envisions distributing part of government subsidies in CBDC form to restrict usage to specific purposes and cut administrative and management costs. The move follows a first pilot with seven banks that was paused amid questions over real-world utility and the high costs imposed on participating institutions. Policy friction between the Financial Services Commission and the Bank of Korea over who controls and supervises won stablecoins continues to delay comprehensive legislation, pushing the central bank to advance its own digital currency agenda in parallel.
Key Takeaways:
- The Bank of Korea is restarting its second CBDC test under “Project Hangang” with major commercial banks.
- Authorities are considering paying part of government subsidies in CBDC to control spending scope and reduce administrative costs.
- The first CBDC pilot was paused due to limited practical use cases and significant bank implementation costs.
- Legislative work on a won stablecoin law is delayed amid disagreements between the Financial Services Commission and the central bank.
- The central bank emphasizes that CBDC and private stablecoins have different roles and can coexist.
Why It Matters:
- Signals Korea’s intent to maintain monetary and payments sovereignty while private stablecoin regulation lags.
- Tests using CBDC for government subsidies could become a template for programmable public spending and welfare distribution.
- Ongoing turf battles over won stablecoins highlight unresolved questions on systemic importance, oversight and risk allocation.
- Banks are being pushed back into CBDC experiments, shaping future infrastructure and cost structures for digital money.
Powered by
