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Weekly Global Stablecoin & CBDC Update
This Week's Stories (So Far)
Bitcoin Everlight, a transaction routing and validation network built to operate alongside the Bitcoin blockchain, announced the opening of Phase 3 of its public presale, pricing its BTCL token at 0.0012 dollars with a fixed total supply of 21 billion tokens. The project positions itself as a way for participants to earn Bitcoin denominated rewards from routing fees without running mining hardware, using a shard based participation model tied to network activity. Four shard tiers are offered, starting with the Jade Shard at 100 dollars for a stated 6 percent annual BTCL return during presale and rising to the Radiant Shard at 5,000 dollars with up to 25 percent BTCL returns, with all tiers converting to BTC based rewards at mainnet launch. The announcement says over 2 million dollars has already been raised across presale phases and links demand to broader mainstream exposure created by expanding stablecoin rails across banks, payment processors and fintech apps.
Key Takeaways:
- Bitcoin Everlight network is described as a Bitcoin adjacent execution layer that routes transactions while leaving base layer consensus unchanged.
- BTCL token supply is capped at 21,000,000,000 units, with the presale pricing Phase 3 allocations at 0.0012 dollars per token.
- Shard participation tiers range from a 100 dollar Jade Shard with 6 percent BTCL yield to a 5,000 dollar Radiant Shard with up to 25 percent BTCL yield during presale.
- Presale fundraising has surpassed 2 million dollars across phases according to the company’s disclosure.
- Smart contract code has undergone audits by Spywolf and Solidproof and the team reports KYC checks through Spywolf KYC and VitalBlock.
Why It Matters:
- The presale illustrates how projects are trying to convert growing stablecoin driven retail familiarity with digital payments into participation in Bitcoin linked yield products.
- Shard based routing rewards show one model for tying token economics to underlying transaction volume rather than pure price speculation.
- The design reflects a broader trend toward layered architectures where Bitcoin remains the settlement layer while auxiliary networks handle throughput and fee distribution.
- Linking onboarding tiers to relatively low minimum commitments aims to make Bitcoin related infrastructure exposure accessible to a wider retail base.
- Continued emergence of audited, Bitcoin adjacent networks highlights how digital asset infrastructure is diversifying beyond traditional mining and layer two payment channels.
The Reserve Bank of India has ordered that all digital payments in India, including UPI transfers, debit and credit card transactions and mobile wallet payments, use mandatory two factor authentication from April 1 2026, replacing many current one time password only flows. Under the new rules, users must combine at least two factors such as OTP plus PIN, password, biometric data or token based authentication, which regulators acknowledge may add a few seconds to transaction times. RBI frames the move as a response to rising phishing and SIM swap fraud that exploited OTP based systems and says the framework will be risk based, allowing lighter checks on low risk activity and stricter controls on high value or unfamiliar device transactions. Banks and payment platforms will face higher liability and may be required to compensate customers for fraud stemming from system failures, and similar rules are planned for international card payments by October 2026.
Key Takeaways:
- Reserve Bank Of India has made two factor authentication compulsory for all digital payments starting April 1 2026, covering UPI, cards and wallets.
- The new framework requires at least two verification elements, including combinations of OTP, PIN, passwords, biometrics or token based methods.
- Risk based rules will allow fewer checks on low risk or routine payments and stronger verification on high value or new device transactions.
- Banks and payment platforms will carry increased responsibility to reimburse affected users when fraud results from technical or security lapses.
- RBI intends to extend comparable authentication and liability standards to cross border and international card transactions by October 2026.
Why It Matters:
- India’s digital payments ecosystem is entering a new phase where security and liability allocation are being tightened after years of rapid volume growth.
- The shift away from OTP only flows signals regulators’ recognition that fraud techniques have outpaced earlier consumer protection controls.
- Higher issuer and processor liability is likely to push banks and fintechs to invest more in fraud analytics, device intelligence and real time risk scoring.
- Stronger domestic rules around authentication will influence how Indian real time payment rails interconnect with international networks and cross border commerce.
- Treating digital payments as critical national infrastructure, rather than just convenience tools, sets a precedent for future regulation of wallets, instant payment systems and embedded finance products.
The U.S. Federal Reserve has reiterated that it has no intention of launching a central bank digital currency, stating that no CBDC project is in development and none is planned, even on a long term horizon. The stance builds on earlier comments from Chair Jerome Powell that any digital dollar would require explicit congressional authorization and broad political consensus, but current messaging now frames the issue as a settled decision rather than an open question. The position aligns with recent U.S. legislation such as the Anti-CBDC Surveillance State Act, which seeks to bar the Fed from issuing a retail CBDC over concerns about state surveillance, privacy, and bank disintermediation. In this vacuum, dollar stablecoins like USDT and USDC, which operate in a market exceeding 300 billion dollars in capitalization, are expected to remain the primary digital dollar instruments.bankingjournal.
Key Takeaways:
- The Federal Reserve statement confirms there are no active workstreams or future plans to issue a U.S. central bank digital currency.
- U.S. Congress has advanced bills including the Anti-CBDC Surveillance State Act to restrict or prohibit a Fed-issued retail CBDC.
- Stablecoins such as USDT and USDC operate in a market where more than 250 stablecoins collectively exceeded about 300 billion dollars in value by mid 2025.
- Financial institutions and lawmakers highlight risks that a CBDC could shift deposits from commercial banks to the central bank and expand transactional surveillance.
- Global peers in Europe and Asia continue CBDC pilots and trials, while the United States doubles down on a private-sector-led digital dollar ecosystem.
Why It Matters:
- Federal Reserve positioning confirms that, in the United States, digital-dollar functionality will rely on private stablecoins and bank products rather than a retail CBDC.
- Stablecoin growth and deep integration into trading and payments suggest private issuers will continue to dominate on chain dollar settlement in the near term.
- Absence of a U.S. CBDC may reassure banks worried about deposit flight but could slow experimentation with programmable public money compared with other jurisdictions.
- Divergent approaches between the United States and other major economies are likely to shape cross border payment standards and regulatory coordination for digital money.
- Long term, the decision raises strategic questions about the dollar’s role in a world where some competing currencies may obtain widely used CBDC forms with direct FX implications.
Columbia Law School’s CLS Blue Sky Blog has spotlighted Simpson Thacher & Bartlett’s analysis of the Office of the Comptroller of the Currency’s proposed rules implementing the GENIUS Act, marking the first comprehensive federal prudential framework for payment stablecoin issuers. The proposal requires 1:1 reserves in high quality assets such as cash, Federal Reserve balances, and short term Treasuries, alongside liquidity thresholds of at least 10 percent in daily liquid assets and 30 percent in weekly liquidity. It bans paying yield solely for holding stablecoins and includes broad anti-evasion language covering affiliates and white-label structures. Large state nonbank issuers with over 10 billion dollars outstanding must transition to OCC supervision or stop net new issuance, while new federal issuers face a minimum capital floor of 5 million dollars and risk-based requirements.
Key Takeaways:
- The OCC proposal under the GENIUS Act establishes that only permitted payment stablecoin issuers may issue payment stablecoins in the United States once rules take effect.
- Reserve framework mandates 1:1 backing with eligible low risk assets plus at least 10 percent daily and 30 percent weekly liquidity, excluding crypto assets from reserves.
- Proposal prohibits interest or yield paid solely for holding stablecoins and targets circumvention through broad affiliate and branding anti-evasion provisions.
- State-qualified issuers exceeding 10 billion dollars in outstanding payment stablecoins must either come under OCC oversight within 360 days or halt net new issuance.
- Capital regime sets a minimum 5 million dollar floor for new issuers and relies on risk-based assessments rather than fixed ratios, with a 60 day public comment window.
Why It Matters:
- OCC’s proposal represents the first detailed federal prudential rulebook for payment stablecoin issuers, moving the sector from ad hoc approvals to a defined licensing regime.
- Strict reserve, liquidity, and redemption standards aim to make fiat-backed stablecoins function more like narrow payment institutions than unregulated crypto tokens.
- Anti-yield provisions respond to bank concerns that high-yield stablecoins could siphon deposits from the traditional banking system, aligning with broader legislative debates.
- Transition rules for large state issuers signal that systemically relevant dollar stablecoins will face federal oversight even if initially chartered at the state level.
- The framework is likely to influence how other U.S. regulators and foreign jurisdictions design their own stablecoin regimes, shaping global standards for reserve-backed digital money.
The IMF has released a working paper, “Stablecoin Inflows and Spillovers to FX Markets,” providing causal evidence that stablecoin flows are now influencing traditional foreign exchange markets. Using daily data on net inflows into major USD-pegged stablecoins against 27 fiat currencies between 2021 and 2025, the authors document systematic price gaps between acquiring dollars via stablecoins and via spot FX, which they term parity deviations. A one percent exogenous increase in net stablecoin inflows raises these parity deviations by about 40 basis points, depreciates the local currency by roughly 5 basis points, and widens short term dollar funding premia by 5 to 10 basis points. A constrained-arbitrage model attributes these spillovers to cross market frictions and balance sheet limits on intermediaries, with simulations suggesting that risks may grow as stablecoin markets deepen.
Key Takeaways:
- The IMF working paper identifies a parallel stablecoin-based FX ecosystem where flows into USD-pegged stablecoins create measurable gaps versus traditional spot FX pricing.
- Empirical estimates show that a one percent increase in net stablecoin inflows raises parity deviations by about 40 basis points and weakens the local currency by around 5 basis points.
- Study finds that the same flow shock widens short term dollar funding premiums by approximately 5 to 10 basis points via covered interest parity deviations.
- Sample spans January 2021 to November 2025 and covers stablecoins such as USDT, USDC, DAI and others across 27 fiat currencies.
- Model-based counterfactuals indicate that cross market frictions are the primary driver of spillovers and that spillover intensity increases as stablecoin markets mature.
Why It Matters:
- Findings demonstrate that stablecoin markets are already linked to traditional FX and dollar funding markets, challenging views that crypto activity is fully siloed.
- Evidence that relatively small flow shocks can move exchange rates and funding premia suggests that rising stablecoin adoption could become a macro relevant channel.
- Results support concerns from policymakers, especially in emerging markets, that dollar stablecoins may affect currency stability and complicate exchange rate management.
- Documentation of constrained arbitrage across stablecoin and FX swap venues highlights the need to monitor dealer balance sheet capacity when assessing systemic risk.
- As regulators design stablecoin and CBDC frameworks, the paper provides data driven support for treating stablecoins as an integral part of the global monetary system rather than a peripheral niche.
StraitsX, the Singapore-based stablecoin infrastructure provider, announced explosive growth in its crypto-backed card ecosystem, with transaction volume rising 40x from Q4 2024 to Q4 2025 and the number of cards issued increasing 83x over the same period. RedotPay, one of its key partners, processed more than $2.95 billion in card volume in 2025, more than four times the combined total of its 13 closest competitors, while global onchain crypto card spending grew 420% year-over-year to reach a $120 million monthly run rate by December 2025. StraitsX has now handled nearly $30 billion in cumulative stablecoin transactions, with XSGD commanding over 70% of the non-USD stablecoin market in the region. The company partners with Visa as BIN sponsor for over 90% of onchain card volume and is expanding via Project BLOOM cross-border corridors with Thailand’s KBank. By the end of March 2026, StraitsX will launch XSGD and XUSD on Solana to support machine-to-machine micropayments.
Key Takeaways:
- StraitsX: 40x surge in card transaction volume from Q4 2024 to Q4 2025
- StraitsX: 83x increase in cards issued between 2024 and 2025
- RedotPay: $2.95 billion in processed card volume during 2025
- Onchain crypto card spending: 420% growth throughout 2025
- StraitsX: nearly $30 billion cumulative stablecoin transactions processed
- Visa: 90% share of onchain card volume with $3.5 billion annualized run rate by Q4 2025
Why It Matters:
- This validates stablecoins as the invisible backend for mainstream consumer payments in high-growth emerging markets
- The growth trajectory signals mainstream adoption of programmable money for everyday spending and remittances
- Traditional card networks like Visa are actively integrating and dominating onchain volume rather than competing
- It demonstrates seamless connection of digital assets to legacy rails through real-time fiat settlement and chargeback protections
- The long-term implication is a shift toward near-zero-fee, continuous micropayments embedded in applications and cross-border flows
Coinbase and Better Home & Finance have begun accepting Circle’s USDC stablecoin as collateral for Fannie Mae-backed mortgages, enabling qualifying crypto holders to secure home loans without liquidating their digital asset positions. The partnership brings the regulated, dollar-backed stablecoin directly into the U.S. housing finance system—one of the largest consumer credit markets—extending USDC’s utility beyond trading and payments into traditional mortgage underwriting. Circle Internet Group operates the stablecoin with full reserve backing and existing regulatory compliance. This development occurs as the broader stablecoin sector operates under the federal GENIUS Act framework, which sets standards for permitted issuers and reserve requirements. Early adoption by these partners marks the first known integration of a major stablecoin into Fannie Mae mortgage collateral processes, potentially expanding access for crypto-native borrowers while raising questions about scaling, regulatory oversight, and valuation treatment in lending decisions.
Key Takeaways:
- Circle USDC: accepted as collateral for Fannie Mae backed mortgages
- Coinbase: partnered with Better Home & Finance to enable USDC collateral loans
- Better Home & Finance: first traditional lender to accept USDC for mortgage applications
- US housing finance system: direct integration point for regulated stablecoin collateral
- Circle Internet Group: regulated dollar-backed stablecoin now tied to core consumer credit markets
Why It Matters:
- This proves stablecoins can serve as viable collateral within established U.S. government-sponsored enterprise lending programs
- It signals accelerating institutional adoption of digital assets in mainstream consumer finance products
- Traditional mortgage originators are responding by incorporating crypto holdings without forcing liquidation
- The move strengthens connections between digital currencies and legacy financial infrastructure such as Fannie Mae
- Long-term strategic implication is broader mainstreaming of stablecoins as programmable collateral across real-estate and credit markets
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