TickerTape
Weekly Global Stablecoin & CBDC Update:
Hong Kong, S. Korea, Banks, Regulation
Hong Kong will roll out its official Stablecoins Ordinance on August 1, 2025, establishing a formal licensing framework for stablecoin issuers and related service providers. This move marks a major step in Hong Kong’s mission to become a leading, well-regulated digital asset hub in Asia.
Gazetted on May 30, the ordinance introduces mandatory licensing for any entity engaged in stablecoin activities, including issuance, custodianship, and operational services. Regulated firms must comply with stringent standards around investor protection, financial stability, anti-money laundering (AML), and counter-financing of terrorism (CFT).
The Hong Kong Monetary Authority (HKMA) has initiated a public consultation to refine the technical details of the regime. Proposed rules emphasize robust operational risk controls, governance standards, and AML/CFT compliance. The legislative details will be presented to the Legislative Council on June 11 under the negative vetting procedure—meaning they’ll automatically go into effect unless actively blocked by lawmakers.
This development positions Hong Kong alongside other major jurisdictions moving to regulate stablecoins, reflecting their growing role in payments, trading, and DeFi. Policymakers emphasize that the framework will balance innovation with risk mitigation, reinforcing Hong Kong’s reputation as a forward-thinking financial center with clear virtual asset guidelines.
Key Takeaways:
- Hong Kong’s stablecoin licensing regime begins August 1, 2025.
- All stablecoin-related activities will require a license under the new ordinance.
- Compliance includes AML/CFT checks, governance standards, and risk controls.
- Rules enter force unless vetoed by lawmakers under the Legislative Council’s negative vetting process.
Why It Matters:
- Solidifies Hong Kong’s status as a regulated hub for digital finance in the APAC region.
- Provides legal clarity for stablecoin issuers, improving investor and institutional confidence.
- Encourages innovation while maintaining safeguards against financial crime and systemic risk.
- Aligns Hong Kong with global peers in setting stablecoin policy amid rising adoption in DeFi and payments.
Deutsche Bank is actively evaluating the launch of its own stablecoin or joining an industry-led initiative as part of its expanding digital assets strategy. The bank is also considering building a tokenized deposit system designed to enhance payment efficiency and keep pace with blockchain-based financial infrastructure.
Sabih Behzad, Deutsche Bank’s head of digital assets and currencies transformation, says the firm is assessing multiple options—including acting as a reserve manager for stablecoins or issuing its own digital token. This move aligns with similar trends among major U.S. banks like JPMorgan, Bank of America, Citigroup, and Wells Fargo, which are reportedly collaborating on a joint stablecoin project.
The European Union’s regulatory clarity and the pending U.S. stablecoin legislation under the Trump administration are credited with accelerating institutional adoption of blockchain-powered payment systems. Deutsche Bank has publicly recognized stablecoins as approaching mainstream usage, further highlighted by its investment in cross-border payments platform Partior and participation in Project Agorá—a central bank-backed initiative for wholesale tokenized payments.
Key Takeaways:
- Deutsche Bank is considering launching a stablecoin or joining a collective stablecoin initiative.
- It may also develop a tokenized deposit system to streamline payment efficiency.
- Regulatory clarity in the EU and U.S. is pushing banks toward blockchain innovation.
- The bank is part of Project Agorá and has invested in Partior, reflecting its digital strategy focus.
Why It Matters:
- Signals growing momentum for stablecoin adoption among global Tier-1 banks.
- Reinforces the role of tokenized deposits in next-generation banking infrastructure.
- Positions Deutsche Bank as a key player in Europe’s regulated digital finance ecosystem.
- Aligns with a broader trend of traditional banks entering the crypto settlement and payments space.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is being deployed in Hong Kong’s e-HKD+ pilot Phase 2, a CBDC initiative spearheaded by the Hong Kong Monetary Authority (HKMA). The pilot explores tokenized payments infrastructure, with a specific focus on secure interoperability between CBDCs and stablecoins across multiple blockchain networks.
Backed by Visa, Fidelity, and ANZ Bank, the pilot evaluates three interoperability models: HTLC, centralized mint/burn, and Chainlink’s CCIP, with Chainlink’s decentralized solution standing out for its security and cross-network functionality.
The project integrates smart contracts, real-time verification, and automation, with the ultimate goal of lowering transaction costs and streamlining cross-border digital payments. Though regulatory and systemic impact questions remain, the pilot’s high-profile backers suggest strong institutional confidence in blockchain-based financial rails.
Key Takeaways:
- Chainlink’s CCIP at the Core: Used to enable seamless communication between CBDCs and stablecoins across different blockchains.
- Global Finance Titans Involved: Visa and Fidelity’s participation signals growing institutional buy-in for interoperable blockchain payments.
- HKMA Leads e-HKD+ Pilot: The Hong Kong Monetary Authority tests tokenized CBDC infrastructure with a focus on stability and compliance.
- Interoperability Benchmarked: Three technical models were tested, with Chainlink’s decentralized CCIP rated most secure and flexible.
- Smart Contract Automation: The system supports real-time data validation, lower fees, and streamlined cross-border transfers.
- Tokenized Deposits via ANZ: ANZ Bank served as the tokenized deposit issuer, linking traditional finance to blockchain execution.
Why it Matters:
- From Theory to Practice: Chainlink’s involvement in a live CBDC-stablecoin test with real financial institutions shows blockchain’s evolving utility in regulated environments.
- Interoperability is the Holy Grail: As countries develop siloed CBDC systems, cross-chain connectivity will be vital, this pilot lays groundwork for that.
- Traditional Meets Decentralized: Visa and Fidelity’s support highlights how legacy finance is inching toward blockchain integration, especially in payment infrastructure.
- Hong Kong as a Testing Ground: The city’s pro-digital asset stance and regulatory sandbox are helping shape global standards for CBDC implementation.
Nigerian fintech Kredete, in partnership with Visa, Stellar, and Rain, has launched a stablecoin-backed credit card that allows Africans to store and spend digital dollars (USDC) globally. This wallet-linked Visa card supports both online and offline purchases across 100+ countries, converting currencies in real-time at the point of sale.
Kredete’s core mission is to bridge financial inclusion gaps, especially for African immigrants building credit profiles abroad. The new card integrates USDC settlement, blockchain rails, and Visa’s global infrastructure, offering users the best of crypto and TradFi in a single product.
This product arrives amid growing demand for currency stability and cheaper remittance alternatives in Sub-Saharan Africa, where fees average 7% and local currencies are highly volatile. By using stablecoins for cross-border value storage and payment, Kredete aims to modernize financial access on a continental scale.
Key Takeaways:
- Africa’s First USDC-Backed Card: Kredete’s Visa card links to a digital wallet and settles purchases in USDC, enabling global spending.
- Real-Time FX Conversion: Transactions convert to local currencies at the point of sale, combining digital dollars with real-world utility.
- Credit Building for Immigrants: Money transfers via Kredete help African immigrants in the U.S. establish credit in their host countries.
- Low-Cost Remittances: Stablecoin rails provide faster and cheaper transfers across 40+ countries.
- TradFi Meets DeFi: Partnership with Visa and Stellar bridges crypto infrastructure with mainstream payment systems.
- Built for Financial Inclusion: Aims to reduce reliance on volatile local currencies and promote global access to stable financial tools.
Why it Matters:
- Financial Inclusion 2.0: Kredete’s launch represents a real-world use case of stablecoins addressing persistent barriers to global finance—remittance fees, credit invisibility, and currency instability.
- Dollarization Without the Banks: This model gives users dollar stability without needing traditional bank accounts, especially in economies plagued by inflation or banking distrust.
- A Glimpse of the Future: It signals how stablecoins are moving beyond trading and becoming embedded in everyday financial tools—especially in emerging markets.
- Policy Implications: With regulators watching crypto’s evolution across Africa, Kredete could become a template for compliant, blockchain-powered finance that actually serves the people.
After some rumours, Societe Generale-FORGE (SG-FORGE) announces the launch of USD Coinvertible (USDCV), a U.S. dollar-backed stablecoin. USDCV will be available on both Ethereum and Solana, building on the firm’s earlier EUR Coinvertible (EURCV) release in 2023.
The stablecoin is designed for institutional, corporate, and retail users, supporting crypto trading, cross-border payments, FX transactions, and cash management. SG-FORGE is partnering with BNY Mellon, which will act as the reserve custodian.
USDCV will offer 24/7 conversion between fiat and stablecoins. It will be listed across exchanges and supported by market makers to ensure liquidity. SG-FORGE will publish daily reserve disclosures and comply with MiCA regulations as an Electronic Money Token (EMT), backed by its French EMI license.
Key Takeaways:
- Multi-Chain Launch: USDCV will be available on Ethereum and Solana, increasing accessibility and transaction speed.
- BNY Mellon Custody: The reserve funds behind USDCV will be securely managed by BNY Mellon.
- 24/7 Liquidity: The stablecoin allows round-the-clock conversion between fiat and digital dollars.
- Institutional Grade Compliance: USDCV complies with MiCA rules and is operated by a licensed Electronic Money Institution.
- Broad Use Cases: Supports FX settlement, trading, onchain payments, and treasury management.
- Transparency Built In: Collateral details and reserve composition will be disclosed daily for user and regulator confidence.
Why it Matters:
- Bridging TradFi and DeFi: A major European bank offering a USD stablecoin signals deeper integration between traditional and digital finance.
- MiCA in Action: USDCV is one of the first stablecoins to fully align with the EU’s MiCA regulatory framework, setting a precedent for compliance-driven digital assets.
- Market Confidence: Backed by credible institutions like Societe Generale and BNY Mellon, USDCV offers a trusted alternative to existing stablecoins.
- Push Toward Real-Time Finance: With 24/7 access and blockchain-based infrastructure, this stablecoin supports the global shift toward instant settlement and modern cash management.
South Korea’s ruling party introduces the Digital Asset Basic Act, a landmark bill that would legalize the issuance of stablecoins by companies with a minimum capital of $368,000. These stablecoins must be backed by reliable assets such as the South Korean won or other strong fiat currencies, aiming to provide both stability and regulatory clarity.
The move reflects the administration’s ambition to modernize the financial system, attract tech startups, and become a leader in blockchain innovation. While the bill has generated optimism among investors and fintech entrepreneurs, critics are calling for tight safeguards and investor protections to ensure responsible stablecoin issuance and prevent misuse.
The law is currently advancing through the legislative approval process, with global attention focused on how this development could shape the future of stablecoins and digital finance in Asia and beyond.
Key Takeaways:
- Legal Framework for Stablecoins: South Korea’s new bill authorizes stablecoin creation for firms with at least $368,000 in capital.
- Asset-Backed Requirement: Stablecoins must be tied to strong currencies like the South Korean won or other fiat assets.
- Blockchain as Economic Strategy: The initiative aligns with the president’s pro-blockchain policy to grow the national economy.
- Support for Innovation: The law is seen as a step toward attracting fintech startups and increasing investor activity.
- Public Optimism with Caution: The digital asset community views the move positively, though some urge tighter regulation to protect investors.
- Legislation in Progress: The bill is still working through the legislative pipeline, but already has international implications.
Why it Matters:
- First Mover in East Asia: South Korea is positioning itself as one of the first major Asian economies to legally embrace stablecoins within a defined regulatory framework.
- Balancing Innovation and Oversight: The bill acknowledges the potential of blockchain finance while also aiming to mitigate systemic risks through capital requirements and clear backing rules.
- Boost to Startup Ecosystem: By inviting regulated digital asset innovation, South Korea could become a magnet for blockchain developers and fintech founders across the region.
- Ripple Effect on Global Crypto Policy: If successful, South Korea’s stablecoin framework could influence regulatory strategies in neighboring countries and beyond, setting a new standard for public-private cooperation in crypto.
Stripe acquires Privy, a crypto wallet infrastructure provider supporting over 50 million wallets, to strengthen its growing presence in digital assets and stablecoin payments. The deal follows Stripe’s 2024 reentry into the crypto space when it began accepting USDC for global merchant payments.
Privy will continue to operate as an independent product within the Stripe ecosystem, giving developers tools to build seamlessly on crypto rails with additional support and scalability.
Stripe’s stablecoin strategy has rapidly expanded, with stablecoin account access now offered in over 100 countries. The company’s leadership notes strong interest from global banks looking to explore stablecoin integrations, even amid concerns from the U.S. banking sector about potential disruption from interest-bearing stablecoins.
Key Takeaways:
- Strategic Acquisition: Stripe acquires Privy to enhance its crypto wallet infrastructure and developer capabilities.
- Independent Operation: Privy will remain an embedded product inside Stripe while scaling with more resources and flexibility.
- USDC Expansion: Stripe now allows stablecoin payments across 100+ countries, treating them like traditional bank transfers.
- Banking Industry Reaction: Stripe executives report rising interest from banks, although concerns over yield-bearing stablecoins persist.
- Stablecoin Market Size: The global stablecoin market has surpassed $250 billion, driving increased institutional attention.
Why it Matters:
- Stripe’s Crypto Reinvention: After stepping away from crypto in 2018, Stripe’s return with USDC support and wallet infrastructure marks a full-circle moment for fintech adoption.
- Bridging Web2 and Web3: Privy’s tools embedded in Stripe’s platform bring wallet creation and crypto access closer to mainstream app developers.
- Institutional Engagement Rising: With banks actively evaluating stablecoin integration, Stripe is positioning itself at the forefront of fintech and crypto convergence.
- Competitive Fintech Landscape: This move places Stripe in direct competition with payment giants and crypto-native platforms alike as infrastructure for stablecoins becomes the next battleground.
The U.S. Senate voted 68-30 to advance the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), a bipartisan bill establishing guardrails for stablecoin issuance and regulation. The cloture vote ended debate and paves the way for a final Senate vote. The legislation received support from 18 Democrats, with Republicans Rand Paul and Josh Hawley voting no.
The GENIUS Act requires stablecoins to be fully backed by U.S. dollars or highly liquid equivalents, mandates annual audits for issuers with market caps over $50 billion, and addresses foreign issuer oversight.
The vote follows the House’s advancement of the CLARITY Act, which proposes a broader regulatory framework for all digital assets. Though some Democrats raised concerns over political conflicts of interest and foreign influence, the Senate leadership emphasized the bill’s consumer protection and economic safeguards.
Key Takeaways:
- GENIUS Act Advances Toward Passage: The Senate voted 68-30 to close debate and move forward with final approval of the stablecoin regulation bill.
- Stablecoin Backing Required: Issuers must fully collateralize stablecoins with U.S. dollars or similar assets and submit to annual audits.
- Bipartisan Support with Dissent: 18 Democrats joined Republicans in support, but key figures like Chuck Schumer and Elizabeth Warren opposed the bill over ethical and governance concerns.
- Political Tensions Surface: Democrats attempted to add restrictions targeting political profiteering in crypto, particularly in light of Trump’s growing ties to stablecoin ventures.
- Trump-Linked Crypto Ventures in Spotlight: Multiple members voiced concern over former President Trump’s role in launching meme coins and stablecoins through affiliated companies.
- Parallel Progress on CLARITY Act: The House is also advancing digital asset legislation that complements the GENIUS Act with broader crypto regulation.
Why it Matters:
- First Major Stablecoin Framework: The GENIUS Act could become the first comprehensive U.S. law governing stablecoin issuance, creating regulatory certainty for institutions, fintechs, and investors.
- Tensions Around Political Influence: The debate highlights growing concern over the merging of political power and financial innovation, with fears of regulatory capture and crypto-fueled corruption.
- Pathway to Consumer Protection: Proponents argue the bill strengthens safeguards around digital dollars, helping protect both investors and the broader financial system from instability or misuse.
- Sign of Bipartisan Momentum in Crypto Law: Despite political friction, the bill’s advancement shows that stablecoin regulation may finally be gaining the legislative traction it lacked for years.
Ant International, the Singapore-based fintech arm of Jack Ma’s Ant Group, plans to apply for stablecoin issuer licenses in both Hong Kong and Singapore, according to Bloomberg sources. This strategic move aligns with the upcoming Stablecoin Ordinance in Hong Kong, which will require issuers to obtain a license from the Hong Kong Monetary Authority (HKMA) starting August 1.
Ant International aims to leverage stablecoins for cross-border payments and treasury management, building on its $1 trillion in annual transactions, a third of which are processed via its blockchain-powered Whale platform. The company is also expected to explore licensing in Luxembourg, expanding its regulated digital finance footprint across multiple jurisdictions.
This signals growing confidence among fintech giants in the evolving global regulatory framework for stablecoins and could position Ant Group as a major player in crypto-enabled payments infrastructure.
Key Takeaways:
- Licensing in Progress: Ant International plans to apply for stablecoin licenses in Hong Kong after the Stablecoin Ordinance takes effect in August, with similar efforts expected in Singapore and Luxembourg.
- Hong Kong Regulatory Milestone: The Stablecoin Ordinance, passed in May, creates a formal licensing regime with noncompliance penalties of up to HK$5 million.
- Global Transaction Powerhouse: Ant International processes over $1 trillion annually, with a third already running on blockchain rails through its Whale platform.
- Use Case Focus: Stablecoins will support Ant’s cross-border payments and treasury operations, enhancing speed, liquidity, and settlement efficiency.
- Track Record in Tokenization: Ant Group has partnered with blockchains like Sui for real-world asset tokenization, including ESG-related instruments.
- Fintech-Driven Crypto Adoption: This move reflects how large-scale traditional fintech firms are increasingly leaning into digital asset infrastructure.
Why it Matters:
- East Asia Takes the Lead: Ant International’s entrance into regulated stablecoins reflects Asia’s accelerating pace in digital currency innovation and infrastructure development.
- Corporate Stablecoins are Coming: Ant’s size and user base give it the potential to introduce stablecoins at unprecedented scale, with over 1.3 billion users and 80 million merchants already on its payments network.
- Compliance Is the Differentiator: By aligning with licensing regimes early, Ant may gain a first-mover advantage in regulated jurisdictions over less compliant crypto-native competitors.
- $1 Trillion Stablecoin Market in Sight: As stablecoin supply grows rapidly, institutional adoption from players like Ant may drive the global market toward the $1 trillion milestone projected by the end of 2025.
Shopify announced a major move into crypto payments by launching support for USDC, a dollar-pegged stablecoin issued by Circle, across its e-commerce platform. The rollout begins with a select group of U.S. and European merchants in late June, with full access expanding later this year.
This stablecoin integration is opt-out by default, meaning all merchants will automatically accept USDC unless they disable it. Shopify partnered with Coinbase to develop a custom payments protocol on Base, Coinbase’s Layer 2 blockchain, designed to handle retail-specific functions like refunds and chargebacks. Shopify also worked with Stripe to embed stablecoin payments into its core infrastructure.
USDC transactions will earn up to 0.5% cash back for participating merchants, with additional consumer rewards coming later in the year.
Key Takeaways:
- USDC Payments Coming to Shopify: The platform will roll out native USDC support across its merchant network starting with select users in the U.S. and Europe.
- Partnerships with Coinbase and Stripe: Coinbase developed a stablecoin payment protocol for Shopify using its Base blockchain. Stripe helped integrate USDC into Shopify’s existing systems.
- Opt-Out Integration: Merchants will automatically accept USDC unless they manually change their settings, marking a major shift in default crypto adoption.
- Cash Back Incentives: Merchants receive up to 0.5% cash back on USDC transactions. Customers paying in USDC will also be eligible for rewards.
- Silicon Valley Stablecoin Surge: The move reflects growing tech industry interest in stablecoins, as firms like Meta, Airbnb, and Apple explore similar integrations.
- Legislative Momentum: The announcement coincides with expected U.S. Senate approval of the GENIUS Act, which would provide a regulatory framework for stablecoins.
Why it Matters:
- Mainstream Adoption Signal: Shopify’s opt-out model puts stablecoin payments in front of hundreds of thousands of merchants, moving USDC deeper into retail infrastructure.
- Retail-Ready Blockchain Integration: By addressing chargebacks, refunds, and transaction management, Shopify and Coinbase have created a system built for day-to-day commerce, not just crypto-native users.
- First-Mover Advantage in e-Commerce: Shopify is setting the standard for how Web2 platforms can integrate stablecoins natively and at scale.
- Stablecoin Flywheel Accelerates: With rewards, convenience, and regulatory clarity aligning, this could trigger broader adoption across fintech and commerce sectors
Coins.ph, one of the Philippines’ largest crypto platforms, has officially launched PHPC, the country’s first fully regulated peso-backed stablecoin, after graduating from the Bangko Sentral ng Pilipinas (BSP) regulatory sandbox. Originally scheduled for release in June 2024, the project was delayed but is now fully cleared for wider use.
PHPC aims to address remittance inefficiencies, limited financial access, and the high cost of cross-border payments—challenges deeply embedded in the Philippine economy. Coins.ph sees PHPC as a solution for underbanked users, supporting faster, lower-cost transactions without relying on traditional banks. The stablecoin is backed 1:1 by cash and equivalents held in local banks and is subject to audits and regulatory oversight.
PHPC enters a growing local stablecoin ecosystem that also includes PHPX, a project backed by multiple rural banks and fintech partners.
Key Takeaways:
- PHPC Stablecoin Approved: Coins.ph has launched PHPC after successfully completing BSP’s regulatory sandbox program.
- Backed by Local Reserves: The stablecoin is backed 1:1 by cash or equivalents held in local Philippine banks.
- Designed for Remittances and Inclusion: PHPC targets remittances, cross-border payments, and users without access to traditional banking services.
- Strong Demand Expected: With sandbox restrictions lifted, Coins.ph plans to scale issuance and support larger transactions.
- Audited and Regulated: PHPC is subject to regular third-party audits and BSP oversight, though public reserve disclosures remain unclear.
- Rising Ecosystem Competition: Other Philippine peso stablecoins like PHPX are in development with support from local banks and fintech groups.
Why it Matters:
- Game-Changer for Remittances: In a country receiving over $40 billion annually from overseas workers, PHPC can significantly reduce fees and delays in transferring money home.
- Financial Inclusion at Scale: With only 56% of Filipinos banked, PHPC offers a critical tool to extend digital financial access to the unbanked and underbanked.
- Emerging Market Use Case: The Philippines is an ideal testbed for stablecoins in developing economies, where banking infrastructure is uneven and currency stability is moderate.
- Regulation Sets a Precedent: BSP’s sandbox graduation signals that stablecoins can move from concept to deployment under a central bank’s oversight—potentially influencing other emerging markets.
Matera, a real-time financial infrastructure provider, has partnered with Circle, issuer of USDC, to enable seamless interoperability between local currencies and stablecoins. This collaboration integrates USDC into Matera’s Digital Twin real-time ledger platform, empowering banks and fintechs to offer multi-currency accounts that support the Brazilian Real (BRL), U.S. Dollar (USD), and USDC.
The partnership makes it possible for domestic payment systems like PIX to link with global stablecoin liquidity, allowing faster, cheaper, and more transparent international transactions. Financial institutions can now offer USDC as a native balance option, bringing stablecoin utility into traditional financial interfaces.
The announcement follows Circle’s IPO earlier this month, reflecting the company’s ongoing push for global financial integration through digital dollars.
Key Takeaways:
- Native USDC Integration: Matera’s Digital Twin platform now supports USDC alongside local currencies for real-time financial operations.
- Multi-Currency Account Support: Banks and fintechs using Matera can offer clients balances in BRL, USD, and USDC from a single account.
- Cross-Border Payments via PIX: Brazil’s PIX payment system can now connect to global USDC liquidity, enabling cost-effective international payments.
- Instant Settlement Infrastructure: The partnership is designed to provide near-instant, low-cost settlement for financial institutions operating across borders.
- Local Meets Global: With USDC embedded, Brazilian banks gain direct access to the global digital economy using a regulated, fully reserved digital dollar.
- Leadership Commentary: Matera’s CEO called this the start of a new global banking layer, while Circle emphasized its commitment to transparency and cross-border efficiency.
Why it Matters:
- Stablecoins Go Institutional: This integration brings USDC into real-time ledger infrastructure used by banks, making stablecoins part of the core financial plumbing rather than a crypto side tool.
- Boost to Brazil’s Fintech Ecosystem: With PIX connected to USDC, Brazil could become a leading testbed for stablecoin-enabled payments and remittance flows.
- New Model for Multi-currency Banking: The ability to natively hold and transact in stablecoins and fiat from a single account sets a blueprint for how banks can serve globally mobile users and businesses.
- Reinforces Circle’s Global Push: Coming on the heels of Circle’s NYSE debut, this partnership shows how the firm is strategically embedding USDC into regulated financial infrastructure.
