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Weekly Global Stablecoin & CBDC Update
This Week's Stories (So Far)
From 1 January 2026, China’s digital yuan has been upgraded to a 2.0 model, transforming it from digital cash into interest-bearing digital deposits. Ten major institutions, including ICBC, ABC, BOC, CCB, Postal Savings Bank, major joint-stock banks, and leading internet banks WeBank (WeChat) and MyBank (Alipay), now pay interest on real-name digital yuan wallets at the current benchmark demand deposit rate of 0.05% per year, with the same interest calculation and settlement rules as bank demand deposits. The official Digital RMB App has simultaneously been upgraded to version 2.0, adding full support for deposit-like digital yuan, including rate display, quarterly interest records, and differentiated treatment between real-name and anonymous wallets. Regulators have clarified that these balances are now treated as commercial bank liabilities within the reserve and deposit insurance framework, paving the way for future use of digital yuan to purchase traditional wealth management products.
Key Takeaways:
- Digital yuan 2.0 introduces interest-bearing real-name wallets at an annual rate of 0.05%, aligned with banks’ demand deposit rates.
- Ten major banks and two leading internet banks jointly announced the new interest mechanism for digital yuan real-name wallets.
- The Digital RMB App 2.0 now shows current rates, quarterly interest settlements, and distinguishes between real-name and anonymous wallets, with only the former earning interest.
- Real-name wallets (Tier 1-3) require varying levels of KYC and can interoperate with linked bank accounts, while anonymous Tier 4 wallets remain non–interest-bearing.
- Policy documents reclassify digital yuan held at banks as deposit liabilities, bringing balances into the reserve requirement and deposit insurance systems.
Why It Matters:
- Signals a structural shift from a pure “digital cash” model toward full-fledged digital deposit money, expanding the digital yuan’s role from payments to value storage.
- Aligning digital yuan with traditional deposits gives banks balance-sheet incentives, likely accelerating product innovation and broader ecosystem adoption.
- Integration into reserve, AML, and deposit insurance frameworks tightens regulatory control while enhancing user protection and legal certainty.
- Differentiated treatment of real-name vs anonymous wallets balances financial inclusion, privacy, and risk management in China’s evolving digital monetary system.
Hong Kong’s Financial Services and the Treasury Bureau and Securities and Futures Commission concluded public consultations on legislative proposals to regulate virtual asset dealing and custodian services, with a further consultation launched for virtual asset advisory and management services. The regulator confirmed that virtual asset dealers will be aligned closely with securities regulation under the SFO, while custodian licenses will focus on safekeeping private keys. Licensed VA dealers must hold client assets only with SFC-regulated custodians, and the framework introduces technology-neutral approaches for multi-party computation providers. Comments on the advisory and management services consultation are due by January 23. The FSTB and SFC intend to introduce a bill to the Legislative Council in 2026, with no transitional period or deeming arrangements for existing providers, though expedited approval processes will be available for currently regulated entities.
Key Takeaways:
- VA dealing services definition mirrors Type 1 securities regulation, excluding derivatives and yield-based activities
- VA custodians require licenses only if they safekeep instruments enabling asset transfer, not actual assets themselves
- Multi-party computation providers will not require licenses if clients retain unilateral transfer ability and key reconstruction capability
- Significant exemptions provided for stablecoins licensed by HKMA, intra-group transactions, and certain professional service providers
- Individual licensing requirements apply only to core custody functions, not administrative or clerical roles
Why It Matters:
- Hong Kong is establishing the most comprehensive regulatory regime for virtual asset providers in Asia, positioning itself as a regional hub
- Clear scope definitions will reduce compliance uncertainty and enable faster market entry for qualified firms
- The framework follows international standards while allowing for innovation in custody technology, particularly MPC solutions
- Expedited approval pathways for existing SFC-regulated entities will facilitate smoother transition to new regime
- This development signals Hong Kong’s commitment to compete globally in digital asset regulation while maintaining investor protection
Digital payments adoption is poised to accelerate in 2026 through central bank digital currency enhancements and institutional initiatives across multiple regions. China’s digital yuan entered an interest-bearing phase on January 1, transitioning from simple cash equivalent to regulated deposit-like asset, with commercial banks paying interest aligned to demand deposit rates to enhance appeal and competitiveness. The Philippines’ central bank highlighted cybersecurity barriers to broader digital payment integration while preparing 24/7 system rollouts. A survey by the Association for Financial Professionals and J.P. Morgan revealed 72% of organizations are exploring advanced digital transaction formats, while 40% focus on infrastructure modernization. Australia implemented new legislation requiring cash acceptance for essential services to balance innovation with accessibility. Thailand’s digital payments generated 1.7 trillion baht in tourism revenue, with digital wallets emerging as the primary gateway for global transactions, projected to surpass 5.3 billion users by year-end.
Key Takeaways:
- China’s e-CNY interest-bearing feature launched January 1 aims to boost adoption by competing with private payment platforms and traditional deposits
- Cybersecurity threats remain the primary barrier to broader digital payment integration in developing markets like the Philippines
- B2B digital payments show strong momentum with 72% of respondents exploring new formats and 40% modernizing infrastructure
- Regulatory balancing acts between innovation and inclusion are emerging globally, with cash mandates protecting vulnerable populations
- Digital wallets transitioning from convenience tools to core infrastructure for money movement across all transaction types
Why It Matters:
- Central bank digital currencies are evolving from static digital cash models toward dynamic deposit-like instruments with competitive features
- Countries implementing security-first approaches while rolling out 24/7 systems can establish trust in digital payment ecosystems
- Institutional adoption of advanced digital formats signals growing confidence in digital infrastructure maturity
- Policy frameworks protecting cash access demonstrate feasibility of parallel digital-traditional payment systems
- Tourism and cross-border use cases are validating digital payment efficiency gains at scale
Bitcoin surged nearly 8% in 24 hours to trade above $92,000 after U.S. asset management giant Vanguard approved trading of spot Bitcoin ETFs on its platform. The move marks a sharp pivot for the $11 trillion manager and has unleashed a wave of institutional demand, highlighted by more than $10 billion in trading volume for BlackRock’s IBIT within the first 30 minutes of trading. The rally has spilled over into altcoins, with Pudgy Penguins (PENGU), Sui (SUI), and Pump.fun (PUMP) all recording double-digit gains as liquidity and risk appetite return to the broader crypto market.
Key Takeaways:
- Bitcoin jumps nearly 8% in 24 hours, breaking above $92,000.
- Vanguard begins allowing spot Bitcoin ETF trading on its platform.
- Vanguard oversees more than $11 trillion in assets, amplifying market impact.
- BlackRock’s IBIT records over $10 billion in trading volume in the first 30 minutes.
- Altcoins PENGU, SUI, and PUMP post double-digit gains alongside Bitcoin’s rally.
Why It Matters:
- Signals accelerating mainstream and institutional adoption of Bitcoin via blue-chip asset managers.
- Demonstrates how ETF market structure can rapidly channel large-scale capital into crypto.
- Highlights growing correlation between Bitcoin ETF flows and broader crypto asset performance.
- Underscores shifting risk appetite after prior market drawdowns, with altcoins responding strongly to BTC-led moves.
PricewaterhouseCoopers (PwC), the second-largest of the Big Four accounting firms, reversed its previously cautious stance on cryptocurrency and is now actively pitching digital asset solutions to clients. The shift follows passage of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) and broader regulatory developments under the Trump administration. Senior Partner Paul Griggs stated in a Financial Times interview that “The Genius Act and the regulatory rulemaking around stablecoin, I expect, will create more conviction around leaning into that product and that asset class.” PwC is specifically targeting stablecoins as tools for improving payment systems’ efficiency and operational cost reduction. This marks a significant institutional pivot, as other Big Four firms (Deloitte, EY, KPMG) had previously steered clear of direct crypto-related work in the U.S. due to regulatory uncertainty. The move signals mainstream financial services embracing blockchain infrastructure for enterprise use cases.
Key Takeaways:
- PwC senior leadership now explicitly endorsing stablecoin adoption for enterprise applications
- Focus is on payment efficiency and operational cost reduction rather than trading/speculation
- GENIUS Act’s passage in July 2025 created the regulatory confidence needed for Big Four engagement
- PwC pitching stablecoins to clients as a concrete business case, not experimental technology
- Movement demonstrates how regulatory clarity converts institutional hesitation into proactive deployment
Why It Matters:
- Mainstream Validation: When the world’s second-largest accounting firm actively recommends stablecoins, it signals normalization of blockchain payments in enterprise treasury operations
- Audit Trail Confidence: PwC’s audit and controls expertise now applied to stablecoin frameworks, providing institutional-grade risk management
- Market Expansion Signal: Big Four engagement typically precedes rapid enterprise adoption; expect cascade of corporate stablecoin treasury pilots through 2026
- Compliance Infrastructure: PwC can now certify stablecoin operational controls to institutional standards, reducing onboarding friction
- Margin Economics: PwC recognizes blockchain payment settlement costs are 99% lower than traditional correspondent banking, a tangible ROI narrative for CFOs
Dante Disparte, Chief Strategy Officer at Circle, framed USDC stablecoins as foundational infrastructure for the broader tokenization of real-world assets (RWAs) in a January 5, 2026 interview with TheStreet. Disparte highlighted that USDC, pegged 1:1 to the U.S. dollar with market cap exceeding $75 billion, now represents ~25% of the total stablecoin market and serves as the preferred settlement mechanism for major financial institutions. He cited evidence that Visa, Stripe, and Robinhood specifically use USDC for payment settlement over weekends when traditional banking infrastructure is offline. Disparte emphasized that the GENIUS Act now protects against digital dollar counterfeits through codified reserve requirements and regulatory frameworks. He noted that financial giants like BlackRock champion tokenization as breakthrough innovation, positioning USDC as the de-facto dollar layer within emerging financial infrastructure, more efficient for many firms than building proprietary stablecoins.
Key Takeaways:
- USDC now accounts for ~25% of total stablecoin market ($75B+ market cap); positioned as institutional gold standard
- Major payment giants (Visa, Stripe, Robinhood) actively using USDC for settlements during banking hours gaps
- GENIUS Act codifies USDC and similar tokens as compliant infrastructure, protecting against regulatory risk
- Financial institutions increasingly building tokenization strategies on USDC rather than creating competing stablecoins
- Institutional confidence signals multi-year runway for USDC expansion as RWA tokenization scales
Why It Matters:
- Consolidation Thesis: As the most trusted stablecoin, USDC is becoming the settlement rail of choice, creating winner-take-most dynamics in stablecoin infrastructure
- Banking Integration: Weekend settlement via stablecoins is now embedded in workflows of major fintech companies, standardization is accelerating
- Regulatory Moat: GENIUS Act creates legal framework protecting USDC against competitive and regulatory threats, enhancing institutional confidence
- RWA Pipeline: As tokenization of bonds, real estate, and commodities scales, USDC becomes the value conduit, massive TAM unlock
- Enterprise Adoption: When Visa and Stripe prefer USDC over legacy payment rails, it signals permanent infrastructure shift for cross-border and domestic flows
Circle executed a 250 million USDC minting event from the USDC Treasury on January 5, 2026, injecting substantial liquidity into stablecoin infrastructure amid record institutional adoption signals. The minting reflects Circle’s confidence in accelerating demand for USDC across institutional settlement, cross-border payments, and DeFi applications. Whale Alert data tracking the event demonstrates that stablecoin sector growth continues unabated—combined market capitalization of major fiat-collateralized stablecoins now regularly exceeds $150 billion, approaching all-time highs. The 250M USDC injection directly supports smoother financial operations across blockchain networks and enables institutional institutions to execute larger settlement volumes with reduced slippage and friction. This liquidity increase occurs alongside regulatory clarity from the GENIUS Act, which codifies USDC as compliant infrastructure, removing uncertainty that previously constrained institutional capital deployment at scale.
Key Takeaways:
- 250M USDC minting reflects institutional demand confidence and near-term settlement volume expectations
- Stablecoin market cap approaching record highs despite recent crypto market consolidation
- Minting size ($250M) typical for major liquidity injection events supporting multi-week institutional trading cycles
- GENIUS Act regulatory framework enables Circle to optimize liquidity positioning with institutional capital confidence
- Whale-tracked event demonstrates blockchain transparency advantages over traditional banking infrastructure
Why It Matters:
- Demand Signals: Large minting events typically precede institutional settlement waves; indicates expectation of elevated Q1 2026 activity
- Liquidity Efficiency: 250M injection ensures minimal slippage for large institutional orders across DeFi and settlement rails
- Operational Readiness: Proactive liquidity positioning shows Circle managing infrastructure ahead of anticipated demand surges
- Market Confidence: Minting amid strong institutional adoption narrative reinforces USDC as infrastructure backbone
- Infrastructure Maturation: Regular large-scale minting/redemption cycles signal operational maturity approaching traditional payment processors
Goldman Sachs released a comprehensive analysis identifying regulatory progress as the primary driver for accelerated institutional cryptocurrency adoption in 2026, particularly in relation to upcoming US market structure legislation. The bank’s research indicates 35% of institutions view regulatory uncertainty as the primary barrier to crypto asset adoption, while 32% identify regulatory clarity as the most important catalyst for expansion. Institutional asset managers currently allocate approximately 7% of portfolios to cryptocurrencies, with 71% planning increased exposure. Crypto ETFs demonstrate institutional appetite with Bitcoin and Ethereum ETFs accumulating $115 billion and $20 billion in assets respectively by year-end 2025. Goldman Sachs emphasizes that SEC leadership changes under the Trump administration, particularly Paul Atkins’ confirmation as chairman, have shifted regulatory stance from aggressive enforcement to supportive framework development. The bank projects market structure legislation passage in early 2026 as particularly important before mid-term elections later in the year could disrupt momentum.
Key Takeaways:
- Regulatory uncertainty vs. clarity functions as binary gate for institutional capital flows, with near-identical institutional responses showing clarity perception is critical threshold
- Current 7% institutional allocation with 71% planning increases suggests $1+ trillion capital reallocation potential within existing institutional portfolios
- $135 billion accumulated in spot crypto ETFs (Bitcoin + Ethereum) by end 2025 demonstrates ETF infrastructure maturation enabling smooth institutional access
- SEC leadership transition under Trump administration from enforcement to framework development creates permissive regulatory environment for innovation
- Early 2026 market structure legislation window is time-critical: mid-year elections create risk of regulatory momentum loss if bills not passed in Q1-Q2
Why It Matters:
- Goldman Sachs’ analysis quantifies the institutional capital unlock mechanism: regulatory clarity directly converts stored institutional demand into capital deployment
- The 35% vs. 32% split between uncertainty and clarity suggests institutional decision-making operates on simple binary framework, meaning regulatory bills have outsized impact potential
- $115 billion in Bitcoin ETF assets indicates infrastructure accessibility is no longer barrier; institution hesitation is now purely regulatory and confidence-driven
- SEC’s shift from enforcement (SAB 121 removal, SAB 122 clarification) to framework development directly reduces institutional capital requirements and accounting burdens
- This creates time-critical catalysts in January-June 2026 window: every regulatory bill passed materially accelerates institutional capital deployment
Tether, the issuer of the USDT stablecoin, has made a strategic investment in SQRIL, a payment technology startup that integrates banks, e-wallets, and fintech applications with real-time QR code payment systems. SQRIL will utilize the capital to accelerate development of infrastructure enabling stablecoin-powered payments at the point-of-sale and across digital finance platforms. The company provides an API-based solution that directly connects to banking systems and digital finance platforms, reducing friction between blockchain-based stablecoin networks and traditional payment rails. This investment aligns with Tether’s broader strategy to deepen stablecoin adoption beyond speculative trading into real-world commerce and settlement use cases, positioning stablecoins as everyday payment instruments rather than primarily financial trading assets.
Key Takeaways:
- Tether’s SQRIL investment indicates stablecoin adoption narrative shifting from trading infrastructure to merchant acceptance and daily commerce payments
- QR code integration with API-based banking connections represents practical bridge between blockchain-native systems and incumbent payment processor networks
- Investment focus on e-wallet and fintech integration suggests merchant adoption pathway through digital payment platforms already familiar to consumers
- Real-time payment capability aligns stablecoins with consumer expectations for instant settlement rather than traditional banking clearing delays
- Strategic timing coincides with GENIUS Act regulatory clarity, reducing perceived risk in mainstream payment infrastructure development
Why It Matters:
- Stablecoin infrastructure investments by core issuers signal genuine commitment to payment use cases beyond speculation, validating regulatory frameworks designed for payment settlement
- QR code interface represents lowest-friction adoption pathway for merchants unfamiliar with blockchain, reducing education and technical barriers
- API-based architecture enables rapid scaling across banking and fintech ecosystems without requiring wholesale payments system redesign
- When combined with GENIUS Act reserve requirements and audit mandates, Tether’s SQRIL investment demonstrates confidence that regulatory framework supports sustainable business model
- Point-of-sale infrastructure buildout directly enables competitive threat to traditional payment processors (Visa, Mastercard), validating institutional concerns driving Big Four engagement
Coinbase and Circle’s USDC are moving deeper into Asian retail payments through new initiatives in South Korea and Japan. In Korea, dominant card issuer BC Card, with 48 million cards in circulation, will integrate its QR-based payment solution with a wallet supporting USDC on the Base blockchain for a pilot at the point of sale. Merchants will still receive Korean won, making compliant foreign-currency settlement and monitoring crucial given Korea’s oversight of cross-border flows. In Japan, SBI VC Trade plans a demonstration in Osaka using USDC for cashless, QR-based payments, leveraging its existing relationship with Circle. Together, these pilots signal growing alignment between regulated financial institutions and dollar stablecoins in key Asian markets.
Key Takeaways:
- Coinbase partners with Korea’s largest card issuer, BC Card, to enable USDC payments on Base via QR at retail points of sale.
- Merchants in Korea will receive KRW, requiring compliant foreign-currency settlement processes under monitored FX rules.
- SBI VC Trade in Japan will run an Osaka demo using USDC and QR codes for cashless retail payments.
- BC Card has a dedicated digital asset subsidiary and stablecoin-related patents, positioning it for broader USDC use.
Why It Matters:
- Shows incumbents in Japan and Korea testing dollar stablecoins as everyday payment instruments, not just trading rails.
- Highlights how compliant FX and settlement design can make stablecoin payments acceptable to regulators.
- Signals growing competition between bank-led deposit tokens, CBDCs, and privately issued stablecoins in Asian retail.
- Suggests Base and USDC could gain strategic footholds in highly digital, card-dominated payment markets.
Jupiter has launched JupUSD, a reserve-backed, USD-pegged stablecoin built on Ethena Labs technology and positioned as infrastructure for “the next chapter of finance.” Ninety percent of JupUSD’s backing will initially come from USDtb, a licensed, GENIUS-compliant stablecoin secured by BlackRock’s BUIDL fund, complemented by a 10% USDC liquidity buffer to support redemptions and market operations. Although JupUSD itself is non-yielding, users can deploy it on Jupiter Lend for deposits, lending, and leveraged trading, gaining access to exclusive benefits and incentives. By depositing JupUSD into Lend’s yield vault, users receive jlJupUSD, unlocking promotional offers that aim to deepen liquidity and expand JupUSD’s utility across the Jupiter ecosystem.
Key Takeaways:
- JupUSD is a reserve-backed, dollar-pegged stablecoin built on Ethena Labs technology.
- 90% of reserves are USDtb (secured by BlackRock’s BUIDL fund), with 10% held in USDC as a liquidity buffer.
- JupUSD itself does not generate yield but can be used within Jupiter Lend for deposits, lending, and leveraged operations.
- Deposits into Lend’s yield vault issue jlJupUSD, paired with unique promotional offers to boost participation and liquidity.
Why It Matters:
- Shows how Solana-native platforms are integrating TradFi-grade collateral (via BlackRock’s BUIDL-linked USDtb) into on-chain stablecoin designs.
- Separating the base stablecoin from yield generation may help address regulatory and risk concerns around yield-bearing stablecoins.
- Deep integration with Jupiter Lend positions JupUSD as core collateral for trading, leverage, and liquidity strategies within the Jupiter ecosystem.
- Promotional incentives around jlJupUSD signal a push to quickly bootstrap depth, which could influence stablecoin market share on Solana.
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