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Weekly Global Stablecoin & CBDC Update
China is preparing to authorize 12 additional commercial banks to operate the digital yuan, expanding the number of e-CNY operating institutions from 10 to 22 and bringing 19 of the country’s 21 systemically important banks into the program. The newcomers include seven national joint-stock banks and five regional city commercial banks, such as Bank of Ningbo, which has already tendered for digital yuan system suppliers. A policy that took effect on January 1, 2026 reclassifies e-CNY balances as on-balance-sheet, interest-bearing deposits, giving banks a stronger commercial incentive to promote the CBDC. As of November 2025, e-CNY had processed about 3.5 billion transactions worth 16.7 trillion yuan (around 2.4 trillion dollars), with 230 million personal wallets and 18.8 million corporate wallets, although user inertia toward Alipay and WeChat Pay remains a hurdle.
Key Takeaways:
- People’s Bank of China plans to add 12 more e-CNY operating banks, raising the total from 10 to 22 and covering 19 of 21 systemically important lenders.
- Policy effective January 1, 2026 treats e-CNY as on-balance-sheet, interest-bearing deposit money rather than cash-like off-balance-sheet funds.
- Digital yuan pilots had processed 3.5 billion transactions totaling 16.7 trillion yuan by November 2025, with 230 million personal and 18.8 million corporate wallets opened.
- New operators include regional banks such as Bank of Ningbo, which is already procuring wallet and infrastructure vendors for e-CNY.
- Dominant private systems Alipay and WeChat Pay still command strong loyalty, limiting immediate migration to state-issued digital currency.
Why It Matters:
- Expansion of e-CNY operators validates that China is moving from small pilots toward system-wide CBDC infrastructure embedded in major banks.
- Reclassifying e-CNY as interest-bearing deposits signals a shift from experimental digital cash to fully integrated digital bank money.
- Bringing nearly all systemically important banks into the network indicates that traditional institutions are central to China’s CBDC strategy, not bypassed by it.
- Treating e-CNY as deposit money ties the CBDC directly into existing prudential, liquidity and deposit insurance frameworks.
- Higher bank incentives and broader distribution could accelerate CBDC adoption and influence how other jurisdictions design deposit-like digital currencies.
The latest RWA Weekly report shows the global stablecoin market capitalization slipping to 301.67 billion dollars, down 1.96 percent month-on-month, while monthly on-chain stablecoin transaction volume fell to 9.06 trillion dollars, an 8.98 percent decline that ends a two-month rebound. Despite softer activity, the user base continues to expand: monthly active addresses dropped 5.86 percent to 49.02 million, but total holders climbed 4.98 percent to 238 million, indicating a shift toward allocation-driven holding rather than transaction-heavy use. USDT’s market cap fell 4.67 percent, while USDC rose 3.61 percent and USDS jumped 23.07 percent over the month. Separate analysis cited in the digest estimates 2025 deduplicated on-chain stablecoin volume at roughly 25 trillion dollars, but less than 1 percent reflects real payments; around 132 billion dollars in stablecoin payments flowed through 15 leading crypto payment firms.
Key Takeaways:
- Global stablecoin market cap stands at 301.67 billion dollars, down 1.96 percent month-on-month, with monthly on-chain volume at 9.06 trillion dollars, down 8.98 percent.
- Monthly active stablecoin addresses fell to 49.02 million, a 5.86 percent decline, while total holders increased to 238 million, up 4.98 percent.
- USDT’s market capitalization contracted 4.67 percent month-on-month, compared with a 3.61 percent increase for USDC and a 23.07 percent surge for USDS.
- Deduplicated 2025 on-chain stablecoin volume is estimated at about 25 trillion dollars, but less than 1 percent is tied to real-payment use cases.
- Around 132 billion dollars in stablecoin payments were processed by 15 major crypto payment institutions in 2025, versus roughly 4.5 billion dollars via international card networks for related flows.
Why It Matters:
- The data confirms that stablecoins have become a large, systemically relevant segment of digital finance, even as trading-driven flows still dominate usage.
- Rising holder numbers alongside weaker transactional activity suggest stablecoins are maturing into a portfolio and treasury tool, not just a trading chip.
- The tiny share of activity linked to real-world payments highlights how much growth potential remains for stablecoins in commerce and remittances.
- Comparisons with card-network volumes show traditional rails still handle most regulated consumer payments, but stablecoin rails are catching up in cross-border and B2B niches.
- Forecasts around Hong Kong’s forthcoming licensing regime and broader regulatory clarity point to a future where stablecoins operate as regulated financial infrastructure bridging banks, tokenized assets and DeFi.
Paywint, a US-based fintech and digital wallet provider for businesses, announced the launch of a cross-border payments offering spanning more than 200 countries, aiming to provide faster, lower-cost alternatives to traditional international transfers. The service combines a multi-currency business wallet with real-time FX rates, transparent fee breakdowns and end-to-end payment tracking, allowing firms to send and receive funds directly to bank accounts while avoiding complex new banking relationships. Paywint’s infrastructure integrates Instant ACH, Same Day ACH, RTP, wires and instant virtual bank accounts from a single wallet interface, and also supports virtual and physical corporate cards for spending and payouts. Citing PYMNTS research that 42 percent of consumers now prefer digital wallets for cross-border payments, the company positions its platform as a global-first, API-driven solution for marketplaces, SaaS providers and gig-economy platforms seeking borderless, real-time settlement.
Key Takeaways:
- Paywint launched a cross-border payments network covering over 200 countries, delivered through a digital wallet targeted at business clients.
- The platform offers multi-currency support with real-time exchange rates, transparent fee disclosure and end-to-end payment status tracking.
- Integrated rails include Instant ACH, Same Day ACH, RTP, wire transfers and instant virtual bank accounts, all accessible from a single wallet interface.
- The company highlights research showing 42 percent of consumers prefer digital wallets for cross-border payments, underscoring strong demand for wallet-based rails.
- Paywint also provides virtual and physical cards plus crypto-payment support, positioning its wallet as a unified treasury and payout hub for marketplaces and global SMEs.
Why It Matters:
- The launch illustrates how digital wallets are evolving from consumer tools into full-stack cross-border payment infrastructure for businesses.
- Growing preference for wallet-based payments signals continued migration away from legacy correspondent-banking flows toward instant, API-driven rails.
- Integration of ACH, RTP, wires and card payouts in a single wallet shows how fintechs are stitching together old and new payment systems rather than replacing them outright.
- Direct support for crypto wallets alongside bank rails highlights the convergence of digital assets and traditional payments in corporate treasury workflows.
- As more providers offer global, real-time settlement, competitive pressure on fees and speed is likely to reshape expectations for cross-border B2B and platform payments.
US lawmakers and the White House have reached an agreement in principle on how to regulate yield on stablecoin balances inside the Digital Asset Market Clarity (CLARITY) Act, resolving the dispute that had stalled the bill in the Senate Banking Committee since January. Senators Thom Tillis and Angela Alsobrooks agreed to prohibit yield on passive stablecoin holdings while preserving room for activity-based rewards tied to payments and platform use, addressing banks’ concerns about deposit flight without fully banning stablecoin incentives. The deal follows months of pressure from both banking lobbyists and crypto firms and is framed as a compromise that protects innovation while preventing bank funding erosion. Committee leaders are now targeting a late April markup, but remaining issues on DeFi, ethics rules, and illicit finance safeguards must be resolved before the bill can advance to the full Senate.
Key Takeaways:
- Senators Thom Tillis and Angela Alsobrooks reached an agreement in principle on stablecoin yield rules inside the CLARITY Act.
- Proposed language bans yield on passive stablecoin balances while allowing activity-based rewards linked to payments and platform usage.
- Senate Banking Committee markup is now tentatively targeted for the second half of April, after the Easter recess.
- White House Crypto Council executive Patrick Witt called the yield compromise a major milestone, while noting other policy issues remain open.
- DeFi treatment, ethics restrictions on officials’ personal crypto holdings, and illicit finance provisions are still being negotiated before any floor vote.
Why It Matters:
- Stablecoin yield rules will determine whether regulated dollar tokens can compete with bank deposits or remain narrowly utility focused.
- The compromise signals that US policymakers are moving from abstract debate to concrete guardrails for stablecoin business models.
- Banks, crypto platforms, and investors gain clearer visibility into how future US rules may balance innovation against deposit flight concerns.
- Clarifying yield treatment is central to integrating payment stablecoins into mainstream financial infrastructure under the GENIUS Act framework.
- Progress on the CLARITY Act shapes the long term regulatory environment for US crypto markets, influencing where capital, products, and talent are deployed.
New analysis highlights that USD Coin (USDC) has overtaken Tether (USDT) in actual transaction usage, even as USDT remains the largest stablecoin by market capitalization. Estimated total stablecoin transfers reached about 1.8 trillion dollars in February, with USDC processing roughly 1.26 trillion dollars of that activity versus around 514 billion dollars for USDT. Year to date, USDC has facilitated about 2.2 trillion dollars in adjusted transaction volume compared with roughly 1.3 trillion dollars for USDT, giving USDC close to 64 percent of combined adjusted volume between the two tokens. Despite this flow leadership, USDT still holds about 184 billion dollars in market cap against under 80 billion dollars for USDC, underscoring a divergence between stored value and real economic usage.
Key Takeaways:
- Stablecoin transfers climbed to roughly 1.8 trillion dollars in February, the highest level in recent months.
- USDC handled about 1.26 trillion dollars of February transfers versus approximately 514 billion dollars for USDT.
- Year to date, USDC has processed around 2.2 trillion dollars in adjusted transaction volume, ahead of USDT’s roughly 1.3 trillion dollars.
- Market capitalization still favors USDT at roughly 184 billion dollars, with USDC below 80 billion dollars.
- Regulatory clarity and banking guidance are cited as catalysts for institutional adoption of USDC in payment and settlement flows.
Why It Matters:
- The data supports the view that stablecoins are evolving from trading tools into core payment and settlement infrastructure.
- Rising USDC usage suggests growing institutional preference for regulated, transparent dollar tokens in on chain finance.
- The split between USDT’s store of value role and USDC’s transaction leadership points to specialization across different stablecoin use cases.
- Integration of stablecoins into bank and corporate payment rails tightens links between digital assets and traditional financial systems.
- Persistent volume leadership could strengthen USDC’s position in future cross border payments, DeFi collateral, and tokenized treasury workflows.
A new analysis drawing on Visa, Mastercard, and Gartner reporting finds that financial institutions and enterprises are standardizing on AI enhanced, real time payment rails and embedded finance as core infrastructure rather than experimental add ons. Banks are layering orchestration platforms and open banking APIs on top of card networks and instant payment systems to improve authorization rates, fraud control, and cash visibility across channels. Processors such as Stripe, Adyen, and PayPal are packaging network tokenization, AI driven risk scoring, and smart routing into APIs that let merchants tune for both acceptance and cost, while meeting compliance expectations like GDPR, SOC 2, and ISO 27001. Analyst frameworks from Gartner, McKinsey, and Forrester cited in the piece indicate that modernization spend is concentrating where measurable uplifts in authorization, fraud loss, and working capital can be demonstrated.
Key Takeaways:
- Visa and Mastercard are investing in AI powered network services, tokenization, and real time decisioning as baseline capabilities for issuers and merchants.
- Banks such as JPMorgan and Goldman Sachs are integrating real time rails and ISO 20022 schemas to enhance treasury, payables, and remittance data quality.
- Processors including Stripe, Adyen, and PayPal are scaling orchestration, network tokenization, and fraud controls through merchant facing APIs.
- Governance frameworks like GDPR, SOC 2, ISO 27001, and regional AML and KYC rules heavily influence architecture and vendor selection.
- Analyst research from Gartner, McKinsey, and Forrester identifies authorization uplift, fraud reduction, and real time cash visibility as primary ROI drivers.
Why It Matters:
- The shift confirms that digital payments and embedded finance are now treated as core infrastructure for revenue growth and risk management, not side projects.
- Standardization on real time rails and data rich formats like ISO 20022 signals a long term transition away from legacy batch and card centric flows.
- Traditional networks, banks, and cloud native processors are competing and partnering to control key layers like tokenization, orchestration, and identity.
- Deep integration of payment data into enterprise systems tightens the connection between digital payment rails and legacy banking infrastructure.
- Strategic focus on explainable AI, compliance, and observability suggests that future digital currency and stablecoin rails will be evaluated against similar enterprise grade criteria.
The Bank of Korea has begun Phase 2 of “Project Hangang,” expanding its central bank digital currency pilot to nine commercial banks and positioning the program as a testbed for deposit token based payment systems in real services. Kyongnam Bank and iM Bank have joined the original seven participants, which include KB Kookmin, Shinhan, Woori, Hana, IBK, NH Nonghyup and Busan Bank, broadening the scope of CBDC-linked experiments across Korea’s banking sector. Banks plan to trial CBDC backed deposit tokens within their own platforms and explore links to insurance and other financial products, with improved incentives compared with the first round of testing. Industry sources view Phase 2 as a key step in validating operational stability and real world feasibility of CBDC based infrastructure, while accelerating parallel discussions on digital payment rails in the country.
Key Takeaways:
- Bank of Korea has launched Phase 2 of “Project Hangang” to advance CBDC commercialization.
- Kyongnam Bank and iM Bank join seven existing participants, bringing total pilot banks to nine.
- Participating banks plan to use CBDC backed deposit tokens as a payment method in real services.
- The banking sector intends to link token based payments to existing platforms and potentially insurance products.
- Industry participants describe Phase 2 as a crucial test of CBDC feasibility and operational stability in live environments.
Why It Matters:
- CBDC pilots at national scale demonstrate how central bank money can be integrated into everyday digital payments.
- Expanded bank participation signals rising institutional confidence in tokenized payment infrastructure.
- Successful use of deposit tokens could encourage broader adoption of programmable, ledger based payment systems.
- Linking CBDC infrastructure to commercial bank platforms helps bridge central bank money with existing retail financial services.
- The project’s focus on real world use cases positions Korea as an important reference point for future CBDC system design.
The US Securities and Exchange Commission and Commodity Futures Trading Commission have issued a joint interpretive rule outlining how federal securities laws apply to five categories of crypto assets, including stablecoins, in a move published in the Federal Register. The framework classifies crypto assets as digital commodities, digital collectibles, digital tools, stablecoins, or digital securities, and confirms that payment stablecoins defined in the GENIUS Act and “covered stablecoins” identified in prior SEC staff guidance are not treated as securities by statute, while other stablecoins remain subject to facts-and-circumstances analysis. The interpretation explains how non security tokens can become subject to, and later cease to be subject to, investment contracts under the Howey test, and clarifies that activities such as proof of work or proof of stake validation, certain staking receipt tokens, wrapping and some airdrops generally do not constitute securities offerings.
Key Takeaways:
- SEC and CFTC have jointly issued an interpretive rule on crypto assets titled “Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets.”
- The rule establishes a five category taxonomy covering digital commodities, digital collectibles, digital tools, stablecoins and digital securities.
- Payment stablecoins defined in the GENIUS Act and “covered stablecoins” from earlier SEC staff guidance are excluded from the securities definition, while other stablecoins require case specific analysis.
- The interpretation describes when a non security crypto asset can become, and later cease to be, part of an investment contract under federal securities law.
- The guidance states that network validation, certain staking structures, wrapping and some airdrops generally do not involve offers or sales of securities.
Why It Matters:
- A formal joint taxonomy from both market regulators provides long sought clarity on how many digital assets are treated under US securities and commodities law.
- Clearer treatment of stablecoins and digital commodities helps issuers, platforms and institutional investors structure products and compliance programs with less legal uncertainty.
- The approach narrows the circumstances in which day to day network activities and secondary trading are likely to trigger securities regulation, which may support broader participation.
- Differentiating payment stablecoins from investment type tokens aligns securities law with the GENIUS Act framework that positions regulated stablecoins as part of the core payments infrastructure.
- The interpretation creates a reference point for future legislative efforts and could influence how other jurisdictions refine their own digital asset classifications.
The Internal Revenue Service has released Internal Revenue Bulletin 2026–13, which includes proposed regulations that would allow brokers to furnish Form 1099 DA “Digital Asset Proceeds From Broker Transactions” statements electronically under an alternative consent framework tailored to digital asset customers. The proposal recognizes that most digital asset transactions and broker interactions occur online, and argues that mandatory paper statements can impose significant compliance costs without commensurate benefits. Under the new option, brokers could require electronic delivery consent as a condition of service for 1099 DA statements, provided they meet enhanced disclosure, notice, access and fallback requirements, including website or app posting with prominent electronic notifications and defined retention and access periods. The bulletin also requests broader public comment on modernizing electronic furnishing rules for other composite 1099 B statements and whether to include staking reward Form 1099 MISC items in composite packages.
Key Takeaways:
- IRS Internal Revenue Bulletin 2026–13 introduces proposed regulations (REG 105064 25) for electronic furnishing of Form 1099 DA digital asset proceeds statements.
- Brokers could obtain electronic delivery consent for 1099 DA statements through an optional alternative process that does not require offering a paper option or withdrawal rights, subject to strict conditions.
- Proposed rules would require brokers to provide clear disclosures, send electronic notices when statements are available, and maintain online access for at least through October 15 of the following year.
- The bulletin notes that digital asset transactions are primarily electronic and that paper delivery can impose significant compliance burdens on brokers without proportional benefits for customers.
- Notice 2026 4 within the same bulletin seeks comments on updating electronic furnishing rules for other payee statements and on whether to add certain Form 1099 MISC staking rewards to composite 1099 B statements.
Why It Matters:
- Aligning 1099 DA reporting mechanics with the digital native nature of crypto trading strengthens the link between tax infrastructure and on chain activity.
- Easier electronic delivery of digital asset tax statements could improve reporting accuracy and compliance by matching how investors already receive platform information.
- Modernized electronic furnishing rules reduce operational friction for brokers as digital asset transaction volumes and reporting obligations expand.
- Potential inclusion of staking related income in composite statements would further integrate emerging crypto yield activities into familiar tax reporting formats.
- The comment process signals that US tax authorities are actively adapting information reporting frameworks to the growth of digital assets as a mainstream asset class.
Resolv Labs’ USR algorithmic stablecoin suffered a severe smart contract exploit that allowed an attacker to mint between 50 and 80 million unbacked USR tokens against only 100,000 to 200,000 dollars of USDC collateral, then dump them for other assets. The attacker extracted an estimated 23 to 25 million dollars via swaps into USDC, USDT and ETH before the protocol was paused. The flood of unbacked supply drove USR from its one dollar peg to intraday lows around 0.12 to 0.15 dollars, with a partial recovery to about 0.47 dollars as trading volume spiked more than 35,000 percent to over 11.2 million dollars. Resolv Labs says the underlying collateral pool remains intact and that user collateral is fully backed, with the vulnerability isolated to minting and swap completion logic. Several integrated DeFi platforms have paused USR markets while the team investigates recovery options.
Key Takeaways:
- An attacker used only 100,000 to 200,000 dollars of USDC to mint 50 to 80 million unbacked USR, a leverage of roughly 250 times.
- Around 23 to 25 million dollars was extracted by converting USR and wstUSR into other stablecoins and then into ETH.
- USR fell from one dollar to roughly 0.12 to 0.15 dollars before recovering to about 0.47 dollars, a 53 percent daily drop.
- Total supply ballooned to about 298 million tokens and market cap sits near 88 million dollars after the de-peg.
- Resolv Labs has paused all protocol functions and asserts that user collateral remains fully safe, with losses confined to the protocol.
Why It Matters:
- Underscores persistent smart contract and oracle risks in yield bearing and algorithmic stablecoin designs.
- Adds to regulators’ concerns about undercollateralized or complex stablecoins that can fail abruptly despite apparently conservative designs.
- Reinforces the case for stricter pre deployment audits and continuous on chain monitoring of stablecoin minting logic.
- Shows how a single exploit can trigger large secondary effects across DeFi platforms that list the affected stablecoin.
- May accelerate the shift by institutions toward fully reserved, regulated payment stablecoins and tokenized deposits.
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