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Weekly Global Stablecoin & CBDC Update
This Week's Stories
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.
Delaware legislators introduced a two bill package that modernizes state banking law and creates a dedicated licensing framework for payment stablecoin issuers and digital asset service providers serving Delaware residents. Senate Bill 16, the Delaware Banking Modernization Act, updates Title 5 by defining digital assets, expanding the State Bank Commissioner’s authority, and revising governance and interstate trust company provisions to reflect contemporary financial services. Senate Bill 19, the Delaware Payment Stablecoin Act, would require payment stablecoin issuers to meet reserve, capital, redemption timing, anti money laundering, data privacy and custody standards aligned with the federal GENIUS Act, while empowering the Commissioner to write detailed rules on timelines. The package is positioned as an evolution of the 1981 Financial Center Development Act that originally made Delaware a national credit card hub, with state leaders emphasizing financial inclusion and fintech innovation, including a potential university stablecoin pilot.
Key Takeaways:
- Delaware proposes SB 16 to overhaul decades old banking code, explicitly defining digital assets and expanding supervisory authority.
- SB 19 establishes a licensing framework for payment stablecoin issuers and digital asset service providers operating with Delaware residents.
- Proposed rules mirror GENIUS Act concepts, including reserve shortfall remediation, mandatory redemption timelines and capital standards.
- State Bank Commissioner is directed to promulgate implementing regulations within specified deadlines to track evolving federal policy.
- University of Delaware leaders reference a potential campus stablecoin pilot as part of the fintech ecosystem built around the new laws.
Why It Matters:
- Delaware’s move shows US states are racing to align with and complement federal stablecoin and digital asset frameworks.
- A clear state level licensing regime could attract payment stablecoin issuers seeking predictable rules and charter options outside Washington.
- Integration of AML, privacy and custody safeguards reflects regulators’ intent to treat stablecoin infrastructures like core financial plumbing.
- Coordination with the GENIUS Act helps bridge federal standards and local supervision for stablecoin activity affecting residents.
- The package underscores how digital assets and stablecoins are becoming central to state economic development and financial inclusion agendas.
The Reserve Bank of India is engaging with central banks in Asia and Europe to build interoperable CBDC-based rails for both wholesale and retail cross-border payments, aiming to cut costs and settlement times for remittances. The discussions focus on shared transaction frameworks that only deliver full benefits if multiple jurisdictions deploy compatible CBDC systems. Remittance flows to India remain strong, with inflows crossing 107 billion dollars so far in FY26 after a record 132 billion dollars the previous year, underscoring the scale of payments that could shift to CBDC infrastructure. RBI is expanding pilots launched in late 2022, with transaction volumes already above 120 million and participation from millions of users, while keeping rollout gradual and programmable use cases under test. The central bank reiterates that CBDCs, not privately issued stablecoins, should anchor next generation cross-border payments.
Key Takeaways:
- Reserve Bank of India is working with several Asian and European central banks on interoperable CBDC rails for cross-border use.
- India’s remittance inflows have exceeded 107 billion dollars in FY26 after reaching 132 billion dollars the prior year.
- Retail CBDC pilots have processed more than 120 million transactions with participation from millions of users.
- RBI is prioritising programmable payments and government linked use cases before any full scale launch.
- RBI publicly urges countries to prioritise CBDCs over stablecoins to maintain trust in money and financial stability.
Why It Matters:
- Cross-border CBDC corridors validate that central banks see digital sovereign money as a practical alternative to private stablecoins for remittances.
- Strong remittance flows combined with CBDC pilots signal that large value corridors could be early adopters of tokenised central bank money.
- The initiative shows traditional monetary authorities moving to replatform cross-border payments rather than leaving the field to crypto issuers.
- Interoperable CBDC systems would link directly into existing payment infrastructure, reducing reliance on correspondent banking chains.
- RBI’s stance foreshadows a regulatory environment where CBDCs are preferred over stablecoins for systemic payment functions.
Shares of Circle Internet Group dropped by as much as 20 percent, the steepest intraday decline in the company’s history, after reports that a new draft of the U.S. Clarity Act could sharply restrict rewards on stablecoin balances. The proposal, as described to market participants, would bar platforms from offering yield “directly or indirectly” on stablecoin holdings in ways that resemble bank deposits, directly challenging revenue models built around sharing reserve income. Coinbase, which partners with Circle on USDC and shares in reserve earnings, fell about 8 percent in the same session. The selloff followed a rapid rally in Circle’s stock from roughly 60 dollars in late February to about 130 dollars, driven by stronger stablecoin circulation, higher interest income on reserves, and expectations of steady Federal Reserve rates.
Key Takeaways:
- Circle stock fell by up to 20 percent intraday, its largest recorded single session drop.
- Coinbase shares declined about 8 percent on the same day amid concerns over shared USDC reward economics.
- Draft Clarity Act language would prohibit yield structures on stablecoins that function like bank interest.
- Circle’s share price had approximately doubled from around 60 dollars to 130 dollars in recent weeks before the reversal.
- Circle’s revenues are heavily tied to interest earned on reserves backing USDC and related payment infrastructure.
Why It Matters:
- The reaction underscores how dependent major stablecoin issuers are on yield style incentives to attract and retain capital.
- Draft restrictions suggest policymakers want stablecoins used primarily for transactions, not as interest bearing savings instruments.
- Equity market moves show investors increasingly price regulatory risk on par with on chain growth metrics for stablecoins.
- Limiting rewards would narrow the overlap between stablecoins and traditional bank deposits, reinforcing regulatory boundaries.
- The episode highlights that future stablecoin business models must balance regulatory compliance with viable economics at scale.
Mexican digital commerce platform Clip announced that merchants can now accept in person contactless payments using Tap to Pay on iPhone within the Clip app, eliminating the need for additional payment terminals. The feature supports contactless credit and debit cards, Apple Pay, and other digital wallets on iPhone XS or later devices running the latest iOS version, and is available across Mexico starting immediately. The company frames the rollout as a way to improve payment accessibility for millions of small and mobile businesses that need to take card and wallet payments without investing in dedicated hardware. Tap to Pay on iPhone uses Apple’s built in security features and allows Clip merchants to issue digital receipts via SMS or email, aligning with Clip’s broader push to democratise digital payments and advance financial inclusion in the country.
Key Takeaways:
- Clip has enabled Tap to Pay on iPhone inside its app so merchants can accept contactless payments without extra hardware.
- The solution supports contactless cards, Apple Pay, and other digital wallets on iPhone XS or newer devices.
- The service is available nationwide in Mexico starting March 24, using NFC for in person payments.
- Clip emphasises benefits for mobile and small businesses that need immediate, low friction payment acceptance.
- Digital receipts can be sent via SMS or email, reinforcing fully digital transaction flows.
Why It Matters:
- The launch shows how software based acceptance is lowering barriers to entry for small merchants in digital payments.
- Broader Tap to Pay adoption signals continued migration from cash toward contactless and wallet based transactions in emerging markets.
- Allowing any compatible smartphone to act as a terminal reduces dependence on traditional point of sale hardware providers.
- Integration with Apple’s security stack helps align new acceptance methods with established card network risk standards.
- Expansion of low cost acceptance tools strengthens digital commerce infrastructure and supports financial inclusion objectives in Mexico.
Wharton’s Future of Finance Forum published a detailed recap of a panel with Fed Governor Michael Barr, former CFTC Chair Timothy Massad, and Circle policy executive Corey Then on how the GENIUS Act is reshaping the U.S. stablecoin landscape. The discussion highlights that GENIUS requires payment stablecoins to be backed one to one with short term liquid assets such as cash and Treasury bills, with monthly reserve disclosures and strict marketing rules that bring them into the regulated perimeter while preserving room for state regimes that are “substantially similar.” Panelists credit the Act with supporting a jump in annual stablecoin transaction volumes from roughly 1 trillion dollars to 4 trillion dollars, but flag gaps around permitted repo structures, AML controls, and the unresolved question of exchange paid yield on idle balances. They contrast fully reserved stablecoins with tokenized deposits and CBDCs, generally favoring wholesale CBDCs over retail ones.
Key Takeaways:
- GENIUS mandates 100 percent reserve backing in liquid assets and monthly reserve disclosure for payment stablecoins.
- The Act brings stablecoins into a clear regulatory perimeter while allowing states to run aligned licensing regimes.
- Panelists say transaction volumes have surged from about 1 trillion to 4 trillion dollars since GENIUS passed.
- Key gaps include repo eligibility, AML enforcement under the Bank Secrecy Act, and the treatment of exchange paid yield.
- Speakers see stablecoins, tokenized deposits, and wholesale CBDCs coexisting, with skepticism about retail CBDCs in the U.S. context.
Why It Matters:
- Provides one of the clearest expert roadmaps for how GENIUS will actually change stablecoin design and supervision.
- Confirms that regulators view reserve quality and redemption at par under stress as the core stability test.
- Highlights that stablecoins are already significant holders of U.S. Treasuries, raising Treasury market stability questions.
- Frames stablecoins as tools for payments, remittances, tokenization and Treasury management, not just crypto trading chips.
- Underscores that the U.S. currently prefers privately issued dollar stablecoins and tokenized bank money over a retail CBDC.
Rain, an enterprise stablecoin payments infrastructure provider, announced a major expansion of its Visa membership into Asia Pacific, giving it a regulated issuing footprint to support consumer and corporate credit card programs across some of the world’s most digitally active economies. The company already issues stablecoin backed cards accepted at more than 150 million merchants in 150 countries; the APAC move makes it one of the few stablecoin platforms with direct Visa membership at this scale. Rain emphasizes that stablecoins power settlement “behind the scenes” while end users transact via familiar Visa cards, enabling use cases from instantly spendable remittances to multi currency corporate treasury and global payouts. Citing IMF data, the release notes that APAC processed more than 500 billion dollars in stablecoin transactions in 2024, making it the second largest region globally after North America.
Key Takeaways:
- Rain is expanding its Visa issuing membership into APAC, adding a regulated regional footprint to its stablecoin card stack.
- The platform already supports cards usable at over 150 million merchants in 150 countries.
- APAC handled more than 500 billion dollars in stablecoin transactions in 2024, ranking second globally after North America.
- Use cases include consumer spend, instantly spendable remittances, and corporate treasury and payout flows.
- Stablecoins handle settlement in the background while preserving the standard Visa card experience for cardholders.
Why It Matters:
- Demonstrates stablecoins being embedded into mainstream card networks rather than remaining siloed in crypto wallets.
- Strengthens APAC’s role as a leading region for real world stablecoin payments and remittance innovation.
- Offers banks, neobanks, and platforms a turnkey way to launch global card programs powered by tokenized dollars.
- Illustrates how stablecoins can improve settlement speed and cost without forcing merchants or consumers to change behavior.
- Adds competitive pressure on other networks and issuers to match stablecoin based cross border capabilities.
European Central Bank Executive Board member Piero Cipollone outlined a roadmap to build an integrated European digital asset ecosystem, centered on a new settlement anchor called Pontes and a broader Appia strategy for tokenised markets. In a speech to the House of the Euro, he said European issuers have placed nearly €4 billion in distributed ledger based instruments since 2021, and recent interoperability trials processed about €1.6 billion in transactions with 64 participants across nine jurisdictions. Pontes, due to launch in the third quarter of 2026, will enable central bank money settlement on DLT platforms, while Appia aims to deliver a full blueprint for tokenised finance by 2028. The Eurosystem will also begin accepting DLT based assets as eligible collateral for credit operations, anchoring these markets within MiCA’s regulatory framework.
Key Takeaways:
- European issuers have placed close to €4 billion in DLT based fixed income instruments since 2021
- ECB interoperability trials processed around €1.6 billion with 64 participants across nine jurisdictions
- Pontes settlement anchor is scheduled to launch in the third quarter of 2026 for DLT based central bank money settlement
- Appia roadmap targets a complete European tokenised financial ecosystem blueprint by 2028
- DLT based assets will become eligible collateral for ECB credit operations starting in March 2026
Why It Matters:
- The roadmap shows major central banks are moving from pilots toward production infrastructure for tokenised assets
- Growing tokenised issuance and trials indicate a structural shift in how securities and collateral will be issued and settled
- Formal acceptance of DLT assets as collateral brings digital instruments into core central bank operations and risk frameworks
- Integration with MiCA aligns tokenised markets with Europe’s broader regulatory approach to digital assets and stablecoins
- A unified settlement anchor reduces fragmentation, supporting cross platform liquidity and deeper secondary markets for digital assets
Visa announced it will join the Canton Network as the first major global payments company to serve as a Super Validator, extending privacy preserving blockchain infrastructure to banks and financial institutions. As one of 40 Super Validators, Visa will help secure the network and guide governance while enabling institutions to test and scale blockchain based payment, settlement and treasury use cases without changing existing risk and compliance frameworks. Canton is designed for regulated finance with a configurable privacy model that keeps sensitive data, such as payroll or trading positions, off public view while allowing interoperable on-chain settlement. The move builds on Visa’s broader stablecoin strategy, including an annualised run rate of $4.6 billion in stablecoin settlement and more than 130 stablecoin linked card programs across over 50 countries, supported by a dedicated Stablecoins Advisory Practice.
Key Takeaways:
- Visa will act as a Super Validator on Canton Network, joining a set of 40 institutional validators
- Canton is positioned as a public, permissionless blockchain tailored for regulated finance with built in privacy controls
- Visa’s stablecoin settlement volume has reached an annualised run rate of about $4.6 billion globally
- More than 130 stablecoin linked card programs in over 50 countries already run on Visa’s network
- Visa Consulting & Analytics operates a Stablecoins Advisory Practice to help institutions design on-chain and stablecoin strategies
Why It Matters:
- Visa’s role as a validator shows large payment networks are moving beyond pilots into operating core pieces of blockchain infrastructure
- Privacy preserving chains like Canton address a key barrier for banks that cannot expose transactional data on public ledgers
- Stablecoin settlement volumes on Visa indicate rising institutional comfort using token based rails under traditional card brands
- Linking capital markets tokenisation on Canton with Visa’s payment capabilities tightens integration between digital assets and legacy rails
- The partnership may accelerate institutional adoption of stablecoin powered settlement in cross border payments, treasury and securities workflows
Move Industries, core contributor to the Movement Network, launched USDCx, a new dollar stablecoin natively issued on the Movement M1 Mainnet and fully backed 1:1 by USDC held in Circle’s xReserve smart contract, with reserves transparently recorded on-chain. Unlike bridged stablecoins that rely on third‑party bridge contracts and fragment liquidity, USDCx is minted directly on Movement against USDC deposited to xReserve and connects to USDC across more than 30 blockchains via Circle CCTP and Circle Gateway. The project targets everyday payments, remittances and financial access in the Global South by offering near‑zero‑fee transfers and a native DeFi liquidity asset for the Movement ecosystem. USDCx launches with integrations across DEXs, lending protocols, yield aggregators, wallets, gaming apps, and institutional custodians including Fireblocks and MPC Vault, positioning it as the primary stablecoin rail on Movement from day one.
Key Takeaways:
- USDCx is a native Movement M1 stablecoin fully backed 1:1 by USDC held in Circle’s xReserve smart contract, with reserves visible on-chain.
- It avoids third‑party bridges, reducing fragmentation and security risk compared with bridged stablecoins.
- USDCx can interoperate with USDC on 30+ chains via Circle CCTP and Circle Gateway, giving it immediate crosschain reach.
- The design focuses on real‑world use in the Global South, emphasizing near‑zero‑fee payments and remittances.
- Day‑one integrations span DeFi protocols, wallets, gaming apps and institutional infrastructure, including Fireblocks and MPC Vault.
Why It Matters:
- Shows how a new L1 is using native, fully backed USDC infrastructure to avoid the liquidity and security issues of bridged stablecoins.
- Strengthens the role of USDC as base collateral and payments rail across emerging ecosystems, particularly in high‑growth Global South markets.
- Gives neobanks and fintechs building on Movement a compliant, institution‑ready stablecoin for payments, lending and on-chain financial products.
- Demonstrates how issuer‑controlled crosschain mechanisms (xReserve plus CCTP/Gateway) can unify liquidity across dozens of chains.
- Adds another example of stablecoins moving from trading infrastructure into everyday payments and financial‑access use cases.
Polygon reported that Revolut has processed more than 1.2 billion dollars in cumulative stablecoin transfers on Polygon, as Europe’s most valuable fintech deepens its use of the network for low cost cross border payments. Revolut’s stablecoin payment volumes across all supported chains reached an estimated 10.5 billion dollars in 2025, up 156 percent year over year, with Polygon providing the cheapest settlement layer: gas fees for Revolut transactions are typically 426 times higher on Ethereum and four times higher on Solana. Within the Revolut app, users in the UK and EEA can send and receive USDC and USDT over Polygon, on ramp from bank accounts, spend via a crypto card, and stake POL, while the blockchain infrastructure remains invisible. The milestone comes as Revolut files for a U.S. national bank charter, positioning it to combine Fedwire and ACH access with stablecoin based onchain settlement.
Key Takeaways:
- Revolut has crossed 1.2 billion dollars in cumulative stablecoin volume on Polygon.
- Polygon is Revolut’s lowest cost network, with Ethereum gas typically 426 times and Solana about four times more expensive.
- Revolut’s total stablecoin payment volumes grew 156 percent year over year in 2025 to about 10.5 billion dollars across chains.
- Revolut users can send and receive USDC and USDT, on ramp from bank accounts, spend via crypto cards, and stake POL on Polygon.
- Revolut has filed for a U.S. national bank charter, which would pair traditional bank rails with its blockchain settlement stack.
Why It Matters:
- Provides a concrete, production scale example of a major regulated fintech using stablecoins for cross border payments, not just trading.
- Shows how low fee L2 infrastructure like Polygon can make stablecoin transfers cost competitive with, or superior to, legacy rails.
- Demonstrates that users can benefit from stablecoin rails without needing to interact directly with wallets or blockchains.
- Signals a future where chartered banks may run stablecoin and tokenized payment flows alongside traditional deposit and card businesses.
- Reinforces Polygon’s positioning as institutional stablecoin infrastructure for other large fintechs and payment companies.
Visa and Dune data show that euro‑denominated stablecoins now account for more than 80 percent of the non‑US dollar stablecoin market, with total non‑USD supply around 1.2 billion dollars and monthly non‑dollar stablecoin transaction volumes near 10 billion dollars. Euro stablecoins capture roughly 85 percent of non‑USD transaction volume, with Circle’s EURC emerging as the dominant asset and surpassing 506 million dollars in supply by end‑February. The article notes that most euro‑stablecoin transactions are linked to payments, remittances, payroll, and treasury operations rather than speculative trading, and credits the EU’s MiCA regime for providing regulatory clarity that is accelerating adoption. Despite this growth, the piece stresses that euro stablecoins remain small compared to the 300–316 billion dollar global stablecoin market, where dollar‑pegged tokens still dominate liquidity.
Key Takeaways:
- Euro stablecoins make up over 80 percent of the non‑USD stablecoin market, which totals about 1.2 billion dollars in supply.
- Non‑USD stablecoins see roughly 10 billion dollars in monthly transaction volume, 85 percent of which is in euro‑denominated tokens.
- Circle’s EURC leads the segment, with supply above 506 million dollars as of late February.
- Around 80 percent of euro‑stablecoin transactions are tied to payments, remittances, payroll, and treasury rather than trading.
- EU MiCA regulation and card‑network support for EURC settlements are key drivers of euro‑stablecoin adoption.
Why It Matters:
- Confirms that non‑USD stablecoins, especially euro‑pegged tokens, are starting to gain meaningful traction in real‑economy use cases.
- Highlights Europe’s regulatory‑driven approach (MiCA) as a catalyst for stablecoin adoption in payments and corporate treasury.
- Suggests that multi‑currency stablecoin rails will increasingly complement dollar stablecoins in cross‑border and intra‑EU flows.
- Shows how clear rules and infrastructure like StableFX and card‑network support can turn regulated stablecoins into practical settlement tools.
- Underscores that, while still niche versus dollar tokens, euro stablecoins are becoming strategically important for European financial institutions.
FTI Consulting released a detailed analysis on March 26 examining how financial institutions must navigate the structural divide between stablecoins and tokenized deposits as both technologies mature. The report draws a clear distinction: tokenized deposits remain on bank balance sheets and operate on permissioned distributed ledger networks with existing regulatory protections, while stablecoins operate on open public blockchains and are governed by emerging frameworks such as the U.S. GENIUS Act. FTI warns that stablecoins issued by large technology platforms represent a genuine disintermediation risk, potentially bypassing banks entirely for consumer and corporate payment flows. The firm outlines a hybrid architecture future, public blockchains for global access, permissioned chains for institutional settlement, and argues that banks which modernize early can leverage their regulatory credibility and balance sheets to become trusted intermediaries in next-generation payment infrastructure rather than being displaced by it.
Key Takeaways:
- Tokenized deposits are legally structured as bank deposits, remaining on balance sheets and subject to full deposit insurance and supervisory oversight under existing frameworks
- Stablecoins operate on open public blockchains with pseudonymized identities, accessible by anyone with a compatible wallet and regulated under evolving frameworks including the GENIUS Act
- Large technology platform stablecoin issuers pose a direct disintermediation risk to banks by enabling consumers and corporates to hold and transact outside the deposit relationship
- Use cases for tokenized deposits include interbank settlement, trade finance with smart-contract-driven compliance, corporate treasury automation, and payroll disbursement
- A hybrid payment architecture combining public blockchains for global reach with permissioned chains for institutional settlement is identified as the most likely near-term structural outcome
Why It Matters:
- The FTI analysis reflects a growing consensus that stablecoins and tokenized deposits are complementary rather than competing technologies, signaling a more nuanced institutional approach to digital asset strategy
- Banks that delay modernization risk being structurally excluded from the next generation of payment infrastructure as fintech and crypto-native firms set the architecture
- The integration of programmable payments with existing bank balance sheets demonstrates that DeFi-style functionality is migrating into regulated financial institutions, not replacing them
- Cross-border payments emerge as the clearest near-term commercial battleground, where stablecoins offer real-time global settlement at lower cost than traditional correspondent banking rails
- The report signals that the post-GENIUS Act regulatory environment is accelerating boardroom-level decision-making at major financial institutions about digital asset strategy timelines
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