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Weekly Global Stablecoin & CBDC Update
This Week's Stories
New data from the 11th Worldpay Global Payments Report show that physical and virtual cards remain the dominant payment method in the United States, even as digital wallets rapidly gain share. In 2025, credit cards accounted for 49 percent of US online spending and 71 percent of in store spending, while debit cards made up a smaller share; globally, direct card spending represented 31 percent of online and 48 percent of in store transaction value. The report finds that Americans spent twice as much online using credit cards as with debit cards, and in store credit card spending exceeded debit by 43 percent. At the same time, digital wallet use is growing quickly, with US wallet spending forecast to increase about 10 percent annually and reach 4.1 trillion dollars by 2030, a 64 percent rise from 2025 levels. Globally, digital wallets already represent 56 percent of online spending and one third of in store purchases.
Key Takeaways:
- Worldpay data indicate that in 2025, US consumers used credit cards for 49 percent of online spending and 71 percent of in store spending, with cards overall far ahead of mobile based methods.
- Global card usage accounted for roughly 31 percent of online and 48 percent of in store transaction value, highlighting stronger card dependence in the US than in many other markets.
- US online spending via credit cards was about double that via debit cards in 2025, while in store credit card spending exceeded debit by 43 percent.
- Digital wallet spending in the US is projected to grow around 10 percent per year, reaching an estimated 4.1 trillion dollars by 2030, or about 64 percent above 2025 levels.
- Digital wallets are already the most used online payment method for 39 percent of consumers aged 18 to 24 and 41 percent of those aged 25 to 34, but only 9 percent of over 65s.
Why It Matters:
- The figures confirm that card networks still anchor US retail payments, even as newer digital methods expand.
- Strong projected growth in wallet volumes signals an ongoing generational shift toward mobile and embedded payment experiences.
- The divergence between US and Asia Pacific adoption patterns suggests that global payment providers must tailor strategies by region rather than assuming uniform wallet dominance.
- Increasing wallet usage, especially among younger consumers, pushes merchants and issuers to upgrade acceptance infrastructure and tokenization capabilities.
- The coexistence of card centric habits and rising wallets illustrates a gradual migration path for digital payments rather than an abrupt displacement of legacy rails.
New report figures show that consumer and commercial cards issued in the United States by Visa, Mastercard, American Express and Discover processed 11.46 trillion dollars in payments volume last year, a 6.4 percent increase over 2024. The total includes credit, debit and prepaid transactions and outpaced the prior year’s 5.9 percent growth from 2023 to 2024. Credit card volume specifically rose 6.1 percent to 6.51 trillion dollars. Visa remained the largest player, handling about 31 percent of US debit and 30 percent of credit volume, while Mastercard held roughly 14 percent of credit and 12 percent of debit spend. Nilson’s publisher highlighted that card network gains were supported by digital initiatives such as partnerships with aggregators like Stripe and Square, which simplify card acceptance for small merchants. The data suggest that traditional card schemes continue to expand despite competition from fintechs and digital wallets.
Key Takeaways:
- Combined US volume on Visa, Mastercard, American Express and Discover cards reached approximately 11.46 trillion dollars last year, up 6.4 percent from 2024.
- Credit card payments on those networks totaled about 6.51 trillion dollars, representing 6.1 percent growth year on year.
- Visa processed around 31 percent of US debit and 30 percent of credit card transaction value, maintaining the largest network share.
- Mastercard’s share stood near 14 percent of credit and 12 percent of debit volume on US issued cards, according to the Nilson Report.
- Nilson’s analysis attributes part of the volume growth to digital plays, including expanded online acceptance and partnerships with processors that onboard small merchants.
Why It Matters:
- The results indicate that incumbent card networks continue to post solid volume growth even as alternative payment methods proliferate.
- Rising card spend underscores sustained consumer reliance on credit and debit for e-commerce and point of sale transactions.
- Digital onboarding via processors like Stripe and Square shows how legacy networks are using fintech partnerships to deepen acceptance among small businesses.
- Strong card volumes suggest that new digital payment rails will coexist with, rather than immediately displace, traditional network infrastructure.
- The figures provide context for banks and fintechs assessing how far and how fast transaction flows might migrate to stablecoins, wallets, or account to account systems.
A new market report projects that the global digital wallet market will exceed 145 billion dollars in annual revenue by 2030, growing at an expected compound annual rate of about 20 percent from 2025 levels. The study estimates that digital wallets will represent roughly 68 percent of the broader 214 billion dollar digital payments market by 2030, and about 0.3 percent of the 51.1 trillion dollar global financial services industry. Asia Pacific is forecast to be the largest regional market at 54 billion dollars, expanding from 19 billion dollars in 2025 at a 23 percent CAGR, driven by mobile first banking, QR and NFC payments, and pro digital policies. The United States is projected to reach 43 billion dollars, up from 17 billion dollars in 2025, supported by contactless adoption, peer to peer apps and strong payment infrastructure. Proximity wallets used at physical points of sale are expected to account for about 62 percent of market value, or roughly 89 billion dollars, by 2030.
Key Takeaways:
- The Business Research Company forecasts the digital wallet market will surpass roughly 145 billion dollars in annual revenue by 2030, implying about 20 percent compound annual growth from 2025.
- Digital wallets are projected to make up approximately 68 percent of a 214 billion dollar digital payments market and around 0.3 percent of a 51.1 trillion dollar global financial services sector by 2030.
- Asia Pacific’s digital wallet market is expected to reach about 54 billion dollars in 2030, growing from 19 billion dollars in 2025 at a 23 percent CAGR.
- The US digital wallet market is projected at roughly 43 billion dollars by 2030, up from 17 billion dollars in 2025, supported by mobile and contactless payments.
- Proximity wallets used for in person payments are forecast to represent about 62 percent of digital wallet revenue in 2030, or around 89 billion dollars.
Why It Matters:
- The projections reinforce digital wallets as a core channel within the broader digital payments ecosystem rather than a niche add on.
- High growth rates, particularly in Asia Pacific, signal accelerating consumer and merchant adoption of mobile centric payment experiences.
- The relatively small share of total financial services revenue suggests significant headroom remains for wallets to capture additional value.
- The dominance of proximity wallets highlights how digital payments increasingly blur the line between online and in store commerce.
- Expected expansion supports continued investment in wallet related infrastructure, including tokenization, biometrics and integration with banking and merchant systems.
A Los Angeles Times feature details how PayPal, an early pioneer in online payments, is now grappling with slowing growth and rising competition from technology giants and alternative payment providers. The company’s branded online checkout business, historically its most profitable segment, grew just 1 percent in the fourth quarter, and PayPal reported adjusted earnings of 1.23 dollars per share on 8.68 billion dollars in revenue, missing analyst expectations. Shares have fallen more than 20 percent since January and are down over 80 percent over the past five years. PayPal recently replaced its chief executive and installed Enrique Lores as president and CEO, committing 400 million dollars this year to improve and expand branded checkout. The article notes that PayPal, which has about 23,800 employees and 439 million active accounts across roughly 200 markets, faces user growth in the US of less than 1 percent, while Apple Pay and Google Pay are expected to grow to about 90.5 million and 55 million US users respectively in 2026.
Key Takeaways:
- PayPal’s branded online checkout growth slowed to about 1 percent in the fourth quarter, contributing to adjusted earnings of 1.23 dollars per share on 8.68 billion dollars in revenue that fell short of Wall Street expectations.
- PayPal’s stock price has declined more than 20 percent since January 2026 and is down over 80 percent compared with five years ago.
- The company has approximately 23,800 employees and 439 million active consumer and merchant accounts across around 200 markets worldwide.
- New chief executive Enrique Lores plans to invest about 400 million dollars in 2026 to strengthen PayPal’s branded checkout offering.
- eMarketer forecasts suggest PayPal’s core US user base will grow by fewer than 1 percent year over year to 92.1 million in 2026, while Apple Pay and Google Pay users are expected to reach about 90.5 million and 55 million respectively.
Why It Matters:
- PayPal’s challenges highlight how early leaders in digital payments can struggle as the market matures and competitive dynamics shift.
- Slowing user and checkout growth indicate that newer wallet offerings integrated into mobile operating systems may be capturing incremental transaction share.
- The company’s strategic response, including leadership change and major reinvestment in checkout, illustrates how incumbents are adapting to maintain relevance in a crowded digital wallet landscape.
- Competitive pressure from Apple, Google and buy now pay later providers underscores the tight linkage between big tech ecosystems and digital payment adoption.
- PayPal’s performance is a bellwether for investor confidence in standalone digital wallet and payment service providers amid rising embedded finance models.
Pakistan’s government has begun disbursing targeted fuel relief to public transport operators and goods vehicle drivers via digital wallets as part of measures to offset recent petrol price volatility. Prime Minister Shehbaz Sharif said subsidies are now being transferred digitally to buses, wagons, trucks and other goods carrying vehicles under an “effective and transparent” system. The program follows a petrol price increase of 137 rupees per litre to 458.4 rupees, alongside an 80 rupee reduction in the petroleum levy that lowered the consumer price to 378 rupees per litre. Relief measures include a 100 rupee per litre subsidy for motorcycle users and lump sum monthly assistance of 70,000 rupees for small trucks, 80,000 rupees for large trucks and 100,000 rupees for public transport buses, delivered through digital channels. Support is also being extended to small farmers and rail passengers.
Key Takeaways:
- The government has activated digital wallet based transfers for fuel relief to public transport and goods vehicle operators.
- Petrol prices were increased by 137 rupees per litre to 458.4 rupees, then offset by an 80 rupee levy cut to bring prices to 378 rupees.
- Motorcycle users receive a 100 rupee per litre subsidy, while truck and bus operators get monthly payments of 70,000 to 100,000 rupees.
- Digital disbursement is being used to deliver targeted subsidies and reduce leakages in relief programs.
- Additional assistance includes 1,500 rupees per acre for small farmers and protection of economy class rail fares.
Why It Matters:
- The shift to digital wallet based subsidies demonstrates how governments can use digital payments infrastructure for rapid, targeted relief.
- The program highlights growing reliance on electronic transfers as fuel price shocks pressure household and transport sector budgets.
- Using digital rails for subsidies reflects how traditional fiscal policy is increasingly implemented through modern payment systems.
- Linking support for transport operators and farmers to digital channels strengthens the connection between public programs and formal financial services.
- The initiative could serve as a template for broader social support and subsidy schemes delivered over digital payment networks in emerging markets.
A researcher at the Cato Institute has filed a Freedom of Information Act lawsuit against the U.S. Department of Justice (DOJ), alleging unlawful secrecy around the department’s legislative analysis on how to create a U.S. central bank digital currency following President Biden’s 2022 executive order on CBDC research. After submitting a FOIA request in November 2022, the researcher was initially told processing could take roughly 500 days, with subsequent updates in 2024 indicating that relevant documents had been located but still required review for sensitive information. In April 2025 the DOJ denied the request, citing deliberative process and attorney‑client privilege, and an administrative appeal was rejected in September 2025. The new lawsuit, filed with support from Cato’s FOIA litigation team, seeks court-ordered disclosure of the DOJ’s analysis and any proposed legislative language for a potential U.S. CBDC.
Key Takeaways:
- Cato researcher requested DOJ’s CBDC legislative analysis in November 2022 after a White House executive order on digital currency policy.
- DOJ projected roughly 500 days to process the FOIA request and later confirmed it had located responsive documents.
- In April 2025 DOJ denied access, invoking deliberative process and attorney‑client privilege, and upheld that denial on appeal in September 2025.
- New FOIA lawsuit aims to compel release of DOJ’s views on whether legislative changes are needed to authorize a U.S. CBDC and any draft statutory language.
- Case unfolds amid heightened political attention to CBDCs, with President Donald Trump publicly opposing a U.S. central bank digital currency.
Why It Matters:
- The lawsuit underscores growing public pressure for transparency around how U.S. agencies are evaluating the legal basis and design of CBDCs.
- Disclosure of DOJ’s analysis could clarify how far existing law already allows a digital dollar and what new powers Congress would need to grant.
- Market participants and civil liberties groups are watching CBDC policy closely because design choices could affect privacy, surveillance risk and banking intermediation.
- Understanding DOJ’s internal views would help Congress assess whether proposed CBDC bans or guardrail bills accurately reflect executive-branch thinking.
- The outcome could set a precedent for how much legislative and regulatory groundwork on digital currencies must be shared with the public.
Sri Lanka has launched a nationwide “National QR Payment Promotion Programme” that removes merchant fees on LankaQR transactions up to 5,000 Sri Lankan rupees, or about 15.87 U.S. dollars, in an effort to accelerate adoption of digital payments among small businesses. Financial institutions have eliminated the Merchant Discount Rate on these low-value QR transactions with immediate effect, allowing roughly 450,000 participating merchant locations to accept QR payments at no cost. The initiative responds to a still cash‑heavy economy where currency in circulation totals 1.48 trillion rupees, while LankaQR volumes remain modest at about 395 million rupees per month as of the third quarter of 2025. Authorities note that other payment rails already process significant traffic, with the Common Electronic Fund Transfer Switch handling around 68 million transactions per quarter worth 6.3 trillion rupees, underscoring the scope for QR usage to grow.
Key Takeaways:
- National QR Payment Promotion Programme introduces zero merchant fees on LankaQR payments up to 5,000 rupees per transaction.
- Currency in circulation in Sri Lanka stands at about 1.48 trillion rupees, highlighting ongoing reliance on physical cash.
- LankaQR usage averages roughly 395 million rupees per month, well below volumes on other electronic channels.
- Common Electronic Fund Transfer Switch processes around 68 million transactions per quarter, totaling 6.3 trillion rupees in value.
- LankaQR is supported by more than 20 financial institutions and accepted at approximately 450,000 merchant locations nationwide.
Why It Matters:
- Removing merchant fees on small QR transactions lowers a key barrier to digital payments adoption for micro and small retailers.
- The step validates QR-based schemes as a low-cost way to bring more day-to-day commerce onto electronic rails in emerging markets.
- Strong existing volumes on other electronic payment switches suggest infrastructure is in place to support a rapid shift away from cash if incentives align.
- Linking zero-fee QR acceptance to the national LankaQR standard deepens integration between bank rails and front-end digital wallets.
- Over time, higher QR usage could improve transaction data availability, credit scoring and access to formal financial services for smaller merchants.
In an interview with TheStreet, Solana Policy Institute president Kristin Smith argued that the Washington battle over stablecoin rewards is increasingly about competition between banks and digital-asset platforms rather than narrow compliance questions. She noted that the GENIUS Act established a federal framework for payment of stablecoins, while the separate CLARITY bill is meant to govern trading and issuance, leaving unresolved whether issuers and affiliates can offer yield on stablecoin holdings. According to Smith, some banks now claim the law left a loophole that allows rewards which could accelerate deposit outflows, since stablecoin yields can be more than two or three times typical bank savings rates. She added that stablecoin activity on Solana alone moved more than 11 trillion dollars in 2025, underscoring how deeply these instruments are embedded in digital finance even as regulatory parameters remain contested.
Key Takeaways:
- The GENIUS Act provides the core federal framework for payment stablecoins, while the CLARITY bill targets broader crypto market structure.
- Bank lobbyists argue a perceived loophole in GENIUS allows stablecoin issuers or affiliates to pay rewards that undercut deposit funding.
- Stablecoin yields cited in the interview often exceed traditional deposit rates by more than two or three times, raising concerns about deposit flight.
- Stablecoin transfers on the Solana network reportedly exceeded 11 trillion dollars in 2025, highlighting significant on-chain payment volumes.
- Kristin Smith frames the policy clash as a competition issue, suggesting banks are unaccustomed to facing agile, technology-driven challengers.
Why It Matters:
- The debate illustrates how stablecoins are shifting from niche crypto instruments to direct competitors for bank deposits and payment flows.
- Rising on-chain dollar volumes signal a structural change in how value moves, with stablecoins increasingly used as transactional money rather than just trading collateral.
- How lawmakers resolve questions around rewards will shape whether stablecoins function mainly as payments tools or as yield-bearing cash substitutes.
- Bank resistance to stablecoin incentives reflects broader tension over how far digital assets can plug into legacy financial infrastructure without eroding incumbents’ business models.
- Regulatory outcomes in this arena will influence the pace and direction of dollar-token adoption across public blockchains such as Solana.
The Federal Deposit Insurance Corporation’s Board of Directors has approved a notice of proposed rulemaking to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act for FDIC‑supervised permitted payment stablecoin issuers and insured depository institutions engaged in payment stablecoin activities. The proposal would require permitted issuers to maintain identifiable reserve assets, meet tailored capital and risk management standards, and redeem payment stablecoins within two business days, while defining both authorized and prohibited activities. It clarifies that deposits held as reserves backing a payment stablecoin would not be insured to stablecoin holders on a pass‑through basis and sets custodial and safekeeping requirements for both issuers and banks. The rule also addresses tokenized deposits and opens a 60‑day comment period after Federal Register publication, positioning this as a central pillar of the emerging U.S. stablecoin regulatory regime.
Key Takeaways:
- FDIC Board approval of a proposed GENIUS Act rule for payment stablecoin issuers and related bank activities.
- Proposed requirement for identifiable reserve assets plus capital and risk standards tailored to issuer size and complexity.
- Redemption standard generally obliging issuers to redeem payment stablecoins within two business days.
- Clarification that reserves backing stablecoins are not pass‑through insured to individual stablecoin holders.
- Sixty‑day public comment window following Federal Register publication of the proposal.
Why It Matters:
- U.S. federal oversight of payment stablecoins moves from concept to detailed prudential standards for bank‑linked issuers.
- Stablecoin design and reserve practices are being hard‑wired into supervisory rules rather than left to issuer discretion.
- Traditional banks receive clearer guardrails on engaging in stablecoin and tokenized deposit activities without jeopardizing insurance coverage.
- Deposit insurance treatment for stablecoin reserves is being explicitly aligned with existing bank liability frameworks and technology‑neutral principles.
- The GENIUS Act rulemaking advances a comprehensive federal framework that could shape which dollar‑linked stablecoins remain viable at scale.
The Bank of Korea and Banque de France held a two‑day joint session in Seoul focused on stablecoins, central bank digital currencies and the evolving role of banks in a tokenized financial system, as part of an academic exchange launched in 2024. Discussions examined how stablecoins and CBDCs could reshape the international monetary system and alter responsibilities between central and commercial banks. Banque de France highlighted its wholesale CBDC pilots for cross‑border payments and tokenized securities settlement, which are feeding into the European Central Bank’s digital euro work. The Bank of Korea outlined progress under “Project Han River,” launched in 2023, noting that real‑transaction testing entered a second phase last month. Participants also assessed how climate change is influencing inflation dynamics and macroeconomic risks, linking digital currency innovation to broader financial stability questions.
Key Takeaways:
- Bank of Korea and Banque de France joint session centered on stablecoins, CBDCs and bank roles in a tokenized system.
- Banque de France wholesale CBDC pilots targeting cross‑border payments and tokenized securities settlement.
- Bank of Korea’s “Project Han River” is now in a second phase of real‑transaction CBDC testing.
- Policy discussions explicitly connecting digital currencies with international monetary system design and bank intermediation.
- Agenda also covers climate‑driven inflation pressures and macro challenges for financial institutions.
Why It Matters:
- Major central banks are moving from research to coordinated experimentation on wholesale and retail CBDC architectures.
- Ongoing pilots signal an acceleration toward live use cases where CBDCs support cross‑border settlement and tokenized assets.
- Traditional banking roles are being re-evaluated as central banks test direct settlement assets in tokenized environments.
- Insights from these pilots can inform how CBDCs and stablecoins plug into existing payment and securities infrastructures.
- Deeper Korea‑France coordination hints at broader international alignment on standards for CBDC deployment and risk management.
Mastercard announced completion of its first authenticated “agentic” payment transaction in Thailand, conducted with Krungthai Card (KTC) using Mastercard Agent Pay in a controlled pilot environment. In the test case, an AI agent booked a ride from Bangkok’s Suvarnabhumi airport to Central Chidlom via mobility provider Elife, using tokenized card credentials authenticated with Mastercard Payment Passkeys for strong customer verification. The pilot demonstrates how consumer‑authorized AI agents can execute end‑to‑end digital payments, embedding tokenization, consent capture and passkey‑based confirmation. KTC, which serves nearly 3.7 million accounts and processes over 302 billion baht in annual credit card spending, is Mastercard’s first partner in Thailand for such AI‑driven transactions. Mastercard plans to expand agentic commerce use cases across travel, entertainment and retail, supported by a regional AI Center of Excellence in Singapore and dedicated teams across Asia Pacific.
Key Takeaways:
- Mastercard and Krungthai Card pilot of the first authenticated AI‑initiated “agentic” transaction in Thailand using Agent Pay.
- Initial use case involving an AI agent booking and paying for an airport ride through Elife with tokenized credentials and Payment Passkeys.
- Krungthai Card has a customer base of nearly 3.7 million accounts and more than 302 billion baht in annual card spending.
- Mastercard plans to scale agentic commerce to additional sectors including travel, entertainment and retail across Asia Pacific.
- Establishment of a regional AI Center of Excellence in Singapore to support trusted AI‑powered payment innovation.
Why It Matters:
- AI‑driven, agent‑initiated payments are moving from concept to real pilots within mainstream card networks.
- Tokenization and passkey authentication are being combined to manage security and consent in fully digital, AI‑mediated transactions.
- Large incumbent issuers like KTC are beginning to operationalize AI agents within existing card and digital payment ecosystems.
- Cross‑border travel and mobility services are early testbeds for friction‑reduced, automated digital payment flows.
- Regional AI and agentic commerce investments indicate how card networks aim to anchor their roles in an increasingly automated payments landscape.
The Moscow Times reported that Russia is promoting A7, a cross border payments network built around A7A5, a ruble backed stablecoin recognized domestically as a “digital financial asset,” as a way to settle trade with African partners outside Western financial channels. A7 is partly controlled by fugitive Moldovan banker Ilan Șor and state linked Promsvyazbank, which hold 51 percent and 49 percent stakes respectively, and claims in promotional material to handle up to 19 percent of Russia’s foreign trade payments, though the FT could not verify this figure. The company says it has opened an office in Nigeria, plans a branch in Zimbabwe, and is recruiting staff in Togo, yet researchers and local crypto professionals interviewed report almost no visible on the ground activity so far. Analysts see the project as part of Moscow’s broader strategy to deepen African ties and bypass sanctions.
Key Takeaways:
- A7 is a Russian crypto payments network using A7A5, a ruble backed stablecoin with official digital financial asset status.
- Ownership is split between Ilan Șor’s interests and Promsvyazbank, 51 percent and 49 percent respectively.
- A7 claims to process up to 19 percent of Russia’s foreign trade payments, a figure not independently verified.
- The firm touts expansion to Nigeria, Zimbabwe and Togo, but researchers find little online or local evidence of activity.
- Russia frames the network as an “international financial platform” for Africa to reduce reliance on Western systems.
Why It Matters:
- Illustrates how state backed stablecoins and tokenized assets are being used to seek sanctions resistant payment channels.
- Highlights the geopolitical dimension of stablecoin networks as tools of economic and foreign policy influence.
- Shows that official recognition as a digital financial asset can blur lines between domestic regulation and cross border use.
- Raises questions about transparency and actual adoption when stablecoin projects are driven by political rather than market logic.
- Offers an early case study for African regulators evaluating foreign state linked stablecoin payment schemes in their markets.
Circle Internet Group announced on April 7, 2026 that it minted 1 billion dollars of its USDC stablecoin in a single 24-hour period, contributing to a 4.5 billion dollar year-to-date increase in USDC supply. The minting reflects sustained demand for the regulated stablecoin as U.S. frameworks such as the GENIUS Act and related proposals provide greater clarity for institutional adoption. USDC’s total market capitalization stands at approximately 78 billion dollars, with the broader stablecoin market reaching 315 billion dollars in Q1 2026. This development follows Circle’s ongoing integration of USDC into traditional payment rails and occurs against a backdrop of regulatory milestones that have positioned fully reserved, redeemable stablecoins as compliant payment instruments under federal law.
Key Takeaways:
- Circle: minted 1 billion dollars of USDC in 24-hour period announced April 7 2026
- USDC supply growth: 4.5 billion dollars year-to-date increase
- USDC market cap: approximately 78 billion dollars
- Stablecoin market: reached 315 billion dollars in Q1 2026
- Regulatory context: aligns with GENIUS Act implementation progress
Why It Matters:
- This validates growing institutional confidence in regulated stablecoins following federal legislative and rulemaking advancements
- The rapid minting signals accelerating demand trajectory for programmable dollar-based digital assets in payments and liquidity
- Traditional financial markets are responding by channeling capital into compliant stablecoin infrastructure
- It demonstrates direct linkage of on-chain stablecoin supply to legacy financial demand drivers and settlement needs
- Long-term strategic implication is expanded role of stablecoins in mainstream treasury management and cross-border commerce
Six of Switzerland’s largest banks have joined forces with Swiss Stablecoin AG to launch a live sandbox environment to test potential use cases for a regulated Swiss franc-pegged stablecoin, with UBS making the announcement on April 8. The consortium includes UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank (ZKB), and Banque Cantonale Vaudoise (BCV), institutions that collectively oversee approximately $6.1 trillion in assets. The sandbox operates under defined safeguards, including transaction limits and a permissioned participant pool, and will run throughout 2026. Swiss Stablecoin AG is providing the technical infrastructure for issuing the stablecoin within the environment. UBS noted there is currently no regulated Swiss franc stablecoin with broad application in Switzerland, and the initiative is explicitly open to additional banks, companies, and institutions seeking to participate in developing Switzerland’s digital money ecosystem.
Key Takeaways:
- Six Swiss banks, collectively overseeing approximately $6.1 trillion in assets, have launched a live CHF stablecoin sandbox with Swiss Stablecoin AG as technical infrastructure provider.
- Participating institutions are UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, and BCV, with the consortium explicitly open to additional members.
- Switzerland currently has no regulated Swiss franc stablecoin with broad domestic application, a gap this initiative is designed to address.
- The sandbox runs throughout 2026 and operates with defined risk controls including transaction limits and a restricted participant pool.
- The project’s stated goal is to connect blockchain applications with the Swiss franc and strengthen the competitiveness of Switzerland’s financial center in digital asset markets.
Why It Matters:
- The coalition of six mainstream banks signals a shift from retail crypto experimentation to institutionally governed, bank-led stablecoin infrastructure development in a major G10 currency.
- A regulated CHF stablecoin would position Switzerland as a first mover in non-USD stablecoin infrastructure, offering an alternative settlement rail to the dominant USDT and USDC ecosystem.
- The sandbox model, with defined safeguards and a permissioned participant pool, provides a blueprint for how traditional financial institutions can test digital money products within existing regulatory risk frameworks.
- Participation by Sygnum, a regulated crypto-native bank, alongside mainstream retail and cantonal banks, illustrates how the boundary between traditional and digital finance is converging at the institutional level.
- Results from this trial will directly inform whether Switzerland proceeds to a production-ready CHF stablecoin, with downstream implications for how European non-euro currencies integrate into the tokenized asset ecosystem.
The US Department of the Treasury’s Financial Crimes Enforcement Network and Office of Foreign Assets Control issued a joint proposed rule to implement the GENIUS Act’s anti money laundering and sanctions provisions for permitted payment stablecoin issuers. The 303 page proposal would treat payment stablecoin issuers as financial institutions under the Bank Secrecy Act, requiring them to file suspicious activity reports, retain specified records, and conduct customer due diligence. Issuers must establish AML and CFT programs with internal controls, independent testing, a US based AML officer, and ongoing employee training, alongside an effective sanctions compliance framework. The rule also proposes coordinated supervision between FinCEN and primary federal stablecoin regulators, with major enforcement actions reserved for significant or systemic program failures and a 60 day public comment period after Federal Register publication.
Key Takeaways:
- FinCEN and OFAC jointly proposed a rule to implement GENIUS Act AML and sanctions obligations for payment stablecoin issuers.
- Stablecoin issuers would be treated as Bank Secrecy Act financial institutions and required to file suspicious activity reports, keep records, and perform due diligence.
- AML and CFT programs must include internal policies and risk assessments, independent testing, a US based AML officer, and ongoing staff training.
- The proposal spans 303 pages and limits major enforcement actions to cases of significant or systemic failure to maintain required programs.
- Public comments on the proposal are due 60 days after its publication in the Federal Register.
Why It Matters:
- The rule clarifies anti money laundering and sanctions expectations for issuers of dollar backed payment stablecoins within the US regulatory perimeter.
- Designating stablecoin issuers as financial institutions for Bank Secrecy Act purposes signals closer integration of stablecoins with traditional compliance frameworks.
- Tailored AML and CFT requirements and coordinated supervision aim to address illicit finance risks without indiscriminately applying full bank regulations.
- Implementing core provisions of the GENIUS Act advances the broader federal framework for regulating payment stablecoins.
- Clear AML standards may make it easier for institutional users to adopt regulated stablecoins for payments and settlement once issuers meet compliance expectations.
A new analysis by the White House Council of Economic Advisers evaluates how the GENIUS Act’s prohibition on interest or yield for payment stablecoins affects US bank lending. The Act requires 1 to 1 reserve backing in specified high quality assets and bans issuers from paying yield, amid concerns that competitive returns could pull deposits from banks into stablecoins. The Treasury previously estimated that up to 6.6 trillion dollars of deposits might be at risk under generous yield scenarios. Using its own model, CEA finds that eliminating stablecoin yield increases aggregate bank lending by only 2.1 billion dollars, or 0.02 percent, while imposing a net welfare cost of 800 million dollars. Even under worst case assumptions, additional lending tops out at 531 billion dollars, a 4.4 percent increase, leading the report to conclude that the yield ban does very little to protect lending relative to its costs.
Key Takeaways:
- GENIUS Act rules require payment stablecoins to maintain fully backed reserves and prohibit issuers from offering any interest or yield on tokens.
- The Treasury has estimated that as much as 6.6 trillion dollars in bank deposits could theoretically shift if stablecoins paid competitive returns.
- CEA modeling shows eliminating stablecoin yield raises aggregate bank lending by 2.1 billion dollars, equal to a 0.02 percent increase, with a net welfare cost of 800 million dollars.
- Large banks capture 76 percent of this additional lending, while community banks gain roughly 500 million dollars, a 0.026 percent lending increase.
- Under stacked worst case assumptions, lending rises by 531 billion dollars, or 4.4 percent, still requiring implausible growth and policy shifts to materialize.
Why It Matters:
- The findings challenge claims that allowing stablecoin yield would severely undermine banks’ ability to extend credit.
- Quantitative results suggest that deposit flight fears underpinning strict yield prohibitions may be overstated.
- The report provides lawmakers with concrete estimates as they weigh CLARITY Act provisions that could close loopholes for third party stablecoin rewards.whitehouse+1
- Evidence based analysis helps regulators calibrate stablecoin rules to address genuine systemic risks rather than hypothetical scenarios.
- Policy choices on stablecoin yields will shape how savings products evolve across tokenized assets and traditional bank accounts over the coming decade.
Chainalysis released a preview of its report “The New Rails: How Digital Assets Are Reshaping the Foundations of Finance,” focusing on the trajectory of stablecoins as payment infrastructure. Adjusted stablecoin volume, which filters out non economic activity, has grown at a 133 percent compound annual rate since 2023 and reached 28 trillion dollars of real economic volume in 2025. Under a baseline continuation of this trend, the firm projects adjusted volumes of 719 trillion dollars by 2035, and as much as 1.5 quadrillion dollars when factoring in macro catalysts. These catalysts include an estimated 80 to 100 trillion dollar wealth transfer to more crypto native generations and widespread point of sale acceptance that could add 508 trillion and 232 trillion dollars respectively to annual stablecoin volumes by 2035. Chainalysis expects on chain stablecoin transactions to match Visa and Mastercard’s off chain payment counts sometime between 2031 and 2039.
Key Takeaways:
- Adjusted stablecoin volume has expanded at a 133 percent annual rate since 2023, reaching 28 trillion dollars in real economic activity in 2025.
- Baseline projections put adjusted stablecoin volumes at 719 trillion dollars in 2035, with upside scenarios approaching 1.5 quadrillion dollars.
- A projected 80 to 100 trillion dollar wealth transfer from Boomers to Millennials and Gen Z is estimated to add about 508 trillion dollars to annual stablecoin volumes by 2035.
- Point of sale saturation is expected to contribute roughly 232 trillion dollars in additional yearly volume as merchant acceptance becomes standard.
- Stablecoin transaction counts are forecast to intersect with Visa and Mastercard off chain transactions between 2031 and 2039.
Why It Matters:
- The projections reinforce that stablecoins are transitioning from niche trading tools into high volume payment rails.
- Expected volumes on par with or exceeding current cross border payment flows highlight the potential for stablecoins to reshape settlement infrastructure.
- Demographic trends point to growing demand for on chain financial services among younger, more crypto familiar users.
- Anticipated parity with card networks suggests traditional processors will need to integrate stablecoin support or face direct competitive pressure.
- Institutional strategies around acquisitions, partnerships, and on chain product development are likely to be influenced by these long horizon volume expectations.
N3XT, a blockchain powered narrow bank focused on programmable B2B payments, and Zodia Markets, an institutional digital asset trading platform, announced a partnership to provide real time US dollar settlement across Zodia’s client base. The service allows hedge funds, trading firms, and asset managers to transfer dollar denominated stablecoins such as USDC and USDT and settle them into US dollars through N3XT, enabling instant USD transfers for verified clients around the clock. By combining regulated banking infrastructure with Zodia Markets’ trading environment, the collaboration aims to bridge the gap between digital asset transactions and fiat settlement, reducing counterparty exposure and improving liquidity management. The offering is already live for all Zodia Markets clients, initially accessible via a secure portal, with application programming interface connectivity planned later in 2026 to support automated workflows.
Key Takeaways:
- N3XT and Zodia Markets launched a joint service delivering real time US dollar settlement for institutional clients transacting in stablecoins.
- Clients can move dollar denominated stablecoins, including USDC and USDT, and convert them into US dollars via N3XT with instant transfers available 24 hours a day.
- The partnership targets hedge funds, trading firms, and asset managers that require continuous access to liquidity across digital asset and fiat markets.
- Integrating regulated banking infrastructure with an institutional trading platform is designed to reduce counterparty risk and enhance liquidity management.
- The service is currently available via a secure portal, with API based connectivity scheduled for later in 2026 to enable deeper integration.
Why It Matters:
- The arrangement illustrates how stablecoins are being embedded into institutional payment and settlement workflows, not just trading venues.
- Providing 24 7 fiat settlement capacity addresses a key friction where traditional bank hours lag always on digital asset markets.
- Narrow bank structures like N3XT’s offer one model for linking token based liquidity with insured US dollar accounts in a regulated framework.
- Seamless conversion between stablecoins and dollars strengthens the bridge between digital asset ecosystems and legacy banking rails.
- Enhanced settlement speed and reduced counterparty exposure could encourage more institutional participation in tokenized markets.
Mastercard and Payments and Commerce Market Intelligence released a regional study on digital payment acceptance across Mexico, Central America, and the Caribbean, highlighting a large gap among small and micro merchants. The report estimates nearly 11 million businesses in the subregion could benefit from digital payment acceptance, yet about 77 percent currently do not accept digital payments and only 23 percent accept cards. Cash still accounts for roughly 58 percent of personal consumption payment volume across the region and about 72 percent in Jamaica, even as contactless usage reaches 83 percent in Central America, 73 percent in the Caribbean, and 34 percent in Mexico. The study projects that digital payments revenue in Latin America could triple by 2027, driven by ecommerce growth, service digitization, and new technologies, with payment facilitators providing close to 80 percent of new acceptance points.
Key Takeaways:
- Mastercard and PCMI identify nearly 11 million small and micro merchants in Mexico, Central America, and the Caribbean that could benefit from digital payment acceptance.
- Approximately 77 percent of merchants in the subregion still do not accept digital payments, while only about 23 percent accept cards.
- Cash represents around 58 percent of personal consumption payment volume across the region and about 72 percent in Jamaica.
- Contactless payment use is estimated at 83 percent in Central America, 73 percent in the Caribbean, and 34 percent in Mexico.
- The report forecasts that digital payments revenues in Latin America could triple by 2027, with payment facilitators accounting for nearly 80 percent of new acceptance points.
Why It Matters:
- The data underscore a significant acceptance gap that limits how fully consumers and merchants in the region can participate in the digital economy.
- High cash usage alongside growing consumer readiness for contactless payments suggests substantial room for digital payment adoption.
- Expansion of digital acceptance infrastructure can help small businesses access more customers, faster settlement, and improved security relative to cash.
- The prominent role of payment facilitators shows how new intermediaries are reshaping merchant onboarding and driving digital payments growth.
- Projected revenue growth and technology investment signal continued convergence between regional economies and global digital payments infrastructure by 2030.
US Treasury Secretary Scott Bessent again urged Congress to pass the Digital Asset Market CLARITY Act, arguing that delays risk ceding leadership in a global digital asset market whose capitalization has fluctuated between roughly 2 trillion and 3 trillion dollars over the past year. In an opinion push amplified on April 9, Bessent said Senate approval in April and a presidential signature before mid year are needed to avoid election related delays and to complement the GENIUS Act’s stablecoin framework. The CLARITY Act would delineate SEC and CFTC jurisdiction, define when tokens are securities, and establish registration and custody rules for trading platforms while strengthening anti money laundering controls. Coinpedia reports internal estimates that the bill has about a 70 percent chance of clearing the Senate in the first half of 2026 and could unlock “trillions” in institutional capital sidelined by regulatory uncertainty
Key Takeaways:
- US Treasury Secretary Scott Bessent calls for rapid passage of the CLARITY Act to preserve US leadership in digital asset markets.
- Treasury highlights that global digital asset market capitalization has oscillated between roughly 2 trillion and 3 trillion dollars over the past year.
- The CLARITY Act would formally divide oversight of digital assets between the SEC and CFTC and create registration pathways for platforms and intermediaries.
- A Council of Economic Advisers report cited in the debate finds a stablecoin yield ban would raise lending by only 2.1 billion dollars while costing users about 800 million dollars annually.
- Coinpedia reports the bill is viewed as having around a 70 percent probability of passing the Senate in the first half of 2026 and is expected to unlock large scale institutional participation.
Why It Matters:
- The initiative reflects growing consensus that fragmented US oversight is pushing crypto activity toward jurisdictions such as Singapore and Abu Dhabi with clearer rules.
- Passage would signal a shift from enforcement driven regulation toward a statute based framework that clarifies obligations for exchanges, stablecoin issuers, and token projects.
- Defined jurisdictional lines and standardized compliance paths could lower legal risk, enabling banks and asset managers to scale tokenization and digital asset offerings.
- Integration of AML and custody standards would more tightly link digital asset infrastructure to legacy financial controls and risk management.
- A comprehensive market structure law would complement stablecoin specific rules under the GENIUS Act, creating a broader foundation for CBDCs, stablecoins, and tokenized assets to coexist within US financial rails.
A new GR4VY analysis of payment methods by country reports that digital wallets now account for 54 percent of global e-commerce transactions in 2026, up from less than half two years earlier, making them the largest single category worldwide. In the United States, credit cards still represent 31 percent of online purchases, but digital wallets have climbed to 39 percent and are projected to reach 52 percent by 2030, with PayPal showing a 71 percent penetration rate among US adults. The report highlights government backed instant payment systems as major drivers in emerging markets: India’s UPI now accounts for 57 percent of transactions and processes over 13 billion transactions per month, while Brazil’s Pix has 76.4 percent adoption and captured about 40 percent of e-commerce volume, hitting a single day record of 252.1 million transactions in December 2024.
Key Takeaways:
- Digital wallets represent 54 percent of global e-commerce transactions in 2026, making them the dominant online payment method.
- In the United States, credit cards hold 31 percent share of online purchases, while digital wallets account for 39 percent and are forecast to reach 52 percent by 2030.
- PayPal has achieved approximately 71 percent penetration among US adults, remaining the leading US e-commerce wallet.
- India’s UPI rail handles 57 percent of national transactions and processes over 13 billion transactions per month, contributing 55 percent of e-commerce volume in 2024.
- Brazil’s Pix system shows 76.4 percent population adoption, around 40 percent e-commerce share, and a single day record of 252.1 million transactions, with share projected to reach 51 percent by 2027.
Why It Matters:
- The data validate that digital wallets and account to account schemes are becoming the default for online and mobile commerce across both developed and emerging markets.
- Rapid growth of systems like UPI and Pix signals accelerating adoption of real time, low cost digital payment infrastructure at national scale.
- Traditional card networks remain important but are losing relative share to domestic rails, especially in markets such as India, Brazil, the Netherlands, and Kenya.
- Government sponsored and bank linked instant payment schemes increasingly connect domestic digital payment ecosystems to broader financial services, including credit and merchant acquiring.
- The trends suggest that future CBDCs and regulated stablecoins will need to interoperate with dominant wallet and instant payment infrastructures rather than replace them outright.
The onchain value of stablecoins on the Ethereum network reached a new all-time high of $180 billion, per blockchain analytics firm Token Terminal, representing a 150% increase over the past three years and a 60% share of total global stablecoin supply. Token Terminal projects that approximately $1.7 trillion will come onchain across all networks by 2030, with Ethereum alone potentially capturing $850 billion in new flows if it achieves 470% growth in that period. Total stablecoin supply across all networks hit a record $315 billion in the first quarter. Major financial institutions including BlackRock, JPMorgan, and Amundi have each launched tokenized funds on Ethereum. JPMorgan CEO Jamie Dimon simultaneously acknowledged in his annual shareholder letter the emergence of blockchain-based competitors encompassing stablecoins, smart contracts, and tokenization, while JPMorgan’s own tokenized money market fund went live on Ethereum in December.
Key Takeaways:
- Ethereum stablecoin supply reached an all-time high of $180 billion, up 150% over three years, representing a 60% share of total global stablecoin supply.
- Token Terminal projects $1.7 trillion to come onchain across all networks by 2030, with Ethereum capturing $850 billion assuming 470% growth.
- Total stablecoin supply across all blockchain networks hit a record $315 billion in Q1 2026, with USDC rising and USDT declining in share.
- Standard Chartered forecast in late 2025 that more than $1 trillion could exit banks and flow into stablecoins by 2028.
- JPMorgan launched its first tokenized money market fund (MONY) on Ethereum in December, with CEO Jamie Dimon publicly citing blockchain-based competitors in his annual shareholder letter.
Why It Matters:
- The all-time high validates Ethereum’s status as the primary settlement layer for institutional stablecoin and tokenized asset activity, despite ongoing multi-chain competition.
- Rising institutional participation from BlackRock, JPMorgan, and Amundi signals that tokenized real-world assets are moving from pilot phase to production-scale deployment on public blockchains.
- Standard Chartered’s $1 trillion deposit migration forecast, if realized, would represent a structural shift in how bank liabilities and short-term liquidity are held and transferred.
- Growing Ethereum dominance across EVM-compatible layer-2 networks such as Arbitrum, ZKsync Era, and Base, which push combined market share above 65%, illustrates how scaling infrastructure is enabling rather than fragmenting stablecoin liquidity.
- Jamie Dimon’s public acknowledgment of blockchain-based competitors in a formal shareholder letter marks a turning point in how Wall Street leadership frames the long-term competitive threat from decentralized financial infrastructure.
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