The financial sector is becoming "invisible": how stablecoins are becoming the new artery of the digital economy

Author: Cobo

Highlights of this issue:

This week, Coinbase held a system upgrade conference akin to WWDC, focusing on major updates across trading, derivatives, stablecoins, AI, and payment protocols. The envisioned “Everything Exchange” by Coinbase not only reflects its ambition to become a super app but also points to a new pathway for the crypto era—a foundational financial structure centered on stablecoins, asset issuance, and on-chain clearing. Financial capabilities are thus becoming as fundamental as internet bandwidth—serving as core resources that can be natively called by software and AI, and automatically scheduled in the background. Stablecoins have evolved from investment assets into infrastructure supporting the digital economy. In this context, we can say Coinbase’s boundaries have extended beyond traditional internet super apps; finance is beginning to detach from apps and move toward ubiquitous “invisible finance.”

Meanwhile, mainstream adoption of stablecoins continues to accelerate. On one hand, this is reflected in everyday scenarios perceptible to users: ADNOC, the largest fuel retailer in the UAE, supports stablecoin payments at nearly a thousand stations; Interactive Brokers supports stablecoin deposits; enterprise fintech company Ramp enables direct stablecoin payments for paper checks; YouTube allows creators to receive payments in PayPal stablecoin PYUSD. Stablecoins are rapidly entering corporate finance and consumer systems. On the other hand, deeper changes are happening at a nearly imperceptible level: Visa has launched USDC settlement within the US banking system, allowing some banks to settle directly with USDC on VisaNet. This marks a structural overhaul of the settlement layer, occurring deep within the banking system—more covert but also more profound.

Market Overview and Growth Highlights

The total market cap of stablecoins has reached $308.606 billion (about 3086.06 billion USD), a weekly decrease of $1.456 billion (about 14.56 billion USD). Regarding market structure, USDT remains dominant with a 60.32% share; USDC ranks second with a market cap of $77.336 billion (about 773.36 billion USD), accounting for 25.06%.

Blockchain Network Distribution

Top 3 networks by stablecoin market cap:

1. Ethereum: $166.19b (1661.9 billion USD)
2. Tron: $80.993b (809.93 billion USD)
3. Solana: $16.048b (160.48 billion USD)

Top 3 networks with fastest weekly growth:

1. USDD: +20.29%
2. Resolv USD: +16.97%
3. First Digital USD: +16.35%

Data source: DefiLlama

(# From Coinbase’s system upgrade, see how crypto is reconstructing the internet super app

This week, Coinbase hosted a “system upgrade conference” similar to Apple’s WWDC, releasing updates across stock trading, derivatives, prediction markets, Solana DEX integration, enterprise stablecoins, AI investment advisors, and payment protocols. This is Coinbase’s most comprehensive upgrade since its founding, covering the broadest asset classes and most clear structural changes, marking its transition from a single-asset platform to a unified financial gateway.

If early crypto focused on assets themselves, then as stablecoins, tokenized assets, and on-chain clearing mature, the new competitive focus shifts to the organization, settlement, and management of assets. Coinbase’s answer is to integrate stocks, stablecoins, derivatives, and on-chain assets under a single account and wallet identity, summarized as “Everything Exchange.”

On the traditional asset side, US users can trade thousands of stocks and ETFs via Coinbase Capital Markets, settled in USD or USDC, with some stocks supporting 24-hour trading on weekdays. While still using traditional market structures, Coinbase explicitly views this as a transitional form toward tokenized stocks and plans to promote on-chain issuance of real-world assets via Coinbase Tokenize. For non-US users, perpetual stock contracts offer exposure to US stocks without relying on securities transfer, providing compliant, continuous, and capital-efficient cross-border participation by transmitting only price signals. Such structures are forming a new synthetic market, aggregating global liquidity around prices and risks without waiting for underlying assets to be on-chain. Related products are expected to launch next year.

As account capabilities expand, Coinbase is unifying different risk types into a single trading and settlement framework.

Prediction markets: in partnership with Kalshi, users can trade election, sports, and economic event outcomes in USD or USDC, with regulated real-world risk directly integrated into the stablecoin settlement system.

On-chain assets and DEX: Jupiter, the largest DEX aggregator on Solana, has been integrated into the Coinbase app, enabling access to numerous assets on Base and Solana networks within a single interface, reducing cross-chain operational barriers.

Derivatives and AI trading advisors: futures and perpetual contracts are being integrated into the main app, combined with AI-driven investment advice, making cross-asset risk exposure construction more intuitive.

Overall, Coinbase has formed a clear dual-end layout: one for individual users—Base App, combining trading, wallet, payments, and content discovery; and one for enterprises—Coinbase Business, offering stablecoins, corporate accounts, payment APIs, and financial automation services. The common point is stablecoin liquidity.

Among all updates, Custom Stablecoins and the open payment protocol x402 hold longer-term strategic significance.

Custom Stablecoins allow enterprises to issue their own branded digital dollars, collateralized 1:1 by USDC and other regulated USD stablecoins, not by fiat deposits. This design places the collateral layer entirely on-chain, reducing direct reliance on banks, while expanding USDC’s use cases and circulation. For Coinbase and Circle, this is a clear business growth; on a macro level, it promotes USD entry into cross-border payments, on-chain economy, and emerging markets via stablecoins. The x402 protocol further extends this by embedding stablecoin payments into HTTP requests, enabling software and AI agents to automate payments. Within 30 days of launch, its annualized trading volume exceeded $200 million, demonstrating real demand for machine-to-machine payments.

Coinbase’s vision is not a traditional financial super app, but a financial structure for the crypto era: user entry points are just one layer; another is a supply network composed of stablecoins, enterprise issuance, and clearing capabilities. Revolut and Cash App are also evolving toward a unified entry point, but Coinbase’s difference is its attempt to control both demand and asset creation, coupling the two via on-chain clearing.

If traditional fintech aims to embed all financial functions into one app, then crypto-native platforms aim to enable any app to natively use financial services. Under this trend, stablecoins become a fundamental capability, and crypto finance built on top is shifting from app form to a system service directly callable by software and AI agents.

)# Card network Visa supports USDC settlement: a key node for stablecoins entering the banking settlement layer

This week, Visa launched USDC settlement within the US banking system. After a pilot with an annualized volume of about $3.5 billion, Visa now allows some US banks to settle directly with Circle’s USDC on VisaNet.

The first participants include Cross River Bank and Lead Bank, with settlement running on the Solana network. For card users and merchants, this is almost imperceptible: payment processes, billing formats, and merchant collection methods remain unchanged. But between banks, funds now flow differently.

In recent years, mainstream adoption of stablecoins has mostly occurred at the payment interface layer: users pay with stablecoins, merchants receive funds via fintech platforms, but before entering the banking system, these stablecoins are usually exchanged back to fiat and settled through traditional clearing channels. Stablecoins have been more of a front-end tool, always outside the core financial system.

This time, Visa directly incorporates stablecoins into the settlement process itself. Issuing banks no longer need to convert funds back to USD before settlement; they can settle directly with USDC on VisaNet. This means settlement is no longer constrained by business days, batch processing, or holiday windows—funds between banks can flow 24/7.

The significance lies in settlement: in modern payment systems, the party bearing real economic responsibility is the bank. Every card transaction ultimately impacts the balance sheets of two banks. Visa’s network is essentially a settlement coordination system connecting banks. When stablecoins are allowed as settlement assets, their role shifts from a payment method to a banking operational tool.

This change redistributes efficiency: around-the-clock settlement reduces in-transit time, improves liquidity predictability, and compresses redundant positions held for uncertainty. For banks, this directly affects asset-liability management: the same amount of funds can turn over faster and be allocated more precisely.

This is why we say stablecoins may not “destroy banks,” but will change how banks operate. As settlement speeds increase and reliance on time gaps and process inertia diminishes, differences among banks will increasingly show in liquidity management and capital efficiency. Settlement efficiency itself is becoming a product capability.

For Visa, this means moving closer to a multi-asset settlement network. When VisaNet supports both fiat and stablecoin settlement, its network value is no longer just about payment coverage but also about the scalability of settlement methods and continuity over time. Once stablecoin settlement becomes a standard capability, bank follow-up will be a natural result driven by network effects.

( Regulatory Compliance

)# Ripple, Circle, BitGo receive conditional approval for US banking licenses, multiple crypto firms moving toward federal trust banks

Key points

• The OCC conditionally approved Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos for federal trust bank charters, allowing them to hold customer assets but not to accept deposits or lend;
• New entities like Circle’s First National Digital Currency Bank and Ripple’s Ripple National Trust Bank are included; these licenses will provide clear pathways for compliant issuance of stablecoins like RLUSD;
• Coinbase, Bridge (Stripe’s subsidiary), and Crypto.com are still in application; under a relaxed regulatory environment, the industry is accelerating integration with the US traditional banking system.

Why it matters

• Crypto firms entering the federal banking system will deeply integrate stablecoins, custody, and traditional financial regulation, laying a regulatory foundation for institutional capital and stablecoin expansion, potentially reshaping US crypto financial competition.

(# PayPal applies for Utah industrial bank license, plans to establish PayPal Bank to expand lending and savings

Key points

• PayPal has applied for an industrial bank license in Utah and simultaneously applied for FDIC insurance, planning to establish PayPal Bank;
• The new bank will offer loans to small businesses, introduce interest-bearing savings accounts, and connect to credit card networks;
• PayPal is also one of the issuers of PYUSD stablecoin, continuously expanding crypto transfer and “crypto payment” merchant services in recent years.

Why it matters

• This marks a major payment platform entering core traditional finance through a relatively flexible banking structure, providing a more solid compliance and funding base for its stablecoin and crypto payment ecosystem, potentially accelerating the integration of crypto and mainstream finance.

)# US FDIC launches first stablecoin regulation, implementing the GENIUS Act

Key points

• The FDIC has proposed the first regulatory rule for stablecoins, opening a 60-day public comment period;
• The rule focuses on the application process for banks issuing USD stablecoins via subsidiaries, with a 120-day review and appeal mechanism;
• This is the first formal step into rulemaking for stablecoins following the enactment of the GENIUS Act.

Why it matters

• It signifies the transition of US stablecoin regulation from legislation to operational administrative enforcement. The FDIC clarifies “how banks can comply with issuance,” clearing procedural uncertainties and paving the way for capital, liquidity, and risk rules, formally bringing stablecoins into the US banking regulatory system.

( UK advances crypto regulation aligned with the US, European Central Bank accelerates digital euro legislation

Key points

• The UK plans to incorporate crypto firms into its existing financial regulation from 2027, with draft regulations covering exchanges and stablecoin issuance, aligning with US standards rather than the EU’s MiCA “special legislation” model;
• The ECB has completed all technical and preparatory work for the digital euro and is urging the EU Council and Parliament to accelerate legislation, with the digital euro expected to launch in late 2026;
• The UK adopts a “functionally equivalent, principle-based” integrated regulation, while the EU advances both CBDC and MiCA in parallel, forming a dual-track regulatory and monetary framework.

Why it matters

• This indicates Europe is responding to stablecoin expansion from both regulatory and monetary sovereignty perspectives: the UK prioritizes integrating crypto into the financial system to promote institutional adoption, while the EU consolidates its position with the digital euro. Different paths reflect a shared caution and rebalancing regarding private stablecoin influence.

) Capital Deployment

Anchorage Digital acquires Securitize For Advisors (SFA), strengthening crypto wealth management

Key points

• Anchorage Digital, a federally chartered crypto bank, acquires SFA, integrating its crypto wealth management platform for registered investment advisors (RIA) into Anchorage’s ecosystem;
• 99% of SFA’s assets are now custodied by Anchorage; the acquisition unifies custody, trading, and advisory front-end; Securitize will focus on its core asset tokenization business;
• SFA’s net new deposits and assets under management grew over 4,500% in the past year, far exceeding the 16% growth of the RIA industry overall, highlighting accelerated adoption of crypto assets in advisory channels.

Why it matters

• As RIAs become key gateways for institutional crypto adoption, Anchorage consolidates its position in custody and compliant wealth management by integrating advisory platforms, further connecting tokenization and asset allocation scenarios.

Moto completes $1.8 million pre-seed funding, launches Solana on-chain credit card

Key points

• Crypto fintech startup Moto completes $1.8 million pre-seed funding led by Eterna Capital and cyberFund, with participation from multiple crypto and finance angels;
• The project aims to be the “first truly on-chain credit card,” built on Solana, emphasizing native on-chain settlement, ledger, and risk logic, rather than traditional card-linked crypto payments;
• Still early stage, with a waitlist open, and partnerships with infrastructure providers like Privy, Crossmint, Rain.

Why it matters

• Moto moves the core product of credit cards onto the blockchain, reflecting a shift from stablecoin debit cards toward on-chain credit and programmable liabilities. Success could reshape credit card risk management, clearing, and revenue models.

Stablecoin bank Kontigo raises $20 million seed round, annual revenue exceeds $30 million

Key points

• Stablecoin bank Kontigo completes $20 million seed funding, achieving $30 million annual revenue, $1 billion in payments, and 1 million users within 12 months;
• Offers 10% stablecoin interest, BTC cashback on card payments, USDT credit lines, tokenized US stocks, and free international accounts—covering savings, payments, credit, and investment needs;
• Only 7 team members, covering global cross-border flows, with a blockchain financial architecture that does not require local banking licenses.

Why it matters

• Kontigo exemplifies how stablecoin + blockchain as foundational infrastructure can bypass traditional banking licenses, providing a USD and Bitcoin financial gateway for emerging markets, challenging traditional neobank expansion models.

Tether leads $8 million investment in Bitcoin Lightning payment provider Speed

Key points

• Tether, together with Ego Death Capital, leads an $8 million funding round for Lightning Network payment processor Speed;
• Speed builds payment channels on Bitcoin’s Lightning Network, with over $1.5 billion annualized payment volume, serving 1 million+ users and merchants, covering consumers, creators, platforms, and enterprises—showing Lightning’s real commercial scale;
• Tether states this investment aims to strengthen Bitcoin payment infrastructure and expand USDT use cases.

Why it matters

• Indicates Tether, as a stablecoin issuer, is investing in payment infrastructure, pushing stablecoins from “fund storage” to high-frequency payment and settlement layers.

RedotPay completes $107 million Series B, accelerates stablecoin payment expansion

Key points

• Hong Kong-based stablecoin payment platform RedotPay completes $107 million Series B, led by Goodwater, with participation from Pantera, Circle Ventures, and others; oversubscribed, all equity financing;
• The platform’s annualized payment volume exceeds $10 billion, with annual revenue over $150 million, already profitable; serving over 6 million users across 100+ markets, funds to be used for product development, licensing, and M&A expansion;
• RedotPay offers stablecoin payment cards, cross-border disbursement channels, multi-currency wallets, and a self-built P2P marketplace, targeting crypto-native and non-crypto users, emphasizing instant, predictable, cross-border fund flows.

Why it matters

• RedotPay’s profitability amid high growth demonstrates the scalability of stablecoin payments. Continued capital infusion shows stablecoins are evolving from “cross-border alternative” to a global payment infrastructure. Its growth indicates a “USD stablecoin + local consumption” model has strong demand and scalability potential in emerging markets.

Tether’s acquisition of Juventus rejected, fan token JUV plunges over 13%

Key points

• Tether’s proposed €1.1 billion all-cash acquisition was rejected, causing Juventus fan token JUV to fall over 13% from its high, while Juventus’ listed stock rose about 14%, showing clear divergence;
• JUV’s decline reflects sentiment and expectation unwinding, while stock price increase signals positive valuation of the 21% premium acquisition offer;
• Tether holds 11.53% of Juventus shares, proposed to acquire Exor’s 65.4% controlling stake and committed an additional €1 billion investment, but was explicitly rejected.

Why it matters

• Highlights that fan tokens are not equity assets; their value is less linked to corporate governance or acquisition outcomes and more volatile. For Tether, acquiring Juventus would strengthen institutional image and global brand reach; but the rejection shows crypto capital’s financial strength does not equate to institutional recognition in European football.

New Product Highlights

StraitsX to introduce Singapore dollar and USD stablecoins on Solana, supporting instant FX exchange

Key points

• Crypto infrastructure firm StraitsX plans to launch SGD and USD stablecoins on Solana in early 2026, enabling on-chain instant exchange between SGD and USD, creating an on-chain FX trading scene;
• XSGD will be Solana’s first Singapore dollar stablecoin, filling a major fiat gap in Asia;
• Combining Solana’s high speed, low cost, and its x402 payment standard, XSGD/XUSD are especially suitable for AI auto-payments, micro-payments, DeFi, and cross-border settlement in machine-driven economies.

Why it matters

• This move advances stablecoins from “single currency settlement” to “on-chain FX layer,” enabling Solana to support multi-fiat real-time exchange, benefiting cross-border payments, DeFi, and AI automation, and strengthening its role as a global payment infrastructure.

Exodus partners with MoonPay to issue USD stablecoin, building self-custody payment

Key points

• Crypto wallet provider Exodus will launch a fully reserve-backed USD stablecoin with MoonPay, expected to go live in January 2026 within its Exodus Pay payment feature;
• The stablecoin will be issued and managed by MoonPay, supported by stablecoin infrastructure provider M0; Exodus focuses on distribution, user experience, and self-custody wallet scenarios;
• Issuers are expanding into wallet providers, alongside Circle, PayPal, and Fiserv, indicating stablecoins are moving toward front-end applications.

Why it matters

• Competition in stablecoin markets is shifting from issuance to user entry and payment experience. Combining wallets and stablecoins makes stablecoins more integrated into everyday consumer applications.

Tempo launches native transaction type, bringing stablecoin payments and enterprise-level on-chain transactions

Key points

• Tempo introduces “Tempo Transactions,” a native transaction type supporting stablecoin payments, batch processing, scheduled transactions, fee delegation, and biometric login;
• Built-in batch and atomic execution at the protocol layer, targeting payroll, merchant settlement, subscriptions, etc.;
• Infrastructure providers like Crossmint, Fireblocks, Privy, Turnkey have integrated, lowering enterprise on-chain payment barriers.

Why it matters

• Tempo embeds traditional financial-grade payment capabilities directly into blockchain, elevating stablecoins from transferable assets to scalable payment tools, potentially accelerating enterprise and institutional adoption of on-chain payment systems.

Market Adoption

JPMorgan introduces JPMD on Base chain, first on public blockchain for bank deposits

Key points

• JPMorgan extends its tokenized bank deposit JPMD from its own chain to Coinbase’s Layer 2 Base, under controlled conditions, entering the public blockchain;
• JPMD is a blockchain-mapped, interest-bearing version of bank deposits, with different regulatory attributes from stablecoins;
• Currently used for on-chain settlement, margin, and collateral, meeting institutional needs for compliant funds on public chains.

Why it matters

• This is a “defensive on-chain” move by banks, extending core monetary forms into public blockchains before stablecoins expand. Future on-chain funds will coexist as stablecoins and tokenized deposits, with division of roles.

Visa establishes stablecoin consulting services to help banks and enterprises develop on-chain payment strategies

Key points

• Visa’s consulting division launches “Stablecoin Consulting,” providing training, market analysis, strategic planning, and technical support for banks, fintechs, and merchants;
• Visa’s annual stablecoin settlement volume has reached $3.5 billion, supporting over 40 countries and more than 130 stablecoin-linked card programs, with some clients already exploring stablecoin roles in payments;
• Early clients include Navy Federal, VyStar, and Pathward, focusing on cross-border payments and B2B settlement, not just crypto-native experiments.

Why it matters

• Payment giants formalize stablecoins into consulting and solutions, marking a shift from “crypto tools” to mainstream financial infrastructure, potentially accelerating bank and large enterprise on-chain transformation and expanding USD digital circulation.

Ramp enables stablecoin direct payment of paper checks, integrating stablecoins into corporate finance

Key points

• Ramp’s stablecoin lead announced a real payment path from USDC to paper check to bank account, possibly the first;
• Stablecoins as a corporate funding source, without changing the recipient’s reliance on checks;
• Connecting blockchain funds to the traditional US check system, representing a “reverse compatibility” of stablecoins with traditional infrastructure.

Why it matters

• In highly check-dependent scenarios like accounting, legal, government, and healthcare, Ramp allows stablecoins to penetrate corporate payments as a backend funding layer. This shows stablecoins are not replacing traditional channels but are supporting ACH, wire, and checks, quietly taking over the core “where does the money come from” process.

Japan’s SBI collaborates with Startale to launch yen stablecoin, targeting institutional settlement

Key points

• Japanese financial giant SBI Holdings and blockchain firm Startale plan to launch a yen-pegged stablecoin in Q2 2026, targeting global settlement and institutional adoption, compliant token;
• The stablecoin will be issued and redeemed by SBI’s trust bank Shinsei Trust & Banking, and circulated via the compliant trading platform SBI VC Trade, embodying “bank custody + licensed trading” Japan’s compliance path;
• Startale helped build Sony-supported Soneium network and has issued USD stablecoin USDSC; future plans include a dual-currency stablecoin stack with yen and USD.

Why it matters

• This is Japan’s major financial group-led native currency stablecoin project, indicating the yen stablecoin is moving from pilot to infrastructure, paving the way for Japan’s leadership in tokenized assets and on-chain settlement.

SoFi launches bank-issued stablecoin SoFiUSD, targeting institutional settlement infrastructure

Key points

• SoFi issues USD stablecoin SoFiUSD via its licensed national bank SoFi Bank, regulated by OCC and FDIC, fully backed 1:1 with cash, funds held at the Fed, reducing liquidity and credit risks, with some yield sharing;
• SoFiUSD is deployed on Ethereum, providing 24/7 near real-time settlement for banks, fintech, and enterprises;
• SoFi allows partners to use SoFiUSD directly or issue white-label stablecoins into their settlement systems.

Why it matters

• This is the first nationwide US bank issuing stablecoins on a public chain, marking a transition from “crypto product” to regulated financial infrastructure, accelerating traditional banking’s move to on-chain settlement.

JPMorgan launches on-chain tokenized money market fund, invests $100 million

Key points

• JPMorgan Asset Management launches tokenized money market fund MONY (My OnChain Net Yield Fund) on Ethereum, with JPMorgan’s own $100 million investment, minimum subscription of $1 million;
• MONY can be redeemed for cash or USDC, with investors holding tokens representing fund shares, accruing daily yields; underlying assets are short-term low-risk bonds;
• Following BlackRock and others, JPMorgan’s entry accelerates Wall Street tokenization, shortening settlement times, reducing costs, and serving as on-chain collateral.

Why it matters

• Post-GENIUS Act stablecoin regulation, mainstream finance is integrating “interest + on-chain settlement” into core products, potentially reshaping capital flows in crypto ecosystems and fostering institutional on-chain financial infrastructure.

Interactive Brokers supports stablecoin deposits amid rising retail trading competition

Key points

• IBKR allows US retail clients to fund brokerage accounts with stablecoins;
• Functionality will be phased in for qualified users, with funds coming directly from crypto wallets rather than banks;
• The company previously invested in stablecoin infrastructure provider ZeroHash and is considering issuing its own stablecoin.

Why it matters

• Traditional brokerages are incorporating stablecoins into core funding channels to reduce transfer friction and counter native crypto platforms. This signals stablecoins are further penetrating mainstream securities trading beyond payments and clearing.

UAE’s ADNOC supports stablecoin payments at nearly 1,000 stations

Key points

• Abu Dhabi National Oil Company’s retail arm ADNOC Distribution will accept UAE stablecoin AE Coin at nearly 980 stations across UAE, Saudi Arabia, and Egypt, for fueling, convenience stores, and car washes;
• Users can pay via AEC Wallet from Al Maryah Community Bank at fueling stations, convenience stores, and car washes;
• AE Coin is the first stablecoin licensed by the UAE Central Bank, pegged 1:1 to Dirham.

Why it matters

• An important case of sovereign-backed digital asset entering high-frequency, offline daily consumption, validating blockchain payments in retail, and potentially promoting stablecoin adoption in the Middle East, accelerating digital payments and energy retail integration.

YouTube supports US creator payments in PayPal stablecoin PYUSD

Key points

• US-based YouTube creators can choose to receive revenue in PayPal’s USD stablecoin PYUSD;
• This feature is based on existing cooperation between YouTube and PayPal, with PayPal already offering stablecoin settlement to some bulk payment recipients;
• PYUSD’s market cap is about $3.9 billion; YouTube has paid creators over $100 billion in the past four years.

Why it matters

• YouTube’s stablecoin settlement marks the first large-scale integration of stablecoins into a mainstream content platform’s creator payment system, reinforcing its “payment tool” role and opening new applications for stablecoins in global platform economies.

Macroeconomic Trends

Bank of America: US banking is moving toward a multi-year on-chain transformation

Key points

• The OCC has granted conditional trust bank licenses to multiple digital asset firms, accelerating crypto’s integration into the banking system;
• FDIC and Fed are advancing stablecoin capital, liquidity, and approval rules based on the GENIUS Act;
• JPMorgan and DBS are testing tokenized deposits and on-chain settlement on public and permissioned blockchains.

Why it matters

• BoA sees regulation shifting from “discussion” to “implementation,” bringing stablecoins and tokenized deposits into compliant banking. Banks are no longer just observers but are being systematically pushed toward on-chain assets and payments, initiating a long-term infrastructure shift.

JPMorgan: Stablecoins won’t break the trillion-dollar mark, reaching only about $500 billion by 2028

Key points

• JPMorgan estimates stablecoin total market cap will be about $500–600 billion by 2028, well below the trillion-dollar expectation;
• Demand mainly from crypto trading, derivatives, and DeFi, not real-world payments. In 2025, stablecoins will add about $100 billion, mostly from USDT and USDC. This year, stablecoins held in derivatives exchanges increased by about $20 billion; stablecoins are mainly used as trading collateral and idle cash, not as payment currency;
• Banks’ push for tokenized deposits, CBDC, and SWIFT on-chain solutions (which may reinforce bank roles in cross-border settlement) will divert some stablecoin demand.

Why it matters

• The future of stablecoins depends less on “how much they are used for payments” and more on whether they can serve as a long-term capital sink. If increased usage mainly boosts velocity rather than volume, stablecoins face structural competition from bank tokenized deposits and CBDC. JPMorgan believes the future will see coexistence and division among stablecoins, bank deposits, and CBDC, with stablecoin size growing with the overall crypto market rather than exploding independently.

Gold-backed stablecoins approach $4 billion, on-chain safe-haven demand heats up

Key points

• Gold-pegged stablecoins’ market cap exceeds $4 billion, nearly tripling since early 2025’s ~$1.3 billion, with on-chain “hedge assets” demand rising significantly;
• Tether Gold (XAUt) about $2.2 billion, half the market; Paxos Gold (PAXG) about $1.5 billion, together nearly 90%;
• Gold prices rose about 66% in 2025 amid macro uncertainty, geopolitical tensions, and persistent inflation expectations, driving funds into physical gold and tokenized gold simultaneously.

Why it matters

• Gold stablecoins show crypto funds actively embracing traditional safe assets, choosing to “stay on-chain.” This means stablecoins are no longer just fiat-pegged but also a bridge connecting macro hedges and on-chain finance, broadening crypto’s risk hedging dimensions.

UAE elevates asset tokenization to national strategy, reshaping economic infrastructure

Key points

• UAE not only regulates tokenization but embeds it into core sectors like real estate, trade finance, and carbon credits;
• Dubai’s VARA established “Asset-Referenced Virtual Assets (ARVA),” formalizing real asset tokenization under financial regulation;
• Practical applications include blockchain-based real estate registration, replacing lengthy traditional processes.

Why it matters

• UAE views tokenization as “infrastructure for the digital age,” not just a financial experiment, leading the way from rules to deployment. This “build first, regulate later” approach aims to make it a global tokenization model and potentially export new regulatory paradigms.