Original Title: "Cobo Stablecoin Weekly Report NO.11: The Summer of Stablecoins Heats Up, Airwallex Sparks Debate on the Efficiency Advantage of Stablecoins"

The summer of stablecoins is heating up. Its rising momentum stems not only from growth data but also from two distinctly different voices in the market. This week’s report will explore these two perspectives to capture the evolving pulse of stablecoins.

On one side, there is cautious observation from the traditional fintech sector. The founder of the fintech company Airwallex recently sparked a discussion about the "efficiency advantage" of stablecoins, suggesting that modern payment systems are already highly efficient. However, this perspective might undervalue the innovative essence of stablecoins—beyond transaction speed and cost, their true value lies in their programmable nature, enabling settlement, revenue sharing, and permission controls to be directly embedded within the asset itself. Such debates are a signal that new technology is beginning to challenge the boundaries of traditional systems, a natural phenomenon within the innovation cycle.

On the other side, there is visible progress in practical implementations. Stripe, through the acquisition of Privy, is bridging the last mile of stablecoin payments between backend and frontend systems. Shopify has started integrating USDC payments for merchants. Meanwhile, the collaboration between Platform X and Polymarket marks the integration of cryptoassets into the internal economic loop of "super apps." The focus is no longer on issuing stablecoins themselves, but on building the most robust ecosystems and distribution frameworks around them.

In emerging markets, the competition is even more direct and intense. Tether has launched its dedicated chain Plasma, aiming to reduce its dependency on Tron. However, Tron, with over 50% of USDT’s circulating supply and ultra-low costs, has already become the de facto standard for "street dollar." The challenge then becomes a classic startup problem: how do you persuade a deeply entrenched user base reliant on an existing network to migrate to a new and untested system at scale? This issue is less about technology and more about trust barriers—it represents both the challenge and the real opportunity for crypto payments.

It could be said that stablecoins, as an emerging innovation, are still in their developmental phase. The current state exhibits traits typical of most early-stage technologies: some are using them to build the future, while others feel they aren't mature enough yet. Meanwhile, in another part of the world, they are unexpectedly solving the most fundamental of problems. It’s a massive "schlep," but also a massive opportunity.

Market Overview and Growth Highlights

The total market capitalization of stablecoins has reached $251.08 billion, reflecting a week-on-week increase of $1.42 billion. In terms of market segmentation, USDT continues to dominate with a 62.14% share. USDC is in second place, with a market capitalization of $60.8 billion, accounting for 24.22% of the market.

Blockchain Network Distribution

Top 3 Networks by Stablecoin Market Capitalization:

· Ethereum: $124.632b (124.6 billion USD)

· Tron: $79.039b (79 billion USD)

· Solana: $11.113b (11.1 billion USD)

Top 3 Fastest Growing Networks This Week:

· XRPL: +37.82% (RLUSD makes up 94.32%)

· Unichain: +24.84% (USDC makes up 49.8%)

· Filecoin: +20.19% (USDFC makes up 99.45%)

Data Source: DefiLlama

Stripe Acquires Privy, Bridging the Final Mile for Stablecoin Adoption

Global payment giant Stripe has confirmed the acquisition of crypto wallet provider Privy. This is no ordinary merger but rather the culmination of years of strategic planning, shedding light on Stripe's endgame in the stablecoin ecosystem. Connecting the dots between Stripe’s acquisition of Bridge, launching stablecoin accounts, and now acquiring Privy, a clear blueprint for vertically integrated payment infrastructure emerges. From the settlement engine at the base layer, to enterprise accounts at the middle layer, and now user wallets on the front end, Stripe has secured all critical components.

The crux of this series of moves is leveraging Stripe's extensive global merchant network to solve the "last-mile" adoption challenge of stablecoins. Imagine a scenario where any user holding USDC can seamlessly spend it across a multitude of Stripe-enabled merchants, with the merchants receiving payments in their familiar local fiat currency. This is the point where stablecoins as a payment solution truly unlock their value. At the heart of achieving this "invisible" experience lies the technology represented by Privy.

Privy’s “embedded wallet” (Wallet-as-a-Service) product allows developers to easily integrate non-custodial wallets, enabling users to bypass managing seed phrases and other complex operations, offering an experience indistinguishable from traditional online accounts. This aligns perfectly with Stripe’s mission to simplify complexity for developers.

Looking back at the history of human innovation, the adoption of new technologies often required a powerful “bridge” to simplify complexities. Stripe is positioning itself as the key bridge for stablecoins to enter the mainstream market. When a massive commercial network opens its doors to stablecoins, a powerful flywheel effect is set into motion: more use cases attract more users to hold stablecoins, and a large user base compels more businesses to integrate with stablecoins.

By completely "hiding" the complexity of the crypto rails behind a familiar API, Stripe signifies a fundamental shift in stablecoin adoption—from the "tech-driven" approach dominated by crypto-native companies to the "market-driven" strategy led by established payment providers.

This time, mainstream crypto adoption might genuinely be here.

Stablecoin-Dedicated Blockchain Plasma: USDT's Declaration of Independence

While stablecoins have proven to be the crypto industry's most product-market-fit "killer app," dedicated chain-level infrastructure built specifically around core assets like USDT remains rare. Plasma is one of the few exceptions—a high-performance blockchain designed specifically for stablecoin payment use cases, crafted with USDT in mind.

Plasma's architecture revolves around a core goal: pushing the stablecoin payment experience to its limits—zero transaction fees, no additional token requirements, and enabling users to make payments and transfers with nothing but USDT. This design positions USDT as an "on-chain first-class citizen." Backed by the resources and funding of Tether and Bitfinex, Plasma offers exclusive channels, customized protocols, Bitcoin-grade security anchoring mechanisms, and a unified chain-wide native stablecoin USDT₀—an on-chain asset that abstracts and fully embodies USDT's functionality.

In contrast, Circle takes an alternative approach. Using its CCTP cross-chain protocol, Circle supports USDC's movement across multiple chains such as Ethereum, Solana, and Arbitrum. However, the user experience of USDC post-bridging still depends on the performance, cost, and interaction complexity of the target chain. Circle operates more as an "adapter" for the multi-chain crypto ecosystem.

Tron’s Moat: Deeper Than You Think

However, the biggest challenge for Plasma doesn't come from Circle but lies in facing a highly asymmetrical head-on competition with Tron.

Of all the globally circulating USDT, over 50% runs on the Tron network. In the world of "street dollars," TRC20-USDT is the de facto standard. This dominance stems from Tron adopting an extremely low-cost strategy during critical phases of its development: by staking a small amount of TRX to gain "energy," users could achieve near-zero transaction fees. For small-scale, high-frequency payment scenarios in emerging markets, this was a rational choice. Over the years, this strategy helped build a massive user base and deeply ingrained usage habits, establishing Tron as the default network for OTC traders, P2P merchants, and small-scale traders across regions like Southeast Asia, Latin America, Africa, and Eastern Europe.

Over 50% of the globally circulating USDT operates on the Tron network

The Harsh Reality of "Good Enough"

The core users of Tron are not cutting-edge DeFi farmers, but rather the "street dollar" users who need simple, reliable, and inexpensive tools. For this demand, Tron's technology is good enough—it’s fast, low-cost, and user-friendly.

Many of these business networks are established on offline interpersonal trust. For a new blockchain to replace Tron, it must not only provide superior technology but also dismantle the already intricate social and commercial trust networks. Users lack strong incentives to bear the migration costs of learning a new wallet, recording new seed phrases, or changing recipient addresses.

Even if Plasma surpasses Tron on all technological fronts, it cannot easily replicate the extensive network effects, deep commercial penetration, and entrenched user habits Tron has cultivated over years in specific markets. Unless it can provide a 10x improvement in the overall experience, it will be difficult to compel this highly efficient and massive ecosystem to "Move On."

The key to defeating Tron lies in whether Plasma can establish localized trust in the emerging markets where it dominates. Tether’s attempt to reduce its dependence on Tron signifies that the stablecoin infrastructure is at a crossroads between "universal adaptability" and "vertical specialization." However, the true test lies in whether it can win real users and transaction volume from this deeply entrenched leader.

When Top FinTech Companies Like Airwallex Start Evaluating the Value of Stablecoins

With stablecoin issuer giant Circle ringing the bell on the New York Stock Exchange, the "stablecoin fever" has further gained traction in financial circles. Once considered a niche tool within the crypto world, stablecoins are gradually being integrated into critical financial scenarios such as clearing, liquidity, and corporate payments. Not only are stablecoins reshaping cost structures, but they are also challenging the intermediary model of traditional clearing systems—naturally sparking widespread discussion in the market.

Recently, Jack Zhang, founder of the FinTech company Airwallex, shared his thoughts on the practical application value of stablecoins. He noted that in G10 major currency regions, modern FinTech solutions have already significantly improved cross-border payment efficiency, rendering the "faster and cheaper" advantages of stablecoins less prominent in certain scenarios. Particularly when funds need to be transferred into traditional banking systems, additional costs may offset some of these advantages. According to him, the advantages of stablecoins may be more evident in the "dollarization" needs of emerging markets.

This perspective has its merits, but it may underestimate the paradigm shift brought by stablecoins. What stablecoins aim to redefine is not merely the speed of payment interfaces, but the underlying settlement system—one that is geographically siloed, time-constrained, and reliant on multi-layered liquidity redistribution. When we expand the concept of "cost" to include account management complexity, capital held up in transit, and the operational discontinuities caused by holidays, the value of a global, unified, 24/7, USD-denominated settlement layer goes well beyond a simple comparison of transaction fees.

More importantly, the most innovative feature of stablecoins lies in their "native programmability."

Comparing stablecoins to traditional fintech solutions in terms of "payment experience" is akin to comparing early smartphones with feature phones. The revolution of smartphones was not that they were "better phones," but that they were computing platforms connected to the internet, giving rise to entirely new application ecosystems. Likewise, stablecoins are not just "more efficient money"; they are "programmable value carriers." This means settlement logic, financial splits, and real-time financing can all be embedded within the assets themselves, streamlining intermediary layers and approval processes. This direction of innovation is something traditional fintech, despite ongoing optimization, may find hard to fully achieve.

When professionals in the financial sector begin to seriously study how to integrate with this new system, it in itself is the market's most honest signal: stablecoins represent the future—they are the "smartphones" of the next-generation value internet. The real future lies in understanding and integrating the strengths of both the old and new paradigms. Whether for traditional financial institutions or innovative fintech companies, this transformation demands deep thought on how to position themselves for the future.

Macro Trends

Analysis Suggests Tether Could Be Valued at $515 Billion if Listed, CEO Calls Bitcoin and Gold Reserve Growth "Possibly Conservative"

Key Takeaways

· Jon Ma, co-founder and CEO of Artemis, analyzed that if Tether's valuation is based on Circle's current multiple of 69.3 times EBITDA, its potential market cap at IPO could reach $515 billion, surpassing Coca-Cola and Costco to become the world's 19th largest company

· Tether CEO Paolo Ardoino responded that this is a "beautiful number," but given the company's ongoing growth in Bitcoin and gold reserves, the valuation may be "a bit conservative"

· Tether's net profit for 2024 is estimated at $13 billion ($7 billion from treasuries and repos, $5 billion from unrealized gains on Bitcoin and gold holdings), with an anticipated EBITDA of $7.4 billion in 2025

Why It Matters

Circle’s successful public listing provides a market benchmark for the valuation of stablecoin issuers, even though the current 69.3x EBITDA multiple is considered "crazy and unsustainable." Tether’s potential valuation reflects the market's high recognition of the stablecoin business model, particularly the substantial interest income generated in a high-interest-rate environment. Unlike traditional financial institutions, Tether increases growth potential by holding Bitcoin and gold as part of its reserves. Ardoino’s response also hints that Tether might be contemplating a potential listing, which would bring more institutional recognition and regulatory clarity to the entire crypto industry, further driving the mainstream integration of stablecoins into the global financial system.

Capital Deployment

Anduril Founder Palmer Luckey to Invest in Stablecoin Startup Atticus at a Minimum Valuation of $1.5 Billion

Quick Highlights

· The stealth-mode stablecoin financial startup Atticus is in negotiations for a new funding round, with a valuation between $1.5 billion and $2 billion, led by Palmer Luckey, co-founder and CEO of U.S. defense tech firm Anduril.

· Atticus was founded by Owen Rapaport and Jacob Hirschman and currently lacks an official website. Existing investors include Haun Ventures, whose partner Diogo Monica is a co-founder of Anchorage Digital, the first crypto-native bank to receive federal licensing in the U.S.

· If the funding round closes, Atticus would become this year’s first new stablecoin "unicorn," signaling the growing convergence of stablecoins with traditional finance.

Why It Matters

Investors are betting on the imminent mainstream adoption of stablecoins. Palmer Luckey’s involvement, as the founder of VR giant Oculus and head of defense tech firm Anduril, highlights strong interest from traditional tech and defense industry capital in the stablecoin sector.

Former Adyen Executive Co-Founds Stablecoin Payments Company Noah, Raises $22 Million

Quick Highlights

· Thijn Lamers, former EVP of Global Sales at Adyen, co-founded the stablecoin startup Noah and serves as its President. This industry veteran has transitioned from an investor to a co-founder, symbolizing a major shift as a high-ranking executive from a traditional payments giant "votes with his feet" to endorse stablecoin technology.

· Noah aims to build a new global payment clearing network based on stablecoins, offering enterprise-grade USDC payment solutions and developer APIs, creating a 24/7 programmable value transfer network that bypasses traditional banking systems.

· The company already supports conversions for 50 currencies and real-time fund transfers across 70 countries, with transaction volumes exceeding $1 billion. It has raised $22 million in a seed funding round led by LocalGlobe.

Why It Matters

Lamers' transition from Adyen to Noah signifies a paradigm shift in the payments industry. If Adyen's mission is to "unify and optimize old rails" (by consolidating fragmented global payment systems into a single platform), then Noah's mission is to "design and build new rails." This talent migration indicates that the optimization of traditional payment systems is reaching its limits, while new financial infrastructure based on stablecoins is emerging as one of the most promising growth areas for the next decade. Noah not only provides technology but also brings compliance expertise and business networks—key elements needed to propel stablecoin payments from concept to mainstream adoption. As the industry transitions from its early disruptive phase to a mature build-out phase, the involvement of experienced professionals like Lamers lends unprecedented commercial credibility to stablecoin payments, signaling that this technology is ready to become a core component of next-generation global financial infrastructure.

Circle Stock Soars as Two ETF Products Are in Development

Key Highlights

· Bitwise and ProShares both filed for ETFs related to Circle (CRCL) on June 6, vying to capture a share of this trending asset market.

· ProShares plans to launch an ETF designed to deliver 2x the daily return of Circle’s stock performance, utilizing leverage strategies to amplify investment gains.

· Bitwise’s ETF will employ a covered-call strategy, generating additional income by holding CRCL shares and selling call options.

Why It Matters

Circle's stock price continued its meteoric rise post-IPO, jumping another 9% on Monday. Since its listing last week, the stock has nearly quadrupled in value. Two major ETF issuers have swiftly filed applications for related products, reflecting strong institutional interest in the leading stablecoin issuer. This marks another step toward the integration of cryptocurrency companies with traditional financial products, offering retail investors a new avenue to indirectly participate in the cryptocurrency ecosystem through familiar ETF tools. Investor enthusiasm for Circle is not only driven by USDC's position as the second-largest stablecoin but also by the stablecoin business model, which demonstrates relatively resilient revenue streams and growth potential within the cryptocurrency industry.

OpenTrade Secures $7 Million in a16z crypto-backed Funding to Provide Stablecoin Yield Solutions in High-Inflation Markets

Key Highlights

· UK-based fintech company OpenTrade has completed a $7 million strategic funding round led by Notion Capital and Mercury Fund, with participation from a16z crypto, AlbionVC, and CMCC Global, bringing its total funding to $11 million in just six months.

· OpenTrade operates a "yield-as-a-service" platform designed for fintech apps, trading platforms, and neobanks, enabling their customers to offer end-users stablecoin yields of up to 9% in USD and EUR.

· Fintech companies like Spain’s Criptan and Colombia’s Littio have already integrated OpenTrade's backend system to provide stablecoin yield services to users in high-inflation countries across Latin America and Europe.

Why It Matters

OpenTrade offers financial hedging tools to emerging markets plagued by inflation. In many high-inflation countries, local currencies continue to depreciate, eroding personal wealth, while traditional USD accounts remain restrictive or cumbersome. OpenTrade’s B2B2C model empowers local fintech companies to rapidly distribute stablecoin-based yield services. The speed of OpenTrade’s $11 million fundraising in just six months underscores investor confidence in the potential application of stablecoins in economically unstable regions. This service provides individuals with an accessible inflation hedge, creates new markets for real-world asset-backed DeFi yields, and grants local fintech companies a differentiated competitive edge.

Tether Invests $82 Million in Gold Investment Firm Elemental Altus, Boosting Precious Metals Reserve Strategy

Key Takeaways

· Tether’s investment arm acquired approximately 33.7% of the publicly listed precious metals investment firm Elemental Altus for 121.6 million Canadian dollars (around 89.2 million USD).

· CEO Paolo Ardoino stated this investment reflects Tether’s “confidence in the fundamentals of gold and its crucial role in financial markets,” providing strategic support for Tether Gold and the future infrastructure of commodity-backed digital assets.

· Tether referred to its increased exposure to gold as a “dual pillar strategy,” operating in tandem with its holdings of over 100,000 BTC (valued at $10.7 billion).

Why It Matters

This investment signifies Tether’s active diversification of the reserve assets backing its stablecoin USDT, branching out into physical assets and precious metals. As the U.S. regulatory framework for stablecoins nears, issuers need to ensure the compliance and diversity of their reserve assets. Earlier this year, JPMorgan suggested that Tether might need to sell part of its Bitcoin holdings to meet proposed regulatory requirements. By increasing its exposure to gold, Tether not only enhances the stability of its asset portfolio but also lays the groundwork for potential future commodity-backed digital assets. This move demonstrates that Tether is strategically balancing its portfolio between crypto assets and traditional value-storing assets to adapt to evolving regulatory climates and strengthen trust in USDT.

Regulatory Compliance

Ant International Plans to Apply for Stablecoin Licenses in Singapore, Hong Kong, and Luxembourg, Focusing on Cross-Border Payments and Treasury Management

Key Takeaways

· Ant International plans to apply for stablecoin issuance licenses in Hong Kong, Singapore, and Luxembourg. The company will submit its application immediately after Hong Kong’s “Stablecoin Regulations” take effect in August.

· Last year, Ant Group handled more than $1 trillion in global transactions, one-third of which was completed through its blockchain-based Whale platform. Ant has already signed partnerships with over 10 global banks, including HSBC, BNP Paribas, JPMorgan, and Standard Chartered.

· The initiative aims to strengthen Ant’s blockchain business and support its cross-border payment and treasury management services, which show significant growth potential due to transaction volumes driven by Alibaba’s e-commerce platform and external clients.

Why It Matters

Ant International's active expansion into the stablecoin business reflects the trend of global fintech giants venturing into the digital asset space. Since its IPO was halted in 2020, Ant Group has been developing new business lines to drive growth, with international operations becoming a key focus. Ant International has already established an independent board of directors, paving the way for a potential spin-off and IPO. According to Bloomberg, this unit is expected to generate nearly $3 billion in revenue by 2024, marking two consecutive years of adjusted profitability. Meanwhile, the global stablecoin market has grown to approximately $243 billion, with regulators actively crafting rules to mitigate risks like stablecoin collapses and money laundering. Ant's Whale platform supports a variety of tokenized assets for global banks and institutions, leveraging privacy-preserving technologies like homomorphic encryption and multi-party verification. This gives it a competitive edge in the enterprise blockchain market. Following in the footsteps of financial giants like PayPal, Ant International’s entry into the stablecoin sector signifies a deeper integration of traditional finance and crypto technologies, potentially driving significant changes in global payments and treasury management.

South Korea's Ruling Party Proposes Allowing Companies to Issue Stablecoins, Bill Submitted to Parliament

Key Highlights

· South Korea's ruling Democratic Party has proposed new legislation allowing qualified companies to issue their own stablecoins, submitting a "Basic Law on Digital Assets" to Parliament.

· Under the proposal, companies must meet capital requirements and ensure refunds through reserve backing, aiming to enhance transparency in the cryptocurrency sector while encouraging competition.

· This initiative comes amidst surging global interest in stablecoins, partly driven by progress in U.S. stablecoin regulations.

Why It Matters

The proposed legislation by the ruling party of President Lee Jae-myung represents a significant shift in South Korea's crypto regulatory landscape and could position the country as a hub for stablecoin innovation in Asia. Allowing companies to issue stablecoins could spur more competition in the payments industry, particularly given South Korea's already advanced digital payment infrastructure. This move also reflects a broader global trend toward regulators embracing, rather than restricting, stablecoin development—a trend likely to further drive institutional adoption.

Hong Kong's New Stablecoin Regulations: How Small Teams Can Find Opportunities in a Market Dominated by Giants

Key Highlights

· Hong Kong's stablecoin regulatory sandbox has fostered "star" projects like JD.com and Circle, with these early entrants gaining a two-year lead over newcomers by mastering system development, compliance processes, and risk management frameworks.

· Hong Kong's regulations set high thresholds for stablecoin issuers, including HK$25 million in registered capital, the establishment of local entities, sustainable profitability, 100% reserve asset backing, and strict segregation of custodial operations—effectively sidelining grassroots entrepreneurs.

· Hong Kong's stablecoin policy adopts a "pilot-first" strategy, potentially issuing only a limited number of licenses annually. The policies may be adjusted at any time, creating significant entry and operational risks for SMEs and startup teams.

Why it matters

Hong Kong's stablecoin regulations are setting the global trend for regulatory frameworks. While license issuance is expected to be dominated by large financial institutions and tech giants, the service ecosystem surrounding stablecoins offers abundant opportunities for smaller teams. Entrepreneurs should pivot toward a "pick-and-shovel" strategy, focusing on five key compliance tracks: Payment Infrastructure (PayFi), Compliance Tool Provision, Cross-Chain Bridging Services, Stablecoin Asset Management, and Reserve Asset Management. These areas demand high levels of expertise and technical capabilities but have relatively low capital barriers, enabling smaller teams to share the stablecoin market’s growth without directly competing with major players. As Hong Kong’s stablecoin regulatory framework matures, these ecosystems will become critical bridges connecting traditional finance with the Web3 world.

Market Adoption

Stripe Engages Banks on Stablecoin Applications, Payment Giant Expands Stablecoin Efforts

Key Takeaways

· Payment giant Stripe has initiated preliminary discussions with multiple banks to explore potential stablecoin applications in banking institutions, signaling the growing importance of digital assets in global capital flows.

· Stripe recently launched several stablecoin-related products, including a platform enabling fintech companies to quickly launch stablecoin-linked card programs for their customers. The current global stablecoin circulation stands at approximately $243 billion.

· Earlier this year, Stripe acquired the stablecoin platform Bridge for $1.1 billion. The company now has about 100 employees working globally on stablecoin and crypto businesses and plans to expand hiring in San Francisco, New York, Dublin, and London.

Why it matters

The payments industry is rapidly embracing stablecoins, transforming them from mere crypto trading tools into mainstream payment instruments. Stripe President John Collison noted, "A significant volume of future payment transactions will be conducted via stablecoins," with the technology expected to drastically reduce costs and time for cross-border payments. Meanwhile, payment giants like PayPal and Visa are also advancing their stablecoin operations, with banking technology providers such as FIS, Fiserv, and Jack Henry considering ways to help clients leverage the technology. Against the backdrop of increasingly clear global regulatory stances, the UK, U.S., and EU are all pushing forward with stablecoin legislation. Collison warned that if London's financial district does not accelerate its regulatory frameworks, it risks falling further behind in the race for stablecoin integration.

Deutsche Bank Explores Stablecoins and Tokenized Deposits with Multiple Parallel Strategies

Key Highlights

· Deutsche Bank is evaluating various stablecoin approaches, including issuing its own tokens or joining industry-wide initiatives, while also considering developing proprietary tokenized deposit solutions for payments

· The EU's unified regulatory framework is in place, and U.S. stablecoin legislation is making progress in Congress. Banks worldwide are actively exploring ways to leverage these tokens and underlying blockchain technology to improve efficiency

· Deutsche Bank has strategically invested in cross-border payment settlement firm Partior, participated in the BIS and central bank-led Agorá project, and collaborated with Swiss blockchain firm Taurus to develop digital asset custody services for institutional clients

Why It Matters

Large financial institutions are increasingly confident in their expansion into the digital asset space. While many ventures have been ongoing for years, large-scale practical applications have been limited. Now, the industry is beginning to see early signs of customer adoption—JPMorgan's Kinexys network processes over $2 billion in transactions daily on average, with transaction volume growing tenfold last year. Santander Bank has plans to offer stablecoin and cryptocurrency services to retail customers, and DWS Group, a Deutsche Bank subsidiary, is collaborating with Dutch market maker Flow Traders and crypto fund Galaxy Digital to issue a euro-denominated token. Similarly, ING Group's CEO asserts that a "European stablecoin has a key role in digital-world settlements," highlighting the accelerated digital asset strategy adoption among traditional financial institutions.

Société Générale Launches USDCV Stablecoin on Ethereum and Solana

Key Highlights

· Société Générale's crypto division, Société Générale-Forge, has announced the launch of the USD CoinVertible (USDCV), a U.S. dollar-pegged stablecoin issued on both Ethereum and Solana blockchains

· The Bank of New York Mellon (BNY Mellon) will act as the asset custodian for the stablecoin, with USDCV transactions expected to commence in July. However, the product will not be available to U.S. users

· This issuance is a natural progression following the launch of the MiCA-regulated euro stablecoin, EURCV, in April 2023. It aims to provide seamless 24/7 fiat-to-digital dollar or euro conversions

Why It Matters

The issuance of stablecoins by Société Générale, one of Europe's top financial institutions, signifies the accelerated trend of traditional banking embracing blockchain-driven financial innovation. Use cases for USDCV and EURCV span across multiple domains, including crypto trading, cross-border payments, on-chain settlements, forex transactions, and cash management, showcasing the potential of stablecoins as versatile financial tools. Société Générale’s decision to deploy on both Ethereum and Solana underscores institutional demand for high-performance blockchain networks.

Tech Giants Apple, X, Airbnb, and Google Explore Stablecoin Adoption to Lower Transaction Costs

Key Highlights

· According to Fortune Crypto, Apple, X (formerly Twitter), Airbnb, and Google have initiated preliminary discussions with crypto companies to explore the integration of stablecoins for reducing transaction costs and enabling more cost-effective international payments.

· These companies join the ranks of tech giants like Meta and Uber, which are also evaluating the adoption of dollar-pegged assets, driven by an improving regulatory environment and growing investor demand for stablecoins.

· On Friday, the X platform announced that Polymarket has become its "official" prediction market partner. This decentralized prediction platform recorded a trading volume of $1.06 billion in May, with over 267,000 active traders.

Why It Matters

Tech giants’ interest in stablecoins reflects a broader shift in traditional enterprises’ attitudes toward blockchain-powered payment solutions. The partnership between X and Polymarket integrates prediction markets directly into a social media platform, enabling event-driven wagering to go viral, while catering to high-frequency, small-scale betting needs. Crypto-native asset solutions are inherently well-suited for internet-driven use cases. With Circle’s successful public listing, stablecoins are rapidly evolving from speculative instruments to mainstream payment infrastructure. Musk’s vision to transform X into a “super app” akin to WeChat is advancing quickly. These trends highlight that stablecoins and crypto applications are expanding from niche markets to broader social media and e-commerce ecosystems, potentially becoming the cornerstone of future decentralized social finance infrastructures.

Plasma Partners with Aave to Build Permissionless Lending Infrastructure

Key Highlights

· Plasma has announced a strategic partnership with DeFi leader Aave, which will join as a launch partner on Plasma’s network and provide support for Aave’s stablecoin, GHO.

· Aave, as the largest liquidity protocol globally, has facilitated over $40 billion in loans, accounting for more than 20% of total DeFi liquidity, providing permissionless and bank-free lending services to users worldwide.

· Plasma is collaborating with Aave founder Stani Kulechov, as well as the Avara, AaveChan, and Horizon teams to distribute USD₮ financial infrastructure to global institutions and underserved users.

Why It Matters

This collaboration marks a significant step in expanding DeFi infrastructure to broader users and institutions. By integrating Aave's permissionless lending capabilities with Plasma's scalability, the partnership aims to address the lending needs of billions underserved by traditional financial systems. Lending, as a core function of financial services, remains inaccessible to vast populations globally, while Aave’s decentralized protocol eliminates banks and intermediaries to provide an inclusive financial solution.

US Bancorp, the fifth-largest bank in the U.S., explores stablecoin business as crypto custody services rebound

Quick Highlights

· Gunjan Kedia, CEO of U.S. Bancorp, stated that the bank is "exploring and observing" its potential role in the stablecoin space, considering the launch of its own stablecoin through partnerships.

· The institutional crypto custody service launched by the bank in 2021 saw slow development under the Biden administration’s strict regulatory stance but has regained momentum under the Trump administration’s pro-crypto policies.

· US Bancorp is likely to provide infrastructure services for stablecoins, including asset backing and custody services, with several pilot projects currently underway.

Why It Matters

As the fifth-largest U.S. bank, US Bancorp’s exploration into stablecoins signals an acceleration in traditional financial institutions’ integration into the digital asset space. Unlike the Biden-era SEC's tough enforcement actions on the crypto industry, the Trump administration has largely rolled back prior regulatory measures targeting crypto and committed to halting new regulations, creating a favorable environment for institutional players to re-engage with the market. With the total market capitalization of the top four stablecoins reaching a record $223 billion and the U.S. Senate advancing the GENIUS Act for stablecoin regulation, major banks are re-evaluating their positioning in this fast-growing market. However, Kedia pointed out that, despite appealing transaction volume figures, 90% of stablecoin transactions are still confined to crypto-to-crypto trades, indicating that stablecoins have yet to penetrate mainstream financial systems. As regulatory frameworks solidify, the entry of traditional financial institutions like US Bancorp into the stablecoin market might mark a pivotal moment in the integration of digital assets and traditional financial systems.

Shopify Integrates Coinbase Base Network, Enabling USDC Stablecoin Payments

Key Highlights

· On June 12, Shopify launched USDC stablecoin payment capabilities for select merchants on Coinbase’s Ethereum Layer 2 network, Base, with plans to roll it out to all merchants using Shopify Payments by the end of the year.

· Merchants can accept on-chain USDC payments and receive local currency settlements without incurring foreign exchange transaction fees. Shopify also plans to offer a 1% cashback incentive for customers who use USDC for payments.

· The initiative is built on a new open-source payment protocol co-developed by Coinbase and Shopify. It supports standard features like delayed settlements, tax calculations, and refund processing, directly integrating with merchants’ existing order fulfillment systems.

Why It Matters

This integration signifies stablecoins’ accelerating adoption in mainstream e-commerce. With stablecoin supply up 54% year-over-year, their use cases have expanded from cryptocurrency trading to payments and international remittances. By opting for Base’s low-cost, fast, and secure transaction environment, Shopify opens the door for millions of merchants worldwide to access crypto payment infrastructure. This move could significantly reduce cross-border commerce costs while boosting efficiency and is likely to drive stablecoin adoption in retail payments, introducing crypto-native payment infrastructure innovations to global e-commerce.

Conduit and Braza Group Launch Stablecoin-Facilitated FX Swap Services in Brazil

Key Highlights

· Crypto payment infrastructure provider Conduit has partnered with Brazil’s Braza Group to launch real-time foreign exchange swap services between the Brazilian real (BRL), US dollar (USD), and euro (EUR) using stablecoins.

· The service reduces payment processing times from several days via traditional SWIFT channels to just minutes, significantly enhancing cross-border transaction settlement efficiency.

· Stablecoins are increasingly popular in cross-border payments, with industry forecasts predicting substantial growth in this sector by 2030.

Why It Matters

This partnership illustrates how stablecoins address efficiency bottlenecks in traditional cross-border payment systems. As Latin America’s largest economy, Brazil’s cross-border payment market is vast but plagued by long processing times and high fees associated with traditional FX systems. Real-time FX swaps enabled by stablecoins not only dramatically improve transaction speed but also have the potential to lower cross-border payment costs for businesses and individuals. As global stablecoin payment infrastructure continues to evolve, similar solutions are expected to gain traction in other emerging markets, providing more efficient alternatives for international trade and remittance activities.

Financial Infrastructure Giant DTCC Considers Integrating Stablecoin Technology

Key Highlights

· According to a report by The Information, the Depository Trust & Clearing Corporation (DTCC) is developing a stablecoin project

· DTCC recently noted in a blog post that stablecoin use cases are on the rise, including "corporate cross-border cash management and payment systems"

· DTCC’s digital asset initiatives are led by Global Head of Digital Assets Nadine Chakar, with the company previously launching the blockchain-based AppChain platform for tokenized collateral management

Why It Matters

As an SEC-registered entity processing trillions of dollars in securities transactions annually, DTCC’s entry into the stablecoin space could profoundly impact the convergence of traditional financial infrastructure with digital assets. This move aligns with trends predicted by U.S. Treasury Secretary Scott Bessent, who stated during a Senate hearing that the market for dollar-backed stablecoins could surpass $2 trillion within three years. Meanwhile, financial institutions like Société Générale and Bank of America are also exploring issuing dollar-pegged tokens, driven in large part by the advancement of the GENIUS Act, which aims to standardize stablecoin regulation in the U.S. DTCC’s involvement as a back-end infrastructure provider may help clear critical barriers to institutional adoption of stablecoin technology, accelerating the integration of traditional finance with blockchain technology.

New Product Launch

Flipcash Rolls Out Global Zero-Fee Digital Cash App on Solana

Key Highlights

· Flipcash, a payment app founded by Kik creator Ted Livingston, formerly known as Code, digitizes the physical cash experience, allowing users to complete instant transfers by showing a virtual cash code for the recipient to scan

· The app enables instant transfers worldwide with automatic currency conversion, zero fees, and no exchange spreads. It can be used across regions via video call or shared links

· Livingston has shifted from the previous Kin cryptocurrency to utilizing USDC stablecoins, with all balances held in regulated dollar stablecoins. Users can withdraw funds anytime through platforms available in over 190 countries

Why It Matters

Flipcash represents an important innovation in stablecoin payments within consumer scenarios, especially when taking Ted Livingston’s prior lessons from the Kik project into account. The strategic shift from using a native cryptocurrency to leveraging the USDC stablecoin reflects the industry's maturity and pragmatic approach. Built on the Solana blockchain, Flipcash combines the simplicity and privacy of cash with the global reach of digital payments, while enabling a sustainable operational model powered by interest income on stablecoin assets. This borderless, fee-free, and intermediary-free payment experience is particularly well-suited for cross-border use cases such as travel settlements and international remittances. As a new project from an experienced entrepreneur, Flipcash showcases how stablecoins can deliver a frictionless global payment vision that traditional finance struggles to provide.

Tether Launches Non-Custodial Wallet Development Kit (WDK), Targeting AI and Robotics Financial Needs

Key Highlights

· Tether has launched an open-source Non-Custodial Wallet Development Kit (WDK) aimed at building advanced mobile and desktop wallet solutions, offering fully autonomous Bitcoin and Tether token wallet capabilities.

· The WDK particularly emphasizes financial autonomy for AI agents and robots, enabling them to manage their own assets and execute transactions without human intervention.

· The toolset leverages P2P cluster technology to synchronize nodes and broadcast transactions. Tether promises that WDKv2 is on the horizon, which will include comprehensive documentation, support, and examples.

Why It Matters

Tether's release of WDK marks a pivotal step in the evolution of stablecoin infrastructure toward greater decentralization. As the largest stablecoin issuer by market cap, Tether’s move could have significant implications for the broader crypto wallet ecosystem. The WDK’s focus on financial autonomy for AI agents highlights Tether's forward-thinking approach to preparing for an AI-driven economy. By offering open-source and configurable wallet infrastructure, Tether not only expands its ecosystem but also equips developers with tools to build censorship-resistant, decentralized financial applications. Social video platform Rumble has already begun developing wallets based on this architecture, hinting at potential mainstream adoption of this technology. The release of WDK further cements Tether’s leadership in the stablecoin market and could accelerate the adoption of non-custodial wallets within the future financial landscape.

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