Original Title: "Cobo Stablecoin Weekly Report NO.18: From the US to Hong Kong, Stablecoin Regulation Enters 'National-Level Race' Stage"

Welcome to the 18th edition of the Cobo Stablecoin Weekly Report.

This week, the global stablecoin space has seen key developments in regulatory clarity and practical application, laying a solid foundation for its accelerated integration into mainstream finance.

The US has released a 168-page "Digital Asset Strategy Report," which, for the first time, categorizes stablecoins as core financial infrastructure and sets regulatory boundaries for decentralized finance (DeFi) and self-custody to eliminate past uncertainties that hindered innovation. Meanwhile, Hong Kong officially opened stablecoin license applications on August 1, with its "high and narrow" standards aimed at ensuring a robust and orderly market launch.

A deeper transformation is quietly taking place at the core of traditional finance. JPMorgan Chase has integrated USDC into its credit card rewards system serving 80 million users, while PayPal is settling transactions for over a hundred tokens directly to merchant accounts using stablecoins.

These traditional giants are accelerating the integration of blockchain technology into their core payment processes, signaling the rapid arrival of a new era of global financial infrastructure based on stablecoins.

Market Overview and Growth Highlights

The total market capitalization of stablecoins has reached $266.99 billion, with a weekly increase of $1.776 billion. In terms of market share, USDT continues to maintain its leading position at 61.67%, while USDC ranks second with a market cap of $63.683 billion, accounting for 23.85%.

Blockchain Network Distribution of Top Three Stablecoin Market Values:

1. Ethereum: $133.276 billion

2. Tron: $82.876 billion

3. Solana: $11.418 billion

Top 3 Fastest-Growing Networks of the Week:

1. TON: +17.40% (USDT accounts for 80.52%)

2. Cardano: +11.84% (USDM accounts for 32.05%)

3. Sui: +10.94% (USDC accounts for 59.71%)

Data source: DefiLlama

US Releases Digital Asset Strategy Report: Stablecoins a Priority, DeFi Compliance, and Self-Custody Included in National Strategy

This week, the U.S. digital asset regulatory landscape has seen a significant shift. The White House released the "Digital Asset Strategy Report," a 168-page document covering key topics such as the banking system, stablecoins, tax policies, illicit finance, and strategic reserves. The core message is clear: the U.S. will gradually move away from the "Operation Choke Point 2.0" style of crackdown and pivot towards legislation such as the "GENIUS Act" to promote a dollar-dominant on-chain financial system, supporting compliant infrastructure represented by stablecoins.

There has also been a notable change in the regulatory stance towards DeFi protocols and self-custody tools. The report introduces for the first time a Bank Secrecy Act (BSA) exemption mechanism for "tech publishers," clearly distinguishing them from "financial intermediaries." This legal identity delineation indicates that regulators are willing to include non-custodial development activities within clear compliance boundaries, reducing developer risks and laying the groundwork for the U.S. to reclaim its dominance in on-chain financial technology.

Simultaneously, the SEC has launched "Project Crypto," led by Chairman Paul Atkins, covering three main focuses: establishing clear asset classification standards, safeguarding user self-custody rights, and promoting platform-based crypto applications to integrate services such as staking, lending, and trading under a unified regulatory framework. This shift signifies the SEC's move from enforcement-based regulation to institutional-based regulation, providing platforms with space for compliant business expansion.

To reduce industry uncertainty, the report provides several clear tax guidance points, including accounting and tax treatment suggestions for mining, staking, NFTs, charitable donations, and recommends reviewing the Corporate Alternative Minimum Tax (CAMT) for its applicability in digital asset use to simplify tax barriers for on-chain payments. It emphasizes shifting regulatory focus towards "combatting real risks and incentivizing compliant participation," actively promoting regulatory sandboxes and safe harbor mechanisms to pave the way for compliant innovation.

Stablecoins Integrating into U.S. Banking Infrastructure, Traditional Financial System in a Restructuring Period

Coinbase and JPMorgan Chase have established a partnership to offer three on-chain access paths to their 80+ million customers: using a Chase credit card to purchase crypto assets, exchanging Ultimate Rewards points for Base Layer USDC, and direct bank account linkage. This marks the first time a mainstream bank's rewards system has connected with on-chain assets, signaling the entry of stablecoins into the U.S. consumer financial infrastructure, reducing the operational barriers for traditional users to enter the crypto world.

This partnership has reshaped the boundary between the rewards system and on-chain assets. Chase has transformed its previously closed, low-liquidity credit card points into USDC that can circulate on-chain, creating a "bank-native crypto layer" with programmability and asset interoperability. For users, the path to acquiring crypto assets is increasingly embedded in daily consumption behavior; for banks, this is a high-stickiness way to proactively build an on-chain liquidity network without altering existing financial structures.

Zooming in, JPMorgan Chase's embrace of crypto assets is a microcosm of the U.S. banking system's embrace of stablecoins and on-chain finance. On one hand, top-tier banks are deepening their on-chain presence through proprietary stablecoins and native businesses (such as JPM Coin and on-chain collateralized lending); on the other hand, smaller banks are relying on core system upgrades by technology integrators like FIS and Fiserv, utilizing Circle's provided APIs and custody services to quickly enable access to and settlement of stablecoins. Meanwhile, Visa is empowering banks to issue and manage on-chain assets on a blockchain network through VTAP, driving their transformation from traditional fund intermediaries to asset issuance nodes.

With the implementation of regulatory frameworks and maturation of technical services, banks will transform into the infrastructure gateway for the scalable distribution of on-chain assets. This will lead to an industry-wide restructuring around this role, where card networks expand their underlying token issuance capabilities, technology service providers connect on-chain assets with bank systems, and banks shift from passively joining the network to actively defining the on-chain asset gateway.

PayPal Launches "Pay with Crypto," Crypto Refactoring of the Traditional Quadripartite Payment System

PayPal is restructuring the underlying logic of the global payment network. The newly launched "Pay with Crypto" service supports 100+ mainstream cryptocurrencies and wallets such as Coinbase, MetaMask, and OKX, allowing users to initiate payments with any token, which is instantly converted to PYUSD in the background and settled in dollars with merchants. The fee rate is only 0.99%, much lower than credit card cross-border fees. This "front-end open, back-end anchored" design maintains users' freedom to pay with crypto assets while leveraging stablecoins to ensure the speed and predictability of dollar settlement, enabling on-chain payments to seamlessly integrate into standard business processes for the first time.

Following the integration of global fiat networks through "PayPal World," "Pay with Crypto" incorporates on-chain assets into this unified account system, making cryptocurrencies a standardized payment medium. Its core is to reorganize the payment stack, driving low-friction exchanges and standardized settlements using the PYUSD stablecoin and leveraging the closed-loop management of the account system to integrate fiat and crypto assets into the same clearing path, gradually forming its proprietary "PayPal Settlement Network."

This architecture deconstructs and recombines the traditional quadripartite payment model. Users initiate payments directly from wallets, funds settle instantly, no longer relying on issuer advances and card network authorizations. The existing revenue model based on credit and fees is eroded. PayPal's value capture shifts from interchange fees to in-system service fees and asset management: including instant conversion of crypto assets, stablecoin minting/redemption, on-chain treasury management, and API access. This transformation shifts PayPal from a "participant in the payment network" to a "designer of fund flow paths."

For merchants, this means a steep drop in cross-border fees, instant fund availability, and access to a new market of 650 million cryptocurrency users; for consumers, while losing the credit card's advance payment function, they gain low-cost payments and asset flexibility. Looking to the future, PayPal is centering stablecoins, breaking down the role division of the credit card era, then reorganizing the value chain around the blockchain, attempting to dominate the settlement logic and profit model of the next-generation payment order.

Market Adoption

FIS and Circle Partner to Launch Bank Stablecoin Payment Service

Key Takeaways

· Financial technology giant FIS (Fidelity National Information Services) has partnered with Circle to integrate the USDC stablecoin into the FIS payment hub system;

· This partnership will allow U.S. banks to offer domestic and cross-border payment services based on USDC to customers, expected to go live by the end of the year;

· FIS processes over $10 trillion in transactions annually, and this integration provides Circle with access to a distribution channel to thousands of financial institutions, significantly expanding the potential use cases for USDC.

Why It Matters

· This partnership signifies stablecoins transitioning from "edge innovation" to financial services infrastructure. Following the enactment of U.S. stablecoin legislation and FIS's competitor Fiserv's announcement of their proprietary stablecoin FIUSD, FIS's move further confirms traditional financial giants' recognition of stablecoin value. As a bank technology provider, FIS's participation will significantly accelerate the integration and application of stablecoins in traditional banking systems, paving the way for widespread stablecoin adoption.

JPMorgan Chase and Coinbase Partner to Open the Door to the Crypto World for 80 Million Customers

Key Takeaways

· JPMorgan Chase has reached a groundbreaking partnership with Coinbase to provide a convenient channel for 80 million bank customers to access cryptocurrencies, starting in the fall of 2025, customers can use their Chase credit card directly on Coinbase to purchase crypto assets;

· In 2026, Chase Ultimate Rewards points will, for the first time, support a 100 points to 1 USDC dollar exchange rate, with exchanges taking place on Coinbase's Base chain, converting traditional bank points into on-chain liquidity assets;

· The partnership will enable seamless linking of a Mega Bank account with Coinbase, providing customers with a smooth cryptocurrency purchasing experience and lowering the barrier for the average consumer to enter the crypto world.

Why It Matters

· This partnership marks a shift in the largest U.S. bank's attitude toward cryptocurrency from criticism to active embrace, representing a milestone in the integration of traditional finance and the crypto ecosystem. USDC has been chosen as the crypto reward for rewards points redemption, affirming its status as the "bridge currency" connecting the traditional financial system with the crypto world. The traditional payment model is being progressively "transformed" rather than instantly "disrupted" — financial giants are leveraging the integration of on-chain liquidity and programmability of crypto assets to transform closed, illiquid loyalty systems into open, highly liquid digital assets, positioning themselves for the future financial system. This move will significantly accelerate Base Network's user growth and the mainstream adoption of USDC, impacting the entire crypto ecosystem profoundly.

Macro Trends

Tether Releases Q2 Financial Report: Net Profit of $4.9 Billion, $4 Billion Invested in U.S. Projects

Key Highlights

· The stablecoin issuer Tether International recorded a net profit of $4.9 billion in the second quarter, with $3.1 billion coming from operational profit and $2.6 billion from the appreciation of gold and Bitcoin prices;

· The company holds over $162.5 billion in reserve assets, corresponding to $157.1 billion in liabilities (issued USDT), with excess reserves of $5.4 billion, including a Bitcoin holdings value of $8.9 billion (approximately 83,200 BTC);

· Tether's exposure to U.S. Treasuries exceeds $127 billion, the USDT supply increased by $13 billion this quarter, and the company has already invested around $4 billion in U.S. projects related to AI, renewable energy, and digital communications.

Why It Matters

· With the passage of the GENIUS Act, stablecoins are rapidly integrating into a broader financial infrastructure. As the largest stablecoin issuer, Tether's CEO has indicated the company will comply with new regulations and issue offshore versions of its stablecoin. With a reserve scale of over $162.5 billion and significant holdings of U.S. Treasuries, Tether has become a crucial USD financial tool. The company is channeling profits into key U.S. strategic industries, including XXI Capital Bitcoin hedge fund, Rumble video platform, and crypto wallet development, demonstrating that the stablecoin giant is actively seeking to transform into a compliant financial institution within the regulatory framework while expanding its business into a broader tech and finance realm.

Deloitte: 40% of CFOs in Hundred Billion Dollar Enterprises Plan to Adopt Crypto Payments Investment Within Two Years

Key Highlights

· Deloitte's latest survey shows that 99% of Chief Financial Officers (CFOs) expect to use cryptocurrency long-term for business functions, surveying North American companies with annual revenue of at least $10 billion;

· 23% of CFOs indicate that their finance departments will use cryptocurrency for investment or payments within the next two years, with this percentage nearing 40% in large enterprises with revenue exceeding $100 billion;

· While 43% of CFOs still express concerns about price volatility, 15% of respondents anticipate their finance departments will purchase non-stablecoin cryptocurrency in the next 24 months as part of an investment strategy.

Why It Matters

· Against the backdrop of Trump's directive to establish a strategic Bitcoin reserve and the GENIUS Act providing regulatory clarity, corporate acceptance is gradually rising. At the time of Deloitte's report release, dozens of publicly traded companies have begun to hold reserves in cryptocurrencies such as Bitcoin, Ethereum, and Solana. CFOs of enterprises with revenue over $100 billion are more proactive, with nearly a quarter (24%) stating they will invest in non-stablecoin cryptocurrency in the next two years, indicating a fundamental shift in institutional attitudes towards digital assets. Corporate finance departments are transitioning from observation to concrete action.

New Product Dispatch

Interactive Brokers Considers Issuing Proprietary Stablecoin to Reshape Brokerage Account Fund Flows

Key Highlights

· Interactive Brokers (IBKR) is currently evaluating the feasibility of issuing its own stablecoin, intending to use it for instant client account deposits, asset transfers, and 24/7 settlement to enhance fund flow efficiency;

· The company is exploring two paths: issuing a proprietary stablecoin or supporting third-party stablecoins (such as USDC, PYUSD), with the goal of bridging the gap between brokerage accounts and crypto assets;

· IBKR has 3.87 million customer accounts (32% YoY growth) and its stock price has risen 47% this year. This move is an extension of its digital finance strategy, following its previous partnership with Paxos and the launch of the ForecastEx prediction market platform.

Why It Matters

· Interactive Brokers' foray into the stablecoin space as a traditional brokerage marks the acceleration of digital transformation in financial infrastructure. Its plan to completely change the broker account fund allocation logic from "T+1/T+2" to "near-instant settlement" not only challenges crypto-native platforms like Coinbase but also foreshadows a paradigm shift in clearing systems from "transaction-time-driven" to "account-state-driven." This move demonstrates that large financial institutions are starting to recognize the value of blockchain technology in enhancing fund flow efficiency, reflecting a gradual acceptance of stablecoins into the regulated financial system.

Blockchain Infrastructure Alchemy Upgrades "Cortex Engine," Increasing Stablecoin Transaction Speed by 66%

Key Highlights

· Alchemy introduces the "Cortex Engine" architecture, reducing blockchain API response time from 300-400 milliseconds to less than 50 milliseconds, resulting in a 66% reduction in transaction latency;

· Serving as the "crypto AWS," Alchemy provides infrastructure support for most stablecoin issuers (such as Paxos, Circle), and this upgrade will directly enhance stablecoin transaction speed;

· The new architecture achieves throughput of tens of thousands of requests per second, with a 1000x increase in single blockchain node throughput, nearing the processing capacity of large traditional payment systems;

Why It Matters

· Stablecoin trading volume is now comparable to international payments by Visa and Mastercard, but speed has always been a weak point. Alchemy's upgrade reduces blockchain response time to below 100 milliseconds (the threshold of human perceptible delay is about 200 milliseconds), allowing for the first time a stablecoin payment experience on par with traditional payment systems. As a key infrastructure provider connecting decentralized applications, Alchemy supports major institutions including Coinbase, Stripe, and JPMorgan Chase. This performance boost will impact a broad range of the Web3 ecosystem, removing technological barriers for stablecoins to further expand in the global payment market and accelerating blockchain payment penetration into mainstream markets.

MetaMask Introduces "Stablecoin Earn" Feature, Allowing Users to Earn Interest Directly in the Wallet

Key Highlights

· MetaMask officially launches the "Stablecoin Earn" feature, enabling users to directly deposit mainstream stablecoins like USDT, USDC, DAI, etc., in the wallet frontend;

· This feature is powered by the well-known DeFi protocol Aave, allowing users to automatically earn stablecoin yield through this feature;

· Deposits are not subject to lock-up periods, and users can withdraw their funds at any time, reducing the barrier to entry for DeFi participation.

Why It Matters

· This marks the largest Web3 wallet MetaMask beginning to directly integrate yield products, bringing DeFi functionality to the wallet interface and greatly simplifying the process for ordinary users to participate in DeFi. Through the partnership with Aave, MetaMask ensures both product security and reduces user learning costs, potentially attracting more traditional users to try out crypto asset yield management, driving the mainstream adoption of DeFi.

Routable and Brale Partner to Launch Global Stablecoin Payment System

Key Highlights

· Payment platform Routable has announced a partnership with Brale to integrate stablecoin payments into its existing AP (Accounts Payable) automation system, alongside traditional payment methods such as ACH;

· This partnership enables Routable's customers to access stablecoins issued by Brale, Circle, and Paxos, supporting 19 blockchain networks, including Ethereum, Solana, Base, Canton, and more;

· Enterprises can easily select blockchain networks through API parameters without additional technical integration, enabling payments to over 220 countries and regions supporting over 140 currencies.

Why It Matters

· This partnership signifies the accelerated entry of stablecoins into the realm of enterprise payments, seamlessly integrating blockchain payment functionality with traditional corporate finance software. By supporting multiple chains and various stablecoin issuers, the collaboration between Routable and Brale breaks down barriers between blockchain ecosystems, providing enterprises with flexible choices to achieve instant global payments across borders, demonstrating the significant potential of stablecoins as the foundation for cross-border payment infrastructure.

Cash App Launches Pools Feature, Streamlining Group Payment Processes

Key Highlights

· Cash App officially launches Pools group payment feature, allowing users to create fund pools for group payments, supporting in-app transfers as well as external payments via Apple Pay and Google Pay;

· The new feature addresses the pain point of group fund collection involving 60% of American adults, eliminating the burden of individual fronting, supporting setting target amounts, tracking progress, and real-time understanding of contributions;

· The feature is currently open to some users and will be rolled out to all of its 57 million monthly active users in the coming months, marking the beginning of Cash App's transition to social finance management.

Why It Matters

· The Pools feature aligns with the trend of younger users viewing fund management as a social experience, effectively connecting Cash App's existing banking and payment tool ecosystem. By simplifying the group payment process and integrating mainstream payment methods, Cash App strengthens its position as a comprehensive financial platform while tapping into the vast market of group finance management. This product strategy reflects the industry trend of payment platforms evolving from mere transaction tools to social finance collaboration platforms.

SoFi CEO Announces Crypto Expansion Plan, to Introduce Staking, Lending Services, and Stablecoin

Key Highlights

· Following a strong financial report, SoFi CEO Anthony Noto announced a comprehensive expansion of its crypto business, planning to ramp up hiring and offer customers crypto asset-backed lending and staking services;

· SoFi, as the largest online lender in the U.S., plans to relaunch cryptocurrency spot trading services by the year-end, allowing users to buy, sell, and hold digital tokens such as Bitcoin and Ethereum;

· Noto stated that SoFi's advantage of having a banking license enables it to introduce stablecoins earlier than its competitors, as the OCC (Office of the Comptroller of the Currency) has allowed banks to issue stablecoins, while the regulations required by the GENIUS Act would take 12-18 months to develop.

Why It Matters

· SoFi's crypto expansion signifies the accelerated integration of traditional finance with digital assets, with its banking license advantage potentially giving it a head start in the stablecoin space. As traditional banks like JPMorgan Chase and Bank of America also show interest in blockchain payments and stablecoins, fintech companies are actively seizing market share. SoFi's broad layout embodies the strategic importance the banking sector places on crypto assets, offering users more diversified digital asset services, and also represents a significant trend in the digital transformation of financial services.

Visa Expands Stablecoin Settlement Platform, Adds Support for Stellar, Avalanche, and Three Stablecoins

Key Highlights

· Visa announced that its stablecoin settlement platform will be adding support for PayPal USD (PYUSD) and Global Dollar (USDG) through collaboration with Paxos, while also adding Circle's Euro-pegged stablecoin, EURC;

· The platform's blockchain support has expanded from Ethereum and Solana to include Stellar and Avalanche, enabling settlement of four stablecoins across four blockchains;

· This expansion allows partners to conduct stablecoin settlements in both US Dollar and Euro, reducing friction costs for wallets and developers.

Why It Matters

· As a traditional payment giant, Visa has been exploring USDC settlement since 2020, and this multi-currency, multi-chain platform expansion marks a comprehensive upgrade to its crypto strategy. With payment providers, fintech firms, and banks seeking faster cross-border transaction solutions, stablecoins are gaining widespread adoption. Rubail Birwadker, Visa's Global Head of Product and Partnerships Growth, stated, "When stablecoins are trusted, scalable, and interoperable, they can fundamentally change the way money moves globally." This move will accelerate the adoption of stablecoins in mainstream payment systems, expanding blockchain-based stablecoin payments from the cryptocurrency vertical to the broader global payment market.

Clearpool Launches PayFi Financing Service, Introduces Yield-Bearing Token cpUSD

Key Highlights

· Decentralized credit platform Clearpool has launched a stablecoin credit pool tailored for Payment Finance (PayFi), offering short-term financing solutions to fintech companies involved in cross-border transfers and card transaction processing;

· The newly introduced yield-bearing token cpUSD is backed by PayFi reserves and liquidity stablecoins, with earnings derived from real-world payment flows rather than speculative crypto activities;

· Clearpool has provided over $800 million in stablecoin credit to institutional borrowers, including Jane Street and Banxa, focusing on addressing the liquidity gap caused by settlement time disparities between fiat and stablecoin transactions.

Why It Matters

· Clearpool's new product highlights the central role of stablecoins in the global payment infrastructure. CEO Jakob Kronbichler points out, "What many overlook is that while stablecoins settle instantly, fiat does not, forcing fintech companies to front liquidity to bridge this gap." Especially in slow or costly traditional banking corridors in emerging markets, the PayFi Pool will provide institutions with 1-7 day short-term credit cycles to meet liquidity needs pre-fiat settlement. cpUSD will tie DeFi yields to real-world payment demands, offering holders a stable income source driven by actual payment flows rather than speculative cycles, representing a significant expansion of DeFi into the broader financial services arena.

Capital Allocation

JPMorgan: Coinbase to Receive Around $300 Million Distribution Fee Income from Circle in Q1 2025

Key Takeaways

· JPMorgan's report reveals that Coinbase received approximately $300 million in distribution payments from Circle in Q1 2025, exceeding Circle's own $230 million in net revenue;

· Coinbase holds $1.6 billion worth of Circle shares, but the larger value comes from the USDC ecosystem: $13 billion in-platform USDC balance generated $125 million in revenue, while off-platform Reserve Fund revenue sharing brought in $170 million, nearly 100% profit margin;

· JPMorgan estimates the economic value related to Circle for Coinbase shareholders to be as high as $55-60 billion, suggesting the market may be undervaluing the strategic importance of the USDC ecosystem.

Why It Matters

· This reveals that mainstream crypto exchanges are maturing their business models to profit from the stablecoin ecosystem. Coinbase, in its role as a USDC distributor, not only brings in direct high-profit revenue but also drives user growth, with incentives provided by Circle enabling Coinbase to attract customers at zero or negative cost. This case illustrates that stablecoins are not just a medium of exchange but are becoming a core revenue stream for crypto platforms, indicating that the stablecoin economy will be a key valuation driver for crypto enterprises.

Yuan Coin Technology Raises $40 Million in Funding, Led by Zhongan International and Others

· Stablecoin infrastructure company Yuan Coin Technology has completed a nearly $40 million Series A2 funding round, led by Zhongan International, Zhongwan International, Bright Success Investment, and Hivemind Capital, with follow-on investment from Sequoia China;

· The company has signed a strategic cooperation memorandum with Zhongan Bank to explore the application of stablecoins in compliant financial services, having previously participated in a stablecoin sandbox trial by the Hong Kong Monetary Authority;

· Yuan Coin Technology had previously launched an HKD-pegged stablecoin and completed a $7.8 million Series A1 funding round in September last year led by Sequoia China, demonstrating its ability to secure consecutive funding rounds.

Why It Matters

· This funding round reflects Hong Kong's active efforts to build a compliant stablecoin ecosystem, with participation from institutions like Zhongan Bank showing an accelerated integration of traditional finance and blockchain technology. As a participant in the Hong Kong Monetary Authority's trial, Yuan Coin Technology's HKD-pegged stablecoin is poised to become a key financial infrastructure in Hong Kong's drive to establish a regulatory framework for virtual assets, strategically positioning Hong Kong to develop into a major cryptocurrency hub in Asia.

Zodia Markets Raises $18.25 Million in Series A Funding Led by Circle Ventures to Expand Stablecoin Payment Infrastructure

Key Highlights

· Zodia Markets has completed an $18.25 million Series A funding round led by Pharsalus Capital, with participation from Circle Ventures, to accelerate international expansion and stablecoin payment solutions;

· Since its establishment in 2021, the company has received support from Standard Chartered Bank's innovation arm, SC Ventures, and Asia's leading digital asset firm OSL Group, establishing a leading position in cross-border stablecoin liquidity;

· Zodia Markets currently supports over 20 fiat currencies and more than 70 digital assets (including USD and non-USD stablecoins), focusing on providing real-time wholesale trading, settlement, and cross-border fund transfer services to institutions.

Why It Matters

· This funding underscores the deepening integration trend between traditional banks and crypto infrastructure. As a digital asset platform supported by Standard Chartered Bank, Zodia Markets is reshaping interbank cross-border payment models through stablecoins, with Circle Ventures' investment further validating its strategic position in institutional-grade stablecoin infrastructure. The platform combines traditional forex flows with real-time stablecoin settlements, representing global banks beginning to view stablecoins as part of their core payment infrastructure, driving the digital transformation of wholesale banking operations.

Stable Raises $28 Million in Seed Funding, Developing USDT-based Payment Blockchain

Key Highlights

· Stable has completed a $28 million seed funding round led by Bitfinex and Hack VC, with participation from Franklin Templeton, Castle Island Ventures, KuCoin Ventures, and others;

· The blockchain project will use USDT as the fuel token, aiming to create a fast, low-cost, and stable digital payment infrastructure;

· Stable has entered the stablecoin blockchain race, joining projects like Plasma, which recently raised $373 million for its stablecoin network.

Why It Matters

· The stablecoin market has grown to a $273 billion market cap, with USDT and USDC leading the pack, and the demand for blockchain infrastructure optimized for stablecoin payments is rising. Stable, backed by Tether CEO Paolo Ardoino and other angel investors, demonstrates the industry's strong interest in blockchain solutions designed specifically for stablecoin transactions. The participation of traditional financial institution Franklin Templeton shows that institutional capital is rapidly entering the stablecoin infrastructure space, further driving the use of stablecoins in global payment and settlement systems.

Regulatory Compliance

Hong Kong's Stablecoin Regulation in Effect, Dozens of Institutions Express Intent to Apply for License

Key Highlights

· The "Stablecoin Regulation" came into effect on August 1, with the HKMA opening the application window until September 30, and the first license expected to be issued early next year;

· The CEO of Standard Chartered Hong Kong, Greater China, and North Asia confirmed that the group is studying the documentation and exploring use cases, with the aim of submitting a stablecoin license application as soon as possible;

· According to incomplete statistics, dozens of institutions have expressed their intention to apply for a license, including JD CoinTech, CircleCoin Innovation, Standard Chartered Bank, ANNI Group, Hong Kong Telecom, and others;

· Meanwhile, more local banks, tech companies, and Web3 teams are making further preparations around clearing systems, custody mechanisms, and payment interfaces.

Why It Matters

· The Hong Kong Monetary Authority has emphasized that the threshold for stablecoin issuance is very high. Initially, only a few licenses will be issued. Licensed institutions must meet the three requirements of compliance, specificity, and sustainability. This move signifies Hong Kong's transition from sandbox testing to a formal regulatory framework, attracting traditional banks, tech companies, and Web3 teams to establish stablecoin businesses, which is strategically significant for Hong Kong to consolidate its position as an international financial center.

SEC Chairman Atkins: "Most Crypto Assets Are Not Securities"

Key Highlights

· SEC Chairman Paul Atkins announced the launch of the "Project Crypto Initiative," aimed at swiftly implementing the new crypto policy urged by former President Donald Trump by modernizing securities rules to accommodate crypto assets, clearly rebutting former SEC Chairman Gensler's views;

· Atkins emphasized that "most crypto assets are not securities" and instructed SEC staff to draft clear and simple rules for the issuance, custody, and trading of crypto assets;

· The SEC will provide "tailored disclosure requirements, exemptions, and safe harbors" for crypto securities, including ICOs, airdrops, and network rewards, and support self-custody wallets and "super apps" one-stop services.

Why It Matters

· This marks a significant shift in the U.S. crypto regulatory philosophy. Atkins explicitly supports Trump's vision of establishing a "crypto golden age," which will attract crypto companies that had fled the U.S. back. The SEC's new policy will allow broker-dealers to offer multiple asset trading on a single platform without multiple licenses, while providing protection for software developers. This major policy shift signals a fundamental change in the landscape of U.S. crypto regulation, potentially bringing certainty to the market and fostering innovation.

Germany's AllUnity Launches EURAU, First Euro Stablecoin Under BaFin Regulation

Key Highlights

· EURAU, launched by AllUnity, a joint venture of DWS, Galaxy, and Flow Traders, has become Germany's first Euro stablecoin compliant with the MiCAR regulations, receiving an electronic money license from Germany's Federal Financial Supervisory Authority (BaFin);

· EURAU, issued as an Ethereum ERC-20 token, with the European Banking Federation as the reserve custodian, primarily targets financial institutions, fintech companies, and corporate clients requiring regulated, real-time cross-border Euro payments.

· The stablecoin will be listed on Bullish Europe, a digital asset exchange regulated by BaFin. The initial trading pairs will include BTC/EURAU and USDC/EURAU, with market-making services provided by Flow Traders.

Why It Matters

· The launch of EURAU represents a significant milestone in the European regulated stablecoin market. With support from prominent institutions such as BitGo, Metzler Bank, and Fireblocks, this stablecoin showcases the widespread trend of integrating regulated compliant stablecoins into the European financial infrastructure. AllUnity CEO Alexander Höptner referred to this as a crucial step towards digital European "financial sovereignty," demonstrating the EU's move towards establishing a euro-denominated digital payment system independent of the US dollar stablecoins, providing European financial institutions with locally compliant payment solutions through the MiCAR framework.

The Bank of Korea Establishes Crypto Asset Department in Response to Local Stablecoin Development Trend

Key Takeaways

· The Bank of Korea (BOK) has created a new virtual asset department responsible for overseeing the crypto market and leading internal discussions on the Korean won stablecoin. This department is housed under the Financial Payments System Bureau;

· The central bank has also renamed the "Digital Currency Research Team" to the "Digital Currency Team," signaling a shift from theoretical exploration to more active digital currency practices;

· The newly elected South Korean President Yoon Suk-yeol has pledged to promote the development of the local currency stablecoin market to prevent capital outflow, with ruling party lawmakers proposing a bill to establish a regulatory framework for the Korean won stablecoin.

Why It Matters

· The Bank of Korea's move signals a shift in central banks' global attitudes towards stablecoins, from cautious to active participation. Against the backdrop of the US government's support for the USD stablecoin, the South Korean government and financial institutions are swiftly acting to prevent capital outflow and dollarization. South Korea's decision to pause its CBDC project and focus on stablecoins reflects how Asian financial centers are seeking a balance between central bank digital currencies and private sector stablecoins, accelerating the formation of the Asian stablecoin ecosystem.

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