Original Title: "Cobo Stablecoin Weekly Report 22 | Google Joins the Payment Chain, Stablecoins Enter the BaaS Moment"

Welcome to the 22nd edition of the Stablecoin Weekly Report.

As stablecoins continue to "eat the world," the focus of the value chain is also shifting—from the issuance side to the distribution side. An apparent trend is the rise of the White-label model, where front-end platforms focus on traffic and users, while the underlying infrastructure is provided by professional issuers offering reserve, auditing, and compliance services, known as "Stablecoin as a Service" (STaaS). This means that as the issuance barriers lower, differentiation will rely more on distribution capabilities and branding rather than the asset's inherent trustworthiness. This implies that the future market landscape may also change, moving from a few giants' monopoly to a diverse ecosystem of medium-scale players (10–250 billion USD).

A similar logic is unfolding in card schemes and banks. The card issuance business is gradually becoming API-driven and modular, allowing more businesses to quickly embed payment processes. The revenue model is shifting from interest and annual fees to data accumulation and programmability.

Payment blockchains are constrained by the "impossible triangle" dilemma of privacy, compliance, and performance. Google's developed GCUL caters to the needs of financial institutions but at the expense of openness. Coupled with the potential conflict of interest between its advertising and payment network, the potential of becoming a public infrastructure for stablecoin payments remains questionable.

Market Overview and Growth Highlights

The total stablecoin market cap has reached $282.841 billion, with a weekly increase of $6.522 billion. In terms of market dominance, USDT continues to hold a leading position with a share of 59.55%, while USDC ranks second, with a market cap of $70.375 billion, representing 24.88%.

Blockchain Network Distribution

Top Three Stablecoin Market Cap Networks:

· Ethereum: $148.551 billion

· Tron: $81.617 billion

· Solana: $12.178 billion

Top 3 Networks with the Fastest Weekly Growth:

· M By M^0 (M): +11.32%

· Dai (DAI): +9.99%

· USD Coin (USDC): +5.57%

Data Source: DefiLlama

Decoupling of Brand and Issuance, the Future of Stablecoins as a Service (STaaS)

As stablecoin issuance becomes increasingly commoditized, the focus of the value chain has shifted from stablecoin "issuance" to stablecoin "distribution." If the first half was dominated by institutional reserve and minting activities, the second half depends on who can get stablecoins into the hands of more users and merchants.

With compliance and technological maturity, the use cases for stablecoins have expanded beyond exchanges to encompass corporate treasury, capital markets, and consumer networks. Card networks and issuing banks are driving their adoption into retail payment systems. Stablecoins have transitioned from being cash-out tools to circulating long-term within networks, significantly extending their lifecycle and potentially bridging on-chain and off-chain economies.

In business competition, distribution capability often outweighs the product itself, and stablecoins are no exception. The success of stablecoins depends on their widespread acceptance, and the white-label model is becoming more prevalent. Platforms can leverage stablecoin capabilities within regulatory frameworks without building their own reserves or compliance systems, optimizing payment and settlement processes. Cases like Metamask and Bridge, PayPal and Paxos demonstrate that user relationships and use cases are controlled by the platform, while reserve management and compliance audits are outsourced to the issuer. Even giants like PayPal can distribute interest-bearing stablecoins without issuing them directly. This "decoupling of brand and issuance" model embeds stablecoin functionality in a more extensive payment and settlement process in a service-oriented manner.

In traditional finance, banks abstract capabilities such as deposits, lending, and issuing cards into APIs, known as BaaS (Banking-as-a-Service). In the era of stablecoins, this logic has evolved into STaaS (Stablecoin-as-a-Service), abstracting issuance, reserve management, auditing, and compliance into underlying services handled by professional institutions, allowing platforms to focus on users and use cases.

In the evolution of stablecoin infrastructure, along with "issuance as a service," we have witnessed a new model—Card Issuing-as-a-Service. The traditional four-party model's profitability logic based on interest and interchange fees is gradually fading in the face of on-chain payments. Banks are modularizing licenses, deposits, and credit limits, exporting them to fintech companies through APIs, integrating deeply with stablecoins' programmability, into processes such as payroll and freelancer settlements. The advantage of this model no longer comes from credit expansion but from migration barriers, data accumulation, and programmability. When payment and enterprise operations are closely integrated, the stablecoin infrastructure gains greater resilience and growth potential, thereby creating a new moat.

Google Cloud Developing GCUL, a Permissioned Payment Chain for Financial Institutions

According to Rich Widmann, Head of Google Cloud Web3 Business Strategy, as revealed on LinkedIn, Google is developing a permissioned blockchain called Universal Ledger (GCUL) aimed at financial institutions. This blockchain will support on-chain bank funds, cross-border settlement, and programmable payments.

Google's core assumption in entering the blockchain space is that banks must transform under the wave of digital currencies, transitioning from traditional settlement nodes to on-chain asset issuers and distributors. GCUL offers embedded compliance, Python smart contracts, and API access, allowing banks to migrate deposits, securities, and settlement processes to the blockchain, taking active control of fund flows. An article on Google Cloud's website titled "Beyond Stablecoins: The Evolution of Digital Currency" states: "The fragmentation of the payment system and inefficient settlement could cause $2.8 trillion in losses by 2030, and the growth of stablecoins has validated market demand."

Unlike Stripe's closed-loop ecosystem, Google aims to provide neutral underlying infrastructure. It has already conducted a tokenization pilot with the Chicago Mercantile Exchange (CME), targeting institutions that do not have their own blockchain but wish to enter the crypto payment space. As Rich Widmann, Head of Google Cloud Web3, puts it, "Tether won't use Circle's chain, and Adyen won't necessarily use Stripe's chain, but any institution can develop payment services on GCUL." Google hopes to attract multiple participants through its "unbundled" infrastructure.

However, by taking the permissioned route, GCUL meets the urgent needs of financial institutions for privacy, compliance, and throughput but sacrifices the openness of a public blockchain. Considering Google's existing interests in cloud, advertising, search, and browsers, the market is concerned that it may struggle to remain fully neutral between its advertising and payment networks, casting doubt on whether GCUL can become the "public foundational layer" for stablecoin payments.

What is certain is that the assumption that "public chain protocols like Ethereum and Solana will capture most of the value" may no longer hold true. If the next $2 trillion of stablecoin inflows flow to branded chains like Stripe's Tempo, Circle's Arc, or Google's GCUL, the value capture of public chains like Ethereum (ETH) and Solana (SOL) will face serious challenges.

Regulatory Compliance

Japan's Monex Group Considers Issuing Yen Stablecoin, Chairman Says "Falling Behind If We Don't Do It"

Key Highlights:

· Tokyo-listed financial services company Monex Group is considering issuing a Japanese Yen stablecoin, with Chairman Oki Matsumoto stating that "issuing a stablecoin requires a significant amount of infrastructure and capital, but if we don't get involved, we will be left behind"

· The stablecoin plan is backed by assets such as Japanese government bonds and can be exchanged 1:1 for the Japanese Yen, primarily for international remittances and corporate settlements. It will be promoted through the group's Coincheck exchange and Monex securities brokerage business

· Matsumoto revealed that Monex is considering acquiring a European crypto-related company, with final negotiations currently underway and an announcement potentially coming in "a few days," expanding its presence in the Western markets

Why It Matters:

Monex Group's consideration of issuing a Japanese Yen stablecoin signifies a rapidly evolving crypto regulatory environment in Japan. The Japanese Financial Services Agency (FSA) plans to approve the issuance of a Japanese Yen stablecoin as early as this autumn, marking Japan's first acceptance of a domestically anchored digital currency. Following the lifting of the ban on foreign stablecoins in 2023 and the approval of USDC usage in Japan in March this year, the entry of financial giants into the stablecoin market will accelerate Japan's competitiveness in the Asian digital asset space, providing a digital option for the Yen in international settlements.

Circle, Paxos Collaborate with Bluprynt on Pilot of Origin Verification Technology to Explore Stablecoin Payment Traceability and Authenticity Verification

Key Highlights:

· Stablecoin giants Circle and Paxos are partnering with fintech startup Bluprynt to pilot "Origin Verification" technology, which can prevent stablecoin counterfeiting and real-time identity verification of issuers

· This technology leverages cryptography and blockchain to provide token traceability, allowing regulators and investors to confirm if tokens are issued by the claimed issuer, effectively preventing counterfeit tokens and impersonation attacks

· With the increase in stablecoin issuers being pushed by the GENIUS Act, validating the "true identity" of tokens has become a critical security issue, with blockchain analytics firm Chainalysis listing counterfeiting and impersonation as common stablecoin risks

Why It Matters:

This technology transforms compliance into a technical product rather than just a legal document, signaling the maturation of the digital asset industry. As stablecoin applications expand, a trust mechanism based on technology rather than a brand becomes particularly crucial. This innovation paves the way for widespread stablecoin adoption, while meeting regulatory requirements, reducing systemic risks, and providing reliable verification tools for auditors, law enforcement agencies, and investors.

CFTC: Departed U.S. Crypto Firms Can Act as "Foreign Board of Trade" to Return to U.S. Market

Key Points:

· The U.S. Commodity Futures Trading Commission (CFTC) on Thursday issued a guidance notice stating that departed crypto firms can directly serve U.S. customers by registering as a "Foreign Board of Trade" (FBOT)

· Acting Chair Caroline Pham described this move as part of the "Crypto Sprint" initiative, aimed at providing a pathway for "U.S. firms that were forced to establish exchanges overseas to return to the U.S. market"

· The CFTC is receiving an increasing number of FBOT registration applications, clarifying that eligible foreign firms do not need to register as a U.S. Designated Contract Market (DCM) but must be subject to robust regulation in their home country

Why It Matters:

· This policy "reminder" reflects the CFTC's crypto-friendly pivot under the Trump administration. Amid regulatory uncertainty that led to several exchanges exiting the U.S. market, the CFTC is actively rebuilding bridges to meet regulatory requirements while offering more trading options to U.S. consumers. Pham referred to this as "another deliverable to President Trump," implying it is part of a broader regulatory easing. With former CFTC Commissioner Brian Quintenz, nominated by Trump, set to resume confirmation proceedings and Commissioner Johnson stepping down next week, the CFTC's crypto-friendly stance may further solidify, creating a clearer path for international crypto exchanges to re-enter the U.S. market.

New Product Express

Aave Launches RWA Market Horizon, Connecting Institutional Tokenized Assets with DeFi

Key Points:

· Aave Labs has launched the Horizon Market, bringing together leading institutions such as VanEck, Circle, Ripple, WisdomTree, Superstate, and Centrifuge, connecting institutional tokenized assets with DeFi on Ethereum

· The initial collateral lined up includes Superstate's USCC and USTB, as well as Centrifuge's JRTSY and JAAA, with Circle's USYC set to join; stablecoin supply options include USDC, RLUSD, and GHO

· Horizon adopts Chainlink SmartData technology (first deploying NAVLink) to provide the accurate net asset value of tokenized real-world assets as collateral, enabling real-time overcollateralized stablecoin loans within a compliant DeFi framework

Why It Matters:

· Horizon represents the convergence of DeFi and traditional finance by incorporating institutional-grade assets into decentralized lending protocols, unlocking trillion-dollar DeFi liquidity for real-world assets. This platform leverages an institutional-grade compliance framework while supporting permissionless stablecoin issuance, meeting regulatory requirements for institutional investors while preserving the core open nature of DeFi. Llama Risk and Chaos Labs provide risk analysis support to ensure platform security. This marks DeFi's formal entry into the institutional market, creating a new paradigm for on-chain liquidity and capital efficiency for traditional assets.

Anchorage Digital Establishes Venture Arm to Support Early-Stage On-Chain Protocols, Becoming a Federally Chartered Stablecoin Issuer

Key Highlights:

· Crypto custody unicorn Anchorage Digital launches Anchorage Digital Ventures, focusing on investing in early-stage on-chain protocols with a particular emphasis on Bitcoin DeFi, real-world assets, and decentralized identity infrastructure projects

· Previously, Anchorage Digital Bank announced becoming the first federally chartered stablecoin issuer, providing a "one-stop" solution that allows institutions to launch their own branded stablecoins without dealing with technical complexities

· The platform integrates funding, strategic guidance, and institutional onboarding pathways to provide full-process support to startup teams from product design to market entry, while committing to unlimited minting capability and instant network access

Why It Matters:

· Anchorage's strategy showcases the trend of crypto infrastructure companies expanding across the full spectrum of financial services. As the first crypto firm in the U.S. to obtain a federal bank charter, its GENIUS compliant stablecoin issuance service synergizes with the venture arm, enabling both the incubation of innovative projects and the provision of compliant channels and institutional-grade use cases for these projects. This business model will accelerate institutional adoption of blockchain technology while ensuring that emerging protocols meet regulatory expectations from their inception.

Ant Group and Standard Chartered Test Bank-to-Wallet Payment Solution

Key Takeaways:

· Ant Group and Standard Chartered are piloting a bank-to-digital-wallet payment solution based on the Swift system, with the first batch of transaction tests completed using the ISO 20022 financial messaging standard

· This solution leverages Ant's Alipay+ Global Wallet Gateway service, connecting to over 11,500 financial institutions in more than 200 countries and regions covered by the Swift network, and integrating with 36 global digital wallets within the Alipay+ ecosystem serving 1.7 billion user accounts

· PYMNTS Intelligence research found that 42% of consumers consider digital wallets their preferred method for cross-border remittances, surpassing traditional bank account transfers and remittance services, with this figure rising to 44% among U.S. consumers

Why It Matters:

· This partnership reflects the trend of migration toward digital wallets in the cross-border payment realm. The connection between the Swift system and Alipay+ bridges the gap between traditional finance and emerging payment networks, providing banks with a strategy to tackle fintech challenges. Studies show that 62% of U.S. and U.K. banks plan to innovate cross-border payments through collaboration with fintech firms, reshaping the global payment landscape. This integration will particularly transform the global payment landscape, especially in rapidly growing Asian markets, offering consumers and businesses a faster and more flexible international payment experience.

Tether to Issue Bitcoin-native USDT Stablecoin on RGB

Key Takeaways:

· Tether has announced plans to issue USDT on the RGB protocol. RGB is a smart contract and asset issuance protocol anchored to Bitcoin and compatible with the Lightning Network, expanding the world's largest stablecoin's native support on the Bitcoin network

· RGB allows issuers to mint and transfer crypto assets pegged to Bitcoin transactions but validated off-chain, reducing on-chain data usage while inheriting Bitcoin's security, enabling nearly instant settlements on the Lightning Network, and enhancing privacy

· USDT currently circulates mainly on the Tron and Ethereum networks, with a total supply exceeding $167 billion; Tether is gradually phasing out support on less scalable chains like Omni, EOS, and Algorand, planning to fully close support on these networks by September

Why It Matters:

· This integration signifies Tether's deepening strategic investment in the Bitcoin ecosystem. The company holds over 100,000 bitcoins and has invested $2 billion in Latin America to build 15 mining farms, with plans to become the world's largest Bitcoin miner by the end of 2025. By providing a Bitcoin-native stablecoin payment channel through the RGB protocol, USDT will be able to seamlessly integrate with Lightning Network wallets, merchant tools, and exchanges, offering users a faster, cheaper, and more private transaction experience. This also aligns with Tether's broader strategy of expanding into regulated markets, including a recent stake in the Spanish exchange Bit2Me to establish a European foothold. This move strengthens the deep integration of stablecoins with Bitcoin infrastructure, providing a more efficient alternative for cross-border payments and remittances.

Market Adoption

Vercel's AI Frontend Tool v0 Accepts USDC for Point Purchase

Key Takeaways:

· The U.S.-based cloud development platform company Vercel's AI frontend development tool v0 has now started accepting user purchases of v0 points using the USDC stablecoin

· v0 is positioned as a full-stack development experience platform, created by website deployment and frontend development service provider Vercel

· This move signals the exploration of cryptocurrency payment options in the development tool space, providing developers with more payment channels

Why It Matters:

· Development tool subscription services accepting USDC payments reflect stablecoins expanding beyond pure crypto applications into the SaaS and developer services sector. As a prominent player in the frontend development space, Vercel's support for USDC may drive more tech companies to adopt crypto payments, while offering international developers an alternative to bypass traditional payment restrictions. This trend indicates that stablecoins are gradually integrating into the business models of software services, lowering the barrier for cross-border payments.

Mastercard Partners with Circle to Enable Stablecoin Settlements in EEMEA Region

Key Takeaways:

· Mastercard has partnered with Circle, allowing acquirers in the Europe, the Middle East, and Africa (EEMEA) region to settle using USDC and EURC stablecoins for merchant payments, facilitating digital trade in emerging markets

· Arab Financial Services and Eazy Financial Services have become the first institutions to adopt this solution, stating that the new functionality has reduced friction in high-volume settlements, providing a faster, more secure payment solution

· Circle reported that as of June 30, USDC's circulation had surged by 90% year-on-year to reach $613 billion, growing further by 6.4% to $652 billion as of August 10, capturing a 28% market share in fiat-backed stablecoins, a 595 basis point increase year-on-year

Why It Matters:

· This partnership signifies the formal entry of stablecoin settlements into the core infrastructure of the global payment network. As a traditional payment giant, Mastercard is applying its secure compliance experience to the stablecoin space, providing institutional-grade endorsement for USDC and EURC. This integration not only expands the existing crypto card solution collaboration between the two companies but also positions stablecoins as a foundational tool for everyday financial activities. As the demand for dollar and euro payments in emerging markets like the Middle East and Africa grows, this solution will simplify cross-border transactions, creating new opportunities for financial inclusion and business development in these regions.

Fintech Giant Finastra Introduces USDC Settlement for $5 Trillion Global Cross-Border Payments

Key Highlights:

· London-based fintech provider Finastra announced the connection of its payment platform to Circle's USDC stablecoin, enabling banks to settle cross-border transfers using USDC

· The integration will start with Finastra's Global PAYplus (GPP) system, which processes over $5 trillion in daily cross-border payment flows, offering round-the-clock, near-instant settlement through blockchain

· By achieving USDC settlement while retaining fiat instructions, banks can reduce reliance on costly, slow correspondent banking networks, innovate without building independent payment processing infrastructure

Why It Matters:

· This move marks the expansion of stablecoins from the crypto industry into the mainstream financial system. With payment giants like Stripe and PayPal having established their own stablecoin infrastructure, Finastra's adoption of USDC will accelerate institutional adoption. Coinbase predicts that the stablecoin market will grow from the current $270 billion to $12 trillion by 2028, and this financial infrastructure integration will drive the convergence of blockchain technology with traditional banking systems, bringing revolutionary changes to international payments.

Venezuelan Inflation and Currency Collapse Drive Surge in Cryptocurrency Adoption

Key Takeaways:

· From small family stores to large retail chains, Venezuelan businesses nationwide are now accepting cryptocurrency payments through platforms like Binance and Airtm. Some enterprises are even using stablecoins to pay employee salaries, and universities have started offering courses in digital assets.

· Venezuela ranks 13th globally in cryptocurrency adoption in the 2024 Chainalysis Cryptocurrency Adoption Index report, with a 110% surge in usage within a year. With the bolivar currency devaluing over 70% since the government ceased intervention in October last year, and a 229% inflation rate in May, citizens are turning to crypto assets for wealth preservation.

· Cryptocurrency remittances have become a vital lifeline for Venezuelans, with digital assets accounting for 9% (around $4.61 billion) of the $54 billion total remittances in 2023. Families are increasingly relying on cryptocurrency rather than traditional high-cost and severely delayed services like Western Union.

Why It Matters:

· The Venezuelan case demonstrates the practical value of cryptocurrency in an environment of hyperinflation and currency collapse. Faced with a currency crisis, forex shortages, and difficulties in opening bank accounts, ordinary people are forced to seek alternative financial tools to protect their assets. Despite obstacles such as U.S. sanctions and connectivity issues, the crypto ecosystem has shown strong resilience, becoming a core part of the daily economy. This widespread adoption pattern could serve as a blueprint for other countries facing similar economic challenges, while also highlighting the practical application of stablecoins as a store of value and medium of exchange in high-inflation environments.

Gemini and Ripple Partner to Launch XRP Rewards Credit Card

Key Takeaways:

· Cryptocurrency exchange Gemini has partnered with Ripple to launch an XRP rewards credit card. Issued by WebBank on the Mastercard network, the card offers 4% XRP cashback on gas, electric vehicle charging, and ride-sharing, 3% on dining, 2% on groceries, 1% on other purchases, and up to 10% cashback at select merchants.

· This card supports XRP and Ripple's USD stablecoin, RLUSD. After its release, Gemini surpassed Coinbase in the U.S. Apple App Store's finance category rankings, securing the 16th and 20th spots, respectively, even though Gemini's daily trading volume ($382 million) is only about a third of Coinbase's ($45.4 billion).

· Gemini is preparing for an IPO, with its first-half 2025 financial report showing revenue of $67.9 million and a net loss of $282.5 million. While revenue has increased compared to the same period last year, the loss has widened.

Why It Matters:

· This credit card marks further integration of cryptocurrency into everyday consumer scenarios, creating a low barrier to entry for non-crypto users. The product has successfully driven a surge in Gemini app downloads, reflecting the accelerating mainstream trend of the cryptocurrency industry since the Trump administration took office. This move is both a strategic expansion of Gemini's business lines ahead of its IPO and demonstrates the industry's transition from speculation to practical payment tools, as well as the new competitive landscape where crypto companies vie for users through traditional financial product forms.

JPMorgan Chase becomes the first third-party custodian to join the JPMorgan blockchain debt platform

Key Takeaways:

· JPMorgan Chase has become the first financial institution to provide third-party custody services on the JPMorgan Chase Digital Debt Service (DDS) blockchain platform, marking a milestone in the application of blockchain technology in institutional bond custody.

· This partnership enables JPMorgan Chase to provide custody services for debt instruments issued, settled, and managed through the JPMorgan Chase blockchain, supporting precise-time settlement (including same-day settlement), automated life cycle management, and smart contract-enabled corporate actions simplification.

· JPMorgan Chase's asset management division has seamlessly executed a $1 billion commercial paper transaction on-chain as a test, validating the feasibility of this technology.

Why It Matters:

· This partnership signifies a shift for financial giants from blockchain pilot projects to actual large-scale deployments in traditional capital markets, bringing operational risk reduction, faster settlement speeds, and cost efficiencies to the bond market. As a global financial behemoth managing around $4.7 trillion in assets and custodizing $46.6 trillion in assets, JPMorgan Chase's involvement sets a precedent for other custodians and banks to adopt blockchain technology, confirming the evolving role of custodians in supporting new digital asset classes.

Arrive AI Announces Plans to Pay Employees and Suppliers in Bitcoin, Plans to Issue Own Token

Key Takeaways:

· Logistics company Arrive AI has announced a Bitcoin payment plan, allowing employees, suppliers, and customers to choose to receive cryptocurrency instead of USD. CEO Dan O'Toole will be the first employee of the company to adopt this scheme.

· The company plans to issue a proprietary token for paying employees, settling supplier contracts, and streamlining transactions within the delivery network, aiming to enhance transparency, speed, and efficiency

· Arrive AI is actively expanding, planning to double its workforce, with a focus on hiring AI scientists, software engineers, and product developers, emphasizing the company's "AI-first" operational strategy

Why It Matters:

· Arrive AI's crypto payment plan showcases the trend of integrating blockchain technology with logistics AI. By issuing a proprietary token, the company can not only streamline cross-border payments but also provide opportunities for employees and partners to participate in platform growth. Unlike payment giants like Mastercard focusing on stablecoins, Arrive directly adopts Bitcoin for payroll, demonstrating the increasing confidence of enterprises in cryptocurrency as a practical payment tool. This may drive the application of cryptocurrency in daily business transactions from speculation to utility.

Square Reveals Public Product Roadmap, Introduces Bitcoin Payments, Week 1 Loans, and Self-Service Terminals

Key Highlights:

· Square announces its public product roadmap, planning to launch a Bitcoin payment system, including a Bitcoin wallet and a feature to automatically convert some credit card sales into Bitcoin

· On the financial services front, Square will allow merchants to apply for loans in the first week of using its payment processing service, without the need for preapproval to apply for credit cards

· New features for the restaurant industry include package options, self-service terminals, centralized cross-location menu management, automatic credit card surcharging, and enhanced back-office and reporting tools

Why It Matters:

· Square's public roadmap signals its strategic shift from a payment processor to a comprehensive business technology platform. The Bitcoin payment feature will make Square a bridge connecting traditional business with the crypto economy, while the Week 1 loan service directly challenges the traditional banking industry's lengthy credit approval process. These moves not only lower the financing threshold for small businesses but also demonstrate Block's long-term bet on Bitcoin mainstream adoption, potentially deeply integrating crypto assets into everyday business operations.

Macro Trends

US Stablecoin Bill Spurs EU Digital Euro Strategy Repositioning

Key Takeaways:

· The EU is reconsidering its digital euro plans due to the U.S. "GENIUS Act," and may consider issuing it on a public chain like Ethereum or Solana instead of a private chain. This marks a significant shift for Europe, which is strict on cash transactions and supportive of CBDCs.

· A senior ECB official has warned that unregulated stablecoins could weaken the European banking system, threaten financial stability, and even lead to "geopolitical dependency." The ECB President has also cautioned that stablecoins could undermine the central bank's ability to influence the economy through monetary policy.

· The EU faces a dilemma in designing the digital euro: it needs to be attractive enough for people to choose it over USD stablecoins but not so attractive that users abandon bank deposits. Economist Luis Garicano described the ECB's position as "we are afraid of stablecoins, but we also don't want to give CBDCs too much of an advantage."

Why It Matters:

The EU's strong reaction to U.S. stablecoins could strengthen the practical impact of the GENIUS Act. The blockchain dollar has put the EU in a predicament, forcing it to make difficult decisions on the positioning of a central bank digital currency (part stablecoin, part CBDC). This demonstrates the true power of blockchain technology. While Trump's claim that stablecoins will significantly expand the dollar's dominance may not be entirely credible, Europe's strong reaction to this threat has revealed the scale of the threatened interests.

BIS Survey: One-Third of Central Banks Accelerating CBDC Development Due to Stablecoins

Key Takeaways:

· The BIS 2024 Central Bank Digital Currency survey shows that one-third of central banks are accelerating CBDC research due to stablecoin and crypto asset developments. The European Central Bank has repeatedly cited the U.S.'s expansionary stablecoin policy as a pressing reason for the digital euro.

· Overall CBDC research has slightly decreased, from 94% in 2023 to 91% in 2024, with emerging markets experiencing a more pronounced decrease. "Research work" includes research, pilot projects, or advancing production plans.

· 45% of central banks have established legislation on stablecoins and cryptocurrencies, with another 22% in the process, indicating that soon two-thirds of economies will have established relevant regulatory frameworks, with around 80% opting for dedicated legislation rather than retrofitting existing regulations.

Why It Matters:

· The central bank's response to stablecoins indicates intensified competition between public and private digital currencies, with regulatory bodies around the world shifting from observation to action. Although stablecoin usage is still limited in most regions, the growth of cross-border payment applications in emerging markets has attracted regulatory attention. Countries are establishing dedicated regulatory frameworks rather than relying on existing regulations, showing that stablecoins are now seen as a type of independent financial instrument requiring special regulation. This will have a profound impact on the global digital currency landscape.

Capital Deployment

Visa-backed Stablecoin Firm Rain Receives $58 Million Investment from Samsung-led Consortium

Key Highlights:

· Stablecoin payment infrastructure startup Rain has completed a $58 million Series B funding round led by Sapphire Ventures, with participation from Samsung's venture arm (Samsung Next), Dragonfly, Galaxy Ventures, among others, bringing its total funding to $88.5 million

· Rain offers Visa debit and credit card services, providing "enterprise-grade stablecoin payment infrastructure" to fintech companies, banks, and marketplaces, enabling clients to issue "stablecoin-powered cards, wallets, and payment programs"

· The company's cards can be used anywhere Visa is accepted, with transaction volumes growing tenfold since January this year; MetaMask also plans to launch a MetaMask card supporting Mastercard merchants by the end of the year

Why It Matters:

· The GENIUS Act and the European MiCA framework have paved a clear regulatory path for stablecoins, driving a surge in corporate interest in stablecoins. Rain's connection of stablecoins to the Visa global network transforms digital assets into a means of everyday consumption, bridging the gap between crypto and the traditional financial system. Following regulatory clarity on stablecoins established during the Trump administration, major U.S. banks like Bank of America have expressed interest in issuing their own stablecoins, with the market expected to reach a trillion-dollar scale within a few years, providing significant growth opportunities for infrastructure providers like Rain.

Stablecoin Platform M0 Completes $40 Million Series B Funding Round

Key Highlights:

· Swiss stablecoin platform M0 has completed a $40 million Series B funding round led by Polychain Capital, Ribbit Capital, and Endeavor Catalyst, with existing investors Pantera and Bain Capital Crypto participating, bringing its total funding to $100 million since its inception in 2023

· M0's unique "first principle" approach separates stablecoin reserve management from programmability: a regulated entity manages the assets behind the stablecoin (such as cash and US Treasuries), while developers can use the M0 platform to define who can create, hold, and transfer these assets

· The M0 platform will support MetaMask's mUSD stablecoin issuance, expected to go live later this year on Ethereum and Linea; in July this year, M0's total supply exceeded $300 million, doubling since January

Why It Matters:

· With the US passing a stablecoin regulatory bill this year (GENIUS Act), companies like M0 are creating bridges for traditional enterprises to enter the crypto space. M0's application-specific stablecoin model decouples reserve management from token functionality, allowing developers to flexibly control the digital dollar's features while maintaining compliance. Bridge, acquired by payment giant Stripe for $1.1 billion last year, has integrated into the M0 platform as the first US-regulated issuer, highlighting the deep integration of traditional finance with emerging stablecoin infrastructure. This reflects market expectations of an industry transformation under new regulatory frameworks, possibly ushering in thousands of competitors to Tether and USDC.

Ripple and Circle Co-Invest in Cross-Border Payment Platform Tazapay

Key Takeaways:

· Singaporean cross-border payment infrastructure platform Tazapay completes its Series B funding round, led by Peak XV Partners, with digital assets giants Ripple and Circle participating; the funds will be used to accelerate its licensing applications in key markets such as the US, Australia, Hong Kong, and the UAE

· Tazapay is building a global payment collection and settlement infrastructure based on modern payment rails, with its key use case being providing fiat-to-stablecoin bridging services in emerging markets, currently boasting one of the widest fiat collection networks in emerging markets

· Ripple and Circle's investment highlights Tazapay's core role in bridging the traditional finance and digital currency worlds, particularly in building compliant "last-mile" connections

Why It Matters:

· This funding round marks a key step in stablecoin infrastructure expanding into emerging markets. As the boundaries between traditional finance and the crypto world blur, Tazapay's fiat bridging service will address pain points in cross-border payments such as multi-day settlement times, high costs, and reliance on intermediaries. Strategic investments by Ripple and Circle, two blockchain payment giants, indicate the industry is building a more comprehensive global payment network, particularly targeting emerging markets underserved by traditional financial services, accelerating the practical application and adoption of stablecoins as cross-border payment solutions.

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