Global Stablecoin Newsletter#05

Global Stablecoin Market Overview

Total Market Cap: $280.4B7-Day Change: +$2.9B / +1.07%On the market side, USDT remains firmly in the lead with a market cap of approximately $167B, accounting for about 60%, maintaining its dominant position; USDC also performed steadily this period, driven by institutional demand, with its market cap rising to $69B, accounting for about 24–25%, continuing to hold its position as the representative of compliant stablecoins. USDe (Ethena), although growth has slightly slowed, still maintains its position as the third-largest stablecoin with a volume of approximately $12.2B; USD1’s market cap broke through $2.4B again this period, accounting for nearly 0.9%, showing significant growth. Its upward momentum mainly comes from the liquidity improvement brought by Coinbase’s recent listing, and the additional $200 million minting that pushed up total supply. Overall, the stablecoin market remains in a high prosperity phase driven by gradually clarifying regulations and expanding application scenarios. Among them, established leaders are rising steadily, while emerging projects, especially USD1’s rapid rise, have brought new variables to the market landscape.Data source: defillama

Key Highlights

· US Treasury Department publicly solicits opinions → Seeking innovative technology strategies to help financial institutions strengthen anti-money laundering capabilities· Federal Reserve cancels banks’ special cryptocurrency regulatory project → Stops “Novel Activities Supervision Program”· Wyoming launches first state-level stablecoin FRNT → Becomes first US state government to issue its own stablecoin· World Liberty Financial mints $200 million USD1 → Trump family stablecoin becomes world’s sixth-largest stablecoin by market cap· Circle partners deeply with Mastercard → Embeds USDC into global payment network· MetaMask announces launch of native stablecoin mUSD → Partners with Bridge and M0 to become first self-custody wallet to launch autonomous stablecoin· Bullish completes $1.15 billion stablecoin IPO → Becomes first IPO case in the US to complete fundraising using stablecoins· Reuters: China may consider launching offshore yuan stablecoin → Promoting yuan internationalization· South Korea FSC will submit stablecoin regulatory bill in October → Proposes requirements for stablecoin issuance, collateral management, and risk control systems· Japan to approve first yen stablecoin as early as autumn → Fintech company JPYC will issue JPYC stablecoin· Fosun Group officially enters Hong Kong stablecoin field → Has assembled complete license application team

Western Stablecoin Updates

Regulations & Policies

US Treasury Department publicly solicits opinions, seeking innovative or novel methods, technologies and strategiesUS President Donald Trump signed the “GENIUS Act” to establish a regulatory framework for stablecoins and impose a “tight rein” on illegal activities involving cryptocurrencies. To this end, the US Treasury Department publicly solicited opinions on Monday, widely inviting all parties to propose “innovative or novel methods, technologies and strategies” to help financial institutions strengthen their ability to detect suspicious transactions such as money laundering. According to the announcement, the consultation scope covers application programming interfaces (APIs), artificial intelligence (AI), digital identity verification, and blockchain technology. The Treasury Department stated that the deadline for opinion replies is October 17, and relevant research results will be submitted to the Senate Banking Committee and House Financial Services Committee, which may further promote regulatory details in the future.Read more: https://www.coindesk.com/policy/2025/08/18/u-s-treasury-department-starts-work-on-genius-gathering-views-on-illicit-activityFederal Reserve cancels banks’ special cryptocurrency business regulatory projectOn the 15th local time, the Federal Reserve issued a statement saying it has stopped its “Novel Activities Supervision Program” established in 2023, part of which was to strengthen regulatory oversight of banks’ cryptocurrency businesses. The Federal Reserve Board issued a statement on the 15th saying that since the Board launched a regulatory program for certain crypto and fintech activities in the banking sector, the Board has deepened its understanding of these activities, related risks, and bank risk management practices. Therefore, the Board is integrating this information and oversight of these activities back into standard regulatory processes and withdrawing the regulatory letter that established the program in 2023. The Federal Reserve Board also requires simplifying compliance processes for banks engaging in cryptocurrency business, but core regulatory principles such as anti-money laundering and consumer protection have not changed.Read more: https://www.coindesk.com/policy/2025/08/15/u-s-fed-officially-scraps-specialist-group-meant-to-oversee-crypto-issuesUS banking industry jointly opposes “GENIUS Act” — Stablecoin shockwaves shake traditional giantsOn August 16, the American Bankers Association (ABA) led 52 banks, lobbying groups, and consumer organizations in jointly issuing a letter to the Senate Banking Committee, publicly calling for amendments to the “GENIUS Act.” The core appeal of the joint action directly targets special provisions in the “GENIUS Act,” believing they would pose a threat to America’s existing financial system. Behind the joint letter is a multi-party game between old and new forces around regulatory power, credit models, and profit sources. The traditional banking sector is concerned that if the “GENIUS Act” is fully implemented in its current form, it may threaten their core position in the financial industry chain.Read more: https://www.panewslab.com/en/articles/16e1763a-35c7-44af-8523-359ec6806f1aWyoming launches first state-level stablecoin FRNT, now live on Ethereum, Solana and 7 other blockchainsWyoming has officially launched a stablecoin called Frontier Stable Token (FRNT), becoming the first US state government to issue its own stablecoin. FRNT is backed by US dollars and short-term US Treasury bonds and is currently live on 7 blockchains, including Ethereum, Solana, Arbitrum, Avalanche, Polygon, Optimism, and Base. Due to remaining regulatory obstacles, the token is not yet open to the public.Read more: https://www.coindesk.com/business/2025/08/19/wyoming-state-debuts-u-s-dollar-stablecoin-on-seven-blockchainsFederal Reserve’s Waller urges embracing innovation, FOMC discusses stablecoinsFederal Reserve Governor Waller said Wednesday at the Wyoming Blockchain Summit that the Federal Reserve should continue to support technology and innovation, especially in emerging areas such as digital assets and artificial intelligence, to promote the modernization of the US payment system and economic growth. Waller’s speech came hours before the Federal Reserve released minutes from its July monetary policy meeting, which mentioned stablecoins for the first time.Read more: https://www.federalreserve.gov/newsevents/speech/waller20250820a.htmTether appoints former White House Crypto Council Executive Director Bo Hines as Digital Assets and US Strategy AdvisorStablecoin issuer Tether has appointed former White House Crypto Council Executive Director Bo Hines as Strategic Advisor for Digital Assets and US Strategy. During his tenure at the White House, Hines actively promoted multiple policy initiatives related to digital asset innovation, led the development of regulatory frameworks for stablecoin issuers, and promoted cooperation between the government and blockchain industry.Read more: https://www.forbes.com/sites/jasonbrett/2025/08/26/tether-ceo-paolo-ardoino-and-advisor-bo-hines-discuss-us-stablecoins/

Partnerships and Ecosystem Expansion

Stripe partners with Paradigm to build payment-specific blockchain Tempo, appoints Paradigm’s Matt Huang as CEOStripe is collaborating with venture capital firm Paradigm to develop a new Layer-1 blockchain called Tempo, which aims to build a high-performance, payment-focused network that natively supports stablecoin transactions and is compatible with smart contracts in the Ethereum ecosystem (Ethereum-compatible). The project is currently in “stealth mode” with a team of about 5 people. Stripe has appointed Paradigm co-founder and managing partner Matt Huang as Tempo’s first CEO. He will continue his related duties at Paradigm and is already a Stripe board member.Read more:https://www.coindesk.com/business/2025/08/13/stripe-taps-paradigm-s-matt-huang-to-lead-new-blockchain-tempo-fortunehttps://www.coindesk.com/business/2025/08/12/stripe-building-payments-blockchain-tempo-with-paradigm-fortuneStablecoin groups Circle, Paxos test new technology to verify crypto paymentsStablecoin heavyweights Circle Internet Group Inc. and Paxos Trust Co. have piloted a new approach to prevent counterfeiting and help companies verify their digital asset holdings. These companies collaborated with fintech startup Bluprynt, founded by Georgetown Law professor Chris Brummer, using cryptography and blockchain technology to provide issuer verification when companies issue stablecoins. According to a statement, the pilot provides a method to use Bluprynt’s technology to trace tokens back to verified issuers.Read more: https://www.bloomberg.com/news/articles/2025-08-27/circle-paxos-trial-know-your-issuer-tech-to-weed-out-copycatsWorld Liberty Financial mints 9% of USD1 supply after Waller speechThe Trump family’s decentralized finance project World Liberty Financial minted over $200 million worth of stablecoins hours after Federal Reserve Governor Christopher Waller gave a speech praising stablecoins. World Liberty announced on X Thursday that it minted $205 million worth of its platform stablecoin USD1 for its treasury, pushing its supply to a record high of $2.4 billion. Since its launch in early April, this Trump family-backed stablecoin has become the world’s sixth-largest stablecoin by market cap, ranking behind Tether (USDT) with $167 billion and 60% market share, followed by Circle Internet Group’s $67.4 billion USDC with 24% share.Read more: https://cointelegraph.com/news/trump-world-liberty-financial-mints-9-of-its-stablecoin-supplyCoinbase to list Trump family WLFI’s stablecoin USD1Coinbase announced it will add World Liberty Financial USD (USD1) to its listing roadmap. USD1 is a stablecoin issued by the Trump family project WLFI. Coinbase announced it will list the Ethereum-based World Liberty Financial USD (USD1) stablecoin, and if liquidity conditions are met, the USD1-USD trading pair will launch in phases later.Read more: https://x.com/CoinbaseAssets/status/1958514458654855603Circle deeply integrates USDC into global payments through partnerships with Mastercard and FinastraCircle is embedding USDC into global payment networks as part of its broader push across Africa, Asia, Europe, and the Middle East. Circle launched two partnerships to embed stablecoin settlement into mainstream finance. New agreements with Mastercard and Finastra aim to expand USD Coin’s role among global merchants and banks. Mastercard said Wednesday it will enable acquirers and merchants in Eastern Europe, Middle East, and Africa (EEMEA) to settle transactions in USDC and Euro Coin (EURC). Arab Financial Services and Eazy Financial Services will be the first to adopt the service, marking the first time stablecoin settlement services are offered through Mastercard in the region.Read more: https://cointelegraph.com/news/circle-usdc-payments-new-deals-mastercard-finastraBinance stablecoin inflows exceed $1.6 billionCryptocurrency exchange Binance users deposited $1.65 billion in stablecoins, a massive inflow typically seen as a precursor to renewed spot crypto demand after recent market selloffs. According to data from on-chain analytics provider CryptoQuant, this deposit coincided with nearly $1 billion in Ethereum (ETH) withdrawals from Binance. This also marks the second time this month that the exchange’s net stablecoin deposits exceeded $1.5 billion, CryptoQuant’s Amr Taha wrote, “highlighting a new wave of capital entering the spot market.”Read more: https://cointelegraph.com/news/spot-bitcoin-etfs-break-outflow-streak-219m-fidelity-blackrockMetaMask announces launch of wallet-native stablecoin mUSD, partnering with Bridge and M0The world’s largest crypto wallet MetaMask officially announced it will launch native USD stablecoin mUSD, becoming the first self-custody wallet to launch its own stablecoin. According to official disclosure, mUSD is built by Bridge, Stripe’s stablecoin issuing company, with M0 protocol providing decentralized infrastructure support, planned to officially launch on Ethereum and Linea networks later this year. This move is seen by the market as an important signal that the stablecoin field is entering a high-speed expansion period, with many application-based stablecoins expected to emerge in the short term. Industry data shows that monthly on-chain stablecoin trading volume has exceeded nearly $1 trillion, reaching a historic high.Read more: https://metamask.io/news/metamask-announces-stablecoin-metamask-usdSquads announces strategic partnership with Coinbase to accelerate USDC adoptionCurrently, Squads products custody over $1 billion USDC, accounting for nearly 15% of total supply on Solana chain, and have set USDC as the default stablecoin for their product suite.Read more: https://www.ainvest.com/news/coinbase-squads-partner-boost-usdc-adoption-solana-blockchain-2508/BVNK partners with Paxos to provide stablecoin payment services in all 50 US statesBVNK is expanding its stablecoin payment services to all 50 US states through its own licenses and partnership with Paxos. This arrangement allows businesses to deploy BVNK’s stablecoin infrastructure nationwide, with Paxos providing access to New York through its digital asset limited purpose trust charter. The agreement will also give BVNK’s customers the option to use USDG, a USD-backed stablecoin issued by Paxos. USDG is regulated by the EU and Singapore and is expected to be available through BVNK’s services in late 2025.Read more: https://thepaypers.com/crypto-web3-and-cbdc/news/bvnk-enables-stablecoin-payments-in-all-us-states-after-regulatory-shiftBinance Pay, SPAR and DFX.swiss partner to provide crypto payment services in 100+ Swiss storesSPAR Switzerland announced partnerships with Binance Pay and DFX.swiss to support cryptocurrency payments in over 100 stores, with plans to expand to 300+ stores. Consumers can pay with over 100 cryptocurrencies including stablecoins without any gas fees, with payments instantly converted to fiat through DFX.swiss for settlement. Merchants can save two-thirds of commission fees compared to traditional card payments.Read more: https://www.binance.com/en/blog/payments/8435723515272008849Western Union considers launching USD stablecoinWestern Union is evaluating the possibility of launching a USD stablecoin to compete with cryptocurrency projects. CEO Devin McGranahan said the stablecoin would primarily target markets outside the US and could serve as a “USD savings account” for customers in some countries.Read more: https://www.ledgerinsights.com/western-union-considers-issuing-stablecoin-report/Transak raises $16 million strategic funding from Tether and IDG Capital to expand stablecoin payment infrastructureWeb3 payment infrastructure company Transak announced completion of $16 million strategic funding, co-led by IDG Capital and Tether, with participation from Primal Capital, 1kx, Protein Capital, Fuel Ventures, and others. The company plans to use the funding to expand its stablecoin payment system and enter new markets.Read more: https://transak.com/blog/strategic-fundraiseUSD.AI raises $13 million to expand GPU-backed stablecoin lending businessStablecoin lending protocol USD.AI completed $13 million Series A funding led by Framework Ventures, with participation from Bullish, Dragonfly, Arbitrum, and others. USD.AI, developed by Permian Labs, provides loans to emerging AI companies using GPU hardware as collateral, with approval times reduced by over 90% compared to traditional institutions, and issues USD-pegged USDai and yield-bearing sUSDai.Read more: https://www.coindesk.com/business/2025/08/13/usd-ai-raises-usd13m-to-expand-gpu-backed-stablecoin-lendingCircle announces first quarterly report after going publicTotal revenue of $1.237 billion in H1 2025, USDC circulation surged 90% to $61.3 billion, market cap once exceeded $50 billion. Despite net loss of $417 million due to IPO expenses, adjusted EBITDA grew 52% to $126 million, with stablecoin business revenue accounting for over 99% as the core engine.Read more: https://finance.yahoo.com/news/circle-reports-increased-revenue-first-210937139.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAFwT87HVjnaKxHwjUQhQ2hBxYOOhOYvD9315914fEs2OlcT2nZhnafxjWvMbne0O1VrjF1H3fBSteAYUtmwjytZR2Bk7z0FPkSxkV1tJubqoCD1nmlgKZbYHnm-pnVX1hTfQiYLBoLcT-JgdzuwhlEQ6IK2pKOMyTAVKrCIAdQerCap stablecoin protocol officially launches on Ethereum, introduces cUSD, stcUSD and Frontier programEthereum ecosystem stablecoin protocol Cap officially went live, opening cUSD minting, allowing users to participate in Frontier program’s Epoch1 to earn Caps. Cap announced completion of $11 million funding in April this year, with participation from Franklin Templeton and Triton Capital.Read more: https://phemex.com/news/article/cap-protocol-launches-on-ethereum-with-cusd-minting-and-frontier-plan_15327Citigroup considers providing custody for stablecoin-related assets and crypto ETFs and exploring stablecoin paymentsCitigroup is considering providing custody and payment services for stablecoins and crypto ETFs. Citi’s Global Partnerships and Innovation head Biswarup Chatterjee said the primary direction is providing custody services for high-quality assets supporting stablecoins, while also researching custody for digital assets like Bitcoin spot ETFs, an area currently dominated by Coinbase. Citi is also developing solutions using stablecoins to improve cross-border payment and instant settlement efficiency, planning to allow customers to transfer stablecoins between accounts or convert them to USD.Read more: https://cointelegraph.com/news/citigroup-crypto-custody-payments-stablecoins-bitcoin-ether-etfsBullish completes $1.15 billion stablecoin IPO fundraisingAccording to official announcement, digital asset platform Bullish (NYSE: BLSH) announced that its $1.15 billion IPO funding has been entirely settled through stablecoins, becoming the first IPO case in the US to complete fundraising using stablecoins. Most stablecoins were minted on Solana network, coordinated by Jefferies for delivery, with Coinbase handling custody. Stablecoins used include USDCV, EURCV, USDG, PYUSD, RLUSD, and other currencies.Read more: https://www.coindesk.com/business/2025/08/19/bullish-s-usd1-15b-in-ipo-proceeds-was-entirely-in-stablecoins-a-first-for-public-marketFigure applies for Nasdaq listing under FIGR tickerBlockchain-based lending company Figure Technology Solutions Inc. publicly filed IPO application, joining crypto-related companies rushing to go public. According to documents filed with the Securities and Exchange Commission (SEC) on Monday, this New York-based company achieved revenue of $43.8 million and net profit of $29.1 million in the six months ending June 30; compared to revenue of $12.5 million and net loss of $15.6 million in the same period last year. Figure announced earlier this month that it had confidentially filed for IPO. A 2021 venture capital funding round valued the company at $3.2 billion.Read more: https://www.coindesk.com/markets/2025/08/19/blockchain-lender-figure-joins-crypto-ipo-rush-with-nasdaq-listing-bid-under-figr

Eastern Stablecoin Updates

Regulations & Policies

Reuters: China may consider launching offshore yuan stablecoinAccording to Reuters, China is considering allowing yuan-backed stablecoins for the first time to promote broader global adoption of the yuan, marking a major shift in China’s stance on digital assets. Subject to strict capital controls, yuan stablecoins would be difficult to implement if issued in mainland China, with experts generally believing they would more likely operate in offshore markets (using CNH), especially Hong Kong, which has a more open legal and market environment, making it the most likely pilot region.Read more:https://www.reuters.com/business/finance/china-considering-yuan-backed-stablecoins-boost-global-currency-usage-sources-2025-08-21/?utm_source=chatgpt.comhttps://cointelegraph.com/news/dont-expect-china-stablecoin-touch-mainlandSouth Korea Financial Services Commission FSC to submit stablecoin regulatory bill in OctoberSouth Korea’s Financial Services Commission (FSC) is expected to submit a stablecoin regulatory bill to the National Assembly in October. Ruling party lawmaker Park Min-gyu said Monday at a stablecoin-related discussion that he had received a report from the FSC containing this plan. The bill will propose requirements for stablecoin issuance, collateral management, and internal risk control systems, and is expected to be included in the second set of digital asset legal frameworks currently being developed.Read more: https://cointelegraph.com/news/south-korea-won-stablecoin-bill-october-dollar-dependenceJapan to approve first yen-denominated stablecoin as early as autumnAccording to Nikkei on August 18, Japan’s Financial Services Agency will approve the issuance of yen-pegged stablecoins as early as autumn this year, the first such case in Japan. Fintech company JPYC will register as a remittance company this month. The global stablecoin market, dominated by USD, has exceeded $250 billion, and Japan aims to promote stablecoins as a means of international remittance. The stablecoin issued by JPYC will be called “JPYC,” maintaining a value of 1 yen to 1 JPYC, backed by highly liquid assets such as deposits and government bonds. Issuance is expected to begin weeks after remittance institution registration is completed.Read more: https://asia.nikkei.com/spotlight/cryptocurrencies/japan-to-greenlight-first-yen-based-stablecoinHong Kong Monetary Authority to implement Basel crypto asset capital requirements in 2026The Hong Kong Monetary Authority recently issued a circular confirming that it will fully implement new bank capital requirements based on the Basel Committee on Banking Supervision’s crypto asset regulatory standards starting January 1, 2026. The new rules set a maximum 1250% risk weight for unauthorized public blockchain crypto asset exposures, requiring banks to hold 1:1 capital. However, both the Basel Committee and HKMA have made clear that Basel crypto asset regulatory standards generally will not impose credit risk or market risk regulatory capital requirements on banks for crypto assets held in custody for clients, provided that client crypto assets are segregated from the bank’s proprietary assets.Read more: https://www.ledgerinsights.com/hong-kong-finalizes-bank-basel-crypto-rules-to-start-1-jan-2026/Thailand to relax restrictions on foreign tourists using cryptocurrency for consumer spendingThailand Finance Minister Pichai Chunhavajira said restrictions on foreign tourists converting digital assets to Thai baht for travel expenses and consumer spending in the country will be relaxed. Pichai said at Monday’s press conference that the TouristDigiPay program will launch in Q4, conducting an 18-month pilot under a sandbox regulatory framework. Pichai said the new measures will facilitate international travelers using their digital assets and cryptocurrencies to support consumer spending in Thailand.Read more: https://www.bloomberg.com/news/articles/2025-08-18/thailand-to-allow-foreign-tourists-to-convert-crypto-to-baht

Partnerships & Ecosystem Expansion

Japan Monex Group considers issuing yen stablecoinTokyo-based Monex Group is considering launching a yen-pegged stablecoin, with group chairman Oki Matsumoto saying this is to remain competitive in digital finance. Matsumoto said: “Issuing stablecoins requires strong infrastructure and sufficient capital support, but if we don’t participate, we will fall behind in the industry.”Read more: https://cointelegraph.com/news/japan-monex-group-considers-launching-yen-pegged-stablecoinChinese tech companies may partner with digital banks to apply for Hong Kong stablecoin issuanceOn August 26, Chinese tech companies may partner with digital banks (formerly virtual banks) to apply for Hong Kong stablecoins. Many Chinese tech giants are shareholders of local Hong Kong digital banks, and they and financial institutions are eyeing tokenized asset trading and cross-border payments, so they may form partnerships with Hong Kong digital banks to promote stablecoin issuance.Read more: https://news.mingpao.com/pns/%e7%b6%93%e6%bf%9f/article/20250826/s00004/1756138068014/%e4%b8%ad%e8%b3%87%e7%a7%91%e4%bc%81%e7%94%b3%e6%b8%af%e7%a9%a9%e5%ae%9a%e5%b9%a3-%e7%b5%90%e5%90%88%e6%95%b8%e5%ad%97%e9%8a%80%e8%a1%8cFosun Group officially enters Hong Kong stablecoin field, has assembled complete license application teamFosun founder Guo Guangchang personally led a team to visit Hong Kong Chief Executive Lee Ka-chiu and Financial Secretary Paul Chan respectively, seeking policy support for the group’s stablecoin business. The goal is to seize opportunities in the global stablecoin market while promoting digital upgrade of Fosun Group’s diversified businesses.Read more: https://www.ainvest.com/news/fosun-reportedly-pursues-hong-kong-stablecoin-license-regulations-2508/

This report is jointly produced by MathWallet and its stablecoin wallet product, StableWallet, aiming to provide a biweekly selection of global stablecoin-related policy, market, and technology updates.MathWallet is a multi-chain wallet for the Web3 era, supporting over 100 blockchains including BTC, ETH, Polkadot, Cosmos, Filecoin, Solana, and BNBChain, with more than 4 million users worldwide.StableWallet is an innovative AA wallet designed specifically for stablecoin management and trading, offering seamless, secure, and compliant stablecoin operations, with over 700K users already onboard.Follow us for the latest insights and analysis on the stablecoin ecosystem.
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X：@MathWallet｜@StableWallet_aiThe above content is for reference only and does not constitute any investment advice. Information is sourced from public channels; please refer to official announcements for accuracy.