Global Stablecoin Newsletter#04
Global Stablecoin Market Overview
Total Market Cap: $271.6B7-Day Change: +$2.9B / +1.08%In terms of market performance, the overall stablecoin market has grown from $205 billion at the beginning of the year to $271 billion this week, representing a 32.2% increase. Analysts suggest that if the growth trend continues, the total stablecoin supply “could approach $300 billion by year-end.” USDT has a total market cap of approximately $164.86B, accounting for about 60.7% of the market. USDC ranks second with strong performance this week, adding significant new supply and remaining an important representative of compliant stablecoins, with a market cap of $65.22B, accounting for about 24%. USDe has shown outstanding performance in the past two weeks, with its market cap surging to $10.91B, becoming the current third-largest stablecoin. Sky’s USDS saw supply growth of 23% to $4.785B during the same period, ranking fourth by market cap.Data source: defillama
Key Highlights
US SEC provides interim stablecoin guidance → US dollar stablecoins meeting specific conditions can be classified as “cash equivalents”Bank for International Settlements issues another warning → Rapid stablecoin expansion poses new risks to regulators and may threaten monetary sovereigntyEthena USDe supply grows dramatically by 75% → Reaches $9.3 billion to become third-largest stablecoin by market capCircle to launch new blockchain Arc → EVM-compatible L1 blockchain to be launched later this yearRipple to acquire Rail for $200 million → Plans to complete stablecoin platform acquisition in Q4Visa extends settlement platform to Stellar and Avalanche → Adds support for three stablecoins: USDG, PYUSD, EURCStable completes $28 million seed funding → Led by Bitfinex and Hack VCSouth Korea plans to launch regulated stablecoins in 2025 → Financial Services Commission submits planHong Kong stablecoin regulations show immediate impact → Local OTC market size drops 32.94% within one weekStandard Chartered and Animoca form stablecoin joint venture → Launch Anchorpoint Financial
Western Stablecoin Updates
Regulations & Policies
US SEC provides interim guidance: Specific stablecoins can be treated as cash equivalentsThe US SEC has issued interim accounting guidance allowing US dollar stablecoins that meet specific conditions to be classified as “cash equivalents,” providing a simplified path for financial statement processing. This transitional measure aims to provide operational guidance and clarity to the market before comprehensive regulations are enacted.Read more: https://www.theblock.co/post/365554/sec-staff-guidance-stablecoins?ref=thisweekinfintech.com
Coinbase and PayPal persist with stablecoin rewards amid GENIUS Act regulatory controversyCoinbase CEO Brian Armstrong stated during Thursday’s earnings call that the company will continue to offer USDC holding rewards to users, calling the program an important differentiating advantage for attracting users. Despite the GENIUS Act prohibiting stablecoin issuers from paying interest or yields, Armstrong clarified: “We are not the issuer, and what we pay is not interest, but rewards.”Read more: https://finance.yahoo.com/news/coinbase-paypal-press-forward-stablecoin-211059146.html?ref=thisweekinfintech.com
US banking groups demand closure of GENIUS Act stablecoin yield “loophole”Led by the Bank Policy Institute (BPI), multiple US banking groups are urging regulators to close a loophole that allegedly could indirectly allow stablecoin issuers and their affiliated companies to pay interest or yields on stablecoins. BPI wrote to Congress on Tuesday, warning that failure to close this loophole in the new stablecoin regulations under the GENIUS Act could disrupt credit flows to US businesses and households, potentially causing an outflow of $6.6 trillion in deposits from the traditional banking system.Read more: https://cointelegraph.com/news/us-bankers-want-stablecoin-yield-loophole-closed
Bank for International Settlements issues another warning: Rapid stablecoin expansion poses new risks to regulatorsThe Bank for International Settlements (BIS) issued another warning on Friday that the rapid expansion of stablecoins is creating new policy challenges for financial regulators worldwide and may even threaten the monetary sovereignty of major economies. In its latest report, the BIS noted that stablecoins are circulating in increasingly large volumes and integrating more deeply with traditional financial systems, but due to their borderless and pseudo-anonymous nature, they require stricter regulatory scrutiny.Read more: https://financefeeds.com/bis-warns-of-regulatory-gaps-as-stablecoin-use-grows-across-borders-and-asset-markets/?ref=thisweekinfintech.com
Partnerships and Ecosystem Expansion
Ethena USDe supply grows dramatically by 75% to $9.3 billionOver the past month, Ethena USDe supply has grown dramatically by 75% to $9.3 billion, surpassing Sky USDS to become the third-largest stablecoin by market cap after USDT and USDC. Meanwhile, Ethena has also become the sixth-largest TVL protocol in the DeFi space.Read more: https://www.theblock.co/post/365414/ethenas-usde-stablecoin-market-cap?ref=thisweekinfintech.com
Coinbase restarts stablecoin bootstrap fund to promote USDC development in DeFiCoinbase has restarted its stablecoin bootstrap fund, aimed at enhancing USDC liquidity in the decentralized finance (DeFi) space. The first batch of supported platforms includes Aave, Morpho, Kamino, and Jupiter.Read more: https://cointelegraph.com/news/coinbase-revives-stablecoin-fund-to-boost-usdc-defi-liquidity
USDC issuer Circle to launch new Layer 1 blockchain Arc this yearUS-listed company and USDC stablecoin issuer Circle announced it will launch an Ethereum Virtual Machine (EVM)-compatible Layer 1 (L1) blockchain later this year. The company released its second-quarter results on Tuesday and announced the launch of Arc — a new network designed to provide “enterprise-grade infrastructure” for stablecoin payments, foreign exchange, and capital markets applications. Circle’s Arc is expected to go live on a public testnet and will use USDC as its native gas token, allowing users to pay transaction fees with stablecoins. Alongside the Arc launch, Circle disclosed that second-quarter total revenue and reserve income increased 53% year-over-year to $658 million.Read more: https://cointelegraph.com/news/usdc-issuer-circle-layer-1-blockchain-arc
Paxos restarts US bank license application as stablecoin regulatory rules take shapePaxos has reapplied for a US national trust bank charter after its 2021 conditional approval expired. Crypto infrastructure company Paxos Trust Company, which issues PayPal’s PYUSD stablecoin, has applied to convert its New York limited purpose trust license to a US national trust bank license, restarting the process that expired in 2023.Read more: https://cointelegraph.com/news/paxos-us-bank-license-stablecoin-rules
MetaMask to unveil new stablecoin plansThe MetaMask stablecoin could debut as early as Thursday. According to an Aave governance proposal that appeared last week, the Ethereum wallet provider will partner with payment service provider Stripe to introduce the mmUSD stablecoin as the primary trading pair for its various services, but it was subsequently deleted. DLNews first reported on this deleted proposal. The stablecoin platform M⁰ reportedly supports this effort.Read more: https://finance.yahoo.com/news/metamask-set-unveil-plans-stablecoin-220040961.html
Ripple to acquire stablecoin platform Rail for $200 millionRipple will acquire stablecoin platform Rail for $200 million. The acquisition will be completed in the fourth quarter of this year, pending regulatory approval. Previously, Ripple has issued its own stablecoin RLUSD and has made significant investments in stablecoin infrastructure in recent months.Read more: https://cointelegraph.com/news/ripple-to-buy-stablecoin-platform-rail-for-200-million
Visa expands settlement platform to Stellar, Avalanche, adds support for 3 stablecoinsVisa announced it is expanding its settlement platform to support two additional US dollar stablecoins — Global Dollar (USDG) and PayPal USD (PYUSD), two blockchains — Stellar and Avalanche, and the euro-backed stablecoin EURC. The two newly added blockchains join the other two chains Visa already supports: Ethereum and Solana, while Circle’s EURC addition will extend the company’s settlement capabilities to over 25 fiat currencies.Read more: https://www.coindesk.com/business/2025/07/31/visa-expands-settlement-platform-to-stellar-avalanche-adds-support-for-3-stablecoins?ref=thisweekinfintech.com
Layer 1 blockchain network Stable completes $28 million seed funding roundUSDT-powered Layer 1 blockchain network Stable, designed to efficiently process financial transactions through stablecoins, announced the completion of a $28 million seed funding round led by Bitfinex and Hack VC. Participants include Franklin Templeton, Castle Island Ventures, KuCoin Ventures, as well as angel investors including Tether CEO Paolo Ardoino and Braintree founder Bryan Johnson.Read more: https://www.theblock.co/post/364952/tether-focused-layer-1-stable-raises-28-million-seed-round-to-boost-usdt-adoption?ref=thisweekinfintech.com
Coinbase Q2 earnings show Circle’s USDC margins are shrinkingFollowing Coinbase’s Q2 earnings release, Mizuho Securities analysts reiterated their view that USDC issuer Circle’s stock price will ultimately decline. This is because they believe the recently public stablecoin issuer’s margins may continue to shrink due to rising distribution costs. Analysts estimate that Circle earned approximately $625 million in total interest income from USDC reserves in Q2, of which $332.5 million was paid to Coinbase.Read more: https://www.theblock.co/post/365302/coinbases-q2-earnings-point-to-shrinking-usdc-margins-for-circle-mizuho-says?ref=thisweekinfintech.com
Pantera releases 2024 blockchain compensation survey reportPantera Capital released its 2024 blockchain compensation survey report, showing that stablecoins account for 90% of cryptocurrency salary payments in 2024. Crypto industry salaries have risen across the board, with the proportion accepting stablecoin salaries reaching 9.6%, triple from last year, with USDC being the most popular.Read more: https://blockworks.co/news/stablecoins-salaries-2024-pantera-survey?ref=thisweekinfintech.com
Ruble-backed stablecoin A7A5 transfers surge in July, breaking through $40 billionRussian defense sector lending institution Promsvyazbank, which is under Western sanctions, and payment company A7 announced the launch of the new Kyrgyzstan-based stablecoin A7A5 in January this year. Blockchain research company Elliptic reports that the ruble-backed stablecoin A7A5 saw a surge in trading volume in July, with the total amount of funds transferred through the currency breaking through $40 billion. Currently, daily transfers through A7A5 exceed $1 billion, with a total value of $41.2 billion, noting that July saw surges in trading volume, liquidity, and circulating token count.Read more: https://www.reuters.com/business/finance/transfers-with-rouble-backed-crypto-coin-pass-40-billion-after-july-spike-2025-07-28/?ref=thisweekinfintech.com
Eastern Stablecoin Updates
Regulations & Policies
Hong Kong stablecoin regulations cause local OTC market to drop ~32.94% within one week of implementationAccording to Bitrace monitoring, within one week of Hong Kong stablecoin regulations implementation, the local OTC market size dropped by approximately 32.94%. Daily average USDT transfer volume at storefront-type service provider business addresses decreased by 43.20% (from 9.47 million to 5.38 million), while non-storefront service provider business addresses decreased by 30.65% (from 42.57 million to 29.52 million).Read more: https://x.com/Bitrace_team/status/1955173178411712957
South Korea plans to launch regulated crypto ETFs and stablecoins in 2025South Korea has developed a roadmap to launch regulated spot crypto ETFs and stablecoins by the end of 2025. The Financial Services Commission has submitted the plan to the Presidential Policy Planning Committee. The roadmap includes custody systems, pricing mechanisms, operational structures, and strict investor protection rules. The plan proposes Korean won-based stablecoins to support payments, remittances, and domestic capital retention.Read more: https://coincentral.com/south-korea-targets-2025-rollout-for-regulated-crypto-etfs-and-stablecoins/?utm_source=chatgpt.com
South Korean Presidential Office includes “building digital asset ecosystem” and “developing domestic crypto market” in five-year plan, accelerating related legislationThe committee released a five-year national administration plan that day, listing 123 national policy tasks. These tasks include “building a digital asset ecosystem” and “developing the domestic crypto asset market.” In early June this year, the new government that came to power after President Lee Jae-myung’s election designated these two tasks as “key national policy tasks.”Read more: https://cryptonews.com/news/south-korea-takes-another-step-toward-crypto-reform-amid-talk-of-regulatory-shake-up/?utm_source=chatgpt.com
South Korea’s Financial Supervisory Service commissions study on global stablecoin legislation, focusing on stablecoin AML measuresAccording to CoinNess reports, South Korea’s Financial Services Commission (FSC) subsidiary Financial Intelligence Unit (FIU) commissioned the second phase of virtual asset legislation research on August 6, focusing on anti-money laundering (AML) measures for stablecoins. The FSC stated that upcoming regulations are expected to bring stablecoins into the regulatory framework, allowing their use for payments and cross-border transfers. This research will examine global stablecoin regulatory approaches and study applicable anti-money laundering and counter-terrorist financing (CFT) standards.Read more: https://coinness.com/zh/news/79489
Partnerships & Ecosystem Expansion
South Korean company fanC partners with Initech for Korean won stablecoin KRWIN pilotSouth Korean digital token developer and issuer fanC has partnered with local financial software company Initech to pilot a Korean won stablecoin called KRWIN, pegged 1:1 to the Korean won. This is the first digital asset issued by a private entity based on the Korean won with potential real economic applications. fanC stated that this is a demonstration version designed to test KRWIN’s technical feasibility, including transferability and practical applications. The issuance scope will be limited to internally selected members and partner platforms for evaluation. Once officially launched, KRWIN is expected to be applied in payments, global remittances, tourism, and other fields.Read more: https://www.binance.com/en/square/post/08-06-2025-fanc-initech-krwin-27938721925458
KakaoBank considering stablecoin issuance and custody services, plans to “actively participate” in cryptocurrency marketThe banking arm of South Korean IT giant Kakao Corporation is accelerating its stablecoin service plans amid a shifting regulatory environment following the country’s election of crypto-friendly president Lee Jae-myung. KakaoBank applied for stablecoin-related trademarks on June 23, simultaneously with competitor KB Financial Group subsidiary Kookmin Bank. Eight other major South Korean banks also plan to launch Korean won-pegged stablecoins by 2026.Read more: https://cointelegraph.com/news/kakao-bank-stablecoin-plans-south-korea-crypto
Huobi HTX partners with WLFI, becomes USD1 points program partnerHuobi HTX announced a partnership with World Liberty Financial (WLFI), becoming one of the first partners in its USD1 points program. The USD1 points program is a points reward mechanism specifically designed for the USD1 stablecoin, where users can earn points through trading, holding, or staking USD1.Read more: https://www.prnewswire.com/news-releases/htx-partners-with-world-liberty-financial-to-support-usd1-points-program-302524437.html
Animoca and Standard Chartered form stablecoin joint venture in Hong KongStandard Chartered Bank Hong Kong and Animoca Brands launched joint venture Anchorpoint Financial to develop licensed Hong Kong dollar stablecoins. This joint subsidiary will be responsible for establishing business models focused on issuing and advancing licensed stablecoins. According to the announcement, Anchorpoint Financial formally expressed interest in obtaining a stablecoin license to the Hong Kong Monetary Authority (HKMA) on August 1.Read more: https://cointelegraph.com/news/standard-chartered-animoca-brands-hong-kong-stablecoin-license
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.
Website: www.mathwallet.org | www.stablewallet.ai
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.
