Global Stablecoin Newsletter#06
Global Stablecoin Market Overview
Total Market Cap: $287.24B7-Day Change: +$1.64 B / +0.58%On the market side, USDT remains firmly at the top with a market cap of $169.4B, accounting for 59%; USDC has been active on the institutional side this period, with a market cap of approximately $72B, continuing to hold its position as the representative of compliant stablecoins. Emerging stablecoins like USDe are also growing. USD1’s market cap broke through $2.6B again this period, accounting for 0.93%, showing significant growth. Its upward momentum mainly comes from recent minting of approximately $100M new coins on Solana chain, accelerated cross-chain deployment, and support from major exchanges.Overall, the stablecoin market continues to maintain high enthusiasm driven by gradually clarifying regulatory environment, compliance, and the promotion of multi-chain deployment and institutional applications. Among them, established stablecoins are making steady progress, while projects like USD1 are rapidly gaining momentum by seizing on-chain expansion and institutional infrastructure opportunities.Data source: defillama
Key Highlights
· Federal Reserve to hold payment innovation conference on October 21 → Discussing stablecoin use cases, AI-payment integration, and tokenization· EU strengthens calls for foreign stablecoin regulation → ECB President calls for strict equivalence regulatory measures for non-EU stablecoins· US “GENIUS Act” sparks controversy → Concerns over reward interest loopholes, banking industry pushes to fix the loophole· Hyperliquid USDH stablecoin issuance rights battle → Ten major institutions compete for $220 million annual revenue stream· Ethena’s USDe stablecoin supply soars to $12 billion → Over 15% of USDC· Paxos releases USDH proposal V2 → PayPal and Venmo join ecosystem, supporting free USDH redemption· Japan Post Bank to launch tokenized yen in 2026 → $1.3 trillion deposit scale· ICBC Asia and HSBC have expressed application intentions for stablecoin licenses to Hong Kong Monetary Authority· PetroChina closely monitors Hong Kong stablecoin license → Becomes first traditional energy giant to respond, studying cross-border payment feasibility
Western Stablecoin Updates
Regulations & Policies
Federal Reserve to hold payment innovation conference on October 21The US Federal Reserve announced Wednesday that it will host a conference on payment innovation on October 21. The Fed stated that this conference will explore multiple emerging topics, including stablecoin use cases, the intersection of artificial intelligence and payments, and tokenization of financial products and services.Read more: https://www.reuters.com/sustainability/boards-policy-regulation/fed-announces-october-conference-payments-innovation-2025-09-03/EU strengthens calls for foreign stablecoin regulationEuropean Central Bank President Christine Lagarde called on EU lawmakers to establish strict “equivalence” regulatory measures for stablecoins issued by non-EU entities, to prevent the risk of concentrated redemptions during financial stress periods that could deplete EU domestic reserves. She emphasized that domestic and foreign issuers should comply with equally high standards and called for international cooperation to prevent regulatory arbitrage and financial stability risks.Read more: https://www.reuters.com/business/finance/ecbs-lagarde-says-eu-should-close-loopholes-stablecoin-regulation-2025-09-03/US “GENIUS Act” sparks controversy — Concerns over “reward interest” loopholesThe US Congress-passed “GENIUS Act” (National Stablecoin Innovation Act) requires stablecoins to be fully backed by cash or short-term Treasury bonds, prohibits interest payments, and emphasizes transparency and anti-money laundering measures. However, the “reward” mechanism in the act may allow exchanges to provide stablecoin holding rewards (similar to interest), raising banking industry concerns that this could attract deposit outflows, thereby affecting banks’ lending capacity. The banking industry is pushing for legislation (such as the “CLARITY Act”) to fix this loophole.Read more: https://www.wired.com/story/genius-act-loophole-stablecoins-banks/?utm_source=chatgpt.comUkrainian parliament passes cryptocurrency legalization and taxation bill in first readingUkrainian MP Yaroslav Zhelezniak stated that Ukraine’s parliament passed a bill on cryptocurrency legalization and taxation in first reading on Wednesday. The draft bill stipulates an 18% income tax and 5% military tax on digital asset profits. The bill provides a preferential 5% tax rate for the first year of digital asset-to-fiat conversion. Zhelezniak stated: “There’s little point in detailed discussion now, there will be many changes before the second reading. It’s currently unclear whether the regulator is the National Bank of Ukraine or the National Securities and Stock Market Commission.”Read more: https://finance.yahoo.com/news/ukraine-parliament-passes-first-reading-102435792.html
Partnerships and Ecosystem Expansion
Citi says stablecoins and AI could drive post-trade market transformationAccording to Citi’s latest “Evolution of Securities Services” white paper, the global post-trade industry is entering a new transformation phase driven by digital assets and artificial intelligence. Citi estimates that by 2030, 10% of market trading volume could be conducted through tokenized assets. The report notes that bank-issued stablecoins are a major driving factor, helping improve collateral efficiency and capital tokenization. The Asia-Pacific region is already leading in adoption due to strong retail interest in cryptocurrencies and regulatory support for digital assets.Read more: https://www.coindesk.com/business/2025/09/02/citi-says-stablecoins-and-ai-could-drive-post-trade-shakeupHyperliquid USDH stablecoin issuance rights battleOn September 5, decentralized exchange Hyperliquid publicly auctioned the issuance rights for its native stablecoin USDH, attracting fierce competition from ten major institutions including Ethena Labs, Paxos, Frax Finance, and Sky Ecosystem, competing for an annual revenue stream of up to $220 million. The winner will control the issuance rights for USDH, which is expected to reach billions of dollars in scale, and receive approximately $220 million in annual reserve revenue sharing. The proposal submission deadline was September 10 at 10:00 UTC, with validator voting starting September 14. Voting weight is calculated by staking amount, with the foundation substantially abstaining to ensure a community-led decision process. According to the latest bidding predictions, based on September 10 Polymarket prediction data, Native Markets leads with a 74% winning rate, Paxos ranks second with a 15% winning probability, and Ethena ranks third with a 12% winning probability.Read more: https://www.bitget.com/en/amp/news/detail/12560604959425Ethereum scaling solution MegaETH announces partnership with Ethena to launch stablecoin USDmEthereum scaling solution MegaETH announced a partnership with Ethena to launch stablecoin USDm, aimed at replacing the traditional sequencer markup model with stablecoin reserve yields to pay for sequencer operating costs, thereby reducing and stabilizing transaction costs. The first batch of USDm will be issued based on Ethena’s USDtb system, with reserves including BlackRock’s BUIDL Treasury fund and liquid stablecoins. Currently, USDm does not support direct fiat redemption and can only be exchanged for USDtb. MegaETH stated that other revenue mechanisms such as MEV will be further disclosed before mainnet launch.Read more: https://www.coindesk.com/business/2025/09/08/megaeth-unveils-native-stablecoin-with-ethena-aiming-to-keep-blockchain-fees-lowEthena's USDe stablecoin supply soars to $12 billion, over 15% of USDCUSDe has become a strong competitor challenging USDC and USDT dominance, with its unique selling point as a yield-bearing crypto-native stablecoin providing 9%-11% annualized returns through delta-neutral hedging strategies; USDe maintains stablecoin peg through delta-neutral strategies between ETH/BTC collateral and short futures positions, generating yields from positive funding rates in the current bull market environment; supply expansion is mainly driven by sophisticated yield amplification strategies: users stake USDe as sUSDe, tokenize it on Pendle, then create recursive lending loops through Aave to achieve leveraged yields, with large amounts of USDe locked in Pendle and Aave.Read more: https://www.theblock.co/post/368677/ethenas-usde-stablecoin-surges-to-12-billion-supply-fueled-by-leveraged-yield-loops-on-pendle-and-aaveTether denies Bitcoin selling rumors, confirms continued investment in BTC, gold, and landTether CEO Paolo Ardoino tweeted that “Tether has not sold any Bitcoin.” He emphasized that reports about Tether selling BTC to buy gold are incorrect, and the actual situation is that Tether has deployed some Bitcoin to the XXI project and will continue to invest profits in safe assets such as Bitcoin, gold, and land.Read more: https://cointelegraph.com/news/tether-denies-bitcoin-sell-off-invests-btc-gold-landPaxos releases USDH proposal V2: PayPal and Venmo join ecosystemStablecoin issuer Paxos released USDH proposal V2 on September 10, with three major upgrades including: partnership with PayPal, HYPE listing on PayPal/Venmo, supporting free USDH redemption, $20 million ecosystem incentives and global payment integration; PayPal will integrate USDH into Checkout, Braintree, Venmo, Hyperwallet, and Xoom, with Paxos charging at most 5% fees only after USDH TVL meets targets, with all fees paid in HYPE; global compliance expansion, Paxos has legal stablecoin issuance capability and will promote USDH’s global issuance in compliant markets such as Europe, driving Hyperliquid DeFi adoption.Read more: https://finance.yahoo.com/news/paxos-proposal-hyperliquid-usdh-stablecoin-111703191.htmlRipple brings $700 million RLUSD stablecoin to Africa, pilots extreme weather insurance projectPayment-focused digital asset company Ripple is expanding its USD-based stablecoin Ripple USD (RLUSD) to African institutions through new partnerships with distributors Chipper Cash, VALR, and Yellow Card. Ripple’s expansion comes as stablecoins emerge as a cheaper, faster alternative to traditional payment channels, especially in emerging markets where access to reliable currency and banking services is often limited.Read more: https://www.coindesk.com/business/2025/09/04/ripple-brings-usd700m-rlusd-stablecoin-to-africa-trials-extreme-weather-insurancesReflect announces $3.75 million funding led by a16z crypto CSXReflect announced completion of $3.75 million funding led by a16z crypto CSX, with participation from Solana Ventures, Equilibrium, Big Brain VC, and Colosseum, and launched new yield-bearing stablecoin USDC+ on Solana. The project aims to solve current stablecoins’ reliance on off-chain rate mechanisms and low on-chain capital efficiency, allowing users and developers to directly capture on-chain mainstream asset yields through stablecoins, thereby removing intermediaries and improving capital efficiency. Reflect stated it has opened a waitlist for non-custodial stablecoin issuance.Read more: https://www.theblockbeats.info/en/flash/310475Obita raises $10 million to build a stablecoin-based cross-border payment networkCross-border payment and digital finance network company Obita completed $10 million angel round funding, with funds to be used for R&D, compliance infrastructure construction, and market expansion, accelerating deployment of its stablecoin-based cross-border payment network; Obita is building a blockchain-native payment network under its “Obita Mesh” framework, integrating enterprise-level compliance systems, cross-border clearing networks, and unified fund management tools to solve industry pain points such as high forex costs, settlement delays, and insufficient capital flow transparency; the company will initially focus on high-growth markets such as Central Asia, Southeast Asia, Africa, and Latin America, mainly serving cross-border trade, e-commerce, and supply chain platforms.Read more: https://coincentral.com/obita-secures-10m-to-power-stablecoin-driven-cross-border-payments/AI company Kite raises $18 million co-led by PayPal Ventures to build agent AI and stablecoin payment infrastructureAI company Kite completed $18 million Series A funding co-led by General Catalyst and PayPal Ventures, bringing total funding to $33 million, to expand its stablecoin-based autonomous agent trading platform. Kite’s flagship product Kite AIR (Agent Identity Resolution) provides AI agents with verifiable identity, policy protection, and programmable payment rails, enabling them to use stablecoins for authentication, payment, and interaction. Through integration with Shopify and PayPal, any merchant can choose to open discovery features to AI shopping agents, with purchases settled through on-chain stablecoins, avoiding high transaction fees of traditional payments. Kite positions itself as the default stablecoin payment layer for autonomous agents.Read more: https://cointelegraph.com/news/paypal-ventures-backs-kite-ai-with-18m-to-power-ai-agents
Eastern Stablecoin Updates
Regulations & Policies
Hong Kong proposes easing capital rules for banks holding crypto reportThe Hong Kong Monetary Authority has circulated a draft guidance to the banking sector, proposing softer capital requirements for banks holding certain crypto assets, Caixin reported. Under the proposed rules, crypto assets built on permissionless blockchain networks could potentially qualify for lower bank capital requirements if their issuers implement effective risk management measures.Read more: https://www.theblock.co/post/370286/hong-kong-bank-capital-requirements-regulated-crypto-assets?utm_source=companies.xml&utm_medium=rssHong Kong regulator receives 77 expressions of interest for stablecoin licensesAccording to Hong Kong Economic Journal, a HKMA spokesperson stated that as of August 31, 77 institutions have expressed intention to apply for stablecoin licenses to the HKMA, including banks, tech companies, securities/asset management/investment companies, e-commerce, payment institutions, startups/web3 companies, etc. The HKMA spokesperson reiterated that in the initial phase of regulation implementation, only a few stablecoin licenses will be issued.Read more: https://www.thestandard.com.hk/market/article/310475/ICBC Asia and HSBC have expressed application intentions for stablecoin licenses to Hong Kong Monetary AuthorityAccording to Hong Kong Economic Journal citing unnamed sources, ICBC Asia and HSBC have expressed application intentions for stablecoin licenses to the Hong Kong Monetary Authority. It’s currently unclear whether HSBC will formally submit an application before the end of this month.Read more: https://cointelegraph.com/news/hsbc-icbc-hong-kong-stablecoin-licenseTop economists and bankers expect Bank of Japan rate hike, yen-backed stablecoins well-timedJapan’s Financial Services Agency (FSA) may approve the first yen stablecoin as early as this autumn, with Tokyo fintech company JPYC planning to register as a remittance business and launch a 1:1 yen-pegged stablecoin. Top bankers and economists expect the Bank of Japan (BOJ) to raise rates in Q4, with Hokuriku Financial Group head Hiroshi Nakazawa stating BOJ may raise rates in October or December, following the central bank’s two rate hikes in July last year and January this year. Japanese government bond yields have climbed to multi-decade highs, with 30-year bond yields exceeding 3.2% and 10-year bond yields reaching 1.64%, the US-Japan 10-year yield spread narrowed to 2.62%, the lowest since August 2022, suggesting yen appreciation.Read more: https://thedefiant.io/news/regulation/japan-fsa-clears-jpyc-first-yen-pegged-stablecoin-fall-launch-b7bb25daFormer People’s Bank of China Governor Zhou Xiaochuan: Multi-dimensional examination of stablecoinsFormer People’s Bank of China Governor Zhou Xiaochuan delivered a speech titled “Challenges and Potential Risks of Digital Currencies” at ICMA’s 57th Frankfurt Annual Meeting, pointing out challenges and potential risks facing digital currency implementation, especially stablecoins. In his conclusion, he emphasized that digital currency development has enormous potential in improving efficiency and reducing costs, but risks cannot be ignored. If these risks cannot be effectively identified and prudently managed, the long-term sustainable development of stablecoins will face severe challenges.Read more: https://www.scmp.com/economy/china-economy/article/3323414/former-china-central-bank-governor-urges-caution-amid-stablecoin-frenzyKazakhstan AFSA announces launch of first pilot project for paying regulatory fees with stablecoinsKazakhstan’s financial regulator AFSA announced the launch of the first pilot project for paying regulatory fees with stablecoins, allowing market participants to complete compliance payments through authorized payment agents using USD-pegged stablecoins. Bybit Kazakhstan became the first participant, having signed a cooperation memorandum with AFSA during the Astana Finance Days 2025 event.Read more: https://cointelegraph.com/news/kazakhstan-accept-regulatory-fees-usd-stablecoinsKyrgyzstan introduces national cryptocurrency reserve concept in new billKyrgyz legislators passed the “Virtual Assets Law” amendment through three readings, defining terms such as national cryptocurrency reserves and national cryptocurrency mining. The bill, proposed by Economy and Commerce Minister Bakyt Sydykov, covers multiple aspects of Kyrgyzstan’s cryptocurrency adoption, including establishing legal frameworks for stablecoin issuance and circulation, tokenized real-world assets (RWA), and state-operated industry operations.Read more: https://www.mitrade.com/insights/news/live-news/article-3-1111939-20250910
Partnerships & Ecosystem Expansion
Japan Post Bank ($1.3 trillion deposits) to launch tokenized yen in 2026Japan Post Bank said Monday it will launch digital yen by the end of fiscal 2026 to facilitate digital financial transactions for depositors. This move highlights how more Japanese domestic entities are using blockchain technology to streamline financial transactions. Japan Post Bank is Japan’s largest retail deposit bank, with 120 million depositor accounts holding approximately 190 trillion yen (about 9.19 trillion yuan) in deposits.Read more: https://www.reuters.com/business/media-telecom/japan-post-bank-launch-digital-yen-2026-2025-09-01/PetroChina: Closely monitoring Hong Kong stablecoin license, studying cross-border payment feasibilityPetroChina (00857.HK) revealed at its interim results conference that it is closely monitoring Hong Kong Monetary Authority’s stablecoin license policy and plans to launch feasibility studies on cross-border settlement and payments using stablecoins. As one of China’s largest energy state-owned enterprises, PetroChina becomes the first traditional energy giant to publicly respond to Hong Kong’s “Stablecoin Ordinance.”Read more: https://www.bitget.com/asia/news/detail/12560604938867————————————————————————————————————————————————————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.
