Global Stablecoin Newsletter#07
Global Stablecoin Market Overview
Total Market Cap: $296.65 B7-Day Change: +$4.8 B / +1.65%The global stablecoin market cap is approaching $300 billion, with a $5 billion increase over 7 days, representing a growth of 1.65%. From a market structure analysis, USDT still dominates, but its market share has continued to slowly decline from a peak of nearly 70% to the current 58%, with market cap breaking through $173 billion, currently at $173.4 billion. USDC ranks second with a market cap of $74.7 billion, increasing 1.59% over the past week. USDE, DAI, and USDS rank third through fifth respectively, with USDE showing active performance, increasing 5.57% over the past week.Data source: defillama
Key Highlights
· US Treasury opens second round of public comment on GENIUS Act → Pushing stablecoin legislation into substantive regulatory phase· Tether announces plans to launch USA₮ → US-regulated USD stablecoin, appointing former White House crypto committee executive director as CEO· Google partners with Coinbase to introduce stablecoin payments → Google launches AI inter-app payment protocol· PayPal extends PYUSD to 8 blockchains → Adding support for Tron, Avalanche, Sei and other networks· Circle strategically invests in Hyperliquid ecosystem → Deploying native USDC and cross-chain transmission protocol CCTP V2 to HyperEVM and HyperCore· Coinbase integrates Morpho lending protocol → Providing up to 10.8% DeFi yield for USDC· South Korea regulators disclose suspicious crypto transactions hit historic high → Suspicious transaction reports reach 30,000 cases· Hong Kong Monetary Authority issues new crypto regulations → Releases “Crypto Asset Classification” consultation draft· Kazakhstan partners with Solana to launch Evo stablecoin → Launching KZTE stablecoin project pegged to tenge within central bank regulatory sandbox· AxCNH: World’s First Licensed Offshore Chinese Yuan-Pegged Stablecoin Debuts at the 10th Belt and Road Summit
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
Tether Announces Plans to Launch USA₮Tether announced plans to launch the US-regulated USD stablecoin USA₮, appointing former White House Crypto Committee Executive Director Bo Hines as future CEO of Tether USA₮. USA₮ will comply with the latest US stablecoin regulation GENIUS Act, issued by Anchorage Digital, with reserves custodied by Cantor Fitzgerald, and leveraging Tether’s global distribution network.Read more: https://tether.io/news/tether-unveils-usat-its-planned-u-s-regulated-dollar-backed-stablecoin-and-will-appoint-bo-hines-as-ceo-of-tether-usat/Google Partners with Coinbase to Bring Stablecoin Payments to AI ApplicationsAccording to BiyaPay analysts, Google launched a new payment protocol on September 16, aimed at enabling seamless fund transfers between AI applications. The protocol not only supports traditional payment methods like credit and debit cards but also specifically integrates USD-pegged stablecoin functionality. To ensure stablecoin compatibility, Google partnered with Coinbase and the Ethereum Foundation, consulting over 60 institutions including Salesforce and American Express. This move is an extension of Google’s AI agent communication standard released in April, aimed at ensuring the security and reliability of AI transactions.Read more: https://finance.yahoo.com/news/google-adds-stablecoin-support-ai-171417612.htmlPayPal Expands PYUSD Stablecoin to Tron, Avalanche, and 6 Other BlockchainsPayPal’s stablecoin PayPal USD (PYUSD) is expanding to multiple new blockchain networks including Tron, Avalanche, and Sei through integration with LayerZero’s Stargate Hydra cross-chain bridge. PYUSD is issued by Paxos Trust Company, originally launched natively on Ethereum, later expanded to Solana and Arbitrum, and yesterday added the Stellar network. LayerZero announced Thursday that with this expansion, a permissionless version token called “PYUSD0” will be introduced to seven additional blockchain networks: Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron. Additionally, PYUSD’s existing cross-chain versions on Berachain and Flow will also be upgraded to PYUSD0.Read more: https://cointelegraph.com/news/paypal-adds-pyusd-on-new-blockchains-layerzeroZelle Exploring Introduction of Stablecoin Services for Retail Banking CustomersAccording to Crowdfund Insider, Early Warning Services (EWS), the parent company of US P2P payment platform Zelle, is considering entering the crypto space by exploring the possibility of issuing its own stablecoin. Meanwhile, EWS is researching the infrastructure needed to create and issue stablecoins for everyday banking users. EWS is backed by institutions including Bank of America, JPMorgan Chase, Wells Fargo, and PNC.Read more: https://www.fintech.am/zelle-stablecoin/?lang=enCircle Strategically Invests in Hyperliquid Stablecoin Ecosystem, Simultaneously Launches Native USDCCircle announced it will deploy the native version of its stablecoin USDC along with its cross-chain transmission protocol CCTP V2 to Hyperliquid’s ecosystem. The purpose is to enable USDC to be directly deposited and withdrawn on HyperEVM and HyperCore, serve as settlement/reference assets in applications, and be used for trading, lending, market making and other DeFi activities. The deployment of USDC+CCTP V2 on Hyperliquid is in progress.Read more: https://cryptoast.fr/coup-theatre-circle-investit-massivement-hyperliquid-maintient-usdc-protocole/Coinbase Integrates Morpho Lending Protocol, Providing Up to 10.8% DeFi Yield for USDCCryptocurrency exchange Coinbase Global (COIN.US) revealed it is launching an on-chain lending product. Users who deposit USDC stablecoin can earn up to 10.8% yield. The exchange stated in a blog post that the new feature will gradually roll out to users in the US, Bermuda, and other countries in the coming weeks. When users deposit USDC, Coinbase creates smart contract wallets that connect to the Morpho protocol through on-chain vaults managed by Steakhouse Financial, with funds allocated to multiple lending markets. Users can use and withdraw funds at any time. Coinbase currently provides users with 4.1% annual yield on USDC passive income, with Coinbase One members enjoying 4.5% annual yield.Read more: https://coinmarketcap.com/academy/article/coinbase-launches-usdc-on-chain-lending-feature-with-108percent-yieldsMoneyGram Launches Stablecoin Application in ColombiaMoneyGram announced the launch of its next-generation app based on USDC stablecoin in Colombia, allowing users to receive and hold USD stablecoins through the application. The app is powered by Circle’s USDC, Stellar blockchain, and Crossmint wallet technology. MoneyGram plans to expand to more markets subsequently and currently has over 6,000 locations in Colombia. The company stated that stablecoins provide users with stable currency and real-time settlement capabilities.Read more: https://www.coindesk.com/business/2025/09/17/moneygram-makes-stablecoins-the-backbone-of-its-next-generation-appNubank Plans to Integrate Stablecoins into Credit Card TransactionsLatin America’s largest digital bank Nubank plans to integrate USD-pegged stablecoins with credit card payments. The bank’s Vice Chairman and former Brazilian Central Bank Governor Roberto Campos Neto pointed out that people buy stablecoins more as a store of value rather than a transaction tool, and the bank’s challenge is how to accept tokenized deposits and use them to extend credit to customers.Read more: https://finance.yahoo.com/news/latin-america-largest-digital-bank-070310758.htmlMinnesota Credit Union Announces Launch of Stablecoin, Claims to be First in the USSt. Cloud Financial Credit Union (SCFCU), a Minnesota-based institution with over $400 million in assets, plans to launch a proprietary stablecoin, claiming it to be the first stablecoin from a US credit union. The token, named Cloud Dollar (CLDUSD), is being developed jointly by blockchain company Metallicus and fintech provider DaLand CUSO, and is expected to debut in the last quarter of 2025 as part of the credit union’s digital asset vault service.Read more: https://finance.yahoo.com/news/minnesota-credit-union-launch-stablecoin-150051871.htmlNative Markets Team Wins Hyperliquid USDH Stablecoin Issuance Rights and Goes LiveHyperliquid’s native stablecoin USDH went live Wednesday with a USDC trading pair, with early trading volume approaching $2 million. With USDH’s launch, Hyperliquid now has its first USD-pegged asset, providing traders with a stable unit of account and collateral across networks. Native Markets will manage the exchange’s stablecoin and oversee potentially billions of dollars in capital flows. This crypto startup, led by Hyperliquid investor Max Fiege, former Uniswap Labs President Mary-Catherine Lader, and blockchain researcher Anish Agnihotri, was selected through a September 14 validator vote. According to Native Markets’ original proposal, the stablecoin is backed by cash and US Treasury equivalents and will rely on Stripe’s tokenization platform Bridge to manage reserves.Read more: https://cointelegraph.com/news/hyperliquid-stablecoin-goes-live-after-fierce-bidding-issuance-rightsKraken Expands Usage of USDC and EURC with CircleCircle (CRCL.US) announced it will partner with cryptocurrency trading platform Kraken to expand the usage channels of its issued USDC and EURC stablecoins on the Kraken platform, aiming to increase adoption of these two stablecoins and open new opportunities for on-chain financial applications. Through this partnership, Kraken users will enjoy higher liquidity, lower conversion fees, and more flexible use of USDC within the Kraken ecosystem. Kraken will also list Circle’s fully-reserved euro stablecoin EURC.Read more: https://www.circle.com/pressroom/kraken-and-circle-partner-to-accelerate-global-access-and-utility-of-usdc-and-eurcLitFinancial Launches Ethereum-based Stablecoin to Optimize Mortgage ProcessesMichigan mortgage lender LitFinancial launched the USD stablecoin litUSD on the Ethereum blockchain, backed by 1:1 cash reserves. The company plans to use the stablecoin to reduce funding costs, improve financial management, and explore on-chain settlement of mortgages, making loan performance publicly trackable.Read more: https://www.coindesk.com/business/2025/09/10/litfinancial-introduces-stablecoin-on-ethereum-to-streamline-mortgage-lendingBastion Completes $14.6M Funding Round Led by Coinbase, with Sony, Samsung, A16z and Others ParticipatingStablecoin infrastructure startup Bastion announced Wednesday it has completed a $14.6 million funding round led by Coinbase Ventures. According to Wednesday’s announcement, the round also included participation from Japanese tech giant Sony, Korean phone manufacturer Samsung’s investment arm, venture capital firm Andreessen Horowitz’s crypto division, and crypto VC firm Hashed. Bastion is developing a platform that allows companies to issue stablecoins without needing to obtain their own licenses or build custom infrastructure.Read more: https://cointelegraph.com/news/coinbase-leads-14-6m-funding-round-for-stablecoin-startup-bastionStablecore Completes $20M Funding to Bring Stablecoins, Tokenized Deposits and Digital Assets to Banking and Credit Union SystemsDigital asset platform Stablecore announced completion of $20 million in funding to help community banks and credit unions access stablecoin and tokenized deposit services. The round was led by Norwest, with participation from Coinbase Ventures, Curql, BankTech Ventures, Bank of Utah, and others, involving over 290 banks and credit unions.Read more: https://www.businesswire.com/news/home/20250915212664/en/Stablecore-Raises-%2420M-to-Bring-Stablecoins-Tokenized-Deposits-and-Digital-Assets-into-Banks-and-Credit-UnionsKredete Completes $22M Series A Funding, Plans to Expand Africa’s Credit Building Infrastructure Through Stablecoin TransfersFintech company Kredete announced completion of a $22 million Series A funding round led by AfricInvest’s CAIF and FIVE funds, with participation from Partech, Polymorphic Capital, and others. Founded in 2023, Kredete is dedicated to helping African immigrants improve credit ratings and enhance cross-border remittance experiences through stablecoin payments and credit building tools. The new funding will support its expansion into Canadian, UK, and European markets.Read more: https://portalerp.co.za/public/kredete-secures-22m-series-a-to-scale-african-diaspora-credit-solutions-with-stablecoin-technologyMoonPay Acquires Meso to Accelerate Global Payment LayoutMoonPay announced in a statement Monday that it has acquired payment startup Meso, a deal that supports its goal of building an international payment network connecting banks, card systems, stablecoins, and blockchains under a unified regulatory framework covering major US licenses and the European MiCA regime. MoonPay co-founder and CEO Ivan Soto-Wright stated: “We have built trusted channels that have brought millions of dollars to cryptocurrency, and now we are building a global network to move money in various forms and markets.”Read more: https://www.moonpay.com/newsroom/meso-acquisitionYZiLabs Deepens Investment in Stablecoin Issuer Ethena to Accelerate USDe AdoptionYZi Labs announced expansion of its holdings and strategic support for Ethena Labs. This support will drive further application of USDe on centralized and decentralized platforms, expand to BNB Chain, and advance the implementation of new product USDtb and institutional settlement layer Converge. Currently, Ethena TVL has exceeded $13 billion.Read more: https://cointelegraph.com/news/yzi-labs-grows-stake-in-stablecoin-company-ethena
Eastern Stablecoin Updates
Regulations & Policies
South Korea Regulators Disclose 2025 Suspicious Crypto Transaction Volume Hits Historic HighData from Korea’s Financial Intelligence Unit (FIU) shows that from January to August 2025, virtual asset service providers submitted 36,684 suspicious transaction reports (STR), already exceeding the total of the past two years. During the same period, virtual asset-related crime amounts reached 9.56 trillion won, with “underground banking” type crimes accounting for over 90%. Recently, stablecoins like USDT have been used for illegal cross-border fund transfers, and relevant departments are strengthening tracking and regulation.Read more: https://cryptonews.net/en/news/legal/31663902/Hong Kong Monetary Authority (HKMA) Issues New Hong Kong Crypto RegulationsThe Hong Kong Monetary Authority (HKMA) issued a consultation draft of the new module CRP-1 “Crypto Asset Classification” in the “Supervisory Policy Manual” (SPM) to the local banking industry, aiming to align with international regulatory standards by establishing a regulatory system that balances innovation development with risk prevention, providing clear guidance for banks’ participation in crypto asset-related businesses.Read more: https://www.coindesk.com/policy/2025/09/25/hong-kong-monetary-authority-warns-against-unregulated-stablecoin-issuanceLee Ka-chiu: Hong Kong is implementing the stablecoin issuer systemHong Kong Chief Executive John Lee stated in his fourth Policy Address that the HKMA will promote commercial banks to launch tokenized deposits and facilitate real tokenized asset trading. For example, using tokenized deposits to settle tokenized money market funds, assisting the government in regularizing tokenized bond issuance, and encouraging banks to strengthen risk management through regulatory sandboxes.Read more: https://www.mexc.fm/news/lee-ka-chiu-hong-kong-is-implementing-the-stablecoin-issuer-system/99344Hong Kong AFRC: Comprehensive Stablecoin Audit and Accounting Treatment Guidelines Expected Within 1–3 YearsHong Kong Accounting and Financial Reporting Council Chairman Clement Sun indicated that Hong Kong’s stablecoin industry is still in its early stages, and hastily formulating numerous detailed audit standards now could be detrimental to the industry. He expects Hong Kong may issue comprehensive stablecoin audit and accounting treatment guidelines 1 to 3 years from now. According to Hong Kong’s “Stablecoin Ordinance” that took effect on August 1, licensed stablecoin issuers must undergo annual independent audits to ensure transparency and compliance. Sun stated that Hong Kong AFRC may only indirectly participate in stablecoin regulation, adopting a prudent regulatory strategy for stablecoins similar to virtual bank (now called digital bank) licensing, clarifying how to audit licensed institutions and how to recognize, measure, and disclose in financial statements.Read more: https://www.thestandard.com.hk/market/article/311539/Rushed-stablecoin-audit-rules-could-kill-industry-chief-of-Hong-Kongs-accounting-regulator-saysKazakhstan Central Bank Partners with Solana and Mastercard to Launch Evo (KZTE) StablecoinThe National Bank of Kazakhstan announced the launch of a stablecoin project within its digital asset regulatory sandbox framework. The new Evo (KZTE) stablecoin is pegged to the Kazakh tenge, issued by sandbox participant Intebix cryptocurrency exchange and local lending institution Eurasian Bank, with assistance from Solana and Mastercard. The Solana blockchain-based KZTE has officially launched within the central bank’s regulatory sandbox, with Mastercard connecting KZTE to global stablecoin issuers.Read more: https://cointelegraph.com/news/kazakhstan-solana-mastercard-stablecoin-kzte
Partnerships & Ecosystem Expansion
South Korea’s First Won-Pegged Stablecoin KRW1 Launches on Avalanche ChainSouth Korea’s BDACS launched KRW1, the first stablecoin backed by Korean won, on Avalanche. The stablecoin is fully collateralized by Korean won deposited at Woori Bank and was officially released after successfully completing proof of concept.Read more: https://finance.yahoo.com/news/bdacs-launches-won-backed-stablecoin-095731872.htmlToyota, Yamaha, BYD Accept Tether (USDT) Payments in Bolivia to Address Country’s Dollar Reserve DepletionTether CEO Paolo Ardoino posted that Toyota, BYD, and Yamaha in Bolivia now support USDT payments. He stated that USDT has become the “digital dollar” for hundreds of millions of people in emerging markets and is accelerating adoption.Read more: https://finance.yahoo.com/news/toyota-byd-yamaha-now-accept-135720984.htmlAxCNH: World’s First Licensed Offshore Chinese Yuan-Pegged Stablecoin Debuts at the 10th Belt and Road SummitAnchorX, an institution licensed in Kazakhstan, launched a stablecoin AxCNH pegged to offshore RMB. On September 17, AxCNH was officially issued in Hong Kong. This marks the birth of the world’s first regulatory-licensed offshore RMB stablecoin, aimed at providing new convenient payment settlement tools for cross-border transactions.Read more: https://en.cryptonomist.ch/2025/09/22/axcnh-the-first-licensed-cnh-stablecoin-for-24-7-cross-border-payments/https://www.reuters.com/press-releases/anchorx-axcnh-first-licensed-offshore-yuan-pegged-stablecoin-belt-and-road-summit-2025-09-17/—————————————————————————————————————————————————————————————————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.
