Original Title: "Cobo Stablecoin Weekly Report NO.13 | Payment Giants' Strategic Shift: Why Mastercard and Fiserv Embrace Stablecoins, How Will Traditional Card Networks Be Rewritten?"

In highly developed financial markets such as the United States, stablecoins struggle to bring significant efficiency gains; while in underbanked regions like Nigeria, Argentina, the Philippines, stablecoins have become a practical solution for cross-border payments and asset preservation. Tether made a breakthrough in such "market failures," generating over $13 billion in profit in 2024. Today, Tether has abandoned its strategy of replicating the Southern Playbook in the U.S. and shifted towards building an AI wallet, IoT interfaces, and a programmable payment SDK, exploring a new generation of a "digital operating system."

If Tether's strategy embodies the adaptive nature of stablecoins to different financial ecosystems, then the moves by Mastercard and Fiserv signify that traditional institutions are strategically incorporating stablecoin capabilities to respond to the structural trend of stablecoin annual transaction volume surpassing $27.6 trillion, exceeding the combined total of Visa and Mastercard. Meanwhile, regulatory risks intensify: a SlowMist report revealed that "Huobi Pay" on the TRON network is suspected of involvement in over 500 billion USDT of illicit fund flows, exposing its systemic risk; Russia is accelerating the development of a national stablecoin and an independent exchange for cross-border payment networks, aiming to bypass the SWIFT system and the U.S. dollar.

Stablecoins are becoming the intersection of industry opportunities, geopolitical competition, and regulatory reshaping.

Market Overview and Growth Highlights

The total market capitalization of stablecoins reached $252.937 billion, with a weekly increase of $1.165 billion. In terms of market share, USDT continues to dominate with 62.57%, followed by USDC in second place, with a market cap of $61.37 billion, representing 24.26%.

Top Three Blockchain Networks by Stablecoin Market Value Distribution:

Ethereum: $125.685 billion

Tron: $80.794 billion

BSC: $10.474 billion

Top 3 Fastest-Growing Networks of the Week:

Movement: +25.43% (USDC accounts for 64.15%)

Algorand: +17.44% (USDC Dominance 96.55%)

Sei: +16.34% (USDC Dominance 83.30%)

Data Source: DefiLlama

Settlement as Power: How Mastercard is Redefining Card Network Moats with Stablecoins

With regulatory frameworks for stablecoins such as the "GENIUS Act" gradually becoming clearer, traditional financial institutions are adjusting their digital asset strategies. In the previous weekly report, we focused on Tether, Circle, and banks and speculated on their potential outcomes under the new regulations. This week, we shift our focus to card network giant Mastercard and analyze how it is leveraging a stablecoin strategy to transform from a traditional "network orchestrator" to a core facilitator of on-chain value transfer.

In 2024, the annual transaction volume of stablecoins surpassed the combined total of Visa and Mastercard for the first time, significantly challenging the moats of traditional card networks. Mastercard evidently realizes that maintaining its monopoly position long-term is no longer viable solely through settlement rules and fees. Mastercard's latest strategic move is shifting itself from the "consumer support midstream" to the starting point of the user's on-chain journey: by partnering with Chainlink, Shift4, Zerohash, and Uniswap, it is integrating bank card payments with on-chain delivery, bypassing the cumbersome coin purchase process of centralized exchanges, and directly bridging the conversion loop between fiat and on-chain assets.

If Mastercard's previous launch of a crypto debit card with Kraken and collaboration with MoonPay to support merchants accepting stablecoin payments penetrated the "midstream" of the crypto payment process, focusing on the circulation and consumption of existing assets, then this collaboration implies that Mastercard is now participating in the initial stage of fiat-to-crypto asset conversion, namely the establishment of an on-ramp for on-chain assets. This represents a more aggressive step aimed at achieving conversion at the starting point of the user journey.

Mastercard's greater ambition is to penetrate the realm of fund settlement's "ultimate layer." In the traditional fiat system, fund finality is controlled by commercial banks and central banks, with Mastercard only managing instructions and clearing logic. However, in a stablecoin-driven payment network, it is attempting to take over more underlying processes: through the Mastercard Move platform, it provides stablecoin minting and redemption services to enterprises and financial institutions; and through partnerships with Paxos (USDG), Fiserv (FIUSD), and PayPal (PYUSD), it is laying the groundwork for an on-chain wholesale settlement network to gain coordination and revenue-sharing rights in the institutional stablecoin circulation.

Mastercard's core belief is: the closer one is to settlement, the more they can determine the flow of value and its distribution. In the era of the blockchain, it is more about the renegotiation of payment governance and technical standard-setting. From the information flow at the instruction layer to the value flow at the settlement layer, Mastercard's stablecoin strategy is a restructuring of its "platform power."

Tether Betting on Emerging Markets and Programmable Finance

In the previous Stablecoin Weekly Report, we mentioned that the "GENIUS Act" set a "orderly delisting" timeline for USDT in the United States, forcing Tether to either exit compliant platforms and focus on the "Global South." This week, Tether CEO Paolo Ardoino's remarks on the Bankless podcast further confirmed the strategic logic behind this shift. He pointed out that in the U.S., where financial efficiency is already at 90%, the marginal improvement stablecoins can bring is limited, making it difficult to sustain a profitable model, ultimately leading to price wars and "burnout." On the contrary, in emerging markets where financial efficiency is only around 20% (such as Nigeria), if stablecoins can increase efficiency to 50%, the 30% structural gain can support stablecoin premiums. In extreme cases (facing issues like severe fluctuations in the local currency), local users may even be willing to let Tether keep their interest income.

Therefore, Tether has abandoned the idea of replicating its "Global South" business model in the United States and turned to a new path centered on yield farming (similar to tokenized money market funds) and programmability: including building AI agent wallets, integrating IoT devices, opening cross-chain wallet SDKs, and restructuring distribution networks through channels like Rumble.

Behind Tether's "two different strategies" lies the differentiation of stablecoin business models in different financial environments. In the U.S., where financial efficiency is at its peak, the adoption of stablecoins may need to go beyond the traditional narrative of "cost and speed" and instead focus on profit-sharing, programmability, and deep integration into new economic scenarios. Its continued expansion in the Global South market confirms that solving market failures is the eternal rule for stablecoins to achieve product-market fit. The game about the future of money has only just begun.

SlowMist: HuionePay Processes Over 50 Billion USDT on the TRON Chain, Funds Show Typical Illegal Characteristics

In the latest analysis by the on-chain anti-money laundering platform SlowMist, an encrypted platform named "HuionePay" was revealed to be involved in large-scale illegal fund flows. In the past year and a half, it has processed over 500 billion USDT through the TRON chain, exhibiting multiple typical high-risk features.

On-chain data shows that the platform experienced a significant net outflow of funds totaling 27.71 billion USDT, with daily withdrawal transactions peaking at 150,000 transactions/day in May 2025, far exceeding deposit frequencies during the same period. This reflects a pattern of rapid fund transfer known as "high-frequency withdrawals." Such behavior is highly indicative of illegal activities such as fund fraud and money laundering.

Despite doubts about the nature of the platform, the number of active deposit addresses continues to grow steadily, exceeding 80,000 in total, indicating its continued appeal to a specific user base. Several core withdrawal addresses have processed billions of USDT, and they have been involved in on-chain interactions with entities on the OFAC sanctions list and known attackers (such as the BingX hacker). The high concentration of funds and traceable transaction paths suggest a direct connection to an underground fraud network.

Of note, the report suggests that several key addresses may be controlled by "Hao Wang Guarantee" (formerly "Hui Wang Guarantee"), implicating a broader Southeast Asian scam network. Fund activities are concentrated between UTC 03:00–13:00, aligning with the region's operating hours, further confirming the alignment of its geographical location with its behavioral patterns.

On-chain intelligence has also revealed the critical role of regulatory collaborative efforts, including Tether asset freezes, FinCEN interventions, Telegram channel bans, and joint reports released by the United Nations Office on Drugs and Crime (UNODC) and Elliptic. These actions ultimately led to Hui Wang's announcement of ceasing operations, becoming a typical case of "multilateral containment" within the stablecoin sphere.

This event once again highlights the systemic risk exposure of USDT on the TRON network and underscores the strategic value of on-chain tracking tools (such as MistTrack) in identifying illicit fund flows and coordinating law enforcement efforts.

Market Adoption

Mastercard Fully Embraces Stablecoins, Integrating Three Major Stablecoins: Paxos, Fiserv, and PayPal

Key Highlights

Mastercard has announced the integration of PayPal's PYUSD, Paxos's USDG, and Fiserv's newly launched FIUSD into its global payment network, expanding its existing support for the Circle USDC ecosystem;

The payment giant will collaborate with Fiserv to introduce FIUSD into card products, on/off-chain channels, and merchant settlement systems, as well as join the Global Dollar Alliance behind the USDG stablecoin;

Mastercard will support cross-border stablecoin transactions through the Move service and enable consumers to use both fiat and stablecoin balances in a single interface using One Credential technology.

Why It Matters

This series of initiatives represents global banks and payment giants accelerating their embrace of stablecoins, a $2.6 trillion value and rapidly growing asset class. With the U.S. Senate passing the GENIUS Act to provide a regulatory framework for the stablecoin industry, institutional adoption is speeding up. Mastercard's Chief Product Officer Jorn Lambert said, "While most scenarios, consumers will still be using fiat and Mastercard, regulated stablecoins are undoubtedly part of the digital payment evolution." Mastercard's move means that soon financial institutions and businesses will be able to mint, redeem, and settle specific stablecoin transactions, and consumers will be able to transfer and pay with stablecoins just like traditional currency, including at 1.5 billion global merchant locations. These integrations will bring stablecoin payments closer to mainstream financial services, significantly enhancing their usability and adoption.

Chainlink and Mastercard Partnership to Enable Nearly 3 Billion Cardholders to Purchase Cryptocurrency Directly On-Chain

Key Highlights

Chainlink and Mastercard have announced a collaboration to enable over 3 billion Mastercard cardholders to directly purchase cryptocurrency on-chain; the service integrates multiple participants: Shift4 processes card payments, zerohash custodies fiat and provides crypto liquidity, XSwap and Uniswap execute final token swaps in decentralized markets; Chainlink's interoperability protocol strings together these steps, passing transaction data between card networks and multiple blockchains.

Why It Matters

This collaboration is the latest move in Mastercard's deepening cryptocurrency presence, following closely on the heels of its partnerships with MoonPay and Kraken. Mastercard's Blockchain and Digital Asset Lead Raj Dhamodharan said the company aims to "bridge the gap between on-chain commerce and off-chain transactions." Chainlink co-founder Sergey Nazarov emphasized that this partnership establishes a "crucial link between the traditional payment world and the over 3 billion cardholders in Mastercard's user base." This move will significantly streamline the process for mainstream users to purchase cryptocurrency, eliminating barriers of traditional exchange registrations and identity verifications, bringing a potentially significant new user base to the cryptocurrency market, and signaling a significant increase in acceptance of blockchain technology by traditional payment giants.

Financial Technology Giant Fiserv Announces Launch of FIUSD Stablecoin, Targeting Global Financial Institutions

Key Highlights

Fiserv plans to launch the US dollar-pegged stablecoin FIUSD and a digital asset platform by the end of 2025, aimed at providing digital asset services to its 3,000 regional and community banks and 6 million merchants;

FIUSD will be deployed on the high-performance Solana blockchain and will achieve deep integration with industry leaders such as Mastercard, Circle, Paxos, and PayPal. Fiserv's banking customers will be able to access it at "zero additional cost" and instantly reach over 1.5 billion merchants globally through Mastercard's multi-rail network;

FIUSD will empower smart contracts, automated compliance, and 24/7 operation, capabilities that traditional banking systems struggle to match. Fiserv is transitioning from relying on high transaction fees to a new revenue model based on reserve asset yield, micro-fees revenue sharing, and customer retention. This signals a shift in the entire payment industry from high-margin transactions to a low-margin, high-volume model.

Why It Matters

This move signifies a strategic "embrace" of stablecoins by a traditional financial giant. In the face of stablecoin transaction volume surpassing $27.6 trillion in 2024 (surpassing Visa and Mastercard combined), Fiserv's actions are seen as a "damage control" to traditional high-margin payment models. By offering stablecoin services, it aims to retain customer deposits and carve out a space in the digital asset ecosystem. This move aligns with the market demand for instant, composable financial services, forcing traditional giants to adapt.

PwC Releases Hong Kong Web3 Blueprint, Establishes Five Action Task Forces

Key Highlights

PwC collaborates with Web3 Harbour to release the "Hong Kong Web3 Blueprint," focusing on five key driving factors: talent, market infrastructure, standards, regulation, and funding contribution;

PwC Hong Kong Partner Peter Brewin announces the formation of five dedicated action task forces in August, each focusing on stablecoins, fund management, Virtual Asset Trading Platforms (VATP), legal compliance, and custody of OTC trading;

The blueprint emphasizes decentralization, transparency, security, and user empowerment, aiming to provide systematic guidance and support for the development of the Hong Kong Web3 industry

Why It Matters

The "Big Four" accounting firms actively participate in Hong Kong's Web3 strategic planning, indicating that professional service providers are accelerating their presence in the digital asset ecosystem to promote industry standardization.

Korean Payment Giant Kakao Pay Applies for KRWKP Stablecoin Trademark

Key Highlights

Kakao Pay has submitted 18 trademark applications related to "KRWKP" to the Korean Intellectual Property Office, covering stablecoin names, payment settlement, and cryptocurrency wallet services categories;

Market analysis suggests that this move may be in preparation for Kakao Pay to launch its own Korean won stablecoin, demonstrating its intention to enter the cryptocurrency payment field;

The company's official response stated that the trademark registration is merely a precautionary measure to protect against future business possibilities, and there are currently no specific plans to issue a stablecoin.  

Why It Matters

Mainstream Korean payment platforms showing interest in stablecoins indicate that Korean financial technology giants are actively positioning themselves in the digital asset payment arena.

Cenoa and Bridge Partner to Unlock Global Opportunities for Entrepreneurs in Emerging Markets, with Stablecoins as a Key Tool

Key Highlights

The Cenoa platform provides blockchain-based financial infrastructure for entrepreneurs in emerging markets (such as Turkey, Nigeria) to address global payment needs that traditional banking systems cannot meet;

Through the partnership with Bridge, Cenoa users can instantly access a virtual USD account, with funds automatically converted to USDC and deposited into their wallets, bypassing the delays, high exchange rate markups, and limitations of traditional banking systems;

Compared to traditional services like PayPal, Wise, etc., Cenoa offers an 80% lower cross-border payment fee, reducing the total cost by nearly 10 times, attracting over 10,000 users in Turkey within six months, with a monthly transaction volume exceeding $5 million.

Why It Matters

E-commerce sellers and freelancers in emerging markets need USD accounts to participate in global trade (such as selling on Amazon or receiving payments through Upwork), but the traditional services have slow account opening processes and high costs. Cenoa uses stablecoin infrastructure to address this pain point, shortening customer onboarding time to under 3 minutes and increasing transaction volume by 30 times. This partnership showcases the practical application value of stablecoins as an economic inclusion tool, not only solving the up to 8% foreign exchange cost issue but also providing emerging market users with an opportunity for fair participation in the global economy. Leveraging blockchain technology and stablecoins, Cenoa is helping millions of emerging market entrepreneurs overcome systemic barriers, lifting them out of poverty and putting them on an equal footing with their Western counterparts.

Ethereum Stablecoin Users Surpass 750,000, Reaching an All-Time High

Key Takeaways

Over 750,000 weekly active users of Ethereum network-based stablecoins such as USDT, USDC, BUSD, and DAI have set a new historical record, indicating a shift of stablecoins from speculation to utility-driven adoption;

With USDT's supply on the Ethereum network reaching $73 billion and USDC at $41 billion, they collectively dominate the majority share of the $134 billion stablecoin market on the network;

Competition among stablecoin issuers intensifies as they attract users through lowering transaction fees, enhancing yield opportunities, and holder incentives, potentially driving service improvements and innovations.

Why It Matters

Stablecoin user growth reflects the trend of digital dollar adoption, and as traditional financial institutions integrate stablecoin infrastructure, it will become a key component of digital commerce.

Rain Partners with Toku to Launch Global Stablecoin Payroll System Covering 100+ Countries

Key Takeaways

Stablecoin payment platform Rain has collaborated with compliance service provider Toku to introduce a cross-border stablecoin payroll system, allowing businesses to settle employee salaries in real-time in stablecoin form;

The system supports stablecoins such as Circle's USDC, Ripple's RLUSD, and Global Dollar's USDG, with more options to be added based on customer demand and compliance assessments;

The platform seamlessly integrates with mainstream payroll systems like ADP, Workday, and Gusto, enabling businesses to deploy within a week while meeting labor law and tax compliance requirements of over 100 countries.

Why It Matters

Stablecoins are rapidly expanding into real-world business use cases, the GENIUS Act advances regulatory clarity for the industry, and blockchain payroll payments can fundamentally transform traditional payroll methods, achieving instant settlements upon work completion.

New Product Highlights

Bitkit Introduces Bitcoin Payment Feature, Enabling Direct Settlement for Everyday Services like Netflix

Key Takeaways

The Bitkit wallet app has added a Bitcoin direct payment feature, allowing users to now directly use Bitcoin to pay for services such as Netflix, Airbnb, groceries, mobile data, and other everyday life services;

This feature eliminates the need for a bank intermediary, reduces traditional payment friction, and streamlines Bitcoin's use in real-world scenarios;

Bitkit's move aims to promote Bitcoin as a practical everyday payment tool, encouraging users to "take action and live on Bitcoin".

Why It Matters

The expansion of Bitcoin applications to everyday consumer scenarios, lowering the barrier to entry for cryptocurrency use, helps drive crypto payments towards mainstream adoption.

Circle Announces USDC and Cross-Chain Transfer Protocol CCTP V2 Officially Landing on Codex Blockchain

Key Highlights

USDC and the Cross-Chain Transfer Protocol CCTP V2 are now live on Codex Blockchain, designed specifically for B2B stablecoin transactions;

Circle Mint and its API fully support USDC on Codex, enabling eligible enterprises to easily access USDC liquidity and benefit from Codex's fast and secure network advantage;

Codex is a new EVM blockchain focused on performance, compliance, and cost efficiency, aiming to bring more real-world business activities on-chain, especially in the most challenging payment corridors.

Why It Matters

The USDC launch on Codex will drive various enterprise-level use cases: enterprise stablecoin settlements, on-chain foreign exchange and multicurrency settlements, and cross-chain transfers. Through the CCTP V2 protocol, users can securely transfer USDC between Codex and other supported chains in seconds, without relying on liquidity pools or third-party fillers. Eligible enterprises can apply for a Circle Mint account to access USDC deposit/withdrawal channels on Codex, while small and medium-sized enterprises and individuals can access USDC services through the Circle partner network. This integration further expands the USDC ecosystem, providing enterprises with a regulatory-compliant digital dollar to accelerate payments, global settlements, and streamline financial operations.

Dynamic Launches "Stablecoin Accounts" and "Stablecoin Hub"

Key Highlights

Dynamic launches "Stablecoin Accounts," helping fintech and global payment teams launch stablecoin-based currency applications in a matter of days (rather than months);

This solution aims to address stablecoin infrastructure decentralization and crypto complexity issues, streamlining wallet infrastructure, on/off-chain channels, and payment processes across the board;

The concurrently launched "Stablecoin Hub" is a free educational resource to help teams navigate the stablecoin ecosystem and become the preferred destination for stablecoin development learning.

Why It Matters

As the stablecoin market grows and institutional adoption increases, developing infrastructure has become a key pain point for the industry. Dynamic's new initiative directly addresses the technological barriers that fintech companies and payment teams face when adopting stablecoins, accelerating the widespread use of stablecoin applications by simplifying infrastructure and lowering the development threshold.

Former Stripe Growth Lead Launches Borderless to Help African Diaspora Collective Investment in Startups and Real Estate

Key Highlights

Joe Kinvi leveraged his stake gained from Stripe's acquisition of Touchtech Payments to establish the Borderless platform, aiding the African diaspora in collectively investing in startups and real estate in their homeland;

The UK-based platform has processed over $500,000 in transactions since beta testing last year, with over 100 communities on the waitlist, supporting investments in over 10 startups and 2 Kenyan real estate projects;

Borderless tackles the key pain points of cross-border collective investment: bank account freezes, currency mismatches, regulatory requirements, and authentication rules, by directly routing funds to verified sellers, escrow accounts, or lawyers to establish trust.

Why It Matters

African diasporas remit billions of dollars to their homelands annually, but they rarely invest in productive assets. Kinvi estimates that about $30 billion of immigrant savings lay idle each year. Borderless, by providing compliant backend infrastructure, enables diasporas to securely engage in collective investments, with a minimum investment of $1,000 for startups and $5,000 for real estate. Operating under the UK regulatory framework, the platform ensures the lawful promotion of investment opportunities to the diaspora. Unlike remittance-focused platforms like Zepz, LemFi, and NALA, Borderless focuses on long-term investment solutions. The company has raised $500,000 in seed funding from DFS Lab, Paystack CTO Ezra Olubi, and executives from Stripe and Google.

SoFi Announces Return to Crypto Space, to Launch Stablecoin-Based Cross-Border Remittance Service

Key Highlights

The U.S. fintech platform SoFi has announced that it will launch an international remittance service using blockchain and stablecoins, and reintroduce cryptocurrency investment features;

The new remittance service will allow users to send U.S. dollars and specific stablecoins over a "prominent" blockchain network 24/7, with funds quickly converted to local currency and deposited into the recipient's account;

SoFi plans to relaunch cryptocurrency trading services later this year, allowing users to buy, sell, and hold major cryptocurrencies such as Bitcoin and Ethereum, with possible future expansions into services like staking and crypto-backed loans.

Why It Matters

In 2023, SoFi temporarily suspended all cryptocurrency-related services to obtain a banking license. This return to the crypto space signifies a fintech company's re-embrace of digital assets in a new, more crypto-friendly regulatory environment. The latest guidance from the Office of the Comptroller of the Currency (OCC) permits national banks to offer crypto custody and stablecoin-related services, providing regulatory support for SoFi's strategic shift. CEO Anthony Noto stated, "The future of financial services is being fundamentally reshaped by cryptocurrency, digital assets, and broader blockchain innovation." SoFi will leverage its Galileo platform to provide blockchain technology infrastructure to third parties, indicating that it not only sees crypto services as a new revenue stream but also positions them as a key part of an overall strategic transformation.

Taurus Launches Industry's First Privacy-Enabled Stablecoin Contract, Built on Aztec Network

Key Highlights

Digital asset infrastructure company Taurus (whose clients include Deutsche Bank and Fondation Banque de France) has launched the first privacy-enabled stablecoin contract aimed at financial institutions hesitant to use stablecoins due to privacy concerns;

The contract is built on the Aztec Network, a privacy-focused Ethereum Layer 2 network backed by a16z, combining zero-knowledge proof privacy protection with compliance features similar to USDC, including mint/burn controls, emergency pause, etc.;

The new system allows companies to conceal employee names and amount information in cross-border payroll payments while retaining regulatory access when necessary. Taurus expects the global stablecoin supply to reach $1-2 trillion by 2030.

Why It Matters

Privacy-enabled stablecoins address a key adoption barrier for institutions. In the context of the GENIUS Act, innovative solutions that balance privacy protection and compliance requirements will accelerate stablecoin adoption in corporate payments and treasury management.

Crypto Platform Kraken Launches Krak App, Directly Challenging Venmo and Cash App

Key Highlights

Cryptocurrency exchange Kraken announced on Thursday the development of a financial services app called Krak, allowing global users to transact nearly cost-free across borders with both crypto and fiat currencies;

The app will support over 300 assets and plans to introduce physical and virtual debit cards in the coming weeks, with the company also offering lending and credit services;

Users of Krak can earn rewards of up to 10% on specific digital assets, with holders of the USDG stablecoin earning up to 4.1% yield, Kraken will not charge any transaction fees and will not stake client assets.

Why It Matters

Crypto companies are rapidly developing banking-like services, blurring the lines between digital assets and fintech, and Kraken's move will directly compete with traditional financial apps like Revolut and Cash App, laying the groundwork for revenue diversification ahead of its planned IPO early next year.

Regulatory Compliance

South Korea's Eight Major Banks Collaborate to Create Korean Won Stablecoin

Key Highlights

South Korea's eight major banks, including Kookmin Bank and Shinhan Bank, are jointly establishing a joint venture company to issue a Korean won stablecoin, with the project currently in the infrastructure discussion stage;

The project is being jointly driven by the banks, the Open Blockchain & Decentralized Identity Association, and the Korea Financial Telecommunications & Clearings Institute, with the earliest expected launch by the end of the year;

The team is considering two issuance models: a trust model (issuance after independent trust of customer funds) and a deposit token model (directly linked to bank deposits).

Why It Matters

Traditional financial institutions entering the stablecoin space on a large scale indicate that institutional-grade stablecoin solutions are becoming a key focus of financial system innovation.

Hong Kong Accelerates Digital Asset Regulation Framework, Stablecoin Regulations to Commence in August

Key Highlights

Hong Kong Financial Secretary Paul Chan Mo-po announced that 10 virtual asset trading platform licenses have been issued, with 8 applications currently under review, alongside the completion of stablecoin legislation work;

The "Stablecoin Regulation" will come into effect on August 1, making Hong Kong one of the first jurisdictions globally to establish a statutory regulatory framework for stablecoins;

The President of the HKMA, Eddie Yue, stated that the issuance of stablecoins requires strict regulatory requirements, equivalent to those for e-wallets and bank regulations. In the initial phase, only a few licenses will be issued, which will be used for specific scenarios such as cross-border trade.

Why It Matters

By clarifying the regulatory framework, Hong Kong is simultaneously advancing exchange licenses and stablecoin regulation, demonstrating its strategic positioning and competitiveness in establishing a regulated digital asset hub.

Hong Kong Releases Digital Asset Policy Statement 2.0 to Build a Global Digital Asset Innovation Hub

Key Highlights

The Hong Kong SAR Government announced the "LEAP" framework, designating the SFC as the primary regulatory body for digital asset trading and custody services, with the stablecoin regulatory regime set to be implemented on August 1;

The government plans to normalize tokenized bond issuance (already issued HK$6.8 billion in tokenized green bonds), clarify the exemption of ETF stamp duty for tokenization, and explore the use of stablecoins for government payments;

The statement clearly identifies the tokenization of real-world assets (RWA) as a key to enhancing market efficiency, promoting applications in various fields such as precious metals, renewable energy, etc. The HKMA's Ensemble project will explore interbank tokenized deposit settlement.

Why It Matters

By establishing a unified regulatory framework and tax incentive measures, Hong Kong is building a comprehensive digital asset ecosystem, focusing on reshaping financial infrastructure, emphasizing the substantive benefits of digital assets to the real economy rather than speculation.

Bank for International Settlements: Stablecoins Fail Three Key Tests

Key Highlights

The BIS report points out that stablecoins fail to pass three key tests of the monetary system: singularity, elasticity, and integrity, stating that they cannot become the cornerstone of the future monetary system;

The report believes that although stablecoins have programmability, pseudo-anonymity, and cost advantages, they may disrupt national monetary sovereignty through "hidden dollarization" and foster illegal activities;

The stock price of USDC issuer Circle fell by 15% following the report's impact, after previously rising from an IPO price of $32 to $299, a growth of over 600%.

Why It Matters

Central bank representative institutions deny the status of stablecoins but acknowledge the transformative potential of traditional financial asset tokenization, implying future regulatory directions and policy attitudes.

Russian Ruble Stablecoin A7A5 Reaches $9.3 Billion in Four-Month Trading Volume, Suspected of Sanctions Evasion

Key Highlights

A Financial Times investigation revealed that the Ruble-pegged stablecoin A7A5, launched by a Moldovan oligarch and a sanctioned Russian defense bank, has reached a transaction volume of $9.3 billion since its launch in February;

A7A5 claims to be backed by Rubles held by Moscow's Promsvyazbank (a defense bank under Western sanctions), with a circulating token value of $156 million;

The company behind this stablecoin, A7, is controlled by fugitive Moldovan businessman Ilan Șor, who has been sanctioned by the UK, with research institutions finding links to Russia's overseas political influence activities.

Why It Matters

Russia is actively developing cryptocurrency channels to bypass Western sanctions, creating stablecoins and partnering with independent exchanges to build a cross-border payment alternative system, avoiding mainstream stablecoins like USDT that are subject to Western oversight.

Macro Trends

Ondo CEO: Stablecoins Are Just the Tip of the Iceberg, Real Asset Tokenization Sector Maturing

Key Highlights

Ondo Finance CEO Nathan Allman stated that Circle's successful listing and the passage of the GENIUS Act have sparked a new wave in the blockchain sector, with stablecoins being just the "tip of the iceberg" in the trend towards real asset tokenization;

Ondo plans to launch a tokenization platform next month that will allow apps and wallets to provide on-chain access to publicly traded US stocks, bonds, and ETFs, similar to services already offered for tokenized government bonds by BlackRock and Franklin Templeton;

Allman predicts that "the vast majority of regulated financial assets will settle on the blockchain in the future," but believes that publicly traded liquid securities represent the "low-hanging fruit" of tokenization, while private market tokenization needs more time to mature.

Why It Matters

With Circle's stock price rising approximately 70% in a week, reaching an opening price of $250, the excitement in the tokenized asset market is on the rise. Allman points out that while assets like loans in the private market have enormous potential for tokenization, significant automation, digitization, and standardization of documents are still needed before tokenization can become widespread. Companies like BlackRock and Apollo Global Management are working towards creating more liquidity for private market asset classes, which will help expand tokenization applications in the future. Allman emphasizes that tokenization alone cannot make illiquid assets liquid, revealing that while real asset tokenization holds great promise, it still faces practical challenges, and the market will start with assets that have higher liquidity before gradually moving towards the private market.

The Era of Real-Time Streamlined Finance Has Arrived, Stablecoins to Unlock Trillions in Capital and Reshape Business Models

Key Takeaways

The USD stablecoin has reached 1% of the US money supply (M2) and is growing at an annual rate of 55%, potentially reaching 10% of M1 within a decade;

Services on the blockchain are starting to resemble traditional bank services but with faster speeds and lower costs, allowing businesses to adjust their treasury frequency from every two weeks to every 6 hours;

The real-time financial flow model will transform corporate cash management: global cash holdings could significantly decrease, employees could receive daily wages based on actual hours worked, and utility companies could bill on a daily instead of monthly basis.

Why It Matters

EY Global Blockchain Leader Paul Brody points out that as cross-border fund transfer costs approach zero and settle nearly instantaneously, enterprises can drastically reduce their local cash buffers. US businesses currently hold around $2 trillion in cash and $2.8 trillion in working capital loans, and transitioning to a financial flow model could unlock trillions in capital for new investments. With transaction costs on the Ethereum Layer 2 network routinely below $0.01, the weekly savings in "float" value are about $0.01, making more frequent cash management economically feasible. This shift not only eliminates inefficiencies like payday loans and 60-day utility bill delays but also transforms behavior through instant rewards, creating more effective incentive mechanisms. Just as we've seen the evolution from buying music to downloading to streaming, the payment space will undergo a revolutionary transformation from "cost reduction" to "speed enhancement" and then to "restructuring."

Bloomberg: Hong Kong Stablecoin Future Could Be Linked to Real-World Assets Such as Real Estate

Key Takeaways

Bloomberg Industry Research released a report analyzing the potential of the Hong Kong stablecoin market, suggesting that a stablecoin pegged to the Hong Kong dollar would still be influenced by the HKD-USD linked exchange rate mechanism;

Analysts believe that during a possible adjustment period of the Linked Exchange Rate System, even if the stablecoin's face value remains stable, the underlying asset support may need revaluation;

The report predicts that future Hong Kong stablecoins are likely to be linked to real-world assets (RWA) such as real estate, rather than relying solely on fiat reserves.

Why It Matters

As an international financial center, Hong Kong linking stablecoins to real-world assets will create a new way of value circulation. A substantial and tokenizable reserve of high-quality assets can drive the widespread adoption of Hong Kong stablecoins and unlock liquidity for high-value assets like Hong Kong real estate. This trend aligns with the global wave of tokenizing physical assets, reflecting Hong Kong's forward-looking approach to exploring innovative financial products. As Hong Kong continues to advance its virtual asset regulatory framework, asset-backed stablecoins may become a crucial bridge connecting traditional finance and the digital economy, providing new momentum for Hong Kong to solidify its position as Asia's crypto finance hub.

Paxos Chief Strategy Officer: Stablecoin Infrastructure Demand Surges, Banking Sector Exploring Tokenized Deposits

Key Takeaways

Paxos Chief Strategy Officer Walter Hessert stated that the company's stablecoin infrastructure demand has significantly increased, and Mastercard's participation in the Global Dollar Network exemplifies this trend;

Traditional financial institutions are actively exploring how to leverage the stablecoin payment rail, particularly valuing its "extremely low cost and nearly free" nature, while seeking technological tools to meet compliance requirements;

Paxos has already issued $150 billion in stablecoins, and the banking sector's interest in deposit tokenization is growing, especially following the Senate's passage of the GENIUS Act, prompting banks to pay more attention to the interaction between deposit tokenization and stablecoins.

Why It Matters

Traditional financial institutions are beginning to realize the necessity of stablecoins and are actively seeking ways to participate. While the GENIUS Act does not support interest-bearing stablecoins, banks are increasingly interested in tokenized deposits. Paxos's Global Dollar Network provides enterprises with an opportunity for "shared ownership and the sharing economy," helping institutions explore product-market fit, giving it a differentiated advantage in competition with Circle's USDC. Mastercard's participation in the Global Dollar Network indicates that the payment giant is supporting globally regulated stablecoin issuers, with Paxos as the underlying technology provider driving these innovations to market. The current stablecoin model has not fully met market demand, and financial institutions are seeking solutions to combine stablecoin payments with traditional wire transfers or real-time payment systems.

Tether CEO: Trillion AI Agents to Trade with Bitcoin and USDT

Key Takeaways

Paolo Ardoino predicts that within 15 years, there will be 1 trillion AI agents using blockchain assets for settlement transactions, believing that traditional financial institutions like JPMorgan will not open accounts for AI agents;

Tether has already entered the AI field, launching wallet development kit (WDK), Tether Data, and Tether AI platforms to build self-custodial wallet infrastructure;

USDT currently holds over half of the $243 billion global stablecoin market share, reaching $155 billion, with the U.S. Treasury Secretary saying clear stablecoin regulations could drive the industry's value to over $2 trillion by 2028.

Why It Matters

The rise of AI agent economies could provide a whole new set of use cases for cryptocurrency, reshaping the payment infrastructure of machine-to-machine commerce.

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