Original Title: "Cobo Stablecoin Weekly Report NO.12 | The Capital Narrative of Stablecoins: The 'Monetary Layer' of the Next Generation Internet"
Welcome to the 12th edition of the Cobo Stablecoin Weekly Report. This week, we observed a key trend: stablecoins are no longer just a tool of the crypto industry but are being revalued by mainstream capital markets, becoming a new asset class and a growth narrative.
According to the latest research, nearly 300 global financial executives no longer see stablecoins as a means to "save costs" but as a strategic growth engine driving operational efficiency, accelerating market expansion, and generating new revenue for enterprises. In their view, "faster settlement speeds" and "stronger market access capabilities" have far surpassed the tactical value represented by "cheaper."
This leap in awareness is quickly reflected in the capital markets. Take Circle, for example, whose stock price surged nearly 600% at one point, reaching a peak market cap of nearly $45 billion, approximately 70% of the circulating market cap of its stablecoin USDC, making it one of the most undervalued IPO cases in Wall Street's history. Its core profit model is based on the reserve asset net interest margin (NIM), with growth being driven by the channel effects brought by distribution networks such as Coinbase. This type of "new species of stablecoin" is neither a traditional bank nor a SaaS company but is being revalued by the capital markets as financial infrastructure serving as the "monetary layer" of the internet. Investing in Circle is essentially a bet on a new generation financial network built on compliant stablecoins.
Meanwhile, global business forces are also entering the space. JD.com founder Richard Liu publicly stated that JD.com plans to apply for stablecoin licenses in major currency countries globally with the goal of reducing inter-enterprise cross-border payment costs by 90%. This is not only a continuation of China's payment's go-global strategy but also an attempt to seize the initiative in future financial infrastructure.
In the United States, the passage of the "GENIUS Act" has set compliance thresholds for offshore models like Tether while providing institutional backing for compliant issuers like Circle. It has also reserved policy space for banks like JPMorgan Chase to issue "tokenized deposits" products (such as JPMD). The future financial system may operate both interest-free payment tools in an open system (such as USDC) and interest-bearing deposit substitutes in a closed system (such as JPMD). The stablecoin market is moving towards structural differentiation.
All of this points to one trend: stablecoins are evolving from payment tools into the underlying operating system of the global financial and commercial network. From the revaluation in the capital markets to cross-border enterprise efficiency deployments, stablecoins are gradually embedding into the next generation financial infrastructure.
The total market capitalization of stablecoins has reached $251.752 billion (approximately $251.8 billion), with a weekly increase of $835.49 million (approximately $0.84 billion). In terms of market distribution, USDT continues to maintain its dominance with a market share of 62.23%, while USDC ranks second with a market capitalization of $61.03 billion (approximately $61.0 billion), accounting for 24.24%.
Top Three Stablecoin Networks by Market Capitalization:
· Ethereum: $125.747 billion
· Tron: $79.175 billion
· Solana: $10.614 billion
Top 3 Fastest-Growing Networks of the Week:
· Story: +72.91% (USDC accounts for 100%)
· TON: +31.24% (USDT accounts for 89.87%)
· Scroll: +20.50% (USDC accounts for 76.32%)
Data source: DefiLlama
According to a recent survey of nearly 300 global financial executives, the narrative around the value of stablecoins is undergoing a fundamental shift, evolving from a payment tool used for "cost savings and efficiency" to a strategic "growth engine" capable of opening new markets and generating new revenues. The data from the report shows that when assessing the advantages of stablecoins, corporate executives often place more emphasis on "faster settlement speeds" and "market expansion capabilities," which have surpassed mere "cost savings."
This shift in perception is due to the increasingly clear global regulatory environment. Up to 90% of surveyed institutions believe that regulatory frameworks such as the EU's MiCA and the US GENIUS Act have become a "green light" rather than an obstacle for institutional capital entry. Against this backdrop, the global adoption is following multiple parallel paths: Latin America is the first to land in the cross-border payment scenario; the Asian model, represented by JD.com, is driven by traditional trade, emphasizing market expansion and the integration with the real economy; North America's infrastructure is mature, with enthusiastic institutional participation; while Europe, guided by MiCA, is steadily advancing with compliance and security as a priority.
This fundamental cognitive shift from "cost saving" to "creating value" has also directly impacted the capital markets, giving rise to a new investment narrative. The recent successful IPO of Circle, representing the "new breed of stablecoins," is being revalued by mainstream capital.
Wall Street is gradually realizing that companies like Circle are neither traditional banks taking on credit risk nor SaaS companies relying on subscription fees. They are a new type of highly efficient financial infrastructure company, with core profits coming from net interest margin (NIM) on reserves, and their growth depending on distribution networks with channels like Coinbase.
Therefore, Circle's IPO is not only a milestone for the company itself but also a landmark event signaling Wall Street's acceptance of compliant stablecoins as an emerging asset class. For investors, investing in Circle is no longer just betting on a company's success but also betting on the "currency layer" of the next-generation internet built by this "new breed."
In the "first half" of China's mobile payment era, JD.com was a complete loser. While WeChat Pay and Alipay dominated the C2C market with a 90% market share, JD Pay could only survive in a 1-3% niche. This was the "biggest mistake" openly admitted by its founder, Richard Liu, as he handed over the vital payment lifeline in his commercial empire. However, with a paradigm shift in technology, especially the structural opportunity brought by stablecoins for cross-border payments, this entrepreneur has been given a second chance to replay the "second half."
Recently, Richard Liu made it clear that JD.com hopes to apply for stablecoin licenses in all major currency countries worldwide, aiming to reduce global cross-border payment costs by 90% and increase efficiency to within 10 seconds. This is not only a business layout but also a strategic counterattack aimed at making up for past regrets and seizing the high ground of the new generation of financial infrastructure.
JD.com's choice of stablecoins as a disruptive "new weapon" is based on the logic that cross-border payments are one of the few areas not yet fully "formatted" by internet giants. Currently, China's cross-border payments still rely mainly on the traditional banking system (CIPS), with a transaction volume reaching as high as 175.49 trillion yuan by 2024, but issues of efficiency and cost are prominent. The existing third-party cross-border payment systems still rely on the banking network for clearing, facing challenges in bulk settlement and global compliance. Stablecoins can precisely bypass these issues by not depending on the traditional banking network but achieving global real-time, peer-to-peer value transfer through blockchain. Against the backdrop of increasingly clear global regulation, compliant stablecoins also pave the way for their large-scale application in the B2B trade sector.
After the Hong Kong Monetary Authority included stablecoins in its regulatory sandbox, JD.com seized the best opportunity to enter the race track. This strategic opportunity was concretely demonstrated in July 2024, with its subsidiary—JD CoinChain Technology (Hong Kong) Limited—officially appearing on the Hong Kong Monetary Authority's stablecoin issuer "sandbox" participant list. JD confirmed to reporters that its plan to "launch the stablecoin as early as the fourth quarter of this year" is accurate, but emphasized that the "specific timeline depends on regulation." It is reported that this stablecoin will be issued on a public blockchain to ensure that issuance data and other information are fully transparent to the outside world. This marks the specific execution phase of JD's stablecoin journey, with its internationalization strategy finding the most critical technological pivot.
JD's ultimate goal is to handcraft a native, low-cost financial operating system for every independent business node on its "local e-commerce, local infrastructure" global map. Starting with solving the cold start problem with its own supply chain ecosystem, the endgame is to build an "on-chain forex market" composed of multi-currency compliant stablecoins, evolving from an internal enterprise settlement system to an externally open "international stablecoin settlement hub."
The U.S. Senate passed the "GENIUS Act" stablecoin bill by a vote of 68-30, making it the first legislation focused on stablecoins to pass in one house of Congress. While we have seen more of its geopolitical financial intentions to consolidate the dominance of the U.S. dollar, for the players involved, this is a new script that will determine their respective destinies. This bill will directly determine the future fate of three core players—offshore champion Tether, compliant challenger Circle, and the traditional financial empire's fate in the banking sector. For all developers building the future on the blockchain, understanding this new script is crucial.
As the current market leader, Tether faces the "compliance threshold" set by the bill—including reserve asset requirements and U.S. audit standards—making it nearly impossible to bypass. More importantly, the bill requires centralized platforms to cease providing non-compliant stablecoin services to U.S. users within three years, essentially establishing an "orderly delisting" timeline for USDT in the United States. Tether may choose to retreat to the global South, reintroduce compliant products, or seek a "foreign issuer exemption."
In contrast to Tether's predicament, Circle's years of compliance efforts have been "officially stamped" by the legislation. The "GENIUS Act" confirms its compliance with reserve and audit mechanisms while reinforcing its deep relationship with Coinbase. Within compliant platforms, USDC is seen as a "cash equivalent," with its transactions and funds swiftly consolidating, further amplifying the market dividends of the Circle-Coinbase distribution alliance.
The key provision in the《GENIUS Act》 is the prohibition of interest payment on stablecoins. This aims to define compliant stablecoins as "non-interest-bearing instruments," foregoing the high-yield DeFi path in exchange for a secure, stable, and institution-friendly form of digital cash. However, at the same time, the bill specifies that "bank deposits" are not subject to this restriction—opening up compliant interest-paying space for "tokenized deposits" like JPMD issued by institutions such as JPMorgan Chase, creating an institutional arbitrage advantage.
This marks the emergence of two parallel structures in the financial system:
· USDC: Payment-type digital cash in the open market
· JPMD: Yield-type digital liability in a closed system
Interestingly, JPMorgan Chase chose to issue assets on Coinbase's Layer 2 chain Base this time, rather than sticking to its private chain. This move itself reveals that even the most powerful bank has realized that it cannot sit back within its "walled garden" and must consider how to compete and interact with a broader, vibrant open ecosystem.
On a deeper level, the《GENIUS Act》 attempts to "instrumentalize" the USD stablecoin, encouraging jurisdictions like Singapore, Hong Kong, and the EU to align with the U.S. regulatory framework through regulatory standard outputs. However, the USD stablecoin cannot eliminate the exchange rate risk for non-USD users, which instead validates the global demand for localized stablecoins and on-chain forex markets.
Key Takeaways
· Jon Ma, the founder of the cryptocurrency institutional data platform Artemis, stated on X platform that Circle is valued at $55 billion, corresponding to 58.1 times gross profit, 125.2 times EBITDA, and 163.7 times net profit expected for 2025
· The model predicts that Circle's revenue in 2029 will reach $9 billion (a 25% year-over-year growth), gross profit will be $3.1 billion (a 26% year-over-year growth), and EBITDA will be $2.4 billion (a 32% year-over-year growth)
· The model includes growth points for Circle Payment Network (CPN), with projected B2B payment volume exceeding $570 billion in 2029, where 20% will flow to CPN, charging a 0.10% fee
Why It Matters
· This valuation model suggests that Circle's current $55 billion valuation may already fully reflect future growth expectations, with limited upside potential. Analysts updated their stablecoin growth assumptions, expecting the stablecoin supply to grow by 30% to $1.2 trillion by 2029, with USDC holding a 28.5% market share (approximately $370 billion) and a 32% annual growth rate. Despite strong long-term growth prospects, the current high valuation multiple indicates that investors have high hopes for Circle's payment network expansion and USDC market share growth. This analysis highlights a potential disconnect between the valuation of the current stablecoin market leader and its long-term profitability, serving as a reference for the valuation of the entire stablecoin industry.
Key Takeaways
· The U.S. Senate passed the GENIUS Act stablecoin bill by a vote of 68-30, marking the first stablecoin-focused bill to pass in one chamber of Congress.
· The bill requires stablecoin issuers to maintain fully backed U.S. dollars or "similarly liquid" government-issued assets (such as bonds) as reserves, with institutions issuing over $50 billion needing to undergo annual audits.
· The bill empowers state regulatory authorities but requires their regulatory framework to be "substantially similar" at the federal level; institutions issuing over $10 billion must be federally regulated or apply for exemptions.
Why It Matters
The GENIUS Act (short for "Guidance and Enhanced Oversight of Innovation and U.S. Stablecoins") marks a significant shift in the U.S. stablecoin regulatory framework, creating substantial opportunities for compliant issuers while profoundly impacting the existing market landscape. While individual Americans will still be able to hold USDT, the avenues for acquiring USDT will be severely restricted, with its use case falling short of compliant alternatives. Tether CEO Paolo Ardoino has indicated the potential launch of a new stablecoin that complies with the GENIUS requirements, but such a token would not be supported through margin loans (one of USDT's minting pathways). As compliant Tether competitors receive the green light for use in critical financial and banking applications, USDT's market dominance may swiftly be supplanted. This regulatory overhaul will propel the U.S. payment system into the 21st century, fostering practical stablecoin applications, while also reshaping existing market dynamics.
Key Highlights
· Coinbase officially launches "Coinbase Payments" service, built on its proprietary Ethereum Layer-2 network Base, already integrated with Shopify, enabling merchants to seamlessly accept USDC stablecoin payments
· The payment system comprises three modular components: "Stablecoin Checkout" for consumers to experience gas-free transactions, an "e-commerce engine" providing APIs for platforms, and a "commercial payment protocol" for executing complex on-chain transactions
· This announcement drove the Coinbase (COIN) stock price up by 16%, and the USDC issuer Circle (CRCL) stock price up by 25%, reflecting the market's positive response to crypto payment integration
Why It Matters
· Coinbase's strategic move to build payment services on its proprietary Layer-2 network carries significant implications. By attracting merchants and transactions to the Base network, Coinbase can generate additional revenue from transaction batching and fees while controlling the user experience for gas-free transactions. This model not only replicates the functionality of traditional payment systems but also leverages blockchain technology to offer higher efficiency, building a strong moat for the company. The collaboration with Shopify signifies a crucial step in crypto payments penetrating mainstream e-commerce, creating real-world use cases for the USDC stablecoin. This move also reflects crypto exchanges transitioning from mere trading platforms to broader financial services, with stablecoin-centered payment infrastructure poised to become a key part of the Web3 ecosystem, bringing new revenue streams to Coinbase and enhancing its market competitiveness
Key Highlights
· Paxos forms a new company, Paxos Labs, to assist fintech firms, exchanges, and blockchain networks in issuing proprietary branded stablecoins
· Paxos Labs offers a comprehensive "Issuance-as-a-Service" solution, including regulatory compliance frameworks, reserve management, minting and burning APIs, and audit reports as core infrastructure
· This business model allows client institutions to quickly launch their own branded stablecoin products without spending years and a huge amount of money applying for licenses and building compliance systems, while also receiving Paxos' regulatory protection and technical support
Why It Matters
· Paxos' stablecoin OEM model has greatly reduced the barrier for institutions to enter the stablecoin space, potentially accelerating the widespread adoption of stablecoin applications. As a company regulated by the New York Department of Financial Services (NYDFS), Paxos has scaled its core compliance credentials and technical infrastructure, allowing various institutions to focus on use case applications and user services. This marks the stablecoin industry's evolution from a "build and operate" approach to an "infrastructure as a service" model, similar to how cloud computing transformed traditional IT. Financial institutions can explore innovative businesses such as DeFi yields and payment settlements using stablecoins without taking on regulatory risks, injecting new vitality into the stablecoin ecosystem. This move also reflects a surge in institutional demand for stablecoin services as regulations become clearer
Key Highlights
· Fellow has officially launched a cross-system financial routing service, allowing users to transfer funds instantly between any wallet, bank, or application through simple text messages, supporting various paths such as Apple Pay to Coinbase, Phantom wallet to bank account, and more
· This service achieves instant finality settlement through stablecoin technology, eliminating the waiting time of several days for transfers and removing fees between different payment rails, providing users with a single interface to connect to the modern financial network
· Fellow adopts a message app-based peer-to-peer design, allowing users to send and receive funds directly through existing message apps without the need for a cumbersome registration process, with payments settled in seconds
Why It Matters
Fellow is building a mobile-first infrastructure that connects traditional finance with crypto-native world, designed for stablecoins. Co-founders Josh and @freeslugs come from Framework and MoonPay, with extensive experience spanning crypto funds, globally systemically important banks, and consumer fintech, deeply understanding the pain points of payment systems. This service addresses the friction between current financial applications, breaks down account silos, and enables value to flow freely like information. Fellow's emergence represents a key step towards seamless integration in the payment industry, meeting users' demands for instant, low-cost, cross-system payments, and is poised to reshape users' fund transfer experience against the backdrop of the gradual popularization of stablecoin payments
Key Takeaways
· X Platform CEO Linda Yaccarino announced that users will soon be able to invest or trade on the platform, stating that "users will be able to achieve their entire financial lives on the platform."
· X has partnered with Visa to develop a digital wallet and P2P payment service called "X Money," as a key part of Musk's strategy to build a "super app."
· Musk has a personal interest in cryptocurrency, with Tesla holding 11,500 bitcoins worth $1.2 billion and his long-standing support for meme coins like DOGE.
Why It Matters
· The expansion of financial features on the X platform signals Musk's acceleration of transforming social media into a "super app" akin to China's WeChat. In an interview at the Cannes Lions Advertising Festival, Yaccarino mentioned that in the future, users will be able to engage in activities such as P2P payments, storing value, paying creators, or watching paid live streams on the X platform. Given Musk's close relationship with cryptocurrency, it is widely expected within the industry that X's financial services will likely integrate some form of cryptocurrency functionality. This development will not only reshape the business model of social media platforms but also potentially provide mainstream users with more convenient access to cryptocurrency, facilitating the expansion of digital assets and their use cases.
Key Takeaways
· Alchemy Pay plans to launch Alchemy Chain, a blockchain designed for stablecoins, in Q4 2025 and subsequently issue its own stablecoin, aiming to become a central hub for global and local stablecoins.
· Alchemy Chain will facilitate frictionless conversion between global stablecoins (e.g., USDT, USDC) and local stablecoins (e.g., EURC, MBRL), integrating liquidity across chains and jurisdictions.
Why It Matters
· As countries' stablecoin regulatory frameworks become more robust, the global financial system is preparing to further integrate digital assets into mainstream business. The U.S. GENIUS Act, Hong Kong Stablecoin Bill, EU MiCA regulation, and Japan's new stablecoin rules have created a clear legal environment for compliant stablecoins. By aligning its blockchain and stablecoin roadmap with the world's most advanced regulatory developments, Alchemy Pay is not only building a more efficient payment layer but also poised to shape the future of compliant cross-border financial infrastructure. As a payment gateway connecting crypto and traditional fiat, Alchemy Pay leverages its fiat payment capabilities in 173 countries to position itself as a key infrastructure provider for the stablecoin economy.
Key Points at a Glance
· According to sources familiar with the matter, the UK-based digital bank Revolut, serving 550,000 retail customers and 500,000 business customers with a valuation of $48 billion, is actively exploring the issuance of its own stablecoin
· Revolut has engaged in talks with at least one crypto-native company regarding a stablecoin project, which could be part of its stablecoin ecosystem for the centralized crypto exchange platform Revolut X set to launch in the EU in 2024
· This initiative comes amidst the U.S. Senate passing the GENIUS Act, a shift in the global stablecoin regulatory landscape, and adds Revolut to the roster of major institutions like Amazon, Walmart, and Bank of America considering stablecoin issuance
Why It Matters
· Stablecoins are increasingly becoming a strategic tool for financial institutions to reduce payment processing fees, enhance settlement speeds, and earn yield from reserve assets. With the advancement of the U.S. GENIUS Act and clarity in global regulations, traditional financial and tech giants are positioning themselves in this $2.51 trillion market. Industry experts anticipate the emergence of thousands of new stablecoins soon, posing strong competition to existing market leaders like Tether and Circle. As one of the world's largest digital banks, Revolut's entry into the stablecoin space will further blur the lines between traditional finance and cryptocurrency, paving the way for large-scale adoption. This trend has also raised concerns, with Senator Elizabeth Warren warning that tech giants could create stablecoins that "track purchasing behavior, leverage user data, and squeeze out competitors," highlighting the complex political and regulatory considerations behind the upcoming stablecoin market competition
Key Points at a Glance
· XFX raises seed funding led by Haun Ventures, with participation from Castle Island VC, Oak HC/FT, Maya Capital, Coinbase Ventures, and angel investors
· Within one year by May 2025, stablecoin trading volume reaches $37 trillion, doubling from the previous year; through stablecoins, cross-border payment costs have reduced from $40 to a few cents, with time shortened from several days to minutes
· The XFX platform was founded by three former Bitso executives, combining on-chain stablecoin transfers with a proprietary liquidity network to address the current forex conversion delays and liquidity bottlenecks in stablecoin payments
Why It Matters
· Stablecoin payments have become the most widely used and promising use case in the crypto space but face significant forex and liquidity challenges. Currently, most stablecoins are USD-denominated, meaning cross-border payments still require forex conversion. Traditional forex channels are slow, forcing market makers to hold stablecoins like USDC and wait for days to replenish local currency, creating a mismatch between "crypto in seconds but fiat in days." As stablecoin transaction volumes grow, this liquidity pressure intensifies. The XFX solution ensures that the receiving end immediately receives local currency, eliminating multi-day delays and forex differentials. The team's deep understanding of stablecoins and cross-border payments positions XFX to become the infrastructure for crypto-native forex, making global payments as seamless and instant as sending an email, fundamentally transforming the current cross-border payment model and liquidity management
Key Highlights
· The Stablecoin Index surged for two consecutive days, rising by 4.29% on June 17 and 9.05% on the 16th, leading to strong performances in digital currency concept stocks such as BitScreener Technology, up 20.02%, and Lakala, up 16.16%
· The "first stablecoin stock" Circle, listed on the NYSE only 8 trading days ago, has seen its stock price rise by about 4 times from the IPO price of $31, with a market cap exceeding $33 billion
· Lakala announced plans for an H-share listing, explicitly stating its intention to "accelerate the application of digital currency in cross-border scenarios," indicating that domestic payment institutions are actively expanding into the digital currency business
Why It Matters
· With the Hong Kong "Stablecoin Regulation" set to be implemented on August 1 and countries like the US and UK advancing stablecoin regulations, the global stablecoin market is facing a regulatory opportunity. Stablecoins have a clear advantage in cross-border payments, reducing fees by over 80% and shortening transaction times from the traditional 3-5 days to minutes. International payment giants like Stripe and PayPal have seized market share through acquisitions and product innovations, while domestic payment institution Lakala has also begun actively expanding. Hong Kong Financial Secretary Paul Chan Mo-po pointed out that the global stablecoin market is worth approximately $240 billion, with a trading volume exceeding $20 trillion last year. As the digital asset market develops, the demand will further increase. This trend will reshape the global payment landscape, bringing revolutionary changes to cross-border payments and financial inclusion
Key Highlights
· Stablecoin infrastructure project Ubyx has completed a $10 million seed funding round, led by Galaxy Ventures, with participation from Coinbase Ventures, Founders Fund, VanEck, and other well-known institutions
· Ubyx aims to address key barriers to the widespread adoption of stablecoins by connecting multiple stablecoin issuers with various financial institutions, enabling seamless conversion between stablecoins across multiple blockchains and the traditional banking system
· The platform allows stablecoins to be directly exchanged at a 1:1 value into existing bank and fintech accounts, significantly expanding the market access and utility of stablecoins, allowing enterprises and banks to treat stablecoins as cash equivalents
Why It Matters
Ubyx's innovation lies in building a multi-party stablecoin settlement ecosystem, addressing core issues in the current stablecoin market such as deposit/withdrawal friction, the need for issuers to build their own distribution networks, and institutions unable to treat stablecoins as cash equivalents. The platform's diversified approach enables the interchangeability of stablecoins with other forms of currency, paving the way for stablecoin adoption. Against the backdrop of an increasingly clear regulatory environment, Ubyx's settlement system is poised to become a key infrastructure connecting traditional finance with digital assets, providing financial institutions with wallets, analytics, and other necessary technologies to help businesses and institutions develop and implement stablecoin strategies. This development signifies that the stablecoin industry is evolving from a single issuer competitive model to a collaborative ecosystem.
Key Highlights
· Ramp has raised $200 million in a Series E funding round, valuing the company at $16 billion, a $3 billion increase from its $13 billion valuation three months ago, more than doubling from its $7.6 billion valuation in April last year
· The company's annualized payment processing volume has reached $800 billion (including card transactions and bill payments), growing 8x from $100 billion in January 2023, serving over 40,000 businesses
· Ramp recently announced an expanded partnership with Stripe and launched an enterprise card based on stablecoins, aiming to simplify cross-border transactions and support a new card issuance plan across multiple countries simultaneously
Why It Matters
· Ramp is transitioning from a single corporate card business to a full-fledged financial operations platform, building a complete ecosystem including spend management, bill payments, procurement, travel, and financial and accounting automation. In January of this year, the company launched the Ramp Treasury solution, allowing businesses to earn 35 times higher operational cash returns in their Ramp business account compared to the national average. CEO Eric Glyman emphasized that the company is using AI to fundamentally change the way enterprise operations are conducted: "Let robots track receipts and close the books so you can use your brain to build things." Ramp's stablecoin support for corporate cards launched in partnership with Stripe highlights the company's active embrace of digital currency innovation, providing new avenues for cross-border payments and international expansion
Key Takeaways
· Circle has struck a strategic partnership with fintech company Matera to integrate the USDC stablecoin into core banking systems, facilitating seamless integration between traditional finance and digital currency
· Matera becomes one of the first enterprises to integrate USDC into core banking infrastructure, with its Digital Twin ledger technology enabling banks and fintechs to concurrently offer real-time USD and local fiat currency (like the Brazilian Real) accounts
· Through this partnership, USDC settlements will be able to circulate through the Brazilian Pix payment system and other local payment channels, providing users with direct access within banking apps
Why It Matters
This partnership signifies a crucial shift of stablecoins from the crypto ecosystem into mainstream financial infrastructure. By integrating USDC into core banking systems, Circle and Matera have provided millions of users with a faster, low-cost, and always-on global payment solution, without the need to leave their existing banking apps. This model is particularly well-suited for emerging markets like Brazil, where it can significantly improve cross-border payment efficiency and reduce transaction costs. The partnership also showcases a technical pathway for stablecoin integration with traditional financial infrastructure, offering a replicable template for other markets and financial institutions. With the increasing adoption of similar integrations, stablecoins are poised to become a standard component of the global financial system, beyond just a tool limited to the crypto domain
Key Highlights
· JPMorgan has launched a "stablecoin-like" deposit token JPMD targeting institutional clients, backed by bank deposits, combining on-chain efficiency with FDIC insurance coverage
· This marks the first deployment on a public blockchain for JPMorgan's Kinexys distributed ledger technology studio, signaling a significant shift in the bank's crypto strategy
· The bank had filed a trademark application for the JPMD platform earlier this week, planning to offer digital asset trading, exchange, transfer, and payment services, as well as digital asset issuance
Why It Matters
· The launch of JPMD represents a strategic response from the traditional banking sector to the challenge posed by stablecoins. JPMorgan, combining the regulatory safeguards of bank deposits with the efficiency advantages of blockchain technology, has provided institutional clients with a compliant and innovative solution. This move is expected to prompt other major banks to follow suit, accelerating the banking industry's foray into DeFi. While JPMD is currently limited to internal use within JPMorgan's ecosystem, its issuance on Coinbase's Base network indicates the bank's intention to expand into broader consumer and commercial payment scenarios in the future. The competition between stablecoin companies and bank deposit tokens will drive innovation in the entire payments industry, with the ultimate beneficiaries being enterprises and consumers seeking more efficient, low-cost cross-border payment solutions
Key Highlights
· Visa is expanding its stablecoin capabilities in the Central Europe, Middle East, and Africa (CEMEA) region and has formed a strategic partnership with the African crypto exchange platform Yellow Card
· Visa executives stated, "By 2025, we believe every institution that moves money will need a stablecoin strategy," demonstrating the payment giant's increased focus on stablecoins
· Since becoming one of the first major payment networks to settle transactions using Circle's USDC in 2023, Visa has settled over $225 million in stablecoin transaction volume through its participating clients
Why It Matters
· Visa's continued expansion into the stablecoin business demonstrates that the global payment infrastructure is undergoing a significant transformation, with stablecoins rapidly becoming the "new payment rail of the internet." The company also recently invested in the stablecoin-based payment company BVNK, further demonstrating its long-term commitment to this field. The collaboration with Yellow Card will explore cross-border payment options, streamline financial operations, and enhance liquidity management, providing more efficient financial services to emerging markets. These developments are particularly important for regions with inadequate traditional banking services, such as Africa, and may offer a more convenient and cost-effective financial services channel to millions of people.
Key Highlights
· Animoca Brands has established a joint venture with Standard Chartered Bank and Hong Kong Telecom to apply for the issuance of a Hong Kong dollar stablecoin regulated by the Hong Kong Monetary Authority, with the Hong Kong "Stablecoin Regulation" set to take effect on August 1.
· In the collaboration, Animoca Brands is responsible for developing native Web3 application scenarios, Standard Chartered Bank is driving bank client resources, and Hong Kong Telecom is focusing on retail customer outreach.
· Animoca Brands' CEO, Yat Siu, stated in an interview with the Daily Economic News that the Hong Kong dollar stablecoin will be widely used in scenarios such as virtual asset trading within the gaming ecosystem, cross-border trade, and financial settlements, serving as a crucial link for mainland asset transactions to go international.
Why It Matters
· Hong Kong, as a financial hub with the world's largest offshore Renminbi pool and trade settlement center, holds strategic significance in stablecoin development. Yat Siu pointed out that facing geopolitical influences, Hong Kong needs to establish a neutral financial system, and a public chain-based Hong Kong dollar stablecoin will be a key bridge for the internationalization of mainland assets. He predicts that almost all financial products and assets will be put on the chain in the future, creating a huge market for the Hong Kong dollar stablecoin. As a practitioner in the Web3 field, Animoca Brands hopes to connect traditional finance with the Web3 ecosystem through the Hong Kong dollar stablecoin and has expressed its willingness to cooperate with mainland institutions on blockchain applications.
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