#Stablecoins
223 articles tagged #Stablecoins — curated RWA tokenization coverage.
BIS Chief: Stablecoins Unsuitable for Large-Scale Payments…Tokenized Deposits Are the Answer
BIS General Manager Pablo Hernández de Cos recently argued that stablecoins possess fundamental limitations as large-scale payment mechanisms, advocating instead for tokenized deposits. Speaking at the Federal Reserve's Jackson Hole symposium, he suggested that tokenized bank deposits are better suited for everyday transactions while stablecoins may serve niche roles like cross-border payments. This perspective contrasts with U.S. officials who view dollar-pegged stablecoins as a strategic tool to bolster demand for U.S. Treasuries and maintain dollar hegemony. De Cos warned that a mass migration of funds from bank deposits to stablecoins could increase bank funding costs and subsequently raise lending rates for the broader economy. He also highlighted risks regarding the erosion of monetary sovereignty in emerging markets, where widespread stablecoin adoption could undermine local central bank policy transmission. Furthermore, he noted that inconsistent regulatory standards and interoperability challenges across stablecoin issuers complicate their integration into the global financial system. Ultimately, the BIS emphasizes that tokenized deposits offer a more stable path to blockchain-based finance by preserving existing monetary foundations. This debate underscores the growing institutional tension between private stablecoin issuers and central banking authorities regarding the future of digital money.
Bridge founder Zach Abrams sees an opportunity for ‘tokenized local currencies’ across Asia
Bridge, a stablecoin infrastructure firm co-founded by Zach Abrams and Sean Yu, has emerged as a critical layer for cross-border payments, processing over $5 billion in annualized volume by 2024. Originally focused on the U.S. market, the company discovered significant demand in emerging economies like Colombia, Venezuela, and the Philippines, where traditional financial rails are inefficient. Following its $1.1 billion acquisition by Stripe in 2024, Bridge is now positioning itself to simplify the complex landscape of tokenized assets. Abrams emphasizes that the current dominance of U.S. dollar-denominated stablecoins is a sign of market immaturity rather than a permanent state. The firm is actively expanding support for non-dollar currencies, including the Mexican peso, British pound, and Brazilian real, to facilitate local business needs. By providing a unified infrastructure layer, Bridge aims to enable businesses in hubs like Singapore to hold tokenized local currencies and access yield-generating investments. This shift toward multi-currency tokenization is essential for integrating stablecoins into global trade and addressing the regulatory requirements of diverse international markets.
Visa signs 2nd Korean stablecoin deal this week, with Hana
Visa has entered a strategic partnership with Dunamu, the operator of South Korea’s largest cryptocurrency exchange, Upbit, to advance stablecoin payments and global remittance infrastructure. This collaboration follows a similar agreement between Visa and Shinhan Financial, signaling a concerted effort by the payments giant to penetrate the South Korean digital asset market. Dunamu, which counts Hana Financial as a major shareholder following a $666 million investment, will focus on exploring business models centered around OpenUSD. OpenUSD serves as the primary stablecoin for Visa’s Stablecoin Platform, a project led by Bridge CEO Zach Abrams. By integrating these stablecoin solutions, Visa aims to modernize cross-border commerce and leverage AI-driven payment technologies. This move highlights the growing institutional interest in utilizing regulated stablecoins to bridge traditional finance with blockchain-based payment rails. The partnership underscores the strategic importance of South Korea as a hub for digital asset innovation and institutional adoption.
World Liberty Financial Issues USD1 Native On Canton Network
World Liberty Financial has officially launched its native stablecoin, USD1, on the Canton Network, marking a significant expansion into the institutional-grade RWA space. The project utilizes the Canton Network, a privacy-enabled, interoperable blockchain infrastructure designed specifically for financial institutions to facilitate secure asset tokenization. By issuing USD1 on this network, World Liberty Financial aims to bridge the gap between traditional finance and decentralized ledger technology, ensuring compliance and scalability. This development is notable because it leverages a specialized enterprise blockchain rather than a public chain, highlighting a growing trend of institutional preference for permissioned environments. The move signals a strategic shift toward providing stable, programmable liquidity for complex financial workflows. As the RWA market matures, the integration of native stablecoins on enterprise-grade networks like Canton is expected to enhance settlement efficiency and cross-chain interoperability. This launch underscores the increasing institutional appetite for tokenized assets that maintain strict regulatory standards while benefiting from blockchain-based automation.
Mantle stablecoins and tokenized assets reach $880M
Mantle has successfully scaled its onchain ecosystem to reach approximately $880 million in combined stablecoin and tokenized asset value. This total comprises roughly $550 million in stablecoin supply, dominated by USDT0, and $330 million in diverse tokenized assets including equities, U.S. Treasuries, and yield-bearing funds. The network has significantly expanded its catalog to include 985 distinct tokenized assets, with tokenized equities growing from 10 to 155 listings between April and June. Strategic integrations, such as the partnership with Backed to bring xStocks to the network, have enabled exposure to major public companies like Apple and Nvidia. Furthermore, Mantle has launched a DeFi vault via Fluxion that allows users to earn yield from Sky’s sUSDS, marking a shift toward self-custodial RWA strategies. These developments highlight the increasing complexity of the RWA market, where investors must distinguish between synthetic price exposure and direct ownership models. As Mantle integrates these diverse financial instruments, it underscores the broader industry trend of bridging traditional finance with decentralized infrastructure to capture yield and liquidity.
The Clarity Act will put Main Street banks at a disadvantage
The Clarity Act has sparked a contentious debate regarding its potential impact on community banking institutions versus larger financial entities. Nate Franzén, a community banker, argues that the proposed stablecoin rewards language within the legislation unfairly disadvantages smaller local banks. Conversely, Summer Mersinger of the Blockchain Association defends the current legislative framework, dismissing concerns that the bill poses a systemic threat to community-level financial operations. The disagreement highlights a growing tension between traditional banking models and the integration of digital asset frameworks into the broader financial system. As the Clarity Act moves through legislative scrutiny, the industry remains divided on whether these provisions foster innovation or create an uneven playing field. This discourse is critical for the RWA market as it underscores the regulatory friction involved in bridging legacy banking with stablecoin-backed infrastructure. The outcome of this debate will likely influence how community banks participate in the tokenized asset ecosystem moving forward.
Visa joins BLOOM for stablecoin settlement. Shinhan adopts Visa Stablecoin Platform
Visa has expanded its stablecoin infrastructure footprint through two strategic developments involving the BLOOM initiative and Shinhan Financial Group. By joining the Monetary Authority of Singapore’s BLOOM project, Visa aims to facilitate cross-border settlement using regulated stablecoins and tokenized deposits alongside participants like JPMorgan and Circle. Simultaneously, South Korea’s Shinhan Financial Group has partnered with Visa to adopt the Visa Stablecoin Platform to explore stablecoin issuance, remittance, and redemption workflows. This collaboration specifically targets the modernization of card settlement processes, which Visa has been refining since its initial trials five years ago. By leveraging stablecoins for these settlements, financial institutions can move away from traditional banking hour constraints and reduce the capital-intensive collateral requirements previously necessary for card issuers like Nium. These moves signal a broader institutional shift toward integrating blockchain-based settlement layers into existing global payment rails. The integration of these platforms underscores the growing importance of interoperable, 24/7 settlement systems for regulated financial entities. Ultimately, these initiatives demonstrate how major payment networks are positioning themselves to bridge the gap between traditional finance and tokenized asset ecosystems.
Top Ways Tokenized Treasury Yields Are Replacing Traditional Cash Reserves in Startup Treasuries
Startups are increasingly shifting idle cash reserves into tokenized U.S. Treasury products to capture yield while maintaining operational liquidity. Following the 2023 collapse of Silicon Valley Bank, companies are diversifying away from traditional bank deposits to mitigate concentration risk. Platforms like Circle’s USYC and Franklin Templeton’s BENJI allow firms to earn returns on excess capital that would otherwise remain stagnant. These tokenized assets offer near-instant settlement and 24/7 accessibility, bypassing the T+1 or T+2 delays inherent in traditional money market funds. By integrating these assets into smart contracts and treasury management systems like Fireblocks, startups can automate yield accrual and collateral management. However, these instruments lack FDIC insurance and carry risks including smart contract vulnerabilities and potential redemption gates during market stress. This shift represents a broader evolution in corporate finance where programmable, blockchain-based instruments complement traditional banking to optimize capital efficiency.
State bankers plan industry owned blockchain for tokenized deposits, stablecoins
Thirty-nine state bankers associations have formed the BankChain Alliance to develop a shared, industry-owned blockchain infrastructure for tokenized deposits, stablecoins, and automated settlement. The initiative aims to provide a neutral, governed network that addresses the specific needs of a broad range of U.S. banks, contrasting with existing solutions controlled by a few large institutions. By targeting a 2027 launch, the alliance seeks to overcome the high investment barriers and lack of demand currently hindering smaller banks from adopting distributed ledger technology. The project emphasizes interoperability to ensure it functions as a connected ecosystem rather than an isolated silo. This development is significant for the RWA market as it represents a collective effort to standardize tokenized commercial bank money at a national scale. The alliance draws inspiration from European models like Germany’s Commercial Bank Money Token and the UK’s Great British Tokenised Deposits consortium. Ultimately, this move signals a shift toward industry-governed infrastructure that could accelerate the institutional adoption of tokenized assets across the U.S. banking sector.
Revolut is launching a euro stablecoin into a market MiCA handed to an American company
Revolut is preparing to launch a euro-backed stablecoin, leveraging its extensive banking licenses to challenge the current market dominance of Circle’s EURC. This move comes as European MiCA regulations have inadvertently consolidated the euro stablecoin market around US-based issuers, creating a strategic opening for a European neobank. Revolut holds a full UK banking license, an EU banking license, and MiCA authorization, allowing it to issue regulated instruments directly on its own balance sheet. With 65 million users across 38 countries, Revolut possesses a distribution advantage that traditional crypto-native issuers lack. The company is simultaneously participating in the ECB’s digital euro pilot and the FCA’s stablecoin regulatory sandbox, positioning itself at the intersection of private and public digital currency development. By owning the currency issuance process, Revolut aims to bolster its valuation ahead of a potential $200bn IPO. While specific details regarding blockchain integration and reserve management remain unconfirmed, the initiative represents a significant shift in how neobanks integrate RWA tokenization into their core financial services.
Tokenization Moves From Crypto Experiment To Mainstream Financial Infrastructure In 2026
The United States is transitioning tokenization from a speculative experiment into a core component of mainstream financial infrastructure by 2026. Regulators, including the SEC and CFTC, have established a new memorandum of understanding to harmonize oversight, product definitions, and enforcement across digital asset markets. A central regulatory principle dictates that tokenizing a security does not alter its legal nature, requiring that digital versions preserve the same underlying rights as traditional assets to qualify for equivalent capital treatment. Major institutions like the Depository Trust Company, Nasdaq, and the New York Stock Exchange are actively integrating these technologies into their operations. Banking guidance now permits the use of tokenized collateral, provided it is supported by rigorous legal analysis and enforceable rights. Furthermore, the SEC has allowed broker-dealers to utilize qualifying payment stablecoins for capital requirements, while the CFTC is integrating digital assets into derivatives margin frameworks. This shift signals that market participants can no longer rely on regulatory gaps, as the focus moves toward building automated, compliant, and legally robust financial systems.
World Liberty Financial Launches USD1 on Canton Network to Accelerate RWA Tokenization
World Liberty Financial has officially launched USD1, a new stablecoin pegged to the U.S. dollar, on the Canton Network to facilitate the tokenization of real-world assets. This initiative aims to bridge traditional finance with decentralized infrastructure by leveraging the interoperability features of the Canton Network. By utilizing a permissioned blockchain environment, the project seeks to provide institutional-grade security and compliance for asset tokenization. The launch represents a strategic move to increase liquidity and efficiency in the RWA sector, allowing for seamless cross-chain asset movement. This development is significant as it highlights the growing trend of private, enterprise-focused blockchains being utilized for regulated financial products. The integration of USD1 into the Canton ecosystem provides a foundational layer for future tokenized offerings, including debt instruments and private credit. As institutional interest in RWA grows, this launch serves as a critical test case for the scalability of stablecoins within enterprise-grade distributed ledger technology.
Wyoming Stable Token Commission Migrates Frontier Token to Chainlink CCIP
The Wyoming Stable Token Commission has officially migrated its Frontier Stable Token (FRNT) from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as its exclusive cross-chain infrastructure. This transition follows an exhaustive security review that raised concerns regarding LayerZero’s disclosure practices and operational security. FRNT, launched in January 2026, serves as the first fiat-backed, fully reserved stable token issued by a U.S. public entity, with reserves held in U.S. dollars and short-term Treasuries. The token is currently deployed across eight major blockchains, including Ethereum, Solana, and Arbitrum, to support Wyoming’s School Foundation Program. By adopting CCIP, which features SOC 2 Type 2 certification and redundant validation by 16 independent node operators, the commission aims to establish a high-security blueprint for sovereign digital assets. This move highlights a growing trend where public-sector issuers prioritize institutional-grade interoperability over standard DeFi solutions. Ultimately, the migration underscores the necessity for standardized, secure infrastructure as governments increasingly integrate blockchain technology into state financial operations.
Standard Chartered Taps HKDAP for Tokenized Fund Settlements
Standard Chartered Bank (Hong Kong) Limited (SCBHK) has become the first authorized distributor of HKDAP, a Hong Kong dollar-backed stablecoin issued by Anchorpoint Financial Limited. Anchorpoint, a joint venture between SCBHK, HKT, and Animoca Brands, received its stablecoin issuer license from the Hong Kong Monetary Authority in April 2026 under the Stablecoins Ordinance. This development marks a significant step in integrating regulated stablecoins into institutional financial workflows within the region. SCBHK plans a phased rollout focusing on tokenized money market fund subscriptions, treasury settlement, and cross-border payments. By leveraging HKDAP for 24/7 on-chain settlement, the bank aims to enhance liquidity management and operational efficiency for institutional clients. Tokenized money market fund activities are scheduled to commence in the fourth quarter of 2026, involving both local and international asset managers. This initiative highlights the growing institutional adoption of programmable, regulated stablecoins to modernize traditional financial infrastructure and cross-border transaction processes.
Bernstein says Circle’s growth cycle can continue without the Clarity Act, sees 59% upside
Bernstein analysts project that Circle can maintain its growth trajectory for USDC even in the absence of the Clarity Act, citing a robust rebound in stablecoin supply and expanding transaction volumes. The firm maintains an optimistic outlook, forecasting a 59% upside potential for the company as it solidifies its market position. This growth is driven by increasing demand for stablecoins as a primary settlement layer for digital assets and cross-border payments. By leveraging its existing infrastructure and regulatory compliance, Circle continues to capture significant market share despite the legislative uncertainty surrounding the Clarity Act. The analysis highlights that the fundamental utility of USDC as a bridge between traditional finance and blockchain ecosystems remains the primary catalyst for its adoption. This development underscores the resilience of stablecoin issuers who are successfully scaling operations through organic market demand rather than relying solely on specific regulatory tailwinds. For the broader RWA market, this suggests that stablecoin liquidity will remain a critical foundation for the tokenization of real-world assets.
Ethereum’s Institutional Shift: How Tokenization, DeFi, Wall Street Could Shape ETH’s Next Phase
Ethereum is transitioning from a retail-focused network into a foundational infrastructure layer for institutional finance, driven by the integration of tokenized funds, stablecoins, and Layer 2 scaling solutions. Major financial institutions, including BlackRock and Société Générale, are leveraging the Ethereum ecosystem to represent regulated financial claims and execute on-chain transactions. BlackRock has expanded its tokenized money-market strategies, notably issuing tokenized share classes for European funds in partnership with JPMorgan’s Kinexys. Currently, the Ethereum mainnet hosts approximately USD 17.4 billion in tokenized real-world assets and USD 157 billion in stablecoins. The ecosystem's growth is further supported by over 100 active Layer 2 networks, which provide cost-effective execution environments while maintaining Ethereum as the primary settlement layer. This shift suggests that Ethereum's long-term value may increasingly derive from its role as the underlying security and collateral layer for a global on-chain financial system. As liquidity and regulated assets accumulate within this environment, the network becomes a critical hub for institutional settlement and decentralized financial applications.
Institutional-Grade Allocation in a Single Account: BiFu's Wealth Suite Takes Shape, Bringing Managed Funds and RWA Under One Roof
BiFu has launched its Wealth suite, an integrated platform combining traditional managed funds with tokenized real-world assets (RWA) to bridge the gap between institutional-grade private markets and retail investors. The platform offers five managed funds covering fixed income, gold, quantitative strategies, Hong Kong IPOs, and foreign exchange, alongside three tokenized private-market equity projects. By leveraging stablecoins for subscriptions and lowering entry thresholds to between $15,000 and $50,000, BiFu aims to democratize access to assets previously reserved for high-net-worth individuals. According to RWA.xyz, the broader RWA market has reached $38 billion in value with over 2 million holders, signaling a shift toward retail adoption despite a persistent supply scarcity. BiFu provides the compliance, smart contract, and settlement infrastructure, partnering with licensed managers like Duxton Asset Management and Wellspring Asset Management to structure these offerings. The platform's strategy emphasizes that while Treasuries solve yield needs, private equity and alternative funds are the primary growth frontier for solving access issues. This development highlights the ongoing evolution of RWA tokenization from a niche institutional tool into a structured, accessible investment ecosystem.
IMF Warns Tokenized Finance Could Outrun Central Banks
The International Monetary Fund (IMF) has issued a warning that the rapid adoption of tokenized financial systems may outpace the ability of central banks to manage market crises. While tokenization offers benefits like reduced costs and faster settlement, the IMF argues that traditional two-day settlement windows currently act as essential shock absorbers during periods of market stress. By removing these buffers, tokenized systems introduce automated margin calls and algorithmic feedback loops that compress the time available for regulatory intervention. Tobias Adrian, the report's author, specifically identified stablecoins as a structural vulnerability, noting their susceptibility to run risks similar to money market funds. The report also highlights that tokenized lending remains limited due to blockchain pseudonymity, which complicates credit risk assessment. To mitigate these systemic risks, the IMF proposed a five-pillar policy roadmap emphasizing legal certainty, interoperability, and the adaptation of central bank tools for 24/7 markets. This warning arrives as major institutions like the NYSE, Nasdaq, and the DTCC continue to advance their own tokenized securities initiatives.