#Stablecoins
223 articles tagged #Stablecoins — curated RWA tokenization coverage.
BIS maps stablecoin yield models. Do interest bans target the right one?
The Bank for International Settlements (BIS) has released a bulletin categorizing stablecoin yield models into reserve-based and activity-based structures, highlighting significant differences in risk profiles. Reserve-based models, such as Coinbase's USDC implementation, pass through returns from reserve assets and closely track the federal funds rate. Conversely, activity-based models like Binance's Simple Earn deploy customer funds into lending and trading operations, with yields driven primarily by crypto market volatility rather than benchmark interest rates. During 2024, Binance USDT borrowing rates reached 40-50%, reflecting high counterparty risk due to the commingling of assets. The BIS warns that current regulatory interest prohibitions in the EU and US often target the lower-risk reserve-based model while potentially overlooking the systemic risks inherent in activity-based platforms. This distinction is critical for the RWA market as it clarifies how stablecoin yields are generated and where hidden counterparty exposures reside. The collapse of Genesis and the subsequent impact on Gemini Earn users serve as a cautionary example of the risks associated with non-segregated client funds in activity-based models.
Boerse Stuttgart taps SocGen, flatexDEGIRO for EU blockchain settlement push
Boerse Stuttgart’s Seturion has partnered with Societe Generale, its crypto subsidiary SG-FORGE, and online broker flatexDEGIRO to establish a pan-European blockchain securities settlement system. Societe Generale will issue tokenized structured securities, including turbo warrants and investment certificates, on Seturion, with SG-FORGE facilitating settlements using its CoinVertible euro and dollar stablecoins, EURCV and USDCV. FlatexDEGIRO, serving 3.5 million customers across 16 countries, will connect its retail investor flow to the platform, while Nasdaq’s European trading venues will also integrate to support trading of these tokenized securities. This collaboration aims to reduce settlement costs and fragmentation, contributing to a unified European capital market for tokenized assets, and highlights the ongoing efforts by European financial institutions to build regulated blockchain infrastructure. Seturion has submitted a license application to Germany’s BaFin under the EU's DLT Pilot Regime.
USDT Loses Its Last EU Foothold As MiCA Deadline Hits July 1
The European Union's MiCA transitional window concludes on July 1, 2026, effectively forcing unlicensed crypto firms out of the market and removing Tether's USDT from regulated European platforms. With only 194 companies securing licenses out of over 3,000 previously registered firms, regulators anticipate that 75% of legacy entities will lose their ability to serve EU clients. Tether, the issuer of the $175 billion USDT stablecoin, has declined to seek authorization due to MiCA's requirement that 60% of reserves be held in European banks. Major exchanges including Binance, Coinbase, Kraken, and Crypto.com have already delisted USDT for European users to comply with these tightening regulations. This regulatory shift creates a significant market advantage for Circle, whose USDC and EURC tokens are currently the only top-ten stablecoins with full MiCA clearance. France has adopted a particularly strict stance, threatening criminal charges, prison time, and fines for firms that continue operating without proper authorization after the deadline. This development marks a pivotal moment for the RWA sector, as stablecoins serve as the primary liquidity layer for tokenized assets, and their regulatory status directly impacts the accessibility of on-chain financial products in the region.
AllUnity launches Swedish krona stablecoin SEKAU under MiCA
AllUnity has officially launched SEKAU, a Swedish krona-backed stablecoin issued as an e-money token under the European Union’s Markets in Crypto-Assets (MiCA) regulation. The token is backed 1:1 by segregated fiat reserves managed by Banking Circle, with additional support from Marginalen Bank and Trust Anchor Group. By providing a regulated, native digital version of the Swedish krona, the initiative aims to facilitate institutional settlement, cross-border payments, and treasury flows. The stablecoin is currently available on Ethereum, Solana, Base, Tempo, and Polygon, with plans for further network expansion throughout 2026. This launch marks a significant development for the RWA market, as it addresses the dominance of dollar-backed stablecoins by offering a compliant, non-dollar alternative for European markets. Holders benefit from a statutory right of redemption at par value, ensuring transparency and security under the MiCA framework. This move expands AllUnity’s existing portfolio of EURAU and CHFAU tokens, signaling a broader trend of European institutions transitioning from stablecoin research to active, regulated deployment.
Tether exits gold-backed stablecoin experiment, revealing limits of tokenized gold lending
Tether is officially winding down its Alloy by Tether platform and the associated aUSD₮ stablecoin, marking the end of an experimental initiative focused on gold-backed collateralized lending. The company initiated a phased shutdown after evaluating user activity and market demand, setting a deadline of September 17 for existing users to unwind positions and reclaim collateral. While Alloy aimed to leverage Tether Gold (XAU₮) as collateral for minting overcollateralized dollar-denominated assets, Tether concluded that resources are better directed toward core offerings with higher liquidity. This decision underscores a critical nuance in the RWA sector, where direct exposure to tokenized assets like XAU₮ remains popular, but complex on-chain lending mechanics against those assets face adoption hurdles. The move highlights that tokenization alone does not guarantee market success, as users prioritize liquidity and clear utility over experimental financial structures. By narrowing its focus, Tether aims to capitalize on the sustained demand for direct gold exposure while exiting the less mature market for gold-backed synthetic dollars. Ultimately, this development serves as a strategic recalibration, signaling that the RWA market is becoming increasingly selective regarding which tokenized products solve genuine user needs.
Tokenized Stocks With Dividends: Why Coinbase’s On-Chain Shares Plan Matters for DeFi
The potential issuance of tokenized Coinbase shares represents a significant evolution in the RWA market by bridging traditional equity rights with decentralized finance infrastructure. By utilizing blockchain-based ledgers and registered transfer agents, such a move would allow for the programmable, automated distribution of dividends directly to investor wallets, likely via stablecoins like USDC. Unlike previous synthetic or offshore "stock token" experiments that lacked legal substance, a Coinbase-led initiative would prioritize regulatory alignment, including KYC/AML compliance and secondary trading on registered Alternative Trading Systems. This approach mirrors the operational success of existing tokenized funds like BlackRock's BUIDL on Ethereum and Franklin Templeton's on-chain money fund on Polygon. For the DeFi ecosystem, this development could introduce a new class of compliant, yield-bearing collateral that functions within permissioned, identity-verified protocols. The integration of L2 networks like Base further enhances the feasibility of these distributions by reducing transaction costs and improving user experience. Ultimately, this shift signals a transition toward more efficient, transparent corporate actions on public networks, provided issuers maintain rigorous legal and technical standards.
DeFi & L1L2 — 💎 Crypto.com launched Tokenized Stocks in the App; Vitalik Buterin proposed an option-based model for decentralized stablecoins
Crypto.com has expanded its platform offerings by launching tokenized stocks, providing retail investors with synthetic pre-IPO perpetual contracts. This development allows users to trade the trajectories of private tech companies 24/7, effectively dismantling traditional barriers to institutional exclusivity. Simultaneously, Vitalik Buterin has proposed a novel option-based model for decentralized stablecoins to address systemic risks inherent in current debt-based systems. By splitting assets into stable and volatile tokens, this model aims to eliminate forced liquidations and reliance on real-time oracles. These advancements arrive as market data indicates a broader rotation of capital from crypto assets toward high-growth equity sectors. While global equities like the Nasdaq Composite and MSCI Emerging Markets index saw significant gains in May, major cryptocurrencies experienced declines. These shifts highlight the growing integration of traditional financial instruments into decentralized ecosystems to enhance portfolio stability and accessibility.
Ondo Finance: Tokenized Stocks Reach $1.5 Billion
Ondo Finance President Ian de Bode recently highlighted the rapid expansion of the real-world asset sector, noting that tokenized U.S. Treasuries have surged from $1 billion to nearly $15 billion over the past two years. Simultaneously, tokenized stocks have achieved significant traction, surpassing $1.5 billion in market value since their launch in June of last year. This growth is largely fueled by robust offshore demand, with listings on major platforms like Binance, OKX, and MetaMask enabling global investors to access U.S. markets directly through their existing digital wallets. The integration of 24/7 trading cycles and stablecoin settlement mechanisms is effectively accelerating the migration of traditional financial instruments onto blockchain infrastructure. De Bode suggests that the potential introduction of perpetual contracts for tokenized stocks could eventually create a market exceeding the size of the current cryptocurrency industry. This shift underscores a broader trend of traditional finance adopting crypto rails to enhance liquidity and accessibility for global participants. The data reflects a maturing RWA ecosystem where institutional-grade assets are increasingly becoming accessible via decentralized interfaces.
Millions of EU crypto users face exchange cutoff as MiCA deadline hits in days
On July 1, 2026, the transitional permission period for the Markets in Crypto-Assets (MiCA) regulation expires, forcing a massive consolidation of the European crypto market. While over 3,000 crypto firms were registered in 2024, only 194 have secured the necessary licenses to operate, leaving approximately 75% of legacy operators facing imminent service termination. This regulatory shift mandates that exchanges, brokers, and wallet services either obtain official authorization or cease serving EU customers, with regulators like France’s AMF threatening criminal prosecution and fines for non-compliance. The transition is expected to cause significant service disruptions, including blocked deposits and forced withdrawals for millions of users who rely on unlicensed platforms. For the RWA market, this consolidation is critical as it restricts token availability, favoring compliant assets like USDC and EURC while effectively delisting non-compliant tokens like USDT. By centralizing custody and exchange access under a few well-funded, licensed institutions, MiCA is fundamentally reshaping the infrastructure through which European investors access tokenized real-world assets. Ultimately, the deadline serves as a stress test for the EU's goal of creating a unified, compliant market versus a fragmented landscape of national regulatory standards.
Franklin Templeton links on-chain fund BENJI with MoonPay for institutional liquidity hub
Franklin Templeton has integrated its on-chain U.S. Treasury money market fund, BENJI (FOBXX), with MoonPay Trade’s single API to enhance institutional liquidity. This partnership allows institutional investors to swap BENJI tokens directly for USDC and USDT, effectively removing the need for multiple intermediaries. By streamlining the conversion process, the integration creates a robust liquidity hub that supports various DeFi activities, including treasury management, collateralized lending, and portfolio rebalancing. This development marks a significant advancement in bridging traditional asset management with decentralized finance infrastructure. By addressing liquidity fragmentation, the move enables more efficient capital deployment for institutional participants within the on-chain ecosystem. As tokenized real-world assets continue to gain traction, such infrastructure improvements are critical for reducing operational complexity. Ultimately, this collaboration signals a growing convergence between traditional finance and DeFi, potentially accelerating institutional adoption of on-chain financial products.
Tether’s USDT Faces EU Delistings as MiCA Rules Reshape Stablecoin Market
The European Union’s Markets in Crypto-Assets (MiCA) regulation is set to trigger a significant shift in the stablecoin market as the July 1 deadline for legacy operators approaches. Tether’s USDT, which currently holds a dominant 58.78% share of the global stablecoin market, faces widespread delisting across EU exchanges due to its lack of authorization under the new framework. This regulatory transition puts approximately $17.5 billion in USDT liquidity at risk, forcing exchanges like Binance, OKX, and Kraken to restrict services for European customers. In contrast, Circle’s USDC has secured an Electronic Money Institution (EMI) license, positioning it as the primary beneficiary for liquidity migration. This shift highlights how stringent licensing requirements can reshape market dominance and settlement layers within the digital asset ecosystem. Furthermore, the EU's experience serves as a critical case study for South Korea, which is currently debating its own Digital Asset Basic Act. The outcome of these regulatory frameworks will likely dictate which stablecoin issuers become the default standard for global crypto trading and payments.
JPMorgan, Citi-backed Clearing House plans tokenized deposit network in 2027: WSJ
Major U.S. banks, including JPMorgan Chase, Citibank, and Bank of America, are planning to launch a tokenized deposit network in the first half of 2027. Operated by The Clearing House, this initiative aims to integrate traditional payment rails with digital asset infrastructure to facilitate 24/7 settlement. This strategic move serves as a direct response to the rising competition from stablecoin issuers that are increasingly encroaching on traditional finance territory. By offering the speed and programmability of blockchain-based assets, banks intend to retain deposits within regulated channels. The development highlights a broader industry shift as banking giants attempt to modernize their infrastructure to compete with public blockchain efficiency. This effort coincides with ongoing banking industry opposition to the Digital Asset Market Clarity Act, which could allow stablecoin issuers to offer yield-bearing products. Ultimately, the network represents a significant attempt by legacy institutions to reclaim their role in the evolving digital asset landscape.
EU opens consultation on MiCA stablecoin rules and DeFi gaps
The European Commission has launched a public consultation to review the Markets in Crypto-Assets Regulation (MiCA) framework, seeking feedback until August 31, 2026. This initiative aims to determine if the current regulations remain fit for purpose as the market evolves, with industry observers already discussing potential updates as MiCA 2. A primary focus of the review is the classification of tokenized financial instruments, including wrapped tokens and synthetic assets, which currently face ambiguity under existing law. The Commission is also re-evaluating the prohibition on interest-bearing stablecoins and exploring new regulatory approaches for decentralized finance (DeFi) and staking. By addressing these gaps, the EU intends to clarify the boundary between crypto assets and traditional financial instruments, which is critical for the growth of the RWA sector. Major industry players like Coinbase have welcomed the review as an opportunity to shape the future of digital finance. This development is particularly significant as the EU approaches the July 2026 deadline for full authorization of Crypto Asset Service Providers (CASPs).
MiCA Regulation and Crypto Compliance for Web3
The Markets in Crypto-Assets Regulation (MiCA), or Regulation (EU) 2023/1114, has fundamentally transformed the European crypto landscape by replacing fragmented national rules with a unified framework. Since the full application of the crypto-asset service provider (CASP) regime on December 30, 2024, firms operating in the EU must treat compliance as a core product design constraint rather than a background policy. The regulation imposes strict requirements on stablecoin issuers, specifically asset-referenced tokens (ARTs) and e-money tokens (EMTs), including a prohibition on paying interest to holders. As of late 2025, approximately 100 CASPs have secured full authorization, a group that notably includes several traditional credit institutions. This shift forces Web3 applications to reconsider liquidity strategies, as non-compliant stablecoins face restricted access on regulated exchanges. Furthermore, the regulation mandates rigorous data modeling for user eligibility, as simple IP-based checks are insufficient for regulatory defense. For the RWA market, MiCA establishes a reference model that prioritizes institutional-grade governance, reserve transparency, and consumer protection, likely favoring bank-backed entities over crypto-native firms.
Fidelity Deploys FIDD Stablecoin Pool On Uniswap, Signaling Institutional DeFi Push
Fidelity Investments has officially launched a liquidity pool for its proprietary stablecoin, FIDD, on the Uniswap decentralized exchange. This integration marks a significant shift for the asset manager, moving its stablecoin from internal institutional use to the broader, permissionless DeFi ecosystem. By utilizing Uniswap, Fidelity enables transparent, on-chain price discovery and trading without relying on centralized intermediaries. The FIDD token maintains a 1:1 peg to the U.S. dollar and is backed by cash and cash-equivalent reserves. This move provides FIDD with immediate access to deep liquidity and a global user base while offering regulators real-time visibility into transaction flows. The deployment serves as a bellwether for institutional adoption of public blockchain infrastructure, potentially encouraging other financial giants to follow suit. Ultimately, this development validates the security and reliability of decentralized protocols for regulated digital assets and institutional-grade capital.
Kraken Now Supports Deposits And Withdrawals Of USDCX On Canton Network
Kraken has officially integrated support for USDCx deposits and withdrawals on the Canton Network, marking a significant expansion in the interoperability of stablecoins across institutional blockchain ecosystems. This development allows users to move USDCx, a tokenized version of the USD Coin, seamlessly between the Kraken exchange and the Canton Network, a privacy-enabled, interoperable blockchain infrastructure designed for institutional finance. By bridging a major centralized exchange with a network specifically built for regulated financial institutions, this move reduces friction for capital movement in tokenized asset markets. The integration highlights the growing trend of major exchanges adopting specialized, permissioned, or enterprise-grade networks to facilitate institutional RWA workflows. As liquidity becomes increasingly fragmented across various chains, such connectivity is essential for the maturation of the RWA sector. This partnership underscores the Canton Network's role in connecting disparate financial systems while leveraging the liquidity of established stablecoins. Ultimately, this integration serves as a critical step toward creating a more unified and efficient infrastructure for the global tokenization of real-world assets.
Canton Network Expansion Gains Support From A16z, Citadel
Visa and Brale have initiated a proof-of-concept to test the SBC stablecoin as an institutional settlement layer utilizing the Canton Network's privacy-focused infrastructure. Simultaneously, SG-FORGE is integrating its EURCV and USDCV stablecoins onto the Canton Network to advance on-chain settlement and tokenized collateral capabilities. Bitwise has further expanded the ecosystem's visibility by launching the Canton ETP (BWCC) on the Deutsche Börse Xetra with a 0.85% expense ratio. These developments are supported by significant capital interest, as Digital Asset Holdings reportedly seeks $300 million in funding at a $2 billion valuation to drive network expansion. Furthermore, Arc, Canton, and Tempo have collectively raised over $1 billion, reflecting strong investor confidence in the platform's infrastructure. These moves collectively signal a shift toward institutional-grade, privacy-compliant blockchain rails for global financial settlement. By bridging traditional finance entities with interoperable ledger technology, the Canton Network is positioning itself as a critical backbone for the next generation of RWA tokenization.
‘Market integrity’ or DeFi risk? Paradigm, HPC question stablecoin rule scope
The Hyperliquid Policy Center and venture capital firm Paradigm submitted a joint comment letter to the U.S. Treasury regarding proposed stablecoin compliance rules linked to the GENIUS Act. While supporting the general framework, the organizations expressed concern that current proposals could inadvertently impose unworkable obligations on permissionless blockchain infrastructure and secondary market participants. The letter outlines six critical areas for improvement, specifically requesting clearer guidance on transaction blocking, sanctions compliance, and Customer Due Diligence requirements. By advocating for more precise definitions, the groups aim to prevent overly stringent regulations from stifling DeFi innovation or forcing operations into offshore jurisdictions. Furthermore, the commentary addresses the distinction between stablecoin issuers and third-party entities regarding yield distribution, noting that the proposed CLARITY Act seeks to preserve activity-based rewards. This regulatory dialogue highlights the ongoing tension between maintaining market integrity and preserving the functional nature of decentralized networks. As the New York State Department of Financial Services works to align its oversight with federal standards, these recommendations serve as a pivotal effort to ensure compliance frameworks remain compatible with blockchain technology.