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David Sacks Says Stablecoin Bill Could Generate Trillions in Demand for US Treasuries

Author: Abdulkarim Abdulwahab
United States
May 23, 2025 03:40

David Sacks Says Stablecoin Bill Could Generate Trillions in Demand for US Treasuries

White House crypto advisor David Sacks says the U.S. could see a surge in demand for Treasuries "practically overnight" if the GENIUS Act stablecoin bill is passed.Specifically, he claimed the move could generate trillions of dollars in demand for U.S. government debt.From $200B to Multi-Trillion-Dollar MarketIn an interview on CNBC, Sacks emphasized that the current $250 billion stablecoin market is largely unregulated. He argued that once a legal structure is in place, the market could expand to the multi-trillion-dollar level, driven by global demand for dollar-backed digital assets fully collateralized by U.S. Treasuries.Notably, the GENIUS Act would require stablecoins to be fully backed by U.S. Treasuries or equivalent cash assets. It would also introduce anti-money laundering (AML) compliance standards and impose registration and auditing requirements for issuers exceeding $50 billion in market cap. At the moment, only Tether and Circle meet this rule.Sacks prediction is already partly due to market behavior. Tether, the largest stablecoin issuer, disclosed on May 1 that it holds nearly $120 billion in U.S. Treasury securities. Interestingly, this figure places it ahead of countries like the UAE and Germany among the largest holders of the government asset, according to U.S. Treasury data.This shows that even in the absence of regulation, stablecoin issuers are turning to U.S. Treasuries as a trusted reserve asset, a trend that could accelerate if the bill passes.Bitwise CIO Matt Hougan echoed Sacks optimism, stating that the bill could kick off a multi-year bull run in crypto markets. He projects the stablecoin sector could reach $2.5 trillion in no time, driven by institutional adoption and legal certainty.Meanwhile, other prominent commentators like Senator Bill Hagerty have an even bolder perspective. Hagerty asserted that stablecoin issuers could even emerge to be the largest holders of U.S. Treasuries.Senate Momentum on Stablecoin BillNotably, the stablecoin bill is gaining bipartisan momentum. The Senate voted 6632 to advance the legislation earlier this week, with 15 Democrats joining Republicans. The vote clears the path for a final vote, barring further amendments.Despite bipartisan support, the bill faces criticism from most Democratic lawmakers. Senators Elizabeth Warren and Richard Blumenthal have voiced concerns over potential conflicts of interest.Particularly, their concerns have been around World Liberty Financials USD1 stablecoin, which has ties to the Trump family.Blumenthal warned that the bill, if unchecked, could allow foreign entities to exploit U.S. financial infrastructure under the guise of decentralization. Warren criticized the legislation for not including stronger guardrails to prevent political entanglements.Meanwhile, Sacks declined to address the Trump family's concerns directly but emphasized that the bill would help maintain U.S. dollar dominance and modernize the countrys payment rails.

May 23, 2025 03:40

Two Stablecoins, MiCA-Compliant EURØP and Braza Groups USDB, Debut on XRP Ledger

Two new fiat-backed stablecoins, EURØP and USDB, have launched on the XRP Ledger (XRPL). Their arrival follows the U.S. Senates advancement of the GENIUS Act, a bill focused on stablecoin regulation. Both digital assets aim to provide compliant, cross-border transaction solutions at a time of increasing scrutiny and regulatory clarity. MiCA-Compliant EURØP Introduced by Schuman FinancialNotably, European stablecoin finance firm Schuman Financial has launched EURØP on the XRPL as the first MiCA-compliant euro stablecoin to operate on this blockchain. https://twitter.com/thecryptobasic/status/1925493461702017414The company, regulated by the ACPR under the French Central Bank, confirmed that EURØP is fully backed by euros and redeemable. Additionally, KPMG audits its reserves, which are held at financial institutions such as Societe Generale.The integration positions EURØP as a euro-native settlement asset, supporting enterprise-grade blockchain activity. Over the past decade, the XRP Ledger has processed over 3.3 billion transactions and maintains more than 200 validators. With these capabilities, EURØP can support a wide range of use cases, including decentralized finance applications, tokenized real-world assets, and both B2B and B2C payments. According to Ripples Managing Director for UK & Europe, Cassie Craddock, this move aligns with Europes evolving regulatory environment and increasing institutional adoption.USDB Launches with Support from Braza GroupMeanwhile, Braza Group, a Brazilian financial services company, has introduced USDB, a USD-backed stablecoin that is now live on the XRPL. Pegged 1:1 to the U.S. dollar, USDB is backed by U.S. and Brazilian government bonds. Braza reports that these assets undergo regular audits to ensure transparency and compliance. The company is already known for its operations in the Brazilian interbank market, moving over $1 billion in 24 hours this past April.USDB joins Brazas earlier stablecoin, BBRL, offering a unified infrastructure on XRPL. With both assets live, the company seeks to expand its blockchain-enabled financial services. Brazas CEO, Marcelo Sacomori, stated that the new stablecoin will help mitigate currency volatility and enhance transaction speed for local and international users.According to the firm, USDB facilitates swift, affordable global transfers, making it especially useful for individuals sending funds across borders or looking to safeguard their savings in a stable currency. Beyond remittances, it plays a key role in broadening access to digital finance, helping create a more inclusive and equitable financial ecosystem.

May 18, 2025 03:35

The Senate Will Make History and Pass the GENIUS Stablecoin Act Next Week: Senator Bill Hagerty

Senator Bill Hagerty, one of the sponsors of the GENIUS stablecoin act, remains upbeat that the bill will pass Senate approval next week. On Friday, he released a statement with co-sponsor Kirsten Gillibrand, expressing optimism that the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, up for debate and deliberation on May 19, will gain bipartisan support.Senator Hagerty announced that the Senate is set to make history in the coming week by debating and approving the GENIUS Act, which aims to create the first regulatory framework focused on supporting growth for payment stablecoins.History on Course Amid Draft AmendmentOn May 8, the GENIUS Act faced a major hurdle in Congress, failing to meet the 60 votes required for cloture. 49 votes stood against progressing the proposal for final passage, with 48 favoring the course.Some notable loopholes Democrats identified that caused their change of disposition toward the bill include the current texts unclear provisions on anti-money laundering, foreign stablecoin issuance, and customer protection.Meanwhile, bipartisan efforts to amend the GENIUS Act texts are ongoing, FOX Business journalist Eleanor Terret confirmed Thursday. The new draft making the rounds includes alterations on customer protection, bankruptcy, and ethics.https://twitter.com/EleanorTerrett/status/1923024441451110874For context, the amendments prevent Big Tech firms like Meta or Google and special government employees like Elon Musk from venturing into stablecoin issuance. Furthermore, there are speculations about an amendment giving stablecoin holders exceptional treatment in the case of bankruptcy filings.With the bipartisan efforts ongoing, Senator Hagerty has expressed optimism that the GENIUS Act will advance next week. He again sold the bill in the post, noting that stablecoin legislation would increase the US dollar's dominance and demand for US Treasuries while ensuring that digital asset innovations thrive in the United States.Notably, the GENIUS Act needs 60 votes to advance next week. The majority approval would set the precedent for passing into law subsequently.The Expanding Stablecoin SectorStablecoins offer stability for potential investors with a 1:1 peg to fiat currencies. Currently, the sector has a market cap of $246 billion, with major issuers like Tether and Circle dominating proceedings. Tethers USDT has a cap at $151 billion, and Circles USDC has a valuation of $61 billion.Meanwhile, stablecoin utility is rising, with major institutions and governments teeing up large-scale adoption. Mastercard recently partnered with MoonPay to simplify stablecoin payments for over 150 million merchants globally.

May 16, 2025 03:35

Mastercard Taps MoonPay to Simplify Stablecoin Payments for 150M Businesses Globally

Mastercard will roll out new crypto card solutions for stablecoin off-ramp payment with its latest collaboration with MoonPay.Mastercard's intentions have been clear from the start: it wants to deepen its presence in the digital asset industry. Today, that foray continued with a new collaboration with crypto payment solution MoonPay.In a Thursday press release, Mastercards latest partner, Moonpay, announced that it will work closely with the card giant to simplify stablecoin payments. The new linkup will make crypto payments seamlessly available to 150 million businesses globally.Mastercard to Leverage MoonPay for Stablecoin PaymentMastercard recently disclosed that it is developing a blockchain-based protocol to facilitate crypto transactions among retail and institutional users. The initiative would simplify on-ramp and off-ramp payments, with the firm likening it to a Venmo or Zelle-like system.Today, it aims to make stablecoin payments available to millions of users globally. At the center of this new initiative is MoonPays Iron technology, an infrastructure platform that provides stablecoin payment APIs, allowing merchants and fintechs to integrate rails for swift crypto payments. Notably, MoonPay acquired the firm in March 2025.MoonPay stressed that the integration will give every crypto wallet instant access to virtual Mastercards for stablecoin-powered transactions. Meanwhile, stablecoin adoption has continued to swell as traditional finance acknowledges the crypto's potency in several applications, including payments.The fiat-pegged digital asset sector has grown to a $245 billion industry amid increasing traction. In 2024, stablecoin transfer volume reached $27.6 trillion, trouncing the combined volume of Visa and Mastercard.Easing Stablecoin RegulationMeanwhile, two stablecoin bills recently gained Congress approval as the United States facilitates efforts to create a regulatory framework. The STABLE Act and GENIUS Act could soon be passed into law pending the decision from the full House floor. However, it bears mentioning that the GENIUS Act recently faced a major hurdle in Congress.In the meantime, the stablecoin industry still has hovering uncertainties around its classification. While the US Securities and Exchange Commission has attempted to classify the currency as non-security, its exemption of algorithmic stablecoins failed to clear the lingering doubts.Nonetheless, the regulator recently dropped charges against PayPals stablecoin (PYUSD), reflecting its friendly disposition towards the sector.

May 02, 2025 03:40

Trump-Backed Stablecoin USD1 to Power $2 Billion Binance Deal with Abu Dhabis MGX

World Liberty Financials USD1 stablecoin has officially been selected by Abu Dhabi-based MGX for the $2 billion investment in Binance. For perspective, in March 2025, Binance announced MGX's substantial investment, which represented the exchange's first institutional placement. While the deal highlighted stablecoin as the preferred mode of exchange, it was initially unclear which specific currency was involved. However, World Libertys USD1 has now been confirmed as the stablecoin to facilitate the historic deal. In particular, this confirmation came from World Libertys co-founder, Zach Witkoff, during the ongoing Token2049 crypto conference in Dubai.Witkoff stated that USD1 would facilitate Abu Dhabi-based MGX's $2 billion investment in Binance, the worlds largest cryptocurrency exchange.USD1 Stablecoin and Its BackingUSD1 is one of the most transparent stablecoins in the market, backed by short-term treasury and cash equivalents. According to U.S. President Trumps son, Eric Trump, World Libertys commitment is to ensure transparency, which is a primary factor in the stablecoins development. Trump emphasized that consumer safety remains a core priority for the company, which aims to build a product that can seamlessly move across borders. The stablecoin's structure aims to meet regulatory expectations and provide a secure financial tool for cross-border transactions.Witkoff discussed future plans for USD1 during the event. The company, backed by President Donald Trump, is working on further developments in decentralized finance, particularly integrating USD1 into DeFi and centralized finance ecosystems. Witkoff also mentioned that USD1 will soon be integrated into traditional retail point-of-sale systems.Cross-Chain Integrations for USD1Currently distributed on the Ethereum and Binance Smart Chain (BSC) blockchains, USD1 will expand its reach to the Tron network. This integration aligns with World Libertys strategic goals of increasing global adoption and expanding the use cases of stablecoin.Justin Sun, the founder of Tron, confirmed his crypto projects $75 million investment in World Liberty as of January 2025, further supporting the stablecoins push for wider integration.https://twitter.com/trondao/status/1917896060061843859

Apr 06, 2025 03:35

US SEC Concludes that Most Stablecoins Are Not Securities

The US SEC has confirmed that most stablecoins are not securities as bills seeking clear regulation for the asset class gain momentum.The US Securities and Exchange Commission has clarified that most stablecoins do not pass as securities. In an April 4 statement, the regulator disclosed this stance as bills seeking to create a framework for stablecoins in America gain momentum.Specifically, the agencys Division of Corporate Finance mentioned that the sales of Covered Stablecoins do not constitute offering unregistered securities under the Securities Act of 1933. It described Covered Stablecoins as assets designed to maintain a one-to-one value relative to the US dollar, can be redeemed with the same valuation as the dollar, and have reserves fully backing or exceeding the redemption value of the tokens in circulation.Covered Stablecoins Exonerated as SecuritiesNotably, the US SECs Friday statement marks its clearest position on the classification of a cryptocurrency yet. With this, the SEC has clearly mentioned what it classifies as Covered Stablecoins, inferring that parties involved in minting and redeeming this asset class do not need to register with the agency.Nonetheless, the regulator's description of Covered Stablecoins does not include algorithmic stablecoins, which describes dollar-pegged assets not backed by traditional collateral but relying on smart contracts to maintain their peg.The SEC noted that it would provide further regulatory clarity on this category of stablecoins.SEC Maintains Reservation on Interest PaymentWhile the clarity appeased the crypto enthusiasts and even drew comments from David Sacks, the crypto and AI czar, a clause remains. The top regulator maintained that stablecoins should not be yield-bearing for holders.Per the statement, stablecoins have their use in commercial transactions, and users can adopt them as a store of value. As a result, the SEC overruled the concept that users can purchase Covered Stablecoins for investment purposes.Remarkably, this comes despite Coinbase CEO Brian Armstrongs March 31 X article urging Congress to allow yield-sharing between stablecoin issuers and holders. He insisted that legislation should accord issuers the same rights as banks to disseminate profits to customers, arguing it was consistent with a free market approach.https://twitter.com/brian_armstrong/status/1906723887112401179Nonetheless, the stablecoin clarity comes on the heels of recent breakthroughs in the assets legislation in the United States. For context, the US House Committee passed the STABLE Act this week, while the US Senate Banking Committee approved the GENIUS Act in mid-March.

Apr 18, 2025 03:35

Russian Officials Explore Stablecoin Alternatives After Tether Wallet Blockade

Russia is considering the development of its own stablecoins following a recent action by Tether to block wallets linked to Russian exchanges.Notably, the issuer of the widely used USDT stablecoin recently blocked wallets tied to Russian exchanges. This action occurred against the backdrop of ongoing Western sanctions. As a result, Russian officials are considering alternatives for conducting international transactions.Russia to Create Its Own StablecoinsA senior official from Russias Finance Ministry, Osman Kabaloev, has stated that the country is now looking into the creation of stablecoins that could be pegged to foreign currencies other than the US dollar. Kabaloev noted that the recent block on USDT wallets has led to serious reconsiderations about developing local digital assets, possibly based on currencies like the euro or others not directly impacted by sanctions.This shift in approach comes after a significant move by Tether, which froze over $30 million worth of USDT held on the Garantex exchange. The suspension occurred in March after the European Union imposed sanctions on the exchange due to its connections with Russian financial institutions that are also sanctioned. The ban on Garantex's digital wallets disrupted the exchange's operations, including halting crypto withdrawals. Cryptos Growing Role in RussiaNotably, Russian businesses have increasingly turned to digital assets for cross-border trade despite domestic opposition to crypto. Russia has allowed limited use of digital currencies in international transactions, with some companies testing crypto payments. This trend has accelerated as Western sanctions have made traditional payment methods more difficult.One notable development is using cryptocurrencies in Russia's oil trade with China and India. Reports suggest that Russian oil companies are leveraging crypto, including Bitcoin and Ethereum, as part of a strategy to convert Chinese yuan and Indian rupees into Russian rubles. This new payment method, although still small, is part of Russias broader strategy to avoid reliance on Western financial systems. Russia's oil exports, valued at $192 billion in 2024, could see further integration of crypto as part of a wider push to bypass financial restrictions.

Mar 26, 2025 03:35

Custodia Bank Launches First US Bank-Issued Stablecoin on Ethereum

Custodia Bank is venturing into the stablecoin business.On Tuesday, March 25, Custodia Bank disclosed that it had collaborated with Vantage Bank to tokenize U.S. dollar demand deposits on Ethereum, making the token "Avit" the first-ever U.S. bank-issued stablecoin on a permissionless blockchain.Additionally, Custodia asserts that the product complies with all relevant anti-money laundering and sanctions regulations.Commenting on the development, Custodia Bank founder and CEO Caitlin Long stressed that Avit opened the door for legacy finance to benefit from blockchain technology's global, permissionless, low-cost, and programmable nature within the banking system, something she asserts was not previously possible.https://twitter.com/CaitlinLong_/status/1904523878195507299?t=fw1xXqxRbY8YUdPsUu4i1w&s=19She argued that unlike other stablecoins classified by the Federal Reserve as synthetic dollars, Avit represented "real dollars" as it was issued by a bank authorized to take demand deposits. This distinction, she believes, will likely lower the barriers to entry for traditional finance (TradFi).However, it is not Avit's blockchain adoption potential that has caught the attention of crypto natives. "Bitcoin Maxi Issues Stablecoin on Ethereum"For many observers, the shock is the decision of Custodia, run by Long, a notorious Bitcoin maximalist, to launch on Ethereum. The situation was made even more ironical as Custodia seemed to shy away from mentioning Ethereum in their announcement, with some poking the crypto bank to "say Ethereum."https://twitter.com/AlexanderFisher/status/1904500864867328374?t=kWKfyRPaQVFKUzbXmBO1-w&s=19Even VanEck's Head of Digital Assets Research, Matt Sigel, joined in on the jabs, humorously "fixing" the Custodia announcement headline to: "Bitcoin Maxi Issues Stablecoin on Ethereum."https://twitter.com/matthew_sigel/status/1904499035945181475?t=VbQhUvdyVSZdiV4TjbrFUA&s=19Whatever the case, Custodia's recent venture comes as the Trump administration is pushing for stablecoin regulations before the end of the year.In line with this push, the Senate Banking Committee recently passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to a full Senate vote.

Mar 15, 2025 03:40

US Senate Banking Committee Approves GENIUS Stablecoin Bill

The U.S. crypto industry is moving a step closer to having stablecoin regulation signed into law as the Senate Banking Committee approves the GENIUS Act. The approval came on Thursday with an 18 to 6 vote in favor of the bill. This approval marks a major step toward President Donald Trump signing the stablecoin bill into law. For context, GENIUS stands for the Guiding and Establishing National Innovation for U.S. Stablecoins ActNext Line of Action Following the Senate Banking Committees approval, the bill will be sent to the full Senate for passage. It is worth noting that a similar version of the GENIUS Act is also awaiting approval in the House of Representatives. Hence, both bills must be combined before being signed into law to regulate stablecoin issuers at the federal level. Debates Leading to GENIUS Act Approval The approval follows a committee hearing that lasted over two hours. Although the GENIUS Act received bipartisan support, some Democratic Senators proposed additional measures to include regulatory limits and controls.  Crypto critic Elizabeth Warren (D-MA) expectedly expressed concerns about the passage of the GENIUS Act, emphasizing that it poses national security risks. During the hearing, she criticized the idea of moving forward with the bill amid reports that the President is seeking to develop his own stablecoin via a partnership with a company notorious for breaking the law.The report Warren cited relates to alleged discussions between Trumps family project World Liberty Financial, and Binance. For context, WSJ reported that Binance sought a presidential pardon for its founder, Changpeng Zhao (CZ), in exchange for a business deal with World Liberty. However, CZ denied this claim, noting that the WSJ report was misleading. Despite CZs statement, Warren still thinks it is improper to advance the GENIUS Act amid the rumors, asserting, Well regret this! In contrast, Republicans on the Senate Banking Committee, including Senator Tim Scott, defended the process. Senator Scott, who chaired the Committee, noted that the approval aligns with the Committee's commitment to providing U.S. investors with regulatory clarity. In his view, the advancement of the stablecoin bill will keep innovation on American soil rather than driving it overseas. New Amendments Meanwhile, the committee made some bipartisan amendments to the GENIUS Act before its approval. Eleanor Terrett, a pro-crypto journalist and host of the Crypto America Podcast, highlighted some of these amendments in a tweet yesterday. They include clarifications for payment stablecoins not issued by permitted issuers, the prohibition of using deceptive names for stablecoins, and the prioritization of stablecoin customers over creditors during a bankruptcy. Ripple CEO Reacts Reacting to the development, Ripple CEO Brad Garlinghouse declared that stablecoin regulation is moving forward in the United States. He took a moment to appreciate the commitment of some Senators like Bill Hagerty, Cynthia Lummis, Kirsten Gillibrand, and Tim Scott for their efforts on the GENIUS Act. https://twitter.com/bgarlinghouse/status/1900276091920564225

Mar 14, 2025 03:35

Stablecoin Supply Spikes by $20B+ in Q1 2025: Heres What This Could Mean for Bitcoin Recovery

Stablecoins are witnessing a massive surge in supply, and this trend could be beneficial for Bitcoin and the crypto market in the long term.Blockchain analytics firm Glassnode reports that since the beginning of the year, the total stablecoin supply has grown by 10.9% or $20.17 billion.This comes after a contraction in supply during the final weeks of 2024 when the total stablecoin supply dropped from $187 billion in December to $185 billion by January 2025. Notably, the contraction was likely due to investors capitalizing on the market uptrend.Stablecoins Market Cap Percentage Change | GlassnodeHowever, as the market drops, over the past 30 days, the stablecoin supply expanded by $3.33 billion, reflecting a 1.65% increase. This growth rate is comparable to levels observed in September 2024, when stablecoin inflows reached $2.37 billion. On a quarterly basis, stablecoin supply rose by $23.86 billion in Q4 2024, a 14.7% increase, while Q1 2025 has already recorded a $20.17 billion rise, reflecting a 10.9% expansion. The increase across the last two quarters outpaced the combined supply rise in Q2 and Q3 2024, which amounted to $18.6 billion, or 10.2%.Stablecoin Market Cap Surges to $232.5 BillionData from CoinMarketCap reveals that the global stablecoin market capitalization has reached $232.5 billion, fueled by the recent supply expansion. Tether (USDT) remains dominant in the market, holding a commanding 61.5% share with a market cap of $143 billion. Despite facing regulatory scrutiny under the EU's Markets in Crypto-Assets (MiCA) framework, USDT continues to lead stablecoin transactions globally.Meanwhile, USD Coin (USDC) follows as the second-largest stablecoin, with a market cap of $58.4 billion. This continued growth in stablecoin valuations shows an increasing preference for stable assets, particularly during periods of market volatility.A look at recent on-chain activities suggests that the surge in stablecoin supply is being driven by fresh mints from major issuers like Tether and Circle. Blockchain monitoring platform Whale Alert has tracked multiple large-scale stablecoin issuances over the past few days.Circle, the issuer of USDC, has minted an additional 300 million USDC today alone, having issued $250 million an hour ago. Over the past week, Circle has minted $1.4 billion worth of USDC through multiple transactions.Tether has also ramped up its stablecoin issuance. On March 2, the company minted a staggering $1 billion worth of USDT in a single transaction. Since then, Tether has been actively transferring millions of USDT from its treasury to Bitfinex, a crypto exchange owned by iFinexthe parent company of Tether. This follows another major issuance of $1 billion USDT on Feb. 28.https://twitter.com/whale_alert/status/1895573043281297914Can Stablecoin Growth Fuel Bitcoin Recovery?Amid these fresh mints, Bitcoin is currently navigating a critical price zone near the $80,000 mark as the market turbulence persists. The rise stablecoin supply could play a major role in determining Bitcoin's next move.A surge in stablecoin supply typically shows an increase in sidelined buying power within the crypto market. Traders and institutional investors often hold stablecoins in anticipation of favorable market conditions before deploying funds into assets like Bitcoin and Ethereum. If confidence in Bitcoin strengthens, the newly injected liquidity from stablecoin mints could drive renewed buying pressure. Historically, a rise in stablecoin supply has correlated with increased demand for Bitcoin, as traders use stablecoins to enter long positions.

Feb 27, 2025 03:40

Bank of America Reveals Plans to Launch USD Stablecoin

Bank of America (BofA), the second largest bank in the United States, has hinted at plans to roll out its USD-backed stablecoin. Brian Moynihan, the CEO of BofA, made the disclosure in an interview with David Rubenstein at the Economic Club of Washington D.C. During the interview, Moynihan emphasized that the stablecoin business is imminent and poised to go mainstream soon. He referred to stablecoins as digital assets backed by fiat currencies, like the U.S. dollar. Notably, Moynihan suggested that these digital assets can function like a money market fund or bank account. With Moynihan expecting stablecoins to go mainstream, he revealed that the second-largest U.S. bank may introduce a stablecoin, referred to as the BofA token, tied to U.S. dollar deposit accounts. However, he noted that the bank would only launch the digital asset if the U.S. government legalized stablecoins. Ongoing Efforts to Regulate USD Stablecoins It bears mentioning that the United States government is pushing to pass stablecoin legislation. Last year, Rep. French Hill (R-AR) disclosed that the United States Congress will prioritize crypto legislation, including those relating to stablecoins, in 2025. Due to its aggressive stance toward crypto, the previous administration sabotaged efforts to pass stablecoin regulation. However, crypto enthusiasts are optimistic that the U.S. will soon welcome favorable legislation for stablecoins. This speculation is driven by Donald Trumps executive order for the digital asset markets. The order mandates a presidential committee to establish crypto regulation at the federal level. Specifically, the order pushes for the sovereignty of the U.S. dollars by promoting the growth and development of dollar-backed stablecoins globally. BofA Faces Stiff Competition From Established Stablecoin Issuers Should the government establish the necessary regulation, BofA may launch its own dollar-backed stablecoin. However, the bank faces stern competition from established brands like Tether (USDT) and USD Coin (USDC).Currently, stablecoins USDT and USDC have valuations of $142.02 billion and $56.25 billion, respectively. They account for 86.55% of the $229.06 billion global stablecoin market valuation. Other dominant USD-backed stablecoins include Ethena USDe (USDe), Dai (DAI), First Digital USD (FDUSD), and PayPal USD (PYUSD). These stablecoins are worth $5.87 billion, $5.36 billion, $2.13 billion, and $703.38 million, respectively.

Feb 18, 2025 03:35

Standard Chartered, Animoca Brands, and HKT Partner to Launch Hong Kong Dollar-Backed Stablecoin

Standard Chartered Bank, HKT, and Animoca Brands are establishing a joint venture to issue a Hong Kong dollar-backed stablecoin. According to a press release today, the initiative follows the new regulatory framework set by the Hong Kong Monetary Authority (HKMA). The partnership aims to secure a license under this regime to introduce a compliant stablecoin into the financial system.Bank-Grade Infrastructure and Stablecoin ExpertiseStandard Chartered has a history of working with stablecoin issuers globally. The banks involvement enables the joint venture to utilize its established infrastructure and governance frameworks. Moreover, SCBHK has participated in all HKMA-led tokenized money projects in recent years, reinforcing its position in Hong Kongs digital asset sector. The bank's role in the joint venture aligns with its broader strategy of supporting tokenized financial instruments, including stablecoins and central bank digital currencies. SCBHK intends to contribute governance, compliance, and risk management expertise to the venture.Notably, the new stablecoin initiative is expected to play a role in integrating digital assets with traditional finance. Standard Chartereds participation in HKMAs stablecoin issuer sandbox has positioned it among the early players in Hong Kongs regulated stablecoin market. The venture plans to introduce a stablecoin designed for use across multiple applications, ensuring security and reliability for institutions and individuals.Digital Payment Use CasesAnimoca Brands, headquartered in Hong Kong, will provide its expertise in the Web3 ecosystem. The companys involvement will enable the joint venture to explore innovative stablecoin applications in blockchain-based transactions. Animoca Brands has emphasized the growing role of stablecoins in Web3 and aims to leverage its network to drive adoption. The venture will develop new use cases for stablecoins in retail and enterprise sectors.Meanwhile, HKT, a leader in telecommunications and digital payments, will contribute its mobile wallet infrastructure. The company aims to integrate stablecoins into domestic and cross-border transactions, enhancing efficiency in digital payments. HKT plans to utilize advanced Web3 technologies to support merchant transactions while ensuring security in digital payments.

Feb 12, 2025 03:35

Stablecoin Market Adds Nearly $17B in 2025: Heres Why This Can Be Bullish for Bitcoin and Crypto

The stablecoin market has grown in valuation recently, and this could be bullish for Bitcoin and other risk assets.The stablecoin market has expanded significantly in 2025, adding about $16.97 billion since the start of the year, according to blockchain analytics platform Glassnode.https://twitter.com/glassnode/status/1889294602856702202The firm revealed that the total stablecoin circulating supply has risen from about $194.2 billion to around $211.2 billion this year. Notably, this growth suggests increasing liquidity in the crypto market.  Stablecoin Growth Trends in 2025  However, Glassnode noted that stablecoin issuance has not been uniform throughout the year. In November and December 2024, the market grew by roughly $450 million every day. Nonetheless, the pace slowed in January 2025, averaging $400 million per day. This month, growth picked up again, with an average daily increase of $541 million.  Mid-January saw a notable spike, as the seven-day average stablecoin issuance moved above the 30-day simple moving average (SMA). This indicated renewed short-term demand, signaling that capital is flowing back into crypto.  Stablecoin Circulating Supply | GlassnodeFor context, several large stablecoin issuances have occurred over the past week alone. On Feb. 4, blockchain tracking platform Whale Alert reported that Tether minted 1 billion USDT in a single transaction. https://twitter.com/whale_alert/status/1886823605784240372Additionally, Circle, the issuer of USDC, minted 750 million USDC across three separate instances on Feb. 4, 6, and 7, with each issuance totaling 250 million USDC. Further, in total, Circle has created 1.057 billion USDC in February alone. Paxos, the issuer of PYUSD, also added 65 million PYUSD to the supply this month. USDT Dominates the Stablecoin Market Despite MiCA ChallengesNotably, the stablecoin market capitalization has now grown to $230 billion, according to CoinMarketCap. Tether continues to lead, with a market cap of $141.9 billion, despite facing regulatory issues under the European Union's MiCA framework, which has led to delistings.  USDC follows with a market capitalization of $56.2 billion. Ethena USDe (USDe) ranks third with $6 billion, while Dai (DAI) holds the fourth position with $5.3 billion. Why Stablecoin Growth Can Be Bullish for Bitcoin and Crypto  The increasing stablecoin supply is often a precursor to higher buying pressure in the crypto market. When investors hold more stablecoins, they usually position themselves to buy risk assets, which can drive prices higher.  Meanwhile, Santiment recently reported that crypto traders had shifted their attention toward Bitcoin and Layer-1 blockchains, such as Cardano, Toncoin, Solana, and Ethereum. https://twitter.com/santimentfeed/status/1889065568101413148These assets collectively account for 44.2% of discussions in the crypto community. Meanwhile, interest in meme coins like Dogecoin, Shiba Inu, and Pepe has declined.  According to Santiment, this change leads to a more stable market environment. Meme coins typically thrive on speculative hype, but when the focus moves to Bitcoin and Layer 1 networks, it suggests a more mature and sustainable growth phase. Historically, excessive speculation in meme coins has preceded market corrections. In contrast, rising interest in core blockchain infrastructure often points to a stronger foundation for long-term growth.

Jan 03, 2025 03:35

MiCA Now Fully Live: Heres What That Means for the Crypto Industry

The European Union's crypto regulatory framework MiCA goes into full force, heralding significant changes for the industry.Major events like the ICO boom and the implosions of Terra and FTX have made it impossible for regulators and lawmakers to ignore the crypto industry, especially as its adoption continues to grow. Leading the charge in the effort to foster responsible innovation is the European Union, with its Markets in Crypto-Assets (MiCA) regulatory framework, which passed in April 2023 after nearly three years of development.While the implementation of the rules was phased, with rules targeting stablecoin issuers coming into force in June 2024, all parts of the framework have now entered into force since December 30, 2024. Here's what MiCA brings to the table and how it is reshaping the EU's crypto landscape.What is MiCA?The primary goal of MiCA is to ensure consumer protection in crypto while offering regulatory certainty for companies across the 27-member bloc. MiCA tries to achieve this by setting transparency and accountability standards for crypto asset issuers and crypto asset service providers (CASPs). The rules allow market participants to obtain licensing in one country and passport their services across the bloc.Key MiCA ProvisionsFor crypto asset issuers, the rules mean new disclosure requirements. Specifically, before introducing a new asset, issuers must draft a detailed whitepaper containing key details about its tokenomics, risks, and consensus mechanism.This whitepaper must be submitted to a national authority that does not have to explicitly approve the token launch but reserves the power to block it. At the same time, these issuers must also comply with marketing disclosures.Requirements for stablecoin issuers, however, go beyond these disclosure obligations. They must obtain electronic money institution (EMI) licenses, which impose significant Anti-Money Laundering (AML), Know-Your-Customer (KYC), and audit obligations.The law also imposes high stablecoin requirements regarding liquidity, redemption, and wind-down procedures and outlaws algorithmic stablecoins.For CASPs, MiCA means implementing robust KYC systems, establishing custody policies for the safekeeping of customer funds, and implementing robust market abuse detection and reporting systems.Beyond these, MiCA also places a de-facto ban on privacy coins.Which Companies are Affected by MiCA?MiCA impacts every crypto issuer or service provider operating within or offering services to EU residents. These include stablecoin providers like Circle and Tether, exchanges like Binance, Coinbase, and Kraken, and even custodians such as BitGo.Tether in FocusBy far, the major talking point to come out of MiCA's passing has been its implications for the EU's stablecoin landscape, especially as Tether, the largest stablecoin issuer, has not pursued a license in the bloc, unlike its biggest competitor, Circle.As a result, several crypto exchanges have moved to delist Tether USD (USDT) and Euro Tether (EURT) as part of efforts to obtain licensing in the region. While it is unclear whether Tether will reverse its decision in the future, MiCA's coming into force has likely contributed to the $2 billion decline in USDT's market cap over the past two days from nearly $139 billion to about $137 billion.Companies Still Have TimeEven though MiCA is now entirely in force, the law grants firms a window of grace to process licensing applications.For stablecoin issuers, this window was set at 12 months from the law's implementation, which gives companies until June 2025, as parts of the rules targeting stablecoins came into force in June 2024.For CASPs, this window was set at 18 months, giving firms till June 2026 to obtain licensing or cease operations in the EU.Meanwhile, even as firms race to comply with MiCA, regulators are already considering an update to cover DeFi and NFTs.

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