Study Uncovers Surprising Data: 90% Of Stablecoin Transactions Not Driven By Human Users

In a recent report by Bloomberg, it has been revealed that more than 90% of stablecoin transaction volumes do not originate from genuine users, according to a new metric co-developed by Visa. Stablecoin Market Faces Data Reality Visa and Allium Labs have created a dashboard designed to filter out transactions initiated by bots and large-scale traders to isolate those made by real individuals. Out of approximately $2.2 trillion in total transactions recorded in April, a mere $149 billion was identified as “organic payments activity” by Visa. The data challenges the optimistic outlook of stablecoin proponents who believe these tokens can transform the $150 trillion payments industry.  Related Reading: 900 Million Telegram Users Send TON Token Soaring 15% Details Fintech giants such as PayPal Inc. and Stripe Inc. have been exploring stablecoins, with Stripe co-founder John Collison expressing bullishness on the tokens due to “technical improvements.”  Pranav Sood, the executive general manager for EMEA at payments platform Airwallex, commented on the findings: “It says that stablecoins are still in a very nascent moment in their evolution as a payment instrument.”  Sood emphasized the need to focus on increasing existing payment infrastructure in the short and mid-term while acknowledging the long-term potential of stablecoins. Accurately tracking crypto activity’s “real” value using blockchain data has always been challenging. Glassnode, a data provider, estimates that the record $3 trillion assigned to digital tokens at the bull market’s peak in 2021 was closer to $875 billion. Analysts Predict Massive Surge Ahead According to Bloomberg, the nature of stablecoin transactions often leads to double-counting, depending on the platform users employ for fund transfers. For example, converting $100 of Circle’s USDC stablecoin to PayPal’s PYUSD on the decentralized exchange (DEX) Uniswap would result in $200 of total stablecoin volume being recorded on-chain. Visa, which processed over $12 trillion the previous year, could suffer if stablecoins gain widespread acceptance as payment.  Interestingly, despite this troubling data, analysts at Bernstein predicted that the total value of all stablecoins in circulation could reach $2.8 trillion by 2028, nearly 18 times their current combined circulation. Related Reading: Crypto Analyst Reveals 6 Must-Buy Altcoins With The Most Potential While PayPal and Stripe have made strides in adopting stablecoins, Airwallex has observed limited demand for stablecoin-based payment solutions among its customers, primarily due to concerns about user-friendliness.  Sood emphasized the significant barrier of overcoming entrenched payment methods, citing the continued use of checks for 40% to 60% of business payments in the United States. The Bloomberg report sheds light on the dominance of non-genuine user activity in stablecoin transactions. The study underscores the importance of improving existing payment infrastructure and addressing user-friendly concerns to unlock the long-term potential of stablecoins. Featured image from Shutterstock, chart from TradingView.com

View Details

Non-Empty USDC And USDT Wallets See 13.9% And 15.7% Spike, Why This Is Good For Crypto

Non-empty wallets for stablecoins such as Circles USDC and Tethers USDT have been on the rise for a while now as crypto prices have recovered since the start of the year. This has come to a head as the non-empty wallets have grown double-digits in a very short time. While this could point to recent selling, it is also quite bullish for crypto going by historical performances. Non-Empty USDT And USDC Wallets Jump 13.9% According to the on-chain data tracking platform Santiment, there has been a significant shift in the number of crypto wallets that are holding stablecoins on their balances. This growth is mostly seen in stablecoins such as Tethers USDT and Circles USDC. Related Reading: Shiba Inu Price Cant Reach $0.01, Crypto Pundit Reveals Why As Santiments data shows, the total number of non-empty wallets holding USDC has risen 13.9% so far in 2024. Likewise, USDT wallets have also been on the rise, with a marked 15.7% increase in non-empty wallets in the same time period. The chart shows a steady increase in the number of these non-zero wallets as the price of Bitcoin had recovered, taking the whole crypto market along with it. The total among of USDT holders moved from around 4.5 million at the start of the year to 5.7 million at the time of the report. For USDC, this figure went from around 1.9 million to more than 2.15 million. In total, there are more than 7.85 million stablcoin wallets between the both of them. Concerned about another #crypto market retrace? You may be comforted by the fact that the amount of non-empty #stablecoin wallets are rising. In 2024, the amount of #USDCoin non-empty wallets has grown by +13.9%, and #Tether wallets have grown +15.7%. https://t.co/9K2y8UgOv9 pic.twitter.com/mxdkrgn36M Santiment (@santimentfeed) May 23, 2024 Now, given the recent uptick in the number of non-zero stablecoin wallets, it could suggest there has been some selling. However, stablecoins have seen their market caps increase drastically as more coins have been minted, suggesting that investors are looking to buy rather than sell. Rising Stablecoin Wallets Is Good For Crypto The rise in the non-zero stablecoin wallets are good for crypto, especially in the event of a retrace, as the on-chain tracker points out. This is because investors usually keep their funds in stablecoins waiting for good opportunities to buy, and during market retrace, they tend to deploy stablecoins such as USDT and USDC to buy other assets for low prices. Related Reading: Standard Chartered Analyst Says Bitcoin Is Set For A New ATH Above $73,700, You Wont Believe The Timeline A correlation can be seen between the rising Bitcoin and crypto prices this year and the rising stablecoin market cap. For example, the USDT market cap went from $93 billion to over $111 billion since January, signifying a 20% increase. In the same vein, the USDC market cap went from $25 billion in January to over $33 billion in May, representing a 32% increase for the stablecoin. In the last 24 hours alone, over $160 million was moved from the USDC treasury in two transactions into unknown wallets, suggesting that crypto investors are getting ready to get into the market. Featured image created with Dall.E, chart from Tradingview.com

View Details

Stablecoins Could Solve $7T in Global Fees: Scaramucci

Stablecoins have the potential to cut transaction costs globally and strengthen the U.S. dollars global position, according to Anthony Scaramucci.Scaramucci, founder of SkyBridge Capital, emphasized the strategic role of stablecoins and emerging crypto legislation during a recent appearance on CNBCs Squawk Box. While addressing Bitcoins price movement, he shifted focus toward how stablecoins could reduce global transaction costs and reinforce U.S. dollar dominance. Scaramucci underlined the bipartisan push behind new regulatory frameworks such as the Stable Act and the GENIUS Act.For context, the legislation, supported by industry stakeholders, sets regulatory guidelines for stablecoins, digital tokens typically linked to the U.S. dollar or similar assets.On Monday, the Senate approved the GENIUS Act in a 66-22 vote, moving forward legislation focused on crypto regulation. Despite earlier concerns from some Democrats over former President Donald Trumps involvement in digital assets, 16 ultimately backed the bill.Stablecoins Tied to U.S. Dollar Strength and Treasury DemandScaramucci noted that stablecoins like Circle and Tether are expanding their reserves with U.S. dollar-denominated assets, specifically U.S. Treasuries. He pointed out that Tether holds more U.S. Treasuries than countries like Germany or Japan. According to Scaramucci, this accumulation boosts demand for Treasuries and supports the global position of the U.S. dollar. He added that future legislation would likely expand these reserves further. This development aligns with a growing international financial strategy centered around U.S.-backed assets.Cost Reduction and Future Use Cases of Blockchain PaymentFurther into the conversation, Scaramucci stated that stablecoins could help cut the $7 trillion in global transaction fees, including credit card and wire transfer costs. He envisioned practical use cases, such as paying with stablecoins at venues like New Yorks Hunt and Fish Club to bypass high credit card fees. He supported U.S. efforts to retain crypto innovation domestically, contrasting the current administrations policies with what he described as speculative objections from the previous one.White House Confident in Senate PassageNotably, David Sacks, a senior adviser to U.S. President Donald Trump on both cryptocurrency and artificial intelligence, indicated that the administration anticipates bipartisan support for the stablecoin legislation in the Senate. Speaking to CNBC on May 21 after a crucial vote where 15 Democrats sided with Republicans to overcome the filibuster, Sacks expressed confidence in the bills ultimate passage.

View Details

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.

View Details

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.

View Details

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.

View Details

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.

View Details

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

View Details

Stablecoin Giant Tether Strikes Gold: Achieves Record Net Profit Of $4.5 Billion In Q1

Stablecoin issuer Tether, a prominent player in the cryptocurrency market behind the widely used USDT stablecoin, has released its audit statement for the first quarter of 2024, accompanied by a report conducted by independent accounting firm BDO.  The report, which provides additional financial information beyond the reserves backing Tether’s fiat-denominated stablecoins, shows the company’s profit for the first quarter of the year, which saw an increased influx of capital into the market.  Tether Q1 2024 Financials Soar Digging into the numbers, the first quarter of 2024 proved highly profitable for Tether, with a net profit of $4.52 billion.  The main contributors, the entities responsible for issuing stablecoins and managing reserves, reportedly generated approximately $1 billion of this profit from net operating gains, primarily from US Treasury holdings. The remaining profits were attributable to mark-to-market gains on Bitcoin (BTC) and gold positions. Related Reading: Bitcoin Price Dips Below $57,000: 4 Key Reasons The report also highlighted Tether’s success in increasing its direct and indirect holdings of US Treasuries to over $90 billion. This includes indirect exposure through overnight reverse repurchase agreements collateralized by US Treasuries and investments in US Treasuries through money market funds. In a sign of significant growth, Tether also disclosed its net equity for the first time, revealing a figure of $11.37 billion as of March 31, 2024. This is an increase from the $7.01 billion equity reported as of December 31, 2023.  The report also highlighted a $1 billion increase in excess reserves, which support the company’s stablecoin offerings, bringing the total to nearly $6.3 billion. CEO Emphasizes Transparency And Stability The BDO confirmation reiterated that Tether-issued tokens are 90% backed by cash and cash equivalents, underscoring the company’s stance on maintaining liquidity within the stablecoin ecosystem. Furthermore, the report revealed that over $12.5 billion worth of USDT was issued in the first quarter alone. Tether Group’s strategic investments, which exceed $5 billion as of the report date, span various sectors, including artificial intelligence (AI) and data, renewable energy, person-to-person (P2P) communication, and Bitcoin Mining.  Related Reading: Machine Learning Algorithm Predicts Dogecoin Price For May 2024 In response to the latest report, Paolo Ardoino, CEO of Tether, expressed the company’s commitment to transparency, stability, liquidity, and responsible risk management.  Ardoino highlighted Tether’s record-breaking profit benchmark of $4.52 billion and the company’s efforts to increase transparency and trust within the cryptocurrency industry. Ardoino further claimed: In reporting not just the composition of our reserves, but now the Groups net equity of $11.37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust.  Featured image from Shutterstock, chart from TradingView.com

View Details

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.

View Details

DeFi And Web3 Gaming Dominate Q1: Record Transactions Leave Stablecoins In The Dust, Report

In a recent report published by QuickNode, the first quarter of 2024 showed the dominance of decentralized finance (DeFi) and the notable growth of Web3 gaming in the crypto industry, which outperformed the stablecoin sector in key metrics, indicating investor preference and market sentiment during this period.  Hopes For Second DeFi Summer  Per the report, [...]

The post DeFi And Web3 Gaming Dominate Q1: Record Transactions Leave Stablecoins In The Dust, Report appeared first on Crypto Breaking News.

View Details

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.

View Details

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.

View Details

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

View Details

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.

View Details

BUSD Stablecoin Market Shrinks by 3 Billion in Six Days

The stablecoin industry has been focused on the developments surrounding BUSD.

Continue reading at DailyCoin.

View Details

FSB Says Existing Stablecoins Will Be Left Behind by Global Standards

FSB Chair cautions many existing stablecoins may not meet upcoming high-level regulatory recommendations.

Continue reading at DailyCoin.

View Details

Dogecoin (DOGE) Foundation Member Sounds Alarm Over BUSD Mess

DOGE Foundation's Mr. Cannoli tips off the DOGE Army on how to keep its beloved canine coin safe.

Continue reading at DailyCoin.

View Details

Paxos-BUSD Dispute Triggers Large-Scale Withdrawals from Binance

BUSD increases on CEXes, Paxos experiences burn of over 400 million BUSD coins. The Stablecoin market drops to $15.8 billion.

Continue reading at DailyCoin.

View Details

Circle Warned New York Regulator About BUSD Stablecoin

Circle complained to NYDFS about Binance’s mismanagement of reserves for its BUSD stablecoin before it was asked to stop issuance.

Continue reading at DailyCoin.

View Details