This week, the stablecoin competition revealed two clear fronts: a compliance race between nations and a battle for distribution dominance within the industry. Globally, stablecoins are being integrated into financial infrastructure, with countries like China, the US, Japan, and South Korea accelerating efforts to link their currencies with stablecoins. A Federal Reserve Governor explicitly listed stablecoins, smart contracts, and AI as the three pillars of payment innovation. At the industry level, the competitive focus is shifting from issuance to distribution. Circle faces high channel costs, while the practices of Ripple, Bullish, and MetaMask demonstrate two paths: direct institutional connections and white-label distribution.

Market Landscape: The total stablecoin market capitalization reached $277.87 billion, with a weekly increase of $2.78 billion. USDT dominates with a 60.19% share, while USDC holds 24.28%.

Sino-US Race: China is promoting RMB stablecoins for cross-border settlements, while the US established a compliance path via the GENIUS Act. The Fed is considering stablecoins as a systemic issue.

Distribution Battle: Circle pays over half its revenue to distributors. Ripple's credit partnership with Gemini, Bullish's IPO (>50% settled in stablecoins), and MetaMask's mUSD highlight the critical importance of distribution networks.

Regulatory Progress: The US is building a unified stablecoin regulatory framework. South Korea and Japan are accelerating legislation. Wyoming launched FRNT, the first state-supported multi-chain stablecoin.

Institutional Moves: Traditional banks are actively building custody infrastructure. Goldman Sachs predicts the stablecoin market will reach trillions. Their role in emerging market payments is growing.

Innovative Applications: Visa and Wirex enabled EURC real-time settlement. SoFi plans remittance services via Bitcoin Lightning Network. Stablecoins are evolving from trading tools to everyday payment and credit infrastructure.

Summary

Author: Cobo

This week, the stablecoin competition revealed two clear fronts: a compliance race between nations and a battle for distribution dominance within the industry.

Globally, stablecoins are being integrated into financial infrastructure: China, Japan, and South Korea are accelerating efforts to link their national currencies with stablecoins. US regulation is shifting more directly towards enablement. Fed Governor Waller singled out "stablecoins, smart contracts, and AI" as the three pillars of payment innovation and warned that banks resisting would be marginalized. Simultaneously, another Fed Governor, Bowman, called for reducing barriers posed by "reputational risk" and even suggested central bank personnel personally hold crypto assets for experience, signaling that stablecoins have been incorporated into the US dollar's strategic toolkit.

At the industry level, the focus is shifting from issuance to distribution. Circle faces pressure from channel costs, while the practices of Ripple, Bullish, and MetaMask demonstrate two paths: direct institutional connections and white-label distribution. Distribution networks are becoming the winning筹码 (chips) in the second half of the stablecoin game.

Market Overview & Growth Highlights

The total stablecoin market capitalization reached $277.866 billion, with a weekly increase of $2.771 billion. USDT maintains dominance with a 60.19% share. USDC ranks second with a market cap of $67.456 billion, holding a 24.28% share.

Blockchain Network Distribution

Top 3 networks by stablecoin market cap:

* Ethereum: $144.578 billion

* Tron: $82.416 billion

* BSC: $11.836 billion

Top 3 networks by weekly growth rate:

* Movement: +79.71% (USDA占比 64.46%)

* Ink: +27.52% (USDT占比 92.95%)

* Algorand: +14.28% (USDC占比 96.63%)

Data from DefiLlama

???? Sino-US Race: Stablecoins Become a Strategic Pivot in Global Financial Order

Stablecoins are evolving from a peripheral product of the crypto market to a strategic hub of international finance. Accelerated moves by both China and the US this week clearly reveal this trend. China's State Council is reviewing a new roadmap for RMB internationalization, listing stablecoins as a core lever to compensate for the US lead in this area. Hong Kong has率先 (taken the lead) in implementing regulations, Shanghai is building a digital yuan international operations center, and high-level officials may promote the use of RMB stablecoins for cross-border settlements within the SCO framework. These actions stem from the pressure of the RMB's share in global SWIFT payments dropping to 2.88%, while the dollar's share remains high at 47.19%, and exporters' reliance on dollar stablecoins is rising. In this context, RMB stablecoins are seen as a tool to enhance the competitiveness of cross-border payments. Explorations by other major Asian economies like Japan and South Korea also indicate that stablecoins are gradually being incorporated into regional financial infrastructure design.

The US is also undergoing a profound regulatory transformation. Fed Governors Christopher Waller and Michelle Bowman相继 (successively) expressed their views. Waller stated at the Wyoming Blockchain Stampede that stablecoins, smart contracts, and AI are the three pillars of future payment innovation, emphasizing the strategic value of stablecoins for improving payment efficiency and consolidating the dollar's international standing. He warned that banks resisting new technologies would be marginalized. Bowman further suggested reducing regulatory barriers due to "reputational risk" and even allowing central bank personnel to hold crypto assets for hands-on experience.

This echoes the compliance path established by the GENIUS Act, showing the US is reshaping its institutional advantages through regulatory openness. The July FOMC meeting minutes首次 (for the first time) addressed stablecoins as a systemic issue, acknowledging their value for payments and Treasury demand while also cautioning about their potential to weaken bank liabilities and monetary policy transmission. This aligns highly with the banking industry's anxiety over deposit outflows, indicating stablecoins have risen from an industry lobbying issue to a central bank strategic risk consideration. Moving forward, the Fed will likely acknowledge the efficiency and competitive value of stablecoins while strengthening transparency and risk monitoring to rebuild a new equilibrium between financial innovation and system stability.

Against this backdrop, the scaling prospects of stablecoins will be repriced. Standard Chartered estimates the global stablecoin market cap could grow to $2 trillion by 2028. If RMB stablecoins can enter international clearing networks, they could become a key extension of RMB internationalization. It's foreseeable that China and the US are shaping the future digital currency order through different paths: the US relies on legislation and regulatory friendliness to maintain institutional advantages, while China uses policy drives and regional pilots to push for breakthroughs. The convergence of their strategies预示着 (indicates) that stablecoins will transcend the category of crypto tools and become a core variable reshaping international financial governance and currency flow patterns.

???? The Second Half: The Battle for Distribution

As compliance frameworks gradually land (US GENIUS Act, Hong Kong stablecoin regulations), standardization in the issuance环节 (link) is being completed, and the industry's competitive focus is shifting to "distribution." Distribution is not only the interface between issuers and users but also the most expensive and bargaining-power-heavy环节 (link). Whether relying on exchanges, payment networks, or DeFi incentives, scaled distribution comes at a high channel cost.

Circle is a typical case study. It must rely on channels like Coinbase to reach users. This brings massive circulation volume but at the cost of significant revenue sharing. In Q2 2025, Circle earned approximately $625 million in interest income from USDC reserves, of which over half was paid to Coinbase. As distributors like Binance join, this structural dependency will only intensify, putting continuous pressure on Circle's net income rate.

However, two cases this week demonstrated another possibility. Ripple embedded RLUSD directly into Gemini's working capital, and Bullish completed an $11.5 billion IPO fundraising, with over 50% of the capital raised settled in stablecoins. This type of "top-down" institutional distribution bypasses retail channels, placing stablecoins directly into corporate finance and capital markets. It offers higher distribution efficiency and creates long-term value scenarios—closer to the deep integration of stablecoins into the mainstream financial system than relying solely on payment or trading circulation.

When distribution capability becomes the core of competition, platforms that control users and channels will naturally extend into issuance. MetaMask's launch of mUSD is an example. By partnering with Stripe's Bridge, it outsources issuance, reserve management, and compliance, focusing itself on brand and user reach. Users can not only use mUSD for deposits, exchanges, and cross-chain transactions but also spend it at global merchants via the MetaMask Card. Wallets are升级 (upgrading) from traffic entrances to "branded issuers," while Bridge plays the behind-the-scenes role of a "white-label issuer."

This model could reshape the stablecoin landscape. A few specialized companies with licenses and technology handle issuance and compliance, while more platforms with brand and user relationships achieve "Stablecoin-as-a-Service" (STaaS) through outsourcing. The future market may shift from a monopoly by a few giants to the coexistence of more medium-sized stablecoins. True differentiation will come from distribution networks and brand value, not just the reserve assets themselves.

Market Adoption

???? Gemini and Ripple Form Credit Partnership, Excess Borrowings to be Settled in RLUSD Stablecoin

Key Points

* Crypto exchange Gemini disclosed in its IPO prospectus a $75 million credit facility agreement with Ripple Labs, expandable to $150 million under certain conditions.

* For borrowings exceeding the initial $75 million, Gemini can request funds in Ripple's USD stablecoin, RLUSD, making it a settlement option for a major US trading platform.

* The credit agreement, signed July 10, primarily finances credit card receivables; as of August 15, Gemini had not used the facility.

Why It Matters

This agreement marks a key shift where stablecoins expand from payment mediums to credit infrastructure. By partnering with a major exchange undergoing an IPO, Ripple not only embeds RLUSD into Gemini's core business but also creates a high-frequency, high-value application for its stablecoin, directly challenging USDT and USDC. Post the Trump-signed GENIUS Act, this inter-financial institution strategic cooperation highlights stablecoins' unique advantages as credit tools: immediacy, programmability, and globalization, injecting innovation into traditional finance. Despite Gemini's H1 net loss of $282.5 million, this collaboration underscores stablecoins' role as key infrastructure bridging traditional finance and the crypto ecosystem.

???? Crypto Exchange Bullish Raises $11.5B in IPO, Over 50% Settled in Stablecoins

Key Points

* Crypto exchange Bullish completed its IPO on August 14, with over 50% of the funding settled in stablecoins, raising a total of $11.5 billion.

* The IPO used 8 different stablecoins for settlement, primarily minted on Solana and custodied by Coinbase, enabling multi-currency, multi-region fundraising.

* Traditional investment bank Jefferies acted as the "crypto delivery agent," coordinating stablecoin minting and delivery in collaboration with issuers like Circle and Paxos.

Why It Matters

This signifies stablecoins becoming a key component of capital market infrastructure, directly challenging traditional T+2 settlement. The Bullish IPO integrated high-performance public chains, compliant exchanges, and stablecoin issuers, showcasing the collaborative power of the crypto ecosystem. With acts like the GENIUS Act providing a regulatory foundation, this innovative fundraising model预示着 (foreshadows) a redefinition of traditional financial intermediary roles, potentially accelerating the migration of core capital market functions on-chain.

???? MetaMask Expands Reach, Integrates TRON Blockchain, Accelerates Cross-Chain Strategy

Key Points

* The world's largest self-custody wallet, MetaMask, announced a strategic partnership with TRON DAO, allowing users direct access to the TRON ecosystem.

* This follows integrations with Solana and Sei; the team earlier announced plans to add Bitcoin support in Q3 2025.

* TRON, a major stablecoin payment chain, processes nearly 9 million daily transactions, settling over $22 billion in value, and is the largest blockchain network for USDT volume.

Why It Matters

This marks MetaMask's transition from an Ethereum-native wallet to a true "Web3 gateway," enhancing user experience and market competitiveness by supporting both EVM and non-EVM chains. TRON's widespread adoption in Asia, South America, Africa, and Europe offers MetaMask global user growth opportunities. The partnership will strengthen blockchain ecosystem interoperability and drive practical application落地 (landing). With over 100 million annual active users and considering a native token launch, this integration is a key step in MetaMask's cross-chain strategy, solidifying its leadership in the Web3 wallet market.

???? Velera Launches Digital Asset Lab, Bets on Stablecoins as New Growth for Credit Unions

Key Points

* Credit union service organization Velera launched a Digital Asset Lab to help credit unions seize opportunities in stablecoins and digital assets.

* The lab will focus on developing joint ventures addressing DLT infrastructure, blockchain interoperability, and core banking system integration.

* The first platform partner is digital asset banking network Metallicus; they will explore using versatile blockchain infrastructure to provide secure, compliant solutions for US credit unions.

Why It Matters

Traditional financial institutions are rapidly entering the stablecoin space to avoid being outmaneuvered by startups as in the fintech era. As stablecoins and tokenized assets go mainstream, controlling their custody is like holding the keys to new global currency vaults. By提前布局 (positioning early) in custody, banks and credit unions can establish toll booths on trillions worth of blockchain transactions while influencing the design of new financial infrastructure. This move shows the financial industry's recognition of stablecoin potential is shifting from speculative assets to payment and store-of-value tools, accelerating their integration into traditional finance.

???? Whop Releases PSP Payment Aggregation Platform, Fees Drop to 2.7%, Supports Global Banks and Stablecoin Settlement

Key Points

* Whop announced independence from Stripe, building a payment orchestration system integrating multiple PSPs (e.g., Adyen, Checkout.com) for intelligent transaction routing, increasing authorization rates and lowering fees to 2.7% + $0.30.

* Whop's GMV has reached a $1.2 billion annualized run rate, serving 28,000 creators across 170+ countries, supporting crypto settlements like Bitcoin and stablecoins with minimal KYC.

* Whop completed $80M in Series A & B funding at an $800M valuation, backed by Peter Thiel and Insight Partners, evolving from a digital product marketplace to a full-stack payment infrastructure provider.

Why It Matters

Whop's payment system independence signals the acceleration of payment infrastructure "decoupling." By building a payment orchestration layer, Whop can intelligently choose the optimal payment route based on transaction type, country, and currency, freeing itself from single-supplier reliance. Crypto payment options and simplified KYC provide solutions for underbanked regions to bypass traditional financial intermediaries, significantly lowering the barrier to entry for global merchants in the digital economy.

Regulatory Compliance

????️ US Establishes Unified Stablecoin Regulatory Framework, GENIUS Act Empowers Review Committee to Assess State Rules

Key Points

* The US Stablecoin Certification Review Committee has begun assessing whether state stablecoin frameworks are "substantially similar" to the federal issuance regime. The committee is chaired by the Treasury Secretary and includes the Fed Chair and FDIC Chair.

* Unanimous committee approval is required for state frameworks, a key step under the GENIUS Act to streamline state-level stablecoin regulation.

* Gavin Meyers, Financial Services Regulatory Partner at Pierson Ferdinand LLP, stated the Act有望 (is expected to) reduce current state regulatory chaos.

Why It Matters

The US is establishing nationwide uniform standards by federally reviewing state stablecoin rules. This provides clear compliance paths for issuers, lowers multi-state operational costs, and reduces regulatory arbitrage risk. As the global stablecoin market grows rapidly, this US regulatory coordination mechanism serves as a model for global framework building, further promoting stablecoins' compliant use in payments and cross-border trade.

????️ Tether and Circle Execs to Meet Korean Bank Giants, Strong Stablecoin Momentum

Key Points

* According to Korean media, executives from Circle and Tether will meet CEOs of major Korean banks like Shinhan Financial Group's Kim Ok-dong and Hana Financial Group's Ham Yong-joo.

* Discussions will cover the potential for distributing and using USD stablecoins in Korea and issuing KRW-backed local stablecoins.

* Despite differing political party stances on stablecoin regulation, Korean internet giant Kakao has trademarked a KRW stablecoin, and the Bank of Korea is considering linking deposit tokens to public blockchains.

Why It Matters

This development signals global stablecoin giants are actively expanding in Asia, particularly in Korea, a market historically restrictive towards foreign financial institutions. Korea plans to introduce a stablecoin legal framework in October; cooperation between large financial institutions and stablecoin issuers will accelerate the development of Korea's stablecoin ecosystem. A partnership or joint venture between Circle/Tether and a Korean bank could help them maintain market share against local fintech competitors issuing KRW stablecoins. This trend reflects the globalization of stablecoins as cross-border payment tools and growing acceptance of stablecoin tech by traditional finance.

????️ US Crypto Market Structure Bill Faces Key Vote, Rep. Scott Says Outcome Hangs in Balance

Key Points

* Senate Banking Committee Chairman Tim Scott stated the upcoming crypto market structure bill may receive less Democratic support than the passed GENIUS stablecoin bill, optimistically estimating only 12-18 Democratic votes.

* Scott named Senator Elizabeth Warren as a key obstacle to Democratic support, warning the bill affects not just crypto but could颠覆 (overturn) the entire US financial regulatory system.

* Given current Senate composition, the bill needs at least 7 Democrats joining all 53 Republicans to pass, a challenge even for the House-passed CLARITY Act.

Why It Matters

This market structure bill is more far-reaching than the GENIUS Act, aiming to create legal space for crypto by modifying New Deal-era financial regulations. Warren's strong opposition makes the bill's prospects uncertain, claiming it provides a "highway for traditional securities to flee SEC监管 (regulation)," fundamentally颠覆 (overturning) nearly a century of capital market rules. This legislative battle concerns not only crypto's future but also a fundamental debate on US financial regulation, representing another key front in the Trump administration's push for crypto-friendly policies.

????️ Robinhood Enters Sports Prediction Market, Partners with Kalshi for NFL and NCAA Coverage

Key Points

* Robinhood announced its derivatives unit is partnering with Kalshi to launch US pro and college football prediction markets, allowing users to trade on game outcomes.

* The new service will launch before the 2026 NFL and NCAA seasons, covering all NFL regular-season games and NCAA football games from四大联盟 (Power Four) schools and independents.

* After pausing Super Bowl prediction markets due to CFTC warnings, Robinhood carefully avoided directly naming the NFL or NCAA, emphasizing the service is "not endorsed by any pro or college sports association."

Why It Matters

This marks prediction markets moving from crypto-native realms into mainstream financial services, embodying the "financialization of content" trend. The US sports betting market sees over $120 billion in annual wagers, a significant market for fintech competition. The core legal issue involves regulatory conflict between federal (CFTC) oversight and state gambling laws; platforms like Kalshi holding CFTC licenses claim federal preemption to bypass state restrictions. Although Nevada and New Jersey lost early lawsuits, a recent Maryland victory shows the legal dispute is unresolved. This regulatory arbitrage space will influence the development path of crypto prediction markets.

????️ Global Banking Groups Call for Changes to Basel Crypto Capital Standards

Key Points

* Multiple global financial industry associations co-signed a letter to the Basel Committee on Banking Supervision (BCBS) requesting reconsideration of the crypto asset exposure standard (SCO60) effective January 2026.

* Banks argue the current standard is overly conservative and punitive for crypto assets, not reflecting actual risk, making bank participation economically unviable.

* The industry emphasized its direct participation offers consumer protection and risk management, attaching a report highlighting DLT's "transformative potential" in capital markets.

Why It Matters

As the Trump administration pushes pro-crypto legislation and global banks actively engage in custody, trading, and stablecoin issuance, crypto assets have become an undeniable part of traditional finance. This active lobbying shows banks are no longer passively accepting regulation but actively seeking profitable participation in crypto markets. The BCBS standard, based on 2022 market turmoil, mismatches current industry development. This regulatory struggle will profoundly impact crypto-traditional finance integration, revealing the ongoing博弈 (game) between regulation, risk, and commercial interest.

????️ Wyoming Launches First State-Supported Multi-Chain Stablecoin FRNT

Key Points

* The Wyoming Stable Token Commission officially launched the first official state-supported stablecoin, Frontier Stable Token (FRNT), making Wyoming the first US state to issue a blockchain-based, fiat-pegged token.

* FRNT will launch simultaneously on 7 blockchains: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana, maintaining interoperability via LayerZero.

* The stablecoin is over-collateralized with cash and short-term US Treasuries (min 102% reserves) for stability. Initial purchase available via Kraken (Solana) and Rain's Visa-integrated card platform (Avalanche).

Why It Matters

Wyoming has long been a leader in crypto regulation. Launching this stablecoin紧随 (closely following) Trump's signing of the federal stablecoin law further solidifies the state's leading role in digital financial innovation. With the total supply of USD stablecoins reaching $265 billion, a state-issued, regulation-friendly stablecoin offers more choices for retail and corporate users while attracting more blockchain-related activity to the regional economy. It also provides a template for other states and local governments, potentially triggering broader governmental digital currency experiments.

????️ US Treasury Seeks Public Comment on Digital Asset Anti-Money Laundering Measures

Key Points

* The US Treasury published a notice Monday seeking public input on "innovative methods for detecting illicit activity involving digital assets," implementing requirements from the GENIUS stablecoin Act signed by President Trump last month.

* Treasury requests suggestions on API interfaces, AI, digital identity verification, and blockchain tech for AML applications. The comment period ends October 17.

* Treasury Secretary Scott Bessent stated stablecoins will expand global access to the USD for billions and increase demand for US Treasuries, calling it a "win-win-win for users, issuers, and the US Treasury."

Why It Matters

As the GENIUS Act establishes a federal regulatory framework for stablecoins, regulators are turning to AML compliance challenges. Bank associations worry the Act's restrictions on paying interest on stablecoins could be circumvented by exchanges and brokers, leading to significant deposit outflows into stablecoins. This consultation process will influence future stablecoin rulemaking. Findings submitted to Congress by Treasury could prompt new rounds of regulation, profoundly impacting stablecoin industry compliance requirements and development direction.

????️ Tether Appoints Former White House Crypto Council ED Bo Hines as Strategic Advisor

Key Points

* Tether announced the appointment of Bo Hines, former Executive Director of the Trump administration's White House Crypto Council, as Digital Asset and US Strategy Advisor, effective immediately.

* Hines will lead Tether's US market entry strategy, build relationships with policymakers and industry stakeholders, and strengthen Tether's investment commitment in the US.

* As ED of the White House Crypto Council, Hines led an interagency工作组 (working group) developing a stablecoin regulatory framework and promoting the safe integration of blockchain tech with the US financial system.

Why It Matters

This appointment signals the world's largest stablecoin issuer正式启动 (formally initiating) its US market strategy and reflects the growing prevalence of the "revolving door" between crypto and political elites. Given the Trump administration's pro-innovation stance, recruiting a former White House official could help Tether secure a more favorable US regulatory environment. Tether claims nearly $5 billion invested in the US ecosystem; this hire may预示 (signal) increased US infrastructure布局 (layout), further altering stablecoins' influence in the global payment system.

????️ Fed Announces Termination of Novel Activities Supervision Program, Returns to Routine Oversight

Key Points

* The Federal Reserve had established the "Novel Activities Supervision Program" (NASP) to focus on bank activities in crypto assets, DLT, and complex tech partnerships with non-banks.

* The program covered four areas: tech-driven partnerships with non-banks, crypto asset activities, potentially systemic DLT projects, and providing concentrated banking services to crypto/fintech firms.

* The Fed has now decided to terminate NASP, stating it will continue supervising novel bank activities through routine processes, emphasizing it won't prohibit or hinder banks from providing services based on business type.

Why It Matters

This marks a significant shift in the Fed's approach to crypto/fintech supervision, moving from special treatment back into the mainstream regulatory system, possibly indicating regulators view these activities as maturing. This will simplify compliance burdens for banks exploring crypto/DLT innovation, potentially encouraging more traditional institutions to offer digital asset services, promoting financial innovation and inclusion while maintaining appropriate risk oversight. This policy change may预示 (signal) a US regulatory environment moving towards greater openness while remaining cautious.

????️ CMB International Securities Officially Launches Virtual Asset Trading, Offers Bitcoin, Ethereum

Key Points

* CMB International Securities announced on August 18 the official launch of virtual asset trading services. Its mobile app now features VA trading, offering qualified investors 24/7 trading.

* Qualified investors can directly trade Bitcoin (BTC), Ethereum (ETH), and USDT through their CMB Int'l Sec virtual asset accounts.

* The company is the first China-backed bank-affiliated securities firm in HK licensed for VA trading services and will gradually expand trading scope and functions within the regulatory framework.

Why It Matters

This marks a milestone for China-backed financial institutions formally entering the crypto asset space, reflecting the maturation of Hong Kong's virtual asset regulatory framework. As the first licensed China-backed bank-affiliated broker, CMB Int'l Sec's entry provides institutional investors with more regulated and secure crypto asset trading channels, potentially attracting more traditional financial capital into digital assets and strengthening Hong Kong's position as an Asian crypto financial hub.

????️ South Korean Financial Regulator to Submit Stablecoin Bill in October

Key Points

* According to Korean media MoneyToday, South Korea's Financial Services Commission (FSC) plans to submit a stablecoin bill to the National Assembly in October, incorporating it into the country's second digital asset legal framework.

* The bill will establish norms for stablecoin issuance requirements, collateral management, and internal risk control systems, fulfilling President Lee Jae-myung's promise to build a local currency-pegged stablecoin market.

* Korea's four major banks (KB, Woori, Shinhan, Hana) plan to meet with Circle President Heath Tarbert next week to discuss stablecoin matters.

Why It Matters

This move signals a major Asian economy accelerating its stablecoin regulatory framework, forming a global network with the US, Japan, and others. Korea's push for a local currency stablecoin reflects strategic considerations for digital financial sovereignty, aiming to counter Trump's efforts to strengthen the dollar's global dominance via stablecoins. As Asian market regulations become clearer, they will provide a more defined legal environment for cross-border payments and financial innovation, offering more certainty for institutional investor participation.

????️ Japan Approves First Yen Stablecoin JPYC, Plans $70B Issuance Over Three Years

Key Points

* Japan's Financial Services Agency (FSA) is set to approve fintech firm JPYC's yen stablecoin as early as this fall, allowing sales shortly after registering as a funds transfer service this month.

* JPYC will be fully backed by highly liquid assets like deposits and government bonds, maintaining a 1:1 peg to the yen.

* Plans include issuing 1 trillion yen (approx. $68.1B) over three years, targeting hedge funds, wealth managers, etc., for uses like carry trades, cross-border remittances, and DeFi.

Why It Matters

Japanese law defines stablecoins as "money-denominated assets," distinguishing them from traditional cryptocurrencies (like Bitcoin) and providing a clear legal basis for regulation and issuance. With Citi predicting the stablecoin market will grow to $3.7T by 2030, the launch of a yen stablecoin sets a样板 (model) for non-USD currencies like JPYC entering the global stablecoin market, potentially reshaping cross-border payment landscapes.

????️ Crypto Giants Coinbase, DCG, Others Form "American Innovation Project" Educational Non-Profit

Key Points

* Crypto industry giants Coinbase, DCG, Kraken, Paradigm, and others have jointly formed the "American Innovation Project" (AIP), operating as a 501(c)(3) non-profit享受 (enjoying) tax-exempt status.

* AIP is led by DCG SVP of Policy Julie Stitzel and will engage directly with Congress members and staff to provide education on crypto and decentralized tech, but by law cannot have "influencing legislation as a primary part of its activities."

* Board members include influential industry policy figures like Kristin Smith (Solana Foundation), Allie Page (Blockchain Association), and Nick Carr (Coinbase).

Why It Matters

This reflects a strategic shift towards more diversified methods of influencing policy within the crypto industry. By choosing a 501(c)(3) non-profit model over traditional lobbying organizations, these companies maintain political influence while avoiding certain legal restrictions and tax burdens. The organization's formation coincides with an increasingly complex crypto regulatory environment, showing industry leaders seek to balance education and lobbying to create favorable conditions for shaping future regulations.

This week, the stablecoin competition revealed two clear fronts: a compliance race between nations and a battle for distribution dominance within the industry. Globally, stablecoins are being integrated into financial infrastructure, with countries like China, the US, Japan, and South Korea accelerating efforts to link their currencies with stablecoins. A Federal Reserve Governor explicitly listed stablecoins, smart contracts, and AI as the three pillars of payment innovation. At the industry level, the competitive focus is shifting from issuance to distribution. Circle faces high channel costs, while the practices of Ripple, Bullish, and MetaMask demonstrate two paths: direct institutional connections and white-label distribution.

Market Landscape: The total stablecoin market capitalization reached $277.87 billion, with a weekly increase of $2.78 billion. USDT dominates with a 60.19% share, while USDC holds 24.28%.

Sino-US Race: China is promoting RMB stablecoins for cross-border settlements, while the US established a compliance path via the GENIUS Act. The Fed is considering stablecoins as a systemic issue.

Distribution Battle: Circle pays over half its revenue to distributors. Ripple's credit partnership with Gemini, Bullish's IPO (>50% settled in stablecoins), and MetaMask's mUSD highlight the critical importance of distribution networks.

Regulatory Progress: The US is building a unified stablecoin regulatory framework. South Korea and Japan are accelerating legislation. Wyoming launched FRNT, the first state-supported multi-chain stablecoin.

Institutional Moves: Traditional banks are actively building custody infrastructure. Goldman Sachs predicts the stablecoin market will reach trillions. Their role in emerging market payments is growing.

Innovative Applications: Visa and Wirex enabled EURC real-time settlement. SoFi plans remittance services via Bitcoin Lightning Network. Stablecoins are evolving from trading tools to everyday payment and credit infrastructure.

Summary

Author: Cobo

This week, the stablecoin competition revealed two clear fronts: a compliance race between nations and a battle for distribution dominance within the industry.

Globally, stablecoins are being integrated into financial infrastructure: China, Japan, and South Korea are accelerating efforts to link their national currencies with stablecoins. US regulation is shifting more directly towards enablement. Fed Governor Waller singled out "stablecoins, smart contracts, and AI" as the three pillars of payment innovation and warned that banks resisting would be marginalized. Simultaneously, another Fed Governor, Bowman, called for reducing barriers posed by "reputational risk" and even suggested central bank personnel personally hold crypto assets for experience, signaling that stablecoins have been incorporated into the US dollar's strategic toolkit.

At the industry level, the focus is shifting from issuance to distribution. Circle faces pressure from channel costs, while the practices of Ripple, Bullish, and MetaMask demonstrate two paths: direct institutional connections and white-label distribution. Distribution networks are becoming the winning筹码 (chips) in the second half of the stablecoin game.

Market Overview & Growth Highlights

The total stablecoin market capitalization reached $277.866 billion, with a weekly increase of $2.771 billion. USDT maintains dominance with a 60.19% share. USDC ranks second with a market cap of $67.456 billion, holding a 24.28% share.

Blockchain Network Distribution

Top 3 networks by stablecoin market cap:

* Ethereum: $144.578 billion

* Tron: $82.416 billion

* BSC: $11.836 billion

Top 3 networks by weekly growth rate:

* Movement: +79.71% (USDA占比 64.46%)

* Ink: +27.52% (USDT占比 92.95%)

* Algorand: +14.28% (USDC占比 96.63%)

Data from DefiLlama

???? Sino-US Race: Stablecoins Become a Strategic Pivot in Global Financial Order

Stablecoins are evolving from a peripheral product of the crypto market to a strategic hub of international finance. Accelerated moves by both China and the US this week clearly reveal this trend. China's State Council is reviewing a new roadmap for RMB internationalization, listing stablecoins as a core lever to compensate for the US lead in this area. Hong Kong has率先 (taken the lead) in implementing regulations, Shanghai is building a digital yuan international operations center, and high-level officials may promote the use of RMB stablecoins for cross-border settlements within the SCO framework. These actions stem from the pressure of the RMB's share in global SWIFT payments dropping to 2.88%, while the dollar's share remains high at 47.19%, and exporters' reliance on dollar stablecoins is rising. In this context, RMB stablecoins are seen as a tool to enhance the competitiveness of cross-border payments. Explorations by other major Asian economies like Japan and South Korea also indicate that stablecoins are gradually being incorporated into regional financial infrastructure design.

The US is also undergoing a profound regulatory transformation. Fed Governors Christopher Waller and Michelle Bowman相继 (successively) expressed their views. Waller stated at the Wyoming Blockchain Stampede that stablecoins, smart contracts, and AI are the three pillars of future payment innovation, emphasizing the strategic value of stablecoins for improving payment efficiency and consolidating the dollar's international standing. He warned that banks resisting new technologies would be marginalized. Bowman further suggested reducing regulatory barriers due to "reputational risk" and even allowing central bank personnel to hold crypto assets for hands-on experience.

This echoes the compliance path established by the GENIUS Act, showing the US is reshaping its institutional advantages through regulatory openness. The July FOMC meeting minutes首次 (for the first time) addressed stablecoins as a systemic issue, acknowledging their value for payments and Treasury demand while also cautioning about their potential to weaken bank liabilities and monetary policy transmission. This aligns highly with the banking industry's anxiety over deposit outflows, indicating stablecoins have risen from an industry lobbying issue to a central bank strategic risk consideration. Moving forward, the Fed will likely acknowledge the efficiency and competitive value of stablecoins while strengthening transparency and risk monitoring to rebuild a new equilibrium between financial innovation and system stability.

Against this backdrop, the scaling prospects of stablecoins will be repriced. Standard Chartered estimates the global stablecoin market cap could grow to $2 trillion by 2028. If RMB stablecoins can enter international clearing networks, they could become a key extension of RMB internationalization. It's foreseeable that China and the US are shaping the future digital currency order through different paths: the US relies on legislation and regulatory friendliness to maintain institutional advantages, while China uses policy drives and regional pilots to push for breakthroughs. The convergence of their strategies预示着 (indicates) that stablecoins will transcend the category of crypto tools and become a core variable reshaping international financial governance and currency flow patterns.

???? The Second Half: The Battle for Distribution

As compliance frameworks gradually land (US GENIUS Act, Hong Kong stablecoin regulations), standardization in the issuance环节 (link) is being completed, and the industry's competitive focus is shifting to "distribution." Distribution is not only the interface between issuers and users but also the most expensive and bargaining-power-heavy环节 (link). Whether relying on exchanges, payment networks, or DeFi incentives, scaled distribution comes at a high channel cost.

Circle is a typical case study. It must rely on channels like Coinbase to reach users. This brings massive circulation volume but at the cost of significant revenue sharing. In Q2 2025, Circle earned approximately $625 million in interest income from USDC reserves, of which over half was paid to Coinbase. As distributors like Binance join, this structural dependency will only intensify, putting continuous pressure on Circle's net income rate.

However, two cases this week demonstrated another possibility. Ripple embedded RLUSD directly into Gemini's working capital, and Bullish completed an $11.5 billion IPO fundraising, with over 50% of the capital raised settled in stablecoins. This type of "top-down" institutional distribution bypasses retail channels, placing stablecoins directly into corporate finance and capital markets. It offers higher distribution efficiency and creates long-term value scenarios—closer to the deep integration of stablecoins into the mainstream financial system than relying solely on payment or trading circulation.

When distribution capability becomes the core of competition, platforms that control users and channels will naturally extend into issuance. MetaMask's launch of mUSD is an example. By partnering with Stripe's Bridge, it outsources issuance, reserve management, and compliance, focusing itself on brand and user reach. Users can not only use mUSD for deposits, exchanges, and cross-chain transactions but also spend it at global merchants via the MetaMask Card. Wallets are升级 (upgrading) from traffic entrances to "branded issuers," while Bridge plays the behind-the-scenes role of a "white-label issuer."

This model could reshape the stablecoin landscape. A few specialized companies with licenses and technology handle issuance and compliance, while more platforms with brand and user relationships achieve "Stablecoin-as-a-Service" (STaaS) through outsourcing. The future market may shift from a monopoly by a few giants to the coexistence of more medium-sized stablecoins. True differentiation will come from distribution networks and brand value, not just the reserve assets themselves.

Market Adoption

???? Gemini and Ripple Form Credit Partnership, Excess Borrowings to be Settled in RLUSD Stablecoin

Key Points

* Crypto exchange Gemini disclosed in its IPO prospectus a $75 million credit facility agreement with Ripple Labs, expandable to $150 million under certain conditions.

* For borrowings exceeding the initial $75 million, Gemini can request funds in Ripple's USD stablecoin, RLUSD, making it a settlement option for a major US trading platform.

* The credit agreement, signed July 10, primarily finances credit card receivables; as of August 15, Gemini had not used the facility.

Why It Matters

This agreement marks a key shift where stablecoins expand from payment mediums to credit infrastructure. By partnering with a major exchange undergoing an IPO, Ripple not only embeds RLUSD into Gemini's core business but also creates a high-frequency, high-value application for its stablecoin, directly challenging USDT and USDC. Post the Trump-signed GENIUS Act, this inter-financial institution strategic cooperation highlights stablecoins' unique advantages as credit tools: immediacy, programmability, and globalization, injecting innovation into traditional finance. Despite Gemini's H1 net loss of $282.5 million, this collaboration underscores stablecoins' role as key infrastructure bridging traditional finance and the crypto ecosystem.

???? Crypto Exchange Bullish Raises $11.5B in IPO, Over 50% Settled in Stablecoins

Key Points

* Crypto exchange Bullish completed its IPO on August 14, with over 50% of the funding settled in stablecoins, raising a total of $11.5 billion.

* The IPO used 8 different stablecoins for settlement, primarily minted on Solana and custodied by Coinbase, enabling multi-currency, multi-region fundraising.

* Traditional investment bank Jefferies acted as the "crypto delivery agent," coordinating stablecoin minting and delivery in collaboration with issuers like Circle and Paxos.

Why It Matters

This signifies stablecoins becoming a key component of capital market infrastructure, directly challenging traditional T+2 settlement. The Bullish IPO integrated high-performance public chains, compliant exchanges, and stablecoin issuers, showcasing the collaborative power of the crypto ecosystem. With acts like the GENIUS Act providing a regulatory foundation, this innovative fundraising model预示着 (foreshadows) a redefinition of traditional financial intermediary roles, potentially accelerating the migration of core capital market functions on-chain.

???? MetaMask Expands Reach, Integrates TRON Blockchain, Accelerates Cross-Chain Strategy

Key Points

* The world's largest self-custody wallet, MetaMask, announced a strategic partnership with TRON DAO, allowing users direct access to the TRON ecosystem.

* This follows integrations with Solana and Sei; the team earlier announced plans to add Bitcoin support in Q3 2025.

* TRON, a major stablecoin payment chain, processes nearly 9 million daily transactions, settling over $22 billion in value, and is the largest blockchain network for USDT volume.

Why It Matters

This marks MetaMask's transition from an Ethereum-native wallet to a true "Web3 gateway," enhancing user experience and market competitiveness by supporting both EVM and non-EVM chains. TRON's widespread adoption in Asia, South America, Africa, and Europe offers MetaMask global user growth opportunities. The partnership will strengthen blockchain ecosystem interoperability and drive practical application落地 (landing). With over 100 million annual active users and considering a native token launch, this integration is a key step in MetaMask's cross-chain strategy, solidifying its leadership in the Web3 wallet market.

???? Velera Launches Digital Asset Lab, Bets on Stablecoins as New Growth for Credit Unions

Key Points

* Credit union service organization Velera launched a Digital Asset Lab to help credit unions seize opportunities in stablecoins and digital assets.

* The lab will focus on developing joint ventures addressing DLT infrastructure, blockchain interoperability, and core banking system integration.

* The first platform partner is digital asset banking network Metallicus; they will explore using versatile blockchain infrastructure to provide secure, compliant solutions for US credit unions.

Why It Matters

Traditional financial institutions are rapidly entering the stablecoin space to avoid being outmaneuvered by startups as in the fintech era. As stablecoins and tokenized assets go mainstream, controlling their custody is like holding the keys to new global currency vaults. By提前布局 (positioning early) in custody, banks and credit unions can establish toll booths on trillions worth of blockchain transactions while influencing the design of new financial infrastructure. This move shows the financial industry's recognition of stablecoin potential is shifting from speculative assets to payment and store-of-value tools, accelerating their integration into traditional finance.

???? Whop Releases PSP Payment Aggregation Platform, Fees Drop to 2.7%, Supports Global Banks and Stablecoin Settlement

Key Points

* Whop announced independence from Stripe, building a payment orchestration system integrating multiple PSPs (e.g., Adyen, Checkout.com) for intelligent transaction routing, increasing authorization rates and lowering fees to 2.7% + $0.30.

* Whop's GMV has reached a $1.2 billion annualized run rate, serving 28,000 creators across 170+ countries, supporting crypto settlements like Bitcoin and stablecoins with minimal KYC.

* Whop completed $80M in Series A & B funding at an $800M valuation, backed by Peter Thiel and Insight Partners, evolving from a digital product marketplace to a full-stack payment infrastructure provider.

Why It Matters

Whop's payment system independence signals the acceleration of payment infrastructure "decoupling." By building a payment orchestration layer, Whop can intelligently choose the optimal payment route based on transaction type, country, and currency, freeing itself from single-supplier reliance. Crypto payment options and simplified KYC provide solutions for underbanked regions to bypass traditional financial intermediaries, significantly lowering the barrier to entry for global merchants in the digital economy.

Regulatory Compliance

????️ US Establishes Unified Stablecoin Regulatory Framework, GENIUS Act Empowers Review Committee to Assess State Rules

Key Points

* The US Stablecoin Certification Review Committee has begun assessing whether state stablecoin frameworks are "substantially similar" to the federal issuance regime. The committee is chaired by the Treasury Secretary and includes the Fed Chair and FDIC Chair.

* Unanimous committee approval is required for state frameworks, a key step under the GENIUS Act to streamline state-level stablecoin regulation.

* Gavin Meyers, Financial Services Regulatory Partner at Pierson Ferdinand LLP, stated the Act有望 (is expected to) reduce current state regulatory chaos.

Why It Matters

The US is establishing nationwide uniform standards by federally reviewing state stablecoin rules. This provides clear compliance paths for issuers, lowers multi-state operational costs, and reduces regulatory arbitrage risk. As the global stablecoin market grows rapidly, this US regulatory coordination mechanism serves as a model for global framework building, further promoting stablecoins' compliant use in payments and cross-border trade.

????️ Tether and Circle Execs to Meet Korean Bank Giants, Strong Stablecoin Momentum

Key Points

* According to Korean media, executives from Circle and Tether will meet CEOs of major Korean banks like Shinhan Financial Group's Kim Ok-dong and Hana Financial Group's Ham Yong-joo.

* Discussions will cover the potential for distributing and using USD stablecoins in Korea and issuing KRW-backed local stablecoins.

* Despite differing political party stances on stablecoin regulation, Korean internet giant Kakao has trademarked a KRW stablecoin, and the Bank of Korea is considering linking deposit tokens to public blockchains.

Why It Matters

This development signals global stablecoin giants are actively expanding in Asia, particularly in Korea, a market historically restrictive towards foreign financial institutions. Korea plans to introduce a stablecoin legal framework in October; cooperation between large financial institutions and stablecoin issuers will accelerate the development of Korea's stablecoin ecosystem. A partnership or joint venture between Circle/Tether and a Korean bank could help them maintain market share against local fintech competitors issuing KRW stablecoins. This trend reflects the globalization of stablecoins as cross-border payment tools and growing acceptance of stablecoin tech by traditional finance.

????️ US Crypto Market Structure Bill Faces Key Vote, Rep. Scott Says Outcome Hangs in Balance

Key Points

* Senate Banking Committee Chairman Tim Scott stated the upcoming crypto market structure bill may receive less Democratic support than the passed GENIUS stablecoin bill, optimistically estimating only 12-18 Democratic votes.

* Scott named Senator Elizabeth Warren as a key obstacle to Democratic support, warning the bill affects not just crypto but could颠覆 (overturn) the entire US financial regulatory system.

* Given current Senate composition, the bill needs at least 7 Democrats joining all 53 Republicans to pass, a challenge even for the House-passed CLARITY Act.

Why It Matters

This market structure bill is more far-reaching than the GENIUS Act, aiming to create legal space for crypto by modifying New Deal-era financial regulations. Warren's strong opposition makes the bill's prospects uncertain, claiming it provides a "highway for traditional securities to flee SEC监管 (regulation)," fundamentally颠覆 (overturning) nearly a century of capital market rules. This legislative battle concerns not only crypto's future but also a fundamental debate on US financial regulation, representing another key front in the Trump administration's push for crypto-friendly policies.

????️ Robinhood Enters Sports Prediction Market, Partners with Kalshi for NFL and NCAA Coverage

Key Points

* Robinhood announced its derivatives unit is partnering with Kalshi to launch US pro and college football prediction markets, allowing users to trade on game outcomes.

* The new service will launch before the 2026 NFL and NCAA seasons, covering all NFL regular-season games and NCAA football games from四大联盟 (Power Four) schools and independents.

* After pausing Super Bowl prediction markets due to CFTC warnings, Robinhood carefully avoided directly naming the NFL or NCAA, emphasizing the service is "not endorsed by any pro or college sports association."

Why It Matters

This marks prediction markets moving from crypto-native realms into mainstream financial services, embodying the "financialization of content" trend. The US sports betting market sees over $120 billion in annual wagers, a significant market for fintech competition. The core legal issue involves regulatory conflict between federal (CFTC) oversight and state gambling laws; platforms like Kalshi holding CFTC licenses claim federal preemption to bypass state restrictions. Although Nevada and New Jersey lost early lawsuits, a recent Maryland victory shows the legal dispute is unresolved. This regulatory arbitrage space will influence the development path of crypto prediction markets.

????️ Global Banking Groups Call for Changes to Basel Crypto Capital Standards

Key Points

* Multiple global financial industry associations co-signed a letter to the Basel Committee on Banking Supervision (BCBS) requesting reconsideration of the crypto asset exposure standard (SCO60) effective January 2026.

* Banks argue the current standard is overly conservative and punitive for crypto assets, not reflecting actual risk, making bank participation economically unviable.

* The industry emphasized its direct participation offers consumer protection and risk management, attaching a report highlighting DLT's "transformative potential" in capital markets.

Why It Matters

As the Trump administration pushes pro-crypto legislation and global banks actively engage in custody, trading, and stablecoin issuance, crypto assets have become an undeniable part of traditional finance. This active lobbying shows banks are no longer passively accepting regulation but actively seeking profitable participation in crypto markets. The BCBS standard, based on 2022 market turmoil, mismatches current industry development. This regulatory struggle will profoundly impact crypto-traditional finance integration, revealing the ongoing博弈 (game) between regulation, risk, and commercial interest.

????️ Wyoming Launches First State-Supported Multi-Chain Stablecoin FRNT

Key Points

* The Wyoming Stable Token Commission officially launched the first official state-supported stablecoin, Frontier Stable Token (FRNT), making Wyoming the first US state to issue a blockchain-based, fiat-pegged token.

* FRNT will launch simultaneously on 7 blockchains: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana, maintaining interoperability via LayerZero.

* The stablecoin is over-collateralized with cash and short-term US Treasuries (min 102% reserves) for stability. Initial purchase available via Kraken (Solana) and Rain's Visa-integrated card platform (Avalanche).

Why It Matters

Wyoming has long been a leader in crypto regulation. Launching this stablecoin紧随 (closely following) Trump's signing of the federal stablecoin law further solidifies the state's leading role in digital financial innovation. With the total supply of USD stablecoins reaching $265 billion, a state-issued, regulation-friendly stablecoin offers more choices for retail and corporate users while attracting more blockchain-related activity to the regional economy. It also provides a template for other states and local governments, potentially triggering broader governmental digital currency experiments.

????️ US Treasury Seeks Public Comment on Digital Asset Anti-Money Laundering Measures

Key Points

* The US Treasury published a notice Monday seeking public input on "innovative methods for detecting illicit activity involving digital assets," implementing requirements from the GENIUS stablecoin Act signed by President Trump last month.

* Treasury requests suggestions on API interfaces, AI, digital identity verification, and blockchain tech for AML applications. The comment period ends October 17.

* Treasury Secretary Scott Bessent stated stablecoins will expand global access to the USD for billions and increase demand for US Treasuries, calling it a "win-win-win for users, issuers, and the US Treasury."

Why It Matters

As the GENIUS Act establishes a federal regulatory framework for stablecoins, regulators are turning to AML compliance challenges. Bank associations worry the Act's restrictions on paying interest on stablecoins could be circumvented by exchanges and brokers, leading to significant deposit outflows into stablecoins. This consultation process will influence future stablecoin rulemaking. Findings submitted to Congress by Treasury could prompt new rounds of regulation, profoundly impacting stablecoin industry compliance requirements and development direction.

????️ Tether Appoints Former White House Crypto Council ED Bo Hines as Strategic Advisor

Key Points

* Tether announced the appointment of Bo Hines, former Executive Director of the Trump administration's White House Crypto Council, as Digital Asset and US Strategy Advisor, effective immediately.

* Hines will lead Tether's US market entry strategy, build relationships with policymakers and industry stakeholders, and strengthen Tether's investment commitment in the US.

* As ED of the White House Crypto Council, Hines led an interagency工作组 (working group) developing a stablecoin regulatory framework and promoting the safe integration of blockchain tech with the US financial system.

Why It Matters

This appointment signals the world's largest stablecoin issuer正式启动 (formally initiating) its US market strategy and reflects the growing prevalence of the "revolving door" between crypto and political elites. Given the Trump administration's pro-innovation stance, recruiting a former White House official could help Tether secure a more favorable US regulatory environment. Tether claims nearly $5 billion invested in the US ecosystem; this hire may预示 (signal) increased US infrastructure布局 (layout), further altering stablecoins' influence in the global payment system.

????️ Fed Announces Termination of Novel Activities Supervision Program, Returns to Routine Oversight

Key Points

* The Federal Reserve had established the "Novel Activities Supervision Program" (NASP) to focus on bank activities in crypto assets, DLT, and complex tech partnerships with non-banks.

* The program covered four areas: tech-driven partnerships with non-banks, crypto asset activities, potentially systemic DLT projects, and providing concentrated banking services to crypto/fintech firms.

* The Fed has now decided to terminate NASP, stating it will continue supervising novel bank activities through routine processes, emphasizing it won't prohibit or hinder banks from providing services based on business type.

Why It Matters

This marks a significant shift in the Fed's approach to crypto/fintech supervision, moving from special treatment back into the mainstream regulatory system, possibly indicating regulators view these activities as maturing. This will simplify compliance burdens for banks exploring crypto/DLT innovation, potentially encouraging more traditional institutions to offer digital asset services, promoting financial innovation and inclusion while maintaining appropriate risk oversight. This policy change may预示 (signal) a US regulatory environment moving towards greater openness while remaining cautious.

????️ CMB International Securities Officially Launches Virtual Asset Trading, Offers Bitcoin, Ethereum

Key Points

* CMB International Securities announced on August 18 the official launch of virtual asset trading services. Its mobile app now features VA trading, offering qualified investors 24/7 trading.

* Qualified investors can directly trade Bitcoin (BTC), Ethereum (ETH), and USDT through their CMB Int'l Sec virtual asset accounts.

* The company is the first China-backed bank-affiliated securities firm in HK licensed for VA trading services and will gradually expand trading scope and functions within the regulatory framework.

Why It Matters

This marks a milestone for China-backed financial institutions formally entering the crypto asset space, reflecting the maturation of Hong Kong's virtual asset regulatory framework. As the first licensed China-backed bank-affiliated broker, CMB Int'l Sec's entry provides institutional investors with more regulated and secure crypto asset trading channels, potentially attracting more traditional financial capital into digital assets and strengthening Hong Kong's position as an Asian crypto financial hub.

????️ South Korean Financial Regulator to Submit Stablecoin Bill in October

Key Points

* According to Korean media MoneyToday, South Korea's Financial Services Commission (FSC) plans to submit a stablecoin bill to the National Assembly in October, incorporating it into the country's second digital asset legal framework.

* The bill will establish norms for stablecoin issuance requirements, collateral management, and internal risk control systems, fulfilling President Lee Jae-myung's promise to build a local currency-pegged stablecoin market.

* Korea's four major banks (KB, Woori, Shinhan, Hana) plan to meet with Circle President Heath Tarbert next week to discuss stablecoin matters.

Why It Matters

This move signals a major Asian economy accelerating its stablecoin regulatory framework, forming a global network with the US, Japan, and others. Korea's push for a local currency stablecoin reflects strategic considerations for digital financial sovereignty, aiming to counter Trump's efforts to strengthen the dollar's global dominance via stablecoins. As Asian market regulations become clearer, they will provide a more defined legal environment for cross-border payments and financial innovation, offering more certainty for institutional investor participation.

????️ Japan Approves First Yen Stablecoin JPYC, Plans $70B Issuance Over Three Years

Key Points

* Japan's Financial Services Agency (FSA) is set to approve fintech firm JPYC's yen stablecoin as early as this fall, allowing sales shortly after registering as a funds transfer service this month.

* JPYC will be fully backed by highly liquid assets like deposits and government bonds, maintaining a 1:1 peg to the yen.

* Plans include issuing 1 trillion yen (approx. $68.1B) over three years, targeting hedge funds, wealth managers, etc., for uses like carry trades, cross-border remittances, and DeFi.

Why It Matters

Japanese law defines stablecoins as "money-denominated assets," distinguishing them from traditional cryptocurrencies (like Bitcoin) and providing a clear legal basis for regulation and issuance. With Citi predicting the stablecoin market will grow to $3.7T by 2030, the launch of a yen stablecoin sets a样板 (model) for non-USD currencies like JPYC entering the global stablecoin market, potentially reshaping cross-border payment landscapes.

????️ Crypto Giants Coinbase, DCG, Others Form "American Innovation Project" Educational Non-Profit

Key Points

* Crypto industry giants Coinbase, DCG, Kraken, Paradigm, and others have jointly formed the "American Innovation Project" (AIP), operating as a 501(c)(3) non-profit享受 (enjoying) tax-exempt status.

* AIP is led by DCG SVP of Policy Julie Stitzel and will engage directly with Congress members and staff to provide education on crypto and decentralized tech, but by law cannot have "influencing legislation as a primary part of its activities."

* Board members include influential industry policy figures like Kristin Smith (Solana Foundation), Allie Page (Blockchain Association), and Nick Carr (Coinbase).

Why It Matters

This reflects a strategic shift towards more diversified methods of influencing policy within the crypto industry. By choosing a 501(c)(3) non-profit model over traditional lobbying organizations, these companies maintain political influence while avoiding certain legal restrictions and tax burdens. The organization's formation coincides with an increasingly complex crypto regulatory environment, showing industry leaders seek to balance education and lobbying to create favorable conditions for shaping future regulations.