Editor - Jackie

🚀 Introducing AllScale Invoice: the first feature in our Stablecoin OS.

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💸 Plus: complete quick tasks HERE for a chance to win 50 USDT…(expect even MORE quests in the future)!!

🔗 Start invoicing today → http://dashboard.allscale.io

🌍 Macro: Ethereum stables hit $166B while USDC cements lead, Asia builds token corridor

Liquidity tsunami: A record-breaking $166B stables now parked on Ethereum

• Stablecoin supply on Ethereum hit an all-time high of $166 billion, up from $149.5 billion a month earlier.
• USDT leads with $87.8 billion in supply, followed by USDC at $48 billion.
• Analysts said the milestone reflects dollarization in DeFi, deep liquidity to absorb volatility, and growing institutional trust.

“Incentives alone won’t flip it”: Bernstein throws shade at Tether’s USAT

• Bernstein noted that liquidity is entrenched, and incentives alone will not dislodge existing stablecoins.
• USDC added over $9 billion in supply on Ethereum in August, more than all other stablecoins combined.
• USDC’s market share rose to 58% in August from 55% in July.

Hong Kong and Singapore build regulated token corridor

• Hong Kong’s fiat stablecoin licensing began August 1, 2025, with first approvals expected in 2026. Singapore has had a framework since 2023.
• Together they are building a regulated corridor to move value between hubs 24/7 with policy clarity.
• Regulated 1:1 fiat-backed stablecoins are set to become the digital cash instrument for payments and treasury functions.

Bernstein SocGen sees little threat to Circle despite competition - Bernstein SocGen reiterated an “Outperform” rating on Circle with a $230 target.

JPMorgan warns Circle faces ‘intense’ competition - Analysts said Tether’s USAT, Hyperliquid’s USDH, and fintech stablecoins will pressure Circle. The $278 billion stablecoin market remains under 8% of crypto’s total cap, with competition seen as a zero-sum game.

EY-Parthenon: stablecoins poised to transform payments - Currently, 13% of institutions use stablecoins, with over half of non-users expecting adoption in 6–12 months. By 2030, stablecoins could power 5–10% of cross-border payments, worth $2.1–$4.2 trillion.

DWF Ventures highlights stablecoin growth toward $300B - Stablecoin market cap is approaching $300 billion, up 120% since January 2024. Yield leaders include USDf (8.98%), USDe (7.39%), and GHO (7.84%).

Investors rush to swap $323m in Maker tokens - Nearly 82% of MKR tokens have converted to SKY, ahead of a 1% penalty starting September 18.

Avalanche and Hyperliquid lead rally after Fed rate cut - Crypto markets rose broadly after the Fed’s quarter-point rate cut, with investors focusing on the policy signal.

🔍 Policies: UK caps spark Coinbase backlash, Canada warns “move or get run over,” Australia eases license

Bank of England stablecoin caps face backlash

• The BoE proposed ownership caps of £10,000–£20,000 ($13,600–$27,200) for individuals and £10 million ($13.6m) for businesses on systemic stablecoins.
• Officials argued limits would prevent deposit outflows that might threaten bank lending and financial stability.
• Coinbase warned the proposal was harmful, noting MiCA imposes no caps and instead emphasizes reserves, governance, and oversight.

UK and US move toward aligned crypto regulation - The UK is set to expand cooperation with the US on crypto regulation, focusing on conduct, AML standards, and stablecoin oversight.

Coinbase pushes back on deposit flight warnings - Coinbase’s Faryar Shirzad said claims that stablecoins threaten bank deposits are unfounded. He noted there is no meaningful link between stablecoin adoption and community bank deposit flight.

Bank of Canada calls for stablecoin regulation - Senior deputy Ron Morrow warned delay risks, saying “you’ll get run over if you just sit there.” The shift moves Canada from CBDC exploration to regulating private-sector stablecoins.

Australia exempts stablecoin intermediaries from licenses - ASIC will exempt intermediaries distributing stablecoins issued by already-licensed firms. This means distributors will not need their own financial services license.

Bank of Italy calls for stablecoin rules clarity - Deputy Governor Chiara Scotti urged clearer laws for multi-issuance stablecoins at the EU level.

🔥 Biz Beats: New U.S. stablecoin, Maple’s $4B boom, and MoonPay’s big M&A move

M&A mode: MoonPay buys Meso, boosting payments consolidation

• MoonPay has acquired Meso to accelerate its transformation into a regulated global payments provider.
• The company aims to unify banks, card networks, stablecoins, and blockchains under one compliance framework.
• It already serves 30 million customers and 500 partners, following prior buys of Helio and Iron.

Meet USAT! Tether’s U.S.-compliant stablecoin

• Tether announced USAT, a fully compliant dollar stablecoin for the U.S. market, launching September 12.
• USDT will continue as the offshore token, while USAT will serve onshore enterprises and institutions.
• USAT will be 100% backed by cash and Treasuries, custodied by Cantor Fitzgerald, and run on Tether’s Hadron platform.

Maple Finance reaches $4b AUM, led by syrupUSD

• Maple’s AUM hit nearly $4 billion, driven by demand for its yield-bearing stablecoin syrupUSD.
• The stablecoin surpassed $1 billion in value, including $200 million in Plasma deposits within 24 hours of launch.
• CEO Sid Powell stressed the yields come from real-world credit demand, not leverage or circular activity.

Stripe crypto lead moves to Polygon amid Tempo build-up - John Egan, Stripe’s former crypto head, has joined Polygon as its first chief product officer. He will focus on expanding Polygon’s role as a stablecoin payments blockchain, supporting Tempo, a chain designed specifically for stablecoin transactions.

ETHZilla adds treasury yield plan and repurchases stock - ETHZilla holds 102,255 ETH (valued at ~$460 million) and $228 million in cash equivalents, alongside a new $80 million financing line from Cumberland DRW.

Circle brings native USDC to Hyperliquid - Circle launched native USDC and its upgraded Cross-Chain Transfer Protocol (CCTP v2) on Hyperliquid’s HyperEVM.

Ethena prepares fee switch as ENA holders eye yields - Ethena confirmed conditions for its ENA fee switch have been met, pending Risk Committee approval and a tokenholder vote. Preconditions included USDe supply above 6 billion, lifetime revenue over $250 million, and integration on four of the top five derivatives venues.

Ripple donates $25m RLUSD stablecoin to veterans and small businesses - Ripple pledged $25 million in RLUSD to Accion Opportunity Fund and Hire Heroes USA. The program is expected to generate $1 billion in economic impact and create 14,000 jobs for veterans and spouses.

EBANX highlights stablecoins at Mexico summit - CEO João Del Valle said stablecoins are becoming the foundation for faster, cheaper, and programmable payment systems.

Kraken partners with Circle to expand USDC and EURC - Kraken deepened its Circle partnership, giving clients more liquidity, lower fees, and new access to EURC. Circle and Kraken aim to build the world’s largest and most widely used stablecoin network.

Space and Time integrates USDC for zk coprocessing - Space and Time added support for USDC payments, automatically converting them to SXT for protocol use.

💡Rollouts: AllScale launches Invoice featuer, PayPal pushes PYUSD across 9 chains, MetaMask rolls out mUSD

🚀AllScale launches Invoice as first app in Stablecoin OS

• AllScale Invoice enables small businesses, freelancers, and AI agents to send invoices and receive instant payments in stablecoins.
• The platform features a self-custodial wallet with invoicing, checkout, and payroll tools, cross-chain account abstraction with EIP-7702 paymaster, and aggregated payment rails with on/off-ramps.
• Users can create an account in 30 seconds with no upfront KYC, receive payments in USDT/USDC instantly, and earn AllScale Points with utilities and rewards.

USDH launches as Hyperliquid validators back Native Markets

• Native Markets won nearly 70% of validator votes to issue Hyperliquid’s USDH, with the Foundation abstaining.
• Rollout will start with capped mints and redeems of $800 per transaction, with both HIP-1 and ERC-20 versions.
• The new stablecoin faces controversy over governance while competing against $6 billion in existing USDC reserves.
• USDH will be backed by Treasuries and cash, with on-chain reserves managed by Superstate and off-chain by BlackRock.
• Revenue will be split equally between HYPE buybacks/assistance and expanding USDH adoption.

Venmo me BTC? PayPal flips the switch on crypto P2P

• U.S. users will soon be able to send BTC, ETH, PYUSD, and other digital assets across PayPal, Venmo, and compatible wallets.
• The “PayPal links” feature enables personalized payment links, with personal transfers exempt from 1099-K tax reporting.
• The update builds on PayPal World, its interoperability initiative, as consumer payment volume rose 10% in Q2 year-over-year.

Your wallet made a stablecoin: MetaMask drops mUSD

• MetaMask launched mUSD, issued by Stripe’s Bridge platform and backed 1:1 by highly liquid dollar assets.
• Circulating supply is $18 million, with transparency and cross-chain support via M0’s liquidity network.
• mUSD is the first stablecoin from a self-custodial wallet, with card payments expected by year-end.

Google introduces AI agent payment protocol with stablecoin rails

• Google Cloud released an open-source protocol supporting both traditional rails and stablecoins for AI agent transactions.
• The framework verifies user consent, encodes guardrails, and settles across cards and on-chain assets.
• It forms part of Google’s Universal Ledger for programmable institutional settlements.
• Coinbase co-designed the specification, highlighting the convergence of decentralized systems and AI.
• The upgrade enables on-chain or card-based settlement for agent-to-agent transactions.
• The crypto-specific “x402” extension will support stablecoin payments, aligned with Ethereum’s ERC-8004.

Maple expands syrupUSDT to Plasma network - Maple deployed syrupUSDT on Plasma, marking its first move beyond Ethereum. Users can deposit into a Midas-hosted vault for yield and Plasma mainnet rewards.

Polygon boosts block capacity to capture stablecoin growth - Polygon plans to raise its block gas limit, increasing capacity from 1,071 to 1,428 transactions per block.

Google Cloud partners with EigenLayer on secure agentic payments - Google and EigenLayer will add Ethereum restaking security and accountability to AI agent payments.

PayPal USD expands to Tron via LayerZero - PYUSD will be available on Tron as PYUSD0, fully fungible with existing PYUSD across chains.

PayPal’s stablecoin tops $1.3b as it spreads to nine chains - PYUSD expanded to nine blockchains, including Tron, Avalanche, and Aptos, reaching a $1.3 billion market cap.

Nubank adds stablecoin payments to credit cards - Nubank now lets customers pay with dollar-pegged stablecoins directly through its credit card. Brazilians already use stablecoins for 90% of crypto transaction volume; in Argentina, USDT and USDC comprised 72% of purchases in 2024.

Quantexa launches compliance platform for small banks - Quantexa unveiled an AML monitoring tool designed for U.S. mid-size and community banks to reduce false positives.

Transak and MetaMask partner on seamless stablecoin onramps - MetaMask’s Deposit button now exclusively uses Transak to onramp stablecoins like USDC and USDT at near 1:1 rates.

Bitwise files for stablecoin and tokenization ETF - Bitwise applied for the first U.S. ETF targeting both stablecoins and real-world asset tokenization. The fund will split 50-50 between equities and crypto, with 20–30 companies capped at 15% each.

Circle brings native USDC to Hyperliquid - USDC is now live on Hyperliquid’s HyperEVM, supported by Circle’s upgraded CCTP v2 for cross-chain transfers.

Curve Finance proposes $60m yield basis plan - Curve plans to mint $60 million of crvUSD to seed its Yield Basis program with three bitcoin-focused pools.

Ripple, DBS, and Franklin Templeton to list tokenized assets - DBS will list Ripple’s RLUSD stablecoin and Franklin Templeton’s tokenized money market fund.

Rain and Lithic team up on stablecoin card issuance - Rain and Lithic will expand stablecoin-native card programs, processing millions of transactions in 150 countries.

KuCoin Pay enables stablecoin payments at SPAR stores - KuCoin Pay users can now pay with stablecoins at more than 100 SPAR stores in Switzerland. Merchants receive instant fiat settlements without conversion hassles.

YZi Labs increases stake in Ethena Labs as USDe grows - Ethena’s USDe stablecoin surpassed $14 billion in market capitalization. New funds will support expansion on BNB Chain, institutional settlement via Converge, and USDtb integration through Anchorage.

MoneyGram makes stablecoins core of new app - CEO Anthony Soohoo called stablecoins the “killer app” for crypto, enabling real-time settlement.

Crossmint powers MoneyGram’s stablecoin experience - MoneyGram and Crossmint launched a peer-to-peer network reaching 50 million people in 200 countries. Colombian families can now store, spend, and save in dollar-backed stablecoins without keys or gas fees.

South Korea pilots KRW1 won-backed stablecoin on Avalanche - Each KRW1 is backed 1:1 by won held at Woori Bank, with real-time proof of reserves via API integration.

USDD launches natively on Ethereum with rewards campaign - USDD went live natively on Ethereum on September 8 with a Peg Stability Module for instant swaps.

Plasma to launch mainnet and XPL token with $2b TVL - Plasma’s mainnet goes live September 25 with $2 billion TVL and over 100 DeFi integrations.

Coinbase introduces USDC onchain lending up to 10.8% - Coinbase now lets users lend USDC onchain with current yields up to 10.8%.

💲Money in motion: This week’s hottest stablecoin industry financing moves!

👋 That's your stablecoin scoop for the week.

Until next time — AllScale Weekly

👉 Learn how AllScale can help your team pay, invoice, and scale globally

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