Editor - Jackie

🌍 Macro: New Year, New Predictions for the stablecoin landscape

VC forecasts: Payments infrastructure takes center stage in 2026 crypto outlook

• Dragonfly managing partner Haseeb Qureshi said his strongest conviction for 2026 is payments infrastructure, with stablecoin supply expected to expand sharply.
• Qureshi expects real-world usage and durable distribution to dominate, especially in payments and settlement rails. Specifically, Ethereum and Solana were highlighted as potential outperformers.
• This view of institutions deploying stablecoins at scale is echoed by Galaxy Ventures.

Industry leaders speak up: Privacy infrastructure moves from experimentation to production

• Industry leaders predict private stablecoins will emerge as a core onchain payments layer with configurable privacy and policy controls.
• Experts also forecast the industrialization of privacy tech, moving from testnets to production deployments.
• Threat-resistant, conditional privacy models are expected to become default as stablecoin payments scale.

Crypto ETFs head into 2026 with regulatory momentum

• U.S. spot bitcoin ETFs recorded about $22 billion in net inflows in 2025 despite late-year outflows.
• Ether ETFs attracted $9.3 billion in mid-2025 as regulatory clarity around stablecoins improved.
• At least 126 new crypto ETP filings are pending, with SEC approval timelines shortened to as little as 75 days.

🔍 Policies: SEC rulemaking rises in importance, South Korea officials stall over framework, and Coinbase warns stablecoin ban interest aiding China

Crypto industry shifts focus to SEC action as legislation slows

• Industry leaders said passage of a comprehensive market structure bill may slip past 2026, increasing reliance on SEC rulemaking.
• Regulators are signaling a deregulatory posture, with the SEC indicating many tokens may not be securities.
• Notably, stablecoin rules are advancing faster than broader market structure legislation.

South Korea’s stablecoin framework stalls over issuer control

• Draft rules would require stablecoin reserves to be held entirely in bank deposits or government bonds with full custodial control.
• The Bank of Korea wants banks to hold at least 51% ownership in stablecoin issuers, while regulators warn this could limit competition.
• The deadlock could delay full implementation of the law until at least 2026.

Coinbase warns stablecoin interest ban could aid China

• Coinbase warned that banning yield on U.S. stablecoins could give China a strategic edge as it allows interest on the digital yuan.
• China’s central bank will permit banks to pay interest on e-CNY starting January 2026.
• The GENIUS Act currently bars interest-bearing dollar stablecoins, with enforcement details still under debate.

🔥 Biz Beats: BlackRock’s BUIDL proves institutional demand for onchain cash yield

• BlackRock’s BUIDL distributed roughly $100 million in dividends and surpassed $2 billion in assets since launching in 2024.
• The tokenized money-market product is used as collateral and backs stablecoins such as Ethena’s USDtb.
• BUIDL provides regulated, onchain dollar yield for institutional investors, distinct from payment-focused stablecoins.

👋 That’s your stablecoin scoop for the week!

Until next time — AllScale Weekly

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