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AllScale Raises $5M Seed Led by YZi Labs to Build World’s First Self-Custody Stablecoin Neobank

• AllScale announced a $5 million Seed round led by YZi Labs, Informed Ventures, and Generative Ventures to build the world’s first self-custody stablecoin neobank for global microbusinesses.
• The platform enables instant stablecoin payments, self-custody wallets, and invoicing tools powered by account abstraction and LLM-enabled copilots, addressing high fees and slow settlement times in traditional systems.
• Backed by veterans from Binance, OKX, Kraken, Block, Capital One, and more, AllScale aims to become the financial layer for micro-businesses such as freelancers and content creators, with expansion plans across Africa and Latin America.

🌍 Macro: Euro stables double to $680M under MiCA, Korea’s Big Tech preps a won race, and HSBC warns USDT depeg risk

Euro stablecoin market doubles under MiCA but remains small relative to USD tokens

• Euro stablecoins doubled in the year following MiCA after a prior 48% decline, reaching a $680 million market cap.
• EURS surged 644% to $283.9 million, with EURC and EURCV also posting strong growth.
• Monthly transaction volume rose nearly ninefold to $3.83 billion, alongside a sharp rise in European search activity for euro-denominated stablecoins.

Korean tech giants line up for won stablecoin race - Local media said the competition for won-denominated stablecoin supremacy in South Korea “has officially begun.” Naver is viewed as having an edge because its acquisition of Upbit brings around 10 million users and roughly $1.8 billion in average daily trading volume.

HSBC says S&P’s USDT downgrade spotlights depegging risk - HSBC analysts said S&P’s downgrade is a reminder that USDT carries depegging risk linked to reserve quality and transparency.

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🔍 Policies: IMF warns dollar stables could fragment payments, FDIC readies first GENIUS rulebook, and Asia fast-tracks national frameworks

IMF warns stablecoins risk currency substitution and payment fragmentation

• The IMF said stablecoins may accelerate currency substitution and fragment payment systems without interoperability.
• Risks are most acute in economies with high inflation, weaker institutions and low confidence in domestic currencies.
• The IMF noted USDT and USDC have tripled since 2023 to $260 billion, with stablecoin trading volumes reaching $23 trillion in 2024.

FDIC prepares first GENIUS Act rules for U.S. stablecoin issuers

• FDIC Vice Chair Travis Hill said the agency plans to propose an application framework for GENIUS Act stablecoin issuers later this month, followed by prudential standards early next year.
• The FDIC will supervise and license subsidiaries of FDIC-supervised institutions that issue stablecoins, setting capital, liquidity, and reserve diversification requirements.
• The Fed is working on capital and liquidity rules of its own, while the FDIC is also drafting guidance on the regulatory status of tokenized deposits in line with earlier policy recommendations.

India’s DRI reports smugglers replacing hawala with USDT-based transfers - India’s DRI said crypto provides faster, more anonymous settlement for smuggling networks, with USDT used in a $12.7 million gold-smuggling operation.

Israel’s central bank targets tighter oversight as stablecoins scale - Governor Amir Yaron said stablecoin usage is no longer a marginal phenomenon and now warrants closer oversight. He noted that 99% of local stablecoin activity is concentrated in Tether and Circle, raising concentration concerns.

Canada weighs stablecoin rules while Scotiabank sees limited immediate impact - Scotiabank said Canadian efforts are focused on upgrading payment speed, efficiency, and 24/7 settlement rather than radically reshaping markets. The bank highlighted Tether’s roughly $185 billion footprint, with reserves largely in Treasuries, repos, and money market funds.

South Korea ruling party pushes deadline on stalled stablecoin bill - Lawmaker Kang Jun-hyeon gave the government until December 10 to submit a stablecoin proposal, with the goal of passing it in January.

Taiwan targets late-2026 launch for first regulated stablecoin - Financial regulators said Taiwan’s first regulated stablecoin could debut in late 2026, following pending legislation. The draft bill has cleared initial cabinet reviews and could pass its third reading in the next session.

Ripple expands XRP and RLUSD payments in Singapore after license win - Ripple received approval in Singapore to broaden its payment offerings using XRP and its RLUSD stablecoin. resident Monica Long called MAS a leader on regulatory clarity, while the company cited roughly 70% year-over-year growth in on-chain activity in Asia-Pacific.

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🔥 Biz Beats: RLUSD tops $1B with 40% on Aave, BNP joins Qivalis, and Aave trims low-yield chains to refocus on profitable markets

Ripple’s RLUSD stablecoin crosses $1 billion and deepens DeFi ties

• RLUSD’s market cap has surpassed $1 billion, with about $1.03 billion (around 82%) on Ethereum and roughly $235 million on the XRP Ledger.
• More than 40% of the RLUSD supply on Ethereum sits on Aave, indicating growing use as DeFi collateral.
• Ripple recently acquired Rail for $200 million to add on- and off-ramps plus liquidity tools, strengthening RLUSD’s infrastructure and adoption pipeline.

Tether shareholder’s £19M donation to Reform UK raises stablecoin policy concerns

• Christopher Harborne donated £9 million in a single contribution and has given £21 million cumulatively to Reform UK.
• Nigel Farage referenced Bank of England views that individuals should not hold more than £10,000 in stablecoins, prompting concerns among high-net-worth holders.
• Harborne is a shareholder in Tether and Bitfinex, while his son leads Rhino.fi, which partnered with Tether last year.

BNP Paribas joins European bank stablecoin consortium Qivalis

• BNP Paribas has joined nine other European banks in Qivalis, a euro-stablecoin venture led by former Coinbase Germany executive Jan-Oliver Sell.
• The group plans to apply for an e-money license and roll out its euro stablecoin in the second half of 2026.
• The initiative targets a euro-stablecoin market that is only about $670 million today, compared with roughly $300 billion in total stablecoins, where EURC and EURCV are still relatively small.

Aave DAO rethinks multichain footprint as some networks underperform - The Aave Chan Initiative said several Aave deployments do not generate enough revenue to justify their operational and risk costs. A new framework under discussion would require at least $2 million in annual revenue and introduce a dedicated reserve factor for smaller markets, though some community members fear this could significantly shrink Aave’s presence.

Coinbase CEO says banks ignoring stablecoins will fall behind - Coinbase is working with major U.S. banks on stablecoin, custody and trading pilots. Brian Armstrong warned that banks unwilling to adopt stablecoin technology will be left behind as competitors move ahead.

MoneyGram partners with Fireblocks to power global stablecoin settlements - MoneyGram, which serves 50 million customers across over 200 territories, will use Fireblocks for a programmable stablecoin settlement layer.

Kraken teams up with Deutsche Börse to advance institutional crypto infrastructure - Kraken said the partnership is a major signal of accelerating institutional adoption in Europe. The firms aim to create a full-stack infrastructure bridge connecting Kraken’s services with Eurex and Clearstream, which hold $23 trillion in assets under custody.

Re7 faces whistleblower claims over depegged stablecoin vaults - Re7 sent a cease and desist letter “denying any wrongdoing, misconduct, or breach” in the strongest possible terms. A whistleblower alleged failures in asset selection, loan-to-value configuration, abnormal borrowing monitoring, borrowing restrictions, liquidations, and incident disclosure.

Cardano treasury backs 70M ADA push into stablecoins and infra - Cardano governance approved a 70 million ADA treasury withdrawal with more than 60% support.

Monad faces liquidity-retention test after hyped TGE - MON is down 28% on the week but remains 16% above its ICO price, with DeFi total value locked at $277.5 million.

Opera and Celo deepen tie-up to push stablecoin payments to millions - Opera and Celo aim to make low-cost stablecoin payments ubiquitous and say they are working toward financial inclusion for one billion people by 2030.

Monad activity softens as liquidity flows back out post-TGE - MON has fallen 28% on the week but remains 16% above its ICO price, with DeFi TVL at $277.5 million.

Prosecutors seek 12-year sentence for Do Kwon over UST collapse - U.S. prosecutors requested a 12-year sentence, citing the scale of the Terraform crash and its cascading role in the broader Crypto Winter.

Aave removes USDS and winds down underperforming chains - Aave governance voted 99.5% to remove USDS after concluding it generates negligible revenue while introducing asymmetric risks. The proposal includes raising the USDS reserve factor to 25% and removing the asset from e-Mode.

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💡Rollouts: Western Union readies Stable Card for hyperinflation markets, Sony plans a USD coin for games, and BNB’s Predict.Fun chases yield

CZ previews Predict.Fun, a BNB Chain prediction market with yield features

• Predict.Fun allows users to earn yield on funds while their predictions remain open.
• Early activity includes over 12,000 users, around 300,000 bets and $300,000 in total market volume.
• CoinDesk noted the platform may face liquidity constraints because BNB Chain has limited native stablecoin issuance.

Western Union unveils Stable Card to protect users in high-inflation markets

• The Stable Card is designed for consumers in hyperinflationary markets, where purchasing power can deteriorate rapidly.
• Western Union said stablecoins could replace correspondent banking rails for the $500 million it moves daily.
• The company also announced USDPT, a Solana-based stablecoin expected to debut in the first half of 2026.

Sony plans U.S. dollar stablecoin for games and media

• Sony Bank is preparing a U.S. dollar-denominated stablecoin as early as fiscal 2026, aimed at payments for games, anime, subscriptions, and other digital content.
• The bank plans to set up a U.S. unit, has partnered with Bastion for infrastructure, and has filed to acquire a U.S. national banking charter to support crypto activity.
• Sony hopes U.S. customers will use the stablecoin for recurring payments to reduce card fees, building on its launch of the Soneium Ethereum layer-2 network in early 2025.

Plume launches Nest Vaults to bring institutional RWA yield to Solana - Five vaults — nBASIS, nOPAL, nTBILL, nWisdom and nAlpha — are now live on Solana. Users deposit stablecoins to mint a yield-accruing token that can be redeemed at any time.

Unlimit launches Stable.com as a decentralized stablecoin clearing house - Stable.com is pitched as the first platform to combine non-custodial stablecoin swaps with direct global fiat off-ramps. Users can trade with no gas fees or commissions while retaining full control of their assets.

Startale USD becomes default stablecoin for Sony’s Soneium network - Startale USD (USDSC) has gone live on Soneium as the default stablecoin for settlement. Infrastructure provider M0 connects issuance, application logic, and liquidity to support the asset.

👋 That’s your stablecoin scoop for the week.

Until next time — AllScale Weekly

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