Editor - Jackie

🔍 Policies: U.S. banks enters on-chain era, Korea pushes won stables, and UK targets full crypto regs by 2027

The U.S. Policymakers were on the move this week...and here are the snapshots:

Friction ahead for stablecoin yields in U.S. crypto bill talks

• Discussions between lawmakers and industry leaders highlighted stablecoin yield as a major unresolved issue.
• Other notable discussions were on dividing jurisdiction between the SEC and CFTC.

Light ahead? Senate and regulators align on stablecoin rules timeline

• Macquarie analysts expect a comprehensive federal crypto framework by early 2026 as market structure and GENIUS Act rules advance in parallel.

Elizabeth Warren raises alarms over USD1 and DeFi risks

• Sen. Elizabeth Warren warned that decentralized exchanges pose national security risks, citing PancakeSwap activity, and requests formal responses from regulators by Jan. 12.

Trump weighs pro-stablecoin Fed chair candidate after an “excellent” interview

• Donald Trump praises Fed Governor Christopher Waller as a candidate for the Fed chair role after an extensive interview. Waller is allegedly pro-stable and has previously publicly described them as a new form of private money.

FDIC rolls out first U.S. stablecoin rule under GENIUS Act

• The FDIC issued its first proposed rule governing how institutions can apply to issue stablecoins, with additional rules covering areas such as capital and liquidity to follow in the coming months.
• The framework includes a 60-day public comment period, a 120-day approval window, and a formal appeals process.

PayPal moves toward bank charter as PYUSD strategy deepens - PayPal applied for a Utah industrial bank license, proposing the creation of PayPal Bank. The bank would offer lending and interest-bearing savings products to small businesses.

Bank of America says U.S. banks are entering an onchain era - Bank of America said U.S. policy has shifted from discussion to execution on stablecoin regulation.

UK targets full crypto financial regulation by 2027 - The UK Treasury plans to regulate crypto assets like traditional financial products by 2027. Oversight will fall under the FCA, with a focus on transparency and sanctions enforcement.

South Korean stocks rally as lawmakers push toward won stablecoin approval - South Korea’s ruling party signaled plans to advance won-denominated stablecoin regulation early next year, reversing a long-standing domestic issuance ban.

🔥 Biz Beats: Circle–Intuit bring USDC to 100M+ users, Coinbase launches "bundle" system, and PayPal’s USD.AI ties PYUSD to GPUs

Coinbase accelerates ‘everything exchange’ strategy with stablecoins at the core

• Coinbase announced plans to offer stocks, ETFs, prediction markets, and Solana-based DEX assets inside one unified platform.
• The exchange will support custom stablecoins backed by USDC and other dollar-denominated tokens.

Visa launches stablecoin advisory unit as settlement volume scales

• Visa introduced a stablecoins advisory practice to help banks and enterprises design implementation strategies.
• The company reported a $3.5 billion annualized run rate in stablecoin settlement volume with early clients such as Navy Federal Credit Union and Pathward.

PayPal deploys PYUSD to finance AI infrastructure via USD.AI

• PayPal will use PYUSD to fund onchain financing for AI infrastructure such as GPUs and data centers through USD.AI.
• Loans will be denominated in PYUSD, with proceeds paid directly into PayPal accounts.
• A one-year incentive program will offer 4.5% yield on up to $1 billion in PYUSD deposits, backed by more than $650 million in compute-linked collateral.

Visa-linked USDC settlement raises tax compliance burden - Visa card issuers settling in USDC face heightened tax compliance as the IRS treats stablecoins as digital assets, requiring timestamped transaction records ahead of a broader rollout expected in 2026.

Russia’s largest bank experiments with stablecoin-adjacent DeFi tools - Sberbank is piloting regulated blockchain and DeFi-adjacent tools while framing stablecoins as a global trend whose wider adoption depends on clearer Russian legal frameworks.

Ripple expands RLUSD across Ethereum layer-2 networks - Ripple is expanding its RLUSD stablecoin across multiple Ethereum layer-2s via Wormhole infrastructure as supply reaches about $1.3 billion under NYDFS trust oversight.

Intuit partners with Circle to roll out USDC payments across TurboTax and QuickBooks - Intuit partnered with Circle to integrate USDC payments across TurboTax and QuickBooks, enabling faster payouts at scale for over 100 million customers.

Lido unveils $60M plan to expand into stablecoins and new assets - Lido proposed a $60 million expansion plan to move beyond liquid staking into stablecoin and multi-asset products while maintaining its roughly 24% share of all staked ETH.

Polkadot gains momentum as Coinbase enables native USDC support - Polkadot saw heightened market activity after Coinbase enabled native USDC support, driving higher institutional volumes and block trades as DOT outperformed broader crypto benchmarks.

Kamino enables tokenized public equities as stablecoin collateral on Solana - Kamino enabled SEC-registered tokenized equities from Superstate to be used as stablecoin collateral on Solana, allowing eligible non-U.S. users to borrow while retaining equity price exposure.

💡Rollouts: 1st ever U.S. bank-issued stablecoin, JPM launches $100M tokenized MMF, and StraitsX lights SGD-USD swaps

SoFi launches first U.S. bank-issued stablecoin for payments

• SoFi became the first U.S. national bank to issue a stablecoin, launching SoFiUSD.
• The token is fully backed 1:1 by cash held at the Federal Reserve.
• SoFiUSD is live internally and expected to reach customers in the coming months.

PayPal launches PYUSD Savings Vault targeting $1B in deposits

• PayPal introduced a PYUSD Savings Vault on Spark offering a listed 4.25% APY.
• The product aims to grow stablecoin deposits to $1 billion, starting from roughly 20% of that on day one.
• Vault assets include stablecoins, on-chain lending, corporate debt, and U.S. Treasuries.

JPMorgan debuts tokenized money market fund redeemable in USDC

• JPMorgan launched the My OnChain Net Yield Fund on Ethereum with a $100 million seed.
• Investors can redeem fund shares using either cash or USDC.
• Tokenized money market funds have grown from $3 billion to $9 billion in a year, signaling rising institutional adoption.

Brazil’s B3 to debut real-backed stablecoin and tokenization platform - Brazil’s main stock exchange plans to launch a real-linked stablecoin and tokenization platform in 2026 with shared liquidity for on-chain settlement alongside crypto-linked derivatives.

Uniform Labs launches Multiliquid to bridge RWAs and stablecoins - Uniform Labs unveiled Multiliquid, a system enabling 24/7 swaps between tokenized money market funds and stablecoins while separating payment liquidity from yield in a $35 billion market.

Exodus enters stablecoin market with MoonPay-backed digital dollar - Exodus announced a fully reserved, MoonPay-backed digital dollar that will power self-custodial payments via Exodus Pay, with a launch expected in January 2026.

Visa launches USDC settlement pilot on Solana for U.S. banks - Visa launched a U.S. bank-focused USDC settlement pilot on Solana with Cross River and Lead Bank after reaching a $3.5 billion annualized run rate.

StraitsX plans SGD–USD stablecoin swaps on Solana - StraitsX plans to launch XSGD and XUSD on Solana to enable instant on-chain SGD–USD swaps after processing over $18 billion in cumulative volume.

SBI and Startale to launch regulated yen stablecoin in 2026 - SBI Holdings and Startale will launch a fully regulated yen stablecoin for global institutional settlement under Japan’s framework, with a planned release in Q2 2026.

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

👋 That’s your stablecoin scoop for the week….and Merry early Christmas those who celebrate 🎄!!!

Until next time — AllScale Weekly

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