Editor - Jackie

🌍 Macro: GENIUS unlocks bank-issued stables as IMF spotlights EM pressure points

Banks take the wheel: Elliptic sees global pivot toward stablecoins

• Elliptic reports governments are moving away from enforcement-led crypto policy toward comprehensive frameworks that support innovation.
• The U.S. passed the GENIUS Act, creating its first federal stablecoin framework and enabling banks to prepare for stablecoin custody and issuance.
• Stablecoins are evolving beyond simple IOUs and are now used as collateral, settlement rails, and yield-bearing instruments, according to Kraken’s Calvin Leyon.

Stablecoins grow, systemic risk doesn’t! IMF sees pressure points, not panic

• The IMF says stablecoins could circumvent capital controls and accelerate currency substitution in emerging markets.
• USDT and USDC together now total about $264 billion in market capitalization.
• Analysts note roughly 80% of stablecoin usage today is still tied to crypto trading rather than real-world treasury flows.

🔍 Policies: UK targets 2026 sterling stablecoin payments, U.S. Senate stalls, and Argentina readies bank crypto

London calling: UK regulator makes stablecoin payments a 2026 priority

• The FCA said supporting UK-issued sterling stablecoin payments will be a top priority in 2026.
• Regulators are coordinating with the Bank of England on a full regulatory framework expected to go live next year.
• Sterling stablecoins remain tiny at under $6 million in supply compared to the $308 billion global market.

Hurry up and wait... U.S. Senate struggles over crypto and stablecoin legislation

• Senators described negotiations over market structure and stablecoin provisions as slow and frustrating heading into year-end deadlines.
• Disputes center on stablecoin yield language and how decentralized finance should be regulated.
• Lawmakers remain divided on whether a markup can realistically happen before the holidays.

CFTC pilot allows USDC to be posted as derivatives collateral - The CFTC launched a regulatory pilot allowing futures commission merchants to use BTC, ETH, and USDC as collateral under new custody and reporting rules after withdrawing prior guidance that blocked crypto collateral.

Argentina opens door for banks to offer crypto services - Argentina’s central bank said banks could begin offering crypto services by April 2026 as stablecoins already dominate over 60% of local crypto activity amid capital controls, peso distrust, and triple-digit inflation.

U.S. teachers union urges Senate to pull crypto market structure bill - The American Federation of Teachers urged lawmakers to halt the bill, warning it could expose pensions to risk, weaken stablecoin safeguards, and allow tokenized equities to bypass securities laws as a vote nears.

Tether gains Abu Dhabi approval to expand USDT across nine chains - ADGM recognized USDT for regulated use on nine additional blockchains including TON, TRON, Polkadot, and Near.

CryptoUK joins U.S. policy group as stablecoin rules take shape - CryptoUK moved under The Digital Chamber to coordinate transatlantic policy as U.S. stablecoin rules enter implementation and the UK advances a phased, consumer-focused regulatory approach.

Australia expands regulatory relief for stablecoin intermediaries - Australia’s ASIC expanded licensing relief for certain stablecoin intermediaries while tightening reserve disclosure, audit timelines, and custody rules under updated digital-asset guidance.

Mexico’s central bank keeps distance from crypto and stablecoins - Mexico’s central bank reaffirmed its long-standing separation from crypto, citing volatility and crime risks, while warning that unchecked stablecoin growth could threaten financial stability without coordinated global regulation.

🔥 Biz Beats: USD1 deepens on Binance, Tether eyes $500B equity talk, and Keel lines up $2.5B

On-ramp at scale: Binance integrates Trump-linked USD1 across core trading infrastructure

• Binance added USD1 trading pairs against BNB, ETH, and SOL and integrated the token into its core trading infrastructure.
• The exchange will convert Binance-Peg BUSD reserves into USD1 and offer zero-fee swaps with USDT and USDC.
• USD1’s market cap has climbed to roughly $2.7–$2.8 billion within weeks of launch.

Keel sets the pace by launching $500M push to bring RWAs to Solana

• Keel launched a $500 million campaign to accelerate real-world asset adoption on Solana.
• The initiative is funded using reserves from Sky’s $6 billion decentralized stablecoin, USDS.
• More than 40 institutions have already expressed interest, with a longer-term goal of deploying up to $2.5 billion into Solana-based tokenized finance.

Incentives + integrations = PayPal’s PYUSD supply surges toward $4B on DeFi demand

• PYUSD circulation jumped 224% since September to over $3.8 billion, driven largely by DeFi integrations and incentive programs.
• Ethena has become the largest holder with $1.2 billion of PYUSD held via Copper, while Solana supply grew from about $250 million to over $1 billion in three months.
• Protocols like Kamino are offering nearly 6% yield on PYUSD lending, partially subsidized by PayPal, accelerating on-chain usage.

Circle wins ADGM license and names former Visa exec to lead MENA - Circle secured regulated authorization from Abu Dhabi Global Market and appointed former Visa executive Dr. Saeeda Jaffar to lead its MENA expansion under a stablecoin framework emphasizing transparency and consumer protection.

Circle partners with Bybit to grow USDC beyond Coinbase - Circle partnered with Bybit to expand USDC liquidity across trading, payments, and cards by integrating fiat on- and off-ramps as USDC supply trails USDT at roughly $78 billion versus $186 billion.

Tether-backed payments app Oobit expands into the U.S. - Tether-backed Oobit launched U.S. operations through a Bakkt partnership, enabling nationwide coverage with instant fiat payouts for merchants while building on its $25 million Series A.

Tassat secures patent for yield-in-transit stablecoin settlement - Tassat won a U.S. patent for intraday interest accrual during 24/7 on-chain settlement, a system already onboarding over 50 institutions via its Lynq network.

YouTube enables PYUSD payouts for U.S. creators - YouTube now allows U.S. creators to receive earnings in PYUSD payments, following the GENIUS Act and alongside a creator economy that has paid out over $100 billion in four years.

UAE fuel giant to accept stablecoins at nearly 1,000 stations - ADNOC Distribution will accept AE Coin payments at 980 stations across three countries using a central-bank-licensed stablecoin backed 1:1 by dirhams.

Hex Trust launches wrapped XRP to bridge XRP and RLUSD - Hex Trust will issue wrapped XRP with over $100 million in initial TVL to improve interoperability between XRP and Ripple’s RLUSD across multiple blockchains under regulated custody.

Tether considers tokenizing equity after massive valuation push - Tether is exploring a potential equity raise valuing the firm at $500 billion and may tokenize its shares as USDT circulation nears $186 billion and profits approach $15 billion.

Anchorage secures another stablecoin issuance client - Anchorage Digital was selected by OSL Group to issue the USDGO stablecoin, reinforcing its role as the only U.S. federally chartered issuer.

Klarna explores crypto wallet strategy following stablecoin launch - Klarna is working with Privy to explore a crypto wallet strategy after launching KlarnaUSD on Tempo for its 114 million users and $112 billion in GMV.

Lead Bank partners with Loop Crypto to scale stablecoin payments - Lead Bank partnered with Loop Crypto to expand stablecoin and crypto payment infrastructure as the a16z-backed bank builds on its $70 million raise and card-linked initiatives.

Phantom’s CASH stablecoin crosses $100M shortly after launch - Phantom’s CASH stablecoin surpassed $100 million in circulating supply within two months, driven by fee-free accounts, Stripe-linked funding, and transaction incentives.

💡Rollouts: Stripe-backed Tempo debuts testnet, Phantom adds $5.8B Kalshi flow, and Coinbase rolls out AI agent pay

Stripe-backed Tempo blockchain launches public testnet

• Tempo launched a public testnet designed specifically for real-world stablecoin payment testing.
• Partners now include Klarna, Kalshi, Mastercard, and UBS, alongside earlier backers like Visa and Deutsche Bank.
• Transactions cost about one-tenth of a cent and are payable in dollar-denominated stablecoins.

Boo’d up! Phantom integrates prediction markets using stablecoin rails

• Phantom added Kalshi prediction markets for over 20 million users.
• Trades can be executed using SOL or Phantom’s CASH stablecoin directly in-wallet.
• Kalshi generated $5.8 billion in activity last month, with Robinhood driving over half of volume.

Coinbase expands stablecoin-based AI agent payments - Coinbase released x402 V2 to expand stablecoin payments for AI agents with wallet-based identity, dynamic recipients, and multi-chain support under a unified payment model for humans and autonomous software.

Klarna and Privy begin work on consumer crypto wallet - Klarna and Privy launched a research effort to design a mainstream-friendly crypto wallet that simplifies onboarding as KlarnaUSD already operates on the Tempo blockchain.

OSL to launch U.S.-regulated stablecoin with Anchorage - OSL Group will issue the USDGO stablecoin with Anchorage managing issuance, targeting cross-border payments and on-chain settlement in a market nearing $300 billion.

StableChain mainnet goes live with USDT as gas - StableChain launched its payments-focused mainnet using USDT as native gas, governed by a fixed-supply STABLE token after raising $28 million and attracting over $2 billion in pre-deposits.

Bitfinex-backed StableChain faces rocky token debut - Bitfinex-backed StableChain’s mainnet launch saw withdrawal issues, complex gas mechanics, and a roughly 25% drop in its STABLE token shortly after trading began.

Exodus announces self-custodial stablecoin payments app for 2026 - Exodus plans to launch Exodus Pay in early 2026 as a self-custodial stablecoin app enabling card-based spending and phone-number transfers aimed at younger users.

Malaysia unveils ringgit-backed stablecoin for APAC payments - Malaysia introduced RMJDT, a ringgit-backed stablecoin positioned as a faster APAC payment rail amid $2.4 trillion in regional on-chain stablecoin activity.

Privacy-focused USDC variant launches on Aleo testnet - Circle launched USDCx on Aleo as a privacy-preserving, compliant stablecoin variant, with a mainnet debut expected by the end of January.

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

👋 That’s your stablecoin scoop for the week.

Until next time — AllScale Weekly

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