The Stable Scoop: Japan’s first yen coin, MetaMask mUSD rollout, and Bullish raises $1.15B all in stablecoins

Editor - Jackie

🌍 Macro: DeFi-fueled rally into 2027, Goldman projects trillions for stables

Bernstein says the crypto bull market “party” could rock on to 2027

• Bernstein analysts project the crypto bull run could stretch into 2026 and peak in 2027, fueled by stablecoin adoption.
• Circle’s USDC supply has reached $68B and could rise to $99B by 2026 and $173B by 2027.
• Analysts said USDC’s role as a liquidity backbone for DeFi will offset falling rate revenues and drive inflows into platforms and issuers.

Stablecoin gold rush? Goldman Sachs predicts market to reach trillions

• Goldman Sachs estimates stablecoins could grow from $271B today to several trillions, with USDC alone adding $77B in supply by 2027 at a 40% CAGR.
• Treasury Secretary Scott Bessent argues stablecoins would deepen liquidity in short-term Treasuries while strengthening the dollar’s global role.
• A BIS study noted inflows from stablecoins could trim 3-month Treasury yields by as much as 2.5 bps.

⚡ As stablecoins scale toward the trillions, make your payouts future-proof—run fast, compliant payroll and invoicing with AllScale!

🔍 Policies: Japan to OK first yen stablecoin, Fed rolls back bank curbs, and China weighs yuan pilots

Japan joins the game with first yen stablecoin launch

• Japan’s FSA is expected to approve the nation’s first yen-pegged stablecoin this fall, issued by JPYC.
• JPYC aims to release ¥1 trillion ($6.78B) of stablecoins over three years, backed by deposits and government bonds.
• Use cases include international remittances, corporate payments, and DeFi applications.

China signals pivot: Yuan stablecoins back in play!

• Beijing is considering allowing yuan-backed stablecoins for the first time, marking a major reversal.
• Drafts propose pilots in Hong Kong and Shanghai, both of which recently introduced licensing frameworks.
• Despite the move, dollar-backed tokens dominate 99% of the $247B market, while yuan accounts for only 2.88% of payments globally.

Fed discusses stablecoins on the policy table - Fed Governor Waller stressed the need to embrace technological advances, and FOMC minutes highlighted stablecoins’ potential to improve payment efficiency and increase Treasury demand.

Fed rollback on crypto opens doors for banks - In April, the Federal Reserve withdrew prior guidance that discouraged banks from engaging in crypto and stablecoin activities.

South Korea moves on stablecoin law - South Korea’s FSC will submit a stablecoin regulation bill in October, covering issuance, collateral, and risk controls.

Hong Kong launches DAAMC for stablecoin compliance - The Digital Asset Anti-Money Laundering Center (DAAMC) will promote compliant stablecoin issuance and financial integrity in Hong Kong. Founding members include HashKey, RD Innotech etc.

UK expands sanctions to Russian crypto and stablecoins - The UK imposed sanctions on crypto exchanges, stablecoins, and a Kyrgyz bank accused of funding Russian military goods. Sanctions tied Luxembourg and Kyrgyz firms to the A7A5 ruble-backed stablecoin, which moved $9.3B in four months.

Kyrgyzstan pushes back on Western crypto sanctions - President Sadyr Japarov criticized U.S. and UK measures, saying the economy “should not be politicized.”

US re-sanctions Garantex and ruble stablecoin - The U.S. reimposed sanctions on Garantex, citing its reliance on the A7A5 ruble-backed stablecoin. Authorities said Garantex processed over $100M in illicit flows from ransomware groups and money launderers.

🔥 Biz Beats: Gemini eyes Wall Street IPO, Tether hires ex-White House Bo Hines for U.S. push, and Tether issues $1B USDT on ETH

Gemini eyes Wall Street debut as stablecoin craze heats up

• Gemini’s IPO bid follows Circle, whose stock soared from $31 at listing to nearly $299 before stabilizing around $149.
• The move comes amid regulatory shifts, with the SEC dropping most lawsuits and Trump signing the GENIUS Act.
• Other crypto players like OKX, Grayscale, and Kraken have also indicated IPO plans.

Tether doubles down on US strategy with Trump connection Bo Hines

• Tether appointed Bo Hines to lead its U.S. market entry push.
• CEO Paolo Ardoino said the hire shows Tether’s commitment to building a strong U.S. presence.
• USDT’s market cap stands at $167B, dwarfing Circle’s USDC at $68B.

Plasma’s $250M USDT yield pool sells out instantly

• Plasma’s new yield program filled its $250M cap in under an hour, distributing 100M XPL tokens (1% of supply).
• The project previously raised $373M in a public token sale and is backed by figures like Peter Thiel and Tether CEO Paolo Ardoino.
• Plasma attracted $1B in USDT deposits in June, underscoring rapid demand for its products.

Circle launches $1.3B secondary share sale - Circle, issuer of USDC, announced a 10M share secondary offering at $130 each, totaling $1.3B. Of the shares, 2M will be sold by Circle directly, with 8M offered by existing shareholders.

Akemona brings in stablecoin pioneer as CEO - Alex de Lorraine, former TrustToken exec, helped launch TrueCurrencies, which reached over $3B in market cap.

Standard Chartered secures early Hong Kong stablecoin license - Hong Kong’s Stablecoins Ordinance took effect on August 1, requiring licenses for fiat-backed issuance.

China Merchants Bank launches exchange with USDT trading - CMB International’s app now offers Bitcoin, Ethereum, and Tether (USDT) trading under Hong Kong’s new rules.

Coinbase enables stablecoin payments on Sei - Coinbase integrated Sei into its x402 protocol to support instant stablecoin payments over HTTP, meaning developers and AI agents can now embed payment logic without wallets or intermediaries.

Volkswagen Singapore accepts Bitcoin and stablecoins - Customers can now pay for cars using stablecoins via QR codes under a FOMO Pay integration.

Crypto industry pushes back on bank effort to rewrite stablecoin law - Bank groups warned the GENIUS Act could drain up to $6.6 trillion in deposits from U.S. banks.

Coinbase Base surpasses Tron in DeFi deposits - Deposits on Base surged to $6.6B, surpassing Tron, aided by Morpho’s $1B stablecoin lending integration.

Crypto groups reject bank push to amend GENIUS Act - Industry groups warned altering the law would weaken the regulatory framework already in place. Crypto advocates stressed the importance of access for underbanked consumers relying on digital wallets.

Tether issues $1B USDT on Ethereum - Tether minted $1B USDT on Ethereum on Aug 20, marking one of its largest single issuances.

💡Rollouts: MetaMask mints mUSD with Stripe, Circle rolls out Arc with Fireblocks, and Wyoming’s FRNT hits seven chains

MetaMask mints its own mUSD stablecoin with Stripe muscle

• MetaMask introduced mUSD, a dollar-pegged stablecoin integrated directly into its wallet for swaps, transfers, on-ramps, and cross-chain use, with merchant payments via MetaMask Card expected later this year.
• The token is issued using M^0’s stack and developed in collaboration with Bridge, the stablecoin infrastructure firm Stripe acquired in a $1.1B deal.
• The launch comes as the stablecoin market nears $280B, with USDT holding over 60% market share.

Circle rolls out Arc blockchain with Fireblocks onboard

• Fireblocks will support Circle’s new Arc blockchain at launch, built for “stablecoin finance.”
• Circle reported USDC supply rose 90% YoY to $61.3B, surpassing $65B in early August.
• Tether posted $5.7B in Q2 profit from earnings on its $127B Treasury holdings, underscoring competitive dynamics.

First US state-backed stablecoin FRNT rides out of Wyoming

• Wyoming launched the Frontier Stable Token (FRNT), the first U.S. state-issued fiat-pegged stablecoin.
• FRNT will be deployed across seven blockchains, including Ethereum, Solana, and Base.
• The token is overcollateralized at 102% with cash and short-term Treasurys for security.

Deribit expands USDC options settlement - Deribit will launch linear BTC and ETH options settled in USDC on Aug. 19.

BlackRock & Brevan Howard funds go live on Hedera - Tokenized funds on Hedera can serve as collateral for stablecoins or yield-bearing reserves.

BenFen mainnet upgrade targets stablecoin scaling - This upgrade for the one-click stablecoin system delivers tens of thousands TPS throughput with sub-second confirmations for high-frequency stablecoin payments.

Swarm launches tokenized equities with stablecoin settlement - Swarm now offers on-chain access to U.S. equities like Apple, Tesla, and MicroStrategy, with settlement in stablecoins.

Elliptic partners with Monerium to strengthen EURe compliance - Monerium’s EURe is the most used euro stablecoin in Europe, with over €4B transacted. Elliptic will provide automated AML screening, real-time monitoring, and cross-chain compliance tools.

Aptos & Bitso drive stablecoin payments in Latin America - Nearly 46% of all Aptos transactions now involve USD stablecoins, up 10% year-over-year; monthly stablecoin transfer volume exceeds $50B, supporting corridors like the U.S.–Mexico route for near zero-fee, instant settlements.

Coin98 adds Concordium for enterprise stablecoin PayFi - Coin98 users can now access Concordium’s PayFi ecosystem directly from the wallet, its architecture features a built-in identity layer using zero-knowledge proofs for compliance.

BDIC launches StableCover Pro insurance for stablecoins - BDIC unveiled StableCover Pro, an insurance product covering compliant stablecoin assets and offering protections such as reserve failure and redemption guarantees.

Binance to bring USDT yield on-chain with Plasma - Binance will shift its USDT yield product to Plasma’s mainnet, targeted for September. Plasma CEO Paul Faecks noted Binance’s 280M users could accelerate adoption, with yield reducing the opportunity cost of holding stables.

PoolTogether revives stablecoin prize savings - PoolTogether offers no-loss savings accounts for idle stablecoins with jackpot rewards.

💲 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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