The Stable Scoop: Project Crypto, HK Gates Swing Open, & VCs Splash $430M+

Editor - Jackie

🌍 EU sovereignty at risk, BTC premium dips below zero

Dollar Domination? ECB worries of EU sovereignty erosion by U.S. stablecoins

• Widespread use of USD-backed stablecoins in Europe may "damage the European Central Bank's control over monetary conditions," says ECB adviser Jürgen Schaaf.
• Currently, dollar-backed stablecoins dominate with $267.8B vs. €487M for euro tokens; Circle’s EURC leads.

Premium Pressure: Coinbase’s 60-day streak break - BTC’s Coinbase premium flips negative for the first time since may, hinting at a weakening demand from U.S. investors and potential price pullback.

Not every brand can launch a stablecoin - Core VC’s David Roos predicts that only a dozen or so massive organizations  will be able launch stablecoins.

🔥Senate unveils Project Crypto, HK opens stablecoin licensing

Project Crypto: The SEC rethinks digital assets

• SEC Chair Paul Atkins unveiled an agency-wide shift to “open a formal rulemaking process for crypto,” replacing the SEC’s former enforcement-first approach.
• The SEC aims to define clear asset categories — including securities, commodities, stablecoins, and utility tokens — and may introduce unified exchange licensing.

HK opens the stablecoin gate, but don’t expect mass approvals

• The Hong Kong Monetary Authority (HKMA)’s stablecoin licensing regime took effect Friday, with only 10 approvals expected from over 40 applicants.
• HKMA deputy CEO Darryl Chan states that firms have three months to apply and licenses will start being issued beginning early next year.
• The document contains strict AML requirements such as issuers needing to verify the identity of every single stablecoin holder “even if the holder has no customer relationship with the licensee”.

One market, two visions: South Korea’s split on stablecoin rules - South Korea’s ruling and opposition parties filed dueling stablecoin bills; the Democratic Party’s bill bans interest payments, the ruling People Power Party’s doesn’t.

White House Talks Crypto, Skips Bitcoin - The White House Working Group on Digital Asset Markets released a 160-page report outlining recommendations on stablecoin regulation and related matters.

UK joins the retail crypto club - The FCA will allow retail access to crypto exchange-traded notes (cETNs) starting Oct. 8, aligning with U.S. and Canada. These cETNs will exclude underlying asset ownership and carry no FSCS protection.

💡PayPal launches PYUSD payouts, Coinbase nets $170M and Tether Q2 profit soars

PayPal ramps up stablecoin payment with PYUSD

• Paypal has unveiled crypto acceptances for small businesses, they will be receiving funds in the Paxos-managed PYUSD stablecoin.
• Merchants enjoy near-instant access to funds, 0.99% launch-year fees, and 4–5% yield on PYUSD holdings — but PYUSD is not FDIC/SIPC insured.

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COIN bags $170M from reserves alone last quarter

• Coinbase earned $300M in distribution payments from Circle in Q1, with $13B in USDC balances generating $125M at 20–25% margins.
• Through the Circle Reserve Fund, Coinbase also earned $170M at nearly 100% margin, per JPMorgan.

Tether’s Q2: $4.9B up, $163B out, and still mostly offshore

• Tether posted $4.9B in net profit, issued $13.4B USDT, and grew total supply to $163B, compared to USDC’s $64B.
• Tether now holds over $127B in U.S. Treasuries and nearly $9B in Bitcoin, making it one of the largest holders of U.S. government debt.

Aave + MetaMask = Yield for the masses - MetaMask now lets 100M+ users earn passive income on USDC, USDT, and DAI using Aave (the self-acclaimed largest DeFi lending protocol), without needing to leave the wallet.

Kyrgyzstan emerges as a backdoor for Russian crypto - Russian-backed tokens like A7A5 are allegedly being used in Kyrgyzstan to move large amount of rubles into crypto for sanctions evasion.

Stablecoins dominate DeFi, but not without risk - Stablecoins now drive more on-chain transactions daily than the next 20 largest crypto assets combined. Protocols like InfiniFi offer up to 59% APR on USDC, with past promos reaching 99%.

Euler DAO eyes 414% revenue boost via fees - Euler plans to add a 10% fee to Prime stablecoin vaults, potentially raising annual DAO revenue from $714K to $3.6M+. Early votes show 100% support for the proposal.

Visa’s stablecoin side hustle hits $200M - Visa has processed over $200M in stablecoin settlements, a small amount but also a sign of growing adoption. The company has also partnered with Bridge and BVNK to offer stablecoin payment services in Latin America.

Alchemy slashes stablecoin latency by 66% - Alchemy’s new ‘Cortex Engine’ system cuts average response times for crypto transactions from 300–400ms to under 50ms, delivering “instant-feel” experiences for users. The 1000x throughout upgrade sets the stage for Nasdaq-scale crypto payments.

Visa expands stablecoin settlement to 4 chains, 4 tokens - In terms of tokens, Visa has added PayPal USD, Global Dollar (USDG), and EURC (by Circle) to its services. Visa’s blockchain stack has expanded to Stellar, Avalanche, Ethereum and Solana.

USDT-to-Cash ATMs arrive in Korea, but only for tourists -  Korea’s blockchain firm DaWinKS and Kaia built crypto kiosks allow foreign passport holders to convert Kaia-issued USDT to fiat in 85 currencies or top up transit cards.

Chase to USDC? Retail stablecoin adoption gets a boost - Starting 2026, more than 80 million Chase customers can redeem rewards points for Circle’s USDC on Coinbase’s Base network.

🎯Wyoming eyes 1st U.S. state stablecoin launch, Binance debuts RWUSD

First in the U.S.? Wyoming’s WYST stablecoin nears launch

• Wyoming could soon become the first U.S. state to issue a stablecoin, backed by U.S. Treasuries.
• Officials are confident WYST can offer yield-bearing potential, with proceeds aimed at funding Wyoming’s school system.
• With real-time payment testing on Avalanche, the state emphasizes constitutional protections and its independent regulatory power.

Binance Debuts RWUSD: Yield Product Tied to USDC, USDT”

• Binance unveiled RWUSD, a product that lets users earn yield on stablecoins like USDC and USDT, with APRs up to 4.2% for 30 days.
• Income is derived from Binance’s ecosystem, including tokenized real-world assets like U.S. Treasuries.

IBKR pushes further into stablecoins - The brokerage giant Interactive Brokers is considering a customer-facing stablecoin to enable 24/7 asset transfers. The company may also integrate third-party stablecoins, depending on issuer credibility.

Bank of Korea: Bye CBDC, hi stablecoins - The Bank of Korea has formed a virtual asset division and renamed its research unit, focusing on won-based stablecoins. President Lee supports stablecoins to curb capital flight, while the central bank paused its Central Bank Digital Currency (CBDC) plans.

💲 Money in motion: This week's hottest stablecoin industry financing rounds!

👋 That's your stablecoin scoop for the week.

Until next time — AllScale Weekly

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