Editor - Jackie

🌍 Macro: Stablecoins hit $311B, Larry Fink pushes “one chain”, and USD1 doubles on Ethereum to ~$1.3B.

Stablecoin market cap hits a new peak near $311B as traders rotate into “shelter”

• Stablecoin market cap peaked at $311.332B on Jan 18, with USDT over $187B and USDC around $74B.
• There was $592.4M in liquidations in 24 hours (ETH $230M, BTC $204M) as traders moved into stablecoins during broader market weakness.
• Growth in USD1 supply on Ethereum from $660M to about $1.3B over the past month was a notable driver, while Trump said he hopes to sign a market structure bill “very soon.”

Larry Fink pitches “one common blockchain” as tokenization grows and stablecoin funding hits public markets

• Larry Fink said a single shared blockchain could reduce fees and expand “democratisation” across finance.
• The NYSE announced a tokenized securities platform featuring stablecoin-based funding and 24/7 trading, and Fink said emerging markets like Brazil and India are leading on tokenization and digitization.

Dan Tapiero says stablecoin rails are going mainstream after $33T in 2025 volume - Dan Tapiero said stablecoin rails are rapidly going mainstream as transaction volume jumped to $33 trillion in 2025, reinforcing his bullish macro view despite a near-term correction and a long-term bitcoin thesis.

Ethereum usage hits new highs as stablecoin transfers drive activity and fees fall - Ethereum activity hit record highs as stablecoin payments drove transaction growth while fees fell sharply due to EIP-4844 upgrades, with USDT transfers leading and developers cautioning against excessive protocol changes.

Ark sees a $28T crypto market by 2030 as stablecoins absorb roles once expected of BTC - Ark Invest forecast a $28 trillion crypto market by 2030, trimming its bitcoin bull case as stablecoins increasingly absorb payment and settlement roles once expected to drive BTC adoption.

Ripple CEO says regulatory wins set up a potential 2026 all-time high as RLUSD reaches $1.4B - Ripple CEO Brad Garlinghouse said U.S. regulatory wins, especially the GENIUS Act, position the market for a potential new all-time high as RLUSD grows to $1.4 billion and policy clarity beats regulatory chaos.

🔍 Policies: Bill clock ticks while Trump touts GENIUS! HK to issue first stablecoin licenses and Korea probes ~$102M laundering

Coinbase denies White House rift as stablecoin yield ban divides banks and the industry

• Brian Armstrong said White House officials have been constructive and asked Coinbase to figure out a deal with the banks, per DL News.
• The Clarity Act draft bans passive yield on stablecoin holdings, and Armstrong argued consumers should be able to earn more on their money.
• Banks have countered that stablecoin yields could reduce their ability to provide loans, and experts warned more players may expand their wish lists and increase friction.

Trump talks crypto legislation at Davos and points to Genius Act as the stablecoin framework

• President Trump said he wants the U.S. to remain the “crypto capital of the world,” per DL News.
• Trump said Congress is working hard on market structure legislation and referenced signing the Genius Act to establish a framework for regulating stablecoins.
• The SEC dropped a number of lawsuits against digital-asset firms and took a friendlier posture in 2025, alongside reports of the first family’s deeper crypto involvement amid “debanking” claims.

Hong Kong signals first stablecoin licenses in Q1 2026 after regime went live Aug. 1, 2025

• Paul Chan said the HKMA will issue the first stablecoin licenses in Q1 2026, according to Decrypt.
• The licensing regime took effect Aug. 1, 2025 and that 36 companies had applied by September 2025.
• Issuers must meet reserve, par redemption, segregation, and AML requirements to market to retail, under what Chan called a “proactive yet prudent” approach.

White House Crypto Council warns “no rules” is fantasy as stablecoin rewards stay a core fault line - The White House Crypto Council warned that rejecting imperfect crypto rules now risks harsher legislation later as stablecoin rewards, scope disputes, and enforcement capacity remain central points of contention.

Bank lobby makes stablecoin yield ban a top 2026 priority and targets open banking rules - The U.S. bank lobby made banning stablecoin yield a top 2026 priority, arguing it protects consumers and deposits while also pushing to revise open banking rules under Section 1033.

Trump says he hopes to sign a market structure bill “very soon” as stablecoin rewards become the core fault line - President Trump said he hopes to sign a crypto market structure bill very soon even as stablecoin rewards remain the main sticking point delaying bipartisan agreement.

Senate market structure bill may slip to late Feb/March as lawmakers pivot to housing priorities - The Senate market structure bill may be delayed until late February or March as lawmakers shift focus to housing policy after Coinbase withdrew support over stablecoin yield limits.

Senate Agriculture Committee publishes its crypto bill text as Banking and Ag versions head for reconciliation - The Senate Agriculture Committee released its crypto bill text, expanding CFTC authority and setting up reconciliation talks as banks continue to dispute stablecoin yield treatment.

DOJ alleges $1B laundering operation relied on USDT on Tron, with claims of $700M monthly throughput - The DOJ alleged a $1 billion crypto laundering scheme relied heavily on USDT on Tron, with prosecutors claiming the suspect could move hundreds of millions monthly through fast, complex transactions.

Thailand moves toward crypto ETF and futures rules while the central bank watches USDT “grey money” flows - Thailand advanced plans for crypto ETFs and futures rules while its central bank continues monitoring USDT-linked “grey money” and cross-border flow risks.

Russia’s Constitutional Court recognizes crypto property rights in ruling tied to a 1,000 USDT loan - Russia’s Constitutional Court affirmed crypto holders’ property rights, setting a precedent after overturning lower-court rulings tied to a 1,000 USDT loan dispute.

South Korea probes a ~$102M cross-border crypto laundering case as USDT shows up in prior FX probes - South Korean authorities are probing a roughly $102 million crypto laundering case involving cross-border flows, with USDT repeatedly appearing in prior foreign-exchange investigations.

Elliptic says Iran’s central bank acquired $507M in USDT as Tether highlights $3.8B in freezes - Elliptic reported Iran’s central bank accumulated at least $507 million in USDT, while Tether emphasized it has frozen over $3.8 billion tied to illicit activity.

🔥 Biz Beats: Binance PayID comeback in Australia, $5M stablecoin pool Makina fiasco, and TRON lands in MetaMask

Bermuda pitches a “fully on-chain national economy” with help from Coinbase and Circle

• Early steps of this plan include government stablecoin payment pilots and tokenization efforts by financial institutions.
• Premier E. David Burt said the goal is the world’s first fully on-chain national economy to cut costs and expand access, while Brian Armstrong said clear rules plus public-private collaboration can empower local businesses and consumers.
• Decrypt said Bermuda previously enabled tax payments in USDC (2019), tested a local stablecoin (2020), and passed DABA in 2018, with context of ~73,000 population and about $6.8B real GDP in 2024.

Binance reopens PayID and bank transfers in Australia, restoring key fiat rails

• Binance Australia restored PayID and bank transfers after more than two years of disruption.
• The change brings Binance closer to competitors that retained PayID access, and an exec argued access to traditional rails shapes participation, confidence, and trust.
• Bolt Financial Group is supporting the rails, with a phased rollout to meet banking and regulatory expectations.

NYSE plans tokenized securities platform with stablecoin funding, 24/7 trading, and instant settlement - The NYSE plans to launch a tokenized securities trading platform with stablecoin funding, instant settlement, and 24/7 access, as partners work on tokenized deposits and the industry eyes massive long-term growth despite liquidity and fragmentation challenges.

Interactive Brokers adds 24/7 USDC funding and plans RLUSD and PYUSD support next - Interactive Brokers enabled 24/7 USDC funding with near-instant trading access via multi-chain deposits and said support for RLUSD and PYUSD could follow as soon as next week.

Armstrong heads to Davos to negotiate “win-win” terms with banks after Coinbase pulled support - Coinbase CEO Brian Armstrong traveled to Davos to seek a “win-win” compromise with banks after withdrawing support for a Senate draft that would ban interest on idle stablecoin balances.

WalletConnect adds TRON connectivity to expand stablecoin payments reach across wallets and apps - WalletConnect expanded stablecoin payment reach by integrating TRON connectivity, linking hundreds of wallets and thousands of apps to a network that processed trillions in USDT transfers.

Makina Finance hit by ~$5M stablecoin pool exploit after a 280M USDC flash loan - Makina Finance suffered a roughly $5 million stablecoin pool exploit after attackers used a 280M USDC flash loan to manipulate pricing, prompting warnings for affected liquidity providers.

Venezuela’s USDT premium spike fades as P2P prices fall 40% from January highs - Venezuela’s USDT P2P prices fell about 40% from January highs after extreme premiums driven by shallow liquidity eased and temporary exchange controls cooled volatility.

💡Rollouts: RLUSD goes prime time on Binance while Noble pivots to a stablecoin/FX chain to court institutional flows

Binance lists Ripple’s RLUSD with USDT and XRP pairs, with XRP Ledger support coming next

• Binance listed RLUSD on Jan 22 at 08:00 UTC with Ethereum support, and XRP Ledger support is expected later.
• Trading include RLUSD/USDT and XRP/RLUSD, and Binance expects RLUSD to be eligible for portfolio margin and later added to Binance Earn.

Noble to sunset its Cosmos appchain and launch an EVM-based Layer 1 aimed at stablecoin and FX infrastructure - Noble will sunset its Cosmos appchain and launch an EVM-based Layer 1 network.

💲Money in motion: Justin Sun invests $8M in River Protocol as leverage signals spike during a token rally

• Justin Sun invested $8M in River Protocol, which is building cross-chain stablecoin infrastructure including satUSD.
• River will use funds to support stablecoin pools with USDT/USDD on SUN, lending on JustLend, and WinkLink price feeds, while planning Smart Vault and Prime Vault yield strategies.
• RIVER rose 24% to $48.74 with about a $900M market cap and 19.6M circulating supply, while CoinGlass said futures volume exceeded spot by more than 80x and flagged funding-driven liquidation dynamics.

👋 That’s your stablecoin scoop for the week!

Until next time — AllScale Weekly

👉 Learn how AllScale can help your team pay, invoice, and scale globally

‍