Editor - Jackie

🌍 Macro: USDT0 hits $50B in 10 months, Interpol targets $11B scam rings, and Polymarket wins CFTC ok

$50B later, USDT0’s “monetary mesh” boasts 415k transfers and counting

• USDT0 crossed $50 billion in cumulative transfers just 10 months after launching in January 2025.
• The stablecoin has processed over 415,000 transfers across 15 networks.
• Tether’s Paolo Ardoino said USDT0 reflects an evolution toward a “monetary mesh” infrastructure for seamless user experience.

Interpol’s new priority: stop $11B scam compounds running on cheap rails

• Interpol member nations approved a formal resolution elevating scam-compound networks to a global threat category.
• The organization reported that victims are trafficked into compounds and forced to run illicit operations, including cryptocurrency-based fraud schemes.
• Crypto flows linked to these operations have exceeded $11 billion, with TRM Labs noting heavy reliance on stablecoins, low-fee chains, and fast cross-chain swaps.

Ark Invest adds Google, Coinbase, Circle and BTC ETF shares in latest accumulation - Ark Invest purchased $7 million worth of Circle shares alongside additional positions in Coinbase and nearly $2 million in ARKB ETF shares.

Polymarket approved to operate in the U.S. as stablecoin activity expands - Polymarket received CFTC approval to reenter the U.S. market.

🔍 Policies: ECB flags run risk, UK invites stablecoin pilots, and Australia closes custody gaps

Confidence breaks first? ECB warns for a stablecoin stress-path

• The ECB said a loss of confidence in redeemability is the primary vulnerability in stablecoins.
• It warned that a stablecoin run could trigger forced sales of U.S. Treasuries and disrupt market functioning.
• Standard Chartered forecast stablecoin market cap reaching $750 billion by 2026, though ECB said euro-area risks remain limited due to USD pegs.

From White House stablecoin working group to Fed buzz, Kevin Hassett rises

• Hassett played a key role in shaping U.S. stablecoin policy through the White House’s digital-asset working group.
• He disclosed holdings of at least $1 million in Coinbase stock.
• Bloomberg reported he is a leading contender for the next Federal Reserve Chair.

UK regulator invites stablecoin firms into its sandbox to help shape rules

• The FCA launched a dedicated sandbox cohort for stablecoin issuers to test products under forthcoming UK regulations.
• Officials described it as a rare opportunity for firms to influence evolving stablecoin rules, with at least one major firm already accepted.
• Several in-person policy sprints are planned for March, and applications remain open until January 18.

S&P downgrades USDT rating amid concerns about reserve composition - S&P cut USDT’s score to 5 (weak), citing bitcoin’s 5.6% share of reserves, which exceeds the 3.9% overcollateralization margin.

South Korea advances bill enabling tokenized stocks and supporting stablecoin legislation - Parliament aims to pass a bill before year-end creating a legal basis for trading tokenized securities on OTC venues. The bill is expected to accelerate subsequent laws covering stablecoins and crypto ETFs.

Australia introduces digital-assets bill to close custody gap - The legislation creates enforceable rules for businesses holding digital assets for customers, aiming to prevent failures seen in collapses like FTX and Celsius.

Ripple’s RLUSD stablecoin gains full regulatory approval in the UAE - The FSRA designated RLUSD as an Accepted Fiat-Referenced Token, making it usable by licensed firms within Abu Dhabi Global Market.

Central banks warn DeFi and tokenised MMFs could amplify global financial risks - A joint BIS and Collegio Carlo Alberto report said tokenised money-market funds may mirror and even heighten the risks long associated with stablecoins.

Japan prepares new reserve mandate for crypto exchanges - Japan plans to require crypto exchanges to maintain reserves backing their liabilities.

🔥 Biz Beats: MoonPay gains custody authority, KakaoBank spins up dev team, and Anchorage incentives incoming

NY Trust Charter acquired, a MoonPay stablecoin now has a regulatory lane

• MoonPay now holds both a BitLicense and a New York Limited Purpose Trust Charter.
• The charter grants authority to custody assets and provide OTC services under NYDFS oversight.
• The approval creates a regulatory avenue for a potential MoonPay-issued stablecoin, pending separate NYDFS approval.

KakaoBank moves its won-stablecoin initiative into full development

• KakaoBank advanced its local-currency stablecoin from planning into active development.
• The bank began hiring backend blockchain developers to support the rollout.
• The push follows the creation of a won-stablecoin task force and aligns with national priorities for digital-currency growth.

Anchorage Digital to launch rewards program for USDtb and USDe - Anchorage plans a rewards program for holders of Ethena’s USDtb and USDe tokens.

Tether expands Rumble stake with purchase of 1.06 million additional shares - Tether purchased 1,063,670 Rumble shares at roughly $5.38–$5.46 each.

💡Rollouts: KlarnaUSD goes live via Stripe’s Bridge, U.S. Bank pilots programmable stables on Stellar, and Naver pushes city wallets to scale

Monad mainnet launches with support for multiple stablecoins

• The mainnet launch follows a $269 million raise from over 85,000 participants.
• More than half of all MON supply (50.6 percent) will remain locked until at least the second half of 2026.
• USDC, USDT0, and AUSD will be supported at launch, alongside 400-millisecond transaction finality.

Klarna to roll out KlarnaUSD stablecoin via Stripe’s Bridge

• Klarna will introduce KlarnaUSD, a USD-pegged stablecoin issued through Stripe’s Bridge infrastructure.
• The stablecoin will launch on Tempo and is intended to lower cross-border payment costs, which total around $120 billion annually.
• Klarna’s CEO said crypto has reached the maturity needed for fast, scalable consumer applications.

Tether CEO rebukes S&P following USDT downgrade

• S&P said higher-risk assets in USDT’s reserves increased from 17% to 24%, with bitcoin comprising 5.6% of circulation.
• Nansen reported no meaningful outflows, indicating users still treat USDT as reliably redeemable.
• Paolo Ardoino dismissed the rating as a “traditional finance propaganda machine,” noting Tether reported $181.2 billion in assets backing $174.4 billion in liabilities.

Naver Financial to debut Busan local-stablecoin wallet - Naver will launch a wallet for Busan’s stablecoin project, enabling conversion of fiat into the regional currency Dongbaek-jeon.

U.S. Bank tests custom stablecoin issuance on Stellar - U.S. Bank began testing the issuance of programmable stablecoins on the Stellar blockchain. The bank highlighted compliance controls, including the ability to freeze or unwind transactions.

MegaETH’s USDm pre-deposit launch sees outages but fills $250 million cap in under three minutes - The deposit launch was interrupted when a third-party bridge provider went offline for nearly an hour. Despite issues, deposits hit the full $250 million cap in less than three minutes.

Justin Sun intensifies fraud accusations against First Digital Trust - Justin Sun alleged that First Digital Trust used fabricated documents to obscure transfers and warned that oversight gaps could undermine upcoming Hong Kong stablecoin licensing.

Upbit hit by $36 million Solana-token hack amid Naver acquisition - Upbit reported unauthorized withdrawals of Solana-based tokens, including multiple stablecoins, and froze $8.2 million in Solaire.

Naver and Upbit plan $7 billion AI and blockchain investment after merger - The merged companies intend to invest 10 trillion won ($6.8 billion) to build a new global framework combining AI and blockchain capabilities.

Tether to close Uruguay mining division as part of operational shift - Tether is shutting down its Uruguay mining operation and laying off 30 of its 38 employees, according to local reports.

💲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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