Editor - Jackie

🌍 Macro: $1.4B January VC funding, Base drives ~$3T Q4 stablecoin volume, and SoFi hits $1B revenue

January VC crypto funding hits $1.4B as investors crowd into U.S. stables and payments plays

• VCs put $1.4B into crypto companies in January, based on DefiLlama data.
• It described a “bigger bets, fewer deals” dynamic, with funding events dropping to 60 from 85 while total funding was 14% higher than January 2025.
• The piece said clearer U.S. regulation is pulling capital stateside, with notable investment activity in stablecoin companies, cards/payments, and infrastructure, and it highlighted rounds including Rain ($250M), BitGo ($212.8M), and LMAX Group ($150M).

Ark Invest: Stablecoin growth stalls after October shock as Base leads transaction volume

• ARK said stablecoin supply crossed $300B but has largely flatlined since October’s “flash crash,” with USDe down about 58% from its $14.3B peak.
• Coinbase’s Base led in Q4 stablecoin transaction volume at roughly $3T, up 121% quarter-over-quarter, surpassing Ethereum and Tron.
• USDC accounted for over 60% of adjusted transaction volume despite about 25% of supply, implying ~$88 volume-to-supply versus PYUSD at ~$22 (with PYUSD also showing 2.5x velocity growth).

SoFi posts first $1 billion revenue quarter as profit reaches $174 million in Q4 amid crypto expansion

• SoFi reported a GAAP net revenue milestone of $1.0B (+40% YoY) and net income of $173.5M, adding 1.027M new members to reach 13.7M total.
• The company said it became the first nationally chartered bank to launch consumer crypto trading and issue its SoFiUSD stablecoin.
• It also expanded blockchain remittances to 30+ countries via Lightning/UMA by converting USD → BTC → local currency, and guided to 2026 membership growth of at least 30% with adjusted revenue of about $4.66B and adjusted net income around $825M.

Stablecoin outflows point to capital exiting as bitcoin chops sideways - A ~$2.24B drop in top stablecoin market cap suggests investors cashing outflows to fiat as BTC slid to ~$88.4K and OI stayed rangebound.

Crypto crime hit a new high in 2025, with one Russian stablecoin dominating illicit flows - TRM says illicit crypto hit $158B in 2025 (+145% YoY), with stablecoins driving 95% of sanctioned flows and A7A5 tied to 77% (>$72B) of illicit stablecoin activity.

River token’s 1,900% surge spotlights a chain-agnostic stablecoin pitch - River surged ~1,900% to ~$82 on a stablecoin “abstraction” pitch to avoid bridging, alongside cited $8M Justin Sun/Tron integration.

Standard Chartered warns stablecoins could siphon deposits from U.S. banks - Standard Chartered warns ~$500B could shift into stablecoins by 2028, with yield potentially speeding bank deposits flight and compressing NIM.

🔍 Policies: UAE greenlights USDU, Trump taps crypo-friendly Kevin Warsh for fed chair, and HK targets Q1 ’26 licenses

UAE’s central bank has approved a USD-backed stablecoin

• The UAE central bank (CBUAE) approved the USDU stablecoin under its Payment Token Services Regulation, with issuance by Universal Digital (regulated by FSRA/ADGM).
• The structure states reserves are held 1:1 in safeguarded onshore accounts at Emirates NBD and Mashreq, with Mbank also involved.
• Aquanow was appointed as global distribution partner for institutional access outside the UAE where permitted, and the announcement framed the UAE as ahead of the U.S., EU, and much of Asia for a central-bank-regulated USD stablecoin.

Wall Street firms meet the SEC crypto task force for DeFi and tokenized trading discussions

• SEC records cited in the article said representatives from JPMorgan, Citadel, and SIFMA met with the SEC’s crypto task force.
• SIFMA argued regulation should hinge on economic characteristics rather than the technology label (including “DeFi”).
• SIFMA warned broad exemptions for tokenized trading could weaken investor protection and cause market disruptions, and the article referenced October’s crypto “flash crash” and an ongoing fight over stablecoin rewards in a market structure bill.

Trump names crypto-friendly Kevin Warsh as pick for Fed chair

• President Trump nominated Kevin Warsh to be Fed Chair, and prediction markets reportedly moved to ~95%–96% odds ahead of the announcement.
• Warsh has said Bitcoin “doesn’t trouble” him and called it an “important asset,” while also arguing it is not a substitute for the dollar.
• He has crypto ties through an early investment in Basis (an algorithmic stablecoin) and advisory/investor roles with Bitwise, alongside a policy profile as a hawk critical of QE.

Laser Digital pursues a U.S. trust charter as crypto firms move onshore - Backed by Nomura, Laser Digital applied for a national trust bank Office of the Comptroller of the Currency charter to operate nationwide as issuers/custodians seek a single structure for issuance, settlement, and safeguarding.

Russia bans WhiteBIT and flags stablecoins in sanctions enforcement - Russia branded WhiteBIT “undesirable,” alleging illicit “gray scheme” activity and citing billions in stablecoin flows tied to suspected sanctions evasion despite the exchange’s stated AML restrictions.

India faces pressure to soften crypto taxes as trading shifts offshore - A report cited ~three-quarters of Indian crypto volume moving offshore (~$6.1B), fueling calls to cut TDS, allow loss set-offs, and modernize rules ahead of the Union Budget.

U.S. sentencing spotlights stablecoin laundering path in a $37M scam - A Chinese national was sentenced to 46 months and ordered to pay $26.8M+ restitution after prosecutors said scam proceeds were converted into stablecoins, amid claims last year’s scam losses topped $17B and impersonation surged with AI.

JPMorgan Chase hit with a reported $5B debanking suit tied to stablecoin-era politics - The suit alleges debanking for political reasons, with Donald Trump Jr. linking the family’s crypto move to being cut off while World Liberty pitched crypto rails and JPMorgan called it meritless.

Senate Agriculture advances a market-structure bill as Michael Bennet conflict push fails - The committee advanced the bill 12–11 on party lines, expanding Commodity Futures Trading Commission oversight with DeFi-friendly provisions, while a conflicts amendment failed and the 60-vote path remains unclear.

Japan opens consultation on which bonds can back stablecoin reserves - Japan’s Financial Services Agency proposed tight eligibility for reserve-qualifying bonds and tougher disclosures, including constraints for foreign stablecoin applicants operating in Japan.

Hong Kong plans first stablecoin license batch in Q1 under strict rules - Finance chief Paul Chan said the first issuer licenses will arrive in Q1 under a 2025 regime with strict reserve/redemption standards as Hong Kong builds a broader tokenized-asset ecosystem.

South Korea moves to cap exchange ownership as won-stablecoin rules take shape - Regulators proposed a 15%–20% shareholder cap to curb conflicts at exchanges framed as “public infrastructure,” alongside a draft law focused on won-denominated stablecoin issuance.

United Kingdom targets 2027 for major crypto laws as Bank of England consults on stablecoins - Minister Lucy Rigby set an Oct. 25, 2027 deadline for a broad regime under the Financial Conduct Authority while the Bank of England consults on stablecoin rules aimed for completion by year-end.

🔥 Biz Beats: Mizuho ups Circle to $77 target, Laser Digital pursues OCC charter, and  Polymarket settlement could add “billions” to supply

Morgan Stanley taps veteran Amy Oldenburg to lead digital asset strategy amid crypto push

• Morgan Stanley appointed Amy Oldenburg to lead digital asset strategy as it prepares for wider stablecoin adoption and potential new U.S. legislation.
• The bank has filed to list spot bitcoin and Solana ETFs and is planning a proprietary digital wallet this year.
• It is also hiring across digital assets, including roles focused on portfolio enablement/governance and advisory compliance.

Mizuho upgrades Circle shares outlook citing Polymarket’s use of USDC for settlement

• Mizuho upgraded Circle (CRCL) to neutral and raised its price target to $77, arguing Polymarket’s USDC-based settlement can act as a direct USDC demand engine.
• The note highlighted that USDC supply doubled from about $30B in early 2024 to over $60B by March 2025, and was around $75B toward end-2025.
• With U.S. access restored, the analysts suggested Polymarket could drive “billions” of incremental USDC market cap over the next 1–2 years.

Gold hits highs as Tether’s XAUT grows faster than USDT - Tether said XAUT supply rose 38% to 375,000 tokens by Dec. 31 and cited ~$882M of Q4 sales, positioning XAUT as a hedge as monetary confidence weakens while noting attestations aren’t full audits.

Card networks shrug off stablecoins as a default way to pay - Visa and Mastercard CEOs say stablecoins lack U.S. everyday PMF versus bank-linked digital dollars, even as Glassnode estimates 2025 BTC settlement topped $25T and SoFi pushes a faster crypto-bank blend.

PayPal survey says big merchants are leading crypto payments uptake - PayPal found ~40% of merchants already accept crypto and adoption skews to $500M+ revenue firms, with interest high but understanding still a key blocker.

Binance to rotate $1B SAFU reserves into BTC during the selloff - Binance will convert $1B of SAFU stablecoin reserves into bitcoin over 30 days and top back up to $1B if it falls below $800M, as BTC slid to ~$82K and liquidations hit ~$1.7B.

Laser Digital moves toward an OCC trust bank as institutions chase regulated rails - Laser Digital filed to form a national trust bank with the Office of the Comptroller of the Currency to offer custody and spot trading, framing charters as more attractive in a GENIUS Act backdrop.

USD1 tops $5B as World Liberty seeks a trust charter and scrutiny rises - USD1 crossed $5B in market cap (per CoinGecko) as World Liberty Financial reportedly pursued an OCC trust charter, while TRUMP fell ~93% and Elizabeth Warren scrutiny referenced PancakeSwap activity.

💡Rollouts: Fidelity preps an Ethereum stablecoin and Tether launches USAT under Anchorage oversight

Fidelity readies an Ethereum-based “digital dollar” stablecoin

• Fidelity’s “Fidelity Digital Dollar” (FIDD) is planned to run on Ethereum.
• The release said it will be available to retail and institutional investors in the coming weeks.
• Fidelity said it will be fully backed by U.S. dollars and high-quality cash equivalents, and the article cited stablecoin market cap growth to about $311B.

Tether launches USAT, a U.S.-regulated stablecoin issued by Anchorage Digital

• Tether said USAT is now available for trading and will be issued by Anchorage Digital.
• The article stated Anchorage’s setup places USAT under OCC oversight and referenced reserve expectations that issuers back stablecoins primarily with cash and U.S. Treasuries.
• Tether positioned USAT as meeting institutional needs while its larger stablecoin is progressing toward GENIUS Act compliance, and Anchorage framed the product as stablecoin issuance inside the U.S. banking system under real supervision.

USAT signals Tether’s US push against Circle - USAT formally enters the U.S. as a federally aligned dollar token, positioning it as a direct competitor to USDC amid expectations of rapid stablecoin growth.

Paolo Ardoino says issuer adds 1–2 tons of gold weekly - Vault holdings are described at ~140 tons (~$24B) stored in a former nuclear bunker, with precious metals around ~$12.9B (~7%) of reserves.

Bitwise launches a Morpho vault aiming ~6% on USDC - Strategy targets up to ~6% by allocating into over-collateralized lending, with vault AUM having surged in 2025 before cooling after October volatility.

WisdomTree brings tokenized fund lineup to Solana - Expansion adds stablecoin conversion rails and cites ~$772M deployed across chains versus ~$1.3B of onchain RWAs on Solana.

Amboss launches Lightning-native RailsX for BTC-stablecoin swaps - RailsX enables peer-to-peer atomic swaps via payment channels and highlights Lightning USD capacity topping $500M with BTC capacity around 5,770 BTC.

OKX rolls out a Mastercard-linked crypto card in Europe - Card lets users spend stablecoins from self-custody with conversion at checkout (0.4% spread), no added fees, and limited-time rewards.

Fairshake reports a $193M midterm war chest - Funds total $193M cash on hand, after prior cycle spending of ~$40M on key races, as stablecoin policy talks continue in Washington.

Coinbase expands Kalshi markets nationwide with USDC rails - Rollout opens prediction markets to users in all 50 states, allowing trades in USD or USDC with near-24/7 availability aside from a weekly two-hour maintenance window.

Bybit teases “My Bank” with IBAN accounts for faster on-ramps - MyBank is slated for February and would give users an IBAN for fiat deposits from accounts in their own name, targeting smoother fiat-to-crypto transfers.

MegaETH targets Feb. 9 launch with USDm from Ethena backed by BlackRock fund - Launch claims ~100,000 TPS and millisecond responsiveness, following an oversubscribed token sale where 11,534 wallets pledged $300M for $50M of supply.

💲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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