Tether's Ambitions and the Last Mile of AI Payments
Author: Cobo
Global payments are undergoing a transformation, with stablecoins at the heart of this revolution. They are not only reshaping cross-border transactions but also redefining the future of payments.
Cobo is at the forefront of this transformation, dedicated to building the next generation of stablecoin payment solutions, encompassing a full-stack stablecoin infrastructure that includes wallet infrastructure, risk control compliance, and yield-generating financial solutions.
By choosing Cobo, entrepreneurs can focus on product innovation and user growth, quickly tapping into the wave of stablecoin financial innovation.
Welcome to Stablecoin Weekly No. 6, where two main themes are particularly noteworthy:
First, the fierce competition among giants like Tether, Stripe, and Visa in emerging markets has begun, igniting a battle over the circulation and application of the "digital dollar" payment technology stack.
Second, the autonomous trading capabilities of AI are pressuring the innovation of payment infrastructure, and stablecoins, with their permissionless, high-frequency, low-value characteristics, have unexpectedly become the preferred track for AI-native payments. From Visa and Mastercard's "Intelligent Commerce" and "Agent Payments" to Coinbase's x402 protocol, and Stripe's comprehensive AI payment infrastructure set to launch in 2025 (including payment base models, Dashboard AI agents, and programmable financial tools), all point to the same future: programmable payments and stablecoins will be the last mile for AI to complete the commercial loop.
A bridge tailored for AI is being built between traditional finance and on-chain payments. The future of payments is being shaped by both stablecoins and AI.
Market Overview and Growth Highlights
The total market capitalization of stablecoins has reached $242.694 billion, with a week-on-week increase of $2.35 billion. In terms of market structure, USDT continues to dominate, accounting for 61.73%; USDC ranks second with a market cap of $61.76 billion, accounting for 25.47%.
Growth Highlights
The top 3 fastest-growing stablecoins of the week:
World Liberty Financial USD (USD1): Growth of $1.4 billion (+193%)
BlackRock USD (BUIDL): Growth of $332.2 million (+13.14%)
Ondo US Dollar Yield (USDY): Growth of $43.95 million (+7.36%)
Blockchain Network Distribution
Top three networks by stablecoin market cap:
Ethereum: $124.48 billion
Tron: $71.95 billion
Solana: $13.08 billion
Top 3 fastest-growing networks of the week:
BSC: +17.72% (USDT accounts for 55.99%)
Sonic: +11.11% (USDC accounts for 81.47%)
Optimism: +8.41% (USDC accounts for 41.80%)
Data from defillama
Focus Observations
🎯 The Real Battlefield for Stablecoins is Not in Silicon Valley
Tether made $14 billion last year — more than Pfizer, Tesla, and BlackRock combined. Even more surprising is that it did so with almost no advertising, relying instead on a product that people often overlook: the stablecoin USDT. The circulation of USDT has reached $147 billion, making it the most widely used stablecoin globally, far ahead of its competitors.
Behind Tether's success is a minimalist and efficient "dollar distribution logic" innovation. By issuing USDT and investing cash in U.S. Treasury bonds, Tether has not only become the seventh-largest holder of U.S. debt but has also promoted the circulation of the "digital dollar" globally. Especially in countries like Argentina, Turkey, and Nigeria, where local currencies have depreciated significantly, USDT has become the preferred channel to bypass local financial systems and achieve dollar asset allocation.
However, Tether's ambitions go far beyond stablecoins. As the issuer of the most widely used stablecoin USDT, Tether recently launched Tether.AI, a decentralized AI network that natively supports USDT and Bitcoin payments. Additionally, Tether has ventured into P2P communication platforms (Keet), asset tokenization platforms (Hadron), and even brain-computer interface infrastructure. Tether is betting on the fundamental needs of future global decentralized digital services, especially in regions where traditional financial systems are weak.
However, this "cake" is not solely for Tether. Stripe is testing stablecoin payment products, focusing on markets outside the U.S., U.K., and Europe. By acquiring Bridge, Stripe has gained core capabilities for cross-border payments, targeting the urgent demand in emerging markets for efficient, low-cost payment methods.
Meanwhile, Visa has partnered with Bridge to launch stablecoin-supported payment cards in six Latin American countries, including Argentina, Colombia, and Peru. Users can spend their holdings while merchants can settle in local currency, removing the last barrier to "normalizing cryptocurrency payments" and allowing stablecoins to truly integrate into everyday payment scenarios.
Stablecoins are rapidly becoming a practical financial tool in emerging markets. The competition surrounding this technology stack in payments has only just begun.
🎯 Payments are the Last Piece of the AI Puzzle; Stablecoins are the Last Mile
Why are payment networks worth billions of dollars frantically rebuilding infrastructure to serve AI agents rather than humans? Because money is about to complete transactions without human involvement.
AI can already browse the web, write emails, and even negotiate car purchases for you, but it cannot make payments without direct human intervention. This limitation is stifling the potential of autonomous AI, and solving this issue is the end game for tech giants vying for the consumer loop.
Visa's "Intelligent Commerce" and Mastercard's "Agent Pay" are not just marketing gimmicks; they represent a fundamental restructuring of financial infrastructure, allowing algorithms to participate directly in commercial activities. OpenAI, Amazon, and Perplexity are attempting to move AI from "recommendation" to "execution," gradually establishing the consumer loop.
Interestingly, stablecoins were not designed for AI, but their characteristics unexpectedly align with AI needs. This makes cryptocurrencies the best track for AI-native payments — cryptocurrencies, due to their permissionless, high-frequency, low-value, and automated trading characteristics, have unexpectedly become the "native track" for AI payments. Coinbase's x402 protocol takes it a step further by transforming HTTP status codes (like "402 Payment Required") into payment interfaces, allowing AI to purchase API services on demand with stablecoins, enabling funds to flow as freely as data.
Stripe has chosen to "AI-ify" the entire financial stack, launching payment base models, Dashboard AI agents, and programmable financial tools, while also bridging traditional finance and on-chain payments through the acquisition of Bridge and collaboration with Ramp.
Payments are becoming the key piece to unleash AI's potential. And stablecoins are the core part of this puzzle.
New Product Dispatch
👀 Coinbase launches x402 protocol, rebooting HTTP payments and empowering AI autonomous payments
Key Highlights
Coinbase has launched the open-source payment protocol x402, transforming the HTTP "402 Payment Required" status code into a real payment layer, allowing AI or clients to automatically pay API request fees using stablecoins like USDC.
x402 supports a pay-per-use model, replacing traditional API keys and subscriptions, lowering the entry barrier, and enabling AI agents to access external contexts, content, and services with less friction.
Content creators, API, and context service providers can achieve a new type of on-chain business model through x402, with no intermediaries, no chargebacks, and real-time settlement. Coinbase also offers x402 Facilitator services to support compliance and integration.
Why It Matters
- x402 realizes native payment interactions at the internet layer for the first time, potentially becoming the infrastructure for "payment as access" in the AI economy.
👀 Mastercard Launches Agent Pay, Payments Begin to Have "Intent"
Key Highlights
Mastercard officially launched Agent Pay, marking the entry of payments into the AI agent era. In the past, we would click "confirm payment"; in the future, wallets will "pay for you" at the right moment—payments shift from being initiated by humans to being executed by intelligent agents.
The core mechanism is "Agentic Tokens," which essentially grant identity, authority, and traceability to each authorized transaction, ensuring security and control. Processors like Braintree and Checkout.com have already integrated, and businesses can automatically complete procurement and cross-border payment processes through IBM Watson.
This signifies a fundamental shift in payment systems: from passive tools to active agents, from backend infrastructure to frontend decision executors. Payments are gaining "intent"—wallets will "know" when to pay, rather than waiting for human confirmation.
This architecture that integrates "programmed currency + AI logic" is the ideal vehicle for on-chain payments—AI-driven decision logic that is verifiable and settleable on-chain.
👀 Visa and Bridge Partner to Launch Stablecoin-Supported Payment Cards, First Rollout in Six Countries
Key Highlights
Visa has reached a strategic partnership with blockchain payment company Bridge to launch Visa card products that allow developers to offer stablecoin support.
This service will first launch in six Latin American countries: Argentina, Colombia, Ecuador, Mexico, Peru, and Chile, allowing consumers to use stablecoin assets for everyday payments.
Merchants can choose to settle in local fiat currency, simplifying the process of accepting crypto payments while maintaining traditional payment methods.
Why It Matters
- This partnership marks an acceleration in the integration of stablecoins with traditional payment infrastructure. Visa's further embrace of crypto payments shows that mainstream payment giants are actively positioning themselves in the digital asset space, particularly focusing on the application scenarios of stablecoins in emerging markets.
👀 Playtron Launches Game Dollar Programmable Stablecoin to Support SuiPlay Handheld Console
Key Highlights
Game operating system developer Playtron, in collaboration with M0 and Bridge, announced the launch of Game Dollar, a programmable stablecoin designed specifically for the gaming ecosystem.
This stablecoin will be used for in-game purchases, subscription services, and reward systems, and is expected to become the payment infrastructure for the upcoming SuiPlay handheld gaming console.
This collaboration integrates stablecoin technology with gaming platforms, aiming to create a seamless payment experience for the gaming ecosystem, bridging the gap between gaming and finance.
Why It Matters
- Game Dollar represents an innovative application of stablecoins in specific scenarios. The gaming industry is an important area for the implementation of Web3, and dedicated stablecoins are expected to transform in-game economic systems and accelerate the mainstreaming of blockchain gaming.
👀 Januar Launches USD Account: Opening New Channels for Crypto Enterprises to Access Traditional Finance
Key Highlights
Januar's USD account service adopts a "reverse strategy"—unlike most projects that migrate from dollars to crypto tracks, Januar provides a bridge for crypto enterprises to enter the traditional dollar payment system.
This service allows native crypto enterprises to obtain named dedicated USD SWIFT accounts, enabling them to participate directly in the global banking system with a compliant identity, addressing the legitimacy challenges of connecting with traditional financial institutions.
Januar positions itself as an intermediary layer between crypto and traditional finance, allowing crypto enterprises to handle fiat transactions through regulated channels while maintaining their digital asset business, avoiding exclusion from the banking system due to regulatory issues.
Why It Matters
- This service addresses the challenges crypto enterprises face in obtaining compliant banking services, reflecting a new trend of integration between crypto and traditional finance, providing more comprehensive financial infrastructure support for digital asset enterprises.
👀 USDT Issuer Enters AI Space, Tether.AI to Support Crypto Payments
Key Highlights
Tether, the issuer of the world's largest stablecoin USDT, is officially entering the $25 billion crypto AI space, with CEO Paolo Ardoino announcing the launch of the Tether.AI platform.
The platform is described as a fully open-source AI operating environment with no central point of failure, natively supporting USDT and Bitcoin payment functions, and integrating the P2P chat platform Keet.
Tether.AI plans to establish a censorship-resistant peer-to-peer network composed of billions of AI Agents, but specific technical details and launch timelines for the project have not yet been disclosed.
Why It Matters
- As a stablecoin issuer with a market cap exceeding $100 billion, Tether's entry into the AI space will provide new infrastructure for the integration of crypto and artificial intelligence, potentially promoting deep integration between AI and crypto payment systems.
👀 BitGo Launches Stablecoin-as-a-Service Solution, Providing One-Stop Issuance Support for Institutions
Key Highlights
Digital asset custodian BitGo has launched a "Stablecoin-as-a-Service" platform, integrating secure custody, reserve management, compliance, and tokenization functions.
This service is designed for financial institutions, fintech companies, and government agencies, supporting them in issuing fully 1:1 asset-backed compliant transparent stablecoins.
BitGo emphasizes that stablecoins are transforming the financial industry, but building a secure and scalable stablecoin system is complex; its comprehensive service aims to lower the entry barriers.
Why It Matters
- As the application scenarios for stablecoins expand, BitGo's one-stop service will reduce the technical and compliance barriers for traditional institutions to issue stablecoins, potentially accelerating the launch of more institutional-grade stablecoin projects and promoting the penetration of stablecoins from the crypto space into mainstream finance.
👀 Rain Joins Visa's Stablecoin Settlement Pilot Program, Supporting USDC for 24/7 Cross-Border Transactions
Key Highlights
Stablecoin payment card issuer Rain announced its participation in Visa's Stablecoin Settlement Pilot Program, fully tokenizing its Visa card and converting it to USDC settlement.
This enables Rain to settle with Visa 7 days a week, 365 days a year, breaking through traditional banking time constraints, improving capital efficiency, and reducing collateral requirements.
Rain provides backend infrastructure for fintech companies and digital wallets, helping partners build and launch card projects associated with stablecoins to meet global real-time payment needs.
Why It Matters
- Visa's continued expansion of its stablecoin settlement network signifies an acceleration in the integration of mainstream payment infrastructure with blockchain technology. The ability to settle cross-border transactions 24/7 will significantly reduce the complexity of global payments and open new avenues for the application of stablecoins in the traditional financial system.
👀 Revolut to Launch Bitcoin Lightning Network Payments for European Users Through Lightspark
Key Highlights
Fintech giant Revolut plans to collaborate with Lightspark to enable Bitcoin Lightning Network-based payment services for users in the UK and select European countries, achieving faster and lower-cost transaction experiences.
This integration will utilize Lightspark's infrastructure to process Lightning Network payments, potentially lowering transaction fees and shortening payment processing times, providing Revolut users with more efficient cross-border payment options.
This move by Revolut signifies that mainstream fintech companies are actively adopting native crypto payment systems, bringing Bitcoin network scaling solutions into everyday financial services.
Why It Matters
- This is an important step for large traditional fintech platforms to adopt Bitcoin's second-layer solutions, providing millions of European users with the convenience of the Lightning Network, potentially promoting the practical application and popularization of Bitcoin as a payment network.
👀 Stripe Launches "Stablecoin Financial Account" Service: Targeting Payment Innovations Beyond the US, UK, and EU
Key Highlights
Stripe is quietly testing a stablecoin payment solution for companies outside the US, UK, and EU, launching a "Stablecoin Financial Account" service that allows users to send, receive, and store stablecoins in over 100 countries. Users can fund their Stripe accounts via ACH transfers, bank wire transfers, or DeFi external accounts, with funds held in Circle's USDC or USDB issued by Stripe's subsidiary, Bridge.
The service primarily targets underbanked regions in Latin America, Africa, South America, Asia, and Eastern Europe, excluding major economies like North America and Western Europe. US citizens are also unable to use this feature. This initiative will provide a more convenient dollar settlement channel for underbanked regions.
This project was launched shortly after Stripe acquired the stablecoin payment platform Bridge, making the timing strategically significant. The infrastructure provided by Bridge creates efficient alternatives to traditional systems like SWIFT for cross-border payments, greatly enhancing Stripe's technical capabilities.
Background data shows that the stablecoin market is growing rapidly, with projections reaching $3.7 trillion by 2030. Stripe's decision to start with markets outside the US, UK, and EU may be driven by the urgent demand for fast, low-cost cross-border payment solutions in these regions.
This move indicates that mainstream payment giants are beginning to view blockchain technology as a core tool for solving real payment issues rather than a marginal experiment. Stripe's involvement could accelerate the mainstream adoption of stablecoins in the global payment system.
Market Adoption
🌱 SEC Filings Show Record Mentions of "Cryptocurrency" and "Stablecoin"
Key Highlights
In April, the term "cryptocurrency" appeared a record 786 times in SEC regulatory filings, indicating a significant increase in the intersection between the crypto industry and regulation.
Mentions related to "stablecoins" have more than doubled in recent months, reflecting growing regulatory attention in the stablecoin space.
Data from The Block's research insights shows that discussions about crypto assets in public company and regulatory filings are at an unprecedented high level.
Why It Matters
- The surge in mentions in SEC filings reflects a new high in regulatory focus on the crypto industry, which may signal more regulatory actions or compliance requirements. Public companies are also increasingly prioritizing the disclosure of crypto-related risks.
🌱 Mesh Integrates Apple Pay: Users Can Spend Cryptocurrency, Merchants Settle in Stablecoins
Key Highlights
The crypto payment platform Mesh will launch Apple Pay support this quarter, allowing users to automatically convert crypto assets into stablecoin payments during everyday shopping, providing a seamless experience for consumers.
Retailers can accept crypto payments without directly handling crypto assets, gaining a "plug-and-play" payment option through the Apple Pay interface while receiving stablecoin settlements, thus reducing volatility risks.
Why It Matters
- This integration connects mainstream payment infrastructure with crypto assets, enabling merchants to accept crypto payments without changing their existing systems, potentially accelerating the adoption of stablecoins in the real economy.
🌱 Stablecoin Market Cap Surpasses $238 Billion, Hitting Record High, Non-USD Stablecoins Surge 30%
Key Highlights
A report from CoinDesk Data states that the stablecoin market cap grew by 2.12% in April, reaching a historic high of $238 billion, marking 19 consecutive months of growth. However, its market share fell from 8.64% in March to 7.88% due to stronger performance from other crypto assets.
The market cap of non-USD fiat stablecoins surged 30% in April to $533 million, attributed to dollar fluctuations caused by US tariff disputes and the benefits of gold-backed stablecoins from record high precious metal prices.
Major stablecoins showed varied performance: Tether (USDT) grew by 2.26% to $148 billion, USDC rose by 3.07% to a historic high of $62.1 billion, while First Digital Labs' FDUSD plummeted by 46.2% to $1.25 billion after losing its peg on April 2.
🌱 Abu Dhabi Sovereign Wealth Fund ADQ Joins FAB and IHC to Launch Dirham Stablecoin
Macroeconomic Trends
🔮 Political Maneuvering: Schumer and Warren Lobby Democratic Senators to Oppose Stablecoin Bill
Key Highlights
According to Politico, Senate Minority Leader Chuck Schumer and Elizabeth Warren privately urged Democratic senators to withdraw their support for the stablecoin bill.
This behind-the-scenes maneuver aims to gain more concessions from Republicans, leading to a sudden shift in position from nine Democratic senators, which left Republican aides "shocked" and made the bill's prospects highly uncertain, disrupting bipartisan cooperation.
Why It Matters
- The stablecoin bill has become a tool of political maneuvering, reflecting how US crypto regulation is deeply influenced by partisan politics. This sudden change increases regulatory uncertainty and exposes divisions within the Democratic Party regarding the approach to crypto regulation.
🔮 SoFi Plans to Re-enter Crypto Market During Trump's Term, Stablecoin Issuance Becomes Strategic Focus
Key Highlights
Supported by strong Q1 financial results, fintech company SoFi is planning to restart its crypto business, with core strategies including issuing stablecoins and launching tokenized loan services.
The company holds an optimistic view on the practicality of blockchain finance and is actively positioning itself to seize opportunities arising from the new regulatory environment under the upcoming government.
SoFi's move reflects a renewed focus of traditional finance and tech companies on the crypto market, particularly on the commercial potential in the stablecoin space.
Why It Matters
- The anticipated improvement in the regulatory environment under the Trump administration is attracting mainstream financial institutions back to the crypto market. SoFi's stablecoin plans signify a new trend of integration between traditional finance and crypto, potentially leading to more similar institutions entering the space.
🔮 Tether Gold Market Cap Surpasses $770 Million, Betting on the New Digital Gold Track
Key Highlights
Tether's gold token, Tether Gold (XAUT), has reached a market cap of $770 million, with 7.7 tons of physical gold stored in a Swiss vault. Additionally, Tether has completed its first audit compliant with Salvadoran regulations, confirming 1:1 backing with physical assets and undergoing regular audits.
As global risk aversion rises, gold prices have increased by 27% this year. Tether is leveraging XAUT to enter the digital gold space, attempting to bring this traditional safe-haven asset into the on-chain market in a compliant manner, meeting investors' demand for stable and transparent assets.
Overall, the combination of gold and crypto assets is becoming a new growth point in the digital asset space.
Capital Layout
💰 Stablecoin Company Zar Raises $7 Million to Enable Cash-to-Stablecoin Exchanges at Convenience Stores
Key Highlights
Stablecoin startup Zar has completed a $7 million funding round led by Dragonfly Capital, Andreessen Horowitz, and VanEck Ventures, with participation from Coinbase Ventures and Solana co-founders.
Zar was founded by Brandon Timinsky, former founder of Pakistani payment company SadaPay, aiming to leverage a global network of 28 million mobile financial agents to allow users to exchange cash for stablecoins at convenience stores via QR codes.
Although not officially launched, nearly 100,000 users have registered on the waitlist, and about 7,000 merchants have expressed interest in collaboration, targeting a market that spans 20 emerging countries including Pakistan, Nigeria, and Argentina.
Why It Matters
This service will provide residents in emerging markets with tools to hedge against inflation and facilitate convenient cross-border payments, leveraging existing convenience store infrastructure, and is expected to accelerate the application of the $238 billion stablecoin market in the real economy.
💰 World Liberty Stablecoin to Be Used for MGX's $2 Billion Investment in Binance, Integrated with Tron Ecosystem**
Key Highlights
Eric Trump announced at the Token2049 conference in Dubai that World Liberty Financial's stablecoin USD1 will be used to complete MGX's $2 billion investment transaction in Binance.
Trump also revealed that USD1 will be integrated with the Tron ecosystem, supported by Justin Sun, providing broader application scenarios for the stablecoin.
World Liberty Financial stated that USD1 will become one of the most transparent and regulated stablecoins in the market, backed by short-term government bonds and cash equivalents.
Why It Matters
The Trump family's growing business ties with Binance and Tron highlight the influence of political-business relationships on the crypto industry, marking a new generation of stablecoins gaining institutional-level adoption and endorsement.
💰 Kyrgyzstan to Launch Gold-Backed Stablecoin USDKG, Initial Reserve of $500 Million**
Key Highlights
Kyrgyzstan plans to launch the gold-backed dollar (USDKG) in the third quarter, a gold-supported stablecoin pegged 1:1 to the dollar, initially backed by a $500 million gold reserve from the Ministry of Finance.
The country plans to expand its gold reserves to $2 billion in the future and will conduct independent audits to ensure collateral transparency, with the stablecoin adopting an over-collateralization model to address gold price fluctuations.
USDKG will primarily target cross-border remittances and international trade, allowing users to exchange for physical gold, crypto assets, or fiat currency, initially focusing on the Central Asia market, with plans to expand to Southeast Asia and the Middle East.
Why It Matters
- This is the first gold-backed stablecoin directly endorsed by a sovereign nation, strategically significant for Kyrgyzstan, where remittances account for 30% of GDP, and represents an innovative application of national-level stablecoins in international trade.
💰 Visa Makes Strategic Investment in BVNK, Doubling Down on Stablecoin Payment Infrastructure**
Key Highlights
Payment giant Visa has made a strategic investment in stablecoin payment infrastructure startup BVNK through its venture capital arm, with the specific amount undisclosed, reflecting the trend of traditional financial institutions transitioning to blockchain payments.
London-based BVNK currently has an annual stablecoin transaction processing volume of $12 billion and is actively expanding into the US market, having obtained licenses in several states and established offices in New York and San Francisco.
This investment follows BVNK's completion of a $50 million funding round last year, with notable investors including Haun Ventures, Coinbase Ventures, and Tiger Global.
Why It Matters
- Visa's increased investment in stablecoin infrastructure indicates that blockchain payments are becoming an essential component of global financial infrastructure. Following PayPal's launch of its own stablecoin and Stripe's testing of stablecoin tools, payment giants are accelerating their deployment of faster, lower-cost cross-border payment solutions.
Regulatory Compliance
🏛️ Trump's Ties Cause Democrats to Block Stablecoin Bill, Market Regulation Legislation May Be Hindered**
Key Highlights
Senator Ruben Gallego and eight other Democrats have stated they will refuse to advance the GENIUS stablecoin bill unless anti-money laundering and national security provisions are strengthened.
Democrats are concerned that Trump may profit from stablecoin projects supported by his family through transactions in the UAE, demanding an investigation into the related MGX deal.
Trump's personal ties to sensitive matters have led to a slowdown in the legislative process for both the market structure bill and the GENIUS bill; Representative Maxine Waters has also halted hearings in the House.
Why It Matters
- The entanglement of stablecoin and market structure legislation in partisan disputes may delay the critical implementation of US crypto regulation.
🏛️ Tether Plans to Launch US-Focused Stablecoin This Year, CEO Says Waiting for Final Legislation**
Key Highlights
Tether CEO Paolo Ardoino stated in a CNBC interview that plans to launch a stablecoin targeting the US market could occur as early as the end of this year or early next year, depending on the progress of US stablecoin legislation.
The new stablecoin will be positioned as a "payment product," aiming to compete directly with payment services like PayPal's CashApp, specifically designed for US institutional users.
This plan indicates that Tether is actively expanding into the US market, intending to secure a strategic advantage in the increasingly competitive stablecoin space while preparing for the potential upcoming regulatory framework.
🏛️ SEC Ends Investigation into PayPal's Stablecoin PYUSD, No Enforcement Action Taken**
Key Highlights
PayPal announced on Tuesday that the US Securities and Exchange Commission (SEC) has terminated its investigation into its issued stablecoin PYUSD, and no enforcement action has been taken.
This decision provides significant regulatory clarity for mainstream payment giants participating in the stablecoin market, potentially encouraging more traditional financial institutions to explore similar businesses.
PayPal's PYUSD is one of the few stablecoins issued by a payment giant that has passed substantial regulatory scrutiny without issues.
Why It Matters
- The termination of the SEC investigation sends a positive signal to the stablecoin industry, indicating that the regulatory risks for large payment institutions issuing stablecoins are decreasing under appropriate compliance conditions.
🏛️ Cambodia's Huione Group Involved in $98 Billion Crypto Transactions Faces US Sanctions, Previously Launched Own Stablecoin to Evade Regulation**
Key Highlights
Blockchain analytics firm Elliptic reported that Cambodia's Huione Group has received a total of $98 billion in cryptocurrency transactions since its establishment in 2014.
The US Financial Crimes Enforcement Network (FinCEN) proposed on Thursday to restrict the group's use of the US financial system, aiming to sever its ties with the dollar.
The group launched its own stablecoin in January this year, explicitly stating that the purpose was to "avoid the transfer restrictions of traditional digital currencies," further evading regulatory tracking.
Why It Matters
- This is one of the largest financial sanctions actions taken by the US against overseas crypto entities, highlighting the potential risks of stablecoins in evading international regulation and possibly prompting countries to strengthen their crackdown on non-compliant crypto projects.
🏛️ Circle Secures In-Principle Regulatory Approval from UAE ADGM, Accelerating Expansion in Middle East and Africa**
Key Highlights
Global major stablecoin issuer Circle has received in-principle approval (IPA) from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) to operate as a money service provider.
This is a key step for Circle towards obtaining a Financial Services License (FSP), and following its registration in ADGM in December 2024, Circle is deepening its business layout in the UAE and the Middle East and Africa.
Circle also announced a strategic partnership with Abu Dhabi's tech ecosystem Hub71, which will provide stablecoin infrastructure support to over 500 tech startups and venture partners.
Why It Matters
- This move marks a significant regulatory recognition for major global stablecoin companies in the Middle East, promoting the UAE as a hub for on-chain finance while paving the way for compliant applications of stablecoins in emerging markets, demonstrating that regulatory clarity and innovation can coexist.
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