stablecoins

The Danish central bank, Danmarks Nationalbank, stated that the current usage rate of stablecoins in Denmark is very low and does not pose an immediate threat to domestic financial stability. However, the rapid growth of dollar-pegged stablecoins globally may expose Denmark to indirect financial market volatility and liquidity risks. Currently, there are no stablecoins denominated in Danish kroner in circulation, and the use of stablecoins by consumers and businesses is quite limited.As commercial banks, financial institutions, and payment applications connect to stablecoin infrastructure, the scale of related usage may change. USDT and USDC dominate the global stablecoin market, and turmoil in the overseas stablecoin market could transmit to Denmark through global liquidity channels and the U.S. financial system. Danmarks Nationalbank is collaborating with the European Central Bank (ECB) to ensure that central bank money continues to serve as the primary settlement asset for interbank transactions.

Payment company PayPal, stablecoin infrastructure project M0, and cryptocurrency payment platform MoonPay have launched PYUSDx, enabling businesses to create stablecoin-based products within days. The platform has processed transaction volumes exceeding 100 million dollars, with Saturn, Concrete, and Cap utilizing the related technology to launch products.Luca Prosperi, co-founder and CEO of M0, stated that PYUSDx allows developers to build on the product layer, enabling different businesses to develop various products based on the same technology. USD.AI and Fairblock are also listed as related projects. May Zabaneh, Senior Vice President and General Manager of PayPal's cryptocurrency business, mentioned that the stablecoin market is rapidly maturing. The total market capitalization of stablecoins is approximately 30.525 billion dollars, with USDT accounting for 60.07%; PYUSD has a market cap of about 2.814 billion dollars, ranking eighth. Businesses can issue brand digital dollars backed by PYUSD and set corresponding rules to redeem back to PYUSD when necessary.

On Wednesday, the House of Lords in the UK passed an amendment with 194 votes in favor and 138 against, requiring the government to develop a digital asset strategy, despite opposition from the ruling Labour Party.The amendment was proposed by Conservative peer Baroness Neville-Rolfe and calls for the UK Treasury to formulate, publish, and seek consultation on the strategy within 12 months after the Financial Services and Markets Bill comes into effect. The strategy will cover crypto assets, stablecoins, and tokenized securities, and will address issues such as innovation, consumer protection, and businesses' access to banking, payment, and settlement services. The relevant bill still needs to be submitted to the House of Commons, where members can accept, modify, or reject the amendments from the House of Lords. The UK Crypto Assets Business Council expressed support for the voting outcome. Previously, the Minister for Investment at the Treasury, Lord Stockwood, stated that the government already has a digital asset strategy and is implementing it.

Aave founder Stani Kulechov stated that he has submitted comments to the UK HM Revenue and Customs, suggesting improvements to the tax positioning of cryptocurrency collateralized loans and stablecoins.At the same time, he advocates for allowing stablecoins to be included in UK Individual Savings Accounts (ISA) in the future, giving stablecoin lending users the opportunity to enjoy relevant tax benefits.

Jack Dorsey's payment company Block has applied to establish Builders Bank & Trust, N.A. If approved, the bank will become an uninsured national trust bank directly regulated by the Office of the Comptroller of the Currency (OCC), focusing on providing custody and trust services for Bitcoin and stablecoins, without accepting deposits or issuing loans.The application is still pending OCC approval, and the OCC's public list of digital asset license applications currently includes 11 pending applications (submitted between February 23 and August 19), which does not yet include Builders Bank. Previously, the OCC conditionally approved five national trust applications in December 2025, including Circle's First National Digital Currency Bank and Ripple, as well as conversion applications from BitGo, Fidelity Digital Assets, and Paxos; Circle received final approval in July of this year.The Bank Policy Institute (BPI), representing large banks, had previously opposed a series of limited-purpose national trust license applications, arguing that companies should not obtain trust licenses unless they plan to operate a true trust company, and warned against using the license as a lightly regulated pathway for bank-like products. Block stated that Builders Bank will not begin operations until it receives the necessary regulatory approvals.

According to Cryptopolitan, the latest data from Token Terminal shows that the supply of euro stablecoins reached $848.1 million on September 7, marking an annual growth of approximately 22.6%, with a net increase of about $156 million. In the same period, US dollar stablecoins only saw a net increase of about $159 million, but their base was as high as $298.5 billion, which is 350 times the market size of euro stablecoins.In terms of market concentration, EURC and EURCV together account for 82% of the euro stablecoin supply, with EURCV issued by SG-Forge, a digital asset subsidiary of Société Générale, holding a MiCA-compliant license and accounting for 19.6%. It is the first stablecoin led by a licensed European bank subsidiary.In terms of on-chain distribution, Ethereum absorbed about $125 million of the incremental supply this year, achieving a market share of 69.4%; Solana added about $30 million, with a market share of 14.7%; together, they contributed almost all of the annual increment. Base, on the other hand, saw a decline, dropping from $73.9 million to $58.7 million. Analysis indicates that the growth of euro stablecoins is primarily driven by supply from issuers rather than demand from users, and liquidity for euro trading pairs in DeFi lending pools and perpetual contracts remains weak, with the supply-demand gap yet to be bridged.

According to the Korea Herald, a federal court in Washington, D.C. has ordered the seizure of a wallet asset involved in money laundering by North Korean overseas IT workers, including 158,123 USDC and 54,574 USDT, with a total value of approximately $212,700. The U.S. Department of Justice is seeking to confiscate a total of $7.74 million in North Korea-related cryptocurrency assets.

The Research Institute of Financial Technology at Renmin University published a compiled article on stablecoin research in the Journal of International Money and Finance. The related research is based on large language model (LLM) agents analyzing the de-pegging risks of stablecoins, which indicates that the de-pegging of stablecoins has significant nonlinear and threshold characteristics. The arbitrage mechanism can absorb a certain degree of informational pressure, but when the severity of the narrative reaches a "critical threshold," the system may quickly enter a state of sustained de-pegging.

The Bank of Korea released the latest research report stating that the widespread circulation of dollar-pegged cryptocurrencies in the local market may trigger capital outflows, putting downward pressure on the domestic currency exchange rate and increasing volatility.

According to data from the Central Bank of Brazil (BCB), cryptocurrency purchases in July amounted to $572 million, a decrease of nearly 80% compared to $2.6 billion in June, and a decline of nearly 60% from $1.4 billion in July 2025.Fernando Rocha, head of the statistics department at the Central Bank of Brazil, stated that the changes are part of the adaptation of cryptocurrency exchanges to the new regulatory environment for digital assets, with anti-money laundering controls and governance requirements being significant factors in the reduction of transaction volume. Since 2026, the total amount of cryptocurrency purchases in Brazil has reached $15.25 billion, more than doubling compared to $7.6 billion in the same period of 2025. BCB noted that most of the related transactions involve stablecoins.

Geoff Kendrick, the Global Head of Digital Assets at Standard Chartered Bank, stated that the global monthly trading volume of stablecoins has reached approximately $7 trillion, with Solana accounting for about one-fifth of stablecoin transactions.The interview also discussed the development trends of stablecoin payments and settlements by 2026, as well as how different blockchain networks are forming their own application positioning. Geoff Kendrick shared the progress of enterprises adopting stablecoins and stated that enterprise-level applications will become an important driving force for the further popularization of stablecoins.

CryptoQuant analyst Zizcrypto stated that the Stablecoin Supply Ratio Oscillator (SSR Oscillator) 90-day reading quickly rose to the "strong stablecoin buying demand" zone, reaching 3.74 on August 21, close to the peak of about 4 expected in November 2024. Since then, the indicator has started to decline, while BTC is currently trading around $77,000.The rapid rebound of the stablecoin demand indicator coincided with a strong liquidity pulse that occurred earlier in the market. However, what is more concerning now is not the short-term spike itself, but whether this demand signal can be sustained. If the 90-day SSR Oscillator continues to decline and falls back below the "high" zone, the confirmation strength of this indicator regarding the sustained increase in stablecoin buying demand will weaken. Currently, this change appears more like a liquidity pulse rather than a formed persistent demand expansion cycle.The demand signals from the stablecoin side have indeed strengthened significantly recently, but the 90-day oscillation indicator has already started to cool down from its peak of 3.74. If it cannot maintain itself in the "high" zone, then whether this liquidity improvement can evolve into more lasting demand growth remains in question.

Decentralised.co reported that the cost of sending $200 across borders is currently 6.36%, down from 9.67% in 2009, with the United Nations aiming to reduce it to 3% by 2030. Remittances consist of three parts: collecting from the remitter, transferring value, and paying the recipient, with the intermediate stage previously being slower and now the cheapest part. Receiving and paying require licenses, bank accounts, compliance, and payment networks. The process from Dubai to Manila takes about six steps, with only one step using blockchain.Pre-funded agent accounts decentralize operating capital. Tokenized dollars can be concentrated in a single funding pool, settled on Sundays, and rebalanced within minutes. Traders hold inventory and bear exchange rate risks. Félix Pago raised $200 million to facilitate remittances from the U.S. to Latin America via WhatsApp, with a16z leading a $87 million equity round and General Catalyst providing a $113 million credit line. Nium is now funding customer payments in USDC. a16z Crypto led a $10 million investment in Better Money. Conduit raised $36 million for corridors from Europe to Nigeria and Kenya, while Palla raised $14.5 million for white-label payments to thirty banks.The article states that stablecoins can fix pipeline issues but cannot resolve isolated systems related to legal matters or toll collection.

After a two-day meeting in Asheville, North Carolina, G20 finance ministers and central bank governors issued a statement committing to developing clearer rules for digital assets to promote financial innovation. The statement acknowledges that digital financial innovations, including digital assets, can support "broad economic growth" and play a key role in driving private sector innovation.The statement reads: "We are committed to advancing a responsible and effective regulatory and supervisory framework to maintain financial stability, support economic growth, and establish a clear path for sound digital finance and digital asset innovation, while taking into account cross-border opportunities and challenges." G20 officials expressed anticipation for the upcoming findings from the Financial Stability Board regarding the cross-border impacts of global stablecoin arrangements, as well as related reports on stablecoin data sources, availability, and potential challenges.They also reiterated their commitment to strengthening the G20 roadmap for cross-border payments and called on member countries to extend the operating hours of large payment systems. Several G20 member countries, including the United States, the European Union, and Japan, have reviewed the potential of digital assets or stablecoins to enhance the efficiency and accessibility of existing financial and payment systems and have established relevant frameworks.

The Monetary Authority of Singapore (MAS) has proposed amendments to the Payment Services Act, requiring stablecoin issuers to always hold at least 100% of the circulating tokens in equivalent assets as reserves, which must be segregated from the issuer's own funds and only held with licensed financial institutions.The proposal also prohibits issuers from paying interest or other yields linked to stablecoin holdings to holders, on the grounds that stablecoins are intended for payments rather than investment or yield generation. This stance is consistent with the U.S. GENIUS Act and the EU MiCA regulation. The consultation also considers limited recognition for foreign stablecoins regulated under equivalent overseas frameworks. The consultation closes on October 16, and the implementation date has not yet been announced.MAS Deputy Managing Director Ho Hern Shin stated that trusted and well-regulated stablecoins can serve as reliable settlement assets in the tokenized financial market, while reducing risks for users and the broader financial system.