AI payments and stablecoins are on the Fed's agenda; Stripe launches payment chain

AI agents and stablecoins, seemingly two parallel tracks, are collaborating to reshape the future of finance. In the past, financial transactions were fraught with friction—lengthy settlement processes, high fees, and complex manual approvals. Now, stablecoins are eliminating these frictions, and AI agents are bringing these frictionless transactions to an unprecedented high-frequency world. When capital flows and intelligent decision-making reach their peak, what fundamental changes will our financial system require? See the 23rd Cobo Stablecoin Weekly Report: Federal Reserve October Payment Innovation Conference: AI and payments, along with stablecoin applications, will be discussed side by side. Why might stablecoins become the natural currency for AI agents? Stripe officially announces the launch of Tempo, a dedicated public blockchain for payments. What signal does this move send to the industry? Market Overview and Growth Highlights The total stablecoin market capitalization reached $288.119 billion (approximately US$288.119 billion), a weekly increase of $4.813 billion (approximately US$4.813 billion). USDT maintains its dominant position, accounting for 59.21% of the market; USDC ranks second with a market capitalization of $72.109 billion (approximately US$72.109 billion), accounting for 25.03%.

Blockchain Network Distribution

Top 3 Stablecoin Market Cap:

1. Ethereum: $153.131b (US$153.1 billion)

2. Tron: $81.643b (US$81.6 billion)

3. Solana: $12.223b (US$12.2 billion)

Top 3 Fastest Growing Networks in Week 1:

1. Falcon USD (USDf) ：+24.58%

2. M By M^0 (M): +15.30%

3. Circle USYC (USYC): +12.49%

Data from DefiLlama

Entering the Fed's Agenda: The Promise of AI and Stablecoins for Payments

Stablecoins have already established a high-speed rail for cross-border payments, and the advent of AI agents could push this rail's usage to an extreme level. Imagine if everyone had multiple dedicated AI agents automatically handling various transactions for us. This would inevitably generate continuous and massive payment demand. This demand cannot be met through traditional payment channels. Only stablecoins can support real-time settlement at this scale and frequency. The Federal Reserve is keenly aware of this trend. At its upcoming Payments Innovation Conference on October 21st, the Fed will prioritize "AI and Payments" and "Stablecoin Applications" as core topics, demonstrating that these two areas have entered the mainstream policy landscape. While not directly combined into "AI + Stablecoin Payments," the convergence of trends is almost self-evident. The fit between AI and stablecoins is almost natural. AI agents are borderless and might simultaneously access computing power in Japan, purchase digital goods in Brazil, and then pay developers in India. However, the banking system is inherently country-specific and currency-centric. Stablecoins unify currency formats and provide low-cost, real-time cross-border settlement, making global payments as seamless as local transactions. More importantly, AI's inherent operating model involves numerous micropayments and conditional triggering. A single task can be broken down into hundreds of API calls, each requiring automated settlement and account allocation. Credit cards and bank transfers are completely unsuitable for this frequency. The programmability and smart contracts of stablecoins can transform payments into "intelligent behaviors," enabling automated payment upon task completion and automatic settlement of inquiries. Furthermore, for AI, payments are not just a flow of funds, but also a flow of information. Traditional payment records only record the amount and time, lacking context. On-chain stablecoins, on the other hand, inherently offer data traceability and real-time access. For AI agents, payment data itself is an asset that can be trained and optimized. This means stablecoins not only solve payment execution problems but also offer intelligent potential unsupported by traditional systems. Consequently, the funding market has already begun to invest. This week, PayPal Ventures led an investment in Kite, an AI payment infrastructure company. Its core product, Kite AIR, provides AI with identity authentication, risk control guardrails, and programmable payment rails. This directly translates the compliance and security modules of traditional payments into AI scenarios, making AI agents trustworthy and controllable economic entities. PayPal has already connected Venmo with the PayPal network, expanding its reach across both consumer and merchant channels. It also launched the PYUSD stablecoin and "Global Venmo," preserving channels for global distribution and low-cost settlement. Kite provides the security and execution layer for AI agents, while PayPal provides the stablecoin and distribution network. Together, they are forming the prototype of an automated payment network driven by AI agents. Stripe Launches Tempo, Dedicated Public Blockchain for Payments. Following numerous rumors and job postings, Stripe officially announced the launch of Tempo, a dedicated payments blockchain, confirming speculation that it is building its own public blockchain. Tempo is officially positioned as a Layer 1 blockchain designed specifically for payments, aiming to bridge the performance gap between traditional public chains and real-world payments. While Bitcoin and Ethereum still only have a few dozen TPS, Stripe can process over 10,000 transactions during peak periods. Tempo claims to support 100,000 transactions per second (TPS), sub-second settlement, EVM compatibility, and the ability to accept gas payments in multiple stablecoins. During its launch phase, Tempo will screen validators to prioritize performance and security, gradually expanding decentralization to address concerns about centralization and regulatory compliance. Unlike most public chains, which prioritize infrastructure and applications before exploring implementation scenarios, Tempo has been focused from the outset on specific applications such as cross-border clearing, merchant payments, tokenized deposits, and AI-powered payments. Its partnerships include banks, merchant platforms, and fintech companies, including Deutsche Bank, Standard Chartered, Shopify, DoorDash, Revolut, Visa, Nubank, and Mercury. The platform has also introduced the concept of "Agentic Payments," which allows AI agents to autonomously complete payments on-chain. This means that once launched, Tempo will likely be able to handle real-world business from large institutions, focusing on stablecoins' strongest areas: cross-border liquidity, merchant settlement, and agent payments. This aligns with recent regulatory priorities, including those of the Federal Reserve. From a strategic perspective, after integrating its wallet portal and compliance infrastructure, Stripe used Tempo to integrate clearing into its own ecosystem, directly targeting Visa's clearing advantage. Interestingly, Visa chose not to oppose the initiative, but rather to join as a partner. This may be due to their differing positioning in the stablecoin ecosystem. Visa's strength lies in its global merchant network and brand, not its on-chain performance. Its approach is to connect to multiple chains (Ethereum, Solana, and Tempo) through VTAP, which then channels this into its own merchant ecosystem to maintain its core position. Stripe is taking a different approach, establishing Tempo as a "stablecoin neutral layer" to attract the native liquidity of all stablecoins. Both approaches ultimately lead to a shared goal of seizing the right to carry global payment liquidity. This also means that, in addition to Visa, another participant directly affected is Circle: Tempo and its stablecoin network, Arc, may face direct competition for the right to carry global payment liquidity.

Regulatory compliance

Ukrainian Parliament passes cryptocurrency legalization and taxation bill at first reading

Quick overview

• The Ukrainian Parliament (Verkhovna Rada) passed the cryptocurrency legalization and taxation bill at first reading with 246 votes on Wednesday, proposing an 18% income tax and a 5% military tax on digital asset profits, with a temporary tax rate of 5% on fiat currency conversions in the first year;

• The bill will bring Ukraine's crypto tax system closer to that of crypto-friendly countries, exempting crypto-to-cryptocurrency and stablecoin transactions from tax, but the regulatory agency (whether it is the central bank or the National Securities and Stock Market Commission) has not yet been determined;

• Ukraine in Chainalysis 2025 Ranked eighth in the 2019 Global Cryptocurrency Adoption Index, it performed strongly in centralized value adoption (retail and institutional) and DeFi value adoption, the latter of which is gaining traction in Eastern Europe.

Why It Matters

• This bill will create opportunities for Ukraine to attract crypto investment and repatriate overseas assets of crypto enthusiasts, contributing to economic recovery and market modernization. Crypto tax legislation has become a global trend, with Denmark, Brazil, and the United States all advancing related policies over the past year, demonstrating the widespread global acceptance of digital assets.

India is stuck in bureaucratic deadlock and falls behind in the Asian stablecoin race

Quick Overview

• Polygon’s global head of payments and RWA, Aishwary Gupta, pointed out that India’s stablecoin regulation has reached a deadlock due to multiple departments passing the buck, and no government department is willing to assume regulatory responsibilities;

• Gupta estimates that India can save $68 billion annually if it integrates stablecoins into international payment processes, but regulatory uncertainty has prevented banks from taking action, and 80-85% of top crypto talents have moved overseas;

• Meanwhile, other Asian countries are making rapid progress: Japan has approved the issuance of JPYC yen stablecoin, South Korea has proposed a Korean won stablecoin bill, and Hong Kong 8 The global economy is shifting towards programmable currencies and tokenized assets. India has one of the largest bases of Web3 developers and users in the world, but regulatory deadlocks have left it lagging behind in this geopolitical competition, which has been described as the "Crypto Cold War."

ECB President calls for tackling risks of non-EU stablecoins

Key points at a glance

• ECB President Christine Lagarde called on policymakers to address regulatory loopholes in stablecoins, especially those issued outside the EU's MiCA framework;

• Lagarde stressed that non-EU stablecoin issuers must comply with a "robust equivalent regulatory regime" to operate in the EU, including allowing investors to redeem their assets at face value and requiring issuers to provide full reserve backing;

• ECB Executive Board member Piero Cipollone is concerned that US stablecoin policies may lead to the transfer of euro deposits to the United States and further strengthen the role of the US dollar in cross-border payments.

Why it matters

• As the United States implements the GENIUS Act to establish a stablecoin framework, major global economies are vying for dominance in the stablecoin market, and the EU needs to strengthen supervision to protect the status of the euro.

EU to push RWA tokenization proposal, regulators emphasize balancing innovation and investor protection

Key Points at a Glance

• Natasha Cazenave, Executive Director of the European Securities and Markets Authority (ESMA), said that tokenization has the potential to transform the market, but must develop within the framework of protecting investors and maintaining financial stability. An advisor to the European Commission revealed that a proposal for a savings and investment union that includes elements of financial instrument tokenization will be put forward in December.

• The global tokenized asset market is worth approximately US$600 billion, and Europe accounts for more than half of the world's tokenized fixed income market, which grew to US$3.5 billion last year. However, most projects are still in the small-scale, low-liquidity and experimental stages. Europe may lag behind the United States and Asia in the pursuit of perfection.

Why it's important

• Traditional financial institutions' attitude towards blockchain has shifted from hesitation five years ago to acceptance, and the EU sees blockchain as a key technology for integrating decentralized capital markets. Regulators are struggling to strike a balance between financial innovation and investor protection, and the DLT pilot mechanism provides a regulatory sandbox for testing different approaches under controlled conditions, preventing Europe from falling behind in the competition for digital assets.

South Africa plans to open its payment system to non-bank institutions

Key Points

• The South African Reserve Bank (SARB) plans to launch a proposal in the first half of next year to allow non-bank institutions to access the National Payment System (NPS) and end the monopoly of commercial banks;

• Currently, non-bank payment platforms must cooperate with commercial banks to clear and settle payments. The central bank believes that increasing access will promote competition, efficiency, innovation and inclusive finance;

• Global non-bank institutions are accelerating their entry into the real-time payment field. For example, Walmart plans to launch a real-time bank payment option, which can avoid high card interchange fees and improve cash flow and operational efficiency.

Why it matters

• An open payment system will revolutionize South Africa’s financial landscape, enabling non-bank innovators to directly participate in payment infrastructure, improving market competitiveness and service efficiency.

?️The launch of the yen stablecoin is timely on the eve of the Bank of Japan's interest rate hike

Quick Overview

• Japan's Financial Services Agency (FSA) may approve the first yen stablecoin as early as this fall. Tokyo fintech company JPYC plans to register as a remittance business and launch a stablecoin pegged 1:1 to the yen;

• Top bankers and economists expect the Bank of Japan (BOJ) to raise interest rates in the fourth quarter. Hiroshi Nakazawa, head of Hokuriku Financial Group, said the BOJ may raise interest rates in October or December, after having already raised interest rates twice in July last year and January this year;

• Japanese government bond yields climbed to multi-decade highs, 30 The yield on 10-year government bonds exceeded 3.2%, and the yield on 10-year government bonds reached 1.64%. The gap between the 10-year yields between Japan and the United States narrowed to 2.62%, the lowest since August 2022, suggesting that the yen will appreciate.

Why it matters

• The Bank of Japan expects interest rate hikes to increase the appeal of the yen and yen-based assets. BTC/JPY has fallen 8% and formed a technical top reversal pattern. The timing of the launch of the yen stablecoin is perfect.

New Product Express

? Bybit Launches Cryptocurrency Debit Card in Europe

Quick Overview

• Bybit, one of the world's largest cryptocurrency exchanges, has launched a debit card throughout the European Economic Area (EEA), allowing users to use digital assets for consumption through the Mastercard payment network;

• The debit card supports cryptocurrency payments such as Bitcoin and USDC, can be connected to Apple Pay and Google Pay, and users can also withdraw cash at ATMs, fully compliant with the European MiCAR regulatory framework;

• Bybit launches promotion: new users in September can get 20% cashback on purchases (must deposit at least $100 in cryptocurrency), a €5 bonus on your first trade, and rebates on subscriptions like Netflix and Spotify.

Why It Matters

• With over 2 million Bybit cards in circulation worldwide, expansion into Europe allows the exchange to enter a market experiencing increasing regulatory clarity, reflecting a pivotal moment for the crypto industry as regulatory clarity and institutional adoption grow.

Catena Labs Launches ACK-Lab Developer Preview to Build Trust Infrastructure for AI Agent Commerce

Key Points

• Catena Labs (the company building the first AI-native financial institution) has launched the ACK-Lab Developer Preview, which provides AI agents with three core features: cryptographic authentication, secure wallets, and enforceable policies based on the open source Agent Commerce Kit (ACK) protocol;

• Two demo projects are provided: one shows an agent autonomously executing a simulated USDC to SOL exchange transaction, and the other shows an agent negotiating access rights in a data market and automatically finding a reciprocal price within a policy range;

• Developers can use the ACK-Lab developer preview in 5 minutes Register as an agent at ack-lab.catenalabs.com and experience agent trading with the Replit demo project. Adjust policies and observe different outcomes. All transactions are audited.

Why This Matters

• Existing financial infrastructure is not designed for AI agents. Catena Labs is using the ACK protocol to build AI-native financial institutions. ACK-Lab allows developers to experiment with these open protocols without having to build from scratch, laying the foundation for future AI agents to conduct financial transactions securely and efficiently.

Visa opens MCP server to accelerate the development of AI agent commerce

Key Points

• Visa announced on Thursday that it has opened up access to its Model Context Protocol (MCP) server production environment, allowing developers to connect AI agents directly to Visa’s smart commerce API, reducing custom development that originally took weeks to hours;

• The company also launched the Acceptance Agent Toolkit, which allows non-technical teams to generate invoices, create payment links and run analysis through simple natural language instructions, enabling common payment functions without writing code;

• Visa’s senior vice president of global growth, Birwadker, said that several large retailers are already exploring pilot projects for the holiday season, and MCP Serving as a secure integration layer, the server standardizes how agents interact with Visa services, with the goal of extending Visa brand trust to the agent commerce space.

Why It Matters

• E-commerce is shifting from protecting against malicious bots to embracing AI agents acting on behalf of consumers. Visa builds a foundation of trust through identity verification, standardized data, and a security framework, bringing the same ubiquity and reliability to agent commerce as credit card transactions.

Market Adoption

Ripple Introduces $700 Million RLUSD Stablecoin to Africa to Pilot Extreme Weather Insurance Project

Quick Highlights

• Ripple partners with Chipper Cash, VALR and Yellow Card to distribute the US dollar-pegged RLUSD stablecoin to corporate and institutional users on the African continent, providing a stable digital dollar for cross-border payments, liquidity and on-chain settlement;

• RLUSD will be launched at the end of 2024 and issued by a trust company regulated by the New York State Department of Financial Services. The current supply on Ethereum and XRP ledgers has exceeded 7 $1 billion, which can be used for financial operations, remittances, and as collateral for tokenized assets such as commodities or securities. Mercy Corps Ventures is testing a climate risk insurance program based on RLUSD in Kenya, including a pilot program that automatically releases funds to respond to drought conditions based on satellite data, and rainfall insurance that triggers payouts in response to extreme weather events. Why It Matters: Stablecoins are becoming a cheaper and faster alternative to traditional payment channels, particularly in emerging markets where the reliability of currency and banking services is limited. Residents in parts of Africa already use digital dollars like USDT for savings or cross-border transfers. The introduction of RLUSD provides institutional users with a regulated alternative, addressing the challenge of accessing stable liquidity in local currencies.

Ethena’s USDe stablecoin supply surges to $12 billion, accounting for over 15% of USDC

Quick Points

• USDe has become a strong competitor to challenge the dominance of USDC and USDT. Its unique selling point is that as a yield-generating crypto-native stablecoin, it provides an annualized yield of 9%-11% through a delta-neutral hedging strategy.

• USDe maintains the stablecoin’s peg by maintaining a delta-neutral strategy between ETH/BTC collateral and short futures positions, taking advantage of the positive funding rates in the current rising market environment to generate income;

• Why It Matters

  • USDe's explosive growth demonstrates the immense appeal of innovative stablecoin designs in the current market environment, challenging the dominance of traditional non-yielding stablecoins. Its innovative mechanism based on ETH/BTC collateral and futures hedging allows stablecoin holders to earn significant returns while maintaining price stability. However, this ecosystem's reliance on leverage and recursive lending also raises concerns about its sustainability. If funding rates turn negative or market conditions deteriorate, it could trigger cascading liquidation risks, similar to patterns observed in previous DeFi cycles. USDe's growth reflects genuine demand for high-yield stablecoin assets in the current bull market, but it also serves as a reminder to market participants to be wary of the systemic risks of excessive leverage. This complex yield-amplification strategy represents the forefront of DeFi innovation, but it could also become an amplifier of future market volatility, worthy of close attention from regulators and market participants.

  Macro Trends

  Galaxy Digital CEO predicts AI agents will become the largest user group of stablecoins

  Quick Points

  • Galaxy Digital CEO Mike Novogratz predicts that in the near future, AI agents will become the largest users of stablecoins, rather than operating through traditional payment methods;

  • Novogratz gave the example that in the future, AI agents may autonomously purchase groceries for users, understand users' dietary preferences and dieting needs, and use stablecoins to complete transactions, which is expected to trigger an explosive growth in stablecoin transaction volume;

  • This prediction is consistent with market trends: some technology companies are exploring stablecoin payments, Visa It has expanded the range of stablecoins supported by its settlement platform, with 90% of institutional participants using or exploring stablecoins.

  Why it matters

  • With the Coinbase development team predicting that AI agents will become the largest users of Ethereum, the Web3 space is accelerating the construction of specialized infrastructure for AI agents.

  Financial Times: Stablecoins will force the modernization of the financial system

  Quick Overview of Key Points

  • The US stablecoin legislation has caused a global shock. Many countries are worried that the dollar-backed stablecoin will strengthen the dollar's dominance in international payments. The European Central Bank has warned of the possible loss of monetary autonomy.

  • Stablecoins are revealing the inefficiency of the modern financial system and demonstrating how to use new technologies to create efficient and low-cost domestic and cross-border payment methods. At the same time, they are exposing the crisis of trust in central banks and currencies of various countries.

  • The best response strategy is not to restrict the use or issuance of stablecoins in one's own currency, but to develop a more robust and inclusive domestic payment system, reduce cross-border payment frictions, and enhance trust in one's own central bank and currency.

  Why it matters

  • Stablecoins are driving improvements in financial markets and forcing commercial banks and central banks to improve their service levels, which will be their real legacy.

  Citi: Stablecoins and AI are expected to drive changes in post-trade settlement

  Key Points at a Glance

  • Citi’s latest survey shows that by 2030, 10% of global market trading volume will be conducted through tokenized assets, mainly driven by stablecoins issued by banks. The Asia-Pacific region has taken the lead in adoption due to strong retail crypto demand and regulatory support;

  • 86% of the institutions surveyed are testing AI technology for customer onboarding processes, and 57% are piloting AI specifically for post-trade processing, focusing on scenarios such as customer onboarding and post-trade reporting;

  • As the industry faces the transition to T+1 As the settlement cycle (settlement one business day after the trade date) shifts workload, technology-driven automation will help institutions address the challenge of accelerated settlement.

  Why It Matters

  • Citi's "The Evolution of Securities Services" white paper (based on a survey of 537 market participants) indicates that the global post-trade industry is entering a new phase of transformation driven by digital assets and AI. Bank-issued stablecoins are a key driver, improving collateral efficiency and fund tokenization, while AI will further enhance post-trade efficiency. As market participants accelerate the adoption of digital assets and implement generative AI in their operations, the industry is at a critical juncture of significant change. This convergence reflects the trend of modernizing financial infrastructure. From asset servicing automation to enhanced shareholder engagement and corporate governance, the collective vision of global institutions is converging on the same core themes, signaling that the deep integration of traditional financial infrastructure and emerging technologies will reshape the transaction and settlement processes in global capital markets.

  Report: Check fraud risk is 31 times higher than real-time payments

  Quick Points

  • Only 2% of businesses report fraud using RTP or FedNow real-time payments, while 63% report check fraud, and ACH and wire transfer fraud rates are 38% and 30%, respectively;

  • Despite data proving real-time payments are more secure, 78% of financial institutions still choose to implement real-time payments in a receive-only model, limiting its value; 85% of payment professionals expect real-time payment fraud to increase;

  • Real-time payment system design includes push architecture, API-level security, and instant transaction visibility, while payee confirmation technology has decreased by 60% in the UK Fraud, similar protections are being deployed in the United States.

  Why it matters

  • Financial institutions’ excessive risk concerns about real-time payment systems have hindered their adoption, and a shift in mindset is needed to take advantage of what is effectively the most secure payment channel.

  Capital Layout

  Utila Raised US$22 Million in Financing, Valuation Tripled, to Meet the Surge in Demand for Stablecoin Infrastructure

  Quick Points

  • Crypto infrastructure provider Utila has completed US$22 million in financing, led by Red Dot Capital Partners. Its valuation has almost tripled in six months, bringing the total amount of Series A financing to US$40 million;

  • Utila provides a digital asset operation platform designed specifically for enterprises, handling payment, fund management and trading functions, with a monthly transaction volume of more than US$15 billion. Its customers include payment providers, digital banks and asset management companies.

  Why it matters

  • The stablecoin market has exceeded $280 billion and is becoming a killer application for blockchain technology. Retail giants such as Walmart and Amazon are exploring the use of stablecoins, and Utila plans to use the new funds to accelerate its entry into emerging markets such as Latin America, Africa and Asia-Pacific.

  Obita secures $10 million in funding to build a cross-border payment network based on stablecoins

  Key Points

  • Obita, a cross-border payment and digital financial network company, has completed a $10 million angel round of financing. The funds will be used for R&D, compliance infrastructure construction and market expansion to accelerate the deployment of its cross-border payment network based on stablecoins;

  • Obita is building a blockchain-native payment network under its "Obita Mesh" framework, integrating enterprise-level compliance systems, cross-border clearing networks and unified fund management tools to address industry pain points such as high foreign exchange costs, settlement delays and insufficient transparency in capital flows;

• Artificial intelligence company Kite received $18 million in financing co-led by PayPal Ventures to build agent AI and stablecoin payment infrastructure

  Quick Overview

  • Artificial intelligence company Kite completed an $18 million Series A financing round co-led by General Catalyst and PayPal Ventures, bringing the total financing to $33 million. It will expand its autonomous agent trading platform based on stablecoins;

  • Kite’s flagship product, Kite AIR (Agent Identity Resolution), provides AI agents with verifiable identities, policy protections, and programmable payment rails, enabling them to use stablecoins for authentication, payments, and interactions;

  • Through cooperation with With the integration of Shopify and PayPal, any merchant can choose to open discovery capabilities to AI shopping agents. Purchases will be settled using on-chain stablecoins, avoiding the high transaction fees of traditional payments. Kite positions itself as the default stablecoin payment layer for autonomous agents.

  Why It Matters

  • The "agent network" infrastructure built by Kite marks a critical convergence point between AI and crypto payments. Stablecoins hold broad application prospects in AI economic models. Their instantaneous settlement and low fees enable inter-agent billing, micro-subscriptions, and machine-speed commerce. This infrastructure will transform how AI interacts with the financial system, providing the essential payment pipeline for the emerging agent economy. As autonomous AI agents become more prevalent in commercial scenarios, Kite's solution addresses the three core challenges of identity verification, policy compliance, and settlement, promising to become a crucial bridge connecting the AI ​​revolution and blockchain finance. This financing reflects investors' strong confidence in the integration of AI agent economy and stablecoin payments. PayPal's strategic investment in particular shows that traditional payment giants are actively deploying in this emerging field.

  Reflect Money secures $3.75 million in funding and launches Solana’s yield-generating stablecoin USDC+

  Key Points

  • Reflect Money announced the completion of a $3.75 million funding round, led by a16z crypto CSX, with participation from Solana Ventures, Equilibrium, BigBrain VC, and Colosseum. It also launched its new flagship yield-generating stablecoin USDC+ on Solana.

  • The Reflect protocol solves the problem of traditional stablecoins relying on off-chain custody systems to obtain interest rates. By eliminating idle assets and removing middlemen, it achieves 100x capital efficiency, enabling stablecoins to improve the efficiency of their issuance networks.

• Why It Matters

  • Reflect Money's fundraising and launch of USDC+ represent a significant innovation in the stablecoin space: on-chain capital efficiency. Compared to traditional stablecoins, yield-generating stablecoins can generate passive income for holders while maintaining price stability, addressing the opportunity cost issue long faced by crypto asset holders. As the DeFi ecosystem matures, capital efficiency has become a key competitive advantage. Reflect's solution provides users with a trustless income mechanism by directly integrating stablecoins with on-chain yield sources.