In 2024, the annual transaction volume of stablecoins exceeded the sum of Visa and Mastercard for the first time, shaking the moat of the traditional card network on a large scale. Mastercard obviously realized that it could not maintain its monopoly position in the long run by relying solely on clearing rules and fees. Mastercard's latest strategic move is moving itself from the "middle stage of consumer support" to the starting point of the user's on-chain journey: joining hands with Chainlink, Shift4, Zerohash, and Uniswap to integrate bank card payments with on-chain delivery, thereby bypassing the cumbersome coin purchase process of centralized exchanges and directly opening up the conversion closed loop between fiat currency and on-chain assets.
If Mastercard's previous launch of crypto debit cards with Kraken and its cooperation with MoonPay to support merchants in accepting stablecoin payments were penetration in the "middle" of the crypto payment process and focusing on the circulation and consumption of existing assets; then this cooperation means that Mastercard is participating in the initial stage of the conversion of fiat currency to crypto assets, that is, the construction of the on-chain asset entrance. This is a more radical step, aimed at achieving conversion at the starting point of the user journey.
Mastercard's greater ambition is to penetrate into the "final settlement layer" of funds. In the traditional fiat currency system, the final transfer of funds is dominated by commercial banks and central banks, and Mastercard only controls the instructions and clearing logic. In the stablecoin-driven payment network, it is trying to take over more underlying processes: through the Mastercard Move platform, it provides stablecoin minting and redemption services for enterprises and financial institutions; through cooperation with Paxos (USDG), Fiserv (FIUSD) and PayPal (PYUSD), it deploys an on-chain wholesale settlement network to obtain coordination rights and profit-sharing rights in the circulation of stablecoins between institutions.
Mastercard's core judgment is: the closer one is to the settlement, the more one can determine the flow and distribution of value. In the on-chain era, there is more of a re-scramble for payment governance rights and the right to set technical standards. From the information flow instruction layer to the value flow settlement layer, Mastercard's stablecoin strategy is a reconstruction of its "platform power".
Tether bets on emerging markets and programmable finance
In the last Stablecoin Weekly Report, we mentioned that the GENIUS Act set an "orderly delisting" timetable for USDT in the United States, and Tether may have to withdraw from compliant platforms and turn to the "Global South". This week, Tether CEO Paolo Ardoino's speech in the Bankless podcast further confirmed the strategic logic of this shift. He pointed out that in the context of the United States' financial efficiency reaching 90%, the marginal improvement that stablecoins can bring is limited, and it is difficult to support the profit model, and it can only fall into price wars and "involution" in the end. On the contrary, in emerging markets (such as Nigeria) where financial efficiency is only about 20%, if stablecoins can improve efficiency to 50%, this 30% structural gain can support the stablecoin premium. In extreme cases (where they may face problems such as sharp fluctuations in their own currencies), local users may even be willing to let Tether retain its interest income.
Therefore, Tether has given up on replicating its "global south" business model in the United States and turned to a new path centered on return of income (in a way similar to tokenized money market funds) and programmability: including building AI proxy wallets, integrating IoT devices, opening cross-chain wallet SDKs, and reconstructing distribution networks through channels such as Rumble.
Behind Tether's "two different strategies" lies the divergent fate of the stablecoin business model in different financial soils. In the United States, where financial efficiency has reached perfection, the popularization of stablecoins may need to go beyond the traditional narrative of "cost and speed" and focus on the deep integration of revenue sharing, programmability and new economic scenarios. Its continued expansion in the global southern market confirms that "solving market failures" is the eternal rule for stablecoins to achieve product-market fit. This game about the future of currency has just begun.
SlowMist: HuionePay processed more than 50 billion USDT on the TRON chain, and the flow of funds showed typical illegal characteristics
In the latest analysis by the on-chain anti-money laundering platform SlowMist, a crypto platform called "HuionePay" was revealed to be suspected of large-scale illegal fund flows. It processed more than 50 billion USDT through the TRON chain in the past year and a half, and showed many typical high-risk characteristics.
On-chain data shows that the platform's net outflow of funds is as high as 2.771 billion USDT, and the number of withdrawal transactions once reached 150,000 transactions per day in May 2025, which is much higher than the deposit frequency in the same period, reflecting the "high-frequency withdrawal" model in which funds are quickly transferred. This behavior is highly consistent with illegal uses such as fraudulent fund laundering and capital flight.
Despite the questionable nature of the platform, the number of its active deposit addresses continues to grow, and has accumulated to more than 80,000, indicating that it is still attractive to specific user groups. Multiple core withdrawal addresses process billions of USDT, and there are on-chain interactions with addresses on the OFAC sanctions list and known attackers (such as BingX hackers). The funds are highly concentrated and the paths are traceable, indicating a direct connection with the underground network fraud system.
It is worth noting that the report points out that multiple key addresses may be controlled by "Haowang Guarantee" (formerly "Huiwang Guarantee"), implicating a wider Southeast Asian fraud network. Funding activities are concentrated in UTC 03:00-13:00, which is consistent with the region's operating time zone, further verifying the consistency of its geographic location and behavior pattern.
On-chain intelligence also reveals the key role of regulatory coordination: including Tether's freezing of assets, FinCEN's involvement, Telegram's channel ban, and the joint release of a report by the United Nations Office on Drugs and Crime (UNODC) and Elliptic. The above actions ultimately led to Huiwang announcing the suspension of operations, becoming a typical "multilateral containment" case in the field of stablecoins.
This incident once again highlights the systemic risk exposure of USDT on the TRON network, and strengthens the strategic value of on-chain tracking tools (such as MistTrack) in the identification of illegal capital flows and law enforcement coordination.
Market Adoption
Mastercard fully embraces stablecoins and integrates the three major stablecoins of Paxos, Fiserv and PayPal
Key Points
Mastercard announced that it will integrate PayPal's PYUSD, Paxos-led USDG and Fiserv's newly launched FIUSD into its global payment network, expanding its already supported Circle USDC ecosystem;
The payment giant will work with Fiserv to introduce FIUSD into card products, on-chain and off-chain channels and merchant settlement systems, and join the Global Dollar Alliance behind the USDG stablecoin;
Mastercard will support cross-border stablecoin transactions through the Move service, and allow consumers to use both fiat and stablecoin balances in a single interface through One Credential technology.
Why it matters
This series of measures represents the global banks and payment giants are accelerating to embrace stablecoins, a fast-growing asset class worth $260 billion. With the passage of the GENIUS Act by the U.S. Senate to provide a regulatory framework for the stablecoin industry, institutional adoption is accelerating. "While consumers will continue to use fiat currencies and Mastercard in most scenarios, regulated stablecoins are undoubtedly part of the evolution of digital payments," said Jorn Lambert, Chief Product Officer of Mastercard. Mastercard's move means that financial institutions and businesses will soon be able to mint, redeem and settle specific stablecoin transactions, while consumers can use stablecoins for transfers and payments like traditional currencies, including at 150 million merchant outlets worldwide. These integrations will bring stablecoin payments closer to mainstream financial services, greatly increasing their practicality and popularity.
Chainlink and Mastercard partner to enable nearly 3 billion cardholders to purchase cryptocurrencies directly on the chain
Quick Highlights
Chainlink and Mastercard announced a partnership to connect networks, enabling more than 3 billion Mastercard cardholders to purchase cryptocurrencies directly on the chain;
Fiserv, a financial technology giant, announced the launch of the FIUSD stablecoin for global financial institutions
Key points
Fiserv plans to launch the dollar-pegged stablecoin FIUSD and a digital asset platform by the end of 2025, aiming to provide digital asset services to its 3,000 regional and community banks and 6 million merchants;
Why it matters
The move marks a strategic "embrace" of stablecoins by traditional financial giants. Faced with the impact of stablecoin trading volume exceeding $27.6 trillion in 2024 (surpassing the sum of Visa and Mastercard), Fiserv's move is seen as "damage control" for the traditional payment high-profit model. It aims to retain customer deposits and gain a place in the digital asset ecosystem by providing stablecoin services. This move conforms to the market's demand for instant and composable financial services, and traditional giants have to adapt.
PwC releases Hong Kong Web3 Blueprint and establishes five action groups
Highlights:
PwC and Web3 Harbour jointly released the "Hong Kong Web3 Blueprint", focusing on five key drivers: talent, market infrastructure, standards, regulation and funding contribution;
PwC Hong Kong Partner Peter Brewin announced that five special action groups will be established in August, focusing on stablecoins, fund management, virtual asset trading platforms (VATP), legal compliance and custody over-the-counter transactions;
Why it is important:
The active participation of the "Big Four" accounting firms in Hong Kong's Web3 strategic planning shows that professional service institutions are accelerating the layout of the digital asset ecosystem and promoting the development of industry standardization.
Kakao Pay, the South Korean payment giant, applied for the KRWKP stablecoin trademark
Quick overview of key points:
Kakao Pay submitted 18 trademark applications related to "KRWKP" to the Korean Intellectual Property Office, covering service categories such as stablecoin names, payment settlement and cryptocurrency wallets;
Market analysts believe that this move may be Kakao Pay's preparation for launching its own Korean won stablecoin, demonstrating its intention to enter the encrypted payment field;
Why it is important:
South Korea's mainstream payment platforms have shown interest in stablecoins, indicating that South Korea's financial technology giants are actively deploying digital asset payment tracks.
Cenoa and Bridge collaborate to unlock global opportunities for entrepreneurs in emerging markets, with stablecoins becoming a key tool
Key Points
The Cenoa platform provides blockchain-based financial infrastructure for entrepreneurs in emerging markets (such as Turkey and Nigeria) to address global payment needs that cannot be met by the traditional banking system;
Through cooperation with Bridge, Cenoa users can instantly obtain a virtual US dollar account, and funds are automatically converted into USDC and deposited into user wallets, bypassing the delays, high exchange rate markups and restrictions of the traditional banking system;
Compared to traditional services such as PayPal and Wise, Cenoa offers 80% lower cross-border payment fees, nearly 10 times lower total costs, attracting more than 10,000 users in Turkey within six months, with monthly transaction volume exceeding US$5 million.
Why it matters
E-commerce sellers and freelancers in emerging markets need US dollar accounts to participate in global trade (such as selling on Amazon or receiving payments through Upwork), but the account opening process of traditional services is slow and costly. Cenoa uses stablecoin infrastructure to solve this pain point, reducing customer onboarding time to less than 3 minutes and increasing transaction volume 30 times. This collaboration demonstrates the practical application value of stablecoins as a tool for economic inclusion, not only solving the problem of foreign exchange fees as high as 8%, but also providing emerging market users with the opportunity to participate in the global economy fairly. Cenoa is using blockchain technology and stablecoins to help millions of emerging market entrepreneurs overcome systemic barriers, rescue them from poverty, and stand on the same starting line as their Western counterparts.
Ethereum stablecoin users exceed 750,000, a record high
Quick overview of key points:
The Ethereum network's major stablecoins such as USDT, USDC, BUSD and DAI have more than 750,000 weekly active users, a record high, showing that stablecoins have shifted from speculation to practicality-driven adoption;
USDT has a supply of $73 billion on the Ethereum network, and USDC has a supply of $41 billion, accounting for the vast majority of the network's $134 billion stablecoin market;
Intensified competition among stablecoin issuers is expected to promote service improvement and innovation by attracting users through lower transaction fees, increased profit opportunities and holder incentives.
Why it's important:
The growth of stablecoin users reflects the popularity of the digital dollar. As traditional financial institutions integrate stablecoin infrastructure, it will become a key component of digital commerce.
Rain and Toku cooperate to launch a global stablecoin salary system, covering more than 100 countries
Key points at a glance:
Stablecoin payment platform Rain and compliance service provider Toku jointly launched a cross-border stablecoin salary system, allowing companies to settle employee salaries in real time in the form of stablecoins;
The system supports Circle's USDC, Ripple's RLUSD and Global Dollar, USDG and other stablecoins, more options will be added gradually according to customer needs and compliance assessments;
The platform seamlessly integrates mainstream payroll systems such as ADP, Workday and Gusto, and companies can complete deployment within a week, while meeting the labor laws and tax compliance requirements of more than 100 countries.
Why it is important:
Stablecoins are accelerating their expansion into actual commercial application scenarios, the GENIUS Act promotes regulatory clarity for the industry, and blockchain salary payments can completely change the traditional salary payment method and achieve instant settlement after work is completed.
New Product Express
Bitkit adds Bitcoin payment function, direct settlement of daily services such as Netflix
Key Points:
Bitkit wallet application adds Bitcoin direct payment function, users can now directly use Bitcoin to pay for daily life services such as Netflix, Airbnb, groceries, mobile data, etc.;
This function eliminates traditional payment friction without bank intermediaries and simplifies the use of Bitcoin in actual scenarios;
Why it is important:
The expansion of Bitcoin applications into daily consumption scenarios lowers the threshold for the actual use of cryptocurrencies and helps promote the mainstream adoption of encrypted payments.
Circle Announces USDC and CCTP V2 Officially Available on Codex Blockchain
Key Points
USDC and CCTP V2 Are Now Available on Codex Blockchain Designed for B2B Stablecoin Trading;
Circle Mint and its API fully support USDC on Codex, enabling qualified businesses to easily access USDC liquidity and enjoy the benefits of Codex's fast and secure network;
Codex is a new EVM blockchain focused on performance, compliance, and cost efficiency, designed to bring more physical business activities on-chain, especially in the most challenging payment corridors.
Why it matters
The launch of USDC on Codex will drive a variety of enterprise-level use cases: enterprise-level stablecoin settlement, on-chain foreign exchange and multi-currency settlement, and cross-chain transfers. Through the CCTP V2 protocol, users can securely transfer USDC between Codex and other supporting chains in seconds without relying on liquidity pools or third-party fillers. Qualified companies can apply for a Circle Mint account to obtain USDC deposit/withdrawal channels on Codex, while SMEs and individuals can access USDC services through the Circle partner network. This integration further expands the USDC ecosystem, providing companies with regulatory-compliant digital dollars for accelerated payments, global settlements, and simplified financial operations.
Dynamic launches "Stablecoin Accounts" and "Stablecoin Center"
Quick Overview of Key Points
Dynamic launches "Stablecoin Accounts" to help fintech and global payment teams launch stablecoin-based currency applications in days (rather than months);
The solution aims to solve the problems of decentralized stablecoin infrastructure and encryption complexity, and simplify the entire process including wallet infrastructure, on-chain and off-chain channels, and payment processes;
The "Stablecoin Hub" launched at the same time is a free evolutionary resource to help teams navigate the stablecoin ecosystem and become the preferred destination for stablecoin development and learning.
Why it matters
As the stablecoin market scales up and institutional acceptance increases, developing infrastructure is becoming a key pain point in the industry. Dynamic's new initiative directly targets the technical barriers faced by fintech companies and payment teams in adopting stablecoins, accelerating the popularization of stablecoin applications by simplifying infrastructure and lowering development barriers.
Former Stripe Growth Head Launches Borderless to Help African Diaspora Invest Collectively in Startups and Real Estate
Quick Highlights
Joe Kinvi used proceeds from Stripe’s acquisition of Touchtech Payments to create Borderless, a platform that helps African diaspora invest collectively in startups and real estate in their home countries;
The UK platform has processed more than $500,000 in transactions since its beta test last year, currently has more than 100 communities on the waiting list, and has supported investments in more than 10 startups and 2 Kenyan real estate projects;
Borderless solves the main pain points of cross-border collective investment: bank account freezes, currency mismatches, regulatory requirements and certification rules, and builds trust by routing funds directly to verified sellers, escrow accounts or lawyers.
Why it matters
African diaspora remits billions of dollars home each year, but few are invested in productive assets. Kinvi estimates that around $30 billion of expat savings sits unused every year. Borderless enables expats to invest collectively and securely by providing a compliant backend infrastructure, with a minimum investment of $1,000 for startups and $5,000 for real estate. The platform operates under the UK regulatory framework, ensuring that investment opportunities are promoted to expats legally. Unlike remittance-focused platforms such as Zepz, LemFi, and NALA, Borderless focuses on long-term investment solutions. The company has raised $500,000 in seed funding from DFS Lab, Paystack CTO Ezra Olubi, and executives from Stripe and Google, among others.
SoFi announced its return to the crypto space and will launch a cross-border remittance service based on stablecoins
Key Points
The US fintech platform SoFi announced that it will launch international remittance services through blockchain and stablecoins, and resume cryptocurrency investment functions;
The new remittance service will allow users to send US dollars and specific stablecoins around the clock through a "well-known" blockchain network. Funds can be quickly converted into local currency and deposited into the recipient's account;
SoFi plans to restart cryptocurrency trading services later this year, allowing users to buy, sell and hold major cryptocurrencies such as Bitcoin and Ethereum, and may expand to services such as staking and crypto-asset mortgage loans in the future.
Why it matters
SoFi's return to crypto, after suspending all crypto-asset services in 2023 to obtain a banking license, marks a renewed embrace of digital assets by fintech companies under a more friendly regulatory environment under the new government. The latest guidance from the Office of the Comptroller of the Currency (OCC) allows nationally chartered banks to provide crypto custody and stablecoin-related services, providing regulatory support for SoFi's strategic shift. "The future of financial services is being completely reshaped by cryptocurrencies, digital assets and broader blockchain innovation," said CEO Anthony Noto. SoFi will use its Galileo platform to provide blockchain technology infrastructure to third parties, showing that it not only sees crypto services as a new source of revenue, but also positions them as a key component of its overall strategic transformation.
Taurus launches industry’s first privacy-enabled stablecoin contract, built on Aztec Network
Quick Highlights:
Digital asset infrastructure company Taurus (clients include Deutsche Bank and State Street) launches first privacy stablecoin contract, targeting financial institutions hesitant to use stablecoins due to privacy concerns;
The contract is built on Aztec Network, a privacy Ethereum layer 2 network supported by a16z, combining zero-knowledge proof privacy protection with compliance features similar to USDC, including minting/destruction controls, emergency pauses, etc.;
Why it's important:
Privacy stablecoins solve key barriers to institutional adoption. In the context of the GENIUS Act, innovations that balance privacy protection and compliance requirements will accelerate the application of stablecoins in corporate payments and treasury management.
Crypto platform Kraken launches Krak app, directly challenging Venmo and Cash App
Quick overview of key points:
Crypto exchange Kraken announced on Thursday the development of a financial services application called Krak, allowing global users to send and receive crypto and traditional currencies across borders at almost zero cost;
The application will support more than 300 assets and plans to launch physical and virtual debit cards in the coming weeks. The company will also provide credit services such as loans and credit cards;
Why it matters:
Crypto companies are accelerating the development of banking services, blurring the boundaries between digital assets and financial technology. Kraken's move will directly compete with traditional financial applications such as Revolut and Cash App, laying the foundation for revenue diversification for its planned IPO early next year.
Regulatory compliance
South Korea's eight major banks jointly plan to establish a Korean won stablecoin
Quick overview of key points:
Eight major Korean banks, including Kookmin Bank and Shinhan Bank, are jointly establishing a joint venture to issue the Korean won stablecoin, and the project has entered the infrastructure discussion stage;
The project is jointly promoted by the bank, the Open Blockchain and Decentralized Identifier Association, and the Korea Financial Telecommunications and Clearing Service, and is expected to be launched by the end of the year at the earliest;
The team is considering two issuance models: the trust model (issued after independent trust of customer funds) and the deposit token model (directly linked to bank deposits).
Why it’s important:
The large-scale entry of traditional financial institutions into the stablecoin field indicates that institutional-grade stablecoin solutions are becoming a focus of innovation in the financial system.
Hong Kong accelerates digital asset regulation layout, Stablecoin Ordinance launched in August
Quick overview of key points:
Hong Kong Financial Secretary Paul Chan announced that 10 virtual asset trading platform licenses have been issued, and another 8 applications are under review. At the same time, the legislation of stablecoins has been completed;
The Stablecoin Ordinance will come into effect on August 1, making Hong Kong one of the first jurisdictions in the world to establish a statutory regulatory framework for stablecoins;
Why it is important:
Hong Kong has demonstrated its strategic positioning and competitiveness in building a regulated digital asset center by clarifying the regulatory framework and simultaneously advancing exchange licenses and stablecoin regulation.
Hong Kong releases Digital Asset Policy Declaration 2.0 to build a global digital asset innovation center
Highlights:
The Hong Kong SAR Government announced the "LEAP" framework, designated the Securities and Futures Commission as the main regulator for digital asset trading and custody services, and will implement a stablecoin regulatory system on August 1;
The government plans to regularize the issuance of tokenized bonds (HK$6.8 billion of tokenized green bonds have been issued), clarify the exemption of stamp duty for tokenized ETFs, and explore the use of stablecoins for government payments;
Why it is important:
Hong Kong has built a full-scale ecosystem for digital assets through a unified regulatory framework and tax incentives, focusing on reshaping financial infrastructure and emphasizing the substantial benefits of digital assets to the real economy rather than speculation.
Bank for International Settlements: Stablecoins Failed Three Key Tests
Quick Overview of Key Points:
BIS report points out that stablecoins have failed three key tests of the monetary system: singularity, resilience and integrity, and believes that they cannot become the pillar of the future monetary system;
The report believes that although stablecoins have the advantages of programmability, pseudo-anonymity and low cost, they may undermine national monetary sovereignty through "implicit dollarization" and encourage illegal activities;
Why it matters:
The central bank's representative agency denied the status of stablecoins, but affirmed that the tokenization of traditional financial assets has transformative potential, suggesting future regulatory direction and policy attitudes.
Russian ruble stablecoin A7A5 has a trading volume of $9.3 billion in four months, suspected of circumventing sanctions
Quick overview of key points:
Financial Times investigation shows that the ruble-anchored stablecoin A7A5, launched by Moldovan oligarchs and the sanctioned Russian Defense Bank, has a trading volume of $9.3 billion since its launch in February;
Macro Trends
Ondo CEO: Stablecoins are just the tip of the iceberg, and the field of physical asset tokenization is maturing
Quick Highlights