When the license becomes a threshold, how can small and medium-sized enterprises participate in the future of stablecoins?

Welcome to the 14th issue of Cobo's Stablecoin Weekly Report.

Over the past week, discussions on stablecoin regulatory proposals such as the Genius Act have continued to heat up, and more and more observers have begun to realize that this is not just a regulatory reconstruction for financial technology, but more likely a policy design for the federal government to use stablecoins and indirect financing from the banking system under fiscal pressure - a variant of "invisible quantitative easing". Without directly expanding the balance sheet, the United States may try to release liquidity in the system while lowering financing costs by empowering compliant institutions to issue stablecoins and concentrate reserves to invest in government bonds.

This structural demand is driving banks and traditional financial giants to accelerate their entry and compete for dominance in the "Internet currency layer".

Take Circle's application for a trust bank license from the U.S. Office of the Comptroller of the Currency (OCC) as an example. The leading stablecoin issuers are trying to obtain key institutional entry tickets and control the full chain capabilities of issuance, custody and clearing. The stablecoin industry is entering a new stage defined by licenses, clearing networks and user scale, and the compliance threshold and market concentration are rising simultaneously.

In such a changing landscape, a question becomes increasingly important: where else can small and medium-sized enterprises and entrepreneurs get in?

In the view of Alex Zuo, senior vice president of Cobo, the ultimate ability of stablecoins lies in "accepting liquidity", that is, whether they can be widely used as an interface for on-chain services. Although the issuance is dominated by leading institutions, there are still a lot of gaps waiting to be filled in the "service layer" such as payment, clearing, and risk control. This is exactly the window for Web2 enterprises to use existing user relationships and business scenarios to get in.

Faced with the policy drive and industry reconstruction behind "invisible QE", the stablecoin ecosystem will evolve from the "asset layer" to the "service layer". In addition to the battle for licenses, greater opportunities are hidden in every detail of how to truly use stablecoins.

Market Overview and Growth Highlights

The total market value of stablecoins reached $255.201b (about $255.2 billion), a weekly increase of $2.415b (about $2.42 billion). In terms of market structure, USDT continues to maintain its dominant position, accounting for 62.42%; USDC ranks second, with a market value of $61.922b (about $61.9 billion), accounting for 24.26%.

Blockchain network distribution

The top three stablecoin networks by market value:

• Ethereum: $126.718b (US$126.7 billion)

• Tron: $80.855b (US$80.9 billion)

• Solana: $10.746b (US$10.7 billion)

Top 3 networks with the fastest weekly growth:

1. Story: +34.57% (USDC accounts for 99.99%)

2. This transformation is highly consistent with the stablecoin legislation being promoted in the United States. The draft of the "GENIUS Act" and other drafts have proposed that bank-level regulatory requirements will be implemented for large issuers. Circle's move is not only a forward-looking response to policy signals, but also aims to get rid of its dependence on the high-interest rate environment and gradually shift from interest rate spread drive to a service-oriented income structure such as custody and clearing. As the "first stock" of stablecoins, Circle attempts to establish a competitive barrier with institutional dividends. The market's disagreement on this strategic path may become the core variable of future valuation fluctuations.

   The future market competition for stablecoins will revolve around custody capabilities, clearing interfaces, compliance qualifications and service depth. Bank licenses are likely to become a necessary threshold for a few core participants in the next cycle.

   Stablecoins: The interweaving of "invisible QE" under the US fiscal abyss and the global dollar repatriation

   At present, the global financial market is closely following the progress of US stablecoin legislation. On the surface, these legislations are aimed at strengthening compliance and financial stability; however, BitMEX co-founder Arthur Hayes proposed a more subversive perspective: this may be an "invisible quantitative easing" (Invisible QE) to deal with the huge fiscal deficit and debt pressure in the United States. Arthur Hayes believes that bills such as the Genius Act do not simply promote market competition, but through regulatory design, they give "too big to fail" (TBTF) systemically important banks a dominant position in the stablecoin market, thereby building a new and hidden financing path for the federal government.

   Faced with an annual deficit of up to $2 trillion and a huge amount of national debt that is about to mature, it is difficult for the Federal Reserve to restart traditional quantitative easing, and the government urgently needs a new "blood transfusion" mechanism. Allowing banks to issue interest-free stablecoins and granting them regulatory exemptions (such as SLR exemptions) for purchasing short-term Treasury bonds (T-bills) enables banks to leverage large-scale purchases of Treasury bonds at extremely low funding costs, increase net interest margins, and thus play the role of "liquidity makers" and "treasury bond takers." This "atypical quantitative easing" indirectly releases potential liquidity in the financial system without significantly expanding the balance sheet, which not only supports the demand for Treasury bonds, but may also spill over to the risky asset market, push up asset prices, and ultimately increase the government's capital gains tax revenue. In Hayes' view, this is the "financialization" of blockchain dividends into rental income for banks, while the cost is borne by ordinary depositors, future taxpayers, and stablecoin innovators and entrepreneurs.

   Citibank's analysis adds nuanced insights to this grand narrative. Citi believes that the rise of US dollar stablecoins is more of a "reflection" of the US dollar's reserve status rather than a "consolidation" factor, and its growth will not unconditionally bring about net new demand for US Treasury bonds. The key lies in the source of funds: if the newly issued stablecoins are merely transfers from existing bank deposits or money market funds (MMFs), then from the perspective of the net increase in the entire financial system, there is no substantial increase in the demand for US Treasuries, and it is merely an "internal transfer" of funds between different financial products. Citi emphasizes that only when stablecoins can attract "incremental funds" that were not originally invested directly in US Treasuries, such as the reallocation of US dollar cash, the reallocation of global M0 (base currency), and the reallocation of foreign-held deposits, can the demand for US Treasuries be substantially increased.

   This is where Tether's unique strategy as the world's largest stablecoin issuer may play a role. Tether not only invests most of its reserve assets in US Treasuries, but also aims to earn offshore US dollar profits in its large-scale infrastructure layout in the global south (such as mining, AI, football clubs, and agriculture). When these US dollar profits earned overseas are repatriated by Tether and used to purchase US Treasuries, they meet the incremental US Treasury demand brought about by the "reconfiguration of foreign-held deposits" defined by Citi. This makes Tether not only an issuer of US dollar stablecoins, but also an indirect but continuous "incremental buyer" in the US Treasury market through its global investment and profit network.

   To sum up, the future picture of US stablecoins is multi-dimensional and complex. Arthur Hayes' theory reveals the deep driving force behind legislation to deal with fiscal deficits and the "invisible QE" role played by banks in it; Citibank provides a detailed analysis of the impact of stablecoins on US Treasury demand, distinguishing between "diversion" and "increment"; and Tether's global strategy vividly demonstrates how to bring funds that meet the definition of "increment" to the US Treasury market through the circulation of offshore US dollars.

   Alex Zuo, Senior Vice President of Cobo: How can Web2 find an entry point for the reconstruction of the stablecoin landscape?

   As stablecoins are gradually embedded in the mainstream financial system, a new landscape dominated by licenses, clearing networks and user scale is taking shape. Head crypto companies such as Circle and Ripple have successively applied for banking licenses, intending to master the full-chain capabilities of issuance, custody and clearing; traditional banks and large technology companies are accelerating their entry, relying on existing infrastructure and market share to compete for the strategic heights of the "Internet currency layer". The stablecoin industry is entering a stage where compliance barriers and market concentration are rising simultaneously.

   Against this background, a core question emerges: In an industry landscape where financial attributes are increasingly enhanced and license thresholds are constantly rising, where is the space for small and medium-sized enterprises and entrepreneurs to participate?

   In the view of Alex Zuo, senior vice president of Cobo, the ultimate ability of stablecoins lies in "undertaking liquidity and realizing service implementation". Its future value does not lie in anchoring the US dollar itself, but in whether it can become an efficient interface for on-chain capital flow and financial services. At present, from the perspective of issuance, stablecoins are still mainly dominated by large institutions, but as they enter commercial and financial scenarios on a large scale, they will give rise to a series of new demands around circulation, settlement, integration and management, opening a real entry window for entrepreneurs.

   This is the structural opportunity for Web2 enterprises. Compared with crypto-native companies, they understand real business scenarios better and have systematic advantages such as CRM capabilities, distribution channels and user networks. In high-frequency businesses such as cross-border e-commerce, games, supply chain finance, and content creation, stablecoins have the natural adaptability to embed capital flows in a low-cost and efficient manner.

   However, the underlying structure of Web3 is still extremely complex: account systems, smart contracts, inter-chain compatibility, cross-border clearing, anti-money laundering and regulatory compliance are not something that can be dealt with by a single breakthrough. This constitutes a double barrier in technology and compliance for most Web2 teams.

   Therefore, Alex Zuo believes that the large-scale application of stablecoins must rely on the trinity of technology, compliance and distribution capabilities. Cobo's role is to become the "underlying capability provider" for these companies: through API and modularization, it outputs key capabilities including on-chain wallets, capital risk control, and legal currency settlement, so that Web2 companies can quickly and securely embed Web3 financial systems without building their own infrastructure. From cross-border collection to on-chain account management, Cobo is becoming a key interface for traditional companies to connect to the world of stablecoins.

   Market Adoption

   Coinbase actively promotes the application of USDC payment and financial services, and the proportion of non-transaction revenue has climbed to 42%

   Quick Overview of Key Points

   • According to Bernstein’s latest report, Coinbase is going beyond the role of USDC distributor and becoming a key driver for the adoption of stablecoins in payment and financial services;

   • The company launched Coinbase Payments through cooperation with Stripe and Shopify, and launched Coinbase Business for startups and small companies. Both services are based on Circle’s USDC stablecoin;

   • Coinbase’s Base blockchain has hosted more than $3.7 billion in USDC and processed $6.8 trillion USDC settlement volume, and established a new revenue sharing agreement with Circle, with USDC held directly receiving 100% interest income and USDC held outside the platform divided 50:50.

   Why it matters

   Stablecoins have become a core source of revenue for Coinbase, with non-trading revenue growing from $181 million in 2020 to $2.8 billion in 2024. This strategic shift shows that the company is building a long-term growth engine beyond the trading business by expanding the utility of USDC in the payment and DeFi fields.

   Huaxia Fund Hong Kong participates in the exploration of stablecoin applications, and multiple institutions deploy integrated services

   Quick overview of key points

   • Gan Tian, ​​CEO of Huaxia Fund (Hong Kong), revealed that the company is participating in the exploration of the integrated application of stablecoin "payment + redemption + asset management", and stablecoin has entered the practical operation stage from the concept verification stage;

   • Multiple institutions are simultaneously conducting stablecoin application exploration. At present, the stablecoin business is at a critical critical point of "basic rules have been determined and application scenarios are waiting to explode";

   • Gan Tian predicts that the global monetary system may converge to a few mainstream stablecoins in the future, but this process needs to be supported by strong financial markets and trade scenarios.

   Why it is important

   The active deployment of stablecoin business by traditional asset management giants shows that financial institutions are accelerating their embrace of virtual asset innovation. China Asset Management Hong Kong, as an asset management company with Chinese background, participates in the exploration of stablecoins, which represents that Chinese financial institutions are actively seeking strategic transformation under the Hong Kong virtual asset regulatory framework, providing important institutional support for the expansion of stablecoin application scenarios.

    Swiss AMINA Bank Becomes the First Global Bank to Support Ripple's RLUSD Stablecoin

   Quick Overview

   • Swiss crypto-friendly bank AMINA announced that it will provide services for Ripple's US dollar stablecoin RLUSD, becoming the world's first international bank to support this stablecoin;

   • The bank will initially provide RLUSD custody and trading services to institutional clients and professional investors, and plans to expand more services in the coming months;

   • RLUSD is backed by U.S. Treasuries and regulated by the New York Department of Financial Services. The current supply is $430 million. It is Ripple's recently launched stablecoin pegged to the US dollar.

   Why it is important

   As stablecoins are increasingly becoming an important part of the financial system and payment field, and the global regulatory framework is gradually improved, AMINA Bank's move marks that the traditional banking industry has begun to actively accept compliant stablecoin products, providing institutional investors with emerging financial instruments under regulatory protection, and further promoting the integration of crypto assets and traditional finance.

   New Product Express

   Peter Thiel and others jointly applied for a crypto bank license, targeting the startup market

   Quick Overview of Key Points

   • Technology billionaires such as Palmer Luckey, Peter Thiel and Joe Lonsdale applied to establish a new bank, Erebor, aiming to fill the market gap left by the collapse of Silicon Valley Bank and focus on serving technology startups and crypto companies;

   • The bank will take stablecoin trading as its core business and explicitly stated that it will become "the most strictly regulated entity in stablecoin trading", establish trust advantages by embracing regulation, and provide high-risk innovative companies with financial services with controllable risks;

   • Erebor It mainly serves companies in the fields of virtual currency, AI, defense and manufacturing. It continues Thiel's tradition of naming companies after Tolkien's works. It will be co-led by former Circle consultant Jacob Hirshman, highlighting the stablecoin operation experience.

   Why it is important

   The establishment of Erebor marks that the deep commitment of technology capital to the encryption field has been upgraded from the venture capital level to the construction of financial infrastructure. This regulatory-friendly banking model may become a new paradigm for the integration of traditional finance and the digital economy. Stablecoins, as a bridge connecting the two, will gain stronger institutional support and market trust.

   Binance Pay launches contact transfer and on-chain transfer functions to simplify the cryptocurrency transfer process

   Key points

   • Binance Pay has added a contact transfer function. Users do not need to enter a wallet address, email or Binance ID. They can transfer more than 300 cryptocurrencies directly to mobile contacts without charging gas fees.

   • At the same time, an on-chain transfer solution is launched. Users only need to scan a QR code or take a photo of a wallet address to complete the on-chain transfer, without manually entering the address or performing complex network operations.

   • These two functions have greatly simplified the cryptocurrency transfer process and reduced the risk of transfer errors. In particular, the gas-free feature of contact transfers has improved the economy of small transfers.

   Why it’s important

   Binance has solved the pain points in the use of cryptocurrencies through these user-friendly features, lowering the threshold for new users, and is expected to promote the popularization of encrypted payments in daily scenarios. In particular, the direct transfer function between contacts will bring the cryptocurrency transfer experience closer to traditional payment applications.

   BlueYard research director launches FreePay to enable tap payments

   Quick overview of key points

   • Tim Robinson, head of crypto research at venture capital firm BlueYard, developed the open source payment processor FreePay in just one week, which supports cryptocurrency payments via NFC taps, without having to pay processing fees for traditional credit cards and terminals such as Square;

   • FreePay includes an NFC reader and a screen for merchants to enter the amount. It currently only supports MetaMask and Coinbase wallets. Robinson has developed a matching merchant application and Android client application;

   • Unlike traditional payment processors such as Visa, MasterCard and American Express that charge 1%-2.5% transaction fees, FreePay uses Ethereum Low-fee blockchains such as L2 and Solana significantly reduce costs for merchants and consumers.

   Why it matters

   The crypto industry has recently embraced traditional financial payment systems, but this is contrary to the original intention of cryptocurrency decentralization. Open source payment tools such as FreePay provide the industry with an alternative that is more in line with the original concept of blockchain, refocusing on the core value of cryptocurrency, providing merchants and consumers with lower-cost, decentralized payment options, especially for industries that traditional banks refuse to serve.

   Tether CEO's open source password manager PearPass starts testing and will soon be open source

   Key points

   • Tether CEO Paolo Ardoino announced that the open source password manager PearPass is currently in internal testing and will soon be open source on the pears.com platform, providing a fully localized password management solution that supports P2P synchronization between devices;

   • PearPass will support mobile, desktop and browser extensions, allowing users to import passwords from other managers, reflecting the Web3 concept of user autonomy and open source security;

   • PearPass is developed based on Holepunch's Pear platform, which is a P2P Development and runtime framework, allowing developers to build peer-to-peer applications without traditional infrastructure, eliminating the development cost barrier.

   Why it matters

   This move shows that the stablecoin giant is applying blockchain concepts to a wider range of tool development. As the underlying platform, Pear allows applications to be loaded and shared directly from peer nodes, providing PearPass with a decentralized infrastructure that enables synchronization between devices without relying on a central server. This represents the expansion of the crypto industry from finance to everyday application tools, while promoting the popularity of infrastructure-free P2P applications, providing users with safer and more private data management options.

   Macro Trends

   RLUSD's half-year funding increased by 604%, but 83% of its circulation was deployed on the Ethereum chain

   Quick Overview of Key Points

   • Ripple's stablecoin RLUSD's circulation market value surged from US$50 million to US$348 million in the first half of the year, an increase of 604%, and its market value ranking jumped from 36th to 17th, becoming one of the fastest growing emerging stablecoins;

   • Despite supporting a multi-chain architecture, more than 83% of RLUSD's circulation is concentrated on the Ethereum chain, rather than Ripple's own XRP Ledger, indicating that market participants prioritize liquidity rather than technical nativeness;

   • Why it matters

     Stablecoin competition is shifting from single-chain performance to multi-chain deployment and cross-chain liquidity coordination capabilities. This trend shift will reshape stablecoin issuance strategies and prompt project owners to prioritize ecological integration rather than technical performance.

     Stripe acquires crypto infrastructure company, traditional payment giant lays out full-stack digital asset services

     Quick Overview of Key Points

     • Payment giant Stripe recently spent billions of dollars to acquire crypto infrastructure companies Privy and Bridge, marking the accelerated integration of crypto and traditional finance. In the future, finance will combine the advantages of both to build a seamless infrastructure

     • HashKey Capital and HashKey OTC Global CEO Deng Chao believes that the current crypto infrastructure is fragmented. Stripe may still face service discontinuities, compliance gaps and integration challenges by patching together solutions through acquisitions;

     • Those who truly seize the crypto opportunity will be companies that build an integrated ecosystem from scratch. A complete crypto infrastructure requires compliant trading capabilities, asset tokenization services, cloud infrastructure, and AI. Risk control tools and seamless custody solutions.

     Why it’s important

     The inflection point of the integration of crypto and traditional finance has arrived, and the future will be dominated by compliant integrated platforms that can provide a full range of financial services. With instant global settlement, programmable payment terms and simplified cross-border commerce becoming standards, the industry is moving towards a direction where users can enjoy the advantages of crypto without having to understand the underlying technology. If crypto-native platforms can solve integration problems and maintain regulatory compliance, they are expected to define the next decade of integrated financial services.

     Regulatory compliance

      Ripple applies for a US banking license and a Fed master account, strategically laying out a new era of stablecoin regulation

     Key points

     • Ripple applies for a national banking license from the OCC, which will make its stablecoin RLUSD subject to both state-level regulation by the New York Department of Financial Services and federal regulation by the OCC, creating the industry's first dual-regulatory model and setting a new standard for stablecoin compliance;

     • Subsidiary Standard Custody & Trust Company applies for a Fed master account, which will enable it to directly custody reserves at the Fed and issue and redeem stablecoins during non-banking hours, greatly improving operational flexibility;

     • With the release of Genius Ripple's proactive embrace of dual regulation and pursuit of a direct relationship with the Federal Reserve represents an important step in the integration of crypto finance into the traditional financial system. This shift not only enhances the market trust of RLUSD, but may also set new standards for stablecoin regulation, help attract more institutional investors waiting for clear regulation to enter the market, and demonstrate a new path for crypto companies to promote the mainstreaming of the industry through compliance.

       ECB to launch blockchain euro settlement system in 2026, connecting DLT and TARGET services

       Key points

       • ECB approves dual-track plan to realize central bank currency settlement of DLT transactions, of which the short-term plan "Pontes" will be piloted before the third quarter of 2026, connecting the blockchain platform with the euro zone TARGET core payment service;

       • The plan is based on the results of more than 50 DLT trials completed in 2024, involving 64 participating institutions, successfully settling 1.6 billion euros in transactions, confirming the market's strong demand for tokenized assets for central bank currency settlement;

       • The long-term plan "Appia" is committed to building a comprehensive European ecosystem and promoting safe and efficient global operations. The ECB We will continue to study the application of DLT in wholesale central bank settlement and work closely with public and private sector partners.

       Why it is important

       This move marks the ECB's official integration of blockchain technology into core financial infrastructure. DLT is expected to reduce capital market fragmentation and inefficiency, achieve atomic programmable settlement, lay the foundation for the modernization of the European financial system, and herald a major change in the global payment and securities settlement infrastructure.

       Deutsche Bank DWS joins hands with Galaxy and others to launch Germany's first regulated euro stablecoin EURAU

       Quick Overview of Key Points

       • AllUnity, a joint venture between Deutsche Bank's asset management subsidiary DWS, Flow Traders and Galaxy, obtained the Electronic Money Institution (EMI) license from the German Financial Supervisory Authority (BaFin) this week and will issue Germany's first regulated euro stablecoin EURAU;

       • EURAU will fully comply with the European Crypto-Assets Markets Act (MiCA) framework, be 100% collateralized and provide institutional-level transparency through proof of reserves and regulatory reports

       • The stablecoin can be used for instant cross-border settlement around the clock, providing seamless integration for regulated financial institutions, fintech companies and corporate clients in Europe and other regions.

       Why it matters

       EURAU joins the growing camp of euro stablecoins, including Circle's EURC and Societe Generale's EURCV, marking the acceleration of traditional financial giants' entry into the compliant digital currency market. This trend will lay the foundation for the modernization of Europe's cross-border payment system while promoting the competitiveness of the euro in the international digital payment field.

       French Bitcoin savings app Bitstack becomes the first French company to obtain a MiCA license

       Quick Overview

       • With the assistance of De Gaulle Fleurance law firm, French Bitcoin savings app Bitstack has become the first French company to obtain a Crypto Asset Service Provider (CASP) license under the European Crypto Asset Markets Act (MiCA);

       • The license was obtained through a formal application procedure rather than a transitional fast track, allowing Bitstack to operate legally in all EU member states, laying the foundation for its European expansion;

       • Bitstack has accumulated more than 200,000 users in France, providing automatic change investment for daily consumption, regular Bitcoin purchases, purchases with a minimum of 1 euro, and P2P Bitstack's MiCA license marks the official launch of the EU's crypto regulatory framework, which will enable crypto companies to operate across borders under unified regulations, reduce expansion costs and reduce legal uncertainty. As the first French company to apply directly through the new MiCA system, Bitstack has taken the lead in reshaping the European crypto financial competition landscape.

         Hong Kong Financial Secretary: Stablecoin is a financial development tool rather than a money-making tool. The regulatory regulations will take effect on August 1

         Key points

         • Hong Kong's "Stablecoin Ordinance" has been passed by the Legislative Council and will officially take effect on August 1, establishing a licensing system for issuers of legal currency stablecoins, which has become the focus of market attention;

         • Financial Services and the Treasury Bureau Director Paul Chan emphasized that digital assets are the general trend, and stablecoins are not a tool for making money, but a financial development tool to improve the efficiency and speed of financial activities;

         • Faced with questions about the possibility that stablecoins may undermine international monetary sovereignty, Xu Zhengyu said the government is fully aware of the relevant risks. The regulations require issuers to hold a certain amount of capital or reserves and regulate the redemption time of stablecoins to ensure that buyers can redeem the currency.

         Why it is important

         The launch of Hong Kong's stablecoin regulatory framework demonstrates that the financial center has adopted a clear and balanced approach to digital asset regulation, which recognizes the value of blockchain financial innovation in improving the efficiency of the real economy, and ensures system security through licensing systems and reserve requirements. This will help Hong Kong occupy a favorable position in the development of global stablecoins and digital assets.

         BoE Governor Warns: Stablecoins Threaten Public Trust in Money

         Quick Overview of Key Points

         • BoE Governor Andrew Bailey warned that the rise of stablecoins could undermine public trust in money, and the central bank needs to "pay close attention" to the vulnerabilities that payment innovations may bring to the monetary system;

         • Bailey will put the potential risks of stablecoins on the agenda after becoming the new chairman of the Financial Stability Board, with a special focus on the "digital dollarization" that may be caused by US dollar stablecoins;

         • The United States passed landmark stablecoin legislation last month, and U.S. Treasury Secretary Scott Bessent believes this will help consolidate the dollar's status as a global reserve currency, especially as the Trump administration reshapes the global economic order.

         Why it matters

         Global central banks are increasingly concerned about stablecoins, especially their potential threat to monetary sovereignty and financial stability. As the United States advances stablecoin legislation, international financial regulators are reassessing the function of official foreign exchange reserves and the impact of stablecoins on the liquidity of the global financial system under extreme market pressure.