Original Title: "Cobo Stablecoin Weekly NO.17 | Stablecoins Impact on the U.S. Banking System, PayPal Builds a Decentralized Payment Architecture"

Welcome to the 17th issue of the Cobo Stablecoin Weekly.

The passage of the "GENIUS Act" marks a new phase in U.S. crypto legislation. The controversy surrounding the "CLARITY Act" in both the House and Senate reveals two regulatory philosophies: one focuses on functional definitions and universality, while the other emphasizes financial nesting and the stablecoin system itself.

In response to the impact of stablecoins, the banking system is beginning to react, evolving towards modularity and interface integration by restructuring distribution paths, introducing on-chain credit collateral, and outsourcing interest generation to tokenized assets, adapting to an era where on-chain assets participate in liquidity generation.

PayPal has chosen to bypass banks, directly building a unified interface between digital assets and cash flows. In the future, it may package clearing, currency exchange, user entry, and merchant networks through PYUSD and PayPal World, attempting to establish a crypto-native payment stack that does not require bank intermediaries.

In the rapidly flowing capital landscape, value is shifting from intermediary fees and scarcity to speed, composability, and network effects. A new financial order is being restructured between interfaces.

Market Overview and Growth Highlights

The total market capitalization of stablecoins reached $265.217 billion, with a week-on-week increase of $4.502 billion. In terms of market share, USDT continues to dominate with a 61.8% share; USDC ranks second with a market cap of $64.807 billion, accounting for 24.44%.

Blockchain Network Distribution

Top three networks by stablecoin market cap:

1. Ethereum: $132.37 billion

2. Tron: $81.992 billion

3. Solana: $11.592 billion

Top 3 networks with the fastest weekly growth:

1. TON: +7.85% (USDT share 79.49%)

2. Hedera: +6.96% (USDC share 99.86%)

3. Polygon: +5.60% (USDT share 43.29%)

Data from DefiLlama

From Distribution to Credit Creation to Financial Engineering: Stablecoins Penetrate the Banking System

With the implementation of the "GENIUS Act," stablecoins are beginning to penetrate the core structure of the traditional banking system.

The partnership between PNC and Coinbase marks the formal endorsement of stablecoins as a "distribution channel" by traditional financial institutions, allowing customers to buy, sell, and custody crypto assets directly through the bank interface. Meanwhile, the tokenized money market fund launched by Goldman Sachs and BNY Mellon atomizes and migrates the traditional financial core asset of "dollars + government bonds" onto the blockchain, shifting the role of banks from passive custodians to active issuers of native on-chain assets. Stablecoins are rewriting the technological structure at the front end of banking, redefining the entry standards for "programmable dollars."

More structurally significant is JPMorgan's plan to include Bitcoin and Ethereum in its collateral list for issuing dollar loans. This action essentially incorporates on-chain assets into the M2 generation path, allowing crypto assets to participate in the bank's credit creation system. When on-chain assets become the collateral basis for dollars, stablecoins are no longer the "digital shadow" of traditional finance but part of the currency creation system.

Anchorage's USDtb model showcases a sophisticated financial engineering design. The USDtb issued by Anchorage does not directly bear income promises but outsources interest generation to BlackRock's tokenized money market fund product BUIDL, transmitting the returns to token holders through custodial logic. This architecture cleverly redefines "interest" as a natural attribute of the underlying assets rather than a legal obligation of the stablecoin itself, thereby circumventing the SEC's regulatory definition of "yield-bearing tokens." In this model, stablecoins essentially become a "yield encapsulation interface," reconstructing functional relationships within regulatory gaps.

This series of evolutions reveals a trend: if banks are to embrace stablecoins, they must accept functional decoupling and layered design. The traditional integrated financial system is being dismantled into reconfigurable on-chain modules for compliance, yield generation, custody, and trading.

Stablecoins are forcing the banking system to evolve into a modular, programmable financial infrastructure. A set of financial Lego blocks that can be reconfigured at will represents the possible state of future banking.

PayPal Launches Global Payment Interconnection Platform PayPal World, Incorporating Stablecoins and AI Agent Shopping into Strategic Blueprint

PayPal has announced the launch of the global payment interconnection platform PayPal World, aimed at reshaping the structure of cross-border payment networks and global business interaction paradigms. As a "payment network aggregator," PayPal World initially integrates Mercado Pago, India's UPI, WeChat Pay International Tenpay Global, as well as its own PayPal and Venmo, covering nearly 2 billion consumers and merchants worldwide. By unifying and integrating multiple "walled gardens," merchants can access global reach in one go, significantly lowering the technical barriers for payment compatibility; users can also complete cross-border transactions within local payment tools without switching apps.

The key to this product integration lies in PayPal's first-time fusion of the P2P-focused Venmo with the B2C commercial payment network, bridging personal and merchant scenarios to form a collaborative closed loop. Through PayPal World, this integration further expands globally, making personal cross-border remittances as smooth as sending a message, while merchants can receive funds from any payment ecosystem in real-time, achieving an account-to-account (A2A) clearing path.

This evolution relies on the modernization of payment infrastructure driven by cloud computing and API standardization. By deconstructing high-cost intermediaries (agent banks, card organizations, SWIFT, etc.) in the traditional payment chain, PayPal is moving from a mesh interconnection to a lower-friction, more programmable A2A architecture. Looking ahead, the next phase may migrate on-chain, building more automated, round-the-clock, low-cost clearing and settlement channels to serve new settlement entities like AI agents.

From a historical long-cycle perspective, the value logic of finance is shifting: from an arbitrage mechanism reliant on geographical barriers and physical frictions to an efficiency paradigm centered on compressing "funds in transit time." PayPal World is a structural response to this trend. In this new paradigm, stablecoins will become the infrastructure. If A2A is the starting point, then stablecoins are the extension of the path, with the ultimate goal being a high-frequency, low-latency, composable capital network.

PayPal has clearly advanced its stablecoin strategy and AI Agent payment layout, even actively sacrificing traditional fiat currency float income to incentivize users to convert their balances into PYUSD, enhancing ecosystem stickiness and capital liquidity. Its growth model is also evolving from fee-driven, stock income to high-frequency circulation and network dominance.

The significance of PayPal World can be understood as an experiment in "post-friction capitalism." In this phase, value no longer derives from possessing scarce resources or charging intermediary fees, but from the speed of capital flow, composability, and network effects. The traditional payment bundle (clearing, settlement, currency exchange, fees) is being deconstructed (Unbundle) and then rebuilt (Re-bundle) around digital assets (like PYUSD) and unified interfaces (like PayPal World).

U.S. Crypto Regulation Approaches a Fork in the Road, Divergence in Regulatory Philosophy Behind the CLARITY Act

With the "GENIUS Act" establishing a regulatory framework for stablecoins, U.S. crypto legislation is entering the next phase. The recent passage of the "Digital Asset Market Clarification Act" (CLARITY Act) in the House attempts to further clarify regulatory boundaries, establishing a set of division standards centered on "control": imposing strict regulations on platforms that hold user assets and have intermediary characteristics, requiring them to comply with KYC, AML, and fund segregation; while granting exemptions to truly decentralized protocols that interact directly with users and smart contracts, reflecting a structural response to FTX-style risks.

The Senate's draft presents another regulatory philosophy. This version introduces the concept of "ancillary assets," referring to tokens that, although issued through investment contracts, do not themselves contain equity or income rights. Issuers can self-certify to the SEC that they are not securities, and if the SEC does not object within 60 days, they can be treated as commodity assets. Compared to the House's emphasis on control and platform roles, the Senate focuses more on whether the tokens themselves possess financial rights attributes, leaning towards providing operational compliance pathways for issuers.

The divergence between the two chambers in defining standards essentially reflects different judgments on "what should be regulated": whether it is the concentration point of regulatory power or the financial attributes of the assets. This divergence not only involves ideology but also directly affects the allocation of authority among regulatory agencies—the House version is led by the CFTC, while the Senate retains the SEC's preliminary screening authority. Future regulation may not be a single framework but could present a multi-layered system based on rights structures, governance methods, and asset attributes.

Ultimately, the two chambers will reach a compromise text before Congress reconvenes in September. Even if the final legislation does not pass quickly, this round of negotiations has revealed a layered trend in U.S. digital asset regulation—after stablecoins, core areas such as DeFi, ICOs, and platform intermediaries will gradually enter institutional tracks, and the path chosen will determine the direction and discourse power of the U.S. in the global crypto financial order.

Market Adoption

Polygon USDC Transfer Volume Soars 141%, Growth Mainly from South America

Key Points:

• Since the beginning of this year, small USDC transfers (under $1,000) on the Polygon network have surged by 141%, surpassing Solana to become the primary blockchain for processing small USDC payments.

• Aishwary Gupta, Global Head of Payments and Physical Assets at Polygon Labs, stated that the significant increase in transaction fees on the Tron network (rising from $3.3 a year ago to over $7 now) has prompted users to seek alternatives, while USDC transfers on Polygon cost only a fraction of a cent.

• The growth is primarily driven by users in South America, particularly in Argentina and Brazil, where nearly 50% of stablecoin transfers in Argentina use USDC.

Why It Matters:

In the context of a 27% expansion in the stablecoin market this year, reaching a historic high of $262 billion, Polygon is repositioning itself as a platform for payment and tokenization of physical assets. Although Tron still accounts for 60% of stablecoin trading volume, with over $81 billion in stablecoins, and Polygon only has $2.8 billion, the high transaction fees on Tron have created market opportunities for Polygon, especially in the realm of daily small payments in developing countries. With S&P predicting that the stablecoin market will reach $2 trillion by 2028, and Bernstein estimating it could grow to around $4 trillion in the next decade, Polygon's payment strategy may position it favorably as Wall Street and traditional financial institutions enter the stablecoin space.

U.S. Seventh Largest Bank PNC Partners with Coinbase

Key Points:

• PNC Bank, with $557 billion in assets, has announced a strategic partnership with crypto exchange giant Coinbase, aimed at expanding digital asset solutions for PNC customers (including institutional investors) and enhancing banking services.

• PNC customers will soon be able to buy, hold, and sell cryptocurrencies directly through the PNC bank interface, supported by Coinbase's institutional-grade "Crypto as a Service" (CaaS) platform, ensuring secure transactions and custody.

• As part of the reciprocal partnership, PNC will provide its top-tier banking services to Coinbase, while Coinbase will contribute its expertise in crypto trading and custody tools, complementing each other's strengths to enhance customer experience.

Why It Matters:

• This partnership marks a significant milestone in the trend of integration between traditional finance and the crypto industry, as the seventh largest bank in the U.S. joins the crypto service space, greatly enhancing the accessibility and legitimacy of digital assets within the mainstream financial system. Following large banks like JPMorgan exploring crypto asset services, PNC's move further confirms that the U.S. banking sector is accelerating its embrace of digital assets, providing convenient access to cryptocurrencies for both retail customers and institutional investors, which will significantly expand the potential user base for cryptocurrencies.

Global Remittance Giant Western Union Explores Launching Stablecoin Services in Digital Wallets

Key Points:

• Global remittance giant Western Union is seeking to integrate stablecoins into its digital wallet infrastructure. CEO Devin McGranahan stated in an interview with Bloomberg that the company is exploring partnerships to offer stablecoin deposit and withdrawal services.

• McGranahan noted that Western Union views stablecoins as an opportunity rather than a threat, and the company is assessing how to provide stablecoin products to customers through its global digital wallet.

• Western Union sees three key opportunities for stablecoin services: enabling faster cross-border transfers, facilitating conversions between stablecoins and fiat currencies, and providing value storage for customers in volatile economies.

Why It Matters:

• Following President Trump's signing of the GENIUS Act, stablecoins have gained mainstream recognition. Western Union's entry into the stablecoin space as a leader in the traditional remittance industry demonstrates the acceleration of the financial services industry's transition to digital assets. The GENIUS Act establishes a federal regulatory framework for stablecoins, requiring them to be fully backed by U.S. dollars or other highly liquid assets, and sets annual audit requirements for issuers with a market cap exceeding $50 billion. The embrace of stablecoins by Western Union, a traditional financial giant with a 175-year history, will bring significant changes to the cross-border payment market, particularly providing more stable and faster financial service options for customers in volatile economies.

Macro Trends

Quiet Financial Transformation in Latin America, Cryptocurrencies Provide Freedom for the Unbanked

Key Points:

• Chainalysis's 2024 report shows that strict capital controls and inflation rates exceeding 100% in countries like Argentina and Venezuela are driving cryptocurrency adoption, with the public increasingly relying on digital wallets and stablecoins to access U.S. dollars.

• The unbanked account rate in Latin America is staggering, with over 50% in Mexico and 43% in Peru, and cryptocurrencies provide these groups with financial service channels that bypass traditional banking systems.

• A lack of financial literacy and regulatory uncertainty are major obstacles, making community education and clear policy frameworks crucial. Brazil and Colombia have established licensing systems for Virtual Asset Service Providers (VASPs).

Why It Matters:

• Cryptocurrency adoption in Latin America is fundamentally changing the financial landscape, providing financial freedom to low-income, rural, and minority groups that have long been excluded from the traditional banking system. As governments in countries like Mexico and Brazil collaborate with crypto companies to develop regulatory frameworks, and regions like Costa Rica develop "crypto tourism," digital assets are expected to lower cross-border payment costs (currently as high as 6.4% for remittances from the U.S.) and increase financial inclusivity. This trend has significant implications for economic independence and reducing wealth disparities in Latin America, but whether a truly inclusive infrastructure can be built remains a key challenge.

BofA Predicts GENIUS Act Will Drive $75 Billion Growth in Stablecoin Market

Key Points:

• A Bank of America report states that with President Trump's signing of the GENIUS Act, U.S. stablecoin regulation is at a turning point, with stablecoin supply expected to grow by $25 to $75 billion in the short term.

• Banks are preparing to issue their own stablecoins, leaning towards a consortium model. BofA CEO Brian Moynihan stated that the bank is ready to enter the stablecoin market at the appropriate time.

• Analysts expect consolidation in the stablecoin industry within the next 2-3 years, which will drive broader adoption of stablecoins and other tokenized assets following the passage of the CLARITY Act.

Why It Matters:

• The GENIUS Act is driving a transformation in the U.S. financial system, and the entry of banking giants will reshape the stablecoin market landscape. The growth in stablecoin reserves could impact demand for U.S. Treasury securities, prompting the Treasury Department to adjust its short-term debt issuance strategy. Although cross-border applications are gradually emerging, most bank executives believe that stablecoins will not disrupt the domestic payment system in the short term. The current total market value of the stablecoin market is approximately $270 billion, and the growth predicted by BofA represents an increase of 9-28%, reflecting financial institutions' optimistic outlook on market prospects following regulatory clarity.

New Product Updates

Circle's USYC Becomes Off-Market Yield-Generating Collateral for Binance Institutional Clients

Key Points:

• Circle has announced a partnership with Binance, allowing its yield-generating U.S. Treasury token USYC to serve as collateral for off-market derivative trading for Binance's institutional clients, mimicking traditional financial market practices.

• USYC will be held through Binance Banking Triparty or its institutional custody partner Ceffu and will be natively issued on the BNB Chain, enabling users to explore the on-chain world more seamlessly.

• USYC offers near-instant interchangeability with USDC, enhancing capital efficiency and allowing users to convert between tokenized cash and Treasury securities in near real-time, meeting the market trend of doubling demand for U.S. Treasury tokenization since 2025.

Why It Matters:

• This collaboration represents a significant step toward aligning the institutional crypto market with traditional financial practices. The integration of Circle's Treasury token USYC with the world's largest exchange, Binance, provides institutional investors with new avenues for optimizing collateral management and generating yields while promoting the expansion of the tokenization ecosystem for physical assets. This trend showcases the accelerated convergence of crypto finance with traditional financial infrastructure, particularly in the innovation of capital market tools.

Square Begins Rolling Out Bitcoin Payment System, Aiming for Full Adoption by 2026

Key Points:

• Square, founded by Jack Dorsey, has begun rolling out Bitcoin payment features for its merchant network, with the first batch of merchants now able to accept BTC payments via the Lightning Network.

• Payments are settled in near real-time through the Bitcoin Layer 2 solution, Lightning Network, with Square handling the conversion from BTC to fiat, lowering the barrier for merchants to use.

• Square plans to make this service available to all merchants using its sales terminals by 2026, having piloted the system at the Bitcoin 2025 conference in Las Vegas this past May.

Why It Matters:

• Square is positioning the Lightning Network as the core technology to accelerate the adoption of Bitcoin payments, addressing the historical challenge of slow payment speeds associated with Bitcoin. The Lightning Network allows transactions to be processed off the main chain by creating micropayment channels, significantly increasing transaction speed and reducing costs. As a payment giant, Square's move will significantly promote the practical application of Bitcoin as a daily payment tool, providing millions of merchants with crypto payment options while lowering the technical barriers for merchants to accept cryptocurrencies, potentially marking a significant milestone in the mainstreaming of Bitcoin payments.

Circle Launches Circle Gateway, Achieving Unified USDC Cross-Chain Balance Infrastructure

Key Points:

• Circle has launched the Gateway service, allowing users to instantly access a unified USDC balance across Avalanche, Base, and Ethereum testnets without traditional cross-chain bridging or pre-deployed funds.

• The service offers 500 milliseconds of fast cross-chain access while maintaining a non-custodial nature, allowing users to retain full control over their USDC, with funds only movable through user signatures.

• Circle plans to launch this service on the mainnet soon and has developed a comprehensive chain expansion roadmap, with plans to support more blockchain networks in the future.

Why It Matters:

• Circle Gateway serves as a new cross-chain infrastructure that addresses the main pain points of current DeFi cross-chain operations. By providing liquidity across multiple chains through a single integration, it significantly reduces operational capital requirements and improves capital efficiency. This service represents a major advancement in stablecoin infrastructure, significantly enhancing user experience and reducing cross-chain operational risks. Given USDC's dominant position in the crypto payment space, this innovation could become a key driver in promoting interoperability standards for Web3 cross-chain solutions.

Goldman Sachs and BNY Mellon Launch Tokenized Money Market Fund, BlackRock and Fidelity Sign On

Key Points:

• BNY Mellon has launched a tokenized money market fund through its LiquidityDirect platform, with ownership records and transactions conducted on Goldman Sachs' digital asset platform blockchain, and BlackRock and Fidelity have signed on to join.

• BNY, as the world's largest custodian bank (managing $53 trillion in assets), will serve as the fund's shareholder service provider, custodian, and tokenization manager, responsible for the minting and burning of tokens.

• The market size for tokenized U.S. Treasury securities has reached $7 billion this year, tripling year-on-year, but it only represents a small portion of the $70 trillion total size of money market funds. Given that tokenization can enable seamless and efficient transactions while reducing friction in traditional markets, this sector has significant growth potential.

Why It Matters:

• This collaboration marks a rapid acceptance of blockchain technology applications by traditional financial institutions. Tokenized money market funds are competing in the same space as stablecoin issuers, vying for the market of "digitizing traditional dollar funds and investing in Treasury securities for returns." Banks are both issuers of tokenized products (tokenized MMFs, tokenized deposits) and key infrastructure providers for the flow of funds between crypto and traditional finance, and their strategic choices will have profound impacts on the overall market landscape. This trend will enhance institutional liquidity management efficiency while bringing strong growth momentum and credibility to the tokenized traditional asset market.

JPMorgan to Launch Crypto Asset Mortgage Services as Early as 2025, Lending Rates May Face Downward Pressure

Key Points:

• JPMorgan plans to launch dollar loan services accepting cryptocurrencies like Bitcoin and Ethereum as collateral as early as 2025. Previously, the bank allowed clients to secure loans using Bitcoin ETFs as collateral.

• The current size of the crypto lending market is $36.5 billion (down from a peak of $64.4 billion during the 2021 bull market), with Tether, Galaxy Digital, and Ledn accounting for 90% of the non-DeFi lending market, while DeFi platforms provide $19.1 billion in loans.

• Industry experts predict that as traditional financial giants like JPMorgan enter the space, crypto mortgage rates will significantly decrease from the current level of over 12.5%, potentially aligning with home equity loans or personal credit lines.

Why It Matters:

• The entry of JPMorgan, the world's largest bank, into the crypto lending space signifies the industry's acceleration towards mainstream finance. CEO Jamie Dimon, who once called Bitcoin a "fraud," is now gradually embracing crypto assets, reflecting an improved regulatory environment and growing institutional demand. The characteristic of Bitcoin as a globally unified collateral will make such loan products competitive worldwide, not just in developed countries, providing more equitable financial service opportunities for global crypto holders. This move may prompt other large banks to follow suit, accelerating the integration of crypto assets with the traditional financial system.

Capital Layout

Figma Plans Auction-style IPO to Raise $1.03 Billion, S-1 Filing Includes Modernized Stock Authorization Terms

Key Points:

• After the $20 billion acquisition deal with Adobe was stalled due to regulatory issues, Figma is turning to an independent listing, planning to issue 12.47 million new shares and 24.46 million shares for resale, with a price range of $25-28, valuing the company at up to $13.6 billion.

• The company has chosen an "auction-style IPO" instead of a traditional roadshow pricing, requiring investors to submit limit orders to specify their purchase price and quantity, aiming to obtain more authentic market feedback and maximize the company's fundraising capability.

• Figma disclosed in its S-1 filing with the SEC that it has "pre-authorized the ability to issue blockchain common stock," leaving room for future tokenized equity introduction. Although there are no clear plans in the short term, it shows its forward-looking layout in equity structure and capital tools.

Why It Matters:

• The return of auction-style IPOs signifies that the primary market pricing mechanism is iterating towards a more efficient and equitable direction, avoiding the systemic undervaluation of issue prices seen in traditional IPOs. More critically, Figma's reservation of space for tokenized equity indicates that tech companies are exploring new paths for digitalizing capital structures, which could bring liquidity characteristics similar to public markets to non-public equity, broadening the investor base through on-chain settlement, global access, and fragmented trading. As one of the largest tech IPOs potentially this year, Figma's fundraising innovation serves as a model for the next paradigm shift in tech company financing.

Regulatory Compliance

Anchorage to Issue First USDtb Stablecoin Compliant with GENIUS Act

Key Points:

• Anchorage Digital, the first federally chartered crypto bank in the U.S., announced it will issue the USDtb stablecoin from Ethena Labs within the U.S., which is the first stablecoin specifically designed to comply with the new GENIUS Act.

• USDtb is a yield-bearing dollar token primarily backed by BlackRock's BUIDL and crypto assets to maintain a $1 peg, rather than a traditional reserve model. Since its offshore issuance in December last year, it has locked in a value of $1.45 billion.

• Through this collaboration, USDtb will enter the federal regulatory framework for the first time, with Anchorage providing a full suite of infrastructure for minting, redeeming, and compliant distribution, making it a "fully regulated digital dollar."

Why It Matters:

• The issuance of USDtb domestically is a significant milestone for the U.S. stablecoin market, not only validating the effectiveness of the GENIUS Act but also indicating that "yield-bearing, compliant" digital dollar products will become a core trend in future financial innovation. Anchorage's actions position it in the same competitive space as existing dollar stablecoin issuers like Circle and PayPal, as well as traditional banks like JPMorgan and Citibank exploring tokenized deposits. This competition will revolve around who can better provide compliant, efficient, yield-bearing, and trusted digital dollars.

Crypto Tax Rules Remain Unchanged After GENIUS Act, Still Taxed as Property

Key Points:

• Despite the introduction of a new regulatory framework by the GENIUS Act and the CLARITY Act passed by the House, the IRS still views cryptocurrencies as "intangible property" for tax purposes, maintaining the tax stance established in 2014.

• Crypto assets are not subject to the wash sale rules applicable to securities, nor do they enjoy the benefits of Section 1256 for commodity trading, with the only exception being Bitcoin futures contracts, which can benefit from a 60/40 capital gains split and year-end mark-to-market valuation.

• The GENIUS Act focuses on reserve, audit, and disclosure requirements for stablecoin issuers, while the CLARITY Act clarifies the regulatory scope of the SEC and CFTC, but neither changes the tax classification of crypto assets.

Why It Matters:

• The unchanged tax rules present mixed implications for traders. Crypto investors can continue to utilize the wash sale rule for more flexible loss harvesting but cannot opt for mark-to-market valuation under Section 475 or enjoy the 20% QBI deduction. Bitcoin ETF investors (such as Nasdaq IBIT and CBOE's FBTC) are still treated as directly holding property for tax purposes. This indicates that even as the regulatory framework becomes increasingly refined, crypto tax rules still require specialized legislative adjustments, and traders need to develop tax strategies accordingly.

Prediction Market Polymarket Acquires CFTC License to Return to the U.S., May Issue Its Own Stablecoin

Key Points:

• Polymarket has acquired the CFTC-licensed exchange QCEX and its clearing house QC Clearing in Florida for $112 million, providing a legal pathway to return to the U.S. market and will serve U.S. users as a "licensed platform."

• The liquidity and trading volume of Polymarket's political prediction market have surpassed many traditional derivatives platforms, particularly active ahead of the U.S. elections, indicating strong demand from users for compliant and efficient prediction platforms.

• Polymarket is considering issuing its own stablecoin as a second growth engine for integrating platform value chains, internalizing the interest income generated from users' trading funds, enhancing its profit model and improving fund retention and user stickiness.

Why It Matters:

• Against the backdrop of expectations for a return of the Trump administration and the CFTC's regulatory openness, prediction markets are transitioning from marginal tools to mainstream financial infrastructure. Polymarket's compliance strategy demonstrates that platforms with trading depth, compliant pathways, and capital control can continuously occupy users' minds in the era of high-frequency trading and information games. The "prediction market + proprietary stablecoin" model will create a more robust ecosystem within the regulatory framework, building a more lasting competitive advantage for the next market cycle.

Gauntlet Proposes Building a Sustainable On-chain Regulatory Framework to Balance DeFi Regulation and Innovation

Key Points:

• The U.S. crypto regulatory landscape has made breakthrough progress: the first cryptocurrency bill has been signed into effect, the GENIUS Act has passed both houses, and the SEC chairman is considering providing "innovation exemptions" for DeFi intermediaries and issuers.

• The Gauntlet team, based on its experience managing $1.3 billion in assets, proposed a regulatory framework: 1) acknowledging the fundamental differences between DeFi's self-custody, permissionless architecture and traditional finance; 2) establishing clear standards including disclosure requirements and safe harbor provisions.

• Regulation needs to focus on three key areas: disclosure and transparency (clear risk disclosures), accountability and responsibility allocation (assigning responsibility based on direct control), and compliance of self-custody systems (developing monitoring standards suitable for a non-intermediary environment).

Why It Matters:

• The current financial regulatory framework is designed based on traditional intermediary models and cannot adapt to the new paradigms of DeFi's permissionless, self-custody, and autonomous trading. As DeFi continues to reshape the financial landscape, it is crucial to establish regulatory rules that balance consumer protection and innovation. Reasonable regulation will enhance the sustainability, security, and broader institutional adoption of the ecosystem while maintaining DeFi's core advantages of cost reduction, friction elimination, and universal financial access. The U.S. traditional values of free enterprise, individual autonomy, and respect for property rights align closely with the vision of DeFi, providing a unique opportunity to establish a forward-looking regulatory framework.

Tether CEO Confirms Significant Progress in U.S. Market Layout, Plans to Launch Institutional-grade Stablecoin

Key Points:

• Tether CEO Paolo Ardoino stated in an interview with Bloomberg that the company's plans to enter the U.S. market are "progressing smoothly," with specific proposals for the institutional market expected to be announced in the coming months.

• This announcement comes after President Trump signed the GENIUS Act last week, which established a federal framework for U.S. stablecoin regulation, requiring large stablecoin issuers to undergo annual audits.

• Tether revealed in April plans to launch a domestically designed stablecoin for institutional clients, focusing on providing faster settlement services, which will distinguish it from its current global leader USDT (market cap of $162 billion).

Why It Matters:

• Tether's entry into the U.S. market signifies the world's largest stablecoin issuer's response and adaptation to the new regulatory framework. With the signing of the GENIUS Act, the U.S. stablecoin market will welcome a more regulated development environment, while also facing strong competition from traditional financial institutions jointly owned by JPMorgan, Bank of America, Citigroup, and Wells Fargo. Although Ardoino acknowledges a potential disadvantage in the short term, he emphasizes that Tether has better technology and market understanding. Additionally, Tether's new CFO is leading efforts to achieve a complete audit, which will enhance its compliance and credibility in the U.S. market. Unlike its competitor Circle, Tether has explicitly stated it has no intention of going public, reflecting its unique strategic positioning.

Hong Kong Monetary Authority to Release Stablecoin Rules Next Week, Warns Against Over-speculation

Key Points:

• The Hong Kong Monetary Authority (HKMA) will release a summary of rules for stablecoin issuers next week, while HKMA President Eddie Yue warns of excessive market exuberance.

• Several listed companies have seen their stock prices rise and trading volumes surge merely by expressing intentions to explore stablecoin businesses, but the HKMA will initially issue only a few stablecoin licenses.

• The HKMA emphasizes that even with a license, the contribution of stablecoin businesses to short-term profitability remains uncertain due to considerations for steady development and initial resource investment needs.

Why It Matters:

The imminent establishment of a regulatory framework for stablecoins in Hong Kong, coupled with the HKMA's clear warning against market "speculation," indicates that regulatory authorities will adopt a cautious and conservative approach. Investors need to calmly assess the valuations of related companies to avoid blindly following trends. This also suggests that Hong Kong will adhere to prudent principles in developing its virtual asset ecosystem, with strict licensing issuance providing important decision-making references for market participants.

American Bankers Association Opposes Circle, Fidelity, and Ripple's Applications for Trust Bank Licenses

Key Points:

• Five banking associations, including the American Bankers Association, have written to the OCC opposing the applications of Circle, Fidelity Digital Assets, Protego Trust, and Ripple for national trust bank licenses.

• The banking associations criticize these crypto and stablecoin companies for not disclosing sufficient information for public comment, stating that 90% of the content in Circle and Ripple's application documents has been redacted.

• The associations believe these applications are essentially a "backdoor" route to becoming national banks and are urging the OCC to delay approval until the applicants disclose more details about their business plans.

Why It Matters:

The tension between the banking industry and the crypto industry is once again highlighted, as traditional financial institutions attempt to block crypto companies from entering the regulated financial system through trust bank licenses. The OCC's decision will directly impact the compliance pathways and business expansion capabilities of major stablecoin issuers like Circle, while also reflecting the challenges regulatory authorities face in balancing innovation with financial stability. If crypto companies successfully obtain licenses, it will significantly enhance their legitimate status and competitiveness within the U.S. financial system.

Tether Assists U.S. in Freezing $1.6 Million USDT Related to Terror Financing

Key Points:

• Tether announced it has assisted U.S. authorities in freezing and reissuing approximately $1.6 million USDT, which is linked to the BuyCash financial network in Gaza, alleged to be associated with terror financing activities.

• This action is part of a larger civil forfeiture case by the U.S. Department of Justice, involving about $2 million in digital assets used to support designated terrorist organizations.

• Tether has assisted global law enforcement agencies in freezing over $2.9 billion in USDT related to illegal activities, supporting more than 275 law enforcement agencies across 59 jurisdictions, with over 2,800 wallets frozen in collaboration with U.S. agencies alone.

Why It Matters:

Tether's close cooperation with law enforcement demonstrates the advantages of blockchain transparency in combating financial crime. Unlike traditional financial systems, USDT transactions can be tracked, frozen, and recovered, providing new tools for fighting terror financing. As the largest stablecoin issuer, Tether's proactive compliance with regulatory authorities showcases its commitment to compliance, which helps improve its regulatory image and enhance the legitimacy of stablecoins within the global financial system.

Original Link

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。