Stablestats Dispatch August 18 - August 22, 2025

Industry News 

MetaMask Unveils Wallet-Native Stablecoin mUSD. Crypto wallet provider MetaMask announced MetaMask USD (mUSD), a dollar-backed stablecoin issued by Stripe-owned Bridge and powered on-chain by protocol M0. Slated to launch on Ethereum and Consensys’ Linea network later this year, mUSD will integrate directly into MetaMask (including a planned Mastercard debit card by year-end) to enable seamless on-ramps, swaps, and spending for the wallet’s millions of users.

Wyoming Launches First State-Issued U.S. Dollar Stablecoin. The state of Wyoming officially debuted the Frontier Stable Token (FRNT) – a fully-reserved, over-collateralized token – across seven blockchains via LayerZero, making it the first USD stablecoin issued by a U.S. state. FRNT’s reserves will be managed by Franklin Templeton and audited by The Network Firm, with crypto exchanges Kraken and Rain set to distribute the token to users.

Goldman and U.S. Treasury Predict “Stablecoin Gold Rush.” In Washington, U.S. Treasury Secretary Scott Bessent and a new Goldman Sachs report both signaled an oncoming trillion-dollar boom in stablecoins. Officials argue the recently passed federal law (GENIUS Act) will accelerate stablecoin adoption for payments and settlement, with Goldman projecting ~40% annual growth for dollar-pegged tokens through 2027 as more straightforward rules and global demand for dollar liquidity drive a “stablecoin gold rush”.

Binance’s Plasma USDT Yield Product Sells Out Instantly. Binance rolled out a new on-chain earn program with stablecoin startup Plasma, offering a 2% APY on USDT deposits plus rewards in Plasma’s XPL token – and saw the initial $250 million cap filled in under one hour. The “Plasma USDT Locked Product” attracted overwhelming demand from users seeking yield on idle stablecoins; Binance hinted it may raise the deposit quota ahead of Plasma’s mainnet launch next month, given the intense interest.

Cap Stablecoin Protocol Debuts cUSD on Ethereum. Decentralized finance startup Cap officially launched its stablecoin platform on Ethereum, opening up minting of a fully backed cUSD token. As part of the launch, users can also stake cUSD into an interest-bearing stcUSD vault and earn “Caps” governance tokens via Cap’s Frontier rewards program. (Cap earlier raised $11 million from Franklin Templeton and others to develop this multi-stablecoin ecosystem.)

Citigroup Explores Stablecoin Custody and Payments. Banking giant Citi revealed that sweeping U.S. crypto legislation has prompted it to consider offering custodial services for stablecoin reserves (like the Treasuries and cash backing dollar tokens). Citi’s innovation head said the bank may also provide stablecoin payment and conversion tools for clients, as Wall Street sees new opportunities in facilitating stablecoin issuance and usage under the clarity of the GENIUS Act.

China Weighs Yuan-Backed Stablecoins in Policy Shift. In a significant reversal, China’s State Council is considering yuan-pegged stablecoins as part of a new plan to internationalize the renminbi. The roadmap – expected to be approved this month – would allow regulated CNH stablecoins for the first time, aiming to boost global use of the yuan amid the dominance of U.S. dollar stablecoins in cross-border trade. Pilot programs in financial hubs like Hong Kong and Shanghai are likely to be part of the plan.

The Crypto Industry Fights Against the GENIUS Act Rewrite by Big Banks. The U.S. crypto lobby is pushing back against an effort by traditional banks to alter the new federal stablecoin law in their favor. Financial industry groups have asked Congress to amend the GENIUS Act to impose stricter rules (which could advantage banks as issuers). Still, digital asset firms argue such changes would stifle fintech innovation and entrench incumbents. Lawmakers have yet to signal whether they’ll entertain the bank-sought revisions.

U.S. Treasury Seeks Input as Stablecoin Oversight Begins. The Treasury Department opened a 60-day public comment period to gather “innovative ideas” on identifying illicit crypto activity, as it kicks off implementation of the GENIUS Act stablecoin law. The law, the first U.S. federal framework for stablecoins, requires agencies to devise safeguards against money laundering and other risks. Treasury’s request for information focuses on new techniques banks and fintechs can use to monitor digital asset transactions under the forthcoming rules.

Federal Reserve Winds Down Crypto Bank Program. The Federal Reserve quietly shuttered its Novel Activities Supervision Program, which had been established to monitor banks engaged in crypto asset activities closely. The move, coming amid a broader regulatory pullback on crypto, signals a shift in the Fed’s stance – from special scrutiny of crypto-friendly banks (after several high-profile failures) toward more standard oversight as the industry matures. Officials indicated that they will integrate crypto risk oversight into standard examination processes, rather than running a separate program.

Tether Hires Former White House Advisor for U.S. Expansion. Stablecoin issuer Tether appointed Bo Hines, who served as Executive Director of President Trump’s White House Crypto Council, as a Strategic Advisor for U.S. digital asset strategy. Hines will guide Tether’s engagement with American policymakers and help shape the growth of its USD₮ stablecoin in the market. Tether’s CEO, Paolo Ardoino, stated that the hire underscores Tether’s commitment to compliance and bridging the gap between policy and innovation as the company ramps up its investment in U.S. infrastructure.

Japan Readies First Yen Stablecoin Approval. Japan’s Financial Services Agency is poised to approve the country’s first JPY-pegged stablecoin by this fall, with fintech firm JPYC expected to receive the license. Under new rules effective this year, JPYC’s token will be fully backed 1:1 by yen in bank deposits and Japanese government bonds. The move comes as major economies, such as Japan and Hong Kong, establish legal frameworks to supervise stablecoin issuers and spur fintech innovation in their domestic currencies.

Bermuda Licenses Startup to Issue Non-USD Stablecoins. Haycen, a fintech firm backed by Northern Trust and the U.K.’s public investment fund, secured a Bermuda Monetary Authority license to issue stablecoins. The company plans to roll out a British pound-pegged stablecoin as its first offering, targeting global trade and lending markets beyond the U.S. dollar. Haycen’s CEO said the regulatory green light underscores Bermuda’s crypto-friendly regime, which has attracted several non-bank stablecoin issuers as they navigate varying rules across jurisdictions.

Kraken & Backed Expand Tokenized Stocks to Tron Network. Crypto exchange Kraken and fintech firm Backed Finance announced the expansion of their “xStocks” tokenized equities platform to the Tron blockchain. The service, which launched on Solana and BNB Chain in June, has already facilitated over $2.5 billion in combined trading volume. By deploying stock tokens as TRC-20 assets on Tron, the partners aim to broaden access to real-world stocks via crypto rails—a trend Binance Research says is nearing a significant inflection point as RWA integration accelerates.

Stellar Invests in Archax to Boost Asset Tokenization. The Stellar Development Foundation (SDF) has made a strategic investment in London-based exchange Archax to advance the tokenization of real-world assets (RWAs) on the Stellar blockchain. Archax has begun integrating Stellar for tokenizing traditional financial instruments and recently launched a tokenized money market fund on the network. SDF’s support comes as the tokenization of bonds, funds, and stocks gathers speed – the on-chain RWA market has roughly doubled over the past year to $26 billion and is projected to reach into the trillions by 2030.

SBI and Startale Partner on 24/7 Tokenized Stock Exchange. Japanese finance group SBI Holdings is teaming with Singapore’s Startale (founded by the creator of Astar Network) to build a new platform for trading tokenized stocks and securities around the clock. Backed by SBI’s $75 billion in assets under management and 65 million customers, the joint venture will enable fractional, on-chain trading of equities outside traditional market hours. Industry forecasts project that the tokenized asset market could soar to $18.9 trillion by 2033, and the SBI–Startale exchange aims to capture this growth by offering seamless global access to digitized shares.

What I am Reading 

State of Stablecoins by Messari