Tokenization Weekly - No. 86

🚀 Crypto & Blockchain Weekly Digest: August 4–10, 2025

1️⃣ China Tells Brokers to Halt Stablecoin Promotions Amid “Frenzy” Clampdown 🇨🇳

- Regulatory move: Chinese regulators have directed domestic brokers to stop promoting, publishing research, or holding seminars endorsing stablecoins to cool down what authorities see as a speculative frenzy among investors. The guidance, issued to top firms in late July and early August, comes amid surging underground trading volumes and growing public interest following Hong Kong’s regulatory advances.

- Policy context: The ban aims to curb financial risks and illicit activities, with regulators also targeting think tanks and market seminars. While official statements remain scarce, analysts say this signals intensified scrutiny as the global stablecoin market races toward $3.7T by 2030. Mainland policy now diverges sharply from Hong Kong’s more proactive licensing regime.

2️⃣ Stablecoin Regulations Tighten as Hong Kong Launches Licensing—Identity Verification Mandated 🇭🇰

- Major regulatory change: Hong Kong's landmark stablecoin licensing regime began accepting applications on August 1, requiring all stablecoin holders to complete strict identity verification checks by authorized financial institutions or licensed issuers.

- Industry impact: Over 50 firms expressed intent to apply, but officials warn most will not be approved in the initial round. The new framework is expected to set a global standard for stablecoin oversight as the market awaits the first licenses in early 2026.

3️⃣ UAE Unifies Crypto Regulation with SCA and VARA Partnership 🤝

- Framework leap: The United Arab Emirates (UAE) announced a strategic partnership between the Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) to unify crypto regulation across all emirates.

- Mechanisms: The agreement brings mutual recognition of Virtual Asset Service Provider (VASP) licenses, real-time data sharing, coordinated anti-money laundering (AML) and counter-terrorism efforts, and a streamlined nationwide licensing path.

- Impact: The move is set to eliminate regulatory overlap, lower operational risk, and position the UAE as a global leader in digital asset oversight, making it faster and safer for crypto businesses to deploy services nationally.

4️⃣ Visa Expands Stablecoin Settlement to Stellar, Avalanche and More Stablecoins 💳

- Product expansion: Visa added stablecoin settlement support for PayPal USD (PYUSD), Paxos Global Dollar (USDG), and Circle's EURC, now spanning Stellar and Avalanche blockchains in addition to Ethereum and Solana.

- Industry impact: The move lowers settlement costs and improves cross-chain interoperability. Visa has now moved more than $225 million in stablecoin transactions as it courts financial institutions seeking efficient global settlement rails.

5️⃣ Coinbase to Launch Tokenized Stocks and Prediction Markets in U.S. 📊

- New platform: Coinbase announced plans to launch tokenized stocks, derivatives, and prediction markets for U.S. customers in late summer 2025, aiming to become a one-stop “everything exchange” for digital assets.

- Industry shift: The expansion comes as the SEC and CFTC coordinate to enable federally-regulated crypto trading, following the recent U.S. executive order targeting crypto market modernization and innovation.