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Digital tokens to hit Korean supermarkets in December

Starting in December, selected participants will reportedly be able to use tokenized deposits to make payments at domestic supermarkets and convenience stores. This initiative is part of a comprehensive usability test for a wholesale central bank digital currency (CBDC), conducted by the Bank of Korea (BOK) in collaboration with six major commercial banks. Basically, the BOK will issue CBDC to banks, which will then convert it into deposit tokens for use by consumers at designated retail locations. 100,000 individuals have been selected for the pilot, and participating banks are forming partnerships with retail outlets and developing dedicated digital platforms.

#Fintech #CBDC #wCBDC #DepositTokens #Korea #DFC

·koreatimes.co.kr·Sep 20, 2024

Digital tokens to hit Korean supermarkets in December

BCB announces projects selected for the second phase of Drex testing

Banco Central do Brasil (BCB) announced the 13 themes that will be trialed during the second phase of the Drex wholesale central bank digital currency (CBDC) pilots. The first phase involved testing processes such as issuing, transferring and settling digital treasury bonds with tokenized commercial bank deposits with wholesale CBDC utilized for interbank settlements. During the second phase, various financial services will be developed via smart contracts on the Drex platform created by 16 consortia or companies. The platform is a permissioned Ethereum network using Hyperledger Besu

#Fintech #CBDC #wCBDC #DepositTokens #Brazil #DFC

·bcb.gov.br·Sep 6, 2024

BCB announces projects selected for the second phase of Drex testing

Citi survey finds fewer institutions want CBDC for digital asset settlement

Of almost 500 institutions surveyed by Citi, only 15% expressed a need CBDC for digital asset settlement versus 52% of respondents to a similar survey in 2023. Instead, there’s a greater emphasis on alternative digital payment methods including nonbank stablecoins, tokenized deposits and tokenized money market funds. https://www.citibank.com/icg/docs/Citi_Securities_Services_Evolution_2024.pdf

#Fintech #CBDC #wCBDC #Tokenization #Settlement #DepositTokens #DFC

·ledgerinsights.com·Sep 5, 2024

Citi survey finds fewer institutions want CBDC for digital asset settlement

Korea shares plans for tokenized deposit, wholesale CBDC trials

The Bank of Korea (BOK) will launch two wholesale central bank digital currency (CBDC) tests. The first will be a pilot in which banks will issue tokenized deposits as programmable vouchers, and settle them between each other using wholesale CBDC. This tokenized deposit pilot will involve up to 100,000 people starting in September or October 2024. The second test will be a proof-of-concept that will involve banks using wholesale CBDC to settle carbon credit transactions on the Korea Exchange. https://www.koreatimes.co.kr/www/nation/2023/11/602_363810.html https://www.bok.or.kr/eng/bbs/B0000359/view.do?nttId=10080772&menuNo=400415

#Fintech #CBDC #wCBDC #Korea #Tokenization #DepositTokens #DFC

·ledgerinsights.com·Nov 23, 2023

Korea shares plans for tokenized deposit, wholesale CBDC trials

HKMA launches wholesale CBDC project to support tokenization, tokenized deposits

The Hong Kong Monetary Authority (HKMA) launched Project Ensemble to test using wholesale central bank digital currency (CBDC) to settle tokenized assets with tokenized bank deposits. Use cases will include settling tokenized green bonds, carbon credits, aircraft instruments, electric vehicle charging stations, and electronic bills of lading. To help set industry standards, the HKMA will form a "wCBDC Architecture Community" consisting of local and multinational banks, key digital asset industry players, and technology companies. https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/03/20240307-5/

#Fintech #CBDC #wCBDC #Tokenization #DepositTokens #HongKong #DFC

·ledgerinsights.com·Mar 7, 2024

HKMA launches wholesale CBDC project to support tokenization, tokenized deposits

Project Agorá: Exploring tokenized commercial bank deposits

The Bank for International Settlements (BIS) together with seven central banks will explore how tokenization of wholesale central bank money and commercial bank deposits on programmable platforms can improve the monetary system. Project Agorá's primary area of exploration will be to increase the speed and integrity of international payments, while lowering costs by building on the BIS's proposed unified ledger concept. The BIS will issue a call for expressions of interest to private financial institutions, with the Institute of International Finance (IIF) acting as the intermediary and convener, to join the project.

#Fintech #wCBDC #DepositTokens #UnifiedLedger #BIS #CBDC #DFC

·bis.org·Apr 3, 2024

Project Agorá: Exploring tokenized commercial bank deposits

HKMA establishes the Project Ensemble Architecture Community

The Hong Kong Monetary Authority (HKMA) has established the Project Ensemble Architecture Community to work with the industry to shape standards and provide suggestions to support the development of Hong Kong's tokenization market. The Community aims to develop a set of industry standards to support interoperability among wholesale central bank digital currency (WCBDC), tokenized money and tokenised assets. The Community will also assist in the design and implementation of a sandbox to launch by around mid-2024.

#Fintech #Tokenization #CBDC #wCBDC #DepositTokens #Sandboxes #HongKong #DFC

·hkma.gov.hk·May 9, 2024

HKMA establishes the Project Ensemble Architecture Community

Korea to trial digital vouchers based on WCBDC-based deposit tokens

The Korean Ministry of Science and Information and Communications Technology (MSIT) and the Korea Internet and Security Agency (KISA) launched an investment project to promote the domestic blockchain industry. It is committing Won 20 billion ($14.5 million) across 14 projects, divided into two public sector and the private sector parts. One of the public sector projects includes the development of a wholesale central bank digital currency (CBDC)-based digital voucher management platform by the Bank of Korea. This platform will allow various voucher programs to be used on mobile devices, improving the efficiency and accessibility of digital payments. https://www.msit.go.kr/bbs/view.do?sCode=user&mId=113&mPid=238&pageIndex=2&bbsSeqNo=94&nttSeqNo=3184609&searchOpt=ALL&searchTxt=

#Fintech #CBDC #wCBDC #Blockchain #DepositTokens #Korea #DFC

·ledgerinsights.com·Jun 19, 2024

Korea to trial digital vouchers based on WCBDC-based deposit tokens

Visa showcases tokenized deposits with HSBC, Hang Seng Bank

Visa published a report on its tokenized deposit trial with HSBC and Hang Seng Bank, which involved (i) settling high value real estate transaction and (ii) settling Visa card payments. In Hong Kong there are restrictions on faster payment amounts, so the real estate transaction supported a high value instant payment with tokenized deposits. With tokenized deposits, when a payee transfers money to a recipient, the sending bank burns the tokens and the recipient bank mints them so they appear in the recipient’s wallet. Instant settlement is facilitated by wholesale CBDC, with the token and CBDC exchanges happening simultaneously, so there’s no settlement risk. https://usa.visa.com/content/dam/VCOM/regional/na/us/Solutions/documents/e-hkd-and-the-future-of-global-money-movement.pdf?linkId=492498536

#Fintech #DepositTokens #CBDC #wCBDC #HongKong #VISA #DFC

·ledgerinsights.com·Jul 9, 2024

Visa showcases tokenized deposits with HSBC, Hang Seng Bank

UK Regulated Liability Network (RLN) experimentation phase concludes

UK Finance released the results of the experimentation phase of the Regulated Liability Network (RLN) which explored the potential for tokenized deposits and programmability among eleven financial institutions. The overall conclusion was the RLN provides a viable innovation platform, and the next step is to engage with regulators. Five use cases were trialed, ranging from buying a home to the settlement of a tokenized bond, finding significant benefits and exploring various revenue models. It found 40 specific business benefits grouped into five higher level ones; (i) greater settlement efficiency, (ii) the ability to address authorized push payment fraud, (iii) simplifying customer journeys, (iv) reducing the cost of failed payments and (v) greater payment efficiencies. https://www.ukfinance.org.uk/policy-and-guidance/reports-and-publications/rln-reports-2024

#Fintech #RegulatedLiabilityNetwork #Programmability #DepositTokens #UnitedKingdom #DFC

·ledgerinsights.com·Sep 17, 2024

UK Regulated Liability Network (RLN) experimentation phase concludes

Deposit Tokenization: Survey of Overseas Initiatives

The Bank of Japan (BOJ) published a survey of global deposit tokenization projects. With the emergence of stablecoins, these initiatives seem to seek an extension of functionality in payment and settlement systems by applying new technologies, such as distributed ledger technology (DLT), to bank deposits as a traditional means of payment. The main reason such initiatives prefer leveraging deposit money is said to be its affinity with the two-tier monetary system and possibly with existing laws or regulations. However, there remain some issues that require further clarification on how payments with tokenized deposits are categorized in the private law system, and how smart contracts provide implications for non-functional requirements and legal certainty.

#Fintech #Tokenization #DepositTokens #DFC

·boj.or.jp·Aug 31, 2024

Deposit Tokenization: Survey of Overseas Initiatives

Japanese tokenized deposit solution DCJPY launches into production

Japan's DeCurret DCP officially launched its DCJPY tokenized deposit solution. DCJPY consists of two zones, a Financial Zone where banks mint tokens and integrate with their core banking systems. Multiple Business Zones synchronize transactions with the Financial Zone. The first DCJPY use case involves server hosting company IIJ procuring renewable energy certificates (RECs), tokenizing them and selling them to its clients. Apart from using the tokenized RECs for its clients, IIJ is also considering the secondary distribution of the tokens. https://www.decurret-dcp.com/en/pressrelease/pr-20240828.html

#Fintech #Tokenization #DepositTokens #Japan #DFC

·ledgerinsights.com·Aug 28, 2024

Japanese tokenized deposit solution DCJPY launches into production

EC Seeks Feedback on the Functioning of EU Crypto-Asset Rules (EC)

The European Commission (EC) launched a consultation to evaluate whether the Markets in Crypto‑Assets Regulation (MiCA), implemented in 2024, remains fit for purpose given rapid changes in digital asset markets and global regulation. It seeks feedback on MiCA’s core building blocks, including rules for crypto‑assets, asset‑referenced tokens, e‑money tokens, their issuers and service providers. There is an open public consultation and a more technical targeted consultation for industry and public authorities. Responses are invited until August 31, 2026 and will inform future European Union (EU) policy on digital assets. [EC]

#CryptoAssets #Fintech #Regulation #Stablecoins #Europe #DFC

·finance.ec.europa.eu·May 21, 2026

EC Seeks Feedback on the Functioning of EU Crypto-Asset Rules (EC)

Euro Stablecoin Project Qivalis Gains Backing of 37 Banks (FT)

The Financial Times (FT) reported that Amsterdam-based Qivalis has secured support from 37 European banks, including BNP Paribas, ING, UniCredit, ABN Amro, Intesa Sanpaolo and Rabobank, for a euro-denominated stablecoin aimed at reducing dollar dominance in crypto and supporting cross-border and “atomic” settlement. The consortium seeks regulatory approval from De Nederlandsche Bank in the second half of 2026 and plans to launch at scale to compete with small existing euro stablecoins such as Circle’s EURC, Société Générale’s Forge and Eurite, in a market where almost the entire 320 billion dollars of stablecoin float is dollar-based. https://www.linkedin.com/feed/update/urn:li:activity:7462774365638553600/ [FT]

#Europe #Eurozone #Stablecoins #Fintech #DFC

·ft.com·May 20, 2026

Euro Stablecoin Project Qivalis Gains Backing of 37 Banks (FT)

The Moneyness of Stablecoins (Odinet Tosado and Yadav)

In a forthcoming Yale Law Journal article, C. Odinet, A. Tosado and Y. Yadav develop a four-element legal framework for "moneyness" and apply it to stablecoins before and after the U.S. GENIUS Act. Moneyness requires conjunctive adequacy across the nature and substance of the claim, safety, discharge capacity, and negotiability, with deficiency in any element undermining the whole. The authors deconstruct the contractual and reserve structures of dominant issuers (Tether and Circle) to show that redemption is conditional and limited by privity, holders lack proprietary interests in backing reserves, and bankruptcy treatment remains ambiguous. These deficiencies matter because they force holders to assess both issuer and custodian solvency, undermine finality in payment discharge, and expose claimants to credit risk incompatible with money's core function of circulating at par without investigation. The GENIUS Act of 2025 mandates reserve requirements and redemption frameworks but fails to resolve key vulnerabilities. It compels reliance on third-party custodians rather than Federal Reserve accounts, contains internally contradictory bankruptcy provisions, and provides no finality rules specifying when transfers extinguish obligations. The authors propose five targeted reforms; Federal Reserve master account access for qualifying issuers, industry-funded insurance, a secured interest regime replacing flawed bankruptcy rules, statutory finality provisions for both direct and intermediated transfers, and express tokenization of redemption rights. [Odinet Tosado and Yadav]

#Stablecoins #Fintech #Regulation #UnitedStates #DFC #Legal

·andreatosato.com·May 17, 2026

The Moneyness of Stablecoins (Odinet Tosado and Yadav)

A Modified Gresham's Law of Stablecoins (Cecchetti and Schoenholtz)

Stephen Cecchetti and Kermit Schoenholtz argue that a modified Gresham’s Law in stablecoins implies that regulation targeting issuers and intermediaries, rather than the tokens themselves, will systematically favor pseudonymous, weakly supervised instruments. They emphasize that Bank Secrecy Act–style rules and recent legislative proposals continue to rely on know‑your‑customer at entry and exit points, leaving cross‑border, self‑custodied dollar tokens largely outside effective control and limiting the impact of wallet blacklisting and analytics. This matters because as long as tokens function as bearer‑like digital cash, criminals can arbitrage differences in national enforcement, making stricter regulation of compliant issuers perversely strengthen “bad” offshore rivals. The authors therefore highlight the need for “compliance‑by‑design” instrument architectures and potentially new legal categories that embed screening and traceability into the token layer itself while preserving some privacy, raising unresolved questions about feasibility, governance, and the required degree of international regulatory coordination. [Cecchetti and Schoenholtz]

#Fintech #Regulation #Stablecoins #UnitedStates #USDC #USDT #DFC #FinancialIntegrity #AMLCFT

·moneyandbanking.com·May 17, 2026

A Modified Gresham's Law of Stablecoins (Cecchetti and Schoenholtz)

Stablecoins vs. Tokenized Deposits: The Narrow Banking Debate Revisited (FRBNY)

[February 2026] The Federal Reserve Bank of New York (FRBNY) published a paper by X. Huang and T. Keister that uses a new monetarist general equilibrium model to examine how stablecoins backed by safe assets versus tokenized bank deposits affects interest rates, investment, and welfare. Deposit insurance creates a risk-shifting incentive for banks, corrected by a regulatory tax on deposit issuance. Stablecoin issuers, being competitive and narrow-balance-sheet, face no such tax and earn zero profit in equilibrium. When stablecoins compete, they bid deposit rates upward toward the safe asset return, raising banks' funding costs and crowding out lower-return risky lending; when prohibited, deposit rates fall and banks expand credit but may over-invest in risky projects. The paper shows that allowing only tokenized deposits raises welfare when regulatory costs are high and moral hazard is limited, whereas allowing only stablecoins is preferable when moral hazard is severe and regulation insufficient, and competition between the two is optimal in intermediate cases — a result the authors connect explicitly to historical narrow banking debates. [FRBNY]

#Regulation #Stablecoins #UnitedStates #FinancialStability #DepositTokens #DFC #Fintech

·newyorkfed.org·May 14, 2026

Stablecoins vs. Tokenized Deposits: The Narrow Banking Debate Revisited (FRBNY)

The GENIUS Act's "Interest" Prohibition: Evidence of Regulatory Arbitrage in Digital Asset Markets (SSRN)

[January 2026] Marquette University's David Krause argues that the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act’s prohibition on “interest or yield” has been functionally nullified by intermediated distribution of USDC rewards via Coinbase. The paper shows that Coinbase USDC “rewards” track 3‑month Treasury bill yields with 98.7% correlation and about 95.6% pass‑through, leaving a stable roughly 20–25 basis point intermediation spread, and that enactment of the Act in July 2025 produces no statistically significant structural break in this relationship. This implies that prohibition‑only drafting around “interest” and “holders” is easily arbitraged by routing reserve income through exchange “distribution fees,” leaving the economic substance of a yield‑bearing instrument intact and re‑raising Howey and Reves securities classification risks for yield‑enhanced stablecoins. Krause proposes instead principles‑based reforms such as safe‑harbor yield bands, mandatory reserve‑income disclosure, and marketing limits, while highlighting unresolved questions on cross‑platform behavior, contract terms between issuers and exchanges, and robustness across interest‑rate cycles. [SSRN] See also: https://www.promarket.org/2026/03/11/regulatory-attempts-to-ban-stablecoin-yields-cannot-compete-with-economics/

#CryptoAssets #Regulation #Stablecoins #UnitedStates #USDC #DFC

·papers.ssrn.com·May 12, 2026

The GENIUS Act's "Interest" Prohibition: Evidence of Regulatory Arbitrage in Digital Asset Markets (SSRN)

Flight to Safety Evaluating Stablecoin’s Role as a Safe-Haven Asset in DeFi Markets (Philadelphia Fed)

The Federal Reserve Bank of Philadelphia published research that used on-chain wallet data, event studies, and nonlinear volatility models to assess whether Tether (USDT) functions as a flight-to-safety asset for Bitcoin (BTC) and Ethereum (ETH) holders during stress periods over 2020–2024. USDT serves as a retail-driven liquidity channel on Ethereum—small wallet holders display consistent defensive reallocation, particularly following the China crypto ban, FTX collapse, and SVB failure—whereas its role on the Bitcoin network is more muted and transactional; Wrapped Bitcoin (WBTC) shows stronger flight evidence than native BTC, confirming that USDT's function is network-dependent. Large wallet holders on Ethereum exhibit profit-maximizing rather than safety-seeking behavior, and results are sensitive to the volatility measure and model specification used. Hence, treating USDT as a uniform instrument for oversight is systematically miscalibrated—chain-specific and investor-type-specific regulation is warranted, with direct implications for the GENIUS Act and MiCA's redemption-at-par requirement. [Philadelphia Fed]

#CryptoAssets #FinancialStability #Stablecoins #Tether #Bitcoin #DeFi #Ethereum #Regulation #DFC

·philadelphiafed.org·May 12, 2026

Flight to Safety Evaluating Stablecoin’s Role as a Safe-Haven Asset in DeFi Markets (Philadelphia Fed)

Interconnect to Stabilize: Cross-Border Payments in a Fragmenting World (Banca D'Italia)

Banca d'Italia Governor Fabio Panetta argues that cross-border payments remain structurally deficient despite domestic progress, and that the G20 Roadmap's four targets—speed, cost, transparency, and access—remain unmet in the remittance segment, with average costs at 6.4% against a 3% objective. Bank of Italy researchers who posed as ordinary users and conducted actual stablecoin transfers found no systematic cost advantage once conversion fees into and out of crypto are included, with some corridors reaching 9%. Root causes include legal and time-zone complexity, fragmented messaging standards, a contracted correspondent banking network (down 30% since 2011), and opaque FX conversion costs. Panetta proposes national-level action plans along three lines: strengthening domestic infrastructure (ISO 20022, extended RTGS hours, central bank money as settlement anchor), improving regulatory frameworks (competition, transparency, FATF travel rule), and preserving global payment system openness. Whether geopolitical fragmentation via rival parallel systems, such as BRICS Pay, erodes interoperability is the key unresolved question. [Banca D'Italia]

#CrossBorder #Payments #Eurozone #Italy #Fintech #CryptoAssets #DFC

·bancaditalia.it·May 9, 2026

Interconnect to Stabilize: Cross-Border Payments in a Fragmenting World (Banca D'Italia)

The Impact of Stablecoins on the International Monetary and Financial System (BIS)

The Bank for International Settlements (BIS) published a paper that argues that dollar‑denominated stablecoins primarily reinforce existing currency hierarchies while creating new channels for digital dollarization in emerging markets and developing economies. They document rapid, dollar‑centric growth, with stablecoins already acting as private store‑of‑value and payment instruments that circumvent weak domestic banking systems and capital controls. This threatens monetary sovereignty and complicates capital‑flow management, while simultaneously deepening demand for short‑term United States public debt via reserve portfolios. The authors frame policy choices around three paths: niche crypto‑only use, destabilizing “digital dollarization,” and tightly regulated domestic integration. [BIS]

#Stablecoins #EMDEs #BIS #Fintech #CryptoAssets #Financial Stability #DFC

·bis.org·May 5, 2026

The Impact of Stablecoins on the International Monetary and Financial System (BIS)

The Impact of Stablecoins: Considerations for BaaS Banks (Crowe LLP)

Crowe LLP consultants argue that stablecoins pose a structural challenge to banking-as-a-service (BaaS) banks that extends beyond payments into deposit composition, treasury workflows, and customer relationships. With wallet-based infrastructure stablecoins consolidate functions previously distributed across multiple intermediaries. For BaaS banks, the disintermediation risk is less about individual payment flows than about becoming peripheral to the liquidity and settlement environments where fintech partnerships operate. The piece offers a tiered decision framework — monitor, prepare, or act — calibrated to fee-income exposure and partner behavior. However, whether stablecoin adoption remains confined to discrete use cases or becomes foundational infrastructure remains an unresolved question. [Crowe LLP]

#Fintech #Stablecoins #Regulation #FinancialStability #UnitedStates #DFC

·crowe.com·May 3, 2026

The Impact of Stablecoins: Considerations for BaaS Banks (Crowe LLP)

Banks in the Age of Stablecoins: Lessons from Their Historical Responses to Financial Innovations (FRB)

Federal Reserve Board (FRB) economists argue, in a May 2026 FEDS Note, that banks historically respond to disintermediation threats through regulatory advocacy, product innovation, and strategic partnership rather than passive retreat, and apply that framework to stablecoins. Drawing on the money market fund (MMF) episode of the 1970s–80s and the PayPal/Venmo experience, the authors show that banks eventually recaptured market share despite initial disadvantage. However, stablecoins present a compounded challenge, combining MMFs' regulatory-arbitrage dynamic with payment platforms' technological differentiation, while introducing faster potential run dynamics via 24/7 blockchain settlement. Whether aggregate deposit levels contract materially depends on how stablecoin issuers structure their reserves. [FRB]

#Fintech #Stablecoins #UnitedStates #Regulation #FinancialStability #DFC

·federalreserve.gov·May 3, 2026

Banks in the Age of Stablecoins: Lessons from Their Historical Responses to Financial Innovations (FRB)

Meta Rolls Out Stablecoin Payments (Coindesk)

Meta has rolled out digital currency payouts for select creators in Colombia and the Philippines. The payouts use the USDC stablecoin on either the Solana or Polygon blockchain networks, processed via Stripe’s Link wallet and accompanied by tax reporting from both Meta and Stripe. The initiative marks Meta's return to stablecoins after it attempted to introduce the Libra token, later renamed Diem, only to shut down the project amid regulatory scrutiny in 2022. [Coindesk] https://www.facebook.com/business/help/1141348158001625/

#Solana #Polygon #Stripe #Fintech #Facebook #Meta #Payments #Diem #Libra #Stablecoins #DFC

·coindesk.com·May 2, 2026

Meta Rolls Out Stablecoin Payments (Coindesk)

Qivalis Stablecoin Consortium Set to Add At Least 19 European Banks (Blockstories)

Blockstories reports that at least 19 additional European banks have committed to join the Qivalis euro-stablecoin consortium, potentially bringing total membership to over 30. The expansion spans 12 countries and includes both large institutions (e.g., Groupe BPCE, ABN AMRO, Nordea) and smaller banks, with further entrants pending approval. The consortium aims to build shared, MiCA-compliant infrastructure for a euro-denominated stablecoin targeted for H2 2026, rather than fragmented bank-specific tokens. The approach reflects resource constraints and strategic caution among banks toward crypto-native issuers, but leaves open questions on governance, adoption, and competitive positioning versus standalone or non-bank stablecoin models. [Blockstories]

#Stablecoins #Fintech #Europe #Eurozone #DFC

·blockstories.io·Apr 30, 2026

Qivalis Stablecoin Consortium Set to Add At Least 19 European Banks (Blockstories)

The Stablecoin Stumbling Block (FT)

The Financial Times (FT) published an article in which Daniel Heller argues that existing stablecoin designs are structurally unfit to serve as wholesale settlement assets at scale. He notes that post-crisis standards for financial market infrastructures require settlement in central bank money or assets with equivalent credit quality and intraday liquidity, a bar current stablecoin reserve and redemption models fail to meet. This matters because large-value payments and securities settlement depend on systemically robust “money,” and today’s stablecoins embed maturity, liquidity, and operational risks misaligned with that role. Heller sees potential in tokenized central bank money or purpose-built, narrow-balance-sheet wholesale stablecoins, but leaves open whether central banks will grant reserve access and how global oversight would be structured. [FT]

#Stablecoins #Fintech #CryptoAssets #Regulation #Settlement #DFC

·ft.com·Apr 30, 2026

The Stablecoin Stumbling Block (FT)

An Econometric Investigation on the Stability of Stablecoins (DNB)

De Nederlandsche Bank (DNB) published a working paper that argues that major USD‑denominated stablecoins exhibit heterogeneous and time‑varying volatility, challenging the assumption of uniform stability. Using a multi‑model framework focused on returns, they find USDC and TUSD are highly sensitive to monetary, macro‑uncertainty, market‑volatility, and crypto shocks, while USDT and DAI show muted, short‑lived responses and primarily absorb volatility. Time‑varying connectedness analysis indicates stablecoins are usually volatility sinks but become more tightly integrated with global risk factors during stress episodes with short‑horizon spillovers dominating in crises and long‑horizon co‑movement rising since 2021. The authors argue that stablecoins should not be treated as a single risk category and that differentiated, reserve‑sensitive prudential and liquidity standards are warranted as they become embedded in macro‑financial transmission. [DNB]

#Stablecoins #Fintech #CryptoAssets #DFC

·dnb.nl·Apr 28, 2026

An Econometric Investigation on the Stability of Stablecoins (DNB)

Are Stablecoins Fungible Money? (SUERF)

[November 2025] SUERF published a policy brief in which Charles-Enguerrand Coste and George Pantelopoulos argue that stablecoins can be fungible money only when anchored to central bank money and supported by interoperable, final settlement infrastructures. They define fungibility in retail payments as requiring settlement finality, interoperability across blockchains and traditional systems, and seamless convertibility into the “ultimate” means of payment, namely central bank money. Under these conditions, tokenized funds and off-chain collateralized stablecoins, and prima facie on-chain collateralized stablecoins with readily convertible collateral, can be treated as fungible means of payment comparable to bank deposits. [SUERF] See also: https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp3111~db48fc6139.en.pdf

#Fintech #Fungibility #CryptoAssets #Stablecoins #Regulation #DFC

·suerf.org·Apr 28, 2026

Are Stablecoins Fungible Money? (SUERF)

Reforming MiCA for Euro Stablecoins (Blockchain for Europe)

Blockchain for Europe published a report in which Ulrich Bindseil and Erwin Voloder propose reforms to the Markets in Crypto-Assets Regulation (MiCAR) to bolster euro-denominated electronic money tokens (EMTs). Core recommendations include permitting remuneration limited to reserve income pass-through, eliminating the 30-60% minimum bank deposit requirement to enable diversified high-quality liquid assets (HQLA) akin to liquidity coverage ratio standards, enhancing proportionate reserve transparency via standardized reporting, mandating stress testing and concentration limits, granting calibrated central bank deposit access for safeguarding, and clarifying cross-border multi-issuance frameworks. These adjustments aim to mitigate MiCAR's regulatory overreach—placing Europe on the downward-sloping Laffer curve for stablecoin competitiveness—while preserving prudential safeguards, reducing bank interdependencies, and elevating the euro's global on-chain role amid U.S. dollar dominance. [Blockchain for Europe]

#CryptoAssets #Europe #Regulation #Stablecoins #Fintech #DFC

·blockchain4europe.eu·Apr 28, 2026

Reforming MiCA for Euro Stablecoins (Blockchain for Europe)

Western Union to Launch Stablecoin Next Month (The Block)

Western Union will launch a Solana-based, U.S. dollar–backed stablecoin called USDPT next month, initially using it as an internal settlement rail with key agents in select countries as an alternative to SWIFT, enabling on-chain cross-border settlement even during traditional banking holidays. The firm is also rolling out a Digital Asset Network (DAN) that connects consumer crypto wallets to Western Union’s retail and agent network so users can cash out digital assets into local currency through familiar outlets, with the first partner going live this week. Later this year, Western Union plans a USD “Stable Card” in dozens of markets, allowing consumers—especially in inflation-prone countries—to hold dollar-denominated value in stablecoins and spend globally. [The Block]

#Fintech #Payments #Remittances #Stablecoins #CrossBorder #CryptoAssets #DFC

·theblock.co·Apr 28, 2026

Western Union to Launch Stablecoin Next Month (The Block)