From Stablecoins to Central Bank Digital Currencies – IMF Blog
Stablecoins Emerge as the Cornerstone of Illicit Crypto Activity in 2024
Chainalysis projects that the total volume of illicit crypto transactions for 2024 could surpass $51 billion, of which 63% involved stablecoins. This is part of a broader ecosystem trend in which stablecoins also occupy a sizable percentage of all crypto activity, due to their wide array of practical use cases in a range of markets. The upside from a financial integrity perspective, is that stablecoin issuers can and do freeze funds if they are made aware of their use by illicit actors. For example, Tether has frozen addresses of concern linked to scams, terrorist financing, and sanctions evasion, which can make stablecoins a poor tool for the transfer of value by illicit actors. Nonetheless, despite these ecosystem-wide trends, some forms of crypto crime, such as ransomware and darknet market sales, remain BTC-dominated. https://www.chainalysis.com/blog/2025-crypto-crime-report-introduction/
National Bank of Kazakhstan considering supporting CBDC-backed stablecoins
The National Bank of Kazakhstan (NBK) is now focusing on stablecoins backed by Digital Tenge — a concept that mirrors the idea of a synthetic central bank digital currency (CBDC). This approach essentially represents e-money fully reserved with liquidity in a Digital Tenge wallet, offering a secure and reliable foundation for digital transactions. Furthermore, the NBK will aim to extend the opportunity of stablecoin issuance to a broader range of players, including non-bank entities, fostering inclusivity and innovation across the ecosystem.
Stablecoins in the MiCA Regulation
This work offers a legal analysis of stablecoins. The pivotal legal framework for stablecoins under Europe's Markets in Crypto-Assets Regulation (MiCA). Despite its presence in MiCA, stablecoins lack a specific legal definition therein. The Regulation’s classification is based on whether crypto assets aim to stabilise their value relative to other assets. This paper focuses on the in-depth examination of the two subcategories of the Regulation that fall under the umbrella of stable crypto assets: asset-referenced tokens and electronic money tokens. It delves into their unique characteristics, including their vocation for stability and, in turn, the intriguing differences between the two subcategories.
Regulating Stablecoins in the European Union
This work describes the main features of those stalbecoins. Current rules seek to provide legal certainty for issuers of stablecoins in the UE (by imposing a common set of provisions applicable to all of them regarding their authorisation, governance requirements, etc.), give appropriate protection for holders of those crypto assets (by regulating their rights against issuers, the rules applicable to crypto-asset white papers or the marketing communications), or address potential financial stability and monetary policy risks that could arise from their use as a means of exchange (by monitoring or restricting the issuance).
Why everyone is wrong about stablecoins
According to Christian Catalini, network effects in the stablecoin market are likely to be much weaker than most anticipate, and it’s far from a winner-take-all environment. In fact, stablecoins may function as loss leaders and, without essential complementary assets, could even become a losing venture. And relying solely on reserve interest isn’t a sustainable way to monetise a stablecoin, and issuers will need to start competing with their own customers. While industry insiders often cite liquidity as the primary reason only a few stablecoins will dominate, the truth is far more complex.
Ripple partners with Chainlink to boost RLUSD stablecoin in DeFi markets
Ripple has partnered with Chainlink, a decentralized oracle network, to improve the adoption and utility of its Ripple USD (RLUSD) stablecoin in decentralized finance (DeFi) applications. The collaboration will provide price feeds for RLUSD on Ethereum and the XRP Ledger, which aim to support cost-effective transactions and DeFi use cases for the enterprise-grade stablecoin. https://ripple.com/ripple-press/ripple-adopts-the-chainlink-standard-to-further-rippleusd-utility-and-access-in-defi/
Ubyx and stablecoin ubiquity
Citibank's Tony McLaughlin has founded a new venture called Ubyx Inc. with the goal of stablecoin ubiquity. Ubyx makes stablecoins ubiquitous through acceptance at traditional financial institutions, neo-banks and fintechs all around the world. In doing so it strengthens the stablecoin ecosystem for users, issuers, accepting institutions and regulators. Stablecoin users will be able to deposit their stablecoins into their bank account, simpler than paying in a physical cheque. Stablecoin issuers will be able to access a global network of stablecoin acceptance through regulated financial institutions. And financial institutions will b able to offer a new payment option to their clients and be part of the public blockchain revolution.
Digital tool sheds light on stablecoin flows and regulation
The Cambridge Centre for Alternative Finance (CCAF) updated its Cambridge Digital Money Dashboard (CDMD), offering new insights into the geographical flows of stablecoins, as well as regulatory overviews for a wider set of jurisdictions. This new update was made possible through a joint work with Chainalysis, a blockchain data platform specializing in on-chain data analytics for investigations and compliance.
Hong Kong Government publishes Stablecoins Bill (John Ho)
The Hong Kong Government has published in the Gazette the Stablecoins Bill, which seeks to put in place a regulatory regime for issuers of fiat-referenced stablecoins (FRS) in Hong Kong. The Bill aims to enhance the regulatory framework for virtual asset activities (VAs), by addressing the potential financial stability risks posed by FRS, ensuring adequate user protection, and harnessing the potential benefits of VAs and their underlying technologies. https://www.gld.gov.hk/egazette/english/gazette/file.php?year=2024&vol=28&no=49&extra=0&type=3&number=31
NY regulator approves Ripple’s RLUSD stablecoin
Ripple Labs CEO Brad Garlinghouse reported that the New York Department of Financial Services (NYDFS) has approved the firm’s RLUSD stablecoin. Testing of RLUSD, which will be "complementary and additive" to Ripple's XRP, began on the XRP ledger and Ethereum mainnets in August 2024. https://x.com/bgarlinghouse/status/1866571228464460215
Central bank money as a catalyst for fungibility: the case of stablecoins
A paper co-written by a European Central Bank (ECB) staffer suggests required fungibility conditions for reserve asset-backed stablecoins issued by different issuers on different platforms. These include interoperable payment and settlement technologies, payment settlement finality, and seamless stablecoin convertibility into the quasi-ultimate means of payment (e.g., central bank money). Also, issuers should have sufficiently strong liquidity and capital positions to meet redemption obligations, including to cover potential variations in liquid off-chain asset price volatility.
The real story behind the death of Meta’s Libra: A “political kill”?
David Marcus, the former head of Diem (formerly Libra) at Meta, posted the chain of events that led to the death of the Diem blockchain-based payment network that was announced in 2019. According to his timeline, after two years of negotiations with regulators, they got to the cusp of approval by the U.S. Federal Reserve (Fed) of a limited rollout. However, the Fed got “cold feet” about the project, allegedly on warnings from Treasury Secretary Janet Yellen that it would be “political suicide” to approve it. Shortly thereafter, letters went out from U.S. government authorities to all the regulated Diem’s partners to expect a high level of scrutiny on all payment activities. At that point, partners started to dropped their support and Diem eventually folded in 2022. Marcus’s statements come after allegations of tech founders being debanked as part of the U.S. authorities’ “Operation Chokepoint 2.0”. https://decrypt.co/293947/operation-chokepoint-2-0-crypto-founders-silenced-by-secret-debanking
Huobi Cryptocurrency Exchange Launches Derivative Market
In October, Huobi announced the creation of what it calls a “stablecoin solution.” The project, known as HUSD, consists of Huobi’s own stablecoin asset which investors can use as a go-between to interact with four U.S. dollar-backed stablecoins currently listed on the exchange. HUSD will also be tradeable against other cryptocurrencies, beginning with controversial stablecoin Tether (USDT), followed by Bitcoin (BTC) and Ethereum (ETH).
Good News, Facebook Doubters: You Can Bet on Libra Being Delayed
CoinFLEX is offering physically-settled futures that will deliver Libra tokens if the so-called stablecoin is live by Dec. 30, 2020, or the settlement date. If Libra is not operational by then, investors will receive nothing and will have lost their initial investment.
Bitfinex Launches Tether-Settled Perpetual Contracts Based on European Equities
Crypto-asset exchange Bitfinex has launched tether (USDT)-settled perpetual contracts that track two European equity market indices (STOXX Europe 50 and Germany 30). Each contract offers up to 100x leverage and will be settled in stablecoin tether (USDT). A perpetual contract is similar to a traditional futures contract, but has no expiry and mimics a margin-based spot market. The perpetual contracts will be open for trading 24/7, unlike equity exchanges which are open for business for a limited number of hours, five days a week.
Moneyness: Some thoughts about the resilience of decentralized stablecoins
"If a decentralized blockchain protocol is worried about being shut down by the authorities, how can it defend itself? A recent discussion surrounding MakerDAO explores this question. MakerDAO (or just Maker) issues the Dai stablecoin, of which there are around $7 billion in circulation. Rune Christensen, the founder of Maker, sees a precedent for a clampdown on Maker in the US Treasury's recent sanctions on Tornado Cash, a mixer. He worries that the authorities may try to shut down Maker by seizing its assets, specifically its real-world assets, or "RWA." To counter this threat, Christensen suggests that Maker turtle into what he calls phoenix stance:"
Are interest rate swaps the next frontier of decentralized finance (DeFi)?
Decentralized finance (DeFi) is expanding into the world of interest rate swaps (IRS), a derivative instrument for exchanging fixed and variable interest rates, which account for more than $1 quadrillion in exchanged value per annum in traditional finance. DeFi firm Voltz Labs has launched a non-custodial automated market making (AMM) IRS trading platform based on the Aave and Compound DeFi USDT, USDC, DAI and ETH lending markets. However, IRS AMMs are challenged by DeFi markets' lack of fixed-rate products off which to price swaps. (Traditional markets offer both variable- and fixed-rate products.)
Tether to Shutter Euro Stablecoin as Key MiCA Deadline Looms
Tether will discontinue support for its EUR₮ euro stablecoin. As such, Tether has ceased minting EUR₮, with the last acquisition request processed in 2022, and new EUR₮ issuance requests are no longer accepted. Holders of EUR₮ on all blockchains should redeem their holdings by November 27th, 2025. In any case, there has been little demand for EUR₮ with only $27 million market capitalization, versus Circle's EURC $90 million and Stasis Euro's $130 million, and Tether's USDT's $132 billion (according to CoinGecko). Also, EUR₮ is not compliant with the European Union's Markets in Crypto-Assets Regulation (MiCA) which comes into force at the end of 2024. Under it, stablecoin issuers will be required to hold at least 60% of reserve assets in European banks, whereas Tether prefers to invest the bulk of its stablecoin reserves in short-term marketable government securities. https://tether.io/news/tether-updates-users-on-a-strategic-transition-to-better-support-community-driven-product-support/
Japan is wary of allowing banks to issue stablecoins, other than trust banks
"Last week the Financial Services Agency (FSA) presented some ideas relating to cryptocurrency and stablecoins to the Financial System Council Working Group on Payment Services. The FSA is reluctant to allow banks to issue stablecoins other than trust banks. For trust bank issued stablecoins, it wants to relax the reserve requirements which currently require all assets to be held in bank demand deposits. However, it also wants to impose the travel rule, requiring KYC for trust bank issued stablecoin transfers."
Stablecoins are doomed to fail – Preston Byrne
"A stablecoin that is collateralized by real assets and structured correctly (e.g., MakerDAO) is not a stablecoin, but a unit trust."
The Grumpy Economist: Basecoin
"I can see why investors would want to be Basis stockholders, and receive seignorage, and I can see why there is a headlong rush to issue new cryptocurrencies. The rush to buy the currencies, other than to get money out of China and Russia, does not seem that sensible, especially given that so many have such clearly hazy promises of long-run value. (The white paper is interesting but this is worth $113 million? I'm in the wrong business!)"
Untethered: The History of Stablecoin Tether and How It Has Lost Its $1 Peg | Coin Telegraph
Gemini Stablecoin Volume Doubles on Top 10 Exchange Amid Tether Turmoil - CoinDesk
"When the Tether (USDT) stablecoin's $1 peg broke down on Monday, traders looking for another dollar equivalent they could easily move between cryptocurrency exchanges had few other places to turn. One of those places was Bibox, the ninth-largest exchange by 24-hour adjusted volume, according to CoinMarketCap, which accounts for basically all trading – 96 percent at the time of writing – in the Gemini Dollar (GUSD), a dollar-pegged alternative to tether. (Gemini, the exchange founded by the Winkelvoss twins, does not currently offer trading pairs using its stablecoin.)"
Huobi's US Exchange Sees 30% Boost in Trading for Tether Alternative - CoinDesk
At HBUS, the U.S. affiliate of the Singapore-based Huobi exchange, both deposits and withdrawals of USDT "have increased by over 10x over the last two days," a company spokesperson told CoinDesk. And the investors making deposits appear to be set on swapping it for TrustToken's TrueUSD (TUSD) stablecoin, which launched earlier this year. While HBUS is a small exchange, ranking only 129th by adjusted total volume according to CoinMarketCap, it appears to be one of the very few in the world where investors can trade TUSD for bitcoin (Bittrex being another rare example).
Traders flee Tether as uncertainty mounts » Brave New Coin
Binance CFO Says Crypto Exchange Looking to Add New Stablecoins - CoinDesk
Nic Carter, a co-founder of Coinmetrics.io and partner at Castle Island Ventures, argued that stablecoins are currently used by traders who lack fiat on-ramps for regulatory arbitrage or want to avoid capital controls. “I don't believe traders will adopt the regulated alternatives, like the Gemini Dollar, which has anti-money laundering built into it," Carter told CoinDesk, adding: “To me, those aren't even playing in the same sandbox."
BitPay Launches Gemini and Circle Stablecoin Settlement Options - CoinWire
As per the firm’s announcement published October 15, BitPay has launched a new settlement option that would allow merchants to receive customer payments in both Gemini Dollars (GUSD) and Circle USD Coin (USDC). The move comes as a response to the growing demand for stablecoin, a cryptocurrency pegged to a stable asset.
TrueUSD Sees 30% Surge in Trading Volume as USDT Tanks - CoinWire
"U.S. cryptocurrency exchange HBUS reportedly saw a massive surge in trading volume between Tether (USDT) and another USD-backed stablecoin TrueUSD. According to a spokesperson from HBUS, both deposits and withdrawals of USDT on the exchange “have increased by over 10x over the last two days,” with the majority of investors increasingly trading the controversial stablecoin for TrueUSD (TUSD), another blockchain-based stablecoin launched earlier this year as part of the TrustToken asset tokenization platform."
One Coin to Rule Them All? Huobi Lets Users Swap Between Stablecoins | CCN
"According to the announcement, the HUSD solution aims to reduce the need to choose between multiple stablecoins, as well as to cut down transaction costs incurred when switching between these USD-pegged assets. It does so by automatically converting all stablecoin deposits on Huobi’s platform to its newly-launched HUSD “token,” which is native to the exchange and cannot be withdrawn. This platform token can be used for trading bitcoin, ether and any other digital asset listed on Huobi Global platform. HUSD can also be used at the time of withdrawals by converting itself back to the stablecoins, which could further be converted to fiat currencies."