As stablecoins continue to gain worldwide momentum, the International Monetary Fund (IMF) has called for global cooperation to avert potential macro financial stability risks related to the rapidly growing sector and to turn the industry “into a force for good.”

Stablecoins To Foster Innovation, Financial Inclusion

On Thursday, the IMF released a 56-page report discussing the growing influence of stablecoins, their potential use cases in mainstream financial markets, and the risks associated with the sector’s varying oversight.

Amid the sector’s rapid growth, the organization highlighted that the two largest stablecoins, USDT and USDC, have tripled their market capitalization since 2023, reaching a combined $260 billion. Meanwhile, their trading volume has increased by around 90% to $23 trillion in 2024, with Asia surpassing North America in stablecoin activity volume.

The IMF noted two major potential benefits from stablecoins. First, they could enable faster and cheaper cross-border payments, especially for remittances, which can cost 20% of the amount being sent and face some delays.

However, “being a single source of information, blockchains can greatly simplify the processes linked with cross-border payments and reduce costs,” the Fund’s economists explained in a blog post.

Second, stablecoins could expand financial access, driving innovation by increasing competition with established payment service providers, therefore, making retail digital payments more accessible to underserved customers.

They could facilitate digital payments in areas where it is costly or not profitable for banks to serve customers. Many developing countries are already leapfrogging traditional banking with the expansion of mobile phones and different forms of digital and tokenized money.

Notably, competition with already established providers could lower costs and lead to enhanced product diversity, “leveraging synergies between digital payments and other digital services.”

IMF Warns Of Fragmented Oversight

Despite their potential benefits, stablecoins also carry significant risks, the IMF explained, including de-pegging and collapsing if the underlying assets lose value or if users lose confidence in the ability to cash out. Per the report, this could also trigger fire sales of the reserve assets and disrupt financial markets.

Stablecoins could also accelerate a “currency substitution” dynamic, where individuals and companies abandon their national currency in favor of a foreign one, like US dollars or euros, due to instability or high inflation.

The organization noted that the dynamic decreases a country’s central bank’s ability to control its monetary policy and serve as the lender of last resort, damaging the financial sovereignty of affected nations.

In addition, the potential to reduce cross-border frictions and make faster and cheaper transactions could be undermined by a lack of interoperability if various networks are unable to connect or are restricted by different regulations and other hurdles.

“Stablecoin regulation is in its infancy, so the ability to mitigate these risks remains uneven across countries,” the organization affirmed, noting that “the IMF and the Financial Stability Board have issued recommendations to safeguard against currency substitution, maintain capital flow controls, address fiscal risks, ensure clear legal treatment and robust regulation, implement financial integrity standards, and strengthen global cooperation.”

As reported by Bitcoinist, the FSB vowed in October to address the evolving threats from private finance and the growing use of stablecoins, promising to increase the global watchdog’s policy response and overhaul its surveillance system to make it more flexible and quicker.

Nonetheless, major jurisdictions have taken different stances in key areas, as the IMF detailed, which could result in the exploitation of gaps between jurisdictions and issuers to locate where oversight is weaker.

All this underscores the need for strong international cooperation to mitigate macrofinancial and spillover risks (…). Tokenization and stablecoins are here to stay. But their future adoption and the outlook for this technology are still mostly unknown.

The organization concluded that “improving the existing global financial infrastructure might be easier than replacing it. Achieving the best possible balance will require close cooperation among policymakers, regulators, and the private sector.”

Arthur Hayes, the BitMEX co-founder, warned late last month that Tether’s shift into Bitcoin and gold could leave the stablecoin exposed if those assets tumble.

According to Hayes, a roughly 30% drop in Tether’s BTC and gold holdings could erase the company’s equity and leave USDT vulnerable.

His comments touched off fresh debate about how much of the company’s true financial strength is visible to the market.

The Tether folks are in the early innings of running a massive interest rate trade. How I read this audit is they think the Fed will cut rates which crushes their interest income. In response, they are buying gold and $BTC that should in theory moon as the price of money falls.… pic.twitter.com/ZGhQRP4SVF

— Arthur Hayes (@CryptoHayes) November 29, 2025

Tether Is Far Stronger Than It Looks: Former Citi Analyst

A former Citi research lead, who goes by the name “Joseph”, pushed back on Hayes’s scenario. Based on reports, Joseph said public attestations only show the assets that directly back outstanding USDT and do not capture the full corporate balance sheet.

I spent 100’s of hours writing research on tether for @Citi. @CryptoHayes missed a few key points.

1) 𝐓𝐡𝐞𝐢𝐫 𝐝𝐢𝐬𝐜𝐥𝐨𝐬𝐞𝐝 𝐚𝐬𝐬𝐞𝐭𝐬 =/ 𝐚𝐥𝐥 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐚𝐬𝐬𝐞𝐭𝐬

When tether generates $ they have a separate equity balance sheet which they don’t… https://t.co/pHSRr245Up

— Joseph (@JosephA140) November 30, 2025

He told reporters he spent hundreds of hours reviewing filings and market data and estimates Tether’s total equity could be in the $50–$100 billion range — a cushion much larger than what critics point to when they focus on attested reserves.

Reported Buffers

According to Joseph’s calculations, Tether holds about $120 billion in US Treasuries that are earning roughly 4%, which he says could generate about $10 billion a year in net income.

He also cited other corporate assets that are not part of public reserve snapshots — equity stakes, mining operations, and additional Bitcoin holdings — all of which, he argues, strengthen Tether’s overall capital position.

Paolo Ardoino, Tether’s CEO, has publicly cited roughly $30 billion in “group equity” as part of the firm’s buffer against shocks.

re: Tether FUD

From latest attestation announcement (Q3 2025):

“Tether will continue to maintain a multi-billion-dollar excess reserve buffer and an overall proprietary Group equity approaching $30 billion.”

Tether had (at end of Q3 2025) ~7B in excess equity (on top of the…

— Paolo Ardoino (@paoloardoino) November 30, 2025

Hayes’s Warning And The Transparency Question

Hayes’s point, however, rests on a simple math worry: volatile assets can move fast, and marked declines would reduce the value of reserves.

He framed Tether’s move into Bitcoin and gold as a macro hedge against expected rate cuts, but said that hedge could backfire under a sharp sell-off.

Reports have noted that because attestations focus on backing for USDT supply, they may not reveal how much of the company’s other assets would be available in a crisis — a gap that keeps some investors uneasy.

What The Debate Means For Markets

The clash highlights two facts. One: there are sizable numbers involved — $120 billion in Treasuries, a roughly $30 billion equity figure cited by management, and the $50–$100 billion range estimated by Joseph.

Two: the core issue is disclosure. If Tether’s broader holdings can be marshalled quickly in a stress event, the company may handle big swings. If not, volatility could create trouble for short-term liquidity even if long-term equity is large.

Featured image from Pexels, chart from TradingView

RedotPay has announced a new partnership with Ripple to improve its stablecoin payout infrastructure and broaden access to lower-cost cross-border transactions.

@RedotPay is proud to partner with @Ripple and integrate Ripple Payments to launch “Send Crypto, Receive NGN,” enabling users to send XRP or #stablecoins and receive NGN in minutes, not days. pic.twitter.com/Ndtj9TPQVE

— RedotPay Official (@RedotPay) December 2, 2025

The fintech is launching its “Send Crypto, Receive NGN” feature, which allows users to convert digital assets into Nigerian naira (NGN) through Ripple Payments, Ripple’s licensed cross-border payment solution.

Crypto-to-NGN Transfers

The new NGN payout feature allows verified users with local bank accounts to convert supported digital assets directly into NGN, with settlement typically taking place within minutes.

According to RedotPay, the integration is intended to simplify the user experience and provide a more cost-effective alternative to traditional remittance channels.

Michael Gao, CEO and Co-Founder of RedotPay, said near-instant NGN payouts mark milestone for the platform. He notes that the company’s goal is to make stablecoin-based payments “as easy to use as local currency,” allowing users to send XRP or other supported assets and receive NGN securely and quickly.

Gao adds that the partnership with Ripple will extend RedotPay’s global reach while improving the reliability and accessibility of its services.

Targeting Long-Standing Remittance Inefficiencies

Global remittances continue to face structural challenges. Traditional transfers often involve high fees—averaging 6.49% globally—and settlement times ranging from one to five business days.

These inefficiencies have helped accelerate adoption of digital alternatives, with Chainalysis identifying Asia Pacific as the fastest-growing region for on-chain stablecoin usage, particularly for trading and remittances.

RedotPay said it aims to address these issues by leveraging Ripple Payments’ underlying blockchain infrastructure to deliver transparent pricing and accelerated settlement.

The NGN payout feature currently supports a wide range of cryptocurrencies including USDC, USDT, BTC, ETH, SOL, TON, S, TRX, XRP, and BNB, with Ripple’s RLUSD slated for future integration. Once a user sends a supported asset through RedotPay, the designated bank account receives NGN directly.

Jack Cullinane, Head of Commercial for Asia Pacific at Ripple, said the partnership highlights the real-world utility of Ripple Payments in reducing friction in cross-border transactions and improving accessibility for both consumers and businesses.

“Send Crypto, Receive NGN” expands on RedotPay’s existing multi-market offerings, which include BRL and MXN payouts. The service targets globally mobile users such as digital nomads, freelancers, and entrepreneurs, as well as individuals working abroad who require efficient ways to send funds back home. By extending its stablecoin-powered payout channels, RedotPay aims to broaden access to emerging markets where traditional remittance services remain slow and expensive.

Stablecoins for Wider Global Use

RedotPay said with the Ripple partnership strengthening its settlement infrastructure, the company plans to further scale its regional offerings and bring faster, more affordable crypto-enabled remittances to underserved markets.

The post RedotPay Integrates Ripple Payments to Expand Stablecoin Transfers appeared first on Cryptonews.

Corporations are in a hurry to pivot to the blockchain, but they're turning up their nose at bitcoin.

Hong Kong’s stablecoin hub dreams have reportedly taken a hit after the People’s Bank of China (PBOC) singled out the sector for the first time while reaffirming its long-standing position on the crypto industry.

Beijing’s Latest Warning Targets Stablecoins

Legal experts and analysts suggested that Beijing authorities have clouded Hong Kong’s ambitions to become a key regulated hub for stablecoins following the PBOC’s explicit crackdown on the sector last week.

As reported by Bitcoinist, the People’s Bank of China, alongside other top financial regulators, affirmed on Friday that stablecoins do not qualify as legal tender in the mainland, as they fail to meet regulatory requirements and pose a risk of being used for illegal activities.

“Virtual currency-related business activities constitute illegal financial activities. Stablecoins are a form of virtual currency, and currently cannot effectively meet requirements for customer identification and anti-money laundering, posing a risk of being used for illegal activities such as money laundering, fundraising fraud, and illegal cross-border fund transfers,” the PBOC stated.

According to the South China Morning Post (SCMP), the recent pronouncement sank previous hopes that Beijing might have softened its stance on cryptocurrencies amid the global regulatory shift toward the sector, led by the United States. Moreover, it could affect Hong Kong’s efforts to become a hub for the stablecoin sector, analysts recently stated.

In a blog post cited by SCMP, Liu Honglin, founder of Shanghai-based Mankun Law Firm, affirmed that “all the ambiguity, speculation and room for wishful thinking surrounding stablecoins over the past few years has vanished as of today.”

Similarly, Brian Tang, founding director of the Law, Innovation, Technology and Entrepreneurship Lab at the University of Hong Kong’s Faculty of Law, told the news media outlet that Beijing’s latest stance means that applicants for Hong Kong’s stablecoin licenses would need to “‘carefully reconsider’ whether the use cases they had submitted to the HKMA ‘touch mainland China issuers and users.’”

Hong Kong Licenses Approval Risks Delay

The statement also adds to the challenges that Hong Kong’s stablecoin push faces, the report noted. Earlier this year, the Hong Kong Monetary Authority (HKMA) enacted the Stablecoins Ordinance, which directs any individual or entity seeking to issue a fiat-referenced stablecoin (FRS) in the jurisdiction, or any Hong Kong Dollar (HKD)-pegged token, to obtain a license from the financial regulator.

Following the rollout, multiple companies have applied for the license, with more than 30 applications filed, according to SCMP, including logistics technology firm Reitar Logtech and the overseas arm of Chinese mainland financial technology giant Ant Group.

E-commerce giant JD.com, through its fintech arm JD Coinlink, started testing HKD-pegged tokens under the regulator’s sandbox program earlier this year. In August, Wang Hua, CFO and Board Secretary of PetroChina, also disclosed that the company is closely monitoring the latest developments regarding the HKMA Stablecoins Ordinance.

It’s worth noting that Hong Kong’s regulatory agency previously affirmed that the first batch of stablecoin issuer licenses would be approved at the start of 2026. However, some industry players told the news media outlet that the PBOC’s recent declarations could delay HKMA’s timeline.

An HKMA spokesperson stated that the regulator is currently reviewing the application and aims to begin with a few permits. Nonetheless, the spokesperson added that even if Hong Kong proceeds with the original schedule, projects involving the yuan or mainland Chinese institutions could be delayed.

“I do not think we will see offshore yuan stablecoin projects [in Hong Kong] within the next one or two years … as that conflicts with the current tone,” he said. Meanwhile, Syed Musheer Ahmed, founder of FinStep Asia, concluded that institutions from the mainland “will have to wait” before issuing stablecoins in the city.

Sony Bank, the banking division of tech giant Sony, is reportedly issuing its US dollar-pegged, GENIUS-regulated stablecoin for US customers as early as fiscal 2026, Nikkei reported Monday.

The Group plans to roll out its 1:1 USD-pegged stablecoin for payments and settlement within its gaming and anime business.

Until now, Sony customers have paid for subscriptions via credit cards and other means, the report added. Launching a stablecoin would potentially reduce fees paid to credit card issuers.

Sony’s Stablecoin Debut and Challenges

Sony took the US markets by surprise in October by filing for an OCC application to establish a national crypto bank charter under its subsidiary “Connectia Trust.”

If approved, Sony would be among the major tech firms to receive stablecoin stablecoin-tied U.S. bank charter.

Sony has filed with the @USOCC to create Connectia Trust, a national crypto bank set to issue a U.S. dollar–backed stablecoin#Sony #Stablecoin #OCChttps://t.co/6vGJud8E7W

— Cryptonews.com (@cryptonews) October 16, 2025

However, on November 6, the Independent Community Bankers of America (ICBA) wrote a letter to the US OCC, “strongly opposing” Sony Bank’s application.

The Group accused that the approach is designed to receive the benefits of a U.S. bank charter without becoming subject to the full scope of U.S. bank regulations.

ICBA added that Connectia’s model exceeded the traditional scope of trust banks. An approval would weaken the historical separation of banking and commerce, pivoting the field against community banks, it added.

US Stablecoin Market Expands Rapidly

The announcement comes at a time when stablecoins are increasingly influencing international finance and U.S. fiscal stability.

The total market cap of two of the largest USD-pegged stablecoins – Tether’s USDT and Circle’s USDC – accounts for $260 billion, DefiLlama data shows. Further, the total stablecoin market capitalization now exceeds $306 billion.

Standard Chartered issued a dire warning recently, suggesting that over $1 trillion could flow out of emerging-market (EM) banks and into stablecoins by 2028, as adoption of dollar-pegged crypto assets accelerates globally. This makes Sony’s entry well-timed for a rapidly growing sector of the digital economy.

The post Sony Bank to Issue USD-Pegged Stablecoin Starting Early 2026 – Report appeared first on Cryptonews.

Crypto firm Ripple recently achieved a major milestone, providing a bullish outlook for the XRP price. XRP is also seeing significant demand amid the launch of the U.S. spot ETFs, which could trigger a price surge for the altcoin. 

Ripple Developments That Are Bullish For The XRP Price

In a press release, Ripple announced that its stablecoin RLUSD has gained recognition as an accepted Fiat-Referenced token by Abu Dhabi’s financial regulator. This enables the use of the stablecoin within the region’s financial markets. This marks a positive for the XRP price, as it could boost RLUSD’s demand, thereby increasing the demand for the altcoin as the native token of the XRP Ledger. 

Notably, the on-chain analytics platform Sentora (formerly IntoTheBlock) recognized RLUSD as one of the fastest-growing stablecoins, with its market cap increasing by 38.8% over the last month. Meanwhile, this development follows Ripple’s completion of the Hidden Road deal, which also strategically boosts RLUSD demand and positively impacts the XRP price.  

Meanwhile, crypto pundit SMQKE recently highlighted a U.S. Consumer Financial Protection Bureau report that acknowledged Ripple’s role in revolutionizing the cross-border payments industry through XRP. The report also suggested that Ripple’s payment system could be integrated into the traditional financial system, which would also be huge for the XRP price. 

Notably, the report specifically alluded to Ripple’s growth and expanding partnerships, which could make its payment platform the go-to choice for cross-border remittances. Meanwhile, XRP serves as the bridge currency for the effective settlement of these transfers. It is worth mentioning that Ripple Chief Technology Officer (CTO) David Schwartz has also assured that stablecoins cannot replace XRP’s role as the bridge currency on the XRP Ledger (XRPL). 

XRP’s Demand Is On The Rise

A CryptoQuant analysis revealed that the XRP reserves on Binance are plummeting, which could also trigger an XRP price surge. This development comes amid the launch of the U.S. XRP ETFs. The analysis suggested that institutional demand for the altcoin via these ETFs may have contributed to the decline in Binance’s reserves. 

Binance’s XRP reserves are said to have been steadily decreasing since October and have now dropped to around 2.7 billion XRP, which is one of the lowest levels ever on the exchange. CryptoQuant revealed that roughly 300 million XRP have left the exchange since October 6. The analysis noted that this indicates that real demand is building, which is bullish for the XRP price. 

Bitcoinist recently reported that institutions last week dumped Bitcoin, Ethereum, and Solana for XRP, which was one of the few majors to record inflows amid the broader outflows from crypto funds. If this demand trend for XRP continues, the CryptoQuant analysis stated the XRP price could enter a more structured phase amid expanding institutional interest. 

At the time of writing, the XRP price is trading at around $$2.21, up in the last 24 hours, according to data from CoinMarketCap.

Bolivia has moved to bring stablecoins into its formal banking system, a shift that could change how people save and pay for things in the country. Banks will be allowed to offer accounts, custody and payment services tied to stablecoins such as USDT, government statements and local reports disclosed.

The move follows a sharp rise in crypto use as people seek ways to hold dollar-pegged value amid currency pressure.

Banks To Offer USDT Accounts

Reports have disclosed that Economy Minister Jose Gabriel Espinoza announced the change, and at least one lender, Banco Bisa, has already begun offering custody and transfer services for USDT.

Based on reports, crypto transactions in Bolivia jumped dramatically last year, with some counts showing growth of more than 500% and figures putting crypto activity at $294 million in the first half of 2025. Those numbers have pushed regulators and banks to respond more directly.

BREAKING: Bolivia to integrate Bitcoin and crypto into its financial system, starting with stablecoins pic.twitter.com/Qb0Tj7pern

— Bitcoin Archive (@BitcoinArchive) November 26, 2025

Everyday Payments And Savings

People and businesses are reportedly testing USDT for real payments. Some shops and service providers have shown prices in USDT, and certain sectors — such as car dealers and firms handling imports — are said to be accepting stablecoin payments for some transactions.

According to market observers, the change is partly a response to shortages of physical US dollars and to rising costs that make the local currency less stable for saving. Banks will be able to create savings products denominated in stablecoins, and may offer loans or payment options tied to them.

Cross-Border Transfers And Remittances

Based on reports, one obvious use will be cross-border transfers. Stablecoins can offer a dollar-pegged option when access to actual US dollars is limited.

That could help businesses that buy fuel or other imports and families that receive money from abroad. Still, practical hurdles remain: many people are unbanked or lack easy internet access, and broad adoption will take infrastructure, training and clear consumer protections.

Regulatory Limits And Risks

According to analysts, the government’s plan does not make stablecoins legal tender in place of the boliviano. Rather, it lets regulated banks provide crypto-linked services under the financial system.

That means accepting USDT will likely stay voluntary for merchants. There are also risks to watch: stablecoin liquidity, custody safety, and how well banks manage anti-money-laundering rules. Consumer education and stronger oversight will be needed to protect ordinary users.

What Comes Next

Several months of rollout and pilot programs are expected, and observers will be watching transaction volumes and how many banks and businesses sign on.

If the system grows, Bolivia could become an example for neighboring countries facing similar currency stress. But the deeper economic problems that pushed people to crypto — inflation and limited dollar access — will still need government solutions beyond new payment rails.

Based on current reports, the change is a clear policy shift toward regulated crypto use in everyday finance. It is small steps now, but they may matter a lot to people trying to keep their savings stable and move money across borders.

Featured image from Pexels, chart from TradingView

Dark days for the bros.

• Bolivia lets banks offer crypto services to counter inflation and dollar scarcity.
• Stablecoins gain traction in Bolivia as businesses and consumers hedge a weakening boliviano.
• Government pairs digital finance push with major new financing and tax reforms.

Bolivia is turning to cryptocurrencies and stablecoins in a sweeping effort to stabilise an economy strained by high inflation, a widening fiscal deficit, and a persistent shortage of US dollars.

The initiative is emerging as a central pillar of the government’s broader plan to modernise the financial system and revive investment under President Rodrigo Paz.

Crypto push in Bolivia gains steam

The shift marks a major policy change for the country, which only lifted a longstanding ban on crypto last year.

Economy Minister Jose Gabriel Espinoza confirmed that banks will now be allowed to custody digital assets and offer crypto-based savings accounts, loans, and credit cards.

The move effectively brings stablecoins such as USDT into the formal financial system, giving them a role similar to legal tender.

Espinoza said the decision reflects the practical reality that cryptocurrencies cannot be contained by national borders. He noted that recognising and integrating them is more efficient than trying to enforce old restrictions.

This approach follows a regional trend, as several Latin American economies hit by inflation turn to digital assets as a hedge against currency depreciation.

Bolivia’s inflation, in particular, has averaged above 22% over the past year, eroding the value of the boliviano and pushing residents toward alternatives that hold value more reliably.

As a result, stablecoins, which maintain a one-to-one link to assets such as the US dollar, have become a popular escape hatch for households and businesses looking to shield their savings from further losses.

Pressure from inflation and dollar scarcity

Businesses across Bolivia have already begun pricing goods in USDT, responding to the sharp shortage of physical dollars that has disrupted imports and raised costs.

Vehicle manufacturers, including Toyota, Yamaha, and BYD, started accepting stablecoins in September after struggling to secure dollars for transactions.

The state-owned energy company YPFB has also revealed plans to create a system allowing crypto-denominated payments for energy imports, though details are still being developed.

Stablecoins offer a workaround for strict currency controls that limit access to foreign currency.

Anyone with a mobile phone and a crypto wallet can now hold dollar-pegged tokens without going through banks that enforce tight restrictions.

This ease of access has been a major factor behind the rapid rise in crypto volumes following the regulatory shift last year.

Financing push alongside crypto reforms

The government’s crypto strategy is unfolding alongside a wider effort to shore up the economy through new financing and investment incentives.

Espinoza announced that Bolivia is negotiating more than $9 billion in multilateral financing for public and private projects, far above initial projections.

Roughly a third of the funds could arrive within two to three months, providing support for infrastructure, renewable energy, and financial inclusion initiatives.

The announcement lifted Bolivia’s dollar bonds, which reached their highest levels since 2022.

The government has also moved to scrap the wealth tax and eliminate taxes on financial transactions to attract private capital and encourage investment.

These measures still require congressional approval, but they signal a significant shift away from the state-heavy policies of previous administrations.

Paz has pledged a market-oriented approach while avoiding shocks that could undermine the country’s social programs.

The administration plans to cut public spending by 30% in the 2026 budget, though officials stress that the decision was made independently and not under pressure from the International Monetary Fund.

The post Bolivia eyes crypto and stablecoins to fight inflation and US dollar shortage appeared first on CoinJournal.

• Paxos purchases an institutional wallet provider in a $100M deal.
• The move leverages Fordefi’s MPC wallet for a regulated custody framework.
• DeFi is increasingly becoming part of the mainstream monetary infrastructure.

Paxos, a reputable blockchain infrastructure company behind multiple stablecoins, confirmed the acquisition on Forderfi late on Tuesday.

While the firms didn’t reveal the transaction’s value, sources close to the matter suggest that the deal exceeds $100 million, reflecting one of the most aggressive and strategic expansions in recent years.

The team emphasized:

This strengthens our ability to support institutions with more flexible and sophisticated digital asset infrastructure.

For context, Fordefi is a thriving enterprise wallet and custody provider.

This acquisition comes as institutions are moving to on-chain operations at an unprecedented pace.

Companies exploring blockchain technology like tokenized assets, complex DeFi strategies, and stablecoin settlements are seeking secure, modular custody.

Paxos aims to satisfy this demand by merging its compliant custodial infrastructure with Fordefi’s policy-centered MPC (multi-party computation) wallet tech.

Commenting on the strategic purchase, Paxos co-founder and CEO Charles Cascarilla said:

Together, Paxos and Fordefi provide customers with a world-class custody solution built upon advanced wallet technology and regulated, qualified custody. We’re excited to welcome Fordefi to our team as we enter this new phase of growth.

Paxos enriches its enterprise playbook

Businesses venturing into the blockchain and crypto sectors have leveraged Paxos for compliant infrastructure and custody.

The firm maintains a high-end regulatory model, with supervision from Singapore’s MAS, the NYDFS in the US, Abu Dhabi’s FSRA, and FIN-FSA in Europe.

Moreover, its tokenization and stablecoin systems power fiscal settlements for leading companies, including MasterCard, Nubank, PayPal, and Interactive Brokers.

Now, Paxos is integrating Fordefi to offer its customers a unified platform that supports everything from asset tokenization and issuance to streamlined access to DeFi protocols.

CEO Cascarillar added:

Fordefi has built an impressive stack and customer base founded on easy-to-use APIs and seamless web3 connectivity. Market participants require a regulated platform partner that meets their range of complex custody needs.

The fast-growing Fordefi

Fordefi has grown into a reputable institutional wallet provider in the DeFi industry since its 2021 launch.

The platform boasts two crucial features.

First and foremost, Fordefi’s MPC-based address model reduced single-point failure risks.

On the other hand, the policy engines enable enterprises to handle compliance rules, risk management, and permissions across decentralized and centralized setups.

Fordefi currently secures over $120 billion in monthly transactions, supporting nearly 300 enterprises, including hedge funds, crypto-native companies, and trading desks.

Josh Schwartz, CEO of Fordefi, believes Paxos will heighten its reach while aligning with its primary missions. He said:

Fordefi has built a best-in-class wallet platform trusted by nearly 300 institutions. Joining Paxos allows us to bring our technology to an even broader audience while maintaining our focus on security, usability, and innovation. Together, we will offer enterprises the unified custody and stablecoin infrastructure they need to deploy real-world digital asset use cases at scale.

For now, Fordefi will operate independently as Paxos pursues a phased integration.

The post Stablecoin issuer Paxos acquires Fordefi to strengthen institutional DeFi access appeared first on CoinJournal.

• Klarna launches KlarnaUSD, a USD-pegged stablecoin, on Stripe and Paradigm’s Tempo chain.
• KlarnaUSD targets cheaper cross-border payments before wider consumer rollout.
• Stablecoin market surges past $300B as major fintechs adopt blockchain rails.

Klarna has taken a major step into digital finance with the announcement of KlarnaUSD, a USD-pegged stablecoin built on Tempo, the new layer-1 blockchain developed by Stripe and Paradigm.

Introducing KlarnaUSD, our first @Stablecoin.

We’re the first bank to launch on @tempo, the payments blockchain by @stripe and @paradigm.

With stablecoin transactions already at $27T a year, we’re bringing faster, cheaper cross-border payments to our 114M customers.

Crypto is…

— Klarna (@Klarna) November 25, 2025

The move signals a decisive shift for the Swedish digital bank, which is preparing to integrate blockchain technology more deeply into its global payment systems.

Klarna steps into crypto

KlarnaUSD is now live on Tempo’s testnet, with a full mainnet rollout planned for 2026.

The stablecoin is issued through Bridge, Stripe’s dedicated stablecoin infrastructure product, giving Klarna a direct connection to one of the most advanced payment-focused blockchain stacks.

Notably, Klarna is the first financial institution to issue a token on Tempo, a blockchain engineered specifically for fast and low-cost payments.

Klarna explained that the token will first support internal payment flows.

The goal is to cut the cost of cross-border transfers, a persistent expense for global fintech companies.

After the mainnet rollout, the digital bank has signalled plans to extend KlarnaUSD to merchants and consumers after internal testing.

That expansion would build on Klarna’s broad checkout and instalment-payment network, though the firm says there are currently no plans to integrate the stablecoin into its buy now, pay later product.

Klarna’s push to cut global transfer costs

Klarna’s CEO, Sebastian Siemiatkowski, once sceptical of crypto, has now embraced blockchain’s potential in payments.

Siemiatkowski said that crypto has reached a stage where it is “fast, low-cost, secure, and built for scale,” describing KlarnaUSD as the beginning of a broader strategy.

With more than 114 million customers and $112 billion in annual gross merchandise volume, Klarna believes it has the scale to shift how global payments work.

The bank’s partnership with Stripe has been central to this push. Stripe already processes much of Klarna’s traffic, and Tempo provides the infrastructure for more efficient settlement.

Cross-border payments cost consumers and businesses around $120 billion each year, and KlarnaUSD is expected to cut a significant portion of these fees.

Early estimates across the industry suggest blockchain-based rails can reduce international payment costs by up to 90% compared to traditional networks.

Furthermore, KlarnaUSD’s launch comes at a moment when stablecoin usage is surging, with annual transaction volume already surpassing $27 trillion, according to McKinsey.

The global stablecoin market capitalisation has climbed from $260 billion in July to about $304 billion by November, with much of this growth coming after the passage of the US GENIUS Act, the first federal law governing stablecoins.

Treasury Secretary Scott Bessent expects stablecoins to reach a $3 trillion market cap by 2030, a scale that could save the US government $114 billion annually.

A market expanding at record speed

Other major companies are also entering the stablecoin arena.

MetaMask launched mUSD earlier this year, and Western Union plans to deploy a stablecoin on Solana in 2026.

Visa added support for the Global Dollar token and expanded settlement capabilities across Stellar and Avalanche.

The momentum suggests that stablecoins are becoming a central pillar in global financial infrastructure.

Klarna’s entrance adds another high-profile name to this growing list.

The bank recently listed on the New York Stock Exchange, raising $1.37 billion and reinforcing its financial position despite its stock hovering near 52-week lows.

Strong liquidity gives Klarna room to explore blockchain-based products, with executives hinting that more crypto-related projects are on the way.

As KlarnaUSD moves toward mainnet, eyes will be on how the firm integrates the token into its global operations.

If successful, KlarnaUSD may become one of the clearest examples yet of how established fintech companies can use blockchain to update old payment systems, and potentially redefine the future of cross-border money movement.

The post Sweden’s Klarna announces KlarnaUSD stablecoin, set to go live on Tempo appeared first on CoinJournal.

• India’s ARC stablecoin, being developed in partnership with Polygon and Anq, will launch in early 2026.
• Tokens will be minted only for business accounts with full collateral backing.
• The stablecoin will operate with the RBI CBDC to retain liquidity and enable faster payments.

India’s Asset Reserve Certificate (ARC) stablecoin, a fully backed rupee stablecoin set to debut in the first quarter of 2026, is being developed through a partnership between Ethereum scaling giant Polygon Labs and Bengaluru-based fintech firm Anq.

The stablecoin aims to modernise India’s payments landscape while keeping financial flows within the country and strengthening demand for government debt instruments.

ARC stablecoin and India’s central bank digital currency (CBDC)

The ARC stablecoin is designed to operate alongside India’s central bank digital currency (CBDC), providing a regulated private-sector layer while the RBI’s CBDC serves as the ultimate settlement instrument.

This two-tier framework allows the ARC to facilitate faster, cheaper payments and programmable transactions without undermining monetary sovereignty or regulatory oversight.

By integrating blockchain-based innovation with India-focused fintech knowledge, the project seeks to bridge the gap between traditional banking systems and decentralised technologies.

Fully collateralised and pegged 1:1 to the Indian rupee, the ARC will only be minted when sufficient reserves are held in cash, government securities, or fixed deposits.

ARC issuers will be authorised exclusively for business accounts, in line with the Liberalised Remittance Scheme (LRS) rules and partial convertibility guidelines.

Transactions will also be limited to whitelisted addresses through Uniswap v4 protocol hooks, ensuring that the stablecoin remains secure, compliant, and fully traceable within India’s financial ecosystem.

Keeping liquidity at home

One of the primary motivations behind the ARC is to curb capital outflows into dollar-backed stablecoins, which have gained traction in emerging markets following regulatory shifts in the United States.

Indian authorities have expressed concern that rising demand for global stablecoins like USDT and USDC could draw liquidity away from domestic markets, potentially destabilising local banks and slowing government borrowing.

By anchoring the ARC to the rupee and pairing it with robust compliance mechanisms, India seeks to retain financial innovation and liquidity within its borders while supporting demand for government debt.

The stablecoin also aims to address operational inefficiencies in existing payment systems. ARC transactions promise near-instant settlements, reducing reconciliation delays and lowering costs for businesses handling high transaction volumes.

If successful, the ARC stablecoin could help establish confidence in rupee-based digital assets, offering a local alternative to global stablecoins and reinforcing India’s position in the broader digital economy.

Strategic timing and market implications

The timing of the ARC’s rollout is strategic, coming as countries worldwide explore regulated stablecoins to accelerate cross-border payments and improve liquidity.

Also, by leveraging Polygon’s Ethereum infrastructure and Anq’s domestic expertise, India hopes to create a scalable, compliant platform that could integrate with existing systems such as UPI and Polygon CDK networks.

Experts in the local crypto community have already hailed the development as a transformative move that may reduce outflows of Indian capital during market surges and strengthen the country’s digital finance ecosystem.

However, the success of the Arc stablecoin will depend on adoption by banks, fintech firms, and regulators, as well as its ability to complement the RBI CBDC.

The post India taps Polygon and Anq for its rupee-backed stablecoin, set to launch in early 2026 appeared first on CoinJournal.

Bitcoin Magazine

Tether Is Buying Bitcoin’s Revolution, How Devastating Will The Consequences Be?

At a Glance

• The GENIUS Act in the U.S. gave private stablecoin issuers a legal framework while stalling a government issued CBDC.
• Tether, issuer of USDT, earned record profits and became one of the largest private holders of U.S. Treasuries.
• The company’s cooperation with regulators and law-enforcement shows how stablecoins function as compliance rails, not as alternatives to them.
• Many Bitcoin advocates now align with Tether’s ecosystem, unintentionally helping extend the fiat system they claim to resist.

Bitcoin’s Quiet Compromise

When the GENIUS Act became law on 18 July 2025, the crypto industry celebrated it as the end of regulatory uncertainty. The Act requires licensed stablecoin issuers to hold liquid reserves such as cash and U.S. Treasuries, publish monthly disclosures, and submit to federal or state supervision. At the same time, Congress shelved a federal central bank digital currency.

Supporters saw this as a victory for innovation, but critics called it a quiet federalization of private money. The United States no longer needs to issue its own digital dollar. It has simply delegated that function to private issuers operating under oversight. For Bitcoiners, whose movement was built around sound, decentralised money, that shift should have triggered alarm bells.

Tether’s Private Empire

The biggest beneficiary of this new framework is Tether Limited, whose USDT token dominates global stablecoin supply. In its Q2 2025 attestation, Tether Limited reported a net profit of approximately $4.9 billion and total exposure to U.S. Treasuries exceeding $127 billion. Treasury bills and reverse repo holdings. Its balance sheet showed nearly $120 billion in Treasuries, making Tether one of the world’s largest private holders of U.S. government debt.

Custody of those assets rests with Cantor Fitzgerald, the Wall Street firm led by Howard Lutnick. Lutnick has publicly defended the soundness of Tether’s reserves, confirming Cantor’s role as custodian while emphasizing that it holds no equity stake in the company. 

The connection is now more delicate: Lutnick was later nominated for a senior White House economic position overseeing elements of trade and financial regulation. That appointment places a federal policymaker in proximity to one of the largest private holders of U.S. government debt and the key custodian for a company whose dollar backed token depends on the U.S. Treasuries for profit. The optics are uncomfortable. What began as a business relationship now blurs into a potential conflict of interest, embedding Tether in Wall Street’s plumbing and within the political apparatus that governs it.

In effect, Tether has become a private central bank: issuing dollar liabilities, earning seigniorage, and distributing liquidity through the crypto economy, all while piggy backing on U.S. sovereign debt. Its profit per employee rivals the most profitable institutions in finance.

Surveillance by Proxy

Stablecoins promise fast, borderless payments; however, their architecture depends on compliance. Since December 2023, Tether has maintained a proactive wallet-freezing policy for addresses sanctioned by the U.S. Office of Foreign Assets Control. The company says it has frozen billions in tokens linked to illicit activity and now works directly with the U.S. Secret Service and FBI. 

This is not inherently sinister, it’s what regulators demand, but it means enforcement now operates within the money itself. The control lever no longer sits solely with banks, it resides in the smart contract of the token issuer.

As Tether expands USDT onto Bitcoin adjacent networks such as Liquid and the RGB protocol, the same compliance logic will travel with it. The more Bitcoin infrastructure hosts these tokens, the more identity, KYC, and whitelisting mechanisms will appear around Bitcoin wallets and payment channels. The network that once prided itself on neutrality risks becoming a conduit for surveillance grade rails.

The Political Economy of the Digital Dollar

The GENIUS Act’s passage also realigned the politics of digital currency. Its sponsors framed it as an anti-CBDC measure, arguing that private stablecoins preserve choice and limit government power. However, the result is nearly identical to what a central bank digital currency would achieve: programmable, trackable dollars, only administered by corporations instead of the Fed. Some analysts have called this the birth of a “CBDC by proxy.”

The policy also meshes neatly with fiscal priorities. Every USDT minted represents demand for short dated Treasuries, effectively financing the same government that stablecoin advocates claim to bypass. Tether’s profits flow from the interest rate paid on those securities, an invisible subsidy from public debt to private issuers.

By situating stablecoins within the traditional bond market, the U.S. has created a dollar based feedback loop: bitcoin demand supports Treasury issuance, and Treasury yields support bitcoin profitability. In that loop, decentralization is incidental.

Co-opting the Bitcoin Narrative

Within the Bitcoin community, opposition to altcoins remains strong, but sponsorships, event partnerships, and integrations show how quickly principle bends toward funding. Bitcoin conferences increasingly feature Tether executives and supporters on stage, often framed as “bridges” to adoption. 

A familiar refrain has emerged among those bitcoiners who take money from Tether,  ‘if stablecoins are inevitable, it’s better they be run by Bitcoiners’. Another popular defence is that Tether provides a lifeline for people in countries locked out of the dollar system or suffering from hyperinflation and collapsing economies. This is an emotionally persuasive narrative.  These convenient mantras turn compromise into virtue, allowing Bitcoiners to take sponsorships and funding from the same system they once swore to oppose.

That logic may offer comfort to some, but erodes clarity. USDT on Bitcoin does not make Bitcoin more sovereign; it makes the dollar more omnipresent. When Bitcoin developers or advocates align with Tether for sponsorship or exposure, they lend moral legitimacy to a system that thrives on fiat’s dominance. The irony is that Bitcoin’s fiercest defenders are now helping entrench the very structure it was built to escape.

Follow the Money

Tether’s scale gives it power in markets and in messaging. With billions in annual profits and deep links to Wall Street custodians, it can sponsor conferences, fund research, and influence narratives across the digital asset world. Its executives appear frequently at policy forums to present stablecoins as allies of innovation and freedom. Each appearance helps normalise the idea that regulated, dollar denominated tokens represent progress for Bitcoin.

But the money tells a different story. Each stablecoin transaction that settles in USDT extends the dollar system’s reach and perpetuates the weaponization of money. Every layer of compliance embeds surveillance deeper into the blockchain economy. And every Bitcoiner who accepts that trade off helps build a network where decentralization endures mostly as branding.

Bitcoin doesn’t need a conspiracy against it; it only needs its followers to forget what made it different. The GENIUS Act, the rise of Tether, and the regulatory preference for private rails all point to a future where digital cash exists, but never without permission. The Trojan horse is not Tether, it’s the belief that working with it preserves freedom.

In the end, too many Bitcoiners remain exactly where Tether wants them, still tethered to the system they are trying to escape.

This is a guest post by Plain Memo. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

This post Tether Is Buying Bitcoin’s Revolution, How Devastating Will The Consequences Be? first appeared on Bitcoin Magazine and is written by Plain Memo.