3 posts tagged with "global-economy"

In a remarkable demonstration of international regulatory coordination, seven major economies—the United States, European Union, United Kingdom, Singapore, Hong Kong, UAE, and Japan—have converged on strikingly similar frameworks for stablecoin regulation throughout 2025 and into 2026. For the first time in crypto history, stablecoins are being treated not as speculative crypto assets, but as regulated payment instruments subject to the same prudential standards as traditional money transmission services.

The transformation is already reshaping a market worth over $260 billion, where USDC and USDT control more than 80% of total stablecoin value. But the real story isn't just about compliance—it's about how regulatory clarity is accelerating institutional adoption while forcing a fundamental reckoning between transparency leaders like Circle and opacity champions like Tether.

The Great Regulatory Convergence​

What makes 2026's stablecoin regulatory landscape remarkable isn't that governments finally acted—it's that they acted with stunning coordination across jurisdictions. Despite different political systems, economic priorities, and regulatory cultures, these seven economies have arrived at a core set of shared principles:

Mandatory licensing for all stablecoin issuers under financial supervision, with explicit authorization required before operating. The days of launching a stablecoin without regulatory approval are over in major markets.

Full reserve backing with 1:1 fiat reserves held in liquid, segregated assets. Issuers must prove they can redeem every token at par value on demand. The fractional reserve experiments and yield-bearing stablecoins backed by DeFi protocols face existential regulatory pressure.

Guaranteed redemption rights ensuring holders can convert stablecoins back to fiat within defined timeframes—typically five business days or less. This consumer protection measure transforms stablecoins from speculative tokens into genuine payment rails.

Monthly transparency reports demonstrating reserve composition, with third-party attestations or audits. The era of opaque reserve disclosures is ending, at least in regulated markets.

This convergence didn't happen by accident. As stablecoin volumes surged past $1.1 trillion in monthly transactions, regulators recognized that fragmented national approaches would create arbitrage opportunities and regulatory gaps. The result is an informal global standard emerging simultaneously across continents.

The US Framework: GENIUS Act and Dual-Track Oversight​

The United States established its comprehensive federal framework with the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), signed into law on July 18, 2025. The legislation represents the first time Congress has created explicit regulatory pathways for crypto-native financial products.

The GENIUS Act introduces a dual-track framework that permits smaller issuers—those with less than $10 billion in outstanding stablecoins—to opt into state-level regulatory regimes, provided those regimes are certified as "substantially similar" to federal standards. Larger issuers with more than $10 billion in circulation face primary federal supervision by the OCC, Federal Reserve Board, FDIC, or National Credit Union Administration.

Regulations must be promulgated by July 18, 2026, with the full framework taking effect on the earlier of January 18, 2027, or 120 days after regulators issue final rulemaking. This creates a compressed timeline for both regulators and issuers to prepare for the new regime.

The framework directs regulators to establish processes for licensing, examination, and supervision of stablecoin issuers, including capital requirements, liquidity standards, risk management frameworks, reserve asset rules, custody standards, and BSA/AML compliance. Federal qualified payment stablecoin issuers include non-bank entities approved by the OCC specifically to issue payment stablecoins—a new category of financial institution created by the legislation.

The GENIUS Act's passage has already influenced market dynamics. JPMorgan analysis shows Circle's USDC outpaced Tether's USDT in on-chain growth for the second consecutive year, driven by increased institutional demand for stablecoins that meet emerging regulatory requirements. USDC's market capitalization increased 73% to $75.12 billion while USDT added 36% to $186.6 billion—demonstrating that regulatory compliance is becoming a competitive advantage rather than a burden.

Europe's MiCA: Full Enforcement by July 2026​

Europe's Markets in Crypto-Assets (MiCA) regulation established the world's first comprehensive crypto regulatory framework, with stablecoin rules already in force and full enforcement approaching the July 1, 2026 deadline.

MiCA distinguishes between two types of stablecoins: Asset-Referenced Tokens (ARTs) backed by baskets of assets, and Electronic Money Tokens (EMTs) pegged to single fiat currencies. Fiat-backed stablecoins must maintain reserves with a 1:1 ratio in liquid assets, with strict segregation from issuer funds and regular third-party audits.

Issuers must provide frequent transparency reports demonstrating full backing, while custodians undergo regular audits to verify proper segregation and security of reserves. The framework establishes strict oversight mechanisms to ensure stablecoin stability and consumer protection across all 27 EU member states.

A critical complication emerges from March 2026: Electronic Money Token custody and transfer services may require both MiCA authorization and separate payment services licenses under the Payment Services Directive 2 (PSD2). This dual compliance requirement could double compliance costs for stablecoin issuers offering payment functionality, creating significant operational complexity.

As the transitional phase ends, MiCA is moving from staggered implementation to full EU-wide enforcement. Entities providing crypto-asset services under national laws before December 30, 2024 can continue until July 1, 2026 or until they receive a MiCA authorization decision. After that deadline, only MiCA-authorized entities can operate stablecoin businesses in the European Union.

Asia-Pacific: Singapore, Hong Kong, Japan Lead Regional Standards​

Asia-Pacific jurisdictions have moved decisively to establish stablecoin frameworks, with Singapore, Hong Kong, and Japan setting regional benchmarks that influence neighboring markets.

Singapore: World-Class Prudential Standards​

Singapore's Monetary Authority (MAS) framework applies to single-currency stablecoins pegged to the Singapore dollar or G10 currencies. Issuers meeting all MAS requirements can label their tokens as "MAS-regulated stablecoins"—a designation signaling prudential standards equivalent to traditional financial instruments.

The MAS framework is among the world's strictest. Stablecoin reserves must be backed 100% by cash, cash equivalents, or short-term sovereign debt in the same currency, segregated from issuer assets, held with MAS-approved custodians, and attested monthly by independent auditors. Issuers need minimum capital of 1 million SGD or 50% of annual operating expenses, plus additional liquid assets for orderly wind-down scenarios.

Redemption requirements mandate that stablecoins must be convertible to fiat at par value within five business days—a consumer protection standard that ensures stablecoins function as genuine payment instruments rather than speculative assets.

Hong Kong: Controlled Market Entry​

Hong Kong's Stablecoin Ordinance, passed in May 2025, established a mandatory licensing regime overseen by the Hong Kong Monetary Authority (HKMA). The HKMA indicated that "only a handful of licenses will be granted initially" and expects the first licenses to be issued in early 2026.

Any company that issues, markets, or distributes fiat-backed stablecoins to the public in Hong Kong must hold an HKMA license. This includes foreign issuers offering Hong Kong dollar-pegged tokens. The framework provides a regulatory sandbox for firms to test stablecoin operations under supervision before seeking full authorization.

Hong Kong's approach reflects its role as a gateway to mainland China while maintaining regulatory independence under the "one country, two systems" framework. By limiting initial licenses, the HKMA is signaling quality over quantity—preferring a small number of well-capitalized, compliant issuers to a proliferation of marginally regulated tokens.

Japan: Banking-Exclusive Issuance​

Japan was one of the first countries to bring stablecoins under formal legal regulation. In June 2022, Japan's parliament amended the Payment Services Act to define and regulate "digital money-type stablecoins," with the law taking force in mid-2023.

Japan's framework is the most restrictive among major economies: only banks, registered fund transfer service providers, and trust companies may issue yen-backed stablecoins. This banking-exclusive approach reflects Japan's conservative financial regulatory culture and ensures that only entities with proven capital adequacy and operational resilience can enter the stablecoin market.

The framework requires strict reserve, custody, and redemption obligations, effectively treating stablecoins as electronic money under the same standards as prepaid cards and mobile payment systems.

UAE: Federal Payment Token Framework​

The United Arab Emirates established federal oversight through the Central Bank of the UAE (CBUAE), which regulates fiat-backed stablecoins under its Payment Token Services Regulation, effective from August 2024.

The CBUAE framework defines "payment tokens" as crypto assets fully backed by one or more fiat currencies and used for settlement or transfers. Any company that issues, redeems, or facilitates payment tokens in the UAE mainland must hold a Central Bank license.

The UAE's approach reflects its broader ambition to become a global crypto hub while maintaining financial stability. By bringing stablecoins under Central Bank supervision, the UAE signals to international partners that its crypto ecosystem operates under equivalent standards to traditional finance—critical for cross-border payment flows and institutional adoption.

The Circle vs Tether Divergence​

The regulatory convergence is forcing a fundamental reckoning between the two dominant stablecoin issuers: Circle's USDC and Tether's USDT.

Circle has embraced regulatory compliance as a strategic advantage. USDC provides monthly attestations of reserve assets, holds all reserves with regulated financial institutions, and has positioned itself as the "institutional choice" for compliant stablecoin exposure. This strategy is paying off: USDC has outpaced USDT in growth for two consecutive years, with market capitalization increasing 73% versus USDT's 36% growth.

Tether has taken a different path. While the company states it follows "world-class standardized compliance measures," there remains limited transparency into what those measures entail. Tether's reserve disclosures have improved from early opacity, but still fall short of the monthly attestations and detailed asset breakdowns provided by Circle.

This transparency gap creates regulatory risk. As jurisdictions implement full reserve requirements and monthly reporting obligations, Tether faces pressure to either substantially increase disclosure or risk losing access to major markets. The company has responded by launching USA₮, a U.S.-regulated stablecoin designed to compete with Circle on American soil while maintaining its global USDT operations under less stringent oversight.

The divergence highlights a broader question: will regulatory compliance become the dominant competitive factor in stablecoins, or will network effects and liquidity advantages allow less transparent issuers to maintain market share? Current trends suggest compliance is winning—institutional adoption is flowing disproportionately toward USDC, while USDT remains dominant in emerging markets with less developed regulatory frameworks.

Infrastructure Implications: Building for Regulated Rails​

The regulatory convergence is creating new infrastructure requirements that go far beyond simple compliance checkboxes. Stablecoin issuers must now build systems comparable to traditional financial institutions:

Treasury management infrastructure capable of maintaining 1:1 reserves in segregated accounts, with real-time monitoring of redemption obligations and liquidity requirements. This requires sophisticated cash management systems and relationships with multiple regulated custodians.

Audit and reporting systems that can generate monthly transparency reports, third-party attestations, and regulatory filings across multiple jurisdictions. The operational complexity of multi-jurisdictional compliance is substantial, favoring larger, well-capitalized issuers.

Redemption infrastructure that can process fiat withdrawals within regulatory timeframes—five business days or less in most jurisdictions. This requires banking relationships, payment rails, and customer service capabilities far beyond typical crypto operations.

BSA/AML compliance programs equivalent to money transmission businesses, including transaction monitoring, sanctions screening, and suspicious activity reporting. The compliance burden is driving consolidation toward issuers with established AML infrastructure.

These requirements create significant barriers to entry for new stablecoin issuers. The days of launching a stablecoin with minimal capital and opaque reserves are ending in major markets. The future belongs to issuers that can operate at the intersection of crypto innovation and traditional financial regulation.

For blockchain infrastructure providers, regulated stablecoins create new opportunities. As stablecoins transition from speculative crypto assets to payment instruments, demand grows for reliable, compliant blockchain APIs that can support regulatory reporting, transaction monitoring, and cross-chain settlement. Institutions need infrastructure partners that understand both crypto-native operations and traditional financial compliance.

BlockEden.xyz provides enterprise-grade blockchain APIs designed for institutional stablecoin infrastructure. Our compliant RPC nodes support the transparency and reliability required for regulated payment rails. Explore our stablecoin infrastructure solutions to build on foundations designed for the regulated future.

What Comes Next: The 2026 Compliance Deadline​

As we move through 2026, three critical deadlines are reshaping the stablecoin landscape:

July 1, 2026: MiCA full enforcement in the European Union. All stablecoin issuers operating in Europe must hold MiCA authorization or cease operations. This deadline will test whether global issuers like Tether have completed compliance preparations or will exit European markets.

July 18, 2026: GENIUS Act rulemaking deadline in the United States. Federal regulators must issue final regulations establishing the licensing framework, capital requirements, and supervision standards for U.S. stablecoin issuers. The content of these rules will determine whether the U.S. becomes a hospitable jurisdiction for stablecoin innovation or drives issuers offshore.

Early 2026: Hong Kong first license grants. The HKMA expects to issue its first stablecoin licenses, setting precedents for what "acceptable" stablecoin operations look like in Asia's leading financial center.

These deadlines create urgency for stablecoin issuers to finalize compliance strategies. The "wait and see" approach is no longer viable—regulatory enforcement is arriving, and unprepared issuers risk losing access to the world's largest markets.

Beyond compliance deadlines, the real question is what regulatory convergence means for stablecoin innovation. Will common standards create a global market for compliant stablecoins, or will jurisdictional differences fragment the market into regional silos? Will transparency and full reserves become competitive advantages, or will network effects allow less compliant stablecoins to maintain dominance in unregulated markets?

The answers will determine whether stablecoins fulfill their promise as global, permissionless payment rails—or become just another regulated financial product, distinguished from traditional e-money only by the underlying blockchain infrastructure.

The Broader Implications: Stablecoins as Policy Tools​

The regulatory convergence reveals something deeper than technical compliance requirements: governments are recognizing stablecoins as systemically important payment infrastructure.

When seven major economies independently arrive at similar frameworks within months of each other, it signals coordination at international forums like the Financial Stability Board and Bank for International Settlements. Stablecoins are no longer a crypto curiosity—they're payment instruments handling over $1 trillion in monthly volume, rivaling some national payment systems.

This recognition brings both opportunities and constraints. On one hand, regulatory clarity legitimizes stablecoins for institutional adoption, opening pathways for banks, payment processors, and fintech companies to integrate blockchain-based settlement. On the other hand, treating stablecoins as payment instruments subjects them to the same policy controls as traditional money transmission—including sanctions enforcement, capital controls, and monetary policy considerations.

The next frontier is central bank digital currencies (CBDCs). As private stablecoins gain regulatory acceptance, central banks are watching closely to understand whether CBDCs need to compete with or complement regulated stablecoins. The relationship between private stablecoins and public digital currencies will define the next chapter of digital money.

For now, the regulatory convergence of 2026 marks a watershed: the year stablecoins graduated from crypto assets to payment instruments, with all the opportunities and constraints that status entails.

In 2024, cryptocurrency crossed a threshold that would have seemed impossible just a few years ago: 560 million people now own digital assets. That's more than the population of the European Union. More than double the user count from 2022. And we're just getting started.

What's driving this explosive growth isn't speculation or hype cycles—it's necessity. From Argentina's inflation-ravaged economy to Indonesia's meme coin traders, from BlackRock's Bitcoin ETF to Visa's stablecoin settlements, crypto is quietly becoming the plumbing of global finance. The question isn't whether we'll reach one billion users. It's when—and what that world will look like.

The Numbers Behind the Explosion​

The 32% year-over-year growth from 425 million to 560 million users tells only part of the story. Dig deeper, and the transformation becomes more striking:

Market cap nearly doubled. The global crypto market surged from $1.61 trillion to $3.17 trillion—a 96.89% increase that outpaced most traditional asset classes.

Regional growth was uneven—and revealing. South America led with a staggering 116.5% increase in ownership, more than doubling in a single year. Asia-Pacific emerged as the fastest-growing region for on-chain activity, with 69% year-over-year growth in value received.

Emerging markets dominated adoption. India retained the top spot in Chainalysis's Global Crypto Adoption Index, followed by Nigeria and Indonesia. The pattern is clear: countries with unstable banking systems, high inflation, or limited financial access are adopting crypto not as a speculative bet, but as a financial lifeline.

Demographics shifted. 34% of crypto owners are aged 25-34, but the gender gap is narrowing—women now represent 39% of owners, up from earlier years. In the U.S., crypto ownership hit 40%, with over 52% of American adults having purchased cryptocurrency at some point.

Why Emerging Markets Lead—And What the West Can Learn​

The Chainalysis adoption index reveals an uncomfortable truth for developed economies: the countries that "get" crypto aren't the ones with the most sophisticated financial systems. They're the ones where traditional finance has failed.

Nigeria's financial imperative. With 84% of the population owning a crypto wallet, Nigeria leads global wallet penetration. The drivers are practical: currency instability, capital controls, and expensive remittance corridors make crypto a necessity, not a novelty. When your currency loses double-digit percentages annually, a stablecoin pegged to USD isn't speculative—it's survival.

Indonesia's meteoric rise. Jumping four spots to third place globally, Indonesia saw nearly 200% year-over-year growth, receiving approximately $157.1 billion in cryptocurrency value. Unlike India and Nigeria, Indonesia's growth isn't primarily driven by regulatory progress—it's fueled by trading opportunities, particularly in meme coins and DeFi.

Latin America's stablecoin revolution. Argentina's 200%+ inflation in 2023 transformed stablecoins from a niche product into the backbone of economic life. Over 60% of Argentine crypto activity involves stablecoins. Brazil recorded $91 billion in on-chain transaction volume, with stablecoins comprising nearly 70% of activity. The region handled $415 billion in crypto flows—9.1% of global activity—with remittances exceeding $142 billion channeled through faster, cheaper crypto rails.

The pattern is consistent: where traditional finance creates friction, crypto finds adoption. Where banks fail, blockchains fill the gap. Where inflation erodes savings, stablecoins preserve value.

The Bitcoin ETF Effect: How Institutional Money Changed Everything​

January 2024's Bitcoin ETF approval wasn't just regulatory progress—it was a category shift. The numbers tell the story:

Investment flows accelerated 400%. Institutional investment surged from a $15 billion pre-approval baseline to $75 billion within Q1 2024.

BlackRock's IBIT attracted $50+ billion in AUM. By December 2025, U.S. spot Bitcoin ETFs had reached $122 billion in AUM, up from $27 billion at the start of 2024.

Corporate treasuries expanded dramatically. Total corporate cryptocurrency holdings surged past $6.7 billion, with MicroStrategy acquiring 257,000 BTC in 2024 alone. 76 new public companies added crypto to their treasuries in 2025.

Hedge fund allocation hit new highs. 55% of traditional hedge funds now hold digital assets, up from 47% in 2024. 68% of institutional investors are either investing in or planning to invest in Bitcoin ETPs.

The institutional effect extended beyond direct investment. ETFs legitimized crypto as an asset class, providing familiar wrappers for traditional investors while creating new on-ramps that bypassed the complexity of direct cryptocurrency ownership. Between June 2024 and July 2025, retail users still purchased $2.7 trillion worth of bitcoin using USD—the institutional presence hadn't crowded out retail activity but amplified it.

The UX Barrier: Why Growth Might Stall​

Despite these numbers, a significant obstacle stands between 560 million users and one billion: user experience. And it's not improving fast enough.

New user acquisition has stagnated in developed markets. Approximately 28% of American adults hold cryptocurrency, but the number stopped growing. Despite improved regulatory clarity and institutional participation, the fundamental barriers remain unchanged.

Technical complexity deters mainstream consumers. Managing seed phrases, understanding gas fees, navigating multiple blockchain networks—these requirements are fundamentally opposed to how modern financial products work. Transaction execution remains treacherous: network fees fluctuate unpredictably, failed transactions incur costs, and a single incorrect address can mean permanent asset loss.

The interface problem is real. According to WBR Research, clunky interfaces and complex navigation actively deter traditional finance practitioners and institutional investors from engaging with DeFi or blockchain-based services. Wallets remain fragmented, unintuitive, and risky.

Consumer concerns haven't changed. People who don't own cryptocurrency cite the same concerns year after year: unstable value, lack of government protection, and cyber-attack risks. Despite technological progress, crypto still feels intimidating to new users.

The industry recognizes the problem. Account abstraction technologies are being developed to eliminate seed phrase management through social recovery and multi-signature implementations. Cross-chain protocols are working to unify different blockchain networks into single interfaces. But these solutions remain largely theoretical for mainstream users.

The harsh reality: if crypto apps don't become as easy to use as traditional banking apps, adoption will plateau. Convenience, not ideology, drives mainstream behavior.

Stablecoins: Crypto's Trojan Horse Into Mainstream Finance​

While Bitcoin grabs headlines, stablecoins are quietly achieving what crypto bulls have always promised: actual utility. 2025 marked the year stablecoins became economically relevant beyond cryptocurrency speculation.

Supply topped $300 billion. Usage shifted from holding to spending, transforming digital assets into payment infrastructure.

Major payment networks integrated stablecoins.

• Visa now supports 130+ stablecoin-linked card programs in 40+ countries. The company launched stablecoin settlement in the U.S. via Cross River Bank and Lead Bank, with broader availability planned through 2026.
• Mastercard enabled multiple stablecoins (USDC, PYUSD, USDG, FIUSD) across its network and partnered with MoonPay to let users link stablecoin-funded wallets to Mastercard.
• PayPal is expanding PYUSD while scaling its digital wallet—opening stablecoins to 430+ million consumers and 36 million merchants.

The regulatory framework materialized. The GENIUS Act (July 2025) established the first federal stablecoin framework in the U.S., requiring 100% backing in liquid assets and monthly reserve disclosures. Similar laws emerged worldwide.

Cross-border payments are being transformed. Stablecoin transactions bypass traditional banking intermediaries, reducing processing costs for merchants. Settlements occur within seconds instead of 1-3 business days. For the $142+ billion Latin American remittance corridor alone, stablecoins can reduce costs by up to 50%.

Citi's research arm projects stablecoin issuance reaching $1.9 trillion by 2030 in their base case, and $4 trillion in an upside scenario. By 2026, stablecoins may become the default settlement layer for cross-border transactions across multiple industries.

The Road to One Billion: What Must Happen​

Projections suggest the cryptocurrency user base will reach 962-992 million by 2026-2028. Crossing the one billion threshold isn't inevitable—it requires specific developments:

User experience must reach Web2 parity. Account abstraction, invisible gas fees, and seamless cross-chain operations need to move from experimental to standard. When users interact with crypto without consciously "using crypto," mainstream adoption becomes achievable.

Stablecoin infrastructure must mature. The GENIUS Act was a start, but global regulatory harmonization is needed. Merchant adoption will accelerate as processing costs become definitively lower than card networks.

Institutional-retail bridges must expand. Bitcoin ETFs succeeded by providing familiar wrappers for unfamiliar assets. Similar products for other cryptocurrencies and DeFi strategies would extend adoption to investors who want exposure without technical complexity.

Emerging market growth must continue. India, Nigeria, Indonesia, Brazil, and Argentina are where the next 400 million users will come from. Infrastructure investments in these regions—not just user acquisition but developer tools, local exchanges, and regulatory clarity—will determine whether projections hold.

The AI-crypto convergence must deliver. As AI agents increasingly require autonomous payment capabilities and blockchain provides the rails, the intersection could drive adoption among users who never intended to "use crypto" at all.

What 560 Million Users Means for the Industry​

The 560 million milestone isn't just a number—it's a phase transition. Crypto is no longer early-adopter territory. It's not niche. With more users than most social networks and more transaction volume than many national economies, cryptocurrency has become infrastructure.

But infrastructure carries different responsibilities than experimental technology. Users expect reliability, simplicity, and protection. The industry's willingness to deliver these—not just through technology but through design, regulation, and accountability—will determine whether the next doubling happens in three years or a decade.

The users are here. The question is whether the industry is ready for them.

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perspectives from Paolo Ardoino, Charles Cascarilla and Rob Hadick

Background: Stablecoins are maturing into a payments rail​

• Rapid growth: Stablecoins began as collateral for trading on crypto exchanges, but by mid‑2025 they had become an important part of global payments. The market cap of dollar‑denominated stablecoins exceeded US$210 billion by the end of 2024 and transaction volume reached US$26.1 trillion, growing 57 % year‑on‑year. McKinsey estimated that stablecoins settle roughly US$30 billion of transactions each day and their yearly transaction volume reached US$27 trillion – still less than 1 % of all money flows but rising quickly.
• Real payments, not just trading: The Boston Consulting Group estimates that 5–10 % (≈US$1.3 trillion) of stablecoin volumes at the end of 2024 were genuine payments such as cross‑border remittances and corporate treasury operations. Cross‑border remittances account for roughly 10 % of the transaction count. By early 2025 stablecoins were used for ≈3 % of the US$200 trillion cross‑border payments market, with capital‑markets use still less than 1 %.
• Drivers of adoption: Emerging markets: In countries where local currencies depreciate by 50–60 % per year, stablecoins provide a digital dollar for savers and businesses. Adoption is particularly strong in Turkey, Argentina, Vietnam, Nigeria and parts of Africa. Technology and infrastructure: New orchestration layers and payment service providers (e.g., Bridge, Conduit, MoneyGram/USDC via MoneyGram) link blockchains with bank rails, reducing friction and improving compliance. Regulation: The GENIUS Act (2025) established a U.S. federal framework for payment stablecoins. The law sets strict reserve, transparency and AML requirements and creates a Stablecoin Certification Review Committee to decide whether state regimes are "substantially similar". It allows state‑qualified issuers with less than US$10 billion in circulation to operate under state oversight when standards meet federal levels. This clarity encouraged legacy institutions such as Visa to test stablecoin‑funded international transfers, with Visa's Mark Nelsen noting that the GENIUS Act "changed everything" by legitimising stablecoins

Paolo Ardoino (CEO, Tether)​

Vision: a “digital dollar for the unbanked”​

• Scale and usage: Ardoino says USDT serves 500 million users across emerging markets; about 35 % use it as a savings account, and 60–70 % of transactions involve only stablecoins (not crypto trading). He emphasises that USDT is now “the most used digital dollar in the world” and acts as “the dollar for the last mile, for the unbanked”. Tether estimates that 60 % of its market‑cap growth comes from grassroots use in Asia, Africa and Latin America.
• Emerging‑market focus: Ardoino notes that in the U.S. the payment system already works well, so stablecoins offer only incremental benefits. In emerging economies, however, stablecoins improve payment efficiency by 30–40 % and protect savings from high inflation. He describes USDT as a financial lifeline in Turkey, Argentina and Vietnam where local currencies are volatile.
• Compliance and regulation: Ardoino publicly supports the GENIUS Act. In a 2025 Bankless interview he said the Act sets “a strong framework for domestic and foreign stablecoins” and that Tether, as a foreign issuer, intends to comply. He highlighted Tether’s monitoring systems and cooperation with over 250 law‑enforcement agencies, emphasising that high compliance standards help the industry mature. Ardoino expects the U.S. framework to become a template for other countries and predicted that reciprocal recognition would allow Tether’s offshore USDT to circulate widely.
• Reserves and profitability: Ardoino underscores that Tether’s tokens are fully backed by cash and equivalents. He said the company holds about US$125 billion in U.S. Treasuries and has US$176 billion of total equity, making Tether one of the largest holders of U.S. government debt. In 2024 Tether generated US$13.7 billion profit and he expects this to grow. He positions Tether as a decentralised buyer of U.S. debt, diversifying global holders.
• Infrastructure initiatives: Ardoino announced an ambitious African energy project: Tether plans to build 100 000–150 000 solar‑powered micro‑stations, each serving villages with rechargeable batteries. The subscription model (~US$3 per month) allows villagers to swap batteries and use USDT for payments, supporting a decentralised economy. Tether also invests in peer‑to‑peer AI, telecoms and social media platforms to expand its ecosystem.
• Perspective on the payment shift: Ardoino views stablecoins as transformational for financial inclusion, enabling billions without bank accounts to access a digital dollar. He argues that stablecoins complement rather than replace banks; they provide an on‑ramp into the U.S. financial system for people in high‑inflation economies. He also claims the growth of USDT diversifies demand for U.S. Treasuries, benefiting the U.S. government.

Charles Cascarilla (Co‑Founder & CEO, Paxos)​

Vision: modernising the U.S. dollar and preserving its leadership​

• National imperative: In testimony before the U.S. House Financial Services Committee (March 2025), Cascarilla argued that “stablecoins are a national imperative” for the United States. He warned that failure to modernise could erode dollar dominance as other countries deploy digital currencies. He compared the shift to moving from physical mail to email; programmable money will enable instantaneous, near‑zero‑cost transfers accessible via smartphones.
• Regulatory blueprint: Cascarilla praised the GENIUS Act as a good baseline but urged Congress to add cross‑jurisdictional reciprocity. He recommended that the Treasury set deadlines to recognise foreign regulatory regimes so that U.S.‑issued stablecoins (and Singapore‑issued USDG) can be used abroad. Without reciprocity, he warned that U.S. firms might be locked out of global markets. He also advocated an equivalence regime where issuers choose either state or federal oversight, provided state standards meet or exceed federal rules.
• Private sector vs. CBDCs: Cascarilla believes the private sector should lead innovation in digital dollars, arguing that a central bank digital currency (CBDC) would compete with regulated stablecoins and stifle innovation. During congressional testimony he said there is no immediate need for a U.S. CBDC, because stablecoins already deliver programmable digital money. He emphasised that stablecoin issuers must hold 1:1 cash reserves, offer daily attestations, restrict asset rehypothecation, and comply with AML/KYC/BSA standards.
• Cross‑border focus: Cascarilla stressed that the U.S. must set global standards to enable interoperable cross‑border payments. He noted that high inflation in 2023–24 pushed stablecoins into mainstream remittances and the U.S. government’s attitude shifted from resistance to acceptance. He told lawmakers that only New York currently issues regulated stablecoins but a federal floor would raise standards across states.
• Business model and partnerships: Paxos positions itself as a regulated infrastructure provider. It issues the white‑label stablecoins used by PayPal (PYUSD) and Mercado Libre and provides tokenisation services for Mastercard, Robinhood and others. Cascarilla notes that eight years ago people asked how stablecoins could make money; today every institution that moves dollars across borders is exploring them.
• Perspective on the payment shift: For Cascarilla, stablecoins are the next evolution of money movement. They will not replace traditional banks but will provide a programmable layer on top of the existing banking system. He believes the U.S. must lead by creating robust regulations that encourage innovation while protecting consumers and ensuring the dollar remains the world’s reserve currency. Failure to do so could allow other jurisdictions to set the standards and threaten U.S. monetary primacy.

Rob Hadick (General Partner, Dragonfly)​

Vision: stablecoins as a disruptive payment infrastructure​

• Stablecoins as a disruptor: In a June 2025 article (translated by Foresight News), Hadick wrote that stablecoins are not meant to improve existing payment networks but to completely disrupt them. Stablecoins allow businesses to bypass traditional payment rails; when payment networks are built on stablecoins, all transactions are simply ledger updates rather than messages between banks. He warned that merely connecting legacy payment channels underestimates stablecoins’ potential; instead, the industry should reimagine payment channels from the ground up.
• Cross‑border remittances and market size: At the TOKEN2049 panel, Hadick disclosed that ≈10 % of remittances from the U.S. to India and Mexico already use stablecoins, illustrating the shift from traditional remittance rails. He estimated that the cross‑border payments market is about US$200 trillion, roughly eight times the entire crypto market. He emphasised that small and medium‑sized enterprises (SMEs) are underserved by banks and need frictionless capital flows. Dragonfly invests in “last‑mile” companies that handle compliance and consumer interaction rather than mere API aggregators.
• Stablecoin market segmentation: In a Blockworks interview, Hadick referenced data showing that business‑to‑business (B2B) stablecoin payments were annualising US$36 billion, surpassing person‑to‑person volumes of US$18 billion. He noted that USDT dominates 80–90 % of B2B payments, while USDC captures roughly 30 % of monthly volume. He was surprised that Circle (USDC) had not gained more share, though he observed signs of growth on the B2B side. Hadick interprets this data as evidence that stablecoins are shifting from retail speculation to institutional usage.
• Orchestration layers and compliance: Hadick emphasises the importance of orchestration layers—platforms that bridge public blockchains with traditional bank rails. He notes that the biggest value will accrue to settlement rails and issuers with deep liquidity and compliance capabilities. API aggregators and consumer apps face increasing competition from fintech players and commoditisation. Dragonfly invests in startups that offer direct bank partnerships, global coverage and high‑level compliance, rather than simple API wrappers.
• Perspective on the payment shift: Hadick views the shift to stablecoin payments as a “gold rush”. He believes we are only at the beginning: cross‑border volumes are growing 20–30 % month‑over‑month and new regulations in the U.S. and abroad have legitimised stablecoins. He argues that stablecoins will eventually replace legacy payment rails, enabling instant, low‑cost, programmable transfers for SMEs, contractors and global trade. He cautions that winners will be those who navigate regulation, build deep integrations with banks and abstract away blockchain complexity.

Conclusion: Alignments and differences​

• Shared belief in stablecoins’ potential: Ardoino, Cascarilla and Hadick agree that stablecoins will drive a trillion‑dollar shift in payments. All three highlight growing adoption in cross‑border remittances and B2B transactions and see emerging markets as early adopters.
• Different emphases: Ardoino focuses on financial inclusion and grassroots adoption, portraying USDT as a dollar substitute for the unbanked and emphasising Tether’s reserves and infrastructure projects. Cascarilla frames stablecoins as a national strategic imperative and stresses the need for robust regulation, reciprocity and private‑sector leadership to preserve the dollar’s dominance. Hadick takes the venture investor’s view, emphasising disruption of legacy payment rails, the growth of B2B transactions, and the importance of orchestration layers and last‑mile compliance.
• Regulation as catalyst: All three consider clear regulation—especially the GENIUS Act—essential for scaling stablecoins. Ardoino and Cascarilla advocate reciprocal recognition to allow offshore stablecoins to circulate internationally, while Hadick sees regulation enabling a wave of startups.
• Outlook: The stablecoin market is still in its early phases. With transaction volumes already in the trillions and use cases expanding beyond trading into remittances, treasury management and retail payments, the “book is just beginning to be written.” The perspectives of Ardoino, Cascarilla and Hadick illustrate how stablecoins could transform payments—from providing a digital dollar for billions of unbanked people to enabling businesses to bypass legacy rails—if regulators, issuers and innovators can build trust, scalability and interoperability.