August 18, 2025

Stablecoins in Review: August 18, 2025

This Week Summary on Stablecoin News:

  • Citigroup eyes stablecoin custody and payment services amid regulatory clarity
  • Ethereum positioned as chain of choice for surging stablecoin activity
  • Tether mints $1B USDT on Ethereum, reinforcing liquidity and dominance

Citigroup Explores Stablecoin Custody and Payment Services

Citigroup is weighing entry into the stablecoin ecosystem, exploring custody services for assets backing stablecoins plus stablecoin-based payment systems. This strategic move follows the passage of the GENIUS Act, which mandates high-quality reserve backing and legalization of stablecoin services. The bank is also considering proprietary stablecoin issuance and asset custody for crypto ETFs, signaling growing institutional integration.

This development represents a shift where traditional banking powerhouses are bringing credibility and infrastructure to digital assets. Professional capital allocators may soon rely on institutional-grade stablecoin management systems for custody and treasury operations, elevating risk standards across the industry.

Ethereum’s Upside: The Foundation for Stablecoin Expansion

Ethereum is proving itself pivotal as the stablecoin ecosystem scales. With over half of all stablecoins issued on the network, JPMorgan analysts identify Ethereum’s architecture as well-equipped for rapid growth in stablecoin volumes, supported by plans forecasting sector value to reach $500B by 2028. 

The blockchain’s enhanced usability, thanks to network upgrades and integration across tokenized products, coupled with institutional ETF inflows, positions Ethereum not just as a platform for innovation but as the backbone of stablecoin yield management and digital asset settlement infrastructure.

Tether Injects $1B Liquidity Into Ethereum

Tether has minted $1 billion USDT on the Ethereum network, reinforcing liquidity and affirming the chain’s foundational role in stablecoin delivery. The transaction, executed with minimal gas fees, demonstrates Ethereum’s efficiency in supporting large-scale stablecoin issuance. 

This action reflects continued demand for on-chain dollar equivalents and underscores the value of robust stablecoin management systems that balance liquidity, cost-efficiency, and operational reliability. Ethereum remains the prime conduit for stablecoin circulation, DeFi activity, and institutional engagement.

This Weekly Summary is prepared by brava.xyz.

About Brava:

Brava is a high-yield cash allocation platform that gives professional investors access to blockchain-based stablecoin credit markets. By routing capital into hundreds of secure, collateralised lending pools, Brava delivers automated, transparent, and risk-adjusted yield while users retain full control of their assets through non-custodial smart vaults. Built for capital allocators, Brava combines institutional-grade infrastructure with next-generation financial access.

Disclaimer: Brava does not provide financial advice or guarantee investment performance. Users should assess their own financial circumstances and risk tolerance before using the platform. Brava operates in compliance with applicable regulations and does not manage or hold client funds. Users remain in control of their assets at all times.

Citations:

https://www.reuters.com/business/finance/citigroup-considers-custody-payment-services-stablecoins-crypto-etfs-2025-08-14/ 

https://finance.yahoo.com/news/ethereum-suited-meteoric-stablecoin-growth-163117578.html 

https://www.ainvest.com/news/ethereum-news-today-tether-mints-2-billion-usdt-ethereum-tron-boosting-stablecoin-market-162-billion-2508/