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This Week’s Headlines:
- Silent but steady: global stablecoin market nears $260 billion
- Shenzhen issues red flag: stablecoin-linked illegal financing surges
- Ex‑ECB official warns: EU must back euro‑denominated stablecoins
- J.P. Morgan cuts growth forecasts – skeptical on trillion‑dollar stablecoin boom
Silent Climb Toward $260 Billion Stablecoin Market
The total stablecoin supply has quietly risen to around $258 billion, nearing a pivotal $260 billion milestone. Over the past week, growth around 0.84%, driven largely by Tether’s USDT, reflects continued demand for dollar‑pegged liquidity even amidst broader market volatility. The market’s subtle momentum underscores stablecoins’ increasing role in trading, remittances, and payment rails.
This “silent climb” signals maturation, with stablecoins emerging as core infrastructure in crypto and fintech ecosystems. However, long-term expansion may hinge on regulatory clarity, institutional adoption, and the outcome of U.S. frameworks like the GENIUS Act.
Shenzhen Warns of 50% Spike in Stablecoin‑Related Illegal Activity
Shenzhen’s financial oversight office recently flagged a sharp 50% increase in stablecoin-linked illicit financing such as pyramid schemes, fraud, and money laundering. Officials caution that many new and unregistered tokens exploit the term ‘stablecoin’ as a smokescreen for illegal fundraising, jeopardizing unsuspecting investors.
The warning comes amid regulatory crackdowns in mainland China. Shenzhen urges strict vigilance and clearer rules to curb bad actors, contrasting with neighboring Hong Kong’s push for regulated digital asset innovation. The move highlights tensions between domestic innovation and financial security.
Ex‑ECB Official: Back Euro Stablecoins or Risk Financial Marginalization
Former ECB board member Lorenzo Bini Smaghi has urged the EU to actively support euro‑pegged stablecoins, warning that failure to act risks ceding payment sovereignty to U.S. dollar tokens. With $255 billion in global stablecoin assets—over 95% dollar‑denominated—he argues Europe is falling behind unless Eurostablecoin momentum accelerates.
Bini Smaghi recommends coordinated standards and regulatory support via MiCA, aiming to unify capital markets and modernize payments. Without eurostablecoins, he fears deposit flight from eurozone banks, weakening the ECB's monetary influence.
J.P. Morgan Trims Its Billion‑Dollar Stablecoin Forecast
J.P. Morgan has cut its long-term outlook for the stablecoin market, now forecasting around $500 billion by 2028—half of previous optimistic projections. The bank cited limited everyday payment use (around 6%) and regulatory fragmentation as key growth constraints.
While acknowledging declines in traction, J.P. Morgan still sees firm demand in crypto trading, DeFi, and cross-border settlements. The revision reflects unrealistic hype around trillion-dollar valuations, instead pointing to more measured, infrastructure-driven growth.
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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://news.bitcoin.com/silent-climb-stablecoin-market-inches-toward-260b-breakout/
