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This Week Summary on Stablecoin News:
- Stripe’s co-founder says banks are going “all-in” on stablecoins as payments firms and legacy finance race to adopt dollar-backed assets.
- US stablecoin regulation is finally moving, with major legislation signaling a potential turning point for digital dollars and for Treasuries.
- Stablecoin adoption is booming, with $710B in monthly volumes and 35M unique users, but risks and compliance concerns remain front and center.
Banks Are Going All-In on Stablecoins, Says Stripe Co-Founder
Stripe co-founder John Collison believes stablecoins are fast becoming essential financial infrastructure, and banks agree. Speaking to Pymnts, Collison noted that financial institutions are “very interested” in deploying stablecoins to modernize payments, particularly in cross-border commerce. Stripe’s recent acquisition of Bridge, a stablecoin-focused payments startup, and its revaluation at $91.5B reinforce the strategic shift toward blockchain-based rails.
The buzz doesn’t stop at fintechs. JPMorgan, Wells Fargo, and Bank of America are reportedly collaborating on a dollar-backed stablecoin project, just as Stripe now supports USDC payments across multiple chains. As U.S. mints phase out penny production by 2026, dollar digitization seems less speculative and more inevitable. The convergence of big tech, fintech, and legacy finance signals a future where stablecoins could become default payment rails for the real economy.
US Stablecoin Laws Could Reshape the Financial System
Washington is closing in on long-awaited stablecoin legislation and it’s raising alarm bells across markets. The recently advanced GENIUS Act would enforce audits, ban yield products, and impose strict AML measures on stablecoin issuers. Policymakers see the move as a foundation for safer digital finance, but analysts warn it could have unintended effects: chiefly, destabilizing the $29 trillion Treasury market by rerouting liquidity into short-term debt held by stablecoin issuers.
The legislation also carries political overtones. Some Democrats worry that a stablecoin surge could benefit Donald Trump’s digital asset ventures, while others back consumer-first oversight. Meanwhile, the bipartisan Lummis-Gillibrand Payment Stablecoin Act proposes minimum capital reserves and mandatory transparency, steps aimed at taming a fast-moving market that has largely outpaced regulation. The outcome of these bills could define the next era of U.S. dollar dominance on-chain.
Stablecoin Volumes Soar, But So Do the Risks
The numbers are in: stablecoin activity is booming. Monthly transaction volumes hit $710 billion in May 2025, up from $521 billion the year before. User adoption is surging too, with over 35 million unique addresses now active across stablecoin networks, a 50% year-over-year increase. This trend is being driven by everything from DeFi participation to remittances and international settlements, all of which benefit from the low-friction nature of dollar-backed digital assets.
Yet with scale comes scrutiny. Regulators and analysts are raising concerns about compliance, financial crime exposure, and the need for transparent reserves. The industry’s rapid growth risks outpacing the safeguards needed to maintain trust especially if newer entrants launch without robust controls. Stablecoins may be the next evolution of money, but only if trust, governance, and interoperability evolve just as quickly.
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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.
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