This Week’s Headlines:
- US Treasuries see demand surge from stablecoin issuers
- Visa, Mastercard, Circle, and JPMorgan accelerate in stablecoin space
- Asian banks turn to stablecoins to prevent deposit flight
- EU shifts to softer stance on foreign stablecoins
US Treasuries See Demand Surge Driven by Stablecoin Issuers
At a recent symposium in Boston, market strategists highlighted how stablecoin issuers have become major buyers of short-term US Treasuries and repos. With approximately $200 billion already tied up in T-bills, a rise in stablecoin market caps could directly translate to more Treasury demand. Analysts now see stablecoins as potential support for the oncoming $1 trillion surge in Treasury supply this year, positioning these issuers as incremental buyers in the government debt market.
Issuers like Circle and Tether need liquid, low-risk assets to maintain their 1:1 dollar peg. With the GENIUS Act gaining momentum, reserve requirements may tighten, further increasing demand for Treasuries. Experts warn, however, that a stablecoin-induced Treasury boom could steepen yield curves and complicate debt financing strategies.
Visa, Mastercard, Circle & JPMorgan Scale Up Stablecoin Initiatives
Traditional financial players are deeply ramping up stablecoin efforts. Visa and Mastercard are embracing FIUSD, a stablecoin developed by Fiserv, integrating it into their merchant and consumer networks. Mastercard will support FIUSD transactions at 150 million merchants, aiming to bridge crypto rails with everyday commerce. Meanwhile, Circle's USDC continues gaining traction, bolstered by the GENIUS Act’s regulatory progress, and JPMorgan is exploring its institution-focused stablecoin, JPM Coin, to modernize interbank settlements.
Despite concerns over stablecoins disrupting card giants, Visa and Mastercard are adapting. Analysts believe they might offset some fee loss by integrating stablecoins into existing payment flows, while fintechs and banks race to deploy compliant digital-dollar solutions.
Asian Banks Turn to Stablecoins to Prevent Deposit Flight
Banks across Asia, including major institutions in Korea, Japan, and Hong Kong, are exploring stablecoins, both global tokens like USDT/USDC and local-currency versions, as tools to stem deposit outflows and retain revenue from cross-border payments. In Korea, eight banks have formed a consortium to launch a won-pegged stablecoin, while Japanese banks are piloting yen-backed tokens for trade finance. Hong Kong’s Bank of East Asia is deploying both USD and HKD stablecoin networks to keep value circulating within their systems.
This wave of adoption highlights stablecoins’ dual role: reducing transaction costs and retaining domestic liquidity. However, it also raises questions about regulatory oversight and interoperability as multiple local tokens emerge across the region.
EU Shifts to Softer Regulatory Tone for Foreign Stablecoins
The European Commission is moving toward treating non-EU stablecoins, such as USDC and USDT, as equivalent to EU-registered ones under the MiCA framework, easing cross-border operability. This marks a reversal from the ECB’s earlier warnings that foreign stablecoins might threaten financial stability in times of stress.
Under the updated guidance, risk is considered “highly unlikely” and manageable under existing regulations. The Commission’s stance is seen as a significant win for industry groups and a step toward safeguarding the digital euro’s role while keeping the EU competitive in global crypto markets.
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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://www.cnbc.com/2025/06/28/stablecoin-visa-mastercard-circle-jpmorgan.html
https://cointelegraph.com/news/eu-softer-tone-foreign-stablecoins-industry-win
