This Week Summary on Stablecoin News:
- Wall Street banks are exploring a joint USD stablecoin venture using Paxos infrastructure.
- BitMEX founder Arthur Hayes says the banking stablecoin move could spell the end for Circle’s USDC.
- Hong Kong has passed a stablecoin licensing bill, with regulatory rollout expected by year-end.
- Trump-aligned Republicans are pushing a stablecoin bill to boost demand for tokenized Treasurys.
Big Banks Explore Joint Stablecoin Venture with Paxos
America’s top banks are preparing to enter the stablecoin arena. According to the Wall Street Journal, a consortium including JPMorgan, Bank of America, and Wells Fargo is exploring the creation of a shared USD-backed stablecoin. The group is in early discussions with Paxos to utilize its blockchain infrastructure, potentially building a new token that could serve as a regulated payment asset across the financial system.
This move signals Wall Street’s intention to take a more direct role in the evolution of digital dollars. If successful, the banks could challenge fintech-issued stablecoins like Circle’s USDC, offering institutions and corporates an interoperable and regulation-friendly alternative while reinforcing traditional finance’s control over dollar-denominated settlement flows.
Arthur Hayes Bids ‘Bye-Bye Circle’ Amid Big Bank Stablecoin Buzz
Arthur Hayes, co-founder of BitMEX, didn’t waste time commenting on Wall Street’s plans. In a recent blog post, he suggested that the entry of major banks into the stablecoin market spells the beginning of the end for Circle’s USDC. Hayes has long criticized centralized stablecoin issuers and sees the new consortium as a more direct and politically connected alternative.
While some see this as an overstatement, his perspective underscores a key shift in the market: from fintech-native stablecoins toward institutions with stronger ties to U.S. financial regulators. If the banking consortium can maintain regulatory compliance and offer seamless infrastructure, it may indeed draw volume away from Circle and similar players.
Hong Kong Approves Stablecoin Licensing Regime
Hong Kong has officially passed a bill establishing a licensing framework for fiat-referenced stablecoins. The new regime, expected to go into effect by the end of 2024, will require all issuers of fiat-backed stablecoins to obtain regulatory approval before launching or continuing operations in the territory.
This development positions Hong Kong as a leading regulatory hub for stablecoins in Asia. The regime is tailored to exclude algorithmic stablecoins and focuses solely on tokens with full fiat backing. With Hong Kong’s ambition to balance innovation and compliance, the city may emerge as a key jurisdiction for digital asset issuance and cross-border settlements in the region.
Trump Ally Pushes Stablecoin Bill to Boost Treasury Demand
Republicans are preparing to advance new legislation that would provide a regulatory framework for stablecoins, with direct implications for U.S. Treasury markets. As reported by CNBC, former Trump official Paul Atkins, now dubbed the “crypto czar,” is championing the bill as a means to unlock global demand for tokenized Treasurys via stablecoins.
The bill is being framed as a national interest issue: ensuring dollar dominance in digital finance while expanding the buyer base for U.S. debt. By enabling stablecoin issuers to hold Treasurys with fewer restrictions, the legislation could channel trillions in new demand toward government bonds—linking stablecoin growth directly to macroeconomic policy.
—
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.wsj.com/finance/banking/crypto-stablecoin-big-banks-a841059e
https://coingape.com/bye-bye-circle-arthur-hayes-says-as-big-banks-explore-joint-stablecoin-venture/
https://cointelegraph.com/news/hong-kong-passes-stablecoin-bill-opens-licensing-by-year-end
