Stablecoins

A new report from the Bank for International Settlements (BIS) challenged the notion that stablecoins can serve as money in a modern financial system.

According to the BIS Annual Economic Report 2025, stablecoins fail the fundamental tests of “singleness,” “elasticity” and “integrity,” three critical criteria that define effective monetary instruments.

The BIS described stablecoins as “digital bearer instruments” that resemble financial assets more than actual money. “Stablecoins perform poorly when assessed against the three tests for serving as the mainstay of the monetary system,” the report said.
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Why Companies Like JP Morgan And Visa Are Creating Crypto Tokens​

Stablecoin issuer Circle applies for a national bank charter​

• Circle Internet Group submitted a bank charter application to the Office of the Comptroller of the Currency. Circle is the issuer of the USDC stablecoin.
• The firm hopes to establish a national trust bank, which will be named First National Digital Currency Bank, N.A.
• Anchorage Digital is the only other crypto company to obtain such a license.

The Wyoming Stable Token Commission has launched the Frontier Stablecoin Token (FRNT) as the first dollar-pegged stablecoin issued by a US state government, which can be used for real-world transactions, according to a statement shared on Monday.

The Commission, created through the Wyoming Stable Token Act in 2023, provides governance and regulatory oversight for Wyoming’s pioneering stablecoin project.

As noted in the release, FRNT is built on Avalanche and stands out from other stablecoins as Wyoming law requires it to be overcollateralized, maintaining 102% reserves in short-term US Treasuries and dollars.

In addition to Avalanche, the token has been deployed on six other blockchains, including Arbitrum, Base, Ethereum, Optimism, Polygon, and Solana, according to the product page.
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FRNT is anticipated to be available for public purchase in September 2025.
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The Commission does not anticipate selling FRNT directly to the public. Instead, FRNT will be available for purchase through a network of authorized resellers that complete a robust "Know Your Business" review by the Commission.
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How Stablecoins Could Help Small Businesses Slash Credit Card Fees​

Tether Holdings SA is hiring two of the world’s most senior precious metals traders from HSBC Holdings Plc, as the stablecoin giant deploys its deep pockets to build a vast gold reserve and challenge the established players of the bullion market.

HSBC’s global head of metals trading Vincent Domien is set to join the cryptocurrency firm in the coming months, along with Mathew O’Neill, head of precious metals origination for Europe, the Middle East and Africa, people familiar with the matter said. Both have been serving their notice periods in the bank, the people added, asking not to be named as the information isn’t public.
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Domien currently holds a position on the board of the London Bullion Market Association, the de-facto standard setter for the world’s gold market. He joined HSBC from Societe Generale SA in 2019, becoming global head of metals trading in 2022. O’Neill has been with the bank since 2008.
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European Banks Are Embracing Stablecoins With An Eye On The Future​

• Banks and bank-affiliated entities will likely issue stablecoins in 2026, particularly in Europe, where there is growing interest in developing euro-pegged stablecoins.
• The tokenization of real-world assets for investment purposes and increased stablecoin use for retail and corporate payments should gradually create demand for euro-pegged stablecoins and could provide new revenue streams for European banks.
• S&P Global Ratings expects the euro-pegged stablecoin market to grow from a shallow level of about €650 million at year-end 2025 to between €25 billion and €1,100 billion by 2030 (equivalent to 0.1% to 4.2% of eurozone banks’ overnight deposits) driven by tokenized investments and, to a lesser degree, payments with stablecoins.

• Stablecoin issuer Circle surged after the U.S. Office of the Comptroller of the Currency granted it approval to operate as a trust bank.
• The approval gives the company the ability to directly manage reserves for its regulated stablecoins, primarily the USDC stablecoin.
• The news reflects a broader trend in the crypto industry, where companies are trying to make a big shift from being financial applications to financial infrastructure.