As USD-pegged stablecoins increasingly flood the marketplace competing for users, liquidity splinters across platforms and may prevent most from ever achieving operationally effective adoption. As a result, countless stablecoins, whether privately issued or state-backed, are coming face to face with a brutally simple business model challenge: if circulation doesn’t reach scale, issuers cannot generate enough revenue from their reserve assets to cover operational costs. For financial executives evaluating payment integrations or treasury strategies, this dynamic should set off alarms. The situation grows more precarious when yields fall, as they inevitably might. The fragmentation of the stablecoin market matters because liquidity is self-reinforcing. A coin that’s widely used in trading pairs, accepted across exchanges and integrated into payment rails attracts more users. The inverse is also true: illiquid stablecoins languish in obscurity, unable to build the velocity required for sustainable revenue. For CFOs and payment firms, this creates risk at the integration layer. Choosing to accept or settle in a subscale stablecoin exposes the firm to the possibility of abrupt issuer retrenchment, de-pegging events or simply a business model that fails quietly when reserves can no longer fund operations. Many firms are weighing whether to settle cross-border payments, manage treasury liquidity or offer customer accounts denominated in stablecoins. The irony is that the very attribute stablecoins promise around stability depends less on cryptography or regulatory oversight than on something far more mundane: scale economics. Without sufficient user base and circulation, the math simply doesn’t work. Even if reserves are fully collateralized, an issuer unable to fund compliance or security is a weak link. At the same time, holding multiple stablecoins might spread regulatory risk but can also dilute liquidity and expose firms to subscale issuers with fragile business models. The viability of a stablecoin can be as much a question of sustainable business modeling as it is of collateral management.
AGII expands predictive AI frameworks to make smart contracts self‑scaling; forecasting bottlenecks and reallocating resources for lower latency and higher throughput across Web3
AGII announced the expansion of its predictive AI frameworks, designed to elevate the scalability and efficiency of smart contracts across decentralized systems. This development solidifies AGII’s leadership in adaptive Web3 infrastructure by enabling contracts to intelligently adjust to changing data and workload demands in real time. The upgraded predictive engine leverages AGII’s deep learning logic and automation layers to optimize how smart contracts operate across networks, regardless of complexity or user volume. By forecasting operational bottlenecks and automating resource distribution, AGII empowers developers to deploy contracts that can grow with user needs—without compromising performance. This strategic move positions AGII to support Web3 applications requiring adaptive execution, predictive task management, and real-time response, especially across DeFi, AI-data pipelines, and cross-chain protocols. The update ensures more reliable outcomes, reduced latency, and improved contract throughput under dynamic load conditions.
BIS opines stablecoins might require a more restrictive regime than in traditional finance due to lack of established safeguards and a tailored regulatory approach with technological neutrality
The growing ties between stablecoins and the traditional financial system pose risks to financial integrity and financial stability, the BIS said in one of the key takeaways from a bulletin. The BIS also said the use of foreign currency-denominated stablecoins could threaten monetary sovereignty and the effectiveness of current FX regulations, and there is a need for regulatory approaches that are tailored to stablecoins. As for the policy response required by stablecoins, the bulletin said that while regulatory frameworks are often confined to jurisdictional borders, stablecoins transact around the world. A regulatory framework tailored to stablecoins could leverage the information provided by blockchains to combat money laundering and other unlawful activities, the bulletin said. It also suggested that there’s a need for international cooperation and technological neutrality in regulation. “Bespoke frameworks need not imply a reduction in regulatory stringency,” the bulletin said. “On the contrary, since many entities within the stablecoin ecosystem operate without established safeguards, a more restrictive regime may be necessary than in traditional finance, where such safeguards are in place.” The organization suggested that a tokenized unified ledger developed by central banks and public authorities will enhance efficiencies without the shortcomings of stablecoins.
Atlas’s stablecoin accounts to enable businesses to send, receive, and hold stablecoin balances much like traditional fiat bank accounts, convert them into 26+ fiat currencies and earn yields of up to 11% APY on their balances
Atlas has launched stablecoin accounts. Allowing businesses and private wealth structures to send, receive, and hold stablecoin account balances, similar to how a traditional fiat bank account works. “The best fintech products have always been about providing access. Atlas is taking a multi-coin, multi-chain approach.” Said James Robertson, Head of Product at Atlas. “We are currently connected to more than 50 blockchains, with all 200 stablecoin issuers available, including USDC (Circle), USDT (Tether), (RLUSD) Ripple and PYUSD (PayPal). Always connected to whatever stablecoin and blockchain your customers want to pay you with.” Account holders can frictionlessly move between blockchain, currencies, and into over 26 fiat currencies. Even earn a yield on their stablecoin balances of up to 11% APY. “We’re taking the same principles of our core multi-currency banking product, and applying it to stablecoins. Funds are held in reserve 1:1 which can be verified on-chain. Customisable user permissions and approval processes, with downloadable statements and transaction reports. Backed up with a $30m insurance policy” added Robertson.
Lloyds and Aberdeen Investments use tokenised units of money market fund and UK gilts on public permissioned blockchain as collateral for foreign exchange trades
In a UK-first, Lloyds Banking Group and Aberdeen Investments have used tokenised real-world assets as collateral for foreign exchange trades. Tokenised units of Aberdeen Investment’s money market fund and tokenised UK gilts were issued, transferred, and securely held by FCA-regulated digital asset exchange Archax on the Hedera Hashgraph public permissioned blockchain. Archax says digital assets can be programmed to automatically follow the rules of trading agreements streamlining the margining process, reducing operational costs, enhancing collateral efficiency, and minimising counterparty risk. Wider adoption of tokenised funds as collateral could also help reduce systemic risk during periods of market stress by enabling digital transfers instead of forced asset sales, thereby reducing volatility. Peter Left, head, digital finance, Lloyds, says: “This groundbreaking initiative proves that digital assets can be used in regulated financial markets under existing legal frameworks here in the UK. It’s a major step forward in demonstrating how tokenisation can enhance collateral efficiency, reduce friction, and unlock new trading opportunities.”
Moonpay partnership seeks to have new cards connect to users’ crypto wallets and enable stablecoin and crypto payments at the more than 150 million locations where Mastercard is accepted
Mastercard and MoonPay’s partnership enables people and businesses to pay and be paid using stablecoins across global markets. The two teams met at MoonPay’s newly opened U.S. headquarters for a three-day session on what the new card program should offer, what customers it would target and a slew more details for the planned launch. This work is representative of a massive effort across the crypto and traditional finance ecosystems, with both sides collaborating more than ever to cross-pollinate innovations across industries and create new capabilities for consumers. The goal, according to many working in this space, is nothing short of recreating payments — and the very nature of money. A big focus of these efforts involves stablecoins, cryptocurrencies pegged to another asset, like the U.S. dollar, so they maintain a consistent price. “We’re upgrading money for the internet,” MoonPay CEO and co-founder Ivan Soto-Wright, said alongside Grossman later that day. “Everything about MoonPay has been built around backwards compatibility to the existing financial system. So we want to plug in every single payment across every single part of the world.” Together, they’re looking to have new cards connect to users’ crypto wallets and enable stablecoin and crypto payments at the more than 150 million locations where Mastercard is accepted.
SettlePal provides a 24/7 network that enables instant USDT delivery the moment payment is confirmed without pre-funding
SettlePal has just launched a powerful new solution for businesses navigating the crypto economy: a real-time USDT settlement layer designed specifically for merchants, crypto platforms, and cross-border payment providers. As delays continue to frustrate businesses and users alike, SettlePal’s infrastructure offers a seamless way to deliver stablecoins like USDT instantly, without the inefficiencies of old-school payment systems. SettlePal provides a 24/7 network that enables instant USDT delivery the moment payment is confirmed. There’s no need for pre-funding, no unnecessary risk, and no waiting around. Once fiat payment is verified as in progress, SettlePal steps in and releases USDT on behalf of the platform. When the fiat clears on the backend, everything reconciles smoothly. This approach helps merchants move faster, strengthens customer trust, and removes a major pain point in the adoption of crypto payments. By eliminating pre-funding requirements and enabling round-the-clock delivery – even outside banking hours – SettlePal is helping platforms scale confidently. SettlePal works only with regulated partners and avoids any exposure to token volatility or speculative models. Everything is tracked transparently through TXIDs and dashboards, and the platform adheres to strict security standards, including SOC 2 Type II compliance.
US regulators provide blueprint for lenders’ crypto custody – requiring a risk-governance framework that appropriately adapts to relevant risks
US regulators gave fresh guidelines for how banks can offer crypto custody services and not run afoul of rules. Banks that contemplate providing safekeeping for crypto-assets should consider the evolving nature of the crypto market, including the technology underlying the cryptoassets, regulators said. The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency said firms must also implement a risk-governance framework that appropriately adapts to relevant risks. The statement outlined key risk areas and warnings for banks to consider: Potential risks prior to offering crypto safekeeping; Being held liable for customers’ losses in cases of possible compromise or loss of cryptographic keys or other sensitive information; Crypto safekeeping relationships are subject to applicable Bank Secrecy Act/Anti-Money Laundering laws; Risks from contracting with a third-party; Appropriate audit coverage — especially assessing management and staff expertise.
AGII’s lightweight modules optimize the interaction between smart contracts and on-chain data, allowing AI-powered Web3 systems to react instantly to changing conditions and seamless integration between various components of dApps
AGII, a platform specializing in AI-driven Web3 infrastructure, has introduced a new suite of lightweight modules designed to enhance the responsiveness of smart contracts. The aim is to reduce latency and ensure reliable and accurate smart contract operations. The modules optimize the interaction between smart contracts and on-chain data, allowing decentralized systems to react instantly to changing conditions. This results in quicker transaction finality and shortened decision-making cycles, which are often bottlenecks in existing blockchain environments. The modules also promote a more seamless integration between various components of dApps, enhancing application responsiveness. AGII’s lightweight modules are particularly advantageous for developers looking to build or optimize applications within a decentralized framework. The company has embedded these modules directly into its AI-powered core infrastructure, facilitating a low-resource, real-time processing environment without compromising predictive intelligence or functional reliability. This streamlined architecture enables the deployment of more agile and adaptive smart contracts that can function efficiently across multiple blockchain networks. AGII’s lightweight module rollout aligns with its mission to provide scalable, intelligent infrastructure for decentralized operations.
BNY to act as the primary reserve custodian for Ripple’s RLUSD stablecoin purpose-built for enterprise utility to support faster and low-cost cross-border payments
Blockchain company Ripple chose BNY for the primary custody of its stablecoin reserves. Via the partnership, BNY will act as the primary reserve custodian for Ripple’s RLUSD stablecoin, using its “deep technology stack and expertise enabling the digital assets ecosystem. Unlike stablecoins geared primarily toward retail users, RLUSD has been purpose-built for enterprise utility, particularly in improving the speed, cost and efficiency of cross-border payments. In addition, BNY will provide its leading transaction banking services to underpin RLUSD’s operations and deliver integrated solutions. “Ripple USD addresses a critical gap in the market as a stablecoin developed for enterprise-grade financial use cases, designed to meet the rigorous standards of leading financial institutions,” said Jack McDonald, SVP of Stablecoins at Ripple. “BNY brings together demonstrable custody expertise and a strong commitment to financial innovation in this rapidly changing landscape, as well as a forward-thinking approach to digital asset infrastructure, making them the ideal partner for Ripple and RLUSD.”