Stablecoin yields are highlighting how far traditional bank deposit rates lag behind real short-term government benchmarks, turning “holding dollars” into a competitive product category outside the deposit system. Using FDIC national rates (Dec. 15, 2025) versus a Treasury reference yield of about 3.89%, the gap is stark: savings around 0.39%, interest checking around 0.07%, and money market deposit accounts around 0.58%, implying a spread of roughly 3.3%–3.8%.

Japanese financial giant SBI Holdings and Web3 infrastructure firm Startale Group have signed an MoU to develop a regulated Japanese yen stablecoin targeted for launch in Q2 2026. The stablecoin will be issued and redeemed by Shinsei Trust & Banking, a subsidiary of SBI Shinsei Bank, while SBI VC Trade, a licensed crypto asset exchange, will handle its circulation.

Stablecoins are rapidly emerging as a serious competitor to traditional payment networks like Visa. Over the past month, the 30-day average stablecoin transaction volume has quietly surpassed Visa’s, signaling growing adoption of crypto payments and on-chain dollars.

The Czech National Bank (CNB) has quietly purchased around $1 million in Bitcoin (BTC), USD-backed stablecoins, and a tokenized deposit, creating a dedicated “test portfolio” for digital assets. This move comes despite European Central Bank (ECB) President Christine Lagarde’s firm stance that Bitcoin should not be included in central bank reserves under the ECB’s umbrella.

Visa announced a new Visa Direct pilot that lets businesses fund payouts in fiat while recipients opt to receive funds in USD-backed stablecoins like USDC, enabling near-instant, borderless transfers to on-chain wallets. Revealed at Web Summit and expanded from a SIBOS 2025 pilot, the initiative targets faster, more flexible cross-border payments and financial inclusion in regions with currency volatility or limited banking access.

Stream Finance has paused deposits and withdrawals after an external fund manager disclosed a roughly $93 million loss in fund assets, according to the protocol’s announcement on X. The team said it has engaged Perkins Coie attorneys Keith Miller and Joseph Cutler to investigate and is withdrawing all liquid assets while providing periodic updates.

China’s central bank intensified its stance against stablecoins, with People’s Bank of China (PBoC) Governor Pan Gongsheng calling dollar-pegged tokens a threat to global financial stability and monetary sovereignty. Speaking at the Financial Street Annual Meeting in Beijing, Pan said stablecoins amplify vulnerabilities in the financial system and fall short of core compliance standards, including AML and KYC, warning they can facilitate illicit finance.

Stripe’s new payments-focused blockchain, Tempo, secured $500 million in Series A funding led by Thrive Capital and Greenoaks, valuing the Layer-1 network at $5 billion, according to Fortune. The raise comes less than two months after Stripe unveiled Tempo in partnership with Paradigm, positioning it as a “payments-oriented L1” optimized for high-scale, real-world financial applications like stablecoin payments and cross-border settlements.

The Bank of England (BoE) has clarified that its proposed caps on stablecoin holdings and transaction sizes are intended to be temporary safeguards, not permanent barriers to digital asset adoption. Speaking at DC Fintech Week, Deputy Governor Sarah Breeden emphasized the BoE’s aim to support a role for regulated stablecoins within a “multi‑money system” while preserving financial stability during the transition.

A consortium of major banks—including Bank of America, Goldman Sachs, Deutsche Bank, Citi, and led by BNP Paribas—announced a project to explore issuing 1:1 reserve-backed stablecoins on public blockchains, pegged to G7 currencies such as the U.S. dollar, euro, and Japanese yen.

Jupiter, Solana’s leading DEX aggregator, is launching a new Solana-based stablecoin called JupUSD in partnership with Ethena Labs, slated for mid–Q4 2025. Per the announcement, JupUSD will integrate across Jupiter’s ecosystem as collateral on Jupiter Perps, a core liquidity asset in lending pools, and a primary trading pair—positioning it as the backbone for Solana DeFi users.

The Bank of England (BoE) plans to exempt crypto exchanges and other operationally critical firms from proposed stablecoin holding limits, a move that could channel significant liquidity into Bitcoin (BTC) and Ethereum (ETH). By granting waivers for market-making and settlement operations—and allowing stablecoins for settlement in the Digital Securities Sandbox—the BoE addresses industry concerns that previous caps were unworkable.

Circle, the issuer of the USDC stablecoin, has partnered with crypto infrastructure provider Crossmint to expand USDC usage across multiple blockchain rails. The collaboration integrates Crossmint Wallets and APIs for onramps, payments, and orchestration, enabling both humans and AI agents to transact seamlessly with digital dollars. Circle highlighted that this partnership lays the groundwork for a “new era of finance” where money moves instantly and globally.

PayPal’s stablecoin PYUSD (PayPal USD) is undergoing a major upgrade that could reshape its role in the crypto economy. Through its integration with LayerZero’s Stargate Hydra, PYUSD will now function as a true cross-chain stablecoin by expanding to nine additional blockchains, including Avalanche (AVAX), Aptos (APT), Sei (SEI), and Tron (TRX).

Japan’s third-largest credit card company, Credit Saison, has announced the launch of a $50 million blockchain venture fund aimed at supporting early-stage startups in the U.S. and helping them expand into Asia. The fund, named Onigiri Capital, has already raised $35 million and will focus on innovative projects in stablecoins, tokenization platforms, decentralized finance (DeFi), and digital payment infrastructure.

Tether has reversed its earlier decision to freeze USDT circulating on older, less active networks. Instead, these blockchains—including Omni, Bitcoin Cash SLP, and Kusama—will now be classified as “unsupported.” This means that while no new USDT will be issued or redeemed on these platforms, existing tokens won’t be frozen, allowing holders to retain use of them on secondary markets.

Circle has announced a new partnership with Finastra, a global financial software firm, to expand the use of its USDC stablecoin in cross-border payments. Through this collaboration, Circle’s USDC will be integrated into Finastra’s Global PAYplus (GPP) platform, which supports nearly $5 trillion in annual global transactions used by thousands of financial institutions worldwide.

China is considering a significant policy shift by allowing the use of yuan-backed stablecoins to promote the global adoption of its currency, according to recent reports. The State Council, China’s top government body, is expected to review a roadmap that would set targets for international yuan usage, assign regulatory responsibilities, and establish risk management guidelines.

Goldman Sachs has released a new report predicting a massive surge in the stablecoin market, projecting that its value could reach into the trillions of dollars in the coming years. The bank highlights that while stablecoins—digital assets pegged to stable assets like the U.S. dollar—are currently valued at around $288 billion, their primary use has been limited to crypto trading and offshore demand for dollars.

Circle plans to launch its new Arc layer-1 blockchain with “day one” institutional access through Fireblocks, the custody and tokenization platform used by over 2,400 banks, asset managers, and fintechs. Arc is positioned as an enterprise-focused chain for “stablecoin finance,” aiming to provide predictable fees, compliance-ready features, and institutional-grade tooling.