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.

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.

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.

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.

Institutional confidence in stablecoins has reached unprecedented levels, with over 50% of the $3 trillion in digital asset transfers processed by Fireblocks involving stablecoins like USDT and USDC.