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Stablecoin

Ripple Exec Predicts Key Trigger for $2.5 Trillion Stablecoin Market Expansion

by admin August 25, 2025

Recent forecasts foresee stablecoin market valuation reaching $2.8 trillion by the year 2028. At its current valuation of nearly $300 billion, stablecoins reaching $2.8 trillion would require a $2.5 trillion market expansion.

According to Reece Merrick, Ripple’s Senior Executive Officer/Managing Director in Middle East and Africa, this robust expansion is be underpinned by regulatory advancements like the U.S. GENIUS Act and growing fintech integration with stablecoins playing an increasingly important role in delivering stability and liquidity across volatile financial ecosystems.

The stablecoin market, currently valued at approximately $300 billion, is projected to experience significant growth, potentially reaching $1.2 trillion by 2028, with some forecasts reaching up to $2.8 trillion by 2028

This robust expansion, underpinned by regulatory…

— Reece Merrick (@reece_merrick) August 25, 2025

The Ripple executive predicts that the latest wave of adoption for the stablecoin market might be driven by utility and institutional demand. This follows as stablecoins become a key part of global financial infrastructure.

Stablecoin market predictions

The stablecoin market is projected to experience significant growth in the years ahead. Recent projections predict stablecoins potentially reaching $1.2 trillion by 2028, with some forecasts reaching up to $2.8 trillion by the year 2028.

Trump-Backed World Liberty Gets Coinbase Approval With USD1 Stablecoin Listing

by admin August 24, 2025

In brief

Coinbase is listing the World Liberty Financial stablecoin, USD1.
World Liberty Financial is backed by President Donald Trump and its sons.
While a dollar-pegged stablecoin like USD1 won’t see a price jump from the listing, it could boost World Liberty’s visibility.

The USD1 stablecoin from World Liberty Financial—a crypto project backed by President Donald Trump and his sons—is now available for trading on Coinbase, the exchange announced on Thursday.

America’s biggest crypto exchange announced the listing in a Thursday post on X. Eric Trump, the president’s son and World Liberty co-founder, then reposted it and said that more news related to the crypto project was coming “very soon.”

Decrypt reached out to WLF for comment but did not immediately receive a response.

Coinbase told Decrypt that it listed the coin because it “strives to bring to market the products and services our customers want.” American users can now access USDC, Tether’s USDT, USD1, PYUSD, USDS, PAX, and DAI stablecoins on Coinbase.

In March, Decrypt reported that World Liberty had launched its own stablecoin. A stablecoin is a digital token typically pegged to the value of the U.S. dollar, but sometimes other non-volatile assets like alternative fiat currencies or gold.

Before listing USD1, Coinbase provided support for the two major stablecoins, USDT and USDC, and other smaller tokens.

The announcement comes amid a wave of activity in the stablecoin market coinciding with the run-up to and passage of the GENIUS Act, which set guidelines for issuing and trading stablecoins in the U.S. In recent months, a number of major financial services companies and other entities have introduced stablecoin initiatives, or said they were exploring efforts in the space.

Stablecoins are a key part of the crypto economy, because traders would use them to swiftly enter and exit digital asset transactions. Instead of using dollars on traditional banking rails, digital tokens accelerate the crypto trading process.

USD1 is planned to be usable on World Liberty Financial, a decentralized finance or DeFi platform announced in 2024. The Ethereum-based platform, which is being built with the Aave protocol, will provide crypto borrowing and lending services. However, it has yet to launch to the public.

In addition to the USD1 stablecoin, World Liberty has also launched its own native token, WLFI. That token is not currently tradable, though token holders voted in July to make it possible to buy and sell the Ethereum-based token.

Democratic lawmakers have called out World Liberty and its connection to President Trump, especially following the use of USD1 for a $2 billion investment from Abu Dhabi-based sovereign wealth fund MGX into leading crypto exchange Binance.

Even Republicans have suggested that Trump’s various crypto dealings—including World Liberty and his own personal Solana meme coin—have made it more difficult to advance crypto legislation in Washington.

However, the House and Senate ultimately passed the GENIUS Act stablecoin bill, which Trump signed into law in July.

Editor’s note: This story was updated with an expanded list of supported stablecoins on Coinbase.

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August 24, 2025 0 comments

Crypto Trends

Latest RLUSD Stablecoin Could Propel Ripple To Limelight Amid Trillion-Dollar Predictions

by admin August 24, 2025

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Ripple’s RLUSD stablecoin is a potential game-changer in the rapidly expanding stablecoin market, which is projected to reach trillions of dollars. With SBI Holdings planning to bring RLUSD to Japan, the stablecoin could be integrated alongside XRP, positioning Ripple for a stronger role in global payments.

RLUSD To Propel Ripple Into Global Spotlight

A recent report by tech researcher SMQKE on X social media has reignited attention on Ripple’s strategic moves in Japan. With the introduction of RLUSD in the country, the crypto payments company could steer its growth in the stablecoin market, which is projected to expand from a 300 billion valuation to a trillion in the coming years.

SMQKE stated in his post that Ripple’s On-Demand Liquidity (ODL) service is already operational in Japan, allowing RippleNet customers to leverage XRP for cross-border payments. This development reduces pre-funding requirements and positions XRP as a critical liquidity tool for remittances, particularly in one of the world’s most expensive cross-border payment corridors.

SMQKE further pointed to the alignment between the firm’s ODL infrastructure and the upcoming introduction of RLUSD. With SBI Holdings confirming plans to bring the stablecoin to Japan in early 2026, RLUSD is poised to complement XRP in powering remittance flows and institutional payments. This dual-layered ecosystem, where XRP drives liquidity and RLUSD ensures stability, could strengthen Ripple’s position in a market expected to multiply.

The integration holds particular significance for Japan’s payment ecosystem, where remittance flows from the country to the Philippines, mainly driven by the country’s third-largest foreign worker population, reached nearly $1.8 billion in 2020. Japan also carries some of the world’s highest cross-border payment fees. In line with this, the company’s ODL service, in collaboration with SBI Remit, Coins.ph, and SBI VC Trade, directly addresses these inefficiencies. At the same time, the pending rollout of RLUSD in Japan adds another layer of utility.

Ripple And SBI’s Role In Distributing RLUSD

Ripple has confirmed its recent advancements in Japan in a press release announcing the upcoming launch of the RLUSD stablecoin within the country. The crypto company disclosed that as stablecoins become an integral part of the global financial infrastructure, the next wave of adoption is set to be driven by practical utility and institutional demand.

Ripple and SBI Holdings disclosed a new Memorandum of Understanding (MOU) with SBI VC Trade, outlining just how RLUSD will be distributed across Japan. The crypto payments company notes that RLUSD has been positioned as an enterprise-grade stablecoin, fully backed by US dollar deposits, short-term government bonds, and cash equivalents, with independent monthly attestations ensuring transparency. This regulatory and compliance-first design distinguishes the asset from other stablecoins in circulation.

Notably, SBI VC Trade CEO Tomohiko Kondo described the upcoming launch as a significant step forward in expanding stablecoin options in Japan and accelerating the convergence of finance and digital technology. He further emphasized that the company will continue working closely with Ripple to build a safe and transparent financial infrastructure.

XRP trading at $3.05 on the 1D chart | Source: XRPUSDT on Tradingview.com

Featured image from Getty Images, chart from Tradingview.com

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August 24, 2025 0 comments

Japan Targets 20% Crypto Tax, Bitcoin Etf &Amp; Stablecoin By 2026

Crypto Trends

Japan Targets 20% Crypto Tax, Bitcoin ETF & Stablecoin by 2026

by admin August 23, 2025

Japan is moving closer to a major overhaul of how it treats cryptocurrencies. Regulators want to make digital assets easier to own, trade, and invest in as part of a broader plan to turn the country into an “asset management nation.”

Tax Relief for Crypto Investors

Right now, crypto profits in Japan can be taxed at rates as high as 55%. That is far tougher than the 20% flat tax applied to stock and bond gains. The Financial Services Agency (FSA) is proposing a change that would bring crypto into the same 20% bracket.

It also wants investors to be able to carry forward losses for three years, something already common in traditional markets. The idea is simple: reduce the burden on traders, encourage activity, and rebuild trust in the market.

The reform does not stop at taxation. The FSA is preparing to classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act. That would put them in the same category as stocks and bonds, requiring stricter disclosure and insider trading rules. The shift would also clear the way for Japan’s first spot Bitcoin ETF, a product local industry groups have been lobbying for.

Stablecoins and Market Growth

The FSA is also planning to approve the country’s first regulated yen-based stablecoin. JPYC, issued by a Tokyo fintech firm, has set a target of 1 trillion yen, about $6.8 billion in circulation over three years. A stablecoin backed by clear regulation could make it easier for companies and investors to handle digital payments with less risk.

Japan’s crypto market is growing, with domestic trading volumes expected to double from $66.6 billion in 2022. Yet retail adoption lags badly. Surveys show 88% of Japanese residents have never owned Bitcoin. Regulators believe the 2026 reforms can change that by cutting barriers and bringing crypto closer to mainstream finance.

Also Read: SBI Holdings Forms Joint Venture With Circle to Advance USDC in Japan

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August 23, 2025 0 comments

NFT Gaming

5 Cryptos to watch as Citigroup eyes blockchain payment services, stablecoin custody

by admin August 23, 2025

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Citigroup enters stablecoin custody and blockchain payments, signaling a major leap for crypto adoption.

Summary

Citigroup enters stablecoin custody, signaling crypto’s move into mainstream finance.
Little Pepe presale surges as investors eye high-potential tokens.
With exchange listings secured, LILPEPE aims to lead 2025’s top crypto performers.

The digital asset market is preparing for its next major leap as Citigroup, a $2.57 trillion banking giant, confirms its push into stablecoin custody and blockchain-based payments.

With Wall Street preparing to integrate crypto into mainstream finance, investors are searching for tokens positioned to ride this momentum.

Here are five cryptos to buy right now:

Little Pepe (LILPEPE): The memecoin rewriting the rules with sniper bot resistance, zero tax, and $20.6 million+ presale raised.
Solana (SOL): Breaking past $200 with ETF inflows and a $1,000 long-term target.
Tron (TRX): Building structural demand with resilient on-chain growth and a path toward $1.
Arbitrum (ARB): Up 50% weekly as ETH nears $5k, boosted by PayPal and Robinhood integrations.
Mantle (MNT): Surging 30% in 48 hours on Bybit partnerships and MiCA-compliant staking demand.

Impending Citigroup big stablecoin move

With $2.57 trillion in assets under custody, Citigroup has confirmed it’s exploring custody services for stablecoin reserves, crypto ETF infrastructure, and tokenized payments.

The plan aligns with the U.S. GENIUS Act, which requires issuers to back tokens with safe assets like Treasuries or cash. The bank already uses blockchain to transfer USD across financial hubs and is considering establishing a stablecoin.

Citi might become a primary stablecoin payment provider if it performs fully, boosting crypto adoption and investor trust. This backdrop makes the following five cryptos highly relevant in the current environment.

Little Pepe: Memecoin meets institutional-grade strategy

While Citi is shaping the payment rails, Little Pepe is leading a parallel revolution in memecoins. Unlike Dogecoin or Shiba Inu, LILPEPE is not just a meme but a Layer-2 blockchain ecosystem designed for speed, low fees, and community empowerment.

The presale has been remarkable: $20.6 million raised, 13.4 billion tokens sold, and Stage 11 now live at $0.002 per token, already up 100% from its Stage 1 entry price. With demand accelerating and multiple stages left, LILPEPE is building momentum that often fuels massive post-listing rallies.

What makes LILPEPE unique is its sniper bot resistance, the world’s only chain where bots can’t exploit early trading. Combine that with zero buy/sell taxes, a dedicated meme launchpad, and confirmed listings on two top-tier CEXs at launch, and there is a meme token positioned more like a high-growth tech play.

Backing from anonymous experts who helped scale other top memecoins adds credibility, while the recently completed Certik audit strengthens investor trust. Little Pepe’s roadmap also includes a plan to hit a $1 billion market cap and climb into the CMC Top 100 immediately post-listing.

LILPEPE could be the one to deliver 100x returns from launch. In a market where institutions seek stability, LILPEPE demonstrates that memes with robust infrastructure are enduring.

Solana: Can SOL soar to $1,000?

Solana has been one of the strongest large-cap performers this cycle, climbing above $200 with nearly 28% gains in 30 days. The launch of the Solana + Staking ETF has fueled institutional FOMO, while $13b in trading volumes confirms liquidity support.

Solana Price Chart | Source: CoinGecko

Analysts see a short-term correction to $190, but the larger target remains clear: $500 within 6 months and potentially $1,000 long-term if ETF demand and adoption sustain. With the market set to welcome significant capital from Citigroup, Solana is already emerging as a top crypto to buy in 2025.

Tron: The path to $10 looks clear

Tron has quietly become one of the most resilient performers of this market cycle. Trading at $0.36, TRX has grown over 50x since launch while maintaining a strong uptrend channel. Analysts point to consistent accumulation and 11.1 billion+ on-chain transactions, confirming structural adoption across payments and stablecoin transfers.

Tron Price Chart | Source: CoinGecko

The projection for this cycle? A breakout toward $2 in the short term, with the psychological $10 target in sight. With futures markets showing balance and no signs of overheating, TRX remains a reliable bet for investors looking for steady upside.

Arbitrum: Layer-2 leverage on Ethereum’s surge

Arbitrum has surged 50% in the past week, breaking above resistance as Ethereum nears $5,000. As one of the top Ethereum Layer-2s, ARB benefits directly from higher transaction volumes and institutional demand.

Arbitrum Price Chart | Source: CoinGecko

Big partnerships fuel the rally: PayPal is integrating the PYUSD stablecoin on Arbitrum, and Robinhood has tapped the network for tokenized assets. With volume up 133% to $1b and resistance at $0.55–$0.60, analysts believe ARB could climb toward $3+ this cycle as ETH adoption cascades through its ecosystem.

Mantle: New utility, new momentum

Mantle has been one of the biggest surprises of August, rallying 30% in just 48 hours. The surge came after Bybit EU launched MiCA-compliant staking for MNT, marking its first regulated staking product in Europe.

Mantle Price Chart | Source: CoinGecko

With additional integrations into structured products and creator economy tools, Mantle is expanding its utility base. Trading volumes surged to nearly $600 million daily, and derivatives data suggest a potential breakout above $1.40, with a path toward $2 if shorts get squeezed. As a newer Layer-2 solution, Mantle could carve out a strong niche this cycle by positioning itself as a compliance-first blockchain for utility-driven demand.

From Citi to Pepe: The next big cycle winners

Citigroup’s entry into stablecoin custody highlights one undeniable truth: crypto is no longer fringe; it’s the future of global payments. While large caps like Solana, Tron, Arbitrum, and Mantle are primed to benefit, the real asymmetric bet remains with Little Pepe. With exchange listings locked in and community momentum building, LILPEPE could lead the top cryptos to buy this cycle. Don’t miss the chance to buy before the subsequent presale price increase.

To learn more about Little Pepe, visit the website, Telegram, and X.

Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.

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August 23, 2025 0 comments

NFT Gaming

Ripple and SBI to Launch RLUSD Stablecoin in Japan by Early 2026

by admin August 22, 2025

In brief

Japan’s Payment Services Act amendments, effective since 2023, created a licensing regime for issuing and distributing fiat-pegged stablecoins.
SBI VC Trade, the first firm licensed as an Electronic Payment Instruments Exchange Service Provider, already handles USDC and will now add RLUSD.
Japan has a structured and bank-friendly crypto regime, while its local players place a premium on compliance, Decrypt was told.

Ripple and SBI Holdings are preparing to launch the RLUSD stablecoin in Japan by early next year, as the country’s freshly crafted stablecoin laws open its market to foreign issuers.

The joint move was signed under a memorandum of understanding that will see Ripple’s RLUSD stablecoin distributed in Japan through SBI VC Trade, the group’s licensed crypto exchange, Ripple announced late Thursday evening.

Ripple’s entry would help step up the “reliability and convenience of stablecoins in the Japanese market,” SBI VC Trade CEO Tomohiko Kondo said in a statement.

It comes as Japan’s Payment Services Act amendment took effect in June 2023, establishing a licensing regime for electronic payment instruments. An earlier version of the stablecoin framework was passed by the Japanese parliament in 2022.

The framework has been continuously refined through new amendments set to roll out by 2026, including relaxed reserve requirements and updated licensing tiers, according to a report from Asia Business Law Journal.

Under the new rules set to take effect next year, only licensed entities such as fund transfer service providers or trust banks can issue or distribute fiat-pegged stablecoins, a framework that has opened the door to regulated launches like RLUSD.

SBI VC Trade was the first in Japan to secure an Electronic Payment Instruments Exchange Service Provider license, allowing it to handle foreign-issued stablecoins.

“Japan quietly has a very structured and bank-friendly crypto regime given its continuously revised Payment Services Act,” Rick Maeda, Tokyo-based analyst at Presto Research, told Decrypt.

Ripple “leverages this regulatory moat as well as SBI’s deep retail and institutional reach,” Maeda said.

He pointed to RLUSD’s “institutional branding and reserve transparency,” which could help it against competitors, given how the Japanese market’s regulators, banks, and corporates “place a premium on compliance.”

Earlier in March, NYSE-listed stablecoin issuer Circle received the first approval of a U.S. dollar-pegged stablecoin in Japan for its USDC product. Tether, which issues USDT, a larger competing stablecoin, has not received similar approval.

RLUSD, meanwhile, operates with a smaller market circulation of about $667 million over an average daily trading volume of about $71 million, according to data on CoinGecko.

RLUSD is issued under a New York State trust-company charter, backed fully by cash, short-term Treasuries, and cash equivalents with monthly reserve attestations, according to Ripple.

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August 22, 2025 0 comments

Crypto Trends

Ripple, SBI Plan RLUSD Stablecoin Distribution in Japan by 2026

by admin August 22, 2025

Ripple and SBI Holdings plan to roll out Ripple USD (RLUSD) in Japan, aiming to tap into the country’s emerging stablecoin market under new regulatory frameworks.

The two companies announced on Friday that they had signed a memorandum of understanding, in which SBI VC Trade’s role is that of distributor. SBI VC Trade, a licensed Electronic Payment Instruments Exchange Service Provider, aims to make RLUSD to go live in Japan during the first quarter of 2026.

RLUSD is Ripple’s first stablecoin initiative, launched in December 2024. The token is fully backed by U.S. dollar deposits, short-term Treasuries and cash equivalents, with monthly attestations from a third-party firm.

Ripple says this structure offers regulatory clarity and institutional-grade compliance — traits it argues will differentiate RLUSD from peers.

SBI executives framed the partnership as a step in strengthening Japan’s digital finance infrastructure. “The introduction of RLUSD will not just expand the option of stablecoins in the Japanese market, but is a major step forward in the reliability and convenience of stablecoins,” said SBI VC Trade CEO Tomohiko Kondo.

Ripple executives echoed the compliance focus. “RLUSD is designed to be a true industry standard, providing a reliable and efficient bridge between traditional and decentralized finance,” said Jack McDonald, Ripple’s senior vice president of stablecoins.

The rollout also highlights the deepening ties between Ripple and SBI, longtime partners in Asia’s blockchain ecosystem. It also comes as Japan approved the first yen-denominated stablecoin for issuance in the country earlier this week.

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August 22, 2025 0 comments

GameFi Guides

Coinbase Lists Ethereum-Based Stablecoin 4 Months After Launch

by admin August 22, 2025

As the U.S.’s largest cryptocurrency exchange, Coinbase continues to expand its crypto offerings to better serve its users. On August 21, the exchange announced the official listing of the World Liberty Financial USD (USD1).

Built on the Ethereum blockchain, USD-1 is a U.S. dollar-pegged stablecoin created by World Liberty Financial. Its listing on Coinbase marks a major development for crypto users in the U.S., allowing them access to buy, sell, convert, send, receive, and store the stablecoin on the platform.

4-month old USD-1 now on Coinbase

While the move further fortifies the stablecoin’s compliance with U.S. regulatory standards, the listing of USD-1 on Coinbase is coming just four months after its mainnet launch in April 2025.

Although it only entered the crypto space a few months ago, USD-1 has gained significant traction over the months due to its close affiliation with the U.S. dollar. Notably, it has amassed a massive $2.3 billion in market capitalization as of writing.

Although trading for USD1 was rolled out in phases, starting with the USD1-USD pair, it has now been fully listed on the leading exchange as sufficient liquidity has been established for the asset.

While the move appears to have been long anticipated by the users of the platform, Coinbase has warned that users should only transfer USD1 through the Ethereum network to avoid losses.

According to the announcement issued by Coinbase, it has showcased 0x8d0D000Ee44948FC98c9B98A4FA4921476f08B0d as the official contract address of USD-1, noting that transfers over other networks cause irrecoverable losses. It also warned that support for USD-1 via its trading platform may be limited in certain jurisdictions due to regulatory restrictions.

Tether, Circle to Meet South Korea’s Top Banking CEOs as Stablecoin Momentum Mounts

by admin August 21, 2025

In brief

Executives from stablecoin issuers Circle and Tether are set to meet with top figures in some of South Korea’s biggest financial groups this week, according to reports in local media.
The discussions will reportedly revolve around the potential distribution and use of dollar-pegged stablecoins in South Korea, as well as the issuance of won-backed stablecoins.
South Korea’s ruling party and the opposition party have expressed differing opinions about how to regulate stablecoins.

Following reports that South Korea is preparing to launch a legal framework for stablecoins in October, top executives from some of the country’s biggest financial groups are set to meet with executives from stablecoin giants Tether and Circle Internet Group this week.

Tether issues USDT, while Circle issues USDC, the world’s two largest stablecoins by market capitalization.

According to Korean news agency Yonhap, the executives will discuss the potential distribution and use of dollar-pegged stablecoins in South Korea. The meetings will also cover the issuance of stablecoins backed by the country’s currency, the won.

The CEO of Shinhan Financial Group, Jin Ok-dong, and Hana Financial Group CEO Ham Young-joo are set to have separate meetings with Circle President Heath Tarbert on Friday. Ham is also reported to be meeting an unnamed official from Tether later on Friday.

Meanwhile, KB Financial Group’s Chief Digital & Information Technology Officer Lee Chang-kwon and Woori Bank President Jeong Jin-wan are also said to be planning a meeting with Circle’s President, though an official date has not yet been set.

Rajiv Sawhney, Head of International Portfolio Management at Wave Digital Assets International, thinks the development is an “interesting” one considering how South Korea’s regulators have treated crypto in the past.

“Regulators there have historically blocked foreign institutions from registering and operating in the region,” he told Decrypt. “It’s a very domestic market, and the exchanges there are only allowed to list spot products, not perpetuals or leverage trading.”

He points out that Upbit, the country’s largest exchange, is entirely Korean owned and operated, and its listings are primarily quoted against Korean won fiat.

South Korea and stablecoins

Despite the East Asian nation’s current President Lee Jae-myung being widely considered crypto-friendly, the appropriate legal frameworks have proved politically controversial in the country. Under his presidency, Bitcoin ETFs have headed toward legalization in the country, while crypto KYC and AML oversight has been ramped up.

The country’s ruling party and the opposition party have both expressed different opinions about how to regulate the area, with the opposition Democratic Party debating the use of interest-generating stablecoins and the enforcement of strict capital limitations.

Meanwhile, executives from Korea’s central bank have mulled linking its deposit tokens to a public blockchain, enabling them to “coexist” with stablecoins issued by the private sector.

But these issues haven’t stopped some Korean companies from already preparing to issue their own stablecoins, with South Korean internet conglomerate Kakao recently registering trademarks for a Korean won stablecoin.

Sawhney argued that a joint venture or partnership between Circle or Tether and one of the banks would allow them to “maintain their market share in the stablecoin space” versus South Korean fintech firms issuing their own won-based stablecoins.

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August 21, 2025 0 comments

GameFi Guides

Crypto Industry Urges National Stablecoin Plan For The United Kingdom To Compete With US

by admin August 21, 2025

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In a recent open letter to Finance Minister Rachel Reeves, figures from the cryptocurrency industry are calling for the United Kingdom (UK) to develop a national stablecoin strategy, seen as essential for positioning the UK at the forefront of the digital asset landscape.

This comes after the US positioned itself to capitalize on the growing adoption of digital assets through pro-crypto legislation, fulfilling President Donald Trump’s mission to establish the country as the crypto capital of the world.

UK’s Crypto Sector At Risk?

The letter, which garnered support from 30 industry players, emphasizes the need for a proactive and coordinated approach to dollar-pegged cryptocurrencies. It argues that they should not be viewed merely as potential risks but as integral components of a financial infrastructure that can be responsibly embraced.

The letter highlights that the United Kingdom must act swiftly to ensure it remains competitive with countries like the United States, which have taken significant steps to integrate stablecoins into their financial systems with the passage of the GENIUS Act.

Industry players have voiced concerns regarding the UK’s current regulatory stance on stablecoins, suggesting that it places the nation’s crypto sector at a disadvantage.

One of the primary issues is the legal classification of stablecoins as “crypto-assets with reference to fiat currency.” Critics argue that this definition focuses too much on the form rather than the function of stablecoins, likening it to defining a cheque solely as paper that references currency.

The establishment of a national stablecoin strategy could enhance the UK’s status as a global financial center, they assert, and generate new revenue streams, particularly in fees and foreign exchange, while also supporting demand for government bonds.

The Key To Unlocking Stablecoin Potential

The letter received endorsements from executives and firms such as crypto exchange Coinbase, Kraken, Copper, Fireblocks, BitGo, and asset manager and crypto exchange-traded fund (ETF) issuer VanEck.

Daragh Maher, HSBC’s head of digital assets research, has highlighted the potential of stablecoins to bridge the gap between traditional finance and the digital asset world.

He described them as the cash equivalent of digital assets, serving as a foundational currency for almost all crypto transactions. Maher also pointed out that stablecoins can facilitate money transfers using blockchain technology, offering a modern alternative for the UK financial system.

Despite their potential, regulatory hurdles remain a significant barrier to the widespread adoption of stablecoins. Maher emphasized that creating a suitable regulatory environment is crucial for unlocking the full potential of stablecoins in the UK.

The daily chart shows the total crypto market cap valuation at $3.81 trillion. Source: TOTAL on TradingView.com

Featured image from DALL-E, chart from TradingView.com

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August 21, 2025 0 comments