The June 29, 2026 announcement deepens an existing relationship between the two companies and gives institutional clients access to USDC custody, transfers, minting, and redemption through BNY’s digital asset infrastructure. 

The announcement placed USDC at the center of BNY’s stablecoin custody rollout for institutions.

BNY Adds USDC To Custody Platform

BNY said institutional clients will be able to hold and transfer USDC from digital asset custody wallets. 

They can also instruct Circle to mint new tokens against dollar deposits or redeem existing tokens back into U.S. dollars. 

The service creates one access point for clients converting fiat dollars into USDC, or burning the stablecoin back into fiat.

The arrangement places BNY as a key operating hub for Circle’s stablecoin within traditional finance. 

Circle chief executive Jeremy Allaire described the agreement as “a big milestone in the convergence of digital dollars with the global financial system.” He also wrote on X that BNY is now “a primary liquidity and custody hub for USDC.”

Circle Relationship Extends Reserve Custody Role

The agreement builds on BNY’s existing role as primary custodian for reserve assets backing USDC. 

That relationship already connected the bank to Circle’s stablecoin infrastructure before the latest custody service was announced.

BNY’s latest offering differs from its tokenized deposit service launched earlier in 2026, where Circle was among the initial participants. 

That service placed on-chain representations of bank deposits on BNY’s private blockchain and targeted collateral and margin workflows. 

The USDC custody service instead supports an existing third-party stablecoin issued by Circle.

Carolyn Weinberg, BNY’s Chief Product and Innovation Officer, said, “As digital assets become increasingly integrated into financial markets, institutions need infrastructure that seamlessly works across traditional and blockchain-based systems.”

USDC Leads BNY Stablecoin Rollout

BNY said it selected USDC first because of Circle’s regulatory standards. Kash Razzaghi, Circle’s chief commercial officer, said, “Making USDC the first stablecoin included in their new offering reflects the regulatory rigor Circle has built into USDC from day one.”

The bank said it plans to support other stablecoin issuers over time after launching with USDC. The move also follows BNY’s May expansion of its digital asset custody footprint into the UAE through partnerships with Finstreet and the ADI Foundation in Abu Dhabi Global Market.

Circle has continued building institutional channels for USDC in 2026. In late June, Circle and Nomura disclosed plans for a corporate USDC settlement service for Japanese businesses by 2027. 

USDC remains the second-largest stablecoin, with a market capitalization of about $73.7 billion, behind Tether’s USDT at $186 billion.

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The planned stablecoin will not be a central bank digital currency, as it would be issued by regulated private entities and not the Bank of Thailand itself. Every token in circulation would have to be fully backed by baht reserves held in well-defined accounts at licensed financial institutions, according to the Bangkok Post. In the first phase, only banks and financial institutions would be allowed to use the stablecoin, and it would work purely for settlement purposes. Other use cases for the general public would come afterwards, pending evaluation.

Thailand to hold public hearing for stablecoin proposal in 2026

According to the Bank of Thailand, its plans are not sudden and come from a well-known foundation. The central bank launched a Programmable Payment Sandbox in 2024 to test baht-pegged digital units in a controlled environment, and later expanded in December 2025 to allow even more experimentation. The structure of the regulation in the proposal for this new stablecoin directly draws on data from those sandbox trials, giving the central bank real operational experience to use in creating the rules governing this baht-backed stablecoin.

Ledger Insights also reported that the BoT has signaled interest in extending stablecoin use into carbon credit markets and green financing, where the use of blockchain settlements could reduce the limited clarity plaguing carbon trading. Bank of Thailand Governor Ratanakorn reiterated the central bank’s interest in reinforcing Thailand’s foreign exchange controls during the conference.

Personal QR code payments within Thailand must be denominated in baht, the governor said, and renminbi-denominated transfers through Alipay and WeChat Pay are not allowed in the Thai market. Between February 2025 and May 2026, regulators suspended about 5,000 accounts used for peer-to-peer renminbi transfers through those platforms. Ratanakorn warned that payment service providers processing transactions in currencies other than the country’s baht face fines, suspension, or removal of their operational licenses.

The governor also addressed the growing number of institutions offering retail foreign exchange trading, stating the central bank has no plans to license speculative forex activity. Providing settlement services for such trades could violate Thailand’s Foreign Exchange Control Act of 1942, carrying penalties of up to 200,000 baht in fines and three years’ imprisonment.

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The European Parliament’s important Committee on Economic and Monetary Affairs (ECON) adopted on Tuesday the so-called Single Currency Package of legislative proposals. The laws are designed to establish a legal framework for a digital version of the common currency while also ensuring that cash remains a viable option throughout the euro area. The digital euro file was approved by 43 members of the committee, with 14 voting against and one abstention, the legislative body detailed in an announcement on its website.

Digital euro moves closer to launch

The central bank digital currency (CBDC) will be an electronic form of money issued by the European Central Bank (ECB) that would work both online and offline, the press release noted. European officials claim the latter option, which will be realized through local storage devices, would be “equivalent to using physical cash,” up to the loss of funds in case of losing the carrier. They also say the digital euro system will ensure the privacy of transactions, thanks to technologies such as zero-knowledge proofs, and that the ECB would have no access to identification data.

Nevertheless, the EU authorities have also addressed worries that the CBDC may threaten the survival of euro banknotes and coins, whose legal tender status will be guaranteed. Another approved proposal aims to safeguard the role of euro cash. It must remain widely accepted and accessible in eurozone countries, which will be required to prepare for disruptions in digital channels. Thus, businesses would not be allowed to reject cash payments, and member-states would be obliged to regularly check its availability, especially with vulnerable social groups in mind, such as the elderly and unbanked people.

“With the single currency package, we are protecting citizens’ freedom to choose how they pay,” commented Fernando Navarrete Rojas, the EP’s lead rapporteur on the digital euro. He also insisted: “The digital euro will complement cash, never replace it. No one should be forced away from cash, and no one should be left without a secure, resilient, and genuinely European digital payment option.” The positive vote at the ECON is paving the way for further advances in the EU’s complex legislative process. The legislation is expected to be adopted by the end of 2026.

It also opens the door for more negotiations on the realization of the digital euro project, which will now focus on the final design of Europe’s digital currency. The European Central Bank hailed the progress in a statement posted on X: “The monetary authority’s reaction came one day after ECB President Christine Lagarde expressed hope that the initiative will move to its next stage, which will be “of a more technical nature.”

That will lead to the launch of a pilot phase of the digital euro, the governor said, emphasizing the need to ensure that all Europeans can have a “good experience” with the digital incarnation of the common currency. In mid-June, Lagarde rallied support for the digital euro in the face of dollar-backed stablecoins and U.S.-dominated global payment systems, as reported by Cryptopolitan. Meanwhile, legislators across the Atlantic are taking steps to prevent the Federal Reserve from issuing a digital dollar. A new Senate bill aims to impose a respective ban until 2030.

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The committee urged regulators to strike a balance between financial stability and innovation as the country works toward a comprehensive stablecoin framework. 

It also cautioned that delays or excessive restrictions could leave the United Kingdom trailing behind other major markets.

The recommendations come as UK authorities move closer to finalizing stablecoin regulations expected before the end of the year. Lawmakers said the current approach should support innovation while maintaining safeguards for consumers and the wider financial system.

Committee Raises Concerns Over Proposed Restrictions

The House of Lords committee largely supports the regulatory plans outlined by the Bank of England and the Financial Conduct Authority. However, it warned that certain measures could weaken the business case for firms seeking to issue stablecoins in the UK.

One major concern involves a proposal requiring stablecoin issuers to hold 40% of backing assets in non-interest-bearing deposits at the Bank of England. The committee argued that this requirement could reduce profitability and make UK-issued stablecoins less competitive in global markets.

Lawmakers also questioned temporary limits on user holdings of stablecoins. They said such restrictions could hinder growth in the emerging sterling-backed stablecoin sector while proving difficult to enforce in practice.

The committee stated that regulators should recognize that the stablecoin market remains in its early stages and adapt rules as the sector evolves. It also supported maintaining one-to-one reserves backed by high-quality assets and backed the creation of a liquidity facility for systemic stablecoin providers.

Regulators Urged to Support Market Development

The report highlighted that dollar-pegged stablecoins continue to dominate the global market while sterling-backed alternatives remain limited. According to the committee, the absence of a complete regulatory framework has slowed domestic stablecoin development and restricted funding opportunities in the UK market.

Lawmakers also called for further assessment of risks associated with unhosted wallets. They asked HM Treasury, the Bank of England, and the FCA to review whether existing regulations adequately address those concerns.

The committee favored a principles-based approach that allows stablecoins to serve multiple use cases without unnecessary restrictions. It also advised regulators against treating stablecoins as inherently more risky than existing payment systems such as bank transfers and card networks.

UK Pressed to Keep Pace With Global Competitors

The House of Lords warned that slow implementation of stablecoin rules could allow the United States and the European Union to strengthen their lead in digital payments innovation. 

The report noted that regulatory delays may limit opportunities for British challenger banks and smaller businesses seeking access to modern payment networks.

Committee chair Sheila Noakes said the UK has fallen behind international peers but is now moving in the right direction. She stressed the need for a framework that encourages innovation while managing risks effectively.

The Bank of England is expected to publish its final draft rules for systemic stablecoins later this month as policymakers continue shaping the future of digital payments in the country.

The post UK Stablecoin Rules Face Criticism Over Innovation Concerns first appeared on Coinfea.

The MGUSD token gives MoneyGram customers a wallet balance inside the company’s existing app, allowing the holding and transfer of USD through MoneyGram’s wide network of 500,000 retail locations worldwide. The newly launched stablecoin has been built with help from three major infrastructural partners. Bridge would be the MGUSD stablecoin’s issuer, a stablecoin platform Stripe acquired in February 2025. The smart contracts handling the minting of the stablecoin were written by M0, while Fireblocks provides the wallet layer in the MoneyGram app.

MoneyGram unveils new MGUSD stablecoin

“Starting with our distribution platform, we’re using stablecoin as a foundation to build future applications on our global network,” MoneyGram chairman and CEO Anthony Soohoo said in a statement. “MGUSD is the stablecoin we built for our customers, for the families sending money home and for the billions of people around the world with limited financial access.”

MoneyGram picking Stellar as the blockchain of choice is also unsurprising, as the company has worked with the Stellar Development Foundation on stablecoin-powered remittance services for almost five years. Stellar Development Foundation CEO Denelle Dixon called the launch “the next milestone that demonstrates what purpose-built blockchain can deliver when paired with a trusted payments network.”

MoneyGram joins a widening group of payment companies and banks racing to wrap stablecoins into their existing products. SoFi recently unveiled its own stablecoin, SoFiUSD. PayPal and Western Union have both partnered with crypto infrastructure firms (Paxos and Anchorage Digital, respectively) to offer stablecoin services. This recent uptick makes a lot of logical sense. Blockchain-based digital dollar tokens help to cut costs and are settled at record-fast time, 24/7, compared to traditional banking.

Citi has projected the stablecoin market could grow from roughly $300 billion today to $4 trillion by 2030. MoneyGram’s angle differs slightly from pure fintech plays. The company already operates one of the world’s largest physical cash-in, cash-out networks. Pairing that with a stablecoin could empower its users to move value digitally and still withdraw cash at a local agent, offering a feature that purely digital stablecoin products do not have access to.

The post MoneyGram launches stablecoin for cross-border payments first appeared on Coinfea.

The bank’s report, titled “Tokenization 2030: Wall Street On-Chain,” outlines different scenarios in relation to the speed of implementation of the process of on-chain settlement in institutional operations. What separates this forecast from earlier tokenization hype is the players behind the infrastructure. The Depository Trust and Clearing Corporation, which processes the post-trade settlement for virtually all U.S. equities, announced in May that it will facilitate initial production trades of tokenized securities in July 2026, with a full-service launch planned for October.

Citi predicts tokenization market expansion

According to Citi, more than 50 firms have joined DTCC’s industry working group, including BlackRock, Goldman Sachs, J.P. Morgan, Morgan Stanley, Circle, Ondo Finance, and Robinhood. In addition, Nasdaq is building a blockchain-based stock issuance system. Intercontinental Exchange, which owns the New York Stock Exchange, is also taking its own steps to tokenize stocks. The simultaneous moves by three of the major institutions within the existing market system indicate something more substantial.

“The industry has moved past talk,” said Nadine Chakar, managing director and global head of DTCC Digital Assets, during a panel at Consensus 2026 in May. “Tokens are now moving on-chain in production environments.” The Citi report also ties tokenization growth directly to the stablecoin market, which the bank expects to reach $1.9 trillion by 2030. Because stablecoin issuers hold U.S. Treasuries as reserve assets, that expansion alone could generate up to $1 trillion in new demand for on-chain government debt.

The connection matters for crypto markets. The growth in the number of stablecoins has become one of the key drivers behind crypto activity, and the Citi prediction seems to be another step towards integration between traditional and blockchain finance systems. More Treasury-backed stablecoins in circulation means more liquidity flowing through on-chain venues. According to Citi, the phenomenon of tokenization will mostly occur in the form of public assets rather than privately-owned ones.

It projects that as much as 10% of the short-term treasury securities in the U.S., as well as 3% of all listed equities, could end up being tokenized by 2030. If even 10% of U.S. retail investors shift to digital trading platforms, demand for tokenized stocks could reach $2.6 trillion. This focus on the public markets is significant when considering the competition between blockchain networks in terms of attracting institutional capital.

According to an analysis by the Cañizares Center for Emerging Markets at Cornell University, tokenized equities would allow for emerging market investors to enter the U.S. markets by circumventing capital controls and expensive brokerage services. Citi expects the traditional financial system and the digital financial system to operate side by side for the foreseeable future. In that environment, the bank sees large institutions that control both real-world assets and digital payment networks gaining a structural advantage.

The post Citi predicts tokenized assets to reach $5.5T by 2030 first appeared on Coinfea.

According to the announcement, the transaction represents a defining milestone for the DDSC stablecoin ecosystem, demonstrating operational readiness, scalability, and real-world applicability at institutional volume. DDSC was launched to be utilized by institutions and governmental entities for payments and collections, settlements, treasury operations, trade and supply chain flows, as well as programmable financial services for regulated entities.

FAB clients to use UAE dirham-backed stablecoin

DDSC is a UAE dirham-backed stablecoin launched following the strategic collaboration between IHC, First Abu Dhabi Bank (FAB), and Sirius International Holding, and supported by ADI Foundation’s blockchain infrastructure. The initiative was established to support secure, compliant, and efficient digital transactions for institutions, businesses, and individuals, while enabling seamless value transfer and settlement across global markets.

The $30 million transaction using DDSC is a validation that the infrastructure is sound and is now ready to move to live deployment. The DDSC AED stablecoin will now be used by clients of FAB for cross-border payments, treasury operations, and trade settlements. The UAE is utilizing AED stablecoins for more efficient, transparent payment rails, ensuring quicker and more transparent cross-border payments. Syed Basar Shueb, CEO of IHC, noted that the transaction is a demonstration of the UAE’s live digital infrastructure and can support real institutional financial activity.

He added, “As one of the founding participants in the DDSC ecosystem, IHC is committed to advancing solutions that improve how capital moves across markets. Executing 110 million ($30 million) DDSC on ADI Chain is a clear signal that we are entering the next phase, where institutional-grade digital assets are not only viable, but operational at scale.” The next phase will add more institutions and the development of cross-border payment and trade corridors connecting the Middle East with key global markets.

The DDSC AED stablecoin is not the only stablecoin that has been approved so far by the Central Bank of UAE. The first AED stablecoin to be approved was the AE Coin by Al Maryah Community Bank, better known as Mbank, while Zand Bank has also received a license for AEDZ, which is the UAE’s first regulated multi-chain AED-backed stablecoin on public blockchains. The UAE Central Bank also approved a USD-backed stablecoin, USDU, to be used as a foreign payment token and an FSRA-regulated fiat reference token.

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Japan’s three largest banks, Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho also revealed that they were building a stablecoin with their joint effort in late 2025. EJPY will be a yen-pegged stablecoin issued under Japan’s Type III electronic payment instrument classification, a trust-based framework that carries significant advantages over other stablecoin categories. It will initially launch on Japan Open Chain (JOC), an Ethereum-compatible Layer 1 blockchain run by a consortium of 14 Japanese corporate validators, including NTT Communications, Dentsu, and Nethermind.

Japan approves new stablecoin for issuance

Ethereum support is also planned from the start. The foundation said it is targeting circulation on JOC within the 2026 fiscal year, which ends in March 2027. EJPY is designed for business-to-business payments, remittances, digital asset settlements, and Web3 services. The foundation has stated that it expects the token “to generate transactions based on real demand.”

The foundation has started holding discussions with potential trustee businesses regarding things like issuance, redemption, trust asset management, system design, and legal compliance, but launch dates and distribution partners are still subject to regulatory approvals. Hiroaki Inaba, the CEO of Japan Blockchain Foundation, said the company has been developing Japan Open Chain as a blockchain platform that Japanese enterprises can use with confidence.

Under the payment services laws in Japan, Type I electronic payment instruments face a per-transaction cap of 1 million yen, which is approximately $6,700. Trust-type stablecoins classified as Type III instruments are exempt from this ceiling. This exemption is what makes the EJPY token the best fit for corporate settlements, institutional transfers, and high-value business payments. The foundation acts as the settlor while trust assets are managed separately by licensed trustee businesses, ensuring the full separation of customer funds from issuer assets.

SBI Holdings and Startale Group are pursuing the same legal pathway with their JPYSC stablecoin, which is being issued by Shinsei Trust & Banking, an SBI subsidiary. That project remains on track for launch in the second quarter of 2026, according to a February announcement. JPYC, which launched in October 2025 as Japan’s first licensed yen stablecoin, operates under the more restrictive Type II funds transfer framework.

Cryptopolitan reported that JPYC has issued over 1 billion yen, about $6.3 million, in tokens since its launch and aims to reach 1 trillion yen, $6.6 billion, in three years. Meanwhile, Japan’s three megabanks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, have been working on their own joint yen stablecoin since at least October 2025, according to Cryptopolitan’s earlier reporting. The three banks serve more than 300,000 corporate clients combined.

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The delay postpones expected rules for stablecoins, crypto exchanges, custody standards, and institutional market access. It also extends uncertainty in one of Asia’s most active retail crypto markets, where investors continue to wait for clearer national rules.

Bill Review Moves Beyond Election Period

The National Assembly’s National Policy Committee did not include the Digital Asset Basic Act in its final bill review subcommittee meeting before recess. As a result, lawmakers now appear unlikely to review the proposal before the June 3 local elections.

The delay adds another setback to a bill that has already faced months of policy disagreement. The main dispute centers on stablecoin oversight, with the Financial Services Commission and the Bank of Korea holding different views on regulatory control.

The bill forms the second stage of South Korea’s crypto rulebook. The country already passed the Virtual Asset User Protection Act in 2023, which focused mainly on investor safeguards. The new proposal would expand regulation across licensing, disclosures, custody, market conduct, and stablecoin reserves.

Stablecoin Plans Face More Uncertainty

The Digital Asset Basic Act would require crypto firms to meet licensing and disclosure standards. It would also ban insider trading and market manipulation, create a Digital Asset Committee, and set custody rules for customer assets.

Stablecoin issuers would need at least 50 billion won in capital under the proposal. That amount equals about $35 million and mirrors standards used for electronic money businesses.

However, several major issues remain unresolved. Lawmakers have not agreed on whether banks should hold majority stakes in stablecoin ventures. They also still need to settle ownership limits for exchanges and other virtual asset firms.

The delay affects companies preparing to issue stablecoins and institutional crypto services. President Lee Jae Myung has supported a won-backed stablecoin as a national priority, arguing that it could reduce reliance on dollar-linked tokens such as USDT and USDC.

South Korea Trails Global Rulemaking Pace

South Korea remains a major crypto market, with about 9.7 million investors and daily exchange volumes that can exceed 11 trillion won during active trading periods. Upbit, Bithumb, Coinone, Korbit, and Gopax continue to dominate licensed domestic trading.

However, the country now risks falling behind other major markets. The European Union implemented MiCA in 2024, while Japan introduced stablecoin rules in 2023. Singapore and Hong Kong have also advanced licensing frameworks for digital asset firms.

Without final rules, global exchanges, banks, fintech firms, and payment companies lack clarity on cross-border operations. Lawmakers may revisit the bill in the second half of 2026.

The post South Korea Digital Asset Basic Act Delay Pushes Crypto Rules Past Elections first appeared on Coinfea.

The move adds fresh Spanish backing to a project aimed at reducing Europe’s reliance on dollar-based digital money. Bankinter is also in advanced talks, while Abanca, Kutxabank, and Cecabank are weighing membership.

Spanish Banks Back Qivalis

Banco Sabadell confirmed its plan during a Tuesday press conference led by outgoing CEO Cesar Gonzalez-Bueno. He said the project aims to make transactions more efficient and secure, adding that the bank sees value in joining a wider European effort.

The commitment will continue after Marc Armengol takes over as CEO later this year. Bankinter may follow, while other Spanish institutions are assessing the consortium model instead of building separate stablecoin projects.

Qivalis Builds Wider European Network

Qivalis was incorporated in Amsterdam in December 2025 by nine European banks. BNP Paribas joined that same month, while BBVA later became the 12th member after dropping its standalone stablecoin plan.

The current group includes Banca Sella, BBVA, BNP Paribas, CaixaBank, Danske Bank, DekaBank, DZ BANK, ING, KBC, Raiffeisen Bank International, SEB, and UniCredit.

Jan-Oliver Sell, the former Coinbase Germany CEO, leads the consortium. Sir Howard Davies, former NatWest Group and FSA chairman, chairs the supervisory board. Fireblocks will provide the technical infrastructure for token issuance.

Euro Stablecoins Target Market Gap

Qivalis is entering a market still dominated by dollar stablecoins. USDT holds about $189 billion in market value, while USDC stands near $78 billion. Euro stablecoins remain below 1 percent of the $305 billion global market.

Circle’s EURC sits in the low-to-mid $400 million range, while Société Générale’s EURCV is around $124 million. Sell has argued that the euro represents about 20 percent to 25 percent of global fiat financial flows but only around 0.2 percent of stablecoin flows.

The planned token will be backed 1:1 by euros. At least 40% of reserves will sit in bank deposits, while the rest will be held in short-term euro-area sovereign bonds. The project also plans 24/7 redemption.

Qivalis is applying for an Electronic Money Institution license from the Dutch central bank under MiCA. The process could take six to nine months. With the ECB’s digital euro not expected before 2029, Qivalis may gain a multi-year opening to build euro liquidity on-chain.

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