Banks Like JP Morgan Are Secretly Building A New Stablecoin!? 🧐

Welcome to PayFi Weekly.

Let’s start with addressing the ‘bear’ in the room…

Last Friday, over $20 billion was liquidated from the crypto market before you could say TGIF.

And if that wasn’t enough to panic, Binance charts began showing many altcoins crashing to ZERO.

We say ‘showing’ because it was a technical glitch. So, some solace there.

On the bright side, the market recovered the next day (albeit not to their full glory). So, is this the beginning of a healthy recovery or a precursor to a long crypto winter? We’ll let you be the judge of that.

In the payments world, however, the charts are greener than ever. And if everything goes well, this positivity could bleed into other assets.

Let’s dig in!

💱 Stablecoin Snapshot

Despite the major liquidation, no major stablecoin has gone bust (except for USDe, which briefly fell to 65 cents before reclaiming $1). While brutal, this was a strong test for the current stablecoin payments infra, and it's safe to say that we passed the test with flying colors.

About USDe Depeg

Currently, the stablecoin market cap is holding strong above $300 billion. USD-pegged assets continue to dominate, while non-USD stablecoins (mainly euro-based) hold around $1.16 billion, hinting at early but steady diversification.

On trading floors, stablecoins now account for 98.15% of total crypto market volume, totaling $203.22 billion in daily turnover. Tether (USDT) and USDC alone hold $179.85B and $75.47B, acting as the liquidity anchors of the ecosystem.

And most surprising is that stablecoins now represent over 1% of the U.S. M2 money supply, blending crypto and traditional finance like never before. JPMorgan even projects they could fuel $1.4 trillion in additional USD demand by 2027, making stablecoins a quiet force shaping monetary policy and global dollar dominance.

⚖️ Regulation

🇪🇺 The EU is considering sanctions on A7A5, a ruble-backed stablecoin, banning EU entities from dealings to counter Russia’s crypto-based evasion. 👉 Read more

🇯🇵 Japan’s prime minister seeks to boost the crypto economy by refining blockchain regulations to attract investment and innovation. 👉 Read more

🇫🇷 France’s central bank and ESMA push for stricter stablecoin rules under MiCA to strengthen oversight and stability in EU markets. 👉 Read more

🌍 Adoption

💹 Morgan Stanley is removing previous restrictions on crypto funds for wealth-management clients to expand access. 👉 Read more

🏦 Major banks are exploring launching a stablecoin pegged to G7 currencies as part of strategic innovation plans. 👉 Read more

🧑‍💼 Minipay is courting freelancers by offering stablecoin-backed payments for fast, borderless transactions. 👉 Read more

🏴󠁧󠁢󠁥󠁮󠁧󠁿 The Bank of England plans carve-outs in stablecoin regulations after pushback from industry participants. 👉 Read more

🛠 Tech & Partnerships

🔵 Coinbase teams up with Mastercard and BVNK to issue a stablecoin, expanding payments & crypto integration. 👉 Read more

🟣 Solana's DeFi exchange Jupiter is launching new features to boost liquidity and user growth. 👉 Read more

🌍 Everything Else

⭕ Circle is enabling machine-to-machine micropayments and incubating AI-crypto projects. 👉 Read more

💸 Jack Dorsey seeks tax exemption for Bitcoin transactions to ease adoption and reduce burdens. 👉 Read more

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