stablecoins

Grayscale's research director Zach Pandl stated that in the context of rising inflation in the United States, the Federal Reserve may maintain a high interest rate policy for a long time, which will have three core impacts on the cryptocurrency market. He believes that as the U.S. CPI approaches 4%, the new Federal Reserve Chairman Kevin Warsh has almost no room for interest rate cuts, and the market currently expects the first rate cut to be delayed until September 2027. Grayscale pointed out that long-term high interest rates will put pressure on "currency devaluation trades" such as Bitcoin. Since Bitcoin, like gold, is a non-yielding asset, higher real interest rates will increase the opportunity cost of holding dollar-denominated assets. However, it remains optimistic about Bitcoin's long-term prospects and believes that regulatory benefits such as the CLARITY Act can partially offset the related pressures. In addition, it believes that a high interest rate environment will accelerate the tokenization of fixed income assets. Currently, the yields on dollar-denominated fixed income products are higher than those of most DeFi yields; for example, the USDC lending rate on Aave is about 3.6%, while the yield on short-term corporate bonds is about 4.5%. Grayscale also stated that stablecoin issuers will benefit from high interest rates. Since the GENIUS Act prohibits stablecoins from paying interest to users, issuers can retain the income from reserve assets. It estimates that for every 25 basis point increase in short-term rates, Circle's revenue will increase by approximately $190 million.

The U.S. Senate Banking Committee recently advanced the Digital Asset Market CLARITY Act with a bipartisan vote of 15 to 9, marking a step forward in the regulatory framework for the U.S. crypto market. Research institution HashKey Group pointed out that if the bill is enacted, it will significantly enhance compliance certainty for institutional investors participating in the crypto market and strengthen the core position of the U.S. dollar stablecoin in the global digital financial system.Analysts believe that a clearer U.S. regulatory framework will encourage banks, asset management institutions, and sovereign funds to more widely adopt compliant stablecoins for cross-border payments, settlements, and fund management, especially with more evident demand in the Asian market. However, at the same time, the U.S. restrictions on "yield-bearing stablecoins" may create structural spillover effects. HashKey researcher Tim Sun stated that if the U.S. strictly limits the stablecoin yield mechanisms, capital may flow to the Asian market or indirectly seek higher yields through "wrapped products."The report noted that the Asian market (such as Hong Kong and Singapore) features active cross-border trade, frequent capital flows, and local currencies that are more susceptible to external shocks. In an environment of high U.S. dollar financing costs, U.S. dollar stablecoins will become an important liquidity tool. However, the analysis also emphasized that this competition is not a zero-sum game. As the CLARITY Act progresses, the global competitive focus may shift from "trading platforms and token issuance" to "stablecoin liquidity channels and control over financial infrastructure," meaning who can more efficiently connect U.S. dollar liquidity, regional assets, and compliant financial channels.

Democratic Senator Jack Reed stated at the CLARITY bill hearing that Iran is using cryptocurrency to procure sensitive goods, and the drones they are acquiring are wreaking havoc in the Persian Gulf. Moreover, most of this funding has turned into stablecoins. If we truly support our military, we should cut off their (Iran's) funding sources.

According to The Block, Anchorage Digital, a federally chartered crypto bank in the United States, has reached a partnership with Grupo Salinas, controlled by Mexican billionaire Ricardo Salinas Pliego, to provide a USD stablecoin payment rail to optimize cross-border USD settlements.Grupo Salinas will integrate Anchorage's stablecoin infrastructure into its cross-border payment processes through its crypto business Coinpro, aiming to shorten settlement cycles and introduce programmable, real-time settlement capabilities.Grupo Salinas also controls Banco Azteca, and Salinas himself has long supported Bitcoin. Anchorage Digital CEO Nathan McCauley stated that stablecoins are evolving from trading tools into core financial infrastructure. Previously, Western Union also announced that it would launch a USD stablecoin issued by Anchorage Digital on Solana.

According to Decrypt, Bank of England Executive Director Sasha Mills stated that the Bank of England views stablecoins as "a new form of currency" and will not "pick winners" between tokenized deposits and stablecoins. Mills mentioned that the Bank of England will open applications for "systemic stablecoins" by the end of the year, which are widely used for payments and may pose risks to financial stability, and will be regulated by the central bank.Matthew Long, Director of Payments and Digital Assets at the Financial Conduct Authority, stated that other stablecoins are regulated by the FCA, and there is still room for pound-denominated stablecoins to play a role. Mills also pointed out that 99% of stablecoins globally are dollar-denominated and do not comply with the U.S. GENIUS Act, and the UK is aligned with the U.S. on the timeline.

Since BIT (formerly Matrixport) launched its U.S. stock business in February 2026, the user asset scale (AUM) has exceeded $200 million. According to the platform's records over the past 12 weeks, 98% of the capital inflow comes from stablecoin deposits (without card deposits).BIT builds a compliant path through licensed brokers, eliminating the cumbersome process of opening bank cards, allowing users to open a U.S. stock account in just 5 minutes and buy real U.S. stocks on the same day.Elio Cui, head of BIT's brokerage business, stated, "AI has made U.S. stocks the strongest asset for global wealth effects once again. Thanks to over 7 years of institutional service experience and the accumulation of compliance licenses, BIT has successfully bridged the gap between digital assets and traditional finance, helping investors quickly seize investment opportunities. Global asset allocation and capital deployment capabilities are becoming a fundamental skill for every investor. Those lacking this capability may be excluded from core asset opportunities."

Crypto journalist Eleanor Terrett disclosed on the X platform that since last Friday, members of the American Bankers Association have sent over 8,000 letters to Senate offices urging lawmakers to amend the stablecoin revenue compromise proposal. Sources say this does not include additional phone lobbying activities.

On May 12, the U.S. Senate Banking Committee released the latest 309-page draft of the CLARITY Act, but Section 404 of the draft stipulates that it prohibits rewards "solely for holding" stablecoins.Specifically, no regulated entity may directly or indirectly pay any form of interest or yield (whether cash, tokens, or other consideration) to a restricted payee solely because the restricted payee holds its stablecoins, or pay stablecoin balance rewards in a manner economically or functionally equivalent to paying interest or yield on bank deposits.However, the latest draft also stipulates that rewards and incentives for stablecoins based on real activities or transactions are allowed, such as rewards linked to actual transactions, payments, platform activities, liquidity provision, etc.

a16z Crypto published an article explaining the investment logic behind Arc, pointing out that stablecoins have evolved from tools for crypto trading to a core layer of global financial infrastructure, driving the upgrade of blockchain from "application layer finance" to "system-level economic operating systems."The trading volume of stablecoins reached approximately $9 trillion last year, placing them on the same scale as global payment networks like Visa and PayPal. The total supply of US dollar stablecoins has also exceeded $270 billion, with cross-border payments, B2B settlements, and foreign exchange trading becoming the core use cases for stablecoins, gradually making them the "upgrade layer for global capital flows."a16z Crypto stated that the existing blockchain infrastructure is still primarily aimed at crypto-native users and individual developers, lacking native support for large institutional-level demands. The reason for participating in the ecosystem construction related to ARC tokens is mainly due to the gradual on-chain transition of global finance; in the future, only a few public chains will be able to support the "on-chain economic system foundation."

After the U.S. Senate reached a compromise on the issue of stablecoin yields, expectations for the advancement of the cryptocurrency market structure bill have significantly improved. Industry insiders say this progress has "significantly boosted market sentiment," and the Senate Banking Committee may advance the review and vote next week.Previously, the probability of the bill passing was only about 20%–30%, but expectations have now risen to about 60%. However, ethical issues surrounding Donald Trump and his connections to cryptocurrency businesses are still seen as a key obstacle. The bill aims to establish a comprehensive regulatory framework at the federal level for the first time and delineate the regulatory authority between the SEC and CFTC.

According to Bloomberg, ECB President Lagarde stated that even euro-denominated stablecoins pose risks to financial stability and the transmission of monetary policy, questioning the necessity of introducing such tools.She pointed out that while euro stablecoins could lower financing costs in the euro area and enhance the global appeal of the euro, the costs are significant and outweigh short-term benefits. Lagarde emphasized that if the goal is to enhance the international appeal of the euro, stablecoins are not an effective means. She referenced a working paper from the ECB in March, which warned that the widespread adoption of stablecoins would pose significant risks to euro area banks and monetary sovereignty. She stated that Europe's task is not to "replicate tools developed elsewhere" and continues to push for the introduction of a digital euro.