21 Nov, 2025

Why Stablecoins Are the New Backbone of Global Payments

When a payroll lands in employee wallets in seconds, or a sale clears across three continents with a single click, chances are, a stablecoin powered that transaction.If you’re not already accepting stablecoins, your competitors (and your customers) are moving ahead. Here’s why more platforms and merchants are making stablecoins part of their core payment strategy.What are Stablecoins?First, let’s understand what stablecoins are. Stablecoins are digital tokens designed to hold a steady value by being pegged to a traditional currency like the US dollar or euro. Unlike volatile cryptocurrencies such as Bitcoin or altcoins, stablecoins are backed by real-world assets, making them predictable and practical for business use. They run on public blockchains, can be sent or received by anyone with a compatible wallet, and settle in real time anywhere in the world, 24/7.From Niche Asset to Mainstream UtilityStablecoins were once viewed as a side project of crypto: a bridge between digital assets and traditional finance. This perception has shifted dramatically. As of 2025, the total supply has increased from $2.5 billion in 2019 to over $270 billion today. Now, what explains this meteoric growth?The answer lies in the friction businesses face with legacy payment systems: delays in cross-border settlement, hidden fees, lack of transparency, and reliance on intermediaries, which stablecoins solve all. Stablecoins offer a direct, programmable, and globally accessible digital currency that behaves like cash, but with the speed and reach of the internet.Why Businesses Are Embracing Stablecoins▪ Instant Settlement, Always-On CommerceTraditional international payments can take days to clear, often passing through multiple banks before reaching their destination. With stablecoins, settlement can happen within minutes, sometimes seconds, regardless of banking hours or national borders. This creates opportunities for companies to run real-time payrolls, enable just-in-time supply chain payments, or settle e-commerce transactions globally without waiting for wires to clear.▪ Predictability and Price StabilityUnlike most cryptocurrencies, stablecoins are pegged to fiat currencies such as the US dollar or euro, offering price predictability. This is why they are so attractive for merchants and platforms who need to reconcile payments, manage cash flow, and minimize exposure to volatility.New Markets, New CustomersIn countries facing inflation, capital controls, or limited access to banking, stablecoins are already becoming the default digital dollar. For example, in Latin America, 43.6% of users engage with crypto for daily spending or cross-border payments. These are families paying bills, freelancers getting paid, and businesses transacting across borders, no bank required.Lower Costs and Increased MarginsStablecoins can reduce transaction fees significantly, particularly for B2B payments. For example, sending USDC on Polygon can cost less than $0.10 per transaction, compared to 1.70-3.5% for card-based payments. For high-frequency or low-margin businesses, these savings are both material and repeatable.Programmable, Automated SettlementBecause stablecoins exist on open, programmable blockchains, companies can integrate payment logic directly into their platforms. This means that revenue sharing, instant settlement, compliance checks, and even loyalty rewards can be automated at the point of payment. No more batch processing or reconciliation delays.Regulation: The Missing Link is Now in PlaceFor years, regulatory uncertainty was the main barrier to stablecoin adoption. This is changing rapidly. In the U.S., two new landmark laws now provide a clear path forward: the GENIUS Act and the Clarity for Payment Stablecoins Act, both signed in 2025. Together, these laws establish a comprehensive federal framework for stablecoins, requiring 1:1 asset backing, mandatory audits, and ongoing disclosures. European businesses benefit from the Financial Services & Markets Act (UK, 2023), which classifies fiat-backed stablecoins as regulated payment instruments, while in Asia, Japan’s Stablecoin Law (2023) recognizes stablecoins as legal electronic means of payment. These reforms make stablecoin adoption practical and secure across major markets.These regulatory frameworks now offer national and regional clarity, removing the barriers that once held back institutional adoption. For B2B partners, this means stablecoins are not only legally viable, but your business does not need to build a dedicated compliance team; specialized providers like NAKA can manage the legal, and regulatory requirements on your behalf.Real-World Acceptance: From the Internet to the High StreetIn 2025, over 67% of vendors in advanced economies and 92% in emerging markets report that they are ready to accept stablecoins as payment. Major companies such as Walmart and Amazon are piloting stablecoin settlement for suppliers and payroll, while fintech giants like Visa, and Mastercard have launched stablecoin settlement rails.At the local level, cities like Lugano, Switzerland, or San Salvador, El Salvador have become living laboratories: hundreds of shops, restaurants, and service providers accept stablecoins for daily payments, and businesses can settle instantly in stablecoins or local fiat.Why the Power of Stablecoins Matters NowThe next wave of innovation will focus on seamless user experiences, deeper regulatory integration, and multi-currency settlement where stablecoins are simply part of “how business gets done.”For businesses, this is a chance to reach untapped markets, operate with unprecedented efficiency, and deliver payment experiences that match the expectations of a digital-first world.

19 Nov, 2025

Mastercard Picks Polygon to Bring Verified Usernames to Self-Custody Wallets

Mastercard (MA) has chosen Polygon to power a new system that lets people send crypto to verified usernames instead of long wallet addresses, the companies said on Tuesday.Mastercard Crypto Credential standardizes how blockchain addresses are verified by enabling human-readable aliases that correspond to a verified individual, the company said in a an emailed press release.Mastercard will use Mercuryo, crypto payment API firm, to support verified username transfers for self-custody wallets, and Polygon’s blockchain will tie issued aliases to users’ onchain identity.The approach, which mirrors how people send money through apps that use usernames instead of bank details, involves issuing users a unique name they can connect to their wallet. They can also request a token on Polygon that shows their wallet supports verified transfers and helps apps route credential-based transactions.The long, complex nature of crypto wallet addresses can prove a barrier to entry for new users, which companies have attempted to tackle with more user-friendly options like QR codes or services that replace complex strings with simple, readable names or even phone numbers."By streamlining wallet addresses and adding meaningful verification, Mastercard Crypto Credential is building trust in digital token transfers," said Raj Dhamodharan, Executive Vice President of Blockchain & Digital Assets at Mastercard. "Bringing Mercuryo and Polygon’s capabilities together with our infrastructure makes digital assets more accessible and reinforces Mastercard’s commitment to delivering secure, intuitive, and scalable blockchain experiences for consumers worldwide."Polygon’s network will process these transfers at speed and with low fees. Mastercard said the network can handle a high throughput capable of supporting real-world payments at scale.

17 Nov, 2025

Japan Moves to Reclassify Crypto and Adopt Major Tax Relief

Japan's Financial Services Agency has finalized plans to reclassify certain cryptocurrencies as financial products under the Financial Instruments and Exchange Act, while also seeking to cut taxes on crypto income.According to a report from Asahi, the reclassification will subject 105 cryptocurrencies, including bitcoin and ether, to new disclosure requirements. Exchanges listing these crypto assets will be required to disclose their key characteristics such as whether the token has an issuer, the underlying blockchain technology and price volatility.The FSA also plans to introduce preventive measures on insider trading, potentially prohibiting issuers or exchange executives from trading crypto assets based on non-public information, including exchange listing schedules.These changes are expected to be submitted as amendments to Japan's financial laws during the ordinary Diet session in 2026, according to the report.Tax cutAs these 105 crypto assets move toward being treated as traditional financial products, Japanese authorities are seeking to lower the tax rate on crypto income to match that of stock investments — from a maximum of 55% to 20%. The tax reform is expected to be reviewed in the coming fiscal year, Asahi reported.Japan, which assumed a rather cautious stance on digital assets after Mt. Gox collapsed, has begun actively reforming its financial system to reinvent itself as a Web3 hub. Last month, the FSA was reportedly looking into ways to allow local banks to trade cryptocurrencies like stocks and government bonds. It has also been pushing a yen-pegged stablecoin initiative, with the country's first local stablecoin JPYC going live on Oct. 27.

14 Nov, 2025

Lessons from Argentina: Stablecoin Salaries for European Businesses

It appears that stablecoin salaries are gaining traction among businesses globally. With inflation wreaking havoc around the globe, more and more companies are looking at stablecoins to keep their payroll running smoothly. Argentina's recent economic crisis has shown us just how effective these digital currencies can be in preserving employees' purchasing power and improving transactions. So, let's dig into how European companies can take a page from Argentina's book and use stablecoins to make their payroll systems more efficient while dealing with taxes and regulations.What Are Stablecoins and Why Use Them for Payroll?Stablecoins, which are basically cryptocurrencies pegged to stable fiat currencies, have been gaining traction as a payroll solution, especially where inflation is running rampant. They offer a stable medium of exchange, which can help mitigate the nasty effects of currency devaluation. In Argentina, many startups and companies adopted stablecoin salaries to protect their employees from the rapid decline of the peso. Now, European firms are looking at the same approach to enhance their payroll processes.What We Learned from Argentina’s Inflation CrisisArgentina's hyperinflation, hitting a staggering 161% in 2023, forced many companies to switch to paying stablecoin salaries. This was primarily to protect employees from the rapid depreciation of the Argentine peso. By paying in stablecoins like USDC or USDT, businesses ensured that their workers maintained their purchasing power despite the economic chaos. This experience serves as a crucial lesson for Europe, where inflationary pressures may also threaten the stability of local currencies.The Perks of Using Stablecoins for Payroll in EuropeThere are some clear advantages to using stablecoins for payroll in Europe. For starters, stablecoins can facilitate faster and cheaper transactions than traditional banking methods, especially for cross-border payments. They can also promote financial inclusion, giving access to payroll services to those who are often left out of traditional banking. As European companies explore crypto payroll compliance, they can use these advantages to improve their operations and keep their employees happy.Keeping an Eye on Regulations for Crypto Payroll ComplianceOf course, navigating the regulatory maze is a must for businesses thinking about stablecoin salaries. The European Union is developing frameworks to regulate cryptocurrencies, including stablecoins, through initiatives like the Markets in Crypto-Assets Regulation (MiCA). Compliance is key to avoid legal headaches and ensure transparency in payroll processes. Companies should stay informed and adjust their strategies as regulations change.The Risks of Relying on Stablecoins for PayrollWhile stablecoins do come with advantages, there are also risks. One major concern is the potential for de-pegging, where stablecoins lose value relative to their underlying assets during market volatility. This can complicate payroll logistics and possibly leave employees with reduced compensation.The regulatory landscape for stablecoins remains fragmented, making compliance tricky for businesses operating across borders. Plus, security vulnerabilities, like hacks and compromised wallets, are issues organizations need to tackle to protect their employees' earnings.Summary: The Future of Crypto Payroll in EuropeArgentina's experience shows that stablecoin salaries can be a useful tool to protect workers from currency devaluation and make payments more efficient. However, European companies looking to adopt stablecoin salaries should learn from these lessons and balance innovation with regulatory oversight and sound economic policy. By navigating the complexities of crypto payroll compliance, they can leverage stablecoins to improve their payroll systems while securing their employees' financial well-being.The future of crypto payroll in Europe looks bright, but it will take careful thought and consideration of what we learned from Argentina. Embracing stablecoins could not only improve payroll processes but also strengthen the financial ecosystem amid economic uncertainty.

12 Nov, 2025

Standard Chartered, DCS Partner to Support Stablecoin Credit Card in Singapore

Standard Chartered has announced a partnership with DCS Card Centre to support DeCard, a credit card that enables stablecoin spending for real-world transactions.Under the partnership, Standard Chartered will provide comprehensive transaction banking and financial markets services to support DeCard's Singapore user base. These include cardholder top-up processing, account management, as well as fiat and stablecoin settlements, according to the bank's Tuesday statement. The collaboration, launched first in Singapore, is expected to expand into other key markets, the bank said. Specifically, Standard Chartered's virtual account and API connectivity will let DCS identify and reconcile DeCard cardholder payments across channels, according to the statement."[Standard Chartered's] banking expertise and robust infrastructure enable us to bring secure, transparent, and efficient stablecoin payments to the mainstream, setting a new benchmark for how digital assets can be used responsibly in everyday life," said Joan Han, chief commercial officer at DCS.DeCard, powered by DCS, enables users to spend stablecoins like traditional credit cards while managing balances and repayments through its D-Vault account system. DCS, formerly known as Diners Club Singapore, has more than 50 years of card-issuing experience and has transitioned into a global payments provider focused on Web3 innovation.Singapore has positioned itself as a hub for regulated crypto assets and has implemented a regulatory framework for stablecoins. The Monetary Authority of Singapore classifies stablecoins as "digital payment tokens" under the Payment Services Act, and has introduced a separate framework in August 2023 for single-currency stablecoins pegged to the Singapore dollar or major currencies like the U.S. dollar and euro.Since then, several crypto firms have rolled out stablecoin payment services in the country. For example, OKX launched OKX Pay in Singapore in September 2025, enabling users to pay with USDC or USDT stablecoins at participating GrabPay merchants.

10 Nov, 2025

Bank of England Opens Consultation on ‘Systemic’ GBP Stablecoin Rules With Temporary Holding Limits

The Bank of England has launched a consultation on its proposed regulatory regime for sterling-denominated "systemic" stablecoins and a potential digital pound.Published on Monday, the consultation paper outlines how such stablecoins could operate alongside existing payment systems for both retail and wholesale use. The move builds on reports of the proposal last week and feedback to a 2023 discussion paper, reflecting the bank's aim to modernize payments while maintaining public trust in money, according to a statement.Under the proposals, the regime would apply only to sterling-denominated stablecoins designated as systemic by HM Treasury and used at scale in UK payments — with the Bank of England overseeing prudential and financial stability risks and the Financial Conduct Authority supervising conduct and consumer protection.It does not apply to non-sterling or existing stablecoins used mainly for buying and selling crypto assets, such as USDT and USDC, which will continue to be supervised by the FCA.The bank said the framework is intended to be "robust and future-proof," aligning with broader strategies to modernize UK retail payments.Backing rules and temporary holding limitsA key feature of the consultation is the approach to backing assets. Systemic stablecoin issuers would be allowed to hold up to 60% of reserves in short-term UK government debt, with the remaining 40% placed in unremunerated accounts at the Bank of England to support redemption and public confidence, the bank said.Issuers deemed systemic at launch or transitioning from the FCA regime could initially hold up to 95% of backing assets in short-term government debt to support early-stage viability. The central bank is also considering central bank liquidity arrangements to provide a backstop during periods of market stress.To manage risks from rapid outflows of bank deposits into digital money, the Bank of England has also proposed temporary holding limits of £20,000 ($26,350) per stablecoin for individuals and £10 million ($13.2 million) for businesses, with exemptions for the largest firms to hold more if required. These limits would be lifted once the transition no longer poses risks to credit provision, the bank said, and would not apply to stablecoins used for wholesale settlement within the Digital Securities Sandbox operated by the Bank of England and the FCA."Today's proposals mark a pivotal step towards implementing the UK's stablecoin regime next year. Our objective remains to support innovation and build trust in this emerging form of money," Bank of England Deputy Governor for Financial Stability Sarah Breeden said. "We've listened carefully to feedback and amended our proposals for achieving this, including on how stablecoin issuers interact with the Bank of England. These proposals are fit for a future where stablecoins play a meaningful role in payments, giving the industry the clarity it needs to plan with confidence." The consultation runs until Feb. 10, 2026, with the Bank of England and the FCA set to publish a joint approach paper later next year to clarify how the rules will work in practice and guide a smooth transition.

07 Nov, 2025

The Stablecoin Depegging Crisis: Who’s Exposed, Who Survives?

A storm of trust and transparency is sweeping across the crypto world.“When everything that could be borrowed with USDX was borrowed.”This warning post on X (formerly Twitter) on November 6 marked the start of a long-brewing stablecoin crisis finally breaking to the surface.On DeFi lending protocols such as Euler, nearly all assets that could be borrowed against USDX and sUSDX were drained. Borrowing rates in some pools spiked past 800% APY.Meanwhile, on-chain addresses linked directly to Stables Labs founder Flex Yang began aggressively borrowing other stablecoins and transferring them to exchanges — an alarming move that triggered widespread market panic.The USDX Depeg: A Real-Time BreakdownThe USDX depegging event served as a mirror, reflecting the fragility of decentralized stablecoins under extreme market stress.▪ USDX, issued by usdx.money, completed a $45 million funding round at a $275 million valuation late last year.▪ Like Ethena’s USDe, USDX adopts a delta-neutral hedging strategy, but unlike Ethena, it also uses altcoins as part of its trading strategy — amplifying returns, but also risk.▪ Before the meltdown, addresses directly linked to Stables Labs’ founder began showing unusual on-chain behavior: ignoring soaring borrow rates, these wallets drained all assets available for borrowing against USDX and sUSDX across multiple platforms.Notably, one address beginning with 0x50de started accumulating large amounts of USDX and sUSDX in late October and proceeded to borrow USDT, USDC, and USD1 from Euler, Lista DAO, and Silo, transferring nearly all funds to Binance shortly after borrowing.When it ran out of collateral to leverage, the address swapped USDX for USDT on PancakeSwap and again moved the proceeds to exchanges. This fire-sale exodus raised serious concerns about the true reserve backing of USDX.The Cautionary Tale of USDeUSDX isn’t the first synthetic stablecoin to face depegging risk. On October 11, USDe — the world’s third-largest stablecoin — plummeted to $0.65, losing roughly 34% of its peg.That day, the crypto market experienced an “epic crash.”Bitcoin tumbled from $117,000 to $105,900, a single-day drop of 13.2%.▪ On Uniswap, liquidity in the USDe–USDT pool collapsed to $3.2 million, down 89% from pre-event levels. A sell order of 100,000 USDe experienced 25% slippage, filling at $0.62 instead of $0.70.▪ Unlike USDX, USDe quickly rebounded, recovering to $0.98 within hours.▪ The recovery was fueled by Ethena Labs’ third-party reserve attestation, confirming a collateralization ratio above 120%, backed by $66 million in excess collateral.▪ Most importantly, USDe’s redemption mechanism remained fully operational — users could redeem ETH and BTC collateral anytime, anchoring market confidence during the crisis.The Security Spectrum of StablecoinsComparing USDX, USDe, and traditional fiat-backed stablecoins like USDT and USDC reveals a clear hierarchy of safety.The takeaway: transparency and collateral quality directly determine stability.USDX’s opaque structure and questionable backing made it vulnerable, while USDe’s transparency and robust reserves allowed for a swift recovery.Structural Risks in DeFiThe USDX and USDe depegging episodes exposed deeper structural flaws within the DeFi ecosystem.Delta-neutral stablecoins are not truly stablecoins in the traditional sense — they function more like structured financial derivatives of a protocol rather than independent monetary units.Key issues include:▪ High-risk strategies & opaque executionUSDX’s complex delta-neutral model extended into altcoins, heightening exposure. Most of these strategies run off-chain on centralized exchanges, turning the project into a black box with no verifiable transparency.▪ Inter-protocol leverage and recursive collateralizationDeFi protocols are deeply interwoven. Some synthetic assets are built on top of themselves, creating recursive leverage loops. For example, crvUSD can use a stablecoin derivative of crvUSD as its own collateral to mint more crvUSD — making it nearly impossible to trace how much leverage exists even when all data is on-chain.Why Large Stablecoins Remain More ResilientGiven USDX’s collapse and USDe’s brief depeg, investors are asking:Why do giants like USDT and USDC remain stable?▪ Scale and institutional adoptionAccording to CertiK’s 2025 Skynet Digital Asset Treasury Report, publicly listed companies now hold over $130 billion in digital assets.Institutional investors prefer audited, custody-backed stablecoins with regulatory compliance and transparent disclosures — a moat that protects USDT and USDC.▪ Regulatory alignment and disclosureCircle, issuer of USDC, proactively engages with regulators and regularly publishes reserve breakdowns.In contrast, USDX and similar projects lack third-party audits or reserve proofs, eroding market trust.▪ Collateral quality and redemption mechanismsUSDT and USDC are backed by fiat, cash equivalents, and short-term U.S. Treasuries — highly liquid, low-volatility assets.Synthetic stablecoins like USDX rely on crypto-collateral and off-chain hedging, which can collapse under market stress.When volatility spikes, capital naturally migrates toward safety — from high-risk synthetic coins to fiat-backed stalwarts like USDT and USDC.Even after Bybit’s recent hack, over $4 billion in institutional inflows entered the market, reaffirming long-term confidence in quality crypto assets.In the end, while DeFi innovation continues to push boundaries, one truth remains unchanged: In finance — whether on-chain or off — security and transparency are the ultimate foundations of trust.

05 Nov, 2025

Ripple Partners with Mastercard, WebBank, Gemini to Enable Stablecoin Settlement with RLUSD

Ripple has announced a collaboration with Mastercard (NYSE:MA) , WebBank, and Gemini (NASDAQ:GEMI). Together they’ll explore the use of Ripple USD (RLUSD) on the XRPL, a public blockchain built for efficient payments, in order support stablecoin settlement of fiat card transactions.The initiative is supposed to enable RLUSD, operating on the XRPL, to facilitate blockchain-powered settlement processes between Mastercard and WebBank, which is currently the issuer of the Gemini Credit Card.Sherri Haymond, Global Head of Digital Commercialization at Mastercard said that they are guided by their commitment to consumer choice and a principled approach to stablecoins—one that “emphasizes strong consumer protections, a level playing field, and regulatory compliance—they’re enabling settlement today while exploring how stablecoins can support future use cases.”After it has been implemented, this will mark one of the “first” collaborations where a regulated U.S. bank “settles traditional card transactions using a regulated stablecoin on a public blockchain.”This effort expands on Ripple’s work with Gemini and WebBank on the Gemini Credit Card, which launched “an XRP edition and serves as a model for how digital assets can be integrated into traditional payment programs.”Dan Chen, Chief Financial Officer at Gemini said that in this next phase of the collaboration, they’re demonstrating “how stablecoin settlement can be applied to an active card program, connecting blockchain innovation to real consumer payments.”With low costs, fast processing, and reliable performance, the XRPL offers a foundation for digital payments.XRP, the digital currency that powers the XRPL, continues to play a key role, helping “keep the network secure and enabling efficient transactions as newer assets like RLUSD expand its use.”RLUSD is a U.S. dollar–backed stablecoin issued “under the New York Department of Financial Services (NYDFS) Trust Company Charter and backed by cash and cash-equivalent reserves.”Since launching in 2024, RLUSD has grown “to over $1 billion in circulation, supported by adoption across DeFi platforms, Ripple’s cross-border payment solution, and institutional partners.”In the coming ahead, the partners will reportedly carry out initial RLUSD onboarding on the XRPL, which is said to be subject to obtaining the required regulatory approvals, and start integration planning “within existing Mastercard and WebBank settlement processes.”

03 Nov, 2025

Monthly Ethereum Stablecoin Volume Hits Record $2.8 Trillion in October

The total monthly stablecoin volume on Ethereum soared to hit a new all-time high in October, as traders increasingly sought yield opportunities during the crypto market slowdown.According to The Block's data, stablecoins on Ethereum saw a total of $2.82 trillion in onchain volume in October, surpassing the previous all-time high of $1.94 trillion set in September. This marks a 45% monthly growth.Circle's USDC took the lead with $1.62 trillion in monthly volume, followed by USDT, which had a volume of $895.5 billion last month. Both stablecoins saw an increase in volume from the previous month.Meanwhile, MakerDAO's DAI stablecoin ranked third with $136 billion, down from $141.2 billion in September and significantly lower than May's $470.7 billion."Stablecoins have been one of the hottest sectors over the past couple of months following the Circle IPO and the passage of the Genius Act," said Min Jung, research associate at Presto Research. "Yield farming, especially around 'liquid yield tokens,' has been highly active, and new stablecoins with innovative concepts are attracting users seeking yield."Stablecoin volume rose last month as the crypto market retreated from its record-setting bull run toward more modest pricing. Bitcoin is down 11.5% in the past month to $108,229, while Ethereum is down 16.4% to $3,754.Kronos Research CIO Vincent Liu noted that stablecoin volume surge indicates that traders were actively managing liquidity, preparing to buy price dips amid ongoing profit-taking in major cryptocurrencies."They're staging capital to rotate between emerging narratives, using stablecoins as a hedge and a yield-generating tool until deployment," Liu said.The surge in volume positioned stablecoin issuers as the dominant revenue generators among crypto protocols, data shows.Stablecoin issuers consistently managed around 65% to 70% of total daily revenue across major crypto protocol categories throughout October, beating others including lending platforms, decentralized exchanges, collateralized debt positions, and blockchain infrastructure.Major issuers Tether and Circle base their earnings on the assets that back their stablecoins. They hold user deposits in relatively low-risk instruments like U.S. Treasuries and keep the accrued interest, making yield on reserves their core profit source."[October's] volume underscores a maturing crypto market, where stablecoin activity has grown for non-speculative use cases like payments and cross-border transactions," said Nick Ruck, director at LVRG Research.