Stablecoin Revolution: When Payments Are No Longer Tied to Banks, How High Is the FinTech Startup Ceiling?

The Federal Reserve is not only exploring stablecoins and AI payments, but is also piloting a new proposal called "Skinny Master Account," which would allow qualified companies to directly access the Fed settlement system, opening new doors for fintech innovation.

Written by: Cobo

Highlight of the week—Stablecoins are shaking the foundations of traditional banks.

• The Federal Reserve's "Skinny Master Account" proposal allows non-bank institutions to directly access the clearing system for the first time. When FinTechs can connect directly to the Fed, the entrepreneurial ceiling is significantly raised. How will this reshape the fintech startup landscape?
• Fintech companies are rapidly entering the stablecoin sector: Wise is preparing a stablecoin wallet for 16 million users; Revolut is building a complete closed loop from custody to issuance in Europe with "dual licenses." As these fintech companies serving tens of millions of users enter the digital asset space, how will ordinary users' interactions with digital assets change?
• When payments are no longer tied to banks, traditional banks' revenues will be eroded, and their deposit base may experience structural outflows. In the face of such changes, what is the future for banks?

Market Overview and Growth Highlights

Total stablecoin market cap reached $308.195b (about $308.2 billions), up $1.016b (about $10.16 billions) week-on-week. In terms of market structure, USDT continues to dominate with a 59.31% share; USDC ranks second with a market cap of $76.027b (about $760.27 billions), accounting for 24.67%.

Blockchain Network Distribution

Top 3 networks by stablecoin market cap:

1. Ethereum: $162.311b (about $1,623.11 billions)
2. Tron: $79.001b (about $790.01 billions)
3. Solana: $14.89b (about $148.9 billions)

Top 3 fastest-growing networks this week:

1. Frax (FRAX): +20.92%
2. Sky Dollar (USDS): +15.44%
3. Circle USYC (USYC): +12.76%

Data from DefiLlama

🎯When startups can connect their backend directly to the Fed—New boundaries for payment innovation from the Fed's "Skinny Master Account" proposal

What new types of financial enterprises will emerge when stablecoin companies are no longer dependent on the banking system? This is not only about payment innovation but also signals the transition of "narrow banks" from theory to reality. Amid the stablecoin wave, how will banks redefine their position after losing payment privileges?

At the inaugural Payments Innovation Conference, Federal Reserve Governor Christopher J. Waller introduced the concept of the "Skinny Master Account"—perhaps the starting point for these questions.

For a long time, direct access to the Federal Reserve's balance sheet was a privilege exclusive to commercial banks. Waller's "Skinny Master Account" proposal envisions regulated non-bank payment companies obtaining a simplified account, allowing participation in Fed settlement without enjoying all the functions and credit backing of banks. The "Skinny Master Account" is a "no privilege" account: non-interest bearing, no overdraft, no discount window, serving only as a clearing channel between institutions and the Fed—the minimal unit of trust.

Payments have always been a byproduct of banking. The 20th-century monetary system was built on fractional reserve banking: banks take deposits, make loans, and create money in the process. Settlement is embedded in banks' balance sheets. Every transfer is essentially a settlement of interbank liabilities. In this structure, moving funds requires being a bank.

The emergence of stablecoins loosened this structure for the first time. Tokens backed 1:1 by high-quality reserve assets and capable of instant settlement allow funds to move across ledgers without relying on bank liabilities. As the "pure form" of digital currency, this also redefines the division of labor in the financial system: custodians safeguard assets, payment companies handle transfers, and lending institutions take on risk.

The Fed's "Skinny Master Account" proposal is an institutional response to this. It provides policy space for the "narrow bank" model—institutions that do not create credit or engage in maturity transformation, but can safely custody and transfer funds, can directly enter the central bank settlement system. To some extent, Waller's proposal recognizes that the space for payment innovation should be left to market-driven institutions and startups, while the Fed focuses on maintaining the stability of money creation and the clearing system.

If the OCC national trust license removed federal legal friction for stablecoin issuers, giving them a unified compliance identity beyond the 50-state Money Transmission Laws (MTL), then the "Skinny Master Account" provides an operational identity—an interface directly connected to the Fed settlement system. For companies like Circle and Paxos, this means they can settle without partner banks, shorten approval cycles, and have a clearer regulatory path. Both developments reduce the "institutional friction" surrounding the commercial banking system.

This will unleash new innovation space for fintech, especially in payments. The old system was top-down—Fed, banks, then non-bank institutions—Fintech could build front-end and compliance tools, but the clearing layer was always constrained by banks, locking innovation "on top of banks." For example, Stripe serves SMEs but still relies on commercial banks for fund settlement. The introduction of the "Skinny Master Account" breaks this structure, allowing non-bank institutions to directly access the Fed clearing system, bypass correspondent banks, and achieve final settlement on the central bank ledger at lower cost and higher efficiency. For the first time, the Fed is architecturally connecting private innovation directly to central bank funds, allowing front-end AI payment protocols and stablecoin reserves to grow natively on secure central bank rails, completely leveling the "top ceiling" of financial innovation.

When non-banks and banks start on the same footing in payment functions, banks' payment revenues will inevitably be eroded. Analysts expect about $1 trillion in deposits to flow to stablecoins from emerging markets over the next three years, with up to $6 trillion lost domestically in the US. Even if only 10% of deposits migrate, it would raise banks' funding costs by 20–30 basis points and significantly compress profits. However, banks still hold scarce institutional privileges—they are the only institutions allowed to fully engage in credit and capital markets. In the future, large commercial banks will shift their focus to lending, underwriting, risk pricing, and custody services. Even as payment functions gradually move off-rail, banks will remain deeply embedded in new settlement networks through their core role in credit creation.

🎯The European Moment for Stablecoins: How MiCA is Reshaping the Regulatory Coordinates of Fintech

So far, the stablecoin story remains centered on the US dollar.

In both regulation and market practice, the US is far ahead, with a unified federal system making it the only market in the world to achieve "nationwide compliance channels + (soon) direct central bank access."

This advantage is not only institutional: the Genius Act established the first federal regulatory framework for dollar-pegged tokens, and the OCC trust license gives Circle, Paxos, and others a clear regulatory identity, freeing them from fragmented state MTLs. More importantly, the Fed's "Skinny Master Account" proposal, once effective, will allow qualified non-bank institutions to directly access the clearing network, raising the ceiling for private fintech innovation.

The result is clear: 99% of stablecoins globally are denominated in US dollars. Regulatory certainty is becoming the core moat of the US stablecoin ecosystem and the starting line for other regions.

Now, the EU is catching up, most visibly through the successive approval of compliance licenses for multiple institutions. Since the Markets in Crypto-Assets Regulation (MiCA) officially took effect at the end of 2024, many fintech companies have begun applying for new compliance licenses to adapt to the unified EU regulatory system.

MiCA requires the previously fragmented VASP (Virtual Asset Service Provider) system in member states to be converted to CASP (Crypto Asset Service Provider), bringing all crypto business under unified authorization.

Its regulatory structure is two-tiered:

• The CASP license allows companies to legally provide and promote crypto asset services across the EU, including custody, trading, order execution, and advisory services;
• The EMI license (Electronic Money Institution) clarifies requirements for the issuance, reserve, and governance of e-money and stablecoins.

For companies seeking a "custody-to-issuance" closed loop in Europe, dual licenses (CASP + EMI) are becoming the new entry threshold. Blockchain infrastructure company Plasma is simultaneously applying for CASP and EMI licenses under MiCA, aiming to build a "full-license payment stack" and, through the acquisition of an Italian VASP entity, construct a three-tier compliance path from VASP to CASP to EMI, providing a stablecoin-based clearing system for cross-border settlement and corporate accounts. Another representative company, Revolut, is taking a more bank-like approach: building on its Lithuanian EMI license, it has obtained a MiCA license from Cyprus regulators, allowing it to offer crypto trading, custody, and stablecoin issuance services in the EEA. According to sources, Revolut is studying a 1:1 pegged stablecoin solution, possibly launching as early as 2026, becoming the first major digital bank to issue a stablecoin under the unified EU regulatory framework. As a fintech company valued at $45 billion and serving about 65 million users, this clear compliance path provides a practical model for European fintechs to innovate within the regulatory system.

Regulatory Compliance

🏛️EU Supports Crypto Stablecoins, Rejects Central Bank Warnings

Key Points

• On October 10, the European Commission stated that despite urgent warnings from the European Central Bank (ECB) about financial stability risks, it would not impose additional restrictions on stablecoin companies, marking a major victory for leading issuers like Circle;
• The core controversy is whether stablecoin companies can treat tokens issued within the EU as interchangeable with those held outside the EU—i.e., the "multiple issuance" model. The European Systemic Risk Board had warned this could lead to a run on reserves held within the EU;
• The European Commission believes "MiCA provides a strong and proportionate framework to address the risks posed by stablecoins," responding to a request from six crypto industry associations in a letter to EU Commissioner Maria Luis Albuquerque on October 7.

Why It Matters

• This regulatory stance removes a major uncertainty for the stablecoin industry. With the US passing legislation to promote stablecoin use this year, European regulators have avoided rules that could weaken their digital asset industry's competitiveness. According to JPMorgan analysts on October 10, 99% of stablecoin supply is dollar-pegged, and industry growth will increase demand for the dollar. For issuers like Circle, the Commission's stance validates their business model, eliminating the need to treat each EU jurisdiction as a separate island, thus avoiding huge operational costs and complexity and clearing the way for continued expansion in EU member states.

🏛️Senator Warren Slams Stablecoin Bill, Urges Treasury to Address Trump Conflicts and Financial Risks

Key Points

• Senate Banking Committee's top Democrat Elizabeth Warren called the "Genius Act" a "light-touch regulatory framework for crypto banks" in a letter to Treasury Secretary Scott Bessent;
• Warren is particularly concerned about potential conflicts of interest from the Trump family-run World Liberty Financial USD (currently one of the world's largest stablecoins), demanding the Treasury propose specific measures to address corruption;
• She cited Paxos' recent accidental minting of 3 trillion PYUSD stablecoins, arguing the Genius Act lacks necessary safeguards "to ensure stablecoins don't blow up the entire financial system," and that operational errors pose serious risks to issuers, market integrity, and financial stability.

Why It Matters

• Warren's criticism reflects Democrats' concerns about loopholes in the stablecoin regulatory framework, echoing Fed Governor Michael Barr's comments last week. As Congress begins drafting major legislation to regulate the entire crypto industry, Democrats and Republicans plan to meet separately with crypto industry executives. Warren is urging the Treasury to propose concrete plans to combat illicit finance, protect consumers from stablecoin-related fraud, and address financial stability gaps in the implementation of the Genius Act.

🏛️US OCC Downplays "Bank Run" Fears from Stablecoins

Key Points

• OCC head Jonathan Gould said at the American Bankers Association annual meeting that stablecoins will not trigger sudden deposit crises, and any large-scale outflow "will not happen unnoticed" nor "overnight";
• Standard Chartered predicts stablecoins could drain $1 trillion in deposits from emerging market banks within three years, while a US Treasury report estimates up to $6.6 trillion in US deposits could flow out depending on yields;
• Gould encouraged community banks to view stablecoins as a tool to compete with Wall Street giants, not a threat to survival, saying payment stablecoin connections "could be an opportunity for community banks to break the dominance of the largest banks in the US payment system."

Why It Matters

• Banking industry concerns are rising. Over 50 state banking groups, including the American Bankers Association and Bank Policy Institute, wrote to Congress in August demanding closure of "multiple loopholes" in the Genius Act, including extending the ban on interest payments to "digital asset exchanges, brokers, dealers, and affiliates," and removing the approval path for non-financial companies to issue stablecoins. While stablecoins pose challenges, they also create opportunities for banks to adopt blockchain infrastructure, tokenize deposits, streamline payments, and issue regulated interest-bearing digital dollars.

🏛️Crypto Industry Executives to Meet Senate Democrats on Market Structure Bill

Key Points

• According to journalist Eleanor Terrett, Coinbase CEO Brian Armstrong, Galaxy Digital CEO Mike Novogratz, and other crypto industry leaders will meet with pro-crypto Senate Democrats on Wednesday to discuss the crypto asset market structure bill;
• The meeting, led by Senator Kirsten Gillibrand, will also be attended by Uniswap CEO Hayden Adams, Circle Chief Strategy Officer Dante Disparte, and other industry leaders. The meeting comes as negotiations with Republican lawmakers have stalled;
• TD Cowen analysts warn that slow progress by US lawmakers on the crypto market structure bill could delay its passage until after the midterm elections.

Why It Matters

• Although the Genius Act passed quickly, Republicans and Democrats remain divided on the crypto market structure bill. The Democrats' six-page DeFi regulatory proposal has been criticized by Republicans and the crypto community.

New Product Releases

👀Ledger Launches $179 Nano Gen5, Building Digital Identity for an AI-Driven World

Key Points

• French crypto hardware wallet company Ledger has launched a comprehensive product line update, including the redesigned Ledger Nano Gen5 hardware device, revamped Ledger Wallet app (formerly Ledger Live), and the Ledger Enterprise Multisig platform for institutional asset management;
• Ledger now refers to its devices as "signers" rather than "wallets," positioning them as security tools for digital assets and digital identity in an AI-driven world. The devices support Clear Signing, allowing users to verify each transaction directly on the device before approval;
• The new Nano Gen5 is designed by Susan Kare, the original Macintosh icon designer, features Bluetooth and NFC connectivity for signing anytime, and includes a Ledger Recovery Key for an extra layer of asset recovery security. Retail price is $179 USD/EUR.

Why It Matters

• As society transitions to digital identity, faces AI challenges, and the line between physical and online worlds blurs, verifying authenticity becomes crucial. Ledger's transformation marks the company's evolving vision for the core of next-generation digital security, redefining its products as tools for not only managing crypto assets but also enabling "identity proof" and "authority proof." Ledger Enterprise Multisig extends the concept of signing from individuals to teams and organizations, allowing multiple parties to co-sign transactions with their own Ledger devices, providing security for financial management, smart contract governance, and multi-chain workflows, highlighting the growing importance of hardware security in digital asset and identity management.

👀Coinbase Launches American Express Card, Up to 4% Bitcoin Rewards for Coinbase One Members

Key Points

• Coinbase announced its Coinbase One Card is now available to all US Coinbase One members, with an annual fee of $49.99 and up to 4% bitcoin rewards per purchase;
• The card has no foreign transaction fees, and holders can pay credit card bills using linked bank accounts or crypto in their Coinbase account. Bitcoin rewards do not appear on 1099 forms at the time of earning, only potentially incurring taxes upon later sale;
• The physical card is specially designed with the original data of Bitcoin's Genesis Block, created by Satoshi Nakamoto on January 3, 2009, emphasizing its bitcoin-first identity.

Why It Matters

• The crypto rewards credit card market is becoming increasingly competitive. Gemini recently launched a Solana credit card offering up to 4% SOL cashback, merchant rewards up to 10%, and auto-staking options, with no annual fee. The two companies represent different market positioning: Coinbase focuses on single-asset bitcoin rewards and Genesis Block tradition, targeting bitcoin enthusiasts willing to pay an annual fee; Gemini offers multi-asset choices, category rewards, and a no-fee model. As crypto payments go mainstream, these products will help more consumers earn crypto assets through daily spending and enhance user loyalty to exchanges.

👀Swiss Crypto Bank AMINA Partners with Tokeny to Build a Compliant Asset Tokenization "Bridge"

Key Points

• Swiss FINMA-regulated crypto bank AMINA (formerly SEBA Bank) has partnered with Apex Group's blockchain platform Tokeny to create regulated infrastructure for institutional tokenization;
• Under the partnership, AMINA will handle traditional asset banking, custody, and regulatory oversight, while Tokeny will provide the technology to tokenize these assets, enabling clients to seamlessly transfer funds between traditional accounts and blockchain-based systems;
• Tokeny's platform is built on the ERC-3643 standard, adding a compliance layer that only allows authorized investors to hold or trade tokenized assets, covering asset classes such as government bonds, corporate securities, and treasury bills.

Why It Matters

• This partnership reduces the listing time for tokenized financial instruments from months to weeks, laying the foundation for a more interconnected and regulated on-chain financial system. As traditional financial institutions seek to integrate blockchain technology into their operations, AMINA's Swiss regulatory status combined with Tokeny's tokenization technology provides a regulated "bank bridge" for institutions to safely enter the digital asset space. This collaboration represents the accelerating convergence of traditional banking and blockchain technology, especially in Switzerland's regulated environment, providing robust infrastructure for institutional-grade asset tokenization.

👀Crypto Market Maker B2C2 Launches PENNY Platform for Cross-Chain, Zero-Fee Stablecoin Swaps

Key Points

• Institutional liquidity provider B2C2 has launched the PENNY platform, supporting instant, zero-fee swaps among major stablecoins including USDT, USDC, USDG, RLUSD, PYUSD, and AUSD, to meet growing institutional demand for frictionless liquidity tools;
• The platform currently supports stablecoin swaps on Ethereum, Tron, Solana, and multiple Layer 2 networks, with plans to regularly add more assets. Target clients include banks, merchant acquirers, exchanges, and stablecoin infrastructure companies;
• PENNY settles on-chain via B2C2's institutional trading infrastructure, which processes about $1 billion in stablecoin trading volume daily, enabling users to automatically swap tokens with no fees and no counterparty risk.

Why It Matters

• As the stablecoin market expands from crypto-native trading to payments, banking, and settlement use cases, B2C2's PENNY platform provides real-time execution and settlement infrastructure for traditional financial institutions and enterprises, avoiding network fragmentation risks and the friction and high costs of exchange trading. B2C2 Group CEO Thomas Restout said, "Stablecoins have moved beyond crypto trading use cases," and the accelerating regulatory clarity in the US, EU, and Asia is driving adoption of regulated stablecoins and encouraging new issuers, including banks and fintech companies.

👀Coinbase Launches Tool Allowing AI Agents Like Claude and Gemini to Directly Use Crypto Wallets

Key Points

• Coinbase has released a new system, Payments MCP, designed to enable large language models (including Anthropic's Claude and Google's Gemini) to "go on-chain," directly accessing blockchain wallets and transacting with cryptocurrencies;
• The tool was developed by Coinbase Developer Platform and launched after the x402 Foundation, supported by Coinbase and Cloudflare, which aims to standardize AI payments;
• Payments MCP is a Model Context Protocol that allows AI models to access the same on-chain financial tools as humans via natural language, from wallets and on-ramps to stablecoin payments.

Why It Matters

• This move marks growing interest among major tech companies in allowing AI models to directly access on-chain financial systems. Coinbase executives say crypto payment rails, especially stablecoins, "are the ideal payment infrastructure for agentic commerce" because they "operate at the speed of code, integrate seamlessly with APIs, and enable autonomous agents to act without human friction." Notably, Payments MCP can run locally on desktops with minimal user input and can be customized for specific agent needs, allowing widely used LLMs to natively connect to the crypto economy and payment protocols for the first time.

👀Coinbase to Add Privacy Transaction Features to Base Network

Key Points

• Coinbase CEO Brian Armstrong announced the company is developing privacy transaction features for its Layer 2 network Base, with more details to be shared soon;
• This move is part of Coinbase's privacy strategy, strengthened by the March 2025 acquisition of the Iron Fish team. The Iron Fish team has been integrated into Base's "privacy team," focusing on developing "privacy-preserving primitives";
• This news comes as privacy coins are again in the global spotlight. Despite regulatory pressure, privacy tokens like ZEC, XMR, and DASH have surged this year, with ZEC up 460% in the past 30 days.

Why It Matters

• Armstrong stated, "Privacy is critical to unlocking the full potential of the on-chain future," showing Coinbase is actively addressing user privacy needs. While privacy coins face strict regulatory scrutiny due to potential illicit use, leading to bans and delistings, research shows only about 7% of privacy coin transactions are linked to suspicious illegal activity, and only 0.14% of all crypto transactions involve illegal activity. Coinbase's move will bring enhanced privacy features to mainstream blockchains, potentially redefining the balance between privacy and compliance in the crypto ecosystem.

👀Tether Open Sources Cross-Chain Wallet Toolkit, Supports Human and AI Agents on Multiple Chains

Key Points

• Tether has open-sourced a modular wallet development kit (WDK), allowing developers to build self-custody wallets supporting Bitcoin, Lightning Network, Ethereum, Arbitrum, Polygon, Solana, and TON, among other blockchains;
• The toolkit can be deployed on mobile, desktop, and embedded hardware, with templates and modules enabling developers to add wallet features like swaps and lending without relying on closed platforms;
• Tether CEO Paolo Ardoino said this is about building "freedom-resilient monetary infrastructure," supporting "humans, autonomous machines, and AI agents to control their own finances."

Why It Matters

• This move is part of Tether's strategy to enter the AI field. Ardoino predicts that in the next 15 years, "every AI agent will have a wallet," machine-to-machine commerce will explode, and AI agents will use stablecoins and Bitcoin instead of traditional bank accounts for transactions.

Macro Trends

🔮JPMorgan: Stripe's "Dual Revolution" in AI and Capital Flows Could Unlock $350 Billion Market

Key Points

• JPMorgan analysts report that Stripe is expanding in both AI commerce and digital asset infrastructure, predicting it could unlock over $350 billion in market opportunities by 2030;
• The $107 billion fintech company turned profitable in 2024, processing over $1.4 trillion in annual payments across 195 countries, with net income up 28% year-on-year to about $5.1 billion;
• Stripe has returned to crypto by acquiring stablecoin orchestration platform Bridge and crypto wallet provider Privy, and is working with Paradigm to incubate Tempo, a Layer-1 blockchain designed for high-throughput payments, which last week announced a $500 million raise at a $5 billion valuation.

Why It Matters

• JPMorgan describes Stripe as a "beneficiary of borderless financial services," believing its early traction among AI startups gives it a structural advantage in scaling "agentic commerce." Stripe is poised to benefit from the integration of AI agents, stablecoins, and programmable money with global commerce. However, analysts also note challenges related to corporate expansion, business spin-offs, and regulatory risks, especially around US stablecoin regulation and Europe's MiCA rules.

🔮Japan's Three Major Banking Groups Plan Joint Stablecoin Launch

Key Points

• According to Nikkei, Japan's three major banking groups—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group—plan to jointly launch a stablecoin, creating a shared issuance and transfer framework for corporate clients;
• The stablecoin will initially be yen-pegged, with a possible future US dollar version, and will achieve interbank interoperability under common technical and legal standards;
• Mitsubishi UFJ Financial Group created the blockchain infrastructure and tokenization platform Progmat as early as 2023, supported by multiple Japanese institutions.

Why It Matters

• The global stablecoin market is expanding rapidly. Similar to the plan by nine major European banks to issue a euro stablecoin, Japan aims to establish its own digital payment standard to compete in the $300 billion market dominated by dollar stablecoins.

Capital Deployment

💰Aave Labs Acquires Stable Finance, Expanding On-Chain Savings to Mainstream Consumers

Key Points

• DeFi giant Aave's parent company, Aave Labs, announced the acquisition of San Francisco startup Stable Finance, which focuses on simplifying on-chain savings for ordinary users. Terms were not disclosed;
• After the acquisition, Stable Finance founder Mario Baxter Cabrera and his engineering team will join Aave Labs, with Cabrera serving as Product Director to jointly develop consumer-facing DeFi products;
• Stable Finance is known for its mobile app, which allows users to deposit dollars or crypto and earn interest through stablecoin yield strategies, hiding DeFi's technical complexity and providing a single interface for on-chain savings.

Why It Matters

• This acquisition reinforces Aave Labs' goal of "turning on-chain finance into everyday finance." Aave already operates Aave.com and the institutional platform Horizon launched in August, which has attracted over $300 million in deposits. Stable's technology will be integrated into future Aave Labs products, while its existing app will be phased out. This is Aave's third talent-focused deal after acquiring Sonar in 2022 and Family in 2023, showing the company is expanding its product design capabilities and committed to simplifying DeFi products for mainstream consumers. This strategic move indicates that on-chain stablecoin savings are gradually expanding from crypto enthusiasts to the mainstream consumer market.

💰Tether Participates in Pave Bank's $39 Million Funding, Betting on "Programmable" Banking

Key Points

• "Programmable bank" Pave Bank completed a $39 million Series A round led by Accel, with participation from Tether Investments and other investors including Wintermute, Quona Capital, and Helios Digital Ventures;
• Pave Bank holds a Georgian banking license and claims to be the world's first programmable bank for the digital asset and AI era, allowing corporate clients to manage fiat and digital assets in real time, automate financial operations, and reduce reliance on intermediaries;
• The bank will use the funding to expand regulatory coverage, accelerate product development, build institutional-grade infrastructure, and expand its global client base.

Why It Matters

• With ample cash from its highly profitable stablecoin business, Tether is building a diversified investment portfolio. Pave Bank's programmable, full-reserve banking model combines the strengths of traditional banking and digital assets, potentially promoting widespread stablecoin adoption. This investment reflects the accelerating convergence of crypto and traditional finance, with licensed institutions becoming key bridges connecting fiat and digital asset worlds.

💰Salesforce-Backed Payments Tech Firm Modern Treasury Acquires Beam for $40 Million

Key Points

• Modern Treasury will acquire stablecoin infrastructure project Beam for $40 million in an all-stock deal. Beam provides plug-and-play stablecoin adoption solutions for banks and enterprises and was previously valued at about $44 million;
• This acquisition is part of a trend of fintech companies acquiring stablecoin talent and tools, similar to Stripe's $1.1 billion acquisition of Bridge last year and development of the stablecoin Layer 1 "Tempo," while Coinbase and Mastercard are in a multi-billion dollar bidding war for BVNK;
• Beam founder Dan Mottice will join Modern Treasury to lead the stablecoin business. This summer, Beam joined the Global Dollar Network Alliance, co-founded by Paxos, Robinhood, and others, which is developing the USDG stablecoin.

Why It Matters

• Fintech interest in stablecoins is surging following the US Genius Act's passage in July, which established formal rules for dollar-pegged tokens, and USDC issuer Circle's successful NYSE listing. For Modern Treasury, Beam's technology will help it compete with Stripe and Coinbase in instant, programmable dollar payments, expanding its traditional payment rail services into the fast-growing stablecoin market.

💰Stripe-Backed Payment Chain Tempo Raises $500 Million Series A at $5 Billion Valuation

Key Points

• Tempo blockchain completed a $500 million Series A round led by Thrive Capital and Greenoaks, reaching a $5 billion valuation and becoming one of the most valuable new entrants in the stablecoin infrastructure space;
• The Ethereum-compatible Layer 1 incubated by Stripe and Paradigm has partnered with OpenAI, Shopify, Visa, and others, and is optimized for high-throughput payments and settlements;
• Ethereum developer Dankrad Feist (co-creator of Danksharding) has joined Tempo as a senior engineer, indicating that payment infrastructure is attracting top blockchain talent. Feist is a co-creator of Danksharding's sharding design, was appointed as a strategic advisor for Ethereum Foundation L1 scaling and user experience earlier this year, and has proposed increasing Ethereum's gas limit by 100x.

Why It Matters

• This round marks fintech giant Stripe's accelerated expansion into crypto, following its $1.1 billion acquisition of stablecoin infrastructure company Bridge.

💰Tether Strategic Investment in Kotani Pay to Advance African Digital Asset Infrastructure and Cross-Border Payments

Key Points

• Tether announced a strategic investment in Kotani Pay, an infrastructure provider connecting African Web3 users with local payment channels, aiming to lower the barrier for Africans and businesses to participate in global finance;
• According to Chainalysis, sub-Saharan Africa's crypto economy is small but saw on-chain crypto transaction volume exceed $205 billion from July 2024 to June 2025, up 52% year-on-year, mainly driven by retail use and remittances;
• Nigeria, Kenya, South Africa, and Ethiopia are key markets for user and use case expansion. Crypto is becoming an important financial tool in regions with high inflation, currency volatility, and limited banking infrastructure.

Why It Matters

• This investment will enable African businesses and individuals to seamlessly access digital assets and cross-border payment systems, addressing long-standing challenges such as high transaction costs and long settlement times, and helping previously excluded populations directly access the global economy. The partnership between Tether and Kotani Pay marks a new benchmark for how blockchain technology can transform daily life and business operations for individuals in Africa.

Market Adoption

🌱Zepz Launches Sendwave Wallet, Enabling Customers to Use Stablecoins in Daily Transactions

Key Points

• Global payments group Zepz (parent of WorldRemit and Sendwave) has launched Sendwave Wallet, a global peer-to-peer cross-border funds solution based on stablecoins, allowing customers to send, store, and use funds seamlessly in over 100 countries;
• The wallet is built on Circle's USDC, Solana blockchain, and Portal's cross-border wallet infrastructure, maintaining stable value by pegging balances to the US dollar, solving currency devaluation issues, and providing near-instant, reliable, and affordable transfers;
• Sendwave Wallet has surpassed traditional remittance business, enabling customers to transfer funds within the Sendwave ecosystem in seconds. In the future, users will be able to use USDC balances for real-world payments and services via payment cards and QR codes.

Why It Matters

• Zepz's move represents the transformation of traditional remittance companies into comprehensive financial service platforms. By integrating stablecoin technology, Zepz not only addresses currency devaluation and financial accessibility challenges faced by Global South customers, but also provides cross-border communities with a way to maintain financial stability. Sendwave Wallet will further expand features such as deposit rewards, global card spending, and bill payments, realizing the practical application of digital dollars in daily life.

🌱US Retail Chain Bealls Now Accepts Cryptocurrency Payments

Key Points

• Founded in 1915, US retail chain Bealls announced a partnership with digital payments company Flexa to begin accepting cryptocurrency payments in its stores;
• By integrating the Flexa Payments system, Bealls can accept payments in over 99 cryptocurrencies from more than 300 digital wallets;
• Bealls currently operates over 660 stores across the US, and customers at Bealls, Bealls Florida, and Home Centric branded stores can now pay with cryptocurrency.

Why It Matters

• This move demonstrates the acceptance of emerging payment technologies by a traditional century-old retail company. According to published data, by early 2025, about 65 million Americans (28% of US adults) will own cryptocurrency, indicating a large potential user base for crypto as a payment method.