Stablecoins

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Stablecoins 2.0: The Evolving Global Landscape Across Asia, the UK, Europe, and the Americas

August, 2025
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As the crypto ecosystem matures, Stablecoins 2.0 represent a pivotal evolution in the balance between decentralisation, regulatory oversight, and financial utility. These next-generation Stablecoins are no longer just digital dollars—they’re programmable, compliant, and ready for real-world finance.

Asia: The Regulatory Innovation Engine

Asia remains at the forefront of stablecoin innovation:

  • – Japan and Singapore have enacted frameworks enabling banks and fintech firms to issue fully regulated fiat-backed Stablecoins.

  • – Singapore’s MAS is spearheading Project Guardian, integrating tokenised assets with real-world use cases (learn more).

  • – Hong Kong is rolling out new licensing structures prioritising transparency and reserve audits.

“Stablecoins could redefine Asia’s remittance and trade finance infrastructure,” notes Ravi Menon, former head of MAS.

The United Kingdom: A Cautious Embrace

With the Financial Services and Markets Act 2023, the UK signals that Stablecoins will be regulated for payments under the Bank of England and the FCA.

As global players like Circle and PayPal explore GBP-backed solutions, UK adoption is expected to gain institutional backing.

Explore the UK’s broader fintech positioning on DNA Crypto Insights.

Europe: MiCA’s Strategic Framework

Europe’s MiCA Regulation provides the most comprehensive stablecoin oversight globally:

  • – Mandatory 1:1 reserve backing

  • – Daily redemption rights

  • – Institutional licensing and whitepaper requirements

From 2024, all e-money tokens must be authorised to operate in the EU. MiCA 2.0—covering DeFi and algorithmic Stablecoins—is expected by 2026.

Related: Understand MiCA’s Impact

Americas: Diverging Paths

The U.S. is fragmented—NYDFS regulates fiat-backed coins like USDC, while the Clarity for Payment Stablecoins Act awaits Congressional action.

In Latin America:

  • – Brazil’s central bank is piloting BRL-backed Stablecoins.

  • – Colombia and Mexico view Stablecoins as solutions for inflation and financial inclusion.

“In 2024, stablecoin settlement volumes reached $10 trillion, overtaking major card networks in transfer value.”

Future Outlook: Convergence and Competition

Stablecoins 2.0 will be:

  • – Programmable: Enabling payroll, escrow, and supply chain automation.

  • – Compliant: Adhering to global audit and redemption standards.

  • – CBDC-compatible: Serving as hybrid bridges in centralised systems.

McKinsey forecasts Stablecoins will represent “10–15% of all cross-border payments by 2028.”

DNA Crypto’s Strategic Position

At DNA Crypto, we anticipate where regulation, finance, and crypto converge. We support clients in:

  • – Deploying Stablecoins for international settlement and liquidity optimisation

  • – Navigating MiCA, MAS, FCA, and U.S. frameworks

  • – Designing tokenisation strategies for real-world assets
     

For expert advisory on stablecoin integrations, regulatory clarity, and tokenised finance, partner with us at DNACrypto.co.

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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Illustration Representing the GENIUS Act, First US Legislative Bill to Regulate Stablecoins.

MiCA Is Reshaping Stablecoin Power—Will Tether Catch Up or Be Left Behind?

July, 2025
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European financial regulators have drawn a clear line in the sand: the future of Stablecoins is regulated, transparent, and compliant. The Markets in Crypto-Assets Regulation (MiCA) officially recognises E-Money Tokens (EMTs) and Asset-Referenced Tokens (ARTs)—not USDT or algorithmic Stablecoins.

Quote for emphasis:

“With MiCA now active, only EMTs and ARTs offer the legal certainty, redemption rights, and institutional appeal needed to integrate with Europe’s financial system.” – Read more on MiCA’s role in stablecoin reform

Tether’s Position and Market Power

Despite regulatory uncertainty, Tether (USDT) remains the world’s largest stablecoin, with a circulation of over $112 billion. USDT continues to dominate trading volume, particularly in emerging markets. In early 2024, Tether minted over $6 billion in USDT, primarily to meet demand from crypto-native users, including institutional buyers and nation-state actors, who accumulated BTC.

“USDT minting spiked significantly in Q1 2024, feeding into Bitcoin reserves for ETFs, hedge funds, and sovereign wealth strategies.”

But that power may come at a cost. Under MiCA, unregulated Stablecoins face usage restrictions within the EU for licensed platforms, tokenization projects, and financial services providers.

The Rise of EMTs: Circle and Societe Generale Lead

Circle’s EUROC and USDC are actively preparing for MiCA compliance. Meanwhile, Societe Generale’s EURCV is the first bank-issued EMT under French law. These tokens offer the exact qualities MiCA demands:

  • – Transparent reserves

  • – 1:1 Fiat redemption

  • – Issuance by licensed institutions

“MiCA is reshaping the stablecoin race, and for the first time, compliance is more valuable than scale.” – Explore how MiCA is shaping custody and token rules.

Article Linking Suggestions

Relevant links from DNAcrypto’s knowledge section:

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Why USDT is Buying Bitcoin in a World of Regulation and Uncertainty

May, 2025
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When the crypto market starts getting hit with regulatory changes, it is no surprise that investors begin to get nervous. From delistings to government crackdowns, the rules are changing, and it feels like nobody is safe.

Amidst this regulatory frenzy, Stablecoins like Tether (USDT) often find their place as reliable, predictable options — until they don’t.

Tether’s Response to Regulation

Tether, the world’s largest Stablecoin, has been facing regulatory heat lately. Several major exchanges, including Crypto.com and Binance, have faced pressure from European regulators due to new rules requiring Stablecoins to meet stricter guidelines.

“Crypto.com has already announced it will delist USDT for EEA users by July 2024, citing MiCA compliance concerns.” – Crypto.com press release, January 2024

“Binance is evaluating its stablecoin offerings across the EU in light of MiCA, with delistings of non-compliant tokens expected to follow.” – Binance EU Strategy Team, March 2024

While some exchanges have responded by suspending or delisting USDT on specific platforms, Tether remains one of the most widely used Stablecoins globally. As governments flex their muscles, crypto companies must either adapt or risk being left behind.

“Under MiCA regulations, unregulated stablecoins like USDT are increasingly being pushed out of European markets due to transparency and reserve backing requirements.” – European Securities and Markets Authority (ESMA), 2024 policy brief

In the past, when regulations started to tighten, the answer was simple: adjust and move on. But Tether’s response is a bit more interesting. Rather than just hunkering down and hoping things settle, Tether is making a bold move: They are buying Bitcoin—a lot of it.

Why Bitcoin?

Simple. It doesn’t care about tariffs, inflation, or whether a government thinks it should exist. Bitcoin operates on its own, outside the reach of any central bank, and it’s not tied to any one country’s political whims.

Today, Stablecoins like USDT are subject to shifting government policies, and Bitcoin’s neutrality becomes an appealing asset. Tether is betting that diversifying into Bitcoin can create a buffer against the unpredictable nature of global regulations.

“Tether’s delisting in Europe marks the start of a geopolitical shift where stablecoins must prove they are more than shadow dollars.” – Dr. Patrick Hansen, EU crypto policy expert

While traditional financial assets are often at the mercy of political moods, Bitcoin continues to operate independently, regardless of the news.

In other words, Bitcoin offers financial freedom that traditional currencies, even stable ones like USDT, can’t match. And that’s precisely what Tether needs right now.

“Europe’s regulatory shift is not just about Tether—it’s about redefining the very foundation of what digital money means in a post-MiCA world.” – Clara Duro, Head of Digital Assets Regulation, Frankfurt School of Finance

Bitcoin’s Role in a Shifting Landscape

This isn’t some wild theory or a crypto pipe dream. Bitcoin has already proven its worth as a kind of hedge during times of economic uncertainty. Consider the trade wars between the US and China, which have been ongoing for about a decade. Tensions between the two countries saw Bitcoin surge in interest, as people turned to it as a potential haven, much in the same way investors flock to gold during uncertain times.

Tether’s bet on Bitcoin comes as global supply chains and trade relationships are again being tested. With tariffs becoming more common and countries reevaluating their trade policies, Bitcoin is starting to resemble digital gold — an asset that’s easy to store, move, and trade, even in a digital-first world.

“With the European Union cracking down on stablecoins that don’t meet their asset reserve and audit standards, Tether’s hold on the continent is weakening.” – Reuters Financial, February 2025

What’s the Catch?

Of course, there are a few things to keep in mind. Bitcoin’s volatility is no secret. While its adoption is growing, it remains a less popular choice for many investors. Some still see it as too risky, and others don’t fully understand it.

And, unlike traditional safe havens like gold or government bonds, Bitcoin’s relationship with market movements isn’t always clear. On some days, it behaves like a high-risk asset; on other days, it acts like a refuge. It’s unpredictable and difficult to predict.

But in a world where everything seems to be up in the air, having an asset that’s not tied to any country’s economy is a real advantage. Bitcoin has demonstrated its ability to function independently, and that’s why Tether is incorporating it into its plan. Tether is still figuring out how to navigate a world where regulations change almost daily, but its decision to invest in Bitcoin shows that it’s thinking ahead. It’s not a perfect solution, but it’s a smart one.

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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Stuttgart, Germany - 01-15-2023: Person holding smartphone with logo of crypto company Tether Operations Limited on screen in front of website. Focus on phone display.

MiCA vs Tether: What Europe’s Stablecoin Shake-Up Really Means

April, 2025
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The crypto industry enters a new chapter as the European Union rolls out its much-anticipated MiCA (Markets in Crypto-Assets) regulation. One where compliance is no longer optional, and some familiar names are suddenly missing from the roster.

Among them? Tether’s USDT — the world’s most traded Stablecoin – is now being delisted from several European exchanges, not for lack of popularity but because it no longer meets the game’s rules.

So what’s behind the shift, and what does the future hold for digital assets in Europe?

The MiCA Structure and Speculation

MiCA isn’t just another policy update. It’s a comprehensive regulatory framework designed to bring transparency, accountability, and consumer protection to Europe’s fast-growing crypto market.

At the heart of this regulation are new standards for Stablecoins: digital assets designed to hold their value against fiat currencies like the euro or dollar.

Under MiCA, Stablecoins must:

  • Be backed by fully transparent, liquid reserves on a 1:1 basis.
  • Maintain operational safeguards to ensure funds can be redeemed at any time.
  • Receive prior authorisation from EU regulators before circulating in the market.
  • Limit their market impact if they grow too large, with additional oversight.

It’s an ambitious shift that aims to stabilise a market often defined by volatility.

Why Tether’s USDT Is Getting Delisted

Tether’s USDT may dominate globally but has issues aligning with MiCA’s strict requirements. Questions around its reserve composition and past transparency practices have long followed the Stablecoin, and now, they’re proving incompatible with EU rules.

Exchanges are also responding accordingly, with firms like Crypto.com & Kraken.com already stopping USDT purchases for European users. At the same time, Coinbase has announced its intention to delist any Stablecoin that doesn’t meet MiCA standards.

“Tether’s delisting isn’t about popularity — it’s about meeting the game’s new rules.”

Tether criticised this move, calling it rushed and potentially disruptive to users. Still, the direction is clear: the EU wants compliant, well-audited assets in its ecosystem and isn’t waiting around.

The Bigger Picture for Europe’s Crypto Landscape

MiCA is widely viewed as a landmark regulation from a major economy- the first of its kind. By creating clear rules, the EU hopes to attract responsible innovation, reduce consumer risk, and strengthen crypto’s long-term viability within its borders.

But it’s not without challenges.

Start-ups and smaller firms may struggle to meet compliance costs. Some global players may choose to shift operations elsewhere. And the early days of MiCA’s rollout could create market friction, particularly as exchanges adapt and Stablecoin availability narrows.

Yet, for many, this is a necessary evolution. A more transparent, predictable regulatory environment could lead to greater confidence, broader adoption and a more mature European crypto market.

A Defining Moment

Tether’s delisting is more than just a headline; it marks a turning point. For years, the crypto world operated mainly on its terms. Now, at least in Europe, the rules are changing.

The MiCA framework brings new demands and new opportunities. It’s a chance for the digital asset space to prove that it can scale responsibly and for Europe to build a safer, more reliable financial future powered by Blockchain technology.

“MiCA is more than policy — it’s a statement that Europe is ready to lead in responsible crypto innovation.”

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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Dollar coin secured by a shield, symbolizing financial protection and security.

The Role of Stablecoins Under and MiCA: A New Era of Regulation

March, 2025
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It is safe to say that Stablecoins have taken the crypto market by storm. Unlike wild-riding Bitcoin or Ethereum, Stablecoins are specifically designed to stick around, as their name would suggest. Pegged to real-world currencies or commodities like the US dollar or precious metals like gold, they are popular for payments, trading and savings.

As is often the case when there is much power, there is much responsibility—or, in this case, regulation. That’s where the European Union’s Markets in Crypto-Assets Regulation (MiCA) steps in.

Stablecoins Under MiCA

Mica is a game-changer as it classifies Stablecoins into two types: Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs). ARTs are backed by a mix of assets, while EMTs are pegged to a single fiat currency, like the euro.

Now, here’s where things get serious. You’ll need official approval to issue a Stablecoin in the EU. No more launching coins overnight and hoping for the best. Issuers must hold enough reserves to cover every token in circulation—no shady business, no empty promises.

They’ll also have to provide regular reports proving their financial stability. And if a Stablecoin gets too popular, the EU might impose transaction limits to prevent disruptions in the economic system.

On the consumer side, MiCA is a win. Users will have clear rights, including the ability to redeem their Stablecoins for real money whenever they want. Transparency, security, and accountability are the name of the game.

The Global Outlook on Stablecoin Regulation

Europe isn’t the only player in this game. The United States is working on its laws, with proposals like the Clarity for Payment Stablecoins Act. Meanwhile, Japan and the UK are rolling out their frameworks to ensure Stablecoins don’t slip through regulatory cracks.

One big concern is Cross-border payments. Stablecoins make it easier to move money across countries without banks slowing things down. But governments worry about money laundering, tax evasion and financial instability. Some central banks are considering launching their digital currencies (CBDCs) to compete with Stablecoins.

The Uncertainties Facing These MiCA Regulations

Though MiCA establishes a crucial regulatory structure, the journey forward is not free of challenges. A significant challenge is how Stablecoins issuers will respond to stringent reserve requirements and compliance regulations. Less extensive projects might find it hard to satisfy these requirements, which could result in market consolidation where only financially robust participants endure.

Uncertainty exists about how MiCA would be integrated alongside other globally established regulations. Since countries like Japan and the United States are designing their Stablecoin regulations, variations in frameworks could yield loopholes in-laws for transnational transactions.

Also, there is still no clarity on how algorithmic Stablecoins would be accommodated as they are rooted in complex mechanisms, are not directly asset backing, and have concerns regarding stability and governance.

Despite these obstacles, one fact remains clear: regulatory clarity will influence the future of Stablecoins, defining their integration into conventional finance and digital economies. It is yet to be determined whether this will lead to more innovation or tighter limitations.

The Future of Stablecoins

Love them or hate them, Stablecoins aren’t going anywhere. They’ll keep evolving, playing a more significant role in payments, DeFi, and even central bank collaborations. Expect improvements in security, compliance and innovation—possibly even new forms of algorithmic stability.

Mica is just the beginning. As global regulators fine-tune their approach, Stablecoins will continue to shake up the financial world. Whether they become the future of money or just another tool in the crypto space remains to be seen. But one thing is clear: The Stablecoin revolution is far from over.

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Ripple Launches RLUSD Stablecoin on Global Exchanges

February, 2025
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Ripple, a leading provider of digital asset infrastructure tailored for financial institutions, has officially launched its latest innovation: Ripple USD (RLUSD). This enterprise-grade Stablecoin is pegged 1:1 to the US dollar and seeks to link conventional systems and Blockchain.

Listed and launched on December 17, 2024, RLUSD was primarily available on five Crypto exchanges: MoonPay, Archax, Uphold, Bitso, and CoinMENA. It is further set to become accessible to other large platforms, including Bitstamp and Zero Hash.

Transparency, Reliability, and Accountability

As an asset, RLUSD was designed to bring the highest levels of stability, liquidity, and reliability. It is backed by a reserve consisting of USD deposits, government bonds, and cash. Ripple stated it will present an RLUSD reserve Everest report monthly to increase transparency and build user credibility.

Yet, this commitment to transparency explains why the exchange has demonstrated great organisational accountability in the digital finance industry.

Based firmly on the present XRP Ledger and Ethereum Blockchains, RLUSD provides a highly flexible environment for use and applicability across the entire spectrum of finance. This dual-chain support improves connection quality and allows it to meet the demand of multiple applications, such as DeFi and institutional finance.

Is RLUSD Ripple’s Game-Changer?

Ripple CEO Brad Garlinghouse said that regulatory certainty would be critical in developing the RLUSD. He also stressed the importance of the trust company charter issued to Ripple by the NYDFS, as Stablecoin bears all the necessary regulatory support.

In addition, the organisation has the support of an Advisory Board comprised of esteemed leaders from the financial market. Notable members include Raghuram Rajan, the former governor of the Reserve Bank of India, and Kenneth Montgomery, a long-time payment and monetary systems expert.

The design and application of RLUSD make it a valuable and inevitable player in effective global transformational financial roles. Some main characteristics include real-time payment settlements, increased integration with DeFi platforms, and the capacity for collateralising on-chain tokenized assets.

Ripple’s focus on its global payment subsidiary intends to meld RLUSD into its expansive $70 billion payment system beginning in the first quarter of 2025. This strategic move will further solidify Ripple’s place and role as the industry pioneer of innovation, compliance, and sustainable development of digital financial products in the changing environment.

Ultimately, as the pace of the transition to Blockchain-based solutions increases, RLUSD is the best partner for bridging the existing financial systems and the advantages of decentralised technologies, thus creating new stability and reliability standards within the digital space.

Image Source: Envato

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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USDT Banned in Europe: What Does This Mean for the Crypto Market?

February, 2025
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The Cryptocurrency industry saw a significant development with the official cancellation of USDT (Tether) across Europe. Yes! USDT is now banned in Europe.

The most popular Stablecoin, USDT, is significant for crypto trading and liquidity. The European Union’s regulatory crackdown has sparked questions about how this ban will affect traders, investors, and the larger crypto space.  

Let’s break it down…

What is USDT?

USDT (Tether) is a Stablecoin pegged to the US dollar. It allows traders to shop for dollar-resistant funds and transfer money without regular currency price swings. For a long time, this powerhouse has facilitated billions of dollars of transactions daily across multiple trading platforms.

Why Was USDT Banned in Europe?

European Union institutions are doubling on Cryptocurrency inspections to build financial transparency and lower market risks. The issuance of USDT has faced regulatory scrutiny because of complaints about noncompliance standards and problems related to reserve backing transparency. European authorities resolved to ban USDT based on their finding that Tether reserve audit standards were inadequate and their concerns regarding financial stability threats.

 

Market Impact of the USDT Ban

Delisting USDT from European markets w–. It will have significant effects.

Here’s what to expect:

1. Liquidity Crunch

USDT has been a go-to asset for traders looking to hedge against volatility. With its ban, liquidity in specific trading pairs may decrease, making it harder to execute large trades efficiently.

 

2. Shift to Alternative Stablecoins

Traders will likely consider alternatives such as USDC (USD Coin), DAI, or EURT (a euro-pegged Stablecoin). These alternatives may surge demand as users look for stable assets to park their funds.

 

3. Short-Term Volatility

There is talk of price fluctuations thanks to the transition away from USDT. This would particularly affect altcoins that rely heavily on USDT trading pairs. Traders should be on the lookout for short-term price swings.

What Changes Should Traders Expect?

1. Exchanges Adjusting Trading Pairs

Crypto exchanges will likely delist USDT trading pairs or restrict its use in European jurisdictions.

 

2. More Regulatory Scrutiny

With the USDT ban, the EU may introduce even stricter regulations for other Stablecoins. Traders and investors should monitor evolving compliance requirements and transparency standards.

 

3. Market Rebalancing

As traders shift their holdings, markets may undergo a temporary shake-up. Some assets might see price corrections as liquidity moves from USDT to alternative Stablecoins.

 

What Should You Do Now?

  • Diversify Your Holdings—If you rely heavily on USDT, consider shifting to Stablecoins with more substantial regulatory backing, such as USDC or DAI.

  • Stay Updated – Monitor exchange announcements and regulatory changes closely to avoid disruptions in trading activities.

  • Prepare for Volatility – Short-term price movements may be unpredictable, so plan your trades accordingly.

The ban on USDT is a significant shift in the crypto market. Now, traders must adapt by learning about other Stablecoin alternatives and constantly monitoring risk to maintain their market position.

 

The Take Home

Since its inception, Tether has faced increased oversight in Europe and criticism for rapid audit processes, which puts pressure on Stablecoins. Certainly, Stablecoins must demonstrate transparency to regain investor confidence and build a sustainable future. This ban has seen Tether boldly move to UAE, incorporating Bitcoin and the Lightning Network.

Image Source: Adobe Stock

Disclaimer: This article is purely for informational purposes. It is not offered or intended to be used for legal, tax, investment or financial advice.

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Top five cryptocurrency stablecoin tokens by market capitalization on March 2022. Tether, Usd Coin, Binance Usd, Terra Usd and Dai. High quality 3D

Will 2024 be the Year of Stablecoins?

February, 2024
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Providing stability in an otherwise volatile market, the dynamic nature of the crypto world has emerged as a pivotal instrument for Stablecoins. But one question remains: Will 2024 be the Year of Stablecoins? Given the volatile nature, Web3 technology is changing how we handle assets by…

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PayPal PYUSD image with a Bitcoin logo. PayPal Stablecoin.

PayPal, Payments and PYUSD

January, 2024
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Money is powerful when it is used, but not when it is just sitting around. Every day, billions of transactions occur worldwide, and payments are the most regular and tangible use of money. But again, payments are more than just a means of exchanging…

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