Digital-Currency News Digest October 12th, 2026
Singapore Anchors Wholesale Settlement in Central-Bank Money
MAS’s chief said stablecoins should not be presumed to hold par value and may be unsuitable for large wholesale settlement. Deposit tokens and central bank money remain the more reliable anchors for banking and systemically important payments. Singapore is advancing a wholesale Singapore dollar CBDC and tokenised government bills as a stability layer for institutional markets. At the same time, its proposed stablecoin rules would require licensed issuers to hold reserves at least equal to par value and to redeem coins at par. The remarks frame regulated stablecoins as likely to expand in retail spending, merchant payments, and crypto-market activity, while large cross-border or interbank settlement remains anchored in bank deposits and central-bank money.
South Korea Keeps Hangang Customer Data With Commercial Banks
Bank of Korea Governor Shin Hyun-song said that under Project Hangang, also called Project Han River, the deposit-token digital-currency initiative, individual transaction records and personal data remain managed by commercial banks rather than the central bank. The Bank of Korea would handle only interbank settlement and clearing, leaving commercial banks to retain customer information and respond to government or tax-service requests for financial data. This division was presented as a privacy safeguard and a response to surveillance concerns. It also reinforced the central bank’s clarification that Project Hangang is not a retail CBDC, but an institutional arrangement in which banks keep customer relationships, data governance, and regulatory interface.
BOK Will Use Institutional CBDC for Tokenized Treasury Pilot
The Bank of Korea confirmed that it will use its institutional CBDC, rather than private stablecoins, as the settlement asset for a 2027 tokenized Treasury and government-bond pilot. The central bank cited settlement finality and lower settlement-default risk. It has created an Asset Tokenization Team and is in early discussions with the Ministry of Economy and Finance on legal, technical, and operational requirements. Separately, Project Hangang is expanding to nine banks and 500,000 participants, with broader deposit-token use cases for real-world payments and government EV-charging subsidies. The digital-currency pilot budget rose 61.8% to 12.52 billion won. Officials have not yet determined how Project Hangang relates to the tokenized Treasury pilot.
ECB Weighs Blockchain for Central-Bank Money
The European Central Bank is exploring blockchain integration for central-bank money, including options such as tokenized bank reserves and distributed-ledger-linked settlement. The research does not imply an immediate shift away from existing settlement arrangements; instead, the ECB emphasized gradual adaptation, testing, and compatibility with current market infrastructure. The exploration matters because tokenized reserves and wholesale central-bank money could support faster settlement of tokenized assets, interbank payments, and cross-border transactions. It also positions the ECB to evaluate how blockchain rails might interact with bank deposits, stablecoins, and market infrastructure. The cautious approach reflects the balance between innovation and preserving monetary policy, settlement finality, and financial-stability objectives.
CBDC Critics Warn of Programmable Money Controls
CBDC development has progressed slowly in several advanced economies, with the digital euro facing waning public excitement even as programs such as the digital yuan, digital ruble, digital won, and digital rupee continue. The concern is that central-bank money could differ sharply from Bitcoin by enabling full transaction tracking and programmable features that restrict where, when, or how funds can be spent. Critics argue that governments or employers might use such controls for social, commercial, or policy-related purposes, even if officials present the technology primarily as a modernization effort. The warning reflects a broader distrust of programmable public money and suggests that political acceptance may hinge on strong privacy guarantees and limits on spending controls.
ESMA Orders Removal of Non-Compliant EU Stablecoins
ESMA’s October 2026 opinion requires MiCA-authorised crypto service providers to stop offering EU clients services involving stablecoins without MiCA authorization, including non-compliant asset-referenced tokens and e-money tokens. The order covers exchanges, transfers, custody, investment advice, and portfolio management, and national authorities must enforce technical, contractual, and organisational controls that block new EU access. Providers may take only limited, supervised actions to liquidate, convert, withdraw, transfer, or safekeep existing customer holdings. Remediation must be completed within three months of publication, by January 8, 2027. Traders may face reduced access to certain stablecoins, and global issuers face pressure to meet reserve, redemption, and transparency standards or exit the EU market.
France Moves to Tax Swaps Into Regulated Stablecoins
France’s National Assembly finance committee adopted amendments that would make swaps of crypto assets into MiCA-regulated stablecoins taxable from January 1, 2027. The change would close a loophole under which gains could be deferred until a later cash-out. A separate amendment would allow crypto losses to be carried forward for ten years, while crypto-to-crypto swaps would remain untaxed. Both measures still require approval by the full National Assembly and the Senate. The approach brings France closer to Germany, where swapping into stablecoins has already been treated as a taxable disposal in the first year, although the one-year holding period restarts after each swap.
GENIUS Act Stablecoin Resolution Paper Raises Concerns
A new research paper argues that the GENIUS Act could give failing stablecoin issuers a superpriority position in resolution. Under the authors’ view, issuers might mint newly backed coins to repay favored creditors, subordination of existing debt could occur, and resolution costs could shift toward deposit insurers and taxpayers. The paper does not merely describe the mechanics; it proposes corrective safeguards, including stronger capital requirements, transfer limits, and lockup rules, to prevent a stablecoin issuer’s failure from being resolved in a way that privileges selected creditors. The argument adds to a broader regulatory debate over how bankruptcy, redemption, and reserve obligations should be aligned when stablecoins become integral to payment and settlement systems.
Harvard Panel Questions Blockchain and Stablecoin Payment Assumptions
Harvard’s Wenxin Du challenged a core assumption in payment modernization: that blockchain-based innovation is necessary to improve cross-border and retail payments. In a panel presentation, she questioned the economics of 24/7 gross settlement and argued that many cross-border frictions reflect misaligned bank incentives rather than an absence of ledger technology. She was also skeptical that stablecoins automatically solve payment inefficiencies, pointing to high fiat-conversion costs and thin foreign-exchange liquidity as practical constraints. Her conclusion urged central banks and policymakers to prioritize interoperability, institutional trust, and sound settlement arrangements over distributed-ledger solutions that may add complexity without proportionate benefits.
US Credit Unions Seek Parity in Digital-Asset Services
America’s Credit Unions is urging Congress to allow credit unions to offer digital-asset services such as custody, payments, lending, and staking on terms comparable to banks. The trade group’s position comes as stablecoin and broader digital-asset legislation move forward in Washington. It warned that stablecoin products offering competitive yields could accelerate deposit flight from credit unions, while stressing that NCUA supervision should remain central to any credit-union activity under the GENIUS Act. Separately, NCUA has proposed adding 26 stablecoin-specific accounts to quarterly Call Reports. Public comments are due in December 2026, and implementation could occur in March 2027 if the proposal is adopted.
Kyrgyzstan Liquidates National USDKG Stablecoin
Kyrgyzstan is halting and liquidating its national USDKG stablecoin project. Authorities ordered the liquidation of the issuer and associated exchange after sanctions concerns, creating an orderly exit route for users. Holders are allowed to redeem USDKG tokens for fiat currency or USDT. The decision marks a rare reversal of a state-backed stablecoin initiative and highlights how jurisdiction-specific sanctions risk, reserve adequacy, and cross-border transfer concerns can shape digital-currency policy. It also signals that national stablecoin projects must maintain credible compliance, redemption, and reserve-management arrangements to preserve public confidence and international acceptance.
South Korea Tightens Cross-Border Virtual-Asset Transfer Rules
South Korea proposed stricter licensing and reporting requirements for cross-border virtual-asset transfers, including registration for virtual-asset transfer operators. The measure would require firms that move digital assets across borders to meet compliance, reporting, and oversight standards before operating. The proposal fits a broader effort to formalize payment flows involving stablecoins and other virtual assets while reducing anonymous or opaque cross-border movements. For issuers, exchanges, and payment firms, the rules would increase operational documentation and compliance costs, but could also improve regulatory clarity and market confidence. The development matters because stablecoin settlement increasingly depends on transfer operators, custodians, and payment rails that cross national borders.
Dubai Requires Full VASP Reserve Coverage
Dubai’s VARA regulatory update requires virtual asset service providers to hold 100 percent reserves against customer liabilities. The requirement is designed to ensure that customer-held digital assets are fully backed, reducing the risk that provider insolvency or operational failure impairs redemption. It places particular emphasis on stablecoin and virtual-asset businesses that may offer custody, transfer, or settlement services. For issuers and exchanges, full reserve coverage raises operational and balance-sheet requirements, but it also strengthens consumer protection and institutional credibility. In a region actively courting tokenized settlement and cross-border payments, the rule signals that regulatory approval will depend on demonstrable reserve integrity and customer-asset segregation.
Hong Kong and Malaysia Plan Stablecoin Workstream
Hong Kong and Malaysia announced a joint workstream focused on compliant cross-border stablecoins and tokenized settlement. The initiative would explore how the two markets can coordinate legal, regulatory, and operational standards for digital currencies used in payments, trade finance, and institutional settlement. A central objective is to create a compliant framework that supports cross-border value transfer while preserving financial-stability oversight. The workstream is important because stablecoin and tokenized-deposit adoption depends on interoperable rules for reserve backing, redemption, licensing, data handling, and settlement finality. For issuers, banks, and fintech providers, progress could reduce jurisdictional fragmentation and open a clearer path for Asia-Pacific tokenized payment corridors.
Tether Explores Tenge-Pegged Stablecoin in Kazakhstan
Tether is exploring a tenge-pegged stablecoin with Kazakhstan’s National Bank and Almaty officials. The initiative would involve a local currency stablecoin, with possible tokenization pilots connected to Kazakhstan’s financial infrastructure. Such a project could provide a regulated bridge between local currency payments and cross-border digital-asset settlement, while also giving Tether a foothold in Central Asia. The exploration matters because local-currency stablecoins require close coordination with national monetary authorities, reserve-management frameworks, and compliance regimes. Success would depend on tenge stability, clear redemption terms, and integration with payment rails that can support everyday commercial and institutional use.
Japan Completes Cross-Chain Tokenized Settlement Test
Japan’s Project Trinity completed a cross-chain delivery-versus-payment test using corporate bonds and trust-type stablecoins. The milestone showed that institutional tokenized assets can be settled atomically across different blockchain networks, reducing the timing and counterparty risks associated with fragmented settlement. The test used trust-type stablecoins as a compliant payment asset and demonstrated how tokenized corporate bonds could move together with settlement payment in a coordinated transaction. The result is significant for Japanese capital markets, where banks, exchanges, and custodians are exploring how tokenized securities and stablecoin rails can be integrated. It also provides a practical template for cross-chain institutional settlement.
Visa Survey Finds Broad Asia-Pacific Stablecoin Interest
A Visa survey of 14,250 consumers across 14 Asia-Pacific markets found that 46 percent are likely to use stablecoins by 2031, while 16 percent had already used them in the previous 12 months. Although 66 percent said they were aware of stablecoins, only 6 percent accurately understood how they work, highlighting a major clarity gap. Interest centered on online purchases, travel spending, and cross-border transfers. Trust and clarity remained the main barriers: non-users cited fraud concerns and limited understanding, while many preferred regulated providers, government or central-bank entities, banks, or other established financial institutions. The findings suggest consumer adoption depends on familiar institutions and transparent, regulated stablecoin services.
BNY Mellon Links XRP and RLUSD to Corporate Payments
BNY Mellon’s stablecoin publication said the bank is collaborating with Ripple Labs to help corporate treasuries move money around the clock using stablecoins and other digital assets, including XRP. The document also named BNY Mellon as the primary reserve custodian for Ripple’s RLUSD stablecoin, reinforcing the bank’s role in institutional tokenized payments. It emphasized interoperability between tokenized deposits and stablecoins as a key element for scalable payments, suggesting that corporate clients may move between deposit-based rails and stablecoin-based rails depending on settlement speed and counterparty needs. The passage offers a clear institutional acknowledgment of XRP in BNY Mellon’s payments discussion, without confirming that XRP is actively used for all payment transactions.
Solana Stablecoin Supply Falls 6.4% in 16 Days
Solana’s stablecoin supply fell from $17.45 billion on September 25 to $16.33 billion by October 11, 2026, a decline of about $1.12 billion, or 6.4 percent, over 16 days. The contraction reflected redemptions or bridging activity rather than a drop in SOL’s price, but it left Solana with thinner trading depth compared with Ethereum and Tron. USDC and USDT still dominate the remaining stablecoin mix on the network. A MiCA-focused analysis found that 45.5 percent of Solana stablecoins are EU-authorized e-money tokens, while 30.7 percent are tokens without ESMA entries, underscoring how regulatory status and chain-level liquidity can diverge.
Solana Adoption Expands Through Samsung Wallet and Open USD
Solana’s stablecoin ecosystem has exceeded $15 billion in supply, accompanied by a record 14.02 million holder addresses, indicating continued growth in blockchain-based payments. Samsung Wallet is set to enable USDC transfers for approximately 82 million Galaxy devices, bringing stablecoin functionality to a large consumer hardware base and expanding everyday use cases such as retail purchases, remittances, and wallet-based transfers. Open USD also launched on Solana with support from Visa and Mastercard, further embedding major payment networks in the ecosystem. Together, the developments point to a shift from speculative stablecoin balances toward device-level distribution, merchant acceptance, and cross-network payment integration.
KuCoin Promotes External Stablecoin Deposits Into KCUSD
KuCoin is running a September 2026 campaign offering tiered rewards of up to 6 percent APR to the first 3,000 eligible users who deposit at least $1,000 in USDT, USDC, or USDG from external wallets and subscribe to at least $1,000 of KCUSD. The 30-day rewards are paid in KCUSD and depend on final net external deposits, with only eligible principal up to each tier maximum qualifying for the bonus APR. The exchange emphasized that APR rates are dynamic and not guaranteed, and that participation is subject to KYC, registration, and anti-abuse conditions. The promotion targets users moving external stablecoins into the platform’s native token and using them for on-chain or exchange activity.
Stablecoin DEX Volume Reaches $161.4 Billion in 30 Days
Stablecoin decentralized-exchange volume reached $161.4 billion across 35 venues over a 30-day period, according to on-chain data released on October 10, 2026. Uniswap v4 and Uniswap v3 together accounted for 47.2 percent of that volume, making them the dominant liquidity venues for stablecoin swaps. PancakeSwap, BisonFi, and Aerodrome were the next-largest venues. The top 10 exchanges represented roughly 85.7 percent of total trading, indicating strong concentration among leading platforms even as a broader set of venues handled the remaining activity. The figures show that stablecoin exchange trading remains highly centralized, but enough distributed liquidity has developed to support large daily turnover.
P2P Channels Show Growing China Stablecoin Use
Transaction-monitoring data showed that peer-to-peer transactions accounted for 59.1 percent of China’s crypto market from July 2025 to June 2026. Wallets involved in direct stablecoin transfers increased 43-fold, and roughly $3.1 billion in self-custodied stablecoins supported about $104.1 billion in transfers during the period. The findings suggest growing payment-related use of dollar-denominated digital assets despite formal restrictions, with individuals and smaller businesses using decentralized channels to move value. The high turnover relative to stablecoin balances indicates rapid reuse of funds for payments and settlement. The pattern also raises compliance questions about how self-custody, off-exchange transfers, and P2P networks are monitored or regulated.
XT Labs Focuses on Stablecoin Merchant Settlement
At XT Exchange’s anniversary X Space, XT Labs head Aaron.J argued that stablecoin payments become useful for businesses only when funds can be converted, spent, and reconciled after the initial receipt. He identified practical obstacles that can deter merchants from repeated use: paying wages and suppliers in local currency, integrating receipts into accounting systems, and managing fees and settlement timing. Those constraints matter because a merchant that receives a stablecoin but cannot quickly convert it into usable operating currency faces friction that can outweigh the benefits of faster settlement. XT Labs framed these gaps as an opportunity to build merchant payment infrastructure that connects stablecoin receipts to everyday fiat operations, including payout rails, accounting, and reconciliation.
USDT-to-Monero Swaps Highlight Privacy Demand
Tether’s USDT remains a widely used payment asset because exchanges, freelancers, and traders often settle or hold funds in it, but its transfers are publicly traceable on blockchains such as Tron and Ethereum. Some users therefore convert part of their USDT into Monero for privacy, even though many large exchanges have delisted XMR or require identity verification. One practical route described is a no-account instant swap service: users send USDT on Tron or Ethereum to a one-time deposit address and receive XMR in a self-custody Monero wallet. Tron-based swaps are usually faster and cheaper, while Ethereum gas fees are higher. The guidance also recommends privacy practices such as using fresh Monero subaddresses.
Listed Banks Gain Tokenization and Stablecoin Exposure
Halyk Bank of Kazakhstan, Adyen, and Erste Group Bank are gaining investor attention for potential exposure to tokenization and stablecoin infrastructure through payments, custody, and settlement services. Halyk’s regional banking role, Adyen’s merchant checkout capabilities, and Erste’s cross-border payment networks across Central and Eastern Europe give each listed company a platform where tokenized deposits and regulated stablecoin rails could influence fee income, risk management, and margins. The argument is not that these firms have fully migrated to stablecoin settlement, but that they are positioned to benefit from digital settlement shifts. Regulatory and technology changes could reshape how value accrues within payments, treasury, and correspondent-banking relationships.
Outlook
Overall, the next phase of digital-currency markets will be defined by institutional rails rather than retail speculation. Central banks and regulators are separating wholesale settlement, tokenized securities, and consumer stablecoin use, while exchanges, issuers, and banks adjust to reserve, tax, and data rules. The central tension is between faster 24/7 payment and the need for finality, privacy, and compliance. Expect continued expansion of deposit-token pilots, stablecoin merchant infrastructure, and cross-border workstreams, with Solana, DEX liquidity, and APAC adoption serving as leading market signals.