Stablecoins, stablecoins, stablecoins

Tether launches new USAT stablecoin.

Tether will launch a new stablecoin, USAT, fully backed by US Treasuries and fully compliant with the Genius Act. This is remarkable, as Tether has long faced criticism for not adhering to US regulation. With USAT, the company shows it is willing to play by the rules and secure a stronger role in the American market.

By tying the token to Treasuries, Tether aims to increase trust among institutional investors in the US. This positions USAT as a direct competitor to USDC, which has so far been stronger in America. The launch could significantly reshape the balance of power in the stablecoin market.

Circle and Deutsche Börse join forces.

Circle, the issuer of both USDC and EURC, has partnered with the Deutsche Börse Group, Europe’s largest exchange operator. With this move, Circle instantly becomes a key player in the issuance of euro stablecoins in Europe, a striking development for a US-based company.

That an American firm takes this position underlines how central stablecoins have become for Europe’s financial infrastructure. Through this partnership, Circle gains direct access to one of the most powerful links in Europe’s capital markets, securing a strong foothold on the continent.

Banks push to revise Genius Act.

In the US, a new debate has erupted around the Genius Act, the law passed earlier this year to regulate the stablecoin market. When the law was drafted, banks tried to block stablecoin issuers from paying interest on stablecoins, fearing this would drain deposits from the banking system.

However, after its adoption a loophole emerged: crypto firms like Coinbase distribute rewards through structures that keep the issuer itself untouched, while still being fully compliant with the Genius Act. Banks now want the law revised to close this gap. The debate highlights how strongly banks feel the competition from stablecoins. In the end, this may benefit consumers, as banks are forced to innovate and offer better services.