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Tag: stablecoin

  • Deel Empowers Global Contractors with New Stablecoin Wallet Amid Currency Volatility

    Deel Empowers Global Contractors with New Stablecoin Wallet Amid Currency Volatility

    Deel, the global workforce management company, is set to intensify its focus on digital assets as it unveils a stablecoin wallet. This innovative solution is intended to support contractors in emerging economies by maintaining the value of their income, providing rewards, and allowing global expenditure without having to leave the platform.

    The company began launching the digital wallet, which is dollar-backed, in Latin America. However, plans are afoot to extend this service to the Middle East, Africa, and the Asia-Pacific region. This forms the latest part of Deel’s broader plan to incorporate stablecoins into its global payment infrastructure. The company already enables contractors to withdraw their earnings in stablecoins and allows businesses to fund payrolls directly from stablecoin reserves. The new wallet enhances these features, permitting contractors to manage and hold digital dollar balances within their Deel accounts.

    Addressing the Issue of Currency Instability

    Deel’s recent effort addresses an increasing issue for workers in countries experiencing persistent inflation and currency devaluation. In nations such as Argentina, Ukraine, and Turkey, local currencies have seen significant fluctuations, which have eaten into the purchasing power of salaries and freelancer earnings.

    The company reports a spike in demand for dollar-pegged earnings. A case in point is Argentina, where 85 percent of contractors using the platform elected to receive payments in US dollars in 2025 instead of the local currency.

    Prior to this, contractors seeking to conserve their earnings’ value often had to transfer funds through a range of crypto platforms, foreign exchange providers, or financial applications. Deel contends that incorporating a stablecoin wallet directly into its ecosystem streamlines this procedure.

    Benefiting from the Dollar Within the Deel Ecosystem

    The wallet permits contractors to hold balances in DLUSD, Deel’s in-house dollar-pegged digital balance, which is designed to maintain parity with the US dollar and can be redeemed within the platform.

    Additionally, users can choose to participate in a rewards program backed by decentralized finance infrastructure. The company states that rewards accumulate automatically without lock-up periods, and balances remain accessible for withdrawal at any moment.

    Later this month, Deel intends to launch the Deel Card, enabling contractors to spend their stablecoin balances globally.

    The new service is supported by a combination of crypto and payment providers from the larger Stripe ecosystem. According to Deel, the wallet utilizes Bridge’s issuance infrastructure for DLUSD creation, while Privy delivers the wallet layer. Rewards are produced through the decentralized finance protocol Morpho and managed by infrastructure provider Sentora.

    Despite the crypto infrastructure that supports the service, Deel emphasizes that users deal with a simple dollar balance rather than blockchain wallets or token management tools.

    Questions & Answers

    What is the purpose of Deel’s stablecoin wallet?

    The stablecoin wallet is designed to help contractors in emerging markets maintain the value of their earnings, earn rewards, and spend globally without leaving the platform.

    How does Deel’s stablecoin wallet work?

    The wallet allows contractors to hold balances in DLUSD, Deel’s internal dollar-denominated digital balance. Users can also opt into a rewards program that accrues rewards automatically without lock-up periods.

    What is Deel’s future plan for its stablecoin wallet?

    Deel plans to introduce the Deel Card, which will enable contractors to spend their stablecoin balances globally. This move is part of Deel’s broader strategy to integrate stablecoins across its global payments infrastructure.

  • HSBC Breaks New Ground with Hong Kong’s First Bank-Issued Stablecoin

    HSBC Breaks New Ground with Hong Kong’s First Bank-Issued Stablecoin

    The Hongkong and Shanghai Banking Corporation Limited, a subsidiary of HSBC, has been granted a license to issue stablecoins by the Hong Kong Monetary Authority (HKMA), marking a significant foray into the regulated digital asset space. The bank intends to introduce a Hong Kong dollar-denominated stablecoin by the latter half of 2026, becoming one of the first major global lenders to issue a regulated digital currency for retail use within the city.

    Fully Backed, Regulated Digital Currency

    HSBC has revealed that each unit of the upcoming stablecoin will be fully backed by high-quality liquid assets stored in segregated accounts. This structure is designed to preserve price stability and guarantee redemption at par value. Notably, the bank has emphasized its commitment to rigorous financial crime compliance standards, in line with regulators’ increased focus on security and transparency in digital assets. This development comes amidst Hong Kong’s efforts to fast-track its position as a premier hub for digital finance. This is apparent in the HKMA’s regulatory framework, geared towards legitimizing stablecoins while simultaneously mitigating systemic risks.

    Integration Into Everyday Banking

    HSBC’s stablecoin will be directly incorporated into two of their most popular platforms: PayMe, the bank’s widely-used peer-to-peer payment application, and the HSBC Hong Kong mobile banking application. This move indicates a strategic push towards integrating digital assets into mainstream financial activities, opposed to treating them as niche investment products. PayMe currently boasts over 3.3 million users, while active users on the HSBC HK App have risen by 20% year-on-year, following a recent redesign.

    Questions & Answers

    What is the purpose of the stablecoin that HSBC plans to issue?
    The objective of the stablecoin is to integrate digital assets into mainstream financial activities. This will be achieved by incorporating the stablecoin into HSBC’s most popular platforms, PayMe and the HSBC Hong Kong mobile banking application.

    How will the HSBC stablecoin maintain its value?
    Each unit of the stablecoin will be fully backed by high-quality liquid assets held in segregated accounts. This structure is designed to maintain price stability and ensure redemption at par value.

    How is HSBC’s move to issue a stablecoin significant?
    HSBC’s move to issue a stablecoin marks a significant step into the regulated digital asset space. It positions the bank as one of the first major global lenders to issue a regulated digital currency for retail use, signifying a strategic shift in the financial industry towards digital finance.

  • Forrester Predicts Imminent Bust for Majority of APAC Stablecoin Ventures in 2026

    Forrester Predicts Imminent Bust for Majority of APAC Stablecoin Ventures in 2026

    In the coming year, the majority of stablecoin launches in Asia are predicted to fail, according to recent projections from research and advisory firm Forrester. In their 2026 Payments Predictions report, they estimate that 80% of local stablecoin launches in Asia Pacific will not succeed. The report cites several reasons for this projected failure, including a lack of practical uses, high compliance costs, and competition from Central Bank Digital Currencies (CBDCs) and tokenized deposits.

    The Future of Stablecoins in Asia

    Forrester’s predictions suggest that stablecoins pegged to the US dollar will continue to dominate the global supply. This is anticipated to occur as regional banks and regulatory authorities prioritize the development of scalable alternatives such as mBridge, ISO 20022, and CBDCs.

    However, stablecoins as a whole are not expected to find scalable use cases within the retail payments sector during 2026. This is due to several factors, including a poor user experience, complex infrastructure requirements, trust issues, and competition from existing digital payment options. The firm proposes that there may be more practical applications for stablecoins in the realms of B2B cross-border payments and the crypto-native economy.

    Predictions on AI Agents

    In addition to their projections on stablecoins, Forrester has also predicted trends for artificial intelligence (AI) agents. They anticipate that “true agentic payment” – transactions executed autonomously by AI – will make its debut in the B2C space in 2026. However, this technology is expected to remain experimental due to technical challenges and issues around consumer trust. Widespread implementation is predicted to start in 2027.

    In the B2B sector, AI agents are forecasted to execute one-third of all payments, as the technology can effectively address complexities in associated processes like invoicing and accounts payable.

    Senior Analyst at Forrester, Meng Liu, remarked, “Agentic and stablecoin payments are set to reshape global payment ecosystems by 2026, introducing diverse standards, protocols, business models, and blockchains that will drive significant fragmentation.”

    Questions & Answers

    Why are most stablecoin launches in Asia projected to fail in 2026?
    Forrester cites reasons such as lack of utility, high compliance costs, and competition from Central Bank Digital Currencies and tokenized deposits.

    What is the future outlook for stablecoins in retail payments?
    Forrester predicts that stablecoins will not find scalable use cases for retail payments in 2026 due to a range of challenges including poor user experience and trust issues.

    What are the predictions around AI agents in the B2B sector?
    In the B2B sector, AI agents are expected to handle one-third of all payments by resolving complexities in adjoining processes like invoicing and accounts payable.

  • Japan’s First Stablecoin: What It Means for Government Bond Demand and the Future of Finance

    Japan’s First Stablecoin: What It Means for Government Bond Demand and the Future of Finance

    Japan is gearing up for a significant financial innovation with plans to introduce its first stablecoin by late 2025. This move, while groundbreaking, is not predicted to shake up the dynamics of Japanese government bonds significantly. According to Bank of America (BofA) Global Research, the Financial Services Agency (FSA) is preparing to greenlight this JPY-denominated stablecoin in the autumn, which will be pegged to the country’s legal tender.

    JPYC’s Financial Strategy

    The fintech company expected to spearhead this initiative, JPYC, aims to maintain the stability of the new digital currency at JPY1 by holding a mix of highly liquid assets, including deposits and government bonds. While the launch is certainly a pivotal moment for Japan’s financial landscape, BofA’s analysis suggests that the immediate effect on the supply and demand for Japanese government bonds will be minimal.

    Stablecoins and Japanese Government Bonds

    BofA Global Research notes that the upcoming stablecoin launch is projected to result in a modest increase in annual issuances of Japanese government bonds — estimated at around $1.88 billion (JPY 277.7 billion). This forecast is based on JPYC’s ambitious target of issuing JPY1 trillion in stablecoins over the next three years, with approximately 20% of this amount reportedly backed by cash and deposits, and a substantial 80% by JGBs. However, this increase pales in comparison to the monthly JGB issuance from the Ministry of Finance, which ranges between JPY11 trillion and JPY12 trillion.

    Outlook for Japanese Stablecoins

    Despite several other Japanese companies reportedly eyeing the stablecoin market, the current sentiment remains cautiously optimistic. BofA Global Research emphasizes that, at least for now, the emergence of stablecoins in Japan is not forecasted to spur any significant demand for JGBs. As the financial sector watches closely, the stablecoin landscape could open new avenues for digital finance in Japan — a realm where innovation often dances cheek to cheek with tradition.

    Questions & Answers

    What is the expected launch date for Japan’s first stablecoin?
    Japan’s first stablecoin is set to launch in late 2025, pending authorization from the Financial Services Agency.

    How does JPYC plan to ensure the stability of its stablecoin?
    JPYC intends to maintain the stablecoin’s value at JPY1 by backing it with a mix of liquid assets, including cash, deposits, and government bonds.

    Will the introduction of stablecoins significantly impact Japanese government bond demand?
    According to Bank of America, while the launch may slightly increase annual JGB issuances, it is not expected to significantly affect supply and demand dynamics for Japanese government bonds.

  • Australian Banks Join Forces to Explore Tokenised Asset Settlement Innovations

    Australian Banks Join Forces to Explore Tokenised Asset Settlement Innovations

    The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCC) have officially unveiled the industry participants for their tokenised asset settlement research initiative, marking a significant step towards modernizing Australia’s financial landscape.

    Leading Banks Join Forces for Project Acacia

    Among the key players in this ambitious endeavor are the ANZ, Commonwealth Bank of Australia (CBA), and Westpac, who will spearhead various use cases as part of Project Acacia. This groundbreaking project is designed to examine how innovative forms of digital money and supportive infrastructure can facilitate the growth of Australia’s wholesale tokenised asset markets, according to a joint statement from the RBA and DFCC.

    A Closer Look at the Use Cases

    The research project is set to explore a total of 24 use cases. Out of these, 19 will pilot real monetary and asset transactions, while the remaining 5 will focus on proof-of-concept scenarios involving simulated transactions. The testing phase is scheduled for the latter half of 2025, leading up to an anticipated report detailing the project’s findings in the first quarter of 2026.

    Innovators on Board

    The initiative will also feature a diverse lineup of other lead participants, including the Australian Bond Exchange, Australian Payments Plus, Canvas, Catena Digital, Fireblocks, Forte, Imperium Markets, Northern Trust, NotCentralized, ProspEx, and Zerocap. With such a medley of innovators, one is left wondering if the future of finance will soon resemble a high-tech chess game, where every move is calculated with precision.

    Regulatory Support Accelerates Progress

    In a move to enhance the feasibility of this project, the Australian Securities and Investments Commission (ASIC) has granted regulatory relief to participating entities. This support aims to streamline the testing of tokenised asset transactions, including those utilizing Central Bank Digital Currencies (CBDCs), among select financial institutions over the coming months.

    Embracing a Digital Future

    As Australia stands on the cusp of a transformative era in its financial markets, the outcomes of Project Acacia could have lasting implications for how assets are traded and settled in the digital age, heralding an exciting new chapter for the retail sector.

    Questions & Answers

    What is the primary goal of Project Acacia?
    The main aim of Project Acacia is to explore how different forms of digital money and infrastructure can enhance Australia’s wholesale tokenised asset markets.

    When will the testing of use cases take place?
    Testing is scheduled for the latter half of 2025, with project findings expected in the first quarter of 2026.

    Which regulatory body is supporting the project?
    The Australian Securities and Investments Commission (ASIC) is providing regulatory relief to facilitate responsible testing of tokenised asset transactions among participants.

  • Stablecoin Issuer Tether Delivers on Promise

    Stablecoin Issuer Tether Delivers on Promise

    By scaling back its exposure to assets like commercial paper, the company improves its credibility.

    The controversial Tether Holdings completely removed the commercial paper from its reserves. The world’s largest stablecoin issuer reported in a blog post that it has replaced those positions with US government bonds, the majority of its reserves now consisting of Treasury bills, according to the company.

    The stablecoin issuer has long been embroiled in controversy over the status of the reserves used to back the supply of the stablecoin USDT, of which Tether is the issuer. issues. The world’s most traded cryptocurrency has been repeatedly criticized by regulators for not making it clear enough how the reserves backing stablecoin are composed.

    Commercial paper is unsecured, short-term debt issued by a company and is considered less secure and liquid than Treasury bills. Tether previously announced plans to reduce these holdings and has been doing so gradually this year.

    Unlike commercial paper, T-bills are short-term government debt instruments. According to the largest US bank, JP Morgan, Tether and its stablecoin competitors’ share of the T-bill market exceeds that of Warren Buffett’s Berkshire Hathaway holding company.

    According to the blog post, Tether believes removing commercial paper from its reserves will boost confidence in the stablecoin industry. The TerraUSD stablecoin price debacle and the collapse of the Terra Luna ecosystem have taken a second toll on confidence in cryptocurrencies this year.

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