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Bitwise launches non-custodial DeFi vault as asset managers move on-chain

cryptonews — Tue, 27 Jan 2026 09:24:50 +0000

The initial strategy focuses on USDC stablecoin lending through overcollateralised pools on Morpho.
Bitwise said the strategy currently targets returns of up to 6%, depending on market conditions.
The launch signals a broader shift by asset managers toward building and managing on-chain infrastructure.

Bitwise has taken a clear step beyond exchange-traded products by launching its first non-custodial on-chain yield strategy, signalling a deeper push into decentralised finance infrastructure.

The firm confirmed the launch on Jan. 26, positioning the new product as an on-chain vault curated by Bitwise but executed entirely through smart contracts.

Users retain control of their assets at all times, while Bitwise oversees how capital is allocated across decentralised lending markets.

The move highlights how traditional crypto asset managers are increasingly experimenting with direct DeFi exposure rather than relying solely on regulated wrappers.

Non-custodial vault structure

The new product is structured as a non-custodial vault, meaning users do not transfer control of their funds to Bitwise or to any centralised intermediary.

Instead, assets remain in user-controlled wallets and are deployed on-chain according to predefined rules.

Bitwise manages the strategy parameters, but all activity takes place transparently on public blockchains.

This setup is designed to appeal to investors who want exposure to on-chain yield without sacrificing custody.

All positions are visible on-chain, allowing users to track where funds are deployed in real time.

The firm has framed this as a way to combine professional portfolio management with the core principles of decentralised finance.

Stablecoin yield focus

The initial vault focuses on stablecoin lending, starting with USD Coin USDC.

Deposited funds are allocated to overcollateralised lending pools, where borrowers must post excess collateral to secure loans.

This structure is intended to limit counterparty risk compared with undercollateralised lending models.

The strategy is built on Morpho, a decentralised lending protocol that allows asset managers to design customised lending strategies while relying on standardised smart contracts.

According to Bitwise, the vault currently targets returns of up to 6% annually, depending on market conditions.

The firm has emphasised that yields will fluctuate based on on-chain supply and demand rather than being fixed or guaranteed.

Risk management on-chain

Bitwise said strategy design and ongoing risk oversight are led by Jonathan Man, CFA, who heads the firm’s multi-strategy solutions group.

The vault draws on Bitwise’s existing research, trading, and risk infrastructure, which has been developed through years of managing crypto investment products.

Smart contract execution ensures that positions are managed automatically according to predefined rules, while transparency allows users to independently verify activity.

Bitwise has not disclosed performance data so far, noting that the vault is still in its early stages.

Asset managers eye DeFi infrastructure

The Morpho vault represents Bitwise’s first direct move into non-custodial DeFi strategies.

Until now, the firm has primarily been associated with exchange-traded products and research aimed at traditional investors.

This launch marks a shift toward building and managing on-chain tools rather than offering exposure solely through off-chain products.

Morpho has gained traction as a platform for professional-grade DeFi strategies, enabling managers to deploy capital programmatically while maintaining on-chain transparency.

Bitwise has said it views on-chain vaults as a growing segment of the crypto market and plans to explore additional strategies over time.

While the firm has not shared timelines for expansion, it has described the vault as an early step in a longer on-chain roadmap.

As more capital flows into blockchain-based finance, Bitwise’s move suggests that asset managers are increasingly treating DeFi as core financial infrastructure rather than a peripheral experiment.

The post Bitwise launches non-custodial DeFi vault as asset managers move on-chain appeared first on CoinJournal.

Bitwise launches non-custodial DeFi vault as asset managers move on-chain

Source: https://coinjournal.net/news/bitwise-launches-non-custodial-defi-vault-as-asset-managers-move-on-chain/ ***

Pakistan signs deal to explore WLFI-linked stablecoin for payments

cryptonews — Wed, 14 Jan 2026 14:27:37 +0000

Pakistan signs MoU with World Liberty affiliate to explore stablecoin-based cross-border payments.
USD1 stablecoin may integrate with Pakistan’s regulated payments system as digital finance efforts expand.
Deal highlights Pakistan’s push to become a key digital payments hub amid rising global stablecoin adoption.

Pakistan’s federal government has signed a memorandum of understanding (MoU) with SC Financial Technologies LLC, an affiliated entity of World Liberty Financial, to explore using World Liberty’s stablecoin for cross-border payments.

The announcement was made by the Pakistan Virtual Asset Regulatory Authority (PVARA), which described the agreement as enabling “dialogue and technical understanding around emerging digital payment architectures.”

The MoU comes amid a visit to Pakistan by Zach Witkoff, co-founder and chief executive of World Liberty and son of US special envoy Steve Witkoff.

During his visit, Witkoff met senior Pakistani stakeholders to discuss how countries are approaching secure, compliant, and transparent digital payment infrastructure, including innovations in cross-border settlement and foreign exchange processes.

“Our focus is to stay ahead of the curve by engaging with credible global players, understanding new financial models, and ensuring that innovation, where explored, is aligned with regulation, stability, and national interest,” said Finance Minister Muhammad Aurangzeb.

Industry observers note that this marks World Liberty Financial’s second engagement with Pakistan, reinforcing the country’s positioning as a potential early-stage partner for exploring new digital payment models, including the USD1 stablecoin.

The MoU builds on earlier efforts, including a Letter of Intent signed in April with the Pakistan Crypto Council, which laid the groundwork for knowledge-sharing and ecosystem-level dialogue around emerging financial technologies.

Stablecoin integration and global finance implications

Under the agreement, SC Financial Technologies will work with Pakistan’s central bank to integrate the USD1 stablecoin into a regulated digital payments structure.

This would allow the token to operate alongside Pakistan’s own digital currency infrastructure, potentially providing a new framework for cross-border settlement.

Stablecoins—digital tokens typically pegged to the US dollar—have expanded rapidly in global markets.

Under President Donald Trump, federal regulations in the United States have been widely viewed as supportive of the sector.

Countries worldwide are increasingly examining how stablecoins can complement existing payment systems, with regulatory compliance becoming a key consideration for global adoption.

World Liberty’s engagement with sovereign states has already demonstrated impact in other markets.

Reuters previously reported that in May, the state-controlled Abu Dhabi investment company MGX used World Liberty’s stablecoin to acquire a $2 billion equity stake in Binance, the world’s largest cryptocurrency exchange.

Pakistan’s growing digital finance ecosystem

Pakistan has actively pursued initiatives to strengthen its digital finance ecosystem.

The PVARA highlighted that the country is emerging as a compelling frontier market for digital payments, supported by over $38 billion in annual remittance inflows, a rapidly growing digital economy, an estimated 40 million crypto users, and an annual trading volume of up to $300 billion in digital assets.

Recent regulatory steps include the issuance of No Objection Certificates (NOCs) to Binance and HTX, allowing both platforms to initiate local incorporation in under five months—a faster timeline than in many other jurisdictions.

The visits of Changpeng Zhao, founder of Binance, and Justin Sun, founder of TRON, reflect ongoing international interest in Pakistan’s regulatory framework and growing digital finance market.

PVARA stated that with sustained global engagement and a structured, regulation-first approach, Pakistan is increasingly viewed as a market to watch in the evolution of digital finance, particularly as the country explores new models for cross-border payments and stablecoin integration.

Pakistan has been exploring digital currency initiatives as it looks to reduce cash usage and improve cross-border payments such as remittances, which are a key source of foreign exchange for the country.

In July, Pakistan’s central bank governor said the institution was preparing to launch a pilot for a digital currency, and that it was finalising legislation to regulate virtual assets.

The post Pakistan signs deal to explore WLFI-linked stablecoin for payments appeared first on CoinJournal.

Pakistan signs deal to explore WLFI-linked stablecoin for payments

Source: https://coinjournal.net/news/pakistan-signs-deal-to-explore-wlfi-linked-stablecoin-for-payments/

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research (DYOR).

Tether freezes $182M in USDT, highlighting centralized control in stablecoins

cryptonews — Mon, 12 Jan 2026 15:35:50 +0000

The action was detected by Whale Alert and ranks among the largest single-day USDT freezes.
Tether has frozen over $3 billion in assets from more than 7,000 addresses since 2023.
Stablecoins now account for the majority of illicit crypto activity tracked by Chainalysis.

Tether, the issuer of the world’s largest stablecoin, froze more than $180 million worth of USDT within 24 hours, underscoring the growing role of centralized control and law-enforcement coordination in the stablecoin market.

The event stands out not only for its size but also for what it reveals about issuer-level control in the crypto economy.

As regulators scrutinise digital dollars more closely, the mechanics behind this freeze offer insight into how compliance now shapes on-chain liquidity.

Large-scale freeze on Tron

On Jan. 11, Tether froze roughly $182 million worth of USDT held across five Tron-based wallets in a single day.

The action was flagged by on-chain tracker Whale Alert, which showed individual wallet balances ranging from about $12 million to nearly $50 million.

The timing and concentration of the freezes marked it as one of the largest single-day USDT enforcement events recorded on the Tron network.

The wallets were not drained or moved.

Instead, the tokens were locked at the contract level, making them unusable while remaining visible on-chain.

This approach is consistent with how fiat-backed stablecoins are restricted when issuers respond to external requests.

Enforcement-linked coordination

While Tether did not publish a detailed explanation, the freezes appear linked to cooperation with US authorities, including the Department of Justice and the Federal Bureau of Investigation.

Historically, similar actions have followed investigations tied to scams, hacking incidents, sanctions breaches, or other forms of illegal crypto usage.

Tether maintains administrative control through special keys embedded in the USDT smart contracts it issues.

These keys allow the company to halt or freeze tokens at the issuer level.

Such functionality is central to how stablecoin operators comply with anti-money-laundering rules and legal enforcement demands, particularly when funds are suspected of being linked to criminal activity.

Scale of past USDT freezes

Data from analytics firm AMLBot places the Jan. 11 action in a broader context.

Between 2023 and 2025, Tether froze more than $3 billion in assets spread across over 7,000 addresses.

That cumulative figure far exceeds comparable actions by other stablecoin issuers, underlining USDT’s dominant role in enforcement-led interventions.

Tron has become one of the largest settlement layers for USDT, with more than $80 billion in circulation on the network.

Its low fees and fast settlement times have driven adoption, particularly in emerging markets and high-frequency trading environments.

At the same time, this scale makes Tron-based USDT a focal point for monitoring illicit flows.

Centralisation and market implications

The episode has renewed debate around centralised control in stablecoins.

Unlike decentralised assets such as Bitcoin, USDT can be paused or frozen by its issuer when legal pressure is applied.

This structural difference has practical consequences for users who rely on stablecoins as cash equivalents.

According to Chainalysis, stablecoins accounted for around 84 % of illicit crypto activity by the end of 2025.

The data reflects how dollar-pegged tokens have become a primary medium in fraud cases and sanctions-related transfers.

As enforcement actions grow in size and frequency, issuer-controlled stablecoins continue to sit at the intersection of regulatory compliance and decentralised finance.

The post Tether freezes $182M in USDT, highlighting centralized control in stablecoins appeared first on CoinJournal.

Tether freezes $182M in USDT, highlighting centralized control in stablecoins

Source: https://coinjournal.net/news/tether-freezes-182m-in-usdt-highlighting-centralized-control-in-stablecoins/

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research (DYOR).

South Korea moves to reopen corporate crypto investing after long freeze

cryptonews — Mon, 12 Jan 2026 15:35:45 +0000

Companies would be limited to investing up to 5% of their equity capital.
Only top market cap tokens on major regulated exchanges would be eligible.
Stablecoin inclusion remains under regulatory discussion.

South Korea is preparing to reopen its digital asset market to corporate money, marking a major shift after nearly a decade of tight restrictions.

Financial regulators are updating long-standing guidelines that have barred companies from holding crypto assets since 2017, a period defined by concerns over money laundering and market instability.

The proposed changes would allow listed companies and professional investors to allocate a limited portion of their balance sheets to cryptocurrencies.

The move signals a recalibration of policy as Seoul seeks to strengthen its digital finance ecosystem while keeping risks contained through strict guardrails.

Corporate access returns

According to a report by the Financial Services Commission, legal entities will be permitted to invest up to 5% of their equity capital in crypto assets.

The information was reported by the Seoul Economic Daily.

Regulators are expected to release the final version of the guidelines in January or February.

Once in place, companies will be able to engage in virtual currency transactions for investment and financial purposes, ending a nine-year prohibition.

The FSC first outlined a phased easing of corporate crypto rules in February 2025 and shared the latest draft with its crypto working group on Jan. 6.

The approach reflects a gradual opening rather than a wholesale liberalisation.

Tight limits on assets

The planned framework places clear limits on where and how companies can invest.

Corporate purchases will be restricted to the top 20 crypto assets by market capitalisation, narrowing exposure to the most liquid and widely traded tokens.

Transactions will also be confined to South Korea’s five largest regulated exchanges, reinforcing oversight and compliance standards.

The inclusion of dollar-pegged stablecoins remains unresolved.

The report said regulators are still debating whether assets such as Tether’s USDT should be permitted under the new rules.

These conditions are designed to address the same financial crime risks that prompted the original ban, while recognising that the domestic market has matured since 2017.

Market impact expectations

The reopening of corporate access could unlock significant capital flows into crypto markets.

Seoul Economic Daily noted that the scale of potential investment runs into tens of trillions of won.

By way of illustration, the report pointed to internet giant Naver, which holds around 27 trillion won in equity capital.

Under the proposed cap, the company could theoretically deploy funds equivalent to roughly 10,000 Bitcoin.

Beyond direct market inflows, the change could alter corporate strategy.

Large South Korean firms have previously invested in digital assets overseas to avoid domestic restrictions.

Easing local rules may redirect that activity back home, supporting blockchain startups, digital asset treasuries, and related infrastructure.

Broader digital currency strategy

The corporate crypto shift sits alongside a wider push into digital currencies.

The government has outlined plans to execute 25% of national treasury transactions through a central bank digital currency by 2030 as part of its 2026 Economic Growth Strategy.

The government also plans to introduce a licensing regime for stablecoin issuers.

Under the proposal, issuers would need to maintain 100% reserve backing and provide legally guaranteed redemption rights for users.

Together, these measures suggest South Korea is seeking to integrate crypto assets, stablecoins, and a CBDC into a single regulatory framework rather than treating them as isolated experiments.

The post South Korea moves to reopen corporate crypto investing after long freeze appeared first on CoinJournal.

South Korea moves to reopen corporate crypto investing after long freeze

Source: https://coinjournal.net/news/south-korea-moves-to-reopen-corporate-crypto-investing-after-long-freeze/

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research (DYOR).

Binance launches gold and silver perpetual futures in expansion beyond crypto

cryptonews — Fri, 09 Jan 2026 08:59:01 +0000

Products listed as XAUUSDT and XAGUSDT are designed to track gold and silver prices onchain.
The contracts operate under FSRA regulation in Abu Dhabi through the ADGM framework.
Other major exchanges already offer precious metals-linked perpetual contracts, reflecting rising demand.

Binance has widened its derivatives suite by adding perpetual futures linked to gold and silver, marking a push beyond purely digital assets.

The move reflects growing demand among crypto-native traders for exposure to traditional safe-haven markets through familiar onchain infrastructure.

By listing precious metals products that trade around the clock and have no expiry date, the exchange is positioning itself at the intersection of commodities and crypto trading.

The launch comes as gold and silver prices have reached fresh records, drawing renewed attention from investors seeking hedges against volatility across global markets.

Precious metals enter crypto derivatives

The exchange said on Thursday that it had launched perpetual futures contracts tied to gold and silver.

The products allow traders to speculate on price movements without holding the underlying metals and without worrying about contract expiration.

Trading is available continuously, mirroring the structure of crypto perpetuals that already dominate derivatives volumes on major exchanges.

The contracts are listed under the symbols XAUUSDT and XAGUSDT. Both are designed to track the market price of gold and silver, respectively.

Instead of physical settlement, positions are settled in Tether’s USDT stablecoin, giving traders onchain exposure to precious metals pricing while remaining within a crypto-based settlement system.

Settlement and market access

By settling the contracts in USDT, Binance is extending the use of stablecoins beyond crypto-native assets into traditional commodity-linked products.

This structure allows traders to gain price exposure without converting funds into fiat currencies or commodity-backed instruments.

It also removes the need for storage, delivery, or custody arrangements associated with physical gold and silver.

The approach highlights how derivatives are being used to mirror traditional financial markets inside crypto trading platforms.

Binance has indicated that additional contracts linked to traditional assets are planned, suggesting that commodities and other non-crypto markets may feature more prominently in future product rollouts.

Regulatory framework in Abu Dhabi

The gold and silver perpetuals are offered through Next Exchange Limited, a Binance entity operating under the Abu Dhabi Global Market framework.

The contracts fall under the supervision of the Financial Services Regulatory Authority, with Binance holding the relevant licences within ADGM.

This regulatory setup is central to Binance’s effort to expand its derivatives catalogue while maintaining compliance in key jurisdictions.

Abu Dhabi has also become relevant for stablecoin usage, with USDT approved for use by regulated companies in the emirate, even as Tether has chosen not to seek authorisation under the European Union’s Markets in Crypto-Assets framework.

Competition and safe haven demand

Binance is not alone in offering precious metals-linked perpetual contracts.

Other exchanges active in this segment include Coinbase, MEXC, BTCC, BingX, and Bybit, although Bybit currently limits its offering to gold-linked perpetuals.

The growing number of platforms listing such products points to rising interest in blending commodity exposure with crypto derivatives trading.

The timing of Binance’s launch aligns with a period of heightened demand for safe-haven assets.

Both gold and silver have recently climbed to new all-time highs, driven by investor appetite for assets perceived as stores of value.

By enabling trading in these markets via USDT-settled perpetuals, Binance is tapping into that demand while keeping activity within its existing derivatives ecosystem.

The post Binance launches gold and silver perpetual futures in expansion beyond crypto appeared first on CoinJournal.

Binance launches gold and silver perpetual futures in expansion beyond crypto

Source: https://coinjournal.net/news/binance-launches-gold-and-silver-perpetual-futures-in-expansion-beyond-crypto/

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research (DYOR).

Trump-Linked World Liberty seeks US trust bank charter for Stablecoin USD1

cryptonews — Thu, 08 Jan 2026 08:48:20 +0000

The proposed trust bank would operate solely within stablecoin services under OCC supervision.
USD1 has reached over $3.3 billion in circulation within a year of launch.
The stablecoin is fully backed by US dollars and short-term US Treasury assets.

World Liberty Financial, a crypto firm linked to the Trump family, has applied for a national trust bank charter, a move that would place its stablecoin issuance and custody activities within the traditional banking regulatory framework.

USD1’s circulation rapidly increased to more than $3.3 billion within a year of its issuance.

Trust bank filing

According to filings with the US Office of the Comptroller of the Currency, World Liberty Financial has applied to launch World Liberty Trust Company through its subsidiary WLTC Holdings LLC.

The proposal outlines a national trust bank designed solely for stablecoin-related activity.

The trust bank would be authorised to issue, redeem, and custody USD1. It would not offer traditional lending or retail banking services.

Instead, it would operate within the long-established OCC trust bank framework, which requires strict asset segregation, independent reserve oversight, and regular examinations.

If approved, World Liberty Financial would operate under the same federal supervision applied to traditional trust institutions.

Stablecoin services

World Liberty Trust Company plans to offer three core services under US regulatory supervision.

These include minting and redeeming USD1, enabling conversion between US dollars and the stablecoin, and providing custody for USD1 and other approved stablecoins.

At launch, minting and redemption are expected to be fee-free.

All services would follow anti-money laundering rules, sanctions screening, and enhanced security controls.

The structure is also designed to align with the proposed GENIUS Act, which aims to establish clear federal standards for stablecoin issuers operating in the US.

USD1 growth

USD1 has expanded quickly since its launch, reaching about $3.3 billion in circulation within its first year. This growth places it among the fastest-scaling stablecoins so far.

The token is fully backed by US dollars and short-term US Treasury assets held with regulated financial institutions.

The stablecoin already operates across multiple blockchains, including Ethereum, Solana, BNB Smart Chain, TRON, Aptos, and AB Core.

It is also listed on major exchanges such as Binance and Coinbase, making it accessible to both retail and institutional users.

Regulatory pathway

If the OCC grants approval, the trust bank would initially focus on institutional clients seeking regulated stablecoin issuance and custody services.

The review process is expected to be detailed, covering capital adequacy, compliance infrastructure, and risk management systems.

The move follows earlier steps by US regulators to engage with crypto firms.

In December last year, the OCC issued conditional approvals to firms including Fidelity Digital Assets, Ripple, Paxos, and Circle.

More recently, Crypto.com and Coinbase have also submitted applications, reflecting a broader industry push toward federally regulated crypto banking structures.

The post Trump-Linked World Liberty seeks US trust bank charter for Stablecoin USD1 appeared first on CoinJournal.

Trump-Linked World Liberty seeks US trust bank charter for Stablecoin USD1

Source: https://coinjournal.net/news/trump-linked-world-liberty-seeks-us-trust-bank-charter-for-stablecoin-usd1/

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research (DYOR).

Stablecoins, Base and ‘everything exchange’: a look inside Coinbase’s strategy to expand in 2026

cryptonews — Fri, 02 Jan 2026 14:17:14 +0000

Stablecoins and the Base network sit at the core of its plans through 2026.
The strategy places Coinbase closer to retail brokerages and derivatives platforms.
Security and support concerns remain a constraint as the platform broadens.

Coinbase is entering 2026 with a platform that looks increasingly different from a traditional crypto exchange.

The company is placing greater emphasis on stablecoins, its Ethereum layer-2 network Base, and a wider range of trading products that stretch well beyond digital tokens.

The shift reflects how crypto platforms are adapting as growth in spot trading cools and competition intensifies.

Rather than positioning itself only as a gateway to cryptocurrencies, Coinbase is aligning its business around broader financial access, with trading, payments, and onchain activity increasingly converging inside a single ecosystem.

Platform strategy shift

In a New Year’s post, Brian Armstrong reiterated Coinbase’s ambition to build what it calls an “everything exchange.”

The strategy focuses on expanding product lines so users can trade and interact with multiple asset classes from one interface.

That direction was formalised at the company’s year-end conference in December, where Coinbase rolled out stock trading and prediction markets.

These launches marked a clear move beyond cryptocurrencies and into areas traditionally dominated by retail brokerages and derivatives platforms.

Coinbase executives have framed the rollout of stock trading on the main app as a key step toward enabling round-the-clock access to markets, with crypto, equities, and exchange-traded funds sitting side by side.

Expansion beyond crypto

Coinbase’s product push is not limited to its exchange. The company has rebranded its wallet as an “everything app,” adding social networking features and deeper onchain functionality.

The aim is to keep users active across more use cases, rather than relying solely on trading volumes.

The company has also launched onchain prediction markets in partnership with Kalshi, allowing users to participate in markets tied to real-world events.

Alongside this, Coinbase has flagged plans for perpetual futures that would cover both crypto assets and stocks.

These additions move the platform further into direct competition with firms that operate across equities, derivatives, and commodities, rather than only crypto-native rivals.

Stablecoins and Base

Stablecoins form a central part of Coinbase’s longer-term roadmap.

The company has described them as essential financial infrastructure, particularly for cross-border payments, payroll, and settlement.

Armstrong has said banks are likely to seek interest-bearing stablecoin products over time, underlining Coinbase’s view that stablecoins will play a growing role in mainstream finance.

Base, Coinbase’s Ethereum layer-2 network, is positioned as another pillar of this strategy.

The network is designed to support consumer applications, creators, and onchain services that can scale beyond Ethereum’s main chain.

However, Base’s handling of creator coins has attracted criticism from some developers, who argue the approach risks prioritising viral growth while the company promotes creators as a key onboarding channel.

The post Stablecoins, Base and ‘everything exchange’: a look inside Coinbase’s strategy to expand in 2026 appeared first on CoinJournal.

Stablecoins, Base and ‘everything exchange’: a look inside Coinbase’s strategy to expand in 2026

Source: https://coinjournal.net/news/stablecoins-base-and-everything-exchange-a-look-inside-coinbases-strategy-to-expand-in-2026/

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South Korea delays digital asset law as stablecoin oversight divides regulators

cryptonews — Wed, 31 Dec 2025 05:29:17 +0000

South Korea delays its Digital Asset Basic Law to 2026 amid disputes over stablecoin oversight authority.
Lawmakers pause crypto legislation as regulators clash on who should control stablecoin reserves and enforcement.
Regulatory uncertainty grows as Korea weighs investor protection against monetary control and innovation.

South Korea’s push to formalise crypto regulation has slowed again, with authorities confirming that the Digital Asset Basic Law will not be submitted until 2026.

The delay highlights deep divisions over how stablecoins should be supervised in one of Asia’s most active digital asset markets, even as crypto products become more tightly linked to the wider financial system.

The setback does not reflect a lack of interest in regulation.

Instead, it underlines how complex stablecoin oversight has become for policymakers, balancing innovation, financial stability, and monetary control.

With no agreement yet on who should hold ultimate authority, lawmakers have opted to pause rather than advance a bill with unresolved structural gaps.

Purpose of the proposed law

The Digital Asset Basic Law is intended to act as the backbone of South Korea’s crypto framework.

A core aim is investor protection, achieved by holding digital asset operators to stricter legal standards than before.

One of the most significant proposals is the introduction of no-fault liability, which would make operators responsible for user losses even if negligence cannot be proven.

Another pillar of the bill focuses on reducing systemic risk from stablecoins. The draft requires issuers to maintain reserves exceeding 100% of the circulating supply.

These reserves must be held at banks or approved institutions, with clear separation from the issuer’s own balance sheet.

The structure is designed to limit contagion risks if a stablecoin issuer fails.

Stablecoins and regulatory control

Stablecoins have emerged as the main fault line in the debate. While regulators broadly agree that stronger oversight is necessary, they remain split on who should enforce reserve rules and supervision.

The Financial Services Commission and the Bank of Korea have yet to align on how responsibilities should be divided.

These disagreements have complicated decisions around licensing, enforcement powers, and the treatment of reserve assets.

Rather than pushing through a compromised framework, authorities have delayed the bill to allow further coordination between financial regulators and monetary authorities.

Market uncertainty grows

The postponement has not triggered an immediate market reaction, but it adds another layer of uncertainty for crypto firms operating in South Korea.

Exchanges, payment providers, and stablecoin issuers continue to expand in an environment where long-term regulatory expectations remain unclear.

Uncertainty can have practical effects.

Firms may slow product launches, delay investment decisions, or consider shifting certain operations to jurisdictions with clearer rules.

For investors, the absence of a completed framework complicates assessments of risk and compliance.

Politics and monetary strategy

Political dynamics are also shaping the timeline. The ruling Democratic Party is now working to merge several lawmaker proposals into a revised digital asset bill.

At the same time, strategic concerns around monetary sovereignty are becoming more prominent.

President Lee Jae Myung has identified a Korean won-backed stablecoin as a national priority, arguing that it could counter the growing dominance of US dollar-linked stablecoins in global crypto markets.

These ambitions increase pressure on regulators to ensure that any framework aligns with broader monetary policy goals.

The delayed Digital Asset Basic Law is meant to represent the second phase of South Korea’s crypto regulation.

The first phase, already in force, targeted unfair trading practices.

The post South Korea delays digital asset law as stablecoin oversight divides regulators appeared first on CoinJournal.

South Korea delays digital asset law as stablecoin oversight divides regulators

Source: https://coinjournal.net/news/south-korea-delays-digital-asset-law-as-stablecoin-oversight-divides-regulators/

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Canada pivots to stablecoins as cornerstone of its digital payments reform

cryptonews — Wed, 05 Nov 2025 19:57:27 +0000

The Bank of Canada will oversee the framework, allocating CA$10 million initially and CA$5 million annually.
The Retail Payment Activities Act will be amended to include stablecoin-related payment services.
Canada’s reforms align with similar regulatory frameworks in the UK, EU and Australia.

Canada’s 2025 federal budget, unveiled on 4 November, places fiat-backed stablecoins at the centre of its plan to modernise the national payments system.

The initiative signals a clear policy shift from research on central bank digital currencies toward regulating private digital assets within the country’s financial framework.

By introducing detailed rules around issuance, redemption and oversight, the government aims to make stablecoins secure, transparent and suitable for daily transactions while safeguarding financial stability.

The Bank of Canada will oversee the framework and integrate stablecoins into the Retail Payment Activities Act.

A regulated path for fiat-backed stablecoins

Under the new framework, issuers will be required to maintain adequate reserves, establish risk management systems and comply with data protection standards.

The legislation also includes national security provisions to uphold the integrity of the financial system and protect consumers.

The Bank of Canada will allocate CA$10 million over two years starting in 2026 to administer the framework, with annual operating costs of CA$5 million to be recovered from regulated issuers.

Amendments to the Retail Payment Activities Act (RPAA) will bring payment service providers handling stablecoin transactions under formal supervision.

Introduced in 2021, the RPAA already regulates both domestic and foreign payment firms in Canada. Its expansion to cover stablecoin use reflects the government’s intention to fold digital currencies into the existing financial oversight structure.

From central bank currency to private innovation

The move marks a turning point in Canada’s digital currency policy. In September 2024, the central bank decided against launching a retail central bank digital currency and shifted its focus to analysing global payment trends.

That decision created a gap that the new stablecoin legislation now addresses.

Officials have acknowledged that reform in Canada has been slower than in other major economies.

The Bank of Canada’s Executive Director of Payments, Ron Morrow, previously cautioned that Canada could fall behind the United Kingdom, Australia and the European Union, all of which already have digital asset frameworks.

By regulating rather than issuing digital assets, Canada is adopting a hybrid model that allows private innovation while maintaining government supervision. This approach is intended to encourage payment innovation without compromising oversight.

Building a modern and secure payment system

The stablecoin framework forms part of a broader payments modernisation plan.

Alongside it, the government plans to advance consumer-driven banking, open data mobility and the Real-Time Rail system, which is expected to enable instant fund transfers by 2026.

For consumers, the reforms promise faster and more reliable transactions and may lower the cost of cross-border payments. For issuers and payment providers, the challenge lies in meeting new compliance requirements while remaining competitive.

The legislation’s emphasis on privacy and national security also signals the government’s intention to build public trust in digital finance as it becomes a mainstream part of the economy.

Toward a digitally integrated financial system

The new stablecoin rules complement existing crypto regulations in Canada, which already require strict compliance from exchanges and trading platforms.

Several major international firms have withdrawn from the market in recent years, citing complex regulatory demands.

In addition, the Crypto-Asset Reporting Framework, coming into effect in 2026, will compel crypto service providers to report client and transaction data to tax authorities.

Together, these developments reflect a strategic shift in how Canada views digital finance. By replacing experimental central bank projects with clear regulation, the government is laying the foundation for a secure and inclusive digital economy.

The post Canada pivots to stablecoins as cornerstone of its digital payments reform appeared first on CoinJournal.

Canada pivots to stablecoins as cornerstone of its digital payments reform

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Europe gets its first stablecoin infrastructure ETP as Virtune lists on Nasdaq and Xetra

cryptonews — Wed, 05 Nov 2025 19:53:59 +0000

The STABLE ETP is physically backed and rebalanced quarterly via Coinbase Custody.
Investors gain exposure to Ethereum, XRP, Solana, Chainlink, Stellar, and Aave.
Launch aligns with Europe’s MiCA regulation and Nasdaq’s digital asset strategy.

A Swedish crypto asset manager has launched Europe’s first exchange-traded product (ETP) dedicated to the infrastructure supporting stablecoins, marking a turning point for regulated digital asset investing in the region.

On November 5, Virtune AB listed its Virtune Stablecoin Index ETP on Nasdaq Stockholm, Nasdaq Helsinki, and Deutsche Börse Xetra.

The launch gives investors an opportunity to access the networks driving stablecoin adoption without directly holding the tokens themselves.

The first stablecoin infrastructure ETP in Europe

Trading under the Bloomberg ticker STABLE, the product is designed to capture value from the blockchains and crypto assets that underpin the growing stablecoin ecosystem.

On Nasdaq Stockholm and Helsinki, it trades as STABLE and STABLEE, respectively, while the Xetra listing uses the symbol VRTN.

The ETP is available to both institutional and retail investors through major brokers and banks, including Avanza, Nordnet, SAVR, Scalable Capital, Smartbroker, and Finanzen Zero.

Virtune describes the product as “the first of its kind” in Europe.

Unlike conventional crypto funds that hold stablecoins such as USDC or Tether, the STABLE ETP provides exposure to the blockchains where stablecoins operate.

It is 100% physically backed by digital assets stored securely with Coinbase Custody and is rebalanced quarterly to reflect market shifts.

The ETP carries a 1.95% annual management fee and supports trading in SEK and EUR.

Capturing the growth of the $314.5 billion stablecoin market

The stablecoin sector has grown rapidly over the past year, with financial institutions adopting tokenised money to facilitate round-the-clock settlements and faster cross-border transfers.

According to CoinMarketCap data, the total stablecoin market value stands at about $314.5 billion.

Euro-backed stablecoins, while still small in comparison, have reached a market capitalisation of $609.37 million, as per CoinGecko, led by Circle’s EURC, Stasis Euro, and Societe Generale’s EUR CoinVertible.

This expansion has encouraged European banks to experiment with their own digital currencies.

In September, nine banks, including UniCredit, Banca Sella, DekaBank, and ING, announced plans to launch a MiCA-compliant euro-backed stablecoin.

Virtune’s STABLE ETP arrives amid this momentum, offering investors a regulated avenue to participate in the wider stablecoin ecosystem.

A bridge between traditional finance and digital assets

By focusing on blockchain infrastructure rather than the stablecoins themselves, Virtune’s ETP aims to diversify risk while capturing growth potential from multiple networks.

The index is weighted using the square root of market capitalisation, a method designed to prevent dominance by larger assets and to maintain balanced exposure across the ecosystem.

For investors, the STABLE ETP represents a gateway into crypto infrastructure via a regulated vehicle.

It eliminates the need to manage private keys or digital wallets while still providing participation in the networks driving stablecoin use in payments, banking, and commerce.

The ETP also aligns with Nasdaq’s broader strategy to expand its range of digital asset products within a transparent regulatory framework.

Helena Wedin, Head of ETF and ETP Services for European Markets at Nasdaq, said the exchange’s goal is to encourage innovation in a secure marketplace.

The listing of Virtune’s product, she noted, highlights the growing maturity of the ETP sector and its importance in linking traditional investors to blockchain-based opportunities.

What Virtune’s launch signals for Europe

The introduction of STABLE marks a significant milestone for European digital asset markets, which are now operating under the new MiCA regulation.

It underscores a shift from speculative crypto products toward infrastructure-focused investments that mirror the real-world utility of blockchain technology.

By packaging stablecoin infrastructure into a regulated exchange-traded product, Virtune has provided a blueprint for how digital assets can coexist with mainstream financial systems.

As more financial institutions explore tokenised money and on-chain settlements, products such as the Virtune Stablecoin Index ETP could serve as benchmarks for future innovation.

In a market driven by efficiency, transparency, and accessibility, Virtune’s launch demonstrates how Europe’s financial ecosystem is evolving to embrace the technology powering the next generation of digital finance.

The post Europe gets its first stablecoin infrastructure ETP as Virtune lists on Nasdaq and Xetra appeared first on CoinJournal.

Europe gets its first stablecoin infrastructure ETP as Virtune lists on Nasdaq and Xetra

Source: https://coinjournal.net/news/europe-gets-its-first-stablecoin-infrastructure-etp-as-virtune-lists-on-nasdaq-and-xetra/