Bitcoin has fallen nearly 30% since a major market crash in October, while gold and silver have soared to new highs. A $2.24 billion drop in total stablecoin market capitalization over the last 10 days could signal capital is leaving the crypto ecosystem and may delay market recovery, according to a crypto analytics platform. In a post to X on Monday, Santiment said that much of that capital has rotated into traditional safe havens like gold and silver, pushing them to new highs, while Bitcoin (BTC), the broader crypto market and stablecoins have retraced. “A falling stablecoin market cap shows that many investors are cashing out to fiat instead of preparing to buy dips,” Santiment said, adding that rising demand for gold and silver suggests that “investors are choosing safety over risk.” Read more
Proposed restrictions under the US CLARITY Act could drive demand for offshore and synthetic dollar products as investors seek yield outside regulated markets, experts warn. The proposed restrictions on stablecoin yields under the US CLARITY Act risk driving capital out of regulated markets and into offshore, opaque financial structures. Colin Butler, head of markets at Mega Matrix, said banning compliant stablecoins from offering yield would not protect the US financial system, but instead sideline regulated institutions while accelerating capital migration beyond US oversight. “There’s always going to be demand for yield,” Butler told Cointelegraph, adding that if compliant stablecoins can’t offer it, capital will simply move “offshore or into synthetic structures that sit outside the regulatory perimeter.” Read more
Institutional compliance costs and higher Treasury yields are reshaping stablecoin issuance as growth shifts from rapid expansion to balance-sheet discipline. After a period of rapid expansion, the global stablecoin market has largely stalled, signaling a consolidation phase as new regulation, liquidity constraints and higher real-world yields weigh on new issuance, according to Jimmy Xue, co-founder of quantitative yield protocol Axis. In a note shared with Cointelegraph, Xue said that while stablecoin regulation has advanced, tighter frameworks in the United States and Europe have forced institutional issuers to hold higher-quality reserves and absorb rising compliance costs, slowing the pace of net issuance. At the same time, elevated real yields on US Treasurys have increased the opportunity cost of holding stablecoins that offer no direct yield. That dynamic has dampened speculative minting and reinforced stablecoins’ role as infrastructure for payments, settlement and short-duration liquidity, rather th...
With the CLARITY Act scheduled for a markup on Thursday, some lawmakers could still be at odds over decentralized finance, stablecoins and ethical concerns. As US senators prepare to mark up a major crypto market structure bill this week, industry leaders are weighing in on proposed changes that could shape whether stablecoin holders can earn interest and rewards. According to an amended draft of the Digital Asset Market Clarity Act released on Monday, the bill states that “a digital asset service provider may not pay any form of interest or yield [...] solely in connection with the holding of a payment stablecoin,” effectively barring passive, deposit-like returns on stablecoin balances. The draft leaves room for structured reward mechanisms, as stablecoin rewards would not be prohibited under certain circumstances, including “providing liquidity or collateral” or “governance, validation, staking, or other ecosystem participation.” Read more
Crypto venture capitalists have tipped stablecoin card adoption to take off in 2026 after fintech startup Rain secured $250 million in funding to push stablecoin payments. An industry leader said stablecoin-powered cards are shaping up to be one of the biggest crypto themes of 2026, which seek to provide the benefits of blockchain while keeping the payment experience familiar for consumers. “This is one of the big themes of 2026: crypto becomes enmeshed more deeply into how payments flow through the global economy,“ Haseeb Qureshi, a managing partner at crypto-focused venture capital firm Dragonfly, posted to X Friday. “Stablecoin cards are growing like crazy, everywhere in the world,” the VC added after stablecoin startup Rain raised $250 million in a funding round that pushed its valuation to nearly $2 billion. Read more
The investment from the stablecoin giant coincides with accelerating institutional interest and Wall Street participation in the crypto-backed loans sector. Stablecoin issuer Tether has invested in Ledn, a platform providing consumer loans collateralized by Bitcoin, the company said Tuesday. The funding is targeted toward developing financial infrastructure that allows businesses and individuals to access liquidity and credit against their Bitcoin (BTC) without needing to sell their holdings. Ledn, founded in 2018, provides users in over 100 countries with custody, risk management and liquidation services. In October, the company reported it had originated $392 million in Bitcoin-backed loans for the third quarter of 2025. Read more
Stablecoin laws are popping up all over the globe, but their differences could spell trouble for cross-border crypto projects. Stablecoins have been regulated in different ways across the globe, raising concerns about their viability and possibly putting up barriers for newcomers. Europe’s framework, Markets in Crypto-Assets (MiCA), varies significantly from the US’s GENIUS Act. Both are distinct from Hong Kong’s own stablecoin rules, which were finalized just two weeks ago. These three regulatory frameworks have provided clear standards for stablecoins. Reserve requirements, issuer licensing and permit schemes now have cut-and-dry conditions, which have undoubtedly made it easier for stablecoins to flourish. Read more
Agora, founded by Nick van Eck, aims to boost adoption of its white-label stablecoin platform with $50 million from Paradigm and Dragonfly. Stablecoin issuer Agora raised $50 million in a Series A funding round led by crypto venture firm Paradigm. The investment sets the stage for Agora to expand its white-label stablecoin offering, AUSD, amid growing interest in dollar-backed digital assets. Agora enables companies to launch their own branded stablecoins using AUSD’s underlying infrastructure, benefiting from shared liquidity and interoperability. The project is founded by Nick van Eck, son of VanEck CEO Jan van Eck, alongside crypto veterans Drake Evans and Joe McGrady. “What we wanted to do is really something novel, which is start by building the network,” van Eck told Fortune. “We always had the view that we were going to do white-labeled issuance in a different way to how existing peers had done it.” Read more