stablecoin

The debates surrounding interest accrual on stablecoins may alter the very understanding of consumer 'money' accounts amid tensions in the banking sector.
The confrontation over stablecoin regulation in Washington increasingly resembles a dispute over bank deposits. Banks immediately see this as a familiar problem. It is about who actually controls customer money.

In the midst of the rapid transformations within the world of decentralized finance, the World Liberty Financial (WLFI) project stands out as one of the initiatives striving to build a practical bridge between the traditional financial system and blockchain technologies. The project presents a comprehensive vision based on decentralized governance, stablecoins, and cross-border payment solutions, with a clear focus on transparency, accessibility, and low cost. The core of this system is the stablecoin USD1 and its associated expansionary structure known as USD1+.

The U.S. National Credit Union Administration (NCUA) has issued its first proposed rules under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, outlining a federal licensing pathway for payment stablecoin issuers affiliated with federally insured credit unions.

Key Takeaways
NCUA proposes a new Permitted Payment Stablecoin Issuer (PPSI) license for subsidiaries of federally insured credit unions.Credit unions would be prohibited from issuing stablecoins directly or engaging with unlicensed issuers.The framework introduces a federal supervisory pathway aligned with the GENIUS Act’s implementation timeline.
The move marks a structural step in the post-GENIUS Act regulatory rollout, signaling how U.S. authorities intend to integrate stablecoin issuance into the federally supervised financial system without allowing direct balance-sheet exposure for insured credit unions.
Licensing Structure for Credit Union-Affiliated Stablecoin Activity
Under the proposal, subsidiaries of federally insured credit unions (FICUs) would be required to obtain designation as an NCUA Permitted Payment Stablecoin Issuer (PPSI) before issuing payment stablecoins. Direct issuance by the credit unions themselves would not be permitted. Instead, issuance activity would need to occur through separately supervised entities, such as credit union service organizations or comparable subsidiaries.
The proposal also restricts capital relationships: federally insured credit unions would be barred from investing in or extending credit to any payment stablecoin issuer that does not hold the required PPSI license. This effectively creates a closed supervisory perimeter in which only NCUA-approved entities can interact with insured institutions in stablecoin-related activities.
Application Standards and Supervisory Timelines
Subsidiaries seeking PPSI status would need to demonstrate financial soundness, appropriate governance structures, and viable business models. The agency indicates that applications must receive action within 120 days, with automatic approval triggered if no decision is issued within that window.
The draft framework emphasizes technological neutrality. Applications cannot be denied solely because a stablecoin is deployed on an open, public, or decentralized blockchain network, reflecting an effort to separate network architecture from supervisory eligibility.
A 60-day public comment period will begin following publication in the Federal Register, with comments expected to close around mid-April 2026. The GENIUS Act mandates full regulatory implementation by July 18, 2026, placing this proposal within a defined legislative timeline.
Balance-Sheet Separation and Risk Containment
The structure reinforces a policy objective of isolating stablecoin issuance risk from the insured balance sheets of credit unions. By requiring activity to occur through licensed subsidiaries, the NCUA preserves a firewall between federally backed deposits and digital asset issuance operations.
Federally insured credit unions collectively serve approximately 144 million members and manage about $2.38 trillion in assets, according to mid-2025 figures. More than 4,000 institutions fall under NCUA supervision. Bringing stablecoin-linked subsidiaries into a licensing regime therefore represents a measurable expansion of federal oversight into a segment that intersects with both retail financial services and digital asset infrastructure.
Next Phase of GENIUS Act Implementation
The NCUA indicated that this proposal represents the first stage of rulemaking. A forthcoming regulatory package is expected to address additional GENIUS Act standards, including 1:1 reserve backing requirements with U.S. currency or highly liquid assets, capital and liquidity thresholds, anti–illicit finance controls, information technology risk management, redemption procedures, and monthly reserve disclosure obligations.
While Bitcoin and other digital assets remain reference points for broader market risk appetite, stablecoins increasingly function as settlement infrastructure within the crypto ecosystem. The proposed framework suggests that U.S. policymakers are moving toward formalizing issuance standards for institutions connected to the traditional financial system rather than leaving participation to loosely defined structures.
The rulemaking signals a shift toward federally supervised participation in stablecoin markets by credit union-affiliated entities, while maintaining structural safeguards around insured institutions. As implementation progresses toward the GENIUS Act’s statutory deadline, licensing standards and supervisory mechanics are likely to shape how traditional financial cooperatives interface with digital payment tokens.
#stablecoin

On 10/2/2026, Tether Treasury burned (permanently destroyed) 3.5 billion USDT on the Ethereum network – one of the largest burns in stablecoin history!
According to Whale Alert and confirmation from CEO Paolo Ardoino:
🔸 The burn transaction was carried out directly from the official treasury address.
🔸 No signs of chainswap or chain transfers related (like previous times with HTX recovery on Tron/Eth).
🔸 No new minting compensating on other chains (in contrast to some recent burns with minting on Tron).

As we move through 2026, the conversation around blockchain utility has shifted from "what can it do?" to "how can it scale for the masses?" One project standing at the forefront of this shift is @plasma, a Layer 1 blockchain specifically engineered to be the foundational infrastructure for stablecoins and global digital payments.
Why Plasma Matters
Traditional blockchains often struggle with the friction of high gas fees and slow finality—barriers that prevent stablecoins from becoming a true "digital dollar" for everyday use. Plasma solves this with its PlasmaBFT consensus, achieving sub-second finality and the high throughput necessary for retail-scale transactions.
One of the project's most disruptive features is the gasless USDT transfer system. By allowing the protocol to sponsor gas costs for standard transfers, @undefined removes the biggest hurdle for new users: the need to hold a native token just to send a payment.
The Role of $XPL
While stablecoin transfers can be gasless, the $XPL token remains the heartbeat of the ecosystem. Its utility is multifaceted:
Security & Staking: Validators secure the network by staking $XPL, and in 2026, the rollout of validator delegation has allowed the broader community to participate in network security while earning rewards.Economic Backbone: $XPL powers complex smart contracts, DeFi interactions, and non-sponsored transactions.Deflationary Mechanics: Following an EIP-1559-style model, a portion of fees is burned, creating a balance against the network's inflation and rewarding long-term holders.
Looking Ahead
With the recent launch of the pBTC Bitcoin Bridge, Plasma is now successfully bridging the liquidity of Bitcoin with the speed of its EVM-compatible layer. This allows users to use BTC as collateral or for payments within the same ecosystem where they spend their stablecoins.
As @Plasma plasma continues to expand its "Plasma One" neobank services into Southeast Asia and the Middle East, the synergy between a stablecoin-first architecture and a robust utility token like $XPL is setting a new standard for Web3 finance.
#Plasma a #XPL #stablecoin s #Web3Payments #CryptoEvolution

On the afternoon of February 10, 2026, at the White House, an important meeting took place between major banks and crypto companies to discuss the new bill.
The center of the debate is whether stablecoins (stable-value currencies, like USDT or USDC) are allowed to pay interest or rewards to users.

What is happening?
🔹On the bank's side (like JPMorgan, Goldman Sachs…): They worry that if stablecoins offer interest or rewards, people will withdraw money from bank accounts to move to crypto – leading to an imbalance in the traditional financial system.

Government stablecoins: A new era of financial stability with $KGST

The modern cryptocurrency market is often associated with high volatility, but it is stablecoins that become the bridge connecting digital assets with the real economy. Government and regional projects, such as $KGST , hold a special place in this hierarchy.

Plasma: Is the momentum that can change adoption?

One of the most striking proposals of Plasma is to allow basic transfers of USDT without the user paying gas directly. This is made possible by a paymaster system that assumes the transaction cost, eliminating one of the main entry barriers in many blockchains: the need to hold the native token just to cover fees.
In practice, this decision significantly improves the user experience. For everyday payments, remittances, or transfers between people, not having to worry about gas simplifies the process and can facilitate the mass adoption of stablecoins within the Plasma ecosystem.

The White House sets the end of February as a deadline to reach a compromise on stablecoin revenues.
Banks propose "prohibition principles" to ban all rewards for shareholders.
Cryptocurrency companies claim that the restrictions on revenues stifle innovation and competition.
Stalemate on rewards delays a law for clarity in the digital asset market.