Google Enters the Payment Chain, Stablecoins Reach Their BaaS Moment

As stablecoins keep “eating the world,” the value chain is shifting—from issuance to distribution. A clear sign is the rise of white‑label models: front‑end platforms focus on users and flows, while professional issuers handle reserves, audits, and compliance — STaaS (Stablecoin‑as‑a‑Service). With issuance commoditized, differentiation leans on distribution and brand, not just trust in the asset itself. The market could move from a few giants to a more diverse set of mid‑sized ecosystems ($1–25B scale).

The same logic is playing out in card networks and banks. Card issuing is being API‑fied and modularized, letting more firms plug payments directly into workflows. Revenue is shifting from interest and fees toward data and programmability.

Payment blockchains still face the trilemma of privacy, compliance, and performance. Google’s GCUL aligns with institutional needs but at the cost of openness. Combined with Google’s potential conflicts between ads and payments, its ability to serve as neutral public infrastructure for stablecoin settlement remains uncertain.

Market Overview & Growth Highlights

Total stablecoin market cap reached $282.841b, with a week-over-week increase of $6.522b. In terms of market structure, USDT continues to maintain its dominant position at 59.55%; USDC ranks second with a market cap of $70.375b, accounting for 24.88%.

Blockchain Network Distribution

Top 3 Networks by Stablecoin Market Cap:

1. Ethereum: $148.551b

2. Tron: $81.617b

3. Solana: $12.178b

Top 3 Networks by Weekly Growth:

1. M By M^0 (M) : +11.32%

2. Dai (DAI): +9.99%

3. USD Coin (USDC) : +5.57%

Data from DefiLlama

🎯Decoupling Brand and Issuance: The STaaS Future of Stablecoins

Stablecoin issuance is becoming commoditized, shifting the value chain from creation to distribution. The first phase was about reserves and minting, led by institutions. The next phase is about who can push stablecoins into the hands of more users and merchants. With compliance frameworks maturing and infrastructure solidifying, stablecoins are moving beyond exchanges into corporate treasury, capital markets, and consumer networks. Card networks and issuers are pulling them into retail payments. The stablecoin lifecycle is stretching: no longer just an off-ramp, but a persistent medium of exchange binding on-chain and off-chain economies.

In this environment, distribution matters more than the asset itself. White-label models are spreading, letting platforms integrate stablecoins without managing reserves or audits. MetaMask with Bridge and PayPal with Paxos show a new division of labor: platforms own the user relationship, issuers handle reserves and compliance. Even PayPal can distribute an interest-bearing stablecoin without issuing it. This “brand–issuance decoupling” makes stablecoins less a product and more an embedded service in payment and settlement flows.

Traditional finance followed the same path. Banking-as-a-Service abstracted deposits, lending, and card issuance into APIs. In the stablecoin era, this becomes Stablecoin-as-a-Service: reserves, audits, and compliance modularized by professional issuers, while platforms focus on user access and distribution. Stablecoins evolve into invisible infrastructure inside financial and enterprise workflows.

Card issuing is undergoing parallel change. The four-party model built on interest and interchange is eroding under on-chain payments. Issuers now modularize licenses, deposits, and credit lines into APIs, bridging fintech firms and programmable stablecoins. This embeds payments into payroll, freelancer payouts, and B2B flows. The moat no longer lies in credit expansion but in switching costs, data gravity, and programmability. As payments fuse with enterprise operations, stablecoin infrastructure gains durability and growth potential, forming a new layer of advantage.

🎯Google Cloud’s Universal Ledger: A Permissioned Payment Chain for Banks

Google Cloud is building a permissioned blockchain called Universal Ledger (GCUL), aimed at financial institutions. According to Web3 strategy lead Rich Widmann, GCUL will support native on-chain bank money, cross-currency settlement, and programmable payments. The core bet: in the digital currency era, banks must evolve from clearing nodes into issuers and distributors of tokenized assets. GCUL embeds compliance, offers Python-based smart contracts, and exposes APIs to migrate deposits, securities, and clearing flows on-chain. As Google notes, fragmented payment rails and inefficient settlement could cost $2.8 trillion by 2030—stablecoin growth has already validated the demand.

Unlike Stripe’s walled-garden approach, Google positions GCUL as neutral infrastructure. It has already partnered with CME on tokenization pilots, targeting institutions without the resources to build their own chain. As Widmann puts it: “Tether won’t use Circle’s chain, Adyen won’t use Stripe’s chain, but any institution could build on GCUL.” The pitch is a “non-binding” ledger that invites multi-party adoption.

GCUL checks the boxes banks want—privacy, compliance, throughput—but gives up the openness of public chains. With Google’s cloud and ads empire in the mix, its neutrality is questionable, and GCUL’s shot at being a true “public layer” for stablecoin payments is uncertain.

What’s clearer is the shift: the old bet that Ethereum or Solana would capture most stablecoin settlement value may not hold. If the next $2T in flows runs through branded rails like Stripe’s Tempo, Circle’s Arc, or Google’s GCUL, public chains could see their role in payments sharply reduced.

Regulatory Compliance

🏛Tokyo‑listed Monex Group is weighing the launch of a yen‑backed stablecoin, with Chairman Oki Matsumoto warning the firm risks being “left behind” if it doesn’t act. Backed by JGBs for a 1:1 peg, the coin would target remittances and corporate settlements, distributed via Coincheck and Monex Securities. Matsumoto also hinted at a near‑term European crypto acquisition to extend its global footprint. The timing is key: Japan’s FSA is set to approve yen‑pegged stablecoins this fall, after recently greenlighting USDC and lifting its ban on foreign stablecoins. A Monex‑issued yen stablecoin would mark a major step in digitizing the currency for cross‑border payments and sharpen Japan’s competitive edge in the global stablecoin race.

🏛Circle and Paxos are partnering with fintech startup Bluprynt to pilot “provenance upfront” tech—a cryptographic system that lets regulators, auditors, and investors verify in real time that a stablecoin was issued by its claimed creator. The goal: stop counterfeits and impersonations before they circulate. With the GENIUS Act expected to unleash a wave of new issuers, identity‑level verification is becoming critical infrastructure. Chainalysis has flagged fake tokens as a growing risk, and this initiative shifts compliance from paperwork to code, embedding trust directly into the protocol layer. By proving authenticity on‑chain, the industry is moving toward scalable, tamper‑proof stablecoin markets built on verifiable provenance rather than brand reputation alone.

🏛The CFTC has opened a new path for crypto exchanges to re‑enter the U.S. by registering as “foreign boards of trade” (FBOT), allowing them to serve American customers without becoming full U.S. designated contract markets—so long as they’re tightly regulated abroad. Acting Chair Caroline Pham framed the move as part of the agency’s “Crypto Sprint,” aimed at repatriating firms that fled regulatory uncertainty. With rising FBOT applications and a Trump‑era push toward deregulation, the CFTC is signaling a friendlier stance, positioning itself as a bridge for international platforms. As leadership shifts with Commissioner Johnson’s exit and Brian Quintenz’s confirmation looming, the agency could become a key gateway for global exchanges seeking a compliant U.S. comeback.

Market Adoption

🌱Vercel, the cloud platform behind Next.js, now accepts USDC for credits on its AI frontend tool v0. It’s a small but telling shift: stablecoins are moving from crypto‑native apps into SaaS and developer tooling. For Vercel’s global user base, USDC payments mean bypassing card hurdles, cutting fees, and enabling smoother cross‑border access to services. It also hints at a broader trend where stablecoins evolve into default internet money rails—not just for DeFi, but for everyday developer and SaaS subscriptions.

🌱Mastercard is teaming up with Circle to bring USDC and EURC settlements to payment processors in Eastern Europe, the Middle East, and Africa—starting with Arab Financial Services and Eazy Financial Services. The feature promises faster, lower‑friction, high‑volume settlements, positioning stablecoins as core infrastructure for digital commerce in emerging markets. Circle’s USDC supply has surged 90% YoY to $61.3B, reaching $65.2B by August and now owning 28% of the fiat‑backed stablecoin market. For regions hungry for dollar and euro rails, the partnership offers a compliant, scalable alternative to legacy cross‑border systems. It also cements Mastercard’s strategy of embedding stablecoins directly into its network, turning crypto into invisible settlement plumbing for global payments.

🌱Finastra, whose Global PAYplus system processes $5T in cross‑border payments daily, is integrating Circle’s USDC to enable near‑instant, 24/7 settlement for banks. The setup lets transfers remain fiat‑denominated while using USDC under the hood, cutting reliance on slow, expensive correspondent banking rails. For banks, it’s a plug‑and‑play way to modernize without building new infrastructure. With Stripe and PayPal already building stablecoin rails, Finastra’s move marks stablecoins’ transition from crypto niche to mainstream finance backbone. Coinbase forecasts stablecoins could hit $1.2T by 2028 (up from $270B today), and integrations like this are what make that leap plausible—turning stablecoins into invisible plumbing for the global payments system.

🌱Venezuela’s hyperinflation is fueling one of the fastest crypto adoption waves in the world: shops, chains, and even universities are embracing stablecoins and digital assets, with some employers paying salaries in crypto. The bolivar has lost 70% of its value since October and May inflation hit 229%, pushing the country to #13 on Chainalysis’ 2024 adoption index with 110% year‑over‑year growth. Crypto remittances now make up 9% of the nation’s $5.4B inflows, displacing costly services like Western Union. Venezuela shows crypto’s real‑world utility as savings protection, remittance rail, and payment system under currency collapse—offering a potential blueprint for other economies under inflation stress and spotlighting stablecoins as a lifeline in unstable markets.

🌱Gemini and Ripple have teamed up on an XRP rewards credit card, issued by WebBank and running on Mastercard. The card pays 4% back in XRP on gas, EV charging, and rideshares; 3% on dining; 2% on groceries; and 1% everywhere else—plus up to 10% at select merchants. It also supports Ripple’s RLUSD stablecoin. The launch pushed Gemini’s app to #16 in U.S. finance downloads, above Coinbase, even as its trading volume lags. With Gemini eyeing an IPO after a $282.5M H1 loss, the card signals a pivot toward utility and mainstream payments. More than speculation, it’s a bid to make crypto rewards as familiar as airline miles while expanding Gemini’s business lines.

🌱TD Securities has become the first third‑party custodian on JPMorgan’s Digital Debt Service (DDS) blockchain, marking a turning point for on‑chain bond custody. The move lets TD provide custody for debt instruments issued, settled, and managed entirely on JPMorgan’s blockchain—bringing same‑day settlement, automated lifecycle management, and smart contract‑driven corporate actions. In a pilot, its asset management arm executed a $100M commercial paper trade seamlessly on‑chain. With TD overseeing $4.7T AUM and $46.6T in custody, its entry validates blockchain’s leap from pilots to institutional‑scale deployment. The precedent signals custodians’ evolving role in digital assets and accelerates the shift of capital markets infrastructure onto programmable, blockchain‑based rails.

🌱Logistics startup Arrive AI is rolling out Bitcoin payroll, letting employees, suppliers, and even customers opt to be paid in BTC—CEO Dan O’Toole is first in line. The company also plans to launch its own token for staff pay, supplier contracts, and network transactions, aiming to boost speed and transparency across deliveries. Arrive AI is in hyper‑growth mode, tripling headcount with an AI‑heavy hiring spree to fuel its “AI‑first” operations. While big payments players like Mastercard chase stablecoins, Arrive is betting on native Bitcoin as a practical business currency. The move signals growing corporate confidence that crypto isn’t just speculative—it can function as everyday payroll and settlement infrastructure.

🌱Square’s new roadmap pushes it deeper into both finance and crypto. Merchants will soon get a native Bitcoin wallet, automatic conversion of card sales into BTC, and the ability to accept Bitcoin payments directly. Onboarding perks now include loans available in week one and instant access to a Square credit card—sidestepping traditional approval bottlenecks. For restaurants, Square is rolling out bundles with self‑service kiosks, centralized menus, automated surcharges, and upgraded kitchen tools. The strategy shifts Square from payment processor to full‑stack business platform, while tying its future tightly to Bitcoin’s mainstream adoption. If successful, it could normalize BTC as part of everyday commerce while disrupting banks’ grip on small business credit.

New Launches

👀Aave Labs has launched Horizon, a new Ethereum market built to connect tokenized TradFi assets with DeFi. Partners include VanEck, Circle, Ripple, WisdomTree, Superstate, and Centrifuge, with early collateral options like Superstate’s USCC/USTB and Centrifuge’s JRTSY/JAAA, plus Circle’s USYC coming soon. Stablecoin supply spans USDC, RLUSD, and Aave’s GHO. Using Chainlink’s NAVLink for real‑time asset valuations, Horizon enables compliant, over‑collateralized stablecoin loans backed by institutional‑grade assets. The platform blends permissionless stablecoin liquidity with regulatory alignment, unlocking the potential for multi‑trillion‑dollar real‑world asset flows into DeFi and marking a major step in bridging traditional finance with decentralized markets.

👀Anchorage Digital has launched Anchorage Digital Ventures to back early‑stage protocols in Bitcoin DeFi, real‑world assets, and decentralized identity—just as its bank became the first federally chartered issuer of stablecoins. The platform now lets institutions spin up branded, GENIUS Act‑compliant stablecoins with turnkey tech, regulatory cover, and instant network access. By pairing VC capital with compliant issuance rails, Anchorage is positioning itself as both incubator and infrastructure provider for the next wave of institutional blockchain adoption. This play extends crypto custody into the full financial stack, giving startups not only funding but also a built‑in path to scale under U.S. regulation.

👀 Ant International and Standard Chartered are piloting a bank‑to‑wallet payment solution over SWIFT, using ISO 20022 messaging and connecting Ant’s Alipay+ wallet gateway to 11,500 financial institutions and 1.7B user accounts. With 42% of global consumers—and 44% in the U.S.—now preferring wallets for remittances, this shift is overtaking traditional transfers. The pilot shows how banks can plug into wallet ecosystems to stay competitive with fintechs, rather than be displaced. With 62% of banks in the U.S. and U.K. planning fintech partnerships for cross‑border innovation, this collaboration signals a broader restructuring of global payments where digital wallets, not legacy rails, become the default channel for moving money internationally.

👀 Tether is bringing USDT natively to Bitcoin via the RGB protocol, which anchors assets to Bitcoin and works with the Lightning Network. RGB enables off-chain ownership verification, cutting data load while keeping Bitcoin’s security, and allows near‑instant, private settlement. With $167B USDT mostly on Tron and Ethereum, this marks a major pivot as Tether phases out Omni, EOS, and Algorand. The move aligns with Tether’s push into Bitcoin infrastructure—it already holds 100k+ BTC and aims to be the world’s largest miner by 2025. By launching a Bitcoin‑native stablecoin, Tether is betting on faster, cheaper, and more private rails for payments and remittances, while reinforcing Bitcoin as the backbone of its long-term strategy.

Big Picture

🔮 The U.S. GENIUS Act has jolted Europe’s digital euro strategy, pushing the ECB to consider issuing its CBDC on public blockchains like Ethereum or Solana. This is a sharp turn for a region that once favored private, tightly controlled systems. European officials warn that stablecoins could erode bank deposits, weaken monetary policy, and create geopolitical dependence, yet they also fear giving a CBDC too much power. The dilemma is clear: design a euro strong enough to compete with dollar stablecoins without destabilizing Europe’s banking sector. The reaction highlights how U.S. blockchain policy is shaping global currency choices and forcing Europe into a high‑stakes rethink.

🔮Stablecoins are no longer a sideshow—they’re pushing central banks to move faster on CBDCs. A new BIS survey shows that one-third of central banks are accelerating digital currency research, with the ECB citing U.S. stablecoin momentum as a trigger. While 91% of banks are still exploring CBDCs, nearly two-thirds of economies are already building dedicated stablecoin rules, most through new legislation. This marks a shift from passive observation to active competition between public and private digital money. The race is on, and stablecoins have set the pace.

Capital Deployment

💰Rain has raised $58M in Series B funding led by Sapphire Ventures, with backing from Samsung Next, Dragonfly, and Galaxy Ventures, pushing total funding to $88.5M. The startup offers enterprise-grade stablecoin payment rails, letting banks and fintechs issue Visa cards, wallets, and programs powered by stablecoins—usable anywhere Visa runs. Transaction volume has surged 10x since January, as demand accelerates under new U.S. (GENIUS Act) and EU (MiCA) rules. With MetaMask prepping its own Mastercard product and big banks like BofA eyeing stablecoin issuance, Rain’s role as a bridge between stablecoins and Visa’s global network positions it squarely in the middle of a trillion-dollar opportunity.

💰Swiss stablecoin platform M0 has raised $40M in Series B funding led by Polychain, Ribbit, and Endeavor, bringing total backing to $100M. M0’s model splits reserve management from programmability: regulated entities hold assets like cash and Treasuries, while developers build how those reserves are created and moved. This structure powers MetaMask’s upcoming mUSD on Ethereum and Linea, and has already driven M0’s supply past $300M. With the U.S. GENIUS Act spurring a new wave of issuers, M0 looks like a bridge for traditional firms to launch compliant stablecoins. Stripe’s Bridge is the first regulated issuer on M0, signaling a future where stablecoin infrastructure could support thousands of competitors beyond Tether and USDC.

💰Singapore’s Tazapay has closed its Series B with co-investment from Ripple and Circle, aiming to expand licenses in the U.S., Australia, Hong Kong, and the UAE. The platform builds global collection and settlement rails with one of the largest fiat networks in emerging markets, and now positions itself as a key fiat on/off-ramp for stablecoins. By tackling cross-border pain points—slow settlement, high fees, and too many intermediaries—Tazapay is becoming critical “last‑mile” infrastructure for stablecoin payments. Backing from both Ripple and Circle underscores a bigger shift: stablecoin adoption is moving beyond theory into real-world payment networks, with emerging markets at the center of the next growth wave.