Stablecoins

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Illustration of Ripple executives receiving MiCA approval in Luxembourg for crypto services.
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Ripple gains preliminary MiCA approval in Luxembourg

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Ripple announced on June 23 that it received a preliminary green light from Luxembourg regulators for a crypto-asset service provider license under the EU's MiCA rules. The approval would allow the company to offer stablecoin payment services across the European Economic Area once finalized. The move pairs with a recent investment in African payments firm Flutterwave to expand RLUSD use.

Global banking standards still impose heavy capital charges on crypto assets even as regulators open the door to stablecoins and tokenized deposits. The Basel Committee's framework, effective since January, treats unbacked crypto with a 1,250 percent risk weight. This mismatch could keep much of the activity outside traditional banks.

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The Bank of England has replaced proposed limits on individual and corporate stablecoin holdings with a temporary £40 billion issuance guardrail per coin. The move also allows issuers to hold more reserves in government debt while preparing for a 2027 launch of regulated stablecoins.

Three of Japan's biggest banks announced plans to jointly issue a stablecoin by March 2027. MUFG, SMBC and Mizuho will form a council to develop the necessary frameworks.

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Crypto exchange HTX will remove the USD1 stablecoin from its platform and convert customer balances into USDT. The action follows a freeze of exchange wallets by World Liberty Financial. The move stems from compliance with UK sanctions targeting Russian financial networks.

US Federal Reserve governor Christopher Waller said Sunday that stablecoins could expand the reach of US policy. Bank of England official Megan Greene offered a contrasting view, predicting their popularity would soon fade.

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Mastercard has obtained a BitLicense from New York regulators to expand its digital asset activities. The approval covers stablecoins and tokenized payment infrastructure.

 

 

 

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