Stable News is Lumx’s weekly curation highlighting the most important updates on stablecoins, tokenization, and digital payments infrastructure in the global economy. In this edition, we analyze the launch of mUSD, MetaMask’s new stablecoin, regulatory clashes between banks and issuers following the approval of the GENIUS Act, Coinbase’s trillion-dollar projection for the stablecoin market by 2028, China’s steps toward a yuan-backed stablecoin, and a new Dune report on crypto adoption in Latin America.
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MetaMask Launches mUSD and Positions Itself as Financial Infrastructure
MetaMask announced the launch of its own stablecoin, mUSD, issued by Bridge (a Stripe subsidiary) and fully backed by dollar-equivalent assets. Initially available on Ethereum and Linea, mUSD will be integrated across the MetaMask ecosystem and, by year’s end, enabled as a payment method on the MetaMask debit card, operated by Mastercard.
This is the first time a self-custodial wallet has launched a native stablecoin, leveraging its base of millions of active users. The stated goal is to make mUSD a central liquidity layer not only within MetaMask but across DeFi. Issuance, however, will remain under Bridge’s control, in compliance with the GENIUS Act.
Why this matters:
✅ Connects stablecoins directly to one of the largest wallet user bases, accelerating adoption.
✅ Future integration with MetaMask’s physical debit card could speed up everyday stablecoin use, especially in Latin America, where card penetration is already high.
✅ Reinforces the trend of software companies stepping into central roles in payment infrastructure.
Banks Push for GENIUS Act Changes, Crypto Sector Pushes Back
US banking associations have lobbied the Senate to weaken key parts of the recently approved GENIUS Act, arguing that trillions in deposits could migrate to the stablecoin sector.
The crypto lobby, represented by the Blockchain Association and the Crypto Council for Innovation, quickly pushed back, claiming banks are protecting their own interests at the expense of competition and innovation. At stake are provisions allowing state-level issuers to operate nationwide and permitting exchanges to offer yield on stablecoin deposits.
Why this matters:
✅ Defines the boundaries between traditional banks and new digital issuers, shaping the US stablecoin market.
✅ The debate over yield on stablecoins is central to their attractiveness for the public.
✅ The outcome may influence regulations in other countries closely watching the US model.
Coinbase Projects a Trillion-Dollar Stablecoin Era by 2028
According to Coinbase, the stablecoin market could reach $1.2 trillion by 2028, driven by the GENIUS Act and rising demand for dollar-backed digital liquidity tied to US Treasuries.
The study estimates that meeting demand would require weekly Treasury issuance of $5.3 billion over the next three years, with minimal impact on short-term yields. Meanwhile, countries like South Korea and China are considering launching national stablecoins to compete with dollar-dominated assets.
Why this matters:
✅ Stablecoins are already significant buyers of US debt, bringing crypto closer to traditional markets.
✅ The projected growth validates stablecoins as critical infrastructure for the global financial system.
✅ The entry of Asian countries signals a clear geopolitical race for the future of digital money.
China Considers Yuan-Backed Stablecoin
After years of cracking down on private crypto, China is now exploring a yuan-backed stablecoin, with pilot programs in Hong Kong and Shanghai. The move aims to expand the international footprint of the Chinese currency in global financial flows.
Experts highlight, however, that the dollar’s credibility and liquidity remain major hurdles. Today, 98% of stablecoin transactions are dollar-based, and the success of a digital yuan would require deep economic and political reforms within China.
Why this matters:
✅ Stablecoins are consolidating as tools of geopolitical competition.
✅ Dollar dominance remains strong, even against Chinese initiatives.
✅ For traction, China would need to shift global perception of the yuan and ease strict controls.
Dune Report Maps Crypto Usage in Latin America
Dune released the LATAM Crypto 2025 Report, one of the most comprehensive analyses of real-world crypto adoption in the region, focusing on payments, stablecoins, on/off-ramps, and consumer applications.
The findings show a region where stablecoins are increasingly becoming a financial foundation, driven by demand for usability and practicality in contexts marked by underbanking and high inflation. The report highlights the central role of exchanges and crypto neobanks, the rise of locally pegged stablecoins, and the evolution of apps that connect stablecoins directly to everyday consumption.
Why this matters:
✅ Latin America stands out as a global testbed for real-world stablecoin use.
✅ Data confirms the shift from speculative crypto to crypto as payment infrastructure.
✅ The diversity of local currencies creates unique opportunities for regional stablecoins.
Lumx to Join the Stablecoin Conference 2025
On August 27–28, Lumx will participate in the inaugural Stablecoin Conference, organized by Bitso in Mexico City. In addition to a product demo booth, Caio Barbosa, Lumx’s CEO, will join the panel “Collaborating for Success: Building a Unified Digital Finance Ecosystem”, alongside other industry leaders.
The event will bring together regulators, companies, and experts to discuss the future of digital payments and Latin America’s strategic role in the global landscape. Lumx will also host a booth to showcase its solutions to attendees.
Stablecoins at a Turning Point
This week’s edition makes it clear: the stablecoin ecosystem is undergoing a profound transformation. From regulatory tensions in the US to giants like MetaMask entering the field, from China’s geopolitical maneuvers to Latin America’s practical adoption data, understanding these shifts is no longer optional. It’s strategic for any company, government, or institution aiming to lead in the digital economy.
See you in the next edition. Have a great week!
What is MetaMask's mUSD stablecoin and why is it significant?
mUSD is MetaMask's native stablecoin, issued by Bridge (a Stripe subsidiary) and fully backed by dollar-equivalent assets. Available on Ethereum and Linea, it will be integrated across MetaMask's ecosystem including a Mastercard debit card. It is the first time a self-custodial wallet has launched its own stablecoin, leveraging millions of active users to create a central liquidity layer across DeFi.
What tensions exist between US banks and stablecoin issuers after the GENIUS Act?
Following the GENIUS Act's approval, US banks are pushing back against stablecoin issuers, arguing that yield-bearing stablecoins create unfair competition for deposits. Banks want stricter requirements for stablecoin issuers to match banking regulations, while issuers contend that stablecoins complement rather than threaten the banking system. This tension is shaping ongoing regulatory refinements.
How large could the stablecoin market become by 2028?
Coinbase has projected that the stablecoin market could reach the trillion-dollar range by 2028, driven by institutional adoption, regulatory clarity from laws like the GENIUS Act, and expanding use cases in cross-border payments, treasury management, and DeFi. This projection reflects the accelerating pace at which traditional finance is integrating stablecoin infrastructure.
Is China developing a yuan-backed stablecoin?
China has taken steps toward developing a yuan-backed stablecoin, adding a new dimension to the global stablecoin competition. While China has historically restricted crypto activities, the strategic importance of digital currencies for international trade and financial influence has pushed authorities to explore state-controlled stablecoin alternatives that could compete with dollar-denominated tokens.
