Stable News: Ripple, Mastercard, and Latin America

Stable News is a weekly editorial curation on the world of stablecoins, their impact on the financial system, and the movements shaping this new digital infrastructure. In this edition, we highlight Ripple’s acquisition of Hidden Road, the rise of gold-backed stablecoins, a new partnership between Mastercard and Kraken in Europe, and the growing role of Latin America in this ecosystem. We also cover a key statement from the SEC and a recent recognition earned by Caio Barbosa, CEO of Lumx, within Brazil’s fintech landscape.

Reading time: 7 min

Ripple Acquires Hidden Road and Sets the Institutional Board

Ripple announced its acquisition of Hidden Road for $1.25 billion, marking one of the most significant moves of the year in the institutional stablecoin space. Hidden Road is a well-respected broker among banks and asset managers, operating with a strong regulatory framework across major markets. With this acquisition, Ripple gains direct access to the missing infrastructure needed to seriously position RLUSD, its corporate stablecoin.

While Circle has already reaped the rewards of being ahead with USDC among enterprises, Ripple is now entering the field with serious firepower. The acquisition allows Ripple to offer not just a stablecoin but an integrated solution for settlement, custody, and distribution backed by institutional-grade infrastructure. At a time when large financial institutions are seeking more controlled alternatives for cross-border flows, the timing couldn’t be better.

What this move signals:

✅ The focus is no longer just on issuing a stablecoin, but on controlling its distribution
✅ RLUSD could be the catalyst for a second wave of corporate stablecoins
✅ Infrastructure is no longer a differentiator—it’s a competitive prerequisite

Gold-Backed Stablecoins Gain Traction Amid Global Uncertainty

In a climate of macroeconomic instability, gold-backed stablecoins like Paxos Gold (PAXG) and Tether Gold (XAUT) are gaining the attention of investors seeking to protect their wealth. These cryptocurrencies are pegged to the price of gold, offering a digital alternative to traditional gold investments.

Recently, both PAXG and XAUT hit new all-time highs, surpassing $3,300, driven by gold’s own record highs. Their values increased by 24.15% and 23.7% respectively, during a period when the broader crypto market was facing significant downturns.

Although their combined market cap is still modest at around $1.4 billion, the growth is notable. In Q1 2025 alone, $42.7 million worth of new tokens were minted, reflecting rising demand for stable and secure digital assets.

Why it matters:

✅ The growth of gold stablecoins reflects demand for digital assets with counter-cyclical behavior
✅ By combining gold’s historical stability with blockchain liquidity and portability, they offer a unique digital reserve proposition
✅ Recent price gains show that in times of uncertainty, investors seek alternatives to the dollar—even within crypto itself

Mastercard e Kraken se unem para impulsionar pagamentos com cripto na Europa

Mastercard and Kraken have announced a strategic partnership to enable crypto payments at millions of retail locations across Europe. The project will begin in the UK and Germany, with planned expansion to other countries in the region. The initiative aims to bring crypto into everyday use, using stablecoins as a bridge between digital assets and traditional commerce.

This comes as MiCA, the EU’s regulatory framework for digital assets, begins actual implementation. A clearer regulatory environment opens space for such initiatives, which still face legal uncertainty in other regions. It's a win for the narrative of normalizing the crypto economy, where stablecoins take on an operational rather than merely financial role.

The choice of Kraken, an exchange with a strong compliance reputation, reinforces a narrative of trust and security for retail adoption.

What this integration demonstrates:

✅ Stablecoins become more powerful when they operate in the background, embedded in daily routines
✅ Europe becomes a showcase for the integration of regulated and digital infrastructure
✅ Crypto adoption doesn’t need to go through “crypto culture”

Latin America as the Silent Epicenter of Stablecoin Adoption

A recent Coinchange report on stablecoin usage in 2024 revealed powerful data about Latin America’s role. The region accounted for about 9% of global stablecoin transaction volume, with countries like Argentina, Venezuela, and Brazil ranking among the top in per capita usage.

In LATAM, stablecoins serve very different functions than in developed markets: they act as inflation hedges, dollar-based stores of value, and gateways to the digital economy for the unbanked. What’s most interesting is how this is happening—through simple, often invisible interfaces where users don’t even realize they’re using blockchain.

Regional infrastructure is also evolving. Local wallet and payment projects are expanding, offering experiences tailored to each country’s reality. It’s the kind of movement that, while quiet, is shaping the future of global adoption.

What this regional snapshot highlights:

✅ LATAM is already doing what other countries are still theorizing
✅ Stablecoins have become local economic survival infrastructure
✅ The “LATAM model” could become a global use-case reference

Stablecoins Are Not Securities, Says SEC

In a recent statement, the SEC reaffirmed that dollar-pegged stablecoins, by themselves, are not considered securities. This clarification helps reduce regulatory uncertainty for most stablecoins in circulation—especially USDC and USDT, which operate under a simple 1:1 reserve model.

The exception lies with so-called yield-bearing tokens. Although not explicitly classified as securities, the SEC suggested that assets offering financial returns—even via protocols—may require a different regulatory approach. The focus is more on structure and messaging than on intent.

What we now have is a clearer line between operational stablecoins and financial products. This is good news for issuers who follow traditional standards and helps the sector move forward with more predictability.

What the SEC’s signal reinforces:

✅ Regulatory clarity could unlock the next wave of integrations
✅ Legal risk shifts to the details: structure, language, expectations
✅ It’s not about avoiding yield—but being transparent about what it represents

Surprise of the Week

Amid the intense pace of recent weeks (MERGE, the launch of Stable Talks, prep for our upcoming webinar, and the Brazil Conference at Harvard—which we’ll dive into in the next edition), a piece of news caught the Lumx team by surprise and filled us with pride. Caio Barbosa, co-founder and CEO of Lumx, was ranked the 16th most influential fintech voice in Brazil on LinkedIn, according to Favikon’s ranking of the top 100 voices in the sector.

Being listed alongside names like Cristina Junqueira, Otavio Costa, Paula Bellizia, Reinaldo Rabelo, and Bianca Lopes is a symbolic milestone that reflects the collective impact of consistently built projects. Seeing a newsletter focused on stablecoins— along with events and educational content—achieve such recognition proves there’s real room to create value, even in niche areas.

Here’s to this achievement, which, while individual in form, is collective in its impact. Onward.