Stable News is Lumx’s weekly curation dedicated to tracking the key movements in stablecoins, digital infrastructure, and the future of global payments.
This week brought updates across multiple fronts: the yield debate in the U.S. gained new chapters with opposing positions from the White House and the banking sector; Europe entered a phase of practical execution; stablecoin supply on Ethereum reached a historic record; and Hong Kong and Switzerland marked significant regulatory milestones.
What emerges is a geographic decentralization of progress, while Washington debates, other jurisdictions build.
Reading time: 5 minutes
White House publishes study weakening the banking argument against yield — banks respond the next day
In brief:
Council of Economic Advisers report finds banning yield would bring only a 0.02% increase in bank credit
ABA criticizes methodology and warns of deposit outflows from smaller banks
Yield debate remains the main bottleneck of the CLARITY Act, while the GENIUS Act moves forward
The debate over stablecoin yield, which has been tracked since edition #119, saw two major developments in the same week. The White House released a study from the Council of Economic Advisers showing that banning yield on stablecoins would increase bank credit by only $2.1 billion, about 0.02% of total lending, while imposing a net $800 million loss in consumer welfare. The study directly challenges the core banking argument that yield-bearing stablecoins would drain deposits and weaken credit capacity.
The response came quickly. The American Bankers Association publicly pushed back, arguing that the White House addressed the wrong question. According to ABA economists Sayee Srinivasan and Yikai Wang, the real risk lies not in aggregate credit impact, but in deposit migration from community banks to larger institutions, increasing local funding costs. The ABA also cited Treasury estimates of up to $6.6 trillion in potential deposit outflows if yield-bearing stablecoins are allowed.
For context, two legislative tracks are moving in parallel in the U.S. The GENIUS Act, enacted in July 2025, already establishes prudential requirements for stablecoin issuers, including reserves, capital, and redemption — and this week the FDIC approved its operational regulatory proposal. The CLARITY Act, on the other hand, addresses broader digital asset classification and is where the yield debate is taking place. While the GENIUS Act advances into implementation, the CLARITY Act remains stalled over whether issuers can remunerate stablecoin holders. The two are complementary, but at very different stages of maturity.
The fact that the White House published a study aligned with the crypto industry’s position signals the current political direction, but consensus remains distant.
European banks and corporates move from theory to partner selection for stablecoins
In brief:
Companies with board approval begin practical implementation
USDC volume in Europe grew 109%, market share rose from 13% to 32%
Consortia and euro/franc stablecoin initiatives advance
Eighteen months ago, conversations between European banks and stablecoin infrastructure providers were largely educational. Now, according to Taurus co-founder Lamine Brahimi, discussions have become “much more immediate and practical,” with companies already selecting partners for live implementations.
Data supports the shift. On Paybis, USDC volume in the European Union grew about 109% between October 2025 and March 2026, with market share rising from 13% to 32%. Buyer volume exceeded seller volume by 5 to 6 times, with transactions 15–35% larger than those involving Bitcoin or Ethereum.
The regulatory driver is clear: MiCA replaced fragmented national rules with a unified framework, reducing uncertainty that had previously delayed decisions. In practice, this has unlocked multiple initiatives — ClearBank Europe became the first Dutch credit institution approved under MiCA; the Qivalis consortium (ING, UniCredit, CaixaBank, BBVA) is advancing a euro stablecoin; Société Générale is already operating a euro stablecoin on Stellar; and a Swiss franc–backed stablecoin involving ING, UniCredit, and BNP Paribas is expected in the second half of 2026.
When Rhino.fi CEO Will Harborne says
“every company will eventually accept and use stablecoins in some way,”
it is not a long-term projection — it reflects what is already happening on the ground in Europe.
Stablecoin supply on Ethereum reaches $180 billion — up 150% in three years
In brief:
Ethereum holds 60% of global stablecoin supply
Projection points to $850 billion in new flows by 2030
BlackRock, JPMorgan, and Amundi launch tokenized products on the network
The total value of stablecoins on Ethereum reached $180 billion, a historic record representing 150% growth over the past three years. The network accounts for about 60% of global stablecoin supply, rising to over 65% when including Layer 2 solutions such as Arbitrum, ZKsync Era, and Base.
This goes beyond raw volume. Token Terminal projects that if current growth continues, networks could receive approximately $850 billion in new inflows by 2030, with $1.7 trillion in transactions over the next four years. Standard Chartered, as discussed in edition #119, had already projected that over $1 trillion could move from banks into stablecoins by 2028.
Institutional adoption is driving this concentration. BlackRock, JPMorgan (which launched the tokenized MONY fund in December), and Amundi are already operating tokenized products directly on Ethereum. As noted by Nick Ruck, director at LVRG Research, the current moment “strongly supports a sustained long-term bull cycle driven by tokenized assets,” although regulatory challenges and competition from other networks remain key variables.
Hong Kong grants first stablecoin licenses to HSBC and a Standard Chartered-led consortium
In brief:
HKMA issues first licenses under the Stablecoins Ordinance
HSBC integrates HKD stablecoin into PayMe and its banking app
Anchorpoint adopts a B2B2C distribution model
Hong Kong granted its first stablecoin issuance licenses on April 10 to HSBC and Anchorpoint Financial (a consortium led by Standard Chartered with Animoca Brands). The approvals were issued by the HKMA under the Stablecoins Ordinance, in effect since August 2025, from a pool of 36 applicants.
The key detail: HSBC announced its HKD stablecoin will be directly integrated into PayMe and the HSBC HK app, focusing on everyday use cases such as P2P, P2M, and tokenized investments. Anchorpoint, meanwhile, will follow a B2B2C model, distributing through authorized partners.
Notably, both licensed banks are among the three institutions authorized to issue Hong Kong dollar banknotes — a system dating back to 1846. When the same banks that print a territory’s physical currency begin issuing its regulated digital version, the institutional signal is unmistakable.
Six Swiss banks launch sandbox for a Swiss franc stablecoin
In brief:
UBS, PostFinance, Raiffeisen, ZKB, Sygnum, and BCV begin joint pilot
Sandbox runs on Ethereum (ERC-20), testing atomic settlement and smart contracts
Results will inform updates to Swiss financial legislation
In the same week, six of Switzerland’s largest banks, UBS, PostFinance, Zürcher Kantonalbank, Raiffeisen, Sygnum, and Banque Cantonale Vaudoise, launched a sandbox to test a Swiss franc–backed stablecoin. The pilot, operated by Swiss Stablecoin AG, runs on Ethereum and will continue through the end of 2026.
The collaborative model stands out. Instead of competing individually, banks opted to build shared infrastructure, testing atomic settlement, blockchain-banking integration, and smart contracts within a framework open to additional institutions.
The pilot’s results are expected to directly inform proposed amendments to the Financial Institutions Act (FinIA), creating a legal foundation for regulated bank-issued stablecoins in Switzerland. It is a notable case of a jurisdiction using controlled experimentation to shape regulation, rather than the other way around.
This week’s developments reinforce an increasingly clear pattern: the advancement of stablecoins no longer depends on a single jurisdiction or actor. Regulation, infrastructure, and adoption are progressing in parallel across different regions, creating a more distributed and functional system.
See you in the next edition.
