Stable News is Lumx’s weekly curation dedicated to highlighting the key developments in stablecoins, tokenization, and digital payments in the global economy.
This edition highlights the development of proprietary blockchains by major payment companies, the launch of the first U.S. state-backed stablecoin with Visa integration, Asian regulatory frameworks for sovereign stablecoins, and Circle’s record results in its first quarter post-IPO.
Reading time: 8 minutes
Stripe, Circle, and Robinhood Lead the Race for Proprietary Payment Blockchains
The digital payments sector is witnessing an unprecedented strategic trend: major financial companies are developing proprietary blockchains specialized in stablecoins and transactions. Stripe, in partnership with Paradigm, is secretly building Tempo, a high-performance Ethereum-compatible layer-1 optimized for financial transactions. At the same time, Circle announced Arc, a purpose-built blockchain for “stablecoin finance,” with USDC as its native gas token, an integrated FX engine, and sub-second settlement.
The movement is expanding: Robinhood launched its tokenization-focused layer-2, Tether is developing Plasma, and startups such as Stable have raised significant funds to create specialized rails. The business logic is clear, controlling infrastructure means owning the user experience, reducing operational costs, differentiating through software, and capturing value from every processed transaction.
However, experts warn of the risks of fragmentation. The race for private blockchains could create new silos, reduce interoperability, and concentrate power among a handful of major players, a phenomenon reminiscent of how the open internet gradually gave way to centralizing tech giants. The challenge will be to balance scale and user experience with the principles of interoperability and decentralization that made stablecoins innovative in the first place.
Why it matters:
✅ Fragmented rails can make the ecosystem more efficient, but also carry risks of silos and lost crypto interoperability.
✅ Companies that control distribution gain decisive competitive advantage in the “last mile” between blockchain and the real world.
✅ The paradox: stablecoins promise decentralization, but the race for scale may concentrate power in a few dominant players.
Circle Reports 90% Growth in USDC and Accelerates Full-Stack Strategy
Circle posted record results in its first quarter as a public company, with USDC circulation up 90% year-over-year, reaching $61.3 billion at the end of the quarter and already hitting $65.2 billion in August. Total revenue grew 53% to $658 million, while adjusted EBITDA rose 52% to $126 million, proving the scalability of its stablecoin-based business model.
Despite a net loss of $482 million, driven by non-cash IPO-related charges, the company reinforced its dominant position. The launch of the Circle Payments Network and the Arc blockchain, combined with partnerships with Binance, Corpay, FIS, Fiserv, and OKX, positions Circle as a full-stack player in the stablecoin ecosystem.
Why it matters:
✅ These results validate stablecoins as sustainable and scalable businesses, especially with growing regulatory clarity.
✅ The full-stack strategy (issuance + infrastructure + distribution) could create durable competitive advantages.
✅ Strong post-IPO performance signals institutional appetite for exposure to regulated stablecoin growth.
Wyoming Launches First U.S. State-Backed Stablecoin with Visa Integration
Wyoming has officially launched the Frontier Stable Token (FRNT), becoming the first U.S. state to issue an official stablecoin. Fully collateralized with short-term Treasuries and dollars, with a mandatory 102% reserve ratio, FRNT is available across seven major blockchains and can be used anywhere Visa is accepted, including Apple Pay and Google Pay.
Developed by the Wyoming Stable Token Commission, the project marks a milestone in modernizing government processes. Pilot programs demonstrated supplier payment timelines shrinking from 45 days to just seconds. Wyoming consolidates decades of crypto-friendly legislation (over 45 laws since 2016) with a practical application that could inspire other states and governments.
Why it matters:
✅ Local governments are taking the lead in adopting stablecoins, creating concrete use cases and added legitimacy.
✅ The GENIUS Act strengthens the project’s foundation: FRNT complies with federal requirements, facilitating interstate integration.
✅ Visa integration removes usability barriers, bringing stablecoins closer to mainstream payments.
South Korea Advances National Framework for Won Stablecoin
South Korea is developing a comprehensive regulatory framework for won-backed stablecoins, with a draft bill expected in October from the Financial Services Commission (FSC). The initiative will define requirements for issuance, collateral management, and internal controls as part of the second phase of the Virtual Asset User Protection Act.
The movement gained political traction after campaigns emphasized the need to reduce reliance on dollar-backed stablecoins, which currently account for 99.8% of the global market. Major South Korean banks are studying a joint venture to launch a won token by the end of 2025, aiming to protect the national currency from the growing dominance of the digital dollar.
Why it matters:
✅ South Korea joins the regional Asian movement for sovereign stablecoins, seeking alternatives to dollar dominance.
✅ A won stablecoin could strengthen regional trade ties and reduce FX costs for Asian companies.
✅ Coordinated timing suggests a regional strategy to build alternatives to rails dominated by U.S. issuers.
Japan Prepares to Approve First Regulated Yen Stablecoin
Japanese fintech JPYC is awaiting approval from the Financial Services Agency (FSA) for a yen-backed stablecoin, set to become the first officially regulated in the country. Launch is expected in 2025, with projected issuance of $7 billion over the next three years, focusing on payments and cross-border transfers.
CEO Noritaka Okabe positions the project as an “electronic payment method,” deliberately distancing it from the label of speculative cryptoasset. Japan has been building stablecoin-specific legislation since June 2023, with Circle/USDC already approved as the first digital dollar. But JPYC will be the pioneer among local currencies.
The move comes in parallel with regulatory advances in other Asian countries, such as South Korea. The trend reflects a coordinated regional effort to create alternatives to dollar-backed stablecoins, strengthening monetary sovereignty and creating multilateral bridges for international trade. For countries like Brazil, with strong commercial ties to Asia, the rise of regional stablecoins could unlock new efficiencies in bilateral relations.
Why it matters:
✅ Japan is setting a regulatory benchmark for national stablecoins, likely inspiring other markets.
✅ The Asian drive for local stablecoins strengthens financial sovereignty and international economic collaboration.
✅ Countries with strong Asian trade relations can benefit from this new infrastructure, reducing costs and increasing agility.
Lumx Expands Role in Strategic Events and Consolidates Regional Presence
This week was marked by active participation in initiatives strengthening the stablecoin ecosystem in Latin America. Contributions to the “Stablecoin Payments - The Trillion Dollar Opportunity” report, a partnership between Keyrock and Bitso, highlighted critical data: traditional bank transfers averaging $200 can carry costs up to 13%, while stablecoins drastically reduce these costs with faster settlement.
At Rio Innovation Week, Lumx joined two panels on stablecoins and the digital economy, reinforcing Latin America’s position as a relevant region for payment transformation, given its high levels of dollarization, banking gaps, and strong demand for efficiency. The discussions confirmed the shift from technological experimentation to safe, practical application.
The agenda continues with Stablecoin Conference 2025 in Mexico City, where Lumx will host its own booth and join the panel “Collaborating for Success: Building a Unified Digital Finance Ecosystem”, discussing collaboration, innovation, and the future of regional digital payments.
Caio Barbosa at the panel: Your Money on Autopilot - The Future of Invisible Finance
This edition highlights a unique moment of systemic restructuring in global payments: traditional institutions competing with digital-native players, governments experimenting with stablecoins for public efficiency, countries developing sovereign monetary alternatives, and Latin America emerging as a laboratory of practical innovation. Understanding and engaging with these transformations has become strategic for companies, governments, and professionals aiming to lead in the emerging digital economy.
See you in the next edition. Wishing you a great week ahead.
