Stablecoin

U.S. President Donald Trump is scheduled to interview Federal Reserve Governor Christopher Waller on Wednesday as one of five candidates to succeed Jerome Powell as Fed Chair. Waller, known for his supportive views on stablecoins and DeFi, currently has a 15% chance of being nominated on Polymarket, compared with higher odds for Kevin Hassett and Kevin Warsh. Some market observers expect that a new Fed Chair more inclined toward rate cuts could become a constructive signal for the crypto market.

U.S. banks supervised by the FDIC can seek approval to issue payment stablecoins after the FDIC board approved a proposed GENIUS Act rule. The blueprint requires 1:1 reserves, monthly attestations, and a 30/120-day review clock, with a 60-day comment period and a temporary safe harbor of up to 12 months.

The Bank of Canada has outlined that any future Canadian stablecoins must maintain a one-to-one peg with central bank money and be fully backed by high-quality liquid assets to ensure convertibility at par. Governor Tiff Macklem also called for clear, fee-free redemption terms and tied stablecoin oversight to broader payments and open banking modernization expected to advance by 2026.

The Bank of Canada has set out guidance that from 2026 it will only approve high-quality stablecoins that are fully backed, maintain 100% reserves, and are pegged 1:1 to a central bank currency. Issuers will need robust risk management, transparent redemption terms, and strong data and cybersecurity protections as part of a broader effort to modernize Canada's financial system and make digital payments faster and safer.

On December 16, 2025, the FTC said it has proposed a settlement with Illusory Systems, operator of the Nomad bridge, following the August 1, 2022 exploit. The order would prohibit misleading security claims, mandate a formal program with biennial independent assessments, and require the return of recovered funds after about $186 million was stolen and client losses exceeded $100 million.

The FDIC released a 38-page proposal setting out how FDIC‑supervised banks could issue payment stablecoins through subsidiaries under the GENIUS Act. The plan outlines approval criteria spanning reserves, redemption, governance, and safety and soundness, and is open for public consultation before further rule-making. If approved, the FDIC would serve as the primary federal regulator for those subsidiary activities.

On Tuesday, Governor Tiff Macklem said the Bank of Canada will permit only fiat-linked, high-quality stablecoins, requiring a 1:1 peg and backing with high-quality liquid assets, under rules expected in 2026. A November 2025 budget report outlined reserve, redemption and risk-management obligations for issuers, while Canada advances real-time payments and open banking.

On December 17, the FDIC approved a notice of proposed rulemaking for payment stablecoins, opening a public comment process. The plan outlines how insured banks could apply to issue stablecoins through subsidiaries and aligns with the federal GENIUS Act. Acting Chairman Travis Hill highlighted security and robustness as priorities.

Stablecoin payments firm RedotPay has raised $107 million in a Series B round led by Goodwater Capital, taking its total funding for 2025 to $194 million. The company plans to use the capital for acquisitions, additional licensing, compliance expansion and hiring as it pushes into new markets and broadens its payments products.

World Liberty Financial (WLFI) said its USD1 stablecoin has expanded to the Canton Network, targeting a regulated, interoperable environment for institutions. Binance recently added USD1 spot pairs for BNB, ETH and SOL and outlined a 1:1 conversion of Binance-Peg BUSD collateral to USD1, while USD1 circulation stands at about $2.8 billion.