In a letter to the G20, Financial Stability Board Chair Andrew Bailey called for further attention to be given to assessing the increasing role of stablecoins for payment and settlement purposes, on account of under-explored potential risks, in part due to the pace of market developments. He called for the FSB to continue to ensure that it is implementing its agreed recommendations, monitoring developments in this area and collaborating across jurisdictions and with the standard-setting bodies where relevant. [Read more at the FSB]
The U.S. Federal Reserve Board (FRB), Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) have published a statement outlining their expectations for banks providing crypto custody services. The statement emphasizes the importance of banks having the necessary knowledge and understanding of crypto safekeeping to conduct the activity safely and in compliance with regulations. It also highlights the risks associated with cryptographic keys, legal and compliance risks, and third-party risks, particularly in the case of sub-custodians. This guidance comes after a shift in regulatory policies since President Trump’s second administration, which rolled back the Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 121 that effectively prevented banks from providing crypto custody. [Read more at the FRB]
In an article published on Bloomberg, Mastercard’s chief product officer, Jorn Lambert, says stablecoins have a long way to go before becoming a mainstream payment tool. While stablecoins offer promising attributes like high speed and low costs, they lack essential attributes like a seamless user experience and wide distribution to consumers. Mastercard is positioning itself as a bridge between digital assets and traditional finance, providing infrastructure to make stablecoins usable at scale by leveraging its global network and security safeguards. However, Lambert notes that stablecoin adoption faces significant hurdles, including consumer adoption and friction in online checkout experiences, making it difficult to clear in the near-term. [Read more at Bloomberg]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The Bank of England’s (BoE’s) Financial Market Infrastructure Executive Director, Sasha Mills, outlined the central bank’s vision for digitalizing wholesale financial markets through tokenization of assets and smart contracts on distributed ledger technology (DLT). She pointed to the Bank’s updated thinking on settlement assets, particularly allowing systemic stablecoins to be backed by remunerated high quality liquid assets (HQLAs) rather than solely unremunerated central bank deposits. Ms. Mills highlighted progress through the Digital Securities Sandbox and the UK Government’s Digital Gilt pilot (DIGIT), while outlining plans for enhanced access to the upgraded real time gross settlement (RTGS) service and exploring synchronization interfaces to enable conditional settlement across different ledger systems. She emphasized that the future financial system will likely be a “mixed ecosystem” where new and old structures coexist, requiring interoperability between different systems, and called for moving beyond theoretical discussions to practical implementation of these digital foundations. Ms. Mills also floated potential holding limits for systemic stablecoins, likely be in the region of £10,000 to £20,000 for individuals and £10 million for businesses. [Read more at the BoE]
The Monetary Authority of Singapore (MAS) published a paper on the implementation of tokenized deposits and shared ledger technology in foreign exchange (FX) transaction banking within Project Guardian. It presents three architectural models: single-bank ledgers for internal transfers, multi-bank shared ledgers requiring governance consensus, and cross-ledger interoperability through protocols like hash time-locked contracts. The architecture relies heavily on price oracles for FX rate discovery and smart contracts for programmable compliance. However, critical technical challenges remain unaddressed, including consensus mechanism selection, cross-chain settlement finality, oracle failure scenarios, and performance scalability for institutional-grade transaction volumes in distributed ledger environments. [Read more at the MAS]
The United Nations Development Programme (UNDP) published a five-stage methodology for implementing central bank digital currencies (CBDCs) to advance financial inclusion in emerging economies. The methodology progresses through: (1) understanding financial inclusion barriers and user needs, (2) CBDC preparation including cost-benefit analysis and stakeholder coordination, (3) user-centric design and prototyping with emphasis on privacy protection and accessibility, (4) piloting to test assumptions and gather feedback, and (5) full implementation with ongoing monitoring and capacity building. The paper emphasizes that retail CBDCs, when properly designed with features like offline functionality and simplified identification requirements, can address persistent barriers such as high transaction costs, limited documentation, and poor connectivity that exclude underserved populations from traditional financial services. However, the authors stress that CBDCs should be viewed as one component of broader Digital Public Infrastructure rather than standalone solutions, and successful implementation requires robust stakeholder engagement, regulatory frameworks, and continuous adaptation to ensure these digital currencies effectively serve vulnerable populations while maintaining security and sustainability. [Read more at the UNDP]
The OECD published a paper that examines competition in the rapidly growing mobile payment services sector. While mobile payments offer opportunities for innovation and enhanced competition by potentially bypassing traditional payment rails controlled by banks and card networks, several competition risks are emerging. These include market concentration, data asymmetries favoring BigTech companies, barriers to accessing key technologies like NFC, and exclusionary practices such as self-preferencing. Despite entry from FinTechs, BigTech firms, and mobile network operators, traditional payment providers have largely preserved their market positions through structural advantages and regulatory barriers. The paper recommends combining proactive competition enforcement with targeted pro-competitive regulations, including open banking frameworks, data portability requirements, interoperability standards, and development of alternative public payment infrastructures. Success requires coordination between competition authorities and financial regulators to ensure mobile payment markets remain contestable and deliver benefits to consumers and merchants. [Read more at the OECD]
The Central Bank of Bahrain (CBB) introduced a framework for licensing and regulating stablecoin issuers. It mandates that any entity seeking to issue, mint, burn, custody, or offer stablecoins from within Bahrain must be licensed and obtain CBB approval—unregulated activity is prohibited . Licensed stablecoin issuers will be permitted to issue single currency stablecoins backed by Bahraini Dinar (BHD), United States Dollar (USD), or any other fiat currency acceptable by the CBB, with a strict 1:1 high-quality liquid reserve requirement (cash and demand deposits held at banks with at least an AA‑ credit rating or its equivalent, debt securities issued by the CBB, or repurchase agreements (repos) backed by short‑term government money‑market instruments). The module also allows yield-bearing variants—returns generated solely from interest or Sharia-compliant rewards on reserve assets—but caps issuers from offering interest tied to user balances. [Read more at the CBB]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The U.S. National Bureau of Research (NBER) published a paper that develops a calibrated New Keynesian DSGE model featuring monopolistic banks to assess the macroeconomic impact of introducing a remunerated central bank digital currency (CBDC). The analysis shows that households gain from enhanced liquidity services and higher deposit interest rates due to reduced bank market power, while banks experience lower profits and lending volumes. Exploring economies across different interest rate regimes, the authors identify significant welfare improvements from remunerated CBDC adoption, especially in economies with high interest rates where banks have substantial market power in deposit markets. They propose a practical CBDC interest-rate setting rule—setting it as the greater of zero and the policy rate minus one percentage point—which closely approximates the optimal rate found in their model. [Read more at the NBER]
Ripple has filed an application with the Office of the Comptroller of the Currency (OCC) to obtain a national bank charter, following in the footsteps of Circle’s similar application just two days earlier. The application comes as stablecoin issuers prepare for expected regulatory requirements under the GENIUS Act legislation, which recently passed the Senate. Ripple has also filed for a Federal Reserve master account through its Standard Custody subsidiary, which would allow it to hold RLUSD stablecoin reserves directly with the Fed and provide more flexibility for processing digital assets. [Read more at X]
Moody’s partnered with fintech startup Alphaledger in June 2025 to run a pilot program exploring how traditional credit ratings could be integrated into blockchain systems using the Solana network. The experiment involved creating a tokenized municipal bond on Solana, with Moody’s providing a real credit rating that was then pushed directly onto the blockchain via API, making it permanently embedded and publicly viewable as part of the token’s metadata. This allows smart contracts and decentralized applications to automatically query bond ratings without needing external verification, potentially enabling real-time credit assessments, automated compliance, and new forms of programmable financial infrastructure. [Read more at CoinTelegraph]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The Swiss National Bank (SNB) is extending and expanding Project Helvetia, which examines various approaches to settling tokenized assets in central bank money, for a further year and continue the pilot until at least mid-2027. (The project was slated to end a two-year extension on June 2026.) Additionally, the SNB is expanding Project Helvetia to include the settlement of tokenized assets with traditional central bank money through a real time gross settlement (RTGS) link, providing BX Digital with a production environment to test this approach alongside the existing wholesale central bank digital currency (CBDC) settlement on the SIX Digital Exchange platform. The extension allows for a direct comparison between the two settlement approaches in a production environment to provide further insights into their respective advantages and disadvantages. [Read more at the SNB]
Robinhood launched a tokenization-focused layer-2 blockchain and introducing stock token trading European Union (EU) users. Built on Arbitrum, the new layer-2 network will enable the issuance of over 200 US stock and exchange-traded fund (ETF) tokens, giving European investors access to U.S. assets. Robinhood’s stock tokens will have zero commissions and be available for trading 24 hours a day, five days a week. [Read more at Robinhood]
Paxos has launched its Global Dollar stablecoin (USDG) in the European Union in compliance with local Markets in Crypto-Assets (MiCA) regulations, with initial distributors including Kraken and Gate. The stablecoin operates under a revenue-sharing model where Paxos shares most of the revenues earned on reserves with distribution partners, departing from industry norms. Originally issued under Singapore laws, USDG entered the EU market through Paxos’s acquisition of Finland’s Membrane Finance, which held a MiCA license. The launch highlights the complexity of managing multi-jurisdictional stablecoins, as EU regulations require 30% of reserves to be held as cash in local bank accounts, necessitating a rebalancing process that has drawn criticism from EU parliamentarians who worry about potential regulatory circumvention during crisis situations. [Read more at Paxos]
Circle submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank, First National Digital Currency Bank, N.A. If approved, the bank would be authorized to operate as a federally regulated trust institution, subject to OCC oversight, and would oversee the management of the USDC Reserve on behalf of Circle’s U.S. issuer. An approval would also further strengthen the infrastructure that supports the issuance and circulation of USDC and would offer digital asset custody services to institutional customers. A federally regulated trust charter would also help Circle meet expected requirements under the proposed GENIUS Act legislation, which would represent a meaningful step forward in integrating digital assets into the broader U.S. financial system. [Read more at Circle]
Danmarks Nationalbank published a paper that examines how distributed ledger technology (DLT) could transform financial market infrastructure while maintaining the critical role of central bank money in interbank settlements. The paper explains that while DLT platforms offer potential benefits like streamlined capital markets, automated smart contracts, and reduced intermediaries, they currently cannot integrate with central bank money systems, creating risks of market fragmentation and reduced monetary policy effectiveness. To address this challenge, central banks are exploring two main approaches: connecting existing central bank systems to DLT platforms through interoperability solutions, or developing new systems where central bank money and digital assets operate on the same DLT platform. The analysis emphasizes that regardless of technological advances, maintaining central bank money as the primary settlement asset is essential for financial stability, and Denmark will collaborate with the European Central Bank (ECB) through the TARGET Services platform to ensure future settlement infrastructure developments benefit the Danish financial system while preserving the unique safety and liquidity properties of central bank money. [Read more at Danmarks Nationalbank]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
Ripple will drop its cross appeal in its long-running case with the U.S. Securities and Exchange Commission (SEC) after U.S. District Judge Analisa Torres denied a proposal from Ripple Labs and the SEC to cut a $125 million penalty to $50 million and toss out an injunction that restricted Ripple’s ability to sell its XRP tokens. The SEC is also expected to drop its appeal so everyone can move on. [Read more at X]
The IMF published a paper that examines the economic dilemma posed by network effects in digital payment technologies, where dominant platforms can limit user choice while market fragmentation reduces network benefits. Focusing on India’s Unified Payments Interface (UPI), the authors find that interoperability significantly increased digital payment usage, especially in regions with higher initial fragmentation. The unification of networks increased total usage of digital payments by more than 50% in the year after integration. [Read more at the IMF]
The IMF published a paper that takes stock of developments and policy issues related to digital payments innovations across sub-Saharan African (SSA) drawing on insights from a recent IMF survey of SSA central banks. The paper highlights the critical role of robust digital infrastructure and promotes a competitive, interoperable ecosystem with active private‑sector participation. Mobile money and fast payment systems (FPS) are encouraged as the cornerstone of financial inclusion. Central bank digital currency (CBDC) is seen as a complementary tool but only justified when clear market failures exist. [Read more at the IMF]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The European Parliament ECON Committee published a paper that analyses whether dollar-denominated stablecoins pose risks to European monetary policy and assesses the potential of the digital euro as a countermeasure. It concludes that large-scale adoption of foreign stablecoins in Europe is unlikely due to strong trust in the euro, advanced local payment systems, and regulatory barriers like MiCA. Although stablecoins could theoretically disrupt interest rate transmission, bank lending channels, and exchange rate dynamics, these impacts are minimal under current conditions. The paper argues that the digital euro could offer a credible public alternative to stablecoins, but warns its effectiveness depends on design choices such as holding limits, privacy guarantees, and costs to merchants. Ultimately, while stablecoins currently pose little threat, continuous monitoring is recommended, and the digital euro’s success will hinge on addressing user needs and competitive functionality. [Read more at the European Parliament]
The United Nations Development Programme (UNDP) published a paper that outlines a methodology for the design, testing, and implementation of central bank digital currencies (CBDCs) to advance financial inclusion. It suggests design features that reduce identity management requirements in low-risk contexts to remove the need for bank accounts or minimum balances and offer offline functionality to mitigate the impact of physical remoteness. In addition, CBDCs have the potential to address price impediments and make financial services more affordable for the unserved and underserved populations. However, it gives short shrift to alternatives that could achieve the same end goals. For example, a 2023 IMF Fintech Note points out that CBDC is not uniquely equipped to overcome such financial inclusion barriers as low financial literacy, cultural factors, poor digital connectivity infrastructure and low trust in formal financial institutions. Also, other solutions may tackle the barriers to financial inclusion that are not addressed by CBDC, such as regulations to limit fees of existing financial services, policies requiring banks to offer basic deposit accounts without fees or minimum balance requirements, fast payment systems, open banking initiatives and open API standards to support competition and interoperability of existing financial services. [Read more at the UNDP]
The Bank of Canada published a paper that explores how programmability affects the uniformity and social utility of money using a stylized theoretical framework. It shows that programmable digital currencies emerge naturally when users value the ability to commit to future payments, which they find useful privately. However, this programmability can lead to fragmenting money into different forms with varying liquidity, posing public costs when informational frictions impede their use. The authors find that banning programmability could reduce welfare if informational frictions are minor—but may help if commitment frictions are low. Their results imply that programmable currencies could offer greater social benefits in decentralized, permissionless blockchain environments than in centralized systems. [Read more at the Bank of Canada]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The European Commission (EC) has launched a study to assess existing technology and technology preferences for offline electronic proximity transactions. The study has three objectives: (1) conduct a market analysis and forecast future trends for offline payments; (2) perform a technology assessment of currently available solutions and explore future innovation scenarios and; (3) identify barriers to innovation. The study is kicking off with a survey conducted by Bearing Point to seek opinions from a consumer perspective to help understand current end user preferences on electronic payments in terms of devices, value transfer technologies but also possible hurdles that may serve as barriers to adoption of potentially innovative payment solutions. [Read more at the EC]
In collaboration with the Bank for International Settlements Innovation Hub (BISIH), the Bank of England (BoE) has launched the DLT Innovation Challenge to engage with the private sector to better understand the implications of incorporating distributed ledger technology (DLT) into wholesale central bank settlement, and demonstrate how to securely transact and settle central bank money on an external ledger that is not controlled by the Bank. In particular, it will explore environments where trust is not inherent—where participants must rely on mechanisms other than central bank control of the ledger to ensure security, finality, and integrity. This framing allows us to test how trust can be established in decentralized or externally governed infrastructures, and to draw insights that may inform the wider wholesale experimentation program. [Read more at the BoE]
The Financial Action Task Force (FATF) published guidance on aligning financial inclusion with anti-money laundering and counter-terrorist financing (AML/CFT) measures. It promotes a risk-based approach (RBA) to ensure proportionate measures, allowing simplified due diligence in lower-risk scenarios while maintaining robust controls for higher risks. The guidance addresses barriers to financial inclusion, such as identity verification challenges and de-risking, and provides examples of best practices from various countries. It also highlights the role of digital financial services and public-private collaboration in expanding access to regulated financial systems for underserved populations, ensuring integrity and inclusivity. The document is non-binding but encourages policymakers, regulators, and financial institutions to adopt flexible, risk-sensitive frameworks. [Read more at the FATF]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The U.S. Senate has passed the GENIUS Act, a bipartisan bill aimed at establishing a regulatory framework for stablecoins. The legislation seeks to provide clarity for issuers, ensure consumer protections, and maintain financial stability while fostering innovation in the digital asset space. Key provisions include requirements for stablecoin issuers to maintain reserves, comply with anti-money laundering (AML) rules, and undergo regular audits. The bill now moves to the House of Representatives for further consideration. [Read more at Congress.gov]
The Digital Euro Association (DEA) published a position statement that advocates for a balanced and innovative approach to digital money in Europe, focusing on stablecoins, retail and wholesale digital euros, and deposit tokens. The DEA emphasizes regulatory clarity, interoperability, user protection, and privacy, supporting the Markets in Crypto-Assets Regulation (MiCAR) for stablecoins while calling for proportional implementation to foster innovation. For the wholesale digital euro, the DEA highlights efficiency gains through distributed ledger technology (DLT), global interoperability, and collaborative governance. The retail digital euro should prioritize public good, privacy, and user-centric design, ensuring accessibility and legal clarity. Deposit tokens are seen as complementary to public money, requiring regulatory clarity and consumer protection. Overall, the DEA promotes a cohesive digital financial ecosystem that strengthens Europe’s monetary sovereignty, fosters innovation, and ensures trust and inclusivity. [Read more at the DEA]
JPMorgan Chase is reportedly planning to launch a tokenized deposit on Coinbase’s Base Ethereum Layer 2 network. It will operate on a public permissioned basis and will be for use only by the bank’s institutional clients. Unlike stablecoins issued by nonbanks, JPMD operates within the regulated commercial banking system and is subject to standard supervisory requirements. [Read more at CNBC]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The Bank of Canada (BOC) published a paper that explores the technical architecture for a retail central bank digital currency (CBDC) tailored for basic payments. The authors analyze a micro-partitioned system based on the UTXO (unspent transaction output) funds model, using a two-tiered model based on OpenCBDC 2PC as a representative design. It found that the baseline design handles over 250,000 transactions per second (TPS), though privacy-preserving variants (e.g., Pedersen commitments) reduce performance. Privacy is enhanced by minimizing central bank visibility into user data, with optional anonymity for users. Challenges include integrating with existing retail payment systems, auditing large-scale monetary supplies, and ensuring core system resilience. The study concludes that such architectures are feasible for basic payments but highlights areas needing further research, such as compliance mechanisms and recovery protocols for system outages. [Read more at the BOC]
Coinbase is seeking U.S. Securities and Exchange Commission (SEC) approval to offer tokenized equities. Chief Legal Officer Paul Grewal described the initiative as a “huge priority,” emphasizing the benefits—lower trading costs, faster settlement, and 24/7 access—while acknowledging lingering concerns over liquidity, global standards, and regulatory clarity. To proceed in the U.S., Coinbase must secure a “no-action letter” or similar exemptive relief from the SEC, since it isn’t registered as a broker-dealer. Grewal did not specify whether a formal SEC request had been filed or when the launch might occur, though the move follows rival Kraken’s recent rollout of tokenized U.S. equities outside the United States. [Read more at Reuters]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The U.S. National Bureau of Economic Research (NBER) published a paper that investigates the trade-off between price stability and run risk in stablecoins, focusing on the role of arbitrage concentration. It document that stablecoin issuers, such as Tether (USDT), limit the number of arbitrageurs who can redeem stablecoins for cash, leading to concentrated arbitrage. They argue that while more efficient arbitrage improves price stability by reducing secondary market price deviations, it also increases run risk by lowering the price impact of investor sales, thereby encouraging panic selling. The study develops a theoretical model showing how issuers balance these trade-offs and analyzes policy implications, such as the unintended consequences of regulations promoting unconstrained redemptions. The findings highlight the need for coordinated policies addressing both arbitrage efficiency and reserve asset liquidity to mitigate systemic risks in the stablecoin ecosystem. [Read more at the NBER]
Kings College London (KCL) Business School published a paper that explores the future of stablecoins and outlines key dimensions for their sustainable growth and adoption. It emphasizes the need for a standardized approach across seven critical areas: monetary policy (minting/burning, reserve tracking), reserve asset verification, compliance (identity, regulatory rules), interoperability (cross-chain functionality), privacy (confidential transactions), fees and yield generation (business models), and roles/events (governance and transparency). The author argues that while some aspects, like mint/burn functions, are mature enough for standardization, others, such as privacy and compliance, require further industry consensus. The paper highlights the importance of transparency in reserve assets, the potential for yield-bearing stablecoins despite regulatory skepticism, and the role of interoperability protocols like Chainlink CCIP. Ultimately, it calls for coordinated development to avoid fragmentation and ensure stablecoins can fulfill their promise as a foundational element of on-chain finance. [Read more at the KCL Business School]
The Asian Development Bank Institute (ADBI) published a paper that examines the impact of central bank digital currency (CBDC) adoption on bank stability in India and China, using a “benefit-of-the-doubt” approach to construct a multidimensional Bank Stability Index (BSI). The index is based on 2013-2022 data from 74 banks across five dimensions; capital adequacy, profitability, asset quality, liquidity, and efficiency. The study finds that CBDC adoption positively affects bank stability, with a stronger impact in India compared to China. The study also reveals a negative moderating role of monetary policy, suggesting that the stabilizing effect of CBDC is enhanced during accommodative monetary policy stances, and diminished when policy is tight. The research concludes that careful management of CBDC alongside appropriate monetary policy can enhance overall financial stability. [Read more at the ADBI]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
