RWA Weekly: Republicans urge Senate to adopt House crypto bill; Qivalis, a union of 12 EU banks, plans to launch a euro stablecoin.

Highlights of this episode

This week's statistics cover the period from February 27, 2026 to March 6, 2026.

This week, the total on-chain market capitalization of RWA steadily increased to $26.52 billion, and the total market capitalization of stablecoins rebounded for two consecutive months to $299.09 billion. The number of monthly active addresses continued its recovery trend, and the market is entering a stage where the total supply expands steadily and user activity improves in parallel.

The regulatory framework has received important guidance: the Federal Reserve clarified that the capital rule for tokenized securities is "technology neutral," clearing the way for banks to participate in on-chain assets; the US Senate housing bill unexpectedly included a temporary ban on CBDCs, the debate over stablecoin yields continues, and the OCC issued detailed rules to restrict indirect interest payments; the Bank of Japan launched a blockchain-based central bank currency settlement trial, and global regulation is moving towards refinement amid disagreements.

At the project level, there are two main themes: "the full on-chaining of traditional finance" and "the rise of non-USD stablecoins": Qivalis, formed by 12 EU banks, plans to launch a Euro stablecoin in the second half of the year; AllUnity in Germany issued the Swiss Franc stablecoin CHFAU; the Canadian government and TD Bank successfully piloted a CAD 100 million blockchain bond; and Delin Holdings is promoting the tokenization of RWA for its properties and funds.

Payment penetration continues: Visa and Stripe plan to expand stablecoin card issuance to over 100 countries, and Western Union partners with Crossmint to launch USDPT on Solana.

In terms of financing, ARQ completed a $70 million funding round to expand the financial applications of stablecoins, QFEX completed a $9.5 million seed round to launch the high-leverage RWA trading platform, and Tether made a strategic investment in Axiym to promote the integration of USDT into compliant payment networks.

Driven by an increasingly clear regulatory framework and deep involvement from mainstream institutions, RWA and stablecoins are moving from "technically feasible" to a new stage of "regulatory certainty" and "ecosystem formation." Compliance efficiency, user expansion, and scenario deepening will jointly form the cornerstone for the next stage of growth.

Data Perspective

RWA Track Panorama

According to the latest data disclosed by RWA.xyz, as of March 6, 2026, the total market capitalization of RWA on the blockchain reached US$26.52 billion, an increase of 6.51% compared to the same period last month; the total number of asset holders was approximately 660,800, an increase of 4.35% compared to the same period last month, slightly lower than the growth rate of asset size, indicating that the incremental funds are mainly allocated by institutions or large investors.

Stablecoin Market

The total market capitalization of stablecoins rebounded moderately to $299.09 billion, a slight increase of 0.03% month-over-month, maintaining positive growth for two consecutive months and further consolidating the stabilization of liquidity. Monthly transaction volume fell slightly to $9.73 trillion, a decrease of 6.92% month-over-month, ending the previous growth trend and reflecting a temporary cooling in market settlement demand. The turnover rate of outstanding funds (transaction volume/market capitalization) remained at 32.5 times, still at a historically high level but showing a marginal slowdown.

The total number of monthly active addresses increased to 53.48 million, a 5.33% increase compared to the same period last month; the total number of holders steadily increased to 232 million, a 5.28% increase compared to the same period last month. These two figures align, indicating that retail investor participation continues to recover and user activity metrics are improving.

Data shows that the market has entered a recovery phase characterized by steady overall expansion and improved user activity, but the decline in transfer volume requires attention to the sustainability of fund activity.

The leading stablecoins are USDT, USDC, and USDS. Among them, the market capitalization of USDT increased by 0.09% month-on-month; the market capitalization of USDC increased slightly by 0.002% month-on-month; and the market capitalization of USDS increased slightly by 0.04% month-on-month.

Regulatory news

The Federal Reserve clarified the capital rules for tokenized securities, stating that the framework is "technology-neutral."

According to The Block, the Federal Reserve has released a Q&A document clarifying that banks should treat tokenized securities according to existing capital rules, emphasizing that the existing framework is "technology-neutral." The Fed stated that the technology used to issue or transfer securities (including blockchain technology) will not affect its regulatory capital treatment, and eligible tokenized securities should be treated under the same rules as non-tokenized securities. Tokenized securities can be used as financial collateral if they meet the same legal and risk management requirements as traditional securities. The Fed added that capital rules do not provide differential treatment regardless of whether permissioned or permissionless blockchains are used. This move follows the SEC's clarification in January that tokenized securities must still comply with federal securities laws, providing further guidance from regulators on the on-chain application of traditional assets.

US Senate housing bill includes provisions banning central bank digital currencies.

According to CoinDesk, the U.S. Senate Banking Committee has included a provision in its newly introduced bipartisan housing bill to temporarily ban the Federal Reserve from issuing a central bank digital currency (CBDC). The "21st Century Road to Housing Act," co-sponsored by Committee Chairman Tim Scott and Senior Member Elizabeth Warren, aims to promote housing construction in the United States by reducing regulatory hurdles.

In this 303-page bill, a two-page CBDC ban stipulates that the Federal Reserve Board or Federal Reserve Banks may not issue or create CBDCs or any digital assets substantially similar to them, directly or through intermediaries such as financial institutions. The ban is valid until December 31, 2030, and includes exceptions for permissionless, private "dollar-denominated" currencies that fully retain the privacy of physical currency. The White House statement supporting the bill explicitly mentions its support for this CBDC clause, stating that it "prevents the development of CBDCs that could pose a significant threat to individual privacy and freedom." Congress has previously attempted to pass similar bans multiple times; the House passed it as a separate bill last year, but it has yet to receive full approval from Congress.

The debate over stablecoin yields continues, with French Hill urging the Senate to adopt the House crypto bill.

According to The Block, amid the ongoing controversy surrounding stablecoin yields, House Republican French Hill has suggested that the Senate directly adopt the CLARITY Act, a crypto market structure bill already passed by the House, to expedite the legislative process. This bill passed the House last year with bipartisan support but did not address the current Senate focus on stablecoin yields. Hill stated that if the Senate cannot reach a clear conclusion, he recommends using the House version, which has the support of 78 Democrats, as a solution. He also pointed out that the Treasury Department could intervene, noting that the OCC released a proposal last week seeking public comment on the implementation of the GENIUS Act.

The Bank of Japan will conduct a blockchain-based central bank currency settlement trial.

According to Jinshi News, Bank of Japan Governor Kazuo Ueda stated that, looking to the future, blockchain technology has the potential to develop into an infrastructure for transactions and settlements involving various assets and services (including delivery versus payment). To enable the development of a new era of financial ecosystems (characterized by new financial services arising from the integration of AI and blockchain), it is necessary to establish a mechanism to ensure the transparency and authenticity of transactions, particularly the security and robustness of payments. The Bank of Japan will conduct technical trials on a blockchain-based system for settlement using central bank currency in the form of demand deposits.

Australia approves license for compliant Australian dollar stablecoin based on XRP Ledger

According to Solid Intel, Australian regulators have granted a regulated digital currency license to a digital Australian dollar stablecoin issued on XRP Ledger, allowing banks to use the compliant AUD stablecoin for business settlements and payments on-chain.

Russia's Ministry of Finance is considering a new stablecoin bill.

According to Cryptopolitan, the Russian Ministry of Finance is considering a new stablecoin bill to capitalize on its "enormous potential." The ministry stated that it hopes to introduce a separate stablecoin bill rather than bundling it with new regulations in the upcoming cryptocurrency exchange law. Alexey Yakovlev, head of the Ministry of Finance's Financial Policy Department, stated that stablecoins possess "enormous potential" and that the government plans to address the regulatory issues of stablecoins as soon as possible after the State Duma passes a law prohibiting citizens from trading cryptocurrencies on unlicensed platforms.

Stablecoins currently lack legal status under Russian law. The Central Bank of Russia previously created a category called "Foreign Digital Rights," which allows certain stablecoins to be approved for cross-border payments. Last October, the ruble-pegged stablecoin A7A5 was approved as the first such asset to be used for overseas trade.

Local Observations

Delin Holdings is advancing the tokenization of RWA for Central Properties and Animoca Fund.

According to AASTOCKS, Delin Holdings stated that the Hong Kong Securities and Futures Commission (SFC) had "no further comments" on its RWA tokenization business plan on February 24, which allows for the tokenization and distribution of Delin Building LPF and Animoca Brands LPF fund equity. Delin Securities plans to distribute the tokens to professional investors, with the tokens to be issued by the solution provider on HashKey Chain and XRPL.

Project progress

Kraken launches xChange, a unified execution layer for xStocks tokenized stock trading.

According to The Block, Kraken launched xChange, an on-chain trading engine and unified execution layer for its xStocks tokenized assets, enabling 24/7 trading on Ethereum and Solana. The platform supports direct trading of over 70 tokenized US stocks and ETFs, including popular assets such as Apple, Tesla, and the S&P 500. xChange ensures complete execution through atomic settlement, with pricing derived from the real-time open market. xStocks also announced an integration with 1inch on the same day to enhance xChange's on-chain liquidity.

Bitfinex Securities Resumes Issuance of USDT-Denominated Tokenized Bonds

According to Cointelegraph, Bitfinex Securities, a subsidiary of Bitfinex, announced the resumption of its USDT-denominated tokenized bond issuance to the Luxembourg-based securitization fund ALTERNATIVE, with an expected issuance size exceeding $10 million. These bonds will be issued and settled on the Bitcoin sidechain Liquid Network, with fundraising, coupon payments, and principal repayment all executed on-chain. Since 2023, Bitfinex Securities has completed four tokenized bond issuances totaling $6.2 million, three of which have matured and been fully repaid, returning approximately $1 million in principal to investors.

Progmat migrates Japan's largest security token platform to Avalanche L1

According to Ledger Insights, Progmat, a Japanese security token platform incubated by MUFG, announced a partnership with Ava Labs to migrate its current system, based on the Corda Enterprise Ledger, to the Avalanche L1 blockchain by the end of June 2026. This move by Progmat aims to transfer existing and future security tokens to an Ethereum-compatible public blockchain ecosystem, improving interoperability with various permissionless chains. Meanwhile, its existing interoperability partner, Datachain, will continue to support the issuance of security tokens on non-Avalanche chains and provide delivery versus payment (DvP) and payment versus payment (PvP) settlements based on various stablecoins.

The Canadian government and TD Bank successfully piloted a C$100 million bond issuance using Hyperledger Fabric technology.

According to The Block, the Bank of Canada announced the completion of its tokenization pilot project, "Project Samara," successfully issuing a C$100 million government bond using Hyperledger Fabric technology. The project, issued by Export Development Canada with participation from TD Bank and Royal Bank of Canada, involved the issuance of three-month Canadian dollar-denominated bonds to a closed investor group, covering the entire process from issuance, bidding, coupon payment, redemption, and secondary trading.

The project assessment found that blockchain technology can improve operational efficiency, enhance data integrity, and reduce counterparty and settlement risks; however, these advantages are partially offset by increased system complexity, liquidity costs, and shortcomings in the existing regulatory framework. The Bank of Canada stated that despite the technological feasibility, widespread adoption may proceed slowly due to integration challenges and limited willingness to upgrade core infrastructure. This project builds upon the Bank of Canada's Project Jasper, launched in 2016.

Qivalis, an alliance of 12 EU banks, plans to launch a euro stablecoin in the second half of this year.

According to CoinDesk, Qivalis, a consortium of 12 EU banks including ING, UniCredit, BNP Paribas, CaixaBank, and BBVA, is in advanced talks with several cryptocurrency exchanges, market makers, and liquidity providers. It plans to launch a MiCA-compliant euro-pegged stablecoin in the second half of this year, with ample liquidity available from its initial launch on regulated platforms. Qivalis states that the stablecoin will be backed 1:1 by at least 40% bank deposits and the remainder by high-quality, short-duration Eurozone sovereign bonds, held in custody by multiple high-rated institutions, and will support 24/7 redemption. The project is currently applying for MiCA authorization from the Dutch Central Bank, aiming to provide the Eurozone with a regulated alternative to a dollar-denominated stablecoin and a real-time cross-border corporate payment tool.

AllUnity in Germany has issued a compliant stablecoin, CHFAU, pegged to the Swiss franc.

According to a CoinDesk report on February 27, German electronic money provider AllUnity announced the launch of CHFAU, a stablecoin pegged to the Swiss franc, on the Ethereum blockchain. Backed 1:1 by the Swiss franc reserve, the token is designed for institutional payments, settlements, and treasury operations. This marks another expansion of AllUnity's product line, following the launch of its euro-denominated stablecoin last year. CHFAU is regulated by the German Federal Financial Supervisory Authority (BaFin) and is planned to expand to other networks later this year. AllUnity is a joint venture between DWS, Galaxy, and Flow Traders.

Sony Bank has partnered with the Japanese yen stablecoin JPYC, allowing users to purchase JPYC directly from their bank accounts.

According to NADA News, JPYC, the issuer of the Japanese yen stablecoin, announced that it has signed a basic strategic business cooperation agreement with Sony Bank to collaborate on services utilizing JPYC. BlockBloom, Sony Bank's Web3 subsidiary, will also participate in this collaboration, aiming to build a seamless new mechanism connecting banking infrastructure, stablecoins, and the entertainment sector.

In terms of specific initiatives, the two parties are exploring the provision of real-time account transfer functionality on JPYC's "JPYC EX" platform. Once implemented, this feature would allow users to purchase JPYC directly from their Sony Bank accounts without requiring additional transfers. Furthermore, the two companies will explore collaborations with entertainment IPs such as music and games, aiming to create a new experience that integrates payment and fan interaction.

Visa and Stripe plan to expand their stablecoin card offerings to over 100 countries.

According to Solid Intel, Visa and Stripe plan to expand their stablecoin card issuance product to more than 100 countries worldwide.

Western Union partners with Crossmint to facilitate the launch of its stablecoin USDPT on Solana.

According to Cointelegraph, cross-border payments company Western Union has partnered with infrastructure provider Crossmint to support the issuance of its USDPT stablecoin on the Solana blockchain and connect it to a global payments network. This partnership will integrate Crossmint's wallet and payment APIs with Western Union's infrastructure, allowing fintech platforms to use the stablecoin to transfer funds and exchange digital dollars for local currencies through Western Union's more than 360,000 cash withdrawal points worldwide.

PayPal, MoonPay, and M0 jointly launched PYUSDx, enabling applications to create their own stablecoins.

According to Cointelegraph, payment giant PayPal, in partnership with MoonPay and stablecoin platform M0, has launched PYUSDx, designed to help developers create stablecoins pegged to the US dollar and backed by PayPal USD (PYUSD) for use within specific applications, platforms, or ecosystems. The product is scheduled to officially launch next month.

PYUSDx is a tokenization and issuance framework provided by MoonPay Digital Assets, independent of the native PYUSD. Developers can leverage this framework to quickly launch branded, cross-chain-enabled stablecoins with reserve transparency, without having to build monetary infrastructure from scratch. Currently, the DeFi protocol USD.ai has become the first developer to build a dedicated stablecoin for AI infrastructure on this platform. It's important to note that the PYUSDx token is independent of PayPal USD and cannot be directly used, sent, or stored in PayPal or Venmo accounts.

Ripple expands its payment platform into a comprehensive stablecoin infrastructure.

According to Tech in Asia, Ripple has expanded its payment platform into a comprehensive fiat and stablecoin infrastructure, allowing businesses to collect, hold, exchange, and pay funds across 60 markets. This upgrade, based on its recent acquisitions of Palisade and Rail, adds custody management, treasury automation, virtual accounts, and fiat and stablecoin settlement capabilities, all integrated into a single interface. Ripple states that its platform has processed over $100 billion in transactions. Last year, global annual transaction volume reached $33 trillion, with stablecoins accounting for approximately 30% of on-chain activity.

Bridge's Sui ecosystem stablecoin, USDSui, has been launched on the mainnet.

According to The Block, USDsui, a stablecoin issued by Stripe's Bridge ecosystem, has officially launched on its mainnet. This stablecoin aims to provide a unified digital dollar for scalable finance and global payments, supporting access to wallets, DeFi protocols, and applications within the Sui ecosystem, and interoperability with other stablecoins issued by other Bridges. USDsui was first announced last November and is designed to comply with the GENIUS Act, the U.S. stablecoin legislation expected to be passed in 2025.

Angle Protocol announces the phase-out of its EURA and USDA stablecoin businesses.

The Angle Protocol community passed proposal AIP-112, agreeing to orderly shut down the EURA and USDA stablecoins during a one-year transition period. Users can transfer their EURA and USDA from various blockchains back to Ethereum via the Angle App before March 1, 2027, and exchange them for EURC and USDC at a 1:1 ratio. VaultManager positions can be closed and collateral can be retrieved. After the transition period, the protocol will cease operation, and EURA and USDA may become de-pegged. Remaining reserves will be recovered by multisignature and airdropped proportionally to unredeemed holders on Ethereum via Merkl. Users will have a one-year window to claim their tokens after the airdrop begins.

Maitong MSX launched its Pre-IPO section, with the first batch of subscriptions open to four unicorns including SpaceX and ByteDance.

Decentralized RWA trading platform MSX has officially launched its Pre-IPO section and initiated its first offering. The first batch of open offerings includes equity allocations in four unlisted companies: SpaceX ($3 million), ByteDance ($2 million), Lambda Labs ($1 million), and Cerebras Systems ($500,000). Eligible users can participate in the subscription through the MSX platform, with a minimum subscription amount of $10 per transaction.

This Pre-IPO segment is built on the cooperation structure between MSX and Republic. The relevant assets are connected through a compliant channel and held by a regulated third-party custodian. MSX stated that it will expand the scope of Pre-IPO targets in stages in the future and explore technical paths to improve asset liquidity.

Financing Dynamics

JPYC, the issuer of the Japanese yen stablecoin, has completed a Series B funding round of approximately $12 million, led by Asteria.

According to Ledger Insights, JPYC, the issuer of the Japanese yen stablecoin, has completed its Series B funding round, raising approximately 1.78 billion yen (about US$12 million). The round was led by Japanese IT solutions provider Asteria, with the majority of the funding coming from Japanese companies and funds, and BitFlyer Holdings also participating. JPYC is scheduled to launch in October 2025 under Japan's money transfer regulatory framework and is currently the only onshore yen stablecoin. It has partnered with Densan Systems, a payment infrastructure provider covering approximately 65,000 convenience stores in Japan, to explore applications for domestic payments, cross-border remittances, and travel payments within convenience store settings. It also participates in Circle's stablecoin foreign exchange quotation system, StableFX, for cross-border settlements.

ARQ, a financial application focused on stablecoins, has raised $70 million in funding, with Sequoia Capital and Founders Fund participating.

According to Bloomberg, ARQ, a Latin American financial app focused on stablecoins, has raised $70 million in funding, with Sequoia Capital and Founders Fund participating. The funding will be used for rebranding, hiring new employees, and expanding its services beyond dollar-denominated transfers to include wealth management, local currency high-yield accounts, and lending.

ARQ, formerly known as DolarApp, offers services such as multi-currency accounts, digital wallets, foreign exchange, and debit cards, helping users store and transfer funds across borders. It has over 2 million customers in Latin America and annualized transaction volume exceeding $10 billion. ARQ states that it has built the infrastructure connecting traditional banking networks and stablecoin-based payment systems, enabling users to hold foreign currency and conduct transactions.

Cyclops Raises $8 Million in Funding to Advance Stablecoin Payment Infrastructure

According to Fortune, Cyclops, a US-based stablecoin infrastructure startup, has raised $8 million in funding from investors including Castle Island Ventures, F-Prime, and payments company Shift4 Payments. The valuation was not disclosed. Cyclops provides stablecoin settlement technology to merchants in sectors such as airlines and hotels, as well as payment companies. It currently partners with merchants using Shift4, such as helicopter travel company Blade and Blue Origin, providing a "technology pipeline" for their 24/7 stablecoin settlements. Founded by Alex Wilson and two others, the company currently has about 20 employees, profits from transaction fees, and plans to further expand its partnerships with payment and card organizations such as Fiserv, Adyen, Global Payments, Visa, Mastercard, and American Express.

QFEX completes $9.5 million seed funding round and launches 24/7 high-leverage RWA trading platform

QFEX announced the completion of a $9.5 million seed funding round, led by Yuri Sagalov, partner at General Catalyst, with participation from Paul Graham, Y Combinator, and several other institutions and angel investors, including NexusVP, Moonfire VC, Goodwater Capital, Liquid2V, 468 Capital, and RitualVC. QFEX claims to be the first high-leverage exchange led by a traditional finance team, offering 24/7 trading of traditional assets (RWA), providing investors with up to 50x leverage for trading US stocks, commodities, and forex. Team members come from Citadel, Jump Trading, Optiver, Jane Street, Tower Research Capital, and Flow Traders.

Tether makes a strategic investment in Axiym, pushing USDT into compliant payment networks.

According to an announcement on Tether's official website, Tether has announced a strategic investment in fintech company Axiym. Axiym provides distributed funding and clearing infrastructure within a regulated payments ecosystem, enabling the native embedding of USDT into cross-border payments and settlement processes. Axiym claims its network covers 140 countries and 70 currencies and processes real-world settlements daily.

Insights Highlights

A European Central Bank report warns that stablecoins may pose a significant risk to monetary policy.

According to Bloomberg, a working paper from the European Central Bank (ECB) warns that the widespread adoption of stablecoins poses significant risks to eurozone banks and the ECB's monetary policy sovereignty, particularly stablecoins pegged to foreign currencies such as the US dollar. The paper points out that the rapid expansion of stablecoins could trigger a reallocation of retail bank deposits to digital assets, constraining banks' credit intermediation capabilities and increasing uncertainty in the transmission of policy rates to loan volume. These risks would be further amplified if a mature stablecoin market is dominated by non-euro-denominated instruments. The governor of the Dutch central bank stated that stablecoins, due to their reserve management methods, could pose a risk to the core of the financial system. The governor of the German central bank has previously advocated for euro-denominated stablecoins for payments.

TD Cowen: Banks may lose the battle over stablecoin yields, but the stalemate could jeopardize crypto legislation.

According to The Block, TD Cowen analysis suggests that banks may ultimately lose the battle over stablecoin yields because opposing consumer gains is politically unsustainable. However, if this dispute drags on too long, it could jeopardize the passage of the CLARITY Act, the U.S. cryptocurrency market structure bill.

Last week, the OCC released a proposal for the implementation of the GENIUS Act, including a statutory injunction prohibiting issuers from directly paying stablecoin yields and establishing a "rebuttable presumption": if an issuer coordinates with an affiliate to have the latter pay yields to holders, such third-party yield arrangements may be illegal. TD Cowen believes that unless platforms are explicitly prohibited from paying yields, the OCC's approach is unlikely to satisfy banks. The OCC may change its stance after receiving public comments, or issuers and platforms may adjust their contractual structures to circumvent regulations, or platforms could even successfully challenge the rule in court. With the repeal of the Scheffren principle, the OCC's interpretation of the GENIUS Act no longer enjoys judicial respect, and Congress has not explicitly prohibited platforms from paying interest or issuers from paying marketing fees to platforms.

A statistical analysis of the real-world usage of stablecoins: Over 170 million stablecoins globally, with over 90% flowing to DEXs and CEXs.

PANews Overview: The global stablecoin supply has now exceeded $304 billion. While USDT and USDC hold nearly 90% of the market share, challengers such as USDS and PYUSD are rapidly emerging. Data shows that the number of global stablecoin holding addresses has exceeded 170 million, with centralized exchanges (CEXs) being the largest holding entities. Ownership concentration in emerging stablecoins is generally extremely high.

In terms of usage, stablecoins have transcended their simple savings function, with over 90% of on-chain transfers flowing to active scenarios such as DEX liquidity, lending, and CEX trading. Notably, USDC's circulation speed on Layer 2 networks like Base and Solana far exceeds that of USDT, demonstrating extremely high activity as a medium of exchange.

In addition, non-US dollar stablecoins (such as the euro and the real) are also quietly being deployed globally, indicating that on-chain financial infrastructure is expanding into global localized currencies.

Delin Holdings successfully navigated the hurdle: A detailed explanation of Hong Kong's first replicable RWA business paradigm.

PANews Overview: Delin Holdings' RWA tokenization business received "no further comment" from the Hong Kong Securities and Futures Commission, marking the formal establishment of Hong Kong's first replicable RWA business paradigm.

The core of this model lies in incorporating assets into the existing regulatory system and legal framework, using limited partnership funds (LPFs) as a legal interface to achieve asset securitization, while blockchain only undertakes the ledger registration function of fund shares, rather than directly putting physical assets on the chain.

Currently, this business is only available to professional investors and does not involve virtual asset exchanges; all issuance and redemption are completed within licensed financial institutions.

This development proves that the essence of RWA is "ledger rewriting," that is, making blockchain part of the licensed financial system. This "on-chain fund share" approach lays the groundwork for the future standardization, secondary market trading, and retail adoption of RWA, marking a significant industry milestone.

Japanese Yen Stablecoins: Can Japan Leverage $40 Trillion in Global On-Chain Arbitrage Transactions?

PANews Overview: The Japanese government is making a yen stablecoin the core of its Web3 strategy, aiming to replicate yen carry trades in the traditional foreign exchange market on-chain in order to regain global financial dominance.

Financial giants, represented by SBI Group, are accelerating their deployments, developing the Strium blockchain and launching compliant stablecoins such as JPYSC to provide infrastructure for institutional-grade RWA settlement, dividend payments, and 24/7 on-chain arbitrage.

The strategic significance of Japanese yen stablecoins lies in leveraging their advantage as a funding currency with ultra-low interest rates to attract global institutions to conduct efficient carry trades through DeFi protocols.

Despite challenges such as insufficient liquidity, incomplete regulatory details, and high crypto taxes that discourage retail participation, Japan is still attempting to use this initiative to establish non-dollar cornerstone assets in the dollar-dominated on-chain world and reshape the landscape of the global credit and arbitrage markets.