Stablecoin

Tether CEO Paolo Ardoino said he is not taking a side on whether stablecoin issuers should pass yield to users, following a Brogan Law Substack report published Thursday that linked Tether to bank-backed limits. He added that Tether does not share yield, as the dispute over rewards has slowed work on a broad crypto market structure bill.

Talos closed a $45 million Series B extension, adding investors including Robinhood Markets and lifting total Series B funding to $150 million. The company said the round values it at approximately $1.5 billion post-money and will support product expansion, with part of the investment settled using stablecoins.

On January 29, 2026, the UK House of Lords Financial Services Regulation Committee opened an inquiry into stablecoin oversight. The review will examine global issuance since 2014, compare the UK with the US and EU, and analyze how GBP-denominated stablecoins could affect monetary policy and traditional institutions. Outcomes could inform future regulatory frameworks and the UK’s competitiveness in the digital economy.

Russian lawmakers plan to approve a wide-ranging crypto regulation package by the end of June, with the rules scheduled to take effect on July 1, 2027. The framework would permit regulated trading of Bitcoin, Ethereum, selected altcoins and stablecoins, while capping annual retail purchases at about 300,000 rubles and imposing testing requirements and licensing rules for intermediaries.

On January 28, 2026, Donald Trump Jr. said USD1 reached a $5 billion market cap. CoinMarketCap data shows the Trump-linked stablecoin now ranks fifth, surpassing PYUSD at $3.75 billion, with 583K holders versus 101K for PYUSD. In late December, Binance added TRX/USD1 and USD1/U margin pairs and offers 20% APR to spur adoption.

Japan's Financial Services Agency launched a public consultation on January 27, 2026 to define which bonds can qualify as reserve assets for yen-denominated stablecoins, with submissions accepted until February 27, 2026. The draft framework includes strict credit rating and size thresholds for foreign bonds and is tied to the amended 2025 Payment Services Act governing stablecoin issuance and reserves. Market observers suggest tighter eligibility rules could increase demand for Japanese government bonds from stablecoin issuers over time.

In a Jan. 23 research note, 21Shares' Matt Mena projected three XRP outcomes for 2026 after the August 2025 settlement cleared the SEC overhang. The firm cites US spot ETF assets above $1.3 billion and a 55‑day inflow streak, exchange reserves at 1.7 billion XRP, and RLUSD's expansion as key inputs behind targets of $2.45 (50%), $2.69 (30%), and $1.60 (implied -16%).

Institutions increasingly treat Bitcoin volatility as manageable, with liquidity now the core execution risk. Market depth at 1% and refill dynamics, alongside intraday cycles, drive costs, while ETFs and stablecoins shape flows. With 30% drops near round numbers, timing and structure matter more than price swings.

Fidelity Investments is preparing to roll out its Fidelity Digital Dollar (FIDD) stablecoin, pegged 1:1 to the US dollar and backed by reserves. The token will operate on Ethereum, target both institutional and retail clients, and enter a market where Tether and Circle collectively hold most of the share.

Abu Dhabi-based Universal Digital has introduced USDU, a US dollar-backed stablecoin registered by the Central Bank of the United Arab Emirates as a Foreign Payment Token under the Payment Token Services Regulation. The token is issued on Ethereum, fully backed by US dollar reserves held in UAE banks, and is intended for institutional and professional use within the country's regulated digital asset settlement framework.