FSB Sounds Alarm: Stablecoin Run Could Trigger Global Financial Meltdown!

Polygon Labs has finalized its acquisition of Coinme, injecting regulated U.S. payment capabilities directly into its Open Money Stack.

The deal gives Polygon a licensed gateway for fiat‑to‑crypto transactions across the United States, bolstering its push to make stablecoins a everyday medium of exchange and expanding its stablecoin‑powered financial services. Analysts see the move as a strategic step toward broader institutional adoption and a potential boost for USDC and other stablecoins on Polygon’s network.

The European Banking Authority (EBA) has labelled Circle’s USDC stablecoin a 'significant e-money token' under the Markets in Crypto Assets (MiCA) framework, triggering joint oversight by the EBA and France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR).

With a market capitalisation of US$73 billion, USDC ranks as the world’s second‑largest stablecoin, trailing only Tether’s USDT at US$184 billion. The move comes as EU‑based issuers push for regulated dollar‑pegged stablecoins, allowing regulators to set safeguards and rules for issuers without seeking to ban dollar stablecoins from the region.

Standard Chartered has raised its stablecoin market forecast to a staggering US$2 trillion by 2030, citing surging transaction volumes as the key driver.

The bank identified four distinct stablecoin markets, with USDC leading in payments and AI‑agent transactions, as competition for reserve yields intensifies among issuers.

Ethereum-led altseason speculation is gaining traction after USDT borrowing against $10 million in BTC collateral jumped 83%, signaling fresh capital may be rotating into altcoins.

This surge in stablecoin leverage reflects growing trader confidence in a potential Ethereum-driven rally, as DeFi users tap BTC holdings to fund altcoin exposure; if the trend sustains, it could trigger a broader altseason, boosting liquidity across smaller tokens and shifting market sentiment away from Bitcoin dominance.

Standard Chartered raised its stablecoin market cap forecast to $2 trillion by 2030, citing rising transaction volumes despite a stalled market cap around $309 billion.

The bank identified four stablecoin niches, with USDC leading payments and AI‑driven transactions, while competition over reserve yields heats up; analyst Geoffrey Kendrick notes existing coins are turning over faster as use cases diversify.