Welcome to the first edition of Stablecoin Signals by Dynamic. After speaking with 100+ fintech and web2 teams, the feedback has been consistent: people want to adopt stablecoins but don’t know where to begin. Alongside the launch of our Stablecoin Hub and upcoming PDF report, we’re launching Stablecoin Signals to share insights and help builders navigate the stablecoin space.
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📝 In Today’s Edition
Stablecoin Story: Interview with Halliday’s Legal Counsel, Andrew Jacobson
News Highlights: Mastercard joins the Global Dollar Network, Citigroup considers launching its own stablecoin, and more
Commentary Corner: What is the GENIUS Act, and why is it such a big deal?
Chart We’re Watching: Stablecoin Supply by Chain
Project Spotlight: Lightspark
🎤 A Deep Dive Into Stablecoin Regulation With Halliday
Last week, we sat down with Andrew Jacobson, General Counsel at Halliday, to talk about the evolving legal landscape for stablecoins and what it means for builders entering the space.
Andrew has spent the past decade advising both startups and regulators. In this conversation, he shares insights on building with integrity, why non-custodial architecture is essential, and how legal clarity could unlock the next generation of stablecoin use cases.
Beyond the legal and technical details, the conversation pointed to a broader shift unfolding across the industry. Andrew also left us with a clear message for builders watching the regulatory tide begin to turn:
“Now is the time to build. What lies ahead is a once-in-a-generation opportunity to reset, rebuild, and push the boundaries of what this technology can do.”
📰 Top Stablecoin Stories We’re Following
Paxos’ Global Dollar Network facilitates off-chain settlement of stablecoins like USDP, enabling interoperability across platforms and partners. With Mastercard plugged in, this effectively means that billions of existing cards, merchants, and users are now just one infrastructure hop away from stablecoin-based payments.
Our thoughts: Mastercard’s move is a major validation that stablecoin infrastructure is being adopted. Rather than launching its own stablecoin, Mastercard is embedding itself into backend rails that abstract away the complexity of stablecoins. Mastercard brings the weight and trust of traditional finance into a space that’s been largely driven by crypto-native players. Its involvement helps push stablecoin-based payment flows into the mainstream by showing that they can operate quietly in the background without user friction, which is a core belief we share at Dynamic.
Circle’s application for a U.S. trust bank charter is a major signal that stablecoins are entering a new phase of institutional legitimacy and infrastructure control. By seeking direct custody of USDC reserves, Circle is moving to reduce reliance on third parties like BNY Mellon and build vertically integrated, regulator-approved stablecoin operations.
Our thoughts: This is a clear play for regulatory legitimacy. By applying for a trust bank charter, Circle is positioning itself as a long-term financial institution, not just a tech company issuing a stablecoin. It wants to be seen on par with traditional custodians and asset managers, capable of safeguarding billions in tokenized value under direct federal oversight. This could reshape how policymakers, banks, and institutional partners view the role of stablecoin issuers in the financial system.
J.P. Morgan’s pilot of JPMD, a USD-denominated deposit token on Base, marks a pivotal moment in the convergence of traditional finance and public blockchain infrastructure. Unlike stablecoins, which are issued by fintech or crypto-native companies, deposit tokens like JPMD represent direct claims on commercial bank deposits and sit fully within the banking system.
Our thoughts: This signals a major shift in how institutions will move liquidity in the future. It reframes onchain money not as a disruption to banking but as an upgrade to its infrastructure. Deposit tokens could emerge as a trusted and regulatory-aligned alternative to stablecoins for those who don’t want to step outside the bounds of traditional finance. JPMD is not just an experiment. It is a blueprint for one way that regulated entities might enter the world of crypto.
Bank of America has confirmed it is actively exploring stablecoin issuance, with CEO Brian Moynihan stating that the bank is focused on using stablecoins as a transactional tool. While no product has been launched yet, BoA is conducting internal research, tracking regulatory developments, and has even discussed a potential joint stablecoin initiative with other major banks such as JPMorgan and Citigroup.
Our thoughts: Bank of America's interest in stablecoins reflects a growing institutional consensus that the settlement layer of the internet will be built on blockchains. This is not about hype or headlines. It is about a global bank evaluating how to move trillions in client assets faster, cheaper, and with greater flexibility. A BoA-issued stablecoin would challenge the dominance of crypto-native players and reinforce the idea that stablecoins are a core part of modern financial infrastructure. It also shows that regulatory momentum is unlocking new strategic conversations at the highest levels of finance.
Stablecoin Insider released their Q2 2025 stablecoin industry report
The report offers a comprehensive look at a market that has rapidly matured, highlighting institutional adoption, regulatory progress, and new product categories like yield-bearing stablecoins. USDT and USDC still dominate, but emerging players like GHO and PYUSD are gaining traction. The data also shows that traditional finance is no longer testing stablecoins passively, but actively embedding them into existing systems.
Our thoughts: Stablecoins are now operating at internet scale. With trillions in volume and developing regulatory frameworks, they are no longer experimental. They are foundational. The real story here is not just growth in numbers, but maturity in infrastructure, transparency, and regulation. This report marks a clear inflection point: stablecoins have shifted from speculative assets to essential infrastructure, and any institution serious about modern payments should be paying close attention.
🤔 Commentary Corner
Q: What is the GENIUS Act, and why is it such a big deal?
The GENIUS Act, passed in mid-July, creates the first official U.S. regulatory framework for privately issued stablecoins. It allows banks, fintechs, and even retail brands to issue their own digital dollars, provided they meet baseline compliance requirements like anti-money laundering checks. In effect, it brings legitimacy to a sector that’s operated in a legal gray zone for years.
Here’s why it matters:
Mainstream adoption just got a green light: Major financial institutions are actively exploring how stablecoins can improve payment infrastructure, reduce costs, and offer faster settlement. This new legal clarity is prompting banks and fintechs to move from experimentation to implementation.
Big potential for onchain infrastructure: The law paves the way for stablecoins to streamline behind-the-scenes operations such as cross-border payments, merchant settlements, and programmable rewards.
Opportunities for ecosystem-wide coordination: As more companies enter the stablecoin space, the need for shared infrastructure and wallet interoperability will drive collaboration and standard-setting across the industry.
New use cases are emerging: Clearer rules around stablecoin issuance make it easier for companies to explore novel use cases such as loyalty programs and programmable incentives.
Developers can get to market faster: With clearer rules now in place, builders no longer need to navigate regulatory gray areas. This opens the door for faster product cycles and more confidence when launching stablecoin-powered apps and infrastructure.
📊 Chart To Watch: Stablecoin Market Capitalization By Chain
This chart offers a clear view of two important trends that we’ve been tracking closely:
The overall stablecoin market cap is at all-time highs: Recently crossing $260B, the total market capitalization of the stablecoin sector is accelerating quickly. This comes on of the back of many new stablecoin launches, advancements in regulation, and a global shift towards digital dollars.
Ethereum and Tron are dominating stablecoin activity: Together, these two chains account for the vast majority of stablecoin activity. Ethereum continues to lead in institutional and DeFi-focused usage, while Tron has become the chain of choice for cross-border transactions, especially in emerging markets.
🔎 Project Spotlight: Lightspark
The current financial system is slow, closed, and fragmented, but Lightspark is building the infrastructure to change that. By blending the speed of the internet with the power of Bitcoin, they’re creating a modern payments layer that is open, instant, and global.
What is it? Lightspark is a payments infrastructure company building a global, real-time financial network powered by Bitcoin and designed to move money as efficiently as the internet. From instant cross-border payouts to stablecoin issuance on Bitcoin, Lightspark’s APIs and protocols give developers the tools to integrate fast, affordable payments into modern products and services. They’ve also introduced Spark, a chain purpose-built to streamline native Bitcoin transactions and deliver fast settlement.
Why is it important? Legacy payments are expensive, slow, and dependent on intermediaries. Lightspark is breaking those barriers by offering instant settlement, open access, and global interoperability. Their infrastructure is already powering seamless Bitcoin payments on platforms like Coinbase and enabling real-time payouts across the US, Mexico, Asia, and Europe.
We hope you enjoyed the first edition of Stablecoin Signals! You’ll be hearing from us again soon with the second edition. Reply to this email if you have any thoughts or feedback.
Until next time,