Hong Kong legislators pass stablecoin Bill

Hong Kong legislators pass stablecoin Bill

Hong Kong government, represented by the Hong Kong Monetary Authority has passed the Stablecoins Bill. The bill passed by the Legislative Council today (21 May) will establish a licensing regime for fiat-referenced stablecoins (FRS) issuers in Hong Kong, to further enhance Hong Kong’s regulatory framework on virtual-asset (VA) activities, thereby fostering financial stability and encouraging financial innovation.

Upon implementation of the Stablecoins Ordinance, any person who, in the course of business, issues an FRS in Hong Kong, or issues an FRS that purports to maintain a stable value with reference to Hong Kong dollars in or outside Hong Kong will need to obtain a licence from the Monetary Authority (MA).

The relevant persons must satisfy the requirements in areas such as reserve asset management and redemption, including proper segregation of client assets, maintaining a robust stabilization mechanism, and processing stablecoin holders’ requests for redemption at par value with reasonable conditions.

The relevant persons must also comply with a range of requirements, including those on anti-money laundering and counter-terrorist financing, risk management, disclosure and auditing, and fitness and propriety. The MA will conduct further consultations on the detailed regulatory requirements of the regime in due course.

FRS issued by a licensed issuer may be offered to a retail investor.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, “The Ordinance adheres to the ‘same activity, same risks, same regulation’ principle, with a focus on a risk-based approach to promote a robust regulatory environment. This is not only in line with international regulatory requirements, but also lays a solid foundation for Hong Kong’s virtual asset market, which, in turn, promotes the sustainable development of the industry, protects users’ rights and interests, and strengthens Hong Kong’s status as an international financial centre.”

The Chief Executive of the Hong Kong Monetary Authority, Mr Eddie Yue, added, “The Ordinance has established a risk-based, pragmatic, and flexible regulatory regime. We believe that a robust and fit-for-purpose regulatory environment would provide favourable conditions to support the healthy, responsible, and sustainable development of Hong Kong’s stablecoin and the broader digital asset ecosystem.”

The UAE Central Bank had passed its stablecoin Bill last year, while the USA is currently studying the Genius Act. the U.S.senate approved a procedural vote for the GENIUS Act for stablecoins, with 66 voting in favor, 32 against and two abstentions. Sixteen Democrats supported the vote, led by Senators Gillibrand, Alsobrooks, Gallego and Warner. The same vote failed on 8 May.

xWeave stablecoin platform raises $3 million as it expands to UAE

xWeave stablecoin platform raises $3 million as it expands to UAE

XWeave, a stablecoin infrastructure startup for cross-border payments will be expanding its operations to the UAE after raising $3 million in seed funding. The round was led by Jungle Ventures through its First Cheque@Jungle initiative, alongside crypto investment firm Lightshift. Follow-on investment came from Menyala, a venture studio founded by Temasek that also incubated the company. Additional investors include White Star Capital, Fabric Ventures, Digital Currency Group (DCG), The Venture Dept., and several angel investors.

As per the announcement, the funding will be used to expand XWeave’s network across non-G10 payment corridors in Asia and the Middle East, including the UAE, Indonesia, Japan, and Hong Kong. The company is also in talks with regional fintechs and global merchant platforms to integrate real-time cross-border settlement into their products.

Founded in 2024 by Milind Sanghavi, a payments veteran with prior roles at Meta, PayPal, Visa, Ezetap, and OCBC, XWeave aims to modernize global money movement by connecting fiat payment rails with blockchain-based stablecoin networks. Since launching operations in December 2024, XWeave has enabled real-time payments between Singapore and the Philippines.


“The US$30T cross-border payments market is overdue for transformation. As stablecoins evolve into mainstream financial infrastructure, XWeave is the connective tissue that enables businesses to move money across borders with the ease of a text and the compliance rigor of regulated flows. While there have been other attempts using specific digital assets, we’re about to see a significant rise in both stablecoins and CBDCs. XWeave’s non-custodial, asset-agnostic orchestration platform is the best way for businesses to access this growing liquidity— leveraging the benefits of blockchain without relying on regulatory arbitrage. Our job is to make it usable and adaptable for the full spectrum of money flows.” said Milind Sanghavi, Founder and CEO of XWeave.

This week, Eric Trump, the son of President Donald Trump, during his participation at Token 2049 demystified the stablecoin behind the deal that was made between UAE sovereign wealth fund MGX and Binance crypto exchange. The $2 billion investment by MGX into Binance was announced earlier this year, yet the stablecoin mentioned for carrying out the deal remained a mystery.

Eric Trump reveals the stablecoin behind UAE’s $2 billion Binance investment

Eric Trump reveals the stablecoin behind UAE’s $2 billion Binance investment

Eric Trump, the son of President Donald Trump, during his participation at Token 2049 demystified the stablecoin behind the deal that was made between UAE sovereign wealth fund MGX and Binance crypto exchange. The $2 billion investment by MGX into Binance was announced earlier this year, yet the stablecoin mentioned for carrying out the deal remained a mystery.

MGX, chaired by Sheikh Tahnoon Bin Zayed Al Nahyan, the UAE’s national security advisor and a brother of UAE President Sheikh Mohammed bin Zayed, backed not only by Abu Dhabi sovereign wealth fund Mubadala but also G42 invested 2 percent of its 100 billion investment vehicle into the world leading crypto exchange Binance.

At Token 2049 Dubai, Eric Trump demystified it stating the the World Liberty Financial USD stablecoin (USD1) is the one that will be used for the UAE MGX Binance deal, while noting that the USD1 would integrate with the Tron network.

Trump announced that the WLF USD stablecoin (USD1) was selected as the official stablecoin for MGX’s $2 billion investment in Binance. Zach Witkoff, the Co-founder of World Liberty Financial, teased more future partnerships for the DeFi protocol, adding that the platform aimed to establish USD1 as the preferred stablecoin in the DeFi and CeFi ecosystem, and the WLF team was working really hard on getting integrations into traditional retail point of sale systems.

“We thank MGX and Binance for their trust in us,” said Witkoff, who is the son of the White House envoy to the Middle East, Steve Witkoff. “It’s only the beginning.”

Trump disclosed that Abu Dhabi’s MGX will use the USD1 stablecoin to settle a $2 billion investment into Binance in one of crypto’s largest funding deals, marking the investment firm’s first venture into the crypto space.

Trump mentioned that sending funds internationally through SWIFT was slow, costly, and complex, emphasizing that crypto [almost] made banks redundant. An analysis report published by Statrys said the average transaction time on the SWIFT payment network was 20 hours and seven minutes. Additionally, 75% of SWIFT transactions involve one or two intermediary banks, meaning that these average 1 day and 11 hours to settle. However, a USDT or USDC stablecoin transaction on Ethereum settles within two to five minutes.

“USD1 will become one of the most transparent and regulated stablecoins in the world…not only do we want to create a product in our stable point USD, one that can be sent across borders in a very seamless way, but transparency and frankly, consumer safety is paramount…”

UAE DP World to issue stablecoin for cross border payments

UAE DP World to issue stablecoin for cross border payments

DP World, a global player in the logistics and trade ecosystem, is partnering with financial and technology providers to address inefficiencies in cross-border payments with a stablecoin issuance. The announcement was made at World Economic Forum in Davos.

As customers in emerging markets such as Asia and Africa grapple with prolonged settlement times, restricted access to finance, and a lack of transparency DP World will collaborate with firms in Singapore, India and UAE as well as other key markets.

As per the press release, DP World aims to introduce accessible, instant, and transparent cross-border payment solutions powered by stablecoins. The initiative is designed to simplify and accelerate international transactions, empowering businesses in emerging economies to thrive in an increasingly interconnected world.

DP World Group Chairman & CEO, Sultan Ahmed bin Sulayem, said, “By introducing stablecoin-based payment options, we are not just addressing a critical gap in the trade ecosystem but also reaffirming our commitment to innovation and leadership in global commerce. This initiative aligns with DP World’s broader mission to enhance trade flows and economic development in regions that need it most. We believe this initiative will redefine the way businesses engage in cross-border trade, particularly in regions where financial barriers have limited potential. DP World is committed to creating a more inclusive and efficient trade ecosystem.”

DP world believes that stablecoins will drastically reduced settlement cost and times for cross-border payments, giving the example of a textile manufacturer in Ethiopia which exports raw cotton to a fabric producer in India but faces significant delays in receiving payments.

This is due to the traditional correspondent banking systems requiring multiple intermediaries, resulting in settlement times that can extend to several days or even weeks. Stablecoins will also improve financial accessibility for businesses of all sizes such as the Ethiopian supplier struggling with cash flow, limiting its ability to scale operations or meet additional orders.

Finally stablecoins will enhance transparency and trust in international trade transactions and the lack of real-time tracking of the transaction status leaves both parties uncertain about when the payment will be completed.

The announcement comes months after the UAE Central Bank came out with its stablecoin regulation, allowing AED Stablecoins to be used for payments for products and services within the UAE, and for other stablecoins to be used for the purchase of virtual assets. Both would need to be regulated thought within the UAE.

As a result the first regulated AED stablecoin was announced under the name AECoin. DP World’s stablecoin could become the second one to be regulated, while Tether awaits its approval.

UAE regulated stablecoin, AEcoin sponsors Qatar UAE SuperCup

UAE regulated stablecoin, AEcoin sponsors Qatar UAE SuperCup

UAE’s first regulated stablecoin by the Central Bank of UAE, AEcoin has announced the sponsorship of the Qatar UAE SuperCup. The Qatar-UAE Super Cup football Cup, will have distinct competitions that are set to ignite the passion of football fans from January 16 to 19. The event will bring together 8 elite teams to compete in intense matches across the Challenge Shield, Super Cup, Super Shield, and Challenge Cup categories.

On Thursday, January 16, the opening match kicked off in Doha, pitting Al Rayyan, runner-up in the Ooredoo Stars League, against Shabab Al Ahli, the ADNOC Professional League runner-up.
On Friday, January 17, in Dubai, Qatar SC, the Amir Cup runner-up, will go head-to-head with Al Nasr, the UAE President’s Cup runner-up.
Reigning Ooredoo Stars League champions Al Sadd will take on Al Wasl, winners of the ADNOC Professional League on January 18 in Doha.
The grand finale is set to take place in Abu Dhabi on the 19th, with Al Wakrah, the Qatar Cup champions battling it out with Al Wahda, the Abu Dhabi Islamic Bank Cup champions.

AECoin joins the ranks of Visit Qatar and RedBull as one of the many sponsors. The AE Coin promises an instant, secure, stable, innovative, low-cost, and efficient payment experience that will reshape the future of the digital economy.

Mbank was the first bank to be offering the AE Coin licensed stablecoin available on its AEC Wallet. Through AEC Wallet, powered by Mbank, customers will be able to purchase AE Coin and make secure, stable virtual financial transactions. In line with the Central Bank of the UAE’s digital payment token services framework and the government’s future-oriented vision.

USDC stablecoin issuer has set up office in Abu Dhabi ADGM

USDC stablecoin issuer has set up office in Abu Dhabi ADGM

Circle Internet Group, Inc., a global digital financial technology firm, and the issuer of the USDC stablecoin has incorporates its entity in the ADGM, as part of its strategic expansion into the Middle East and Africa.

As per the announcement, Circle has also entered into a partnership with LuLu Financial Holdings (‘LuLuFin’), and its affiliates, one of the largest financial services conglomerates in the region, to facilitate remittances and cross-border payments with USDC, Circle’s fully-reserved digital dollar.

Circle’s mission centers on enhancing financial inclusion and accessibility by deploying a stablecoin infrastructure that addresses gaps in financial services while complementing existing payment systems, particularly in high-traffic remittance corridors such as those traversing the Middle East. The partnership with LuluFin exemplifies this vision, deploying USDC as a robust platform to enable near-instant payments that enhance operational efficiency and reduce transaction costs.

LuLuFin operates across the Gulf Cooperation Council (GCC), Indian sub-continent and APAC region, managing over $10 billion in annual transactions. Through this partnership, LuluFin will optimize remittances and cross-border payment flows using USDC, initially targeting corridors between the Middle East and Asia, as well as Europe. By leveraging USDC, LuLuFin will benefit from increased liquidity and reduced volatility, while harnessing the speed, immutability, and traceability of blockchain technology.

“This partnership with LuLuFin marks a significant step forward in the evolution of cross-border payments within one of the world’s most dynamic remittance corridors,” said Jeremy Allaire, Co-founder and CEO of Circle, from the sidelines of Abu Dhabi Finance Week. “By incorporating in the ADGM and collaborating with industry leaders like LuLuFin, we strengthen our commitment to advancing the digital asset economy in the region. Together, we are driving innovative solutions and enhancing access to efficient digital financial offerings.”

“Our partnership with Circle reflects our unwavering commitment to innovation. At LuLu Financial Holdings, we have harnessed the transformative power of blockchain technology, enabling better, faster, and more seamless cross-border payment experiences for our customers. This collaboration with Circle marks another significant step forward in that journey, reinforcing our resolve to redefine remittance experiences with cutting-edge solutions,” said Adeeb Ahamed, Managing Director of LuLu Financial Holdings.

“We are proud to welcome Circle, the preeminent global stablecoin issuer, to one of the largest financial districts in the world — ADGM,” added Arvind Ramamurthy, Chief of Market Development at ADGM. “Circle’s products represent a powerful platform for intelligent financial services, and, alongside ADGM’s robust ecosystem, are positioned to unlock a myriad of opportunities for technological innovation and next-generation financial applications in the region. Their contribution will further strengthen ADGM’s position as a global financial powerhouse.”

“The Middle East is a crucial frontier for Circle’s mission of raising global economic prosperity through the frictionless exchange of value,” said Miriam Kiwan, VP, MEA at Circle. “By collaborating with impactful partners like LuluFin, we aim to transform how cross-border payments are conducted, ultimately delivering substantial benefits to individuals and businesses throughout the region.”

This comes just after the announcement that AE Coin has been issued the first stablecoin license in the UAE by the Central Bank of the UAE.

Tether also intends to issue its AED stablecoin in the UAE at the onset of 2025.

Tether facilitates $45 million crude Middle East oil transaction

Tether facilitates $45 million crude Middle East oil transaction

Tether, issuer of stablecoin USDT, through its Investment division has financed a physical crude oil transaction, in the Middle East, between a publicly traded super-major oil company and a top-tier commodity trader worth $45 million. The transaction which was completed in in October 2024, facilitated the loading and transporting of 670,000 barrels of Middle Eastern crude oil. This was Tether Investments’ first crude oil transaction in the region.

Launched earlier this year, Tether’s Trade Finance business has quickly scaled to support the $10 trillion trade finance industry by providing accessible capital solutions that streamline and modernize global trade flows. This new venture, part of Tether Investments, is separated from Tether’s Stablecoin reserves and leverages the company’s high profitability as demonstrated in its recently published quarterly attestation for Q3/2024. Tether aims to help drive positive change within the trade finance industry by providing flexible capital solutions to a wide range of companies and driving efficiency in trade flows through its stablecoin, USD₮.

“Tether Investments’ financing of this significant crude oil transaction underscores our commitment to reshaping the trade finance landscape,” said Paolo Ardoino, CEO of Tether. “With USD₮, we’re bringing efficiency and speed to markets that have historically relied on slower, more costly payment structures. This transaction marks the beginning, as we look to support a broader range of commodities and industries, fostering greater inclusivity and innovation in global finance.”

Tether is driving the use of USD₮ in trade finance transactions, which lowers costs and reduces payment times – a distinct benefit over traditional lending – while leveraging top-tier compliance and AML standards, boosted by the transparency of blockchain networks.

Tether has been steadily growing its presence in the Middle East announcing that it will be launching the AED stablecoin in UAE. 2024 is proving to be a landmark year for stablecoins in the UAE. Through the first half of the year, the value of stablecoins received by services, particularly on centralised and decentralised exchanges (CEX and DEX) in the country totalled over $9.8billion, a 55 per cent spike over the $6.3billion received over H1 2023.

Consequently, stablecoins now account for the largest share of crypto activity in the UAE (51 per cent), which stands significantly higher than both Bitcoin (19 per cent) and Ether (9 per cent), which are typically considered to be the most recognized and popular cryptocurrencies.

African Stablecoin on and off ramp solution provider, Yellow Card raises $33 million

African Stablecoin on and off ramp solution provider, Yellow Card raises $33 million

Yellow Card (https://YellowCard.io), the first licensed Stablecoin on/off ramp on the African continent, has closed its Series C financing. The US $33 million equity financing was led by Blockchain Capital, with participation from Polychain Capital, Third Prime Ventures, Castle Island Ventures, Block, Inc., Galaxy Ventures, Blockchain Coinvestors, Hutt Capital, and Winklevoss Capital.

“This fundraise not only demonstrates our resilience, but also highlights the vital role of digital assets for businesses across Africa,” said Chris Maurice, CEO and co-founder of Yellow Card. “We are excited about the opportunities, partnerships, and journey ahead; and I’m proud to work with an incredible cohort of investors that share our vision for the industry and the continent.”

Since its launch in Nigeria in 2019, Yellow Card has established itself as a pioneering force in the industry, with operations spanning 20 African countries and over US$3 billion in transactions facilitated across the continent.

This newly secured capital will be applied to fund growth and expansion, particularly through enhancing Yellow Card’s API and widget products — the gateways for international businesses including Coinbase and Block to tap into African markets and for Pan-African companies to easily make international payments and manage their treasury via stablecoins.

Additionally, Yellow Card is developing innovative new products for the continent, strengthening its team and systems, and continuing to lead engagement with regulators across the continent.

This financing reflects the level of confidence expressed in the business by both new and existing investors.

“The future of payments lies in fast, affordable rails for everyone, powered by open networks,” said Aleks Larsen, General Partner at Blockchain Capital, the lead investor in Yellow Card’s Series C financing. “We couldn’t be more excited to back Yellow Card as they bring Africa on-chain with stablecoins.”

Yellow Card remains steadfast in its commitment to empowering the continent by making it easy for businesses of all sizes to make international payments, manage their treasury, and access hard currency liquidity via stablecoins.

AED Stablecoin beats Tether to it and receives UAE Central Bank in principle approval

AED Stablecoin beats Tether to it and receives UAE Central Bank in principle approval

AED Stablecoin LLC announced that the Central Bank of UAE has provided it with in principle approval to launch and establish its own stablecoin, AE Coin. This comes after the Central Bank of UAE announced the “Payment Token Services Regulation”; Circular No. 2/2024, dated 7 June 2024, to be licensed by the Central Bank of the UAE.

As per the press release, the license will enable AED Stablecoin to be the first-ever entity in the UAE to issue AED Stable Coins, in line with the government’s forward-thinking vision and the UAE’s Digital Government Strategy 2025, AE Coin promises to revolutionize financial services by offering unparalleled stability, security, and efficiency.

AE Coin will utilizes fiat-backed stability and Blockchain technology. Each coin will be backed by the AED Dirham.

The press release adds, that AE Coin enables fast, low-cost transactions, all while operating under the regulatory oversight of the Central Bank of the UAE. It’s the future of a seamless, secure, and innovative digital economy.

Ramez Rafeek, General Manager of AED Stablecoin, stated: “We are very pleased to have received the approval of the Central Bank of the UAE to start issuing AE Coin, in accordance with the “Payment Token Services Regulation” Circular. As the first-ever stablecoin regulated by the Central Bank of the UAE, AE Coin will be revolutionizing the digital currency landscape, providing users with an unparalleled blend of financial freedom, unwavering stability, and top-tier security.”

It offers DeFi Integration by integrating with decentralized finance platforms (DeFi). In addition, it provides Enhanced Security and Transparency. AE Coin’s state-of-the-art blockchain technology ensures multi-layer encryption, meaning every transaction is securely recorded on the blockchain, ensuring trust and security.

Lastly it is adhering to Global Regulatory Compliance, with complete regulatory oversight from the Central Bank of the UAE, AE Coin assures users that it adheres to the highest standards of security and compliance in digital finance.

Companies in the UAE can use AE Coin’s stable and regulated currency for instant payments to other companies in the UAE holding AE Coin wallets, improving cash flow management and reducing transaction costs.

For individuals looking to invest, save, or use digital currency for everyday transactions, AE Coin’s intuitive and secure platform makes it easy for anyone to get started. Individuals using AE Coin will enjoy instant, hassle-free transactions without any delays and fees compared to traditional banking.

As a digital currency, AE Coin is designed to support the UAE’s growing digital economy, enabling easier, more secure payments that contribute to the country’s financial innovation. Lastly, AE Coin is designed to foster economic growth, providing individuals and businesses with new opportunities to thrive in the digital economy.

AE Coin’s strategy focuses on forming strategic partnerships with major financial institutions, payment gateways, and technology providers to ensure widespread adoption. AE Coin’s ambitious roadmap includes integration with decentralized applications (dApps), listings on major exchanges, and ongoing technological advancements.

Tether had also previously announced it was seeking a license to launch its own AED stablecoin.

Tether holdings of U.S. treasury bills surpasses that of UAE

Tether holdings of U.S. treasury bills surpasses that of UAE

Tether stablecoin on its 10th anniversary announced that it was one of the top 20 largest buyers of U.S. Treasury bills, surpassing the holdings of UAE. The company also announced that it had surpassed 350 million users just a decade after its 2014 launch.

According to recent data released by the company, Tether’s user base expanded by 24% over the past year alone, jumping from approximately 282 million users in October 2023 to its current level. This growth is even more striking when compared to October 2022, when the platform had roughly 141 million users, less than half of today’s figure.

With a current market capitalization of $119.8 billion, Tether’s USDT token significantly outpaces all other stablecoins in circulation.

The company reports substantial holdings in U.S. Treasuries, positioning itself as a significant player in government securities markets. “As of its Q2 2024 Attestation, Tether had direct and indirect exposure to over $97 billion in U.S. Treasuries,” the company stated. “This makes Tether one of the top 20 largest buyers of U.S. Treasury bills, surpassing the holdings of countries like Germany, the United Arab Emirates, and Australia.”

Tether argues that its significant Treasury holdings strengthen the dollar’s international influence, with USDt serving as a trusted digital representation of the world’s reserve currency.

Tether recently announced it would be launching a UAE Dirham backed stablecoin.