The real news about digital asset innovation is often drowned out by ‘crypto’ noise such as the collapse of FTX and the launch of Trump Coins, but what should we really be listening to?
2025 is the year that Stripe went all in, heralding reports of a stablecoin gold rush in financial services as the UK’s Insolvency Service announces they have hired its first
dedicated crypto intelligence specialist to help trace digital assets in bankruptcy cases. Last month,
MapleStory (an online RPG with 180 million registered users worldwide and over $3 billion in revenue) launched MapleStory Universe, a blockchain version of the game with in-game currency.
Is blockchain-as-infrastructure, or stablecoins-as-a-platform (pick your preferred summary) finally happening?
The blockchain-banking boom
Efi Pylarinou has written about how the banks are “fighting back” in the face of a $225 billion stablecoin boom and sets out the two main strategies; the first being joining the stablecoin gold rush. There is evidence of this approach in the exploration
of a joint stablecoin consortium by JPMorgan, Bank of America, Citigroup and Wells Fargo, the biggest Wall Street crypto collaboration ever. Sony Bank is also conducting a stablecoin proof-of-concept on Polygon for gaming/entertainment payments and the Bank
of America CEO publicly stating readiness to issue dollar-backed stablecoin.
The second strategy Efi identifies is the building of competing tokenised deposits. Examples of this approach can be seen in the launch of Asia’s first tokenised deposit service by HSBC Hong Kong with Ant International (24/7 HKD/USD transfers). Also, in
JPMorgan's Kinexys processing over $300 billion in tokenised deposits with EUR/USD/GBP support, and Mastercard integrating its blockchain network with Kinexys for cross-border payments.
There is excitement in the US about the potential for a regulatory ‘unlock’ if the GENIUS Act passes. As currently drafted, if you are a ‘permitted stablecoin issuer’ you will be able to treat stablecoins as cash equivalents on your balance sheet. This would
be radically simpler than the prudential rules and custody requirements of other financial products.
UK digital asset legislation
In the UK, I have been involved in the development of legislation that will accommodate a new form of property class (neither a thing in possession nor a thing in action) in common law, perhaps better reflecting the particular qualities of digital assets.
Further regulatory developments are under consideration in two new consultations published by the
Financial Conduct Authority (FCA) last month (May 28 2025). The papers aim to clarify the rules for businesses in the crypto space and enhance consumer protection.
The first, “Prudential Requirements for Cryptoasset Firms”, focuses on introducing rules for firms – including those issuing stablecoins and safeguarding cryptoassets – that will ensure they can operate safely and withstand periods of stress.
Key proposals include capital requirements made up of the higher of a permanent minimum capital threshold (£350k for issuers, £150k for custodians), a fixed overheads requirement based on annual expenditure and an activity-based ‘K-factor’ requirement, that
scale with the firm’s crypto exposure. Firms must also liquidity buffer with stress testing frameworks to simulate outflows and adverse events.
The second, “Stablecoin Issuance and Cryptoasset Custody”, looks at the rules for stablecoin issuers and firms that safeguard cryptoassets. It sets out requirements to ensure that stablecoins are properly backed by secure assets, with clear provisions for redemption.
It intentionally excludes unbacked or algorithmic tokens and focuses on improving consumer confidence by ensuring that firms are authorised, and introducing trust structures for backing assets, transparency and custodian obligations for firms and redemption
rights for holders. The aim is to support innovation while providing strong consumer protection. Responses to the current proposals should be directed to the FCA – the consultation is open until 31 July.
Inversion Chain: A case study in blockchain-as-infrastructure
At a recent event I was interested in a presentation given by Santiago Santos who has recently launched a company, Inversion Chain. He was bullish about the prospect of one billion users on chain. His business model depends on acquiring traditional businesses,
in this case telcos, and integrating them with blockchain technology. Inversion targets these assets (and the ready-made audiences attached) and then rewires the business. Network costs fall as traffic is off-loaded to community hotspots, payment costs drop
when billing moves from card rails to stablecoin rails, back-office overhead shrinks as on-chain settlement automates reconciliation and compliance.
When that’s all done, Inversion “flips a switch” in the existing top-up app. Every subscriber sees a new, dollar-denominated balance right next to their data meter. They can store savings, receive remittances, and pay merchants, all without new log-ins,
tutorials, or crypto jargon.
As the account rides on stablecoins in the background, users enjoy dollar stability while the company enjoys instant, low-cost settlement.
By taking this approach, Inversion aims to transform everyday phone plans into the fastest bridge yet between the mainstream world and the blockchain economy. It’s a fascinating case study for the blockchain-as-infrastructure story. Listening closely to
how regulation in the US and the UK will shape progress in this space is of more than of interest.