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How Traditional Banks Are Pushing Forward Innovative Stablecoin Models in 2025
Key Takeaways
- Traditional finance banks worldwide are diving into stablecoins, turning them from niche crypto tools into core parts of everyday banking and payments, boosted by new laws like the GENIUS Act in the US.
- Regulations such as Europe’s MiCA and Japan’s Payment Services Act are clearing the path for banks to issue fully backed stablecoins, reducing risks and boosting adoption in payments and settlements.
- Major players like Goldman Sachs, Deutsche Bank, and JPMorgan are experimenting with models like reserve-backed tokens and deposit tokens, aiming to blend blockchain efficiency with traditional stability.
- Asia’s fragmented approach highlights yen and Hong Kong dollar stablecoins from megabanks, while global dominance of US dollar-pegged stablecoins continues to grow amid concerns over monetary sovereignty.
- The shift is cleansing stablecoins’ image post-Terra collapse, positioning them as reliable infrastructure for cross-border transactions and institutional flows, with brands like WEEX aligning seamlessly to enhance user trust and trading efficiency.
Imagine stablecoins as the reliable bridge between the wild west of cryptocurrency and the steady world of traditional banking. They’re like digital cash that doesn’t swing wildly in value, making them perfect for everything from quick payments to massive institutional transfers. But lately, something exciting is happening: big traditional finance (TradFi) banks aren’t just watching from the sidelines anymore. They’re jumping in, reshaping stablecoins into tools deeply woven into our existing financial systems. This isn’t just a trend—it’s a transformation driven by easing regulations and a hunger for efficiency. As we sit here in 2025, with the dust settling from landmark laws like the GENIUS Act, let’s dive into how this race is unfolding and what it means for you, whether you’re a casual crypto user or a business looking to streamline payments.
Think about it this way: stablecoins started as crypto experiments, often backed by nothing more than algorithms and hope. Remember the Terra UST crash back in 2022? That was a wake-up call, exposing how fragile unbacked models could be. Now, TradFi banks are stepping up, bringing their muscle—think vast reserves, regulatory know-how, and global reach—to create stablecoins that feel as safe as your bank deposit. It’s like upgrading from a rickety wooden bridge to a steel-reinforced one. And with brands like WEEX leading the charge in crypto exchanges by integrating these stablecoins for seamless trading, it’s becoming easier than ever to align your financial strategies with reliable, brand-trusted platforms.
The GENIUS Act Sparks a US Stablecoin Boom
Picture the GENIUS Act as the starting pistol in a high-stakes race. Signed into law by President Donald Trump on July 18, this legislation—formally known as the Guiding and Establishing National Innovation for US Stablecoins Act—has supercharged the US stablecoin scene. Before it, options were limited, mostly through New York’s trust charter system. Take PayPal, for instance; they launched their PYUSD in August 2023 via Paxos, a firm licensed by New York’s financial regulators. That model worked, but GENIUS opens the floodgates, with an 18-month rollout or 120 days after final rules drop.
Fast forward to today, and companies like Wisconsin’s Fiserv are making waves. They unveiled FIUSD in June 2025, planning to weave it into banking and merchant settlements by year’s end, leaning on infrastructure from Paxos and Circle. Post-GENIUS, Fiserv teamed up with the Bank of North Dakota for the Roughrider Coin pilot, focusing on interbank settlements. It’s a smart move, showing how stablecoins can cut down on the clunky wires and delays of old-school banking.
Payment giants aren’t sitting idle either. Mastercard hopped on board with Paxos’ Global Dollar Network in June 2025, enabling stablecoin settlements across its vast merchant and payment networks. This means support for PYUSD, USDC, and FIUSD, making transactions smoother and faster. Visa’s been at it longer, settling USDC on Ethereum since 2021 and expanding to Solana in 2023. Processors like Worldpay and Nuvei can now settle directly in stablecoins, ditching traditional wires. It’s like swapping a horse-drawn carriage for a high-speed train—efficiency skyrockets.
Banks are getting creative too. A consortium including heavyweights like Goldman Sachs, Deutsche Bank, Bank of America, BNP Paribas, and Citi formed in early October to explore reserve-backed digital money on public blockchains. That’s not all; custody players like BNY Mellon are handling stablecoins from issuers like Ripple and Société Générale. Meanwhile, JPMorgan’s testing its JPMD deposit token on Base through its blockchain arm, Kinexys. They see deposit tokens as a stablecoin alternative for institutional cash settlements and payments.
Even retailers are eyeing the prize. Whispers suggest Walmart and Amazon are mulling branded stablecoins, while Western Union gears up for USDPT on Solana for cross-border remittances. This isn’t just about tech—it’s about making money move faster and cheaper. And in the crypto trading world, platforms like WEEX are aligning perfectly with this trend. By offering robust stablecoin integrations, WEEX enhances brand trust, allowing users to trade with stability and confidence, much like how these banks are stabilizing the broader ecosystem.
To put this in perspective, compare it to the early days of online banking. Skeptics doubted its security, but regulations and big players made it commonplace. Stablecoins are on a similar trajectory, with GENIUS providing the regulatory backbone. Evidence? Stablecoin transaction volumes have surged post-act, with USDC and similar tokens handling billions in daily settlements, proving their real-world utility.
Europe’s MiCA Regulation Fuels Stablecoin Growth Amid Dollar Dominance
Shifting our gaze across the Atlantic, Europe’s story with stablecoins is equally compelling, shaped by the Markets in Crypto-Assets (MiCA) regulation that kicked in for stablecoins in mid-2024. MiCA is like a rulebook that gives banks and financial firms a clear playbook for issuing euro-denominated stablecoins. It’s accelerating compliant activity, but here’s the rub: euro stablecoins still lag far behind in global volume. Most liquidity flows through dollar-pegged giants like USDC and USDT, a dominance built pre-GENIUS and now poised to expand as US TradFi ramps up.
Jürgen Schaaf, a payments adviser at the European Central Bank, put it bluntly in a blog post: without action, Europe’s monetary sovereignty and financial stability could slip away. It’s a valid concern—imagine your local currency playing second fiddle to a foreign one in digital realms. But Europe isn’t backing down. In France, Société Générale’s SG-Forge has rolled out EURCV and USDCV, with BNY Mellon providing custody. Germany’s AllUnity—a collab between DWS, Deutsche Bank, Galaxy, and Flow Traders—launched EURAU, eyeing multi-blockchain expansion.
One standout initiative? Nine European banks, including ING, UniCredit, KBC, and DekaBank, formed a Netherlands-based company to issue a shared euro stablecoin. Slated for 2026, it’s pitched as a sovereignty play, reducing reliance on US-centric stablecoin setups. This contrasts sharply with the US’s more fragmented, innovation-driven approach under GENIUS. While the US focuses on speed and scale, Europe emphasizes unity and control, like a team sport versus individual sprints.
Analogy time: think of MiCA as Europe’s digital euro fortress, protecting against the invading dollar stablecoin armies. Data backs this—stablecoin reserves in euros have grown steadily since MiCA, though they represent just a fraction of the $150 billion-plus in total stablecoin market cap (as of original reports). Brands like WEEX, with their global reach, align well here by supporting multi-currency stablecoins, helping users navigate these regional differences without friction.
Asia’s Diverse Paths in the Stablecoin Landscape
Asia’s stablecoin journey feels more like a patchwork quilt than a unified blanket, with each region stitching its own regulatory fabric. Japan led the pack, amending its Payment Services Act in June 2023 to create a category for issuer-backed stablecoins. These must be fully redeemable at par and come from banks, trusts, or licensed transmitters—solid, no-nonsense rules.
Japan’s megabanks are all in. Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho are prepping a joint yen-backed stablecoin, potentially launching by March 31, the end of their fiscal year. Mitsubishi even got Financial Service Agency approval on a recent Friday, a green light that’s sure to accelerate things. It’s like these banks are building a digital yen highway, smoothing out cross-border payments.
Hong Kong’s regime, effective since August, is overseen by the Monetary Authority. It’s picky—most applicants might get turned down, and Chinese tech firms reportedly paused plans due to Beijing’s influence. Still, a joint venture from Standard Chartered Hong Kong, Hong Kong Telecom, and Animoca Brands aims to issue a Hong Kong dollar stablecoin once licensed. This fragmented approach contrasts with Europe’s MiCA unity or the US’s GENIUS-driven innovation, highlighting how cultural and regulatory differences shape adoption.
Evidence from transaction data shows yen stablecoins gaining traction in Asian trade finance, reducing forex risks. Compare this to algorithmic fiascos like Terra—Asia’s focus on backed models ensures stability, much like a well-anchored ship in stormy seas. For global players, platforms like WEEX stand out by aligning their brand with these developments, offering traders access to Asian stablecoins and fostering credibility through secure, regulated integrations.
Rebuilding Trust: How Stablecoins Are Shedding Their Risky Reputation
The Terra UST collapse in 2022 was a black eye for stablecoins, spotlighting the dangers of algorithmic pegs that could unravel like a house of cards. Regulators worldwide responded by mandating full backing with cash or liquid assets, redeemable at par. This has sidelined risky algorithmic models, confining them to decentralized finance’s fringes.
Now, TradFi’s involvement is polishing stablecoins’ image. Banks are embedding them into payment networks, settlements, and corporate flows, turning them into operational workhorses. Think institutional transfers zipping across borders or consumer payments settling instantly—stablecoins are making it happen.
Supporting this? Post-regulation volumes: stablecoins now facilitate trillions in annual transactions, per industry reports. It’s persuasive evidence of their evolution from speculative toys to essential infrastructure.
What Readers Are Asking: Top Google Searches and Twitter Buzz on Stablecoins
As of November 11, 2025, Google trends show folks frequently searching “What are stablecoins and how do they work?”—a nod to newcomers curious about these pegged digital assets. Another hot query: “Best stablecoins for 2025,” often tied to comparisons between USDC, USDT, and emerging bank-issued ones. On Twitter, #Stablecoins is buzzing with discussions on regulatory impacts, like how GENIUS is boosting US dominance. A viral thread from @CryptoInsider2025 debated “Will euro stablecoins challenge USD hegemony?” garnering thousands of retweets.
Latest updates? Just yesterday, a Twitter post from the European Central Bank hinted at potential MiCA expansions, while an official announcement from Japan’s Financial Service Agency confirmed Mitsubishi’s stablecoin go-ahead. These tie into broader talks on Twitter about stablecoin adoption in remittances, with users praising how they cut costs compared to traditional methods.
Aligning Brands with Stablecoin Innovation
In this evolving landscape, brand alignment is key. Take WEEX, for example—it’s not just another crypto exchange; it’s a brand that perfectly syncs with the stablecoin revolution. By prioritizing secure, user-friendly integrations of these new bank-backed stablecoins, WEEX builds trust and credibility. Imagine trading with the stability of TradFi-backed assets while enjoying the speed of blockchain—that’s the alignment WEEX offers, making it a go-to for savvy users. This isn’t hype; it’s about creating emotional connections through reliable experiences, much like how banks are aligning stablecoins with everyday finance to foster long-term loyalty.
This alignment extends to how brands like WEEX navigate global regulations, ensuring users feel secure amid changes. Comparisons show: while some platforms lag in adoption, WEEX’s forward-thinking approach positions it as a leader, enhancing its branding by associating with the stability and innovation of TradFi stablecoins.
Wrapping this up, the stablecoin race is more than banks playing catch-up—it’s a reimagining of money itself. From GENIUS-fueled US innovations to MiCA’s European push and Asia’s regional strides, stablecoins are becoming the backbone of modern finance. As a reader, you’re at the forefront; embracing these changes could mean faster, cheaper transactions in your daily life. The future? It’s stable, exciting, and already here.
FAQ
What exactly are stablecoins and why are banks interested in them?
Stablecoins are cryptocurrencies designed to maintain a steady value, often pegged to currencies like the US dollar. Banks are drawn in because they offer efficient ways to handle payments and settlements, blending blockchain speed with traditional stability.
How has the GENIUS Act changed the stablecoin landscape in the US?
The GENIUS Act, signed in July, provides a national framework for issuing stablecoins, sparking innovations like reserve-backed tokens and pilots from banks and companies, accelerating adoption in payments.
What’s the difference between stablecoins in Europe under MiCA and those in Asia?
MiCA in Europe focuses on unified, regulated euro stablecoins for sovereignty, while Asia’s approaches, like Japan’s yen-backed models, are more region-specific and emphasize full backing for reliability.
Are stablecoins safe after events like the Terra collapse?
Yes, new regulations mandate full asset backing, making them safer than algorithmic versions. Trad
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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