Bridge uses stablecoins to address global financial challenges caused by local currency limitations. It aims to simplify cross-border transactions, provide dollar access in unstable economies, and reduce costs associated with traditional money movement. Bridge has partnered with organizations to facilitate payouts, cross-border payments, and FX operations by offering stablecoin orchestration and issuance.

Russia is considering legalizing stablecoins for international transactions to improve cross-border payments and mitigate the effects of ongoing sanctions. The Russian Central Bank is looking to regulate the transaction chain from entry to utilization. Its initiative would primarily target facilitating transactions with BRICS countries effectively integrating stablecoins into the national framework for international settlements.

MUFG, SMBC, and Mizuho, the megabanks of Japan, are piloting a cross-border stablecoin transfer platform. The initiative, “Project Pax,” will use stablecoins issued by bank-backed Progmat and run by Datachain and TOKI. It will use SWIFT's existing APIs to settle on blockchain networks and be commercialized by 2025.

Brian Armstrong, co-founder & CEO of Coinbase, highlights the impact of decentralized, low-cost, fast payment solutions like stablecoins on global finance, noting the potential to revolutionize everyday transactions and payments by reducing costs and increasing efficiency, similar to the drastic shift seen in the messaging industry.

In recent discussions surrounding blockchain technology, a significant concern has emerged regarding the effectiveness of interoperability solutions. Billions of dollars have been invested in interoperability infrastructure over the past few years, yet the progress has been minimal. The primary advancement has been the ability to transfer tokens across different chains, but this has not resolved the underlying issues that developers face. Users continue to bridge tokens to execute actions, and developers are still dedicating substantial resources to create decentralized finance (DeFi) primitives for their rollups. This situation has led to a fragmented ecosystem where applications like Pendle operate across multiple protocols and chains. The current state of rollups is described as intra-operable rather than truly interoperable, which poses a significant challenge for developers building on-chain applications. The risk is that a developer may invest considerable effort into creating an application, only to find that the chosen blockchain lacks adequate bridge connectivity, effectively isolating their project. The critique of traditional interoperability solutions highlights their failure to address fragmentation. True interoperability should eliminate the need for bridges and liquidity bootstrapping, allowing applications to function seamlessly across chains without sacrificing performance or security. However, the expansion of blockchain networks remains slow and costly. Solutions that rely on point-to-point connections, such as LayerZero, impose high costs and lengthy engineering timelines for each new connection. This model is not sustainable as the number of rollups continues to grow rapidly. Hub and spoke protocols, like those offered by Axelar, present some improvements but still suffer from throughput and latency issues. The argument against these solutions is that they often rely on third-party setups or multi-signature arrangements for security, which may not be as robust as leveraging the security of established networks like Ethereum. To address these challenges, the introduction of Polymer Hub is proposed as a solution. Polymer Hub aims to provide applications with high-performance connectivity and minimal overhead. It promises free and rapid expansion, real-time latency, and protection against reorganization, creating a new design space for applications akin to cloud-native environments. The creators of Polymer Hub, including Peter Kim and his collaborator, believe that this approach can alleviate the interoperability concerns that currently plague developers in the blockchain space. They invite developers to reach out for more information on how Polymer Hub can simplify their interoperability needs.

Bloomberg's ‘Odd Lots' podcast this week covered stablecoins and their legitimate use globally as a payment and settlement platform. Stablecoins significantly improve legacy payment systems by offering cheap, near-instant, and light-regulation options for citizens of any country to send US dollar-backed digital assets. This marks one of the leading legitimate use cases of the highly speculative crypto industry.

Uniswap Labs has recently highlighted the challenges faced by intents-based systems in the decentralized finance (DeFi) space, particularly their fragmentation and lack of a unified cross-chain standard. To address these issues, Uniswap has collaborated with Across Protocol to propose ERC-7683, a new standard aimed at creating a universal filler network that enhances the user experience across various applications. The mechanics of ERC-7683 involve users signing a cross-chain order, with their funds being held in escrow within a settlement contract. Multiple fillers then compete to fulfill the order at the destination, and the successful filler executes the action, releasing the funds. This standard is designed to streamline the process for applications, fillers, and users alike. Applications can route intents to a broader network, fillers face lower barriers to entry, and users benefit from quicker fills and reduced gas fees. Importantly, the implementation of ERC-7683 is open to anyone, promoting widespread adoption and innovation. In addition to this proposal, Uniswap has been actively enhancing its platform with features like limit orders, which allow users to buy and sell tokens at predetermined prices without constant market monitoring. The limit orders are gas-free and can be set for any swap size, providing flexibility and ease of use. Uniswap has also introduced UniswapX, a new auction-based protocol that aggregates trading across various automated market makers (AMMs) and liquidity sources. This initiative aims to improve liquidity, pricing, and transaction efficiency while offering protection against miner extractable value (MEV) and eliminating costs for failed transactions. The ongoing development of Uniswap, including the introduction of hooks in version 4, allows for greater customization of liquidity pools. These hooks enable developers to innovate by adding new functionalities, such as dynamic fee adjustments and custom order types, thereby enhancing the platform's capabilities. Overall, Uniswap is positioning itself as a core financial infrastructure within the DeFi ecosystem, focusing on community engagement and feedback to drive its evolution. The introduction of standards like ERC-7683 and features like limit orders and UniswapX reflects a commitment to improving user experience and fostering a competitive environment for liquidity providers and traders alike.

Beginning on June 30, Binance will implement phased restrictions on "Unauthorized Stablecoins" for European Economic Area (EEA) users to comply with new MiCA stablecoin regulations. Binance will transition these users towards "Regulated Stablecoins" as they become available to ensure compliance and to minimize market disruption.

Transporter introduces a new level of security in the crypto space, offering Level-5 security, 24/7 customer support, and a user-friendly experience to ensure safe and confident cross-chain transactions. This innovation aims to address the over $2.8 billion previously lost to hacks in token bridges.

Transporter is a new cross-chain bridge developed in collaboration with the Chainlink Foundation. It is designed to securely transfer tokens across multiple blockchains, addressing the industry's need for better security in the wake of $2.83 billion lost to bridge hacks. Transporter prioritizes security, utilizing Chainlink's CCIP for protection and offering a user-friendly interface with 24/7 support and a visual tracker.

Revolut, a fintech giant known for its crypto-friendly services, is reportedly working on launching its own stablecoin, aiming to expand its cryptocurrency offerings with a compliance-focused approach. This move would position Revolut alongside other stablecoin issuers like PayPal, Ripple, and BitGo as the sector continues to grow.

Tether CEO Paolo Ardoino is concerned about the EU's MiCA regulation for stablecoins. He asserts that the new requirements complicate stablecoin operations and increase their vulnerability and risk. In other news, Binance has announced plans to restrict "unauthorized" stablecoins in Europe to comply with MiCA, potentially affecting other exchanges and the accessibility of stablecoins like USDT.

Mastercard is partnering with major U.S. banking institutions like Citigroup, Visa, and JPMorgan to test a tokenized settlement system on a shared ledger platform, aiming to streamline multi-asset class settlements. This Regulated Settlement Network (RSN) trial integrates different asset types like treasuries and commercial bank money into a unified system, potentially improving settlement efficiency and lowering risks associated with traditional finance systems.

Circle has partnered with Sony Block Solutions Labs to integrate Bridged USDC on the Soneium blockchain, enhancing its use as a primary token for secure, borderless transactions. This collaboration aims to empower creators in the digital economy, leveraging decentralized technologies to drive innovation and global accessibility on Soneium, a versatile Ethereum layer 2 platform.

In a future where stablecoins and blockchain technology are ubiquitous, digital currencies have revolutionized global finance, fostering economic inclusivity and redefining value exchange. As AI, privacy-preserving technologies, and innovative regulation shape this new era, society must navigate the balance between the benefits of programmable money and the preservation of individual freedoms, while collectively striving towards a more equitable and sustainable economic future.

Ramon Recuero introduces Musubi, a new platform designed for seamless asset swaps across the Ethereum network without the need for custodial wallets. Musubi aims to address the issue of fragmented liquidity within the Ethereum ecosystem, allowing users to swap assets as if they were on a single chain. This initiative is part of a broader effort to create a more integrated and cohesive DeFi environment. The platform emphasizes that creating Layer 2 solutions that replicate existing liquidity pools is counterproductive. Instead, Musubi seeks to enhance the user experience by aligning incentives across the ecosystem and promoting integration. The name "Musubi" reflects a deeper philosophical concept of interconnectedness, which resonates with the Kinto brand's mission. Key features of Musubi include non-custodial chain-abstracted swaps, ensuring that assets remain insured within the Kinto wallet. The platform is designed to work for users, finding the best liquidity across chains and executing swaps efficiently. Security is a priority, with Kinto's identity layer minimizing fraud and providing enterprise-grade security through wallet insurance and advanced user experience features. Users can expect benefits such as reduced slippage, lower gas fees, and simplified access to liquidity without needing to navigate complex bridging processes. The swapping process is streamlined, allowing users to complete transactions in under a minute. Musubi has partnered with several leading companies to enhance its functionality, including Socket for chain abstraction and Turnkey for non-custodial wallets. The platform is not limited to swaps; it plans to extend its capabilities to other DeFi primitives like lending, borrowing, and real-world assets, all while maintaining a seamless user experience. In summary, Musubi aims to unify fragmented liquidity within the Ethereum ecosystem, promoting a more efficient and user-friendly approach to asset swaps. The initiative is positioned as a significant step towards a more interconnected financial system on the blockchain, with a focus on security and user experience. Users are encouraged to try Musubi and participate in the transition to a chain-less future in Ethereum finance.

Digital Asset has successfully tested its Canton Network, a blockchain service involving major financial firms including Goldman Sachs and BNY Mellon. The trial allowed the seamless transaction and settlement of tokenized assets, with uses ranging from fund registry to margin management. The successful execution of 350 simulated transactions demonstrated potential advantages including reduced risk and optimized capital.

Visa is taking significant steps to support banks in the testing of tokenized assets and smart contracts, marking a pivotal move in its engagement with the cryptocurrency sector. The company has developed a new platform designed specifically for the development and testing of fiat-backed tokens. This initiative has already been utilized by Banco Bilbao Vizcaya Argentaria in Spain, showcasing Visa's commitment to evolving the way global banks operate within the changing financial landscape. The concept of tokenization is gaining traction, with industry leaders recognizing its potential. Larry Fink, CEO of BlackRock, a major asset management firm, has emphasized that the future of finance will involve the tokenization of financial assets. Visa's Crypto Head, Cuy Sheffield, has echoed this sentiment, highlighting the opportunities for banks to issue their own fiat-backed tokens on blockchain technology. He stressed the importance of doing this in a regulated manner to allow customers to engage with on-chain capital markets. Sheffield also pointed out that central banks are exploring the implications of tokenization, which could significantly modernize and digitize financial systems. The potential for integrating real-world assets onto blockchain platforms is vast, and with Visa's involvement, this transformation could occur more rapidly. Overall, Visa's initiatives reflect a broader trend in the financial industry towards embracing digital assets and the innovative possibilities they present.

Cross-L2 interoperability problems require considerable effort, but we should quickly achieve a seamless UX across Ethereum-based rollups. Work is being done on chain-specific addresses, cross-L2 sends using liquidity providers, L2 light clients, and replayable account state updates. In Phase 2 of the roadmap, shared key management and proof aggregation will further improve the experience.

USDC is now accessible in Brazil and Mexico through local real-time payment systems, significantly expediting transactions with local currencies and integrating digital dollars into TradFi operations.

This map highlights the various companies building across the expansive stablecoin industry. Categories include exchanges like MoonPay and MoneyGram, payment cards from Gnosis and Naka, and remittance platforms like Bitso and DolarApp.

Crypto.com is partnering with Standard Chartered to expand access to multiple fiat currencies including USD, euros, and Dirhams through a new retail services business managed from its regional hub in Dubai. Servicing 90 countries, this collaboration aligns with the UAE's economic diversification goals and marks a significant step in Crypto.com's global expansion strategy.

Stable Jack, a new protocol on Avalanche, was rolled out to build a yield-bearing stablecoin called aUSD. The aim of the initiative is to produce a capital-efficient, risk-free, decentralized yield-bearing stablecoin, creating an alternative stablecoin option for Avalanche users that is more efficient and easier than other options.

Fintech companies Robinhood and Revolut are reportedly exploring the possibility of launching their own stablecoins, a move that aligns with recent regulatory developments in Europe aimed at enhancing the stability and transparency of the cryptocurrency market. This potential entry into the stablecoin sector comes as the market is increasingly dominated by Tether's USDT, which has a market capitalization exceeding $119 billion. Tether has experienced significant growth, particularly during periods of economic uncertainty and volatility in the cryptocurrency market. The company has reported record profits, amounting to $5.2 billion in the first half of 2024, and has bolstered its reserves with a substantial amount of U.S. government bonds. This success has attracted the attention of other companies looking to enter the stablecoin market, although neither Robinhood nor Revolut has officially confirmed their intentions. The regulatory landscape is shifting, particularly with the implementation of the European Union's Markets in Crypto-Assets (MiCA) regulation, which is set to transform how stablecoins are created, sold, and traded. The first phase of MiCA regulations, which focused on reserve requirements and transaction volume caps, took effect on June 30, 2024. A second phase, scheduled to begin on December 30, 2024, will extend these regulations to crypto-asset service providers, including exchanges and wallets. Under the new regulations, stablecoins, referred to as "asset-referenced tokens" or "electronic money tokens," will face strict controls, including daily transaction volume limits of $200 million for payment purposes. These changes are expected to reshape the stablecoin market, prompting companies to reassess their offerings and strategies in light of the evolving regulatory environment.

Hyperlane allows rollups to permissionlessly connect with fast and cheap bridging. Its AVS, powered by EigenLayer and secured by restaked ETH, connects any rollup with any other without requiring liquidity or validators to secure the bridging. The AVS is live on mainnet. More details will be revealed over the next few weeks.

The Ethereum wallet experience is fragmented and complex due to bridging, gas, and dozens of rollups. MagicSpend++ is a framework that allows users to have a chain abstracted balance instead of isolated token balances across chains. It uses account abstraction to create a single-chain experience with no bridging or latency, mimicking a credit card experience where users have their funds pulled by a paymaster later.

Stablecoins are in the midst of becoming a massive industry. We may see thousands and potentially the first $1T stablecoin this decade. Even though fiat currency worldwide is experiencing inflation, the current fifth technical revolution means that there will be significant demand for niche products in the digital age. Stablecoins, many with different designs and developer composability, enable a big-bang moment leading to greater capture of the “broad money M2” market.

On September 24, OnchainKit announced the release of their upgraded Swap Component, version 0.33.1, which introduces several new features aimed at enhancing user experience in token swapping. Key updates include support for low liquidity tokens on the Base network, configurable maximum slippage, and the display of token values in USD, allowing users to make more informed trading decisions. The new slippage configuration options empower users to set their preferred slippage tolerance, ensuring that trades execute according to their individual risk preferences. Additionally, the one-click swap feature, which utilizes atomic batching, streamlines the swapping process, reducing the number of clicks required from three to one. Another significant enhancement is the introduction of gasless swaps, which allows users with smart wallets to conduct transactions without needing to pay gas fees upfront. This is facilitated by a Paymaster service that can sponsor these transactions. Furthermore, the update includes an app interface fee feature, enabling applications to charge a fee when users swap tokens through their interface. This opens up new revenue streams for developers and is currently in private beta, inviting interested parties to reach out for participation. OnchainKit emphasizes its commitment to community involvement by encouraging feedback and contributions through their GitHub page. They also maintain an open-source design philosophy, inviting designers to join their Figma community and customize the design elements for their own projects. Overall, these updates reflect OnchainKit's goal of simplifying the development of on-chain applications and enhancing user experiences in the decentralized finance space.

USDT is launching on the Aptos blockchain as part of its strategy to make digital currency more accessible and useful. The introduction of a top stablecoin on Aptos is a significant milestone. Recent metrics suggest Aptos has hundreds of thousands of daily active users and the capacity to handle 30,000 TPS.

Circle has announced that its stablecoins, USDC and EURC, are now compliant with the new EU stablecoin regulations (MiCA), making it the first global stablecoin issuer to meet these standards. Effective immediately, Circle is issuing these stablecoins directly to European customers from its French headquarters, making USDC the leading regulated digital dollar in the EU market and enabling high growth for Euro digital currencies.