Visa Launches USDC Settlement Capabilities and Stablecoin Advisory Practice, XRP ETF Inflows Surpass $1B, and UK Treasury Makes Plans for Crypto Legislation

Takeaways

• Visa will allow US institutional clients to settle transactions in Circle’s USDC on the Solana blockchain: The new settlement functionality marks Visa’s first time implementing stablecoin settlement for the US banking system.
• Banking giant JPMorgan has launched My Onchain Net Yield Fund (MONY), the firm’s first tokenized money-market fund based on Ethereum: JPMorgan has invested $100 million in the fund, which aims to combine money-market stability with the advantages of onchain finance.
• Visa has launched a “stablecoins advisory practice" to help banks and fintechs implement stablecoin strategies into their operations: The launch comes as the stablecoin market’s total market cap crosses the $300 billion mark.
• US spot XRP ETFs have crossed the $1 billion mark in cumulative inflows since the funds began trading: Since their launch on November 13, Canary and Grayscale have led cumulative flows into the XRP funds.
• The UK Treasury has announced plans to enact legislation by 2027 to bring crypto regulation under the same framework as traditional finance: The new rules will bring oversight of the crypto space under the Financial Conduct Authority (FCA) and will aim to improve clarity on crypto rules in the UK.

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Visa Opens US Network to USDC Settlement Based on Solana Blockchain

The stablecoin settlement capabilities will be available to Visa’s institutional clients, and it has already been adopted by clients including Cross River Bank and Lead Bank.

These stablecoin settlement capabilities reportedly aim to offer clients 24/7 onchain liquidity, shortened settlement times, and reduced costs. It will also support Circle’s recently announced Ark network once it launches. The move was made possible in part by the GENIUS Act signed into law in July of this year, which brought clarity around how stablecoins are regulated in the US.

Visa competitor Mastercard has also made plans to integrate stablecoins into its settlement system. This week, the firm announced a partnership with ADI Foundation to bring its stablecoin capabilities into the UAE. Earlier this year, Mastercard also announced a partnership with Circle to offer USDC and EURC settlement for payment-enabling banks in Europe, the Middle East, and Africa.

JPMorgan Launches MONY, Tokenized Money-Market Fund Based on Ethereum

The vehicle will carry a minimum investment of $1 million and will be available for qualified investors. MONY will reportedly aim to combine conventional money-market funds with the advantages of blockchain finance such as near-instant settlement and transparent ledgers.

The launch has made JPMorgan one of the biggest banks globally to offer a tokenized fund, after firms such as BlackRock deployed similarly blockchain-based vehicles. Investors in MONY will be able to redeem their shares in the fund for either cash or USDC, which makes the fund practical as both a reserve asset for DeFi operations and as a cash-management tool.

Executives at JPMorgan have described MONY as part of wider testing plans exploring the viability of scaling further blockchain-based operations. MONY has been initially seeded with an $100 million of JPMorgan’s own capital, and if considered a success, the firm could move to expand its involvement in the digital assets sector in the coming years.

Visa Launches Stablecoins Advisory Practice to Aid Bank Implementations

The new advisory arm will come under Visa’s Consulting and Analytics division, and will aim to provide training and analysis for organizations to identify the best strategies for utilizing stablecoins.

This is not Visa’s first foray into the stablecoin sector, as the launch builds on the company’s $3.5 billion annualized run rate in stablecoin settlement volume. Visa already supports over 130 stablecoin related card-issuing programs, which span over more than 40 countries. The new stablecoins advisory branch has already taken Pathward, Navy Federal Credit, and others as early clients.

Executives at the firm said the program will accelerate institutional adoption of stablecoins as a means of payment and streamlining operations. Bullish forecasts for the space have predicted that its value could balloon to the trillions over the next 10 years. Currently, the total market cap of the space sits at around $309 billion.

Spot XRP ETFs Cross $1 Billion of Cumulative Inflows

The milestone was reached on Monday, after the funds recorded $10.89 million in net inflows. The flows were led by Canary and Grayscale, as institutional investors continue to show interest in regulated exposure to digital assets.

XRP ETF-related flows also diverged from those of bitcoin-related ETFs on Monday, with bitcoin-linked funds logging close to $360 million in net outflows. Market commentators have suggested the poor performance on bitcoin-linked funds is likely due to macro-economic jitters, and traders looking to lower their leverage before the end of the year. For now, however, XRP-linked funds seem less affected by these macro-concerns.

UK Treasury Announces Plans For Comprehensive Crypto Regulations By 2027

The proposed changes involve the UK’s Financial Conduct Authority (FCA) enforcing a standardized set of rules, including anti-money-laundering requirements, know-your-customer checks, and other reporting rules which will make it easier to detect illicit actions.

Industry participants have long called for increased regulatory clarity for crypto operations in the country, and there is hope that these revisions will provide this. The announcement also follows recent changes in the UK which recognised digital assets as property. The FCA is also ramping up efforts to regulate GBP-pegged stablecoins to enhance payment rails in the country. However, some have warned that the new regulations will need to strike a delicate balance between regulatory oversight and overly strict policing of the sector.

-Team Gemini