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This Week’s Highlights:
- Bank of England proposes new rules allowing up to 60% of backing assets in government debt for systemic stablecoins
- OKX launches USD-stablecoin payments and debit card services in Brazil
- Yield-bearing stablecoins suffer sharp exits after collapse of 3 tokens raises alarm across the sector
Bank of England Proposes New Rules for Stablecoins
The Bank of England has unveiled a consultation paper proposing that issuers of stablecoins deemed “widely used for payments” in the UK be allowed to invest up to 60% of their backing assets in short-term government debt, with the remaining 40% held directly with the Bank. Previously, the Bank had proposed requiring 100% of backing assets be held at the central bank, a model widely criticized for making stablecoin issuance commercially unviable. The new approach is part of a broader stablecoin regulation regime set to launch in 2026.
The proposed regime also suggests imposing caps on how much individuals and businesses can hold of systemic stablecoins and indicates the Bank may provide liquidity support to issuers in times of stress. Investors and capital allocators managing stablecoins will need to monitor how these rules reshape the backing models, treasury management practices, and risk frameworks for regulated stablecoins.
OKX Expands Stablecoin Payments and Debit Card Services in Brazil
Crypto exchange OKX has launched its USD-denominated stablecoin payments and debit card services in Brazil. Through OKX Pay and OKX Card, Brazilian users can convert Brazilian real into USD-stablecoins, spend globally via a Mastercard-linked card, and access yield of up to 10% APY on stablecoin balances without lock-ups. The move comes at a time when Brazil is among the world’s fastest-growing crypto markets and when inflation and currency volatility drive demand for dollar-pegged digital assets.
This deployment marks a transition for stablecoins into mainstream everyday usage across emerging markets. For treasury teams and compliance officers, it underscores the importance of integrating payments infrastructure, yield features, and on-chain liquidity into a robust stablecoin management system that meets regulatory, operational, and risk requirements.
Yield-Bearing Stablecoins Face Mass Exodus After Token Collapses
Yield-bearing stablecoins are undergoing a significant downturn after three tokens collapsed, triggering a wave of redemptions and market exits. According to reports, one token faced over US$700 million in redemptions in a week after its algorithmic model and delta-hedging structure failed under stress. The episode reinforces long-standing concerns about collateral design, liquidity risk, and transparency in stablecoin structures that offer high yields.
For institutions and allocators, this moment acts as a risk-management inflection point. It reminds that high yield does not equal low risk and that stablecoin treasury management must emphasise backing quality, redemption pathways, and systemic resilience — especially when stablecoins scale into mainstream financial infrastructure.
