Stablecoins

Swiss National Bank governing board member Martin Schudin has voiced concern that the growing use of stablecoins could weaken the role of central banks, amid mounting official scrutiny of dollar-pegged digital tokens and their impact on monetary policy and banking systems.

Circle Internet Group, the company behind the USDC stablecoin, has launched the mainnet of Arc, its blockchain network, and announced an expansion into payments for banks. The move marks a step in Circle's effort to position stablecoin infrastructure within traditional financial institutions, drawing attention from investors tracking CRCL shares.

Stablecoin issuer Circle Internet Group has launched Arc, a new blockchain platform, alongside an added capital raise, prompting debate among investors over whether its stock is undervalued after its public listing. Commentary is focusing on how the new product and fresh funding will affect Circle's growth prospects and whether the share price reflects the company's fundamentals.

Aztec Labs has relaunched zk.money, its privacy-focused wallet on Ethereum, adding support for deposits in the DAI stablecoin. The move lets users transact with an extra layer of privacy while holding a dollar-pegged asset. Coverage across multiple outlets has focused on how the update expands private finance options on Ethereum and what it means for privacy tooling in decentralized finance.

The Swiss National Bank says the growing use of stablecoins could interfere with how monetary policy is transmitted to the economy, warning that widespread adoption of privately issued digital dollars may blunt the effect of central bank interest rate decisions. The comments add a central bank voice to the ongoing debate over regulating dollar-pegged tokens.

A new Senate bill proposes exempting small stablecoin purchases from tax and closing the wash-sale loophole that lets crypto investors claim losses and immediately rebuy. If passed, everyday payments with stablecoins would no longer trigger taxable events, while traders would lose the ability to harvest losses on Bitcoin, XRP and other coins. Holders are weighing what the changes would mean for reporting and strategy.