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31 Mar 2026, 16:00

Convera and Ripple Forge Transformative Partnership to Revolutionize Stablecoin Payment Infrastructure

BitcoinWorld Convera and Ripple Forge Transformative Partnership to Revolutionize Stablecoin Payment Infrastructure Global payments firm Convera has announced a strategic partnership with blockchain enterprise Ripple to fundamentally enhance its stablecoin-based payment capabilities, marking a significant development in cross-border financial infrastructure announced on March 31, 2025. This collaboration directly addresses longstanding industry challenges surrounding transaction speed, liquidity management, and settlement reliability in international finance. Consequently, the partnership signals a maturation phase for enterprise blockchain adoption within traditional payment corridors. Convera and Ripple Partnership Details The core objective of the Convera and Ripple partnership centers on integrating Ripple’s established global payment network with Convera’s extensive financial settlement infrastructure. Specifically, the companies plan to leverage stablecoin technology as a primary settlement layer. This integration aims to create a more efficient financial pipeline. For instance, transactions that previously required multiple intermediary banks can now potentially settle directly. Therefore, the partnership targets measurable improvements in three key operational areas: transaction finality speed, liquidity optimization, and system reliability. Industry analysts immediately recognized the strategic significance of this move. Convera, formerly known as Western Union Business Solutions, processes billions in cross-border transactions annually for businesses and institutions. Meanwhile, Ripple provides enterprise-grade blockchain solutions through its RippleNet network and XRP Ledger. By combining a traditional payments powerhouse with a leading blockchain provider, the alliance creates a hybrid model. This model potentially offers the regulatory compliance of traditional finance with the technological efficiency of digital assets. Stablecoin Payment Capabilities Enhanced The enhancement of stablecoin payment capabilities represents the technical cornerstone of this collaboration. Stablecoins are digital currencies pegged to stable assets like the US dollar. They offer the programmability and speed of cryptocurrency without the volatility of assets like Bitcoin. Convera will utilize these digital instruments to settle transactions on Ripple’s network. This method contrasts sharply with traditional systems like SWIFT, which often involve pre-funded nostro accounts in destination countries, tying up significant capital. The partnership will likely focus on major stablecoins such as USD Coin (USDC) and PayPal USD (PYUSD), which are widely recognized and regulated. Utilizing these assets allows for near-instant settlement and 24/7 operational capacity. Furthermore, it reduces foreign exchange risk and counterparty exposure during the settlement process. The table below outlines the projected improvements: Metric Traditional System Stablecoin Network (Projected) Settlement Time 2-5 business days Minutes to hours Liquidity Requirement High (pre-funded accounts) Reduced (on-demand settlement) Operational Window Business hours, timezone dependent 24/7/365 Transaction Transparency Limited, opaque tracking Enhanced, near real-time tracking Expert Analysis on Market Impact Financial technology experts view this partnership as a validation of blockchain’s utility in wholesale finance. “The Convera-Ripple collaboration is not about displacing traditional currency,” notes Dr. Anya Sharma, a fintech researcher at the Cambridge Centre for Alternative Finance. “Instead, it’s about creating a more efficient settlement rail between regulated entities. This model uses stablecoins as a bridge asset, not as a consumer-facing currency. Consequently, it sidesteps many regulatory hurdles associated with retail crypto payments while delivering tangible efficiency gains.” This analysis aligns with broader trends in institutional finance. Major banks and payment processors are increasingly experimenting with distributed ledger technology for back-office settlement. The partnership provides a concrete use case with immediate scale, given Convera’s existing client base. Moreover, it arrives amid a global push for faster payment systems, such as the Federal Reserve’s FedNow in the United States and the SEPA Instant scheme in Europe. The stablecoin-based network could complement these systems by providing an alternative for specific high-value or cross-currency corridors. Global Payment Network Evolution The evolution of the global payment network is accelerating through such integrations. RippleNet already connects hundreds of financial institutions worldwide. Convera’s integration adds a significant node with deep liquidity and regulatory expertise in numerous jurisdictions. This synergy could encourage other large payment service providers (PSPs) and money transfer operators (MTOs) to adopt similar hybrid models. Therefore, the partnership may serve as a blueprint for the industry. The technical implementation will likely involve Ripple’s Liquidity Hub product or similar solutions. These platforms allow enterprises to source digital assets from multiple liquidity venues. They also manage the conversion between fiat and stablecoins seamlessly. For Convera’s clients, the front-end experience may remain unchanged—a business initiates a payment in euros to a supplier in Mexico. However, the back-end settlement could occur via a USDC transfer on the XRP Ledger, converted to Mexican pesos at the destination. This process eliminates several intermediate steps and associated costs. Reduced Operational Cost: Lower fees from eliminating correspondent banks. Enhanced Speed: Settlements finalize in minutes, not days. Improved Transparency: All parties track the payment in real-time. Better Liquidity Management: Capital is not trapped in nostro accounts. Regulatory Landscape and Compliance A critical factor for the partnership’s success will be navigating the complex regulatory landscape. Both companies have extensive experience in financial compliance. Convera operates under money transmitter licenses globally. Ripple has engaged with regulators through its ongoing legal proceedings and compliance initiatives. Their joint approach will likely emphasize that they are using regulated stablecoins issued by licensed entities like Circle and Paxos. Furthermore, they will implement robust Know Your Customer (KYC) and Anti-Money Laundering (AML) checks at both ends of a transaction. This compliant framework is essential for gaining trust from corporate treasurers and financial institutions. The model does not propose a permissionless, public blockchain for settlement. Instead, it uses a controlled, enterprise-grade network where all participants are vetted financial entities. This structure aligns with regulatory expectations for the “Travel Rule” and other financial surveillance requirements. As a result, the partnership may face fewer regulatory headwinds than consumer-focused crypto payment projects. Conclusion The partnership between Convera and Ripple represents a pivotal step in the modernization of global payment infrastructure. By focusing on stablecoin-based settlement, the alliance targets concrete improvements in speed, cost, and reliability for cross-border transactions. This collaboration provides a scalable model for integrating blockchain technology into traditional finance, emphasizing compliance and enterprise utility. As the initiative progresses, its success could catalyze further adoption of digital asset settlement rails by other major payment processors, fundamentally reshaping how global commerce moves money. The Convera and Ripple partnership, therefore, stands as a significant marker in the ongoing convergence of cryptocurrency innovation and established financial services. FAQs Q1: What is the primary goal of the Convera and Ripple partnership? The primary goal is to enhance Convera’s global payment capabilities by integrating Ripple’s network and using stablecoins for settlement, aiming to improve transaction speed, reduce liquidity requirements, and increase reliability. Q2: How will stablecoins be used in this new payment system? Stablecoins like USDC will act as a bridge settlement asset. Convera will convert sender funds into a stablecoin, transmit it over Ripple’s network, and convert it to the destination currency, enabling faster and cheaper settlement compared to traditional correspondent banking. Q3: Will this partnership affect everyday consumers using Convera’s services? Initially, the focus is likely on business-to-business (B2B) and institutional payments. Consumers may benefit indirectly through potentially lower fees and faster service times if the technology is rolled out across Convera’s broader platforms in the future. Q4: What are the regulatory implications of using stablecoins for cross-border payments? Both companies emphasize using regulated stablecoins and maintaining strict KYC/AML compliance. The model is designed to work within existing financial regulations by partnering with licensed stablecoin issuers and operating as vetted financial entities on a controlled network. Q5: How does this partnership differ from other blockchain payment projects? This partnership is distinctive due to the scale of the participants—a major global payments firm and an established enterprise blockchain provider. It focuses specifically on the back-end settlement layer for institutional flows rather than creating a new consumer-facing payment app or cryptocurrency. This post Convera and Ripple Forge Transformative Partnership to Revolutionize Stablecoin Payment Infrastructure first appeared on BitcoinWorld .

22 Mar 2026, 17:55

A Guide To Stablecoins: Majority Fiat-Backed Stablecoins - USDT, USDC, PYUSD

Summary The most popular stablecoin type, majority fiat-backed stablecoins, dominates global crypto markets and accounts for more than 85% of the $313 billion supply. Variations in the reserves of majority fiat-backed stablecoins stem from differences in their respective business strategies, regulatory authority, and risk appetite. Nearly all majority fiat-backed stablecoin issuers use qualified custodians for their fiat reserve assets, including Treasuries and cash equivalents. The majority fiat-backed ecosystem depends heavily on regulated and trusted centralized entities, including issuers, custodians, financial institutions, and oracles, with strong performance track records. By Raye Hadi, Research Associate, Digital Assets Introduction In Part One of ARK’s four-part guide to stablecoins, we introduced stablecoins and contextualized their development. I argued that the design of each type of stablecoin includes tradeoffs and consequences for holders. This article - Part II of ARK’s Guide - focuses on “Majority Fiat-Backed Stablecoins” and outlines how companies manage their reserves, including the mechanisms that maintain the stability and durability of their stablecoins: governance and compliance, token access and integration, and yield and incentive distribution. The Majority Fiat-Backed stablecoins covered here are: USDC (USDC-USD) (Circle) USDT (USDT-USD) (Tether) PYUSD (PYUSD-USD) (PayPal US Dollar) The most popular stablecoin type, majority fiat-backed stablecoins, dominates global crypto markets and accounts for more than 85% of the $313 billion supply. 1 Now that Congress has passed the GENIUS Act, majority fiat-backed stablecoins are the only eligible options for issuers intending to offer payment stablecoins in the US. The majority fiat-backed stablecoin market is and has been a duopoly, with industry incumbents - Circle’s USDC and Tether’s USDT - dwarfing all competitors. PayPal’s US Dollar (PYUSD) is one of many new entrants attempting to challenge their dominance. In the remainder of this guide, we analyze the majority fiat-backed stablecoins, USDC, USDT, and PYUSD in terms of our five key criteria: Transparency: Clarity and verifiability of reserves, real-time tracking, and user-led analysis Durability: Peg stability, insurance mechanisms, external dependencies, and ability to preserve value Sovereignty: Censorship and seizure resistance, trust surface, and real ownership Accessibility: Usability, integrations, liquidity, and user experience Incentives: Native mechanisms that either reward holders or otherwise share value with users Transparency Composition of Reserves The reserves of majority fiat-backed stablecoins have similar structures, typically consisting of US-denominated cash and cash equivalents like short-term U.S. Treasury securities. Variations in the reserves of majority fiat-backed stablecoins stem from differences in their respective business strategies, regulatory authority, and risk appetite. The charts below illustrate the reserve compositions of USDC, USDT, and PYUSD. Source: ARK Investment Management, based on data from Tether, data as of December 31, 2025. 2 For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security or cryptocurrency. Note: *(Lefthand chart): Cash owed is subtracted from Cash held at regulated institutions for accuracy purposes. Snapshot as of December 31, 2025. Source: ARK Investment Management, based on data from Circle, Paxos, and Stablecoin Insider, data as of December 31, 2025. 3 For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security or cryptocurrency. While each stablecoin is backed ≥75% by fiat-based assets, the composition of their reserves varies, as each issuer targets a different combination of assets to maintain stability. Aligning with its US-centric operations and recent initial public offering ((IPO)), Circle holds all of its reserves in US-denominated cash and cash equivalents, mostly repo agreements and short-term Treasury bills. Similarly, for the same reason, all PYUSD’s reserves are in USD-denominated cash and cash equivalents - mostly cash and repo agreements. Paxos issues and manages PYUSD, operating under the supervision of the New York Department of Financial Services (NYDFS). In contrast, Tether has been focused on the rest of the world, with ~46% of USDT supply on the Tron blockchain that dominates in Latin America, Africa, and Asia. 4 USDT is the stablecoin most frequently used on Tron by a wide margin. 5 Tether is headquartered and licensed in El Salvador 6 as a Digital Asset Service Provider (DASP) 7 and has more latitude than US/EU counterparts to choose the reserves that will back USDT. As a result, Tether has backed USDT with the following reserves: ~24% in bitcoin, precious metals, secured loans, and other investments, and ~76% across various fiat-backed assets. Reserves backing USAT, its recently launched US-focused stablecoin, are required to comply with the GENIUS Act reserve requirements to be considered an eligible payments stablecoin. The reserve management of majority fiat-backed stablecoins has been centralized, based not only on the issuer’s strategic vision but also on the regulatory environment. Centralization gives the issuer more control and thus flexibility to meet its objectives, which is important in adapting to various regulations. Transparency of Reserves Majority fiat-backed stablecoin providers release audits and other reports to reassure investors about the integrity of their reserves. Typically released quarterly or monthly and endorsed by reputable third parties, the reports offer transparency, adding to issuer credibility, as illustrated on the main websites below. USDT (Tether): Tether - Official Home of Tether USDC (Circle): Transparency & Stability | Circle PYUSD (Paxos): Paxos | PayPal USD (PYUSD) Transparency Reports Note: Links to stablecoin issuer websites are provided for informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security or cryptocurrency. Durability Reserves Custodians We list the Reserve Custodians/Managers of each majority fiat-backed stablecoin below. Stablecoin (Issuer) Reserve Custodian(s)/Manager(s) USDT (Tether) Cash & Cash Equivalents : Cantor Fitzgerald, Deltec Bank & Trust, Ansbacher Limited, Capital Union Bank, Far East International Bank, Capital Union, and others Bitcoin : Undisclosed (either stored in non-custodial wallets with private keys held by Tether OR held with a third-party custodian) Precious Metals : Undisclosed Secured Loans : Undisclosed Other Investments : Undisclosed USDC (Circle) Cash & Cash Equivalents : Bank of New York Mellon (BNY), BlackRock PYUSD (Paxos) Repo Agreements + Cash & Cash Equivalents : State Street Bank, BMO Harris Bank, and Trust Customers Bank Source: ARK Investment Management, based on data from Tether, Aave (AAVE-USD), BlackRock (BLK), rwa.xyz, and Circle, data as of December 31, 2025. 8 For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security or cryptocurrency. Nearly all majority fiat-backed stablecoin issuers use qualified custodians for their fiat reserve assets, including Treasuries and cash equivalents. Tether’s is the exception, with undisclosed custodians and storage methods for bitcoin and other non-fiat assets. In contrast, BlackRock manages most of Circle’s reserves in a specialized government money market fund, 9 and Paxos Trust Company legally holds and manages the PYUSD reserves under its New York State Charter while utilizing qualified institutions for safekeeping and settlement in accordance with NYDFS. 10 Anchorage Digital Bank will issue USAT, and Cantor Fitzgerald will custody and manage its reserves. Because Anchorage is positioned as the sole crypto bank with an Office of the Comptroller of the Currency ((OCC)) license, this framework will remove a layer of counterparty risk and custodian fees to which other issuers are subject. Circle is one of many in the process of applying for a federal bank charter, for which the OCC has granted conditional approval. 11 While stablecoin custody arrangements present minimal risks relative to multi-collateral-backed or synthetic dollar models, their designs vary in durability. Placing all assets in segregated, bankruptcy-remote accounts at qualified institutions, for example, Paxos offers the strongest safety guarantees to token holders, even from its own hypothetical bankruptcy, as it legally isolates the reserves and places stringent limits on reserve lending and/or rehypothecation. That said, custodian-level risks cannot be eliminated. Taking a different tack, Circle holds the majority of USDC reserves in a BlackRock 2a-7 government money market fund, 12 which does not offer the same guarantees as Paxos. While segregating USDC reserves from Circle’s corporate balance sheet, this structure is exposed to risks associated with BlackRock. Custodians of USDT reserves include a variety of banks and asset managers, but those for Tether’s USAT will be required to comply with the GENIUS Act reserve requirements with Anchorage Digital as the issuer. Our research suggests that an event that subjects custodians to counterparty risk is unlikely, as all listed custodians are qualified institutions within highly regulated markets. Nonetheless, investors should understand that edge-case scenarios, while highly unlikely, are possible. Depegging Risk and External Dependencies The peg stability of majority fiat-backed stablecoins hinges on two types of factors: those endogenous to the stablecoin design and those exogenous to issuer control. Endogenous factors involve the sovereign powers acting as the creditors of the reserves backing the stablecoin, specifically their insolvency and inability to service debt, as well as operational risks associated with the issuer and custodian(s) of the stablecoin, such as: The solvency risks of the holding institutions and custodians responsible for managing the reserves. The operational integrity and risk management of the issuer itself. While the risk of these factors is low, the collapse of Silicon Valley Bank (SVB) illustrated the fragility of the ecosystem when reserves are stored within fractional-reserve banks, as discussed in Part 1 of our Stablecoin guide. Even more unlikely is the inability of the US government to service its debts. As for the relationship between the stablecoin issuer and its users, token holders provide the issuer with interest-free capital in exchange for a reliable dollar-denominated onchain asset. As a result, the token holder is trusting the issuer’s operational integrity, including legal safeguards like segregated bankruptcy-remote accounts. That said, exogenous factors also play an important role in peg stability. Factors like liquidity depth and internal pricing can result in exchange-specific shocks during periods of stress, such as the recent liquidation event on October 10, 2025 - now known as “10/10” - when USDC depegged by a few cents on Binance for a very short period. 13 USDe, Ethena’s (ENA-USD) synthetic dollar, was most affected, but USDC faced issues as well. This slight depeg was temporary and specific to local issues that resulted from three factors: Internal order book-based pricing Platform-specific liquidity depth One-off outages/downtime caused by system overload During 10/10, although the real cause of the crash remains unknown, the combination of tariff threats and broader macro factors resulted in a sharp drop in token prices. This drawdown caused extreme levels of stress, as an excessively over-leveraged crypto market fell into a cascade of liquidations. Market-wide infrastructure failures followed, as exchanges like dYdX (DYDX-USD) went offline for eight hours and Lighter experienced a 4.5-hour outage. 14 Hosting the largest share of the perpetual futures 15 market, Binance (BNB-USD) experienced outsized traffic during this period, which resulted in application programming interface ((API)) outages that disrupted mint/redeem mechanisms typically used to retain the peg parity of stablecoins. 16 With no outlet, Binance’s internal liquidity was forced to absorb large amounts of USDC denominated liquidations, pushing USDC slightly off its peg relative to USDT, which, while faced with similar issues, remained resilient due to its deeper liquidity on the platform. 17 This problem was exacerbated by USDC holders on Binance seeking refuge in USDT, adding further sell pressure to USDC. Important to note, USDC did not depeg technically, as this was a platform specific issue, but it did respond to local instability issues. In that sense, peg stability was a function not only of reserve integrity, operational structure, and issuer solvency, but also of market structure, exchange-specific pricing, and real-time liquidity conditions. The majority fiat-backed ecosystem depends heavily on regulated and trusted centralized entities, including issuers, custodians, financial institutions, and oracles, with strong performance track records. This ecosystem has proven more durable and reliable than alternatives like multi-collateral-backed stablecoins or synthetic dollars. Peg Stability and Mint/Redemption Mechanism The mint/redeem mechanism is the process by which stablecoins like USDC, USDT, and PYUSD maintain their $1 price peg. This process enables arbitrage that stabilizes the token’s market price, as whitelisted entities: Redeem when the price is below $1: purchase the discounted token on the open market for $0.99, for example, and redeem it for $1 from the issuer, reducing supply and increasing the price. Mint when the price is above $1: send fiat to the issuer to mint at $1, then sell into the market at $1.01, for example, increasing supply and reducing the price. This arbitrage is the stabilizing force behind the peg, available only to know your customer (KYC)-approved entities to ensure regulatory compliance, guard against money laundering, and control the issuance and redemption of fiat-backed assets. Retail users cannot mint or redeem directly and, instead, must rely on exchanges or fintech platforms for fiat on- and off-ramps. Beyond peg maintenance, mint/redeem functionality also: Expands stablecoin distribution to new chains, supporting their liquidity. Provides regulated fiat access for large institutions, facilitating fiat entry/exit. The table below outlines the mint/redeem differences among USDC, USDT, and PYUSD: Price Stability/Arbitrage Direct Redemption Eligibility (KYC) Direct Retail Fiat On/Off-Ramps? Fees To Mint Fees To Redeem Minimum Mint/Redeem Amount USDC (Circle) ✔️ Whitelisted Institutions (KYC Required) No- Retail On/Off-Ramps Via Third Parties (exchanges, fintech partners) No Issuer Mint Fee (possible bank wire costs) Basic Redemption: 0%, All Standard Redemption: 0.05%, $/€ 2M - $/€ 25M Institutional Redemption: 0.05%, All None USDT (Tether) ✔️ Whitelisted Institutions (KYC Required) No- Retail On/Off-Ramps Via Third Parties (exchanges, fintech partners) No Issuer Mint Fee (possible bank wire costs) >$1,000 USD or 0.1% (fees are subject to change at the discretion of Tether) $100,000 USD PYUSD (Paxos) ✔️ Whitelisted Institutions (KYC Required) No- Retail On/Off-Ramps Via Third Parties (exchanges, fintech partners) No Issuer Mint Fee (possible bank wire costs) No Redemption Fee For Conversion Or Protocol Use Not Disclosed (varies by entity and size) Source: ARK Investment Management, based on data from Tether, Circle, and Paxos, data as of December 31, 2025. 18 For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security or cryptocurrency. While all three stablecoins use the same model for peg enforcement, they differ in fee structures, minimum thresholds, and access models. Circle, for example, has a tiered redemption fee system to accommodate the variety of its developer base, whereas Tether charges a flat fee with a minimum redemption, and with a 0% redemption fee, Paxos is trying to drive adoption, liquidity, and platform integrations. Importantly, even though the table above reflects publicly disclosed fee schedules and eligibility criteria, minting and redemption terms are not universally applied across all entities and may differ depending on bilateral agreements, volume tiers, or other negotiated arrangements with approved institutional counterparties. Sovereignty Governance The governance of majority fiat-backed stablecoins is issuer-driven and centralized. Circle (USDC), Tether (USDT), and Paxos/PayPal (PYUSD) control their infrastructure, smart contracts, and all upgrade decisions. This structure enables rapid iteration and regulatory alignment but depends upon the issuer’s integrity and judgment. Compliance Major issuers of fiat-backed stablecoins have satisfied regulators with robust compliance frameworks. As delineated in the GENIUS Act, sections 4(a)(6)(b) and 2(16)((A)), 19 US regulators require each issuer to embed freeze functionality in its stablecoin token contract and enable immediate intervention when required. With subpoenas or sanctions, regulators can mandate freezes or seizures, or burn stablecoin payments. Token transfers are traceable onchain, and parties wishing to interact directly with USDC, USDT, or PYUSD - whether minting, burning, or accessing advanced features - must complete KYC verification. Additionally, the fiat reserves backing these stablecoins, typically cash and short-term U.S. Treasuries, fall under anti-money laundering (AML) requirements and the Bank Secrecy Act. 20 This regulatory oversight limits user privacy and censorship resistance significantly. Interestingly, regulatory positioning is not a strong indicator of how actively a stablecoin issuer undertakes actions to assist US regulatory agencies, as Tether froze ~30x more USDT between 2023 and 2025 than Circle did USDC. 21 Despite USDT’s offshore positioning and Circle’s US-regulated operations, Tether froze ~$3.3 billion worth of assets throughout this period, while Circle froze ~$109 million of assets. 22 The variation stems from a difference in regional operations and approach, as 53% of Tether’s frozen USDT was on the Tron network, and 38% of blacklisted addresses were handled in coordination with US law enforcement. 23 Circle takes a more conservative approach, with a marginal USDC supply on Tron and only freezing USDC under court or regulatory orders. 24 Accessibility Liquidity The scale of a stablecoin plays an important role in its accessibility. As noted earlier, deep or thin liquidity can impact exchange- or ecosystem-specific risk. Based on the blockchain networks that host over $1 billion of a stablecoin’s supply, USDC meets that threshold on the six major networks hosting strong DeFi ecosystems. While more abundant, USDT meets the threshold on five major networks. Most of USDT’s supply is on Ethereum (ETH-USD) and Tron (TRON-USD), Tron highlighting USDT’s dominance in the global south. PYUSD, which has not hit escape velocity, has surpassed the billion-dollar mark only on Ethereum, fluctuating above and below the 1 billion mark on Solana. Source: ARK Investment Management, based on data from Artemis and Nansen Wallet, data as of December 31, 2025. 25 For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security or cryptocurrency. Note: Data from onchain providers may be over or understated depending on the wallet clustering methodology of the provider. Data marked with “*” refers to data obtained from onchain wallet clustering methods. “CEX” = Centralized Crypto Exchange. “DEX” = Decentralized Crypto Exchange. Source: ARK Investment Management, based on data from OKX, Kraken, Binance, ByBit, Pancakeswap (CAKE-USD), and Uniswap (UNI-USD) as of December 31, 2025. 26 For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security or cryptocurrency. Exchange balances indicate the venues on which users are trading tokens and also signal the existence of accessible on/off-ramps, as shown in the “Stablecoin Supply Across Top CEXs and DEXs” table above. USDT dominates the Asian CEXs (Binance, OKX, and ByBit), while USDC dominates on Coinbase (COIN) and Kraken (KRAKEN). PYUSD’s exchange liquidity is nascent, in line with trader demand. Integrations While users can access most stablecoins through the majority of blockchains and exchanges, access to majority fiat-backed stablecoins requires native on-chain integrations to support smart contract networks that provide mint/redeem and other core functionality. New integrations often require networks to onboard stablecoins and pay distribution fees. Listed below are the blockchains with native issuance for each of the stablecoins. Stablecoin (Issuer) Number of Blockchains Blockchains With Native Issuance USDC (Circle) 32 Algorand (ALGO-USD), Aptos (APT-USD), Arbitrum, Avalanche (AVAX-USD), Base, Celo (CELO-USD), Codex, edgeX, Ethereum, Hedera (HBAR-USD), HyperEVM, Ink (INK-USD), Linea, Monad, Morph (MORPH-USD), Near (NEAR-USD), Noble, Optimism (OP-USD), Plume (PLUME-USD), Polkadot (DOT-USD), Polygon (MATIC-USD), Sei (SEI-USD), Solana (SOL-USD), Sonic (SONIC-USD), Starknet, Stellar (XLM-USD), Sui (SUI-USD), Unichain, Worldchain, XDC Network, XRP Ledger, zkSync USDT (Tether) 12 Aptos, Avalanche, Celo, Cosmos, Ethereum, Kaia, Liquid Network, Polkadot, Solana, Tezos (XTZ-USD), TON, Tron PYUSD (Paxos) 4 Ethereum, Solana, Arbitrum, Stellar Note: Integration refers to access to the core developer API set of the issuer natively, on the blockchain. Source: ARK Investment Management, based on data from Tether, Circle and Paxos as of December 31, 2025. 27 For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security or cryptocurrency. USDC is the most widely available by network integration, but USDT and PYUSD, while less natively integrated, outsource to LayerZero’s OFT (Omnichain Fungible Token) for cross-chain functionality. 28 Incentives Yield and Incentives The most significant source of revenue generated by these majority fiat-backed stablecoins is the yield earned on their Treasury reserves, which, in turn, relies heavily on interest rate projections. Historically, stablecoin issuers have not passed the yield on to token holders because of securities law-related regulations that the GENIUS Act crystallized in Section 4(a). 29 While stablecoin issuers cannot return any of the yield they earn to holders, they can participate in exogenous opportunities to return yield through separate products or partners. The situation is a point of contention in the construction of crypto market structure legislation, however, and it remains to be seen if this feature will persist. Coinbase’s rewards program, which pays users ~3.5% 30 to hold USDC on its platform, is the most notable example. Additionally, users can redeploy their tokens in yield-bearing products through Decentralized Finance ((DEFI)) protocols or CeFi (Centralized Finance) products. Conclusion While they are the least aligned with crypto-native properties like censorship resistance and decentralization, fiat-backed stablecoins are the most durable, liquid, and trusted type of stablecoin. Their centralized architecture and regulatory alignment have legitimized blockchain-based finance beyond the crypto ecosystem, while their liquidity and resilience have contributed to the growth and stability of DeFi. Although the fiat-backed model offers less room for innovation, variations in distribution, custody, and oversight should allow issuers to differentiate their products and carve out distinct niches. With the passage of the GENIUS Act, fiat-backed stablecoins should be positioned for strong growth, especially as major financial and technology companies accelerate their entry into the space. Parts III and IV of our Stablecoin Guide will explore multi-collateral and synthetic-dollar models, alternatives that aim to achieve price stability without compromising as much on decentralization, censorship resistance, and control. Important Information Stablecoins aim to maintain a stable value, but they are not risk-free. Their value and stability depend on the issuer’s reserves, governance, and market conditions. Factors such as reserve mismanagement, regulatory changes, technical vulnerabilities, or loss of market confidence may cause a stablecoin to lose its peg or become illiquid. Users should conduct their own research, understand the underlying mechanisms and risks, and not rely on stablecoins as a guaranteed store of value. Glossary of Terms “DeFi” or decentralized finance is an emerging financial system using blockchain and cryptocurrencies to enable direct transactions between individuals and businesses. “CeFi” or centralized finance refers to financial services and platforms provided by centralized entities, such as banks and exchanges, that manage user accounts and transactions. Fiat currency is a type of government-issued currency, authorized by government regulation to be legal tender. The U.S. dollar is an example of fiat currency. Artemis Analytics. 2025. “Stablecoin Overview.” Tether. 2025. “Relevant Information Document.” See also Tether. 2026. “Transparency.” Circle. 2026. “Transparency & stability.” Paxos. 2026. “PayPal USD Attestations.” Stablecoin Insider. 2025. “Is PYUSD regulated by U.S. financial authorities?” Uquid. 2025. “Uquid. TRON Report.” Elad, B. 2025. “TRON Statistics 2026: Users, DeFi, Stablecoins & More.” CoinLaw. Tether. 2025. “Relevant Information Document.” Tether. 2025. “Tether Licensed in El Salvador, Strengthening Focus on Emerging Markets and Innovation.” Tether. 2025. “Relevant Information Document.” See also Aave. 2023. “[ARFC] PYUSD Reserve Configuration Update & Incentive Campaign.” BlackRock. 2026. “Circle Reserve Fund.” Rwa.xyz. 2026. “Stablecoins.” Circle. 2026. “Is Circle Mint right for your business?” BlackRock. 2026. “Circle Reserve Fund.” Uquid. 2025. “Uquid. TRON Report.” U.S. Office of the Comptroller of the Currency. 2025. “OCC Announces Conditional Approvals for Five National Trust Bank Charter Applications.” BlackRock. 2026. “Circle Reserve Fund.” Aave. 2023. “[ARFC] PYUSD Reserve Configuration Update & Incentive Campaign.” Khei, L.C. and V. Lim. 2026. “What Is October 10th? Crypto's 10/10 Mass Market Liquidation Event.” Coingecko. “Perpetual futures” are a derivatives product that allows a user to take leveraged long or short exposure to an underlying asset without an expiration date. The mechanism uses a periodic funding rate to keep the contract price aligned with the underlying spot price. Haseeb. 2025. “Did Ethena Really Depeg?...” X. Ibid. Tether. 2025. “Relevant Information Document.” Circle. 2026. “Is Circle Mint right for your business?” Circle. 2026. “USDC/ EURC redemption structure.” Paxos. 2026. “PYUSD Overview.” Paxos. 2024. “5 Key Facts About PYUSD.” Paxos. 2025. “FIat USD Deposit & Withdrawal Fees.” Congress.Gov. 2025-2026. “S.1582 - GENIUS Act.” Latham & Watkins LLP. 2025. “The GENIUS Act of 2025: Stablecoin Legislation Adopted in the US.” AMLBot. 2025. “Stablecoin Freezes 2023–2025: A Data-Backed Analysis of USDT vs USDC by AMLBot.” See also Khei, L.C. and V. Lim. 2026. “What Is October 10th? Crypto's 10/10 Mass Market Liquidation Event.” Coingecko. Ibid. Ibid. Ibid. Artemis Analytics. 2025. “Stablecoin Overview.” See also Nansen Wallet. 2026. “What Did Smart Money Trade Today?” OKX. 2026. “OKX Reserve Ratios.” Kraken. 2026. “Proof of Reserves.” Binance. 2026. “Proof of Reserves.” ByBit. 2026. “Proof of Reserves.” Pancakeswap. 2026. “All Tokens.” Uniswap. 2026. “Tokens.” Circle. 2026. “Experience the Power of Multichain USDC.” Circle. 2026. “Transparency & stability.” Paxos. 2026. “PayPal USD Attestations.” Layer Zero. 2026. “OFTs.” Congress.Gov. 2025-2026. “S.1582 - GENIUS Act.” Coinbase. 2025. “Introducing USDC.” Disclosures ARK's statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. For a list of all purchases and sales made by ARK for client accounts during the past year that could be considered by the SEC as recommendations, click here . 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19 Mar 2026, 07:28

PayPal Brings PYUSD Stablecoin Access to 70 Markets

PayPal extended its PYUSD stablecoin to 70 markets on 17 March 2026. The token was previously available only to users in the US and UK.

18 Mar 2026, 14:41

PayPal USD Expansion Signals Stablecoins Entering Mainstream Payment Systems