1、 AUGUST 2025 The Road to Crypto Regulation Part 2:Stablecoins at the Crossroads of Financial Services and Crypto Paving the way to new financial rails The trajectory of stablecoins cryptocurrencies whose value is pegged to another asset,most commonly a fiat currency is at an inflection point.Already

2、,stablecoins account for trillions of dollars in on-chain value transferred each month.But the broadening interest in this asset stems not from their foundational role in crypto markets,but from their potential to solve persistent real-world inefficiencies.Today,cross-border payments remain slow,cos

3、tly,and exclusionary especially for the most vulnerable populations.Financial markets,meanwhile,continue to be held back by fragmented trading and settlement infrastructure,a lack of interoperability across systems,and a reliance on manual processes.Programmable and intrinsically borderless,stableco

4、ins offer an opportunity to make finance work better for consumers and businesses through streamlined settlement,reduced reliance on legacy intermediaries,and lower transaction costs.More broadly,they are emerging as foundational infrastructure for next-generation financial products,from on-chain re

5、po markets to programmable treasury instruments.Its unsurprising,then,that interest from both crypto-native and traditional financial businesses has been accelerating(see timeline on next page).The Road to Crypto Regulation(Part 2)1 The Road to Crypto Regulation(Part 2)2 Regulation will chart the co

6、urse for the next phase of stablecoin markets Economic incentives have shaped todays stablecoin landscape.Within digital asset markets,adoption has been driven by the need for trading and hedging instruments.Beyond these markets,stablecoins have gained traction where they help address financial acce