Welcome to another edition of the Money Code newsletter (fka The Weekly Stable), the essential source of stablecoin news coverage for global fintech professionals, brought to you by This Week in Fintech and Stablecon.
This week we cover:
Circle launches CPN Managed Payments, bundling issuance, compliance, and settlement into a single managed service
Polymarket issues its own USDC-backed collateral token to capture reserve yield
Six Swiss banks launch a joint CHF stablecoin sandbox
Product launches, partnerships and funding news from Polygon Labs, UBS, FDIC, US Treasury, JPMorgan, Chainalysis, Coinbase and more.
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🏆 Top Stories
Circle Launches CPN Managed Payments, a Full-Stack Stablecoin Settlement Platform
Circle launched CPN Managed Payments, a fully managed stablecoin settlement service that lets PSPs, fintechs, banks, and global enterprises settle in USDC without touching digital assets. Partners interact in fiat while Circle handles minting, burning, compliance, custody, and blockchain infrastructure. The platform connects to Circle Payments Network's fiat payout corridors and supports pay-ins and payouts across 20+ blockchains and domestic payment rails. Launch partners include Thunes, Worldline, and Veem.
Why it matters:
Circle already had the building blocks: Mint, Wallets, CCTP, payout APIs. But institutions had to assemble and manage them on their own. CPN Managed Payments bundles the stack into a single managed service, turning Circle into a full-stack payment infrastructure provider. Financial institutions that want stablecoin settlement but face barriers around custody, licensing, and blockchain operations can now skip the integration work.
Licensing as a service. Partners leverage Circle's money transmission licenses and compliance framework for the digital asset layer. They never need to hold or custody USDC. Fintechs and PSPs that can't justify the cost and timeline of their own crypto licensing get a fast lane to stablecoin settlement. Partners still maintain their own fiat-side regulatory obligations.
Blockchain complexity, abstracted. Circle handles wallets, keys, and on-chain operations. Partners send fiat, receive fiat. Firms can now participate in the stablecoin economy without having to touch stablecoins. This is how we get institutional adoption: by reducing the friction.
CPN connectivity means built-in global reach. Managed Payments sits on top of Circle Payments Network, giving customers access to CPN's fiat payout corridors across multiple countries out of the box. Launch partner Thunes, whose network reaches 12 billion mobile wallets and bank accounts across 140 countries, has been using USDC for settlement since 2024. Real-time treasury funding and cross-border settlement without pre-funding dormant accounts in every corridor.
A direct competitor to stablecoin orchestrators. CPN Managed Payments supports both pay-ins and payouts, the same core flows that orchestrators like Bridge (Stripe) and BVNK (Mastercard) provide. Orchestrators aggregate on top of someone else's stablecoins and can support multiple assets. Circle controls the USDC lifecycle end-to-end, cutting out a layer of intermediation. The trade-off: Managed Payments is USDC-only at launch, which limits reach in markets where USDT dominates liquidity.
Polymarket Launches USDC-Backed Collateral Token in Full Exchange Overhaul
Polymarket announced its biggest infrastructure upgrade since launch: a proprietary collateral token called Polymarket USD, backed 1:1 by Circle's USDC, replacing the bridged USDC.e the platform uses today. The upgrade also includes rebuilt smart contracts (CTF Exchange V2), a new central limit order book, and EIP-1271 support for smart contract wallets.
Why it matters:
Polymarket processes $10B in monthly volume and holds ~$410M in TVL. At that scale, who controls the collateral layer controls the economics. By issuing its own USDC-backed token, Polymarket is doing what any platform with enough leverage would do: capturing the yield on its own float.
Reserve yield capture. Circle earns ~3.6% on the reserves backing USDC and has an established pattern of sharing that yield with platforms that hold large balances. With $410M in TVL and $10B in monthly volume, Polymarket has the scale to negotiate similar terms. The exact arrangement hasn't been disclosed, but the incentive structure is clear.
Polymarket is already in the yield business. The platform pays 4% annualized holding rewards on eligible market positions. Wrapping user deposits into Polymarket USD and earning reserve yield on the backing USDC could offset some or all of that cost, turning a pure expense into a funded program.
Distributors earn more than issuers. Circle's S-1 revealed that it paid $461M in distribution costs in Q1 2025, most of it to Coinbase. The economics of stablecoin issuance reward the distributor, not the issuer. Any platform with enough users and locked capital can negotiate a share of the yield. Polymarket won't be the last.
Infrastructure independence. Beyond yield, this is a risk reduction play. Bridged USDC.e depends on Polygon's bridge infrastructure. Polymarket USD gives the platform direct control over its settlement layer. With CFTC registration and ICE's backing, Polymarket is building for a regulated U.S. market where bridge dependencies are unacceptable.
Six Swiss Banks Launch Joint CHF Stablecoin Sandbox
UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, and BCV have joined forces with Swiss Stablecoin AG to launch a CHF stablecoin sandbox. The controlled live environment will test use cases for a digital franc under realistic conditions with transaction limits and a limited participant pool. Technical infrastructure comes from Swiss Stablecoin AG. The sandbox runs through 2026 and is open to additional banks and institutions. No regulated CHF stablecoin with broad application exists in Switzerland today.
Why it matters:
This is the latest in a wave of bank consortiums building stablecoins and tokenized deposit systems. Qivalis, a joint venture of 11 European banks including ING, UniCredit, BBVA, and BNP Paribas, is launching a MiCAR-compliant euro stablecoin in H2 2026. Six UK banks are piloting tokenized sterling deposits. Five US regional banks formed the Cari Network for a shared deposit token. Japan's three largest banks are working on a joint yen stablecoin. Banks are moving together because stablecoins need fiat liquidity and banking connectivity to function at scale, and the regulatory burden is too large for any one institution.
Banks own the fiat connectivity layer. Stablecoins need on-ramps, off-ramps, and liquidity in local currency. A CHF stablecoin issued by six Swiss banks with direct access to the Swiss payment system starts with distribution and trust baked in from day one.
Switzerland's AML regime is the bottleneck. Swiss regulations require identification of every stablecoin holder, one of the most restrictive regimes in the world for digital currencies. That's why no CHF stablecoin has gained traction. The sandbox is how these banks test whether broad distribution is viable under those constraints.
Non-USD stablecoins are growing but still marginal. Total non-USD stablecoin supply has crossed $1.2B with $10B in monthly transfer volume, but that's 0.4% of the $295B stablecoin market. Euro stablecoins account for 84% of that, with CHF at just $41M. Holding addresses have crossed 1.2M and are rising. The bet these consortiums are making: regulatory clarity and bank-backed trust will close the gap that scale alone hasn't.
📺 Money Code Podcast
Ep 27: What Stablecoins Actually Fix in Cross-Border Payments w/ Rowland Berry (Payoneer)
Stablecoins promise faster, cheaper cross-border payments. After 18 months of testing that claim against real customer corridors, the answer is: sometimes.
Rowland Berry runs strategic partnerships at Payoneer, where he spent the last year and a half evaluating every corner of the stablecoin space before launching with Bridge and filing for an OCC trust charter to issue PAYO-USD. He walks through what held up and what didn't.
We decode
The off-ramp gap: why stablecoin speed breaks down at the last mile, and what 20 years of fiat rail-building has to do with it
PAYO-USD as closed loop: how Payoneer plans to issue, hold, and burn a token inside existing wallet flows without customers managing keys or changing platforms
The unhappy flow problem: why returns, balance sheet treatment, and payment tracking are where stablecoin integration gets painful
Give it a listen and share your feedback by sending me a DM or replying to this email.
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Read on for a round up of this week's news:
📊 Market Trends
Chainalysis report projects stablecoin volumes could hit $1.5 quadrillion by 2035, rivaling Visa and Mastercard (read more)
Crypto card boom hits $600 million monthly volume as USDC gains ground on USDT (read more)
JPMorgan to Standard Chartered: finance giants forecast up to $30T in tokenized assets by 2030 (read more)
Jamie Dimon says JPMorgan must move faster as tokenization reshapes finance (read more)
💸 Fundraises and M&A
Polygon Labs seeking to raise up to $100 million for stablecoin payments business (read more)
🚀 Product Announcements & Partnerships
Canton Network and Transcend bring collateral mobility on-chain (read more)
Circle rolls out USDC payments platform that lets users pay without holding stablecoins (read more)
Hyperbeat launches full-stack onchain banking experience on Hyperliquid (read more)
Merge launches named Euro IBANs to power scalable fiat–stablecoin payment infrastructure (read more)
Polymarket to launch 1:1 USDC-backed crypto collateral token (read more)
UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, BCV and Swiss Stablecoin AG launch joint CHF stablecoin sandbox (read more)
⚖️ Regulatory Developments
Bank of Canada publishes report on Aave and DeFi lending (read more)
Coinbase becomes latest crypto company to get conditional US approval for a trust charter (read more)
Crypto market structure bill release pushed back as industries view revised stablecoin yield compromise (read more)
FDIC proposes ruleset for stablecoin issuers following GENIUS enactment (read more)
IMF warns tokenization could bring crypto risks into global financial markets (read more)
South Korea proposes cryptocurrency law with bank-style rules for stablecoins (read more)
US Treasury unveils proposed stablecoin rules targeting money laundering and sanctions (read more)
White House study bolsters crypto's stance in stablecoin yield fight against bankers (read more)
World Liberty Financial faces scrutiny over ties to sanctioned network (read more)
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📖 Reads of the Week
Luca Prosperi kicks off a series on on-chain lending with The Physics of On-Chain Lending, using Morpho's rise to $11B in deposits as the lens.
The piece traces how DeFi lending evolved from simple overcollateralized pools to Morpho's isolated market + vault + curator architecture, and where it breaks down: the sUSDe looping tower that drove a material share of TVL was a textbook case of composability doubling as hidden leverage.
With Apollo acquiring 9% of MORPHO tokens and Morpho v2 pushing toward fixed-rate, fixed-term institutional lending, the piece asks whether DeFi can introduce the predictability institutions need without giving up the permissionless properties that made it work in the first place. Worth reading for anyone watching stablecoin yield markets and institutional DeFi adoption.
