Everyone Gets a Stablecoin!

yyc trader & Camila Russo
August 22, 2025

gm, Defiers!

Today’s big story:

Everyone can have their open stablecoin now… but should they? We risk crypto making finance more complex and fragmented, the opposite of what it was supposed to do.

In other news:

Crypto markets rally after Powell hints at potential rate cuts
Morpho token surges after deposits cross $10B
Libra token is surging after frozen stablecoins were released
Bitcoin treasury companies are buying less BTC
Confidentiality in blockchain: Rand Hindi on Zama's Vision and the future of on-chain transactions [SPONSORED]
TezDev highlights: blockchain innovation, gaming, and real-world impact [SPONSORED]
Using AI for developer education | RareCode by RareSkills [SPONSORED]

Read more below! But first, please give our sponsors some love; they make this newsletter possible.

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TezDev showcased the latest in blockchain innovation, highlighting key advancements and real-world applications. Discussions covered why roll-ups are emerging as the preferred scaling solution over L1s, the transformative potential of real-world asset tokenization, and how gaming is driving blockchain adoption. The event also featured the unveiling of Reaper Actual, a new game exclusive to Etherlink, and explored Tezos’ role in fostering true decentralization, NFT art, and scalable solutions. With insights into liquidity optimization, off-chain compute, and the future of Web3, TezDev brought together builders and visionaries shaping the next wave of blockchain technology.

Watch the full highlights of TezDev here

We’re back! Here’s what you need to know in web3 today

📈 Markets in the Last 24 Hours

TICKER	VALUE	24H
Bitcoin	$116,711	3.77 %
Ethereum	$4,816.35	13.32 %
XRP	$3.08	7.34 %
BNB	$895.29	6.41 %
Solana	$199.21	9.77 %

MessariPortals	MINDSHARE Rank	MINDSHARE % Change (7d)
		21.48%
		62.96%
		-50.77%
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Today’s Big Story

The Balkanization of Stablecoins

Stablecoins continue accelerating into institutional scale, with Goldman Sachs now saying that by the end of the decade, stablecoins could rival what money-market funds were in the 1980s, and reaching multi-trillion-dollar scale.

Recent launches and expansions in tokenizations and railings underscore the non-stop proliferation of competing frameworks.

PayPal’s PYUSD is now an option for settlement for merchants accepting payments in crypto in their network.
Stripe’s Tempo L1 is being positioned as the settlement layer across its global acquiring network.
Circle’s Arc, a proprietary L1 EVM chain, is designed to make USDC the canonical institutional settlement asset within its own ecosystem.
Tether’s “Plasma” and “Stable Tether” chains mark its push to deepen on-chain distribution and U.S. market integration
MetaMask’s mUSD, issued natively on Ethereum mainnet and Consensys Linea, introduces a self-custodial narrative to the increasingly centralized stablecoins narratives, and strong ties to the DeFi crowd.

These days it seems like, nearly everyone in finance has joined the stablecoin rails or tokenization bandwagon (either live, piloted, or in‑flight announcements). The tally now includes Visa, Mastercard, Fiserv, FIS, Adyen, Worldpay, JPMorgan, Citi, BNY Mellon, State Street, Fidelity, Charles Schwab, … even the State of Wyoming now has its own.

The result is a balkanizing landscape: dozens of issuers, multiple proprietary L1s/L2s, and inconsistent attestation regimes. Without strong interoperability standards (cross‑chain messaging, canonical bridges, harmonized compliance) and shared liquidity venues, we risk scattering dollars into shallow pools—raising slippage, custody friction, and compliance overhead—the opposite of what “internet money” promised.

This take was originally published on The Defiant’s Real World weekly newsletter. Subscribe today to read the rest of this analysis, and so you don’t miss the next one!

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🎬WATCH

Filecoin’s Role in Decentralized AI and Data Sovereignty | Marta Belcher

In the latest episode of The Defiant Podcast, we’re joined by Marta Belcher, President and Chair of the Filecoin Foundation, to dive deep into the transformative potential of decentralized storage and its role in shaping the future of technology.

Marta shares her insights on how Filecoin is enabling decentralized AI, preserving humanity’s most important data, and creating alternatives to big tech. The conversation also covers the challenges and opportunities of governance in decentralized systems, the evolving regulatory landscape for crypto in the U.S., and the pivotal role of the market structure bill.

From Digital Gold to Everyday Finance: Matt Luongo On How Bitcoin is Growing Up [SPONSORED]

In this episode of Defiant Voices, Matt Luongo, founder of Thesis, dives into Bitcoin's evolution and its growing acceptance within traditional finance. Matt explores how Bitcoin has matured from being seen as a "boomer coin" to a widely accepted "digital gold" and how its utility is shifting toward practical, real-world applications.

Discover how innovations like Mezo are enabling new ways to use Bitcoin, such as Bitcoin-backed mortgages and stablecoins, which play a crucial role in lending. Matt also discusses the importance of security in Bitcoin systems, the demand for fixed rates and low borrowing costs, and how acquisitions like Lolli aim to expand Bitcoin's utility globally.

Top News in the Past 24 Hours

ETH Nears $4,800 as Powell Hints at Potential Fed Rate Cuts Cryptocurrencies rallied after Federal Reserve Chair Jerome Powell’s dovish tone at the Jackson Hole Symposium, which traders interpreted as signaling interest-rate cuts may be coming. Ethereum (ETH) led the charge, crossing $4,800, less than 2% away from its all-time high. Why it matters: Powell’s remarks marked a clear shift in monetary policy expectations with traders now pricing in a possible rate cut as early as September.
Morpho Token Surges as Lending Protocol Eclipses $10 Billion in Deposits Morpho hit a milestone this month, surpassing $10 billion in total deposits. Its other key metrics are shining too: active loans reached a record $3.5 billion, and TVL (total value locked) soared to a new high of $6.7 billion. The MORPHO token is trading near a six-month peak, up 20% today and rallying nearly 50% over the past 30 days. Why it matters: This surge underscores robust confidence in DeFi lending platforms and reflects broader optimism in the crypto space.
Libra Token Soars After $57.6 Million in Frozen Stablecoins Are Released The controversial Libra token, promoted by Argentina’s President Javier Milei, spiked by more than 100% over the past week after a U.S. court lifted the freeze on $57.6 million in USDC tied to a memecoin-related lawsuit. Why it matters: The ruling could pave the way for Hayden Davis, the alleged scammer behind Libra, to regain access to capital—potentially leaving victims of the scheme with fewer avenues for restitution.
Bitcoin Treasury Companies Curb Their Enthusiasm as BTC Price Slips As Bitcoin (BTC) slid from about $124,000 to $113,426 this month, the number of publicly listed companies actively purchasing BTC has dropped sharply—falling from roughly four buyers per day in late June to 2.67 today. This metric, tracked by Capriole Investments, is drawing attention as an indicator of institutional demand weakening. Why it matters: A cooling of institutional buying could be an early warning signal of declining momentum in BTC demand. Coupled with $1.15 billion in spot BTC ETF outflows this week, this trend may point to growing caution among major players.