SS #46 - UK Rushes Stablecoin Rules

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Good morning.

November has commenced with a significant pivot in global stablecoin regulation, shifting the dominant narrative back to the West following last month's focus on launches across Asia. The regulatory race is undeniably intensifying.

The Bank of England (BOE) is aggressively moving to establish its oversight framework, with Deputy Governor Sarah Breeden aiming for the UK regime to be operational "just as quickly as the U.S." This push culminates in the release of the central bank's stablecoin regulation consultation on November 10th, a clear effort to dismiss any perception of the UK falling behind major financial jurisdictions.

Meanwhile, Canada has formally joined the regulatory wave. Its recent federal budget for 2025 unveiled plans for new legislation governing fiat-pegged stablecoins. Key requirements will compel issuers to maintain adequate reserves, establish clear redemption policies, implement risk management frameworks, and safeguard personal information.

The clear takeaway is that global financial authorities are rapidly advancing their timelines. This period marks the beginning of a truly hectic, but necessary, regulatory season for stablecoins. Rest assured, here at Stablescope, we will continue to provide the concise, critical analysis you need to navigate every development.

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In Today's Edition:

• Headline: UK Rushes Stablecoin Rules

• Quick Bites: Canada Unveils Upcoming Stablecoin Legislation in Federal Budget

• Yield of the Week: 14.5% APY on Noon

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TOGETHER WITH

Neutrl Officially Launch to Public on Monday, November 10

Get ready: the long-awaited moment is finally here. Neutrl officially opens its platform to everyone on Monday, November 10th.

Neturl recent pre-deposit phase saw overwhelming demand, filling up completely in just over an hour with a total of $75M deposited.

For this public launch, Neutrl is introducing Neutrl Points, which can be earned through several key activities:

• Holding NUSD

• Staking NUSD to receive sNUSD

• Committing NUSD or sNUSD for fixed lock durations

• Providing liquidity on Curve

• Supplying NUSD/sNUSD as collateral across approved DeFi venues

The system includes a base multiplier with optional boosts for longer lock periods. The longer you commit your assets, the higher your boost and the more Neutrl Points you earn.

Note: Participants in the pre-deposit vault have already been accruing points since the day they made their initial deposit.

The public launch has arrived for everyone who missed the initial pre-deposit. Follow Neutrl now for the next steps and future opportunities!

HEADLINE

UK Rushes Stablecoin Rules

State of play: The Bank of England (BOE) is accelerating the release of its comprehensive stablecoin regulatory framework, aiming to be operational as quickly as the U.S.

• The BOE will release its stablecoin regulation consultation on November 10th, aiming to dismiss concerns that the UK is lagging behind other major financial jurisdictions.

• The new rules will implement a tiered approach, initially applying only to "systemic" stablecoins (those widely used for payments), leaving smaller ones under the Financial Conduct Authority (FCA).

• The forthcoming proposals include temporary holding caps of £20,000 for individuals and £10M for businesses, implemented to mitigate the risk of mass deposit shifts from the bank-based UK mortgage market.

What’s Next: Major issuers will intensely lobby the BOE on "systemic" criteria and holding limits. Expect a surge in compliance hiring in the UK by stablecoin projects. The tiered model will pressure the EU to finalize its MiCA implementation and set a high bar for global regulatory standards.

Why it Matters: This move legitimizes stablecoins as regulated payment instruments in a major G7 economy, fostering trust and stability. It provides a compliant channel for institutional adoption, balancing blockchain efficiency with banking system protection by mitigating systemic risk from deposit flight.

Our Take: The caps favor large, institutional stablecoin issuers who can meet the rigorous "systemic" requirements, creating a barrier to entry for smaller retail projects. We advise focusing on RWA and compliance infrastructure built for this regulated tier; the UK is signaling its future as a hub for institutional digital finance, not purely retail crypto.

QUICK BITES

• Zynk raises $5M.

• Canada unveils upcoming stablecoin legislation in federal budget.

• Ripple’s RLUSD to power Mastercard credit card settlements on XRP ledger.

• Coinbase urges Treasury to keep GENIUS Act rules aligned with congressional intent.

• Analysts map $285M in potential exposure across DeFi after Stream Finance's $93M loss.

YIELD OF THE WEEK

Noon sUSN: 14.5% APY

• Noon launches USN, which can be staked on the Noon dApp to mint a corresponding liquid staking token, sUSN, which can also be acquired or liquidated via DEX pools.

• Each sUSN token is fully and transparently backed by the pool of USN held in the staking smart contract, with its value appreciating as protocol returns in the form of USN are regularly added to the backing pool.

• Holders of sUSN are entitled to 80% of the protocol's raw returns, plus a proportional share of the $NOON governance token; however, exiting the position via unstaking on the dApp is subject to a mandatory cooldown period.

Cap stcUSD: 10.04% APY

• Cap’s stcUSD functions as a permissionless, yield-bearing savings asset derived from staking cUSD, with its yield generated through an autonomous network of decentralized operators.

• Protocol yield is generated by operators who self-select based on the asset's hurdle rate through a decentralized lending framework, and the risk of this yield generation is fully covered to provide verifiable downside protection for stcUSD holders.

• Operator borrowing from Cap's reserves is always over-collateralized by Delegators; any resulting under-collateralization triggers the slashing of Delegator funds, which are then used to maintain the 1:1 backing of cUSD for stablecoin holders.

infiniFi Lock: 12.54%-14.3% APY

• infiniFi is introducing a novel fractional reserve token staking system designed to leverage blockchain and decentralized governance to align participant incentives and enhance financial stability.

• The protocol permits locking various stablecoins and Principal Tokens (PT) for flexible durations ranging from one to thirteen weeks, with the system structured to reward longer locking periods with a progressively higher APY.

• All earnings accrued from the token locking mechanisms are denominated and paid out to users in the platform's native token, iUSD.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.