SS #48 - Singapore Regulates Stablecoins, Pilots CBDC

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Good morning.

The institutional adoption of digital assets is accelerating globally, led by major moves from both regulators and market leaders: the Monetary Authority of Singapore (MAS) is advancing a key digital finance agenda by planning to trial tokenized government bills settled with a wholesale Central Bank Digital Currency (CBDC) alongside imminent draft legislation to ensure sound reserve backing and redemption reliability for systemic stablecoins; concurrently, stablecoin issuer Circle underscored its market strength by reporting robust third-quarter earnings, including a year-over-year doubling of USDC in circulation and improved profitability, while also revealing it is exploring the possibility of a native token for its Arc blockchain to expand its infrastructure footprint.

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In Today's Edition:

• Headline: Singapore Regulates Stablecoins, Pilots CBDC

• Quick Bites: Circle Explores Native Token for Arc Network

• Yield of the Week: 41.97% APY on Coinshift

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TOGETHER WITH

Neutrl is Officially Live

gNeutrl!

The Neutrl stablecoin ecosystem is now open to the public, offering participation through its primary stablecoin, NUSD, and its staked version, sNUSD.

This public launch provides all users with access to institutional-grade Over-The-Counter (OTC) opportunities and proprietary order flow. This system unlocks the kind of asymmetric trading yield traditionally reserved for crypto elite, making it accessible to the retail community.

To celebrate this milestone, 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 points system features a robust base multiplier with significant boosts for longer commitment periods. The longer you lock your assets, the higher your boost, allowing you to earn more Neutrl Points. This multiplier can reach up to 40x with a maximum locking period of 12 months.

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

In response to recent stablecoin incidents, Neutrl has also proactively launched a transparency dashboard. Follow Neutrl now for the next steps and future opportunities!

HEADLINE

Singapore Regulates Stablecoins, Pilots CBDC

State of play: The Monetary Authority of Singapore (MAS) is advancing its digital finance agenda by planning a trial of tokenized bills settled with a wholesale Central Bank Digital Currency (CBDC) while simultaneously drafting new stablecoin regulation.

• MAS will test tokenized government debt (MAS bills) settled using a wholesale CBDC, aiming for robust and safe on-chain settlement for tokenized real-world assets (RWAs).

• Draft legislation for stablecoins is being prepared, prioritizing "sound reserve backing and redemption reliability" to ensure stability and public trust in systemic private settlement assets.

• This initiative marks the next phase of MAS's structured, multi-year effort (Project Guardian) to move tokenization from lab experimentation into scalable, commercially viable financial infrastructure.

What’s Next: The MAS will likely move the stablecoin regulatory draft into a public consultation phase next, attracting global issuers seeking a clear, high-standard jurisdiction for their operations.

Why it Matters: This legislation is crucial because it establishes a global precedent for legitimizing well-reserved stablecoins as a safe, regulated form of digital money, bolstering institutional confidence in the broader tokenized economy.

Our Take: Regulated stablecoin issuers must immediately align their reserve and governance structures with the MAS's high standards to capture first-mover advantage in serving institutional clients who prioritize regulatory certainty and stability.

QUICK BITES

• Sui launching USDsui stablecoin.

• Ark Invest buys $30M worth of Circle.

• JPMorgan upgrades target for Circle shares.

• Circle explores native token for Arc network.

• BNY eyes $1.5T stablecoin market with new reserve fund for issuers.

• Visa now supports stablecoin payouts for creators in new 'breakthrough' pilot.

• Standard Chartered, DCS partner to support stablecoin credit card in Singapore.

• A16z urges US Treasury to exempt decentralized stablecoins from GENIUS Act oversight.

• South Korea's NH NongHyup Bank pilots stablecoin-led tax refunds on Avalanche.

• Top Base DEX Aerodrome launches upgrade suite, expands to Ethereum and Circle’s Arc.

• Circle expands Arc ecosystem with onchain FX engine and multi-currency stablecoin partner program.

• Bernstein claims Circle's Q3 results show resilience despite rate cut fears and competition from 'frenemies'.

YIELD OF THE WEEK

Coinshift csUSDL: 41.97% APY

• csUSDL is a yield-bearing stablecoin that generates returns by combining real-world income from U.S. Treasury bills with on-chain lending yields facilitated through the Morpho Blue protocol.

• The token is built upon USDL, a stablecoin regulated by the FSRA and backed by Paxos International, yet it maintains self-custody and is permissionless, requiring no lockups, staking, KYC, or KYB for users to earn yield simply by holding the asset.

• To acquire csUSDL, users can utilize a wide variety of assets, ranging from other stablecoins to various crypto assets to execute the minting process.

Contango srUSD/USDC on Morpho: 12.5%-74.73% APY

• Contango introduces a vault that allows users to execute a highly leveraged looping strategy (up to 9.27x) on Morpho, using deposits of rUSD, srUSD, and USDC to amplify positions on the srUSD/USDC pair.

• Users who participate in this specific vault are incentivized with the accrual of two distinct rewards: Contango Points and Reservoir Points.

• Participation in the vault is subject to two types of transaction costs: a Flashloan fee, which covers the capital required for the looping execution, and a separate Service Fee charged to the user.

Drift Insurance Fund Vault USDC : 17.98% APY

• Drift's Insurance Fund serves as the primary defense against exchange insolvency and bankruptcies, structured with separate vaults for each deposited asset; it is financially sustained by a portion of the premium revenue collected from liquidation, trading, and borrowing/lending fees.

• Users can stake assets into these vaults to earn an hourly proportionate share of the Revenue Pool, with the reward calculation based on the Staked Amount relative to the Total Insurance Fund value, though only the USDC Vault receives fees from trading activity, while other asset vaults earn from borrow fees.

• To manage liquidity risk, all staking requests are subject to a mandatory 13-day cooldown period before the funds can be withdrawn, and participants are limited to having only one unstaking request active per vault at any given time.

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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.