SS #66 - Thailand Targets USDT Grey Money Flows

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From Southeast Asia to the world’s largest stablecoin, regulatory scrutiny is tightening. The Bank of Thailand (BOT) has officially placed Tether (USDT) under an active monitoring framework to disrupt "grey money" flows. This move follows reports that approximately 40% of USDT sellers on local platforms are non-residents. By shifting from "analysis to action," the BOT aims to prevent illicit capital movements from distorting the Thai baht and destabilizing the broader economy.

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In Today's Edition:

• Headline: Thailand Targets USDT Grey Money Flows

• Quick Bites: Visa Teams up With Bvnk to Launch Stablecoin Payouts

• Yield of the Week: 48.67% APY on Dolomite

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HEADLINE

Thailand Targets USDT Grey Money Flows

State of play: The Bank of Thailand (BOT) has officially placed Tether (USDT) under its active monitoring framework to disrupt "grey money" flows, following findings that roughly 40% of USDT sellers on local platforms are non-residents.

• Regulators identified that a significant portion of stablecoin activity involves foreign entities that are legally restricted from trading on domestic platforms.

• USDT is being bundled with gold, cash, and e-wallets into a centralized "Data Bureau" to track suspicious transactions in real-time.

• The BOT is shifting from "analysis to action" to prevent illicit capital flows from distorting the Thai baht and destabilizing the broader economy.

What’s Next: Expect a wave of mandatory account re-verifications on Thai exchanges as platforms move to flush out unauthorized foreign sellers. By late January 2026, the BOT is likely to issue specific transaction caps and stricter "Travel Rule" enforcement, potentially leading to a temporary dip in local USDT liquidity as "grey market" participants exit the system.

Why it Matters: This marks a pivotal shift in how central banks treat stablecoins, not just as digital assets, but as systemic financial tools that impact national currency stability. For the crypto community, it signals the end of "regulatory lag" in Southeast Asia; stablecoins are no longer flying under the radar and are now subject to the same scrutiny as the $15B-a-day foreign exchange market.

Our Take: The Bank of Thailand’s aggressive stance highlights a growing challenge for USDT: its popularity makes it a prime target for regulators seeking to "plug leaks" in traditional capital controls. While this crackdown may cause short-term friction for Thai traders, it serves as a professionalization milestone for the local industry.

QUICK BITES

• Visa teams up with BVNK to launch stablecoin payouts.

• Ripple secures preliminary EMI license approval in Luxembourg.

• South Korean financial giant KB files patent for stablecoin credit card.

• ClearBank taps crypto custody firm Taurus to power stablecoin services.

• Polygon Labs pushes deeper into stablecoin payments with $250M deal.

• Ripple injects $150M into LMAX to push RLUSD stablecoin for institutions.

• Pakistan signs MOU with World Liberty Financial to explore USD1 stablecoin.

• Miami’s crypto-settled real estate record broken by $14M USDT transaction.

• Societe Generale works with Swift to settle tokenize bonds using cash and stablecoins.

• JPMorgan CFO calls stablecoin yield payout 'obviously dangerous and undesirable'.

• Generic Protocol bets on private stablecoin model with GUSD launch as Congress battles over yield.

• Bank of America CEO warns up to $6T in deposits could shift to stablecoins if allowed to pay interest.

• Tether-backed mobile wallet Oobit adds native Phantom support, expanding Solana's ties to Visa.

• Ethena Labs looks to boost USDe Safe holdings with gas-free Ethereum transactions and 10x rewards bump.

YIELD OF THE WEEK

Dolomite Looped stcUSD: up to 48.67% APY

• Dolomite strategy involves a recursive "loop" where stcUSD is used as collateral to borrow further USD-pegged assets, which are then swapped back into stcUSD.

• Users can select their preferred debt asset from a pool including USDC, USD1, and cUSD to fund the leverage.

• Current parameters allow for leverage between 3x and 9x, with total yield determined by the specific stablecoin chosen for borrowing.

Hyperbeat USDT: 11.78% APY

• The Hyperbeat USDT vault functions as a single entry point for deploying USDT into the HyperEVM ecosystem to capture native yield and partner incentives.

• A 20% fee is applied to generated returns, with the final amount calculated based on the duration of the deposit.

• Participants are eligible for supplemental point distributions from integrated partners including Hypurrfi, Felix, Hyperlend, and Theo.

Fluid syrupUSDC-USDC: 12.72% APY

• Fluid enables users to loop the syrupUSDC-USDC pair with up to 10x leverage to enhance total returns.

• The protocol utilizes a 90% collateral factor, allowing for high loan-to-value positions.

• The strategy carries a 2% liquidation penalty with a 0% liquidation offset, defining the specific threshold for position closures.

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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.