In this issue:
- U.S. Crypto Companies Announce New Stablecoin Products
- Foreign Crypto Exchanges and DEXs Launch Tokenized Securities Products
- OCC Denies National Trust Application, Citing AML, Governance Deficiencies
- FATF Issues Targeted Report on DeFi Regulatory Challenges
- New Crypto Wallet Addresses Added to OFAC SDN List
- Stablecoin Platform Suffers $11.8M Loss
U.S. Crypto Companies Announce New Stablecoin Products
The issuer of the RLUSD stablecoin recently announced the launch of [] Mint, a new product intended to provide “a unified way for institutions to access, mint, redeem, and manage” RLUSD. According to a company blog post, [] Mint expands how institutions access RLUSD by supporting both user interface access for operational control and oversight and programmatic access for automation and system-level integration. The blog post further notes that with [] Mint, institutions can “[m]int and redeem RLUSD directly from the source,” “[b]ridge RLUSD across chains,” “[t]rack funds across the full lifecycle of a transaction,” and “[i]ntegrate RLUSD operations into internal systems or workflows.”
In more stablecoin news, a major U.S. crypto exchange recently announced the launch of a product that will allow businesses to accept USDC payments from AI agents. According to reports, businesses using the new product will be able to receive, track, reconcile and cash out agent payments from the same account used for other payment activities.
And in a final notable item, Circle, the issuer of the USDC stablecoin, recently announced that it has acquired the blockchain patent portfolio of a major U.S. technology company. According to a company blog post, “[t]he portfolio comprises over 680 patent families and nearly 1,000 issued patents worldwide, spanning foundational blockchain technology, banking, financial services, insurance, enterprise infrastructure, supply chain verification, and secure cloud operations.”
For more information, please refer to the following links:
- Meet []
- [] lets businesses accept USDC payments from AI agents
- Circle Acquires [] Blockchain Patent Portfolio
- [] portfolio acquisition makes Circle the largest US blockchain patent holder
Foreign Crypto Exchanges and DEXs Launch Tokenized Securities Products
Bybit, a major UAE-based crypto exchange, recently announced “the integration of xStocks into its Dual Asset product, becoming the first centralized exchange to offer xStocks as underlying assets for a structured yield product of its kind.” A press release notes that the newly available xStocks tokens track U.S. publicly traded companies spanning aerospace, technology and financial services. According to the press release, “Bybit’s xStocks Dual Asset allows users to select an xStock pair, target price, and investment period to pursue yield based on their view of the underlying stock’s price movement.”
In related news, Arcus, a decentralized exchange (DEX), has reportedly launched 24/7 trading of more than 95 “Stock Tokens” on the newly launched Robinhood Chain blockchain. The Stock Tokens reportedly give eligible traders exposure to the underlying stock of leading U.S. public companies across multiple sectors.
And the largest DEX by trading volume recently announced the launch of “Permissioned Pools,” a new feature that “enables permissioned asset trading through Automated Market Makers (AMMs) with compliance enforced directly onchain.” According to a blog post, the new feature was launched with partners that represent “a growing set of issuers and platforms seeking compliant access to onchain markets for tokenized funds, securities, equities, and other permissioned assets.”
For more information, please refer to the following links:
- Bybit Expands Fixed-Return Dual Asset Product Beyond Crypto With xStocks
- Arcus rolls out 24/7 tokenized US stocks and perpetual markets on Robinhood Chain
- Introducing Permissioned Pools on Uniswap v4
OCC Denies National Trust Application, Citing AML, Governance Deficiencies
By Om Kakani
The Office of the Comptroller of the Currency (OCC) recently denied Wise US Inc.’s application to establish Wise National Trust (WNT), concluding that the applicants failed to demonstrate that the proposed institution would satisfy applicable regulatory expectations for a national trust bank.
In a July 21 denial letter, the OCC stated that the organizers of WNT, whose payment infrastructure could be used to facilitate interoperability involving cryptocurrencies and stablecoins, did not adequately address “key deficiencies” in the proposed anti-money laundering and countering the financing of terrorism (AML/CFT) program. The OCC determined that WNT would not satisfy regulatory expectations “until Wise has addressed existing deficiencies and develops an enhanced enterprise-wide AML/CFT program.” The OCC’s decision identifies several factors supporting its conclusion, including:
- Prior AML Enforcement History –The OCC referenced a July 2025 multistate settlement in which Wise agreed to pay approximately $4.2 million to resolve allegations relating to deficiencies in its AML compliance program.
- Enterprise-Wide AML/CFT Concerns –According to the OCC, WNT would operate as a relatively small component of a larger enterprise. The agency concluded that the applicants had not demonstrated that the broader organization maintained an enterprise-wide AML/CFT framework capable of supporting the proposed national trust bank and had not sufficiently addressed existing deficiencies or established an enhanced AML/CFT program adequate for the risks associated with the proposed institution.
- Elevated Financial Crime Risk –The OCC noted that the services contemplated by WNT presented heightened illicit-finance risk.
- Management and Governance Knowledge Deficiencies – According to the denial letter, the organizers did not demonstrate sufficient familiarity with national banking laws and regulations. The OCC further found that the proposed management team and board of directors had not demonstrated sufficient competence regarding either the services to be provided by WNT or the fiduciary requirements applicable to national trust banks.
For more information, please refer to the following link:
FATF Issues Targeted Report on DeFi Regulatory Challenges
By Om Kakani
On July 21, the Financial Action Task Force (FATF) published its Targeted Report on Regulatory Challenges from Decentralized Finance (DeFi), updating its analysis of how anti-money laundering, counter-terrorist financing and counter-proliferation financing standards apply to DeFi arrangements. The report examines the growth of the DeFi sector, identifies financial crime risks associated with DeFi activity, evaluates global implementation of FATF Recommendation 15 and provides indicators for identifying persons who may exercise control or sufficient influence over DeFi arrangements.
According to the report, approximately 93 percent of surveyed jurisdictions (132 of 143) reported that they have not yet implemented FATF standards applicable to qualifying DeFi arrangements. FATF stated that these implementation gaps create challenges for supervision and enforcement as DeFi activity continues to expand globally. The report states that DeFi’s growth has been accompanied by increasing exploitation by illicit actors and that certain characteristics frequently associated with DeFi arrangements may be exploited for illicit purposes, including permissionless access, automated execution through smart contracts, cross-border accessibility, pseudonymous or non-identified participation, and rapid execution of complex transactions across multiple protocols.
The report reiterates FATF’s position that DeFi arrangements may fall within the scope of Recommendation 15 and may have AML/CFT obligations where a natural or legal person exercises control or sufficient influence over the arrangement. FATF emphasized that the regulatory analysis focuses on the existence of control or influence rather than the use of decentralized technology itself. FATF identified the following indicators that jurisdictions may consider when determining whether a person exercises control or sufficient influence over a DeFi arrangement: (1) governance token concentration; (2) administrative or upgrade rights; (3) authority over protocol modifications; (4) Treasury control; (5) economic interests tied to protocol operation; (6) influence over development activities; and (7) control of critical infrastructure or interfaces associated with a protocol.
The report also addresses interactions between regulated entities and DeFi arrangements. According to the report, financial institutions and virtual asset service providers (VASPs) that interact with or provide services involving DeFi arrangements should comply, as appropriate, with applicable FATF Recommendations, including Recommendation 15 (New Technologies), Recommendation 10 (Customer Due Diligence) and Recommendation 13 (Correspondent Banking).
For more information, please refer to the following link:
New Crypto Wallet Addresses Added to OFAC SDN List
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) recently announced two sanctions actions involving cryptocurrencies. On July 23, OFAC announced that it has designated “a senior Egyptian Muslim Brotherhood (EMB) official, along with three individuals and three entities that have provided material support to Hamas.” According to a press release, one of the designated entities, El-Kahira, “provided underground banking services, servicing both fiat and cryptocurrencies, to known … organized crime groups.”
On July 29, OFAC announced that it has designated “two firms integral to an Islamic Revolutionary Guard Corps (IRGC)-backed extortion scheme that forces commercial vessels to purchase mandatory maritime ‘insurance’ to transit the Strait.” According to a press release, the designated entities are used by the IRGC “to extract revenue under the guise of maritime services, including payments in digital assets to evade sanctions—allowing Iran to tighten control over shipping activity and funnel funds into IRGC operations.”
In connection with these actions, OFAC added multiple new cryptocurrency wallet addresses to the OFAC Specially Designated Nationals (SDN) List.
For more information, please refer to the following links:
- Treasury Disrupts Muslim Brotherhood and Hamas Financial Networks
- Counter Terrorism Designations; Counter Narcotics Designations; Cuba Designations; Belarus-related Designation Removal; Issuance of Cuba-related General Licenses
- OFAC Sanctions Members of Hamas Financing Network
- Treasury Disrupts Iranian Regime’s Strait of Hormuz Extortion Network
- Specially Designated Nationals List Updates
Stablecoin Platform Suffers $11.8M Loss
By Lauren Bass
Earlier this week Triple-A, a Singapore-based stablecoin payments company, reportedly identified “unauthorized access” to certain wallets on its platform. According to reports, the incident resulted in the platform losing approximately $11.8 million; however, client funds were reportedly not affected. Triple-A is reportedly working with blockchain and cybersecurity specialists to investigate, trace and aid in recovery of the pilfered assets.
For more information, please refer to the following link:
