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09/14/2026|9 minute read

In this issue:

Major Banks Announce Stablecoin and Tokenized Deposit Initiatives

By Robert A. Musiala Jr.

According to a recent press release by a major U.S. bank, 21 of the world’s largest financial institutions “announced that they have committed to establish a new company in H2 2026 … to support the issuance of a stablecoin solution.” The press release notes that the forthcoming company “intends to operate globally, with its initial focus on a USD‑denominated stablecoin offering and a longer‑term ambition of expanding issuance into stablecoins denominated in additional G7 currencies, with a EUR offering as a priority.” The group “aims for its stablecoin solution to go to market in the first half of 2027,” according to the release.

Separately, a major U.S. bank announced “the successful execution of a live pilot transaction utilizing USBDC, the bank’s proprietary U.S. dollar-backed stablecoin, to enable a cross-border payment between … entities in North America and Europe.” According to a press release, the pilot transaction was completed on the Stellar blockchain.

In Europe, a licensed bank and financial technology company recently launched EURR, a stablecoin backed 1:1 by euros, to eligible customers in Denmark, Poland and Portugal. The EURR stablecoin was launched on the Polygon Ethereum layer-2 network.

And in a final notable item, two major global banks recently announced “the first successful USD payment between Singapore and the United States executed over a weekend … using tokenised deposits via the Swift Digital Ledger.” According to a press release, “[t]he transaction took minutes to complete, marking a significant improvement from the industry norm of up to two business days for cross-border payments.”

For more information, please refer to the following links:

Crypto-Focused Businesses Achieve and Apply for OCC Bank Charters

By Keith R. Murphy

According to a recent report, the U.S. Office of the Comptroller of the Currency (OCC) has granted preliminary approval for charter applications submitted by digital banking firms Revolut and OpenReserve, allowing them to pursue the establishment of national banks in the U.S., subject to additional regulatory approvals and other requirements before they can begin operations. Revolut reportedly intends to become a full-service digital bank that offers traditional banking services alongside digital asset custody and cross-border payment capabilities using cryptocurrencies and stablecoins, along with a company-branded stablecoin through a third-party arrangement. Relatedly, OpenReserve plans to operate as a full-service insured national bank providing deposit, lending, digital asset and foreign correspondent banking services, and intends to create a wholly owned subsidiary dedicated to issuing, holding and converting U.S. dollar-backed stablecoins, according to the report.

In related news, Block Inc. announced that it has applied to the OCC seeking a national trust bank charter to establish Builders Bank & Trust N.A., an uninsured national trust bank, according to a recent press release. If approved, Builders Bank would operate under federal OCC supervision and provide custody and related fiduciary services, including for bitcoin and stablecoins, as noted in the release. Builders Bank reportedly would not accept deposits or make loans but would instead focus on custody and related trust services.

For more information, please refer to the following links:

Financial Services Firms Announce Crypto Partnerships, Retail Trading

By Robert A. Musiala Jr.

A major U.S. bank and issuer of the SoFiUSD stablecoin recently announced a partnership with an affiliate of a major U.S. crypto exchange “to enhance banking, payments, liquidity, and digital asset markets.” According to a press release, through the partnership, each company will leverage various institutional digital asset solutions offered by the other.

In related news, a major U.S. financial services company recently announced plans to expand its retail digital asset trading offering to allow clients to buy and sell solana, avalanche and chainlink. The company began offering BTC and ETH trading in May 2026.

And in Dubai, a major global bank recently announced “the expansion of its institutional Bitcoin (BTC/USD) and Ether (ETH/USD) spot trading in the UAE.” According to a press release, this makes the bank “the first Global Systemically Important Bank (G-SIB) to offer the capability in the market and the only global bank currently offering institutional digital asset spot trading in the region.”

For more information, please refer to the following links:

US Companies Announce Tokenized Securities, Institutional Crypto Initiatives

By Robert A. Musiala Jr.

A recent press release announced that “a leader in blockchain-powered financial infrastructure,” and one of the world’s leading operators of global financial exchanges, have entered into a Memorandum of Understanding (MOU) supporting “a set of agreements to support tokenized securities markets.” According to the press release, under the MOU, the blockchain financial infrastructure provider will act as “a premier design partner in developing digital transfer agent and broker-dealer infrastructure intended to support on-chain settlement of tokenized securities transactions” on the financial exchange operator’s “upcoming NYSE-affiliated tokenized securities platform.” The MOU also allows the exchange operator to license the infrastructure provider’s blockchain patent portfolio, which encompasses “23 patent families and 103 patents that underpin key elements of the security token lifecycle.”

In a related development, BitGo, a major U.S. digital asset infrastructure company, recently announced that it has “completed the acquisition of the institutional trading business and related assets of NYDIG.” According to a press release, “[t]he transaction expands BitGo’s institutional service offering” and is expected to enable expansion of BitGo’s institutional markets platform “by enhancing financing capabilities and derivatives intended to enhance the Company’s existing trading offerings while complementing BitGo’s regulated custody, settlement, and wallet infrastructure.”

For more information, please refer to the following links:

SEC Proposes Update to Transfer Agent Rules, Including Use of Blockchain

By John Robertson

The U.S. Securities and Exchange Commission (SEC) recently published a proposed update to the rules and forms that apply to registered transfer agents. According to a fact sheet, among other things the proposal would:

  • Modernize the rules to reflect how transfer agents carry out their activities in light of technological advancements, including the use of electronic and blockchain-based recordkeeping and uncertificated securities.
  • Extend the effective date of registration in existing Rule 17ac2-1 from 30 days after the Form TA-1 to 45 days.
  • Amend Rule 17ac2-2 to require transfer agents to file an amended Form TA-2 within 60 days after discovering information on a previously filed Form TA-2 was materially inaccurate, incomplete or misleading at the time of filing.
  • Establish a single retention period for most transfer agent records and modernize the rule provisions governing use of electronic systems and third parties for recordkeeping.
  • Update rules regarding turnaround and processing times, aligning the turnaround time with the current settlement cycle, and increasing the threshold from 75 percent to 95 percent for the imposition of limitations on expansion.
  • Reframe Rule 17ad-12 as a comprehensive risk management rule where transfer agents will be required to establish, maintain and enforce written policies and procedures to ensure securities and funds in the transfer agent’s possession are protected against modern risks identified by the revised rule.
  • Require transfer agents to maintain a separate bank account for holding third-party funds and establish a business continuity plan.
  • Require prompt posting to master securityholder files aligning the time frame to the modern settlement cycle.
  • Require transfer agents to establish, maintain and enforce policies and procedures designed to comply with federal securities laws, including the new proposed rules.

For more information, please refer to the following links:

FinCEN Alert Addresses Digital Asset Scams

By Ariana Dindiyal

Digital asset investment scams are a significant threat to Americans that have resulted in billions of dollars of losses. Commonly known as “pig butchering,” “romance baiting” or “cryptocurrency confidence schemes,” these sophisticated fraudulent operations are typically orchestrated by transnational criminal organizations based in Southeast Asia. Through them, criminals use fake personas and social engineering tactics to manipulate victims into transferring substantial sums of money into fraudulent investment platforms.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently published an analysis and alert warning financial institutions to be vigilant with regard to increased activity from these scams. According to FinCEN, data from the Federal Bureau of Investigation’s Internet Crime Complaint Center shows that U.S. victim losses from these scams have surged nearly 700 percent from $907 million in 2021 to $7.2 billion in 2025. 

In the alert, FinCEN identified 16 specific red flag indicators to help financial institutions detect, prevent and report suspicious activity related to scam centers. FinCEN also explained how scam centers operate to launder proceeds and reminded institutions of relevant Bank Secrecy Act (BSA) reporting obligations, filing instructions and tools to assist with reporting suspicious transactions. The alert notes that financial institutions filing suspicious activity reports (SARs) related to scam centers should reference “FIN-2026-SCAMCENTERS” in SAR field 2 and the SAR narrative.

The alert was informed by FinCEN’s September 2026 Financial Trend Analysis, which examined 33,904 BSA reports involving suspected digital asset investment scam-related activity filed between September 2023 and December 2025. The analysis covers various scam methodologies, including the use of “guarantee marketplaces,” a medium by which scam center operators purchase illicit services to perpetuate fraud, launder money, and integrate scam proceeds into the financial system through networks of money mules and stablecoin transfers to digital asset exchanges outside of the U.S. The analysis also discusses tactics, techniques and procedures that digital asset investment scammers rely on.

For more information, please refer to the following links:

Treasury, OFAC Target Digital Asset Infrastructure for Global Scam Centers

By Om M. Kakani

On Sept. 9, the U.S. Department of the Treasury (Treasury) Office of Foreign Assets Control (OFAC) announced sanctions against Xinbi Guarantee, a Chinese-language online platform that Treasury described as a major illicit marketplace supporting cyber scams, fraud, money laundering and other criminal activity targeting U.S. victims. According to Treasury, Xinbi Guarantee functions as a hub connecting scam center operators with vendors offering financial services, technology, escrow arrangements and other tools used to facilitate online fraud schemes. Treasury stated that the platform has processed more than $24 billion equivalent in digital assets and fiat currency since approximately 2022 and has become increasingly important to cybercriminal networks operating in Southeast Asia. Treasury’s action was coordinated with the Department of Justice’s Scam Center Strike Force, which simultaneously seized infrastructure and digital asset wallets associated with the platform.

The sanctions also targeted two companies alleged to have provided key services supporting Xinbi Guarantee’s operations. Treasury designated SafeW Technology Co. Ltd., a Singapore-based developer of an encrypted messaging platform used by marketplace participants, and Anwen Technology Co. Ltd., a Cambodia-based company linked to the development of a cryptocurrency payment and digital wallet application known as XinbiPay or NewPay. Treasury alleged that these entities materially assisted Xinbi Guarantee by providing technological and financial services that facilitated scam center activity and the movement of funds through digital asset ecosystems. The sanctions block the designated parties’ property and interests in property subject to U.S. jurisdiction and generally prohibit transactions involving U.S. persons.

In connection with the designations, OFAC added numerous digital asset wallet addresses associated with the sanctioned entities to the Specially Designated Nationals and Blocked Persons (SDN) List. The announcement follows a series of recent actions by Treasury and FinCEN addressing digital asset investment fraud, online scam centers, money laundering networks and the use of cryptocurrency infrastructure to facilitate illicit financial activity. Treasury indicated that the sanctions were intended to disrupt the financial and technological networks supporting these operations and to limit their access to the U.S. financial system.

For more information, please refer to the following links:

Singaporean Ringleader Pleads Guilty in $245M Crypto Racketeering Scheme

By Om M. Kakani

On Sept. 8, the U.S. Department of Justice (DOJ) announced that a Singaporean national pleaded guilty to leading a cryptocurrency-focused racketeering enterprise that generated approximately $245 million through theft, fraud and money laundering. According to DOJ, the enterprise targeted cryptocurrency holders and used a variety of techniques to obtain digital assets from victims. Prosecutors alleged that members of the enterprise obtained unauthorized access to victims’ cryptocurrency accounts and wallets, transferred digital assets under their control, and engaged in extensive laundering of the proceeds through numerous cryptocurrency transactions, exchanges and accounts designed to conceal the source and ownership of the stolen funds. As part of the guilty plea, the defendant admitted to participating in a racketeering conspiracy and agreed to forfeit assets connected to the criminal activity.

For more information, please refer to the following link:

Crypto Hack Data Published; Trezor Breach Impacts 81,000 Customers

By Amos Kim

According to a recent report, 60 percent of hacked crypto platforms had completed independent security audits before they were exploited. The report tracked losses from January 2025 through July 2026, documenting $3.63 billion stolen across 245 separate incidents. The analysis shows that infrastructure and supply chain vulnerabilities were the primary drivers of losses, accounting for more than $1.8 billion, while smart contract exploits at decentralized applications cost $546 million. According to the data, only about 11 percent of all incidents involved vulnerabilities that fell within the actual scope of a completed audit. The report notes that more than 89 percent of losses stemmed from attack surfaces, such as infrastructure, key management and governance layers, that typical smart contract audits do not cover.

Separately, another recent report details a supply chain breach affecting crypto wallet manufacturer Trezor that now impacts 81,000 customers. According to the report, a breach at Trezor’s logistics partner exposed customer information including names, emails, phone numbers, shipping addresses and order numbers. The incident reportedly involved order data from November 2019 through August 2021, in addition to previously disclosed data from May 10 through Aug. 8, 2026. Following the breach, Trezor warned customers of an increased risk of phishing, scam emails, fraudulent calls and potential physical security risks stemming from the leaked information. The report notes that Trezor claimed its logistics partner had failed to delete the data despite providing written assurances that it had done so and is evaluating potential legal action.

For more information, please refer to the following links:

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