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<a href="#Stablecoin">Stablecoin Products Announced, Crypto Exchange Launches New Offerings</a>

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<a href="#Banks">Major US Banks Announce Tokenization Initiatives</a>

<a href="#Exchange">Major US Crypto Exchange Publishes 2026 Crypto Market Outlook</a>

<a href="#GENIUS">Proposed Rule Would Establish GENIUS Stablecoin Issuer Application Provisions</a>

<a href="#OCC">OCC Approves National Trust Bank Charter Applications for Digital Asset Cos.</a>

<a href="#SEC">SEC No-Action Letter Authorizes DTC Tokenization Pilot</a>

<a href="#VBit">SEC Charges VBit Founder with $95.6M Crypto Mining Fraud</a>

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Stablecoin Products Announced, Crypto Exchange Launches New Offerings

By <a href="https://www.bakerlaw.com/KeithRMurphy" target="_blank" rel="noreferrer noopener">Keith R. Murphy</a>

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A major global payments company recently announced the launch of USDC settlement in the U.S., which reportedly will allow U.S. payment issuer and acquirer partners to settle with the payments company in the USDC stablecoin. Through the new stablecoin settlement process, “issuers can benefit from faster funds movement over blockchains, seven‑day availability and enhanced operational resilience across weekends and holidays – without any change to the consumer card experience,” according to the press release. As of the end of Nov. 2025, the payments company’s monthly stablecoin settlement volume reportedly passed a $3.5 billion annualized run rate.

In other stablecoin news, a well-known video-sharing platform is allowing creators in the U.S. to receive payouts in the PYUSD stablecoin, according to a recent report. The stablecoin activity will reportedly be handled by the payments company affiliated with the PYUSD issuer.

In a final notable development, the largest U.S. cryptocurrency exchange recently announced a system update in which it simultaneously launched multiple new products. According to a company blog post, the newly launched products include prediction markets, 24-hour stock trading, futures and perpetual futures, token sales, DEX trading, and applications for businesses, developers and token issuers.

For more information, please refer to the following links:

<a href="https://investor.visa.com/news/news-details/2025/Visa-Launches-Stablecoin-Settlement-in-the-United-States-Marking-a-Breakthrough-for-Stablecoin-Integration/default.aspx" target="_blank" rel="noreferrer noopener">Visa Launches Stablecoin Settlement in the United States, Marking a Breakthrough for Stablecoin Integration</a>

<a href="https://fortune.com/2025/12/11/youtube-paypal-google-stablecoin-payouts-pyusd/" target="_blank" rel="noreferrer noopener">Exclusive: YouTube launches option for U.S. creators to receive stablecoin payouts through PayPal</a>

<a href="https://www.coinbase.com/events" target="_blank" rel="noreferrer noopener">Coinbase System Update</a>

Major US Banks Announce Tokenization Initiatives

By <a href="https://www.bakerlaw.com/RobertAMusiala" target="_blank" rel="noreferrer noopener">Robert A. Musiala Jr.</a>

The largest U.S. bank recently published two press releases announcing digital asset initiatives. In the first press release, the bank announced that it has “successfully arranged a U.S. Commercial Paper (‘USCP’) issuance” on the Solana blockchain. According to the press release, “The transaction is one of the earliest debt issuances ever executed on a public blockchain, and among the first in the U.S. to harness blockchain for the issuance and servicing of securities, marking a significant milestone for financial markets globally.” The press release further notes that the bank “acted as Arranger, created the on-chain USCP token and facilitated the delivery-versus-payment settlement of the primary issuance” with “[b]oth the issuance and redemption proceeds … paid in USDC stablecoins.”

In the second press release, the bank “announced the launch of its first tokenized money market fund, My OnChain Net Yield Fund (‘MONY’), now available on the public Ethereum blockchain.” According to the press release, “MONY is a 506(c) private placement fund providing qualified investors the opportunity to earn U.S. dollar yields” and is “[p]owered by Kinexys Digital Assets, the firm’s industry-leading, multi-chain asset tokenization solution.”

In a related development, another major U.S. bank announced a partnership with Ondo Finance to launch “a tokenized liquidity fund designed to bring traditional cash management onchain.” According to a blog post, “Ondo Finance’s OUSG fund intends to serve as the lead anchor investor.”

<a href="https://www.jpmorgan.com/about-us/corporate-news/2025/jpmorgan-commercial-paper-issuance-solana-blockchain" target="_blank" rel="noreferrer noopener">J.P. Morgan arranges landmark U.S. Commercial Paper issuance on Solana Public Blockchain for Galaxy Digital Holdings LP</a>

<a href="https://www.prnewswire.com/news-releases/jp-morgan-asset-management-launches-its-first-tokenized-money-market-fund-302642262.html" target="_blank" rel="noreferrer noopener">J.P. Morgan Asset Management Launches Its First Tokenized Money Market Fund</a>

<a href="https://ondo.finance/blog/state-street-galaxy-ondo-tokenized-sweep-fund?utm_source=substack&amp;utm_medium=email" target="_blank" rel="noreferrer noopener">State Street Investment Management, Galaxy Digital, and Ondo Finance Announce Plans to Launch Private Tokenized Money Market Fund</a>

Major US Crypto Exchange Publishes 2026 Crypto Market Outlook

By <a href="https://www.bakerlaw.com/professionals/jonathan-cardenas/" target="_blank" rel="noreferrer noopener">Jonathan Cardenas</a><a href="https://www.bakerlaw.com/VeronicaReynolds"></a>

The institutional investor division of a leading global cryptocurrency exchange recently published its 2026 crypto market outlook. According to the report, 2025 was a year of “massive” regulatory progress in the U.S. with the entry into law of the GENIUS Act, the passage of the CLARITY Act in the U.S. House of Representatives, and the launch of the U.S. Securities and Exchange Commission’s and Commodity Futures Trading Commission’s pro-crypto regulatory initiatives. From an adoption standpoint, the report describes 2025 as an “extraordinary and transformative period” for crypto as a result of increased institutional adoption that was facilitated by the rise of crypto spot exchange-traded funds (ETFs) and digital asset treasury (DAT) companies. While the report predicts that crypto ETFs are likely to gain more traction in 2026, it is more cautious with respect to DATs, which the report describes as currently undergoing a phase of “valuation-disciplined consolidation.” With respect to Bitcoin (BTC), the report notes that BTC experienced “modest volatility” in 2025 but has continued to solidify its position within global financial markets. The report also predicts continued growth in the stablecoin, tokenized real-world asset and crypto derivatives markets in 2026.

For more information, please refer to the following link:

<a href="https://downloads.ctfassets.net/k3n74unfin40/rmATDHYWNtdxmeLGypfqm/1ab64899b1133d1f7cccd28fdf4c5f4d/CB_CryptoMarketOutlook_2026.pdf" target="_blank" rel="noreferrer noopener">Coinbase 2026 Crypto Market Outlook</a>

Proposed Rule Would Establish GENIUS Stablecoin Issuer Application Provisions

One of the primary U.S. federal banking regulators recently published a press release announcing that it has “approved a notice of proposed rulemaking that would implement the application provisions under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).” According to the press release, “The proposed rule would implement the requirements of section 5 of the GENIUS Act with respect to evaluating applications based on the statutory factors, processing applications within specified timeframes, and establishing an appeal process for denied applications.”

The proposed rule was published in the Federal Register on Dec. 19. Among other things, the proposed rule addresses scope, definitions, filing location, contents of the filing, additional information for applications, processing decisions, and hearing and appeal procedures and final determination. The proposed rule would implement the requirements of Section 5 of the GENIUS Act with respect to evaluating the factors, processing applications within specified time frames and establishing an appeal process. As required under the GENIUS Act, an application would be denied only if the activities of the applicant would be unsafe or unsound based on the factors described in Section 5(c) of the act.

The proposed rule would distinguish the applicant – the federally insured banking institution – from the permitted payment stablecoin issuer (PPSI) subsidiary through which the applicant would issue payment stablecoins and perform certain other payment stablecoin activities permitted by the GENIUS Act. Applications would require inclusion of an engagement letter with a registered public accounting firm “to demonstrate that the applicant’s subsidiary would be able to comply with the examination of monthly reserve reports and certification requirements” of the GENIUS Act. Comments on the proposed rule will be accepted for 60 days after the date of publication in the Federal Register.

<a href="https://www.fdic.gov/news/press-releases/2025/fdic-approves-proposal-establish-genius-act-application-procedures-fdic" target="_blank" rel="noreferrer noopener">FDIC Approves Proposal to Establish GENIUS Act Application Procedures for FDIC-Supervised Institutions Seeking to Issue Payment Stablecoins</a>

<a href="https://www.fdic.gov/board/federal-register-notice-approval-requirements-issuance-payment-stablecoins-subsidiaries-fdic" target="_blank" rel="noreferrer noopener">Approval Requirements for Issuance of Payment Stablecoins by Subsidiaries of FDIC-Supervised Insured Depository Institutions</a>

OCC Approves National Trust Bank Charter Applications for Digital Asset Cos.

On Dec. 12, the U.S. Office of the Comptroller of the Currency (OCC) announced its conditional approval of five national trust bank charter applications recently filed by digital asset-focused companies, including First National Digital Currency Bank; Ripple National Trust Bank; [] Bank &amp; Trust, N.A.; Fidelity Digital Assets, N.A.; and Paxos Trust Company, N.A. The OCC also conditionally approved applications to convert from a state trust company to a national trust bank for [] Bank &amp; Trust, N.A.; Fidelity Digital Assets, N.A.; and Paxos Trust Company, N.A.

The OCC press release includes links to the OCC’s decision letters for each of the five approved charter applications. The letters provide specific information about each charter application, including public commentary on the application and specific conditions and limitations imposed by the OCC on each applicant. In a statement from the press release, Comptroller of the Currency Jonathan V. Gould said, “The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy.”

<a href="https://www.occ.treas.gov/news-issuances/news-releases/2025/nr-occ-2025-125.html" target="_blank" rel="noreferrer noopener">OCC Announces Conditional Approvals for Five National Trust Bank Charter Applications</a>

SEC No-Action Letter Authorizes DTC Tokenization Pilot

By <a href="https://www.bakerlaw.com/professionals/om-m-kakani/" target="_blank" rel="noreferrer noopener">Om M. Kakani</a>

On Dec. 11, the U.S. Securities and Exchange Commission (SEC) Division of Trading and Markets (Division) published a statement in response to a request for no-action relief (No-Action Letter) concerning granting permission to operate a voluntary securities tokenization pilot on approved blockchain networks. The No-Action Letter was filed by The Depository Trust Company (DTC), a New York-based entity that is the primary central securities depository in the U.S. and a subsidiary of the Depository Trust &amp; Clearing Corporation (DTCC).

The No-Action Letter establishes a three-year pilot period with clearly defined parameters for asset eligibility and operational design. Recordkeeping will involve mirroring tokenized transactions on DTC’s centralized ledger to ensure continuity and compliance. According to the No-Action Letter, DTC outlines a framework for tokenizing highly liquid securities while preserving traditional market standards for investor protection and system integrity. Under this pilot, DTC participants can register blockchain wallet addresses and tokenize book-entry entitlements to eligible securities, while DTC maintains both on-chain records and its official centralized ledgers.

According to the SEC’s statement, based on the facts and representations in the No-Action Letter, the Division would not recommend enforcement action under Regulation Systems Compliance and Integrity (Reg SCI), Section 19(b) of the Exchange Act and Rule 19b-4 as well as Exchange Act Rules 17Ad-22(e), 17Ad-25(i) and 17Ad-25(j) in relation to DTC’s operation of DTCC tokenization services.

That same day, DTCC announced the launch of its initiative “Paving the Way to Tokenized DTC-Custodied Assets.” The announcement confirmed that DTC is authorized to offer a tokenization service for DTC-custodied assets under federal securities laws in a controlled production setting. The initial scope of the pilot includes highly liquid assets such as Russell 1000 stocks; exchange-traded funds tracking major indices; and U.S. Treasuries, including bills, bonds and notes. The pilot service is expected to roll out in the second half of 2026. Digital tokens created under this program will carry the same entitlements, investor protections and ownership rights as their traditional equivalents. DTCC emphasized that the service will maintain resiliency, safety and soundness comparable to existing market infrastructure and will support interoperability across multiple blockchains and token standards.

<a href="https://www.sec.gov/files/tm/no-action/dtc-nal-121125.pdf" target="_blank" rel="noreferrer noopener">No-Action Letter Request Related to The Depository Trust Company’s Development of the DTCC Tokenization Services</a>

<a href="https://www.dtcc.com/news/2025/december/11/paving-the-way-to-tokenized-dtc-custodied-assets" target="_blank" rel="noreferrer noopener">DTCC Authorized to Offer New Tokenization Service, Paving the Way to Tokenized DTC-Custodied Assets</a>

SEC Charges VBit Founder with $95.6M Crypto Mining Fraud

By <a href="https://www.bakerlaw.com/professionals/amos-kim/" target="_blank" rel="noreferrer noopener">Amos Kim</a>

In a recent Litigation Release, the U.S. Securities and Exchange Commission (SEC) charged Danh C. Vo, founder and CEO of VBit Technologies Corp., with defrauding investors in a Bitcoin mining investment scheme. According to the SEC’s complaint, which was recently filed in a Delaware federal court, Vo raised over $95.6 million from approximately 6,400 investors. The SEC alleges that Vo sold agreements that promised investors a passive income stream by operating Bitcoin mining rigs, but operated fewer rigs than the number sold.

The SEC further alleges that Vo misappropriated $48.5 million of investor funds for personal expenses, gambling and gifts to family members before fleeing the U.S. The complaint alleges Vo violated the Securities Act and the Exchange Act, and it seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and a director and officer bar. Vo’s family members are named as relief defendants. According to the release, Vo’s family members have consented to final judgments ordering them to pay disgorgement of improper gains.

<a href="https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26448" target="_blank" rel="noreferrer noopener">SEC Charges Individual with Misappropriating $48.5 Million in Bitcoin Mining Investment Scheme</a>

Blockchain Monitor

Blockchain Monitor - Planet earth in outer space with network connection and sunlight.

Weekly Blockchain Monitor – December 22, 2025

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