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COINOTAG News reported on December 26 that Solv Protocol‘s Business Development Lead Catherine disclosed a collaboration between Binance and USD1 to roll out a 20% fixed annualized deposit promotion. The promo spurred a wave of USDT-to-USD1 swaps, with USD1 briefly trading at a premium of about 0.39%. In this setup, some funds were lent via the Lista DAO lending market, using SolvBTC or SolvBTC-BTCB as collateral to borrow USD1 and gradually liquidate into the spot market to meet demand. A portion of the activity involved traders placing market orders to sell BTC against USD1, aided by the product’s thin liquidity. However, the depth on the new pair was limited, and a sizable market order briefly drained the buy side, temporarily depressing BTC prices before arbitrage bots restored balance. CZ clarified that the exchange did not participate in these trades; with no index inclusion, the episode did not trigger liquidations.

Lugano expands Bitcoin payments into everyday life. Lightning Network reduces fees for local merchants. Circular economy connects Bitcoin and municipal services. The Swiss city of Lugano has become one of the most concrete examples of Bitcoin adoption in real-world payments, putting the optimism of investors and cryptocurrency advocates to the test. What once seemed restricted to speeches and events is now part of the urban routine, with residents and visitors using Bitcoin to pay for everyday expenses. In the vicinity of the city hall, employees report that the question “Can I pay this with Bitcoin?” has become frequent. In Lugano, the answer is straightforward. Through the Plano ₿ initiative, the city allows the payment of virtually all municipal fees with Bitcoin or USDT, including taxes, parking fines, school fees, and public services. According to the local administration, “invoices issued by the city of Lugano can be paid with BTC, Bitcoin on the Lightning Network, and USDT,” with no limit on the amount. The adopted infrastructure is a central part of the strategy. Payments are processed via the Lightning Network or through a partnership with Bitcoin Suisse, which is responsible for the immediate conversion to Swiss francs. The approximately 1% fee embedded in the exchange rate represents a significant reduction for merchants who previously bore card costs between 2,5% and 3,4%, directly impacting the operating margin of small businesses. Related Stories Bitcoin is trending towards consolidation in 2026 with ETFs and a more mature market. 24/12/2025 Bitcoin and gold are tied in returns and are shaping the narrative of the crypto market. 24/12/2025 Municipal authorities emphasize that the goal is not to build up Bitcoin reserves. Any value received in cryptocurrencies is automatically converted to the local currency before being transferred to public coffers. The focus is on the efficiency of the payment system and the inclusion of citizens who already use Bitcoin or USDT in their daily lives. Beyond the technical infrastructure, Lugano has invested in a circular economy model. Through the MyLugano app, consumers receive up to 10% cashback in LVGA tokens when paying with cryptocurrencies at participating establishments. These tokens can be used for municipal services, such as public parking and daycare centers, creating a closed loop between private consumption and public services. The participation of local businesses reinforces the proposal. According to the city hall and the organizers of Plan ₿, more than 350 establishments already accept payments via Lightning Network. The system's presence is visible in cafes, restaurants, and traditional shops. One merchant summarized the economic logic by stating: “Bitcoin fees are less than 1%, while my card machine charges up to 3,4% — I don't need a philosophy degree to choose.” With events like the Plan ₿ Forum bringing together thousands of participants, Lugano is no longer just a slogan associated with Bitcoin, but is becoming an active cryptocurrency payments laboratory, closely watched by investors and policymakers around the world. Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss. Tags: Bitcoin Lugano

In brief The stablecoin supply jumped $100 billion to a total of $314 billion in 2025. Tether leads in transaction activity, followed by Ripple's RLUSD and Circle's USDC. The Trump-backed USD1 reached the top 5 just months after April launch. Decrypt’s Art, Fashion, and Entertainment Hub. Discover SCENE This was a defining year for stablecoins, with the signing of the GENIUS Act, a high-flying IPO for Circle, and a handful of tokens outpacing the rest. Since the start of January, the overall U.S. dollar-denominated stablecoin supply has increased by more than $100 billion, to $314 billion total. But that doesn’t mean all boats have risen at the same rate. To measure stablecoin performance, Decrypt calculated velocity using historical data from crypto price aggregator CoinGecko from January through December 15. Velocity divides total volume by average supply, resulting in a calculation of how many times each coin has, on average, changed hands. amp;amp;lt;span data-mce-type="bookmark" style="width:0px;overflow:hidden;line-height:0" class="mce_SELRES_start"amp;amp;gt;amp;amp;lt;/spanamp;amp;gt; As former Commodities and Futures Trading Commission Chairman Timothy Massad explained to Decrypt, measuring velocity beats rankings that rely only on total supply. “Stablecoins can be very useful without there being a large market cap,” he said. “In other words, it's really the velocity, the transaction use, and they can circulate very quickly even if the amount outstanding is not that great.” Tether (USDT) Tether tops the list with a velocity of 166 because it’s long been a workhorse for global crypto trading. It can’t claim the crown as the first-ever stablecoin—that belongs to BitUSD. But it launched the same year, in 2014, and became the first widely used one. Tether boasts a market capitalization of $186 billion after increasing 35% since the start of the year, according to CoinGecko data. The bulk of Tether tokens get traded on Ethereum (46.3%) and Tron (41.4%), according to DeFi Llama data. Tether began the year by relocating to Bitcoin-friendly El Salvador, where President Nayib Bukele declared BTC legal tender in 2021. There have been a few bumps, though. In March, Binance said it would delist USDT for European Union users to stay compliant with MiCA regulations, which require stablecoin issuers to be licensed. But that’s not stopped the company from turning a hefty profit. So far in 2025, Tether has seen $10 billion in profit in the first three quarters of the year, the company said in October. Ripple USD (RLUSD) Ripple Labs’ stablecoin, RLUSD, swiped the second spot with a velocity of 71. That means, on average, every RLUSD token has changed hands 71 times since the start of the year. In most stablecoin lineups, Circle’s USDC would hold this spot because its $78 billion market capitalization trumps that of RLUSD’s $1.3 billion. But as Massad pointed out, stablecoin performance has more to do with being able to move money efficiently than its total supply. Ripple was provisionally approved for a national banking charter by the Office of the Comptroller of the Currency, or OCC, in December. “This is a massive step forward—first for RLUSD— setting the highest standard for stablecoin compliance with both federal (OCC) state (NYDFS) oversight,” Ripple Labs CEO Brad Garlinghouse wrote on X. HUGE news! @Ripple just received conditional approval from the @USOCC to charter Ripple National Trust Bank. This is a massive step forward - first for $RLUSD, setting the highest standard for stablecoin compliance with both federal (OCC) state (NYDFS) oversight. To the… — Brad Garlinghouse (@bgarlinghouse) December 12, 2025 Ripple Senior Vice President of Stablecoins Jack McDonald has often pointed out that RLUSD was specifically designed for institutional use. At the start of December, Ripple got the green light from the Singapore Monetary Authority, or MAS, to expand XRP and RLUSD payments in Singapore. And earlier this year, RLUSD was integrated into Securitize's tokenization platform. That means it’s one of the assets investors can swap for tokenized money market funds. Circle (USDC) USDC saw its velocity reach 56 in 2025, while its market capitalization climbed 78% to $78.4 billion by December 15. Perhaps more than any of its competitors, Circle benefitted massively from the passage of the GENIUS Act. Its operating model already resembled the federally regulated framework that’s now become U.S. law. That’s given Circle a head start on compliance and investor confidence—and investors took note. CRCL was so popular with investors on its debut that the NYSE halted trading three times. Since then, Circle has reported $740 million in Q3 revenue, marking a 66% year-over-year increase. Circle has also rolled out the testnet for Arc, its layer-1 blockchain, which counts BlackRock, Visa, and Amazon Web Services as early participants. Circle was also one of several stablecoin issuers—including Ripple, Paxos and BitGo—which got a provisional approval for its national banking charter and will be looking to expand into broader financial services. USD1 (USD1) USD1 is an outlier because it launched in April, and therefore doesn’t have nearly a full year’s worth of data. But that didn’t stop it from landing right next to the podium with a velocity of 39. Issued by World Liberty Financial—the crypto-focused firm co-founded by Donald Trump Jr. and partners—USD1 was designed from the outset to be a highly liquid transactional stablecoin. The token reached a $1 billion market cap in April, less than a month after its launch, according to data from CoinGecko. There have been some very bullish predictions about its growth. Blockstreet’s Kyle Klemmer told Decrypt he believes USD1 will be the world’s dominant stablecoin, beating USDT and USDC, before President Donald Trump’s second term ends in 2029. The project has leaned heavily on retail distribution and promotional partnerships, including integrations with several U.S.-based crypto exchanges, like Coinbase and FalconX, and it’s making a bid to become “Solana’s go-to stablecoin” by teaming up with meme coin platform Bonk and decentralized exchange Raydium. PayPal USD (PYUSD) PayPal USD’s velocity of 18 lands it in fifth place on this list. Its 2023 debut made big waves because it was the first time an established payments platform made a bid at issuing a stablecoin—years before there was a regulatory framework in the U.S.. For most of this year, growth for PYUSD moved at a modest pace. Its market capitalization peaked above $1 billion in June and then established a foothold in September. Since then, it’s nearly tripled to $3.8 billion as of December 15. PayPal has teamed with LayerZero to expand the token’s presence to nine new blockchains, including Tron, Abstract, Aptos, and Avalanche. But there’s also been some controversy. In October, observers noted that PYUSD issuer Paxos minted and then immediately burned $300 trillion worth of tokens. It’s an impossibly large number of tokens, given it represents more than twice the world’s GDP. At 3:12 PM EST, Paxos mistakenly minted excess PYUSD as part of an internal transfer. Paxos immediately identified the error and burned the excess PYUSD. This was an internal technical error. There is no security breach. Customer funds are safe. We have addressed the root… — Paxos (@Paxos) October 15, 2025 "This was an internal technical error. There is no security breach,” the firm wrote on X. “Customer funds are safe. We have addressed the root cause." USDe (USDe) Ethena Labs’ USDe demonstrated a velocity of 11 in 2025, with its market capitalization showing a modest gain of 11% from $5.8 billion in January to $6.5 billion by December 15. But that trajectory leaves out the fact that its market cap soared to nearly $15 billion before the early October flash crash. USDe is the only stablecoin on this list that isn’t backed by fiat currency: It’s backed by a delta-neutral strategy involving staked Ethereum and perpetual futures hedges. But its reliance on derivatives means that times of high volatility and shifts in sentiment can cause big swings in market capitalization. Even with a less straightforward structure, the token’s advocates include billionaire Arthur Hayes. But not all regulators are convinced. Ethena Labs pulled out of the German market in April over growing scrutiny over its “serious deficiencies” in compliance. USDS (USDS) Sky’s USDS showed extremely low velocity of 1 in 2025—and that’s by design. To avoid confusion: Sky is a rebrand of DeFi OG MakerDAO and USDS is a rebrand of its DAI stablecoin. Unlike USDT or USDC, which function as transactional stablecoins, most USDS tokens sit locked in Maker vaults or savings contracts as collateral for DeFi loans rather than circulating. Its role in DeFi is closer to a yield-bearing savings instrument than digital cash, so it naturally turns over far less often. For example, the Sky Protocol currently offers a 4% rewards rate (paid in SKY tokens) to users who hold USDS. As of 2025, USDS has seen its market capitalization grow from $5.2 billion at the start of the year to $9.8 billion, marking an 85% increase in just under 12 months.

Imagine paying your local taxes with the same digital currency you use for a coffee. This is now a reality in Lugano, Switzerland. The city has taken a monumental leap, integrating Bitcoin payments into the fabric of daily commerce and civic life. This move goes far beyond a simple pilot program, establishing a clear blueprint for the future of money. What Does Lugano’s Bitcoin Adoption Really Mean? Lugano’s initiative, known as “Plan ₿,” is a partnership with Tether, the company behind the USDT stablecoin. The goal is straightforward yet ambitious: build the necessary infrastructure for using Bitcoin in everyday life. Consequently, residents and visitors can now use Bitcoin for a stunning array of transactions. This includes: Paying municipal taxes and fees Shopping at local businesses Dining at franchises like McDonald’s Using the city’s public services Is This Just a Marketing Stunt or Real Utility? Critics might dismiss this as a publicity campaign. However, the evidence suggests otherwise. Both Bitcoin and Tether’s USDT are actively circulating in the local economy. Moreover, the city has introduced its own digital token, called LVGA, to further incentivize and streamline cryptocurrency transactions within its borders. This three-pronged approach—Bitcoin, a major stablecoin, and a local utility token—creates a robust ecosystem. It provides stability, global reach, and local benefits, addressing different user needs. How Does Lugano’s Model Contrast with Global Central Banks? While many central banks approach digital currencies with a mix of curiosity and caution, Lugano presents a starkly different model. The city is not waiting for a national digital currency mandate. Instead, it is proactively implementing a decentralized, citizen-focused solution today. This bottom-up, municipal-level adoption challenges the traditional top-down financial model. It demonstrates how cities can become innovation hubs, testing and proving concepts that larger, more cautious institutions may later adopt. What Are the Tangible Benefits and Challenges? The benefits of this system are compelling. For users, it offers faster transaction settlement and reduced fees for cross-border payments. For the city, it attracts tech-savvy businesses, tourists, and investors, boosting the local economy. It also future-proofs the city’s financial infrastructure. However, challenges remain. Price volatility of Bitcoin is a concern, though the use of USDT mitigates this for daily spending. Regulatory clarity and widespread public education are also ongoing priorities to ensure smooth and secure adoption. Conclusion: A Glimpse into a Crypto-Native Future Lugano is not just accepting a new payment method; it is building a new financial layer for its city. Its success provides a powerful, real-world case study for other municipalities watching the digital currency revolution. By making Bitcoin payments practical for mundane tasks, Lugano is demystifying cryptocurrency and showcasing its potential as a tool for civic innovation and economic growth. Frequently Asked Questions (FAQs) Q: Can I really pay my taxes with Bitcoin in Lugano?A: Yes. One of the cornerstone features of Plan ₿ is the ability for residents to settle municipal taxes and invoices using Bitcoin or USDT. Q: How do everyday purchases with Bitcoin work in stores?A: Participating merchants use point-of-sale systems or QR codes that convert the Bitcoin or USDT payment into Swiss francs at the moment of sale, ensuring price stability for the business. Q: What is the LVGA token used for?A: The LVGA token acts as a local loyalty and utility token. It can be earned for using city services and spent at participating merchants, encouraging a circular local economy powered by digital assets. Q: Is this initiative legal under Swiss law?A: Yes. Switzerland has a progressive and clear regulatory framework for cryptocurrencies. Lugano’s Plan ₿ operates in full compliance with national and cantonal financial regulations. Q: As a tourist, can I use Bitcoin easily in Lugano?A: Absolutely. The infrastructure is designed for both residents and visitors. Many hotels, restaurants, and shops in the city center accept cryptocurrency payments. Q: How does this affect the average non-crypto user in Lugano?A They can continue using Swiss francs as normal. The initiative adds an optional, parallel payment system, increasing choice and modernizing the city’s economic options without forcing change on anyone. Found this look into Lugano’s financial future fascinating? Share this article on your social media to spark a conversation about how cities worldwide can embrace innovation! What would you buy with Bitcoin in your hometown? To learn more about the latest Bitcoin trends, explore our article on key developments shaping Bitcoin institutional adoption and real-world use cases. Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

In a landmark demonstration of evolving regulatory pressure, Tether, the issuer of the dominant USDT stablecoin, has frozen a staggering $3.3 billion in assets tied to illicit activities since 2023—a figure that starkly redefines the compliance landscape for the entire cryptocurrency sector. This unprecedented action, based on data from AMLBot and reported by Cointelegraph, not only underscores the scale of intervention but also triggers a crucial conversation about security, transparency, and the future of digital asset oversight. The move represents a pivotal shift from perception to enforcement within the industry. Tether’s $3.3B Freeze Reshapes Crypto Compliance Narrative The sheer magnitude of Tether’s asset freeze commands immediate attention. Between 2023 and 2025, the company proactively restricted approximately $3.3 billion worth of its USDT tokens. Analysts link these funds to a spectrum of illegal operations, including sanctions evasion, terrorist financing, and large-scale fraud. This action directly counters long-standing criticisms regarding the potential for stablecoins to operate outside traditional financial oversight. Consequently, the freeze serves as a powerful rebuttal to those claims. Industry experts point to several converging factors behind this aggressive posture. Firstly, intensified global regulatory scrutiny, particularly from bodies like the Financial Action Task Force (FATF), has forced issuers to bolster their compliance frameworks. Secondly, Tether’s own commitment to working with law enforcement agencies worldwide, including the U.S. Department of Justice and the FBI, has created a more cooperative operational model. Finally, the deployment of advanced blockchain analytics tools allows for real-time tracking of transaction flows across wallets and exchanges. A Stark Contrast in Stablecoin Security Protocols The data reveals a dramatic disparity in frozen assets between leading stablecoin issuers. During the same 2023-2025 period, Circle, the issuer of the USDC stablecoin, froze $109 million. This makes Tether’s frozen amount roughly thirty times larger. Several critical factors explain this significant gap. Primarily, USDT’s substantially larger market share and circulation mean it presents a larger target for illicit actors. Furthermore, Tether’s earlier and broader adoption across global, sometimes less-regulated, exchanges increased its exposure. However, the comparison also hints at potentially different compliance philosophies and technological capabilities. Circle has historically emphasized a more centralized, bank-like structure with pre-emptive vetting. Conversely, Tether’s approach has evolved to include robust post-hoc investigation and freezing capabilities. It is crucial to note that the reported statistics only include assets on the Ethereum blockchain. Both USDT and USDC exist on multiple other networks like Tron, Solana, and Avalanche, meaning the actual total of frozen funds across all blockchains is undoubtedly higher. Expert Analysis: The Ripple Effects of Large-Scale Freezes Financial compliance specialists highlight the profound implications of such large-scale interventions. “The $3.3 billion figure isn’t just a statistic; it’s a market signal,” explains Dr. Anya Petrova, a fintech regulation researcher at the Global Digital Finance Institute. “It demonstrates that even the most liquid crypto assets are not beyond the reach of coordinated action. This will deter casual illicit use and force sophisticated actors to constantly adapt, increasing their operational cost and risk.” The technical mechanism behind a freeze is equally important. Tether, as the centralized issuer, maintains a blacklist of wallet addresses. When it adds an address to this list, the smart contract governing USDT prevents those specific tokens from being moved or spent, effectively immobilizing them. This power, while controversial to some decentralization purists, has become a standard tool for major stablecoin issuers responding to valid legal requests. The Evolving Timeline of Crypto Asset Security The journey to this point has been incremental. In the early 2020s, freezing actions were rare and often reactive. The period from 2023 onward marks a deliberate shift towards proactive, data-driven compliance. This timeline correlates with increased information-sharing between crypto entities, traditional banks, and international law enforcement. Major investigations into cyber-heists, ransomware payments, and sanction evasion schemes have provided the legal basis for many of these freezes. For everyday users and institutional investors, this evolution directly impacts trust. The ability to recover or neutralize stolen funds increases the security proposition of using stablecoins for legitimate transactions. Moreover, it assists regulators in drawing clearer lines between the technology itself and its misuse, potentially paving the way for more nuanced and supportive legislation. Understanding the Broader Impact on Blockchain Ecosystems This enforcement activity has tangible effects beyond the frozen wallets. Firstly, it validates the use of blockchain analytics software from firms like Chainalysis and Elliptic, whose tools trace the movement of funds. Secondly, it pressures cryptocurrency exchanges to enhance their own Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks to avoid receiving tainted assets. Exchanges that fail to comply risk losing their banking partnerships and facing regulatory penalties. The action also sparks debate about the core principles of cryptocurrency. Proponents of absolute censorship-resistance view freezing as an antithetical overreach. Meanwhile, pragmatists argue that such measures are essential for the integration of digital assets into the global financial mainstream. This tension will likely define regulatory discussions for years to come. Conclusion Tether’s decisive action to freeze $3.3 billion in USDT linked to illicit funds marks a watershed moment for cryptocurrency compliance. The staggering scale of the intervention, especially when contrasted with Circle’s $109 million freeze, highlights both the challenges and capabilities within the stablecoin ecosystem. This trend underscores a maturation phase where major issuers are actively deploying advanced tools to secure their networks and collaborate with global authorities. As the industry evolves, the balance between innovation, privacy, and security will continue to be tested, with actions like these setting critical precedents for the future of digital finance. FAQs Q1: What does it mean for Tether to “freeze” USDT?Tether, as the centralized issuer, can add specific wallet addresses to a blacklist. This action uses the stablecoin’s smart contract to prevent any USDT tokens held in those wallets from being moved or spent, effectively locking them in place. Q2: Why did Tether freeze so much more than Circle?The primary reason is USDT’s significantly larger market share and circulation, making it a bigger target. Differences in where the stablecoins are traded (e.g., on more global vs. more U.S.-centric exchanges) and the evolution of their respective compliance strategies also contribute to the disparity. Q3: Does this mean my USDT can be frozen?For the vast majority of users engaging in legitimate activity, the risk is extremely low. Freezes typically target wallets directly linked to criminal investigations, sanctions lists, or identified as receiving proceeds from hacks or scams. Q4: Are frozen funds permanently lost?Not necessarily. Freezing immobilizes the assets. Their ultimate fate depends on legal proceedings. They could be returned to victims of theft, seized by authorities, or in some cases, remain frozen indefinitely. Q5: What blockchains are included in these freeze statistics?The reported $3.3 billion figure for Tether and $109 million for Circle specifically references funds frozen on the Ethereum blockchain. Both stablecoins exist on other networks (like Tron for USDT), so the total frozen across all supported blockchains is higher. Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.