Latest news with #Stablecoins
Crypto Insight
11 hours ago
- Business
- Crypto Insight
From Bank to Broker to Crypto: Infrastructure Playbooks for Regulated Companies Entering Digital Assets
The EU's MiCA framework is creating a predictable environment for crypto services. Stablecoins are being used for payments, settlements, and cross-border operations. Tokenized assets are being tested by banks and asset managers. As a result, banks, brokers, and fintech platforms are planning to launch crypto services. This can include custody, trading, or stablecoin rails. But these companies work under strict rules. They need infrastructure that meets high standards for uptime, access control, compliance, and reporting. A simple API or SDK is not enough. What they need is a full infrastructure strategy. This article outlines how regulated companies can add crypto services without increasing their risk. Why regulated companies are moving into crypto There are several reasons why traditional financial companies are building crypto services now: MiCA gives legal clarity in the EU Stablecoins like USDC are becoming tools for fast payments Clients are asking for access to crypto products Tokenized assets are gaining interest from institutions The goals are different from startups. Regulated firms need long-term infrastructure that can handle audits, reporting, and operations at scale. Common entry points for crypto integration Regulated companies usually begin their crypto journey by focusing on one or two specific services, depending on their market and compliance readiness. One common starting point is custody. Firms that offer custody focus on secure wallet infrastructure, enabling users to deposit and withdraw assets safely. This creates a foundation for other services, such as staking or tokenized investments. Some companies prioritize trading access. These platforms allow users to buy and sell cryptocurrencies but avoid handling custody by keeping the assets off-chain or locked within internal systems. This limits their exposure to custody-related risks while still meeting customer demand. Another growing use case is stablecoin integration. Payment firms and cross-border platforms are using assets like USDC or EURC to provide faster and more cost-effective alternatives to traditional rails like SWIFT or SEPA. Others are entering crypto through tokenized asset offerings, where banks and brokers begin experimenting with digital versions of bonds or private equity instruments. Each approach requires a tailored infrastructure stack and a different level of compliance maturity. But all of them depend on having reliable custody, transaction logic, and audit controls from the beginning. Core infrastructure requirements When a regulated company adds crypto to its platform, the infrastructure must meet the same operational and legal standards as any other financial system. Custody systems should be built on secure methods like MPC or HSM, and must include fine-grained control over who can initiate and approve transactions. Access needs to be managed by role, with multi-level approvals and detailed permissions. Logging and audit trails must be available in real time. Every transaction, user action, or system change needs to be tracked and stored securely, with full export capabilities for regulators or internal teams. Uptime is also critical. Crypto services should match the reliability of traditional trading or banking infrastructure, which means deploying redundancy, health checks, and fallback systems to minimize service interruptions. Beyond the backend, companies also need tools for real-time monitoring. Dashboards that track delays, performance, or anomalies help operations teams respond quickly. And when working with infrastructure vendors, transparency is essential. Regulated companies need visibility into how the platform works, what its performance history looks like, and how it supports ongoing compliance. Compliance is a technical requirement Many crypto compliance rules are enforced through software. Regulated companies must understand the infrastructure requirements behind these rules. Travel Rule When users send crypto to external wallets, the system needs to detect when to apply the Travel Rule. This means adding metadata, identifying the receiving service, and preventing non-compliant transfers. MiCA enforcement MiCA asks for clear control over custody, user asset management, and risk policies. These controls must be built into the infrastructure. Manual policies are not enough. Regional requirements Some regions require local data storage or restrict where wallets can be accessed from. This must be supported in system design and deployment. At Scalable Solutions, we build compliance into the platform. Features like transaction screening, withdrawal checks, and audit logs are not optional add-ons. They are part of the standard architecture. What to build in-house and what to use from vendors Companies that want to offer crypto services need to decide which parts of the infrastructure they will build themselves and which parts they will source from vendors. In most cases, it makes sense to keep control over the user interface, onboarding experience, internal dashboards, and risk or compliance rules that are specific to their business. At the same time, core infrastructure such as key custody, blockchain node access, transaction screening, and monitoring tools can be more efficient and secure when provided by specialized vendors. The key is to work with providers who offer transparency, regulatory readiness, and clear service-level commitments. Systems that don't provide access to logs, lack proper client separation, or operate as black boxes can create serious operational and compliance risks. When choosing a vendor, companies should avoid platforms that: Don't share logs or audit data Use shared infrastructure without strong isolation Have no proof of regulatory readiness Can't meet SLA and uptime requirements Lessons from the field What didn't work A European broker launched a crypto service using a basic white-label backend. The system gave internal staff access to wallets without proper role separation. When regulators asked for logs, the company couldn't provide them. The service was shut down after a few months. What worked A payment platform added USDC payouts using vendor-based custody and compliance modules. They kept control over AML policy logic and used modular infrastructure. The service launched quickly and passed a regulatory audit within six months. Conclusion For regulated companies, crypto is no longer out of reach. But it must be added with the same care as any other financial service. The infrastructure must support controlled key management, transaction screening, role-based access, logging and audit tools and regional deployment strategies – all in one, simply manageable source. Source:
Yahoo
a day ago
- Business
- Yahoo
Crypto for Advisors: Crypto Week: What Does it Mean for Advisors?
Happy Crypto Week! In today's Crypto for Advisors newsletter, Beth Haddock of Warburton Advisers provides a mid-year check-in on the advancements in the crypto industry and what this means for advisors. Then, Chris Jenkins of Pocket Networks Foundation answers questions about regulatory changes for investors in Ask an Expert. – Unknown block type "divider", specify a component for it in the ` option Crypto Week: What Does it Mean for Advisors? Now well into the second half of 2025, crypto's trajectory is clear: it's evolving from excitement into core financial infrastructure. Stablecoins are gaining legitimacy, regulators are actively engaging with the industry, and persistent cybersecurity threats persist. These shifts require advisors to reassess strategies, educate clients, and prepare for a more structured and scrutinized market. Crypto Week captured the momentum and underscored a key message: financial professionals must understand the role of crypto in the broader system and decide how to engage responsibly. Three developments stand out. 1. Stablecoins: From Fringe to Financial Infrastructure Stablecoins are moving firmly into the financial mainstream. This week's anticipated vote on the proposed GENIUS Act, coupled with prior statements from the SEC, Federal Reserve, and FDIC, signals a turning point. The Act outlines a regulatory regime governing reserves, redemption rights, and public disclosures, bringing long-awaited clarity to compliant issuance. Institutional adoption is accelerating. Major banks are developing stablecoin or tokenized alternatives. Corporate treasurers are piloting stablecoins for payments and working capital management. Cross-border payments — historically a pain point — with stablecoins can be faster, cheaper, and more transparent. For advisors, this represents a fundamental shift in financial infrastructure. Exposure to regulated stablecoins could soon be as routine as managing money market allocations. As infrastructure shifts, liquidity strategies and treasury operations will evolve. Stablecoins are no longer fringe — they're becoming foundational. 2. A New Era of SEC Engagement & Institutional Scaling After years of friction, the SEC has taken a more proactive — but still cautious — approach. Through public roundtables, the agency is engaging stakeholders to better understand digital assets, staking, custody, and DeFi. These are not enforcement forums; they are opportunities to shape policy. Commissioners Peirce and Uyeda have emphasized the importance of collaboration and regulatory clarity. Under its Crypto 2.0 initiative, the SEC's Crypto Taskforce has published guidance on decentralized protocols, exchange-traded products, and custody standards. However, this shift doesn't mean due diligence is easier — it means it matters more. The SEC continues to examine how registrants are managing risk, controls, and disclosures. Growth from players like Robinhood and JPMorgan signals institutional scale, but not necessarily fiduciary alignment. Advisors must anchor diligence in the core duties of loyalty and care. This includes verifying the distinction between tokenized wrappers and underlying assets, understanding conflicts of interest, and assessing whether operations align with regulatory expectations. What appears compliant today could be scrutinized under future SEC leadership or litigation. 3. Security and Responsible Innovation As regulatory frameworks mature with efforts like the GENIUS Act and anticipated market structure reforms, misconduct persists. From AI-generated scams to pump-and-dump schemes, familiar fraud risks have evolved, often targeting less sophisticated investors or exploiting cybersecurity gaps. The SEC and CFTC continue to issue investor alerts, focusing not only on product design but also on marketing practices, cybersecurity, and fraud controls. The bar is rising—and firms that fail to meet it risk reputational damage and enforcement action. This creates a leadership opportunity. Advisors can protect clients by minimizing conflicts, applying rigorous due diligence, and steering capital toward products with real utility, transparent governance, and robust security protocols. This includes evaluating how incentives are structured and whether operational resilience is built into platforms. In today's environment, overlooking cybersecurity, governance, or fraud red flags isn't just careless — it may be seen as enabling misconduct. From Innovation to Trust The second half of 2025 marks a shift from momentum to maturity for the crypto industry. With regulatory clarity improving and institutional adoption rising, the groundwork is being laid for a more resilient and trustworthy financial system. Advisors who stay informed, ask hard questions, and embed client-first principles into their digital asset strategies will lead the transition toward responsible innovation. This isn't just about early adoption — it's about building lasting trust in the next generation of finance. - Unknown block type "divider", specify a component for it in the ` option Ask an Expert Q. Beyond the disbanding of the National Cryptocurrency Enforcement Unit, what changes in enforcement priorities are affecting investors? A. The stablecoin reserve requirements make sure that issuers actually have the assets needed to back the stablecoins being held, and giving stablecoin holders priority recovery in the case of insolvency adds a significant layer of confidence. Q. How should advisors around the world look at US regulatory changes and the effect on their businesses and clients' money? A. There is finally some much-needed clarity emerging around how to approach digital assets for investment. No one wants to operate in a high-risk environment where there is the chance of sudden, unexplained losses. Degens may accept the risk of rug pulling, but institutional investors will not. This opens up digital asset investing to the mainstream. Q. Are there any categories of tokens that benefit more than others with the current administration A. Tokens which fit easily into institutional financial frameworks, and their underlying utility tokens, will benefit strongly from the continuing emergence of institutional adoption. Q. Are the regulatory changes around digital assets helping to guarantee investor safety? A. Frameworks are being established that are similar in nature to the protections offered to consumers in traditional banking, thereby helping to increase investor safety across the board. Privacy tokens may continue to face regulatory headwinds as enforcement agencies seek transparent reporting and accounting features to ensure compliance. - Unknown block type "divider", specify a component for it in the ` option Keep Reading Bitcoin reached a new all-time high of just over $123,000 this week. Ripple applies for Charter Bank License in U.S. U.S. federal agencies provided further clarifications for banks to offer crypto services and custody. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fox News
a day ago
- Business
- Fox News
Trump vows to make US ‘crypto capital of the planet,' signs GENIUS Act into law
President Donald Trump signed into law the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act Friday — a landmark piece of legislation that establishes federal regulations surrounding digital currency. Trump recalled ahead of signing the bill how he previously vowed to make the U.S. the "crypto capital of the planet" during a keynote address during a bitcoin conference in Nashville, Tennessee, in July 2024, where he said that regulations his administration would implement would be "written by people who love your industry, not hate your industry." "I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world," Trump said Friday. "And that's what we've done. And under the Trump administration this is only going further." Stablecoins are a form of digital currency tied to a stable asset like gold or the U.S. dollar, which aims to keep their prices more consistent. "Just as I promised last year, the GENIUS Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoin," Trump said Friday. "This could be perhaps the greatest revolution in financial technology since the birth of the internet itself." Included in the GENIUS Act are provisions requiring monthly public disclosure of reserve competition, as well as annual audited financial statements for issuers with more than $50 billion in market capitalization, according to the Senate Banking Committee that spearheaded the legislation. The House passed the GENIUS Act Thursday by a 308–122 vote, after the measure cleared the Senate in June by a 68–30 margin. "For far too long, America's digital assets industry has been stifled by ambiguous rules, confusing enforcement and the Biden administration's anti-crypto crusade," Majority Whip Tom Emmer, R-Minn., said during a press conference Thursday. "But President Trump and this Congress are correcting course and unleashing America's digital asset potential with historic, transformative legislation." Despite the bipartisanship and support from a host of Democrats, the legislation didn't pick up votes from all members of the president's party. Twelve Republicans voted against the measure, which has attracted scrutiny from lawmakers like House Financial Services Committee ranking member Rep. Maxine Waters, D-Calif., due to conflict of interest concerns as Trump has promoted a digital currency called $TRUMP. "By passing this bill, Congress will be telling the world that Congress is OK with corruption, OK with foreign companies buying influence, and OK with criminals buying Trump coins to seek pardons and beneficial treatment," Waters said on the House floor Thursday. In addition to the GENIUS Act, the House also passed two other measures related to cryptocurrency Thursday: Digital Asset Market Clarity Act (CLARITY Act) to install some additional regulatory framework for digital assets, and the Anti-CBDC Surveillance State Act, which aims to stop the Federal Reserve from central bank digital currency (CBDC) directly to individuals and jeopardize their privacy.
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Why Banks Are on High Alert About Stablecoins
Stablecoins are poised to become a part of the mainstream financial system, and banks are on high alert about how the cryptocurrency could threaten their business. The House voted 308-122 Thursday to pass a bill that spells out some ground rules for stablecoins, which function as digital dollars in the wider crypto world. The Genius Act is now headed to President Trump, who has indicated he would sign it.
New York Times
a day ago
- Business
- New York Times
Crypto's $4 Trillion Moment
Andrew here. Crypto prices keep going up and up as the Trump administration and Washington have embraced the sector. We dive into what comes next. We're also looking at the implications of the 'reverse acqui-hire' phenomenon taking place in Silicon Valley. And we're talking about practical A.I. hacks with the C.E.O. of Chime. Is the sky the limit for crypto? President Trump could deliver a major boost to the crypto industry as soon as Friday, when he's expected to sign into law legislation to create new rules for so-called stablecoins. That, along with a potential move to permit American retirement accounts to invest in crypto, underscores just how much sway crypto companies hold in the Republican-led Washington. That's powering gains in the paper wealth of these businesses — including those tied to Trump himself. Crypto's overall market capitalization surpassed $4 trillion for the first time as digital currencies including Ether and XRP have continued to rise over recent days. Bitcoin, which earlier in the week broke past $122,000, is down only slightly. And shares in publicly traded crypto companies, including Coinbase and the stablecoin issuer Circle, are up in premarket trading as well. Want all of The Times? Subscribe.
