Korea's stablecoin legislation, Interactive Brokers' plans, and PayPal integration: How Crypto Assets are reshaping the global financial landscape?

In the rapidly changing landscape of global finance, Crypto Assets are integrating into the mainstream at an unprecedented speed. From various governments actively promoting stablecoin regulation, to TradFi giants exploring Crypto Assets services, and payment leaders integrating Crypto Assets for cross-border payments, a series of significant developments indicate that Crypto Assets are moving from the margins to the center, profoundly impacting the global financial structure. This article will delve into the stablecoin legislative race in South Korea, Interactive Brokers' stablecoin program, and the latest advancements by PayPal in transforming cross-border payments through Crypto Assets integration, revealing how Crypto Assets are reshaping our financial future.

South Korea's Stablecoin Legislation Competition Heats Up: Exploration and Balance of Regulatory Framework

The South Korean National Assembly witnessed the accelerated regulatory process of the fiercely competitive stablecoin bill. This shows that the South Korean government maintains an open attitude towards the development of stablecoins while also being aware of their potential risks, and therefore actively seeks to establish a comprehensive regulatory framework.

Democratic Party member Andou Jie proposed a comprehensive legislation requiring issuers to have a capital of 5 billion won. His bill emphasizes achieving currency foreign exchange characteristics through interdepartmental coordination, and establishes a collaborative governance involving the Ministry of Economy and the Bank of Korea. This proposal focuses on the monetary governance of stablecoin, ensuring its stability and compliance.

The proposal by the National Power Party's Jin En: simultaneously submitted competing regulations that allow stablecoin interest payments. Her legislation stipulates information disclosure obligations, including white papers and product descriptions. This proposal emphasizes market innovation incentives, hoping to attract more participants through stablecoin interest payments.

The proposal from Democratic Party colleague Min Byeong-deok: Previously presented in June, the "Digital Asset Basic Law". His comprehensive framework proposes the establishment of a Presidential Digital Asset Committee and the first approval in South Korea for the issuance of a stablecoin based on the Korean won. Min Byeong-deok's legislation calls for the capital threshold for stablecoin issuers to be lowered to 500 million KRW, demonstrating his encouragement for market development.

These key policy differences are reflected in interest payment permissions and regulatory scope. Ahn Jung-geun focuses on monetary governance, while Kim Jong-un emphasizes market innovation incentives. South Korea is accelerating the push for bipartisan legislative competition to comprehensively promote digital asset regulation, thereby positioning itself as a regional fintech leader.

Interactive Brokers Plans to Launch Stablecoin: A Cautious Layout in Traditional Finance

According to a report by Reuters, Interactive Brokers is considering launching stablecoin for clients, joining the ranks of large financial firms betting on digital tokens. Billionaire founder Thomas Peterffy revealed that they are considering providing 24/7 stablecoin financing services for brokerage accounts. The company, which has a market capitalization of $110 billion, is currently collaborating with Paxos and investing in Zero Hash to provide Crypto Assets trading services.

Interactive Brokers is exploring allowing clients to use third-party stablecoins, depending on the issuer's reputation. The platform is committed to providing instant asset transfers for commonly used Crypto Assets. Although the trend of clients adopting Crypto Assets is positive, Peterffy maintains a cautious stance on the fundamental value of cryptocurrencies. This Greenwich-based company manages 3.87 million accounts, with an annual growth rate of 32%.

The actions of Interactive Brokers reflect the cautious and pragmatic attitude of traditional financial institutions in the field of Crypto Assets. Although there are still doubts about the value of Crypto Assets, the trends in market demand and technological development are prompting them to gradually explore and offer related services to meet the growing needs of their customers.

PayPal's Integration with Crypto Assets Revolutionizes Cross-Border Payments: Cost Reduction and Global Coverage

PayPal has launched its Pay with Crypto service, allowing merchants to accept over 100 types of Crypto Assets and enjoy up to 90% discount on transaction fees. The platform connects digital wallets like MetaMask with the Crypto Assets market valued at over $3 trillion. CEO Alex Chriss emphasized that the near-instant settlement capability eliminates barriers to global business growth.

Compared to traditional international credit card processing, the transaction fee rate for this service is only 0.99%. US merchants can access over 650 million crypto assets users worldwide, while holding PYUSD can earn a 4% yield. PayPal's integration covers 90% of the total market value of crypto assets, supporting seamless conversion between fiat and crypto.

This release comes after PayPal World announced the integration of five major digital wallets onto the same platform. The company collaborates with Fiserv to expand the global adoption of stablecoins, making PayPal a leader in borderless business innovation. Pay with Crypto will be launched to U.S. merchants in the coming weeks, which will fundamentally change the international payment infrastructure. The rollout of this service will undoubtedly significantly reduce the costs and time of cross-border payments, bringing revolutionary changes to global business activities.

Surge in China's Money Supply Indicates Inflation Risks: Macroeconomic Background

According to reports from Kobeissi Letter, China's M1 money supply increased by 4.6% year-on-year, reaching a record 16 trillion dollars. This is a significant acceleration compared to 2.3% in May and 0.4% at the beginning of the year. China's monetary base is currently twice that of the United States' 8 trillion dollars M1 supply, accounting for 33% of the G10 (G10) total liquidity. Economists view the expansion of the money supply as a leading indicator of inflation, suggesting that global price pressures may rise in the future.

This macroeconomic data provides important context for the development of global financial markets. In an environment where inflation expectations are rising, stablecoins, as a type of digital asset pegged to fiat currency, will attract more attention for their stability and efficiency, and may also become a tool for addressing inflation risks.

From South Korea actively promoting stablecoin regulation, to Interactive Brokers exploring client stablecoin services, and then to PayPal fundamentally changing cross-border payments through the integration of encryption, these developments collectively depict a picture of Crypto Assets increasingly integrating into mainstream finance. Stablecoins, as a bridge connecting TradFi and the encryption world, are becoming increasingly important. With technological advancements and the improvement of regulatory frameworks, Crypto Assets will play an increasingly important role in the future global financial landscape, providing individuals and businesses with more efficient and convenient financial services.