Stablecoins in 2025: Global Regulation and Institutional Shifts
Regulatory clarity is shaping the next phase of stablecoin adoption, with governments and financial institutions worldwide implementing stricter frameworks to ensure market stability and investor protection. The European Union’s MiCA regulation has introduced formal licensing requirements, while the United States is actively drafting legislation to define stablecoin governance. Japan is refining its regulatory approach, balancing innovation with oversight. These developments reflect a broader global shift — as stablecoins become increasingly integrated into the financial system, selecting a fully regulated and compliant issuer is more critical than ever.
Global Regulatory Developments
Europe’s MiCA Framework
The Markets in Crypto-Assets Regulation (MiCA) took full effect on December 30, 2024, and provides a standardized regulatory framework for stablecoin issuers across the EU. To ensure consistent enforcement, the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) are developing technical implementation standards, helping to harmonize oversight across member states. In February 2025, ESMA launched a public consultation on qualification standards for Crypto-Asset Service Providers (CASPs), focusing on strengthening consumer protection and market integrity.
MiCA’s clear rules have also positioned euro-backed stablecoins as potential challengers to the dominance of U.S. dollar stablecoin options. As financial institutions adapt to the new landscape, stablecoin users will increasingly differentiate issuers based on regulatory compliance and transparency — crucial to ensuring long-term stability and legal security.
U.S. Policy Shifts and Legislative Developments
In January 2025, the SEC rescinded Staff Accounting Bulletin 121 (SAB 121), removing barriers that previously categorized crypto assets under custody as bank liabilities. This shift paved the way for traditional financial institutions to offer stablecoin services, reducing compliance burdens and expanding institutional participation.
Meanwhile, legislative momentum is building. In February 2025, multiple stablecoin-related bills were introduced in Congress, including the GENIUS Act, the STABLE Act, and a discussion draft led by Representative Maxine Waters. These proposals differ in their approach to federal versus state-level regulation, issuance requirements, and consumer protection measures. However, the collective focus on defining a legal framework for stablecoins signals growing recognition of their role in the financial system.
For businesses and individuals, the evolving U.S. regulatory landscape highlights the importance of selecting issuers that proactively comply with emerging standards. As oversight becomes more structured, compliance will play a pivotal role in determining which stablecoins gain institutional acceptance.
Read more about the GENIUS Act: https://medium.com/gmo-z-com-trust-company/the-genius-act-and-its-implications-for-stablecoin-issuers-gmo-trusts-regulatory-edge-bd2ad30dddd9
Read more about the discussion drafts: STABLE Act, Waters’discussion draft
The UK’s Regulatory Advancements
The UK’s regulatory framework for stablecoins is progressing, with 2025 marking a pivotal phase in shaping legal oversight. The Financial Conduct Authority (FCA) released its Crypto Roadmap on November 26, 2024, outlining a timeline for regulatory discussions, consultations, and legislative refinement.
As part of this roadmap, the UK government aims to engage with businesses on crypto-asset regulations as early as 2025, with a finalized framework expected by 2026. This staged approach suggests that while the UK is moving toward a structured regulatory environment, full implementation remains a longer-term objective compared to the EU’s already-enforced MiCA framework.
To further develop expertise in digital asset regulation, the Bank of England and the New York Department of Financial Services (NYDFS) have launched a regulatory exchange program. This collaboration enables both institutions to share insights on stablecoin oversight and emerging payment systems, reinforcing efforts to align international best practices.
Japan’s Strengthened Oversight and Market Incentives
Japan has reinforced its regulatory position on stablecoins and digital assets to ensure that innovation aligns with user protection. In February 2025, the Financial Services Agency (FSA) approved a report from the Working Group on Payment Systems and Financial Innovations, which sets stricter compliance requirements for electronic payment instruments, including stablecoins. This framework enhances anti-money laundering (AML) measures, financial security, and consumer protections while maintaining flexibility for market growth.
Discussions in Japan have also extended to crypto taxation and financial product classifications. Proposals include lifting the ban on Bitcoin exchange-traded funds (ETFs) and reducing the crypto transaction tax rate from 55% to 20%, aligning it with stock investments. These reforms could lower barriers to digital asset investment if enacted, indirectly boosting stablecoin adoption as a primary transactional asset.
Beyond individual national efforts, global financial bodies emphasize the need for a standardized approach to stablecoin regulation. The Financial Stability Board (FSB) has urged regulators to establish clear guidelines on reserve quality, redemption rights, and risk management.
As structured regulation becomes the norm, stablecoins issued under strong compliance frameworks will become the preferred choice for institutional and retail users. The global regulatory consensus reflects the importance of choosing stablecoins that adhere to strong governance standards to ensure reliability, legal clarity, and long-term market stability.
Stablecoins Market and Institutional Integration
Payments and Settlements: A Cost-Saving Opportunity
The growing push for regulatory compliance is not only fostering trust but also unlocking substantial cost efficiencies. A study by Juniper Research forecasts that by 2028, businesses could save up to $26 billion globally through stablecoin adoption — an increase of 73% from the projected $15 billion in 2025. These savings primarily stem from reduced transaction costs and improved cross-border payments and financial operations efficiency.
Stablecoins are already gaining momentum in global remittances, offering faster settlements and lower fees compared to traditional banking systems. Fintech companies and payment processors are integrating stablecoins into remittance networks, making it easier for businesses and individuals to bypass costly intermediaries. As regulatory standards solidify, stablecoins may further integrate into financial infrastructures, providing seamless international transactions with enhanced transparency and compliance.
Growing Institutional Involvement in Digital Asset Custody
Meanwhile, traditional financial institutions are deepening their involvement in digital asset custody services. The world’s top banks have already made strategic moves in crypto infrastructure.
Recent reports indicate that BNY Mellon is looking to expand its custody services beyond Bitcoin (BTC) and Ethereum (ETH), while State Street and Citi are actively exploring crypto custody solutions for institutional clients. Citi’s recent pilot projects on asset tokenization further illustrate how traditional institutions experiment with blockchain-based financial products.
Increasing involvement in regulated digital asset custody creates a stronger foundation for stablecoin adoption. As more institutions establish secure custody solutions, stablecoins — being a regulated, liquid, and fiat-pegged digital asset class — could act as a preferred on-chain settlement and transactional asset for institutional use cases.
The Future of Stablecoins and Compliance
With MiCA in the EU, legislative action in the U.S., and Japan’s evolving oversight framework, stablecoins are entering a new phase of structured regulation. Financial institutions show increasing interest in crypto, and regulators worldwide prioritize consumer protection, risk management, and financial stability.
For businesses and investors, selecting a stablecoin issued under a trusted regulatory framework is no longer optional — it is a fundamental requirement. As a stablecoin issuer supervised by the New York State Department of Financial Services, we offer stablecoins that meet strict compliance standards. The regulatory requirements ensure our stablecoins are provided with transparency and trust, which can serve as a secure and compliant asset for institutional and transactional use.
Looking ahead, regulatory frameworks will continue shaping stablecoin adoption, influencing everything from market trust to financial integration. As governments formalize oversight structures, choosing a fully compliant stablecoin will become a defining factor in long-term usability and investment security.
About GMO-Z.com Trust Company
GMO Trust connects traditional finance and blockchain technology for everyone. We issue GYEN, the world’s first regulated Japanese Yen stablecoin, and ZUSD, our trusted U.S. Dollar stablecoin. Visit our website to learn more.
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