Payments Monthly · 2026-09Monthly
PAY.NEWS
Tightening stablecoin regulation and advancing tokenized settlement
This issue covers 1 September 2026 through 30 September 2026. Stablecoin regulation was the central theme: the Federal Reserve sought comment on reserves, capital, risk management, custody, and application procedures for banks issuing payment stablecoins under the GENIUS Act, and proposed requiring full backing with high-quality assets such as short-term Treasury bills to ensure redemption at par. The UK FCA opened authorization applications for cryptoasset businesses, strengthening oversight of consumer protection, client assets, and market integrity while continuing to crack down on unregistered peer-to-peer crypto trading. On the infrastructure front, Eurosystem launched Pontes, enabling wholesale tokenized assets to settle through central bank money, with a gradual expansion toward full implementation in 2028. Payment products continued to introduce stablecoin, agent wallet, and business virtual account capabilities, while Australia announced a ban on card payment surcharges and changes to interchange fee caps.
Stablecoin Regulation and Applications
Section overviewThe Federal Reserve proposed two regulatory frameworks around the GENIUS Act, requiring payment stablecoins to be fully backed by qualifying assets such as short-term Treasury bills, and establishing rules for capital, risk management, custody, and issuance applications. Meanwhile, Citi and Coinbase expanded their cooperation on fiat and digital payments for businesses and consumers, while Stripe made OUSD the default stablecoin and integrated it into multiple products.
Federal Reserve proposes stablecoin rules requiring issuers to fully back stablecoins with Treasury bills and other high-quality assets
The Federal Reserve proposed stablecoin rules requiring issuers to fully back stablecoins with high-quality liquid assets such as Treasury bills, while imposing capital requirements and risk management standards on issuing institutions. The rules also cover the process for banks to apply to issue stablecoins and requirements for Federal Reserve-regulated institutions that custody reserve assets. The Federal Reserve stated that a stablecoin is stable only if it can be reliably redeemed at par under all conditions. The proposal will be open for a 60-day comment period after publication in the Federal Register.
Federal Reserve seeks comment on two regulatory proposals for banks issuing payment stablecoins under the GENIUS Act
The Federal Reserve opened a public comment period on two regulatory proposals for banks issuing payment stablecoins under the GENIUS Act. The first would require regulated issuers to fully back stablecoins with eligible reserve assets such as short-term Treasury bills and establish standardized capital requirements, risk management standards, and custody rules. The second would establish a tailored application process for banks seeking to issue stablecoins, requiring the submission of business plans and financial information and setting out procedures for appeals, hearings, and final decisions. The comment period will close 60 days after publication in the Federal Register.
Fintech News09.29Citi and Coinbase expand cooperation, connecting fiat and digital payments for businesses and consumers
Citi and Coinbase announced an expanded partnership featuring two initiatives: Coinbase selected Citi’s Virtual Account Wallet (BaaS) to support Coinbase Virtual Accounts.
Stripe BlogFirst party09.30Stripe makes OUSD the default stablecoin and integrates it into multiple payment products
Stripe announced support for OUSD across its products and made OUSD the default stablecoin configuration. Businesses can use Treasury to receive, hold, send, and spend OUSD, as well as use products including Issuing, Global Payouts, Crypto Onramp, and Payments. OUSD is now supported on Base, Ethereum, Solana, and Tempo, while Stripe will continue to allow users to use other stablecoins.
Pontes connects tokenized markets
Section overviewEurosystem launched Pontes, connecting distributed ledger networks with TARGET settlement services and enabling wholesale tokenized assets to settle in central bank money. The solution builds on previous pilot experience, offers limited functionality initially, and is planned to gradually expand its operating hours and service capabilities, with full implementation expected in 2028. The European Central Bank also plans to settle investments in tokenized securities through Pontes.
Payments Cards & Mobile09.23European Central Bank launches Pontes, enabling tokenized assets to settle in central bank money
The European Central Bank launched Pontes as a bridge between distributed ledger networks and Eurosystem TARGET settlement services, enabling wholesale tokenized asset transactions to settle in central bank money. The service draws on the experience of 64 participants, more than 40 trials, and transactions exceeding €1.59 billion in 2024. It offers limited functionality initially, with full implementation targeted for 2028.
European Central BankFirst party09.21Eurosystem launches Pontes to provide central bank money settlement for wholesale tokenized asset transactions
Eurosystem launched Pontes, enabling wholesale transactions in tokenized assets to settle in central bank money. Pontes is the first initiative under Eurosystem’s tokenized finance strategy. It initially provides a set of core services, with enhanced functionality and longer operating hours to be added gradually; full implementation is expected in 2028. The first market participants and DLT operators have completed onboarding and can use the service immediately, while more participants are expected to connect in the coming months.
European Central BankFirst party09.21European Central Bank begins investing its own funds in tokenized securities, with settlement through Pontes in central bank money
The European Central Bank began preparations to invest part of its own funds in tokenized securities, with transactions settled in central bank money through Pontes, Eurosystem’s DLT settlement solution. Initial investments will focus on euro-denominated securities issued by euro area governments and European supranational institutions. The Executive Board will determine the operational details and timing after the preparatory work is complete.
UK crypto regulation takes effect
Section overviewThe FCA opened applications for authorization of cryptoasset businesses, aiming to bring businesses operating locally under a comprehensive regulatory framework covering consumer protection, client assets, market integrity, and financial resilience. The FCA is also investigating potential anti-money-laundering control deficiencies at a securities firm and working with law enforcement to crack down on unregistered peer-to-peer crypto trading venues, showing that regulation is expanding from institutional development to on-site enforcement.
FCA opens regulatory authorization applications for cryptoasset businesses
The FCA announced that cryptoasset businesses can apply for authorization starting today. For the first time, the UK will bring cryptoasset businesses operating locally under comprehensive FCA regulation covering consumer protection, client asset protection, market integrity, and financial resilience. Businesses intending to continue operating in the UK should apply by 28 February 2027. The new regulatory regime will take effect on 25 October 2027. Authorization is not automatic; businesses must demonstrate that they meet FCA requirements.
FCA investigates Euro Exchange Securities UK Ltd
The FCA is investigating whether Euro Exchange Securities UK Ltd violated the MLRs between 1 February 2020 and 4 June 2026. The investigation concerns whether it adequately assessed money-laundering risks and established controls for customer due diligence, ongoing monitoring, internal governance, recordkeeping, and escalation of reporting. The FCA had previously required the company to stop providing regulated electronic money and payment services and, through the courts, appointed interim and special administrators. The FCA stated that the investigation has not reached a conclusion.
FCA and partner agencies raid three suspected illegal peer-to-peer crypto trading venues in London
The FCA, HMRC, and the Metropolitan Police took action at three locations in London suspected of facilitating illegal peer-to-peer crypto trading and issued cease-and-desist letters to all of them, requiring them to stop the suspected illegal crypto businesses. Conducting peer-to-peer crypto trading commercially in the UK requires appropriate registration, and no FCA-registered peer-to-peer crypto businesses are currently operating. The action was taken on 10 September 2026 under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.
FCA outlines next-generation market infrastructure regulatory direction: from experimentation to scaled adoption
FCA Chief Executive Nikhil Rathi said at a TheCityUK dinner that the UK must move from experimentation to adoption and create the conditions for emerging technologies such as tokenization to scale safely in wholesale markets. The FCA has authorized HSBC Orion to provide real-time digital securities custody services, plans to finalize the stablecoin regime before summer, and is working with the Bank of England to publish a tokenization roadmap while consulting on protection rules for related tokenized investment assets.
Payment Product and Infrastructure Adjustments
Section overviewStripe added incremental authorization, spending insights, and purchase protection to the Link agent wallet, improving spending-limit management and the transaction experience for agent shopping. Australia will prohibit surcharges on EFTPOS, Mastercard, and Visa card payments from October 2026 and adjust interchange fee caps for domestic and foreign-issued cards. US federal regulators, meanwhile, updated third-party risk management guidance.
Stripe BlogFirst party09.29Stripe adds incremental authorization, spending insights, and purchase protection to Link agent wallet
Stripe introduced three improvements to the Link agent wallet: incremental authorization allows an agent to increase the approved amount when the final price exceeds the original authorization, avoiding a new order; spending insights powered by Financial Connections can analyze transaction data from more than 12,000 financial institutions to improve recommendations; and eligible transactions can receive free purchase protection. Over the past month, purchases made through Link increased 38-fold.
Checkout.com BlogFirst party09.26Australia’s 2026 card payment reforms: what merchants need to know about surcharge-free rules and interchange fee cap changes
The Reserve Bank of Australia (RBA) published the conclusions of the third stage of its review of merchant card payment costs and surcharging. From 1 October 2026, EFTPOS, Mastercard, and Visa will implement a ban on card payment surcharges and lower domestic interchange fee caps. From 1 April 2027, a 1% interchange fee cap will apply to foreign-issued cards.
Four US federal banking regulators seek comment on third-party risk management guidance
The FDIC, Federal Reserve, NCUA, and OCC jointly sought comment on third-party risk management guidance. The guidance is principles-based and nonbinding, and the final version will replace existing guidance. The Federal Reserve separately sought comment on supporting guidance for community banks and issued a joint statement on community banks’ relationships with core service providers. The comment period is 60 days after publication in the Federal Register.