Payments Monthly · 2026-10Monthly
PAY.NEWS
Stablecoin Regulation and Payment Infrastructure Expansion
This issue covers October 1–31, 2026. Stablecoin regulation continues to become more tiered and jurisdiction-specific: the U.S. OCC finalized a regulatory framework for payment stablecoins, the EU designated USDC its first significant e-money token and required service providers to wind down exposure to stablecoins that do not comply with MiCA; Canada published draft stablecoin rules, while Russia advanced licensed trading and custody systems and tightened restrictions on individual P2P trading. On payment infrastructure, Mastercard, Visa, Stripe, and others expanded stablecoin payments, card issuance, and cross-border payouts, while European payment organizations established a cross-border interoperability network. Preparations for the digital euro pilot and issuance are progressing. Europe and Hong Kong are planning to move to T+1 settlement, and tokenized securities, collateral, and repo transactions are beginning to go live. Meanwhile, AML deficiencies at U.S. banks, cloud service disruptions, and restrictions on financial services have drawn regulatory and enforcement attention.
Diverging Stablecoin Regulation
Section overviewThe U.S. OCC clarified reserve, redemption, custody, capital, and reporting requirements for payment stablecoin issuers; the EBA designated USDC a significant e-money token, and ESMA required service providers to exit non-compliant stablecoins. Canada proposed one-to-one reserves and a ban on yield. Russia, meanwhile, is advancing trading and custody through licensed institutions and plans to restrict individual P2P transfers.
PYMNTS10.22OCC finalizes payment stablecoin regulatory framework, rules to take effect Jan 18
The OCC finalized rules governing payment stablecoin issuers within its jurisdiction, covering reserves, redemption, custody, risk management, capital, reporting, and supervision, effective Jan 18. The framework applies to subsidiaries of national banks and federal savings associations, nonbank issuers seeking federal approval, and certain foreign issuers. BSA, AML, and OFAC sanctions compliance requirements will be addressed through a separate rulemaking coordinated by the Treasury Department.
Fintech News Switzerland10.15EBA designates USDC the first significant e-money token under MiCA
The EBA designated USDC a significant e-money token under MiCA, making it the first to receive this status among the 45 EMTs currently notified in the EU. From 12 November 2026, the EBA will be directly responsible for the issuer’s own funds, reserve assets, liquidity, and recovery and redemption plans, while France’s ACPR will continue to oversee governance, qualifying holdings, fit-and-proper assessments, outsourcing, and conflicts of interest.
ESMA requires EU crypto firms to exit non-compliant stablecoins within three months
ESMA requires EU crypto firms to wind down their existing exposure to stablecoins that do not comply with MiCA by January 8, 2027, giving national financial regulators 90 days to supervise implementation. Individuals holding USDT are not directly prohibited from doing so, but EU service providers regulated under MiCA must stop providing access to it. They may, however, provide exit services such as liquidation, conversion, withdrawal, transfer, and custody.
Draft Canadian stablecoin rules propose banning yield and requiring issuers to hold reserves at banks
Canada published draft stablecoin rules in the Canada Gazette, proposing to prohibit issuers from providing holders with direct or indirect yield and to require non-bank issuers to hold reserves at banks. The draft also requires issuers to register, back tokens one-to-one with high-quality liquid assets, and redeem them at par. A 60-day public consultation has begun, and Finance Canada expects the framework to take effect in 2027.
Russia to halt individual P2P cryptocurrency trading in July 2027; 11 institutions licensed
The Central Bank of Russia clarified that P2P cryptocurrency transfers between individuals will be permitted only until July 1, 2027; after that, digital currencies must be transferred through approved custodial wallets. The Bank of Russia has authorized 11 institutions to conduct cryptocurrency trading, including Sberbank. At present, the only assets available to retail investors are Bitcoin, Ethereum, and Tether’s USDT.
Bank of Russia supports FSB access to private keys and customer data for licensed custodial wallets
The Bank of Russia said the FSB will have immediate access to the private keys of crypto wallets held by Russian residents and businesses with licensed custodians. From March 1, 2027, crypto exchanges, brokers, and digital custody platforms will also have to provide remote 24/7 data access, including customer communications and other records. In Russia, crypto assets must be held and used domestically through approved service providers. Self-custody wallets are effectively banned in the domestic market, but may be used for cross-border payments.
Scaling Stablecoin Payments
Section overviewMastercard and BVNK are connecting fiat and stablecoin holdings, conversions, and payments through a single API; Visa is incorporating stablecoins into Visa Direct commercial services; and Stripe is expanding stablecoin card issuance and global payouts. HSBC launched a Hong Kong dollar stablecoin on PayMe, while payment firms in Europe and the Middle East are also expanding merchant acquiring, remittances, and cross-border payments through new licenses.
Digital Transactions News10.15Visa and Mastercard launch stablecoin payment services covering cross-border payouts and global merchant spending
Visa launched a commercial service incorporating stablecoins for Visa Direct and, through Inyo Global, supports businesses sending domestic and international payouts to more than 180 countries. Mastercard, meanwhile, launched the Global Money Platform with BVNK. The platform lets users spend stablecoins at hundreds of millions of Mastercard-accepting merchants worldwide. Initial users include Nuvei, Marqeta, Ontop, Beem, and Almond Fintech.
Fintech News Singapore10.16Mastercard and BVNK launch fiat and stablecoin payments platform
Mastercard and BVNK launched the Mastercard Global Money Platform, which uses a single API to enable banks, fintech companies, and businesses to hold, convert, pay, and spend fiat currencies and stablecoins.
Stripe BlogFirst party10.16Stripe expands Global Payouts and stablecoin card issuance, and launches a unified API stack
Stripe announced three global expansion updates for fintech companies: an expansion of Global Payouts, stablecoin card issuance in 27 EU countries, and a unified API stack. Global Payouts now supports instant stablecoin payments to 160 markets and traditional currency payments to more than 100 markets. Stablecoin cards are available in more than 65 countries worldwide, with plans to expand to 100 countries by the end of 2026.
HSBC launches Hong Kong dollar stablecoin RedCoin on PayMe as businesses shift focus from interest to settlement times
HSBC launched the Hong Kong dollar stablecoin RedCoin on PayMe on October 23, 2026, with more than 3.3 million users expected to be able to activate wallets within days. The article argues that stablecoins primarily replace intermediary clearing in cross-border payments: on-chain settlement can take minutes, but conversion and crediting still depend on banks or licensed institutions. Cross-border merchants also need to include on-chain fees, exchange rates, and FX markups in total costs, and pay attention to merchant eligibility, banking partnerships, and AML requirements.
Fintech News10.15Ant International receives RPSCS and SVF licenses from the Central Bank of the UAE
Ant International received a Retail Payment Services and Card Schemes Category II (RPSCS) license and a Stored Value Facilities (SVF) license from the Central Bank of the UAE.
Fintech News Middle East10.26Ziina receives CBUAE approval to provide merchant acquiring and cross-border remittance services
Ziina received a Retail Payment Services Category III license from the CBUAE and authorization to provide overseas remittances through its app and other digital channels. The license covers domestic fund transfers, merchant acquiring, payment aggregation, and merchant payment tools such as payment links, QR payments, Tap to Pay, and online payment gateways.
Digital Financial Infrastructure
Section overviewThe ECB is advancing the digital euro, Pontes, and Appia, with the digital euro pilot and a 2029 issuance target becoming clearer. Europe will move to T+1 settlement in 2027, while Hong Kong plans to move to T+1 in the second half of 2028. DTCC, BNY, and others have already begun applying tokenized securities, Treasury collateral, and tri-party repo.
European Central BankFirst party10.08Piero Cipollone: Digital euro may launch in 2029; pilot underway
ECB Executive Board member Piero Cipollone said the digital euro will coexist with cash and could be launched in 2029; the pilot project began in the summer, with the first round of testing to start next year. The ECB selected 36 participants from nearly 60 applications. The digital euro will also support offline payments without network access and could halve the cost for small merchants to accept digital payments.
European Central BankFirst party10.06Piero Cipollone: ECB advances digital euro, Pontes, and Appia to build Europe’s digital financial infrastructure
ECB Executive Board member Piero Cipollone said the ECB is extending central bank money into retail payments and tokenized wholesale finance through the digital euro, Pontes, and Appia. The digital euro pilot is scheduled to launch in the second half of 2027 and run for 12 months. If the legislative process is completed by the end of 2026, the ECB aims to be ready for a first issuance in 2029. Pontes launched on September 21 to settle tokenized assets in central bank money, with full implementation expected by mid-2028.
European Central BankFirst party10.29Piero Cipollone: Europe to move to T+1 in 2027 and advance tokenization of securities infrastructure
ECB Executive Board member Piero Cipollone said Europe will move from T+2 to T+1 securities settlement on October 11, 2027, shortening the period from trade to securities delivery and payment to one day. T2S already supports T+1 and even T+0 settlement, and related overnight settlement processes are scheduled to be adjusted in June 2027. Meanwhile, Pontes already supports settling tokenized assets in central bank money. The Eurosystem also plans to extend its operating hours and explore a European tokenized financial ecosystem based on common standards through Appia.
DTCC launches U.S. securities tokenization service; Alpaca joins 20 participating institutions
DTCC launched a securities tokenization service, with Alpaca among the 20 institutions that signed on at launch. It can convert and redeem U.S. stocks, ETFs, and Treasuries held in custody as tokens. Tokenized stocks transacted through the Alpaca network are issued by third parties and generally provide economic exposure but no voting or dividend rights; DTCC, by contrast, says its tokens retain ownership of the securities held in custody and investor protections. Initial assets include Russell 1000 constituents, major index ETFs, and U.S. Treasuries. DTCC plans to add participants on a rolling basis and add more blockchain networks in 2027.
BNY completes first tokenized U.S. Treasury tri-party repo transaction on Tradeweb platform
BNY and Citadel Securities completed a tri-party repo transaction on the Tradeweb platform using tokenized U.S. Treasury collateral. The tokenized securities were recorded on BNY’s private ledger, reducing settlement time to minutes rather than T+1.
Fintech News Hong Kong10.19HKEX moves Hong Kong securities market T+1 settlement target to second half of 2028
HKEX plans to shorten the settlement cycle for the Hong Kong securities market from T+2 to T+1 in the second half of 2028, subject to market readiness and regulatory approval. HKEX will support the transition with a three-tier framework that includes extending instruction windows, adding real-time updates and matching, and launching the Settlement Profile Repository and Status Dashboard. Southbound Stock Connect trades following Hong Kong settlement arrangements will also move to T+1.
Compliance and Operational Resilience
Section overviewBank of America was fined more than $1.21 billion for AML and sanctions compliance deficiencies, while American Express was also penalized for deficiencies in its AML program. South Korea paused plans to relax bank network separation rules, a Google Cloud outage affected banking services in Western Europe, and FINTRAC published annual regulatory results including assessments, registration revocations, and penalties.
Bank of America fined more than $1.21 billion for AML and sanctions compliance deficiencies
The U.S. Treasury Department fined Bank of America more than $1.21 billion over AML and sanctions compliance deficiencies; the bank admitted to violating the Bank Secrecy Act. Bank of America will pay $750 million to the OCC, while OFAC separately reached an $11.6 million settlement over sanctions violations. The OCC said serious deficiencies in the bank’s monitoring systems delayed the filing of suspicious activity reports concerning billions of dollars in transactions.
Payments Dive10.09OCC and Federal Reserve take enforcement action against American Express over AML deficiencies
The OCC and the Federal Reserve simultaneously took enforcement action against American Express and its subsidiaries over deficiencies in their AML programs. American Express National Bank was fined $350 million in civil penalties and received a cease-and-desist order.
South Korean Financial Services Commission pauses plan to relax bank security rules
South Korea’s Financial Services Commission paused its plan to relax bank security rules after AI-assisted attacks affected seven financial institutions and exposed tens of thousands of customer records. The next round of participating banks was originally scheduled to be selected on October 7. The plan concerns South Korea’s network separation rules. In the first round, 49 institutions with assets of at least 10 trillion won and at least 1,000 employees received one-year exemptions; the second phase was originally intended to expand the program to 75 companies.
Payments Cards & Mobile10.27Six-hour Google Cloud outage affects Western European banking services; UK and EU regulators seek explanations
A power outage at a Google Cloud data center in the UK disrupted banking services in Western Europe for about six hours, affecting mobile banking, card payments, and cash withdrawals at institutions including Lloyds, HSBC, and Revolut.
FINTRAC publishes 2025–26 annual financial intelligence and AML regulatory results
FINTRAC reported its 2025–26 activity data: it generated 7,214 disclosure packages and 3,007 individual disclosures concerning 1.68M financial transactions, supporting 348 major investigations. On the regulatory front, FINTRAC conducted 4,874 assessment and monitoring activities, revoked 82 MSB registrations, issued 35 notices of violation, and imposed more than $247M in penalties, including a $176 million fine against Cryptomus.