Payments Weekly · 2026-W40Weekly
PAY.NEWS
Stablecoin Compliance and Payment Infrastructure Expansion
From 2026-09-28 to 2026-10-04, the payments industry accelerated the connection of stablecoins with traditional finance and business payments on the one hand: Citi expanded its partnership with Coinbase, while Stripe made OUSD the default stablecoin and integrated it into multiple products. On the other hand, the regulatory framework continued to tighten, with the Federal Reserve proposing rules on stablecoin reserves and issuance, while the UK FCA opened applications for cryptoasset authorization and strengthened supervision of illegal businesses and anti-money laundering activities. In payment infrastructure, the ECB advanced the Pontes tokenized asset settlement pilot and assessed the feasibility of connecting TIPS with Brazil’s Pix. Agent payments also received feature upgrades through authorization, spending insights, and purchase protection.
Stablecoins Enter the Payment System
Section overviewCiti and Coinbase are expanding their partnership, with Coinbase using Citi’s Virtual Account Wallet to support Virtual Accounts, connecting businesses and consumers through fiat and digital payments. Stripe has launched OUSD support and set it as the default stablecoin configuration, allowing businesses to use OUSD through products including Treasury, Issuing, Global Payouts, Crypto Onramp, and Payments. The Federal Reserve has also proposed requiring stablecoins to be fully backed by high-quality liquid assets such as Treasury bills, while establishing capital and risk management standards.
Fintech News09.29Citi and Coinbase Expand Their Partnership, Connecting Businesses and Consumers Through Fiat and Digital Payments
Citi and Coinbase announced an expanded partnership with two initiatives: Coinbase selected Citi’s Virtual Account Wallet (BaaS) to support Coinbase Virtual Accounts.
Stripe BlogFirst party09.30Stripe Sets OUSD as the Default Stablecoin and Integrates It into Multiple Payment Products
Stripe announced the launch of OUSD support across its products and set OUSD as the default stablecoin configuration. Businesses can use Treasury to receive, hold, send, and spend OUSD, and can also use products including Issuing, Global Payouts, Crypto Onramp, and Payments. OUSD is supported on Base, Ethereum, Solana, and Tempo, while Stripe will continue to allow users to use other stablecoins.
Federal Reserve Proposes Stablecoin Rules Requiring Issuers to Fully Back Them with Treasury Bills and Other High-Quality Assets
The Federal Reserve proposed stablecoin rules requiring issuers to back stablecoins with high-quality liquid assets such as Treasury bills, while establishing capital requirements and risk management standards for issuing institutions. The rules also cover the process for banks applying 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.
UK Tightens Crypto Regulation
Section overviewThe FCA has opened applications for authorization from cryptoasset firms. Firms intending to continue operating must apply by 28 February 2027, and the new regulatory regime will take effect on 25 October 2027. The FCA also worked with HMRC and the Metropolitan Police to target suspected illegal peer-to-peer crypto trading and is investigating possible breaches of anti-money laundering rules by Euro Exchange Securities UK Ltd. In the future, it will also take over AML supervision of approximately 60,000 entities in the legal and accounting sectors.
FCA Opens Applications for Cryptoasset Firm Regulatory Authorization
The FCA announced that cryptoasset firms can apply for authorization from today. For the first time, the UK will bring cryptoasset firms operating locally under comprehensive FCA regulation, covering consumer protection, safeguarding of client assets, market integrity, and financial resilience. Firms 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, and firms must demonstrate that they meet the FCA’s requirements.
FCA and Partner Agencies Raid Three London Locations Suspected of Illegal Peer-to-Peer Crypto Trading
The FCA, HMRC, and the Metropolitan Police took action at three London locations suspected of facilitating illegal peer-to-peer crypto trading and issued stop notices to all the locations, requiring them to cease suspected illegal crypto activities. 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 carried out on 10 September 2026 under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.
FCA Investigates Euro Exchange Securities UK Ltd
The FCA is investigating possible breaches of the MLRs by Euro Exchange Securities UK Ltd between 1 February 2020 and 4 June 2026. The investigation concerns whether it adequately assessed money laundering risks and established controls covering customer due diligence, ongoing monitoring, internal governance, record-keeping, and escalation of reports. The FCA had previously required the company to stop its regulated electronic money and payment services and, through the courts, appointed interim and special administrators. The FCA stated that the investigation has not reached any conclusions.
FCA to Take Over AML Supervision of 60,000 Entities in the Legal and Accounting Sectors by the End of 2028
The FCA will become responsible for AML supervision of 60,000 entities in the legal and accounting sectors by the end of 2028. It has committed to adopting a risk- and intelligence-led approach to reduce unnecessary burdens on compliant firms. The FCA said its intelligence system can process more than 56 million records per day and that it will use technology to identify high-risk firms earlier. The agency also said it would focus resources on higher-risk financial crime activities by raising the threshold for suspicious activity reports to £3,000 and reducing duplicative requirements.
Agent Wallet Features Upgraded
Section overviewStripe has introduced three improvements to the Link agent wallet. Incremental authorization allows agents to increase the approved amount when the final price exceeds the originally authorized amount, reducing the need to place a new order. Spending insights powered by Financial Connections can analyze transaction data from more than 12,000 financial institutions to improve recommendations. Eligible transactions can also receive free purchase protection.
Stripe BlogFirst party09.29Stripe Adds Incremental Authorization, Spending Insights, and Purchase Protection to the Link Agent Wallet
Stripe has introduced three improvements to the Link agent wallet: incremental authorization allows agents to increase the approved amount when the final price exceeds the originally authorized amount, avoiding the need to place 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, the number of agent purchases completed through Link has increased 38-fold.
Tokenized Settlement and Interoperability
Section overviewThe ECB Governing Council approved the initial launch protocol for Pontes, enabling wholesale transactions in tokenized assets to settle in central bank money, and plans to launch the initial phase. At the same time, the ECB will assess the feasibility of connecting the instant payment system TIPS with Brazil’s Pix and has designated Visa Europe Payment System as a systemically important payment system to be overseen by the ECB, indicating that Europe is advancing digital asset settlement and cross-border payment infrastructure.
European Central BankFirst party10.02ECB Advances Pontes Tokenized Asset Settlement Pilot and Assesses TIPS–Pix Interoperability
The ECB Governing Council approved the initial launch protocol for Pontes, enabling wholesale transactions in tokenized assets to settle in central bank money, with the initial phase planned to launch on 21 September. The ECB also approved an assessment of the feasibility of connecting TIPS with Brazil’s instant payment system Pix and designated Visa Europe Payment System as a systemically important payment system to be overseen by the ECB.
Scaling Market Infrastructure
Section overviewThe FCA proposed moving UK market infrastructure regulation from experimentation to scaled adoption, creating the conditions for emerging technologies such as tokenization to expand safely in wholesale markets. The agency has authorized HSBC Orion to provide real-time digital securities custody services and plans to advance a stablecoin regime and tokenization roadmap with the Bank of England, with regulatory priorities gradually shifting from pilot exploration toward institutionalized and scaled adoption.
FCA Sets Out Next-Generation Market Infrastructure Regulatory Direction: From Experimentation to Scaled Adoption
Speaking at TheCityUK dinner, FCA Chief Executive Nikhil Rathi said that the UK must move from experimentation to adoption, creating the conditions for emerging technologies such as tokenization to expand 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 will jointly publish a tokenization roadmap with the Bank of England while consulting on protection rules for related tokenized investment assets.