“This is not a given for stablecoins.”
Hey, it's Marc.
Welcome to the Monday edition of the 51 Insights digital asset newsletter.
Ahead of Thursday's G20 meeting, Singapore's central bank questioned whether stablecoins can settle big trades.
Here's what matters this week:
Let’s unpack. 👇
THE BIG STORY / SETTLEMENT
Central banks want the cash leg
What's going on here?
When you buy a tokenized bond, something has to pay for it. Central banks would like that something to be their money.
On Friday, Chia Der Jiun, who runs Singapore's central bank, explained why a bank deposit holds its value. Banks can swap it one for one for central bank reserves. “This is not a given for stablecoins,” he said, and there “may be limits” to using them for large wholesale trades. MAS is now moving to settle its own tokenized bills in central bank digital money.
On Monday, the Financial Stability Board told the G20 that global stablecoins and national rules “remain untested in severe stress and insolvency.” In Europe, the ECB's Pontes already lets banks settle tokenized trades in central bank money.
What does this mean?
Officials are sketching tiers of digital money. In MAS's view, deposit tokens fit banking jobs like cash management. Stablecoins may find wider use on crypto exchanges and in fintech payments. MAS still left room for regulated stablecoins in cross-border wholesale payments.
That's awkward timing for issuers. Stablecoin supply grew 73% in the year to October 2025, and less than 5% since. Big institutional trades were the obvious next market.
Not every central banker sounds so sure though. Discussing a digital pound on Monday, the Bank of England's Sarah Breeden asked: “Does it have to be central bank money that's leading the way?”
The market isn't waiting. Also on Monday, Standard Chartered said custody is live for Ripple's RLUSD stablecoin through its Dubai branch. With Ripple and LMAX Group, it plans to let clients use RLUSD as collateral for LMAX products while the coins stay at the bank. That part still needs testing and approvals.
Why should I care?
My read: the wholesale door isn't shut, but getting in may cost more. To settle big trades, a stablecoin may need what banks have: access to reserves and bank-style rules. MAS mentioned reserve access for big stablecoins as an idea under discussion. It didn't back it. For now, collateral looks like the easier way in. And banks with deposit tokens just heard a central bank make their case.
Related story: Pontes: the ECB's alternative to stablecoins
Since Friday
Friday · Franklin wants to supply the cash. Franklin Templeton met the SEC's crypto task force. It asked whether it needs SEC relief for its tokenized money market fund to trade in pairs with tokenized stocks on the new venues. Same fight over the cash leg, in the US.
Friday · Can tokens be margin? Europe's markets regulator ESMA asked the market whether tokenized collateral is safe enough for clearing houses. Answers are due January 15, 2027.
The week ahead
Tuesday, October 13 · Bank earnings start. JPMorgan and Citi report. BlackRock and State Street follow on Wednesday, then BNY on Thursday. I'll listen for deposit tokens and tokenized funds.
Tuesday, October 13 · DC Fintech Week opens. Regulators and builders meet in Washington through Friday, with the BIS and World Bank taking part.
Wednesday, October 14 · US inflation data. September consumer pricescome out at 8:30 a.m. ET.
Thursday, October 15 · The G20 meets. Finance ministers and central bankers meet in Bangkok, during the IMF and World Bank meetings that run through Sunday. The FSB's stablecoin work is on the table. Singapore's stablecoin consultation closes a day later.
Sunday, October 18 · Money20/20 USA opens. The payments industry gathers in Las Vegas through Wednesday.
Monday, October 19 · GENIUS comments due. Comments close on Treasury's proposed rules for stablecoin issuers. Watch what the banks ask for.
👉Follow all the stories on 51insights.xyz
One useful read
FSB: Global stablecoin arrangements · October 12. Nine pages on what breaks when a stablecoin used in many countries hits trouble. The best part covers tokens issued by several related companies, where a run could pile onto one of them. Free.
My question for the week: if a stablecoin could tap central bank reserves, is it still a stablecoin, or just a bank?
That’s all for now, folks.
Take care
– Marc & Team
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