United States
Federal GENIUS Act framework for payment stablecoin issuers complements existing state trust charters (NYDFS) and the legacy money-transmitter mosaic. Issuer choice drives reserve composition, holder rights, and distribution reach.
- Vehicle
- Federally chartered payment stablecoin issuer — bank, OCC-chartered trust, or qualifying non-bank subsidiary.
- Reserve
- 1:1 with US dollars, insured deposits, overnight repos and short-dated Treasuries (≤93 days). Segregated and bankruptcy-remote.
- Redemption
- At-par, T+1 redemption to holders; monthly attestations, annual audit.
- Regulator
- OCC / Federal Reserve / FDIC primary; state regulators for non-bank subsidiaries.
Strengths
- Federal preemption, nationwide payment rail
- Strongest US institutional acceptance
- Clear AML/sanctions perimeter (BSA)
Trade-offs
- High capital and governance bar
- No interest to holders permitted
- Yield economics fully retained by issuer / partner bank
Live or pilot examples
USDC (Circle, transitioning) · Anchorage white-label · Bank-issued PSIs
- Vehicle
- NY (or other state) limited-purpose trust company under part 200 / TXVA guidance.
- Reserve
- Cash and short-dated Treasuries held at qualifying custodians; segregated for the benefit of holders.
- Redemption
- 1:1 to verified holders; monthly reserve attestation; NYDFS supervisory exam.
- Regulator
- NYDFS (or analogous state regulator).
Strengths
- Established path with multiple precedents
- Fast to market vs federal charter
- Suitable for white-label (e.g. PYUSD)
Trade-offs
- Patchwork state-by-state distribution outside NY
- Possible re-papering under federal GENIUS regime
Live or pilot examples
PYUSD (Paxos) · USDP · BUSD (legacy) · RLUSD (Standard Custody)
- Vehicle
- Issuer holds 50-state MTL mosaic plus FinCEN MSB registration. Reserves held at partner banks.
- Reserve
- Cash + Treasuries at FDIC-insured banks; state-specific permissible-investment rules.
- Redemption
- 1:1 via licensed off-ramps; subject to state surety bonds.
- Regulator
- State money-transmission regulators + FinCEN.
Strengths
- Lower barrier than trust charter
- Reuses existing fintech licensing
Trade-offs
- Fragmented compliance
- Likely sunset under federal GENIUS framework
Live or pilot examples
Early USDC (pre-trust) · Stablecoin pilots by fintechs
- Vehicle
- Multiple banks co-own a dedicated issuer (EMI, trust company, or bank) that mints a shared stablecoin.
- Reserve
- Pooled and segregated at the JV entity; each owner bank may contribute deposits.
- Redemption
- At par via any owner bank's rails.
- Regulator
- Regime of the JV's home jurisdiction (MiCA / NYDFS / FINMA).
Strengths
- Shared cost, shared distribution
- Neutral brand for inter-bank settlement
Trade-offs
- Governance complexity
- Antitrust / competition scrutiny
Live or pilot examples
Qivalis (EU) · AllUnity / EURAU · Fnality (wholesale) · Partior (SGD/USD)
- Vehicle
- Regulated platform (trust, EMI, or bank) issues a branded token for a third-party (corporate, bank, fintech).
- Reserve
- Held by the regulated issuer; brand partner has no direct reserve claim.
- Redemption
- Through the platform issuer; brand partner handles distribution.
- Regulator
- Regime of the platform issuer.
Strengths
- Fastest path to a branded stablecoin
- No need to obtain own licence
- Lower fixed cost
Trade-offs
- Economics shared with platform
- Brand partner takes reputational risk without control
Live or pilot examples
Paxos (PYUSD) · Anchorage Digital · Brale · Bridge · Fireblocks Tokenisation
- Vehicle
- Token represents a share in a registered money-market fund or short-duration Treasury note.
- Reserve
- Underlying fund holdings (T-bills, repos).
- Redemption
- At NAV via authorised participants; not a payment stablecoin.
- Regulator
- SEC (US), CSSF/AMF (EU UCITS/AIFMD), FINMA FinIA (CH).
Strengths
- Passes yield to holders
- Strong institutional demand
Trade-offs
- Not at-par 24/7
- Securities-law distribution restrictions
Live or pilot examples
BUIDL (BlackRock) · USDY (Ondo) · BENJI (Franklin Templeton)
European Union (MiCA)
MiCA splits stablecoins into EMTs (single-currency) and ARTs (asset-referenced), each requiring EMI/credit-institution authorisation. Bank deposit tokens sit outside MiCA but inside CRD/CRR. Significant tokens get EBA-level supervision.
- Vehicle
- Authorised EMI or credit institution issuing a single-currency EMT under MiCA arts. 48-58.
- Reserve
- ≥30% in segregated bank deposits + remainder in HQLA per Art. 36. Daily redemption at par.
- Redemption
- At-par, no fee, on demand to any holder.
- Regulator
- Home NCA (e.g. ACPR, BaFin, CSSF, Bank of Lithuania) + EBA for significant EMTs.
Strengths
- EU-wide passport
- Clear consumer-protection regime
- No yield to holders → simple revenue model on float
Trade-offs
- 30% bank-deposit floor caps yield
- Significant EMT thresholds trigger heavier prudential rules
- Marketing/distribution restrictions
Live or pilot examples
EURC (Circle FR) · EURe (Monerium) · EURCV (SG-FORGE) · EURAU (AllUnity)
- Vehicle
- Credit institution or MiCA-authorised ART issuer referencing a basket of currencies, commodities, or assets.
- Reserve
- Composition mirrors reference basket; custody, liquidity-management and stress-testing per MiCA arts. 36-45.
- Redemption
- At reference value; redemption rights vary by ART class.
- Regulator
- Home NCA + EBA oversight; significant ARTs centrally supervised by EBA.
Strengths
- Supports multi-asset / basket designs
- Recognised across EEA
Trade-offs
- Higher capital (Art. 35) and governance burden
- Limited issuance caps for non-EUR ARTs
Live or pilot examples
Hypothetical multi-currency baskets · Commodity-referenced tokens
- Vehicle
- Tokenised commercial-bank money issued directly by an EU credit institution. Outside MiCA when structured as a deposit.
- Reserve
- On bank balance sheet; covered by deposit-guarantee scheme up to €100k.
- Redemption
- 1:1 against the bank; intraday wholesale settlement.
- Regulator
- ECB/SSM + home NCA under CRD VI / CRR III.
Strengths
- Full integration with TARGET / instant payments
- Highest counterparty quality
Trade-offs
- Limited to bank clients
- No public, permissionless distribution today
Live or pilot examples
EURCV pilots · Commerzbank tokenised deposit · ECB wholesale CBDC trials
- Vehicle
- Multiple banks co-own a dedicated issuer (EMI, trust company, or bank) that mints a shared stablecoin.
- Reserve
- Pooled and segregated at the JV entity; each owner bank may contribute deposits.
- Redemption
- At par via any owner bank's rails.
- Regulator
- Regime of the JV's home jurisdiction (MiCA / NYDFS / FINMA).
Strengths
- Shared cost, shared distribution
- Neutral brand for inter-bank settlement
Trade-offs
- Governance complexity
- Antitrust / competition scrutiny
Live or pilot examples
Qivalis (EU) · AllUnity / EURAU · Fnality (wholesale) · Partior (SGD/USD)
- Vehicle
- Regulated platform (trust, EMI, or bank) issues a branded token for a third-party (corporate, bank, fintech).
- Reserve
- Held by the regulated issuer; brand partner has no direct reserve claim.
- Redemption
- Through the platform issuer; brand partner handles distribution.
- Regulator
- Regime of the platform issuer.
Strengths
- Fastest path to a branded stablecoin
- No need to obtain own licence
- Lower fixed cost
Trade-offs
- Economics shared with platform
- Brand partner takes reputational risk without control
Live or pilot examples
Paxos (PYUSD) · Anchorage Digital · Brale · Bridge · Fireblocks Tokenisation
- Vehicle
- Token represents a share in a registered money-market fund or short-duration Treasury note.
- Reserve
- Underlying fund holdings (T-bills, repos).
- Redemption
- At NAV via authorised participants; not a payment stablecoin.
- Regulator
- SEC (US), CSSF/AMF (EU UCITS/AIFMD), FINMA FinIA (CH).
Strengths
- Passes yield to holders
- Strong institutional demand
Trade-offs
- Not at-par 24/7
- Securities-law distribution restrictions
Live or pilot examples
BUIDL (BlackRock) · USDY (Ondo) · BENJI (Franklin Templeton)
Switzerland (FINMA)
Swiss issuers pick between the bank-guarantee model under FINMA's 2024 stablecoin guidance, the fintech licence (BankG art. 1b), a full bank licence with DLT Act features, or FinIA structures for yield-bearing tokens. AMLA always applies.
- Vehicle
- Token issuer relies on an irrevocable default guarantee from a FINMA-supervised bank; legal claim runs to the bank.
- Reserve
- Held at the guaranteeing bank; segregated under art. 16 BankG. Bank covers shortfall up to guarantee cap.
- Redemption
- At-par against the guaranteeing bank; KYC at on/off-ramp.
- Regulator
- FINMA (issuer) + FINMA-supervised bank as guarantor; AMLA via VQF/SRO.
Strengths
- No banking licence required for the issuer
- Strong consumer protection
- Compatible with Swiss DLT Act
Trade-offs
- Bank guarantee is capped and re-priceable
- FINMA July 2024 guidance tightened KYC on every transfer
- Limited scalability for retail
Live or pilot examples
CCHF (Centi, Hypothekarbank Lenzburg) · DCHF concepts
- Vehicle
- Issuer holds the fintech licence — accepts up to CHF 100m public deposits, no maturity transformation, no interest.
- Reserve
- Held at FINMA-defined safe assets; cannot be invested in lending.
- Redemption
- At par; deposits NOT covered by esisuisse.
- Regulator
- FINMA + AMLA supervision.
Strengths
- Lower capital than full bank
- Suitable for payment-stablecoin issuers
Trade-offs
- CHF 100m cap on aggregate deposits
- No depositor-protection scheme
- FINMA still applies stablecoin guidance on KYC
Live or pilot examples
Smaller Swiss CHF stablecoin pilots
- Vehicle
- Full bank licence; tokens are ledger-based securities or deposits under DLT Act amendments.
- Reserve
- On balance sheet, segregated as bankruptcy-remote crypto-based assets where applicable.
- Redemption
- 1:1 against the bank; esisuisse protection up to CHF 100k.
- Regulator
- FINMA prudential + Circ. 2023/1 operational risk.
Strengths
- Strongest investor protection
- Eligible for SIC / SNB settlement
Trade-offs
- High capital and ICS requirements
- Slow time-to-market
Live or pilot examples
Sygnum DCHF (concept) · AMINA / SEBA tokenised deposits
- Vehicle
- FinIA-licensed securities firm or asset manager issuing tokenised MMF shares / yield-bearing instruments under FinSA prospectus rules.
- Reserve
- Underlying fund holdings (T-bills, CHF money market).
- Redemption
- At NAV; subject to FinIO organisational and capital requirements.
- Regulator
- FINMA under FinIA / FinIO + audit firm oversight.
Strengths
- Clear path for yield-bearing CHF/USD tokens
- Reuses Swiss fund infrastructure
Trade-offs
- Not a payment instrument
- Distribution restricted to qualified investors in some setups
Live or pilot examples
Tokenised Swiss MMFs (emerging) · 21Shares tokenised products
- Vehicle
- Multiple banks co-own a dedicated issuer (EMI, trust company, or bank) that mints a shared stablecoin.
- Reserve
- Pooled and segregated at the JV entity; each owner bank may contribute deposits.
- Redemption
- At par via any owner bank's rails.
- Regulator
- Regime of the JV's home jurisdiction (MiCA / NYDFS / FINMA).
Strengths
- Shared cost, shared distribution
- Neutral brand for inter-bank settlement
Trade-offs
- Governance complexity
- Antitrust / competition scrutiny
Live or pilot examples
Qivalis (EU) · AllUnity / EURAU · Fnality (wholesale) · Partior (SGD/USD)
- Vehicle
- Regulated platform (trust, EMI, or bank) issues a branded token for a third-party (corporate, bank, fintech).
- Reserve
- Held by the regulated issuer; brand partner has no direct reserve claim.
- Redemption
- Through the platform issuer; brand partner handles distribution.
- Regulator
- Regime of the platform issuer.
Strengths
- Fastest path to a branded stablecoin
- No need to obtain own licence
- Lower fixed cost
Trade-offs
- Economics shared with platform
- Brand partner takes reputational risk without control
Live or pilot examples
Paxos (PYUSD) · Anchorage Digital · Brale · Bridge · Fireblocks Tokenisation
- Vehicle
- Token represents a share in a registered money-market fund or short-duration Treasury note.
- Reserve
- Underlying fund holdings (T-bills, repos).
- Redemption
- At NAV via authorised participants; not a payment stablecoin.
- Regulator
- SEC (US), CSSF/AMF (EU UCITS/AIFMD), FINMA FinIA (CH).
Strengths
- Passes yield to holders
- Strong institutional demand
Trade-offs
- Not at-par 24/7
- Securities-law distribution restrictions
Live or pilot examples
BUIDL (BlackRock) · USDY (Ondo) · BENJI (Franklin Templeton)
Global / Cross-jurisdictional
Offshore single-issuer reserves, decentralised protocols and tokenised MMFs operate alongside the regulated regimes. Their access to regulated US/EU/CH distribution depends on local recognition.
- Vehicle
- Regulated platform (trust, EMI, or bank) issues a branded token for a third-party (corporate, bank, fintech).
- Reserve
- Held by the regulated issuer; brand partner has no direct reserve claim.
- Redemption
- Through the platform issuer; brand partner handles distribution.
- Regulator
- Regime of the platform issuer.
Strengths
- Fastest path to a branded stablecoin
- No need to obtain own licence
- Lower fixed cost
Trade-offs
- Economics shared with platform
- Brand partner takes reputational risk without control
Live or pilot examples
Paxos (PYUSD) · Anchorage Digital · Brale · Bridge · Fireblocks Tokenisation
- Vehicle
- Issuer incorporated in a light-touch jurisdiction (e.g. BVI, El Salvador DASP, Bahamas DARE).
- Reserve
- Cash, T-bills, sometimes BTC / gold / secured loans. Attestations vary.
- Redemption
- 1:1 to verified institutional holders; retail typically via secondary markets.
- Regulator
- Local DASP/VASP regulator only; no onshore passport into US/EU/CH.
Strengths
- Flexibility on reserve composition
- Speed of launch
Trade-offs
- Excluded from MiCA distribution
- Restricted in regulated US/EU venues
- Higher counterparty and disclosure risk
Live or pilot examples
USDT (Tether) · USDe (Ethena) · FDUSD (First Digital)
- Vehicle
- Decentralised protocol with on-chain collateral (ETH, RWAs) and governance token. No licensed issuer.
- Reserve
- Over-collateralised crypto + RWAs; on-chain transparent.
- Redemption
- Algorithmic peg via CDPs, PSMs and arbitrage.
- Regulator
- Currently outside MiCA/GENIUS; future treatment uncertain.
Strengths
- Censorship-resistant
- Composable across DeFi
Trade-offs
- Excluded from regulated distribution
- Peg risk under stress
- MiCA bans algorithmic stablecoins from EU offering
Live or pilot examples
DAI / USDS (Sky) · frxUSD (Frax) · crvUSD
