HIGH SIGNAL NEWS

• JPMorgan launches a private fund tokenization solution. Called Kinexys Fund Flow, it debuted with the tokenization of a private equity fund for the bank’s Private Bank clients, in partnership with fund administrator Citco.⛓️ 

• Standard Chartered will launch a crypto custody service in Hong Kong, covering Bitcoin and Ethereum, with a January go-live. The bank already offers custody in the UAE and Luxembourg and was the first globally systemic bank to introduce spot crypto trading in July 2025.🏦

• UBS completes the first live subscription and redemption of its uMINT fund using Chainlink’s DTA standard. The standard enables traditional fund and transfer agency workflows to operate onchain. The transaction involved UBS’s money market fund deployed on Ethereum, with DigiFT, a Singapore-based regulated digital asset exchange, serving as the onchain fund distributor.🇨🇭

• Hong Kong will allow crypto exchanges to tap global liquidity. On Monday, the Hong Kong regulator announced that licensed crypto trading platforms will be permitted to source liquidity from their global order books, a move not currently allowed in Europe. To dive deeper, see our conversation with Morgane Fournel Reicher, lawyer at Norton Rose Fulbright LLP.🇭🇰 

STABLECOINS

A losing battle: According to people familiar with the matter, the European Central Bank is set to lose its campaign to ban the dual-issuance stablecoin model, after nearly a year of behind-the-scenes lobbying. Had the ECB prevailed, issuers such as Circle and Paxos would likely have been forced to halt the issuance of their dollar stablecoins, USDC and USDG, in Europe and create separate, EU-only versions under full European oversight.

• Why it matters: First pioneered by Circle, the dual-issuance model allows a single stablecoin like USDC to be issued by two regulated entities in different jurisdictions while remaining fungible for users. It emerged as a practical workaround to MiCA, letting issuers maintain global liquidity while meeting reserve requirements without fragmenting the token’s market.

The ECB’s opposition: The ECB has argued that the model could undermine monetary sovereignty by encouraging deposit outflows into dollar-based stablecoins. It also warned that, in a stress scenario, non-EU holders might redeem their tokens in Europe, draining reserves from local banks.

• Additional support: Those concerns were echoed by the European Systemic Risk Board (ESRB) in its October report, which cautioned that MiCA “does not explicitly envisage the joint issuance of stablecoins by EU and third-country entities and therefore cannot address the associated risks.”

A decisive report: To settle the issue, a report commissioned in spring 2024 by the European Banking Authority (EBA) to the European Commission — now expected to be published in the coming days — will confirm the model’s legality, according to people familiar with its findings.

• “The report explicitly confirms the legality of the dual-issuance model, as anticipated, and also puts forward a series of recommendations to frame it,” two sources said. “From its perspective, banning this model makes little sense as it would expose European consumers and businesses to poorer liquidity conditions in crypto markets, threatening the market’s competitiveness.”

An upcoming hearing: On November 17, the European Commission will present its findings to the European Parliament, where the ECB still commands strong political backing. Rather than an outright ban, the Commission is expected to advocate clearer, more structured regulation. Yet how those rules are defined will be where the devil lies in the detail.

• Reopening MiCA? One option would be to reopen MiCA. “But to what extent? The risk is ending up with too many amendments, given the hostility of some parts of Parliament toward this model,” one source noted. According to our information, the Commission considers reopening unnecessary, though the Eurogroup, representing euro-area finance ministers, could still request it.

• Accounting à la Circle? Another possibility would be to draw on the model proposed by Circle to its French regulator, the ACPR. Its core principle relies on a reporting system that calculates how many units of USDC are held by EU users — an imperfect approach, especially given the peer-to-peer nature of DeFi and self-custody. Although approved, the model remains under close regulatory monitoring, as Blockstories reported in August.

Multi-jurisdictional complexity: With concrete guidelines for the U.S. GENIUS framework now being drafted, the challenge of global stablecoin oversight will only grow more complex and likely demand cross-Atlantic coordination if multi-issuance is to remain viable.

Simon Seiter is Managing Director and CFO at AllUnity, a joint venture between Galaxy Digital, Flow Traders, and DWS, which issues EURAU, a euro-denominated stablecoin regulated under MiCA.

The multi-issuance model puts consumer protection at risk. It mixes regulated and unregulated reserves and leaves users unsure where their money is actually held. That’s a serious gap in protection, and a weakness regulators never intended but also never fixed.

The only credible path forward is regional issuance. Stablecoins should be issued separately under each regime, with reserves fully held and supervised locally. Europe’s framework must protect European users; the U.S. can do the same under GENIUS.

Coordination may come later, but until both systems are aligned, separation is the safer, more responsible model. Anything else risks trust in the entire market.

Nick van Eck is the CEO and co-founder of Agora, the issuer behind the AUSD stablecoin and a provider of white-label stablecoin infrastructure that enables other companies to launch their own branded stablecoins on top of AUSD.

While the debate over multi-jurisdictional issuance isn’t new, it’s about to get far more complex. Until now, only the Eurozone had its own framework, but the U.S. will soon add GENIUS — and the two regimes simply don’t fit together. MiCA requires stablecoin reserves to be held in EU-regulated banks, while GENIUS will demand U.S.-domiciled custody. Redemption fees add another fault line: permitted in the U.S., banned in Europe.

Those divergences will inevitably distort redemption flows, creating arbitrage risk and exposing European banks to unwanted pressure. It’s understandable that European regulators will not accept having EU-licensed assets indirectly governed by U.S. oversight.

So, even if dual issuance survives for now, fragmentation is inevitable. We’re already seeing that shift with Tether’s planned U.S.-only stablecoin, USAT. At Agora, we’re preparing for that world through atomic 1:1 swaps across compliant regional coins.

TOKENIZATION

• Bitget: Institutional Business Development Manager, Europe, Remote 🇪🇺

• BNY: Senior Product Development Manager - Blockchain/Digital Assets/Payments, London 🇬🇧

• Boerse Stuttgart: Product Manager - Seturion & BX Digital, Stuttgart 🇩🇪

• Circle: Senior Manager, Business Development, Exchanges, Europe, Dublin 🇮🇪

• Particula: Head of Rating, Remote 🇪🇺

• Tradias: Account Manager, Frankfurt 🇩🇪

Disclaimer: The information provided in the Institutional Briefing by Blockstories does not constitute investment advice. Accordingly, we assume no liability for any investment decisions made based on the content presented herein.