Shanghai officials potentially signaling openness to stablecoins

Iranian authorities last week introduced new restrictions on stablecoin transactions, limiting individuals to an annual purchase cap of $5,000 and a total holding limit of $10,000. According to a report from Iran International, licensed digital platforms have one month from the effective date to enforce these new regulations on all users.Photo by Hadis Malekie on UnsplashRial decline fuels stablecoin uptakeThe move coincides with the continued devaluation of the national currency, with the Iranian rial reaching an all-time low of 1,136,500 per U.S. dollar on Sept. 27. This currency plunge occurred just before the reimposition of United Nations sanctions, which took effect at 00:00 UTC on Sept. 28. Since then, the rial has weakened further, reaching a new low of 1,170,000 per U.S. dollar as of publication, as per data from Bonbast.  For many Iranians, stablecoins like USDT have become an essential financial tool, providing a hedge against inflation and a means to transfer funds internationally, bypassing the traditional banking system. The adoption of these U.S. dollar-pegged digital assets has reportedly grown since the escalation of conflicts with Israel and the U.S. earlier in the year. These new financial controls follow recent actions by the U.S. to counter what it describes as Iranian "shadow banking" networks. On Sept. 16, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two Iranian financial operatives and their network of companies in Hong Kong and the United Arab Emirates (UAE). A press release stated these entities used cryptocurrency and front companies to transfer funds from oil sales, benefiting Iran’s IRGC-Qods Force (QF) and its Ministry of Defense and Armed Forces Logistics (MODAFL). The U.S. Treasury asserts these funds are funneled into regional proxy groups and the development of advanced weapons programs.U.S. dollar to rial chart Source: BonbastHack on Iran’s top crypto platformIran’s private digital currency sector has also faced mounting security pressures. In June, Nobitex, the country’s largest crypto exchange, was hit by a major exploit that drained about $90 million in assets, including Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), Tron (TRX), and TON. A pro-Israel hacker group known as Predatory Sparrow, or Gonjeshke Darande, later claimed responsibility in a post on X. The attack took place during heightened military tensions that began with Israeli strikes on Iranian military and nuclear facilities on June 18, 2025. According to analysis by TRM Labs, digital assets are increasingly integral to Iran's efforts to navigate international sanctions and advance its geopolitical interests. Iranian exchanges, including Nobitex, process billions in cryptocurrency transactions. These platforms have been noted for permitting large withdrawals without stringent Know Your Customer (KYC) protocols and for employing sophisticated methods to obscure the origins and destinations of funds. At the same time, these exchanges are not used solely for state-level purposes. For many ordinary Iranians, grappling with inflation and economic isolation, digital assets represent a practical tool for safeguarding savings and maintaining limited access to the global economy, underscoring the dual role that cryptocurrency plays in the country. 

Real-World Asset Investment Platform Alterna Launches in JapanMitsui & Co. Digital Asset Management (Mitsui & Co. DAM) has unveiled Alterna, a novel platform designed to offer retail investors the chance to invest in real-world assets (RWAs). The service launched on Monday following receipt of the necessary regulatory approvals.Photo by Louie Martinez on UnsplashRWA-backed security tokensAlterna enables users to conveniently invest in RWAs that generate stable rental income and other returns. RWAs encompass a wide range of assets, including large-scale real estate properties and infrastructure such as logistics facilities and power plants. By offering security tokens, Alterna opens the door to previously out-of-reach investment opportunities, allowing individuals to invest with a minimum of 100,000 yen. This new service represents an exciting alternative for individuals traditionally more comfortable with cash savings.The first investment opportunity on the platform will be “Stage Grand Nihonbashi Ningyocho,” a residential building located in the Nihonbashi district. The application begins on June 2.The platform’s name, Alterna, emphasizes its role as an alternative investment service, offering a fresh approach distinct from conventional options such as bank deposits, stocks, and investment trusts.More effective portfolio managementCompared to traditional investment types like stocks and bonds, RWAs offer unique risk-return characteristics. With RWA-backed investments, investors can potentially achieve more effective portfolio management. These alternative assets have been garnering interest from institutional investors as well.The Japanese Government Pension Investment Fund (GPIF), the world’s largest institutional investor, has been investing in alternative assets since 2014. To pursue yields, the GPIF has been expanding its investment portfolio in real assets like real estate and infrastructure.Easy investment with smartphonesTraditionally, retail investors encountered difficulties investing in large-scale real estate and infrastructure assets. Mitsui & Co. DAM aims to establish an environment where such investments can be made easily via security tokens using smartphones.Interest in Alterna has been substantial even before its official launch, with over 10,000 pre-registrations recorded earlier this month.

Hong Kong Pressing Banks to Facilitate Crypto ClientsHong Kong’s banking regulator is urging banks, including HSBC and Standard Chartered, to onboard crypto exchanges as clients, despite increasing regulatory scrutiny of the industry in the United States.That’s according to a report published by the Financial Times (FT) on Wednesday. The FT cited three people who it claims are familiar with the matter, together with a letter seen by the publication as the basis for the assertion.Photo by Ansel Lee on PexelsChallenging crypto banking reticenceAt a recent meeting, the Hong Kong Monetary Authority (HKMA) questioned these UK-based lenders, together with the Bank of China, about their reluctance to accept crypto exchanges as customers, according to sources familiar with the matter. The HKMA emphasized that due diligence on potential clients should not create unnecessary burdens, particularly for those seeking opportunities in Hong Kong. While banks do not have a ban on crypto clients, concerns over potential money laundering and illegal activities have made them cautious.The pressure faced by banks highlights the challenges Hong Kong is facing in establishing itself as a global hub for the crypto industry, especially in light of previous high-profile collapses, such as the implosion of FTX. However, the HKMA is encouraging banks to overcome their reservations, as the regulator believes there is resistance from senior executives who adhere to traditional banking mindsets.The enthusiasm of some Hong Kong officials for the sector is evident as pro-Beijing lawmaker Johnny Ng invited Coinbase and other crypto exchanges to set up operations in the city following the recent SEC lawsuit against Binance and Coinbase.Caught between opposing forcesBanks in Hong Kong find themselves walking a fine line between supporting the crypto industry as encouraged by the government and being cautious due to the US regulatory environment. They want to ensure the industry’s development aligns with government policies, but they are also concerned about potential anti-money laundering and know-your-customer issues.The HKMA and the Securities and Futures Commission (SFC) have been vocal about their expectations, setting them apart from regulators in other jurisdictions that may be more skeptical of cryptocurrencies. Last month it emerged that crypto startups are having difficulties in establishing banking facilities in the autonomous Chinese territory. At the time, the HKMA did convene a meeting to bring parties together in order to forge a path forward.While Hong Kong has a history as a crypto center, its position weakened after Beijing’s crackdown on the industry in 2017. However, the Hong Kong government aims to reestablish the city as a hub for digital assets, having expressed its desire to provide a supportive environment for crypto-related businesses. The introduction of a new licensing regime for crypto platforms in Hong Kong is part of the government’s efforts to attract more crypto groups to the city.HSBC, Standard Chartered, and the Bank of China hold influential positions in Hong Kong as issuers of the city’s currency and have key roles in the Hong Kong Association of Banks lobby group. Standard Chartered claims that it maintains regular dialogue with regulators on various subjects, while HSBC has claimed that it is actively engaging in policies and developments within the nascent industry.