Discover top stablecoin friendly nations of 2025 from the EU’s MiCA framework to Singapore and how they’re shaping the future of payments.
Author: Chirag Sharma
2025 is officially the year money went borderless. Stablecoins, cryptocurrencies designed to keep their value steady by pegging to fiat currencies, commodities, or algorithmic mechanisms are no longer a niche of traders and tech enthusiasts. They’ve become the backbone of global digital payments. Over the past 12 months, stablecoins processed more than $8.5 trillion in on-chain transactions, surpassing Visa’s annual payment volume for the first time in history. The focus isn’t speculation but it’s inclusion, remittances, trade, and fintech growth. From Europe’s MiCA to Singapore’s MAS seal, governments now compete to attract the next wave of stablecoin issuers. Below, we explore the ten most stablecoin-friendly nations of 2025 with the jurisdictions setting the gold standard for this new monetary era.
The EU’s Markets in Crypto-Assets (MiCA) regulation, fully enforceable since 30 June 2024, has become the global benchmark for digital-asset policy.
“MiCA provides legal certainty for issuers of asset-referenced tokens and e-money tokens while ensuring high standards of investor protection and financial stability.”
— José Manuel Campa, Chairperson, European Banking Authority (2025)
Fourteen euro-denominated stablecoins now hold full Electronic Money Institution (EMI) licenses. Circle’s EURC grew 2,700 percent YoY, while Société Générale’s EUR CoinVertible became a favorite for institutional settlements. The European Central Bank even references private stablecoins as “complementary infrastructure” to the upcoming digital euro.
With harmonized licensing, consumer protection, and passporting rights across 27 member states, the EU has turned itself into the most legally solid of all stablecoin-friendly nations and a model even the G20 now recommends other regions emulate.
Singapore’s Monetary Authority of Singapore (MAS) finalized its stablecoin framework in August 2023 and began awarding the coveted “MAS-regulated stablecoin” label the following year.
“Well-regulated stablecoins can serve as a credible digital representation of money and anchor the future ecosystem of tokenised financial services.”
— Ravi Menon, MAS Managing Director (2023)
Projects like StraitsX (XSGD and XUSD), Paxos, and Crypto.com now operate under direct supervision, holding 100 percent reserves in segregated trust accounts at DBS Bank and other Tier-1 institutions.
Singapore’s balance between innovation and discipline makes it Asia’s flagship among stablecoin-friendly nations, attracting tokenized-asset firms, cross-border payment startups, and global banks experimenting with programmable money.
On 30 May 2025, the Hong Kong Legislative Council passed the Stablecoins Ordinance, requiring all fiat-referenced issuers to obtain a Hong Kong Monetary Authority (HKMA) license by 1 January 2026.
“A well-regulated stablecoin regime will reinforce Hong Kong’s position as an international financial centre and facilitate the healthy development of the Web3 ecosystem.”
— Eddie Yue, HKMA Chief Executive (2025)
The preceding sandbox hosted eight pilots, including Standard Chartered x Animoca’s HKD-pegged token that moved HK $ 1.2 billion in test volume. With global banks involved from day one, Hong Kong is sprinting toward top-tier status among Asia’s stablecoin-friendly nations and combining China’s proximity with Western regulatory clarity.
The Central Bank of the UAE (CBUAE) made headlines in February 2025 by approving the AE Coin, the world’s first fully licensed dirham-pegged stablecoin.
“Regulated stablecoins will play a pivotal role in modernising payment systems and enhancing financial inclusion across the UAE and the wider region.”
— Khaled Mohamed Balama, CBUAE Governor (2025)
Dubai’s VARA and ADGM now permit USDT and USDC settlement for licensed VASPs, with daily volumes exceeding $300 million. The UAE’s pro-innovation attitude and zero-tax environment are turning it into the Middle East’s most strategic of stablecoin-friendly nations, attracting fintechs from Europe, India, and Africa alike.
Japan re-wrote its Payment Services Act in June 2023 to restrict stablecoin issuance exclusively to licensed banks and trust companies.
“By restricting issuance to highly trusted financial institutions, Japan ensures yen-backed electronic payment instruments maintain the same safety as traditional deposits.”
— Financial Services Agency (FSA) Policy Paper (2024)
The move birthed Mitsubishi UFJ Trust Bank’s Progmat Coin platform, which now hosts three yen-denominated tokens circulating ¥ 180 billion ($1.2 billion). For users, it’s the same confidence as a bank deposit just faster.
The UK Treasury and Bank of England unveiled final stablecoin proposals in October 2024, guided by a simple principle: same risk, same regulation.
“The UK will become the global home for responsible crypto innovation, including systemic stablecoins that can power everyday payments.”
— Chancellor Rachel Reeves, Autumn Budget Statement (2024)
Three firms already operate sterling-pegged pilots under temporary FCA registration, holding £ 2.8 billion in reserves. The Bank of England plans full integration with retail payment rails by 2026.
Post-Brexit Britain is rebuilding its fintech crown, intent on ranking near the top of Europe’s stablecoin-friendly nations and reclaiming London’s role as the world’s settlement hub.
Switzerland’s FINMA has supervised stablecoin projects since 2018, giving it one of the world’s longest track records.
“Tokenised deposits and regulated stablecoins are natural extensions of the Swiss franc money supply and will enhance the efficiency of our financial infrastructure.”
— Thomas Jordan, Swiss National Bank Governor (2025)
Both Sygnum Bank and SEBA Bank now operate franc-pegged stablecoins, fully backed by SNB-eligible collateral totaling CHF 1.1 billion.
Thanks to its neutrality, legal precision, and crypto-banking expertise, Switzerland quietly remains a pillar among stablecoin-friendly nations, proving that trust and innovation can be engineered as precisely as a Swiss watch.
Brazil’s stablecoin boom began at the grassroots level. Millions of citizens turned to USDT and USDC as informal dollar substitutes, sending remittances and hedging inflation. The government responded pragmatically.
“Stablecoins are already a reality in Brazil. Our upcoming framework will transform informal dollarisation into a regulated, transparent channel that benefits millions.”
— Roberto Campos Neto, Central Bank President (2025)
Daily USDT inflows to Brazilian exchanges exceed R$ 12 billion ($2.1 billion), growing 63 percent YoY. The new Regulatory Sandbox 2025 now hosts projects integrating stablecoins into PIX, the nation’s instant-payment network.
Among emerging markets, Brazil stands tall as Latin America’s heavyweight of stablecoin-friendly nations, turning necessity into infrastructure.
After making Bitcoin legal tender, El Salvador took another leap.
“We just issued the first fully regulated stablecoin in Latin America under CNAD supervision. This is financial freedom in action.”
— President Nayib Bukele, @nayibbukele (18 Jul 2025)
The National Commission for Digital Assets (CNAD) granted Tether Operations Limited a formal license to issue dollar-backed tokens locally, audited monthly by the Superintendencia del Sistema Financiero.
The plan is to integrate stablecoins into the national Chivo Wallet, giving Salvadorans a choice between volatile BTC and stable digital dollars. With that, El Salvador joins the pioneers of stablecoin-friendly nations in the Americas, fusing ideology with pragmatism and its dream of a Bitcoin first bank.
Small but mighty, Bermuda has leveraged its reputation for financial integrity to attract major stablecoin players.
“Bermuda’s framework allows captives and insurers to hold up to 15 percent of assets in regulated stablecoins, creating a $400 million institutional pipeline overnight.”
— Premier David Burt, BMA Industry Briefing (2025)
The Bermuda Monetary Authority (BMA) amended its Digital Asset Business Act in 2024 to explicitly include stablecoins. Circle, Paxos, and Jewel Bank now operate under Class F licenses with issuance capacity above $3 billion.
Bermuda’s message to global finance is simple: scale doesn’t matter but the structure does. And its structure earns it a top-10 spot among the world’s stablecoin-friendly nations.
Across these ten jurisdictions, a clear pattern emerges with a three-pillar blueprint that defines every credible stablecoin framework:
These standards convert skepticism into trust. They transform “crypto money” into reliable digital cash.
The G20 Roadmap for Crypto-Asset Regulation (2025) praises these rules as global benchmarks that promote stability while preserving innovation.
Together, the world’s stablecoin-friendly nations are writing the rulebook that everyone else will soon follow.
Let’s look at the bigger picture.The competition among these jurisdictions isn’t only about tech; it’s about economics, sovereignty, and speed.
Cross-border payments:
A worker in Dubai can send funds to family in Brazil in seconds using regulated USDC or XSGD rails with no correspondent bank needed.
Financial inclusion:
In Latin America and Africa, stablecoins offer a lifeline for the unbanked, providing dollar access in economies plagued by double-digit inflation.
Institutional efficiency:
Multinationals now use EURC and USDT for treasury transfers, saving days in settlement time and millions in fees.
Tokenised trade finance:
The EU, Singapore, and Japan are already piloting projects where stablecoins back letters of credit and supply-chain payments, fusing blockchain transparency with real-world commerce.
As transaction volumes head toward $15 trillion by 2027 (Fireblocks + Chainalysis forecast), these ten stablecoin-friendly nations have effectively laid the plumbing for the next monetary era.
The competition to host stablecoin activity isn’t just symbolic; it will determine who owns the next generation of global money flows.
For issuers, payment firms, and investors, these jurisdictions represent predictable ground where licenses, compliance, and liquidity can coexist. For everyone else, the race is on to catch up.
From Frankfurt to Singapore, Dubai to São Paulo, one truth unites policymakers: stablecoins are here to stay.
The stablecoin-friendly nations have proven that regulation and innovation are not opposites and they are prerequisites for global adoption.
They’ve shown that clear rules don’t slow progress; they accelerate it.
They’ve shown that when money becomes programmable, borders stop being barriers.
As stablecoin volumes march toward multi-trillion-dollar heights and central banks explore CBDC integration, these nations will define the architecture of the world’s next payment system.
For any company or investor seeking stability, compliance, and growth, the advice is simple:
Plant your flag in a stablecoin-friendly nation — the future of money is already there.
