[Stablecoins Report] Risks, Challenges and Legal Framework of Stablecoins in Vietnam and Worldwide – Part 3
Stablecoins have emerged to reshape the way people transact, ushering in an era of digital finance that is fast and flexible. Alongside these benefits come risks and challenges that individuals and institutions alike must navigate—prompting countries around the world to quickly establish and refine legal frameworks to manage and develop this domain. Risks and Challenges of Stablecoins Despite their advantages, stablecoins carry significant risks and challenges for both users and the broader financial system. De-pegging and depreciation risks Although designed to maintain stability, stablecoins can lose their peg to reference values under certain conditions. This could be due to user panic and mass sell-offs, falling value of reserve assets (for crypto-backed types), or failure of operational algorithms (for algorithmic types). A notable example is the collapse of TerraUSD (UST) in May 2022. UST, an algorithmic stablecoin pegged to the USD via a mint/burn mechanism using the LUNA token, once reached a market cap of $18 billion. When confidence wavered, UST quickly lost its peg and crashed to nearly zero—causing tens of billions of dollars in investor losses. The “death spiral” not only destroyed UST/LUNA but also triggered a domino effect that led to the collapse of related funds and projects. Other stablecoins have also experienced de-pegging: Iron Finance’s IRON lost its value in 2021, USDT has temporarily dropped to $0.95 during market panic, and USDC fell to ~$0.88 in March 2023 due to reserve concerns before recovering. These incidents show that stablecoins are not “absolutely stable”—if reserve mechanisms are weak or unexpected events occur, stablecoins may crash in value, potentially resulting in total losses for investors. Risks in transparency and reserve assets For centralized (fiat-backed) stablecoins, trust in the issuer and reserves is paramount. A lack of transparency or failure to prove adequate reserves raises doubts. Tether (USDT) exemplifies this. For years, Tether faced criticism for not publishing independent audits, leading to concerns that USDT might not be fully backed by USD. Though Tether has since improved transparency (quarterly reserve reports) and claimed to hold ~$72.5 billion in U.S. Treasury bonds (as of Q2 2023), skepticism persists until a full audit is released. The quality of reserve assets is another issue: if reserves are invested in high-risk instruments (e.g., long-term bonds, low-quality commercial paper), market volatility can devalue reserves, threatening 1:1 redemption. Even reputable stablecoins like USDC were affected when ~$3.3 billion in reserves held at Silicon Valley Bank were frozen during its collapse—causing USDC to temporarily de-peg to ~$0.9. These cases highlight the necessity of high-quality, liquid reserves (cash or T-bills) to prevent systemic risk. As one expert said: “To avoid systemic risk, stablecoin reserves must be extremely safe and liquid.” Major events related to Stablecoins (2022–2023): Overall, the stablecoin market has undergone a “trust test”—well-reserved and transparent projects (like USDC) remained resilient, while weak or opaque ones were eliminated. Risks to the traditional financial system The rapid growth of stablecoins has raised concerns among regulators about systemic impacts. Large stablecoins like USDT and USDC hold massive reserves—Tether’s ~$72B in U.S. Treasuries is equivalent to a mid-sized bank or a major money market fund. A sudden stablecoin redemption wave (bank-run scenario) could force issuers to liquidate reserves, impacting money markets and traditional banking. Experts liken this to a looming “bank-run ghost” in crypto—without control, a widespread redemption event could destabilize both crypto and broader financial markets. Moreover, as private money issued outside central banks, stablecoins could divert deposits from commercial banks, weakening monetary policy tools and reducing banks’ lending capacity. A New York Fed report compares stablecoins to money market funds (MMFs): both aim to maintain a $1 value, but while MMFs are tightly regulated, stablecoins are not—posing potentially higher risks. There’s also concern that stablecoins may circumvent capital controls and AML/CFT regulations, allowing “hot money” to flow across borders unchecked. These concerns explain why regulators are on high alert and are pushing for stronger supervision frameworks to prevent systemic risks. In short, stablecoins are not risk-free. Users must understand each stablecoin’s mechanisms and credibility. Regulators must balance risk control (reserves, transparency, crime prevention) with innovation, as stablecoins can also benefit digital finance if properly managed. Legal landscape for Stablecoins in various countries Stablecoins straddle the line between currency and digital assets, prompting governments to explore legal frameworks. While approaches differ by country, the trend is toward increased oversight, ensuring reserves and reducing systemic risks. United States The U.S. has no unified federal law for stablecoins, resulting in fragmented regulation. The SEC considers some stablecoins securities, while the CFTC focuses on commodity-linked stablecoins (e.g., gold-backed). In 2021, the President’s Working Group on Financial Markets recommended regulating stablecoins like bank deposits. By 2023, draft federal legislation emerged (from the House Financial Services Committee) to set reserve and oversight requirements, but has not passed yet. Meanwhile, some states have acted: European Union (EU) The EU is a pioneer in digital asset regulation via the MiCA (Markets in Crypto-Assets) framework, adopted in 2023 and effective from 2024. MiCA categorizes stablecoins as: Requirements include: Oversight is shared between national regulators, ESMA (European Securities and Markets Authority), and the ECB for large stablecoins. MiCA limits the scale of non-euro stablecoins—if daily transactions exceed €200 million, usage may be restricted, preventing dominance by USD-backed coins. The EU aims to stabilize the stablecoin market and protect the euro. Major issuers like Circle are preparing to register under MiCA to continue operations in Europe. Singapore Singapore adopts a proactive, conditional approach to stablecoins. In 2022, the Monetary Authority of Singapore (MAS) stated that digital asset innovation is welcome—but not crypto speculation. Stablecoins, if well-regulated, could serve alongside CBDCs and tokenized bank deposits. In Aug 2023, MAS issued a regulatory framework for single-currency stablecoins (SCS) pegged to SGD or G10 currencies, issued in Singapore. Requirements include: Three entities (including Paxos and Circle via StraitsX) have received in-principle approval to issue compliant stablecoins—Singapore’s regulatory “sandbox” encourages innovation while ensuring safety. China China takes a strict stance on cryptocurrencies, including stablecoins. It has banned crypto trading, mining, and ICOs
SAVYINT secures two wins at the 2025 Sao Khue Awards on its first entry
Making a remarkable debut, SAVYINT triumphed at the 2025 Sao Khue Awards with two standout solutions—Enterprise Security Appliance – All in a Box and its Open Banking Platform—winning in the categories of Cybersecurity and Digital Banking, respectively. On April 19, the 2025 Sao Khue Awards Ceremony took place at the Military Theatre, drawing the attendance of key leaders from the Ministry of Information and Communications, executives from VINASA, prominent IT experts, and representatives from Vietnam’s leading technology enterprises. Both of SAVYINT’s award-winning solutions represent significant advancements in the fields of data encryption, digital identity, certificate management and digital banking. Notably, SAVYINT’s Open Banking Platform (BaaS) became the first solution in Vietnam specifically designed for the financial and banking sector to build and connect digital financial ecosystems, earning top honors in the Digital Banking category. Enterprise Security Appliance – All in a Box Following years of research and development in key management, PKI, and digital signature systems – and a deep understanding of enterprise challenges – SAVYINT introduced the Enterprise Security Appliance – All in a Box. This all-in-one solution integrates robust security features into a single hardware device, complete with a built-in Hardware Security Module (HSM). It enables organizations to encrypt data, establish electronic identities, deploy dedicated PKI systems, conduct remote signing, and manage digital certificates throughout their lifecycle. The appliance offers flexible functional modules, including: Tokenization, Electronic Authentication, Digital Identity, PKI System (CA, VA, TSA), Remote Digital Signing, Data Encryption, SCA/FIDO2, End-to-End Encryption (E2E), Data Privacy, Transaction Signing Compact, portable, and easy to deploy, the solution seamlessly integrates with existing IT infrastructures and can be customized or scaled to meet specific business needs—ensuring long-term adaptability. All hardware and software components, along with system operations, comply with the highest international standards for security and legal compliance: Leveraging its status as a Qualified Trust Service Provider (QTSP) under the EU’s eIDAS framework, SAVYINT empowers clients to build tailored Enterprise Security Appliances with remote signing capabilities—fully independent of third parties and optimized for cost-effectiveness and compliance. Open Banking Platform (BaaS) Open banking represents the future of the financial services industry. Around the world, this model has seen rapid evolution. In Vietnam, the State Bank’s Circular No. 64/2024/TT-NHNN on open API implementation marks a major milestone for open banking development in 2025 and beyond. SAVYINT’s Open Banking Platform is the first solution in Vietnam developed to meet both legal and technological demands for creating a comprehensive open banking ecosystem—paving the way for financial inclusion in the digital era. Consumer-centric and API-first, the platform seamlessly integrates cutting-edge technologies such as IoT, Big Data, AI, and Open API. Operating within a transparent and innovative financial ecosystem, it enhances service efficiency and fosters digital transformation. Key components include: As regulatory frameworks solidify and IT infrastructure becomes increasingly robust, now is the optimal time for banks, financial institutions, and fintech companies to embrace open banking—unlocking new revenue streams and elevating customer experience. SAVYINT’s recognition at the 2025 Sao Khue Awards is a testament to its pioneering spirit and unwavering commitment to technological innovation. By developing high-impact IT solutions, SAVYINT is helping businesses and institutions build smart, secure digital ecosystems—supporting Vietnam’s national digital transformation and aligning with global tech trends. About the Sao Khue AwardsHosted annually by the Vietnam Software and IT Services Association (VINASA) under the patronage of the Ministry of Information and Communications, the Sao Khue Awards have honored 1,715 individuals, companies, and IT solutions since their inception in 2003. The awards represent the most prestigious recognition in Vietnam’s IT industry and are highly trusted by both the business community and the broader technology market. Event highlights:
[Stablecoins Report] Stablecoins and CBDCs: Definitions and Objectives – Part 2
Stablecoins and Central Bank Digital Currencies (CBDCs) are widely regarded as powerful instruments for advancing traditional financial systems. They promise to usher in a more inclusive, efficient, and cost-effective global financial landscape. 1. Understanding Stablecoins and CBDCs Both stablecoins and CBDCs are forms of digital currency with stable values typically pegged to fiat money. However, they differ significantly in terms of issuing authorities, governance mechanisms, and several other key aspects: • Issuing Authorities Stablecoins are issued by private entities or decentralized organizations (e.g., Tether, Circle, MakerDAO), whereas CBDCs are issued directly by a country’s central bank. In essence, CBDCs represent state-backed digital versions of national currencies, while stablecoins function as “private money” governed by corporations or communities. • Collateral and Value Assurance CBDCs are recognized as legal tender in some countries, backed by the “full faith and credit” of the government, ensuring their value and usability. In contrast, stablecoins rely on collateral assets or algorithmic mechanisms promised by the issuers. Their value assurance is tied to the issuer’s credibility and reserves, without any governmental guarantee—introducing credit risks not present in CBDCs, which are virtually risk-free like cash. • Technology and Distribution Stablecoins are inherently built on distributed ledger technology (DLT), most commonly blockchain. Users manage stablecoins via personal digital wallets and engage in peer-to-peer transactions over the internet. Conversely, CBDCs are typically developed using centralized ledger technologies. Distribution models vary by country and include: While CBDCs can adopt DLT, they usually employ private versions where the central bank or authorized parties retain control—unlike the open, permissionless nature of public blockchains. • Transparency and Privacy Stablecoin transactions on public blockchains are highly transparent—every transaction is recorded and can be traced using blockchain explorers. However, user anonymity is relatively preserved since wallet addresses aren’t directly linked to real-world identities. CBDCs, on the other hand, are designed with more stringent oversight. Central banks can often access detailed user transaction data (e.g., China’s PBoC can trace all e-CNY transactions). Privacy levels vary by country, but full anonymity—like with cash—is generally avoided due to concerns about financial crime. • Integration with Financial Systems CBDCs integrate seamlessly into national financial systems and monetary policy frameworks. Central banks can regulate the supply of CBDCs and set policies like usage limits or interest rates. Stablecoins operate independently of these systems, and central banks can only influence their supply indirectly through regulation. This independence has raised concerns among regulators who see unregulated stablecoins as potential threats to monetary policy and systemic stability. Nevertheless, with proper regulation, stablecoins and CBDCs can coexist and complement each other. As Singapore’s stance suggests: “Stablecoins can be useful alongside CBDCs if risks are well-managed.” 2. Objectives of CBDCs and Stablecoins Enhancing Payments and Transactions In several countries, both CBDCs and stablecoins are already being used for everyday payments and peer-to-peer (P2P) transfers. Stablecoins offer low-cost, near-instant transactions, enabling users to make payments, shop, or send money directly without going through banks. In China, the e-CNY has been piloted in over 20 major cities including Shenzhen, Beijing, and Shanghai… Citizens can use digital wallets for offline purchases, subway rides, and bill payments. e-CNY is also integrated with popular payment platforms like WeChat Pay and Alipay, boosting accessibility and convenience. Expanding Financial Inclusion In countries with underdeveloped banking systems, stablecoins offer a viable alternative for value exchange, ensuring that transactions can occur even without access to banking services. Digital currencies drive innovation in both technology and economic models, acting as catalysts for digital economies and societies. For instance, migrant workers use stablecoins to send remittances home, bypassing high fees and bureaucratic hurdles associated with traditional money transfer services. Similarly, in Nigeria—where a large portion of the population is unbanked—the Central Bank launched the eNaira in 2021. According to government statistics, millions of new users gained access to financial services through the CBDC, helping bridge the digital divide and support marginalized communities. Facilitating Cross-Border Trade Stablecoins significantly simplify cross-border payments by reducing costs and transfer times. Transactions are nearly instantaneous and much cheaper than traditional bank transfers or services like Western Union. CBDCs also aim to improve cross-border transactions, often through international collaborations. Notable projects include: Powering Decentralized Finance (DeFi) Stablecoins serve as foundational assets in the DeFi ecosystem. Due to their price stability, they are widely used as collateral or borrowing assets in blockchain-based lending platforms. The advent of stablecoins has greatly expanded DeFi’s reach, allowing users to trade and invest without the volatility typical of traditional cryptocurrencies. Preserving Value Amid Inflation and Currency Instability In countries facing high inflation, USD-pegged stablecoins help citizens preserve the value of their assets. Instead of holding rapidly depreciating local currency, people turn to stablecoins as a safe haven. In Nigeria, for example, where the naira depreciated sharply in 2024, stablecoins became a popular choice—helping the country become the world’s second-largest crypto user. These digital dollars enable individuals to save value without needing foreign bank accounts, serving as an effective hedge in unstable economies. Strengthening Monetary Policy and Sovereignty By issuing CBDCs and aggregating user data from wallet providers, central banks gain precise tools to manage money supply and monitor cash flow in real-time. This enhances the effectiveness of monetary policy by reducing reaction time and improving decision-making accuracy. CBDCs also help preserve national monetary sovereignty in the face of competing digital currencies. Unlocking Opportunities for Fintech Innovation CBDCs or stablecoins could attract domestic fintech companies to participate in emerging technology markets—such as the development of open banking products, decentralized finance (DeFi), or cloud-based services—thereby enhancing the country’s financial infrastructure.They also help position a nation as a digital innovation and tech-startup-friendly environment, while still maintaining financial and monetary stability. Stablecoins and CBDCs are promising solutions that can drive the growth of the digital economy.Stablecoins offer flexibility and are widely adopted by the private sector and in emerging markets, whereas CBDCs act as state-led tools to modernize financial systems and improve control over money flows. CBDCs are expected to shape the future of national currencies in the digital era. The
[Stablecoins Report] What Are Stablecoins? Popular Stablecoins Today – Part 1
In the volatile world of cryptocurrency, stablecoins have emerged as a type of digital asset designed to maintain a stable value by being pegged to traditional assets such as fiat currencies or commodities. More than just a medium of exchange, stablecoins play a vital role in decentralized finance (DeFi) and hold the potential to revolutionize the global financial system. 1. Understanding Stablecoins A stablecoin is a type of cryptocurrency engineered to maintain price stability by pegging its value to an external reference asset—typically a fiat currency like the US Dollar. The main goal of stablecoins is to combine the advantages of cryptocurrencies (such as fast, borderless, peer-to-peer transactions) with the price stability of traditional assets. Each unit of stablecoin is usually backed by an equivalent amount of a real-world asset (e.g., 1 USDT backed by 1 USD), ensuring its value remains close to a 1:1 peg. Key characteristics of stablecoins: Thanks to these benefits, stablecoins are acting as a bridge between the crypto economy and traditional finance, helping mitigate price volatility in crypto markets. 2. Types of Stablecoins Stablecoins use different mechanisms to maintain their value. Based on the underlying collateral and price-pegging method, they can be classified into the following main categories: • Fiat-Collateralized Stablecoins This is the most common type, backed by reserves of fiat currency held by a centralized issuer. Each stablecoin in circulation is matched by an equivalent amount of fiat currency (e.g., USD, EUR) stored in a bank account.Examples: Tether (USDT), USD Coin (USDC) – both pegged 1:1 to the US Dollar. • Commodity-Backed Stablecoins These are pegged to physical assets such as gold or oil.Example: Tether Gold (XAU₮) – each XAU₮ token is backed by one troy ounce of physical gold held in reserve. This enables users to hold commodities in a digital format. • Crypto-Collateralized Stablecoins These are backed by other cryptocurrencies (such as ETH or BTC). Due to the volatile nature of crypto assets, overcollateralization is typically required. This means $1 worth of stablecoin is often backed by $1.5–2 worth of crypto. This buffer helps maintain the peg even if the backing asset declines in value.Example: DAI (MakerDAO) – designed to track the US Dollar. Users lock crypto assets (e.g., ETH, USDC) in smart contracts to mint DAI. If the collateral value drops too low, the system automatically liquidates it to maintain full backing and price stability. • Algorithmic Stablecoins These stablecoins may have little to no collateral and maintain their peg through algorithms and market mechanisms. Instead of holding reserves, the protocol adjusts the stablecoin’s supply in response to market demand.Smart contracts automatically mint or burn tokens when the price deviates from the target peg.Examples: Ampleforth (AMPL), which adjusts daily token supply to stabilize price, or FRAX, which initially used a hybrid model of partial collateral and algorithmic stabilization. The benefit of this model is full decentralization, as it doesn’t rely on a centralized reserve. However, it carries high risk—market confidence is crucial. If the algorithm fails, the peg can collapse completely.Case in point: The crash of TerraUSD (UST) in 2022, a former leading algorithmic stablecoin, which lost its peg entirely. Other classification approaches: Still, the three main categories—fiat-backed, crypto-backed, and algorithmic—form the foundation of most stablecoins in today’s market. Each comes with trade-offs regarding stability, decentralization, and reliance on trusted third parties. 3. Most Popular Stablecoins Today (Market Cap, Mechanism, Transparency, Adoption) The stablecoin market has seen rapid growth, with hundreds of projects launched. However, most of the market capitalization is concentrated in a few key players. Below is an overview of major stablecoins, comparing their mechanisms, scale, and trustworthiness: Stablecoin Type & Collateral Price Pegging Mechanism Market Cap (USD) Transparency & Trust Popularity USDT (Tether) Fiat (USD) Fully backed by reserves of cash and US Treasury bills held by Tether ≈ $80B (largest) Widely used but has faced scrutiny over reserve transparency Most widely adopted globally; accounts for ~2/3 of stablecoin supply; high liquidity on CEXs and DeFi USDC (Circle) Fiat (USD) Fully backed by reserves held by Circle’s licensed banking partners (cash & US Treasuries) ≈ $25–30B (2nd largest) Highly transparent: weekly attestations, reserves held in reputable US banks; governed by Center (Circle & Coinbase) Highly trusted, second-most popular; adopted by financial institutions; integrated into DeFi and payment systems (e.g., Visa, Mastercard pilots) DAI (MakerDAO) Crypto (multi-asset) Overcollateralized by crypto assets (ETH, USDC, WBTC, etc.) locked in smart contracts; auto-liquidation if collateral value drops ≈ $5B (largest decentralized stablecoin) Fully on-chain transparency; governed by MakerDAO community; partially reliant on centralized assets like USDC Popular in DeFi: widely used in lending protocols, yield farming, and viewed as a leading decentralized stablecoin FRAX (Frax Finance) Hybrid: crypto & algorithmic Initially partially collateralized (USDC + crypto) and algorithmically managed via FXS token; after Terra crash, moved to 100% collateralization ≈ $1B (Top 5 in 2023) Transparent mechanism and collateral; governed by DAO; move to full collateral improved credibility; still reliant on crypto assets and unaudited Innovative hybrid model; once the most successful algorithmic stablecoin; used in select DeFi protocols and communities, but scale remains smaller than USDT/USDC Other notable stablecoins include: Despite increasing competition, USDT and USDC dominate the market in both volume and liquidity, forming the backbone of most global crypto transactions.
Stablecoins in Vietnam: Current situation and prospects
Stablecoins are becoming an increasingly hot topic within Vietnam’s financial and tech communities. Although not legally recognized as a means of payment, stablecoins have been quietly growing in popularity in investment as well as crypto. So, where do stablecoins currently stand in Vietnam’s digital finance landscape, and what does the future hold for them? 1. Legal status of stablecoins in Vietnam As of now, stablecoins are not recognized as a legal means of payment under Vietnamese law. The State Bank of Vietnam (SBV) has declared that the issuance, provision, and use of Bitcoin and similar virtual currencies — including stablecoins — as a form of payment is illegal and subject to administrative fines ranging from VND 150 to 200 million. Any form of payment using stablecoins — whether USDT, USDC, or other tokens — is strictly prohibited. However, while payment via stablecoins is banned, the government does not prohibit the holding or trading of cryptocurrencies as a form of digital asset. In recent years, the government has taken initial steps toward regulating the digital asset sector. For instance, the 2022 Anti-Money Laundering Law was the first to officially include virtual assets within its regulatory scope. Moreover, initiatives like Decision 1255/QĐ-TTg (2017) and the Ministry of Finance’s formation of a research group on cryptocurrency in 2020 show that the Vietnamese government is gradually moving toward establishing a legal framework for this emerging sector. 2. Stablecoin usage in Vietnam Despite the lack of a clear legal framework, Vietnamese users widely utilize stablecoins in investment and crypto-related activities, notably within these main groups: 3. Vietnamese businesses and startups involved in stablecoins Within Vietnam’s blockchain ecosystem, several businesses and projects are either developing or integrating stablecoin-related technologies: VNDC was among the first domestic stablecoin projects, pegging 1 VNDC = 1 VND and operating as a fiat-backed token on blockchain. Though not officially licensed, VNDC and the ONUS platform have attracted millions of users. Today, ONUS continues as a crypto investment platform, with VNDC coexisting alongside international stablecoins. International entities like Binance and Stably have launched VND-pegged stablecoins such as BVND and VNDS. However, these coins have yet to gain significant traction, due in part to low public trust and a lack of legal backing in Vietnam. A few small fintech firms have started using stablecoins for cross-border remittances, though end users still receive VND. Meanwhile, Vietnamese blockchain company TomoChain has collaborated on stablecoin/CBDC development for other countries such as Laos — highlighting Vietnam’s potential in both technology and talent for digital finance. 4. Future directions and outlook for Stablecoins in Vietnam So far, regulators have remained cautious and have not moved to legalize stablecoins. Instead, the State Bank of Vietnam is prioritizing research into launching a central bank digital currency (CBDC). This reflects the government’s interest in digital currency, but with a preference for state-issued and controlled solutions over privately developed stablecoins. Looking ahead, several developments are possible: At present, stablecoins in Vietnam remain in a legal gray area. While their use is thriving in the crypto community, the regulatory framework is still under construction. In the future, as the government continues to prioritize digital transformation and digital currency initiatives, stablecoins may be brought under a clearer legal structure — or be complemented, if not replaced, by a state-controlled CBDC. Key stakeholders — including the SBV, Ministry of Finance, and industry associations — are closely monitoring international developments to shape Vietnam’s policy on stablecoins.
2025 – The Year of Payment Stablecoins (PSC)
Payment stablecoins are transitioning from peer-to-peer transactions to mainstream B2B and B2C payment applications, driving significant changes in traditional payment systems—an area traditionally dominated by banks. According to Deloitte, 2025 is poised to be the year of payment stablecoins. 1. What is a Stablecoin? A stablecoin, as the name suggests, refers to a “stable” currency, meaning reliable, balanced, and secure. By pegging its value to fiat currency or gold, stablecoins maintain a stable price while leveraging blockchain’s decentralized nature, ensuring security and strict control. Payment Stablecoins (PSC) are a specific type of stablecoin designed for payment purposes. They have the potential to enhance payment systems, reduce transaction costs, and promote financial inclusion. However, if not properly managed, they could also pose systemic risks. 2. The Growth of Stablecoins PSC has seen rapid growth in recent years, with market capitalization reaching hundreds of billions of USD. These stablecoins are widely used in cryptocurrency transactions, cross-border payments, and decentralized finance (DeFi). 3. Regulations and Policies Governments worldwide are seeking to regulate PSC to ensure transparency and mitigate financial risks. Countries like the U.S., the EU, and Singapore have proposed new regulatory frameworks to oversee this market. In the U.S., PSC issuance has primarily been driven by non-bank entities and crypto companies. However, the competitive landscape is shifting as the U.S. moves toward a clear and consistent national regulatory framework for PSC issuance. Looking ahead to 2025, various factors are encouraging traditional financial institutions (non-crypto firms) to consider becoming PSC issuers. These factors include the increasing market capitalization and transaction volume of fiat-backed stablecoins, signals from the new administration, regulatory agencies, and legislative developments in Congress aimed at establishing PSC regulations. 4. Trends in 2025 5. The Potential of PSC PSC enables instant, low-cost payments, encouraging users to shift from traditional financial or payment systems to blockchain networks. Additionally, PSC mitigates the risks and volatility associated with non-fiat-backed cryptocurrencies (e.g., Bitcoin). With PSC market capitalization surpassing $200 billion, more businesses are developing platforms that facilitate PSC transactions. To date, PSC market capitalization and trading volume have primarily stemmed from cryptocurrency and digital asset transactions. PSC has provided a stable medium of exchange, particularly during periods of market volatility. However, its applications are expanding beyond digital asset trading. PSC is now used for remittances and payments unrelated to digital assets, offering a faster and more cost-effective alternative to traditional financial systems. In many cases, PSC is being adopted as an extension or substitute for fiat currency. For PSC to reach its full potential, further advancements are needed to overcome barriers in retail and commercial payments. This includes improving technological infrastructure and encouraging broader adoption by financial institutions, businesses, and consumers. By addressing these challenges, PSC can drive significant changes in global financial transactions, making them faster and more cost-efficient. 6. Risks of PSC While PSC offers numerous opportunities, it also comes with significant risks that issuers must navigate, particularly as they operate in both traditional financial regulatory environments and the crypto ecosystem. Despite these challenges, payment stablecoins continue to grow rapidly and hold the potential to become a crucial financial instrument in the global economy due to their widespread usability and low-cost transactions. 2025 could mark a significant turning point for PSC in terms of market capitalization, transaction volume, and regulatory developments. The market awaits new developments with anticipation. Source: Deloitte
Blooming your way – Celebrate your own beauty
March arrives, carrying the lingering chill of spring, along with gentle, refreshing breezes that sweep through every corner. March becomes even more gracefully beautiful with the celebration of one half of the world’s population on International Women’s Day, March 8th. At Savyint, our ladies had a joyful and laughter-filled day. With the theme “Blooming Your Way,” they enjoyed a special experience, transforming into muses posing with flowers, engaging in creative arts, and receiving surprise gifts from their male colleagues. Flourishing colors – Acrylic painting workshop The celebration at Savyint started with an exciting acrylic painting workshop titled “Flourishing colors.” The “Flourishing colors” workshop was a gift from the company and male colleagues, offering a creative escape for the women on this special day. With the guidance of skilled mentors, even those who had never painted before or had just a touch of artistic inclination confidently created their own works of art. From one joyful moment to another, the ladies were further surprised with delicious bubble tea carefully selected by their male colleagues. Beauty, art, and tea—what more could one ask for? Though there were moments of clumsiness, everyone ended up with a vibrant, unique painting filled with personality. A cozy feast to celebrate International Women’s Day and March birthdays The celebration didn’t stop at International Women’s Day. Toward the end of the day, the Savyint family gathered for a cozy feast with delicious food and cakes to celebrate the birthdays of March-born colleagues. We extend our thanks and well wishes to all members, hoping the year ahead brings them joy and success both at work and in life. March 8th concluded with a sense of nostalgia for many. Women are not only the heart of every family but also exceptional leaders and resilient colleagues in the workplace. Their contributions and dedication serve as a tremendous driving force for Savyint’s growth, helping us overcome challenges and reach new heights. Once again, we wish all the women at Savyint a joyful, happy, and fulfilling International Women’s Day! Here’s a look back at some memorable moments from International Women’s Day at Savyint:
VPBank uses SAVYINT’s remote signing solution for all employees and customers
With a focus on comprehensive digital transformation for many years, VPBank has successfully implemented digital services with SAVYINT’s remote signing. Thanks to the application of a synchronous and comprehensive digital signature solution system, VPBank has significantly shortened the time from signing contracts with employees to processing personal online loans, opening corporate accounts, ensuring maximum legality and security in all signing processes. Overview Industry: Finance – Securities Project: Implementation of remote signing service for individual and corporate customers to sign loan agreements and account opening contracts on VPBank’s digital channels Timeline: 2021 – Present VPBank and the problem of remote digital signature for individual customers and businesses Founded in 1993, VPBank – Vietnam Prosperity Joint Stock Commercial Bank has more than 250 branches and transaction offices nationwide, focusing on providing financial services to individual customers, businesses and organizations, leading with the strategy of digitization and retail banking. With the goal of providing 100% of products and services through digital channels, bringing a better customer experience, VPBank has long focused on implementing a comprehensive digital transformation strategy. The focus of this strategy is VPBank NEO – an online banking application that allows customers to make transactions such as wire transfers and bill payments of less than VND 5 million without entering an OTP code or pin code, thanks to modern biometric authentication technology. The establishment of VPBank NEO also leads to the requirement of a remote digital signature solution that can meet the increasing demand for online transactions and convenience for customers while ensuring the security and legality of contracts and papers at the highest level. VPBank determined that an effective remote digital signing solution not only helps shorten the time to process transactions and sign contracts but also minimizes dependence on traditional processes and improves the bank’s operational efficiency. SAVYINT has implemented synchronous digital signing solutions for VP Bank With a wealth of experience in implementing digital signature solutions, SAVYINT has for many years been Vietnam’s LEADING provider of public digital signature authentication services, SAVYINT Timestamp certification services and QTSP trusted services for digital signature and electronic seal services guaranteed by the QTSP Remote Signing model. With VPBank’s problem, SAVYINT has implemented synchronous digital signing solutions: All customers, bank staff sign documents and contracts electronically After the synchronous implementation of SAVYINT remote singing, all individual customers using online loan products on VPBank NEO digital banking application can easily register and be disbursed in just a few minutes through signing an electronic contract. For business customers, the time to open an online account has been shortened to 90%, completed in only 5 minutes. All records are digitally signed remotely without the use of a USB Token device. All officers and employees of VPBank can sign an electronic labor contract after receiving an employee account on the internal system with a legality equivalent to a paper contract, ensuring a confidential and accurate signing process. The contract and appendix renewal process is quickly implemented on the internal HR management system – SAP, which significantly saves time as well as improves the bank’s operational efficiency in the long run.
SAVYINT comprehensively upgrades the CA system for Sacombank
Sacombank – One of the leading banks in Vietnam, faced a major challenge when the old Private CA system became obsolete, failing to meet the current security and legal requirements of electronic signatures. In order to ensure safety and optimize working processes, Sacombank has cooperated with SAVYINT to comprehensively upgrade the CA system, completely overcome the disadvantages of the old system. Overview Industry: Finance – Banking Project: – Upgrade of the Private CA system for Sacombank – Implementation of remote digital signing for individual customers Timeline: 2021 – Present Sacombank’s problem Saigon Thuong Tin Commercial Joint Stock Bank Sacombank is one of the largest joint-stock commercial banks in Vietnam, established in 1991. To date, Sacombank has more than 560 branches and transaction offices across Vietnam, and expanded its operations in Laos and Cambodia. Sacombank specializes in providing financial services to individuals and businesses, focusing on retail, digital banking and card services. Many years ago, Sacombank implemented a Private CA (Certificate Authority) system to manage and authenticate electronic signatures for internal transactions and digital documents. This system helps Sacombank ensure the confidentiality, integrity, and authentication of electronic document signing processes, and supports the verification of user identity in online transactions. However, after a period of no maintenance, the old technology along with not receiving support from the deployment partner, the Private CA system becomes obsolete. In particular, when NEAC – National E-Signature Certification Center requires financial – banking institutions to ensure safety and compliance with e-signature regulations, Sacombank needs a more modern CA solution to overcome the above limitations. Comprehensive CA solution from SAVYINT: Meet the highest requirements for information performance, security and security As a leading reliable service provider in the market, for many years, SAVYINT has always been in the TOP 10 information technology enterprises in Vietnam, providing Platforms – Services – Solutions for Digital Transformation, Information Security and Fintech. Along with a team of experts with high expertise and experience in successful implementation for many organizations in the Finance – Banking sector, SAVYINT has conducted a survey and proposed to implement a complete CA system, fully integrating the necessary components to meet NEAC’s safety standards. This solution includes: Core CA server system with SAM Fujitsu and OpenShift License are also deployed to ensure stability and performance. All solutions are built on the OpenShift platform and Oracle database, suitable for Sacombank’s current infrastructure. Sacombank successfully converted and operated the new CA system After a rapid implementation process, Sacombank was able to operate a modern, stable, high-performance and flexible CA system to expand as needed. In addition, the synchronous application of solutions on HSM, webRA, digital signing helps Sacombank to easily manage and issue digital certificates, improve the efficiency of security digital signing for documents and contracts working with customers as well as within the bank. The new CA system is invested to completely overcome the problems of the old system, increase efficiency in the management process, sign documents and ensure the safety of online transactions.
SAVYINT successfully implements the digital signature system for VIB corporate customers
SAVYINT successfully implements Signing Server, managed digital certificates for WebRA for VIB, helped the bank operate efficiently and safely, significantly reduced the number of paper documents, and met the highest security standards in the finance – banking industry. Overview Industry: Finance – Banking Project: – Deployment of a digital signature system for VIB’s corporate clients – Issuance and management of digital certificates for internal banking operations Time: 2021 VIB and the problem of signing e-contracts for corporate customers Established in 1996, VIB is one of the thriving joint-stock commercial banks in Vietnam, focusing on retail banking with card products, home loans, auto purchases and digital banking. Identifying digital transformation as the focus of its development strategy to become a leading retail bank in terms of scale and quality, VIB continuously focuses on customers as well as technology to develop and operate the system. With the desire for strong digital transformation, VIB seeks a solution that can conveniently sign contracts, credits, disbursements… to serve VIP business customers, not only easy operation for customers, but also must meet all security criteria as well as current legal regulations on digital signing. In addition, VIB also requested to test a secure e-sign solution with a timestamp. The implementation roadmap is divided into two phases: Solution from SAVYINT Confirming its pioneering position in digital signature and electronic storage, SAVYINT is a leading provider of Public Digital Signature Certification Services, SAVYINT Timestamp Certification Services and Trusted Services (QTSP) in digital signature and electronic seal with the only QTSP Remote Signing solution in Vietnam. With a wealth of experience, providing a variety of digital signing solutions for many businesses and organizations in the Finance – Banking sector, SAVYINT conducts a survey on the current situation and proposes a synchronous implementation of the solution system: In which Successfully helped VIB implement a digital signature system for business customers After a period of implementation, Signing Server software is operated on schedule and meets the highest requirements of technical standards as well as security criteria in the finance – banking industry. VIB’s enterprise customers can now use USB Tokens, HSM digital certificates or Remote Signing, significantly reducing the number of paper documents, saving printing and delivery costs. In parallel, WebRA software has officially come into operation, quickly serving the need to issue and manage digital certificates for staff and branch leaders, contributing to improving internal operational efficiency. In particular, the timestamp granting service Timestamp is highly appreciated for its applicability to help prevent fraud, counterfeiting of the highest level, ensuring safety as well as information security for customers.