Monfi Bank, a licensed digital bank based in Malaysia, announced from Singapore the launch of Monfi USD (MUSD), a dollar-pegged stablecoin. The bank says each unit is backed one-to-one by US dollar cash in a segregated account on its balance sheet and is redeemable at par. The token targets institutional and qualified clients and runs on the Ethereum network. The infrastructure comes from Estable and Tether's Hadron platform.

What it means: Stablecoin issuance by banks is one of the most important trends of the year. Until recently the market was dominated by companies outside the banking system, such as Tether and Circle, while now more licensed banks are testing their own tokens. The argument is that a bank is subject to capital requirements, supervision and audits, so clients may trust the reserve more. The notable detail here is the partnership with Tether's platform, which shows stablecoin issuers turning into technology providers for others. The claim that this is the only regulated bank-issued stablecoin comes from the company itself and has not been independently verified. In the EU, MiCA lets credit institutions issue e-money tokens, with specific rules on reserves and redemption, and some European banks are preparing euro stablecoins. For European users, a non-EU stablecoin cannot be freely offered by licensed providers without compliance. The picture shows the market moving towards more, and more regulated, issuers.

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