Payward: Up To $600 Million Reap Acquisition Expands Stablecoin Payments Infrastructure - Pulse 2.0 — 2026-05-08

## Short Segments BlackRock challenges the OCC's stablecoin reserve cap under the GENIUS Act, signaling a potential shift in regulatory oversight. Paga partners with Sui to expand stablecoin and tokenized asset services across Africa, aiming to break payment barriers. ECB President Christine Lagarde warns that euro-denominated stablecoins pose a financial stability risk, diverging from the Bundesbank's stance. And Hong Kong's OSL joins Mastercard's Crypto Partner Program to advance stablecoin payments. BlackRock backs OCC stablecoin rules under the GENIUS Act. BlackRock has filed a 17-page comment letter with the Office of the Comptroller of the Currency, challenging the proposed 20% reserve cap on stablecoins under the GENIUS Act. The financial giant argues that the cap is unnecessary and that risk should be assessed based on credit quality, duration, and liquidity. This move comes as the stablecoin market cap surged from $260 billion to $304 billion, prompting issuers to purchase $44 billion in US Treasury bills to comply with federal mandates. The GENIUS Act shifts regulatory oversight for stablecoins from the Federal Reserve to the Treasury Department, marking a significant change in how the US government manages digital currencies. BlackRock's opposition to the reserve cap highlights the ongoing debate over stablecoin regulation and its impact on financial markets. As the comment period closes, the OCC will need to consider these industry perspectives before finalizing the rules. Paga expands into stablecoins and tokenized assets with Sui. Paga, one of Africa's oldest fintech companies, is partnering with Sui to enhance its financial infrastructure by integrating stablecoins and tokenized assets. This strategic collaboration aims to improve cross-border payments and financial accessibility across Africa. Tayo Oviosu, transitioning to Group CEO, announced the partnership as part of Paga's broader strategy to expand into new African markets. The partnership will focus on launching four key financial solutions designed to boost economic participation for Africans. By leveraging Sui's technology, Paga seeks to overcome existing payment barriers and provide more inclusive financial services. This move reflects a growing trend among fintech companies to adopt blockchain technology and stablecoins to enhance their service offerings and reach underserved markets. ECB’s Lagarde flags euro-denominated stablecoins as a financial stability risk. European Central Bank President Christine Lagarde has raised concerns about euro-denominated stablecoins, arguing they pose risks to financial stability and monetary policy. Lagarde's comments highlight a divergence from the Bundesbank's view, which sees potential benefits in using stablecoins for international transfers. The ECB is advocating for a digital euro as a more stable alternative, emphasizing the need for Europe to maintain monetary sovereignty. As stablecoins continue to grow in popularity, the ECB is wary of their potential to disrupt traditional financial systems. This debate underscores the broader tension between innovation in digital currencies and the need for regulatory oversight to ensure financial stability. Hong Kong Exchange OSL joins Mastercard’s Crypto Partner Program. OSL, a leading stablecoin trading and payment platform in Asia, has joined Mastercard's Crypto Partner Program to advance stablecoin payments. This collaboration aims to integrate stablecoins into the global payments ecosystem, making it easier for merchants to accept and consumers to use stablecoin payments. Mastercard's initiative seeks to foster cooperation among crypto-native companies, payment service platforms, and financial institutions. By partnering with OSL, Mastercard is expanding its efforts to incorporate stablecoins into mainstream financial services, reflecting the growing acceptance of digital currencies in global commerce. This move is part of a broader strategy to enhance payment capabilities and drive innovation in the financial sector. ## Feature Story Payward's $600 million acquisition of Reap Technologies marks a major expansion in stablecoin payments infrastructure. Payward Inc., the parent company of crypto exchange Kraken, has announced its acquisition of Reap Technologies, a Hong Kong-based stablecoin-native payments firm, for up to $600 million in cash and stock. This acquisition is a strategic move to enhance Payward's B2B platform by integrating Reap's global card issuing and cross-border payments capabilities. The deal values Payward at $20 billion and represents Kraken's first infrastructure acquisition in Asia, signaling a significant expansion of its stablecoin and payments infrastructure business in the region. Reap Technologies is known for its innovative approach to payments, offering a single API that integrates card networks, banking rails, and blockchains, settling transactions in stablecoins. This capability aligns with Payward's vision of providing always-on financial products through a unified financial infrastructure platform. By acquiring Reap, Payward aims to offer its partners a seamless integration point for financial services, enhancing the efficiency and reach of its platform. This acquisition follows Payward's recent purchases of Bitnomial exchange, futures broker NinjaTrader, and xStocks issuer Backed, as the company continues to expand its platform through targeted acquisitions. The integration of Reap's technology is expected to unlock globally regulated infrastructure for card issuance and stablecoin payments, providing a competitive edge in the rapidly evolving digital payments landscape. The acquisition is set to close in the coming months, and industry observers will be watching closely to see how Payward leverages Reap's capabilities to enhance its service offerings. As stablecoins gain traction as a preferred medium for cross-border transactions, Payward's expanded infrastructure could position it as a leader in the global payments ecosystem. This development underscores the growing importance of stablecoins in facilitating efficient and secure financial transactions across borders. With this acquisition, Payward is poised to play a pivotal role in shaping the future of digital payments, offering innovative solutions that bridge traditional financial systems with emerging blockchain technologies. As the landscape continues to evolve, the integration of stablecoin payments into mainstream financial services will be a key area to watch.