The Rise of Regulated Stablecoin Infrastructure and 1Money’s Strategic Position in the Market

The stablecoin market, now a $214 billion sector, is undergoing a seismic shift as regulators and institutions demand stricter compliance and interoperability between blockchain and traditional finance [1]. At the forefront of this transformation is 1Money, a startup that has secured 34 U.S. Money Transmitter Licenses (MTLs) and a Class F Digital Asset Business license from Bermuda’s Monetary Authority [2]. These regulatory milestones position 1Money as a high-conviction investment opportunity in the evolving digital payments ecosystem, offering a unique blend of compliance, scalability, and institutional-grade infrastructure.

Regulatory Milestones: A Foundation for Institutional Trust

1Money’s regulatory achievements are unprecedented in the stablecoin space. By obtaining 34 MTLs across U.S. jurisdictions and a Bermuda Class F license, the company has established a full-stack stablecoin infrastructure that bridges blockchain and traditional banking systems [3]. This regulatory footprint enables 1Money to offer services such as multi-currency fiat virtual accounts, stablecoin minting, and cross-border payments—all while adhering to stringent compliance standards [4].

In contrast, dominant players like Tether and Circle face scrutiny over their reserve transparency and regulatory alignment. For instance, Tether’s USDT, while holding $150 billion in supply, remains entangled in legal challenges, while Circle’s USDC, with $61 billion in supply, relies on its Arc blockchain to emphasize compliance but lacks the same breadth of institutional integration as 1Money [5]. By securing licenses in both U.S. and international markets, 1Money mitigates regulatory risks and positions itself as a trusted partner for institutions seeking to navigate the fragmented compliance landscape.

Competitive Differentiation: Bridging TradFi and Web3

1Money’s value proposition lies in its ability to orchestrate stablecoin flows across traditional financial rails and blockchain infrastructure. Its Layer 1 protocol, the 1Money Network, is designed for low-cost, high-throughput stablecoin transactions, while its orchestration services enable seamless fiat on/off ramps and digital asset custody [6]. This dual-layer approach addresses a critical gap in the market: the need for interoperability between blockchain-native and traditional financial systems.

Competitors like Circle and Tether are building purpose-built blockchains (e.g., Arc and Plasma) but struggle to replicate 1Money’s regulatory agility. For example, Tether-backed Plasma faces adoption challenges due to USDT’s dominance on Tron, while Stripe’s Tempo blockchain, though promising, is still in its early stages [7]. Meanwhile, 1Money’s partnerships with institutional clients and governments—such as its collaboration with the Republic of Palau to launch a U.S. dollar-backed stablecoin—validate its ability to scale in regulated environments [8].

Financial Backing and Market Adoption: A Recipe for Growth

1Money’s strategic positioning is further reinforced by its financial backing and market adoption. The company has raised $20 million in seed funding, supported by venture capital firms like Hub71, A100x Ventures, and Bankless Ventures [9]. This capital infusion underscores investor confidence in 1Money’s mission to redefine global payments. Additionally, the company’s infrastructure has already facilitated $94.2 billion in stablecoin transactions between January 2023 and February 2025, with 90% of surveyed institutional executives in traditional finance either using or exploring stablecoins [10].

The growing demand for stablecoin infrastructure is evident in the broader market. Traditional payment giants like Visa, Mastercard, and Shopify have expanded their stablecoin offerings, while institutional interest in real-world asset (RWA) tokenization is surging [11]. 1Money’s ability to support both stablecoin and RWA issuers—enabling them to mint tokens and connect with traditional banking systems—positions it to capture a significant share of this expanding market.

Investment Thesis: A High-Conviction Play

The case for 1Money as a high-conviction investment rests on three pillars:
1. Regulatory Leadership: Its 34 MTLs and Bermuda license create a moat against competitors, ensuring compliance in a sector where regulatory missteps can be fatal.
2. Institutional Adoption: Partnerships with governments and financial institutions validate its infrastructure’s scalability and reliability.
3. Market Timing: As stablecoins represent 10% of crypto’s total market cap and institutional demand grows, 1Money’s full-stack solution is uniquely positioned to dominate the regulated stablecoin infrastructure niche.

With the stablecoin market projected to exceed $300 billion by 2027, 1Money’s strategic alignment with regulatory trends and institutional needs makes it a compelling long-term investment. For investors seeking exposure to the next phase of digital payments, 1Money’s regulatory milestones are not just a signal—they are a catalyst.

Source:
[1] Stablecoins Could Become One Of The US Government's [https://www.ark-invest.com/articles/analyst-research/stablecoins-as-a-us-financial-ally]
[2] 1Money Secures 34 U.S. Money Transmitter Licenses and Bermuda BMA Class F License to Support Stablecoin Payments Worldwide [https://www.businesswire.com/news/home/20250904212056/en/1Money-Secures-34-U.S.-Money-Transmitter-Licenses-and-Bermuda-BMA-Class-F-License-to-Support-Stablecoin-Payments-Worldwide]
[3] Stablecoin Startup 1Money Gains 34 US Licenses [https://cointelegraph.com/news/1money-stablecoin-infrastructure-licenses]
[4] 1Money Secures US And Bermuda Licenses To Build Stablecoin Payments Blockchain [https://financefeeds.com/1money-secures-us-and-bermuda-licenses-to-build-stablecoin-payments-blockchain]
[5] Head-on competition with Tether? An in-depth analysis of... [https://www.panewslab.com/en/articles/f71fa44a-675c-4fb9-920a-ddf355119362]
[6] Hub71 Startup 1Money secures over 30 U.S. money [https://www.zawya.com/en/press-release/companies-news/hub71-startup-1money-secures-over-30-us-money-transmitter-licenses-and-bermuda-bma-class-f-license-qiqokmm0]
[7] Stripe and Circle Are Launching L1 Blockchains (TWS 8/14) [https://www.thisweekinfintech.com/stripe-and-circle-are-launching-l1-blockchains-tws-8-14/]
[8] Republic of Palau’s Stablecoin Collaboration [https://blockchain.news/businesswire]
[9] 1Money Network - Valuation, Funding & Investors [https://pitchbook.com/profiles/company/734745-25]
[10] Stablecoin payment processor 1Money secures 34 US ... [https://www.tradingview.com/news/cointelegraph:bbde4a227094b:0-stablecoin-payment-processor-1money-secures-34-us-money-transmitter-licenses/]
[11] Deep Dive | Plasma | Redefining How Money Moves [https://research.tokenmetrics.com/p/deep-dive-plasma-redefining-how-money-moves]