Telcoin Issues First U.S. Bank Stablecoin on Polygon Blockchain

Telcoin launches a regulated dollar stablecoin on Polygon, signaling progress toward blockchain-native banking under U.S. laws and oversight.

A notable shift appeared in U.S. banking as Telcoin issued a dollar-backed stablecoin publicly. Importantly, the launch was the first regulated bank stablecoin launched on a public blockchain. Moreover, the development indicates an increased degree of trust in compliant financial infrastructure based on blockchain technology across the country.

Telcoin Launches eUSD Under U.S. Banking Laws

Telcoin Digital Asset Bank began eUSD under the framework of the Nebraska Financial Innovation Act. Additionally, the issuance was done under federal guidelines for GENIUS Act and digital asset institutions. Therefore, eUSD was the first stablecoin issued by a U.S. chartered bank.

The stablecoin was launched on Polygon while also supporting the Ethereum blockchain. Meanwhile, Telcoin minted $10 million USD when it comes to the first phase of issuance eUSD. As a consequence of this, the Digital Cash stablecoin came into circulation for institutional use.

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Telcoin is a Digital Asset Depository Institution, which is licensed in Nebraska. Consequently, the charter provides for the stablecoin issuance, deposits, and payments under unified supervision. This structure distinguishes Telcoin from nonbank issuers of stablecoins that do not have banking charters.

The bank confirmed that eUSD is backed with 100% funds by U.S. dollar deposits and Treasuries. Furthermore, reserves are still held under controlled custodial arrangements for transparency reasons. Therefore, the model is designed to mitigate counterparty risks that are prevalent in unregulated stablecoin markets.

Telcoin’s CEO Paul Neuner, described the launch as a milestone in banking. He said issuance on Ethereum and Polygon is phase one in banking operations. Accordingly, the move is supportive of future blockchain native account under the Nebraska charter service.

The benefits of scalability for regulated financial products were noted by industry observers for Polygon. Meanwhile, Polygon openly admitted its support for the launch through official channels. This way, the deployment demonstrates increasing collaboration between regulated banks and blockchain networks.

Stablecoin Market Impact and 2026 Banking Plans

Telcoin expects to start onboarding customers in operations early in 2026. Notably, personal and business banking accounts will both open under the digital banking platform. Personal accounts will be available from the V5 release of Telcoin Wallets.

Business accounts will be used for payment settlement and digital treasury management tools. Therefore, Telcoin has the goal of making stablecoins part of the general services of banks. This approach is indicative of general industry movement towards blockchain native financial infrastructure.

As the first U.S. Digital Asset Depository Institution, Telcoin has the advantages of a first mover. Consequently, it could win some market share in the growing global stablecoin sector. Industry data indicates that supply was stablecoins in the billions of dollars in 2025, over $150 billion worldwide.

Market reaction was short-term volatility for the TEL token following the announcement. At first there were price increases until profit taking developed between traders. Subsequently, TEL got fluctuated near $0.0041 on December 30, 2025.

Analysts consider regulated issuance as another siren of institutional adoption. Therefore, Telcoin’s chartered approach can have a bearing in future banking participation. Several Banks reportedly try exploring permissioned blockchain deployments using existing toolkits.

However, Telcoin’s issuance has remained unique in current U.S. regulations. Importantly, the unified charter allows simultaneously for deposits, payments and stablecoins. This eliminates operational fragmentation found throughout other digital asset service providers.

Overall, the launch of eUSD is an indication of a structural change in American banking. Consequently, blockchain native accounts could be legitimized by a regulated framework. The development marks how compliance could spur mainstream stablecoin adoption.

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