Banks can't scale stablecoin payments without sanctions screening, fund freezes and AML controls, argues Tempo's Jevgenijs Kazanins as onchain volume hits $390B

SE-MEV turns freezes into a sequencing market: an arXiv paper this year found 7.3% of sanctioned USDT addresses and 18.7% of sanctioned USDC addresses were drained before issuer freezes landed. Tempo’s IVMS101/SWIFT memos and token-level blacklists solve the bank workflow problem, but enforcement still has to beat private orderflow when funds start moving. If every OFAC hit becomes a priority-gas auction, compliant stablecoin rails inherit MEV as a hidden compliance cost.

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