Summary
gm, Governor Christopher Waller expressed that there is "nothing to fear" about cryptocurrencies and DeFi technologies. Banking adoption accelerated with State Street joining JPMorgan's tokenized debt platform and Singapore's DBS Bank launching tokenized structured notes on Ethereum. In the stablecoin space, MetaMask announced its mUSD stablecoin, while Tether and Circle arranged meetings with South Korean banking executives to discuss potential stablecoin partnerships and won-backed developments. Meanwhile, the crypto market showed mixed performance as Bitcoin traded around $113,000 ahead of Fed Chair Powell's Jackson Hole speech, with traders exhibiting cautious sentiment while altcoins like Ethereum, Solana, and Chainlink demonstrated notable resilience.

News Headlines
💰 Stablecoin Market Could Hit $1.2T by 2028, Says Coinbase

  • Coinbase analysts project the stablecoin market will grow to $1.2 trillion by 2028 from its current $270 billion, which could translate to approximately $5.3 billion in new weekly purchases of U.S. Treasury bills.
  • This growth could potentially decrease Treasury bill yields by 2-4 basis points over time, highlighting stablecoins' increasing influence on traditional financial markets and their dependence on policy-enabled adoption.

🌐 Solana's Proprietary AMMs Reshape Liquid Asset Markets

  • A new wave of proprietary automated market makers (prop AMMs) on Solana is addressing issues like MEV attacks by operating without public frontends and centralizing liquidity through unique market makers.
  • These prop AMMs have captured substantial market share, accounting for 13% to 24% of monthly DEX volumes since January 2025, with approximately 53% of SOL-stablecoin transactions last week going through these platforms.

💸 Binance USDT Yield Farming Launches on Plasma Bitcoin Stablecoin Network

  • Binance is moving its USDT yield product on-chain to the Plasma network, with a mainnet launch expected in September offering 2% APR on USDT holdings and participation in the upcoming XPL token launch.
  • The initial deposit cap of $250 million was reached quickly, with the partnership aiming to establish Plasma as a primary chain for stablecoins with access to Binance's potential user base of 280 million account holders.

🏦 State Street and J.P. Morgan Complete $100M Tokenized Debt Deal

  • State Street has become the first third-party custodian for tokenized assets on J.P. Morgan's Digital Debt Service blockchain platform, with an inaugural $100 million issuance of tokenized commercial paper by Singapore-based OCBC Bank.
  • This arrangement allows State Street to manage client holdings in digital wallets connected to J.P. Morgan's system, streamlining recordkeeping and settlement in a market projected to grow to $2-19 trillion by 2030-2033.

🔐 Crypto Giants Launch 'Beacon Network' to Track and Freeze Stolen Assets

  • A coalition of crypto and traditional finance firms has launched the Beacon Network to identify and freeze illicit funds on the blockchain, with TRM Labs as a key player facilitating collaboration to block off-ramps for criminal funds.
  • Founding members include major exchanges like Coinbase, Binance, and Kraken, with the network already showing success in freezing significant sums linked to scams by alerting participants when flagged funds attempt withdrawal.

Market Metrics

Fundraising & VC
1. DigiFT (Strategic, $11M) - DeFi exchange for institutional-grade on-chain RWAs
2. Irys (Series A, $10M) - Programmable datachain for AI and beyond
3. LO:TECH (Seed, $5M) - London-based digital asset trading and infrastructure company
4. Loop (Strategic, $2M) - Crypto and stablecoin payment processor

Regulatory
🚫 US House Adds CBDC Ban to Defense Policy Bill

  • The US House has incorporated a provision banning the Federal Reserve from issuing a central bank digital currency (CBDC) into a massive defense policy bill for fiscal year 2026.
  • This addition aligns with commitments made by House Republican leaders to advance other crypto-related bills, while allowing exceptions for private, open dollar-denominated currencies.

🔍 US Treasury Seeks Public Input on Crypto Monitoring Tools

  • The Treasury is soliciting innovative methods to identify illicit crypto activities, focusing on AI, blockchain monitoring, digital ID verification, and APIs, with responses due by October 17.
  • Industry experts suggest technologies like zero-knowledge proofs and reusable KYC credentials could allow compliance and privacy to coexist while protecting against illicit activities.

👨‍⚖️ DOJ Signals Major Shift in Crypto Prosecutions Approach

  • The Department of Justice indicated it would revise its approach to cryptocurrency enforcement, emphasizing that writing code without malicious intent is not a crime.
  • This change follows the case of Tornado Cash co-founder Roman Storm, signaling a more lenient approach that could provide improved legal protections for crypto developers.

💼 UK Banks Block 40% of Crypto Transactions, Users Switching Banks

  • A survey by IG Group found that 40% of UK crypto users reported blocked or delayed payments from banks, with 29% filing complaints and 35% switching banks as a result.
  • Officials like former Chancellor George Osborne criticize these practices, claiming the UK is falling behind in crypto adoption and recognition of stablecoins.

🌐 Gemini Secures MiCA License in Malta, Expanding European Reach

  • Gemini has obtained a Markets in Crypto Assets Regulation (MiCA) license from Malta, enabling expansion across over 30 European countries.
  • This regulatory approval follows Gemini's recent listing on the Nasdaq and acquisition of a MiFID II license for derivatives trading, strengthening its position in the European market.

Technical Analysis
Bitcoin - Bitcoin has broken through the floor of a rising trend channel in the short term. This indicates a slower rising rate at first, or the start of a more horizontal development. The currency has met the objective at 116746 after a break of the inverse head and shoulders formation. The price has now fallen, but the formation indicates further rise. The currency has marginally broken down through support at points 113500. An established break predicts a further decline. Volume tops and volume bottoms correspond badly with tops and bottoms in the price. This weakens the currency. The currency is overall assessed as technically slightly negative for the short term.

Ethereum - Ethereum has broken through the floor of a rising trend channel in the short term. This indicates a slower rising rate at first, or the start of a more horizontal development. The currency has support at points 3870 and resistance at points 4770. The currency is assessed as technically neutral for the short term.