In this issue:
- Multiple Companies Announce Stablecoin Initiatives in U.S. and Abroad
- Digital Asset Companies Announce Partnerships, Product Offerings
- Report Provides Data and Analysis on Crypto Payment Adoption
- Protocol Hacks Cause $22M in Losses; T3 Freezes $9M in Stolen Bybit Assets
Multiple Companies Announce Stablecoin Initiatives in U.S. and Abroad
Recent reports have noted multiple developments in the stablecoin sector.
In a recent press release, Custodial Bank and Vantage Bank announced "America's first bank-issued stablecoin on a permissionless blockchain." According to the press release, "[t]he banks collaborated on the mint, transfer and redemption" of Avit stablecoin tokens "for a bank customer on the Ethereum mainnet using the ERC-20 standard." The press release notes that the live stablecoin transaction took place in eight stages, including transfers by the bank customer of its Avit tokens into self-custody, transacting with Avit tokens business to business outside the banking system and transferring Avit tokens back to Custodia Bank for redemption into U.S. dollar demand deposits.
In a second recent press release, the Wyoming Stable Token Commission announced that "the Wyoming Stable Token (WYST) entered its testing phase across several blockchain networks, a key step toward launching the first fiat-backed and fully reserved stable token issued by a public entity in the United States." According to the press release, "testing is expected to occur throughout the second quarter of 2025, with a potential launch in July 2025."
A third recent press release announced the expected launch of a new stablecoin, USD1, that will be issued by a U.S. company and redeemable 1:1 for the U.S. dollar. According to the press release, "USD1 reserves will be custodied by BitGo, the world's largest independent qualified custodian and leader in digital asset security, custody, and liquidity."
In news related to the USDC stablecoin, a major cryptocurrency exchange recently announced an expansion of its stablecoin offerings, enhancing exclusive trading pairs for USDC and EURC. Additionally, the issuer of USDC, recently announced a series of partnerships aimed at expanding the use of USDC in the Japanese market.
And in the U.K., stablecoin company Haycen recently announced plans to work with a major U.S. financial institution to provide "global custody services" and "cash sweep services" to support Haycen's "wholesale stablecoin-based solutions." Finally, in Mexico, crypto exchange Bitso announced that it intends to launch a Mexican peso-pegged stablecoin on the Ethereum layer-2 network Arbitrum.
For more information, please refer to the following links:
- Custodia Bank and Vantage Bank Issue America's First Bank-Issued Stablecoin On A Permissionless Blockchain
- Wyoming Stable Token Enters Critical Testing Phase
- World Liberty Financial Plans to Launch USD1, the Institutional-Ready Stablecoin
- Bitstamp expands access to USDC and EURC for its 5 million users
- Circle Strengthens Commitment to Japan with New Investment and Expanded USDC Access
- Northern Trust Appointed as Global Custodian and Cash Manager by Haycen
- Bitso to launch Mexican peso-pegged stablecoin on Arbitrum
Digital Asset Companies Announce Partnerships, Product Offerings
In a recent press release, a major U.S. derivatives exchange operator and a major U.S. technology company announced they are "piloting solutions for seamless and secure wholesale payments and tokenization of assets" using the technology company's proprietary distributed ledger. According to the press release, the two organizations "will initiate direct testing with market participants with the intent to launch new services in 2026."
In a separate partnership announcement, a major global crypto exchange announced it has partnered with a U.S. media and technology company to support the release of the company's branded ETFs covering both digital and nondigital assets. According to a blog post, the exchange will build the infrastructure, provide ETF custody and supply cryptocurrency for the partnership.
tZERO Group, in its own press release, announced it is now able to broker over-the-counter digital asset securities transactions on a noncustodial basis. tZERO states the new services will help its clients "engage in a full-service digital asset business."
Finally, Zero Hash announced it has been granted approval to establish a trust company in North Carolina. With a chartered trust company, Zero Hash will be able to provide custody of tokenized assets on behalf of SEC-registered institutions and introduce new account types such as retirement accounts.
For more information, please refer to the following links:
- CME Group Will Introduce Tokenization Technology to Enhance Capital Market Efficiency Using Google Cloud's New Universal Ledger
- Crypto.com to Partner to Power Trump Media's ETF Offerings
- tZERO's Special Purpose Broker Dealer to Facilitate OTC Digital Asset Securities Transactions for Its Customers
- Zero Hash Secures Approval to Establish a Trust Company, Strengthening Its Custody Capabilities
Report Provides Data and Analysis on Crypto Payment Adoption
Bitget Wallet, a Web3 noncustodial, multichain cryptocurrency wallet, recently released its Onchain Report (the Report) analyzing factors affecting crypto payment adoption. Based on a survey conducted of a mix of more than 4,500 members of Generation X and Generation Z and millennials, the authors set forth their findings of generational and regional differences that influence crypto payment adoption patterns.
According to the Report, key drivers of crypto payment adoption include speed, accessibility, cost savings and financial autonomy. Also noted by the authors is that adoption patterns differ by geographic region. For example, Africa and Southeast Asia lead the way in crypto payment adoption, and users in emerging markets tend to focus on speed, accessibility and cost-effectiveness, while users in developed markets focus on the need for seamless global payments, according to the Report.
The Report also analyzed survey results with respect to factors that slow crypto payment adoption, including security concerns, price volatility, irreversible transactions and a lack of legal protection. A related story discussing the Report highlighted that 37 percent of users noted security concerns as a primary barrier to using crypto for payments, and yet 46 percent of users prefer crypto payments over fiat because of their speed and efficiency. Gen X users reportedly focused on security as a main concern, while Gen Z users focused on usability and cost-efficiency.
For more information, please refer to the following links:
- PayFi Unlocked: Crypto Payment Adoption March 2025
- Security concerns slow crypto payment adoption worldwide — Survey
Protocol Hacks Cause $22M in Losses; T3 Freezes $9M in Stolen Bybit Assets
By Lauren Bass
Last week, decentralized lending protocol Abracadabra.Money reportedly fell victim to an exploit of one of its smart contracts. According to reports, hackers took advantage of a vulnerability in a GMX token-targeting pool that allowed them to drain close to $13 million worth of ETH before they were detected. GMX, however, has denied that any of its contracts were compromised.
In similar news, the accidental leak of credentials at real-world asset restaking protocol Zoth has reportedly led to the loss of $8.4 million in crypto assets. According to reports, cybersecurity experts believe this type of attack – wherein bad actors obtain administrative permissions and bypass security mechanisms – will continue to be a key vulnerability in the DeFi ecosystem unless system upgrades are enacted.
And for a bit of "good news" – the T3 Financial Crime Unit – a collaboration between Tether, TRON and TRM Labs aimed at preventing global crypto crimes – located and froze close to $9 million in assets that had reportedly been stolen during the recent Bybit hack.
For more information, please refer to the following links:
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