Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was MYX, rising 1,280%.
- BlackRock is exploring how to make ETFs available as tokens on the blockchain. The firm is working on tokenizing funds tied to real-world assets such as stocks, subject to regulatory considerations. Tokenization could enable trading beyond Wall Street’s set hours, improve access to U.S. products abroad, and create potential use as collateral in crypto networks, Bloomberg reports.
- Crypto exchange Kraken has opened trading of tokenized U.S. securities to its customers in the European Union, expanding access to this emerging asset class. The offering includes more than 60 tokenized equities—blockchain-based certificates designed to track the price of companies like Apple, Meta, and GameStop—for trading in the region, Bloomberg reports.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Form, down 27.31%.
- Zodia Custody has dissolved its Japanese joint venture with SBI Holdings Inc., two years after its launch, following a strategic reassessment. SBI Zodia Custody had been in discussions with Japan’s Financial Services Agency about applying for local registration but had not proceeded before deciding to terminate the business, according to Bloomberg.
- Coinbase has filed a complaint against Dynapass Inc. seeking a declaratory judgment that it does not infringe a user authentication patent and that the patent is invalid. Coinbase claims Dynapass baselessly accused it of infringing a U.S. patent by requiring two-factor authentication for its users, Bloomberg reports.
Opportunities
- The stablecoin boom has triggered a talent war, making it both difficult and costly for companies like Dfns to fill open roles. Salaries in the space have surged, with head of stablecoin strategy positions in the U.S. typically offering base salaries between $250,000 and $400,000, according to Bloomberg.
- Eightco Holdings Inc. soared over 3,000% after announcing plans to purchase digital tokens backed by OpenAI’s Sam Altman and appointing Wall Street analyst Dan Ives as chairman. The company agreed to sell approximately 171.2 million shares at $1.46 each in a private placement to fund Worldcoin acquisitions and may also adopt Ether as a secondary reserve currency, Bloomberg reports.
- Gemini Space Station increased the potential size of its IPO offering to $433.3 million. The company raised its price range to $24–$26 per share, up from $17–$19, while still offering 16.7 million shares. At the top of the new range, Gemini would have a market value of $3.1 billion based on the outstanding shares listed in its filing, Bloomberg reports.
Threats
- Shares of digital-asset treasury companies are falling, and market confidence is slipping. Among the 15 DATs tracked by Architect Partners, the average decline last week was 15%. Many of these firms launched this year, with over 100 companies buying cryptocurrencies for their treasuries. Some are now struggling due to limited differentiation and high risk, according to Bloomberg.
- Digital assets and related equities extended losses on Thursday, with some of the steepest declines hitting tokens and companies linked to ventures associated with President Trump’s family. The drop in treasury company shares is also dragging down the prices of the underlying tokens, Bloomberg reports.
- Coinbase has accused the SEC of damaging public trust by deleting texts from Chair Gary Gensler. In a court filing on Tuesday, Coinbase alleged that the SEC failed to comply with prior orders to disclose communications related to Ethereum and other digital assets, according to Coinpedia.
