Last week, the crypto market saw major developments in the sectors of regulation, innovation, and institutional adoption. From the launch of Tether’s USAT stablecoin to the ETF tokenization plans by BlackRock, there was a lot of momentum in the industry.
Some of the key headlines also comprised IPO activity and global regulatory changes, which indicate deeper integration of crypto into mainstream finance. In the section below, we will discuss this crypto weekly market wrap in deeper detail ensure to read up to the end.
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Tether to Launch USAT Stablecoin Under U.S. Regulatory Oversight
Tether announced plans for a new U.S.-regulated stablecoin called USAT, which is specifically targeted at American businesses and institutions. The stablecoin will be backed 1:1 with U.S. dollars and short-term Treasuries, aligning with the GENIUS Act. The token will be issued by Anchorage Digital, a federally regulated crypto bank. Moreover, Cantor Fitzgerald will act as reserve custodian and primary dealer.
Tether Unveils USA₮, its Planned U.S.-Regulated Dollar-Backed Stablecoin, and Will Appoint Bo Hines as CEO of Tether USA₮
Follow @USAT_io 🇺🇸https://t.co/w0JxBvttwv— Tether (@Tether_to) September 12, 2025
Bo Hines, former Executive Director of the White House Crypto Council, will be the CEO of Tether’s U.S. division. Tether said it hired Hines to help it expand in the U.S. while maintaining strong compliance. USAT will be based on the Hadron tokenization platform, which is a tool by Tether to enable real-world asset issuance.
Paxos Enhances USDH Proposal with PayPal Integration
Paxos announced a major development in its USDH stablecoin proposal, where it integrates it with the PayPal ecosystem. The revised plan allows for free on- and off-ramps through PayPal, Venmo, and other PayPal-owned services. The stablecoin will also be compatible with Hyperliquid’s DeFi infrastructure, taking the world by storm.
In addition, the model shows the earnings of Paxos related to the growth of Hyperliquid, with no fees above 5%. Those fees will be paid with Hyperliquid’s HYPE governance tokens. The Paxos proposal also added new incentive programs to reward participants with the goal of gaining long-term alignment with the DeFi community.
BitMine Acquires $201M in Ethereum, Eyes 5% Supply Goal
BitMine Immersion Technologies added ETH 46,255 201 million to the corporate treasury. The purchase brings the total Ethereum balance at BitMine to more than 2.12 million ETH, representing a total of about $9.3 billion. The company is aiming to hold 5% of Ethereum’s supply. In addition, a company representative said that all acquisitions were spot purchases without leverage. In addition to its ETH holdings, BitMine also invested $20 million into a $270 million private placement for Eightco Holdings.
SEC to Host Roundtable on Financial Privacy in October
The SEC is scheduled to hold a public roundtable discussion on October 17th on surveillance and privacy in financial systems. Commissioner Hester Peirce stated that the issues to be discussed at the session will be crypto privacy technologies and policy strategies. The event, part of the SEC’s “Crypto Clarity” initiative, will feature tech experts and regulators.
The Crypto Task Force announced it will host a public roundtable on financial surveillance and privacy on Friday, October 17 from 1 p.m. to 4 p.m. at the SEC headquarters. For more: https://t.co/jKTCb0abLd.
— U.S. Securities and Exchange Commission (@SECGov) September 9, 2025
The meeting is held at a time of concern in this country about the overreach of surveillance in financial transactions. Peirce stressed the need to safeguard individual privacy as a component of crypto regulation. The session is based on previous roundtables and the President’s Executive Order on digital assets.
India Avoids Crypto Regulations Over Legitimacy Fears
India continues to resist implementing full crypto regulations due to concerns over financial legitimacy. A reviewed government document revealed that the Reserve Bank of India remains concerned about systemic risks. Instead, authorities rely on high taxation and strict compliance rules to limit activity.
Since 2022, crypto gains have faced a 30% tax, and a 1% TDS has been imposed on transactions. These measures sharply reduced trading volumes. However, global platforms like Bybit resumed services after paying penalties and registering with the Financial Intelligence Unit. The Supreme Court has asked the government to deliver clarity, while tax bodies review cross-border and derivative trades.
BlackRock Eyes Blockchain Tokenization for ETFs
BlackRock is considering launching tokenized ETFs on blockchain networks. Sources say the firm is looking into ways that real-world assets such as stocks can be traded as tokens. If passed, this move could allow for 24/7 trading and would increase accessibility for worldwide investors. The move follows the success of BlackRock’s iShares Bitcoin Trust and its tokenized fund called BUIDL, which has already attracted billions in inflows. BlackRock also recently conducted blockchain-based settlements on the Kinexys platform of JPMorgan.
WLFI Votes on Treasury-Funded Buyback and Burn Plan
The WLFI community is voting on a proposal to use 100% of protocol-owned liquidity fees for buybacks and burns. The plan covers fees from the position of WLFI on Ethereum, BS,C and Solana only. Third-party pools are not affected.
Proposal is LIVE: route 100% of WLFI Treasury liquidity fees to market-buy $WLFI and permanently burn it (multi-chain).
• Excludes partner LP/third-party fees
• Executed manually with on-chain proof
• Objective: reduce circulating supply & reward long-term holders 🦅Vote…
— WLFI (@worldlibertyfi) September 11, 2025
The idea is to use all the proceeds from the sale of the POL fees for buying the WLFI from the market, and then permanently burn the tokens. Supporters say this will link the use of protocols with greater scarcity and value. If this is approved, this could be the foundation of WLFI’s long-term deflationary strategy. All burns will be transparently recorded on-chain.
SwissBorg Assures No Losses After $41M SOL Exploit
SwissBorg confirmed that users will not incur any losses following $41 million exploit from Solana. CEO Cyrus explained that the exploit took place on an external wallet that was associated with the SOL Earn strategy. He made it clear that the SwissBorg platform itself was not compromised.
Security teams such as Chainalysis and Fireblocks assisted in the investigation of the breach. In response, Kiln, a validator partner, started moving its ETH validators out of the ETH ecosystem for the safety of client funds. The process, which takes up to 51 days, will preserve earnings till the last withdrawal.
IPO Surge Brings $4B in Capital with Gemini in Lead
Six companies raised more than $4 billion this week in one of the busiest IPO weeks since 2021. Gemini, spearheaded by the Winklevoss twins, was leading the wave. The crypto exchange also boomed when it went live due to the excitement of retail investors. Figure Technology also debuted with much interest, but backed down on day two.
Nemo Protocol Offers Compensation After $2.6M Exploit
Nemo Protocol set aside a compensation plan after a $2.6 million loss from an unaudited smart contract. Affected users will receive NEOM debt tokens equal to their losses in USD terms. The exploit happened due to the developer pushing unvetted code.
Official Update:
Following the September 8 security incident, Nemo Protocol has finalized a comprehensive compensation plan. We remain committed to transparency and accountability.
We are deeply grateful to our community and partners for their trust and support, and we will… pic.twitter.com/OWDIG5PSyA
— Nemo (@nemoprotocol) September 15, 2025
Users will transfer remaining balances to new and secure contracts. They can either trade NEOM for USDC or wait for the recovery of the funds. Reclaimed funds will all go into a redemption pool for NEOM holders. Nemo also plans to list NEOM on one of the Sui-based exchanges to support liquidity.
CoinShares Moves to Nasdaq via $1.2B SPAC Deal
CoinShares signed a merger agreement with Vine Hill Capital for $1.2 billion to list on Nasdaq. The deal opens up US investor access to Europe’s largest digital asset manager. CoinShares has $10 billion in assets and is the fourth-largest crypto ETP in the world.
A new holding company, Odysseus Holdings Limited, will absorb both companies. An institutional anchor agreed to put in $50 million to support the transition. Regulators and shareholders will have to approve the deal before closing later this year.
Galaxy Digital Acquires $536M in Solana From Major Exchanges
Galaxy Digital acquired 2.31 million SOL worth $536 million from Binance, Bybit, and Coinbase. The move is in support of its ongoing strategy, which is to build Solana reserves. Analysts on-chain were able to confirm the transactions through Arkham Intelligence. The acquisition comes after Galaxy’s previous investments in Solana-focused treasury firms. There are several public companies holding SOL supported by Galaxy. CEO Mike Novogratz declared this as the start of a bullish cycle for Solana assets.
Coinbase Presses Court Over Missing SEC Communications
Coinbase requested a federal court to impose sanctions on the SEC for erasing texts from ex-Chair Gary Gensler. The Office of Inspector General confirmed that the deletion took place over almost a year. Coinbase asserts that such messages should constitute official records.
Coinbase accused the SEC of not responding to FOIA requests by asking for more hearings. The exchange wants the court to order complete disclosure of documents and consider sanctions. The SEC responded by saying it is reviewing the incident and putting safeguards in place.
THORChain Co-Founder Loses $1.3M in Zoom Call Scam
JP Thor, co-founder of THORChain, lost $1.3 million in a deepfake phishing attack and malware. Hackers used a hacked account of his on the messaging app, Telegram, to entice him to participate in a Zoom call. A deepfake video of a friend was used to get his trust.
Old private keys stored in iCloud Keychain which were forgotten about and sniffed by some very enterprising actors.
Reminder: private keys stay radioactive forever. Don't use them.
Use multi-factor wallets like @vultisig (which in this case was perfectly safe).
All wallets… https://t.co/FYLnHWbUyI
— JP (@jpthor) September 12, 2025
Once they were connected, a malicious script was able to access his iCloud Keychain and empty an old MetaMask wallet. He later wiped his computer and turned off iCloud for sensitive documents. His Vultisig wallets remained unaffected. The incident brought to light the dangers of using keys stored online.
XRP Spot ETF Set for Wall Street Debut
Rex Shares and Osprey Funds’ first spot XRP ETFs in the US will launch on September 18 after the delay. The SEC completed its 75-day review without raising any objections. The ETF offers direct access to XRP through brokerage platforms. This listing proves a new milestone for XRP as it will have broader market access. Now investors can purchase XRP in a regulated environment. The launch is anticipated to receive new capital and enhance liquidity for the asset.
3AC Subpoenas SBF in $1.5B Liquidation Dispute
Three Arrows Capital subpoenaed Sam Bankman-Fried about claims that FTX forced a $1.5 billion liquidation in 2022. The firm claims that this action led to its collapse. Bankman-Fried is due to give evidence on October 14, 2025. FTX’s estate denies the size of the liquidation, saying only $82 million was involved. The court fight could have implications for future bankruptcy deals in the crypto realm, and creditors are closely monitoring the outcome.
Kraken Launches Tokenized Stocks in EU
Kraken launched tokenized U.S. stocks to the European market via its xStocks service. Investors can now trade over 60 tokenized equities such as Tesla, Apple, and Google. The assets are backed on a 1:1 basis by real shares in custody.
Europe, your wait is over.
xStocks are now live in the Kraken app for eligible clients in Europe!
Break the broker barrier 👇https://t.co/viHhrZp8Jv pic.twitter.com/sGV7MeI4nJ
— Kraken (@krakenfx) September 10, 2025
The platform accommodates 24/7 trading and eliminates the barriers of traditional brokerage. It also makes it easier to get into the U.S. markets for European traders. This growth is part of Kraken’s efforts to integrate crypto and traditional finance.
Vietnam Starts Crypto Pilot with Dong-Based Trades
Vietnam launched a pilot for crypto trading for 5 years with strict rules. All transactions are required to be transacted in Vietnamese dong. Only local companies are able to issue tokens, which must have tangible assets behind them. Moreover, the government has high capital and experience requirements for platform operators. Foreign ownership is limited to 49% ensuring domestic control. Once licenses are issued, it takes a six-month transition period. After that, exchanges will be illegal if they are not licensed.
China Signals Possible Crypto Restrictions on State-Linked Firms
Chinese regulators may limit mainland companies and state-sponsored organisations from participating in the crypto business. This policy change affects those in the process of obtaining Hong Kong stablecoin licenses. New guidelines may also restrict overseas investments in crypto by big tech companies.
The move represents Beijing’s emphasis on the real economy as opposed to speculative finance. Institutions could have to divert capital away from digital assets. Market participants are waiting for an explanation of these restrictions.
Russia Considers Launching State Crypto Bank
Russian Civic Chamber member Yevgeny Masharov proposed a national crypto bank for legalizing gray market settlements. The bank would provide miners with a compliant method to sell crypto earnings. The idea is to better tax revenue and prevent financial crime. Belarus inspired the proposal after establishing its own crypto exchanges in a special tech park. Russia could follow that example in regulating its booming digital currency sector. Officials are still looking at its feasibility.
South Korea Reopens VC Funding for Crypto Firms
Starting September 16, South Korea will provide crypto companies with venture capital funding again. The change in policy lifts a ban that was put in place in 2018 to cool speculation. The new rule comes with a revision of the country’s Special Act on venture businesses.
South Korea to Lift the Ban on Crypto Company VC Investments on September 16
According to HashNews, citing Cryptonews, South Korea's Ministry of SMEs and Startups announced that it will officially lift the ban on September 16 on venture capital (VC) investments in companies…
— HashNews👩🏻🌾 (@HashNews01) September 11, 2025
Top exchanges under DAXA welcomed the move, calling it an industry turning point. Crypto-related startups are now freer to raise funds. Regulators feel that this may help fuel innovation in the digital asset space.
MetaPlanet to Raise ¥212.9B for Bitcoin Strategy
Japan-listed MetaPlanet will raise about 212.9 billion yen through overseas stock offerings. The company will use the 183.7 billion yen to buy more bitcoins. It also intends to spend 20.4 billion yen on strategies related to bitcoin revenues, including options trading. MetaPlanet currently holds 20,000 BTC, which amounts to more than 322 billion. This offering will have the total issued shares of 1.14 billion, making MetaPlanet one of Asia’s most aggressive accumulators of bitcoin.
Digital Asset Investment Products Market Overview
Digital asset products recorded $3.3 billion in inflows last week, which pushed total assets under management to $239 billion, according to CoinShares’ latest report. This increase came after weaker-than-expected U.S. economic data and gains in major digital assets at the end of the week. The U.S. topped the surge with $3.2 billion, followed by Germany with $160 million.
CoinShares reported $3.3B inflows into digital asset products last week, pushing AuM to $239B. Bitcoin saw $2.4B, Ethereum had $646M after eight days of outflows, and Solana posted a record $145M single-day inflow on Friday, totaling $198M for the week.https://t.co/mDGKw4FJwt
— Wu Blockchain (@WuBlockchain) September 15, 2025
Bitcoin drew the most inflows with $2.4 billion, and had its best week since July. Ethereum reversed its negative trend with $646 million inflows in four successive days. Solana saw a record daily inflow of $145 million, achieving a total of $198 million for the week. Short-Bitcoin products experienced small outflows, bringing their total holdings to $86 million. Meanwhile, minor outflows of $1.08 million and $660,000 were recorded by Aave and Avalanche, respectively.
Bitcoin Price Performance
Bitcoin witnessed a positive performance last week after surging back to the $116k mark after dropping below the $111k mark earlier during the week. This price movement led to a gain of almost 3% pushing the overall market cap above the $4 trillion mark again. Bitcoin has a market cap and trading volume of $2.30 trillion and $44 billion, respectively.
Looking at the technical indicators on the weekly chart, Bitcoin is recovering from the recent pullback. The RSI has climbed to 58 levels, indicating a neutral sentiment in the market. This suggests that BTC price could climb to challenge its key at $119k soon and challenge its ATH high.
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