Crypto Market Weekly Wrap September 7 – Institutional Adoption, Tokenization and Global Regulation

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Crypto Market Weekly Wrap September 7 – Institutional Adoption, Tokenization and Global Regulation

The crypto market started September with major moves across Bitcoin, stablecoins, tokenization, and regulation. Companies made fresh Bitcoin purchases while financial institutions expanded their digital asset plans. At the same time, regulators in several countries worked on new rules for the growing crypto industry. Tokenized assets and stablecoins also gained more attention from traditional financial markets. Here are the major developments that shaped the week.

Strategy Resumes Bitcoin Buying After Ten Weeks

Strategy resumed its Bitcoin purchases after a ten-week pause. The company bought 4,603 BTC for about $369.7 million at an average price of $80,318. The purchase lifted Strategy’s total Bitcoin holdings to 845,050 BTC. Strategy disclosed the purchase on August 31 through a regulatory filing.

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The latest purchase followed a period of limited Bitcoin buying as the company adjusted its treasury activities. Strategy had also created a $1.59 billion cash reserve during the previous week. The company can use the reserve to buy Bitcoin, pay dividends, or repurchase shares.

Metaplanet Moves 2,400 Bitcoin to Coinbase Prime

Metaplanet transferred 2,400 BTC worth nearly $186 million to Coinbase Prime. The Japanese Bitcoin treasury company made the transfer on August 31 as part of its holdings management. The transfer raised questions about whether Metaplanet planned to sell some of its Bitcoin. Metaplanet previously denied similar claims involving transfers to exchanges. The company said earlier transfers involved custody management rather than Bitcoin sales. Metaplanet has not confirmed whether the latest transfer represents a planned sale.

CME Expands Its Crypto Market Benchmarks

CME Group launched two multi-asset crypto indices with CF Benchmarks on August 31. The new products track Bitcoin, Ether, and other major crypto assets. CME CF Crypto Market Index tracks Bitcoin and Ether through one benchmark. CME CF Emerging Crypto Index excludes Bitcoin and Ether from its basket. Both indices use real-time calculations and offer regional versions for London, New York, and Asia-Pacific markets. CME designed the benchmarks to support institutional trading and crypto risk management.

London Stock Exchange Plans Tokenized UK Stocks

The London Stock Exchange partnered with Payward on September 1 to tokenize 100 major UK-listed stocks through xStocks. Payward is the parent company of crypto exchange Kraken. The partnership will bring the tokenized stocks to eligible investors in more than 110 countries. Each xStock will have backing from one share of the underlying company. The London Stock Exchange also plans to list xStocks on its platform by next year. The listing will require regulatory approval before it can launch.

Binance Launches Options on US Stocks and ETFs

Binance launched options trading for more than 1,000 US stocks and ETFs on September 1. Eligible users can now buy call and put options linked to these assets through Binance. The launch gives users access to options linked to a wide range of US-listed companies and funds. Binance allows users to buy these options but does not allow them to write or sell contracts. The options use physical settlement when contracts expire. Nest Trading Limited acts as the introducing broker while Alpaca Securities provides clearing services. Meanwhile, access depends on each user’s location and eligibility under Binance’s rules.

Singapore Proposes New Stablecoin Rules

Singapore’s Monetary Authority proposed new rules on September 1 that would bring the country’s existing stablecoin requirements under the Payment Services Act. Issuers would need full reserve backing and must allow users to redeem stablecoins at face value within five business days.

The proposal would also introduce rules for certain foreign stablecoin issuers. The companies would have to show how they will manage risks by offering the stablecoin under different jurisdictions before the regulator allows them to operate in the country. Meanwhile, regulated stablecoins would not be allowed to pay interest to holders. MAS opened the proposal for public feedback until October 16.

Tether Faces Lawsuit Over $42.4M USDT Freeze

Two Thai businessmen sued Tether on September 2 over $42.4 million in frozen USDT. The lawsuit concerns 10 Ethereum addresses that held 42,417,785.62 USDT. Tether blacklisted the addresses after receiving an informal request from a Homeland Security Investigations agent.

The funds became part of an investigation into a $61 million pig-butchering scheme in North Carolina. Investigators linked the case to romance and investment fraud through fake crypto trading platforms. A federal court issued a seizure warrant on February 19, nearly four months after Tether froze the USDT. The plaintiffs have denied involvement in the scam and are challenging Tether’s decision to freeze their funds before the warrant.

Thailand Tightens Rules for Self-Custody Transfers

Thailand’s Securities and Exchange Commission issued new Travel Rule regulations for digital asset operators on September 2. The rules require operators to collect customer and counterparty information during crypto transfers. They must also verify ownership or control of self-custodial wallets when customers send or receive digital assets. The rules require operators to retain transaction information for at least five years, and will take effect on February 27, 2027.

Wyoming Adds Chainlink Reserve Checks to State Stablecoin

The Wyoming Stable Token Commission adopted Chainlink Proof of Reserve for its Frontier Stable Token. The system will publish verified reserve and token supply data onchain in near real time. The Network Firm will examine FRNT reserves and supply under AICPA standards before Chainlink makes the verified data available.

Wyoming already publishes daily reserve attestations for FRNT. The new system, adopted on September 2, will provide more frequent visibility into changes between those reports. The commission is also adopting Secure Mint, which will require verified reserves to equal or exceed FRNT’s total supply before new tokens can be minted.

Revolut Moves Closer to US Banking Launch

Revolut received conditional approval for a US national bank charter on September 3. The Office of the Comptroller of the Currency granted the approval. Revolut still needs approvals from the FDIC and Federal Reserve before launching the proposed bank.

The charter would allow Revolut to provide banking services directly to US customers. Those services could include deposits, lending, and credit products. Revolut also plans to connect its banking services with its existing digital asset offerings.

Standard Chartered Expands Crypto Trading in UAE

Standard Chartered expanded Bitcoin and Ether spot trading for institutional clients in the UAE. The bank announced the expansion on September 3 through its Dubai International Financial Centre operations. The service also connects with Standard Chartered’s existing digital asset custody business. The expansion allows institutional clients to access crypto trading and custody through the bank. Standard Chartered will provide the trading service alongside its existing digital asset infrastructure. The UAE rollout adds direct spot trading to the bank’s regional crypto offering.

CFTC Seeks Dismissal of CME Kalshi Lawsuit

The CFTC asked a federal court to dismiss CME Group’s lawsuit against Kalshi on September 3. CME argues that Kalshi’s Bitcoin perpetual contracts should face rules governing swaps. Meanwhile, the CFTC has argued that CME has not shown sufficient competitive harm to support its case. The regulator also argues that CME can list similar perpetual futures under the same framework used by Kalshi. CME filed its lawsuit after the CFTC approved Kalshi’s Bitcoin perpetual contract on May 29. The exchange must respond to the dismissal request by October 2.

OrionX Shuts Down After $7M Custody Shortfall

OrionX announced its permanent closure on September 3 after an audit found more than $7 million in customer assets outside its custody. The Chilean exchange suspended withdrawals while it works to return customer funds. The missing assets included Bitcoin, Ether, XRP, and Polygon.

OrionX also filed a criminal complaint against former executives and co-founders Roberto Zibert and Joaquín Díaz. The executives have denied wrongdoing and said the cause of the shortfall remains unclear.

Kalshi Expands Its US Crypto Perpetuals

Kalshi expanded its crypto perpetual futures lineup on September 4 by adding contracts tied to BNB, ADA, WLD, AAVE, and Venice Token. Kalshi launched the products through its regulated US platform after earlier expanding beyond Bitcoin perpetuals. The contracts allow traders to maintain positions without an expiration date while settling in US dollars.

South Korea Advances Tokenized Securities Roadmap

South Korea’s Financial Services Commission unveiled a three-phase roadmap for tokenized securities on September 4. The plan will expand tokenization beyond fractional investments to stocks, bonds, and funds. The first phase will begin in February, when the updated securities laws take effect.

The first phase will cover private money market funds, institutional bonds, unlisted stocks through trusts, and public fractional investment securities. The second phase will expand tokenization to all publicly offered securities after the initial system proves stable. The final phase will connect tokenized securities with stablecoin-based payments for onchain settlement.

Trezor Reports Wider Impact From Data Breach

Trezor disclosed on September 4 that another 67,000 US customers were affected by a data breach involving its logistics provider. The exposed information included names, email addresses, phone numbers, physical addresses, and order details. The incident involved customer information held by ShipMonk. The breach did not compromise Trezor hardware wallets themselves. However, the company warned affected customers about potential phishing attempts. Trezor expanded its disclosure after identifying additional customers connected to the earlier ShipMonk incident.

El Salvador Denies Moving Bitcoin Reserves

El Salvador rejected claims that it moved its Bitcoin reserves to a private operator on September 5. President Nayib Bukele said the country’s Bitcoin holdings remained under government control. The claims followed reports about assets connected to the country’s Chivo operation. The International Monetary Fund clarified that the disputed ownership transfer involved Chivo rather than El Salvador’s Bitcoin reserves. The clarification separated the Chivo transaction from the country’s Bitcoin holdings.

Blockstream’s Liquid Network Loses 4,000 Bitcoin

Blockstream’s Liquid Network paused operations on September 6 after nearly 4,000 BTC worth about $320 million left its federation wallet. The withdrawal reduced the wallet’s Bitcoin holdings from roughly 4,200 BTC to just over 200 BTC. Liquid said the funds moved through SideSwap using a valid Peg-out Authorization Key.

The network said the authorization key and other cryptographic keys were not compromised. Blockstream later traced the withdrawn L-BTC to a bug in Elements software, which powers Liquid Network. The actors behind the withdrawal claimed they were white-hat hackers and asked Blockstream to fix the bug before returning the Bitcoin.

Crypto ETF Inflows Extend Positive Streak

US spot Bitcoin ETFs recorded $986.9 million in net inflows last week, according to SoSoValue data. The funds extended their positive flows to three straight weeks, with BlackRock’s IBIT leading at $691.5 million. However, the weekly trading volume fell to $14.5 billion from nearly $19 billion during the previous week.

Spot Ether ETFs also recorded their third straight week of positive flows with $218.4 million in net inflows. Weekly trading volume fell to $4.1 billion, down from $6.3 billion the previous week. August also brought $3.52 billion into Bitcoin ETFs and $1.85 billion into Ether ETFs, marking the strongest monthly inflows for both groups in several months.

Bitcoin Price Performance

Bitcoin has closed the week lower after reaching a weekly high of $80,462 and a low of $78,992. The pullback leaves BTC below the $82,945 resistance zone after failing to reclaim it this week. A sustained move above $82,945 could open the way toward $90,000 and strengthen the recovery. Meanwhile, $78,992 offers immediate support because the weekly low held above that level. A break below $78,992 could send Bitcoin toward the $70,000 area.

Source: TradingView

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