Executive brief
Bitcoin has faced significant headwind as the US 10-year Treasury yield surged to its highest level since 2007, reaching a peak of 5.15%. This macro pressure drove the asset briefly below the $84,000 mark as traders reprice the likelihood of further interest rate hikes. While the short term is dominated by rising real yields and a stronger dollar, institutional infrastructure continues to expand rapidly. For example, the UK largest banks completed the world first interbank transactions using tokenized deposits, moving bank-issued digital cash beyond single institutions for use in remortgages and marketplace payments.
The Trump administration is reportedly weighing a global stablecoin plan to promote dollar-backed tokens worldwide to cement the greenback as a global reserve status. This suggests a significant directional driver toward federal support for digital dollar infrastructure. There is a clear opportunity in the maturation of real-world asset platforms, as seen with Ondo and BlackRock launching onchain portfolio tokens based on traditional investment strategies. However, the risk of higher-for-longer interest rates remains the primary driver of volatility, with market expectations for an October interest rate hike rising to a 64% probability. As Bitcoin tests support at the $84,000 level, the resilience of onchain economic activity, which held near $9.4 trillion despite market drawdowns, indicates a maturing market that is increasingly decoupling from simple price speculation.
1) Top 20 news headlines
- Bitcoin slides to $83,300 as bond yields hit highest level since 2007; the 10-year Treasury yield reached its highest level since 2007, forcing Bitcoin below the $84,000 support level;.
- UK largest banks complete world first interbank transactions using tokenized deposits; Barclays, NatWest, and HSBC used digital cash for remortgages in a test of bank-issued tokenized deposits;.
- Trump administration weighs a global stablecoin plan to cement dollar dominance; Washington is mulling a plan to actively promote USD-backed stablecoins worldwide as a reserve strategy;.
- ARK Invest brings $1.3 billion venture fund onchain through Securitize; Cathie Wood firm is tokenizing exposure to private tech companies like OpenAI on the Ethereum network;.
- AI coding cuts quantum-safe Bitcoin transaction estimate to $66; research by StarkWare used AI tools to reduce the estimated cost of quantum-resistant computations by roughly 79%;.
- Neutron DAO proposal leads to $9.3 million crypto loss; a governance exploit reassigned administrative rights over smart contracts, allowing attackers to withdraw millions in assets;.
- New York moves to block Polymarket alleging illegal gambling; state lawmakers filed a lawsuit against the prediction market following similar actions against competitor Kalshi;.
- Zcash rally reaches $1,600 as Europe unlocks new ETP access; 21Shares launched a physically backed Zcash ETP on Euronext Paris and Amsterdam as the asset hit a high of $1,651;.
- Crypto casino Duelbits goes offline after $7 million hot wallet hack; attackers drained hot wallets across four blockchains with $6 million currently sitting in a single Ethereum address;.
- IBM opens Swift ledger link for 24/7 tokenized deposits; the new beta link allows banks to instruct tokenized deposit transfers using existing Swift payment messages;.
- RockawayX bets $150 million on yield as next big crypto use case; the digital-asset firm is backing projects that bring real-world yields into the decentralized finance ecosystem;.
- NYSE and Blockchain.com partner to bring tokenized US stocks to crypto users; users may gain access to tokenized blue-chip stocks and ETFs through a planned digital trading platform;.
- Solana Foundation hires veterans to ramp up tokenized finance push; former executives from Binance and Polygon joined the foundation to court institutions moving payments onchain;.
- Coinbase pushes gold and silver toward 24/7 crypto-style markets; the exchange is expanding its derivatives infrastructure to offer always-on trading for precious metals futures;.
- HIFI raises $37 million for tokenized capital markets infrastructure; the Series A funding will be used to expand stablecoin payments and tokenized market services;.
- SoFi moves $25 billion card program to stablecoin settlement; the firm is using its SoFiUSD stablecoin to create a blockchain-based settlement rail for its card products;.
- Cosmos Hub restarts to seize $2.2 million in stolen ATOM; validators resumed block production to move 1.23 million tokens linked to a governance exploit into a recovery address;.
- Brooklyn man sentenced to 12 years for $16 million Coinbase scam; the fraudster used a phishing scheme to convince roughly 100 people to transfer funds to his control;.
- BitMEX opens fund recovery for customers in 6 barred jurisdictions; users in the US, Canada, and others can now withdraw funds after the platform ended operations this week;.
- Hut 8 wins bidding for Texas data centers with $140 million offer; the mining firm secured the acquisition of facilities formerly owned by Poolin to expand its domestic footprint;.
2) BTC and ETH ETF flows
| Metric | BTC | ETH |
|---|---|---|
| Net inflow | $347.0m | $104.6m |
| Value traded | $3.1b | $1.2b |
| Net assets | $108.7b | $17.5b |
| Cumulative net inflow | $57.2b | $13.8b |
3) X trending news
- US 10Y Note Yield hits 5.15%; the bond market is trading at its highest level since June 2007 with a 70 basis point rise this month.
- October rate hike expectations hit 64%; surging yields have led markets to price in a high probability of a 25 basis point hike in October.
- China trade surplus reaches $806 billion YTD; a historic boom in high-tech and AI-related exports is powering record trade surpluses for China.
- Trump prepares 90-day ban on diesel exports; the administration is considering a temporary halt to shipments to address diesel prices that rose 100% in nine months.
- US and Iran explore phased path out of war; reports suggest a potential deal to reopen the Strait of Hormuz in exchange for lifting the economic blockade.
- BlackRock and Ondo partner for tokenized portfolios; the partnership aims to launch onchain investment products using BlackRock developed strategies.
- Federal Reserve proposes GENIUS Act framework; a new regulatory structure is being introduced for stablecoin issuers under the proposed legislation.
