Blockchain & Digital Assets Weekly Briefing - Week 17

Week ending 25th April 2025

This week, Russia announces a state-backed crypto exchange to bypass sanctions, while Tether, SoftBank, and Cantor Fitzgerald launch Twenty One Capital. The Fed relaxes its stance on crypto regulation by withdrawing guidance for banks, PayPal offers a yield on its stablecoin PYUSD, and Circle unveils a blockchain payments network for financial institutions to enable real-time cross-border transactions.

1. Russian ministry of finance and central bank to establish a cryptocurrency exchange tailored for "super-qualified investors".

2. Tether, SoftBank, Cantor and Jack Mallers form ‘Twenty One,’ ranking 3rd among global Bitcoin treasuries.

3. Fed Rescinds Guidance on Crypto Oversight, Opening Path for Banks in Stablecoin Market.

4. PayPal boosts PYUSD appeal with 3.7% yield, as Coinbase waives fees to support stablecoin adoption.

5. Circle payments network: enabling real-time, low-cost cross-border transactions for financial institutions and fintechs.

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1. Russian ministry of finance and the central bank to establish a cryptocurrency exchange tailored for "super-qualified investors" 

   
   

The Russian Ministry of Finance and the Central Bank are allegedly collaborating to establish a cryptocurrency exchange tailored for "super-qualified investors." This initiative aims to legalize crypto assets and bring cryptocurrency operations out of the shadows, particularly those conducted under the experimental legal regime. 

On 12th of March 2025, the Bank of Russia has suggested creating an experimental legal regime (ELR) for three years, allowing a limited group of Russian investors to trade cryptocurrency. To participate, investors would need to meet high requirements, including having assets worth at least ₽100 million or earning a minimum of ₽50 million annually, qualifying them as "super-qualified investors."

Historically, Russia has maintained a cautious stance towards cryptocurrencies, particularly concerning their use in domestic transactions. However, the imposition of Western sanctions has prompted a strategic pivot. Russian firms are now participating in experimental international crypto payments, recognizing digital assets as viable alternatives for cross-border transactions. This shift underscores the country's efforts to circumvent traditional financial restrictions and maintain its economic activities on the global stage.

In response to recent sanctions that led to the blocking of Russia-linked digital wallets holding over 2.5 billion roubles in USDT, a senior official at the Finance Ministry, Osman Kabaloev, has advocated for the development of domestically produced stablecoins. These stablecoins would potentially be pegged to non-dollar currencies, providing Russia with alternative tools to facilitate international payments and reduce reliance on foreign stablecoins susceptible to external sanctions.

Russia's initiatives to establish domestic crypto exchanges and develop its own stablecoins represent a strategic move to enhance financial autonomy and resilience against international sanctions. By creating alternative channels for international trade and payments, Russia aims to safeguard its economic interests and reduce dependence on Western-dominated financial systems. These developments could also position Russia as a significant player in the evolving global cryptocurrency landscape, potentially influencing other nations facing similar financial constraints to explore comparable strategies.

2. Tether, SoftBank, Cantor and Jack Mallers form ‘Twenty One,’ ranking 3rd among global Bitcoin treasuries

​Cantor Fitzgerald, Tether Holdings Ltd., SoftBank Group, and Bitfinex have officially launched Twenty One Capital, a Bitcoin-native company formed through a business combination (assets + leadership + strategy being bundled into the SPAC) with Cantor Equity Partners Inc., a SPAC. The venture is designed to provide investors with a dedicated vehicle for Bitcoin exposure, pro-Bitcoin advocacy, and Bitcoin-focused content and media, with plans to explore future expansion into Bitcoin-native financial products.​

Twenty One Capital is expected to launch with over 42,000 Bitcoin, making it the third-largest Bitcoin treasury globally. The initial contributions include $1.5 billion in Bitcoin from Tether, $900 million from SoftBank, and $600 million from Bitfinex. 

To further bolster its Bitcoin holdings, the company plans to raise an additional $585 million through a combination of $385 million in convertible (into stock) senior (priority repayment) secured (with a collateral) notes and $200 million in a common equity private investment in public equity (PIPE) financing (basically at a discounted price and outside of public markets). The net proceeds from these offerings will be used to purchase additional Bitcoin and for general corporate purposes.​

Leading the venture is Jack Mallers, co-founder and CEO of Twenty One Capital. Mallers is also the founder and CEO of Strike, a digital payment provider built on Bitcoin’s Lightning Network. He has been instrumental in furthering Bitcoin’s adoption by institutions, corporations, and governments worldwide. Under his leadership, Twenty One aims to become the most successful company in Bitcoin, emphasizing a Bitcoin-denominated capital structure and mindset.​ Brandon Lutnick, Chairman & CEO of Cantor Equity Partners, Inc. and Chairman of Cantor Fitzgerald, L.P. commented:

“With a visionary leader at the helm and backing from two renowned industry leaders, Twenty One is designed to help investors capture value from Bitcoin’s growing global demand and increasing institutional adoption.”

To reflect its Bitcoin-focused approach, Twenty One will introduce two key performance metrics:​

• Bitcoin Per Share (BPS): The amount of Bitcoin each fully-diluted share represents, reflecting shareholder ownership in Bitcoin rather than fiat earnings per share.​

• Bitcoin Return Rate (BRR): The rate at which BPS grows over time, denominating the company’s performance in Bitcoin.​

  
  

The company plans to list on the Nasdaq under the ticker symbol XXI upon the completion of the business combination. This initiative marks a significant step in integrating Bitcoin into public markets, offering investors a unique opportunity to gain exposure to Bitcoin through a publicly traded company.​

The formation of Twenty One Capital underscores the growing institutional interest in Bitcoin and reflects a broader strategic pivot by Cantor Fitzgerald towards digital assets. It also aligns with the current U.S. administration's pro-crypto stance, as President Donald Trump has expressed intentions to champion crypto adoption in the U.S., viewing it as a tool for banking improvement and reinforcing the U.S. dollar's global position.​

With strong backing from major players in the crypto and investment sectors, Twenty One Capital is poised to become a significant force in the Bitcoin ecosystem, providing a new avenue for investors to participate in the growth and adoption of Bitcoin.

3. Fed Rescinds Guidance on Crypto Oversight, Opening Path for Banks in Stablecoin Market

Yesterday, the Federal Reserve, in coordination with the FDIC and OCC, officially rescinded multiple pieces of guidance that had previously directed U.S. banks to engage cautiously with crypto-assets. Most notably, the Board withdrew its 2023 supervisory letter (SR 23-8), which had established a formal “supervisory nonobjection” process for state member banks seeking to engage in dollar token activities—a move that significantly alters how banks can participate in the issuance and use of dollar-backed stablecoins.

This rollback removes a key procedural hurdle that had required banks to consult regulators before launching or participating in tokenized dollar initiatives. According to the Fed, these guidance documents are being withdrawn because they were “nonbinding” and “issued without following the notice-and-comment rulemaking process.”

While regulators insist that this does not change banks’ existing legal or supervisory obligations, critics argue that removing explicit oversight—especially concerning dollar tokens—opens the door to unchecked innovation in a sector still grappling with fraud, instability, and regulatory gaps.

The Fed acknowledged the ongoing risks in its statement:

“The agencies continue to believe that engagement by banking organizations in crypto-asset-related activities requires careful scrutiny and robust risk management.”

It also underscored that the withdrawal “does not affect the ongoing supervisory process,” leaving risk assessments and compliance standards in place, but now without the additional crypto-specific directives.

Proponents say this change clears the path for innovation and competition in financial technology, especially around blockchain-based payments. However, skeptics warn it may prioritize industry flexibility over public protection—particularly at a time when stablecoins and other digital dollar instruments are gaining real-world traction.

4. PayPal boosts PYUSD appeal with 3.7% yield, as Coinbase waives fees to support stablecoin adoption

PayPal Holdings Inc. is intensifying efforts to promote the adoption of its U.S. dollar-pegged stablecoin, PayPal USD (PYUSD), through strategic incentives and partnerships.​

In a significant move, PayPal announced that starting this summer, U.S. users of PayPal and Venmo will earn an annual yield of 3.7% on their PYUSD balances. This initiative aims to encourage users to hold and utilize PYUSD, positioning it as a competitive option in the stablecoin market. 

Complementing this, Coinbase, the leading publicly traded cryptocurrency exchange, has waived transaction fees for PYUSD and enabled direct redemption for U.S. dollars. This collaboration is designed to enhance PYUSD's accessibility and utility, particularly for merchants who can now settle transactions in PYUSD, bypassing traditional financial systems. 

These developments are part of PayPal's broader strategy to integrate PYUSD across its services, including plans to offer it as a payment option for over 20 million small-to-medium-sized merchants by the end of the year. By leveraging its extensive user base and strategic partnerships, PayPal aims to establish PYUSD as a mainstream medium for digital payments and decentralized finance applications.

5. Circle payments network: enabling real-time, low-cost cross-border transactions for financial institutions and fintechs

Circle Internet Group has announced the Circle Payments Network (CPN), a blockchain-powered platform designed specifically for financial institutions, fintech firms, payment providers, and digital wallets. The goal is to enable fast, cost-effective, and compliant cross-border payments using stablecoins. At launch, the network supports Circle’s regulated stablecoins—USDC and EURC—but is designed to accommodate a broader range of stablecoins in the future. The Circle Payments Network is a new technology service, expected to be released in a limited capacity in May.

By introducing a unified messaging protocol and on-chain settlement system, the CPN allows participants to send and receive funds across borders in real time, bypassing the high fees and delays of traditional payment rails. The network’s infrastructure aims to modernize global money movement by offering an interoperable and transparent alternative to legacy banking systems.

To support its rollout, Circle has partnered with more than 20 organizations, including fintech firms such as Fireblocks, WorldRemit, and Flutterwave. Leading global banks—Deutsche Bank, Santander, Standard Chartered, and Société Générale—are involved as strategic advisors, contributing insights to ensure the network meets the needs of institutional users and aligns with regulatory standards.

The launch of the CPN coincides with increasing regulatory clarity around stablecoins, particularly in the United States following the introduction of the STABLE Act. This legal framework enhances confidence in digital currency-based payment systems and is expected to accelerate adoption among mainstream financial players.

In positioning CPN as a new standard for cross-border payments, Circle is emphasizing openness, compliance, and scalability—paving the way for broader participation in the evolving digital financial ecosystem.

WHAT WE ARE READING

6. Spain’s University of the Hespérides Launches First Master’s in Bitcoin Program

7. New Hampshire Bitcoin Reserve Bill passed Senate committee

8. Missouri Bitcoin Reserve Bill SB 779 has passed the Senate Banking and Insurance Committee

9. HIVE Digital Technologies Announces 100% Completion of First 100 MW Infrastructure in Paraguay and Strategic Operational Hire

10. How Some Bitcoin Mining Firms Try to Game U.S. Customs Controls

11. Fidelity Tests Stablecoin in Latest Wall Street Blockchain Push

12. Dutch Bank ING Said to Be Working on a New Stablecoin With Other TradFi and Crypto Firms