Blockchain & Digital Assets Weekly Briefing - Week 24

Week ending 13th June 2025

This week in crypto has seen major global developments shaping the future of digital assets. Société Générale made headlines as the first major bank to launch a dollar-backed stablecoin on a public blockchain, while the UK took steps to strengthen crypto asset recovery in insolvency cases. South Korea and Hong Kong are advancing stablecoin regulations and pilots, signaling growing regional adoption. Meanwhile, Brian Quintenz, Trump’s CFTC nominee with deep crypto ties, is facing Senate scrutiny, highlighting the increasing overlap between crypto and U.S. regulatory leadership.

1. Société Générale becomes first major bank to launch dollar stablecoin on public blockchain.

2. UK appoints specialist to track and recover Bitcoin in insolvency cases.

3. South Korea’s ruling party unveils plan to allow stablecoins.

4. Hong Kong navigates the digital currency crossroads: between China’s CBDC ambitions and U.S. Dollar stablecoin growth.

5. Brian Quintenz, Trump’s pick to lead CFTC, has deep crypto ties, faces Senate scrutiny.

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1. Société Générale becomes first major bank to launch dollar stablecoin on public blockchain

Société Générale, via its crypto arm SG‑FORGE, has introduced USD CoinVertible (USDCV), a euro‑regulated, US Dollar–pegged stablecoin set to begin public trading in July 2025 on both Ethereum and Solana. This makes SG‑FORGE the first major European bank to issue a dollar‑denominated public stablecoin. While neither US nor euro versions will be available to U.S. persons, trading is open to institutional, corporate, and retail clients across non‑U.S. markets.

The USDCV will function under the European MiCA regulation as an Electronic‑Money Token, with SG‑FORGE regulated by French authorities ACPR/AMF. BNY Mellon will act as custodian for the collateral, which comprises liquid, highly rated assets; its composition and daily valuation will be disclosed on SG‑FORGE’s website.

USDCV follows SG‑FORGE’s earlier EUR‑pegged stablecoin (EURCV, $47.37 m market cap), and addresses growing demand for regulated dollar liquidity in Europe—mimicking the scale of US‑dominated stablecoins like Tether (US$155 bn issued) and Circle’s USDC.

Purpose & Market Positioning

USDCV targets a broad spectrum of use cases:

• Crypto trading: on‑chain settlement and exchange trading

• Cross‑border payments: faster, lower‑cost transfers without intermediaries

• Foreign exchange: digital currency conversions

• Collateral and treasury management: supporting institutional liquidity needs

SG‑FORGE, leveraging its EU e‑money licence, will enable 24/7 fiat‑to‑stablecoin conversions and listings on various crypto exchanges; liquidity support will come from major market‑maker partners.

Industry Context & Strategic Implications

• Regulatory momentum: The launch aligns with Europe’s MiCA framework, offering clarity around licensing, reserve backing, and transparency standards, allowing regulated players to enter what was once a largely unregulated space.

• Institutional adoption: SG‑FORGE becomes a trailblazer among traditional banks issuing stablecoins on public blockchains, following JPMorgan’s private JPM Coin but on open networks—challenging crypto‑native issuers like Tether and Circle.

• EU resilience: Providing regulated USD liquidity within Europe could reduce dependency on unregulated non‑EUstablecoins and support digital payment innovation amid evolving global financial infrastructure.

Société Générale’s USDCV marks a significant evolution: a fully regulated, dollar‑pegged stablecoin issued by a major European bank. Positioned for institutional, corporate, and retail use, it enables 24/7 utility across crypto trading, payments, and treasury operations. With MiCA compliance and BNY Mellon acting as custodian, USDCV not only adds to SG‑FORGE’s stablecoin suite (following EUR CoinVertible) but also strengthens Europe’s role in digital asset infrastructure—and challenges the dominance of U.S.-based stablecoin issuers.

2. UK appoints specialist to track and recover Bitcoin in insolvency cases

The UK government is stepping up efforts to track down and recover cryptocurrencies like Bitcoin that are increasingly appearing in insolvency and fraud cases. For the first time, the Insolvency Service has appointed a dedicated crypto recovery expert, signalling that digital assets are now a priority for government enforcement—not just for the financial markets.

Why the UK Government Is Acting

Cryptocurrencies have become too significant for the government to ignore. Over the past five years, the number of UK insolvency cases involving crypto has jumped by 420%—from just 14 cases in 2019/2020 to 59 cases in 2024/2025. The total value of crypto assets in these cases has grown from around £1,400 to more than £520,000.

At the same time, public ownership of crypto has soared. According to a 2024 Financial Conduct Authority survey, around 7 million UK adults—roughly 12% of the population—now hold cryptocurrencies like Bitcoin, Ethereum, or NFTs.

This rising use of crypto means that more assets at risk of being hidden in insolvency or fraud cases now exist in digital form. The UK government has recognised that it must develop the skills to track and recover these assets effectively.

The Government’s New Crypto Recovery Expert

To address this, the Insolvency Service has appointed Andrew Small, a former police investigator with a background in financial crime. His new role focuses on tracing, securing, and recovering crypto assets in insolvency and enforcement cases, particularly where there is suspected fraud.

Small will work within the Insolvency Service’s Investigation and Enforcement Services team, using specialist tools and knowledge to follow digital trails, understand blockchain technology, and track assets stored in crypto wallets.

Crypto Is Now a Government Priority

This appointment shows that cryptocurrencies have become important not just to investors, but to the UK government itself. By investing in specialist skills, the government is making it clear that crypto assets are no longer beyond its reach.

The Insolvency Service’s move reflects a wider effort to keep pace with the fast-evolving digital economy and ensure that people cannot use cryptocurrencies to hide assets or avoid paying their debts.

Ultimately, this is about protecting creditors, enforcing the law, and making sure that insolvency rules apply fully—even in the age of Bitcoin.

3. South Korea’s ruling party unveils plan to allow stablecoins

South Korea’s ruling Democratic Party is advancing its digital asset regulations with a new plan to legalize won-backed stablecoins. This initiative is part of the broader Digital Asset Basic Act, which aims to regulate a wide range of digital assets, including various asset-linked tokens.

By contrast, the U.S. GENIUS Act focuses narrowly on payment stablecoins and avoids applying a single framework to all digital assets. Another key difference is consumer protection: the U.S. bill enforces strong transparency, anti-fraud, anti-money laundering (AML), and know-your-customer (KYC) requirements. Meanwhile, South Korea’s legislation emphasizes transparency and reserve guarantees but currently lacks detailed user-facing protection rules.

A Pro-Crypto Leadership Takes Shape

At the center of South Korea’s pro-crypto pivot is Kim Yongbeom, recently appointed as Chief Policy Officer under President Lee Jae-myung’s administration. Kim is poised to play a leading role in shaping the nation’s crypto policies and potentially elevating South Korea’s global standing in the digital asset space.

Kim brings rare credibility: he is a seasoned former vice chairman of the Financial Services Commission and vice minister of Economy and Finance, known for helping steer South Korea through the COVID-era currency crisis. His blockchain expertise is equally deep—after leaving public service, Kim led Hashed Open Research, a think tank tied to leading crypto venture firm Hashed Ventures.

Industry leaders see Kim’s return to government as a game-changer. Simon Seojoon Kim, CEO of Hashed Ventures, credited Kim with saving the Korean crypto industry in 2018 when he successfully resisted a proposal to shut down all local exchanges. Instead, Kim introduced the real-name account system, which became the regulatory foundation for Korea’s crypto market.

"His appointment marks the beginning of Korea’s institutional crypto era," said John Park, head of Korea at the Arbitrum Foundation. "He uniquely combines central bank-level macroeconomic expertise with deep blockchain fluency."

South Korea’s Growing Crypto Market

Crypto has become a mainstream issue in South Korea, with an estimated 18 million people — more than one-third of the population — actively participating in digital assets. In this year’s presidential race, both leading candidates promised to legalize spot Bitcoin ETFs. President Lee went even further, proposing the issuance of stablecoins backed by the Korean won to modernize the country’s financial system and strengthen capital controls.

Lee’s ruling Democratic Party recently took a major step toward this goal by introducing the Digital Asset Basic Act, which would allow domestic companies to issue won-backed stablecoins. Under the bill, stablecoin issuers must hold at least 500 million won (around $367,876) in equity capital, guarantee refunds through fully backed reserves, and secure approval from the Financial Services Commission.

Strategic Goals and Lingering Risks

A key motivation behind the plan is to curb the increasing outflow of funds to foreign stablecoins like USDT and USDC by promoting trusted, won-denominated alternatives. However, the Bank of Korea has voiced concerns that privately issued stablecoins could undermine monetary policy control and has called for a supervisory role in overseeing these assets.

Crypto industry players, while welcoming the regulatory clarity, have warned of uneven enforcement. Currently, domestic stablecoin issuers face strict requirements, while foreign-backed stablecoins continue to trade freely on Korean exchanges.

Despite the optimism, some experts caution against moving too quickly. South Korea’s financial history includes the 1997 Asian Financial Crisis, linked to unmanaged foreign-exchange exposure, and the more recent 2022 collapse of TerraUSD, the failed algorithmic stablecoin created by Korean national Do Kwon.

Yet in the fast-paced world of crypto, the collapse of Terra now feels like a distant memory. With pro-crypto leadership in place and a population deeply engaged in digital assets, South Korea appears ready to enter a new era of regulated, institutionally supported crypto innovation.

4. Hong Kong navigates the digital currency crossroads: between China’s CBDC ambitions and U.S. Dollar stablecoin growth

Hong Kong is moving in step with the global push toward regulated digital assets, cautiously opening its markets to cryptocurrency and blockchain innovation. The city is not aiming to lead the crypto industry but is working to remain relevant as a key financial hub while balancing its unique role as a bridge between China and international markets.

Unlike mainland China, which is focused on advancing the digital yuan (e-CNY) to strengthen its sovereign control over digital payments, Hong Kong operates under a distinct monetary system where the Hong Kong Dollar is pegged to the U.S. Dollar. This peg means that the growth of stablecoins in Hong Kong—particularly those tied to the USD—could actually reinforce U.S. Dollar dominance in the region rather than challenge it.

Ant Group Eyes Stablecoin Expansion Across Key Markets

Ant International, the overseas arm of Jack Ma–backed Ant Group, is preparing to apply for licenses to issue fiat-referenced stablecoins (FRS) in Hong Kong, Singapore, and Luxembourg, according to Bloomberg. This follows the Hong Kong legislature’s passage of its Stablecoins Bill on May 21, which introduces a licensing regime requiring issuers to have robust reserve-asset management, redemption rights, risk controls, and compliance with anti-money laundering standards. The regime becomes effective later this year, with provisional licenses available shortly after commencement.

Stablecoins—digital assets pegged to fiat—play a growing role in cross-border payments and DeFi. In Hong Kong’s context, where the HKD remains pegged to the USD, widespread adoption of USD-backed stablecoins will further reinforce U.S. Dollar dominance in Asia’s digital economy. Specifically, by entering Hong Kong’s FRS licensing framework, Ant International aims to expand its regulated global digital payments network through compliant stablecoin issuance.

Hong Kong Pilots Chainlink Protocol as Part of CBDC and Stablecoin Settlement

In tandem with its new stablecoin framework, the Hong Kong Monetary Authority (HKMA) is also playing a central role in Project mBridge, an international pilot for cross-border CBDC and stablecoin settlement, leveraging Chainlink’s Cross‑Chain Interoperability Protocol (CCIP) in collaboration with the BIS Innovation Hub and the central banks of China, Thailand, and the UAE.

However, Hong Kong’s crypto strategy extends beyond regulatory pilots. According to a Caixin report, The city is also serving as a pragmatic financial channel for mainland China, particularly in the liquidation of large volumes of seized cryptocurrencies through licensed Hong Kong exchanges. This reflects Hong Kong’s unique position as both an innovation sandbox and a financial outflow mechanism for China’s crypto holdings.

Importantly, Hong Kong officials are now looking to stablecoins as practical payment tools within China’s Belt and Road Initiative (BRI)—the massive global infrastructure program that spans dozens of countries and demands efficient cross-border settlement solutions. Beginning of June, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, suggested that stablecoins could help facilitate BRI transactions, offering a faster and more accessible payment rail than waiting for full CBDC integration via mBridge.

While Project mBridge is a technically ambitious effort, expanding it to new countries requires significant time and regulatory coordination. Stablecoins, by contrast, can be deployed almost immediately under Hong Kong’s new regulatory framework, offering a faster, more scalable solution for near-term cross-border trade. This likely explains the growing preference for stablecoins in Hong Kong’s regional strategy, even as the city continues to invest in CBDC interoperability pilots.

Hong Kong’s evolving role reflects its ability to balance innovation, regulatory control, and geopolitical utility—acting both as a sandbox for China’s digital finance ambitions and as a gateway for broader global adoption of stablecoins tied to the U.S. Dollar.

5. Brian Quintenz, Trump’s pick to lead CFTC, has deep crypto ties, faces Senate scrutiny

Brian Quintenz is President Trump’s choice to chair the CFTC. A former CFTC commissioner (2017–2021), he later joined Andreessen Horowitz’s crypto division as Head of Crypto Policy. He also currently holds positions on the board of KalshiEx—a prediction‑market exchange with a recent legal dispute with the CFTC—and the Crypto Council for Innovation.

Financial Disclosures & Ethics Commitments• Quintenz reported approximately $3.4 million in crypto‑related assets, spanning investments in a16z funds, Kalshi, and Next Level Derivatives. To address potential conflicts, he pledged to divest Kalshi shares and a16z funds, resign from industry roles, recuse from related matters for up to two years, and surrender unvested options within 90 days of confirmation.

Senate Hearing Highlights• During his June 10 Senate Agriculture Committee hearing, Quintenz stressed Congress must legislate a regulatory framework to enable crypto’s potential, balancing industry growth with consumer protection. He expressed openness to expanded CFTC authority in digital assets, aligning with industry advocates and Trump’s push to treat cryptocurrencies as commodities.

Regulatory Context & the Clarity Act

Quintenz’s nomination comes as the Digital Asset Market Structure Clarity Act moves through Congress with bipartisan support.

The proposed legislation seeks to resolve regulatory uncertainty by clearly dividing responsibility between the Securities and Exchange Commission (SEC) and the CFTC. Under the bill, digital commodities—blockchain-based assets—would fall primarily under the CFTC’s jurisdiction, which would oversee their spot markets.

If confirmed, Quintenz would likely play a central role in shaping how the CFTC interprets and enforces this emerging framework.

Agency Transition• Quintenz’s confirmation could coincide with major turnover at the CFTC—several current commissioners, including Democrats, are stepping down—leaving the agency potentially unbalanced. His nomination forms part of a broader Trump administration movement to promote crypto‑friendly oversight, alongside other nominations like Paul Atkins leading the SEC.

WHAT WE ARE READING (OR WATCHING)

6. Apple, X, and Airbnb among growing number of Big Tech firms exploring crypto adoption

7. Amazon and Walmart Weigh Issuing Own Stablecoins, WSJ Says

8. Stablecoin issuer Circle targets UAE’s $47bn remittance corridor

9. Deutsche Bank Explores Stablecoins and Tokenized Deposits

10. US Congress Pushes to Make Bitcoin Reserve Law

11. National Bitcoin reserve bill lands in Ukraine’s parliament

12. SEC Chair Paul Atkins exorcises Gensler with sweeping crypto rule rollbacks

13. Gold Rally Brings Riches to Rural Zimbabwe

14. Dollar-Obsessed Argentines Have a Newfound Love for Buying Gold

15. Alexandre Stachtchenko: "Showing how Bitcoin can be an asset for France's energy and financial sovereignty"

16. Warning: Europe Might Irrevocably Make Bitcoin Illegal

17. World’s Top Carry Trade Renews Debate Over Hong Kong Dollar Peg