Blockchain & Digital Assets Weekly Briefing - Week 25

danae317
Jun 20
11 min read

Week ending 20th June 2025

Blockchain & Digital Assets Weekly Briefing

This week’s highlights showcase major shifts in the crypto landscape. The U.S. Senate advances stablecoin regulation, Visa and Coinbase push crypto payments into the mainstream, and JPMorgan makes history with the first bank deposit token on a public blockchain. Meanwhile, a major hack in Iran and China’s strategic digital currency moves signal rising global stakes. Here's what you need to know.

U.S. Senate passes groundbreaking stablecoin bill as market surges to $250 Billion: Visa calls stablecoins the future of payments.
Coinbase rolls out stablecoin payments for e-commerce in Shopify partnership.
Iranian crypto exchange Nobitex suffers $90 Million hack, prompting government crackdown.
China’s strategic response to dollar-pegged stablecoins: the rise of the e‑CNY and Shanghai’s New International Center.
A banking first: JPMorgan debuts deposit token on public blockchain.

U.S. Senate passes groundbreaking stablecoin bill as market surges to $250 Billion: Visa calls stablecoins the future of payments

In a historic moment for the cryptocurrency sector, the U.S. Senate has passed the Stablecoin Bill, setting the stage for the first comprehensive regulation of stablecoins in the country. The bill’s passage is being widely celebrated as a transformative step that could legitimize and accelerate the adoption of digital assets. Industry pressure has added significant momentum to the bill’s advancement: backed by a bipartisan Senate vote of 68–30 and a $119 million pro-crypto campaign effort, the legislation now carries serious political weight as it heads to the House of Representatives. This legislation, passed on June 17, 2025, is set to reshape the future of digital finance by offering clarity, structure, and safeguards for stablecoin issuers and users.

A Regulatory Milestone With Broader Implications

The Senate’s approval of the bill on June 17, 2025, signals a major shift in how the U.S. approaches the regulation of digital currencies. The legislation introduces strict consumer protection standards, requires stablecoin issuers to maintain fully backed reserves, and establishes clear oversight mechanisms for both state and federal regulators.

However, the bill is not yet law. It must now pass the House of Representatives before it can be sent to President Donald Trump, who has publicly praised the bill, calling it a "genius act."

Big Tech and Foreign Issuers Under Scrutiny

One of the key concerns driving the bill is the potential dominance of big tech companies and foreign stablecoin issuers. Lawmakers worry that without clear regulation, powerful technology firms or foreign-backed stablecoins could undermine U.S. monetary policy or bypass regulatory safeguards.

The bill aims to ensure that stablecoin issuance remains primarily under U.S. regulatory control, mitigating the risk of foreign or unregulated entities gaining too much influence over the digital currency market.

The Crypto Industry’s $119 Million Political Push

The crypto sector has heavily lobbied for regulatory clarity. In fact, the crypto industry spent $119 million in the last election cycle supporting pro-crypto candidates, making it one of the most aggressive lobbying efforts in Washington in recent years. This significant political investment underscores the industry's determination to shape a regulatory environment favorable to digital assets.

The bipartisan momentum behind the bill reflects not just political alignment but also the success of this coordinated lobbying campaign.

Stablecoin Market Explodes to $250 Billion

Since the announcement and passage of the bill, the stablecoin market has skyrocketed to a total market capitalization of $250 billion, reflecting renewed investor confidence and heightened demand. Analysts credit the surge to the regulatory certainty the bill provides, which is now encouraging broader adoption across financial services, decentralized finance (DeFi), and cross-border transactions.

Stocks React: Circle and Coinbase Leap

The market response was swift and pronounced. Circle’s stock jumped approximately 34%, closing near $200, on reports of the Senate’s approval. Meanwhile, Coinbase shares surged about 16–17%, climbing to around $295–$297, after also unveiling a new stablecoin payments service integrated with Shopify. These sharp gains highlight how publicly traded crypto firms stand to benefit directly from enhanced regulatory clarity.

Visa: Stablecoins Are the Future of Money Movement

Adding further weight to the importance of stablecoins, Visa recently stated that every institution involved in moving money will soon need a stablecoin strategy. According to Visa’s leadership, stablecoins are not just a niche innovation but a foundational technology that will become critical for global payment systems.

Global settlement pilots: Visa has already processed over $225 million in stablecoin settlement volume via their treasury-enabled stablecoin infrastructure. The company is working toward seven-day-a-week settlement across more markets.
Partnership With Yellow Card in Africa: A major part of Visa’s stablecoin expansion is its new partnership with Yellow Card, one of Africa’s leading crypto-based payment platforms. This collaboration enables real-time, blockchain-powered cross-border payments across multiple African countries, significantly reducing settlement times and costs. It represents a direct response to the inefficiencies of traditional international money transfers and opens stablecoin rails to millions of users on the continent.
Wider card acceptance: Through a partnership with Bridge (a Stripe company), Visa now supports stablecoin‑linked Visa cards. Fintech developers can integrate via a single API to allow customers in regions like Latin America—and soon Europe, Africa, and Asia—to pay with stablecoin balances at any of 150 million+ Visa‑accepting merchants.
Expanding programmable money & settlement rails: Visa’s longer-term vision includes programmable money, facilitating on-chain operations like smart-contract–triggered loans, and the Visa Tokenized Asset Platform (VTAP), enabling banks to mint, burn, and manage stablecoins on-chain in 2025.
Visa’s stance is clear: “Every institution that moves money will need a stablecoin strategy.” said Godfrey Sullivan, Visa’s Senior Vice President and Head of Product and Solution for CEMEA. These tangible initiatives—from on-chain settlement to stablecoin cards—demonstrate that this isn’t hype; Visa is building the infrastructure to support widespread adoption.

What’s Next?

Although the Senate’s passage of the Stablecoin Bill is a breakthrough, the next hurdle is the House vote. If passed there, the bill would head to Trump’s desk for final approval—a moment that would mark the official beginning of a regulated stablecoin era in the U.S.

The coming weeks will be critical as lawmakers, financial institutions, and the crypto industry await the House’s decision. Regardless of the timeline, it’s now clear that stablecoins are no longer operating in the shadows—they are on track to become a regulated, integral part of the global financial system.

Coinbase rolls out stablecoin payments for e-commerce in Shopify partnership

Coinbase has unveiled Coinbase Payments, a comprehensive solution enabling commerce platforms to seamlessly accept 24/7, instant USDC stablecoin payments without blockchain complexity. This tool is designed for plug‑and‑play integration across marketplaces, PSPs (Payment Service Providers), and merchants, offering real-time settlement, global reach, and lower costs compared to traditional payment rails.

Core Features Explained

Instant & Final Settlements. Transactions settle in real time around the clock, eliminating chargeback risks and volatility issues.
Global by Default. Enables cross-border commerce without FX fees: merchants can receive funds in USDC or opt for local currency payouts.
Plug-and-Play Infrastructure. Includes embeddable UI, API support, and commerce primitives (auth/capture, refunds, subscriptions), built on stablecoin rails.
Open, Programmable Escrow (smart contract). Funds can be held and released on-chain using merchant-configurable rules—compliant and auditable.
Compliance & Security. Built on the open-source Onchain Payment Protocol, equipped with KYC/KYT screening and bans/OFAC checks.

Shopify Partnership – A Big Win for Merchants

On June 12, 2025, Coinbase and Shopify launched a major partnership. Merchants using Shopify Payments can now accept USDC on Coinbase’s Base (Ethereum L2).

Highlights include:

Early access now, with full rollout coming later in the year.
1% cash-back rewards for customers in the U.S. paying with USDC (this is at no cost to merchants).
Built-in commerce features: supports delayed capture, tax handling, and refunds through a smart contract-based protocol.
Zero FX fees on cross-border USDC transactions, with merchant funds settled either in USDC or local currency.

Why It Matters

Stablecoins like USDC are experiencing explosive growth—USDC supply has surged ~54% year-over-year. The Coinbase‑Shopify collaboration highlights a broader industry strategy to shift commerce to programmable money, offering lower costs, increased transparency, and real-time settlement. Major players (Apple, X, Airbnb, Stripe) are reportedly exploring stablecoin integration, reflecting crypto's rising role in payments.

Looking Ahead

Coinbase promises ongoing enhancements:

Expanded network support
Richer merchant tools (e.g., loyalty features, subscription models)
Broader stablecoin and currency integration

Iranian crypto exchange Nobitex suffers $90 Million hack, prompting government crackdown

In a significant escalation of cyber warfare in the Middle East, Iran’s largest cryptocurrency exchange, Nobitex, was recently the target of a devastating cyberattack that resulted in the theft of over $90 million in digital assets. This incident has not only rattled the Iranian crypto market but has also prompted swift regulatory intervention from Iranian authorities, including the imposition of a curfew on crypto exchanges.

The Nobitex Hack: What Happened?

On June 18, 2025, reports emerged detailing a sophisticated cyberattack on Nobitex, a Tehran-based crypto trading platform that dominates the Iranian digital currency landscape. According to sources, the breach led to a massive outflow of various cryptocurrencies from user wallets, totaling approximately $90 million in losses.

Further investigations have linked the attack to a hacker collective known as "Predatory Sparrow", a group widely believed to have ties to Israel. The group has a known history of targeting Iranian infrastructure and organizations, often in cyber-espionage or sabotage campaigns. While direct attribution in cyberattacks is notoriously challenging, multiple cybersecurity analysts have noted similarities between this breach and previous operations carried out by Israel-affiliated groups.

This hack not only inflicted financial damage but also highlighted the vulnerability of Iran’s digital financial systems, especially amid tightening international sanctions that have driven Iranian businesses and citizens toward decentralized finance as an alternative to restricted traditional banking.

Iran’s Response: Curfew on Crypto Exchanges

In the immediate aftermath of the attack, Iranian authorities moved quickly to impose strict operational curfews on cryptocurrency exchanges operating within the country. According to a report from Crypto News, exchanges are now required to halt transactions during specific hours, a move intended to limit exposure to further cyber threats and give regulators greater oversight.

The Iranian government’s emergency measures also include tighter monitoring of crypto transactions, more stringent cybersecurity protocols for exchanges, and potential restrictions on certain types of crypto activities, especially those involving cross-border transactions that could circumvent government controls.

Broader Implications: A Vulnerable Ecosystem

The Nobitex hack underscores the growing strategic importance of cryptocurrency in Iran. Over the past few years, as Iran has faced severe international sanctions, digital assets have become an increasingly popular tool for trade, investment, and even sanctions evasion. Platforms like Nobitex have played a crucial role in enabling ordinary Iranians to access global financial markets.

However, this reliance on crypto has also exposed critical weaknesses in Iran’s cybersecurity infrastructure. Unlike highly regulated financial institutions, many local crypto exchanges lack the advanced security systems necessary to defend against well-resourced, state-sponsored hackers.

The attack also raises concerns about the broader geopolitical dimension of cyber warfare in the region. If Israeli-linked actors are confirmed to be behind the breach, this would mark yet another chapter in the ongoing shadow conflict between Iran and Israel, increasingly fought not just on physical battlefields but in the digital realm.

China’s strategic response to dollar-pegged stablecoins: the rise of the e‑CNY and Shanghai’s New International Center

China is intensifying its efforts to challenge the growing influence of dollar-pegged stablecoins such as USDT and USDC by accelerating the development and internationalization of its central bank digital currency (CBDC), the digital yuan (e‑CNY). Central to this strategy is the launch of the e‑CNY International Center in Shanghai, which will serve as a key platform to expand the digital yuan’s global reach.

Shanghai’s e‑CNY International Center: A Global Launchpad

Announced by People’s Bank of China (PBOC) Governor Pan Gongsheng at the 2025 Lujiazui Forum, the Shanghai e‑CNY International Center is one of eight key policy measures aimed at advancing the internationalization of the digital yuan, according to Xinhuanet. The center will focus on facilitating cross-border digital currency transactions, enhancing financial market infrastructure, and supporting the integration of the e‑CNY into international payment systems.

The center is expected to play a significant role in increasing foreign participation in the digital yuan ecosystem and in expanding its use in cross-border trade, financial markets, and settlement processes.

Policy Innovations to Support e‑CNY Growth

Shanghai will also pilot blockchain-based trade finance tools as part of China’s broader structural monetary policy innovations. These tools are designed to improve transparency, reduce settlement risk, and enhance efficiency in cross-border trade, particularly for enterprises involved in international commerce.

In addition, Shanghai plans to develop offshore free trade bonds under the "two ends abroad" principle (bonds that are both raised and spent overseas). These bonds will follow internationally accepted financial standards and aim to broaden financing channels for companies participating in China’s Belt and Road Initiative (BRI).

It’s a way to internationalize the yuan and expand financial tools in free trade zones like Shanghai without undermining the controlled onshore financial system. It also helps Chinese companies (especially those in Belt and Road Initiative projects) raise funds internationally under widely accepted standards, supporting China’s financial opening without increasing domestic financial risk. And it keeps the capital outside China’s domestic financial system, avoiding complications with strict capital controls.

Addressing Adoption Challenges

Despite strong government support since the digital yuan’s 2019 pilot launch, the e‑CNY has faced slower-than-expected domestic adoption. Consumers in China still overwhelmingly prefer established mobile payment platforms such as Alipay and WeChat Pay, which remain dominant in transaction volume and everyday use.

While the e‑CNY is now technically accessible on these private platforms, most users continue to rely on their traditional bank-linked balances rather than switching to digital yuan wallets. The new Shanghai international center specifically targets this adoption gap by focusing on expanding international usage and developing the e‑CNY’s financial market applications.

Promoting a Multi-Polar Currency System

Governor Pan emphasized during the forum that China is committed to promoting a multi-polar international monetary system that reduces over-reliance on the U.S. dollar. This approach directly supports China’s broader push to position the e‑CNY as a credible, state-backed alternative to dollar-pegged stablecoins in international trade and finance.

China is also actively participating in multi-CBDC initiatives, including the BIS-led mBridge project, working alongside Saudi Arabia, Hong Kong, Thailand, and the UAE. However, no recent public updates on the project's progress have been reported.

Expanding International Usage

China has already begun deploying the digital yuan in cross-border transactions. For example, a Shanghai-based Bank of China branch completed a 100 million yuan e‑CNY trade settlement, demonstrating real-world international use.

Hong Kong has also emerged as a key testing ground for cross-border e‑CNY retail transactions. In parallel, more foreign banks have joined China’s Cross-Border Interbank Payment System (CIPS), which further strengthens the infrastructure for international yuan settlements.

China is simultaneously expanding the use of QR-based UnionPay payment solutions across Southeast Asia, supporting its effort to make the yuan a more widely accepted currency in regional and global commerce.

Brief aside:As broader economic news indicates, China also recently formalized financing for a major hydropower project in Pakistan—reflecting its growing infrastructure and energy ties abroad, though not directly tied to the digital yuan initiative.

A banking first: JPMorgan debuts deposit token on public blockchain

JPMorgan Chase is set to pilot a groundbreaking digital deposit token, JPMD, designed to represent U.S. dollar deposits on a public blockchain. This marks a significant milestone—the first instance of a major U.S. commercial bank placing deposit-backed tokens on a public network.

Key Highlights

Token Launch via Coinbase’s Base. JPMorgan will mint a predetermined amount of JPMD in its digital wallet and transfer them to Coinbase, using the Base layer-2 blockchain (Ethereum L2)—a network known for fast, low-cost transactions.
Institutional Pilot Program. Initially, JPMD will be permissioned and limited to institutional clients linked to Coinbase. The trial will span several months. Depending on regulatory outcomes, JPMorgan may broaden the offering to more users, including different currencies.
What Sets JPMD Apart
- JPMD offers a direct claim on commercial bank deposits, unlike traditional stablecoins backed by separate reserves.
- It provides scalability thanks to fractional banking and could support interest-bearing features and deposit insurance—capabilities uncommon in current stablecoin models.
Kinexys and Blockchain Expansion. JPMorgan’s blockchain division—Kinexys (formerly Onyx and JPM Coin)—already powers daily tokenized payments over $2 billion in volume. JPMD extends these capabilities to a public chain, reinforcing the bank’s digital finance strategy.

Why It Matters

Traditional Meets Web3: This development bridges conventional banking and decentralized finance (DeFi), enabling institutional clients to settle real-world money on public blockchain networks with greater speed and efficiency.
Regulatory Edge: JPMD represents an on-chain expression of bank-regulated money—offering compliance, transparency, and potential to fall under existing banking protections.
Competitive Differentiator: With stablecoin regulation evolving (e.g., the recent U.S. Senate action on stablecoin legislation), JPMorgan is positioning itself ahead of both fintech and crypto-native competitors.

Looking Ahead

The JPMD pilot is underway as of mid-June 2025 and may run for several months. The next phases hinge on regulatory approval and performance outcomes, determining whether JPMD could expand into retail use, additional currencies, or wider institutional access.

U.S. Senate passes groundbreaking stablecoin bill as market surges to $250 Billion: Visa calls stablecoins the future of payments.

Coinbase rolls out stablecoin payments for e-commerce in Shopify partnership.

Iranian crypto exchange Nobitex suffers $90 Million hack, prompting government crackdown.

China’s strategic response to dollar-pegged stablecoins: the rise of the e‑CNY and Shanghai’s New International Center.

A banking first: JPMorgan debuts deposit token on public blockchain.

U.S. Senate passes groundbreaking stablecoin bill as market surges to $250 Billion: Visa calls stablecoins the future of payments

Coinbase rolls out stablecoin payments for e-commerce in Shopify partnership

Iranian crypto exchange Nobitex suffers $90 Million hack, prompting government crackdown

China’s strategic response to dollar-pegged stablecoins: the rise of the e‑CNY and Shanghai’s New International Center

A banking first: JPMorgan debuts deposit token on public blockchain

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