Blockchain & Digital Assets Weekly Briefing - Week 26

danae317
Jun 27
13 min read

Updated: Jul 4

Week ending 27th June 2025

Blockchain & Digital Assets Weekly Briefing

This week’s briefing highlights Texas making bold moves as the U.S.’s economic powerhouse by backing Bitcoin with a strategic reserve. Meanwhile, key regulatory and industry players are advancing crypto integration—from U.S. mortgage regulators recognizing crypto assets, to Mastercard and Paxos launching multi-stablecoin initiatives, Baillie Gifford’s tokenised fund debut in the UK, and South Korea’s banking consortium progressing with a won-backed stablecoin.

Texas, the economic giant: second-largest U.S. state bets on Bitcoin with strategic reserve.
U.S. Regulator directs Fannie Mae and Freddie Mac to recognize crypto assets in mortgage assessments.
Mastercard joins Paxos’ Global Dollar Network, launches multi-stablecoin strategy with new partnerships.
Pioneering the future: Baillie Gifford launches the UK’s first fully tokenised fund.
South Korean bank consortium moves toward launching won-backed stablecoin.

Texas, the economic giant: second-largest U.S. state bets on Bitcoin with strategic reserve

In a bold move reflecting its economic stature—Texas ranks just below France in GDP and is the second-largest U.S. state by size—the state has taken a monumental step by enacting Senate Bill 21 (SB 21). This places Texas as the third U.S. state, after New Hampshire and Arizona, to legislate a state-level Bitcoin reserve.

SB 21: Legal Blueprint for the Strategic Bitcoin Reserve

SB 21, authored by Senator Charles Schwertner, creates the Texas Strategic Bitcoin Reserve under the control of the Comptroller of Public Accounts.
The bill passed the Texas Senate 25–5 in March 2025 and the House 101–42 in May, before being enrolled and signed into law by Governor Abbott on June 21, 2025.
It empowers the Comptroller to buy, sell, stake, hold donations, and other transactions of cryptocurrencies with a market cap over $500 billion—currently, this exclusively includes Bitcoin.
A five-member advisory board will oversee policy, and the Comptroller must publish biennial audits and performance reports.

HB 4488: Securing the Fund as Permanent Law

On June 21, 2025, Governor Abbott signed House Bill 4488, ensuring that any future Strategic Bitcoin Reserve established by SB 21 would be:

Treated as a permanent, standalone fund;
Shielded from legislative budget sweeps into general revenue;
Exempt from automatic abolition unless explicitly dissolved by law.

This legal protection cements the fund’s permanence, regardless of whether any Bitcoin has been purchased.

Funding: Authorized—but Still Not Allocated

Though SB 21 now allows for reserve formation, no actual funds have been allocated yet. Potential funding sources include:

Rainy Day Fund: Up to $250 million—pending approval of HB 4258, which remains in committee.
General Revenue Fund: Texas could redirect a small percentage from its $120 billion annual revenue, contingent on further legislative approval—though competition with schools and public services may limit appetite.
Alternative Sources: Donations, airdrops, forks, seized crypto assets, and future crypto tax revenues—all with no set cap.

But without new funding bills, no Bitcoin can yet be purchased.

Timeline: When Will Texas Buy Its Bitcoin?

With HB 4488 now enacted, Texas has the legal scaffolding to create and safeguard a Bitcoin reserve. However:

SB 21 became law on June 21, signed by Governor Abbott.
HB 4258 remains stalled, so budget allocations can’t occur until it passes.
Unless a special session convenes, funding decisions can’t be made until the next regular legislative session in January 2027.

SB 1498: Expanding Forfeiture to Digital Assets

Additionally, Texas has enacted SB 1498, relating to civil asset forfeiture, which will explicitly classify digital currencies, NFTs, and stablecoins as contraband subject to seizure—effective September 1, 2025. This marks a major step in updating the legal framework for digital asset regulation in Texas.

Texas in the National Context

By combining SB 21’s legal framework, HB 4488’s protections, and now SB 1498’s expanded asset-forfeiture powers, Texas positions itself at the forefront of state-level crypto governance:

As the third state (after New Hampshire and Arizona) to authorize a sovereign Bitcoin reserve, Texas also becomes the first to protect and publicly fund one.
SB 1498 further modernizes state law, advancing Texas’s stance on crypto regulation and enforcement—illustrating a comprehensive approach to both asset acquisition and legal oversight.

Bottom Line

Texas has methodically constructed a legal and structural foundation to incorporate Bitcoin into its public financial strategy, complete with governance, reporting, and legal protections. With SB 1498 also enacted, the state ensures that digital assets are fully integrated into its legal system—from acquisition to potential seizure.

However, without funding bills like HB 4258, the Strategic Bitcoin Reserve remains a potent blueprint on paper, awaiting activation. If executed, Texas could emerge as the first U.S. state to hold significant Bitcoin in public reserves, setting a new precedent in fiscal innovation.

U.S. Regulator directs Fannie Mae and Freddie Mac to recognize crypto assets in mortgage assessments

On June 25, 2025, the Federal Housing Finance Agency (FHFA) issued a directive requiring Fannie Mae and Freddie Mac to begin considering verified cryptocurrency holdings as part of borrower asset evaluations in the mortgage underwriting process. This marks the first formal acknowledgment by U.S. housing regulators of digital assets in federally backed mortgage criteria.

According to the FHFA, the policy applies to cryptocurrencies held on regulated U.S.-based centralized exchanges. These holdings must be verifiable and meet specific compliance standards to qualify as part of a borrower’s financial reserves when applying for a home loan.

Fannie Mae and Freddie Mac—government-sponsored enterprises (GSEs) responsible for purchasing and guaranteeing mortgages—have been instructed to develop implementation proposals "as soon as reasonably practical." These proposals are expected to outline the procedures and standards for incorporating digital asset data into loan assessments.

The directive was announced by FHFA Director William Pulte, who also shared the news via social media.

In a June 25 tweet, Pulte wrote, “Crypto assets—when held legally and safely—can now be considered by Fannie Mae and Freddie Mac in assessing a borrower’s ability to repay their mortgage. SO ORDERED”

The FHFA stated that this change aligns with its mission to ensure responsible innovation and improve access to credit. It also emphasized that the policy is designed to include only those assets that can be appropriately risk-assessed and verified under existing regulatory frameworks.

The move comes amid growing efforts across federal agencies to clarify the role of digital assets in the financial system. Fannie Mae and Freddie Mac will now begin the process of defining standards for qualifying crypto assets, likely addressing factors such as asset volatility, documentation requirements, and reserve calculations.

Further guidance is expected in the coming months as the GSEs submit their respective implementation frameworks to the FHFA.

Mastercard joins Paxos’ Global Dollar Network, launches multi-stablecoin strategy with new partnerships

Mastercard has announced a comprehensive expansion into the regulated stablecoin ecosystem, formalizing partnerships with multiple issuers—including Paxos, PayPal, Circle, and Fiserv—to enable a portfolio of U.S. dollar-pegged stablecoins across its global network. This initiative introduces new capabilities through Mastercard Move and the Mastercard Multi-Token Network (MTN), aimed at advancing stablecoin utility in cross-border payments, B2B transactions, and digital wallets.

Mastercard Joins Global Dollar Network to Enable USDG

As part of its collaboration with Paxos, Mastercard will become a key partner in the Global Dollar Network (GDN), a platform designed to connect blockchain-based stablecoin infrastructure to traditional financial institutions. Through this partnership, Mastercard will enable participating banks and fintechs on its network to mint, distribute, and redeem USDG—Global Dollar, a regulated single-currency stablecoin issued by Paxos Digital Singapore Pte. Ltd.

USDG is fully backed by U.S. dollar reserves and designed to comply with the Monetary Authority of Singapore’s (MAS) upcoming stablecoin regulatory framework. By integrating USDG into its payment rails, Mastercard aims to offer financial institutions and wallets direct access to stablecoin capabilities within its existing infrastructure.

Expanding Support for Regulated Stablecoins

Beyond USDG, Mastercard is integrating three other major U.S. dollar-pegged stablecoins into its network:

FIUSD (Fiserv): In partnership with Fiserv, Mastercard plans to support FIUSD for a range of applications, including merchant settlement, card issuance, and digital on/off ramps. This includes embedding FIUSD within Mastercard’s services to simplify transactions between stablecoin and fiat ecosystems.
PYUSD (PayPal): Mastercard and PayPal are expanding their relationship to explore settlement use cases involving PayPal USD (PYUSD), with a focus on leveraging Mastercard’s network infrastructure for future on-chain payment flows.
USDC (Circle): Mastercard continues to support USDC, the second-largest stablecoin by market capitalization, and is working on deeper integrations across products as the digital asset ecosystem develops.

This multi-stablecoin approach gives Mastercard flexibility to adapt to different market needs and regulatory environments while encouraging competition among issuers operating under transparent and compliant frameworks.

New Infrastructure: Mastercard Move and Multi-Token Network

These stablecoin integrations are underpinned by Mastercard Move and the Mastercard Multi-Token Network (MTN), two infrastructures designed to support programmable payments and digital asset settlement:

Cross-Border Payments: Mastercard Move will enable wallets and financial institutions to send and receive stablecoin payments across borders with lower friction compared to traditional rails.
Programmable B2B Payments: The MTN is being developed to facilitate tokenized B2B payments and digital commerce. Fiserv, through its Digital Asset Platform powered by Finxact, is expected to be an early adopter of MTN capabilities for on-chain settlement and programmable finance.

New Partnership with Fiserv to Accelerate Stablecoin Adoption

In a related announcement, Mastercard and Fiserv have formalized a strategic partnership aimed at accelerating the mainstream adoption of stablecoins. Fiserv, a major financial technology provider, processes over 90 billion transactions annually for more than 10,000 financial institutions and 6 million merchants worldwide. As part of its digital asset strategy, Fiserv has introduced FIUSD, a U.S. dollar-backed stablecoin issued on the Solana blockchain, with custody and compliance support from Paxos and Circle. FIUSD is designed for commercial use cases, including merchant settlement, cross-border payments, and programmable B2B transactions.

Through its partnership with Mastercard, Fiserv will integrate Mastercard’s tokenized settlement capabilities into its infrastructure, making FIUSD usable across a wide range of payment scenarios. The stablecoin will be embedded into Mastercard products and services, such as digital on/off ramps and card issuance, enabling banks and merchants to handle both fiat and stablecoin flows within a unified framework.

According to the companies, this collaboration is designed to provide financial institutions with “off-the-shelf” access to compliant digital asset tools, helping them overcome the technical and regulatory challenges often associated with entering the stablecoin market. Given Fiserv’s extensive reach in global payments infrastructure and its direct role in launching FIUSD, the partnership could significantly accelerate stablecoin deployment and adoption at scale.

Broader Strategy: Compliance and Interoperability

Mastercard emphasizes that only registered, transparent, and regulatory-compliant stablecoins will be supported within its network. This principle underpins the company’s efforts to shape the role of stablecoins in everyday payments while ensuring safety, scalability, and trust. By combining its global payment infrastructure with blockchain technology, Mastercard is positioning itself as a key intermediary between traditional finance and the emerging world of tokenized money.

The company has not specified timelines for commercial rollouts but has framed this initiative as a foundational step in enabling real-world utility for digital currencies within regulated frameworks.

Competitive Pressures from Stablecoin Adoption

The growing corporate interest in stablecoins is not only about technological innovation but also reflects increasing pushback against the high fees traditionally charged by payment networks like Mastercard and Visa. Retailers and businesses have long criticized the interchange fees—typically ranging from 1.5% to 3.5% per transaction—that they pay to card networks.

According to recent industry analysis, some companies have started adopting stablecoin-based payment solutions precisely to bypass these fees, which could offer faster settlement times and lower costs. The stablecoin model enables direct, blockchain-based payments that can significantly reduce the layers of intermediaries involved in traditional card processing.

As stablecoin infrastructure matures and regulatory clarity improves, there is speculation that such alternatives could eventually present a material challenge to the dominant position of legacy payment providers. Mastercard’s proactive engagement with stablecoins appears, in part, to be a strategic response to this potential disruption.

Pioneering the future: Baillie Gifford launches the UK’s first fully tokenised fund

In a significant advancement for the UK’s financial sector, Baillie Gifford, with £197bn of assets under management, has introduced the country’s first fully tokenised fund. This initiative marks a pivotal moment in the integration of blockchain technology within traditional asset management.

A Groundbreaking Step in Asset Management

The newly launched tokenised fund serves as a feeder to Baillie Gifford’s longstanding Strategic Bond Fund, a cornerstone of the firm's offerings for over 25 years. This move signifies the firm's commitment to exploring innovative solutions that enhance operational efficiency and client service.

Pilot Programme and Controlled Environment

To assess the viability and benefits of tokenisation, Baillie Gifford initiated a six-month pilot programme on February 11, 2025. During this period, the tokenised fund was exclusively available to a select group of internal, whitelisted clients. This controlled environment allowed the firm to rigorously evaluate the technology and gather valuable insights, ensuring a comprehensive understanding of its implications.

Blockchain Infrastructure and Regulatory Engagement

The tokenised fund operates on the public Ethereum blockchain, a widely recognised platform known for its security and transparency features. Archax, the UK's first FCA-regulated digital securities exchange, broker, and custodian, provides the necessary infrastructure to support the fund's operations. Baillie Gifford has maintained regular communication with the Financial Conduct Authority (FCA) throughout the pilot programme, ensuring compliance with regulatory standards and fostering a collaborative approach to innovation.

Strategic Implications and Industry Recognition

Baillie Gifford's venture into tokenisation aligns with broader industry trends towards digital transformation. The European Fund and Asset Management Association (EFAMA) highlighted this development in its June 2025 report, noting that Baillie Gifford received FCA authorisation for and launched the first tokenised UK Open-Ended Investment Company (OEIC). This recognition underscores the firm's leadership in embracing technological advancements within the asset management landscape.

Looking Ahead

As the pilot programme progresses, Baillie Gifford aims to expand the availability of the tokenised fund, potentially offering it to a broader range of investors. The insights gained from this initiative are expected to inform future strategies, contributing to the ongoing evolution of asset management practices in the UK.

South Korean bank consortium moves toward launching won-backed stablecoin

Eight prominent banks in South Korea have reportedly formed a consortium to develop and issue a stablecoin pegged to the Korean won (KRW), marking a significant move in the country’s transition toward regulated digital financial infrastructure. The effort comes amid growing regulatory interest and careful oversight by South Korea's central bank as the nation advances its digital asset framework.

The banks involved include KB Kookmin Bank, Shinhan Bank, Woori Bank, NH Nonghyup Bank, Industrial Bank of Korea (IBK), Suhyup Bank, and the Korean branches of Citibank and Standard Chartered. Their aim is to issue a won-based stablecoin backed by 1:1 reserves, providing a blockchain-based alternative to traditional fiat transfers for both domestic and cross-border use.

The consortium is working alongside the Open Blockchain and DID Alliance (OBADA) and the Korea Financial Telecommunications and Clearings Institute (KFTC) to develop the stablecoin system. The technical implementation will likely leverage public blockchain platforms such as Ethereum and Polygon, allowing interoperability with decentralized finance (DeFi) applications while maintaining institutional-grade compliance.

Each participating bank will be responsible for issuing and managing its own version of the KRW-backed token. These tokens are expected to operate within a trust-based (reputable bank) or deposit-token framework, meaning they are fully backed by fiat currency held in the bank's custody. The project is currently in the design and coordination phase, with pilot testing expected later in 2025.

Regulatory Oversight and Central Bank Involvement

South Korea’s central bank, the Bank of Korea (BoK), has not directly endorsed or partnered in the issuance of the private sector stablecoins but has taken an active role in shaping the regulatory environment. Senior officials have expressed support for a gradual and tightly regulated rollout of KRW-backed stablecoins, beginning with licensed banks and financial institutions.

BoK Senior Deputy Governor Ryoo Sang-dai emphasized that stablecoin issuance should be limited initially to banks under the oversight of the Financial Services Commission (FSC) and Financial Supervisory Service (FSS). This is aimed at ensuring consumer protection, financial stability, and proper integration with the nation’s broader monetary system.

Governor Rhee Chang-yong has also raised concerns about the potential risk of capital flight, warning that Korean users might convert won-based stablecoins into foreign currency-backed tokens, complicating monetary policy and foreign exchange controls. As such, the central bank is actively working on policy measures and infrastructure compatibility, including further pilots of its central bank digital currency (CBDC).

South Korean Banks Accelerate Stablecoin Trademark Filings

In parallel to the consortium’s technical efforts, several major South Korean financial institutions have moved to secure trademark rights related to stablecoin services, signaling a rapid escalation in preparations for launching won-backed digital currencies. According to the Korean Herald, KB Kookmin Bank, Hana Bank, and Kakao Bank all submitted trademark applications to the Korean Intellectual Property Office in the past week, reflecting growing institutional interest ahead of expected regulatory clarity.

KB Kookmin Bank led the effort with 32 applications, including names like “KBKRW” and “KRWKB,” covering categories such as cryptocurrency transfers and financial services. Hana Bank followed with 16 filings, including “HanaKRW” and “KRWHana,” while Kakao Bank, South Korea’s first internet-only bank to enter the stablecoin space, submitted 12 applications focused on digital asset services.

This wave of filings follows a similar move by Kakao Pay, the fintech arm of tech conglomerate Kakao, which filed 18 cryptocurrency-related trademarks the previous week. The activity illustrates a coordinated push by both traditional banks and digital platforms to establish early presence in the stablecoin ecosystem.

Notably, the trend extends beyond financial institutions. Nexus, a South Korean game developer, has introduced a won-denominated token called “KRWx” on the BNB Chain (Binance’s blockchain) and has also filed for a trademark within Korea, indicating broader interest from the private tech sector in stablecoin applications.

Legislative and Compliance Framework

The stablecoin initiative coincides with the upcoming implementation of the Digital Asset Basic Act, which introduces comprehensive rules for stablecoin issuance and operations in South Korea. Under the draft framework, issuers must hold a minimum of 500 million Korean won in capital and maintain full reserves for redemption. They must also comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.

This initiative represents one of the most significant collaborations between traditional financial institutions and blockchain infrastructure in South Korea. It signals a broader trend of regulated tokenized assets becoming part of the national financial ecosystem.

What Comes Next

The bank-led consortium will continue to coordinate with regulators and technology providers throughout 2025, with pilot testing expected before full-scale implementation. The outcome of these trials will shape how digital won-pegged stablecoins are used in everyday transactions, remittances, and institutional settlements in South Korea.

As South Korea positions itself at the forefront of regulated digital finance in Asia, this initiative reflects a pragmatic balance between innovation and oversight—bringing together established banking infrastructure and emerging blockchain networks.

WHAT WE ARE READING (OR WATCHING)

The Cryptography Frontier

Texas, the economic giant: second-largest U.S. state bets on Bitcoin with strategic reserve.

U.S. Regulator directs Fannie Mae and Freddie Mac to recognize crypto assets in mortgage assessments.

Mastercard joins Paxos’ Global Dollar Network, launches multi-stablecoin strategy with new partnerships.

Pioneering the future: Baillie Gifford launches the UK’s first fully tokenised fund.

South Korean bank consortium moves toward launching won-backed stablecoin.

Texas, the economic giant: second-largest U.S. state bets on Bitcoin with strategic reserve

U.S. Regulator directs Fannie Mae and Freddie Mac to recognize crypto assets in mortgage assessments

Mastercard joins Paxos’ Global Dollar Network, launches multi-stablecoin strategy with new partnerships

Pioneering the future: Baillie Gifford launches the UK’s first fully tokenised fund

South Korean bank consortium moves toward launching won-backed stablecoin

WHAT WE ARE READING (OR WATCHING)