Blockchain & Digital Assets Weekly Briefing - Week 27
- danae317
- Jul 4
- 12 min read
Updated: Sep 20
Week ending 4th July 2025
Crypto adoption accelerates as Robinhood brings tokenized U.S. assets to EU investors, Sparkassen plans Bitcoin and Ether trading in Germany by 2026, and Paxos launches USDG stablecoin in the EU. Meanwhile, Circle, Wise, and Erebor seek U.S. bank charters, and BlackRock’s Bitcoin ETF outpaces its S&P 500 fund, prompting institutional interest from UniCredit.
Robinhood introduces tokenized U.S. stocks and ETFs to EU investors.
Europe’s banking behemoth goes crypto: Sparkassen to roll out Bitcoin & Ether trading by 2026.
Paxos launches USDG in the EU, bringing a regulated Dollar stablecoin to international markets.
Circle, Wise, and Thiel-Backed Erebor pursue bank charters amid push for U.S. digital finance integration.
BlackRock’s Bitcoin ETF overtakes its S&P 500 fund in revenue, sparks institutional products from UniCredit.
Robinhood introduces tokenized U.S. stocks and ETFs to EU investors
June 30, 2025 – Robinhood has begun offering tokenized versions of more than 200 U.S.-listed stocks and ETFs to its European Union customers. These digital tokens, deployed through Arbitrum One—an Ethereum Layer-2 scaling solution—aim to replicate physical securities while delivering faster, more cost-effective and secure trading experiences.
Faster, Cheaper, and Secure Trading
The tokenized equities are fully backed 1:1 by underlying assets held by Robinhood and are available commission-free. EU clients can trade them around the clock, five days a week, unlocking flexibility beyond traditional market hours. This move leverages blockchain settlement for near-instantaneous trade execution and lower transaction costs.
Future Vision: Custom Layer-2 Blockchain
Looking ahead, Robinhood intends to launch its own tailored Ethereum Layer‑2 blockchain. Leveraging the Orbit stack—a framework originally developed by Arbitrum—this bespoke network will support proprietary token issuance and enable genuine 24/7 trading capability, further enhancing autonomy and efficiency.
Familiar App Experience, Powered by Blockchain
For European users, the purchase and sale of tokenized U.S. assets will retain the intuitive Robinhood app interface. Yet beneath this simplicity lies robust blockchain infrastructure, blending traditional brokerage convenience with blockchain's transparency and resilience.
Expanding Access: Private Company Tokens
A standout offering is the tokenization of shares in private firms like OpenAI and SpaceX. Historically accessible only through exclusive private placements, these shares will soon be tradable via tokens—a development enabled by EU regulatory frameworks and Robinhood's partnerships. This democratizes alternative investments previously limited to accredited investors.
Market Response & Competitive Context
Following the rollout, Robinhood’s U.S.-listed shares surged by 10–13%, marking an all-time high around $94.24—up over 150% year‑to‑date. Industry peers like Coinbase and Kraken have begun exploring similar tokenized offerings, signaling tokenization’s potential to reshape global investing.
Broader Digital Asset Strategy
Robinhood’s initiative forms part of a broader pivot toward digital asset services:
In the EU, the platform will introduce perpetual crypto futures (e.g., leveraged contracts without expiry).
In the U.S., Robinhood recently rolled out crypto staking options for Ethereum and Solana.
This suite of offerings underscores the firm's ambition to position blockchain and crypto as key components of its financial ecosystem.
Considerations and Outlook
While the model promises enhanced access, liquidity, and efficiency, it also raises concerns:
Regulatory clarity in the United States remains uncertain regarding tokenized securities.
Investor protections, such as voting rights and token-holder rights, differ from traditional shares—Robinhood retains voting control, and tokens confer dividend rights only.
Still, with plans to scale offerings to “thousands” of tokenized U.S. securities and its own blockchain by year-end, Robinhood aims to set a global standard for asset tokenization.
Europe’s banking behemoth goes crypto: Sparkassen to roll out Bitcoin & Ether trading by 2026
Germany’s Sparkassen-Finanzgruppe—Europe’s largest banking network, with over 520 member entities managing €2.5 trillion ($2.9 trillion) and serving around 50 million customers—is changing course: it will introduce Bitcoin and Ether trading within its core mobile banking apps by summer 2026.
A Strategic Reversal
After blocking crypto transactions entirely in 2015 due to volatility worries, Sparkassen is now preparing to launch regulated crypto trading services.
The move marks a full turnaround—from strong internal resistance to proactive exploration of crypto access for retail customers.
What’s Powering the Pivot: Demand Meets Regulation
Customer Interest: With roughly 10% of Sparkassen clients owning or interested in crypto, this represents around 5 million potential retail users.
Regulatory Confidence: The EU’s MiCA framework, active since December, offers a robust regulatory backbone for banks to manage custody and trading services legally and securely.
Who’s Leading the Charge
DekaBank’s Role: As the asset-management arm of the network, DekaBank will oversee the crypto feature, offering Bitcoin and Ether trading directly via the Sparkassen app by summer 2026.
Gradual Rollout: The network’s approach is decentralized—each of the 520+ Sparkassen will adopt services based on local board approval and interest.
Internal Balancing: Risk vs. Innovation
While some Sparkassen leaders still warn about risks and speculative nature, others see urgency in offering secure, neutral access—especially to younger, tech-savvy clients.
DekaBank already supports institutional clients with custody and trading services, marking a steady move towards a broader inclusion of retail users.
What It Means for Users & the Market
User Experience: Millions of Germans may soon trade Bitcoin and Ether directly alongside their savings, checking, and investment accounts—no need for external wallets or exchanges.
Market Impacts: Sparkassen’s move adds significant mainstream weight to crypto adoption, offering a trusted, regulated option. Other German banks—like DZ Bank and Landesbank Baden-Württemberg—have already begun institutional crypto offerings.
Quick Comparison: Pros & Cons
Challenges | Opportunities |
Crypto volatility & reputational risk | Regulated framework under MiCA |
Security & compliance overhead | Leverage trusted banking brand and existing user base |
No advisory allowed for products | Neutral, self-directed trading within built-in app infrastructure |
Decentralized adoption adds complexity | Scalability via DekaBank, tech subsidiaries, and partners |
Final Take
Sparkassen’s planned rollout by summer 2026 could redefine retail crypto access in Germany—bringing regulated Bitcoin and Ether trading to 50 million users through their everyday banking app. Given that German investors are known for being highly conservative and risk-averse, this marks an especially bold and symbolic step for the country’s financial sector.
As Europe’s largest banking group embraces digital assets, the move may not only accelerate adoption but also signal a major shift in how traditional finance engages with crypto across the continent.
Paxos launches USDG in the EU, bringing a regulated Dollar stablecoin to international markets
Paxos has launched USDG, a new regulated stablecoin now available across the European Union. Issued by Paxos Digital Singapore Pte. Ltd., USDG is designed to meet the world’s growing demand for a transparent, fully backed digital dollar, with compliance frameworks rooted in both the EU and Singapore.
USDG is the first major U.S. dollar-backed stablecoin launched under the EU’s Markets in Crypto-Assets (MiCA) regulation, which went into effect on June 30, 2025. The token is also regulated by the Finnish Financial Supervisory Authority (FIN-FSA) as part of MiCA passporting and is overseen by the Monetary Authority of Singapore (MAS), where the issuer is licensed.
“Our focus is always on giving clients better tools to navigate the crypto economy, and supporting USDG's expansion into Europe helps us connect more clients to the digital dollar economy” said Mark Greenberg, Global Head of Consumer at Kraken.
Meeting Growing European Demand
As Europe’s digital asset industry experiences rapid expansion, so does the need for trustworthy, dollar-backed stablecoins. USDG offers a regulated alternative to many existing stablecoins, which often operate without consistent legal clarity or reserve transparency.
The stablecoin is now accessible to European consumers and businesses through a wide range of trusted partners, including Kraken, Gate, Coinmetro, SwissBorg, Zodia Custody, Orbital, Hercle, CoinsPaid, Bitwyre, Bitnet, and HiFi. These partnerships are expected to drive significant adoption, enabling seamless access to USDG for payments, trading, custody, and blockchain-based applications.
Cross-Chain Availability
To support a wide range of use cases, USDG is already available on major blockchain networks including Ethereum, Solana, and Ink. This multi-chain support enhances accessibility and integration opportunities across DeFi, fintech platforms, and enterprise infrastructure.
Key Features of USDG:
Regulatory Compliance: USDG is one of the first stablecoins to launch under MiCA, ensuring adherence to the EU’s strict crypto asset requirements. It’s also licensed by MAS and supervised by FIN-FSA.
Full Asset Backing: Each USDG token is backed 1:1 by U.S. dollar reserves held in bankruptcy-remote accounts, including cash and cash equivalents.
Global Trust: By operating under internationally respected regulatory bodies, USDG offers users a high degree of transparency and legal protection.
Addressing Global Stablecoin Risks
According to Paxos, most of the stablecoins currently in use globally—such as USDT and USDC—are not fully regulated or fail to meet clear operational standards in the jurisdictions where they are most commonly used. This has raised concerns among regulators and users about potential risks related to reserves, governance, and systemic exposure.
USDG is designed to be a compliant, transparent alternative that meets the growing demand for digital dollars while reducing exposure to opaque or loosely regulated offerings.
Why Europe and Why Now?
With MiCA now in effect, the European Union has become the first major jurisdiction to enforce comprehensive regulation of stablecoins. Paxos has taken a first-mover position by launching USDG in full compliance with MiCA, enabling the stablecoin to be legally offered across all 27 EU member states.
Finland’s FIN-FSA serves as the home regulator under MiCA, allowing USDG to benefit from regulatory passporting across the bloc. At the same time, Paxos’ Singapore entity provides an Asia-Pacific regulatory foundation under MAS.
Looking Ahead
Paxos intends to continue expanding USDG’s reach globally by working with developers, businesses, and payment platforms that require regulated, dollar-denominated infrastructure. The company emphasizes that this new phase of stablecoin adoption must be built on safety, regulatory clarity, and full backing—principles Paxos has aligned with since its inception.
Circle, Wise, and Thiel-Backed Erebor pursue bank charters amid push for U.S. digital finance integration
Four high-profile initiatives—led by Circle, Wise, Erebor, and a newly revealed Palmer Luckey–backed bank—are pushing into federally regulated banking, signaling a broader industry transformation as fintech and tech entrepreneurs seek a more direct role in the U.S. financial system. These moves align with intensifying federal scrutiny, the anticipated GENIUS Act, and a shifting focus on regulatory clarity and infrastructure resilience.
1) CIRCLE: Preparing for Stablecoin Regulation
Circle, the issuer of USDC, one of the most widely used dollar-backed stablecoins, is seeking to establish First National Digital Currency Bank, N.A.. This federally regulated trust bank would be responsible for managing the USDC Reserve, enhancing transparency and compliance.
This move would give Circle the regulatory framework to directly manage the USDC Reserve on behalf of its U.S. affiliate, offering increased transparency and oversight in line with federal standards. Additionally, the institution would be positioned to provide digital asset custody services to institutional clients, further integrating traditional financial structures with digital asset management.
Strengthening Stablecoin Infrastructure
The USDC stablecoin is currently the world’s largest regulated payment stablecoin. Approval of this charter would bolster the infrastructure supporting its issuance and circulation, enhancing both its reliability and compliance within the broader U.S. financial ecosystem.
Jeremy Allaire, CEO and co-founder of Circle, emphasized the strategic nature of the application.
“By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure,” said Jeremy Allaire, Circle’s CEO. “We will align with emerging U.S. regulation… which we believe can enhance the reach and resilience of the U.S. dollar.”
Regulatory Alignment and Institutional Confidence
Circle's application comes at a time of increasing attention to stablecoins from U.S. policymakers and regulators. By pursuing a national trust charter, Circle aims to establish a more direct alignment with evolving U.S. regulatory frameworks, potentially setting a precedent for other digital currency issuers.
This initiative may also increase confidence among institutional investors and partners who seek clear regulatory oversight and robust risk management when interacting with digital assets. The establishment of a federally chartered trust bank would allow Circle to operate under consistent national standards, avoiding the complexities of state-by-state regulatory environments.
2) WISE: Expanding U.S. Presence With a National Trust Charter
Wise Plc, the London-based cross-border payments firm formerly known as TransferWise, filed its application with the OCC on June 16 to establish a national trust bank in the United States. The new entity would be based in Austin, Texas, where Wise already employs around 450 staff.
This step reflects Wise’s strategic pivot toward the U.S., as it also prepares to shift its primary share listing to American markets. According to the filing, the U.S. dollar is now Wise’s largest currency, representing nearly half of the firm’s total cross-border volume. With nearly 13 million global users, including 1.8 million in the U.S., Wise is positioning itself to operate more independently within the U.S. financial system by securing direct federal oversight.
The charter would allow Wise to safeguard customer funds under trust regulations, gain more efficient access to payments infrastructure, and reduce dependency on partner banks.
3) EREBOR: Peter Thiel-Backed Digital Lender Files for National Bank Charter
Erebor, a new digital bank backed by billionaire investor Peter Thiel, Stripe co-founder John Collison, and other prominent Silicon Valley investors, has filed an application with the OCC to establish a national bank. The initiative, first reported by Reuters and supported by a formal OCC filing, aims to fill the void left by the collapse of Silicon Valley Bank (SVB) in 2023.
Led by fintech veterans from Affirm and Goldman Sachs, Erebor is expected to offer specialized deposit and credit services tailored to startups and venture-backed businesses. The platform will reportedly leverage AI-driven underwriting, alternative credit models, and potentially digital asset infrastructure, combining innovation with full federal regulatory compliance from inception.
A Growing Trend Toward Charter-Based Fintech
The recent moves by Circle, Wise, and Erebor reflect a growing shift among fintech firms to secure federal charters that give them direct access to the U.S. banking system—whether for payments, stablecoins, or lending. Legislation like the GENIUS Act may soon make such charters essential for operating in key areas of digital finance.
Other firms are also joining this trend in various ways. Fiserv Inc. and Stripe Inc., for example, have pursued narrow bank charters in Georgia, giving them state-level operating authority while advancing toward greater financial independence. More recently Ripple has also filed an national bank charter application.
As regulation tightens and digital finance matures, these charter applications mark the next phase in fintech’s evolution: moving from disruptors to full-fledged, regulated financial institutions embedded in the core of the U.S. economy.
BlackRock’s Bitcoin ETF overtakes its S&P 500 fund in revenue, sparks institutional products from UniCredit
BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has swiftly become one of the asset manager’s most lucrative products—surpassing even its flagship S&P 500 tracker in revenue generation. Meanwhile, European banking giant UniCredit has launched a novel investment product tied to IBIT, offering institutional clients a capital‑protected route into cryptocurrency exposure. Here's a detailed overview of these major developments:
IBIT Outpaces BlackRock’s S&P 500 Fund in Fees
Despite managing around $75 billion in assets—significantly less than the $624 billion held by the S&P 500 ETF (IVV)—IBIT’s annual fee income has edged ahead. With a 0.25 % expense ratio, IBIT generates about $187.2 million per year, versus IVV’s $187.1 million, which carries a low 0.03 % fee.
IVV, which has been on the market for 25 years, remains a foundational product in BlackRock’s lineup and is the 3rd largest ETF in the U.S. (for a total of 4,300 products in the US), trailing only two other S&P 500 funds from Vanguard and State Street. Yet IBIT’s rapid ascent highlights a broader market shift. Since its inception, IBIT has demonstrated exceptional investor demand, drawing inflows in 17 of its past 18 months since its January 2024 debut—raising some $52 billion of the $54 billion total entering all spot Bitcoin ETFs. It also "holds more than 55% of all Bitcoin ETF assets" according to Bloomberg Intelligence.
Analysts highlight this as a landmark milestone: “IBIT overtaking IVV in annual fee revenue reflects both surging investor demand for Bitcoin and significant fee compression in core equity exposure,” Nate Geraci of NovaDius Wealth Management told Bloomberg.
UniCredit’s Structured Bitcoin Certificate
In a first-of-its-kind initiative in Italy according to Bloomberg, UniCredit SpA (Italy) will offer a five-year, U.S.-dollar-denominated certificate linked to IBIT, exclusively for professional clients, from July 1 to July 28.
This certificate features 100 % capital protection at maturity and provides up to 85 % of IBIT’s returns. The minimum investment is set at $25,000.
UniCredit underscores growing institutional interest in regulated crypto instruments and frames this move as their first tailored solution allowing Bitcoin exposure without direct risk.
Why These Moves Matter
Development | Importance |
Fee dominance | IBIT’s high revenue highlights investors’ willingness to pay premium fees for regulated Bitcoin exposure. It also signifies a shift in capital toward digital assets. |
Institutional access | UniCredit’s certificate spots a growing appetite among institutional investors for crypto tied financial instruments that offer risk controls. |
Market impact | IBIT’s success could influence Bitcoin’s volatility and correlation with traditional markets—Scholarly research has shown Bitcoin’s increasing integration with equity indices. |
Regulatory backdrop | The EU’s Markets in Crypto‑Assets (MiCA) regime, although evolving, has prompted banks to offer structured alternatives using U.S.‑based spot ETFs. |
Key Takeaways
IBIT has overtaken IVV in fee revenue, a notable achievement given its shorter track record and smaller AUM.
UniCredit’s launch offers a blueprint for traditional finance bridging to digital assets with risk mitigation.
Together, these trends signify that cryptocurrency ETFs are becoming mainstream financial tools, stepping beyond niche portfolios and into institutional asset allocations.
Final Thoughts
Momentum continues to build beyond asset managers and banks. Spot Bitcoin ETFs recently saw $408 million in net inflows in a single day (July 2nd), led by firms like Fidelity, Ark Invest, and Bitwise, reinforcing Bitcoin’s position as the primary digital asset of institutional choice. Meanwhile, Ethereum ETFs have lagged behind, reflecting a more cautious market stance on broader crypto adoption.
Interestingly, even corporate treasury departments are now favoring ETFs over direct crypto ownership. In a notable example, Figma, the design software firm, disclosed in its IPO filing that it holds $69.5 million in Bitcoin ETFs and plans to allocate an additional $30 million to cryptocurrency investments. This shift reflects a growing preference for regulated, liquid, and custodially simplified exposure to Bitcoin through ETFs—further embedding these products in both Wall Street portfolios and corporate balance sheets.
“It also illustrates the leadership of Bitcoin in the crypto space where it’s perceived utility as a store of value has essentially left the others in its dust.” commented Paul Hickey, co-founder of Bespoke Investment Group, according to a Bloomberg report.
WHAT WE ARE READING (OR WATCHING)
The Stablecoin Standard
China’s tech giants lobby for offshore renminbi stablecoin: sources
Japan's Minna Bank Explores Stablecoins on Solana in Fireblocks-Led Study
Noah x MiniPay: Real-World Stablecoin Payments
Governance Watch
BOK Halts Digital Currency Project As Stablecoins Gain Momentum
National Bank of Kazakhstan to Establish Cryptocurrency Reserve
US Senator Cynthia Lummis drafts standalone crypto tax bill
The Onboarding Wave
Crypto cards outpace banks in micro-spending in Europe: Report
Trump-Fueled Bitcoin Mania Leaves Most of Crypto in the Dust
The Nakamoto Engine
Tether and Adecoagro To Power Bitcoin Mining With Renewable Energy In Brazil
Crypto on the Balance Sheet
Amber International raises over a quarter of $100m goal to boost crypto holdings
This article is for informational purposes only and should not be considered financial advice. Please do your own research or consult a licensed financial advisor before making investment decisions.
