Blockchain & Digital Assets Weekly Briefing - Week 29

Week ending 18th July 2025

Crypto is entering a pivotal moment, with regulation, institutional adoption, and infrastructure growth accelerating. The U.S. House just passed the GENIUS Act to regulate stablecoins, while a new survey shows over half of institutions plan 5%+ crypto allocations in 2025. Cantor Fitzgerald is launching a Bitcoin venture with cryptographer Adam Back, Tether is streamlining USDT support, and Zerohash nears unicorn status with a $100M raise led by Interactive Brokers.

1. U.S. House passes landmark GENIUS Act to regulate stablecoins.

2. Over half of institutions plan 5%+ crypto allocation in 2025, new EY-Parthenon & Coinbase survey finds.

3. Cantor Fitzgerald collaborates with cryptographer Adam Back on new Bitcoin treasury venture.

4. Tether sharpens focus on Ethereum and Tron, phasing out USDT support on 5 legacy blockchains.

5. Zerohash nears unicorn valuation with $100M round led by Interactive Brokers.

---

1. U.S. House passes landmark GENIUS Act to regulate stablecoins

On July 17, 2025, the U.S. House of Representatives approved the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), a historic bill setting federal rules for stablecoins—digital assets pegged 1:1 to the U.S. dollar.

Key Provisions of the GENIUS Act

• Requires issuers to hold U.S. dollars or short-term Treasury securities for every token issued.

• Mandates transparent monthly reporting on reserve assets.

• Establishes a dual-state and federal oversight framework to strengthen consumer safeguards.

Legislative Journey and Procedural Challenges

The bill passed the Senate 68–30 on June 17, following extensive negotiations over disclosure and financial stability measures. In the House, initial debate in “Crypto Week” faced delays when a faction of conservative Republicans blocked procedural votes, seeking to attach broader crypto reforms. After reaching an agreement—decoupling the GENIUS Act from proposals targeting central bank digital currencies—the bill finally moved forward and passed 308–122, with bipartisan support from 206 Republicans and 102 Democrats.

Broader Crypto Legislative Package

Alongside the GENIUS Act, the House advanced two additional bills:

1. The Clarity Act, clarifying whether a crypto asset is a security or a commodity, delineating SEC and CFTC jurisdiction.

2. The Anti-CBDC Surveillance State Act, aiming to prevent a consumer-facing central bank digital currency from being issued by the Federal Reserve.

Both pieces still await Senate review and approval.

Supporting Perspectives

Proponents argue the GENIUS Act provides critical infrastructure for safe, efficient digital dollar payments, positioning the U.S. as a global leader in fintech. Supporters include senior Republican figures like Rep. French Hill and Sen. Bill Hagerty, along with Democratic backers such as Sens. Kirsten Gillibrand and Tim Scott.

Market Response and Outlook

The stablecoin sector—valued at roughly $250 billion—responded positively. MarketWatch noted that institutions such as JPMorgan, Bank of America and Citigroup are preparing to issue their own stablecoins under the new legal framework. Industry analysts suggest that, absent FDIC protections, further fine-tuning may be necessary to fully secure investor confidence.

With House approval secured, the GENIUS Act awaits President Trump’s signature, a move expected soon. Its passage would mark the nation’s first comprehensive federal stablecoin regulation, introducing standardized industry rules and renewed regulatory clarity.

What Comes Next?

• Presidential Signature: The bill heads to Trump’s desk.

• Senate Review: The Clarity Act and Anti‑CBDC bill still need Senate passage.

• Regulatory Roll-out: Treasury and financial regulators will issue implementation rules.

The GENIUS Act represents a milestone: for the first time, Congress is regulating stablecoins, blending technological innovation with financial oversight. Whether its guardrails prove robust will depend on forthcoming guidelines and regulatory enforcement.

2. Over half of institutions plan 5%+ crypto allocation in 2025, new EY-Parthenon & Coinbase survey finds

In a comprehensive January 2025 survey of 352 global institutional investors, Coinbase and EY‑Parthenon unveil accelerating momentum in digital asset adoption across portfolios. The findings reflect growing conviction across key asset classes such as stablecoins, tokenized assets, altcoins, and decentralized finance (DeFi).

Asset Allocations Climb

• 83% of surveyed institutions intend to increase crypto allocations in 2025, citing its superior potential for risk-adjusted returns over the coming three years.

• A notable 59% plan to dedicate more than 5% of assets under management (AUM) to crypto-related investments—a sharp rise from traditional allocations of circa 2–3%.

Stablecoins: Beyond Simple Transactions

• 84% of institutions either use or are exploring stablecoins.

• They’re utilizing these instruments not just for trading, but for yield generation (≈ 73%), foreign exchange, internal cash management, and external payments.

Altcoins Gaining Selective Traction

• 73% of respondents currently hold altcoins beyond Bitcoin and Ethereum.

• XRP and Solana lead as preferred picks, with 68% expressing interest in purchasing altcoin-based exchange-traded products (ETPs).

DeFi Transition: From Niche to Norm

• Institutional engagement in DeFi, now at just 24%, is expected to grow to approximately 75% within the next two years.

• Anticipated use cases include derivatives, staking, lending, cross-border payments, and yield farming.

Tokenization: Democratizing Traditional Assets

• 57% of institutions are actively interested in tokenized real-world assets (e.g., bonds, real estate), and complementary technologies attracting another 35%.

• Among EU/UK institutions, 69% plan to invest in tokenized products by 2026, often favoring tokenized commodities more than their U.S. counterparts.

Persistent Concerns: Regulation, Volatility, and Custody

• Regulatory uncertainty tops the list of institutional anxieties (52%), followed by market volatility (47%) and custody risks (33%).

• However, 68% view increased regulatory clarity as the primary catalyst for broader adoption.

Macro View

Institutional interest in crypto is no longer experimental. Digital assets are being treated as a core component of diversified portfolios, with a widespread expectation that mature regulation—like the EU’s MiCA and developing U.S. frameworks—will underpin future growth.

Infrastructure enhancements (lower transaction fees, faster settlement) combined with product evolution (ETPs, tokenized assets, DeFi protocols) bolster confidence. Still, financial market volatility and evolving regulation remain watchpoints into late 2025 and beyond.

Disclaimer: This article aims for clarity and neutrality, relying exclusively on the Coinbase–EY‑Parthenon survey and related reputable coverage.

3. Cantor Fitzgerald collaborates with cryptographer Adam Back on new Bitcoin treasury venture

Cantor Fitzgerald, the renowned financial services firm, is preparing to launch its second Bitcoin treasury company, according to a Bloomberg report. The initiative, in partnership with crypto pioneer Adam Back, aims to transfer roughly 25,000 BTC—worth about $3 billion at current market prices—into a newly established publicly traded vehicle managed by Blockstream Corp., the blockchain infrastructure firm co-founded by Back.

What’s New with This Venture?

• Second SPAC-backed Bitcoin treasury. Cantor is replicating its previous strategy—via its first special purpose acquisition company (SPAC)—by building another public entity specifically for Bitcoin accumulation. This move comes hot on the heels of a $3.6 billion program Cantor formed earlier in conjunction with SoftBank and Tether.

• Partnership with Adam Back & Blockstream. Adam Back, a foundational figure in cryptography and CEO of Blockstream, is at the center of the plan. The deal involves Blockstream contributing the Bitcoin stake in exchange for equity in the new treasury entity.

• Scale of the investment. With 25,000 BTC being allocated, the new company—likely to be renamed under Cantor’s “BSTR” branding—will inherit a substantial Bitcoin portfolio worth approximately $3 billion.

Strategic Outlook

1. Growing Cantor’s influence in crypto markets. This is part of Cantor’s broader ambition to hold nearly $10 billion in Bitcoin by the end of 2025, distributed across multiple treasury vehicles.

2. Capitalizing on Bitcoin momentum. With BTC surpassing $120,000 recently and gaining over 26% year-to-date, institutional demand is surging. Cantor’s model taps into this momentum by turning BTC holdings into liquid, investable companies.

3. Expanding beyond Bitcoin holdings. Much like the first SPAC venture, the new entity may also offer advisory services, portfolio management, and strategic consulting around Bitcoin, potentially creating broader revenue streams for investors.

Industry Context

• A trend toward Bitcoin treasuries. Following the lead of Michael Saylor’s MicroStrategy (now Strategy), other companies like Twenty One and Bitcoin Standard are pursuing similar treasury-heavy strategies through SPAC deals.

• Regulatory backdrop. The regulatory landscape is becoming more favorable for digital asset adoption, particularly following the recent passage of the GENIUS Act, which now awaits President Trump’s signature. While the act focuses specifically on providing legal clarity for stablecoins, it signals broader governmental engagement with digital finance. Although it does not directly regulate Bitcoin, the act’s passage is seen as a positive step toward more structured oversight of the crypto space, potentially encouraging institutional participation and fostering confidence in related ventures like Bitcoin treasury companies.

What This Means Going Forward

• Public listing expected Q4 2025. Cantor’s second SPAC-related vehicle should be ready to go public by late 2025, reminiscent of its prior $3.6 billion deal.

• Market implications. Once active, the firm will rank among the top corporate holders of Bitcoin, enhancing liquidity and visibility for enterprise Bitcoin exposure.

4. Tether sharpens focus on Ethereum and Tron, phasing out USDT support on 5 legacy blockchains

Tether, the company behind the widely used USD₮ stablecoin, has announced it will end support for five legacy blockchains by September 1, 2025. This decision reinforces Tether’s strategic focus on Ethereum and Tron—the two networks that currently handle the vast majority of USDT transactions and user activity.

Why Ethereum and Tron?

Ethereum and Tron have emerged as the most actively used platforms for USDT, together accounting for over 99% of the stablecoin’s total supply. These networks offer broad developer support, strong infrastructure, and high liquidity, making them ideal for sustaining and scaling Tether’s operations.

By contrast, the five networks being phased out—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—have shown limited adoption and declining usage over time. Some, like Omni, were foundational in USDT’s early history but have since fallen out of favor in the broader crypto ecosystem.

What’s Changing?

Affected Blockchains	Status Before	Final Deadline
Omni Layer	Minting paused (2023)	Redemptions end Sept 1, 2025
Bitcoin Cash SLP	Minting paused (2023)	Redemptions end Sept 1, 2025
Kusama	Minting paused (2023)	Redemptions end Sept 1, 2025
EOS	Active	Redemptions end Sept 1, 2025
Algorand	Active	Redemptions end Sept 1, 2025

Tether had already stopped minting new tokens on Omni, Kusama, and Bitcoin Cash in August 2023. With this latest move, it will also freeze all remaining balances on these networks starting in September 2025. After that point, USDT on those blockchains will no longer be redeemable or transferable.

What Should Users Do?

Users holding USDT on the affected blockchains are encouraged to transfer their tokens to Ethereum, Tron, or another supported platform before the cutoff date. Tether customers can request chain swaps directly through the company, while others may need to rely on third-party services.

Strategic Rationale

This consolidation effort allows Tether to streamline operations, reduce security risks, and allocate resources more efficiently. The company also emphasized its commitment to newer, scalable solutions such as Layer 2 networks (e.g., Lightning) to future-proof the usability of USDT.

In their statement, Tether noted that platform support is driven by user demand, developer activity, and technical potential—not brand loyalty or historical significance.

5. Zerohash nears unicorn valuation with $100M round led by Interactive Brokers

Zerohash, an infrastructure provider for cryptocurrency and stablecoins, is on the verge of securing approximately $100 million in a new funding round, according to a Fortune Crypto report. This latest capital injection, led by Interactive Brokers, aims to elevate the company’s valuation close to $1 billion, marking a significant milestone for the seven‑year‑old startup.

Background & Growth Path

• Founded in 2017, Zerohash (formerly Zero Hash) offers backend services that enable banks, brokerages, and fintech firms to provide customers with crypto, NFTs, and tokenized financial products.

• In 2022, Zerohash raised $105 million in its Series D round—backed by Bain Capital, Point72 Ventures, and Nyca Partners—which pegged its valuation at around $340 million.

Strategic Partnerships & Use of Funds

• The new funding round, possibly another Series D or an extension of the previous one, is spearheaded by Interactive Brokers. Both Zerohash and Interactive Brokers have not publicly commented.

• Zerohash’s growth has been fueled through key collaborations:

  • Stripe integrated its fiat-to-crypto gateway in 2022.

  • In 2024, a partnership with Securitize enabled institutions to convert USDC to USD through its tokenization tools.

Stablecoin Landscape & Industry Trends

• The crypto ecosystem's interest in stablecoins is surging, propelled by high-profile deals such as Stripe’s acquisition of Bridge and Circle's successful IPO.

• Unlike asset issuers like Agora, Zerohash supports issuers and holders by building the plumbing that connects cash systems to stablecoins. This infrastructure is seeing growing demand as banks and fintechs seek to adopt digital asset services.

• Renewed regulatory discussions—such as the U.S. Senate bill on crypto—alongside interest from major corporations like Walmart and Amazon, are fueling momentum in the sector.

Why It Matters

1. Valuation Leap: Achieving close to a $1 billion valuation underscores recognition of Zerohash's pivotal role in crypto infrastructure.

2. Institutional Validation: Interactive Brokers’ leadership in this round signals that mainstream financial institutions are increasingly embracing crypto‑focused infrastructure.

3. Sector Momentum: The demand for stablecoin rails and tokenized asset systems is rising rapidly, with regulatory frameworks maturing and strong venture‑capital backing.

Outlook for Zerohash

With enhanced financial resources, Zerohash is expected to:

• Strengthen its stablecoin and tokenized asset pipelines, facilitating smoother transactions and integration.

• Scale partnerships with traditional financial players, aiming for broader adoption of embedded crypto services.

• Advance regulatory compliance and risk management, positioning itself as a trusted infrastructure provider as digital assets enter regulated financial ecosystems.

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.