Blockchain & Digital Assets Weekly Briefing - Week 32
- danae317
- Aug 8
- 10 min read
Updated: Sep 20
Week ending 8th August 2025
Crypto is making waves across finance—from your 401(k) to your next remittance. A new U.S. order could put crypto in retirement plans. As yield dries up, stablecoins find fresh incentives post-GENIUS Act. Binance and Mastercard boost crypto-cash conversion in Europe, Ethena’s USDe rises fast, and Remitly taps USDC for global transfers.
Crypto in your 401(k)? new executive order aims to make it happen.
No yield? No problem: how stablecoins are reinventing incentives post-GENIUS Act.
Binance partners with Mastercard to let Europeans instantly convert crypto to cash (Euro).
Ethena’s USDe surges to 3rd largest stablecoin as Anchorage launches U.S. issuance platform.
Remitly launches USDC-powered wallet and payouts for global remittances.
Crypto in your 401(k)? new executive order aims to make it happen
Tapping Into a $9 Trillion Opportunity
The U.S. 401(k) market holds over $9 trillion in assets—yet most of it is still locked into traditional investments like mutual funds, bonds, and ETFs. That may soon change.
On August 7, 2025, President Donald Trump signed an Executive Order titled “Democratizing Access to Alternative Assets for 401(k) Investors,” setting in motion a plan that could open the door for cryptocurrencies to become part of mainstream retirement portfolios.
The order directs federal agencies to reevaluate current regulations that have largely kept alternative assets—including crypto—out of mainstream retirement vehicles.
What's Changing?
Under the directive, the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) have 180 days to review, update, and potentially remove restrictions that make it difficult for retirement plans to include crypto and similar non-traditional assets.
The key goals include:
Reviewing and possibly rescinding past guidance that discouraged fiduciaries from offering crypto in 401(k)s
Considering new safe-harbor rules to reduce legal risks for plan sponsors
Exploring ways to expand investor eligibility through SEC rule changes, possibly relaxing accredited investor thresholds for defined-contribution plans
Why Crypto? Why Now?
Supporters argue that crypto has matured, offering long-term growth opportunities and portfolio diversification beyond traditional stocks and bonds. Including digital assets in retirement plans would give everyday investors—especially younger savers—exposure to an asset class that has often only been available through self-directed IRAs or crypto-specific platforms.
The move aligns with broader industry trends: major firms like Fidelity and BlackRock have already rolled out crypto-linked 401(k) products in limited settings.
The Caution Tape
Still, critics highlight serious concerns:
Volatility: Crypto markets remain highly unstable, which could lead to major portfolio swings.
Fees & Complexity: Many crypto products carry higher fees and demand more technical knowledge.
Fiduciary Risk: Plan administrators may face legal challenges if these offerings are seen as unsuitable for average retirement savers.
What Happens Next?
The DOL and SEC will spend the next six months evaluating regulatory changes and likely propose new guidance or rulemaking by early 2026. That timeline leaves a window for public comment, potential legal pushback, and debate within the retirement industry.
Bottom Line
If enacted, this Executive Order could open the door for millions of Americans to allocate a portion of their 401(k) plans to cryptocurrencies—something previously limited to niche platforms or high-net-worth individuals.
Whether it's a bold evolution or a calculated risk, one thing’s clear: crypto is making its way from the fringe to the foundation of retirement investing.
No yield? No problem: how stablecoins are reinventing incentives post-GENIUS Act
The Law Is Clear—But the Loopholes Are Clever
With the signing of the GENIUS Act, the U.S. government has officially slammed the door on yield-bearing stablecoins. But in true crypto fashion, a new wave of innovation is already finding legal workarounds to keep users engaged—without violating the law.
At the center of this shift is a simple question: If you can’t offer interest on stablecoins, how else can you reward holders?
What the GENIUS Act Actually Does
The GENIUS Act is the most consequential U.S. crypto regulation to date. It gives fiat-backed stablecoins a legal framework—but with serious strings attached.
Key provisions:
Bans any form of interest or yield paid directly to holders of compliant stablecoins.
Requires full backing by cash or short-term U.S. Treasuries (under 93 days maturity).
Applies strict reserve segregation, GAAP attestations, and liquidity rules.
This isn’t just a compliance update—it’s a redefinition. Under GENIUS, stablecoins must function like pure payment instruments, not yield-generating assets. That kills a core feature that drove early DeFi adoption: passive income on stable digital dollars.
Enter the Workarounds: Points, Credits, and Platform Perks
Yet the market isn’t sitting still. Despite the GENIUS Act’s clear prohibition on yield-bearing stablecoins, the crypto industry has already begun adapting—crafting new incentive models that reward users without violating the law. One of the boldest examples so far: Liberty Financial’s USD1 stablecoin.
Launched in collaboration with Trump World, the USD1 project introduces a stablecoin that explicitly avoids offering yield, but still manages to incentivize holding behavior through a points-based loyalty system. Instead of earning interest, users receive “Liberty Points” simply for holding USD1 in a self-custodied wallet.
These points aren’t cash, but they’re far from meaningless. According to Liberty Financial and coverage from The Block, users will be able to redeem Liberty Points for Trump-branded merchandise, event access, and potentially even token-based perks within the broader Trump World ecosystem. That makes the program feel functionally similar to yield—even though it stays on the right side of regulation.
It’s an elegant workaround:
No monetary return = no violation of the GENIUS Act
Non-cash rewards = continued user engagement
Branded ecosystem = stronger retention and community buy-in
Even centralized exchanges are taking notice. Gate.io recently spotlighted the USD1 project on its official X account, underscoring how seriously platforms are treating this emerging model. The USD1 token is already attracting attention from traders and users looking for compliant but rewarding stablecoin alternatives.
This pivot marks a broader trend: “reward abstraction”. Instead of embedding returns directly into a stablecoin (which is now illegal), issuers are attaching externalized benefits—like loyalty points, credits, or access—to the act of holding. It’s not technically yield, but it achieves the same end: encouraging users to stick with a particular stablecoin.
Likewise, platforms like Coinbase and PayPal are experimenting with internal balance credits. While not yield in name, these systems reward user behavior in a way that keeps users sticky—without directly paying out returns.
The core trick: because these benefits aren’t technically interest and can’t be cashed out as money, they stay within the legal guardrails. It’s financial engineering with a regulatory twist.
Why This Matters
Innovation Under Pressure. The GENIUS Act has sparked a new arms race: building incentives that walk the regulatory tightrope. Rewards systems are being redesigned to offer value without crossing legal lines.
The End of Passive Yield Illusions. DeFi protocols must now generate yield from real, auditable strategies—not by embedding interest into stablecoins. This could lead to smarter, more transparent systems.
The Great Unbundling of Yield. The reward and the stablecoin are no longer one and the same. Yield must now exist outside the stablecoin itself—via liquidity pools, staking derivatives, or reward points—marking a fundamental shift in DeFi design.
A Healthier Future for DeFi?
Ironically, the ban on yield might end up strengthening DeFi. Without shortcuts, protocols are now challenged to build resilient, delta-neutral, and transparent yield strategies. Risk engines will matter more than hype, and the winners will be those who can prove exactly how their yields are created and sustained.
Meanwhile, regulatory clarity will attract more institutional capital, as compliant stablecoins become more deeply integrated into U.S. Treasury markets—though that alignment also exposes DeFi to new types of systemic risk, like rate shocks or liquidity crunches.
Binance partners with Mastercard to let Europeans instantly convert crypto to cash (Euro)
Streamlined Crypto-to-Fiat Access for Europe
Binance has unveiled a new “Buy & Sell” service—powered by Mastercard Move—that allows users in the EEA and UK to convert crypto into euros or withdraw existing euro balances directly to their Mastercard debit or credit cards in near–real time.
There are two convenient options:
Sell to Card: Convert cryptocurrency (e.g., Bitcoin, Ethereum) into euros and transfer them directly to a linked Mastercard.
Withdraw to Card: Move existing euro balances from Binance to a Mastercard—no conversion required.
Both options offer the advantage of speed—sidestepping delays inherent in traditional bank transfers but are currently limited to euro-based payouts, with more currencies expected to be added soon.
Why It Matters
These features mark a significant leap in bridging the gap between digital assets and everyday financial tools:
Speed & Convenience: Instant payouts mean users can access fiat quickly—perfect for daily spending or spontaneous needs.
User-Centric Strategy: Thomas Gregory, Binance’s VP of Fiat, highlighted that this launch reflects the platform’s ongoing focus on enhancing user experience for its ~300 million users.
Deeper Integration: Mastercard’s Scott Abrahams underscored that the collaboration aims to unlock crypto’s real-world usability, allowing customers seamless access to funds.
Closer Crypto–Fiat Alignment: This move shows growing alignment between major crypto platforms and legacy financial providers, reinforcing mainstream access to digital assets.
Final Take
For European users of Binance, converting crypto into cash just got faster, simpler, and more intuitive. Whether cashing out crypto directly or withdrawing existing euro balances, the new card options make fiat access nearly instantaneous. This is a concrete step toward making digital assets more functional for everyday use—right where you spend.
Ethena’s USDe surges to 3rd largest stablecoin as Anchorage launches U.S. issuance platform
Ethena Labs’ USDe stablecoin has made a striking leap in the digital asset space, recently becoming the third-largest dollar-backed stablecoin by market capitalization. This milestone coincides with Anchorage Digital’s introduction of a new stablecoin issuance platform aimed at institutional players, highlighting growing momentum around regulated stablecoins in the United States.
USDe’s Rapid Rise
USDe’s market capitalization soared by 75% in just three weeks, reaching approximately $9.3 billion as of early August 2025. This jump propelled it past FDUSD and established USDe as a key player behind only Tether’s USDT ($164 billion) and Circle’s USDC ($63 billion). Alongside market cap growth, Ethena’s total value locked (TVL) surged to nearly $10 billion, ranking its protocol seventh among decentralized finance platforms.
A significant driver of this growth is USDe’s appeal as a yield-bearing stablecoin, offering holders an attractive annual percentage yield (APY) between 10% and 19%. This competitive return attracts investors seeking better yields compared to traditional U.S. Treasury rates, which currently lag behind decentralized finance offerings.
Anchorage Digital’s Stablecoin Issuance Platform
Anchorage Digital, the parent company of Anchorage Digital Bank—the only crypto firm with a national trust charter regulated by the U.S. Office of the Comptroller of the Currency (OCC)—recently launched a stablecoin issuance platform. Its first client is Ethena Labs, which will issue USDtb (a close sibling to USDe) onshore through Anchorage’s federally regulated infrastructure.
This move follows the passage of the GENIUS Act, a landmark U.S. law expanding OCC oversight to include nonbank stablecoin issuers, providing clearer regulatory pathways for institutions. Anchorage’s CEO, Nathan McCauley, noted that this legal clarity enables federally regulated firms like Anchorage to fully engage in the stablecoin ecosystem.
A Different Stablecoin Model
Unlike earlier algorithmic stablecoins such as Terra’s UST, USDe is fully backed by crypto collateral—including Bitcoin and major stablecoins like USDT—and employs hedging strategies to maintain its dollar peg. Although it faced skepticism early on due to yield volatility, Ethena has since expanded liquidity partnerships and implemented third-party attestations to bolster trust.
Stablecoins in a Growing Market
The overall market for dollar-pegged stablecoins has expanded steadily, with total supply climbing from $200 billion in January 2025 to nearly $257 billion in August. Institutional interest, regulatory clarity, and innovative offerings like USDe and Anchorage’s platform signal a new chapter for stablecoins as they bridge traditional finance and decentralized ecosystems.
Remitly launches USDC-powered wallet and payouts for global remittances
Remitly is gearing up to transform international remittances by integrating stablecoins into its core operations. This bold move promises to enhance speed, cost-efficiency, and reliability for users worldwide.
a. Launching Remitly Wallet: Fiat Meets Stablecoin
Remitly is set to launch its Remitly Wallet, a multi-currency digital wallet that supports both traditional fiat and stablecoins. Currently in beta, the wallet is scheduled to go live in September 2025. It’s designed to help users—especially in countries with unstable local currencies—store value more securely in dollar-pegged tokens.
b. Stablecoin Disbursements via Bridge Partnership
In collaboration with Bridge, a stablecoin infrastructure arm of Stripe, Remitly will enable recipients in selected markets to receive funds directly in stablecoins. This enhancement will leverage Remitly’s existing fiat rails to offer more flexibility in how funds are delivered.
c. Internal Treasury Revolution: Tokenized Liquidity
Internally, Remitly is adopting USDC for its treasury functions. By tokenizing portions of its U.S. dollar reserves, the company aims to facilitate real-time, 24/7 liquidity movement across time zones. This reduces reliance on pre-funded local pools and frees up capital for more efficient use.
Why It Matters
Improved transfer economics: Global remittance fees average around 6.26%, according to the World Bank. Stablecoins present a more affordable option, particularly in regions with weak banking systems.
Value preservation: Users—freelancers, diaspora communities, and small businesses—stand to benefit from holding value in stablecoins amid volatile local currencies.
Bridging traditional finance with Web3: By layering blockchain-based tools atop its trusted fiat infrastructure, Remitly is blending innovation with regulatory compliance and global reach.
Remitly’s stablecoin rollout signals a shift toward a future where traditional remittance services embrace digital asset capabilities. With three high-impact initiatives—Remitly Wallet, stablecoin payouts via Bridge, and tokenized treasury operations—Remitly is not just joining the stablecoin wave—it’s helping steer it. The rollout, starting September 2025, sets a new benchmark for speed, flexibility, and financial inclusion in cross-border payments.
WHAT WE ARE READING (OR WATCHING)
The Stablecoin Standard
Bolivia: In Land of 25% Inflation, Crypto Is Starting to Replace Money
Hong Kong stablecoin bill's client identity rules spark industry concern
Trump Momentum Drives Stablecoin Urgency in Asian Financial Hubs
Clearpool, DeFi lending platform, introduces new stablecoin tokens
Governance Watch
SEC Exempts Liquid Staking Giants Lido and Jito From Securities Laws
Trump to nominate economic advisor Stephen Miran to be new Fed governor, replacing Kugler
The Onboarding Wave
Private-Asset Boom Cools as Hedge Funds, Crypto Nab New Billions
On the Launchpad
SBI Files for Bitcoin–XRP ETF in Japan, Pushing Dual Crypto Exposure Into Regulated Markets
Crypto on the Balance Sheet
Michael Saylor’s Strategy Makes Its Third-Largest Bitcoin Purchase Ever
Crypto’s $25 Billion Spree Sparks Unease Even Among Insiders
Beyond the Chain
Coinbase Drags Britain in Viral Ad as Two Former Chancellors Warn UK Is Falling Behind in Crypto
Tether Acquires Minority Stake in Bit2Me and Leads €30 Million Funding Round
Venture Capitalists Are Funding a New Wave of Crypto Mania on College Campuses
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.
