Blockchain & Digital Assets Weekly Briefing - Week 34
- danae317
- Aug 22
- 14 min read
Updated: Sep 20
Week ending 22nd August 2025
This week in digital assets: Brazil holds its first hearing on a proposed National Bitcoin Reserve, exploring the allocation of $19B in Bitcoin as part of its strategic reserves. Bullish makes U.S. IPO history with a $1.15B stablecoin settlement, while Singapore’s DBS launches tokenized crypto notes on Ethereum. Buenos Aires enables municipal tax payments in crypto, and TRM Labs, with major exchanges, launches the Beacon Network to combat blockchain-based financial crime. Beyond the brief, we explore voting power at the Fed and how the U.S. GENIUS Act is driving EU and China stablecoin moves, highlighting policy shifts that could reshape the global digital asset landscape.
Brazil to hold first hearing on National Bitcoin Reserve proposal.
Stablecoin settlement makes IPO history: Bullish raises $1.15 B on the blockchain.
Singapore’s largest bank puts tokenized crypto notes on Ethereum.
Buenos Aires embraces crypto: a bold step toward digital taxation.
Major crypto players unite with TRM Labs to launch Beacon Network against financial crime.
Beyond the Brief
Brazil to hold first hearing on National Bitcoin Reserve proposal
Brazil's Strategic Bitcoin Reserve Takes Center Stage
Brazil’s Chamber of Deputies held its first-ever public hearing on August 20, 2025, to debate a groundbreaking proposal: the creation of a sovereign Bitcoin reserve. Lawmakers evaluated the feasibility and implications of allocating up to roughly $19 billion in Bitcoin as part of the nation’s strategic reserves. The landmark discussion comes on the heels of the U.S. government’s sweeping crypto policy moves—effectively validating sovereign Bitcoin reserves and giving Brazil’s initiative added global relevance.
What’s on the Agenda?
The Proposal: Embedded in Bill 4501/2024, the initiative suggests Brazil could dedicate up to 5% of its international reserves to Bitcoin, positioning the asset as a hedge against currency volatility and geopolitical uncertainty.
Oversight and Accountability: Management of this Bitcoin reserve would fall under the purview of the Central Bank of Brazil and the Ministry of Finance, with required biannual reports on performance and risk.
Who’s Speaking, and Why It Matters
Proponents: Deputy Luiz Philippe de Orleans e Bragança requested the hearing to ensure expert analysis guides the legislative process. The legislation was introduced by Deputy Eros Biondini, who highlights global blockchain trends—from El Salvador to the EU—as motivations for Brazil to modernize its treasury strategy.
Expert Voices: Confirmed speakers include:
Diego Kolling, Head of Bitcoin Strategy at Méliuz.
Julia Rosim, Policy Coordinator at ABcripto (and Head of Public Policy at Bitso).
Rubens Sardenberg from FEBRABAN.
Potential contributions from the Central Bank, Ministry of Finance, and other government bodies.
Legislative Path Ahead
The hearing ushers in the first stage of a thorough review process:
Economic Development Commission hosts the hearing.
Four additional committees—Science, Technology & Innovation; Finance & Taxation; Constitution, Justice & Citizenship; and Economic Development—will review the bill.
If passed, it moves to the full Chamber of Deputies, then to the Senate, and finally, potentially, to the President’s desk.
Context & Implications
Crypto Adoption Momentum: Brazil ranks 10th globally and leads Latin America in crypto adoption, having processed nearly 60 billion digital asset transactions in 2024.
Global Trendsetter?: If enacted, Brazil would join a small cohort of nations exploring Bitcoin as a monetary reserve. Advocates tout Bitcoin as "digital gold" —a shield against economic instability.
Balanced Outlook
Support: Proponents argue the measure could diversify Brazil’s reserves, strengthen financial resilience, and reinforce its image as a forward-thinking digital economy.
Skepticism: Critics, including figures from the Central Bank, caution about Bitcoin’s volatility and suitability as a stable national asset.
Safeguards: The bill includes provisions for cold-storage security protocols and accountability measures (including legal penalties for mismanagement) to address transparency and operational risks.
Why It Matters
This hearing represents a potential turning point—not only for Brazil’s financial policy but also for how major emerging economies approach digital assets. As Latin America’s largest economy and one of the world’s top ten by GDP, Brazil’s decision carries outsized influence across the region. The recent creation of a Strategic Bitcoin Reserve in the United States effectively serves as a global validator of the idea, giving Brazil’s initiative added legitimacy. Should the proposal advance, it could set the stage for other nations in Latin America and beyond to explore similar reserve strategies.
Stablecoin settlement makes IPO history: Bullish raises $1.15 B on the blockchain
In a landmark debut for U.S. public markets, crypto exchange Bullish has redefined capital raising norms by settling its entire $1.15 billion IPO using stablecoins, not traditional fiat. This deviation from the status quo signals a significant step in the integration of blockchain technologies into mainstream finance.
Historic First for U.S. IPOs
Bullish's IPO—completed in mid-August 2025—marked the first-ever U.S. public listing fully funded through cryptocurrency. The bulk of the proceeds were minted on the Solana blockchain and primarily issued in USDC, Circle's U.S. dollar-pegged stablecoin. Custody services were exclusively handled by Coinbase.
A Diverse Stablecoin Basket
Beyond USDC, Bullish accepted a broad mix of dollar- and euro-pegged tokens. The offering included Circle’s EURC, PayPal’s PYUSD, Ripple’s RLUSD (on the XRP Ledger), Paxos’ USDG, Societe Générale’s USDCV and EURCV, as well as stablecoins from World Liberty Financial (USD1), Agora (AUSD), and AllUnity (EURAU). Investment bank Jefferies managed the minting, conversion, and delivery of all these assets.
Why Blockchain Settlement Matters
By leveraging stablecoins and blockchain rails, Bullish achieved faster fund clearance, enhanced transparency, and reduced settlement friction. Solana’s high throughput and low fees were critical in enabling rapid execution of such a large-scale transaction.
Broader Market Implications
This event underscores stablecoins’ evolving role—not just in DeFi or trading, but as legitimate instruments in traditional finance. The passage of the U.S. GENIUS Act this summer further legitimises stablecoin usage through a clear regulatory framework, fueling confidence in their adoption for institutional purposes.
Charting the New Capital Markets Frontier
Bullish’s IPO is a vivid demonstration of how digital currencies and blockchain infrastructure are reshaping the landscape of capital formation. As regulatory clarity improves and technology matures, we may see more listings embracing stablecoin settlement, setting a new standard for efficiency and innovation in financial markets.
Singapore’s largest bank puts tokenized crypto notes on Ethereum
On August 21, 2025, DBS unveiled a milestone in its digital asset strategy: tokenizing structured notes on the public Ethereum blockchain, now accessible to eligible, non-DBS clients through digital platforms ADDX, DigiFT, and HydraX.
Bringing Complex Products to a Broader Investor Base
Traditionally, structured notes require large capital—often $100,000—and are customized to individual clients, making them illiquid and exclusive. DBS has changed the game: each note is now divided into fungible $1,000 tokens, making them tradable, flexible, and easier to manage.
Crypto-Linked Notes: Access Without Holding Crypto Directly
The initial offering includes cash-settled, crypto-linked participation notes. These allow investors to benefit when cryptocurrency prices rise and incorporate mechanisms to soften potential losses—without requiring direct ownership of crypto.
Strong Demand Validates Approach
DBS’s clients traded over $1 billion worth of crypto options and structured notes in the first half of 2025, with volumes increasing nearly 60% from Q1 to Q2.
Singapore’s Growing Wealth Ecosystem
This move aligns with Singapore's evolution as a wealth hub. By 2024, the city-state hosted over 2,000 single-family offices—up 43% from the previous year—highlighting the rising demand for sophisticated, accessible financial instruments.
Future Plans: Beyond Crypto
DBS intends to extend tokenization to other types of structured notes, including equity- and credit-linked instruments—broadening the scope of this innovation in tokenized finance.
Why Ethereum? A Strategic Infrastructure Choice
Issuing these notes on Ethereum brings them onto a mature, widely supported public blockchain. This leverages deep liquidity, robust development tools, and the broader blockchain ecosystem—a strategic advantage over closed ledgers.
Regulatory and Institutional Foundations
The rollout aligns with Singapore’s blockchain innovation initiatives, such as Project Guardian, where MAS-led trials standardize tokenized financial product issuance. DBS has been a key participant in these efforts.
Why It Matters
Reduced Barriers: High-net-worth-only structured notes are now accessible in smaller, fungible units ($1,000), inviting broader participation.
Enhanced Flexibility: Tokenization simplifies trading and portfolio management, especially amid volatile markets.
Balanced Exposure: Crypto-linked structured notes offer upside participation while mitigating downside risk—without the need to hold crypto directly.
Strategic Momentum: DBS’s Ethereum-based rollout suggests institutional confidence in public blockchains for regulated financial products.
Growth Outlook: With plans to tokenize equity- and credit-linked instruments, tokenization is set to become mainstream in structured finance.
Buenos Aires embraces crypto: a bold step toward digital taxation
Buenos Aires has introduced a groundbreaking initiative, "BA Cripto", enabling residents and businesses to pay local taxes and administrative fees using cryptocurrencies. This move positions the city as a potential leader in the global adoption of digital currencies.
Key Features of BA Cripto:
Tax Payments: Citizens can now settle municipal taxes, including property tax (ABL), vehicle tax (Patentes), and turnover tax (Ingresos Brutos), using cryptocurrencies. Additionally, non-tax services such as driver's licenses and traffic fines are payable through this system.
QR Code System: The payment process is facilitated through a QR code system, streamlining transactions and reducing bureaucratic hurdles.
Regulatory Measures: To support the crypto ecosystem, the city has updated its economic activity nomenclature to include crypto-related activities, simplifying tax filings for businesses in the sector. Moreover, virtual asset service providers are now excluded from certain bank-collection regimes under the turnover tax, promoting a more crypto-friendly regulatory environment.
Mayor's Vision:
Mayor Jorge Macri emphasized the city's ambition, stating,
"The goal is for the City to become a world leader in crypto."
He highlighted the importance of reducing bureaucracy to facilitate taxpayer compliance and attract new businesses to the city.
Argentina has seen significant cryptocurrency adoption, with approximately 10 million crypto accounts nationwide, accounting for 22% of Latin America’s total in 2024. This high adoption rate has influenced the government's decision to integrate cryptocurrencies into public administration.
What You Can Pay With Crypto
Under the BA Cripto program, both individuals and businesses can use cryptocurrencies to settle various municipal obligations, such as:
Property taxes (ABL)
Vehicle registration fees (Patentes)
Turnover tax (Ingresos Brutos)
Driver’s licenses
Traffic fines
Payments are processed through a QR code system, streamlining the transaction process.
With the implementation of BA Cripto, Buenos Aires is setting a precedent for digital asset integration in municipal governance. This initiative not only simplifies tax and fee payments for residents but also fosters a conducive environment for crypto-related businesses, signaling a significant step toward a digital future.
Major crypto players unite with TRM Labs to launch Beacon Network against financial crime
In a major move to combat illicit activity in the cryptocurrency ecosystem, TRM Labs has launched the Beacon Network, a real-time response system designed to stop suspicious crypto transactions before they move across the blockchain. This initiative brings together top exchanges and financial platforms to act quickly against financial crime.
What the Beacon Network Does
The Beacon Network allows verified investigators to flag addresses linked to fraud or other illegal activity. Once flagged, participating exchanges and stablecoin issuers receive instant alerts, enabling them to review or freeze transactions before funds can be withdrawn. This proactive approach aims to significantly reduce the movement of illicit assets.
A United Front Against Crypto Crime
The network isn’t just TRM Labs working alone—major industry players such as Coinbase, Binance, Kraken, Ripple, Crypto.com, Robinhood, PayPal, and Stripe are contributing. Leading federal law enforcement agencies are also actively involved, helping to identify high-risk addresses and trigger timely alerts.
Real-Time Tracking for Rapid Action
A standout feature of the Beacon Network is its real-time tracking of flagged addresses. Funds are traced across the blockchain, and this intelligence is propagated instantly to connected services, ensuring that suspicious activity can be intercepted within minutes rather than days.
The Stakes Are High
The need for such a system is urgent: since 2023, at least $47 billion in cryptocurrency has been sent to fraud-related addresses, and 2025 has already seen over $2.3 billion stolen in hacks. The Beacon Network represents a coordinated, fast-acting solution to curb losses and protect participants across the crypto space.
Beyond the Brief
Stirring the Fed: Who’s Who, What’s Next & Why It Matters
As of August 2025, the Federal Open Market Committee (FOMC) comprises 12 voting members, including 5 permanent governors and 7 rotating regional bank presidents. This year, the committee has seen a shift in its voting members due to the annual rotation, with new faces bringing diverse perspectives to the table.
Notably, President Trump has called for the resignation of Governor Lisa Cook, citing allegations related to her mortgage filings. This development adds an element of uncertainty to the committee's composition and future policy directions.
Additionally, Scott Bessent, currently serving as the U.S. Treasury Secretary, has been mentioned as a potential candidate for the Fed Chair position. While his appointment would require Senate confirmation, his background in financial markets could influence the Fed's approach to monetary policy.
🧾 FOMC Voting Members: 2025 Snapshot
🔄 Upcoming Changes and Potential Replacements
Lisa Cook: Facing political pressure, her resignation could lead to a more conservative replacement, potentially shifting the committee's stance on monetary policy. President Trump’s push for Lisa Cook’s resignation doesn’t automatically remove her; it must go through Senate and formal process.
Adriana Kugler: Her term ends in January 2026. Stephen Miran has been nominated for her replacement, which could influence the committee's approach to economic policy.
Jerome Powell: His term as Chair ends in May 2026. Discussions are ongoing regarding his potential reappointment or replacement, with economic adviser Kevin Hassett, former Fed Governor Kevin Warsh and Fed Governor Christopher Waller among the names mentioned.
How FOMC Changes Happen
Here’s how leadership or member changes operate:
a. Chair of the Federal Reserve
Appointment: The Chair is nominated by the President of the United States and must be confirmed by the Senate.
Term: The Chair serves a 4-year term but can be reappointed. The term as Chair is independent of their 14-year board membership term.
Replacement: If a Chair resigns or is removed, the President nominates a new Chair. Until confirmation, the Vice Chair may act in their stead. Chair changes are significant: a new Chair could alter monetary policy tone, interest rates, and crypto risk messaging.
b. Federal Reserve Governors
Appointment: All 7 Governors (including the Chair and Vice Chairs) are nominated by the President and confirmed by the Senate.
Term: Governors serve 14-year terms staggered to maintain continuity. Vacancies are filled by presidential nomination.
Resignation: If a Governor resigns early (like Adriana Kugler), the President nominates a replacement for Senate confirmation. The new Governor serves either a full new 14-year term or the remainder of the original term, depending on the seat.
c. Regional Fed Bank Presidents
Selection: The 12 regional banks have boards of directors. The President of each regional bank is appointed by that bank’s board, subject to approval by the Board of Governors.
Voting Rotation: Only 5 of the 12 presidents vote at a time; the New York Fed president always votes. If a president leaves, the regional board appoints a replacement with approval from the Fed Governors.
[The New York Fed president always has a permanent vote on the FOMC because the New York Fed plays a unique role in implementing monetary policy. Specifically:
Open Market Operations: The New York Fed executes the Fed’s buying and selling of government securities, which directly affects interest rates and liquidity.
Market Communication: It acts as the primary point of contact with financial markets, providing the Fed with critical real-time market intelligence.
Historical Role: By tradition and structure, its president has a permanent vote to ensure continuity and expertise in the implementation of monetary policy.]
Influence: Regional Fed Presidents are less politically influenced but still affect voting and local economic focus.
🧠 What This Means for Markets
The evolving composition of the FOMC introduces uncertainty into monetary policy direction. A shift towards more hawkish or dovish stances could influence interest rates, inflation expectations, and overall economic stability. Market participants should closely monitor these developments, as changes in the committee's makeup can have significant implications for investment strategies and economic forecasts.
Dollar Domino: How the U.S. GENIUS Act Is Triggering EU & China Stablecoin Moves
U.S. Sets the Rules of the Game
The GENIUS Act has done more than regulate stablecoins—it has drawn a line in the sand. By requiring one-to-one backing with U.S. Treasuries and giving Washington full oversight of issuers, the law effectively transforms dollar-pegged stablecoins into a new channel for global demand for U.S. debt. The result: more Treasuries purchased, deeper entrenchment of the dollar, and expanded U.S. financial leverage worldwide.
This isn’t just domestic financial policy—it’s monetary statecraft dressed as regulation.
Europe’s Dilemma: Choosing Public Rails
The European Union, under pressure not to lose ground, is reconsidering how to launch its digital euro. What’s striking is the EU’s reported openness to using public blockchains like Ethereum or Solana, rather than limiting itself to private, centrally managed systems.
This matters because public chains already have global liquidity, network effects, and developer ecosystems. A digital euro on Ethereum, for example, could plug directly into the same infrastructure where dollar stablecoins dominate today. In fact, the major U.S. stablecoins such as USDC, USDT, and PYUSD already run on these same public networks, giving the dollar a first-mover advantage.
But the choice is double-edged:
Public chains offer reach and interoperability—ensuring the euro isn’t walled off.
They also cede visibility and some control to networks not fully under EU sovereignty.
If the EU hesitates or opts for a private system, the dollar could entrench itself even deeper in global DeFi, payments, and remittances—leaving the euro playing catch-up.
China’s Move: Yuan Stablecoins and Global Ambition
China is reportedly
China is reportedly exploring yuan-pegged stablecoins to push its currency further into global use. While the e-CNY already exists as a tightly controlled central bank digital currency, adoption has been slow, with most payments still dominated by WeChat Pay and Alipay. Banks and fintechs often treat the e-CNY more as a compliance obligation than a business opportunity.
According to sources, the State Council is preparing to approve a fresh yuan internationalization plan later this month, with stablecoins expected to play a central role. Hong Kong has already set the stage by passing legislation to allow licensed issuers to launch fiat-backed stablecoins, including those pegged to the offshore renminbi (CNH), making it a strategic testing ground for China’s ambitions.
For Beijing, the appeal of stablecoins lies not in decentralization but in programmability and control. Features piloted with the e-CNY—such as expiration dates, sector-specific limits, and geographic restrictions—could be embedded directly into a yuan stablecoin. This would allow circulation to be selectively restricted to licensed offshore hubs, enforce transaction caps, and maintain capital controls, while still extending the yuan’s reach abroad. In short, a CNH-backed stablecoin could internationalize the yuan on Beijing’s terms, offering global financial influence without undermining domestic control.
China - Why It’s Not Yet Decided
The contemplated stablecoin is planned to be rolled out initially in Hong Kong and possibly Shanghai, regions with more flexible financial systems compared to mainland China.
Discussions appear centered on regulatory readiness, issuer responsibilities, and risk management.
Given China's history of digital regulation—especially its cautious posture after banning crypto mining and trading in 2021—it’s logical that China may prioritize controlled environments (like private systems or state-backed infrastructures such as BSN) over public blockchains.
Could China Use a Public Blockchain Eventually?
From a strategic and technical perspective, deployment on a public blockchain could offer significant utility—including interoperability, liquidity access, and integration into global digital markets.
However, China’s priorities around sovereignty, visibility, and regulatory control may point them towards:
Using private/permissioned networks, possibly through systems like the Blockchain-based Service Network (BSN)—a government-backed infrastructure that supports both permissioned and permissionless frameworks, including interoperability with Ethereum among others.
Deploying experimental versions (e.g., pilot programs) on semi-public or hybrid chains while maintaining strict oversight.
Game Theory in Motion: Why No One Can Opt Out
Here’s the hard truth: this isn’t about innovation, it’s about power. Once the U.S. linked stablecoins directly to Treasury demand, it created a global incentive structure:
Every dollar stablecoin minted = more U.S. Treasuries bought.
Every dollar stablecoin used = deeper dollar dominance in digital trade.
From a game theory perspective, the U.S. made the first move. The EU and China don’t have the luxury of indifference anymore. If they stay passive:
Their currencies risk being sidelined in the digital economy.
Their ability to shape cross-border settlement and global liquidity weakens.
The U.S. consolidates both monetary dominance and political leverage.
Even if Europe and China don’t want stablecoins, the rational response is to act—because failing to do so means ceding future influence.
In other words: the U.S. didn’t just regulate stablecoins. It weaponized them. And now everyone else is forced onto the board.
The stablecoin race is not about technology adoption—it’s about who controls the rails of digital value exchange in the next decade.
WHAT WE ARE READING (OR WATCHING)
Governance Watch
Buenos Aires residents will be able to pay local taxes with cryptocurrencies.
Australia orders audit of crypto trading giant Binance
The Onboarding Wave
Bybit partners with Manteca to scale its offering in Argentina and Brazil
Crypto on the Balance Sheet
Hong Kong’s Ming Shing Enters $483 Million Bitcoin Purchase Agreement
Beyond the Chain
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.
