Blockchain & Digital Assets Weekly Briefing - Week 36
- danae317
- Sep 5
- 12 min read
Updated: Sep 20
Week ending 5th September 2025
From custody to regulation, adoption to innovation, the crypto landscape continues to evolve at lightning speed. In this edition, we highlight key moves shaping the market: U.S. Bank reboots Bitcoin services for institutional ETFs, signaling a renewed focus on custody solutions. Ethereum’s Layer 2 Polymarket secures CFTC approval, paving the way for a U.S. prediction market resurgence. Down under, crypto is staking a foothold in Australia’s $2.8 trillion pension market, while Europe witnesses the emergence of its first Bitcoin treasury giant. The Bank of England’s deputy governor also signals a more pragmatic approach to stablecoins, reflecting the reality of a multi-money future.
Beyond the headlines, we dive into the 2025 Chainalysis Crypto Adoption Report, unpacking the key insights shaping adoption, regulation, and the next wave of digital asset growth.
Custody comes back: U.S. Bank reboots Bitcoin services for institutional ETFs.
Ethereum L2 Polymarket wins CFTC approval, paving the way for a U.S. prediction market comeback.
Crypto gains foothold in Australia’s $2.8T pension market.
Europe’s first Bitcoin treasury giant takes shape.
BoE deputy governor clarifies stablecoin approach: a pragmatic path in a multi-money future.
Beyond the Brief
Custody comes back: U.S. Bank reboots Bitcoin services for institutional ETFs
On September 3, 2025, U.S. Bank, the fifth-largest bank in the U.S. by total assets, reinstated its cryptocurrency custody services, originally introduced in 2021 but suspended in early 2022 due to regulatory constraints. This decision marks a recalibration aligned with evolving regulatory clarity surrounding banking and digital assets.
Regulatory Reset
The initial halt stemmed from the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), which imposed onerous capital and balance sheet requirements on banks holding digital tokens. This made crypto custody alarmingly resource-intensive. With the SEC reversing SAB 121 earlier in 2025—under a more crypto-accommodating administration—banks like U.S. Bank now have a regulatory runway to re-enter the crypto custody space.
What’s Back—and What’s New
The refreshed offering targets institutional investment managers—including those running registered or private funds—and for the first time explicitly supports Bitcoin exchange-traded funds (ETFs). U.S. Bank is deploying this as an early-access programme through its Global Fund Services division.
Partnership with NYDIG, a specialized Bitcoin infrastructure and financial services provider, will serve as the sub-custodian, managing the Bitcoin holdings themselves. U.S. Bank remains the client-facing intermediary, delivering administrative continuity and reputational strength.
Institutional Perspective
Stephen Philipson, Vice Chair of U.S. Bank’s Wealth, Corporate, Commercial, and Institutional Banking, remarked on the value of stability and continuity:
“Having a bank-owned provider … gives clients a lot of comfort in an evolving part of the market.”
Strategic Ambitions
The relaunch signifies more than a simple service restart—it's a broader push into digital finance. U.S. Bank Wealth, Corporate, Commercial and Institutional Banking, which oversees $11.7 trillion in assets under custody and administration (as of June 30, 2025), is leveraging this reinstatement to reinforce its digital asset footprint across funds, ETFs, and other fintech-forward offerings. Dominic Venturo, the bank’s Chief Digital Officer, emphasised the institution’s commitment to being an early mover in digital asset services.
Industry Momentum
U.S. Bank is joining a growing roster of traditional banks exploring digital asset custody—such as Citigroup—and positioning itself amid the rapid rise of spot Bitcoin ETFs this year. BlackRock’s iShares Bitcoin Trust alone has surpassed $80 billion in market cap. Meanwhile, Coinbase continues to dominate existing ETF custody, serving over 80% of issuers.
Ethereum L2 Polymarket wins CFTC approval, paving the way for a U.S. prediction market comeback
According to Reuters, Polymarket, the world’s leading prediction market, has received formal approval from the U.S. Commodity Futures Trading Commission (CFTC) to resume operations in the United States—over three years after being forced to suspend access to American users due to regulatory issues.
Why It Matters
Regulatory Clearance via Acquisition
Polymarket secured its re-entry into the U.S. market through the $112 million purchase of QCEX, a CFTC-licensed derivatives exchange and clearinghouse, providing the necessary legal infrastructure for compliant operations.
Relief via No-Action Letter
The CFTC also issued a no-action letter, which grants Polymarket some leeway on recordkeeping and reporting obligations specific to event–based contracts.
Booming Interest in Prediction Markets
These markets have surged in popularity, particularly since the 2024 U.S. presidential election. Proponents pitch them as more insightful than opinion polls, while skeptics dismiss them as akin to “digital casinos.”
Political and Investor Ties
Polymarket recently received backing from 1789 Capital—a venture firm supported by Donald Trump Jr.—who has also joined as an adviser.
What Experts Are Saying
Nick Jones, founder of crypto firm Zumo, notes that this CFTC decision could mark a turning point for the sector. According to a Reuters report, he suggests that prediction markets "could be bigger than the stock market one day."
Context and Competition
Polymarket’s comeback follows similar developments: competitor Kalshi recently won a legal battle with the CFTC and now holds a $2 billion valuation. This underscores rising institutional confidence in prediction markets as legit financial tools—not just fringe betting platforms.
Polymarket’s return to the U.S. market marks a notable moment in the evolution of financial markets. With the legal framework now secured and regulatory signals supportive, the platform stands poised to grow considerably. But questions remain: Will prediction markets transcend criticism and earn mainstream credibility—or will they be dismissed as speculative novelties?
Crypto gains foothold in Australia’s $2.8T pension market
Australia’s superannuation system—valued at around A$4.3 trillion (approximately US$2.8 trillion)—is receiving its first substantial crypto-era nudge, as major exchanges like Coinbase and OKX introduce tailored products for Self-Managed Super Funds (SMSFs). This move opens a modest but meaningful pathway for digital assets to enter retirement portfolios.
Although there’s technically no minimum balance to establish an SMSF, the ongoing costs — from annual administration to compulsory independent audits — quickly add up. As a result, SMSFs are typically only cost-effective for larger portfolios, meaning this first wave of crypto adoption is more accessible to wealthier investors than to everyday workers with smaller balances.
Key Highlights
SMSFs Take the Lead
SMSFs, controlled by individuals, comprise roughly 25% of Australia’s pension assets.
These funds held about A$1.7 billion in crypto as of March 2025 according to the Australian Tax Office—a sevenfold increase since 2021—though still a tiny slice of the overall pension system.
Exchange Strategies: Building Access and Trust
Coinbase is prepping a dedicated SMSF service with more than 500 prospective clients already waiting, the service should go live in the coming months. OKX rolled out a similar initiative in June, and both firms report robust demand. Many investors intend to allocate up to A$100,000 each in digital assets.
These products go beyond trading—they bundle custody solutions, tax and accounting support, and legal compliance to align with SMSF regulations.
Regulatory Watchfulness
Australian regulators, including ASIC and AUSTRAC, have cautioned that crypto's volatility and compliance risks pose significant threats if not managed properly.
Traditional super funds largely remain shielded from crypto, with AMP being one of the only mainstream managers to make a small play—via Bitcoin futures.
Looking Overseas: A Global Shift
Similar momentum is emerging in other markets. In the U.S., a recent executive order now allows retirement plans like 401(k)s to include crypto and other alternative assets—a tailwind for global adoption.
Europe’s first Bitcoin treasury giant takes shape
Treasury B.V. has officially launched with a bold mission: to become Europe’s largest Bitcoin treasury company. Backed by major players including Winklevoss Capital and David Bailey's Nakamoto Holdings Inc. (a subsidiary of KindlyMD, NASDAQ: NAKA), the firm has raised €126 million (~$147 million) to purchase more than 1,000 BTC as the foundation of its balance sheet.
This launch positions Treasury B.V. as a significant force in the European digital-asset landscape, aiming to give investors a structured, public-market vehicle to gain exposure to Bitcoin.
Reverse Listing: Bringing Bitcoin to Euronext Amsterdam
A core piece of Treasury’s strategy is to enter public markets through a reverse listing with MKB Nedsense N.V. on Euronext Amsterdam.
A reverse listing (also called a reverse takeover or reverse merger) is a way for a private company to become publicly traded without going through the traditional IPO process.
If successful, Treasury B.V. would become the first dedicated Bitcoin treasury company listed on a major European exchange—a milestone that could attract institutional and retail investors alike.
Beyond the Balance Sheet: Advocacy and Community
Treasury’s ambitions go beyond just stacking sats. It is acquiring Amsterdam Decentralized B.V., organizer of the annual Bitcoin Amsterdam conference, and partnering with BTC Media LLC to strengthen Bitcoin’s presence across Europe. These moves position Treasury as both a financial and cultural hub for Bitcoin on the continent.
Leadership & Strategic Backing
CEO Khing Oei, a former Goldman Sachs and Fortress executive, brings a mix of traditional finance and hedge-fund expertise.
Advisory Board includes Bitcoin pioneers Cameron and Tyler Winklevoss and David Bailey, CEO of Nakamoto Holdings Inc.
This also marks Nakamoto Holdings’ first investment in a foreign Bitcoin treasury firm, underscoring its confidence in Treasury’s European strategy.
Why This Matters for Europe
Market Access: A listed vehicle could make Bitcoin exposure more accessible to European investors through traditional capital markets.
Institutional Signal: The involvement of well-known Bitcoin advocates and capital allocators sends a strong message of confidence.
Ecosystem Building: Controlling a major conference gives Treasury an influential platform to shape Bitcoin dialogue across Europe.
Treasury B.V. is attempting to do in Europe what a handful of high-profile companies have done in the U.S.: institutionalize Bitcoin on the balance sheet and open the door for traditional investors to participate. If successful, it could set the blueprint for how European capital markets interact with Bitcoin in the years ahead.
BoE deputy governor clarifies stablecoin approach: a pragmatic path in a multi-money future
Sarah Breeden, Deputy Governor of the Bank of England for Financial Stability since November 2023, is a central figure in shaping the UK’s financial system. She sits on the Monetary Policy Committee, chairs the Financial Policy Committee in the Governor’s absence, and plays a key role in regulatory oversight.
At the Innovation in Money and Payments conference, hosted by the Bank of England and Warwick Business School, Breeden clarified her position on stablecoins—emphasizing a pragmatic, risk-aware approach—while reaffirming her support for a central bank digital currency (CBDC). Her comments reflect a slightly different perspective from Governor Andrew Bailey, who has taken a more cautious stance toward systemic stablecoin adoption.
Systemic stablecoins are stablecoins that are widely used and large enough that, if they fail, they could affect the stability of the broader financial system.
UK Stablecoin Regulation: Current Landscape
As of mid-2025, the UK is actively developing a regulatory framework for stablecoins. The Financial Conduct Authority (FCA) has published Consultation Papers CP25/14 and CP25/15, seeking industry feedback on proposed rules for stablecoin issuance and cryptoasset custody. The consultation period concluded on 31 July 2025, with final rules expected in 2026.
Concurrently, HM Treasury released draft legislation in April 2025 to bring stablecoin activities into the regulatory perimeter. However, there is currently no framework in place for using stablecoins as a means of payment in the UK.
Clarifying the Stablecoin Approach
Breeden explained that later this year the Bank of England will be setting out proposals for consultation, including rules that would allow systemic stablecoin issuers to hold a portion of their backing assets in a subset of high-quality liquid assets, such as short-term UK government bonds, rather than only central bank reserves.
This is not a shift in policy, but a clarification: the Bank aims to ensure stability, safety, and operational flexibility for tokenized money while encouraging innovation in the payments ecosystem. Breeden also highlighted benefits like faster cross-border settlements and improved efficiency for tokenized securities transactions via the Bank’s Digital Securities Sandbox, run with the FCA.
Bloomberg reported that Breeden added it was “absolutely essential that we produce a regime that supports the issuance of sterling stablecoins,” underscoring the Bank’s commitment to a workable framework for digital money.
Multi-Money Ecosystem Vision
Central to Breeden’s message is a “multi-money” model, where traditional bank deposits, tokenized bank money, stablecoins, and a potential digital pound coexist. Interoperability is key: users should seamlessly move between these forms without fragmentation, while preserving the singleness of money.
"My vision for the UK payments landscape is one of a “multi-money” mixed ecosystem, where different forms of money play their own roles, maximising utility for UK businesses and households." Sarah Breeden at the Innovation in Money and Payments conference.
Breeden’s approach contrasts slightly with Governor Bailey’s, who has emphasized stricter limits on the role of stablecoins in the financial system. Her stance underscores flexibility and clarity while maintaining financial stability.
RT2 and Settlement Capabilities
Breeden highlighted that RT2, the Bank of England’s Real-Time Gross Settlement system, already enables settlement in pound for assets traded in other systems, including tokenized assets and stablecoins on blockchain or distributed ledgers. This means that stablecoins and tokenized securities could be settled directly in pounds, making transactions faster, safer, and more integrated across traditional and digital markets.
The Bank is also exploring the potential of a digital pound through CBDC, though it remains in development and is not yet operational.
"And so, as the financial system evolves, and new technologies drive innovation in trading and settlement, our payments infrastructure must keep pace to preserve the role of central bank money at the heart of the financial system – including in a tokenised world." Sarah Breeden
Global Shift Away from CBDCs
While the UK continues to explore the potential of a digital pound through CBDC initiatives, other nations are reevaluating their positions. For instance, the United States has effectively halted its CBDC plans, with President Trump signing an executive order prohibiting federal agencies from establishing or promoting a digital dollar. Similarly, the Bank of Canada has ceased its work on a digital Canadian dollar, citing completed research and shifting priorities. This global trend reflects a growing caution towards CBDCs, driven by concerns over privacy, technological costs, and the role of central banks in the digital economy.
Timeline & Next Steps
Later in 2025, the Bank will launch a consultation on stablecoin proposals, including rules for HQLA holdings. Final rules are expected in 2026, providing clarity for the issuance and use of stablecoins in the UK.
Beyond the Brief
The Key Insights from the 2025 Chainalysis Crypto Adoption Report
A Global Mosaic
Chainalysis has unveiled its sixth annual Global Crypto Adoption Index, spotlighting where cryptocurrency is transitioning from fringe to mainstream in both emerging and developed markets. What stands out in the 2025 edition is a balancing dynamic—India holds the top rank, closely followed by the United States—underscoring a convergence of grassroots and institutional momentum.
Methodology Unpacked
The index hinges on four carefully weighted sub-indices:
Centralized On-Chain Volume (Relative to PPP) – Measures total crypto inflows to centralized services, adjusted against income per capita.
Retail Transactions to Centralized Platforms – Focused on smaller (under $10,000), individual-level activity, scaled similarly by purchasing power.
DeFi Activity to Centralized Platforms – Captures decentralized finance usage relative to income levels.
Institutional Transfers (New for 2025) – Tracks on-chain transfers exceeding $1 million, emphasizing growing institutional engagement.
The rankings of all 151 countries across the four sub-indices are combined using a geometric mean, then normalized from 0 to 1 to produce the final positions.
Top-Ranked Nations and Regional Shifts
Leading the pack:
India
United States
Pakistan
Vietnam
Brazil. Other notable entries include Nigeria, Indonesia, Ukraine, the Philippines, and the UK, rounding out the top 11
Regional Momentum
APAC (Asia-Pacific) experienced the fastest growth, with crypto transaction volume soaring 69%—from $1.4 trillion to $2.36 trillion—over the 12 months ending June 2025.
Latin America posted a 63% increase, while Sub-Saharan Africa climbed 52%, propelled by remittances and necessary financial services.
North America added more than $2.2 trillion, up about 49%, reflecting institutional catalysts like ETF launches and evolving regulation.
Europe accounted for approximately $2.6 trillion, while MENA (Middle East and North Africa) grew more moderately at about 33% growth.
Institutional Legitimacy Gains
The U.S. climbed from fourth to second place, buoyed by the approval of spot Bitcoin ETFs and clarity in regulation. These developments have drawn institutional investment and legitimized crypto’s role in traditional finance.
Population-Adjusted Insights
While large-volume markets dominate on total volume, smaller countries emerge as leaders when adoption is measured per capita. Eastern European nations—Ukraine, Moldova, Georgia—top this adjusted list, reflecting local drivers like economic uncertainty, distrust of traditional banks, and high digital fluency.
The Stablecoin Surge
Tether (USDT) and USDC continue to dominate transaction volumes. From mid-2024 to mid-2025, USDT monthly volume exceeded $1 trillion, while USDC ranged between $1.24 trillion and $3.29 trillion. Emerging stablecoins like EURC, PYUSD, and DAI are growing more rapidly, especially in local markets.
Bitcoin's Central Role in Global Crypto Adoption
Bitcoin continues to serve as the primary fiat on-ramp into the cryptocurrency market, accounting for over $4.6 trillion in inflows—more than double any other category. The United States leads by volume, with South Korea and the European Union trailing behind. These flows confirm that while altcoins and DeFi tokens are important, Bitcoin and stablecoins remain the central gateways into crypto.
A Dual-Track Crypto Revolution
This year’s report signals not just broader adoption—but deeper integration. India and Pakistan illustrate how crypto is becoming indispensable everyday infrastructure in high-growth economies. Meanwhile, U.S. institutional uptake underscores crypto’s maturation in regulated environments. Altogether, the data illustrate a turning point where crypto bridges both grassroots needs and institutional portfolios.
WHAT WE ARE READING (OR WATCHING)
The Cryptography Frontier
AI theme will continue driving stocks higher, says Franklin Templeton CEO Jenny Johnson
The Stablecoin Standard
ECB's Lagarde says EU should close loopholes in stablecoin regulation
Governance Watch
SEC and CFTC staff clear path for spot crypto trading on regulated exchanges
Russian Finance Ministry Wants to Lower Citizens’ Barriers to Crypto Market Entry
The Onboarding Wave
Bitcoin Faithful Bet on Saylor’s Strategy Being Added to S&P 500
Ethereum Advocacy Group Etherealize Raises $40M to Bring ETH to Wall Street
Singapore’s QCP Group Secures Key Abu Dhabi Crypto License
The Nakamoto Engine
x
The Ethereum & Altcoin Atlas
World Liberty Financial Blacklists Justin Sun's Address With $107M WLFI
On the Launchpad
Crypto Boosters Stripe and Paradigm Tease Payments Blockchain
Crypto on the Balance Sheet
Elon Musk’s lawyer Alex Spiro set to chair $200 million Dogecoin treasury company, say sources
Trump Crypto Guru Unveils ‘MSTR Squared’ Wager as Frenzy Cools
Jack Ma-linked Yunfeng Financial acquires $44M of ETH amid Web3 push
Beyond the Chain
Tesla proposes Elon Musk pay package that could make him the world’s first trillionaire
Swiss Crypto Bank Sygnum Expands Institutional Investment Solutions to Germany and Liechtenstein
Nasdaq tightens scrutiny of companies raising cash to buy crypto: report
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.
