Blockchain & Digital Assets Weekly Briefing - Week 45
- danae317
- Nov 7
- 11 min read
Week ending 7th November 2025
The digital assets landscape continues to shift as industry and policy interests converge. In Japan, energy operators are testing Bitcoin mining as a way to absorb surplus renewable energy and help stabilize grid output. A coordinated group of DeFi executives has begun shaping Ethereum-focused regulatory engagement in response to growing institutional participation. In the UAE, telecom provider Du has publicly announced its entry into the cloud-mining sector, signalling broader corporate involvement in Bitcoin infrastructure. The UK is moving forward with a stablecoin regulatory framework designed to remain competitive with developments in the United States. At the same time, payments giant Worldline has started testing stablecoin-based settlement processes in collaboration with Fipto.
Japan officially brings Bitcoin mining into its national energy playbook.
DeFi leaders unite to shape Ethereum policy engagement amid rising institutional interests.
Telecom meets Bitcoin: UAE’s du enters cloud mining arena.
UK’s emerging stablecoin rules: “keeping pace” with the U.S.
Payment giant Worldline tests stablecoin settlement with Fipto.
Beyond the Brief
Japan officially brings Bitcoin mining into its national energy playbook
Japan has taken a notable step by incorporating Bitcoin mining into its national energy planning. This shift is tied to a pilot project that uses Bitcoin miners to help balance the electricity grid during fluctuations in supply and demand.
A new initiative involving Canaan Inc., a manufacturer of specialized Bitcoin mining hardware, will deploy approximately 4.5 megawatts of mining capacity inside the Japanese power network.
This mining installation will operate in partnership with a regional electric utility company in Japan. The name of the utility has not been publicly disclosed.
Why Japan Is Doing This
Japan has a growing share of renewable energy production. When renewable output exceeds grid demand, the surplus becomes difficult to store or efficiently distribute. Bitcoin mining can act as a flexible energy consumer that ramps up only when there is excess power.
This helps reduce waste from surplus renewables.
It also allows the electric utility to stabilize the grid by adjusting mining operations up or down depending on demand.
What Makes This Significant
This is not just private mining. The involvement of a power utility means mining is being treated as part of national energy infrastructure, not just a commercial operation.
This marks a policy-level shift in how the country frames Bitcoin mining: From “high energy consumer” → to “dynamic load management tool.”
Caveats and Open Questions
The project is still small.4.5 MW is not yet meaningful on a national scale.
If successful, Japan could influence other developed economies facing similar renewable balancing challenges. This could shift mining away from countries where energy policies are unstable toward markets where mining is considered valuable for grid management.
This would be a strategic change in where and how Bitcoin mining is located globally.
DeFi leaders unite to shape Ethereum policy engagement amid rising institutional interests
A group of major decentralized protocol teams has formed the Ethereum Protocol Advocacy Alliance (EPAA), described by its founders as a voluntary coordination forum that is not a legal entity. The stated purpose is to help policymakers understand the technical nature and public-infrastructure role of Ethereum’s non-custodial protocol layer.
The founding participants listed in the announcement are Aave Labs, Aragon, Curve, Lido Labs Foundation, Spark Foundation, The Graph Foundation, and the Uniswap Foundation. These groups maintain core protocol components that collectively support a substantial portion of Ethereum’s decentralized financial activity.
The EPAA states that members “secure over $100 billion in assets through open, non-custodial protocols”, reflecting the scale of infrastructure at stake.
According to the announcement, the alliance intends to support engagement with policymakers through:
Sharing technical and operational expertise,
Producing clear explanatory materials about how non-custodial protocols function.
Coordinating messaging among protocol teams when engaging with policy institutions.
Identifying shared research and policy priorities.
The EPAA also outlines several values it aims to preserve at the protocol layer: neutrality of the base network, transparency of on-chain operations, permissionless access to infrastructure, and flexibility for innovation.
Critical Assessment
The formation of the EPAA indicates that Ethereum-based protocol organizations are preparing for a long cycle of regulatory development. Instead of reacting passively to policy proposals, the alliance signals an intention to provide technical grounding to support regulatory clarity.
However, several points require careful observation:
Coordination Complexity: These protocol teams operate with different governance systems, economic designs, and strategic priorities. Maintaining consistent shared messaging could be challenging.
Incentive Alignment: Some founding members use token-based governance, where large token holders influence protocol direction. This can create incentives that do not always align with everyday users or long-term decentralization goals.
Policy Effectiveness: Influence in regulatory arenas often correlates with sustained funding, legal infrastructure, and political alliances. Since the EPAA is not a legal entity and is framed as voluntary coordination, its practical ability to shape legislation remains uncertain.
The alliance’s success will depend on whether it can articulate the public-infrastructure role of Ethereum’s protocol layer in a way that resonates with regulators who primarily focus on consumer protection, financial system stability, and systemic risk management.
Context: Ethereum Foundation’s Institutional Outreach
The Ethereum Foundation recently launched an institutional portal designed to help enterprises, asset managers, financial institutions, and infrastructure providers understand Ethereum’s capabilities.
"There was no question that the blockchain that we would start our tokenization on was on Ethereum." Robert Mitchnick, Head of Digital Assets at BlackRock
The portal highlights several institutional use case areas:
Real-World Assets (RWAs). On-chain tokenization of off-chain assets such as real estate, commodities, and bonds.
Stablecoins. Digital assets designed for price stability, often pegged to fiat currencies like USD.
DeFi. Open financial systems where users lend, borrow, trade, and earn yield directly through smart contracts.
Layer-2 Networks (L2s). Scaling systems that enable faster, lower-cost transactions while settling back onto Ethereum.
ZK Privacy and Compliance: The Next Institutional Frontier
A major theme in the institutional portal is zero-knowledge cryptography (ZK) as a solution that balances privacy and regulatory auditability.
ZK-based systems allow organizations to:
Keep transaction or portfolio details confidential
While still proving correctness and compliance to auditors or regulators
Without revealing the underlying data
This model supports regulated requirements and decentralized verification simultaneously.
It is particularly relevant for:
Payment networks
Custodians and asset managers
Tokenized securities platforms
Enterprises deploying private workflows on public infrastructure
ZK privacy is not secrecy. It is controlled transparency. This is increasingly viewed as the bridge between public blockchain systems and institutional compliance frameworks.
Etherealize and Institutional Integration Strategy
A parallel example of Ethereum’s institutional outreach comes from Etherealize, a startup supported last year by the Ethereum Foundation and Vitalik Buterin, which focuses on integrating traditional finance infrastructure with Ethereum.
Tomasz Stańczak, co-director of the Ethereum Foundation, explained the motivation:
“Institutions need someone to be the face of the organisation that is representing Ethereum.”— Tomasz Stańczak, quoted in DL News
Etherealize leadership has articulated a clear belief that Ethereum is the settlement layer institutions will ultimately choose. During discussions with institutional partners, the following viewpoint was shared:
"There's only one platform that has been up for its entire existence, never had downtime, it's the most secure, it's the most global, has the most regulatory clarity, has the most liquidity, and has the most adoption, and that's Ethereum. So it becomes the obvious choice for when large institutions that move very slowly but they move definitively with real assets want to put real assets in a platform with real security. The only choice is Ethereum because of its track record.” Vivek Raman at the TradeTalks with Nasdaq
Etherealize’s ambitions extend into large-scale financial markets. In September, CEO Vivek Raman stated that the company is exploring how Ethereum could support native tokenization within the U.S. mortgage market, which represents approximately $16 trillion in outstanding value, according to a Yahoo Finance report.
The team’s broader focus includes designing mechanisms for bringing complex fixed-income instruments—such as mortgages and other structured debt products—onto Ethereum in a compliant and auditable way. The intention is to enable these assets to settle transparently on-chain while preserving institutional privacy requirements.
Additionally, representatives from Etherealize met with the U.S. Securities and Exchange Commission’s crypto task force in May to discuss how tokenization of stocks and bonds could be incorporated into existing regulatory frameworks.
Additionally, Etherealize met with the U.S. Securities and Exchange Commission’s crypto task force in May to discuss potential pathways for tokenizing stocks and bonds within regulatory frameworks.Source: Yahoo Finance, same link above.
This demonstrates active exploration of policy-aligned institutional adoption, not only theoretical positioning.
Telecom meets Bitcoin: UAE’s du enters cloud mining arena
Dubai-based telecom operator Du has launched a new service called “Cloud Miner”, letting UAE residents participate in Bitcoin mining through a subscription model instead of buying or maintaining their own hardware.
Key details:
Contracts offer 250 TH/s (terahashes per second) of mining power for a 24-month term.
Subscription is auction-based
Mining infrastructure stays within the UAE; users don’t handle hardware, electricity, maintenance.
To participate, users must complete KYC/AML verification using UAE Pass and enable two-factor authentication.
Why this matters
Lowering the barrier to crypto-mining participation – Traditional Bitcoin mining is costly and technically demanding. Du’s platform removes most of those hurdles.
Regulated domestic offering – Because this is a UAE-based service under local regulatory oversight, some of the risks associated with overseas mining (data jurisdiction, hardware reliability, regulatory uncertainty) are reduced.
Positioning within UAE’s digital asset strategy – The move aligns with the UAE’s push to become a hub for digital finance, blockchain and crypto infrastructure.
What this signals for the broader ecosystem
Telecom companies are beginning to diversify into digital-asset services beyond connectivity. By leveraging their infrastructure, brand trust and regulatory foothold, telcos like Du could become major players in crypto-adjacent services.
This could attract more retail participants in crypto from regions previously constrained by hardware or cost barriers.
Institutional players may view such offerings as more credible if backed by regulated domestic entities rather than obscure overseas setups.
The move may accelerate competition: other telcos and service providers may launch similar offerings, forcing innovation or consolidation in the “Mining as a Service” (MaaS) space.
UK’s emerging stablecoin rules: “keeping pace” with the U.S.
The Bank of England (BoE) has confirmed it will publish its proposed regulatory regime for stablecoins on Monday, with a goal to have the rules operational “as quickly as the U.S.”, according to a Bloomberg report.
What’s on the Table
The proposed rules appear to include temporary caps on individual holdings of roughly £20,000 and business holdings of about £10 million.
The regime will focus on “systemic” stablecoins—those likely to be used widely for payments—while lesser ones may face lighter regulation.
A driver behind the stricter UK approach: structural differences in credit markets, especially how mortgages are funded via commercial banks in the UK versus markets in the U.S.
The BoE is aiming for speed: the timeline suggests rules may be operational by end of next year.
Points of Caution
Implementation Complexity: Caps on holdings may prove difficult and costly to enforce — particularly for decentralised systems and cross-border flows. Industry associations argue these may impose burdensome requirements.
Caps may be contentious. While intended to manage financial-stability risks, the proposed holdings limits have already drawn criticism from industry groups. Implementation may prove complex, especially given the global nature of stablecoins.
“People in the U.S. get their mortgages from Fannie and Freddie, and they’re funded in financial markets, [...] People in the U.K. get their mortgages from commercial banks and so that issue that we talked about, about the need for limits as we transition to a world of stablecoins is one that is less pertinent to the US regime.” said Bank of England Deputy Governor Sarah Breeden
Balancing Innovation and Stability: The BoE remains cautious. Its governor, Andrew Bailey, has emphasised that widely used stablecoins may need to be regulated like banks, including deposit-style protections.
What about overseas issuers? Much of the stablecoin market is global. How the UK proposal handles non-UK issuers, cross-border flows, and regulatory alignment will be key.
The 10th of November launch is a milestone, not the finish line. Publishing the proposal is the first step. Stakeholders will watch closely for consultation outcomes, exemptions, transitional arrangements and enforcement regimes.
Payment giant Worldline tests stablecoin settlement with Fipto
Worldline, a major European payment services provider generating €4.6 billion in annual revenue and operating across more than 40 countries, has begun working with fintech firm Fipto to explore the use of stablecoins for payment and settlement flows. The initiative aims to assess how blockchain-based digital money can operate alongside existing payment networks rather than replace them.
What the Partnership Involves
Worldline and Fipto are developing and testing use cases that allow organisations to conduct payments and settlements using stablecoins in addition to traditional digital payments.
According to the official release, work on these pilots has already started in Europe and the Asia-Pacific region. The collaboration focuses on cross-border settlement, treasury operations and potential merchant payment acceptance.
Fipto contributes regulatory readiness. The company holds a Payment Institution licence issued by the ACPR in France and is registered as a Digital Asset Service Provider with France’s AMF, as well as a Virtual Asset Service Provider in Luxembourg.
Why This Matters
Stablecoins can enable:
24/7 settlement availability
Programmable and automated payment logic
Potential cost and operational efficiency improvements
These characteristics align with evolving institutional demands for more flexible global payment infrastructure.
Worldline states that its broader ambition is to support coexistence between traditional digital payments and blockchain-based instruments. The goal is not to replace existing systems, but to expand available settlement options.
What Comes Next
Neither partner has yet disclosed specific launch timelines, participating merchants, or the stablecoins selected for settlement. Regulatory engagement and controlled pilot rollout will likely shape the next phase.
The initiative signals a meaningful step: a major European payments company is now testing stablecoin infrastructure in real payment environments, rather than treating digital assets as a peripheral experiment.
Whether this becomes a scalable model will depend on demonstrated reliability, efficiency gains, and market willingness to adopt hybrid settlement rails.
Beyond the Brief
Switzerland’s Crypto Pivot: From Safe-Haven Banking to Tokenised Money
Switzerland is preparing to make a significant shift in its financial architecture by integrating regulated stablecoins and crypto-asset businesses into its mainstream regulatory framework. The move appears designed to preserve its reputation for financial stability while tapping into the growth of tokenised finance.
The Swiss Federal Council launched a public consultation on 22 October 2025 (until 30 January 2026), aiming to amend the Financial Institutions Act (FinIA) and related laws. The consultation proposes:
New licence categories for “payment instrument institutions” that can issue stablecoins (“value-stable blockchain-based tokens”).
A new licence category for “crypto-institutions” that provide crypto services distinct from traditional banking.
More clearly defined obligations: full backing of stablecoins by high-quality liquid assets, segregated reserves, white-papers approved by the Swiss Financial Market Supervisory Authority (FINMA), and pre-launch notifications.
Foreign-issued stablecoins traded in Switzerland to be classified simply as crypto-assets unless they are issued domestically, limiting arbitrage of the new regime.
Removal (or raising) of the CHF 100 million cap on client-fund holdings for fintech-style “payment institutions”, suggesting intention to allow scale.
In addition, in 2024 FINMA published updated guidance on stablecoins, highlighting risks around money-laundering and default guarantees for stablecoin issuers.
Why it matters
For Switzerland’s brand: By regulating stablecoins under its trusted regulatory regime, Switzerland hopes to extend its “safe-haven / sound money” image into the digital-asset world.
For global finance: If a Swiss-franc-backed stablecoin gains traction, it could give the Swiss franc a broader digital footprint and reduce reliance on other global reserve currencies.
For the banking model: Issuance of broadly usable stablecoins might undermine Switzerland’s traditional deposit-based banking model — if users hold digital francs in wallets rather than bank accounts.
For innovation vs delay: Switzerland’s measured pace means it can learn from others’ mistakes, but also risk being overtaken by faster-moving jurisdictions.
WHAT WE ARE READING (OR WATCHING)
The Stablecoin Standard
Tether Attestation Reports Q1-Q3 2025 Profit Surpassing $10B
65 Million Revolut Users Can Now Swap Stablecoins at Zero Cost
Monthly Ethereum stablecoin volume hits record $2.8 trillion in October
Latin American Crypto Exchange Ripio Launches Argentine Peso Stablecoin 'wARS'
Ripple partners with Mastercard to bring RLUSD stablecoin to credit card transactions
Stablecoin Surge Prompts Review of New Global Bank Crypto Rules
British Stablecoin Regime to Keep Pace With US, Official Says
The Nakamoto Engine
Bitcoin’s Silent IPO: Why This Consolidation Isn’t What You Think
On the Launchpad
Fidelity International’s Bitcoin ETP approved by FCA for retail access
Beyond the Chain
Robinhood earnings top forecasts as crypto revenue jumps 300%
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.
