09/05 Morning Briefing
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Fireblocks launches stablecoin payment network..."The SWIFT of stablecoins"
2025-09-04T23:35:57.000Z
Fireblocks recently launched a stablecoin payments network, which it has branded as the 'Stablecoin SWIFT'. This new platform aims to address the fragmentation in the stablecoin market by providing a unified payment layer for digital dollar transactions. It partners with major players including Circle and Stripe, and already handles transactions exceeding $200 billion monthly. This initiative aligns with the growing demand for stablecoins, especially considering the market's rapid growth from $200 billion at the beginning of the year to $280 billion currently. The development of this infrastructure suggests an increased institutional interest in stablecoins and promises to streamline operations in the cryptocurrency market. Such advancements could lead to a more efficient financial ecosystem and potentially boost broader usage and acceptance of cryptocurrencies.
The launch of Fireblocks' stablecoin payments network marks a pivotal step in the evolution of digital finance infrastructure. By positioning itself as the 'Stablecoin SWIFT', Fireblocks is addressing a crucial need for streamlined, transparent payment systems that can support the growing volume of stablecoin transactions. Currently processing over $200 billion monthly, this network reflects the increasing institutional adoption of stablecoins, highlighting a stark shift toward integrating these digital assets into mainstream financial systems. The partnership with major industry players like Circle and Stripe underscores the potential for widespread acceptance and use of digital dollars, making stablecoins not just a niche asset but a significant part of global financial transactions. With the backdrop of a stablecoin market that has seen substantial growth this year, the need for robust infrastructure becomes clear. Such developments will likely pave the way for enhanced stability in the crypto market, offering a reliable bridge for traditional financial institutions and new-age digital assets. Furthermore, the competition from companies like Circle and Stripe to establish dominant stablecoin infrastructures illustrates the strategic importance of controlling digital payment networks in the emerging financial landscape. Overall, Fireblocks' initiative could serve as a catalyst for the broader adoption and integration of stablecoins in everyday transactions, contributing to the maturation of the cryptocurrency markets.
[Block Media Andrea Yoon Editor] Digital asset custody company Fireblocks has launched a stablecoin payment network. The company stated that this platform connects issuers, banks, fintech companies, and liquidity providers, handling over $200 billion in transactions per month. Dreaming of a Stablecoin SWIFT According to Crypto Times on the 5th, Fireblocks described the new infrastructure as a "Stablecoin SWIFT," designed to solve the fragmentation issues within the current stablecoin system. Instead of transactions through separated on-off ramps and opaque platforms, it supports digital dollar payments through an integrated payment layer. Fireblocks announced that more than 40 participants, including Circle (USDC issuer) and Bridge, a stablecoin platform acquired by Stripe in 2024, have already joined the network. These partners are responsible for over $200 billion in stablecoin payments monthly. Fireblocks stated, "The current infrastructure is too fragmented to support institutional scale," and "this network was created to address that." Rapid Growth of the Stablecoin Market This move aligns with the rapid growth of the stablecoin market. According to data cited by Grayscale, as of June, the monthly stablecoin payment scale reached $800 billion. Additionally, the stablecoin market size surged from $200 billion in January to $280 billion in August, reflecting the institutional demand for fast, dollar-linked payments. Competitors are also establishing their own infrastructures. Circle launched its own stablecoin payment network in April, and Stripe is actively leveraging Bridge, which it acquired, to support the flow of stablecoins and tokenized assets. Both companies are also developing their own blockchains. This move by Fireblocks directly puts it in a competitive stance with major stablecoin infrastructure companies. As transaction volumes grow and regulatory standards strengthen, companies controlling payment networks are likely to define how digital dollars expand globally. If the comparison to SWIFT is appropriate, Fireblocks may be able to establish a foundation for bank-grade cross-border stablecoin payment standards and secure a leading position in the next phase of crypto finance.
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$10,000? Warning issued on potential 90% decline in Bitcoin
2025-09-04T23:35:06.000Z
Bloomberg Intelligence's Mike McGlone has issued a warning about a potential 90% drop in Bitcoin’s price, potentially falling back to $10,000. He draws attention to Bitcoin's increasing correlation with the stock market, suggesting it behaves more like a risk asset than a stable store of value. McGlone notes past highs as potentially overheated signals rather than solid long-term growth indicators, expressing concerns over Bitcoin's capacity to maintain its upward momentum. His forecast also reflects on the changing volatility dynamics in the Bitcoin market, suggesting a possible shift in market sentiment. The warning is based on Bitcoin's performance against traditional market indices like the S&P 500, which have shown moderate gains compared to its volatile nature. McGlone's analysis implies that as Bitcoin continues to intertwine with traditional finance, its role as a hedge against economic instability may be diminishing.
Mike McGlone's cautionary remarks about Bitcoin’s price, predicting a possible decline back to $10,000, bring to light several critical market dynamics that traders and investors may need to reassess. His analysis points to increasing correlations between Bitcoin and broader capital markets, specifically with indices like the S&P 500. This shift indicates that Bitcoin may be transitioning from its perception as a hedge against economic instability to a more conventional risk asset. The historical correlation he identifies, with a 0.6 correlation coefficient over 48 months with the S&P 500, suggests this digital currency's speculative nature is aligning more closely with traditional market volatilities. McGlone's warning contrasts Bitcoin's performance with that of gold and other traditional assets, which he claims continue to outperform Bitcoin due to their lower volatility and greater market stability. Such insights from a Bloomberg analyst underscore the importance of reevaluating Bitcoin’s position within a balanced portfolio, especially for those counting on its 'store of value' attributes. The reassessment is also pertinent given recent market conditions where Bitcoin’s volatility has seen new lows. As Bitcoin becomes more entwined with global financial systems, it could lose some of its distinctiveness as a standalone digital asset, impacting how investors perceive its value proposition. Investors could become more cautious, possibly leading to a reevaluation of risks and reassessment of crypto exposure. Ultimately, McGlone’s analysis highlights the evolving narrative of Bitcoin's identity within the financial landscape, and urges stakeholders to prepare for increased market volatility.
[Block Media Lee Jeong-hwa Reporter] Although Bitcoin's price reached an all-time high this year, not everyone believes this rally will continue. A cryptocurrency analyst warns that Bitcoin, the world's largest cryptocurrency, might experience a steep price crash, potentially losing most of its recent gains and falling to levels unseen for years. Concerns of a 90% decline in Bitcoin arise. On the 5th, according to NewsBTC, during a recent interview with the YouTube financial news channel 'David Lin Report,' Bloomberg Intelligence Senior Commodity Strategist Mike McGlone issued a stern warning to Bitcoin investors. Known for his reputation of accurately predicting key price levels, he forecasts that Bitcoin could lose more than 90% of its current gains in this market cycle, dropping to $10,000 (13.94 million Korean won). McGlone explained that on December 6th last year, Bitcoin surpassed $100,000, marking a significant psychological milestone. However, he assessed that this was more of an overheating signal than an indication of long-term bullishness. Investors analyzed this as a 'sell at the peak' case where people were swept up in mass excitement. Since surpassing $100,000, gold has risen about 30%, while Bitcoin has only achieved an 8% increase. During the same period, major stock market indices like the S&P 500 also showed a moderate uptick, and he noted that digital assets did not exhibit a clear advantage. Additionally, McGlone highlighted increasing correlation between Bitcoin and the stock market, with a 48-month correlation coefficient of 0.6 with the S&P 500. He explained this as Bitcoin transforming from an independent store of value into a risk-on asset. Interpreting volatility increase as a signal for decline, McGlone focused on changing volatility signals in the Bitcoin market. In August, the Volatility Index (VIX) recorded a yearly low of 14.2, and at the same time, Bitcoin hit a new high. However, subsequent increased volatility hinted at potential changes in market sentiment. McGlone suggested these signals indicate an entrance into a Bitcoin correction phase, forecasting gold’s continued outperformance over Bitcoin and other speculative assets. Questioned about the possibility of Bitcoin reaching $1 million during the interview, McGlone negated this, emphasizing that the current market environment does not support such an outcome. McGlone explained that when Bitcoin hovered around $10,000, the market sentiment was very negative, providing ideal conditions for a long-term upward rally. However, above $100,000, he analyzed that the market entered an overbought state, making it difficult to maintain additional upward momentum. He added that excessive speculative exposure made Bitcoin more susceptible to correction risks rather than further growth.
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The Japanese Financial Services Agency proposes strengthening virtual asset regulations, considering raising them to securities trading law standards.
2025-09-04T23:33:55.000Z
The Japanese Financial Services Agency (FSA) is proposing a shift in regulations for digital assets, moving from the Payment Services Act to the Financial Instruments and Exchange Act. This change aims to enhance investor protections and make digital asset regulation more consistent with securities regulation. The proposal is not yet legally binding but represents a move towards stricter oversight of digital currencies in one of the world's major cryptocurrency markets. Such regulatory tightening could significantly impact how digital assets are traded and managed in Japan and may influence global regulatory trends. The FSA noted that the issues faced by digital assets often overlap with those typically handled under traditional financial regulations, suggesting a need for aligned regulatory frameworks. This move is part of a broader effort to address concerns over non-licensed operations, unclear whitepapers, and other risks associated with the burgeoning digital assets sector.
Japan's FSA proposing a shift in digital asset regulation from the Payment Services Act to the Financial Instruments and Exchange Act is a significant development in the crypto space. As one of the largest markets for cryptocurrency trading, Japan's regulatory stance often sets precedents that resonate globally. The proposed changes aim to bridge gaps that exist between how digital assets and traditional financial instruments are regulated, reflecting a growing need to align digital asset oversight with traditional securities frameworks. Such a shift underscores the FSA's commitment to increasing investor protection and ensuring greater market integrity in the digital space. As the sector continues to grow, issues such as unregulated operations and insufficient transparency in whitepapers have highlighted vulnerabilities that traditional financial regulations could potentially mitigate. This move by Japanese regulators reflects similar actions worldwide, where governments attempt to rein in the rapidly evolving crypto markets, balancing innovation and consumer protection. For industry participants, such regulatory clarity could provide a more stable operating environment, leading to increased institutional involvement and investment. However, this might also slow innovation as more stringent rules could make it harder for new projects to launch. In the broader context, Japan's regulatory evolution might prompt other countries to re-evaluate their own frameworks, promoting greater global regulatory harmonization and possibly leading to more comprehensive international standards.
[Block Media reporter Lee Eun-seo] Japan's Financial Services Agency (FSA) has proposed significantly strengthening regulations on digital assets. According to CoinTelegraph on the 4th (local time), the FSA suggested transferring digital asset regulation from the current "Payment Services Act" to the "Financial Instruments and Exchange Act" in its report. The aim is to bolster investor protection and enhance consistency with securities regulations. The FSA noted that issues arising from digital asset investments are similar to areas traditionally covered by the Financial Instruments and Exchange Act, and applying the same regulatory framework and enforcement mechanisms could be appropriate. The issues pointed out in the report include unclear white papers, inaccurate disclosures, unlicensed operations, investment fraud, low risk tolerance, and exchange security problems. The report stated, "Applying the enforcement tools of the Financial Instruments and Exchange Act to these digital asset issues is appropriate." However, this report is an internal review document without legal binding force, intended to present ideas to the Financial System Council by the FSA Secretariat. Ultimately, the government will decide on any regulatory revisions. Spread of Digital Assets in Japan The FSA assessed in the report that the importance of digital assets in Japan is growing. The number of domestic digital asset exchange accounts has exceeded 12 million, with deposits amounting to 5 trillion yen (approximately 33.7 billion dollars or about 4.69 trillion won). This means that one in ten citizens holds a digital asset account. However, the agency pointed out that more than 80% of personal accounts have small transactions holding less than 675 dollars. Among experienced investors, 7.3% own digital assets, a figure surpassing the proportion of FX or corporate bond holdings. Additionally, 70% of Japanese digital asset holders are middle class, and 86% trade with expectations of long-term price increases. This report is interpreted as a follow-up move to Finance Minister Katsunobu Kato's comment in late August that “digital assets carry high volatility risks but can serve as a diversification tool if an appropriate investment environment is established.” Direction of Regulatory Strengthening Currently, under the Financial Instruments and Exchange Act, digital assets are considered financial instruments if used as underlying assets in derivatives. The FSA explained that if this is fully applied, it could impose disclosure obligations during public offerings and secondary distribution on digital asset issuers, thereby resolving information asymmetry between issuers and investors. It could also regulate digital asset trading and brokerage activities, prohibit unfair trading, and provide enforcement tools such as emergency injunctions against unlicensed operations.
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DeFi TVL surges 41% in Q3, surpassing 223 trillion won.
2025-09-04T23:32:57.000Z
In Q3 2023, the total value locked (TVL) in decentralized finance (DeFi) saw a significant increase of 41%, surpassing $160 billion. This growth was primarily driven by strong performances from Ethereum and Solana, with platforms like Aave and Lido seeing substantial increases in activity and funds. US regulatory developments have also played a role in boosting DeFi activity, with Solana leading the pack in decentralized application revenue. The notable rise reflects a dynamic shift in the cryptocurrency market, with DeFi securing a more integral position in the financial ecosystem. Furthermore, Solana's consistent outperformance in dApp revenue indicates its growing influence in the DeFi space. This increase in DeFi activity points to a robust expansion and potential future growth within the cryptocurrency sector.
The recent surge in DeFi's total value locked (TVL), which rose by 41% in the third quarter of 2023, demonstrates a significant transformation occurring within the cryptocurrency industry. Ethereum and Solana, the primary drivers of this growth, have strengthened their positions as key players in the DeFi ecosystem. Ethereum's TVL increase to almost $135 billion and Solana's impressive 10% growth underscore their critical roles in advancing blockchain technology's application in finance. Platforms like Aave and Lido, which have contributed to the sector's expansion by recording substantial TVL gains, highlight the increasing trust and reliance on decentralized financial services. This particularly reflects a seismic shift from traditional financial systems to blockchain-based solutions, offering more transparent and efficient alternatives. Moreover, regulatory changes in the US that favor DeFi adoption have catalyzed this sector's growth, with Solana leading in decentralized application revenue. Solana’s consistent outperformance against other networks in dApp revenue generation showcases its growing dominance and potential long-term impact in the crypto market. The expanding TVL figures are indicative of the broader acceptance and integration of DeFi solutions in mainstream financial dealings. As the cryptocurrency sector grapples with regulatory challenges, the persistent growth in DeFi underscores its resilience and adaptability, hinting at its continued evolution and maturation. Consequently, DeFi’s trajectory seems poised for sustained expansion, signaling promising opportunities for investors and innovators alike.
[Block Media's Jung-hwa Lee] According to foreign media Cryptopolitan, the total value locked (TVL) in the decentralized finance (DeFi) ecosystem increased by 41% in the third quarter of 2023, surpassing $160 billion (223 trillion and 400 billion won). This marks the first significant growth in the DeFi sector since May 2022. The growth was led by Ethereum and Solana, which saw increases of 50% and 30%, respectively. Ethereum’s TVL rose by 50% from $54 billion (75 trillion and 276 billion won) to $96.86 billion (135 trillion won). Meanwhile, Solana recorded a TVL increase from $10 billion to $11.5 billion with a growth rate of over 10%. Notably, Solana has continuously outperformed L1 and L2 networks in terms of revenue amidst high user engagement and increased on-chain activities in the decentralized application (dApp) sector. Ethereum achieved a TVL of $96.86 billion (135 trillion won)... accelerating the growth of DeFi protocols. Individual platforms also contributed to this surge in TVL, recording all-time high fund inflows. The lending protocol Aave saw a 58% increase in its TVL since July, now holding over $41 billion. Lido recorded approximately $39 billion, up by 77% due to increased demand for liquid staking derivatives. Benefiting from Ethereum's price increase, EigenLayer grew by 66% since July, with its TVL exceeding $20 billion. The fact that Solana consistently leads L1 and L2 services in dApp revenue is noteworthy. On September 4, SolanaFloor highlighted Solana’s ongoing success and emphasized the competitiveness of the ecosystem on Twitter. Cryptocurrency price increases also positively impacted the overall growth of the DeFi ecosystem. Ethereum hit an all-time high of $4,946 on August 24, up 82% from early July. Bitcoin set a record high of $124,457 on August 14, rising by 14% over the same period. Solana leads the dApp ecosystem with $217.39 million in revenue. Solana is rapidly growing in the L1 blockchain ecosystem, recording the largest revenue in the decentralized app sector. According to DefiLlama, Solana recorded $217.39 million in revenue last month, while Ethereum earned $87.76 million. Solana's Q2 revenue reached $570 million, accounting for about 46.3% of total dApp revenue. Developer confidence in the Solana ecosystem remains high. A well-illustrated example was the Colosseum hackathon held in July, which attracted over 10,000 participants and unveiled the third accelerator program. DeFi ecosystem activity has been further stimulated by recent US regulatory policies. In July, the House passed three major bills, including the GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act. In particular, President Trump supported pro-crypto policies by signing the GENIUS Act, aimed at regulating stablecoins. However, Democrats criticized the bill, claiming it conflicts with the private interests of the Trump family. The rise in DeFi’s TVL increased from $86 billion in April to $126 billion in mid-July, marking a 46% rise over three months. Solana maintained its lead for five consecutive months, generating $570 million in revenue during Q2. Doug ColKitt noted the positive market changes, stating that this Q3 performance “demonstrates that DeFi is gaining momentum again.”
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Final Viewpoint
Recent developments and forecasts in the cryptocurrency and Bitcoin markets point towards a period of both growth and caution. The significant 41% increase in DeFi's total value locked, primarily driven by Ethereum and Solana, signals a dynamic shift towards decentralized finance, suggesting robust future potential for growth in the cryptocurrency sector. Regulatory movements, like Japan's proposed changes, indicate a tightening oversight globally, aiming for alignment with traditional financial frameworks, which could provide a more stable environment for digital assets but might dampen innovation temporarily. However, amid these positive indicators, caution is advised as analysis from Bloomberg’s Mike McGlone predicts a potential significant price correction for Bitcoin, with high volatility and market dynamics increasingly tethering Bitcoin's behavior to traditional stock markets. This underscores a potential shift in its perception from a stable store of value to more of a risk asset. Despite these warnings, infrastructure developments such as Fireblocks' stablecoin payments network highlight ongoing institutional interest and could enhance mainstream adoption and usage of cryptocurrencies. Within the last week, Bitcoin's price has fluctuated between $107,463 and $112,575, settling recently around $110,868 after some volatility. Over the past 24 hours, Bitcoin’s price showed a minor decline, indicating the persistent volatility that aligns with the broader market sentiments of risk and caution raised in recent analyses. Given these insights, while immediate caution in Bitcoin investment is advised, particularly with forecasts of potential price drops, the infrastructure and regulatory shifts create a foundation for potential growth and stability in the long term. Therefore, Bitcoin could face near-term declines or volatility, but structural developments in the crypto market may support a more positive trend in the longer run, providing a balanced risk-reward scenario for investors.
Viewpoint