Weekly Market Hotspots Review: The Resonance of Stablecoin U.S. Treasury and the Strategic Rise of Bitcoin in a New Cycle

This week, the cryptocurrency market has been quite volatile, with Bitcoin experiencing significant fluctuations multiple times, while Ethereum has performed relatively stable. Related tokens such as UNI and ETHFI have shown good performance. Trump's media technology group is purchasing Bitcoin through a $2.5 billion private placement, and Pakistan is establishing a national-level Bitcoin strategic reserve. The $5 billion repayment by FTX at the beginning of the week stimulated the market. Despite positive news on Friday regarding the SEC easing staking regulations, the market still saw a widespread decline, and the subsequent trend is worth watching.

In terms of hot topics, stablecoins remain the main focus of the market, becoming a key area for the U.S. government and global institutions; although there are no substantial benefits from the Bitcoin conference, mainstream opinions are worth noting; the relaxation of SEC regulations has created conditions for the staking sector and certain trading platforms to enter the U.S. market.

1. The trend of stablecoinization of U.S. Treasury bonds

1. A stablecoin issuer's IPO

On May 27, a stablecoin issuer announced the initiation of the IPO process, planning to list on the New York Stock Exchange. Two days later, a large asset management company stated its plan to subscribe for 10% of the company's shares.

Key details are as follows:

• The IPO is expected to begin trading on June 5, 2025.
• The company filed an IPO application with the SEC on April 1, 2025, and the prospectus was made public on May 27.
• The stock will be listed on the New York Stock Exchange.
• Plan to issue 24 million Class A common shares, with a price range of $24 to $26 per share.
• The IPO is expected to raise approximately $624 million, with a valuation of about $5.65 billion.
• Many well-known investment institutions have expressed interest in subscribing.

The stablecoin issued by the company currently has a market value of approximately $60.793 billion, accounting for 24.59% of the total stablecoin market, second only to another issuer's 62.12%. Since the beginning of this year, the market value of this stablecoin has grown by 38.44%, while another major stablecoin has only grown by 11.51%.

The company has been dedicated to its IPO for many years, closely related to its partner trading platform. The two companies share many similarities in business models, attracting investors, and other aspects. After the IPO, the company is expected to more easily obtain funding from the capital markets, attract more strategic investors, and potentially drive up the partner's stock price.

2. A well-known stablecoin issuer turns to emerging markets

On May 25, it was reported that the CEO of a well-known stablecoin issuer stated that despite the U.S. advancing stablecoin legislation, the company will still focus on overseas markets. Part of the reason is that its Bitcoin and collateralized assets may not meet the proposed regulatory standards.

Data shows that the collateral composition of major stablecoin issuers varies. Some have shifted from U.S. Treasuries to reverse repurchase agreements and cash, while others have moved from credit-risk assets to U.S. Treasuries. Reportedly, as of December 2024, the largest stablecoin issuer still invests 18% of its reserves in less liquid and higher-risk assets.

3. The Close Connection Between Stablecoins and U.S. Treasury Bonds

The business model of stablecoin issuers is extremely favorable to the issuers. Stablecoins are usually backed by cash and highly liquid assets at a 1:1 ratio. Issuers do not distribute the interest income from the reserve assets to the holders, but keep it for themselves, thereby obtaining substantial profits under favorable conditions.

The holdings of U.S. Treasury securities by the two major stablecoin issuers have reached as high as $116 billion, placing them among the top 20 direct holders of U.S. Treasuries, surpassing some sovereign nations. With the U.S. stablecoin bill on the verge of passing, more and more stablecoin issuers will become channels for the digital dollar to enter the global economy, enhancing the global accessibility of the dollar and expanding the reach of U.S. monetary policy.

The U.S. government has made it clear that it will use stablecoins to maintain the global reserve currency status of the U.S. dollar. Stablecoins share similarities with U.S. Treasury bonds in terms of safety, liquidity, collateral function, and sources of returns.

2. Bitcoin Conference

1. An important political figure from a certain country expressed their position at the meeting.

• Announced the end of the previous government's hostile policies and eliminated previous regulatory obstacles. Committed to establishing a national Bitcoin reserve within 100 days and promoting relevant legislative bills.
• Emphasize Bitcoin as a tool against inflation, policy risks, and financial censorship, as well as its potential as a strategic asset.
• Commit to creating transparent and innovative regulations for digital assets, criticizing the actions of previous regulators.
• Call on the crypto community to engage in politics and pay attention to the synergy between AI and crypto.

2. A senator from a certain country spoke.

• Discussed the importance of the market structure bill for the industry.
• Suggestion to exempt Bitcoin transactions below $600 from taxation.
• It is recommended that the United States purchase and hold 1 million Bitcoins to improve its financial situation.
• Emphasize the importance of Bitcoin to the economy and global defense.

3. A statement from a representative of a regulatory agency.

It indicates the possible establishment of a Meme coin regulatory committee to fill the regulatory gap.

Three, Policy Regulation

1. A certain regulatory agency in the United States clarifies that three types of PoS network staking activities do not constitute securities issuance

The agency issued a policy statement outlining the following staking activities that are not considered securities offerings:

1. Self-staking: Node operators use their own assets to participate in validation.
2. Third-party non-custodial staking: The asset owner retains control, only delegating verification rights.
3. Compliant Custodial Staking: The custodian strictly isolates client assets, not using them for operations or re-mortgaging.

The policy states that the network rewards obtained from the above staking activities belong to the consideration for validation services and do not meet the criteria for securities identification.

This move is beneficial for Ethereum and other PoS public chains, and the prices of related tokens and staking derivatives may rise.

2. A certain regulatory agency in the United States applies to withdraw the lawsuit against a certain trading platform

The agency submitted documents to the court requesting the dismissal of the lawsuit against a certain cryptocurrency trading platform and its former CEO. Both parties signed a joint dismissal agreement, which was submitted to the federal court. It is noteworthy that the dismissal is final, meaning the agency cannot file a lawsuit over the same allegations again.

This decision may create conditions for the trading platform to layout the US market, and its related ecological tokens are worth paying attention to.