Token Chronicle - Week 4 May 2025

Top cryptos

Meme of the week

Market Sentiment:

Market update: A minor correction week after reaching a new BTC all-time high at $112K, with BTC currently at $105K today. The drop is partly due to last Wednesday’s rather pessimistic FED meeting, which highlighted persistent inflation and economic uncertainties (leading to short-term profit-taking). However, analysts generally expect the rally to resume quickly, given the growing institutional demand and a wave of corporate strategic reserve announcements. An important macro event to watch this week: US PCE data on Friday.

Main points this week:

International News

1. Chinese Stablecoins via Hong Kong Soon? The “Stablecoins Bill” Has Been Passed: Hong Kong has taken a new step in cryptocurrency regulation by passing its “Stablecoins Bill” on May 21. The law imposes strict regulation on stablecoins and reflects Hong Kong's ambition to become Asia’s digital finance hub. The Legislative Council passed, in a third reading, a law establishing a mandatory licensing regime for issuers of fiat-backed stablecoins. The regulation, supervised by the Hong Kong Monetary Authority (HKMA), enforces rigorous management requirements: full reserve backing, segregation of client assets, and redemption guarantees. “Hong Kong’s new stablecoin policy sets a global benchmark by requiring full reserve backing, strict redemption guarantees, and HKMA oversight. It ensures institutional-grade reliability for traders while positioning Hong Kong as a leader in regulated digital finance.”

2. 50% Tariffs on the EU: Donald Trump Rekindles Trade War, Markets Plummet
   President Donald Trump has reignited trade tensions by announcing massive tariff measures against the European Union, which he claims was “primarily created to exploit the United States.” The announcement immediately roiled financial markets. However, a phone call took place between European Commission President Ursula von der Leyen and Trump this Sunday. Following that, Trump stated he would give Europeans more time, delaying the tariffs’ implementation until July.

3. France: Deblock Obtains the First MiCA License Issued by the AMF
   The neobank Deblock becomes the first company to receive a MiCA license from France's Financial Markets Authority (AMF). France thus joins the ranks of countries that have issued this key authorization, which is a prerequisite to operate crypto businesses across the EU.

4. IMF Wants to Ensure El Salvador Stops Buying Bitcoin (BTC) – Bukele Pushes Back
   Tensions have risen again between the International Monetary Fund (IMF) and El Salvador. The IMF wants the country to stop buying Bitcoin, especially as part of a $1.4 billion loan agreement. But shortly after this agreement was publicized, El Salvador’s “Bitcoin Office” announced the purchase of 8 additional BTC—worth about $871,600 at current prices.

5. “Disappointed” by Donald Trump’s Policy, Elon Musk Returns to Business
   Is this the end of an era for the world’s richest man? Elon Musk appears set on focusing on his businesses. He criticized Trump’s economic policy, stating that a recently passed spending bill undermines his work with DOGE. Musk now intends to focus on Tesla and SpaceX. He’ll still be “remotely” involved with DOGE but will no longer lead it. “I was frankly disappointed to see the massive spending bill, which increases the deficit instead of reducing it, and undermines the work the DOGE team has been doing.”

6. U.S. Court Blocks Trump’s Tariffs – Markets Rebound
   The U.S. International Trade Court ruled that Donald Trump exceeded his authority by unilaterally imposing tariffs. The decision is a blow to the president but a relief to financial markets, which are showing signs of recovery. The ITC ruled that while tariffs are legal, Trump’s unilateral approach was not; such decisions must come from Congress. Given that tariffs are central to Trump’s economic policy, further legal twists are likely. Tariffs Blocked, Then Reinstated: A Judge Restores Trump’s Tariffs: In a legal whiplash, a judge from the U.S. Court of Appeals has reinstated Trump’s tariffs after they were previously blocked. While a win for Trump’s administration, the legal turmoil could weaken his position in ongoing negotiations with Europe.

7. Central African Republic to Tokenize Land Using a Memecoin
   The Central African Republic (CAR) plans to sell land through tokenization using a government-backed memecoin. Back in 2022, CAR launched the controversial “Sango” crypto project, which was eventually abandoned. Inspired perhaps by Trump’s memecoin, President Faustin-Archange Touadéra launched “CAR” crypto in February. The lands for sale are about 50 km west of the capital Bangui and may be intended for mining operations. The Russian paramilitary group Wagner, accused of human rights abuses, is already active in CAR in gold and diamond ventures. Another red flag: 76% of CAR token liquidity is held by just 4 addresses.

8. Nigel Farage Proposes a “Crypto Revolution” Bill in the UK
   At Bitcoin 2025 in Las Vegas, Reform UK leader Nigel Farage introduced a bold bill aimed at making the UK a global crypto hub. The plan includes tax cuts, a Bitcoin reserve at the Bank of England, and protections against bank account closures. The legislation seeks to modernize crypto regulation in the UK. Key measures include slashing the capital gains tax on digital assets from 24% to 10%.

9. NY Mayor Eric Adams called for the end of the BitLicense at Bitcoin 2025, urging crypto businesses to return to New York City. Adams also proposed the creation of a BitBond, a municipal bond backed by bitcoin, to raise capital and offer tax advantages.

10. During a fireside chat with Gemini co-founders Cameron and Tyler Winklevoss at Bitcoin 2025 on Tuesday, President Trump's crypto czar David Sacks said the U.S. could expand its Strategic Bitcoin Reserve using budget-neutral strategies like repurposed government surpluses without adding debt or taxes. Sacks outlined the pro-crypto policies already enacted by the Trump administration, including banning CBDCs, pardoning Ross Ulbricht, and dismantling Operation Choke Point 2.0. He said the administration is aiming to finalize its crypto agenda by August, with key legislation on stablecoins and market structure expected to pass in the coming months.

11. Dubai just became the first government in the world to tokenize real estate on the XRP Ledger, and over 3,000 people have already signed up. The Dubai Land Department's pilot program launched in March, allowing UAE residents to buy fractional ownership of government properties for as little as 2,000 dirhams. They specifically chose XRP Ledger over Ethereum or any other blockchain.

12. Kazakhstan's president announced "CryptoCity" - a pilot zone where cryptocurrencies can be used for all payments including goods, services, and real estate. The proposed location is Alatau, which already hosts scientific institutions and a special economic zone. Officials want restaurants, cafes, and property purchases conducted entirely with crypto.

Compliance / Regulation / Cybersecurity

1. $223 Million Hack on Sui: Is the Blockchain at Risk?
   Cetus, a major protocol on the Sui blockchain, suffered a large-scale hack resulting in over $223 million in losses. The attacker moved funds to Ethereum and converted much of it into ETH. Cetus, previously a top-3 protocol by TVL on Sui per DeFiLlama, may fully reimburse users. However, the return of $162 million in frozen funds depends on an unprecedented governance vote involving all SUI validators and stakers. This marks a significant debate around blockchain governance, security, and decentralization.

2. “Deliberately Misleading” – SafeMoon CEO Convicted, Faces 45 Years in Prison
   SafeMoon CEO Braden Karony has been found guilty of defrauding investors and could face up to 45 years in prison. He was convicted of multiple counts, including wire fraud and money laundering, for misappropriating millions in investor funds.

3. Coinbase Data Leak Triggers New Lawsuit
   A significant data leak could cost Coinbase dearly. The company faces a class-action lawsuit from shareholders who allege it failed to prevent a sharp stock drop. The lawsuit seeks damages for investors who bought COIN stock between April 14, 2021, and May 14, 2025. The leak has already cost Coinbase between $180 million and $400 million in compensation and repairs.

4. Bybit Gets MiCA License — A New Crypto Giant Enters Europe
   Bybit, one of the world’s largest crypto exchanges, has received its MiCA license, allowing it to operate across the EU without individual country approval. The license—issued in Austria—covers services such as asset custody, crypto-fiat exchange, wallet services, and trading. It was granted under stringent requirements, including capital adequacy, AML compliance, and client protection.

5. SEC Drops Case Against Binance
   After two years of legal proceedings, the SEC has officially dropped its lawsuit against Binance.

6. White House crypto czar David Sacks said the GENIUS Act could unlock trillions of dollars for the U.S. Treasury by legitimizing stablecoins, expecting the bill to pass with bipartisan support. "We already have over $200 billion in stablecoins — it's just unregulated," he told CNBC on Wednesday. "I think that if we provide the legal clarity and legal framework for this, we could create trillions of dollars of demand for our Treasurys practically overnight, very quickly." Even ahead of the bill, USDT stablecoin issuer Tether has demonstrated considerable demand, recently nearing $120 billion in U.S. Treasury securities and surpassing Germany as the 19th largest global holder. Meanwhile, JPMorgan analysts cast doubt on such trillion-dollar stablecoin forecasts despite advancing regulation, describing the expectations as "far too optimistic."

7. The SEC acknowledged Canary Capital's proposal for a staked Tron (TRX) ETF late Thursday, marking the first public step in the review process. The Tron proposal follows Canary's filings for multiple altcoin-based ETFs in recent months, including applications for Sui, Hedera, and Litecoin products. The SEC simultaneously delayed decisions on several other crypto ETFs on Thursday, including proposals for Bitwise's spot XRP ETF, Coinshares' spot XRP and Litecoin ETFs, and Fidelity's in-kind Bitcoin ETF filing. Bloomberg ETF analyst James Seyffart said the delays were expected, adding that the SEC rarely issues early approvals and final decisions likely won't come until Q4.

8. India’s Supreme Court has urged the government to establish a clear policy on cryptocurrency regulation. The call came during a case involving illegal Bitcoin trading, where the defense argued that crypto trading is not illegal following the Court’s 2020 decision striking down the RBI’s 2018 crypto banking ban. The justices described current Bitcoin activity as a "refined way of Hawala" and warned of economic risks from unregulated crypto markets. Despite India’s high crypto adoption rate, regulatory clarity remains lacking. A government discussion paper on crypto policy, initially expected in September 2024, is still pending as authorities reassess their approach in light of evolving global stances.

9. Last week, South Korea’s Financial Services Commission (FSC) and Korea Financial Intelligence Unit (KoFIU) introduced new anti-money laundering (AML) requirements for institutional crypto transactions involving entities like law enforcement agencies and universities. Starting June 1, these institutions can liquidate crypto holdings, but crypto exchanges are barred from using their own platforms to conduct such trades. Exchanges must verify the source and purpose of funds, assess AML risks, and reconfirm client details at least annually. The Korea Federation of Banks and DAXA will issue specific guidelines soon. Phase 2 of Korea's institutional crypto roadmap will expand access to listed firms and professional investors by late 2025, with more AML rules forthcoming.

10. Last week, AUSTRAC and the Australian Federal Police seized AUD 4.5 million (USD 2.9 million) in assets from a Queensland man suspected of involvement in a 2013 hack of a French crypto exchange, which stole 950 BTC — now worth around USD 100 million. The action followed intelligence from Luxembourg in 2018 about suspicious Bitcoin movements and coordination with the U.S. Treasury’s Financial Crimes Enforcement Network. Using Australia’s Proceeds of Crime Act, authorities were able to confiscate the assets without laying criminal charges, applying a civil standard of proof. A Queensland District Court has officially ordered the asset forfeiture.

11. Last week, U.S. and international authorities launched Operation RapTor, the largest coordinated darknet takedown to date. Spearheaded by the U.S. DOJ’s JCODE team and Europol, the operation led to 270 arrests across 10 countries, and seizures totaling $200 million in cash and crypto, 2+ metric tons of narcotics, and 180 firearms. A major target was Incognito Market, a darknet platform tied to over $100 million in drug sales, whose admin Rui-Siang Lin pleaded guilty in U.S. court. The case underscores how blockchain tracing and public-private partnerships can overcome even privacy-focused tools like Monero. Authorities continue to exploit chokepoints in crypto-to-fiat conversion, reinforcing the need for real-time coordination with crypto exchanges to combat cyber-enabled crime.

12. Thailand's Securities and Exchange Commission announced it will block access to Bybit, OKX, CoinEx, 1000X, and XT starting June 28 for operating without licenses. The regulator said the ban aims to protect investors and curb money laundering through unregistered crypto platforms. OKX responded by emphasizing its commitment to compliance and cooperation with global regulators. The move follows Thailand's broader push to tighten crypto oversight amid plans to issue a government-backed investment token.

13. Bubblemaps launched "Time Travel" - analytics that reconstruct token distribution history to identify insider activity and coordinated wallet behavior. The tool reveals concentration patterns in token holdings, helping detect potential rug pulls before they execute. "Magic Nodes" feature uncovers hidden wallet connections among token holders to spot coordinated manipulation.

Traditional Finance

1. JPMorgan, BofA, Citigroup, and Others Consider Joint Stablecoin Launch
   Major U.S. banks are exploring a joint dollar-based cryptocurrency as U.S. regulatory clarity improves. A common bank-backed stablecoin would allow institutions to use blockchain benefits while curbing fund outflows to non-bank stablecoins. The U.S. has yet to make concrete progress on a central bank digital currency (CBDC).

2. BNP Paribas Tokenizes Money Market Fund Shares on Blockchain
   Continuing its blockchain initiatives, BNP Paribas Asset Management, in partnership with Allfunds Blockchain, has launched tokenized money market fund shares. “This project gave us key insights into the differences between digital representations of traditional fund shares and native tokens—an essential step for realizing greater benefits. Tokenizing money market funds can expand access to more investors and offer liquidity via instant trading and settlement.”

3. Circle Confirms IPO — USDC Issuer to Go Public
   After years of planning, Circle will go public through an IPO on the New York Stock Exchange (NYSE) under the ticker CRCL. Major banks like Goldman Sachs, Barclays, Deutsche Bank, and Société Générale are involved. The IPO includes 24 million shares priced between $24 and $26, with 60% sold by existing shareholders and the rest issued by Circle.

4. Standard Chartered Global Head of Digital Assets Research Geoffrey Kendrick expects Solana to reach $275 by the end of 2025 and $500 by 2029 but sees it underperforming Ethereum in the next few years. Kendrick said Solana's overreliance on memecoin trading stress-tested its infrastructure but has peaked, and new use cases will take two to three years to scale. The analyst sees Ethereum widening its lead over Solana by 2027, projecting an ETH-SOL ratio increase from 15 to 17 before narrowing later.

5. The world's largest asset manager wants 10% of Circle's upcoming IPO. BlackRock is eyeing Circle's $624 million fundraising round, while ARK Invest wants $150 million worth of shares. Orders are coming in for multiple times the available shares.

6. Cantor Fitzgerald Asset Management announced plans to launch an investment fund combining bitcoin gains with price drop protection coming from investments in gold. This marks Cantor Fitzgerald's deeper venture into bitcoin products after debuting a bitcoin lending business.

Tech News

1. Will Tether Launch a New Stablecoin in Response to the U.S. Genius Act?
   As the U.S. advances its stablecoin regulations, Tether signals readiness to adapt. The company is considering launching a new U.S. dollar-backed stablecoin aimed at the American market to attract regulators and institutional investors—helping Tether maintain its global lead.

2. Ethereum: Over 150,000 Validators Support Increasing Gas Limit
   More than 150,000 Ethereum validators (about 15% of the network) back a proposal to increase the gas limit per block from 36 to 60 million units. This would allow more transactions without a major protocol upgrade and ease pressure on Ethereum’s Layer 1, which still sees heavy use despite the rise of Layer 2s like Arbitrum and Base.

3. Circle's new Payments Network (CPN) enables financial institutions to settle transactions on public blockchains using stablecoins. The network supports B2B payments, cross-border remittances, treasury operations, and mass payouts – directly challenging traditional international transfer systems. This infrastructure positions stablecoins as essential financial rails rather than a part of a speculative asset class.

4. MetaMask announced on Tuesday that its Solana integration was live, meaning that users can now transact on the second-largest smart-contract platform and interact with Solana-based applications through the wallet. The integration is currently only on desktop, but is slated to launch on the MetaMask mobile app in the coming weeks, the company said. MetaMask is the Ethereum network's most popular browser wallet, with over 100 million annual users.

Adoption:

1. FIFA to launch its own layer-1 blockchain on Avalanche (AVAX):
   A further step for FIFA. The football federation has announced the launch of its own layer-1 blockchain on Avalanche (AVAX). The FIFA Blockchain will be designed to offer collectible items, in other words, non-fungible tokens (NFTs). The idea is to find new ways to interact with football fans.

2. Paying taxes in Bitcoin in New York? The mayor is determined to make it a reality:
   New York City Mayor Eric Adams continues his ambition to turn the metropolis into a major hub for blockchain innovation. At the first NYC Crypto Summit, he announced the creation of a cryptocurrency advisory council, aimed at attracting talent in the sector to gradually integrate blockchain technology into municipal services.

3. The Blockchain Group accelerates its Bitcoin strategy: over €63 million in convertible bonds issued in BTC:
   The Blockchain Group makes a bold move: the French company announced the issuance of convertible bonds into shares totaling €63.3 million, fully subscribed in bitcoin. Announced on May 26, 2025, the stated goal is to accelerate its Bitcoin Treasury Company strategy and become a leading BTC accumulator in Europe. As a reminder, The Blockchain Group had already expressed its intention to hold 1% of the total Bitcoin supply by accumulating tokens over the next eight years — representing over 170,000 BTC.

4. It’s official: Trump Media will invest $2.5 billion in Bitcoin:
   The revelations from the Financial Times have turned out to be true: Trump Media & Technology Group will indeed invest billions in crypto. And not just any crypto — Bitcoin. The massive amount is aimed at a move both symbolic and strategic: to create one of the largest Bitcoin reserves held by a publicly listed company. The operation combines $1.5 billion raised through equity and $1 billion via 0% convertible bonds, with a 35% premium on the stock price of TMTG, which trades under the ticker DJT.

5. $425 million to buy ETH — This NASDAQ-listed company is creating an Ethereum treasury:
   SharpLink, a NASDAQ-listed company, is about to complete a $425 million securities offering and will use the proceeds to create an Ethereum (ETH) treasury. The company, which trades on NASDAQ under the symbol SBET, specializes in marketing services for bookmakers and online casinos. Its clients include Unibet and Bwin. Note that the entire $425 million will not necessarily be used solely to purchase Ether. While that is the primary goal, the amount will also serve to create a working capital fund and cover “other general needs.”

6. GameStop buys half a billion dollars worth of Bitcoin (BTC):
   Today, GameStop began executing its new Bitcoin treasury strategy by purchasing 4,710 BTC.

7. Bitcoin Treasury: This publicly traded Norwegian company joins the trend:
   Continuing the Bitcoin treasury trend, publicly listed crypto firm K33 is entering the space. The company raised 60 million Swedish kronor — equivalent to €5.51 million. Notably, although it is a Norwegian company, the parent company of K33 is listed on the Nasdaq First North Growth Market in Stockholm. Of the 60 million SEK raised, 25% came from equity, while the remaining 75% was financed through the issuance of convertible bonds.

8. “Bitcoin embodies the future” – Paris Saint-Germain (PSG) adopts Bitcoin as a reserve asset:
   It is the first major football club to adopt Bitcoin. As Paris Saint-Germain prepares to play in the Champions League final this Saturday, it made a surprise announcement: it has added BTC to its reserves. Bitcoin adoption is the latest in a series of crypto-related decisions by the club. For several years now, PSG has used a “fan token” and has also launched NFT collections. But it was a partnership with the Bitpanda exchange platform, launched last January, that gave new momentum to the club’s crypto ambitions.

9. Bergen County, NJ plans to digitize all property deeds on the Avalanche network under a five-year agreement with blockchain software firm Balcony. The initiative aims to simplify and secure property record management for nearly a million residents across 70 municipalities. The move aligns with a broader trend of tapping blockchain rails for record-keeping of all kinds of assets for operational gains, also known as tokenization.

10. Canada-listed investment firm Sol Strategies filed a preliminary prospectus with local securities regulators to raise up to $1 billion to further its Solana-focused investment portfolio. CEO Leah Wald said the filing offers capital flexibility as Solana ecosystem opportunities continue to grow. However, the company noted that it currently does not have immediate plans to issue securities and may never pursue such an issuance. The firm recently tapped a $500 million convertible note facility and used the first $20 million tranche to buy over 122,000 SOL. Since rebranding and pivoting from Bitcoin to Solana-based investments, Sol Strategies' stock has soared more than 2,000%.

Partnerships and Funding:

1. SwissBorg expands its Meta-Exchange with Hyperliquid and lists the HYPE crypto:
   SwissBorg continues to strengthen its on-chain integration strategy by adding Hyperliquid, one of the most prominent DEXs at the moment, to its liquidity aggregator — the Meta-Exchange (MEX). This development also allows the crypto platform to offer the $HYPE token, which had so far been very difficult to access on centralized platforms.

2. Elon Musk’s AI Grok expected to arrive on Telegram this summer:
   On X, Pavel Durov announced that a preliminary agreement had been reached with Elon Musk’s AI startup, xAI, to integrate Grok into Telegram. However, some caution is warranted, as Elon Musk commented that “no agreement has been signed.” Pavel Durov acknowledged that it is a preliminary agreement and that formalities are underway. The deal will also have financial implications for both companies, as Telegram is expected to receive the equivalent of $300 million in equity in xAI, while xAI will receive 50% of the subscription revenues generated via Telegram.

3. Crypto exchange Kraken is set to launch 24/7 tokenized stock and ETF trading for non-U.S. users, starting with over 55 assets, including Apple, Nvidia, and Tesla, through a partnership with Backed. The new "xStocks" product will also be integrated with certain Solana DeFi apps and be available to Kraken customers in Europe, Latin America, Africa, and Asia, according to the WSJ. Kraken co-CEO Arjun Sethi believes tokenized equities will eventually outgrow the $240 billion stablecoin market in size and impact. The move builds on Kraken's broader multi-asset push, including its recent $1.5 billion agreed acquisition of U.S. retail futures platform NinjaTrader.

4. Conduit has raised $36 million in a Series A funding round co-led by Dragonfly and Altos Ventures to expand its blockchain-powered cross-border payments platform. Sound Ventures, Commerce Ventures, DCG, and Circle Ventures, which is the investment arm of the issuer of the USDC stablecoin, also participated in the round. The startup integrates stablecoins, U.S. dollars, and local currencies to enable near-instant global transfers across major and local payment networks.

Disclaimer: The information disclosed here does not constitute an investment advice ; it is for informational purposes only and does not constitute investment advice. You should do your own research while investing in crypto and only invest money you are ready to lose.