USD Coin (USDC) is fiat-collateralized stablecoin that offers the advantages of transacting with blockchain-based assets while mitigating price risk. Each USDC is issued as an ERC-20 token on the Ethereum blockchain and is 100% collateralized by a corresponding USD held in accounts subject to regular public reporting of reserves.


USDC

Byron Gilliam

This is a segment from The Breakdown newsletter. To read more editions, <a href="https://blockworks.co/brand/the-breakdown">subscribe</a>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
&nbsp;“Without the need to trust a third party middleman, money can be secure and transactions effortless.”



— Satoshi
</blockquote>



Property rights are not sacrosanct in traditional finance.



Even in the US stock market — where shareholder rights are treated with near-religious reverence — a company’s management can sometimes forcibly divest an unwanted shareholder of their shares.



In 2009, for example, the struggling software firm Selectica used a poison pill defense to cut a single shareholder’s stake in half.



When the pill was triggered, all shareholders other than Versata, a hedge fund, received rights that effectively doubled the number of shares they owned.



In effect, this redistributed half of Versata’s share in the company to the company’s other shareholders.



Versata sued, but a Delaware judge sided with the company — proving that, under some circumstances, a board can seize a shareholder’s property much like a government invoking eminent domain.



Unlike eminent domain, however, the company doesn’t have to compensate the dispossessed owner.



It’s not done lightly.&nbsp;



Selectica had to prove in court that its action was a “proportionate” response to a threat posed by a hostile shareholder.



But the fact that it’s possible is part of what inspired crypto and decentralized finance: a new kind of financial system where property rights are enforced by code, not the whims of a Delaware judge.



On Friday, however, World Liberty Financial — a DeFi protocol that’s “governed by a distributed community of WLFI tokenholders” — effectively dispossessed a large token holder of their tokens.&nbsp;



Justin Sun’s substantial holding of WLFI was frozen (perhaps temporarily) when his tokens were added to a blacklist that prevents them from being moved.



In total, World Liberty <a href="https://x.com/worldlibertyfi/status/1964081166367035684">blacklisted 272 accounts</a> this weekend, mostly in an effort to stop phishing attacks — which is laudable, but not exactly in the spirit of not-your-keys-not-your-coins permissionless crypto.



Sun’s tokens, however, were frozen amid reports that he shorted WLFI tokens borrowed from an exchange he controls.



Someone at World Liberty took exception to this and froze Sun’s property in response — something they can do without consulting the “distributed community” of token holders that ostensibly governs the protocol.



TradFi executives don’t appreciate short selling either, of course.



Companies that feel attacked by short sellers will sometimes issue special dividends to complicate short positions, contrive to have large holders recall the shares they’ve lent out, or even lobby the government to ban the practice (as banks successfully did in 2008).



But crypto makes this so much easier: Smart contracts can give protocols the ability to stop their tokens from moving.&nbsp;



Few protocols grant themselves this ability, presumably because it’s counter to the spirit of a decentralized, permissionless financial system.



Blacklists are usually only found in centralized stablecoins, where issuers need the ability to freeze criminals’ funds at the request of law enforcement.&nbsp;



But a blacklist for tokens?



World Liberty might be unique in granting itself the ability to extinguish property rights with just a function call to blacklist(address).



This seems to contradict the spirit of its founding mission.



As World Liberty co-founder and CEO Zach Witkoff tells it, the project was inspired by a conversation he had with the Trump brothers, Eric and Donald Jr., shortly after their accounts were “terminated” by two of the largest US banks.&nbsp;



“So, we started discussing solutions, and the conclusion was that we needed a more democratized system,&#8221; he <a href="https://wublockchain.medium.com/wlfi-ceo-coo-in-conversation-dismantling-banking-hegemony-03546c1579f8">explained</a>. “The origin of World Liberty was to truly return financial control to the users.”



But not, evidently, to users of the World Liberty token.



The project’s <a href="https://static.worldlibertyfinancial.com/docs/intl/gold-paper.pdf">Gold Paper</a> states “WLF believes that the ability to transact privately and without intermediaries is a core American value.”



But World Liberty itself is an intermediary — and an unusually powerful one.



They did warn us.&nbsp;



Further down in the gold paper it cautions that in a “Material Adverse Event or Security Risk,” governance power can be “completely vested in the multisigs.”



This makes dispossessing an unwanted token holder much easier compared to executing a complex poison pill defense that a shareholder can appeal in a Delaware court of law.



Justin Sun, by contrast, can appeal the seizure of his property only to the court of social opinion: “My tokens were unreasonably frozen,” he <a href="https://x.com/justinsuntron/status/1963807543983263802">posted</a> on X after denying accusations of short selling.&nbsp;



That’s not how this alternative financial system was meant to work.



Just the opposite: World Liberty’s multisig appears to give its founders a level of control that TradFi founders can only dream of.



Traditional founders sometimes maintain control of their company with special voting rights, but how much easier is it when that control is baked into a smart contract?



World Liberty’s control appears to be absolute.



Their token, WLFI, is strictly for governance —&nbsp; “the sole utility of holding WLFI is governance of the WLF Protocol” — but World Liberty can ignore the decisions token holders make.



Late last year, WLFI holders <a href="https://snapshot.box/#/s:worldlibertyfinancial.com/proposal/0xce3ff6b195863c2217865ba6f028d2e163d9156a25cb35d923da3a5bc8479483">voted</a> to grant the Aave DAO “approximately 7% of the total supply of $WLFI tokens” (because World Liberty was originally conceived as a fork of Aave).



Eight billion tokens voted in favor of the proposal, vs. just 187,000 against.&nbsp;



Despite that overwhelming consensus, World Liberty appears to be reneging on the deal, <a href="https://x.com/WuBlockchain/status/1959288692159512991">reportedly</a> calling it “fake news.”



This, too, is a TradFi founder&#8217;s dream.



Crypto founders already have the magical ability to raise capital without surrendering a share of their future profits (by issuing governance tokens).&nbsp;



And in this case, the founders didn’t have to surrender any governance rights, either.



Could anything be a better deal than that?



To be fair, selling a token that people think of as equity but is actually more like a collectible is hardly unique to World Liberty — there are many such cases.



If anything, World Liberty deserves credit for being upfront about it: Just the fact that it employs a CEO tells you that, whatever idealistic language used in its gold paper, it’s more of a company than a protocol.&nbsp;



But blacklisting shareholders is a level of centralization that outdoes even TradFi.



“Tokens are sacred and inviolable,”&nbsp; Justin Sun <a href="https://x.com/justinsuntron/status/1963807543983263802">wrote</a> on X, ”this should be the most basic value of any blockchain.”



Sun is not generally known as a champion of decentralization, but he makes the case for it concisely.&nbsp;



“It’s also what makes us stronger and more fair than traditional finance,” he added.



World Liberty’s founders would presumably agree: The first line of their gold paper says World Liberty is “pioneering a new era of Decentralized Finance.”



So far, though, they’re making it look a lot like the old era.



But better.



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The Breakdown Newsletter

World Liberty Financial is perfecting TradFi

Kate Irwin

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/the-drop" target="_blank" rel="noreferrer noopener">subscribe</a>.



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You’ve probably heard about <a href="https://www.theeagleonline.com/article/2025/03/the-superhero-fatigue-epidemic-is-upon-us">superhero fatigue</a> — the oft-written-about concern that moviegoing audiences are burnt out on superhero movies as a genre because studios like Marvel and Warner Bros. have been churning out so many for over a decade now.&nbsp;



Some believe superhero fatigue has occurred in part because the quality of said movies and shows has declined overall over time. The movies start to blend together; a few gain loyal fans, while many others are quickly forgotten.&nbsp;



Sound familiar?



I can’t help but feel like this is also how many in crypto must be feeling about blockchains, too.&nbsp;



I’ll be honest: I think I have both superhero fatigue <a href="https://x.com/pixiekate13/status/1917344999727063263">and new-blockchain fatigue</a>.&nbsp;



Every time a new one is announced, I ask myself — how is this one actually different? Why does this one actually matter more than the last one that came before it?



And especially, when it comes to gaming: Is yet another gaming-focused blockchain really the answer to crypto gaming’s longstanding core issue of failing to appeal to game studios and gamers more broadly?&nbsp;



But maybe I’m asking the wrong questions. Crypto is magic internet money, after all. If creating a new blockchain generates cash, people will keep creating them. But that’s more a strategy for creating a flash in the pan — and less so for creating long-term viability.



You could argue that the teams behind these new blockchains don’t have to justify their creations. Maybe you believe in platitudes like a “the more, the merrier” philosophy, where “a rising tide will lift all boats.” The more chains to choose from, the higher chances of “mass adoption.”



Maybe you believe crypto will entirely replace the traditional financial system soon enough, so you believe that crypto’s TAM is massive and global. Its potential audience is everyone, because everyone uses money, so why not launch yet another chain?&nbsp;



And there are <a href="https://www.blog.udonis.co/mobile-marketing/mobile-games/modern-mobile-gamer#h2-0">billions</a> of gamers globally, so why not launch yet another gaming chain?



Or maybe, like me, you’re a bit more skeptical that more chains are really needed. New “consumer” chains appear to be more focused on finding devs to build with them than on actually appealing to consumers.&nbsp;



Blockchain teams focus on touting technical advantages and offering grants to game projects, while everyday consumers see very little actually being marketed to them to get them on board with the promised crypto gaming revolution.&nbsp;



Consider the “XRPL Gamechain,” built on the XRPL EVM sidechain the <a href="https://blockworks.co/news/b3-pc-startup-desktop-destroy-button">B3</a> team <a href="https://x.com/b3dotfun/status/1963299800562241538">announced</a> last week with XRPL Commons. It effectively brings B3’s Open App Layer to the XRP blockchain because XRPL Gamechain transactions will settle on XRP.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">welcome <a href="https://twitter.com/search?q=%24XRP&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$XRP</a> to B3&#39;s Open App Layer³ today, in partnership with <a href="https://twitter.com/xrpl_commons?ref_src=twsrc%5Etfw">@xrpl_commons</a>, B3 launches&#8230; ⚫ XRPL Gamechain on testnet 🕹️ XCADE &#8211; XRP&#39;s onchain arcade this effort marks the expansion of B3&#39;s appchain vision &amp; network. <a href="https://t.co/H4Jt4cThrF">pic.twitter.com/H4Jt4cThrF</a>&mdash; B3 🎮 (@b3dotfun) <a href="https://twitter.com/b3dotfun/status/1962917076802404807?ref_src=twsrc%5Etfw">September 2, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



But the name is quite the mouthful.&nbsp;



“XRPL Gamechain” is not a consumer-friendly name at all. In fact, it’s more a name for developers. It speaks to what it is technically.



Then there’s the “<a href="https://xcade.fun/">Xcade</a>,” which launched on the XRPL Gamechain testnet with some browser-based minigames that look like we’ve traveled back in time to the early 2000s MiniClip era of Adobe Flash Player gaming:



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="948" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=1024&amp;h=1024" alt="" class="wp-image-107379" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=441 441w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=370 370w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-59.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">A look at Xcade’s game library, intended to have a mobile-first focus.</figcaption></figure>



B3 says Xcade “eliminates onboarding friction and creates a low barrier to entry into the XRP ecosystem, making it easier than ever to become an active participant.”



NPC Labs’ Daryl Xu says the Xcade is intended to “jumpstart a thriving consumer ecosystem built around XRP.”



But I’m not so sold on the idea that the “Xcade” is really going to bring new people to crypto. It’s more likely another addition to the GameFi trenches.&nbsp;



Overall, I think it’s worth asking ourselves: What does crypto gaming’s growth look like? Where might growth come from, especially if traders are still busy launching <a href="https://blockworks.co/news/are-memecoins-successful-crypto-products-zora">memecoins</a>?&nbsp;



Are we really getting anyone new onboarded with new gaming-focused blockchains — or are we just preaching a slightly different sermon to the same degen choir?



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blockchain

Does crypto really need more blockchains?

Blockworks

The NFT marketplace OpenSea announced the creation of its Flagship Collection on Monday. According to the company, this will be a $1 million initiative to acquire and curate digital art and culturally significant NFTs.



The move marks the company’s first formal reserve, <a href="https://x.com/opensea/status/1965133373489484275">designed</a> to showcase NFTs as cultural artifacts while giving artists and collectors heightened visibility. The launch also coincides with OpenSea’s broader strategy ahead of its SEA token rollout.



The program will operate under a committee-driven process, with OpenSea employees and external advisors selecting acquisitions. Purchases will be celebrated as “acquisition moments” across the platform’s channels, designed to encourage dialogue and education in the collector community. To safeguard against conflicts, OpenSea says it has established strict internal procedures to prevent leaks or trading misuse.



The first purchase in the collection is <a href="https://www.cryptopunks.app/cryptopunks/details/5273">CryptoPunk #5273</a>, one of the original 10,000 NFTs in the iconic Larva Labs series later acquired by Yuga Labs. The marketplace <a href="https://etherscan.io/tx/0xe38213bde0e43693df83838147a08bb914ad253105dfee127d4aeb556bfcf76a">appears</a> to have paid 65 ETH for the asset, worth ~$285K at time of purchase, roughly two weeks ago.



OpenSea Chief Marketing Officer Adam Hollander said the initiative is intended to “spotlight emerging artists and creators,” placing their work alongside historically significant digital pieces. Over the coming months, the marketplace says that it plans to target one acquisition every few days, spanning works from emerging artists to rare, high-profile tokens, with the goal of building a long-term cultural archive.



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M&amp;A

OpenSea launches NFT archive with $1M+ acquisition plan

Ben Strack

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forward-guidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



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A Monday <a href="https://blockworks.co/news/nasdaq-sec-tokenized-securities">Nasdaq filing</a> seems to affirm what many of you may have read previously: Tokenization could transform finance sooner than many think.  



In a <a href="https://listingcenter.nasdaq.com/assets/rulebook/nasdaq/filings/SR-NASDAQ-2025-072.pdf">proposal</a> to the SEC, the exchange seeks to let firms and investors tokenize the equity securities and ETPs they currently trade on the Nasdaq.&nbsp;



More specifically, the approach would allow participants the choice (upon entering an order) to have the Depository Trust Corporation (DTC) clear and settle trades in tokenized form.



Nasdaq noted that tokenized securities are “technologically distinct” from those traded on the exchange today (blockchain tech can offer faster settlements, improved audit trails, etc). But the company emphasized that both the traditional and tokenized types of shares would have the same value, rights/benefits, and market identification number.



Integrating digital assets into Nasdaq’s existing infrastructure “will advance financial innovation while maintaining stability, fairness and investor protection,” the exchange’s VP of North America said in a statement.



Ondo Finance chief strategy officer Ian De Bode said the filing reinforces the vision that blockchain tech can enhance traditional markets while preserving what makes them trusted.&nbsp;



“The same rails that gave people global access to the US dollar will now give global access to US capital markets,” he added.&nbsp;



This filing comes a bit more than a month after SEC Chair Paul Atkins’ made his “Project Crypto” pronouncement — an initiative to let the US financial markets <a href="https://blockworks.co/news/sec-chair-atkins-project-crypto">move onchain</a>. The agency then issued a couple joint statements with the CFTC last week, <a href="https://blockworks.co/news/sec-cftc-crypto-coordination">promising collaboration</a> that fosters innovation:&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="958" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=1024&amp;h=1024" alt="" class="wp-image-107384" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=436 436w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=366 366w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-60.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



With a household name in finance getting on the tokenization train, let’s mention another that has jumped on the bandwagon.



Fidelity launched its Treasury Digital Fund (FDIT) in December before filing for its OnChain share class in March — allowing it to use both traditional book-entry form and blockchain tech to record share ownership on Ethereum. The new share class went live last month.  



This is Fidelity’s first tokenized investment product — following fellow TradFi behemoths like Franklin Templeton and BlackRock into this realm. Its blockchain representation, the Fidelity Digital Interest Token (FDIT), can be bought/redeemed through Fidelity Investments.



The combined assets under management in BlackRock’s BUIDL, WisdomTree’s WTGXX and Franklin Templeton’s BENJI make up more than half the $7.4 billion tokenized treasury space. FDIT, in its early days, manages roughly $200 million.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="779" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=1024&amp;h=1024" alt="" class="wp-image-107385" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-61.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Basically, FDIT is a step toward the company building out more efficient systems and interoperability between traditional and onchain investors. Fidelity and other aforementioned financial giants clearly view yield products as a good way to start.&nbsp;



Fidelity’s Cynthia Lo Bessette told me: “Longer-term, we anticipate that market infrastructure will integrate tokenized assets, which will reshape market structure and create new opportunities for investors to access broader asset classes and personalize portfolios.”



And that expectation brings us back to what Nasdaq is trying to do. In other words, more of the financial world is getting on the same page.



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Fidelity

The ongoing TradFi bids to enhance markets via blockchain tech

A critical software hack may be putting crypto funds at risk, Ledger’s chief technology officer Charles Guillemet warned on Monday.



Hackers appear to have <a href="https://jdstaerk.substack.com/p/we-just-found-malicious-code-in-the">compromised</a> the npm account of an unnamed developer who’s “well-known,” Guillemet said.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">🚨 There’s a large-scale supply chain attack in progress: the NPM account of a reputable developer has been compromised. The affected packages have already been downloaded over 1 billion times, meaning the entire JavaScript ecosystem may be at risk. The malicious payload works…&mdash; Charles Guillemet (@P3b7_) <a href="https://twitter.com/P3b7_/status/1965094840959410230?ref_src=twsrc%5Etfw">September 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The hackers slipped malicious code into a tiny but widely used JavaScript package called error-ex. That package has been downloaded more than one billion times and is embedded in countless apps and services.



The malware operates by silently monitoring for cryptocurrency activity. When a user tries to send Bitcoin, Ethereum, Solana, or other tokens, it swaps the destination wallet with one controlled by attackers. Victims may believe they are sending funds to a trusted address, but the money instead flows to malicious actors.



Security analysts <a href="https://x.com/BleepinComputer/status/1965094845543850353">warned</a> that the code can hijack transactions at multiple layers — altering what websites display, changing background processes, and even tricking apps into misrepresenting what users are signing.



Guillemet advised hardware wallet owners to carefully confirm each transaction on the device’s screen before approving it. Because the hardware displays the true recipient address, diligent users can still spot tampering. For those using software wallets alone, he urged avoiding all on-chain transactions until the attack is better understood.



Researchers are <a href="https://x.com/buyerofponzi/status/1965105171089785100">describing</a> the breach as possibly the largest open-source supply chain attack in history. It highlights the fragility of shared software libraries and the direct financial risk they can create in crypto.



This is a developing story.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Cybersecurity

Critical hack may put crypto funds at risk: Ledger CTO

Jack Kubinec

Former Symbolic Capital principal Sam Lehman is taking on a new role as a junior partner at Pantera Capital, Blockworks has learned exclusively.



Pantera brought Lehman in for his expertise on investments at the intersection of crypto and AI, Lehman said. The crypto VC is stocking the cupboard shortly after its first closing for Pantera Fund V, which is <a href="https://panteracapital.docsend.com/view/ju2beeuhswk8vpu6">targeting</a> a $1 billion raise. Pantera general partner and portfolio manager Cosmo Jiang has <a href="https://www.dlnews.com/articles/deals/pantera-capital-to-invest-over-200m-into-ai-crypto-projects/?utm_source=chatgpt.com">implied</a> a significant amount of the new fund will be earmarked for crypto-AI bets.



Pantera is one of the largest and oldest crypto venture firms, having <a href="https://panteracapital.com/?utm_source=chatgpt.com">grown</a> to $4.8 billion in assets under management since its 2013 founding. It has cut the third-most deals among crypto VCs over the past 90 days, per Blockworks Research.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="894" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=1024&amp;h=1024" alt="" class="wp-image-107351" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=467 467w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-58.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Pantera previously showed support for Bittensor, and Jiang told Blockworks that he’s <a href="https://blockworks.co/news/projects-to-watch-pantera">watching other projects</a>, such as Grass, in March. It also <a href="https://www.reuters.com/technology/artificial-intelligence/decentralized-ai-network-sahara-raises-fresh-capital-samsung-backed-round-2024-08-14/">led</a> a $43 million round for the blockchain-AI startup Sahara AI in 2024.



Lehman will become Pantera’s fourth junior partner. The firm also employs two managing partners, two general partners, and two partners.



While at Symbolic, Lehman made multiple investments at the intersection of crypto and AI, he said. He has also written about the sector, particularly in <a href="https://www.symbolic.capital/writing/the-worlds-rl-gym">regards</a> to reinforcement learning and pre-training, two processes through which AI models are developed.



Crypto and AI became popular speculative retail bets in late 2024, with several new projects tying tokens to AI agents — which, in many cases, were just chatbots. Many of these projects’ tokens have <a href="https://blockworks.co/news/ai-agent-market-wipeout">since cratered</a>. Lehman’s interests lie outside of curiosities like <a href="https://blockworks.co/news/lightspeed-newsletter-ai-bot-goat-memecoin">the GOAT memecoin</a>.



“If we’re using [projects] like goat, zerebro, etc, to define [the intersection of] crypto [and] AI, then, yeah, I’d definitely say there is nothing exciting to invest in there,” Lehman said in a text. “For me, however, I’m focused on more distributed, open-source AI companies where the focus is on using blockchains very intentionally / sparingly to facilitate coordination of people all over the world to collaborate on building SOTA AI.”



Lehman said he was drawn to Pantera partly due to the opportunity to work with companies “throughout their full journey, not only at the earliest stages.” He also said the move was due to the team he will be working with.



“I got to know the Pantera team during my time at Symbolic, having co-invested in several deals together. The team has a really unique mix of analytical rigor, warmth with founders, and extremely high integrity,” Lehman said.



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Ex-Symbolic principal joins Pantera to help with crypto-AI investing

David Canellis

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



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If you’re waiting for the conversation to shift away from Digital Asset Treasury companies, prepare to wait longer. Same goes for those anticipating a cascade of implosions.



“ You probably end up having an evolution of these DATs, where instead of just putting a one-to-one token in it, DATs basically become this vehicle through which capital ends up getting mobilized in the TradFi world and then deployed onchain at scale,” Yano posited on today’s Empire podcast to Ethena Labs CEO Guy Young.



With that in mind, Yano wondered whether the over-leveraged blowups at the end of 2021 and into 2022 has Young scared of a redux.



In the cases where the carry trade is collateralized one-to-one with the target asset — for example, raising $5 billion to deploy $5 billion — the stablecoin founder doesn’t see cause for concern.



<iframe loading="lazy" width="560" height="315" src="https://www.youtube.com/embed/NrIfwXyVtWQ?si=-c9z_b39j_eV-uPQ" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>







“I think the risk obviously comes if you start to lever up all of the underlying assets and you&#8217;re, you know, 2x long ETH within the vehicle itself, and then these things start getting liquidated. Obviously that becomes a bit more challenging,” Young said.



“I think the one thing that&#8217;s good is that they&#8217;re all much more transparent vehicles, right? Like, we couldn&#8217;t really see into the balance sheets of all of the entities that blew up last cycle, while here, you actually have disclosure requirements to be showing to the market. So anyone who&#8217;s reading those documents will be well aware of how much leverage there actually is.”



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



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</ul>

DATs

Shifts in strategy, increased transparency may help DATs evolve

Nasdaq has asked the US Securities and Exchange Commission (SEC) to authorize a rule change that would allow securities listed on the exchange to be traded in either their current electronic form or as blockchain-based tokens.



The filing, submitted September 8, 2025, was first reported by <a href="https://www.reuters.com/business/finance/nasdaq-makes-push-launch-trading-tokenized-securities-2025-09-08/">Reuters</a> and <a href="https://www.coindesk.com/policy/2025/09/05/nasdaq-seeks-nod-from-u-s-sec-to-tokenize-stocks">CoinDesk</a>.



If approved, the system would let investors choose on a trade-by-trade basis whether to settle positions conventionally or through tokenized versions of the same shares. Nasdaq emphasized that tokenized stocks would carry identical rights to traditional ones, including shareholder voting and liquidation claims.



Clearing would remain anchored in the Depository Trust Co., the backbone of US securities settlement, though trade records would also be stored on distributed ledgers.



Nasdaq’s filing comes as both traditional finance firms and crypto-native exchanges experiment with tokenization. Robinhood introduced stock tokens for European clients earlier this year, while Galaxy Digital created tokenized shares of its own stock. Coinbase has separately sought regulatory relief to handle tokenized equities in the US.



The SEC itself has shown interest: Chair Paul Atkins recently launched “Project Crypto,” describing tokenization as potentially transformative for market structure. At the same time, Commissioner Hester Peirce has warned that tokenized instruments remain securities under law, meaning issuers and venues must continue to meet federal compliance standards.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

NASDAQ

Nasdaq weighs SEC filing to allow tokenized securities

This is a segment from The Breakdown newsletter. To read more editions, <a href="https://blockworks.co/brand/the-breakdown">subscribe</a>



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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
&#8220;I do not fear computers. I fear the lack of them.&#8221;



— Isaac Asimov
</blockquote>



When ATMs became commonplace in the 1990s, people naturally thought most bank tellers would soon be out of a job.



They weren’t.



The number of tellers per branch did in fact go down, from 23 to 13.



But, as Benjamin Todd <a href="https://benjamintodd.substack.com/p/how-not-to-lose-your-job-to-ai">notes</a>, ATMs made bank tellers more productive (because they were freed up to do higher-value work) and bank branches more profitable.



So banks opened more branches — so many more that the total number of bank tellers actually rose.&nbsp;



That happy result held all the way until 2018, when online banking reduced the need for bank branches, which caused the total number of bank tellers to go down.



“While partial automation increased employment,” Todd concludes, “the more dramatic automation made possible by online banking did indeed reduce it.”



Could AI play out the same way?



A <a href="https://digitaleconomy.stanford.edu/wp-content/uploads/2025/08/Canaries_BrynjolfssonChandarChen.pdf">paper</a> published by Stanford University last week seemingly confirmed people’s worst job-pocalypse fears — that we’re skipping straight to the endgame of full automation.



The paper documents falling employment among recent college graduates in the most AI-impacted fields, like software engineering, and suggests that this is a “canary in the coal mine” for the job market — an early sign that AI is coming for all of our jobs.



The same exact data can, however, be used to reach the exact opposite conclusion.



Noah Smith <a href="https://www.noahpinion.blog/p/ai-and-jobs-again?publication_id=35345&amp;utm_campaign=email-post-title&amp;r=6g77v&amp;utm_medium=email">looks</a> at the paper’s findings and wonders why employment losses would only be found among the youngest workers.&nbsp;



If AI is ready to replace humans, wouldn’t companies fire their most expensive humans first?&nbsp;&nbsp;&nbsp;



<a href="https://joshuagans.substack.com/p/if-ai-and-workers-were-strong-complements?utm_source=substack&amp;utm_campaign=post_embed&amp;utm_medium=web">Joshua Gans</a> says the fact that companies have hired even more experienced employees is significant: It suggests that AI is making more experienced workers more valuable.



“If a new technology comes along that augments the productivity of existing workers,” Gans explains, “then any business will want to hire workers with the necessary skills and experience and fewer workers who don’t have those skills.”



From that perspective, Stanford’s paper is good news for human employment, not bad.



Like Tony Stark and his JARVIS assistant, AI is so far proving to augment human workers rather than replace them — and if augmented workers are more productive, the first-order effect of AI should be to make employment go up, not down.



The real problem now, Gans concludes, is businesses that have stopped hiring entry-level workers “are going to run out of workers with experience.”



If so, we might soon stop fearing AIs, and start fearing the lack of them.



Let’s check the charts.



The trend is not our friend:



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="836" height="716" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.46.43.png" alt="" class="wp-image-107315" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.46.43.png?w=836 836w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.46.43.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.46.43.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.46.43.png?w=305 305w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.46.43.png?w=256 256w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.46.43.png?w=80 80w" sizes="auto, (max-width: 836px) 100vw, 836px" /></figure>



This morning’s mobs data showed that employment fell in June — according to the BLS’s model, which is not to be taken literally. Still, the trend is undeniably going in the wrong direction.



The AI effect:



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="925" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=1024&amp;h=1024" alt="" class="wp-image-107309" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=451 451w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=379 379w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-52.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



From the aforementioned Stanford paper, its data on developer jobs by age group shows employment has fallen sharply for the youngest employees — but risen for the oldest. We can only hope that the same is true for newsletter writers.



More data:



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="935" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=1024&amp;h=1024" alt="" class="wp-image-107306" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=447 447w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=375 375w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-49.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Brian Armstrong <a href="https://x.com/brian_armstrong/status/1963315806248604035">shares</a> that over 40% of the code at Coinbase is now generated by AI. But he also notes that the code “needs to be reviewed and understood” by humans. That would explain the Stanford paper’s finding that experienced developers are in higher demand — and maybe confirm Joshua Gans’ thesis that AI is augmenting workers, not replacing them.



Zooming out:



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="883" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=1024&amp;h=1024" alt="" class="wp-image-107305" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-48.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The unemployment rate for college graduates has ticked up, but remains within historic norms.&nbsp;



The ATM experience:&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="1006" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=1024&amp;h=1024" alt="" class="wp-image-107307" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=409 409w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=415 415w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=348 348w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-50.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The best time to be a bank teller was the 18 years after ATMs arrived, because they made tellers more productive and bank branches more profitable. Online banking, however, was a replacement technology.



Look familiar?



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="919" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=1024&amp;h=1024" alt="" class="wp-image-107308" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=454 454w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=381 381w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-51.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The researchers at Epoch AI predict artificial intelligence will be an augmenting technology in the first instance — causing wages to increase 10x in just over a decade — but then become a replacing technology, causing wages to crash. But Benjamin Todd notes that this assumes AI can do 100% of the jobs. “If instead humans remain necessary for just a small fraction of tasks, say 1%, then the same model shows that wages increase indefinitely.” In other words, we have somewhere between 12 and infinity years of rapidly growing wages to look forward to.



The falling cost of compute:



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="680" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.20.png" alt="" class="wp-image-107316" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.20.png?w=740 740w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.20.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.20.png?w=280 280w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.20.png?w=284 284w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.20.png?w=238 238w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.20.png?w=80 80w" sizes="auto, (max-width: 740px) 100vw, 740px" /></figure>



If AI is going to someday do 99% of the jobs, it’s going to demand a lot of power. This chart from a <a href="https://download.ssrn.com/2025/7/9/5136877.pdf?response-content-disposition=inline&amp;X-Amz-Security-Token=IQoJb3JpZ2luX2VjEA8aCXVzLWVhc3QtMSJHMEUCIQDW7Tb35437%2BjGVGkiVvMbgMmqVlZ%2B4MLk%2Fwn%2BYlWGQkAIgKo8tjkr%2FPzF5TXr05Zc%2Bs13tLct9kmaCOyZ7wjeh5w4qvgUIdxAEGgwzMDg0NzUzMDEyNTciDAEV6k5sjY%2FBKrKf8yqbBf7mkSKNo7vj0zjkkbOhG2nnyjHfa29N%2FE%2Fuz%2Bpruqp0%2FmzY920VTFV3V4oaBGsF8SRZvaxQfTp2UNpWcoK3z9jXLeFkXYmwnKQj0CZxtxq1auFTBh5aCMNtjBJ%2Fq5GqKzzKh6GXI1pOKzpQH5v4l4QOZt9wVW%2F57ifBbFxSE%2BWk%2F35nxRgKbh254HWvpA2m2P%2FPC2gpaII73fInwqzOk0aZ%2F0atGqSrIkyP1P4MLIgM9gN6N8BI3ZtIIgxAMQPM8Ut943HljlhHwW2p0tk19PxbBVEF%2BOL3ypkOwVZYOelllqaJpe%2BGREmyCRMTms4Gwdqm1B68D84ndQDClWKZMXHGF7sfJ9ejgGfhnSgWpOSejcq3yX7LU22keUAB8vmJOw%2FqWL0n7njRC8fn3ikGNk0DrNRj8ys8IKLOYwm4MvqaWBfa520Vwjf74%2B34yKSpFbSStsWqiNokmp6wxbBlENh%2BmSQOiY%2BBJjjME%2B0B3xu63MGbSpnLpOTLkCoSj0CvHDvPIM9bRd%2B0yW1p4x%2BEXQQ7XCSceidyf3tgjbI%2Bl8roufqa2Aj2A4FKbocx54dwhRsWaT9Xnj%2BYkd%2BGYs%2FOWa05CCA281VVpx%2FapJxHSp053IBJZ2KAQlqWFUNoq9JmOa9xO6ZYObMZg7pMx%2BTUxupGtIFlJwoY13%2FhOxdELqgq1bVOg9HuIFFdcmMuKsYflq57LyC5CXfx1mjuGA8j45%2F%2F5MGJF%2B4AKb2zPcEkkRFr%2Fa4ExEHYf%2BrFlngthPuSECTDNM3nRSwHyjIk5M0R0yDnrhZwtY%2BO6OB6pTh8S8HoZDwAu0TaYzgx%2BIdmsa6aecj%2BSX7TR6f8gGxUBebq4tiupfIbAYrjQJ1Wjpy9enR7Jz%2F2Tg080Ki4oL4wzuHrxQY6sQE5vTfzWLK9MaiOckljVuAKxx3xBRfZrN%2BxQWofEb0YwJlY8Ad8D9Fp6CufWFFO3gSrr2mqzwLyYp18lz5KZeJ6lDcu5ZQO1VrIYq438p0anm%2BUd6wpxyy995Y8OzfaO7dEiHgU44wto443afEpK%2F6Jw%2Fxec8Smf%2BqqyIgiBvKaEGw5IzZ5QmshEmW4%2FnKj4zuj30YEkG%2FQGXx2zX9oCKwV%2BqcKeKeGshsAqKUnz86Z9Zo%3D&amp;X-Amz-Algorithm=AWS4-HMAC-SHA256&amp;X-Amz-Date=20250905T145014Z&amp;X-Amz-SignedHeaders=host&amp;X-Amz-Expires=300&amp;X-Amz-Credential=ASIAUPUUPRWERD62S6PS%2F20250905%2Fus-east-1%2Fs3%2Faws4_request&amp;X-Amz-Signature=9dda38e55c6190a0b3202500822c33794c2bc5488efb0c8765b259fafb8530e0&amp;abstractId=5136877">paper</a> on the use of Gen AI in the workplace suggests we’ll figure out how to do it cheaply.



Not everything is AI:



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="978" height="634" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.36.png" alt="" class="wp-image-107317" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.36.png?w=978 978w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.36.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.36.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.36.png?w=396 396w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.36.png?w=403 403w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.36.png?w=338 338w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-05-at-16.47.36.png?w=80 80w" sizes="auto, (max-width: 978px) 100vw, 978px" /></figure>



Shares of Build-A-Bear are up 1,800% over the past five years — outperforming Nvidia by nearly 600 percentage points.



The long view (2):



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="917" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=1024&amp;h=1024" alt="" class="wp-image-107304" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=455 455w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=382 382w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-47.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



A century of rising US employment through nonstop technological upheaval is reassuring proof that humans always find new things to do.



The example of bank branches and ATMs will still worry people, of course — even if AI is augmenting human workers now, it might replace them later.



But <a href="https://www.economicstrategygroup.org/publication/deming_ong_summers/">research</a> by future-of-work economist David Deming suggests that employment always changes far slower than technology, so it’s unlikely to happen anytime soon.&nbsp;&nbsp;



Or ever.



“While AI helps with certain tasks of professional and managerial workers,” Deming concludes, “the demand for good ideas and cogent analysis of complex counterfactual thought experiments may be nearly unlimited.”



In other words, we might all be bank tellers making change today — and Tony Stark-like augmented humans doing superhero things tomorrow.



Let’s hope so.



Have a great weekend, augmented readers.



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Friday charts: Job-pocalypse now?

Casey Wagner

The Senate Banking Committee on Friday afternoon finalized an updated version of its market structure bill, and it includes a key provision that industry members have been pushing. 



The latest version of the Responsible Financial Innovation Act of 2025, which comes in at 182 pages, includes a section titled “protecting software developers and software innovation,” according to a copy of the draft reviewed by Blockworks.&nbsp;



It’s a section that is notably missing from the House’s market structure bill, the CLARITY Act.



Lawmakers are expected to consider the new version at the end of September, Blockworks <a href="https://blockworks.co/news/senate-september-market-structure-bill">reported</a> last week.&nbsp;



The Senate’s new draft seeks to exclude certain actors from securities laws and disclosure requirements. It states that validators are exempt from anti-money laundering and anti-fraud compliance requirements.&nbsp;



The new version also stipulates that offering, selling or transferring an NFT does not constitute a securities offering or sale of an investment contract, something the House’s bill also did not include.&nbsp;



Friday’s discussion draft expands significantly on the 35-page draft Senate Banking Chair Tim Scott (R-S.C.) — along with Sens. Cynthia Lummis (R-Wyo.), Bill Hagerty (R-Tenn.), and Bernie Moreno (R-Ohio) — introduced in July. While the first draft focused on the US Securities and Exchange Commission’s role in overseeing digital assets, the updated text includes provisions for how the agency should work with the Commodity Futures Trading Commission (CFTC).&nbsp;



Similar to the CLARITY Act, the new version requires the SEC and CFTC to issue joint rules defining and regulating digital commodities.



Lawmakers are now tasked with turning the two pieces of legislation into one. Lummis, earlier this month at the Wyoming Blockchain Symposium, <a href="https://www.youtube.com/watch?v=TxVj-Lxj2Sk">said</a> she hopes to have a crypto market structure bill on President Donald Trump’s desk by Thanksgiving.&nbsp;



The <a href="https://www.congress.gov/119/bills/hr3633/BILLS-119hr3633eh.pdf">CLARITY Act</a> passed the House in a <a href="https://blockworks.co/news/us-house-passes-clarity-act">294-134 vote</a>. 78 Democrats voted in favor of the measure.



The updated draft comes after the SEC and the CFTC released two joint statements on crypto this week.&nbsp;



In a joint statement released Friday, SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham kicked off what the two are calling “a new beginning” for their agencies.&nbsp;



“It is a new day at the SEC and the CFTC, and today we reaffirm the need to ensure regulation does not stand in the way of progress,” Atkins and Pham wrote. “By working in lockstep, our two agencies can harness our nation’s unique regulatory structure into a source of strength for market participants, investors, and all Americans.”



Pham and Atkins’ Friday comments come after the SEC and CFTC staff on Tuesday released a joint statement clarifying rules around certain crypto trading. 



Exchanges registered with either the SEC or the CFTC are not prohibited from facilitating trading of certain spot commodity products, staff wrote. These include “leveraged, margined, or financed spot retail commodity transactions on digital assets,” per the statement.



Updated September 5, 2025 at 5:17 pm: Added further context. 



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Cynthia Lummis

Senate Banking Committee finalizes updated market structure bill draft 

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forward-guidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Because companies accumulating crypto (aka digital asset treasuries, or DATs) have created quite the buzz this summer, it’s worth addressing reported guidance such firms are getting from a major exchange.&nbsp;



The TL;DR, you ask? Nasdaq told companies listed on its exchange that their shareholders, “under certain circumstances,” would need to approve plans to raise money to buy crypto, Yueqi Yang <a href="https://www.theinformation.com/articles/nasdaq-steps-scrutiny-companies-loading-crypto?offer=rtsu-engagement-25%2Crtsu-featured-articles-pro&amp;utm_campaign=RTSU%3A+Nasdaq+Steps+U&amp;utm_content=9928&amp;utm_medium=email&amp;utm_source=cio&amp;utm_term=6713">reported</a>.



I got ahold of a rep at Nasdaq, who declined to comment.



But let’s take a moment to clarify something. The exchange has not created any new rules specific to crypto-linked companies. Any guidance given to industry firms deals with adhering to existing standards (feel free to peruse those <a href="https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5600-series#nasdaq-rule_5635">here</a>).&nbsp;



Among the companies reportedly in the crosshairs here was Heritage Distilling, Finality Capital Partners’ David Grider’s X post shows.&nbsp;



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1178" height="1262" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-56.png?w=1024&amp;h=1024" alt="" class="wp-image-107313" style="width:645px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-56.png?w=1178 1178w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-56.png?w=280 280w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-56.png?w=956 956w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-56.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-56.png?w=240 240w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-56.png?w=244 244w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-56.png?w=204 204w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-56.png?w=75 75w" sizes="auto, (max-width: 1178px) 100vw, 1178px" /></figure>



My colleague Byron Gilliam — author of <a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown newsletter</a> — gave this <a href="https://blockworks.co/news/overconfidence-in-crypto-markets">take</a> yesterday: “That doesn’t seem like a lot to ask — shouldn’t shareholders get to vote on such a major change of direction?”



Put simply, I agree. And others — like Federico Brokate, head of 21Shares’ US business — tell me they too are not surprised, given exchanges long prioritizing investor protection.



“Transitioning to a digital asset treasury significantly alters a company’s risk and return profile, making it crucial for boards and investors to be aligned in their understanding and approval of such a strategic move,” the ex-BlackRock exec said.



Bitwise senior investment strategist Juan Leon added: “The change reinforces a trend: institutional investors are increasingly embracing crypto, but looking for transparency and governance standards.”&nbsp;



The more important question seems to be how this would impact what has become <a href="https://blockworks.co/news/companies-holding-crypto-phase-one">a bit of a craze</a>. The splash of colors on the right side of this chart show how many more companies have begun stockpiling bitcoin, ether and other tokens this summer:



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="865" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=1024&amp;h=1024" alt="" class="wp-image-107346" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-57.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Shares of Strategy — holder of a bazillion or so bitcoin (636,505 BTC, in actuality) — dipped Thursday, seemingly in response to the report.



BitMine Immersion, which boasts the <a href="https://blockworks.co/news/eth-treasury-companies-growth">largest corporate ETH treasury</a> and also saw a share price decline Thursday, felt the need to share an X post in the story’s wake.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">For those wondering&#8230; BitMine is listed on the NYSE American. BitMine is able to issue shares via its existing shelf registration without shareholder approval. Ticker: <a href="https://twitter.com/search?q=%24BMNR&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BMNR</a> Chairman: Thomas &quot;Tom&quot; Lee <a href="https://twitter.com/fundstrat?ref_src=twsrc%5Etfw">@fundstrat</a>&mdash; Bitmine BMNR (@BitMNR) <a href="https://twitter.com/BitMNR/status/1963687490557980692?ref_src=twsrc%5Etfw">September 4, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



“We don’t anticipate this rule will significantly deter corporate interest in adding crypto to balance sheets,” Brokate noted. “While it may introduce some delays as boards and shareholders assess the risks and benefits, it’s unlikely to stifle overall demand.”



Leon agreed about Nasdaq’s reported guidance potentially slowing adoption, particularly for smaller companies seeking to replicate MSTR’s model. Over the longer term, it could “concentrate the crypto treasury strategy among better-capitalized, high-conviction firms willing to navigate the governance process,” he added.



That doesn’t seem like a bad thing at all — and could help investors more easily navigate a subsector some <a href="https://fortune.com/crypto/2025/07/30/bitcoin-treasuries/">remain skeptical of</a>. Perhaps you saw what <a href="https://x.com/nic__carter/status/1928447918354149728">Nic Carter</a> and Blockworks’ own <a href="https://x.com/MikeIppolito_/status/1927450775870931015">Michael Ippolito</a> had to say about these vehicles as far back as May.&nbsp;



“For investors, that means the wild-west phase of public companies casually turning into crypto vehicles is ending,” Leon explained.&nbsp;



Perhaps only a handful of these crypto-accumulating machines reach scale and withstand the test of time. But we’re likely to see <a href="https://blockworks.co/news/companies-building-btc-treasuries-corporate-reserves">many more</a> quietly putting a small percentage of reserves toward BTC, for example, as a hedge against uncertainty.



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Nasdaq’s reported guidance to DATs ‘unlikely to stifle overall demand’

SOL Strategies received approval to list its shares on Nasdaq under the ticker STKE, Blockworks has learned exclusively.



The shares, according to the press release, are expected to start trading on Sept. 9.



SOL Strategies became the first Solana treasury company after <a href="https://blockworks.co/news/lightspeed-newsletter-sol-strategies-rebrand">rebranding</a> from Cypherpunk Holdings in September 2024. Its stock currently only trades in Canada, however, and the company’s net asset value has been passed by a trio of newer US-based Solana DATs.



Following years of uninspiring stock returns, the Canadian crypto holding company Cypherpunk Holdings tapped board member and ex-Valkyrie CEO Leah Wald as CEO last summer. After taking the reins, Wald remade the company into a Solana DAT — several months before <a href="https://blockworks.co/news/sol-digital-asset-treasuries-are-coming-in-size">DAT mania</a> took hold of Wall Street.



Read more: <a href="https://blockworks.co/news/sol-strategies-is-solanas-microstrategy">Meet Sol Strategies: The MicroStrategy of Solana</a>



SOL Strategies has particularly honed in on Solana staking. The company acquired Solana validators from Orangefin Ventures, Cogent Crypto, and Laine. It has hired multiple staking-focused executives and has made more ecosystem-focused staking moves like <a href="https://solstrategies.io/sol-strategies-partners-with-pudgy-penguins-to-launch-enterprise-pengu-validator-on-solana/">launching</a> a Pudgy Penguins white label validator and <a href="https://x.com/solstrategies_/status/1953123970317701606">powering</a> the Solana Mobile validator.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="928" height="528" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-46.png" alt="" class="wp-image-107289" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-46.png?w=928 928w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-46.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-46.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-46.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-46.png?w=459 459w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-46.png?w=385 385w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-46.png?w=80 80w" sizes="auto, (max-width: 928px) 100vw, 928px" /><figcaption class="wp-element-caption">Solana Treasury Companies SOL holdings. CYFRD corresponds to SOL Strategies. Source: Blockworks Research</figcaption></figure>



SOL Strategies’ stock is up almost 900% over the past year, but its roughly $90 million in SOL holdings makes it significantly smaller than the three largest Solana DATs, which all hold between $380 and $420 million in SOL. That’s likely been partly due to SOL Strategies’ lack of access to the US market.&nbsp;



The company first applied for a Nasdaq listing in December 2024. In the interim, it has been progressing through requisite procedural steps, such as when it <a href="https://site.financialmodelingprep.com/market-news/sol-strategies-inc-announces-reverse-stock-split">underwent</a> an eight-for-one reverse stock split in August.



SOL Strategies’ listing means every Solana DAT tracked by Blockworks Research will trade on Nasdaq with the exception of BIT Mining, which trades on the New York Stock Exchange.



“Above this being a huge achievement for both my team and the larger SOL Strategies community, our approval to list on Nasdaq signals to both institutional and retail investors that a Solana-focused validator and treasury company can meet the same standards of transparency, resilience, and growth expected of any public company. It also demonstrates that our approach to business is resonating within both the Solana ecosystem and the traditional capital markets,” Wald said.



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Leah Wald

Exclusive: Nasdaq approves SOL Strategies listing

Multicoin Capital managing partner Kyle Samani is expected to serve as chairman for a forthcoming Solana treasury vehicle, three sources with knowledge of the matter said.



Multicoin hatched plans for a potential $1 billion Solana digital asset treasury company, alongside Galaxy Digital and Jump Crypto, Bloomberg first <a href="https://www.bloomberg.com/news/articles/2025-08-25/galaxy-jump-multicoin-seek-1-billion-for-buying-solana-token">reported</a>.



According to the report, the DAT is expected to be created via a takeover of an undisclosed publicly traded entity. The transaction is yet to take place.&nbsp;



Multicoin and Galaxy declined to comment. Samani and Jump did not return requests for comment.



Samani’s role as chairman could answer a question on many Solana watchers’ minds lately: <a href="https://blockworks.co/news/solana-wall-street-champion">Who will be Solana’s version of Michael Saylor?</a>&nbsp;



Multicoin first <a href="https://www.crunchbase.com/funding_round/solana-io-seed--6b558739">invested</a> in Solana during the blockchain’s 2018 seed round, and Samani has become one of the network’s staunchest advocates.



Samani frequently posts in Solana’s favor — and <a href="https://x.com/KyleSamani/status/1962520401915027808">trolls</a> its competitors — to his more than 170,000 followers on X. Samani’s chairmanship could set him up for a similar role to Strategy executive chairman Michael Saylor and BitMine chairman Tom Lee, who have become well-known for television appearances and social media posts praising bitcoin and ether — which are held by their respective DATs.



If Multicoin, Galaxy, and Jump’s forthcoming DAT is able to raise and deploy $1 billion, it would become the largest Solana treasury vehicle as things stand today. The current leader, Upexi, has a net asset value of $413 million, according to Blockworks Research <a href="https://blockworks.com/analytics/treasury-companies">data</a>.&nbsp;



Solana treasury companies are proportionally smaller overall than for BTC or ETH. Just 1% of SOL is held by treasury companies, compared to 3.4% and 2.9% of bitcoin and ether, respectively.



Updated 9/5/2025 at 1:42 p.m. ET: Michael Saylor is Strategy executive chairman.



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Multicoin’s Kyle Samani expected to be chairman for Solana treasury company: Sources

Macauley Peterson

YO, short for Yield Optimizer, launched a yoEUR vault on Friday, adding fresh momentum to the euro stablecoin trade. But market infrastructure still lags behind. Cross-chain liquidity for Circle’s EURC is limited, causing distortions in interest rates on borrow and lending markets not seen with larger USD-pegged stablecoins.



yoEUR is a <a href="https://blockworks.co/tag/multichain">multichain</a> yield vault designed to optimize returns on EURC. Like YO’s earlier offerings, covering ETH, BTC and USD, the vault allocates capital across multiple chains and strategies using a risk-adjusted framework.



The “yoTokens implement the <a href="https://blockworks.co/tag/erc-4626">ERC-4626</a> tokenized vault standard, with key additions to support a multi-chain architecture,” YO Labs CEO Driss Benamour told Blockworks. “YO deposits are currently on <a href="https://blockworks.co/tag/base">Base</a>, with one-click deposits supported from multiple chains, including <a href="https://blockworks.co/tag/arbitrum">Arbitrum</a>, via integrated routing and bridging. YO actively harvests yields across multiple chains, including <a href="https://blockworks.co/tag/ethereum">Ethereum</a>, Base, and <a href="https://blockworks.co/news/unichain-mainnet-is-live">Unichain</a>, with Arbitrum coming soon.”



Asked about visibility into yield positions, Benamour said: “All YO strategies are fully transparent and accessible on the dApp…Users can always track exactly where their assets are allocated via the dApp.”



The launch comes as euro-denominated stablecoins inch further into the DeFi spotlight, thanks to a dollar weakness. The greenback has been ranging over the summer, but is down roughly -12% against the euro year-to-date.



On Solana’s <a href="https://blockworks.co/podcast/lightspeed/3274fdb8-7f13-11f0-b217-8b38893dcf35">Jupiter Lend</a> kicked off <a href="https://x.com/kashdhanda/status/1963135217738149902">a two-month</a> incentive program pushing posted EURC APYs above 7%.



Aave founder Stani Kulechov has repeatedly <a href="https://x.com/StaniKulechov/status/1956645156762820709">promoted</a> ~5% lending yields on EURC via Aave deployments on Base and Ethereum that support EURC.



But the euro carry trade remains fragmented. On Aave v3 Ethereum, borrow rates for EURC briefly spiked to nearly 20% around 6:00 a.m. ET Friday before falling below 8% by 11:00 a.m. — a textbook case of what happens when a tightly capped market brushes up against Aave’s interest rate “kink.” Once utilization crosses a certain threshold, even small net borrows can send rates soaring until new supply arrives.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="845" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=1024&amp;h=1024" alt="" class="wp-image-107272" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-45.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Source: <a href="https://aavescan.com/ethereum-v3/eurc">Aavescan.com</a></figcaption></figure>



In theory, borrowers could arbitrage the spread — borrow where liquidity is cheap (e.g., Base) and lend where it’s scarce (mainnet). But in practice, bridging friction kills the trade. Unlike USDC, EURC lacks a native <a href="https://bridg.sh/?to=ethereum&amp;from=base">CCTP-style</a> burn-and-mint bridge, so most flows rely on swap-and-bridge routes or CEX rails.



Portal (Wormhole’s token bridge) has been <a href="https://x.com/wormhole/status/1959964316968640921">promoting</a> EURC bridging between chains following its August launch, but even at a modest €10,000 size, transfers from Base to <a href="https://blockworks.co/tag/solana">Solana</a> clock in at ~33 bps, and Solana to Ethereum via Portal at ~49 bps. Base to Ethereum EURC bridges can be done for a more modest ~22 bps per via <a href="https://blockworks.co/news/squid-upgrade-cross-chain-abstraction">Squid router</a>.



All of these spreads will increase with size, of course, making it difficult to bring rates in line without relying on, for example, Coinbase as an intermediary.



But this can be an advantage for the little guy with capital already in place on these chains. Jupiter’s boost lifts APYs on Solana, but the cost to move funds in and out quickly discourages hedge-fund scale operations. Aave’s mainnet spikes tend to be driven by caps and a small number of large wallets, not durable demand. Risk curator Chaos Labs has <a href="https://governance.aave.com/t/chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-aave-v3-08-14-25/22934">twice moved</a> to raise the caps on EURC specifically on Aave’s core instance.



A vault that rotates between chains and strategies can theoretically harvest what individual users can’t.



“The euro is one of the most widely traded currencies in the world,” Benamour said. “With yoEUR, we’re unlocking the best DeFi yield for euro-denominated stablecoins, making it easy for anyone to earn more on their assets.”



As of today yoEUR is principally allocated to <a href="https://x.com/yeluacaM/status/1959729262765723887">Tokemak’s baseEUR vault</a> for which yields are boosted by <a href="https://blockworks.co/price/toke">TOKE</a> token emissions. That would make it appealing to users who don’t want to be bothered with, or gain a tax benefit from avoiding, having to claim rewards. There can also be advantages in terms of risk management, with both concentration risk mitigated and a confidence boost from risk ratings by Exponential.



Euro stablecoins in aggregate now top $540 million in <a href="https://www.coingecko.com/en/categories/eur-stablecoin">market cap</a>. But until native cross-chain mobility arrives, and money market caps scale up, expect rates to stay weird.



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Euro

Euro stablecoin push runs into thin liquidity

The Astana Financial Services Authority (AFSA), regulator of the Astana International Financial Centre (AIFC), has launched a pilot project allowing firms to pay regulatory fees using US dollar-pegged stablecoins.



<a href="https://aifc.kz/news/afsa-launches-pilot-project-to-accept-regulatory-fees-in-stablecoins/">Announced</a> on Thursday, during Astana Finance Days, the initiative introduces stablecoin settlement for license and supervision charges, and looks to position Kazakhstan as a regional hub for digital finance innovation.



The program operates under a multilateral memorandum of understanding, with Bybit as the first participant. AFSA noted that other firms can join the pilot if they meet eligibility requirements, and their participation will be disclosed on the regulator’s website. AFSA specified that only Digital Asset Service Providers licensed to offer money services in relation to digital assets or operate trading facilities can participate in the pilot as Providers. These entities act as agents, executing payments in stablecoins on behalf of firms and then remitting the equivalent amount in fiat currency to AFSA’s designated bank account.



“This initiative represents a first-of-its-kind regulatory framework for payments in stablecoins in the region,” AFSA CEO Evgeniya Bogdanova said.&nbsp;



Bybit COO Mazurka Zeng added that the exchange is “proud to contribute to expanding the payment ecosystem at the beating heart of financial innovation in Kazakhstan, the AIFC.”



Kazakhstan has been gradually expanding its digital asset oversight. In January 2024, AFSA <a href="https://afsa.aifc.kz/astana-financial-services-authority-afsa-introduces-stablecoin-framework/">introduced</a> a Stablecoin Framework and later <a href="https://afsa.aifc.kz/afsa-grants-first-stablecoin-issuer-license/">issued</a> the country’s first fiat-backed stablecoin license to AnchorX.KZ Limited. At the national level, the government is also <a href="https://astanatimes.com/2025/08/national-bank-launches-regulatory-sandbox-for-digital-assets/">developing</a> a regulatory sandbox and is actively <a href="https://web.archive.org/web/20240117160300/https:/nationalbank.kz/file/download/97556">progressing</a> a digital tenge pilot, with the first retail transaction completed in November 2023 and full implementation planned by the end of 2025.



The pilot marks a practical step in shifting regulatory payments away from traditional bank transfers, which are often slow and costly, toward blockchain-based solutions that promise speed, efficiency and transparency. While the project remains experimental, it reflects Kazakhstan’s ambition to grow the AIFC into a hub for fintech and digital asset services, even as questions about risk, custody, and long-term regulatory harmonization remain.



Blockworks Research data shows that stablecoins remain the dominant onchain settlement instrument, with daily transfer volumes on Ethereum alone ranging between $30 billion and $70 billion and occasional spikes above $100 billion.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="889" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=1024&amp;h=1024" alt="" class="wp-image-107266" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-44.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Daily transfer volumes on Ethereum | Source: <a href="https://blockworks.com/analytics/chain-comparison">Blockworks Research</a></figcaption></figure>



Despite recent slowdowns in decentralized exchange activity, stablecoin liquidity continues to climb, anchored on Ethereum but increasingly shifting toward Solana, which has grown from about $2 billion in late 2023 to more than $10 billion by mid-2025.



A Blockworks Research <a href="https://app.blockworksresearch.com/unlocked/stablecoins-as-financial-superconductors">report</a> from Q1 2025 suggested that emerging issuers such as Ethena’s USDe are expanding quickly, while legacy decentralized options like Maker’s DAI have stagnated. That shift reflects rising demand for yield-linked or synthetic dollar exposure — a dynamic that could influence Kazakhstan’s stablecoin policy as it seeks to favorably position the Astana International Financial Centre.



Updated 9/05/2025 at 11:53 a.m. ET to include figures on stablecoins and transfer volume.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Asia

Kazakhstan’s AFSA pilots stablecoin payments for regulatory fees

Tron founder Justin Sun claims his WLFI, the native tokens of Trump-linked World Liberty Financial, has been “unreasonably frozen” after a blacklisting on Thursday.&nbsp;



Sun is, according to the post, unable to transfer or use his multi-million dollar stash of WLFI&nbsp; after supposedly making an onchain move of roughly $9 million worth of the asset.



The reported blacklisting, which can be <a href="https://etherscan.io/tx/0x0230880850ae1daebdb1a9984f0f6b1601390bbe4738152556738aa901862d74">traced onchain,</a> marked one of the first governance tests for the project, launched by President Donald Trump (who is <a href="https://worldlibertyfinancial.com/about">designated</a> &#8220;co-founder emeritus&#8221;) and his family, who <a href="https://blockworks.co/price/wlfi">introduced</a> its token earlier this week.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">To the World Liberty Financials team and the global community, As one of the early major investors in World Liberty Financials, I have contributed not only capital but also my trust and support for the future of this project. My goal has always been to grow alongside the team…&mdash; H.E. Justin Sun 👨‍🚀 (Astronaut Version) (@justinsuntron) <a href="https://twitter.com/justinsuntron/status/1963807543983263802?ref_src=twsrc%5Etfw">September 5, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Since the incident, Justin Sun — who <a href="https://www.binance.com/en/square/post/01-20-2025-wlfi-7500-19174615399722">invested</a> at least $75 million into WLFI and also <a href="https://gizmodo.com/crypto-billionaire-justin-sun-vows-to-buy-another-100-million-of-trumps-memecoin-2000628350">pledged</a> $100 million toward Trump’s memecoin — has posted on X multiple times regarding the situation and asking the World Liberty team to unlock his holdings.



He also claimed that US-listed crypto stocks are an “undervalued opportunity” and <a href="https://x.com/justinsuntron/status/1963961392295244130">said</a> he’d “market buy $10 million worth of ALTS and $10 million worth of WLFI.”



WLFI fell sharply during Thursday’s trading session, dropping more than 20% before partially recovering, <a href="https://blockworks.co/price/wlfi">according</a> to Blockworks data. It currently idles around 64% down over the past seven days.



Onchain data from analytics firm Arkham shows Sun’s address sent 50 million WLFI tokens to a wallet associated with crypto exchange HTX shortly before the freeze.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">JUST IN: JUSTIN SUN’S ADDRESS BLACKLISTED FOR TRANSFERRING $9M <a href="https://twitter.com/search?q=%24WLFI&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$WLFI</a> <a href="https://t.co/O25281D7mi">pic.twitter.com/O25281D7mi</a>&mdash; Arkham (@arkham) <a href="https://twitter.com/arkham/status/1963655261249228999?ref_src=twsrc%5Etfw">September 4, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The tokens appear to have been later routed through additional addresses, including a Binance-linked deposit wallet, adding to speculation about large-scale sell pressure. Some 60 million WLFI were subsequently transferred into an HTX Gnosis Safe Proxy.



World Liberty Financial has not issued a statement on why the wallet was frozen and did not respond to requests for comment from Blockworks prior to publication.



Sun described tokens as “sacred and inviolable” and said unilateral actions threatened investor confidence. Sun also denied that the transfers amounted to sales, framing them as small exchange deposit tests.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Our address only carried out a few general exchange deposit tests with very small amounts, followed by an address dispersion. No buying or selling was involved, so it could not possibly have any impact on the market.&mdash; H.E. Justin Sun 👨‍🚀 (Astronaut Version) (@justinsuntron) <a href="https://twitter.com/justinsuntron/status/1963695382996894000?ref_src=twsrc%5Etfw">September 4, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In 2023, the US SEC, under Chair Gary Gensler, <a href="https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25676">filed</a> a lawsuit against Sun in March 2023, alleging unregistered offers and sales of Tron (TRX) and BitTorrent (BTT) tokens and manipulative wash trading.



However, the suit was <a href="https://www.reuters.com/legal/us-sec-tron-founder-justin-sun-explore-resolution-civil-fraud-case-2025-02-26/">paused</a> at the joint request of the SEC and Sun as both sides explored a potential settlement. However, no such settlement has been finalized since that time.



World Liberty Financial itself has raised questions about governance and concentration of control. Founded in 2024, the Trump family <a href="https://www.reuters.com/business/finance/how-trump-family-took-over-crypto-firm-it-raised-hundreds-millions-2025-03-31/">holds</a> a 60% controlling stake and stands to receive 75% of the platform’s token-sale revenue as of early 2025. It has also drawn <a href="https://abcnews.go.com/US/trump-family-crypto-venture-tapped-part-2b-emirati/story?id=121415842">scrutiny</a> for a $2 billion investment from an Abu Dhabi-backed entity and the introduction of a proprietary stablecoin. Critics, <a href="https://www.newyorker.com/culture/infinite-scroll/how-donald-trumps-crypto-dealings-push-the-bounds-of-corruption">including</a> The New Yorker, have warned that the project blurs the line between private gain and public influence given President Trump’s political position.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="https://blockworks.co/author/jeffrey-albus" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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