What has happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events, as well as appealing background reports, are presented in a pointed and compact manner in the weekly review.
Selected articles of the week:
Stablecoins are digital assets pegged to traditional values like the US dollar. This sector plays a crucial role for the United States. Stablecoins are backed by US government bonds, creating a constant demand for the state’s debt. For example, the leading stablecoin provider Tether holds more than 120 billion USD in US Treasury securities, more than the Federal Republic of Germany. Therefore, lawmakers place great importance on regulating these digital dollars. With a bipartisan vote of 66 to 32, the legislative framework “GENIUS Act” has already passed its first hurdle. In Switzerland, action is now required. Since 2024, significantly stricter regulations apply to domestic companies, including a banking license and full identification of all customers. These requirements from FINMA are almost tantamount to a ban, putting Switzerland at a considerable competitive disadvantage. Considering that Tether generated a net profit of 10 billion USD last year, such an approach is tactically unwise.
US Senate passes GENIUS Act to regulate stablecoins. Law establishes first nationwide framework for digital assets.
Robinhood plans to offer Real-World Assets
Real-World Assets (RWAs) refer to physical or intangible assets such as real estate, commodities, or corporate shares that can be tokenized and utilized in the decentralized blockchain economy. Similar to stablecoins, RWAs are backed by real-world values and reflect them on the blockchain. Robinhood, one of the world’s leading stock brokers, plans to quickly offer this concept to its customers. The company has submitted a regulatory proposal to the US Securities and Exchange Commission (SEC) to advance the launch of the Robinhood RWA Exchange (RRE) – a platform based on the Solana and Base blockchains. Other financial giants in the US are also increasingly turning to tokenization. Since March 2024, BlackRock has been offering a tokenized money market fund on the Ethereum blockchain, which now manages 3 billion USD. Additionally, the investment bank JPMorgan tested its first RWA transaction on a public blockchain in the week before last.
Robinhood plans real-world asset (RWA) tokenization using Solana and Base. SEC proposal targets efficiency and cost reduction.
Kraken overtakes from the right
Not only traditional financial institutions want to offer tokenized assets to their customers. While Robinhood is waiting for approval in the US, the cryptocurrency exchange Kraken has announced the launch of blockchain-based stock trading. Initially, US investors will be excluded from the offer. The Swiss startup Backed Finance acts as the infrastructure provider, enabling the conversion of stocks into fiat currency. The tokenized assets can be traded on the exchange around the clock – even on weekends and in real-time, without central clearinghouses. The “xStocks” provide international users with easy access to US stocks, particularly in countries without direct stock exchange connections. This could allow Kraken to attract a new target audience for digital financial products.
Kraken brings Apple, Tesla & Nvidia as tokens to Solana – tradable 24/7, fully backed, exclusively for international users.
15th anniversary of Pizza Day
This week, the Bitcoin community celebrated a humorous yet significant milestone. “Bitcoin Pizza Day” marked the moment when the theoretical concept of Bitcoin (BTC) was first used as a practical means of payment. On May 22, 2010, a member of the Bitcointalk forum paid 10,000 Bitcoin for two pizzas – an amount that, at the current all-time high, equates to over 1.1 billion USD. When Laszlo Hanyecz made this transaction, he demonstrated that Bitcoin could be used as a real currency, which is a fundamental characteristic of any currency. Although Bitcoin was an exciting system at the time, the cryptocurrency was not really used as a medium of exchange. “And if no one uses it, it doesn’t matter how many Bitcoin I have,” the pioneer added.
The global tradition of Bitcoin Pizza Day commemorates the historic purchase of two pizzas in 2010 and celebrates the first real-world test.
Cardano community in turmoil
In addition: NFT artist Masato Alexander recently caused a stir. He claimed in a post that Cardano founder Charles Hoskinson moved more than 300 million unused ADA tokens into the network reserves in 2021. These tokens came from the 2017 ICO and had not been redeemed by their original owners. Alexander accused Hoskinson’s company IOHK of misusing their Genesis keys to rewrite the Cardano blockchain. In response to an inquiry from CVJ.CH, IOHK stated that these were careful off-chain processes. The company had hired the law firm McDermott Will & Emery and the auditing firm BDO to independently review the ADA withdrawals and create a public report on the matter.
Hoskinson is accused of moving 318 million ADA – he denies the claim and threatens legal action, the Cardano community is divided.
