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:
The Trump Media and Technology Group (TMTG) – operator of the social media platform Truth Social, the streaming platform Truth+, and the fintech brand Truth.Fi – has announced the raising of $2.5 billion in debt capital to build a “Bitcoin Treasury.” The company follows the example set by the U.S. software giant Strategy (formerly MicroStrategy), whose funding strategy includes a combination of stock issuance and convertible bonds. This method minimizes the risk of default while bondholders can benefit from the volatility of the stock. To date, Strategy has accumulated around $63 billion in Bitcoin – more than 2.5% of the total supply. It seems that the Trump media group wants to participate in this digital gold rush and is following the same approach.
Trump Media and Technology Group (TMTG) is raising USD 2.5 billion in debt capital to establish a Bitcoin reserve.
Financial giants want to develop stablecoin
Stablecoins are cryptocurrencies pegged to traditional assets like the U.S. dollar. As stable value carriers in an otherwise volatile market, they have become a central element of the digital financial ecosystem in recent years. With a current total market volume of over $245 billion, crypto companies like Tether (USDT) and Circle (USDC) dominate this segment. This increasingly puts pressure on traditional banks, as these crypto firms generate billions annually through the issuance of stablecoins and their backing with interest-bearing government bonds. In order to secure a share of this highly profitable market, several U.S. banks – including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and US Bank – are now considering the development of a joint dollar stablecoin.
Major US banks plan joint stablecoin to rival USDC & Tether – regulated, interoperable & bank-backed.
Start of the world’s largest tokenization project?
The Dubai Land Department (DLD), in collaboration with two fintech partners, has developed a platform for the tokenization of real estate. Investors can purchase fractional property ownership rights in Dubai starting from 2,000 Dirhams (approximately $540). The property titles are tokenized on the XRP Ledger and synchronized with the official land registry data. The goal of the project is to digitize about 7% of the Dubai real estate market – approximately $16 billion – by 2033. This could become the largest tokenization project in the world. The venture promises higher liquidity, lower entry barriers, and transparent transactions. Whether these advantages will be realized remains to be seen, as managing real estate with all its rights and obligations cannot be fully mirrored on a blockchain.
Dubai launches real estate tokenization on XRP Ledger: Prypco Mint enables fractional ownership from 540 USD – 16 billion USD target by 2033.
Heated decentralization debate over Sui
Last week, one of the largest decentralized exchanges on the Sui blockchain was hacked, resulting in a loss of around $220 million. $63 million was transferred to the Ethereum blockchain, while the remaining $160 million was frozen by validators at the direction of the Sui Foundation. In a vote, SUI stakers decided to return the funds. These events provide critics with ample opportunity for attack: The coordination of some validators by the foundation undermines decentralization and could be interpreted as censorship. The blocking of transactions sets a worrying precedent for future interventions. Supporters, on the other hand, argue that the intervention was necessary to secure users’ assets after the hack, and view the freezing as a rare protective measure, not censorship.
The Sui Foundation coordinated the freezing of stolen funds from the Cetus hack, raising questions about decentralization.
Self-custody or trading at the bank?
In addition: In the past, anyone wanting to buy cryptocurrencies had to set up their own wallet and deal with sometimes opaque crypto exchanges, thus taking on unpredictable risks. Nowadays, traditional banks also offer services for trading and custody of Bitcoin & Co. From a bank’s perspective, developing its own offering makes sense. The demand for cryptocurrencies is high, and those who don’t offer services lose customers. But from an investor’s perspective, it can also make sense to trade and store cryptocurrencies with one’s go-to bank.
Some traditional banks now offer services for cryptocurrencies. What advantages does this structure offer to investors?
