August 26, 2025

Altcoin ETFs, Protocol Buyback, MetaMask Roadmap, State-Backed Stables

Top Stories

Protocols Ramp Up Buyback Activity as Capital Allocation Strategy

Data shows nearly $40 million in weekly token buybacks across leading crypto protocols, underscoring a growing trend of using treasury funds and revenue to repurchase native tokens. Hyperliquid led the charge with $24 million in buybacks, while Pump.fun added $10 million, highlighting that the practice is concentrated among high-revenue platforms. Like corporate share repurchase programs, these moves aim to reduce circulating supply, signal long-term confidence, and support prices. However, their effectiveness has been mixed, as some projects see temporary price boosts while others face renewed selling pressure once buybacks slow. Sustainability depends heavily on revenue generation, with fee-rich protocols better positioned to maintain consistent repurchases than those relying on treasury depletion.

Source: Dune

Pump.fun Regains Dominance in Solana Memecoin Launchpad Battle

Pump.fun has reclaimed a commanding 90% share of Solana’s memecoin launchpad market, bouncing back from just 5% two weeks ago as LetsBonk’s share collapsed to 3%. The swing appears driven by the return of top deployers and bots, with on-chain analysts noting most large bot operators have abandoned LetsBonk. Pump.fun has also been fueling speculation with token buybacks, raising $600 million in July and reportedly repurchasing millions worth of PUMP shortly after. Meanwhile, LetsBonk is testing a points system to revive traction, but for now the balance of power has swung firmly back to Pump.fun.

Kanye West’s YZY Token Sparks Frenzy and Controversy

Kanye West appeared to launch a Solana-based cryptocurrency called YZY (Yeezy Money) via a post on X, igniting confusion after the token briefly hit a $3 billion market cap before crashing nearly 70%. The YZY site outlines plans for “Ye Pay” and a branded credit card, positioning the project as a tool for financial independence. While some suspected a hack, the token is listed as a payment option on Kanye’s official store, suggesting authenticity. However, on-chain analysts flagged concerns, with Lookonchain and Coinbase’s Conor Grogan noting that insiders controlled more than 94% of the supply, with one wallet netting $1.5 million in early trades. The website insists YZY is not an investment but an “expression of support,” though critics see it as a pivot from Kanye’s earlier anti-memecoin stance.

MetaMask Unveils mUSD Stablecoin and Debit Card Plans

MetaMask has announced mUSD, a fully dollar-backed stablecoin issued by Stripe subsidiary Bridge, launching later this year on Ethereum and Linea before expanding across its ecosystem. mUSD will integrate directly into the MetaMask wallet and DeFi tools, offering users seamless on- and off-ramps, and will later be enabled as a payment option for the MetaMask debit card powered by Mastercard. The move positions mUSD as both a liquidity layer within MetaMask and a potential competitor across DeFi, with the wallet’s massive user base giving it a distribution edge. While mUSD will not initially pay yield directly, executives suggested it could feature in future incentive programs. With stablecoin legislation under the GENIUS Act now in place, the launch underscores MetaMask’s ambition to bridge everyday payments, DeFi activity, and mainstream crypto adoption.

Regulation

SEC Delays Decisions on Altcoin ETFs

The SEC has postponed decisions on several crypto ETF proposals, including five spot XRP ETFs, CoinShares’ Litecoin ETF, Grayscale’s Dogecoin ETF, and 21Shares’ plan to add staking to its Ethereum ETF. It also pushed back the Truth Social Bitcoin and Ethereum ETF decision to October 8, drawing scrutiny due to Trump’s growing crypto ties. While such delays are procedural, the timing pushes key altcoin ETF rulings into Q4, just as institutional momentum and regulatory shifts have been boosting the sector.

Digital Asset Treasuries Overtake Venture Capital in Crypto Investment Flows

Digital asset treasuries (DATs) have become the dominant vehicle for crypto capital allocation in 2025, with over $15 billion raised through August. These publicly traded firms pivot their strategy by stockpiling crypto assets as reserves, often seeing sharp stock price gains after announcing such moves. While Bitcoin remains the cornerstone, Hyperliquid’s HYPE token has emerged as a surprising second favorite, with $1.5 billion already held by corporate treasuries. The surge in DAT activity coincides with a sharp decline in traditional crypto VC funding, down 56% year-over-year, as investors including Paradigm, Galaxy, and DCG redirect capital toward liquid public vehicles. July alone saw $6.2 billion in DAT raises, the largest monthly figure on record, highlighting accelerating institutional adoption and the growing role of treasuries as a bridge between crypto exposure and public market liquidity.

Source: The Block Pro

Bullish IPO Shows TradFi’s Hunger for Crypto

Bullish ($BLSH), the crypto exchange and CoinDesk owner, made a splash on Wall Street with an IPO that was 20x oversubscribed, underscoring huge demand for crypto exposure among traditional investors. The frenzy continued on launch day as shares spiked over 218% in the first 10 minutes of trading before the NYSE halted the stock to cool volatility. Adding to the milestone, Bullish settled its entire $1.15 billion IPO raise in stablecoins, blending TradFi’s capital markets with crypto rails. With Gemini, Figure, Kraken, Fireblocks, and Anchorage Digital also preparing IPOs, the rush of crypto companies to meet Wall Street’s demand for exposure is just beginning.

Wyoming Launches First State-Backed Stablecoin FRNT

Wyoming has launched the Frontier Stable Token (FRNT), a dollar- and Treasury-backed stablecoin built on Avalanche and supported across seven blockchains, making it the first U.S. state-backed stablecoin available for consumer payments, including anywhere Visa is accepted. While some experts hail it as a landmark for adoption and a bullish signal that could pressure Circle and Tether with new competition, critics warn it risks paving the way for federal CBDCs that could enable mass financial surveillance. Supporters highlight FRNT as a validation of stablecoins’ role in future financial infrastructure and note that government-backed issuers may accelerate mainstream adoption. With stablecoins already a $276 billion market and the GENIUS Act providing federal rules for their issuance, Wyoming’s move could spark a wave of state-level entrants and reshape competition in the space.

Other Domestic Regulation Updates

Other International Regulation Updates

DBS Bank to tokenize structured notes on Ethereum for institutional clients

Pain & Gain

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Important Legal Notices

This reflects the views MJL Capital LLC (“MJL”), but it should in no way be construed to represent financial or investment advice. Nothing in this correspondence is intended to constitute or form part of, and should not be construed as, an issue for sale or subscription of, or solicitation of any offer or invitation to subscribe for, underwrite, or otherwise acquire or dispose of any security, including any interest in any private investment fund managed by MJL. Any such offer may only be made pursuant to a formal confidential private placement memorandum of any such fund, which may be furnished to potential investors upon request and which will contain important information to be considered in connection with any such investment, including risk factors associated with making any investment in any such fund. Further, nothing in this correspondence is, or is intended to be treated as, investment or tax advice. Each recipient should consult their own legal, tax and other professional advisors in connection with investment decisions.

Domenic Salvo

Domenic Salvo is a Managing Partner at MJL Capital, helping lead Portfolio Research and Investor Relations.

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