Top Stories
Stablecoins Hit $270 Billion Milestone
Stablecoin supply has reached a record $270 billion, with Ethereum holding $146 billion and reinforcing its role as the leading layer for digital dollars. USDT and USDC still dominate, but new challengers like USDe are shifting the model by distributing yields directly to holders. Stripe’s partnership with Paradigm and Hyperliquid’s USDH launch highlight growing competition as stablecoins gain systemic importance in U.S. regulatory discussions. This evolution signals both institutional adoption and a push toward more efficient stablecoin designs.
Source: DefiLlama
NPM Supply Chain Attack Contained With Minimal Losses
A major Node Package Manager supply chain attack targeting crypto users was quickly contained, with just $505 stolen before detection. Attackers used spoofed NPM support emails to compromise developer credentials and publish malicious packages aimed at hijacking Ethereum and Solana transactions. Implementation flaws exposed the breach early, limiting impact, and major projects like Uniswap, MetaMask, and Aave confirmed they were unaffected. Security experts warned the threat persists and urged reliance on hardware wallets and secure signing practices.
Ethereum Validator Entry Queue Surges Past Exit Queue
Ethereum’s validator entry queue has spiked from 152K to 873K in just two weeks, surpassing the elevated exit queue, which remains at 716K. Analysts attribute the surge to fresh capital reentering the network after leveraged stakers exited earlier in the year, as well as large deposits from long-dormant wallets. Notably, an ETH ICO-era address staked 150,000 ETH last week, signaling that older holders are choosing staking over distribution. The flip from exits to entries highlights renewed confidence in Ethereum staking, though both queues remain historically high, reflecting ongoing volatility in validator dynamics.
Hyperliquid’s USDH Stablecoin Proposal Sparks Controversy
Hyperliquid has opened proposals for teams to issue a USDH stablecoin, with validators voting over five days to decide the winning team. While Native Markets quickly submitted a GENIUS Act–compliant proposal with fiat gateways and a pledge to share reserves with the Hyperliquid Assistance Fund, criticism has emerged. Hyperstable, an existing protocol, called the move “unfair,” noting it was previously barred from using the USDH ticker and forced to launch under “USH.” Community members also questioned whether Native Markets had insider ties to Hyperliquid, pointing to suspicious wallet activity and the timing of its polished proposal. The dispute underscores growing tensions as stablecoins proliferate across the ecosystem, with institutions and platforms rushing to capture market share.
Regulation
Dogecoin Rises Despite ETF Delay
Dogecoin’s price climbed even as the launch of the Rex-Osprey DOGE ETF was delayed, according to Bloomberg analyst Eric Balchunas. The ETF, approved under the Investment Company Act of 1940, is now expected to debut mid-next week and will use derivatives via a Cayman subsidiary rather than hold DOGE directly. Analysts expect minimal price impact, noting that most DOGE investors already use exchanges, though multiple memecoin ETFs could launch later this year. Meanwhile, institutional interest grows as CleanCore Solutions expanded its DOGE treasury to $130 million, and Thumzup announced plans to acquire 3,500 Dogecoin mining rigs.
USAT vs USDT: Tether’s Two-Track Strategy
Tether’s launch of USAT looks like a pivot into full U.S. compliance, complete with Treasuries-only reserves, GAAP audits, and Trump-era crypto advisor Bo Hines as CEO. But USAT isn’t about replacing USDT — it’s about creating a compliant façade for Washington while preserving USDT’s dominance in the “grey zone” of offshore exchanges, OTC desks, and dollar-hungry savers in emerging markets. Forcing USDT into full U.S. compliance would gut its distribution advantage and cost Tether billions in yield, undermining its most profitable product. In reality, USAT may serve as collateral for institutional trading or political signaling, while USDT remains the core business powering global dollar liquidity where traditional rails cannot reach.
Forward Industries Secures $1.65B for Solana Strategy
Forward Industries announced $1.65 billion in cash and stablecoin commitments for a PIPE offering led by Galaxy Digital, Jump Crypto, and Multicoin Capital to establish a Solana treasury strategy. The deal positions the company as a leading publicly traded institutional participant in the Solana ecosystem. Kyle Samani of Multicoin will chair the board, with executives from Galaxy and Jump joining as observers, while Cantor Fitzgerald and Galaxy Investment Banking advise on the transaction. CEO Michael Pruitt emphasized confidence in Solana’s long-term growth and the firm’s focus on delivering shareholder value.
Tether Launches U.S. Arm for USAT Stablecoin
Tether has appointed Bo Hines, former White House Crypto Council executive director under Trump, as CEO of its new U.S. division to lead the rollout of the USAT stablecoin. USAT will be a U.S.-regulated, dollar-backed complement to USDT, with issuance handled by Anchorage Digital and support from Cantor Fitzgerald. The team will be based in Charlotte, North Carolina, with Tether targeting a launch by year-end. Despite strong profits, CEO Paolo Ardoino confirmed Tether has no plans for a public listing.
Pokémon Cards as Exotic RWAs: From Collectibles to Collateral
A wave of projects is experimenting with tokenized Pokémon cards, blending nostalgia with DeFi. Platforms like Courtyard on Polygon and Collector Crypt on Solana issue NFTs redeemable for graded, physically stored cards, while startups such as Keef’s aim to let collectors use high-value cards as collateral for loans. Despite growing sales volumes and novel mechanics like “vending machine” card drops, challenges remain: pricing relies on off-chain data, custodial trust is critical, and liquidation risk makes loans risky for everyday collectors. Still, tokenized Pokémon cards are emerging as a leading example of “exotic RWAs,” hinting at a future where sneakers, watches, and other collectibles follow the same path.
Other Domestic Regulation Updates
- Nasdaq seeks SEC nod to trade tokenized securities alongside traditional stocks
- Avalanche Foundation eyes $1 billion to set up AVAX treasury firms in US
- Nasdaq Files With SEC to Allow Trading of Tokenized Stocks
- US Lawmakers Seek Treasury Report on Feasibility, Security of Government-Held Bitcoin
- Senator John Kennedy Says GOP Not Ready To Advance Crypto Bill
- Tether Coming to America: Reveals 'US-Regulated' USAT Stablecoin, With Its Own CEO
Other International Regulation Updates
- President Bukele says El Salvador purchased 21 BTC to mark bitcoin law anniversary
- Metaplanet Sets $1.45B Share Sale to Fund Bitcoin Purchases, Treasury Shift
Pain & Gain
Pain
- SwissBorg crypto platform loses over $40 million in SOL
- Kiln exits Ethereum validators in safety move after SwissBorg's $40 million hack
- JPMorgan says S&P 500 rejection of Strategy is a 'blow to crypto treasuries'
- Bitcoin Hash Rate, Difficulty Hit Record Highs as Miner Supply Spikes
Gain
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 is a Managing Partner at MJL Capital, helping lead Portfolio Research and Investor Relations.
