Top Stories
Hyperliquid’s USDH Threatens USDC’s Exchange Stronghold
USDC remains the second-largest stablecoin at $72B, heavily distributed through exchanges like Coinbase (23%), Binance (14%), and Hyperliquid (8%). This integration has been core to Circle’s success, but Hyperliquid’s push for a native USDH stablecoin could reshape allocations. All USDH issuer proposals commit to funneling yield into HYPE token buybacks, directly rewarding stakeholders, unlike Circle’s model where treasury yield flows to Circle’s bottom line. If Hyperliquid transitions away from USDC, it would mark one of the biggest shifts in stablecoin market structure in years. Still, Circle retains a strong edge in U.S. markets, where USDC’s regulatory compliance and institutional relationships keep it the default digital dollar.
Source: The Block
Base Explores Native Token Amid Ecosystem Growth
Coinbase-backed Ethereum Layer 2 Base is exploring the launch of a native token, marking a shift from its earlier stance of using ETH exclusively for gas. Jesse Pollak announced the potential move at BaseCamp, with CEO Brian Armstrong clarifying that no definitive plans are set. Base suggested a token could advance decentralization and expand opportunities for builders, while emphasizing regulatory alignment. The update comes alongside Base’s progress toward Stage 1 decentralization and the unveiling of a new open-source bridge linking Base and Solana ecosystems.
Pump Not So Fun
Pumpfun’s “Project Ascend” program briefly lit up the crypto streaming scene, paying out $21 million in creator fees over the past week and pushing tokens like Bagwork to a $52M peak. But the momentum unraveled after Bagwork stealth-launched and deleted an NFT drop, triggering a 90% crash in its token. Alex Becker’s streaming coin also tumbled from a $16M high to $6M, while TikTok star Yskaela’s token stalled under $500K and faced scam accusations. What began as a promising new creator economy meta has quickly soured, leaving the ecosystem scrambling for stability.
Source: Dune
Ethereum Sets December Date for Fusaka Upgrade
Ethereum developers have scheduled the Fusaka upgrade for Dec. 3, 2025, moving faster than expected to boost rollup scalability and lower transaction costs. The upgrade will raise blob capacity in stages, first to 10/15 blobs per block and later to 14/21, giving rollups more space for data without overloading the network. Testing on Devnet-5 surfaced bugs in the Prysm client and blob verification software, but fixes are underway with further checks on Devnet-6 planned before mainnet launch. Fusaka follows May’s Pectra upgrade and reflects Ethereum’s urgency to expand throughput while managing risk through gradual parameter increases.
Polymarket’s Regulated Relaunch and Kalshi Showdown
Polymarket secured a CFTC no-action letter tied to its $112M acquisition of QCX, paving the way for a U.S. relaunch and a potential $9–10B valuation, up from $1B in June. Its new Earnings prediction markets with Stocktwits, plus a Chainlink integration, expand use cases for equity hedging and faster resolutions. Still, Kalshi leads near-term activity, running ~62% of volume versus Polymarket’s 37%, with faster turnover reflected in its lower OI/volume ratio (~0.29 vs. Polymarket’s ~0.38). As Polymarket’s quicker-resolving products scale, its metrics may begin to converge with Kalshi’s.
Source: Dune
Regulation
Public Companies Accelerate ETH and SOL Accumulation
Public companies now hold 2.57% of the total ETH supply, a sharp rise from just 0.05% three months ago, suggesting ETH’s corporate adoption could eventually rival BTC, where holdings stand at 4.03%. SOL is also seeing rapid institutional inflows, with public companies holding 0.87% of supply (about 4.71M SOL), up 15% in just two weeks. Forward Industries’ $1.65B Solana treasury program and Helius Medical Technologies’ $500M Pantera- and Summer Capital–backed DAT highlight growing momentum. With SOL up more than 20% this month, its trajectory is beginning to mirror ETH’s earlier surge in corporate treasuries.
Google Unveils Stablecoin-Enabled AI Payments Protocol
Google has launched an open-source payments protocol that enables AI agents to transact using both card networks and U.S. dollar–backed stablecoins. Built with Coinbase and over 60 partners including Salesforce, American Express, and Etsy, the protocol ensures user consent, guardrails, and settlement across traditional and onchain rails. The move builds on Google Cloud’s Universal Ledger pilot and signals an effort to merge crypto with institutional payment systems as AI agents gain traction in commerce. It comes as the Ethereum Foundation revealed a decentralized AI team, underscoring competition to shape the financial layer of the AI economy.
First U.S. Spot Dogecoin and XRP ETFs Launch
REX Shares and Osprey Funds debuted the first U.S. spot Dogecoin ETF (DOJE) and spot XRP ETF (XRPR) on Thursday, both structured under the Investment Company Act of 1940. While advocates hailed the launches as milestones, analysts noted the ’40 Act framework may limit initial trading activity compared to traditional ’33 Act crypto ETFs. The SEC simultaneously approved new exchange listing standards, fast-tracking crypto ETF approvals and potentially enabling over 100 new launches in the next year. Bloomberg’s Eric Balchunas highlighted Coinbase Derivatives’ futures markets as key enablers, covering assets like DOGE, SOL, ADA, and XRP.
Wallets Are Becoming the Browsers of DeFi
MetaMask’s move to integrate perpetuals through Hyperliquid highlights how wallets are transforming from passive key managers into DeFi super apps, with Phantom, Trust Wallet, and others following the same path by embedding trading, lending, and prediction markets directly into their interfaces; this shift positions wallets as the central gateways of DeFi, where a MetaMask token could capture value across the ecosystem, but it also raises concerns around concentration of power, protocol disintermediation, and embedding speculative products into what was once neutral infrastructure, signaling that wallets may ultimately become the browsers of decentralized finance.
Other Domestic Regulation Updates
- Dogecoin treasury firm CleanCore adds 100 million more DOGE
- SEC approves Grayscale's multi-crypto ETF with XRP, SOL and ADA
- White House eyes other candidates for CFTC chair as Quintenz confirmation stalls
- NY financial regulator urges banks to adopt blockchain analytics to combat illicit activity
Other International Regulation Updates
- Bitcoin Goes Slack as US Strike on Venezuela Sparks Turmoil Ahead of Fed Meeting
- Metaplanet Stock Slides as Top Japanese Bitcoin Treasury Sets Up Shop in Miami
- Canada Seizes $56M in Bitcoin, XRP and Other Crypto as It Shutters Exchange TradeOgre
Pain & Gain
Pain
- A quarter of public bitcoin treasury companies now trade below their BTC holdings
- What's Up With the Golden Trump Bitcoin Statue That Was in Washington DC?
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.
