🔮Got GOX, CZ Pardon, JPMorgan Comes Around, Stablecoin Volume, BTC and Gold

Top Stories

Aave Captures 82% of Ethereum Lending Market as DeFi Consolidates

Aave now commands 82% of all outstanding debt on Ethereum, cementing its role as the dominant lending protocol and reflecting years of steady growth across multiple market cycles. The platform facilitates about $25 billion in active loans and serves nearly 1,000 daily borrowers, with total value locked at roughly $50 billion. This consolidation highlights user preference for deep liquidity, proven security, and reliable infrastructure, marking a broader “flight to quality” within DeFi lending. Aave’s advanced features—such as flash loans and efficiency mode—have made it a core layer for leverage, yield strategies, and capital efficiency in the Ethereum ecosystem. While emerging platforms continue to experiment with new mechanisms, Aave’s scale and resilience suggest it will remain the sector’s central money market for the foreseeable future.

Source: The Block

Mt. Gox Delays Creditor Repayments to October 2026

The Mt. Gox rehabilitation trustee has postponed creditor repayments until October 31, 2026, extending one of crypto’s longest-running restitution efforts. Trustee Nobuaki Kobayashi cited incomplete procedures and processing issues as key reasons for the delay, which was approved by a Tokyo court. While most base and early repayments have been completed, many creditors remain unpaid, prompting the extension. Around 19,500 creditors have received funds so far, and Mt. Gox still holds roughly 34,689 BTC, worth nearly $4 billion. The exchange, which collapsed in 2014 after losing 850,000 BTC, has repeatedly pushed back its repayment timeline since its 2021 civil rehabilitation plan was approved. Analysts said the delay could ease near-term selling pressure, as previous announcements have often triggered fears of large-scale Bitcoin liquidations. Despite the setbacks, experts believe market liquidity today can absorb eventual repayments without major disruption.

Stablecoin Transaction Volume Surges 83% to $4 Trillion, Now 30% of All Crypto Activity

Stablecoins have seen explosive growth, with total transaction volume rising 83% between July 2024 and July 2025 to surpass $4 trillion, according to TRM Labs. They now account for 30% of all crypto transaction volume, as institutions and individuals increasingly use them for payments, remittances, and settlement. The market remains highly concentrated, with Tether (USDT) and Circle (USDC) controlling 93% of supply and over 90% of fiat-backed stablecoins pegged to the U.S. dollar. TRM’s Angela Ang said stablecoins are “still only a fraction of the overall money supply,” emphasizing that institutional adoption is just beginning. While 99% of stablecoin activity is legitimate, they now make up 60% of illicit crypto transactions due to their speed and liquidity. South Asia led global adoption with India, Pakistan, and Bangladesh among the top countries by transaction volume, highlighting the growing role of stablecoins as a practical alternative to volatile fiat systems and an increasingly central pillar of the digital economy.

Source: TRM Labs

Robinhood Expands Tokenized Stocks on Arbitrum, Deepening TradFi–Crypto Convergence

Robinhood expanded its tokenized stock lineup on Arbitrum this week, adding 80 new U.S. stocks and ETFs to reach 493 total tokenized assets worth over $7 million, driven by $20 million in cumulative mints versus $14 million in burns. About 65% of the assets are stocks, 29% ETFs, and 6% other products such as commodities, ETNs, and U.S. Treasuries. Top holdings include GOOGL ($765K), BMNR ($400K), VOO ($390K), HOOD ($304K), and TSLA ($278K). Targeting EU investors under MiFID II with 24/5 trading, the expansion underscores Robinhood’s growing role in bridging traditional finance and blockchain markets. Tokenized equities have emerged as the leading real-world asset (RWA) segment of 2025, with competitors like Ondo Global Markets ($300M+ TVL), Dinari dShares, and Backed Finance’s xStocks advancing the space. Meanwhile, Galaxy Digital’s onchain GLXY shares on Solana and Centrifuge’s SPXA S&P 500 fund on Base further highlight the accelerating institutional embrace of tokenized public markets.

Regulation

Bitcoin Lags Gold as Risk-Off Flows Drive Safe-Haven Demand

Bitcoin has underperformed gold for nearly two months, with the BTC/GOLD ratio falling about 30% from 36.7 in mid-August to roughly 25, its lowest level since April’s tariff-induced market turmoil. Over the same period, Bitcoin declined more than 12% while gold surged around 30%, making it one of the best-performing assets of late. The divergence stems from investors rotating into risk-off positions amid tariff headlines and global trade frictions, reinforcing gold’s role as a traditional safe haven. Meanwhile, Bitcoin continues to trade as a high-beta risk asset. The “debasement” narrative—fueled by expectations of further Federal Reserve rate cuts and concerns over persistent fiscal deficits—has also strengthened gold’s bid, with demand supported by individuals, central banks, and sovereign reserves positioning for long-term fiat erosion.

Source: The Block

FalconX Acquires 21Shares to Expand Institutional Crypto Offerings

FalconX, a U.S.-based institutional crypto prime broker, has agreed to acquire 21Shares, one of the world’s largest digital asset exchange-traded product issuers with over $11 billion in assets spanning Bitcoin, Ethereum, and multi-token ETPs. The deal follows FalconX’s recent launch of a 24/7 institutional derivatives platform and signals its deeper move into structured crypto products. The merger combines FalconX’s trading and prime-brokerage infrastructure with 21Shares’ global distribution and ETP expertise, positioning the new entity to serve as a full-spectrum platform for institutional investors seeking exposure through both derivatives and regulated investment vehicles.

President Trump Pardons Former Binance CEO CZ, Ending ‘War on Crypto’

President Trump has officially pardoned former Binance CEO Changpeng “CZ” Zhao, marking a major turning point in U.S. crypto policy. White House Press Secretary Karoline Leavitt declared that the Biden administration’s “war on cryptocurrency” was over, calling Zhao’s prosecution politically motivated and unsupported by evidence of fraud or victims. The Wall Street Journal first broke the story, though Binance has not yet issued a statement. Zhao, who served four months in prison and paid a $50 million fine as part of Binance’s 2023 $4.3 billion settlement, is now cleared of federal restrictions—but questions remain about whether he can return to lead the exchange given his lifetime industry ban under the plea deal. The pardon underscores Trump’s increasingly pro-crypto stance and signals a broader regulatory reset for the industry.

JP Morgan to Accept Bitcoin and Ether as Loan Collateral by Year-End

JP Morgan plans to allow institutional clients to use bitcoin and ether as collateral for loans by the end of 2025, according to Bloomberg. The global program will rely on a third-party custodian to safeguard pledged digital assets and expands upon the bank’s existing acceptance of crypto-linked ETFs as collateral. The move offers institutions new liquidity options without forcing them to sell long-term holdings, reflecting rising institutional demand for digital asset financing. CEO Jamie Dimon’s softened stance toward bitcoin aligns with JPMorgan’s broader strategic shift as major peers like Morgan Stanley, Fidelity, and BNY Mellon continue expanding crypto custody and lending services under clearer regulatory frameworks.

Other Domestic Regulation Updates

• Ripple vets and crypto heavyweights back $1 billion Evernorth SPAC to build largest public XRP treasury
• SpaceX moves $270 million worth of bitcoin in first transfer since July: Arkham
• Coinbase is buying crypto investment platform Echo for $375 million
• Legacy asset manager T. Rowe Price files for its first crypto ETF
• VanEck files for first Lido staked ETH ETF
• Crypto.com Files for National Bank Charter Following Circle, Stripe and Coinbase

Other International Regulation Updates

• Japan mulls allowing local banks to buy and sell crypto
• Coinbase, Robinhood Go Down for Hours Amid Widespread AWS Outage
• Thai regulators raid World iris scanning site in latest headache for Sam Altman

Pain & Gain

Pain

• Kadena winds down operations, KDA token drops 60%
• Class action lawsuit claims Ben Chow orchestrated Melania, Libra memecoin fraud
• Crypto Exchanges Begin Delisting Kadena After 65% Price Plunge on Shutdown Plans

Gain

• 'Ethereum investors buy the dip' amid $513 million in weekly global crypto ETP outflows: CoinShares
• Polymarket CMO confirms POLY token and airdrop plans
• Hyperliquid Strategies seeks $1 billion raise to expand HYPE treasury
• Fed rate cut bets lift BTC
• IBM Debuts 'Digital Asset Haven' Platform for Governments and Institutions