US Regulator Proposes Framework for Bank-Issued Stablecoins

The US is moving closer to regulating bank-issued stablecoins, with the Federal Deposit Insurance Corp. (FDIC) proposing a framework for insured banks to issue payment stablecoins under the GENIUS Act. This development could reshape the digital dollar landscape and provide clearer rules for institutions seeking to mint stablecoins.

FDIC Proposes Framework for Bank-Issued Payment Stablecoins

The FDIC has published a 38-page document outlining proposed approval requirements for bank subsidiaries to issue payment stablecoins. The proposal is subject to a public consultation process before any rules are finalized. Under the proposed framework, financial institutions would need to apply to issue a stablecoin through a subsidiary, with the FDIC evaluating both the parent company and the issuing entity.

Applicants would also need to comply with the GENIUS Act's provisions related to issuance standards, reserve backing, and redemption policies. The proposal marks a significant step towards institutionalizing stablecoins and providing clarity for banking institutions.

American Bitcoin Overtakes ProCap in Corporate Bitcoin Treasury Race

American Bitcoin, a digital asset mining and holding company, has entered the ranks of the top 20 corporate Bitcoin holders, surpassing ProCap Financial. The company has added over 1,000 BTC to its reserves since December, with its total Bitcoin holdings now standing at 5,098 BTC, valued at approximately $452 million.

The shift highlights the growing competition among companies to accumulate Bitcoin, with American Bitcoin's shares experiencing sharp volatility reflecting the broader price swings typical of Bitcoin proxy stocks.

Anchorage Digital Acquires Securitize Advisory Unit to Expand Institutional Offerings

Anchorage Digital has acquired Securitize's investment adviser platform as part of a strategy to consolidate and expand its institutional investment services for registered investment advisers (RIAs). The platform is designed to serve RIAs and had already been using Anchorage for digital asset custody.

By bringing the platform in-house, Anchorage aims to integrate custody services with adviser-facing tools under a single platform. The acquisition marks a significant expansion of Anchorage's institutional offerings and reinforces its position as a leading provider of digital asset services.

Bhutan to Tap Bitcoin Holdings to Finance Special Administrative Region

The Kingdom of Bhutan, one of the world's largest state holders of Bitcoin, has announced plans to use a portion of its digital asset reserves to finance the Gelephu Mindfulness City (GMC), a planned special administrative region aimed at driving long-term economic growth.

The project is designed to serve as a new economic hub, focusing on sustainability and innovation, to curb Bhutan's brain drain while creating high-quality local jobs and attracting international investment. Bhutan currently holds over 11,000 BTC, and officials have indicated that multiple strategies are being considered for deploying the reserves.

Conclusion and Future Outlook

The proposed framework for bank-issued stablecoins, the growing competition among companies to accumulate Bitcoin, and the expansion of institutional investment services all point to a significant shift towards greater institutionalization and regulation in the crypto industry. As the industry continues to evolve, it is likely that we will see further developments in these areas, with potential implications for the future of digital assets and their role in the global economy.