Wu Says Zhou Highlights: Tether hires the Big Four for a full financial audit, US real estate accepts cryptocurrency-backed loans, Australia’s trillion-dollar pension plans to allocate digital assets, and Top 10 news

Author | Wu Talks Blockchain

Top 10 News This Week

1. The Clarity Act draft proposes to limit stablecoin yields, only allowing rewards based on user activity link

The latest draft of the “Clarity Act” proposes to impose restrictions on stablecoin yields, including a ban on paying yields on stablecoin balances, and requires that incentive mechanisms must not resemble bank deposit interest in form or effect, allowing only rewards based on user activity, though the specific mechanisms remain unclear; this provision is seen as a compromise outcome following the standoff between the crypto industry and the banking sector, which advocates for avoiding competition resembling deposit accounts.

CRCL’s stock plummeted 20% on Tuesday, marking its largest single-day drop since its listing, wiping out $5 billion in market value overnight; trading volume reached 56.4 million shares, nearly four times its 90-day average volume; the main trigger is believed to be the new draft of the Clarity Act that would stifle passive stablecoin yields.

2. The UK will ban cryptocurrency political donations and limit overseas voter contributions link

The UK government has announced a ban on using cryptocurrencies for political donations until the relevant regulatory framework is deemed sufficiently robust, while also setting an annual limit of £100,000 on political donations from overseas voters, including regulated transactions such as equivalent loans; these measures will be implemented through amendments to the Representation of the People Act with retroactive effect, requiring political entities to refund any illegal donations within 30 days after the law takes effect; these initiatives are based on recommendations from the Rycroft Review report, aimed at addressing foreign funding interference and the risk of untraceable funds.

3. Venezuela’s forex shortage intensifies, forcing SMEs to raise prices and turn to cryptocurrency settlements link

Due to US sanctions and the exclusion of the official forex distribution system, small and medium-sized enterprises in Venezuela are facing a severe dollar shortage crisis, with over half of surveyed companies reporting that the lack of forex has severely hindered production. It is reported that amidst a 13% year-on-year decline in forex auction volumes at the beginning of the year, the majority of dollar quotas are monopolized by large multinational companies. To maintain production, many local pharmaceutical companies and chemical factories are forced to turn to the unofficial market or use cryptocurrencies for cross-border raw material procurement and settlements, leading to skyrocketing local prices and pushing inflation rates up to 600%.

4. Fannie Mae and Freddie Mac accept cryptocurrency as collateral for mortgage asset assessment for the first time link

William Pulte, Director of the Federal Housing Finance Agency (FHFA), has instructed Fannie Mae and Freddie Mac to prepare proposals allowing cryptocurrencies to be considered reserve assets in single-family mortgage risk assessments. This directive marks the first time these government-sponsored enterprises (GSEs) have directly recognized the value of digital assets without requiring borrowers to first convert cryptocurrencies to dollars. Under the requirements, eligible crypto assets must be proven to be stored in U.S.-regulated centralized exchanges.

5. RBA: Asset tokenization could bring $24 billion in annual revenue, shifting focus to implementation paths link

The Reserve Bank of Australia (RBA) stated that asset and currency tokenization could bring approximately AUD 24 billion (about USD 16.7 billion) in efficiency revenue to the Australian economy every year, and has shifted its focus from “whether to advance” to “how to implement”; Assistant Governor Brad Jones noted in the Project Acacia report that stablecoins and bank deposit tokens will play complementary roles in the tokenization system, with stablecoins being suitable for smaller emerging markets while bank deposit tokens hold more significance in larger markets; the project has tested 20 use cases including government bonds, corporate bonds, repos, and investment funds, employing wholesale CBDCs, transaction settlement account balances, stablecoins, and deposit tokens as settlement methods; the RBA also revealed plans to launch a digital financial market infrastructure sandbox, establish a regulatory and industry tokenization advisory group, and expand the deposit token working group to address legal regulatory uncertainties, network effects, and coordination issues, stating that wholesale CBDCs “may be helpful but are not essential.”

6. Australian billion-dollar pension fund Hostplus plans to allow members to allocate BTC and other digital assets through Choiceplus link

Hostplus, one of Australia’s largest pension funds, is considering incorporating cryptocurrencies into its investment options. Hostplus manages assets exceeding AUD 150 billion (approximately USD 105 billion), and its Chief Investment Officer Sam Sicilia stated that the fund is exploring ways to offer members allocation channels for BTC and other digital assets through its Choiceplus investment option. Choiceplus allows members to manage their retirement savings portfolios independently, with assets under this option currently accounting for about 1% of the fund’s total size.

7. Stablecoin issuer Tether announces it has signed a cooperation agreement with a Big Four accounting firm link

Stablecoin issuer Tether announced it has signed a cooperation agreement with a Big Four accounting firm to conduct its first full independent financial audit. Tether stated that the audit will cover its digital asset reserves, traditional financial assets, and tokenized liabilities, providing greater transparency regarding whether USDT is fully backed by reserves. Currently, USDT has a market value of approximately USD 184 billion, with over 550 million users. Tether claims this move aims to enhance transparency and regulatory compliance.

Stablecoin issuer Tether’s plan to raise up to USD 20 billion in funding has been temporarily shelved as the company awaits the results of its first comprehensive financial audit before deciding whether to restart fundraising. Sources indicate that during the fundraising process, potential investors and banks have continually requested Tether to enhance its financial transparency. Previous reports stated that Tether initiated fundraising last year, aiming to raise between USD 15 billion and USD 20 billion, with a valuation of about USD 500 billion, which, if completed, would make it one of the highest-valued private companies globally.

This Friday, Tether has selected KPMG to conduct a comprehensive audit of its USD-pegged stablecoin USDT reserves, estimated at USD 185 billion, and has hired PwC to prepare internal systems for the audit, marking a significant step toward a complete financial audit; previously, the company had reached a formal cooperation agreement with a “Big Four accounting firm” but did not disclose the specific institution; this audit advance comes at a time when Tether is preparing for expansion in the U.S. and seeking USD 15 billion to USD 20 billion in funding, with investors expressing concerns about pricing and regulatory risks; the comprehensive financial statement audit will exceed the current monthly assurance scope provided by BDO Italia, covering assets, liabilities, internal controls, and reporting systems.

8. Morgan Stanley Bitcoin ETF receives NYSE listing announcement, may be launching soon link

Bloomberg senior ETF analyst Eric Balchunas stated that the Morgan Stanley Bitcoin ETF (MSBT) has received an official listing announcement from the NYSE, which typically indicates that the product is about to launch; he also noted that the fee rate for this ETF is worth paying attention to, expected to be around 0.24%, slightly lower than IBIT.

9. Coinbase: A “second wave” of institutional funds is entering the crypto market link

Brett Tejpaul, head of Coinbase’s institutional business, stated that institutional investors are shifting from merely betting on price increases to seeking stable returns based on existing BTC and ETH holdings, noting that “a second wave of institutional funds is happening.” This trend is driving the emergence of more “traditional cash/bond-like” on-chain yield products. He believes that institutional interest in stablecoins, asset tokenization, and 24/7, near-real-time settlement is growing, and as the regulatory framework in the U.S. gradually clarifies, more traditional financial institutions are evaluating the use of blockchain to enhance cross-border payment and capital efficiency.

10. Analysis: Tokenized private credit skyrocketed from USD 25 million to USD 6.01 billion within 12 months link

According to crypto analyst YashasEdu, tokenized private credit soared from USD 25 million to USD 6.01 billion within 12 months, with these funds being used as collateral in lending protocols, for mortgage loans, and integrated into DeFi yield strategies; however, these funds may pose contagion risks due to collateral quality risks, centralization risks, mismatches between legal timing and on-chain timing, among other issues. YashasEdu stated that tokenized private credit has several vulnerabilities, including a lack of standardized on-chain credit ratings, significant discrepancies in redemption mechanisms, and underlying loans lacking liquidity, predicting that this could lead to a significant on-chain credit default event in the future.

Key Financing Events

Tazapay announces completion of $36 million Series B extension financing, led by Circle Ventures link

Startale completes $63 million Series A financing, advancing stablecoin and RWA infrastructure link

Stablecoin startup Payy completes $6 million seed round financing link

Ethereum block builder Eureka Labs completes $6.7 million seed round financing link

Core Scientific announces additional $500 million financing commitment from JPMorgan link

Stablecoin trading platform XFX completes $17 million Series A financing, led by Castle Island Ventures link

For more industry financing events, please refer to crypto-fundraising.info.