Organizer: Cora
This Week's Focus
Tether's suspension of its financing plan, initiation of a comprehensive audit, and the advancement of the latest draft of the "CLARITY Act" signify that the stablecoin market will become increasingly competitive in terms of compliance. Tether's issuance of the USAT reserve report and the commencement of the USDT comprehensive audit also indicate its proactive approach to embracing compliance. However, Circle remains a strong competitor in the compliance race due to its first-mover advantage and extensive market base.
In the future, tokenized assets will be deeply integrated with traditional financial systems, forming a new pattern of "on-chain and off-chain collaborative development." Currently, giants like Invesco have begun to lay out their strategies: starting from the most compliant government bonds, using mature technology to build the minimum viable ecosystem, and continuously expanding diverse products. This transformation will not happen overnight, but each technological iteration and regulatory refinement paves the way for the ultimate realization of tokenization.
The technology stack for agency capital markets is no longer a set of disconnected underlying components. Payment, identity, capital formation mechanisms, and capital allocation infrastructures are converging into an integrated system. A system that allows autonomous agents to earn income, trade, and achieve capital compounding on-chain without human intervention.
Most people's understanding of Tether still remains at three to five years ago. Crypto media still regard it as a stablecoin issuer with trust issues. Mainstream media still see it as a potential scam. However, neither of these perspectives can explain what Tether has actually become while everyone else debates its old version.
Currently, there is no clear compensation plan disclosed for users who still hold USR after the attack or have suffered losses due to decoupling, and for RLP token holders who suffered losses due to the dilution of the insurance pool's value. The market is closely monitoring whether there will be further compensation for the affected user groups.
Selected Recommendations
Blockchain can now confidently claim its capability to compete with existing financial infrastructures. Current production systems can handle tens of thousands of transactions per second, with significant room for future improvements.
Emerging financial infrastructures, such as blockchain, aim to win trust like traditional finance and withstand errors, scandals, and market pressures. However, this is no easy task. It must think more proactively about how to win trust before winning users, as only by winning trust will users naturally follow. But the reverse may not hold true.
However, financial history repeatedly demonstrates that currency, while appearing to be part of commercial activities, is actually an institutional arrangement that easily triggers systemic consequences. Allowing banks to issue currency certainly improves market efficiency, but problems soon arise: if every bank can issue and their credits differ, it will ultimately lead to discounting, runs, and chaos.
In traditional acquiring systems, the issuer, acquirer, and card organization share all the unseen responsibilities: identity verification, risk screening, suspicious transaction reporting, and dispute resolution. Stablecoins eliminate every intermediate layer in this mechanism. At the moment the on-chain transfer is completed, none of these four tasks are being done by any party.
Today's mainstream models may soon be replaced by new optimization technologies; the current popular models will soon be eclipsed by more efficient architectures. In this environment, maintaining the ability to learn and adapt is more important than mastering specific skills. Therefore, individuals need to establish a habit of continuous learning, focusing on the latest developments in AI technologies and Token economies; actively trying new tools and methods, accumulating experience in practice; and building an interdisciplinary knowledge structure to understand the economic logic and social impacts behind the technology.
Ten News Items Not to Miss This Week
- Informed Sources: Tether has hired PwC as its auditing firm
- Ark Invest is using Kalshi prediction market data to assist in investment and risk management
- Alchemy Pay and HTF Securities have received an upgrade to Class 1 license from Hong Kong SFC
- The proposal in the US to "allow cryptocurrency in 401(k) retirement plans" has passed White House review
- The Dark Side of the Moon plans to go for IPO in Hong Kong and is in discussions with CICC and Goldman Sachs
- FuTu has launched a licensed virtual asset exchange "Cheetah Exchange"
- US SEC Chair: Tokenization innovation exemption may be introduced in the coming weeks
- The Hainan Provincial Local Financial Supervision Administration has issued a risk warning regarding illegal RWA trading
- Core Scientific's strategic financing has been expanded to $1 billion, securing an additional commitment of $500 million from JPMorgan
- Strategy has launched a maximum $44.1 billion ATM issuance plan, adding three sales agents
