In markets
The total crypto market cap plunged from A$6.15 trillion (US$4.03T) down to A$5.64T (US$3.7T) this week, before recovering over the past couple of days to A$5.98T (US$3.93T). There didn’t appear to be any one single catalyst, but concerns over interest rates, insider trading among DATS, plus President Trump’s latest 100% tariffs on pharmaceuticals and foreign films, as well as geopolitical instability, aren’t helping. The US government also looks headed for yet another shutdown, and given Trump presided over a 35-day shutdown back in 2018, the game of chicken could last for some time. US labour market figures come out this week, which could shake things up too.
The Ethereum ETFs lost A$1.21 billion (US$795.8M) to outflows, and the Bitcoin ETFs lost A$1.36 billion (US$897.6M). However, Bitcoin finishes the week up 1.5% on seven days ago to trade around A$173,813 (US$114,376), and Ethereum was up 0.9% to trade around A$6,416 (US$4,216). The Crypto Fear and Greed Index is at 50 or neutral. The good news is that Uptober averages a 21.89% return historically.
In Headlines
Tether to become world’s second-largest private company
Tether is in discussions to raise US$15 billion to US$20 billion (A$22.9B to A$30.5B) in a private round that values the company at US$500 billion (A$763B). That would make it the second most valuable private company in the world after OpenAI, and if it were a bank, it would be the second largest. CEO Paolo Ardoino said it needs the funds to “maximise the scale” of Tether’s businesses, which now encompass decentralised AI, Bitcoin mining, communications and media.
Ethereum back on top for USDT
Ethereum has snatched the Tether stablecoin crown back from TRON, which it fell behind in March. According to The Block, Ethereum now has US$80 billion (A$122B) of USDT, which the publication attributed to tradfi increasingly adopting stablecoin rails. There are nearly 1 million stablecoin transactions per day on Ethereum.
Draft crypto legislation
Assistant Treasurer Daniel Mulino has finally unveiled the Government’s draft proposed legislation for digital assets in Australia. Exchanges and custody firms would be regulated by ASIC under the Corporations Act, and companies would need an Australian Financial Services Licence to operate. Penalties for non-compliance are steep, with fines up to A$16.5 million (A$10.8M), three times any benefit obtained, or 10% of annual turnover. Startups processing less than A$10M (US$6.6M) would be exempt. Submissions on the draft are due by October 24. The laws “legitimise the good actors and shut out the bad,” according to Mulino.
Staked ETH ETF launches
Smaller ETF issuer REX-Osprey has launched the first staked Ether ETF called ESK. The issuer has been doing an end run around the major issuers, launching various ETFs, including staked Solana and Dogecoin funds under the 1940 Investment Company Act rather than the 19b-4 filing process. The SEC recently delayed decisions on staked ETH ETF applications from BlackRock, Fidelity and Franklin Templeton. ETF analyst Nate Geraci believes that a number of Solana staking ETFs could be approved by mid-October, however, the SEC just told a bunch of issuers to scrap their 19b-4 applications and reapply under the new generic listing rules. In other crypto ETF news, Vanguard is preparing to finally offer crypto ETFs on its brokerage platform.
SWIFT messaging system on ETH L2?
The SWIFT international banking communications platform is exploring migrating its systems to Ethereum L2 Linea, according to The Big Whale. Global financial institutions involved in the project include BNY and BNP Paribas. “The project will take several months to materialise, but it promises an important technological transformation for the international interbank payments industry,” an anonymous source said. The official announcement from SWIFT overnight did not mention Linea by name, but does talk of “a shared digital ledger” for cross-border payments involving 30 financial institutions. SWIFT has partnered with Joe Lubin’s Consensys, which operates Linea on the project, so it might end up using Linea’s ZK EVM technology to create its own chain or L2.
Insider trading of DATs
The Wall Street Journal reports that the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have contacted more than 200 digital asset treasuries (DATs) regarding potential insider trading. The investigation examines higher-than-average trading volumes for stocks leading up to the announcement that they were pivoting to a crypto treasury company. Somewhat ironically, insiders who appear to have caught wind of the investigation and sold out are also being investigated.
Cloudflare’s new stablecoin for AI
Cloudflare recently announced that website owners could block access to AI web crawlers, or charge them a fee for accessing content. The firm has now unveiled NET dollar, a US-pegged stablecoin for agents to make payments and conduct transactions in. CEO Matthew Prince said such transactions could replace ads and bank transfers as the web’s core business model. Cloudflare has also contributed to new standards, including the Agent Payments protocol.
ETH DATs scoop up cheap ETH
Bitmine used this week’s dip to amass 234,850 ETH, worth ~US$949.5 million (A$1.45B). The firm recently raised another US$365 million (A$557M) from stock market investors and now holds 2,650,900 million ETH. Sharplink Gaming has also bought another 102,000 ETH, while ETHZilla bought another 88,000 ETH to take advantage of cheaper prices. Sharplink Gaming has also just issued its own tokenised shares on Ethereum. The tokens can be self-custodied, and the firm said it was exploring ways they could be used in DeFi.
Plasma launch
A new stablecoin-focused layer one blockchain, Plasma, launched this week, with its token XPL shooting to a US$4.09 billion (A$6.24B) market cap and becoming the 45th largest crypto in a week. The chain has amassed more TVL in a week than Base has in total. It offers free stablecoin transfers, high XPL incentives for depositing funds, and the Plasma One neobank offers 4% cashback on spending.
China opens Shanghai digital yuan hub
China’s central bank has established a new digital yuan operations centre in Shanghai to accelerate the use of the e-CNY in cross-border payments, blockchain-enabled services, and digital asset platforms. The initiative is part of China’s ambition to internationalise the yuan and reduce reliance on the U.S. dollar in trade and finance.
South Korea’s task force aims at crypto oversight
South Korea’s ruling Democratic Party has launched a Digital Asset Task Force with the goal of passing stablecoin and virtual asset legislation by the end of 2025. The move follows data showing that US$40.6 billion in digital assets flowed abroad in Q1 2025, roughly half of that value channelled through stablecoins like USDT and USDC. The new task force intends to create a won-based stablecoin policy and hopes to position South Korea as a global leader in the digital asset market.
Kazakhstan launches Evo stablecoin
Kazakhstan has launched its first national stablecoin, Evo (KZTE), pegged to the tenge and issued jointly by Intebix and Eurasian Bank within the central bank’s regulatory sandbox. Backed by partners including Solana and Mastercard, the project aims to bridge traditional finance and crypto. This initiative follows Kazakhstan’s digital tenge rollout in 2023 and aligns with its broader digital asset strategy as a regional leader in tokenisation and payments infrastructure.
Independent Reserve @ TOKEN2049
TOKEN2049 starts tomorrow, and Independent Reserve is excited to be there this year. Whether you’re there seeking solutions to your crypto needs or just looking to connect with industry professionals, we’re always more than happy to chat.
Keep an eye out for us @ Level 4, Booth 39!
