TL;DR

Circle IPO surges; JPMorgan accepts Bitcoin ETFs as loan collateral; stablecoin supply tops $250B.

Highlights

• Circle raised $1.1B in its NYSE IPO, opening 123% above the $31 offer price, signaling strong institutional demand for crypto equities 1.
• JPMorgan will accept BlackRock ’s IBIT and other Bitcoin ETFs as loan collateral globally, integrating crypto ETFs into client net worth and lending 2.
• SEC Chair Gensler confirmed banks will soon custody Bitcoin ; JPMorgan to offer financing against Bitcoin ETFs 3.
• Hong Kong SFC will legalize crypto derivatives trading for professional investors, opening access to a $21T Q1 market 4.
• BlackRock added $4B in Ethereum and $284M in Bitcoin via ETFs; spot BTC and ETH ETFs saw renewed inflows 6.
• Stablecoin supply surpassed $250B (up 50% YoY), with PayPal and USDT leading; projections see $3T by 2030 11.
• PancakeSwap hit $173B in monthly DEX volume; stablecoin trading and market cap surged, led by USDT and USDC 10.
• Hyperliquid captured 80% of DeFi perpetuals volume in May ($250B), with HYPE token and TVL at record highs 9.
• Bitcoin-backed loans on Coinbase /Morpho Labs exceeded $500M; onchain borrowing hit $24B, with stablecoin borrow rates dropping 14.
• MoonPay secured NY BitLicense and Money Transmitter License, enabling direct crypto services nationwide, including via Venmo, PayPal, and Apple Pay 5.
• Bluebird Mining and K Wave Media announced Bitcoin treasury strategies, both stocks jumped post-announcement 1213.
• California Assembly passed bills to allow state crypto payments and regulate unclaimed digital assets 19.
• Security risks elevated: Crocodilus Android trojan targets crypto wallets globally; PumpFun meme token platform saw over 300,000 wallets lose money 87.

Commentary

Crypto’s integration with traditional finance accelerated this week. Circle ’s NYSE debut, with shares opening well above the IPO price, demonstrated robust institutional appetite for regulated crypto infrastructure 1. JPMorgan ’s acceptance of Bitcoin ETFs as loan collateral and the SEC’s confirmation that banks will custody Bitcoin signal further normalization of digital assets within mainstream financial services, likely expanding both market participation and liquidity 23.

In parallel, Asia’s regulatory landscape is evolving. Hong Kong’s move to legalize crypto derivatives for professional investors opens a $21 trillion quarterly market to institutional players, reinforcing the region’s growing role in global crypto flows 4. Meanwhile, BlackRock ’s continued accumulation of both Ethereum and Bitcoin via ETFs, alongside strong inflows into spot ETFs, reflects persistent institutional demand and may support price stability for major assets 6.

Stablecoins remain a key liquidity driver, with total supply surpassing $250 billion and trading volumes up sharply 11. PancakeSwap and Hyperliquid both posted record volumes, highlighting the competitive growth of DeFi and DEX platforms 109. The lending sector is also rebounding, as Bitcoin-backed loans on Coinbase /Morpho Labs surpassed $500 million and onchain borrowing reached $24 billion, supported by falling stablecoin borrow rates and new DeFi integrations 14.

On the regulatory and infrastructure front, MoonPay’s nationwide licensing expands fiat-to-crypto access across the US 5, while California’s legislative progress on crypto payments and unclaimed assets suggests a more defined regulatory environment 19. Public companies like Bluebird Mining and K Wave Media adopting Bitcoin treasury strategies indicate broader corporate interest in digital assets as balance sheet tools 1213.

Security remains a significant concern. The Crocodilus Android trojan’s global spread and widespread losses on PumpFun underscore persistent risks for both individual users and protocols 87. Traders should maintain strong operational security, especially as user-targeted attacks outpace smart contract vulnerabilities.