Crypto Currents: HSBC joins institutional wave of blockchain technology backing

A wave of institutional capital is pouring into crypto’s underlying infrastructure, as banking giants like HSBC and tech leaders including Sony and Samsung back key stablecoin and compliance firms. This corporate adoption comes as U.S. regulators signal a clearer, more innovation-friendly path forward, further bridging the gap between digital assets and traditional finance. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

HSBC JOINS JPMORGAN, WELLS FARGO IN BACKING ELLIPTIC: The institutional push for robust digital asset oversight is intensifying as another major bank invests in the industry’s compliance infrastructure. According to CoinDesk, blockchain analytics firm Elliptic has secured a strategic investment from HSBC (HSBC). This makes Elliptic the only firm in its sector to be backed by four global banking titans, a list that already includes JPMorgan Chase (JPM), Santander (SAN), and Wells Fargo (WFC). In a related move, stablecoin infrastructure startup Bastion raised $14.6M in a round led by Coinbase Ventures, the venture arm of Coinbase (COIN). Fortune reports that the round also saw participation from the venture arms of Sony (SONY) and Samsung (SSNLF). Bastion, led by former Meta (META) executive Nassim Eddequiouaq, provides white-label systems for companies to issue their own digital dollars without needing to build the technology or acquire regulatory licenses.

RIPPLE’S RLUSD GOES LIVE IN BLACKROCK, VANECK TOKENIZED FUNDS: The fusion of traditional finance and blockchain is accelerating as Ripple’s RLUSD stablecoin has been integrated into tokenized money-market funds from asset management giants BlackRock (BLK) and VanEck. CoinDesk reports that the integration provides a 24/7 off-ramp for investors, allowing them to swap shares in the funds for the stablecoin on demand, thereby boosting liquidity. This development follows recent moves by DBS and Franklin Templeton (BEN) to utilize the stablecoin for their own tokenized asset projects.

TETHER EXPLORES $20B RAISE AT $500B VALUATION: The scale of the stablecoin market is attracting enormous private valuations. Bloomberg is reporting that Tether, issuer of the world’s largest stablecoin, tether (USDT-USD), is exploring a fundraising round of up to $20B that could value the firm at approximately $500B. The potential valuation underscores the massive growth and central role Tether plays in the digital asset economy.

CFTC CHAIR CALLS COLLATERAL THE ‘KILLER APP’ FOR STABLECOINS: U.S. regulators are signaling a clearer path forward for digital assets in institutional markets. CoinDesk has learned that the U.S. Commodity Futures Trading Commission is launching an initiative to permit stablecoins as a form of tokenized collateral within the derivatives market. In a statement, acting CFTC Chairman Caroline Pham called collateral management the “‘killer app’ for stablecoins in markets.” This move aligns with a broader push for regulatory cooperation, as SEC Chair Paul Atkins told Fox Business he is working “hand in glove” with the CFTC. Atkins also stated his goal is to see a comprehensive market structure bill passed by the end of the year, a development that would substantially reduce regulatory uncertainty for institutional investors.

RESERVEONE, LED BY MINING VETERANS, FILES FOR $1B SPAC: The flow of crypto-native firms to the public markets is set to continue, offering stock investors new avenues for exposure. Digital asset treasury firm ReserveOne has confidentially filed for a proposed $1B Nasdaq listing through a SPAC merger with M3-Brigade Acquisition V Corp. (MBAV), according to a company press release. The firm intends to build a diversified treasury composed of cryptocurrencies including bitcoin (BTC-USD), ether (ETH-USD), and solana (SOL-USD). Its leadership team features veterans from publicly traded miners Hut 8 (HUT) and Riot Platforms (RIOT), as well as from Coinbase Asset Management.

PRICE ACTION: As of time of writing, bitcoin was trading at $113,919.99, while ether was trading at $4,200.30, according to price data from CoinDesk.