Tether is reportedly seeking to raise between $15 billion and $20 billion through a private placement, which could elevate its valuation to approximately $500 billion. This valuation would position Tether among elite companies like OpenAI and SpaceX, highlighting its significant market presence as the issuer of the largest stablecoin, USDT, which currently has a market cap of around $172.8 billion. The fundraising comes on the heels of Tether's impressive financial performance, reporting a net profit of $4.9 billion in Q2 2025, alongside substantial reserves of over $162.5 billion. The company is in the early stages of discussions, and while the final amount raised may be lower, the interest from prospective investors is notable, as they have been given access to a data room to facilitate the deal.
Morgan Stanley is set to deepen its involvement in digital assets by partnering with Zerohash to enable E*Trade clients to trade Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) starting in the first half of 2026. This initiative marks a significant step in Wall Street's integration of cryptocurrency into mainstream financial services, allowing clients to access both traditional and digital assets within a single ecosystem. Additionally, the recent $104 million funding round for Zerohash, led by Morgan Stanley and Interactive Brokers, underscores the growing institutional demand for crypto infrastructure. This funding will support Zerohash's ambitions to expand its product offerings, further solidifying its role in the evolving landscape of digital asset trading.
Recent market activity has seen Bitcoin and Ethereum ETFs suffer combined outflows of $439.1 million, with Bitcoin funds alone losing $363.1 million. This trend indicates a profit-taking phase among investors, coinciding with broader market volatility and uncertainty surrounding macroeconomic indicators. As Bitcoin's price hovers around $112,000, analysts suggest that the recent outflows could signal a temporary cooldown rather than a bearish trend. The market is closely watching upcoming economic data, which could influence future price movements and investor sentiment.
The significant fundraising efforts by Tether and the strategic moves by Morgan Stanley reflect a broader trend of institutional adoption in the cryptocurrency space. As traditional financial institutions increasingly integrate digital assets into their offerings, the market is likely to see enhanced liquidity and a more robust infrastructure for trading. This shift could pave the way for greater acceptance of cryptocurrencies as legitimate investment vehicles, potentially leading to increased participation from both retail and institutional investors. The evolving landscape suggests that the cryptocurrency market may be on the brink of a new phase of growth and integration into mainstream finance.
Tether is looking to raise between $15 billion and $20 billion for about a 3% stake in the company through a private placement, which would bring its valuation to $500 billion. The company reported a net profit of $4.9 billion in the second quarter and holds over $162.5 billion in reserves against $157.1 billion in liabilities. Additionally, Tether has about $8.9 billion in bitcoin in its reserves.
Bitcoin (BTC) has been facing significant pressure, recently defending the $112,000 support level after a notable $190 million in long liquidations. Despite this, the cryptocurrency has struggled to maintain upward momentum, trading below its 50-day simple moving average, which indicates potential near-term weakness. The broader crypto market has shown some resilience, with the CoinDesk 20 Index rising over 1%, but Bitcoin's performance remains a focal point as it has dropped over 3% this week to around $111,590, raising concerns about a deeper decline towards the $107,000 liquidity cluster identified by analysts. This level is seen as a potential magnet for price movement, suggesting that further selling pressure could be on the horizon if retail sentiment shifts from bullish to bearish.
The altcoin market has seen considerable volatility, with approximately $8 billion wiped out as trading volumes on major exchanges like Binance decreased. Notably, the decentralized AI operating system Og AI's (Zero Gravity) OG token surged over 50% following its mainnet launch, which has significantly boosted its market cap to $1.23 billion and daily trading volume to $3.3 billion. Other altcoins like Avalanche's AVAX also performed well, rising by 10%. This surge in specific altcoins contrasts sharply with the overall downturn in the altcoin market, highlighting a divergence in performance among different tokens.
Despite Bitcoin's recent struggles, analysts like Arthur Hayes project a bullish long-term outlook, suggesting that Bitcoin could reach $3.4 million by 2028 driven by fiscal expansion and increased investor demand. This optimism is juxtaposed with the current market sentiment, where mentions of "buy the dip" have surged, indicating a potential contrarian signal. However, the prevailing trend suggests caution as liquidity trends indicate a possible further decline in Bitcoin's price. The ongoing developments in the regulatory landscape, particularly regarding stablecoins and derivatives, could also influence market dynamics moving forward.
Coinbase's Layer 2 network, Base, has garnered significant attention, holding $15 billion in assets since its launch in August 2023, despite peaking at over $16 billion earlier this year. Ethereum founder Vitalik Buterin commended Base for its balance between centralized user experience improvements and decentralized security, emphasizing that Layer 2 networks serve as extensions of Ethereum, providing non-custodial security for users. Critics have raised concerns about the potential risks associated with Base's centralized features, but Buterin's endorsement highlights the network's strategic approach to enhancing user experience while maintaining security standards.
Cloudburst Technologies has successfully raised $7 million in a Series A funding round to advance its off-chain crypto intelligence platform. Unlike traditional blockchain analytics firms that focus on on-chain activity, Cloudburst specializes in analyzing off-chain data sources, such as chatrooms and regulatory filings, to monitor fraud networks and illicit activities. The funding will support the expansion of its AI and data science teams, aiming to provide real-time intelligence and predictive insights to various stakeholders, including regulators and law enforcement agencies, thereby enhancing the overall security landscape of the crypto ecosystem.
Bitget has announced a significant upgrade to its Onchain feature, allowing users to trade, stake, and manage millions of on-chain tokens across four major blockchains—Ethereum, Solana, BSC, and Base—from a single account. This enhancement positions Bitget as a comprehensive gateway to the decentralized economy, offering a user-friendly experience that combines the benefits of decentralized markets with the security of centralized exchanges. The upgrade aims to streamline the trading process for users, reducing the complexity of managing multiple accounts across different blockchains.
Orderly Network has introduced a platform that enables users to create their own perpetual decentralized exchanges (DEXs) without any coding knowledge. This initiative is designed for decentralized autonomous organizations (DAOs) and trading communities, allowing them to establish revenue streams through crypto trading in a decentralized environment. The platform facilitates the creation of perpetual DEXs, which are crucial for leveraging trading capabilities, thereby enhancing user autonomy and reducing reliance on centralized exchanges. This development further promotes the decentralization of trading protocols and governance.
The U.S. Commodity Futures Trading Commission (CFTC) has announced a new initiative allowing stablecoins to be used as tokenized collateral in derivatives markets. Acting chair Caroline Pham described this move as a transformative step towards modernizing financial markets by integrating non-cash collateral, which is expected to lower costs and enhance liquidity. The initiative aims to position stablecoins, such as USDC and USDT, on par with traditional cash collateral, reflecting a significant shift in collateral management practices within the derivatives landscape.
The FTX Recovery Trust has initiated a lawsuit against Genesis Digital Assets, seeking to recover $1.15 billion. The lawsuit alleges that former CEO Sam Bankman-Fried misappropriated customer funds to purchase shares in Genesis at inflated prices through Alameda Research, a hedge fund he controlled. The complaint details that between August 2021 and April 2022, Alameda invested $1.15 billion across four funding rounds, with significant payouts to Genesis co-founders totaling $550 million and $80.9 million, respectively, for their shares in February 2022. This legal action is part of ongoing efforts to address the fallout from FTX's collapse in late 2022 and aims to claw back funds for creditors and customers affected by the mismanagement of assets.
Kraken's co-CEO Arjun Sethi announced a total donation of $2 million to pro-Trump political action committees, emphasizing the importance of individual rights in the digital age. This move aligns with a broader trend among crypto firms to engage in political advocacy, particularly concerning regulatory frameworks that impact privacy and operational freedoms in the crypto space. The funding aims to support initiatives that protect crypto infrastructure from being criminalized.
The U.S. Securities and Exchange Commission (SEC) is working towards establishing new rules for crypto firms, with a target for completion by the end of 2025. SEC Chairman Paul Atkins highlighted the agency's intent to provide a stable framework for innovation within the crypto sector, including potential exemptions for new products. This initiative follows a recent move to simplify the listing process for exchange-traded products (ETPs) that hold cryptocurrencies, which aims to lower barriers for market entry.
The European Central Bank (ECB) is eyeing a potential launch of a digital euro by 2029, following recent advancements in political discussions regarding customer holding limits. ECB Executive Board member Piero Cipollone indicated that the framework for the digital euro is progressing well, with member states expected to reach a consensus by the end of the year. This initiative aims to reduce reliance on private payment systems and bolster the euro's position in the digital payments landscape.
Brazil's central bank has released a consultation paper proposing new regulations for the forex sector that could indirectly affect crypto exchanges. While the proposals do not explicitly mention crypto, they aim to bring forex platforms under regulatory oversight, including transaction caps and enhanced transparency requirements. These changes could impact crypto exchanges facilitating international transfers or transactions involving currencies other than the Brazilian real, with a consultation period running until November 2.
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