USDInstitutional Crypto Boom: BlackRock, Deutsche Telekom, and Banks Make Moves
DekaBank Launches Crypto Services for Institutions; Citadel Securities Explores Market Making
DekaBank and Citadel Securities announced their entry into the cryptocurrency market. DekaBank, based in Frankfurt with approximately $395 billion in assets, launched trading and custody services for cryptocurrencies exclusively for institutional clients, following its acquisition of a crypto custody license from BaFin and the ECB last December. DekaBank is notably a founder of SWIAT, a blockchain platform for digital securities. In contrast, Citadel Securities, a significant global market maker managing over $63 billion in assets, is exploring its role as a liquidity provider for major crypto exchanges like Binance, Coinbase, and Crypto.com.
Citadel's plans include forming a market-making team outside of the U.S., contingent on regulatory developments. Both firms aim to leverage their expertise in financial markets to navigate the evolving landscape of digital assets while targeting institutional investors, who are deemed better equipped to manage associated risks.
Bank of America Set to Launch "Bank of America Coin" Pending U.S. Stablecoin Legislation
Bank of America is poised to launch its own stablecoin, tentatively named "Bank of America Coin," pending the passage of U.S. stablecoin legislation, as stated by CEO Brian Moynihan. He emphasizes that the stablecoin will be fully dollar-backed, drawing parallels to money market funds and bank accounts. This development comes as lawmakers, led by Senate Banking Committee Chairman Tim Scott, strive to establish a regulatory framework for stablecoins, with hopes of enacting the GENIUS Act within the first 100 days of President Donald Trump's administration.
The stablecoin market has surged to $232 billion amid a lack of regulation, presenting opportunities for new entrants. Bank of America, the second-largest U.S. bank with total assets of $3.26 trillion, aims to leverage this market, which could soon witness increased competition as firms like PayPal launch their own stablecoins. Moynihan foresees broad applications for stablecoins in payment systems.
Metro Department Store in Singapore Launches Stablecoin Payments with Dtcpay
Metro department store in Singapore has begun accepting stablecoin payments, allowing customers to use coins like Tether’s USDt, Circle’s USD Coin, and FD121’s First Digital USD in-store and online. This integration, facilitated by the Singapore-licensed crypto payment platform Dtcpay, aims to provide a seamless and secure payment experience free from the price volatility associated with other cryptocurrencies. Metro's chief operating officer described this initiative as a “transformative moment.”
Initially, stablecoin payments will be available at two locations: Metro Paragon and Metro Woodlands. Notably, the rise of crypto payments in Singapore is evidenced by nearly $1 billion in transactions reported in Q2 2024. While Dtcpay focuses exclusively on stablecoins, Metro has not yet deployed this payment option on its website, which currently only supports credit card payments. The partnership reflects growing demand for innovative payment solutions in the region.
PayPal Expands PYUSD Stablecoin to 20 Million Businesses Amid Market Challenges
PayPal is expanding the use of its stablecoin, PYUSD, targeting integration with 20 million small-to-medium-sized businesses in 2025. Despite recent market challenges, the company aims to enhance its position against competitors like Tether and Circle. Initially launched on Ethereum in August 2023, PYUSD was later introduced on Solana in May 2024 and on Cardano in January 2025, helping reduce transaction costs. PYUSD, fully backed by US dollar reserves, experienced a drop in market cap from over $1 billion to approximately $704 million amid broader market downturns.
PayPal’s expansion strategy emphasizes facilitating international transactions without currency conversion hassles. To support growth, PYUSD will be integrated into Hyperwallet for global payouts and enable cryptocurrency settlements by the end of 2025. CEO Alex Chriss highlighted the importance of making digital currencies usable for everyday transactions as a significant step toward realizing blockchain potential.
Avalanche Foundation and Rain Launch Avalanche Card for Crypto Payments via Visa
On February 26, 2025, the Avalanche Foundation and Rain announced the launch of the Avalanche Card, a dual physical and digital credit card that enables users to make purchases using their cryptocurrencies wherever Visa is accepted. Currently, the card supports major cryptocurrencies including USD Coin (USDC), Tether (USDT), Wrapped AVAX (wAVAX), and AVAX, promoting seamless transactions without the need for crypto-to-fiat conversion. Initially unveiled in October 2024, the card emphasizes accelerated sign-ups across Southeast Asia, Africa, and Latin America, though individuals from specific sanctioned countries are excluded.
Integrated with Visa’s network, the Avalanche Card facilitates online and in-store purchases while avoiding conversion fees, making it an attractive option for users in regions with unstable banking systems. Additional features include spend alerts, freezing capabilities, and PIN code changes, aligning with Avalanche’s goal of fostering global adoption of decentralized finance (DeFi) solutions.
Deutsche Telekom Becomes Validator for Injective, Expanding Crypto Presence
Deutsche Telekom has joined Injective as a validator, enhancing its presence in the cryptocurrency space. This move aligns with the telecom giant's strategy to participate in various blockchain networks; it is already a validator for Polygon, Polkadot, Chainlink, Celo, Flood, and NEAR. Injective, incubated by Binance, is a high-speed, interoperable Layer 1 blockchain focused on decentralized finance (DeFi), offering over 10% APY for validators through staking rewards and transaction fees. The protocol, known for its unique order book model, allows trading across multiple chains including Ethereum and Polkadot.
Deutsche Telekom, headquartered in Bonn, Germany, serves over 250 million customers globally and is also involved in securing Ethereum and Bitcoin networks as a node operator. Additionally, it launched a Bitcoin mining initiative using renewable energy, marking its commitment to integrating blockchain technology into mainstream operations and supporting institutional adoption in Web3.
BlackRock Adds Bitcoin ETF to Model Portfolios, Signaling Institutional Adoption
BlackRock has officially included the iShares Bitcoin Trust (IBIT) ETF in its model portfolios, allocating 1% to 2% to Bitcoin, marking a significant shift towards institutional cryptocurrency adoption. This inclusion aims to attract financial advisors who often adhere to predefined strategies, potentially generating renewed demand for IBIT, which had remarkable initial success with over $37 billion in inflows since its January 2024 launch. Recent market volatility resulted in capital outflows of $900 million in the past week, highlighting the need for stability.
BlackRock perceives Bitcoin as a diversification tool, recognizing its unique benefits despite volatility. Currently trading around $83,000, Bitcoin’s fluctuating value remains a strategic asset for long-term growth. Alongside the Bitcoin allocation, BlackRock has reduced its overweight in equities from 4% to 3% and decreased exposure to long-duration bonds, reaffirming its focus on stocks, particularly in the technology sector, for future economic growth.
This article has been refined and enhanced by ChatGPT.
