Key facts
- BlackRock introduced tokenized money market products for stablecoin issuers on Ethereum and other blockchains.
- Tether generated $1.5 billion in profit in Q2, primarily from interest on US Treasury holdings.
- Tokenized gold saw record trading volumes but limited use as collateral in DeFi.
- American Bitcoin, a Trump-linked miner, reported record quarterly production of 932 BTC.
- American Bitcoin completed a reverse stock split to comply with Nasdaq listing requirements.
The business of cryptocurrency is increasingly mirroring traditional banking, with stablecoin reserves, tokenized funds, and Treasury income becoming significant profit drivers. BlackRock has launched two tokenized money market products on Ethereum and other blockchains, aimed at stablecoin issuers seeking to meet reserve requirements under the US GENIUS Act. These products allow for onchain ownership transfer while assets remain invested in cash and short-term US government securities. Tether reported a substantial $1.5 billion net operating profit for the second quarter, largely due to interest earned on its extensive holdings of US Treasury securities and repurchase agreements. Despite a contraction in the broader stablecoin market, Tether's USDT maintained its dominant market share, exceeding 60%. The company's earnings are benefiting from elevated short-term interest rates. While tokenized gold experienced record trading volumes, its integration into decentralized finance (DeFi) as collateral remains limited, accounting for only about 1.5% of its combined market capitalization. Reports indicate that DeFi lending protocols like Aave and Morpho processed significant liquidations of tokenized gold during a sharp market sell-off in March, though the platforms handled the volume without disruption. In the Bitcoin mining sector, American Bitcoin, co-founded by Eric Trump and Donald Trump Jr., posted record quarterly production of 932 BTC, leading to a revenue increase of 8% to $67 million. The company narrowed its net loss to $57.2 million from $81.8 million in the prior quarter. However, American Bitcoin remains unprofitable and recently underwent a 1-for-15 reverse stock split to comply with Nasdaq's minimum bid price requirement. The miner holds a substantial amount of Bitcoin, with a portion pledged as collateral for equipment financing, exposing it to price volatility risks.