Companies Announce Digital Asset Payment Networks
By Robert A. Musiala Jr.
The issuer of the USDC stablecoin recently published a white paper outlining its plans to launch “CPN,” a new payments network that aims to “bring[] financial institutions together in a compliant, seamless, and programmable framework to orchestrate global payments in fiat, USDC, and other payment stablecoins.” The white paper “sets forth the design principles of CPN, outlines initial and near-term use cases, and suggests future use cases and growth opportunities.” Among other things, CPN seeks to serve as “the foundation for an ecosystem that eliminates many of the technical complexities and operational hurdles that have slowed mainstream stablecoin adoption to date, including the need for businesses to custody their own stablecoins.”
In other stablecoin news, the issuer of the PYUSD stablecoin recently “introduced rewards for PYUSD, a new loyalty offering that will provide US users the ability to earn 3.7% annually in rewards” on PYUSD held in wallets on certain fintech applications. According to a press release, the new rewards will be available beginning in summer 2025.
Another recent press release announced the launch of Lynq, “a real-time, yield-bearing settlement network powered by a tokenized treasury fund custodied at a special purpose broker-dealer.” According to the press release, “Lynq aims to address the unique challenges of digital asset settlement, including market fragmentation, counterparty risk, and evolving regulatory frameworks, while returning yield to institutional clients.” The press release lists several well-known companies in the digital asset and traditional financial services space that are participating as launch partners of the Lynq network.
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Exchanges Announce Futures Products, New Co. Focuses on BTC Treasury
By Robert A. Musiala Jr.
A major U.S. cryptocurrency exchange recently announced the launch of five “FX perpetual futures” products: EUR/USD, GBP/USD, AUD/USD, JPY/USD and CHF/USD. According to a company blog post, the new products “are perpetual contracts based on forex market indices, benchmarked to DxFeed’s Composite Forex Index.” The blog post further notes that the products “trade without expiry, enabling traders to stay engaged in the forex market, refine strategies and capture opportunities in real time.”
In related news, Bitnomial, a designated contract market regulated by the Commodity Futures Trading Commission, recently announced “the self-certification of the first perpetual futures contracts ever listed on a U.S. exchange.” According to a press release, “Trading begins Monday, April 28, 2025, with the launch of BTC/USD perpetual futures, available initially to institutional participants.” The press release further notes that “[a]dditional contracts for XRP/USD, ETH/USD, SOL/USD, and other tokens and physical commodities are planned to follow.”
A third press release announced the launch of Twenty One Capital Inc., a company that intends to focus on accumulating a Bitcoin treasury with a goal “to accumulate Bitcoin and grow ownership per share, not just track it.” According to a press release, the company will “introduce two key performance metrics, to reflect its Bitcoin-denominated capital structure and Bitcoin-focused mindset”: (1) Bitcoin Per Share (BPS), which represents the amount of Bitcoin each fully diluted share represents, reflecting shareholder ownership in Bitcoin rather than fiat earnings per share, and (2) Bitcoin Return Rate, which represents the rate at which BPS grows over time, denominating the company’s performance in Bitcoin.
In a final notable item, crypto exchange eToro recently announced that it is adding 29 new digital assets to its crypto trading and investment platform. eToro had previously been the subject of a consent order that had required it to limit its digital asset offerings to BTC, BCH and ETH.
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SEC Hosts Roundtable on Crypto Custody
By Robert A. Musiala Jr.
On April 25, the U.S. Securities and Exchange Commission (SEC) hosted the third in its series of roundtables discussing crypto asset regulation. The April 25 roundtable addressed key considerations for crypto custody. The prior two roundtables addressed defining the security status of crypto assets and tailoring regulation for crypto trading. The next two roundtables will take place on May 12 and June 6 and will address, respectively, “Moving Assets Onchain: Where TradFi and DeFi Meet” and “DeFi and the American Spirit.” More information on the SEC’s “Spring Sprint Toward Crypto Clarity” roundtables can be found here.
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SEC Enforcement Action Targets Alleged Crypto Fraud Scheme
By John E. Robertson
A recent press release from the SEC announced charges against Ramil Palafox for violating the anti-fraud and registration provisions of federal securities laws. Palafox, the release states, guaranteed investors high returns from his company’s supposed cryptocurrency trading while using their funds to pay personal expenses. Among other things, the SEC alleges Palafox misappropriated more than $57 million of investor funds.
In other SEC enforcement news, according to recent reports, the commission does not intend to refile its complaint against Hex founder Richard Heart. The SEC originally filed a complaint against Heart for his advertising of three unregistered tokens as “pathway[s] to grandiose wealth for investors.” This original complaint was dismissed when New York District Court Judge Carol Amon held that the SEC had no jurisdiction over Heart, who does not reside in the U.S.
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Crypto Malware Planted in Popular API, ASIC Shuts Down Pig Butchering Cos.
By Robert A. Musiala Jr.
According to recent reports, a popular JavaScript API used to interact with the XRP Ledger has been compromised as part of a “software supply chain attack” designed to steal the private keys of crypto users who download the API. The hackers reportedly published the compromised JavaScript API after gaining access to a developer’s “Node Package Manager token.”
In other news, a recent press release by the Australian Securities and Investments Commission (ASIC) announced that ASIC had obtained court orders to shut down 95 companies that were involved in “pig butchering” scams that seek to steal victims’ cryptocurrencies. According to the press release, “Many of the companies were … associated with websites and apps, which ASIC believes may have been involved in facilitating suspected scam activity by tricking consumers into making investments in phoney foreign exchange, digital assets or commodities trading.”
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