Innovation remained strong as the crypto sector advanced further into traditional finance.
The headlines:
- BlackRock unveiled tokenization plans;
- The FSB warned against regulatory arbitrage;
- Coinbase introduced a business-focused stablecoin offering;
- Tether settled with Celsius Networks for $300 million;
- The banking charter rush continued;
- Plus, CME announced plans to launch a prediction markets solution (more on that later);
- And much more!
As always, these are your Decentralized Diaries!
Bitcoin is at $110k
The crypto markets remained volatile, with Bitcoin ranging from a high of $115,934.00 to a low of $103,875.01, and closing at $110,789.13.
Altcoins also traded within a narrow range.
Ethereum (ETH) is at $4,034.10, Solana (SOL) is at $191.63, Chainlink (LINK) is at $18.90, Avalanche (AVAX) is at $20.68, and Polkadot (DOT) is at $3.08.
BlackRock Mulls ETF Tokenization
During BlackRock’s October 14 Q3 results call, Chairman Larry Fink highlighted tokenization opportunities and announced plans to tokenize the firm’s products, including iShares.
Furthermore, Fink unveiled his vision of a wallet-free future with access to on-the-go services.
There’s a New Bill to Codify Trump’s Retirement Crypto Funds Executive Order
On October 14, Rep. Troy Downing (R-Montana) introduced the Retirement Investment Choice Act. The legislation aims to enable President Trump’s Executive Order (EO) 14330, which allows access to alternative investments in retirement accounts.
Furthermore, the Senate has not yet introduced a corresponding bill.
FSB Has Regulatory Arbitrage Concerns
The FSB issued a warning about the risks posed by crypto-focused regulatory arbitrage in a report published on October 16. The body emphasized that inconsistent global oversight could lead to cascading failures across financial systems.
According to the FSB, crypto firms often exploit gaps between jurisdictions to avoid compliance. The board highlighted that without coordinated international regulation, crypto-related disruptions could spill over into traditional finance.
Tether Unveils an Open Source Web Development Kit
Stablecoin issuer Tether launched an open-source Wallet Development Kit (WDK) to support global self-custody of digital assets. The toolkit enables developers to build wallets for Bitcoin’s Lightning Network and stablecoins, including the USD₮ and XAU₮ tokens, with compatibility for both human and AI-driven systems.
Developers can access the toolkit on GitHub.
Ondo Finance Urges SEC to Pause Nasdaq Tokenization Plans
Niche Fintech Ondo Finance urged the SEC to delay approval of Nasdaq’s equity tokenization rule change in a public letter published October 15. Ondo also requested that the Depository Trust Company disclose information about clearing and settlement activities for tokenized securities.
Concerns focus on the potential for tokenization to obscure ownership structures, complicate compliance, and introduce new risks to market integrity.
Coinbase Announces a Stablecoin Offering for Businesses
Premier crypto exchange Coinbase launched Coinbase Business, a new financial platform tailored for SMBs to manage crypto payments and assets. The service enables businesses to accept cryptocurrency with instant settlement, earn up to 4.1% APY on USDC stablecoin balances, and integrate with accounting tools, including QuickBooks and Xero.
Coinbase Business also provides multi-user access, self-service onboarding with approval in as little as two days, and integration with leading crypto tax software, including CoinTracker and Crypto Tax Calculator.
Stripe’s Tempo Blockchain Completes Series A $500m Funding Round
Stripe’s blockchain project, Tempo, raised $500 million in a Series A funding round led by Thrive Capital and Greenoaks, resulting in a $5 billion valuation for the payments-focused network.
Furthermore, the funding round also included participation from Sequoia Capital, Ribbit Capital, and SV Angel, while Stripe and Paradigm did not contribute additional capital. Tempo is a Layer-1 blockchain that supports stablecoin transactions and real-world financial applications.
Tether Reaches $300 million Settlement with Celsius Networks
Stablecoin issuer Tether agreed to a $299.5 million settlement with the Celsius Network bankruptcy estate, resolving claims related to the crypto lender’s 2022 collapse. The dispute centered on allegations that Tether improperly liquidated Bitcoin collateral securing Celsius loans denominated in USD₮, which Celsius argued contributed to its insolvency.
Celsius had sought roughly $4 billion in claims.
Citi Hints at 20206 Crypto Custody Launch Plans
A CNBC report on October 13 revealed that Citi intends to launch crypto custody services by 2026. Biswarup Chatterjee, Citi’s global head of partnerships and innovation, stated that the firm has been developing a crypto custody platform.
Furthermore, Chatterjee iterated that the bank plans to introduce the offering to clients soon.
OCC Grants National Charter to Erebor
The OCC conditionally approved Erebor Bank’s application for a national bank charter. Erebor Bank is a joint venture focused on serving technology companies and ultra-high-net-worth individuals involved in digital assets and virtual currencies.
Moreover, the FI plans to offer lending and deposit products tailored to the digital asset sector. The bank must meet several requirements before receiving final approval. They include maintaining a minimum 12% Tier 1 leverage ratio for its first three years, engaging an independent external auditor, and passing a pre-opening examination.
Sony Files with the OCC for a National Trust Charter
Similarly, Sony applied for a crypto-focused national banking trust charter with the OCC. The proposed Connectia Trust aims to offer stablecoin and crypto custody trust services.
Moreover, the new corporate vehicle will offer services to Sony’s in-house business units.
CME Partners with FanDuel to Launch Prediction Markets Offering
Derivatives specialist CME Group is entering the prediction markets space by launching event-based financial contracts through a partnership with FanDuel. The move brings traditional financial infrastructure into entertainment-driven betting markets, positioning CME to compete with platforms including Kalshi and Polymarket.
In addition, the partnership allows CME to distribute its new contracts via FanDuel’s platform, blending traditional finance with consumer-facing prediction tools.
MoonPay Unveils a Payments Platform
Niche Fintech MoonPay launched MoonPay Commerce, a unified crypto payments platform for merchants, creators, and developers. Built on Helio technology, the platform streamlines crypto checkouts, subscriptions, and deposits with real-time analytics and customizable tools.
MoonPay Commerce supports major cryptocurrencies, including USDC, USDT, ETH, SOL, and BTC, and integrates with wallets and exchanges. It offers flexible settlement options in crypto or fiat.
Digital Asset ETF Action Remained Minimal
Ongoing budget issues in Congress slowed the digital asset ETF segment. On October 16, 21Shares filed with the SEC for approval of the 21Shares 2x Long HYPE ETF.
The offering aims to double the returns of the Hyperliquid token.
VanEck also filed an S-1 registration form with the SEC for a Lido Staked Ethereum ETF.
