Crypto Biz: Crypto’s biggest business is starting to look a lot like banking
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
This week’s major crypto business developments highlight a growing convergence between digital assets and traditional finance. BlackRock launched tokenized money market funds aimed at stablecoin reserve management under the US GENIUS Act. Tether reported $1.5 billion in Q2 profit from its US Treasury holdings. Tokenized gold saw record trading but limited use in decentralized finance (DeFi). Meanwhile, American Bitcoin Mining, linked to the Trump family, posted record Bitcoin production with narrower losses in Q2.
Why it matters
The article emphasizes that financial infrastructure elements like stablecoin reserves, tokenized money market funds, and onchain collateral are becoming key revenue sources in crypto. BlackRock’s entry into tokenized Treasury funds signals increased Wall Street adoption of blockchain-based financial products following regulatory clarity from the GENIUS Act. Tether’s profits show the impact of elevated short-term interest rates on stablecoin reserves, while the rising tokenization of assets could shape blockchain’s next phase.
Key context
BlackRock’s new products include a tokenized Treasury liquidity fund on Ethereum and an institutional money market vehicle supporting multiple blockchains, both facilitating onchain stablecoin reserve management. Tokenized gold held value during a significant market sell-off but remains underutilized in DeFi lending platforms like Aave and Morpho, highlighting an infrastructure gap. American Bitcoin Mining produced 932 BTC in Q2 but remains unprofitable and faces stock listing challenges. Tether remains the dominant stablecoin with over 60% market share despite broader market contraction.
Key numbers and entities
BlackRock launched two tokenized money market funds for stablecoin issuers. Tether’s Q2 net operating profit was $1.5 billion, with a reserve buffer of $4.11 billion and circulating supply of $184.6 billion USDT. Tokenized gold trading volume hit $90.7 billion in Q1, but only about $63 million is used as DeFi collateral. American Bitcoin Mining produced 932 BTC in Q2, raised mining revenue to $67 million, but posted a $57.2 million net loss. The company holds approximately 8,002 BTC and pledged 3,090 BTC as collateral.
What remains unclear
The source does not flag open questions or uncertainties beyond noting limited adoption of tokenized gold in DeFi and the risks American Bitcoin Mining faces due to pledged Bitcoin collateral and stock price pressures.