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Today in crypto, CoinFund managing partner David Pakman said a $1 trillion stablecoin supply combined with yield-bearing crypto exchange-traded funds (ETFs) may provide the next crypto market catalyst for 2025, Elon Musk sold social media platform X to his AI startup, and two US federal agencies eased restrictions on companies engaging in crypto-related activities, including derivatives.<\/p>\n
The global stablecoin supply could surge to $1 trillion by the end of 2025, potentially becoming a key catalyst for broader cryptocurrency market growth<\/a>, according to David Pakman, managing partner at crypto-native investment firm CoinFund.<\/p>\n \u201cWe\u2019re in a stablecoin adoption upswell that\u2019s likely to increase dramatically this year,\u201d Pakman said during Cointelegraph\u2019s Chainreaction<\/a> live show on X on March 27. \u201cWe could go from $225 billion stablecoins to $1 trillion just this calendar year.\u201d<\/p>\n He noted that such growth, while modest compared to global financial markets, would represent a \u201cmeaningfully significant\u201d shift for blockchain-based finance.<\/p>\n Pakman also suggested that the rise in capital flowing onchain, combined with growing interest in exchange-traded funds (ETFs), could further support decentralized finance (DeFi) activity:<\/p>\n \u201cIf we have a moment this year where ETFs are permitted to provide staking rewards or yield to holders, that unlocks really meaningful uplift in DeFi activity, broadly defined.\u201d<\/p><\/blockquote>\n Related: <\/strong><\/em>BlackRock Bitcoin ETP \u2018key\u2019 for EU adoption despite low inflow expectations<\/strong><\/em><\/a><\/p>\n The aggregate stablecoin supply stood at an all-time high of above $208 billion across the five largest stablecoins on March 28, according<\/a> to Glassnode data.<\/p>\n Stablecoins, aggregate supplies. Source: <\/em>Glassnode<\/em><\/a>\u00a0<\/p>\n<\/figcaption><\/figure>\n \u201cThis is the major catalyst that\u2019s been missing for over a decade: a major movement of people\u2019s wealth onchain that brings everyone else on,\u201d added Pakman.<\/p>\n The growing stablecoin supply recently surpassed $219 billion<\/a> and continues to rise, suggesting that the market is \u201clikely still mid-cycle\u201d as opposed to the top of the bull run, according to IntoTheBlock analysts.<\/p>\n Billionaire investor Elon Musk has sold his social media platform X to his AI startup xAI, sparking controversy as it coincides with a US judge rejecting his bid to dismiss a lawsuit tied to the social media platform.<\/p>\n The transfer of ownership of X to xAI on March 28 means that the class-action lawsuit against Musk \u2014 accusing him of\u00a0defrauding former Twitter shareholders<\/a>\u00a0by delaying the disclosure of his initial investment in the social media platform \u2014 has become \u201ca whole lot spicer,\u201d Cinneamhain Ventures partner Adam Cochran\u00a0said<\/a>\u00a0in a March 28 X post.<\/p>\n Source:\u00a0<\/em>Grok<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n On the same day that Musk\u00a0said<\/a>\u00a0\u201cxAI has acquired X in an all-stock transaction,\u201d a US judge\u00a0reportedly<\/a>\u00a0rejected Musk\u2019s attempt to dismiss the lawsuit. Cochran said it has \u201copened up his AI entity to exposure here too, and it\u2019s a much bigger pie.\u201d<\/p>\n Musk said the deal values xAI at $80 billion and X at $33 billion, factoring in $12 billion in debt from the $45 billion valuation. He originally bought X, formerly Twitter, for around\u00a0$44 billion in April 2022<\/a>.<\/p>\n The Federal Deposit Insurance Corporation (FDIC) said<\/a> in a March 28 letter that institutions under its oversight, including banks, can now engage in crypto-related activities without prior approval<\/a>. The announcement comes as the Commodity Futures Trading Commission (CFTC) announced<\/a> that digital asset derivatives wouldn\u2019t be treated differently than any other derivatives.<\/p>\nElon Musk\u2019s sale of X to xAI just made fraud lawsuit \u201ca lot spicer\u201d<\/h2>\n
US regulators FDIC and CFTC ease crypto restrictions for banks, derivatives<\/h2>\n