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## The Event in Detail Mainland China, which enacted a comprehensive ban on cryptocurrency trading and mining in 2021, demonstrates emerging signs of a potential policy re-evaluation in 2025. This shift is notably influenced by Hong Kong's proactive establishment as a regulated Web3 hub and the United States' enactment of the GENIUS Act. Commentators, including Yifan He, CEO of Red Date Technology, suggest the probability of China reversing its ban has increased to over 50% from zero two years prior, attributing this to Hong Kong's strategic role in bridging China with the global crypto ecosystem. In July 2025, the **United States** formalized its approach to digital assets with the signing of the **GENIUS Act**. This legislation establishes a comprehensive regulatory framework for stablecoins, prioritizing consumer protection through requirements such as 100% reserve backing with liquid assets like U.S. dollars or short-term Treasuries. It mandates monthly public disclosures of reserve compositions and prohibits misleading claims of government backing or federal insurance. The GENIUS Act explicitly subjects stablecoin issuers to the Bank Secrecy Act, enforcing stringent anti-money laundering (AML) and sanctions compliance programs, thereby strengthening the U.S. dollar's dominance and attracting investment into the country's digital asset sector. Concurrently, **Hong Kong** advanced its position as a digital asset hub with the **Stablecoins Ordinance (Cap. 656)**, which became effective on August 1, 2025. This Ordinance establishes a comprehensive licensing regime for fiat-referenced stablecoins (FRS), building upon a stablecoin issuer "sandbox" launched in March 2024. The sandbox involved participants such as **JINGDONG Coinlink Technology Hong Kong Limited**, **RD InnoTech Limited**, and a consortium including **Standard Chartered Bank (Hong Kong) Limited**. This regulatory framework aims to foster innovation while ensuring compliance, positioning Hong Kong as a strategic observation ground for Beijing regarding digital asset integration. **China** continues to strategically advance its **digital yuan (e-CNY)**, leveraging it as a geopolitical tool to enhance monetary sovereignty and reduce reliance on the U.S. dollar. The establishment of the e-CNY International Operations Center in Shanghai in September 2025 underscores this objective, aiming to build cross-border blockchain infrastructure. Data from 2025 indicates Chinese cross-border transactions in yuan reached 54.3% of total volumes, or $725 billion, supported by initiatives like the Cross-Border Interbank Payment System (CIPS) and the mBridge project, which facilitates sub-10-second settlements with significant cost reductions. Governor Pan Gongsheng of the **People's Bank of China (PBOC)** has highlighted the e-CNY's potential to rival decentralized stablecoins, with cumulative transactions reaching $7.3 trillion and 180 million wallets by 2025. Adding to this evolving landscape, Beijing has formalized a process for liquidating seized cryptocurrencies by utilizing licensed exchanges in Hong Kong. This arrangement allows Chinese authorities to offload substantial digital assets, including approximately **194,000 Bitcoin** and **833,000 Ethereum**, confiscated from criminal cases, with proceeds converted to yuan and deposited into government accounts. This marks a significant development as authorities previously lacked formal mechanisms for converting seized crypto into traditional currency. ## Market Implications These converging developments generate significant market implications, fostering increased institutional clarity within regulated crypto markets in the United States and Hong Kong. The structured regulatory environments are expected to attract further institutional interest, potentially leading to a gradual re-evaluation of crypto policy within Mainland China itself. The global stablecoin market, exceeding $250 billion, is being reshaped by these contrasting yet influential regulatory frameworks. The **US GENIUS Act**, by mandating 1:1 reserve backing with U.S. Treasuries, is designed to drive demand for U.S. debt, thereby reinforcing the U.S. dollar's position as the global reserve currency. This approach primarily attracts large institutional players but may limit decentralized finance (DeFi) innovation and retail adoption due to stringent compliance requirements and a ban on yield-bearing stablecoins. However, the legislation creates a feedback loop where growing stablecoin adoption increases global demand for USD and Treasuries, cementing U.S. financial hegemony. In contrast, **Hong Kong's Stablecoins Ordinance** aims to balance compliance with innovation. While it features an accessible capital threshold of HKD 25 million, compliance costs and stringent licensing criteria, with the **Hong Kong Monetary Authority (HKMA)** planning a "single-digit" number of licenses in 2025, favor well-capitalized firms. The Ordinance offers flexibility to issue stablecoins pegged to various currencies, including HKD, USD, or offshore RMB, enhancing Hong Kong's competitiveness in the Asia-Pacific region. This aligns with China's **Belt and Road Initiative (BRI)**, facilitating cross-border transactions and offering regulated stablecoins for trade and remittances. ## Broader Context China's evolving stance reflects a sophisticated, dual-track strategy: aggressive promotion of the state-controlled e-CNY for domestic and geopolitical objectives while leveraging Hong Kong as a quasi-regulatory sandbox for broader crypto engagement. This strategic positioning occurs amid a global trend where various jurisdictions, including Singapore, Bahrain, South Korea, Japan, and the UAE, are developing their own sovereign stablecoin regimes, indicating a global race to define the future of digital currencies. The contrasting regulatory philosophies between the US and Hong Kong illustrate different approaches to governing digital assets. The US emphasizes bolstering its existing financial infrastructure and currency dominance, while Hong Kong aims for a more flexible, innovation-friendly environment to become a regional Web3 hub. This dynamic sets the stage for intensified competition between fiat and digital currencies, with significant geopolitical considerations as China's de-dollarization efforts continue to challenge the U.S. dollar's supremacy. Despite Mainland China's official ban, legal precedents exist where Chinese courts have recognized and protected Bitcoin ownership rights, suggesting a nuanced domestic environment beneath the surface of official policy. This global realignment of digital asset policies underscores the growing importance of regulatory clarity and strategic innovation in the international financial landscape.
## Executive Summary The cryptocurrency market is experiencing a confluence of significant technical upgrades, strategic funding rounds, and evolving regulatory frameworks. **Ethereum's Fusaka upgrade** successfully completed its Holesky testnet run, signaling a move towards reduced costs for institutions and Layer-2 networks. Simultaneously, **DoubleZero's mainnet-beta** went live, integrating a private fiber network to accelerate Solana transactions, now connected to 22% of staked SOL. In the decentralized physical infrastructure (DePIN) sector, **Bee Maps** secured $32 million in funding, underscoring investor confidence. Regulatory bodies are also adapting, with the **Bank of England** planning exemptions for stablecoin holding limits and the **SEC** working to formalize an "innovation exemption" for digital asset companies. Despite these advancements, a **GoMining survey** revealed that 77% of Bitcoin holders have not engaged with BTCFi, indicating a significant user adoption challenge. ## The Event in Detail **Ethereum's Fusaka Upgrade Advances Towards Mainnet** The **Ethereum Fusaka upgrade**, slated for activation on December 3, 2025, successfully passed its Holesky testnet. This upgrade aims to reduce validator costs by 90% and enhance Layer-2 (L2) efficiency by 20-40%. Key features include **PeerDAS (EIP-7594)** for data availability sampling, which reduces bandwidth and storage requirements for validators by up to 90%, and blob scalability, increasing blob capacity to 14/21 per block by December 2026. This is projected to enable **Ethereum** to process over 100,000 transactions per second (TPS) in a modular architecture. Post-upgrade, staking Annual Percentage Yields (APYs) are anticipated to rise from 4-5% to 6-8%, with **EIP-7251** increasing the maximum effective balance per validator to 2,048 ETH, signaling a strategic pivot towards institutional adoption. **Solana Ecosystem Sees Infrastructure Boost and DePIN Funding** **DoubleZero's mainnet-beta**, launched in October 2025, has already captured 22% of staked SOL. This network layer 1 (N1) utilizes high-speed private fiber routes across 25 cities to provide low-latency communication for blockchain validators, contributing to **Solana's** evolution into a high-performance infrastructure. The project has seen a 57% increase in validator count to 3,248 by July 2025. **Solana's Total Value Locked (TVL)** reached $10 billion by Q3 2025, processing 65,000 TPS with staking yields up to 7.5% APY. In related developments on Solana, **Bee Maps**, previously Hivemapper, secured $32 million in a funding round led by **Pantera Capital**, **LDA Capital**, **Borderless Capital**, and **Ajna Capital**. This investment supports its decentralized mapping platform, which rewards contributors with the native **HONEY** token for capturing real-world imagery. A new **Bee Membership Plan** offers a $19 monthly subscription that includes a Bee Dashcam, LTE connectivity, and software access, replacing the former $589 upfront device cost to lower the barrier to entry for contributors and scale data collection. **Bee Maps** has partnered with entities such as **Volkswagen**, **Lyft**, and **Mapbox**. **Evolving Regulatory Landscape for Digital Assets** The **Bank of England (BoE)** is adjusting its regulatory stance on stablecoin holdings, planning to introduce exemptions for certain businesses, particularly crypto exchanges, from proposed limits of £20,000 for individuals and £10 million for businesses. This shift, reported by Bloomberg, allows for larger stablecoin holdings necessary for trading and operations. The BoE will also permit stablecoins as settlement assets in its **Digital Securities Sandbox**. Similarly, the **Securities and Exchange Commission (SEC)** is working to formalize an "innovation exemption" for digital asset companies, aiming to reduce regulatory uncertainty and foster growth in the sector. These developments reflect a global trend towards accommodating digital assets while maintaining financial stability. **Challenges in BTCFi Adoption Highlighted by GoMining Survey** A survey by **GoMining**, involving over 700 participants across North America and Europe, revealed that 77% of Bitcoin holders have never engaged with **BTCFi** platforms. Despite this, 73% expressed interest in earning yield through lending or staking, and 42% sought liquidity without selling their Bitcoin. **Mark Zalan**, CEO of GoMining, stated that the industry has predominantly developed products for "crypto natives" rather than "everyday Bitcoin holders." Key barriers to adoption include trust, complexity, and a lack of awareness, with 65% of respondents unable to identify a single BTCFi project. Projects like **Core** are addressing this by enabling non-custodial Bitcoin staking, dual staking, and providing regulated access via ETPs such as Valour's yield-bearing Bitcoin ETP. ## Market Implications The ongoing technical upgrades in **Ethereum** and **Solana** are positioned to significantly enhance the scalability and efficiency of core blockchain infrastructure. **Fusaka**'s improvements in validator costs and L2 efficiency could drive increased institutional participation on Ethereum, expanding its utility for tokenized assets and cross-chain finance. **DoubleZero's** impact on Solana's network speed and validator diversity further solidifies its role as a high-performance blockchain, fostering DeFi innovation and transaction volume. The substantial funding for **DePIN** projects like **Bee Maps** indicates a growing market demand for decentralized real-world utility, potentially onboarding new users to Web3 through practical applications. Regulatory clarifications from the **Bank of England** and the **SEC** are expected to reduce uncertainty for businesses operating with stablecoins and digital assets, potentially fostering greater corporate adoption. The expansion of tokenized funds, exemplified by **KAIO** bringing **BlackRock** and **Brevan Howard** funds to the **Sei Network**, demonstrates a growing bridge between traditional finance and the crypto ecosystem, attracting institutional capital into real-world asset (RWA) tokenization. However, the low adoption of **BTCFi**, despite high interest in yield generation, indicates persistent challenges in user experience and product accessibility. This highlights a need for more user-friendly products and educational initiatives to broaden mainstream engagement with decentralized finance built on Bitcoin. The market sentiment remains cautiously optimistic to bullish, driven by foundational technological advancements and efforts towards regulatory clarity, while simultaneously recognizing the ongoing hurdles in widespread user adoption for specific DeFi sectors. ## Expert Commentary **Mark Zalan**, CEO of **GoMining**, observed that the **BTCFi** industry has developed products for "crypto natives" rather than "everyday Bitcoin holders," indicating a disconnect between offerings and broader user needs. **Chanel Chuang**, a contributor to **Core**, predicted that "BTCFi in 2025 will focus on utility-driven innovations like tokenized yield products that bring liquidity to staked Bitcoin assets." This perspective was echoed by **Rich Rines**, another **Core** contributor, who suggested that the shift toward Bitcoin-native solutions could lead to "a significant portion of all active Bitcoin addresses becoming active on Bitcoin scaling solutions," potentially surpassing Bitcoin in DeFi on Ethereum-based chains. Regarding institutional adoption of blockchain technology, **Olivier Dang**, COO of **KAIO**, stated that the expansion of tokenized fund offerings to the **Sei Network** marks "another major milestone in institutional blockchain adoption," highlighting the increasing integration of traditional finance with decentralized platforms. **Justin Barlow**, Executive Director at the **Sei Development Foundation**, supported this view, commenting that the integration is an "important step toward the goal for Sei to become the institutional settlement layer for all digital assets." On the infrastructure front, **Austin Federa** described **DoubleZero** as “the missing hardware layer,” capable of pushing decentralized systems towards Nasdaq-level throughput. ## Broader Context The strategic moves within the crypto market reflect a broader push towards enterprise-grade infrastructure and bridging traditional finance with decentralized ecosystems. **Ethereum's Fusaka upgrade** and **Solana's DoubleZero mainnet** exemplify a focus on enhancing core blockchain capabilities, reminiscent of traditional financial infrastructure upgrades aimed at speed and cost efficiency. The financial mechanics of **Fusaka**, including the reduction in validator costs and increased staking APY, are designed to attract institutional capital by offering more predictable returns and lower operational overheads, positioning **Ethereum** as a backbone for tokenized assets. **Bee Maps'** funding round and its innovative subscription model address a critical supply-side constraint in the rapidly expanding Decentralized Physical Infrastructure Networks (DePIN) sector. This business strategy of lowering entry barriers for contributors is key to scaling data collection for real-world applications and stands in contrast to previous models that relied on high upfront hardware costs. This parallels the evolution of many tech industries where subscription models democratize access and accelerate adoption. The regulatory adjustments from the **Bank of England** and the **SEC** indicate a pragmatic shift towards accommodating digital assets within existing financial frameworks, aiming for clarity that can attract greater institutional participation. The tokenization of institutional funds by **KAIO** on **Sei**, including those from **BlackRock** and **Brevan Howard**, represents a significant advancement in the Real-World Asset (RWA) tokenization trend. This directly parallels the growth of securitization in traditional finance, but with the added benefits of blockchain's programmability and transparency, enabling new forms of liquidity and access for accredited investors. This move positions networks like Sei as critical infrastructure for the future of financial markets, blending the security and compliance of traditional finance with the efficiency of decentralized ledgers. This trend aims to overcome some of the "trust and complexity" barriers identified in the **GoMining survey** regarding **BTCFi**, by offering institutional-grade products that are both regulated and accessible on-chain, thereby expanding the overall digital asset market. Efforts by projects like **Core** to simplify **BTCFi** access are also crucial in this evolving landscape, demonstrating a dual approach of institutional integration and user-centric product development.
## Executive Summary CoinShares International launched its CoinShares Altcoins ETF (DIME) in the US, providing equal-weighted investment exposure to ten altcoins including Solana and Cardano, broadening access to the digital asset market for traditional investors. ## The Event in Detail The **CoinShares Altcoins ETF (DIME)** has been introduced as an innovative US exchange-traded fund. This ETF is designed to provide investors with exposure to a diversified basket of altcoins through their existing brokerage accounts, addressing a market gap where previously only spot **Bitcoin (BTC)** and **Ethereum (ETH)** ETFs were available. CoinShares International, a digital asset manager with over $9 billion in assets under management (AUM), aims to make approximately 70% of the broader crypto market accessible to traditional investors. DIME employs an **equal-weighted investment strategy** across multiple Exchange Traded Products (ETPs) that hold different digital assets. This approach seeks to mitigate the risk associated with over-reliance on any single cryptocurrency. The initial investments for DIME are focused on ETPs holding **Solana (SOL)**, **Polkadot (DOT)**, **Cardano (ADA)**, **Cosmos (ATOM)**, **Sei (SEI)**, **Avalanche (AVAX)**, **Sui (SUI)**, **Aptos (APT)**, **Near Protocol (NEAR)**, and **Toncoin (TON)**. These assets span three investment themes: high-speed blockchains, interoperability protocols, and growing platforms, primarily categorised as emerging Layer 1 alternatives. CoinShares has committed to waiving the 0.95% gross expense for the Fund on assets under management up to $1 billion through September 30, 2026, subject to potential amendments or termination by the Trust's Board of Trustees. The regulatory landscape in the United States has evolved to facilitate such products. The U.S. Securities and Exchange Commission (SEC) recently approved new listing standards for crypto ETFs and cleared **Grayscale's Digital Large Cap Fund (GDLC)**. These approvals introduced generic listing standards for spot crypto ETFs, enabling exchanges like Nasdaq, NYSE, and CBOE to approve products that meet predefined requirements without requiring lengthy 19(b) rule-change processes. The **GDLC**, which includes exposure to Bitcoin, Ethereum, XRP, Solana, and Cardano, marked the first multi-crypto exchange-traded product in the U.S. to receive such approval, paving the way for broader altcoin ETF introductions. ## Market Implications CoinShares' launch of DIME represents a strategic move to address a significant unmet demand within the US investment market. By offering access to a diversified basket of altcoins, DIME directly competes in a segment previously underserved by traditional financial instruments. This strategy contrasts with market capitalization-weighted funds, which can concentrate exposure in larger, established cryptocurrencies. An equal-weighted approach, as utilized by DIME, tends to reduce overall portfolio volatility due to greater diversification. Historically, equal-weighted funds have demonstrated a tendency to rebalance by taking profits from disproportionately rising assets and reinvesting into those with lesser performance, aligning with a "buy low, sell high" dynamic. This differs from market-capitalization weighting, which can inadvertently lead to "buy high, sell low" scenarios in the cryptocurrency market due to the observed mean-reversion tendencies of many digital assets. The introduction of DIME is expected to enhance the legitimacy and potentially influence the market values of the included altcoins by facilitating increased institutional capital flow. This development signifies a broader acceptance of cryptocurrencies beyond Bitcoin and Ethereum within regulated investment products, setting a precedent for future altcoin investment vehicles and expanding the addressable market for these digital assets. ## Expert Commentary Industry analysts have indicated that the streamlined regulatory process, exemplified by the SEC's approval of new listing standards and Grayscale's multi-crypto ETP, is likely to precipitate a surge in crypto ETF launches, particularly those focused on altcoins. Peter Mintzberg, CEO of Grayscale, described the approval of their multi-crypto ETP as a significant milestone, highlighting the industry's collaborative efforts to bring diversified digital asset products to market. ## Broader Context The launch of DIME by CoinShares contributes to a broader trend of integrating digital assets into traditional financial frameworks. This move reflects an ongoing shift in regulatory attitudes and investor demand, moving beyond foundational cryptocurrencies like Bitcoin and Ethereum to encompass a wider array of digital assets. The availability of such products in familiar ETF wrappers reduces the complexity of direct crypto asset investment, thereby lowering barriers to entry for both retail and institutional investors. This expansion is poised to further mature the Web3 ecosystem by providing more liquid and regulated avenues for capital allocation into nascent blockchain technologies and decentralized applications.
## Executive Summary **Sei**, a Layer-1 blockchain, is strategically expanding its presence across the Asia-Pacific (APAC) region by focusing on regulatory compliance and cultivating institutional partnerships. This approach includes securing early regulatory approvals in Japan and facilitating real-world asset (RWA) tokenization through collaborations with established financial entities. The strategy aims to position Sei as a leading platform for financial applications, drawing both institutional investment and a broader developer base, while an **ETF** filing signals increasing mainstream interest in the **SEI** token. ## The Event in Detail **Sei** has anchored its expansion into Asia by prioritizing stringent regulatory compliance, particularly within Japan's demanding licensing regime. This proactive engagement led to the necessary approvals for listings on **Binance Japan** and **OKX Japan**, marking **Sei** as one of the few Layer-1 blockchains to achieve such early market entry. Lee Zhu, **Sei**'s Director of Growth for APAC, noted that clearer regulations provide a defined path for resource allocation and market penetration. Central to **Sei**'s institutional strategy is the deployment of **Circle**'s native **USDC** stablecoin and the advancement of real-world asset (RWA) tokenization. Through a partnership with **Apollo** and **Securitize**, **Sei** has facilitated the tokenization of the **Apollo Diversified Credit Fund (ACRED)**. This fund, which targets accredited investors and is managed by **Apollo**, currently holds over $112 million on-chain. **Securitize**'s expansion to **Sei** makes it the seventh network to host a tokenized version of **ACRED**, joining platforms like **Solana** and **Ethereum**. These integrations are designed to reduce friction for exchanges and create a gateway for structured products and derivatives within the digital asset ecosystem. Additionally, asset management firm **21Shares** has filed with the **SEC** to launch an **SEI ETF**, potentially offering staking yield for **US** investors and signifying growing institutional interest. Technologically, **Sei** distinguishes itself by combining high throughput benchmarks with **EVM** compatibility. The July 2024 V2 upgrade introduced a parallelized **EVM**, enabling seamless interoperability with **Ethereum**-based applications. This allows developers to deploy **EVM**-compatible protocols on **Sei** with minimal code adjustments, leveraging its claimed 200,000 transactions per second (TPS) throughput and sub-400ms finality. Data indicates **Sei**'s **EVM** ecosystem has integrated 150 projects, serving 6.5 million users, with gaming and decentralized finance (**DeFi**) applications leading adoption. Market performance metrics show **Sei** ranking among the top three in trading volume within Korea. In specific segments such as GameFi and SocialFi, **Sei** has, at times, surpassed **Solana** in daily active users, despite a comparatively lower market capitalization and total value locked (**TVL**). ## Market Implications **Sei**'s strategic focus on regulatory compliance and institutional RWA tokenization carries significant implications for both its own ecosystem and the broader Web3 landscape. In the short term, this strategic push is expected to increase investor interest and trading activity for the **SEI** token, particularly within the APAC region. The **21Shares ETF** filing, if approved, could provide a new avenue for mainstream investment, potentially legitimizing **SEI** as an institutional-grade asset, especially following the **SEC**'s August 2025 clarification on liquid staking activities. Longer term, successful institutional adoption and the widespread tokenization of real-world assets on **Sei** could solidify its position as a leading Layer-1 blockchain for financial applications. This strategy creates increased competition for established networks like **Solana** in specialized financial niches. The expansion of RWA tokenization platforms like **Securitize** onto **Sei** contributes to the overall growth of tokenized assets, with the total RWA on-chain value nearing $31 billion, reflecting an 8.68% increase over 30 days. The **ACRED** fund's current value of $126.9 million demonstrates a 13.27% increase. Furthermore, **Sei**'s **EVM** compatibility is a strategic move to attract developers from **Ethereum**'s vast ecosystem. This reduction in switching costs, coupled with high throughput, is poised to compound the network's **TVL** and transaction volumes, creating a flywheel effect benefiting users and token holders by bridging to an established developer base. ## Expert Commentary Lee Zhu highlighted the importance of a clear regulatory environment: "Clearer regulations in these markets help the team determine the best path forward and allocate resources effectively." He further emphasized that high throughput is a prerequisite for institutional engagement, stating, "without capacity, you're not even in the door." Zhu also mentioned the team's "prudent, impact-focused" mindset, developed during a bear market, as a factor in weathering market downturns. Justin Barlow, Executive Director at the **Sei** Development Foundation, remarked that the integration of **Securitize** follows "explosive growth in both stablecoin adoption and RWA tokenization." He underscored the market potential of private credit, projecting it to reach $2.8 trillion by 2028, indicating a significant growth opportunity for tokenized assets on **Sei**. ## Broader Context **Sei**'s strategy aligns with a broader industry trend toward institutional engagement and regulatory clarity within the digital asset space. The emphasis on Japan's stringent licensing regime reflects a growing recognition among blockchain projects that compliance is essential for attracting large-scale financial institutions. This approach contrasts with earlier phases of crypto development, which often prioritized decentralization over traditional regulatory frameworks. The **SEC**'s evolving stance on staking and the legitimization of yield-driven strategies through **ETF** filings further indicate a maturation of the market. The network's commitment to both institutional onboarding through RWA tokenization and expanding its developer base in emerging markets like Vietnam and Indonesia demonstrates a balanced growth strategy. By offering **EVM** compatibility, **Sei** positions itself as a strategic bridge for **Ethereum** developers seeking higher performance and specialized financial applications, rather than solely competing for entirely new ecosystems. This dual focus on regulatory adherence and developer accessibility aims to foster sustainable growth in the competitive Layer-1 landscape and accelerate the integration of traditional finance with blockchain technology.
Sei (SEI) current price is $0.197214, up 3.09% today.
Sei (SEI) daily trading volume is $79.1M
Sei (SEI) current market cap is $1.2B
Sei (SEI) current circulating supply is 6.2B
Sei (SEI) fully diluted market cap (FDV) is $1.9B