The USD1 stablecoin, backed by Donald Trump’s World Liberty Financial (WLFI), has quickly become the seventh-largest stablecoin.
Launched just two months ago, it has grown from a market cap of $128 million to over $2 billion. The surge was boosted by Eric Trump’s announcement that MGX would use USD1 for a $2 billion investment in Binance.
Most of USD1’s issuance is on Binance’s BNB Chain, accounting for over 99% of its supply. A smaller portion is on Ethereum.
In late April, the coin’s market cap spiked 1,540%, growing from $128 million to $2.1 billion. The rapid rise led centralised exchanges, including HTX, to list USD1, with zero-fee withdrawals on the BEP-20 network.
Reports suggest that around 90% of USD1 investors are from outside the US, particularly Europe, Asia, and Latin America.
The coin’s growth aligns with Trump’s pro-stablecoin agenda, outlined in his January executive order to strengthen US leadership in digital financial technologies.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
US banks are now allowed to manage crypto assets on behalf of their customers. The US Office of the Comptroller of the Currency (OCC) confirmed that banks can buy, sell, and hold crypto in custody. They can also outsource certain services, such as custody and execution, to third parties.
Acting Comptroller Rodney Hood stated that financial institutions could also provide tax reporting, record-keeping, and sub-custody services. These services must comply with legal and risk management guidelines.
The decision marks a shift towards integrating crypto into traditional banking systems, with over 50 million Americans now holding digital assets.
Industry experts have welcomed the OCC’s move. Katherine Kirkpatrick Bos of StarkWare said it signals a shift in the OCC’s stance, while Coinbase’s Faryar Shirzad praised the regulatory clarity.
The change comes amid the Trump administration’s more crypto-friendly approach, which includes reversing previous restrictions on banks’ crypto activities.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The agenda will reportedly focus on the regime’s use of stolen crypto funds to finance weapons programmes. The issue has raised international concern over global security risks.
The summit, hosted by Canadian Prime Minister Mark Carney from 15 to 17 June in Alberta, is expected to address geopolitical challenges, including North Korea’s tightening alliance with Russia. Such ties have further complicated attribution of attacks and enforcement of sanctions, experts warn.
Investigations have linked North Korean hackers, notably the Lazarus Group, to major crypto heists. These include the $622 million Axie Infinity breach and February’s $1.4 billion Bybit attack. Analysts believe other cyber units are also active, making digital asset protection a growing priority.
The G7, comprising France, Germany, Italy, Japan, the UK, the US and Canada, aims to strengthen coordination against cybercrime. It also seeks to limit the regime’s ability to exploit the crypto ecosystem for hostile purposes.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The venture, called Nakamoto, is named after Bitcoin’s mysterious creator and will focus on acquiring and holding the cryptocurrency.
The funding includes $200 million in equity and $100 million in convertible debt. Plans for a merger with an already-listed Nasdaq firm are in place.
An official announcement is expected next week, and the public listing is likely to follow this summer. Nakamoto also plans to use Bitcoin as capital to invest in businesses worldwide, including Brazil, Thailand, and South Africa.
The approach mirrors moves by other crypto investment giants such as Michael Saylor’s Strategy and Jack Mallers’ Twenty One. The firm positions itself as offering institutional credibility with the potential for strong growth, appealing to investors seeking direct exposure to Bitcoin through the stock market.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Two long-inactive Bitcoin wallets, originally linked to the infamous Silk Road marketplace, have come back to life after nearly 11 years of silence. On 5 May 2025, blockchain monitoring platforms flagged two large transactions totalling 3,421 BTC, worth more than $322 million at the time of transfer.
The first wallet moved 2,343 BTC at block height 895,421. These funds were split into 31 outputs, with most redirected to a new Pay-to-Witness-Public-Key-Hash (P2WPKH) address. The second wallet, also created in July 2013, transferred 1,078 BTC at block height 895,433.
The transaction followed a similar pattern, moving funds to an unfamiliar destination address. Sani, the creator of timechainindex.com, confirmed that the Bitcoins originated from Silk Road activity, having been withdrawn in 2012.
The nature of the transfers was large and silent. The funds were redirected to fresh wallets, prompting speculation about the intent behind the moves. It is particularly intriguing due to its historic origins and potential regulatory implications.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Bhutan has launched the world’s first national-level crypto tourism payment system, in partnership with Binance Pay and DK Bank. Tourists can now pay for nearly everything, from flights to food, using over 100 cryptocurrencies like BTC, BNB, and USDC.
Payments are made via QR codes through the Binance app, with DK Bank converting crypto into Bhutan’s local currency instantly.
The new system offers benefits beyond convenience. Small businesses, especially in remote areas, can now accept crypto payments with just a smartphone. Local vendors, who previously lacked card payment infrastructure, now have new opportunities thanks to the system.
By eliminating cross-border payment issues, zero gas fees, and not relying on international card networks, the system makes transactions seamless. It sets a global precedent, potentially encouraging other countries to adopt similar models for tourism.
The Binance Pay Bhutan partnership is already making waves in the tourism sector, showing how crypto can connect cultures and improve travel experiences. Binance’s growing use case in tourism continues to build confidence in its token.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
New Hampshire has become the first US state to allow public funds to be invested in Bitcoin and other digital assets. Governor Kelly Ayotte signed House Bill 302 into law. The legislation enables the state treasury to allocate up to 10% of the general fund and other approved pools into eligible digital and precious metal assets.
To qualify for investment, digital assets must hold a market capitalisation above $500 billion — a threshold currently met only by Bitcoin. The law includes strict guidelines for asset custody, requiring state oversight or the use of regulated custodians and exchange-traded products.
The bill passed with divided opinion. Supporters highlighted the potential for higher returns, while critics raised concerns over financial stability. With this move, New Hampshire sets a precedent as other states, including Texas and Arizona, consider similar legislation.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Tether has partnered with Chainalysis to integrate its compliance and monitoring tools into the Hadron by Tether platform. The collaboration will provide users with advanced risk detection and real-time transaction monitoring, helping institutions meet regulatory requirements.
The move is part of a wider trend of increased oversight in the crypto industry.
Hadron by Tether, launched in November 2024, enables institutions, governments, and corporations to tokenise real-world assets like financial instruments and real estate. The platform has seen a surge in adoption, with the real-world asset (RWA) market growing by 10.5% in the past month.
Tether’s CEO, Paolo Ardoino, highlighted that this integration would provide institutional-grade compliance without compromising decentralisation.
Chainalysis is known for its security tools and blockchain data platform. It will now support Hadron users with risk detection, real-time transaction monitoring, and Know-Your-Transaction (KYT) services.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Gold and Bitcoin increased as investors waited for the Federal Reserve’s next move. At the same time, rising global tensions and trade worries kept markets on edge.
Spot gold rose 0.7% to $3,357 per ounce on Tuesday, driven by safe-haven demand. US gold futures added 1.3%, supported by fresh interest from Chinese investors. Central banks also continued moving away from the dollar, boosting gold’s appeal.
Bitcoin hovered near February highs, trading around $97,500. Markets remain sensitive to dovish signals that could lift Bitcoin closer to its previous peak near $100,000.
The Federal Reserve is expected to keep interest rates steady between 4.25% and 4.50%. Investors are closely watching for signs of whether persistent inflation and slowing consumer demand will delay potential rate cuts expected later this year.
Tensions flared after a Houthi missile landed near Tel Aviv, leading to Israeli strikes in Yemen. At the same time, Trump’s new tariff plans rattled trade nerves. Even so, Bitcoin stayed strong, fuelled by ETF demand and rate cut hopes.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
South Korea’s presidential race is turning towards cryptocurrency, with former labour minister Kim Moon-soo as the People Power Party’s candidate for the 3 June election. Reports say 16.3 million South Koreans own crypto assets, based on linked wallets and bank accounts as of February 2025.
Crypto is expected to be a major issue in the election, with both leading parties pledging policies to boost the sector.
Kim’s recent proposal to allow government bodies like the National Pension Service (NPS) and the Korea Investment Corporation (KIC) to invest in virtual assets has attracted attention.
He believes that integrating crypto into the national economy will enhance the market’s reputation and stability, especially for younger investors.
Additionally, Kim expressed his commitment to institutionalising the crypto industry to prevent financial losses for inexperienced traders.
Both the People Power Party and the opposition Democratic Party have laid out crypto-focused plans. While many in the crypto industry are encouraged by these policies, there remains scepticism over whether past promises will be fulfilled.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
