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Bitcoin gains slightly as markets await Trump’s next move

Bitcoin ticked up slightly on Tuesday as markets reacted to hints of trade progress from President Trump’s cabinet ahead of his rally in Michigan. Bitcoin climbed 0.5% to around $95,400, while Ethereum and Solana posted stronger gains of 3% and 2%, respectively.

The president is set to speak in Macomb County, Michigan, celebrating his administration’s first 100 days. Analysts say the event could impact crypto markets if Trump reinforces a pro-Bitcoin stance or hints at institutional integration of digital assets.

Trade optimism also played a role. US Commerce Secretary Howard Lutnick said a new deal had been reached with one country impacted by Trump’s tariffs, although full details remain under wraps. Trump echoed this optimism, noting progress in talks with India.

Markets are also watching for inflation updates, with the Federal Reserve’s preferred measure due Wednesday. Economists warn that Trump’s tariffs could fuel inflation and dampen growth, factors likely to influence crypto alongside broader risk assets.

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Bank of Italy warns about crypto risks and US policy influence

The Bank of Italy has once again expressed concerns over the growing influence of crypto in traditional finance. In its latest Financial Stability Report, the central bank warned that the global integration of digital assets poses a significant risk to financial stability.

For years, central banks have raised alarms about the systemic threats crypto presents. These include volatility, regulatory gaps, and the potential for contagion across markets. However, recent political changes have intensified these worries.

The bank noted that the election of Donald Trump and his administration’s pro-crypto policies have led to significant price increases in digital assets. The bank cautioned that closer integration of crypto with traditional finance could create vulnerabilities in global markets.

As of March, the global crypto market was valued at $2.75 trillion. Bitcoin accounted for over 60% of this, with 30% coming from other unbacked crypto assets. Stablecoins, linked to traditional currencies, made up only 9%.

The Bank of Italy has also raised concerns about the growing ties between government, finance, and crypto. It specifically highlighted the use of Bitcoin in corporate treasuries and ETFs, warning of potential conflicts of interest and governance gaps.

The Bank warned about the influence of dollar-backed stablecoins like Tether’s USDT and Circle’s USDC. A widespread run on these could destabilise global markets by triggering a fire sale of US government bonds.

Despite the Bank of Italy’s cautious stance, some Italian banks are embracing crypto. Intesa Sanpaol o, Italy’s largest bank, purchased bitcoins and underwrote the country’s first blockchain bond.

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Telegram bonds go blockchain with $500M tokenised fund

Libre and the TON Foundation have launched a $500 million tokenised fund, the Telegram Bond Fund, to bring Telegram’s $2.4 billion in corporate debt onto the blockchain. Available on The Open Network (TON), the fund gives institutional and accredited investors direct access to Telegram’s bonds.

The fund also allows participation in future bond offerings and offers collateral options within the TON ecosystem. The launch is one of the largest institutional moves in the Real-World Asset (RWA) space, which is set to exceed $50 billion this year.

Libre, a regulated real-world asset platform, manages the fund with infrastructure that supports fiat and stablecoin subscriptions. Investors will use TON-native wallets to handle assets. The initiative bridges traditional finance with blockchain technology.

The move reflects growing interest in tokenised RWAs. Major financial players like BlackRock and Circle are tokenising assets such as US Treasuries and real estate. The value locked in RWA protocols has doubled in the past year, highlighting the demand for blockchain integration in traditional finance.

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SEC closes PayPal stablecoin probe with no action

The US Securities and Exchange Commission has dropped its investigation into PayPal’s dollar-backed stablecoin, PYUSD, without taking enforcement action.

PayPal confirmed in a 29 April filing that the SEC notified the firm in February that the inquiry had been closed. The regulator first issued a subpoena in November 2023, requesting documents related to the stablecoin.

PYUSD is said to be fully backed and redeemable in US dollars. Despite that, it has struggled to gain market share, with a market cap of just $880 million, far below competitors like Tether and Circle.

The stablecoin’s circulating supply has increased by 75% in 2025, helped by new incentives. US users can now earn 3.7% annually by holding PYUSD, and a new partnership with Coinbase aims to boost adoption further.

PayPal also posted strong first-quarter results, beating expectations with $1.33 earnings per share and $7.8 billion in revenue. It highlighted major share buybacks and plans for stablecoin innovation.

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UK and US join forces to promote responsible cryptocurrency adoption

The United Kingdom and the United States are set to strengthen their collaboration in advancing cryptocurrency adoption. UK Finance Minister Rachel Reeves confirmed that the UK plans to introduce a comprehensive regulatory framework for crypto assets.

The government hopes to work closely with the US to promote the responsible use of the asset class.

Under President Trump’s leadership, the US has become increasingly supportive of cryptocurrency, marking a significant shift towards pro-crypto policies. With these developments, both countries aim to foster wider, more secure adoption of crypto.

The UK is specifically focusing on regulatory frameworks to prevent misuse while encouraging innovation.

In its bid to become a global leader in digital assets, the UK has published draft legislation on crypto regulation. Reeves stated that international cooperation would be essential for success.

She emphasised that collaboration between the UK and the US could establish groundbreaking regulatory standards, elevating the crypto industry to new heights.

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Abu Dhabi institutions plan a dirham-pegged stablecoin

Three major Abu Dhabi institutions are teaming up to launch a dirham-pegged stablecoin, pending regulatory approval. The partners include Abu Dhabi’s sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC).

The stablecoin will be regulated by the UAE’s central bank and backed by the dirham. It aims to support use cases like machine-to-machine communication and artificial intelligence. The project will operate on the ADI blockchain, created by the ADI Foundation, a non-profit focused on blockchain adoption.

The initiative seeks to position the UAE as a leader in global blockchain innovation. It also aims to strengthen the country’s digital infrastructure and provide new financial opportunities.

The UAE joins other nations exploring alternatives to US dollar-backed stablecoins, as global interest in national digital currencies grows.

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The stablecoin market remains largely dominated by Tether

Tether (USDT) continues to lead the stablecoin market with a 66% market share, while USDC follows at 28%, according to Nansen’s 25 April report. Ethena’s USDe stablecoin ranks a distant third with just over 2%.

Although USDC has grown faster, Tether’s dominance is expected to persist due to its large user base and the market’s ‘winner-takes-most’ nature. Tether remains the most profitable stablecoin issuer, with profits of nearly $14 billion expected in 2024.

USDC’s growth has accelerated since November, thanks to a more favourable regulatory environment. It is particularly appealing to institutions seeking regulatory clarity. However, traditional financial institutions, such as PayPal and Fidelity, are increasing competition with their stablecoins.

Ethena’s USDe stablecoin remains competitive, offering yield-bearing features with a 19% annualised yield. It has been integrated into both CEXs and DeFi protocols, positioning it for future growth.

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South Korea’s ruling party targets crypto deregulation in its new agenda

South Korea’s People Power Party (PPP) has pledged to approve spot crypto ETFs and remove the ‘one exchange, one bank’ rule before the end of the year.

These moves are aimed at increasing competition and offering consumers more choice in the crypto market.

Additionally, the PPP plans to institutionalise corporate and institutional investor participation in crypto and legalise spot crypto ETFs. Nonprofits will also be allowed to trade crypto starting from Q2.

The PPP’s reforms also include a ‘global standard’ regulatory framework for stablecoins and the creation of a Virtual Asset Special Committee under the presidential office.

The shift mirrors global trends towards crypto deregulation, drawing comparisons with the US’s Trump-era policies.

PPP’s proposals depend on the results of South Korea’s upcoming election on 3 June. The Democratic Party’s candidate, Lee Jae-myung, has a strong lead in the polls, which could affect the implementation of these reforms.

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Mastercard launches stablecoin payment support

Mastercard is stepping up its crypto ambitions by enabling stablecoin transactions through new partnerships. The payment giant announced a collaboration with crypto exchange OKX, processor Nuvei, and fintech firm Circle.

The goal is to build an ecosystem where users can spend stablecoins and merchants can accept them.

A new card issued with OKX will allow stablecoin holders to pay directly using crypto, while Nuvei and Circle will support the infrastructure behind these transactions.

Mastercard’s Chief Product Officer said stablecoins have the potential to simplify global payments. They can also empower both consumers and businesses by offering more choices.

Mastercard plans to allow users to spend stablecoins from their wallets at over 150 million merchant locations worldwide that already accept its cards.

The move comes as regulatory discussions around stablecoins continue in the US. The Securities and Exchange Commission recently stated that certain dollar-pegged tokens do not qualify as securities. However, it stopped short of offering clarity on yield-bearing or algorithmic stablecoins, leaving questions open for future decisions.

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El Salvador keeps buying Bitcoin under the IMF radar

El Salvador continues quietly accumulating Bitcoin, even as it complies with conditions set by the International Monetary Fund (IMF). Although the government paused Bitcoin activity to secure a $1.4 billion loan, the Bitcoin Office kept buying. It added 32 BTC last month, now holding over 6,160 BTC worth $584 million.

The small daily purchases adhere to the country’s ‘one Bitcoin a day’ policy.

The IMF confirmed El Salvador’s fiscal sector is meeting its non-accumulation pledge, but the Bitcoin Office operates outside those fiscal definitions. The technical loophole has allowed the country to continue acquiring Bitcoin without breaching the agreement.

The reforms agreed with the IMF include scaling back the Chivo wallet initiative and removing Bitcoin’s mandatory status as legal tender.

Despite the pressure, President Nayib Bukele remains committed to the Bitcoin strategy. In January, El Salvador’s Legislative Assembly passed amendments removing Bitcoin as a compulsory payment method and tax payment option.

These changes, effective from 1 May, were necessary to unlock IMF funding. They also opened access to an additional $2 billion in development financing aimed at stabilising the economy and reducing debt, which recently reached 85% of GDP.

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