Weekly Recap: BlackRock Eyes Tokenized ETFs, SEC Pushes Onchain Rules

Why the War Over the USDH Ticker on Hyperliquid Is Bullish for Crypto

The competition for Hyperliquid’s native stablecoin has been fierce. Shuyao Kong of MegaETH, which just announced USDm, explains why every chain will have a protocol-native stablecoin.

Stablecoins are supposed to be boring, but the fight for the USDH ticker on Hyperliquid has turned into one of the most dramatic battles in crypto. 

From Ethena suddenly pulling out, to Paxos revamping its bid, to whispers of favoritism, the contest has put protocol-native stablecoins in the spotlight. 

In this episode, MegaETH co-founder Shuyao Kong, who just announced their own stablecoin USDm, speaks about why they chose Ethena as a partner, and why alignment with Hyperliquid matters more than short-term incentives. 

She also explains why ecosystems need both yield-chasing and yield-agnostic stablecoins — and whether Circle and Tether could be pushed aside in the next wave of competition.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Now, let’s get into this week’s news! In today’s edition:

• 🏦 BlackRock explores tokenized ETFs for around-the-clock trading

• 📜 SEC Chair Atkins pushes for clear rules on onchain capital raising

• 📊 Nasdaq files to list tokenized stocks on U.S. markets

• 💵 Forward Industries raises $1.65B for Solana treasury

• 🚨 MYX accused of $170M Sybil exploit in massive airdrop

• 🌀 Scroll DAO pauses governance after key resignations

• 🛡️ Global supply-chain hack threatens millions of crypto users

• ⚡ Linea token launch stumbles with outages and price drop

BlackRock Weighs Tokenizing ETFs for 24/7 Trading

BlackRock, the world’s largest asset manager, is exploring how to bring exchange-traded funds onto blockchain networks, according to people familiar with the effort cited by Bloomberg. The initiative would involve creating tokenized versions of funds tied to real-world assets, such as equities, subject to regulatory approval.

Tokenized ETFs could expand trading beyond Wall Street’s regular hours, widen international access, and even allow shares to be used as collateral within crypto markets. The move follows BlackRock’s successful launch of its spot bitcoin ETF and the tokenized money-market fund BUIDL, which has grown past $2 billion in assets. Chief executive Larry Fink has repeatedly said “every financial asset can be tokenized,” highlighting the firm’s long-term vision.

While tokenized assets remain a small market compared with the multi-trillion-dollar ETF industry, BlackRock’s interest signals growing momentum. 

Atkins Presses Onchain Capital Raising Without Legal Uncertainty

U.S. Securities and Exchange Commission Chairman Paul Atkins used a keynote at the OECD in Paris to urge clearer rules for blockchain finance. 

He said entrepreneurs and investors should be able to raise capital onchain “without endless legal uncertainty,” while reaffirming that most tokens fall outside securities law. The remarks come under the SEC’s Project Crypto initiative, which seeks to modernize regulations so trading, lending, and staking can operate under a single framework with updated custody rules. 

Atkins described the approach as offering only the “minimum effective dose of regulation” needed to protect investors, a shift from the enforcement-heavy policies of prior years. 

The SEC and Commodity Futures Trading Commission will hold a joint roundtable later this month to explore how products like perpetual contracts and decentralized finance could return to U.S. markets.

Nasdaq Seeks SEC Approval to List Tokenized Stocks

Nasdaq has filed a proposal with the U.S. Securities and Exchange Commission to allow trading of tokenized shares on its exchange, a step that could mark the first time blockchain-based equities appear on a U.S. regulated market. The plan would let investors choose between traditional and tokenized settlement while preserving the same shareholder rights as underlying stocks.

In its filing, Nasdaq said tokenized assets would carry the same execution priority as conventional shares and be clearly labeled for clearing through the Depository Trust Company. “The solution… leverages the current infrastructure and market structure,” Chief Financial Officer Sarah Youngwood said at a recent industry conference.

The initiative arrives as regulators in Washington consider broader rule changes for digital assets. Experts caution integration with the DTCC’s massive settlement system could prove costly and complex, but others view the proposal as a breakthrough that could bring blockchain directly into Wall Street’s core plumbing.

Forward Industries Raises $1.65 Billion for Solana Treasury

Forward Industries has closed a $1.65 billion private placement to create what it calls the largest Solana-focused corporate treasury to date. The Nasdaq-listed firm secured commitments from Galaxy Digital, Jump Crypto, and Multicoin Capital, among others. Shares of Forward surged as much as 128% in pre-market trading, while Solana’s SOL token gained over 2%.

The company said the funds will be used to anchor its balance sheet in SOL and participate actively in Solana’s decentralized finance markets. Multicoin co-founder Kyle Samani has been appointed chairman of the board, with executives from Galaxy and Jump joining as observers.

The move positions Forward alongside other firms building Solana treasuries, including Upexi and Sharps Technology. Commenting on the momentum, Bitwise CIO Matt Hougan noted that “all the ingredients are there for an epic end-of-year run for Solana,” pointing to treasury accumulation and pending exchange-traded product filings as catalysts for what he called “Solana season.”

In related news, the Avalanche Foundation entered late-stage talks to raise $1 billion through two U.S.-based investment vehicles that would use the capital to buy discounted AVAX tokens directly from the foundation.

MYX Faces $170 Million Sybil Attack Allegations

Decentralized derivatives platform MYX Finance is under scrutiny after blockchain analytics firm Bubblemaps alleged a single entity exploited its token airdrop for roughly $170 million. Investigators flagged about 100 wallets, all created around the same time and funded through OKX, that together claimed nearly 10 million MYX tokens. Bubblemaps called the incident the “biggest airdrop Sybil of all time.”

The claims follow MYX’s token soaring more than 1,000% in two days, sparking a short squeeze that liquidated $40 million in positions. In its response, MYX said rewards were tied to genuine trading activity and liquidity provision, though it acknowledged allowing high-volume users to change addresses before launch. “From the perspective of focusing on trading itself, we did not impose specific prohibitions on such requests,” the team stated.

Scroll DAO Halts Governance After Leadership Resignations

Scroll DAO, the decentralized community behind Ethereum layer 2 Scroll, has paused its governance process following several high-level departures. 

Delegate Olimpio disclosed on X that DAO leader Eugene resigned earlier this week, with co-founder Haichen Shen confirming the team is “redesigning governance.”

The decision has sparked questions about the status of ongoing proposals, including a treasury management plan. “They are redesigning governance, but the pathway forward is unclear,” Olimpio noted, adding that communication on next steps has been limited.

Scroll contributor Raza Zaidi emphasized that the move should be seen as a temporary pause rather than a permanent dismantling of governance. For now, active proposals remain visible but their execution is uncertain.

The DAO, which launched alongside its native token SCR, operates in tandem with the Scroll Foundation and a Security Council.

Global Crypto Users Warned After Massive Supply-Chain Hack

Millions of crypto users were on alert this week after hackers injected malware into widely used JavaScript packages downloaded billions of times each week. The attack began when a developer was tricked by phishing emails, giving attackers access to publish tainted code that could secretly swap wallet addresses and redirect funds across major blockchains including Bitcoin, Ethereum, and Solana.

Security experts initially urged users to halt transactions, warning the compromise could be catastrophic. But implementation errors exposed the malware quickly, causing automated builds to fail and limiting losses. Onchain data shows attackers netted less than $505 before being shut down.

Ledger’s chief technology officer Charles Guillemet called the outcome “fortunate,” while cautioning that supply-chain attacks remain a serious threat.

Linea Airdrop Marred by Outages as Token Slides

Consensys’ Ethereum Layer 2 network Linea launched its LINEA token this week, but the rollout was hampered by technical issues. Ahead of the token generation event, block production on the mainnet paused for about 45 minutes due to sequencer performance problems, later described as a “partial outage” that lasted nearly 10 hours.

While 749,000 wallets were eligible to claim 9.36 billion tokens, many users reported failed transactions and rising gas fees. By contrast, Binance recipients accessed their allocations instantly, prompting criticism from community members. Linea head Declan Fox said the network was simply overwhelmed, noting, “once you get punched in the ring, you need to react well, which we did.”

After the bumpy debut, Linea tokens lost more than 20% from their peak. Seeking to calm concerns, Consensys founder Joseph Lubin suggested future rewards for long-term holders, hinting that additional distributions from Consensys or MetaMask-linked projects could be directed to those who keep LINEA tokens on hand.

Watch the weekly recap on YouTube!