Weekly Recap: Stablecoins Gain Momentum as Banks and Fintechs Deepen Crypto Ties

How the Competition Will Play Out in the Great Stablecoin Race

As stablecoins spread across chains, exchanges, and payment apps, who will win the race for real adoption?

In this episode of Unchained, Laura is joined by Rob Hadick, General Partner at Dragonfly, and Sam MacPherson, Co-founder and CEO of Phoenix Labs, to break down the fast-moving world of stablecoins and stablechains.

They discuss Ethena’s USDe $5 billion drop, the rise of “stablecoin-as-a-service” models, the emergence of payment-focused blockchains like Tempo and Codex, and the return of TradFi heavyweights like Visa, Mastercard, and Western Union to the digital dollar race.

From liquidity challenges to regulatory shakeups and tokenized deposits, the conversation explores what it really takes to win the stablecoin wars, and, importantly, whether any of these players can even make a scratch to king Tether.

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:

• 💵 Global Stablecoin Wave: Citi teams up with Coinbase, Visa expands to new blockchains, Western Union files “WUUSD,” and Circle launches its Arc testnet with 100+ partners.

• ⚖️ SBF’s “Exculpatory” Post: Sam Bankman-Fried resurfaces online, insisting FTX “was never insolvent” and blaming lawyers for its collapse.

• 🏦 Tokenization Hits Wall Street: BlackRock-backed Securitize announces a $1.25B SPAC deal, while Consensys prepares an IPO with JPMorgan and Goldman Sachs.

• 🪙 ETHZilla’s $40M Ether Move: The Ethereum treasury firm sells $40M in ETH to fund a stock buyback amid pressure from activist investors.

• 🎯 Polymarket Returns to U.S.: The prediction platform eyes a November relaunch with a sports focus and confirms plans for a POLY token and airdrop.

• 💳 Mastercard Eyes Zerohash: Payments giant in talks to acquire the crypto infrastructure firm for up to $2B.

• 🚀 MegaETH Mania: Ethereum’s new layer 2 raises $1.39B in an oversubscribed token sale—28x the target.

• 🤖 Runaway Bot Chaos: A rogue trading bot sends Hyperliquid’s HYPE token up to $98 before crashing back down.

• 📰 Blockworks Shuts Down News: The crypto media outlet closes its newsroom to focus fully on data and analytics.

Global Stablecoin Push Gains Momentum as Major Players Announce New Initiatives

The stablecoin sector saw a wave of major developments this week, underscoring its growing integration into traditional finance. Citigroup announced a partnership with Coinbase to pilot stablecoin payment services, allowing institutional clients to move seamlessly between fiat and crypto. Citi’s head of payments, Debopama Sen, said clients increasingly demand programmable, 24/7 payment systems as the bank projects a $4 trillion stablecoin market by 2030.

Meanwhile, Coinbase deepened its ties to traditional finance through a second partnership with Apollo Global Management to expand stablecoin-backed lending and tokenized credit products. Visa also broadened its stablecoin network to four new blockchains, now supporting eight tokens across 40 countries, with stablecoin-linked card spending reaching a $2.5 billion annual run rate.

Elsewhere, Western Union filed a trademark for “WUUSD”, just days after revealing its USDPT stablecoin on Solana, signaling plans for global remittance integration. Circle launched the public testnet of its Arc blockchain, onboarding more than 100 partners including BlackRock, HSBC, and Visa. And Stable, a Bitfinex-backed layer 1 focused on USDT payments, announced Phase 2 of its pre-deposit campaign following backlash over alleged insider participation in the first round.

Sam Bankman-Fried Claims FTX “Was Never Insolvent” in New Online Manifesto

Convicted FTX founder Sam Bankman-Fried has resurfaced on social media, publishing a 14-page document claiming the collapsed exchange “was never insolvent” and that customers could have been repaid in full. Posted to his X account late Thursday, the document argues that FTX faced only a temporary liquidity crunch in 2022, which was worsened by its “external counsel” taking control.

Bankman-Fried asserted that FTX and its sister firm Alameda Research held up to $25 billion in assets against $13 billion in liabilities, and that if their investments had been retained, total holdings could now exceed $100 billion, including stakes in Anthropic and Robinhood. The document further claimed the exchange’s native FTT token would be worth $22 billion today.

The post reiterates arguments Bankman-Fried made at trial, where he was convicted on seven counts of fraud and conspiracy and sentenced to 25 years in prison. His renewed effort to recast the FTX collapse comes amid reports that allies are lobbying for a presidential pardon, though prediction markets currently assign the attempt slim odds.

Securitize and Consensys Prepare for Public Market Debuts

BlackRock-backed tokenization platform Securitize announced plans to go public through a merger with Cantor Equity Partners II, a special purpose acquisition company sponsored by Cantor Fitzgerald. 

The deal values Securitize at $1.25 billion in pre-money equity, with the combined firm set to trade on Nasdaq under the ticker SECZ as early as January. CEO Carlos Domingo told CNBC that “tokenization is what everybody’s talking about,” adding that the listing will allow investors to “index themselves to tokenization.” 

Securitize has partnered with firms including Apollo, KKR, and BlackRock, having helped launch the latter’s BUIDL fund on Ethereum. The company has tokenized over $4 billion in assets and will digitize its own equity once public.

Meanwhile, Ethereum developer Consensys, creator of the MetaMask wallet, is preparing an initial public offering led by JPMorgan Chase and Goldman Sachs, according to Axios. 

The listing would be one of the most significant for an Ethereum-native company. Founded by Joseph Lubin, Consensys develops software that powers decentralized applications and operates the Linea layer 2 network. A company spokesperson said it is “constantly exploring opportunities to expand its impact.”

In related news, a website claiming to be MetaMask’s token portal surfaced online, driving up betting odds of a MASK token launch to 35% on Polymarket, though the wallet provider has not confirmed its authenticity and has repeatedly warned users against phishing attempts.

ETHZilla Sells $40 Million in Ether to Fund Stock Buyback

Ethereum-focused treasury firm ETHZilla sold $40 million worth of ether from its reserves to finance a share repurchase program, the company confirmed Monday. 

The move follows pressure from activist investor Dimitri “Capybara Stocks” Semenikhin, who recently acquired a 2.2% stake and urged leadership to address the firm’s steep discount to its net asset value (NAV). ETHZilla shares had been trading at roughly half the value of its crypto holdings before the announcement.

Chairman and CEO McAndrew Rudisill said the company plans to “continue selling ETH to repurchase shares until the discount to NAV is normalized.” So far, ETHZilla has bought back 600,000 shares worth $12 million as part of a $250 million buyback plan approved in August. 

The firm still holds about $400 million in ether, and its stock jumped more than 14% following the news. Founders Fund, led by Peter Thiel, holds a 7.5% stake in the company.

Polymarket Set to Relaunch in U.S. With Sports Focus and Token Plans

Prediction market platform Polymarket is preparing to reenter the U.S. within weeks, marking a major comeback after being forced offshore and fined $1.4 million by the Commodity Futures Trading Commission in 2022. 

The relaunch, expected by late November, will center on sports betting and begin in an invite-only phase during the peak football and basketball seasons, according to Bloomberg.

The company recently acquired QCX, a licensed derivatives exchange and clearinghouse, giving it the regulatory footing needed to operate in the U.S. once again. 

Chief Marketing Officer Matthew Modabber confirmed that Polymarket will introduce a native token, POLY, and an accompanying airdrop after the domestic rollout. “We want the token to have true utility and longevity,” Modabber said, emphasizing that the launch will follow only once the U.S. platform is fully established.

Mastercard Eyes $2 Billion Acquisition of Zerohash

Mastercard is reportedly in advanced talks to acquire Chicago-based crypto infrastructure firm Zerohash in a deal valued at up to $2 billion, according to Fortune. Founded in 2017, Zerohash builds blockchain and stablecoin infrastructure that enables banks and fintechs to launch crypto trading, payments, and tokenization services. Its clients include Interactive Brokers, Franklin Templeton, and BlackRock’s BUIDL Fund.

The acquisition would mark Mastercard’s latest expansion into digital assets following its 2021 purchase of blockchain analytics firm CipherTrace and its participation in a stablecoin consortium with Robinhood and Kraken. Zerohash recently raised $104 million in September at a $1 billion valuation backed by Apollo, Morgan Stanley, and SoFi.

MegaETH Token Sale Draws $1.39 Billion in Bids, Oversubscribed Nearly 28 Times

Ethereum layer 2 project MegaETH has closed its highly anticipated public sale after attracting over $1.39 billion in commitments from more than 50,000 participants, according to the project’s official post on X. The auction, which aimed to raise around $50 million, was oversubscribed by 27.8 times, highlighting intense demand for the platform’s native token, MEGA.

MegaETH said that participants who bid below $0.0999 will automatically receive refunds, while bids at that price are currently being reviewed for allocation. Final results are expected by November 5, with refunds for unallocated users to follow.

The sale offered 5% of MEGA’s total 10 billion token supply, with the option of a one-year lock-up for a 10% discount. Developed by MegaLabs, MegaETH aims to deliver sub-millisecond transaction speeds and process up to 100,000 transactions per second, drawing backing from prominent figures including Ethereum co-founders Vitalik Buterin and Joe Lubin.

Bot Sends Hyperliquid’s HYPE Token Soaring to $98 Before Crash

Hyperliquid’s native token, HYPE, briefly surged from $47 to $98 in under a minute on the decentralized exchange Lighter before crashing back to its prior range on Monday. 

Lighter attributed the extreme move to a “runaway bot” that aggressively cleared its order book in a low-liquidity market. The platform later removed the price spike from its chart interface, citing user experience concerns, while emphasizing that onchain records remain unchanged.

The decision sparked sharp criticism from traders who accused Lighter of obscuring market data. “You’re effectively lying to your users by doing this,” crypto analyst Duo Nine said on X, arguing the exchange should acknowledge its illiquid order books instead. Others defended the move as practical given charting limitations.

Blockworks Shuts Down News Division to Focus on Data Expansion

Crypto media outlet Blockworks has announced the closure of its news division as part of a strategic pivot toward data and software products. Co-founder Jason Yanowitz said the company is “becoming a software and data first organization,” citing strong growth in its analytics business over the past two years.

Founded in 2017, Blockworks built its reputation through podcasts, research, events, and news coverage before launching a data platform now used by investors and blockchain firms. Yanowitz noted that demand for “data as a primary information source” has outpaced traditional reporting.

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