Cryptocurrency business: The largest business of cryptocurrency is gradually showing the true nature

At first glance, the week's biggest business news seems to have come directly from Wall Street. BlackRock has launched a tokenized money market fund for stablecoin reserves. Tether made another $1.5 billion in profits from its holdings in U.S. Treasuries. Tokenized gold continues to gain attention, although its use in decentralized finance remains limited. Even Bitcoin (BTC) mining is defined more by production costs, profitability and balance sheet management than by the Bitcoin price itself.

The business model of the digital asset industry is increasingly converging with traditional finance. Stabiloin reserves, tokenized money market funds, and on-chain collateral are becoming one of the most important revenue drivers in the industry, suggesting that the next phase of blockchain may be shaped by both the digital assets themselves and the financial infrastructure.

BlackRock launches tokenized reserve fund for stablecoin issuers

Asset management giant BlackRock has launched two tokenized money market products designed to help stablecoin issuers meet reserve requirements under the U.S. GENIUS Act, expanding its foray into blockchain-based financial infrastructure.

One of the funds tokenized its existing share of treasury liquidity strategies on Ethereum, allowing qualified investors to transfer ownership along the chain, while the underlying assets remained invested in cash and short-term U.S. government securities. The second fund is a new institutional money market tool tailored for the digital asset market. It supports multiple blockchains and automatically reinvests proceeds, making it suitable for stablecoin reserve management.

The release deepens BlackRock's participation in the fast-growing tokenized government bond market-the asset management company already owns BUIDL, the industry's largest tokenized government bond fund. The move also reflects a broader trend of Wall Street's shift to on-chain financial products after the passage of the GENIUS Act. The bill establishes a federal regulatory framework for payment stablecoins.

The DeFi footprint of tokenized gold remains small, despite record trading volumes

A report from RedStone found that tokenized gold bars performed strongly during periods of heavy gold sell-off, but despite market growth and a surge in transaction volume, their adoption in DeFi lending remains limited.

According to RedStone data, spot trading volume reached US$90.7 billion in the first quarter, and gold futures prices once exceeded US$5600 per ounce. However, Tether Gold and PAX Gold, which were used as collateral on Aave v3 and Morpho, were only about US$63 million, accounting for only 1.5% of the combined market value of US$4.2 billion. On March 23, gold fell 10% in a week, setting its worst weekly performance in more than four decades. Aave handled its largest XAUT clearing cluster without interruption; JPMorgan's Greg Shearer described it as an "extremely brutal wash."

Since then, gold futures have fallen more than 20% since their January highs on expectations of higher U.S. interest rates. RedStone's findings suggest that tokenized gold is resilient, but still faces infrastructure gaps as tokenized real-world assets expand.

During the March market sell-off, liquidations of tokenized gold collateral on Aave and Morpho surged. Source: RedStone

Trump-linked U.S. Bitcoin companies record production, Q2 losses narrow

Bitcoin miners associated with the Trump family reported record production in the second quarter, producing 932 BTC, and a net loss narrowed from the previous quarter.

Nasdaq-listed American Bitcoin, co-founded by Eric Trump and Donald Trump Jr., reported a record quarterly production of 932 BTC, helping mining revenue grow 8% to $67 million from $62.1 million in the first quarter. The company's net loss was $57.2 million, an improvement from a loss of $81.8 million in the first quarter.

Last month, the company completed a 1-to-15 reverse stock split to maintain its Nasdaq listing after its share price fell below the exchange's minimum bid requirement. The miner, which is majority-owned by Hut8, holds approximately 8002 BTC as of June 30 and has pledged approximately 3090 BTC as collateral under an equipment purchase agreement with Bitmain.

Despite improvements in production and revenue, U.S. Bitcoin companies are still not profitable. Its reverse stock split highlights the challenges it faces in a public listing, while its mortgaged Bitcoin positions expose the company to additional risk if BTC prices fall.

Tether's second-quarter profit of US$1.5 billion, Treasury yields bolster reserves

According to its latest quarterly assurance report, Tether achieved net operating income of US$1.5 billion in the second quarter, mainly due to interest earned on its U.S. Treasury holdings and repurchase agreements.

The assurance report showed that as of June 30, the reserve buffer was US$4.11 billion, and the amount of assets exceeding liabilities was equivalent. Despite the contraction of the broader stablecoin market, USDT's circulation supply increased by $446 million to $184.6 billion, maintaining Tether's share of more than 60% of the global market-a market value DeFiLlama estimates to be approximately $307 billion. Tether remains one of the largest holders of U.S. Treasury securities.

The company's earnings continue to benefit from high short-term interest rates, which increase income from treasury bills and cash equivalents. However, stronger profits and reserve surpluses are being achieved against the backdrop of continued pressure on the crypto industry and weakness in the stablecoin market, conditions that could inhibit future growth if the interest rate environment changes or the market shrinks intensifies.

USDT continues to dominate the stablecoin market due to its circulation supply. Source: DeFiLlama