Lucas Matheson, the CEO of Coinbase Canada, revealed that the company has teamed up with Canadian stablecoin issuer Stablecorp to assist in marketing its fiat-collateralized stablecoin, QCAD, and is investing an undisclosed sum in it to increase access to tokenized Canadian dollars at the Blockchain Futurist Conference in Toronto. Matheson stated they requested the federal government create a national digital assets strategy. Based on his argument, crypto is strategic; therefore, they hoped the new administration would recognize the strategic importance of cryptocurrency. This followed the April federal elections in Canada, which resulted in the election of Prime Minister Mark Carney, who had previously expressed disapproval of cryptocurrencies. Matheson highlights the necessity of a stablecoin for the Canadian market In an exclusive interview on May 13, Matheson acknowledged the existence of a stablecoin for Canadians as crucial. He further stated that stablecoins are particularly necessary because the nation has “no peer-to-peer [payment] rail” and “wire transfers cost $45 and take 45 minutes of paperwork.” Moreover, he claimed that stablecoins make it possible to make 24/7, instantaneous, borderless payments, which was already possible with current technology. According to Stablecorp’s website, the most recent report on QCAD’s fiat reserve backing was from July 2024, when there was only about $175,000 worth of QCAD in circulation. On the other hand, the US dollar-backed stablecoins Tether and USDC make up the majority of the stablecoins’ $245 billion market capitalization as of May 13, according to CoinGecko data. In light of these variations in the stablecoins, Matheson emphasized the need for a stablecoin created especially for the Canadian market to solve present problems with the payment infrastructure. In addition, Coinbase stated in a blog post on March 26 that Canada lacked a clear path for stablecoin adoption , partly because its government has not yet removed securities regulation barriers for fiat-backed stablecoins. The exchange further stated that it must start considering instruments instead of securities. Meanwhile, according to the US Securities and Exchange Commission’s April statement, if stablecoins were only promoted to make payments, they are not considered securities in the country. Canadian voters expressed their strong desire for a digital assets strategy during the April election According to WonderFi CEO and President Dean Skurka, Canadian voters demonstrated that they wanted the government to take action on cryptocurrency when they cast their ballots on April 28. Based on his argument, this could be achieved if policymakers followed the United States and Europe in fostering an environment more conducive to blockchain development. Additionally, that month, Canadians eagerly awaited the political leaders’ plans regarding digital assets as the country’s federal election approached. This resulted from millions of Canadians owning, using, or working in cryptocurrency, which was becoming an increasingly important area for innovation and economic growth. Most of this active base was under 50, making them a powerful political force. The election and the administration had an opportunity for policymakers to encourage voters’ desire for clarity regarding Canada’s digital future. In 2022, Conservative Party leader Pierre Poilievre gained popularity when he supported Bitcoin and decentralized finance, giving people more control over their finances and, therefore, less control over politicians and banks. He aimed to make Canada the world’s blockchain capital and for its people to embrace digital currencies such as Bitcoin to escape inflation. While he is a fan of digital innovation, Mark Carney, a former governor of the Bank of Canada affiliated with the Liberal Party, has yet to be persuaded that digital coins such as stablecoins will upend the monetary system. He has argued that digital currency would have a more solid and secure foundation because of central bank digital currencies, or CBDCs He said stablecoins were not a revolutionary alternative to the traditional monetary system but merely an extension. Carney stated that CBDCs would form the basis of a more stable, programmable financial future and lower the risks associated with digital currency. KEY Difference Wire helps crypto brands break through and dominate headlines fast
The world of cryptocurrency often witnesses significant movements, but few grab attention quite like a major institutional player making a substantial investment. Recent reports indicate that asset manager Abraxas Capital has been on an aggressive accumulation spree, particularly focused on Ethereum (ETH). This move, involving hundreds of millions of dollars, is not just a headline; it’s a potential indicator of shifting sentiment and growing confidence among traditional finance giants regarding the digital asset space, specifically concerning Ethereum . What Exactly Did Abraxas Capital Acquire? According to data highlighted by blockchain analytics firm Lookonchain on the social media platform X, Abraxas Capital has significantly increased its holdings of Ethereum over a very short period. The core of the news reveals a staggering acquisition: Over the past six days, Abraxas Capital reportedly purchased a total of 211,030 ETH . At the time of the report, this substantial accumulation was valued at approximately $477.6 million . A notable portion of this came in the last 12 hours preceding the report, with an additional 33,482 ETH acquired, valued at around $84.7 million . This rapid pace of acquisition underscores a deliberate strategy by Abraxas Capital to build a significant position in Ethereum . Such large-scale purchases by institutional entities are often interpreted as bullish signals for the underlying asset and the broader crypto market . Why Are Institutions Like Abraxas Capital Looking at Ethereum? The interest from institutional players in Ethereum is multifaceted. While Bitcoin is often seen as ‘digital gold’ and the primary store of value in the crypto space, Ethereum offers a different value proposition that appeals to sophisticated investors: Foundation of Web3: Ethereum is the leading smart contract platform, serving as the backbone for decentralized finance (DeFi), Non-Fungible Tokens (NFTs), and a vast ecosystem of decentralized applications (dApps). Investing in ETH is, in essence, investing in the infrastructure of the next generation of the internet. Yield Opportunities: With the transition to Proof-of-Stake (PoS), Ethereum offers staking rewards. Institutions can earn a yield on their ETH holdings, making it an attractive asset compared to traditional low-yield investments. Network Effect: Ethereum boasts the largest developer community and the most established ecosystem among smart contract platforms. This network effect creates a powerful moat, attracting more users and innovation. Evolving Economics: The implementation of EIP-1559 introduced a burning mechanism for transaction fees, making ETH potentially deflationary under certain network conditions. This scarcity model is appealing to investors. Diversification: For institutions primarily holding Bitcoin or traditional assets, adding Ethereum provides diversification within the digital asset class, capturing exposure to the smart contract and dApp ecosystem. Abraxas Capital ‘s decision to allocate nearly half a billion dollars towards Ethereum suggests a strong conviction in these underlying fundamentals and the long-term growth potential of the network. What Does This Massive Purchase Mean for the Crypto Market and ETH Price? Institutional inflows of this magnitude can have several significant impacts on the crypto market and specifically the ETH price : Potential Impact Area Explanation Increased Demand Large purchases directly increase demand for ETH, potentially pushing the price upwards, especially if supply on exchanges is limited. Market Confidence Significant buys by known entities like Abraxas Capital signal validation to other investors, potentially encouraging further institutional and retail participation. Liquidity Dynamics As institutions accumulate and potentially move assets off exchanges for long-term holding or staking, it can reduce available supply for trading, impacting market liquidity. Price Stability (Potentially) Institutional holders often have longer time horizons than retail traders, which could contribute to more stable price action in the long run, although volatility remains inherent in the crypto market . Narrative Building These events reinforce the narrative of institutional adoption, which is a key driver for broader market growth and regulatory clarity. While a single purchase, even a large one, doesn’t guarantee a sustained price increase, it adds significant buying pressure and contributes positively to the overall market sentiment surrounding Ethereum and the viability of the crypto market for large-scale investment. Are There Challenges or Risks Associated with Such Large Institutional Bets? Investing in cryptocurrency, even for experienced asset managers like Abraxas Capital , comes with inherent risks and challenges: Market Volatility: The crypto market is known for its extreme price swings. A nearly $500 million position is subject to significant fluctuations, potentially leading to substantial unrealized gains or losses in short periods. Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is still evolving globally. Changes in regulations could impact the usability, legality, or tax treatment of Ethereum holdings. Security Risks: Holding large amounts of digital assets requires robust security measures to protect against hacks, theft, or loss of private keys. Institutions must employ sophisticated custody solutions. Execution Risk: Acquiring such a large amount of ETH without significantly moving the market requires careful execution, often utilizing over-the-counter (OTC) desks rather than public exchanges. Liquidity for Exit: While the market is liquid, exiting a position of this size without impacting the ETH price could also present challenges. Abraxas Capital , as a professional asset manager, is undoubtedly aware of these risks and likely has strategies in place to mitigate them. Their willingness to proceed with such a large investment suggests they believe the potential rewards outweigh these challenges. Looking Ahead: What Could This Mean for the Future of Ethereum? The move by Abraxas Capital is more than just a snapshot in time; it’s a data point contributing to a larger trend of increasing institutional interest in Ethereum . If more asset managers follow suit, the implications could be profound: Increased Stability: Greater institutional participation could potentially lead to a more mature and stable market over time, as large holders are less likely to engage in panic selling. Further Innovation: Institutional capital flowing into the ecosystem can help fund development and innovation within the Ethereum network and its associated dApps. Regulatory Clarity: As more established financial players enter the space, it increases the pressure on regulators to provide clear guidelines, which can benefit the entire crypto market . Mainstream Adoption: Institutional adoption paves the way for easier access and understanding for mainstream investors and corporations. The long-term ETH price trajectory will depend on a confluence of factors, including network development, regulatory environment, macroeconomic conditions, and continued adoption. However, significant institutional accumulation like that seen from Abraxas Capital is undoubtedly a positive sign for the asset’s future prospects. Conclusion: A Bullish Signal from a Big Player Abraxas Capital ‘s reported acquisition of 211,030 ETH, valued at nearly $478 million, over just six days is a powerful statement. It highlights growing institutional conviction in Ethereum as a core digital asset, separate from or alongside Bitcoin. This significant capital inflow provides a strong vote of confidence in the network’s technology, ecosystem, and future potential. While the crypto market remains volatile and subject to various influences, moves of this scale from established asset managers are key indicators of the ongoing maturation and increasing acceptance of digital assets within traditional finance. Investors and enthusiasts alike will be watching closely to see how this trend develops and its ultimate impact on the ETH price and the broader market. To learn more about the latest Ethereum trends, explore our articles on key developments shaping Ethereum institutional adoption .
Yields on U.S. Treasury notes have spiked, creating a ripple effect in the cryptocurrency market and raising questions about Bitcoin’s resilience. The shift in investor sentiment comes as the U.S.
Yields on the 10-year are rising amid renewed risk sentiment from U.S.-China tariff relief, testing crypto’s resilience as narratives shift.
Tether, the stablecoin issuer, has purchased 4,812.22 Bitcoin for $458 million at an average price of $95,319.83 per Bitcoin, marking a significant investment ahead of the launch of its new Bitcoin treasury company, Twenty One. The purchase was made in preparation for Twenty One's planned merger with Cantor Equity Partners, which will see the company listed on the Nasdaq. Twenty One, led by Jack Mallers, is set to become a publicly traded entity through this SPAC merger. The Bitcoin acquired by Tether will be sold to Twenty One upon the completion of the merger at the same purchase price, contributing to a planned treasury of over 42,000 Bitcoin, valued at approximately $4.4 billion. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
Tether has made significant waves in the cryptocurrency market by acquiring 4,812 Bitcoin for Twenty One Capital, enhancing their investment strategy amid a SPAC merger. This $458.7 million investment highlights
Quantum computing poses a real threat to crypto, and slow-moving governance processes risk leaving blockchains vulnerable, according to Colton Dillion, a co-founder of Quip Network, which provides quantum-proof vaults for storing digital assets. While the technology, which uses the quantum states of subatomic particles to perform calculations instead of transistors and binary code, is still in its infancy, companies including Google and Microsoft are pressing forward with research and development. The goal is a massive step-up in speed that makes tough calculations like cracking encryption, such as that used to protect blockchains, faster and simpler. And when quantum computing becomes available, any attacker is unlikely to announce their presence immediately. “The threat won’t start with Satoshi’s keys getting stolen," Dillion said in an interview. “The real quantum attack will look subtle, quiet, and gradual, like whales casually moving funds. By the time everyone realizes what’s happening, it’ll be too late." Dillion's doomsday scenario involves a quantum-computing-powered double-spend attack. In theory, quantum computing could reduce the mining power required for a traditional 51% attack down to about 26%, Dillion said. "So now you've compromised the 10,000 largest wallets. You rewind the chain, liquidate those 10,000 largest wallets, then double spend all the transactions, and now you've really got a nuclear bomb,” is how he imagines it. The industry, of course, is working to find a solution. Bitcoin developer Agustin Cruz, for instance, proposed QRAMP , a Bitcoin Improvement Proposal (BIP) that mandates a hard-fork migration to quantum-secure addresses. Quantum startup BTQ has proposed replacing the proof-of-work consensus system that underpins the original blockchain entirely with quantum-native consensus. The problem is that the proposals must gain community approval. Blockchain governance, such as Bitcoin Improvement Proposals (BIPs) and their Ethereum equivalents, Ethereum Improvement Proposals (EIPs), tends to be rife with politics, making it a long, inherently cautious process. For example, the Bitcoin community's recent resolution on the OP_RETURN function was years in the making, with months of developer debates about what's considered the "proper" use of the blockchain. Ethereum's upgrades, like the Merge, also faced lengthy debates and delays . Dillion argues that the governance process leaves crypto dangerously exposed because quantum computing threats will evolve much faster than the protocols can respond. “Everyone's trying to do this from the top down by starting with a BIP or an EIP and getting everyone's buy-in together. But we think that this is a very difficult, heavy lift,” he said. Quip Network’s quantum-proof vaults aim to circumvent the political inertia by allowing immediate user-level adoption without requiring protocol upgrades. The vaults leverage hybrid cryptography, blending classical cryptographic standards with quantum-resistant techniques to provide blockchain-agnostic security. Effectively, they allow the whales, holders of large amounts of a cryptocurrency, to secure their stashes while waiting for the machinations of blockchain governance to get it together. Crypto communities can't afford leisurely debates, he argues. “The BIP and EIP processes are great for governance, but terrible for rapid threat response,” said Dillion. "When quantum hits, attackers won’t wait for community consensus.” Colton Dillon is speaking at the IEEE Canada Blockchain Forum, part of Consensus 2025 in Toronto. The IEEE is a Knowledge Partner of Consensus. Read more: Quantum Computing Group Offers 1 BTC to Whoever Breaks Bitcoin's Cryptographic Key
Stablecoin issuer Tether bought $458.7 million worth of Bitcoin for Twenty One Capital, a Bitcoin investment firm it backed that’s awaiting the completion of a Special Purpose Acquisition Company (SPAC) merger with Cantor Equity Partners. Tether snapped up 4,812.2 Bitcoin ( BTC ) at $95,319 each and transferred it to an escrow wallet on May 9, Cantor Equity Partners disclosed in a May 13 filing with the US Securities and Exchange Commission. It brings Twenty One’s total Bitcoin holdings to 36,312 BTC, as Cantor Equity Partners holds 31,500 BTC on behalf of the firm, which will trade under the ticker XXI once the SPAC merger is complete. Twenty One’s CEO, Jack Mallers, said on May 13 that they’re already in the approval process of the merger, but didn’t give an exact estimate on when the transaction would be complete. Twenty One is already the third largest corporate Bitcoin holder, trailing only Strategy and Bitcoin mining firm MARA Holdings at 568,840 Bitcoin and 48,237 Bitcoin, respectively, BitcoinTreasuries.net data shows. Tether is a majority stakeholder in Twenty One alongside crypto exchange Bitfinex. The Wall Street heavyweight Cantor Fitzgerald is sponsoring the merger, providing financial advisory services and securing $585 million in funding to support Twenty One’s Bitcoin investments. Japanese investment holding firm SoftBank also invested $900 million into Twenty One, which is led by Strike CEO Jack Mallers. Strategy may have a legitimate competitor Twenty One said in an April presentation to the SEC that is looking to supplant Michael Saylor’s Strategy , formerly MicroStrategy, to become the “superior vehicle” for investors seeking “capital-efficient Bitcoin exposure.” The company is among many Bitcoin buying firms , but promises to be a “pure play” for investors seeking Bitcoin exposure with Bitcoin-native operations and more flexibility for strategic capital raises. Twenty One Capital’s comparison of its Bitcoin treasury plan to that of Strategy’s. Source: SEC Twenty One said its key success metric will be Bitcoin per share and not the traditional earnings per share metric, as it will prioritize buying up Bitcoin over making a profit. Related: Nakamoto Holdings merges with KindlyMD to build Bitcoin treasury Twenty One is aiming to reach 42,000 Bitcoin by the time it launches. Earlier filings showed that 23,950 Bitcoin is expected to come from Tether, 10,500 Bitcoin from Softbank and about 7,000 Bitcoin from Bitfinex, which will be converted into equity at $10 per share. Cantor Equity Partners’ (CEP) share price soared from $10.65 to $59.73 on May 2 but has since fallen back to $29.84, Google Finance data shows. CEP rose another 5.2% in after-hours following the recent purchase. Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
In a significant development for cryptocurrency markets, the U.S. Securities and Exchange Commission (SEC) has postponed its ruling regarding BlackRock’s iShares Bitcoin Trust’s proposed in-kind redemption mechanism. As reported by
UBS says its wealthy clients are pulling money out of U.S.-dollar assets and shifting their investments to gold- crypto, and Chinese markets over trade tensions and a volatile global economy. Investors felt safe keeping most of their wealth in U.S.-based assets for years because of the country’s strong economy, stable currency, and deep financial markets. Still, recent trade disputes, new tariffs, and concerns about the long-term strength of the dollar are crushing their confidence. UBS clients reduce U.S.-dollar exposure as volatility rises The co-head of wealth management for Asia at USB, Amy Lo, said that the company’s wealthy clients are pulling away from U.S.-dollar investments as they feel uneasy about putting too much of their money in assets tied to the U.S. dollar amid global economic uncertainty and the ongoing trade tensions between the United States and China . Amy Lo also noted that most of their clients are turning to gold because it isn’t tied to any single government or currency, while others are putting their cash in cryptocurrencies like Bitcoin and Ethereum, which are becoming more widely accepted as alternative assets that balance traditional portfolios. Pro-crypto lawyer and strong advocate for XRP holders, John Deaton, even commented in a post on X saying, “We have officially reached the point where it is far more riskier to have zero exposure to Crypto than it is to allocate a small percentage of your net worth to it.” Clients are also looking for opportunities that offer growth without relying on the U.S. economy alone, which makes them more focused on managing risks and not just chasing high returns. UBS and other wealth management firms stated that these investors are adopting structured asset allocation models that spread risk more evenly. Morgan Stanley, for example, recommends a 40-40-15 split whereby 40% of your assets are in fixed-income bonds, another 40% in equities or stocks, and 15% in alternative investments like private equity or hedge funds, with the remaining 5% held in cash or cash-like assets in case of market downturns. Investors regain confidence in China and shift allocations Many wealthy investors who avoided the Chinese market for the past few years because of poor performance, strict regulations, and ongoing tensions with the United States are now slowly shifting their money back into Chinese assets due to strong stock performance, a more positive trade environment , and innovations from Chinese companies. Hong Kong’s stock market, the Hang Send Index (HSI) , is one of the best-performing stock indexes in the world in 2025, and Amy Lo explains that clients are now asking her directly about investment opportunities in the country after years of avoiding anything to do with China. This shift shows how quickly investor sentiment can change when signs of progress and stability appear. The recent tariff truce between the U.S. and China helped cool down some trade war tensions that affected global markets. The United States lowered its tariffs on most Chinese imports from 145% to 30% for 90 days, while China cut down its duties from 125% to 10% and agreed to remove some of their countermeasures set in 2018, which gave investors hope that trade will continue to improve and make China a more attractive opportunity. A private wealth management expert at Morgan Stanley believes that the recent trade agreement between China and the U.S. has created new growth opportunities in both countries and that repositioning investor interest back to China is simultaneous with a recovery in U.S. growth stocks. Morgan Stanley expects its high-net-worth clients will earn 7% to 8% in total annual returns over the next seven to ten years, but Christina warns that achieving these returns is now more difficult because of volatile markets. For this reason, clients are now rethinking how much risk they are taking, how their portfolios are balanced, and what role each type of investment plays in helping them meet their financial goals. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot