Core Insights - Rapid growth of stablecoins may introduce financial stability risks, prompting calls for closer oversight from the European Central Bank (ECB) analysts [1][2] - The market cap of stablecoins has reached a record of over $314 billion this year, with projections suggesting it could hit $2 trillion by 2028 [5] Group 1: Financial Stability Risks - The main vulnerability of stablecoins is a potential loss of confidence in their peg, which could trigger a run, particularly impacting the cryptocurrency market [2] - A failure of a single stablecoin entity could have widespread repercussions, even without a systemic crisis [3] - Widespread adoption of stablecoins could lead to a flight of bank deposits, increasing banks' vulnerability to economic shocks [3] Group 2: Regulatory Concerns - Regulatory arbitrage from "multi-issuance" poses a risk, where EU entities partner with non-EU entities to issue stablecoins, potentially leading to reserve shortfalls [4] - ECB analysts recommend additional pre-conditions for EU market access to mitigate these risks [4] Group 3: Market Dynamics - The enactment of the GENIUS Act in the U.S. has provided guidelines for stablecoin issuance, facilitating greater market adoption [6] - Institutions and companies that previously hesitated to enter the stablecoin market are now actively participating due to the new regulatory framework [6]

Welcome to The Protocol, CoinDesk's weekly wrap of the most important stories in cryptocurrency tech development. I’m Margaux Nijkerk, a reporter at CoinDesk. In this issue: Ethereum Developers Prep for Fusaka, Second Upgrade of 2025 Anthropic Research Shows AI Agents Are Closing In on Real DeFi Attack Capability Ethereum Devs Push ZK ‘Secret Santa’ System Toward Deployment Bitnomial Prepares to Debut First CFTC-Regulated Spot Crypto Market Unknown block type "divider", specify a component for ...

Core Insights - Firelight is a new decentralized finance (DeFi) protocol that enables XRP users to stake their tokens while providing on-chain protection against hacks [1] - The protocol aims to introduce a risk infrastructure similar to traditional finance, enhancing the resilience of the DeFi ecosystem [2] Group 1: Protocol Features - Firelight allows XRP holders to stake their tokens and earn rewards linked to the demand for DeFi "cover," which helps protocols absorb losses from exploits [1] - The staking process involves two phases: users deposit XRP to receive stXRP, a liquid ERC-20 token, which can be traded or used as collateral, and the staked XRP backs the Firelight cover pool [2] - If a protocol incurs a loss that meets Firelight's criteria, the cover pool can pay out from the capital staked by users, similar to how traditional insurers operate [3] Group 2: Technical Infrastructure - Firelight utilizes Flare's FAssets system to integrate XRP into DeFi, allowing users to mint FXRP, a wrapped version of XRP, without relying on centralized bridges [4] - The protocol has undergone audits by OpenZeppelin and Coinspect and has initiated a bug bounty program with Immunefi to enhance security [4] Group 3: Market Context - Despite XRP's significant market capitalization of $130 billion, it has lacked native staking options, with total value locked on XRPL at only $72 million [5] - Firelight aims to provide XRP holders with a new yield-earning opportunity while establishing a security layer that aligns with institutional standards in the DeFi space [5]

Economic Indicators - The US November ISM services index rose unexpectedly by +0.3 to 52.6, surpassing expectations of a decline to 52.0, marking the strongest pace of expansion in 9 months [1] - The US November ADP employment change fell by -32,000, indicating a weaker labor market, with the largest decline in over 2.5 years [1] - US MBA mortgage applications decreased by -1.4% for the week ending November 28, with the purchase mortgage sub-index increasing by +2.5% and the refinancing sub-index declining by -4.4% [2] Stock Market Movements - Stocks initially declined due to labor market weakness but recovered after the ISM services report indicated unexpected expansion [3] - The S&P 500 Index rose by +0.18%, the Dow Jones Industrials Index increased by +0.47%, while the Nasdaq 100 Index fell by -0.06% [6] - Chipmakers showed strength, with Microchip Technology up more than +7% after forecasting stronger-than-expected Q3 adjusted EPS [4][14] Corporate Earnings - Q3 corporate earnings season is nearing completion, with 83% of S&P 500 companies exceeding forecasts, leading to a +14.6% increase in earnings, significantly above the expected +7.2% [9] - American Eagle Outfitters reported Q3 net revenue of $1.36 billion, exceeding the consensus of $1.32 billion, and raised its 2026 comparable sales growth forecast [17] Interest Rates and Economic Policy - The markets are pricing in a 98% chance of a -25 basis point rate cut at the next FOMC meeting on December 9-10, influenced by the weaker-than-expected ADP employment report [9][11] - The 10-year T-note yield decreased by -2 basis points to 4.07%, reflecting expectations of a dovish Fed policy [5][11] Company-Specific News - Microsoft shares fell more than -1% after reports indicated the company is reducing its AI software sales quotas due to consumer resistance [2][22] - Fiserv Inc saw a rise of more than +5% following insider buying by its CFO [18] - Acadia Healthcare's stock dropped more than -14% after cutting its full-year adjusted EPS forecast significantly below consensus [20]

Core Viewpoint - Hut 8 Corp. experienced a significant decline in stock price, dropping 13.52% to close at $37.68, largely influenced by the performance of its subsidiary, American Bitcoin, which saw a 51% intra-day drop due to the eligibility of locked-up shares for trading [1][2]. Group 1 - Hut 8 Corp. shares fell for the second consecutive day, reflecting investor concerns stemming from the volatility in American Bitcoin's stock [1][2]. - The sell-off was attributed to investors exercising options to realize profits for the first time, leading to increased market volatility [2]. - Despite the drop, Bitcoin prices increased by 1.31% to around $92,000, although they are down 14.20% over the past 30 trading days [3]. Group 2 - There is a belief that while Hut 8 has potential as an investment, certain AI stocks may offer better returns with lower risk [4].

Core Insights - The emergence of a globally significant euro stablecoin is a logical outcome given the stability of the euro and the size of the euro economy, which processed approximately €2.2 trillion daily in 2023 [1][2] - The shift to tokenized finance is irreversible, and stablecoins are becoming essential infrastructure for financial services, with projections of $30 trillion in tokenized real-world assets by 2034 and up to $5 trillion in tokenized digital securities by 2030 [2][3] - The current euro stablecoin market is small, with only about €600 million in circulation, primarily due to Europe's lack of integration with existing financial infrastructure [3][5] Euro Stablecoin Market - The euro is the second most-active currency globally, yet most financial activity settles in dollars, indicating a need for better infrastructure to support euro stablecoins [3][4] - Stablecoins processed approximately $28 trillion in 2024, surpassing the combined volumes of Visa and Mastercard, highlighting the scale at which stablecoins operate [4] - The dominance of dollar-based stablecoins, which account for around 99% of a $300+ billion market, emphasizes the need for a credible euro stablecoin to compete effectively [5][6] Future Outlook - The next major expansion in stablecoins is expected to focus on a scalable euro stablecoin, which is crucial for the size of Europe's economy [6] - Policymakers and investors are encouraged to consider the optimal mix of on-chain euro options that balances innovation with financial stability [5][6]

We recently published 10 Stocks Stealing the Spotlight Early as Christmas Looms. Bitmine Immersion Technologies, Inc. (NYSEAmerican:BMNR) is one of the top performers on Tuesday. Bitmine Immersion jumped by 10.26 percent on Tuesday to close at $31.91 apiece as investors loaded portfolios ahead of the looming deadline to receive its upcoming dividends. According to the company, it would give out $0.01 dividend to its common shareholders on record as of Friday, December 5, payable on December 29, 2025. Ad ...

Group 1: Bitcoin and Crypto Market - Bitcoin has rebounded to a two-week high, trading just below $94,000, indicating potential recovery in the wider crypto market after a significant sell-off that wiped over $1 trillion off its value since October [6][22] - Shares in American Bitcoin, backed by Donald Trump Jr. and Eric Trump, lost nearly 40% of their value recently, while World Liberty Financial's WLFI token has dropped over 50% from its peak in September [7] - Strategy, a company heavily involved in Bitcoin, announced a new $1.44 billion reserve to meet short-term obligations, aiming to avoid selling Bitcoin below its net asset value [8][9][10] Group 2: Anthropic and IPO News - AI startup Anthropic is preparing for what could be the largest IPO ever, with a recent valuation of $183 billion, as it competes with OpenAI to go public [2] Group 3: Labor Market and Economic Indicators - The upcoming ADP private payrolls report is expected to influence the Federal Reserve's decisions, especially with government data delayed [3] - Despite record online sales during the holiday shopping season, consumer confidence has declined, leading to an 87% chance of a rate cut by the Fed next week [4] Group 4: Company Earnings and Market Reactions - American Eagle reported earnings of 53 cents per share and revenues of $1.36 billion, exceeding expectations and showing strong holiday season guidance [33] - CrowdStrike's revenue for the third quarter was $1.23 billion, slightly above expectations, but shares fell as investors anticipated stronger results [38] - Macy's reported its strongest growth in three years with adjusted earnings per share guidance raised to as much as $2.20, yet shares declined due to concerns over the current holiday period [52]

智通财经APP获悉，周三，比特币概念股走高，截至发稿，Iren Ltd(IREN.US)、Coinbase(COIN.US)涨超 4%，Strategy(MSTR.US)涨超2.6%，Circle(CRCL.US)涨超3%，Mara Holdings(MARA.US)涨超1%。 ...

Market Overview - Bitcoin is currently trading above $92,000, a significant level that traders are monitoring, indicating a potential move towards $100,000 [1][6] - Recent bullish developments have improved investor sentiment, including Vanguard's introduction of crypto products and Bank of America's recommendation for a 4% crypto asset allocation for wealth management clients [1] Performance Analysis - Bitcoin is recovering from a challenging November, where it experienced an 18% decline [2] - Bitcoin exchange-traded funds (ETFs) are rebounding after facing their second-largest monthly outflows on record [2] Institutional Influence - Bitcoin's price movements are heavily influenced by institutional flows, which tend to slow mid-month, making sustained breakouts less likely [3] - The recent break above $92,000 may pave the way for a retest of the $100,000 level [3] Federal Reserve Expectations - Investors are anticipating a 25 basis point rate cut at the upcoming Federal Reserve policy meeting on December 10 [3] - Prediction markets suggest an 80% chance that Kevin Hassett will be nominated to replace Jerome Powell as Fed Chair, which is viewed positively for the crypto industry [3][4] Regulatory Environment - Under Kevin Hassett's leadership, the White House National Economic Council published a report recommending regulations for the blockchain industry and digital assets, which could be beneficial for the crypto market [4] - A pro-crypto Fed Chair could facilitate the integration of blockchain technology into the banking system [5]