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Bitcoiner Jack Mallers assures Strike investors, Twenty One won’t distract

Strike CEO Jack Mallers said his new role as CEO of Bitcoin treasury firm Twenty One Capital won’t distract him from heading Strike, revealing the platform processed over $6 billion in volume in 2024.

“This is not a shift in my commitment; it’s an extension of it,” Mallers said in an April 25 letter to Strike investors.

Every decision based on if it is “good for Bitcoin”

“If Bitcoin wins, humanity wins. Every business decision I make starts with one question: Is this good for Bitcoin? Twenty One exists because I believe it is good for Bitcoin and, therefore, good for the world,” Mallers said.

Mallers explained that Strike, a Bitcoin payments platform, and Twenty One Capital have different goals. He said Strike focuses on making “Bitcoin accessible globally,” while Twenty One aims to increase “Bitcoin ownership per share (BPS) and pioneer Bitcoin-native financial tools.”

“These are separate companies, but they share the same ethos: Bitcoin wins, we win,” he said.

Cryptocurrencies, Tether
Source: Jack Mallers

It comes after Twenty One Capital announced its launch on April 23, with the backing of Tether, SoftBank and Cantor Fitzgerald.

The firm is looking to challenge Michael Saylor’s Strategy to become the “superior vehicle for investors seeking capital-efficient Bitcoin exposure.” It revealed its plans to launch with 42,000 Bitcoin (BTC).

Cryptocurrencies, Tether
Source: Michael Saylor

Mallers shared key metrics for Strike publicly for the first time, revealing that in 2024, the firm posted over $6 billion in volume, recorded 600% year-on-year growth, maintained an 85% gross profit margin, and reported zero customer acquisition costs.

Mallers said that despite maintaining a team of 75 employees, the company expects to “generate 8-9 figures in net profit in 2025.”

Several crypto enthusiasts had taken to social media to ask how the logistics would work for Mallers, being the CEO of Strike and Twenty One Capital.

Related: 5 Bitcoin charts predicting BTC price rally toward $100K by May

Crypto commentator “Alex” asked in an April 25 X post, “What will be the fate of Strike? New incoming CEO? Or will he pull an Elon Musk?” Similarly, Domingo Guerra asked, “Who will be running Strike!?”

Meanwhile, several crypto industry participants have publicly speculated that Twenty One Capital may acquire Strike in the future. Swan Bitcoin CEO Cory Klippsten said it is “probably safe to assume that this company will acquire strike.” 

Daniel Sempere Pico said, “How long before Twenty One acquires Strike?” However, neither Mallers or Strike has indicated any intention of doing so.

Magazine: Pokémon on Sui rumors, Polymarket bets on Filipino Pope: Asia Express

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Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX

Key points:

  • Bitcoin price pushed above $95,000, increasing the chance of a rally to $100,000.

  • Institutional investor demand is back, suggesting that the bearish trend could be over.

  • Select altcoins could break above their respective overhead resistance levels if Bitcoin remains strong

Bitcoin (BTC) bulls are trying to sustain the price above $95,000, but they are likely to face significant resistance from the bears. Will buyers succeed in pushing the price toward the psychologically important level of $100,000, or is a pullback around the corner? That is the big question on the traders’ minds.

A positive sign is that inflows for US spot Bitcoin exchange-traded funds have increased since April 21, per Farside Investors data. Coinbase Institutional head of strategy John D’Agostino said in a recent interview with CNBC that several institutions purchased Bitcoin in April to hedge against currency inflation and macro uncertainty as Bitcoin mirrors “the characteristics of gold.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
Crypto market data daily view. Source: Coin360

However, some analysts doubt the sustainability of the current Bitcoin rally. One of the red flags is that the sentiment, as measured by the Crypto Fear & Greed Index, slipped from a score of 72 out of 100 on April 23 to 60 on April 25, though Bitcoin is trading close to $95,000. Select analysts expect Bitcoin to pullback toward $87,000

Could Bitcoin sustain above $95,000, triggering buying in altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

Bitcoin has been trading near the $95,000 level, suggesting that the bulls are holding on to their positions as they anticipate a move higher.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
BTC/USDT daily chart. Source: Cointelegraph/TradingView

The 20-day exponential moving average ($87,437) is sloping up, and the relative strength index (RSI) is near the overbought zone, signaling that the bulls are in command. A close above $95,000 could drive the BTC/USDT pair to $100,000. 

Sellers will try to halt the up move at $100,000, but if the bulls do not allow the price to dip below $95,000, the prospects of a break above the overhead resistance increase. The pair may then climb to $107,000. The bears will have to yank the price below the moving averages to regain control.

Ether price prediction

Ether’s (ETH) relief rally is facing resistance at the 50-day SMA ($1,812), but a positive sign is that the bulls have not allowed the price to dip below the 20-day EMA ($1,696).

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
ETH/USDT daily chart. Source: Cointelegraph/TradingView

The 20-day EMA is flattish, but the RSI has jumped into the positive zone, signaling a slight advantage to the bulls. If the 50-day SMA is scaled, the ETH/USDT pair could reach the breakdown level of $2,111. The bears may pose a strong challenge at $2,111, but if the bulls overcome it, the pair could skyrocket to $2,550.

Sellers are likely to have other plans. They will try to pull the price below the 20-day EMA. If they can pull it off, the pair could tumble toward $1,537.

XRP price prediction

XRP (XRP) has been trading near the 50-day SMA ($2.18) for the past two days, indicating that the bears are fiercely defending the level.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
XRP/USDT daily chart. Source: Cointelegraph/TradingView

A minor positive for the bulls is that they have not allowed the price to skid below the 20-day EMA ($2.13). The bulls will again try to propel the XRP/USDT pair to the resistance line, which is a critical level to watch out for. The pair could rally to $3 if buyers pierce the resistance line.

On the downside, a break and close below the 20-day EMA suggests that the bears remain in charge. The downside momentum could pick up on a break below $2. The pair may then plummet to $1.60.

BNB price prediction

BNB (BNB) turned down from $620 but is taking support at the moving averages. This suggests a change in sentiment from selling on rallies to buying on dips.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
BNB/USDT daily chart. Source: Cointelegraph/TradingView

Buyers will try to push the price above $620. If they manage to do that, the BNB/USDT pair may rally to $644. Sellers will try to stall the up move at the $644 level, but if the bulls prevail, the pair could soar to $680.

This bullish view will be invalidated in the near term if the price turns down and breaks below the moving averages. That could sink the pair to $566, indicating that the markets have rejected the breakout above the downtrend line.

Solana price prediction

Solana (SOL) is struggling to stay above the $153 level, indicating that the bears are active at higher levels.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
SOL/USDT daily chart. Source: Cointelegraph/TradingView

The upsloping 20-day EMA ($136) and the RSI in the positive zone indicate that the bulls are in control. If buyers push and maintain the price above $153, the SOL/USDT pair could jump to $180.

The moving averages are the crucial support on the downside. A break and close below the 50-day SMA ($129) suggests that the pair could consolidate between $153 and $110 for a few days.

Dogecoin price prediction

Dogecoin (DOGE) bounced off the 20-day EMA ($0.16) on April 24, indicating that the bulls are buying on dips.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
DOGE/USDT daily chart. Source: Cointelegraph/TradingView

The DOGE/USDT pair could reach $0.21, which is a crucial resistance to watch out for. If buyers pierce the $0.21 level, the pair will complete a double-bottom pattern. This bullish setup has a target objective of $0.28.

Contrarily, if the price turns down and breaks below the moving averages, the pair may remain range-bound between $0.21 and $0.14 for a while. The advantage will tilt in favor of the bears on a break below the $0.14 support.

Cardano price prediction

Cardano (ADA) closed above the 50-day SMA ($0.68) on April 23, signaling that the bears are losing their grip.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
ADA/USDT daily chart. Source: Cointelegraph/TradingView

The 20-day EMA ($0.65) has started to turn up, and the RSI is in the positive zone, suggesting that the path of least resistance is to the upside. The ADA/USDT pair could rally to $0.83, where the bears may step in.

Any pullback is expected to find support at the 20-day EMA. If the price rebounds off the 20-day EMA, it signals a bullish sentiment. Sellers will have to drag the price below the 20-day EMA to sink the pair to $0.58.

Related: SUI’s 73% weekly price gains top crypto market — New price record in reach?

Sui price prediction

Sui (SUI) picked up momentum after buyers pushed the price above the moving averages on April 22.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
SUI/USDT daily chart. Source: Cointelegraph/TradingView

The rally of the past few days has pushed the RSI into the overbought territory, suggesting a minor consolidation or correction in the next few days. Any pullback is expected to find support in the zone between the 38.2% Fibonacci retracement level of $3.14 and the 50% retracement of $2.94.

A shallow pullback increases the possibility of a rally to $4.25 and then to $5. Sellers will be back in the driver’s seat if they pull the SUI/USDT pair below $2.86.

Chainlink price prediction

Chainlink (LINK) has started a recovery, which is expected to face strong selling at the overhead resistance of $16.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
LINK/USDT daily chart. Source: Cointelegraph/TradingView

If the price turns down from $16, it is expected to find support at the 20-day EMA ($13.53). A solid bounce off the 20-day EMA increases the likelihood of a break above $16. The LINK/USDT pair may then climb to the resistance line of the descending channel pattern. A break above the channel signals a potential trend change.

Sellers will have to tug the price below the moving averages to regain control. The pair may then drop to $11.89 and eventually to the support line.

Avalanche price prediction

Avalanche (AVAX) is facing resistance at the overhead resistance of $23.50, but a positive sign is that the bulls have not ceded much ground to the bears.

Price predictions 4/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
AVAX/USDT daily chart. Source: Cointelegraph/TradingView

The 20-day EMA ($20.22) has started to turn up, and the RSI is in the positive territory, indicating that buyers have the edge. If the price breaks and closes above $23.50, the AVAX/USDT pair will complete a double-bottom pattern. That could open the doors for a rally to the pattern target of $31.73.

Alternatively, if the price turns down and breaks below the moving averages, the pair could remain stuck inside the $23.50 to $15.27 range for a few days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology.

Sweeping tariffs could threaten the US manufacturing rebound

Despite the geopolitical chaos and market collapses triggered by President Trump’s announcement of broad tariffs on international goods, some supporters still hope the strategy will produce a “golden age” of American industry.

In fact, the high and crudely designed tariffs set out by the administration could damage a recent rebound in US manufacturing. Building factories and the supply chains they run on takes years—even decades—of steady investment. Meanwhile, tariffs have the immediate impact of boosting costs for critical supplies, many of which come from overseas—helping to raise prices and, in turn, slowing demand.

None of that is good for those planning to invest in US manufacturing. The longer-terms effects of the tariffs are, of course, unknown. And it’s that uncertainty, above all else, that could derail a reindustrialization still in the early stages for much of the country. Read the full story.

—David Rotman

AI is pushing the limits of the physical world

Architecture often assumes a binary between built projects and theoretical ones. What physics allows in actual buildings, after all, is vastly different from what architects can imagine and design. That imagination has long been supported and enabled by design technology, but the latest advancements in artificial intelligence have prompted a surge in the theoretical. Read the full story.

—Allison Arieff

This story is from the most recent edition of our print magazine, which is all about how technology is changing creativity. Subscribe now to read it and to receive future print copies once they land.

The must-reads

I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.

1 Donald Trump wants to make AI a national priority
That’s in spite of his plans to axe the agency in charge of implementing the plan. (Ars Technica)
+ The new executive action outlines plans for AI courses and programs. (Bloomberg $)
+ But schools across the US are struggling with their existing curriculums. (Axios)

2 Driverless car makers won’t have to report as much crash data
An overhaul of the US Department of Transport’s rules limits what companies need to declare. (Wired $)
+ Unsurprisingly, the new framework benefits Tesla. (The Verge)
+ Officials claim it will allow US automakers to compete better with China. (AP News)

3 Apple plans to wind down US iPhone production in China
Instead, the handsets will be assembled in India. (FT $)+ It’s switching up its supply chains amid the tariff chaos. (Bloomberg $)
+ The change could come as soon as 2026. (The Guardian)

4 Meta is finally cracking down on spam
The days of multiple hashtags are over. (The Verge)

5 How Elon Musk’s friends control access to his company shares
Most people who hold stakes in SpaceX have no idea how much money it makes. (WSJ $)

6 How Israel used the war in Gaza to deploy new military AI 
To a degree that’s never been seen before. (NYT $)
+ Meanwhile, the US is preparing to offer Saudi Arabia a $100 billion arms package. (Reuters)
+ Generative AI is learning to spy for the US military. (MIT Technology Review)

7 The US is facing millions of measles cases in future decades
That’s if falling vaccination rates continue. (WP $)
+ How measuring vaccine hesitancy could help health professionals tackle it. (MIT Technology Review)

8 Brazil’s AI welfare app is wrongly rejecting vulnerable applications
Digitizing its complex systems has come at a cost. (Rest of World)
+ An algorithm intended to reduce poverty might disqualify people in need. (MIT Technology Review)

9 How smart glasses can help people with hearing loss
Real-time subtitles for the conversations around you may not be too far away. (New Yorker $)
+ What’s next for smart glasses. (MIT Technology Review)

10 What it’s like to read an AI-generated book about yourself 📖
Extremely uncanny valley vibes. (Slate $)

Quote of the day

“While it is true that an AI has no feelings, my concern is that any sort of nastiness that starts to fill our interactions will not end well.”

—Screenwriter Scott Z Burns reflects on the ethics of not saying please and thank you to chatbots, the New York Times reports.

One more thing

The quest to figure out farming on Mars

Once upon a time, water flowed across the surface of Mars. Waves lapped against shorelines, strong winds gusted and howled, and driving rain fell from thick, cloudy skies. It wasn’t really so different from our own planet 4 billion years ago, except for one crucial detail—its size. Mars is about half the diameter of Earth, and that’s where things went wrong.

The Martian core cooled quickly, soon leaving the planet without a magnetic field. This, in turn, left it vulnerable to the solar wind, which swept away much of its atmosphere. Without a critical shield from the sun’s ultraviolet rays, Mars could not retain its heat. Some of the oceans evaporated, and the subsurface absorbed the rest, with only a bit of water left behind and frozen at its poles. If ever a blade of grass grew on Mars, those days are over. 

But could they begin again? And what would it take to grow plants to feed future astronauts on Mars? Read the full story.

—David W. Brown

We can still have nice things

A place for comfort, fun and distraction to brighten up your day. (Got any ideas? Drop me a line or skeet ’em at me.)

+ Understanding the science behind stress can give us handy tools to cope with it.
+ Rockalina the turtle is enjoying the great outdoors after spending close to 50 years indoors.
+ If you don’t have the greenest of thumbs, don’t panic—these plants are super easy to take care of.
+ Why TikTok wants you to live like a dinosaur. 🦕

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Despite the geopolitical chaos and market collapses triggered by President Trump’s announcement of broad tariffs on international goods, some supporters still hope the strategy will produce a “golden age” of American industry. Trump himself insists, “Jobs and factories will come roaring back into our country.”

While it’s possible that very targeted tariffs could help protect some nascent sectors of domestic manufacturing, the belief in the power of blunt tariffs flies in the face of manufacturing reality. And it’s not just the idea of a speedy return to economic prowess thanks to smoke-belching factories and the sudden ability to cheaply assemble armies of iPhones that strains credulity. The sweeping tariffs ignore the complexities of today’s supply chains and the way technology advances are shifting how and where goods are made.

In fact, the high and crudely designed tariffs set out by the administration could damage a recent rebound in US manufacturing. Building factories and the supply chains they run on takes years—even decades—of steady investment. Meanwhile, tariffs have the immediate impact of boosting costs for critical supplies, many of which come from overseas—helping to raise prices and, in turn, slowing demand.

None of that is good for those planning to invest in US manufacturing.

“Tariffs, in general, as a tool for encouraging the type of manufacturing we want in the US are a terrible instrument,” says Elisabeth Reynolds, a professor of the practice at MIT.

Reynolds, who was an advisor to President Biden on manufacturing and economic development, says the Trump tariffs will raise the costs of US manufacturing without providing incentives for “strategic investments in the technologies we care about for national and economic security.”

Willy Shih, a professor at Harvard Business School, says the tariffs feel like “random acts of violence” in how they hurt manufacturing and supply chains. Because the tariffs proposed so far “are so scattershot and change so often,” he says, “it’s basically freezing up investments. Who is going to make any kind of investment commitment when things are changing so fast?”

There are already indications that the prospect of widespread tariffs could be harming the US manufacturing boom. One closely scrutinized survey called the Purchasing Managers’ Index, or PMI, showed troubling early signs of rising costs for manufacturers due to the tariffs. Other indicators watched carefully by policy wonks, including surveys of manufacturers by the New York Federal Reserve Bank, the Richmond Fed, and the Philadelphia Fed, also show a loss of confidence among US producers and drops in new orders and hiring.

The longer-terms effects of the tariffs are, of course, unknown. For one thing, the specifics—how large, how long, and on what countries—seem to be constantly shifting. And that’s a big part of the problem: For manufacturers and investors, uncertainty is the killer of plans for expansion, new factories, and even the R&D that feeds into new products.

It’s that uncertainty, above all else, that could derail a reindustrialization still in the early stages for much of the country.

In fact, US manufacturing in the years following the covid pandemic has been booming—or at least the groundwork for such a boom is getting built. Until the most recent few months, spending on the construction of factories had been soaring. New facilities to build batteries, solar cells, semiconductors, electric motors, and other new technologies are springing up all around the country—or were until very recently.

“We never had more construction starts in the United States than we’ve had in the past four years,” says Milo Werner, a partner at the venture capital firm DCVC. “We’re at this amazing moment where we could actually rebuild Main Street America and bring back the industrial base.”

The move to bolster US manufacturing was fueled by a sense during the beginning of the pandemic that the country must regain the ability to make critical products and technologies. The decline of US manufacturing had become obvious. Federal support to rebuild the industrial base came in a series of bills passed during the Biden administration, including the CHIPS and Science Act and the climate bill.

At the same time, opportunities offered by artificial intelligence and automation breakthroughs have spurred an appetite for new investments among many manufacturers. Many of those technologies are just starting to be deployed, but they promise a way for US producers to finally become more competitive with those in low-wage economies.

If the Trump tariffs slow or even reverse such progress, the impact on the country’s economic and technological future could be devastating.

There are a lot of reasons to want a stronger US industrial base. But it’s not mainly about whether we have countless well-paying jobs for those with only a high school diploma and little technical training, despite what you will hear from many politicians. Those days are mostly long gone.

Manufacturing jobs account for a little under 10% of total jobs in the US. That percentage hasn’t changed much over the last few decades—nor is it likely to grow much in coming years even if manufacturing output increases, because automation and other advanced digital tools will likely cut into the demand for human workers.

Still, manufacturing is critical to the future of the US economy in other ways. The invention of new stuff and production processes greatly benefits from an intimate connection to manufacturing capabilities and expertise. In short, your chances of successfully creating a new type of battery or AI chip are much greater if you’re familiar with the intricacies of manufacturing such products.

It’s a lesson that was often forgotten in the 2000s as companies, led by such Silicon Valley giants as Apple, focused on design and marketing, leaving the production work to China and other countries. The strategy created huge profits but severely crimped the United States’ ability to move ahead with a next generation of technology. In 2010, Intel cofounder Andy Grove famously warned, “Abandoning today’s ‘commodity’ manufacturing can lock you out of tomorrow’s emerging industry.”

Prompted by such concerns, in 2011 I visited manufacturers across the country, from industrial giants like GE and Dow Chemical to startups with exciting new technologies, and wrote “Can We Build Tomorrow’s Breakthroughs?” Over the next few years, the answer to the headline’s question proved to be no. GE and Dow gave up on their most innovative manufacturing ventures in batteries and solar, while nearly none of the startups survived.

The US was great at inventing new stuff, it turns out, but lousy at making it.

The hope is that this situation is changing as the country builds up its manufacturing muscles. The stakes are particularly high. The value of producing strategic goods and their supply chains domestically—biomedicine, critical minerals, advanced semiconductors—is becoming obvious to both politicians and economists.

If we want to turn today’s scientific breakthroughs in energy, chips, drugs, and key military technologies such as drones into actual products, the US will need to once again be a manufacturing powerhouse.

Limited tariffs could help. That’s especially true, says DCVC’s Werner, in some strategically important areas marked by a history of unfair trade practices. Rare-earth magnets, which are found in everything from electric motors to drones to robots, are one example. “Decades ago, China flooded the US economy with low-cost magnets,” she says. “All our domestic magnet manufacturers went out of business.”

Now, she suggests, tariffs could provide short-term protection to US companies developing advanced manufacturing techniques to make those products, helping them compete with low-cost versions made in China. “You’re not going to be able to rely on tariffs forever, but it’s an example of the important role that tariffs could play,” she says.

Even Harvard’s Shih, who considers the sweeping Trump tariffs “crazy,” says that far more limited versions could be a useful tool in some circumstance to give temporary market protection to domestic manufacturers developing critical early-stage technologies. But, he adds, such tariffs need to be “very targeted” and quickly phased out.

For the successful use of tariffs, “you really have to understand how global trade and supply chains work,” Shih says. “And trust me, there is no evidence that these guys actually understand how it works.”

What’s really at stake when we talk about the country’s reindustrialization is our future pipeline of new technologies. The portfolio of technologies emerging from universities and startups in energy production and storage, materials, computing, and biomedicine has arguably never been richer. Meanwhile, AI and advanced robotics could soon transform our ability to manufacture these technologies and products.

The danger is that backward-looking policy choices geared toward a bygone era of manufacturing could destroy that promising progress.

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Blockchain could be headed for ‘ChatGPT moment’ in adoption: Citigroup

Regulatory changes could be the catalyst to spark significant adoption of stablecoins and blockchain tech in 2025, according to investment banking giant Citigroup.

“2025 has the potential to be blockchain’s ‘ChatGPT’ moment for adoption in the financial and public sector, driven by regulatory change,” a team of Citigroup financial analysts said in an April 23 report. 

A combination of growing regulatory support and adoption by financial institutions has set the stage for the stablecoin market cap to fly as high as $3.7 trillion by 2030, or in a base case, $1.6 trillion.

“The main catalyst for their greater acceptance may be regulatory clarity in the US, which could enable greater integration of stablecoins specifically, and blockchain more widely, into the existing financial system,” Citi said in its report. 

“The tailwinds of regulatory support and the increased integration of digital assets into incumbent financial institutions are setting the scene for increased usage of stablecoins.”

On the heels of US President Donald Trump’s crypto-friendly administration assuming power earlier this year, lawmakers are weighing stablecoin legislation, such as the GENIUS Act, which seeks to regulate US stablecoins, ensuring their legal use for payments. 

A US regulatory framework for stablecoin would also support demand for dollar risk-free assets inside and outside the US, according to the report. 

“The stablecoin issuers will have to buy US Treasuries, or comparable low risk assets, against each stablecoin as a measure of having safe underlying collateral,” Citi said. 

“Stablecoin issuers could hold more US Treasuries by 2030 than any single jurisdiction today.” 

Blockchain could be headed for ‘ChatGPT moment’ in adoption: Citigroup
Stablecoin issuers could have significant holdings of US Treasuries by 2030. Source: Citigroup 

US will continue to dominate stablecoins 

In the future, Citi predicts the stablecoin supply will remain US dollar-denominated, with non-US countries promoting national currency or a central bank digital currency.

In April, the stablecoin market cap had crossed $230 billion, an increase of 54% since last year, with Tether (USDT) and USDC (USDC) dominating 90% of the market. 

“While the dollar’s dominance may evolve over time, with the euro or other currencies being promoted by national regulations, stablecoins may be viewed by many non-US policy makers as an instrument of dollar hegemony,” Citi said. 

“Geopolitics remain fluid. Should the world continue to drift into a multi-polar system it is likely that policymakers in China and Europe will be keen to promote central bank digital currencies (CBDCs) or stablecoins issued in their own currency.” 

Related: Russia finance ministry official floats country making own stablecoins: Report

However, there are still some challenges ahead for the market. The stablecoin market cap could settle around $500 billion if “adoption and integration challenges persist.” 

Depegging has also been flagged as a potential issue, with 1,900 instances in 2023, according to Citi, including the major USDC depeg following the collapse of Silicon Valley Bank.

“A major depegging event would likely dampen crypto market liquidity, trigger automated liquidations, impair trading platforms’ ability to meet redemptions, and potentially have broader contagion effects for the financial system,” the firm said. 

Magazine: Ridiculous ‘Chinese Mint’ crypto scam, Japan dives into stablecoins: Asia Express

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