Kraken to Delist USDT and Other Stablecoins

Hodl Topic, Febuary 2nd, 2025

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📈 Preview On Today’s News:

1. - Kraken to Delist USDT and Other Stablecoins

2. - New Jersey Man Convicted in Crypto-Fueled Fentanyl Trafficking Scheme 

3. - Cardano Founder Predicts Blockchain Market Surge to $20T 

Keep reading below for more!

Today’s News:

1)

Kraken to Delist USDT and Other Stablecoins

Kraken, a major crypto exchange, will delist Tether (USDT) and four other stablecoins—PayPal USD (PYUSD), Euro Tether (EURT), TrueUSD (TUSD), and TerraUSD (USDT)—for users in the European Economic Area (EEA) due to compliance with the EU’s Markets in Crypto-Assets (MiCA) regulations. The delisting process begins on February 13, 2025, when margin pairs for these assets will switch to “reduce-only” mode. By February 27, spot trading will be limited to “sell-only,” and new deposit addresses will no longer be created. All margin positions will be forcibly closed by March 17, and spot trading will cease on March 24. Any remaining holdings after March 31 will be automatically converted to a compliant stablecoin. Other exchanges, such as Crypto.com, are also adjusting to MiCA rules, with plans to delist USDT and nine other tokens in Europe by January 31, 2025.

• Kraken will phase out USDT and four other stablecoins in the EEA to comply with new MiCA regulations, with trading and deposits ending by March 31, 2025.

• Other exchanges, including Crypto.com, are also delisting stablecoins in Europe, signaling increased regulatory scrutiny in the region.

2)

New Jersey Man Convicted in Crypto-Fueled Fentanyl Trafficking Scheme 

A New Jersey jury has convicted 51-year-old William Panzera for his role in a fentanyl trafficking and money laundering operation that spanned six years. Panzera and his associates imported synthetic opioids from China and distributed them across New Jersey, disguising transactions using wire payments and cryptocurrency. Authorities say the group moved hundreds of thousands of dollars to overseas drug suppliers. The investigation, led by Homeland Security Investigations (HSI) with assistance from the FBI, IRS, and U.S. Customs, resulted in Panzera facing a minimum of ten years in prison, with the possibility of life imprisonment for drug trafficking and an additional 20 years for money laundering.

• William Panzera was convicted for a six-year fentanyl trafficking and crypto money laundering scheme, transferring illicit funds to overseas suppliers.

• Facing at least ten years in prison, Panzera’s case highlights the increasing use of cryptocurrency in organized crime and global narcotics trade.

3)

Cardano Founder Predicts Blockchain Market Surge to $20T 

The blockchain industry is set for massive growth, with its total market capitalization projected to rise from $3 trillion to between $10 trillion and $20 trillion. Cardano founder Charles Hoskinson attributes this expansion to the increasing adoption of tokenized real-world assets, including intellectual property, real estate, and securities. Institutional players like JPMorgan and Citigroup are investing heavily in blockchain solutions, while regulatory frameworks are becoming clearer, paving the way for mainstream adoption. However, challenges such as a lack of standardized protocols and interoperability between blockchain networks remain key hurdles to address.

• The blockchain market is expected to grow from $3T to $10T–$20T, driven by institutional adoption and tokenization of real-world assets.

• Despite the growth potential, the industry faces challenges like regulatory inconsistencies and a lack of standardization, which must be resolved for seamless adoption.

4)

El Salvador Accelerates Bitcoin Purchases Despite IMF Deal 

El Salvador continues to expand its Bitcoin (BTC) reserves, purchasing two additional BTC on February 1 as part of its national Bitcoin accumulation strategy. While the country typically acquires one BTC per day, recent purchases indicate an accelerated pace, with over 50 BTC added in the last 30 days. The nation's total holdings now stand at 6,055 BTC, valued at over $612 million. This comes despite a recent $1.4 billion agreement with the International Monetary Fund (IMF), which required El Salvador to make BTC payments voluntary, privatize the Chivo wallet, and limit government involvement in Bitcoin. However, officials reaffirm their commitment to BTC accumulation, with plans to ramp up purchases further in 2025.

• El Salvador has accelerated its Bitcoin accumulation, adding two BTC on February 1 and over 50 BTC in the last 30 days, bringing total holdings to 6,055 BTC.

• Despite an IMF deal requiring reduced government involvement in Bitcoin, officials maintain their commitment to BTC purchases and plan to increase accumulation in 2025.

5)

UBS Leverages ZKsync for Blockchain-Powered Gold Investments 

Switzerland’s largest bank, UBS, is expanding its blockchain adoption by integrating ZKsync Validium into its digital gold investment platform, UBS Key4 Gold. The move aims to enhance transaction speed, privacy, and scalability for retail investors while ensuring interoperability with financial systems. Originally built on UBS Gold Network, a permissioned blockchain, the shift to ZKsync Validium allows off-chain data storage, reducing congestion on Ethereum’s main network. With ZKsync targeting 10,000 transactions per second and transaction fees as low as $0.0001, the technology could drive institutional adoption of blockchain-based financial products. Additionally, privacy-preserving innovations like fully homomorphic encryption (FHE) may unlock up to $1 trillion in institutional capital by addressing concerns over data transparency.

• UBS is integrating ZKsync Validium into its digital gold platform to enhance speed, scalability, and privacy while reducing Ethereum network congestion.

• ZKsync's high-speed, low-fee blockchain solution, along with privacy-preserving technologies, could drive institutional adoption and unlock significant capital in the financial sector.

6)

SEC Grants Initial Approval for Bitwise Bitcoin-Ethereum ETF 

The U.S. Securities and Exchange Commission (SEC) has given accelerated approval to Bitwise Asset Management’s Bitcoin-Ethereum exchange-traded product (ETP), a key regulatory milestone that allows an exchange to list and trade the fund. However, before the ETF can officially launch, the SEC must approve its S-1 registration, the final step required for issuing new securities to the public. Bitwise’s ETF, first submitted in November 2024, provides exposure to both Bitcoin (83%) and Ethereum (17%) based on market capitalization. This marks the third joint Bitcoin-Ethereum ETF to receive regulatory approval and the first under the SEC’s new leadership, Acting Chair Mark Uyeda. With crypto ETF momentum building, firms like Canary Capital and Bitwise are expanding into new products, including proposals for Litecoin and Dogecoin ETFs.

• The SEC granted accelerated approval for Bitwise’s Bitcoin-Ethereum ETF, with final approval pending the S-1 registration.

• This marks the third joint Bitcoin-Ethereum ETF approval, and issuers are pushing for more crypto investment products, including Litecoin and Dogecoin ETFs.

7)

Senator Lummis Challenges US Marshals Over Seized Bitcoin Strategy 

Senator Cynthia Lummis has criticized the US Marshals Service for its handling of seized Bitcoin, particularly the 69,000 BTC confiscated from Silk Road. She raised concerns over the agency’s past auctions, which resulted in significant financial losses due to poor timing, including the sale of 140,000 BTC in 2017 at just $330 per coin—far below its current valuation of over $100,000 per coin. Lummis has proposed the BITCOIN Act, advocating for the creation of a national Bitcoin reserve, aiming to acquire 200,000 BTC annually until the US holds 1 million coins. Despite her demands for transparency, the US Marshals missed the deadline to respond, though a private briefing is reportedly scheduled. As the chair of the Senate Subcommittee on Digital Assets, Lummis continues pushing for strategic Bitcoin management aligned with national economic interests.

• Senator Lummis criticized past Bitcoin auctions by US Marshals, citing billions in missed value and advocating for a national Bitcoin reserve.

• The BITCOIN Act proposes acquiring 200,000 BTC annually, while Lummis demands greater transparency and accountability from federal agencies.

8)

Circle Expands USDC Supply on Solana to $6B Amid Crypto Surge 

Circle has minted an additional $250 million USDC on Solana, bringing the total supply of USDC on the network to $6 billion in 2025. This move comes as stablecoin demand surges, with Solana's total stablecoin supply reaching $11.1 billion in January after a 112% increase. USDC maintains its dominance in Solana’s stablecoin market, holding a 77% share and serving as a key asset for transactions and liquidity in decentralized applications. The stablecoin sector continues to grow, with the market capitalization rising to $223 billion in January 2025, driven by broader crypto market momentum.

• Circle minted $250M USDC on Solana, increasing its 2025 total to $6B as stablecoin demand and Solana’s supply surged.

• USDC holds a 77% share of Solana’s stablecoin market, reinforcing its role in decentralized transactions and liquidity.

9)

Tether Reports Record $13B Profit Amid Rising USDC Competition 

Tether posted a record $13 billion profit for 2024, driven by strong stablecoin demand and expanding financial assets, including $113 billion in US Treasury holdings. Despite its financial strength, USDT's market dominance declined to 65% as USDC gained traction, reaching a $52 billion market cap by the end of 2024. Tether also secured a digital asset license in El Salvador, strengthening its presence in Latin America. However, regulatory concerns and increasing competition from alternative stablecoins pose challenges to its market leadership.

• Tether reported a record $13 billion profit in 2024, with US Treasury holdings reaching $113 billion, reinforcing USDT's liquidity and stability.

• USDT's market dominance dropped to 65% as USDC grew to a $52 billion market cap, while Tether expanded into Latin America by securing a digital asset license in El Salvador.

10)

Wall Street Traders Shift Focus to Emerging Altcoins Over Binance Coin & Sui 

Veteran Wall Street traders turned crypto investors are steering away from Binance Coin (BNB) and Sui (SUI), citing regulatory risks and uncertain long-term potential. BNB faces increased scrutiny due to SEC investigations into Binance, raising concerns about its sustainability. Meanwhile, Sui, despite its high-speed blockchain and DeFi potential, has yet to prove lasting value retention. Instead, traders are eyeing up-and-coming projects like Remittix (RTX), which offers strong tokenomics, real-world utility, and a novel PayFi model designed to streamline crypto-to-fiat transactions. With partnerships aimed at competing with Stripe and Coinbase, Remittix is positioning itself as a major player in the evolving crypto landscape.

• BNB and SUI face skepticism due to regulatory scrutiny and concerns about long-term viability, prompting investors to seek alternatives.

• Remittix (RTX) is gaining traction as a promising altcoin, offering innovative payment solutions and strong growth potential in the crypto-to-fiat sector.