CV5 Capital Weekly Market Intelligence

In This Week’s Issue

• GENIUS Act Becomes Law: U.S. Sets Stablecoin Guardrails
• Crypto Market Surges Past $4 Trillion on Regulatory Clarity
• DeFi TVL Rebounds with Real Yield Strategies
• BlackRock Launches Tokenized Bond Fund on Base L2
• Hedge Funds Pivot to Volatility Plays in Crypto
• CV5 Capital Insight: Compliance and Custody in a Regulated Era

GENIUS Act Becomes Law: First U.S. Stablecoin Framework

On July 18, 2025, President Trump signed the GENIUS Act into law, establishing the first comprehensive federal framework for payment stablecoins.

Key Provisions:

• Only approved banks, credit unions, and non-banks may issue stablecoins
• Must maintain 1:1 reserves in USD or short-term Treasuries
• Monthly transparency on reserves, annual audits, and AML oversight
• Bans interest-bearing stablecoins in the U.S.

This regulatory clarity, part of an initiative dubbed “Crypto Week” also introduces the Clarity Act and the Anti-CBDC Surveillance State Act, further shaping the regulatory environment.

Crypto Markets Surge on Regulatory Certainty

Crypto markets reacted enthusiastically:

• Market cap topped $4 trillion, boosted by institutional confidence
• Bitcoin hit a new record near $123,000, currently hovering around $119K
• Ethereum, Solana, XRP, and Dogecoin saw gains of +3–8%, driven by renewed DeFi interest
• Crypto-linked equities (Coinbase, Circle, BitMine, etc.) jumped up to 12%

DeFi TVL Rebounds with Real Yield Opportunities

Total Value Locked (TVL) in DeFi has climbed to approximately $108 billion. Key drivers:

• Stablecoin yield strategies on networks like Base and Arbitrum (7–12% APR)
• Growth in RWA platforms attracting capital
• Manager interest in multi-chain stablecoin arbitrage and yield

CV5 Capital clients continue to leverage tokenized fund structures to access DeFi yields with institutional-grade governance.

BlackRock Launches Tokenized Bond Fund on Base

BlackRock debuted its first tokenized bond fund on the Base Layer 2 network, ushering in real-time NAV, compliance automation, and transfer restrictions on-chain. This milestone validates our thesis on TradFi–DeFi convergence.

Hedge Funds Target Crypto Volatility

Hedge fund managers are increasingly allocating toward crypto options and perpetuals:

• A 43% increase in volatility-focused fund launches in Q2 2025
• Using CV5’s platform for scalable fund formation

CV5 Capital Insight: Compliance Meets Custody

With a clear U.S. regulatory regime for stablecoins, our clients are prioritizing:

• Licensing for stablecoin issuance
• AML/KYC controls meeting GENIUS requirements
• Full custody and audit protocols ensuring compliance and fund integrity

Data Snapshot

Metric Value Bitcoin $119K (+1% WoW) Ethereum $3,783 (+3.5% WoW) Crypto Market Cap $4 Trillion DeFi TVL $108 B Top Stablecoin Yield 10–12% APR

On the Radar

• Final SEC/CFTC rulemakings under GENIUS Act
• Senate vote on the Clarity Act by September
• Upcoming guidance on Strategic Bitcoin Reserve
• DeFi’s next wave of upgrades and institutional integration

Ready to launch or evolve a fund in this new era?
CV5 Capital offers expert guidance from launching a regulated institutional digital asset fund seamlessly via CV5 Digital to structuring tokenized vehicles to ensuring operational and regulatory excellence.

‍

📩 Contact: [email protected]

‍🌐 Visit: www.cv5capital.io