US Attacks Iran as Stablecoins Proliferate Industries

Hi Reader,

Thanks for reading The BlockByte Weekly, where we summarise the key updates in crypto over the last week and provide our perspective on what you need to know as an investor.​
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Weekly Market Snapshot

• BTC: US $102,627 (~A$158,588) (-2.7%)
• Crypto Market Cap: US $3.1T (-3.7%)
• Gold: US $3,371/oz (-0.4%)
• S&P 500: 5,967 (-0.6%)
• ASX 200: 8,505 (-0.5%)
• 10-Year Treasury Yield: 4.37% (+0.1%)
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The Big 5 (Last 24 hours)

Executive Summary

Stealth bombers and a major US warship have moved to within striking distance of Iran. Online betting place, Polymarket, puts the odds of US military action at over 99% before Monday. As I wrote this sentence, the US has just attacked Iran across 3 nuclear sites.

Over the last week, the US senate passed the GENIUS Act. The bill which regulates the use of stablecoins is part of Trump's strategic plan to bring more of the crypto industry to America after years of lawfare by regulators. Shares of stablecoin issuer Circle have surged by 676% on the week.

The continued proliferation of stablecoins across both states and countries continues, with Wyoming choosing Aptos and Sei as its preferred blockchains for its stablecoin pilot program. Reports also note that Amazon, Walmart and Ant Group are considering the launch of their own stablecoin to reduce banking and card fees, which cost billions annually to merchants and consumers.
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Market Update

US Sends B2 Bombers Towards Iran, Are Markets About to Drop?

Earlier this week, A US warship has moved to within striking range of Iran’s Fordow nuclear facility. The warship carries B-2 bombers and 30,000 pound bunker-busting bombs, capable of striking targets 60 meters deep in the ground.

It's looking increasingly likely that the US will enter into conflict in the Middle East, joining Israel in its assault on Iran.

In a post shared by Vice President JD Vance, he notes that Iran had failed to stay within the threshold for enriching uranium (3.67%). Enrichment has been found as high as 60% and 84%.

Iran has also been evasive and non-compliant with ongoing inspections of its uranium facilities, exceeding the 300 kg stockpile limit.

Online betting place, Polymarket, is suggesting that the odds of US involvement in the Iran conflict are as high as 99% by Monday. As I wrote this sentence, the US has just attacked Iran across 3 nuclear sites.

Perhaps worth noting, if the US does get involved, this could impact markets negatively short-term, particularly altcoins which are more risk-on speculative. Longer-term, we think this makes Bitcoin more attractive as a neutral capital store of value.

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The US Passes GENIUS Stablecoin Act, Circle's Shares Soar, But Investors Should be Cautious

This week, the US senate passed the GENIUS Act, a bill which will legalise and regulate the use of stablecoins. The bill is expected to be approved by the House of Representatives before being signed into law.

For those not aware, the transaction volume of stablecoins in 2024 reached approximately US $27.6 trillion, surpassing the combined transaction volumes of Visa and Mastercard by 7.68%, according to a report by CEX.IO.

Shares in Circle (CRCL) which listed at US $31 a share on its IPO on the New York Stock Exchange have surged. Currently trading at US $240.6, that's a rise of 676% for the week.

For investors thinking about buying Circle shares now, it's worth noting that Cathie Wood's ARK also sold off US $243 million worth of Circle shares this week to take profits, so we would urge caution in chasing this run up.

ARK still remains the 8th largest shareholder of Circle however, with over US $750 million in shares, we're long-term bullish on this sector and companies prospects.

Wyoming Chooses Aptos and SEI for Stablecoin Project, Retail Giants Also Plan Stablecoin Launch

Wyoming has selected Aptos and Sei as top candidates for its Wyoming Stable Token (WYST) pilot program.

The state-backed stablecoin will generate revenue through interest on short-term US Treasury bonds held in reserve.

Aptos achieved the highest score of 32, tied with Solana, while Sei scored 30, surpassing Avalanche (27), Ethereum (26), and Base (25), based on metrics like transactions per second, fees, and finality.

The announcement is part of a growing trend towards stablecoins. Retail giants Amazon, Walmart, and Alibaba’s Ant Group are reportedly exploring USD- stablecoins to slash credit card and payment processing fees, potentially saving Amazon US hundreds of millions, if not billions annually.

These corporate-backed digital currencies could enable instant, borderless transactions, bypassing traditional banks and enhancing ecosystem control.

Visa and Mastercard shares dropped 5% and 4.7%, respectively.

Until next week,
James

James Brannan
Managing Director
BlockByte
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(+61) 412 393 634
​james@blockbyte.com.au​
​https://blockbyte.com.au/​

BlockByte does not provide financial advice. We provide a personalised brokerage service with tailored support, research and secure custody for investing in digital assets. Reach out to our team to discuss how we can help.

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