Weekly Blockchain Blog – November 17, 2025 - Fin Tech

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In this issue:

Banks Explore Tokenized Deposits, Launch Crypto Trading; $YLDS on Solana

Two major global banks recently announced they are "exploring the development of an interoperability framework to enable tokenised value transfers between both banks' on-chain ecosystems." According to a press release, "The framework aims to enable the seamless exchangeability and settlement of tokenised deposits across both public and permissioned blockchains, with the aim to set a new standard for the industry." The press release further notes that the initiative "will potentially allow the combined institutional client base of Southeast Asia's and the United States' largest bank respectively to pay each other, and exchange or redeem their tokenised deposits across either banks' platform, across borders with real-time round-the-clock availability."

In other news, a major U.S. bank recently announced that it has "become the first and only nationally chartered ... insured bank to offer crypto trading to consumers on a platform built with bank-grade safety and stability." According to a press release, the bank's new crypto offering will allow its customers "to buy, sell, and hold dozens of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), on a platform built for both first-time and experienced crypto investors and users."

In a final development, Figure Technology Solutions Inc. announced that its subsidiary, Figure Certificate Company, intends to begin minting its $YLDS token on the Solana blockchain. According to a press release, "$YLDS is a security-version of stablecoin, designed to maintain a fixed dollar price and provide a continuous yield backed by U.S. Treasuries and Treasury repo agreements." The press release notes that "Exponent Finance, a decentralized finance yield exchange platform on Solana, intends to be the first user of $YLDS."

For more information, please refer to the following links:

US Digital Asset and Financial Services Companies Announce Partnerships

By Jonathan Cardenas

A major global cryptocurrency exchange recently announced the launch of a strategic partnership with a fintech-focused Canadian mortgage broker network. The partnership is intended to enable the fintech company to utilize the exchange's digital asset custody platform to store and stake the fintech company's holdings of the Injective (INJ) token with a view toward enticing participation from institutional clients. According to a statement, the fintech company recently completed its first acquisition of the INJ token under the initiative, which marks the launch of its planned $100 million INJ digital asset treasury strategy program.

In other news, a major global investment bank and a global hedge fund administrator have announced the completion of the first transaction executed on the investment bank's in-house blockchain-based platform. According to a press release, the platform is designed to transform the servicing of alternative investment funds by enabling "real-time tri-party settlement between fund managers, transfer agents and distributors" on the investment bank's in-house private permissioned blockchain network. The platform is expected to more fully roll out in early 2026.

In a final development, a major U.S. cryptocurrency exchange and a leading U.S. alternative asset manager have announced the launch of a strategic partnership to develop stablecoin credit strategies. According to a press release, the partnership is designed to serve as a bridge between the traditional private credit lending market and the tokenization and stablecoin ecosystems. The partnership will reportedly bring several stablecoin credit strategies to market in 2026 including, but not limited to, tokenized credit holdings, direct lending to stablecoin issuers and fintech companies, and lending against tokenized investment products.

For more information, please refer to the following links:

Digital Asset Firms and Banks Publish Comments on GENIUS Act

By Robert A. Musiala Jr.

According to reports, the U.S. Department of the Treasury (Treasury) recently received roughly 400 comment letters in response to its advance notice of proposed rulemaking soliciting public comment on questions relating to the implementation of the GENIUS Act (the Act). Many of the letters reportedly address the question of whether third parties, such as crypto exchanges, should be allowed under the GENIUS Act to offer "rewards" or interest on stablecoins held by the third parties on behalf of their customers. While the GENIUS Act prohibits stablecoin issuers from offering interest on stablecoins, the Act's language does not address interest offered by non-issuers.

Multiple crypto exchanges and advocacy groups published comment letters expressing their view that third parties should be allowed to offer yields on stablecoins. In opposition, a coalition of five bank industry advocacy organizations published a letter arguing that Congress's intent in the GENIUS Act was to broadly prohibit interest on stablecoins, whether the interest was paid directly by an issuer or indirectly by an issuer's affiliates or partners. The issue is likely to be determined by forthcoming regulations issued by Treasury to implement the Act.

For more information, please refer to the following links:

IRS Issues Safe Harbor for Trusts Engaged in Digital Asset Staking

By Keith R. Murphy, Robert A. Musiala Jr.

The U.S. Internal Revenue Service recently issued Revenue Procedure (Rev. Proc.) 2025-31, which "describes a safe harbor for trusts that otherwise qualify as investment trusts under § 301.7701-4(c) and as grantor trusts to stake their digital assets without jeopardizing their tax status as investment trusts and grantor trusts for Federal income tax purposes." The safe harbor is available for qualified trusts that meet 14 detailed requirements as set forth in Rev. Proc. 2025-31. Some of the key requirements include the following:

Interests in the trust are traded on a national securities exchange, and its disclosures regarding staking are approved by the U.S. Securities and Exchange Commission (SEC);
The trust owns only cash and units of a single proof-of-stake asset;
The trust's digital assets are held and controlled by a custodian, and only the custodian has access to the associated private keys;
The trust's digital asset activities are limited to (i) accepting deposits of the digital asset or cash in exchange for trust interests; (ii) holding the digital assets and cash; (iii) paying expenses and selling digital assets for cash to pay expenses or to make cash redemptions; (iv) purchasing additional digital assets with cash; (v) distributing digital assets or cash to trust interest holders as redemptions; (vi) selling digital assets for cash for the trust's liquidation; and (vii) directing staking of its digital assets consistent with requirements of the national securities exchange on which the trust interests are traded and Rev. Proc. 2025-31;
The trust directs the digital staking through one or more custodians who facilitate the staking on the trust's behalf with one or more staking providers;
The trust has no right to direct or control the staking provider;
With certain exceptions, all of the trust's digital assets are staked at all times;
The trust's digital assets are indemnified from staking provider slashing; and
The only new assets received from staking are additional digital assets of the same single type of digital asset held by the trust.

Rev. Proc. 2025-31 also provides a nine-month period, which began on Nov. 10, for an existing trust to amend its governing instrument (trust agreement) to adopt the requirements of the safe harbor. Revenue Procedure 2025-31 is effective for tax years ending on or after Nov. 10.

For more information, please refer to the following links:

SEC Chair Provides Details on 'Project Crypto' Approach to Digital Assets

By Amos Kim

In a recent speech, the chair of the U.S. Securities and Exchange Commission, Paul S. Atkins, provided details on the SEC's Project Crypto initiative, describing it as an effort to build a coherent regulatory framework for digital assets. The speech outlined the core principles guiding the project, including technology neutrality, market integrity and investor protection. According to Chair Atkins, regulation should focus on the economic reality of an activity, not the specific technology used to conduct it.

Chair Atkins emphasized the need for "A Coherent Token Taxonomy," stating that a one-size-fits-all approach that treats all digital assets as securities is hindering innovation. He advocated for a clear classification system that distinguishes between four categories of crypto assets: (i) "digital commodities" or "network tokens," which are intrinsically linked to and derive their value from a programmatic operation of a crypto system that is "functional" and "decentralized"; (ii) "digital collectibles," which are designed to be collected and/or used and may represent or convey rights to artwork, music, videos, trading cards, in-game items, or digital representations or references to internet memes, characters, current events, or trends; (iii) "digital tools," which are crypto assets that perform a practical function, such as a membership, ticket, credential, title instrument or identity badge; and (iv) "tokenized securities," which represent the ownership of a financial instrument enumerated in the definition of "security" that is maintained on a crypto network. According to Chair Atkins' speech, only the fourth category is securities.

In the speech, Chair Atkins also noted that a nonsecurity crypto asset may separate from an investment contract (which is one type of security) if "the issuer either fulfills the representations or promises, fails to satisfy them, or they otherwise terminate." Chair Atkins also said, "In the coming months, as contemplated in legislation currently before Congress, I hope that the Commission will also consider a package of exemptions to create a tailored offering regime for crypto assets that are part of or subject to an investment contract."

The speech called for tailored rulemaking for digital assets rather than "a web of enforcement actions." Chair Atkins said that existing SEC frameworks must be adapted to fit the unique structure of decentralized networks. He also highlighted the importance of interagency coordination with bodies like the CFTC and the need for rules that support the tokenization of real-world assets.

For more information, please refer to the following link:

The Securities and Exchange Commission's Approach to Digital Assets: Inside "Project Crypto"

DOJ Announces Crypto Scam Center Strike Force to Combat Pig Butchering

By Robert A. Musiala Jr.

The U.S. Department of Justice (DOJ) recently announced "the creation of the first District of Columbia Scam Center Strike Force to secure America against Southeast Asian cryptocurrency-related fraud and scams." According to a DOJ press release, these scams, known as "pig butchering" schemes, are often run out of scam compounds in Southeast Asia where workers "often are victims of human trafficking, held against their will, abused, and guarded by armed groups as they are instructed to target Americans." The DOJ press release notes that pig-butchering scams defraud Americans of nearly $10 billion per year. According to the press release, the Strike Force is already up and running; its Crypto Seizure team has seized and forfeited $401,657,274.33 in cryptocurrency from these schemes and is focused on recovering stolen funds and returning them to victims.

For more information, please refer to the following link:

New Scam Center Strike Force Battles Southeast Asian Crypto Investment Fraud Targeting Americans

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Weekly Blockchain Blog – November 17, 2025

Contributor

In this issue:

Banks Explore Tokenized Deposits, Launch Crypto Trading; $YLDS on Solana

US Digital Asset and Financial Services Companies Announce Partnerships

Digital Asset Firms and Banks Publish Comments on GENIUS Act

IRS Issues Safe Harbor for Trusts Engaged in Digital Asset Staking

SEC Chair Provides Details on 'Project Crypto' Approach to Digital Assets

DOJ Announces Crypto Scam Center Strike Force to Combat Pig Butchering

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