Cryptocurrency

Paxos, the infrastructure provider for PayPal’s PYUSD stablecoin, mistakenly minted $300 trillion worth of PYUSD due to a “technical error.” The error, detected and rectified quickly, involved burning the excess tokens. While customer funds remained safe, the incident highlights critical questions about safeguards and operational protocols in stablecoin issuance. The event underscores the role of custodians and the importance of swift error correction in maintaining trust. This comes as stablecoins gain traction, increasing scrutiny of their resilience and regulatory compliance.

Citi plans to launch a cryptocurrency custody service in 2026, driven by regulatory clarity and client demand, according to a senior executive. This service aims to provide institutional clients with secure management of digital assets. Citi is also exploring stablecoins for use in regions with less developed banking infrastructure and has invested in stablecoin infrastructure firm BVNK. Other Wall Street firms, like JPMorgan and Bank of America, are also evaluating stablecoins, though approaches to crypto custody vary.

Qualigen Therapeutics (QLGN) will launch C10 Cryptocurrency Asset Treasury (DAT) purchases next week. The company has established USD settlement and crypto custody accounts, but has not yet purchased any virtual currencies. QLGN views the recent crypto pullback as a deleveraging event and plans an 80/20 passive/active allocation for CXC10. They will also expand hedging tools, pursue strategic M&A, and promote C10 private and ETF products to grow assets under management. Previous market volatility included $16B in liquidations and ~$200B wiped from market cap.

World Liberty Financial (WLF), a crypto venture linked to the Trump family, announced at Token2049 its plans to launch a debit card and explore tokenized commodities. CEO Zach Witkoff highlighted the debit card aiming to bridge crypto with traditional spending, and their active work on tokenizing assets like oil and timber. WLF also launched USD1, a stablecoin reportedly among the top five globally. Donald Trump Jr emphasized WLF’s independence, while Witkoff noted USD1’s potential to boost demand for U.S. Treasuries. The company plans to launch USD1 on the Aptos blockchain.

CoinShares, a leading European digital asset manager, has acquired Bastion Asset Management, a London-based, FCA-regulated alternative investment manager. This acquisition enhances CoinShares’ active management capabilities and aligns with its strategic goal of becoming a global leader in digital asset management. Bastion’s quantitative alpha investment approach and expertise will be integrated into CoinShares, facilitating the development of actively managed funds, particularly for the U.S. market, and strengthening CoinShares’ position as a comprehensive digital asset investment platform.

Upexi (UPXI) reported FY2025 revenue of $15.8M with a 67% gross margin, but a $13.7M net loss. However, its Solana (SOL) treasury surged to 2,018,419 SOL, a 174% increase. This boosted NAV to $433M, a 281% jump, with unrealized gains of $128M (up 1,300%). Staking generates ~$100K daily revenue at an 8% yield. Upexi has pivoted towards becoming a Solana treasury vehicle.

Tether is reportedly exploring a capital raise of $15-$20 billion through private placement, potentially valuing the stablecoin giant at $500 billion. This move would place Tether among the world’s most valuable private companies, rivaling OpenAI and SpaceX. The company aims to use the capital to diversify reserves, enhance transparency, and solidify its market dominance amid increasing regulatory scrutiny and competition. This comes as Tether expands its presence in the U.S. with a new stablecoin, USAT, targeting institutional clients. The outcome could reshape the stablecoin market.

Greenidge Generation Holdings Inc. (Nasdaq: GREE) sold its Columbus, Mississippi bitcoin mining facility to US Digital Mining Mississippi LLC on September 16, 2025, for $3.9 million. The sale reflects Greenidge’s strategic shift amid volatile cryptocurrency market conditions and declining bitcoin mining profitability. Analysts suggest it may signal industry consolidation. The facility’s infrastructure and power capacity are important factors for the new owner. Greenidge aims to streamline operations, potentially focusing on power generation and other datacenter applications.

Democratic lawmakers are scrutinizing David Sacks’ role as a special advisor to President Trump on crypto and AI, questioning his compliance with Special Government Employee (SGE) regulations, particularly the 130-day time limit. Senators Warren and Stansbury demand transparency regarding Sacks’s time in office, alleging potential conflicts of interest as the administration implements new crypto legislation. Critics worry Sacks’s private sector activities could unduly influence policy decisions, despite his disclosure of selling over $200 million in digital assets before assuming his role. The inquiry reflects broader concerns about ethical standards and potential regulatory capture.

Gemini Space Station shares surged up to 40% in its Nasdaq debut after raising $425 million in its IPO, exceeding expectations and valuing the company at $3.3 billion. The IPO signals growing confidence in the digital asset industry. Founded in 2014 by the Winklevoss brothers, Gemini has become a major crypto exchange, holding over $21 billion in assets. Despite reporting net losses, Gemini offers diverse services and the Winklevoss brothers remain bullish on Bitcoin, predicting it could reach $1 million and advocating for strategic regulation.