Crypto Morning Report: Fed holds interest rates steady, Ondo Finance mentioned in White House report

Author: TechFlow

Yesterday's Market Dynamics

Fed holds rates steady for fifth consecutive meeting, in line with market expectations

According to Jinshi Data, the Federal Reserve has maintained interest rates unchanged for the fifth consecutive time.

The Fed kept its benchmark interest rate at 4.25%-4.50%, consistent with market expectations.

White House releases digital asset report; no substantive updates on Bitcoin reserve plans

According to Jinshi Data, the White House released its long-awaited digital asset report, which outlines a national strategy aimed at positioning the U.S. as a global leader in blockchain, cryptocurrency markets, and tokenized finance. While the report covers a broad range of digital asset policy areas, it provides no substantive update on government Bitcoin reserve plans—merely reiterating statements from President Trump’s January executive order, without outlining next steps or an implementation timeline.

The report stems from an executive order signed by President Trump in January, establishing an interagency working group on digital assets and emerging technologies such as artificial intelligence. This 166-page document was led by David Sacks, White House lead on cryptocurrency and AI affairs, and executive director Bo Hines, incorporating input from the Treasury Department, Commerce Department, SEC, and CFTC. It includes multiple proposals on regulatory streamlining, innovation support, and modernizing oversight.

Trump imposes additional 40% tariffs on Brazil and reaches trade deal with South Korea

According to Jinshi Data, the White House announced that Trump signed an executive order imposing an additional 40% tariff on Brazil, bringing the total tariff to 50%.

In addition, Trump stated that a trade agreement has been reached with South Korea, under which the U.S. will impose a 15% tariff on South Korean goods, while South Korea commits to investing $350 billion in the United States.

Hong Kong stablecoin holders must initially be verified; regulations may ease later

According to Caixin, the Hong Kong Monetary Authority (HKMA) will open applications for the first batch of stablecoin issuer licenses from August 1 to September 30, 2025, marking the formal implementation of Hong Kong's stablecoin regulation. All holders of compliant Hong Kong-issued stablecoins must undergo identity verification—effectively a real-name system—to strengthen anti-money laundering and combat financial crime risks. HKMA Assistant Chief Executive (Regulation and AML), Chan King-hung, noted this arrangement is stricter than the earlier "whitelist" proposal in the AML consultation paper, but rules could be relaxed if technology matures in the future.

OpenSea team: Airdrop criteria will consider user profiles

In response to community questions about token airdrop eligibility, OpenSea team member Adam Hollander responded on Discord that the team is evaluating users’ historical usage data and trading volumes across different years. While specific details cannot be committed to or disclosed at this stage, user profiles will be considered, including:

• Users who appeared during bull markets but never returned;

• New users who recently joined solely for mining;

• Early users (OGs) who have been here since the beginning, stayed through bear markets, and remain active today.

Hyperliquid: Service disruption due to traffic spike; affected users to be compensated

Hyperliquid announced on Discord that its API servers experienced significant traffic spikes between 14:10 and 14:47 UTC, causing delays in order processing. The platform has recently achieved record-high open interest and protocol revenue. The team emphasized this was not a hack or exploit—blockchain, consensus mechanisms, and HyperEVM were unaffected, and block production continued at normal rates.

Although API servers returned error responses during congestion, transactions were still sent to the mempool and eventually included in blocks. The platform stated it will announce an appropriate refund plan in the coming days. Affected users do not need to submit manual tickets; compensation will be handled automatically.

Ondo Finance mentioned in White House report; report highlights tokenized securities and stablecoins as pillars of future financial system

According to Ondo Finance, the project was included in the latest White House report issued by the Presidential Working Group on Digital Asset Markets. The report recognizes tokenized securities, stablecoins, and programmable settlement as critical components of the future financial system.

Ondo Finance stated it launched the first widely accessible tokenized U.S. Treasuries for global investors and built the first on-chain financial protocol designed to support permissioned tokenized securities and stablecoins. It recently introduced Ondo Chain, aiming to provide dedicated infrastructure for tokenized real-world assets and enable seamless integration between traditional and on-chain finance.

eToro considering launching its own blockchain; evaluation currently underway

According to Fortune magazine, eToro CEO Yoni Assia said in a recent interview that the company is exploring whether to launch its own blockchain and is currently assessing potential collaborations involving Layer 1 and Layer 2 solutions, or possibly launching an eToro sidechain. Assia declined to share specifics, only noting that a sidechain would be a logical choice if eToro decides to move part of its operations onto crypto rails. (Note: A sidechain is a lightweight blockchain built atop another blockchain.)

JPMorgan partners with Coinbase to offer crypto services to Chase customers

As disclosed by Eleanor Terrett, JPMorgan issued an official press release announcing a partnership with Coinbase to provide cryptocurrency purchasing services to Chase credit card customers. Under the plan, Chase customers will be able to fund their Coinbase accounts using credit cards. Additionally, by 2026, the bank will roll out direct bank-to-wallet transfers and allow Chase Ultimate Rewards points to be redeemed 1:1 for cryptocurrency—the first time a major bank rewards program supports crypto redemption.

Roundcoin raises $40 million in Series A2 funding, led by ZA International and others

According to an official announcement, Hong Kong-based fintech firm Roundcoin Technology (RD Technologies) has completed a $40 million Series A2 funding round. The round was co-led by ZA International (ZA Global), China Harbour International (CHI), Bright Venture, and Hivemind Capital. Other investors include Sequoia China (HSG), Eternal Digital Capital, Junsi Investment, and Guotai Junan International Private Equity Fund.

Roundcoin stated it will use the funds to enhance its platform capabilities in preparation for Hong Kong’s upcoming stablecoin licensing regime effective August 1, 2025. In addition, ZA Bank and Roundcoin have signed a strategic cooperation MOU to jointly explore compliant applications of stablecoins in financial services, including reserve asset custody and stablecoin distribution.

Kraken seeks to raise around $500 million at $15 billion valuation

According to The Information, cryptocurrency exchange Kraken is seeking to raise approximately $500 million at a $15 billion valuation.

Market Movements

Suggested Reading

Ethereum at Ten: The Evolution of Vitalik’s Thinking

This article traces the intellectual journey of Ethereum founder Vitalik Buterin over the past decade, from a technological idealist to a pragmatic builder. It explores Ethereum’s development, technical challenges, community governance, market volatility, and Vitalik’s evolving role in the crypto industry. He has shifted from tech utopianism toward a focus on social value and public governance, maintaining core Ethereum principles despite criticism and challenges.

Messari Report: Dissecting Arbitrum’s 2025 Roadmap – From Technology to Ecosystem Ignition

This article comprehensively analyzes Arbitrum’s development path in 2025, focusing on its technology stack, ecosystem expansion, governance model, and economic engine. Arbitrum has evolved from a single Layer-2 rollup into a diverse chain ecosystem, aspiring to become a “Digital Sovereign Nation.” ArbitrumDAO drives growth through on-chain governance and treasury management, while innovations like Stylus, BoLD, and Timeboost further enhance platform performance and application potential.

VISA Stablecoin Data Revealed: Average Spend $45, Small Transactions Account for 40% of Market

This article analyzes data from VISA’s stablecoin payments network. Retail payments account for only 0.6% of total transaction volume but represent about 40% of transaction count. The average transaction size on Visa’s network is $45, with retail transactions typically small and frequent. Around 80% of retail stablecoin transfers are settled in USDT, which sees widespread use in emerging markets, especially in cross-border payments. Stablecoin retail payments remain in early stages but hold significant growth potential.

Interview with Ethena Founder: USDe Rises to Top Three, $260M Buyback Launched—Where is ENA Headed?

This article details the rapid rise of Ethena and its stablecoin USDe in the cryptocurrency market, examining its unique market positioning, fundraising strategy, competitive advantages, and shifts in market dynamics. It also analyzes capital flows in crypto markets, basis trading dynamics, and the impact of the GENIUS Act.

How the Rich Get Richer in Crypto?

This article discusses how wealth accumulation in cryptocurrency centers on rational investing and long-term holding—not luck or gambling. Avoiding common investment pitfalls, practicing disciplined portfolio management, patience, discipline, and diversification are key.