Ecosystem Update June 2025
Introducing the June 2025 Ecosystem Update which highlights macro trends, market performance, regulatory shifts, institutional developments, adoption milestones, and portfolio highlights. As part of the report, a comprehensive Group Update section highlights key corporate achievements and strategic initiatives. In each section, we provide an overview of Advanced Blockchain AG and our portfolio companies' accomplishments from the past month, along with a look at what is to come.
Macro Overview
Source: Coingeko
June 2025 was rather stable for the crypto market, building on May’s notable gains. Macroeconomic conditions provided cautiously supportive tailwinds. In the U.S., inflation showed further signs of cooling, and the Federal Reserve kept interest rates unchanged in June, reinforcing expectations that rate cuts may arrive by late 2025 – historically a bullish scenario for risk assets. The Fed’s pause and stabilizing inflation strengthened Bitcoin’s appeal as a hedge, especially after the continuous decline in the dollar in the past 6 months, marking its worst year since 1973. Geopolitical newsflow was mixed: early June saw a brief bout of volatility from renewed Middle East tensions (sharp rhetoric between Israel and Iran), but markets quickly absorbed the shock. Overall, the investor risk appetite held firm. U.S. equity indices notched modest gains in June, creating a “risk-on” environment that benefitted crypto as confidence grew that monetary policy tightening was over.
On-chain metrics underscored this optimism for Bitcoin: in May, nearly 18,800 large BTC transactions (>$100K each) were recorded – the most since January – and exchange outflows accelerated, with big players moving BTC into long-term. This trend continued into June, signaling that many holders view the six-figure price regime as the “new normal” and are pulling supply off exchanges. Analysts noted that Bitcoin’s weekly uptrend stayed intact; at one point, BTC logged eight straight green weekly candles (the longest streak since 2021), reflecting strong momentum. Meanwhile, Bitcoin’s volatility moderated significantly – its annualized realized volatility fell below 40%. This combination of tightening supply and unusually low volatility sets the stage for potentially explosive moves later in the year if a fresh catalyst emerges.
Market Performance and Trends
Bitcoin Holds Six-Figure Support: Bitcoin opened June around $104,000, coming off its late-May record. Crucially, BTC quickly stabilized above the $100K level, confirming that what had been major resistance was now firm. Throughout June, Bitcoin traded roughly between $104K and $110K, with repeated tests of the ~$106K area finding eager buyerstokenpost.com. Mid-month, BTC nearly revisited $111K before minor profit-taking set in. By month’s end, it hovered near $108K up slightly from early June and maintaining about a +45% gain for Q2.
Ethereum’s Continued Strength: After its breakout in May, Ethereum extended its resurgence in early June. ETH climbed from the low $2,000 to approximately $2,870 during the first week, coming just shy of the key $3,000 level before encountering resistance. This marked Ethereum’s highest price of 2025 to date. Subsequent attempts to sustain above ~$2,700–$2,800 were met with profit-taking by traders. Consequently, ETH entered a consolidation phase for the rest of June, oscillating mostly between about $2,400 on the low end and $2,700 on the high end. Despite the stall in upward momentum, technicals remained bullish.
On the daily chart, Ethereum held inside an ascending channel, repeatedly finding support around $2,400 while struggling to break $2,800. Notably, each test of the $2,700–$2,800 resistance zone led to a rejection, but the overall structure didn’t break down – bulls defended support and maintained higher lows, indicating they were still in control. Momentum has cooled somewhat: the RSI indicator hovered around neutral (~50) in June, reflecting a lack of extreme conditions. Fundamentally, Ethereum’s outlook continued to improve. Notably, EIP-7251 within Pectra will raise the staking cap per validator from 32 ETH to 2,048 ETH. This change, which began testing on public testnets in June, could dramatically improve staking efficiency by allowing large holders to compound rewards under one validator and is expected to attract more institutional staking activity. Meanwhile, Ethereum’s Layer-2 ecosystem kept flourishing: total value locked (TVL) across Layer-2 networks hit new highs (industry estimates put L2 TVL above $50B, over +200% year-on-year), and notably, Coinbase’s Base L2 overtook some older networks in user activity by mid-2025.
Regulatory Developments
United States: In June, U.S. policymakers accelerated their push toward clear and accommodating rules for digital assets. In a landmark move, the U.S. Senate passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) on June 17 – the first federal bill to establish a comprehensive licensing framework for stablecoin issuers. The Senate approved the stablecoin bill with a bipartisan 68–30 vote signaling broad political support. The legislation would subject both bank and non-bank stablecoin issuers to prudential standards, mandate 1:1 reserve backing, require monthly disclosures, and put issuers under federal oversight. The GENIUS Act now heads to the House, where lawmakers are working on a companion bill (the House’s “STABLE Act”) to reconcile with the Senate version. If enacted, this law would firmly integrate stablecoins into the U.S. financial system under clear rules – a development expected to unleash significant innovation and institutional participation in the stablecoin space.
Congress also made progress on broader digital asset legislation. On June 10, the House Financial Services and Agriculture Committees jointly advanced the Digital Asset Market Clarity Act of 2025 (often called the CLARITY Act) with strong bipartisan votes. This proposed law aims to finally delineate the boundary between securities and commodities in crypto markets. It would clarify that certain “digital commodities” (essentially sufficiently decentralized crypto assets) are not securities by default, and it would split oversight of the industry between the SEC and CFTC in a more defined way. Lawmakers touted the CLARITY Act as a measure to “unleash innovation and ensure U.S. dominance in digital assets while protecting consumers.” If passed, it could resolve much of the ambiguity that has plagued U.S. crypto markets—especially around which tokens require SEC registration. Notably, the Act would explicitly exclude from the legal definition of security any digital asset sold as part of an investment contract once that asset is decentralized enough to be a “digital commodity.” The SEC would retain jurisdiction over the investment contracts themselves, but the underlying tokens could be treated as commodities under CFTC purview. This framework is modeled on earlier proposals like the 2024 FIT21 bill, and it represents a significant shift toward regulatory clarity.
At the regulatory agencies, the tone has turned more crypto-friendly under new leadership. SEC Chair Paul Atkins (who replaced Gary Gensler with the new administration in January) signaled a dramatic shift in approach. In early June, Chair Atkins revealed at an SEC crypto roundtable that he has directed SEC staff to develop a “conditional exemption” framework for digital asset projects – essentially an “innovation safe harbor” that would allow blockchain startups and DeFi protocols to launch products within a grace period or under certain conditions without full SEC registration. This concept, reminiscent of Commissioner Hester Peirce’s earlier safe harbor proposal, indicates the SEC is now actively looking to foster crypto innovation onshore (a stark contrast to the prior regime’s enforcement-heavy stance). Additionally, SEC staff on May 29 issued guidance clarifying that typical staking services on proof-of-stake networks do not necessarily constitute securities offerings. In other words, the SEC indicated that protocol-level staking rewards, in and of themselves, aren’t considered unregistered securities – a nuanced view that was welcomed by the industry. This suggests the SEC will not categorize ordinary staking or validating activity as a securities violation, providing relief to exchanges and providers that offer staking to U.S. customers.
Beyond the SEC, another notable policy shift came from the Department of Labor (DOL). On May 28, the DOL officially rescinded its 2022 guidance discouraging crypto in 401(k) retirement plans. The earlier guidance had urged “extreme care” and effectively put a chill on offering crypto investment options in 401(k)s. By revoking that bulletin, the Labor Department returned to a neutral stance – reaffirming that it neither endorses nor prohibits crypto in retirement plans. Labor Secretary Lori Chavez-DeRemer commented that decisions about plan investments “should be made by fiduciaries, not D.C. bureaucrats,” underscoring that the government isn’t going to single out crypto anymore. This opens the door for more employers and plans providers to consider including crypto (typically in the form of Bitcoin or ETH funds) as part of 401(k) lineups. Financial firms like Fidelity, which launched a Bitcoin 401(k) product last year, saw an uptick in interest in June after the DOL’s move, as financial advisors grew more comfortable discussing digital assets as a diversification option for retirement portfolios.
Perhaps the most striking sign of crypto’s regulatory normalization in the U.S. was the SEC’s changing stance on spot crypto ETFs. After years of rejecting spot Bitcoin ETF applications, 2025 saw a complete turnaround. The BlackRock iShares Bitcoin Trust – which launched in the spring – reportedly amassed over $72.5 billion in assets under management by mid-June, reflecting massive pent-up investor demand now flowing through traditional channels. The success of BlackRock’s product (as well as similar offerings by Fidelity and others) has prompted even non-traditional entrants to file ETF proposals. Notably, Trump Media & Technology Group (the company of former President Trump) filed with the SEC in June to list a new Bitcoin and Ethereum ETF on NYSE Arca. While it remains to be seen if that particular fund will be approved, the mere fact that a high-profile political figure’s company is seeking an ETF shows how mainstream crypto investing has become. Overall, in June, the U.S. projected a much more constructive regulatory tone: Congress actively crafting bipartisan legislation, regulators providing guidance and exemptions (rather than purely enforcement), and even a historically skeptical SEC allowing mainstream investment vehicles. This shift toward clarity and openness is rebuilding confidence that the U.S. intends to be a leading jurisdiction for crypto innovation, rather than ceding that ground to others.
United Kingdom: The U.K. pushed ahead in June with its fast-track plan to establish a comprehensive crypto regulatory framework, reinforcing the country’s ambitions to be a global crypto hub. Following HM Treasury’s proposals earlier in the year, the government in late May published draft legislation (the “Cryptoassets Order 2025”) to bring a wide array of crypto activities into the regulatory perimeter by amending the Financial Services and Markets Act (FSMA). This draft law – announced by the Chancellor of the Exchequer – explicitly extends U.K. financial regulations to cover crypto exchanges, brokers, custodians, and other services. Under the proposal, any firm serving U.K. customers in the crypto sector will have to meet the same standards for transparency, consumer protection, and operational resilience as traditional finance firms. Key activities to be regulated include stablecoin issuance, operating trading platforms, custody of crypto assets, crypto lending, and borrowing, arranging deals in crypto, and even crypto staking. In short, the U.K. plans to regulate crypto businesses similarly to their traditional finance counterparts, creating legal parity.
At the same time, the U.K.’s Financial Conduct Authority (FCA) has been fleshing out detailed rules. In early June, the FCA released a major consultation paper on stablecoins and crypto custody, seeking industry feedback on proposed issuance requirements and safeguarding standards. Another FCA consultation outlined a draft prudential regime for crypto firms – essentially capital and liquidity requirements for companies dealing in digital assets – to ensure they have sufficient financial buffers. These come on top of the FCA’s new consumer marketing rules (finalized in May), which will, later in 2025, require prominent risk warnings on crypto ads and even ban incentives like “refer-a-friend” bonuses for retail crypto promotions. The proactive, consultative approach by the FCA has been noted and appreciated by U.K. fintech companies, as it gives them a clear view of what full authorization will entail. Industry players in London remarked that regulators have been more engaged and receptive to input than ever, a sharp departure from the U.K.’s previously slow approach. Also in focus is the Bank of England’s ongoing exploration of a retail central bank digital currency (CBDC), nicknamed “Britcoin.” While no new CBDC decision was announced in June, officials did summarize feedback from a public consultation (which ran through the end of June), emphasizing that privacy and coexistence with cash are key public priorities for any digital pound design. The BoE and Treasury are expected to decide by year-end whether to proceed toward a pilot. Summing up the U.K.’s stance: the country is attempting to marry innovation with oversight, pushing to create clear, business-friendly crypto laws in hopes of attracting companies that are fleeing uncertainty elsewhere. The measures advanced in June should give crypto businesses confidence that by 2025, the U.K. will have one of the world’s most robust and well-defined legal frameworks for digital assets.
European Union: Europe spent June moving from rulemaking to implementation of its landmark crypto framework, Markets in Crypto-Assets (MiCA), which was adopted in 2023. Key provisions of MiCA began phasing in starting January 2025, and by mid-2025 many EU member states had started granting licenses under MiCA to crypto service providers. Indeed, the European Securities and Markets Authority (ESMA) noted that dozens of firms across the EU have already received authorization to operate as Crypto-Asset Service Providers (CASPs) under MiCA’s unified rules, as of June. This early wave of licensing indicates MiCA’s rollout is proceeding as planned and that exchanges and custodians in Europe are adapting to the new regime. Throughout June, EU-level regulators focused heavily on supervisory coordination. ESMA convened a working group with national regulators aimed at ensuring the consistent application of MiCA, covering practical matters like handling customer complaints, preventing market abuse, and standardizing disclosure forms for token issuers. The European Banking Authority (EBA), which will oversee stablecoin issuers under MiCA, also began drafting technical standards for stablecoin reserve management and custody, as required by the law.
Outside of MiCA itself, individual European countries advanced complementary crypto laws to fill in gaps. For example, in France, a new financial reform law (the DDADUE law, passed in May and taking effect in June) clarified the legal regime for using crypto assets as collateral, something MiCA leaves to national law. The DDADUE law explicitly permits the use of crypto-assets as collateral for financial obligations and establishes a framework for pledging crypto-assets under the French Financial Code. This means French businesses can confidently pledge cryptocurrencies in loans or contracts – a significant step in integrating crypto into traditional commerce. Such national initiatives illustrate how Europe is building a holistic environment around MiCA, addressing areas like commercial law that MiCA doesn’t cover. The EU also doubled down on fostering blockchain innovation. The European Commission in June announced additional grants for its European Blockchain Services Infrastructure (EBSI) projects – including pilots for decentralized digital identity and cross-border trade finance using blockchain – aligning with the EU’s strategy to embrace Web3 technology under a regulated umbrella. Finally, European Central Bank officials gave small updates on the digital euro project: the ECB’s prototyping phase (in which five companies built demo interfaces) concluded successfully in June, and the Governing Council remains on track to decide by October 2025 whether to move to a realization phase (essentially, to begin full development of a digital euro). If they green-light it, a retail digital euro could potentially launch by 2027. In summary, by mid-2025, the EU had solidified its position as a first-mover in comprehensive crypto regulation – MiCA is coming into effect and providing certainty to businesses and protection to consumers, while Europe simultaneously encourages blockchain innovation both publicly and privately. This balanced approach continues to make the EU an attractive environment for serious crypto enterprises.
Asia (South Korea, Hong Kong & beyond): Several leading Asian jurisdictions forged ahead with crypto-friendly regulatory developments in June. In South Korea, a sweeping set of new crypto rules (finalized by regulators in May) officially took effect on June 30. These rules significantly liberalize the Korean crypto market for institutions while imposing higher standards on exchanges to protect investors. As of June, licensed Korean exchanges and custodians are now permitted to handle customer crypto deposits more freely. For example, exchanges can legally hold custody of customer digital assets and even convert fees received in crypto into fiat (under certain limits) without violating the law. This change recognizes exchanges’ need to liquidate tokens earned as fees to cover operating costs while setting guardrails (such as daily sale caps and requiring use of a third-party platform for such sales) to prevent conflicts of interest. Moreover, South Korea lifted a long-standing ban on non-profits transacting in crypto: qualified charities, universities, and other non-profit entities can now accept and sell donated crypto under strict conditions. The rules stipulate that non-profits must have at least five years of audited operations and internal committees to vet donations, and they must immediately liquidate any crypto donations via approved exchanges. This change is expected to let Korean charities tap into crypto philanthropy (which had been effectively off-limits since 2017).
Korean regulators also tightened requirements in other areas. They introduced stricter token listing standards to discourage highly speculative or illiquid tokens: local exchanges are now required to de-list coins with extremely low volume or market cap and to set higher thresholds for listing new meme-coins (for instance, requiring a certain size of user base or transaction history). Additionally, authorities reinforced the rule that all exchange users must transact through verified real-name bank accounts, bolstering AML (anti-money laundering) compliance – this has been a requirement in Korea’s big exchanges for years, and June’s rules ensure it’s strictly enforced across the board. The net effect of these changes is that Korea is opening its doors to institutional crypto involvement under a well-regulated framework. In fact, by June several major Korean banks announced plans to launch crypto custody services later in 2025 now that the legal path is clear. Market analysts expect a wave of Korean institutional capital (from securities firms, asset managers, pension funds, etc.) to begin entering crypto markets in H2 2025 thanks to this new clarity.
In Hong Kong, the momentum from its 2023–2024 pro-crypto pivot continued. After the Hong Kong Monetary Authority (HKMA) and legislators passed a new Stablecoin Bill in late May, June was focused on implementation planning. The HKMA began drafting detailed guidelines for stablecoin issuers seeking a license under the forthcoming regime, covering requirements like capital adequacy and high-quality reserve assets. Industry sources indicate at least two major stablecoin companies (one Asia-based and one U.S.-based) have expressed intent to apply for a Hong Kong license once the framework goes live in 2024. Additionally, Hong Kong’s Securities and Futures Commission (SFC) reported that by June it had granted 12 licenses to virtual asset trading platforms, bringing the total number of licensed exchanges into double digits – in line with expectations. This includes several exchanges that launched services for retail investors starting June 1, when Hong Kong officially allowed licensed platforms to serve retail customers. Early results have been promising: one exchange noted thousands of new retail sign-ups in the first month, showing significant pent-up demand from Hong Kong residents for regulated crypto access. Hong Kong is also pressing forward with government-backed crypto adoption projects. The e-HKD (digital Hong Kong dollar) pilot, which began in May, saw thousands of citizens testing out wallets through June. Authorities reported enthusiastic feedback on use cases like programmable payments and tokenized deposits, bolstering the case for potentially rolling out a retail CBDC in the next couple of years.
Elsewhere in Asia, regulatory signals were broadly positive. Vietnam made headlines by announcing plans to fully legalize cryptocurrency use by 2026 as part of a national fintech growth strategy. Vietnam already has one of the world’s highest crypto adoption rates (around 27% of adults), and the government is now actively working on a legal framework to recognize and regulate crypto trading and possibly even payments. This move, revealed at a policy forum in June, could make Vietnam a Southeast Asian crypto hub and is notable given the country’s current lack of formal crypto laws. In Japan, new rules that were approved earlier in 2025 – which streamline the process for exchanges to list tokens and set clearer standards for stablecoins – edged closer to implementation. Japanese exchanges spent June preparing for looser token-listing guidelines that take effect in July, which will make it easier to list global crypto assets domestically without lengthy vetting. And in Singapore, officials from the Monetary Authority of Singapore (MAS) reiterated in June that they remain open to “responsible” stablecoin innovation, following the release of stablecoin regulatory guidelines earlier in the year. While Singapore has imposed stricter rules on retail crypto trading (like requiring investor knowledge tests and restricting leverage), it is simultaneously positioning to attract crypto liquidity providers and institutional investors by offering clarity – for example, new rules for single-currency pegged stablecoins will come into force by end-2025, giving issuers a clear path to authorization.
In summary, Asia’s major financial centers are embracing a model of “regulated openness.” South Korea and Hong Kong are permitting much broader crypto activity than before, but under comprehensive oversight to protect consumers. Other nations like Vietnam and Japan are crafting pro-innovation rules to stay competitive. This trend is cementing Asia as a critical region for the next phase of crypto adoption, and June’s developments reinforced that trajectory.
Global Adoption and Expansion
Mainstream Adoption Milestones: Global cryptocurrency adoption will reach new heights by mid-2025. A recent survey by Gemini found roughly 25% of adults in major economies owned crypto, and newer data in June suggested that figure has held or even grown. Several countries now far exceed that average. For example, nearly 32% of Nigerian adults and 27% of Vietnamese adults reportedly use or own crypto, making them world leaders in per-capita adoption. Other emerging markets like the Philippines, Turkey, and South Africa also boast self-reported crypto usage above 20% of their populations. This indicates that in many places, crypto is no longer niche – it’s becoming a common part of personal finance for a significant share of people, whether for remittances, savings, or day-to-day payments. Even in developed markets, the user base has broadened. In the U.S., it’s estimated that around 50 million people now own some form of crypto (over 15% of the population), with especially strong growth in the 18–30 age bracket. Europe saw an uptick as well, particularly in Southern European countries facing high youth unemployment – many young people are engaging in crypto investing, freelancing for crypto, or play-to-earn gaming as alternative income sources.
Additionally, the estimated number of crypto users worldwide hit a new peak of around 850 million by mid-2025. This puts the industry on track to potentially cross 1 billion global users in 2026. Such widespread adoption leads to more stability and legitimacy in the crypto market. It’s increasingly hard to imagine crypto “going to zero” or being just a fad when a significant fraction of the world’s population owns this asset class. We’re approaching a stage where crypto usage is common enough to be self-sustaining, much like the early internet around 1998–1999 when roughly a billion people got online.
Payments and Fintech Integration: The fusion of cryptocurrency with traditional payment channels made significant headway in June. Major payment processors and fintech companies expanded their crypto capabilities, blurring the line between fiat and digital money. For instance, Mastercard, in collaboration with crypto exchange Binance, rolled out a crypto prepaid card in Brazil in late June, which is one of Latin America’s largest markets for crypto. This card allows Brazilian users to seamlessly convert their crypto (BTC, ETH, USDT, and others) to local currency at the point of sale anywhere Mastercard is accepted. Brazil became the second country in Latin America to get the Binance card (after Argentina in 2022), and part of a broader roll-out – by 2025 Binance/Mastercard have launched similar crypto cards in over a dozen countries across Latin America and the Asia-Pacific. These crypto-linked cards have proven popular in regions with volatile currencies since they effectively let users spend stablecoins like USDC or USDT for everyday purchases – providing a de facto dollar substitute via familiar card networks. In fact, by June, the aggregate spending volume on Mastercard’s crypto cards reportedly crossed $1 billion since the program’s inception.
Robinhood has unveiled a major expansion into tokenized assets and crypto services. Users across over 30 EU and EEA countries can now trade more than 200 tokenized U.S. stocks and ETFs with 24/5 access, zero commissions, and dividend payouts. These tokens, initially on Arbitrum, will migrate to Robinhood’s own Layer 2 blockchain built for real-world assets. The company also plans to offer tokenized shares of private firms like SpaceX and OpenAI, aiming to scale its token offering into the thousands by year-end.
Additionally, Robinhood is rolling out new crypto features across the EU and U.S., including Ethereum and Solana staking, perpetual futures with up to 3x leverage, and advanced tools like smart routing, tax-lot tracking, and AI-powered investment insights. These moves mark Robinhood’s evolution toward a full-spectrum fintech platform rooted in blockchain infrastructure.
Not to be outdone, Visa has also been very active. In June, Visa announced the expansion of its USD Coin (USDC) stablecoin settlement pilot (first tested with Crypto.com back in 2023) to include several additional issuer banks in Europe. This means when those banks settle their daily card transaction obligations with Visa, they can now do so by simply sending USDC on the Ethereum blockchain to Visa’s treasury, instead of using the slow traditional SWIFT network. This allows near-instant, 24/7 settlements. Visa’s Head of Crypto highlighted that using public blockchain rails for settlement can make cross-border transactions more efficient, and he hinted this model could be extended to other stablecoins or even central bank digital currencies in the future.
Strategy (formerly MicroStrategy, U.S.), has issued debt and equity instruments to fund substantial Bitcoin purchases, effectively using Bitcoin as a treasury reserve currency. The rationale is straightforward: amplify returns by converting capital markets access into long-term BTC exposure, thereby creating shareholder value through a high-conviction macro bet.
At the center of Strategy’s approach is what it describes as the “Bitcoin Flywheel”—a self-reinforcing growth model designed to create compounding value. The process begins with raising capital (through bonds or share offerings) which is then used to purchase Bitcoin. As Bitcoin appreciates, so does the firm’s balance sheet, driving up its book value per share. This improved financial position often translates into higher investor confidence and stock performance, which in turn enables further capital raises under favorable terms. The cycle repeats, leveraging Bitcoin’s asymmetric return profile.
Since first adopting this approach in 2020, Strategy has raised over $7.5 billion through convertible bonds and equity issuance. As of June 2025, the company holds more than 592,000 BTC, valued at approximately $62 billion, making it the largest corporate holder of Bitcoin globally. In 2024 alone, the firm’s stock price rose more than 600%, propelling its market capitalization past the $100 billion mark.
This model, if executed with discipline and strategic foresight, illustrates how Bitcoin can serve not only as a store of value but also as a dynamic engine for corporate growth.
PayPal, which enabled in-app crypto buying and selling a couple of years ago, reported that May and June brought record volumes on its platform for crypto trades, as the market rally drew in retail buyers. More interestingly, PayPal revealed that over 60% of crypto holders on its platform have used crypto to make a purchase or send money at least once, up from around 50% a year prior. This indicates the growing utilitarian use of crypto through PayPal’s network. The company also expanded its crypto services internationally, bringing those features to select EU countries in June after obtaining the necessary license under MiCA’s provisions.
Not all public-sector moves were about CBDCs – some involved adopting crypto for government payments. Panama made progress on integrating crypto into its tax system. After passing a law in April to allow tax payments in crypto, the Panama City Council in June launched an online portal through which residents can pay certain municipal fees (like utilities and business licenses) in Bitcoin, Ether, or select stablecoins. Early uptake was modest but symbolic: within the first weeks, dozens of Panamanians paid city fees using crypto (the city converts it to dollars on the backend). The national government is closely watching this as it considers the broader implementation of the April crypto law countrywide. Similarly, Dubai (UAE) announced that starting in July, it will allow property and corporate registration fees to be paid in approved stablecoins, as part of a strategy to modernize public services and attract crypto wealth to the region. These examples illustrate a slow but steady incorporation of crypto and blockchain into government operations. Over time, such moves could familiarize millions more people with digital currencies in their daily lives, further blurring the line between “crypto” and traditional money.
Finally, crypto’s use for social and environmental impact is growing. The United Nations in June discussed how blockchain could aid climate finance, for example by transparently tracking carbon credits. The UN also announced a partnership to use the Stellar blockchain for distributing aid to Ukrainian refugees, converting digital vouchers into local currency for families in need. This follows similar successful trials by NGOs using crypto for fast disaster relief payments. Such initiatives reflect crypto’s increasing acceptance in humanitarian and non-profit sectors, where its speed and transparency can add value.
Taken together, June 2025 demonstrated an accelerating integration of crypto into everyday economic activity around the world. From a higher global user base to easier payment methods, to government acceptance and industry-specific solutions, digital assets are increasingly woven into the fabric of global commerce and finance. The trend is clear: crypto is moving from the periphery toward the mainstream.
Outlook
The overall outlook for the crypto market remains broadly optimistic, despite the expectation of continued short-term volatility following the rapid gains of recent months. Bitcoin’s ability to establish a firm foothold above the $100K milestone in May – and hold it through June – has significantly strengthened the bullish market structure. What was once a huge psychological barrier has now transformed into a support, giving bulls a strong foundation. Many analysts now foresee Bitcoin grinding higher in a “staircase” pattern over the coming quarters. More conservative estimates call for BTC to reach the $120K–$125K range by Q4 2025, in line with post-halving supply reduction effects and ongoing institutional inflows. More aggressive forecasts, citing analogies to previous cycles, suggest a possible overshoot toward ~$150K if a euphoric blow-off phase kicks towards the year-end. A key potential catalyst on the horizon is the SEC’s decisions on additional spot Bitcoin and Ethereum ETFs – dozens of applications (beyond those already approved) are pending into late summer. A wave of new ETF approvals could open the floodgates of retail demand via brokerage accounts and retirement plans.
Ethereum’s prospects look robust as well. With its major technical upgrades behind it and Layer-2 adoption booming, ETH is positioned for potentially outsized percentage gains if the bull cycle continues. Additionally, Ethereum’s narrative as a yield-bearing asset (thanks to staking rewards) is attracting more institutional interest; June saw the ETH staking participation rate hit ~22% of circulating supply, and more funds are talking about ETH in the same context as yield-generating traditional assets.
For the wider altcoin market, the picture is more mixed. So far in 2025, Bitcoin and a handful of large caps (like ETH) have led the market – a typical pattern in the early stages of crypto bull phases, where money first flows to the “blue chips.” As the cycle matures, we may see rotation into high-quality altcoins – projects with real use cases, revenues, or clear tokenomics. Especially now that regulatory clarity is improving (with clearer regulations on what constitutes security), some altcoins may benefit from newfound legitimacy. However, many lower-quality tokens might continue to lag or even fade away; the investor base has grown more discerning since the last cycle, and regulatory scrutiny means the kind of meme-coin mania we saw in 2021 is less likely to repeat at the same scale. In essence, the rising tide may not lift all boats equally – there will likely be differentiation, with the strongest projects greatly outperforming the pack.
In summary, the crypto market enters H2 2025 with cautious optimism. The foundations – technical, fundamental, and macro – appear aligned for potential continued growth. Bitcoin’s newfound status above six figures and Ethereum’s platform improvements give the two leaders a strong footing. The broader acceptance by institutions and regulators, as detailed in this report, has reduced existential risks for the asset class and opened new avenues of demand.
Group Update
In June 2025, the Advanced Blockchain team was actively engaged in several initiatives dedicated to both historical clean-up and ongoing portfolio initiatives. Below, we highlight key updates from the month:
Strategic BTC & ETH Reserves: ABAG has begun establishing a relatively small strategic reserve of blue-chip cryptocurrencies (Bitcoin and Ethereum) as part of its long-term treasury strategy. In Q2 2025 the company allocated surplus liquidity (from staking rewards, yield farming, and token unlocks) to acquire about 1.2 BTC (at an average price of ~$88,409) and 44 ETH (at ~$2,438 each). These purchases, totaling roughly $245,000 in current value, are intended to diversify and hedge the treasury against volatility in the company’s altcoin holdings. ABAG’s move to build a blue-chip token reserve reflects a conservative approach to risk management while preparing for long-term growth.
AGM Postponement: Due to the ongoing audit processes, the publication of ABAG’s FY2024 annual financial statements has been delayed, which in turn led to a postponement of the Annual General Meeting. The audited 2024 results for Advanced Blockchain AG are now expected to be published in the coming weeks (instead of mid-2025), and the AGM originally scheduled for August 19, 2025, will be rescheduled to a later date (likely by October 2025). This unfortunate delay was prompted by the extended audit of our key subsidiary (Incredulous Labs Ltd.), which must be completed (including forensic review of 2021–2024 finances) to ensure fully accurate consolidated statements. The Management team emphasizes that this decision, while unfortunate, was necessary to ensure high-quality, reliable reporting for our valued shareholders.
Comprehensive Bitcoin Reserve Strategy Update: ABAG’s analysis of establishing a Bitcoin strategic reserve (and related BTC-based products) remains in progress. This analysis is of utmost importance, as it also includes the potential risks and respective mitigation strategies from pursuing such a strategy, among other key components. Previously, the company anticipated concluding this initiative by June 2025; however, the timeline has been extended due to the intensive resources consumed in the historical cleanup of financial records. Significant efforts have been redirected toward finalizing multi-year audits and correcting past financials (covering 2021–2024) to provide a clean foundation. As a result, the final outcome and implementation of the Bitcoin reserve strategy – including potential BTC-focused investment products – will be shared once the financial cleanup is complete, likely in the coming months and ahead of the upcoming Annual Shareholders Meeting. The delay is a direct consequence of prioritizing thorough financial transparency and accuracy before launching new strategic initiatives.
Token Staking Rewards & Monetization: ABAG continues to leverage its token holdings to generate yield. Notably, the company’s locked stake in peaq (PEAQ) has been producing substantial staking rewards. These staking rewards (along with proceeds from token unlocks) have partly funded the new BTC/ETH reserve and other initiatives. In the first half of 2025, the group generated 1,289,353 PEAQ tokens through its staking activities.
Furthermore, to monetize the group-locked tokens without liquidating them at a substantial discount, ABAG is currently collaborating with a leading market maker to execute covered call options on select holdings. This options strategy – expected to be implemented in Q3 2025 – will generate additional cash or stablecoin inflows from the company’s token treasury. By executing covered call options on illiquid tokens, ABAG can extract value from its assets while avoiding the steep price discounts of offloading tokens via OTC deals. This approach reflects a proactive treasury management strategy to monetize illiquid assets and bolster the company’s financial liquidity heading into the second half of 2025.
Portfolio Update
Our portfolio companies achieved notable milestones in June, and we have been actively fostering synergies among them:
peaq: peaq in collaboration with Pulsar launched the world’s first Machine Economy Zone in the UAE. This is a new regulatory/innovation sandbox in Abu Dhabi and Dubai dedicated to “tokenized machines” and DePIN projects, effectively making the UAE a hub for machine‐powered economies. peaq also hosted the inaugural “Machine Economy Days” event in the UAE (bringing together government and industry leaders on machine-led infrastructure).
Furthermore, MachineX, the first Machine Economy decentralized exchange (DEX) on peaq, went live in June 2025. The DEX enables users to trade and provide liquidity, among other features.
Panoptic: Panoptic has been selected to participate in Uniswap’s latest incentive initiative aimed at accelerating the adoption of Uniswap v4 and Unichain. As part of this program, Liquidity Providers (LPs) and options traders on Panoptic will be eligible to earn UNI token rewards across select v4 markets.
The rewards—coordinated by Gauntlet and distributed on a bi-weekly basis—are tied to both the amount of liquidity provided and key metrics such as trading volume and time-in-range performance. For the current cycle, 440,997 UNI tokens (approximately $3.7 million) will be distributed, with further rounds to follow.
This program is designed to jumpstart liquidity on Uniswap v4, attract new users, and support the development of a more robust and sustainable decentralized finance (DeFi) ecosystem. We’re excited to see Panoptic’s role expand as Uniswap v4 gains traction and new liquidity incentives are deployed.
Contango: Contango V2 protocol has demonstrated consistent fee generation across multiple chains since its launch, with several weeks surpassing the 100%–150% APR thresholds. Despite fluctuations, fee levels have remained robust well into mid-2025, underscoring the protocol’s resilience, financial stability, and healthy usage. This sustained performance provides a stable basis for ongoing staking rewards, distributed in WBTC, ETH, and USDC.
Silencio: In early June, Silencio's team hosted a public AMA with environmental scientists to discuss noise as a public health crisis.
Silencio has been rapidly scaling, boasting over 1.1 million users in 235 countries, contributing >37 billion verified noise data points to date. Its open dataset is already integrated into enterprise platforms like Google Cloud, SAP Datasphere, and Databricks, making real‐time noise mapping available for urban planning and public health. Furthermore, Silencio’s noise-level data is currently used by Veraset, a leading provider of global mobility and location intelligence, to provide a richer environmental context to Fortune 500 companies, public agencies, and research institutions. These milestones underscore Silencio’s progress in building a global environmental data infrastructure (with a token $SLC powering the network).
XMAQUINA DAO: XMAQUINA launched its second Genesis Auction (the DEUS Pad v2) on June 24, 2025. This fundraising round follows a major UI/UX revamp and represents continued momentum in the robotics DePIN space. The June 2025 “DePAI Digest” blog highlighted that “this month saw CEOs from the top robotics companies… show where humanoids are already working,” reflecting XMAQUINA’s focus. The successful Genesis Auction Wave 2 will allocate new $DEUS tokens and fund ecosystem projects.
Talisman Wallet: Talisman rolled out several updates in June 2025. The Chrome extension/mobile wallet v2.12.2 was released on June 30, 2025 This update added features like a new VANA token swap integration and various bug fixes (improving Polkadot SDK v16 support, staking UI, etc.). In the prior weeks of June, it also shipped versions 2.11.0 and 2.11.1 with enhanced swaps and dry‑run transaction support. These iterative releases demonstrate Talisman’s steady development cadence and feature expansion.
Laconic Network: Laconic’s team confirmed in May 2025 that a mainnet launch was planned for late June 2025. Indeed, the genesis block was launched on June 18, 2025, with a set of validators and over 3.8M historical testnet blocks carried over, bootstrapping the network. This long‑awaited deployment means Laconic’s blockchain (an offshore hosting/data oracle platform) is now live and ready for real-world use, with tokenomics and other token-related information to be published during the course of Q3 2025.
In summary, June 2025 was a productive and pivotal month. On the macro level, the crypto market’s strength provided a favorable backdrop that boosted the value of our holdings and the opportunities for our projects. Within the company, we achieved milestones in operational rigor (advancing audits and consolidations), strategic pivots (initiating our BTC/ETH reserve), and in portfolio traction (peaq’s DEX, etc.). While challenges always remain (we are mindful of the heavy workload to finalize financial reporting), we feel confident and well-positioned to enter H2 2025. The macro winds are at our back, our portfolio companies are hitting new milestones, and internally we have taken steps to fortify our foundations from financial strength to strategic focus. We thank our shareholders and partners for their continued support and look forward to sharing further progress in the coming months.
Best regards,
Your Advanced Blockchain Team
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