Appold Market Watch - Week ending 22 August 2025
Market Update & Industry News - Week ending 22 August 2025
🔷 State Street has become the first third-party custodian on J.P. Morgan’s blockchain platform, Kinexys, anchoring a $100m tokenised commercial paper issuance by Singapore’s OCBC. The move allows clients to hold digital debt in on-chain wallets with traditional servicing preserved.
Appold View: Custodians are critical to blockchain ecosystems, making JPMorgan’s integration of a third-party custodian on Kinexys a notable step toward adoption. However, history warns against one bank imposing its own standard; Citi’s MARTI failed, where Swift succeeded. Therefore, Kinexys’ success will hinge on openness: an inclusive model could attract adoption, while a closed one risks prompting competitors.
🔷 Singapore’s largest bank, DBS Bank, has launched crypto-linked structured notes on Ethereum, tokenised into $1,000 units, and distributed via ADDX, DigiFT and HydraX. While offering greater accessibility and liquidity to investors, trading remains permissioned to whitelisted wallets. DBS aims to expand to equity and credit-linked notes, highlighting both the promise and constraints of bank-led tokenisation.
Appold View: Cutting the minimum denomination to $1,000 marks progress toward broader access, but whitelisting restricts participation and highlights unresolved regulation. Issuing on Ethereum, however, points to DBS’s longer-term ambition; today permissioned, but with potential to open fully in future.
🔷 EU officials are expediting digital euro development after the US passed the “Genius Act,” regulating the $288bn stablecoin market dominated by dollar-backed tokens. Concerns over Europe’s autonomy have prompted debate on using public blockchains such as Ethereum or Solana, though privacy issues remain unresolved.
Appold View: The EU’s acceleration carries shades of FOMO. As the U.S. sets clearer blockchain rules, other regulators feel pressure to respond with their own frameworks or risk being left behind.
🔷 Gemini has secured a Markets in Crypto Assets (MiCA) licence from the Malta Financial Services Authority, enabling services in 30+ European jurisdictions under the EU’s framework. The move follows its MiFID II licence in May and launch of tokenised stocks, reinforcing Gemini’s compliance-first approach and paving the way for derivatives. The Winklevoss-backed exchange is also preparing for a public listing with major banks appointed as lead bookrunners.
Appold View: Gemini’s MiCA licence is less about one exchange and more about Europe’s crypto market maturing. By embedding early in a unified framework, Gemini positions itself to capture flows as they shift to regulated venues. The real story is timing: firms that align early with MiCA will gain first-mover advantage as the EU codifies rules.
#Marketwatch #Blockchain #Investments
