Appold Market Watch - Week ending 17 October 2025

Market Update & Industry News - Week ending 17 October 2025

🔷 BlackRock has redesigned its BlackRock Select Treasury-Based Liquidity Fund (BSTBL) to cater to the stablecoin issuer market. BlackRock announced that the money market fund is now compliant with the U.S. regulatory framework for stablecoins, the GENIUS Act, and will provide a secure reserve vehicle for companies behind US dollar-pegged stablecoins to store customer funds.

Appold View: By offering a compliant and institutional-grade reserve option, BlackRock is positioning itself at the centre of stablecoin infrastructure. This offering is likely to prove popular with stablecoin issuers seeking to leverage the credibility associated with the BlackRock brand. 

🔷 Citi plans to launch a service for digital assets custody in 2026, having reportedly had plans in development for the past two to three years. Citi intends to utilise both an in-house developed technology solution and partnerships with third parties to provide custody across a range of assets. However, it has yet to specify what assets will be covered.

Appold View: While Citi’s announcement is a significant indication of its intentions and interest in custody services, the lack of detail regarding asset scope, regulatory positioning, and partner selection suggests that this remains an early-stage commitment.

🔷 An internal technical error at PayPal's blockchain partner Paxos led to the accidental minting of $300 trillion worth of Paypal’s PYUSD stablecoins, an amount exceeding the world's GDP. Paxos confirmed that it had identified and burned the excess stablecoins and that customer funds were safe. 

Appold View: While swiftly resolved, Paxos’ error is highly embarrassing and underscores the operational fragility that exists within stablecoin infrastructure. It highlights the need for rigorous internal controls and real-time auditability in systems managing token issuance at scale.

🔷 The Office of the Comptroller of the Currency, the U.S. federal agency overseeing national banks, has granted Erebor Bank preliminary and conditional authority to form the first federally chartered, digital asset-focused bank. Once fully licensed, Erebor’s charter will permit lending, custody, and payments via digital-asset rails. 

Appold View: Approval for Erebor Bank is a major step toward regulated digital-asset banking in the U.S and a critical endorsement of the suitability of digital assets within traditional banking systems. 

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