Key Highlights

• Invesco submitted an SEC application for the Invesco Stablecoin Reserves Onchain Fund
• The proposed fund targets cash and short-dated U.S. Treasury securities, complying with GENIUS Act standards
• Superstate, a blockchain technology provider, will serve as sub-transfer agent and tokenize fund shares
• Major financial institutions including BlackRock, State Street, Morgan Stanley, JPMorgan, and Goldman Sachs have introduced competing offerings
• Market analysts at Citigroup forecast the stablecoin sector could expand to $4 trillion within six years

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Invesco, managing approximately $2.5 trillion in assets, has submitted regulatory documents to the U.S. Securities and Exchange Commission for authorization to create a tokenized money market vehicle targeting the stablecoin reserve sector.

The proposed product, named the Invesco Stablecoin Reserves Onchain Fund, will allocate capital into cash instruments, short-duration U.S. Treasury securities, and repurchase agreements while preserving a constant $1 net asset value.

Invesco’s regulatory submission was dated June 24, 2026, with the anticipated effective date falling roughly 60 days following the filing.

Fund Structure and Strategic Purpose

The investment vehicle targets stablecoin issuers specifically. These entities create digital assets pegged to the U.S. dollar and require secure, highly liquid reserve holdings to back their tokens.

The GENIUS Act — federal legislation enacted during the previous summer establishing regulatory parameters for payment stablecoins — mandates that issuers maintain qualified assets as backing reserves. Invesco’s proposed fund is specifically structured to satisfy these regulatory obligations.

The vehicle will be classified as a government money market fund under Rule 2a-7 regulations, mirroring the framework recently adopted by State Street for its stablecoin reserve product.

Invesco plans to incorporate the fund into its Short-Term Investments Trust, a pre-existing Delaware statutory trust already managing similar money market investment vehicles.

Blockchain Technology Integration Through Superstate

Superstate, a blockchain infrastructure specialist, has been designated as the sub-transfer agent. The firm will handle tokenization of fund shares and oversee a blockchain-integrated shareholder record system.

According to regulatory documents, the fund will function on a public blockchain network, though the specific platform remains unnamed. Superstate has previously tokenized assets using Ethereum and Solana networks. While the SEC filing acknowledges risks associated with Ethereum, it makes no explicit reference to Solana.

This collaboration extends an existing relationship between Invesco and Superstate. During March 2026, Invesco assumed daily portfolio management responsibilities for Superstate’s $700 million tokenized U.S. Treasury fund, trading under the USTB ticker. That arrangement established Invesco as the inaugural third-party asset manager utilizing Superstate’s blockchain-powered FundOS infrastructure.

Intensifying Competition in Emerging Sector

Invesco’s entry comes amid rapidly intensifying competition. State Street introduced a comparable GENIUS-compliant product just last week. BlackRock, Morgan Stanley, BNY, JPMorgan, and Goldman Sachs have each rolled out similar offerings throughout recent months.

The stablecoin market presently totals approximately $300 billion. Citigroup forecasts potential expansion to $4 trillion by 2030, positioning stablecoin reserve management as a potentially substantial revenue opportunity for asset management firms.

Invesco now stands alongside BlackRock, Franklin Templeton, and Fidelity among prominent traditional asset managers advancing into tokenized money market products.

An Invesco representative indicated the company maintains a policy against commenting on products currently undergoing registration procedures.

Strategy (MSTR) is sitting on one of the largest unrealized losses in corporate history and it’s bigger than some of crypto’s most prominent projects.

The software-turned-bitcoin-treasury company holds roughly 844,000 BTC, acquired at an average price near $75,600, according to data source BitcoinTreasuries.net. With BTC trading near $60,000 as of writing, the mark-to-market hit exceeds $13 billion, which as per fair-value accounting rules, flows straight through the income statement, generating headline-grabbing quarterly losses.

To put that number in perspective: Strategy’s paper loss now surpasses the total market capitalization of dogecoin (around $11.5–12.7 billion), a long running memecoin project and behind Hyperliquid’s HYPE token, which hovers around $18 billion. HYPE is the ninth-largest digital asset globally and a top pick for many analysts and funds. They point to substantial upside potential as the decentralized platform has emerged as the preferred marketplace for trading not only cryptocurrencies but also assets tied to traditional finance.

Strategy’s paper loss is also bigger than the market caps of countless other DeFi, privacy, oracle projects such as Monero, Cardano, Chainlink, Bitcoin Cash, Litecoin, BlackRock’s BUIDL, Uniswap, Near Protocol, Aster and others.

Base, the blockchain backed by crypto exchange Coinbase, has returned online after the network suffered nearly a two-hour outage due to a consensus issue that halted block production.

Base posted to X on Thursday after the outage that the network’s blocks “are being produced normally, and we have verified widespread recovery in the ecosystem.”

Base’s status page said it was investigating “unhealthy” block production at 4:03 pm UTC on Thursday. At 5:21 pm UTC the team said it “isolated a consensus problem that caused an invalid block to be sequenced. This prevented new blocks from being created.”

Base said in an update just before 6 pm UTC that it had “recovered healthy blockbuilding” and that ecosystem-wide infrastructure was able to sync, adding it had identified the issue and would investigate the root cause and share a full post-mortem. 

The outage was a rare instance of downtime for a major blockchain like Base, the most used Ethereum layer-2 network, which last experienced a major outage in August 2025 when it went down for 33 minutes, according to its status page.

Source: Base Build

Base creator Jesse Pollack posted to X that all funds on the network are safe, “but a halt is not okay and we’ll use this to continue to level up base as a platform for global, 24/7 finance.”

Related: Coinbase lets users transfer stock portfolios as exchange expands beyond crypto

The downtime appeared to occur separately and just hours ahead of an upgrade for Base, dubbed Beryl, that was scheduled for 6 pm UTC and was completed two hours later at 8 pm UTC.

The update aimed to reduce delays on withdrawals and introduce a new token standard for real-world assets and stablecoins.

Layer-1 blockchain Sui experienced two periods of downtime on back-to-back days in May, each causing a temporary halt in block production. Sui later said the downtime was caused by a network update that it knew had a low probability of causing a halt.

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Tether stablecoin USDt has become the second-largest cryptocurrency by market capitalization as Ether fell to its lowest price of the year on Friday

Ether’s market capitalization dropped below $185 billion following a 5.2% price crash over 24 hours, sending the asset tumbling to $1,510 on Coinbase, according to TradingView. This allowed USDt, with a $186 billion market capitalization, to surpass the cryptocurrency. 

“[The] stablecoin overtake really highlights how the market still favors stability over ETH’s volatility right now,” Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Cointelegraph. 

The development reflects accelerating stablecoin growth, which currently represents almost 15% of the entire crypto market capitalization. Stablecoin supply contracted more than 30% in the last bear market, but they’re hitting record highs this time, wrote 21Shares on Thursday, adding:

“To us, that is the strongest evidence yet that stablecoins are one of crypto’s defining use cases – demand that no longer depends on the cycle.”

USDt flipped ETH in market capitalization. Source: CoinGecko

Alvin Kan, chief operating officer of Bitget Wallet, told Cointelegraph that the flip is a “notable milestone that highlights the explosive growth and dominance of stablecoins in today’s crypto ecosystem.”

“It demonstrates strong demand for reliable, liquid on- and off-ramps during periods of volatility, while serving as a reminder that ETH must continue delivering compelling utility and narrative momentum to maintain its position.” 

Kan said the development is positive for the broader market, as deeper stablecoin liquidity supports higher trading volumes and ecosystem innovation.

Related: Sharplink buys ETH after 8-month pause as token hits 2026 low

ETH prices are back at crucial support levels last visited in October 2023 and April 2025.

The Ethereum ecosystem has also faced internal changes recently, following several executive departures and a 20% workforce reduction at the Ethereum Foundation.

However, a new nonprofit organization called Ethlabs was launched this week by key EF developers and researchers and backed by Ether treasuries Bitmine and Sharplink. 

ETH prices are at a critical long-term support level. Source: TradingView

Not all are bearish  

Some have taken Ether’s decline as an opportunity.

Ether treasury company Sharplink bought the dip, making its first purchase in eight months, scooping up 5,000 ETH on Thursday. Bitmine, chaired by Tom Lee, has also been accumulating at these low prices, adding a further 76,881 ETH last week. 

Meanwhile, Circle’s USDC (USDC) also flipped Ripple’s XRP (XRP) in market capitalization as XRP fell back towards $1, its lowest level since November 2024, leaving XRP with a market capitalization of $64 billion compared with USDC’s $73.6 billion.

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Base, the blockchain developed by Coinbase, has resumed normal operations after an outage that lasted nearly two hours and stemmed from a consensus failure that prevented block production.

Base confirmed on Thursday that its blocks were once again being produced normally and that it had verified recovery across the broader ecosystem following the disruption. The incident was tracked publicly via Base’s status page, which first flagged unhealthy block production before later describing the specific consensus issue.

Key takeaways

• Base reported a near two-hour outage caused by a consensus problem that sequenced an invalid block and stopped new block creation.
• The network later restored “healthy blockbuilding,” and infrastructure across the ecosystem was able to sync again.
• Base said it had identified the issue and would investigate the underlying cause with a full post-mortem.
• The downtime was notable because Base is among the most widely used Ethereum layer-2 networks.
• An upgrade scheduled for shortly after the outage—Beryl—was completed hours later, after the incident.

Outage traced to consensus and invalid block sequencing

Base’s status page reported that the team was investigating “unhealthy” block production at 4:03 pm UTC on Thursday. Less than an hour later, Base said it had isolated a consensus problem in which an invalid block was sequenced. According to the status update, that sequence effectively halted block production, meaning no new blocks could be created during the period.

In a subsequent update just before 6 pm UTC, Base stated that it had recovered healthy blockbuilding, and that ecosystem-wide infrastructure had returned to a synced state. The team added that it had identified the issue and would continue investigating the root cause, promising a full post-mortem.

Base also posted the recovery status on X via its official account, saying blocks were being produced normally and that it had confirmed widespread recovery throughout the ecosystem.

Why Base downtime is noteworthy for Ethereum layer-2 users

While outages can happen across blockchain networks, a disruption of this nature is comparatively rare for major systems—particularly for networks that are heavily relied upon for daily activity. Base is described in the report as one of the most used Ethereum layer-2 networks.

Base previously experienced a significant outage in August 2025, when it went down for 33 minutes, as indicated in a separate incident recorded on its status page. The latest event therefore adds another high-visibility reliability test for users and operators who depend on Base for time-sensitive transactions and on-chain application workflows.

The reporting around the incident also emphasized that Base’s creator, Jesse Pollack, said funds on the network were safe. However, even when assets are not at risk, a halt in block production can affect confirmations, withdrawals, and the overall throughput that applications expect from a live network.

Timing around the Beryl upgrade

According to the report, the downtime appeared to occur separately and just hours ahead of a scheduled Base upgrade known as Beryl. The upgrade was set for 6 pm UTC and was reported as completed at 8 pm UTC, two hours later.

Base’s Beryl update was intended to reduce delays on withdrawals and introduce a new token standard for real-world assets and stablecoins. For users, those changes can directly influence how quickly funds move out of the system and how new tokenized products are represented on-chain. For infrastructure providers, upgrades also increase operational complexity—making it especially important that the network returned to healthy block production before or during the transition.

Wider reliability signals across competing networks

Base’s outage also fits into a broader pattern of occasional block-production stalls across large networks. The report points to Sui, which experienced two separate periods of downtime on back-to-back days in May, each causing a temporary block-production halt. Sui later stated that the downtime resulted from a network update it had assessed as having a low probability of causing a halt.

That detail matters because it highlights a recurring challenge in blockchain operations: even carefully planned upgrades can create unforeseen edge cases. In Base’s case, the immediate cause was described as a consensus problem that prevented block creation, and the team indicated it would investigate the root cause. Readers may want to watch whether Base’s post-mortem explains how the failure relates to network parameters, client behavior, or sequencing logic—and whether similar failure modes could recur.

What to watch next

Base says it has identified the issue and will publish a root-cause analysis. The key follow-up will be how the post-mortem explains the consensus failure and what safeguards are added to prevent invalid block sequencing and restore even more resilient block production—particularly around future upgrades like Beryl.

SharpLink has bought Ether for the first time in eight months as ETH traded near its lowest level of 2026. 

The latest move suggests the company may be restarting active accumulation after months of relying mainly on its existing treasury and staking rewards.

According to Lookonchain, a wallet linked to SharpLink received 5,000 ETH, worth about $7.85m, from FalconX. The on-chain tracker said SharpLink last received ETH from FalconX in October, when it bought about $78.3m worth of the token.

Treasury loss grows with ETH weakness

The purchase came as Ether fell to about $1,537 on Thursday, its lowest price this year. At the time of writing, Arkham’s SharpLink dashboard showed the company as one of the largest corporate holders of Ethereum-linked assets.

Lookonchain said SharpLink now holds 876,285 ETH, worth about $1.4b at current prices. The tracker also said the total includes 22,102 ETH earned from staking. Its average purchase price stands near $3,609, leaving the company with an unrealized loss of about $1.71b.

Russell entry may broaden ownership

The ETH purchase also comes before SharpLink’s expected entry into the Russell 2000 and Russell 3000 indexes. In a May announcement, the company said the index additions would take effect on June 29, after the latest FTSE Russell reconstitution.

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SharpLink CEO Joseph Chalom said the inclusion is “a meaningful validation” of the company’s ETH treasury strategy. He also said it could broaden SBET’s shareholder base and improve access to capital markets. Index inclusion does not remove market risk, but it can place the stock in more passive and active portfolios.

Ethereum catalysts remain mixed

Chalom previously named three possible catalysts for ETH: clearer U.S. crypto rules, a return of risk appetite and growth in tokenized real-world assets. The regulatory track remains active, with the CLARITY Act still moving through Congress. Risk appetite is less clear, as ETH and other crypto assets continue to trade under pressure.

Tokenization has continued to grow. Data from RWA.xyz shows tokenized real-world assets near yearly highs, with distributed asset value above $31b. That supports Chalom’s view that Ethereum could benefit from more financial assets moving on-chain.

As previously reported, Ethereum recently held near $1,600 as whales bought the dip. ETF outflows and weak open interest kept ETH under pressure, showing the market remains split between accumulation and caution.

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SharpLink is also no longer the largest public ETH treasury company. As crypto.news reported, BitMine bought another $90m in ETH and moved closer to its 5% ETH supply target. In a previous article, crypto.news discussed Ethereum research group Ethlabs, which has support from Joe Lubin, BitMine and SharpLink.

SharpLink’s latest buy places the company back in the market while ETH trades at weak levels. The key test is whether the purchase marks a new accumulation phase or a single treasury move before index entry.

South Korea’s Personal Information Protection Commission (PIPC) has ordered cryptocurrency exchange operator Bithumb to pay a $136,000 fine for violating personal information protection rules tied to cross-border data transfers. The decision underscores the legal expectations for consent and handling of personal data when crypto trading activities involve overseas counterparties.

In a notice issued on Thursday, the PIPC said its investigation found Bithumb transferred personal information overseas without separate consent from data subjects during processes related to “order book sharing” and “virtual asset transfer” with foreign exchanges. The regulator linked the conduct to Bithumb’s arrangements involving Tether (USDT) trading data and user information sharing with multiple overseas platforms.

Key takeaways

• PIPC imposed a $136,000 fine on Bithumb for breaches of South Korea’s personal data protection requirements involving overseas transfers.
• The regulator found Bithumb shared personal information with 13 overseas exchanges and also used overseas counterparties to facilitate order book sharing and virtual asset transfers.
• PIPC acknowledged an anti-money laundering rationale for providing certain information, but emphasized strict compliance for cross-border transfer and data-subject self-determination.
• The case highlights how crypto compliance programs must address privacy and consent alongside AML/KYC obligations.

PIPC’s findings: cross-border transfers and the consent requirement

According to the PIPC notice, the regulator’s review focused on how Bithumb conducted certain operational integrations with foreign trading venues. The PIPC stated that Bithumb transferred personal information overseas without obtaining separate consent from the data subjects in the context of order book sharing and virtual asset transfer workflows.

The decision cites order book sharing for USDT between September and November 2025, when Bithumb worked with BingX. The PIPC further noted that while Bithumb obtained consent to share data with Stellar, it still carried out overseas data sharing through additional channels.

The PIPC’s framing is important for compliance teams: even where an exchange can justify the need to share information for anti-money laundering purposes, regulators may still require that cross-border personal-data transfers meet the procedural and consent standards under South Korea’s Protection Act.

Why the decision matters for exchanges and compliance programs

For crypto firms operating internationally—or coordinating with overseas counterparties—this case illustrates a practical enforcement boundary between AML-related information sharing and privacy law obligations. The PIPC explicitly recognized the necessity of providing personal information for AML when transferring virtual assets to other exchanges. However, it concluded that, with respect to overseas transfer of personal information, exchanges must treat the issue as closely connected to individuals’ rights.

In practice, the compliance implication is that exchanges may need more granular consent management and documented procedures around cross-border data flows. That includes assessing whether existing consents cover each specific foreign transfer pathway, whether the scope aligns with the intended processing and recipients, and whether data-sharing arrangements reflect the “data subject’s right to self-determination” described in the notice.

This also raises operational questions for regulated market participants: privacy controls cannot be treated as a one-time onboarding step. Instead, they must be maintained as exchanges expand routing, liquidity sharing, or transfer mechanisms across borders.

Enforcement context: Bithumb under regulatory scrutiny

Bithumb is one of South Korea’s largest cryptocurrency exchanges and has faced intense regulatory attention. The exchange has previously been subject to actions by financial authorities over alleged violations of South Korea’s Financial Information Act. In March, the country’s financial regulator imposed a six-month suspension, but a court later reversed that decision in April.

More recently, reporting indicated that police conducted raids at Bithumb’s offices as part of an investigation related to alleged nepotism involving a South Korean lawmaker, adding to the broader compliance and governance scrutiny surrounding the firm.

While these matters span different regulatory regimes—personal data protection versus financial supervision and other enforcement areas—they collectively signal a risk that institutional stakeholders cannot separate privacy, market conduct, and governance issues in crypto oversight. For banks, payment firms, and institutional investors with exposure to crypto ecosystems, such enforcement patterns can affect counterparties’ compliance posture and the perceived robustness of their control environments.

Broader policy backdrop: tax changes and law enforcement coordination

South Korea’s crypto regulatory environment is also evolving through fiscal and public-safety measures. The Ministry of Finance confirmed in May that a 22% tax on cryptocurrency gains is scheduled to take effect beginning January 2027, after previous postponements. The change is likely to affect a large base of retail investors holding digital assets in the country.

In parallel, blockchain analytics and law enforcement coordination has moved forward. Chainalysis reported a memorandum of understanding with the Korean National Police Agency (KNPA) intended to enhance investigative capability within South Korea. The stated focus includes improving responses to crypto crime, including attacks linked to North Korea.

Taken together, these policy directions show that South Korean authorities are simultaneously strengthening compliance expectations for regulated entities and expanding domestic enforcement capacity. The Bithumb privacy fine fits within this wider trend: regulators are treating data protection and cross-border information handling as part of the overall integrity framework for crypto markets.

Closing perspective

The PIPC’s order against Bithumb highlights that exchanges must align their AML-driven information-sharing processes with privacy consent and cross-border transfer requirements. Compliance leaders should watch for how similar cases are handled in South Korea—particularly around data transfer scopes tied to liquidity/order book sharing—since enforcement could shape how crypto firms structure cross-border operational integrations.