Bitcoin Breaks $110,000 to Set New Historical High, Stablecoin Bill Boosts Encryption Craze

This week, Bitcoin surged strongly driven by institutions, breaking through 110,000 USD on May 22nd, Pizza Day, creating a historical high. Ethereum and popular sectors such as AI and Meme also generally rose. In terms of regulation, the GENIUS bills in Hong Kong and the United States are laying out a framework for the stablecoin sector, leading to unusual movements in related DeFi assets. The Texas Senate passed the Bitcoin Reserve Bill, which is expected to make it the third state to establish an official Bitcoin reserve. Additionally, the Sui ecosystem project Cetus was hacked, resulting in a loss of 223 million USD, causing a brief collapse of the Sui ecosystem.

A certain well-known individual's family's USD1 stablecoin has become the market focus, and a trading platform has launched the USD1/USDT trading pair. With the advancement of the GENIUS Act, the narrative of stablecoin compliance is heating up. The integration of USD1 in the BSC and Tron ecosystems is driving a general price increase of related projects. Market trading volume has increased by 2.42%, investor confidence is high, and speculation centered around USD1 may dominate the short-term market trend. The DeFi and RWA projects in the BSC and Tron ecosystems are worth paying attention to.

1. USD1 Narrative

On May 22, a certain project announced an investment of $25,000 to purchase 636,961 $B coins to support the BUILDon team, encouraging them to use $USD1 as the base trading pair. As soon as the news broke, the $B token saw a daily increase of 7 times. Previously, the prices of tokens from projects like Lista and Sto, which had collaborated with this project, also rose. Subsequently, a trading platform launched USD1 and opened the USD1/USDT spot trading pair, establishing the market tone in the short to medium term as speculation on assets related to USD1.

1. Focus on a specific trading platform ecosystem

A certain trading platform is deeply bound to a well-known family, and both parties are very likely to sign relevant agreements in exchange for mutual benefits.

Layout Stablecoin

On May 20, the U.S. Senate passed a procedural motion, and the GENIUS stablecoin bill has entered the official review stage, marking an important step for compliant stablecoins. After the bill's passage, it is a huge benefit for the public chains and DeFi products in the crypto market.

A certain stablecoin giant's annual net profit exceeded $13 billion in the fourth quarter of 2024, and the group's stock price soared to over $20 billion, proving that the stablecoin direction has enormous profit potential. Many RWA and on-chain activities are based on this fundamental currency of stablecoins. The FDUSD supported by a certain trading platform has fallen into decline, while the platform's strategic development requires a stablecoin narrative, thus USD1 is the current suitable choice.

According to data statistics, USD1 currently has a market capitalization of 2.139B, primarily issued on the BSC chain. The USD1 Vault of the Lista DAO lending product Lista Lending has become the first application of USD1 on the BNB Chain.

StakeStone(STO), Lorenzo Protocol(BANK), Thena(THE), and Aster and other BSC ecosystem projects have performed well in the market under the hype of USD1.

2. Focus on the Tron ecosystem

A well-known individual invested $75 million through a cryptocurrency project, becoming the largest known individual investor and an advisor for the project. The project co-founder stated that USD1 will also be natively issued on the Tron chain.

Asset Target

TRON (TRX): A well-known individual founded the TRON project, whose native token TRX is the core asset of the TRON network, used for a decentralized content entertainment ecosystem.

As the GENIUS Stable Market Act enters the formal review stage, the narrative of stablecoin compliance is becoming increasingly mainstream. Notably, a certain stablecoin has issued $75.4 billion on Tron, while Ethereum ranks second with $62.1 billion issued. From this perspective, the stablecoin narrative battle is focused on Ethereum and Tron, but considering that a certain well-known figure is an advisor to a certain project, it cannot be ruled out that Tron is very likely to become one of the victorious parties in the stablecoin narrative.

JustLend(JST): JustLend is a token market protocol based on TRON, aimed at establishing a liquidity pool, with interest rates determined by an algorithm based on the supply and demand of TRON assets. As USD1 is highly likely to choose TRON as one of the main issuing public chains, the lending protocol JustLend will benefit from the increase in trading volume, improved liquidity, user growth, and increased profit opportunities brought by USD1, leading to a rise in JST prices.

SUN (SUN): SUN is the community governance and DeFi token of the TRON ecosystem, supporting liquidity mining and decentralized exchanges ( like SunSwap ). SUN collaborates with JustLend and USDD, also benefiting from the growth of the TRON ecosystem, but has a lower market cap and higher volatility.

2. GENIUS stablecoin Bill

1. Core content of the bill

Issuing Entity and Regulation

• Only approved issuers are allowed to issue payment stablecoins to U.S. users, including bank subsidiaries and federally or state-qualified non-bank issuers. ( State-level issuance is limited to $10 billion. ).
• The issuer can choose federal or state-level regulation, supervised by the corresponding agency. Large issuers with a market value exceeding $10 billion, such as (, need to accept direct supervision from the Federal Reserve System or OCC, while small issuers are regulated by the state.

Reserves and Disclosure

• Reserve assets must be held at a 1:1 ratio, such as US dollars or liquid assets, and stablecoin issuers must hold equivalent cash or short-term US Treasury bonds as reserves.
• Need to disclose the redemption policy, and disclose reserve details monthly.

Other Provisions

• Foreign issuers must meet specific conditions to offer stablecoins in the United States.
• Payments with stablecoins are not considered securities, and the issuing entity must comply with anti-money laundering regulations.

In the currently published version, it is clearly stated that large technology companies are restricted from issuing stablecoins: non-financial listed companies are prohibited from issuing stablecoins unless they meet strict standards for financial risk, consumer data privacy, and fair business practices, preventing certain large technology companies from issuing stablecoins and maintaining the separation between banks and businesses. It is also not difficult to understand why a certain asset management giant chose to sign a cooperation agreement with a certain stablecoin issuer, committing not to issue competitive USD payment stablecoins for four years, which to some extent helps them avoid strict regulation.

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) 2. stablecoin track

The entire stablecoin sector is the first to be affected by this legislation. Currently, the total market value of stablecoins has reached 245 billion USD, significantly up from 200 billion USD at the end of 2024, with predictions that it could reach 400 billion USD by 2025. This pie is definitely getting bigger. One stablecoin currently has a market value of about 143 billion USD, with a trading volume accounting for over 75%. Approximately 60% of its reserves are U.S. short-term Treasury bonds, which basically meet the requirements of the legislation. However, it faces strict regulatory restrictions in the U.S., and a stablecoin specifically for the U.S. market may be launched later. Another stablecoin, although only valued at 60 billion USD, complies with similar regulations in Europe and the U.S., is advancing its IPO process, and is closely collaborating with a certain exchange, thus the competition for the top spot continues. With the influx of various compliant stablecoins, market competition will become even more intense.

stablecoin/Fixed Income Segment

USDtb, developed by Ethena Labs, is a fully collateralized stablecoin with a current market value of approximately $1.4 billion. USDtb is backed by highly liquid assets such as BUIDL from a certain asset management giant and has been integrated into a lending platform, enhancing the liquidity of USD lending.

The GENIUS Act emphasizes that collateralized stablecoins must hold sufficient reserve assets, and the fully collateralized model of USDtb is highly consistent with this requirement. Compared to purely algorithmic stablecoins, the collateralized nature of USDtb makes it more compliant and stable under the regulatory framework.

Pendle Finance's business in stablecoins mainly focuses on yield tokenization, fixed income products, and optimizing the yields of stablecoin liquidity pools. By integrating with multiple protocols, it provides users with flexible yield management and fixed income solutions. The passage of the GENIUS stablecoin bill will enhance the market trust and adoption rate of stablecoins, directly benefiting Pendle's business growth, especially in the fixed income sector. The $PENDLE token, due to its core position in the platform, has short-term speculative and long-term growth potential.

Frax Finance, as a stablecoin issuer ### FRAX (, directly benefits from the regulatory clarity provided by the legislation. The legislation clarifies the definition and requirements for payment stablecoins. Although FRAX is a fractional algorithmic stablecoin, its partially collateralized characteristics may allow it to meet the reserve requirements of the legislation. However, the legislation excludes synthetic stablecoins, which could impose restrictions on the algorithmic aspect of FRAX. Frax Finance needs to adjust its model to comply with regulatory requirements, or it may face a loss of market share.

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) 3.Layer1

Public chains with high-frequency stablecoin use cases are also among the beneficiaries. Currently, the preferred options are between Ethereum, Solana, and Tron, which are the three largest public chains in the stablecoin market. However, due to the political background of USD1 being closely associated with BSC, BSC may also be one of the potential public chains. Consequently, RWA, PayFi, and DeFi products across various chains are also worth focusing on.

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