Crypto News Round-Up — September 2025

This daily roundup covers major developments in the cryptocurrency space. Topics include new regulations, market infrastructure updates, and notable market events. Key highlights: the European Central Bank’s warning on stablecoins, U.S. Bancorp relaunching institutional crypto custody services, and a Trump-backed Bitcoin company’s debut on Nasdaq.

• ECB urges safeguards on foreign stablecoins
• US Bancorp revives institutional Bitcoin custody
• Trump-backed Bitcoin miner surges on Nasdaq debut
• Decentralized exchange suffers major exploit
• Payment networks explore stablecoin projects
• Wealth managers report record crypto demand

ECB urges safeguards on foreign stablecoins

European Central Bank President Christine Lagarde has urged EU regulators to impose strict safeguards on stablecoins issued outside the bloc (Reuters). She noted that the EU already has one of the world’s strictest crypto regulatory frameworks under its Markets in Crypto-Assets (MiCAR) regime, but warned that foreign stablecoins pose new liquidity risks. Lagarde emphasized the need for non-EU issuers to meet the same high standards as domestic stablecoin providers to avoid runs on reserves and protect financial stability (Reuters).

• Even with strict MiCAR rules, the ECB is concerned about foreign stablecoins circumventing EU safeguards (Reuters).
• Equal regulatory requirements aim to prevent destabilizing runs on domestic reserves in a crisis.
• Signals the need for international cooperation on crypto oversight to avoid arbitrage.

US Bancorp revives institutional Bitcoin custody

U.S. Bancorp (the parent of U.S. Bank) has announced that it is reviving its institutional cryptocurrency custody service (Reuters). Originally launched in 2021 and later paused, the service has returned with new features, including support for Bitcoin exchange-traded funds (ETFs). The bank is partnering with crypto firm NYDIG to provide secure custody for institutional clients such as asset managers. This move comes amid growing demand from large investors for regulated bitcoin storage solutions (Reuters).

• Marks a major bank re-engaging with crypto, highlighting broad institutional interest (Reuters).
• Integration of Bitcoin ETF support suggests anticipation of further regulatory approvals for crypto products.
• Leverages NYDIG’s expertise to meet client demand for secure crypto services.

Trump-backed Bitcoin miner surges on Nasdaq debut

A company called American Bitcoin, affiliated with U.S. President Donald Trump’s family, began trading on the Nasdaq under the ticker ABTC (AP). Its shares spiked more than 16% on their first day, closing around $8 per share (AP). The company, which mines and holds bitcoin, is backed by Trump’s sons and ties into the broader trend of politically-linked crypto ventures. The strong debut suggests investor enthusiasm for high-profile cryptocurrency projects (AP).

• The stock’s performance demonstrates mainstream investor appetite for crypto-related companies (AP).
• Highlights how political figures are leveraging the crypto rally for market impact.
• May influence other political and corporate actors to engage with cryptocurrency projects.

Decentralized exchange suffers major exploit

A decentralized finance (DeFi) exchange was hit by a large-scale exploit this week, resulting in an estimated $20 million in stolen assets (CoinDesk). Hackers took advantage of a smart-contract vulnerability to drain funds from the platform’s liquidity pools, forcing the exchange to halt operations and alert users. The affected DeFi project is working on measures to recover funds and patch the security flaw (CoinDesk).

• Highlights the persistent security risks in DeFi systems and undermines confidence in crypto security (CoinDesk).
• Reinforces the importance of rigorous security audits and insurance for crypto platforms.
• Such incidents, while costly, drive improvements in blockchain security practices.

Payment networks explore stablecoin projects

Major payment companies like Mastercard and Visa are reportedly exploring their own stablecoins to improve cross-border payments (Bloomberg). Industry sources say the firms are considering digital currencies pegged to fiat, which could streamline international remittances and lower transaction costs. This initiative reflects growing interest by traditional financial networks to integrate blockchain technology and offer faster settlement options (Bloomberg).

• Corporate stablecoins could bring crypto closer to mainstream finance by leveraging established payment rails (Bloomberg).
• Faster and cheaper cross-border transactions would benefit consumers and businesses worldwide.
• Signals that legacy financial firms view blockchain as a strategic priority.

Wealth managers report record crypto demand

Bloomberg also reports that major wealth management firms are seeing surging client interest in crypto investments. For example, one global bank’s offered Bitcoin fund drew over $1 billion from private clients last quarter (Bloomberg). According to reports, high-net-worth investors are increasingly viewing cryptocurrency as a new asset class for portfolio diversification. Banks are responding by expanding crypto offerings to meet this growing demand (Bloomberg).

• Shows growing mainstream demand for crypto access among retail and institutional clients (Bloomberg).
• Encourages financial service firms to develop new crypto investment products and services.
• Reflects a shift where Bitcoin and other digital assets are becoming part of traditional investment portfolios.

Remember that cryptocurrency markets remain highly volatile. This summary is for informational purposes only and not investment advice. Always do your own research (DYOR) before making any crypto-related decisions.

Bottom Line

In summary, these developments show a maturing crypto landscape. Regulators and central banks are tightening rules and advocating caution, even as traditional financial institutions re-engage with digital assets. Institutional demand continues to grow, seen in new custody services and strong investment flows, while the persistent risk of hacks underscores the need for robust security. Together, these stories highlight both the promise and challenges of cryptocurrency’s march toward mainstream acceptance.