Top crypto news: EU digital euro, China stablecoins, bank custody, Gemini IPO, major DeFi hack

In mid-August, the cryptocurrency industry saw a wave of notable developments in policy, markets, and security. Key events include Europe accelerating its digital euro plans following new U.S. stablecoin legislation, major banks preparing crypto custody services, high-profile exchange IPO filings, and the persistent threat of DeFi exploits. Below is a summary of the week’s top crypto stories.

• EU Accelerates Digital Euro Plans After US Stablecoin Law
• China Considers Yuan-Backed Stablecoins
• Major Banks Plan Crypto Custody Services
• Gemini Exchange Files for IPO, Reports Wider Losses
• Eric Trump to Attend Tokyo Bitcoin Meeting
• DeFi Platform Hit by Major Hack

EU Accelerates Digital Euro Plans After US Stablecoin Law

European officials are speeding up plans to launch a digital euro in response to the recently enacted U.S. “Genius Act,” which regulates the roughly $288 billion stablecoin market. Financial Times reports that EU policymakers moved to expedite the digital euro project after concerns that U.S. stablecoin legislation could undermine the euro’s global competitiveness (Financial Times). With the U.S. setting rules for dollar-backed tokens, the EU is racing to ensure it remains at the forefront of digital currency innovation.

Why it matters:

• Faster development of a central bank digital currency (CBDC) could help the EU maintain control over its monetary policy and payments infrastructure.
• The U.S. stablecoin law has triggered a “crypto arms race,” pushing other governments to act on digital currency plans.
• Digital euro adoption could reduce reliance on private stablecoins and strengthen the euro’s role in global finance.

China Considers Yuan-Backed Stablecoins

According to Reuters, Chinese regulators are exploring the possibility of allowing yuan-backed stablecoins to boost the international use of China’s currency. The move would mark a significant shift from China’s 2021 cryptocurrency ban. Officials are reportedly discussing pilot projects for state-authorized stablecoins that could be used for cross-border payments and trade (Reuters). These yuan-backed tokens would still operate under capital controls, but could give China a new tool to increase the yuan’s global reach.

Why it matters:

• A Chinese stablecoin would signal a reversal of China’s previous restrictions and indicate a strategic push to enhance the yuan’s status.
• By pegging a digital token to the yuan, China could widen its influence in global transactions without fully abandoning capital controls.
• This development highlights the international competition for digital currency leadership, as the U.S. and EU push forward with their own initiatives.

Major Banks Plan Crypto Custody Services

Bloomberg News reports that leading global banks, including Citigroup and HSBC, are moving to offer cryptocurrency custody and trading services. These institutions are responding to growing client demand for digital asset investment, and plan to launch platforms where customers can buy, hold, or trade Bitcoin and other coins through the banking system. The plan includes building secure custody solutions and integrating stablecoin payments into traditional bank offerings (Bloomberg News).

Why it matters:

• The entry of major banks into crypto custody suggests increased institutional acceptance and access to cryptocurrency markets.
• Bank-supported crypto services could reduce risk for users by leveraging trusted custodians and regulatory oversight.
• This trend underscores that digital assets are moving into mainstream finance, potentially broadening their use among retail and corporate clients.

Gemini Exchange Files for IPO, Reports Wider Losses

Cryptocurrency exchange Gemini has publicly filed for a U.S. initial public offering, disclosing lower revenue and a wider net loss in its latest regulatory filing (Reuters). The Winklevoss twins’ crypto platform reported a sharp drop in trading volume in the first half of 2025, leading to revenues well below last year’s levels. The expanding losses highlight Gemini’s challenges in a cooling market as it seeks to attract IPO investors (Reuters).

Why it matters:

• Even well-known exchanges are showing financial strain, reflecting the broader market slowdown after last year’s crypto boom.
• Gemini’s mixed financials may dampen enthusiasm for other crypto companies considering public listings.
• The IPO filing gives transparency into exchange operations and risk factors, which could set expectations for others in the space.

Eric Trump to Attend Tokyo Bitcoin Meeting

Bloomberg News reported that Eric Trump, son of former President Donald Trump, is planning to visit Tokyo in early September to attend the shareholder meeting of Metaplanet (3350.T), a Japanese company that holds a significant Bitcoin reserve (Bloomberg News). Mr. Trump owns shares in the company and will speak to investors about its Bitcoin strategy. This high-profile visit underscores the connection between U.S. political figures and the global crypto sector.

Why it matters:

• The involvement of a prominent U.S. political family member highlights crypto’s continued mainstream appeal and influence.
• The trip signifies growing international interest, as individuals connected to Western politics engage directly with Asian cryptocurrency projects.
• This event may draw more political and media attention to Bitcoin, potentially impacting public opinion and future policy debates.

DeFi Platform Hit by Major Hack

Citing CoinDesk, security researchers reported that a vulnerability in a decentralized finance (DeFi) protocol was exploited this week, resulting in roughly $60 million being drained from the platform’s liquidity pools (CoinDesk). The attackers took advantage of a smart contract flaw before developers could patch the issue. The breach underscores ongoing cyber risks in the crypto space even as DeFi usage continues to grow.

Why it matters:

• Major hacks highlight that technical risks remain high in DeFi, even for platforms that appear secure.
• Such incidents may slow institutional adoption until stronger security audits and insurance mechanisms are in place.
• Investors are reminded of crypto’s volatility and the importance of due diligence when engaging with new protocols.

Crypto markets remain highly volatile. Past performance is no guarantee of future results. This article is for informational purposes only and should not be taken as investment advice. Always do your own research and consider the risks before investing.

Bottom Line

This week’s crypto headlines illustrate a rapidly evolving landscape. Governments and institutions around the world are accelerating digital currency initiatives, from Europe’s digital euro to China’s stablecoin plans. At the same time, traditional banks are preparing to support crypto, signaling growing mainstream involvement. However, high-profile hacks and financial losses serve as reminders of the market’s volatility and technical risks. Investors and observers should keep a close eye on these trends and exercise caution, as crypto’s fundamentals and regulations continue to change.