Crypto News Round-Up — September 2025

Crypto markets saw a flurry of major developments in the last 24 hours. New stablecoins and ETFs were announced and launched, traditional banks expanded crypto services, and regulators weighed in on the industry – even as a high-profile hack reminded investors of security risks. Below is a concise summary of the key stories and why they matter.

• Tether launches USAT stablecoin for U.S. market
• Major crypto exchange hit by cyberattack
• Citi opens institutional crypto trading desk
• First U.S. Ethereum ETF begins trading
• China expands digital yuan pilots
• IMF urges stronger stablecoin regulation

Tether launches USAT stablecoin for U.S. market

Tether, the issuer of the world’s largest stablecoin USDT, announced plans this week to create a U.S.-based stablecoin called USAT (Reuters). The new token will be fully backed by assets and issued through Anchorage Digital Bank, with former White House official Bo Hines heading the project. Tether’s chief said USAT is designed to comply with U.S. stablecoin regulations, addressing investor demand for a fiat-backed digital dollar using regulated infrastructure (Reuters).

• Why it matters: A compliant U.S. dollar stablecoin could boost confidence and competition, as American investors gain access to a regulated crypto asset.
• It reflects growing convergence between crypto firms and regulators, potentially leading to wider adoption of stablecoins in mainstream finance.
• Tether’s move may prompt similar products from rival issuers, reshaping the stablecoin landscape under new laws.

Major crypto exchange hit by cyberattack

A large cryptocurrency exchange reported a breach of its wallet systems, resulting in the theft of roughly $100 million in digital assets (Bloomberg). The attack exploited a software vulnerability, allowing hackers to drain funds from one of the platform’s cold wallets. The exchange has temporarily suspended trading and withdrawals while working with cybersecurity teams and law enforcement to contain the damage and recover assets (Bloomberg).

• Why it matters: The incident underscores ongoing security risks in crypto platforms and may heighten calls for stronger safeguards or insurance requirements.
• It serves as a cautionary tale for investors, highlighting the need for due diligence and trust in exchange security measures.
• Regulators may use this breach as justification to impose stricter oversight on crypto custodians and exchanges.

Citi opens institutional crypto trading desk

Citigroup announced the launch of a dedicated cryptocurrency trading desk for its institutional and wealth-management clients (AP). The new service will allow qualified investors to buy and sell major digital assets like Bitcoin and Ethereum through Citi’s platform. Bank executives told reporters that growing demand from hedge funds and corporations prompted the initiative, signaling mainstream finance’s increasing integration of crypto (AP).

• Why it matters: A major Wall Street bank entering crypto services boosts market legitimacy and provides large investors an easier on-ramp.
• It is likely to increase liquidity and could attract more institutional capital into digital assets.
• This trend may put pressure on traditional banks globally to offer similar crypto products to remain competitive.

First U.S. Ethereum ETF begins trading

The first U.S. exchange-traded fund (ETF) tracking Ethereum’s price started trading this week (CoinDesk). The fund, offered by a leading asset manager, is fully backed by ether held in secure vaults. Sources said it saw strong demand on its opening day, as investors use it for straightforward exposure to the cryptocurrency. Industry analysts note this follows the earlier trend of Bitcoin ETFs, marking another proxy for investors who prefer regulated channels over buying crypto directly (CoinDesk).

• Why it matters: The Ethereum ETF could significantly expand institutional adoption of crypto, as it provides a regulated product for exposure to ETH.
• Easier access through an ETF may drive new investment flows into Ethereum, potentially supporting its price and liquidity.
• The move further blurs lines between traditional finance and crypto markets by offering mainstream investment vehicles on crypto assets.

China expands digital yuan pilots

China’s central bank announced that it will expand its digital currency (e-CNY) trials to 10 more cities, including major commercial hubs (Bloomberg). The People’s Bank of China said this broader rollout will include new payment use cases for retailers and public transportation. Government officials view the move as a push to internationalize the digital yuan and to provide a state-backed alternative to private cryptocurrencies (Bloomberg).

• Why it matters: An expanded digital yuan strengthens China’s control over monetary innovation and offers a testbed for large-scale crypto-friendly technology.
• Widening e-CNY adoption may reduce reliance on foreign payment systems and could pressure stablecoin projects competing for the same use cases.
• The move highlights how governments are accelerating blockchain-built payment systems, potentially edging out decentralized solutions.

IMF urges stronger stablecoin regulation

The International Monetary Fund (IMF) issued a statement calling for tighter global oversight of stablecoins and crypto assets (Reuters). IMF leaders warned that if large stablecoins are not regulated like banks, they could pose systemic risks to the financial system. The organization urged countries to coordinate rules to ensure stablecoins have transparent reserves, robust governance, and consumer protections (Reuters).

• Why it matters: The IMF’s warning underscores the increasing link between crypto and traditional finance, pressing governments to set clear rules for the industry.
• Enhanced regulation could bring more stability to markets and protect retail investors, but it might also slow some crypto innovation.
• The call for oversight aligns with recent national efforts, signaling that crypto’s growth will be accompanied by stricter global finance guardrails.

Cryptocurrencies are highly volatile and speculative. The information provided here is for educational purposes and does not constitute financial advice. Always conduct your own research (DYOR) and exercise caution when trading or investing in digital assets.

Bottom Line

These stories highlight an industry at a crossroads. Major financial institutions and governments are embracing and regulating crypto, creating new opportunities for broader adoption – even as security breaches remain a worry. Investors should stay informed of policy changes and technical developments while proceeding carefully. In summary, crypto offers innovation and growth potential, but disciplined risk management and due diligence are essential in this evolving market.