The first state to pass a BTC reserve, Antalpha's $300M hopes, plus...

In today’s newsletter, will PayPal’s stablecoin be able to keep up with the big boys? And a peak at Strategy’s Q1 results.

It’s about a 3 minute read. But before we dig in…

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SEC ends PayPal’s PYUSD probe

Paypal disclosed Tuesday that the US Securities & Exchange commission has concluded its 16-month investigation into PayPal’s USD-backed stablecoin, PYUSD, without taking any enforcement action. Initiated in November 2023, the probe sought documents related to PYUSD’s issuance and operations. Last week, PayPal announced it was expanding its stablecoins payments partnership with Coinbase.

OUR TAKE: PayPal is the king of Internet 1.0 commerce and ushered in the dollarization of the internet, now it sets its sights on Internet/Web 3.0 as the new era of digital dollarization commences. With the partnership, PayPal might have a chance to scale its stablecoin in a more substantive way (P.S watch this show on how stablecoin markets actually work!)

Paypal, while a titan across all other internet payments platforms, only has a small amount of stablecoin market share. PYUSD’s market capitalization stands at approximately $880 million, less than 1% of Tether’s $148.5 billion market cap. However, riding on the wave of stablecoin adoption, PYUSD has experienced growth in 2025, with a 75% increase in circulating supply since the beginning of the year. Total stablecoin transaction volumes surged  250% from $6.2T to $22T between 2023 and 2024, and today they account for roughly 50% of cumulative transaction volume of all crypto networks including Bitcoin and Ethereum

Trump and the current US administration continue to full-reverse the previous admin’s regulatory barriers and unfair targeting of crypto companies. We expect this to continue although it’s anyone’s guess when that Strategic Bitcoin Reserve (not stockpile!) might happen, if ever.

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MARA’s Anduro platform team proposes quantum computing mitigation scheme, Hourglass

The proposal would limit the speed at which a quantum exploiter could steal coins, hopefully giving the Bitcoin ecosystem time to react plus limit the rate at which an attacker could sell coins. Developers Hunter Beast and Michael Casey hope that this migration scheme would be preferable to a Bitcoin soft fork to “burn” or confiscate quantum vulnerable coins.— link

Strategy plans $21 billion expansion, posts $4.2B loss

Strategy (formerly MicroStrategy) reported a substantial Q1 loss of $4.2 billion, largely due to a $5.9 billion impairment on its extensive Bitcoin holdings. Unfased, the company announced it would raise another $21 billion through an equity offering to increase its Bitcoin reserve (currently 553,555 BTC). Strategy also upgraded its 2025 growth targets, forecasting a 25% Bitcoin yield and aiming for $15 billion in bitcoin-driven gains. — link

Tether Eyes $25 Million Stake in Upcoming Antalpha IPO

Tether, the issuer behind USDT—the world’s largest stablecoin with a market cap of approximately $146 billion—has shown interest in buying up to $25 million worth of shares in an upcoming initial public offering, according to SEC filings. — link