Treasury Strategies, ETH’s $4K Breakthrough, and Regulatory Shifts Shape the Week

This week’s headlines span market moves and regulatory shifts. Trump-affiliated World Liberty Financial is raising $1.5B for a WLFI treasury company, while ETH broke $4K for the first time since December amid treasury accumulation and ETF inflows. Animoca, Standard Chartered, and HKT launched a stablecoin licensing bid in Hong Kong, and President Trump signed an executive order to end “unfair debanking” of crypto firms. Tether invested in MiCA-licensed Bit2Me to expand in Europe and Latin America.

Trump-affiliated World Liberty Financial seeks $1.5B for WLFI treasury company

World Liberty Financial, the DeFi project backed by the Trump family, is aiming to raise $1.5 billion for a publicly traded treasury company that would hold WLFI tokens, according to Bloomberg and Fortune. Discussions with tech and crypto investors are said to be “advancing rapidly,” with Eric Trump and Donald Trump Jr. expected to join the board. The new entity would add WLFI to the growing list of digital asset treasury companies, which already include corporate vehicles for bitcoin, ether, and niche tokens.

The project has quietly built a diversified crypto portfolio, holding nearly $55 million worth of Ethereum (some staked), $19 million in wrapped bitcoin, close to $14 million in Tron, and multi-million-dollar allocations in EOS, Mantle, Ondo, and others, per Arkham data. These holdings reflect an accumulation strategy that has extended beyond WLFI’s own ecosystem, mirroring a broader trend where corporate treasuries diversify across multiple chains.

WLFI tokens are not yet tradable but are set to unlock for early backers following a near-unanimous community vote in July. The release schedule for the remainder of the 100 billion total supply will be decided in a future vote. Alongside the token launch, the project plans to distribute points to users of its USD1 stablecoin. President Trump’s role as “co-founder emeritus”has drawn criticism from opponents citing conflict-of-interest concerns.

Ethereum hits $4,000 for first time since December

Ether (ETH) briefly topped $4,000 on Friday, reaching $4,013.67 before paring gains, marking its highest level since Dec. 16. The rally comes after months of underperformance against bitcoin, with ETH gaining 90% versus BTC since April 21 but still trailing on a year-to-date basis. ETH remains about 18% below its all-time high of $4,867 from November 2021.

A key driver has been the rapid rise of Ethereum treasury companies, which are replicating bitcoin-treasury strategies for the proof-of-stake network. Leading holders include Tom Lee’s BitMine with over 833,000 ETH ($3.3B), Joe Lubin’s SharpLink with nearly 522,000 ETH ($2.1B), and The Ether Machine with more than 345,000 ETH ($1.4B). Standard Chartered analysts see potential for these firms to 10x their holdings to 10% of ETH’s total supply over time.

ETF inflows are reinforcing the momentum. U.S. spot Ethereum ETFs have added nearly $5B in the last month alone, outpacing Bitcoin ETFs over the same period. The network’s fundamentals are also strong, with a record 1.74M daily transactions this week. Market participants are watching for possible SEC approval to add staking to U.S. spot ETFs, which could act as a further catalyst.

Animoca, Standard Chartered, and HKT launch stablecoin licensing push in Hong Kong

Animoca Brands, Standard Chartered, and Hong Kong Telecommunications (HKT) have formed a joint venture, Anchorpoint Financial, to pursue a fiat-backed stablecoin issuer license in Hong Kong. The company filed its formal notice of interest with the Hong Kong Monetary Authority (HKMA) on Aug. 1, the first required step under the city’s newly enacted Stablecoins Ordinance.

The move is part of a broader strategy to explore the issuance of a HKD-backed stablecoin that could serve as a bridge between Web3 and traditional finance. All three companies participated in the HKMA’s regulatory sandbox earlier this year, testing stablecoin use cases in payments and capital markets. Animoca Group President Evan Auyang said stablecoins remain “at the early frontier” of institutional and retail adoption.

The Stablecoins Ordinance, which took effect Aug. 1, mandates licensing for all fiat-backed stablecoin issuers. Hong Kong’s regulatory clarity has attracted global players looking to operate in a well-defined legal environment. Anchorpoint Financial aims to leverage the JV’s combined financial, technological, and telecom expertise to drive adoption both domestically and internationally.

Trump signs executive order to end ‘unfair debanking’ of crypto

President Trump has signed an executive order removing “reputational risk” as a justification for regulators to pressure banks into cutting ties with crypto clients. The White House said such practices “erode public trust in banking institutions and regulators” and have led to payroll freezes, account closures, and other harm to lawful businesses.

The measure directly addresses complaints from industry members about what they call “Operation Choke Point 2.0,” a perceived campaign to deny crypto firms access to banking. Lawmakers including Sen. Cynthia Lummis and Rep. French Hill applauded the move, calling it a safeguard against politically motivated financial discrimination.

Federal banking agencies, including the Fed, OCC, and FDIC, had already pledged to stop weighing reputational risk in supervisory decisions. The executive order codifies that shift, signaling a friendlier stance toward the crypto industry from the administration and aligning with broader Republican policy priorities on financial access.

Tether invests in MiCA-licensed Bit2Me to expand in EU and LatAm

Tether has acquired a minority stake in Spanish crypto exchange Bit2Me and is leading a €30M ($32.7M) funding round to fuel expansion in Europe and Latin America. Bit2Me recently became the first Spanish-speaking exchange to obtain a CASP license under the EU’s MiCA framework, allowing it to passport services across all 27 member states.

The investment provides Tether with a regulated European foothold at a time when USDT’s presence in the region has been challenged by new rules. Several exchanges have delisted or deprioritized the stablecoin over the past year, making compliant local partners increasingly important for market access.

Founded in 2014 and serving over 1.2 million users, Bit2Me plans to focus initial LatAm growth in Argentina. The deal also extends Tether’s recent investment streak, which has included a gold-royalty company and multiple MiCA-compliant stablecoin initiatives, supported by record quarterly profits from its $127B U.S. Treasury portfolio.