The cryptocurrency market experienced several significant developments recently, including the launch of a new payment service by PayPal, regulatory delays by the U.S. Securities and Exchange Commission (SEC), and a major partnership involving Avalanche. These events reflect the increasing integration of cryptocurrency and mainstream financial systems.
PayPal Expands Crypto Payments with PYUSD
On Monday, PayPal announced the launch of a new service that enables small businesses to accept payments in over 100 cryptocurrencies through its stablecoin, PYUSD. This initiative, known as “Pay with Crypto,” allows users to convert various digital currencies into PYUSD, which is issued by Paxos. The feature aims to reduce transaction costs significantly, with initial fees set at 0.99% of the transaction value, increasing to 1.5% in the following year.
With this service, merchants can expect instant settlements in PYUSD, potentially reducing international transaction fees by up to 90%. The service will first be available in the U.S. and will support major cryptocurrency wallets, including those from Coinbase, Binance, Kraken, and others. Notably, even meme coins such as TRUMP and FARTCOIN may be supported, depending on liquidity across exchanges.
Since its introduction in 2023, PYUSD has reached a market capitalization of approximately $900 million, ranking as the 12th-largest stablecoin. However, PayPal has clarified that PYUSD is not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).
SEC Postpones Decisions on Truth Social ETF and Grayscale Solana Trust
In regulatory news, the SEC has delayed its ruling on the proposed Truth Social Bitcoin ETF, extending the review period until September 18, 2025. This fund, filed by Trump Media & Technology Group, could potentially lead to increased involvement of the Trump family in the cryptocurrency sector. The SEC indicated that additional time is needed to evaluate the proposal and its implications.
The agency also postponed its decision on the Grayscale Solana Trust, which is now expected by October 10, 2025. Similar proposals have been submitted by firms such as VanEck, 21Shares, and Bitwise, reflecting a growing interest in Solana-based ETFs. This decision aligns with the SEC’s standard procedures as it grapples with a rising number of crypto-related ETF applications.
Following the approval of twelve spot Bitcoin ETFs in January, the delay for Truth Social’s ETF has become part of a broader trend within the regulatory landscape.
Avalanche Partners with Grove for Tokenized Assets
Avalanche is significantly expanding its reach into real-world assets (RWAs) through a new partnership with Grove and Janus Henderson. This collaboration involves a commitment of $250 million to bring two tokenized investment funds onto the Avalanche blockchain: the Anemoy AAA CLO Fund (JAAA) and the Anemoy Treasury Fund (JTRSY).
The JAAA fund will focus on collateralized loan obligations, while JTRSY will concentrate on short-term U.S. Treasury bills. The JTRSY fund currently manages over $408 million in assets, primarily on the Ethereum network, and will now expand its operations onto Avalanche. This partnership is expected to more than double Avalanche’s on-chain RWA value, previously recorded at $195 million.
With this move, Avalanche joins other networks like Aptos, Solana, and Stellar, which are also enhancing their tokenized asset offerings. The growing adoption of stablecoins, particularly in light of recent legislative efforts such as the GENIUS Act, is anticipated to benefit institutional investors utilizing stablecoins for transactions.
Overall, these developments signal a pivotal moment in the cryptocurrency landscape, with traditional financial systems increasingly embracing blockchain technology and digital assets.
