World’s first Bitcoin banks incoming

August 08, 2025

 

Reading time: 5 minutes

El Salvador’s Bitcoin banks are coming: World’s first BTC-focused institutions in the works

Key points:

  • El Salvador is preparing to launch Bitcoin-centric banks, potentially becoming the first nation to establish a BTC-only banking network.

  • The move follows the country’s $730M BTC stockpile and ongoing pro-crypto policy, as officials aim to attract more global investment.

News - El Salvador’s Bitcoin Office has confirmed plans to roll out Bitcoin banks, signaling the next phase of its national BTC strategy. If implemented, this would mark the world’s first banking network focused on services fully denominated in Bitcoin.

While specific timelines and structural details have yet to be released, the initiative includes proposals for a private investment bank operating in both BTC and USD, with services like deposits, loans, and payments. These banks would require a minimum capital of $50 million and may benefit from relaxed regulations for digital asset operations.

Max Keiser, senior adviser to President Nayib Bukele, called the plan part of Bitcoin’s “unstoppable” march and framed it as a direct challenge to traditional financial systems.

Reserves grow, critics watch - El Salvador’s Bitcoin holdings have grown to 6,262 BTC, valued at over $730 million, despite recent IMF criticism. Although no new BTC purchases have occurred since February 2025, the government continues to promote long-term crypto integration. Recent comments from financial watchdogs claim the country’s recent “purchases” were internal transfers, not fresh buys.

Global ripple effect? - The announcement arrives as other nations begin studying El Salvador’s model. According to reports, Bolivia is exploring a similar path, and crypto firms like Tether have already moved their headquarters to the country. Industry observers believe that if Bitcoin banking takes hold in El Salvador, it could encourage broader adoption worldwide.

Rising ETH, falling trust? Binance accusations and whale moves rattle market

Key points:

  • Whale sell-offs and Binance-linked allegations have sparked concern just as Ethereum nears the $4,000 mark.

  • Institutional demand and crypto treasury inflows remain strong, but Vitalik Buterin warns of overleveraging risks.

News - Ethereum’s march toward the $4,000 milestone is facing turbulence as on-chain data reveals several large wallets offloading ETH. One whale deposited 9,000 ETH ($35 million) to Kraken, while others liquidated millions, including a $19.47 million trade at $3,895. The timing has triggered speculation of coordinated sell pressure, especially as crypto investor and Key Opinion Leader (KOL) Ted Pillows alleged Binance was manipulating ETH’s price through transfers to market-maker wallets. Binance has not commented on the claims yet.

Despite these jitters, Ethereum has seen a 163% rally from April’s low, and institutional interest continues to surge. ETH is now the 27th-largest global asset by market cap, and more than 36 million ETH, nearly 30% of total supply, is currently staked.

Treasury boom or overleveraged bust? - A wave of companies is betting big on Ethereum. Fundamental Global filed to raise $5 billion to build a 10% stake in the network, while SharpLink Gaming and Cosmos Health collectively hold over $2 billion in ETH. In Hong Kong, IVD Medical added $19 million in ETH to support tokenized healthcare asset settlements and stablecoin backing.

Vitalik Buterin’s caution - Ethereum co-founder Vitalik Buterin supports ETH treasury firms but warned that over-leveraged plays could backfire. In a recent podcast, he said, “If you woke me up three years from now and told me that treasuries led to the downfall of ETH, then... my guess for why would be that they turned it into an overleveraged game.”

While ETH continues attracting institutional capital, the tension between bullish demand and whale-driven sell pressure suggests the $4K milestone could act as both a magnet and a minefield.

Standard Chartered, Animoca target Hong Kong stablecoin license

Key points:

  • Anchorpoint, a joint venture by Standard Chartered and Animoca Brands, aims to secure a stablecoin issuer license under Hong Kong’s new crypto regime.

  • The move aligns with Hong Kong’s push to become a global digital asset hub, with up to 40 firms expected to apply for licenses.

News - Standard Chartered’s Hong Kong division and Web3 powerhouse Animoca Brands have launched a new joint venture, Anchorpoint Financial, to apply for a stablecoin license under Hong Kong’s newly implemented regulatory regime. Hong Kong’s fiat-referenced stablecoin framework officially came into effect on August 1, and Anchorpoint notified the Hong Kong Monetary Authority (HKMA) of its intent to seek approval the same day.

The joint venture also includes Hong Kong Telecom and builds on earlier collaboration through HKMA’s stablecoin sandbox. If successful, Anchorpoint will issue stablecoins backed by the Hong Kong dollar, helping expand the city's role as a regulated crypto innovation hub.

Why Hong Kong’s framework matters - Hong Kong’s new licensing rules are designed to balance innovation with investor protection. Any entity wishing to issue or market fiat-backed stablecoins to retail investors must now secure a license. While the legislation has caused volatility among local crypto-related stocks, industry leaders see it as a catalyst for long-term growth.

Animoca co-founder Yat Siu said that clearer regulations could unlock broader adoption, giving businesses and individuals more confidence in participating in stablecoin ecosystems.

A crowded race for licensing - Anchorpoint isn’t alone in pursuing approval. JD.com, Ant International, and other firms are reportedly exploring similar stablecoin initiatives in Hong Kong. Although as many as 40 companies are expected to apply, HKMA CEO Eddie Yue noted that fewer than 10 licenses are likely to be granted.

What’s next? - Anchorpoint’s application marks one of the first major plays by a global bank–crypto partnership under Hong Kong’s revamped regulatory model. If approved, it could pave the way for cross-border payment solutions and new crypto-financial products in Asia’s growing stablecoin economy.

Binance enlists BBVA for custody boost amid rising crypto regulation in Europe

Key points:

  • Binance has partnered with Spanish banking giant BBVA to offer off-exchange custody for crypto traders, using U.S. Treasuries as margin collateral.

  • The move aims to rebuild trust post-FTX, reduce counterparty risk, and comply with Europe’s tightening MiCA regulations.

News - Binance has joined forces with BBVA, one of Spain’s largest banks, to allow crypto traders to store assets off-exchange in U.S. Treasuries. Under this model, BBVA will hold client margin collateral, primarily in Treasuries, which Binance will accept for trading. The funds remain segregated from the exchange’s control, creating a buffer against operational failures and aligning with incoming regulatory standards under Europe’s MiCA framework.

The custody arrangement follows Binance’s $4.3 billion penalty to U.S. regulators in 2023 and growing investor demand for safety following the FTX collapse. By enlisting a regulated bank, Binance aims to reassure both retail and institutional clients while responding to the global push for stronger user fund protections.

Traditional banks deepen crypto exposure - BBVA’s role highlights how traditional financial institutions are integrating with crypto. The bank recently rolled out trading and custody services for Bitcoin and Ethereum within its mobile app and received approval from Spain’s financial regulator earlier this year. It has also advised private clients to allocate up to 7% of their portfolios into crypto assets.

Market reactions and institutional trust - Experts view the Binance-BBVA deal as a turning point in crypto infrastructure. According to ChangeNOW’s CSO Pauline Shangett, custody via Treasuries reduces operational risks and mirrors protections seen in traditional derivatives markets. BBVA’s “name recognition” further strengthens trust among users, especially compared to smaller or lesser-known custodians.

With additional partnerships like Sygnum and FlowBank already in place, Binance appears committed to maturing its custody network. As MiCA rules push exchanges toward greater accountability, deals like this may soon become the industry norm.

Crypto scams uncovered

  • In Australia, a crypto laundering ring used a cash-in-transit security firm and a classic car dealership to clean $123 million, employing smurfing, commingling, and false invoices before converting the proceeds to cryptocurrency.

  • Scammers are deploying fake “Ethereum trading bot” YouTube videos that conceal malicious smart contracts; one such scam has already netted over $900,000 from unsuspecting users.

  • A 54‑year‑old woman in India was tricked out of $190,000 after a part-time job scam led her to a fake crypto trading platform. The scammers showed early returns to gain her trust, then demanded bogus “unfreeze fees” to release her growing balance, which is classic social engineering wrapped in crypto gloss.

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Top 3 coins of the day

Stellar (XLM)

Key points:

  • XLM traded at $0.45 after rising 4.64% in the past 24 hours, extending its 7-day gain to 17% amid strong market interest.

  • The price climbed above the Bollinger Band basis line, while the CMF remained flat near zero, signaling neutral capital inflows.

What you should know:

Stellar’s price advanced after breaking above the $0.45 resistance zone, following fresh bullish sentiment triggered by Ripple’s legal win and Stellar’s upcoming Protocol 23 upgrade. The Bollinger Bands expanded slightly, confirming increased volatility, while volume remained elevated above recent averages. Although the Chaikin Money Flow (CMF) stayed neutral, price action suggested algorithmic momentum kicked in as XLM flipped its mid-band resistance into support. With the Protocol 23 upgrade set for September and validator voting due next week, traders appear to be positioning early for potential upside. The $0.42–$0.44 range now acts as a crucial support zone. If XLM holds above this during broader market volatility, the next leg toward $0.50–$0.59 remains in play. However, fading inflows or failure to maintain daily closes above $0.45 could stall the rally. XLM’s short-term strength hinges on developer engagement and market response to upcoming upgrade milestones.

Key points:

  • LINK was trading at $19.32 at press time after climbing 4.55% over the past 24 hours, outperforming the broader crypto market.

  • The Parabolic SAR dotted lines trailed closely under the candles, while the Awesome Oscillator flipped green after multiple red sessions, hinting at renewed bullish momentum.

What you should know:

Chainlink’s price broke above the $19.16 resistance level, buoyed by the launch of its on-chain Strategic Reserve. The initiative converted enterprise revenue into LINK, signaling institutional conviction and a long-term deflationary trend. This helped spark a fresh wave of buying pressure. Meanwhile, the Parabolic SAR confirmed the uptrend’s strength, flipping bullish for the third straight day. Volume also ticked higher, reinforcing trader confidence in the breakout. The Awesome Oscillator posted a green bar above the zero line, indicating a potential momentum shift in favor of bulls. LINK now needs to maintain daily closes above $19.50 to secure a breakout toward the next resistance zone near $21. If sustained, this level could serve as a springboard for a multi-week rally. However, any rejection here could invite short-term selling, especially with futures markets running hot. Market participants should monitor whale inflows and reserve growth for confirmation of trend strength.

Aerodrome Finance (AERO)

Key points:

  • At press time, AERO was valued at $0.90, marking a 2.85% increase over the last 24 hours.

  • The price tested the upper Bollinger Band, while the SQZMOM histogram remained below the zero line with waning bearish pressure.

What you should know:

AERO hovered near its two-week high as bullish catalysts continued to support its momentum. The token climbed steadily following its listing as a core decentralized exchange within Coinbase’s new Base App, which may have helped attract new retail volume. Whale accumulation also supported price strength, with $1.3 million in inflows noted last week. Technically, the price pierced through the midline of the Bollinger Bands, hinting at an upward shift in volatility. Though the Squeeze Momentum Indicator (SQZMOM) stayed in red territory, the fading bearish bars pointed to declining sell-side strength. AERO now faces a resistance zone near $0.93, with its bullish structure intact as long as it holds above the $0.85 level. If the Base App’s traction increases further, bulls could aim for the psychological $1.00 mark next. Traders may want to monitor whether the SQZMOM flips green for stronger confirmation of renewed upside momentum.

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