liquidity

Aave V4's Arc Markets connects USD and EUR loans to shared liquidity. This deployment went live on September 16 and includes four types of reserve assets.Among them, the Forex market allows borrowers to collateralize EURC, while EURC does not qualify as eligible collateral in Arc's Main market, thus both markets share the same liquidity source.

According to Fortune, the tokenized fund liquidity platform Fission announced the completion of a $10 million Series A financing round, led by Pantera Capital, with participation from Circle Ventures, Borderless Capital, and Ari Rubenstein. This round of financing was completed in September, and the company did not disclose its valuation.Fission aims to solve the problem of tokenized fund shares being difficult to quickly liquidate. The platform acts as a buyer, allowing investors to sell their shares without having to wait for the fund to process redemptions. Users connect their digital wallets and submit sale requests, while Fission handles the backend legal and transaction processes. CEO Jonathan Shaffer stated that for products that typically take about 200 days to sell, investors can pay a fee to sell immediately and complete settlement in 90 seconds or less.Fission was founded in 2024, and the founding team includes former employees of Point72 and Securitize. Currently, the clients are mainly institutional investors and organizations holding on-chain assets, including hedge funds holding tokenized private credit or equity assets, crypto institutions managing treasury, and stablecoin issuers allocating reserves to interest-bearing tokenized investment products.

The decentralized trading protocol Uniswap announced that the VolatilePair Hook has been launched on the Ethereum mainnet, with the first trading pair being ETH/USDC. This is a dynamic fee Hook for liquidity providers in Uniswap v4, where fees adjust according to market fluctuations.Uniswap stated that this year, the trading volume of volatile trading pairs on Uniswap exceeded $50 billion. Unlike stablecoin trading pairs, these assets do not have a fixed price, and liquidity providers under static fees will bear the price changes not covered by the fees. This Hook recalculates the buy and sell rates separately for each exchange based on recent price changes, maintaining competitive spreads.When the pool price rises, the buying cost is higher and the selling cost is lower; when the price falls, the direction of the fees is reversed. After significant price changes, trades that drive price retractions will pay temporary fees. Pool parameters and fee logic can be upgraded through Uniswap governance without the need to migrate liquidity pools. The StablePair Hook, launched in September, introduced dynamic fees for stablecoin trading pairs, achieving a trading volume of $3.1 billion within four weeks. The VolatilePair Hook is part of the Hooks launched by Uniswap Labs, along with StablePair, Permissioned Pools, and LitePSM.

Pump.fun announced that since the launch of the BOOST model about three months ago, it has injected $106 million into its ecosystem.The model aims to reinvest liquidity that may be idle during the token migration process back into graduated tokens.

The International Monetary Fund (IMF) released the October "Global Financial Stability Report," which for the first time discusses the tokenized market in a dedicated chapter. The report shows that as of the end of July, the public market size of tokenized Real World Assets (RWA), excluding repos and stablecoins, is approximately $65 billion, with credit accounting for about $30.4 billion, money market funds about $17.5 billion, and stocks about $2.3 billion. The average daily trading volume of tokenized repos over 30 days reached $303 billion.The report states that the issuance of tokenized stocks is highly concentrated, with Ondo Finance and Backed Finance (xStocks) together accounting for over 70%. More than 50% of trades occur outside regular trading hours for U.S. stocks, with about 80% of trade sizes being less than one share, volatility being about 1.5 times that of traditional markets, and liquidity being significantly lower.The IMF believes that while the scale of tokenized assets is small, it may bring efficiency improvements in multiple areas, but it could also create new channels for leverage accumulation and liquidity and maturity mismatches, exacerbating technological and infrastructure risks, with current systemic risks remaining limited. The IMF also pointed out that in the absence of interoperable central bank currencies, stablecoins and tokenized deposits may become the main settlement tools in the tokenized capital market, leading to issuer credit risk and concentration risk.

Sui liquidity staking protocol Volo announced that the additional incentives for Volo Dowsure stable vault S1 participants are now online. Eligible S1 participants can now claim additional incentives denominated in USD through the exclusive claim page of the Dow Protocol.Volo stated that all eligible Sui wallet addresses and the corresponding deposit amounts have been provided to the Dow Protocol. Participants need to connect and bind their EVM wallet, and after completing the S1 participation verification, they can claim the aforementioned incentives on the Dow Protocol website.

According to The Defiant, the OSL brand stablecoin USDGO has integrated with Jupiter Lend and Fluid on the Solana network to increase its trading liquidity support.USDGO is issued by Anchorage Digital Bank, with a current circulation of approximately $1.29 billion. Reports indicate that the lending market for USDGO is planned to be launched next.

The International Monetary Fund (IMF) stated that the liquidity of tokenized stocks is lower than that of traditional stocks, and their volatility is also higher.Watcher Guru cited the IMF's relevant statement, saying that compared to traditional stocks, tokenized stocks "have lower liquidity and greater volatility." This statement points to the IMF's assessment of the market structure of tokenized assets, involving comparisons of trading depth, price fluctuations, and traditional securities markets.

Blockworks analyst Jake Koch-Gallup published a rebuttal to the viewpoint that Ethereum is losing its liquidity moat, arguing that despite the challenges to ETH's value capture ability and stablecoin market share, its reserve asset characteristics, Layer 2 ecosystem, and institutional adoption still constitute a long-term competitive advantage.In response to the issue of low on-chain revenue for Ethereum, Jake pointed out that ETH's valuation depends not only on actual economic value (REV) but also includes reserve asset and collateral premiums, with ETH's market capitalization currently about 1,100 times the REV of the past 12 months. Additionally, the development of Layer 2 networks such as Robinhood Chain and Base can still strengthen the Ethereum ecosystem, rather than indicating that funds and applications are completely leaving Ethereum. Jake also noted that Ethereum currently accounts for about 65% of the total value locked (TVL) in DeFi, with approximately 45% of the on-chain managed scale in real-world assets (RWA), while spot ETFs and corporate treasuries collectively hold about 13% of the total ETH supply, and about 36% of the ETH supply is currently staked.Although Ethereum's stablecoin market share has gradually faced dilution pressure from around 51%, Jake believes that as the overall stablecoin market expands, its absolute scale may continue to grow. However, Jake also acknowledged that relying solely on ETH's reserve asset premium, without sufficient revenue and value return mechanisms, raises questions about its valuation sustainability.

The European Securities and Markets Authority (ESMA) has released a consultation document to gather feedback from the industry on the risks associated with tokenized collateral in terms of legality, liquidity, and operations. This is to assess whether clearinghouses can acquire and liquidate relevant assets under market pressure and to determine if new EU regulatory measures are needed. ESMA Chair Verena Ross stated that legal certainty, infrastructure interoperability, and appropriate regulation are necessary to create conditions for the safe cross-border operation and scalable development of the tokenized market.Tokenized collateral is entering the European clearing business, allowing banks and investors to more quickly obtain securities to meet margin requirements. This assessment will also review whether current EU rules can support clearinghouses in acquiring and clearing tokenized collateral in the event of member defaults. In July 2025, Eurex Clearing will launch a collateral service based on distributed ledger technology, and JPMorgan has completed its first real-time transaction for Dutch pension investor PGGM.ESMA will also evaluate the tokenized forms of assets held by traditional financial infrastructure, assets originally issued on distributed ledgers, and their relationship with stablecoins, central bank currencies, and tokenized deposits. The European Central Bank system will launch Pontes in September 2025 for settling tokenized asset transactions in central bank currency, which can connect blockchain infrastructure with existing settlement systems.

Bitcoin collateralized lending is gradually expanding from a cryptocurrency financial scene focused on trading and investment to real credit needs such as tuition fees, living expenses, business operating funds, and real estate, showing a significant change in market usage. Institutions like SALT Lending and Ledn indicate that more and more borrowers are choosing to collateralize BTC for liquidity instead of selling their holdings.Since its establishment in 2018, Ledn has issued loans totaling over $11 billion and expects this scale to grow to $1 trillion in the coming years. Its clients include entrepreneurs and institutional investors seeking operating funds, as well as individuals borrowing to pay for children's education, real estate investments, and short-term living expenses. This trend indicates that the financial attributes of BTC are extending from "tradable assets" further to "collateralizable assets." Borrowers hope to unlock its value without selling BTC while still retaining potential upside exposure.At the same time, institutions like SALT are promoting fixed-rate, long-term products, bringing crypto collateralized loans closer to traditional credit models like home mortgages. Coinbase has also recently launched fixed-rate BTC collateralized loans through Morpho. Ledn further anticipates that similar models may expand from BTC to traditional hard assets like gold, and the boundaries of the collateralized asset lending market are widening.

Analyst Murphy stated that when the BTC price drops, the liquidity provided by market makers naturally leans towards the Bid (buy side), while traders also place orders at lower prices waiting to take delivery. Data shows that the 5% depth difference in Binance's spot order book reached 80 million dollars when BTC fell to about 83,000 dollars, which is relatively higher compared to the pullback period from September 10 to 16, approaching the level during the bottom consolidation phase of BTC in July.At 83,000 dollars, the buy orders within the 5% depth range roughly cover down to 79,000 dollars, indicating that there is a thick support level in the range of 83,000 to 79,000 dollars, which may reduce the risk of the price being quickly breached. Meanwhile, the difference between the Taker's active buy and active sell transaction volume on Binance has continued to rise during the price decline, indicating an increase in active buying and a decrease in active selling. Murphy believes this shows that traders are not exhibiting obvious pessimism; not only is there sufficient passive support below, but the willingness to actively buy has actually increased during the price decline.

According to CoinDesk, citing two individuals with direct knowledge, Kraken's parent company Payward is in talks with Wells Fargo to become its cryptocurrency liquidity provider. Under the potential arrangement, Wyoming-based Payward would supply liquidity for digital asset trading. The individuals requested anonymity as the matter is not yet public, negotiations are ongoing, and an agreement may not be reached. Both Payward and Wells Fargo declined to comment.The report states that cryptocurrency exchanges often serve as a gateway for banks and institutional investors to access digital asset liquidity, providing access to trading venues and assisting in order execution. Wells Fargo previously served as the exclusive capital markets advisor for Nasdaq, which agreed in September to invest $100 million in Payward and deepen collaboration in tokenized stocks and market surveillance. CoinDesk also reported that Payward was in talks last week with custodian bank BNY regarding financial infrastructure collaboration.

According to market news, Hunter Biden, the son of former U.S. President Biden, announced the results of an independent investigation into the launch of the LAPTOP token, stating that he has commissioned the forensic company Groom Lake to verify all transactions on the day of the launch. He denied that the team cashed out, stating that the founder's tokens remain concentrated in the same wallet and have not been transferred since the launch; his personal tokens have been locked for six months and will be released over two years.He cited the investigation, stating that Market Maker 1 had $500,000 in startup capital but only invested about $5,200 and less than 30,000 tokens into the liquidity pool, which accounted for only 0.003% of the total supply. The extremely low liquidity caused the price to rise from $0.05 to about $317 in less than two minutes, followed by a 98% drop within the next hour. After the price peaked 84 seconds later, Market Maker 1 withdrew funds during the sell-off, causing the available funds to support sell orders to drop from $16,200 to zero, close to the current price.He stated that Market Maker 1's DEX position made a profit of about $686,000, while Market Maker 2's related DEX transactions netted over $2.1 million, and he believes that the market maker responsible for the launch issues should buy back and destroy the tokens. He stated that he takes ultimate responsibility, will not exit the project, and plans to destroy most of the unclaimed tokens from the first airdrop next week; this airdrop accounts for 10% of the total supply.

A report from the U.S. Senate Permanent Subcommittee on Investigations (PSI) identifies stablecoins, particularly USDT, as a key liquidity channel supporting Iran's shadow banking system. Licensed virtual asset service providers (VASP) in the Gulf Cooperation Council (GCC) region face heightened sanctions compliance pressure and need to enhance wallet ownership identification and counterparty assessment.Soham Jethani, a partner at the law firm Septten, stated that merchants settling crypto assets into local fiat currency do not necessarily avoid sanctions risks. Liability may involve designated entities, the provision of funds or economic resources, and asset handling within the transaction chain, potentially arising before the final settlement by banks. Jethani pointed out that the name of the stablecoin or the currency in which it is priced does not determine legal ownership; specific rights depend on contractual arrangements and actual payment processes.Globally circulating stablecoins may also pose secondary sanctions risks, as indirect or historical wallet associations do not automatically constitute violations and must be assessed in conjunction with applicable regulations, transaction participants, and specific facts. In regulated markets like the UAE, licensed exchange wallets are continuously monitored, and related funds can be frozen before consumption settlements, with merchants also required to complete KYC. Regulated VASPs handling deposits and withdrawals bear the responsibility for counterparty and sanctions risk assessment and corresponding controls.

The Solana tokenized silver project Dominion has announced its closure. The team stated that a security incident in September led to a significant amount of SILV being compromised and sold off, resulting in a liquidity collapse, operational capital losses, and damage to market structure. The capital required for reconstruction has exceeded the project's remaining resources.Dominion has allocated most of its remaining liquid funds to a refund plan, allowing eligible pre-attack SILV holders to exit at $63 per token. SILV was originally designed to be a Solana token backed 1:1 by physical silver, with each token corresponding to one troy ounce of silver.On September 11, attackers gained control of its 3/5 multi-signature key and sold approximately 46,909 SILV on a thinly traded DEX, with a nominal value of about $3 million before the attack, ultimately cashing out around $238,000.

According to U.Today, as the EU MiCA transition period ended on July 1, obtaining MiCA authorization has become an important foundation for cryptocurrency trading platforms to continue serving European users. Gate Europe obtained MiCA authorization before the end of the transition period and expanded related services through the European Economic Area passport mechanism. Gate data shows that from June 16 to September 22, the platform added at least 68 new spot trading pairs, currently covering about 190 assets and 382 trading pairs.The article cites data from CASP Tracker, indicating that as of September 28, 84 out of the world's largest 100 cryptocurrency trading platforms have not yet obtained MiCA authorization. Meanwhile, Gate Europe passed the PCI DSS v4.0.1 Level 1 compliance assessment on September 15, covering Gate Connect and Gate Card. Gate Europe CEO Dr. Giovanni Cunti stated that security and compliance are key to building trusted payment services in Europe, and obtaining PCI DSS certification is an important step in strengthening payment infrastructure.In terms of liquidity, Gate data shows that from September 14 to 27, the order book depth for BTC/USDC and ETH/USDC within 0.1% of the midpoint increased by approximately 14% and 12%, reaching $1.32 million and $555,000, respectively. Meanwhile, DefiLlama MiCA exchange data shows that the depth of Gate Europe's spot market within 2% of the midpoint reached $15.9 million, higher than other platforms during the same period. Relying on the compliant foundation built on the dual licenses of MiCA and Payment Institutions (PI), Gate Europe will continue to improve asset coverage and liquidity construction, providing European users with a richer selection of digital asset trading options and a better trading experience.

According to a report by CoinGecko, Ethereum's native token ETH outperformed Bitcoin in the third quarter, with a price increase of 70%, surpassing Bitcoin's 42% increase. However, during the same period, ETH's liquidity significantly narrowed compared to Bitcoin.From July 6 to September 30, the average daily market median depth of ETH was only 35% to 45% of Bitcoin's, while it was at least 60% during the same period last year. Market depth measures the total dollar value of buy and sell orders within a certain price range. The depth of ETH within a 0.15% price range was between 13 million to 14 million dollars. CoinGecko stated that ETH still maintained good liquidity in this range, with most exchanges having both buy and sell side depths exceeding 1 million dollars.The liquidity of other mainstream tokens is also thinning. Solana's SOL saw its depth within a 2% price range drop from about 28 million dollars per side last year to about 20 million dollars this year. XRP's total depth remained stable at around 30 million dollars, but the order book was biased towards buyers, with buy orders around 18 million dollars and sell orders around 14 million dollars. CoinGecko pointed out that XRP's market capitalization is about 40% higher than SOL, but the depth within the 2% price range is lower because SOL's average daily trading volume is still 25% higher than XRP.

THORChain announced that the ZEC liquidity pool is now live, and the network has completed a node rotation, with all nodes beginning to monitor the Zcash chain.THORChain stated that trading functionality will be the next step; currently, liquidity is shallow, and early traders should be aware of risks such as slippage. Previously, THORChain added native support for Zcash in the protocol upgrade, including UTXO handling, RPC logic, and ZEC price oracles, and continues to advance mainnet integration.

On-chain data analysis platform Glassnode stated that the sell wall above Bitcoin has disappeared. The buy orders absorbed the sell wall at the $85,000 level yesterday, which had been tested multiple times over the past week but failed to break through.Glassnode indicated that the remaining sell orders also seem to have been removed. With the reduction in sell-side liquidity above, the price may rise more quickly.