The blockchain and Web3 landscape continues to evolve at a rapid pace, with significant movements across financial markets, regulatory developments, and institutional adoption. From surging crypto-related equities in Asian markets to new stablecoin initiatives and ETF inflows, the ecosystem is witnessing a confluence of trends shaping the future of digital finance.
A-Share and Hong Kong Markets Rally on Crypto and Stablecoin Momentum
On July 4, blockchain and cryptocurrency-linked stocks in both mainland China and Hong Kong markets posted strong gains, reflecting growing investor confidence in digital asset innovation.
Notably, Guotai Junan International (01788.HK) surged over 19% after officially receiving approval to offer virtual asset trading services, including cryptocurrencies. This regulatory green light marks a pivotal moment for traditional financial institutions entering the crypto space.
Meanwhile, Dmall Digital Intelligence (02586.HK) jumped 18.49% following its announcement of preparing to apply for a Hong Kong stablecoin license. The move aligns with broader regional interest in regulated digital currency solutions.
Other notable performers include:
- Huaxing Capital Holdings (01911.HK): Up 6% as it plans to invest $100 million into Web3 ventures and digital assets
- Victory Securities (08540.HK): Gained 5.8% after securing two virtual asset business approvals from Hong Kong’s SFC
- Jingbei North (002987.SZ): Hit the daily trading limit with a 10% increase
- Lakala (300773.SZ): Rose 3.22%, signaling continued market interest in payment infrastructure tied to digital finance
These movements underscore increasing institutional appetite for blockchain integration and suggest that regulatory clarity in key Asian markets is unlocking new investment opportunities.
Broader Crypto Markets Show Resilience Amid Narrow Price Ranges
Despite Bitcoin and Ethereum holding steady within tight ranges, broader crypto sectors showed positive momentum on July 4.
According to SoSoValue data:
- Bitcoin (BTC) edged up 0.47%, holding near $109,000
- Ethereum (ETH) rose 0.41%, consolidating around $2,600
Sector-specific performance revealed stronger gains:
- NFT sector increased by 1.92%, led by Pudgy Penguins (PENGU) rising 6.78%
- Meme coins climbed 1.58%, with Bonk (BONK) up 3.70% and Fartcoin (FARTCOIN) surging 6.72%
- PayFi sector gained 0.56%, driven by Litecoin (LTC) +1.31% and Stellar (XLM) +1.76%
- Layer1 protocols rose 0.32%, with Sui (SUI) jumping 4.30%
- DeFi sector edged up 0.10%, highlighted by Uniswap (UNI) gaining 3.02%
Interestingly, while Layer2 solutions dipped slightly by 0.55%, Celestia (TIA) remained resilient with a 1.43% gain.
Historical indices also reflect sustained sector strength:
- ssiNFT: +2.21%
- ssiMeme: +1.48%
- ssiDeFi: +0.91%
This diversified growth suggests maturing market dynamics beyond top-tier assets.
Major Tech Firms Push for Regulated Stablecoin Frameworks
Regulatory progress took center stage as major financial technology players advocated for formal stablecoin frameworks.
Reports indicate that JD.com and Ant Group are urging China’s central bank to approve yuan-backed stablecoins. JD emphasized the strategic importance of offshore RMB stablecoins in advancing renminbi internationalization during closed-door discussions with policymakers.
Ant Group is simultaneously preparing applications for stablecoin licenses in Hong Kong and Singapore, positioning itself for cross-border digital currency deployment.
In Japan, Minna Bank, the country’s first fully digital bank and a subsidiary of Fukuoka Financial Group, has launched a joint research initiative with Fireblocks, Solana Japan, and tech firm TIS. The project explores the issuance of stablecoins on the Solana blockchain and evaluates real-world use cases such as:
- Cross-border payments
- Real-world asset tokenization
- Daily digital transactions
- User-friendly Web3 wallet integration
These developments signal a global shift toward regulated, institutionally-backed stablecoin ecosystems.
Institutional Activity and ETF Flows Signal Growing Confidence
Large-scale wallet movements continue to draw attention. A wallet potentially linked to Matrixport recently withdrew 10,000 ETH (worth $25.97 million) from Binance. Over the past two days, this address has withdrawn a total of 50,734 ETH (~$130 million) across Binance and OKX, suggesting strategic portfolio reallocation or client fund movements.
On the ETF front, REX-Osprey SOL Spot ETF saw a net inflow of $11.4 million on July 3, with trading volume reaching $34.9 million. This follows its debut on July 2, which recorded $33.9 million in volume—indicating robust early demand for Solana-based exposure.
Coinbase also announced an upcoming system upgrade scheduled for August 2 (PST), affecting trading, deposits, withdrawals, and Coinbase Card functionality for approximately three hours. Users are advised to plan accordingly.
FTX Restructuring Raises Concerns for International Creditors
A critical update emerged from the FTX bankruptcy proceedings. Creditor representative Sunil revealed that 82% of restricted claims originate from Chinese users, yet due to local regulations prohibiting crypto trading, there is no authorized mechanism for fund distribution.
FTX has filed to implement a “restricted handling procedure” across 49 jurisdictions—including China—where payouts may be blocked if deemed legally impermissible. These regions account for about 5% of total claims, with China representing the vast majority of that value.
If confirmed as restricted, affected creditors could lose their right to receive distributions—a sobering reminder of jurisdictional risks in global crypto insolvencies.
Frequently Asked Questions
Q: Why are crypto-related stocks rising in Hong Kong and mainland China?
A: Increased regulatory clarity—such as approvals for virtual asset services—and corporate investments in Web3 are boosting investor confidence in blockchain-integrated financial models.
Q: What does the Minna Bank stablecoin research mean for everyday users?
A: It could lead to faster, cheaper cross-border payments and broader adoption of digital wallets integrated with traditional banking services via the Solana network.
Q: How might yuan-backed stablecoins impact global finance?
A: If approved, they could enhance RMB internationalization by providing a programmable, efficient medium for offshore transactions under regulatory oversight.
Q: Are ETF inflows like those in REX-Osprey SOL sustainable?
A: Early data shows strong institutional interest; sustained inflows will depend on market performance, regulatory approvals, and investor demand for direct blockchain asset exposure.
Q: What should affected FTX creditors in restricted regions do?
A: Monitor official communications from the bankruptcy estate and consult legal advisors familiar with international insolvency law and cryptocurrency regulations.
Q: Is the withdrawal activity from exchanges like Binance bullish or bearish?
A: Large withdrawals can indicate accumulation or cold storage moves rather than immediate selling pressure—context matters based on the entity involved.