Crypto Convergence: Partnerships, Privacy, and Products Fueling the Next Bull Cycle

Happy Thursday, TM Family!

Welcome to the Token Metrics Research | Daily newsletter, where we cover key market movements, regulatory updates, and early alpha for our readers and investors. 

Let's dive in! 

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 Now let's get back to the top stories of the day.

SoftBank's PayPay acquiring a 40% stake in Binance Japan exemplifies the thesis that true mass adoption hinges on fiat-crypto bridges, potentially unlocking Web3 for Japan's 70 million digital payment users.

The deal, announced amid BNB's explosive rally, up 48% since early September to a $182B market cap, reclaiming third place behind BTC and ETH, forms a capital and business alliance that integrates PayPay Money directly into Binance Japan's app.

Users can now buy crypto with PayPal's wallet and withdraw fiat seamlessly, bypassing clunky on-ramps. This isn't just a stake; it's a blueprint for co-developing hybrid products that fuse cashless payments with blockchain tech, as highlighted by Binance Japan GM Takeshi Chino.

Contextually, Japan is no crypto novice, public firms like Metaplanet hold massive BTC treasuries (over 30,000 BTC), and startups like JPYC are gearing up for yen-pegged stablecoins. PayPay's move, fresh off its South Korea launch and U.S. IPO filing, signals SoftBank's aggressive pivot into digital finance.

For investors, watch BNB's momentum: its 80% three-month surge ties to network burns and usage spikes, now amplified by Farcaster's BNB Chain integration for cross-chain social apps. This could catalyze a broader Asian crypto boom, but regulatory scrutiny in Japan remains a wildcard, position accordingly with diversified exposure to BNB and SOL ecosystems.

Privacy has been Ethereum's Achilles' heel amid regulatory glare on transparent ledgers, but the Foundation's launch of a dedicated Privacy Cluster marks a game-changing escalation.

Coordinated by Blockscout founder Igor Barinov, this 47-strong team of cryptographers and engineers builds on the Privacy & Scaling Explorations (PSE) group's work since 2018, aiming for "end-to-end" privacy as a core property of Layer 1.

Key initiatives include zero-knowledge proofs for confidential transfers, zkID for selective disclosure, and tools like Kohaku SDK to shield against RPC metadata leaks and surveillance.

This isn't hype; it's addressing real pain points: over 700 privacy projects exist in the ecosystem, with PSE primitives like Semaphore (anonymous signaling) and MACI (private voting) already being forked hundreds of times. An Institutional Privacy Task Force will translate compliance needs into enterprise specs, balancing regs with neutrality.

For crypto natives, this elevates ETH's utility in DeFi and beyond, potentially countering rivals like Zcash or Monero while dodging mixer crackdowns. Tie this to broader network expansions: Farcaster's BNB Chain support enables instant cross-chain swaps without bridging, amid BNB's breakout to the third-largest asset.

Ethereum's privacy push could redefine governance and payments, but execution risks loom; watch for protocol upgrades in the fourth quarter. If successful, ETH holders may see renewed institutional inflows, particularly with Grayscale's new staking ETPs for ETH and SOL signaling a potential normalization of yields.

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Now, let's continue with the deep dive/hidden gems, TM Daily.

Coinbase is firing on all cylinders to blend CeFi and DeFi, launching in-app DEX trading on Base for U.S. users (excluding NY) while securing NY approval for staking, moves that could supercharge volumes amid Q2's $237B dip. 

The DEX feature, powered by 1inch and 0x liquidity, enables non-custodial swaps of millions of assets pre-listing, starting with Base-native tokens like Virtuals AI and Reserve DTFs.

Simultaneously, NY's greenlight restores staking for ETH and SOL to millions, following the SEC's dropped lawsuit, and state wins in IL, KY, and SC. CEO Brian Armstrong calls it "great progress," urging CA, NJ, MD, and WI to follow, which could potentially unlock $130M+ in lost rewards.

This dovetails with Square's Bitcoin payments integration via the Lightning Network, allowing merchants to accept direct BTC and convert to fiat instantly, a feature Block's latest update under Jack Dorsey aims to embed at scale.

Adding the UK's lift on retail crypto ETN bans, which enables tax-free holdings in pensions and ISAs, is accelerating the regulatory thaw and driving adoption.

For investors, this signals U.S. liquidity influx: perp DEX volumes hit $1.2T last month, up 48%, led by platforms like Aster and Hyperliquid.

Monitor Base TVL spikes and staking yields, Coinbase's hybrid model could erode pure DEX market share while onboarding normies.

The yield wars are intensifying, with Bitwise's 0.20% fee for its Solana Staking ETF undercutting rivals, and 21Shares adding staking to its ETH ETF with a one-year fee waiver, despite SEC delays resulting from the U.S. shutdown. Bloomberg's Eric Balchunas notes the low fees' inflow track record, positioning SOL for spot ETF momentum post-BTC/ETH approvals.

Layer in Jupiter's JupUSD stablecoin launch with Ethena on Solana, initially backed by USDtb (tied to BlackRock's BUIDL), expanding to USDe for yields, aiming to convert $750M USDC liquidity and unify Solana DeFi. This mirrors trends like Aave's GHO, bolstering Solana's $15B+ stablecoin market.

Meanwhile, Bitcoin life insurer Meanwhile raised $82M (totaling $122M in 2025) to scale BTC-denominated policies, leveraging conservative lending for yields and now becoming one of the largest long-duration BTC lenders.

Plume's acquisition of Dinero integrates liquid staking (ipxETH, pxSOL, pxBTC) into its RWA platform, following SEC transfer agent approval, targeting institutional yields with a $360M TVL.

Amina Bank's regulated POL staking offers up to 15% yields for institutions, bridging traditional finance (tradfi) with Polygon. Ex-Revolut's Neverless adds leveraged BTC plans (up to 5x) for retail DCA, processing $1B+ volume.

Amid BTC's rally toward $130K forecasts and Elon's prescient "safe word" nod resurfacing, these tools hedge against inflation while amplifying returns, eyeing Ohio's crypto reserve expansions and Citi's stablecoin bets for more traditional finance (tradfi) inflows. For natives, prioritize audited yields; Solana's Helius stacking 5% of supply underscores ecosystem bets.

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That's all for today. Let's talk tomorrow.