Recently in the crypto market, good news has come one after another.
On the macro front, the joint statement between China and the U.S. marks the end of the tariff war, leading to a surge in global financial markets. Although Bitcoin has retreated slightly from expected lows, the altcoin market is thriving, with Ethereum continuing to lead, reaching $2,700, and the DeFi sector experiencing a comprehensive resurgence, sparking a return of the altcoin season.
In addition to the improvement of the macro environment, along with regulatory benefits, the industry itself has also welcomed new movements. On May 13, according to a press release from S&P Dow Jones Indices, the largest cryptocurrency exchange in the U.S., Coinbase Global, will be included in the S&P 500 index, replacing Discover Financial Services, which is set to be acquired by Capital One Financial. This change will take effect before trading starts on May 19.
In the mainstream market, the crypto industry has once again achieved a milestone, marking the sailing of a new era for the industry. Meanwhile, enterprises and institutions from around the world are eager to try.
On May 12, the tariff truce agreement reached between China and the U.S. in Geneva finally put a temporary stop to the prolonged trade conflict. The agreement includes a 90-day suspension of mutual tariffs of 24%, retaining a 10% base tax rate and establishing a third-country consultation mechanism. As a result of this news, U.S. stock indices saw notable increases, with S&P 500 futures rising over 3% and Nasdaq gaining 4.35%.
Despite Bitcoin dropping from $106,000 to a low of $100,700, the crypto market as a whole has quickly rebounded, with altcoins led by ETH, SOL, and BNB showing decent gains. As the tariff situation has settled, the market impact of this news will gradually slow down, and the market is returning to normal, with the bottom prices of currencies showing a rising trend.
With improvements in the macro environment, the industry is also not to be outdone. Recently, there has been a continuous stream of positive news regarding the industry: first, the U.S. state government strategic reserves celebrated their first victory, with New Hampshire passing a strategic Bitcoin reserve bill that authorizes the state treasurer to purchase Bitcoin or digital assets with a market value exceeding $500 billion, setting a holding limit of 5% of total reserve funds, potentially increasing Bitcoin's supply; second, the new SEC chairman has taken office, clearly stating that establishing a reasonable regulatory framework for the crypto asset market is a core priority during his term, continuously releasing positive signals. BlackRock is also rumored to be discussing an ETH staking proposal with the SEC, boosting market confidence.
With macro improvements and regulatory enhancements working in tandem, crypto enterprises are undoubtedly entering the best era.
On May 13, it was officially announced that Coinbase Global, the largest cryptocurrency exchange in the U.S., will be included in the S&P 500 index, marking the first time a crypto enterprise has been included in the index, achieving another milestone in the mainstreaming process of the crypto industry.
For the crypto market, Coinbase is not only well-known but also quite familiar. As the largest and most compliant crypto exchange in the United States, Coinbase stands out in the global crypto exchange field. Founded in 2012, Coinbase has a history of 13 years, during which it has experienced several ups and downs between bull and bear markets, becoming the best window for traditional finance to observe the crypto industry.
In 2021, Coinbase listed on Nasdaq with the stock code COIN. On the first day of trading, it not only did not face a decline like previous crypto concept stocks such as Canaan and Bitmain but also saw its stock price soar to a peak of $429.54, creating a market sensation. Subsequently, Coinbase's stock price closely followed the industry's cyclical fluctuations, dropping to a low of $33.26 during the trough in 2023, before showing an upward trend again. This year, Coinbase made history by replacing Discover Financial Services and becoming the first crypto enterprise included in the S&P 500. As a result, Coinbase's stock rose by 24% on the first day, currently reported at $256.90.
Interestingly, when Strategy was included in the Nasdaq 100, it was seen as the most likely company to be included in the S&P 500. However, due to the cumulative net profit requirement of the S&P 500, its competitiveness was slightly inferior. At that time, market analysis did not consider Coinbase as a core consideration, yet Coinbase steadily overtook and achieved this milestone in May.
Although there is no immediate pump effect and the symbolic significance is more pronounced in the short term, in the long run, the inclusion of crypto enterprises in major U.S. indices represents mainstream market recognition, laying the foundation for the integration of the crypto industry with traditional finance and opening up broad space for the mainstreaming of the crypto industry. Specifically, this move not only opens up capital flow from the perspective of index allocation based on individual stocks but also serves as a typical enterprise example to enhance the recognition of the crypto industry, likely attracting and expanding traditional investors. Comparing with the Discover Financial Services it is set to replace, that enterprise could achieve passive demand allocation of $13.5 billion under an index weight of 0.1%.
On the other hand, this move has further propelled the IPO frenzy of crypto enterprises. Since last year, several companies, including Circle, eToro, Bgin Blockchain, Chia Network, Gemini, and Ionic Digital, have been advancing IPO matters. Kraken has been restructuring its organization to meet regulatory requirements, with Coinbase serving as a typical example.
On one hand, Wall Street institutions are eager to seize the crypto bonus, while on the other hand, enterprises in Hong Kong are also eager to try. Compared to the U.S. crypto companies aiming for IPOs, institutions buying coins through ETFs with real money is slightly different; Hong Kong, as a financial center, is more cautious, with companies focusing on entity collaboration, targeting the RWA track. Following the launch of the Ensemble project by the Hong Kong Monetary Authority (HKMA), which initiated a tokenization sandbox pilot, the RWA track in Hong Kong has once again pressed the accelerator.
From the progress, the trend of major firms taking the lead is evident, with frequent activities in recent months. JD's blockchain technology, which has attracted attention for entering the stablecoin market, has begun forming a team. It previously posted multiple RWA-related job vacancies on recruitment websites such as Boss Zhipin and Liepin, hiring a director of asset management system products and a director of solutions to be responsible for the asset management system design, asset acquisition, and industrialization of new energy assets. Additionally, the blockchain has announced a partnership with licensed virtual bank Starling Bank to provide financial compliance support for JD's exploration of cross-border payment solutions based on stablecoins. According to Dr. Shen Jianguang, Vice President of JD Group, JD's stablecoin is a decentralized commercial issuance at the corporate level, minimally affected by macroeconomic fluctuations, aimed at further enhancing JD's global supply chain and cross-border payment capabilities.
JD is still organizing its structure, while Ant Group's data science progresses faster, with actual cases already implemented. Last year, Ant Group collaborated with green energy service provider Xunxin Energy to successfully complete China's first RWA case involving 200 million RMB based on photovoltaic physical assets, and subsequently pushed RWA projects with Conflux, Xunying Group, Sui, and other projects.
Outside the major firms, exchanges and institutions are also actively laying out plans. Hong Kong-based enterprise HashKey Chain successfully deployed the tokenized dollar money market fund CPIC Estable MMF, initiated and managed by China Pacific Insurance (Hong Kong), on-chain this March. Subsequently, the joint announcement with Bosera Funds (International) Co., Ltd. of a tokenization plan for HKD and USD money market ETFs has also received approval from the Hong Kong Securities and Futures Commission (SFC). To date, HashKey Chain has engaged in in-depth connections with over 200 institutions across various fields, including traditional financial institutions, asset management companies, tech enterprises, and Web3 native projects, reaching RWA on-chain cooperation intentions.
With the technical infrastructure becoming more complete, the supporting brokers are also keeping pace. Recently, Guotai Junan International announced that its wealth management-related business plan submitted in January covers tokenized securities types, including structured products linked to various underlying assets, funds recognized by the Securities and Futures Commission, unrecognized funds, and bonds. According to a circular issued by the Hong Kong Securities and Futures Commission (SFC) regarding intermediaries engaging in tokenized securities activities, the SFC sent a confirmation email on May 7, 2025, indicating that the business plan has been confirmed by the regulatory authority with no further issues. Just today, Tiger Brokers (Hong Kong) also announced the launch of a cryptocurrency deposit currency service, supporting virtual currency deposits, trading, and withdrawals.
Overall, whether it is U.S. crypto enterprises' IPOs or Hong Kong local enterprises advancing RWA, in the process of gradually legitimizing the crypto industry, both enterprises and institutions are showing a proactive attitude towards layout. However, due to regional differences, the modes of participation vary slightly.
In the United States, due to a clear regulatory environment and strong support from existing leaders, the trend shows that regulation remains unchanged while the market is active. The means of participation for institutions and enterprises are more straightforward, such as institutions aggressively buying ETFs, becoming major supporters of coin prices, or strategies borrowing to buy coins to construct new paradigms, triggering a surge, leading smaller listed companies to also attempt to break through using cryptocurrencies to gain heat and elevate stock prices. Large institutions like Block, PayPal, and Visa are entering the market with stablecoins to seize market share and build business matrices. The corporate response is also quicker, with Strategy included in the Nasdaq 100 and Coinbase entering the S&P 500, undoubtedly representing the entry of new buyers.
In the past year, Strategy's stock price has soared.
In contrast, Hong Kong's conservativeness is higher. Although the consistency and uniformity of policies are well maintained, Hong Kong continues to improve the regulation of virtual assets, steadily promoting the application and pilot of tokenization. However, clear and strict compliance requirements mean Hong Kong can only move forward cautiously, rather than charging ahead aggressively. Market power must be exercised within the policy context, leading enterprises and institutions to adhere to compliance principles. Despite the flourishing development of ETFs in Hong Kong, the voice is limited, with more institutions focusing on their core businesses and developing through sector extensions, with relevant businesses entering the fast lane, though profitability has yet to be fully realized.
Against this backdrop, attention to the mainland market's movements continues to rise, with the connectivity of on-site funds being the focus. Recently, there were even rumors that the mainland is expected to open a paper BTC spot ETF in the future, similar to non-spot delivery accounting transactions, akin to the paper gold model. This move could allow participation in cryptocurrency trading under the compliance control of funds to a certain extent while avoiding actual possession, and the trading would be transparent and traceable. Of course, rumors are just rumors. Considering the risks of cryptocurrencies to the financial market, especially under current regulations, feasibility can only be described as fanciful, but it also reflects the high expectations of the market for the opening of mainland funds.
It is foreseeable that as the mainstreaming of crypto assets increases, more enterprises will enter the market, with capital, attention, and resources further flooding in. This wave of institutional FOMO is just beginning.
