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Bloomberg: GF Securities' Hong Kong subsidiary has launched daily interest tokenized securities denominated in U.S. dollars, Hong Kong dollars, and offshore renminbi, with the benchmark interest rate for the U.S. dollar token being the Secured Overnight Financing Rate (SOFR).
Insiders say that the tokenized securities will only be offered to institutional and professional investors, allowing them to generate interest from short-term idle funds, as well as to be used for conversions between other tokenized assets. The token is issued on-chain and traded on the licensed cryptocurrency exchange Hashkey in Hong Kong.

Deutsche Bank: The Mar-a-Lago agreement is outdated in reducing the U.S. deficit, and the 'Pennsylvania Plan' will take its place
Deutsche Bank strategist George Saravelos has designed a new framework called the 'Pennsylvania Plan' (the region where the U.S. White House and Treasury Department are located), and parts of it are already being implemented.

The 'Pennsylvania Plan' will involve two key pillars - reducing foreign investment and having domestic capital absorb U.S. Treasuries. The plan advocates for the U.S. to reduce its dependence on foreign investors purchasing U.S. Treasuries, instead having domestic institutional investors (such as pension funds, banks, and insurance companies) take on the supply of U.S. Treasuries, thereby reducing the impact of external capital withdrawals on U.S. Treasuries.

In Saravelos's view, the biggest weakness facing the U.S. economy is not the national debt, nor the massive goods trade deficit. On the contrary, foreign investors hold far more U.S. assets than U.S. investors hold foreign assets, which means the U.S. has become heavily reliant on foreign capital. If measures are not taken to change this situation, and if more foreign investors choose to shift their capital elsewhere, it could destabilize the U.S. Treasury market. He emphasized that since Trump's announcement of the 'Liberation Day' tariffs on April 2, foreign investors have begun to withdraw from U.S. assets, although it seems to be a gradual process. While the tariff policy has been temporarily suspended, the continuously worsening geopolitical uncertainty may continue to encourage foreign investors to bring more capital back home.

The other two auxiliary factors include a weakening dollar and a loosening Federal Reserve policy. The Federal Reserve faces increasing political pressure to cut interest rates, which could help ensure borrowing costs (at least short-term rates) remain low. Senior officials within the Federal Reserve have already hinted at a possible rate cut in July, in line with the policy directions of the White House and Treasury Department, aimed at lowering short-term rates, reducing government borrowing costs, and creating a favorable funding environment for demand for U.S. Treasuries. Additionally, promoting the exemption of Treasury leverage may enhance banks' ability to absorb more government bonds.

The U.S. government's advocacy for stablecoins may help implement the 'Pennsylvania Plan,' as stablecoins are typically backed by short-term U.S. Treasuries. If their circulation expands in the future, they will become a new source of demand for U.S. Treasuries. The capital behind stablecoins can be seen as replacing part of the foreign capital role, establishing a more stable internal buying presence.

Deutsche Bank: The Mar-a-Lago agreement is outdated in reducing the U.S. deficit, and the 'Pennsylvania Plan' will take its place
Deutsche Bank strategist George Saravelos has designed a new framework called the 'Pennsylvania Plan' (the region where the White House and Treasury are located), and some parts of it are already in practice.

The 'Pennsylvania Plan' will involve two key pillars—decreasing foreign investment and having domestic capital absorb U.S. Treasury bonds. The plan advocates for the U.S. to reduce its reliance on foreign investors for purchasing Treasury bonds, instead having domestic institutional investors (such as pension funds, banks, and insurance companies) take on the supply of Treasury bonds, thus minimizing the impact of external capital flight on U.S. Treasuries.

In Saravelos's view, the biggest weakness facing the U.S. economy is not the national debt and not the massive trade deficit. Rather, foreign investors hold far more U.S. assets than U.S. investors hold foreign assets, meaning the U.S. has become heavily reliant on foreign funds. If measures are not taken to change this situation, and if more foreign investors choose to move their funds elsewhere, it could undermine the stability of the U.S. Treasury market. He emphasized that since Trump announced the 'Liberation Day' tariffs on April 2, foreign investors have begun to withdraw from U.S. assets, although this appears to be a gradual process at the moment. While tariff policies have been temporarily suspended, the continuously worsening geopolitical uncertainties may continue to encourage foreign investors to bring more capital back home.

Two additional supporting factors include a weakening dollar and the Federal Reserve's easing policies. The Federal Reserve is facing increasing political pressure to lower interest rates, which may help ensure borrowing costs (at least short-term rates) remain low. Senior officials within the Federal Reserve have already hinted at a possible rate cut in July, in line with the policy direction of the White House and Treasury, aimed at lowering short-term rates, reducing government borrowing costs, and creating a favorable funding environment for Treasury demand. Additionally, pushing for the exemption of bank leverage on Treasury bonds may enhance banks' capacity to absorb more government bonds.

The U.S. government's advocacy for stablecoins may assist in implementing the 'Pennsylvania Plan,' as stablecoins are typically backed by short-term Treasury bonds. If their circulation expands in the future, they will become a new source of demand for Treasury bonds. The funds behind stablecoins can be seen as a substitute for some of the roles of foreign capital, establishing a more stable internal buying power.

#Market Hong Kong Guotai Junan International surged 60% on Wednesday, as the company recently received approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license to provide virtual asset trading services. Clients can directly trade cryptocurrencies (such as Bitcoin, Ethereum, etc.), stablecoins (such as Tether, etc.), and other virtual assets on the platform. Guotai Junan International can provide advice based on the trading services offered.

The Vice Governor of the Bank of Korea, Ryu Sang-dae, expressed hope to gradually introduce stablecoins. "It would be best to first allow strictly regulated banks to issue (Korean won-pegged stablecoins), and after accumulating experience, gradually expand to the non-bank sector." 🗒️ The ruling party Democratic Party, led by President Lee Jae-myung, proposed the 'Digital Asset Basic Act,' paving the legal way for the issuance of stablecoins in South Korea. The bill allows South Korean companies with a capital of 500 million won (approximately 368,000 USD) or more to issue stablecoins, provided that a reserve guarantee redemption mechanism is in place.

#News The People's Bank of China will work with the China Securities Regulatory Commission to study and promote RMB foreign exchange futures trading.
At the opening ceremony of the 2025 Lujiazui Forum, PBOC Governor Pan Gongsheng announced eight major financial opening-up measures.
1. Establish a trading report database for the interbank market. Collect and systematically analyze trading data from various financial sub-markets including interbank bonds, currency, derivatives, gold, and bills, to serve financial institutions, macroeconomic regulation, and financial market supervision.

2. Establish an international operation center for digital RMB. Promote the international operation and financial market business development of digital RMB, serving digital financial innovation.

3. Establish personal credit institutions. Provide financial institutions with diversified and differentiated personal credit products to further improve the social credit system.

4. Launch a pilot program for comprehensive reform of offshore trade finance services in the new Lingang area of Shanghai. Innovate business rules to support Shanghai's development of offshore trade.

5. Develop free trade offshore bonds. Follow the principle of "two ends outside" and international common rules and standards to broaden financing channels for "going global" enterprises and high-quality enterprises in countries and regions participating in the Belt and Road Initiative.

6. Optimize and upgrade the functions of free trade accounts. Achieve efficient integration of high-quality enterprises and foreign funds, enhance the level of liberalization and facilitation of cross-border trade and investment, and support Shanghai's high-level opening up to the outside world.

7. Innovate structured monetary policy tools in Shanghai as a pilot. This includes conducting blockchain letters of credit refinancing business in the shipping trade area, "cross-border trade refinancing" business, and expanding carbon emission reduction support tools, among other pilots. Actively promote the initial use of technology innovation bond risk-sharing tools in Shanghai to support private equity institutions in issuing technology innovation bonds.

8. Work with the China Securities Regulatory Commission to study and promote RMB foreign exchange futures trading. Promote the improvement of the foreign exchange market product series to better assist financial institutions and foreign trade enterprises in managing exchange rate risks.

The U.S. Senate passed the 'Guidance and Establishment of the U.S. Stablecoin National Innovation Act' (GENIUS) with 68 votes in favor and 30 against. According to the bill, stablecoins pegged to the dollar must hold an equivalent amount of short-term government debt or similar products as reserves and are subject to oversight by state or federal regulatory agencies in the U.S.

According to The New York Times: U.S. President Trump submitted his first public financial disclosure report during his term. The report shows that Trump earned $57 million through his family's cryptocurrency company, while other sources including guitars, sneakers, watches, and books brought him millions of dollars.

Bloomberg: Ant International will immediately apply for a stablecoin issuance license after the Hong Kong 'Stablecoin Regulation' takes effect in August, to strengthen the company's blockchain business and support its cross-border payment and fund management services. In addition to Singapore, the company also plans to apply for a license in Luxembourg.

David Sachs, the cryptocurrency chief of the White House, stated that China is only 3-6 months behind the United States in the field of artificial intelligence and warned that excessive regulation in the United States could harm innovation in the industry.

The Hong Kong SAR Government today designated August 1, 2025, as the implementation date for the "Stablecoin Ordinance."
The Secretary for Financial Services and the Treasury, Christopher Hui, stated: "Once the Ordinance comes into effect, the licensing system will provide appropriate regulation for relevant stablecoin activities, marking a milestone in promoting the sustainable development of Hong Kong's stablecoin and digital asset ecosystem."

Bank of America Weekly Fund Flow Data:
Global stock markets saw an outflow of $9.5 billion, marking the largest single-week outflow this year; outflows from the Japanese stock market reached $11.6 billion, setting a record for the largest single-week outflow in history, while emerging markets experienced the largest single-week inflow of the year; the US stock market saw outflows for the second consecutive week, and European stock markets have seen outflows for the seventh consecutive week.
The cryptocurrency market experienced an inflow of $2.6 billion, marking the largest weekly increase since January.

National Internet Information Office: Recently, the Internet Information Office, together with financial management departments, will legally handle a batch of accounts and websites that spread false information about the capital market, engage in illegal stock recommendations, and speculate on virtual currency trading.

JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other major U.S. banks are exploring whether to jointly issue stablecoins to address the increasingly fierce competition in the cryptocurrency industry. Negotiating parties include Zelle payment system operator Early Warning Services and the real-time payment network Clearing House.

The Legislative Council of the Hong Kong Special Administrative Region today passed the 'Stablecoin Regulation Draft'. The 'Draft' establishes a licensing system for the issuance of fiat stablecoins in Hong Kong and improves the regulatory framework for virtual asset activities in Hong Kong. After the implementation of the 'Stablecoin Regulation', anyone issuing fiat stablecoins in Hong Kong during the course of business, or issuing fiat stablecoins claiming to be pegged to the value of the Hong Kong dollar in or outside of Hong Kong, must apply for a license from the Financial Management Commissioner. Relevant individuals must comply with regulations concerning reserve asset management and redemption, including properly segregating client assets, maintaining a sound stabilization mechanism, and processing redemption requests from stablecoin holders at face value under reasonable conditions.

JPMorgan expects Bitcoin to significantly outperform gold for the remainder of 2025. “We expect the zero-sum game between gold and Bitcoin year-to-date will continue for the rest of the year, but favoring cryptocurrency-specific catalysts that will give Bitcoin more upside potential than gold in the second half.”
JPMorgan attributes Bitcoin's upward momentum to factors beyond falling gold prices, noting that the adoption rates of Bitcoin by businesses and governments are continuously increasing. More and more companies are acquiring Bitcoin as a strategic reserve asset. “As the list grows, other U.S. states may consider adding Bitcoin to their strategic reserves, which could become a more lasting positive catalyst for Bitcoin.”

COINBASE $COIN has been included in the S&P 500 index, and the stock price surged by 15%.

#Market Cryptocurrency continued to rebound, with Ethereum rising nearly 7% in one hour to 2,460 yuan per coin, and a 24-hour increase of 27%.

Bank of America: As of Wednesday of this week, U.S. stock markets saw an outflow of $9.3 billion, the largest outflow since May 2023 over a four-week period; Japanese and European stock markets experienced inflows for the fourth consecutive week, while emerging market stock markets saw outflows for the second consecutive week.
The cryptocurrency market saw an inflow of $51.9 billion, the highest in nine weeks, with the four-week inflow being the largest in three months.
The bond market saw an inflow of $14.1 billion.