Tether New US Stablecoin & Circle IPO Delay

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Good Morning.

The market puked again over the weekend as we processed the craziness of Trump’s tariffs. There’s more coming on April 9th, so we better brace ourselves to see whether this will be a giant wick back to the green, or potentially, the worst drawdown since COVID-19.

In Today's Email:

• What Matters: Tether New US Stablecoin & Circle IPO Delay 💵 

• Product: Codex’s Enterprise-Focused Stablecoin Blockchain 🏗️ 

• Charts: ETH Fees Hit Record Lows, DeFi Revenues Sharp Drop 📉 

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WHAT MATTERS

Tether Eyes New US Stablecoin, SEC Clarifies Rules & Circle IPO Delay

State of play: Tether is preparing for a future where its flagship stablecoin, USDT, may no longer be viable in the US or EU due to tightening regulations. Paolo Ardoino stated that the company is open to launching a new US-domiciled stablecoin.

• Ardoino emphasized that USDT will remain focused on emerging markets, while the new stablecoin could serve the US financial system's regulatory demands.

• Despite criticism over its lack of full audits, Tether claims it is working with top accounting firms.

• Tether also claims that it is actively investing in compliant stablecoin infrastructure across Europe.

In a significant regulatory update, the US SEC clarified that “covered” stablecoins—those pegged to the USD and backed by reserves, such as USDT and USDC—are not considered securities.

• As a result, entities involved in minting or redeeming these stablecoins are not required to register their transactions with the SEC.

Meanwhile, Circle, the issuer of the USDC stablecoin, is reportedly delaying its planned IPO due to economic instability triggered by President Trump’s new tariff policies.

• The recent market downturn, which wiped out over $2T in US stock value, has prompted multiple companies to reconsider their IPO timelines.

What’s next: Tether’s potential pivot to a US-compliant stablecoin signals a strategic dual-track approach in its product roadmap.

For builders and investors: Stablecoin is facing its commoditization moment; it will be paramount to see how some of these founders find moats and unfair advantages, otherwise their lunch will be eaten by bigger players.

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PRODUCT OF THE WEEK

Codex’s Enterprise-Focused Stablecoin Blockchain

Codex is developing a purpose-built Ethereum L2 blockchain tailored specifically for stablecoin use in enterprise environments.

• Built on the Optimism tech stack, the platform is designed to address key institutional pain points such as user experience friction, compliance, cost, and interoperability.

• The product emphasizes privacy for select transactions, low and stable fees, and seamless integration with existing company workflows.

• Codex aims to provide a reliable, regulation-ready infrastructure for businesses looking to adopt stablecoin-based financial tools, distinguishing itself from the fragmented tools currently in the crypto space.

Other cool products:

• BNBXBT, a real-time market intelligence platform.

• Hanji Protocol, an on-chain CLOB DEX on Etherlink.

• Eco Portal, a stablecoin transfers platform across blockchains.

• MARBLEX, a next-generation gaming and interactive ecosystem.

CHARTS OF THE WEEK

Ethereum Fees Hit Record Lows

State of play: Ethereum transaction fees have fallen to their lowest levels in years, now generating less than $500,000 in daily revenue, following the implementation of EIP-4844 and increased Layer 2 usage.

• While transaction volume remains steady at around 1.2M per day, the fee drop signals a shift in network economics.

• Lower costs have improved accessibility for users and enabled smaller DeFi transactions, but they also raise concerns about long-term validator incentives.

• Despite maintaining high utility in stablecoins and real-world assets, Ethereum’s price has underperformed compared to Bitcoin in 2025.

Our take: Ethereum is clearly facing its Cosmos problem. While the underlying technology itself is always actively utilized, it doesn’t necessarily means that value and mindshare will accrue to the ETH as an asset.

DeFi Revenues Drop Sharply in March

State of play: DeFi protocols across Ethereum, Solana, and BNB Chain saw revenue declines of over 50% in March, driven by a broader slowdown in onchain activity and trading volumes.

• Pump.fun and Raydium dropped 55% MoM, while Ethereum protocols such as Aave, Curve, and Lido saw a 52% decline. PancakeSwap also fell 54%.

• MakerDAO, now operating as Sky, was the only major protocol to post revenue growth, increasing 11% in March.

• The downturn has weighed heavily on DeFi tokens, with the GMDEFI index down 40% year-to-date.

Our Take: Volume in DeFi is often reflexive as a large percentage of them is denominated in the underlying chain’s own token.

QUICK BITES

• Circle considers IPO delay.

• Bitcoin dips below $80,000 amidst tariff selloff.

• Ethereum transaction fees drop to historic lows.

• DeFi revenues plunge in March as onchain activity slows.

• Samczsun steps down from Paradigm to focus on SEAL 911.

• Hong Kong allows crypto staking for licensed platforms and ETFs.

• Tether may launch a new stablecoin if US regulators push out USDT.

• Acting SEC Chair Uyeda directs staff to review statements on crypto risks.

• PumpFun reopens livestreaming to 5% of users with stricter moderation rules.

• SEC declares that 'covered' stablecoins like USDT and USDC are not securities.

NOTEWORTHY READS & MEME

• Ignas’ read on how crypto companies go bankrupt.

• Rosie’s read on why projects with no products raise more money.

• Janani’s read on how to drop TGE marketing campaigns that slap.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.