BlackRock Brings Money Market Funds Onchain for Stablecoin Reserves

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In Today's Note

• July ISM manufacturing rose to 55.6 from 53.3, above the 54.0 consensus and the strongest since May 2022, with the employment sub-index expanding for the first time in 33 months. The Dow closed at a record 53,178.41 and the Nasdaq gained 2.1%.
• BlackRock launched two onchain money market products for institutions and stablecoin reserves, and Mastercard closed its acquisition of BVNK. Decentralised exchanges now account for a record 24% of spot volume against centralised venues, up from 17% a year ago.

Market Snapshot: Overnight Moves

Macro & Markets

• US equities closed sharply higher on Monday, with all three major indices rallying and the Dow closing at a fresh record.
• The Dow Jones Industrial Average climbed 693 points, or 1.32%, to end at a record high of 53,178.41. The S&P 500 gained 1.48% to 7,600.50, bringing the index within striking distance of its own all-time high, while the tech-heavy Nasdaq Composite led the majors with a 2.1% gain to 25,913.90.
• Crypto has somewhat tracked the broader risk-on rally, with BTC recovering to $63,518, up roughly 1.7% over the past 24 hours, while ETH climbed 1.0% to $1,856.

• The move was driven by a combination of continued oil price relief following weekend developments in the Middle East, an overnight drop in market-implied probability of a 25bp Fed rate hike at the September FOMC meeting from 67.2% to 64.7%, although these still remain elevated compared to the 55.8% figure a week earlier, and a run of positive corporate earnings.
• Megacap tech stocks outperformed, with Amazon rising 4.6% to cross a $3T market capitalization for the first time, Microsoft rallying 4.9%, Meta gaining 6%, Alphabet up 4.9%, Nvidia adding 2.9%, and Tesla rising 3.5%. Boeing was another notable mover, jumping 7.9%.

• The July ISM Manufacturing PMI, released Monday morning, came in significantly stronger than expected with the headline print rising to 55.6 from 53.3 in June, well above the 54.0 consensus and the highest reading since May 2022.
• Production surged to 58.5, the fastest pace since November 2021, and new orders climbed to 56.7.
• The Employment sub-index rose to 52.8, marking its first month in expansion since January 2025 and ending 33 consecutive months of contraction.
• The Prices Paid index eased to 71.1 from 73.0, though it remained above 70 for a sixth straight month, keeping inflation pressures very much in view.

• The yield on the 10-year Treasury note fell to 4.7% on Monday, retreating slightly from Friday's 4.74%, which had been its highest close since January 2025.
• Reports also emerged that Warsh is considering reducing the number of FOMC policy meetings per year from the current eight.

• Oil remains below weekend highs following Sunday's collapse, although they are slowly tracking back up, with Crude Oil up 2.24% to $82 and Brent up 2.68% overnight, now trading around $86 respectively.
• This comes as Iran's Foreign Ministry has stated that the country is not currently negotiating with the United States, and that its talks are instead with Oman regarding a "temporary" corridor for shipping through the Strait of Hormuz.
• Trump responded on Truth Social, calling Iranian leadership "unbelievably duplicitous" and insisting that talks were happening "whether Iran wants to admit it or not".
• Overnight, the UK Maritime Trade Operations reported that another tanker had been struck by a projectile roughly 20 nautical miles northeast of Al Khasab, Oman, on the southern side of the strait, highlighting the fragility of the de-escalation narrative.

• Higher oil prices driven by the Iran-US conflict have supported major oil companies' earnings.
• BP reported before the market opened today, posting Q2 underlying replacement cost profit of $5.7 billion, more than double the $2.35 billion earned a year earlier and comfortably ahead of the $5.0 billion consensus. The company also raised its interim dividend by 4% to 8.66 cents per share.
• Friday saw ExxonMobil report Q2 net income of $14.5 billion, more than double the prior year's figure, and Chevron post $12.1 billion, up 385% year-on-year.
• Trump lashed out at both US majors from the Oval Office on Monday, telling reporters, "They're making too much money. Okay, based on a shortage, they're making too much money. I don't like it, and I should be the last one to say because I'm a big free enterprise guy. Nobody bigger. And you know, you're going to see oil when we're finished with Iran. You're going to see the prices drop through the floor. But they made too much money, too much money. Chevron, too much money. Exxon Mobil, too much, too much money."
• Trump also attacked Chevron CEO Mike Wirth by name on Truth Social, criticising him for failing to credit the administration for the sector's performance.

DeFi / Web3 / Altcoins / Crypto3

• NEAR co-founder Illia Polosukhin has proposed a protocol-owned sovereign fund to support the network’s long-term financial stability.
• Seeded with roughly 30M NEAR ($53M) the fund would generate yield to finance validators, security and other essential ecosystem services.
• The model could reduce NEAR’s reliance on token inflation by turning its treasury into a recurring source of income. If successful, it may eventually support lower emissions and a fixed token supply.
• The proposal is currently open for community feedback and has not yet been approved.

• Proof of Attendance Protocol is winding down after more than five years of creating digital badges for events, conferences and online communities.
• Nearly 7.6M POAPs were issued by over 46,000 organizations and creators, including Coinbase and American Express.
• Co-founder Isabel Gonzalez cited crypto’s challenging funding environment and the difficulty of building a sustainable business without compromising the project’s original values.
• While the company will cease operations, previously minted POAP collectibles are expected to remain accessible and tradable onchain.

• Kalshi CEO Tarek Mansour has rejected New York’s claim that the platform’s event contracts constitute illegal gambling.
• The state is seeking at least $36B in damages, while Mansour argues Kalshi operates more like Nasdaq: matching opposing traders and collecting transaction fees rather than betting against customers.
• Mansour also compared Kalshi’s regulatory battles to those once faced by Uber and Airbnb, portraying the company as a disruptive challenger to established industries.
• Despite Kalshi’s federal registration, several states have challenged its operations, with sports-related contracts remaining a major source of trading activity.

• BlackRock has launched two onchain money market products designed for institutional investors and stablecoin reserve management.
• Both will invest primarily in cash, short-term U.S. Treasuries and Treasury-backed overnight repurchase agreements.
• BSTBL introduces an Ethereum-based share class for an existing BlackRock liquidity fund, allowing transfers between approved wallets.
• BRSRV is a new multi-chain vehicle built for stablecoin issuers and other digital-asset institutions, with dividends reinvested daily.

• Mastercard has completed its acquisition of stablecoin infrastructure provider BVNK, strengthening its connection between blockchain-based assets and traditional payment networks.
• The final price was not disclosed, although the deal was previously valued at up to $1.8B.
• BVNK’s technology will help banks, fintech firms and businesses expand stablecoin-powered payments, settlements, payouts and treasury operations.
• The company will continue serving existing clients while gaining access to Mastercard’s global reach and card capabilities.

• Decentralized exchanges now account for a record 24% of spot crypto trading relative to centralized platforms, up from 17% a year ago.
• The milestone comes as CEX activity approaches a 12-month low amid weaker market interest and growing competition from prediction markets.

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