Appold Market Watch - Week ending 4 April 2025

Market Update & Industry News - Week ending 4 April 2025

🔷 BlackRock has secured registration with the UK FCA to operate in the digital asset sector, allowing it to act as an arranger for iShares Digital Assets AG, facilitating the issuance of Exchange Traded Products (ETPs) tied to digital assets. The approval, part of a stringent regulatory framework, enables BlackRock to support ETP activity but restricts direct customer onboarding without further FCA approval.

 Appold view: The focus on infrastructure and ETPs, not the retail sector, demonstrates a maturing institutional landscape and may encourage UK regulators to further refine frameworks that support responsible, large-scale market participation. 

 🔷 Digital asset exchange Kraken has secured restricted dealer status in Canada, allowing it to continue offering digital asset trading under regulatory oversight. The firm enhanced its compliance framework to meet Canadian standards and appointed a new North America head, Cynthia Del Pozo. Kraken also introduced free Interac e-Transfer deposits as it expands its presence and user base in Canada.

 Appold view: Kraken’s regulatory alignment reflects a growing divide between compliant, institutionally minded platforms and those unable or unwilling to meet national standards. As Canada tightens its digital asset regime, exchanges with robust infrastructure and a local focus should be better positioned to gain market share and user trust.

🔷 The FDIC has reversed its 2022 policy requiring banks to obtain prior approval before engaging in digital asset activities. This aligns with broader regulatory shifts in the U.S. and aims to support responsible innovation. Banks may now proceed without pre-approval, provided they maintain strong risk management and compliance standards.

Appold view: The FDIC policy reversal marks a shift for US banking activity, under a more pro-crypto US administration. This should allow a faster rollout of token services and is likely to create a deeper integration between traditional finance institutions and crypto services.

🔷 The HBAR Foundation Foundation, backer of the $7.2B Hedera network- the 22nd-largest cryptocurrency - has partnered with Tim Stokely’s Zoop to bid for TikTok, which must be sold by Chinese parent ByteDance to avoid a U.S. ban. Their Web3 proposal aims to give creators greater control and revenue participation through tokenisation and decentralised platform governance. Other bids include Amazon, Oracle, and investor groups.

Appold view: The former OnlyFans founders certainly have a better track record and experience than the US blue-chip corporations that are also bidding, but a winning bid is probably unlikely without a close personal relationship with Trump’s inner political team. Nonetheless, Hedera and ZOOP’s bid for TikTok signals a strategic move to integrate Web3 technology and principles into mainstream applications.

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