Starknet debuts Bitcoin staking via wrapped BTC with 100 million STRK incentives, while Re7 Capital preps a BTC yield strategy.
Ethereum ETFs outpace Bitcoin with $546.9 million inflows, signaling stronger institutional demand, while Polkadot proposes a DOT-backed pUSD stablecoin.
Visa tests stablecoins for global payouts, Pi users face OKX withdrawal blocks, and Kazakhstan launches a sovereign crypto fund with BNB.
The crypto ecosystem is buzzing with developments as Starknet introduces Bitcoin staking, Ethereum ETFs outpace Bitcoin inflows, and Visa pilots stablecoin settlements. Meanwhile, Polkadot, Pi Network, and Kazakhstan unveil new initiatives, reflecting both opportunities and risks in digital assets.
Starknet has rolled out what it calls the first trustless Bitcoin staking solution on a Layer 2 network, enabling holders to earn rewards without losing custody of their BTC.
Instead of altering Bitcoin’s proof-of-work base layer, the protocol uses wrapped versions like WBTC, tBTC, Liquid Bitcoin, and SolvBTC, which can now participate in Starknet’s consensus secured by zk-STARK cryptography.
Backing the initiative, the Starknet Foundation allocated 100 million STRK ($12 million) in incentives to fuel BTCFi adoption.
StarkWare co-founder Eli Ben-Sasson hailed the integration as “two dreams converging, ZK technology merging with Satoshi’s vision,” arguing it would finally make Bitcoin useful in everyday transactions.
Institutional players are also joining. Re7 Capital plans a BTC yield strategy on Starknet in October, combining derivatives trading and DeFi yield strategies to provide sustainable BTC-denominated returns.
Also Read: Bitcoin Price Holds Strong Around $114,000 as Traders Eye $118,000 Resistance
For the first time in weeks, Ethereum ETFs recorded stronger inflows than Bitcoin ETFs. On September 29, US spot ETFs reversed a week of outflows with Ethereum ETFs attracting $546.96 million, edging past Bitcoin’s $521.95 million.
Ethereum: Fidelity’s FETH led with $202.18 million in inflows, followed by BlackRock’s ETHA at $154.20 million. Total Ethereum ETF assets now stand at $27.54 billion, 5.4% of ETH’s market cap.
Bitcoin: Fidelity’s FBTC drew $298.70 million, while Ark & 21Shares added $62.18 million. BlackRock’s IBIT, however, saw a rare $46.64 million outflow. Net assets across BTC ETFs reached $150.41 billion, equal to 6.6% of Bitcoin’s market cap.
The shift signals growing institutional interest in ETH, supported by rising staking yields and Layer-2 adoption.
The Polkadot community is voting on a proposal to launch pUSD, a native stablecoin backed entirely by DOT. Introduced by Acala’s co-founder Bryan Chen, the design uses overcollateralized debt positions and includes a savings mechanism to incentivize long-term holding.
Early voting has been positive, with over 75% approval and 1.4 million DOT ($5.6 million) already committed. Supporters argue that a chain-native stablecoin will strengthen liquidity and reduce reliance on centralized assets like USDT or USDC.
In the Polkadot community, a proposal to introduce a new native token called pUSD, entirely backed by DOT, is being contested. The design that co-founder Acala developer Bryan Chen introduced employs overcollateralized debt positions and has an incentivized savings mechanism to encourage long-term holding.
Results on early voting have been favorable, and above 75% support and 1.4 million DOT ($5.6 million) have already been pledged. According to the adepts, a chain-native stablecoin will provide a liquidity boost and decrease the dependence on centralized resources such as USDT or USDC.
The users of Pi Coin shared that they were not able to withdraw tokens on OKX, which triggered concerns about exchange practices. Some suppose that a sudden rise in traffic, or some technical glitch, could be the cause, but others suppose that OKX might be capping out withdrawals intentionally in order to manage the selling pressure.
It is not the first time that Pi has been subjected to such suspensions, and most recently opposed delays in February 2025 during its first listing. The network is also attempting to jumpstart itself with a series of events, such as its involvement in TOKEN2049 Singapore, the release of Version 23, and a worldwide hackathon in Q4.
Also Read: Is a Big Ethereum Price Rally Coming Due to $11 Billion in Shorts?
At SIBOS 2025, Visa announced a pilot program of a stablecoin where banks and other financial institutions could be pre-funded on cross-border transactions in USDC and EURC, treating them like cash equivalents. The project would ensure that treasury flows are modernized to cut the liquidity bottlenecks and currency risk.
Visa has already processed more than $225 million worth of stablecoins, which represents only a small part of its annual payment flows of $16 trillion. The pilot is the precursor to a greater rollout in 2026.
This follows a stated move by Swift to modernize cross-border payments through a blockchain-based settlement network with Consensys and more than 30 banks.
Kazakhstan has also announced the new Alem Crypto Fund, its first national crypto savings, and Binance was announced as the first beneficiary of the new fund. Overseen by the Qazaqstan Venture Group, the project will seek to establish a sovereign crypto reserve together with the gold and FX holdings of the country.
BNB’s global market cap of $138 billion was a factor in its selection, and the authorities mentioned that it is used in payments, governance, and transactions.
President Tokayev has pledged up to $1 billion for digital innovation and the rollout of the digital tenge by end-2025.
Kazakhstan’s crypto infrastructure is expanding rapidly. It launched Central Asia’s first spot Bitcoin ETF in August and legalized stablecoin payments for regulatory fees. The government also continues to attract mining activity, licensing 64 operations under a “70/30” grid-sharing model.
FAQs:
What is Starknet’s new Bitcoin staking feature?
It lets BTC holders stake wrapped Bitcoin on Layer 2 to earn rewards without losing custody.
How much inflow did Ethereum ETFs record?
Ethereum ETFs saw $546.96 million in inflows, surpassing Bitcoin ETFs at $521.95 million.
What is Polkadot’s pUSD proposal?
It’s a DOT-backed algorithmic stablecoin managed through Acala’s Honzon protocol.
Why can’t Pi users withdraw from OKX?
Users report restrictions, possibly due to platform glitches or attempts to ease selling pressure.
What is Kazakhstan’s Alem Crypto Fund?
It’s the country’s first national crypto reserve, starting with BNB as its inaugural asset in partnership with Binance.