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On Friday, Bitcoin was trading around the mark of $108,700 as significant developments at the corporate level and around the world changed the crypto environment. According to the G20 Financial Stability Board (FSB), there were serious loopholes in its regulations, leading to a four trillion dollar market explosion.
Babylon Labs launched a trustless Ethereum-based DeFi system, and Nasdaq-traded Zeta Network has just completed a $230 million Bitcoin-secured capital issue. All these events created an intricate image of a chance and a warning in digital finance.
The Financial Stability Board of the G20 issued a warning that significant loopholes still exist in the regulation of cryptocurrencies by countries. Although the global crypto market increased to a total of $4 trillion last year, it does not have uniform oversight. The current market of these stablecoins, which is worth around $290 billion, is only regulated in several jurisdictions.
FSB Secretary General John Schindler urged the world to come together and bridge such regulatory gaps. He mentioned the simplicity of transactions across borders and the increasing integration of crypto and conventional finance. The FSB warned that as long as risks are low, they might increase with increased adoption.
The policy will promptly arrange for the organization of markets in need of structure. Regulatory fairness is now a question that investors are considering in terms of future liquidity and future innovation. Are these loopholes that will define the rate at which crypto is being integrated into the world?
Amid these regulatory concerns, Babylon Labs launched a new trustless DeFi mechanism allowing users to borrow on Ethereum using Bitcoin as collateral. The system operates without centralized bridges or intermediaries, offering users greater control over their assets.
Powered by BitVM3 technology, the mechanism secures BTC within cryptographically verified vaults. This innovation enables seamless interoperability between Bitcoin and Ethereum, two of the world’s largest blockchain networks. An experimental version, VaultBTC, is currently being tested on the Morpho lending protocol.
While largely trustless, analysts note that the system’s liquidation still involves authorized liquidators and trusted oracles. Nonetheless, the development marks another attempt to integrate Bitcoin into decentralized finance. Expanding BTC’s use beyond payments could strengthen long-term demand, especially as the asset steadies near $108,690.
In parallel, Nasdaq-listed Zeta Network completed a $230.8 million private share sale, accepting Bitcoin (BTC) and SolvBTC, a wrapped BTC token from Solv Protocol. The firm issued new shares and warrants while adding Bitcoin-based assets to its treasury.
Solv Protocol CEO Ryan Chow stated that more public companies are now exploring ways to hold and yield from Bitcoin. He referenced a growing interest in BTC yield products such as Coinbase’s Bitcoin yield fund and BlackRock’s proposed Bitcoin income ETF.
The successful Bitcoin-backed raise improved sentiment among investors. Zeta’s move was seen as a strong indication of deepening institutional adoption. As a result, Bitcoin’s price steadied around $108,700, showing market resilience amid volatility and ongoing regulatory debate.
Bitcoin’s steadiness near $108K reflects a market balancing between innovation and regulation. The G20’s warning on policy gaps signals a global need for cohesive oversight, while Babylon Labs’ Bitcoin DeFi launch expands BTC’s utility beyond payments.
Read More: Crypto Prices Today: Bitcoin Price Slips Below $109,000, Ethereum at $3,923, Solana Down 3.58%
