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Galaxy Digital, Multicoin, and Jump Crypto plan to raise $1B for Solana.
The SEC seeks public input on Canary's staked Injective ETF.
Citi warns that stablecoin yields may cause deposit outflows from banks.
The cryptocurrency market has been bustling with significant developments. Included in today's update are new proposals to the Solana treasury, regulatory developments around staked ETFs and warnings regarding the future of stablecoin yields. Remarkably, Galaxy Digital, Multicoin, and Jump Crypto are planning a $1 billion Solana treasury; the SEC is also seeking public comments on a staked Injective ETF. Meanwhile, Citi’s warning about stablecoin yields potentially draining bank deposits has sparked debate in the financial sector.
According to Bloomberg, digital asset firms Galaxy Digital, Multicoin Capital, and Jump Crypto are working to raise $1 billion for a Solana treasury. The companies have engaged Cantor Fitzgerald as the lead banker for the effort.
The plan includes acquiring a publicly traded entity to establish a digital asset treasury company focused on Solana (SOL). The Solana Foundation has reportedly endorsed the proposal. If completed, the initiative would create the largest corporate Solana reserve to date.
At present, Upexi holds the biggest treasury with over 2 million SOL valued at roughly $400 million. The DeFi Development Corporation follows with 1.29 million SOL worth around $240 million. Bitcoin miner Bit Mining also announced plans to raise between $200 million and $300 million to build a Solana reserve.
With SOL trading near $200 and ranking sixth by market capitalization, the $1 billion effort would more than double the size of the largest existing corporate holdings. Market observers note that the move could reinforce Solana’s position following its recovery from the FTX collapse.
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The U.S. Securities and Exchange Commission (SEC) requested public comments on Canary’s proposal for a staked Injective (INJ) exchange-traded fund (ETF). The filing, submitted on Aug. 11, gives the public 21 days to respond. The SEC then has up to 90 days to determine its next steps.
The proposed ETF would track the native asset of the Injective blockchain and trade on the Cboe BZX Exchange. Canary emphasized that INJ’s market cap, now over $1.4 billion, reduces the risks of manipulation. The filing also cited Injective’s global and continuous trading activity as factors supporting resilience against price distortions.
The SEC’s move indicates ongoing efforts to clarify its position on staking. Earlier this year, the agency stated that most proof-of-stake features do not fall under its remit and that some liquid staking activities do not involve securities.
In addition, other companies have recently submitted staking-related ETF proposals. VanEck announced a JitoSOL ETF and REX-Osprey partnered with JitoSOL to include staking rewards in its Solana fund. These developments highlight the rise of interest in staking-based investment products.
Meanwhile, the head of Future of Finance at Citi, Ronit Ghose, has cautioned that stablecoin yields might drive outflows in bank deposits similar to the boom of money markets in the 1980s. These remarks, as reported by the Financial Times, warn traditional banks.
During that earlier period, money market funds grew from $4 billion in 1975 to $235 billion in 1982, drawing deposits away from banks. Analysts suggest that stablecoin yields could replicate this trend, increasing funding costs for banks and raising credit prices for households and businesses.
U.S. banking groups, led by the Bank Policy Institute, have urged regulators to close what they describe as a loophole in the GENIUS Act. The current framework prevents stablecoin issuers from paying interest directly but allows exchanges or affiliated entities to offer yields. Banks argue this could disrupt credit markets and trigger up to $6.6 trillion in deposit outflows.
Representatives of the crypto industry organizations have opposed the revisions, saying that changes would tilt the market toward banks and decrease innovation. The U.S. Treasury has also expressed positivity toward stablecoins, with Secretary Scott Bessent citing stablecoins' role in reinforcing the US dollar as the global reserve currency.
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