Crypto Garden
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๐Ÿก Your daily garden for trending crypto news and market insights. Stay ahead, let's grow crypto knowledge together!

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โš ๏ธ Fidelity plans Ethereum staking for $898M FETH fund

๐Ÿ”– Fidelity has moved to add Ethereum staking and quarterly cash distributions to its $898 million Fidelity Ethereum Fund, with the trust allowed to stake as much as 100% of its ETH under normal conditions. The U.S. Securities and Exchange Commission filing submitted on Aug. 11 shows that Fidelity amended the fundโ€™s registration statement to include staking, allowing FETH to earn rewards from ether already held by the trust. Fidelity plans to begin staking as soon as practicable after the prospectus takes effect.

โญ๏ธ Under the proposed structure, Fidelity would not have to stake a minimum amount of the fundโ€™s ETH. While up to 100% could be committed to validators during normal conditions, some ether would remain available when needed for redemptions, fund expenses, distributions, and liquidity management. The filing defines normal conditions as periods when Ethereum is operating without material disruption, redemption activity remains within expected ranges, and no extraordinary event requires Fidelity to hold additional ETH outside staking.

๐Ÿ“ฃ Once Fidelity decides how much ETH can be staked, the fundโ€™s custodians would work with selected node operators to place the assets into Ethereum validators. The custodians would retain control of the private keys, while the node operators would handle the validator infrastructure needed to participate in Ethereumโ€™s proof-of-stake network.
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Whitechain is relaunching as a distribution-first Ethereum L2, built on the OP Stack and supported by W Group, a global fintech ecosystem reaching 40M+ users worldwide, alongside WhiteBIT, a cryptocurrency exchange with 10M+ users.

The relaunch introduces three tracks for Web3 projects at different stages:

โ€ข Builder Program โ€” for early-stage teams, with funding of up to $300K per eligible project and support from testnet to first users.
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Starting August 18, Whitechain opens its public testnet, funding applications and migration track to builders and protocols.

Build, migrate or expand on Whitechain: whitechain.io/builders
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โ€ผ๏ธ The CLARITY Act wonโ€™t move markets

๐Ÿ”– Forget short-term price charts โ€“ Washingtonโ€™s digital asset framework is the legal authorization that conservative wealth managers have been waiting for before they can put trillions to work. Everyone seems to be watching the CLARITY Act for the same thing. From retail traders to institutional giants, people are waiting for the green light that confirms Washington has clarified the market. Legislation doesnโ€™t move markets through a single, uniform mechanism.

โ˜„๏ธ The GENIUS Act has limitations on a single-asset framework for payment stablecoins. CLARITY works at a different layer: a horizontal market-structure bill covering how digital assets are classified, who regulates them, and who is allowed to custody and trade them.

โ‰๏ธ Thatโ€™s why its success shouldnโ€™t be benchmarked against a single price chart. The metric that matters here is the slower signal underneath: custody mandates being written, treasury policies being rewritten, allocation committees granting their first approvals.

โš ๏ธ Thatโ€™s the real story. The CLARITY Act is fundamentally a legal permission structure. By handing institutional wealth managers and world-class operators the regulatory green light they need to enter the room, this law achieves something more durable than a market rally. It moves the people who build markets, not just the capital.
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๐Ÿš€ WBT Hits New All-Time High, Up Nearly 14% From Its Previous Peak

WhiteBIT coin (WBT) reached $73, rising from its previous ATH of $64.11 in December 2025, and is currently trading at around $72. The milestone comes amid Whitechainโ€™s relaunch as a distribution-first Ethereum Layer 2 and W Groupโ€™s continued growth to over 40 million users globally.

WBTโ€™s full supply was unlocked in 2026, while its deflationary mechanism remains active. Regular burns, funded by 33% of WhiteBITโ€™s trading-fee income and 5% of income from other exchange activities, are designed to reduce the supply until 200 million WBT remain in circulation.
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๐Ÿ”” Kalshi ruling puts CFTC prediction rules at risk

โš ๏ธ A federal appeals court ruled on Aug. 28 that Kalshi had not shown Nevadaโ€™s regulation of its sports-event contracts was likely preempted by federal commodities law. The unanimous decision allows Nevada gaming authorities to enforce state requirements while litigation continues.

โš ๏ธ Kalshi argued that its sports-event contracts qualified as swaps under the Commodity Exchange Act. Because Kalshi operates a CFTC-regulated designated contract market, it said federal jurisdiction displaced Nevadaโ€™s gaming laws. The Ninth Circuit rejected that argument at the preliminary-injunction stage. It found that the contracts likely fell outside the applicable meaning of โ€œswapโ€ because they functioned as sports bets. The panel consequently rejected Kalshiโ€™s express, conflict and field-preemption arguments.

๐Ÿ“ฃ Circuit Judge Ryan Nelson wrote that โ€œthe CFTC is not a national gambling regulator.โ€ The court said Kalshiโ€™s broader interpretation lacked a limiting principle and did not fit the surrounding statutory framework. That prediction extends beyond the courtโ€™s direct holding. The opinion said Kalshiโ€™s broad interpretation of โ€œswapโ€ โ€œwould raise concerns under the major-questions doctrine.โ€ It did not hold that the doctrine categorically prevents the CFTC from regulating prediction markets.
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๐Ÿ”” Ethereum price breakout hinges on a close above $2,535

โžก๏ธ Ethereum price hovered around $2,500 on Sep. 9 as buyers defended short-term support, but weakening momentum and negative capital flows kept a breakout above $2,535 out of reach. Ethereum price traded near $2,486 at the time of writing on Sep. 9 after briefly rising above $2,520 earlier in the session. Price remained almost unchanged on the daily chart as buyers and sellers competed around the psychological $2,500 level.

๐Ÿ”– The narrow move followed several days of consolidation after ETH recovered from its early-September low near $2,430. Buyers have repeatedly stepped in around $2,478โ€“$2,485, but each attempt to extend the recovery has met selling pressure between $2,525 and $2,535.Spot Ethereum exchange-traded fund outflows have reduced one source of institutional demand during the consolidation. Broader risk appetite has also remained weak ahead of the Federal Reserveโ€™s Sep. 15โ€“16 policy meeting, while higher energy prices linked to the U.S.-Iran conflict have added to inflation concerns.

โš ๏ธ Regulatory uncertainty ahead of the expected U.S. Senate procedural vote on the Clarity Act on Sep. 15 has given institutional investors another reason to limit exposure. Ethereum has consequently struggled to separate from the wider risk-off tone across the crypto market.
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โžก๏ธ Hong Kong man loses HK$13 million in fake crypto investment app scam

๐ŸŒ A Hong Kong man in his 70s has lost more than HK$13 million ($1.67 million) after a self-described cryptocurrency investment expert contacted him through WhatsApp and directed him to a fake trading app. The latest case began when the elderly man received an unsolicited WhatsApp message from someone claiming to be a cryptocurrency investment expert from Singapore. The person introduced him to what was presented as a crypto platform offering favorable exchange rates, low fees and withdrawals at any time.

โ€ผ๏ธ Following the instructions he received, the man opened a cryptocurrency wallet and purchased Tether (USDT) and Ethereum (ETH). He was then told to download an investment application supplied by the scammer and transfer the cryptocurrency to designated wallet addresses as investment capital.

๐Ÿ“ฃ Seeing his account balance rise inside the app, the victim became less suspicious and continued sending more cryptocurrency to the wallets provided by the scammer. The fraud only became clear when he tried to withdraw his funds and was repeatedly prevented from doing so under different pretexts. By the time the victim realized the investment platform was fraudulent, his losses had exceeded HK$13 million.
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๐Ÿ“Œ Toyosa adds BTC alongside USDT for Toyota purchases

โš ๏ธ Toyosa has introduced Bitcoin as a payment option for Toyota vehicle purchases in Bolivia, expanding its digital-asset checkout service one year after launching USDT payments. Eju TV reported that the company unveiled the Bitcoin service on Sept. 18 at Expocruz 2026 in Santa Cruz, where Toyosa said customers could now choose BTC alongside bolivianos, U.S. dollars and Tetherโ€™s USDT when purchasing a Toyota.

๐Ÿ“ฃ BitGo confirmed the arrangement on Sept. 20, saying BitGo Bank & Trust supplied the institutional-grade digital asset wallet infrastructure behind Toyosaโ€™s Bitcoin payment service. Its event calendar places the company at Expocruz from Sept. 18 through Sept. 21, providing separate confirmation of its presence in Santa Cruz during the launch. Toyosaโ€™s Bitcoin service follows a crypto-payment system introduced at Expocruz one year earlier. In September 2025, Toyosa worked with BitGo, Towerbank and Tether to let customers purchase vehicles, parts and services using USDT.

๐Ÿ”” Toyosaโ€™s existing online payment page still describes the USDT workflow. Customers first obtain a quotation, select a supported blockchain network and scan a QR code from a crypto wallet. The page lists Ethereum and Tron among supported USDT networks and identifies Towerbank as the financial partner and BitGo as the blockchain technology provider. The public page reviewed on Sept. 20 had not yet been updated with a separate Bitcoin checkout guide, even though Toyosa and BitGo had announced that BTC purchases were available. Neither company had publicly disclosed supported Bitcoin wallet types, confirmation requirements, exchange-rate methodology or whether customers face transaction limits.
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๐Ÿ“Œ Ethena takes USDe basis trade into tokenized US equities

๐Ÿ”– Ethena has added tokenized U.S. equities and equity perpetual futures to the basis trading strategy used for part of USDeโ€™s backing, taking a funding model previously centered on crypto markets into listed stocks. According to a statement shared with cryptomedia, Ethena will use Binanceโ€™s bStocks as the spot side of the trade while taking offsetting positions through equity perpetual futures on the exchange.

โญ๏ธ The structure follows a framework previously approved by the Ethena Risk Committee for adding tokenized equity basis trades to the protocolโ€™s allocation strategy. Ethena has historically used a delta neutral approach in crypto markets, pairing asset exposure with derivatives positions intended to hedge movements in the underlying asset.

๐Ÿ“Š Under the new setup, bStocks will provide tokenized equity exposure while Binanceโ€™s corresponding perpetual contracts will provide the hedge. The strategy seeks to capture the difference between the spot and perpetual markets without relying primarily on the direction of the underlying stock.
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โญ๏ธ Michael Saylor says Strategy and Strive can grow together

๐ŸŒ Michael Saylor has argued that Strategy and Strive can compete for investor capital while helping each other expand the market for Bitcoin-backed preferred securities. Under Saylorโ€™s terminology, Bitcoin represents โ€œDigital Capital,โ€ preferred securities such as Strategyโ€™s STRC and Striveโ€™s SATA represent โ€œDigital Credit,โ€ while MSTR and ASST sit in what he calls the โ€œDigital Equityโ€ category. The labels form part of Saylorโ€™s own framework and are not formal regulatory asset classes.

๐Ÿ“ฃ A 0.1% allocation from either pool would equal roughly $160 billion. Michael Saylor used that comparison to argue that Bitcoin treasury companies are competing mainly against much larger traditional equity and fixed-income markets, not only against one another. He wrote that Strategy and Strive may compete for the same individual investment, but a new investor learning how to assess one Bitcoin-linked preferred security could become more comfortable evaluating another. Saylor said several credible issuers could bring more research, trading liquidity and institutional attention to the category.

โš ๏ธ The two companies remain separate businesses with different securities, liabilities and management decisions. Strategy issues STRC, while Strive issues SATA. Both are perpetual preferred securities, but their terms and dividend schedules differ. Strive said the purchase extended its SATA dividend reserve to 18 months, consisting at the time of 12 months of cash and another six months represented by STRC at prevailing market prices. The company described STRC as part of its reserve strategy, while stressing that market values can change.
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๐Ÿ“Š Visa finds 46% in Asia Pacific may use stablecoins by 2031

๐Ÿ“ฃ Stablecoin interest has moved well ahead of actual use across Asia Pacific, with 46% of surveyed consumers saying they are likely to use the tokens within five years compared with 16% who used them during the past year. The research found strong interest in using stablecoins for online purchases, travel, overseas shopping and moving money across borders. Yet the survey showed a large knowledge gap, with only 6% of respondents demonstrating what Visa described as an accurate understanding of how stablecoins work.

โญ๏ธ Across the 14 markets, 46% of respondents said they were likely to use stablecoins during the next five years. Only 16% reported using them during the previous 12 months. Visa did not disclose in its release what those existing users had used stablecoins for. The 16% figure could therefore include trading, transfers, payments or other cryptocurrency activity and should not be treated solely as consumer payment adoption.

โ€ผ๏ธ Cross-border transfers produced one of the strongest future-use readings. Around 49% of respondents said they thought stablecoins could become a common method of moving money between countries within five years. Visa Head of Digital Currencies for Asia Pacific Nischint Sanghavi said consumers were starting to consider stablecoins for โ€œonline purchases, travel and cross-border transfers.โ€ The company views those uses as potential extensions of existing payment behavior.
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๐Ÿ”” Can DATA Network bring lasting activity to Sui?

๐Ÿ“ฃ DATA Network plans to retire its independent chain and run its AI training data registry on Sui, with Walrus handling files. Sui Foundation is investing $30 million in the network. A registry that its backers say already records millions of receipts daily could bring activity to Sui; how much of that translates into recurring SUI demand remains an open question.

โญ๏ธ Sui Foundationโ€™s October 12 announcement  says Trace, a rights registry for AI training data, is joining its stack. Walrus will store encrypted original files and Sui will record programmable rights and settlements. DATA Networkโ€™s own chain will eventually close. The foundation says its $30 million commitment makes it the largest institutional holder of the DATA Network, alongside PIP Labs and the DATA Foundation. The statement does not publish a completed migration date or a dollar amount of fees the business expects to pay on Sui.

โš ๏ธ Trace registers a data contribution, its origin and the rights attached to it. The foundation says the system has processed more than 250 million contributions since a June launch and averages over 3 million receipts a day. Applications named in the announcement include Kled, Numo and Oto. Kled is described as an opt in human data marketplace with more than 1.5 billion records being onboarded. Those are participant supplied operational claims; the release does not contain an independently audited breakdown by customer, chain, fee or paying AI lab.

๐Ÿ”– DATA Foundation says Trace settles payments to contributors when their data is licensed. A nurseโ€™s consented account, a dashcam clip or a factory workerโ€™s demonstration might be recorded as training material with use rights. The registry entry is not necessarily the complete source file. Its design separates a claim about who supplied data and who may use it from storage of the bytes. Sui and Walrus are meant to handle those parts after migration.
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Uptober, they said.

The market isn't convinced.
Bitcoin outperforming gold and the S&P 500 in 2026: 19.5%.
The S&P: 66.5%.
China unbanning Bitcoin by 2027: 2.4%.

So, bull or bear on that 19.5%? ๐Ÿ“ˆ

๐Ÿ”ฎ We track these prediction markets in our Telegram: which numbers are moving, which ones look wrong, and where the crowd is split.
Come argue with the odds
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โญ๏ธ BlackRock wants tokenized funds to back traditional Wall Street trades

๐Ÿ“ฃ BlackRock has identified the use of tokenized investment funds as trading collateral in traditional financial markets as a potential next application for blockchain technology, building on existing arrangements that already allow institutional crypto traders to pledge tokenized fund holdings. Dan Maley, BlackRockโ€™s head of cash management for Asia Pacific, said the firmโ€™s tokenized funds are already being used as collateral in digital-asset markets. Extending that capability into conventional financial markets remains more complicated, although the asset manager sees opportunities for investors to transfer fund holdings without first redeeming them for cash.

๐Ÿ”” The development moves BlackRockโ€™s discussion beyond issuing digital representations of traditional investment products. Its focus now includes how those assets could function within the systems financial institutions use to settle transactions, secure trading positions and manage available cash. Collateral plays an established role in financial markets because banks, brokers and clearing firms require assets to secure loans, derivatives positions and other transactions. Investors commonly provide cash or eligible securities, with each receiving institution setting rules for the assets it will accept.

๐Ÿ”— BlackRock sees a potential role for tokenized money market fund shares in that process. A tokenized share represents an interest in an investment fund while allowing certain transactions involving that interest to take place through blockchain infrastructure. In the Bloomberg interview, Maley described the opportunity to bring tokenized funds into the traditional financial ecosystem. He distinguished the collateral arrangements already operating in cryptocurrency markets from the more difficult work of connecting blockchain-based assets with established financial systems.
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