Crypto Business Models Converge on Traditional Finance

Crypto's biggest business models are increasingly resembling those of traditional finance, according to recent developments in the industry. One notable trend is the growth of interest income and reserve management, which are key revenue drivers for traditional banks.

BlackRock has expanded its offerings to include tokenized reserve products specifically designed for stablecoin issuers, as mandated by the US GENIUS Act. This move highlights the increasing importance of on-chain reserve infrastructure in the crypto space.

Tokenized gold trading volumes have been resilient during market stress, but its use as collateral in DeFi lending remains limited, representing only about 1.5% of its combined market capitalization. American Bitcoin, a miner linked to the Trump family, reported record Q2 production and narrowed its net loss, although it still operates at a significant deficit.

Tether's Q2 profit reached $1.5 billion, largely driven by interest from US Treasury holdings and repurchase agreements. The stablecoin issuer maintains a significant reserve surplus of $4.11 billion and continues to dominate the global stablecoin market with over 60% share.