Vester Updates

Things are progressing steadily. Over the past few weeks, we’ve been refining core functionality, eliminating bugs, and improving the user experience. At the same time, we’ve adding new features that bring us closer to the full vision of Vester as your go-to crypto investment assistant.

To keep that momentum up, we just brought on a talented software engineer to help us move faster. Every new hire is a force multiplier at this stage in our company, and this one’s no exception.

Vester is moving in the right direction, and we’re staying focused on what matters. Expect continuous improvements over the next few months, that will be evident in our product and conveyed through this newsletter.

This Week in Crypto

Bitcoin Pushes to New All-Time Highs

Bitcoin pushed to a new all-time high this week, crossing $118,000, fueled by a potent mix of global liquidity, institutional positioning, and expanding access channels. The rally reflects a convergence of structural tailwinds rather than a single catalyst.

At the center are continued spot ETF inflows, which have resumed after a short consolidation period. BlackRock and Fidelity products led the pack, absorbing new demand even as traditional equity flows remain muted. Meanwhile, stablecoin supply, often an early liquidity signal, has grown for four straight months, suggesting a steady reallocation into risk assets.

The broader economy is playing its part too. Real interest rates have leveled off, traditional equities are looking tired, and crypto is back in the spotlight as the go-to high-beta trade. Across Asia, there's a clear appetite for synthetic dollar exposure and a surge in activity from offshore desks, adding even more fuel to the fire.

This isn't your typical retail-driven frenzy. The infrastructure is robust, the rules are clearer, and serious liquidity is flowing back in. While Bitcoin still holds a lot of market sway, the ETH/BTC ratio has stabilized, and it feels like "alt season" is just around the corner.

If history is any guide, Bitcoin leads the charge, but it never goes it alone.

SEC Formalizes ETF Disclosure Rules

The SEC made a quiet but significant move this week, releasing a 12-page bulletin outlining how crypto ETFs should handle everything from custody and redemptions to forks and airdrops. This isn't a brand new regulation, but it sends a clear signal: crypto ETFs are no longer an anomaly. They're being treated like a legitimate asset class.

This is huge because it finally gives asset managers a clear roadmap, which will undoubtedly speed things up. What used to take over 200 days for approval could now happen in under 75. This newfound clarity makes altcoin ETFs with staking and yield exposure significantly more viable.

ETF markets operate in cycles and follow clear narratives. With regulatory clarity improving, the conversation is shifting from basic approvals to widespread expansion. We've already seen Ethereum and Solana spot ETFs go live, and given the growing demand for wrapped access to high-yield, high-usage assets, Avalanche could be next.

Pakistan Eyes a Digital Rupee

In a noteworthy shift, Pakistan's central bank announced on July 9th that it's planning a pilot program for a central bank digital currency (CBDC) and will finalize legislation to regulate crypto activity. This includes licensing requirements for exchanges and a new framework for how digital assets will be supervised within the country. For a government that has historically been hesitant about crypto, this marks a significant move towards acceptance, not restriction.

Part of this change is clearly driven by currency pressures. The Pakistani rupee has been steadily losing ground against the dollar for the past seven years. This decline has opened the door to unofficial "dollarization," a rise in stablecoin usage, and the emergence of alternative payment systems.

The CBDC isn't just a tech upgrade; it's a strategic move to reassert monetary control in a market that's already operating partly outside the traditional banking system. With increasing mobile penetration, growing stablecoin adoption, and high demand for remittances, Pakistan is choosing to compete in the digital space rather than retreating into isolation, as some other nations have done.

Code, Crime, or Both? The Trial of Roman Storm Begins

The U.S. trial of Roman Storm, co-creator of Tornado Cash, is set to begin on July 14th in New York. Storm faces serious charges, including money laundering, sanctions violations, and operating an unlicensed money transmitter, all stemming from his role in publishing code for the privacy-focused Ethereum mixer.

Tornado Cash is open-source software designed to obfuscate transaction history. Prosecutors argue that Storm knowingly facilitated illicit activity, including money laundering by North Korea's Lazarus Group. The defense, however, contends that Storm merely wrote code, not laundered money, and had no control over how the tool was used by others.

The outcome of this case could set a crucial precedent:

• A conviction might expand liability to developers of decentralized tools, particularly those focused on privacy.

• An acquittal would reinforce the long-standing crypto principle that code is speech, not a financial act.

This isn't just about Tornado Cash. The verdict will force developers in decentralized finance to seriously reexamine questions of responsibility, control, and legal risk, especially when building tools that can operate without ongoing oversight.

Chart of the Week: Stablecoins, Stablecoins, Stablecoins

I'll keep emphasizing stablecoins because they are truly at the heart of so many critical trends: global dollar demand, on-chain infrastructure, and evolving interest rate dynamics. The total market cap of stablecoins has just hit a new all-time high, driven by genuine adoption across payments, funding markets, and tokenized cash equivalents.

Let's take a look at the stablecoin market cap over the past seven years. While not always flashy, the growth has been remarkably consistent and is one of the most reliable indicators of how the crypto market is maturing.

In January 2018, the total market cap of all stablecoins was under 2 billion dollars. Today, it’s over 255 billion. That’s a 12,000% increase in seven years.

The fastest periods of growth came during two phases. First, from 2020 through early 2022, driven by DeFi, centralized exchange activity, and global demand for dollar exposure during COVID-era stimulus. Stablecoin supply rose from around 5 billion to more than 180 billion. Then, after a reset in 2022 and early 2023, growth resumed. This time the drivers were tokenized T-bills, on-chain money markets, and broader integration into payment infrastructure.

USDT still leads with around 112 billion in supply. USDC has regained momentum as regulatory clarity improves and adoption picks up in fintech and tokenized yield products. Smaller entrants like PYUSD and EURC are starting to carve out niches in cross-border settlement and treasury rails.

What matters now is who is issuing and who is using. BlackRock’s BUIDL fund and other tokenized treasuries are settling in stablecoins. Demand for digital dollars is rising in emerging markets. Fintech apps are using stablecoins for faster and cheaper settlement, often without the end user even realizing it.

The growth in supply reflects functional use. This is not speculative excess. It is stable, dollar-denominated capital being deployed across real-world applications.

Closing Thoughts

The markets are moving incredibly fast, and narratives are shifting by the week. ETF flows, CBDC pilots, groundbreaking protocol upgrades, and major macro shifts are all converging on-chain. This dynamic environment is exactly where Vester shines.

Vester is the research layer for digital assets, built to move you beyond headlines with real context, solid data, and sharper answers. Whether you're tracking flows, testing a thesis, or watching market structure, we help you stay informed and ahead.

The Vester Pulse is how we share that progress, real-time insights, visual breakdowns, and a look at what we’re building. We have several hundred subscribers on board already, and would appreciate you sharing this newsletter with anyone who would find this newsletter valuable.

As always, visit our website and reach out with any questions or commentary.