Key Takeaways
- Citigroup (C) is actively exploring custody and payment services for stablecoins and crypto ETFs, signaling a significant move by traditional finance into the digital asset space.
- The U.S. Treasury Secretary has clarified that the Trump administration will not directly purchase additional Bitcoin for its strategic reserve, instead relying on confiscated assets, which are currently valued between $15 billion and $20 billion.
- Taiwan is set to revise its 2025 economic growth estimate following the Trump administration's imposition of a 20% duty on its exports to the U.S., reflecting the direct impact of new trade tariffs.
- Bill Ackman's Pershing Square disclosed a $1.3 billion stake in Amazon (AMZN), totaling over 5.8 million shares, acquired during a tariff-driven market slump earlier this year.
- The Reserve Bank of New Zealand (RBNZ) is widely expected to cut its official cash rate by 25 basis points to 3% on August 20, as inflation cools and the labor market softens.
The financial world is abuzz with significant developments spanning cryptocurrency regulation, global trade dynamics, and central bank monetary policy. Major institutions are navigating evolving digital asset landscapes, while new tariffs are reshaping international economic forecasts, and central banks are adjusting rates to manage inflation and growth.
In a notable move for digital assets, Citigroup (C) is considering offering custody and payment services for stablecoins and crypto exchange-traded funds (ETFs). This strategic exploration by one of the largest U.S. banks comes amidst rising demand for digital assets and a more favorable regulatory environment in the United States, particularly concerning stablecoins. The bank aims to provide custody for high-quality assets backing stablecoins, such as U.S. Treasuries and cash reserves, and support crypto ETFs, with BlackRock's iShares Bitcoin Trust (IBIT) alone holding approximately $90 billion in assets. This initiative positions Citigroup to challenge existing crypto-native custodians like Coinbase, which currently serves over 80% of crypto ETF issuers.
Meanwhile, the Trump administration's approach to cryptocurrency has been clarified by Treasury Secretary Scott Bessent, who stated that the U.S. will not purchase additional Bitcoin for its strategic reserve. Instead, the reserve, currently valued between $15 billion and $20 billion and comprising 198,022 BTC, will grow solely through confiscated assets. This stance aligns with the administration's goal of establishing the U.S. as a "Bitcoin superpower" without direct market purchases. Concurrently, DeFi advocates, including Andreessen Horowitz (a16z) and the DeFi Education Fund, are pushing the SEC for a "safe harbor" to provide regulatory clarity for decentralized finance (DeFi) applications. They argue that such a framework would protect non-custodial blockchain apps from being misclassified as broker-dealers, fostering innovation within the U.S. crypto space.
On the global trade front, Taiwan is preparing to revise its 2025 economic growth estimate after the Trump administration imposed a 20% duty on its exports to the U.S. This tariff, which came into effect on August 7, 2025, is part of a broader U.S. strategy to address trade deficits and has prompted Taiwan to continue negotiations for more favorable terms. The new duties are expected to shave off half a percentage point in growth for the broader economy starting in 2025. In a related development, Bill Ackman's Pershing Square Capital Management disclosed a significant $1.3 billion stake in Amazon.com Inc. (AMZN), encompassing over 5.8 million shares. This investment was made during a tariff-driven slump earlier in the year, highlighting a strategic move to capitalize on market dislocations caused by trade policy.
In monetary policy news, the Reserve Bank of New Zealand (RBNZ) is poised to cut its official cash rate by 25 basis points to 3% at its August 20 meeting. This anticipated easing, widely predicted by a Reuters poll of economists, comes as New Zealand experiences cooling inflation, which is now within the RBNZ's 1-3% target range, and a softening labor market, with the jobless rate rising to 5.2%. This move signals a continued shift towards more accommodative monetary policy to support economic recovery.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.