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Lorenzo Protocol
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Lorenzo Letter #09: No FDIC Insurance For Stablecoins
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Welcome to the Lorenzo Letter, your weekly update on stablecoins, DeFi, tokenization, crypto legislation, and more.
In This Issue:
FDIC Says Stablecoins Won’t Receive Deposit InsuranceMastercard Launches Global Crypto Partner ProgramBlackRock Launches Staked Ethereum ETFResearch Spotlight - The Impact of Rising Private Credit Risk on DeFi Lending
FDIC Says Stablecoins Won’t Receive Deposit Insurance
FDIC Chairman Travis Hill said stablecoin holders will not qualify for federal deposit insurance under the GENIUS Act, including through pass-through insurance structures tied to reserves held at insured banks. The agency is preparing a rule to make clear that stablecoins remain outside the FDIC safety net as implementation of the new federal framework moves forward.
Hill drew a clear line between stablecoins and tokenized deposits. While stablecoins issued by nonbanks would not receive deposit protection, tokenized bank deposits recorded on blockchain rails would still be treated as traditional deposits and remain eligible for standard FDIC coverage up to $250,000.
The comments come as banks grow more vocal about stablecoin competition. Jefferies analysts said rising adoption could reduce U.S. bank core deposits by 3% to 5% over the next five years, while banking groups continue pushing regulators to limit stablecoin-based yield products as agencies finalize GENIUS Act rules.
Full Story:
https://www.triana.media/fdic-says-stablecoins-wont-receive-deposit-insurance
Mastercard Launches Global Crypto Partner Program
Mastercard has launched a new Crypto Partner Program designed to accelerate real-world digital asset payment use cases, bringing together more than 85 companies across crypto, fintech, and banking. Participants include major industry players such as Binance, Ripple, PayPal, Circle, Gemini, Crypto.com, and Bybit, along with infrastructure providers like MoonPay, Paxos, Anchorage Digital, and Nexo.
The initiative focuses on practical blockchain payment applications, including cross-border transfers, B2B payments, payouts, and settlement infrastructure. Mastercard says the program will allow partners to work directly with its product teams to develop technologies that integrate digital assets into the company’s global payments network.
The program builds on Mastercard’s expanding digital asset strategy, which includes its Start Path blockchain accelerator, the Engage fintech partnership platform, and a growing number of crypto-linked payment cards that allow users to spend digital assets anywhere Mastercard is accepted.
Full Story:
https://lorenzo-protocol.ghost.io/mastercard-launches-global-crypto-partner-program/
BlackRock Launches Staked Ethereum ETF
BlackRock has launched the iShares Staked Ethereum Trust ETF (ETHB), a new Nasdaq-listed fund that provides exposure to ether while generating staking rewards. The product holds spot ETH and stakes a portion of the assets on the Ethereum network, allowing investors to access both price exposure and yield through a traditional brokerage-traded ETF.
The fund expands BlackRock’s crypto lineup alongside the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA), which track asset prices but do not include staking. ETHB introduces staking for the first time within the firm’s ETF suite and carries a 0.25% sponsor fee, temporarily reduced to 0.12% for the first $2.5 billion in assets during its first year.
The launch reflects growing institutional demand for income-generating crypto products as investors increasingly evaluate digital assets using frameworks similar to traditional yield-bearing investments.
BlackRock’s entry also intensifies competition in the emerging staking ETF category, where issuers such as Grayscale, 21Shares, and REX-Osprey have begun exploring similar structures as crypto ETFs continue gaining traction with institutional investors.
Full Story:
https://www.triana.media/blackrock-launches-staked-ethereum-etf
Research Highlight — The Impact of Rising Private Credit Risk on DeFi Lending
As private credit continues expanding globally, new research explores how rising defaults and liquidity pressures in traditional lending markets could ripple into DeFi. With more on-chain protocols integrating real-world credit exposure and structured yield products, shifts in the off-chain credit cycle may increasingly influence how DeFi lending markets behave.
This report examines how different lending architectures, from overcollateralized protocols like Aave and Compound to institutional credit platforms such as Maple and emerging unsecured credit systems like 3Jane, may respond if private credit risk intensifies.
It also highlights how a deterioration in traditional credit markets could reshape risk pricing, capital flows, and protocol resilience across the on-chain lending ecosystem.
Read:
https://lorenzo-protocol.ghost.io/the-impact-of-rising-private-credit-risk-on-defi-lending/
Welcome to the Lorenzo Letter, your weekly update on stablecoins, DeFi, tokenization, crypto legislation, and more.
In This Issue:
FDIC Says Stablecoins Won’t Receive Deposit InsuranceMastercard Launches Global Crypto Partner ProgramBlackRock Launches Staked Ethereum ETFResearch Spotlight - The Impact of Rising Private Credit Risk on DeFi Lending
FDIC Says Stablecoins Won’t Receive Deposit Insurance
FDIC Chairman Travis Hill said stablecoin holders will not qualify for federal deposit insurance under the GENIUS Act, including through pass-through insurance structures tied to reserves held at insured banks. The agency is preparing a rule to make clear that stablecoins remain outside the FDIC safety net as implementation of the new federal framework moves forward.
Hill drew a clear line between stablecoins and tokenized deposits. While stablecoins issued by nonbanks would not receive deposit protection, tokenized bank deposits recorded on blockchain rails would still be treated as traditional deposits and remain eligible for standard FDIC coverage up to $250,000.
The comments come as banks grow more vocal about stablecoin competition. Jefferies analysts said rising adoption could reduce U.S. bank core deposits by 3% to 5% over the next five years, while banking groups continue pushing regulators to limit stablecoin-based yield products as agencies finalize GENIUS Act rules.
Full Story:
https://www.triana.media/fdic-says-stablecoins-wont-receive-deposit-insurance
Mastercard Launches Global Crypto Partner Program
Mastercard has launched a new Crypto Partner Program designed to accelerate real-world digital asset payment use cases, bringing together more than 85 companies across crypto, fintech, and banking. Participants include major industry players such as Binance, Ripple, PayPal, Circle, Gemini, Crypto.com, and Bybit, along with infrastructure providers like MoonPay, Paxos, Anchorage Digital, and Nexo.
The initiative focuses on practical blockchain payment applications, including cross-border transfers, B2B payments, payouts, and settlement infrastructure. Mastercard says the program will allow partners to work directly with its product teams to develop technologies that integrate digital assets into the company’s global payments network.
The program builds on Mastercard’s expanding digital asset strategy, which includes its Start Path blockchain accelerator, the Engage fintech partnership platform, and a growing number of crypto-linked payment cards that allow users to spend digital assets anywhere Mastercard is accepted.
Full Story:
https://lorenzo-protocol.ghost.io/mastercard-launches-global-crypto-partner-program/
BlackRock Launches Staked Ethereum ETF
BlackRock has launched the iShares Staked Ethereum Trust ETF (ETHB), a new Nasdaq-listed fund that provides exposure to ether while generating staking rewards. The product holds spot ETH and stakes a portion of the assets on the Ethereum network, allowing investors to access both price exposure and yield through a traditional brokerage-traded ETF.
The fund expands BlackRock’s crypto lineup alongside the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA), which track asset prices but do not include staking. ETHB introduces staking for the first time within the firm’s ETF suite and carries a 0.25% sponsor fee, temporarily reduced to 0.12% for the first $2.5 billion in assets during its first year.
The launch reflects growing institutional demand for income-generating crypto products as investors increasingly evaluate digital assets using frameworks similar to traditional yield-bearing investments.
BlackRock’s entry also intensifies competition in the emerging staking ETF category, where issuers such as Grayscale, 21Shares, and REX-Osprey have begun exploring similar structures as crypto ETFs continue gaining traction with institutional investors.
Full Story:
https://www.triana.media/blackrock-launches-staked-ethereum-etf
Research Highlight — The Impact of Rising Private Credit Risk on DeFi Lending
As private credit continues expanding globally, new research explores how rising defaults and liquidity pressures in traditional lending markets could ripple into DeFi. With more on-chain protocols integrating real-world credit exposure and structured yield products, shifts in the off-chain credit cycle may increasingly influence how DeFi lending markets behave.
This report examines how different lending architectures, from overcollateralized protocols like Aave and Compound to institutional credit platforms such as Maple and emerging unsecured credit systems like 3Jane, may respond if private credit risk intensifies.
It also highlights how a deterioration in traditional credit markets could reshape risk pricing, capital flows, and protocol resilience across the on-chain lending ecosystem.
Read:
https://lorenzo-protocol.ghost.io/the-impact-of-rising-private-credit-risk-on-defi-lending/
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