In a recent statement, Richard Francis, a Senior Director at Fitch Ratings, indicated that the agency's baseline fiscal forecast remains unchanged following the passage of a new legislative bill in the US. Fitch had long anticipated significant tax reductions within its benchmark projections, and the new legislation does not substantially alter this outlook. The agency projects that the total US government deficit will rise to over 7% of GDP next year, with the debt-to-GDP ratio approaching 120% by 2026.
Key Developments in Digital Finance and Asset Management
Hong Kong Advances Digital Asset Framework with Stablecoin Licensing
At the Hong Kong Digital Finance Awards 2025 ceremony, Christopher Hui, Secretary for Financial Services and the Treasury, highlighted the city's active promotion of digital asset development. Hong Kong has established a regulatory framework that balances risk management, investor protection, and industry growth to foster a sustainable digital asset ecosystem.
Hui mentioned that the Hong Kong Exchanges and Clearing Limited (HKEX) has developed Hong Kong's first digital asset indices, providing transparent and reliable Bitcoin and Ethereum price benchmarks during Asian trading hours. This initiative supports Hong Kong's ambition to become a leading digital asset hub in Asia.
The upcoming stablecoin issuer licensing system, set to begin next month, is expected to drive practical application scenarios and further solidify Hong Kong's position as a regional leader.
People's Bank of China Seeks Public Feedback on Cross-Border Payment Rules
The People's Bank of China has released a draft of the "Cross-Border RMB Payment System Business Rules" for public consultation. The proposed rules clarify account management, funding, and settlement processes for participants in the Cross-Border Interbank Payment System (CIPS).
As CIPS continues to enhance its services and functionality, these updates aim to ensure the规范性文件's forward-looking nature and scientific rigor, effectively supporting the system's ongoing development and operational needs.
Ethereum Foundation Backs Tool Development Team with Three-Year Grant
The Ethereum Foundation has announced a three-year operational funding grant for Argot Collective, a team dedicated to developing tools for the Ethereum ecosystem. The support will facilitate their contributions to Solidity language development and other critical open-source infrastructure.
Argot Collective, founded by former Ethereum Foundation members, focuses on maintaining and optimizing core Ethereum tools.
Chinese Company Completes Blockchain-Based Asset Digitization
Hainan Huatie, a listed company, has successfully digitized and uploaded nearly 26 billion yuan worth of assets to a blockchain in collaboration with AntChain. By integrating MaaS trusted modules into the T-boxes of aerial work platforms, the company ensures data credibility from the source.
This achievement meets the prerequisite for Real World Asset (RWA) financing. Additionally, Hainan Huatie has signed a strategic agreement with the RWA Research Institute to collaborate on asset revaluation, industry standard formulation, and global circulation practices.
Swedish Firm Unveils Bitcoin-Dominated Crypto Treasury Strategy
Hilbert Group AB, a Swedish digital asset investment firm listed on Nasdaq, has introduced a comprehensive cryptocurrency treasury strategy with Bitcoin as its primary reserve asset. The plan, unanimously approved by the board, responds to growing institutional interest in crypto treasury assets.
A dedicated treasury committee, chaired by Chief Investment Officer Russell Thompson, will oversee the strategy. Hilbert is currently evaluating several financing proposals from institutional partners to enable large-scale capital deployment.
UK Public Company Expands Bitcoin Holdings
Cel AI, a UK-based publicly traded company, has purchased approximately 6.18 Bitcoin at an average price of $109,791 per coin, totaling an investment of $678,450.93. This move is part of the company's ongoing strategy to diversify its asset reserves.
Earlier, on June 30, Cel AI raised £10 million specifically for Bitcoin acquisition.
Understanding Fiscal Forecasts and Digital Asset Trends
What Is a Baseline Fiscal Forecast?
A baseline fiscal forecast represents an economic agency's core projection regarding a country's financial health, incorporating expected policies, spending, and revenue trends. It serves as a reference point for evaluating the impact of new legislative changes or economic events.
How Do Digital Asset Regulations Influence Markets?
Regulatory frameworks, like Hong Kong's stablecoin licensing system, provide clarity and security for investors and businesses. They encourage innovation while mitigating risks, fostering a healthier environment for digital asset adoption and development.
Why Are Companies Adopting Bitcoin Treasury Strategies?
Institutions are increasingly viewing Bitcoin as a store of value and hedge against inflation. Corporate treasury strategies involving Bitcoin aim to diversify assets, potentially enhance returns, and stay aligned with evolving financial technologies.
What Role Does Blockchain Play in Asset Digitization?
Blockchain technology ensures transparency, immutability, and efficiency in asset digitization. It enables secure tracking and verification of high-value assets, facilitating new financial products like RWA-based financing.
How Do Cross-Border Payment Systems Like CIPS Work?
Systems such as CIPS streamline international transactions using RMB, reducing reliance on traditional intermediaries. They enhance settlement speed, lower costs, and support the global use of Chinese currency.
What Are the Benefits of Open-Source Funding in Crypto?
Grants from organizations like the Ethereum Foundation accelerate innovation by supporting essential tools and infrastructure. This collaborative approach helps maintain and improve the ecosystem's robustness and accessibility.
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Frequently Asked Questions
Why did Fitch Ratings not change its forecast after the new US legislation?
Fitch had already incorporated expectations of significant tax cuts into its baseline projections. The newly passed bill did not introduce changes substantial enough to warrant an adjustment to their existing economic model.
How might Hong Kong's stablecoin licensing impact the digital asset market?
The licensing system is expected to increase trust and adoption by ensuring issuers meet rigorous standards. This could lead to more widespread use of stablecoins in everyday transactions and financial services within Asia.
What does asset digitization via blockchain enable for companies like Hainan Huatie?
It allows for transparent and verifiable tracking of physical assets on a blockchain, unlocking opportunities for secured financing, improved asset management, and participation in emerging markets like tokenized RWA.
Why are institutional investors increasingly interested in cryptocurrency treasuries?
Institutions seek diversification, potential high returns, and exposure to innovative asset classes. Cryptocurrencies, particularly Bitcoin, are seen as viable components of modern treasury management strategies.
How does public consultation benefit financial rule-making, as with China's CIPS?
Soliciting feedback ensures that regulations are practical, comprehensive, and adaptable to future needs. It helps identify potential issues and incorporates industry insights for more effective implementation.
What long-term benefits does funding open-source projects bring to blockchain ecosystems?
Sustainable funding for tooling and infrastructure promotes stability, security, and innovation. It enables developers to focus on critical improvements, benefiting everyone who relies on the network.