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<div style="display: none; max-height: 0px; overflow: hidden;">The Federal Reserve cut rates 25 basis points to 3.50-3.75% as expected. Updated projections lowered core inflation to 3% for 2025 β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β β </div>
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<h1><strong>TLDR Crypto <span id="date">2025-12-11</span></strong></h1>
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<div style="text-align: center;"><span style="font-size: 36px;">π</span></div></div>
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<a href="https://tracking.tldrnewsletter.com/CL0/https:%2F%2Fwww.coindesk.com%2Fmarkets%2F2025%2F12%2F10%2Ffederal-reserve-cuts-rates-25-basis-points-as-expected%3Futm_source=tldrcrypto/1/0100019b0d8f731d-cfc7a5eb-5366-4444-92e1-4ab984475552-000000/b2C8uh4EtEOh0NxWJSmEoaSf5kfO2RUtHaT8KpyGHBU=435">
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<strong>Bitcoin and the Fed Rate Cut (5 minute read)</strong>
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The Federal Reserve cut rates 25 basis points to 3.50-3.75% as expected, despite unusually large public dissension, with Kansas City Fed's Jeffrey Schmid and Chicago Fed's Austan Goolsbee voting to hold steady, while Trump appointee Stephen Miran dissented for a 50 basis point cut. Updated projections lowered core inflation to 3% for 2025 and raised GDP growth to 2.3% for 2026, though the dot plot maintained one 2026 rate cut versus markets pricing two as policymakers operate without key economic data delayed by the government shutdown. Bitcoin remained around $92,400 following the announcement as US stocks moved modestly higher and the 10-year Treasury yield dipped 2 basis points to 4.15%, with CME FedWatch pricing 24% odds of a January cut ahead of Powell's press conference.
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<strong>Gemini Wins CFTC Approval for Prediction Markets (3 minute read)</strong>
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Gemini just got CFTC approval to run a Designated Contract Market, clearing it to launch a fully regulated prediction market called Gemini Titan in the US. It will start with simple binary βyes/noβ event contracts and could later expand into crypto futures, options, and perpetuals under the same regulatory umbrella. Gemini actually filed for this DCM license back in 2020, but only now is positioning it directly for the booming prediction-market vertical that Kalshi and Polymarket helped prove out.
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<div style="text-align: center;"><span style="font-size: 36px;">π</span></div>
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<h1><strong>Innovation & Launches</strong></h1>
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<a href="https://tracking.tldrnewsletter.com/CL0/https:%2F%2Fdecrypt.co%2F351636%2Fprivacy-centric-version-circle-usdc-stablecoin-banks-rolls-out-aleo%3Futm_source=tldrcrypto/1/0100019b0d8f731d-cfc7a5eb-5366-4444-92e1-4ab984475552-000000/cuJfF-stQD1fUA2Zn1mlpz3pilaDOwCDZ_Z4TosiggM=435">
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<strong>Circle Launching Privacy-Centric Version of USDC on Aleo (4 minute read)</strong>
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Circle launched USDCx on Aleo's testnet via its xReserve platform, enabling privacy-preserving stablecoin transactions using zero-knowledge proofs for use cases spanning payroll, remittances, foreign aid, and national security. Aleo is building blockchain privacy infrastructure, with mainnet launch expected by the end of January, allowing users to protect transaction histories while maintaining regulatory compliance. Circle's xReserve enables blockchains to launch USDC-backed stablecoins that interoperate with native USDC, unifying liquidity.
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<strong>Gondor: Borrow Against Your Polymarket Positions (7 minute read)</strong>
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Gondor launched a DeFi protocol, allowing traders to borrow USDC at up to 50% loan-to-value against Polymarket ERC-1155 position tokens with dynamic interest capped at 10-30% based on market risk, liquidating at a 77% threshold by buying opposite outcomes and merging pairs for $1 redemption. The platform offers automated 2x leverage through recursive borrowing loops and applies early closure mechanisms for time-sensitive markets that linearly reduce liquidation thresholds to zero starting seven days before resolution. Three actively-managed funds β Conservative, Moderate, and Growth β currently supply lending liquidity during beta with team-selected market support based on liquidity, spreads, and slippage. V1 launching in 2026 will introduce cross-margining, enabling multiple positions as collateral bundles with diversified pricing, addressing remaining prediction market borrowing risks.
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<div style="text-align: center;"><span style="font-size: 36px;">π‘</span></div></div>
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<h1><strong>Guides & Tutorials</strong></h1>
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<strong>The Anatomy of a Crypto Neobank/βDefiBankβ (3 minute read)</strong>
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A βcrypto neobankβ effectively rebuilds four functions (Saving, Spending, Earning, and Borrowing) onchain. Today, CEXes act like quasi-neobanks but are still tied to legacy rails and custodial risk, while most DeFi products are siloed. A true DefiBank would be fully onchain, self-custodial, and composable with stablecoin βsavingsβ backed 1:1, payments that bypass card networks, trading/earn built on DEX routing, and borrowing that mixes onchain collateral with offchain credit data.
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<strong>The Ethereum Moat (3 minute read)</strong>
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Ethereum's unopinionated, general-purpose strategy that enabled its WWIII-resistant global settlement system is now impossible to replicate as institutions choose Ethereum over alternatives for reliability, neutrality, and minimized counterparty risk, similar to Bitcoin's institutional appeal. Network effects compound as more assets tokenize, rollups like Base anchor to Ethereum's security hub, and EVM developer onboarding accelerates, with Vitalik Buterin's rollup-centric roadmap widening Ethereum's moat rather than shrinking it. The Ethereum Foundation appears to be "righting the ship" after two years of struggle, as anecdotal evidence and data show institutions defaulting to Ethereum despite crypto-native sentiment turning bearish on L1 valuations.
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<div style="text-align: center;"><span style="font-size: 36px;">π¦</span></div></div>
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<div style="text-align: center;"><strong><h1>Miscellaneous</h1></strong></div>
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<strong>Low-Risk DeFi as a Global Savings Account (2 minute read)</strong>
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<span style="font-family: "Helvetica Neue", Helvetica, Arial, Verdana, sans-serif;">
βLow-risk DeFi on Ethereumβ effectively becomes a universal savings account as anyone, anywhere can park money in dollar stablecoins and earn ~4% onchain, versus ~0.4% in a US bank account and often negative real yields elsewhere. By making treasury-like returns accessible globally, Ethereum turns compounding interest from a rich-country privilege into something available to a single mom, a refugee, or a teenager learning finance. In that framing, the win isn't speculative upside. Instead, it's simply letting people hold value that keeps up with (or beats) inflation.
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<strong>Stripe's USDC Fee Isn't Just βGasβ (2 minute read)</strong>
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<span style="font-family: "Helvetica Neue", Helvetica, Arial, Verdana, sans-serif;">
Stripe isn't charging to move USDC, it's charging to wrap stablecoins in a full payments stack (checkout UI, multi-rail routing, refunds, fiat settlement, fraud and compliance, subscriptions, analytics, and support) and embedding it where merchants already accept cards, PayPal, etc. To actually undercut 1.5%, a competitor would need to replicate that entire suite, not just accept a wallet transfer, which is why most merchants won't roll their own crypto integration for what is still incremental volume.
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<div style="text-align: center;"><span style="font-size: 36px;">β‘</span></div></div>
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<strong>ETH vs Ethereum Value Accrual (3 minute read)</strong>
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βUltrasound Moneyβ as a mechanical thesis is dead with Fusaka, fees and burn are structurally lower, institutions mostly want USD-denominated blockspace, and Ethereum's success no longer guarantees direct value accrual to ETH.
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<strong>Aave v4 in One Minute (1 minute read)</strong>
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Aave v3 fragmented liquidity across markets.
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<strong>Sei Partners With Xiaomi for Smartphone Wallets (2 minute read)</strong>
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All new Xiaomi phones sold outside of mainland China and the United States will come pre-loaded with crypto apps.
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<strong>Stripe acquires Valora wallet team (5 minute read)</strong>
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Stripe acquired the team behind mobile-first self-custody wallet Valora in an undisclosed acqui-hire as founder Jackie Bona transitions to pursue "expanding global access to financial systems," while the app's intellectual property returns to original developer cLabs.
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