Coinbase Custody in Spotlight as Dogecoin ETF Applications Pile Up at SEC

As of August 2025, the cryptocurrency market remains abuzz with anticipation as major firms including Bitwise, Grayscale, 21Shares, and Rex Shares await SEC decisions on their Dogecoin ETF applications. With over 70 cryptocurrency ETF filings under review, no DOGE-based products have yet received regulatory approval. Notably, Bitwise's January 2025 filing proposes using Coinbase Custody for DOGE storage and BNY Mellon for cash management, highlighting Coinbase's growing role in institutional crypto services. Grayscale's March filing further intensifies the competition among crypto giants seeking to launch the first approved Dogecoin ETF. The prolonged SEC review process reflects both the growing institutional interest in meme coins and the regulatory challenges facing cryptocurrency adoption in traditional finance.

Dogecoin ETF Applications Await SEC Decision as Crypto Giants Vie for Approval

Bitwise, Grayscale, 21Shares, and Rex Shares are among the firms seeking regulatory clearance for Dogecoin ETFs, with the SEC currently reviewing over 70 cryptocurrency ETF filings. No DOGE-based products have gained approval as of mid-2025, leaving the market in anticipation.

Bitwise's January 2025 filing proposes Coinbase Custody for Doge storage and BNY Mellon for cash management, while Grayscale's March submission faces a delayed decision timeline extending to November. Rex Shares anticipates an October-December 2025 review window, and 21Shares' April filing enters the SEC pipeline with a January 2026 deadline looming.

The regulatory bottleneck reflects broader institutional interest in meme coin exposure, with custody solutions and traditional finance partnerships emerging as common themes across applications. Market participants watch for precedent-setting decisions that could reshape altcoin investment vehicles.

Coinbase May Become First S&P 500 Company to Buy Bitcoin With $2B in Private Note Funds

Coinbase is preparing to raise $2 billion through a private convertible note offering, with speculation mounting that the funds could be used to purchase Bitcoin. This move WOULD mark a historic first for an S&P 500 company, leveraging debt markets to acquire cryptocurrency.

The Nasdaq-listed exchange plans to issue $1 billion in notes maturing in 2029 and another $1 billion due in 2032, targeting institutional investors. The unsecured notes will pay semiannual interest, with conversion terms to be finalized upon pricing. Demand could trigger an additional $150 million offering for each tranche.

Despite reporting declining Q2 revenue, Coinbase continues bridging traditional finance and crypto markets. The company intends to implement capped call transactions to mitigate potential stock dilution from the convertible notes.

Coinbase, PayPal Defend Stablecoin Rewards Despite GENIUS Act Ban

Coinbase and PayPal continue to offer rewards on stablecoin holdings despite the GENIUS Act's prohibition on issuer-provided interest. The law, enacted on July 18, 2025, targets stablecoin issuers to prevent them from offering yields that could resemble bank deposits. However, the platforms argue they are not issuers—Coinbase distributes USDC rewards via Circle, while PayPal offers PYUSD rewards through Paxos.

Both firms structure their programs as revenue-sharing arrangements rather than interest payments. Coinbase provides 4.1% annual rewards on USDC, with PayPal offering 3.7% on PYUSD. This legal distinction allows them to operate within the Act's constraints while maintaining customer incentives.

The MOVE underscores the crypto industry's adaptability to regulatory frameworks. By leveraging technical distinctions, major platforms preserve yield mechanisms critical for user retention—a balancing act between compliance and market competitiveness.

Galaxy Digital Posts Mixed Q2 Results Amid Bitcoin Holdings Growth

Galaxy Digital's shares dipped 8% post-earnings as investors cashed in gains following a strong rally. The crypto-focused firm reported a 28% quarter-over-quarter revenue increase in Global Markets to $55.4 million, defying a 22% drop in trading volumes. KBW analysts noted Galaxy outperformed broader market trends.

The company's Bitcoin holdings surged to 17,102 BTC ($1.8 billion) from 13,704 BTC ($1.3 billion) six months prior. Total liquidity stood at $2.5 billion, including $1.1 billion in cash and stablecoins. Galaxy's loan book averaged $1.1 billion, surpassing Coinbase's $879 million.

Infrastructure expansion continues with CoreWeave securing an additional 133MW at Helios, bringing total capacity to 800MW. Galaxy acquired 160 adjacent acres with potential to expand Helios to 3.5GW capacity.