Ethereum’s Role in HSBC’s Digital Currency Pilot: A Leap Toward Interoperability

HSBC has taken a significant step in the evolution of digital currencies by testing ethereum and other blockchain platforms as part of Hong Kong's Project e-HKD+. This initiative explores the potential for a digital Hong Kong Dollar, focusing on interoperability across public chains like Ethereum, Arbitrum, and Polygon, as well as HSBC's private Hyperledger Besu network. The trials aimed to address key technical challenges, including secure cross-chain transactions and privacy preservation, marking a pivotal moment for Ethereum's integration into mainstream finance. As of July 2025, this development underscores the growing confidence in Ethereum's scalability and utility in large-scale financial systems, potentially boosting its long-term value and adoption.

HSBC Tests Ethereum Integration in Hong Kong's Digital Currency Pilot

HSBC has conducted trials using Ethereum and other blockchain platforms as part of Hong Kong's Project e-HKD+, exploring the potential for a digital Hong Kong Dollar. The bank tested interoperability across public chains like Ethereum, Arbitrum, and Polygon, alongside its private Hyperledger Besu network, focusing on secure cross-chain transactions and privacy preservation.

Key technical challenges included settlement efficiency for tokenized assets, decentralized identity solutions, and seamless operation across both public and private networks. Consumer research revealed strong demand for transactional privacy, with 90% of respondents prioritizing confidentiality in e-HKD usage.

SharpLink Expands Ethereum Holdings, Stock Surges 17% Amid Institutional Crypto Adoption Wave

SharpLink Gaming has aggressively expanded its Ethereum treasury with a 21,487 ETH purchase through Coinbase Prime, triggering a 17% stock price rally. The NASDAQ-listed company now holds 237,121 ETH worth approximately $90 million, mirroring MicroStrategy's Bitcoin accumulation strategy. This follows their initial direct purchase from the Ethereum Foundation last week.

The MOVE comes alongside growing institutional interest in Ethereum. BlackRock's iShares Ethereum ETF (ETHA) reported $761 million in weekly inflows, including a single-day $137 million purchase of 45,000 ETH. The fund now manages over 2 million ETH with $6.15 billion in assets under management.

GameSquare joined the trend this week, announcing plans for a $100 million Ethereum treasury. Market activity suggests corporations are increasingly viewing Ethereum as a strategic reserve asset, with trading volumes for SharpLink hitting $53 million amid the buying spree.

GMX Hack Exposes Vulnerabilities in Decentralized Exchange Security

GMX, a leading decentralized perpetual exchange on Arbitrum, suffered a $42 million exploit on July 9. The attack was not a brute-force assault but a meticulously planned exploit targeting weaknesses in the platform's V1 architecture.

Hackers immediately began laundering stolen funds, transferring approximately $9.6 million from Arbitrum to Ethereum—a common tactic involving cross-chain bridges before potential obfuscation through privacy protocols like Tornado Cash.

The incident underscores an escalating arms race in DeFi security. While cryptocurrency adoption reaches new institutional heights, sophisticated attacks continue to evolve, exploiting vulnerabilities faster than defenses can adapt.

Ethereum ETFs Signal Strong July Surge

Ethereum exchange-traded funds are gaining unprecedented momentum, with recent inflows ranking among the top ten ever recorded. Just 11 days into July, these products are on track to become the most profitable month yet in 2025.

The surge is fueled by a nearly 20% price jump for ETH over the past week, driven by institutional buyers and whales. After reclaiming the $3,000 level for the first time since February, Ethereum is attracting major capital inflows, including through its derivatives.

U.S. spot Ethereum ETFs have already seen $890 million in inflows this month, building on two months of solid growth. Despite being less than a year old, these products are showing signs of a sustained rally, possibly their strongest since launching in July 2024.

ETF activity has accelerated sharply, with nearly 380,000 ETH acquired over the past nine days — exceeding the net issuance since the 2022 Merge. Major firms like BlackRock are deepening their exposure, now holding 1.5% of ETH’s circulating supply, worth around $4.5 billion.

If the current pace continues, Ethereum’s price could see further gains — potentially sparking broader altcoin momentum heading into Q3.

Polygon's Heimdall v2 Upgrade Slashes Transaction Times to 5 Seconds

Polygon has rolled out its Heimdall v2 upgrade, dramatically reducing transaction finality from 1-2 minutes to just 5 seconds. The enhancement marks a watershed moment for developers and enterprises requiring real-time settlement, particularly in payments and real-world asset (RWA) tokenization.

The upgrade replaces Tendermint's consensus mechanism with CometBFT, a leaner system that eliminates legacy code while boosting network stability. This architectural shift aligns with Polygon's recent Bhulai hardfork, which expanded throughput to 1,000 TPS and added support for Ethereum's EIP-7702.

Financial institutions are already capitalizing on the network's improvements. Polygon processed over $1 billion in transactions through platforms like Nexo and Revolut during H1 2025, while its stablecoin ecosystem now safeguards $2.7 billion in value.

SharpLink Gaming Expands Ethereum Holdings with Strategic Purchase from Ethereum Foundation

Nasdaq-listed SharpLink Gaming has bolstered its Ethereum reserves by acquiring 10,000 ETH from the Ethereum Foundation in a $25.72 million over-the-counter transaction. The deal, executed at $2,572.37 per token, elevates the company's total ETH holdings to 215,634 coins as part of its treasury diversification strategy.

The Ethereum Foundation confirmed the sale via social media, noting proceeds will fund Core initiatives including protocol development and ecosystem grants. Blockchain records show the transfer occurred July 11 at 12:31 UTC, despite both parties initially reporting July 10 as the settlement date.

This institutional acquisition underscores growing corporate adoption of ETH as a reserve asset, while providing the Foundation with operational liquidity. The transaction signals confidence in Ethereum's long-term value proposition from both ecosystem builders and publicly traded entities.