Franklin Templeton Digital Assets (@FTDA_US): September 2025 Crypto Recap:

September 2025 Crypto Recap: September brought steady progress across the digital asset space, with notable developments in tokenization, regulatory developments, and mainstream market participation. While innovation advanced through tokenized equity launches, new ETP pathways, and high-profile IPOs, the month was also shaped by macroeconomic factors. The Federal Reserve’s rate cut fueled both short-lived rallies and sharp volatility, reminding investors that broader market conditions remain a key driver alongside institutional adoption and regulatory milestones. Building on August’s momentum, September highlighted how deeply digital assets are embedding into mainstream finance. One of the strongest themes of the month was the acceleration of tokenization and institutional adoption. Galaxy Digital made headlines by tokenizing its public shares on Solana through the GLXY token, positioning Solana as a leading blockchain for institutional-grade tokenization. (1) This was complemented by Forward Industries (FORD)’s $1.6 billion Solana-based Digital Asset Treasury (DAT) strategy, backed by Galaxy, Jump Crypto, and Multicoin. Momentum continued as Nasdaq filed to list tokenized stocks, while Franklin Templeton deepened its role in digital assets by partnering with Binance to deliver institutional-grade tokenization, joining Ripple and DBS to build tokenized finance solutions, and integrating its Benji Technology platform with the BNB Chain. (2) Alongside tokenization, several companies made major market entries that broadened mainstream access to crypto. Gemini raised $425 million in its IPO and debuted on Nasdaq under the ticker GEMI, while Figure, a blockchain lender, launched with a $7.6 billion valuation after a blockbuster IPO. (3, 4) American Bitcoin, a mining and treasury firm tied to the Trump family, also listed on Nasdaq, with shares jumping over 10% on its first day. Together, these moves underscored the growing willingness of traditional capital markets to embrace crypto-linked firms. (5) Regulatory developments also advanced meaningfully in September. The SEC and CFTC issued a joint statement clarifying that U.S.-registered exchanges can list certain spot crypto products, opening the door to expanded trading options. (6) Later in the month, the two agencies announced a joint roundtable on September 29th with leaders from major traditional exchanges and crypto-native platforms to discuss regulatory harmonization. The SEC also simplified the path for spot crypto ETFs, reducing approval timelines from up to 240 days to as few as 75, and approved several new funds, including a Dogecoin ETF. (7) Outside the U.S., Australia’s Treasury proposed bringing exchanges under existing financial licensing laws. (8) Stablecoin innovation was another defining feature of the month. Hyperliquid launched USDH, its ecosystem-native stablecoin, while Tether introduced USAT, a U.S.-compliant token issued through Anchorage under the GENIUS Act. (9, 10) Reports also indicated that Tether may be exploring a fundraising round that could value the firm at $500 billion, underscoring its dominant role in the market. Meanwhile, European banking giants prepared to launch a euro stablecoin, further underscoring the currency’s strategic importance. (11) Markets, however, remained sensitive to macroeconomic conditions. After the Federal Reserve cut interest rates by 25 basis points, Bitcoin briefly climbed to $117K before sharp derivatives liquidations dragged major assets lower. By the end of the month, Bitcoin, Ethereum, Solana, and XRP had edged lower, reflecting a cautious tone in markets even as institutional flows and new products continued to add depth. Overall, September underscored the dual nature of crypto’s evolution: rapid innovation and institutional entry alongside ongoing volatility. Tokenization advanced meaningfully, stablecoin initiatives multiplied, and regulators took decisive steps toward clarity. As October begins, the stage is set for deeper integration between traditional finance and digital assets, with regulatory harmonization and institutional adoption driving the industry forward. *The above referenced discussions are noteworthy activities that happened during the month in crypto markets. Discussions should not be regarded as any type of trading recommendation, or as a signal about any past, current or future trading activity in any fund or strategy, by Franklin Templeton and its affiliates. 1. Source: “Galaxy and Superstate Launch GLXY Tokenized Public Shares on Solana.” Galaxy. September 3, 2025. 2. Source: “Nasdaq Seeks Rule Change With SEC to Trade Tokenized Stocks” Bloomberg. September 8, 2025. 3. Source: “The Next Big Crypto IPO? Everything You Need to Know About Gemini’s Stock Offering.” Decrypt. September 11, 2025. 4. Source: “Blockchain lender Figure valued at $7.6 billion as shares jump in Nasdaq debut.” Reuters. September 12, 2025. 5. Source: “American Bitcoin, backed by President trump’ sons, listed on the Nasdaq.” Yahoo Finance. September 4, 2025. 6. Source: “SEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products.” https://t.co/6BzGlOoXOi. September 2, 2025. 7. Source: “SEC paves way for crypto spot ETFs with new listing rules.” CNBC. September 17, 2025. 8. Source: “Australia Targets Rogue Crypto Exchanges with 10% Fines” Cryptopolitan. September 25, 2025. 9. Source: “Hyperliquid announces native USDH Stablecoin.” Cryptopolitan. September 5, 2025. 10. Source: “Tether Unveils USAT Stablecoin for U.S. Market, Names Bo Hines to Lead New Division.” CoinDesk. September 12, 2025. 11. Source: “European Banks to Launch Euro Stablecoin in Bid to Counter US Dominance” Reuters. September 25, 2025.