KEYTAKEAWAYS
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Babylon will launch a dual EVM + CosmWasm virtual machine to boost BTCFi-DeFi compatibility and enhance cross-chain Bitcoin smart contract capabilities.
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South Korea paused its CBDC pilot to prioritize KRW stablecoins, led by major banks under the DIDIA initiative amid clearer regulation.
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Metaplanet issued ¥30B in zero-coupon bonds to buy 1,005 BTC, now holding 13,350 BTC and becoming the fifth-largest public Bitcoin holder.
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BABYLON GENESIS CHAIN TO ADOPT EVM + COSMWASM DUAL VM FOR BTCFI
Babylon will implement a dual virtual machine architecture, integrating both EVM and CosmWasm, to enhance compatibility with the Bitcoin financial ecosystem (BTCFi).
CosmWasm is already live on mainnet, supporting Rust-based smart contracts with native Bitcoin library support. The EVM environment is expected to go live between Q3–Q4 2025, with a devnet now running and a testnet upcoming.
Analysis:
By combining Bitcoin security integration with Ethereum’s DeFi ecosystem and developer base, Babylon positions itself to serve both BTCFi and DeFi sectors.
This strategic dual-VM model strengthens cross-chain utility for Bitcoin assets and may help Babylon gain early traction in the BTCFi race.
SOUTH KOREA HALTS CBDC PILOT, TURNS FOCUS TO KRW STABLECOINS
The Bank of Korea has paused its second-phase CBDC pilot originally scheduled for Q4 2025, citing issues from prior trials and increasing legislative and private-sector interest in KRW stablecoins.
Major local banks including KB Kookmin, Shinhan, Hana, and Woori are now leading open blockchain and stablecoin initiatives under the DIDIA project.
Analysis:
This pivot marks a shift from state-driven CBDCs to market-driven KRW stablecoins. Backed by regulatory clarity under the Virtual Asset Basic Act, multi-bank collaboration promises faster adoption across payments and cross-border finance.
It also boosts Korea’s competitiveness in the global stablecoin landscape.
METAPLANET ISSUES ¥30B ZERO-COUPON BOND TO BUY MORE BITCOIN
Japanese public company Metaplanet issued ¥30 billion (≈$208M) in zero-coupon bonds to fund additional Bitcoin purchases.
The company acquired 1,005 BTC at an average price of $107,601 each, raising its total holdings to 13,350 BTC—worth ≈$1.4B—surpassing Galaxy Digital and CleanSpark to become the 5th largest public BTC holder.
Analysis:
Metaplanet’s move reflects a strategic shift toward a “Bitcoin standard” balance sheet. By using low-cost debt financing, it is capitalizing on institutional interest in BTC as a reserve asset.
This bolsters Metaplanet’s profile and signals growing corporate acceptance of Bitcoin as a core treasury asset.
