The Orange Envelope:
Asia Poised for Massive
Crypto Inflows
July 24, 2025 • Reading Time: 8 minutes
Bitcoin has broken past $123,000, shattering previous records and signaling a new era of adoption. The explosive rally is being driven by surging institutional demand, massive inflows of spot Bitcoin ETFs, and growing optimism for crypto adoption worldwide.
Across Asia, policy winds are shifting decisively in favor of crypto. Hong Kong will launch an entire stablecoin licensing regime on August 1st, a bold move to solidify its position as a regulated hub. In Vietnam, parliament passed a landmark law in June that fully legalizes cryptocurrency, reversing nearly a decade of restrictions, which we’ll explore later in this issue. And in South Korea, the newly elected government is fast-tracking legislation to enable won-based stablecoins and spot Bitcoin ETFs.
Meanwhile, a rising number of Bitcoin treasuries are beginning to emerge across Asia, driving significant institutional inflows while also offering local residents new ways to gain BTC exposure. Japan’s Quantum Solutions is building a 3,000 BTC treasury backed by IAM Asia, aiming to become a top-five public BTC holder. In Thailand, DV8 has committed $200 million to a Bitcoin treasury strategy, starting with a $7.4 million investment. And in South Korea, public company SGA has secured ₩34.5 billion (approx. $25 million) in funding from a consortium led by Sora Ventures and Metaplanet’s Simon Gerovich, marking its intent to adopt Bitcoin as a treasury asset.
This convergence of capital, clarity, and conviction is fueling the rise of Bitcoin DeFi (BTCFi), where Bitcoin evolves from a passive store of value into programmable, yield-generating capital. At the center of this shift is Stacks, a Bitcoin Layer 2 that brings smart contracts to Bitcoin and powers sBTC, a 1:1 Bitcoin-backed asset designed for DeFi.
The result? Dormant BTC is waking up. With infrastructure, legal clarity, and capital flows aligning, BTCFi is no longer a niche; it’s becoming the next chapter of Bitcoin. Here’s what’s unfolding across BTCFi, Stacks, and Asia’s fast-moving crypto landscape.
🔍 In Focus: Key Trends Shaping BTCFi in Asia
Each edition, we’ll take a deeper look at the promising drivers of Bitcoin Layer 2 adoption. In this issue, we’re covering Vietnam’s regulatory shift and the latest milestones for Stacks.
🇻🇳 Vietnam Legalizes Crypto – From Crackdown to Regulated Openness
Vietnam has taken a significant step toward crypto adoption. In June 2025, the National Assembly passed the Law on Digital Technology Industry, formally recognizing cryptocurrency as virtual property under national law. While crypto remains banned for payments, it is now legally defined as an asset, clearing the path for regulated trading and custody.
This shift follows years of cautious engagement. After banning crypto payments in 2017 and cracking down on scams and unlicensed exchanges, Vietnam began exploring regulation through government task forces and policy pilots. By 2023, top-level directives called for a flexible framework to support blockchain and digital assets, culminating in this year’s legislation.
Implementation is scheduled to begin in January 2026, but groundwork is already underway. Regulators are partnering with global players, such as Bybit, to launch a regulatory sandbox and pilot a state-supported crypto trading platform. Bybit is contributing technical expertise, compliance frameworks, and transaction monitoring tools to support the project under close supervision. The sandbox will test exchange operations in a controlled environment, helping regulators refine rules—including licensing and tax treatment—before the full launch.
Vietnam already ranks among the top 5 countries globally for crypto adoption. By treating crypto as property and establishing supervised pilots, the country is transitioning from a grey market to a regulated ecosystem, striking a balance between innovation, investor protection, and financial oversight. What comes next could define its place in the global digital economy.
🚀 Stacks’ SIP-031 Passes – A New Growth Engine for Stacks and Bitcoin Utility
Stacks is entering a new era. On July 9th, the community passed SIP-031, a pivotal proposal to establish a long-term growth endowment for the Stacks ecosystem. Backed by over 97% of voting power, the proposal unlocks up to 500 million STX in ecosystem capital over the next five years, earmarked for initiatives that drive Bitcoin utility, user growth, and developer activity.
This is more than just a treasury; it’s a mandate for expansion. SIP-031 establishes a Stacks Growth Endowment to deploy capital in ways that increase demand for sBTC, a 1:1 bitcoin-backed asset for DeFi, and STX, the token securing the Stacks Layer 2. The goals include growing total value locked (TVL), strengthening network economics, and driving broader ecosystem growth. Focus areas include core upgrades, STX value accrual and BTC yield strategies, as well as adoption efforts through liquidity incentives, developer support, and regional expansion in Asia and the UAE. It also establishes a Treasury Committee to ensure transparent and strategic capital deployment.
This initiative arrives as institutional infrastructure catches up. Major custodians, such as Copper, BitGo, and Hex Trust, support STX and sBTC, and cross-chain bridges like Wormhole are now live, making it easier to move assets between networks. Meanwhile, Bitcoin ETF inflows are surging, sparking renewed demand for BTC strategies that go beyond holding, the kind Stacks is purpose-built to support.
SIP-031 signals a shift: from a scrappy builder culture to a capitalized, mission-driven effort to accelerate adoption and solidify Stacks as a leading force in the Bitcoin economy. With traction now prioritized at the highest level, the community isn’t just building infrastructure; it is laying the foundation for a top-tier ecosystem powered by STX and sBTC.
📈 Stacks Metrics Spotlight
📰 In The News:
📅 Upcoming Events:
As the Bitcoin ecosystem continues to expand across Asia, major events are bringing together key players to discuss adoption, infrastructure, and Bitcoin’s evolving role in global finance. Here’s what’s ahead:
Want More? Follow Stacks & Stacks Asia on X.
Explore all upcoming Stacks events & hackathons: Calendar
Disclaimer: Any information, links, or views expressed here are the writer's opinions and are not financial advice. They should not form the basis for making investment decisions nor be interpreted as a recommendation or advice to engage in investment transactions. Please do your own research.
Bitcoin has broken past $123,000, shattering previous records and signaling a new era of adoption. The explosive rally is being driven by surging institutional demand, massive inflows of spot Bitcoin ETFs, and growing optimism for crypto adoption worldwide.
Across Asia, policy winds are shifting decisively in favor of crypto. Hong Kong will launch an entire stablecoin licensing regime on August 1st, a bold move to solidify its position as a regulated hub. In Vietnam, parliament passed a landmark law in June that fully legalizes cryptocurrency, reversing nearly a decade of restrictions, which we’ll explore later in this issue. And in South Korea, the newly elected government is fast-tracking legislation to enable won-based stablecoins and spot Bitcoin ETFs.
Meanwhile, a rising number of Bitcoin treasuries are beginning to emerge across Asia, driving significant institutional inflows while also offering local residents new ways to gain BTC exposure. Japan’s Quantum Solutions is building a 3,000 BTC treasury backed by IAM Asia, aiming to become a top-five public BTC holder. In Thailand, DV8 has committed $200 million to a Bitcoin treasury strategy, starting with a $7.4 million investment. And in South Korea, public company SGA has secured ₩34.5 billion (approx. $25 million) in funding from a consortium led by Sora Ventures and Metaplanet’s Simon Gerovich, marking its intent to adopt Bitcoin as a treasury asset.
This convergence of capital, clarity, and conviction is fueling the rise of Bitcoin DeFi (BTCFi), where Bitcoin evolves from a passive store of value into programmable, yield-generating capital. At the center of this shift is Stacks, a Bitcoin Layer 2 that brings smart contracts to Bitcoin and powers sBTC, a 1:1 Bitcoin-backed asset designed for DeFi.
The result? Dormant BTC is waking up. With infrastructure, legal clarity, and capital flows aligning, BTCFi is no longer a niche; it’s becoming the next chapter of Bitcoin. Here’s what’s unfolding across BTCFi, Stacks, and Asia’s fast-moving crypto landscape.
🔍 In Focus: Key Trends Shaping BTCFi in Asia
Each edition, we’ll take a deeper look at the promising drivers of Bitcoin Layer 2 adoption. In this issue, we’re covering Vietnam’s regulatory shift and the latest milestones for Stacks.
🇻🇳 Vietnam Legalizes Crypto – From Crackdown to Regulated Openness
Vietnam has taken a significant step toward crypto adoption. In June 2025, the National Assembly passed the Law on Digital Technology Industry, formally recognizing cryptocurrency as virtual property under national law. While crypto remains banned for payments, it is now legally defined as an asset, clearing the path for regulated trading and custody.
This shift follows years of cautious engagement. After banning crypto payments in 2017 and cracking down on scams and unlicensed exchanges, Vietnam began exploring regulation through government task forces and policy pilots. By 2023, top-level directives called for a flexible framework to support blockchain and digital assets, culminating in this year’s legislation.
Implementation is scheduled to begin in January 2026, but groundwork is already underway. Regulators are partnering with global players, such as Bybit, to launch a regulatory sandbox and pilot a state-supported crypto trading platform. Bybit is contributing technical expertise, compliance frameworks, and transaction monitoring tools to support the project under close supervision. The sandbox will test exchange operations in a controlled environment, helping regulators refine rules—including licensing and tax treatment—before the full launch.
Vietnam already ranks among the top 5 countries globally for crypto adoption. By treating crypto as property and establishing supervised pilots, the country is transitioning from a grey market to a regulated ecosystem, striking a balance between innovation, investor protection, and financial oversight. What comes next could define its place in the global digital economy.
🚀 Stacks’ SIP-031 Passes – A New Growth Engine for Stacks and Bitcoin Utility
Stacks is entering a new era. On July 9th, the community passed SIP-031, a pivotal proposal to establish a long-term growth endowment for the Stacks ecosystem. Backed by over 97% of voting power, the proposal unlocks up to 500 million STX in ecosystem capital over the next five years, earmarked for initiatives that drive Bitcoin utility, user growth, and developer activity.
This is more than just a treasury; it’s a mandate for expansion. SIP-031 establishes a Stacks Growth Endowment to deploy capital in ways that increase demand for sBTC, a 1:1 bitcoin-backed asset for DeFi, and STX, the token securing the Stacks Layer 2. The goals include growing total value locked (TVL), strengthening network economics, and driving broader ecosystem growth. Focus areas include core upgrades, STX value accrual and BTC yield strategies, as well as adoption efforts through liquidity incentives, developer support, and regional expansion in Asia and the UAE. It also establishes a Treasury Committee to ensure transparent and strategic capital deployment.
This initiative arrives as institutional infrastructure catches up. Major custodians, such as Copper, BitGo, and Hex Trust, support STX and sBTC, and cross-chain bridges like Wormhole are now live, making it easier to move assets between networks. Meanwhile, Bitcoin ETF inflows are surging, sparking renewed demand for BTC strategies that go beyond holding, the kind Stacks is purpose-built to support.
SIP-031 signals a shift: from a scrappy builder culture to a capitalized, mission-driven effort to accelerate adoption and solidify Stacks as a leading force in the Bitcoin economy. With traction now prioritized at the highest level, the community isn’t just building infrastructure; it is laying the foundation for a top-tier ecosystem powered by STX and sBTC.
📈 Stacks Metrics Spotlight
- STX value locked in DeFi: $176.2M, reaching a new all-time high in June.
- STX stacked in cycle 108: 610.13M, reaching a new all-time high.
- sBTC value locked: $600M, holding strong at the current cap.
📰 In The News:
- Hong Kong to regulate stablecoins – New licensing law takes effect August 1.
- Mainland China reopens crypto talks – Officials discuss yuan-based stablecoins.
- S Korea proposes Digital Asset Act – Would legalize Bitcoin ETFs and stables.
- Japanese firms increase BTC holdings – MetaPlanet leads and banks follow.
- Thailand grants crypto tax break – 5 year exemption on capital gains starts 2025.
- Thailand launches crypto sandbox – Tourists can use digital assets for payments.
- Bitcoin ETF inflows surge – $50B enters market in H1 2025, driving price to ATH.
- DeSpread publishes treasury playbook – Guides asset management for institutions.
- Stacks powers BTC shift – From passive holding to productive capital
- Wormhole integrates Stacks – Enables cross-chain transfers of STX and sBTC.
- Nansen integrates Stacks – Enabling access to real-time, AI-driven on-chain analytics.
📅 Upcoming Events:
As the Bitcoin ecosystem continues to expand across Asia, major events are bringing together key players to discuss adoption, infrastructure, and Bitcoin’s evolving role in global finance. Here’s what’s ahead:
- Ho Chi Minh City | Conviction 2025 | August 9 – 10, 2025
- Bali | Coinfest Asia | August 21 - 22, 2025
- Tokyo | WebX Summit | August 25 – 26, 2025
- Hong Kong | Bitcoin Asia | August 28 – 29, 2025
- Taipei | Taipei Blockchain Week | September 4 - 6, 2025
- Seoul | Korea Blockchain Week | September 22 – 28, 2025
Want More? Follow Stacks & Stacks Asia on X.
Explore all upcoming Stacks events & hackathons: Calendar
Disclaimer: Any information, links, or views expressed here are the writer's opinions and are not financial advice. They should not form the basis for making investment decisions nor be interpreted as a recommendation or advice to engage in investment transactions. Please do your own research.