The Orange Envelope Vol 1: Bitcoin DeFi Heats Up Across Asia & UAE
March 20, 2025 • Reading Time: 6 minutes
The crypto industry entered 2025 with strong momentum—driven by Bitcoin's fourth halving, technical breakthroughs, over 20 tokenized BTC assets, and Spot ETFs setting the stage for a landmark year. But February’s market turbulence was a reminder that growth isn’t always linear.
Amid the ups and downs, Asia and the UAE have charged forward with transformative strides. South Korea is lifting restrictions on institutional crypto investments, Vietnam is finalizing its crypto framework, and Thailand has greenlit USDT for trading and payments. Meanwhile, Japan is reconsidering its tax and stablecoin policies—a shift we’ll dive into later in this issue. The UAE is also advancing, approving Ripple for regulated crypto payments and further solidifying its position as a global crypto hub.
As Q1 draws to a close, the trend is unmistakable. Regulatory clarity, stablecoin adoption, and Bitcoin’s expanding role in yields, lending, and DeFi are pulling institutions into the fold across Asia and the UAE—marking a maturing market poised for growth.
🔍 In Focus: Key Trends Shaping Bitcoin L2 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 Japan’s crypto resurgence and the latest milestones for sBTC.
🇯🇵 Japan’s Crypto Revival: A New Era?
Japan was once the world’s largest crypto market and home to Mt. Gox, which at its peak handled over 70% of global Bitcoin transactions. However, after major exchange hacks and stricter regulations, the country lost its dominance.
Now, change is in the air. Policymakers are pushing for crypto tax reforms that could lower tax rates from 55% to 20%, a move that is expected to spark renewed interest among Japanese investors. Meanwhile, a new stablecoin bill under review could expand collateral options and introduce tailored brokerage regulations. If passed, the bill could not only boost enthusiasm among stablecoin issuers but also lower entry barriers for brokerages, thereby enhancing market liquidity.
With these shifts, Japan is positioning itself for a crypto resurgence. As institutional and retail investors regain confidence, Japan is once again embracing Bitcoin—not just as a store of value, but as a foundation for Bitcoin-first financial innovation. With increasing support from policymakers and industry leaders, the country is well-positioned to drive Bitcoin L2 adoption and innovation across Asia.
🚀 sBTC Hits 3,000 BTC Locked in 24 Hours—What’s Next?
Bitcoin is becoming more than just an asset to hold—it's being put to work in DeFi through Bitcoin L2’s like Stacks. A major sign of this shift? On February 25th, the second sBTC deposit cap filled in less than 24 hours, bringing total supply to 3,000 sBTC. This milestone makes Stacks the fastest-growing blockchain in BTC TVL so far in 2025—and now, sBTC has officially flipped Rootstock in total BTC locked.
sBTC is a Bitcoin-backed asset on Stacks that lets BTC be used in smart contracts, DeFi, and lending—without giving up custody. It maintains a 1:1 peg, ensuring every sBTC is backed by real BTC.
The next step? sBTC Phase 2 launches on March 31st, enabling withdrawals for the first time. This means users will be able to move BTC in and out of sBTC freely, expanding Bitcoin’s role in DeFi. From 1,000 BTC locked in a week to 3,000 BTC in a day, Bitcoin L2 adoption is accelerating—turning BTC from a passive asset into an active financial tool.
📈 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.
The crypto industry entered 2025 with strong momentum—driven by Bitcoin's fourth halving, technical breakthroughs, over 20 tokenized BTC assets, and Spot ETFs setting the stage for a landmark year. But February’s market turbulence was a reminder that growth isn’t always linear.
Amid the ups and downs, Asia and the UAE have charged forward with transformative strides. South Korea is lifting restrictions on institutional crypto investments, Vietnam is finalizing its crypto framework, and Thailand has greenlit USDT for trading and payments. Meanwhile, Japan is reconsidering its tax and stablecoin policies—a shift we’ll dive into later in this issue. The UAE is also advancing, approving Ripple for regulated crypto payments and further solidifying its position as a global crypto hub.
As Q1 draws to a close, the trend is unmistakable. Regulatory clarity, stablecoin adoption, and Bitcoin’s expanding role in yields, lending, and DeFi are pulling institutions into the fold across Asia and the UAE—marking a maturing market poised for growth.
🔍 In Focus: Key Trends Shaping Bitcoin L2 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 Japan’s crypto resurgence and the latest milestones for sBTC.
🇯🇵 Japan’s Crypto Revival: A New Era?
Japan was once the world’s largest crypto market and home to Mt. Gox, which at its peak handled over 70% of global Bitcoin transactions. However, after major exchange hacks and stricter regulations, the country lost its dominance.
Now, change is in the air. Policymakers are pushing for crypto tax reforms that could lower tax rates from 55% to 20%, a move that is expected to spark renewed interest among Japanese investors. Meanwhile, a new stablecoin bill under review could expand collateral options and introduce tailored brokerage regulations. If passed, the bill could not only boost enthusiasm among stablecoin issuers but also lower entry barriers for brokerages, thereby enhancing market liquidity.
With these shifts, Japan is positioning itself for a crypto resurgence. As institutional and retail investors regain confidence, Japan is once again embracing Bitcoin—not just as a store of value, but as a foundation for Bitcoin-first financial innovation. With increasing support from policymakers and industry leaders, the country is well-positioned to drive Bitcoin L2 adoption and innovation across Asia.
🚀 sBTC Hits 3,000 BTC Locked in 24 Hours—What’s Next?
Bitcoin is becoming more than just an asset to hold—it's being put to work in DeFi through Bitcoin L2’s like Stacks. A major sign of this shift? On February 25th, the second sBTC deposit cap filled in less than 24 hours, bringing total supply to 3,000 sBTC. This milestone makes Stacks the fastest-growing blockchain in BTC TVL so far in 2025—and now, sBTC has officially flipped Rootstock in total BTC locked.
sBTC is a Bitcoin-backed asset on Stacks that lets BTC be used in smart contracts, DeFi, and lending—without giving up custody. It maintains a 1:1 peg, ensuring every sBTC is backed by real BTC.
The next step? sBTC Phase 2 launches on March 31st, enabling withdrawals for the first time. This means users will be able to move BTC in and out of sBTC freely, expanding Bitcoin’s role in DeFi. From 1,000 BTC locked in a week to 3,000 BTC in a day, Bitcoin L2 adoption is accelerating—turning BTC from a passive asset into an active financial tool.
📈 Stacks Metrics Spotlight
- Total STX Value Locked in DeFi reaches new All Time High
- 535,731,197 STX stacked in cycle 105, the highest since December 2022
📰 In The News:
- Hong Kong expands virtual asset push – New licensing and trading options approved.
- Singapore & Hong Kong lead Asia’s crypto expansion – 40 new licenses issued.
- South Korea to lift institutional crypto ban – New guidelines coming in Q3.
- Vietnam finalizing digital asset regulations – Expected by March.
- Metaplanet secures more Bitcoin – Japan’s first public Bitcoin treasury company buys 156 BTC ($13.4M).
📅 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:
- NYC | Digital Asset Summit | March 18 - 20, 2025
- Hong Kong | Web3 Festival | April 6 - 9, 2025
- Seoul | BUIDL Asia | April 15 - 16, 2025
- Tokyo | TEAMZ Web3 Summit | April 16 - 17, 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.