Internet infrastructure firm Cloudflare has announced its intention to launch a new stablecoin, the NET Dollar, which will be fully backed by the U.S. dollar. This development comes as the U.S. Senate Finance Committee schedules a hearing to examine the taxation of digital assets, signaling increased focus from both corporations and regulators on the cryptocurrency sector.
Key Takeaways
- Cloudflare is launching the NET Dollar, a stablecoin fully collateralized by U.S. dollars, aimed at machine-to-machine payments.
- The U.S. Senate Finance Committee will hold a hearing on October 1 to review digital asset taxation rules.
- Bitcoin miner Cipher has secured a $3 billion AI hosting agreement with financial backing from Google.
- South Korean internet company Naver plans to acquire Upbit's parent company, Dunamu, through a share swap.
Cloudflare to Launch U.S. Dollar-Backed Stablecoin
Cloudflare CEO Matthew Prince revealed the company's plan to introduce its own stablecoin, named the NET Dollar. The digital currency will be fully collateralized by U.S. dollar reserves, ensuring a one-to-one value peg. While a specific launch date has not been provided, the company indicated it will be available soon.
The primary use case for the NET Dollar is to facilitate automated, machine-to-machine payments on a global scale. Cloudflare sees this as a critical tool for the growing ecosystem of artificial intelligence agents that need to transact across various networks automatically.
A Crowded and Growing Market
Cloudflare's entry places it in an increasingly competitive stablecoin market. It will compete with established players like Tether and Circle, as well as newer entrants such as PayPal. Major financial institutions, including Bank of America, JPMorgan, and Société Générale, are also developing their own stablecoin offerings.
The move aligns with bullish forecasts for the stablecoin sector. According to analysts at Citi, the total issuance of stablecoins is projected to reach $1.9 trillion by 2030 in their base case scenario, with a more optimistic bull case predicting a market size of $4 trillion. The current market capitalization stands at approximately $282 billion.
Cloudflare's extensive global infrastructure, which processes an average of 78 million HTTP requests per second and includes data centers in over 330 cities, provides a significant platform for deploying the new stablecoin.
U.S. Senate Schedules Hearing on Crypto Taxation
The U.S. Senate Finance Committee has officially scheduled a hearing for October 1 titled "Examining the Taxation of Digital Assets." The event, which will be livestreamed, aims to gather insights from industry leaders on the current tax framework for cryptocurrencies.
A panel of experts is expected to provide testimony. Confirmed speakers include Lawrence Zlatkin, Vice President of Tax at Coinbase, alongside representatives from the advocacy group Coin Center, ASKramer Law, and the American Institute of CPAs' Digital Assets Tax Task Force.
Current Tax Rules Under Review
Under existing Internal Revenue Service (IRS) guidelines, taxpayers are required to report all cryptocurrency transactions, regardless of whether they result in a capital gain or loss. This has been criticized by some as burdensome and a barrier to using digital assets for small, everyday payments.
This hearing follows a legislative proposal introduced in July by Senator Cynthia Lummis. The bill seeks to modernize what she described as "outdated and restrictive" tax rules that could stifle innovation in the United States. The White House has also previously expressed support for creating de minimis exemptions, which would exclude small-value crypto transactions from tax reporting requirements.
Cipher Inks $3 Billion AI Hosting Deal Backed by Google
Cipher, a company that began as a Bitcoin miner, has diversified its operations by signing a significant 10-year AI hosting agreement valued at $3 billion. The deal with Fluidstack will see Cipher provide 168 megawatts of IT load capacity from its facility in Barber Lake, Texas.
A key component of the agreement is the financial backing from Google. The technology giant will backstop $1.4 billion of Fluidstack's lease obligations. In return for this support, Google will receive warrants equivalent to a 5.4% equity stake in Cipher.
The contract includes options for two additional five-year renewals. If exercised, these renewals could increase the total value of the deal to approximately $7 billion. To finance the necessary expansion of its data centers, Cipher also announced a proposed private offering of $800 million in zero-coupon convertible senior notes.
Other Key Developments in the Digital Asset Sector
Several other notable events have occurred across the cryptocurrency landscape, highlighting ongoing corporate and regulatory activity.
Naver Plans Integration of Upbit Exchange
In South Korea, internet giant Naver is moving to make Dunamu, the parent company of the country's largest crypto exchange, Upbit, a wholly-owned subsidiary of Naver Financial. According to local reports, the transaction will be structured as a share swap, allowing both entities to remain legally intact while integrating Upbit into Naver's extensive financial services ecosystem.
This move comes as South Korean regulators work to establish a formal framework for a won-pegged stablecoin and broader digital asset regulations, expected by the end of the year.
Metaplanet Retains 'Buy' Rating Despite Stock Decline
Despite a 40% decline in its stock price over the past month, Bitcoin treasury company Metaplanet has received a vote of confidence from research firm Benchmark. The firm reiterated its "buy" rating for the stock, setting a 2026 price target of 2,400 Japanese yen.
"Benchmark highlighted Metaplanet's ability to generate recurring income from bitcoin derivative strategies as a key differentiator from its competitors."
Metaplanet recently increased its holdings to 25,555 BTC after a $632.5 million purchase, solidifying its position as the fifth-largest public corporate holder of Bitcoin.
