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Anchorage Digital has acquired Hedgey, a startup specializing in token cap table management and TGE technology, as part of its strategy to expand crypto infrastructure services. The deal strengthens Anchorage’s ability to reduce operational risk and errors in token allocation, vesting, and distribution, while extending its role across the full token lifecycle. The move aligns with Anchorage’s broader push into custody, investment, stablecoin, and wealth management services as more crypto firms enter the crypto-banking space.

HashKey Holdings’ shares fell about 5% in their Hong Kong trading debut, signaling investor caution despite the company’s dominant position in the city’s licensed crypto exchange market. The stock opened below its IPO price after prospectus disclosures highlighted heavy losses alongside rapid growth in users and trading activity.

HashKey controls roughly three-quarters of Hong Kong’s regulated crypto trading volume and processed over $81.8 billion in 2024. However, its ultra-low fee strategy — largely below 0.1% — has kept revenue growth well behind rising operating costs tied to licensing, compliance, custody, and infrastructure. The exchange reported cumulative net losses of around $385 million between 2022 and mid-2025.

Early trading suggests investors remain unconvinced that scale alone can resolve the imbalance, with the market waiting for clearer signs of higher fees, improved margins, or stronger contributions from value-added services.

Fewer people in the United Kingdom are holding crypto in 2025 compared with last year, although the average value held per investor has increased, according to a new report from the Financial Conduct Authority (FCA).

The number of crypto holders in the U.K. has declined from approximately 7 million in 2024 to around 4.5 million this year. Despite the drop in ownership, overall awareness of crypto among the U.K. population remains high at 91%, the FCA said in its Cryptoassets Consumer Research 2025 report.

The regulator noted that the share of U.K. adults currently holding cryptoassets has fallen from 12% in 2024 to 8% in 2025. These findings were released as the FCA simultaneously launched a consultation on proposed crypto rules under a new regulatory framework, as it moves to expand oversight of the sector.

Despite the decline in participation, the FCA emphasized that crypto ownership in the U.K. is still double the level reported in 2021. Moreover, investors who remain active in the market appear to be holding larger amounts. Around 21% of respondents said they hold crypto worth between £1,001 and £5,000.

The average value held per investor has risen to just under $2,500, up from approximately $2,300 last year. According to an October report by the Financial Times, the total value of crypto held by U.K. residents stands at about $17.3 billion.

Bitcoin and ether continue to be the most popular cryptoassets among U.K. investors. Around 70% of crypto holders own bitcoin, while roughly 35% hold ether, indicating that despite declining participation, investment remains heavily concentrated in the two largest digital assets.

Elizabeth Warren Calls for Probe Into DeFi Ties to President Donald Trump’s Crypto Interests

U.S. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has called for a new national security probe into decentralized finance (DeFi) platforms, focusing on their potential links to the crypto business interests of President Donald Trump. The move comes as negotiations over a U.S. crypto market structure bill have stalled and are now expected to resume in January.

In a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, Warren urged authorities to review PancakeSwap, a major decentralized exchange, over concerns that it may be amplifying tokens tied to World Liberty Financial Inc., a company connected to Trump-linked interests. She also raised concerns about possible improper political influence on enforcement decisions.

Warren criticized DeFi platforms that facilitate hundreds of millions of dollars in daily transactions without requiring user identification, calling DeFi oversight a key unresolved issue in the market structure bill. The White House has dismissed claims that Trump’s crypto ties represent a conflict of interest, while negotiations over the legislation remain uncertain amid broader political and budgetary pressures.

Marshall Islands Launch First On-Chain UBI Program Using Digital Bond on Stellar

The Republic of the Marshall Islands has completed the world’s first on-chain universal basic income (UBI) disbursement using a digitally native sovereign bond, USDM1, on the Stellar blockchain. The initiative is part of the country’s national ENRA UBI program and replaces physical cash deliveries with direct digital transfers to citizens across its widely dispersed islands.

USDM1 is a U.S. dollar-denominated bond fully backed by short-term U.S. Treasury bills and issued under New York law. Funds are distributed through the Stellar Disbursement Platform into a custom digital wallet app, Lomalo, enabling near-instant payouts. The government said the program is a fiscal distribution mechanism rather than a currency initiative and does not compromise the nation’s monetary sovereignty.

The U.S. Federal Deposit Insurance Corp. (FDIC) has unveiled its first rule proposal under the new stablecoin law, opening a 60-day public comment period on how it will handle applications from regulated banks seeking to issue stablecoins through subsidiaries.

The proposal sets out procedures for submitting and reviewing applications within a 120-day approval window, along with an appeals process for rejected filings. Acting Chairman Travis Hill said the framework is designed to assess safety and soundness while minimizing regulatory burden. More comprehensive rules covering capital, liquidity, and risk management requirements for stablecoin issuers are expected to follow in the coming months.

Polkadot (DOT) climbed 1.9%, outperforming the CoinDesk 20 index’s 0.6% gain, following news that the network now supports USDC and direct withdrawals from Coinbase. The announcement helped fuel a technical breakout, according to CoinDesk Research’s technical analysis model.

DOT advanced to around $1.91 over 24 hours, forming successive higher lows despite early volatility. Trading volume came in 17% above the 30-day average, signaling steady accumulation rather than speculative buying. The model identified solid support in the $1.87–$1.88 range, while institutional flows accelerated, with token volume reaching roughly three times the session average and keeping prices near intraday highs.

The JPEX fraud case in Hong Kong has been adjourned until March 16, 2026, after prosecutors were granted additional time to organise extensive case files from a two-year investigation. The next hearing will focus on a group of social media influencers accused of promoting JPEX and serving as the public face of its over-the-counter crypto trading operations.

The defendants face charges including conspiracy to defraud, fraud, unlawfully inducing others to invest in virtual assets, and dealing with proceeds of crime. Seven of the eight defendants were granted bail under existing conditions, while one remains in custody.

JPEX collapsed in September 2023 after Hong Kong’s Securities and Futures Commission warned that the platform was unlicensed and had made misleading claims. Users subsequently reported frozen withdrawals, with authorities estimating that more than 2,700 victims suffered combined losses exceeding $206 million.

So far, more than 80 people have been arrested in connection with the case, facing charges ranging from fraud and money laundering to obstruction of justice. Three alleged masterminds remain at large under Interpol red notices. The scandal has had wider repercussions for Hong Kong’s crypto sector, undermining public confidence at a time when the city is seeking to position itself as a regional hub for Web3 and digital assets.

The U.S. Federal Trade Commission has proposed a settlement with Illusory Systems Inc., the operator of the Nomad crypto bridge, over a 2022 cyberattack that drained approximately $186 million in digital assets. According to the regulator, a poorly tested software update introduced a critical vulnerability in Nomad’s smart contracts, which was rapidly exploited by hackers and led to the near-total depletion of funds on the bridge.

The FTC alleged that Illusory marketed Nomad as a “security-first” platform while failing to follow basic secure coding standards and maintain effective vulnerability reporting and incident-response procedures. As a result, the company was unable to halt the exploit in time, leaving consumers with losses exceeding $100 million.

Under the proposed settlement, Illusory would be prohibited from misrepresenting its security practices, required to implement a formal information security program, undergo independent biennial security assessments, and return any recovered funds not yet repaid to affected users. The agreement has been placed on public record for a 30-day comment period before a final decision is made by the FTC.

India’s financial crime agency has intensified a nationwide crackdown on an alleged cryptocurrency-based Ponzi and MLM network accused of defrauding investors of around $275 million. The Enforcement Directorate conducted coordinated raids across northern states, targeting fake crypto platforms that promised unusually high returns but operated as unregulated Ponzi schemes. Authorities say the network used fabricated tokens, manipulated prices, shell companies, and real estate deals to launder funds. Assets, bank accounts, documents, and digital devices have been seized, and the investigation remains ongoing.

Vietnam, Ukraine and Nigeria lead crypto adoption driven by necessity

Bybit’s latest report shows that crypto adoption is growing fastest in countries where traditional financial systems fall short, with Ukraine, Nigeria and Vietnam standing out. The data also confirms that stablecoins have become the most widely used crypto product globally.

Vietnam ranks ninth worldwide, with strong user penetration and high transactional activity, as nearly 20% of the population is estimated to hold digital assets. Crypto use in the country is largely driven by remittances, inflation hedging and savings, while Vietnam is also emerging as an active DePIN hub. Ukraine places thirteenth, recording stablecoin flows of around $6.9 billion, which have become a financial lifeline during wartime. Nigeria ranks nineteenth, where inflation, currency devaluation and capital controls have pushed households and businesses toward stablecoins and peer-to-peer platforms, supported by the launch of the naira-backed cNGN.

According to Bybit, stablecoins are now leading global crypto adoption by enabling everyday payments, preserving value and providing gateways to DeFi platforms, centralized exchanges and tokenized assets. This trend is being reinforced by clearer regulatory frameworks in the U.S., the EU and Hong Kong, growing involvement from traditional financial institutions, and rising interest in local-currency stablecoins.

Global crypto investment products recorded $864 million in net inflows last week, marking the third consecutive week of positive flows, according to CoinShares. The data suggests investors remain cautious but are gradually turning more optimistic despite muted price performance following the U.S. Federal Reserve’s recent rate cut.

U.S.-based funds led inflows, followed by Germany and Canada, with the three countries accounting for over 98% of total inflows in 2025. Bitcoin-based products attracted the largest share of capital, while short-Bitcoin products saw continued outflows, signaling improving market sentiment. Ethereum products also posted strong inflows, alongside positive contributions from Solana, XRP, Aave and Chainlink, although Hyperliquid-related funds recorded net outflows.

Bitcoin network activity has fallen to its lowest level in 12 months as the year draws to a close, with the 7-day moving average of active addresses dropping to around 660,000. While seasonal slowdowns toward year-end are not unusual, current data point to broader weakness across multiple core network metrics.

Active addresses are now at their lowest level since December 2024, when the network saw a surge in activity driven by speculation around Ordinals and Runes. Ordinals enable data such as images or text to be inscribed directly onto individual satoshis, while Runes is a newer protocol designed for issuing and trading fungible tokens on Bitcoin.

The decline in network activity is also exerting pressure on miner economics. Daily miner revenue has fallen from an average of approximately $50 million in the third quarter to around $40 million as the year ends. Notably, the vast majority of this revenue now comes from block subsidies rather than transaction fees, underscoring the limited demand for Bitcoin blockspace.

An unusual shift has emerged in Bitcoin’s transaction composition. Runes-related transactions now account for a larger share of total network transactions, yet they contribute only about 5–10% of total fee revenue. This is largely because many Runes transactions are submitted with very low fees. In an environment where blockspace is relatively cheap and competition is limited, these low-fee transactions are still included in blocks, inflating transaction counts without generating meaningful fee income.

The combination of high transaction volume and minimal fee contribution from Runes raises concerns about the true demand for Bitcoin blockspace. When a significant portion of network throughput produces negligible fee revenue, it highlights a growing mismatch between network usage and economic value creation. As block subsidies continue to decline with each halving cycle, the long-term sustainability of miner revenue will increasingly depend on transaction fees paid by users willing to compete for scarce blockspace.

Bitwise sets ticker and fee for Hyperliquid ETF, signaling imminent launch

Bitwise has filed an amended registration statement for its proposed Hyperliquid ETF, locking in a ticker symbol and management fee — moves that typically indicate an ETF launch is approaching. According to the filing with the SEC, the Bitwise Hyperliquid ETF is expected to trade on NYSE Arca under the ticker BHYP and carry a 0.67% annual management fee.

Analysts noted that the inclusion of finalized economics, a ticker, and updated effectiveness language are markers usually seen late in the approval process. Bitwise first filed for the ETF in September, becoming the first asset manager to seek U.S. approval for a spot fund tied to Hyperliquid’s native HYPE token, putting it ahead of rivals such as 21Shares, which has yet to disclose similar details.

The ETF aims to track the value of HYPE held by the trust, net of expenses, while also generating additional returns through staking. Anchorage Digital Bank is listed as custodian. The filing adds to growing signs that issuers are pushing forward with crypto ETFs linked to newer Layer 1 networks, as investor interest expands beyond bitcoin and ether amid Hyperliquid’s rapid growth in onchain derivatives trading.

Ripple taps Wormhole to expand RLUSD to Layer 2 networks

Ripple plans to launch its RLUSD stablecoin on Layer 2 blockchains next year with the help of cross-chain interoperability provider Wormhole. The company is already testing RLUSD on Optimism, Base, Ink, and Unichain using Wormhole’s Native Token Transfers (NTT) standard, ahead of a full rollout pending regulatory approval.

RLUSD, which debuted last December on the XRP Ledger and Ethereum, now has a total supply exceeding $1 billion. Ripple said the expansion reflects its belief that the future of crypto is multichain and that stablecoins must be available wherever demand exists, particularly across both institutional finance and the onchain economy.

The move builds on Ripple’s earlier integration with Wormhole to enhance XRP Ledger’s multichain interoperability. At the same time, Ripple is moving closer to greater regulatory certainty, after the U.S. Office of the Comptroller of the Currency conditionally approved a national trust bank charter for Ripple. If finalized, the approval would place RLUSD under both state and federal oversight — a dual regulatory framework the company says no other stablecoin currently has.

Circle acquires Interop Labs team and technology to boost cross-chain interoperability

Circle, the issuer of the USDC stablecoin, has acquired the team and proprietary technology of Interop Labs, the original developer behind the Axelar Network. As part of the deal, Interop Labs CEO and co-founder Sergey Gorbunov will join Circle, with the acquisition expected to close early next year.

Circle said the move is aimed at enhancing interoperability for digital assets issued on Arc, its blockchain infrastructure platform. The company praised Interop Labs’ engineering and product teams, highlighting their expertise as a key factor behind the acquisition. Circle’s leadership reiterated its broader commitment to cross-chain interoperability, building on existing products such as USDC, CCTP, and other on-chain infrastructure solutions.

The company clarified that the acquisition only covers Interop Labs’ proprietary intellectual property and does not include Axelar’s open-source codebase. That open-source development will be transitioned to Common Prefix, which will take over from Interop Labs. According to Gorbunov, Axelar will continue to operate as an open-source project, with efforts underway to ensure continuity and long-term support. The move comes as U.S.-based stablecoin issuers increasingly focus on interoperability, amid expectations that new legislation will significantly accelerate stablecoin adoption.

PayPal launches PYUSD Savings Vault on Spark, expanding DeFi yield options

PayPal has launched the PYUSD Savings Vault on decentralized lending platform Spark, offering stablecoin holders a new way to earn yield on their PYUSD. The vault currently advertises an APY of around 4.25%, in line with yields on other major stablecoin vaults such as USDC, USDT, and Sky’s USDS. Returns are anchored to the Sky Savings Rate, which is funded by revenue from overcollateralized loans, real-world asset investments, and liquidity provision within the Spark ecosystem.

The new vault is part of Spark’s Savings V2 product line and uses the Spark Liquidity Layer to deploy PYUSD deposits across Spark’s balance sheet, including lending strategies on SparkLend. According to documentation, 90% of deposits are allocated to yield-generating strategies, while 10% is reserved for instant withdrawals. Interest accrues via the spPYUSD accumulative token issued to depositors, with allocations spanning stablecoins, onchain crypto lending, AAA corporate debt, OTC crypto lending, and Treasurys.

PYUSD was previously integrated into SparkLend in September, enabling supply and borrowing, with PayPal and Spark targeting $1 billion in deposits. The launch of the Savings Vault is expected to further accelerate PYUSD adoption in DeFi, as the stablecoin’s market capitalization reaches about $3.8 billion following Paxos receiving a federal banking charter in the United States.

MetaMask adds native Bitcoin support, accelerating its multi-chain strategy

MetaMask has officially rolled out native Bitcoin support, marking a significant milestone in its multi-chain expansion strategy. The update allows users to buy BTC directly with fiat, execute on-chain Bitcoin transfers, and swap between BTC and EVM-native assets as well as SOL within the wallet. Initially, the integration supports SegWit addresses, with Taproot support expected to follow in upcoming releases.

The move comes amid a series of feature launches this year, including Solana support, integrated perpetuals trading powered by Hyperliquid, a Polymarket on-ramp, and the launch of the mUSD stablecoin. At the same time, parent company Consensys is preparing for a potential IPO, while MetaMask has signaled an imminent rollout of its MASK rewards program, described as one of the largest on-chain rewards initiatives to date, with more than $30 million in incentives on the Linea network. According to MetaMask, users who swap into BTC via the wallet will also earn MetaMask Rewards points.

SEC Chairman Paul Atkins warned that without proper policy safeguards, crypto and blockchain could be exploited by the federal government as tools for mass financial surveillance, posing serious risks to privacy and individual liberty. While acknowledging regulators’ strong appetite for data, he argued that bulk surveillance is fundamentally incompatible with a free society. Atkins emphasized that the crypto industry is also capable of building effective illicit-finance protections without undermining user privacy. Under his leadership, the SEC is advancing President Donald Trump’s “Project Crypto,” focusing on clarifying regulatory boundaries, encouraging innovation, and coordinating with the CFTC, while cautioning against turning the crypto ecosystem into a financial “panopticon.”

Bitcoin’s 30-day simple moving average (SMA) hashrate has just posted its sharpest decline since the April 2024 halving, according to Matthew Sigel, head of digital assets research at VanEck. Hashrate represents the total computational power securing the Bitcoin network, making sharp moves in this metric a key signal of structural shifts on the mining side.

Scale of the decline and immediate drivers

Jack Kong, former chairman of Canaan, said that as many as 400,000 mining machines have recently gone offline in China. According to Kong, total computing power fell by roughly 100 exahashes per second (EH/s) in a single day, an estimated 8% drop. Assuming an average capacity of 250 terahashes per second (TH/s) per unit, this implies that more than 400,000 machines were shut down.

Kong also noted that mining farms in Xinjiang were shutting down one after another, suggesting that the United States benefited indirectly in terms of hashrate share without any direct intervention.

Economic pressure on miners

Data from Glassnode shows that total network hashrate has fallen from around 1.1 zettahashes per second (ZH/s) to just above 1 ZH/s. This retracement coincides with sustained pressure on miner revenues, with the hash price hovering near $37 per petahash per second (PH/s), close to a five-year low.

In the short term, miners may see some temporary relief. Bitcoin mining difficulty is currently projected to decline by roughly 3%, which would modestly improve miner economics. Difficulty now stands at about 148.2 trillion (T), just below its all-time high.

A pullback in hashrate does not necessarily signal long-term weakness for Bitcoin. Instead, it reflects the network’s built-in self-adjustment mechanism: as less efficient miners exit, conditions become more balanced for those that remain. Over the medium term, a recovery in Bitcoin’s price or a decline in energy costs could put hashrate back on a growth trajectory.