Crypto Breaking

Aptos Labs is rolling out a built-in privacy layer on its mainnet with the launch of Confidential APT, a privacy-enabled token pegged 1:1 to Aptos (APT). The project aims to conceal token balances and transfer amounts using zero-knowledge proofs while preserving the ability to verify transactions. The feature cleared a governance proposal with near-unanimous support, marking a notable step in balancing user privacy with regulatory transparency.

Sherry Xiao, a founding engineer at Aptos Labs, described Confidential APT as a practical response to a long-standing trade-off in blockchain design. In an interview with Cointelegraph, Xiao explained that the new token can protect users from wallet profiling and targeted scams without compromising the ability to audit, should it be required by authorities.

In traditional blockchains, the ledger’s transparency can deter broader adoption by exposing sensitive financial information. The introduction of Confidential APT directly tackles this concern by masking balances and transfer amounts while keeping the underlying transaction data verifiable on-chain. This nuance differentiates Confidential APT from other privacy-focused chains where addresses and activity can be harder to link to on-chain actions.

Key takeaways

Confidential APT hides on-chain balances and transfer amounts, but keeps wallet addresses and transaction verification visible.

The feature was approved by Aptos governance in a near-unanimous vote and is pegged 1:1 to Aptos (APT).

Auditor keys can be enabled through governance for KYC/AML investigations, balancing privacy with regulatory needs.

Use cases span individuals seeking privacy to protect against profiling and employers or treasuries seeking more confidential on-chain workflows.

Adoption dynamics will hinge on real-world volumes and the ability to integrate Confidential APT into tax and compliance processes.

Privacy with a guardrail for compliance

Confidential APT introduces a controlled privacy paradigm. By leveraging zero-knowledge proofs, it conceals basic privacy-sensitive data such as balances and transfer amounts, while the wallet addresses involved in a transaction and the verification of that transaction remain visible. This preserves a layer of transparency for investigators and auditors while making everyday use less exposed to data-driven misuse.

Xiao emphasized that the system is designed to meet Know-Your-Customer and anti-money-laundering checks in the event of an investigation or subpoena, using auditor keys. Such keys would be activated only after a governance vote, ensuring that privacy remains the default for users but not an absolute shield in legitimate inquiries.

“This approach allows relevant parties to access information like transfer amounts for investigations, while preserving privacy as the default for users.”

The architecture stands in contrast to privacy-centric coins where transaction metadata can be hidden more aggressively. By keeping addresses and verification data visible, Confidential APT aims to avoid the regulatory and interoperability pitfalls that sometimes accompany more opaque privacy models.

Workplace privacy and on-chain finance

Beyond personal privacy, Xiao pointed to enterprise use cases where Confidential APT could alleviate operational frictions. In a world where payroll, treasury moves, and settlement flows happen on-chain, visible balances and salary data can create unwelcome exposure. She argued that confidential balances directly address these concerns, enabling companies to run on-chain payroll and financial operations without broadly broadcasting sensitive figures.

“If a company runs payroll on-chain with visible amounts, every employee’s salary is permanently public — to coworkers, competitors, recruiters, everyone,” she said. “Same with treasury moves, settlement flows, trading strategies.”

While enterprises may adopt Confidential APT at a measured pace, the technology is positioned as a bridge between privacy and accountability. Xiao noted that many organizations view the current privacy landscape as an “operational dealbreaker” for on-chain workflows, and that Confidential APT could change the calculus for how they deploy blockchain-based processes.

Adoption dynamics and what to watch

Industry observers will be watching how quickly individuals adopt Confidential APT versus the pace at which businesses integrate it into compliance pipelines and payroll systems. Xiao cautioned that it will take time to bake the privacy coin into tax reporting and regulatory workflows, even as the six-month on-chain proving ground becomes a meaningful milestone. If Confidential APT sustains solid volume and demonstrates stability over an extended period, it could shorten enterprise sales cycles by providing a concrete evidence base for practical privacy in action.

The broader crypto ecosystem has long wrestled with the tension between privacy and compliance. Aptos’ approach with Confidential APT injects a concrete, governance-enabled mechanism for privacy that remains auditable. The outcome may influence how other layer-1s and layer-2s think about privacy by design, especially in contexts where on-chain finance intersects with payroll, treasuries, and corporate governance.

As adoption unfolds, readers should monitor governance activity around auditor keys, the alignment of Confidential APT with tax reporting channels, and the volume metrics on mainnet. These signals will help determine whether the privacy layer becomes a durable fixture or a pilot that tests the balance between confidentiality and oversight in real-world usage.

In a broader sense, the timeline for pragmatic privacy in crypto—toward a form of protection that does not sacrifice accountability—remains the story to watch. If Confidential APT proves robust after six months of real-world use, it could set a precedent for how enterprises and individuals negotiate privacy within regulated environments.

Cointelegraph will continue to track the rollout, auditability safeguards, and user adoption as Confidential APT navigates the early stages of on-chain privacy with governance-backed controls.

This article was originally published as Aptos Announces Privacy Coin That Balances Safety and Transparency on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

A U.S. Army master sergeant appeared in a Manhattan federal court and pleaded not guilty to charges alleging he used nonpublic information about a classified January raid in Venezuela to place bets on Polymarket, the crypto-backed prediction market. Gannon Ken Van Dyke faces five counts, including three that violate federal commodities laws, one wire fraud count and one unlawful monetary transaction. The case could carry a maximum sentence of up to 60 years in prison if convicted. He was released on a $250,000 bond, surrendered his passport, and must adhere to travel restrictions. His next court date is scheduled for June 8.

According to prosecutors, Van Dyke, a master sergeant in the U.S. Army, was involved in planning and execution of “Operation Absolute Resolve,” a special-forces raid in Caracas that allegedly led to the capture of Nicolás Maduro. They contend he used information about the raid to buy “yes” shares in Polymarket contracts, placing about 13 bets on markets tied to Maduro and Venezuela.

The specific markets cited by prosecutors include bets on: “US Forces in Venezuela by January 31,” “Maduro out by January 31,” “Will the U.S. invade Venezuela by January 31,” and “Trump invokes War Powers against Venezuela by January 31.” DOJ prosecutors said Van Dyke wagered more than $33,000 across these markets and others. They also asserted that he profited nearly $410,000 as some bets resolved in the affirmative for the “yes” outcomes.

For context, Polymarket is a decentralized-style platform that allows users to trade on event outcomes using cryptocurrency or fiat-pegged tokens. The government’s filing notes that reports of unusual trading activity in Maduro-related contracts on Polymarket had appeared in the press and on social media prior to the charges.

The Department of Justice’s case is complemented by a separate action from the U.S. Commodity Futures Trading Commission, which has brought parallel insider-trading allegations against Van Dyke tied to Polymarket activities. The overlapping actions illustrate the regulatory sensitivity around prediction markets and the potential misuse of nonpublic information.

Cointelegraph reported on the charges, citing the DOJ’s indictment. For reference, the original coverage can be found here: Cointelegraph.

Key takeaways

One active-duty U.S. Army master sergeant stands accused of using classified information from a Venezuela raid to place bets on Polymarket, facing five counts including three federal commodities-law violations, wire fraud, and unlawful monetary transaction.

The alleged operation, described as “Operation Absolute Resolve,” is claimed to have involved a raid in Caracas that prosecutors say led to Maduro’s capture, with the soldier allegedly leveraging nonpublic information for trading advantage.

Daunting penalties are on the table—up to 60 years in prison if convicted on all counts—coupled with a $250,000 bond, passport surrender, and travel restrictions.

Prosecutors say Van Dyke’s Polymarket activity totaled more than $33,000 across multiple Maduro- and Venezuela-related markets, with reported profits near $410,000 as some bets resolved in the affirmative.

In parallel, the Commodity Futures Trading Commission has pursued a separate insider-trading action, underscoring renewed regulatory scrutiny of prediction markets and the risk of nonpublic information leaking into wagering contracts.

Indictment details and what comes next

The charges against Van Dyke enumerate three counts of violating federal commodities laws, one count of wire fraud and one count of unlawful monetary transaction. If found guilty on all counts, he could face a combination of prison time and financial penalties. The defense will have the opportunity to challenge the government’s characterization of the trading activity, the chain of information, and the attribution of intent. The judge also imposed travel restrictions while the case proceeds.

The government’s narrative centers on Van Dyke’s access to sensitive information about a planned operation and his subsequent use of that information to place “yes” bets on various Polymarket contracts. The markets cited by prosecutors were explicitly tied to timelines around January 31, including potential scenarios involving U.S. forces in Venezuela and actions by Maduro or the U.S. government. The prosecution argues that the bets and the timing indicate an attempt to monetize privileged information.

The regulatory overlay adds a further dimension to the case. The CFTC’s parallel action highlights how authorities are treating prediction-market platforms as potential conduits for insider trading, especially when nonpublic information intersects with market activity. Observers will be watching how this case interacts with broader policy discussions about the permissible boundaries of prediction markets and the safeguards needed to prevent misuse of sensitive military information.

The next court appearance for Van Dyke is scheduled for June 8, when the proceedings will advance toward trial on the charges as outlined by federal prosecutors. In the meantime, investors and users of prediction markets will be paying attention to how regulators weigh the linkage between classified information, military operations, and finance in a rapidly evolving digital-asset landscape.

Readers tracking this case should watch for updates on both the criminal proceedings and the CFTC action, as outcomes could influence how prediction markets are perceived and regulated moving forward.

This article was originally published as Crypto News: US Soldier Pleads Not Guilty in Maduro Operation Case on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Robinhood’s shares slid 9.4% in after-hours trading after its first-quarter results failed to meet consensus estimates, with crypto revenue and trading volume trending materially lower year over year. The results underscore how a sluggish crypto environment continues to weigh on the platform, even as the company doubles down on infrastructure investments and new product lines.

In the quarter, Robinhood reported crypto transaction revenue of $134 million, down 47% from $252 million a year earlier, while crypto trading volume declined 48% to $24 billion. The firm posted earnings per share of $0.38 and revenue of $1.07 billion, both modestly below analysts’ expectations, contributing to the after-hours stock pullback. Net income rose 3% year over year to $346 million, reflecting strength elsewhere in the business during a challenging crypto cycle.

According to the company’s Q1 earnings report, the declines in crypto revenue and activity were largely tied to broad price swings in the crypto markets. Yet Robinhood’s leadership remains focused on longer-term bets around crypto infrastructure and assets with real-world utility. CEO Vladimir Tenev framed the current softness as a transitory phase within a broader shift toward more foundational crypto technologies, saying, “Price moves up and down, but what I can tell you is crypto as technology infrastructure is going to be big, and we’re investing. We’re at the very beginning of what’s gonna be a tokenization supercycle.”

Robinhood is among several retail trading platforms using the bear market to broaden their blockchain portfolios and diversify revenue beyond traditional stock trading. The company has positioned itself as a developer of crypto infrastructure while expanding into tokenized and prediction-based offerings that aim to broaden user engagement and utility on the platform.

Key takeaways

Crypto transaction revenue declined 47% year over year to $134 million, and crypto trading volume fell 48% to $24 billion in Q1, reflecting ongoing market headwinds.

Overall Q1 results missed market expectations: earnings per share of $0.38 and revenue of $1.07 billion were below consensus by about 11.6% and 6.1%, respectively, while net income rose 3% to $346 million.

Robinhood’s Predictions market, operated through Kalshi, traded 8.8 billion event contracts in Q1, up 780% from the previous year’s period as the platform prompts higher engagement with forecast-based trading.

The company’s broader “other” trading category surged, rising 320% year over year to $147 million, helping offset crypto-related softness. Bitstamp, Robinhood’s acquired exchange, generated $42 billion in trading volume in Q1, though this was down 13% from Q4 2025.

Predictions platform anchors growth expectations

Robinhood’s foray into prediction markets—through a platform tied to Kalshi—illustrates the company’s pivot toward diversified revenue streams that leverage its existing retail base. The Q1 data show robust activity on the predictions frontier, with an implied trajectory of higher trading volumes in the near term. Tenev signaled ambition for continued growth in this area, suggesting that the product could become a more meaningful contributor to overall platform activity as users experiment with event-based contracts and forecast markets.

In a separate note, Robinhood projected that April trading volume for the Predictions product could reach around $3 billion, a figure that would mark a strong month relative to its rollout in March 2025. The momentum in this segment underscores how the company is attempting to balance crypto-related declines with non-crypto revenue streams that leverage its large retail audience.

Bitstamp and the revenue mix

Notably, Bitstamp’s activity is not included in the crypto revenue line, even though the exchange represented a material portion of Robinhood’s crypto footprint since its acquisition in June 2025. Bitstamp reported $42 billion in trading volume for the quarter, representing a 13% drop versus the previous quarter. The inclusion of Bitstamp’s data in overall platform results highlights how the company’s crypto ambitions extend beyond on-site retail activity to more institutional-grade and cross-product infrastructure.

Meanwhile, the “other” trading category—encompassing products such as Robinhood Predictions—posted a strong 320% year-over-year surge to $147 million in Q1. This counterbalancing strength points to a broader strategy: reduce reliance on the volatility-prone crypto economy by building complementary products that appeal to a wide retail audience seeking diverse ways to trade and speculate.

Strategy in a bear market: infrastructure, utility, and tokenization

Robinhood’s leadership has repeatedly framed crypto as a foundational layer—an infrastructure bet rather than a pure retail trading play. In the current environment, with crypto prices moving irregularly and volatility subdued relative to peak cycles, the company is leaning into product areas that could drive structural growth over the long horizon. The tokenization narrative referenced by Tenev points to a broader industry shift—from spot trading and speculation to the securitization and digitization of traditional assets, financial products, and even everyday commodities.

For investors, the development signals a potential shift in how Robinhood monetizes its platform. While crypto revenue remains sensitive to market cycles, growth in Predictions and other trading products could offer steadier upside and broaden the company’s addressable market. The challenge will be sustaining user adoption and converting elevated engagement in these new products into durable revenue, especially as regulatory interpretations of tokenization and prediction markets continue to evolve.

What the numbers imply for Robinhood’s roadmap

The Q1 results illustrate a company navigating a bifurcated landscape: crypto economics that are still recovering from a cyclic downturn and non-crypto offerings that are growing rapidly enough to offset some of the weakness. The combination of crypto softness with strong performance in non-crypto trading lines suggests that Robinhood’s multi-product strategy could help stabilize revenue over time, even as it remains exposed to the volatility of the crypto market.

As the company continues to invest in crypto infrastructure—while pursuing real-world utility assets—the path forward will likely hinge on three levers: the pace of user adoption for tokenization and related services; the scalability and profitability of the Predictions platform and other non-crypto products; and the ability to integrate Bitstamp’s activity into a cohesive, compliant revenue engine that complements retail trading activity.

Readers should watch for follow-up cues in the next earnings cycle regarding user growth in non-crypto products, changes in crypto usage as market conditions evolve, and any regulatory developments that might influence tokenization and prediction-market offerings. The evolving balance between riskier crypto revenue and more diversified income streams will shape Robinhood’s trajectory as it extends its reach beyond a single asset class into a broader, multi-product fintech platform.

This article was originally published as Robinhood Stock Slides 9% as Q1 Crypto Activity Falls Nearly 50% on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

The U.S. Commodity Futures Trading Commission has filed a federal lawsuit against the state of Wisconsin, alleging that federal law governs prediction-market contracts and that Wisconsin’s actions to curb or criminalize these markets interfere with that framework. The complaint follows Wisconsin’s own litigation against five platforms—Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase—each of which the state contends operates prediction-market activity subject to state gaming licensing requirements.

The CFTC said in a statement that the lawsuit against Wisconsin was brought “in response to the state’s lawsuits against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase, five CFTC-regulated prediction markets.” CFTC Chairman Michael Selig emphasized that states cannot contravene Congress’s clear directive on financial market regulation. “States cannot circumvent the clear directive of Congress,” he stated. “Our message to Wisconsin is the same as to New York, Arizona, and others: if you interfere with the operation of federal law in regulating financial markets, we will sue you.”

According to the agency, the action is its fifth affair with a state seeking to halt prediction-market activity. The CFTC previously pursued complaints against New York and, earlier this month, filed suits against Arizona, Connecticut, and Illinois after those states moved to regulate or shut down platforms operating event contracts. The Wisconsin filing underscores the ongoing, broader legal clash over whether state action may constrain federally regulated markets or whether such markets remain exclusively within federal oversight.

Michael Selig speaking on stage at Bitcoin 2026 in Las Vegas. Source: YouTube

Wisconsin’s lawsuit, filed in federal court, mirrors the state’s broader position that prediction markets that offer sports-related event contracts constitute illegal gambling requiring state gaming licenses. The CFTC and the platforms have consistently rejected that view, arguing that such contracts fall under federal regulation as designated contract markets. The agency contends that Wisconsin’s gambit to criminalize or block these markets would undermine the federal framework established to regulate national swaps markets.

In its complaint, the CFTC argued that Wisconsin’s attempts to criminalize federally regulated markets intrude on the exclusive federal scheme Congress designed to oversee national swaps markets. The agency sought a declaration that state gambling laws do not apply to CFTC-regulated designated contract markets and a permanent injunction preventing Wisconsin from enforcing state actions against prediction markets. The complaint named Wisconsin Governor Anthony Evers, Wisconsin Attorney General Josh Kaul, and the Wisconsin Gaming Division and its administrator, John Dillett, as defendants alongside the state’s actions.

State officials were contacted for comment, but no additional statements were provided in the initial disclosures. The legal maneuver comes amid a broader policy dispute about the proper locus of regulation for prediction markets, a class of financial infrastructure that has evolved rapidly alongside crypto-enabled platforms and traditional financial market mechanisms.

Key takeaways

The CFTC asserts exclusive federal jurisdiction over prediction-market event contracts, arguing that state gaming laws cannot override the federally regulated framework for designated contract markets.

The Wisconsin action targets five platforms—Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase—in the context of Wisconsin’s broader claim that prediction markets operate as illegal gambling without proper licensing.

This case marks the fifth time the CFTC has sued a state to block state-level actions against prediction markets, following recent suits against New York, Arizona, Connecticut, and Illinois.

The complaint explicitly links the federal regulatory regime to the operation of designated contract markets, seeking injunctive relief to prevent Wisconsin from taking enforcement actions against these markets.

For market participants, the proceedings underscore ongoing regulatory contention around jurisdiction, licensing, and compliance requirements for prediction-market platforms in the United States, with implications for AML/KYC frameworks and licensing regimes.

Federal framework versus state enforcement: legal framing and implications

The core legal question in Wisconsin’s dispute centers on the proper locus of regulation for prediction-market contracts, which are traded on designated contract markets under federal law. The CFTC’s position rests on the argument that the contracts—designed to settle on the outcome of real-world events such as sports results or other occurrences—are financial instruments that fall within the federal regime administered by the CFTC, and that designated contract markets operate under federal preemption. In this view, state gambling statutes and licensing schemes cannot legitimately compel or criminalize activity that the federal government has already cleared for operation under the designated contract market framework.

Observers note that the CFTC’s ongoing strategy is to defend a narrow yet potentially far-reaching jurisdictional principle: that federal preemption governs the operation of national markets that rely on centralized, federally supervised trading venues. By layering state gaming or gambling statutes atop or alongside this regime, Wisconsin argues a traditional state authority to license or prohibit activities within its borders. The dispute thus embodies a fundamental tension in U.S. financial regulation: the balance between state-level enforcement prerogatives and the reach of federal market governance, particularly as new market mechanisms emerge at the intersection of traditional finance and digital platforms.

From a policy and enforcement perspective, the case contributes to the broader debate about how to regulate fast-evolving, technology-enabled markets. If federal courts affirm the CFTC’s exclusive-oversight position, platforms operating prediction markets could gain greater regulatory clarity and uniform compliance expectations, potentially reducing the cost and complexity of navigating multiple state regimes. Conversely, if states succeed in asserting licensing or prohibitory authority, a patchwork regulatory environment could emerge, complicating cross-state operations and raising questions about the enforceability of federal prerogatives in the face of diverse state laws.

Implications for platforms, compliance, and market structure

The Wisconsin action explicitly centers on five platforms that the state contends operate in a regulated space that requires state gaming licenses. Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase are named in the litigation, with the CFTC asserting that their activities fall under the federal designation of contract markets and are therefore subject to federal oversight rather than state gambling statutes. The dual-layered enforcement posture—state lawsuits paired with federal action—highlights the complex compliance implications for platforms that bridge traditional financial markets, crypto assets, and prediction markets.

For regulated venues, the case underscores the importance of robust, federally compliant gatekeeping measures, including registration as a designated contract market and adherence to the range of obligations that accompany such status. It also emphasizes the need for clear customer due diligence and transaction monitoring to remain aligned with AML/KYC frameworks prominent in federal oversight. While the platforms named have operated with varying degrees of federal recognition, this litigation signals that regulators are prepared to assert that federal permission is a prerequisite to offering prediction-market contracts on U.S. soil.

Beyond platform-level implications, the proceedings have bearings on licensing, cross-border access, and the interface with other regulatory bodies, including the SEC, DOJ, and financial-market authorities. The broader policy environment—characterized by heightened scrutiny of crypto-enabled financial services—may prompt exchanges and institutions to reassess product catalogs, risk controls, and interagency coordination to meet evolving compliance expectations. The case also intersects with ongoing debates about market integrity, insider trading risk, and transparent governance of event-driven instruments in a rapidly changing market ecosystem.

Closing perspective

The Wisconsin litigation reinforces a continuing crosswinds between state authority and federal market regulation in the United States, particularly as prediction markets evolve alongside traditional finance and crypto-native platforms. The outcome will shape how states calibrate their enforcement actions and how platforms structure compliance programs to align with a federal preemption narrative. As courts adjudicate these questions, observers should watch for rulings that clarify the boundaries of state licensing power and the resilience of the CFTC’s designated contract market framework in a rapidly changing regulatory landscape.

This article was originally published as CFTC Challenges Wisconsin Jurisdiction in Prediction Markets on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin’s recent 20% surge from its February trough traces a clear throughline: the accumulation by Strategy, a Bitcoin treasury firm known for its perpetual preferred stock STRC. In a eight-week window, Strategy’s buying spree appears to have been the single largest driver of the move, according to Bitwise chief investment officer Matt Hougan, who notes that Strategy has added roughly $7.2 billion in Bitcoin over that period. The development comes as ETFs and longtime holders continue to buy, but the STRC-backed buying is shaping the market’s narrative about corporate treasury demand for BTC.

Prices have traded in a tight band around $75,000 to $79,000 over the past week, according to CoinGecko. As of midweek, Bitcoin hovered near $76,500, representing a roughly 21% rebound from its Feb. 6 low of about $62,800. The backdrop is a market that has been cheered by renewed buying from institutional vehicles while retail participation remains a variable in the near term.

Strategy’s growth as a Bitcoin holder stands out in the sector. The firm, already the largest publicly listed corporate holder of Bitcoin, added 3,273 BTC for about $255 million between April 20 and April 26, lifting its total to 818,334 BTC. This level simultaneously eclipses the holdings at BlackRock, which counts roughly 812,300 BTC in custody for its clients. The contribution from STRC-financed buys has become a focal point in the ongoing debate about whether corporate balance sheets can meaningfully move the BTC price higher over sustained periods.

Source: Lookonchain

Key takeaways

Strategy’s STRC-driven purchases helped inject approximately $7.2 billion of Bitcoin into its balance sheet over eight weeks, elevating its holdings to 818,334 BTC and surpassing BlackRock’s on-record pile.

The STRC instrument, a perpetual preferred stock yielding 11.5%, is marketed as a financing tool that funds Bitcoin buys with a cushion of more than $40 billion in Bitcoin holdings, making the yield comparatively attractive vs. treasuries or private credit.

Industry observers expect Strategy’s purchases to continue, supported by ongoing STRC issuance, with the implication that further inflows could push Bitcoin’s supply-demand dynamics further in the near term.

Analysts speculate about long-run implications, including the possibility that Strategy could match, or even surpass, the holdings attributed to Bitcoin’s creator, Satoshi Nakamoto, should the pace persist and Bitcoin’s price stay supportive.

Strategy’s strategy: STRC, leverage, and the open market

Strategy’s core tactic hinges on STRC, the company’s perpetual preferred stock. The company indicates that proceeds from STRC offerings are deployed to purchase Bitcoin on the open market, effectively using equity-like leverage to expand its BTC reserve. In a market where traditional junk-bond yields can dip below 7% in a rising-rate environment, STRC’s roughly 11.5% yield—backed by a sizable Bitcoin reserve—appears attractive to a segment of investors seeking higher income with Bitcoin risk as a cushion. Hougan has emphasized that STRC’s yield, in the current climate, makes it appealing relative to other fixed-income alternatives and private credit markets that have seen liquidity strains.

Hougan’s remarks came alongside a broader acknowledgement that while ETFs have been supportive—adding $3.8 billion of Bitcoin since March 1—Strategy has been the standout factor behind the rally. He attributes the bulk of recent upside to Strategy’s persistent buying pattern, suggesting that the STRC money stack is a primary driver in the move higher rather than a one-off event.

According to Hougan, “Strategy issues STRC because it wants to buy more Bitcoin. Most of the capital raised by issuing STRC is used to purchase BTC on the open market.” This mechanism has, over time, positioned Strategy as a benchmark for corporate treasury activity in the Bitcoin space, even as skeptics question whether such large, quasi-levered purchases are sustainable from a capital markets perspective.

The company’s disclosure noted that the most recent 2026 tranche included a substantial purchase of 34,164 BTC on a single day in April, while the smallest disclosed buy in 2026 was 855 BTC in February. The wide spread in daily purchases underscores the variability inherent in the STRC funding model and raises questions about how future issuances might calibrate the pace of BTC accumulation for Strategy.

For investors, the central question is whether STRC-driven buying can be sustained at current or higher BTC price levels. Hougan suggested that Strategy could “hypothetically pay existing dividends for 42 years” at current BTC prices, a calculation that assumes cash flows stay intact and Bitcoin remains robust. If Bitcoin appreciates 20% annually, he noted, STRC’s dividend coverage could extend indefinitely. In other words, the enthusiasm around STRC rests on a combination of Bitcoin’s price trajectory and the company’s ongoing access to capital through STRC issuances.

Related coverage has highlighted the broader market interest in Strategy’s approach and how it interacts with the traditional tech-exposed narrative of corporate balance sheet expansion into Bitcoin. The dynamic has drawn attention not only in crypto circles but also among fund managers watching how institutions and high-net-worth groups allocate cash flows to digital assets in a market with relatively limited permanent capital structures for such exposure.

Can Strategy outrun the originator of Bitcoin?

The pace of Strategy’s purchases has sparked intriguing forecasts about long-run ownership milestones. Galaxy Digital’s Alex Thorn posited that if Strategy maintains its current tempo, the firm could exceed the holdings attributed to Nakamoto—the pseudonymous creator of Bitcoin—within about two years. Nakamoto’s wallets are believed to hold around 1.1 billion BTC, roughly 5.5% of the total supply. To reach that level, Strategy would need to accumulate roughly 277,666 additional coins at current prices.

In the market’s current discourse, these projections illustrate a broader trend: a handful of corporate and high-net-worth actors could, in theory, accumulate meaningful share of the supply, potentially exerting a tangible influence on liquidity and price discovery. Yet, the path from billions of dollars in purchases to a multi-billion BTC stake remains contingent on continued access to capital, Bitcoin’s price trajectory, and regulatory developments that may alter the risk profile of such wieldy ownership.

Bitcoin purchases by Strategy have not been uniform in size; the company has demonstrated a willingness to deploy capital in bursts. The record-dollar one-day buy this year—34,164 BTC—was followed by smaller rounds, with 3,273 BTC added in a single week in late April. Market observers caution that while STRC provides a financing mechanism, it does not guarantee a uniform, uninterrupted surge in BTC supply, and that the company’s strategy could evolve as market conditions shift.

To place Strategy’s activity in context, it’s helpful to compare it with public market holders. BlackRock’s Bitcoin Trust, for instance, reported holdings in the vicinity of 812,300 BTC, illustrating that Strategy’s aggregate stake—built through STRC funding—now sits at the top tier of corporate BTC exposure. The ongoing question is whether Strategy’s approach will prove scalable over time or whether it will encounter tighter capital markets dynamics as macro conditions evolve.

It’s also worth noting the broader sentiment towards dividend-based crypto strategies. The dynamic raised by Saylor, who has argued that MicroStrategy could sustain dividends indefinitely if Bitcoin’s price remains favorable, remains a point of reference in investor conversations about the feasibility of long-term, high-yield BTC ownership. The assumption that strategic equity issuance can fund ongoing BTC purchases without eroding capital structure will be tested as markets unfold and as macroeconomic pressures shape financing costs for such vehicles.

As analysts keep their eyes on the next stage of Strategy’s program, the question for readers is simple: will STRC-driven buying continue to be a meaningful tailwind for BTC, or will market conditions require recalibration of the financing approach? With Bitcoin trading around mid-70s thousand levels and the STO’s stableyield narrative in play, the next few months could reveal whether Strategy’s model represents a durable path for institutional demand or a high-water mark in a rapidly evolving ecosystem.

Related data and commentary from Cointelegraph note that Strategy’s Saylor-linked signals and the company’s distinct dividend play have attracted attention from both retail and institutional investors, illustrating a broader appetite for diversified, corporate-backed exposure to Bitcoin. The ongoing discussion underscores the market’s interest in how unconventional financing tools interact with Bitcoin’s supply dynamics and price formation.

Source data and commentary gathered from Bitwise’s CIO memo, CoinGecko price data, and industry analysis cited in the article reflect ongoing market discourse about corporate strategy in crypto asset management. As Strategy’s STRC program evolves, readers should watch for any regulatory commentary on perpetual preferred stock structures tied to crypto purchases and any updates on Strategy’s latest buying cadence and total BTC holdings.

According to Bitwise’s Matt Hougan, Strategy’s STRC-enabled purchases have become the “single biggest factor” driving Bitcoin’s latest rally, reinforcing the idea that corporate treasury strategy can meaningfully influence the market beyond traditional ETF flows and private holdings. The next chapter will reveal whether the STRC model can sustain its pace in a volatile crypto market and how investors will price this continued, strategy-driven risk premium in Bitcoin’s price ecosystem.

This article was originally published as Bitcoin Rebounds From February Lows on Systematic, Regular Buying on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

A Manhattan federal judge has denied Sam Bankman-Fried’s bid for a new trial, saying there was no new evidence or witnesses to warrant reopening his fraud-and-money-laundering case. U.S. District Judge Lewis Kaplan, who presided over the 2023 trial and later sentenced Bankman-Fried to 25 years in prison, rejected the defense’s claims in an order issued this week.

Bankman-Fried had sought a new trial in February to be overseen by a different judge—a rare maneuver filed without his attorneys’ input while an appeals court was weighing the conviction and sentence. Kaplan’s ruling makes clear that he viewed the motion as lacking merit and as part of an effort to rehabilitate Bankman-Fried’s public image after FTX’s collapse.

“This motion appears to be one part of a plan to rescue his reputation that Bankman-Fried hatched and even committed to writing after FTX declared bankruptcy but before he was indicted.”

In the order, Kaplan specifically rejected the assertion that three former FTX executives could counter the government’s position that FTX was insolvent. He described the claim as “baseless on multiple independently sufficient levels.”

Bankman-Fried had argued that two former FTX executives who did not testify—Ryan Salame, the former CEO of FTX’s Bahamian arm, and Daniel Chapsky, FTX’s former head of data science—could have provided testimony countering the government’s insolvency narrative. Salame has since pleaded guilty to campaign-finance violations and operating an illegal money-transmitting business and was sentenced to seven and a half years in prison in May 2024. Chapsky, who also faced charges, did not testify at trial. A third figure, Nishad Singh, FTX’s former engineering lead who cut a plea deal with prosecutors to avoid jail and testified against Bankman-Fried, was alleged to have changed his testimony “following threats from the government.”

Kaplan noted that Bankman-Fried could have attempted to compel testimony from these individuals but did not, and that the claim of government pressure driving their decisions was “wildly conspiratorial and entirely contradicted by the record.” The judge also emphasized that Bankman-Fried’s conviction followed seven criminal charges related to fraud and money laundering, centered on the transfer of billions of dollars of customer funds from FTX to Alameda Research for high-risk trades that contributed to the exchange’s collapse. Bankman-Fried is currently held at a federal prison in Lompoc, California.

Key takeaways

What was denied: A bid for a new trial based on alleged “new evidence,” with Kaplan ruling the claim baseless and the witnesses not newly discovered.

Who was at the center of the request: Three former FTX executives—Ryan Salame, Daniel Chapsky, and Nishad Singh—who the defense said could counter government assertions about insolvency.

Notable context on the witnesses: Salame pleaded guilty to campaign-finance violations and operating an unlawful money-transmitting business; Singh testified against Bankman-Fried after striking a plea deal; Chapsky did not testify at trial.

Procedural nuance: The motion was filed in February to be heard by a different judge and was pursued without Bankman-Fried’s lawyers, while an appeals court reviewed his conviction and sentence.

What this means for the case: Kaplan casts doubt on the viability of reopening the trial, signaling a high evidentiary bar for similar motions moving forward.

What the ruling clarifies about the insolvency narrative

The heart of Bankman-Fried’s defense rested on whether new testimony from Salame, Chapsky, or Singh could alter the government’s portrayal of FTX’s finances. Kaplan’s assessment makes explicit that simply proposing familiar names as potential witnesses does not constitute “new” evidence, especially when the individuals were known to Bankman-Fried long before the trial and had been considered for testimony previously. The court’s language underscores a careful standard for post-trial relief: new evidence must genuinely change the factual landscape of the case, not simply repackage existing information or reframe arguments after a conviction.

Context within the broader FTX saga

The Bankman-Fried case sits within the larger FTX collapse and the ensuing prosecutions of several executives tied to the exchange’s downfall. The seven charges he faced at trial encompassed fraud and money laundering allegations tied to the alleged improper transfer of customer funds to Alameda Research to execute risky trades. Kaplan’s ruling reaffirms the trajectory of the case—the government’s portrayal of insolvency and the misuse of customer funds stands central to the narrative that secured Bankman-Fried’s conviction and lengthy prison sentence. The status of the various co-defendants, their cooperation agreements, and any subsequent testimony will continue to influence related proceedings and potential appeals.

What’s next for the legal process?

With the new-trial bid rejected, the focus shifts to the appellate process and any further motions that might arise as Bankman-Fried and his defense team navigate potential avenues for relief. While the current ruling narrows the grounds for reopening the trial, appellate considerations often hinge on technical aspects of trial procedure and evidentiary standards, rather than re-litigating the facts. Investors, traders, and industry observers will want to monitor whether the defense pursues subsequent avenues or leverages related cases as part of a broader strategy around the FTX collapse and its regulatory implications.

Readers should watch for updates on the appeals timeline and any additional disclosures from the parties as they position themselves for the next phase of this high-profile financial-crypto crackdown case.

This article was originally published as Judge Denies SBF’s Bid for New Trial in FTX Case on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Paxos Labs has integrated its Amplify platform with Toku to enable employees to earn yield on their stablecoin salaries at the moment of payment. The feature applies to balances held in Toku wallets, allowing users to opt in and earn yield on USDC, USDT and USDG without lockups or withdrawal delays. The rollout covers Toku’s payroll network, which processes more than $1 billion annually for workers in over 100 countries and already integrates with systems such as ADP, Workday, Gusto and UKG.

The update tackles a common constraint of stablecoin payrolls: funds often sit idle between pay cycles. By embedding yield directly into balances, employees can accrue earnings on their salaries without leaving their wallets or engaging with external platforms. Paxos and Toku did not disclose the yield source or the specific rates users can expect.

Toku supplies stablecoin payroll infrastructure via an API that connects to existing enterprise systems, enabling employers to offer crypto-denominated salaries without altering payroll workflows. The new capability operates on Paxos Labs’ Amplify platform, which is designed to let companies plug in services such as yield and borrowing through a single connection.

In this arrangement, Toku remains a stablecoin payroll and employer-of-record platform, while Paxos Labs functions as a financial utility stack for digital assets incubated within Paxos.

Related: MiCA-licensed Banking Circle joins bank stablecoin settlement race in Europe

Key takeaways

Embedded yield in payroll—Paxos Amplify and Toku enable yield on USDC, USDT, and USDG balances directly in employee wallets, with no lockups or off-platform transfers.

Global payroll reach—Toku’s network processes over $1 billion annually for workers in more than 100 countries and connects with major HR platforms such as ADP, Workday, Gusto and UKG.

Opacity on mechanics—Neither the yield generation method nor the rate is disclosed, leaving readers cautious about risk and variability.

Broader payroll adoption trend—The move reflects rising interest in stablecoin payroll, echoed by other players integrating crypto salary rails into existing infrastructure.

Market context—Industry data show growing stablecoin use for income and payments, with ongoing regulatory interest shaping how these solutions scale.

Embedded yield and the rise of stablecoin payroll

Stablecoins have increasingly become a core part of payroll and everyday payments for a segment of the workforce. A recent BVNK-commissioned YouGov survey, conducted across 15 countries, found that 39% of crypto users and prospective users report receiving income in stablecoins, while 27% use them for payments. Respondents on average held about $200 in stablecoins, with higher-income cohorts holding closer to $1,000. Those paid in stablecoins reported that stablecoin income accounts for roughly 35% of their annual earnings, and cited around 40% savings on cross-border transfers compared with traditional remittance channels.

The broader momentum toward crypto-enabled payroll is illustrated by Deel’s February announcement of stablecoin salary payouts in Europe and the UK, with plans to expand to the United States. Deel, which processes roughly $22 billion in annual payroll, is partnering with MoonPay to provide crypto settlement rails that allow employees to receive part or all of their wages in stablecoins directly to non-custodial wallets, while MoonPay handles conversion and on-chain settlement. The move signals how employers are trying to blend traditional payroll workflows with crypto-native settlement options without sacrificing compliance or payroll integrity.

Industry data also point to a growing market for stablecoins. DeFiLlama’s data show the total stablecoin market cap rising to roughly $320 billion, up from about $259 billion in July 2025—the period around which the GENIUS Act was enacted—highlighting the expanding scale of on/off-ramp and on-chain settlement activity that underpins payroll use cases. This backdrop helps explain why more payroll providers and employers are experimenting with on-chain salary rails and embedded yield features as a way to improve cash flow, reduce currency conversion costs, and shorten settlement timelines for workers worldwide.

As this segment evolves, observers note that the regulatory environment will play a crucial role in shaping adoption. The European Union’s MiCA framework, for instance, has begun to influence how banks and payment service providers engage with stablecoins and related settlement capabilities, a topic that has been covered in related industry coverage. The ongoing regulatory dialogue will influence whether features like on-wallet yield become standard components of crypto payroll offerings or remain niche innovations.

For employers and workers alike, the promise of on-demand yield within payroll balances presents a compelling value proposition: earnings that begin compounding immediately, without the friction of moving assets between wallets or custodial platforms. Yet the lack of visibility into yield mechanics invites careful consideration of risk, volatility in ancillary yields, and the need for robust treasury and risk management practices as more companies pilot these solutions.

What comes next could hinge on how payroll platforms balance user experience with prudence—ensuring clarity around yield sources, safeguarding custody, and delivering transparent terms to employees. As the ecosystem matures, more enterprises may follow Toku and Paxos into integrated yield-enabled payroll, potentially redefining how workers across the globe are compensated in a digital-asset world.

Readers should watch for further disclosures from Paxos Labs and Toku about yield structures and rate ranges, as well as updates from Deel and other payroll incumbents expanding stablecoin salary options. Regulator-led clarity and interoperability across payroll systems will likely determine how quickly embedded-yield payroll becomes a mainstream feature rather than a bespoke offering.

This article was originally published as Paxos and Toku Enable Yield on Stablecoin Payroll Balances on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

RedStone, a decentralized oracle provider based in Baar, Switzerland, has unveiled RedStone Settle, a new on-chain settlement layer designed to put tokenized real-world assets (RWAs) to work as collateral in DeFi lending protocols. The move targets a persistent structural hurdle: RWAs such as tokenized funds and bonds often carry redemption windows of 60 to 180 days, a timeline that has historically clashed with the near-instant liquidation mechanics that govern most DeFi lending markets. By introducing an on-chain auction mechanism that activates during liquidation events, RedStone aims to provide immediate liquidity while transferring the delayed redemption risk to liquidity providers who step in to buy positions.

In RedStone’s framing, Settle lets liquidity providers purchase positions during a liquidation, supplying on-chain liquidity to the lending protocol and accepting the underlying asset’s longer redemption horizon. If successful, the approach could convert a substantial swath of idle tokenized RWAs—RedStone cites “more than $30 billion” currently sitting on the sidelines in DeFi—into usable collateral, potentially enabling more efficient borrowing against yield-generating positions.

The broader context for this development mirrors the growing but uneven progress of RWAs in crypto markets. Current estimates of tokenized RWAs—excluding stablecoins—hover around the $30 billion mark, led by exposure to U.S. Treasuries and private credit, according to data from RWA.xyz. The figures align with industry observations that a sizable portion of tokenized assets remains underutilized within DeFi, constrained by liquidity frictions and settlement timelines rather than a simple lack of demand.

Key takeaways

RedStone Settle introduces an on-chain auction mechanism triggered by liquidation events to bridge the liquidity gap for tokenized RWAs used as collateral in DeFi lending.

The system envisions liquidity providers stepping in to buy positions, delivering immediate liquidity while bearing the risk of delayed redemption associated with the underlying RWAs.

RedStone claims the approach could unlock more than $30 billion of tokenized RWAs currently idle in DeFi, aligning with broader market estimates for tokenized real-world assets not including stablecoins.

Industry voices caution that tokenization alone does not guarantee liquidity; a Paris Blockchain Week panel highlighted the persistence of liquidity and settlement constraints, underscoring the need for robust mechanisms beyond mere tokenization.

DeFi lending activity continues to rise, with institutional interest and RWAs as collateral contributing to a 72% year-over-year expansion through September, according to Binance Research via a TradingView report.

How RedStone Settle works and why it matters

At the core, RedStone Settle is a specialized settlement layer intended to unlock collateral potential for RWAs within DeFi lending protocols. When a loan or position is tested against risk parameters and approaches liquidation, an on-chain auction is triggered. Liquidity providers can participate by purchasing the position, thereby supplying immediate liquidity to the protocol. In exchange, these providers assume the delayed redemption risk tied to the underlying RWA asset. By internalizing this risk and aligning it with a structured on-chain auction, RedStone aims to minimize abrupt liquidations while preserving the utility of RWAs as collateral.

RedStone’s framework is designed to address the fundamental mismatch between the fast-moving cadence of DeFi risk management and the slower, real-world settlement cycles that characterize tokenized assets. If liquidity providers can efficiently bridge the gap during liquidations, borrowing against RWAs could become more practical for lenders and more attractive for borrowers seeking to leverage yield-generating positions. The emphasis on an on-chain auction mechanism also offers a transparent, auditable pathway for price discovery and settlement, which could help reduce counterparty risk during stressed market conditions.

Industry observers note that even with tokenized assets, the liquidity story is not uniformly compelling. The emergence of Settle comes as part of a broader debate about the liquidity implications of tokenization. A Paris Blockchain Week panel, which Cointelegraph covered, featured voices arguing that simply tokenizing illiquid assets does not automatically render them tradable or readily usable in financial markets. The panel underscored ongoing liquidity and settlement constraints that persist despite on-chain representations of real-world assets.

“I think there’s still this idea that tokenizing something illiquid will somehow magically make it a liquid asset, which is just not true,” said Oya Celiktemur of Ondo Finance during a Paris Blockchain Week panel hosted by Cointelegraph.

These observations help frame RedStone Settle as a targeted attempt to resolve a specific friction point—improving liquidity access during forced liquidations—rather than claiming tokenization alone will solve all liquidity challenges. The approach could complement existing collateral frameworks by creating a credible on-chain pathway for RWAs to participate in DeFi lending markets even when redemption cycles lag behind lenders’ risk-management timelines.

RWA liquidity, market size, and adoption dynamics

RedStone’s projections sit within a landscape where tokenized RWAs are steadily growing in visibility and ambition, even as liquidity remains uneven. Data from RWA.xyz indicates a market worth north of $30 billion when stablecoins are excluded, with the largest segments concentrated in U.S. Treasury exposure and private credit. These assets reflect a broad appetite among traditional issuers and investors to tokenize real-world cash flows, while DeFi protocols seek durable, yield-generating collateral beyond crypto-native instruments.

Industry commentary during Paris Blockchain Week adds another dimension to the debate. Tokenization, while enabling on-chain representation of RWAs, does not automatically unlock tradability or deep liquidity across markets. Liquidity providers, market makers, and risk underwriters must still navigate custody, settlement, and regulatory considerations that govern real-world assets, even when they are tokenized. The discourse highlights why new settlement mechanisms—like Settle—are essential to translating tokenization into practical DeFi utility.

Meanwhile, DeFi lending remains buoyant, with research from Binance indicating continued growth driven in part by institutional interest in RWAs and stablecoins. The research shows a 72% year-over-year expansion in DeFi lending through September, underscoring the sector’s ongoing appetite for diversified collateral and onboarding of traditional finance players. This backdrop helps explain why RedStone is pursuing a settlement layer that could unlock additional liquidity channels for tokenized RWAs without waiting on gradual redemption schedules.

Beyond Settle, the broader ecosystem has seen related tokenization activity that signals growing experimentation with RWAs in crypto markets. For example, Flow Capital has publicly discussed plans to tokenize a $150 million private credit fund via DigiFT, illustrating how market participants are combining tokenization with institutional-grade asset classes to broaden DeFi’s collateral base. Such developments, while at different stages, collectively point to a trend toward more sophisticated ways of incorporating real-world yield into crypto lending and liquidity provision.

What changes for users, lenders, and builders

If RedStone Settle reaches meaningful adoption, several implications could emerge across the ecosystem. For lenders, the ability to collateralize tokenized RWAs more effectively could expand the universe of eligible collateral, potentially enabling larger borrowing capacity or more favorable terms for yield-oriented strategies. For liquidity providers, Settle offers a structured mechanism to deploy capital in exchange for exposure to the delayed redemption risk associated with RWAs, potentially creating new yield opportunities tied to safer liquidation outcomes.

For builders and DeFi protocols, Settle could offer a practical blueprint for integrating RWAs into lending markets without forcing a wholesale redesign of risk models. However, the approach also introduces new layers of risk—primarily around price discovery, settlement finality, custody, and regulatory compliance—that projects must model and monitor. The on-chain auction dynamic, while transparent, requires robust governance, clear settlement rules, and resilient oracle and data feeds to withstand market stress.

Regulatory and operational considerations will likely shape how quickly Settle scales. Tokenized RWAs sit at the intersection of traditional finance, asset custody, and crypto markets, where custody solutions, KYC/AML requirements, and cross-border settlement protocols often influence deployment timelines. As more institutions explore tokenized collateral, the market will be watching how on-chain settlement protocols align with existing compliance frameworks and risk management standards.

What readers should watch next

RedStone Settle represents a notable attempt to translate tokenized RWAs into practical, tradable collateral within DeFi. The coming months will reveal whether the on-chain auction mechanism can deliver the claimed liquidity lift without introducing new forms of risk or friction. Investors and developers should monitor how Settle interacts with existing lending protocols, the quality and diversity of RWAs brought into the frame, and the regulatory guidance that could shape custody, settlement, and disclosure requirements for tokenized assets used as collateral.

In the near term, the market will also weigh broader adoption signals for tokenized RWAs, including continued growth in DeFi lending, the volume and velocity of RWAs tokenized through various platforms, and the willingness of liquidity providers to engage with RWAs that carry longer redemption timelines. As industry research and independent coverage continue to dissect tokenization’s real liquidity impact, RedStone Settle adds a concrete mechanism to bridge the gap between on-chain execution and off-chain asset settlement—an issue that remains central to unlocking RWAs’ full potential in DeFi.

As the ecosystem tests Settle’s value proposition, market participants will closely observe the balance between immediate liquidity during liquidations and the risk transfer to providers. The outcome could influence future designs for DeFi primitives seeking to incorporate real-world yields, shaping the trajectory of RWAs in crypto markets in the months ahead.

Further reading and related coverage include Flow Capital’s tokenization plan for a private credit fund via DigiFT, as reported by Cointelegraph, and analyses of liquidity dynamics around tokenized assets presented at Paris Blockchain Week. For background on market sizing, RWA.xyz provides ongoing data on the scale and composition of tokenized RWAs beyond stablecoins.

This article was originally published as RedStone Unveils Settlement Layer to Bridge RWA Liquidity for DeFi on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Solana is advancing a post-quantum security plan as it selects Falcon to secure the network against future threats. Independent developer teams align on Falcon for speed and compact design, and there are no immediate changes as the rollout proceeds in phases to ensure a smooth transition.

Solana Aligns on Falcon for Quantum Security

Solana relies on high transaction throughput, so any upgrade must remain efficient.

Developers selected Falcon because it offers compact signatures and strong security.

This combination helps preserve network speed while improving future resilience.

Both Anza and Firedancer teams studied multiple post-quantum options. However, they reached the same outcome without coordination.

This consistency signals strong technical validation behind Falcon’s selection.

Falcon also holds recognition from the National Institute of Standards and Technology as a post-quantum candidate. That status adds credibility to its long-term viability. It also aligns Solana with broader industry research.

Compact Signatures Support High Throughput

Falcon produces signatures around 690 bytes, which remain significantly smaller than alternatives.

Larger schemes like Dilithium generate signatures several kilobytes in size.

Smaller data sizes help maintain faster processing speeds.

Solana processes thousands of transactions per second, so efficiency remains critical.

Developers confirmed that Falcon supports this demand without major trade-offs.

Early tests suggest improved performance compared to current cryptographic methods.

Optimized implementations may increase network speed further. Internal testing indicates potential gains of up to three times. These results strengthen the case for Falcon integration.

Phased Roadmap Limits Immediate Disruption

The foundation confirmed that no urgent changes affect users today. Existing wallets and transactions continue operating under current cryptographic standards. This ensures stability while development progresses.

Future phases will introduce Falcon gradually across the ecosystem. New wallets may adopt the system first if risks increase. Older wallets will transition later through a structured migration plan.

Other ecosystem projects explore additional quantum-resistant tools. Blueshift’s Winternitz Vault represents one such effort. These parallel developments show broader preparation across the network.

Solana’s strategy reflects a long-term focus on security and performance. The foundation recognizes that quantum threats remain distant but possible. Early preparation allows controlled testing and reduces future risk.

This article was originally published as Solana Foundation Bets on the Future: Falcon Upgrade Aims to Outrun Quantum Threats on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Canaan Inc. has landed another order from Tether to supply custom Bitcoin mining hardware, extending a collaboration that began with an experimental R&D phase focused on new system designs for large-scale operations. The latest deal centers on high-density hash board modules designed for immersion-cooled mining setups, with deployment planned at a Tether-linked facility in South America.

The arrangement positions Canaan as a preferred hardware partner for major mining operators like Tether, building on a 2025 research-and-development partnership with ACME Swisstech that produced a proof-of-concept platform aimed at boosting efficiency and scalability in mining operations. The open question moving forward is whether the new design will unlock meaningful gains in energy use and throughput at scale.

Beyond hardware, Tether is moving toward deeper integration of hardware and software within its mining operations. The issuer of the USDT stablecoin has been developing its own control boards and management software, signaling a broader push to coordinate mining infrastructure with centralized software systems. The latest agreement includes an option for additional purchases, giving Tether the flexibility to scale up its data-center-style mining footprint if the new design performs as hoped.

Canaan, a Singapore-based technology company focused on ASIC microprocessors and Bitcoin mining hardware, has disclosed that it currently holds 1,808 BTC on its balance sheet, valued at roughly $137 million. This represents its highest level of retained Bitcoin to date, according to the firm’s disclosures tracked by BitcoinTreasuries.NET.

Key takeaways

The new order extends Canaan’s collaboration with Tether, supplying high-density, immersion-cooled hash boards for a South American facility and signaling deeper integration of cooling and processing technology.

The arrangement includes an option for additional purchases, offering Tether a clear path to scale its mining operations if the tested designs prove effective.

Tether’s move to develop control boards and software in-house points to a broader strategy of hardware-software cohesion within its mining stack, potentially reducing reliance on third-party management tools.

Industry-wide demand pressures have spurred miners to diversify into data-center services and AI workloads, as companies seek new revenue streams beyond traditional BTC mining margins.

Market response to related developments shows mixed sentiment, with Canaan’s stock and related mining ETFs reacting to broader sector dynamics and Bitcoin mining profitability expectations.

Strategic expansion: Canaan and Tether deepen collaboration

The latest contract underlines a strategic pivot for Canaan from standard ASIC manufacturing toward bespoke, turnkey hardware solutions for large-scale operators. By supplying immersion-cooled, high-density hash boards, the company aims to support more compact, efficient mining deployments in facilities designed to handle intensive heat and energy demands. This aligns with a growing industry preference for data-center-grade infrastructure that can host thousands of mining rigs under optimized cooling regimes.

The partnership builds on Canaan’s earlier R&D engagement with ACME Swisstech, which produced a proof-of-concept platform intended to improve mining efficiency and scalability. While the specifics of the platform remain largely private, industry observers see it as part of a broader trend toward engineering custom, enterprise-grade mining architectures rather than off-the-shelf solutions.

Tether’s broader mining strategy appears to be moving toward a tighter hardware-software loop. By developing its own control boards and management software, the stablecoin issuer signals an ambition to coordinate the entire lifecycle of mining operations—from hardware deployment to real-time performance monitoring and workload optimization. The objective is to reduce operational friction and create a more predictable, scalable mining environment as demand grows in certain regional markets.

Hardware-software convergence and the AI-infrastructure pivot

Coinciding with the Canaan deal, Tether announced the launch of an open-source mining framework designed to unify Bitcoin mining infrastructure under a single operational system. The framework aims to streamline management across disparate rigs and facilities, potentially lowering maintenance costs and shortening deployment cycles for large operators. The move follows industry-wide notices that several miners are expanding into data-center capabilities and AI-oriented workloads to diversify revenue and improve utilization of their physical assets.

The shift toward AI-enabled infrastructure is not unique to Tether. Major miners and adjacent players have been diversifying into AI-focused data centers and cloud capabilities as margins tighten within traditional mining. Industry observers note that this transition is driven by the high energy and capital intensity of Bitcoin mining, pushing firms to seek revenue streams that can better absorb cyclical demand fluctuations and rising energy costs.

Analysts have highlighted the broader risk-reward profile of this pivot. For instance, Bernstein has suggested that certain mining operators could recalibrate their portfolios toward AI cloud infrastructure, potentially reallocating capital away from pure mining activities if returns from existing mining operations prove insufficient to sustain growth. While this assessment focuses on specific players, the underlying takeaway is the sector-wide re-evaluation of where profitable growth lies as miners seek to weather a challenging operating environment.

From a market perspective, the news cycle surrounding Canaan and Tether has contributed to modest trading activity in related equities and funds. Canaan’s Nasdaq-listed shares traded down slightly in the mid-day session, while the CoinShares Bitcoin Mining ETF (WGMI) softened, reflecting a broader sensitivity to sector-wide profitability expectations and the evolving mix of mining assets within investor portfolios. Within WGMI’s holdings, CAN sits at a subdued weighting, underscoring the ETF’s diversified exposure to the mining sector rather than a single stock narrative.

BitcoinTreasuries.NET continues to track Canaan’s bitcoin holdings, which have climbed to their highest reported level. This reserve position is often cited by investors as a barometer of a mining-focused company’s willingness to retain capital in Bitcoin amid price volatility and sector headwinds. The current stance underscores a broader question for stakeholders: will Canaan’s strengthened hardware partnership with Tether translate into sustained cash flow and a longer-term upside for the stock as mining demand cycles evolve?

Industry backdrop: miners explore new revenue streams amid volatility

The expansion of mining infrastructure into data centers and AI workloads reflects a practical response to revenue pressures facing many miners. As mining rewards and margins compress, operators are looking to monetize energy-intensive assets through adjacent services and alternative compute workloads. The strategic emphasis on immersion cooling and high-density hardware is particularly relevant given the heat and energy dynamics associated with large-scale Bitcoin mining operations.

In parallel, several other players—ranging from established miners to new entrants—have signaled a similar appetite for diversification. The goal is not only to sustain profitability but also to position themselves as multi-service providers capable of supporting a broader compute ecosystem. Such positioning could prove advantageous if industry demand for AI-capable data-center capacity continues to grow, even as the price of BTC experiences volatility.

As this trend unfolds, observers will be watching indicators such as project execution milestones, unit-level efficiency gains from immersion-cooled designs, and the degree to which in-house hardware-software ecosystems translate into measurable improvements in uptime and operational costs. The outcome will influence who leads in the next phase of commercial mining infrastructure and whether AI-centric compute becomes a core pillar of long-term strategy for major miners.

With Tether continuing to push into hardware-software integration and Canaan expanding its custom, enterprise-grade offerings, the market will likely reassess the supply chain readiness for advanced mining deployments. The timing of any scale-up or additional orders will be telling, particularly as regional energy policies, tax considerations, and corporate strategies shape the feasibility and speed of such deployments.

Looking ahead, readers should monitor updates on Tether’s open-source framework implementation, any further disclosures about the performance of the new immersion-cooled modules, and the potential expansion of the partnership with ACME Swisstech or similar collaborators. These developments will help determine whether the convergence of hardware and software in mining signals a durable shift or a temporary alignment driven by current market dynamics.

This article was originally published as Tether Orders Canaan Miners as Industry Migrates to Modular Mining on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

The press release reports that the United Arab Emirates will exit OPEC and OPEC+ on May 1, 2026, ending nearly six decades of membership. It frames the move as a strategic shift toward greater production flexibility as the UAE expands capacity toward 5 million barrels per day and argues that existing quotas may constrain a growing economy. Analysts cited in the release describe potential changes in global oil dynamics, including supply expectations and market volatility, while noting regional security tensions and price pressures as contextual backdrops. The note sets the stage for how this departure could reshape producer coordination and market sentiment.

Key points

Exit takes effect May 1, 2026, ending UAE’s six-decade OPEC membership.

UAE capacity expansion toward 5 million barrels per day.

Departure could alter OPEC+ unity and producer discipline.

Context includes regional security tensions and energy price dynamics impacting markets.

Why it matters

The UAE’s exit reshapes influence within oil markets by reducing OPEC+ unity and granting Abu Dhabi more latitude to monetize its expanding capacity. The move could widen supply options and inject greater uncertainty into pricing, affecting traders, policymakers, and energy markets as market participants reassess spare capacity, regional risk, and the pace of production growth.

What to watch

Monitor Brent price and market volatility around the May 1 transition.

Watch any guidance from UAE authorities on production policies post-exit.

Observe reactions and shifts in alignment among other OPEC+ members.

Disclosure: The content below is a press release provided by the company or its PR representative. It is published for informational purposes.

UAE Exit from OPEC Signals Shift in Global Oil Dynamics

Abu Dhabi, United Arab Emirates – April 28, 2026: The United Arab Emirates’ decision to exit OPEC and OPEC+ marks a significant turning point in global oil markets, according to eToro Market Analyst Sam North, highlighting shifting geopolitical dynamics and evolving supply expectations.

The UAE announced it will leave the producer alliance effective May 1, 2026, ending nearly six decades of membership. The move reflects a broader strategic shift as the country seeks greater flexibility over its production policy amid rising capacity and changing market conditions.

Sam North Market Analyst At Etoro

Commenting on the development, Sam North, Market Analyst at eToro, said: “The UAE’s decision to leave OPEC and OPEC+ from May 1 ends nearly six decades inside the oil producers’ club and marks a serious shift in the geopolitics of crude.

For markets, this is about more than one country wanting to pump more oil. The UAE has spent heavily to lift production capacity toward 5 million barrels per day, and OPEC+ quotas had increasingly looked like it was stifling a growing economy. Leaving gives Abu Dhabi more room to monetise those investments.

The timing also matters. This comes against a backdrop of regional security frustration, tensions around Iran and the Strait of Hormuz, and a sense that consumers are once again being squeezed by high energy costs and depleted strategic reserves.

The immediate dip in Brent showed the market’s first instinct: more UAE barrels could mean more supply and lower prices. But the rebound also told the other half of the story. Extra capacity does not instantly become risk-free supply when regional bottlenecks and security threats remain front and centre.

For OPEC+, this is a blow to unity and to Saudi Arabia’s ability to marshal producer discipline. It does not mean a price war starts tomorrow, but it raises the risk that one emerges if others decide to defend market share. In trading terms, this adds a new volatility premium: more potential supply, less cartel discipline, and a Gulf energy map that suddenly looks a lot less predictable.”

The announcement comes at a time of heightened uncertainty in global energy markets, with geopolitical tensions, supply chain constraints, and demand recovery trends all contributing to price volatility. The UAE’s exit is expected to reshape market expectations around supply flexibility and producer coordination.

Media Contact:
PR@etoro.com

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This article was originally published as UAE Exits OPEC and OPEC+; Signals Shift in Global Oil Dynamics on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Galaxy Digital has reported a first-quarter 2026 net loss of $216 million, with earnings per diluted share of $0.49 loss, narrowing versus Q1 2025. The firm’s results come as it continues tilting away from a crypto-market-driven model toward a data-center and AI-focused growth strategy anchored by its Helios campus in Texas.

For the quarter ended March 31, Galaxy posted gross revenue of $10.2 billion, roughly flat with Q4 2025, but down from $12.9 billion in the year-ago period. The results align with the company’s pivot toward recurring revenue streams while it continues to manage exposure to crypto asset prices.

Looking back at full-year 2025, Galaxy reported a net loss of $241 million on gross revenue of $61.4 billion. The company reiterated that near-term growth will hinge on scaling its data-center operations and monetizing AI workloads through Helios, rather than relying primarily on crypto trading activity.

Management noted that growth in the data-center segment is expected to begin contributing to earnings in the second quarter of 2026, once revenue recognition from the Helios campus in Texas starts to appear in the company’s financials. The Helios project, acquired in December 2022, is being developed into a large-scale data-center campus designed to support high-performance computing and AI workloads.

The quarterly figures underlined Galaxy’s strategic transition—from crypto-market cycles to a diversified model centered on Helios and AI-enabled data-center revenue.

Key takeaways

Q1 2026 net loss: $216 million, with diluted-earnings per share of $0.49 (vs. a $0.86 loss per share in Q1 2025), signaling narrowing losses as the business shifts focus toward non-volatile revenue streams.

Revenue situation: Gross quarterly revenue stands at $10.2 billion, flat versus the prior quarter but lower than the year-ago period, highlighting a move away from asset-price-driven swings toward recurring income.

Crypto-price headwinds: Weaker digital-asset prices weighed on asset valuations, with Galaxy noting a roughly 20% drop in crypto market capitalization during the quarter. Digital Assets contributed $49 million in adjusted gross profit, while the Treasury and corporate segment bore heavy losses (about $167 million in adjusted EBITDA).

Helios ramp and revenue timing: The company said data-center growth should begin contributing to earnings in Q2 2026 as Helios starts recognizing revenue, supported by ongoing Phase I deployments.

Balance sheet and allocation: As of March 31, 2026, Galaxy reported $2.8 billion in equity capital, up 46% year over year. Equity is distributed across digital assets (33%), data centers (28%), and treasury/corporate holdings (39%).

Strategic pivot: from market cycles to infrastructure and AI

The quarter’s results reinforce Galaxy’s deliberate shift from a crypto-market-driven stance toward a more diversified business model anchored by Helios and AI-enabled data-center revenue. Galaxy executives have consistently signaled that the Helios campus—Dallas-area expansion of the Argo Blockchain acquisition into a broad HPC and AI facility—will be a long-term growth engine. In the latest update, management stressed that Helios is not just a hardware deployment but a platform for recurring revenue streams tied to capacity and service agreements with institutional clients and AI workloads.

Delivered milestones at Helios underscore the transition. Galaxy reported the first data hall to CoreWeave, a notable progress marker in Phase I, and reaffirmed that the project remains on budget and on schedule to deliver substantially all 133 megawatts of critical IT load under the Phase I lease by the end of Q2 2026. This implies a ramp in revenue recognition as data-center capacity comes online and tenants begin consuming services.

Analysts and investors watching Galaxy’s path will be focused on how quickly Helios monetizes its capacity, how pricing for high-performance computing and AI workloads evolves, and whether the data-center business can offset volatility from crypto markets. The company’s stated trajectory suggests a longer-term horizon where recurring fees and capacity utilization will provide more predictable cash flows than crypto asset price swings.

Operational clarity: Helios milestones and capacity targets

Galaxy has long framed Helios as the primary growth platform. The Texas campus, which began as a larger-scale data-center initiative anchored in PoE (power and cooling) efficiency and AI compute, has progressed toward a multi-phase deployment. Galaxy’s update indicates progress toward delivering most of the Phase I capacity—133 MW of IT load—by the end of the current quarter, with revenue recognition following as customers begin to deploy workloads.

Constructive progress on Helios matters beyond the topline numbers because it translates into a tangible shift in the business mix. The company has already pointed to the likelihood of Helicots (Helios’ capabilities) supporting AI workloads as a compelling use case for institutional clients seeking scalable compute capacity. If Helios meets its phased targets, the data-center segment could start contributing meaningfully to profitability during 2026, offering more resilience in soft crypto markets than a purely asset-price-driven business model.

As of the end of March 2026, Galaxy’s equity capital stood at roughly $2.8 billion, a 46% year-over-year increase. The capital mix—roughly one-third in digital assets, just under a third in data centers, and the remainder in treasury and corporate holdings—highlights the company’s diversified but still crypto-adjacent balance sheet. The trajectory implies risk has shifted toward infrastructure upside and capital-intensive growth rather than speculative crypto exposure alone.

Implications for investors and the market

Galaxy’s Q1 2026 results illustrate both the challenges and opportunities facing a crypto-adjacent firm trying to pivot into infrastructure-led growth. The weaker crypto price environment clearly depressed asset valuations, contributing to the quarterly loss structure that persists despite stabilizing per-share losses versus a year earlier. Yet the early indicators from Helios—data-center capacity coming online and a clear revenue ramp in the quarters ahead—offer a potential path to steadier, recurring income that could cushion earnings when crypto markets remain volatile.

Investors will be watching several moving parts: the pace at which Helios contributes to quarterly results, the ability to attract and retain long-term data-center tenants, and the management of capital allocation across the firm’s diversified portfolio. The 20% contraction in crypto market capitalization during the quarter underlines the sensitivity of Galaxy’s financials to digital-asset cycles, even as a portion of revenue becomes more deterministic through data-center contracts and AI compute services.

Additionally, the broader market context remains relevant. As Galaxy shifts toward a blended model, any regulatory developments around digital assets, data-center energy costs, or AI compute demand could influence the pace and profitability of Helios’ rollout. Analysts will also scrutinize how the Helios ramp aligns with expectations for the company’s 2026 guidance and whether the anticipated Q2 2026 revenue recognition from Helios translates into meaningful earnings uplift in the back half of the year.

In the short term, Galaxy’s results reinforce a narrative common to many crypto-adjacent operators: price action in digital assets will continue to reverberate through the earnings line, but the growth story is increasingly anchored in infrastructure, capacity utilization, and the monetization of AI workloads. The question for investors is whether Helios can deliver the reliable, scalable revenue streams necessary to offset periods of crypto weakness and drive a more durable earnings trajectory over the next several quarters.

Looking ahead, readers should monitor Helios’ progress toward full Phase I capacity, any updates on tenancy and utilization rates, and the broader demand environment for AI compute services. These factors will likely shape Galaxy Digital’s next earnings cycle and the long-term viability of its transition from a crypto-market focus to an infrastructure-led business model.

This article was originally published as Galaxy Digital Records $216M Q1 Loss Amid Helios Expansion Push on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Live weekday coverage of Bitcoin markets, geopolitics, and frontier technology debuts Summer 2026 from Nashville, airing across six platforms to a projected 58 million annual impressions.

NASHVILLE, TN, April 27, 2026 — Bitcoin Magazine, a global media brand within BTC Inc. (the “Company”), a Nakamoto Inc. (NASDAQ: NAKA) subsidiary, today announced BM TV (Bitcoin Magazine TV), a daily live broadcast network launching Summer 2026. The show will air Monday through Friday from 9:30 to 11:30 AM ET, timed to U.S. market open, delivering rigorous, unsentimental analysis of Bitcoin, global capital markets, macroeconomic currents, geopolitical policy, and frontier technology commentary.

Produced from the Company’s Nashville office and distributed simultaneously across six platforms, including X, YouTube, Facebook, Rumble, BitcoinMagazine.com, and LinkedIn, BM TV targets the Company’s existing 5 million aggregated online audience, which reached over one billion impressions in 2025.

“Bitcoin has moved from the periphery of global finance to its center, and the media infrastructure around it must evolve accordingly,” said Brandon Green, CEO of BTC Inc. “BM TV represents a fundamental expansion of what Bitcoin Magazine is, from the world’s most trusted publication in this space to a full-spectrum media company capable of meeting this moment at scale.”

Built for Bitcoin’s Institutional Inflection

BM TV arrives at a pivotal juncture. More than $102 billion is now held in Bitcoin ETF assets under management, according to Bitbo. The Company estimates that, following the launch of Bitcoin ETFs in 2024 and the subsequent public company adoption of Bitcoin as a balance sheet asset, an expanding cohort of institutional allocators is evaluating Bitcoin as a strategic portfolio position.

The Company believes that demand for credible, broadcast-quality analysis on Bitcoin has emerged as a result of this new class of investors. Simultaneously, artificial intelligence is commoditizing text-based media. BM TV is purpose-built for the post-AI landscape: its experiential value is designed to compound trust through production quality, editorial personality, and the irreplicable spontaneity of real-time analysis.

“The Bitcoiner is changing. In the post-Covid era of monetary stimulus, a largely retail-oriented cohort joined the ranks of Bitcoin investors. Now, with the launch of Bitcoin ETFs, institutional adoption, and serious consideration from world governments, it’s more important than ever to meet the Bitcoiner where they are,” said Spencer Nichols, Executive Producer and Director of BM TV. “We look forward to providing nuanced coverage of Bitcoin in the context of global events, in addition to preserving the ethos and legacy of Bitcoin’s cypherpunk roots that Bitcoin Magazine has supported since its creation in 2012.”

A Show for Modern Audiences

Each two-hour episode will feature multi-camera, broadcast-grade production with an anchor-and-analyst desk, live data overlays including tickers, charts, prediction markets, ETF flow trackers, and two remote guests drawn from the leading voices in finance, technology, energy, and policy. Coverage will span four interlocking verticals: Bitcoin, global markets, macro and political commentary, and energy, AI, and frontier technology.

“Every consequential shift in capital markets has been accompanied by the rise of a defining media voice. BM TV is being built for the allocator, the builder, and the policymaker who understand that Bitcoin is no longer optional, it’s inevitable,” said Mark Mason, Head of Media at Bitcoin Magazine. “We have the audience, the credibility, and the distribution. This is the broadcast the market has been waiting for.”

The show aims to explain Bitcoin market activity against the backdrop of global events and themes, treating Bitcoin as a monetary constant embedded in financial markets, energy systems, semiconductor supply chains, AI compute economics, government regulation, and internet culture.

The Company believes that the influx of Bitcoin-backed securities investors has expanded the audience for Bitcoin-centric news and media.

Distribution

BM TV will broadcast across six simultaneous platforms, leveraging Bitcoin Magazine’s distribution infrastructure. The show aims to produce approximately 230 episodes per year, with each broadcast generating derivative content across short-form clips, newsletter features, and BitcoinMagazine.com editorial analysis.

Bitcoin Magazine has established itself as the preeminent livestream broadcaster in the Bitcoin and crypto ecosystem, with a proven track record of producing high-impact live events such as the Bitcoin Conference, Halving coverage, the 2024 Inauguration show, and numerous bespoke livestreams.

Be the First to Know When BM TV Launches

With BM TV expected to launch Summer 2026, the Company has created a website where it intends to share updates and behind-the-scenes previews with early subscribers.

About BTC Inc.

BTC Inc. is the world’s leading Bitcoin media enterprise, operating Bitcoin Magazine, the Bitcoin Conference, and Bitcoin for Corporations. Through its media, events, and educational platforms, BTC Inc. delivers trusted news, research, and experiences that advance Bitcoin adoption among individuals, institutions, and enterprises worldwide.

BTC Inc. is a subsidiary of Nakamoto Inc. (NASDAQ: NAKA), a publicly held Bitcoin company that owns and operates a global portfolio of Bitcoin-native enterprises.

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements, as defined under U.S. federal securities laws. Forward-looking statements can be identified by the use of words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “intend,” “could,” “would,” “may,” “plan,” “will,” “seek,” “target,” or similar expressions.

Forward-looking statements in this press release include, but are not limited to, statements regarding BTC Inc.’s business plans and strategies, projected audience size, reach, impressions, expected launch dates, production schedules, and anticipated growth of Bitcoin-related media, events, and services.

These forward-looking statements are inherently uncertain and involve numerous assumptions and risks, including Bitcoin price volatility, changes in audience engagement, platform dependency, regulatory developments, competition, and general economic conditions.

Additional details can be found in Nakamoto Inc.’s filings available at www.nakamoto.com and www.sec.gov.

Because Nakamoto Inc. (NASDAQ: NAKA) is the parent company of BTC Inc., investors should be aware that the performance and risks of BTC Inc.’s operations may affect Nakamoto Inc.’s overall results.

This article was originally published as Bitcoin Magazine Launches BM TV for Institutional Bitcoin Markets on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Across XRP, WeFi, and Hyperliquid, this briefing frames a market expectation: the emphasis is shifting from hype to real use cases and scalable infrastructure. The press release casts XRP, WeFi, and Hyperliquid as three distinct pillars—cross-border settlements, on-chain banking, and decentralized derivatives—whose fundamentals could shape adoption, liquidity, and capital flow in 2026 even as prices consolidate. The material aims to help readers, from users and builders to investors, understand why these tokens are highlighted together and what signals to watch as regulation, product rollout, and real-world usage evolve. This intro previews the themes and what to monitor next.

Key points

XRP is presented as infrastructure for fast, low-cost international settlements, with a 2025 regulatory settlement and the launch of spot XRP ETFs that may attract institutional capital.

WeFi merges on-chain accounts with a banking-like UX, has grown rapidly (800% since last year) with 150,000+ users across 80+ countries, and is moving from BNB Smart Chain to its own WeChain.

Hyperliquid is described as a dedicated infrastructure layer for perpetual futures, handling large volume and revenue (about $2.95 trillion in annual volume and $747 million in revenue) and focusing on liquidity rather than directional bets.

Institutional interest and ETF filings are noted as a potential bridge to on-chain derivatives (Bitwise updating its S-1 for an ETF, with Grayscale, 21Shares, and VanEck in the queue).

Why it matters

Taken together, XRP, WeFi, and Hyperliquid illustrate how on-chain systems with real products and growing user bases could shape 2026 activity. The emphasis on infrastructure over hype suggests liquidity and adoption may be driven by actual usage, settlement efficiency, and derivatives trading capabilities, rather than headlines. For readers, developers, and investors, the key takeaway is to watch adoption signals, regulatory developments, and the pace at which traditional capital begins to engage with on-chain infrastructure.

What to watch

Regulatory developments and ETF inflows for XRP (e.g., spot XRP ETFs) and how they affect institutional participation.

Progress of WeFi adoption (80+ countries, 150k users) and the move to WeChain; potential shifts in user experience.

Hyperliquid’s liquidity growth and the status of ETF filings by major firms (Bitwise, Grayscale, 21Shares, VanEck) for on-chain derivatives.

Disclosure: The content below is a press release provided by the company or its PR representative. It is published for informational purposes.

XRP, WFI & HYPE: The Trio That Could Surprise the Market in 2026

The crypto market is entering 2026 after a series of sharp fluctuations, reduced risk appetite, and an increasingly clear separation between assets with real products and tokens that are mainly sustained by speculative demand. Despite this, most altcoins are still trading roughly 40–50% below their local highs. Historically, it is precisely these phases that create the most interesting opportunities: the market gradually shifts toward infrastructure, payments, and practical on-chain utility.

In this context, I would highlight three tokens that could potentially not only recover their losses but also break through previous peaks within the current cycle: Ripple $XRP, WeFi $WFI, and Hyperliquid $HYPE. These represent three different sectors – cross-border settlements, on-chain banking, and decentralized derivatives trading – but they share one key factor: their fundamental models continue to strengthen even during periods of price consolidation.

The Post-Overheat Market: Focus Shifting to Fundamentals

There is a recurring pattern that repeats cycle after cycle: the greatest upside potential forms not during moments of euphoria, but during periods of market fatigue, when retail interest fades. The current picture looks exactly like that – most altcoins are correcting from their highs, liquidity is becoming more selective, and capital is moving more cautiously.

At the same time, institutional capital behaves differently: without loud announcements or FOMO, it gradually builds positions in segments where there is a clear product economy and long-term demand. The key difference between this cycle and previous ones lies in the quality of assets attracting attention.

2021 was about hype, memes, and retail speculation.

2024–2025 is about institutional entry through Bitcoin ETFs.

And 2026 increasingly looks like a phase of selective growth, where the winners are not the loudest projects but the most functional ones.

At the center of attention are protocols with real products, real users, and real cash flows.

Is XRP Still Undervalued? The Institutional Adoption Case Nobody Prices In Yet

XRP is currently trading around ~$1.42 – on the surface it looks weak, but the picture is more complex. The SEC lawsuit was effectively closed in 2025 through a financial settlement, and the launch of spot XRP ETFs in November has already brought in over $1B in net inflows. This is not just a “legal win” – it opens the door for institutional capital that was previously blocked by regulatory uncertainty.

Fundamentally, XRP is not about “digital gold.” It is an infrastructure asset for fast and low-cost international settlements. Forecasts for 2026 are mostly in the $2.5–$5 range, with average expectations around $3.5–$4. Some models still allow more aggressive targets up to ~$5, but those assume a high level of adoption.

Trading View Source: XRP/USDT Chart – Coinbase

The key driver is simple: whether banks and payment providers will actually start scaling Ripple’s infrastructure. If they do, current levels could look like an early entry phase.

WFI at Scale: Where Utility Starts to Price in Real Adoption

WeFi (WFI) looks like a project operating in a different phase of the cycle compared to most familiar DeFi tokens. And this is the key point: over 800% since the start of last year, more than 150,000 users, and an ATH of $2.75 after consolidating around $2.40 at the end of November – this is no longer an early-stage “pitch,” but rather a sign of established demand. But what matters even more is what’s happening under the hood: an ecosystem that is already starting to scale on its own. According to analysis by TradingView technical analyst CryptoPatel, within his scenario, a potential target level could be around $100.

Trading View Source: WFI/USDT Chart – BingX

The core idea behind WeFi is fairly pragmatic: to merge on-chain accounts with a banking-like UX, where crypto balances can be spent directly via a card – without bridges, manual swaps, or extra steps. The transition from BNB Smart Chain to its own WeChain only reinforces this logic. In such an architecture, WFI effectively becomes the native “fuel” of the system – covering fees, staking, liquidity, and application activity. This starts to look more like an infrastructure layer than a traditional utility token.

At this stage, the market is pricing the project relatively cautiously: a market cap slightly above $200M with a fixed supply of 1 billion tokens still leaves room for revaluation. But the main signal here isn’t the chart – it’s adoption: rapid user growth and real product usage across 80+ countries. And that raises the question – are we looking at another short growth cycle, or at the early phase of a “banking Ethereum effect” that is only just beginning to unfold?

Why Hyperliquid Is No Longer “Just Another DEX”

Hyperliquid no longer looks like just another DEX from previous market cycles but rather as a distinct infrastructure layer designed from the ground up for perpetual futures and high-volume trading. It is not a fork or an attempt to “repackage” an old AMM model – instead, it resembles market infrastructure that has become a concentration hub for derivatives activity. Against this backdrop, the numbers are striking: ~$2.95 trillion in annual volume, ~$747 million in revenue, all within a segment where derivatives already account for roughly 76% of crypto trading. The logic is simple – the platform doesn’t impose a direction on the market; it monetizes the intensity of movement itself.

Trading View Source: HYPE/USDT Chart

At this stage, institutional interest looks less like speculation and more like a natural continuation of the trend. Bitwise Asset Management has already updated its S-1 for an ETF, with Grayscale Investments, 21Shares, and VanEck also in the queue, effectively creating a potential bridge between traditional capital and on-chain derivatives. In such a setup, even price scenarios like Arthur Hayes’ $150 stop looking like hype-driven speculation – they increasingly depend purely on the scale of liquidity inflows and the speed of their integration into the market.

At the end

If this cycle is defined by anything, it’s not broad upside across the board, but a narrowing of attention toward protocols that actually solve distribution, settlement, or trading efficiency at scale. In that sense, XRP, WeFi, and Hyperliquid are less “bets on price” and more different expressions of the same trend: infrastructure starting to matter more than narratives. The real question for 2026 is not which assets can pump, but which ones can justify staying relevant once liquidity stops forgiving everything else.

This article was originally published as XRP, WFI & HYPE: 3 Cryptos Set to Shock Markets in 2026 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Startale Group has tapped Sunnyside Labs’ Privacy Boost as the official privacy partner for its Startale App, which is built for Soneium, a Sony-connected blockchain network. The integration will introduce self-custodial private transfer features to the app, including shielded balances, private peer-to-peer transfers and privacy-enabled payment flows on the Soneium ecosystem. The move signals a broader push among consumer-facing crypto apps to give users more control over on-chain visibility while maintaining regulatory compliance for operators.

The Privacy Boost rollout centers on what Sunnyside Labs calls Audit View—a selective-audit capability that keeps transaction details hidden from the public while enabling authorized service operators to review them for compliance purposes. Taem Park, co-founder and CEO of Sunnyside Labs, described the approach as a middle ground between full privacy and complete transparency.

“Selective auditability means transaction details remain hidden from the public, while authorized operators can review them through a feature called Audit View,” Park told Cointelegraph. “This means AML and regulatory obligations can be met without requiring all activity to be publicly transparent. This is a fundamentally different architecture from privacy tools that obscure transactions from everyone, including the operator.”

The arrangement raises a central question about data control: who ultimately governs access to private transaction data? Privacy Boost is designed to shield transaction data from the general public, but its Audit View framework preserves operator-level visibility for compliance checks. That creates a dual dependency—on cryptographic protections for users and on Sunnyside Labs’ governance and controls over when and how shielded records can be accessed by trusted parties.

Key takeaways

Startale Group integrates Sunnyside Labs’ Privacy Boost into the Startale App to enable shielded, self-custodial private transfers on the Soneium network.

The solution adds privacy features such as shielded balances and private P2P transfers, paired with privacy-enabled payment flows for a consumer-facing experience.

Audit View introduces selective disclosure: transaction details remain hidden publicly, but authorized operators can access records for AML/compliance checks.

The design embodies an ongoing privacy–compliance tradeoff in crypto, aligning with industry debates about how much data should be visible to regulators and service providers.

Industry readers should watch for how similar architectures balance user privacy with oversight, especially in the context of hybrid models cited by analysts as potentially the most workable path forward.

Selective disclosure and the privacy architecture debate

Privacy Boost’s approach fits into a broader spectrum of selective-disclosure models used across privacy-focused networks. For example, Zcash employs zero-knowledge proofs and supports selective disclosure through viewing keys, allowing certain data to be revealed to authorized parties. Secret Network relies on a comparable concept—viewing keys—for controlled access to private data tied to smart contracts. These mechanisms illustrate a long-standing tension: how to preserve user privacy while enabling legitimate oversight.

Analysts have long debated the practicality of selective disclosure. A February report from TRM Labs argued that “transaction view keys provide strong privacy but weak compliance utility,” particularly for high-value transfers, rapid fund movements, or systemic monitoring. In that light, Privacy Boost’s Audit View model represents a distinct path: keep privacy by default, but grant designated operators the ability to inspect private records when legally warranted. The divergence highlights a core industry question: is privacy best served by cryptographic concealment alone, or by a carefully tuned access regime governed by policy and governance controls?

TRM Labs has also observed that no single privacy regime fully satisfies all stakeholders. Its assessment points toward hybrid approaches that blend visibility, access controls and sensible limits on private-asset conversions as potentially the most workable path for regulated consumer apps. Startale’s collaboration with Privacy Boost sits squarely in that middle ground, attempting to reconcile user privacy with the practical needs of operators and regulators.

Implications for the Sony-linked Soneium ecosystem and wider market

By embedding a privacy layer into a consumer-oriented app linked to a Sony-backed network, Startale aims to demonstrate that privacy features can coexist with compliance and user trust. The approach could influence other enterprises contemplating privacy-enabled workflows within regulated environments. If successful, it may encourage more crypto builders to pursue consumer-ready privacy capabilities that do not forsake oversight—an important distinction as regulators increasingly scrutinize on-chain activity and as mainstream users demand clearer controls over their data.

From a market perspective, the collaboration underscores a growing appetite among brands and infrastructure builders to partner with specialized privacy technology providers. The Sony connection through Soneium adds a high-profile signal that corporate brands may be willing to explore privacy-preserving options for on-chain activity, potentially expanding adoption in areas such as payments, asset transfers and cross-border transactions where privacy and compliance must both be addressed.

Industry observers will be watching how Startale implements Audit View in real-world use cases, how users respond to the privacy controls, and how regulators respond to a model that combines cryptographic privacy with operator-access safeguards. The outcome could shape the design space for consumer crypto apps seeking to balance user control with accountability in a jurisdictionally complex landscape.

For readers tracking the evolution of privacy tech in crypto, this development adds a notable data point: a major consumer-facing layer built atop a Sony-linked network that embraces selective disclosure as a default design principle, rather than an afterthought. The next period will reveal how robust the user experience is, how transparent governance around data access remains, and whether other platform providers adopt similar architectures to bridge privacy with compliance.

Looking ahead, analysts will want to monitor any regulatory clarifications that emerge around data access and auditability in privacy-enabled networks, as well as user feedback on the balance between confidentiality and oversight. If Startale and Privacy Boost can demonstrate practical privacy without undermining compliance—or erode trust by limiting data control—the model could become a template for a new class of consumer crypto apps that prioritize both user sovereignty and responsible governance.

Further reading and related coverage include analyses of privacy regimes in other networks and ongoing discussions about how selective-disclosure frameworks align with financial crime prevention expectations. The field remains dynamic, with stakeholders weighing architecture choices that could define how private data and regulatory obligations coexist in on-chain ecosystems.

This article was originally published as Startale App Expands Privacy for Private Soneium Transfers on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Anti-money-laundering enforcement has overtaken securities violations as the principal regulatory threat facing crypto firms, according to CertiK’s State of Digital Asset Regulations report. The U.S. Department of Justice and the Financial Crimes Enforcement Network together imposed more than $1 billion in AML-related fines during the first half of 2025. The development signals a sharp regulatory pivot away from the Securities and Exchange Commission-led enforcement cycle that once dominated crypto compliance discourse. CertiK notes that SEC crypto-specific penalties collapsed in value, falling from $4.9 billion in 2024 to about $142 million in 2025, a trend the firm attributes to shifts in policy priorities and jurisdictional focus.

According to CertiK’s findings, transaction-monitoring and licensing lapses are now generating penalties that rival or exceed many prior securities cases. High-profile settlements illustrate the trend: the Department of Justice’s February 2025 resolution with OKX amounted to $504 million, and KuCoin agreed to a $297 million settlement in January 2025 for operating as an unregistered money-transmitting business and violations of the Bank Secrecy Act.

Notable AML-related penalties in 2025. Source: CertiK

The surge in AML enforcement highlights regulators’ intensified emphasis on robust compliance controls and financial surveillance, with penalties increasingly stemming from operational shortcomings rather than disclosure failures. The report ties the shift to broader changes in U.S. policy and a re-evaluation of the SEC’s regulatory reach over digital assets.

Sanctions-related crypto transaction volume expanded more than fourfold year over year in 2025, driven principally by Russia-linked networks and state-aligned stablecoin infrastructure. This dynamic compelled regulators across major jurisdictions to prioritize cross-border financial crime compliance and transaction monitoring over token-classification debates.

Across regions, AML penalties followed a similar pattern. European authorities registered a near-quadrupling of fines, surging by about 767% over the period, while Asia-Pacific regulators increasingly relied on license revocations and business-improvement orders rather than monetary penalties. The global trend underscores a move toward a more stringent, process-oriented approach to crypto supervision that emphasizes ongoing compliance programs and operational resilience.

Key takeaways

AML enforcement has surpassed securities penalties in scale during the first half of 2025, reflecting a regulatory priority shift in crypto oversight.

In the United States, DOJ and FinCEN actions produced AML-related fines totaling over $1 billion in H1 2025, a milestone signaling intensified surveillance.

High-profile settlements—OKX for $504 million and KuCoin for $297 million—highlight the risk to exchanges and other crypto-asset businesses from licensing failures and BSA violations.

Global enforcement trends show rapid growth in sanctions-related activity, with Europe and Asia-Pacific pursuing more aggressive compliance actions, including licensing and exit/remediation orders.

Regulatory architecture is shifting toward mandatory security and operational audits and stronger prudential standards for custodians and exchanges, with consequential implications for capital, liquidity, and asset segregation.

Regulatory architecture in flux: from policy to practice

The enforcement pivot aligns with broader regulatory shifts documented in CertiK’s report. Stablecoins are moving beyond design debates toward concrete implementation across jurisdictions, with statutory and regulatory regimes maturing from concept to operation. Notable milestones include legislative and policy pathways from the GENIUS Act to the Markets in Crypto Assets (MiCA) framework, which collectively aim to establish binding rules for digital assets, stablecoins, and related infrastructure.

Prudential standards for market infrastructure—custodians and crypto exchanges—are tightening. Requirements now address capital adequacy, asset segregation, liquidity management, and recovery planning. In parallel, the Basel Committee’s cryptoasset prudential standards are slated for implementation beginning January 1, 2026, subject to local adoption. The framework creates a bifurcated treatment of cryptoassets: Group 2 assets (including Bitcoin and Ether) face near-100% capital charges, while Group 1 assets (such as tokenized traditional instruments and qualifying stablecoins) receive standard risk-weighting. This division risks a structural disconnect for large-scale institutional adoption, particularly in bank balance sheets where capital costs influence holding patterns.

CertiK noted that banks already under regulator supervision in jurisdictions like Singapore and the EU are encountering the practical effects of these evolving standards. The shift increases the cost of holding crypto assets on balance sheets and reinforces the importance of robust custody, risk-management, and reporting capabilities for institutional clients and banks alike.

According to Cointelegraph’s reporting on CertiK’s findings, the regulatory emphasis is broadening from asset classification to the reliability of operational controls and compliance programs. The move reflects a desire to close governance, risk, and control gaps that have historically enabled illicit activity and financial crime through crypto channels.

Smart contract audits and the evolving compliance baseline

Auditing and security standards are increasingly being folded into licensing and supervisory expectations across major markets. CertiK described a trajectory whereby rigorous security assessments are no longer voluntary best practices but are becoming de facto prerequisites for market access. Regulators’ push toward formal audits coincides with heightened concern about accountability in decentralized finance and governance models.

Regulatory attention to DeFi governance is rising in tandem with audit requirements. A European Central Bank working paper cited in CertiK’s analysis highlights that governance consolidation within major DeFi protocols complicates MiCA oversight, underscoring the need for clear accountability in a landscape where code and control may sit with disparate actors. CertiK’s review of the top 100 exploited protocols found that 80% had never undergone a formal security audit prior to a breach, and those unaudited protocols accounted for 89.2% of total value lost. Moreover, 2025 losses by value were dominated by infrastructure compromises, such as private-key theft and access-control failures, which accounted for 76% of total losses by value, signaling a shift from purely code-level exploits to broader operational risk.

The firm also observed that regulators often defer to supervised entities to identify and mitigate risks, with annual testing, resilience drills, and source-code reviews forming the cornerstone of a jurisdictional compliance program. While some regulators require annual audits or ongoing security testing, they typically avoid prescribing an overly prescriptive scope to preserve insurers’ and firms’ flexibility in implementing robust controls.

From a practical standpoint, these developments matter for institutions and compliance teams because they reshape onboarding and ongoing supervision considerations. Banks and fintechs seeking to operate or expand digital-asset activities must demonstrate robust KYC/AML programs, secure custody arrangements, and demonstrable risk governance that aligns with evolving prudential standards and cross-border supervision expectations. As CertiK’s spokesperson explained to Cointelegraph, regulators globally are signaling that governance, operational resilience, and security audits are integral to licensure and ongoing oversight.

Related: AMLBot highlights social engineering as a leading factor in 2025 crypto incidents

Looking ahead, the convergence of AML enforcement with broader regulatory modernization suggests a tightening of the compliance perimeter for crypto firms. The emphasis on licensing-driven enforcement, cross-border cooperation, and capital-adequacy discipline for custodians and exchanges will shape the operating models of exchanges, banks exploring digital-asset services, and institutional traders alike. The push toward mandatory audits and stronger governance standards also raises questions about the competitive landscape: entities with advanced risk-management capabilities may gain preferential access to banking relationships and market corridors, while those with weaker controls could face accelerated remediation orders or exits from regulated markets.

For compliance teams, the takeaway is clear: the regulatory baseline is shifting from “best practice” to “binding requirement” for critical control functions. The 2025 enforcement environment demonstrates that penalties are increasingly tied to operational execution—how firms monitor transactions, verify counterparties, manage keys and access, and maintain auditable records—rather than merely to disclosure-related missteps.

Closing perspective: the regulatory trajectory indicates that crypto supervision will continue to converge with traditional financial crime controls. Institutions should monitor ongoing Basel developments, MiCA implementation, and cross-border enforcement dynamics, while preparing for tighter licensing regimes and mandatory security audits as the standard of fit for regulated digital-asset activities.

This article was originally published as AML Fines Surpass SEC Cases, Elevating Crypto Regulatory Risk on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

The recovery effort for rsETH, stalled by the April Kelp bridge incident that released 116,500 rsETH (roughly $293 million at the time) without a corresponding burn on Unichain, is moving into a formal technical phase. The DeFi United coalition, linked to Aave, published a plan to restore rsETH backing by converting committed ETH into rsETH in staged tranches and depositing the tokens into the bridge’s lockbox. This approach aims to resume normal bridge operations once the backing is fully restored. LayerZero and Kelp have also implemented additional security measures ahead of a full return to service, according to Aave.

Parallel to the backing restoration, DeFi United outlined steps to unwind attacker-linked positions across Aave and Compound to reclaim collateral and repair market distortions caused by the exploit. The coalition notes that seven addresses associated with the attacker still hold active rsETH-backed positions on Aave and Compound, representing about 107,000 rsETH of the original 116,500 rsETH released.

The broader context for rsETH recovery continues to unfold as the ecosystem coordinates funding, governance, and technical execution. Earlier coverage highlighted a broader pledge of ETH to restore rsETH backing, and the current plan builds on that momentum with a concrete, vote-dependent process.

The proposed sequence would temporarily adjust the rsETH oracle price to enable controlled liquidations, transfer recovered collateral to a DeFi United multisig, restore the oracle, redeem the rsETH for ETH, and use the resulting funds to clear deficits across affected markets. The recovery plan thus transitions from pledges and public commitments to a coordinated technical process that relies on governance approvals, temporary oracle changes, and execution across several DeFi protocols. While designed to restore rsETH backing, the plan remains contingent on DAO votes, finalized agreements, and the attacker not disrupting the liquidation steps.

Source: Aave

Ethereum backers join the recovery effort

The technical plan follows earlier moves to secure funding and governance support for rsETH restoration. On Monday, Consensys and Ethereum co-founder Joe Lubin joined DeFi United with a commitment of up to 30,000 ETH to back the recovery, while Sharplink, a publicly traded Ethereum treasury company, joined in an advisory role to help structure the plan.

As part of the broader push, Aave Labs had asked the Arbitrum DAO to release 30,765 ETH that had been frozen by the Arbitrum Security Council following the exploit and redirect those funds to DeFi United. The goal is to accelerate the restoration of rsETH backing and stabilize affected markets.

Earlier coverage noted that crypto protocols pledged about 43,000 ETH to the rsETH relief effort, underscoring the ecosystem-wide appetite to address the aftermath of the breach.

As of the latest update, DeFi United’s website shows roughly $302.26 million in total raised or committed toward the rsETH recovery, equivalent to about 132,706.903 ETH. Some commitments remain subject to DAO votes and final execution, reflecting the governance-intensive nature of the plan.

DeFi United secured over $300 million in commitments. Source: DeFi United

The initiative sits at the intersection of cross-chain security, governance, and rapid liquidity management. By moving toward a structured, multi-step restoration rather than relying solely on pledges, the effort aims to reduce the risk of a prolonged imbalance between rsETH and its backing assets while preserving user trust in the affected protocols.

What this means for users and markets

For rsETH holders and the broader DeFi ecosystem, the plan represents a carefully staged attempt to restore collateral behind a pegged asset that saw a rapid distribution of backings during the breach. If successful, the process could set a precedent for how multi-chain bridges and restaking ecosystems manage post-incident recoveries without triggering abrupt slippage or cascading liquidations. The reliance on governance votes underscores the ongoing tension between rapid response and community consent in DeFi crisis management.

Investors and traders will want to watch the timeline for governance approvals, the pace of ETH-to-rsETH conversions, and the execution across Aave, Compound, and the implicated bridge components. The involvement of high-profile supporters—Consensys, Joe Lubin, and Sharplink—adds credibility to the plan, but the execution still hinges on attacker behavior and the stability of oracle adjustments during liquidations.

Next milestones to monitor

Key milestones include finalization of the governance process to authorize the tranche-based ETH-to-rsETH conversions, the operational deployment of the restored backing into the lockbox, and the restoration of oracle feeds to normal levels after backing is re-established. The plan also requires the attacker’s positions to be reliably unwound without triggering further market impairment, an outcome that hinges on coordinated liquidations and cross-protocol cooperation.

Additionally, continued updates on the Arbitrum DAO’s actions and any further commitments from ecosystem participants will shape the speed and reliability of the restoration. The evolving liquidity landscape as new funds are deployed and balances are reset will inform how quickly rsETH markets can regain normal functioning and reduce systemic risk across the DeFi stack involved in the recovery.

Readers should stay attentive to governance votes and official statements from DeFi United, Aave, and partner protocols as the plan progresses. The rsETH restoration is a multi-faceted effort that requires precise coordination across several entities, and the outcome will influence how similar crisis-response playbooks are interpreted in future cross-chain incidents.

This article was originally published as Aave-Linked DeFi United Reveals rsETH Recovery Roadmap on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

A joint guidance request from Japan’s top regulatory bodies warns that crypto assets can elevate money laundering risk in real estate transactions. The document, published on Tuesday, is issued by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the Financial Services Agency (FSA), the National Police Agency (NPA), and the Ministry of Finance (MOF). It targets major real estate and crypto industry organizations, including the Japan Cryptocurrency Business Association and several national real estate federations.

“Crypto assets, which have the nature of being transferred instantly across national borders, are considered to pose a high risk of being used as a payment method in real estate transactions for the purpose of money laundering,” the guidance states. The multi-agency appeal seeks to bring bank-like AML expectations into crypto-involved property deals by demanding robust customer due diligence, suspicious transaction reporting, and police notification when criminal activity is suspected. According to Cointelegraph, the move underscores a broader pattern of tightening oversight as authorities align crypto-regulatory frameworks with traditional financial controls.

Key takeaways

Four Japanese agencies jointly warn that crypto assets can enable money laundering in real estate deals, urging banks, brokers, and crypto firms to strengthen AML controls.

Real estate agents are urged to perform customer due diligence on transactions involving crypto and to file suspicious-activity reports with regulators and, where warranted, notify police.

Conversions from crypto to fiat in the context of client transactions may fall under the crypto asset exchange business category, which requires proper registration under the Payment Services Act.

Exchanges should monitor for crypto proceeds used in property deals and flag unusually large transfers that do not align with a customer’s financial profile.

Under the Foreign Exchange and Foreign Trade Act, anyone receiving crypto worth more than 30 million yen from overseas must file a payment report with authorities.

Regulators coordinate to curb AML risks in crypto-assisted property trades

The joint guidance represents a coordinated stance by MLIT, FSA, NPA, and MOF to address vulnerabilities at the intersection of crypto markets and real estate. Recipients include key real estate associations and the leading crypto industry body, signaling a concerted effort to standardize risk controls across both sectors. The guidance frames crypto as an instrument with capabilities for rapid cross-border transfers, which could facilitate illicit activity if not properly monitored and controlled.

By elevating AML expectations in property transactions involving crypto, authorities aim to mirror the due diligence and reporting regimes long applied to fiat-based financial activity. The document calls for heightened customer verification, enhanced transaction screening, and timely reporting to regulators when red flags arise. In practical terms, the guidance may impose additional compliance burdens on real estate brokers, crypto exchanges, and ancillary service providers that facilitate asset transfers or convert crypto to fiat for property purchases.

Expanded due diligence and reporting obligations for crypto-involved transactions

The guidance explicitly instructs real estate brokers to conduct thorough customer due diligence on transactions that involve crypto assets. This includes verifying the identity of clients, understanding the source of funds, and assessing the purpose of the transaction. When indicators of suspicious activity emerge, entities are required to file suspicious transaction reports with the appropriate authorities and, if criminal activity is suspected, notify law enforcement promptly.

In effect, the document elevates AML expectations to crypto-property deals, aligning them with standards that apply to traditional financial services. For crypto firms, this translates into reinforced verification processes, enhanced record-keeping, and closer coordination with financial regulators. For real estate professionals, the guidance delineates a clearer path to compliance in a space where ownership and transfer mechanisms can involve digital assets that cross borders in seconds.

The guidance also emphasizes the risk management dimension of crypto usage in property transactions. By prioritizing due diligence and reporting, regulators aim to improve traceability of funds and deter the use of digital assets for concealment or misrepresentation in real estate dealings. Analysts will watch how these expectations interact with existing AML/KYC regimes and how they influence licensing, supervision, and enforcement practices across both crypto and real estate ecosystems.

Cross-border reporting requirements and registration considerations

A notable element of the guidance is the emphasis on cross-border implications. The document reminds market participants that conversions of crypto into fiat for clients could fall under the category of “crypto asset exchange business” under the Payment Services Act, an activity that requires proper registration. Operating without registration could expose firms to regulatory risk and potential penalties.

Additionally, the guidance calls for exchanges to scrutinize cases in which a customer receives property sale proceeds in crypto and then engages in unusually large, unexplained transfers. Such patterns may signal attempts to obscure the origin of funds or bypass reporting obligations, and would be treated as concerns warranting closer review or reporting to authorities.

Beyond registration considerations, Japan’s cross-border data-sharing and reporting frameworks under the Foreign Exchange and Foreign Trade Act add another layer of oversight. Specifically, the act requires anyone receiving crypto valued over 30 million yen from overseas to file a payment report with the appropriate authorities. The threshold establishes a concrete benchmark for international transfers and reinforces the expectation that large inbound crypto flows be monitored for compliance and enforcement purposes.

Regulatory architecture: crypto as financial instrument and broader policy context

The joint guidance arrives on the heels of a broader regulatory shift in Japan. Earlier this month, Japan amended the Financial Instruments and Exchange Act to classify crypto assets as financial instruments, moving them from the payments category into a regime that applies to traditional securities. The reform narrows the field for illicit activity while expanding the disclosure and governance obligations on crypto issuers.

The amendments prohibit insider trading and other market-manipulation practices involving undisclosed information related to crypto assets. They also impose annual disclosure requirements on crypto issuers and tighten penalties for unregistered crypto exchanges. In conjunction with these changes, the government has signaled continued policy refinement, including plans to cap crypto profits taxes at a flat 20 percent, underscoring a broader push toward formalizing crypto markets within established financial regulatory rails.

For market participants, these developments imply a more integrated oversight approach that mirrors international trends in AML/KYC supervision and market integrity. The shift to treating certain crypto activities as financial instruments aligns Japan with efforts elsewhere to render crypto markets more transparent, securely regulated, and sourced to the protections ongoing in traditional securities markets. Institutions—banks, exchanges, brokers, fund managers, and real estate firms—will increasingly need to navigate a broader spectrum of licensing, reporting, and governance requirements as they participate in crypto-enabled finance and real estate transactions.

In a broader policy context, the changes dovetail with ongoing regulatory conversations in other jurisdictions about the alignment of crypto regimes with cross-border standards. While MiCA in the European Union offers one model of digital-asset regulation, Japan’s approach emphasizes concrete registration, disclosure, and AML controls within a domestic framework that still contends with international enforcement cooperation and regulatory divergence.

Closing perspective

The joint guidance signals a clear intent to deter illicit finance by embedding crypto-enabled real estate transactions within established regulatory safeguards. As Japanese authorities tighten supervision across crypto and real estate channels, institutions—especially exchanges, brokers, banks, and asset managers—should anticipate evolving registration, due diligence, and reporting expectations. Observers will monitor how these measures interact with international standards and whether further clarifications or reforms will refine the balance between innovation and compliance in Japan’s evolving crypto landscape.

This article was originally published as Japan Requests AML Tightening for Real Estate and Crypto Deals on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Core Scientific is driving a transformative shift in its business model, planning to convert its Pecos, Texas campus into a high-density AI-focused data center complex that could reach up to 1.5 gigawatts of gross power capacity. The company said that roughly 1 GW of that capacity would be available for leasing, signaling a move beyond traditional cryptocurrency mining toward AI compute infrastructure amid growing demand for data center capacity.

In a press release issued on Monday, Core Scientific outlined the transition as part of its strategy to differentiate its buildout of next-generation AI infrastructure using its in-house engineering capabilities. The project’s initial data hall has completed foundational work and is moving into vertical construction, with the company targeting first capacity in early 2027. Core Scientific noted that about 300 megawatts of power at the Pecos site, previously allocated to Bitcoin mining, are being repurposed for the new data center operations.

The expansion is supported by new power agreements, including an additional 300 megawatts secured under contract with the local utility provider, and land acquisitions to support scale. Core Scientific said it has acquired more than 200 acres in the Pecos area to accommodate the buildout.

The company also disclosed a broad financing plan to fund the expansion, revealing plans to raise approximately $3.3 billion through senior secured notes due 2031, intended to finance data center development across multiple states including Georgia, Texas, North Carolina and Oklahoma. This follows a separate $1 billion senior credit facility secured from Morgan Stanley in March, underscoring the capital-intensive path of building out AI-ready infrastructure at scale.

Core Scientific has historically derived a substantial portion of its revenue from mining digital assets, but it has gradually shifted toward offering infrastructure services. The Pecos project illustrates how miners are repurposing existing facilities to capitalize on the sustained demand for AI compute capabilities, even as the economics of mining face ongoing pressures.

Core Scientific shares have risen about 44% so far this year. Source: Yahoo Finance

Key takeaways

Core Scientific aims to build a Pecos, Texas, data center campus with up to 1.5 GW gross capacity, roughly 1 GW of which could be leased to customers for AI workloads.

About 300 MW of power previously used for Bitcoin mining at Pecos is being repurposed for data center operations, with the first data hall expected to deliver initial capacity in early 2027.

The company has acquired over 200 acres in Pecos to support the build, and it has secured additional power contracts totaling about 600 MW when combined with existing arrangements.

Financing support includes a $3.3 billion plan via senior secured notes due 2031, complemented by a $1 billion Morgan Stanley credit facility, signaling a broad push into AI-ready infrastructure across several states.

Core Scientific’s Pecos expansion: from mining to AI data centers

The Pecos plan represents a deliberate pivot from pure mining activity toward high-density AI compute, leveraging Core Scientific’s engineering expertise to design scalable, data-center-centric infrastructure. The company emphasized that the first data hall has progressed to vertical construction, with a timeline that anticipates initial capacity becoming operational in early 2027. The repurposing of roughly 300 MW of the site’s existing power load highlights a broader industry trend: crypto facilities are increasingly being repurposed to support AI workloads as demand for compute power grows beyond blockchain validation.

Adam Sullivan, Chief Executive Officer of Core Scientific, underscored the strategic rationale, stating, “We continue to leverage our deep in-house expertise to differentiate how we build and scale next generation artificial intelligence infrastructure.” This sentiment reflects a broader industry push to convert crypto-era assets into flexible, AI-forward data centers capable of housing GPU-intensive workloads, training models, and running inference at scale.

The Pecos project also includes a furniture of land assets—Core Scientific has acquired more than 200 acres—to anchor long-term expansion, aligning with plans to deploy a significant amount of capacity in a single campus. The plan to carve out roughly 1 GW for leasing aligns with a perceived demand gap in premium AI compute space, particularly for operators seeking co-location and predictable power contracts.

Funding the buildout: debt, power, and land

Financing a multi-hundred-megawatt, multi-state data center push requires patient capital. Core Scientific’s plan to raise about $3.3 billion through senior secured notes due 2031 signals a move from opportunistic opportunism to a structured capital strategy designed to sustain multi-year construction, feed-in power capacity, and support ongoing operations as customers come online. This funding plan sits alongside a $1 billion Morgan Stanley credit facility announced earlier in the year, which the company described as part of its broader financing framework to accelerate data center development across Georgia, Texas, North Carolina and Oklahoma.

Power availability remains a central constraint in the AI-data-center equation. Core Scientific’s Pecos expansion hinges on securing reliable, scalable power amid a regional energy market that has historically supported large-scale computing deployments. The company’s additional 300 MW under contract with the local utility provider helps de-risk the project, but ongoing power planning and grid coordination will be critical as the campus scales toward 1.5 GW gross capacity.

Beyond Pecos, Core Scientific’s strategy includes pursuing further expansion via behind-the-meter solutions and additional land acquisitions to sustain a longer-term growth trajectory. The company’s move mirrors a broader trend among crypto miners: diversify revenue streams by converting facilities into data centers that can host AI workloads, a market dynamic that has attracted attention from investors seeking exposure to AI compute infrastructure without the volatility of mining cycles.

A broader AI-infrastructure shift in crypto-mining

Core Scientific is not alone in this pivot. The sector has seen several peers exploring revenue streams tied to AI compute and data-center capabilities alongside their mining operations. In February, MARA Holdings disclosed the acquisition of a 64% stake in Exaion, a French infrastructure company expanding into AI services, signaling a strategic move to broaden AI-focused offerings beyond traditional mining. The broader lineup of miners—Hive, Hut 8, TeraWulf and Iren—have also signaled and undertaken steps to repurpose mining facilities into data centers or AI-focused campuses as margins in mining tighten and AI workloads proliferate. MARA’s Exaion stake is a notable example of this trend.

Related developments in the energy-to-AI transition include the reported near-term sale of idle assets in the industrial sector. Alcoa is close to selling its Massena East smelter in upstate New York to NYDIG, a deal expected to close by mid-year, as the plant has remained idle since 2014 due to high energy costs and global competition. The move aligns with a broader wave of crypto miners seeking to anchor AI data-center capacity in repurposed industrial assets. Massena East and, earlier, Century Aluminum’s Hawesville smelter sale to TeraWulf for $200 million to be converted into a high-performance computing and AI facility illustrate this trend in action. Century Aluminum Hawesville was cited in industry reporting as part of the same wave of industrial-to-AI data-center conversions.

The confluence of higher AI compute demand, capital-intensive buildouts, and the repurposing of mining infrastructure suggests a structural shift in how crypto players engage with data center economics. The trend also dovetails with broader coverage of AI data-center backbones that quietly emerged from the crypto era, underscoring how the sector’s assets are being repurposed to power the next wave of digital infrastructure. CoreWeave and related reporting have underscored these dynamics for investors looking beyond immediate mining yields.

What to watch next

As Core Scientific advances toward its 2027 capacity milestone, investors and industry observers will be watching several key factors: the pace of vertical construction at Pecos, the timing and reliability of power deliveries, and whether the leasing demand materializes at the projected scale. The financing package will also come under scrutiny as proceeds are deployed across multiple sites, with the ability to meet debt obligations and service ongoing capital needs a critical consideration for lenders and future project partners.

Beyond Core Scientific, the sector’s AI-forward pivot remains under observation. The timing of AI deployment milestones at Exaion, the integration of repurposed mining facilities into AI data centers, and the long-term profitability of these ventures will shape how crypto miners position themselves in a world where AI infrastructure investment appears increasingly attractive to both developers and institutions.

Readers should monitor updates from Core Scientific as project approvals progress, as well as any additional capital-raising moves or land acquisitions that may signal further capacity expansion across the United States.

This article was originally published as Core Scientific Pursues 1.5GW AI Data Center Campus in Texas on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

U.S. President Donald Trump has edged his position on prediction markets closer to cautious acceptance after a period of public skepticism, signaling that political and regulatory dynamics abroad are influencing his stance. Speaking to reporters in Florida, Trump acknowledged that while some critics remain unconvinced, “a lot of people who are very smart” support these markets, and he suggested the United States risks being left out if it doesn’t participate as other countries move forward.

That shift comes after a separate set of remarks in which Trump said he was not happy with prediction markets overall, describing the global landscape as increasingly “a casino” and noting the proliferation of betting platforms across the world. The remarks underscore a tension between domestic regulatory scrutiny and a rapidly expanding, data-driven sector that has drawn significant user and investor interest in recent months.

Key takeaways

Prediction markets surged in popularity, with Polymarket and Kalshi reporting record activity; combined trading volumes reached $23.6 billion in March, per Token Terminal.

Top political figures’ families and businesses are entwined with these platforms, complicating public perception and regulatory considerations.

Trump’s anticipated involvement in tech-enabled markets extends to his business interests, including a planned Truth Social partnership with Crypto.com for prediction markets, and his family’s advisory roles in related ventures.

The regulatory backdrop remains unsettled, with ongoing enforcement and legal debates about how gambling and prediction markets should be treated in the U.S. and abroad.

Prediction markets in the spotlight as usage climbs

Two of the most prominent prediction-market platforms—Polymarket and Kalshi—have together captured rising demand, attracting a broad user base seeking to hedge or speculate on real-world events. According to data cited by Token Terminal, the combined trading volume across these sites reached a record level in March, underscoring a sustained appetite for on-chain- or web-based event markets despite ongoing policy debates across jurisdictions.

The growth in activity arrives amid ongoing regulatory scrutiny in the United States and abroad. A recent wave of attention has focused on whether prediction markets should be treated as gambling or as legitimate information markets with potential applications for policymaking, risk assessment, and civic discourse. This tension is not new, but the pace and breadth of participation have intensified, driving investors and users to weigh both risk and opportunity in these platforms.

Family ties and corporate ambitions complicate the picture

The involvement of high-profile political figures and their families adds a layer of complexity to the trajectory of prediction markets. Donald Trump Jr. has been associated with Polymarket since August, joining the company’s advisory board. He also serves as an adviser to Kalshi, a role he took on in January 2025, highlighting how personal affiliations intersect with a rapidly evolving market landscape.

Beyond personal ties, Trump’s business ventures have signaled intended participation in the prediction-market space. In October, Trump Media announced plans to roll out prediction-market functionality on Truth Social, in partnership with Crypto.com. The arrangement would place market-tracking and betting capabilities on the platform, potentially broadening exposure to a U.S. audience for event-based markets. It’s worth noting that Trump divested his stake in Trump Media upon assuming office, transferring shares to a trust for which Trump Jr. is the sole trustee, a move that continues to shape the governance around any future initiatives tied to the brand.

These developments come against a backdrop of independent reporting and industry analysis that emphasize how the lines between technology platforms, political discourse, and regulatory oversight are increasingly intertwined. While executives and high-profile figures may help drive adoption, policymakers have signaled a readiness to scrutinize these markets more closely, particularly where foreign competition and cross-border liquidity intersect with U.S. consumer protection standards.

Regulatory context and what could come next

The broader regulatory environment remains unsettled. Earlier this year, concerns about applying traditional gambling laws to prediction markets drew attention from U.S. regulators, along with enforcement actions in other jurisdictions. In coverage linked to Cointelegraph, regulatory authorities have signaled a willingness to challenge or constrain certain market structures and operators, underscoring that user safety and compliance are likely to shape the pace of growth going forward.

Analysts note that the surge in volume and the involvement of prominent political figures could accelerate calls for clearer rules and standardized practices. This could include more explicit definitions of what constitutes a permissible prediction market, how customer funds are safeguarded, and what disclosures are required for operators and participants. In the near term, observers will be watching for how the U.S. approach evolves under current agencies and how international counterparts—where some countries have already embraced these markets—compare in terms of consumer protections, liquidity, and market integrity.

Recent coverage also points to ongoing discussions about the role these platforms might play in informing public policy or market risk assessment. Proponents argue that well-designed prediction markets aggregate information efficiently and can serve as useful tools for forecasting and governance. Critics, however, caution about moral hazard, manipulation risks, and the potential for inappropriate betting on sensitive or risky events.

For investors and builders, the main takeaway is that the sector’s momentum is unlikely to fade soon, but the road ahead hinges on regulatory clarity and credible risk controls. The next chapters will likely reveal how traditional financial oversight and innovative market design can converge to create sustainable ecosystems that are both compliant and genuinely useful to participants seeking to express hedges or opinions on real-world developments.

Meanwhile, observers should monitor both the policy discourse in Washington and the actions of foreign jurisdictions where prediction markets are already more mature. If the U.S. broadens access or introduces clearer guidelines, it could unlock a wave of new participants and capital. Conversely, tighter restrictions could reallocate activity to overseas platforms or compel operators to rethink product design to align with strict regulatory expectations.

As markets watch for signals from regulators and industry players, the coming quarters may reveal whether the recent rhetoric shift among political figures translates into practical policy or remains a cautious, interest-driven stance. The evolving dialogue between lawmakers, platform operators, and users will likely shape the pace of innovation in public-interest forecasting and its broader implications for governance and markets.

Readers should keep an eye on any formal regulatory updates from U.S. authorities, as well as announcements from platform operators about product changes, liquidity shifts, or new geographies of access. The balance between opportunity and oversight will determine how quickly prediction markets mature from fringe tools into mainstream, widely adopted instruments in the crypto and broader financial ecosystems.

This article was originally published as Trump Signals Easing on Prediction Markets, Crypto Markets React on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.