What Happened in the Courtroom? Terraform Labs founder Do Kwon was sentenced to 15 years in prison on Thursday in the Southern District of New York, bringing a major chapter of the 2022 Terra collapse to a close. The term exceeds the 12-year sentence federal prosecutors requested, marking one of the harshest rulings connected to a crypto failure. According to Inner City Press, U.S. District Judge Paul Engelmayer told Kwon he “chose to lie” and “chose poorly,” pointing to decisions he argued contributed to the collapse of TerraUSD (UST) and the related Luna token. The implosion erased roughly $40 billion in market value and set off a chain reaction that toppled lenders, trading firms and hedge funds across the sector. Kwon’s lawyers pushed for a five-year sentence, citing academic research and analyses from Chainalysis suggesting that coordinated trading from outside parties may have exploited weaknesses in Terra’s design. Prosecutors countered that the fraud centered on Kwon’s own statements about the system’s stability and the concealment of key risks. Investor Takeaway The 15-year sentence reinforces how courts are now treating major crypto failures: not as market accidents, but as fraud cases when misleading statements are involved. This may shape how future token projects disclose risk. Why Prosecutors Said the Sentence Should Be Harsh Kwon was charged in March 2023 with wire fraud, commodities fraud, securities fraud, conspiracy to commit fraud and market manipulation, and money laundering. The charges stemmed from TerraUSD, an algorithmic stablecoin designed to maintain a $1 price through on-chain incentives and its relationship with Luna. The mechanism broke in May 2022 when volatility overwhelmed the model, triggering a downward cycle that the system could not correct. U.S. authorities said Kwon misled investors about how the mechanism worked, its risks and its likelihood of holding its peg under stress. He later pleaded guilty in August to wire fraud and conspiracy to defraud. Without that plea deal, he faced a possible 135-year sentence if convicted on all nine charges. Even after the agreement, the maximum penalty was 25 years. Prosecutors also sought a $19 million forfeiture. In court filings, the government cited the scale of the losses and Kwon’s actions before the collapse. The case became a proxy for broader scrutiny of token models that blend algorithmic price maintenance with aggressive marketing. How Terra’s Collapse Triggered a Wider Breakdown TerraUSD’s crash became one of the defining events of the 2022 crypto market downturn. The stablecoin’s break from its peg quickly cascaded into the Luna token, which spiraled to near-zero. Several firms heavily exposed to Terra lost funding lines, collateral or liquidity, contributing to the failures of Celsius, Voyager and multiple trading desks. Regulators across the U.S., Europe and Asia cited the incident as evidence that certain stablecoin structures posed systemic risks when scaled without robust safeguards. The case also renewed debate over algorithmic stablecoins and whether they can reliably function during market stress. Investor Takeaway Terra’s collapse reshaped how lawmakers view stablecoins. Algorithmic models now face tighter scrutiny, and future projects will likely need stronger transparency to avoid similar fallout. What Comes Next for Do Kwon? Kwon’s legal saga spans multiple jurisdictions. He was arrested in Montenegro in March 2024 for traveling with forged documents after months of evading authorities. Both the U.S. and South Korea sought his extradition, leading to a prolonged dispute over which country would prosecute him first. He was eventually extradited to the U.S. in December 2024. Additional proceedings may follow. According to CoinDesk, Kwon must serve at least half of his U.S. sentence before he can request a transfer to South Korea. He will also receive credit for the 17 months he spent in a Montenegrin prison. The civil cases attached to the collapse, including actions filed by investors and regulatory agencies, continue in parallel. Terraform Labs remains in bankruptcy, and multiple related entities are still under investigation for their roles in the crash. The ruling brings some closure to a collapse that reshaped the digital asset landscape, though the broader regulatory and market consequences continue to unfold. For policymakers and courts, Terra became the example they return to when assessing how failures in token design and disclosure can ripple far beyond a single project.

What Did Binance Change in Its Futures API? Binance has added a new endpoint to its USDⓈ-M futures API — a move that points toward internal preparations for stock-linked perpetual futures. A Dec. 11 update to the exchange’s derivatives documentation introduced a REST endpoint, POST /fapi/v1/stock/contract, created for users to sign a “TradFi-Perps agreement contract.” This type of agreement is commonly required before trading perpetual products tied to traditional finance assets. No product announcement has been issued, and Binance has not provided details about any stock perpetual markets at the time of writing. Still, the presence of a dedicated contract-signing endpoint indicates that technical groundwork is being built quietly in the background. The Block contacted Binance for comment. Investor Takeaway The new endpoint suggests Binance is preparing infrastructure for equity-linked perpetual futures. Even without a launch date, the code update points to a possible expansion of the exchange’s derivatives catalogue. Why Would Stock Perpetuals Matter for Crypto Traders? Stock perpetual contracts apply the crypto-native perpetual futures model to traditional equities. Instead of trading during standard market hours, users can take long or short positions on stocks at any time, with settlement often handled in stablecoins such as USDT. These instruments replicate equity exposure without touching the regulated stock market or conventional brokers. For traders active in crypto markets, the appeal is clear: 24/7 access, no account requirements with traditional intermediaries, and the ability to express macro views or hedge portfolios directly on crypto platforms. For exchanges, equities represent a large asset class that can widen their user base and strengthen derivatives volumes. The market remains small, in part because regulatory boundaries are not fully defined. Still, the infrastructure is slowly expanding as tokenized assets and synthetic equity markets gain speed across both centralized and decentralized venues. How Does Binance’s Move Fit Into Industry Momentum? The API update arrives amid rising activity around real-world-asset derivatives. Bybit and Kraken have already introduced tokenized stock products through partners such as Backed Finance. These offerings allow users to trade blockchain representations of equities within existing crypto market structures. Coinbase has taken a different route, expanding its U.S. derivatives arm this year with CFTC-regulated nano futures for bitcoin and ether. While these products are not linked to equities, Coinbase executives have said the build-out could support a more complete derivatives lineup in the future. Several decentralized venues are attempting to capture the same opportunity. Ostium — supported by General Catalyst and Jump Crypto — operates as an RWA-perpetuals platform offering 24/7 markets tied to equities, metals and energy. Since 2023, the protocol has raised nearly $27.8 million, with growth driven by interest in synthetic markets that mirror traditional assets. Other DeFi platforms, including Hyperliquid and Lighter, have pushed into synthetic stock trading as well. According to data from The Block, decentralized derivatives activity surged through 2025, with volume exceeding $1 trillion across October and November. Offshore exchanges have also leaned into tokenized equities as users look for round-the-clock market access. Investor Takeaway Stock perpetuals could give crypto venues a new high-volume category, blending equity trading with crypto’s 24/7 model. Binance’s API update shows the technical pieces are starting to appear. Is a Launch Coming Soon? There is no timeline for the release of any stock-linked perpetual futures on Binance, and the exchange has provided no public explanation for the added endpoint. API updates often precede product rollouts, but they can also reflect internal testing or features that never reach final release. What is clear is that the competitive environment around synthetic equity markets is tightening. Exchanges are searching for new categories that can drive activity beyond bitcoin and ether derivatives, and tokenized stock exposure has quickly become one of the more active areas of experimentation. Binance’s API addition puts it alongside peers already exploring the intersection of digital assets and equity-style trading. If Binance decides to move ahead, stock perpetual contracts would expand its derivatives suite into an asset class that operates around the clock only in crypto. Whether the endpoint signals an imminent launch or a longer-term internal build, the update confirms the exchange is working on infrastructure that aligns with where the market’s interest is moving.

KEY TAKEAWAYS Ondo Finance bridges TradFi and DeFi via tokenized Treasuries and cash funds. Partnerships with State Street and Galaxy Digital validate Ondo’s institutional relevance. ONDO token value depends on protocol adoption, AUM growth, and multi-chain integration. SWEEP fund rollout could structurally support long-term token demand. Price is highly sensitive to market cycles, news, and regulatory developments. Long-term potential ranges from $0.45 to $6, depending on adoption, execution, and macro trends.   Ondo Finance has rapidly emerged as one of the most prominent players in tokenized real-world assets (RWAs). Its latest partnerships, most notably with State Street and Galaxy Digital, mark a major step toward institutionalizing on-chain liquidity. These collaborations significantly strengthen Ondo’s long-term positioning, even though they do not guarantee a direct or immediate rise in the ONDO token price. What they do represent is a structural shift: Ondo is increasingly becoming the central liquidity layer for tokenized cash and Treasury-backed products. If adoption, assets under management (AUM), and revenue continue to expand, the ONDO token could benefit meaningfully in the coming market cycle. Understanding Ondo Finance: The Core Business Model Ondo Finance operates at the intersection of traditional finance (TradFi) and decentralized finance (DeFi), with a business model built around tokenizing safe-yield assets such as U.S. Treasuries and money-market-style funds. Its flagship product, OUSG, is a tokenized version of a short-term U.S. Treasury fund, offering a stable yield while maintaining fast mint and redemption cycles on public blockchains. This structure appeals to institutions, stablecoin issuers, onchain treasuries, and advanced DeFi users looking for secure, transparent yield without the constraints of traditional banking hours. The ONDO token serves as: A governance asset for protocol decisions An incentives layer that rewards ecosystem participation A value proxy for the protocol’s AUM, integrations, and adoption As Ondo scales its network of tokenized assets and integrates across chains such as Ethereum and Solana, the ONDO token’s relevance and potential utility increase. The more institutional liquidity flows into Ondo’s ecosystem, the stronger the long-term fundamentals for ONDO become. Inside the State Street & Galaxy SWEEP Partnership A major development came with the announcement of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity fund designed for 24/7 cash management. SWEEP allows qualified institutional purchasers to move capital in and out of the fund using PYUSD, PayPal’s regulated stablecoin. The structure is notable for several reasons: State Street Bank and Trust acts as a custodian, bringing a globally recognized financial institution into tokenized liquidity. Galaxy Asset Management provides the tokenization and operational infrastructure. Ondo Finance is expected to seed the fund with roughly $200 million through its own tokenized Treasury offerings. This seed capital connects SWEEP directly to Ondo’s liquidity network, positioning Ondo as the backbone of early fund activity. In effect, Ondo becomes: A liquidity provider, A bridge between TradFi institutions and onchain capital, and A distribution network for tokenized cash products. This creates a reinforcing loop: SWEEP expands institutional access to onchain liquidity, while Ondo channels more Treasury-backed capital into the ecosystem, strengthening the network’s usefulness, visibility, and asset depth. Why This Matters for ONDO’s Long-Term Value While partnerships alone do not guarantee price appreciation, they reshape the long-term outlook for the ONDO token in several meaningful ways. 1. Institutional Validation Having State Street, a $40+ trillion custodial giant, and Galaxy Digital select Ondo as a core tokenization partner gives the protocol credibility unmatched by most DeFi projects. Institutional partnership signals are a critical driver of RWA adoption. 2. Expanded Market Visibility ONDO’s price previously traded above $0.50 before a short-term retracement, reflecting increased attention. As more institutions engage with tokenized cash products, awareness and perceived legitimacy of the ONDO ecosystem strengthen. 3. Potential AUM Growth Higher AUM in OUSG and related products means: more fee generation stronger liquidity deeper integration in institutional flows Greater governance importance for ONDO holders If SWEEP grows into a major onchain cash management vehicle, Ondo stands to benefit directly from inflows. 4. Reinforced Network Effects Ondo acts as a hub connecting banks, issuers, asset managers, and stablecoins. As tokenized cash becomes more widely adopted, this network effect increases the protocol’s gravity, potentially boosting ONDO’s long-term valuation. ONDO Price Prediction: 2025–2030 Outlook ONDO’s price outlook depends heavily on the success of tokenized cash products, the scale of institutional adoption, and the broader performance of the RWA sector. While the token benefits from major catalysts like the SWEEP partnership with State Street and Galaxy, its future valuation will ultimately track measurable growth in Ondo’s onchain AUM and the durability of its institutional network. Based on current momentum, ONDO is likely to remain volatile in the near term but is positioned for structural appreciation if tokenized funds expand as expected. Over 2025–2030, a reasonable projection range places ONDO between $0.45 and $6.00, depending on execution and market conditions. In the short term (2025–2026), ONDO is expected to trade between $0.45 and $1.20, with upside tied to SWEEP’s early adoption and broader crypto market strength. The token has already shown sensitivity to news cycles, rallying on partnership announcements and retracing shortly after, typical behavior for mid-cap RWA tokens. By the mid-term (2027–2028), price potential expands meaningfully if OUSG, SWEEP, and related funds attract sustained institutional flows. Should Ondo’s products achieve multi-chain reach and meaningful AUM growth, ONDO could find support between $1.20 and $2.80, reflecting more mature fundamentals rather than narrative-driven speculation. Over the long term (2029–2030), ONDO’s trajectory depends on whether tokenized funds become a mainstream financial instrument. If global adoption accelerates and Ondo secures a lasting role as a leading tokenization platform, a valuation between $3.00 and $6.00 becomes plausible. However, slower adoption, competitive pressure from traditional asset managers, or regulatory setbacks could anchor prices closer to the lower end of projections. Overall, ONDO has one of the strongest institutional narratives among RWA tokens, but its price path will mirror actual demand for tokenized cash, not headline partnerships alone. Sustained AUM growth, successful SWEEP rollout, and clear regulatory frameworks will determine whether ONDO realizes its long-term potential. Key Catalysts That Could Drive Long-Term Growth To evaluate ONDO’s true long-term potential, investors should watch for measurable progress rather than market hype. The following factors are especially important: 1. Growth in OUSG and Other Tokenized Funds If OUSG and Ondo’s liquidity funds see sustained AUM increases, it would signal genuine institutional interest and adoption, not just speculation. 2. SWEEP Fund Adoption The number of institutions participating in SWEEP, the volume of swept assets, and the stability of liquidity within the fund will be crucial indicators of long-term success. 3. Multi-Chain Integration SWEEP is expected to launch on Solana first, with compatibility across other chains enabled by partners like Chainlink. Broad multi-chain exposure increases Ondo’s utility and competitiveness. 4. Regulatory Momentum As regulators formalize frameworks around tokenized funds, RWAs, and stablecoins, early players like Ondo may gain a durable advantage. Clear regulations often accelerate institutional involvement. If these catalysts converge during a favorable crypto market cycle, ONDO could experience strong long-term appreciation compared to smaller RWA tokens with limited institutional backing. Risks Investors Should Not Ignore Even with compelling institutional partnerships, ONDO remains a high-risk asset. 1. Execution Risk Launching SWEEP, coordinating cross-chain integration, and scaling institutional adoption are all complex tasks. Delays or technical issues could weaken growth momentum. 2. Regulatory Uncertainty Tokenized securities, stablecoins, and RWA funds are high on regulators’ agendas. Any unfavorable rulings could slow or reverse capital inflows. 3. Market Narrative Concentration If tokenized Treasuries fall out of favor due to changing interest rates or new yield opportunities, Ondo’s value proposition may face pressure. 4. Competition Major financial institutions and blockchain teams are racing to dominate the RWA space. Competing platforms backed by deep-pocketed asset managers could compress fees or fragment liquidity. 5. Token Utility Risk ONDO’s long-term value depends on functional utility tied to protocol usage, not just speculation. If AUM grows but token incentives or governance fail to capture value, price appreciation may lag ecosystem adoption. Navigating Opportunity and Risk in Ondo’s Institutional Growth Ondo’s partnerships with State Street and Galaxy Digital represent one of the strongest institutional validations in the RWA sector to date. They significantly enhance Ondo’s strategic importance in tokenized liquidity and potentially set the stage for long-term value creation. However, ONDO’s price trajectory will ultimately depend on measurable growth in tokenized AUM, the successful rollout and adoption of SWEEP, expanding cross-chain integrations, and a supportive regulatory environment. The narrative is strong, perhaps one of the strongest in the RWA space, but long-term price appreciation will only follow if institutional inflows and protocol revenues scale sustainably over the coming years. FAQs What is Ondo Finance? A platform that tokenizes real-world assets like U.S. Treasuries and provides onchain cash management solutions. How do the State Street and Galaxy partnerships affect ONDO? They strengthen institutional adoption and liquidity for Ondo’s tokenized products, indirectly supporting ONDO’s long-term value. What drives ONDO’s price? ONDO price is tied to AUM growth, token utility, adoption of tokenized cash products, and regulatory clarity. Is ONDO a stable investment? No. It remains a high-risk digital asset with volatility influenced by market cycles and execution risks. What are the key catalysts to watch? Key factors include the growth of AUM in OUSG and related Ondo funds, adoption of the SWEEP fund by institutional clients, expansion across multiple chains, and regulatory developments that impact tokenized securities and cash management products. References Yahoo Finance: Ondo, State Street, Galaxy Digital to Debut SWEEP Liquidity Fund in 2026 Coinspeaker: Ondo, State Street, Galaxy Digital to Debut SWEEP Liquidity Fund in 2026 Blockchainreporter: Ondo, State Street, and Galaxy Launch SWEEP to Bring Cash Management Fully OnChain

KEY TAKEAWAYS Ethereum remains the core execution layer powering most dApps and cross-chain smart contract activity in Web3. Arbitrum leads Layer-2 scaling with efficient optimistic rollups and a fast-growing ecosystem. EigenLayer introduces a new shared-security model through ETH restaking, lowering startup costs for new networks. zkSync uses zero-knowledge proofs to deliver high-performance, privacy-preserving scalability for next-gen applications. IPFS provides decentralized storage for NFTs, dApp frontends, and global content distribution. These five projects work together to solve the blockchain trilemma across scalability, security, and decentralization. Their combined innovations set the foundation for mass Web3 adoption in 2025 and beyond.   The rapid evolution of Web3 has shifted the focus from hype-driven tokens to real infrastructure projects that improve scalability, decentralization, security, and data availability. As blockchains expand into financial applications, social networks, gaming ecosystems, and AI-driven systems, the demand for more advanced infrastructure grows. Five projects stand out for their transformative impact on Web3 in 2025: Ethereum, Arbitrum, EigenLayer, zkSync, and IPFS. These initiatives address long-standing bottlenecks, high fees, slow throughput, fragile interoperability, and centralized storage. Their innovations allow developers to build fast, secure, censorship-resistant applications that can onboard millions of users. Collectively, they represent the backbone of next-generation Web3. 1. Ethereum: The Execution Layer of Web3 Ethereum continues to serve as the foundation of decentralized applications. As the first smart-contract platform to gain global adoption, it now powers thousands of dApps across DeFi, NFTs, social platforms, and gaming. Post-Merge improvements, especially the shift to proof-of-stake, have drastically cut energy usage and improved network efficiency. The introduction of proto-danksharding (EIP-4844) has reduced data costs for Layer-2s and boosted throughput, laying the groundwork for full sharding. Developers also enjoy a mature toolkit, including Truffle, Hardhat, Foundry, and a vast open-source ecosystem that accelerates experimentation and deployment. Ethereum’s EVM compatibility remains a major advantage. The EVM functions as a universal standard: dozens of chains support it, and developers can deploy smart contracts across chains with minimal changes. This interoperability ensures consistency in tooling, security audits, and user experience. Even with competition from alternative L1s, Ethereum still secures the majority of value in Web3. Its role as the settlement layer backed by billions in staked ETH cements its dominance. The network processes the highest-value transactions and remains the base for leading DeFi protocols like Aave, Uniswap, Maker, and Lido. 2. Arbitrum: Scaling Ethereum for Mass Adoption Layer-2 technologies are essential to scaling Ethereum without sacrificing decentralization. Among them, Arbitrum has emerged as the leading L2 by transaction volume, developer activity, and total value locked. Arbitrum’s core innovation lies in optimistic rollups, which batch thousands of off-chain transactions and settle them on Ethereum. This process reduces gas fees by 10×: 100× while maintaining Ethereum-level security. Over time, upgrades like Arbitrum Nitro have improved execution speed, lowered latency, and enhanced compression. What sets Arbitrum apart is its emphasis on flexibility. Arbitrum Orbit allows teams to launch custom L3 chains with specific configurations for DeFi, gaming, or enterprise applications. This approach unlocks specialized scaling without fragmenting liquidity. The ecosystem has become a magnet for developers, helped by grants and support programs, attracting hundreds of projects. Arbitrum now powers large SocialFi and GameFi communities, offering high throughput with EVM equivalence, meaning developers can migrate from Ethereum seamlessly. As Web3 apps demand millions of daily transactions, Arbitrum has positioned itself as a key infrastructure layer for cost-efficient and secure scaling. 3. EigenLayer: A New Security Marketplace for Web3 Security has always been one of Web3’s most expensive bottlenecks. New chains and protocols traditionally needed their own validator networks and tokenomics to secure operations. EigenLayer disrupts this model through restaking a mechanism that lets users reuse staked ETH to secure additional networks and services. This creates a shared security marketplace. Instead of building from scratch, new protocols can rely on the massive economic weight of Ethereum’s stakers. These external modules, called Actively Validated Services (AVS), include decentralized sequencers, oracles, bridges, data availability layers, and other middleware. The benefits are substantial: Lower bootstrapping costs for new projects Higher yields for stakers through stacked rewards Greater security via Ethereum’s validator set Faster innovation due to modularity  By early 2025, EigenLayer had accumulated more than $12 billion in restaked ETH, making it one of the fastest-growing projects in Web3 infrastructure. The long-term vision is to transform Ethereum’s validator network into a global, programmable security hub. If successful, EigenLayer could redefine how decentralized networks secure themselves and interact with one another. 4. zkSync: Zero-Knowledge Rollups for High-Performance Web3 As Web3 applications become more complex, especially in payments, gaming, and privacy-sensitive finance, developers need faster settlement, lower fees, and stronger cryptographic guarantees. zkSync delivers this through zero-knowledge rollups, which compress thousands of transactions and generate zk-proofs verified directly on Ethereum. The benefits of ZK technology are profound: Speed: Sub-second confirmation times Lower Costs: Dramatically cheaper than L1 Privacy: data can be validated without being revealed Security: proofs ensure correctness by default  zkSync Era is notable for its zkEVM compatibility, enabling developers to port Solidity contracts without rewriting code. The system also supports native account abstraction, allowing user-friendly features like gasless transactions, biometric wallet recovery, and flexible multisig authentication key components for mainstream onboarding. The introduction of hyperchains gives projects the ability to deploy custom ZK-powered chains tailored to AI applications, high-frequency trading, gaming, and enterprise workloads. With the increased focus on ZK technologies across Web3, zkSync sits at the forefront of scalability and privacy breakthroughs. 5. IPFS: The Decentralized Data Layer of Web3 While blockchains secure transactions, Web3 still requires decentralized systems to store data, assets, metadata, and application front-ends. This is where IPFS (InterPlanetary File System) plays a foundational role. Instead of relying on centralized servers or cloud platforms, IPFS uses content-addressed storage, where files are referenced by their unique cryptographic hash. This enables: Permanent, tamper-resistant data storage Censorship resistance through distributed nodes Global content delivery without central points of failure Interoperability with chains via pinned data IPFS is widely used for NFT metadata, decentralized websites, and distributed archives. When paired with storage incentives through networks like Filecoin or Arweave, IPFS becomes the backbone of permanent and censorship-resistant Web3 storage. Platforms like OpenSea, Farcaster, Lens Protocol, and numerous DAOs rely on IPFS to ensure that assets and front-ends remain accessible even if central servers fail. In a Web3 world that prioritizes transparency and permanence, IPFS is irreplaceable. How These Projects Reshape the Web3 Landscape Together, these five projects tackle the blockchain trilemma by specializing in different infrastructure layers: Ethereum: Computation & settlement Arbitrum: Scalability & affordability EigenLayer: Security & trust minimization zkSync: Privacy-preserving high performance IPFS: Decentralized storage  This layered model mirrors the design of the traditional internet, with different tools working together rather than one chain doing everything. Driving Mass Adoption Several trends amplify the importance of these projects: Rising demand for enterprise solutions Increasing complexity of decentralized applications Accelerating AI-Web3 convergence Global movement toward self-custody and censorship resistance  The synergy between L1s, L2s, shared-security layers, and decentralized storage is unlocking trillion-dollar opportunities across finance, gaming, identity, and decentralized social networks. Ongoing Challenges Despite progress, Web3 infrastructure faces hurdles: Quantum computing threats will require post-quantum cryptography. Regulatory uncertainty could shape L2 operations or restaking rules. Interoperability remains fragmented across chains. Data availability is an ongoing challenge for large-scale dApps.  Yet the open-source culture of Web3 continues to drive rapid iteration. New appchains, modular blockchains, and data networks continue to emerge, expanding the possibilities for developers and users alike. The Infrastructure Powerhouses Shaping the Future of Web3 In 2025, Web3 is undergoing a structural transformation. Rather than competing to be “the one chain to rule them all,” leading projects now cooperate through layered architectures. Ethereum provides the secure execution foundation; Arbitrum and zkSync scale its throughput; EigenLayer distributes its economic security; and IPFS stores its data. These five projects collectively enable a more scalable, secure, resilient, and user-friendly Web3. As adoption grows, this infrastructure-first approach will define which networks and applications succeed in the next decade. FAQs Why are infrastructure projects so important for Web3? Infrastructure determines how scalable, secure, and decentralized applications can be. Without strong underlying layers, dApps face high fees, slow transactions, and centralized bottlenecks. Is Ethereum still the dominant platform for Web3 development? Yes. Ethereum remains the leading smart-contract platform due to its developer tools, security, and massive ecosystem. Most L2s, including Arbitrum and zkSync, rely on it for settlement. How does EigenLayer’s restaking change network security? Restaking allows staked ETH to secure additional protocols, creating a shared security model. New projects can launch without building their own validator network from scratch. What makes zkSync different from other Layer-2 solutions? zkSync uses zero-knowledge proofs for near-instant finality, strong security guarantees, and privacy benefits, making it ideal for high-throughput or regulated applications. Why is IPFS essential for Web3 apps? Blockchains cannot store large files. IPFS provides decentralized, content-addressed storage for data, NFTs, frontends, and archives, ensuring permanence and censorship resistance. References Cherryserver: 11 Best Web3 Infrastructure Providers [2025] Metana: 10 Ultimate Open-Source Web3 Projects 2025

What Does dYdX’s First Spot Market Unlock? dYdX Labs has released its first spot trading product, starting with Solana, marking the first time U.S. users can access the exchange's core infrastructure. The addition of spot markets represents a major extension for a platform previously defined by derivatives, with the company describing the release as a “pivot moment” for the project. The exchange, built on its own Cosmos-based appchain, reports more than $1.5 trillion in cumulative volume since 2017. Until now, dYdX’s activity revolved around perpetual futures, which remain off-limits to U.S. traders. By offering Solana spot trading across all supported regions — including the United States — the team has opened a new access point while keeping its derivatives restricted in line with domestic rules. “We're excited to bring dYdX to the United States and provide American traders with access to institutional-grade decentralized trading infrastructure,” President Eddie Zhang said. He added that the rollout reflects changes in the regulatory climate and said the group wants to deliver “deep liquidity, competitive fees, advanced tools, and self-custody principles” as its spot markets expand. Investor Takeaway Spot trading gives dYdX a new entry point into the U.S. market. With perps restricted, spot markets offer a practical foothold while still keeping the platform in compliance. Why Now? A Perp DEX Shakeup Is Reordering Market Share The timing reflects how quickly the perp DEX sector has rearranged itself in 2025. After the 2021 boom faded, dYdX and GMX saw their dominance clipped as newer entrants surged. The resurgence of onchain derivatives this year has been driven largely by Hyperliquid, which pushed volumes to new highs and reignited competition across the field. Aster, backed by YZi Labs, climbed quickly, while Lighter — an Ethereum-based venue that raised $68 million at a $1.5 billion valuation — rolled out its own ETH spot markets earlier this month. Lighter overtook both Hyperliquid and dYdX in November to report the highest monthly volumes, holding that position into December, according to The Block’s data. Perpetuals also crossed a milestone in October, with protocol-level trading volumes topping $1 trillion for the first time. That month saw the sector reach $1.2 trillion, with Hyperliquid contributing $308.5 billion. The shift set the stage for a busier competitive landscape, leaving older platforms searching for new entry points and user bases. How Does Solana Fit Into dYdX’s Expansion Strategy? Solana becomes the first asset listed under dYdX’s new spot framework. The exchange said it selected Solana because it commands strong liquidity across both centralized and decentralized venues and serves a broad mix of retail and institutional activity. By starting with a high-volume asset, dYdX Labs hopes to pull in traders who want access to a self-custodied spot venue with orderbook-style infrastructure. Spot markets also give dYdX a way to broaden usage of its Cosmos appchain beyond perpetual futures. The platform’s architecture supports deep liquidity pools and order matching without relying on Ethereum’s congestion or gas dynamics. Expanding into spot allows dYdX Labs to show that its appchain can support multi-product trading — a critical step as competitors launch their own hybrid models. Investor Takeaway Spot trading widens dYdX’s product set and helps it compete with newer DEXs that already offer a mix of spot and perps. It also strengthens the exchange’s appchain narrative. What Comes Next for dYdX? dYdX Labs said it will expand its spot lineup over time and plans to monitor the U.S. regulatory environment for any opening that could permit decentralized derivatives domestically. For now, perpetual futures remain unavailable to American users, though the team said it is watching both SEC and CFTC actions to determine when such products might be permissible. As part of the launch, dYdX is offering zero-fee trading throughout December to draw in new users. The exchange hopes that traders seeking a venue capable of hosting multiple strategies — while retaining self-custody — may find the new spot markets a compelling entry point. With competition heating up across perp DEXs, the addition of spot trading gives dYdX a broader base to work from. The rollout also restores the exchange’s presence in the U.S., giving it a channel into a market it has been unable to serve for years.

KEY TAKEAWAYS Titanium seed plates are highly resistant to fire, floods, and corrosion. They protect physical durability, but not secrecy; theft remains a major risk. Titanium works best when combined with passphrases, multisig, or SSS. Hardware wallets still require a strong seed backup; titanium enhances this safety. A single titanium plate is a single point of failure; geographical separation helps. Never store digital copies of your seed photos, and scans are major leak risks. Titanium is powerful, but only as part of a layered crypto-security strategy.   When people talk about “cold storage” for crypto, the image that often comes to mind is a tiny hardware wallet tucked away in a safe. But another, quieter guard dog has entered the conversation: metal seed storage, and specifically titanium. Promoted as nearly indestructible, titanium seed plates (from brands like Billfodl, Cryptosteel-style devices, or DIY titanium sheets) promise to survive fires, floods, and time itself.  But is titanium actually the safest way to protect your crypto keys? Short answer: It’s one of the most resilient physical media, but “safest” depends on how you use it, what threats you face, and what trade-offs you accept. In this article, we break down how titanium seed storage works, why it has become so popular, and whether it genuinely provides the strongest protection for your crypto keys. You’ll also see where titanium excels, where it falls short, and how it compares to other security methods. What is Titanium Seed Storage? Titanium seed storage means engraving, stamping, or otherwise etching your wallet’s recovery data, typically a BIP-39 mnemonic phrase or raw private key fragments, into a titanium plate. Unlike paper (which burns, smudges, or decays) or cheap metals that corrode, titanium is highly corrosion-resistant, has a very high melting point, and won’t fail after a flood or rodent encounter. Many commercial products are modular: slotted tiles, stamped letters, or engraved plates that lock together and can be stored in a safe or hidden location. What Titanium Does Well Titanium seed storage has earned a strong reputation for its resilience and long-term reliability. Before looking at alternatives, it’s important to understand the core strengths that make titanium a preferred choice for many crypto holders. Extreme Durability: Titanium withstands heat, water, and most chemical corrosion. In a house fire or flood, a properly stored titanium plate is far more likely to remain readable than paper or a wooden backup. Longevity: Titanium doesn’t degrade the way paper, cardstock, or some alloys do. If you want a record that lasts decades or generations, titanium is a reasonable choice. Physical Tamper-Resistance: It’s not trivial to destroy or alter an engraved titanium seed without obvious signs. This makes covert tampering harder. Offline Storage: Like any physical backup, a titanium plate is offline and immune to malware, keyloggers, or network attacks that target hot storage and digital backups. Where Titanium Falls Short Despite its impressive strengths, titanium storage is not a complete solution on its own. It protects the seed physically, but it cannot mitigate every type of risk. These limitations are important to consider before relying solely on metal storage. Exposure Risk Remains: Physical durability doesn’t solve the fundamental problem: if someone finds your seed, they can spend your funds. Titanium makes the backup survive disasters; it does not make it secret. Theft and unauthorized access are still very real threats. Human Error: Mistakes during engraving (typos, missed words, wrong order) are catastrophic. Titanium’s permanence magnifies human error: unlike a paper note you can correct, an engraved plate is fixed. Cost and Friction: Quality titanium solutions cost more than paper or stainless steel. They also add friction: engraving tools, practice, and careful handling are needed as people sometimes cut corners and create insecure backups as a result. False Sense of Security: Believing titanium equals safety can lead to poor operational security (writing passphrases next to the plate, photographing it, or storing it in an easy-to-find place). How Titanium Stacks Up Against Other Backup Methods Titanium isn’t the only way to secure recovery seeds, and each method comes with its own advantages and weaknesses. Understanding how these alternatives stack up helps you decide whether titanium is truly the best fit for your threat model. Paper: Cheap and readable, but vulnerable to fire, water, mold, and decay. Best only as a temporary or redundant measure. Stainless Steel: Good and cheaper than titanium, but can corrode over long time spans, especially in salty or acidic environments. Hardware Wallets: Store keys in secure chips and require PINs/seed protection. They protect against many digital attacks but are less resilient to physical destruction; their seed should still be backed up (often on metal). Multisignature (Multisig): Spreads risk across multiple keys held in separate places. A powerful approach: stealing one backup isn’t enough. Multisig shifts the problem from “single backup survival” to secure distribution and redundancy. Shamir’s Secret Sharing (SSS): Splits a seed into multiple shares so only a threshold subset reconstructs the key. Combined with metal plates, SSS gives both physical resilience and improved secrecy. Practical Threats to Consider Even the toughest backup method is only effective if it addresses the real-world risks you face. These are the core threats every crypto holder should evaluate before choosing a storage strategy. Accidental Destruction: Fires, floods, corrosion: titanium excels here. Physical Theft or Coercion: Titanium doesn’t help unless combined with secure storage and splitting techniques. Insider Threats or Legal Seizure: If someone with legal authority or a burglar obtains the plate, titanium can’t stop them. Digital Attacks: Titanium is irrelevant against malware; it’s a physical-only protection. Best Practices if You Choose Titanium If titanium becomes part of your security plan, applying strong operational habits ensures you get the full benefit of its durability without exposing new risks. These practices make your setup both safer and more resilient. Don’t Store in one Place: Use geographic separation (home safe + bank safe deposit box) or split using SSS. If you use two plates, ensure each alone is useless. Use a Passphrase (BIP-39 “25th word”): Keep the mnemonic on metal and conceal/store the passphrase separately. Without the passphrase, a stolen plate is less useful. Test your Process: Before relying on a titanium plate, practice reconstructing a wallet from an engraved test seed. Confirm readability after engraving and that the words align with BIP-39 wordlists. Consider Tamper-Evident Storage: Choose safes or sealed containers that show clear signs if opened, and avoid obvious hiding spots. Avoid Digital Copies: Don’t photograph or scan the seed. Digital images leak and are easily exfiltrated. Use Multisig for Large Holdings: For very large sums, distribute control across multiple keys and custodians. Titanium plates can store each key share. Label Subtly: Avoid labels like “crypto seed.” Use neutral labels or concealment strategies that won’t attract attention if discovered. Consider Legal & Inheritance Planning: Titanium ensures the seed lasts, but ensure trusted heirs can access funds after you’re gone, consider legal frameworks or a sealed envelope with instructions stored with an attorney. When Titanium is an Excellent Fit and When it is Not Titanium seed storage is a strong choice if your primary worry is environmental destruction (fire, flood, pests) and you want a long-lasting, offline backup. It’s especially useful paired with other practices: passphrases, multisig, or secret-sharing. But if your main concern is theft or legal coercion, titanium alone is not the answer. Likewise, for casual users with tiny balances, the cost and complexity might be overkill; a hardware wallet plus a sealed paper backup stored safely could be sufficient. Final Recommendation Titanium seed storage is one of the most durable and disaster-resistant ways to preserve your recovery data, but “safest” depends on the full security model, not just media toughness. Treat titanium as a powerful component in a layered defense: Use titanium (or high-quality stainless steel) to guard against loss from disasters. Add secrecy: passphrases, splitting, or multisig to reduce theft risk. Harden procedures: test recovery, avoid digital copies, and use tamper-evident storage. Think about distribution and inheritance ahead of time. When you combine titanium’s resilience with thoughtful operational security and redundancy, you get a backup system that protects against the widest range of real-world failures. Alone, it’s durable, but not invincible. So yes: titanium can be the safest way to protect your crypto keys if it’s used as part of a deliberate, layered plan that anticipates both environmental and human threats. Titanium Is Strong, but Layered Security Wins Titanium offers exceptional durability and should be strongly considered for anyone serious about surviving disasters, long-term wear, or unpredictable environmental threats. But the true “safest” strategy marries titanium’s physical resilience with secrecy tools like passphrases or Shamir’s Secret Sharing, redundancy through geographic separation or multisig setups, and strong operational habits that prevent exposure. Titanium solves the durability problem, but durability without secrecy is only half the job; combining both creates a far more resilient, theft-resistant framework. When layered correctly, titanium becomes not just a backup medium, but a powerful foundation in a broader, well-designed crypto-security system. FAQs Is titanium the safest way to store my crypto keys? It’s one of the most durable physical options, but true safety depends on secrecy, distribution, and operational security. Can a titanium seed plate survive a house fire? Yes. Titanium withstands extreme heat far better than paper or lower-grade metals. What if someone steals my titanium plate? They can access your funds unless you also use a passphrase or split-key method. Is titanium better than stainless steel? Titanium is more corrosion-resistant and has a higher melting point, making it more reliable long-term. Do I still need a hardware wallet if I use titanium storage? Yes. Titanium protects the backup seed; a hardware wallet protects the key during everyday use. References Coincodex: 16 Best Metal Crypto Wallets in 2025: Top-Rated Options for Secure Seed Phrase Storage  Titek: Titanium Qualities Bitgear: How to Securely Store Your Hardware Wallet Seed

KEY TAKEAWAYS Crypto enables real-world assets to be represented as blockchain-based tokens. Tokenized securities increase liquidity by allowing fractional ownership. Smart contracts automate compliance, dividends, and corporate actions. Blockchain ensures transparent, auditable, and tamper-proof records. Tokenization reduces costs and speeds up settlement compared to traditional markets. Global investor access becomes possible, breaking geographic and capital barriers. Regulatory compliance remains crucial for safe adoption of tokenized securities.   One of the most transformative innovations blockchain has unlocked is the tokenization of securities, the process of converting ownership rights in traditional financial assets into digital tokens that exist and move on a blockchain. This shift is reshaping how investors access capital markets, how companies raise funds, and how financial instruments are traded globally. Tokenization isn’t simply a technical upgrade. It’s a re-engineering of financial infrastructure that promises greater efficiency, liquidity, and transparency. But how exactly does crypto technology make this possible? To understand that, we need to explore the underlying mechanics of blockchain, smart contracts, digital asset custody, and regulatory frameworks that bring tokenized securities to life. What Is Security Tokenization? Security tokenization is the process of representing real-world financial assets, such as stocks, bonds, real estate shares, treasury bills, and private equity, as blockchain-based digital tokens. These tokens aren’t new cryptocurrencies; they are regulated instruments that derive value from the underlying asset. A tokenized security typically includes: Ownership rights or claims Dividends, interest payments, or profit participation Voting rights, depending on the structure Legal enforceability under securities law Blockchain acts as the ledger, recording issuance, transfers, and ownership in a tamper-proof manner. How Crypto Technology Makes Tokenization Possible Blockchain enables tokenization because it provides an immutable, distributed ledger that doesn’t rely on centralized record-keepers. Instead of brokers, custodians, and registrars maintaining separate databases, blockchain creates a single shared source of truth. Every transaction, whether buying, selling, or transferring ownership, is recorded transparently and permanently. Smart contracts are the second critical ingredient. These programmable agreements enforce compliance requirements automatically. For example, they can prevent tokens from being transferred to unverified investors or automatically process dividend payouts. This removes the need for multiple intermediaries and reduces administrative friction dramatically. Another key enabler is cryptographic security. Control over tokenized securities depends on private keys, which authorize transfers securely. This method makes unauthorized access extremely difficult, provided keys are stored correctly. Together, blockchain, smart contracts, and cryptography form the foundation of tokenized finance. Fractional Ownership and 24/7 Market Access One of the most transformative aspects of tokenization is its ability to split traditionally illiquid assets into smaller, investable fractions. Instead of buying an entire commercial building, investors can purchase tiny digital shares that represent ownership in it. Blockchain’s divisibility makes this process efficient and cost-effective. Additionally, blockchain networks operate continuously. Unlike traditional markets with fixed trading windows, tokenized securities can move globally at any hour. This opens doors for international participation and creates a more flexible, dynamic marketplace where liquidity can emerge around the clock. Key Benefits of Tokenizing Securities Tokenization has a number of structural benefits that affect issuers, investors, and financial middlemen. These benefits are more than just easy; they change how ownership, compliance, and market participation work in modern finance. Increased Liquidity One of the best things about tokenisation is that it can make markets that are usually illiquid more liquid. Commercial real estate, fine art, rare collectibles, and private company shares are examples of assets that are often hard to sell because they have long holding periods and few buyers.  It's much easier to trade these assets when they are shown as fractional digital tokens. Investors don't have to buy or sell an entire asset anymore; they can just buy small, cheap parts of it. This model of fractional ownership makes market transactions go more smoothly and opens up more opportunities for people to participate. So, assets that used to take a long time to negotiate or sell can now move quickly through secondary markets. Lower Costs and Faster Settlement Tokenization cuts down on a lot of the extra work that comes with running traditional financial markets. Blockchain is a single source of truth, so brokers, clearing houses, and manual reconciliation teams no longer need to check or process transactions.  This infrastructure lets transactions settle almost right away (T+0) and gets rid of the multi-day clearing cycles that older systems have. Issuers get more than just speed; they also get lower transaction fees, automated back-office workflows, and easier compliance processes. These efficiencies mean lower costs and easier onboarding for investors for companies that are raising money. Broader Investor Participation By breaking down assets into smaller, affordable digital units, tokenization expands access to markets that were historically limited to institutional investors or high-net-worth individuals. A retail investor who previously needed tens or hundreds of thousands of dollars to enter a private equity deal or purchase fractional real estate can now participate with far smaller amounts.  Tokenization also eliminates many geographic barriers. Investors from around the world can buy compliant tokenized assets without needing to navigate layers of custodianship or country-specific financial gatekeepers. The result is a more inclusive financial ecosystem where capital flows more freely, and opportunities are evenly distributed. Transparent Ownership and Auditable Records Because all token transfers occur on a public or permissioned blockchain, ownership becomes fully transparent and verifiable. This transparency drastically reduces the likelihood of ownership disputes, inconsistent recordkeeping, or fraudulent transfers.  Auditors, regulators, and compliance teams can track asset movements through blockchain explorers, enabling a more efficient oversight process. In environments where trust is critical, such as securities issuance and secondary trading, this level of clarity strengthens market integrity and protects investors. It also supports regulatory alignment by giving authorities real-time visibility into asset flows when needed. Programmable Securities Tokenization makes it possible to make programmable securities that can automatically follow rules and do things through smart contracts. These built-in features change the way issuers run their businesses. Timed lock-ups, regulatory whitelists, automated dividend payments, and instant interest distributions can all be done without any help from people.  Voting, managing share classes, and checking for compliance are all corporate actions that become easy and clear. This automation makes things easier for investors and ensures that payouts are made on time and accurately. It gives issuers a better, easier way to handle investors. Real-World Use Cases of Tokenization Tokenization is no longer just an idea; it's already changing a lot of different fields. Blockchain is being used by real estate platforms to issue fractionalised property shares that give token holders rental income. Private companies, which used to have trouble with liquidity, are now allowing ownership stakes to be traded earlier without going public. Governments and organisations are also trying out blockchain-based bonds, which settle faster and are cheaper to manage. Even fund managers are looking into tokenised versions of ETFs and investment pools. These would make onboarding easier and returns easier to distribute. These early adopters show how tokenisation can bring different parts of finance up to date. Challenges Holding Tokenized Securities Back Despite the promise, several hurdles slow broader adoption. 1. Regulatory Uncertainty Different countries classify tokenized securities differently, creating fragmented rules. Some require licensed custodians; others require on-chain KYC. This complexity slows global scaling. 2. Custody Complications Institutional investors need compliant custody solutions. Securely storing private keys for multi-million-dollar tokenized assets requires sophisticated infrastructure. 3. Lack of Standards Different blockchains use different token formats (ERC-1400, ERC-20 variants, bespoke systems). The lack of standardization makes interoperability difficult. 4. Market Fragmentation Tokenized assets exist across multiple chains and regulated platforms that cannot communicate easily. This limits liquidity aggregation. 5. Education and Adoption Barriers Many issuers and investors are still learning how tokenized securities work, which delays mainstream use. The Future of Tokenized Securities As regulatory frameworks evolve and institutions adopt blockchain infrastructure, tokenization is expected to reshape capital markets dramatically. We are likely to see: Tokenized versions of major equities Government-issued tokenized treasury markets Integrated exchange networks across blockchains Instant cross-border settlements Increased use of AI-driven compliance via smart contracts In the long run, tokenization will not replace traditional securities; it will improve them by offering more flexibility, faster settlement, and more inclusive access. Crypto-Powered Tokenization Is Reshaping Financial Markets Tokenization represents a powerful convergence of traditional financial structures and blockchain innovation. Crypto provides the underlying technology for decentralized ledgers, smart contracts, and cryptographic security that makes it possible to convert real-world securities into efficient, programmable digital tokens.  While regulatory refinement and improved infrastructure are still needed, tokenization is already demonstrating its ability to increase liquidity, improve transparency, and lower operational costs. As adoption widens, it will redefine how assets are created, traded, and owned, marking a significant evolution in global finance. FAQs What is tokenized security? A tokenized security is a digital representation of a traditional asset, like stocks or bonds, on a blockchain. How does crypto make tokenization possible? Blockchain provides a trustless ledger, while smart contracts automate compliance, ownership, and payouts. Can tokenized securities be fractionally owned? Yes, assets can be divided into small digital units, allowing more investors to participate. Are tokenized securities safer than traditional securities? They offer transparent, immutable records and automated compliance, but still require proper custody and regulatory adherence. Which assets can be tokenized? Stocks, bonds, private equity, real estate, and even collectibles can be tokenized for more efficient trading. References Nansen: Tokenized Securities Explained: What They Are and Why They Matter Innreg: Tokenized Securities Explained: Examples and Regulation Gemini: What Is Tokenization in Blockchain?

What Is Stripe Gaining From Valora’s Team? Stripe has acquired the team behind Valora, the mobile-first crypto wallet project built around stablecoin transfers on the Celo network. Valora founder Jackie Bona confirmed the move on Wednesday, saying the group would join Stripe “to pursue the mission of expanding global access to financial systems.” She did not disclose headcount or the terms of the deal. Valora was created in 2021 after spinning out from Celo’s core development studio, cLabs. The app was known for focusing on simple, peer-to-peer payments using stablecoins on the Celo blockchain. According to Bona, the acquisition does not include Valora’s intellectual property. The app will return to cLabs, which will oversee its continued development. The structure leaves Stripe with talent but not the product, while Valora’s user-facing technology goes back to its original ecosystem. The arrangement reflects Stripe’s growing interest in stablecoin infrastructure rather than consumer wallets. Investor Takeaway Stripe’s focus is on stablecoin rails, not running a retail wallet. Acquiring Valora’s team strengthens its internal crypto division while cLabs regains control of the app. Why Is Stripe Accelerating Its Stablecoin Strategy? Stripe has leaned into stablecoins over the past year, culminating in its purchase of crypto infrastructure firm Bridge in late October 2024. Bridge became the foundation for Stripe’s Open Issuance platform, which helps companies build custom stablecoins. Stripe also announced its involvement in Tempo, a payments-focused Layer 1 blockchain. The company’s stablecoin division now spans issuance, management and custody services. It also aligns with Stripe’s ongoing pursuit of a national bank charter in the United States, which would put its stablecoin efforts under a regulated banking structure. Stripe co-founders Patrick and John Collison said in their annual letter that stablecoins represent an “improvement” on the “basic useability of money,” noting that the company spent years testing crypto payment models after discontinuing bitcoin support in 2018. Stablecoins, they wrote, finally reached a point where they could support reliable payment flows. Earlier this year, Stripe added another piece to the puzzle when it acquired Privy, a crypto wallet firm. Combined with the Valora acqui-hire, the company now has a larger crypto engineering base as it builds out a full stablecoin stack. Where Does This Leave Valora and the Celo Ecosystem? Valora returns to cLabs after four years as an independent project. Bona confirmed that the app “will continue to live on by returning to its original home at cLabs, which will steward its future development.” That keeps the product aligned with the Celo ecosystem as the blockchain transitions from its earlier Layer 1 design to its new role as an Ethereum Layer 2. Valora had established itself as a peer-to-peer wallet focused on ease of use, aiming to make sending crypto “as easy as a text message.” It raised $20 million from investors including Andreessen Horowitz and Polychain Capital. The project also attracted backing from public figures via a16z’s Cultural Leadership Fund, including Carmelo Anthony, Kevin Durant, Casey Neistat, Nas and Sean “Diddy” Combs. The app has been active in emerging markets. Partnerships with M-Pesa supported expansion in parts of Africa, while work with Tether aimed to widen stablecoin accessibility. With cLabs regaining ownership, future development remains tied to the broader Celo roadmap. Investor Takeaway Valora’s tech stays inside the Celo ecosystem, while its team strengthens Stripe’s stablecoin engineering. Both sides get what they need without merging products. How Does This Fit Into Stripe’s Product Roadmap? Stripe’s recent activity points to a multi-pronged approach to stablecoins: build issuance tools, run custodial and operational systems, and integrate stablecoins into merchant-facing flows. The Valora team adds experience in mobile-first wallets and frictionless crypto payments, which fits Stripe’s broader push to make stablecoin transactions behave like any other digital payment. Bona said Stripe “shares our conviction that stablecoins and crypto can dramatically expand who gets to participate in the global economy.” She also noted shared values on user access and product impact. That alignment suggests Stripe is pushing deeper into global payment channels where stablecoins can support remittances, settlement and cross-border infrastructure. Unlike Stripe’s aborted bitcoin experiment in 2018, this iteration is built around stablecoins that behave like predictable settlement assets rather than volatile tokens. Combined with Open Issuance and Tempo, Stripe now controls more of the stablecoin lifecycle — from creation to distribution to merchant settlement. What Comes Next? Stripe has not detailed how the Valora team will be integrated or what products they will work on. But given the company’s recent acquisitions and public comments, the team is expected to support its stablecoin division rather than consumer-facing wallet tools. Meanwhile, Valora continues as an app within cLabs’ orbit, tied to Celo’s planned expansion as an Ethereum Layer 2. The move splits the original project across two efforts: Stripe gains engineering talent, and cLabs retains the product and user base.

KEY TAKEAWAYS Wash-sale rules currently apply only to stocks and securities, not crypto. Crypto investors can sell at a loss and immediately repurchase without losing deductions. Tax-loss harvesting is easier for crypto due to the absence of wash-sale restrictions. Accurate record-keeping across exchanges and wallets is essential. Investors must track short-term vs. long-term gains for correct tax reporting. Self-imposed “virtual 30-day” strategies can prepare for potential future rules. Professional tax software and advisors help manage complex crypto transactions.   Cryptocurrency investing has surged in popularity over the last decade, offering new opportunities for both individual and institutional investors. With these opportunities, however, comes the complex landscape of tax obligations. One of the tax concepts that frequently confuses investors is the wash-sale rule, a provision that prevents certain tax benefits from short-term losses when selling securities. In this article, we’ll help you understand how or if this rule applies to crypto, which is crucial for minimizing unexpected tax liabilities and ensuring compliance with the IRS. What Are Wash-Sale Rules? Wash-sale rules were introduced under the U.S. Internal Revenue Code primarily to prevent investors from claiming tax deductions for losses on securities if they repurchase the same or substantially identical security within a short period. Specifically, the IRS disallows a tax loss if an investor sells a stock at a loss and buys the same or a “substantially identical” security within 30 days before or after the sale. For traditional stocks and bonds, this rule is designed to prevent tax abuse. Without it, an investor could sell a losing stock at the end of the year, immediately repurchase it, and deduct the loss while still maintaining the same market position. The wash-sale rule ensures that tax losses reflect actual economic loss rather than a mere timing maneuver. Do Wash-Sale Rules Apply to Cryptocurrency? Cryptocurrencies like Bitcoin, Ethereum, and other altcoins are currently treated as property, not securities, under IRS guidance (IRS Notice 2014-21). This distinction is crucial because the wash-sale rules specifically reference stocks and securities. As a result, many tax experts and investors currently interpret that wash-sale rules do not apply to crypto transactions. This means that, theoretically, crypto investors can sell a coin at a loss and immediately repurchase it or buy a different coin without disqualifying the tax loss. For example, if an investor sells Bitcoin at a $5,000 loss and buys it back the next day, the loss remains deductible on their tax return under current guidance. Practical Implications for Crypto Traders Understanding how wash-sale rules or the lack thereof apply to crypto is more than a legal detail; it directly affects trading strategies, tax planning, and portfolio management. These practical considerations help investors make informed decisions while optimizing their tax outcomes. 1. Harvesting Tax Losses Investors may carry out tax-loss harvesting without the wash-sale rule because crypto is treated like property. Tax-loss harvesting is when you sell a cryptocurrency at a loss to make up for other capital gains. Crypto traders can buy back the same cryptocurrency right away without losing their deduction because wash-sale rules don't apply right now. This can be especially useful at the end of the tax year when investors are seeking to reduce taxable gains from other investments, including stocks, bonds, or other cryptocurrencies. 2. Managing Volatility Crypto markets are highly volatile, which often leads to significant short-term gains and losses. Investors can use the lack of wash-sale rules to their advantage by selling during a dip to take losses and then buying back right away to stay in the market. This is a big difference from the stock market, where wash-sale rules make you wait 30 days. 3. Portfolio Rebalancing The lack of wash-sale restrictions makes it easier for investors to rebalance their holdings more often in portfolios that include a lot of different cryptocurrencies. You can sell one asset to take a loss and then put the money into another token or even back into the same token without having to pay taxes. This capability is particularly valuable for active traders managing complex crypto portfolios. Potential Future Changes and IRS Enforcement While current IRS guidance does not extend wash-sale rules to cryptocurrencies, this may change in the future. Lawmakers have discussed expanding wash-sale rules to include cryptocurrencies to prevent aggressive tax-loss harvesting. The Infrastructure Investment and Jobs Act of 2021 increased reporting requirements for digital asset transactions, signaling that regulators are closely monitoring crypto taxation. Investors should stay aware of updates, as any retroactive application of wash-sale rules or new regulations could affect previously claimed losses. Maintaining detailed transaction records, including dates, amounts, and types of cryptocurrency, is critical for compliance and audit preparedness. Key Considerations for Crypto Investors Even without wash-sale rules applying, crypto investors must navigate tax obligations carefully. Several factors can affect how gains and losses are calculated, reported, and optimized. Record-Keeping Proper documentation is essential for crypto investors. Each transaction should be tracked for cost basis, sale price, and realized gains or losses. Tools like crypto tax software can automate much of this process, especially for active traders managing dozens or hundreds of trades. Identifying Short-Term vs. Long-Term Gains Wash-sale rules in traditional markets also interact with short-term and long-term capital gains. Even though wash-sale rules currently don’t apply to crypto, investors must still distinguish between short-term and long-term gains for proper reporting. Assets held less than a year are taxed at higher short-term rates, while those held longer qualify for lower long-term rates. Cross-Platform Trading Many crypto investors trade across multiple exchanges. Without wash-sale restrictions, it is easier to take advantage of tax-loss harvesting across different platforms. However, accurate tracking becomes more complex when assets move between wallets and exchanges, making software tools or professional tax advisors invaluable. Wash-Sale-Like Strategies Some investors choose to self-impose a “virtual 30-day rule” for crypto to align with their stock market practices. This conservative approach can protect against future regulatory changes, ensuring that if wash-sale rules are ever extended to crypto, previous transactions would remain compliant. Challenges and Risks Despite the lack of wash-sale restrictions, crypto investors face unique challenges, from high transaction volume to forks, airdrops, and cross-border taxation. High Transaction Volume: Frequent trading generates many taxable events, increasing complexity. Forks and Airdrops: Receiving new tokens from forks or promotional airdrops can create taxable income that complicates tax-loss harvesting. Valuation Issues: Cryptocurrency prices can fluctuate rapidly, making accurate reporting essential to avoid errors. Cross-Border Taxation: Investors in different countries must navigate local tax rules, which may have their own restrictions or definitions of wash sales. Understanding these risks and maintaining precise records is crucial to staying compliant while optimizing tax outcomes. Best Practices for Crypto Investors Adopting structured strategies, reliable tools, and professional guidance helps investors stay compliant, optimize tax outcomes, and manage the complexities of crypto taxation. Use Specialized Tax Software: Platforms like CoinTracker, Koinly, and TokenTax can track trades, calculate gains/losses, and prepare tax reports. Keep Exchange Records: Always export transaction histories, including wallets outside traditional exchanges. Separate Investment Strategies: Maintain a distinction between short-term trading and long-term holding strategies to simplify reporting. Consult a Tax Professional: Crypto tax regulations are complex and evolving; professional guidance can reduce errors and optimize strategies Monitor Regulatory Updates: Stay informed about potential changes to IRS rules, including any expansion of wash-sale-like provisions to crypto. Navigating Crypto Taxes in a Wash-Sale-Free Landscape Currently, wash-sale rules do not apply to cryptocurrencies, offering investors flexibility to sell at a loss and immediately repurchase the same coin. This opens opportunities for strategic tax-loss harvesting, portfolio rebalancing, and maintaining market exposure in volatile conditions. However, the evolving regulatory landscape requires investors to be diligent with record-keeping, reporting, and strategic planning.  By understanding how crypto is treated under existing tax law and preparing for potential changes, investors can minimize liabilities while leveraging the unique advantages of digital assets in a wash-sale-free environment. FAQs Do wash-sale rules apply to cryptocurrency? No. Cryptocurrencies are treated as property, so current IRS wash-sale rules do not apply. Can I immediately repurchase a cryptocurrency after selling at a loss? Yes. Unlike stocks, you can repurchase the same crypto without disqualifying the tax loss. How should I track crypto transactions for tax purposes? Maintain detailed records of cost basis, sale price, date, and wallet/exchange history; crypto tax software can automate this. Should I be concerned about future wash-sale rules for crypto? Possibly. Some investors adopt a “virtual 30-day” waiting period to stay compliant if rules change. What tax challenges do crypto investors face besides wash-sale rules? High trading volume, forks, airdrops, valuation fluctuations, and cross-border taxation are common challenges. References Coinledger: Crypto Wash Sale Rule: Tax Savings 2025 Koinly: What Are The IRS Crypto Wash Sale Rules? Blockpit: Explaining the Wash Sale Rule for Crypto [2025]

What Makes Galaxy’s New Debt Issuance Different? Galaxy Digital has completed a tokenized commercial paper issuance arranged by JPMorgan, marking one of the earliest U.S. debt transactions executed on a public blockchain. The deal introduces the USCP token — a Solana-based representation of Galaxy’s short-term corporate debt — and brings established financial players into an on-chain funding process. Coinbase and Franklin Templeton purchased Galaxy’s newly issued debt, with Coinbase also providing custody and wallet services for the USCP token. JPMorgan handled the structure of the offering, describing the transaction as a test case for how capital-market instruments can function on programmable, public infrastructure. The firms did not disclose the size or terms of the issuance. Both issuance and redemption will settle in USDC, giving the deal a fully digital lifecycle from creation to repayment. “Today’s transaction is an important step toward understanding the role blockchain will play in the future of financial markets,” said JPMorgan Head of Markets Digital Assets Scott Lucas. “This trade demonstrates institutional appetite for digital assets and our capability to securely bring new instruments on-chain using Solana.” Investor Takeaway Institutional buyers are now purchasing tokenized corporate debt issued directly on public chains. This is a notable shift from small pilots toward real funding operations with regulated firms involved at every step. How Does the USCP Token Work? The USCP token is a blockchain-native format of Galaxy’s short-term corporate debt created by JPMorgan to support the issuance. The structure lets Galaxy raise capital through a token instead of a conventional paper certificate, while still fitting into corporate debt frameworks recognized by institutions. Settlement in USDC eliminates the need for conventional clearing channels, making the entire flow — token creation, distribution, custody and repayment — digital. Coinbase’s role covers private-key custody and the on- and off-ramps for USDC, giving institutional holders direct exposure to a money-market-like instrument without leaving regulated environments. Galaxy said the format helps expand its short-term funding options and could attract more institutional buyers as tokenized debt markets grow. “The on-chain USCP format strengthens the firm’s short-term funding capabilities and opens access to a growing base of institutional investors incorporating blockchain-based money-market instruments into their portfolios,” the companies wrote. Galaxy’s Global Head of Trading Jason Urban added: “This issuance is a clear example of how public blockchains can improve the way capital markets operate. By bringing our first commercial paper offering on-chain and helping structure one of the earliest U.S. transactions of its kind, we’re putting into practice the model we’ve long believed in: open, programmable infrastructure that supports institutional-grade financial products.” Why Are Major Institutions Testing Tokenized Debt? Tokenization experiments have accelerated as firms look for ways to reduce settlement friction and create instruments that move natively on-chain. Franklin Templeton has already grown one of the largest on-chain portfolios of U.S. government securities, while other financial groups are issuing digital bonds and commercial paper through their own blockchain programs. Earlier this year, B2C2 issued the first fully on-chain corporate bond on Ethereum. Singapore’s Oversea-Chinese Banking Corp set up a $1 billion digital U.S. commercial paper program through JPMorgan’s Digital Debt Service. Societe Generale completed a digital bond issuance in the U.S. on Broadridge’s platform using the Canton blockchain. Guggenheim Treasury Services has experimented with issuing commercial paper on Ethereum and the XRP Ledger, and DBS has used Ethereum for structured notes. These pilots vary in size, but the direction is clear: more issuers are releasing debt instruments directly on blockchains rather than through digitized versions of traditional certificates. How Does Galaxy’s Approach Fit Into Its Broader On-Chain Strategy? Galaxy has been testing on-chain corporate workflows for several years. Earlier in 2025, the company issued tokenized representations of its SEC-registered stock on Solana, giving shareholders blockchain-based versions of their equity. The firm is also one of three backers of Forward Industries (FORD), which operates the largest Solana treasury and is developing new financial mechanisms for tokenized assets. The commercial paper issuance adds another layer by extending these experiments to treasury operations and short-term funding. While Galaxy has not said how often it plans to issue tokenized debt, the firm’s work with JPMorgan, Coinbase and Franklin Templeton suggests that the infrastructure and investor base are already in place for repeat offerings. Whether tokenized commercial paper becomes a mainstream funding channel will depend on regulatory alignment, investor demand and settlement reliability. For now, Galaxy’s deal shows that multiple regulated institutions are willing to handle, custody and purchase Solana-based debt instruments — something virtually unheard of just a year ago.

What Is Klarna Planning With Its New Crypto Wallet Initiative? Klarna is exploring the development of a simple crypto wallet through a new partnership with Privy, the wallet infrastructure platform owned by Stripe. The project follows last month’s reveal of KlarnaUSD, a U.S. dollar-backed stablecoin issued on Tempo — the payments-focused blockchain incubated by Stripe and Paradigm. Klarna said the work remains in the research phase and any launch will depend on regulatory approvals in the markets where it operates. The buy now pay later firm framed the collaboration as part of its broader effort to test how digital assets could fit into its product suite. Klarna already reaches tens of millions of users through its payments and banking services, and it is examining whether a streamlined crypto wallet could serve people who want an easier way to hold or transact digital assets. “Millions already trust Klarna to help them manage everyday spending, saving and shopping,” CEO Sebastian Siemiatkowski said. He argued that the company is “in a unique position to bring crypto into the financial lives of normal people, not just early adopters.” Investor Takeaway Klarna’s wallet work is exploratory but notable: the firm has scale, a stablecoin in testing, and direct access to mainstream consumers — a combination few fintechs possess. How Does Privy Fit Into Klarna’s Crypto Roadmap? Privy provides the infrastructure that lets apps embed wallet capabilities without asking users to manage private keys directly. The firm says it supports over 100 million accounts and works with 1,500 developers, including OpenSea and Hyperliquid. Its technology underpins billions of dollars in stablecoin and crypto transactions each month. Privy CEO Henri Stern said the company wants to be “the backbone for any business that wants to harness the exciting capabilities crypto and stablecoins offer,” and described the Klarna partnership as part of its expansion into large-scale consumer platforms. For Klarna, integrating Privy offers a way to test wallet designs that feel familiar to mainstream users while keeping the technical complexity in the background. The firm stressed that the initiative is not tied to a product release timeline and remains an experiment for now. Why Is Klarna’s Stablecoin Launch Relevant to This Move? The wallet exploration comes on the heels of KlarnaUSD — the company’s new stablecoin pegged to the U.S. dollar and issued via Bridge’s Open Issuance tooling. The token currently runs on Tempo’s testnet and is expected to reach mainnet in 2026. Klarna has said the stablecoin is intended to reduce cross-border payment costs, which are estimated at roughly $120 billion per year worldwide. “Crypto is finally at a stage where it is fast, low-cost, secure, and built for scale,” Siemiatkowski said when announcing the stablecoin last month. Klarna serves 114 million customers and processes $112 billion in annual gross merchandise volume — giving it a user base far larger than most crypto-native platforms. Tempo itself is gaining traction as a payments chain, having lined up design partners such as Mastercard, UBS, and prediction market platform Kalshi. Its testnet recently launched, offering a sandbox for fintechs wanting to experiment with asset issuance and payment settlement. Investor Takeaway Klarna entering the stablecoin space is a sharp turn from its earlier skepticism, and the firm’s scale makes it one of the most consequential fintechs to test on-chain payments. Is Klarna Making a Larger Crypto Pivot? The company has shifted from years of crypto caution to a more active role. Siemiatkowski was once openly skeptical, but now says the sector’s infrastructure has matured enough for Klarna to explore products that connect digital assets with consumer payments. Even so, Klarna stressed that the wallet project is an R&D exercise, not a market launch plan. Any decision to release a wallet or related features would require regulatory approval in each jurisdiction where Klarna operates. With fintech oversight tightening across regions — particularly in Europe and the U.S. — Klarna said it must map each step to relevant licensing frameworks. The firm also hinted at more crypto-related developments coming soon, noting in its blog post that another update is expected “in a week or so.” While the company did not disclose details, the timing suggests Klarna is preparing a phased rollout of on-chain tools tied to its Tempo integration. What Comes Next? Klarna will continue prototyping wallet designs with Privy while its stablecoin remains in testing. Any final features will need to meet both Klarna’s internal risk standards and the regulatory requirements in its key markets. For now, the company is using its wallet experiment to assess what a simplified crypto experience could look like for mainstream users who are less familiar with private keys, seed phrases or decentralized apps. Whether Klarna eventually releases a wallet will depend on how regulators treat custody, stablecoin activity and embedded crypto features inside large consumer platforms. But Klarna’s entrance into this area — even cautiously — reflects how major fintechs are starting to treat on-chain rails as practical payment infrastructure rather than fringe technology.

What Does the Revolut–Trust Wallet Integration Offer? Trust Wallet, the self-custody wallet owned by Binance co-founder Changpeng “CZ” Zhao, has added Revolut as a direct on-ramp, giving users across Europe a new way to buy crypto with no additional Revolut fees. The integration allows purchases of Bitcoin, Ether and Solana starting from 10 euros and up to 23,000 euros per transaction and per day. Trust Wallet says the feature is designed to speed up access to crypto while keeping users in full control of their assets. Revolut’s involvement adds a major neobank to Trust Wallet’s growing roster of on-ramps. The fintech giant serves more than 65 million verified users and recently received approval from the Cyprus Securities and Exchange Commission to offer crypto services across 30 European Economic Area countries under the EU’s MiCA framework. Trust Wallet CEO Eowyn Chen said the partnership gives European users a smoother path into self-custody. “Partnering with Revolut, one of Europe’s largest neobanks with over 65 million verified users, allows Trust Wallet to offer a seamless and fee-efficient way for users to fund their wallets and access crypto,” Chen said. “For our users, it means faster onboarding, zero extra Revolut fees, and instant access to top cryptocurrencies like BTC, ETH, SOL, USDC, and USDT, all while maintaining full control of their assets.” Investor Takeaway Revolut brings a large European user base into Trust Wallet’s ecosystem. Zero-fee on-ramping strengthens self-custody adoption and gives traders a cheaper path into BTC, ETH and SOL. How Does This Fit Into Europe’s MiCA-Ready Market? Revolut’s approval under MiCA in October gave the company the ability to passport crypto services across the EEA. Trust Wallet’s integration arrives as fintechs and exchanges move to align their products with the bloc’s new rulebook, which sets uniform standards for custody, liquidity, transparency and stablecoin oversight. Trust Wallet already supports a broad range of fiat-to-crypto services through MoonPay, Mercuryo, Binance Connect, Topper, AlchemyPay, Ramp, Paybis and Swapped.com. Revolut becomes the newest addition and one of the most widely used, but the list of off-ramps remains limited to MoonPay, Mercuryo and Ramp. For users, the Revolut link offers broader currency options. Purchases can be made in euros, British pounds, Czech koruna, Danish krone, Polish złoty and other supported fiat currencies. BTC, ETH and SOL are available from day one, with plans to add stablecoins such as USDC. Though the crypto purchase carries no Revolut fee, loading funds into Revolut is not always free. Bank transfers, card top-ups and cash deposits may include charges. Cash deposits incur a 1.5% fee and are capped at $3,000 per month, according to Revolut’s FAQs. Why Trust Wallet Is Looking Beyond Simple Wallet Functionality Trust Wallet has been broadening its product stack to capture sectors growing quickly within Web3. CZ’s backing gives the wallet visibility across centralized and decentralized markets, and recent integrations have focused on prediction markets and real-world asset tokenization. The Revolut partnership extends that strategy into fiat on-ramping, an area that remains one of the largest friction points for self-custody users. The integration’s design mirrors a broader trend in the wallet ecosystem: linking familiar mobile-banking flows to crypto without giving up private-key control. Revolut handles the fiat side, Trust Wallet handles custody, and purchases settle directly into the user’s wallet. For Revolut, the move builds on a valuation milestone. The company recently disclosed that a private share sale pushed its valuation to $75 billion, calling itself “Europe’s most valuable private company and in the top 10 of the world’s most valuable private companies.” Investor Takeaway Zero-fee fiat on-ramping inside a self-custody wallet is rare in Europe. Revolut’s scale gives Trust Wallet a competitive edge as MiCA-compliant services take shape in 2025. What Comes Next? BTC, ETH and SOL form the initial launch set, but both companies say stablecoin support is next. If USDC and similar assets are added, Trust Wallet could become one of the most accessible self-custody stablecoin entry points in Europe. The partnership arrives as self-custody adoption grows across Europe, driven by clearer rules and increased scrutiny of centralized exchanges. The ability to buy crypto directly into a private wallet without extra fees may draw more traders toward non-custodial tools ahead of MiCA's full enforcement.

The UK’s Financial Conduct Authority (FCA) has confirmed that supporting UK‑issued stablecoins to deliver faster and more convenient payments will be a priority in its 2026 growth strategy. The regulator said it will open its regulatory sandbox to allow firms to safely test stablecoin issuance and support innovative policy development ahead of full digital‑asset rules. In a letter to the Prime Minister and Chancellor, the FCA said that most of the nearly 50 growth commitments it set out at the start of 2025 have been delivered and additional initiatives to support growth have also been completed. The package of reforms is designed to help firms scale, support home ownership, strengthen capital markets, and give consumers broader investment options. FCA Chief Executive Nikhil Rathi said: ”Supporting growth helps consumers, improving their financial resilience and providing more choice. Our reforms help the UK maintain its global competitive edge in our world‑leading wholesale markets, attract international investment, and lead on innovation in financial services. We will continue to embrace a bolder risk appetite to support growth, while maintaining our commitment to protect consumers and ensure market integrity.” The regulator said next year’s initiatives will focus on more efficient supervision, the digitalisation of financial services, increasing SME lending, and boosting trade and international competitiveness. Plans also include deepening US‑UK market integration through the Transatlantic Taskforce for Markets of the Future and preparing to enable early‑stage firms to conduct regulated business ahead of full authorisation once legislation is passed. The growth approach letter makes clear that the FCA will also finalise digital assets rules and progress UK‑issued sterling stablecoins as part of its digital innovation agenda in 2026. Alongside the stablecoin priority, flagship measures delivered in 2025 include the launch of a private stock market (PISCES) to improve capital raising, a Supercharged Sandbox in partnership with Nvidia to test AI innovations, and reforms to reduce regulatory burdens on firms. The FCA also expanded support for new and scaling firms, improved supervisory processing times, and strengthened the UK’s presence in international markets. The FCA’s strategy reflects its continued push to integrate digital assets into the UK’s financial ecosystem while retaining a focus on consumer protection and market integrity. UK FCA Strengthens Consumer Protection and Expands Investment Access The UK’s Financial Conduct Authority (FCA) has launched a new Firm Checker tool to help consumers verify whether financial services providers are authorised, tackling the rise in scams targeting investors and pension holders. The regulator said the tool will make it easier for consumers to identify legitimate firms and safeguard their savings amid increasingly sophisticated fraud schemes. In parallel, the FCA has rolled out reforms to strengthen the UK’s investment culture and widen retail access to digital assets. Measures include clearer investment disclosures and lifting restrictions on certain retail crypto products under strict safeguards, supporting informed participation in both traditional and digital financial markets. These initiatives complement the FCA’s broader 2026 growth strategy, which includes stablecoin adoption and digital innovation, signalling a coordinated push to boost market integrity and accessibility.

Bitcoin cryptocurrency can be expected to fall further to the next support level 88155.00 (which stopped the previous minor correction ii)   Bitcoin reversed from resistance level 95000.00 Likely to fall to support level 88155.00 Bitcoin cryptocurrency recently reversed down from the resistance zone between the resistance level 95000.00 (which stopped two of the earlier upward corrections (a) and ii, as can be seen from the daily Bitcoin chart below), upper daily Bollinger Band and the 50% Fibonacci correction of the earlier downward impulse from the start of November. The downward reversal from this resistance zone created the daily Shooting Star – which will be followed by daily Evening Star if the price closes today near the current levels. Given the strongly bearish sentiment that can be seen across the FX markets today, Bitcoin cryptocurrency can be expected to fall further to the next support level 88155.00 (which stopped the previous minor correction ii) [caption id="attachment_176423" align="alignnone" width="800"] Bitcoin Technical Analysis[/caption] The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

The U.S. Department of Justice announced that Paxful Holdings Inc., operator of the peer-to-peer virtual currency trading platform Paxful, has pleaded guilty to three federal criminal charges: conspiring to violate the Travel Act, conspiring to operate an unlicensed money transmitting business (MTB), and conspiring to violate the Bank Secrecy Act (BSA). The company will pay a $4 million criminal penalty, a figure determined by the DOJ based on Paxful’s limited ability to pay compared to an otherwise applicable penalty of more than $112 million. Prosecutors allege that Paxful knowingly moved cryptocurrency for criminals, including fraudsters, extortionists, money launderers, and individuals engaged in illegal prostitution. From 2017 to 2019, Paxful processed over 26.7 million trades totaling nearly $3 billion in value, collecting approximately $29.7 million in revenue. Yet during this period, the company largely ignored required AML protocols, failed to implement KYC checks, and knowingly facilitated transactions tied to illicit activity and high-risk jurisdictions, including Iran and North Korea. One of the most significant allegations centers on Paxful’s facilitation of payments for Backpage and similar platforms, which were known hubs for illegal prostitution, including cases involving minors. Between 2015 and 2022, nearly $17 million in bitcoin flowed from Paxful to Backpage and related sites, generating at least $2.7 million in profits for Paxful. DOJ officials stressed that the company marketed itself as a platform without effective KYC or AML oversight — a deliberate strategy that attracted criminal clientele and contributed to widespread misuse of the platform. Takeaway Paxful admitted to facilitating illicit transactions by intentionally avoiding KYC/AML controls, enabling criminal activity from prostitution rings to fraud and sanctions evasion. How Did Paxful’s Corporate Conduct Violate the Travel Act, BSA, and Money Transmission Laws? The Travel Act charge stems from Paxful’s role in promoting and facilitating illegal prostitution through interstate commerce, particularly through its cryptocurrency services for Backpage. The DOJ argues that Paxful’s financial infrastructure directly supported unlawful transactions tied to exploitation and organized criminal activity. Additionally, Paxful conspired to operate an unlicensed money transmitting business by knowingly handling funds tied to criminal offenses, including fraud schemes, romance scams, and extortion operations. Prosecutors also state that Paxful transmitted cryptocurrency in ways that supported unlawful activity without the licensing, monitoring, and AML safeguards required under U.S. law. Finally, Paxful admitted to conspiring to violate BSA requirements by failing to maintain an effective AML program, failing to file suspicious activity reports (SARs), and providing third parties with AML policies it knew were fake or unenforced. Between 2015 and 2019, the company marketed itself to users as a platform that required no KYC information and permitted anonymous trading—conduct that regulators say allowed Paxful to become a vehicle for both financial crime and illicit cross-border transactions. Takeaway The DOJ concluded Paxful violated multiple federal laws by enabling anonymous, unmonitored money transmission and ignoring mandated AML requirements. What Happens Next and What Does This Mean for Virtual Asset Compliance? The DOJ’s resolution with Paxful reflects both the seriousness of its violations and the company’s cooperation since the investigation began. Although Paxful did not voluntarily self-disclose wrongdoing, authorities credited the firm for producing extensive internal records, conducting a thorough internal investigation, and implementing remedial measures. These actions contributed to a 25% reduction off the bottom of the sentencing guidelines range. Paxful’s founder and former CTO, Artur Schaback, pleaded guilty in July 2024 to charges related to failing to maintain an effective AML program, showing broader institutional accountability beyond the company itself. Paxful will formally face sentencing on Feb. 10, 2026. The case is part of a coordinated enforcement effort involving FinCEN, IRS-CI, ICE HSI, and the DOJ’s Bank Integrity Unit, which focuses on financial institutions that threaten the integrity of U.S. markets and the global financial system. For the virtual asset industry, the case underscores a clear message: platforms that knowingly ignore AML/KYC obligations or market themselves as anonymity-friendly will face aggressive enforcement actions. Regulators continue to emphasize that innovation cannot come at the cost of exposing the financial system to illicit finance, and the Paxful conviction signals that willful non-compliance—whether through omission or design—will not be tolerated. Takeaway Paxful’s guilty plea signals heightened federal scrutiny of virtual asset platforms and sets a precedent: AML failures and willful blind spots will trigger severe criminal consequences.

Andreessen Horowitz's dedicated crypto venture capital arm, a16z crypto, has officially established its first physical presence in Asia by opening a new office in Seoul, South Korea. This landmark move confirms the firm's strategic pivot toward the Asia-Pacific (APAC) region, recognizing its burgeoning importance as a major driver of global crypto adoption and innovation. The Seoul office will be spearheaded by Sungmo Park, who joins as the Head of APAC go-to-market and brings extensive regional expertise from his prior leadership roles at Polygon Labs and the Monad Foundation. Seoul: The Gateway to Asia's Crypto Giants The decision to choose Seoul as the firm's Asian base is highly strategic, reflecting the city's status as a global crypto powerhouse. South Korea is cited by a16z crypto as the world's second-largest cryptocurrency market, where nearly one in three adults reportedly owns digital assets—a penetration rate that surpasses local stock ownership. Furthermore, the broader APAC region accounted for a staggering $2.36 trillion in on-chain value over the 12 months to June 2025, marking a 69% increase year-over-year. This explosive growth, coupled with the region's strong concentration of on-chain users and deep pool of developer talent, makes Seoul the ideal hub for supporting the next wave of web3 development. Go-To-Market Support and Regional Strategy The Seoul office's mandate will primarily be to provide comprehensive go-to-market support for a16z crypto’s diverse portfolio companies as they seek to expand and establish a footing in Asia. This involves key activities such as forging strategic partnerships across East Asia, Greater China, and Southeast Asia; accelerating distribution channels; and building localized developer communities. While the firm has raised over $7.6 billion across its crypto funds, the Seoul office's initial focus will be on operational support and business development rather than direct investment advisory work, which would require separate licensing from the Financial Services Commission (FSC). However, the ultimate goal is to connect the Silicon Valley VC giant with Asia's vibrant ecosystem, especially in areas like crypto gaming and social blockchain apps, which are particularly popular among the region's mobile-first consumer base. The firm is actively seeking to align with local regulations and may face the standard process of registering as a foreign Virtual Asset Service Provider (VASP) if its operations extend to offering direct virtual asset services to Korean users.

The US Dollar Index (DXY) fell sharply to point A yesterday after the FOMC announced a 0.25% rate cut and Jerome Powell held a press conference. The rate reduction has made the dollar less appealing as a store of value or for yield, while the indication that the Fed may pause before further cuts offers some support. As a result, the current level reflects the market’s attempt to find a fair valuation for the US currency. Technical perspective A few days ago, we highlighted: the presence of two overlapping trend channels; signs of selling pressure dominating the market; the emergence of a consolidation zone. Yesterday’s price action added clarity to the picture: the consolidation zone (marked in black) was breached after the median of the red channel acted as resistance (arrowed on the chart); the index fell to the lower boundary of the red channel; the previous support near 98.78 now acted as resistance (second arrow); the RSI is approaching oversold levels, indicating continued bearish pressure. Taken together, these signals suggest a potential continuation of the downward slide along the lower boundary of the red channel. If this momentum persists, the DXY could test the lower boundary of the blue channel, which may serve as a significant support level. FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms! The FXOpen App is a dedicated mobile application designed to give traders full control of their accounts anytime, anywhere. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.  

ATFX, a globally regulated fintech broker specialising in FX and CFDs, is proud to announce a strategic data infrastructure collaboration with KX, a leading software company specialising in time-series data management and analytics. This collaboration aims to enhance ATFX’s technology platform with faster analytics, smarter automation, and greater operational efficiency, delivering more timely insights and better decision-making across its trading operations. These operations involve managing complex data flows from numerous liquidity providers and prime brokers, supporting hundreds of tradable instruments, and servicing a large, active global client base. Harnessing Advanced KX technologies to Enhance ATFX’s Next-Level Trading With the integration of KX’s technologies, ATFX will unlock significant advantages including: Real-Time Decision Support: Using kdb+, a high-performance, vector-based, time-series database optimized for ultra-low latency, real-time, streaming and historical market data, ATFX can instantly process market data streams to provide trading, risk, and operations teams with timely, actionable insights.   Democratized Data Access: The KX MCP Server offers an AI-powered interface combining natural-language queries with tools to access complex structured and unstructured financial data, letting ATFX teams, including non-technical business users get accurate, real-timeinsights without needing to code.   Enhanced Client Reporting: Powered by the KDB-X platform, a unified, high-performance data engine that integrates time-series, vector, and AI analytics, ATFX can deliver faster, more accurate reports to institutional and retail clients, boosting transparency. Scalability & Cost Efficiency: With increasing trading volumes, ATFX can scale its operations efficiently, enhancing overall performance while keeping infrastructure costs under control. AI-Powered Insights & Automation: Through integration of advanced AI and large language models, ATFX automates workflows and gets better insights, enhancing operational efficiency. Driving Innovation with Real-World Impact This collaboration enhances ATFX’s capabilities by enabling real-time risk modelling and scenario analysis for faster portfolio risk management. Automated, customizable dashboards streamline reporting, while AI-powered workflows boost insight generation and process efficiency. Secure, rapid access to real-time and historical data across teams improves collaboration and agility.  “Our collaboration with KX demonstrates ATFX’s commitment to leveraging state-of-the-art technology to deliver real-time data excellence and superior client service,” said Jeffrey Siu, Chief Operating Officer, ATFX. “In empowering the ATFX team to make smarter, faster decisions in a dynamic market environment, this initiative directly delivers clear benefits to our clients.” Ashok Reddy, Chief Executive Officer of KX, added, “We are thrilled to collaborate with ATFX, a forward-thinking leader in online trading. Our MCP Server and KDB-X platform will enable ATFX to harness the full power of real-time market intelligence and AI, driving innovation and operational efficiency.” About ATFX ATFX is a leading global fintech broker with a local presence in 24 locations and holds 9 licenses from regulatory authorities, including the UK's FCA, Australia's ASIC, Cyprus' CySEC, the UAE's SCA, Hong Kong's SFC, South Africa's FSCA, Mauritius' FSC, Seychelles' FSA, and Cambodia's SERC. With a strong commitment to customer satisfaction, innovative technology, and strict regulatory compliance, ATFX delivers exceptional trading experiences to clients worldwide. For further information on ATFX, please visit ATFX website https://www.atfx.com. About KX KX Software powers real-time, time-series, and AI-driven analytics across capital markets, aerospace & defence, and high-tech manufacturing. Built for speed, precision, and scale, the KX platform enables organizations to extract actionable insights from streaming, sensor, and historical data to support critical use cases from predictive maintenance and operational automation to real-time simulation and vertical agentic AI. Trusted globally for its proven performance and reliability, KX delivers the data infrastructure enterprises need to thrive in an AI-driven world. www.KX.com  

Silicon Valley has historically rewarded deep specialization. Yet as AI shifts from a niche discipline into the backbone of enterprise infrastructure, specialization alone is no longer enough. The distance between technical research, security requirements, investment logic, and talent formation has widened. Teams are discovering that they need people who can understand not just one domain, but the systems that connect them. Yi Luo represents this emerging archetype—a cross-functional strategist who can read the structural rules governing AI technology, capital formation, and founder ecosystems. Her trajectory through linguistics, speech AI, cybersecurity investing, and global entrepreneurial networks gives her a vantage point that few operators possess. Colleagues often note that she approaches any challenge—technical or organizational—by first decoding the underlying system, then using that logic to guide execution. At a moment defined by rapid generative-AI expansion and increasingly complex market dynamics, this systems-level clarity is becoming a differentiating advantage. 1. The Linguist’s Logic: Understanding Technical and Market Behavior Through Underlying Rules Luo’s analytical foundation comes from her academic training. With a Master of Science in Linguistics from Georgetown University, specializing in theoretical and computational linguistics, she learned to break down complex models into structural components. Those who have worked with her say this mindset now shapes how she interprets product direction, founder execution, and market trajectories. Her early AI experience underscores this pattern. Luo worked on Mandarin data and annotation pipelines for Google’s large-scale TTS models, later supporting semantic optimization for TikTok’s V3 TTS system. These roles required precise understanding of data consistency, phonetic variation, and model calibration—skills that translate directly into evaluating AI product feasibility, reliability, and scaling constraints. This grounding in first-principles technical rigor later became the basis for her investment and ecosystem work, enabling her to bridge model behavior with real-world market implications. 2. Decoding Capital: Rain Capital’s Structural Investment Strategy Luo now applies her systems thinking at Rain Capital, a cybersecurity and AI-security venture firm founded by Dr. Chenxi Wang—one of the field’s most recognized operators and thinkers. As Chief of Staff, Luo leads deal flow, diligence, and operational architecture across the fund. Insiders describe her role as connecting three critical vectors into a single evaluative framework: model risk → enterprise need → founder capability This integrated approach allows Rain Capital to identify high-leverage opportunities earlier than competitors. The firm maintains an unusually strong exit record for its stage, including Capsule8 (Sophos) and Altitude Networks (Coinlist). During Luo’s tenure, Fund II secured its first exit: SPLX, an AI red-teaming company acquired by Zscaler within six months, achieving 2.2x MOIC and 300%+ IRR. Her initial evaluation focused on the founders’ ability to land major enterprise accounts despite minimal resources—a judgment later validated by SPLX’s rapid market traction. Rather than analyzing companies through traditional checklists, Luo’s method maps how technical design and market structure interact over time. This allows Rain to assess not just product-market fit, but “system-market fit”—a more holistic way of predicting long-term defensibility. 3. Closing the Ecosystem Loop: Creating Non-Linear Advantage Across Global Networks Luo’s influence extends beyond venture investing into ecosystem design. She operates what peers describe as a closed feedback loop between upstream venture insights and downstream founder education. Upstream Value: Sharpening Founder Pipelines At Rain, she contributes to sourcing strategies and helps shape the fund’s theses, such as Rain’s emerging focus on agentic security. She translates these frameworks into communities of founders and operators—creating earlier and higher-signal deal flow. Downstream Value: Strengthening Global Founder Education As Learning Design Lead at Beta University, Luo architects multilingual entrepreneurship curricula now used by organizations including Harvard Alumni Entrepreneurs (HarvardAE) and Nanyang Technological University (NTU). The program supports: 876 founders 82 mentors 536 investors, and a broader network of 30,000+ participants, whose alumni companies exceed $10B in valuation. Her work at EchoHer—where she leads content and communications—has helped scale the community to 9,000+ founders, investors, and allies, with 70+ annual events across 10+ global cities. Her campaigns frequently achieve 25–30% engagement rates, strengthening visibility for women and non-binary founders in global tech. International Authority Luo is also a judge and coach for innovation programs such as: Beta University Demo Days NYU U.S.–China Innovation Summit GTM Hackathon (Europe) Organizers note her ability to translate technical, market, and execution narratives into clear, structured evaluations—helping founders and reviewers align more quickly. Her roles across North America, Asia, and Europe give her insight into a global innovation map that is evolving rapidly, often revealing patterns before they hit mainstream discourse. Conclusion: Why Early AI Innovation Requires System Architects, Not Specialists As AI systems transform enterprise workflows, cybersecurity demands, talent development, and global founder pipelines, early-stage success increasingly depends on operators who can bridge multiple domains. The industry is entering an era where the greatest leverage comes not from singular expertise, but from the ability to interpret how technologies, organizations, and ecosystems influence one another. Luo’s career reflects the emergence of this new strategic role—a “system decoder” who can read patterns across networks, capital markets, and technical architectures, then translate that complexity into actionable decisions. For anyone building or advancing a career in AI, her trajectory highlights a critical shift: Technical skill remains essential, but true leverage comes from understanding the entire system—the incentives, bottlenecks, and hidden structures that shape outcomes. In a decade defined by generative-AI acceleration, that systems-level mastery is what will distinguish impact from noise, and direction from drift.

The Securities and Exchange Commission has charged Canadian national Nathan Gauvin and three related entities—Blackridge, LLC, Gray Digital Capital Management USA, LLC, and Gray Digital Technologies, LLC—with orchestrating two fraudulent securities schemes that collectively raised more than $18 million from investors in the U.S. and abroad. According to the SEC’s complaint, Gauvin used fabricated credentials, falsified account statements, and misleading performance metrics to deceive retail investors, many of whom discovered him on Discord, where he falsely portrayed himself as a billion-dollar asset manager. The first alleged scheme, spanning September 2022 to November 2024, involved an unregistered offering of interests in the so-called Gray Fund. Gauvin and his entities claimed the fund generated double-digit monthly returns and controlled more than $78 million in assets. In reality, the SEC states the fund’s actual compounded monthly return was approximately 1.4%, with assets dramatically lower than represented. Of the $18.1 million raised, Gauvin allegedly misappropriated roughly $6.3 million for personal use, including luxury purchases such as custom jewelry, concierge services, real estate, and art. A second fraudulent offering, beginning May 2024, targeted retail investors through the sale of “seed stock” in Gray Digital Technologies at $30,000 per share. Gauvin allegedly misrepresented the company as a $60 million-valued business generating more than $12 million in annual revenue. The SEC asserts the company had no operations or assets and that Gauvin raised at least $60,000 from two investors before cutting off communication entirely. The complaint seeks permanent injunctions, disgorgement with interest, civil penalties, conduct-based restrictions, and an investment-adviser bar against Gauvin. Takeaway The SEC alleges Gauvin executed two fraudulent schemes totaling more than $18 million, using fake credentials and misappropriated funds while deceiving retail investors through Discord communities. How Did Gauvin Allegedly Use Social Media and Fabricated Credentials to Build Investor Trust? According to the SEC, Gauvin cultivated a large following on Discord by projecting an image of professional success, claiming that Blackridge—actually a shell entity—managed more than $1 billion in assets. These claims helped him gain credibility among retail investors who were drawn to the promise of exceptional returns, curated insights, and access to what appeared to be a sophisticated investment operation. The SEC warns that Gauvin reinforced his false narrative by producing falsified account statements, exaggerated performance results, and deceptive financial reporting. Investors were misled into believing they were participating in a high-performing, diversified investment fund with professional oversight. Instead, much of their capital was allegedly diverted for Gauvin’s personal benefit, contradicting the story he presented in Discord channels. Authorities emphasize that investors are particularly vulnerable when investment promotions occur in informal online communities. Associate Director Jaime Marinaro noted that Gauvin “exploited the trust of his online followers” to commit what the SEC describes as a brazen fraud. The case underscores broader concerns about the growing use of social media channels by unregistered individuals to promote unverified investment products and solicit investor funds. Takeaway Gauvin allegedly used Discord and fabricated credentials to create the illusion of expertise, highlighting the risks investors face when evaluating financial opportunities promoted through online communities. What Legal Actions Are Being Pursued and What Lessons Can Investors Draw? The SEC has charged Gauvin and his firms with violating antifraud provisions of federal securities laws, while Gauvin, Gray Digital, and Gray Digital Technologies face additional charges for securities-registration violations. In parallel, the U.S. Attorney’s Office for the Eastern District of New York has filed criminal charges against him, signaling the seriousness of the alleged misconduct. Together, regulators are seeking injunctions, civil penalties, disgorgement of ill-gotten gains, and restrictions preventing Gauvin from serving as an investment adviser. The SEC highlights the importance of verifying the credentials and registration status of anyone offering investment opportunities. Regulators encourage investors to consult the SEC’s Investor Bulletin: How to Check Out Your Investment Professional, which provides step-by-step instructions for confirming professional licenses, disciplinary histories, and registration details. With fraud increasingly originating on social media, these tools are essential for assessing legitimacy and avoiding scams. The case underscores the continued diligence needed in an environment where scammers can easily fabricate credibility and exploit personal networks online. As gauged from this enforcement action, regulators are intensifying their scrutiny of digital investment promotions and urging investors to engage only with registered, verifiable financial professionals. The SEC also acknowledged assistance from the CFTC and U.S. Attorney’s Office, emphasizing the collaborative approach needed to address emerging fraud channels. Takeaway Regulators are pursuing civil and criminal remedies; investors should always verify registration status and credentials before acting on investment opportunities—especially those promoted online.