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USDT’s $187B Market Cap Scale Signals Capital on Standby, Not in Retreat
USDT hit $187B market cap as traders held capital in stable form instead of risk assets.
Crypto ETF outflows showed a cautious market, while stablecoin use kept rising.
Tether’s USDT user activity climbed to 24.8M as regulators pushed for tighter oversight.
Tether’s flagship stablecoin USDT ended 2025 at an unprecedented $187 billion in market capitalization, a size that now looms over every corner of the digital-asset landscape. The figure landed at a time when capital across the rest of the market seemed to move in the opposite direction. Traders who once favored high-beta exposure grew noticeably cautious, yet they did not withdraw entirely.
Instead, they parked funds in what amounts to crypto’s most liquid waiting room. This shift sharpened in the weeks after the October liquidation episode, when price action remained unstable, and sentiment thinned out. Even so, stablecoin circulation pushed higher. The pattern puzzled some analysts at first. But as numbers settled, it became harder to ignore: liquidity was gathering, not fleeing.
Liquidity Growth Amid Risk Aversion
By early February 2026, Tether’s circulating supply crossed $187 billion, reinforcing its position as the sector’s primary settlement token. Industry desks described the rise less as a rotation out of crypto and more as a pause, an extended one. Much of this liquidity appeared content to stay in stable form while traders assessed a market that had yet to find a firm footing.
Source: Tether
Tether also closed the year with its strongest stretch of user activity on record. Per reports, its Q4 market report showed roughly 24.8 million monthly active users, marking a steep climb from early 2024. That growth pushed USDT’s share of monthly active stablecoin users to 68.4%, an unusually wide spread during a period when participation across many trading venues drifted lower.
Source: Tether
The consistency of those increases, though, stood out. Liquidity was uneven almost everywhere else, yet USDT’s traffic kept advancing quarter after quarter. Even in a contracting market, demand for a stable unit of account held firm.
ETF Outflows Reveal a Cautious Market
The backdrop for this expansion was anything but favorable for risk assets. U.S. spot Bitcoin ETFs recorded more than $1.61 billion in net outflows last month, according to flow trackers, while Ethereum products saw more than $353.20 million leave over the same period.
Source: SoSoValue
The retreat didn’t end there. February began with additional losses, about $255.07 million from Bitcoin ETFs and $68.28 million from Ethereum vehicles. The contrast was hard to miss. Stablecoins were swelling while regulated investment products shrank.
Source: SoSoValue
Yet investors were not exiting the industry outright. They simply moved capital to a position where they could respond quickly if conditions shifted. Consequently, the rhythm of flows suggested hesitation rather than surrender.
Related: Vitalik Buterin Warns Ethereum Builders Against Clone Chains
User Activity Expands Despite Market Stress
On-chain data pointed to a user base that did not meaningfully shrink, even as speculative volume cooled. Analysts reported that activity in USDT resembled functional usage, payments, transfers, and hedging, rather than short bursts tied to arbitrage cycles.
The sequence of growth, coming after repeated liquidity shocks, gave the token an outsized role in stabilizing market activity through late 2025. Meanwhile, this rise unfolded while regulatory debate sharpened. In Washington, the GENIUS Act remained the central reference point in discussions over how stablecoin issuers should operate.
New York officials, however, took a more confrontational stance. A letter signed by Attorney General Letitia James and four district attorneys, including Manhattan’s Alvin Bragg, warned that the measure risked granting legitimacy without matching safeguards.
Their concern focused on consumer protection and oversight gaps linked to illicit finance and fraud. The timing of the criticism ensured the regulatory conversation would shadow the sector just as its largest token reached a new scale.
The post USDT’s $187B Market Cap Scale Signals Capital on Standby, Not in Retreat appeared first on Cryptotale.
The post USDT’s $187B Market Cap Scale Signals Capital on Standby, Not in Retreat appeared first on Cryptotale.
Crypto ETF outflows showed a cautious market, while stablecoin use kept rising.
Tether’s USDT user activity climbed to 24.8M as regulators pushed for tighter oversight.
Tether’s flagship stablecoin USDT ended 2025 at an unprecedented $187 billion in market capitalization, a size that now looms over every corner of the digital-asset landscape. The figure landed at a time when capital across the rest of the market seemed to move in the opposite direction. Traders who once favored high-beta exposure grew noticeably cautious, yet they did not withdraw entirely.
Instead, they parked funds in what amounts to crypto’s most liquid waiting room. This shift sharpened in the weeks after the October liquidation episode, when price action remained unstable, and sentiment thinned out. Even so, stablecoin circulation pushed higher. The pattern puzzled some analysts at first. But as numbers settled, it became harder to ignore: liquidity was gathering, not fleeing.
Liquidity Growth Amid Risk Aversion
By early February 2026, Tether’s circulating supply crossed $187 billion, reinforcing its position as the sector’s primary settlement token. Industry desks described the rise less as a rotation out of crypto and more as a pause, an extended one. Much of this liquidity appeared content to stay in stable form while traders assessed a market that had yet to find a firm footing.
Source: Tether
Tether also closed the year with its strongest stretch of user activity on record. Per reports, its Q4 market report showed roughly 24.8 million monthly active users, marking a steep climb from early 2024. That growth pushed USDT’s share of monthly active stablecoin users to 68.4%, an unusually wide spread during a period when participation across many trading venues drifted lower.
Source: Tether
The consistency of those increases, though, stood out. Liquidity was uneven almost everywhere else, yet USDT’s traffic kept advancing quarter after quarter. Even in a contracting market, demand for a stable unit of account held firm.
ETF Outflows Reveal a Cautious Market
The backdrop for this expansion was anything but favorable for risk assets. U.S. spot Bitcoin ETFs recorded more than $1.61 billion in net outflows last month, according to flow trackers, while Ethereum products saw more than $353.20 million leave over the same period.
Source: SoSoValue
The retreat didn’t end there. February began with additional losses, about $255.07 million from Bitcoin ETFs and $68.28 million from Ethereum vehicles. The contrast was hard to miss. Stablecoins were swelling while regulated investment products shrank.
Source: SoSoValue
Yet investors were not exiting the industry outright. They simply moved capital to a position where they could respond quickly if conditions shifted. Consequently, the rhythm of flows suggested hesitation rather than surrender.
Related: Vitalik Buterin Warns Ethereum Builders Against Clone Chains
User Activity Expands Despite Market Stress
On-chain data pointed to a user base that did not meaningfully shrink, even as speculative volume cooled. Analysts reported that activity in USDT resembled functional usage, payments, transfers, and hedging, rather than short bursts tied to arbitrage cycles.
The sequence of growth, coming after repeated liquidity shocks, gave the token an outsized role in stabilizing market activity through late 2025. Meanwhile, this rise unfolded while regulatory debate sharpened. In Washington, the GENIUS Act remained the central reference point in discussions over how stablecoin issuers should operate.
New York officials, however, took a more confrontational stance. A letter signed by Attorney General Letitia James and four district attorneys, including Manhattan’s Alvin Bragg, warned that the measure risked granting legitimacy without matching safeguards.
Their concern focused on consumer protection and oversight gaps linked to illicit finance and fraud. The timing of the criticism ensured the regulatory conversation would shadow the sector just as its largest token reached a new scale.
The post USDT’s $187B Market Cap Scale Signals Capital on Standby, Not in Retreat appeared first on Cryptotale.
The post USDT’s $187B Market Cap Scale Signals Capital on Standby, Not in Retreat appeared first on Cryptotale.
Why a Simple Bot Is Outperforming Almost Every Polymarket Trader
A Polymarket bot has gained over $558K through nonstop trades and rapid execution.
The bot uses imbalance gaps to lock profit instead of predicting event results.
Arbitrage lets the bot win when YES and NO cost under $1, as one side always settles at $1.
A single automated trading account is reshaping perceptions around performance on Polymarket after publicly available data showed it generated more than $500K in cumulative profit in just over a month. The account’s activity, shared widely by crypto commentator OxMarioNawfal, has drawn attention not because of bold predictions, but because of how methodical and mechanical its strategy appears to be.
Somebody created an AI agent to trade Polymarket predictions and is making $500K / month
The agent has executed 11,420 predictions at 380 trades per day pic.twitter.com/TxHdfVCHWd
— 0xMarioNawfal (@RoundtableSpace) February 4, 2026
Dashboard data visible on the platform shows the account, operating under the wallet alias k9Q2mX4L8A7ZP3R, joined in December 2025 and has since executed more than 11,420 individual trades. That pace translates to roughly 380 trades per day.
Despite the volume, the account’s current open positions total about $47.6K, while its largest single winning trade exceeded $23K. Its all-time profit now stands at roughly $558,024, placing it among the most profitable addresses on the platform.
High Volume, Not High Conviction
The trading pattern stands in contrast to how most users participate on Polymarket. On-chain metrics and community dashboards show that fewer than 1% of wallets earn more than $1,000 in lifetime profit.
Per reports, most participants place occasional bets tied to elections, court rulings, or macroeconomic releases, often based on news headlines or personal interpretation of events. By comparison, the automated account does not appear to rely on high-conviction positions.
The sheer number of trades suggests it is not waiting for major outcomes to play out. Instead, it repeatedly enters and exits positions across many markets, capturing small price discrepancies that emerge throughout the day. Over thousands of trades, those marginal gains compound into substantial returns.
Arbitrage Over Forecasting
A separate analysis from CyberK offered a glimpse into the engine behind these results. In simple terms, binary markets settle at $1 for whichever side, YES or NO, wins. The method at play involves building exposure to both sides when their combined cost slips below that threshold.
For example, if YES shares are acquired at an average price of $0.48 and NO shares at $0.49, the total cost is $0.97. At settlement, one side pays out $1.00, guaranteeing a $0.03 gain per share. This approach removes the need to forecast outcomes. As a result, the system is not predicting events anymore; it is exploiting temporary imbalances in pricing.
Such an effect doesn’t require perfect timing, as inefficiencies can emerge during volatile periods, sudden shifts in liquidity, or brief delays in price updates following external news. Thus, the automated strategy continuously scans for these moments and executes instantly, something manual traders cannot replicate at scale.
Speed as the Competitive Edge
That speed advantage matters because Polymarket prices update continuously as orders land. The platform behaves more like a live order book than a polling barometer. Minor swings in sentiment or imbalance can create small dislocations that last seconds, sometimes less. A human trader scrolling through charts can’t match that pace even on their most attentive days.
Leaderboards reinforce the trend. The top-performing addresses share similar traits: high trade counts, low directional conviction, and steady profit curves. Their returns are built on execution more than forecast accuracy, a shift that complicates assumptions about what prediction markets reward.
Related: Vitalik Signals New Path as Ethereum Layer One Expands Fast
A Shift in Market Dynamics
The rise of automated behavior suggests the center of gravity on Polymarket is drifting. Human traders still drive most of the conversation and liquidity, yet the consistent winners increasingly appear to be those running disciplined, rapid-fire workflows. Consequently, the gap is widening, and for many users, the findings help explain why strong opinions do not always translate into strong returns.
However, what this episode makes clear is that the standout performer on Polymarket is not the trader with the boldest thesis, but the system that never hesitates, never idles, and treats inefficiency, not prediction, as its core opportunity.
The post Why a Simple Bot Is Outperforming Almost Every Polymarket Trader appeared first on Cryptotale.
The post Why a Simple Bot Is Outperforming Almost Every Polymarket Trader appeared first on Cryptotale.
The bot uses imbalance gaps to lock profit instead of predicting event results.
Arbitrage lets the bot win when YES and NO cost under $1, as one side always settles at $1.
A single automated trading account is reshaping perceptions around performance on Polymarket after publicly available data showed it generated more than $500K in cumulative profit in just over a month. The account’s activity, shared widely by crypto commentator OxMarioNawfal, has drawn attention not because of bold predictions, but because of how methodical and mechanical its strategy appears to be.
Somebody created an AI agent to trade Polymarket predictions and is making $500K / month
The agent has executed 11,420 predictions at 380 trades per day pic.twitter.com/TxHdfVCHWd
— 0xMarioNawfal (@RoundtableSpace) February 4, 2026
Dashboard data visible on the platform shows the account, operating under the wallet alias k9Q2mX4L8A7ZP3R, joined in December 2025 and has since executed more than 11,420 individual trades. That pace translates to roughly 380 trades per day.
Despite the volume, the account’s current open positions total about $47.6K, while its largest single winning trade exceeded $23K. Its all-time profit now stands at roughly $558,024, placing it among the most profitable addresses on the platform.
High Volume, Not High Conviction
The trading pattern stands in contrast to how most users participate on Polymarket. On-chain metrics and community dashboards show that fewer than 1% of wallets earn more than $1,000 in lifetime profit.
Per reports, most participants place occasional bets tied to elections, court rulings, or macroeconomic releases, often based on news headlines or personal interpretation of events. By comparison, the automated account does not appear to rely on high-conviction positions.
The sheer number of trades suggests it is not waiting for major outcomes to play out. Instead, it repeatedly enters and exits positions across many markets, capturing small price discrepancies that emerge throughout the day. Over thousands of trades, those marginal gains compound into substantial returns.
Arbitrage Over Forecasting
A separate analysis from CyberK offered a glimpse into the engine behind these results. In simple terms, binary markets settle at $1 for whichever side, YES or NO, wins. The method at play involves building exposure to both sides when their combined cost slips below that threshold.
For example, if YES shares are acquired at an average price of $0.48 and NO shares at $0.49, the total cost is $0.97. At settlement, one side pays out $1.00, guaranteeing a $0.03 gain per share. This approach removes the need to forecast outcomes. As a result, the system is not predicting events anymore; it is exploiting temporary imbalances in pricing.
Such an effect doesn’t require perfect timing, as inefficiencies can emerge during volatile periods, sudden shifts in liquidity, or brief delays in price updates following external news. Thus, the automated strategy continuously scans for these moments and executes instantly, something manual traders cannot replicate at scale.
Speed as the Competitive Edge
That speed advantage matters because Polymarket prices update continuously as orders land. The platform behaves more like a live order book than a polling barometer. Minor swings in sentiment or imbalance can create small dislocations that last seconds, sometimes less. A human trader scrolling through charts can’t match that pace even on their most attentive days.
Leaderboards reinforce the trend. The top-performing addresses share similar traits: high trade counts, low directional conviction, and steady profit curves. Their returns are built on execution more than forecast accuracy, a shift that complicates assumptions about what prediction markets reward.
Related: Vitalik Signals New Path as Ethereum Layer One Expands Fast
A Shift in Market Dynamics
The rise of automated behavior suggests the center of gravity on Polymarket is drifting. Human traders still drive most of the conversation and liquidity, yet the consistent winners increasingly appear to be those running disciplined, rapid-fire workflows. Consequently, the gap is widening, and for many users, the findings help explain why strong opinions do not always translate into strong returns.
However, what this episode makes clear is that the standout performer on Polymarket is not the trader with the boldest thesis, but the system that never hesitates, never idles, and treats inefficiency, not prediction, as its core opportunity.
The post Why a Simple Bot Is Outperforming Almost Every Polymarket Trader appeared first on Cryptotale.
The post Why a Simple Bot Is Outperforming Almost Every Polymarket Trader appeared first on Cryptotale.
Vitalik Buterin Warns Ethereum Builders Against Clone Chains
Vitalik Buterin warns that clone EVM chains may slow Ethereum progress over time.
The Co-Founder says Ethereum scaling can support growth without endless new layer ones.
Vitalik Buterin also urges builders to explore privacy speed and novel execution models.
Vitalik Buterin has warned Ethereum developers against building copy-paste EVM chains and superficial layer-2 links, saying the trend risks slowing innovation as the ecosystem continues to scale. In a post on X, Buterin said reactions to his recent layer-2 comments exposed a deeper issue, as many projects repeat familiar designs instead of exploring new technical directions.
He focused on teams launching EVM-compatible chains linked to Ethereum through optimistic bridges with week-long withdrawal delays, describing the pattern as convenient but creatively limiting.
Have been following reactions to what I said about L2s about 1.5 days ago.
One important thing that I believe is: "make yet another EVM chain and add an optimistic bridge to Ethereum with a 1 week delay" is to infra what forking Compound is to governance – something we've done…
— vitalik.eth (@VitalikButerin) February 5, 2026
Concerns Over EVM Chains and Optimistic Bridges
Buterin compared the current trend to early DeFi governance forks, such as projects that copied models from Compound, which once appeared productive but later constrained experimentation.
He wrote that building an EVM chain without an optimistic bridge is even worse, adding that Ethereum does not need more copypasta EVM chains or additional layer-1 networks. According to Buterin, the Ethereum base layer already scales and will deliver more EVM blockspace over time, which reduces the need for repeated network replicas.
At the same time, he noted that blockspace will not remain unlimited, especially as AI-driven applications demand lower latency and higher throughput across networks. Still, he argued Ethereum can support many use cases without fragmenting into countless independent layer-1 chains that weaken composability.
Preferred App Chain and Institutional Models
In a recent blog post, Buterin said he supports some designs often described as app chains, especially those deeply integrated with Ethereum’s base layer. He described a prediction market model where issuance and resolution occur on the Ethereum mainnet, while trading executes on a rollup that verifies activity directly from layer-1.
According to Buterin, such systems treat Ethereum integration as a core feature, not an afterthought added later to satisfy ecosystem benchmarks. He also discussed a different model involving institutions like governments or platforms publishing cryptographic proofs of database updates on-chain using STARKs.
Buterin said this structure would not be credibly neutral or trustless, since operators could change rules, but it could enable verifiable algorithmic transparency. He added that this transparency could support economic activity otherwise impossible in government registries or social media systems.
Related: Vitalik Buterin Calls for Creator DAO to Lift Crypto Content Standards
Governance and the Future Direction of Ethereum
Beyond technical design, Buterin has raised concerns about how Ethereum governance decisions take shape across the ecosystem. In an earlier blog post, he argued governance should rely less on informal sentiment and more on structured and accountable processes.
Within this context, he urged developers to build systems that introduce new capabilities, including privacy-focused designs, application-specific efficiency, and ultra-low latency execution. He also criticised projects that present themselves as closely tied to Ethereum while maintaining only minimal technical connections to the base layer.
Reactions across the ecosystem have varied, as some developers support a move toward specialised systems, while others say scaling and cost reduction remain top priorities.
As these debates continue, one question now shapes discussion across the ecosystem: can Ethereum’s next phase balance scaling progress with truly original design choices?
The post Vitalik Buterin Warns Ethereum Builders Against Clone Chains appeared first on Cryptotale.
The post Vitalik Buterin Warns Ethereum Builders Against Clone Chains appeared first on Cryptotale.
The Co-Founder says Ethereum scaling can support growth without endless new layer ones.
Vitalik Buterin also urges builders to explore privacy speed and novel execution models.
Vitalik Buterin has warned Ethereum developers against building copy-paste EVM chains and superficial layer-2 links, saying the trend risks slowing innovation as the ecosystem continues to scale. In a post on X, Buterin said reactions to his recent layer-2 comments exposed a deeper issue, as many projects repeat familiar designs instead of exploring new technical directions.
He focused on teams launching EVM-compatible chains linked to Ethereum through optimistic bridges with week-long withdrawal delays, describing the pattern as convenient but creatively limiting.
Have been following reactions to what I said about L2s about 1.5 days ago.
One important thing that I believe is: "make yet another EVM chain and add an optimistic bridge to Ethereum with a 1 week delay" is to infra what forking Compound is to governance – something we've done…
— vitalik.eth (@VitalikButerin) February 5, 2026
Concerns Over EVM Chains and Optimistic Bridges
Buterin compared the current trend to early DeFi governance forks, such as projects that copied models from Compound, which once appeared productive but later constrained experimentation.
He wrote that building an EVM chain without an optimistic bridge is even worse, adding that Ethereum does not need more copypasta EVM chains or additional layer-1 networks. According to Buterin, the Ethereum base layer already scales and will deliver more EVM blockspace over time, which reduces the need for repeated network replicas.
At the same time, he noted that blockspace will not remain unlimited, especially as AI-driven applications demand lower latency and higher throughput across networks. Still, he argued Ethereum can support many use cases without fragmenting into countless independent layer-1 chains that weaken composability.
Preferred App Chain and Institutional Models
In a recent blog post, Buterin said he supports some designs often described as app chains, especially those deeply integrated with Ethereum’s base layer. He described a prediction market model where issuance and resolution occur on the Ethereum mainnet, while trading executes on a rollup that verifies activity directly from layer-1.
According to Buterin, such systems treat Ethereum integration as a core feature, not an afterthought added later to satisfy ecosystem benchmarks. He also discussed a different model involving institutions like governments or platforms publishing cryptographic proofs of database updates on-chain using STARKs.
Buterin said this structure would not be credibly neutral or trustless, since operators could change rules, but it could enable verifiable algorithmic transparency. He added that this transparency could support economic activity otherwise impossible in government registries or social media systems.
Related: Vitalik Buterin Calls for Creator DAO to Lift Crypto Content Standards
Governance and the Future Direction of Ethereum
Beyond technical design, Buterin has raised concerns about how Ethereum governance decisions take shape across the ecosystem. In an earlier blog post, he argued governance should rely less on informal sentiment and more on structured and accountable processes.
Within this context, he urged developers to build systems that introduce new capabilities, including privacy-focused designs, application-specific efficiency, and ultra-low latency execution. He also criticised projects that present themselves as closely tied to Ethereum while maintaining only minimal technical connections to the base layer.
Reactions across the ecosystem have varied, as some developers support a move toward specialised systems, while others say scaling and cost reduction remain top priorities.
As these debates continue, one question now shapes discussion across the ecosystem: can Ethereum’s next phase balance scaling progress with truly original design choices?
The post Vitalik Buterin Warns Ethereum Builders Against Clone Chains appeared first on Cryptotale.
The post Vitalik Buterin Warns Ethereum Builders Against Clone Chains appeared first on Cryptotale.
Dark Web Incognito Market Operator Sentenced to 30 Years
Incognito Market enabled more than 640000 drug trades across a vast dark web network.
Prosecutors linked fentanyl laced pills sold online to a fatal overdose in Arkansas.
Investigators traced Incognito Market domains to Lin using real-world identity data.
Federal prosecutors in New York secured a 30-year prison sentence against Rui-Siang Lin for running Incognito Market, a dark web narcotics marketplace that sold over $105 million in illegal drugs worldwide. Jay Clayton announced the sentence after Lin pleaded guilty in December 2024 before U.S. District Judge Colleen McMahon.
Prosecutors said Lin owned and operated Incognito Market from October 2020 until its shutdown in March 2024, enabling hundreds of thousands of drug transactions across global networks. At sentencing, Clayton said Lin used the internet to distribute more than one ton of narcotics while earning millions and contributing to widespread harm, including at least one confirmed overdose death.
Incognito Market owner sentenced to 30 years. “Lin orchestrated more than $105 million in online sales of illegal drugs, harming hundreds of thousands,” said U.S. Attorney Jay Clayton.https://t.co/rR1rTZCViA
— US Attorney SDNY (@SDNYnews) February 3, 2026
Can advanced technology ever shield large-scale criminal networks from accountability in the digital age?
A Dark Web Marketplace With Global Reach
According to a recent DOJ press release, Incognito Market operated on the dark web and allowed access through the Tor browser to users across the world with internet connectivity. Lin ran the platform under the alias “Pharaoh” and controlled all decisions involving vendors, buyers, site policies, and technical operations.
Under his leadership, the marketplace grew to more than 400,000 buyer accounts and supported over 1,800 vendors, many of whom operated as established drug traffickers. Investigators said the platform facilitated more than 640,000 individual drug transactions during its four-year operation.
Sales included over 1,000 kilograms of cocaine, more than 1,000 kilograms of methamphetamine, hundreds of kilograms of other drugs, and pills sold as prescription medication. In January 2022, Lin approved a policy that allowed vendors to sell opiates, expanding the site’s listings to include drugs marketed as authentic pharmaceuticals.
Fentanyl Sales and a Fatal Overdose
Law enforcement later confirmed that some pills advertised as oxycodone contained fentanyl instead of the listed medication. In November 2023, an undercover agent purchased tablets from Incognito Market that testing later identified as fentanyl rather than oxycodone.
Authorities linked similar pills to the death of a 27-year-old Arkansas resident in September 2022 after he consumed drugs purchased on the platform.
Prosecutors stated that Lin authorized opiate sales, which allowed vendors to sell dangerous counterfeit drugs throughout the marketplace. The Incognito Market platform functioned like a genuine e-commerce website because it provided branding solutions, customer service, and dispute-resolution systems.
The prosecutors described this design as a tool that enabled users to conduct extensive drug transactions while their illegal activities remained hidden through common internet designs.
Related: Hackers Sell Gemini and Binance User Data on Darkweb: Report
Investigation, Forfeitures, and Broader Enforcement
According to court filings, investigators traced Incognito Market’s domain registration to Lin after he used his real name, phone number, and address during setup. Taiwanese media reported that Lin studied at National Taiwan University and later completed alternative civilian service in St. Lucia, where he worked in technical assistance roles.
During that period, reports said Lin sometimes taught local police about cybercrime and cryptocurrency investigations. The sentencing followed recent Justice Department actions against other darknet operations, including the finalized forfeiture of more than $400 million tied to the Helix crypto mixer.
On the other hand, other prosecutions are like Helix operator Larry Dean Harmon, who pleaded guilty in 2021 and received a three-year prison sentence in November 2024. Earlier cases included a June 2025 seizure of 145 domains and cryptocurrency linked to BidenCash, plus a 2023 recovery action targeting assets tied to New Jersey trafficker Christopher Castelluzzo.
The post Dark Web Incognito Market Operator Sentenced to 30 Years appeared first on Cryptotale.
The post Dark Web Incognito Market Operator Sentenced to 30 Years appeared first on Cryptotale.
Prosecutors linked fentanyl laced pills sold online to a fatal overdose in Arkansas.
Investigators traced Incognito Market domains to Lin using real-world identity data.
Federal prosecutors in New York secured a 30-year prison sentence against Rui-Siang Lin for running Incognito Market, a dark web narcotics marketplace that sold over $105 million in illegal drugs worldwide. Jay Clayton announced the sentence after Lin pleaded guilty in December 2024 before U.S. District Judge Colleen McMahon.
Prosecutors said Lin owned and operated Incognito Market from October 2020 until its shutdown in March 2024, enabling hundreds of thousands of drug transactions across global networks. At sentencing, Clayton said Lin used the internet to distribute more than one ton of narcotics while earning millions and contributing to widespread harm, including at least one confirmed overdose death.
Incognito Market owner sentenced to 30 years. “Lin orchestrated more than $105 million in online sales of illegal drugs, harming hundreds of thousands,” said U.S. Attorney Jay Clayton.https://t.co/rR1rTZCViA
— US Attorney SDNY (@SDNYnews) February 3, 2026
Can advanced technology ever shield large-scale criminal networks from accountability in the digital age?
A Dark Web Marketplace With Global Reach
According to a recent DOJ press release, Incognito Market operated on the dark web and allowed access through the Tor browser to users across the world with internet connectivity. Lin ran the platform under the alias “Pharaoh” and controlled all decisions involving vendors, buyers, site policies, and technical operations.
Under his leadership, the marketplace grew to more than 400,000 buyer accounts and supported over 1,800 vendors, many of whom operated as established drug traffickers. Investigators said the platform facilitated more than 640,000 individual drug transactions during its four-year operation.
Sales included over 1,000 kilograms of cocaine, more than 1,000 kilograms of methamphetamine, hundreds of kilograms of other drugs, and pills sold as prescription medication. In January 2022, Lin approved a policy that allowed vendors to sell opiates, expanding the site’s listings to include drugs marketed as authentic pharmaceuticals.
Fentanyl Sales and a Fatal Overdose
Law enforcement later confirmed that some pills advertised as oxycodone contained fentanyl instead of the listed medication. In November 2023, an undercover agent purchased tablets from Incognito Market that testing later identified as fentanyl rather than oxycodone.
Authorities linked similar pills to the death of a 27-year-old Arkansas resident in September 2022 after he consumed drugs purchased on the platform.
Prosecutors stated that Lin authorized opiate sales, which allowed vendors to sell dangerous counterfeit drugs throughout the marketplace. The Incognito Market platform functioned like a genuine e-commerce website because it provided branding solutions, customer service, and dispute-resolution systems.
The prosecutors described this design as a tool that enabled users to conduct extensive drug transactions while their illegal activities remained hidden through common internet designs.
Related: Hackers Sell Gemini and Binance User Data on Darkweb: Report
Investigation, Forfeitures, and Broader Enforcement
According to court filings, investigators traced Incognito Market’s domain registration to Lin after he used his real name, phone number, and address during setup. Taiwanese media reported that Lin studied at National Taiwan University and later completed alternative civilian service in St. Lucia, where he worked in technical assistance roles.
During that period, reports said Lin sometimes taught local police about cybercrime and cryptocurrency investigations. The sentencing followed recent Justice Department actions against other darknet operations, including the finalized forfeiture of more than $400 million tied to the Helix crypto mixer.
On the other hand, other prosecutions are like Helix operator Larry Dean Harmon, who pleaded guilty in 2021 and received a three-year prison sentence in November 2024. Earlier cases included a June 2025 seizure of 145 domains and cryptocurrency linked to BidenCash, plus a 2023 recovery action targeting assets tied to New Jersey trafficker Christopher Castelluzzo.
The post Dark Web Incognito Market Operator Sentenced to 30 Years appeared first on Cryptotale.
The post Dark Web Incognito Market Operator Sentenced to 30 Years appeared first on Cryptotale.
SBI Startale Pushes Tokenized Stocks and FX Into On-chain Trading
SBI and Startale launched Strium to test on-chain trading for tokenized and FX assets.
The platform supports non-stop spot and derivatives markets without direct asset
Strium targets institutional capital markets through a permissioned blockchain design.
Startale Group and SBI Holdings have unveiled Strium Network, a joint venture platform aimed at building Asia’s exchange layer for tokenized securities and on-chain real-world assets. The announcement marks the first major milestone from their strategic partnership disclosed in August 2025. Strium introduces a platform vision focused on enabling trading and settlement for tokenized equities and RWA-linked instruments through a permissioned blockchain design.
The companies said a proof of concept now stands ready to demonstrate core capabilities and validate the platform’s institutional approach. The project combines SBI’s regulated financial infrastructure with Startale’s blockchain stack. Together, the partners aim to explore how traditional assets such as equities and foreign exchange can move on-chain without abandoning established institutional standards.
A Platform Built for Onchain Capital Markets
In the company’s blogpost, the partners said Strium represents a shared effort to develop a purpose-built exchange layer for tokenized securities. The design supports 24/7 spot and derivatives markets tied to equities and real-world assets.
Unlike crypto native perpetual platforms that focus on digital assets, Strium targets global capital markets through a blockchain-native exchange architecture. The platform avoids direct asset issuance or custody while aiming to support faster market formation and scalable global access.
Sota Watanabe, CEO of Startale Group, said tokenization remains an inevitable trend and described equities tokenization as the next major market. He added that Strium seeks to bridge off-chain finance and on-chain systems by enabling compliant dividend and royalty payments.
Institutional Reach and Market Structure Shift
Strium draws on SBI Holdings’ ecosystem of more than 80 million customers and its experience across securities, banking, and financial services. This positions the platform to connect institutional demand with professional trading activity and real-world market participation.
Its blockchain-native exchange architecture enables faster market formation, deeper liquidity and scalable global access independent of traditional banking hours. Drawing on SBI Holdings’ 80M+ customer network and deep expertise across securities, banking, and financial services,…
— Startale (@StartaleGroup) February 5, 2026
Startale Group said recent developments show growing momentum toward on-chain trading, real-time settlement, tokenized shareholder rights, and on-chain RWAs. In response, Strium enables securities-linked spot and derivatives markets that operate beyond traditional banking hours.
The platform enables ongoing trading operations through its native on-chain mechanisms, which provide accelerated price discovery and support expandable liquidity. The current system design demonstrates a general trend that enables trading systems to operate independently from traditional asset issuance restrictions while still connected to current financial networks.
Technical Roadmap and Regulatory Path
The current proof-of-concept phase focuses on settlement efficiency, system resilience under heavy transaction loads, and interoperability with both legacy systems and other blockchains. A public testnet stands as the next planned step toward commercial deployment.
Watanabe said SBI Holdings brings regulated infrastructure and multiple licensed entities into the venture. He noted prior participation by group companies in regulated digital asset initiatives, including a planned yen stablecoin structure involving Shinsei Trust & Banking and SBI VC Trade.
Related: SBI and Startale Plan Regulated Yen Stablecoin for 2026
He added that discussions with regulators, including in Japan, will take place as the project expands into individual markets. While no commercial launch date has been announced, the developers continue to prepare public testnets to refine scalability and compliance workflows.
Strium positions itself as the core exchange layer for Asia’s on-chain securities market, with an architecture designed to support future participation by AI agents executing strategies directly on-chain. Can regulated blockchain infrastructure support tokenized equities and FX at institutional scale without sacrificing control, transparency, and regulatory assurance?
The post SBI Startale Pushes Tokenized Stocks and FX Into On-chain Trading appeared first on Cryptotale.
The post SBI Startale Pushes Tokenized Stocks and FX Into On-chain Trading appeared first on Cryptotale.
The platform supports non-stop spot and derivatives markets without direct asset
Strium targets institutional capital markets through a permissioned blockchain design.
Startale Group and SBI Holdings have unveiled Strium Network, a joint venture platform aimed at building Asia’s exchange layer for tokenized securities and on-chain real-world assets. The announcement marks the first major milestone from their strategic partnership disclosed in August 2025. Strium introduces a platform vision focused on enabling trading and settlement for tokenized equities and RWA-linked instruments through a permissioned blockchain design.
The companies said a proof of concept now stands ready to demonstrate core capabilities and validate the platform’s institutional approach. The project combines SBI’s regulated financial infrastructure with Startale’s blockchain stack. Together, the partners aim to explore how traditional assets such as equities and foreign exchange can move on-chain without abandoning established institutional standards.
A Platform Built for Onchain Capital Markets
In the company’s blogpost, the partners said Strium represents a shared effort to develop a purpose-built exchange layer for tokenized securities. The design supports 24/7 spot and derivatives markets tied to equities and real-world assets.
Unlike crypto native perpetual platforms that focus on digital assets, Strium targets global capital markets through a blockchain-native exchange architecture. The platform avoids direct asset issuance or custody while aiming to support faster market formation and scalable global access.
Sota Watanabe, CEO of Startale Group, said tokenization remains an inevitable trend and described equities tokenization as the next major market. He added that Strium seeks to bridge off-chain finance and on-chain systems by enabling compliant dividend and royalty payments.
Institutional Reach and Market Structure Shift
Strium draws on SBI Holdings’ ecosystem of more than 80 million customers and its experience across securities, banking, and financial services. This positions the platform to connect institutional demand with professional trading activity and real-world market participation.
Its blockchain-native exchange architecture enables faster market formation, deeper liquidity and scalable global access independent of traditional banking hours. Drawing on SBI Holdings’ 80M+ customer network and deep expertise across securities, banking, and financial services,…
— Startale (@StartaleGroup) February 5, 2026
Startale Group said recent developments show growing momentum toward on-chain trading, real-time settlement, tokenized shareholder rights, and on-chain RWAs. In response, Strium enables securities-linked spot and derivatives markets that operate beyond traditional banking hours.
The platform enables ongoing trading operations through its native on-chain mechanisms, which provide accelerated price discovery and support expandable liquidity. The current system design demonstrates a general trend that enables trading systems to operate independently from traditional asset issuance restrictions while still connected to current financial networks.
Technical Roadmap and Regulatory Path
The current proof-of-concept phase focuses on settlement efficiency, system resilience under heavy transaction loads, and interoperability with both legacy systems and other blockchains. A public testnet stands as the next planned step toward commercial deployment.
Watanabe said SBI Holdings brings regulated infrastructure and multiple licensed entities into the venture. He noted prior participation by group companies in regulated digital asset initiatives, including a planned yen stablecoin structure involving Shinsei Trust & Banking and SBI VC Trade.
Related: SBI and Startale Plan Regulated Yen Stablecoin for 2026
He added that discussions with regulators, including in Japan, will take place as the project expands into individual markets. While no commercial launch date has been announced, the developers continue to prepare public testnets to refine scalability and compliance workflows.
Strium positions itself as the core exchange layer for Asia’s on-chain securities market, with an architecture designed to support future participation by AI agents executing strategies directly on-chain. Can regulated blockchain infrastructure support tokenized equities and FX at institutional scale without sacrificing control, transparency, and regulatory assurance?
The post SBI Startale Pushes Tokenized Stocks and FX Into On-chain Trading appeared first on Cryptotale.
The post SBI Startale Pushes Tokenized Stocks and FX Into On-chain Trading appeared first on Cryptotale.
Vitalik Signals New Path as Ethereum Layer One Expands Fast
Ethereum layer one scaling weakens the vision that placed layer two at the centre.
Base says layer two networks must evolve beyond lower fees to serve the ecosystem.
Vitalik supports native rollups and zero-knowledge systems as Ethereum capacity rises.
Ethereum’s co-founder Vitalik Buterin said recent developments have forced a reassessment of Layer 2 networks as Ethereum’s base layer scales faster than expected. He shared the view on X. In his post, Buterin pointed to two developments shaping the debate. He cited slower-than-expected progress toward stage 2 rollups. He also cited rapid Layer 1 scaling, low fees, and large gas limit increases projected for 2026.
There have recently been some discussions on the ongoing role of L2s in the Ethereum ecosystem, especially in the face of two facts:
* L2s' progress to stage 2 (and, secondarily, on interop) has been far slower and more difficult than originally expected
* L1 itself is scaling,…
— vitalik.eth (@VitalikButerin) February 3, 2026
Together, these shifts challenge the original rollup-centric roadmap. Buterin said the earlier vision of L2s no longer fits Ethereum’s current direction. The comments triggered immediate discussion across the ecosystem.
Vitalik Buterin Revisits the Original Rollup Vision
Buterin recapped Ethereum’s earlier scaling goal. He said Ethereum scaling meant creating large amounts of block space secured directly by Ethereum’s guarantees. This included validity, censorship resistance, and finality. He stated that systems relying on multisig bridges fail that definition. According to Buterin, a high-throughput chain loosely connected to Ethereum does not scale Ethereum itself.
He added that Layer 1 scaling now reduces the need for L2s as “branded shards.” Ethereum no longer depends on L2s to supply trusted block space. Instead, L1 itself continues to expand capacity.
Buterin also noted that some L2s do not plan to reach stage 2. He said regulatory needs push certain projects to retain control. He stated this approach may suit customers, but it does not align with Ethereum scaling. He concluded that this divergence is acceptable. Ethereum’s roadmap now includes direct L1 scaling with significant gas limit increases planned this year and beyond.
Jesse Pollak Responds With Base’s Position
Base co-founder Jesse Pollak responded publicly on X following Buterin’s comments. He said Ethereum scaling at L1 benefits the entire ecosystem. Pollak stated that L2s cannot succeed by offering lower fees alone. He said Base has focused on onboarding users, developers, and applications since launch.
it’s great to see ethereum scaling L1 – this is a win for the entire ecosystem.
going forward, L2s can’t just be “ethereum but cheaper.” that's why from the beginning of base we've shown up everyday to onboard new users, developers, and apps, push the technology forward, and do… https://t.co/1Sh2fwJHrY
— jesse.base.eth (@jessepollak) February 3, 2026
He added that Base works to grow Ethereum symbiotically. According to Pollak, this approach supports long-term ecosystem health rather than isolated gains.
Pollak said Base benefits from Ethereum’s security and infrastructure. This allows the team to focus on products and real-world use cases. He listed trading, social platforms, gaming, creators, and prediction markets. He also confirmed that Base reached stage 1 last year.
He said the team is accelerating work toward safely reaching stage 2 while addressing technical complexity. Pollak said Base will continue pursuing its mission. He described the goal as building a global economy that increases innovation, creativity, and freedom.
Related: Ethereum Adopts Austerity Framework to Safeguard Core Protocol
Native Rollups and ZK Technology Gain Attention
As Ethereum’s base layer strengthens, attention has shifted toward native rollups. These rollups integrate more deeply into the Ethereum protocol. Buterin has expressed growing support for native rollups. He has shown particular interest in zero-knowledge proof systems.
ZK-EVM development plays a central role in this shift. It could allow closer integration between rollups and Ethereum’s base layer. This approach aims to streamline scaling while preserving decentralization and security. Buterin has said this direction aligns better with Ethereum’s long-term goals. Pollak echoed support for cooperation. He said Base is leaning into differentiation, supported by the Ethereum Foundation.
He cited work on native account abstraction, privacy, and scaling. He said Base remains committed to working with Ethereum to build the onchain future. As Ethereum scales directly at Layer 1, will the ecosystem redefine how Layer 2 networks create value?
The post Vitalik Signals New Path as Ethereum Layer One Expands Fast appeared first on Cryptotale.
The post Vitalik Signals New Path as Ethereum Layer One Expands Fast appeared first on Cryptotale.
Base says layer two networks must evolve beyond lower fees to serve the ecosystem.
Vitalik supports native rollups and zero-knowledge systems as Ethereum capacity rises.
Ethereum’s co-founder Vitalik Buterin said recent developments have forced a reassessment of Layer 2 networks as Ethereum’s base layer scales faster than expected. He shared the view on X. In his post, Buterin pointed to two developments shaping the debate. He cited slower-than-expected progress toward stage 2 rollups. He also cited rapid Layer 1 scaling, low fees, and large gas limit increases projected for 2026.
There have recently been some discussions on the ongoing role of L2s in the Ethereum ecosystem, especially in the face of two facts:
* L2s' progress to stage 2 (and, secondarily, on interop) has been far slower and more difficult than originally expected
* L1 itself is scaling,…
— vitalik.eth (@VitalikButerin) February 3, 2026
Together, these shifts challenge the original rollup-centric roadmap. Buterin said the earlier vision of L2s no longer fits Ethereum’s current direction. The comments triggered immediate discussion across the ecosystem.
Vitalik Buterin Revisits the Original Rollup Vision
Buterin recapped Ethereum’s earlier scaling goal. He said Ethereum scaling meant creating large amounts of block space secured directly by Ethereum’s guarantees. This included validity, censorship resistance, and finality. He stated that systems relying on multisig bridges fail that definition. According to Buterin, a high-throughput chain loosely connected to Ethereum does not scale Ethereum itself.
He added that Layer 1 scaling now reduces the need for L2s as “branded shards.” Ethereum no longer depends on L2s to supply trusted block space. Instead, L1 itself continues to expand capacity.
Buterin also noted that some L2s do not plan to reach stage 2. He said regulatory needs push certain projects to retain control. He stated this approach may suit customers, but it does not align with Ethereum scaling. He concluded that this divergence is acceptable. Ethereum’s roadmap now includes direct L1 scaling with significant gas limit increases planned this year and beyond.
Jesse Pollak Responds With Base’s Position
Base co-founder Jesse Pollak responded publicly on X following Buterin’s comments. He said Ethereum scaling at L1 benefits the entire ecosystem. Pollak stated that L2s cannot succeed by offering lower fees alone. He said Base has focused on onboarding users, developers, and applications since launch.
it’s great to see ethereum scaling L1 – this is a win for the entire ecosystem.
going forward, L2s can’t just be “ethereum but cheaper.” that's why from the beginning of base we've shown up everyday to onboard new users, developers, and apps, push the technology forward, and do… https://t.co/1Sh2fwJHrY
— jesse.base.eth (@jessepollak) February 3, 2026
He added that Base works to grow Ethereum symbiotically. According to Pollak, this approach supports long-term ecosystem health rather than isolated gains.
Pollak said Base benefits from Ethereum’s security and infrastructure. This allows the team to focus on products and real-world use cases. He listed trading, social platforms, gaming, creators, and prediction markets. He also confirmed that Base reached stage 1 last year.
He said the team is accelerating work toward safely reaching stage 2 while addressing technical complexity. Pollak said Base will continue pursuing its mission. He described the goal as building a global economy that increases innovation, creativity, and freedom.
Related: Ethereum Adopts Austerity Framework to Safeguard Core Protocol
Native Rollups and ZK Technology Gain Attention
As Ethereum’s base layer strengthens, attention has shifted toward native rollups. These rollups integrate more deeply into the Ethereum protocol. Buterin has expressed growing support for native rollups. He has shown particular interest in zero-knowledge proof systems.
ZK-EVM development plays a central role in this shift. It could allow closer integration between rollups and Ethereum’s base layer. This approach aims to streamline scaling while preserving decentralization and security. Buterin has said this direction aligns better with Ethereum’s long-term goals. Pollak echoed support for cooperation. He said Base is leaning into differentiation, supported by the Ethereum Foundation.
He cited work on native account abstraction, privacy, and scaling. He said Base remains committed to working with Ethereum to build the onchain future. As Ethereum scales directly at Layer 1, will the ecosystem redefine how Layer 2 networks create value?
The post Vitalik Signals New Path as Ethereum Layer One Expands Fast appeared first on Cryptotale.
The post Vitalik Signals New Path as Ethereum Layer One Expands Fast appeared first on Cryptotale.
Galaxy Digital Posts Quarterly Loss Amid Crypto Market Slump
Galaxy Digital posted a 482 million dollar Q4 loss, driven by falling digital asset prices.
The Company’s Full-year losses totaled $241 million, including one-time operating costs.
By the end of the previous year, the company had $2.6 billion in stablecoins and cash.
Galaxy Digital posted a net loss of $482 million in the fourth quarter of 2025 as falling digital asset prices weighed on results. The firm also reported a $241 million loss for the full year, according to quarterly financial statements released Tuesday. Galaxy said lower cryptocurrency prices and one-time costs drove the losses, even as it reported strong adjusted gross profit and a sizeable cash position.
The company said digital asset depreciation accounted for most fourth-quarter losses. For the full year, Galaxy cited lower prices and about $160 million in one-time costs. Bitcoin fell about 20% during the fourth quarter of 2025, pressuring trading and investment activity.
Shares of the company traded near $22.60 as investors reviewed the results. Revenue reached $10.2 billion, which fell short of the $12 billion analysts expected. Adjusted earnings per share showed a loss of $1.08, compared with forecasts near a $0.99 loss.
Market Pressures and Executive Commentary
Galaxy CEO Michael Novogratz described the market backdrop as difficult during a shareholder update call on Tuesday. “You have the crypto coins — Bitcoin, Ethereum, Solana, you name ‘em — have been in a bear market,” Novogratz said. He added that long market cycles form a core feature of the digital asset sector.
Novogratz said Bitcoin trades near the lower end of its historical range. “I do think that we’re in the lower end of the range,” he told shareholders. He said industry participants often focus and prepare during periods of stress.
LATEST: MIKE Mike Novogratz’s Galaxy Digital posted a $482M net loss in Q4 2025, hit by falling crypto prices and $160M in one-time restructuring expenses.
Despite the loss, the firm delivered $426M in full-year adjusted gross profit and ended 2025 with $2.6B cash in-hand. pic.twitter.com/0jMw1uR7Z9
— Coin Bureau (@coinbureau) February 4, 2026
The broader market showed mixed movement following a recent crash. Bitcoin lost more than 2.5% in the last 24 hours, while Ether dropped 4.1%. Crypto equities traded slightly negative after earlier gains in pre-market trading.
Balance Sheet Strength and Business Activity
Despite losses, Galaxy reported an adjusted gross profit of $426 million for the full year 2025. The firm ended the year with $2.6 billion in cash and stablecoins. It also reported $12 billion in total platform assets.
Galaxy said its asset management arm recorded $2 billion in net inflows during 2025. The company attributed inflows to demand for diversified trading and advisory services. These services span trading, asset management, and institutional strategy support.
Can a strong balance sheet offset earnings pressure during an extended digital asset downturn? Galaxy pointed to liquidity as protection against market swings. The firm framed its capital position as support for ongoing operations and investment plans.
Related: Galaxy Digital Eyes Liquidity Role in Prediction Markets
Expansion Plans and Sector Comparisons
Galaxy said it continues to advance long-term diversification efforts. In August, the firm accelerated plans for an artificial intelligence data centre in Texas. In January, the Electric Reliability Council of Texas approved an extra 830 megawatts of power.
That approval raised total permitted capacity above 1.6 gigawatts. Galaxy said the project aligns with broader infrastructure expansion goals. The company linked the initiative to future revenue diversification.
Elsewhere in the sector, SoFi Technologies reported $1 billion in fourth-quarter revenue on Friday. Securitize Holdings said revenue rose more than 840% through September 2025. Securitize reported the increase as it prepared for an initial public offering.
The post Galaxy Digital Posts Quarterly Loss Amid Crypto Market Slump appeared first on Cryptotale.
The post Galaxy Digital Posts Quarterly Loss Amid Crypto Market Slump appeared first on Cryptotale.
The Company’s Full-year losses totaled $241 million, including one-time operating costs.
By the end of the previous year, the company had $2.6 billion in stablecoins and cash.
Galaxy Digital posted a net loss of $482 million in the fourth quarter of 2025 as falling digital asset prices weighed on results. The firm also reported a $241 million loss for the full year, according to quarterly financial statements released Tuesday. Galaxy said lower cryptocurrency prices and one-time costs drove the losses, even as it reported strong adjusted gross profit and a sizeable cash position.
The company said digital asset depreciation accounted for most fourth-quarter losses. For the full year, Galaxy cited lower prices and about $160 million in one-time costs. Bitcoin fell about 20% during the fourth quarter of 2025, pressuring trading and investment activity.
Shares of the company traded near $22.60 as investors reviewed the results. Revenue reached $10.2 billion, which fell short of the $12 billion analysts expected. Adjusted earnings per share showed a loss of $1.08, compared with forecasts near a $0.99 loss.
Market Pressures and Executive Commentary
Galaxy CEO Michael Novogratz described the market backdrop as difficult during a shareholder update call on Tuesday. “You have the crypto coins — Bitcoin, Ethereum, Solana, you name ‘em — have been in a bear market,” Novogratz said. He added that long market cycles form a core feature of the digital asset sector.
Novogratz said Bitcoin trades near the lower end of its historical range. “I do think that we’re in the lower end of the range,” he told shareholders. He said industry participants often focus and prepare during periods of stress.
LATEST: MIKE Mike Novogratz’s Galaxy Digital posted a $482M net loss in Q4 2025, hit by falling crypto prices and $160M in one-time restructuring expenses.
Despite the loss, the firm delivered $426M in full-year adjusted gross profit and ended 2025 with $2.6B cash in-hand. pic.twitter.com/0jMw1uR7Z9
— Coin Bureau (@coinbureau) February 4, 2026
The broader market showed mixed movement following a recent crash. Bitcoin lost more than 2.5% in the last 24 hours, while Ether dropped 4.1%. Crypto equities traded slightly negative after earlier gains in pre-market trading.
Balance Sheet Strength and Business Activity
Despite losses, Galaxy reported an adjusted gross profit of $426 million for the full year 2025. The firm ended the year with $2.6 billion in cash and stablecoins. It also reported $12 billion in total platform assets.
Galaxy said its asset management arm recorded $2 billion in net inflows during 2025. The company attributed inflows to demand for diversified trading and advisory services. These services span trading, asset management, and institutional strategy support.
Can a strong balance sheet offset earnings pressure during an extended digital asset downturn? Galaxy pointed to liquidity as protection against market swings. The firm framed its capital position as support for ongoing operations and investment plans.
Related: Galaxy Digital Eyes Liquidity Role in Prediction Markets
Expansion Plans and Sector Comparisons
Galaxy said it continues to advance long-term diversification efforts. In August, the firm accelerated plans for an artificial intelligence data centre in Texas. In January, the Electric Reliability Council of Texas approved an extra 830 megawatts of power.
That approval raised total permitted capacity above 1.6 gigawatts. Galaxy said the project aligns with broader infrastructure expansion goals. The company linked the initiative to future revenue diversification.
Elsewhere in the sector, SoFi Technologies reported $1 billion in fourth-quarter revenue on Friday. Securitize Holdings said revenue rose more than 840% through September 2025. Securitize reported the increase as it prepared for an initial public offering.
The post Galaxy Digital Posts Quarterly Loss Amid Crypto Market Slump appeared first on Cryptotale.
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WisdomTree Scales Tokenized Assets While Crypto Turns Core
WisdomTree scaled tokenized assets from 30 million to 750 million in one year alone.
CEO Jonathan Steinberg says crypto is core and aims for near-term profitability.
Strong ETF earnings fund digital expansion despite weak crypto market sentiment today.
WisdomTree has positioned cryptocurrency as a core business, not an experiment, as its digital asset unit moves closer to profitability, according to CEO Jonathan Steinberg. Speaking Tuesday at the Ondo Summit in New York, Steinberg said the firm now operates with long-term conviction in blockchain infrastructure. The asset manager oversees about $150 billion in assets and has scaled its tokenized offerings rapidly over the past year.
The shift reflects a broader strategic effort to build digital finance alongside its profitable exchange-traded fund business. The key question now is simple: how fast can scale turn conviction into sustainable profit?
Crypto Growth Moves From Pilot to Core Strategy
Steinberg said WisdomTree’s digital asset push now sits at the center of its strategy. He told attendees the firm plans to keep scaling its crypto operations after rapid asset growth. “We want to continue to scale,” Steinberg said during the fireside chat. He noted that tokenized assets rose from about $30 million last year to roughly $750 million.
He added that the business does not yet generate profit. Still, he said the firm remains “in line of sight of taking this to a profitable business,” signaling progress toward commercial viability.
WisdomTree has invested heavily in blockchain infrastructure. The firm launched tokenized funds and expanded support to new networks, including Solana. Steinberg said the effort reflects long-term belief rather than short-term market cycles. “It’s still early days, but it’s not an experiment now,” he said. “We have conviction.”
During its latest earnings presentation, the firm reported that total tokenized assets reached $770 million. That figure marked a 25-fold increase from 2024, reinforcing internal momentum.
Profitable ETF Business Funds the Digital Push
While crypto scales, the ETF business remains the primary profit engine. Last quarter, WisdomTree generated $40.0 million in net income. Adjusted earnings per share rose 71% year over year. Operating margins expanded by nearly 300 basis points, supported by $8.5 billion in net inflows. That performance lifted market confidence. The stock trades near $16.45 after the results, following a price target increase to $21.00 from Oppenheimer
WisdomTree moved early on blockchain infrastructure through its acquisition of Securrency. The firm later sold the compliance-focused tokenization company to the DTCC. Steinberg described the move as foundational. He said it enabled “compliance-aware tokens” and programmable finance across platforms. He framed crypto as broader than asset management. “This is bigger than asset management,” Steinberg said. “This is really about financial services.”
Related: SBI Deepens Ties With Chainlink to Power Tokenized Assets
Market Risks and Adoption Headwinds
The digital strategy carries clear risks. Crypto remains capital-intensive and does not yet contribute profits, despite sharp growth in tokenized assets. Market sentiment also remains weak. The Fear and Greed index stands at 17 out of 100, signaling extreme fear across crypto markets. Liquidity remains fragile as well. Crypto futures open interest holds near $110 billion, a multimonth low, increasing sensitivity to volatility, and slowing institutional adoption.
For now, WisdomTree’s statement that cryptocurrency is a core business underscores a strategic embrace of digital finance and reflects growing recognition of blockchain’s role in the future of investing. Investors and industry watchers will likely monitor how this commitment unfolds as market conditions and regulatory landscapes continue to change.
The post WisdomTree Scales Tokenized Assets While Crypto Turns Core appeared first on Cryptotale.
The post WisdomTree Scales Tokenized Assets While Crypto Turns Core appeared first on Cryptotale.
CEO Jonathan Steinberg says crypto is core and aims for near-term profitability.
Strong ETF earnings fund digital expansion despite weak crypto market sentiment today.
WisdomTree has positioned cryptocurrency as a core business, not an experiment, as its digital asset unit moves closer to profitability, according to CEO Jonathan Steinberg. Speaking Tuesday at the Ondo Summit in New York, Steinberg said the firm now operates with long-term conviction in blockchain infrastructure. The asset manager oversees about $150 billion in assets and has scaled its tokenized offerings rapidly over the past year.
The shift reflects a broader strategic effort to build digital finance alongside its profitable exchange-traded fund business. The key question now is simple: how fast can scale turn conviction into sustainable profit?
Crypto Growth Moves From Pilot to Core Strategy
Steinberg said WisdomTree’s digital asset push now sits at the center of its strategy. He told attendees the firm plans to keep scaling its crypto operations after rapid asset growth. “We want to continue to scale,” Steinberg said during the fireside chat. He noted that tokenized assets rose from about $30 million last year to roughly $750 million.
He added that the business does not yet generate profit. Still, he said the firm remains “in line of sight of taking this to a profitable business,” signaling progress toward commercial viability.
WisdomTree has invested heavily in blockchain infrastructure. The firm launched tokenized funds and expanded support to new networks, including Solana. Steinberg said the effort reflects long-term belief rather than short-term market cycles. “It’s still early days, but it’s not an experiment now,” he said. “We have conviction.”
During its latest earnings presentation, the firm reported that total tokenized assets reached $770 million. That figure marked a 25-fold increase from 2024, reinforcing internal momentum.
Profitable ETF Business Funds the Digital Push
While crypto scales, the ETF business remains the primary profit engine. Last quarter, WisdomTree generated $40.0 million in net income. Adjusted earnings per share rose 71% year over year. Operating margins expanded by nearly 300 basis points, supported by $8.5 billion in net inflows. That performance lifted market confidence. The stock trades near $16.45 after the results, following a price target increase to $21.00 from Oppenheimer
WisdomTree moved early on blockchain infrastructure through its acquisition of Securrency. The firm later sold the compliance-focused tokenization company to the DTCC. Steinberg described the move as foundational. He said it enabled “compliance-aware tokens” and programmable finance across platforms. He framed crypto as broader than asset management. “This is bigger than asset management,” Steinberg said. “This is really about financial services.”
Related: SBI Deepens Ties With Chainlink to Power Tokenized Assets
Market Risks and Adoption Headwinds
The digital strategy carries clear risks. Crypto remains capital-intensive and does not yet contribute profits, despite sharp growth in tokenized assets. Market sentiment also remains weak. The Fear and Greed index stands at 17 out of 100, signaling extreme fear across crypto markets. Liquidity remains fragile as well. Crypto futures open interest holds near $110 billion, a multimonth low, increasing sensitivity to volatility, and slowing institutional adoption.
For now, WisdomTree’s statement that cryptocurrency is a core business underscores a strategic embrace of digital finance and reflects growing recognition of blockchain’s role in the future of investing. Investors and industry watchers will likely monitor how this commitment unfolds as market conditions and regulatory landscapes continue to change.
The post WisdomTree Scales Tokenized Assets While Crypto Turns Core appeared first on Cryptotale.
The post WisdomTree Scales Tokenized Assets While Crypto Turns Core appeared first on Cryptotale.
Ripple Custody Powers $280M Diamond Tokenization on XRP Ledger
Diamond firms move $280M in polished stones onto XRPL through Ripple Custody
On-chain records now secure grading origin and ownership for the UAE-based diamond trade
XRPL tokenization expands as regulatory clearance shapes the platform’s next phase
Billiton Diamond and Ctrl Alt have shifted more than $280 million worth of certified polished diamonds onto the XRP Ledger, pushing tightly managed commodities into a digital environment that promises clearer provenance and faster settlement.
The move places over AED 1 billion in physical stones under Ripple custody, with each diamond tied to a token minted on-chain and backed by recorded certification data. The companies described the system less as a flashy experiment and more as an industrial pipeline built for traders who deal in high-value stones every day.
Ripple is proud to support Billiton Diamond and @CtrlAltCo who have tokenized over AED 1 billion ($280m) of certified polished diamonds on the XRPL.
This initiative shows how @Ripple's technology can bridge the gap between physical assets and the digital economy, utilising our…
— Reece Merrick (@reece_merrick) February 3, 2026
Each token reflects an individual diamond stored in the UAE, allowing buyers and brokers to trace grading, origin, and ownership history before completing any transaction. Still, the initiative remains in a preparatory phase, with wider rollout dependent on approval from Dubai’s Virtual Assets Regulatory Authority.
Diamonds Shift to an On-Chain Framework
Based on reports, Ctrl Alt is running the full tokenization process, minting tokens on the XRP Ledger and anchoring physical inventory through a verification layer supported by Ripple Custody. That combination creates a shared record for market participants, who can inspect stone metadata in real time rather than depend on separate documentation trails.
Billiton Diamond, on the other hand, which has long operated with a Vickrey auction model for price discovery, said the leap to on-chain systems aims to bring post-polishing transparency to a segment of the market that often lags in traceability. Executives noted that blockchain does not rewrite auction mechanics but strengthens how information follows a stone once it has entered commercial trade.
Regulatory Clearance Defines the Next Stretch
The partners acknowledged that the broader platform is not yet open for distribution. Any expansion hinges on VARA’s regulatory sign-off, a requirement that has shaped nearly every digital-asset rollout in Dubai. For now, however, the infrastructure is in place, and the technical rails are functioning, but the commercial layer remains parked until regulators complete their assessment.
Ripple’s joint efforts with Ctrl Alt date back to mid-2025 and followed Ctrl Alt’s involvement in the Dubai Land Department’s asset digitization initiative. The firm has since grown its valuation to roughly $348 million, supported by rising interest in regulated tokenization across real estate and commodities markets.
Industry Links Support the Tokenization Push
Dubai’s shift toward blockchain-based commodity infrastructure has involved coordinated work among the Dubai Multi Commodities Centre, technology firms, and traders. Therefore, the diamond project fits into that emerging ecosystem.
Officials familiar with the process said the aim is to create frameworks that can support large-scale tokenization without disrupting established commodity flows. The forthcoming platform is expected to provide real-time inventory tracking tied directly to on-chain entries.
Certification records will travel with each token, giving traders a clearer picture of what they are acquiring before moving to settlement. The partners believe this structure will cut down on reconciliation tasks that typically slow cross-border diamond transactions.
Related: Tether Launches MiningOS to Open Bitcoin Mining Infrastructure
XRPL’s Tokenization Growth Sets the Backdrop
The initiative arrives during a period of strong tokenization growth on the XRP Ledger. Aggregate data shows tokenized assets on the network rising from $24.7 million in early 2025 to about $567.9 million by year-end, a nearly 2,000 percent increase. As of this reporting, XRPL’s represented asset value was nearing $1.5 billion, while real-world asset tokens sat at around $220 million.
Ripple also reported that its RLUSD stablecoin has reached roughly $1.3 billion in circulation, alongside about $500 million in tokenized assets held on the chain more broadly. With Billiton Diamond and Ctrl Alt now adding $280 million in polished stones to that base, the project stands out as one of the largest commodity-linked deployments on XRPL to date.
Executives involved in the rollout said the reliance on Ripple Custody signals a growing comfort with securing high-value physical assets at an institutional scale. They framed the venture as a step toward more efficient commodity markets, backed by verifiable records that follow each stone across every trade.
The post Ripple Custody Powers $280M Diamond Tokenization on XRP Ledger appeared first on Cryptotale.
The post Ripple Custody Powers $280M Diamond Tokenization on XRP Ledger appeared first on Cryptotale.
On-chain records now secure grading origin and ownership for the UAE-based diamond trade
XRPL tokenization expands as regulatory clearance shapes the platform’s next phase
Billiton Diamond and Ctrl Alt have shifted more than $280 million worth of certified polished diamonds onto the XRP Ledger, pushing tightly managed commodities into a digital environment that promises clearer provenance and faster settlement.
The move places over AED 1 billion in physical stones under Ripple custody, with each diamond tied to a token minted on-chain and backed by recorded certification data. The companies described the system less as a flashy experiment and more as an industrial pipeline built for traders who deal in high-value stones every day.
Ripple is proud to support Billiton Diamond and @CtrlAltCo who have tokenized over AED 1 billion ($280m) of certified polished diamonds on the XRPL.
This initiative shows how @Ripple's technology can bridge the gap between physical assets and the digital economy, utilising our…
— Reece Merrick (@reece_merrick) February 3, 2026
Each token reflects an individual diamond stored in the UAE, allowing buyers and brokers to trace grading, origin, and ownership history before completing any transaction. Still, the initiative remains in a preparatory phase, with wider rollout dependent on approval from Dubai’s Virtual Assets Regulatory Authority.
Diamonds Shift to an On-Chain Framework
Based on reports, Ctrl Alt is running the full tokenization process, minting tokens on the XRP Ledger and anchoring physical inventory through a verification layer supported by Ripple Custody. That combination creates a shared record for market participants, who can inspect stone metadata in real time rather than depend on separate documentation trails.
Billiton Diamond, on the other hand, which has long operated with a Vickrey auction model for price discovery, said the leap to on-chain systems aims to bring post-polishing transparency to a segment of the market that often lags in traceability. Executives noted that blockchain does not rewrite auction mechanics but strengthens how information follows a stone once it has entered commercial trade.
Regulatory Clearance Defines the Next Stretch
The partners acknowledged that the broader platform is not yet open for distribution. Any expansion hinges on VARA’s regulatory sign-off, a requirement that has shaped nearly every digital-asset rollout in Dubai. For now, however, the infrastructure is in place, and the technical rails are functioning, but the commercial layer remains parked until regulators complete their assessment.
Ripple’s joint efforts with Ctrl Alt date back to mid-2025 and followed Ctrl Alt’s involvement in the Dubai Land Department’s asset digitization initiative. The firm has since grown its valuation to roughly $348 million, supported by rising interest in regulated tokenization across real estate and commodities markets.
Industry Links Support the Tokenization Push
Dubai’s shift toward blockchain-based commodity infrastructure has involved coordinated work among the Dubai Multi Commodities Centre, technology firms, and traders. Therefore, the diamond project fits into that emerging ecosystem.
Officials familiar with the process said the aim is to create frameworks that can support large-scale tokenization without disrupting established commodity flows. The forthcoming platform is expected to provide real-time inventory tracking tied directly to on-chain entries.
Certification records will travel with each token, giving traders a clearer picture of what they are acquiring before moving to settlement. The partners believe this structure will cut down on reconciliation tasks that typically slow cross-border diamond transactions.
Related: Tether Launches MiningOS to Open Bitcoin Mining Infrastructure
XRPL’s Tokenization Growth Sets the Backdrop
The initiative arrives during a period of strong tokenization growth on the XRP Ledger. Aggregate data shows tokenized assets on the network rising from $24.7 million in early 2025 to about $567.9 million by year-end, a nearly 2,000 percent increase. As of this reporting, XRPL’s represented asset value was nearing $1.5 billion, while real-world asset tokens sat at around $220 million.
Ripple also reported that its RLUSD stablecoin has reached roughly $1.3 billion in circulation, alongside about $500 million in tokenized assets held on the chain more broadly. With Billiton Diamond and Ctrl Alt now adding $280 million in polished stones to that base, the project stands out as one of the largest commodity-linked deployments on XRPL to date.
Executives involved in the rollout said the reliance on Ripple Custody signals a growing comfort with securing high-value physical assets at an institutional scale. They framed the venture as a step toward more efficient commodity markets, backed by verifiable records that follow each stone across every trade.
The post Ripple Custody Powers $280M Diamond Tokenization on XRP Ledger appeared first on Cryptotale.
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Tether Launches MiningOS to Open Bitcoin Mining Infrastructure
MiningOS launches as an open source platform built to serve home miners and large firms.
MiningOS uses peer-to-peer networks to manage mining fleets without centralized platforms.
Tether expands its role in Bitcoin infrastructure through open software and a clear vision.
Tether has introduced MiningOS, known as MOS, an open-source operating system designed to support Bitcoin mining operations across different scales. The company said the platform targets both individual miners and large institutions seeking flexible and transparent software to manage mining infrastructure without proprietary restrictions. MOS arrives as a modular and scalable system that allows operators to control hardware and performance tools without relying on centralized third-party services or closed software environments.
Bitcoin Mining is complex.
Mining OS by Tether (MOS) makes it simple.
Introducing MOS — the open-source operating system for real mining infrastructure.
Modular. Scalable. Built for energy + hardware + data.
Explore the Documentation: https://t.co/3zcBHFFzRp
Join our… pic.twitter.com/G0GwbtfLKT
— Tether (@tether) February 2, 2026
Tether described the release as part of its broader involvement in crypto infrastructure, extending beyond stablecoin issuance into mining software, network support, and long-term system resilience. The system seeks to remove what the company called the “black box” structure of many mining setups, where monitoring tools and hardware remain locked into vendor-controlled platforms.
Can open-source mining software reshape how Bitcoin infrastructure develops over the next decade?
MiningOS Focuses on Transparency and Control
MOS operates through a self-hosted architecture that communicates with mining devices using an integrated peer-to-peer network built on Holepunch protocols. According to Tether, this design allows miners to manage operations independently, without routing data through centralized cloud services or external management platforms.
The system allows configuration changes through a companion interface that adapts to different operational scales, from small home setups to large multi-site mining facilities. Tether stated that MiningOS carries no vendor lock-in and remains free of third-party dependencies under the Apache 2.0 open-source license.
The company said the goal centers on collaboration and openness while giving operators direct visibility into fleet health, efficiency, and revenue performance. Paolo Ardoino described MOS as a complete operational platform that can scale from a single mining rig to industrial-grade operations spanning multiple geographies.
Open-Source Aligns With Broader Industry Moves
Tether first previewed plans for an open-source mining operating system in June last year, positioning MOS as a tool for new miners entering a competitive environment. The company argued that miners should not depend on expensive software vendors to compete in an industry shaped by rising difficulty and operational pressure.
The MiningOS release places Tether alongside other firms promoting open-source mining infrastructure, including initiatives supported by Block. Tether framed the project as a software-focused investment rather than a shift toward hardware ownership or direct operational expansion.
Related: Tether Quietly Evolves Into a Global Shadow Banking Power
Although the company reduced some mining activities in late 2025 due to higher energy costs, MOS centers on long-term infrastructure development rather than short-term capacity growth. The company also supports mining projects that prioritize operational efficiency and renewable energy use to maintain network sustainability.
Infrastructure Expansion Extends Beyond Mining
Tether expands its financial infrastructure operations throughout emerging markets through its partnerships, which extend beyond the MiningOS platform. The company established a new partnership with Opera, which enables MiniPay wallet users to access USDT and tokenized gold XAUT through their platform.
The MiniPay system operates across 60 countries, has an active wallet base of 12.6 million users, and saw a 50% growth in the fourth quarter. This was made possible due to an expanding user base in emerging markets.
MiniPay enables users to access dollar-backed digital assets, which can be used for various purposes in regions with volatile currencies. Ardoino explained that the initiative serves Tether’s purpose of creating value preservation instruments that users can trust throughout Africa, Latin America, and Southeast Asia.
Tether Bitcoin
Tether Mining OS is now fully opensource.
A complete operational platform that can scale from a home setup to industrial grade site, even across multiple geographies.
Super modular, P2P encrypted networking layer.
It supports a long list of miners,… https://t.co/VzXywA6IZc
— Paolo Ardoino (@paoloardoino) February 2, 2026
Tether acquired 96,185 BTC by early 2026, approximately $8 billion, making Tether one of the biggest Bitcoin corporate holders worldwide. Tether achieved a net profit of $10 billion in 2025, indicating its crypto infrastructure, tokenization growth, and artificial intelligence and decentralized finance.
The post Tether Launches MiningOS to Open Bitcoin Mining Infrastructure appeared first on Cryptotale.
The post Tether Launches MiningOS to Open Bitcoin Mining Infrastructure appeared first on Cryptotale.
MiningOS uses peer-to-peer networks to manage mining fleets without centralized platforms.
Tether expands its role in Bitcoin infrastructure through open software and a clear vision.
Tether has introduced MiningOS, known as MOS, an open-source operating system designed to support Bitcoin mining operations across different scales. The company said the platform targets both individual miners and large institutions seeking flexible and transparent software to manage mining infrastructure without proprietary restrictions. MOS arrives as a modular and scalable system that allows operators to control hardware and performance tools without relying on centralized third-party services or closed software environments.
Bitcoin Mining is complex.
Mining OS by Tether (MOS) makes it simple.
Introducing MOS — the open-source operating system for real mining infrastructure.
Modular. Scalable. Built for energy + hardware + data.
Explore the Documentation: https://t.co/3zcBHFFzRp
Join our… pic.twitter.com/G0GwbtfLKT
— Tether (@tether) February 2, 2026
Tether described the release as part of its broader involvement in crypto infrastructure, extending beyond stablecoin issuance into mining software, network support, and long-term system resilience. The system seeks to remove what the company called the “black box” structure of many mining setups, where monitoring tools and hardware remain locked into vendor-controlled platforms.
Can open-source mining software reshape how Bitcoin infrastructure develops over the next decade?
MiningOS Focuses on Transparency and Control
MOS operates through a self-hosted architecture that communicates with mining devices using an integrated peer-to-peer network built on Holepunch protocols. According to Tether, this design allows miners to manage operations independently, without routing data through centralized cloud services or external management platforms.
The system allows configuration changes through a companion interface that adapts to different operational scales, from small home setups to large multi-site mining facilities. Tether stated that MiningOS carries no vendor lock-in and remains free of third-party dependencies under the Apache 2.0 open-source license.
The company said the goal centers on collaboration and openness while giving operators direct visibility into fleet health, efficiency, and revenue performance. Paolo Ardoino described MOS as a complete operational platform that can scale from a single mining rig to industrial-grade operations spanning multiple geographies.
Open-Source Aligns With Broader Industry Moves
Tether first previewed plans for an open-source mining operating system in June last year, positioning MOS as a tool for new miners entering a competitive environment. The company argued that miners should not depend on expensive software vendors to compete in an industry shaped by rising difficulty and operational pressure.
The MiningOS release places Tether alongside other firms promoting open-source mining infrastructure, including initiatives supported by Block. Tether framed the project as a software-focused investment rather than a shift toward hardware ownership or direct operational expansion.
Related: Tether Quietly Evolves Into a Global Shadow Banking Power
Although the company reduced some mining activities in late 2025 due to higher energy costs, MOS centers on long-term infrastructure development rather than short-term capacity growth. The company also supports mining projects that prioritize operational efficiency and renewable energy use to maintain network sustainability.
Infrastructure Expansion Extends Beyond Mining
Tether expands its financial infrastructure operations throughout emerging markets through its partnerships, which extend beyond the MiningOS platform. The company established a new partnership with Opera, which enables MiniPay wallet users to access USDT and tokenized gold XAUT through their platform.
The MiniPay system operates across 60 countries, has an active wallet base of 12.6 million users, and saw a 50% growth in the fourth quarter. This was made possible due to an expanding user base in emerging markets.
MiniPay enables users to access dollar-backed digital assets, which can be used for various purposes in regions with volatile currencies. Ardoino explained that the initiative serves Tether’s purpose of creating value preservation instruments that users can trust throughout Africa, Latin America, and Southeast Asia.
Tether Bitcoin
Tether Mining OS is now fully opensource.
A complete operational platform that can scale from a home setup to industrial grade site, even across multiple geographies.
Super modular, P2P encrypted networking layer.
It supports a long list of miners,… https://t.co/VzXywA6IZc
— Paolo Ardoino (@paoloardoino) February 2, 2026
Tether acquired 96,185 BTC by early 2026, approximately $8 billion, making Tether one of the biggest Bitcoin corporate holders worldwide. Tether achieved a net profit of $10 billion in 2025, indicating its crypto infrastructure, tokenization growth, and artificial intelligence and decentralized finance.
The post Tether Launches MiningOS to Open Bitcoin Mining Infrastructure appeared first on Cryptotale.
The post Tether Launches MiningOS to Open Bitcoin Mining Infrastructure appeared first on Cryptotale.
GENIUS Act Faces Scrutiny as New York Flags Stablecoin Risk
Prosecutors argue the GENIUS Act legitimizes stablecoins without firm fraud defenses.
New York officials link stablecoin use to most illicit crypto activity in 2025 globally.
Tether and Circle policies draw focus as victims face delays in fund recovery efforts.
New York’s top prosecutors have warned that the GENIUS Act, the crypto industry’s first major U.S. law, fails to protect fraud victims and risks shielding companies that profit from wrongdoing. In a letter obtained by CNN, New York Attorney General Letitia James and four district attorneys, including Manhattan’s Alvin Bragg, argued that the law grants stablecoins unwarranted legitimacy.
They said the statute allows stablecoin issuers to avoid key regulatory duties needed to fight terrorism financing, drug trafficking, money laundering, and cryptocurrency fraud, raising fresh questions about consumer protection.
At the center of the dispute sits the GENIUS Act, signed into law in July as a bipartisan effort to regulate stablecoins. The law requires issuers to back each coin one-for-one with liquid assets like dollars or short-term Treasuries, mirroring bank-style reserve rules.
JUST IN: PROSECUTORS SOUND ALARM ON THE GENIUS ACT
New York Attorney General Letitia James and four district attorneys warn the GENIUS Act could “provide legal cover” for stablecoin fraud, per CNN.
They accuse Tether and Circle of being incentivized not to fully cooperate… pic.twitter.com/hGCCNsoS4c
— Coin Bureau (@coinbureau) February 2, 2026
Yet prosecutors argue that reserve requirements alone do not address how criminals use stablecoins at scale, especially across borders. If stablecoins now carry federal legitimacy, who bears responsibility when fraud victims cannot recover their losses?
Prosecutors Cite Illicit Finance Risks
New York prosecutors pointed to stablecoins’ growing role in illicit finance as a central weakness in the new framework. They cited a 2025 report from Chainalysis, which estimated that 84% of illicit crypto transaction volume involved stablecoins.
According to the letter, criminals favour stablecoins for cross-border transfers and lower volatility, which makes funds easier to move quickly. Prosecutors argued that the GENIUS Act lacks fraud prevention and restitution provisions that exist in traditional finance.
They said those gaps leave victims with limited recourse, even as stablecoins integrate further into mainstream financial activity. The letter warned that without stronger obligations, issuers can operate while sidestepping enforcement tools that authorities rely on in other markets.
Tether and Circle Face Scrutiny
The letter singled out Tether and Circle, the two largest stablecoin issuers by market value. Prosecutors said both firms earn interest on reserves that can include stolen customer funds, since they hold cash and yield-bearing Treasuries.
They noted that Tether has frozen stolen funds in some cases, though it claims no legal duty to comply with U.S. state processes. In a statement to The Block, Tether said it takes fraud and consumer harm seriously. Tether said it is not U.S.-domiciled and operates outside U.S. jurisdiction, yet it added that it voluntarily works with U.S. law enforcement at all levels.
Prosecutors described Circle as less responsive, saying it freezes funds only after receiving a signed judicial order or warrant. They warned that delays allow criminals to move or convert funds before authorities can act.
Circle executive Dante Disparte said the company prioritizes compliance with global and U.S. stablecoin regulations.
Related: FDIC Proposes First Stablecoin Rule Under GENIUS Act
Consumer Protection Questions Persist
For critics, the prosecutors’ letter reflects broader concerns about consumer safeguards in crypto markets. American University law professor Hilary J. Allen told CNN that basic protections common in traditional finance remain absent from the GENIUS Act.
She said traditional financial laws already addressed many risks, and the conflict stemmed from crypto business models rather than technology itself. Prosecutors echoed that view by warning that legitimacy without accountability could deepen harm to fraud victims.
They urged lawmakers to reconsider whether the current framework truly matches the risks now tied to stablecoins.
The post GENIUS Act Faces Scrutiny as New York Flags Stablecoin Risk appeared first on Cryptotale.
The post GENIUS Act Faces Scrutiny as New York Flags Stablecoin Risk appeared first on Cryptotale.
New York officials link stablecoin use to most illicit crypto activity in 2025 globally.
Tether and Circle policies draw focus as victims face delays in fund recovery efforts.
New York’s top prosecutors have warned that the GENIUS Act, the crypto industry’s first major U.S. law, fails to protect fraud victims and risks shielding companies that profit from wrongdoing. In a letter obtained by CNN, New York Attorney General Letitia James and four district attorneys, including Manhattan’s Alvin Bragg, argued that the law grants stablecoins unwarranted legitimacy.
They said the statute allows stablecoin issuers to avoid key regulatory duties needed to fight terrorism financing, drug trafficking, money laundering, and cryptocurrency fraud, raising fresh questions about consumer protection.
At the center of the dispute sits the GENIUS Act, signed into law in July as a bipartisan effort to regulate stablecoins. The law requires issuers to back each coin one-for-one with liquid assets like dollars or short-term Treasuries, mirroring bank-style reserve rules.
JUST IN: PROSECUTORS SOUND ALARM ON THE GENIUS ACT
New York Attorney General Letitia James and four district attorneys warn the GENIUS Act could “provide legal cover” for stablecoin fraud, per CNN.
They accuse Tether and Circle of being incentivized not to fully cooperate… pic.twitter.com/hGCCNsoS4c
— Coin Bureau (@coinbureau) February 2, 2026
Yet prosecutors argue that reserve requirements alone do not address how criminals use stablecoins at scale, especially across borders. If stablecoins now carry federal legitimacy, who bears responsibility when fraud victims cannot recover their losses?
Prosecutors Cite Illicit Finance Risks
New York prosecutors pointed to stablecoins’ growing role in illicit finance as a central weakness in the new framework. They cited a 2025 report from Chainalysis, which estimated that 84% of illicit crypto transaction volume involved stablecoins.
According to the letter, criminals favour stablecoins for cross-border transfers and lower volatility, which makes funds easier to move quickly. Prosecutors argued that the GENIUS Act lacks fraud prevention and restitution provisions that exist in traditional finance.
They said those gaps leave victims with limited recourse, even as stablecoins integrate further into mainstream financial activity. The letter warned that without stronger obligations, issuers can operate while sidestepping enforcement tools that authorities rely on in other markets.
Tether and Circle Face Scrutiny
The letter singled out Tether and Circle, the two largest stablecoin issuers by market value. Prosecutors said both firms earn interest on reserves that can include stolen customer funds, since they hold cash and yield-bearing Treasuries.
They noted that Tether has frozen stolen funds in some cases, though it claims no legal duty to comply with U.S. state processes. In a statement to The Block, Tether said it takes fraud and consumer harm seriously. Tether said it is not U.S.-domiciled and operates outside U.S. jurisdiction, yet it added that it voluntarily works with U.S. law enforcement at all levels.
Prosecutors described Circle as less responsive, saying it freezes funds only after receiving a signed judicial order or warrant. They warned that delays allow criminals to move or convert funds before authorities can act.
Circle executive Dante Disparte said the company prioritizes compliance with global and U.S. stablecoin regulations.
Related: FDIC Proposes First Stablecoin Rule Under GENIUS Act
Consumer Protection Questions Persist
For critics, the prosecutors’ letter reflects broader concerns about consumer safeguards in crypto markets. American University law professor Hilary J. Allen told CNN that basic protections common in traditional finance remain absent from the GENIUS Act.
She said traditional financial laws already addressed many risks, and the conflict stemmed from crypto business models rather than technology itself. Prosecutors echoed that view by warning that legitimacy without accountability could deepen harm to fraud victims.
They urged lawmakers to reconsider whether the current framework truly matches the risks now tied to stablecoins.
The post GENIUS Act Faces Scrutiny as New York Flags Stablecoin Risk appeared first on Cryptotale.
The post GENIUS Act Faces Scrutiny as New York Flags Stablecoin Risk appeared first on Cryptotale.
Cboe Eyes Regulated All-Or-None Options For Event Trading
Cboe studies all-or-none options as regulated tools for fast-growing event trading.
Prediction markets post volumes as platforms expand into politics, sports, and worldwide.
Cboe reviews modern binary designs under US oversight, with talks still at early stages.
Cboe Global Markets has confirmed it is developing an options-based product with all-or-none payouts, a move that could place it against fast-growing prediction markets. The exchange has entered early discussions with brokerages and market makers on product mechanics, according to a Wall Street Journal report, while no launch timeline exists.
Cboe already dominates listed options trading and created the Cboe Volatility Index, or VIX, which anchors its reputation within traditional derivatives markets. At the same time, event-driven trading demand has surged. Platforms that offer simple outcome contracts now attract both retail and professional traders seeking defined risk structures.
Prediction markets typically price contracts between $0.01 and $0.99 and settle at $1 for the correct outcome, creating clear payouts without multi-leg strategies. The Cboe has presented its project as an experimental initiative while indicating its intent to create a regulated exchange to meet growing market demand.
Prediction Markets Reach Record Volumes
Prediction markets have established themselves as a major force across three domains, which include politics, sports, and macroeconomic events. The Block reported that Kalshi and Polymarket together achieved a total trading volume of $17 billion during January.
Source: The Block
That total marked a record month and followed several consecutive periods of growth across the sector. Research firms have taken note. Galaxy Research described prediction markets as entering a new phase of mainstream visibility and capital formation, while pointing to ongoing liquidity constraints.
Major trading platforms have developed their operations to approach the cryptocurrency market. Coinbase established a new prediction market through its collaboration with Kalshi, which enables retail users to access its trading platform. Established exchanges now examine event-based contracts because they present a regulated alternative to traditional trading methods.
Cboe Revisits Binary Options With a Modern Lens
Cboe has previous experience with binary-style instruments. In 2008, it launched binary call options tied to the S&P 500 and VIX. Those products allowed traders to bet on whether indexes closed above specific levels, yet adoption lagged, and Cboe later delisted them.
According to a person familiar with the discussions, the current effort does not revive those earlier contracts. Instead, Cboe is exploring updated structures that focus on clearer terms, improved access, and broader appeal for both retail and institutional traders.
Any new listing would operate under U.S. securities or derivatives oversight, separating it from offshore or lightly regulated prediction platforms. Cboe is also speaking with market makers to support execution, according to the WSJ, as it considers applying traditional exchange infrastructure to event-based trading.
Related: Cboe to List Continuous Bitcoin, Ether Futures from November
Would traders favour the flexibility of prediction markets or the regulatory clarity of an exchange-listed contract? Retailers maintain an active presence in options markets because individual investors create substantial daily trading volume. The group shows strong interest in simple outcome contracts, which Cboe now studies for their potential to develop products that maintain their current value payouts while removing all complex elements.
The current stage of discussions remains at introductory levels because both parties need to obtain regulatory approval for any future development work.
The post Cboe Eyes Regulated All-Or-None Options For Event Trading appeared first on Cryptotale.
The post Cboe Eyes Regulated All-Or-None Options For Event Trading appeared first on Cryptotale.
Prediction markets post volumes as platforms expand into politics, sports, and worldwide.
Cboe reviews modern binary designs under US oversight, with talks still at early stages.
Cboe Global Markets has confirmed it is developing an options-based product with all-or-none payouts, a move that could place it against fast-growing prediction markets. The exchange has entered early discussions with brokerages and market makers on product mechanics, according to a Wall Street Journal report, while no launch timeline exists.
Cboe already dominates listed options trading and created the Cboe Volatility Index, or VIX, which anchors its reputation within traditional derivatives markets. At the same time, event-driven trading demand has surged. Platforms that offer simple outcome contracts now attract both retail and professional traders seeking defined risk structures.
Prediction markets typically price contracts between $0.01 and $0.99 and settle at $1 for the correct outcome, creating clear payouts without multi-leg strategies. The Cboe has presented its project as an experimental initiative while indicating its intent to create a regulated exchange to meet growing market demand.
Prediction Markets Reach Record Volumes
Prediction markets have established themselves as a major force across three domains, which include politics, sports, and macroeconomic events. The Block reported that Kalshi and Polymarket together achieved a total trading volume of $17 billion during January.
Source: The Block
That total marked a record month and followed several consecutive periods of growth across the sector. Research firms have taken note. Galaxy Research described prediction markets as entering a new phase of mainstream visibility and capital formation, while pointing to ongoing liquidity constraints.
Major trading platforms have developed their operations to approach the cryptocurrency market. Coinbase established a new prediction market through its collaboration with Kalshi, which enables retail users to access its trading platform. Established exchanges now examine event-based contracts because they present a regulated alternative to traditional trading methods.
Cboe Revisits Binary Options With a Modern Lens
Cboe has previous experience with binary-style instruments. In 2008, it launched binary call options tied to the S&P 500 and VIX. Those products allowed traders to bet on whether indexes closed above specific levels, yet adoption lagged, and Cboe later delisted them.
According to a person familiar with the discussions, the current effort does not revive those earlier contracts. Instead, Cboe is exploring updated structures that focus on clearer terms, improved access, and broader appeal for both retail and institutional traders.
Any new listing would operate under U.S. securities or derivatives oversight, separating it from offshore or lightly regulated prediction platforms. Cboe is also speaking with market makers to support execution, according to the WSJ, as it considers applying traditional exchange infrastructure to event-based trading.
Related: Cboe to List Continuous Bitcoin, Ether Futures from November
Would traders favour the flexibility of prediction markets or the regulatory clarity of an exchange-listed contract? Retailers maintain an active presence in options markets because individual investors create substantial daily trading volume. The group shows strong interest in simple outcome contracts, which Cboe now studies for their potential to develop products that maintain their current value payouts while removing all complex elements.
The current stage of discussions remains at introductory levels because both parties need to obtain regulatory approval for any future development work.
The post Cboe Eyes Regulated All-Or-None Options For Event Trading appeared first on Cryptotale.
The post Cboe Eyes Regulated All-Or-None Options For Event Trading appeared first on Cryptotale.
India Tightens Crypto Disclosure Rules Starting April 2026
India introduces daily fines for crypto platforms that miss required transaction filings.
Misreported crypto data now triggers a fixed financial penalty under new tax rules.
The budget keeps crypto tax rates unchanged while expanding reporting enforcement.
India’s Union Budget for 2026 sets out new penalties for the cryptocurrency sector, tightening rules around how platforms report transaction data. The changes target exchanges and other intermediaries that handle crypto assets and fall under existing tax reporting laws. The Finance Bill 2026 amendments present the proposed measures. The implementation of the Income Tax Act 2025, which replaces the previous tax system, creates the new tax regulations. The new penalty system will begin on April 1, 2026.
NEW: Govt announces new penalties for crypto sector in 2026 budget.
Crypto platforms must now report transactions properly, or face fines:
• ₹200 per day for non-filing
• ₹50,000 for misreporting
Rules apply from April 1, 2026
— Crypto India (@CryptooIndia) February 1, 2026
The update centres its focus on establishing reporting standards. Authorities require crypto platforms to submit exact transaction reports without delay, while they must fix all identified mistakes. The current system establishes immediate monetary penalties for noncompliance.
The government maintains its existing taxation system for cryptocurrency profits. The government has concentrated its efforts on enforcing laws and monitoring reporting practices.
Daily Fines and Fixed Charges Explained
The proposal applies to reporting entities covered under Section 509 of the Income Tax Act. These entities must furnish statements linked to crypto-asset transactions within the prescribed period.
When a required statement is not filed, the law imposes a penalty of ₹200 per day. The amount continues to accrue for as long as the default persists. There is no grace period once the obligation lapses. A separate penalty applies to incorrect disclosures. Filing inaccurate information or failing to correct errors after notification attracts a flat fine of ₹50,000.
These provisions are set out through amendments to Section 446 of the Act. The Memorandum Explaining the Provisions in the Finance Bill states that the objective is to strengthen compliance and discourage incomplete reporting. Together, the two penalties address both delay and accuracy. Platforms now face higher costs if they miss deadlines or submit flawed data.
Reporting Tightens While Taxes Stay Fixed
The authorities have strengthened enforcement procedures, which require reporting, yet the overall cryptocurrency tax framework remains the same. India maintains its tax system by applying a standard 30% tax rate to all profits generated from cryptocurrency transactions.
The 1% tax deducted at source on crypto trades also remains in place. Industry participants have repeatedly said this framework affects liquidity and pushes activity outside India.
The decision to leave taxes untouched disappointed parts of the domestic crypto sector. Several firms had expected some recalibration after months of engagement with policymakers. Market participants say the gap between rising compliance demands and unchanged tax burdens remains unresolved.
Related: India and EU Deal Could Shift Crypto Liquidity and Flows
Industry Reaction Reflects Uneven Impact
Reactions across the crypto industry have varied. Business leaders view the penalties as a means to establish a better understanding of regulatory requirements. The defined reporting duties and their associated penalties establish a basis that crypto platforms must follow to meet existing financial reporting standards. The regulated structured disclosures enable regulators to monitor operational activities through their complete record of activities.
Others focus on what the budget did not change. They note that existing tax rates and TDS rules continue to apply even as reporting obligations expand. “The current tax framework presents challenges for retail participants by taxing transactions without recognising losses,” Ashish Singhal, co-founder of CoinSwitch, said in an email.
He added that reducing TDS on virtual digital asset transactions from 1% to 0.01% could improve liquidity and ease compliance. Singhal also said raising the TDS threshold to ₹5 lakh would protect smaller investors. As the new penalties approach implementation, crypto platforms face tighter reporting rules under a tax structure that remains firmly in place.
The post India Tightens Crypto Disclosure Rules Starting April 2026 appeared first on Cryptotale.
The post India Tightens Crypto Disclosure Rules Starting April 2026 appeared first on Cryptotale.
Misreported crypto data now triggers a fixed financial penalty under new tax rules.
The budget keeps crypto tax rates unchanged while expanding reporting enforcement.
India’s Union Budget for 2026 sets out new penalties for the cryptocurrency sector, tightening rules around how platforms report transaction data. The changes target exchanges and other intermediaries that handle crypto assets and fall under existing tax reporting laws. The Finance Bill 2026 amendments present the proposed measures. The implementation of the Income Tax Act 2025, which replaces the previous tax system, creates the new tax regulations. The new penalty system will begin on April 1, 2026.
NEW: Govt announces new penalties for crypto sector in 2026 budget.
Crypto platforms must now report transactions properly, or face fines:
• ₹200 per day for non-filing
• ₹50,000 for misreporting
Rules apply from April 1, 2026
— Crypto India (@CryptooIndia) February 1, 2026
The update centres its focus on establishing reporting standards. Authorities require crypto platforms to submit exact transaction reports without delay, while they must fix all identified mistakes. The current system establishes immediate monetary penalties for noncompliance.
The government maintains its existing taxation system for cryptocurrency profits. The government has concentrated its efforts on enforcing laws and monitoring reporting practices.
Daily Fines and Fixed Charges Explained
The proposal applies to reporting entities covered under Section 509 of the Income Tax Act. These entities must furnish statements linked to crypto-asset transactions within the prescribed period.
When a required statement is not filed, the law imposes a penalty of ₹200 per day. The amount continues to accrue for as long as the default persists. There is no grace period once the obligation lapses. A separate penalty applies to incorrect disclosures. Filing inaccurate information or failing to correct errors after notification attracts a flat fine of ₹50,000.
These provisions are set out through amendments to Section 446 of the Act. The Memorandum Explaining the Provisions in the Finance Bill states that the objective is to strengthen compliance and discourage incomplete reporting. Together, the two penalties address both delay and accuracy. Platforms now face higher costs if they miss deadlines or submit flawed data.
Reporting Tightens While Taxes Stay Fixed
The authorities have strengthened enforcement procedures, which require reporting, yet the overall cryptocurrency tax framework remains the same. India maintains its tax system by applying a standard 30% tax rate to all profits generated from cryptocurrency transactions.
The 1% tax deducted at source on crypto trades also remains in place. Industry participants have repeatedly said this framework affects liquidity and pushes activity outside India.
The decision to leave taxes untouched disappointed parts of the domestic crypto sector. Several firms had expected some recalibration after months of engagement with policymakers. Market participants say the gap between rising compliance demands and unchanged tax burdens remains unresolved.
Related: India and EU Deal Could Shift Crypto Liquidity and Flows
Industry Reaction Reflects Uneven Impact
Reactions across the crypto industry have varied. Business leaders view the penalties as a means to establish a better understanding of regulatory requirements. The defined reporting duties and their associated penalties establish a basis that crypto platforms must follow to meet existing financial reporting standards. The regulated structured disclosures enable regulators to monitor operational activities through their complete record of activities.
Others focus on what the budget did not change. They note that existing tax rates and TDS rules continue to apply even as reporting obligations expand. “The current tax framework presents challenges for retail participants by taxing transactions without recognising losses,” Ashish Singhal, co-founder of CoinSwitch, said in an email.
He added that reducing TDS on virtual digital asset transactions from 1% to 0.01% could improve liquidity and ease compliance. Singhal also said raising the TDS threshold to ₹5 lakh would protect smaller investors. As the new penalties approach implementation, crypto platforms face tighter reporting rules under a tax structure that remains firmly in place.
The post India Tightens Crypto Disclosure Rules Starting April 2026 appeared first on Cryptotale.
The post India Tightens Crypto Disclosure Rules Starting April 2026 appeared first on Cryptotale.
Visa and Mastercard Say Stablecoins Struggle to Win Daily-Use Adoption
Visa and Mastercard say stablecoins lack real demand for everyday consumer payments.
Executives say cards and bank transfers already meet daily payment needs in developed markets.
Stablecoins gain traction in cross-border and B2B use, while retail payments remain limited.
Executives at Visa and Mastercard are pushing back on one of crypto’s most persistent narratives: that stablecoins are close to breaking into everyday consumer payments. In recent earnings calls and investor briefings, leaders at both companies said the technology has yet to show convincing traction at checkout, especially in developed markets.
VISA & MASTERCARD: STABLECOINS NOT READY
Visa and Mastercard say stablecoins lack product-market fit for everyday payments, especially in developed markets.
They’re testing blockchain rails, but see crypto as mostly trading, not a consumer threat. pic.twitter.com/Gskf7XUUOS
— Coin Bureau (@coinbureau) January 30, 2026
The message was not dismissive, but it was firm. While blockchain rails continue to evolve and experimentation remains active, neither network sees stablecoins meaningfully displacing cards or bank-linked payments for routine purchases. For most consumers, executives said, the existing system already works well enough.
Why Daily Payments Remain a Tough Sell
Visa’s leadership stressed that convenience is the core issue. Consumers in markets such as the United States and Europe already have seamless options for paying digitally, whether through debit cards, credit cards, or instant bank transfers.
From that perspective, stablecoins do not solve an urgent problem for the average shopper. Executives noted that if consumers want to pay with a “digital dollar,” they can already do so through established financial rails without needing blockchain wallets or crypto custody.
This abundance of alternatives, they said, limits incentives to adopt stablecoins for groceries, transport, or retail purchases. As a result, Visa does not currently see strong momentum for crypto-native payments at the point of sale.
Mastercard’s Infrastructure-First Approach
Mastercard struck a more open but still cautious tone. Chief executive Michael Miebach said the company is “leaning in” to emerging technologies, including stablecoins and artificial intelligence tools. However, he positioned the firm as an enabler rather than a disruptor.
For Mastercard, stablecoins are treated as another form of currency that can be supported within its network, not a replacement for cards. The company has worked with crypto wallets and firms such as MetaMask, Ripple, and Gemini, primarily enabling asset purchases, settlements, and backend transactions.
“For us, stablecoins are another currency we can support within our network… We’ve made good traction, enabling the purchase of these assets, facilitating transactions, and supporting stablecoins for settlement over our network.”
Even so, executives emphasized that trading and investment activity still dominate crypto usage, not everyday consumer payments.
Where Stablecoins Are Actually Growing
However, outside of consumer retail, stablecoins are gaining ground. According to Artemis research, card-linked crypto spending tied to stablecoins is estimated to be nearing $18 billion on an annualized basis, driven by broader merchant acceptance and blockchain-powered settlement tools.
The more durable growth, analysts say, is in business-to-business payments, treasury operations, and cross-border transfers. In those areas, stablecoins offer tangible advantages. Transactions can settle faster, costs are often lower, and the systems operate continuously rather than on banking hours.
A September report from JP Morgan further described stablecoins as a digital form of fiat money that is fast and efficient for cross-border movement. At the same time, the bank cautioned about systemic risks, pointing to the 2022 collapse of TerraUSD as evidence of how quickly confidence can unravel.
Related: Bybit Stages Market Recovery in 2025 Despite Record Crypto Hack
Blockchain Scale Versus Consumer Reality
Both payment networks have invested in blockchain infrastructure. Mastercard has tested on-chain identity and settlement tools. Visa, on the other hand, has run pilots using USDC for settlement. Still, neither company views crypto as an immediate threat to its core business.
That stance sits alongside striking blockchain data. According to Glassnode, Bitcoin settled more than $25 trillion in transactions in 2025, exceeding the combined volumes processed by Visa and Mastercard. Executives caution, however, that those figures reflect large transfers and trading activity rather than consumer spending.
For now, both companies are drawing the same conclusion. Stablecoins may be finding their footing in wholesale finance and cross-border flows, but at the point of sale, everyday habits remain firmly rooted in the existing payments system.
The post Visa and Mastercard Say Stablecoins Struggle to Win Daily-Use Adoption appeared first on Cryptotale.
The post Visa and Mastercard Say Stablecoins Struggle to Win Daily-Use Adoption appeared first on Cryptotale.
Executives say cards and bank transfers already meet daily payment needs in developed markets.
Stablecoins gain traction in cross-border and B2B use, while retail payments remain limited.
Executives at Visa and Mastercard are pushing back on one of crypto’s most persistent narratives: that stablecoins are close to breaking into everyday consumer payments. In recent earnings calls and investor briefings, leaders at both companies said the technology has yet to show convincing traction at checkout, especially in developed markets.
VISA & MASTERCARD: STABLECOINS NOT READY
Visa and Mastercard say stablecoins lack product-market fit for everyday payments, especially in developed markets.
They’re testing blockchain rails, but see crypto as mostly trading, not a consumer threat. pic.twitter.com/Gskf7XUUOS
— Coin Bureau (@coinbureau) January 30, 2026
The message was not dismissive, but it was firm. While blockchain rails continue to evolve and experimentation remains active, neither network sees stablecoins meaningfully displacing cards or bank-linked payments for routine purchases. For most consumers, executives said, the existing system already works well enough.
Why Daily Payments Remain a Tough Sell
Visa’s leadership stressed that convenience is the core issue. Consumers in markets such as the United States and Europe already have seamless options for paying digitally, whether through debit cards, credit cards, or instant bank transfers.
From that perspective, stablecoins do not solve an urgent problem for the average shopper. Executives noted that if consumers want to pay with a “digital dollar,” they can already do so through established financial rails without needing blockchain wallets or crypto custody.
This abundance of alternatives, they said, limits incentives to adopt stablecoins for groceries, transport, or retail purchases. As a result, Visa does not currently see strong momentum for crypto-native payments at the point of sale.
Mastercard’s Infrastructure-First Approach
Mastercard struck a more open but still cautious tone. Chief executive Michael Miebach said the company is “leaning in” to emerging technologies, including stablecoins and artificial intelligence tools. However, he positioned the firm as an enabler rather than a disruptor.
For Mastercard, stablecoins are treated as another form of currency that can be supported within its network, not a replacement for cards. The company has worked with crypto wallets and firms such as MetaMask, Ripple, and Gemini, primarily enabling asset purchases, settlements, and backend transactions.
“For us, stablecoins are another currency we can support within our network… We’ve made good traction, enabling the purchase of these assets, facilitating transactions, and supporting stablecoins for settlement over our network.”
Even so, executives emphasized that trading and investment activity still dominate crypto usage, not everyday consumer payments.
Where Stablecoins Are Actually Growing
However, outside of consumer retail, stablecoins are gaining ground. According to Artemis research, card-linked crypto spending tied to stablecoins is estimated to be nearing $18 billion on an annualized basis, driven by broader merchant acceptance and blockchain-powered settlement tools.
The more durable growth, analysts say, is in business-to-business payments, treasury operations, and cross-border transfers. In those areas, stablecoins offer tangible advantages. Transactions can settle faster, costs are often lower, and the systems operate continuously rather than on banking hours.
A September report from JP Morgan further described stablecoins as a digital form of fiat money that is fast and efficient for cross-border movement. At the same time, the bank cautioned about systemic risks, pointing to the 2022 collapse of TerraUSD as evidence of how quickly confidence can unravel.
Related: Bybit Stages Market Recovery in 2025 Despite Record Crypto Hack
Blockchain Scale Versus Consumer Reality
Both payment networks have invested in blockchain infrastructure. Mastercard has tested on-chain identity and settlement tools. Visa, on the other hand, has run pilots using USDC for settlement. Still, neither company views crypto as an immediate threat to its core business.
That stance sits alongside striking blockchain data. According to Glassnode, Bitcoin settled more than $25 trillion in transactions in 2025, exceeding the combined volumes processed by Visa and Mastercard. Executives caution, however, that those figures reflect large transfers and trading activity rather than consumer spending.
For now, both companies are drawing the same conclusion. Stablecoins may be finding their footing in wholesale finance and cross-border flows, but at the point of sale, everyday habits remain firmly rooted in the existing payments system.
The post Visa and Mastercard Say Stablecoins Struggle to Win Daily-Use Adoption appeared first on Cryptotale.
The post Visa and Mastercard Say Stablecoins Struggle to Win Daily-Use Adoption appeared first on Cryptotale.
Tether Quietly Evolves Into a Global Shadow Banking Power
Tether posted over $10 billion in profit in 2025 as USDT supply surged worldwide.
Treasury holdings climbed above $100 billion, placing Tether among the top holders.
Gold and bitcoin reserves grew fast, pushing Tether into global financial relevance.
Tether ended 2025 with more than $10 billion in net profit as USDT supply surged and reserves expanded sharply into U.S. Treasuries, gold, and bitcoin. The figures show a stablecoin issuer now operating at a global financial scale. The company reported the results on Friday through a fourth-quarter attestation signed by BDO Italy.
The report showed $6.3 billion in excess reserves above $186.5 billion in liabilities tied to issued tokens. USDT supply expanded by $50 billion during the year and crossed $186 billion in circulation. The growth reinforced USDT’s position as the most widely used digital dollar in crypto markets.
Treasury Exposure Reaches Sovereign Scale
Tether continued increasing exposure to U.S. government debt throughout 2025. Direct holdings of U.S. Treasuries reached $122 billion by year’s end. When including overnight reverse repurchase agreements, total Treasury exposure rose to $141 billion. This scale places Tether among the world’s largest holders of U.S. government debt.
TETHER REPORTS $10B+ NET PROFITS IN Q4 2025
Tether published its Q4 2025 attestation, reporting over $10 billion in net profits, $6.3 billion in excess reserves, and U.S. Treasury exposure exceeding $141 billion, underscoring the scale and profitability of its reserve… pic.twitter.com/tqYZgPszag
— Crypto Town Hall (@Crypto_TownHall) January 31, 2026
Such exposure gives the firm a growing presence in short-term funding markets. These markets have traditionally relied on banks,s money market funds, and central banks. The reserve strategy differs from most stablecoin issuers. Tether invests a large share of reserves in Treasury bills rather than holding only cash equivalents.
Transparency reports show Treasuries now represent more than 80 percent of USDT backing. The holdings exceed the Treasury exposure of several sovereign states.
Gold and Bitcoin Add Reserve Depth
Beyond government debt, Tether maintained large allocations to gold and bitcoin. The company reported $17.4 billion in gold holdings and $8.4 billion in bitcoin. Gold accumulation accelerated during the year. Tether bought physical gold at a pace of up to two tons per week, according to a Bloomberg interview with CEO Paolo Ardoino.
At that rat,e purchases could exceed $1 billion each month. By late 202,5 total gold holdings reached about 140 metric tons valued near $24 billion. Reuters reported that executives described the gold strategy as similar to central bank reserve management. The shift marked a move toward active asset diversification.
Bitcoin exposure added another layer to reserves. The allocation linked Tether more closely to digital asset markets while maintaining dollar liquidity through USDT.
A Hybrid Financial Intermediary Emerges
Tether also reported a separate investment portfolio valued at $20 billion. The portfolio remains distinct from assets backing issued tokens. “With USDT issuance at record levels, reserves exceeding liabilities by billions of dollars, Treasury exposure at historic highs, and strong risk management, Tether enters 2026 with one of the strongest balance sheets of any global company,” said CEO Paolo Ardoino.
Related: Tether Unveils USA₮, Its First Fully Regulated U.S. Dollar Stablecoin
The report arrived as global demand for stablecoins continued rising. USDT remained the dominant digital dollar across exchanges and payment rails. Earlier this week, Tether launched USAT, a new U.S.-focused stablecoin. The product was developed with Anchorage Digital a federally chartered crypto bank.
The launch marked a move toward regulatory-compliant operations in the United States. At the same time, stablecoin rules remain unsettled across major jurisdictions. Proposed frameworks such as the U.S. GENIUS Act seek to align stablecoins with traditional finance. Still, Tether’s model has expanded faster than regulation.
As USDT functions across payments trading and reserves, one question remains unresolved. Can a private stablecoin issuer hold such scale without bank-level oversight?
The post Tether Quietly Evolves Into a Global Shadow Banking Power appeared first on Cryptotale.
The post Tether Quietly Evolves Into a Global Shadow Banking Power appeared first on Cryptotale.
Treasury holdings climbed above $100 billion, placing Tether among the top holders.
Gold and bitcoin reserves grew fast, pushing Tether into global financial relevance.
Tether ended 2025 with more than $10 billion in net profit as USDT supply surged and reserves expanded sharply into U.S. Treasuries, gold, and bitcoin. The figures show a stablecoin issuer now operating at a global financial scale. The company reported the results on Friday through a fourth-quarter attestation signed by BDO Italy.
The report showed $6.3 billion in excess reserves above $186.5 billion in liabilities tied to issued tokens. USDT supply expanded by $50 billion during the year and crossed $186 billion in circulation. The growth reinforced USDT’s position as the most widely used digital dollar in crypto markets.
Treasury Exposure Reaches Sovereign Scale
Tether continued increasing exposure to U.S. government debt throughout 2025. Direct holdings of U.S. Treasuries reached $122 billion by year’s end. When including overnight reverse repurchase agreements, total Treasury exposure rose to $141 billion. This scale places Tether among the world’s largest holders of U.S. government debt.
TETHER REPORTS $10B+ NET PROFITS IN Q4 2025
Tether published its Q4 2025 attestation, reporting over $10 billion in net profits, $6.3 billion in excess reserves, and U.S. Treasury exposure exceeding $141 billion, underscoring the scale and profitability of its reserve… pic.twitter.com/tqYZgPszag
— Crypto Town Hall (@Crypto_TownHall) January 31, 2026
Such exposure gives the firm a growing presence in short-term funding markets. These markets have traditionally relied on banks,s money market funds, and central banks. The reserve strategy differs from most stablecoin issuers. Tether invests a large share of reserves in Treasury bills rather than holding only cash equivalents.
Transparency reports show Treasuries now represent more than 80 percent of USDT backing. The holdings exceed the Treasury exposure of several sovereign states.
Gold and Bitcoin Add Reserve Depth
Beyond government debt, Tether maintained large allocations to gold and bitcoin. The company reported $17.4 billion in gold holdings and $8.4 billion in bitcoin. Gold accumulation accelerated during the year. Tether bought physical gold at a pace of up to two tons per week, according to a Bloomberg interview with CEO Paolo Ardoino.
At that rat,e purchases could exceed $1 billion each month. By late 202,5 total gold holdings reached about 140 metric tons valued near $24 billion. Reuters reported that executives described the gold strategy as similar to central bank reserve management. The shift marked a move toward active asset diversification.
Bitcoin exposure added another layer to reserves. The allocation linked Tether more closely to digital asset markets while maintaining dollar liquidity through USDT.
A Hybrid Financial Intermediary Emerges
Tether also reported a separate investment portfolio valued at $20 billion. The portfolio remains distinct from assets backing issued tokens. “With USDT issuance at record levels, reserves exceeding liabilities by billions of dollars, Treasury exposure at historic highs, and strong risk management, Tether enters 2026 with one of the strongest balance sheets of any global company,” said CEO Paolo Ardoino.
Related: Tether Unveils USA₮, Its First Fully Regulated U.S. Dollar Stablecoin
The report arrived as global demand for stablecoins continued rising. USDT remained the dominant digital dollar across exchanges and payment rails. Earlier this week, Tether launched USAT, a new U.S.-focused stablecoin. The product was developed with Anchorage Digital a federally chartered crypto bank.
The launch marked a move toward regulatory-compliant operations in the United States. At the same time, stablecoin rules remain unsettled across major jurisdictions. Proposed frameworks such as the U.S. GENIUS Act seek to align stablecoins with traditional finance. Still, Tether’s model has expanded faster than regulation.
As USDT functions across payments trading and reserves, one question remains unresolved. Can a private stablecoin issuer hold such scale without bank-level oversight?
The post Tether Quietly Evolves Into a Global Shadow Banking Power appeared first on Cryptotale.
The post Tether Quietly Evolves Into a Global Shadow Banking Power appeared first on Cryptotale.
Bybit Stages Market Recovery in 2025 Despite Record Crypto Hack
Bybit posted $1.5T trading volume in 2025 after recovering from the largest crypto hack.
Its market share dropped to 6% in March then rose steadily as liquidity support stayed active.
CoinGecko ranked Bybit second globally showing trust recovery after an exchange breach.
Bybit ranked second among centralized crypto exchanges in 2025 after recovering from a $1.5 billion hack, as trading volumes rebounded and market share steadily improved, according to CoinGecko data. The exchange processed $1.5 trillion in spot trading volume during the year and captured 8.1% of the market, research analyst Shaun Paul Lee said in a Thursday report. The recovery followed a February 2025 cyberattack, the largest crypto hack on record, which initially cut Bybit’s market share sharply before a gradual rebound through the rest of the year.
Bybit’s Recovery After the February Hack
The February attack targeted Bybit’s cold wallet infrastructure and resulted in the loss of $1.5 billion worth of Ether, according to details cited in the CoinGecko report. Investigators linked the breach to North Korean attackers, making the incident the largest known theft in the crypto sector to date.
In the weeks after the hack, Bybit’s market share dropped to 6% in March from 10% in February, reflecting immediate user caution and reduced trading activity. Still, the research said Bybit kept withdrawals open and honored all user transactions during the crisis, which helped stabilize activity.
Bybit CEO Ben Zhou also appeared publicly to address concerns and said the exchange held enough reserves to cover losses and planned to secure liquidity through external support. CoinGecko noted that these measures supported a slow recovery, allowing Bybit to regain trading volume and user confidence across 2025.
Market Position by December 2025
By December 2025, Bybit ranked as the second-largest centralized exchange by spot trading volume, according to CoinGecko. The exchange recorded $90.0 billion in spot volume during the month and held a 9.5% market share.
That figure marked a 16.7% decline from November, when Bybit posted $108.1 billion in volume, reflecting weaker overall market conditions. Despite the monthly drop, CoinGecko said Bybit maintained its second-place position for the year overall.
Shaun Paul Lee wrote that Bybit “clawed its way back to the top” and “slowly gained back its dominance throughout 2025.” The data positioned Bybit behind Binance but ahead of other major competitors in total annual activity.
Exchange Competition and Industry Context
Binance remained the largest centralized exchange in December 2025, holding 38.3% of total spot trading volume. Its trading volume fell from $609.0 billion in November to $361.8 billion in December, a 40.6% decline tied to broader market weakness. The data attributed the downturn to bearish sentiment following a major liquidation event on October 10.
For the full year, Binance processed $7.3 trillion in volume and controlled 39.2% of the top ten exchanges’ total activity, which reached $18.7 trillion. However, Binance’s annual volume slipped 0.5% year on year, showing limited growth despite its market leadership.
MEXC ranked third in December with $86.0 billion in spot volume and a 9.1% market share, CoinGecko said. It also recorded the fastest growth in 2025, with trading volume rising 90.9% year on year to $1.5 trillion, up from $766.7 billion in 2024.
Related: Circle and Bybit Advance Global Stablecoin Adoption With USDC
CoinGecko linked MEXC’s growth to its zero-fee spot trading policy, which attracted high-frequency traders and retail users. Overall, six of the top ten exchanges saw volume growth in 2025, while total top ten trading volume rose 7.6% for the year.
Immunefi CEO Mitchell Amador said that nearly 80% of hacked projects never fully recover due to operational breakdowns and lost trust. Against that backdrop, the data raises a key question: can crisis response and liquidity management determine which exchanges survive major security failures?
The post Bybit Stages Market Recovery in 2025 Despite Record Crypto Hack appeared first on Cryptotale.
The post Bybit Stages Market Recovery in 2025 Despite Record Crypto Hack appeared first on Cryptotale.
Its market share dropped to 6% in March then rose steadily as liquidity support stayed active.
CoinGecko ranked Bybit second globally showing trust recovery after an exchange breach.
Bybit ranked second among centralized crypto exchanges in 2025 after recovering from a $1.5 billion hack, as trading volumes rebounded and market share steadily improved, according to CoinGecko data. The exchange processed $1.5 trillion in spot trading volume during the year and captured 8.1% of the market, research analyst Shaun Paul Lee said in a Thursday report. The recovery followed a February 2025 cyberattack, the largest crypto hack on record, which initially cut Bybit’s market share sharply before a gradual rebound through the rest of the year.
Bybit’s Recovery After the February Hack
The February attack targeted Bybit’s cold wallet infrastructure and resulted in the loss of $1.5 billion worth of Ether, according to details cited in the CoinGecko report. Investigators linked the breach to North Korean attackers, making the incident the largest known theft in the crypto sector to date.
In the weeks after the hack, Bybit’s market share dropped to 6% in March from 10% in February, reflecting immediate user caution and reduced trading activity. Still, the research said Bybit kept withdrawals open and honored all user transactions during the crisis, which helped stabilize activity.
Bybit CEO Ben Zhou also appeared publicly to address concerns and said the exchange held enough reserves to cover losses and planned to secure liquidity through external support. CoinGecko noted that these measures supported a slow recovery, allowing Bybit to regain trading volume and user confidence across 2025.
Market Position by December 2025
By December 2025, Bybit ranked as the second-largest centralized exchange by spot trading volume, according to CoinGecko. The exchange recorded $90.0 billion in spot volume during the month and held a 9.5% market share.
That figure marked a 16.7% decline from November, when Bybit posted $108.1 billion in volume, reflecting weaker overall market conditions. Despite the monthly drop, CoinGecko said Bybit maintained its second-place position for the year overall.
Shaun Paul Lee wrote that Bybit “clawed its way back to the top” and “slowly gained back its dominance throughout 2025.” The data positioned Bybit behind Binance but ahead of other major competitors in total annual activity.
Exchange Competition and Industry Context
Binance remained the largest centralized exchange in December 2025, holding 38.3% of total spot trading volume. Its trading volume fell from $609.0 billion in November to $361.8 billion in December, a 40.6% decline tied to broader market weakness. The data attributed the downturn to bearish sentiment following a major liquidation event on October 10.
For the full year, Binance processed $7.3 trillion in volume and controlled 39.2% of the top ten exchanges’ total activity, which reached $18.7 trillion. However, Binance’s annual volume slipped 0.5% year on year, showing limited growth despite its market leadership.
MEXC ranked third in December with $86.0 billion in spot volume and a 9.1% market share, CoinGecko said. It also recorded the fastest growth in 2025, with trading volume rising 90.9% year on year to $1.5 trillion, up from $766.7 billion in 2024.
Related: Circle and Bybit Advance Global Stablecoin Adoption With USDC
CoinGecko linked MEXC’s growth to its zero-fee spot trading policy, which attracted high-frequency traders and retail users. Overall, six of the top ten exchanges saw volume growth in 2025, while total top ten trading volume rose 7.6% for the year.
Immunefi CEO Mitchell Amador said that nearly 80% of hacked projects never fully recover due to operational breakdowns and lost trust. Against that backdrop, the data raises a key question: can crisis response and liquidity management determine which exchanges survive major security failures?
The post Bybit Stages Market Recovery in 2025 Despite Record Crypto Hack appeared first on Cryptotale.
The post Bybit Stages Market Recovery in 2025 Despite Record Crypto Hack appeared first on Cryptotale.
Senate Panel Advances Market Structure Bill in Narrow Party-Line Vote
Senate Agriculture Committee advanced a crypto market structure bill on a 12–11 party-line vote.
The bill would expand CFTC authority over digital commodities and spot crypto markets.
Senate Banking Committee approval is still required before the measure reaches the full Senate.
A closely divided vote in Washington marked a turning point for U.S. cryptocurrency regulation, as lawmakers moved a long-debated market structure proposal forward for the first time. The development signals growing pressure on Congress to establish clear rules for digital assets amid years of regulatory overlap, court battles, and industry uncertainty.
BREAKING: The Senate Agriculture Committee approves its portion of the digital asset market structure bill, part of the Clarity Act, on a 12–11 party-line vote.
The measure now moves forward as lawmakers work toward final passage. pic.twitter.com/SQ7EpZDpX5
— Bitcoin.com News (@BitcoinNews) January 29, 2026
According to reports, the Senate Agriculture Committee approved the Digital Commodity Intermediaries Act on a 12–11 party-line vote, with Republicans in favor and Democrats opposed. The measure would expand the authority of the Commodity Futures Trading Commission over digital commodities and spot crypto markets. While the margin was narrow, the outcome was historic: no crypto market structure bill had previously cleared a Senate committee.
A First Step Toward Defining Crypto Oversight
The bill aims to resolve long-standing jurisdictional uncertainty between the CFTC and the Securities and Exchange Commission. Under the proposal, digital assets that meet the definition of “digital commodities” would primarily fall under CFTC supervision rather than securities law.
As a result, trading platforms dealing in those assets would need to register with the agency and follow requirements covering disclosures, customer protections, and market integrity. Supporters argue the framework mirrors oversight already used in traditional commodities markets while adapting it to blockchain-based assets.
Most acknowledge that clearer lines of authority would reduce compliance confusion and provide more consistent enforcement across the industry. According to committee Republicans, the absence of a defined structure has allowed misconduct to persist while pushing legitimate innovation outside the United States.
Committee Chair John Boozman said during the markup that the vote reflects recognition that existing financial laws no longer fit modern digital markets. He argued that clearer guardrails could protect consumers while supporting innovation, pointing to concerns such as fraud linked to crypto ATMs that lawmakers say require more focused oversight.
Democratic Opposition and Ethics Concerns
On the other hand, Democrats on the panel opposed the legislation, citing concerns about ethics standards and investor protection. Several lawmakers argued the bill does not sufficiently address conflicts of interest involving public officials or strengthen safeguards against market manipulation.
They also warned that shifting expanded responsibilities to the CFTC could strain an agency historically focused on derivatives rather than retail-facing markets. Cory Booker said Democratic objections centered on what he described as inadequate ethics provisions, including the absence of restrictions on public officials’ involvement in the crypto sector.
As a result, Democrats proposed amendments that would have barred elected officials, including the president, from engaging in digital asset activities and addressed exposure to foreign adversaries. However, none of those amendments were adopted, with Boozman stating that such matters fall outside the committee’s jurisdiction.
Despite the partisan divide, some Democrats had previously expressed optimism that a market structure bill could advance. Kirsten Gillibrand had earlier said she was confident the committee would move forward, underscoring the complex political balance surrounding crypto legislation.
Related: UAE Central Bank Approves First US Dollar Stablecoin
What Happens Next
Notably, the Agriculture Committee’s vote does not send the bill directly to the floor. Instead, the Senate Banking Committee must still consider its version of a broader market structure package, often referred to as the CLARITY Act.
That package includes provisions involving the SEC, stablecoin oversight, and additional consumer protections. A scheduled Banking Committee vote earlier this month was postponed after industry opposition, including from Coinbase, and a new date has not been announced.
Only if both committees approve their respective sections can lawmakers reconcile the measures and bring a unified bill before the full chamber. Observers note that unresolved issues, such as stablecoin yield rules, the role of banks in crypto markets, and oversight of decentralized finance, remain obstacles.
Still, the narrow vote marks a significant procedural milestone. It reflects a shift from years of stalled debate toward concrete legislative action, even as sharp divisions persist over how digital asset markets should be governed.
The post Senate Panel Advances Market Structure Bill in Narrow Party-Line Vote appeared first on Cryptotale.
The post Senate Panel Advances Market Structure Bill in Narrow Party-Line Vote appeared first on Cryptotale.
The bill would expand CFTC authority over digital commodities and spot crypto markets.
Senate Banking Committee approval is still required before the measure reaches the full Senate.
A closely divided vote in Washington marked a turning point for U.S. cryptocurrency regulation, as lawmakers moved a long-debated market structure proposal forward for the first time. The development signals growing pressure on Congress to establish clear rules for digital assets amid years of regulatory overlap, court battles, and industry uncertainty.
BREAKING: The Senate Agriculture Committee approves its portion of the digital asset market structure bill, part of the Clarity Act, on a 12–11 party-line vote.
The measure now moves forward as lawmakers work toward final passage. pic.twitter.com/SQ7EpZDpX5
— Bitcoin.com News (@BitcoinNews) January 29, 2026
According to reports, the Senate Agriculture Committee approved the Digital Commodity Intermediaries Act on a 12–11 party-line vote, with Republicans in favor and Democrats opposed. The measure would expand the authority of the Commodity Futures Trading Commission over digital commodities and spot crypto markets. While the margin was narrow, the outcome was historic: no crypto market structure bill had previously cleared a Senate committee.
A First Step Toward Defining Crypto Oversight
The bill aims to resolve long-standing jurisdictional uncertainty between the CFTC and the Securities and Exchange Commission. Under the proposal, digital assets that meet the definition of “digital commodities” would primarily fall under CFTC supervision rather than securities law.
As a result, trading platforms dealing in those assets would need to register with the agency and follow requirements covering disclosures, customer protections, and market integrity. Supporters argue the framework mirrors oversight already used in traditional commodities markets while adapting it to blockchain-based assets.
Most acknowledge that clearer lines of authority would reduce compliance confusion and provide more consistent enforcement across the industry. According to committee Republicans, the absence of a defined structure has allowed misconduct to persist while pushing legitimate innovation outside the United States.
Committee Chair John Boozman said during the markup that the vote reflects recognition that existing financial laws no longer fit modern digital markets. He argued that clearer guardrails could protect consumers while supporting innovation, pointing to concerns such as fraud linked to crypto ATMs that lawmakers say require more focused oversight.
Democratic Opposition and Ethics Concerns
On the other hand, Democrats on the panel opposed the legislation, citing concerns about ethics standards and investor protection. Several lawmakers argued the bill does not sufficiently address conflicts of interest involving public officials or strengthen safeguards against market manipulation.
They also warned that shifting expanded responsibilities to the CFTC could strain an agency historically focused on derivatives rather than retail-facing markets. Cory Booker said Democratic objections centered on what he described as inadequate ethics provisions, including the absence of restrictions on public officials’ involvement in the crypto sector.
As a result, Democrats proposed amendments that would have barred elected officials, including the president, from engaging in digital asset activities and addressed exposure to foreign adversaries. However, none of those amendments were adopted, with Boozman stating that such matters fall outside the committee’s jurisdiction.
Despite the partisan divide, some Democrats had previously expressed optimism that a market structure bill could advance. Kirsten Gillibrand had earlier said she was confident the committee would move forward, underscoring the complex political balance surrounding crypto legislation.
Related: UAE Central Bank Approves First US Dollar Stablecoin
What Happens Next
Notably, the Agriculture Committee’s vote does not send the bill directly to the floor. Instead, the Senate Banking Committee must still consider its version of a broader market structure package, often referred to as the CLARITY Act.
That package includes provisions involving the SEC, stablecoin oversight, and additional consumer protections. A scheduled Banking Committee vote earlier this month was postponed after industry opposition, including from Coinbase, and a new date has not been announced.
Only if both committees approve their respective sections can lawmakers reconcile the measures and bring a unified bill before the full chamber. Observers note that unresolved issues, such as stablecoin yield rules, the role of banks in crypto markets, and oversight of decentralized finance, remain obstacles.
Still, the narrow vote marks a significant procedural milestone. It reflects a shift from years of stalled debate toward concrete legislative action, even as sharp divisions persist over how digital asset markets should be governed.
The post Senate Panel Advances Market Structure Bill in Narrow Party-Line Vote appeared first on Cryptotale.
The post Senate Panel Advances Market Structure Bill in Narrow Party-Line Vote appeared first on Cryptotale.
Market Shock Hits Hard as Gold Crashes $3T+, and Crypto Sees $1.71B Wipeout
Gold sees a record $5.5T intraday swing as volatility jumps beyond 2008 crisis levels.
Crypto drops sharply with $1.71B in liquidations as Bitcoin falls briefly below $82K.
ETF outflows and Fed policy shifts deepen market stress before prices stabilize overnight.
Global markets absorbed one of their most jarring sessions in recent memory on January 29, 2026, as a wave of volatility tore through assets usually seen as anchors in uncertain periods. Gold led the disruption with a surge to new highs before a sudden air pocket in liquidity sent prices tumbling into the $5,100–$5,200 range.
The drop erased more than $3 trillion in value in under an hour. However, by the close, the metal had clawed back roughly $2.3 trillion, producing a swing so large that even veteran analysts struggled to place it in historical context. For many traders, the episode felt like a collision of profit-taking, tense geopolitics, and a thinning order book at precisely the wrong moment.
Silver, which often tracks the broader metals mood, echoed the chaos with a slide from $121 to $106 before bouncing back toward $117. Regardless, markets eventually steadied early the next morning, though the atmosphere remained uneasy.
A Reversal Without Modern Precedent
Analysts at The Kobeissi Letter, who track daily flows and cross-asset stress points, described the move in gold as one of the sharpest intraday reversals they had ever recorded. Their breakdown showed a $3.2 trillion evaporation between 9:30 and 10:25 a.m. ET, roughly $58 billion a minute, followed by an equally abrupt recovery.
Source: X
While plenty of dramatic sessions occupy market lore, this one pushed volatility readings past levels seen during the 2008 crisis. That comparison underscored the intensity of positioning in assets normally considered a haven during geopolitical flare-ups.
Meanwhile, Silver provided little relief for investors seeking a calmer read on sentiment. Its wide arc through the session, swinging more than $15 at the lows, reinforced the feeling that liquidity was simply too thin to absorb heavy orders without causing dislocation.
Crypto Liquidations Amplify the Shock
The disruption didn’t stay confined to metals. Stress spilled quickly into digital assets, where leverage tends to act as an accelerant. More than $1.71 billion in long positions across the crypto market were wiped out as automated liquidations kicked in.
Source: CoinGlass
Bitcoin, which had been attempting to hold higher ranges earlier in the week, broke briefly below $82K and liquidated about $786 million in value during peak selling pressure. As a result, board-wide declines appeared on market heat maps.
Bitcoin went down more than 7% on the day, while Ethereum slipped nearly 9%. Analysts reviewing the tape later noted that little of the move stemmed from token-specific developments. The selling was largely structural: too much leverage meeting too little liquidity at once.
Defensive Positioning and Policy Headwinds
Fundamentally, the tone among institutional investors has turned noticeably more cautious. Spot Bitcoin ETFs saw roughly $1.08 billion in net outflows over the past five sessions. While not a panic signal, it hinted at fatigue after weeks of elevated volatility.
Source: SoSoValue
With forced liquidations still echoing through the system, the absence of steady inflows left the market to fend for itself. Policy developments added another complication. The Federal Reserve’s choice to pause rate cuts removed the liquidity narrative that had supported risk appetite across several asset classes.
Meanwhile, geopolitical unease, particularly renewed U.S.–Iran tension, fed into a defensive tilt. Traders were also watching speculation that former Fed Governor Kevin Warsh, known for a more hawkish stance, could emerge as a candidate for Fed Chair.
Related: WLD Extends Rally With 15% Jump as OpenAI Explores Proof of Personhood
Long-Term Outlook Remains Intact
Despite the turbulence, long-term views on gold remain largely unchanged among major banks. JPMorgan reiterated its expectation that prices could eventually push beyond $8,000, citing persistent inflation pressures. By early January 30, gold had drifted back toward $5,100, silver hovered near $106, and Bitcoin steadied above $82K.
Market analysts agreed on at least one point: both precious metals and crypto have entered a stretch where erratic intraday swings may become more common, shaped less by narratives and more by how liquidity reacts under stress.
The post Market Shock Hits Hard as Gold Crashes $3T+, and Crypto Sees $1.71B Wipeout appeared first on Cryptotale.
The post Market Shock Hits Hard as Gold Crashes $3T+, and Crypto Sees $1.71B Wipeout appeared first on Cryptotale.
Crypto drops sharply with $1.71B in liquidations as Bitcoin falls briefly below $82K.
ETF outflows and Fed policy shifts deepen market stress before prices stabilize overnight.
Global markets absorbed one of their most jarring sessions in recent memory on January 29, 2026, as a wave of volatility tore through assets usually seen as anchors in uncertain periods. Gold led the disruption with a surge to new highs before a sudden air pocket in liquidity sent prices tumbling into the $5,100–$5,200 range.
The drop erased more than $3 trillion in value in under an hour. However, by the close, the metal had clawed back roughly $2.3 trillion, producing a swing so large that even veteran analysts struggled to place it in historical context. For many traders, the episode felt like a collision of profit-taking, tense geopolitics, and a thinning order book at precisely the wrong moment.
Silver, which often tracks the broader metals mood, echoed the chaos with a slide from $121 to $106 before bouncing back toward $117. Regardless, markets eventually steadied early the next morning, though the atmosphere remained uneasy.
A Reversal Without Modern Precedent
Analysts at The Kobeissi Letter, who track daily flows and cross-asset stress points, described the move in gold as one of the sharpest intraday reversals they had ever recorded. Their breakdown showed a $3.2 trillion evaporation between 9:30 and 10:25 a.m. ET, roughly $58 billion a minute, followed by an equally abrupt recovery.
Source: X
While plenty of dramatic sessions occupy market lore, this one pushed volatility readings past levels seen during the 2008 crisis. That comparison underscored the intensity of positioning in assets normally considered a haven during geopolitical flare-ups.
Meanwhile, Silver provided little relief for investors seeking a calmer read on sentiment. Its wide arc through the session, swinging more than $15 at the lows, reinforced the feeling that liquidity was simply too thin to absorb heavy orders without causing dislocation.
Crypto Liquidations Amplify the Shock
The disruption didn’t stay confined to metals. Stress spilled quickly into digital assets, where leverage tends to act as an accelerant. More than $1.71 billion in long positions across the crypto market were wiped out as automated liquidations kicked in.
Source: CoinGlass
Bitcoin, which had been attempting to hold higher ranges earlier in the week, broke briefly below $82K and liquidated about $786 million in value during peak selling pressure. As a result, board-wide declines appeared on market heat maps.
Bitcoin went down more than 7% on the day, while Ethereum slipped nearly 9%. Analysts reviewing the tape later noted that little of the move stemmed from token-specific developments. The selling was largely structural: too much leverage meeting too little liquidity at once.
Defensive Positioning and Policy Headwinds
Fundamentally, the tone among institutional investors has turned noticeably more cautious. Spot Bitcoin ETFs saw roughly $1.08 billion in net outflows over the past five sessions. While not a panic signal, it hinted at fatigue after weeks of elevated volatility.
Source: SoSoValue
With forced liquidations still echoing through the system, the absence of steady inflows left the market to fend for itself. Policy developments added another complication. The Federal Reserve’s choice to pause rate cuts removed the liquidity narrative that had supported risk appetite across several asset classes.
Meanwhile, geopolitical unease, particularly renewed U.S.–Iran tension, fed into a defensive tilt. Traders were also watching speculation that former Fed Governor Kevin Warsh, known for a more hawkish stance, could emerge as a candidate for Fed Chair.
Related: WLD Extends Rally With 15% Jump as OpenAI Explores Proof of Personhood
Long-Term Outlook Remains Intact
Despite the turbulence, long-term views on gold remain largely unchanged among major banks. JPMorgan reiterated its expectation that prices could eventually push beyond $8,000, citing persistent inflation pressures. By early January 30, gold had drifted back toward $5,100, silver hovered near $106, and Bitcoin steadied above $82K.
Market analysts agreed on at least one point: both precious metals and crypto have entered a stretch where erratic intraday swings may become more common, shaped less by narratives and more by how liquidity reacts under stress.
The post Market Shock Hits Hard as Gold Crashes $3T+, and Crypto Sees $1.71B Wipeout appeared first on Cryptotale.
The post Market Shock Hits Hard as Gold Crashes $3T+, and Crypto Sees $1.71B Wipeout appeared first on Cryptotale.
Kazakhstan Turns Seized Crypto Into a National Reserve Plan
Seized crypto now supports a state reserve alongside gold and foreign currency holdings.
Law enforcement seizures now feed directly into national crypto reserves framework.
Central bank funds gain cryptocurrency exposure through hedge funds and venture capital.
Kazakhstan’s central bank investment arm has confirmed plans to strengthen a new national crypto reserve using digital assets seized from criminal cases, alongside gold and foreign currency holdings. The initiative places enforcement outcomes directly into the country’s reserve strategy. The fund already includes $350 million in earmarked foreign currency and gold. Authorities say the structure reflects tighter state control over crypto exposure as Kazakhstan reshapes its digital asset policy.
The plan emerges as the country rebuilds its crypto framework after the 2022 energy crisis, which triggered unrest and forced a crackdown on large-scale Bitcoin mining. Officials now seek controlled participation rather than unchecked growth. The reserve strategy links regulation, policing, and financial management under a single institutional model. Can enforcement-driven accumulation reshape how states manage digital assets?
Reserve Structure Anchored in Enforcement Assets
The National Investment Corporation, the investment subsidiary of the National Bank of Kazakhstan, said it will use cryptocurrencies seized by law enforcement agencies to expand the reserve. The Russian-language outlet QAMS QazTrading first reported the plan.
NIC head Timur Suleimenov told the media on January 28 that the fund already holds $350 million in foreign currency and gold. The assets form the initial base of the reserve. Authorities plan to layer seized crypto onto that foundation.
The NIC has opened a dedicated account for crypto-related investments at Kazakhstan’s Central Depository. This step formalizes custody and reporting. It also places digital assets under the same oversight framework used for traditional reserves.
Investment Channels and Fund Management
The NIC said it does not plan to buy or hold cryptocurrencies directly. Instead, it will gain exposure through hedge funds that manage crypto purchases. Officials confirmed that five such funds sit on a shortlist.
The corporation has not disclosed the names of the hedge funds. Suleimenov said the approach allows the state to avoid direct trading while maintaining exposure. The structure also aligns with institutional risk controls.
Beyond hedge funds, the NIC plans to invest in crypto-focused venture capital funds. This widens the reserve’s reach across the digital asset sector. The strategy keeps ownership indirect while expanding participation.
Crackdown Fuels Reserve Growth
Kazakhstan’s President Kassym-Jomart Tokayev said the central bank may already control up to $5 million in crypto. He shared the figure during a recent address. The assets stem from enforcement actions.
Police have shut down 130 illegal crypto exchanges. Tokayev said those platforms generated about $124 million in combined revenue. Investigators also seized assets worth more than $5 million, though officials did not specify their form.
“Money laundering and the illegal withdrawal of money through underground cryptocurrency operations have become a serious problem,” Tokayev said. He added that advertising for cash-for-crypto exchanges continues on social media. Tokayev told the Financial Monitoring Agency that illegal capital outflows threaten economic security and ordered proposals to strengthen enforcement.
Related: Kazakhstan Sets Central Bank Control Over Crypto Trading
The reserve model differs from earlier national crypto strategies built on open market purchases or public funds. In Kazakhstan’s case, confiscated assets feed directly into state reserves. The approach converts regulatory action into a standing financial resource while keeping digital assets under sovereign oversight.
The post Kazakhstan Turns Seized Crypto Into a National Reserve Plan appeared first on Cryptotale.
The post Kazakhstan Turns Seized Crypto Into a National Reserve Plan appeared first on Cryptotale.
Law enforcement seizures now feed directly into national crypto reserves framework.
Central bank funds gain cryptocurrency exposure through hedge funds and venture capital.
Kazakhstan’s central bank investment arm has confirmed plans to strengthen a new national crypto reserve using digital assets seized from criminal cases, alongside gold and foreign currency holdings. The initiative places enforcement outcomes directly into the country’s reserve strategy. The fund already includes $350 million in earmarked foreign currency and gold. Authorities say the structure reflects tighter state control over crypto exposure as Kazakhstan reshapes its digital asset policy.
The plan emerges as the country rebuilds its crypto framework after the 2022 energy crisis, which triggered unrest and forced a crackdown on large-scale Bitcoin mining. Officials now seek controlled participation rather than unchecked growth. The reserve strategy links regulation, policing, and financial management under a single institutional model. Can enforcement-driven accumulation reshape how states manage digital assets?
Reserve Structure Anchored in Enforcement Assets
The National Investment Corporation, the investment subsidiary of the National Bank of Kazakhstan, said it will use cryptocurrencies seized by law enforcement agencies to expand the reserve. The Russian-language outlet QAMS QazTrading first reported the plan.
NIC head Timur Suleimenov told the media on January 28 that the fund already holds $350 million in foreign currency and gold. The assets form the initial base of the reserve. Authorities plan to layer seized crypto onto that foundation.
The NIC has opened a dedicated account for crypto-related investments at Kazakhstan’s Central Depository. This step formalizes custody and reporting. It also places digital assets under the same oversight framework used for traditional reserves.
Investment Channels and Fund Management
The NIC said it does not plan to buy or hold cryptocurrencies directly. Instead, it will gain exposure through hedge funds that manage crypto purchases. Officials confirmed that five such funds sit on a shortlist.
The corporation has not disclosed the names of the hedge funds. Suleimenov said the approach allows the state to avoid direct trading while maintaining exposure. The structure also aligns with institutional risk controls.
Beyond hedge funds, the NIC plans to invest in crypto-focused venture capital funds. This widens the reserve’s reach across the digital asset sector. The strategy keeps ownership indirect while expanding participation.
Crackdown Fuels Reserve Growth
Kazakhstan’s President Kassym-Jomart Tokayev said the central bank may already control up to $5 million in crypto. He shared the figure during a recent address. The assets stem from enforcement actions.
Police have shut down 130 illegal crypto exchanges. Tokayev said those platforms generated about $124 million in combined revenue. Investigators also seized assets worth more than $5 million, though officials did not specify their form.
“Money laundering and the illegal withdrawal of money through underground cryptocurrency operations have become a serious problem,” Tokayev said. He added that advertising for cash-for-crypto exchanges continues on social media. Tokayev told the Financial Monitoring Agency that illegal capital outflows threaten economic security and ordered proposals to strengthen enforcement.
Related: Kazakhstan Sets Central Bank Control Over Crypto Trading
The reserve model differs from earlier national crypto strategies built on open market purchases or public funds. In Kazakhstan’s case, confiscated assets feed directly into state reserves. The approach converts regulatory action into a standing financial resource while keeping digital assets under sovereign oversight.
The post Kazakhstan Turns Seized Crypto Into a National Reserve Plan appeared first on Cryptotale.
The post Kazakhstan Turns Seized Crypto Into a National Reserve Plan appeared first on Cryptotale.
UAE Central Bank Approves First US Dollar Stablecoin
CBUAE approval makes USDU the first central bank-registered US dollar stablecoin.
USDU holds one-to-one dollar reserves in UAE bank accounts in an onshore framework.
Payment token rules allow institutions to settle digital assets using USDU legally today.
The Central Bank of the United Arab Emirates has approved the country’s first USD-backed stablecoin under its Payment Token Services Regulation. The approval allows USDU to operate within a central-bank-regulated payments framework. The decision positions the UAE among the first jurisdictions to authorize a regulated digital dollar for payments.
According to a Thursday press release, the approval grants formal recognition to USDU as a Registered Foreign Payment Token. As a result, regulated institutions can now use a compliant USD stablecoin under existing payment rules. The framework governs how digital payment tokens operate within the national financial system.
The regulatory move places the UAE ahead of the United States, the European Union, and much of Asia. Unlike other regions, the UAE now hosts a live USD stablecoin under central bank oversight. This step marks a structural change in how digital dollars integrate with regulated payments.
Universal Digital Operates USDU Under Dual Oversight
The issuance and management of USDU are handled by Universal Digital. The firm operates under the supervision of the Financial Services Regulatory Authority of the Abu Dhabi Global Market. Universal also holds registration with the UAE central bank for payment token activities.
This dual oversight framework governs reserve custody, disclosures, governance, and operational controls. Universal holds permission to issue a fiat-referenced token under ADGM rules. Simultaneously, the central bank registration allows payment token use across regulated workflows.
Universal launches USDU – the UAE’s first Central Bank-registered USD stablecoin.
Issued by an FSRA-regulated entity in @ADGlobalMarket, USDU is supported by banking partners @EmiratesNBD_AE , @MashreqTweets, and @almaryahbank with global distribution via @aquanow, and alignment… pic.twitter.com/LisFKmBMxd
— Universal (@Universal_USDU) January 29, 2026
Juha Viitala, senior executive officer of Universal, said the registration creates clarity for institutions. “USDU sets a new benchmark for regulated digital value,” Viitala stated in the release. He added that central bank registration provides institutions with clearer compliance pathways.
Reserve Structure and Institutional Use Cases
Reserves backing USDU are held on a one-to-one basis with U.S. dollars. The funds sit in safeguarded onshore accounts at Emirates NBD and Mashreq. Mbank acts as a supporting banking partner for the reserve structure.
Viitala said this structure matters for regulated entities operating in the UAE. Banks, brokers, and licensed venues can now integrate a compliant USD token. They can also align settlement, reporting, and compliance processes without structural changes.
Under the Payment Token Services Regulation, digital asset payments must use fiat or registered payment tokens. That rule also applies to digital asset derivatives settled within the UAE. USDU currently stands as the only USD stablecoin meeting those requirements.
Why does regulatory registration matter when global stablecoins already circulate in UAE markets?
Related: Circle Advances UAE Expansion With ADGM License, New MEA Head
Distribution, Blockchain Infrastructure, and Compliance Scope
While UAE traders widely use global stablecoins like Tether’s USDt, they lack central bank registration. As a result, they do not qualify under the UAE payment-token regime. Viitala said USDU fills that regulatory gap for compliant institutional activity.
USDU operates as an ERC-20 token on the Ethereum blockchain. That structure supports interoperability with existing digital finance infrastructure. It also allows integration with established blockchain-based systems.
Universal appointed Aquanow as a global distribution partner. Aquanow operates as a digital asset infrastructure provider regulated under Dubai’s VARA. The partnership supports institutional access to USDU outside the UAE where permitted.
Mashreq’s Group Head of Corporate and Investment Banking, Joel Van Dusen, commented on the launch. He said growing institutional demand favors regulated digital-value instruments. He added that USDU supports the market’s continued maturation.
A KuCoin report stated that the approval places the UAE among the first major jurisdictions to integrate a USD stablecoin into a central-bank-regulated payments framework.
The post UAE Central Bank Approves First US Dollar Stablecoin appeared first on Cryptotale.
The post UAE Central Bank Approves First US Dollar Stablecoin appeared first on Cryptotale.
USDU holds one-to-one dollar reserves in UAE bank accounts in an onshore framework.
Payment token rules allow institutions to settle digital assets using USDU legally today.
The Central Bank of the United Arab Emirates has approved the country’s first USD-backed stablecoin under its Payment Token Services Regulation. The approval allows USDU to operate within a central-bank-regulated payments framework. The decision positions the UAE among the first jurisdictions to authorize a regulated digital dollar for payments.
According to a Thursday press release, the approval grants formal recognition to USDU as a Registered Foreign Payment Token. As a result, regulated institutions can now use a compliant USD stablecoin under existing payment rules. The framework governs how digital payment tokens operate within the national financial system.
The regulatory move places the UAE ahead of the United States, the European Union, and much of Asia. Unlike other regions, the UAE now hosts a live USD stablecoin under central bank oversight. This step marks a structural change in how digital dollars integrate with regulated payments.
Universal Digital Operates USDU Under Dual Oversight
The issuance and management of USDU are handled by Universal Digital. The firm operates under the supervision of the Financial Services Regulatory Authority of the Abu Dhabi Global Market. Universal also holds registration with the UAE central bank for payment token activities.
This dual oversight framework governs reserve custody, disclosures, governance, and operational controls. Universal holds permission to issue a fiat-referenced token under ADGM rules. Simultaneously, the central bank registration allows payment token use across regulated workflows.
Universal launches USDU – the UAE’s first Central Bank-registered USD stablecoin.
Issued by an FSRA-regulated entity in @ADGlobalMarket, USDU is supported by banking partners @EmiratesNBD_AE , @MashreqTweets, and @almaryahbank with global distribution via @aquanow, and alignment… pic.twitter.com/LisFKmBMxd
— Universal (@Universal_USDU) January 29, 2026
Juha Viitala, senior executive officer of Universal, said the registration creates clarity for institutions. “USDU sets a new benchmark for regulated digital value,” Viitala stated in the release. He added that central bank registration provides institutions with clearer compliance pathways.
Reserve Structure and Institutional Use Cases
Reserves backing USDU are held on a one-to-one basis with U.S. dollars. The funds sit in safeguarded onshore accounts at Emirates NBD and Mashreq. Mbank acts as a supporting banking partner for the reserve structure.
Viitala said this structure matters for regulated entities operating in the UAE. Banks, brokers, and licensed venues can now integrate a compliant USD token. They can also align settlement, reporting, and compliance processes without structural changes.
Under the Payment Token Services Regulation, digital asset payments must use fiat or registered payment tokens. That rule also applies to digital asset derivatives settled within the UAE. USDU currently stands as the only USD stablecoin meeting those requirements.
Why does regulatory registration matter when global stablecoins already circulate in UAE markets?
Related: Circle Advances UAE Expansion With ADGM License, New MEA Head
Distribution, Blockchain Infrastructure, and Compliance Scope
While UAE traders widely use global stablecoins like Tether’s USDt, they lack central bank registration. As a result, they do not qualify under the UAE payment-token regime. Viitala said USDU fills that regulatory gap for compliant institutional activity.
USDU operates as an ERC-20 token on the Ethereum blockchain. That structure supports interoperability with existing digital finance infrastructure. It also allows integration with established blockchain-based systems.
Universal appointed Aquanow as a global distribution partner. Aquanow operates as a digital asset infrastructure provider regulated under Dubai’s VARA. The partnership supports institutional access to USDU outside the UAE where permitted.
Mashreq’s Group Head of Corporate and Investment Banking, Joel Van Dusen, commented on the launch. He said growing institutional demand favors regulated digital-value instruments. He added that USDU supports the market’s continued maturation.
A KuCoin report stated that the approval places the UAE among the first major jurisdictions to integrate a USD stablecoin into a central-bank-regulated payments framework.
The post UAE Central Bank Approves First US Dollar Stablecoin appeared first on Cryptotale.
The post UAE Central Bank Approves First US Dollar Stablecoin appeared first on Cryptotale.
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