Blockonomi

TLDR

Nvidia CEO Jensen Huang is waiting for China’s approval to sell the H200 AI chip in the country.

Huang remains optimistic about the approval process, citing strong demand for the H200 in China.

The Chinese government has already approved ByteDance, Alibaba, and Tencent to purchase over 400,000 H200 chips.

Despite approvals, restrictions have been placed on the purchase process, with some companies awaiting further clarification.

Nvidia’s H200 chip is expected to strengthen both American leadership in AI and China’s AI development.

Nvidia CEO Jensen Huang confirmed that the company is waiting for final approval from China to sell its H200 AI chip. During his recent visit to Taipei, Huang discussed Nvidia’s efforts to expand its presence in China. He expressed hope that the Chinese government would grant permission for the sale of the powerful chip, which is designed to support AI applications.

Nvidia’s Efforts to Expand in China

Huang mentioned that the licensing process for the H200 chip is nearly complete. He emphasized that the H200 would benefit both American technological leadership and the Chinese market. “The customers would very much like to have H200,” Huang stated, highlighting strong demand from local businesses.

Despite the uncertainty of the approval process, he remains optimistic and looks forward to a favorable decision from the Chinese government. He also noted that the H200 chip could help solidify Nvidia’s global role in AI development.

“This is very good for American technology leadership. It’s also very good for the Chinese market,” Huang said. As China remains a key player in the global technology space, Nvidia is keen to establish a stronger foothold in the country, especially with its cutting-edge AI solutions.

Huang’s Remarks Align with China’s Shifting Approach to AI Chip Investments

Huang’s comments come in light of new developments reported by Blockonomi this week, which detail China’s shift in its stance towards Nvidia’s AI chips. The Chinese government has approved three of China’s largest tech companies, ByteDance, Alibaba, and Tencent, to purchase Nvidia’s H200 chips.

The approval of over 400,000 H200 chips to these firms marks a step in China’s AI investments. However, the Chinese government has placed certain restrictions on the purchase process. Some companies are still awaiting further clarification on the terms before placing orders, suggesting that the full rollout of Nvidia’s H200 chips in China may take time.

The post Nvidia CEO Reveals Final Step for H200 AI Chip License Approval in China appeared first on Blockonomi.

TLDR:

Format does not alter securities law application; tokenized assets face same registration requirements. 

Issuers can maintain master securityholder files onchain or use crypto assets as transfer notification tools. 

Third-party custodial models create security entitlements while synthetic models provide exposure only. 

Security-based swaps require registration and exchange execution for sales to non-eligible participants.

 

The Securities and Exchange Commission’s divisions have issued a comprehensive statement clarifying how federal securities laws apply to tokenized securities.

The Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets outline two primary categories: issuer-sponsored and third party-sponsored tokenized securities.

This framework addresses the growing need for regulatory clarity as blockchain technology becomes more prevalent in capital markets. The statement emphasizes that format does not alter securities law application.

Issuer-Sponsored Models Define Direct Tokenization Approaches

Issuers can tokenize securities by formatting them as crypto assets while maintaining master securityholder files on blockchain networks.

The integration of distributed ledger technology allows onchain transfers to reflect ownership changes in the official records. This approach differs from traditional securities only in recordkeeping methods, not legal status.

The same class of securities may exist in multiple formats simultaneously. Holders can convert between tokenized and traditional formats based on their preferences.

Securities Act registration requirements remain unchanged regardless of whether securities use onchain or offchain recordkeeping systems.

Another model separates the crypto asset from the master securityholder file entirely. The issuer maintains ownership records offchain while using crypto assets as transfer notification mechanisms.

Security holders receive crypto assets that trigger ownership updates rather than directly representing the securities themselves.

These arrangements allow transfers to occur through blockchain transactions that prompt issuers to update official records.

The crypto asset serves as a signaling device rather than the actual security representation. Offchain databases remain the authoritative source for ownership information in this structure.

Third-Party Tokenization Creates Additional Asset Categories

Custodial tokenized securities represent one third-party approach where crypto assets evidence ownership interests in underlying securities held in custody.

These tokenized security entitlements function similarly to traditional custody arrangements but use blockchain technology for record maintenance. The underlying securities remain separate from the crypto asset representation.

Transfer of these crypto assets triggers updates to entitlement holder records maintained by the custodian. Some implementations integrate blockchain directly into recordkeeping systems while others use onchain transfers to update offchain records. Both approaches create indirect ownership structures through security entitlements.

Synthetic tokenized securities provide exposure without conveying actual ownership rights in referenced securities. Linked securities and security-based swaps fall into this category. These instruments are obligations of the third party rather than the underlying security issuer.

Security-based swaps face additional restrictions under federal law. Sales to non-eligible contract participants require effective registration statements and execution on national securities exchanges.

The classification depends on whether the instrument meets swap definition requirements and satisfies one of three specified prongs related to security indices, individual securities, or issuer-specific events. Economic reality rather than naming conventions determines proper classification.

The post SEC Clarifies Tokenized Securities Framework: Issuer and Third-Party Models Explained appeared first on Blockonomi.

TLDR:

STRC provides 11% fiat-denominated annual income with senior claim status on Strategy’s Bitcoin holdings. 

The instrument bypasses traditional banking infrastructure by routing capital directly through Bitcoin purchases. 

Institutional investors view STRC as competition for credit funds, municipal bonds, and money market funds. 

Product creates feedback loop where increased demand drives Bitcoin purchases and strengthens collateral base.

 

Strategy’s newly introduced STRC represents a senior, Bitcoin-backed financial instrument offering double-digit yields to investors.

The structure combines Michael Saylor’s cryptocurrency accumulation strategy with traditional income generation mechanisms.

Market observers note this development as capital markets position themselves around digital asset-backed securities that compete directly with conventional fixed-income products.

Bitcoin-Backed Yield Structure Targets Traditional Finance

STRC operates as a senior claim instrument tied to Strategy’s Bitcoin holdings while delivering fiat-denominated returns. According to social media commentary from Adam Livingston, the product’s structure, stating it offers “11% fiat-denominated annual income” with “senior claim status on a Bitcoin-levered balance sheet.”

The mechanism channels investor capital through the Strategy’s Bitcoin acquisition framework before returning yield streams in traditional currency denominations.

THE BANKS ARE MELTING: SAYLOR’S STRC TURNS BITCOIN INTO A FINANCIAL DEATH LASER

This is a capital markets extinction event.

STRC is a Bitcoin-backed, yield-bearing, senior instrument that eats bonds, front-runs banks, and redefines what capital even means.

It offers… pic.twitter.com/9JADz0Vhes

— Adam Livingston (@AdamBLiv) January 29, 2026

The product structure maintains senior positioning within Strategy’s capital hierarchy. This status provides holders with priority claims relative to equity investors.

The Bitcoin collateral base supports the yield generation while maintaining exposure to cryptocurrency price dynamics. Livingston described this as “asymmetric yield backed by thermodynamic certainty and 24/7 liquidity pipes.”

Traditional banking products currently offer minimal returns on deposit accounts. Regional institutions typically provide near-zero interest rates alongside extended settlement periods for basic transactions.

STRC presents an alternative that combines cryptocurrency exposure with income generation outside conventional banking infrastructure.

The instrument bypasses fractional reserve banking systems entirely. Capital flows directly from investors to Bitcoin purchases through Strategy’s operations.

Livingston explained that the structure “pulls dollars out of the fiat system, routes them through Strategy’s Bitcoin engine, converts them into Bitcoin-backed yield, and returns them to investors as streams of programmable fiat income.” Returns then circulate back to participants without engaging traditional financial intermediaries.

Capital Reallocation Potential Across Fixed-Income Markets

Market participants view STRC as competition for various fixed-income categories. The product competes with credit funds, municipal bonds, certificates of deposit, and money market funds.

Institutional allocators evaluate the instrument against existing portfolio positions in these traditional categories. Livingston posed the question: “Why would you have a savings account instead of yielding 11% with STRC?”

Sovereign wealth funds examine STRC for combined Bitcoin exposure and cash flow generation. Family offices consider the structure’s senior positioning and non-dilutive characteristics for portfolio allocation.

International institutions assess the product as access to dollar-denominated income while maintaining cryptocurrency-linked returns. According to Livingston, “Foreign institutions see STRC as a way to escape local currency erosion while collecting USD-denominated income.”

The positive feedback mechanism operates through several stages. Increased STRC demand drives additional Bitcoin acquisitions by Strategy.

Higher Bitcoin allocations strengthen the collateral base supporting further issuance. Expanded issuance then reinforces infrastructure development around Bitcoin-centric capital markets.

Livingston characterized this as a chain reaction of “more Bitcoin purchases, higher mNAV, stronger collateral base, more STRC issuance.”

This cycle potentially redirects capital away from traditional banking deposits and government securities. The reallocation reflects investor preferences for higher-yielding alternatives backed by cryptocurrency assets.

As STRC gains traction, competitive pressure mounts on conventional financial products to adjust their value propositions or risk continued capital outflows to digital asset-backed instruments.

The post Strategy’s STRC Bitcoin-Backed Instrument Challenges Traditional Fixed-Income Markets appeared first on Blockonomi.

TLDR

Tesla plans to more than double its capital spending to $20 billion, focusing on autonomous vehicles and humanoid robots.

CEO Elon Musk highlighted the shift in focus from traditional EV sales to AI-driven projects and robotics.

The company’s investments will fund production lines for Cybercab, Optimus robots, and new plants for battery production.

Tesla’s valuation is driven by investor confidence in Musk’s ambitious plans for robotaxis and humanoid robots powered by AI.

Despite the new focus, Tesla will still rely on human-driven EVs for the majority of its sales in the short term.

Tesla has announced plans to more than double its capital spending to a record $20 billion. According to a report by Reuters, CEO Elon Musk confirmed that much of the investment would go toward projects like fully autonomous vehicles, humanoid robots, and battery production. This shift in focus comes as Tesla moves away from its traditional electric vehicle (EV) sales, following its loss of the global EV sales lead to China’s BYD.

Tesla’s Strategic Investment in New Business Lines

Tesla’s increased spending will primarily fund production lines for the Cybercab, a fully autonomous vehicle without steering wheels and pedals. Other key areas of investment include the development of Tesla’s Optimus humanoid robots and new plants for battery and lithium production.

Musk highlighted that the shift towards these projects represents a “very big capex year” for Tesla. He explained that the company is making “big investments for an epic future,” emphasizing that the company is not just modernizing its existing business but venturing into entirely new markets.

Despite this, Tesla continues to rely on human-driven EVs for the majority of its sales. However, its valuation remains the highest among automakers, more in line with tech companies. Much of Tesla’s value is driven by investor belief that Musk will succeed in delivering on his ambitious plans, particularly the rollout of robotaxis and humanoid robots powered by advanced AI.

Record Capital Spending and Focus on AI Technology

Tesla’s $20 billion investment is more than double the $8.5 billion spent in 2023. Chief Financial Officer Vaibhav Taneja noted that Tesla has over $44 billion in cash and investments available to fund these ventures. He also indicated that further spending may be financed through debt or other means, suggesting that this will not be a one-time increase in capital spending.

Musk admitted that these investments were not made “for fun,” but out of “desperation” to meet critical technology needs, including the development of lithium and cathode refining infrastructure. While Tesla remains focused on its EV business for the time being, its future investments clearly align with its goal to expand into AI-driven technologies and humanoid robots.

The company’s shift towards fully autonomous vehicles and robotic products underscores its evolving role in the tech industry. Musk’s ambitious plans signal that Tesla’s focus is now firmly on revolutionizing the future of transportation and robotics.

The post Tesla Doubles Capital Spending, Shifts Focus to Autonomous Vehicles and Humanoid Robots appeared first on Blockonomi.

TLDR:

Powell explicitly stated “a rate hike is not anyone’s base case” marking the definitive end of tightening 

Core PCE inflation runs slightly above 2% when tariff effects excluded, giving Fed room for future easing 

FOMC vote was 10-2 with two members favoring cuts and zero pushing for hikes during latest policy meeting 

Fed expects tariff-driven inflation to peak mid-2026 then decline, shifting focus to timing of rate cuts

 

The Federal Reserve maintained interest rates at 3.5% to 3.75% during its latest meeting, with Chair Jerome Powell explicitly stating that rate hikes are no longer under consideration.

The FOMC vote resulted in a 10-2 decision, where two members favored cuts while none pushed for increases. Powell’s statement that “a rate hike is not anyone’s base case” marks a clear shift in monetary policy direction.

The central bank now focuses on determining the appropriate timing for potential rate cuts rather than further tightening.

Fed Pivots From Tightening to Wait-and-See Approach

Powell emphasized that inflation remains elevated but attributed most excess price pressures to tariffs rather than underlying demand.

According to the Fed chair, “core PCE excluding tariff effects is running only slightly above 2%” target. The central bank expects tariff-driven inflation to peak by mid-2026 before declining later this year. This trajectory could provide the Fed with room to ease policy conditions.The economy continues to demonstrate resilience beyond Fed expectations. Powell noted that “the economy has once again surprised with its strength” while unemployment data shows signs of stabilization.

The Fed chair stated that “current policy is already restrictive enough” to address inflation concerns. The central bank believes its existing stance adequately manages price pressures without requiring additional tightening measures.

Future policy decisions will proceed on a meeting-by-meeting basis. Powell confirmed that “no decisions have been made about future cuts” while emphasizing hikes are no longer realistic.

According to a post from Bull Theory, Powell’s remarks confirmed that “tightening is finished” and the question has shifted to “how long do we hold before we cut.”

FED POWELL JUST CONFIRMED THAT RATE HIKES ARE OFF THE TABLE.

Jerome Powell’s FOMC press conference just ended and here's everything the Fed told the market, in simple terms:

– The Fed held rates at 3.5%–3.75%
– The vote was 10–2, meaning only two members wanted a cut,… pic.twitter.com/htB6m1CIVD

— Bull Theory (@BullTheoryio) January 28, 2026

The Fed chair addressed several topics beyond monetary policy. He stated “the Fed does not comment on the dollar” and mentioned limited evidence of aggressive foreign investor hedging.

On fiscal matters, Powell called “the U.S. budget deficit unsustainable” and urged prompt action. This comment contributed to gold reaching new highs as investors sought alternative assets.

Policy Outlook Suggests Eventual Easing

Powell maintained that “the Fed has not lost independence” despite political pressures. He expressed confidence that the central bank “will continue making decisions objectively” going forward.

The chair characterized tariffs as “likely a one-time price increase” rather than persistent inflation. Powell stated “most inflation overruns are coming from tariffs, not demand” which suggests conditions may improve.

The Fed chair suggested “policy may now be loosely neutral or somewhat restrictive” given recent adjustments. He acknowledged “the Fed has already moved a good way on rates” from previous levels.

Powell emphasized that “no one expects the next move to be a hike” among committee members. The direction clearly points toward potential easing rather than further restriction.

Powell dismissed concerns about the recent government shutdown. He expects “any effects from the shutdown should be reversed this quarter” as economic activity normalizes.

The Fed views the shutdown as a temporary disruption rather than a structural economic risk. This assessment reinforces the central bank’s confidence in underlying economic stability.

Financial conditions are no longer being actively tightened. The system transitions from restriction toward stabilization as the Fed holds its position.

Markets now anticipate when the easing cycle will begin rather than if additional tightening will occur. The meeting delivered a definitive message that the tightening cycle has concluded.

The post Powell Declares Rate Hikes Off the Table as Fed Confirms End of Tightening Cycle appeared first on Blockonomi.

TLDR

The SEC has clarified that tokenized securities are considered “securities” under U.S. federal law.

Tokenized securities must comply with the same registration, disclosure, and compliance rules as traditional securities.

The SEC is working to provide a legal framework as tokenized securities grow in the digital asset market.

Tokenized securities are divided into two categories: issuer-sponsored and third-party sponsored, both subject to federal laws.

SEC Commissioner Hester Peirce reiterated that “tokenized securities are still securities,” emphasizing regulatory consistency.

The U.S. Securities and Exchange Commission (SEC) has issued new guidelines clarifying the status of tokenized securities. According to the SEC, these digital assets will be subject to federal securities laws. This move aims to provide clearer regulation for tokenized securities as the industry continues to grow.

Tokenized Securities Under SEC Regulation

The SEC confirmed that tokenized securities are financial instruments defined as “securities” under federal law. These assets will be subject to similar registration, disclosure, and compliance requirements as traditional securities.

The agency stated that, despite the digital format, tokenized securities will maintain the same legal obligations. The SEC’s position on tokenized securities emphasizes the importance of compliance with federal regulations.

These securities, despite being represented as crypto assets, will require issuers to adhere to similar transparency and regulatory standards as traditional securities. The agency has worked to create clarity for the growing market of digital asset securities.

SEC’s Ongoing Efforts for Regulatory Clarity

The SEC’s guidance reflects its ongoing efforts to define the legal framework for tokenized securities. In previous statements, SEC Commissioner Hester Peirce has reaffirmed that “tokenized securities are still securities.”

The SEC aims to provide clarity as U.S. legislators work to pass a market structure bill, which will further define the roles of the SEC and other regulatory bodies. The agency’s latest guidance also divides tokenized securities into two main categories: issuer-sponsored and third-party sponsored.

Issuer-sponsored tokens directly integrate blockchain into ownership records, while third-party-sponsored tokens represent an indirect claim on a security. Both categories are subject to federal securities laws, ensuring that the same legal standards apply across these tokenized assets.

The post SEC Clarifies Rules for Tokenized Securities Under Federal Law appeared first on Blockonomi.

TLDR:

USDY now operates on Sei Network, offering users Treasury-backed yields through fast blockchain infrastructure. 

Non-U.S. users gain direct access to tokenized U.S. Treasuries without intermediaries via Sei’s platform. 

Developers can integrate USDY as collateral and yield primitives into DeFi protocols across Sei ecosystem. 

The deployment expands USDY’s multichain presence, reinforcing its role as a foundational RWA primitive. 

 

Ondo Finance has deployed its U.S. Dollar Yield Token (USDY) on Sei Network, marking another step in the platform’s multichain expansion strategy.

The integration brings tokenized U.S. Treasury exposure to Sei’s high-performance blockchain infrastructure. USDY represents the largest tokenized U.S. Treasuries product by total value locked.

This deployment enables both individual and institutional users to access yield-bearing dollar instruments through Sei’s fast execution layer.

High-Performance Infrastructure Meets Real-World Assets

Sei Network’s architecture provides near-instant finality alongside parallelized execution capabilities for financial applications.

The blockchain’s design supports high transaction throughput without compromising reliability or speed. USDY now operates natively on this infrastructure, offering users direct access to Treasury-backed yields.

USDY, Ondo’s flagship tokenized U.S. Treasury token, is now live on @SeiNetwork.

Sei’s high-performance blockchain powers global, onchain finance. With USDY, the network now expands its RWA capabilities with access to the largest tokenized U.S. Treasuries by TVL.

Together,… pic.twitter.com/XLiq8Z5rEF

— Ondo Finance (@OndoFinance) January 28, 2026

The token delivers yield backed by short-term U.S. Treasuries and cash instruments. Non-U.S. individuals and institutions can access these tokenized securities without traditional intermediaries.

Sei’s performance capabilities enable capital-efficient operations for users managing Treasury exposure. The combination provides sustainable yield generation while maintaining price stability.

Ondo Finance’s President, Ian De Bode, commented on the strategic expansion in the official announcement. “Expanding Ondo USDY to Sei’s high-performance blockchain broadens global access to tokenized U.S. Treasuries,” he stated.

De Bode noted that individuals and enterprises can leverage this sustainable yield source on Sei. He described the move as a key step toward establishing USDY as a core primitive of onchain finance.

The Sei Development Foundation’s Executive Director, Justin Barlow, addressed the integration’s practical applications.

“Introducing Ondo USDY to the speed and throughput of Sei will give users access to a high-quality, Treasury bills backed asset,” Barlow explained.

He outlined potential uses, including borrowing, lending, cash management, and cross-border payments. Barlow characterized the addition as another step in bridging traditional finance and DeFi on performant infrastructure.

Developer Integration and DeFi Composability

USDY’s deployment on Sei unlocks new opportunities for protocol developers building financial applications. The token integrates with native Sei applications, enabling advanced yield strategies and treasury management solutions. Developers can incorporate USDY into capital market products with minimal friction.

The institutional-grade backing positions USDY as reliable collateral across multiple contexts. Lending protocols, trading platforms, and liquidity provision systems can utilize the token.

Sei builders gain access to productive collateral and treasury assets for protocol development. The seamless integration process accelerates deployment timelines for developers.

USDY’s composability extends into DeFi primitives across the Sei ecosystem. Protocol developers can build yield strategies leveraging the token’s Treasury backing.

The integration reduces complexity for teams incorporating real-world assets into decentralized applications. This accessibility supports innovation in onchain financial products.

The deployment continues USDY’s expansion across major blockchain networks. Each integration enhances accessibility for global users seeking Treasury exposure.

The growing multichain footprint reinforces USDY’s position as a foundational real-world asset primitive. Ondo Finance plans additional ecosystem partnerships to expand USDY’s utility on Sei Network.

 

The post Ondo Finance Expands USDY to Sei Network, Enabling Global Access to Tokenized Treasuries appeared first on Blockonomi.

TLDR:

Securitize filed public Form S-4 registration statement advancing its business combination with CEPT toward completion.

Revenue reached $55.6 million for nine months ending September 2025, marking an 841% increase from prior year period.

Full-year 2024 revenue totaled $18.8 million, representing a 129% increase compared to $8.2 million in 2023.

Transaction completion requires CEPT shareholder approval and SEC effectiveness before public listing can proceed.

 

Securitize has publicly filed a registration statement with the Securities and Exchange Commission for its proposed business combination with Cantor Equity Partners II. 

The Form S-4 filing marks a significant step toward the tokenization platform becoming a publicly listed company. 

The registration statement includes updated financial data showing substantial revenue growth through September 2025. This development follows the company’s confidential draft submission in November 2025.

Financial Performance Shows Strong Revenue Growth

The registration statement reveals Securitize achieved total revenue of $55.6 million for the nine months ending September 30, 2025. 

According to the filing, this figure represents “an 841% increase compared to $5.9 million for the nine months ended September 30, 2024.” The company’s revenue streams span tokenized securities, fund administration, and digital-asset infrastructure businesses.

For the full year 2024, Securitize reported total revenue of $18.8 million. As disclosed in the registration statement, this amount marked “a 129% increase compared to $8.2 million for the year ended December 31, 2023.” The financial data demonstrates consistent growth across the company’s operating segments.

The registration statement contains historical financial information that provides transparency for potential investors. 

These figures offer insight into the company’s business trajectory and market position in the tokenization sector.

Transaction Progress and Regulatory Review

Securitize Holdings Inc., a wholly owned subsidiary of Securitize, submitted the public filing as part of the business combination process. 

The registration statement includes a combined proxy statement and prospectus for shareholders to review. 

Cantor Equity Partners II, trading on Nasdaq under the ticker CEPT, is a special purpose acquisition company.

The proposed transaction requires approval from CEPT shareholders before completion. Additionally, the Securities and Exchange Commission must declare the registration statement effective. The filing remains under SEC review as part of the standard regulatory process.

Upon closing, Securitize Holdings Inc. is expected to become a publicly traded entity. The transaction is subject to customary closing conditions beyond shareholder approval and regulatory clearance. 

Securitize describes itself as “the world’s leading platform for tokenizing real-world assets.” The company positions its technology to serve the growing demand for asset tokenization.

Cantor Equity Partners II is sponsored by an affiliate of Cantor Fitzgerald. The partnership aims to bring Securitize’s tokenization technology to public markets. 

The transaction timeline depends on completing the SEC review process and obtaining necessary approvals.

The post Securitize Files Public S-4 Registration for Cantor Equity Partners II SPAC Merger appeared first on Blockonomi.

TLDR;

Stablecoin platforms offer yields near 4.9% while major banks provide near-zero interest on deposits. 

White House facilitates meetings between crypto executives and traditional banking leaders on regulation. 

Crypto firms operate with minimal staff and overhead, passing Treasury bill yields directly to users. 

Banks seek regulatory requirements forcing stablecoin issuers to obtain banking licenses before offering yield.

 

Traditional banking institutions are confronting a new competitive threat as cryptocurrency startups offer substantially higher yields on stablecoin deposits compared to conventional savings accounts.

The emerging conflict has prompted discussions at the highest levels of government, with industry leaders from both sectors invited to address concerns about the shifting financial landscape and its potential impact on the established banking system.

Regulatory Tensions Mount Over Yield Disparities

The stark contrast in returns has become a central point of contention. Stablecoin platforms are providing yields approaching 4.9 percent on dollar-denominated digital assets, while major banks offer near-zero interest rates on traditional deposit accounts.

This gap has created pressure on established financial institutions that maintain extensive physical infrastructure and legacy systems dating back decades.

Industry observer Adam Livingston highlighted the situation on X, noting that crypto firms operate with minimal overhead while backing their stablecoins with Treasury bills.

These companies employ small teams and modern technology stacks, enabling them to pass more yield directly to users.

The banks are PISSING THEMSELVES.

They’ve just realized that some autistic crypto startup in a WeWork with $20 million in T‑Bills and a React front-end is about to nuke the entire $17 trillion U.S. deposit base…

…by offering 4.9% yield on a stablecoin while JPMorgan gives you…

— Adam Livingston (@AdamBLiv) January 28, 2026

Meanwhile, traditional banks support thousands of branches and employees while generating revenue through credit products and various fees.

The operational differences extend beyond simple cost structures. Stablecoin providers offer continuous redemptions and on-chain transactions that settle within seconds, whereas traditional banking systems rely on older infrastructure.

This technological advantage allows newer entrants to provide services without the regulatory burden and compliance costs that established institutions face daily.

Banking representatives have expressed concerns about financial stability to regulators and lawmakers. However, critics argue these objections primarily protect existing business models rather than address genuine systemic risks.

The debate centers on whether regulatory frameworks should require stablecoin issuers to obtain banking licenses before offering yield products.

White House Engagement Signals Policy Crossroads

Recent developments indicate the administration is taking an active role in mediating between traditional finance and cryptocurrency sectors.

Representatives from Circle and Coinbase have been invited to meet with major banking executives to discuss the future of dollar-based financial products.

These conversations represent a significant shift in how policymakers approach the integration of blockchain technology into mainstream finance.

The discussions carry substantial implications for how Americans interact with their savings. Proponents of stablecoin yields argue that technology should enable better returns for depositors, particularly when underlying assets consist of government securities.

Traditional banks counter that their services provide deposit insurance and consumer protections that justify lower returns.

Some observers view stablecoins as merely an intermediate step toward broader adoption of decentralized assets.

The argument suggests that once users become comfortable with digital currencies earning modest yields, they may explore alternative assets offering different risk-return profiles.

This progression could fundamentally alter how individuals store and grow their wealth outside conventional banking channels.

The outcome of these regulatory deliberations will likely determine whether competition drives innovation or whether established players secure protective measures.

Market participants across both sectors await clarity on rules governing yield-bearing digital dollar products and their place within the financial system.

The post Stablecoin Yields Challenge Traditional Banking as White House Brokers Industry Talks appeared first on Blockonomi.

TLDR:

Chinese-language networks processed $16.1 billion in illicit crypto funds throughout 2025 operations. 

Network growth outpaced centralized exchanges by 7,325 times since 2020, capturing 20% market share. 

Black U services process high-value transactions in 1.6 minutes using automated laundering systems. 

Six distinct service types form comprehensive infrastructure from entry points to final integration.

 

Chinese-language money laundering networks have emerged as dominant players in cryptocurrency laundering operations.

These networks processed $16.1 billion in illicit funds during 2025, accounting for roughly 20% of all known crypto money laundering activity.

The operations span 1,799 active wallets and process approximately $44 million daily, according to blockchain analytics firm Chainalysis.

Rapid Growth Outpaces Traditional Laundering Channels

The expansion of Chinese-language money laundering networks has accelerated at unprecedented rates since 2020. Growth in fund flows to these networks exceeded traditional channels by substantial margins. Compared to centralized exchanges, the networks grew 7,325 times faster over the past five years.

Decentralized finance platforms saw growth rates 1,810 times slower than these networks. Even illicit on-chain transfers between criminal entities grew 2,190 times slower. This rapid scaling demonstrates the efficiency and appeal of these services within criminal ecosystems.

The overall illicit laundering landscape expanded from $10 billion in 2020 to over $82 billion in 2025. Chinese-language networks captured an increasing share of this activity. Their prominence coincides with the declining use of centralized exchanges for laundering purposes.

Tom Keatinge, Director at the Centre for Finance & Security at RUSI, offered insights into this phenomenon. “Very rapidly, these networks have developed into multi-billion dollar cross-border operations offering efficient, value-for-money laundering services,” he stated.

The operations suit transnational organized crime groups across Europe and North America, according to Keatinge.

Capital Controls Drive Unprecedented Network Development

Keatinge attributed the rapid development to an unforeseen consequence of capital controls in China. “Wealthy individuals seeking to move money out of China and evade these controls provide the impetus,” he explained.

This liquidity pool services organized crime groups based in Western countries through professional enablers.

The transition from traditional methods has been dramatic in recent years. Chris Urben, Managing Director at Nardello & Co, described the shift occurring within these networks. “The biggest change in Chinese money laundering networks in recent years is a rapid transition to crypto,” he noted.

Traditional informal value transfer systems like Black Market Peso faced displacement by cryptocurrency. Urben explained that crypto offers an efficient way to discreetly move funds across borders.

The technology eliminates reliance on complex manual networks of informal ledgers in various countries.

Black U services reached $1 billion in processing volume within just 236 days of initial operations. Running point brokers required 843 days while over-the-counter services needed 1,136 days for the same milestone. Money mules took 1,277 days to process their first billion dollars in illicit funds.

Six Service Types Form Comprehensive Laundering Infrastructure

Running point brokers serve as entry channels for illicit funds into the financial system. These operators recruit individuals to rent out bank accounts and digital wallets.

The accounts receive fraudulent proceeds and forward them through the laundering network.

Money mule operations orchestrate complex layering schemes through multiple accounts and transactions. These services advertise capabilities spanning African countries and global payment methods. Vendors emphasize speed and discretion to prevent fund freezes by authorities.

Informal over-the-counter desks circumvent regulatory controls and verification requirements. These services charge premium rates above market prices for unmonitored transfers. Despite advertising “clean funds,” on-chain analysis reveals extensive connections to criminal ecosystems.

Black U services specialize in cryptocurrency from hacking, scams, and theft at discounted rates. Buyers purchase illicit assets 10-20% below market value.

Gambling platforms and money movement services complete the infrastructure through mixing and swapping capabilities.

Enforcement Actions Disrupt Operations But Networks Persist

Recent regulatory actions targeted major facilitators within these networks. The U.S. Treasury sanctioned the Prince Group while FinCEN designated Huione Group as a primary money laundering concern. UK authorities similarly sanctioned entities facilitating these operations.

Enforcement disrupted guarantee platforms that serve as marketplaces connecting vendors and customers. Telegram removed some accounts associated with Huione operations.

However, vendors quickly migrated to alternative platforms without operational interruption.

Keatinge addressed the capabilities gap between criminals and law enforcement regarding cryptocurrency use. “There is a chasm in most countries between the capabilities of criminals and law enforcement,” he stated. Nationally-based laws, border barriers, and poor information sharing create challenges for authorities.

Urben outlined effective investigative strategies for detecting these money laundering networks. “The most effective investigative strategy is to match your investigative tools against the operational approach,” he emphasized.

Open source intelligence combined with blockchain analysis helps investigators map networks and match players to currency movements.

The post Chinese Money Laundering Networks Dominate Crypto Crime, Processing $16.1B in 2025 appeared first on Blockonomi.

TLDR:

FSC proposes 15-20% ownership cap on crypto exchange major shareholders under Digital Asset Basic Act framework. 

Upbit operator Dunamu and Coinone would face forced divestment as current stakes exceed proposed limits. 

New authorization system would grant exchanges permanent status, elevating them to public infrastructure level. 

Ruling Democratic Party raises concerns that ownership caps are uncommon internationally, creating divergence.

 

Financial Services Commission Chairman Lee Eog-weon has doubled down on plans to limit major shareholder stakes in cryptocurrency exchanges, despite opposition from industry operators and the ruling Democratic Party.

The regulator argues ownership restrictions are necessary as exchanges transition from private enterprises to entities with broader public responsibilities under proposed comprehensive digital asset legislation.

Regulatory Shift From Notification to Authorization System

The South Korean financial regulator is considering caps between 15 and 20 percent on controlling shareholder stakes in virtual asset exchanges according to The Korea Times.

This provision is expected to feature prominently in the Digital Asset Basic Act, representing the second phase of the country’s cryptocurrency legislation.

Lee explained that current regulations primarily address anti-money laundering requirements and investor protection through existing frameworks.

The proposed legislation marks a fundamental change in how exchanges operate within the regulatory landscape. “Under the current system, virtual asset exchanges operate under a notification system that requires renewal every three years,” Lee stated during a media conference.

The new authorization framework would grant exchanges permanent operating status, elevating their position within the financial ecosystem. “This higher status means exchanges need governance rules that match their larger role and greater responsibilities,” he added.

Lee emphasized that licensed exchanges would no longer be treated simply as private businesses. “Once licensed, exchanges would no longer be treated simply as private enterprises but would assume characteristics akin to public infrastructure,” he explained.

This transformation necessitates governance mechanisms that align with their expanded role and responsibilities.

The chairman drew parallels with existing financial market structures to justify the proposed measures. “Excessive concentration of ownership could increase the risk of conflicts of interest and undermine market integrity,” Lee warned.

“Securities exchanges and alternative trading systems are already subject to ownership limits, making it reasonable to apply similar standards to virtual asset platforms,” he noted.

Industry Opposition and Enforcement Challenges

Major domestic exchanges have voiced strong opposition following reports about the ownership cap proposal. The joint council representing platforms including Upbit, Bithumb and Coinone warned the restrictions could hamper development of Korea’s digital asset sector.

Industry stakeholders argue the measures may place Korean operators at a competitive disadvantage compared to international counterparts.

The proposed limits would force substantial changes at leading exchanges if enacted as currently outlined. At Dunamu, which operates Upbit, Chair Song Chi-hyung and associated parties control more than 28 percent of company shares.

Coinone founder Cha Myung-hoon holds approximately 53 percent of his platform, meaning both would need to divest significant portions under the proposed framework.

The ruling Democratic Party has raised concerns about the policy’s alignment with international regulatory approaches.

Party representatives noted that similar ownership restrictions remain uncommon in other jurisdictions, potentially creating regulatory divergence.

This position adds political complexity to the legislative process as the government seeks to balance innovation with oversight.

Lee acknowledged ongoing discussions with the ruling party while maintaining the policy’s fundamental necessity. “While there is broad agreement on the policy’s necessity, discussions are ongoing over its scope and timing,” he confirmed.

“The Digital Asset Basic Act is a major legislative undertaking,” Lee stated. “Consultations with the National Assembly and relevant ministries will continue to ensure the bill moves forward without unnecessary delays,” he added.

The post South Korea’s FSC Pushes 20% Ownership Cap on Crypto Exchanges Despite Industry Opposition appeared first on Blockonomi.

TLDR

Tesla kept its Bitcoin holdings at 11,509 coins in the fourth quarter of 2025.

The company recorded a $239 million after-tax impairment loss due to a drop in Bitcoin’s price.

Tesla’s revenue for Q4 2025 reached $24.9 billion, slightly below expectations.

Tesla’s adjusted earnings per share of $0.50 surpassed analysts’ forecast of $0.45.

Despite the decline in Bitcoin’s value, Tesla made no changes to its Bitcoin position.

Tesla’s Bitcoin holdings remained unchanged during the fourth quarter of 2025, holding at 11,509 coins. The value of these holdings decreased sharply as bitcoin’s price fell from approximately $114,000 to $88,000. As a result, Tesla recorded a $239 million after-tax impairment loss on its digital assets.

Tesla’s Bitcoin Holdings Unchanged

Tesla made no changes to its Bitcoin holdings in the fourth quarter of 2025, keeping its position at 11,509 coins. The company did not buy or sell any bitcoin during the period, according to its latest earnings report. Despite the decline in Bitcoin’s value, Tesla opted to maintain its digital asset position, leaving its holdings flat.

The price of Bitcoin experienced a significant drop during the last three months of 2025, falling from about $114,000 to $88,000. This decline led Tesla to report an after-tax impairment loss of $239 million on its Bitcoin holdings. Even with this loss, Tesla chose to hold steady and make no changes to its Bitcoin position during the quarter.

Impairment Loss Impact on Q4 Earnings

Tesla’s Q4 earnings report showed that the drop in Bitcoin’s value negatively impacted the company’s digital asset portfolio. Despite the impairment loss, Tesla’s overall earnings remained stable. The company reported revenue of $24.9 billion for the quarter, slightly below the expected $25.1 billion.

The impairment loss of $239 million did affect Tesla’s overall results, reflecting the volatility of digital assets on its balance sheet. However, Tesla’s adjusted earnings per share of $0.50 exceeded analyst expectations of $0.45. In after-hours trading, Tesla’s stock rose by 3.4%, reflecting investor optimism despite the challenges with digital assets.

Tesla has held Bitcoin since 2021, initially acquiring 43,200 coins worth approximately $1.7 billion. After selling 75% of its Bitcoin holdings in 2022 near the market’s bottom, the company has kept its holdings relatively stable. With the recent impairment, Tesla’s strategy appears unchanged, continuing to hold 11,509 Bitcoin despite the recent price decline.

In its Q4 report, Tesla emphasized that it had not made any purchases or sales of Bitcoin in the last quarter. The decision to keep the same number of Bitcoin coins aligns with its approach to digital assets, which has remained consistent since the 2022 sale.

The post Tesla Reports $239 Million Loss on Bitcoin Holdings in Q4 2025 appeared first on Blockonomi.

TLDR:

Cash usage in eurozone transactions plummeted from 40% in 2019 to just 24% in 2024 as digital payments surge 

Digital euro will serve as legal tender requiring all merchants accepting digital payments to adopt the system 

E-commerce now represents over one-third of transaction value, creating urgent need for digital payment solutions 

ECB official rejects offline-only digital euro proposal, questioning its viability for addressing e-commerce requirements

 

European Central Bank Executive Board member Piero Cipollone has reinforced the institution’s commitment to developing a digital euro, framing the initiative as essential infrastructure rather than a defensive measure.

Speaking in a recent interview, Cipollone emphasized that the project addresses fundamental gaps in Europe’s payment ecosystem while reducing reliance on non-European providers amid growing geopolitical tensions.

Bridging the Digital Payment Gap in European Commerce

The ECB official outlined how technological advancement has transformed payment behaviors across the eurozone. Cash usage has declined sharply from 40% of daily transactions in 2019 to just 24% in 2024.

This shift reflects changing consumer preferences, particularly as e-commerce now represents over one-third of transaction value. Traditional banknotes and coins cannot serve digital commerce needs, creating a void the central bank aims to fill.

Cipollone explained that the ECB’s mandate requires providing payment methods and ensuring system functionality.

“We might ask ourselves whether these two requirements are met, or whether the payments system is so fragmented that we don’t have a digital way to pay seamlessly across Europe without relying on non-European providers,” he stated.

The digital euro would establish a unified standard accepted across all member states. Merchants accepting digital payments would be required to accept this legal tender, eliminating fragmentation caused by multiple private sector standards.

The proposal represents an evolution of central bank responsibilities rather than innovation. Cipollone noted that “ten years ago it was less problematic” when cash dominated transactions.

However, the rapid decline in central bank money usage for retail purchases has forced adaptation. Describing the initiative, he said the digital euro is “public money in digital form,” preserving the accessibility citizens once enjoyed with physical currency.

Private sector involvement remains crucial to the ECB’s vision. The institution has long encouraged commercial entities to develop pan-European solutions.

Cipollone noted that a public digital euro standard would actually facilitate private sector development by providing common infrastructure.

Payment service providers could build upon this foundation rather than creating competing proprietary systems.

Geopolitical Considerations and Parliamentary Concerns

While Cipollone resisted characterizing the digital euro as purely defensive, he acknowledged heightened geopolitical risks. “All these potential geopolitical tensions and the weaponisation of every conceivable tool clearly increase the level of risk,” he observed.

A European-controlled infrastructure built on domestic technology would reduce excessive dependencies. Citizens would then choose their preferred balance between public and private payment solutions.

Some European Parliament members and industry voices have suggested waiting for banking sector alternatives. The parliamentary rapporteur proposed focusing on payment system development through commercial channels.

Cipollone welcomed private sector integration efforts but maintained that public provision remains an ECB responsibility. The digital euro would enhance systemic resilience regardless of parallel commercial developments.

One suggestion involves limiting the digital euro to offline functionality only. Cipollone questioned this approach given the project’s e-commerce objectives. “How can an offline solution be used to pay in the e-commerce space? I don’t know,” he remarked.

The central bank seeks viable European options for digital commerce transactions currently dominated by foreign platforms.

Regarding monetary policy independence, Cipollone dismissed concerns about external political pressures. The ECB focuses exclusively on eurozone economic conditions and price stability targets.

Describing current conditions, he said “we are in a good place” with recent GDP resilience and inflation near the 2% target.

Investment growth particularly encourages optimism as it supports both demand and productive capacity expansion without threatening price stability.

The post ECB’s Cipollone Defends Digital Euro Amid Rising Geopolitical Tensions and Payment Fragmentation appeared first on Blockonomi.

TLDR

21Shares predicts XRP could reach $2.45 in a base case scenario by the end of 2026.

The firm forecasts a potential price rise to $2.69 in the bull case scenario due to increased institutional adoption.

In the bear case scenario, XRP’s price may drop to $1.60 if adoption stagnates and market conditions worsen.

21Shares highlights that XRP has entered a phase of market-driven price discovery after the Ripple-SEC lawsuit resolution.

The firm’s analysis compares XRP’s potential to Ethereum’s 2017-2018 trajectory, suggesting a possible breakout in 2026.

Asset manager 21Shares has released its XRP price predictions for 2026, highlighting the cryptocurrency’s potential for both growth and decline. The firm has provided three possible scenarios for the token’s price, based on different market conditions. In a detailed forecast, 21Shares presents a base case, a bull case, and a bear case scenario for XRP’s future value.

Base Case: XRP Price Predicted to Reach $2.45

In the base case scenario, 21Shares analysts predict that XRP will reach $2.45 by the end of 2026. This represents a nearly 30% increase from its current price. The firm attributes this price prediction to regulatory stability, which should help support steady ETF flows and incremental utility for the cryptocurrency.

According to 21Shares, the market environment in this scenario will see XRP benefiting from regulatory clarity. The removal of legal uncertainties, especially following the Ripple-SEC lawsuit’s resolution, will allow XRP to emerge from its historical struggles. This stability is expected to provide a solid foundation for continued price growth, despite ongoing market fluctuations.

In the bull case scenario, 21Shares expects XRP’s price to rise to $2.69. This would mark a 40% increase from its current level. The analysts predict that the increase will be driven by the scaling of institutional real-world asset (RWA) adoption and potential repricing due to supply exhaustion.

The firm suggests that as institutional investors show more interest in XRP, demand could push the price higher. Moreover, the increase in XRP’s utility within financial services may contribute to its broader adoption. This scenario is fueled by rising institutional interest, which could lead to stronger price momentum over time.

On the other hand, the bear case scenario presents a possible price drop to $1.60, representing a 16% decline. 21Shares suggests that stagnant adoption and capital rotation could offset the benefits of XRP’s legal victory. While the Ripple-SEC lawsuit’s conclusion has cleared some hurdles, the market may not fully embrace XRP if adoption slows down.

This scenario assumes that broader market factors, such as shifting investor sentiment or market-wide downturns, would outweigh any positive developments for XRP. The analysts warn that without significant adoption drivers, XRP could face downward pressure despite the legal clarity surrounding the asset. This outcome would result in a decline in price as XRP struggles to gain traction in a competitive market.

Here our own XRP predictions for 2026:

Base case – $2.45 (50%)
Bull case – $2.69 (30%)
Bear case – $1.60 (-16%)

Here's why: https://t.co/yzrZQyAb6z pic.twitter.com/Qikzf9aPso

— 21shares (@21shares) January 28, 2026

XRP Enters 2026 with Market-driven Price Discovery

Looking ahead to 2026, XRP finds itself at a crucial turning point. The cryptocurrency has entered a phase of market-driven price discovery, having shed the legal overhang that previously weighed on its value. According to 21Shares, XRP’s price is now determined by institutional fundamentals rather than speculative hype or regulatory uncertainty.

With legal clarity now achieved, XRP can focus on its true utility within the cryptocurrency ecosystem. The firm compares the token’s potential to Ethereum‘s trajectory between 2017 and 2018, when DeFi projects propelled its price due to proven use cases. This shift from speculative volatility to practical value could lay the groundwork for XRP’s breakout in 2026.

The post XRP Price Prediction for 2026: Bull and Bear Scenarios Explained appeared first on Blockonomi.

TLDR

Coinbase plans to participate in the Trump Accounts program by matching the $1,000 government contribution for eligible children of its employees.

The company aims to make its contribution in Bitcoin, marking a shift from traditional financial assets.

Coinbase CEO Brian Armstrong highlighted the importance of early investment and financial literacy for children.

Other major financial institutions, including Bank of America and JPMorgan Chase, have also pledged to match the $1,000 deposit.

Trump Accounts will launch in July 2026, with sign-ups and documentation processes starting in the spring of that year.

Coinbase announced its plans to participate in President Donald Trump’s newly launched Trump Accounts program, a new initiative designed to provide U.S. children with financial support. The company intends to match the federal government’s $1,000 deposit for eligible children of its employees, but with a twist. Coinbase plans to deliver its contribution in Bitcoin, instead of traditional financial assets.

Coinbase Supports Trump Accounts Initiative

Coinbase CEO Brian Armstrong shared the company’s intentions to support the Trump Accounts initiative, a new financial program for children. The initiative offers a $1,000 deposit from the federal government to U.S. citizens born between 2025 and 2028. Armstrong stated that Coinbase is committed to matching the $1,000 for eligible children of its employees, in line with the government’s plan.

“We’re proud to join @POTUS’s initiative by matching the $1,000 from the U.S. Treasury for all eligible children of Coinbase employees,” Armstrong posted on social media. He emphasized the importance of early investment, pointing out that “starting to invest early is more important than ever” for financial security and literacy.

Starting to invest early is more important than ever. @TrumpAccounts is a great move to kick-start financial security + literacy for children.

We're proud to join @POTUS's initiative by matching the $1k from the U.S. Treasury for all eligible children of Coinbase employees.… https://t.co/TSXOhTMHXc

— Brian Armstrong (@brian_armstrong) January 28, 2026

Coinbase’s move marks a new approach, as it considers delivering its $1,000 matching contribution in Bitcoin. Armstrong expressed his hope that the company could pay the $1,000 in cryptocurrency, pushing further into the financial mainstream.

Private Sector Joins Trump Accounts Movement

Coinbase joins several large financial institutions in supporting the Trump Accounts program. Both Bank of America and JPMorgan Chase have already committed to matching the government’s $1,000 contribution for eligible children. These institutions are also offering additional perks, such as pretax payroll deductions, to encourage employee participation.

The Trump Accounts program, part of the One Big Beautiful Bill Act, qualifies U.S. citizen babies born between January 1, 2025, and December 31, 2028, for an automatic $1,000 government deposit into a tax-advantaged account. These accounts must be invested in low-fee, diversified U.S. stock index funds and are locked until the child reaches the age of 18. At that point, the funds can be used for education, home purchases, or starting a business.

Philanthropists, such as rapper Nicki Minaj, have also pledged support for Trump Accounts. Minaj specifically promised to contribute to children in underserved communities, emphasizing the importance of financial literacy for future generations.

Parents will be able to open Trump Accounts starting in July 2026. Sign-ups and documentation processes for the program are expected to begin in the spring of 2026. With participation from major financial players like Coinbase and traditional banks, the private sector is preparing to integrate this initiative into their employee benefits programs.

The post Coinbase Joins Trump Accounts Program, Plans Bitcoin Contributions appeared first on Blockonomi.

TLDR:

South Korea’s Democratic Party will submit the Digital Asset Basic Law before Lunar New Year holiday begins.

Stablecoin issuers must maintain minimum statutory capital of 5 billion KRW, mirroring electronic money rules.

New Virtual Asset Committee will be chaired by Financial Services Commission with inter-ministerial members.

Committee will provide rapid response mechanism for market disruptions including hacks and system failures.

 

South Korea’s Democratic Party has completed preparations for comprehensive cryptocurrency legislation ahead of the Lunar New Year.

The Digital Asset Basic Law establishes clear requirements for stablecoin issuers, including a minimum capital of 5 billion KRW.

A new Virtual Asset Committee will oversee market operations and emergency responses. The legislative push represents a significant step toward the formal integration of digital assets into the country’s financial system.

Stablecoin Issuers Face Capital Requirements

The Democratic Party’s Digital Asset Task Force convened its second plenary session on January 28 at the National Assembly Hall. Representative Lee Jung-moon chairs the task force responsible for finalizing the legislative framework.

The group reached consensus on establishing 5 billion won as the minimum statutory capital for entities seeking to issue stablecoins.

Representative Ahn Do-geol confirmed the capital requirement decision during a briefing following the meeting. “We agreed to set the legal capital requirement for stablecoin issuers at least 5 billion won,” Ahn stated.

The 5 billion won threshold mirrors existing regulations under the Electronic Financial Transactions Act. Electronic money businesses currently operate under this same capital standard.

Lawmakers justified the requirement by citing functional similarities between stablecoins and electronic money products. The task force plans to submit the bill for deliberation before the Lunar New Year holiday begins.

Party policy committees and government authorities will conduct final coordination on outstanding issues. The legislative timeline reflects urgency in establishing regulatory clarity for the virtual asset market.

Some elements remain unresolved pending further discussion. The Bank of Korea’s jurisdictional scope requires additional deliberation among stakeholders.

Restrictions on major shareholder ownership in stablecoin issuers also need policy committee review. These sensitive matters will be addressed through subsequent coordination efforts.

Virtual Asset Committee to Manage Market Risks

The legislation creates a new inter-ministerial body called the Virtual Asset Committee. The Financial Services Commission chairman will lead this consultative organization.

The Bank of Korea deputy governor will serve on the committee. The vice minister of the Ministry of Economy and Finance will also participate in committee operations.

The committee structure enables coordinated responses to market disruptions. Hacking incidents and system failures fall under the committee’s purview.

Members can convene quickly to address emerging threats to market stability. The arrangement facilitates communication between regulatory agencies and financial authorities.

The Digital Asset Basic Law represents the formal title for the comprehensive legislation. Previous discussions referred to the measure using various working titles.

The Democratic Party settled on this designation to reflect the law’s foundational nature. The name emphasizes the bill’s role in establishing basic principles for digital asset governance.

Market participants have awaited regulatory clarity on stablecoin operations. The legislation addresses issuance requirements and supervisory frameworks systematically.

The 5 billion won capital standard provides concrete guidance for prospective issuers. The Virtual Asset Committee offers institutional infrastructure for ongoing market oversight and risk management.

The post South Korea Sets 5 Billion KRW Capital Requirement for Stablecoin Issuers Under New Digital Asset Law appeared first on Blockonomi.

TLDR

Strive increased its Bitcoin holdings to over $1.1 billion, making it one of the top 10 largest publicly traded Bitcoin holders.

The company acquired 333.89 Bitcoin at an average price of $89,851, bringing its total holdings to 13,131.82 BTC.

Strive paid off 92% of the debt accrued from its recent acquisition of Semler Scientific and plans to retire the remaining debt by April.

The company completed a 1.3 million-share follow-on offering of its preferred stock SATA, priced at $90 per share.

Strive’s follow-on offering received more than $600 million in demand, showing strong investor interest in its digital credit strategy.

Strive, a publicly traded financial services company, has boosted its Bitcoin holdings to over $1.1 billion. This increase places the company among the top 10 largest publicly traded Bitcoin holders. Strive acquired 333.89 Bitcoin for an average price of $89,851, bringing its total Bitcoin holdings to 13,131.82 BTC.

Strive Bitcoin Acquisition Pushes Company into Top 10 Holders

Strive’s latest acquisition solidifies its position as one of the largest publicly traded Bitcoin holders. The company added 333.89 BTC at an average price of $89,851 per coin. This move brings Strive’s total Bitcoin holdings to 13,131.82 BTC, worth over $1.1 billion.

Strive’s Bitcoin strategy has become a key part of its financial operations. The company’s decision to significantly increase its holdings reflects its long-term commitment to cryptocurrency. By managing a substantial Bitcoin treasury, Strive aims to maximize the asset’s potential.

Strive has also successfully reduced its debt from its acquisition of Semler Scientific. The firm paid off 92% of the debt accrued from this deal, which was completed recently. Strive plans to retire the remaining debt by April, marking a rapid and strategic financial move.

Strive’s Chairman and CEO Matt Cole highlighted the company’s focus on managing a “Bitcoin-powered treasury.” “By quickly returning to a preferred equity-only amplification structure, we are putting our money where our mouth is,” Cole stated. This strategy aligns Bitcoin’s long-term potential with Strive’s financing approach.

Successful Follow-on Offering Highlights Investor Confidence

Strive closed a 1.3 million-share follow-on offering of its preferred stock SATA, priced at $90 per share. The offering saw more than $600 million in demand, showcasing strong investor interest. Strive’s Chief Investment Officer, Ben Werkman, called the offering’s success a reflection of “growing investor demand for digital credit.”

Strive raised $750 million last May to buy Bitcoin, further demonstrating its commitment to digital assets. This follows the company’s previous efforts to encourage GameStop to adopt Bitcoin as part of its financial strategy. Despite a decrease in stock price, Strive continues to build investor confidence with its clear strategic focus.

Strive’s shares have dropped nearly 10% this week, trading at $0.80. However, the company remains a key player in the growing intersection of traditional finance and cryptocurrency.

The post Strive Acquires More Bitcoin, Pays Down Debt Following Semler Merger appeared first on Blockonomi.

TLDR

WisdomTree has expanded its tokenized funds offering to the Solana network, providing access to a full range of financial products.

Both institutional and retail investors can now mint, trade, and hold tokenized funds directly on Solana.

The tokenized products available include money market funds, equities, fixed income, and asset allocation strategies.

Users can access the funds through WisdomTree Connect and WisdomTree Prime platforms, with USDC on-ramp options.

Solana’s high transaction speed and low fees played a key role in WisdomTree’s decision to deploy on the network.

WisdomTree has expanded its tokenized funds offering to the Solana network, moving beyond Ethereum and other major chains. This development enables both institutional and retail investors to mint, trade, and hold WisdomTree’s entire range of tokenized products. These include money market products, equities, fixed income, and more, all structured as regulated exchange-traded offerings.

Expansion to Solana Provides More Access Points for Users

WisdomTree’s decision to bring its full suite of tokenized funds to Solana reflects a growing demand for accessible blockchain-based financial products. By deploying these funds across multiple blockchains, the firm aims to reach a broader audience while maintaining compliance standards. Users can now access these funds through WisdomTree Connect and WisdomTree Prime platforms, offering seamless on-chain participation.

For investors, the integration with Solana provides a unique advantage. It allows users to mint and trade tokenized products directly on Solana, a blockchain known for its high throughput and low transaction costs. As part of the expansion, users can also on-ramp USDC directly from Solana into these platforms, enabling stablecoin-based subscriptions to regulated products. This setup aligns with the broader trend of allowing crypto-native users to access regulated assets without relying on traditional cash systems.

WisdomTree Leverages Solana’s High Throughput and Low Fees

Solana’s infrastructure was a key factor in WisdomTree’s choice to expand onto the network. The blockchain’s high transaction speed and cost-effectiveness were critical in scaling the tokenized fund products. Nick Ducoff, head of institutional growth at the Solana Foundation, emphasized that the network’s ability to support growing demand at scale made it an attractive option for WisdomTree.

Solana now ranks as the fourth-largest network for distributed tokenized assets. According to RWA.xyz data, it holds around $1.3 billion in on-chain RWA value, accounting for roughly 5.6% of the total distributed asset market share. While Ethereum still dominates this space with over 60% market share, Solana’s increasing adoption for tokenized products reflects its competitive edge in transaction speed and cost efficiency.

WisdomTree has been a leader in tokenizing traditional assets, using blockchain technology to extend existing financial products. The move to Solana builds on this model, making the entire range of tokenized funds available rather than creating separate crypto-only offerings. This approach contrasts with the traditional method of issuing isolated pilot programs, positioning WisdomTree as a forward-thinking player in the financial blockchain ecosystem.

The post WisdomTree Brings Complete Tokenized Funds Portfolio to Solana appeared first on Blockonomi.

TLDR:

Coinbase convenes six world-renowned experts to assess quantum computing risks to blockchain cryptography systems. 

Advisory board will publish position papers and provide real-time analysis of quantum computing breakthroughs. 

Bitcoin and Ethereum’s elliptic-curve cryptography could face challenges from future large-scale quantum computers. 

Coinbase updates Bitcoin address handling and develops post-quantum signature schemes like ML-DSA for protection.

 

Coinbase has established an independent advisory board comprising leading experts in quantum computing and cryptography to evaluate potential security risks to blockchain systems.

The exchange announced the formation of this specialized panel to prepare the cryptocurrency industry for future quantum computing advances.

Six distinguished researchers will provide guidance on safeguarding digital assets against emerging technological challenges that could affect cryptographic foundations.

Expert Panel to Guide Industry Preparedness

The advisory board includes Professor Scott Aaronson from the University of Texas at Austin, who directs the Quantum Information Center. Professor Dan Boneh from Stanford University brings cryptography expertise as Co-Director of the Stanford Center for Blockchain Research.

Justin Drake, an Ethereum Foundation researcher, focuses on long-term security and post-quantum resilience. Professor Sreeram Kannan, founder of EigenLayer, contributes knowledge in blockchain scalability.

Professor Yehuda Lindell serves as Coinbase’s Head of Cryptography with specialization in secure multiparty computation. Professor Dahlia Malkhi from UCSB heads the Foundations of Fintech Research Lab.

The board will publish position papers evaluating quantum computing’s current state and its relationship to blockchain technology.

Members will issue recommendations for individuals, developers, and organizations to protect against long-term quantum risks.

Additionally, the panel will respond to major quantum computing breakthroughs with independent analysis and practical guidance. This proactive approach aims to address concerns before quantum computers reach practical scale.

Brian Armstrong, Coinbase’s founder, shared the announcement on X, stating that “Security is our highest priority at Coinbase.” He noted that “Preparing for future threats, even those many years away, is crucial for our industry.”

Armstrong added that “Quantum computers could have implications for blockchain/crypto” and emphasized the importance of thinking through these challenges.

We've set up an independent advisory board on quantum computing and blockchain.
Security is our highest priority at Coinbase. Preparing for future threats, even those many years away, is crucial for our industry.

Quantum computers could have implications for blockchain/crypto.… pic.twitter.com/JN5EJXT6oH

— Brian Armstrong (@brian_armstrong) January 26, 2026

The executive expressed honor in bringing together distinguished researchers to ensure proper consideration of these matters.

Most modern blockchains, including Bitcoin and Ethereum, rely on elliptic-curve cryptography for security. While these systems remain secure currently, large-scale quantum computers could eventually compromise them.

The timeline for such developments remains uncertain, yet the industry recognizes the need for advance preparation. Collaboration across disciplines and rigorous cryptographic research will guide mitigation strategies.

Coinbase Implements Multi-Layered Security Strategy

The advisory board represents one component of Coinbase’s comprehensive post-quantum security roadmap. The exchange is updating Bitcoin address handling systems to align with current best practices.

Internal key management systems are receiving enhancements to incorporate available protections. These immediate product improvements complement longer-term research initiatives.

Coinbase is advancing support for post-quantum signature schemes within secure multiparty computation systems. The company specifically mentioned ML-DSA as part of its cryptographic research efforts.

These signature schemes are designed to resist attacks from quantum computers. Development work continues to integrate these technologies into production systems.

The independent oversight structure ensures unbiased evaluation of quantum-related challenges. The advisory board operates separately from Coinbase’s internal teams to maintain objectivity.

This governance model provides both the company and the broader cryptocurrency ecosystem with credible guidance. External expertise helps validate internal security decisions and industry-wide recommendations.

The board will release its first position paper in the coming months. This initial publication will establish a baseline assessment of quantum risk for the blockchain industry.

The document will also outline a roadmap for building resilience against potential quantum threats. Subsequent papers will address specific technical challenges and emerging developments in quantum computing research.

The post Coinbase Forms Advisory Board to Address Quantum Computing Threats to Blockchain Security appeared first on Blockonomi.

TLDR:

Ethereum’s gas cap surged from 30 million to 60 million, but meaningful applications remain scarce despite progress. 

Buterin earned $70,000 on Polymarket by betting against irrational market sentiment in prediction market experiments. 

Oracle manipulation incident exposed how single Web2 posts can determine million-dollar on-chain settlement outcomes. 

Ethereum serves as a defense against AI centralization by providing permissionless access for humans and AI agents alike.

 

Vitalik Buterin has returned to Chiang Mai with sharp observations about blockchain technology’s evolution and potential pitfalls.

The Ethereum co-founder shared his concerns about the growing divide between technological advancement and meaningful application development during a recent interview.

He expressed fears that the crypto industry could devolve into pure speculation without building real-world value, warning that this outcome would ultimately lead to the sector’s demise.

Technology Advancement Masks Application Layer Struggles

Ethereum has achieved remarkable technical milestones over the past year, according to Buterin. The network’s gas cap increased from 30 million to 60 million, with ambitious plans to reach 300 million in the coming period.

Zero-knowledge Ethereum Virtual Machine implementations have been successfully deployed, while wallet infrastructure has seen substantial improvements.

Despite these technical victories, Buterin identified troubling patterns at the application layer. “The biggest shift is that I see a huge divide between technology and application,” he stated during the interview.

The community once harbored diverse visions for decentralized autonomous organizations and applications that could reshape social collaboration. Many developers have abandoned these original missions, he noted.

The explosion of memecoins represents this shift, culminating in Donald Trump’s token launches that Buterin views as emblematic of the industry’s current challenges.

Prediction markets emerged as the only notable success story in 2025, yet even this achievement carries limitations. Platforms like Polymarket focus heavily on short-term betting scenarios rather than meaningful long-term applications.

“In theory, prediction markets are successful as a tool, but we need more meaningful applications,” Buterin explained.

He advocates for governance models such as Robin Hanson’s Futarchy, where prediction markets determine policy means while citizens vote on goals. MetaDAO currently explores this approach.

Oracle Vulnerabilities Expose Critical Infrastructure Weaknesses

Buterin revealed he earned $70,000 from a $440,000 investment on Polymarket by betting against irrational market sentiment.

“My approach is simple: I look for markets that are in crazy mode and bet that crazy things won’t happen,” he explained. When market sentiment reaches irrational extremes, contrarian positions typically prove profitable.

However, he highlighted a significant vulnerability in oracle systems that threatens the entire prediction market ecosystem.

A Ukraine battlefield prediction market demonstrated this risk when an Institute for the Study of War employee allegedly manipulated data showing Russian control of a railway station.

This incident transformed a 5% probability event into a certain outcome, potentially triggering improper payouts. Buterin emphasized that current oracle data sources from Web2 platforms “never thought that a message they sent would determine the ownership of $1 million on the chain.”

Two primary solutions exist for oracle problems, according to Buterin. Centralized models rely on trusted entities like Bloomberg for accurate information. Decentralized approaches use token voting, as implemented by UMA protocol.

However, UMA faces declining trust due to game theory flaws where large holders can manipulate voting results. “I always hope that in the future we can find a better solution,” Buterin noted. Chainlink dominates the current DeFi landscape despite its complex and centralized mechanisms.

Ethereum Positioned as Defense Against AI Centralization

Buterin outlined three primary motivations driving his current work. “My biggest fear now is the future: the entire industry will eventually degenerate into a place of 100% speculation, only speculation, no application,” he revealed.

Building better decentralized autonomous organizations and applications across various sectors remains essential to avoiding this fate.

Ethereum serves as a permissionless world computer where humans, companies, and AI agents enjoy equal access rights.

AI can hold assets, conduct transactions, and participate in governance on the platform. “Back to the essence, Ethereum is a decentralized world computer,” Buterin explained.

Potential applications include providing bank accounts for AI agents, enhancing prediction markets, and verifying content authenticity.

Buterin identified the application layer as Ethereum’s biggest overlooked risk rather than technical vulnerabilities. He envisions Ethereum becoming a core hub for decentralized applications across all sectors, not just finance.

The platform must deliver true ownership where users control their assets without corporate intermediaries. “If we have the strongest decentralized technology and only use it to build a bunch of toys or casinos, that’s the biggest risk,” he warned.

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