Blockonomi

TLDR:
U.S. ETF launches reached a record two-month pace, with about 390 new funds entering the market in total.
Derivatives power 54% of this year’s launches, while leveraged and inverse funds account for over one-third.
U.S. ETF assets reached $15.60 trillion in May as investors continued moving capital away from mutual funds.
Closures also accelerated, with 73 leveraged or inverse ETFs shutting by July 23, triple the total for 2025.
TheU.S. ETF market is adding products at record speed, with issuers favoring leveraged, inverse, and derivatives-based strategies. A Bloomberg and Goldman Sachs chart shared by The Kobeissi Letter showed about 390 launches during the latest two-month period.
The US ETF industry is seeing unprecedented growth:
There have been ~390 US-listed ETF launches over the last 2 months, the largest 2-month increase on record.
This figure has more than tripled since the start of 2024.
As a result, more ETFs have launched over the last 2… pic.twitter.com/T9gx8TwfxC
— The Kobeissi Letter (@KobeissiLetter) August 1, 2026
That marked the largest increase since the series began in 2016 and exceeded the early-2024 pace by more than three times. Issuers therefore introduced more funds in two months than during 2024’s first half.
Derivatives Drive a Record Wave of New ETF Launches
The composition of the launch wave has changed alongside its scale. Kobeissi reported that derivatives power 54% of this year’s new products, while leveraged or inverse funds represent more than one-third.
Moreover, fund managers have filed applications for over 1,000 leveraged products. These filings show issuers expanding short-term trading tools linked to stocks, cryptocurrencies, artificial intelligence, and other volatile industries.
Although industry totals vary, every major dataset points to a record product-development cycle. The differences arise as research firms count listings, registrations, share classes, and global products using separate methodologies.
For instance, Morningstar data cited by the Financial Times counted 1,084 new ETFs by mid-July. That total was already approaching the full-year 2025 record of 1,161 launches.
Similarly, MarketWatch recorded 953 launches during 2026 through July 23. While the figures are not directly comparable, both confirm that the pace of new product creation has accelerated sharply.
Regulatory changes have also supported this expansion. In 2019, the Securities and Exchange Commission adopted Rule 6c-11, creating a standardized operating framework for qualifying ETFs.
As a result, fund managers no longer faced the same costs and delays associated with seeking individual exemptive orders. The rule therefore gave established firms and smaller specialists a simpler route to market.
At the same time, investor assets continued moving toward exchange-traded products. Investment Company Institute data showed that U.S. ETF assets reached $15.60 trillion in May 2026.
ICI also reported that domestic ETF assets increased from $2.1 trillion in 2015 to $13.4 trillion by the end of 2025. This growth reflected broader adoption among retail investors, financial advisers, and institutions.
Daily Resets and Fund Closures Increase Investor Risks
However, leveraged and inverse products differ substantially from conventional index funds. These products commonly use swaps, futures, or options to deliver a multiple of an asset’s daily return.
According to SEC warnings, most leveraged and inverse ETFs reset their exposure after every trading session. Consequently, returns over longer holding periods can differ sharply from the advertised daily multiple.
This divergence results from daily compounding, market volatility, and continuous portfolio rebalancing. Moreover, single-stock products concentrate exposure and can lose most or all their value during extreme price movements.
At the same time, fund closures have increased alongside launches. MarketWatch reported that 73 leveraged or inverse ETFs had closed by July 23, triple the number shuttered throughout 2025.
These figures show that issuers are testing increasingly narrow products before discontinuing those that fail to attract sufficient assets or trading volume. As a result, investors must examine each fund more carefully.
Fees, liquidity, trading spreads, derivatives exposure, daily-reset mechanics, and long-term fund viability now matter as much as the underlying investment theme. Therefore, greater product choice has also introduced additional complexity.
Overall, the U.S. ETF market is expanding through both low-cost portfolio funds and tactical trading products. Its record launch pace now reflects growing scale, deeper specialization, and greater investor risk.
The post U.S. ETF Launches Hit Record Pace as Leveraged Products Surge appeared first on Blockonomi.

TLDR:
xrpld 3.2.1 limits oversized validator manifests before decoding, reducing memory and processing strain.
The hotfix caps untrusted manifest batches, peer greetings, cache growth, and disk persistence across nodes.
XRP Ledger consensus continued closing ledgers normally despite pressure on peer-to-peer infrastructure.
Node operators must upgrade, verify Ripple’s signing key, and complete a second restart after installation.
The XRP Ledger has released xrpld 3.2.1 after a validator-manifest flood strained parts of its peer-to-peer infrastructure on July 31. Despite the disruption, the blockchain continued closing ledgers normally, showing that consensus remained active while individual servers faced abnormal data pressure.
XRP Ledger 3.2.1 is now available.
This fixes the manifest flood observed on Friday, July 31. The XRPL continued closing ledgers normally throughout. A post-mortem will follow soon for the community.
Nodes previously accepted, stored and re-broadcast an unlimited number of… pic.twitter.com/ZOdT8REQCw
— XRP Ledger Operations (@XRPLOperations) August 1, 2026
Consequently, XRP Ledger Operations instructed node administrators to install the hotfix immediately and perform a second restart shortly after installation. The latest production build adds limits designed to prevent unknown validator data from consuming excessive memory, bandwidth, storage, and processing capacity.
How the Manifest Flood Strained XRPL Peer Infrastructure
Validator manifests connect a validator’s permanent master identity to the temporary signing key used during consensus. This structure allows operators to rotate working keys while keeping master credentials offline and preserving the validator’s established identity.
However, earlier xrpld versions could accept, store, and rebroadcast unlimited manifests linked to unknown validator keys. As a result, excessive untrusted data could spread across connected peers and accumulate inside local caches.
The incident affected peer-layer message propagation rather than balances, transactions, or ledger rules. Although XRPL continued processing transactions and closing ledgers, strained peer connections could still weaken connectivity and slow information distribution.
To address that exposure, version 3.2.1 introduces six commits affecting 13 files. Together, the changes apply controls at four points where oversized or repeated manifest traffic could burden a node.
First, xrpld rejects individual manifests that exceed the expected encoded size before decoding begins. Therefore, oversized inputs cannot trigger unnecessary processing.
Second, nodes discard incoming batches containing excessive numbers of untrusted manifests. Nevertheless, the software avoids automatically disconnecting older peers that send oversized batches, reducing fragmentation risks during the upgrade period.
Third, the hotfix limits the bulk manifest greeting exchanged when nodes establish new peer connections. Trusted records remain available, while untrusted gossip is restricted across both sending and receiving paths.
Finally, each node can store only 100 manifests associated with unknown validator keys. Once that threshold is reached, additional entries are rejected, and untrusted manifests are no longer written to disk.
Four Safeguards and the Required Second Restart
After installing the update, administrators were instructed to wait one or two minutes and confirm that xrpld remained operational. They do not need to wait for the node to become fully synchronized before completing the next step.
Once the updated service is confirmed as running, operators must restart xrpld again. The operations team described this second restart as an important final part of the upgrade process.
Meanwhile, administrators using packaged installations should verify Ripple’s current software-signing key. Ripple rotated the GPG key used to sign xrpld packages in February 2026. Therefore, systems that have not trusted the replacement key may fail to receive automatic upgrades.
Overall, the XRP Ledger hotfix introduces no network amendment and does not change transaction-processing rules. Instead, it establishes firm limits on untrusted peer data before that information reaches decoding, rebroadcasting, caching, or permanent storage.
By restricting manifest size, batch volume, connection greetings, and unknown-key storage, XRPL has closed four paths used during the July 31 flood. Although the network continued producing ledgers, the incident showed that peer-layer abuse can still strain individual servers while consensus remains operational.
The post XRP Ledger Releases 3.2.1 Hotfix to Stop Validator Manifest Flooding appeared first on Blockonomi.

TLDR:
South Korea posted a 560.3 billion won net stablecoin outflow in June, extending the trend to 18 months.
Cumulative net stablecoin transfers since January 2025 reached about 14.9 trillion won, according to data.
June outflows equaled 77.6% of Korean retail investors’ net purchases of foreign shares during the month.
Offshore platforms attract Korean traders with derivatives, DeFi, staking, and tokenized asset products.
South Korea recorded an 18th straight month of net stablecoin transfers to overseas exchanges in June, underscoring sustained demand for offshore crypto products. The five largest won-based exchanges sent 2.7625 trillion won abroad and received 2.2022 trillion won, producing a 560.3 billion won net outflow.
Although June’s total remained below several 2025 peaks, the uninterrupted direction of transfers carried greater significance than the monthly size alone. Reported figures showed monthly net outflows ranging from 459.3 billion won in July 2025 to 1.2049 trillion won in February 2025.
South Korean Stablecoins Post 18 Straight Months of Net Outflows to Overseas Exchanges
According to Yonhap News Agency, South Korea’s five major won-based crypto exchanges sent 2.7625 trillion won in stablecoins to overseas platforms in June 2026, while receiving 2.2022 trillion… pic.twitter.com/sDFsaBmDKN
— Wu Blockchain (@WuBlockchain) August 2, 2026
Across the full period beginning in January 2025, cumulative net transfers reached about 14.9 trillion won, based on the disclosed monthly totals.
Stablecoin Transfers Rival South Korea’s Overseas Stock Flows
The June outflow equaled 77.6% of the 722 billion won Korean retail investors spent buying foreign shares on a net basis. During the second quarter, the contrast widened as stablecoins recorded 1.6872 trillion won in net outbound transfers.
Over the same period, Korean investors became net sellers of overseas equities, reducing their foreign stock holdings by 1.6185 trillion won. The comparison places dollar-linked tokens alongside traditional overseas investing as an important channel for moving capital beyond domestic platforms.
However, the figures measure exchange transfers rather than permanent capital flight, since tokens can later return, remain in wallets, or enter decentralized applications. Notably, access remains the central driver behind the movement, as local exchanges continue concentrating mainly on spot trading.
By contrast, offshore platforms provide perpetual futures, staking, decentralized finance, tokenized real-world assets, and leveraged products linked to Korean companies. Those products have included exposure tied to Samsung Electronics, SK Hynix, and Hyundai Motor, expanding the range of markets available abroad.
A separate study found about 47 trillion won in crypto moved abroad or into personal wallets during the first half of 2026. Tiger Research and Chainalysis also reviewed 4.5 million wallets and estimated cumulative transfers of 687.6 trillion won since 2021.
The same research estimated that overseas trading activity generated approximately 1.4 trillion won in fees.
Offshore Leverage Raises Regulatory and Investor Risks
Among the main destinations, Hyperliquid offered Korean-linked perpetual contracts with leverage of up to 50 times. Moreover, SK Hynix-linked trading reportedly reached about $4 billion after the contract launched in February.
That activity shows stablecoins operating as collateral and settlement assets within global on-chain markets, rather than only as digital savings instruments. The expansion also increases exposure to liquidation losses, security breaches, and platform failures outside South Korea’s domestic regulatory system.
As a result, Bank of Korea officials have warned that wider token use could complicate capital-flow management and foreign-exchange oversight. Governor Rhee Chang-yong previously said won-backed tokens might make conversion into dollar-linked assets easier instead of reducing demand for dollars.
Meanwhile, the Financial Services Commission said in January that central provisions of second-stage digital-asset legislation remained unfinished.Those unresolved issues included the ownership structure permitted for stablecoin issuers operating under the planned framework.
Lawmaker Lee Jong-wook urged regulators to review oversight and investor safeguards as offshore transfers continue. For now, the 18-month pattern shows that investors are consistently using dollar-linked tokens to reach products unavailable on domestic exchanges.
The post South Korea Stablecoin Outflows Extend to 18 Months as Offshore Demand Grows appeared first on Blockonomi.

TLDR:
Qatar relayed a reported U.S. peace offer to Iran as regional leaders pushed to prevent renewed Gulf conflict.
Trump kept further strikes under review while Washington accused Tehran of violating a June maritime deal.
The Strait of Hormuz dispute centers on shipping access, proposed service fees, and control of navigation.
Oman offered a voluntary fee compromise, but Washington rejected charges tied to passage through Hormuz.
The United States has reportedly sent a new peace proposal to Iran through Qatar as Washington weighs another military escalation across the Gulf. The reported initiative emerged early Sunday while regional governments pressed both sides to avoid renewed attacks and protect commercial shipping.
BREAKING: The U.S. has made a last minute peace offer to Iran through Qatar, and Iran is now reviewing it, per initial reports.
Iran is highly likely to reject the offer, which means this was another TACO.
— The Hormuz Letter (@HormuzLetter) August 2, 2026
The Hormuz Letter, a regional news account on X, said Tehran was reviewing a “last-minute peace offer” delivered through Qatari channels. However, the account disclosed no terms, named no officials, and received no public confirmation from Washington, Doha, or Tehran at the time of publication.
Qatar Leads Last-Minute Talks as Washington Weighs Strikes
Separate reporting said Qatari mediators spoke Saturday with Iranian Foreign Minister Abbas Araqchi, White House envoy Steve Witkoff, and officials from Oman. Those discussions reportedly advanced talks concerning the Strait of Hormuz, although no agreement was announced.
The diplomatic push unfolded as President Donald Trump considered attacks on Iranian energy infrastructure. The review followed missile and drone incidents involving American forces, Gulf states, and merchant vessels.
During a Cabinet meeting at Camp David, Trump said negotiators could still secure an agreement. However, he accused Tehran of breaking previous commitments and kept further strikes under consideration.
The White House said Iran violated a June memorandum by targeting commercial ships and American personnel. Press secretary Karoline Leavitt further added that pressure would continue until meaningful negotiations began.
Regional leaders also increased direct outreach. Saudi Crown Prince Mohammed bin Salman reportedly urged Trump to de-escalate during a Saturday call. Qatar, the United Arab Emirates, Turkey, and Pakistan separately pressed Washington and Tehran to avoid measures that could widen the conflict across the Gulf.
Hormuz Shipping Dispute Blocks a Wider Ceasefire Deal
The Strait of Hormuz remains central as it carried roughly one-fifth of global oil and liquefied natural gas flows before the war. As a result, Iran seeks greater authority over shipping routes and has proposed charging vessels service fees.
Washington, on the other hand, maintains that the waterway must remain open without Iranian tolls or restrictions. Oman recently offered a Gulf-backed compromise involving voluntary contributions for navigation, environmental protection, and rescue services.
The plan would not grant Tehran exclusive control. However, the United States rejected including fees in the agreement under discussion. That disagreement followed earlier maritime arrangements that failed to produce a lasting settlement.
Initially, a June framework partially restored shipping and established a 60-day negotiating period covering the Strait of Hormuz and Iran’s nuclear program. However, talks later stalled after Iran attacked vessels travelling along a route it had not approved.
Despite that setback, Tehran continues exchanging messages through regional intermediaries while denying that direct negotiations with Washington are underway. Iranian officials maintain that diplomatic concessions cannot be discussed while the United States continues threatening military action.
Meanwhile, Foreign Minister Abbas Araqchi warned Turkey, Pakistan, and Saudi Arabia that Iran would respond decisively to another American or Israeli attack. Iranian-linked media also threatened energy facilities across the region if Iranian infrastructure were targeted.
Qatar’s mediation nevertheless keeps an important communication channel open. Doha previously hosted separate American and Iranian delegations and continues relaying messages between both governments.
The post U.S. Sends Reported Iran Peace Offer Through Qatar as Strike Risks Rise appeared first on Blockonomi.

TLDR:
CZ said spreading funds across independent wallets can reduce losses when one device or seed is compromised.
Galaxy Research linked three Coldcard attack waves to 1,367.05 BTC across 4,585 total affected addresses.
A firmware flaw weakened seed generation, allowing attackers to reconstruct keys without phishing or malware.
Multi-wallet security lowers concentration risk but increases backup, recovery, and operational complexity.
Binance founder Changpeng “CZ” Zhao reopened debate after a Coldcard flaw showed that hardware wallets can fail before transactions even begin. The incident exposed a security problem as affected devices could create weak recovery seeds, leaving funds vulnerable without phishing, malware, or theft.
Zhao said no crypto wallet is secure and advised dividing holdings across several wallets to limit losses from one failure. However, he warned that spreading assets creates risks, including lost backups, poor recovery planning, and mistakes across devices.
Even hardware wallets can have bugs. Even old wallets (with long history) can have bugs.
How to mitigate? Split your funds in a few wallets maybe? This has a different set of risks. Nothing is 100%.
Stay informed. Stay SAFU! https://t.co/9CHiNlbJbz
— CZ BNB (@cz_binance) August 1, 2026
Galaxy Research raised losses to 1,367.05 BTC across 4,585 addresses, worth about $88.6 million. Its earlier analysis traced 1,082.65 BTC from 1,196 addresses during a 41-minute sweep on July 30.
Coldcard Seed Flaw Exposed Weakness at Key Creation
Block’s Bitcoin engineering and security teams traced the weakness to a firmware integration error introduced in March 2021. Affected software could use a deterministic fallback instead of consistently relying on the hardware random-number generator for unpredictable recovery seeds.
That fallback used chip identifiers and timing data, allowing an attacker to narrow possible inputs and generate candidate seeds offline. The attacker could then derive public addresses and compare them with funded addresses visible on Bitcoin’s blockchain.
Once a match appeared, the corresponding private keys could transfer the funds. Coinkite said Coldcard Mk2 and Mk3 seeds created on firmware versions 4.0.1 through 4.1.9 may contain critically weak entropy.
It also warned that seeds generated on Mk4, Mk5, and Q devices before emergency updates could contain about 72 bits of entropy. Those devices were intended to provide 128 bits, making the affected seed space easier to search.
Coinkite issued firmware patches, but an update cannot strengthen an old seed already created by vulnerable software. Users must therefore update the device, generate a new seed, and move funds to addresses controlled by replacement keys.
Multi-Wallet Security Limits Risk but Adds Complexity
CZ’s multi wallet approach changes the security goal from finding one perfect device to limiting damage when one system fails. Basically, separate wallets with independently generated seeds can prevent one compromised recovery phrase from exposing an entire portfolio.
Using products from different manufacturers can also reduce dependence on one codebase, firmware design, or random-number process. Yet a multi wallet setup is safer only when each seed is created independently and every backup remains protected.
As a result, splitting funds across several wallets derived from the same vulnerable root seed would not remove the underlying exposure. Multisignature custody adds another safeguard by requiring several keys before funds can move.
However, Block warned that arrangements built entirely from vulnerable devices may still fail if compromised keys control the required quorum. A stronger structure requires independently generated keys, tested recovery procedures, and regular attention to vendor security notices.
Overall, the Coldcard case shows that a crypto wallet can protect keys offline yet still fail during key creation. Hardware wallets, on the other hand, remain useful, but the incident demonstrates that self-custody depends on secure generation, careful diversification, and rapid user response.
For users, multi wallet security may reduce concentration risk, although it increases the burden of protecting and recovering every key.
The post CZ Warns No Crypto Wallet Is Fail-Proof: Is Multi-Wallet Security the Future? appeared first on Blockonomi.

TLDR:
Japan’s ¥1.3438 quadrillion debt load leaves its fiscal strategy increasingly exposed to rising JGB yields.
Higher Japanese rates may support the yen but raise refinancing costs for banks, insurers, and finances.
A stronger yen could unwind carry trades, forcing investors to sell foreign bonds, equities, and crypto.
Japan’s $1.143 trillion Treasury position links rising JGB yields directly to U.S. borrowing conditions.
Japan’s effort to support the yen while containing borrowing costs is exposing a policy balance with consequences beyond its domestic economy. Rising JGB Yields are increasing pressure on public finances, currency policy, and international capital flows.
The strain reflects three decades of cheap money following the collapse of the country’s property and equity bubble. Low rates, quantitative easing, and bond purchases reduced financing costs while government debt expanded to historic levels.
Rising Bond Costs Test Japan’s Debt Strategy
EGRAG CRYPTO described the challenge as a conflict between protecting the currency and preserving the sovereign bond market. That tension is intensified by the Bank of Japan’s vast holdings, which reached ¥518.2 trillion in government securities on July 20.
https://t.co/gnAtbn1IhU
— EGRAG CRYPTO (@egragcrypto) July 31, 2026
A BOJ policymaker also said in May that the central bank still owned about half of all outstanding Japanese government bonds. Meanwhile, central government debt reached ¥1.3438 quadrillion in March, including bonds, borrowings, and financing bills.
Against that backdrop, higher interest rates could strengthen the yen and ease imported inflation from fuel, food, and raw materials. However, tighter monetary policy would also increase refinancing costs across one of the world’s largest sovereign debt markets.
Rising borrowing costs could also reduce the value of existing long-duration bonds. Consequently, banks, insurers, and pension funds with large government-debt portfolios could face mounting balance-sheet pressure as JGB yields increase.
Those risks became more visible in July when the benchmark 10-year yield reached 2.9%, its highest level since 1996. At the same time, the 30-year yield climbed above 4%, further tightening long-term financing conditions.
However, maintaining low interest rates would create a different set of pressures. Although such a policy could support bond prices, it could also leave the yen vulnerable to further weakness and raise import costs.
The BOJ therefore kept its policy rate at 1% while preserving room for another increase. Officials indicated that a rate hike could be considered as early as September if inflation risks continued.
Yen Support Risks Spilling Into Global Markets
That policy decision matters beyond Japan, considering the yen has long supported international carry trades. Investors typically borrow cheaply in yen before buying higher-yielding bonds, equities, and digital assets elsewhere.
Nevertheless, a stronger yen and higher domestic rates would make those positions more expensive to maintain. Investors could then sell foreign assets to repay yen-denominated funding, transmitting pressure across global markets.
The United States faces particular exposure as Japan remains the largest foreign holder of U.S. Treasury securities. Its holdings stood near $1.143 trillion in May, linking Japanese capital flows directly to American debt markets.
Source: Federal Reserve Bank
As JGB yields rise, domestic bonds may become more attractive to Japanese investors. Consequently, capital could return home, while Treasury sales used to finance currency intervention could place additional pressure on U.S. borrowing costs.
Currency intervention has already intensified. Japan may have spent as much as $58.97 billion buying yen on July 30 after the dollar approached ¥164.
Reuters later reported that the U.S. Treasury also purchased yen through the New York Federal Reserve. The action underscored coordinated concern over the currency’s decline and the wider risks surrounding disorderly exchange-rate movements.
The episode also recalls June 1998, when coordinated intervention included $833 million from the American side. Nevertheless, the market turmoil that followed had several larger and more immediate causes.
The IMF and Federal Reserve primarily linked the 1998 disruption to Russia’s default, the Asian financial crisis, and the near-collapse of Long-Term Capital Management. Therefore, the comparison highlights market vulnerability rather than proving that intervention alone causes financial instability.
The current risk lies in the interaction between rising debt costs, currency support, and cross-border funding. Japan must manage that adjustment carefully to avoid destabilizing its bond market and disrupting global liquidity.
The post Rising JGB Yields Put Japan’s Debt Strategy and Global Markets at Risk appeared first on Blockonomi.

TLDR:
BNB Chain alleges a former employee reused a tutorial wallet seed phrase to launch the ASTEROID token.
Four wallets acquired 79.67% of ASTEROID’s supply before selling most tokens for approximately $638,000.
Lookonchain estimated about $628,000 in trading profit, although ownership of the wallets remains unverified.
The case shows how retained seed phrases can preserve wallet access after private-key deletion and staff exit.
BNB Chain is pursuing legal action against a former employee accused of using retained wallet credentials to launch the ASTEROID Memecoin. The dispute centers on an educational wallet previously used in a token tutorial and later linked to a separate memecoin launch.
A wallet address was previously created by a former employee, which they then used to generate a token, as part of a video tutorial. That individual is no longer with the company as part of this incident.
The individual retained unauthorised access to the associated seed phrase…
— BNB Chain (@BNBCHAIN) August 1, 2026
The network said the individual kept unauthorized access to the wallet’s seed phrase after leaving the organization. According to its account, the former employee generated new access credentials and reused the address to create Asteroid Shiba, known as ASTEROID.
Seed Phrase Access Drives BNB Chain’s Legal Case
BNB Chain said it neither created, approved, promoted nor controlled the token. It also denied any affiliation with the wallet activity surrounding the ASTEROID Memecoin.
The organization is cooperating with authorities and preparing legal action, although it has not named the individual or disclosed the relevant jurisdiction. It also has not stated whether the proceedings will be civil, criminal or both.
Binance founder Changpeng Zhao repeated the allegations on X and warned users to remain cautious. However, the claims have not yet been tested through a court filing or judicial ruling.
On-chain analysis added a financial dimension during the disputed token launch. Lookonchain reported that four newly created wallets spent about $10,000 to acquire 796.7 million ASTEROID tokens.
That purchase represented 79.67% of the token’s total supply. The wallets later sold 718.8 million tokens for 1,103 BNB, valued near $638,000 at the time.
Lookonchain estimated the trades produced approximately $628,000 in profit. Still, public blockchain records alone do not prove who controlled the addresses.
The Block said it could not independently confirm that the four wallets belonged to the former employee. Linking an address to an individual generally requires evidence beyond transaction records.
The disputed launch also drew objections from an earlier project using the Asteroid Shiba name. However, that team denied involvement and said the newer token copied its identity.
ASTEROID Trading Data Raises Wallet Ownership Questions
The address had previously appeared during the creation of TST, a demonstration token featured in a February 2025 BNB Chain tutorial. The network later described TST as an unintended memecoin created while showing token deployment through Four.Meme.
Traders discovered TST after its name appeared in the tutorial. Speculation then pushed the token’s market capitalization above $50 million. Zhao said TST was not an official network token. As a result, the tutorial was removed, while the creator address reportedly held 0.13% of TST’s supply.
The latest dispute highlights the difference between deleting a private key and securing the recovery phrase behind it. Basically, a wallet can be restored when someone retains its seed phrase.
That detail makes employee offboarding central to the ASTEROID Memecoin case. Previously shared recovery phrases can preserve access even after local files or keys are deleted.
For blockchain organizations, tutorial wallets can carry reputational value long after their original purpose ends. Therefore, reusing a known address may influence how traders interpret a new token.
For now, the unresolved issues concern wallet ownership, legal jurisdiction and the evidence available to investigators. Until filings emerge, the allegations remain claims rather than established findings.
The post BNB Chain Pursues Legal Action Against Ex-Employee Over ASTEROID Memecoin appeared first on Blockonomi.

TLDR:
Galaxy Research links 1,367.05 BTC across 4,585 addresses to suspected thefts tied to Coldcard seeds.
A third attack cluster added 207.7294 BTC, lifting estimated losses far above the first $38 million figure.
The flaw weakened seed randomness, leaving wallets vulnerable despite air-gapped storage and offline backups.
Firmware fixes protect new seeds, but users must migrate funds because updates cannot repair older weak seeds.
Losses linked to a Coldcard seed-generation flaw have risen to an estimated 1,367.05 Bitcoin, worth about $88.6 million. Galaxy Research reached the figure after identifying a third suspected theft cluster.
A 3rd wave in what we suspect are hacks of Coldcard-generated addresses has been identified in which 207.7294 BTC has been drained.
Our estimated observed size of the Coldcard hack is now 1,367.05 BTC (~$88.6m) across 4,585 addresses.
More updates in the thread below https://t.co/hPtXh9444D pic.twitter.com/g6xA4OOi2f
— Galaxy Research (@glxyresearch) August 1, 2026
The estimate now covers 4,585 addresses, while attacker-controlled endpoints held 1,366.3865 BTC that remained unspent on-chain. Galaxy classified the activity as suspected hacks, so the total remains an on-chain estimate, not confirmed victim accounting.
Third Attack Cluster Pushes Estimated Losses to $88.6M
The newly identified attack wave involved 207.7294 BTC, extending an investigation that began with a smaller estimate. Early reports placed losses near 594 BTC, then worth $38 million, across about 500 wallets.
Galaxy later reconstructed a larger sweep involving 1,082.65 BTC from 1,196 addresses during a 41-minute window on July 30. Transactions crossed six blocks, indicating that vulnerable keys were likely identified before coordinated batches moved the funds.
The rising totals show why initial cryptocurrency theft figures often change as analysts connect new address clusters. Investigators must distinguish victim wallets, attacker destinations, and intermediate transfers while preventing the same funds from being counted twice.
That process becomes harder when funds remain stationary, as investigators cannot rely on later transfers to clarify ownership patterns. Even so, the unspent balances provide a visible record of the suspected theft’s scale.
The attack did not require physical access, malware, or a stolen recovery phrase. Instead, the weakness began when affected devices generated the secret controlling each wallet.
A 2021 software integration redirected seed creation to MicroPython’s deterministic fallback generator rather than the intended hardware random-number generator. That error sharply reduced the unpredictability protecting newly created wallets.
Older Mk2 and Mk3 units produced an estimated 40 bits of effective search space. Newer Mk4, Q, and Mk5 models reached about 72 bits instead of 128 bits.
Weak Seed Randomness Leaves Existing Wallets Exposed
Block’s engineering and security teams traced the weakness to the same firmware path. Their review found that device identifiers, timer states, and earlier generator calls could narrow candidate outputs.
An attacker could then reproduce possible seed streams offline and compare derived public addresses against visible blockchain records. This method exposed wallets despite air-gapped storage and offline backups.
Coinkite broadened the affected device scope on August 1 and released corrected firmware across every impacted product line. However, installing new software does not strengthen a seed created under defective randomness.
Affected users must create a new seed on fixed firmware, verify the backup and receiving address, and send a small test transaction. They should move the remaining balance only after confirming the test.
Seeds created with at least 50 fair, independent, private dice rolls are not considered exposed by this flaw alone. A strong BIP-39 passphrase adds protection, although migration remains recommended.
TAPSIGNER, OPENDIME, and SATSCARD remain unaffected because they use different codebases. Multisignature setups can reduce similar risks only when enough keys originate from independent, uncompromised sources.
The incident demonstrates that hardware isolation protects secrets after creation, but cannot repair weak randomness at the start. In this case, the wallet’s weakest point appeared before its first transaction.
The post Coldcard Bitcoin Theft Hits $88.6M as Third Attack Wave Emerges appeared first on Blockonomi.

TLDR:
US 30-year Treasury yield surged past 5.20%, its highest level recorded since 2007.
Fed held rates at 3.50%-3.75% despite three dissenting members favoring a rate hike instead.
Credit card serious delinquencies climbed to levels not seen since 2010 amid rising costs.
Bitcoin dipped briefly on the news before recovering, showing contained crypto market reaction.
US Treasury yields climbed to their highest level since 2007 this week, rattling markets well beyond bonds. The move came even though the Federal Reserve left interest rates unchanged at its late July meeting.
Fed Chair Kevin Warsh signaled a shift away from forward guidance, telling investors to trust market signals over central bank commentary.
The 30-year yield pushed past 5.20%, while credit card serious delinquencies reached levels last seen in 2010. Together, these signals point to mounting strain across the US financial system.
Fed Holds Rates While Yields Surge
The Federal Open Market Committee voted 9-3 to hold rates steady at 3.50% to 3.75%. Three regional presidents dissented, favoring a quarter-point hike instead.
This marked the most hawkish split of Warsh’s tenure so far. Markets had priced in roughly a 40% chance of a hike before the meeting.
Financial commentary account The Kobeissi Letter noted the unusual timing of the yield move. Most of the increase came after the Fed’s decision was announced.
The bond market situation is crazy.
While everyone focuses on AI, US borrowing rates just hit the highest level since June 2007.
Credit card "serious delinquencies" are at the highest since 2010 and mortgage rates could near 8%.
What's happening? Let us explain.
(a thread) pic.twitter.com/dddRyRETVR
— The Kobeissi Letter (@KobeissiLetter) August 1, 2026
Analysts called this pattern unusual, since a less restrictive decision typically eases yields rather than raising them. Instead, long-term borrowing costs moved in the opposite direction.
Warsh explained the shift during his press conference, saying the Fed wants markets to “play the ball, not the referee.”
For years, Fed policy leaned heavily on guidance and forward messaging. Warsh’s approach flips that dynamic, leaving markets to interpret data without direct signals.
US inflation remains near 4%, well above the Fed’s 2% target. Record federal deficits and an energy shock tied to the Iran conflict add further pressure.
With few tools left to ease conditions without reigniting inflation, the Fed opted to pause and let markets set the pace themselves.
Mortgage Rates and Credit Stress Rise
Credit card serious delinquencies have climbed to their highest level since 2010. Rising borrowing costs are squeezing household budgets across income levels.
Consumers are increasingly relying on credit to cover everyday expenses. This trend often signals broader stress within the economy.
Mortgage rates are following a similar trajectory, with some estimates nearing 8%. Just eight months ago, consensus expected three rate cuts by year-end. Markets now price in two hikes by January instead, a sharp reversal in sentiment.
The shift has been swift and largely unexpected by most forecasters. Analysts note the Fed’s hands appear tied despite hopes for cuts. Cutting now risks pushing inflation toward 5%, an outcome policymakers want to avoid.
Crypto markets absorbed the news with relatively contained price action. Bitcoin dipped briefly before recovering within the same session.
Ether and XRP traded steadily, though the Fear and Greed Index stayed low. Rising long-end yields now function as tightening the Fed avoided imposing directly.
The post US Treasury Yields Hit 18-Year High as Fed Holds Rates Under Warsh appeared first on Blockonomi.

TLDR:
Stellar XLM’s tokenized real-world assets reached $3.06 billion across 70 products this month.
Stablecoin supply on Stellar XLM expanded 38.3%, while monthly volume hit $6.45 billion total.
RWA transfer volume fell to $386 million despite overall asset growth trend continuing.
Elliott Wave analysis suggests XLM could target $8.36 to $32 in a longer cycle.
Stellar XLM is emerging as a leading blockchain for tokenized real-world assets, according to data shared by wallet platform Scopuly.
The network now hosts $3.06 billion in tokenized real-world assets across 70 products, placing Stellar XLM second only to Ethereum in this category.
The figures come as stablecoin activity on the network continues to expand alongside institutional interest in payment infrastructure.
Stellar XLM Sees Growth In Tokenized Assets And Stablecoin Volume
Scopuly’s data shows tokenized real-world assets on Stellar XLM grew by 5.88% over the past month. This growth places the network in a strong position among blockchains competing for institutional tokenization business.
Stablecoin supply on Stellar XLM rose 38.3% during the same period, according to the platform. That expansion reflects increased issuance activity from stablecoin providers building on the network.
Monthly stablecoin transaction volume on Stellar XLM reached $6.45 billion, Scopuly reported. This figure indicates the network’s payment rails are processing substantial transaction flow already.
Stellar $XLM is quietly becoming one of the biggest RWA blockchains.
Tokenized real-world assets on $XLM have reached $3.06B across 70 products, making Stellar the #2 blockchain for RWAs after Ethereum.
But here's the interesting part:
• RWA assets are growing (+5.88%… pic.twitter.com/0aTWHXpXz3
— Scopuly – Stellar Wallet (@scopuly) August 1, 2026
However, real-world asset transfer volume on Stellar XLM declined to $386 million during the same window. Scopuly noted this drop alongside the broader asset growth trend.
The combination of rising asset totals and falling transfer volume points to a specific pattern. Assets are accumulating on Stellar XLM faster than they are being actively traded or moved.
Scopuly framed this as an early stage in the network’s development cycle. The next phase, according to the platform, involves converting held assets into higher transaction activity.
Institutional infrastructure projects factor into this outlook for Stellar XLM. Scopuly referenced upcoming integration with the Depository Trust and Clearing Corporation as one relevant development.
Tokenized treasuries and stablecoin issuers continue to select Stellar XLM for settlement infrastructure. These factors combine to support the network’s positioning within the broader tokenization sector.
Technical Analysis Points To Alternative Long-Term Scenarios For XLM
Separately, trader CG_trades shared a technical outlook for XLM price movement using Elliott Wave theory. This analysis presents an alternative scenario distinct from the fundamental growth narrative.
It suggests XLM may be tracing a macro cycle inverse ABC pattern across multiple years. Under this reading, wave A completed at the 2017 price peak.
The analysis places XLM currently within wave B, forming an ascending triangle pattern. This structure suggests a period of accumulation before further price movement occurs.
so there’s a alternative scenario for $XLM according to 𝐞𝐥𝐥𝐢𝐨𝐭 𝐰𝐚𝐯𝐞 𝐭𝐡𝐨𝐞𝐫𝐲…
here we go…
so #XLM possibly following a 𝐌𝐀𝐂𝐑𝐎 𝐂𝐘𝐂𝐋𝐄 𝐈𝐍𝐕𝐄𝐑𝐒𝐄 𝐀𝐁𝐂 scenario…
where its 𝐀 𝐖𝐀𝐕𝐄 completed with 2017 top with 5 primary waves up,,,,
and… https://t.co/bzv0A82nkx pic.twitter.com/AhCkh3spty
— CHETAN (@CG_trades_) July 31, 2026
CG_trades projects wave E of this pattern could complete near the 2020 trendline. Estimated price levels for this completion sit between $0.11 and $0.12.
Should XLM reverse following completion of wave E, a longer-term target emerges. The trader’s analysis points to cycle wave C reaching between $8.36 and $32.
This range represents a wide potential outcome under the stated wave count. CG_trades identified a monthly close below the 2020 trendline as invalidation for this scenario.
Both the fundamental data from Scopuly and the technical outlook from CG_trades offer separate views. One centers on network usage metrics tied to real-world assets and stablecoins.
The other relies on historical price pattern recognition across multiple market cycles. Together, they represent two distinct frameworks analysts use to evaluate Stellar XLM.
The post Stellar XLM RWA Assets Hit $3.06B as Stablecoin Supply Surges 38.3% appeared first on Blockonomi.

AlienWP, a digital platform established over a decade ago, is branching out into iGaming journalism by launching a dedicated casino news division. The expansion includes comprehensive coverage of industry developments, operator reviews, regulatory updates, promotional offers, and responsible gaming initiatives as the company makes its debut in the online gambling media landscape.
Platform Expansion Details
The newly introduced division will chronicle significant developments throughout the iGaming sector, delivering coverage on regulatory shifts, licensing announcements, promotional requirements, and player protection initiatives. According to AlienWP, the objective is to deliver unbiased, fact-based reporting about online gaming operators instead of content created solely for promotional purposes.
This venture into iGaming media represents a natural evolution for AlienWP, which has operated as a digital information hub since 2013. The company recognized significant demand among both players and industry professionals for reliable, straightforward casino-related content.
Additional Platform Features
In conjunction with the casino journalism initiative, AlienWP is building Alien Wise Play, a web-based tool designed to enable players to evaluate different online casinos, bookmark preferred platforms, monitor promotional offers, and review licensing credentials. The dashboard functions purely as an information resource and does not operate gaming services, handle transactions, or offer gambling consultation.
Revenue for Alien Wise Play comes through affiliate relationships, though AlienWP characterizes the platform as player-centric rather than a conventional affiliate marketing site. The company emphasizes that transparency and responsible gaming principles are foundational to the platform’s design philosophy.
A distinguishing feature of Alien Wise Play is the Wise Play Score, a proprietary evaluation framework that rates gaming operators across multiple criteria including regulatory compliance, trustworthiness, payment dependability, transparency standards, customer service quality, and player safeguards. AlienWP has indicated that upcoming iterations of this scoring system will integrate compiled player feedback and AI-powered evaluation tools while maintaining editorial autonomy.
Additional details about the platform can be found at Alien Wise Play.
Official Statement
Oliver Dale, representing AlienWP, commented: “Launching our casino news division enables us to provide players with transparent, unbiased coverage and operator evaluations. This initiative complements our work on Alien Wise Play, a platform designed to empower players with comparison tools and resources for making well-informed, safer gaming choices.”
Development Roadmap
The company intends to broaden its casino journalism offerings in upcoming months while simultaneously advancing Alien Wise Play and refining the Wise Play Score methodology. Planned enhancements include incorporating aggregated user feedback and implementing AI-assisted evaluation capabilities, with editorial independence maintained as a core principle.
Company Background
Established in 2013, AlienWP operates as an iGaming journalism platform and casino information resource, delivering coverage on online gaming news, operator evaluations, regulatory matters, promotional offerings, responsible gaming practices, and sector trends. The organization is concurrently developing Alien Wise Play, a player-oriented dashboard that enables users to compare operators, monitor promotions, and access straightforward licensing and security data. Further information is accessible at alienwp.com.
Press Inquiries
Oliver Dale
AlienWP
Website: https://alienwp.com
The post AlienWP Launches Casino News Division Focused on Player Safety and Industry Updates appeared first on Blockonomi.

TLDR:
Republicans aim to pass the CLARITY Act before November 3 midterms to claim a policy win.
Democrats seek stronger ethics rules, AML measures, and conflict-of-interest oversight in the bill.
A split Congress after midterms would likely extend negotiations rather than end the bill.
Bitcoin active addresses near one million show steady network activity despite political uncertainty.
The CLARITY Act remains one of the most closely watched cryptocurrency bills in the United States Congress. Its progress now depends heavily on political timing rather than regulatory debate alone.
With midterm elections scheduled for November 3, lawmakers face mounting pressure to finalize the bill before voters head to the polls.
The legislation aims to define regulatory roles for the SEC and CFTC while strengthening protections for digital asset customers nationwide.
Republicans Push for Passage Before Election Day
Republican lawmakers view the CLARITY Act as a policy win they can present to voters this fall. Passing the bill would let them point to clearer crypto rules as a completed achievement.
Party leaders have emphasized customer asset protection as a central selling point of the legislation. They also argue the bill would improve America’s standing in the global digital asset race.
Time pressure is shaping how Republicans approach negotiations on Capitol Hill. Getting the bill signed before November would give the party a concrete talking point.
That urgency has pushed GOP leaders to move quickly through committee stages. Delays past the midterms could weaken the political value of any eventual passage.
The bill’s core goal is separating oversight duties between the SEC and CFTC. Supporters say this division would reduce confusion for exchanges and token issuers.
Clearer jurisdiction has been a long-standing demand from parts of the crypto industry. Republicans frame this clarity as good for both markets and consumers.
Party strategists are aware that election outcomes could reshape the bill’s future entirely. A loss of either chamber would change who holds negotiating leverage.
That reality has added extra motivation to finish work on the bill now. Every week before Election Day matters for the bill’s political framing.
Democrats Seek Stronger Protections as Markets Watch Closely
Democratic lawmakers are not broadly against cryptocurrency regulation moving forward. Many instead want stronger ethics rules attached to any final legislation.
Enhanced consumer protection measures remain a top priority for several Democratic offices. Some have pushed for tougher anti-money laundering requirements within the bill’s text.
Conflicts of interest involving government officials have also drawn Democratic attention. Lawmakers want clearer rules governing officials with personal crypto holdings.
This concern has become a sticking point in ongoing bipartisan talks. Analysts following the process note this issue remains unresolved on Capitol Hill.
The most likely post-election scenario involves a Democratic House and Republican Senate. That split would likely stretch negotiations rather than end the bill outright.
Crypto policy account noted that a divided Congress “changes the entire negotiating table” for digital asset rules. Compromise language may become necessary to keep the bill alive.
On-chain data offers a separate signal away from political debate. Bitcoin active addresses remain close to one million despite ongoing uncertainty. That level suggests steady network engagement regardless of legislative timing. Investors are watching both political outcomes and blockchain activity together.
The post CLARITY Act’s Fate Hinges on 2026 Midterms as Bitcoin Activity Holds Steady appeared first on Blockonomi.

TLDR:
BNB Chain confirms the Asteroid Shiba token was launched without company authorization or support.
Former employee retained unauthorized seed phrase access after leaving BNB Chain’s team.
BNB Chain pursues legal action and cooperates with authorities over the incident.
Asteroid Shiba market cap hit millions as thousands of holders joined rapidly.
BNB Chain has confirmed it is taking legal action against a former employee accused of unauthorized token issuance. The company said the individual retained access to a wallet’s seed phrase after leaving the organization.
That access was later used to launch a meme token called Asteroid Shiba without company approval or involvement.
Legal Action Follows Unauthorized Wallet Use
BNB Chain explained that the wallet address at the center of the dispute was originally created for internal purposes.
According to the company, “a wallet address was previously created by a former employee, which they then used to generate a token, as part of a video tutorial.” That token was intended solely for demonstration and educational content at the time.
After leaving the company, the individual kept unauthorized access to the wallet’s associated seed phrase. BNB Chain stated, “the individual retained unauthorised access to the associated seed phrase after their departure and used it to generate a new private key.” This continued access went unnoticed by the company until the new token surfaced publicly.
The company confirmed it became aware the same wallet address was being used to launch Asteroid Shiba. BNB Chain said the token was not created, authorized, promoted, or supported by the company in any form. It further clarified that it “has no control over the token or wallet address” involved.
In response to the discovery, BNB Chain announced it is now pursuing formal legal action against the former employee. The company stated it is “pursuing legal action against the former employee and cooperating with relevant authorities on this matter.” No further details about the scope of legal proceedings have been disclosed at this stage.
Background Incident and Market Fallout
BNB Chain referenced a similar situation from 2025 involving a test token known as TST. That token had briefly appeared in a company tutorial video before gaining unexpected trader attention. Its value surged shortly after the appearance, despite carrying no official endorsement from BNB Chain.
The Asteroid Shiba token has followed a similar trajectory since its unauthorized launch. Market capitalization quickly reached millions of dollars as thousands of holders acquired the token.
Speculative trading interest built rapidly, reflecting patterns seen in prior unofficial token episodes tied to established platforms.
BNB Chain also emphasized that the token carries no legitimate ties to the company or its operations. The company noted, “these are not affiliated with or endorsed by BNB Chain,” addressing speculation directly. This distinction has become central to the company’s public messaging since the token’s appearance.
Community reactions have varied considerably following news of the legal action and unauthorized token launch. Some traders view the situation as a speculative opportunity despite its uncertain origins. Others have raised caution, pointing to the deployer’s past history connected to questionable token launches.
BNB Chain’s decision to pursue legal recourse signals a firm stance against unauthorized use of company-linked wallets. The case may also prompt renewed scrutiny of internal access protocols following employee departures.
Traders have been urged to research independently before engaging with tokens lacking verified company backing.
The post BNB Chain Takes Legal Action After Ex-Employee Launches Rogue Meme Token appeared first on Blockonomi.

TLDR:
MARA CEO Fred Thiel says Bitcoin’s payment-method window has closed for good.
Price volatility makes Bitcoin unreliable for high-volume commercial transactions today.
Thiel expects stablecoins to dominate AI-related crypto payments going forward.
Low transaction fees show Bitcoin’s network wasn’t built for payment volume.
Fred Thiel, chief executive of Bitcoin miner MARA, said Bitcoin’s chance to become a widely used payment method has passed. He shared this view during a July 23 interview with Natalie Brunell.
Thiel explained that high-volume commercial transactions require price stability that Bitcoin cannot currently provide.
He expects stablecoins to handle most crypto payments tied to artificial intelligence in the future. Bitcoin, he added, still holds value as a store of wealth outside centralized financial systems.
Why Price Swings Limit Bitcoin’s Use in Commerce
Thiel pointed to the mechanics of commercial transactions as the main obstacle for Bitcoin as currency. Businesses that process thousands of transactions per second need predictable pricing to manage thin profit margins.
Even small shifts in Bitcoin’s price can change the value received during a sale. This makes it difficult for merchants to rely on Bitcoin for daily operations.
“For Bitcoin to function effectively as a payment method, two key elements are crucial: stability in the value of the medium of exchange and the ability to handle a high volume of transactions efficiently,” Thiel said.
Stablecoins, pegged to fiat currencies like the US dollar, avoid this problem entirely. They offer consistent value that businesses can plan around without added risk.
Thiel said this stability is why stablecoins are better suited for high-frequency payment systems. Companies exploring AI-driven commerce are likely to adopt stablecoins for these use cases.
Transaction speed adds another layer to the challenge facing Bitcoin. Commercial environments often require near-instant settlement to keep operations running smoothly.
Bitcoin’s network was not originally built to handle this kind of transaction volume. Newer payment rails built around stablecoins are designed with speed and scale in mind.
Thiel’s comments reflect a broader shift in how the crypto industry views Bitcoin’s role. Rather than positioning it as a currency, many now treat Bitcoin as digital collateral.
Bitcoin’s Security Budget and Its Role as a Store of Value
Bitcoin’s original design assumed transaction fees would eventually fund its security budget. “We’ve seen that transaction fees have remained remarkably low, often at all-time lows,” Thiel noted.
This suggests the network’s incentives are not built around supporting payment volume. Miners currently rely more heavily on block rewards than transaction fees for revenue.
This dynamic reinforces the idea that Bitcoin was not designed for everyday spending. Instead, its strength lies in offering a way to hold assets outside traditional banking systems.
Investors continue to use Bitcoin to move value across borders quickly. It also serves as a hedge against currency devaluation in unstable economies.
Thiel maintains a long-term positive outlook on Bitcoin despite these limitations. “While Bitcoin will undoubtedly continue to exist and serve as a valuable asset for those seeking to hold wealth outside of traditional financial systems, its role as a daily payment method seems unlikely to materialize,” he said. The asset’s usefulness, in his view, has shifted rather than diminished over time.
Institutional interest in Bitcoin as a treasury asset has grown alongside these views. More companies now hold Bitcoin as a hedge rather than a payment tool.
This trend supports Thiel’s argument about Bitcoin’s evolving role in finance. Stablecoins, meanwhile, are positioned to fill the payment gap Bitcoin leaves behind.
The post MARA CEO Fred Thiel: Bitcoin’s Chance to Become a Payment Method Has Passed appeared first on Blockonomi.

TLDR:
ARK Invest Circle shares purchase totaled 109,129 shares worth about $6.83 million across three exchange-traded funds after Circle secured a New York trust charter.
Circle received approval from the New York Department of Financial Services for Circle New York Trust, strengthening its regulated USDC infrastructure.
CRCL stock closed at $62.61 on July 31, falling 2.54% despite the company’s latest regulatory milestone and institutional interest.
Circle plans to gradually move USDC issuance to its New York trust entity while keeping custody services through its federal trust bank.
ARK Invest Circle shares purchases reached 109,129 shares after stablecoin issuer Circle secured a limited-purpose trust charter in New York. The investment firm bought approximately $6.83 million worth of CRCL stock across three exchange-traded funds.
Circle stock closed at $62.61 on July 31, down $1.63, or 2.54%, during the session. The decline came despite Circle receiving regulatory approval from the New York Department of Financial Services (NYDFS).
ARK Invest added the Circle position through its ARK Innovation ETF, ARK Next Generation Internet ETF, and ARK Fintech Innovation ETF. The funds purchased 77,103, 22,238, and 9,788 shares, respectively.
CRCL stock card Circle Internet Group, CRCL
ARK Invest Circle Shares Expand After USDC Approval
ARK Invest Circle shares purchases followed Circle’s approval for Circle Internet Trust Company LLC, also known as Circle New York Trust. The entity received a limited-purpose trust charter from NYDFS.
The approval allows Circle New York Trust to conduct approved virtual currency activities and exercise fiduciary powers under New York banking regulations. It also provides another regulatory structure for Circle’s USDC operations.
Circle said it plans to gradually transfer USDC issuance activities to the New York trust entity. Meanwhile, Circle National Trust will continue handling custody and collateral trustee services under its federal trust framework.
ere is every move that Cathie Wood and Ark Invest made in the stock market today 7/31 pic.twitter.com/B0yFcMgyt9
— Ark Invest Tracker (@ArkkDaily) August 1, 2026
Circle received final authorization from the Office of the Comptroller of the Currency earlier in July. The federal approval allowed Circle to establish a national trust bank focused initially on digital asset custody services.
The combination of state and federal approvals gives Circle separate regulatory pathways. NYDFS will oversee the New York trust company, while the OCC will supervise Circle National Trust.
Circle CEO Jeremy Allaire said the New York charter represented a long-term objective for the company. He highlighted the role of regulatory clarity as digital dollars expand across financial markets.
ARK Invest Circle Shares Face Market Pressure
ARK Invest Circle shares’ additions arrived as the firm increased exposure to digital asset-related companies. On July 31, ARK also purchased 11,784 shares of the 3iQ Solana Staking ETF.
The firm made several other purchases during the session, including 298,243 CoreWeave shares, 7,500 Pony AI shares, and 2,700 Kodiak AI shares. ARK reduced holdings in several technology companies, including Shopify and Cloudflare.
Circle stock has struggled after its earlier rally following the OCC approval. CRCL gained around 10% on July 10 after the federal trust bank announcement but later gave up part of those gains.
The latest ARK Invest Circle shares purchase shows continued institutional exposure to companies building regulated crypto infrastructure. However, the stock remains influenced by broader technology market conditions and investor expectations around stablecoin growth.
Circle is scheduled to release its second-quarter 2026 financial results on August 5. Investors will watch USDC activity, revenue performance, and the impact of the company’s expanding regulatory framework.
The post ARK Invest Circle Shares Rise as Firm Adds $6.8M Position appeared first on Blockonomi.

TLDR:
Tether’s excess reserves fell 50% to $4.11 billion after a record $8.23 billion in Q1 2026.
Net operating profit hit $1.50 billion, driven mainly by U.S. Treasury and repo income sources.
USD₮ issuance rose to $184.6 billion, pushing Tether’s stablecoin market share past 60% overall.
Tether cut secured lending by $2.38 billion and expanded gold holdings to over 146 tons total.
Tether reported a $1.50 billion net operating profit for the second quarter of 2026, according to its latest attestation prepared by BDO.
The stablecoin issuer’s excess reserves fell to $4.11 billion by June 30, down from $8.23 billion at the end of the first quarter.
Total USD₮ issuance climbed to approximately $184.6 billion during the quarter. The company also expanded its gold holdings past 146 tons while reducing secured lending exposure.
Reserve Buffer Narrows Amid Market Volatility
Tether’s excess reserves declined by nearly 50% during the second quarter. The drop followed sharp price swings across gold and Bitcoin markets. Despite the decline, reserves still exceeded liabilities by billions of dollars.
Financial disclosures show a first-half comprehensive result near negative $3.17 billion. Combined with the first quarter’s $1.04 billion net profit, the full picture suggests a Q2 loss exceeding $4 billion once unrealized gains and losses are counted. Tether did not detail every factor behind the shift.
Total assets stood at $187.75 billion against liabilities of $183.64 billion. Digital tokens issued accounted for nearly all reported liabilities, at roughly $183.62 billion. The gap between assets and liabilities left reserves at $4.11 billion.
Tether reduced its secured lending exposure by $2.38 billion, a cut of about 15%. CEO Paolo Ardoino said, “We remained one of the world’s largest buyers of U.S. Treasuries, reduced secured lending by $2.38 billion, and added 14 tons of physical gold.” Reserves stayed concentrated in short-duration, high-quality liquid assets such as Treasuries
Tether just released its quarterly USDT attestation for Q2 2026.
Tether had a great second quarter of 2026, with ~1.5B in net operating profit, despite highly volatile global markets.
USDT user base continued to grow, reaching the new all-time-high of 650M+, with the widest… https://t.co/L4AIzCLcUI pic.twitter.com/x4qxgacCRi
— Paolo Ardoino (@paoloardoino) July 31, 2026
Treasury Holdings and Global Growth Support Operations
Net operating profit reached $1.50 billion, driven mainly by U.S. Treasury and repo returns. Tether remained among the largest holders of U.S. government debt. Short-term liquidity facilities also added to the quarter’s overall returns.
Ardoino said, “Q2 demonstrated the strength of Tether’s reserve strategy under real market pressure.” He added that the assets backing some of Tether’s reserves were tested directly during the quarter. Ardoino noted that USD₮ remained fully backed throughout, with reserves still exceeding liabilities by $4.11 billion.
USD₮ issuance rose to $184.6 billion, an increase of roughly $446 million from the prior quarter. USD₮’s share of the total stablecoin market grew past 60%. “Our global user base continued to grow by more than 30 million users,” Ardoino said, pointing to steady platform adoption.
Gold holdings expanded to more than 146 tons after 14 tons were added during the quarter. Ardoino said the results show Tether has “the liquidity, discipline, and scale to remain resilient across market cycles.” The Big Four audit process continued alongside the report’s release.
The post Tether Posts $1.5B Q2 Profit as Excess Reserves Halve to $4.11 Billion appeared first on Blockonomi.

TLDR:
George Santos will pay $35,069.98 under a CFTC settlement covering $17,569.98 in disgorged profits and a $17,500 civil penalty.
The order bars Santos from prediction market trading for three years after trades tied to his State of the Union attendance.
The CFTC says social posts and omitted travel updates moved contract prices favorably while Santos changed positions on Kalshi.
Kalshi says it flagged the activity, referred evidence to regulators, and plans separate enforcement with possible trader reimbursement.
George Santos has agreed to pay more than $35,000 to settle Commodity Futures Trading Commission allegations involving Kalshi trades. The CFTC settlement covers $17,569.98 in trading profits and a separate $17,500 civil penalty. It also bars the former congressman from prediction market trading for three years.
Regulators say Santos traded contracts tied to his attendance at President Donald Trump’s February State of the Union address. They allege his social media posts omitted key travel changes while market prices moved in his favor. Santos settled without admitting or denying the agency’s findings, according to his lawyer. Kalshi reported the activity itself.
George Santos Settlement Details and Trading Sequence
The agency says George Santos first bought positions predicting that he would attend the address. He then posted about clothing choices for the event. The contract price rose, allowing him to close the position at a profit.
For the reporters here are the only comments you’ll get on this matter. pic.twitter.com/fn5TGNUBKr
— George Santos (@Georgesantos) July 31, 2026
Travel problems later changed the situation. A winter storm disrupted his flight to Washington, and Santos discussed the delay online. His lawyer says he had booked a flight and hotel and planned to attend.
According to the CFTC, Santos then shifted toward contracts predicting that he would not attend. He also canceled a train reservation. However, the agency says he did not disclose that cancellation while continuing to post about his travel prospects.
Minutes into the speech, Santos announced that he was stranded at the airport and would miss the event. The market moved sharply after that post. Regulators say the later position generated nearly $14,400, while the trading sequence produced $17,569.98.
The settlement requires George Santos to surrender those profits. He must also pay the $17,500 civil monetary penalty. Together, the two amounts bring the payment to $35,069.98.
Attorney Joseph Murray said the agreement offers a practical resolution to avoid lengthy litigation. He stressed that Santos admitted no wrongdoing. Murray also denied any intent to deceive traders or manipulate prices.
The lawyer said the State of the Union contract marked Santos’s first prediction market wager. He maintained that changing weather, not a trading plan, forced the attendance reversal. The CFTC order nevertheless treats the social posts, omissions, and trades as connected conduct.
Kalshi Referral Expands CFTC Prediction Market Scrutiny
Kalshi said its surveillance systems flagged the George Santos activity and referred the matter to regulators. Robert DeNault, the exchange’s enforcement chief, said the company supplied evidence supporting the CFTC action. The platform now plans separate enforcement under its own rules.
Kalshi said it would seek to reimburse affected market traders if its process recovers monetary penalties. That step remains separate from the CFTC settlement. The federal order directs the forfeited profits and penalty through the regulator’s enforcement process.
The case arrives as prediction markets face scrutiny over traders who can influence contract outcomes. Political figures may know private schedule changes before other participants. Their public statements can also move prices when contracts concern their actions.
The CFTC has pursued other event-contract cases during 2026. In May, the agency charged a Google employee over alleged insider trading linked to Year in Search results. That complaint sought disgorgement, penalties, and trading bans.
Meanwhile, the regulator continues defending federal authority over event contracts against state challenges. Those disputes concern whether some contracts resemble gambling. The George Santos matter instead centers on market conduct on Kalshi.
Santos’s lawyer said the CFTC settlement should not count as an admission. The order still imposes a three-year trading ban. It creates an enforcement record tied to statements made during an active contract.
George Santos represented Queens and Long Island before the House expelled him in 2023. He later pleaded guilty to wire fraud and aggravated identity theft. President Trump commuted his prison sentence in October 2025.
The post CFTC Orders George Santos to Pay Over $35,000 for Kalshi Trades appeared first on Blockonomi.

TLDR
IBM shares rise as UniCredit launches a major European banking tech overhaul.
Accenture will acquire IBM’s majority stake in UniCredit’s infrastructure venture.
IBM will supply mainframe, software and consulting for core banking upgrades.
The partnership aims to expand cloud, data and AI capabilities across Europe.
Regulatory approvals remain required before the transaction can be completed.
IBM (IBM) shares rose 0.86% to $223.65 at Friday’s close before slipping 0.39% to $222.78 after hours. The move followed a major technology agreement involving UniCredit, Accenture, and IBM across thirteen European markets. The partnership targets banking modernization, wider artificial intelligence use, and UniCredit’s long-term European growth.
International Business Machines Corporation, IBM
UniCredit Builds New Banking Technology Model
UniCredit plans to create a new technology operating model with support from Accenture and IBM. The bank wants greater control over system development while maintaining resilience across essential banking operations. The structure will also improve flexibility as UniCredit updates digital services across its European network.
Accenture will acquire IBM’s majority stake in the joint venture managing much of UniCredit’s technology infrastructure. That change will give Accenture a larger operating role within the bank’s multi-year transformation programme. Meanwhile, IBM will continue supplying key platforms, software, infrastructure, and consulting services.
The agreement supports UniCredit’s wider plan to improve efficiency and strengthen service delivery. It also creates a shared framework that the bank can apply across several European markets. Consequently, UniCredit expects faster technology deployment and more consistent operations throughout the group.
IBM Expands Core Banking Technology Role
IBM will provide UniCredit with modernized IBM Z platforms and related software for mission-critical workloads. The company will also deliver consulting services supporting hybrid cloud systems and operational changes. These services will help UniCredit maintain reliability while modernizing its core banking environment.
The collaboration strengthens IBM’s position among major financial institutions requiring secure and dependable infrastructure. Banks commonly use mainframe systems for payments, customer records, and high-volume transaction processing. IBM’s technology remains central to UniCredit’s planned move toward a more flexible architecture.
IBM will also help UniCredit connect existing systems with newer digital platforms. This approach can limit disruption while allowing the bank to update services gradually. It also provides a stronger foundation for data management, automation, and artificial intelligence applications.
Accenture Takes Larger Transformation Role
Accenture will manage more infrastructure operations after completing the proposed stake acquisition. The company will combine its European operations, cloud expertise, and technology delivery capabilities. As a result, UniCredit can coordinate major system upgrades through a broader regional structure.
The expanded role will cover cloud adoption, data management, and artificial intelligence across UniCredit’s businesses. Accenture will also help the bank standardize processes and expand new digital tools. These changes could improve service speed and reduce technology complexity across multiple countries.
The transaction still requires regulatory approval and other customary closing conditions. UniCredit must also complete relevant employee information and consultation procedures across affected markets. The partnership will then launch a multi-year programme covering infrastructure, operations, and digital banking development.

The post IBM (IBM) Stock: Edges Higher as UniCredit Partnership Targets AI Banking Growth appeared first on Blockonomi.

TLDR
Chime shares gained 1.73% as the fintech announced a 10% workforce reduction.
About 150 employees will lose their roles as Chime shifts toward smaller teams.
The company plans flatter management and wider AI use to improve efficiency.
Chime will report second-quarter results on August 5 after its restructuring.
Financial firms are cutting jobs as automation reshapes their operating models.
Chime Financial shares gained 1.73% to $22.99 Friday as the fintech announced a major workforce restructuring. The stock then slipped 0.04% to $22.98 after hours, keeping most of the session’s advance. Chime will cut about 150 jobs while expanding automation and reducing management layers.
Chime Financial, Inc. Class A Common Stock, CHYM
Chime Cuts 150 Roles Under New Operating Structure
The reduction represents roughly 10% of Chime’s workforce and affects teams across several operating areas. Chime employed about 1,500 people at the end of 2025, according to its annual filing. Management linked the changes to faster technology adoption and stronger productivity across smaller teams.
Chief Executive Chris Britt said new tools now allow fewer employees to complete more work. As a result, Chime plans to simplify reporting lines and shift resources toward priority growth areas. The company also expects new skill requirements as technology changes daily operations.
Chime will add selected capabilities despite the broader job reductions. Meanwhile, the company plans to increase office attendance to support faster collaboration and decisions. These measures form part of a wider effort to improve execution after its public listing.
Flatter Teams Target Faster Growth and Lower Costs
Chime completed its initial public offering in June 2025 and now faces higher public market expectations. At the same time, management wants faster growth alongside tighter spending and stronger operating discipline. The restructuring aims to create a leaner organization without slowing product development.
Chime operates as a financial technology company rather than a chartered bank. It provides banking and payment services through partners including The Bancorp Bank and Stride Bank. This model lets Chime offer digital accounts, lower fees, and simplified mobile services.
The company reported 10.2 million active members during the first quarter of 2026. That figure increased 19% from the previous year and showed continued customer growth. However, Chime must convert member expansion into durable revenue and improved profitability.
Chime Financial Stock Gains Before Quarterly Results
Chime will report second-quarter results on August 5, giving shareholders a clearer view of current performance. The update should show whether growth remained strong before the restructuring announcement. It may also clarify how management expects the job cuts to affect future costs.
The move follows similar reductions across payments, banking, and cryptocurrency companies. Visa recently announced plans to remove about 2,600 roles, equal to roughly 7% of its workforce. Block also disclosed a much larger workforce reduction while redesigning operations around automation.
Mastercard, Robinhood, and Coinbase have also reduced staffing during 2026. These actions reflect a broader shift toward smaller teams and more automated internal processes. Financial companies increasingly seek higher output while controlling expenses in a competitive digital market.

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TLDR
Profusa stock drops after hours as the G3 acquisition faces key conditions.
The G3 deal requires at least $30 million in secured financing before completion.
G3’s unaudited 2025 revenue estimate of $111 million supports the deal value.
Shareholder approval is needed to convert preferred stock into common shares.
Profusa must retain its Nasdaq listing and resolve G3 debt before the closing.
Profusa shares closed unchanged at $1.06 in regular trading before dropping 3.77% to $1.02 during after-hours trading. The decline followed a formal option agreement covering Profusa’s proposed acquisition of G3 Vision Labs and three subsidiaries. The transaction now depends on financing, debt restructuring, shareholder approval, and continued Nasdaq listing compliance for the proposed transaction.
Profusa, Inc. Common Stock, PFSA
Profusa Sets Terms for G3 Acquisition
Profusa secured the right to acquire G3 Vision Labs, Med Screen Laboratories, Dominion Diagnostics, and Acutis Diagnostics under the agreement. The option remains open until G3 provides required financial records, followed by an additional 90-day exercise period under agreed terms. G3 estimated 2025 net revenue at about $111 million using unaudited management information for the diagnostics group and subsidiaries.
The proposed combination would create a public diagnostics company operating national laboratories certified under federal CLIA standards across several markets. These laboratories serve addiction treatment, pain management, behavioral health, and other provider networks across regional markets and related clinical services. Profusa expects the business to generate recurring revenue through a broad base of healthcare providers and nationwide diagnostic testing services.
Profusa must complete several conditions before it can exercise the acquisition option under the signed agreement and related documents. The company must raise at least $30 million through completed financings or binding funding commitments for Profusa or G3 combined. G3 must also refinance, repay, settle, or secure lender consent covering specified outstanding debt obligations before Profusa completes the transaction.
Financing and Approvals Control the Deal
Profusa must keep its preferred stock designation effective and secure shareholder approval under Nasdaq listing rules before exercising the option. Shareholders must approve preferred share conversions and related transaction terms during a properly convened company meeting before any conversion occurs. Profusa must also preserve its Nasdaq listing and avoid suspension, removal, threatened delisting, or related proceedings before closing.
Profusa paid G3 stockholders 201,120 common shares and 52,903.566 newly designated non-voting convertible preferred shares as option consideration. Each preferred share converts into 1,000 common shares after Profusa receives the required shareholder approval under the agreed structure. G3 stockholders will receive another 53,918.113 preferred shares if Profusa exercises the acquisition option at the planned transaction closing.
G3 stockholders will retain the initial consideration if Profusa leaves the option unexercised, and the transaction will not change control. Tungsten Advisors advised Profusa, while Katten Muchin Rosenman and K&L Gates provided legal counsel to the two companies. Profusa expects to file further terms in Form 8-K, while the issued securities remain unregistered under federal and state laws.

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