Blockonomi

TLDR:

Binance will convert its entire $1 billion SAFU fund from stablecoins to Bitcoin reserves within 30 days of announcement.

The exchange prevented approximately $6.69 billion in scam-related losses for 5.4 million users throughout 2025.

Binance’s proof-of-reserves showed $162.8 billion in fully backed user assets across 45 cryptocurrencies by year-end.

The platform will rebalance the SAFU fund to $1 billion whenever Bitcoin volatility drops it below $800 million.

 

Binance has announced plans to convert its entire $1 billion SAFU fund from stablecoins to Bitcoin within 30 days. The exchange positions this move as a long-term commitment to the crypto industry while addressing ongoing market pressures. This decision reflects Binance’s belief in Bitcoin as the core asset of the digital currency ecosystem amid heightened scrutiny of industry practices.

Risk Management and User Protection Initiatives

Binance reported substantial progress in safeguarding user assets throughout 2025 despite challenging market conditions. The exchange successfully assisted users in recovering $48 million across 38,648 cases of incorrect deposits during the year. These efforts contributed to a cumulative recovery total exceeding $1.09 billion since the program’s inception.

The platform’s risk control systems identified potential threats for 5.4 million users in 2025. These preventive measures helped avoid approximately $6.69 billion in scam-related losses. The exchange emphasized its collaboration with global law enforcement agencies to combat illegal activities within the crypto space.

Through these partnerships, authorities confiscated $131 million in illicit funds during the year. Binance framed these initiatives as necessary steps toward industry maturation and increased accountability. The exchange acknowledged that market volatility creates pressure across the sector, requiring enhanced governance and risk management protocols.

The platform’s proof-of-reserves mechanism showed user assets totaling approximately $162.8 billion by year-end. These holdings received full backing across 45 different crypto assets, demonstrating the exchange’s commitment to transparency.

Strategic Bitcoin Allocation and Ecosystem Development

The conversion of SAFU fund reserves represents a strategic shift in Binance’s asset management approach. The exchange will implement regular rebalancing procedures based on the fund’s market value monitoring. Should Bitcoin price fluctuations push the fund below $800 million, Binance commits to restoring it to $1 billion.

This rebalancing mechanism aims to maintain adequate protection levels while capitalizing on Bitcoin’s long-term value proposition. The exchange characterized this initiative as part of its broader industry-building efforts. Binance operates under principles of openness and transparency as it navigates evolving regulatory landscapes.

The platform’s 2025 spot listing program demonstrated ecosystem diversity by covering 21 public blockchains. Ethereum, BSC, and Solana dominated with 32, 18, and 9 projects respectively. Among these supported networks, 13 represented newly launched blockchains spanning payment, gaming, and social applications.

This distribution strategy reflects Binance’s approach to fostering innovation across multiple sectors. The exchange acknowledged rising expectations around governance and responsibility as the crypto ecosystem expands. Market concerns continue to shape industry development, prompting exchanges to demonstrate tangible commitments beyond operational statements.

The post Binance to Convert $1 Billion SAFU Fund to Bitcoin Amid Market Volatility appeared first on Blockonomi.

TLDR:

Helix processed 354,468 bitcoin worth approximately $300 million between 2014 and 2017 operations. 

Larry Harmon pleaded guilty in August 2021 and received 36 months in prison plus asset forfeiture. 

The mixing service integrated directly with darknet markets through an API for bitcoin withdrawals. 

Federal authorities traced tens of millions from darknet drug markets through the Helix platform.

 

The U.S. Department of Justice announced it obtained legal title to over $400 million in assets connected to the Helix darknet mixing service last week.

Operator Larry Dean Harmon received a 36-month prison sentence in November 2024 after pleading guilty to money laundering conspiracy.

The forfeiture includes cryptocurrencies, real estate, and monetary holdings seized from Harmon’s operation.

Helix Processed $300 Million in Darknet Transactions

Helix operated as one of the most prominent cryptocurrency mixing services on the darknet between 2014 and 2017.

The platform blended digital currencies from multiple users through various transactions. This process obscured the original sources, final destinations, and actual owners of the funds.

Court documents reveal that Helix processed approximately 354,468 bitcoin during its operation. The total value equaled roughly $300 million in U.S. dollars at the time of those transactions. Much of this cryptocurrency originated from or was destined for darknet drug markets.

Harmon collected a percentage of each transaction as commission for operating the service. Online drug dealers particularly sought out Helix to launder their illegal proceeds.

The platform’s popularity stemmed from its integration capabilities with major darknet marketplaces.

Judge Beryl A. Howell of the District Court for the District of Columbia issued the final forfeiture order on January 21. Harmon had pleaded guilty in August 2021 and faced additional penalties including three years of supervised release. The court also imposed a forfeiture money judgment alongside the seized property confiscation.

Integration with Darknet Markets Through Advanced Technology

Harmon designed Helix alongside a darknet search engine called Grams to support all major darknet markets. The service featured an Application Program Interface that enabled direct integration with marketplace withdrawal systems. This API allowed darknet platforms to embed Helix functionality seamlessly into their bitcoin operations.

Investigators successfully traced tens of millions of dollars flowing between darknet markets and Helix. The IRS Criminal Investigation Cyber Crimes Unit and FBI Washington Field Office led the investigation.

International cooperation proved essential, with the Attorney General’s Ministry of Belize and Belize Police Department providing critical assistance.

The Justice Department’s Office of International Affairs coordinated efforts through U.S. Embassy Belmopan. The U.S. Attorney’s Office for the Northern District of Ohio also contributed to the case. Multiple agencies worked together to dismantle the operation and secure the substantial asset forfeiture.

The Computer Crime and Intellectual Property Section has convicted over 180 cybercriminals since 2020. Courts have ordered the return of more than $350 million in victim funds through their prosecutions.

This case represents another milestone in federal efforts to combat cryptocurrency-based money laundering operations.

The post DOJ Seizes $400M in Assets from Helix Darknet Cryptocurrency Mixer appeared first on Blockonomi.

TLDR:

Silver surged 450% to $120 adding $6 trillion in market cap amid five-year supply deficit of 678 million ounces. 

China export restrictions tightened global supply with Shanghai silver at $127 creating record premiums over markets. 

Paper-to-physical leverage at 350:1 triggered forced buying as delivery requests exposed severe physical shortages. 

Lease rates spiked to 39% while backwardation emerged signaling worst physical stress since 1980 silver crisis.

 

Silver prices have exploded to $120 per ounce, representing a 450% surge over two years. This historic rally added over $6 trillion to silver’s total market capitalization.

The metal now stands as the world’s best-performing asset across all categories. Multiple structural factors converged simultaneously to create this unprecedented price movement. Supply deficits, export restrictions, and paper market failures combined to fuel the explosion.

Unprecedented Supply Crisis Drives Historic Price Action

The current silver explosion stems from years of accumulated deficits rather than temporary imbalances. Bull Theory explained that global consumption exceeded production for five consecutive years before prices began accelerating.

According to the analysis, total shortages reached 678 million ounces during this period. This deficit represents almost one complete year of worldwide mine output missing from available supply.

WHY SILVER IS EXPLODING LIKE NEVER SEEN BEFORE IN HISTORY ?

Silver just hit $120, up 450% in the last 2 years, adding over $6 trillion to its market cap and became the BEST performing assets in the world.

The main reason for this INSANE rally is supply chain + paper market… pic.twitter.com/QO8g420uHa

— Bull Theory (@BullTheoryio) January 29, 2026

China’s export restrictions intensified the supply crisis to historic levels. The country controls major portions of global refined silver through processing operations.

New licensing requirements drastically reduced the amount of metal permitted to leave Chinese borders. Physical silver inside China became increasingly scarce as Shanghai prices climbed to $127. Bull Theory noted that this premium over international markets demonstrates the severity of internal shortages.

Industrial demand growth reached levels never previously witnessed in silver markets. Solar panel manufacturing now consumes massive quantities for electrical conductivity requirements.

The report indicates annual solar demand expanding from 200 million ounces to 450 million ounces by 2030. Data center construction, artificial intelligence infrastructure, and grid electrification created additional pressure. These sectors cannot easily substitute silver due to its superior conductive properties.

The paper market’s leverage ratio exposed systemic vulnerabilities at unprecedented scales. Current estimates place paper-to-physical ratios at 350:1 across trading platforms.

Bull Theory highlighted that for every single physical ounce, there are 350 ounces in paper claims. Increased physical delivery demands triggered forced buying as shorts scrambled for metal. This created a self-reinforcing loop pushing prices higher at accelerating rates.

Market Dislocation Reaches Historic Extremes

Lease rates spiked to 39% annualized, indicating the most severe borrowing stress in decades. Normal market conditions maintain rates near zero for precious metals lending.

The explosion to 39% revealed extreme difficulty accessing physical inventory for delivery obligations. Borrowing costs at these levels appeared only during previous historic crises.

Backwardation emerged across silver futures as spot prices exceeded forward contracts. This inversion signals desperate demand for immediate physical delivery over future promises.

Bull Theory observed that market participants last witnessed similar backwardation patterns around 1980 during that era’s silver crisis. The reappearance confirmed structural breakdown in normal supply relationships.

Refining capacity losses compounded the supply explosion by removing 9.7% of global processing ability. Even available raw silver could not transform into deliverable bars quickly enough.

Exchange-traded funds simultaneously absorbed 95 million ounces in early 2025 alone. This removal from circulation eliminated metal that industries and contract holders desperately needed.

Strategic classification by the United States formalized silver’s critical status in August 2025. Government recognition of supply vulnerabilities marked a historic shift from commodity to strategic resource.

Combined with multi-year deficits, Chinese export controls, industrial demand surges, paper leverage collapse, extreme lease rates, backwardation, refinery shutdowns, and ETF absorption, physical scarcity replaced paper pricing.

Bull Theory concluded that the explosion occurred because every major factor aligned simultaneously for the first time in history.

The post Silver Hits $120: Why the Metal Is Exploding Like Never Seen Before in History appeared first on Blockonomi.

TLDR:

Arc testnet processed 150 million transactions in 90 days with 0.5-second average settlement times. 

USDC circulation grew 108% year-over-year, maintaining position as largest regulated dollar stablecoin. 

Circle Cross-Chain Transfer Protocol processed $126 billion volume across 19 connected blockchains. 

Circle Payments Network reached billions in annualized volume since May 2025 launch with major banks.

 

Circle has outlined its comprehensive product strategy for 2026, focusing on three interconnected pillars that aim to establish a complete internet financial infrastructure.

The company’s Chief Product and Technology Officer detailed plans encompassing blockchain infrastructure through Arc, digital assets including USDC, and applications like Circle Payments Network.

This strategy represents Circle’s effort to connect open infrastructure with liquidity and applications to support economic coordination natively online.

Arc Blockchain and Developer Tools Drive Infrastructure Layer

Circle’s Arc blockchain serves as the foundation for its internet financial platform vision. The Layer-1 blockchain launched its public testnet on October 28, 2025, processing over 150 million transactions in its first 90 days.

Nearly 1.5 million transacting wallets participated during this period, with transactions settling in approximately 0.5 seconds on average.

Circle described Arc as designed to provide businesses and financial institutions with a trusted foundation for internet-native economic coordination.

The network features stablecoin-based transaction fees and deterministic sub-second finality for every transaction. Privacy features support institutional requirements around governance and compliance.

Developer infrastructure plays a crucial role in Circle’s platform strategy. Circle Cross-Chain Transfer Protocol (CCTP) has processed $126 billion in cumulative volume as of December 2025. The protocol connects 19 of the 30 blockchains where USDC is natively available.

Circle Gateway provides unified USDC balances that are chain-abstracted, enabling instant access to crosschain liquidity.

The company introduced Build with AI at the end of 2025, helping developers generate code through a chatbot. App Kits will unify fragmented ecosystems into a single SDK experience for faster application development.

Digital Assets and Payment Applications Complete Platform Stack

USDC experienced 108% year-over-year circulation growth, establishing itself as the world’s largest regulated dollar stablecoin.

Circle noted the stablecoin sees growing usage across exchanges, fintechs, DeFi applications, payment providers, and enterprises worldwide. The company emphasized expanding to chains that matter most to builders through a regulatory-first approach.

Circle’s tokenized money market fund, USYC, reached $1.6 billion in assets under management as of January 27, 2026.

The yield-bearing asset offers 24/7 near-instant redemptions at scale across major ecosystems including Solana and BNB Chain. Circle aims to integrate USYC into onchain treasury, collateral, and capital markets workflows during 2026.

xReserve allows blockchain teams to launch USDC-backed stablecoins through onchain reserve contracts. This service extends Circle’s asset layer beyond company-issued stablecoins.

Partners can rely on an attestation service to launch stablecoins that interoperate with USDC across supported chains.

Circle Payments Network (CPN) launched in May 2025, combining traditional fiat payment rails with stablecoin programmability. The network has enrolled major financial institutions and reached billions in annualized transaction volume.

CPN enables near-instant money movement across fiat and crypto payouts, intercompany transfers, and merchant acceptance.

StableFX operates on the Arc Testnet, allowing vetted institutions to trade stablecoin foreign exchange pairs with instant onchain settlement.

Circle stated the platform brings seamless value conversion across currencies onchain as stablecoin-powered payments continue to expand.

The company plans to deepen StableFX coverage through partnerships in the Circle Partner Stablecoins program during 2026.

The post Circle’s 2026 Strategy: Building Internet Financial Platform Through Arc and Stablecoins appeared first on Blockonomi.

TLDR:

Progmat Coin consortium unites 200+ Japanese banks for ¥1 trillion three-year stablecoin issuance plan.

Project Pax integrates Swift API with IBC protocol to preserve banking workflows while modernizing settlement.

Cosmos architecture enables ledger-level compliance controls and permissioned issuance for regulated assets.

IBC interoperability protocol maintains zero security exploits since 2021 launch across 200+ blockchains.

 

Tokenized deposits and stablecoins continue to reshape institutional settlement systems as major financial players adopt blockchain infrastructure.

Japan’s banking consortium, backed by over 200 institutions, plans to issue approximately ¥1 trillion in stablecoins over three years using Cosmos technology.

The initiative demonstrates how traditional finance integrates programmable money while maintaining regulatory compliance and operational control.

Banking Consortium Leverages Cosmos for Cross-Border Settlement

Progmat Coin represents a significant development in institutional blockchain adoption. The platform, co-developed by Datachain, brings together Japan’s largest banks and financial institutions. The consortium selected Cosmos infrastructure to address persistent inefficiencies in cross-border payments.

Project Pax, launched by Progmat and Datachain, uses the Inter-Blockchain Communication Protocol as its core interoperability layer.

The architecture preserves existing banking workflows while modernizing settlement infrastructure. Banks initiate payments through Swift’s API, maintaining familiar compliance controls throughout the process.

The settlement layer operates across both public and private blockchains. Progmat issues regulated stablecoins that move via IBC connections. Datachain’s multi-prover security model meets Japanese regulatory requirements while enabling cross-chain transfers.

This design targets the G20’s identified weaknesses in cross-border payments. The system eliminates correspondent banking chains and enables real-time settlement.

It decouples payment reach from correspondent relationships and provides immutable records for regulatory reporting.

Compliance Controls and Network Connectivity Drive Institutional Adoption

Cosmos-based chains allow institutions to embed compliance logic at the ledger level. Issuers configure permissioned issuance, whitelisted participants, and transaction limits directly into chain architecture. This approach shifts enforcement closer to the point of issuance rather than relying on external controls.

The technology stack powers over 200 independent blockchains. The interoperability protocol has remained free of security exploits since launching in 2021.

This track record addresses threshold concerns about whether underlying technology can operate at scale.

Institutions retain control over validator selection and governance processes. Compliance logic, redemption workflows, and access controls embed at the ledger level.

Issuers can restrict IBC connections to approved counterparty chains that implement compatible compliance standards.

Cosmos supports EVM compatibility through its framework, enabling interaction with existing treasury and payment applications.

Institutions can restrict connectivity to approved networks while maintaining access to broader liquidity ecosystems.

This connectivity allows tokenized deposits to operate within purpose-built chains without sacrificing interoperability.

The Progmat initiative illustrates how regulated stablecoin infrastructure can scale while preserving predictability. Financial institutions require control, compliance, and integration with existing banking systems.

Tokenized deposits extend bank money into programmable environments without replacing central bank-issued currencies or disrupting core banking operations.

The post Japan’s $6.5B Stablecoin Push: How Cosmos Powers 200 Banks in Tokenized Deposit Revolution appeared first on Blockonomi.

TLDR:

Bitcoin’s 5% correction outperformed gold’s 8% and silver’s 12% drops during the Microsoft-triggered sell-off.

Hyperliquid recorded $87.1M in liquidations, nearly three times Binance’s $30M despite lower trading volumes.

Binance open interest reached 123,500 BTC, surpassing pre-October levels and marking 31% growth since the crash.

Leveraged trading appetite persists as traders rebuild positions despite $300M in liquidations within hours.

 

Bitcoin weathered a 5% decline during a broader market correction that saw gold drop 8% and silver plummet 12%.

The cryptocurrency demonstrated relative stability compared to traditional assets as Microsoft’s AI investment announcements sparked a global sell-off.

Equity markets suffered substantial losses, with the tech giant’s shares falling over 12% and creating ripple effects across major indices including the S&P 500 and Nasdaq.

Liquidation Cascade Reveals Persistent Leverage Appetite

The modest Bitcoin correction proved sufficient to eliminate nearly $300 million in leveraged long positions within hours.

Hyperliquid dominated the liquidation landscape with $87.1 million in wiped-out positions. Binance recorded approximately $30 million in liquidations despite maintaining some of the highest trading volumes globally. The disparity between platforms underscores varying leverage practices across different exchanges.

Market participants continue pursuing exposure through high-leverage positions, generating sudden volatility spikes. These movements often amplify through liquidation cascades that compound initial price pressures.

The pattern persists despite the October 10 event that previously destroyed substantial liquidity and capital. Traders appear undeterred by past liquidation episodes.

Risk appetite remains elevated among cryptocurrency investors seeking amplified returns. According to @Darkfost_Coc on X, the recent turbulence emerged within a context where traditional safe havens also faced pressure.

The synchronized decline across asset classes marked an unusual period of correlation between crypto and conventional markets.

Global Sell Off : -8% Gold, -12% Silver, -5% BTC, while Binance Open Interest back up to Pre-October 10 Levels

In a context where gold recorded a sudden correction of around 8% and silver roughly 12%, Bitcoin experienced a more moderate pullback of about 5%

This move… pic.twitter.com/OUied1BkNU

— Darkfost (@Darkfost_Coc) January 29, 2026

The speed of liquidations highlights the fragility embedded in overleveraged positions during volatile periods. Even moderate price movements can trigger significant forced selling when leverage ratios reach extremes.

Market infrastructure must absorb these shocks repeatedly as participants rebuild positions after each washout.

Binance Open Interest Surges 31% Since October Event

Current open interest on Binance has climbed to 123,500 BTC, surpassing pre-October 10 levels. The metric is measured in Bitcoin terms rather than notional value to eliminate price fluctuation distortions.

This methodology provides clearer insight into actual investor exposure trends.

Open interest had collapsed to 93,600 BTC immediately following the October event. The subsequent recovery represents roughly 31% growth over the intervening period.

The rebound signals renewed confidence among derivatives traders despite recent volatility.

The measurement approach neutralizes impacts from Bitcoin’s price movements on notional open interest calculations.

Tracking positions in BTC terms reveals underlying behavioral patterns more accurately. Investors have steadily rebuilt their market exposure through futures and perpetual contracts.

The data indicates that lessons from the October liquidation event have not significantly dampened leveraged trading activity.

Participants appear willing to accept similar risk profiles despite recent capital destruction. The cycle of leverage buildup and violent unwinding continues with remarkable consistency across multiple episodes.

The post Bitcoin Holds Steady at 5% Loss While Gold, Silver Plunge Amid $300M Liquidation Wave appeared first on Blockonomi.

TLDR:

GameStop crisis stemmed from outdated two-day settlement infrastructure requiring massive broker deposits. 

Robinhood successfully operates over 2,000 tokenized US stock tokens in European markets with full functionality. 

Current SEC leadership and proposed CLARITY Act create favorable conditions for US equity tokenization adoption. 

Blockchain-based real-time settlement eliminates systemic risk that forced 2021 trading restrictions on investors.

 

Robinhood CEO Vlad Tenev marked the fifth anniversary of the GameStop trading crisis by advocating for blockchain-based equity tokenization.

The 2021 incident forced brokers to halt meme stock purchases due to outdated settlement infrastructure. Tenev believes tokenization can eliminate such restrictions through real-time settlement capabilities.

He pointed to regulatory progress under current SEC leadership as crucial for implementation.

Settlement Infrastructure Remains Core Problem

The GameStop crisis exposed fundamental weaknesses in traditional equity market infrastructure. Clearinghouse rules required massive cash deposits during the two-day settlement period between trades.

Tenev explained the situation involved complex risk-management rules designed to mitigate settlement risks. These systems collapsed when unprecedented trading volume hit concentrated stock positions.

The CEO described how brokers faced impossible capital requirements within hours. He noted the combination of slow financial infrastructure with extreme volatility created massive problems.

His team worked continuously for 72 hours to resolve immediate problems. The company raised over $3 billion to strengthen capital reserves during the chaos.

Tenev stated he vowed to improve both Robinhood’s resilience and the overall system. His advocacy helped reduce settlement times from two days to one day.

He called this achievement the most consequential accomplishment of the Gensler SEC era. However, the CEO emphasized that T+1 settlement still creates delays extending over weekends.

Current infrastructure cannot support modern trading demands or investor expectations. Tenev wrote that in a world of 24-hour news cycles, T+1 remains far too long.

Traditional markets have resisted faster settlement due to entrenched legacy systems. A fundamental technological shift has become necessary for market stability.

Tokenization Offers Real-Time Settlement Solution

Blockchain technology provides the infrastructure upgrade traditional markets lack. Tenev explained that tokenization converts assets like stocks into tokens living on blockchains.

These tokens settle transactions instantly through blockchain’s native capabilities. Real-time settlement eliminates the risk accumulation that caused the GameStop crisis.

The CEO emphasized that moving equities on-chain allows them to benefit from blockchain settlement properties.

No lengthy settlement period means much less systemic risk and reduced pressure. Customers can freely trade how they want and when they want. These capabilities demonstrate practical advantages beyond just settlement speed.

Robinhood already operates tokenized equities in European markets successfully. The platform offers over 2,000 tokens representing U.S.-listed stocks to European traders.

The company plans to enable 24/7 trading and decentralized finance access soon. Investors will gain self-custody options with possibilities for lending and staking.

Major U.S. exchanges and clearinghouses have announced tokenization initiatives recently. Tenev stated that without regulatory clarity, such efforts remain ineffective.

Current SEC leadership is embracing innovation and facilitating experimentation with tokenization. Congress is considering the CLARITY Act to establish permanent regulatory frameworks.

The CEO emphasized that legislation ensures subsequent commissions cannot reverse achieved progress. He concluded by stating that working with the SEC on tokenization guidelines can prevent future restrictions.

The combination of supportive regulators and congressional action creates a unique opportunity. Real-time settlement through tokenization could finally become reality for U.S. retail investors.

The post Robinhood CEO Advocates Blockchain Tokenization to Prevent GameStop-Style Trading Halts appeared first on Blockonomi.

TLDR

OpenAI is seeking to raise up to $100 billion in a new funding round.

Amazon is considering a $50 billion investment, making it the largest investor.

Amazon CEO Andy Jassy is leading talks with OpenAI’s Sam Altman.

The deal could push OpenAI’s valuation to as high as $830 billion.

Amazon continues investing heavily in AI despite recent corporate layoffs.

OpenAI is looking to raise up to $100 billion in new funding, with Amazon considering a $50 billion stake. If successful, this deal could be one of the largest private tech investments in history. Amazon CEO Andy Jassy is leading the talks with OpenAI’s Sam Altman, but details of the deal are still subject to change.

Amazon’s Major Investment in OpenAI

Amazon’s involvement in OpenAI would mark a major shift in its AI investment strategy. Sources close to the discussions indicate that the structure of the deal is still being worked out. Should it happen, Amazon’s $50 billion investment would make it the largest stakeholder in this funding round.

Despite recent corporate layoffs, Amazon continues to pour large sums into artificial intelligence. The company recently cut 16,000 jobs while also committing billions to AI infrastructure. This includes custom AI chips and AI models, making OpenAI a crucial piece of its broader AI strategy.

OpenAI’s New Funding and Potential Valuation

The new round of funding could push OpenAI’s valuation to as high as $830 billion. OpenAI is seeking contributions from other large investors to complete the funding round. Companies such as SoftBank, Thrive Capital, Khosla Ventures, and MGX are already involved.

OpenAI’s growing financial needs stem from the massive costs associated with developing AI systems like ChatGPT. The company is also exploring new revenue streams, including advertisements. This move is crucial to offset the increasing expenses tied to building and maintaining powerful AI models.

As OpenAI seeks massive funding, it is also considering the possibility of going public. The company has not set a timeline for an IPO but is evaluating its options. In addition to the funding talks, OpenAI is negotiating large-scale deals, such as the $38 billion agreement with Amazon Web Services.

These developments come as OpenAI explores new technologies, such as Amazon’s custom AI chips. This partnership could further cement Amazon’s dual play in the AI market, as it continues to invest in both OpenAI and its rival, Anthropic.

The post OpenAI Seeks $100 Billion in Funding, Amazon to Invest $50 Billion appeared first on Blockonomi.

TLDR

Copper is reportedly exploring the possibility of an initial public offering as institutional interest in cryptocurrency grows.

Major banks like Deutsche Bank, Goldman Sachs, and Citigroup are involved in Copper’s discussions about a potential IPO.

Copper offers institutional-grade custody, settlement, and collateral management services for digital assets.

The company has partnered with Cantor Fitzgerald and Coinbase to provide tailored solutions for institutional clients.

BitGo’s recent IPO highlights the growing role of cryptocurrency infrastructure companies in traditional financial markets.

Digital asset custodian Copper is reportedly considering an initial public offering (IPO) following BitGo’s recent debut on the New York Stock Exchange. The move signals increasing institutional interest in cryptocurrency infrastructure companies. Sources close to the discussions revealed that Copper is exploring its options, with major banks such as Deutsche Bank, Goldman Sachs, and Citigroup involved in the process.

Despite the ongoing discussions, Copper has declined to confirm whether it plans to pursue an IPO. A company spokesperson stated that the firm is not planning a public listing at this time. However, the spokesperson refrained from commenting on whether the custodian is in the early stages of talks regarding a potential IPO.

Copper’s Role in the Crypto Space

Copper provides institutional-grade services in custody, settlement, and collateral management for digital assets. The company aims to help financial institutions store and transfer digital assets securely, reducing counterparty risks. Backed by Barclays, Copper has built a reputation for offering tailored solutions to meet the needs of institutional clients.

@CopperHQ Group CEO Amar Kuchinad on what banks are lacking when it comes to technology, workflows and security if they want to embrace crypto.

The full interview is also available on my YouTube and podcast platforms.

YouTube: https://t.co/xjCnyvTydD
Spotify:… pic.twitter.com/yOqA7LCiyy

— Henri Arslanian (@HenriArslanian) January 21, 2026

The firm’s services have been crucial to growing institutional adoption of cryptocurrency. Last year, Cantor Fitzgerald selected Copper as one of its custodians for Bitcoin, alongside Anchorage Digital. Additionally, Copper partnered with Coinbase to facilitate off-exchange settlements for institutional clients, reinforcing its position in the market.

Rising Institutional Demand for Crypto Infrastructure

The increasing demand for cryptocurrency infrastructure reflects the growing institutional interest in digital assets. The landscape has changed significantly, driven by evolving regulations in the United States. Many financial institutions are now looking for secure ways to store and manage digital assets as they enter the market.

The potential IPO of Copper would follow BitGo’s recent market debut. BitGo priced its IPO at $18 per share and raised more than $200 million, although its stock has since seen volatility. The company’s IPO highlights the expanding role of digital asset firms in traditional financial markets.

Several other crypto companies are reportedly exploring public listings. Firms like Kraken, a major crypto exchange, and Ledger, a hardware wallet provider, are considering similar moves. As more digital asset companies pursue public markets, the sector continues to gain traction among investors.

The post Crypto Custodian Copper Looks Into IPO After BitGo’s Market Debut appeared first on Blockonomi.

TLDR:

Hang Seng Gold ETF (03170.HK) launched with Ethereum tokenization, gaining 9% in early trading hours. 

HSBC serves as tokenization agent while physical gold remains stored in designated Hong Kong vaults. 

Tokenized units require qualified distributors for subscription; secondary market trading remains restricted. 

Launch aligns with Hong Kong’s strategy to bridge traditional finance with regulated blockchain technology. 

 

Hang Seng Investment has introduced a physically backed gold exchange-traded fund featuring tokenized share classes on Ethereum. 

The Hang Seng Gold ETF began trading on Thursday on the Hong Kong Stock Exchange under ticker 03170. Early trading saw the fund climb approximately 9% during Asian morning hours. 

This launch represents a notable integration of traditional commodity investment products with blockchain technology infrastructure.

Physical Gold Tracking With Blockchain Integration

The fund tracks the LBMA Gold Price AM and maintains physical bullion in designated Hong Kong vaults. 

According to product disclosures, the fund “closely tracks the LBMA Gold Price AM and holds bullion stored in designated vaults in Hong Kong.” 

Beyond conventional ETF operations, the product offers tokenized units initially issued on Ethereum’s blockchain network. 

Future expansion to additional public blockchains remains possible according to the fund’s prospectus documentation. HSBC serves as the tokenization agent for these digital units.

However, these tokenized shares operate under strict distribution controls rather than open market trading. Investors can only subscribe to or redeem tokenized units through qualified distributors approved by the fund. 

The product cannot be freely traded on secondary markets despite existing on a public blockchain. Hang Seng’s official materials indicate the tokenized units are not yet available for subscription. The company will release these units only after securing all necessary regulatory approvals.

The structure provides institutional-grade custody while leveraging blockchain rails for settlement and record-keeping. 

This approach balances innovation with regulatory compliance in Hong Kong’s evolving digital asset framework. 

Physical gold backing ensures the fund maintains tangible value independent of tokenization features. Storage in Hong Kong vaults provides transparency and accessibility for auditing purposes.

Hong Kong’s Digital Asset Development Strategy

This launch aligns with Hong Kong’s ongoing efforts to establish itself as a regulated crypto asset center. Authorities have actively encouraged projects bridging traditional finance with blockchain infrastructure under proper oversight. 

The Hong Kong Monetary Authority launched a pilot program in November, testing real-value transactions using tokenized deposits. That initiative demonstrated the jurisdiction’s commitment to controlled experimentation with digital financial products.

The timing coincides with gold reaching fresh record highs near $5,600 per ounce on Thursday. Strong precious metals performance provides favorable conditions for new gold investment products to attract capital. 

Hong Kong’s regulatory environment permits such hybrid structures that would face obstacles in many other jurisdictions. The approval process reflects careful balance between innovation and investor protection standards.

Market participants will monitor subscription uptake once tokenized units become available through authorized channels. The product represents a test case for blockchain integration in mainstream investment vehicles. 

Success could prompt additional asset managers to explore similar tokenized fund structures. Hang Seng has not yet provided detailed timelines for when tokenized unit subscriptions will open to qualified investors.

 

The post Hang Seng Launches Ethereum-Based Tokenized Gold ETF in Hong Kong Market appeared first on Blockonomi.

TLDR:

Russia’s crypto regulation bill faces State Duma vote in late June with July 1, 2027 implementation deadline. 

Retail investors must pass qualification tests and face $4,000 annual purchase caps under proposed framework. 

Central bank will compile approved cryptocurrency list likely including Bitcoin, Ethereum, Solana, and Toncoin. 

USDT stablecoins designated for foreign trade, available only through licensed brokerages for companies. 

 

Russia moves forward with long-awaited cryptocurrency legislation as the State Duma prepares to vote on comprehensive regulatory framework by late June.

Anatoly Aksakov, chair of the Financial Market Committee, confirmed the law would take effect July 1, 2027, enabling both retail and institutional investors to purchase Bitcoin and other digital assets.

The legislation addresses crypto exchanges, investor qualifications, purchase limits, and stablecoin usage for international transactions.

Anatoly Aksakov, chair of the Russian State Duma’s Financial Market Committee, said a crypto regulation bill is expected to be voted on by late June and, if approved, would take effect on July 1, 2027. The bill would regulate exchanges, require retail investors to pass…

— Wu Blockchain (@WuBlockchain) January 29, 2026

Regulatory Framework Addresses Exchange Operations and Investor Protections

The upcoming legislation will establish clear guidelines for cryptocurrency exchange operations within Russia. Aksakov told Russia’s Parliamentary Gazette that exchanges currently operate in a quasi-legal grey zone without proper oversight.

“Assuming lawmakers approve the bill, it will come into force on July 1, 2027,” the committee chair stated during the interview.

Unregistered crypto exchange operators will face penalties similar to those imposed for illegal banking activities. The law includes provisions for both fines and potential jail time for non-compliant operators.

This enforcement mechanism mirrors existing financial regulations already applied to unauthorized banking services.

Retail investors must pass qualification tests before accessing cryptocurrency markets under the proposed rules. Lawmakers have discussed implementing an annual purchase cap of $4,000 for retail participants. These measures aim to protect less experienced investors from excessive risk exposure.

The central bank will maintain authority to define which cryptocurrencies qualify for retail investment. Alexandra Fedotova from White Stone Consulting expects regulators to approve the top five to 10 highest-capitalization digital assets.

“The central bank will most likely compile a list of the top five or 10 highest-cap cryptocurrencies on major crypto exchanges,” Fedotova told Parliamentary Gazette, adding that the list will definitely include Bitcoin and Ethereum.

Stablecoins Designated for Cross-Border Trade Applications

The legislation singles out stablecoins as instruments specifically suited for foreign economic activity. Fedotova noted that policymakers recognize the utility of dollar-pegged tokens for international commerce. The lawyer said she expected policymakers to “single out stablecoins as a tool for foreign economic activity.”

USDT, issued by Tether and pegged 1:1 with the US dollar, will serve as a digital dollar equivalent for companies. She explained that USDT will “become a digital dollar for companies, with purchases only permitted via licensed brokerages.”

This structure provides regulatory oversight while enabling businesses to conduct cross-border transactions without direct dollar exposure.

Russia’s regulatory evolution stems from practical economic realities rather than ideological shifts. Sanctions imposed by the United States, European Union, and United Kingdom have restricted Russia’s access to conventional financial systems.

Cryptocurrency has enabled companies to circumvent these limitations, prompting the central bank to reverse its previously skeptical stance.

The impasse between the finance ministry and central bank delayed regulation for years. The ministry advocated for taxation and oversight of crypto trading, while the bank initially supported a China-style prohibition.

Commercial banks now report client demand for direct cryptocurrency access beyond the derivative products currently available.

The central bank plans to launch its digital ruble nationwide in September, complementing rather than replacing the private cryptocurrency market.

 

The post Russia to Implement Comprehensive Crypto Regulation by July 2027, Top Lawmaker Confirms appeared first on Blockonomi.

TLDR

21Shares has launched the Jito Staked SOL ETP to offer European investors exposure to Solana’s staking rewards.

The JitoSOL ETP is listed on Euronext Amsterdam and Paris with tickers JSOL NA in USD and JSOL FP in EUR.

The ETP provides a controlled and transparent way for investors to access JitoSOL, with a 0.99% expense ratio.

JSOL allows investors to benefit from both Solana’s price exposure and additional staking incentives.

21Shares aims to simplify access to JitoSOL for institutional and retail investors through their current brokers.

Digital asset investment firm 21Shares has introduced a new exchange-traded product for European investors, offering access to JitoSOL. The company officially launched the Jito Staked SOL ETP (JSOL), which provides staking rewards from the Solana ecosystem. JSOL is now listed on Euronext Amsterdam and Paris, traded under the tickers JSOL NA (USD) and JSOL FP (EUR).

21Shares Adds New Access to JitoSOL Through Exchange-Traded Product

21Shares has launched the JSOL ETP to simplify access to JitoSOL for European investors through traditional financial platforms. The product enables trading via existing brokers or banks and includes liquid staking features from Solana.

JUST IN: @21shares has launched the Jito Staked $SOL ETP ($JSOL) in Europe, offering @Solana price exposure with onchain staking and MEV rewards. The product is backed by JitoSOL and is listed on Euronext Amsterdam and Paris. pic.twitter.com/w9YKC290tF

— SolanaFloor (@SolanaFloor) January 29, 2026

The company set the total expense ratio at 0.99%, offering controlled and transparent exposure to Solana staking. According to 21Shares, investors benefit from full exposure to SOL’s price while earning staking incentives.

VP and Head of EU Investments at 21Shares, Alistair Byas-Perry, stated, “JitoSOL is an efficient way to stake SOL, maximising yield while ensuring liquidity for institutional players.” He added that JSOL lets investors use existing brokers to access one of Solana’s best-known liquid staking tokens.

JitoSOL offers users extra yield through transaction fees and prioritization on the network. This structure is designed to combine trading flexibility with yield-earning functionality.

Solana’s Role in Scaling Financial Infrastructure and Tokenization

Solana continues to gain traction as a high-throughput network with low transaction costs, supporting both retail and institutional activities. According to 21Shares, its infrastructure rivals Ethereum by enabling real-time payments and asset tokenization.

Visa, PayPal, JPMorgan, and Franklin Templeton have used Solana for payments and tokenized asset issuance. In 2025, Visa’s USDC settlement program on Solana exceeded $3.5 billion in annualized transaction volume.

JPMorgan conducted a $50 million commercial paper deal for Galaxy Digital, using Solana for USDC settlement. The deal marked the first U.S. debt issuance serviced on a public blockchain.

Meanwhile, the Wyoming Stable Token Commission issued the Frontier Stable Token with oversight from Franklin Templeton. The token first launched on Avalanche, then distributed on Solana and Kraken.

Solana’s expanding ecosystem now supports broad institutional use, from stablecoins to traditional finance partnerships. These developments show increasing confidence in its technical performance for real-world economic activity.

Growing Institutional Momentum Behind Solana and JitoSOL

The Jito Foundation confirmed that JitoSOL was built from scratch to optimize Solana staking with extra income streams. Brian Smith, President of the Jito Foundation, said it was engineered to meet institutional liquidity needs.

Its integration with 21Shares’ JSOL ETP allows European institutions to tap into Solana’s DeFi market. The product links tokenized rewards and staking profits to conventional trading methods.

Solana’s on-chain stablecoin market grew to $13.9 billion, with USDC accounting for over half the supply. This supports further development of liquid staking products like JSOL.

Morgan Stanley filed for Solana and Bitcoin trusts with the U.S. SEC in early January 2026. These passive vehicles will track market prices once approved, expanding investor access to crypto assets.

The post 21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana appeared first on Blockonomi.

TLDR:

Federal Reserve maintains current federal funds rate target range amid solid economic expansion trends 

Chair Powell confirms labor market shows stabilization signs after period of previous volatility 

Inflation has eased substantially from mid-2022 peaks but remains somewhat elevated above target 

FOMC adopts meeting-by-meeting approach with no preset course for future monetary policy decisions

 

The Federal Reserve System continues its oversight of monetary policy through its three-tiered structure while maintaining the federal funds rate target range.

Chair Powell announced the decision during a recent press conference, citing solid economic expansion and labor market stabilization. Inflation has declined from mid-2022 peaks but remains above target levels.

The central bank emphasizes its commitment to data-dependent policy decisions on a meeting-by-meeting basis.

Structural Framework Guides Policy Implementation

The Federal Reserve operates through three distinct entities that collaborate on monetary policy and financial oversight. The Board of Governors serves as the federal agency directing the entire system’s operations.

Seven members lead this board after presidential nomination and Senate confirmation. The Board sets overarching policy direction for the nation’s central banking system.

Twelve Federal Reserve Banks function independently across their designated districts throughout the country. These regional institutions monitor local economic conditions and supervise financial institutions within their territories.

The Banks enforce consumer protection regulations and provide essential liquidity to commercial banks. They also manage critical components of the national payment infrastructure.

The Reserve Banks serve dual roles as the government’s banking institution and service providers to depository institutions.

This structure allows for regional economic insights to inform national policy decisions. Each district bank contributes unique perspectives on local business conditions and employment trends. The decentralized approach ensures comprehensive coverage of diverse economic landscapes.

The Federal Open Market Committee represents the policy-making arm of the Federal Reserve System. FOMC membership includes Board governors and Reserve Bank representatives who convene regularly.

The Committee formulates monetary policy aimed at achieving maximum employment and price stability. Interest rate adjustments and credit condition modifications serve as primary tools for economic influence.

Economic Outlook Shapes Policy Direction

Chair Powell addressed current conditions during the press conference, noting economic activity has been expanding at a solid pace.

The labor market demonstrates signs of reaching equilibrium after previous volatility. Powell observed that the labor market shows signs of stabilization across multiple indicators. These developments inform the Fed’s assessment of appropriate policy measures.

Powell acknowledged that inflation has eased substantially from its highs in mid-2022 during his remarks. Consumer price increases have moderated but remain somewhat elevated above target levels.

The Committee maintains focus on bringing inflation sustainably back to target levels. Powell stated the goal remains to bring inflation sustainably to the 2 percent objective.

The Chair stressed that monetary policy is not on a preset course going forward. The FOMC evaluates incoming data before each scheduled meeting to determine appropriate actions.

Powell explained decisions will be made on a meeting basis rather than following predetermined timelines. The central bank prioritizes supporting maximum employment while pursuing price stability goals.

Powell also emphasized the importance of keeping longer-term inflation expectations well-anchored throughout the adjustment period.

The Federal Reserve Education program extends beyond policy implementation to public engagement. Educational resources serve students from kindergarten through college with economics and personal finance materials.

These initiatives aim to empower consumers to make informed financial decisions about their economic futures.

The post Federal Reserve Holds Rates Steady as Powell Cites Economic Stabilization and Inflation Progress appeared first on Blockonomi.

TLDR:

Ethereum trades in forced equilibrium within defined boxes, selling at highs and buying at lows without structural direction. 

The consolidation creates messy low-timeframe conditions with false breakouts that punish impulsive traders significantly. 

Critical support holds around $2,930 with statistical data showing low probability of breaking the weekly low currently. 

Upside targets sit near $3,070 liquidity zone, requiring market structure break confirmation on multiple timeframes first.

 

Ethereum continues trading within defined price ranges without establishing structural direction, according to recent market analysis.

The asset remains confined between key support and resistance levels that have held for months. Technical analysts observe this pattern as a forced equilibrium rather than genuine market strength or weakness, creating challenges for short-term traders seeking clear trends.

Extended Consolidation Creates Trading Complexity

The prolonged consolidation phase has transformed ETH into a time-consuming market rather than a trending one. Analyst EliZ notes the asset consistently sells at upper boundaries and attracts buying pressure at lower zones.

This repetitive behavior generates a structure where liquidity simply rotates without producing meaningful directional momentum. The pattern has persisted across multiple timeframes, from daily charts extending to yearly perspectives.

$ETH macro

The key here is to look up and stop getting caught up in the daily noise.

If you look at these charts from a macro perspective, what emerges is not real strength or weakness, but an enormous forced equilibrium. The price continues to move within well-defined boxes,… pic.twitter.com/lS4kwDfEND

— EliZ (@eliz883) January 29, 2026

Market participants frequently misread short-term movements as potential regime changes. However, the broader context reveals these fluctuations as noise within established boundaries.

Without sustained acceptance beyond critical technical areas, each bounce or decline merely represents another cycle within the existing framework.

The environment particularly punishes traders who force positions based on emotional reactions to isolated price movements or social media commentary.

Lower timeframe analysis reveals messy, non-fluid action filled with false breakouts and immediate reversals. These conditions favor patient traders who reduce position sizes and wait for high-probability setups.

The current structure rewards discipline over frequency, as most intraday movements fail to produce follow-through.

Until ETH demonstrates a clean breakout above resistance or breakdown below support, the market maintains its neutral stance.

Technical setups require clear triggers rather than anticipatory positioning. The consolidation makes premature entries costly, as price action repeatedly invalidates both bullish and bearish narratives.

Traders operating on gut reactions or single-candle interpretations typically experience the worst outcomes in these conditions.

The macro perspective demands patience until the market provides genuine signals of directional commitment.

Support Levels Hold Despite Testing Pressure

Lennaert Snyder identifies ETH maintaining its uptrend with crucial support around the $2,930 level. Statistical analysis suggests low probability of breaking the weekly low, shifting focus toward long opportunities.

The preferred scenario involves sweeping the $2,938 low before establishing a market structure break that signals upside continuation. Target liquidity sits near $3,070, representing the next meaningful resistance zone.

$ETH is maintaining the uptrend.

Just like BTC, it's now holding an important support box around ~$2,930.

Statistics show a low probability of taking out the weekly low, therefore I'm focused on longs here.

The trigger I'd like to see is that we sweep the current ~$2,938 low,… pic.twitter.com/kfwqsbdAFR

— Lennaert Snyder (@LennaertSnyder) January 29, 2026

The depth of potential downside sweeps remains uncertain, requiring adaptive position management. If price develops a new swing high during deeper retests, the market structure break level adjusts accordingly.

This flexibility accounts for manipulation tactics that often precede genuine directional moves. The support box may experience additional testing or brief violations before providing the technical confirmation traders seek.

Multiple timeframe analysis suggests watching M15, M30, or H1 charts for the market structure break signal. This approach allows traders to catch moves after confirmation rather than during ambiguous price action.

Risk management involves taking partial profits at intermediate levels while maintaining core positions toward the $3,070 target.

The strategy acknowledges current volatility while positioning for potential upside resolution of the consolidation pattern.

The post Ethereum Trapped in Macro Equilibrium as Analysts Map Critical Breakout Levels appeared first on Blockonomi.

TLDR:

Traditional four-year crypto cycles no longer dictate market performance as liquidity flows replace timing

Altcoin rallies shortened from 60 days in 2024 to just 20 days in 2025 amid extreme concentration

ETFs and digital asset trusts created walled gardens that trapped capital in major cryptocurrencies

Three catalysts could broaden 2026 markets: wider ETF mandates, major rallies, or retail rotation

 

The cryptocurrency market’s traditional four-year cycle appears to be ending, according to recent analysis. The year 2025 failed to produce the expected rally that previous cycles delivered.

Instead, market performance now depends on liquidity flows and investor attention rather than predictable timing patterns.

This shift marks a potential transition point for digital assets, moving from pure speculation toward becoming a more established asset class.

Capital Flow Patterns Reveal New Market Structure

The flow of capital within crypto markets has fundamentally changed over the past year. Previously, gains from Bitcoin would naturally cascade through the ecosystem.

Profits moved from Bitcoin to Ethereum, then filtered down to blue-chip tokens before reaching smaller altcoins. This pattern created broad-based rallies that lifted most assets during bull markets.

Data from Wintermute’s over-the-counter trading desk reveals this transmission mechanism weakened significantly throughout 2025. Exchange-traded funds and digital asset trusts have created what analysts call “walled gardens.”

These investment vehicles generate consistent demand for major cryptocurrencies but don’t automatically rotate capital into wider market segments.

Retail investors have simultaneously shifted their focus toward traditional equities. Interest in artificial intelligence stocks, rare earth elements, and quantum computing companies has diverted attention from crypto assets. This combination of factors produced extreme market concentration in 2025.

The duration of altcoin rallies dropped sharply during this period. Average rally lengths fell from 60 days in 2024 to just 20 days in 2025.

Meanwhile, a small group of major assets captured the vast majority of new capital entering the space. Most tokens outside this elite tier struggled to attract meaningful investment despite broader market conditions.

Three Scenarios Could Broaden Market Participation

Three distinct pathways could potentially reverse the concentration trend and spread gains more widely in 2026. Each scenario carries different probability levels and would produce varying effects on market structure.

The first path involves the expansion of institutional investment mandates. Exchange-traded funds and digital asset trusts currently focus on Bitcoin and Ethereum almost exclusively.

Recent filings for Solana and XRP exchange-traded funds suggest this may be changing. Approval of these products would open new institutional channels for assets beyond the current top two.

Strong performance from Bitcoin or Ethereum represents the second potential catalyst. A sustained rally in either asset would likely create wealth effects similar to those observed in 2024.

Traders and investors with profits in major tokens historically rotate portions of those gains into smaller assets. However, the magnitude of any such rotation remains uncertain given structural market changes.

The return of retail investor attention forms the third scenario. A rotation of mindshare away from equities and back toward crypto would bring fresh capital and stablecoin creation.

This represents the least probable outcome but would meaningfully expand market participation beyond current levels.

The actual direction of the 2026 market depends on whether any of these catalysts materialize. Capital must find ways to flow beyond large-cap assets for broader recovery to occur.

Understanding these structural dynamics will prove essential for navigating the coming year’s opportunities.

The post Crypto’s Four-Year Cycle Ends: Three Scenarios That Could Define 2026 Markets appeared first on Blockonomi.

TLDR:

Sony Innovation Fund leads Series A with $13M, lifting Startale’s disclosed funding to $20M total.

Soneium Layer 2 shows traction with 500M+ transactions, 5.4M wallets, and 250+ dApps since January 2025 launch.

Funding accelerates creator-centric, onchain entertainment using AI, IP, and Ethereum L2 rails at global scale.

Sony–Startale partnership deepens via Block Solutions Labs, backing vertical blockchain stacks.

 

Sony Innovation Fund has committed an additional $13 million to Startale Group, the co-developer of the Soneium blockchain platform. This investment represents the first tranche of Startale’s Series A funding round.

The capital injection brings Startale’s total disclosed funding to $20 million, following a $3.5 million seed round from Sony in 2023 and a $3.5 million seed extension from UOB Venture Management and Samsung Next in 2024.

Partnership Expansion Drives Infrastructure Development

The latest funding deepens the collaboration between Sony and Startale Group, which began over a year ago. Sony Block Solutions Labs Pte. Ltd., the joint venture behind Soneium, serves as the operational foundation for this partnership.

The continued investment signals Sony’s confidence in Startale’s execution capabilities and strategic vision for blockchain infrastructure.

Soneium has achieved notable growth since its mainnet launch in January 2025. The Ethereum Layer 2 network has processed over 500 million transactions and attracted 5.4 million active wallets.

More than 250 decentralized applications currently operate on the platform, establishing Soneium as a prominent player in the Layer 2 ecosystem.

The Startale App functions as the primary access point to Soneium’s ecosystem. It integrates wallet functionality with asset management and application access. Startale USD (USDSC) provides a unified settlement layer that connects applications, users, and payment systems across the network.

Startale Group announced the investment through its official social media channels, stating that Sony Innovation Fund’s follow-on investment reinforces “the long-term shared vision between Sony and Startale to build infrastructure for onchain entertainment.”

The company added that Startale will continue strengthening Soneium as “a creator-centric platform for creator-led value and participatory fan experiences in the AI era.”

Startale Group is proud to announce a $13M follow-on investment from Sony Innovation Fund, reinforcing the long-term shared vision between @Sony and Startale to build infrastructure for onchain entertainment. pic.twitter.com/BNsHhUqxm7

— Startale (@StartaleGroup) January 29, 2026

Entertainment and AI Integration Shape Future Direction

The partnership addresses evolving challenges in the entertainment industry as generative AI transforms content creation and distribution.

Sony’s entertainment and technology expertise combines with Startale’s blockchain infrastructure capabilities. This collaboration aims to develop new models for intellectual property-led platforms and creator-centric monetization.

Sota Watanabe, CEO of Startale Group, emphasized the strategic nature of the relationship. “Startale has been an important partner to Sony since the early days of Soneium,” Watanabe said.

He explained that their vision is “to bring the world on-chain, and Sony’s continued support strengthens our ability to deliver the infrastructure required to realize that vision at global scale.”

Kazuhito Hadano, CEO of Sony Ventures Corporation, described Startale’s comprehensive approach to blockchain development. “Startale is a company working across the blockchain space, from infrastructure to applications,” Hadano noted.

He highlighted the team’s global perspective and focus on “enabling new value flows built on on-chain technologies,” adding that Sony looks forward to “continuing to support Startale’s challenges and ambitions going forward.”

The funding will support Startale’s vertically integrated approach to on-chain infrastructure development. This includes expanding Soneium’s capabilities and enhancing the ecosystem’s application layer.

The partnership demonstrates institutional commitment to building entertainment-native blockchain platforms that bridge traditional media and decentralized technologies.

The post Sony Innovation Fund Invests $13 Million in Startale Group to Advance Soneium Blockchain appeared first on Blockonomi.

TLDR

Joby Aviation (JOBY) shares fell 9.1% in premarket trading after the company announced a larger-than-expected $1.2 billion capital raise.

The company is selling $600 million in convertible notes with 0.75% interest and $600 million in stock at $11.35 per share.

Proceeds will fund certification efforts targeting mid-2026 for the Middle East and late 2026 for the U.S.

The convertible notes convert at $14.19 per share, a 25% premium, with capped call transactions at $22.70 to limit dilution.

Analysts forecast $1.2 billion in sales by 2029, but only 18% recommend buying the stock.

Joby Aviation shares took a hit Thursday morning after the electric vertical takeoff and landing aircraft developer unveiled a capital raise larger than expected.

The stock fell 9.1% to $12.15 in premarket action. Joby had closed Wednesday’s session at $13.37.

The company announced it would raise $1.2 billion through two separate offerings. This surpassed its initial $1 billion target.

The funding comes as no surprise to investors familiar with Joby’s cash needs. The company burns roughly $500 million each year as it develops its electric air taxi business.

The Deal Breakdown

Joby structured the raise in two parts. The first involves $600 million in convertible senior notes maturing in 2032.

These notes carry a 0.75% interest rate paid twice yearly. The conversion price was set at $14.19 per share.

That conversion price represents a 25% premium over the stock’s offering price. It gives noteholders upside if shares rally above that level.

The second portion includes $600 million in common stock. Joby priced these shares at $11.35 each, below the current market price.

The company will issue 52.8 million shares at this price. Morgan Stanley is also offering 5.3 million borrowed shares for hedging purposes.

Both offerings close on February 2, 2026. Underwriters have options to purchase additional securities within 30 days.

Joby negotiated capped call transactions with a ceiling of $22.70 per share. These deals help reduce dilution when noteholders eventually convert their bonds.

The company expects to collect about $576 million from the stock sale. The notes should generate roughly $582.9 million.

Where the Money Goes

About $55 million will pay for the capped call transactions. The rest flows into several buckets.

Certification efforts top the list. Joby is racing to get regulatory approval in multiple markets.

The company targets Middle East certification in the first half of 2026. U.S. approval should follow in the second half of the year.

Manufacturing expansion also requires capital. Joby recently acquired a 700,000-square-foot facility in Dayton, Ohio.

The company plans to double production to four aircraft monthly by 2027. Commercial operations preparation and general corporate needs will absorb remaining funds.

Joby doesn’t generate meaningful revenue yet. The business model depends on getting aircraft certified and into service.

Wall Street projects annual sales will hit $1.2 billion by 2029. The stock currently trades at 10 times those estimated future sales.

That valuation looks rich to most analysts. Only 18% rate shares as a Buy, well below the 55% average for S&P 500 stocks.

The average price target sits at $13, roughly in line with Wednesday’s close. The stock has gained 60% over the past year despite Thursday’s pullback.

Morgan Stanley, Allen & Company LLC and BofA Securities are managing the stock offering. Goldman Sachs joined the group handling the convertible notes.

The post Joby Aviation (JOBY) Stock: Why Shares Dropped 9% Before the Bell appeared first on Blockonomi.

TLDR

MP Materials (MP) dropped over 8% in pre-market trading Thursday after Reuters reported the Trump administration withdrew minimum price guarantees for critical minerals.

MP Materials rejected the report as “inaccurate and misleading,” confirming its Department of War contract and Price Protection Agreement remain fully active.

The stock experienced sharp swings this week, falling 10% Monday after rival USA Rare Earth received government funding before recovering Tuesday.

Analysts rate MP stock a Strong Buy with a $76.13 average price target, representing 13.6% potential upside.

MP Materials runs the only large-scale rare earth mining facility in North America and is building a new Texas manufacturing plant.

MP Materials stock dropped more than 8% in pre-market trading Thursday. A Reuters article claimed the Trump administration backed away from guaranteeing minimum prices for critical minerals projects.

The company fired back quickly. MP Materials labeled the report “inaccurate, misleading, and inconsistent with the facts.”

The rare earth producer said its binding contract with the U.S. Department of War stays in full effect. The Price Protection Agreement from last year also remains unchanged.

MP Materials stated nothing about its contract has been modified. The government’s obligations under the deal haven’t changed either.

Turbulent Trading Week

This week has tested investor nerves. Shares crashed over 10% Monday after the government granted major funding to competitor USA Rare Earth.

Markets worried that a well-funded rival could damage MP’s prospects. But Tuesday brought a reversal as investors reconsidered the situation.

The stock bounced back when traders realized demand can support multiple North American suppliers. Defense contracts and clean energy needs continue driving rare earth demand.

MP Materials holds the top position as America’s rare earth producer. The company runs the Mountain Pass facility in California, the only large-scale rare earth operation in North America.

A new manufacturing facility in Fort Worth, Texas is under development. This expansion aims to create rare earth metals, alloys, and magnets domestically.

What Reuters Got Wrong

The Reuters piece cited funding limits and pricing challenges as reasons for the policy change. A minimum price guarantee would shield revenue when rare earth prices drop.

Losing this potential protection adds uncertainty about future price support. But the reported policy shift doesn’t touch MP’s current contracts or operations.

The company operates independently of any speculated policy changes. Its existing agreements provide the framework for ongoing business.

Financial Metrics and Analyst Views

MP Materials carries an $11.88 billion market cap. Trailing twelve-month sales reached $232.74 million.

The financial snapshot shows mixed results. Revenue fell 11.8% over three years while margins remain negative.

Operating margin sits at negative 79.53%. Net margin stands at negative 50.55%.

Liquidity tells a better story. The current ratio of 8.05 and quick ratio of 7.51 show strong short-term financial position.

The Altman Z-Score of 4.48 indicates solid overall financial health. Institutional investors own 72.35% of shares, showing significant institutional confidence.

TipRanks reports analysts maintain a Strong Buy consensus. Eleven Buy ratings came in during the last three months.

The average analyst price target hits $76.13. That implies 13.6% upside from current trading levels.

Long-term demand drivers remain intact. Defense spending, electric vehicle production, and renewable energy projects all require rare earth materials.

The company’s monopoly on large-scale North American rare earth production provides strategic value. The Texas facility expansion could strengthen this position further when completed.

The post MP Materials (MP) Stock Drops as Company Slams “Misleading” Price Protection Report appeared first on Blockonomi.

TLDR

SAP shares crashed 11% Thursday after Q4 cloud backlog grew 25%, missing Wall Street’s 26% projection

The drop represents SAP’s largest single-day decline since October 2020 when the stock fell 22%

Management warned cloud backlog growth will “slightly decelerate” in 2026, adding to investor concerns

Fourth quarter results showed cloud revenue up 26% to 5.61 billion euros and total revenue climbing 9% to 9.68 billion euros

SAP launched a 10 billion euro share repurchase program starting February 2026 and ending December 2027

SAP took a beating Thursday. The German software company saw shares drop 11% in early European trading.

The trigger was disappointing cloud growth numbers.

#SAP SE$SAP, Q4-25.

Results:
Adj. EPS: €1.62
Revenue: €9.68B
Net Income: €1.90B
Cloud revenue hit €5.61B in Q4, supported by strong growth in SAP Business AI and Cloud ERP adoption. pic.twitter.com/uoHE4QGJzp

— EarningsTime (@Earnings_Time) January 29, 2026

SAP reported current cloud backlog growth of 25% for the fourth quarter. That brought the total to 21.05 billion euros, or about $25.17 billion. Wall Street expected 26% growth.

Missing by one percentage point might seem trivial. In the software industry, it’s anything but.

This marks SAP’s worst trading session since October 2020. Back then, shares plummeted 22% after weak third-quarter earnings. The stock has now fallen more than 30% over the past 12 months.

CEO Christian Klein attempted damage control. He said the Q4 cloud backlog builds a “strong foundation” for revenue acceleration through 2027.

Investors didn’t share his optimism.

Forward Guidance Raises Red Flags

The guidance created bigger problems than the Q4 miss. SAP expects cloud revenue growth between 23% and 25% for 2026. Analysts wanted 24% to 26%.

Management also cautioned that cloud backlog growth would “slightly decelerate” this year.

That’s the opposite of what the market wanted.

SAP attributed the backlog shortfall to timing. Large transformation deals scheduled revenue recognition for outer years. Legal requirements for termination clauses also played a role. Together, these factors reduced growth by approximately 1 percentage point.

UBS analysts called the cloud backlog results a “disappointment” in their Thursday analysis.

Citi analysts wrote that SAP’s fundamentals stay solid. But they questioned whether the results satisfy investors given current sector weakness. AI spending concerns and bubble fears continue weighing on software stocks.

Quarterly Results Show Mixed Picture

The actual Q4 performance had bright spots. Total revenue reached 9.68 billion euros, growing 9% year-over-year. Cloud business sales surged 26% to 5.61 billion euros.

Geography mattered. Canada, Brazil, Germany, India, Italy, Spain, the UK and South Korea delivered strong cloud performance. Australia, Japan, Mexico, Saudi Arabia, Singapore and the U.S. also contributed solid results.

SAP closed 2025 with full-year revenue of 36.80 billion euros. That’s 11% growth at constant currencies.

Net profit for the quarter came in at 1.89 billion euros compared to 1.63 billion euros a year earlier. Operating profit increased to 2.83 billion euros from 2.44 billion euros. Operating margin reached 29.2%.

SAP sweetened the deal with a share buyback announcement. The company will repurchase up to 10 billion euros worth of stock. The program kicks off in February 2026 and concludes at the end of 2027.

For 2026, SAP forecasts non-IFRS operating profit between 11.9 billion and 12.3 billion euros. Free cash flow should land around 10 billion euros. The company continues transitioning from software licenses to subscription-based cloud services.

The post SAP Stock: Shares Fall 11% After Earnings Report – Here’s Why appeared first on Blockonomi.

TLDR

Microsoft spent $37.5 billion on AI infrastructure in Q2, with most going to chips

Meta projects $135 billion in 2026 capex, doubling last year’s investment

Both companies say AI demand outpaces their computing supply

China greenlit Nvidia H200 chip sales to ByteDance, Alibaba, and Tencent

Nvidia stock hit highest close since early November

Nvidia shares reached their highest closing price since early November on Wednesday. The stock dipped 0.7% after hours but continues trading near recent highs.

The rally comes as major technology companies announce bigger-than-expected AI spending plans. Microsoft and Meta both revealed investments that caught Wall Street off guard.

Microsoft’s fiscal second quarter capital expenditures totaled $37.5 billion. That beat the Street’s $36.7 billion estimate. Roughly two-thirds went toward purchasing chips.

CFO Amy Hood explained that AI hardware shortages continue limiting cloud business growth. The company uses its in-house Maia 200 chip alongside processors from Nvidia and AMD.

CEO Satya Nadella stressed flexibility in the company’s chip strategy. “We want to make sure we’re not locked into any one thing,” he said during the earnings call.

Meta Goes All-In on AI Capacity

Meta Platforms announced even larger plans for 2026. The social media giant expects to spend up to $135 billion this year. That’s 20% above analyst expectations and twice what it spent in 2025.

CFO Susan Li described a significant capacity gap. “Demands for compute resources across the company have increased even faster than our supply,” she told analysts.

The company plans to add capacity throughout the year. But Li warned constraints will persist through most of 2026. Meta’s own data center facilities won’t contribute meaningfully until late in the year.

China Opens Door for H200 Sales

Nvidia scored a win in China on Wednesday. Reuters reported Chinese authorities approved H200 chip sales to major domestic tech firms.

ByteDance, Alibaba, and Tencent can now purchase the advanced system. This reverses earlier pressure for companies to buy Chinese-made alternatives.

The U.S. had authorized these sales earlier in 2026. But Chinese regulatory approval remained uncertain until this week. Nvidia previously estimated China export restrictions cost $8 billion in lost revenue.

Broader Chip Sector Momentum

Other semiconductor companies posted strong results Wednesday. ASML reported fourth-quarter earnings and orders that topped expectations. The Dutch firm’s 2026 sales guidance also exceeded forecasts.

SK Hynix shares jumped over 5% after announcing record 2025 profits. The VanEck Semiconductor ETF climbed 1.9%.

Nvidia shares gained approximately 1.6% in premarket trading. The moves reflect growing confidence that AI chip demand will remain robust as tech giants race to expand computing power.

The post Nvidia (NVDA) Stock Gains as Big Tech Spending Spree Fuels Chip Demand appeared first on Blockonomi.