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Taskforce Representing Regulated Crypto Platforms and Members of the Public Urges National Treasury and SARB to Reconsider Draft Regulations Before It’s Too Late.
CATASTROPHE (Crypto Asset Taskforce for Advancing Sound, Technology-Neutral Regulation for Opportunity, Prosperity and a Healthy Economy) has launched a national campaign to highlight the unintended adverse consequences for South Africa if newly proposed cross-border regulations become law.
In a press release, the coalition says it brings together many leading regulated Crypto Asset Service Providers (CASPs) and other organisations, including VALR, Luno, AltCoinTrader, and EasyEquities, as well as professors, lawyers, economists, entrepreneurs, and many other members of the public. CATASTROPHE claims that restrictive draft rules will harm domestic enterprises and jobs, slow economic participation, and isolate South Africa from the global digital economy.
EXPERT OPINION | Oversight Should Focus Where it Matters Most, Says MoneyBadger on the South Africa Capital Flow Management Draft Regulations
Two Critical Issues in the Proposed Draft Regulations
The draft framework, published by South Africa’s National Treasury and the South African Reserve Bank (SARB), introduces two major restrictions:
Blocking Cross-Border Crypto Payments by Businesses: South African companies would be prohibited from using regulated crypto rails for otherwise legitimate international transactions, putting local businesses at a severe competitive disadvantage globally.
Restricting Individual Self-Custody: While individuals can withdraw assets from a local CASP to a personal self-hosted wallet, transferring those assets back into a regulated South African platform would be designated as “non-permissible”. This creates an arbitrary one-way door out of the domestic regulated ecosystem, and would force legitimate activity to go underground or overseas.
According to the CATASTROPHE website, thousands of jobs in South Africa would be threatened, millions of South African crypto holders would be adversely impacted and billions of tax revenues to SARS could disappear if these draft regulations are implemented as currently drafted.
REPORT | South African Regulator, FSCA, to Consider Adding ‘Certain DeFi Use Cases’ onto the IFWG Sandbox, Says DeFi Users to Reach ~400,000 in 2025
Alternative Approach
As an alternative, CATASTROPHE proposes that South Africa should regulate equivalent cross-border economic activity consistently. Banks, Authorised Dealers and Authorised Crypto Asset Service Providers may use different technologies, however, equivalent activities should be subject to equivalent permissions, reporting obligations and regulatory outcomes.
At the MTN Group Fintech 2026 Summit, SARB Governor, Lesetja Kganyago, said:
“The principle is straightforward: similar payment activities should be subject to similar regulatory expectations, whether they are performed by a bank or a fintech.”
CASE STUDY | The Kastelo vs. South Africa Reserve Bank Court Ruling Gives Authorities Greater Powers to Scrutinise Crypto Transactions
The CATASTROPHE coalition emphasises that failing to apply the same principle to cross-border payments would represent a departure from sound, technology-neutral regulation and would be inconsistent with the principle articulated by the Governor himself.
In essence, CATASTROPHE calls for a level playing field for cross-border payments without discriminating against any particular technology. Regulation should be fair and designed in the interests of South African consumers and businesses, promoting competition, innovation and choice.
EXPERT OPINION | Oversight Should Focus Where it Matters Most, Says MoneyBadger on the South Africa Capital Flow Management Draft Regulations
Disconnect from Global Financial Progress
These proposed regulations come at a time when stablecoins and digital asset rails are expanding exponentially worldwide, delivering faster transaction speeds, lower cross-border costs, and greater transparency – all benefits that would accrue to South African individuals and businesses.
Global financial institutions are making multi-billion-dollar investments into stablecoin infrastructure. The payment giant, Stripe, and the global card network, Mastercard, acquired stablecoin businesses for $1.1bn and $1.8bn respectively since last year. Major blockchain settlement initiatives by Visa and global banks have also been announced. While the rest of the world integrates modern digital payment rails, the current draft regulations threaten to prevent South African businesses and residents from benefiting from these global advances.
According to the campaign, billions of rand in foreign investment into South Africa have already been put on hold pending the outcome of these draft regulations.
REGULATION | South Africa Could Unlock ~$30 Million in Tax Revenue in 5 Years by Modernizing Crypto Rules, Says Luno
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About CATASTROPHE
CATASTROPHE (Crypto Asset Taskforce for Advancing Sound, Technology-Neutral Regulation for Opportunity, Prosperity and a Healthy Economy) is a single-purpose coalition of South African regulated CASPs, institutions, tech startups, law firms and members of the public.
Formed to advocate for balanced, risk-based capital flow rules, CATASTROPHE will dissolve once its objective of achieving a better regulatory outcome for South Africa has been accomplished.
INSIGHTS | Why South Africa is Re-Writing Decades-Old Money Rules





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Strategy, the world’s largest institutional holder of Bitcoin, has doubled its authorization to repurchase its STRC preferred shares to $2 billion prioritizing the repair of a key funding channel over adding more Bitcoin to its balance sheet.
The company spent $176.3 million buying back 1.81 million STRC shares between Aug. 31 and Sept. 7, taking cumulative repurchases since July to about $811.5 million. STRC was still trading below its $100 stated value prompting the board to expand the program.

The decision has a direct impact on Strategy’s Bitcoin accumulation.

MARKET ANALYSIS | Strategy Doubles STRC Stock Buyback Authorization to $2 Billion

The company bought no Bitcoin during the latest period leaving its holdings unchanged at 845,050 BTC while the STRC purchases were funded from its flexible USD cash balance.
That matters because the same pool of cash is used to
acquire Bitcoin,
manage Strategy’s capital structure, and
support other treasury operations.
In other words, every dollar directed toward the STRC buyback is capital that is temporarily unavailable for Bitcoin purchases.
But the move also highlights why Strategy sees the preferred stock as strategically important.
STRC was created as a funding vehicle for Strategy’s Bitcoin strategy. The company has said it will not issue new STRC below its $100 stated value, meaning a sustained discount effectively shuts down an important source of capital for future Bitcoin purchases. Restoring STRC to around par would allow Strategy to resume using the security to raise capital rather than spending capital to support it.
Strategy therefore appears to be treating the STRC buyback not simply as a defensive move to support the preferred stock, but as an investment in the infrastructure that underpins its Bitcoin treasury strategy.

The economics also favor repurchases while STRC trades below par.

BITCOIN | The World’s Largest Institutional Holder of Bitcoin Makes a Significant Shift in its Strategy

Buying a $100 preferred share for less than $100 allows Strategy to retire the associated preferred capital and future dividend obligation at a discount. Strategy has said it intends to buy more aggressively when STRC trades further below par and reduce purchases as it approaches $100.
The problem is that the discount has narrowed while the amount of capital required to support the security has increased. Strategy spent $25 million on its first week of repurchases but its latest weekly purchase rose to $176.3 million even as STRC traded within roughly 2% to 3% of par.

That creates a clear trade-off for Strategy:
Bitcoin accumulation versus repairing the financing machine that allows it to buy more Bitcoin.

REALITY CHECK | World’s Largest Institutional Holder of Bitcoin Sells Over 1,500 Bitcoins . . . Again

The company briefly demonstrated that it could do both last week, raising $602.8 million through MSTR sales, spending $151.8 million on STRC and using $369.7 million to buy 4,603 BTC. But without fresh MSTR issuance in the latest period, Bitcoin purchases stopped while STRC continued to absorb cash.
The broader message is that Strategy’s corporate Bitcoin strategy is no longer simply about accumulating as much Bitcoin as possible. It is increasingly about maintaining a capital structure capable of financing that accumulation over the long term.

STRC is central to that strategy.

If Strategy can restore the preferred stock to sustained trading around $100 and revive investor demand, the security can shift from being a drain on corporate liquidity back into a source of capital.
That makes the $2 billion buyback authorization a bet on the financing architecture behind Strategy’s Bitcoin treasury even if it means slowing Bitcoin accumulation in the near term.
Strategy’s 845,050 BTC balance therefore remains unchanged for now but the latest move shows the company is willing to sacrifice near-term Bitcoin purchases to repair the capital markets machinery it believes can ultimately finance a larger Bitcoin balance sheet.


CASE STUDY | The Financing Model that Fueled Rapid Expansion of Bitcoin Treasury Companies is Showing Signs of Strain




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American Crypto exchange, Gemini, has received a Major Payment Institution (MPI) license from Singapore’s central bank, allowing its local entity to provide digital payment token and cross-border money transfer services.
The Monetary Authority of Singapore (MAS) license was granted to Gemini Digital Payments Singapore, completing a regulatory process that began with in-principle approval in October 2024.
The MPI license allows Gemini to provide regulated payment services without the transaction-volume limits that apply to standard payment institutions although larger operators face additional regulatory requirements because of the risks associated with their scale.

REGULATION | Singapore Orders Local Crypto Firms to Halt Overseas Activity by June 30 2025

Gemini said it has served customers in Singapore since 2020 and views the city-state as a strategic hub for its retail and institutional business.
The exchange currently offers spot crypto trading, digital-asset custody and over-the-counter services in Singapore.
Gemini shifted Singapore customers to its locally incorporated entity in April 2025 as it worked toward securing the full license.
The approval comes as Singapore continues to position itself as a regulated hub for digital-asset businesses with MAS requiring crypto firms to meet licensing and compliance standards before providing regulated services.

REGULATION | ‘ByBit is Not Licensed or Regulated in the Country,’ Warns the Monetary Authority of Singapore





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Plattsburgh, New York, is considering a 12-month moratorium on new high-energy cryptocurrency mining operations reviving concerns over the strain that large-scale mining can place on local electricity supplies.
The proposed land-use measure would halt approvals for new computing facilities consuming 300 kilowatts or more including cryptocurrency mining operations. The city held a public hearing on the proposal but Mayor Wendell Hughes had not approved the moratorium as of this writing. The council is due to consider the measure again in mid-September 2026.
The move echoes Plattsburgh’s earlier response to crypto mining.
In 2018, the city became one of the first U.S. jurisdictions to impose an outright Bitcoin mining moratorium after residents raised concerns about rising electricity costs. That restriction lasted 18 months.

EDITORIAL | Is Bitcoin Mining Robbing the World’s Poor of Cheap Electricity?

The latest proposal highlights a continuing challenge for Bitcoin miners:
Access to cheap and reliable electricity.

Mining operations require large amounts of power to run specialized computing equipment around the clock. As electricity costs rise and mining economics become more competitive, jurisdictions with limited power capacity are increasingly scrutinizing whether mining operations justify their impact on local energy markets.
The pressure has also contributed to a shift among some mining companies toward artificial intelligence and high-performance computing which can use similar power-intensive data-center infrastructure.
For crypto mining, however, Plattsburgh’s debate is another sign that electricity availability and cost remain among the industry’s biggest constraints and increasingly a regulatory issue as well.


CASE STUDY | This Bitcoin Mining Bet Shows Why Renewable Power Alone is Not a Viable Business Model




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VISA has said stablecoin-linked card programs on its network have grown to more than 160 with payment volume on those programs rising nearly 200% year-on-year.
Its stablecoin settlement volume has also surpassed a $20 billion annualized run rate representing more than 15x growth from a year earlier.
The numbers highlight how VISA is increasingly moving beyond experimenting with blockchain to incorporating on-chain activity into its core payments infrastructure.

“Stablecoins are not only changing how money moves, they’re creating opportunities to rethink the financial infrastructure that supports payments,” said Rubail Birwadker, Global Head of Growth Products and Partnerships, VISA.

VISA’s latest move is to combine VisaNet settlement data with on-chain lending infrastructure allowing stablecoin-linked card programs and fintechs to access working capital.
The company said more than $694 billion in stablecoin-denominated loans have been sent through on-chain lending protocols since 2020, according to its Onchain Analytics Dashboard.

INTRODUCING | Coinbase Launches Crypto-Backed Loans in the UK

VISA is already working with Credit Coop on a model that uses VISA settlement data and on-chain transaction records to assess credit performance and automate settlement financing. The model has supported more than $2.5 billion in cumulative financed settlement volume since 2023 with zero defaults across participating facilities. It has processed more than 3,000 borrowing events and 9,000 repayment events programmatically on-chain.
VISA views on-chain credit as a natural extension of its broader efforts to bridge traditional financial infrastructure with emerging digital asset technologies.


INTRODUCING | VISA Unveils Enterprise Stablecoin Platform for Minting, Moving, and Managing Stablecoins





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Circle Internet Group, Inc. (NYSE: CRCL), the global financial technology firm and issuer of USDC has announced it has signed a definitive agreement to acquire TazaPay, a Singapore-headquartered B2B cross-border payments infrastructure company focused on serving payment service providers and financial institutions.
The deal is expected to close in 2027, subject to customary closing conditions and receipt of regulatory approvals, including approval from the Monetary Authority of Singapore.

“Combining USDC with Tazapay’s world-class banking relationships, local payout rails, and institutional customer base will accelerate worldwide USDC adoption,” said Jeremy Allaire.

“Stablecoin settlement is becoming core infrastructure in the global economy, and combining USDC with Tazapay’s world-class banking relationships, local payout rails, and institutional customer base will accelerate worldwide USDC adoption,” said Jeremy Allaire, Co-Founder, CEO, and Chairman at Circle.
“Tazapay has been a design partner for Circle Payments Network since 2025 and we share a deep alignment. We are excited to bring the team in-house and work together towards accelerating Circle’s mission.”

The acquisition will accelerate Circle’s mission to build the infrastructure layer for global digital finance. TazaPay brings
over $25 billion of annualized payment volume,
60+ banking and fintech partners,
local payout rails covering over 100 markets,
adding scale to Circle’s payments infrastructure. Approximately 60% of Tazapay’s transaction volume already includes stablecoins.

“Tazapay brings deep payment infrastructure across APAC and emerging markets, where we see increasing demand for USDC-denominated transactions. This acquisition will increase Circle’s capability to originate and terminate payments globally, near-instant and 24/7, which is a meaningful step toward making USDC the default payment rail for cross-border commerce,” said Irfan Ganchi, Senior Vice President of Payments at Circle.
“Combined with Circle’s existing network, Tazapay extends our coverage to move money anywhere stablecoin payments are being adopted globally.”

“We built Tazapay to make payments faster, remove friction, and streamline dependency on banking rails that don’t operate at the speed of global commerce.
Circle has the dollar infrastructure in USDC and the regulatory standing to take what we’ve built further than we could alone.
That’s what makes this the right move and what we’re focused on delivering together,” said Rahul Shinghal, Co-Founder and CEO of Tazapay.

Tazapay customers can expect no disruption to their service, APIs, pricing, or support.


LIST | Here Are the 28 Leading African Fintechs Partnering with Circle in New Stablecoin Network




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Cronos says $120.4 million was affected in the Tectonic exploit, significantly more than the roughly $75 million initially estimated.
The blockchain network said it recovered $111.2 million, or about 92% of the affected funds, after validators rolled back nearly two hours of transaction history.
About $9.19 million, or 7.6% of the total, had left the Cronos network before it was halted and remains unrecovered.
The updated figure underscores the scale of the August 30 2026 exploit, which initially was estimated at $75 million.


CASE STUDY | Cronos Blockchain Halts After an Exploit on its Largest Lending Protocol





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Uzbekistan has launched a pilot project testing the use of the HUMO stablecoin for payments as the country expands its regulatory framework for digital assets.
The National Agency of Perspective Projects (NAPP) and the Central Bank will oversee the pilot which will test the
issuance,
circulation, and
redemption
of HUMO, with each token pegged 1:1 to the Uzbek Som.

STABLECOINS | Philippines Oldest Bank to Pilot Stablecoin Rail for Cross-Border Payments

HUMO will be backed by government securities and tested as a payment instrument for goods and services. More than 20 businesses are preparing to participate with banks and other companies also expected to join.
A separate area of the pilot will focus on integrating the banking, payment processing and blockchain infrastructure of project participants to enable settlements using the HUMO stable token.
HUMO Digital has been registered under Uzbekistan’s special regulatory regime for stablecoins while crypto infrastructure provider, Asterium, is participating as a project partner.
The pilot, which can run for up to 3 years, will also test the integration of banking, payment-processing, and blockchain infrastructure.
Upon completion of the project, the practical applicability of the model of a stable token backed by government securities will be assessed, the associated risks will be identified, and proposals will be developed to further improve approaches to regulating digital financial instruments in Uzbekistan.


STABLECOINS | South Korea’s Largest Bank Successfully Completes Local Stablecoin Pilot




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Switzerland has moved its Swiss Franc stablecoin project into a live testing phase bringing financial market operator, SIX, and payment app, TWINT, into the initiative.
Nine Swiss companies are now testing CHFD, a Swiss Franc-denominated stablecoin, in a controlled sandbox environment. The project is led by
UBS,
PostFinance,
Sygnum,
Raiffeisen,
Zürcher Kantonalbank,
BCV,
SIX,
TWINT and
Swiss Stablecoin AG.
The tests will examine whether programmable payments can reduce fraud on online marketplaces, improve access to event tickets, and make public-sector payments more efficient.
The project began in April 2026 with CHFD technically operating inside the sandbox since late June 2026. The testing phase is expected to run through the end of 2026 with participants assessing the potential benefits as well as the technical, operational, and regulatory requirements for a Swiss Franc stablecoin.
The move comes as banks and financial infrastructure providers globally increasingly explore stablecoins as a potential settlement and payments layer shifting the focus from crypto trading toward regulated financial infrastructure.


REGULATION | Here Are the 4 Firms Selected to Test Stablecoin Innovation in UK Regulatory Sandbox





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The Australian financial crime regulator, AUSTRAC, has cancelled, suspended or refused to renew the registrations of 45 remittance and virtual asset service providers over the past year tightening its oversight of businesses exposed to money-laundering and terrorism-financing risks.


AUSTRAC said the businesses were removed for reasons including
lacking the capacity to operate,
being dormant or inactive,
failing to provide designated services for extended periods,
insolvency,
holding inappropriate registrations, or
failing to notify the regulator of material changes.
The crackdown comes as Australia steps up scrutiny of high-risk payment channels.

REGULATION | The Latest Binance Penalty is ‘A Clear Warning to Entities Setting Up Shop in Australia,’ Says Regulator

“Businesses with cancelled registrations can no longer operate and where appropriate, we’ve referred individuals behind these businesses to law enforcement and regulatory partners locally and overseas,” said AUSTRAC CEO, Brendan Thomas.
“Financial crime operates across borders, and we work closely with our domestic and international partners to strengthen the financial system not just in Australia, but globally.”

According to the press release by AUSTRAC:
AUSTRAC’s focus on the payments, remittance and virtual asset sectors has continued through a range of regulatory actions in recent months, including the commencement of an investigation into Western Union and action to suspend Cryptolink’s crypto ATM network.

CRYPTO CRIME | Australia Suspends a Leading Crypto ATM Operator Over Compliance Failures

AUSTRAC has also launched an investigation into Western Union over concerns about its management of high-risk payment channels, customers and affiliates, while suspending crypto ATM operator, Cryptolink.

REGULATION | Australian Financial Regulator, AUSTRAC, Investigates Western Union Over Money-Laundering Controls

In one case, AUSTRAC worked with the National Anti-Scam Centre to cancel the registration of crypto business, GetCoins, after complaints and concerns over its ability to manage money-laundering risks. The regulator said the business was allegedly exploited by organised cryptocurrency investment scams.
Thomas said businesses whose registrations were cancelled could no longer operate and that, where appropriate, individuals behind them had been referred to law-enforcement and regulatory partners.

EXPERT OPINION | Crypto Regulation Focus Should Be on the Economic Function, Not the Delivery Technology – Australian Regulator

The actions highlight a broader shift toward tougher scrutiny of crypto and remittance businesses as regulators seek to prevent digital-asset and cross-border payment channels from being exploited for organised crime and financial fraud.

“Our message to industry is clear: understand and manage your risks and meet your reporting obligations, or you may not be able to continue operating,” Thomas said.

REGULATION | Australian Regulator Warns Unlicensed Crypto Firms Could Pay 10% of Annual Turnover for Non-Compliance




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French-listed bitcoin treasury firm, Capital B, said it bought 376 bitcoin for €25.3 million ($29.4 million), taking its total holdings to 3,521 BTC.
The purchase is the company’s largest bitcoin acquisition since September 2025 when it bought 551 BTC.
Capital B said the latest purchase was funded following about €30.1 million ($35 million) in capital raises, including a €28.7 million private placement backed by investors including Blockstream co-founder Adam Back and French asset manager TOBAM.
The company’s bitcoin holdings have now cost about €309.4 million ($359.3 million), giving it an average acquisition price of €87,878 ($102,058) per bitcoin.
Capital B’s latest BTC purchase puts it ahead of H100 Group, a Sweden-based bitcoin treasury firm, with 3, 506 Bitcoins.


In March 2026, H100 acquired two Nordic crypto companies, a deal that lifted its reserves to over 3,500 bitcoins nearly tripling its total holdings making it the largest publicly-listed treasury company in Europe at the time.
The transaction was structured as a bitcoin-for-bitcoin exchange, meaning ownership in the combined entity would be determined by contributed BTC rather than cash.

CASE STUDY | How This Health-Tech Wants to Become Europe’s Largest Bitcoin Treasury Firm

Prior to the acquisition, H100 was ranked number 44 on the Bitcoin treasury companies list worldwide and would go up to number 27 in the rankings after the acquisition.
The top 3 largest publicly traded Bitcoin holders in Europe as of this writing are:
Bitcoin Group SE – 3, 605 BTC
Capital B – 3, 521 BTC
H100 – 3, 506 BTC

CASE STUDY | The Financing Model that Fueled Rapid Expansion of Bitcoin Treasury Companies is Showing Signs of Strain




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South Africa’s Financial Sector Conduct Authority (FSCA) has barred Africa Bitcoin Corporation (ABC) CEO and two senior executives from providing financial products or services or holding key positions at financial institutions for 20 years.
The regulator’s decision affects
CEO, Warren Wheatley,
Chief Investment Officer Akshay Karan and
Head of Media and Investor Relations, Tatum Wheatley.
The executives were removed from operational and decision-making responsibilities at ABC following the debarments.

MILESTONE | Altvest Becomes First Publicly-Listed Firm in Africa to Add Bitcoin to Treasury Reserves

The FSCA has not publicly disclosed the reasons for the decisions which were communicated privately to the executives.

Wheatley and Karan have been placed on precautionary leave while Tatum Wheatley’s consulting services to the group have been suspended.
The three executives intend to seek reconsideration of the FSCA decisions and their suspension through the Financial Services Tribunal, ABC said in a statement. They have also resigned as directors of Altvest Credit Opportunities Fund, a wholly owned ABC subsidiary.


ABC has appointed Executive Director and Bitcoin Strategy Head, Stafford Masie, as interim CEO. Masie, a technology entrepreneur and former Google South Africa country manager, will oversee the group’s executive arrangements relating to the fund.
ABC, formerly AltVest Capital, was the first listed African company to adopt Bitcoin as a treasury reserve asset and currently holds 5.53 Bitcoin, valued at about 6.68 million Rand ($380,000), according to the latest known statistic.
ABC also provides financial services, growth capital, and loans to small and medium-sized businesses.


BITCOIN | Altvest, Africa’s First Publicly-Listed Firm to Add Bitcoin to Treasury Reserve, Rebrands to ‘Africa Bitcoin Corporation’




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Nearly $10 million in crypto assets is at risk of becoming unrecoverable after Silicon Network, an Ethereum layer-2 blockchain, began shutting down, highlighting the risks businesses and users face when deploying assets on smaller or less-established networks.
Silicon stopped accepting new bridge deposits on Sept. 2 and has given users until Dec. 31 2026 to withdraw their assets. After that, the network and its block explorer are expected to shut down, with assets left on the chain potentially impossible to recover.

In a statement, Silicon network said assets left on the chain will be unrecoverable:
“This network is a non-custodial service, meaning that the custody and withdrawal of assets are managed directly by each user. Once the service has been terminated, assets that have not been withdrawn cannot be recovered.”

Data from L2Beat showed about $9.75 million remained on Silicon, including roughly
$2.66 million in USDC,
$2.54 million in wrapped bitcoin,
$2.08 million in ether, and
$1.85 million in USDT.


The episode underscores a fundamental risk in the increasingly fragmented blockchain market:
Choosing a chain is not simply a question of transaction costs, speed or technical capability. It is also a bet on the network’s long-term viability, liquidity, infrastructure and ability to remain operational.

Assets issued or bridged onto a network can become difficult to move when liquidity dries up or the operators decide to shut the chain down. While assets bridged from Ethereum may have established routes back to the main network, tokens that depend on liquidity within the smaller chain can face a much more complicated exit.

CASE STUDY | How a Crypto Investor Lost $50 Million in a Single Transaction Due to Illiquidity in DeFi Markets

Silicon’s closure is particularly relevant as companies increasingly deploy stablecoins, tokenized assets, and financial applications across multiple layer-2 networks. A technically capable chain can still become a weak link if it lacks sufficient users, liquidity, infrastructure, or economic incentives to remain viable.
The Ethereum scaling market is already becoming concentrated around larger networks. Base and Arbitrum together hold about $24.7 billion, more than 80% of the roughly $30.5 billion locked across Ethereum networks tracked by L2Beat.

MILESTONE | Base Surpasses One Million Daily Active Addresses Outpacing the Next Several Ethereum Layer 2s Combined

For businesses building financial products on-chain, the lesson is clear:
Chain selection should be treated as a risk-management decision, not merely a technical one.

Liquidity depth,
bridge infrastructure,
validator and sequencer resilience,
developer activity,
exchange support,
governance,
exit mechanisms, and
the economic sustainability of the network
should all be assessed before significant assets or users are committed to a chain.
Silicon’s shutdown shows what can happen when that infrastructure disappears – the blockchain may stop being a technology choice and become an asset-recovery problem.
For users and institutions, diversification across established networks and maintaining credible exit routes may ultimately matter as much as the cost and speed of transactions.


REALITY CHECK | Millions of Crypto Tokens Are Vanishing as Liquidity Tightens, Say Analysts




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Liquid Network, a Bitcoin-based settlement network used by cryptocurrency exchanges, halted new transactions after about $320 million worth of bitcoin was withdrawn from its federation wallet in a security exploit.
Around 4,000 of the 4,200 bitcoin held in the wallet were taken by individuals describing themselves as ‘white-hat hackers’, according to Liquid Network.
The network, launched by Blockstream in 2018 and overseen by a federation of more than 80 exchanges, infrastructure firms, and asset managers said it was working to restore normal operations.
The incident did not involve a compromised private key. Instead, the funds were moved through SideSwap, an authorised platform used to facilitate transactions on Liquid.
Blockstream said the exploit was linked to a software bug in Elements, the open-source technology underpinning Liquid. SideSwap said it could not distinguish bitcoin created through the bug from legitimate funds and therefore treated the assets in the same way.
The incident highlights the security risks facing crypto infrastructure as exchanges increasingly rely on blockchain networks and settlement layers to move large amounts of digital assets.
Liquid has not said when transactions will resume or whether the withdrawn bitcoin will be returned.


CASE STUDY | Bitcoin Payment Infrastructure Hit by Exploit Targeting Lightning Nodes




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Demand for dollar-backed stablecoins can put downward pressure on local currencies when global exchanges allow investors to buy the tokens directly with fiat, according to a Bank of Korea study.
The study examined what happened after Binance introduced direct trading between local currencies, including the Brazilian real and Turkish lira, and dollar-pegged stablecoins such as USDT and USDC.
The researchers found that stablecoin premiums fell by 0.33 to 0.38 percentage points after Binance introduced fiat-stablecoin pairs while stronger demand for the tokens was associated with depreciation in local currencies against the dollar.

Brazil provided a clear example.

Investors can buy dollar stablecoins on Binance directly with Brazilian Reais, meaning rising demand can translate into actual dollar purchases. The study found that the Real depreciated 0.12% as stablecoin demand increased.

EXPERT ANALYSIS | ‘In Emerging Markets, High Penetration of USD-Linked Stablecoins in Particular, Weaken Monetary Transmission,’ Warns Moody’s Ratings

The mechanism is different in South Korea where investors cannot directly buy stablecoins with Won on Binance. Domestic traders largely exchange existing stablecoin holdings among themselves meaning increased demand is reflected in stablecoin prices rather than directly in the foreign exchange market.
That could change if South Korea allows greater participation by corporations and foreign investors in domestic crypto exchanges, the study said. Such changes could narrow price differences between domestic and overseas stablecoins while strengthening the link between crypto markets and foreign exchange rates.

“If the market structure changes, with wider participation by corporations and foreigners in domestic virtual asset exchanges, the link between the stablecoin market and the foreign exchange market could strengthen,” said Kim Ji-hyun, a manager on the Bank of Korea’s international finance research team.

STABLECOINS | Africa Sees Highest Stablecoin Conversion Spreads, January 2026 Data Shows

The researchers recommended that digital asset regulatory reforms be pursued alongside efforts to internationalize the Won and improve the structure of South Korea’s foreign exchange market.
The findings add to growing concerns among central banks about the potential impact of dollar-backed stablecoins on monetary policy and currency stability as their use expands globally.


STABLECOINS | South Africa’s Stablecoin Experience Offers a Policy Lesson for Emerging Markets, Says IMF




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Prediction market operator, Kalshi, recorded 15.4 million U.S. website visits in July 2026, up about 1,520% from fewer than 1 million visits in August 2025, according to Similarweb data.
U.S. users accounted for nearly 80% of Kalshi’s total traffic, up from 72.8% a year earlier.
Kalshi’s trading activity has also accelerated sharply. Monthly trading volume reached about $40 billion in August 2026, up roughly 4,500% from $874 million a year earlier.

MARKET ANALYSIS | This Prediction Markets Valuation Hits $40 Billion Leveraging Compliance Over Competitors

Overall, the prediction markets industry saw monthly notional volume rise to $50.7 billion from ~$2 billion YoY. Kalshi accounted for ~80% of the total with sports contracts accouting for 83% o Kalshi’s trading volume in July 2026.
In terms of jurisdictions:
Canada generated ~450K visits in July 2026, up from ~50K YoY
U.K traffic was ~300K, up from 31K


The surge comes as Kalshi faces growing legal challenges over whether its sports contracts should be regulated by the federal Commodity Futures Trading Commission or under state gambling laws.


REGULATION | Leading Prediction Markets Platform Losses Court Case Handing Power to States




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Global bond markets are coming under renewed pressure as rising government debt, persistent inflation, and increased borrowing by companies push yields higher and challenge investors’ appetite for long-term debt.
Government bond yields have climbed sharply across major economies, with
Japan’s 10-year yield reaching 3% for the first time since 1996, while
U.S., British, German and French borrowing costs have also moved to multi-year or multi-decade highs.
The moves reflect growing concern that governments are borrowing heavily at a time when investors are demanding higher returns to compensate for inflation and fiscal risks.
The United States is at the centre of those concerns, with federal debt exceeding $40 trillion.

MILESTONE | U.S National Debt Surpasses $40 Trillion for First Time

At the same time, a surge in corporate borrowing to finance artificial intelligence infrastructure is adding to the supply of debt competing for investor capital.

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Global corporate bond issuance has reached a record $4.9 trillion so far in 2026, up 14% from the same period last year, according to LSEG data cited by Reuters.
Five major U.S. technology companies
Alphabet (Google),
Amazon,
Meta,
Microsoft, and
Oracle
have issued about $220 billion in debt this year as they finance data centres and AI-related investments, more than twice last year’s total.

AI | AI Agents Should Be Treated as ‘Untrusted’ Systems, Say Google and Meta Researchers

Higher yields translate into higher borrowing costs across the economy, affecting governments, companies, and consumers through more expensive mortgages, loans, and corporate financing.

The pressure also complicates central-bank policy.

Rising energy prices and geopolitical tensions are adding to inflation risks while higher government borrowing costs make it harder for policymakers to support economies without worsening fiscal pressures.

GEOPOLITICS | U.S Attemps to Trade Oil Futures Would Be a ‘Biblical Disaster,’ Says Oil Industry Giant

For emerging markets, the risks can be greater. Higher yields in major economies can draw capital away from developing countries, increase the cost of dollar-denominated debt and put pressure on currencies already vulnerable to external shocks.
The bond-market moves therefore represent more than a shift in investor preferences. They signal a broader reassessment of the cost of government borrowing after years of exceptionally low interest rates and abundant liquidity.
With debt levels remaining high and governments facing growing spending demands, investors may increasingly demand higher yields before financing additional borrowing — putting fiscal discipline back at the centre of global markets.

DOLLARISATION | China Reportedly Urges Domestic Banks to Limit and Reduce Exposure to U.S Treasuries



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Southeast Asia’s blockchain sector has raised $680 million in equity funding so far in 2026, more than double the $319 million raised during all of 2025, as investors increasingly concentrate capital in established crypto companies and financial services, according to Tracxn data.
The rebound, however, is being driven by fewer deals. Just 25 funding rounds have been completed in 2026, down from 46 in 2025 and far below the 206 rounds recorded in 2022.
A $400 million Series D round for Crypto.com accounts for almost 60% of the 2026 total.
Other major deals include:
Edena Capital’s $100 million Series D and
Startale’s $50 million Series A.
Together, the three rounds represent about 81% of regional funding.

FUNDING | Leading Crypto Brokerage Infrastructure Provider Raises Over $100 Million to Expand On-Chain Stocks

Crypto financial services have attracted $498 million across 19 rounds, up 48.4% year-on-year.
Tokenization platforms followed with $114 million, while
decentralized application development platforms raised $77 million.

CASE STUDY | This Latest Funding Round Signals Where DeFi’s Next Growth Story May Come From

Funding remains below the region’s
$2.2 billion peak in 2022. It fell to
$386 million in 2023 before recovering to
$804 million in 2025
according to Tracxn.
The sector’s funding pipeline also shows increasing concentration. Of 3,957 blockchain companies tracked by Tracxn,
1,323 have received equity funding, but only
167 have reached Series A or later.
Just 50 have reached Series B,
14 Series C, and
4 Series D or beyond.

INSIGHTS | What This Funding Round, Led by the World’s Largest Exchange, Signals

Singapore remains the dominant funding hub accounting for 82.5% of the region’s $6.2 billion in cumulative blockchain funding and hosting 2,285 companies tracked by Tracxn. Jakarta follows with about 3% of regional funding.
The region has recorded
43 acquisitions and
4 IPOs, while producing
6 blockchain unicorns, including Sygnum, Bitkub, Sky Mavis, and Amber Group.
The figures point to a recovery in Southeast Asia’s crypto investment market but not a return to the broad-based funding boom of 2022. Instead, capital is increasingly flowing toward financial infrastructure, tokenization, and companies that have already reached scale.


CASE STUDY | This Asian Deal Signals Upcoming Market Demand at Scale for Stablecoin Infrastructure




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Hargreaves Lansdown, Britain’s largest retail investment platform, has begun offering eligible clients access to Bitcoin and Ether exchange-traded notes (ETNs), marking a significant shift for a firm that previously warned investors about cryptocurrency risks.
The platform has listed 9 crypto ETNs from issuers including
BlackRock’s iShares,
WisdomTree,
21Shares,
Invesco,
CoinShares and
Bitwise,
with fees ranging from zero to 0.35%.

CRYPTO MARKETS | August Was the Strongest Month for Bitcoin ETFs in 2026 So Far
A crypto ETN can give investors Bitcoin price exposure through a traditional securities account without requiring them to manage wallets or hold Bitcoin themselves. But the structure can vary significantly by jurisdiction, including whether the product is actually backed by the underlying crypto.
In other words,
an ETF generally gives you ownership of a pool of assets;
an ETN gives you a debt claim on an issuer whose value is tied to an underlying asset or index.

The move follows Britain’s Financial Conduct Authority lifting its 4-year ban on retail access to qualifying crypto ETNs in October 2025.
Hargreaves Lansdown, which serves more than 2 million clients and oversees over $200 billion, is limiting access to investors who meet additional eligibility and risk-assessment requirements.
The reversal highlights how crypto is increasingly moving from specialist exchanges into mainstream wealth-management platforms even as traditional firms continue to classify the products as high risk.


INSTITUTIONAL | Why Wall Street is Lowering the Barrier to Entry for Crypto ETFs




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Pons, a token-launch app operating on Robinhood Chain, generated about $5.95 million in fees in 24 hours, surpassing the fees generated by the blockchain itself, as speculative trading surged.
Nearly 25,000 tokens were launched through Pons on Sept. 2 2026 while trading volume reached about $544 million, according to DefiLlama data.
Robinhood Chain itself collected roughly $4 million in fees over the same period – about one-fifth of its total fees since launching in July 2026.


The figures highlight an unexpected dynamic for a network launched with tokenized stocks and real-world assets as flagship products:
Memecoins are currently driving a significant share of its activity and revenue.

For Robinhood, the bigger opportunity may be transaction volume rather than the value of the tokens being traded. Every trade running through the chain generates activity that can translate into fees while also creating revenue for Arbitrum through its infrastructure arrangement.
The question now is whether the memecoin frenzy can evolve into sustained on-chain activity or whether Robinhood Chain’s early growth is being driven primarily by speculative trading.


CASE STUDY | Robinhood Could Become Arbitrum’s Biggest Revenue Engine




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