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Bybit posted $1.5T trading volume in 2025 after recovering from the largest crypto hack.

Its market share dropped to 6% in March then rose steadily as liquidity support stayed active.

CoinGecko ranked Bybit second globally showing trust recovery after an exchange breach.

Bybit ranked second among centralized crypto exchanges in 2025 after recovering from a $1.5 billion hack, as trading volumes rebounded and market share steadily improved, according to CoinGecko data. The exchange processed $1.5 trillion in spot trading volume during the year and captured 8.1% of the market, research analyst Shaun Paul Lee said in a Thursday report. The recovery followed a February 2025 cyberattack, the largest crypto hack on record, which initially cut Bybit’s market share sharply before a gradual rebound through the rest of the year.

Bybit’s Recovery After the February Hack

The February attack targeted Bybit’s cold wallet infrastructure and resulted in the loss of $1.5 billion worth of Ether, according to details cited in the CoinGecko report. Investigators linked the breach to North Korean attackers, making the incident the largest known theft in the crypto sector to date.

In the weeks after the hack, Bybit’s market share dropped to 6% in March from 10% in February, reflecting immediate user caution and reduced trading activity. Still, the research said Bybit kept withdrawals open and honored all user transactions during the crisis, which helped stabilize activity.

Bybit CEO Ben Zhou also appeared publicly to address concerns and said the exchange held enough reserves to cover losses and planned to secure liquidity through external support. CoinGecko noted that these measures supported a slow recovery, allowing Bybit to regain trading volume and user confidence across 2025.

Market Position by December 2025

By December 2025, Bybit ranked as the second-largest centralized exchange by spot trading volume, according to CoinGecko. The exchange recorded $90.0 billion in spot volume during the month and held a 9.5% market share.

That figure marked a 16.7% decline from November, when Bybit posted $108.1 billion in volume, reflecting weaker overall market conditions. Despite the monthly drop, CoinGecko said Bybit maintained its second-place position for the year overall.

Shaun Paul Lee wrote that Bybit “clawed its way back to the top” and “slowly gained back its dominance throughout 2025.” The data positioned Bybit behind Binance but ahead of other major competitors in total annual activity.

Exchange Competition and Industry Context

Binance remained the largest centralized exchange in December 2025, holding 38.3% of total spot trading volume. Its trading volume fell from $609.0 billion in November to $361.8 billion in December, a 40.6% decline tied to broader market weakness. The data attributed the downturn to bearish sentiment following a major liquidation event on October 10.

For the full year, Binance processed $7.3 trillion in volume and controlled 39.2% of the top ten exchanges’ total activity, which reached $18.7 trillion. However, Binance’s annual volume slipped 0.5% year on year, showing limited growth despite its market leadership.

MEXC ranked third in December with $86.0 billion in spot volume and a 9.1% market share, CoinGecko said. It also recorded the fastest growth in 2025, with trading volume rising 90.9% year on year to $1.5 trillion, up from $766.7 billion in 2024.

Related: Circle and Bybit Advance Global Stablecoin Adoption With USDC

CoinGecko linked MEXC’s growth to its zero-fee spot trading policy, which attracted high-frequency traders and retail users. Overall, six of the top ten exchanges saw volume growth in 2025, while total top ten trading volume rose 7.6% for the year.

Immunefi CEO Mitchell Amador said that nearly 80% of hacked projects never fully recover due to operational breakdowns and lost trust. Against that backdrop, the data raises a key question: can crisis response and liquidity management determine which exchanges survive major security failures?

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Senate Agriculture Committee advanced a crypto market structure bill on a 12–11 party-line vote.

The bill would expand CFTC authority over digital commodities and spot crypto markets.

Senate Banking Committee approval is still required before the measure reaches the full Senate.

A closely divided vote in Washington marked a turning point for U.S. cryptocurrency regulation, as lawmakers moved a long-debated market structure proposal forward for the first time. The development signals growing pressure on Congress to establish clear rules for digital assets amid years of regulatory overlap, court battles, and industry uncertainty.

BREAKING: The Senate Agriculture Committee approves its portion of the digital asset market structure bill, part of the Clarity Act, on a 12–11 party-line vote.

The measure now moves forward as lawmakers work toward final passage. pic.twitter.com/SQ7EpZDpX5

— Bitcoin.com News (@BitcoinNews) January 29, 2026

According to reports, the Senate Agriculture Committee approved the Digital Commodity Intermediaries Act on a 12–11 party-line vote, with Republicans in favor and Democrats opposed. The measure would expand the authority of the Commodity Futures Trading Commission over digital commodities and spot crypto markets. While the margin was narrow, the outcome was historic: no crypto market structure bill had previously cleared a Senate committee.

A First Step Toward Defining Crypto Oversight

The bill aims to resolve long-standing jurisdictional uncertainty between the CFTC and the Securities and Exchange Commission. Under the proposal, digital assets that meet the definition of “digital commodities” would primarily fall under CFTC supervision rather than securities law.

As a result, trading platforms dealing in those assets would need to register with the agency and follow requirements covering disclosures, customer protections, and market integrity. Supporters argue the framework mirrors oversight already used in traditional commodities markets while adapting it to blockchain-based assets.

Most acknowledge that clearer lines of authority would reduce compliance confusion and provide more consistent enforcement across the industry. According to committee Republicans, the absence of a defined structure has allowed misconduct to persist while pushing legitimate innovation outside the United States.

Committee Chair John Boozman said during the markup that the vote reflects recognition that existing financial laws no longer fit modern digital markets. He argued that clearer guardrails could protect consumers while supporting innovation, pointing to concerns such as fraud linked to crypto ATMs that lawmakers say require more focused oversight.

Democratic Opposition and Ethics Concerns

On the other hand, Democrats on the panel opposed the legislation, citing concerns about ethics standards and investor protection. Several lawmakers argued the bill does not sufficiently address conflicts of interest involving public officials or strengthen safeguards against market manipulation.

They also warned that shifting expanded responsibilities to the CFTC could strain an agency historically focused on derivatives rather than retail-facing markets. Cory Booker said Democratic objections centered on what he described as inadequate ethics provisions, including the absence of restrictions on public officials’ involvement in the crypto sector.

As a result, Democrats proposed amendments that would have barred elected officials, including the president, from engaging in digital asset activities and addressed exposure to foreign adversaries. However, none of those amendments were adopted, with Boozman stating that such matters fall outside the committee’s jurisdiction.

Despite the partisan divide, some Democrats had previously expressed optimism that a market structure bill could advance. Kirsten Gillibrand had earlier said she was confident the committee would move forward, underscoring the complex political balance surrounding crypto legislation.

Related: UAE Central Bank Approves First US Dollar Stablecoin

What Happens Next

Notably, the Agriculture Committee’s vote does not send the bill directly to the floor. Instead, the Senate Banking Committee must still consider its version of a broader market structure package, often referred to as the CLARITY Act.

That package includes provisions involving the SEC, stablecoin oversight, and additional consumer protections. A scheduled Banking Committee vote earlier this month was postponed after industry opposition, including from Coinbase, and a new date has not been announced.

Only if both committees approve their respective sections can lawmakers reconcile the measures and bring a unified bill before the full chamber. Observers note that unresolved issues, such as stablecoin yield rules, the role of banks in crypto markets, and oversight of decentralized finance, remain obstacles.

Still, the narrow vote marks a significant procedural milestone. It reflects a shift from years of stalled debate toward concrete legislative action, even as sharp divisions persist over how digital asset markets should be governed.

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Gold sees a record $5.5T intraday swing as volatility jumps beyond 2008 crisis levels.

Crypto drops sharply with $1.71B in liquidations as Bitcoin falls briefly below $82K.

ETF outflows and Fed policy shifts deepen market stress before prices stabilize overnight.

Global markets absorbed one of their most jarring sessions in recent memory on January 29, 2026, as a wave of volatility tore through assets usually seen as anchors in uncertain periods. Gold led the disruption with a surge to new highs before a sudden air pocket in liquidity sent prices tumbling into the $5,100–$5,200 range.

The drop erased more than $3 trillion in value in under an hour. However, by the close, the metal had clawed back roughly $2.3 trillion, producing a swing so large that even veteran analysts struggled to place it in historical context. For many traders, the episode felt like a collision of profit-taking, tense geopolitics, and a thinning order book at precisely the wrong moment.

Silver, which often tracks the broader metals mood, echoed the chaos with a slide from $121 to $106 before bouncing back toward $117. Regardless, markets eventually steadied early the next morning, though the atmosphere remained uneasy.

A Reversal Without Modern Precedent

Analysts at The Kobeissi Letter, who track daily flows and cross-asset stress points, described the move in gold as one of the sharpest intraday reversals they had ever recorded. Their breakdown showed a $3.2 trillion evaporation between 9:30 and 10:25 a.m. ET, roughly $58 billion a minute, followed by an equally abrupt recovery.

Source: X

While plenty of dramatic sessions occupy market lore, this one pushed volatility readings past levels seen during the 2008 crisis. That comparison underscored the intensity of positioning in assets normally considered a haven during geopolitical flare-ups.

Meanwhile, Silver provided little relief for investors seeking a calmer read on sentiment. Its wide arc through the session, swinging more than $15 at the lows, reinforced the feeling that liquidity was simply too thin to absorb heavy orders without causing dislocation.

Crypto Liquidations Amplify the Shock

The disruption didn’t stay confined to metals. Stress spilled quickly into digital assets, where leverage tends to act as an accelerant. More than $1.71 billion in long positions across the crypto market were wiped out as automated liquidations kicked in.

Source: CoinGlass

Bitcoin, which had been attempting to hold higher ranges earlier in the week, broke briefly below $82K and liquidated about $786 million in value during peak selling pressure. As a result, board-wide declines appeared on market heat maps.

Bitcoin went down more than 7% on the day, while Ethereum slipped nearly 9%. Analysts reviewing the tape later noted that little of the move stemmed from token-specific developments. The selling was largely structural: too much leverage meeting too little liquidity at once.

Defensive Positioning and Policy Headwinds

Fundamentally, the tone among institutional investors has turned noticeably more cautious. Spot Bitcoin ETFs saw roughly $1.08 billion in net outflows over the past five sessions. While not a panic signal, it hinted at fatigue after weeks of elevated volatility.

Source: SoSoValue

With forced liquidations still echoing through the system, the absence of steady inflows left the market to fend for itself. Policy developments added another complication. The Federal Reserve’s choice to pause rate cuts removed the liquidity narrative that had supported risk appetite across several asset classes.

Meanwhile, geopolitical unease, particularly renewed U.S.–Iran tension, fed into a defensive tilt. Traders were also watching speculation that former Fed Governor Kevin Warsh, known for a more hawkish stance, could emerge as a candidate for Fed Chair.

Related: WLD Extends Rally With 15% Jump as OpenAI Explores Proof of Personhood

Long-Term Outlook Remains Intact

Despite the turbulence, long-term views on gold remain largely unchanged among major banks. JPMorgan reiterated its expectation that prices could eventually push beyond $8,000, citing persistent inflation pressures. By early January 30, gold had drifted back toward $5,100, silver hovered near $106, and Bitcoin steadied above $82K.

Market analysts agreed on at least one point: both precious metals and crypto have entered a stretch where erratic intraday swings may become more common, shaped less by narratives and more by how liquidity reacts under stress.

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Seized crypto now supports a state reserve alongside gold and foreign currency holdings.

Law enforcement seizures now feed directly into national crypto reserves framework.

Central bank funds gain cryptocurrency exposure through hedge funds and venture capital.

Kazakhstan’s central bank investment arm has confirmed plans to strengthen a new national crypto reserve using digital assets seized from criminal cases, alongside gold and foreign currency holdings. The initiative places enforcement outcomes directly into the country’s reserve strategy. The fund already includes $350 million in earmarked foreign currency and gold. Authorities say the structure reflects tighter state control over crypto exposure as Kazakhstan reshapes its digital asset policy.

The plan emerges as the country rebuilds its crypto framework after the 2022 energy crisis, which triggered unrest and forced a crackdown on large-scale Bitcoin mining. Officials now seek controlled participation rather than unchecked growth. The reserve strategy links regulation, policing, and financial management under a single institutional model. Can enforcement-driven accumulation reshape how states manage digital assets?

Reserve Structure Anchored in Enforcement Assets

The National Investment Corporation, the investment subsidiary of the National Bank of Kazakhstan, said it will use cryptocurrencies seized by law enforcement agencies to expand the reserve. The Russian-language outlet QAMS QazTrading first reported the plan.

NIC head Timur Suleimenov told the media on January 28 that the fund already holds $350 million in foreign currency and gold. The assets form the initial base of the reserve. Authorities plan to layer seized crypto onto that foundation.

The NIC has opened a dedicated account for crypto-related investments at Kazakhstan’s Central Depository. This step formalizes custody and reporting. It also places digital assets under the same oversight framework used for traditional reserves.

Investment Channels and Fund Management

The NIC said it does not plan to buy or hold cryptocurrencies directly. Instead, it will gain exposure through hedge funds that manage crypto purchases. Officials confirmed that five such funds sit on a shortlist.

The corporation has not disclosed the names of the hedge funds. Suleimenov said the approach allows the state to avoid direct trading while maintaining exposure. The structure also aligns with institutional risk controls.

Beyond hedge funds, the NIC plans to invest in crypto-focused venture capital funds. This widens the reserve’s reach across the digital asset sector. The strategy keeps ownership indirect while expanding participation.

Crackdown Fuels Reserve Growth

Kazakhstan’s President Kassym-Jomart Tokayev said the central bank may already control up to $5 million in crypto. He shared the figure during a recent address. The assets stem from enforcement actions.

Police have shut down 130 illegal crypto exchanges. Tokayev said those platforms generated about $124 million in combined revenue. Investigators also seized assets worth more than $5 million, though officials did not specify their form.

“Money laundering and the illegal withdrawal of money through underground cryptocurrency operations have become a serious problem,” Tokayev said. He added that advertising for cash-for-crypto exchanges continues on social media. Tokayev told the Financial Monitoring Agency that illegal capital outflows threaten economic security and ordered proposals to strengthen enforcement.

Related: Kazakhstan Sets Central Bank Control Over Crypto Trading

The reserve model differs from earlier national crypto strategies built on open market purchases or public funds. In Kazakhstan’s case, confiscated assets feed directly into state reserves. The approach converts regulatory action into a standing financial resource while keeping digital assets under sovereign oversight.

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CBUAE approval makes USDU the first central bank-registered US dollar stablecoin.

USDU holds one-to-one dollar reserves in UAE bank accounts in an onshore framework.

Payment token rules allow institutions to settle digital assets using USDU legally today.

The Central Bank of the United Arab Emirates has approved the country’s first USD-backed stablecoin under its Payment Token Services Regulation. The approval allows USDU to operate within a central-bank-regulated payments framework. The decision positions the UAE among the first jurisdictions to authorize a regulated digital dollar for payments.

According to a Thursday press release, the approval grants formal recognition to USDU as a Registered Foreign Payment Token. As a result, regulated institutions can now use a compliant USD stablecoin under existing payment rules.  The framework governs how digital payment tokens operate within the national financial system.

The regulatory move places the UAE ahead of the United States, the European Union, and much of Asia. Unlike other regions, the UAE now hosts a live USD stablecoin under central bank oversight. This step marks a structural change in how digital dollars integrate with regulated payments.

Universal Digital Operates USDU Under Dual Oversight

The issuance and management of USDU are handled by Universal Digital. The firm operates under the supervision of the Financial Services Regulatory Authority of the Abu Dhabi Global Market. Universal also holds registration with the UAE central bank for payment token activities.

This dual oversight framework governs reserve custody, disclosures, governance, and operational controls. Universal holds permission to issue a fiat-referenced token under ADGM rules. Simultaneously, the central bank registration allows payment token use across regulated workflows.

Universal launches USDU – the UAE’s first Central Bank-registered USD stablecoin.

Issued by an FSRA-regulated entity in @ADGlobalMarket, USDU is supported by banking partners @EmiratesNBD_AE , @MashreqTweets, and @almaryahbank with global distribution via @aquanow, and alignment… pic.twitter.com/LisFKmBMxd

— Universal (@Universal_USDU) January 29, 2026

Juha Viitala, senior executive officer of Universal, said the registration creates clarity for institutions. “USDU sets a new benchmark for regulated digital value,” Viitala stated in the release. He added that central bank registration provides institutions with clearer compliance pathways.

Reserve Structure and Institutional Use Cases

Reserves backing USDU are held on a one-to-one basis with U.S. dollars. The funds sit in safeguarded onshore accounts at Emirates NBD and Mashreq. Mbank acts as a supporting banking partner for the reserve structure.

Viitala said this structure matters for regulated entities operating in the UAE. Banks, brokers, and licensed venues can now integrate a compliant USD token. They can also align settlement, reporting, and compliance processes without structural changes.

Under the Payment Token Services Regulation, digital asset payments must use fiat or registered payment tokens. That rule also applies to digital asset derivatives settled within the UAE. USDU currently stands as the only USD stablecoin meeting those requirements.

Why does regulatory registration matter when global stablecoins already circulate in UAE markets?

Related: Circle Advances UAE Expansion With ADGM License, New MEA Head

Distribution, Blockchain Infrastructure, and Compliance Scope

While UAE traders widely use global stablecoins like Tether’s USDt, they lack central bank registration. As a result, they do not qualify under the UAE payment-token regime. Viitala said USDU fills that regulatory gap for compliant institutional activity.

USDU operates as an ERC-20 token on the Ethereum blockchain. That structure supports interoperability with existing digital finance infrastructure. It also allows integration with established blockchain-based systems.

Universal appointed Aquanow as a global distribution partner. Aquanow operates as a digital asset infrastructure provider regulated under Dubai’s VARA. The partnership supports institutional access to USDU outside the UAE where permitted.

Mashreq’s Group Head of Corporate and Investment Banking, Joel Van Dusen, commented on the launch. He said growing institutional demand favors regulated digital-value instruments. He added that USDU supports the market’s continued maturation.

A KuCoin report stated that the approval places the UAE among the first major jurisdictions to integrate a USD stablecoin into a central-bank-regulated payments framework.

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UK lawmakers begin a stablecoin inquiry as regulation moves closer to full rollout.

The review compares UK stablecoin growth with the United States and the European Union.

Evidence is expected to guide how digital money fits into the UK payment system.

The House of Lords Financial Services Regulation Committee has launched a formal inquiry into stablecoins as the UK prepares a new regulatory framework for digital money. Lawmakers will examine market growth usage patterns and regulatory risks while inviting written evidence submissions by 11 March 2026. The review sits alongside active policy work by regulators and comes as stablecoins move closer to mainstream payment use. 

The committee said it will assess how the global stablecoin market has developed since 2014. It will compare the UK market with those in the United States and the European Union. It will also examine the projected growth of sterling-denominated stablecoins. The inquiry seeks evidence on who uses stablecoins and for what purposes.

According to the committee chair, “We have launched this inquiry to assess the opportunities and risks that the growth of stablecoins may present for the UK financial services sector and the wider economy.” Baroness Noakes said the inquiry will also test whether proposed rules provide proportionate responses to market developments.

Scope Covers Markets, Usage, and Global Lessons

The inquiry will map how stablecoins have evolved globally over the past decade. It will consider whether the UK remains competitive as other regions push ahead with clearer frameworks.

At the same time, lawmakers will examine how the UK compares with the US and EU in market size, adoption, and regulatory design. Another core focus involves sterling-denominated stablecoins and their growth potential. The committee will examine how these tokens function in payment trading and other financial uses.

It will also gather evidence on which users rely on stablecoins and why. Alongside usage trends, the inquiry will assess risks and opportunities linked to stablecoin adoption. This includes financial stability concerns, consumer protection, and market resilience. The committee will also study regulatory approaches in other jurisdictions.

Lawmakers want to identify lessons that could inform the UK framework as adoption grows. The inquiry will then test whether the UK should apply stricter controls or retain regulatory flexibility as digital money evolves.

Regulatory Context and Market Impact

The investigation supports the current research efforts of the Bank of England and the Financial Conduct Authority. The two regulators are creating stablecoin regulations that will apply to digital currencies that are expected to achieve widespread adoption for payment purposes.

The Bank of England has launched a consultation on systemic stablecoins. The tokens pose financial stability risks because they can be used for widespread adoption. The proposed framework aims to ensure stablecoins remain properly backed and operationally resilient.

It also clarifies how issuers would fall under joint supervision by the Bank and the FCA. The bank has proposed temporary holding limits of £20,000 for individuals and £10 million for businesses. It plans to finalize the framework by year-end.

Related: Parliament Committees Urge UK to Block Crypto Political Funding

The Bank also intends to extend the digital securities sandbox to test wholesale settlement using regulated stablecoins. At present, stablecoins such as USDC and USDT, used mainly for crypto trading, remain outside UK payment regulation. That status will likely change under the new regime, with full implementation targeted for October 2027.

UK Weighs Single Regulator Model as Stablecoins Mature

Industry responses remain mixed, with some firms backing stronger consumer protections while others warn of slower innovation. This centralized UK model contrasts with the United States approach under the proposed CLARITY Act. That bill would divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, including payment-related stablecoins.

For UK lawmakers, the inquiry raises one pivotal question: can a single-regulator structure balance innovation and financial stability as stablecoins begin to resemble mainstream payment tools? Written submissions remain open until 11 March 2026. Afterward, the committee will take oral evidence and publish findings that could shape how regulators finalize the UK stablecoin framework.

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Venus plunged over 30% in minutes, breaking its range and triggering forced liquidations.

A whale looping 532,000 XVS was liquidated, with losses estimated near $1.09 million.

XVS remains fragile as health factors stay near liquidation thresholds post-crash.

Venus (XVS) recorded a sharp price shock on January 29, 2025, when the governance token suffered a flash crash on Venus Protocol. Around 8:05 a.m. UTC, the price of Venus, XVS fell more than 30% in about ten minutes. The flash crash drew attention to a widening gap between Venus Protocol’s on-chain activity and the market valuation of its governance token.

Before the drop, Venus, XVS traded near $4.40 in a relatively stable band. Selling pressure increased quickly and pushed the token down to an intraday low of $3.12. As of press time, XVS is trading at $3.72, down by 24% over the past day.

Source: TradingView

Whale Venus, XVS Loop Position Hit With $1.09M Liquidation

On-chain analyst EmberCN reported details of one large address affected by the decline. The report stated that a whale who looped on Venus to buy about 532,000 tokens worth roughly $2.81 million was liquidated during the flash crash. 

According to EmberCN, the address built this exposure through a looping strategy. The trader deposited Venus, XVS on Venus Protocol, borrowed USDT, and used the borrowed funds to purchase additional Venus XVS. In total, the account borrowed about 1.4 million USDT and used that debt to accumulate the 532,000-token position.

XVS 一天时间闪崩 40% ($5.3→$3.1)。
一个前天才在 Venus 上通过循环贷买入 53.2 万枚 $XVS ($281 万) 的鲸鱼，今天在 1 小时前的闪崩下跌中就被清算了 28.7 万枚 XVS ($93 万)，亏损高达 $109 万…

◎前天他才在 Venus 上抵押 XVS 借出 USDT 并继续购买 XVS，一共是借了 140 万 USDT 买入 53.2… pic.twitter.com/4HSFlUHu7N

— 余烬 (@EmberCN) January 29, 2026

Each loop increased both the size of the XVS holding and the outstanding USDT liability. This structure raised the account’s sensitivity to downward price movements in the governance token. Once the market turned lower, the collateral value fell against a fixed debt level.

EmberCN noted that the broader move in XVS ran from about $5.30 to near $3.10 over the one-day period. That drawdown pushed the address beyond its liquidation threshold on Venus Protocol. During the flash crash phase, 287,000 Venus XVS were liquidated to repay approximately $930,000 USDT, with the reported liquidation price near $3.23.

Related: Major U.S. Banks Expand Bitcoin Trading and Custody Market

The analyst estimated that the whale’s total loss on the trade could reach about $1.09 million. That figure reflected the gap between the cost of acquiring Venus, XVS and the value after liquidation events. It also included the impact of forced selling at lower prices.

XVS Whale Position Remains at Risk After Flash Crash

After the liquidation cycle, the remaining position still showed elevated risk. EmberCN reported that the health factor for the XVS exposure stood near 1.07 on the protocol. If the token price were to fall below about $3.20, the account would face further liquidations under existing collateral rules.

Data from analytics platform CoinGlass described the wider impact on traders. CoinGlass recorded total liquidations of about $379,580 linked to the XVS move. Long positions accounted for roughly $338,970 of that sum, while short positions saw around $40,610 in liquidations.

Source: CoinGlass

Venus Protocol operates on the BNB Chain as an algorithmic money market. Users could supply assets and borrow against posted collateral. The Venus XVS token is used for governance and for fee distribution inside the protocol, linking its price to activity and collateral conditions on the platform.

The XVS flash crash underscored ongoing challenges for DeFi governance tokens. While Venus Protocol maintains on-chain utility, token valuation remains sensitive to leverage and market risk appetite. The event highlighted how governance tokens could trade independently of protocol activity during periods of reduced demand for DeFi risk.

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Gold hits record highs as investors rotate into safety amid global macro uncertainty.

Gold adds value rivaling Bitcoin’s market cap as crypto weakens on rising volatility.

Short-term risk aversion dominates markets while Bitcoin struggles to fully recover.

Gold surged to a new all-time high as global markets showed clear signs of rising risk-off sentiment. The precious metal added roughly $1.65 trillion in market value within a single day. At the same time, Bitcoin and broader crypto markets declined, reflecting a short-term shift in liquidity.

Gold’s spot price climbed to $5,570.7 per ounce over the last 24 hours. The move pushed gold’s total market capitalization above $37.5 trillion. Market data showed the daily increase rivaled Bitcoin’s entire market value. The rally marks as one of the strongest single-day moves in gold’s history.

Gold Rally Signals Risk-Off Rotation

Geopolitical risks and economic uncertainty continued to rise prompting investors to enhance exposure to gold. Capital allocation decisions were also affected by sticky inflation as well as changes in interest rate expectations. These factors promoted portfolio changes of volatile assets to defensive ones.

The rally extended a broader multi-month trend in precious metals. Market participants often associate this trend with concerns over currency debasement. Higher government debt and loose fiscal policies reinforced those fears. As a result, gold attracted steady inflows from both institutions and retail investors.

Bitcoin, however, was not able to sustain the upward trend in the same period. The cryptocurrency fell due to the traders decreasing speculative positions. Broader crypto markets recorded increased liquidations during the pullback. These liquidations implied leveraged positions came under pressure on increasing volatility.

Bitcoin’s decline contrasted sharply with gold’s strong performance. Some investors previously expected Bitcoin to mirror gold during uncertain periods. However, recent price action showed Bitcoin remains sensitive to macro liquidity cycles. Short-term flows moved away from crypto toward traditional defensive assets.

Bitcoin Weakens as Sentiment Diverges

Bitcoin’s recent weakness followed an earlier market crash in October. That event wiped out more than $19 billion in leveraged crypto positions. Since then, Bitcoin has struggled to regain sustained upward momentum. Traders adopted a more cautious approach as volatility remained elevated.

The divergence becomes clearer over longer timeframes. Over the past five years, gold rose roughly 173 percent. Bitcoin gained about 164% over the same period. This performance gap challenged the idea that both assets move in tandem.

Sentiment indicators also reflected the growing divide. The Crypto Fear and Greed Index currently stands at 26. That reading places the crypto market firmly in fear territory. In contrast, gold sentiment reached extreme levels of optimism.

Source: Alternative

JM Bullion’s Fear and Greed Index for gold reached 99. The reading signals intense bullish sentiment among gold investors. Market watchers noted the sharp contrast between the two asset classes. The difference highlights changing investor priorities during uncertain conditions.

Related: BTC Crash Triggers $150B Crypto Wipeout as Gold Hits Record

Despite the short-term weakness, institutional confidence in Bitcoin remains. A recent Coinbase survey showed strong long-term conviction among institutions. 71% of surveyed investors viewed Bitcoin as undervalued. That view applied when Bitcoin trades between $85,000 and $95,000.

Also, approximately 80% indicated a desire to hold or purchase more after declines. Those reactions indicate that long-term positioning is not lost amid volatility. However, near-term liquidity conditions continue to favor safer assets. Gold currently benefits most from this defensive market stance.

For now, the rally in gold sends a clear signal across global markets. Caution dominates as investors brace for potential economic and policy shocks. Markets continue to adjust as uncertainty shapes capital flows.

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UAE central bank approves first USD-backed stablecoin under payment token rules framework.

USDU operates live with 1:1 dollar reserves held at Emirates NBD and Mashreq banks.

Approval makes USDU the only USD stablecoin allowed for digital asset settlement in UAE.

The UAE central bank approved the country’s first USD-backed stablecoin. The Central Bank of the United Arab Emirates cleared USDU under its Payment Token Services Regulation, confirming operational status. The approval involved Universal Digital, UAE banks and Abu Dhabi Global Market oversight, establishing a compliant dollar settlement token.

Central Bank Approval Under the PTSR Framework

The Central Bank of the United Arab Emirates approved USDU under the Payment Token Services Regulation, according to a Thursday press release. Notably, the framework governs payment token issuance, custody, and settlement within the UAE’s payments system. The approval allows a USD-pegged token to operate within a central bank payments regime.

Universal Digital issues and manages USDU, operating under the Financial Services Regulatory Authority of Abu Dhabi Global Market. However, the approval also registers Universal with the central bank for payment-token activities. This dual status makes Universal the UAE’s first registered Foreign Payment Token Issuer.

The press release stated that USDU now operates live under the central bank’s payments oversight. Consequently, the UAE becomes the first jurisdiction to host a USD stablecoin within such a regime. The release said this places the UAE ahead of the United States, the European Union, and much of Asia.

Juha Viitala, Universal’s senior executive officer, confirmed the registration status following approval. He said the designation provides institutions clarity under existing rules. Notably, the approval establishes a compliant framework rather than a pilot or sandbox arrangement.

Reserve Structure, Banks, and Regulatory Oversight

USDU maintains full 1:1 backing with U.S. dollars held in safeguarded onshore accounts. Emirates NBD and Mashreq provide reserve custody, while Mbank serves as a strategic banking partner. However, Universal remains responsible for meeting all issuer obligations.

The stablecoin issues as an ERC-20 token on Ethereum and targets institutional and professional use. According to Universal, a global accounting firm provides monthly independent reserve attestations. These attestations verify dollar balances supporting circulating tokens.

Universal operates under ADGM’s FSRA with permission to issue a fiat-referenced token. At the same time, the CBUAE registration governs payment-token activities nationwide. This structure imposed stricter governance and disclosure standards.

Under the PTSR, digital asset payments in the UAE may occur only in fiat or registered foreign payment tokens. Therefore, USDU currently stands as the only USD stablecoin meeting those requirements. This status applies to digital assets and derivatives settlement within the country.

Mashreq’s Group Head of Corporate and Investment Banking, Joel Van Dusen, addressed institutional demand. He said regulated digital-value instruments continue attracting interest from banks and market participants. However, his remarks focused on market conditions rather than future projections.

Related: USDT Gains Formal Recognition Under ADGM Framework

Distribution, Usage Limits, and Market Context

Universal appointed Aquanow as a global distribution partner to support institutional access outside the UAE, where permitted. Aquanow operates under Dubai’s Virtual Assets Regulatory Authority. The partnership supports on-ramps, off-ramps, and settlement infrastructure.

Within the UAE, USDU supports domestic settlement for digital assets and derivatives. However, the token cannot serve general retail payments on the mainland. Dirham-denominated instruments remain standard for everyday transactions.

Universal also works with AE Coin, a dirham-backed stablecoin licensed by the central bank. The firms plan future conversion between USDU and AE Coin for domestic settlement. This aligns dollar and dirham payment tokens within the same regulatory perimeter.

The approval arrives amid uncertainty in U.S. crypto legislation. Lawmakers continue debating provisions in the CLARITY Act affecting stablecoins and decentralized finance. However, the UAE approval occurred independently of those developments.

PTSR included a transition period for compliance. Among USD stablecoins, USDU became the first to complete registration. This confirmation underscores its current regulatory standing rather than broader market impact.

The UAE central bank approved USDU under its payment token rules. The approval covers issuance, reserves, banking custody, and distribution within defined limits. These elements establish a regulated USD stablecoin operating inside the UAE payments framework.

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Crypto faces long-term risk if gambling activity overtakes useful blockchain development.

Buterin says infrastructure growth means little without applications people use daily.

Developers hold responsibility for shifting crypto toward real economic and social value.

Ethereum co-founder Vitalik Buterin has warned that the cryptocurrency industry faces collapse if speculation continues to dominate over real-world use. In comments circulating across the crypto community, Buterin said excessive focus on gambling-style activity threatens the sector’s long-term survival. The remarks emerged as markets remain volatile and public scrutiny of digital assets continues to intensify worldwide.

The comments have renewed debate over crypto’s long-term direction during a period of heightened regulatory and investor attention. Buterin framed the issue as an existential challenge rather than a short-term market concern. “If people are only gambling,” Buterin said, “this industry will die.” His statement focused on the purpose of blockchain technology rather than token prices or trading cycles. The warning reflects concerns he has raised repeatedly over several years.

Speculation Versus Utility 

Buterin said crypto risks becoming a system driven mainly by short-term profit rather than meaningful innovation. He warned that gambling-focused activity could crowd out the development of tools that deliver practical value.

WARNING: Vitalik says if crypto keeps centering on gambling with no real-world use, the industry will die fast. pic.twitter.com/LXUprHgS8A

— Crypto Rover (@cryptorover) January 28, 2026

According to his remarks, this imbalance could weaken user trust and long-term engagement. Cryptocurrency markets have expanded rapidly since Bitcoin’s launch more than a decade ago.

Digital assets now trade globally, with trillions of dollars moving through exchanges during peak cycles. The critics claim that most of the volume shows speculative activity instead of ongoing usage.

The market mostly concentrates on three things, which include meme coins, hype-driven stories, and quick trading methods. The critics maintain that these trends lead people to ignore the process of developing new technologies and bringing them into general use. Buterin believes that the industry will repeat its previous pattern of working through speculative bubbles.

Infrastructure Outpacing Applications

Buterin noted that blockchain infrastructure has advanced faster than meaningful applications. He pointed to improvements in scalability, security, and transaction costs across major networks. Still, he said, technical progress alone cannot sustain the ecosystem.

According to Buterin, blockchain success depends on applications people use regularly. He referenced social, economic, and cultural functions as areas requiring further development. Without broader adoption, the cryptocurrency market is tied to speculative cycles.

He urged developers to focus on decentralized applications, decentralized autonomous organizations, and other tools that extend beyond trading. These systems, he said, should address real-world needs rather than short-term incentives. Such development requires patience and sustained collaboration.

Responsibility and Long-Term Direction

The developers hold primary responsibility for the future development of cryptocurrency, according to Buterin. The process of developing applications that deliver benefits to users results in extended time for financial returns as compared to speculative ventures. 

He presented essential long-term value creation as the fundamental requirement for industry survival. The developers maintain that market fluctuations provide financial resources that drive innovation through the use of both capital and a skilled workforce. The researchers argue that the initial market speculation phase can help develop projects that achieve lasting success. 

Buterin has acknowledged this dynamic while warning against making speculation the industry’s core identity. The industry experts interpret his statements as a request for the entire industry to evaluate its current state. The experts highlight the essential requirement for organizations to allocate funding toward developing functional tools and services. Can crypto sustain growth without shifting from speculation toward real-world utility?

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WLD climbs 15% with volume up 836% to $694M, showing stronger market interest in identity tech.

A breakout from a long descending channel boosts WLD momentum as buyers protect key support.

Open interest jumps 70% to $208M, signaling heavier trader positioning and rising volatility.

Worldcoin’s native token, WLD, pushed higher again today, extending the previous session’s burst of strength as fresh attention settled on the growing debate over identity verification in the digital era. The move followed a sharp swing the day before, when WLD briefly ran toward a fortnight peak around the $0.65 area before cooling off.

Even after the pullback, the token managed to hold a gain of more than 15% over 24 hours, trading close to $0.51. However, the surge wasn’t just noise. Trading activity jumped dramatically, with 24-hour volume rising about 836% to roughly $694 million.

That kind of spike tends to reflect more than passing speculation. Besides, analysts watching the order flow noted heavier participation from both spot and derivatives desks, a sign that buyers weren’t simply reacting to a headline but leaning into the move with size.

OpenAI: Identity Push Puts Spotlight on Verification Tech

The renewed interest followed a Forbes report on January 28 describing an OpenAI social network in development that aims to keep automated actors out by relying on biometric checks. The concept, something designed strictly for human users, sparked new attention toward verification systems already operating in the crypto space.

Worldcoin’s model was quickly pulled into the discussion because of its focus on confirming user uniqueness without collecting sensitive personal information. The overlap between leadership at the two organizations added to the attention, though no working relationship has been disclosed.

JUST IN: OpenAI is quietly building a social network and considering using biometric verification like World’s eyeball scanning orb or Apple’s Face ID to ensure its users are people, not bots.

Full story: https://t.co/ZFujshtUws (Photo: Florian Gaertner/Photothek via Getty… pic.twitter.com/Q82LMFdjWv

— Forbes (@Forbes) January 28, 2026

Instead, the story placed a broader industry shift in the spotlight: as digital environments grow more crowded with machine-generated activity, markets are beginning to reassess the value of identity infrastructure. That undercurrent helped lift sentiment around the WLD token, even if the market remains cautious about drawing direct lines between the projects.

Breakout Pattern Signals a Shift in Tone

Similarly, price action on the daily chart showed a clean push out of a descending channel that had guided the token lower since mid-October. After slipping along the channel floor for weeks, WLD finally broke through the upper boundary and slipped back to test it, holding that level before pressing higher again.

Despite the structure not being perfect, it was enough to suggest momentum had shifted to the upside. Equally notable was the defense of a broad support zone between roughly $0.47 and $0.27.

Source: TradingView

This range had previously acted as a base earlier in January, preceding a rally of about 40%. The latest move again originated from this area, reinforcing its technical significance. As long as prices remain above this zone, near-term structure points toward higher resistance levels.

Key Levels Come Into View

If the current tone holds, the next technical marker sits near $0.72, around the 23.6% retracement. Traders often watch that level for early signs of hesitation. Beyond it lie more meaningful checkpoints at $1.00 and $1.23, aligning with the 38.2% and 50% Fib levels, respectively.

Those levels sit closer to prior congestion areas, where upward attempts have historically slowed. Nevertheless, failure to maintain momentum would bring attention back toward the broad $0.47-$0.27 support region. That zone has absorbed pressure before, but a sharper return, especially with weakening volume, could alter the tone quickly.

Related: ASTER Price Escapes Long Decline as Breakout Signals Momentum

Rising Derivatives Activity Adds Volatility Risk

Meanwhile, momentum indicators looked balanced. The relative strength index hovered near the midpoint, neither signaling exhaustion nor urgency. That neutral stance fit the broader tape, which showed interest building but not yet tipping into euphoria.

Source: CoinGlass

Derivatives data told a more energetic story. According to CoinGlass data, open interest climbed roughly 70% in a day to about $208 million, a three-month high. Futures volume also jumped, rising around 476% to $1.34 billion.

Source: CoinGlass

Often, heavy derivatives participation tends to sharpen intraday swings, and with traders adding fresh exposure, WLD may face wider ranges in the sessions ahead. Overall, the latest move, backed by volume and renewed attention on digital identity, leaves the token in a more assertive position than it has held in months, though the path forward depends as much on sentiment as on structure.

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Sony invests $13M in Startale, deepening its role in owning core Web3 infrastructure.

Soneium shows rapid growth, reaching millions of wallets and hundreds of dApps since launch.

Startale and Sony target IP, AI, and creator monetization through entertainment-led Layer 2.

Sony has increased its commitment to blockchain infrastructure through a fresh follow-on investment in Startale Group. Startale Group announced it secured an additional $13 million at the first close of its Series A round.

The funding deepens a relationship that began during Startale’s seed round in September 2023. Since then, both companies expanded collaboration through Sony Block Solutions Labs.

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

Sony Block Solutions Labs operates as a joint venture supporting Soneium, an Ethereum Layer 2 network. Soneium represents a co-developed base layer rather than a simple third-party blockchain partnership.

This structure signals Sony’s intent to shape foundational Web3 rails instead of remaining an ecosystem participant. Large technology firms now view blockchains as digital infrastructure supporting future online services.

Sony Expands Its Role in On-Chain Infrastructure

Sony’s continued backing reflects progress achieved since the initial partnership launch. The companies share confidence in Startale’s vertically integrated approach to blockchain infrastructure.

Startale focuses on infrastructure that links entertainment, intellectual property, and artificial intelligence. Sony brings experience in global entertainment, hardware, software, and digital services.

Together, they seek to develop the infrastructure necessary for on-chain creator engagement and content distribution. Through the collaboration, Soneium is positioned as a blockchain intended for use cases centered around entertainment.

Soneium launched its mainnet in January 2025. Since launch, the network processed over 500 million transactions. The Layer 2 also recorded 5.4 million active wallets. More than 250 decentralized applications now operate on the network.

These metrics place Soneium among notable Ethereum Layer 2 platforms. Growth reflects demand for application-friendly blockchain infrastructure.

Startale continues to expand tools supporting the Soneium ecosystem. Now, users’ main point of access is the Startale App. The application integrates asset management, application access, and wallet features. This structure reduces friction for users entering the ecosystem.

Startale also introduced Startale USD, branded as USDSC. USDSC acts as a unified settlement layer across the network. The stablecoin connects applications, users, and payments within Soneium. This integration supports smoother value transfer between ecosystem participants.

Related: Sony Pushes Closed-Loop Web3 System With Startale USD Launch

Focus on IP, AI, and Creator Economies

The partnership aligns with changes in how entertainment companies approach digital content. Models for content production and distribution are still being transformed by generative AI. Entertainment firms now reassess authenticity, ownership, and creator compensation. Blockchain infrastructure provides tools to track rights and engagement transparently.

Startale’s technology supports IP-driven platforms built on on-chain records. Sony offers expertise in overseeing international portfolios of intellectual property. The companies aim to enable new creator monetization models. Additionally, they intend to encourage more interactive fan experiences.

Sota Watanabe, CEO of Startale Group, described Sony as a key partner. He said Sony supported Soneium from its earliest development stages. Watanabe stated Startale seeks to bring the world on-chain at global scale. He added Sony’s support strengthens delivery of necessary infrastructure.

Kazuhito Hadano, CEO of Sony Ventures Corporation, also commented on the deal. He said Startale operates across infrastructure and application layers. Hadano highlighted the team’s global focus on enabling new on-chain value flows. He said Sony looks forward to supporting Startale’s future ambitions.

The investment reflects Sony’s evolving blockchain strategy. Rather than testing isolated use cases, Sony now backs base-layer development. This approach positions Sony as a stakeholder in Web3 infrastructure. Soneium serves as a foundation for future digital entertainment services.

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Lawmakers plan a June vote with retail Bitcoin access capped and tested by rules.

Licensed exchanges face bank-level oversight and illegal platforms risk jail terms.

Sanctions pressure pushed banks and the central bank toward crypto use paths now.

Russia plans to introduce a long-awaited cryptocurrency law in July, setting a clear legal path for regulated Bitcoin access by retail and institutional investors by mid-2027. Anatoly Aksakov, head of the State Duma Committee on Financial Markets, said lawmakers will vote on the full framework by late June, according to Parliamentary Gazette.

If approved, the law will enter force on July 1, 2027, marking Russia’s first comprehensive national crypto regime after years of regulatory deadlock. The framework allows crypto trading under strict licensing, investor qualification rules, and enforcement measures while keeping digital assets outside domestic payment systems.

HUGE: Russia to legalize Crypto trading.

China is next pic.twitter.com/WxQ0VUoyFZ

— Crypto Rover (@cryptorover) January 16, 2026

Licensing Rules Target Exchanges and Market Structure

The bill introduces direct regulation for crypto exchanges, which currently operate in a legal grey zone under Russian law. Aksakov said unregistered exchange operators could face fines or prison terms, aligning crypto enforcement with existing penalties for illegal banking activity.

Licensed platforms must comply with anti-money-laundering rules and report transactions to tax authorities under the new framework. Russian traders will also gain permission to buy crypto abroad using foreign accounts and move those assets to domestic platforms after reporting transfers.

This structure aims to bring offshore and informal crypto activity under domestic regulatory oversight rather than eliminate participation.

Retail Limits and Investor Classification Take Shape

Retail access will follow a tiered system that separates non-qualified traders from professional investors. State news agency TASS reported that non-qualified traders may buy only the “most liquid” cryptocurrencies and up to 300,000 rubles, or about $3,900, per year.

Lawmakers also discussed an annual cap of $4,000 while requiring retail investors to pass an eligibility test before trading. Professional traders will face no purchase limits and may access nearly all cryptocurrencies, except privacy coins like Monero and Zcash.

These assets remain excluded due to anonymity features that conflict with Russian transparency and compliance standards.

Asset Whitelists and the Central Bank’s Policy Shift

The Central Bank of Russia plans to define which cryptocurrencies retail investors can access through an official whitelist. “Most likely, the Central Bank will compile a list of the top 5 or top 10 most traded cryptocurrencies on major exchanges,” said Alexandra Fedotova, a lawyer at White Stone.

“BTC and ETH will definitely be included. Possibly SOL or TON will be added, given their popularity in our country,” she said in comments cited by the Parliamentary Gazette. Fedotova added that only qualified investors will access assets outside the approved list.

She also said policymakers may classify stablecoins as tools for foreign trade, with USDT likely used through licensed brokerages only.

Read More: Russia Bans WhiteBIT Over Alleged Ukraine Military Funding

Sanctions Pressure Reshapes Russia’s Crypto Policy

Crypto regulation stalled for years due to conflict between the finance ministry and the central bank. The ministry supported both taxation and oversight, while the bank advocated for a China-style prohibition. United States, European Union, and United Kingdom sanctions later limited Russia’s ability to conduct dollar-based trade. 

The use of crypto by companies enabled them to make international payments without using conventional dollar-based systems, which led to a reversal of central bank policies.  Commercial banks now face increasing customer demand for direct access to cryptocurrency rather than using derivative financial products. Will Russia’s cryptocurrency system strike a balance between market access and financial independence amid increasing sanctions?

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Fidelity launches dollar-backed FIDD stablecoin on Ethereum under U.S. federal rules.

FIDD complies with GENIUS Act, holding cash and Treasuries with daily disclosures.

Ethereum launch enables 24/7 settlement and broad transfers across Fidelity platforms.

Fidelity Investments will launch a dollar-backed stablecoin on Ethereum. The token, called Fidelity Digital Dollar (FIDD), will be issued by Fidelity Digital Assets. The launch follows recent regulatory approval and reflects rising demand for regulated, blockchain-based payment instruments.

Fidelity’s Stablecoin Debut Under the GENIUS Act

The stablecoin will be issued by Fidelity Digital Assets, National Association, a federally chartered national trust bank. The Office of the Comptroller of the Currency granted the entity conditional approval on Dec. 12, 2025. That approval allowed Fidelity to proceed after meeting additional regulatory requirements.

Fidelity said FIDD will comply with the GENIUS Act, signed into law in July 2025. The legislation established federal standards for payment stablecoins in the United States. Notably, the law defines eligible reserves, disclosure obligations, and operational safeguards.

Fidelity confirmed that FIDD reserves will include cash, cash equivalents, and short-term U.S. Treasuries. Fidelity Management & Research will oversee reserve management. Daily disclosures will report circulating supply and reserve net asset value on Fidelity’s website.

Mike O’Reilly, president of Fidelity Digital Assets, said regulatory clarity influenced the timing. According to O’Reilly, the GENIUS Act provided clear guardrails for issuing a fiat-backed stablecoin. That framework enabled Fidelity to move forward with a compliant product.

Ethereum Launch and Platform Availability

Fidelity will issue FIDD on the Ethereum blockchain, the leading network for stablecoin activity. Ethereum currently hosts more than half of all stablecoins in circulation, according to RWA.xyz. Fidelity said Ethereum’s infrastructure supports broad interoperability and settlement efficiency.

FIDD will be redeemable at a one-to-one ratio for U.S. dollars. Users will access the stablecoin through Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers. The company also plans to list FIDD on major crypto exchanges.

Notably, Fidelity said users can transfer FIDD to any Ethereum mainnet address. This design allows use across decentralized finance protocols and blockchain-based applications. However, Fidelity did not announce integrations with specific DeFi platforms.

The firm expects FIDD to support around-the-clock settlement for institutional traders. Retail users may also use the token for on-chain payments. According to Fidelity, these use cases align with existing client demand for faster settlement options.

Fidelity stated that it may consider additional blockchains or layer-two networks later. However, the initial launch will remain limited to Ethereum. The company did not provide a timeline for potential network expansion.

Related: US Stablecoin Yield Ban Raises Dollar Competitiveness Fears

Stablecoin Market Context and Competitive Sector

Fidelity is stepping into a huge stablecoin market worth roughly $296 to $316 billion. In 2025 alone, stablecoins handled about $33 trillion in transactions, with January seeing monthly transfers hit $9.67 trillion, showing how fast the space is growing.

Tether’s USDT dominates the market with close to a 60% share and more than $177 billion in circulation. Circle’s USDC comes next, with a market value of around $70 billion.

However, regulatory developments have shifted issuer strategies. Tether launched a U.S.-compliant stablecoin, USA₮, earlier this week. 

That launch came shortly before Fidelity’s announcement and after the GENIUS Act took effect. Other firms have also entered the sector. PayPal and Ripple launched stablecoins in 2023 and 2024, respectively. Despite their launches, both remain far smaller than Tether and Circle by market capitalization.

Fidelity acknowledged the crowded market but emphasized client demand. The firm serves more than 50 million customers and manages over $15 trillion in assets. Its stablecoin development plans first surfaced publicly in March 2025.

Fidelity’s Broader Digital Asset Strategy

Fidelity has pursued digital asset initiatives since 2014. Its offerings include crypto custody, trading services, and a retail-focused Fidelity Crypto app. In 2025, the firm also introduced a crypto IRA product.

O’Reilly said FIDD fits within Fidelity’s existing digital asset platform. According to him, a native stablecoin supports low-cost payments and real-time settlement. Fidelity described the stablecoin as a foundational tool within its ecosystem.

The company confirmed that FIDD will become available in early February. Access will expand gradually across Fidelity’s platforms and external exchanges. Fidelity did not disclose an initial issuance size.

Fidelity Investments’ FIDD launch places a major asset manager into the regulated stablecoin market. The Ethereum-based token will operate under GENIUS Act standards with disclosed reserves. The rollout connects regulatory approval, platform expansion and rising stablecoin adoption into a single product strategy.

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ASTER exited a falling wedge at $0.68 after ninety days of compression and declining volatility.

The breakout requires a strong daily close above $0.69 to confirm trend continuation.

Trading incentives and macro timing now shape short-term risk and price stability.

Aster (ASTER/USDT) traded at $0.68 on the 1-day chart on MEXC today, following a confirmed breakout from a multi-month falling wedge pattern. The breakout marked the end of a compression phase that started in early October 2025, when ASTER peaked near $2.40, and continued for nearly 90 trading days. Due to the contraction of volatility from $1.85 to less than $0.15, there is now the potential for a directional breakout.

The chart was shared publicly by Captain Faibik, who stated that “$ASTER is finally breaking out of a falling wedge pattern.” Price respected both descending trendlines through at least seven touches, strengthening the pattern’s technical validity. The breakout occurred above $0.67, delivering a 6% daily move and briefly reaching $0.6843.

This move also reclaimed structure lost in mid-December 2025, when the token fell below $0.80 and entered a lower consolidation zone. As a result, ASTER returned to levels last seen before January’s final downside leg.

Measured Targets and Risk Levels Come Into Focus

Faibik’s chart includes a measured-move projection targeting $0.8124, implying a 119.40% expansion from the wedge’s lowest compression point. The projection box extends toward the $1.45–$1.50 range, an area that acted as supply during September 2025. This zone remains visible as a potential upside magnet if trend continuation holds.

Still, breakout volume remained below 1.2× the 20-day average, showing improving participation without aggressive conviction. The technical requirement needs a daily close with high trading volume to confirm the situation. The price will continue to consolidate for an extended period because the market lacks this essential requirement. 

Related: ASTER Price Steadies as Binance Wallet Launch Lifts Sentiment

The trader Brian used X to respond to the breakout, which occurred at $0.68. He stated that a daily close above $0.69 would confirm the trend shift while warning that retail longs exceed shorts by a 2.49 ratio. The way traders positioned themselves for trading activities created a 30% to 40% increase in the risk of downward price movements, which would happen more frequently during major economic events.

Breakout is live at 0.68, up 6 percent. Falling wedge is clearing, but watch for a high volume close above 0.69 to confirm the daily trend.

Retail is crowded long at a 2.49 ratio, adding flush risk. FOMC today at 19:00 UTC is the main catalyst. If 0.67 holds, targets are 0.72…

— Brain (@AskGigabrain) January 28, 2026

Trading Campaign and Macro Catalysts Add Complexity

Beyond technicals, ASTER’s decentralized exchange announced a $50,000 trading campaign tied to listings for ARTX, LIBERTY, and another new token. The campaign runs until February 3, 2025, offering rewards including 7 million ASTER tokens and 249.9 million LIBERTY tokens. Specific trading pairs receive a 1.2× symbol boost, while fees remain waived on the USD1/USDT pair.

The platform stated that it prohibits wash trading and Sybil attacks to protect reward distribution. ARTX supports digital art transactions within a blockchain insurance framework. 

LIBERTY functions as the governance token for a platform, providing user privacy protection. The 5% increase occurred after Zhao announced his plans to use ASTER for staking, which raised centralization issues. The project has rebranded itself as a decentralized perpetual exchange, introducing the  USDF stablecoin and Aster Chain testnet. The FOMC meeting will start at 19:00 UTC, and we need to assess whether ASTER can sustain its breakout while managing its incentives, leverage, and governance risk.

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Switzerland applies 0% capital gains tax to most private Bitcoin and crypto sales.

Professional trader status can tax crypto gains as income, reaching up to 40% overall.

Wealth tax applies yearly to crypto holdings; staking and mining rewards face income tax.

Switzerland applies a 0% capital gains tax rate to most private Bitcoin and crypto sales. Swiss tax practice treats crypto as private wealth, similar to personal stock sales. Tax authorities tax gains when trading activity looks like a business. Investors also face wealth tax and income tax on certain crypto rewards.

Moreover, the rules let investors plan holding periods, turnover and recordkeeping. Crypto Valley in Zug also continues to attract blockchain companies and decentralized autonomous organizations (DAOs). 

0% capital gains tax on crypto in Switzerland for private investors

Private individuals generally pay no capital gains tax when they sell crypto from personal holdings. Switzerland aligns crypto with private investments in stocks and bonds. Authorities review trading behavior to confirm private investing intent. Investors who manage wealth rather than trade professionally typically qualify.

Swiss “safe-haven” criteria often guide that assessment. The criteria expect investors to hold assets for at least six months before selling. They also cap annual transaction volume at five times the portfolio value at the start of the year. In addition, net capital gains should account for less than 50% of annual income.

The criteria also cover financing and derivatives use. Authorities expect investors to avoid debt financing or leverage when buying crypto. In addition, the framework limits derivatives to hedging existing positions. 

Investors also often record funding sources and trade timing. Clear records support private-investor status during tax review. 

Related: Swiss Government Delays Crypto Tax Data Sharing Plans to 2027

Professional trader classification can trigger income tax on gains

Tax authorities can classify an individual as a professional crypto trader. That classification turns crypto gains into taxable income at progressive rates. The scenario can lead to income taxes up to 40% for active traders. 

High-frequency trading and short holding periods can also signal professional intent. Large annual turnover can also raise scrutiny under the turnover cap in the criteria. Reliance on trading profits as a main income source can strengthen that signal. As a result, investors who live off profits may face income tax on gains.

Financing choices can also influence classification. Debt financing or leverage can weaken a private-investor profile under the criteria. Derivatives activity beyond hedging can also look business-like. Investors who cross these lines can see gains taxed as income rather than tax-free capital gains.

Wealth tax, Staking income, and CARF reporting updates

Switzerland charges an annual wealth tax on crypto holdings. Taxpayers calculate the tax on worldwide assets held on December 31, including cryptocurrencies. Cantons set rates, and they typically range from 0.1% to 1% each year. The levy applies even when capital gains remain tax-free.

Switzerland also taxes several crypto inflows as income when investors receive them. Staking rewards count as taxable income at fair market value at receipt. Mining rewards also create taxable income at receipt under the same approach. Airdrops also count as taxable income when tokens arrive.

Switzerland implements the Crypto-Asset Reporting Framework (CARF) from January 1, 2026. CARF requires crypto service providers to report transaction data to tax authorities. Reporting for the 2026 tax year is expected to be largely due in 2027. 

The update increases transparency across intermediaries without changing the 0% capital gains treatment for qualifying private investors.

UBS also plans to introduce crypto services gradually for select private clients in Switzerland, starting with bitcoin and ether, according to Bloomberg. The plan adds a bank-led route for exposure. The reporting push increases the need for clean records. Crypto Valley Zug remains a key hub as the market adjusts.

Switzerland combines tax-free private capital gains with wealth tax and taxable rewards. Professional trader classification creates the biggest swing for active participants. CARF reporting will widen transaction visibility as providers submit data. Investors and firms will likely prioritize classification evidence and documentation.

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USD1 reaches the 5th largest stablecoin spot as market capitalization approaches $5 billion.

WLFI vote approved treasury support for USD1, raising questions over governance fairness.

USD1 enters the top five but remains far smaller than the USDT and USDC market leaders.

USD1 has moved into the top tier of the stablecoin market after a sharp rise in supply. The token, issued by World Liberty Financial, now ranks fifth by market value. Data shows capitalization near five billion dollars. The move places USD1 ahead of PYUSD and DAI during a period of tight competition. Recent disclosures confirm the shift in public markets.

Source: CoinMarketCap

USD1 outpaced most peers over the past few months, market data showed. The rise signifies more issuance and wider circulation across crypto venues. The rankings put USD1 behind only USDT, USDC, USDS and USDe. The move is a significant foray into a group long dominated by established issuers.

WLFI Governance Vote and Trump Family Role Shape USD1 Expansion

World Liberty Financial is the entity behind USD1. The company was co-founded by members of the Trump family. Eric Trump serves as a co-founder and public representative of the project. He acknowledged the stablecoin’s rise in a public statement following the ranking update.

In his remarks, Eric Trump linked USD1’s growth to changes in digital finance. He described the expansion as part of a wider shift toward blockchain-based dollars. The statement focused on payment efficiency and global reach. No additional operational details were disclosed alongside the comment.

USD1’s growth followed a governance decision by WLFI. The protocol approved a proposal allowing part of its unlocked treasury to support the stablecoin. The vote authorized the use of internal assets to strengthen liquidity and adoption. The decision was executed through WLFI’s governance framework.

The governance process soon attracted criticism from analysts. DeFi² reported that voting power was concentrated among wallets linked to WLFI’s team and strategic partners. According to the analysis, these wallets held enough influence to determine the outcome. Critics said this raised concerns about decentralization.

Distribution Concerns Emerge as USD1 Lags Market Leaders

Further criticism focused on how benefits may be distributed. WLFI Gold Paper, which outlines revenue flows and affiliations. They argued that the approved structure may favor entities tied to the Trump family and the Witkoff group. At the same time, many WLFI tokens remain locked.

Related: World Liberty Expands USD1 Into Satellite Internet Payments

Some token holders questioned whether the vote treated participants equally. Locked holders did not receive direct benefits from the treasury allocation. The episode renewed debate over governance fairness within WLFI. The project has not disputed the voting data cited by DeFi².

Despite its rise, USD1 remains far smaller than the market leaders. Tether’s USDT and Circle’s USDC dominate the sector. Together, they account for more than 82 percent of the roughly $313 billion stablecoin market. Their scale and liquidity remain unmatched.

Below them sit USDS and USDe. These tokens hold established positions through existing DeFi and exchange integrations. USD1’s entry into the top five highlights momentum but not parity. Analysts note a wide gap in circulation and usage.

Eric Trump has also commented on traditional finance in recent remarks. He criticized major banks for opposing crypto-related legislation. He said settlement delays benefit banks by allowing them to earn interest on idle funds. His comments framed crypto as a challenge to existing systems.

Trump stated that digital assets enable faster money movement. He argued that this reduces reliance on intermediaries. According to him, resistance from banks reflects economic incentives. These statements coincided with USD1’s continued expansion.

The future of USD1 would be determined by governance procedures and regulations. Rankings can shift as supply and demand move. For now, USD1 is one of the top-five cryptocurrencies by market cap. The development brings WLFI under more scrutiny from the cryptocurrency industry.

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Ripple Treasury unifies fiat and digital asset management on one enterprise platform.

RLUSD enables cross-border settlements in seconds, cutting delays and liquidity risk.

Platform rollout follows GTreasury deal and supports Ripple’s regulated global expansion.

Ripple has introduced Ripple Treasury, a new corporate treasury platform that combines GTreasury’s enterprise software with Ripple’s blockchain infrastructure. The product is designed to bring traditional cash management and digital asset operations into one system. Ripple said the platform targets global companies that manage complex payments, liquidity, and reconciliation across multiple markets and currencies.

According to Ripple, the platform streamlines treasury functions such as cross-border payments, liquidity oversight, and asset reconciliation. It allows finance teams to manage fiat currencies and digital assets through a single interface. The company said this approach reduces operational fragmentation caused by using separate systems for cash and digital assets.

Ripple Integrates GTreasury After $1B Acquisition

The launch marks the first major product rollout following Ripple’s acquisition of Chicago-based GTreasury for $1 billion in October. At the time of the acquisition, GTreasury Chief Executive Renaat Ver Eecke described the deal as a significant step for enterprise treasury management. Ripple has since focused on integrating GTreasury’s software into its broader institutional product stack.

Ripple Treasury addresses key inefficiencies in corporate treasury operations. These include delayed settlement times, limited visibility into international payments, and manual reconciliation processes. The company stated that many firms still rely on spreadsheets and disconnected tools to track cash and digital asset positions.

The platform enables cross-border settlements in three to five seconds using Ripple’s RLUSD stablecoin, according to the company. Traditional cross-border payment systems often require several business days to complete settlement. Ripple said faster settlement improves liquidity availability and reduces counterparty and operational risk for treasury teams.

Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, said the platform modernizes how treasury departments manage payments and liquidity. He stated that Ripple Treasury allows teams to operate within a single system instead of switching between banking portals and digital asset platforms. Merrick added that the platform supports continuous capital deployment across global markets.

Introducing @Ripple Treasury

→ Unified visibility across traditional cash and digital assets
→ 24/7 yield optimization putting every dollar to work
→ Instant cross-border settlements reducing FX costs
→ Eliminate pre-funding requirements and unlock trapped working capital… https://t.co/C6uJ5ijh2J

— Reece Merrick (@reece_merrick) January 27, 2026

Ripple said the system supports 24/7 liquidity and yield management. The company said this feature is designed to align treasury operations with always-on digital asset markets while maintaining enterprise-grade controls.

Related: Ripple Receives Green Light for e-money License in Luxembourg

API-Based System Automates Cash and Asset Reconciliation

The platform replaces manual workflows with direct API integrations. Ripple said digital asset platforms are treated as “digital banks” within the system. This structure allows automated reporting, reconciliation, and cash visibility across both traditional financial accounts and blockchain-based assets.

Ripple previously said the GTreasury integration would expand access to short-term liquidity markets for institutional clients. Access to repo markets is expected to be provided through prime broker Hidden Road. Ripple acquired Hidden Road for $1.25 billion last year as part of its push into institutional financial services.

Ripple and GTreasury stated that the platform is designed to preserve existing treasury controls and reporting standards. These include audit trails, compliance checks, and regulatory reporting requirements. The companies said this approach is intended to meet the needs of large enterprises and regulated institutions.

The rollout comes as Ripple continues to expand its regulated payments presence globally. Earlier this month, Ripple received approval from the UK financial regulator for an Electronic Money Institution license and crypto asset registration. 

Ripple also secured preliminary approval for an EMI license from Luxembourg’s Commission de Surveillance du Secteur Financier. In the United States, Ripple applied for a national banking license with the Office of the Comptroller of the Currency in July 2025.

Ripple has stated that it does not plan to pursue an initial public offering. The company cited a strong balance sheet and a focus on growth initiatives. Recent acquisitions, including Hidden Road and stablecoin platform Rail, remain central to Ripple’s long-term expansion strategy.

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Illicit crypto laundering now moves through Chinese language services beyond exchanges.

Exchange compliance and fund freezes push criminals toward informal laundering networks.

Chinese language laundering networks handled about one-fifth of illicit crypto flows.

Illicit crypto laundering is moving away from centralized exchanges and into informal service-based networks, according to new findings from blockchain analytics firm Chainalysis.

The shift reflects tighter compliance at exchanges and growing use of Chinese-language laundering services. Criminals now prefer off-platform coordination together with money mules and informal trading channels, according to Chainalysis data. 

The main exit points for criminal proceeds used to be centralized exchanges. That role continues to shrink as enforcement pressure and asset-freezing risks rise.

Source: X

Why are criminals abandoning exchanges that once dominated crypto laundering flows?

Chinese-Language Networks Take the Lead

Chainalysis reported that Chinese-language laundering networks now dominate known crypto money laundering activity. The networks function through Chinese-speaking channels to provide laundering-as-a-service operations. The networks use money mules and informal over-the-counter desks together with gambling platforms as their primary methods for transferring money. The networks first appeared during the early months of the COVID-19 pandemic in 2020. 

The networks have developed into a global operation that serves users across multiple countries since their development. Chainalysis said these services allow criminals to break up, mix, and swap crypto outside regulated venues.

According to the firm, Chinese-language Telegram-based services now account for a disproportionate share of global on-chain laundering. They operate across borders and avoid formal registration. As a result, they remain harder for regulators to monitor or disrupt.

Exchange Crackdowns Reshape Laundering Routes

Centralized exchanges have strengthened customer checks and transaction monitoring in recent years. Global regulators have tightened rules to limit illicit crypto use. As a result, exchanges can now detect suspicious activity faster and freeze funds more often.

Chainalysis linked the decline in exchange-based laundering directly to these controls. The firm said criminals increasingly avoid exchanges because platforms can block withdrawals. That risk pushes illicit actors toward informal networks that operate beyond compliance frameworks. 

In the last five years, Chinese-language networks processed about 20% of tracked illicit crypto funds. During the same period, use of centralized exchanges steadily declined. Chainalysis said inflows to these networks grew far faster than inflows to exchanges.

Laundering Volumes Surge as Enforcement Lags

Chainalysis’s 2026 Crypto Crime Report shows how laundering patterns changed over time. In 2025, illicit on-chain crypto laundering exceeded $82 billion. That figure rose from about $10 billion in 2020. A Reuters report identified Chinese-language networks as a key driver of this growth. The report said these networks handled about 20% of known laundering activity.

They processed roughly $16.1 billion in illicit funds during the year. Chainalysis estimated that inflows to identified Chinese-language networks grew 7,325 times faster than inflows to centralised exchanges since 2020. The firm said rising crypto liquidity and accessibility fuelled the expansion. It added that law enforcement capabilities still lag behind criminal innovation.

Related: India Tightens Crypto Oversight To Block Illicit Money Flows

Tom Keatinge, director at the Royal United Services Institute, told Chainalysis there is a widening gap between criminals and law enforcement in crypto use. He said blockchain tracing tools help, but only address part of the problem. Keatinge called for global efforts to improve skills and information sharing across jurisdictions.

Chainalysis stated that successful disruption requires all three elements of illegal business operations – their distribution channels and advertising targeted platforms. The organization warns that shutting down individual facilitators results in the rapid replacement of those same facilitators. The company expressed that countries need to work together through international partnerships because informal networks have begun operating at larger scales.

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ERC-8004 mainnet launch enables AI agents to carry portable reputation across platforms.

Standard adds on-chain identity registries to establish trust between autonomous AI agents.

Ethereum positions itself as a neutral trust layer for AI services as adoption grows.

Ethereum is preparing to roll out ERC-8004 on mainnet, marking a key shift in how AI services scale globally. The new standard focuses on trust and reputation as AI agents expand across platforms and organizations.

Ethereum confirmed the upcoming launch in a post shared on X. Community discussions suggest the rollout could arrive as early as Thursday, Jan. 29. The standard introduces new tools for AI agents to discover each other and verify identities on-chain.

ERC-8004 is going live on mainnet soon.

By enabling discovery and portable reputation, ERC-8004 allows AI agents to interact across organizations ensuring credibility travels everywhere.

This unlocks a global market where AI services can interoperate without gatekeepers. https://t.co/Yrl0rvnSxj

— Ethereum (@ethereum) January 27, 2026

As AI systems grow more autonomous, coordination challenges continue to rise. Many AI agents now exchange data, handle value and make decisions without direct human control. Existing trust models struggle to support these machine-driven interactions at scale.

ERC-8004 aims to address this gap by using Ethereum as a neutral trust layer. The standard preserves consistent credibility while enabling AI agents to communicate across ecosystems. Developers anticipate that this strategy will facilitate gatekeeper-free open markets for AI services.

Portable identity for AI agents

ERC-8004 introduces on-chain registries that assign each AI agent a portable identity. These identities allow agents to prove who they are across different platforms and applications. Over time, the registries record reputation data tied to agent behavior and performance.

This setup allows credibility to move with an agent wherever it operates. Agents no longer depend on a single company or application to establish trust. Instead, independent parties can verify agent histories through shared blockchain records.

Ethereum developers say the design supports cooperation, negotiation and service delivery between agents. Before exchanging information or carrying out delicate tasks, agents can verify identities. This verification reduces reliance on centralized platforms that currently manage trust.

Additionally, ERC-8004 expands upon current standards for agent communication. It adds a blockchain-based layer focused on accountability and reputation. To minimize network costs, the majority of computation stays off-chain.

The blockchain serves as a reference point rather than a processing hub. This balance allows scalability while preserving verifiable trust signals. Developers say the approach fits Ethereum’s long-term design goals.

Related: Ethereum Fees Fall to 2017 Lows as Network Activity Surges

The standard arrives as AI agents move beyond experimentation. Currently, a lot of systems are ready for actual implementation in various industries. By 2026, AI agents may handle payments, data access, and automated decisions.

Current trust frameworks were designed for human users. They struggle when machines interact continuously and at high volume. ERC-8004 targets this mismatch by redefining trust for machine coordination.

Contributors submitted the proposal in August 2025. They formally presented it in October through Ethereum ecosystem discussions. Participants included contributors linked to the Ethereum Foundation and partner teams.

Developers involved in the effort say ERC-8004 turns Ethereum into shared infrastructure for AI trust. They view the network as a neutral layer rather than an application platform. This role could expand Ethereum’s reach beyond finance into AI services.

Ethereum’s upcoming roadmap is also in line with the anticipated mainnet launch. In 2026, the network intends to make a number of security and scalability improvements. ERC-8004 fits within broader efforts to support new use cases responsibly.

If adopted widely, the standard could enable global AI service markets. Agents could offer services across organizations without centralized approval. Reputation would replace platform control as the primary trust mechanism.

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