CryptoTale News

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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Morgan Stanley moves crypto from research to execution as regulation clears paths for banks.

ETF access and planned E*TRADE trading show crypto shifting into core wealth platforms.

Tokenization and digital wallets position the bank for long-term institutional adoption.

Morgan Stanley is speeding up its shift into digital assets, reflecting a broader turn on Wall Street where crypto is moving out of the margins and into regulated financial infrastructure. The bank, which oversees roughly $9.3 trillion in client assets, is no longer treating the sector as a side experiment.

Its recent steps point toward full integration; research, trading, issuance, and long-term product design now sit under one expanding strategy. Regulatory clarity in the United States has played a central role in that pivot. Rules around ETFs and stablecoin oversight have matured enough to give major banks room to build without wandering outside compliance lanes.

However, the pressure is also competitive. With peers steadily layering crypto capabilities across wealth management and institutional desks, Morgan Stanley is racing to match scale and meet client demand that has grown more persistent than the industry once expected.

Morgan Stanley: From Research Desk to Active Execution

A key signal of the bank’s shift came with the appointment of Amy Oldenburg as Head of Digital Asset Strategy. Her remit covers product development, trading coordination, and external partnerships, functions that were once scattered across different units.

Morgan Stanley appoints Amy Oldenburg as Head of Digital Asset Strategy.

“You want to hold your keys, you want to hold your coins.” pic.twitter.com/OPRUVF8w4v

— TFTC (@TFTC21) January 27, 2026

Consolidating them suggests the bank is moving past the observational phase and into execution with clearer ownership and fewer internal silos.  The timing was not incidental. The Grayscale Bitcoin Mini Trust ETF recently became available on Morgan Stanley’s platform, widening regulated Bitcoin exposure to more than $7.4 trillion in advisor-managed assets.

Initially, advisors had been allowed to recommend spot Bitcoin ETFs from BlackRock and Fidelity to select high-net-worth clients in 2024. Yet, by early 2025, those limits fell away, extending access across the firm’s broader wealth business, including retirement accounts.

Expanding Trading and Product Offerings

Notably, the firm’s roadmap shows a deliberate expansion of capabilities rather than a sudden break. In September 2025, Morgan Stanley confirmed plans to bring direct crypto trading to E*TRADE.

CRYPTO: Morgan Stanley to offer crypto trading through E*Trade following zerohash investment

Morgan Stanley is preparing to offer crypto trading to retail customers through its E-Trade platform, according to reports. The Wall Street giant is working with zerohash on the plans… pic.twitter.com/EeSqDA9xsE

— Sam Boboev (@samboboev) September 24, 2025

The rollout, slated for the first half of 2026, is expected to include Bitcoin, Ether, and Solana within the same regulated environment used for equities and listed options. That push runs alongside a new slate of product filings.

The bank has sought approval from the U.S. Securities and Exchange Commission for proprietary spot ETFs tied to Bitcoin, Solana, and Ethereum. The business case is not theoretical: Bitcoin ETFs have now amassed more than $114 billion in assets, turning issuance into a substantial revenue line.

The bank also filed for a staked Ethereum ETF designed to distribute staking rewards to investors, a sign that institutions are moving deeper into yield-bearing digital assets rather than staying at the surface.

Wall Street Momentum Builds

Morgan Stanley’s activity fits into a wider institutional trend. JPMorgan has explored using Bitcoin and Ether as collateral for large-scale lending. On the other hand, UBS is preparing to open crypto trading to select private banking clients.

Not to leave out, Citigroup continues to advance custody and digital-asset platform development. Industry trackers note that roughly 60% of the top 25 U.S. banks now offer or are preparing to offer Bitcoin-related services.

Related: Tether Unveils USA₮, Its First Fully Regulated U.S. Dollar Stablecoin

Building Toward Tokenization and Digital Wallets

The firm is also laying the groundwork for a later transformation. Engineers are developing an institutional digital wallet expected in late 2026, designed to hold both conventional portfolios and tokenized assets ranging from real estate to government bonds.

Analysts project the tokenized real-world asset market could expand to nearly $16 trillion by decade’s end. With ETF distribution, direct trading, proprietary issuance, and tokenization all moving in parallel, Morgan Stanley appears committed to embedding digital assets into mainstream investment architecture.

The strategy leans on scale, regulatory discipline, and long-term integration, an approach increasingly shared across Wall Street as crypto settles into the financial system rather than orbiting around it.

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Markets priced a steady Fed decision so Bitcoin traders now parse Powell words closely.

Political pressure and guidance tone carry weight when rate outcomes lack surprise.

Bitcoin price strength reflects sensitivity to future policy signals not rate math.

The Federal Reserve is expected to keep interest rates unchanged this week, yet Bitcoin traders remain focused on the message that follows rather than the decision itself. According to CME’s FedWatch tool, markets priced a 97% chance of no change as of Tuesday. With expectations firmly set, attention has shifted to Federal Reserve Chair Jerome Powell’s comments after the two-day meeting, which traders view as the key driver for near-term price direction.

Bitcoin shows price changes in response to monetary expectation changes instead of official interest rate adjustments. The absence of an unexpected decision leads to increased importance of forward guidance and tone and political context. Market positioning through risk assets will depend on Powell’s upcoming announcement regarding future interest rate movements. The central question facing traders remains clear: will Powell reinforce policy independence or signal vulnerability?

Fed Expectations and Market Positioning

Markets entered the week with strong confidence that the Federal Reserve will hold rates steady in its first decision of the year. Inflation data and employment conditions have changed little since December, which reduced the case for immediate cuts. The Fed already lowered rates three times in recent meetings, bringing the target range down from prior levels.

Because traders widely anticipated this pause, Bitcoin markets adjusted positions in advance. Analysts told news outlets that when outcomes are priced in, markets stop reacting to the decision itself and begin reacting to language. Risk assets like Bitcoin often respond more to changes in outlook than to static policy.

Political Pressure and Central Bank Independence

Politics has added a rare layer of complexity to this meeting. Powell faces allegations that he misled lawmakers about the cost of Federal Reserve building renovations. Powell has blamed President Donald Trump for the accusations. Trump has repeatedly called for lower interest rates and has threatened to remove Powell from office.

Related: China Nears US as Top Bitcoin Holder Despite Long Crypto Ban

Earlier this month, the US Justice Department opened an investigation into Powell’s Senate testimony on the renovations. Powell has since alleged that Trump used the Justice Department to pressure the central bank and influence monetary policy. The Federal Reserve traditionally operates independently to avoid short-term political influence that could undermine long-term economic stability.

Reports from the market indicate that traders maintain their trading patterns, and any indication that political pressure might impact governmental decisions. Previous analysis showed that central banks, along with Turkey, faced identical pressure, leading to inflationary trends that impacted Bitcoin market values. The current situation has developed as investors use Fed credibility assessments to measure their investment threats.

Bitcoin’s Reaction and Market Data

Bitcoin has historically performed well in low-interest-rate environments. When Fed chairs signalled rate cuts in the past, crypto markets often rallied. Markets currently believe the Fed will also hold rates steady at its March meeting, according to CME FedWatch data. Still, any hint of renewed cuts could surprise traders.

Bitcoin traded higher over the past 24 hours, rising 1.17% to $89,254.78, based on CoinMarketCap data. Market capitalization increased to $1.78 trillion, matching the daily gain. Trading volume rose 2.44% to $38.01 billion, pushing the volume-to-market-cap ratio to 2.13%.

Circulating supply stood at 19.98 million BTC, close to the 21 million maximum. Intraday charts showed an early dip below $88,000 before a sharp rebound toward $89,500, where prices consolidated. Traders now look to Powell’s remarks for confirmation or disruption of current expectations.

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EU-India trade pact expands services scope, bringing crypto market rules into focus.

India’s strict crypto taxes face pressure as EU trade deal highlights regulatory gaps.

Global trade tensions raise the deal’s value as India and EU hedge against U.S. tariffs.

India and the European Union finalized a free trade agreement, after talks began in June 2022. The pact links two markets covering about two billion people and 25% of global GDP. Beyond tariffs, the agreement expands services and trade rules, placing digital finance and crypto regulation under sharper focus.

Trade Pact Sets a Broader Policy Framework

The agreement removes or reduces tariffs on more than 96% of EU goods exports to India. Notably, it targets wine, olive oil, chocolate, pastries, machinery, chemicals and vehicles. EU officials estimate annual duty savings near €4 billion, while projections show EU exports to India could double by 2032.

However, the pact does not take effect immediately. European Parliament and Council approvals remain pending and could take at least a year. Until ratification, firms must plan around transitional rules, which shapes how cross-border services may comply.

Because the deal spans goods, services, and trade rules, it creates a wider policy container. This structure increasingly includes digital businesses, payment platforms, and crypto service providers. As a result, regulatory clarity becomes more visible within the trade framework.

EU leaders described the accord as the “mother of all deals.” Indian Prime Minister Narendra Modi echoed that description during India Energy Week. Meanwhile, European Commission President Ursula von der Leyen called it a partnership between two economic giants.

Alongside trade, both sides agreed on defense cooperation and mobility for skilled workers and students. Consequently, fintech and compliance talent mobility also becomes part of the broader relationship. This context matters for firms navigating digital asset operations across borders.

Crypto Rules Face Pressure Ahead of Budget 2026

India’s crypto industry already faces a strict tax regime. Current rules impose a flat 30% tax on virtual digital asset gains. In addition, authorities apply a 1% tax deducted at source on transactions.

Industry players say these rules are pushing traders to overseas platforms, where users often have fewer protections. Because of this, pressure to revisit crypto taxes is growing as Budget 2026 approaches.

At the same time, the EU–India free trade agreement has drawn attention to gaps in digital finance rules. Many European investors prefer clear compliance standards before entering a market, so clearer crypto rules could fit naturally with the deal’s services section.

The timing adds urgency. Budget 2026 comes after the FTA was agreed but before it is fully approved, putting policymakers under pressure to address digital asset rules as trade ties deepen.

Crypto exchanges and stablecoin firms already function like payment and service providers, yet India still does not have a specific crypto law. While the trade deal does not force crypto reform, it makes regulatory uncertainty more costly.

European fintech companies usually operate under clear frameworks like MiCA. As cross-border digital services grow, differences in regulation are becoming harder to ignore. Thus, regulatory definition becomes a practical issue, not a political statement.

Related: India Tightens Rules on Privacy Cryptos Over Laundering Risks

Global Trade Tensions Shape the Deal’s Context

The agreement comes amid increased global trade friction. U.S. President Donald Trump has pursued aggressive tariff policies, affecting both India and the EU. These actions disrupted trade flows and accelerated alternative partnerships.

Hosuk Lee-Makiyama, director at the European Centre for International Political Economy, described the deal as highly valuable. He noted both India and the EU have historically protected strategic sectors. According to Lee-Makiyama, limited options made this agreement especially important.

U.S. officials reacted critically. Treasury Secretary Scott Bessent cited U.S. tariffs on India over Russian oil purchases. He questioned Europe’s decision to advance a major deal under those conditions.

Trump, now the 47th U.S. president, has not commented publicly. However, officials in Washington expressed little expectation of approval. Meanwhile, Indian officials stressed continued engagement with the United States.

Petroleum Minister Hardeep Singh Puri told CNBC that a U.S.-India trade deal remains advanced. He urged calm and emphasized India’s open trade stance. This response framed the EU pact as part of a broader strategy.

Market conditions remain volatile. After Davos 2026 and renewed trade tensions, Bitcoin traded below $88,000. While unrelated directly, digital asset markets reflect broader geopolitical uncertainty.

India and the EU finalized a far-reaching trade agreement that influences goods, services, and trade rules across two major markets. The pact places regulatory attention on digital services, including crypto amid India’s existing tax framework. As Budget 2026 nears, trade integration, regulatory clarity and global tensions remain closely linked.

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Nearly four in ten U.S. merchants accept crypto as a checkout payment option nationwide.

Cards still dominate sales, while crypto provides speed and backup during failures period.

Larger firms lead adoption as complexity slows smaller merchants despite demand growth.

Nearly four in ten U.S. merchants now accept crypto at checkout, according to PayPal and the National Cryptocurrency Association. The shift, measured in an October survey of 619 payment decision-makers, shows operational choice, not disruption. Merchants added crypto as a similar payment rail for speed, flexibility and coverage when traditional systems slow, fail or cost more.

Crypto Acceptance Grows, But Cards Still Lead

PayPal reported that 39% of U.S. merchants accept crypto at checkout, based on the joint NCA survey released Tuesday. Notably, 88% of merchants said customers asked about paying with crypto, showing steady demand. However, merchants did not frame crypto as a card replacement.

Instead, the data shows coexistence. Among merchants that already accept crypto, these payments represent 26% of total sales. That share confirms use, yet cards and cash still carry the majority of transactions.

According to PayPal, adoption is strongest among large enterprises. Fifty percent of companies earning over $500 million annually accept crypto. By comparison, 34% of small businesses and 32% of midsized firms reported acceptance.

This gap comes down to size and systems. Bigger companies can plug in new payment options without breaking how customers already pay. Smaller businesses are more hesitant, even though many customers are interested.

PayPal Vice President and General Manager of Crypto May Zabaneh said crypto payments moved beyond experimentation. She added that merchants value faster, more flexible ways to accept funds. However, merchants continue to run crypto alongside cards, not against them.

Why Merchants Treat Crypto as a Similar Rail

Merchants listed practical reasons for adding crypto, according to the survey. Forty-five percent cited faster transaction speed. Another 45% pointed to access to new customers. Security and privacy followed closely. 

Forty-one percent highlighted enhanced security features, while 40% cited greater customer privacy. These factors matter most when traditional payment rails face friction. Notably, crypto acceptance often targets specific use cases. 

Cross-border purchases, digital goods and time-sensitive transactions see higher crypto usage. These situations benefit from faster settlement and fewer intermediaries. Several major U.S. companies already accept crypto, including Starbucks, Walmart and Home Depot. 

Their adoption signals operational optionality rather than payment replacement. They keep cards central while offering crypto as an alternative path. Industry data supports this layered approach. Hospitality and travel lead adoption at 81%. 

Digital goods, gaming, luxury, and specialty retail follow at 76%. Retail and e-commerce stand at 69%. Each sector values speed and global reach. However, none removed card payments after adding crypto. The pattern reinforces crypto’s role as insurance against checkout friction.

Related: Most Indian Crypto Investors Favor Stock-Like Tax Rules

Customer Demand and the Simplicity Barrier

Customer demand continues to drive adoption. The survey found that 69% of merchants said customers want to use crypto at least monthly. Additionally, 79% believe crypto acceptance helps attract new customers.

Younger shoppers lead this demand. Merchants reported the highest interest from Millennials at 77%. Gen Z or younger followed closely at 73%. Small businesses see particularly strong Gen Z engagement. Eighty-two percent reported crypto inquiries from Gen Z customers. 

This contrasts with 67% for midsize firms and 65% for large enterprises. Despite demand, complexity limits wider rollout. Ninety percent of merchants said they would try crypto if setup matched credit card simplicity. The same share said they would adopt if the payment experience felt equally easy.

Stuart Alderoty, NCA president and Ripple’s chief legal officer, addressed this gap directly. He said interest is not the issue, but understanding remains limited. He added that trusted platforms help close that knowledge gap.

PayPal launched a U.S. crypto checkout tool in July. The tool allows merchants to accept payments in over 100 cryptocurrencies. The launch aims to reduce setup friction without changing existing checkout habits. Merchants who implemented crypto report momentum. 

Seventy-two percent of crypto-accepting merchants said their crypto sales increased over the past year. The growth supports crypto’s role as a working payment option. Crypto payments now sit beside cards, not in front of them. The survey data shows merchants value redundancy, optionality, and customer choice at checkout.

Meanwhile, U.S. merchants added crypto as a secondary payment rail and not a replacement. PayPal and NCA data shows steady use, driven by customer demand and operational flexibility. Cards remain central, while crypto provides coverage when speed, access or simplicity matters most.

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USA₮ launches under U.S. federal rules with Anchorage Digital Bank as its regulated issuer.

The GENIUS Act pushed Tether to create a compliant U.S. stablecoin for domestic users.

USA₮ gains early traction via major exchanges and Visa-linked payments through Oobit.

Tether has formally launched USA₮, marking its first fully regulated, dollar-backed stablecoin built specifically for the United States market. The token is issued by Anchorage Digital Bank, N.A., making it subject to federal oversight by the Office of the Comptroller of the Currency.

The launch positions the company inside the U.S. banking perimeter at a time when federal rules now define who can issue and distribute stablecoins to American users. Similarly, the market debut follows an announcement late last year that outlined the product’s structure and leadership, including the appointment of former White House Crypto Council Executive Director Bo Hines as chief executive of the U.S. unit.

Tether Announces the Launch of USA₮, the Federally Regulated, Dollar-Backed Stablecoin, Made in America

Read more: https://t.co/rIMQTQ7ipX

— Tether (@tether) January 27, 2026

With availability now live for U.S. users, the new token is designed to meet federal requirements introduced under the GENIUS Act, the first nationwide framework governing stablecoins marketed in the United States.

Built For The Genius Act Era

The GENIUS Act reshaped the U.S. stablecoin landscape by limiting distribution to tokens issued by federally or state-qualified entities. As a result, offshore-issued stablecoins that fall outside those standards face restrictions across U.S.-regulated exchanges, banks, and payment providers.

That framework narrowed the domestic use of existing offshore dollar tokens and accelerated the need for a compliant alternative. USA₮, however, was designed to meet those requirements from inception.

Issuance through a federally regulated bank places governance, reserves, and compliance within the U.S. banking system. According to company statements, the structure is intended to provide U.S. institutions with a regulated digital dollar while maintaining operational separation from global products used outside the country.

Executive Framing and Institutional Focus

Paolo Ardoino, chief executive of Tether, said the new token extends the firm’s long-standing digital dollar model into a federally supervised environment tailored for the U.S. market. He pointed to more than a decade of operational history for global dollar tokens as evidence of demand for programmable dollars at scale.

USD₮ has proven for more than a decade that digital dollars can deliver trust, transparency, and utility at a global scale. USA₮ extends that mission by providing a federally regulated product designed for the American market,” Paolo Ardoino noted.

Bo Hines further added that the U.S. product was designed to meet federal regulatory expectations around stability, transparency, and governance. The stated objective is to support regulated financial institutions that require clear supervisory oversight when engaging with blockchain-based settlement assets.

Exchange Rollout and Early Access

During the initial phase, USA₮ is available to U.S. users through major platforms including Bybit, Crypto.com, Kraken, OKX, and MoonPay. Distribution through these venues gives the token immediate reach across spot trading, on-ramps, and payments infrastructure already used by U.S. customers.

Market analysts describe the launch as a direct competitive response to regulated U.S. stablecoins that have dominated institutional usage due to early compliance alignment. By introducing a bank-issued token, the company can re-enter segments such as broker-dealer settlement, regulated payments, and institutional liquidity management that require federally compliant instruments.

Related: Japan Opens Consultation on Stablecoin Reserve Asset Rules

Payments Integration and Merchant Reach

Payments network Oobit has also announced support for the new stablecoin, becoming the first payments provider to enable spending at more than 100 million merchants worldwide where Visa is accepted. The integration follows Oobit’s recent U.S. launch and allows users to transact at physical and online retailers using existing card acceptance rails.

By combining federal bank issuance with mainstream payments access, USA₮ enters the market positioned for institutional finance and everyday transactions. The structure reflects a dual-track strategy: a regulated dollar token for the United States and a separate global product for international markets.

For the U.S. stablecoin sector, the launch underscores how federal rules are reshaping issuer models and accelerating the convergence of digital assets with traditional banking infrastructure.

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Tether builds 140-ton gold stockpile in Swiss vaults using stablecoin profits globally.

USDT interest income now funds sovereign-scale gold buying outside banks globally today.

Tether expands gold trading and XAUT tokenization alongside physical bullion custody.

Every week, trucks deliver more than a ton of gold into a fortified Swiss bunker controlled by a Tether. According to Bloomberg, Tether Holdings SA has amassed about 140 metric tons of gold, worth roughly $23 billion, stored in Switzerland during 2025 and early 2026. The buying reflects how profits from USDT issuance now fund sovereign-scale bullion accumulation outside governments and banks.

Swiss Vaults Anchor a Growing Bullion Stockpile

The gold sits inside a former Cold War nuclear bunker in Switzerland, guarded by multiple steel barriers, according to Bloomberg. Tether chose direct custody rather than relying on commercial bank vault networks. Paolo Ardoino, Tether’s chief executive, said the company views physical control as essential to reserve security.

This stockpile makes Tether the largest known private gold holder outside central banks, ETFs, and bullion banks. However, most of the metal belongs to company reserves, while a smaller portion backs its gold-linked token, XAUT. Together, the holdings reached about 140 tons by early 2026, Ardoino confirmed.

The pace of accumulation remains steady. Ardoino told Bloomberg that Tether purchased roughly one to two tons weekly for several months. However, he said buying decisions undergo quarterly reviews, depending on market conditions and reserve needs.

This activity intensified during 2025, when analysts estimate Tether acquired over 70 tons within a single year. Notably, only Poland reported larger declared central bank purchases during that period. As a result, Tether emerged as a visible marginal buyer during gold’s sharp rally.

Stablecoin Profits Power Sovereign-Scale Buying

Tether funds its gold purchases using income from USDT, the largest dollar-pegged stablecoin, with about $186–187 billion circulating. The company invests incoming dollars mainly in U.S. Treasury bills, generating interest income. However, part of those profits now flows into gold and other assets.

According to Tether disclosures, gold represented about 7% of USDT reserves as of late 2025. However, that share translated into billions of dollars, given the scale of issuance. Notably, Bloomberg calculated that Tether outbought most central banks during several 2025 quarters.

In Q4 2025 alone, Tether added roughly 27 tons of gold, matching its Q3 pace. Bitwise CIO Matt Hougan said those purchases likely ranked among the world’s top three for the quarter. However, unlike central banks, Tether does not buy gold for monetary policy purposes.

Instead, the strategy shows reserve diversification and product backing. According to S&P Global Ratings, rising exposure to assets like gold contributed to a “weak” stability assessment for USDT in November. Tether reports its reserves through quarterly attestations signed by BDO Italia.

Related: Tether Deepens Gold Exposure as Global Demand Drives Prices

Trading Ambitions and Tokenized Gold Expansion

Beyond holding bullion, Tether plans to trade gold actively. Ardoino told Bloomberg the company aims to compete with major banks, including JPMorgan and HSBC. To support that effort, Tether hired senior gold traders from HSBC during 2025.

The company plans to exploit arbitrage between futures and physical markets while remaining long physical gold. However, Ardoino acknowledged logistical challenges, since large bullion orders can take months to settle. Tether sources metal directly from Swiss refiners and major financial institutions.

Alongside trading, Tether expanded its presence in gold-linked equities. It acquired stakes in Canadian royalty companies, including Elemental Altus Royalties and Gold Royalty Corp. Sources told Bloomberg that Juan Sartori led much of that investment activity.

Meanwhile, Tether Gold, XAUT, continues to grow. The token represents claims on physical bullion stored in Swiss vaults meeting London Good Delivery standards. By late 2025, XAUT accounted for about 60% of the global gold-backed stablecoin market, according to company data.

As of December 31, Tether held over 520,000 fine troy ounces backing XAUT one-to-one. In early 2026, XAUT’s market capitalization rose to about $2.24 billion, reflecting continued issuance. Ardoino said future demand could require additional weekly gold purchases.

Tether’s gold accumulation now rivals sovereign buyers in scale and frequency. The company converts stablecoin yield into physical bullion stored under its control. As a result, gold demand increasingly includes private digital-asset issuers alongside central banks.

Its strategy spans custody, trading and tokenization, all tied to USDT-generated income. However, gold still represents a minority share of overall reserves. These activities illustrate how stablecoin economics now intersect directly with global bullion markets.

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