Blockonomi

TLDR

Citi analyst sets $235 price target on Palantir, forecasting 70-80% revenue growth in 2026

U.S. commercial segment revenue surged 121% in Q3 as AI platform gains enterprise traction

PhillipCapital initiates buy rating at $208, arguing stock undervalued versus historical averages

Company backlog of $2.6 billion up 65% provides visibility into future revenue

Stock trades at 170x forward P/E, down from 309x peak in October

Palantir Technologies shares dropped 17% in three months. Now two analysts say the decline created opportunity.

Tyler Radke at Citi raised his price target to $235. That implies 42% upside from Tuesday’s close.

Radke thinks standard valuation models don’t apply to Palantir anymore. The company is growing too fast while improving margins.

He expects government revenue to jump 51% this year. Defense budgets are expanding and agencies need IT modernization.

Total revenue could grow 70-80% in 2026, Radke predicts. The Artificial Intelligence Platform is driving demand across sectors.

Commercial Business Powers Growth

Third quarter results show the momentum. Revenue climbed 63% year-over-year to $725.5 million.

The U.S. commercial segment led the way. Sales jumped 121% compared to last year and 29% from the prior quarter.

This business now accounts for 34% of total revenue. AIP adoption is accelerating among enterprise customers.

Government agencies are starting to use the platform too. They saw commercial success and want similar results.

Remaining performance obligations reached $2.6 billion, up 65%. These contracted sales will convert to revenue over time.

Management raised guidance for the year. They expect revenue of $4.4 billion, representing 53% growth.

U.S. commercial should hit $1.43 billion for 104% expansion. The business is outpacing earlier projections.

Valuation Looks Better

Paul Chew at PhillipCapital started coverage with a buy rating. His $208 target suggests 32% upside.

Chew compares Palantir to its own history rather than peers. By this measure, the stock looks cheaper.

Forward P/E dropped from 309x in October to 170x today. That’s below the one-year average of 190x.

The AI selloff pushed valuations down across the sector. Palantir got caught in the broader decline.

Chew notes the company has captured just 2.4% of its $119 billion addressable market. The AI software space is growing over 25% annually.

He projects $4.2 billion in 2025 revenue for 47% growth. Net profit should nearly double this year.

Commercial revenue will grow faster than government. The segments should increase 51% and 43% respectively.

Palantir expanded from 60 industry sectors in 2021 to 90 in 2024. Each new vertical adds revenue potential.

The company posted a Rule of 40 score of 114% in Q3. This metric combines growth rate and profit margin.

Most analysts remain neutral on the stock. Consensus shows six buys, ten holds, and two sells.

The average price target is $189.94 for 21% upside. Both Radke and Chew sit well above this level.

Palantir has gained 2,190% over three years. The stock experienced at least ten drawdowns of 20% or more during that period.

Both analysts think the latest pullback doesn’t reflect the business fundamentals. Growth is accelerating while margins expand.

The defense spending cycle and AI adoption could drive shares higher. Management keeps raising guidance as demand exceeds expectations.

The post Palantir (PLTR) Stock: Why Analysts See 42% Upside After Recent Drop appeared first on Blockonomi.

TLDR

Nokia reported Q4 2025 revenue of €6.1 billion, up 3% year-over-year, driven by AI and cloud infrastructure demand

Comparable operating profit of €1.06 billion missed prior year’s €1.09 billion as margins compressed to 17.3%

Network Infrastructure jumped 19% while Mobile Networks fell 1.7%, showing the company’s ongoing business transformation

2026 operating profit guidance of €2.0-€2.5 billion fell 5% short of analyst consensus at €2.37 billion

Stock declined 5.8% in early European trading as investors digested the weaker-than-expected outlook

Nokia posted solid fourth quarter revenue Thursday but disappointed Wall Street with conservative 2026 guidance, sending shares down 5.8% in early trading.

$NOK
NOKIA CORP#earnings results: pic.twitter.com/vwFY23HQNi

— Earnings Today (@EarningsToday) January 29, 2026

The Finnish equipment maker reported Q4 revenue of €6.1 billion, matching analyst forecasts. Year-over-year growth hit 3% on a constant currency basis, with AI and cloud customers driving the expansion.

CEO Justin Hotard’s pivot toward data center markets delivered results. The Network Infrastructure division grew 19% as demand for AI infrastructure accelerated. Optical Networks, critical for data center connectivity, posted 17% growth within that segment.

“Order intake was strong across Optical and IP Networks, with book-to-bill remaining above one, driven by demand from AI & Cloud customers,” Hotard stated.

Comparable operating profit reached €1.06 billion for the quarter, down from €1.09 billion a year earlier. Operating margin fell 90 basis points to 17.3%. Nokia attributed the compression to growth investments, including integrating Infinera, its recent optical networking acquisition.

The company reported €0.16 in comparable diluted EPS and €0.10 in reported diluted EPS. Net cash stood at €3.4 billion at quarter end.

Mobile Business Stabilizes Amid Decline

Mobile Networks revenue dropped 1.7% as North American carrier spending weakened. Growth in the Middle East, Japan, and Indonesia partially offset the decline.

The unit’s gross margin improved to 40.1% from 37.3%, indicating stabilization despite revenue pressure. For full-year 2025, Nokia achieved 2% constant currency revenue growth with €2.0 billion in comparable operating profit and €1.5 billion in free cash flow.

Group comparable net profit hit €880 million, beating the €834 million consensus. The company took full ownership of its China joint venture during the quarter for €0.5 billion in cash.

2026 Guidance Triggers Selloff

Nokia’s 2026 outlook sparked the stock decline. The company guided for €2.0-€2.5 billion in comparable operating profit. The €2.25 billion midpoint trails consensus by roughly 5%.

J.P. Morgan analysts expect “mid-single digit downgrades to consensus” following the guidance miss.

Nokia projects 6-8% Network Infrastructure growth in 2026, aligning with long-term targets. However, management warned Q1 2026 revenue would decline more than seasonal norms, with operating margin rising only slightly year-over-year.

The board proposed €0.14 per share dividend authorization for 2025. Chair Sari Baldauf will step down, with Timo Ihamuotila nominated as replacement. Meredith Whittaker from Signal Technology Foundation received a board nomination.

The post Nokia (NOK) Stock: Why Shares Tanked Despite Strong AI Revenue Growth appeared first on Blockonomi.

TLDR

Carvana (CVNA) shares plunged 14.2% Wednesday to $410.04 after Gotham City Research accused the company of overstating 2023-2024 earnings by over $1 billion

Short-seller alleges Carvana inflated profits through transactions with DriveTime and Bridgecrest, companies owned by CEO’s father Ernest Garcia II

Carvana rejected the claims as “inaccurate and intentionally misleading” and reaffirmed its February 18 earnings release date

The stock has risen 10,000% since December 2022 despite facing multiple short-seller attacks in recent months

Wednesday’s decline was Carvana’s second-worst trading day of the past year

Carvana stock got hammered Wednesday. The online used-car retailer closed at $410.04, down 14.2%.

Short-seller Gotham City Research triggered the selloff. The firm released a report claiming Carvana overstated earnings by more than $1 billion across 2023 and 2024.

That’s a massive allegation. Carvana reported total net income of approximately $550 million during those two years.

Gotham City claims Carvana inflated its numbers through questionable deals with related companies. The short-seller specifically targets DriveTime Automotive Group and Bridgecrest Acceptance Corp.

Both companies share a common owner: Ernest Garcia II. He’s Carvana’s biggest shareholder and the father of CEO Ernest Garcia III.

The report alleges Carvana is “far more dependent on related parties” than investors know. Gotham City published what it says are 2024 audited financials from DriveTime and Bridgecrest obtained through a Freedom of Information Act request.

Carvana Fights Back

Carvana wasted no time responding. The company issued a statement calling the report “inaccurate and intentionally misleading.”

Carvana insists all related party transactions are properly disclosed in its financial statements. The company also confirmed its February 18 earnings release remains on schedule.

This directly contradicts Gotham City’s claim that Carvana would delay its 10-K annual filing. That’s an important detail for investors watching closely.

History Repeating Itself

Short-sellers have been circling Carvana for months. This is just the latest attack on the company’s accounting practices.

Hindenburg Research took a short position in January 2025. That firm called Carvana’s turnaround a “mirage” built on unstable loans and accounting tricks.

Jim Chanos, one of Wall Street’s most famous short-sellers, also bet against Carvana. He accused the company of aggressive accounting to juice results.

Yet Carvana stock keeps defying the doubters. Shares have rocketed more than 10,000% since December 2022.

Back then, bankruptcy looked likely. The stock traded below $5 per share.

The Turnaround Story

Carvana pulled off a dramatic recovery. The company slashed costs in 2023 and renegotiated its debt with creditors.

That effort paid off big. Carvana joined the S&P 500 last month, a milestone for any company.

Tuesday, shares closed at $477. Wednesday’s drop erased those gains and then some.

The decline marked Carvana’s second-worst trading day in the past year. Shares hit their lowest level since early December.

Carvana will report 2025 earnings on February 18.

The post Carvana (CVNA) Stock Tumbles 14% on Short-Seller Fraud Claims appeared first on Blockonomi.

TLDR

Strive paid off $110 million in debt from Semler Scientific acquisition, representing 92% of inherited liabilities

Company raised $225 million through preferred stock after seeing $600 million in investor demand

Purchased 334 Bitcoin at $89,851 average price, pushing total holdings to 13,132 BTC valued at $1.17 billion

ASST shares dropped 2.23% to $0.80, now down 92.4% from peak despite balance sheet improvements

Remaining $10 million debt scheduled for elimination within four months

Strive raised $225 million through a preferred stock offering and immediately put the cash to work eliminating debt and buying more Bitcoin.

The company announced Wednesday it retired $110 million of liabilities inherited from its January 13 acquisition of Semler Scientific. This wipes out 92% of the debt from that deal.

The debt payoff included $90 million in convertible notes exchanged for Variable Rate Series A Perpetual Preferred Stock trading as “SATA.” Strive also paid off a $20 million Coinbase credit facility completely.

Massive Demand Drives Upsized Offering

Strive originally planned to raise $150 million. Investor demand hit $600 million, forcing the company to increase the offering to $225 million.

The preferred shares work as long-duration equity financing. This lets Strive fund Bitcoin purchases without piling on more leverage.

After closing the offering, Strive bought 333.9 Bitcoin at an average price of $89,851 per coin. Total holdings now stand at 13,132 BTC.

That Bitcoin stash is worth roughly $1.17 billion at current prices. The holdings place Strive among the top 10 corporate Bitcoin treasury companies worldwide.

With the Coinbase loan paid off, all of Strive’s Bitcoin holdings are now unencumbered. The Vivek Ramaswamy-backed company plans to eliminate the remaining $10 million in debt over the next four months.

Strive reported a Bitcoin yield of 21.2% quarter-to-date. This measures how much Bitcoin exposure per common share has grown during the period.

Shares Drop Despite Progress

The market didn’t reward Strive’s debt reduction efforts. ASST shares fell 2.23% on Wednesday to close at $0.80.

The stock has crashed 92.4% from its $10.46 peak hit after announcing the Bitcoin treasury strategy. This shows the volatility tied to corporate crypto plays.

More than 190 publicly traded companies now hold Bitcoin on their balance sheets. Together they own about 1.134 million BTC, or 5.4% of total supply.

Michael Saylor’s Strategy dominates this space with nearly 63% of all corporate Bitcoin holdings. Strategy keeps buying despite tighter market conditions in recent months.

Corporate Bitcoin Treasury Trend Continues

The corporate Bitcoin treasury model exploded in popularity during 2024 and early 2025. Many companies saw share prices tumble later as investors questioned whether the strategy works long-term.

Strive finalized its Semler Scientific acquisition following a merger agreement reached in September. Semler operated as a Bitcoin treasury company before the transaction closed.

The preferred stock offering gave Strive the capital to clean up its balance sheet while expanding Bitcoin exposure. The company holds 13,132 BTC worth $1.17 billion with just $10 million in remaining debt.

The post Strive (ASST) Stock: Bitcoin Treasury Firm Wipes Out Most Debt After $225M Raise appeared first on Blockonomi.

TLDR

ServiceNow shares declined over 2% after hours despite fourth-quarter earnings that surpassed analyst expectations across revenue and profit metrics.

The company guided 2026 subscription revenue to $15.53-$15.57 billion, beating the $15.21 billion Wall Street consensus estimate.

ServiceNow expanded AI partnerships with Anthropic and OpenAI to integrate chatbot technology across its platform.

A $5 billion share repurchase authorization was announced with an immediate $2 billion accelerated buyback planned.

The company closed its biggest acquisition, purchasing cybersecurity firm Armis for $7.75 billion.

ServiceNow stock dropped more than 2% in extended trading Wednesday. The decline came despite the company posting better-than-expected fourth-quarter results.

SERVICENOW $NOW JUST REPORTED Q4 2025 EARNINGS

Topline Performance
• Revenue: $3.57B Vs $3.53B Est
• Subscription Revenue: $3.47B

Profitability
• EPS: $0.38
• Adjusted EPS: $0.92 Vs $0.88 Est
• Net Income: $401M

Outlook
• Q1 Revenue Outlook: $3.65B To $3.655B
• FY… pic.twitter.com/QYzkUNltzQ

— WOLF (@WOLF_Financial) January 28, 2026

The enterprise software company reported Q4 revenue of $3.57 billion. That represented a 20.5% increase from the prior year and beat the $3.53 billion analyst estimate.

Adjusted earnings reached 92 cents per share. Wall Street had projected 88 cents per share.

The stock has faced headwinds recently. Shares tumbled 28% in 2025 and are down over 15% year-to-date.

Market observers cited stretched valuation metrics as a drag on the stock. Technical indicators and elevated options volatility also weighed on investor sentiment.

Strong Subscription Revenue Outlook Powered by AI

ServiceNow projects 2026 subscription revenue between $15.53 billion and $15.57 billion. The forecast topped the Street’s $15.21 billion expectation.

The company unveiled deeper integration plans with Anthropic and OpenAI. Claude models from Anthropic will be embedded more extensively into ServiceNow products.

Recent acquisitions are boosting growth projections. The Moveworks deal added roughly 100 basis points to the annual subscription revenue forecast.

ServiceNow also acquired security company Veza and sales platform Logik.ai. The acquisition spree aims to expand the company’s addressable market across industry workflows and security solutions.

First-quarter subscription revenue is expected between $3.65 billion and $3.66 billion. That exceeds the $3.57 billion analyst consensus.

Armis Acquisition and Buyback Program

The company completed its largest deal ever, acquiring Armis for $7.75 billion. The cybersecurity startup purchase marks a major bet on the security market.

ServiceNow’s board approved an additional $5 billion for share repurchases. Management plans to execute a $2 billion accelerated buyback immediately.

The aggressive M&A strategy has created pressure on the stock price. Analysts are recalibrating price targets given the current valuation multiples.

Despite the strong financial performance, investors remain cautious about the company’s premium trading levels. The combination of acquisition spending and high valuation has kept buyers on the sidelines.

ServiceNow’s remaining performance obligations increased during the quarter. Customer adoption of AI-powered products continues to accelerate across the platform.

The post ServiceNow (NOW) Stock Falls Despite Earnings Beat and Raised Guidance appeared first on Blockonomi.

TLDR

Coinbase partnered with Kalshi to offer prediction markets in every US state

Platform enables trading on sports outcomes, political events, and cultural happenings

Kalshi is federally regulated but faces state legal challenges over sports betting licenses

Launch positions Coinbase as an “everything exchange” with diverse trading options

Timing aligns with upcoming Super Bowl, giving users betting opportunities on major events

Coinbase unveiled prediction market trading across all 50 states on Wednesday. The feature launches through a collaboration with Kalshi, a prediction market operator regulated by federal authorities.

LATEST: Coinbase has expanded its prediction markets offering to all 50 US states through Kalshi, with users able to trade on outcomes across sports, politics, culture and more in USD or USDC. pic.twitter.com/68bHP7c9bk

— CoinMarketCap (@CoinMarketCap) January 29, 2026

Users can now trade on outcomes ranging from NFL games to presidential elections. The platform also covers cultural events, collectibles, and economic data releases.

Coinbase first announced the Kalshi partnership in December. The full nationwide rollout happened this week via an X post from the exchange.

The timing works well for Coinbase. The Super Bowl arrives in roughly one week, giving users a high-profile event to trade on right away.

Trading Real-World Events

Kalshi’s model uses yes-or-no contracts on specific outcomes. Traders pick a side and the contract price shows what the market thinks will happen.

Higher prices mean the crowd believes that outcome is more likely. Lower prices suggest skepticism from other traders.

The Commodity Futures Trading Commission regulates Kalshi at the federal level. This oversight allows the platform to operate as a derivatives exchange in the United States.

Coinbase acquired The Clearing Company last month. That purchase supports the exchange’s expansion into prediction markets and alternative trading products.

State Legal Battles

Kalshi faces lawsuits from at least four state governments. Massachusetts and Tennessee filed cases claiming the platform needs gaming licenses for sports betting.

The state actions continue despite Kalshi’s federal regulatory approval. Each state maintains separate gambling and gaming laws that may conflict with federal oversight.

Polymarket deals with similar legal pressure. Tennessee authorities took action against Polymarket over sports betting operations without state licenses.

Insider Trading Questions

Polymarket recently caught heat from Congress over potential insider trading. One user reportedly made over $400,000 betting on the capture of Venezuelan President Nicolás Maduro.

The user’s timing raised red flags with lawmakers. They questioned whether the trader had advance information about the operation.

Members of Congress demanded action on insider trading rules for political prediction markets. The incident highlighted gaps in oversight for these platforms.

The Everything Exchange Vision

Coinbase calls its expansion strategy the “everything exchange” approach. The company wants to offer stocks, crypto, tokenized assets, and now prediction markets under one roof.

Prediction market activity jumped over the past year. Platforms like Polymarket saw huge volume increases as users traded political and economic events.

These markets give real-time sentiment readings on current events. Some traders use them as data sources alongside traditional news and polling.

Coinbase brings its regulated infrastructure and existing user base to the prediction market space. The exchange could add liquidity and mainstream visibility to the sector.

The platform already serves millions of US customers for crypto trading. Those users now have access to Kalshi’s event contracts without opening separate accounts.

The post Coinbase (COIN) Stock: Exchange Debuts Prediction Markets Nationwide via Kalshi Deal appeared first on Blockonomi.

TLDR

Tesla delivered Q4 earnings of 50 cents per share, surpassing analyst expectations of 45 cents

First annual revenue decline in Tesla history with full-year sales dropping 3% to $94.8 billion

Net income crashed 61% to $840 million as operating costs surged 39% in the quarter

Model S and X production ending to make way for Optimus humanoid robot manufacturing

Robotaxi service set to launch in seven additional U.S. cities during first half of 2026

Tesla delivered better-than-expected fourth-quarter results but couldn’t escape a historic first. The electric vehicle maker posted its first annual revenue decline since going public.

JUST IN: TESLA $TSLA REPORTED EARNINGS

EPS of $0.50 beating expectations of $0.40
Revenue of $24.9B beating expectations of $24.7B

Tesla $TSLA has entered into an agreement to invest ~$2 Billion into the xAI Series E financiang round pic.twitter.com/jJfOGSdvGW

— Evan (@StockMKTNewz) January 28, 2026

The company reported adjusted earnings of 50 cents per share versus the 45-cent consensus. Revenue reached $24.90 billion, topping the $24.79 billion forecast. Shares climbed 2% in after-hours trading.

The celebration was short-lived. Full-year revenue dropped 3% to $94.8 billion from $97.7 billion in 2024. Fourth-quarter revenue also fell 3% year-over-year.

Automotive Sales Struggle Under Pressure

The auto division took the hardest hit. Q4 automotive revenue plummeted 11% to $17.7 billion from $19.8 billion the previous year.

Vehicle deliveries sank 16% in the fourth quarter and 8.6% for the full year. Competition from BYD in China and other manufacturers worldwide squeezed market share.

Net income told a brutal story. Quarterly profits collapsed 61% to $840 million from $2.1 billion a year earlier. Operating expenses jumped 39%, driven by AI and research investments.

CEO Elon Musk’s political involvement created unexpected problems. His work with President Trump and support for controversial European political figures triggered consumer boycotts throughout 2025.

The aging vehicle lineup didn’t help. Model S debuted in 2012 and Model X in 2015, making both products outdated in a rapidly evolving market.

Shift to Autonomy and Robotics

Musk announced the end of Model S and X production. Factory lines in Fremont, California will be retooled for Optimus humanoid robot manufacturing.

“We’re really moving into a future that is based on autonomy,” Musk told investors. He warned of heavy capital spending ahead.

CFO Vaibhav Taneja forecast $20 billion in capital expenditures. The money will fund new factories, Optimus development, and AI infrastructure.

The Robotaxi ride-hailing app launched in 2025 with pilot operations in Austin, Texas. Tesla recently removed human safety drivers from select vehicles for fully autonomous passenger trips.

Expansion plans target seven more markets in early 2026: Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas.

Production tooling has started for the Cybercab. The two-seat autonomous vehicle eliminates steering wheels and pedals entirely.

Tesla will unveil Optimus Gen 3 this quarter. The company calls it the first version designed for mass production. The bipedal robot targets applications from factory floors to home care.

Other Segments Show Growth

Energy generation and storage revenue jumped 25% to $3.84 billion. Services and other revenue grew 18% to $3.37 billion.

Tesla invested approximately $2 billion in xAI, Musk’s artificial intelligence startup. The investment came as part of xAI’s $20 billion funding round, which included Nvidia and Cisco.

The partnership aims to enhance Tesla’s AI product development and deployment capabilities. Wall Street analysts maintain a Hold rating on TSLA stock with a consensus price target of $406.87.

The post Tesla (TSLA) Stock: Q4 Earnings Beat With First Annual Revenue Decline appeared first on Blockonomi.

TLDR

Tesla discontinues Model S and Model X after years of production at Fremont facility

Factory lines will produce Optimus humanoid robots with target of 1 million units annually

Luxury models represented just 3% of Tesla’s total vehicle deliveries in 2025

Third generation Optimus robot launches Q1 2026 as first mass production design

Tesla posted first-ever annual revenue decline as EV competition intensifies globally

Tesla announced the end of Model S and Model X vehicle production on Wednesday during its fourth-quarter earnings call. CEO Elon Musk said the company will convert manufacturing lines at its Fremont, California facility to build Optimus humanoid robots.

“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk told investors. Customers wanting to purchase either model should order immediately before production ends completely.

The Model S sedan first rolled off production lines in 2012. Tesla launched the Model X SUV in 2015. Both vehicles carried premium pricing, with the Model S starting at $95,000 and the Model X at $100,000.

These luxury vehicles accounted for a small portion of Tesla’s business. Together, they represented only 3% of the company’s 1.59 million vehicle deliveries last year. The more affordable Model 3 and Model Y dominated sales at 97% of total deliveries.

Tesla has cut prices on Model S and X in recent years. Increased competition in the global electric vehicle market forced the company to adjust its pricing strategy. The Model 3 now starts at $37,000, while the Model Y begins at $40,000.

Company Reports First Annual Revenue Decline

Tesla revealed its first annual revenue decline on record in Wednesday’s earnings report. Sales decreased in three of the last four quarters. The company introduced cheaper versions of the Model 3 and Model Y late in 2025.

Musk is shifting focus away from traditional electric vehicles. The CEO wants to emphasize driverless cars and humanoid robots. Tesla currently generates virtually no revenue from these future-focused products.

Fremont Factory Gets Robot Production Line

The Fremont facility will receive a complete production overhaul. Musk said Tesla plans to install a 1 million unit per year manufacturing line for Optimus robots. The humanoid robot requires an entirely new supply chain with no overlap from automotive production.

Tesla will increase employment at the Fremont location. The company expects higher total output from the facility after the conversion.

The automaker plans to reveal the third generation Optimus robot in the first quarter of 2026. Tesla described this version as its first design built for mass production. Musk acknowledged the robot remains in research and development stages.

Tesla envisions Optimus as a bipedal robot capable of performing various tasks. The company sees potential applications from manufacturing work to childcare services.

Musk addressed Tesla’s artificial intelligence chip development during the call. The company is creating fifth-generation AI processors known as AI5 chips. Tesla currently uses both Nvidia processors and its own chips for AI training.

The CEO stated Tesla won’t sell chips externally until it secures enough supply for its vehicles and robots. He emphasized that AI chips are critical for Optimus functionality. Tesla plans to build its own chip manufacturing facility but not in 2026.

The post Tesla Discontinues Model S and X to Focus on Optimus Robot Production appeared first on Blockonomi.

TLDR

Federal Reserve held interest rates at 3.5%-3.75% Wednesday, pausing cuts for first time since July

US dollar fell to four-year lows following its worst annual showing since 2017

Stephen Miran and Chris Waller dissented, preferring a 25-basis-point rate reduction

Bitcoin traded near $89,500 after the decision while gold climbed to $5,300 per ounce

Probability of March rate cut stands at 16%, with April odds at 30%

The Federal Reserve kept interest rates steady on Wednesday at 3.5% to 3.75%. The Federal Open Market Committee voted to pause rate changes for the first time since July.

SUMMARY OF FED DECISION (1/28/2026):

1. Fed halts rate cuts for the first time since July 2025

2. Fed says inflation remains "somewhat elevated"

3. Two Fed Governors dissent in favor of a 25 bps cut

4. Unemployment rate has shown "some signs of stabilization"

5. Fed…

— The Kobeissi Letter (@KobeissiLetter) January 28, 2026

The decision matched market predictions. Traders had priced in a 99% probability of no rate movement before the meeting.

Fed officials cited ongoing inflation concerns. The policy statement highlighted low job gains and stabilizing unemployment. The central bank described inflation as “somewhat elevated.”

Two committee members broke from the majority. Stephen Miran, recently appointed by President Trump, voted for a quarter-point cut. Chris Waller also favored reducing rates by 25 basis points.

Bitcoin remained close to $89,500 following the announcement. Stock markets showed minimal reaction. Gold prices pushed higher, nearing record levels at $5,300 per ounce.

Currency Markets Show Weakness

The US dollar continued its downward trend this week. The Bloomberg Spot Dollar Index dropped to its lowest point in four years. The currency recorded its worst yearly performance since 2017.

President Trump has repeatedly called for lower interest rates. When asked about the dollar’s decline, he responded that “the value of the dollar is great.”

Market observers see strategy in the currency movement. The Kobeissi Letter called it evidence that “President Trump is willing to tolerate a weaker Dollar to push rates lower and boost US exports.”

David Ingles from Bloomberg TV APAC shared this view. He noted Trump may be “cutting rates on the Fed’s behalf by letting the dollar slide.”

Impact on Digital Assets

Cryptocurrency prices have fluctuated around Fed decisions. Traders are divided on how future policy changes will affect digital asset valuations.

Analysts identify a negative correlation between Bitcoin and the US Dollar Index. Stronger dollar values typically pressure cryptocurrencies lower. A declining dollar often supports risk assets.

Hong Kong-based platform OSL has documented this inverse relationship. Their research suggests dollar strength reflects shifts in investor risk appetite.

Julien Bittel from Global Macro Investor described a strong dollar as harmful to risk assets. He warned it can significantly tighten global financial conditions.

Rate cut expectations have changed substantially. November prediction markets showed 40% odds for a January cut. Those probabilities collapsed to zero by meeting time.

Future rate cut chances remain low. CME FedWatch shows 16% probability for a March reduction. The odds improve slightly to 30% for April.

Nick Ruck from LVRG Research analyzed the decision’s market effects. He explained the rate hold stems from inflation worries and economic stabilization. He warned this could trigger short-term volatility in cryptocurrency markets.

Jerome Powell held his press conference at 2:30 pm ET after the meeting. Market participants watched closely for signals about the Fed’s future approach.

The post Fed Rate Decision January 2026: No Change as Inflation Persists appeared first on Blockonomi.

TLDR

SK Hynix surpassed Samsung Electronics in operating profit for the first time in 2025.

The company posted a record operating profit of 47.2 trillion won, exceeding Samsung’s 43.6 trillion won in 2025.

SK Hynix maintains leadership in high-bandwidth memory (HBM), a critical chip for AI processors and servers.

Despite competition from Samsung and Micron, SK Hynix retains its dominant position in the HBM market.

Analysts predict SK Hynix’s leadership in HBM will continue, driven by high demand for AI-related memory solutions.

SK Hynix has surpassed Samsung Electronics in operating profit for the first time in 2025, marking a key milestone in its growth. This achievement highlights SK Hynix’s dominance in the high-bandwidth memory (HBM) market, crucial for AI chipsets.

SK Hynix’s Strategic Lead in High-Bandwidth Memory

According to a report by CNBC, SK Hynix’s success is largely attributed to its leadership in HBM, a specialized chip vital for AI processors and servers. The company posted a record operating profit of 47.2 trillion won in 2025, surpassing Samsung’s 43.6 trillion won. HBM is in high demand due to its use in advanced AI applications, including those by Nvidia.

According to MS Hwang from Counterpoint Research, SK Hynix’s “quality and supply of HBMs” have been pivotal in supporting the AI infrastructure boom. Despite competition from Samsung and Micron, SK Hynix has retained its market lead in this area.

While Samsung has recently regained the top spot in memory revenue rankings, SK Hynix remains a dominant force in HBM production. Analysts expect this leadership to continue, especially with the growing demand for memory chips in AI servers. Despite this, Samsung is catching up with the launch of its HBM4 chips, which analysts predict will increase its competitiveness in the AI market.

Will SK Hynix’s $10B Investment in AI Add More Pressure to Samsung?

As we had reported earlier, SK Hynix has also announced plans to launch a new U.S.-based company focused on AI solutions, committing $10 billion to the venture. This new entity, tentatively called the “AI Company,” will focus on accelerating AI development and forming strategic partnerships with U.S. investors.

SK Hynix plans to restructure its California-based subsidiary, Solidigm, to separate its AI business from its SSD operations. The U.S. move signals SK Hynix’s ambition to strengthen its AI presence globally, as it expands its footprint beyond memory solutions.

The new AI-focused company will play a central role in advancing SK Hynix’s global push into AI, aligning with the growing demand for AI-driven memory technologies. SK Hynix’s expertise in HBM and other AI technologies positions the company as a key player in this rapidly expanding market.

The post SK Hynix Outperforms Samsung in Annual Profit for the First Time appeared first on Blockonomi.

TLDR

Nvidia CEO Jensen Huang is waiting for China’s approval to sell the H200 AI chip in the country.

Huang remains optimistic about the approval process, citing strong demand for the H200 in China.

The Chinese government has already approved ByteDance, Alibaba, and Tencent to purchase over 400,000 H200 chips.

Despite approvals, restrictions have been placed on the purchase process, with some companies awaiting further clarification.

Nvidia’s H200 chip is expected to strengthen both American leadership in AI and China’s AI development.

Nvidia CEO Jensen Huang confirmed that the company is waiting for final approval from China to sell its H200 AI chip. During his recent visit to Taipei, Huang discussed Nvidia’s efforts to expand its presence in China. He expressed hope that the Chinese government would grant permission for the sale of the powerful chip, which is designed to support AI applications.

Nvidia’s Efforts to Expand in China

Huang mentioned that the licensing process for the H200 chip is nearly complete. He emphasized that the H200 would benefit both American technological leadership and the Chinese market. “The customers would very much like to have H200,” Huang stated, highlighting strong demand from local businesses.

Despite the uncertainty of the approval process, he remains optimistic and looks forward to a favorable decision from the Chinese government. He also noted that the H200 chip could help solidify Nvidia’s global role in AI development.

“This is very good for American technology leadership. It’s also very good for the Chinese market,” Huang said. As China remains a key player in the global technology space, Nvidia is keen to establish a stronger foothold in the country, especially with its cutting-edge AI solutions.

Huang’s Remarks Align with China’s Shifting Approach to AI Chip Investments

Huang’s comments come in light of new developments reported by Blockonomi this week, which detail China’s shift in its stance towards Nvidia’s AI chips. The Chinese government has approved three of China’s largest tech companies, ByteDance, Alibaba, and Tencent, to purchase Nvidia’s H200 chips.

The approval of over 400,000 H200 chips to these firms marks a step in China’s AI investments. However, the Chinese government has placed certain restrictions on the purchase process. Some companies are still awaiting further clarification on the terms before placing orders, suggesting that the full rollout of Nvidia’s H200 chips in China may take time.

The post Nvidia CEO Reveals Final Step for H200 AI Chip License Approval in China appeared first on Blockonomi.

TLDR:

Format does not alter securities law application; tokenized assets face same registration requirements. 

Issuers can maintain master securityholder files onchain or use crypto assets as transfer notification tools. 

Third-party custodial models create security entitlements while synthetic models provide exposure only. 

Security-based swaps require registration and exchange execution for sales to non-eligible participants.

 

The Securities and Exchange Commission’s divisions have issued a comprehensive statement clarifying how federal securities laws apply to tokenized securities.

The Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets outline two primary categories: issuer-sponsored and third party-sponsored tokenized securities.

This framework addresses the growing need for regulatory clarity as blockchain technology becomes more prevalent in capital markets. The statement emphasizes that format does not alter securities law application.

Issuer-Sponsored Models Define Direct Tokenization Approaches

Issuers can tokenize securities by formatting them as crypto assets while maintaining master securityholder files on blockchain networks.

The integration of distributed ledger technology allows onchain transfers to reflect ownership changes in the official records. This approach differs from traditional securities only in recordkeeping methods, not legal status.

The same class of securities may exist in multiple formats simultaneously. Holders can convert between tokenized and traditional formats based on their preferences.

Securities Act registration requirements remain unchanged regardless of whether securities use onchain or offchain recordkeeping systems.

Another model separates the crypto asset from the master securityholder file entirely. The issuer maintains ownership records offchain while using crypto assets as transfer notification mechanisms.

Security holders receive crypto assets that trigger ownership updates rather than directly representing the securities themselves.

These arrangements allow transfers to occur through blockchain transactions that prompt issuers to update official records.

The crypto asset serves as a signaling device rather than the actual security representation. Offchain databases remain the authoritative source for ownership information in this structure.

Third-Party Tokenization Creates Additional Asset Categories

Custodial tokenized securities represent one third-party approach where crypto assets evidence ownership interests in underlying securities held in custody.

These tokenized security entitlements function similarly to traditional custody arrangements but use blockchain technology for record maintenance. The underlying securities remain separate from the crypto asset representation.

Transfer of these crypto assets triggers updates to entitlement holder records maintained by the custodian. Some implementations integrate blockchain directly into recordkeeping systems while others use onchain transfers to update offchain records. Both approaches create indirect ownership structures through security entitlements.

Synthetic tokenized securities provide exposure without conveying actual ownership rights in referenced securities. Linked securities and security-based swaps fall into this category. These instruments are obligations of the third party rather than the underlying security issuer.

Security-based swaps face additional restrictions under federal law. Sales to non-eligible contract participants require effective registration statements and execution on national securities exchanges.

The classification depends on whether the instrument meets swap definition requirements and satisfies one of three specified prongs related to security indices, individual securities, or issuer-specific events. Economic reality rather than naming conventions determines proper classification.

The post SEC Clarifies Tokenized Securities Framework: Issuer and Third-Party Models Explained appeared first on Blockonomi.

TLDR:

STRC provides 11% fiat-denominated annual income with senior claim status on Strategy’s Bitcoin holdings. 

The instrument bypasses traditional banking infrastructure by routing capital directly through Bitcoin purchases. 

Institutional investors view STRC as competition for credit funds, municipal bonds, and money market funds. 

Product creates feedback loop where increased demand drives Bitcoin purchases and strengthens collateral base.

 

Strategy’s newly introduced STRC represents a senior, Bitcoin-backed financial instrument offering double-digit yields to investors.

The structure combines Michael Saylor’s cryptocurrency accumulation strategy with traditional income generation mechanisms.

Market observers note this development as capital markets position themselves around digital asset-backed securities that compete directly with conventional fixed-income products.

Bitcoin-Backed Yield Structure Targets Traditional Finance

STRC operates as a senior claim instrument tied to Strategy’s Bitcoin holdings while delivering fiat-denominated returns. According to social media commentary from Adam Livingston, the product’s structure, stating it offers “11% fiat-denominated annual income” with “senior claim status on a Bitcoin-levered balance sheet.”

The mechanism channels investor capital through the Strategy’s Bitcoin acquisition framework before returning yield streams in traditional currency denominations.

THE BANKS ARE MELTING: SAYLOR’S STRC TURNS BITCOIN INTO A FINANCIAL DEATH LASER

This is a capital markets extinction event.

STRC is a Bitcoin-backed, yield-bearing, senior instrument that eats bonds, front-runs banks, and redefines what capital even means.

It offers… pic.twitter.com/9JADz0Vhes

— Adam Livingston (@AdamBLiv) January 29, 2026

The product structure maintains senior positioning within Strategy’s capital hierarchy. This status provides holders with priority claims relative to equity investors.

The Bitcoin collateral base supports the yield generation while maintaining exposure to cryptocurrency price dynamics. Livingston described this as “asymmetric yield backed by thermodynamic certainty and 24/7 liquidity pipes.”

Traditional banking products currently offer minimal returns on deposit accounts. Regional institutions typically provide near-zero interest rates alongside extended settlement periods for basic transactions.

STRC presents an alternative that combines cryptocurrency exposure with income generation outside conventional banking infrastructure.

The instrument bypasses fractional reserve banking systems entirely. Capital flows directly from investors to Bitcoin purchases through Strategy’s operations.

Livingston explained that the structure “pulls dollars out of the fiat system, routes them through Strategy’s Bitcoin engine, converts them into Bitcoin-backed yield, and returns them to investors as streams of programmable fiat income.” Returns then circulate back to participants without engaging traditional financial intermediaries.

Capital Reallocation Potential Across Fixed-Income Markets

Market participants view STRC as competition for various fixed-income categories. The product competes with credit funds, municipal bonds, certificates of deposit, and money market funds.

Institutional allocators evaluate the instrument against existing portfolio positions in these traditional categories. Livingston posed the question: “Why would you have a savings account instead of yielding 11% with STRC?”

Sovereign wealth funds examine STRC for combined Bitcoin exposure and cash flow generation. Family offices consider the structure’s senior positioning and non-dilutive characteristics for portfolio allocation.

International institutions assess the product as access to dollar-denominated income while maintaining cryptocurrency-linked returns. According to Livingston, “Foreign institutions see STRC as a way to escape local currency erosion while collecting USD-denominated income.”

The positive feedback mechanism operates through several stages. Increased STRC demand drives additional Bitcoin acquisitions by Strategy.

Higher Bitcoin allocations strengthen the collateral base supporting further issuance. Expanded issuance then reinforces infrastructure development around Bitcoin-centric capital markets.

Livingston characterized this as a chain reaction of “more Bitcoin purchases, higher mNAV, stronger collateral base, more STRC issuance.”

This cycle potentially redirects capital away from traditional banking deposits and government securities. The reallocation reflects investor preferences for higher-yielding alternatives backed by cryptocurrency assets.

As STRC gains traction, competitive pressure mounts on conventional financial products to adjust their value propositions or risk continued capital outflows to digital asset-backed instruments.

The post Strategy’s STRC Bitcoin-Backed Instrument Challenges Traditional Fixed-Income Markets appeared first on Blockonomi.

TLDR

Tesla plans to more than double its capital spending to $20 billion, focusing on autonomous vehicles and humanoid robots.

CEO Elon Musk highlighted the shift in focus from traditional EV sales to AI-driven projects and robotics.

The company’s investments will fund production lines for Cybercab, Optimus robots, and new plants for battery production.

Tesla’s valuation is driven by investor confidence in Musk’s ambitious plans for robotaxis and humanoid robots powered by AI.

Despite the new focus, Tesla will still rely on human-driven EVs for the majority of its sales in the short term.

Tesla has announced plans to more than double its capital spending to a record $20 billion. According to a report by Reuters, CEO Elon Musk confirmed that much of the investment would go toward projects like fully autonomous vehicles, humanoid robots, and battery production. This shift in focus comes as Tesla moves away from its traditional electric vehicle (EV) sales, following its loss of the global EV sales lead to China’s BYD.

Tesla’s Strategic Investment in New Business Lines

Tesla’s increased spending will primarily fund production lines for the Cybercab, a fully autonomous vehicle without steering wheels and pedals. Other key areas of investment include the development of Tesla’s Optimus humanoid robots and new plants for battery and lithium production.

Musk highlighted that the shift towards these projects represents a “very big capex year” for Tesla. He explained that the company is making “big investments for an epic future,” emphasizing that the company is not just modernizing its existing business but venturing into entirely new markets.

Despite this, Tesla continues to rely on human-driven EVs for the majority of its sales. However, its valuation remains the highest among automakers, more in line with tech companies. Much of Tesla’s value is driven by investor belief that Musk will succeed in delivering on his ambitious plans, particularly the rollout of robotaxis and humanoid robots powered by advanced AI.

Record Capital Spending and Focus on AI Technology

Tesla’s $20 billion investment is more than double the $8.5 billion spent in 2023. Chief Financial Officer Vaibhav Taneja noted that Tesla has over $44 billion in cash and investments available to fund these ventures. He also indicated that further spending may be financed through debt or other means, suggesting that this will not be a one-time increase in capital spending.

Musk admitted that these investments were not made “for fun,” but out of “desperation” to meet critical technology needs, including the development of lithium and cathode refining infrastructure. While Tesla remains focused on its EV business for the time being, its future investments clearly align with its goal to expand into AI-driven technologies and humanoid robots.

The company’s shift towards fully autonomous vehicles and robotic products underscores its evolving role in the tech industry. Musk’s ambitious plans signal that Tesla’s focus is now firmly on revolutionizing the future of transportation and robotics.

The post Tesla Doubles Capital Spending, Shifts Focus to Autonomous Vehicles and Humanoid Robots appeared first on Blockonomi.

TLDR:

Powell explicitly stated “a rate hike is not anyone’s base case” marking the definitive end of tightening 

Core PCE inflation runs slightly above 2% when tariff effects excluded, giving Fed room for future easing 

FOMC vote was 10-2 with two members favoring cuts and zero pushing for hikes during latest policy meeting 

Fed expects tariff-driven inflation to peak mid-2026 then decline, shifting focus to timing of rate cuts

 

The Federal Reserve maintained interest rates at 3.5% to 3.75% during its latest meeting, with Chair Jerome Powell explicitly stating that rate hikes are no longer under consideration.

The FOMC vote resulted in a 10-2 decision, where two members favored cuts while none pushed for increases. Powell’s statement that “a rate hike is not anyone’s base case” marks a clear shift in monetary policy direction.

The central bank now focuses on determining the appropriate timing for potential rate cuts rather than further tightening.

Fed Pivots From Tightening to Wait-and-See Approach

Powell emphasized that inflation remains elevated but attributed most excess price pressures to tariffs rather than underlying demand.

According to the Fed chair, “core PCE excluding tariff effects is running only slightly above 2%” target. The central bank expects tariff-driven inflation to peak by mid-2026 before declining later this year. This trajectory could provide the Fed with room to ease policy conditions.The economy continues to demonstrate resilience beyond Fed expectations. Powell noted that “the economy has once again surprised with its strength” while unemployment data shows signs of stabilization.

The Fed chair stated that “current policy is already restrictive enough” to address inflation concerns. The central bank believes its existing stance adequately manages price pressures without requiring additional tightening measures.

Future policy decisions will proceed on a meeting-by-meeting basis. Powell confirmed that “no decisions have been made about future cuts” while emphasizing hikes are no longer realistic.

According to a post from Bull Theory, Powell’s remarks confirmed that “tightening is finished” and the question has shifted to “how long do we hold before we cut.”

FED POWELL JUST CONFIRMED THAT RATE HIKES ARE OFF THE TABLE.

Jerome Powell’s FOMC press conference just ended and here's everything the Fed told the market, in simple terms:

– The Fed held rates at 3.5%–3.75%
– The vote was 10–2, meaning only two members wanted a cut,… pic.twitter.com/htB6m1CIVD

— Bull Theory (@BullTheoryio) January 28, 2026

The Fed chair addressed several topics beyond monetary policy. He stated “the Fed does not comment on the dollar” and mentioned limited evidence of aggressive foreign investor hedging.

On fiscal matters, Powell called “the U.S. budget deficit unsustainable” and urged prompt action. This comment contributed to gold reaching new highs as investors sought alternative assets.

Policy Outlook Suggests Eventual Easing

Powell maintained that “the Fed has not lost independence” despite political pressures. He expressed confidence that the central bank “will continue making decisions objectively” going forward.

The chair characterized tariffs as “likely a one-time price increase” rather than persistent inflation. Powell stated “most inflation overruns are coming from tariffs, not demand” which suggests conditions may improve.

The Fed chair suggested “policy may now be loosely neutral or somewhat restrictive” given recent adjustments. He acknowledged “the Fed has already moved a good way on rates” from previous levels.

Powell emphasized that “no one expects the next move to be a hike” among committee members. The direction clearly points toward potential easing rather than further restriction.

Powell dismissed concerns about the recent government shutdown. He expects “any effects from the shutdown should be reversed this quarter” as economic activity normalizes.

The Fed views the shutdown as a temporary disruption rather than a structural economic risk. This assessment reinforces the central bank’s confidence in underlying economic stability.

Financial conditions are no longer being actively tightened. The system transitions from restriction toward stabilization as the Fed holds its position.

Markets now anticipate when the easing cycle will begin rather than if additional tightening will occur. The meeting delivered a definitive message that the tightening cycle has concluded.

The post Powell Declares Rate Hikes Off the Table as Fed Confirms End of Tightening Cycle appeared first on Blockonomi.

TLDR

The SEC has clarified that tokenized securities are considered “securities” under U.S. federal law.

Tokenized securities must comply with the same registration, disclosure, and compliance rules as traditional securities.

The SEC is working to provide a legal framework as tokenized securities grow in the digital asset market.

Tokenized securities are divided into two categories: issuer-sponsored and third-party sponsored, both subject to federal laws.

SEC Commissioner Hester Peirce reiterated that “tokenized securities are still securities,” emphasizing regulatory consistency.

The U.S. Securities and Exchange Commission (SEC) has issued new guidelines clarifying the status of tokenized securities. According to the SEC, these digital assets will be subject to federal securities laws. This move aims to provide clearer regulation for tokenized securities as the industry continues to grow.

Tokenized Securities Under SEC Regulation

The SEC confirmed that tokenized securities are financial instruments defined as “securities” under federal law. These assets will be subject to similar registration, disclosure, and compliance requirements as traditional securities.

The agency stated that, despite the digital format, tokenized securities will maintain the same legal obligations. The SEC’s position on tokenized securities emphasizes the importance of compliance with federal regulations.

These securities, despite being represented as crypto assets, will require issuers to adhere to similar transparency and regulatory standards as traditional securities. The agency has worked to create clarity for the growing market of digital asset securities.

SEC’s Ongoing Efforts for Regulatory Clarity

The SEC’s guidance reflects its ongoing efforts to define the legal framework for tokenized securities. In previous statements, SEC Commissioner Hester Peirce has reaffirmed that “tokenized securities are still securities.”

The SEC aims to provide clarity as U.S. legislators work to pass a market structure bill, which will further define the roles of the SEC and other regulatory bodies. The agency’s latest guidance also divides tokenized securities into two main categories: issuer-sponsored and third-party sponsored.

Issuer-sponsored tokens directly integrate blockchain into ownership records, while third-party-sponsored tokens represent an indirect claim on a security. Both categories are subject to federal securities laws, ensuring that the same legal standards apply across these tokenized assets.

The post SEC Clarifies Rules for Tokenized Securities Under Federal Law appeared first on Blockonomi.

TLDR:

USDY now operates on Sei Network, offering users Treasury-backed yields through fast blockchain infrastructure. 

Non-U.S. users gain direct access to tokenized U.S. Treasuries without intermediaries via Sei’s platform. 

Developers can integrate USDY as collateral and yield primitives into DeFi protocols across Sei ecosystem. 

The deployment expands USDY’s multichain presence, reinforcing its role as a foundational RWA primitive. 

 

Ondo Finance has deployed its U.S. Dollar Yield Token (USDY) on Sei Network, marking another step in the platform’s multichain expansion strategy.

The integration brings tokenized U.S. Treasury exposure to Sei’s high-performance blockchain infrastructure. USDY represents the largest tokenized U.S. Treasuries product by total value locked.

This deployment enables both individual and institutional users to access yield-bearing dollar instruments through Sei’s fast execution layer.

High-Performance Infrastructure Meets Real-World Assets

Sei Network’s architecture provides near-instant finality alongside parallelized execution capabilities for financial applications.

The blockchain’s design supports high transaction throughput without compromising reliability or speed. USDY now operates natively on this infrastructure, offering users direct access to Treasury-backed yields.

USDY, Ondo’s flagship tokenized U.S. Treasury token, is now live on @SeiNetwork.

Sei’s high-performance blockchain powers global, onchain finance. With USDY, the network now expands its RWA capabilities with access to the largest tokenized U.S. Treasuries by TVL.

Together,… pic.twitter.com/XLiq8Z5rEF

— Ondo Finance (@OndoFinance) January 28, 2026

The token delivers yield backed by short-term U.S. Treasuries and cash instruments. Non-U.S. individuals and institutions can access these tokenized securities without traditional intermediaries.

Sei’s performance capabilities enable capital-efficient operations for users managing Treasury exposure. The combination provides sustainable yield generation while maintaining price stability.

Ondo Finance’s President, Ian De Bode, commented on the strategic expansion in the official announcement. “Expanding Ondo USDY to Sei’s high-performance blockchain broadens global access to tokenized U.S. Treasuries,” he stated.

De Bode noted that individuals and enterprises can leverage this sustainable yield source on Sei. He described the move as a key step toward establishing USDY as a core primitive of onchain finance.

The Sei Development Foundation’s Executive Director, Justin Barlow, addressed the integration’s practical applications.

“Introducing Ondo USDY to the speed and throughput of Sei will give users access to a high-quality, Treasury bills backed asset,” Barlow explained.

He outlined potential uses, including borrowing, lending, cash management, and cross-border payments. Barlow characterized the addition as another step in bridging traditional finance and DeFi on performant infrastructure.

Developer Integration and DeFi Composability

USDY’s deployment on Sei unlocks new opportunities for protocol developers building financial applications. The token integrates with native Sei applications, enabling advanced yield strategies and treasury management solutions. Developers can incorporate USDY into capital market products with minimal friction.

The institutional-grade backing positions USDY as reliable collateral across multiple contexts. Lending protocols, trading platforms, and liquidity provision systems can utilize the token.

Sei builders gain access to productive collateral and treasury assets for protocol development. The seamless integration process accelerates deployment timelines for developers.

USDY’s composability extends into DeFi primitives across the Sei ecosystem. Protocol developers can build yield strategies leveraging the token’s Treasury backing.

The integration reduces complexity for teams incorporating real-world assets into decentralized applications. This accessibility supports innovation in onchain financial products.

The deployment continues USDY’s expansion across major blockchain networks. Each integration enhances accessibility for global users seeking Treasury exposure.

The growing multichain footprint reinforces USDY’s position as a foundational real-world asset primitive. Ondo Finance plans additional ecosystem partnerships to expand USDY’s utility on Sei Network.

 

The post Ondo Finance Expands USDY to Sei Network, Enabling Global Access to Tokenized Treasuries appeared first on Blockonomi.

TLDR:

Securitize filed public Form S-4 registration statement advancing its business combination with CEPT toward completion.

Revenue reached $55.6 million for nine months ending September 2025, marking an 841% increase from prior year period.

Full-year 2024 revenue totaled $18.8 million, representing a 129% increase compared to $8.2 million in 2023.

Transaction completion requires CEPT shareholder approval and SEC effectiveness before public listing can proceed.

 

Securitize has publicly filed a registration statement with the Securities and Exchange Commission for its proposed business combination with Cantor Equity Partners II. 

The Form S-4 filing marks a significant step toward the tokenization platform becoming a publicly listed company. 

The registration statement includes updated financial data showing substantial revenue growth through September 2025. This development follows the company’s confidential draft submission in November 2025.

Financial Performance Shows Strong Revenue Growth

The registration statement reveals Securitize achieved total revenue of $55.6 million for the nine months ending September 30, 2025. 

According to the filing, this figure represents “an 841% increase compared to $5.9 million for the nine months ended September 30, 2024.” The company’s revenue streams span tokenized securities, fund administration, and digital-asset infrastructure businesses.

For the full year 2024, Securitize reported total revenue of $18.8 million. As disclosed in the registration statement, this amount marked “a 129% increase compared to $8.2 million for the year ended December 31, 2023.” The financial data demonstrates consistent growth across the company’s operating segments.

The registration statement contains historical financial information that provides transparency for potential investors. 

These figures offer insight into the company’s business trajectory and market position in the tokenization sector.

Transaction Progress and Regulatory Review

Securitize Holdings Inc., a wholly owned subsidiary of Securitize, submitted the public filing as part of the business combination process. 

The registration statement includes a combined proxy statement and prospectus for shareholders to review. 

Cantor Equity Partners II, trading on Nasdaq under the ticker CEPT, is a special purpose acquisition company.

The proposed transaction requires approval from CEPT shareholders before completion. Additionally, the Securities and Exchange Commission must declare the registration statement effective. The filing remains under SEC review as part of the standard regulatory process.

Upon closing, Securitize Holdings Inc. is expected to become a publicly traded entity. The transaction is subject to customary closing conditions beyond shareholder approval and regulatory clearance. 

Securitize describes itself as “the world’s leading platform for tokenizing real-world assets.” The company positions its technology to serve the growing demand for asset tokenization.

Cantor Equity Partners II is sponsored by an affiliate of Cantor Fitzgerald. The partnership aims to bring Securitize’s tokenization technology to public markets. 

The transaction timeline depends on completing the SEC review process and obtaining necessary approvals.

The post Securitize Files Public S-4 Registration for Cantor Equity Partners II SPAC Merger appeared first on Blockonomi.

TLDR;

Stablecoin platforms offer yields near 4.9% while major banks provide near-zero interest on deposits. 

White House facilitates meetings between crypto executives and traditional banking leaders on regulation. 

Crypto firms operate with minimal staff and overhead, passing Treasury bill yields directly to users. 

Banks seek regulatory requirements forcing stablecoin issuers to obtain banking licenses before offering yield.

 

Traditional banking institutions are confronting a new competitive threat as cryptocurrency startups offer substantially higher yields on stablecoin deposits compared to conventional savings accounts.

The emerging conflict has prompted discussions at the highest levels of government, with industry leaders from both sectors invited to address concerns about the shifting financial landscape and its potential impact on the established banking system.

Regulatory Tensions Mount Over Yield Disparities

The stark contrast in returns has become a central point of contention. Stablecoin platforms are providing yields approaching 4.9 percent on dollar-denominated digital assets, while major banks offer near-zero interest rates on traditional deposit accounts.

This gap has created pressure on established financial institutions that maintain extensive physical infrastructure and legacy systems dating back decades.

Industry observer Adam Livingston highlighted the situation on X, noting that crypto firms operate with minimal overhead while backing their stablecoins with Treasury bills.

These companies employ small teams and modern technology stacks, enabling them to pass more yield directly to users.

The banks are PISSING THEMSELVES.

They’ve just realized that some autistic crypto startup in a WeWork with $20 million in T‑Bills and a React front-end is about to nuke the entire $17 trillion U.S. deposit base…

…by offering 4.9% yield on a stablecoin while JPMorgan gives you…

— Adam Livingston (@AdamBLiv) January 28, 2026

Meanwhile, traditional banks support thousands of branches and employees while generating revenue through credit products and various fees.

The operational differences extend beyond simple cost structures. Stablecoin providers offer continuous redemptions and on-chain transactions that settle within seconds, whereas traditional banking systems rely on older infrastructure.

This technological advantage allows newer entrants to provide services without the regulatory burden and compliance costs that established institutions face daily.

Banking representatives have expressed concerns about financial stability to regulators and lawmakers. However, critics argue these objections primarily protect existing business models rather than address genuine systemic risks.

The debate centers on whether regulatory frameworks should require stablecoin issuers to obtain banking licenses before offering yield products.

White House Engagement Signals Policy Crossroads

Recent developments indicate the administration is taking an active role in mediating between traditional finance and cryptocurrency sectors.

Representatives from Circle and Coinbase have been invited to meet with major banking executives to discuss the future of dollar-based financial products.

These conversations represent a significant shift in how policymakers approach the integration of blockchain technology into mainstream finance.

The discussions carry substantial implications for how Americans interact with their savings. Proponents of stablecoin yields argue that technology should enable better returns for depositors, particularly when underlying assets consist of government securities.

Traditional banks counter that their services provide deposit insurance and consumer protections that justify lower returns.

Some observers view stablecoins as merely an intermediate step toward broader adoption of decentralized assets.

The argument suggests that once users become comfortable with digital currencies earning modest yields, they may explore alternative assets offering different risk-return profiles.

This progression could fundamentally alter how individuals store and grow their wealth outside conventional banking channels.

The outcome of these regulatory deliberations will likely determine whether competition drives innovation or whether established players secure protective measures.

Market participants across both sectors await clarity on rules governing yield-bearing digital dollar products and their place within the financial system.

The post Stablecoin Yields Challenge Traditional Banking as White House Brokers Industry Talks appeared first on Blockonomi.

TLDR:

Chinese-language networks processed $16.1 billion in illicit crypto funds throughout 2025 operations. 

Network growth outpaced centralized exchanges by 7,325 times since 2020, capturing 20% market share. 

Black U services process high-value transactions in 1.6 minutes using automated laundering systems. 

Six distinct service types form comprehensive infrastructure from entry points to final integration.

 

Chinese-language money laundering networks have emerged as dominant players in cryptocurrency laundering operations.

These networks processed $16.1 billion in illicit funds during 2025, accounting for roughly 20% of all known crypto money laundering activity.

The operations span 1,799 active wallets and process approximately $44 million daily, according to blockchain analytics firm Chainalysis.

Rapid Growth Outpaces Traditional Laundering Channels

The expansion of Chinese-language money laundering networks has accelerated at unprecedented rates since 2020. Growth in fund flows to these networks exceeded traditional channels by substantial margins. Compared to centralized exchanges, the networks grew 7,325 times faster over the past five years.

Decentralized finance platforms saw growth rates 1,810 times slower than these networks. Even illicit on-chain transfers between criminal entities grew 2,190 times slower. This rapid scaling demonstrates the efficiency and appeal of these services within criminal ecosystems.

The overall illicit laundering landscape expanded from $10 billion in 2020 to over $82 billion in 2025. Chinese-language networks captured an increasing share of this activity. Their prominence coincides with the declining use of centralized exchanges for laundering purposes.

Tom Keatinge, Director at the Centre for Finance & Security at RUSI, offered insights into this phenomenon. “Very rapidly, these networks have developed into multi-billion dollar cross-border operations offering efficient, value-for-money laundering services,” he stated.

The operations suit transnational organized crime groups across Europe and North America, according to Keatinge.

Capital Controls Drive Unprecedented Network Development

Keatinge attributed the rapid development to an unforeseen consequence of capital controls in China. “Wealthy individuals seeking to move money out of China and evade these controls provide the impetus,” he explained.

This liquidity pool services organized crime groups based in Western countries through professional enablers.

The transition from traditional methods has been dramatic in recent years. Chris Urben, Managing Director at Nardello & Co, described the shift occurring within these networks. “The biggest change in Chinese money laundering networks in recent years is a rapid transition to crypto,” he noted.

Traditional informal value transfer systems like Black Market Peso faced displacement by cryptocurrency. Urben explained that crypto offers an efficient way to discreetly move funds across borders.

The technology eliminates reliance on complex manual networks of informal ledgers in various countries.

Black U services reached $1 billion in processing volume within just 236 days of initial operations. Running point brokers required 843 days while over-the-counter services needed 1,136 days for the same milestone. Money mules took 1,277 days to process their first billion dollars in illicit funds.

Six Service Types Form Comprehensive Laundering Infrastructure

Running point brokers serve as entry channels for illicit funds into the financial system. These operators recruit individuals to rent out bank accounts and digital wallets.

The accounts receive fraudulent proceeds and forward them through the laundering network.

Money mule operations orchestrate complex layering schemes through multiple accounts and transactions. These services advertise capabilities spanning African countries and global payment methods. Vendors emphasize speed and discretion to prevent fund freezes by authorities.

Informal over-the-counter desks circumvent regulatory controls and verification requirements. These services charge premium rates above market prices for unmonitored transfers. Despite advertising “clean funds,” on-chain analysis reveals extensive connections to criminal ecosystems.

Black U services specialize in cryptocurrency from hacking, scams, and theft at discounted rates. Buyers purchase illicit assets 10-20% below market value.

Gambling platforms and money movement services complete the infrastructure through mixing and swapping capabilities.

Enforcement Actions Disrupt Operations But Networks Persist

Recent regulatory actions targeted major facilitators within these networks. The U.S. Treasury sanctioned the Prince Group while FinCEN designated Huione Group as a primary money laundering concern. UK authorities similarly sanctioned entities facilitating these operations.

Enforcement disrupted guarantee platforms that serve as marketplaces connecting vendors and customers. Telegram removed some accounts associated with Huione operations.

However, vendors quickly migrated to alternative platforms without operational interruption.

Keatinge addressed the capabilities gap between criminals and law enforcement regarding cryptocurrency use. “There is a chasm in most countries between the capabilities of criminals and law enforcement,” he stated. Nationally-based laws, border barriers, and poor information sharing create challenges for authorities.

Urben outlined effective investigative strategies for detecting these money laundering networks. “The most effective investigative strategy is to match your investigative tools against the operational approach,” he emphasized.

Open source intelligence combined with blockchain analysis helps investigators map networks and match players to currency movements.

The post Chinese Money Laundering Networks Dominate Crypto Crime, Processing $16.1B in 2025 appeared first on Blockonomi.