Soil has introduced a compliant real-world asset-backed yield protocol for RLUSD on the XRP Ledger, offering institutional-style returns and expanding stablecoin utility.
By Julia Sakovich
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Soil launches the first RWA-backed yield protocol on XRP Ledger | Photo: Unsplash
Soil, developed by ORQO Group, has rolled out what it describes as the first compliant real-world asset (RWA)-backed yield protocol on the XRP Ledger. The protocol allows holders of RLUSD, Ripple’s US dollar-pegged stablecoin, to deposit tokens into onchain vaults, generating fixed returns. Returns are supported by instruments including private credit, tokenized Treasuries, and market-neutral hedging strategies.
The initial $1 million asset pool was filled in under 72 hours, signaling strong demand for regulated yield products within the XRPL ecosystem. Soil plans to launch additional pools in the coming weeks. “The stablecoin market’s transition toward a multi-trillion-dollar ecosystem requires the right infrastructure to deliver institutional-grade yield at scale,” said Nick Motz, highlighting the firm’s vision of expanding RLUSD beyond its traditional payment and settlement functions.
Soil’s approach positions RLUSD as more than a medium of exchange, introducing investment functionality that allows stablecoins to generate predictable returns. Tokenized assets provide onchain access to instruments traditionally reserved for institutional investors, such as private debt and government-backed securities, effectively bridging traditional finance with blockchain-based settlements.
XRPL’s Growing Role in Tokenized Assets
The launch comes as the XRP Ledger recently surpassed Solana in distributed real-world asset value, according to RWA.xyz. XRPL’s recent upgrades, including the activation of a permissioned decentralized exchange (DEX), enable institutions to run gated trading venues restricted to approved participants. These enhancements aim to attract regulated financial actors, facilitating tokenized Treasuries, corporate debt, and other RWAs onchain.
Ripple has also partnered with Aviva Investors to explore tokenization of traditional fund structures, while ongoing XRPL development includes potential native staking mechanisms. Soil’s deployment on XRPL complements these efforts, supporting a broader institutional adoption of stablecoins and digital assets.
By introducing RWA-backed yield products, Soil not only enhances RLUSD’s utility but also strengthens XRPL’s position in the competitive blockchain landscape. As the RWA segment of crypto is projected to reach $2 trillion by 2028, regulated yield protocols could become a critical tool for bridging traditional finance with blockchain innovation.
Google searches for “Bitcoin going to zero” have reached their highest levels since 2022, reflecting retail concern amid sharp BTC declines and heightened macroeconomic uncertainty.
By Julia Sakovich
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“Bitcoin going to zero” searches hit 5-year highs | Photo: Unsplash
Google searches for “Bitcoin going to zero” have climbed to levels not seen since the FTX crisis in November 2022, according to Google Trends. The spike coincides with Bitcoin’s decline from its October 2025 all-time high near $126,000 to roughly $66,500, down nearly 50%. The Bitcoin Fear and Greed Index has fallen to extreme fear levels around 9, matching prior crises like the Terra collapse and FTX fallout.
Analysis from crypto intelligence firm Perception indicates that this surge is primarily driven by macroeconomic concerns and amplification of bearish narratives, particularly from media commentators such as Bloomberg’s Mike McGlone. Retail investors appear to be reacting to media saturation, with searches lagging professional sentiment by approximately two weeks.
Macro Uncertainty and Quantum Concerns
The spike in fear-driven searches occurs amid record-high global uncertainty, with the World Uncertainty Index reaching levels exceeding peaks during the 2008 financial crisis and the 2020 COVID‑19 shock. While quantum-computing risks for Bitcoin have been discussed in the media since late 2025, these concerns tend to intensify alongside price drops rather than acting as standalone catalysts.
Despite heightened retail anxiety, institutional investors are continuing to accumulate Bitcoin. Sovereign wealth funds, including Abu Dhabi, and corporations such as Strategy have increased holdings through ETFs and other positions, signaling confidence in BTC’s long-term value. Experts note this divergence between retail fear and institutional behavior underscores the differing timeframes and risk appetites between market participants.
Overall, the recent Google search trends highlight heightened public attention to Bitcoin’s downside risks while illustrating the broader context of institutional accumulation, macro uncertainty, and media-driven sentiment.
Blockchain analytics firm Arkham Intelligence reports the UAE holds roughly $700 million in Bitcoin through state-linked mining, marking a sovereign production-based crypto reserve.
By Julia Sakovich
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The UAE has accumulated $700M in Bitcoin | Photo: Unsplash
According to blockchain analytics firm Arkham Intelligence, the United Arab Emirates holds approximately 6,300 Bitcoin, valued near $700 million, in government-linked wallets. These reserves were acquired primarily through industrial-scale mining conducted by Citadel Mining, a public company majority-owned by the UAE-backed International Holding Company, itself affiliated with the UAE Royal Group. The UAE’s approach contrasts with other governments whose Bitcoin treasuries often originate from asset seizures or market purchases.
Satellite imagery and on-chain data indicate that Citadel Mining’s Abu Dhabi facility, built in 2022 in partnership with Phoenix Group, has produced roughly 9,300 BTC in total. About 6,300 BTC remain in state-linked wallets, while the remainder is held in associated entities.
This strategy underscores a production-driven model for sovereign crypto accumulation, reflecting the UAE’s broader diversification into blockchain infrastructure and digital finance.
Sovereign Crypto Positioning
The UAE’s mining-based Bitcoin reserves potentially rank it near sixth globally among publicly identified government holders. By directly generating assets rather than acquiring them on the open market, the UAE mitigates exposure to market volatility while building a strategic digital asset portfolio.
Analysts note this approach differs from countries such as the United States and the United Kingdom, where governmental Bitcoin holdings largely originate from law enforcement seizures.
This production-focused strategy positions the UAE as a notable participant in the evolving digital asset ecosystem. As Bitcoin prices fluctuate, the value of these reserves will vary, but the model highlights how sovereign actors are leveraging industrial-scale mining to establish long-term crypto holdings.
Bundesbank President Joachim Nagel advocates euro-denominated stablecoins and wholesale CBDCs to support the euro’s global role and mitigate risks from USD-pegged counterparts.
By Julia Sakovich
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Bundesbank President proposes euro-pegged stablecoins and wholesale CBDCs | Photo: Unsplash
Bundesbank President and European Central Bank (ECB) Governing Council member Joachim Nagel outlined the potential benefits of euro-denominated stablecoins for cross-border payments. Speaking at the American Chamber of Commerce in Germany, Nagel emphasized that such stablecoins could enable faster, lower-cost remittances while also addressing the risk of dollarization from USD-pegged stablecoins.
He suggested that both euro-pegged stablecoins and wholesale central bank digital currencies (CBDCs) would allow institutional actors to execute programmable transactions in central bank money, maintaining monetary policy effectiveness in a changing geopolitical environment.
Nagel highlighted that euro-based digital payment solutions could safeguard European sovereignty and preserve the efficacy of domestic monetary policy. The ECB aims to launch a digital euro by 2029, with infrastructure development already underway. Plans include retail-focused solutions fully based on European systems, alongside exploration of tokenized deposits and distributed ledger technologies for non-central bank money.
Stablecoins, Dollarization, and Market Context
Despite the potential advantages, some economists caution about stablecoin risks. Author Paul Blustein noted that stablecoins can facilitate illicit transactions and may challenge the singleness of money principle.
However, he argued that the dollarization threat in Europe remains limited due to confidence in the euro and the ECB’s credibility. Similarly, Ripple’s Matt Osborne framed stablecoins as complementary to existing financial systems, enhancing efficiency in cross-border trade and payments rather than undermining monetary sovereignty.
Market data shows that USD-pegged stablecoins dominate the crypto ecosystem, comprising roughly 99% of the $306 billion stablecoin market. Analysts suggest that euro-pegged alternatives could strengthen Europe’s financial autonomy while providing a competitive instrument for tokenized payments. Observers note that tokenized deposits may offer a more controlled approach to mitigating dollarization risks, providing a model for secure and compliant digital finance.
Peter Thiel and Founders Fund have fully divested their stake in ETHZilla, as the Ethereum treasury firm pivots toward tokenization and reduces its ether holdings amid a sharp stock decline.
By Julia Sakovich
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Peter Thiel and Founders Fund exit ETHZilla | Photo: Unsplash
Tech investor Peter Thiel and affiliated entities linked to Founders Fund have fully exited their position in Ethereum treasury firm ETHZilla, according to a recent SEC Schedule 13G filing. The divestment marks a notable shift in institutional backing for publicly traded crypto treasury vehicles that gained traction during the 2025 digital asset rally.
Shares of ETHZilla declined sharply following the disclosure, extending a prolonged drawdown from their August peak after the firm’s pivot to an Ethereum-focused treasury model. The company’s valuation has compressed alongside broader weakness in crypto-linked equities and declining speculative appetite across digital asset markets.
Institutional Exit and Treasury Model Pressures
Thiel and Founders Fund initially acquired a 7.5% stake in 2025, coinciding with ETHZilla’s rebrand from a legacy biotech structure into a digital asset accumulation vehicle. At the time, institutional endorsement helped drive a surge in the stock as investors sought public market exposure to ether holdings and staking yield strategies.
Since then, the firm has reduced its Ethereum reserves through multiple sales, including liquidations to fund share repurchases and redeem outstanding convertible debt. This shift from accumulation to balance sheet optimization reflects growing pressure on treasury-style crypto companies to demonstrate sustainable capital management rather than pure asset hoarding.
The move also comes as institutional investors reassess the risk-return profile of single-asset treasury firms, particularly those tied to volatile crypto assets. Compared with diversified crypto ETFs and custody platforms, treasury vehicles remain highly sensitive to token price cycles and funding costs.
Strategic Pivot Toward Tokenization and RWA
Alongside trimming its ether exposure, ETHZilla has repositioned its long-term strategy toward real-world asset tokenization and yield-generating structures. The company has acquired portfolios of modular home loans and aviation-related assets with plans to tokenize them on Ethereum-based infrastructure, targeting double-digit annualized yields.
This transition aligns with a broader institutional trend toward tokenized credit and structured products, an area increasingly viewed as a scalable revenue driver compared with passive crypto treasury strategies. Asset managers and crypto-native firms are actively exploring tokenization as a bridge between traditional finance and blockchain-based settlement layers.
Despite recent sales, ETHZilla remains among the larger corporate holders of Ethereum, underscoring the growing presence of treasury companies in digital asset markets. However, the competitive landscape has intensified, with larger balance sheet players and ETF issuers offering more liquid and regulated exposure to ether.
The exit by high-profile backers such as Thiel may signal a maturation phase for crypto treasury equities, where institutional capital becomes more selective and performance-driven. As macro liquidity conditions tighten and crypto volatility persists, firms relying on treasury accumulation alone may face increased scrutiny relative to diversified, yield-oriented blockchain business models.
Arthur Hayes warns Bitcoin’s divergence from the Nasdaq could signal tightening dollar liquidity and an emerging AI-driven credit cycle, though analysts say the timeline for disruption may be overstated.
By Julia Sakovich
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Arthur Hayes links Bitcoin’s divergence from the Nasdaq to tightening dollar liquidity | Photo: Unsplash
Bitcoin’s recent divergence from the Nasdaq 100 Index is emerging as a potential macro signal, according to BitMEX co-founder Arthur Hayes, who argues that weakening dollar liquidity and artificial intelligence-driven labor disruption could trigger broader credit stress. The digital asset has trended lower since its late-2025 peak while tech equities have remained relatively flat, creating a decoupling that Hayes views as an early warning indicator.
Hayes contends that Bitcoin, as a liquidity-sensitive asset, tends to react faster than equities to tightening financial conditions. Elevated interest rates, shrinking reverse repo balances, and restrictive monetary policy are already weighing on speculative assets, while equity benchmarks continue to reflect resilient corporate earnings and AI-driven optimism.
Macro Liquidity and Credit Cycle Risks
The thesis centers on the potential for AI adoption to accelerate white-collar job displacement, which Hayes estimates could translate into significant consumer credit and mortgage losses for US banks if labor markets deteriorate sharply. He suggests that a large-scale employment shock among knowledge workers could weaken household balance sheets and amplify defaults, ultimately feeding back into the broader financial system.
Institutional analysts, however, view the divergence as a data point rather than a definitive signal of systemic stress. Market participants note that Bitcoin’s price action is also influenced by crypto-native factors, including ETF flow dynamics, profit-taking after its all-time high, and regulatory uncertainty tied to pending digital asset legislation.
The relationship between Bitcoin and equities has historically been unstable, alternating between high correlation during risk-on periods and independent movement during liquidity shifts. In this context, the current decoupling may reflect sector-specific repricing rather than an immediate macro dislocation.
Institutional Perspective on AI and Market Pricing
Hayes further links the divergence to the rapid advancement of AI tools, arguing that productivity gains could pressure SaaS demand, employment, and credit quality over time. He projects that sustained automation could gradually weigh on sectors tied to knowledge work, eventually impacting banking exposure to consumer lending.
Many experts agree with the directional risk but question the timeline, emphasizing that labor market adjustments typically unfold over multiple quarters rather than abrupt waves of layoffs. Firms are more likely to rely on hiring freezes and attrition before widespread job cuts, potentially stretching any credit deterioration across a longer cycle.
From a macro allocation standpoint, the contrast between Bitcoin’s pullback and relative equity stability also intersects with broader asset rotation trends. Strength in traditional hedges such as gold alongside crypto weakness suggests investors may be pricing in a more cautious liquidity outlook rather than a singular AI shock.
If liquidity conditions deteriorate further, analysts expect central banks to eventually respond with accommodative measures, a scenario that historically supports scarce digital assets over the medium term. Until then, the Bitcoin-Nasdaq divergence is likely to remain a closely watched indicator as institutional investors assess whether it reflects early credit tightening or temporary post-cycle normalization.
The CFTC has filed a court brief claiming exclusive federal jurisdiction over prediction markets, intensifying a regulatory clash with states over event contracts and digital trading platforms.
By Julia Sakovich
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CFTC argues it has exclusive federal authority over prediction markets | Photo: Unsplash
The Commodity Futures Trading Commission has formally asserted exclusive federal jurisdiction over prediction markets in a new amicus brief submitted to the US Court of Appeals for the Ninth Circuit, escalating an ongoing regulatory conflict with state authorities. The filing comes in a case involving Crypto.com and the state of Nevada, where the platform is seeking to block state restrictions on its sports-event contracts.
In its brief, the agency argued that Congress granted the CFTC sole authority over futures and swaps under the Dodd-Frank framework, a definition it says includes event contracts tied to measurable outcomes such as sports results. The regulator maintained that these instruments function as commodity derivatives rather than gambling products, placing them squarely within federal oversight rather than state gaming laws.
Federal Jurisdiction Debate Intensifies
The dispute highlights a growing jurisdictional battle as prediction markets rapidly expand in scale and mainstream adoption. Platforms such as Kalshi and Polymarket have seen significant growth in trading volumes, particularly following heightened political and macroeconomic event speculation over the past year.
A lower court previously ruled that certain sports-event contracts were not under the CFTC’s authority, opening the door for state-level regulation. The agency’s appeal and accompanying brief signal a broader effort to prevent a fragmented regulatory landscape that could subject prediction market operators to a patchwork of gaming and derivatives rules across jurisdictions.
CFTC leadership has framed state litigation as regulatory overreach, emphasizing that event contracts can serve hedging and risk-management functions similar to traditional derivatives. The agency also stressed that these contracts clear through established financial infrastructure and include investor protections not typically associated with casino-style betting products.
Policy Shifts and Congressional Scrutiny
The filing arrives amid shifting policy direction at the CFTC, which recently scrapped earlier rulemaking efforts that sought to restrict certain event contracts deemed contrary to the public interest. That reversal suggests a more innovation-friendly stance toward emerging financial instruments tied to real-world events and digital platforms.
Lawmakers on Capitol Hill have simultaneously increased scrutiny of prediction markets, raising concerns about contracts linked to geopolitical events, sports outcomes, and political developments. Some policymakers argue these markets may resemble sportsbook wagering and risk bypassing state consumer protections and tax regimes.
From an institutional perspective, the jurisdictional outcome could shape how financial markets integrate event-driven derivatives into broader trading ecosystems. A clear federal framework may encourage institutional participation and product development, while continued state-level challenges could slow platform expansion and introduce compliance complexity.
The case is also being closely watched by crypto-native trading firms and fintech platforms, which increasingly view prediction markets as a convergence point between derivatives, data markets, and decentralized finance. A definitive ruling on federal authority could establish a precedent that influences regulatory treatment of future onchain and hybrid financial products.
BlackRock has begun seeding its proposed Ethereum staking ETF, signaling deeper institutional integration of yield-bearing crypto products as demand shifts beyond spot exposure.
By Julia Sakovich
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BlackRock seeds its planned Ethereum staking ETF with initial capital | Photo: Unsplash
BlackRock has begun acquiring Ether as part of the seeding process for its proposed iShares Staked Ethereum Trust ETF, marking a significant step toward introducing a yield-generating crypto exchange-traded product in the United States. According to an amended regulatory filing, a BlackRock affiliate purchased 4,000 seed shares at $25 each, providing $100,000 in initial capital that will be used to purchase ETH for the trust.
The fund, expected to trade under the ticker ETHB, intends to stake between 70% and 95% of its ether holdings under typical market conditions. Early 2026 benchmarks cited in the filing estimate an average annualized staking yield of around 3%, reflecting current validator participation and network reward dynamics on the Ethereum network. The filing also notes that staking rewards have trended lower as validator activity has expanded, underscoring the maturing economics of proof-of-stake systems.
The proposed staking ETF would differentiate itself from BlackRock’s existing spot Ethereum ETF, which focuses solely on price exposure without generating yield. By integrating staking, the structure aligns more closely with traditional income-oriented investment vehicles, potentially appealing to institutional allocators seeking diversified crypto return streams.
From a macro perspective, the move reflects a broader evolution in digital asset product design as institutional investors increasingly evaluate crypto not just as a speculative asset class but as an income-generating infrastructure layer. With global interest rates stabilizing and portfolio managers reassessing risk-adjusted returns, staking yields in the low-single-digit range may become competitive with certain fixed-income alternatives, particularly for funds already allocating to digital assets.
Competitive Landscape and Fee Structure
The filing outlines a sponsor fee of 0.25% annually, with a temporary reduction to 0.12% for the first $2.5 billion in assets under management during the initial 12 months. Additionally, approximately 18% of gross staking rewards will be allocated to the sponsor and execution agent, Coinbase Prime, while the remaining net rewards will accrue to the trust and shareholders.
Operationally, the fund plans to keep between 5% and 30% of its ether unstaked to support liquidity, creations, and redemptions, mirroring mechanisms used in commodity and crypto spot ETFs. This structure highlights the balance asset managers must strike between maximizing yield and maintaining operational flexibility in ETF frameworks.
The launch effort also signals intensifying competition among asset managers to expand beyond spot crypto ETFs into structured, yield-enhanced products. As regulatory clarity around staking-based securities continues to evolve, BlackRock’s early positioning could influence how institutional capital accesses onchain yield, particularly if Ethereum staking ETFs gain approval alongside a growing suite of tokenized and income-focused digital asset vehicles.
TON Foundation has partnered with Banxa to expand stablecoin payment processing for Asia-Pacific merchants, targeting cross-border settlements and SME adoption.
By Julia Sakovich
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TON Foundation and Banxa partner to deploy stablecoin payment infrastructure | Photo: Unsplash
TON Foundation has partnered with Banxa to expand stablecoin payment infrastructure for small and medium-sized enterprises across the Asia-Pacific region. The integration combines Banxa’s global fiat on- and off-ramp network with TON blockchain settlement rails to support business-to-business, consumer-to-business, and cross-border transactions.
The collaboration is designed to accelerate real-world commercial use cases for stablecoins, particularly in high-growth APAC markets where cross-border payment costs and settlement delays remain a structural challenge. By leveraging blockchain-based settlement, the firms aim to offer faster transaction processing and lower fees for regional merchants engaging in international trade.
Banxa, an OSL Group company with licensed operations across multiple jurisdictions, including Asia-Pacific, Europe, and the United States, provides a regulatory-compliant payment infrastructure that bridges traditional finance and digital assets.
Infrastructure Expansion Aligns with Payments Strategy
The partnership follows the recent rollout of TON Pay, a payment software development kit that enables applications within the Telegram ecosystem to accept Toncoin and stablecoins directly. TON Pay is positioned as a low-cost payment rail, offering sub-second settlement and transaction fees below traditional card networks, targeting the messaging platform’s large global user base.
The Open Network is increasingly positioning itself as a payments-focused blockchain, emphasizing scalability and microtransaction efficiency for consumer and merchant use cases. Executives at the foundation have highlighted long-term commercial utility as a key priority, with stablecoin adoption seen as a gateway to broader enterprise integration.
From a competitive standpoint, the move places TON within a growing cohort of blockchain networks prioritizing payments infrastructure over speculative trading activity. Stablecoin settlement has become a focal area for crypto ecosystems seeking mainstream adoption, particularly in regions with fragmented banking access and high remittance volumes.
Institutional Capital and Regional Market Context
The expansion also reflects broader institutional investment into digital payment rails across Asia. OSL Group, which acquired Banxa as part of its payments strategy, recently completed significant equity financing rounds, underscoring investor confidence in regulated crypto payment infrastructure as a long-term growth segment.
At a macro level, stablecoins are increasingly viewed as a bridge between traditional financial systems and decentralized networks, particularly for cross-border commerce and treasury management. Financial institutions and fintech firms are actively exploring blockchain-based settlement solutions to reduce costs, improve liquidity efficiency, and enhance transaction transparency.
By focusing on SME payment adoption in APAC, the TON-Banxa integration targets a segment with substantial transaction volume but limited access to efficient cross-border rails. If successful, the initiative could strengthen TON’s positioning in the global payments race, where blockchain networks, fintech providers, and traditional processors are competing to capture the next generation of digital commerce infrastructure.
Poland’s president has vetoed a second MiCA implementation bill, increasing regulatory uncertainty and pushing local crypto firms to pursue licensing in other EU jurisdictions.
By Julia Sakovich
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Poland vetoes its MiCA bill again | Photo: Unsplash
Karol Nawrocki has vetoed a second bill aimed at aligning Poland’s crypto framework with the European Union’s Markets in Crypto-Assets Regulation (MiCA), extending legal uncertainty for domestic digital asset companies. The rejected legislation, known as Bill 2064, was described by the president as largely identical to a previously vetoed proposal, signaling ongoing divisions within the government over the scope of crypto regulation.
The decision comes as Poland approaches the MiCA transition deadline in July 2026, a milestone requiring EU member states to establish supervisory structures for crypto market oversight. The country has yet to designate a competent authority under the framework, a gap highlighted by the Polish Financial Supervision Authority, or KNF, in recent communications.
From a policy standpoint, the veto underscores a broader tension between regulatory harmonization and domestic legislative priorities. While MiCA is designed to create a unified licensing regime across the EU, delays in national implementation risk creating short-term fragmentation in market access.
Domestic Firms Face Licensing Disadvantage Within the EU
The absence of implementing legislation places Polish crypto platforms at a structural disadvantage compared to firms licensed in other EU jurisdictions. Under MiCA’s passporting rules, companies approved in one member state can operate across the bloc, allowing foreign exchanges to enter Poland while local firms lack a clear domestic licensing pathway.
This dynamic has already influenced strategic decisions among market participants. Executives at Poland-linked platforms such as Kanga Exchange and Zonda Crypto have indicated they are pursuing alternative jurisdictions to secure MiCA authorization and maintain operational continuity.
Meanwhile, international competitors, including Coinbase, have expanded their European footprint after obtaining MiCA licenses in countries such as Luxembourg, highlighting a growing regulatory asymmetry within the single market. Smaller domestic firms may face higher compliance costs and potential market exit if delays persist.
Broader Institutional and Regulatory Implications
The repeated veto also reflects wider debates across Europe regarding proportional regulation and innovation policy. Some policymakers and industry advocates argue that overly restrictive implementation could suppress local fintech development, while others emphasize the need for robust consumer protection and systemic risk oversight.
At a macro level, MiCA represents one of the most comprehensive crypto regulatory frameworks globally, influencing how institutional capital evaluates jurisdictional risk in digital asset markets. Regulatory clarity has become a key factor in capital allocation, exchange expansion, and venture funding decisions across the EU.
With new legislative proposals reportedly in development, Poland’s regulatory trajectory will be closely monitored by institutional investors and crypto infrastructure providers. Until a compliant framework is enacted, however, the country risks losing competitive positioning within Europe’s regulated digital asset ecosystem as firms increasingly anchor licensing strategies in more predictable jurisdictions.
Dragonfly has raised $650 million for its latest crypto venture fund, signaling sustained institutional confidence in Web3 infrastructure and long-term blockchain innovation.
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Dragonfly secures $650M for its fourth crypto fund | Photo: Unsplash
Dragonfly has closed a $650 million fund dedicated to Web3 and blockchain venture investments, marking one of the largest crypto-focused capital raises in 2025. The fund underscores continued institutional appetite for foundational digital asset infrastructure despite cyclical volatility across crypto markets.
The raise reflects a broader shift in venture strategy, with capital increasingly directed toward protocol-layer innovation and scalable decentralized systems rather than short-term token speculation. Dragonfly, which manages more than $3 billion in assets, has built a track record through early investments in key blockchain ecosystems and decentralized finance platforms.
Institutional allocators are viewing Web3 as a long-duration technology theme aligned with broader digital transformation trends in finance, infrastructure, and data ownership. The timing of the fund suggests confidence in the sector’s maturation following the post-2022 market correction and subsequent focus on sustainable business models.
Infrastructure and Emerging Verticals Take Strategic Priority
The new capital is expected to target high-conviction segments, including decentralized physical infrastructure networks, modular blockchain architecture, zero-knowledge cryptography, and consumer-facing on-chain applications. These verticals are increasingly viewed as critical to scalability, privacy, and enterprise-grade blockchain adoption.
Dragonfly’s historical portfolio includes early backing of protocols such as MakerDAO, Compound, and Avalanche, positioning the firm as a cornerstone investor in foundational crypto infrastructure. Analysts note that concentrated venture funds of this scale often act as signal indicators for where institutional capital expects technological breakthroughs.
The fund structure is also expected to include follow-on investment capacity, enabling portfolio companies to scale through multiple funding rounds without immediate reliance on volatile token markets. This approach aligns with a broader venture shift toward disciplined capital deployment and longer investment horizons in the digital asset sector.
Institutional Context and Competitive Venture Landscape
The fundraising milestone comes amid growing institutional integration into crypto markets, including spot Bitcoin ETF launches by firms such as BlackRock and Fidelity, alongside expanding blockchain experimentation within traditional financial institutions. These developments are reshaping how venture capital evaluates risk-adjusted exposure to Web3 infrastructure.
The venture landscape has evolved significantly since earlier crypto funding cycles, particularly following the collapse of FTX, which triggered tighter due diligence and stronger governance expectations. As a result, large funds are now prioritizing regulatory clarity, technical robustness, and real-world utility over rapid speculative growth.
From a macro perspective, Dragonfly’s fundraise highlights sustained limited partner conviction that decentralized technologies will play a structural role in the future digital economy. With clearer regulatory frameworks emerging in major jurisdictions and increasing institutional experimentation with blockchain settlement and tokenization, venture capital is positioning itself for multi-cycle exposure to Web3 innovation rather than short-term market momentum.
Crypto.com has obtained ISO/IEC 42001:2023 certification for AI systems management, positioning artificial intelligence as a core business line alongside its crypto services.
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Crypto.com receives ISO/IEC 42001 AI certification | Photo: Unsplash
Crypto.com has received ISO/IEC 42001:2023 certification, becoming the first digital asset platform to secure the international standard for artificial intelligence management systems. The certification focuses on governance, transparency, and risk management in AI deployment, areas gaining increasing scrutiny from regulators and institutional stakeholders.
The company said the milestone reinforces its commitment to secure and compliant AI infrastructure as it scales technology-driven services. According to chief information security officer Jason Lau, the framework ensures AI systems are developed with security, privacy, and regulatory alignment embedded into operational workflows.
The move comes as global regulators accelerate efforts to standardize AI oversight, particularly in financial services, where automated decision-making and data usage face heightened compliance requirements. ISO/IEC 42001 is emerging as a benchmark for organizations integrating AI into critical financial and operational systems.
AI Positioned as a Strategic Growth Vertical
Kris Marszalek said the certification supports the firm’s broader strategy of integrating AI across its product ecosystem. The company has recently expanded AI-focused offerings, including software development kits, specialized data services, and the launch of its AI agent platform ai.com in early February.
The platform enables users to deploy autonomous AI agents capable of executing tasks such as trading, portfolio management, and workflow automation. Crypto.com has identified AI as one of its three core business lines, signaling a shift beyond traditional exchange services toward technology infrastructure and automation tools.
This strategy aligns with growing demand for AI-driven trading and analytics solutions in the 24/7 crypto market, where algorithmic decision-making can provide a competitive edge. Market participants increasingly view AI agents as a tool to optimize execution speed, liquidity access, and real-time market monitoring.
Competitive Pressure from AI-Integrated Crypto Platforms
Industry peers are also accelerating AI integration as the sector moves toward automated financial systems. Coinbase recently introduced wallet infrastructure designed to allow AI agents to earn, spend, and trade digital assets autonomously, highlighting intensifying competition in AI-enabled crypto services.
At a macro level, the convergence of artificial intelligence and digital assets reflects a broader institutional trend toward automation in financial markets. As traditional finance firms explore AI for trading, compliance, and risk analytics, crypto platforms are positioning themselves as early adopters of autonomous financial agents.
By securing internationally recognized AI governance certification, Crypto.com is aiming to differentiate itself on compliance and trust while expanding its technology stack. The development underscores a strategic shift across the crypto industry, where AI capabilities are increasingly viewed as a key driver of long-term platform competitiveness and institutional adoption.
The Netherlands is set to implement a mark-to-market tax regime for digital assets and securities, shifting away from a system of assumed returns previously struck down by the Supreme Court.
By Julia Sakovich
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Dutch lawmakers have approved a 36% tax on unrealized gains | Photo: Unsplash
The Dutch House of Representatives has approved the Actual Return in Box 3 Act, a sweeping reform that will impose a 36% flat tax on actual investment returns beginning January 1, 2028. This legislation transitions the Netherlands toward a mark-to-market system, where residents must pay taxes on paper profits from cryptocurrencies, stocks, and bonds even if the assets remain unsold. Pending Senate approval, the move signals a definitive end to the previous framework of taxing assumed returns.
The legislative shift addresses a series of Dutch Supreme Court rulings that found the older system violated European human rights protections. By taxing unrealized gains, the government aims to recover an estimated €2.3 billion in annual lost revenue. While real estate and qualifying startup shares will still be taxed only upon sale, most liquid assets will face annual assessment based on their year-over-year value increase.
Regional Fiscal Competition
The Netherlands already maintains a high statutory personal income tax rate, with top brackets reaching 49.50% in 2026. This aggressive stance on unrealized gains distinguishes the country from European neighbors like Germany and Norway, which generally tax capital gains only at the point of realization. Analysts suggest this discrepancy could impact the long-term competitive standing of the Dutch financial sector.
The average top personal income tax rate across OECD European nations currently sits at 43.4%. By implementing an annual 36% levy on asset appreciation, Dutch lawmakers are venturing into territory that critics warn could trigger capital flight. High-net-worth individuals and crypto-asset holders may evaluate relocating to jurisdictions with more traditional realization-based regimes to avoid annual mark-to-market liabilities.
Liquidity and Market Sentiment
The inclusion of digital assets reflects the growing institutional footprint of the crypto market in the Netherlands. By late 2025, indirect crypto investments held by Dutch entities reached €1.2 billion, a significant rise from previous years. However, taxing these volatile assets before they are liquidated presents unique challenges for retail investors who may lack immediate cash flow.
Market observers have highlighted the potential for liquidity traps, where investors are forced to sell portions of their portfolios simply to cover the tax bill on paper gains. To mitigate this, the bill includes a €1,800 tax-free return threshold and provisions for carrying forward net losses exceeding €500 indefinitely. Despite these safeguards, the requirement to settle liabilities on uncashed profits remains a point of friction for the broader investment community.
The bill’s review period has been shortened from five years to three to allow for rapid adjustments if the rollout encounters structural problems. While several political parties expressed reservations about taxing unrealized gains, the need for a legally viable framework outweighed these concerns. The final implementation now rests on the upcoming Senate vote.
Binance denied allegations of Iran-linked sanctions violations and investigator dismissals, stating an internal review with external counsel found no compliance breaches.
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Binance disputes reports of Iran-linked sanctions violations | Photo: Unsplash
Binance has rejected allegations that it facilitated sanctions-violating transactions tied to Iranian entities, disputing claims that internal investigators were dismissed after raising compliance concerns. The exchange said a comprehensive internal review conducted with external legal counsel found no evidence of sanctions breaches related to the reported activity.
The allegations stem from a media report suggesting that over $1 billion in transfers linked to Iranian entities moved through the platform between 2024 and 2025, primarily involving stablecoin transactions on the Tron network. Binance characterized the claims as inaccurate and stated that no employees were terminated for flagging compliance issues, emphasizing that it maintains established internal reporting channels and audit procedures.
Ongoing Oversight and Compliance Context
The dispute comes as Binance continues to operate under heightened regulatory scrutiny following its 2023 settlement with United States authorities over anti-money laundering and sanctions control failures. As part of that agreement, the company committed to enhanced compliance frameworks, external monitoring, and governance reforms, including leadership changes and expanded internal controls.
Binance said it remains fully compliant with monitoring obligations and continues to cooperate with regulators and oversight bodies. The exchange also rejected assertions that it is reneging on regulatory commitments, noting that transaction reviews are conducted based on available sanctions designations and risk assessments at the time of activity.
Industry Pressure and Reputational Stakes
The controversy highlights broader institutional pressure on global crypto exchanges to strengthen sanctions screening and transaction monitoring, particularly as stablecoins and cross-chain activity expand in scale. Large platforms face increasing expectations from regulators to demonstrate robust compliance infrastructure comparable to traditional financial institutions.
Recent external reports and past enforcement actions have kept Binance at the center of regulatory debates around risk management and governance in the digital asset sector. In this environment, disputes over compliance practices carry significant reputational and competitive implications, especially as exchanges seek institutional partnerships and regulatory approvals across multiple jurisdictions.
From a market structure perspective, continued scrutiny of compliance controls may influence how regulators approach licensing, monitoring, and capital requirements for centralized crypto platforms. Binance’s response underscores its strategic focus on reinforcing credibility with regulators and institutional stakeholders as the global regulatory framework for digital assets becomes more stringent.
Metaplanet reported a sharp revenue increase after pivoting to Bitcoin income operations, with crypto-related activities accounting for the vast majority of sales.
By Julia Sakovich
Published:
Updated:
Metaplanet revenue jumped 738% | Photo: Unsplash
Japanese public company Metaplanet reported a significant surge in revenue following its strategic pivot toward Bitcoin-focused operations, underscoring how crypto treasury models are reshaping corporate financial structures. The firm posted fiscal 2025 revenue of 8.9 billion yen, or about $58 million, up sharply from roughly $7 million a year earlier, representing a 738% year-on-year increase.
The growth was primarily driven by the company’s Bitcoin income segment, launched in late 2024, which has rapidly become its dominant business line. Approximately 95% of total revenue was generated through Bitcoin-related activities, largely tied to premium income from BTC options transactions. This marks a notable departure from its previous reliance on traditional sectors such as hospitality and media.
Accounting Volatility Offsets Operating Gains
Despite reporting an operating profit of around $40 million, Metaplanet recorded a net loss of approximately $619 million due to valuation changes linked to its large Bitcoin holdings. Under prevailing accounting standards, unrealized losses from crypto price declines must be reflected on financial statements, creating earnings volatility even when core operations remain profitable.
The company’s balance sheet exposure to Bitcoin expanded significantly over the past year. Holdings rose from 1,762 BTC at the end of 2024 to more than 35,000 BTC by the close of 2025, positioning Metaplanet as one of the largest corporate Bitcoin holders in Japan. A valuation drop exceeding $600 million during the period largely erased operating income, highlighting the financial sensitivity of treasury-heavy crypto strategies to market cycles.
Institutional Context and Competitive Positioning
Metaplanet’s transformation aligns with a broader institutional trend in which publicly listed firms adopt Bitcoin treasury and income strategies to diversify revenue and hedge against currency debasement. The company has raised more than $3 billion in capital since initiating its Bitcoin-focused model, signaling sustained investor appetite for crypto-aligned corporate balance sheets despite market volatility.
The firm continues to frame its approach as a long-term treasury strategy centered on accumulating and holding Bitcoin while monetizing derivatives and yield-generating opportunities. Management has reiterated its commitment to maintaining this direction even as digital asset prices fluctuate, reflecting a competitive landscape where treasury-focused crypto companies increasingly rely on structured income and capital markets activity rather than legacy business lines.
Looking ahead, Metaplanet expects further expansion in both revenue and operating profit, supported by continued scaling of its Bitcoin income operations. However, macro conditions, including crypto price movements and accounting treatment of digital assets, are likely to remain key determinants of reported profitability and investor perception.
