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Institutional use of blockchain is accelerating as banks and payment companies test it for settlements, but public-by-design ledgers expose transaction data in ways that conflict with existing financial privacy norms. Businesses and financial institutions are reluctant to move routine activity onto systems where competitors or adversaries can infer sensitive information, even though transparency improves auditability and enforcement. Privacy-preserving approaches such as zero-knowledge proofs could allow transactions to be validated without revealing identities or details, but they remain rare in major applications like exchange compliance checks. Regulators now understand the technology and are interested in it, yet they want proof that it works reliably at scale before accepting it as a substitute for current oversight tools, while companies hesitate to deploy it without clearer regulatory approval.
The debate is intensifying as central bank digital currencies move closer to reality, especially retail versions that could give governments broad visibility into individual and business transactions. While wholesale CBDCs resemble existing interbank systems, retail models raise unresolved questions about who controls access to data, how exceptions are handled, and whether privacy protections would endure political pressure over time. Fanusie argues that practical financial privacy is about limiting public exposure rather than total secrecy, but both fully transparent blockchains and highly centralized state systems challenge that balance in different ways. Some projects and policy groups are pushing ahead with selective-disclosure designs using zero-knowledge tools and promoting their compatibility with data-protection rules, yet widespread adoption remains blocked by the mutual hesitation of regulators and industry. Source
Arca CIO Jeff Dorman argues that Bitcoin and many cryptocurrencies may not benefit from the surge in asset tokenization and institutional blockchain adoption, even as major players like the New York Stock Exchange plan tokenized securities platforms with round-the-clock trading and stablecoin funding. He says the original idea that blockchain infrastructure would capture most of the value has failed, and that Bitcoin in particular has no direct exposure to the fastest-growing areas such as stablecoins, decentralized finance, or real-world asset tokenization. In his view, most of the economic gains are bypassing crypto tokens and flowing elsewhere.
Dorman believes only a small group of DeFi tokens, token launchpad companies, and firms like Galaxy Digital are positioned to benefit meaningfully as DeFi evolves into core financial infrastructure. He also contends that value from current adoption trends is accruing mainly to intermediaries such as BlackRock, Securitize, and Tether rather than to crypto assets themselves. Macro analyst Dan Tapiero publicly disputed this outlook, but Dorman reaffirmed his position, questioning where token holders will see returns from widespread blockchain use. Source
Ethereum’s main network has overtaken all major layer-2 blockchains in daily active addresses, helped by sharply lower gas fees after the Fusaka upgrade in December. Activity peaked at about 1.3 million addresses on Jan. 16 before settling near 945,000, still higher than networks such as Arbitrum, Base, and OP Mainnet. This shift comes as the total value secured across layer-2 networks stands at about 45 billion dollars, down 17% over the past year, suggesting a short-term return of users and transactions to the main chain as costs decline.
However, security analysts say a significant portion of the surge may be driven by address poisoning attacks, where scammers send tiny transactions from lookalike wallet addresses to trick users into copying the wrong destination. Lower fees have made this kind of spam cheaper to execute at scale, and researchers argue it is a major contributor to recent transaction volume. Even so, Ethereum continues to dominate asset tokenization, hosting more than 400 billion dollars in on-chain assets, including about 56% of stablecoins and roughly two-thirds of tokenized real-world assets when layer-2s are included, with the overall tokenized asset market projected to exceed 11 trillion dollars by 2030. Source
The U.S. Department of Justice highlighted three major prosecutions involving cryptocurrency in its 2025 Fraud Section Year in Review, reflecting a sharp rise in digital assets being used within traditional fraud schemes. Prosecutors charged 265 defendants over the year with more than 16 billion dollars in intended losses, more than double the prior year. Among the cases was a 1 billion dollar Medicare fraud tied to unnecessary medical grafts targeting elderly and terminally ill patients, which led to seizures of over 7.2 million dollars including cryptocurrency, and a nationwide healthcare fraud crackdown that charged 324 individuals and seized more than 245 million dollars in cash, vehicles, crypto, and other assets.
The report also cited the sentencing of the former CEO of Wolf Capital to five years in prison for a 9.4 million dollar crypto investment scam that affected roughly 2,800 investors by promising extremely high daily returns. At the same time, lawmakers are advancing new measures such as the bipartisan SAFE Crypto Act to coordinate efforts against crypto scams, while New York prosecutors are pushing to criminalize unlicensed crypto operations. Justice officials and industry analysts say the threat is being intensified by a surge in AI-enabled fraud, which has grown by about 500 percent and enabled criminal networks to steal and launder funds at industrial scale within hours, making crypto-related enforcement a growing priority. Source
Vietnam has begun accepting applications for licences to operate digital asset trading platforms, formally launching its long-planned pilot program for a regulated crypto market. The State Securities Commission opened the process on January 20, 2026, following new administrative procedures issued by the Ministry of Finance and the recent Digital Technology Industry Law, which for the first time defines digital and crypto assets in national legislation. While crypto assets are now recognized as property, they are not legal tender and remain restricted as a means of payment. Regulators have not yet confirmed receiving or approving any applications since the window opened.
Although no firms had applied as of October 2025 due to strict requirements, interest from domestic financial institutions is growing. Around 10 securities companies and banks, including SSI Securities, VIX Securities, Military Bank, Techcombank, and VPBank, have announced preparations to apply and to launch operations once licensed. Vietnam’s framework is among the region’s most restrictive, requiring applicants to be Vietnamese entities with at least 10 trillion dong in paid-in capital, majority institutional ownership, and foreign ownership capped at 49%, while banning fiat- or securities-backed asset issuance. Source
Bitcoin’s drop below 90,000 has pushed the network’s net realized profit and loss metric into negative territory for the first time since October 2023, signalling that more coins are being moved at a loss than at a gain. Data from CryptoQuant shows cumulative realized losses of about 69,000 BTC, equivalent to roughly 6.18 billion at current prices, marking a psychological shift among holders from profit-taking to loss-cutting. Short-term investors appear to be driving much of the selling, while the pattern resembles conditions seen ahead of the 2022 bear market, when declining realized profits reflected weakening price momentum even as spot prices had previously remained elevated.
The contrast with earlier in the cycle is sharp: around the March 2024 peak, realized profits reached about 1.2 million BTC, but by October 2025, despite Bitcoin hitting a new high near 124,774, realized profits had fallen to about 331,000 BTC. Some analysts argue this deterioration points to fading market strength, while others say the metric is less predictive today because institutional participation has reduced volatility and changed trading behaviour. Recent price weakness has also been linked to macro factors such as turmoil in Japan’s bond market, large-scale liquidations, shifting U.S. trade policy, Federal Reserve rate expectations, and the broader U.S. debt outlook, making future performance increasingly dependent on policy rather than on-chain indicators alone. Source
Natix Network and automotive supplier Valeo have partnered to develop an open-source, multi-camera artificial intelligence system called the World Foundation Model, designed to improve how autonomous vehicles understand and predict real-world motion and traffic behaviour. Built on Natix’s Solana-based decentralized physical infrastructure network, the model is intended to move beyond text and image interpretation into continuous physical environments, supporting safer and more adaptable self-driving technology. Both companies plan to release the model, datasets, and training tools publicly so developers can refine and deploy the technology, with an initial version expected within the next few months.
The project positions decentralized data collection as a foundation for training physical AI systems across diverse driving conditions before commercial rollout, aiming to increase transparency and safety. Similar approaches are already being tested, with startup Wayve using world models to operate vehicles in unfamiliar cities without prior local training. Valeo views the effort as key to advancing mobility intelligence, while Natix compares the opportunity to the early rise of large language models, arguing that scalable world models will define the next phase of AI. The partnership enters a competitive field that includes other open-source autonomous driving frameworks, while leveraging Natix’s network of hundreds of thousands of contributors and extensive real-world driving data to support large-scale development. Source
Markethive is positioned as an inbound marketing and social business platform that combines blogging, social networking, and digital publishing into a single system designed to help entrepreneurs and businesses expand their reach and build relationships. At the core of this is its blogging system and the concept of “blogcasting,” which automatically broadcasts blog posts and newsletter updates across connected social media accounts, subscriber feeds, and WordPress sites using integrated tools and plugins. By linking user profiles to external platforms and enabling automatic reposting, a single article can be distributed widely across hundreds or thousands of feeds, turning each post into a multi-channel campaign rather than a standalone publication.
The platform emphasizes network effects, where subscriber sharing can multiply exposure dramatically, improving brand visibility, website traffic, search rankings, and conversion potential while fostering community interaction. Additional features such as group-based blogging, content curation, article “swiping” for reuse or editing, and collaborative proofing are designed to encourage cooperative content creation and mentoring among members. Markethive also supports curated content groups and large-scale syndication to WordPress sites, positioning itself as a centralized hub for managing blogs, social distribution, and online identity, with the aim of helping users consistently publish, grow authority in their niche, and scale their digital presence through community-driven amplification. Source
Chainlink has seen a sharp rise in attention across crypto social platforms, reaching its highest discussion level in five weeks despite broader market weakness. The increase followed an upgrade to its Data Streams product that now provides near real-time US stock and ETF prices around the clock during the trading week, covering pre-market, regular, after-hours, and overnight sessions. This capability is designed to remove a major barrier to integrating traditional financial markets with blockchain-based applications, reinforcing Chainlink’s role in tokenized finance infrastructure rather than as a typical speculative altcoin.
While engagement has grown, sentiment has become more cautious, with selling-focused commentary rising and bearish views nearing levels last seen over a year ago. At the same time, Chainlink continues to lead DeFi projects in development activity, with consistently strong GitHub contributions. Some industry figures argue this disconnect points to undervaluation, highlighting the project’s broader function as a platform connecting blockchains with real-world data and systems, its dominant position in several infrastructure services, and adoption by large institutions such as SWIFT, JPMorgan, Visa, Fidelity, and DTCC. Source
Capital One has agreed to acquire fintech firm Brex in a $5.15 billion deal combining cash and stock, with the transaction expected to close in mid-2026. The purchase comes only months after Brex rolled out native stablecoin payment support, beginning with USDC, positioning the company as a pioneer among global corporate card providers in integrating blockchain-based payments. Capital One’s leadership said the acquisition will accelerate its push into technology-driven business payments and reflects a broader effort by traditional banks to gain exposure to crypto-related infrastructure through established startups.
Brex will continue operating under its current CEO, Pedro Franceschi, who said the partnership would allow both companies to invest more heavily and expand services to businesses that are underserved by traditional banking. The deal is among the largest fintech acquisitions in recent years and follows growing interest from major financial institutions in stablecoins after new US regulations were passed in 2025. Since the GENIUS Act became law, the stablecoin market has grown nearly 19 percent to a record capitalization of $314 billion, even as other areas of the crypto market have stagnated or declined. Source
Jupiter and Ondo Finance are collaborating to introduce more than 200 tokenized U.S. stocks and ETFs to the Solana blockchain through Ondo Global Markets. The platform, which initially launched on Ethereum and BNB Chain in late 2025, allows investors to buy, sell, and trade tokenized equities with brokerage-level pricing and access to deep Wall Street liquidity. Solana users will now be able to trade a wide range of stocks, including technology, growth, blue-chip, sector-specific ETFs, and commodity-linked items, while maintaining prices aligned with traditional markets.
Ondo’s tokenized assets are supported by liquidity from major exchanges like NASDAQ and NYSE, rather than relying on limited on-chain liquidity pools. The expansion aims to broaden access to traditional financial instruments via blockchain infrastructure while meeting rising global demand for U.S. equities. Ondo Global Markets has already achieved over $530 million in total value locked and more than $5.1 billion in cumulative trading volume on previous chains. This move reflects growing momentum for tokenized real-world assets, with analysts projecting that trillions of dollars in stocks, bonds, and ETFs could eventually migrate on-chain. Source
Crypto adoption is expanding globally but at uneven rates, with some regions advancing faster than others due to differences in economic conditions, financial inclusion, and existing infrastructure. PwC describes the global landscape as a fragmented ecosystem where blockchain and digital assets address distinct challenges in each market, covering use cases such as payments, remittances, savings, capital markets, and tokenization. The acceleration of adoption in the US has been supported by a crypto-friendly Trump administration, which has encouraged institutions to launch products tied to cryptocurrencies and stablecoins.
Institutional interest in crypto has reached a point of no return, with banks, asset managers, payment providers, and large corporates embedding digital assets into their core operations, balance sheets, and infrastructure. While this institutional involvement reshapes market norms around governance and resilience, some analysts caution that it may not necessarily drive prices to expected highs without significant market-moving events. Bitcoin, for example, has seen strong institutional accumulation over the past year, but further price surges may depend on broader catalysts rather than institutional demand alone. Source
DeFi Development Corp., a Solana-based treasury firm, launched its experimental meme coin, DisclaimerCoin (DONT), and quickly faced allegations of insider trading. An early buyer, described by the firm as a “sniper,” purchased $4,000 worth of DONT before the public launch, which surged in value to over $1 million as the company began promoting the rollout. The wallet in question bought nearly 7% of the total supply of 420 billion tokens in multiple transactions within the first hour. Observers noticed that the sniper’s funding wallet had ties to the firm’s liquid staking token and validator, prompting speculation about potential connections between the trader and the company.
DeFi Development Corp. later confirmed it had identified the early sniper and retrieved both the proceeds from sales, about $200,000, and the remaining 17 billion DONT tokens, worth roughly $1.5 million, which were subsequently burned. Following the burn, DONT’s market cap briefly surged to $35 million. The firm maintained that it had acted transparently and upheld ethical standards, but declined to explain how the tokens were recovered or whether the trader had any prior connection to the company. Shares of DFDV fell 2.33% on the day and are down 73% over the past six months, trading near $6.29. Source
The American Bankers Association (ABA) has made preventing yield-bearing stablecoins a top goal for 2026, arguing that allowing these digital assets to offer interest or rewards could pull deposits away from traditional banks and weaken community lending. The ABA is urging Congress to include provisions in upcoming crypto market structure legislation that would prohibit stablecoins from acting as deposit substitutes. Bank of America CEO Brian Moynihan highlighted that up to $6 trillion could potentially move out of banks into interest-paying stablecoins, raising concerns over the stability and role of traditional banking in the financial system. The ABA’s focus on stablecoin regulation tops other priorities for the year, including fighting financial fraud and addressing arbitrary interest rate caps.
Crypto industry leaders counter that stablecoin yields are beneficial and pose little systemic risk. Circle CEO Jeremy Allaire called the banking lobby’s concerns “totally absurd,” noting that yields increase user engagement and adoption, while SkyBridge Capital founder Anthony Scaramucci warned that banning yield-bearing stablecoins could put the US dollar at a disadvantage compared to China’s digital yuan. Despite the GENIUS Act’s ban on interest for stablecoins, the ABA claims that loopholes could allow yield to be offered through third parties, prompting renewed lobbying for stricter rules. Source
Bitwise launched the Proficio Currency Debasement ETF, trading under BPRO, offering exposure to Bitcoin, gold, and other precious metals as a strategy against fiat currency depreciation. The actively managed fund aims to maintain at least a 25% allocation to gold, with additional exposure to silver, platinum, palladium, mining equities, and Bitcoin, adjusting holdings based on market conditions. Bitwise frames the ETF as a hedge against currency debasement, citing inflation and money-printing risks as threats to long-term wealth, and targets financial advisors who may currently have little exposure to assets that protect against such risks.
The fund’s debut follows a year of strong performance for gold and silver, despite Bitcoin declining 15% over the same period after peaking above $126,000. Bitwise Chief Investment Officer Matt Hougan emphasized that the fund addresses what he considers one of the biggest risks to wealthy families over time: currency debasement. While Bitcoin demand from institutional investors via spot ETFs has been strong, Hougan notes that gold’s parabolic rise was also driven by central bank purchases, a dynamic Bitcoin lacks. With a 0.96% expense ratio, BPRO is costlier than Bitwise’s $3.5 billion spot Bitcoin ETF, but Hougan sees it as a strategic tool for investors seeking protection from the erosion of fiat currency value. Source
Circle CEO Jeremy Allaire emphasized that USDC, the company’s dollar-pegged stablecoin, functions as neutral financial infrastructure rather than a competitor to banks or card networks like Visa and Mastercard. Speaking at the World Economic Forum in Davos, Allaire described stablecoins as network effect businesses that gain value as more developers and institutions integrate them, positioning Circle as a neutral operator that does not compete with banks, payment companies, or exchanges. He noted that the long-term implications of stablecoins are uncertain, especially as technological advances like AI could drastically reduce the cost of storing and moving money, potentially reshaping payment models.
Allaire also commented on U.S. regulatory developments, noting bipartisan support for the Digital Asset Markets Clarity bill, which addresses stablecoins and the broader use of digital tokens in capital markets. Circle’s USDC is the second-largest stablecoin by market capitalization, totaling about $74.2 billion, while Tether remains the leader with $186.7 billion. The stablecoin sector has seen growing competition, with Fidelity, Stripe, and MoonPay all developing new U.S. dollar–pegged stablecoins aimed at institutional or everyday payment use. Despite these emerging rivals, Allaire reinforced Circle’s focus on building shared infrastructure that complements rather than competes with traditional financial systems. Source
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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