Crypto World
CFTC Launches Innovation Task Force for Crypto Oversight
TLDR
- The CFTC has launched an Innovation Task Force to oversee crypto, artificial intelligence, and prediction markets.
- CFTC Chair Michael Selig announced the new initiative at the Digital Asset Summit in New York City.
- Michael J. Passalacqua will lead the task force as part of the agency’s regulatory efforts.
- The task force will coordinate with the Securities and Exchange Commission and its crypto unit.
- The SEC and CFTC recently issued joint guidance to clarify jurisdiction over digital assets.
The Commodity Futures Trading Commission (CFTC) has created an Innovation Task Force to oversee crypto, artificial intelligence, and prediction markets. Chair Michael Selig announced the initiative on Tuesday at the Digital Asset Summit in New York City. He said the group will draft clear rules and coordinate with federal agencies to guide emerging financial products.
CFTC Sets Framework for Crypto and Artificial Intelligence Oversight
CFTC Chair Michael Selig introduced the Innovation Task Force to advance regulatory clarity for digital assets and artificial intelligence tools. He said the agency will use the group to support responsible product development and structured market growth.
Selig stated, “By establishing a clear regulatory framework for innovators building on the new frontier of finance, we can foster responsible innovation at home and ensure American market participants are not left on the sidelines.”
He said the task force will give innovators direct access to agency staff for structured discussions and policy feedback.
Selig told attendees, “The idea behind our innovation task force is to really create a space where innovators and builders can come in and talk with the staff.”
The agency confirmed that Michael J. Passalacqua, a senior advisor to Selig, will lead the new group and oversee its operations.
The task force will coordinate with the Securities and Exchange Commission and its existing crypto task force. The SEC formed its crypto task force last year and held roundtables on DeFi and tokenization topics. Both agencies issued joint interpretive guidance last week to clarify jurisdictional boundaries and confirm that most cryptocurrencies are not securities.
Interagency Coordination and Focus on Prediction Markets
Selig said the Innovation Task Force will also work with the CFTC’s innovation advisory committee, created in February. The advisory committee includes more than 30 executives from financial and technology firms. Members include Kalshi CEO Tarek Mansour and Nasdaq CEO Adena Friedman, according to agency records.
The CFTC has increased oversight of prediction markets over the past year and asserted its jurisdiction in this sector. Selig has stated that the agency regulates derivatives linked to future events, including sports outcomes. Several states have opposed certain platforms, arguing that sports-related contracts may conflict with local gaming laws.
The agencies have aligned their regulatory stance through joint statements and coordinated guidance over the past year. Last week’s interpretive release outlined how each agency determines whether a digital asset falls under securities or commodities law. The CFTC said the Innovation Task Force will continue collaborating with federal partners as it refines oversight for crypto products, artificial intelligence applications, and prediction markets.
A down day in crypto became slightly less so in the minutes since U.S. stocks closed for the session.
According to Israeli Channel 12, a one-month ceasefire could soon be announced as part of a package being negotiated by White House envoys Steve Witkoff and Jared Kushner.
Other terms of the deal reportedly include a dismantling of Iran’s existing nuclear capabilities and that country’s vow to “never seek” nuclear weapons.
The news was felt most immediately in the oil market, with Brent Crude dropping from $104 to below $100 in a few minutes.
Trading down throughout the day and sitting near $69,000, bitcoin quickly popped back to $70,000. U.S. stock index futures also posted small gains on the news.
TLDR
- Microsoft shares fell about 2.5% and traded near $373 during Tuesday’s session.
- Major U.S. indices moved lower as renewed geopolitical tensions pressured technology stocks.
- Reports said Iran started charging transit fees in the Strait of Hormuz, raising trade concerns.
- The Manufacturing PMI rose to 52.4, beating expectations of 51.5 and signaling expansion.
- Despite strong economic data, broader market weakness kept MSFT stock under pressure.
MSFT stock declined on Tuesday as broader markets retreated and geopolitical risks resurfaced. The stock fell about 2.5% to nearly $373 during the session. Traders reacted to renewed tension in the Middle East and weakness across major technology names.
MSFT Stock Drops as Geopolitical Tensions Weigh on Tech
MSFT stock moved lower as major U.S. indices reversed earlier gains. The Dow Jones, S&P 500, and Nasdaq each closed in negative territory. Reports tied the selloff to rising tensions linked to Iran. News from the Strait of Hormuz added pressure on global trade routes.
Authorities reported that Iran began charging transit fees for vessels in the region. That development raised concerns about shipping costs and energy prices. Consequently, large-cap technology stocks faced renewed selling pressure. Companies within the “Magnificent Seven” group traded lower during the session.
Nvidia, Apple, and Amazon have already posted declines between 12% and 13% this year. Those losses have trailed the broader S&P 500 index performance. Market participants often move these stocks together during uncertain periods. As risk appetite weakens, traders reduce exposure to high-growth sectors.
Microsoft traded in line with its mega-cap peers during the pullback. The company did not release new corporate updates on Tuesday. However, broader macro headlines influenced price action. As a result, the stock reflected general market direction rather than company-specific developments.
Strong PMI Data Fails to Lift MSFT Stock
The latest Manufacturing Purchasing Managers’ Index showed continued expansion. The PMI reading came in at 52.4 for the month. Economists had expected a reading of 51.5. The previous figure stood at 51.6.
A PMI reading above 50 indicates expansion in manufacturing activity. The latest data suggested stable demand and steady production levels. Despite the stronger reading, equities did not rally. Instead, geopolitical headlines dominated trading decisions.
Market analysts pointed to a shifting focus during the session. “Geopolitical risks are driving short-term sentiment,” one market strategist said. Economic data often supports long-term growth projections. However, traders prioritized global developments during Tuesday’s session.
Microsoft continues to expand its Azure cloud platform. The company also integrates automation tools across enterprise products. These initiatives support revenue growth targets. Still, Tuesday’s price movement reflected broader market conditions.
MSFT stock closed near $373 after the 2.5% decline. Trading volume remained consistent with recent sessions. The PMI report remains the latest major economic release influencing markets.
Chair Michael Selig said that the task force was an example of “future-proofing“ regulation at the Commodity Futures Trading Commission.
The US Commodity Futures Trading Commission (CFTC) is looking to embrace innovation in its regulatory approach to crypto and blockchain with the launch of a new Innovation Task Force, according to a Tuesday notice.
Chair Michael Selig said that the task force will work with the regulator’s Innovation Advisory Committee to create a framework focused on crypto, blockchain, AI, and prediction markets. The effort will be led by Michael Passalacqua, who joined the CFTC as a senior adviser in January after working on crypto and blockchain issues at international law firm Simpson Thacher & Bartlett.
“The idea behind our innovation advisory task force is really to create a space where innovators and builders can come in and talk to the staff,” Selig told attendees at the Digital Asset Summit in New York City on Tuesday. “It’s not just crypto — it’s going to be prediction markets, crypto, and AI. We think these three verticals are really important.”
The move comes more than a year after the US Securities and Exchange Commission (SEC) launched its own task force focused on crypto regulation, just one day after US President Donald Trump took office, and SEC Commissioner Mark Uyeda took the reins as acting chair from former Commissioner Gary Gensler. The SEC task force, headed by Commissioner Hester Peirce, included Selig as chief counsel at the time before he was nominated by Trump to chair the CFTC.
Related: SEC task force met with Trump-supporting firms to discuss crypto regulation
Regulators work on crypto rules as market structure legislation remains stuck
The CFTC’s announcement comes on the heels of an SEC interpretative notice last week that proposed that the agency would not consider most crypto asset securities under federal law. SEC Chair Paul Atkins called the measure a “bridge” to clarify crypto regulation in the absence of Congressional action on a comprehensive digital asset framework.
The market structure bill, called the CLARITY Act when it passed the House of Representatives in July 2025, has effectively been stalled in the Senate amid debates over stablecoin yield, ethics, tokenized equities, and other issues. While some proponents of the legislation have said policymakers were closer to reaching an agreement, it was unclear as of Tuesday if or when it would reach the Senate for a full floor vote.
Magazine: Banks want to run Vietnam’s crypto exchanges, Boyaa’s $70M BTC plan: Asia Express
Circle is partnering with Sasai Fintech to expand the use of its USDC stablecoin across African payment corridors, targeting remittances, business transactions and mobile wallet services.
According to Tuesday’s announcement, collaboration will integrate the second-biggest stablecoin into Sasai’s existing payments infrastructure, which supports cross-border transfers, enterprise payments and consumer wallets, with the aim of reducing costs and settlement times.
Sasai operates across multiple African markets, providing digital payments services that will integrate with Circle’s onchain infrastructure.
The companies said they will explore practical applications for USDC (USDC) using Circle’s full-stack platform, as stablecoin usage grows in Africa alongside rising demand for cross-border payments and mobile-first financial services.
The United Nations has set a target of reducing average remittance transaction costs to less than 3% globally. However, costs remain high, particularly in Sub-Saharan Africa, according to the World Bank. “Sierra Leone, Uganda, Angola, Botswana, and Zambia are among the economies with the highest transaction costs, all greater than 7% in 2023,” according to a World Bank June 2025 report.
Circle CEO Jeremy Allaire said the company is focusing on high-growth payment corridors in emerging markets, while Cassava Technologies Chairman Strive Masiyiwa said the integration could expand access to digital financial services for businesses and consumers.
Data from DefiLlama shows USDC is the second-largest stablecoin by market capitalization at around $78.6 billion, trailing only Tether’s USDT (USDT) at about $184.1 billion.
Related: Africrypt founders back in South Africa years after platform collapse: Report
The rise of crypto and stablecoins in Africa
Crypto adoption in Sub-Saharan Africa has accelerated sharply, up 52% in the 12 months through June 2025, with the region receiving more than $205 billion in onchain value, according to a Chainalysis report from September.
Nigeria accounted for over $92 billion of that activity, followed by South Africa, Kenya, Ethiopia and Ghana, with usage largely driven by remittances, cross-border payments and demand for hedging against currency volatility.
The growth is drawing increased interest from crypto companies expanding into the region. Earlier this month, Blockchain.com entered Ghana as part of its broader African push, following more than 700% growth in brokerage transaction volume in Nigeria since launching retail services there.
Regulators are also beginning to formalize the sector. In March, Ghana’s Securities and Exchange Commission approved 11 crypto trading platforms to enter a regulatory sandbox under its newly adopted Virtual Asset Service Providers Act.
At the user level, both Bitcoin and stablecoins are gaining traction for everyday financial use. In January, former UN under-secretary-general Vera Songwe said remittances have become “more important than aid” in Africa, with stablecoins emerging as a faster, lower-cost alternative to traditional transfers.
Speaking on Natalie Brunell’s Coin Stories podcast in March, Africa Bitcoin Corporation executive chairman Stafford Masie said Bitcoin is used as money in some local economies.
Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?
Activity-based rewards are allowed, but anything ‘economically equivalent to interest’ is barred.
Crypto industry leaders reviewed the draft stablecoin yield language in the Digital Asset Market Clarity Act during a closed-door session on Capitol Hill on Monday, and the opening reaction was that the text was overly narrow and unclear, according to CoinDesk.
The draft, negotiated by Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), bans yield payments for simply holding a stablecoin and restricts any structure that is economically equivalent to a bank deposit, CoinDesk reported. Activity-based rewards tied to loyalty programs, promotions, subscriptions, transactions, and platform use remain permitted, but the mechanics for determining what qualifies as a valid activity remain uncertain.
Circle shares fell 19%, while Coinbase dropped 8% on Tuesday after the draft raised the prospect of strict limits on stablecoin yield.
Coinbase CEO Brian Armstrong, who pulled the company’s support for the Clarity Act in January over yield restrictions, causing the Senate Banking Committee to postpone its markup, has yet to comment on the new text. Stablecoin-related revenue represented roughly 20% of Coinbase’s total revenue in Q3 2025.
The stablecoin yield question had been the single largest obstacle blocking the Clarity Act’s path through the Senate since January. Banks, led by the American Bankers Association, argued that stablecoin rewards could siphon deposits from traditional savings accounts. JPMorgan and Bank of America executives cited a Treasury study indicating that banks could lose up to $6.6 trillion in deposits if stablecoins offered unregulated yields, CNBC reported.
The GENIUS Act, signed into law in July 2025, barred stablecoin issuers from paying interest directly to holders but did not prevent third-party platforms from offering rewards — a gap that experts warned would become a key regulatory battleground.
What’s Next
The deal clears the primary hurdle for a Senate Banking Committee markup, now tentatively targeted for late April after the Easter recess. The bill had already been unlikely to advance before then, as Senate Majority Leader John Thune indicated earlier this month.
From there, the bill faces a full Senate floor vote requiring 60 votes, reconciliation with the Senate Agriculture Committee’s version passed in January, reconciliation with the House version that passed 294-134 in July 2025, and a presidential signature.
Polymarket currently prices the odds of the Clarity Act being signed into law in 2026 at roughly 63%.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
The new unit will coordinate policy development and work alongside the SEC’s Crypto Task Force.
The U.S. Commodity Futures Trading Commission (CFTC) on Tuesday announced the formation of an Innovation Task Force aimed at developing clearer regulatory frameworks for crypto assets, artificial intelligence, and prediction markets within U.S. derivatives markets.
“By establishing a clear regulatory framework for innovators building on the new frontier of finance, we can foster responsible innovation at home and ensure American market participants are not left on the sidelines,” Chairman Michael Selig said in a statement.
The unit will operate alongside the CFTC’s Innovation Advisory Committee, which was formed in February and includes more than 30 executives, including Kalshi CEO Tarek Mansour and Nasdaq CEO Adena Friedman.
According to the agency, the task force will concentrate on crypto assets and blockchain technology, artificial intelligence and autonomous systems, and prediction markets and event contracts.
The task force will also coordinate with other federal bodies, most notably the SEC and its Crypto Task Force, as both agencies continue to align their regulatory postures.
Interagency Alignment
The announcement extends a run of coordinated action between the two regulators. Earlier this month, the SEC and CFTC signed a memorandum of understanding formalizing their commitment to jointly oversee the digital asset sector.
That MOU followed the SEC’s March 17 interpretive release — arguably its most consequential crypto guidance to date — which classified 16 major tokens, including BTC, ETH, and SOL, as digital commodities that fall outside the SEC’s jurisdiction and are under the purview of the CFTC. The CFTC said it would administer the Commodity Exchange Act consistently with that framework.
Selig had telegraphed much of this agenda at the Milken Institute on March 3, where he said the CFTC was “modernizing” its rules to accommodate DeFi protocols and on-chain market infrastructure.
Prediction Markets in Focus
The inclusion of prediction markets as a core pillar of the task force underscores the CFTC’s intensifying push to assert federal jurisdiction over the rapidly growing sector. The agency launched a sweeping review of prediction markets on March 12 via an advance notice of proposed rulemaking.
Selig has also taken a combative stance against state gaming regulators that have challenged prediction market platforms, filing a friend-of-the-court brief in February in support of Crypto.com against the Nevada Gaming Control Board and warning that the CFTC “will no longer sit idly by” while states undermine its exclusive jurisdiction.
The momentum has coincided with major commercial developments in the space. Last week, Major League Baseball named Polymarket its exclusive prediction market partner and signed its own information-sharing MOU with the CFTC — a first for a professional sports league and the derivatives regulator.
The task force also arrives days after the CFTC granted no-action relief to Phantom, allowing the self-custodial Solana wallet to connect users to derivatives trading through registered market participants without having to register as a broker.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
Spanish authorities have taken a significant step in a high-profile, crypto-linked abduction case by detaining a suspect in Benalmádena, Málaga province, under a European arrest warrant issued by France. The man is accused of involvement in the kidnapping and torture of Ledger co-founder David Balland, with attackers demanding a 10 million euro ransom.
Balland was abducted from his home in central France on January 21, 2025, and held in captivity until a police operation freed him on the night of January 22. The case has since evolved into a cross-border pursuit, drawing in French and Spanish investigators as they unravel a network tied to the crime. French authorities had previously identified and arrested other members of the group, with the remaining suspect believed to have fled to Spain to evade capture, according to Spain’s Civil Guard.
The Civil Guard’s statement underscored the scale and risk of the operation, noting the suspect’s dangerousness and the potential for the criminal organization to attempt a violent rescue. The suspect was located in Benalmádena after authorities traced movements across several Spanish provinces, a thread that points to a coordinated, pan-European effort to dismantle the group behind Balland’s capture.
The arrest marks a notable juncture in a case that has drawn attention for its intersection with the broader crypto-security landscape in Europe. It also reflects an ongoing pattern of cross-border policing cooperation aimed at disrupting communities that leverage crypto networks for illicit activities. Balland’s kidnapping, and the ransom demand, amplifies concerns around the safety of prominent figures in the crypto space and the vigilance required by startups and investors alike. Cointelegraph previously reported on Balland’s abduction and release in January 2025.
Key takeaways
- The suspect was detained in Benalmádena, Spain, under a European arrest warrant issued by France, linked to the Balland kidnapping case.
- David Balland, Ledger co-founder, was abducted from central France on January 21, 2025, and released by police on January 22, with a ransom demand of 10 million euros.
- Investigators traced the suspect’s movements across Valencia, Seville, and Cádiz before the arrest, including use of rental apartments and a third-party bank card to avoid detection.
- The arrest comes amid a broader wave of crypto-linked crime in France during 2025, including a June arrest campaign involving 25 suspects in crypto-related kidnappings and other related incidents.
- The case illustrates the growing security risks facing crypto figures and the value of cross-border cooperation in pursuing organized criminal networks tied to the crypto ecosystem.
Cross-border pursuit: from France to Spain
Authorities described a long-running, transnational chase that culminated in the suspect’s detention in the Andalusian town of Benalmádena. The operation required substantial resources due to the suspect’s perceived danger and the risk of intervention by associates who might attempt to free him. The investigation traced the individual through the Valencia region, where he lived with a partner and a friend, and noted that the group had minimized their footprint by renting apartments via online platforms and using a third party’s bank card to obscure financial links.
French investigators had already identified several other members of Balland’s attackers and pursued leads across borders. The French side has emphasized that the remaining suspect initially fled to Spain in an attempt to dodge capture, highlighting the challenges inherent in coordinating legal processes across jurisdictions in time-sensitive, violent-crime scenarios.
Crypto-linked crime in France: a mounting challenge
The Balland case sits within a broader pattern of crypto-linked criminal activity that tightened its grip on Europe’s crypto scene in 2025. In June, French authorities charged 25 suspects in a spree of kidnappings and attempted abductions targeting crypto executives and investors, according to reporting on the period. In another incident, a crypto user was abducted and held for hours in France, with attackers seeking cash and access to a hardware wallet containing a sum of funds. Earlier in the year, the daughter and grandson of Pierre Noizat, former CEO of Paymium, were targeted in an attempted abduction; the victims resisted and escaped. These events collectively elevated concerns about personal safety for crypto figures and the security of crypto-linked assets in real-world spaces.
As authorities pursue these investigations, industry observers are watching for how such criminal activity might influence security practices, governance standards at crypto companies, and the broader risk management landscape faced by the sector. For investors and builders alike, the trend underscores the necessity of robust physical and cyber risk controls, as well as ongoing collaboration with law enforcement to protect personnel and assets involved in the crypto economy. Cointelegraph has covered these developments as part of a wider conversation about security threats in the crypto space.
Implications for the ecosystem and what to watch next
The Benalmádena arrest reinforces the reality that crypto-linked crime extends beyond digital schemes into violent, real-world actions, and it tests the interoperability of European legal frameworks in urgent, cross-border contexts. Stakeholders should monitor how this case informs anti-kidnapping and asset-seizure protocols, as well as the sharing of intelligence between French and Spanish authorities and their counterparts across the EU. The ongoing investigation could yield new details about the operational methods of the criminal network, including how they leveraged crypto-related assets and platforms to finance or conceal their activities.
For the crypto industry, the episode is a reminder of the non-technical risks that surround high-profile figures and firms. As jurisdictions tighten oversight and enforcement actions expand, companies may increasingly emphasize contingency planning, staff security training, and clear incident response playbooks. Observers will also be watching for any further cross-border action tied to Balland’s case and related crypto-crime activity, and for how authorities weigh sanctions, asset tracing, and criminal network disruption in future prosecutions. Earlier coverage by Cointelegraph noted Balland’s abduction and subsequent release, and industry coverage continues to analyze how these developments intersect with regulatory and security dynamics across Europe.
Readers should stay attentive to updates from French and Spanish authorities as the investigation unfolds, and to how prosecutors frame charges or reveal new connections within the broader network involved in crypto-linked violence.
CESR, the Composite Ether Staking Rate, is emerging as Ethereum’s reference rate, underpinning swaps, futures and risk models as institutions chase transparent on‑chain yield.
Summary
- CESR, the Composite Ether Staking Rate, has emerged as a key benchmark for Ethereum staking yields, tracking the mean annualized return earned by active validators.
- The rate captures consensus rewards and priority transaction fees, and is now referenced by institutional derivatives products such as Rho Labs’ ETH staking rate swaps and futures.
- Market participants say CESR is laying the groundwork for a full forward rate curve in crypto, mirroring how LIBOR and SOFR underpin trillions of dollars in traditional finance.
The Composite Ether Staking Rate, or CESR, is rapidly becoming Ethereum’s reference rate, giving institutions a transparent benchmark for staking yields that can underpin loans, swaps and structured products across the crypto market. CoinDesk Indices and CoinFund describe CESR as “a global floating rate benchmark derived from the daily transaction fees and staking rewards emitted from the Ethereum Proof of Stake blockchain,” designed to serve as a neutral yardstick for on-chain income.
CESR sets a staking yield benchmark for Ethereum
The index captures all relevant block rewards paid to validators, including new ETH issuance, transaction fees and maximal extractable value, while also accounting for withdrawals and slashing, and is calculated and published daily, seven days a week.
Chris Perkins, president of CoinFund, called CESR “a defining institutional reference rate for the crypto asset class,” arguing that it can “spur investment product growth and new opportunities for risk management across global finance.” Alan Campbell, president of CoinDesk Indices, said the benchmark is “a foundational piece of infrastructure to crypto-asset markets,” noting that it builds on the firm’s experience running some of the longest-standing digital asset indices. Both executives frame CESR as crypto’s answer to classic interest-rate benchmarks, capable of becoming a new discount rate and allowing assets “across the digital domain to be priced as a relative investment to CESR.”
The benchmark is already being put to work. FalconX said it completed “the first fixed-floating interest rate swap on Ethereum staking yields using CESR,” using the index to hedge and trade the path of staking returns. Rho Labs has launched a liquid staking-rates market that references CESR, with the protocol’s first futures contracts allowing institutional counterparties to lock in fixed returns or speculate on future ETH staking yields. Rho founder Alex Ryvkin said CESR lets traders “manage risk from Ethereum staking yields and transaction costs more efficiently, and lock-in fixed rates of return,” adding that staking yields are “table stakes for serious ETH-based products and services.”
Treehouse Finance notes that CESR effectively captures the mean, annualized staking yield of Ethereum’s validator set, providing a standardized rate that can be slotted into risk models and pricing frameworks alongside traditional benchmarks. Lukka, a provider of institutional crypto data, has also partnered with CoinDesk Indices to distribute CESR to asset managers and analysts, emphasizing that the index incorporates deposits, withdrawals and penalties to deliver “a complete and reliable benchmark” for institutional use. As Perkins put it, “staking rates are to crypto what interest rates are to traditional financial markets,” and CESR is intended to unlock the “$500 trillion traditional rates markets across the crypto industry” by giving yield-focused investors a single, trusted reference point.
Lombard, a company building Bitcoin-based lending infrastructure, will team with Bitwise Asset Management to enable institutions to earn yield and borrow against Bitcoin (BTC) without moving assets out of custody, aiming to unlock hundreds of billions of dollars in Bitcoin held in institutional custody.
The partnership was announced Tuesday at the Digital Asset Summit in New York.
Jacob Phillips, CEO and co-founder of Lombard, told Cointelegraph:
The breakthrough is Bitcoin Smart Accounts—connecting two previously isolated worlds: institutional custody and onchain finance.
According to an announcement shared with Cointelegraph, Bitwise will develop yield strategies combining DeFi lending with tokenized real-world assets, while Morpho, a decentralized lending protocol, will provide the lending infrastructure for borrowing against Bitcoin.
The platform uses Bitcoin-native tools such as partially signed transactions and timelocks to verify collateral, allowing positions to be represented onchain without transferring or rehypothecating the underlying assets.
Rather than relying on bridges or wrapped assets, Phillips said “Bitcoin Smart Accounts eliminate all three risk vectors simultaneously,” addressing custody, bridge and counterparty risks that have historically limited institutional Bitcoin lending.
The offering targets high-net-worth individuals, asset managers and corporate treasuries seeking to put long-held Bitcoin positions to work without changing custody arrangements.
The rollout is expected in the second quarter of 2026, with Lombard planning to add more custodians and protocols to expand access across institutional Bitcoin holdings.
Phillips said the model could change how institutions approach Bitcoin allocations:
We’re moving Bitcoin from a pure store of value to productive institutional capital. That’s the shift.
That’s because Bitcoin in institutional portfolios has historically functioned as a passive store of value, he said, with limited options to generate yield or access liquidity without exiting custody, taking on counterparty risk or triggering taxable events.
Lombard estimates that $500 billion worth of the biggest crypto is held in institutional custody, much of which remains outside onchain financial markets.
Related: Sygnum Bank bets on Bitcoin lending with multisignature custody model
Bitcoin DeFi gains traction as vaults and lending expand
Data from DefiLlama shows Bitcoin’s total value locked in DeFi at roughly $2.93 billion, a small fraction of its approximately $1.4 trillion market capitalization. However, momentum is beginning to build as efforts to turn Bitcoin into a yield-generating asset gain traction.
One key driver is the rise of onchain vaults, which function like automated investment funds that deploy user capital across DeFi strategies. In January, Bitwise announced a tie-up with DeFi lending protocol Morpho to launch non-custodial vaults designed to generate yield through overcollateralized lending.
The trend has accelerated in recent months. In February, Telegram added yield-generating vaults to its built-in crypto wallet, allowing users to earn returns on Bitcoin, Ether and USDT within the app.
In March, Bitcoin staking protocol Babylon integrated with hardware wallet maker Ledger, enabling users to deploy BTC in financial applications while maintaining self-custody through hardware-based transaction signing.
At the time of writing, Babylon Protocol leads Bitcoin-based DeFi with about $2.8 billion in total value locked, while Lombard ranks second with around $744 million.
Magazine: Banks want to run Vietnam’s crypto exchanges, Boyaa’s $70M BTC plan: Asia Express
Crypto World
The $75,000 line in the sand: What it’ll take for BTC price to go “full bull”: Crypto Daybook Americas
By Omkar Godbole (All times ET unless indicated otherwise)
Bitcoin and the wider crypto market are pushing higher despite the geopolitical whiplash. While the resilience is impressive, a bullish trend change needs a firm move above $75,000.
On Monday, President Donald Trump disclosed a five-day delay in strikes on Iran, claiming talks are underway. That calmed markets and lifted bitcoin to over $71,000. The optimism did not last long. Iran quickly denied talks, and Israel continued its attacks on the country, which responded by targeting Tel Aviv overnight.
Still, bitcoin held steady and is looking to extend yesterday’s 4.47% surge, the biggest since March 4. Ether (ETH), XRP (XRP) and solana (SOL) are following BTC’s lead, as usual, alongside a 24-hour jump of 4% in the CoinDesk 20 Index.
Though the move higher is encouraging for bulls, the real test will be around $75,000, which has been a major turning point at least twice in the past 12 months. The March-April 2025 slide ran out of steam at around $75,000, while the early 2024 rally faced resistance there. Furthermore, $75,000 corresponds to key Fibonacci retracement levels.
“Although the leading cryptocurrency did not immediately capitalize on the upward momentum and extend its gains, simply remaining at these high levels now suggests confidence among the bulls. They are gradually developing a more optimistic outlook,” Alex Kuptsikevich, chief market analyst at the FxPro, said in an email.
“However, it would be premature to declare the end of the downtrend until prices settle above $75K, where the March pivot points and the 61.8% Fibonacci retracement level from the January-February decline are concentrated.”
In other words, a convincing move above $75,000 would confirm a bull revival. Solana’s SOL token, which is trading near $90, could emerge as a star performer in that case.
“Sol is the brighter spot. Near 91$, it is showing that risk appetite is not dead. The institutional privacy framework angle matters longer term because it is about making Sol tradable for bigger pools of capital, not just faster for retail,” Marex’s research team, led by crypto trading analyst Louis De Backer, said.
In the meantime, demand from crypto investors for traditional assets is pushing exchanges to expand their offerings, with a race underway to launch 24/7 stock perpetual futures. Today, OKX announced the launch of more than 20 equity perpetual swaps, giving traders round-the-clock exposure to some of the world’s most popular stocks.
In traditional markets, the focus remains on volatility in U.S. Treasury yields, which could cap upside in risk assets in the near term. Over time, sustained volatility may prompt intervention from the Federal Reserve, potentially setting the stage for a stronger risk-on environment. Stay alert!
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today
What to Watch
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.
- Crypto
- Macro
- March 24, 8:15 a.m.: U.S. ADP Employment Change Weekly (Prev. 9K)
- March 24, 9:45 a.m.: U.S. S&P Global Composite PMI Flash for March (Prev. 51.9); Manufacturing PMI (Prev. 51.6); Services PMI (Prev. 51.7)
- March 24, 6:30 p.m.: Fed Gov. Michael Barr Speech on “Economic Outlook and Community Development” at National Community Investment Conference, Phoenix
- Earnings (Estimates based on FactSet data)
- March 24: GameStop (GME), post-market, $0.31
Token Events
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.
- Governance votes & calls
- Unlocks
- Token Launches
Conferences
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.
Market Movements
- BTC is up 0.57% from 4 p.m. ET Wednesday at $71,224.20 (24hrs: +4.30%)
- ETH is unchanged at $2,159.68 (24hrs: +5.85%)
- CoinDesk 20 is up 0.34% at 2,046.50 (24hrs: +4.15%)
- Ether CESR Composite Staking Rate is down 2 bps at 2.81%
- BTC funding rate is at 0.0063% (6.8602% annualized) on Binance
- DXY is up 0.34% at 99.29
- Gold futures are up 0.28% at $4,416.60
- Silver futures are up 1.44% at $70.04
- Nikkei 225 closed up 1.43% at 52,252.28
- Hang Seng closed up 2.79% at 25,063.71
- FTSE 100 is down 0.20% at 9,874.59
- Euro Stoxx 50 is down 0.47% at 5,548.16
- DJIA closed on Monday up 1.38% at 46,208.47
- S&P 500 closed up 1.15% at 6,581.00
- Nasdaq Composite closed up 1.38% at 21,946.76
- S&P/TSX Composite closed up 1.81% at 31,883.81
- S&P 40 Latin America closed up 2.07% at 3,222.70
- U.S. 10-Year Treasury rate is down 6 bps at 4.33%
- E-mini S&P 500 futures are down 0.18% at 6,623.00
- E-mini Nasdaq-100 futures are down 0.10% at 24,383.75
- E-mini Dow Jones Industrial Average futures are down 0.23% at 46,415.00
Bitcoin Stats
- BTC Dominance: 59.12% (0.07%)
- Ether-bitcoin ratio: 0.03033 (-0.06%)
- Hashrate (seven-day moving average): 983 EH/s
- Hashprice (spot): $33.61
- Total fees: 2.45 BTC / $171,175
- CME Futures Open Interest: 116,490 BTC
- BTC priced in gold: 16.1 oz.
- BTC vs gold market cap: 4.75%
Technical Analysis
- The chart shows ether’s daily price swings in candlestick format since May 2025.
- The ETH price appears stuck in a choppy back-and-forth trading range, within a broader bearish trend.
- A potential move past $2,440 would confirm a dual breakout, signaling a bullish shift.
Crypto Equities
- Coinbase Global, Inc. (COIN): closed on Monday at $200.62 (+1.58%), +0.78% at $202.18 in pre-market
- Galaxy Digital (GLXY): closed at $21.70 (+4.73%), +0.28% at $21.76
- MARA Holdings, Inc. (MARA): closed at $8.91 (+5.32%), +0.56% at $8.96
- Riot Platforms, Inc. (RIOT): closed at $14.37 (+7.40%), +0.42% at $14.43
- Core Scientific, Inc. (CORZ): closed at $16.58 (+4.87%), –0.18% at $16.55
- CleanSpark, Inc. (CLSK): closed at $9.98 (+6.17%), +0.50% at $10.03
- Exodus Movement, Inc. (EXOD): closed at $8.12 (+10.03%), unchanged in pre-market
- CoinShares Bitcoin Mining ETF (WGMI): closed at $39.40 (+4.56%), +0.15% at $39.46
- Circle Internet Group (CRCL): closed at $126.64 (+0.48%), –0.39% at $126.15
- Bullish (BLSH): closed at $39.55 (+4.16%), –0.96% at $39.17
Crypto Treasury Companies
- Strategy (MSTR): closed at $138.20 (+1.87%), +0.61% at $139.04
- Strive Asset Management, LLC (ASST): closed at $10.44 (+4.19%), –0.48% at $10.39
- Sharplink, Inc. (SBET): closed at $7.51 (+1.49%), unchanged in pre-market
- Upexi, Inc. (UPXI): closed at $1.17 (+10.38%), +0.85% at $1.18
- Lite Strategy, Inc. (LITS): closed at $1.18 (+0.85%)
ETF Flows
Spot BTC ETFs
- Daily net flows: $167.2 million
- Cumulative net flows: $56.38 billion
- Total BTC holdings ~1.29 million
Spot ETH ETFs
- Daily net flows: -$16.2 million
- Cumulative net flows: $11.74 billion
- Total ETH holdings ~5.8 million
Source: Farside Investors
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