In today’s newsletter, Paul Frost-Smith, CEO of Komainu, covers how institutional crypto is converging with traditional finance, but speed can introduce risk if legal and compliance layers aren’t aligned.

Then, in “Ask an Expert,” Sam Boboev, from the “Fintech Wrap Up,” details the key coordination risks institutions must solve for.

Beyond custody: why connectivity will define the next era.

Institutional crypto markets

Institutional adoption of crypto has matured rapidly. The challenge is no longer simply securing assets, but moving and managing them efficiently across a fragmented ecosystem of custodians, exchanges and counterparties. With assets under professional custody now exceeding $200 billion, the inefficiencies of siloed infrastructure have an increasingly material impact on trading, hedging and liquidity management.

Treasury teams often find assets stranded across multiple platforms, creating operational friction that slows trades, constrains intraday liquidity and increases risk exposure. Idle assets tie up capital, amplify counterparty risk and raise the cost and complexity of managing institutional portfolios. In a 24/7 market where speed, execution and real-time visibility matter, the ability to mobilise capital across platforms is no longer optional, it is a prerequisite for scale, efficiency and resilience.

The next phase of market evolution will be defined by connectivity. Platforms that link custody, liquidity and collateral in real time are no longer “nice to have,” they are critical infrastructure. Networked systems enable assets to move faster, collateral to be rehypothecated safely and positions to be adjusted instantly without the delays inherent in siloed setups. Institutions that can leverage integrated infrastructure gain a direct advantage in capital efficiency, risk management and operational agility.

Technologies such as Bitcoin’s Liquid Network illustrate the potential. By combining security, transparency, and near-instant settlement, these networks provide a model for institutions to operate efficiently while mitigating counterparty and operational risk. Assets that are digital-native and programmable can be pledged, transferred and released automatically according to predefined rules, bringing crypto markets closer to the operational standards expected in traditional finance.

The implications are clear. The efficiency and integration of underlying infrastructure directly affect portfolio outcomes. A digital asset’s value is no longer defined solely by its market price; mobility and utility are just as important. Firms that can connect these “pipes” of digital finance gain better liquidity, faster execution and strategic flexibility at scale, enabling them to deploy capital more effectively across trading, hedging and yield-generating activities.

This shift also signals a broader trend, with custody evolving beyond its traditional role. Once synonymous with storage, it now functions as a dynamic, active layer that validates, transfers, and interacts with assets programmatically. Institutional investors evaluating service providers should look beyond security and regulatory compliance to consider the ability to support fast, interconnected and reliable market activity.

Looking ahead, interoperability and network connectivity, not just regulatory clarity, will define which institutions can scale efficiently in crypto markets. Those that build their strategies around connected, integrated infrastructure will be positioned to capitalise on opportunities that siloed competitors cannot.

As institutional participation deepens, the competitive edge in crypto markets will increasingly come from how effectively firms can deploy and mobilise capital. Connectivity, interoperability and real-time collateral mobility will define the infrastructure institutions rely on to trade, hedge and manage risk at scale. Those that prioritise integrated systems today will be better positioned to navigate a market that is becoming faster, more interconnected and more operationally demanding.

– Paul Frost-Smith, CEO, Komainu

Ask an Expert

Q1: What defines the next phase of institutional crypto market structure?

The next phase is defined by convergence with traditional financial infrastructure. Crypto is no longer operating as a parallel system; it is being absorbed into existing institutional frameworks. This shows up in three areas: regulated custody, tokenized financial instruments and stablecoins as settlement rails. Institutions are not adopting crypto for speculation, but for balance sheet efficiency, faster settlement and programmable financial flows. The market structure is shifting from exchange-led liquidity to infrastructure-led integration.

Q2: Where is the real value being created right now?

The value is moving down the stack into infrastructure. Custody, tokenization platforms and stablecoin issuance are becoming the core control points. These layers determine how assets are issued, transferred and settled. Distribution still matters, but control over settlement and asset representation is where defensibility is forming. This is why we are seeing traditional players focus on tokenized money market funds, on-chain repo and institutional-grade stablecoins.

Q3: What are the key risks institutions need to solve for?

The primary risk is not volatility, but coordination across legal, technical and operational layers. Tokenized assets can settle instantly, but ownership rights, compliance rules and jurisdictional enforcement still operate off-chain. This creates a structural mismatch. Institutions need systems where the ledger, compliance logic and legal frameworks are aligned. Without that, speed introduces risk rather than efficiency.

– Sam Boboev, founder, Fintech Wrap Up

Keep Reading

• Bitcoin enters the public bond market as Moody’s gives a first-of-its-kind crypto deal a rating.
• Franklin Templeton is launching a dedicated cryptocurrency division, Franklin Crypto, anchored by its planned acquisition of crypto investment firm 250 Digital.
• Australia has passed its first comprehensive crypto law, requiring exchanges and custody platforms to obtain financial services licenses within six months.

Coinbase (COIN) said Thursday it had received initial approval for a national trust company charter from the U.S. Office of the Comptroller of the Currency, Bloomberg reported, marking a step toward it operating as a federally regulated crypto custodian.

The approval is not final. It is a conditional green light that sets out requirements Coinbase must meet before it can receive a full charter. These typically include building out compliance systems, hiring key personnel and undergoing regulatory reviews. The OCC also expects firms to show they can manage risk, protect client assets and follow anti-money laundering rules. Only after those steps are complete can the agency grant full approval.

“We still need final approval… our business will not operate under an OCC charter until we have that final approval,” Paul Grewal, chief legal officer at Coinbase told CoinDesk. “This next phase allows us to get into more detail on how we can extend our business in ways that are exciting and important for crypto’s development.”

If finalized, the charter would allow Coinbase to run a non-insured national trust company. That structure permits the firm to hold digital assets on behalf of clients but bars it from taking deposits or making loans.

Coinbase first applied for the charter in October, alongside firms such as Ripple. More recently, Citadel-backed exchange EDX Markets said it had filed for a similar structure. The cluster of applications points to growing demand for regulated custody as large investors enter crypto markets.

For institutions, custody is less about trading and more about trust. A pension fund, for example, may want exposure to bitcoin but needs a regulated entity to hold the asset securely. A federal charter can provide that assurance in a way state licenses may not.

The move aligns with Coinbase’s effort to rely less on trading fees, which can swing with market cycles. Custody offers steadier revenue. The company already acts as custodian for several U.S. spot bitcoin exchange-traded funds, holding the underlying assets on behalf of fund managers.

“The big opportunity going forward would be payments… custody-adjacent but separate,” Grewal said. “We think we’ll be able to offer a much wider range of products and services to our customers than ever before.”

UPDATE (April 2, 16:57 UTC): Adds comments from Coinbase chief legal officer Paul Grewal.

Cifra Markets aims to bring regulated, transparent access to crypto in a $2.55 trillion global market.

At the time of writing, the global cryptocurrency market is a $2.55 trillion market, yet millions of users still lack access to a regulated, transparent gateway into digital assets. Unverified peer-to-peer platforms, unregulated online exchangers, and offline dealers with questionable liquidity have long dominated the space. Cifra Markets is changing that.

In this project review, we take a deep dive into Cifra Markets to understand the unique features that set it apart.

Overview

Website: https://cifra.by/en/

Sector: Crypto broker

Supported coins: 300+ cryptocurrencies

Margin trading support: Yes

KYC verification: Required

Tokenized US stocks: Offered

What is Cifra Markets?

Cifra Markets is a licensed crypto brokerage firm operating from the Republic of Belarus, a country where cryptocurrencies have been legal and regulated at the state level since 2017. It was among the first brokers to get a license in the jurisdiction, a testament to its commitment to regulatory compliance, and establishing trust within a highly competitive financial market.

Cifra is positioned as a legal alternative to P2P crypto exchanges and operates in the Commonwealth of Independent States (CIS) region, Asian, and Middle Eastern markets. It also provides crypto trading through partnerships with regulated crypto exchanges.

What makes Cifra unique?

1.      Security is at the heart of Cifra Markets. The company operates as a registered resident of the High Tech Park (HTP) in Belarus. By operating in this region, Cifra adheres to strict requirements on asset custody, cybersecurity, independent technical auditing, and client service quality. This helps the platform to bring institutional-grade compliance to crypto users, a combination that has historically been unavailable for brokers operating in the region.

2.      Cifra Markets has built its infrastructure based on principles commonly used in traditional financial standards. The platform integrates with multiple partner banks to enable instant fiat deposits and withdrawals.

3.      To ensure that every transaction on the platform is legal, Cifra Markets imposes strict AML standards for all deposited cryptocurrencies. Every transaction is screened by blockchain analytics firms, such as Elliptic, and Shyft, to verify the “cleanliness” of digital assets before they are credited to client accounts. If funds are linked to sanctioned addresses or illicit activity, they are rejected and automatically returned to the original blockchain address.

4.      Users are able to purchase cryptocurrency using fiat through bank transfers. They can also convert fiat into crypto, or from fiat to crypto, by using any bank in the CIS. Users can choose to deposit and withdraw funds in US dollars, euros, Belarusian Rubles, or Russian Rubles.

5.      The platform provides users with access to over 300 cryptocurrencies as well as tokenized U.S. stocks, such as AAPLX, GOOGLX, NVDAX, AMZNX, HOODX, CRCLX, and more.

6.      Cifra offers margin trading with leverage of up to 5x, allowing traders to enter large positions with a smaller initial capital.

7.      Cifra Markets has its own trading interface and technology stack, including a Mini App designed to simplify access for beginners. This aims to reduce the complexity often associated with large global exchanges, making the platform accessible for a wide range of users.

8.      Fiat and USDT can be exchanged directly through the order book in the trading application, where prices are set by participants placing their orders. For larger transactions, users have access to an OTC desk.

How to get started

Getting started on Cifra is easy and straightforward.

Firstly, add a working email address and a strong password, and then click on sign up to continue.

Next, enter a valid phone number. A one-time password (OTP) will be sent to this number, which must be verified before proceeding to the next step.

After an OTP is confirmed, the “Personal details” tab will open. Click on “Go to the next step” to proceed.

To open an account, enter additional details like citizenship, tax identification number, and location, then confirm that the data entered is correct. A progress bar at the top indicates how much of the required information has been completed.

Once the personal information is entered, the next step is to sign the agreement and open an account.  

A new tab will open requesting a KYC link via SMS. The link will be sent to the phone number specified earlier. After successful KYC verification, the account will be ready to use.

Who is Cifra best suited for?

Cifra is well-suited for both retail and corporate clients, offering features that cater to individual traders as well as institutional or business-level needs. Retail traders can use the platform for straightforward activities such as buying and holding cryptocurrencies, while institutional clients can leverage advanced tools, including margin trading, tokenized assets, and portfolio management features.

Public review

With a 4.4-star rating on Google Play Store, the Cifra Markets app appears to be a reliable and user-friendly platform for cryptocurrency trading. In one of teh comments, a user said, “A convenient and user-friendly app for working with cryptocurrency. I liked that everything is official and transparent: it’s easy to open an account, there is access to popular coins, and different types of trading. Payments are familiar, support responds quickly, and using it is comfortable.”

However, one user said he was experiencing difficulties logging into the app. The issue was promptly resolved by Cifra’s customer support team, who guided him through the steps to access his account. This demonstrates the company’s responsiveness in addressing user concerns.

Conclusion

Cifra Markets stands out as a regulated, secure, and user-friendly gateway into the world of cryptocurrency. By combining state-level licensing in Belarus, robust AML compliance, and institutional-grade security standards, the platform offers a trustworthy alternative to unverified P2P exchanges that have long dominated the market. Its comprehensive infrastructure, including access to 30+ cryptocurrencies, tokenized U.S. stocks, and margin trading, caters to both retail and institutional users, making crypto trading accessible and efficient for a wide range of participants.

Beyond its technical capabilities, Cifra’s focus on transparency, ease of use, and responsive customer support reinforces its commitment to building confidence among users. For traders and businesses seeking a reliable, legally compliant, and fully-featured crypto brokerage in the CIS and beyond, Cifra Markets delivers a compelling solution that blends security, innovation, and accessibility in one platform.

Coinbase’s x402 protocol has formally joined the Linux Foundation, with the goal of turning its AI-focused payments stack into an open, standardized layer for internet-native transactions, according to reporting from CoinDesk. Designed to embed stablecoin payments directly into the HTTP 402 “Payment Required” status code, x402 lets APIs, apps and AI agents pay for services programmatically over the web without bolted-on billing flows.

To steward the standard, Coinbase and Cloudflare have created the x402 Foundation, with Stripe as a founding member and a broader coalition of payments and tech companies signaling plans to join. The ecosystem site lists Adyen, Amazon Web Services, American Express, Ant International, Base, Circle, Google, KakaoPay, Mastercard, Microsoft, Polygon Labs, Shopify, Solana Foundation and Visa among organizations that have expressed intent to participate as contributors or partners.

Linux Foundation chief Jim Zemlin said the x402 Foundation will drive development of the protocol “in an open, community-governed way,” emphasizing principles of transparency, interoperability and broad participation. The governance model is designed to keep x402 vendor-neutral: the specification is licensed under Apache 2.0, with “zero protocol fees, zero account creation, zero vendor lock-in,” and any server stack able to implement it in a short timeframe, as one analysis of the emerging payments race put it.

James Tromans, managing director for Google Cloud’s Web3 and digital assets business, said Google’s participation in the foundation reflects a commitment to “supporting interoperable, AI-driven transaction standards” that can work across clouds and networks. Stripe, meanwhile, has added x402 support on Base while also promoting its own solutions, effectively hedging by backing an open protocol alongside proprietary rails, according to recent ecosystem coverage.

Launched by Coinbase in 2025, x402 was pitched as a way to let AI agents, browsers and back-end services pay directly for APIs, content and compute by piggybacking on the existing HTTP request/response flow. A Coinbase developer post explained that a server can respond with a 402 code and payment terms, the client can settle in stablecoins such as USDC, and then automatically retry the request with a proof of payment, all without accounts, subscriptions or manual invoicing.

Cloudflare has already shipped x402 support in its Workers and AI Agents SDK, allowing developers to add machine-to-machine payments at the edge for use cases like model-to-model calls, paywalled APIs and streaming content. With the Linux Foundation now fronting governance and a cross-industry membership lining up behind the x402 Foundation, Coinbase is effectively betting that a neutral, open protocol can become the default way AI systems pay each other over the internet.

Key Takeaways

• The OCC has granted Coinbase conditional authorization to establish a federally chartered trust entity
• This charter is limited to custody operations and market infrastructure, excluding retail deposits and traditional banking
• Final approval hinges on Coinbase completing multiple regulatory and administrative requirements
• The federal designation is anticipated to expand Coinbase’s reach among institutional investors
• Coinbase’s current New York state trust charter and BitLicense continue operating without interruption

The Office of the Comptroller of the Currency has issued conditional authorization for Coinbase (COIN) to launch Coinbase National Trust Company, a federally chartered trust institution.

This OCC charter is tailored exclusively for custody operations and market infrastructure services. The crypto exchange will not accept consumer deposits or function as a conventional fractional reserve banking institution under this authorization.

According to Greg Tusar, Co-CEO of Coinbase Institutional, the clearance provides “federal regulatory uniformity to the custody and market infrastructure business we have been building for years.”

Coinbase filed its national trust charter application with the OCC in October of last year. The platform currently operates under a limited-purpose trust charter issued by the New York Department of Financial Services, which authorizes digital asset custody services at the state level through Coinbase Prime, its institutional division.

Coinbase Global, Inc., COIN

The federal charter represents a significant upgrade. “We’re the custodian to over 80% of the world’s digital asset ETFs, but there are a number of other asset managers and hedge funds and others that would like to see the entity that they face have this kind of charter,” Tusar explained.

Essentially, the OCC certification unlocks opportunities that state-level authorization alone cannot provide.

Coinbase’s institutional division reported $245.7 billion in assets under custody as of June 2025 — representing approximately 7% of the entire cryptocurrency market, based on figures from its charter filing.

Outstanding Requirements for Final Approval

Conditional authorization differs from full approval. Before the charter becomes operational, Coinbase must convene its inaugural board meeting, implement corporate bylaws, set up payment infrastructure, and successfully complete a pre-launch examination by the OCC.

The company has committed to collaborating closely with OCC regulators to satisfy all outstanding conditions.

Meanwhile, Coinbase’s existing New York BitLicense and state-level trust charter remain active and unchanged. Coinbase, Inc. continues its operations under NYDFS supervision without disruption.

Other Applicants Pursuing Federal Charters

Coinbase isn’t the only crypto firm seeking this regulatory status. The OCC granted conditional approvals to multiple digital asset companies late last year, including BitGo, Circle Internet Group, Fidelity Digital Assets, Ripple, and Paxos.

Additionally, EDX Markets — backed by Morgan Stanley and Citadel Securities — along with World Liberty Financial, the Trump family’s most significant cryptocurrency initiative, have submitted national trust charter applications.

The federal charter also establishes infrastructure for emerging payment solutions and complementary financial services, targeting both institutional partners and retail users as primary beneficiaries.

While Congress has moved forward with market structure legislation, federal supervision of crypto custody providers has remained inconsistent. This OCC approval fills that regulatory void for institutional services without requiring completed legislative action.

The US Office of the Comptroller of the Currency (OCC) has approved cryptocurrency exchange Coinbase’s application for a national bank trust charter after six months of consideration.

In a Thursday X post, Coinbase chief legal officer Paul Grewal said the company received conditional approval for the OCC application, following December approvals for Ripple Labs, BitGo, Circle, Fidelity Digital Assets and Paxos.

Although the company said in October it had “no intention of becoming a bank” if approved, the move by US regulators marks one of the most significant forays into bridging crypto and traditional finance.

“Coinbase is not becoming a commercial bank,” said vice president of institutional product Greg Tusar in a Thursday blog post. “We will not be taking retail deposits. We will not be engaging in fractional reserve banking. This charter is about bringing federal regulatory uniformity to the custody and market infrastructure business we have been building for years.”

Tusar said that the company would continue to operate under the Department of Financial Services in New York, where it holds a BitLicense and a state charter as a limited-purpose trust company.

The OCC approval, coupled with Coinbase’s state-level efforts, came as the company is in the middle of a debate on issues stalling a digital asset market structure bill in Congress, including over stablecoin yield.

CEO Brian Armstrong said in January that the exchange could not support the legislation as written. Lawmakers on the Senate Banking Committee later postponed a markup, which is necessary before a potential floor vote on the bill.

Related: Coinbase exec says Senate CLARITY compromise is close, but no markup date set

At the time of publication, the OCC website showed no change to Coinbase’s application, which it marked as received by the banking regulator. Cointelegraph reached out to the exchange for comment but did not receive an immediate response.

Coinbase faces legal pushback over prediction markets

The crypto platform rolled out prediction market bets for US-based users in January as part of a partnership with Kalshi.

In lawsuits filed preemptively against state gaming authorities in Connecticut, Illinois and Michigan, Coinbase argued that the US Commodity Futures Trading Commission, as a federal regulator, had the authority to oversee prediction markets. Many of the cases were ongoing as of Thursday.

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