Perpetuals launches UpsideOnly, an AI-powered ‘risk-free’ market prediction platform

Perpetuals.com Ltd, a Nasdaq-listed fintech group, has introduced UpsideOnly, a market prediction platform that lets users submit forecasts across equities, crypto, commodities and forex without staking personal capital. The company says it will execute trades with its own funds based on a proprietary AI model and distribute profits to users whose predictions help generate successful trades.

Perpetuals describes the service as a human-AI collaboration: participants contribute signals and the platform’s algorithm, BayesShield AI, applies those signals to make trading decisions. According to the company, BayesShield was trained on more than 22 billion retail trades, a dataset the firm says informs real-time signal refinement.

How UpsideOnly works

Users register and make directional predictions on various markets without depositing trading capital. Perpetuals evaluates those signals and, when its AI assigns sufficient probability to a forecast, the firm trades with its own capital. If a trade is profitable, the firm shares some portion of the gains with the users whose signals contributed to the decision. If a trade loses, Perpetuals absorbs the loss and users take no financial hit from the trade itself.

The product offers optional refundable deposits of $1 or more. Perpetuals says those deposits are not used for trading but are held in U.S. Treasury securities with an external fiduciary and are designed to deter bots. Users who place a deposit reportedly receive higher payout levels, reflecting the platform’s view that small deposits improve signal quality.

What the company claims and what to watch

Perpetuals positions UpsideOnly as a corrective to what it characterizes as an unfair retail trading ecosystem. The company argues that letting users contribute insight rather than capital aligns incentives differently from conventional retail broker models, where many individual traders lose money.

Key company claims include the scale of the training data behind BayesShield and the platform’s multi-asset coverage. Perpetuals also notes regulatory connections: an affiliate, PM MTF Ltd., operates under an EU multilateral trading facility regime and the firm cites compliance frameworks such as MiFID II, MiCA, DORA and EMIR for its European operations.

Market and regulatory implications

UpsideOnly sits at the intersection of several fast-evolving fintech trends: AI-driven trading, crowd-sourced forecasting and novel consumer products that blur the line between prediction markets and brokerage services. That mix could draw heightened regulatory attention.

Regulators will likely scrutinize how UpsideOnly is classified under securities, derivatives and gambling laws. The firm itself flags potential risks that the product could be characterized under gaming, sweepstakes or commodity-derivatives regimes, a point that reflects the legal complexity of monetizing user predictions when a firm executes trades on the back end.

Consumer protection authorities may also probe disclosure, the robustness of anti-abuse measures, and whether the model could incentivize risky behaviour from participants who do not face downside. The presence of refundable deposits intended to deter bots may not be sufficient, in regulators’ view, to address market manipulation or wash-trading risks without additional controls and transparency.

Business model and sustainability questions

At its core, the UpsideOnly model transfers trading downside to Perpetuals while offering users upside participation. That places a premium on three elements: the predictive edge of BayesShield, effective risk management at the firm level, and the durability of the signal sourcing mechanism.

Model performance and data limits. The company cites a very large retail trade dataset, but past performance and backtests do not guarantee future returns. Machine learning models trained on historical retail behaviour can be vulnerable to regime shifts, data biases and overfitting. The platform’s long-term profitability depends on whether the AI can identify persistent edges after costs and the profit split to users.

Capital and risk appetite. Perpetuals must bankroll losing streaks and market shocks, which could strain capital if the platform scales quickly or encounters rare adverse events. The firm’s Nasdaq listing gives it public-market access to capital, but sustained losses or drawdowns could prompt investor scrutiny.

Gaming the system. Prediction marketplaces and incentive systems attract strategic actors. Participants who try to exploit payout mechanics or coordinate signals could degrade signal quality and create losses. The refundable deposit is a modest deterrent and may reduce automated accounts, but it is not a comprehensive anti-abuse solution.

Industry context

UpsideOnly is part of a broader wave of products attempting to democratize alpha and repackage trading as an experience anchored by gamified inputs or social signals. The difference here is the explicit claim that retail users are shielded from trading losses because the firm executes trades with its own balance sheet.

That arrangement recasts users as signal providers rather than capital providers. Economically, that is similar to some prediction markets and algorithmic investment strategies that pay contributors for valuable information. Whether the economics scale as user volumes rise will be an important test of the concept.

Bottom line

Perpetuals’ UpsideOnly brings together crowd intelligence and an AI model trained on large retail datasets to offer participants exposure to trading gains without direct downside. The architecture raises meaningful questions about regulatory treatment, model risk, and capital sustainability. Market participants and regulators will be watching closely to see whether Perpetuals can convert user signals into repeatable returns while managing the operational, legal and financial risks inherent in underwriting trading losses.

Bloomberg has also reported on the launch, and Perpetuals has made its executive team available for interviews. The company cautions that “risk-free” refers specifically to user trading losses and does not eliminate operational or other platform risks.

Canaan Inc., a publicly traded Bitcoin mining company, posted a challenging first quarter for 2026 as weaker Bitcoin prices pressured margins and a large inventory write-down amplified losses. The company reported revenue of $62.7 million for the quarter ended March 31, down sharply from $196.3 million in the prior quarter, while net loss reached $88.7 million. The results highlight how a sustained dip in crypto prices can quickly erode mining profits even as operators expand their physical footprint.

Industrial mining equipment remained the driver of revenue, generating $39.6 million in the quarter but reflecting a 75% sequential drop. Self-mining contributed $19.1 million, and the home mining segment yielded $2.7 million, more than doubling year-on-year. A $25 million inventory write-down weighed on gross margins, contributing to a gross loss of $23 million and an operating loss of $54.3 million. The results were accompanied by a cautious near-term outlook from the company.

“Although average Bitcoin prices and hashprice declined significantly quarter-over-quarter, our bitcoin production experienced a comparatively smaller decrease, reflecting the resilience of our mining operations and continued hashrate deployment,” Jin (James) Cheng, chief financial officer of Canaan, said.

The quarterly numbers came with broader context from the sector. Several large miners — Riot Platforms, Core Scientific, CleanSpark and TeraWulf — have posted widening losses in Q1 as mining margins compressed under falling BTC prices. At times, investors have begun reassessing the strategy mix of miners who are expanding beyond coin production to alternative compute workloads, including artificial intelligence and high-performance computing, to shore up revenue streams.

Key takeaways

• Q1 revenue and loss profile: Canaan booked $62.7 million in revenue for the quarter ended March 31, with a net loss of $88.7 million. The company cited a substantial $25 million inventory write-down and a broader impairment of gross margins amid a softer price environment for Bitcoin.
• Hashrate growth and balance sheet exposure: Self-mining hashrate rose to 11 exahashes per second, up 66% from a year earlier, underscoring continued capacity expansion. Canaan held 1,808 Bitcoin on its balance sheet as of March 31, valued at roughly $121 million, illustrating the dual exposure to crypto prices and operational scale.
• Strategic capital and power advantages: The company completed the acquisition of Cipher Mining’s 49% stake in three West Texas joint ventures, increasing its aggregate hashrate capacity by about 4.4 EH/s and 120 megawatts of power. The deal was completed via share issuance, providing access to power costs below three cents per kilowatt-hour on the ERCOT grid.
• Guidance and near-term outlook: Canaan guided Q2 revenues to a range of $35 million to $45 million, signaling a further sequential decline as the sector contends with weak BTC pricing and ongoing margin pressure.
• Industry backdrop and diversification trend: The quarter sits within a broader industry context of rising losses among major miners, while several players explore AI and HPC as alternative revenue streams. The sector’s pivot toward compute workloads beyond pure mining reflects search for more stable cash flows as crypto cycles fluctuate.

Canaan’s expansion, a hedge against a difficult cycle

Beyond the quarterly numbers, Canaan’s strategic moves signal a deliberate effort to reduce operating risk in an environment of volatile cryptocurrency prices. The 11 EH/s self-mining capacity upgrade, up 66% year-over-year, demonstrates the company’s commitment to increasing production efficiency as BTC prices remain volatile. The company’s assertion that its bitcoin production declined less thanHashprice and price declines suggest a degree of operational resilience—an encouraging signal for a sector that often sees margins compress in downturns.

The Cipher Mining stake acquisition is particularly noteworthy. By gaining 49% control over three West Texas joint ventures totaling roughly 4.4 EH/s and 120 MW of capacity, Canaan gains not only scale but access to power arrangements described as below three cents per kilowatt-hour on the ERCOT grid. In a capital-intensive business where energy costs are a dominant input, such pricing advantages can materially influence unit economics during periods of modest BTC price appreciation.

The transaction, closed through a share issuance rather than a cash payment, also reflects a broader industry-wide preference to preserve cash while expanding operational capacity. If power costs prove durable at those levels, and if Bitcoin’s price recovers, Canaan’s expanded hashrate could translate into improved hashprice capture and a quicker return to profitability than peers less able to secure favorable energy terms.

Looking ahead, the company’s Q2 revenue guidance of $35 million to $45 million points to ongoing sequential weakness. This forecast acknowledges the still-fragile price environment for BTC and the need to balance expansion with financial discipline. Investors should weigh whether European and North American miners can better manage energy costs and operational leverage in the coming quarters, especially as the sector pursues AI compute workloads as a supplementary revenue source.

Industry momentum and investor sentiment

The broader mining landscape in Q1 shows a sector-wide struggle to maintain profitability. Major players such as Riot Platforms, Core Scientific, CleanSpark and TeraWulf reported widening losses as hashprice pressures persisted. In Mara’s case, a $1.3 billion net loss included roughly $1 billion in non-cash mark-to-market adjustments tied to Bitcoin holdings, underscoring how much crypto price swings can distort reported results.

As margins tighten, a growing segment of miners is exploring adjacent compute markets. HIVE Digital Technologies, for example, revealed plans to develop a 320-megawatt AI data center campus near Toronto designed to support more than 100,000 GPUs at full capacity. The move illustrates a broader strategic pivot: monetize infrastructure through high-demand AI workloads while keeping a base exposure to Bitcoin mining.

The current results and strategic shifts come at a time when the industry is weighing regulatory and macroeconomic risks that could shape future profitability. If Bitcoin remains range-bound or dips further, miners will continue to rely on cost controls, energy arbitrage, and portfolio diversification to weather a protracted downturn. On the other hand, a meaningful BTC price rebound could lift hashprice and unlock greater upside for operators with low-cost power agreements and scalable infrastructure.

Canaan’s stock reaction reflected the mix of disappointment and cautious optimism that defines the sector today. Shares closed down after the earnings release, with a momentum noted in the pre-market session as investors reassessed the company’s near-term profitability trajectory in light of the guidance and ongoing capacity expansion.

As the market absorbs these results, readers should watch for several key indicators: the durability of Canaan’s ERCOT-based power economics, any further updates on the Cipher Mining ventures, and how BTC price dynamics influence hashprice and mining margins across the sector. The combination of aggressive capacity growth, price-sensitive revenue, and energy cost leverage will continue to dictate which miners emerge stronger from the current cycle.

In the near term, the central question remains whether BTC prices stabilize enough to lift mining economics, and whether the AI/HPC pivot provides sustainable revenue diversification for industry players. The answers will shape not only which companies survive but also how the long-term narrative for crypto mining evolves in an environment where energy cost and compute demand increasingly intersect.

Readers should stay tuned for updates on Canaan’s next quarterly results, any further capital moves tied to its joint ventures, and new datapoints on hashprice trajectories as macro conditions unfold.

A European regulator has partially suspended the operating license of the company behind troubled crypto exchange Zondacrypto.

The Financial Intelligence Unit (FIU) of Estonia partially suspended the license of BB Trade Estonia OÜ, operating under the Zondacrypto brand, according to a statement on Monday.

According to the FIU, the company is now barred from accepting deposits and onboarding new clients, while existing users are still allowed to withdraw their funds.

The suspension puts BB Trade Estonia OÜ at risk of losing its operating license if it does not meet compliance requirements set by Estonian authorities.

Source: FIU

Zondacrypto faces broader regulatory scrutiny in Europe following withdrawal issues and its CEO saying that an exchange cold wallet holding about 4,500 Bitcoin ($345.9 million) was inaccessible.

A 30-day compliance window and potential license revocation

The FIU said that BB Trade Estonia OÜ has 30 days to bring its operations into compliance with legal requirements following the partial suspension of its license.

“If it fails to do so, the law obliges the FIU to revoke the operating license,” the regulator said.

The FIU did not specify what compliance breaches led to the suspension. Cointelegraph contacted the authority for comment but did not receive a response at the time of publication.

Estonia’s Financial Supervision and Resolution Authority (FSA) previously issued a warning against BB Trade on May 8, saying its “TeamPL” crypto token violated the European Union’s Markets in Crypto-Assets Regulation (MiCA) because it was listed without a white paper.

Zondacrypto at center of regulatory debate in Poland

The suspension comes amid broader concerns around Zondacrypto, including reported withdrawal issues and past comments by Polish Prime Minister Donald Tusk referencing around 30,000 potential victims linked to crypto-related losses.

Market data from CoinGecko shows little to no recent trading activity on the exchange at publishing time.

Cointelegraph was unable to reach Zondacrypto for comment, as email attempts bounced at the time of publication. Key BB Trade staff also left the company following earlier developments involving the exchange.

Founded in Poland in 2014 as BitBay, Zondacrypto has grown into a major European crypto exchange, particularly among Polish-speaking users.

Despite its Polish origins, the company has been registered in Estonia since September 2019, according to InfoRegister data, well before the EU’s MiCA regulation fully took effect in late 2024.

Source: InfoRegister

Zondacrypto has since become part of a broader regulatory debate in Poland, where officials have raised concerns about its potential links to Russian capital and political influence.

Related: Polish lawmakers back revised crypto bill after repeated vetoes

Some Polish policymakers have also criticized delays and inconsistencies in the country’s implementation of MiCA rules, even as the exchange operated under its Estonian registration.

On Tuesday, the FSA issued a MiCA license to LHV Pank, one of the country’s largest banks, making it the second financial institution in Estonia to receive approval under the EU’s crypto regulatory framework.

Magazine: eToro founder timed Bitcoin top perfectly due to belief in 4 year cycles

Bitcoin miner Canaan reported a net loss of $88.7 million for the first quarter of 2026, as falling Bitcoin (BTC) prices squeezed margins and triggered a significant inventory write-down.

The company posted total revenue of $62.7 million for the quarter ending March 31, a sharp decline from the $196.3 million it recorded in the previous quarter, according to a Tuesday press release.

Industrial mining equipment remained the company’s primary revenue driver at $39.6 million, though sales tumbled 75% from the prior quarter. Self-mining contributed $19.1 million, while the home mining segment brought in $2.7 million, a category that more than doubled year-on-year.

Source: Canaan

“Although average Bitcoin prices and hashprice declined significantly quarter-over-quarter, our bitcoin production experienced a comparatively smaller decrease, reflecting the resilience of our mining operations and continued hashrate deployment,” Jin (James) Cheng, chief financial officer of Canaan, said.

A $25 million inventory write-down weighed on the quarter’s gross loss of $23 million, while loss from operations reached $54.3 million.

Related: Bitcoin turns risk on as stocks hit new highs and miner profits rise: Is $85K BTC next?

Canaan’s self-mining hashrate surges 66%

Canaan expanded its self-mining footprint to 11 exahashes per second of installed computing power, a 66% jump from a year earlier. The company held 1,808 Bitcoin on its balance sheet as of March 31, valued at approximately $121 million.

In the quarter, Canaan also completed the acquisition of Cipher Mining’s 49% stake in three West Texas joint venture projects totaling roughly 4.4 EH/s in hashrate capacity and 120 megawatts of power. The deal, closed through a share issuance rather than cash, gives Canaan access to power rates below three cents per kilowatt-hour on the ERCOT grid.

Looking ahead, Canaan guided Q2 revenues between $35 million and $45 million, a further sequential decline.

Canaan shares closed down 3.54% at $0.4827 on Monday, shedding a further 7.71% in pre-market trading to $0.4455, according to Yahoo Finance.

Related: Hut 8 refinances Bitcoin-backed loan with $200M FalconX deal

Major miners report losses in Q1

Across the sector, major miners including Riot Platforms, Core Scientific, CleanSpark and TeraWulf all reported widening losses in Q1. MARA topped the group with a $1.3 billion net loss, roughly $1 billion of it tied to non-cash mark-to-market adjustments on its Bitcoin holdings.

As mining margins compress, a growing number of miners are pivoting toward AI and high-performance computing as an alternative revenue stream. On Monday, HIVE Digital Technologies announced plans to build a 320-megawatt AI data center campus near Toronto, capable of supporting more than 100,000 GPUs at full build-out.

Magazine: Guide to the top and emerging global crypto hubs — Mid-2026

Quick Overview

• Rocket Lab (RKLB) shares surged 5.1% on Monday, reaching an intraday peak of $138.38 with trading volume 36% higher than usual.
• First-quarter fiscal 2026 revenue reached $200.35M, marking a 63.4% increase year-over-year and surpassing analyst projections of $189.65M.
• Deutsche Bank increased its price target from $73 to $120; Craig Hallum upgraded the stock to Buy from Hold.
• Cantor Fitzgerald’s Andres Sheppard identified the forthcoming Neutron rocket launch as a “major catalyst” for the stock.
• Wall Street consensus stands at Moderate Buy, with 11 Buy ratings and 4 Hold ratings; the mean price target is $100.17.

Shares of Rocket Lab (RKLB) advanced 5.1% during Monday’s trading session, peaking at $138.38 intraday before closing at $131.16. The session saw 32.1 million shares change hands, representing a 36% increase over typical trading volumes.

Rocket Lab USA, Inc., RKLB

The upward momentum came after the company posted impressive first-quarter fiscal 2026 results on May 7. Revenue totaled $200.35 million, comfortably exceeding the Street’s $189.65 million expectation and representing a 63.4% jump compared to the prior-year period.

Earnings per share registered at ($0.07), matching consensus forecasts. The company continues to operate with a negative net margin of -26.87% and a return on equity of -11.72%.

Rocket Lab closed the quarter with a contract backlog valued at $2.2 billion and confirmed access to over $2 billion in available liquidity.

Rocket Lab characterized the quarter as delivering record-breaking financial results, highlighting multiple significant contract wins and the successful completion of strategic acquisitions.

Wall Street Boosts Price Forecasts

Deutsche Bank significantly raised its RKLB price target on May 12, moving it from $73 to $120 while reaffirming its Buy rating. The investment bank noted that demand across Rocket Lab’s portfolio of services continues to accelerate.

Clear Street similarly increased its target, adjusting from $88 to $98 and maintaining its Buy recommendation. The firm highlighted the company’s record-setting Q1 revenue that exceeded projections by 5%, driven by robust performance in both launch operations and space systems divisions.

On May 8, Craig Hallum shifted its stance from Hold to Buy, establishing a $98 price objective. Citigroup confirmed its Outperform rating on the same date.

Andres Sheppard of Cantor Fitzgerald, recognized as a 5-star analyst, maintained his Overweight rating with a $96 target following the quarterly results. He suggested that a “major catalyst” may still lie ahead for investors.

Neutron Rocket Represents Key Milestone

Sheppard highlighted Rocket Lab’s forthcoming Neutron rocket as a critical element for future expansion. Company leadership reaffirmed that the Neutron program is progressing according to schedule for its inaugural launch later in the year.

With 87 successful launches already completed, Rocket Lab holds a competitive advantage over emerging rivals still working to validate their technology, according to Sheppard’s analysis.

Cantor Fitzgerald projects Rocket Lab will execute 27 launches during fiscal 2026, spanning both its Electron and Haste rocket platforms.

The aerospace company maintains launch facilities in New Zealand and the United States. Its three-pronged rocket portfolio — Electron, Haste, and Neutron — addresses distinct niches within the commercial space sector.

Institutional ownership accounts for 71.78% of outstanding RKLB shares. Vanguard expanded its holdings by 13.4% in the fourth quarter, while Baillie Gifford boosted its position by 47.2%.

Company insiders have divested 333,449 shares valued at approximately $28.3 million during the past 90 days.

The Street’s overall stance is Moderate Buy, derived from 11 Buy recommendations, 4 Hold ratings, and zero Sell opinions issued over the last three months. The consensus price target of $100.17 suggests potential downside from current trading levels following the stock’s recent sharp advance.

RKLB currently trades well above its 50-day moving average of $78.81 and its 200-day moving average of $70.85, indicating the stock has experienced substantial momentum.

Bitcoin Depot, a leading US operator of Bitcoin ATMs, has filed for voluntary Chapter 11 bankruptcy protection in a move designed to wind down operations and pursue a sale of its assets. The Atlanta-based company disclosed the filing in a Monday announcement, citing mounting regulatory pressure and financial strain as primary drivers behind the decision.

CEO Alex Holmes stated that the firm had strengthened anti-fraud protections in recent years, including stricter identity verification and lower transaction limits. Nevertheless, he argued that escalating compliance demands and enforcement actions rendered the current business model unsustainable. The filing is one of the most significant blows to the crypto ATM sector to date and underscores the intensifying scrutiny facing cash-to-crypto services in the United States.

The company’s announcement confirms that its network of Bitcoin ATMs has already been taken offline as part of the court-supervised restructuring. Bitcoin Depot reported operating more than 9,000 kiosk locations globally as of August 2025 and holding a substantial share of the North American market. The restructuring process is intended to support an orderly wind-down while management pursues a sale of the company’s assets.

First-day bankruptcy proceedings are scheduled to take place on Tuesday at 7:00 p.m. UTC, according to information published on Kroll’s restructuring portal. Bitcoin Depot has appointed Vinson & Elkins as its legal adviser, with Portage Point Partners overseeing the restructuring process. Canadian entities are also included in the restructuring, with separate proceedings anticipated to begin in Canada; remaining non-US entities will shut down under local laws.

The crisis at Bitcoin Depot comes amid a wider regulatory push against crypto ATMs, which have been popular for both purchasing Bitcoin with cash and cashing out by selling crypto. Regulators in several US states and in Canada have intensified scrutiny over consumer protection, scams, and money laundering risks linked to these machines. The sector has faced lawsuits and proposals for broad bans in certain jurisdictions, reflecting growing concerns about fraud and enforcement liability for operators.

Key takeaways

• Bitcoin Depot filed voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas, signaling a court-supervised wind-down and sale process.
• The company has initiated an orderly wind-down of operations, with its network of Bitcoin ATMs taken offline as part of restructuring.
• Bitcoin Depot’s footprint included more than 9,000 kiosks globally as of August 2025, positioning it as a major player in the North American market.
• Canadian entities are encompassed in the proceedings, with separate Canadian filings expected; non-US entities will shut down under local law where applicable.
• Regulatory pressure on crypto ATM operators has intensified, with lawsuits and proposed restrictions in multiple jurisdictions, affecting business models and liability expectations.
• Market reaction was swift: premarket trading saw a sharp decline in Bitcoin Depot’s stock, which has fallen heavily since its public debut on Nasdaq in 2023 under the ticker BTM.

Chapter 11 filing and restructuring: what changed for Bitcoin Depot

The voluntary Chapter 11 filing places Bitcoin Depot under court supervision as it pursues an orderly exit from the business and a potential asset sale. The company retained Vinson & Elkins as its legal adviser and appointed Portage Point Partners to oversee the restructuring process. A first-day hearing was scheduled to be held remotely, providing creditors and other stakeholders an initial platform to review the debtor’s proposals and protections under bankruptcy law. This procedural framework is intended to preserve value for stakeholders while enabling management to negotiate terms with potential buyers or strategic partners.

Operational footprint and wind-down trajectory

Bitcoin Depot’s operational scale has been a defining feature of its exposure to regulatory risk. With more than 9,000 ATM locations worldwide at its peak, the firm ranked among the largest players in North America’s cash-to-crypto on-ramp. The restructuring plan contemplates a phased shutdown of non-essential operations and a sale of substantial assets, including network infrastructure, customer accounts, and partnered retail arrangements. Canadian affiliates are explicitly included in the filing, with separate proceedings anticipated under Canadian jurisdiction; remaining non-US entities will terminate in line with applicable local laws.

Regulatory pressure and policy context for crypto ATMs

The crypto ATM sector has encountered escalating oversight as regulators seek to curb scams, money-laundering risks, and consumer exposure to volatile digital assets. States and provinces have pursued enhanced licensing, stricter identity verification, stricter transaction monitoring, and greater operator liability for scam-related activity. In several jurisdictions, lawmakers have advanced or proposed prohibitions on crypto ATMs amid concerns about consumer protections and the potential for illicit use. The broader trend toward intensified regulatory standards has increased operating costs for ATM operators and compressed margins, complicating the viability of large nationwide networks.

According to Cointelegraph, industry observers view Bitcoin Depot’s bankruptcy as potentially indicative of broader headwinds for the sector in the near term. Analysts have noted that traditional revenue models—relying on significant transaction fees and relatively lighter regulatory scrutiny—are increasingly challenged as compliance requirements expand and enforcement actions sharpen. This dynamic elevates operator liability and necessitates more robust monitoring, reimbursement policies, and controls over cash handling and fraud remediation.

Implications for policy, market structure, and incumbents

The decision to pursue Chapter 11 underscores how rising regulatory expectations are reshaping the economics of cash-to-crypto services. For crypto exchanges, banks, and payment providers, the shift toward stricter consumer protections, KYC/AML compliance, and ongoing vigilance against scams translates into higher systemic costs and tighter risk management requirements. The unfolding proceedings highlight the need for clear licensing regimes, robust consumer protections, and enforceable requirements around transaction monitoring and dispute resolution.

From a policy perspective, the Bitcoin Depot case illustrates the challenges of balancing financial inclusion with consumer safety in a rapidly evolving asset class. As regulators coordinate domestically and with international peers, cross-border operators must navigate a patchwork of licensing standards, enforcement priorities, and liability frameworks—an environment that may influence future capital allocation, vendor selection, and partnership structures in the crypto ATM ecosystem. The broader policy context remains dynamic, with developments in areas such as MiCA and related regulatory reforms in other jurisdictions shaping how on- and off-ramps are regulated globally.

Investors and institutions will be monitoring court filings, asset sale processes, and potential settlements for indications of how liabilities, customer funds, and counterparties will be treated. While the Chapter 11 process is intended to maximize value for creditors, underlying regulatory and market risks persist for remaining operators and for the viability of large-scale ATM networks in the United States and beyond.

Closing perspective: The Bitcoin Depot filing signals a consequential inflection point for crypto on-ramps governed by cash-handling and consumer-protection rules. Stakeholders will be watching for the outcomes of the restructuring process, potential asset sales, and the direction of regulatory enforcement that could redefine the competitive landscape for crypto ATMs and similar cash-to-crypto services.

Bitget Wallet has integrated xStocks infrastructure, unlocking access to more than 130 tokenized stocks and ETFs for its 90 million users through its self-custodial wallet platform. The move broadens Bitget Wallet’s tokenized real-world assets portfolio to exceed 300 products, spanning equities, commodities, precious metals and index-linked assets, the company confirmed on Tuesday.

The expanded offering includes tokenized equities with a trading history that Bitget says surpassed $30 billion in transaction volume since launching in 2025. Access to these assets is restricted to jurisdictions where tokenized securities are permitted, with the United States, United Kingdom and other sanctioned regions remaining off-limits.

Bitget Wallet emphasizes zero trading fees and gasless execution, leveraging both request-for-quote (RFQ) and automated-market-maker (AAM) liquidity models. Users trade tokenized assets from the same interface used for cryptocurrency trading, swaps and custody while maintaining control of their private keys and funds.

Behind the scenes, Bitget Wallet is operated by Payward, the parent company of Kraken, which completed the acquisition of Backed Finance in late 2025 to bolster its tokenized equities capabilities.

Key takeaways

• Bitget Wallet expands tokenized assets to more than 300 products by integrating xStocks, opening access to 130+ tokenized stocks and ETFs for its vast user base.
• Tokenized equity products have processed over $30 billion in trading volume since the feature launched in 2025, with geographic restrictions limiting availability in the US, UK and other jurisdictions.
• Trading is offered through RFQ and AAM liquidity models, with zero trading fees and gasless settlement, streamlining participation in tokenized markets.
• Payward’s Kraken now operates Bitget Wallet, following the acquisition of Backed Finance, signaling ongoing consolidation in the tokenized-assets space.
• The broader market for tokenized equities is expanding rapidly, with major exchanges entering or expanding their offerings and data suggesting substantial growth potential in the coming years.

Bitget’s expansion underscores a shifting landscape for tokenized equities

The integration of xStocks into Bitget Wallet marks another milestone in a crowded race to bring real-world assets onto crypto rails. By connecting tokenized equity and other real-world assets directly into a wallet that already supports crypto trading and custody, Bitget aims to reduce the friction typically associated with accessing traditional financial instruments through digital-native interfaces. The stated model—zero fees and gasless execution—lowers the barrier to entry for new users and could accelerate activity in this niche, especially among traders seeking diversified exposure beyond crypto.

From a user experience standpoint, the arrangement promises a unified portal where traders can switch between crypto and tokenized assets without leaving the Bitget ecosystem. The ability to keep private keys in users’ hands while tapping into the liquidity of real-world instruments highlights a core attraction of tokenized assets: custody remains with the user, even as access is broadened via a centralized platform.

Industry observers are also watching how the governance and liquidity frameworks underlying tokenized stocks evolve. Bitget’s use of both RFQ and AAM liquidity models mirrors a broader industry push to balance price discovery with efficient execution, particularly for assets that may have less liquidity than their fiat-backed counterparts. In practice, RFQ can offer price transparency through dealer quotes, while automated market makers provide continuous liquidity at the potential cost of wider spreads during periods of volatility.

Competitive dynamics and the market trajectory for tokenized equities

Bitget’s announcement arrives amid a flurry of activity as major crypto platforms push further into tokenized stocks and stock-linked derivatives. In March, Coinbase launched stock perpetual futures for international users, delivering leveraged, 24/7 exposure to U.S. equities through its derivatives framework. Kraken has expanded its xStocks business with bundles that combine crypto and tokenized stock portfolios, alongside tokenized equity perpetual futures for non-U.S. users. Earlier this year, Binance signaled a renewed interest in tokenized equities after stepping back from its stock-token business in 2021 following regulatory scrutiny in Europe.

Market data from RWA.xyz paints a picture of a still-nascent but accelerating market. The tokenized equities sector has grown to roughly $1.5 billion in represented assets, with prominent tokens tied to companies such as Nvidia, Tesla, Alphabet, and others forming a core part of the landscape. Within this space, Ondo remains the largest tokenized stocks platform by asset value at about $883 million, followed by Bitget’s xStocks at roughly $391.5 million. The dominant assets tracked by RWA.xyz include tokenized versions of company shares and index-linked products such as those tied to the S&P 500, with Strategy and well-known names like Tesla and Nvidia among the frequently cited holdings.

These dynamics illustrate a broader shift as traditional financial infrastructure increasingly overlaps with crypto-native tooling. The presence of major players in tokenized equities signals growing investor appetite for regulated exposure to real-world assets via blockchain rails, while regulatory environments continue to shape where and how these products can be offered. For participants, the takeaway is clear: the bar for access to tokenized equities is gradually lowering, but regulatory clearance and platform risk remain the central considerations for what comes next.

Looking ahead, investors and builders should watch how custody approaches evolve as more platforms integrate tokenized equities into unified wallets, how liquidity models adapt to varying levels of on-chain activity, and how regulators respond to a market that blends traditional securities with decentralized technologies. The coming quarters will reveal whether the current expansion translates into sustained user adoption and meaningful liquidity across a broader spectrum of real-world assets.

As competition intensifies, the key questions for readers are what regulatory clarifications will emerge, how platforms will balance access with compliance, and which tokenized-asset offerings will reach scale first. The trajectory suggests tokenized equities will remain a developing frontier—one that could reshape how both institutions and individual traders approach traditional markets through a crypto-enabled lens.