Tokenized gold has seen a surge in trading this year as physical bullion reached record levels, but most of the “on-chain” gold supply still isn’t being actively used inside DeFi. A new report by RedStone points to a clear bottleneck: only a small portion of tokenized gold is showing up as collateral in major lending protocols such as Aave v3 and Morpho.

RedStone reports that tokenized gold spot trading volume hit $90.7 billion in the first quarter, during a period when gold futures rallied to above $5,600 per troy ounce. Yet only about $63 million worth of Tether Gold (XAUT) and PAX Gold (PAXG) is currently posted as collateral on Aave v3 and Morpho—roughly 1.5% of the combined $4.2 billion market capitalization of those tokens.

Key takeaways

• Tokenized gold trading is already large, with $90.7 billion in spot volume in Q1, but on-chain DeFi usage remains limited.
• Only about $63 million of XAUT and PAXG is deployed as collateral on Aave v3 and Morpho—around 1.5% of the tokens’ combined value.
• RedStone highlights resilience under stress: Aave processed its largest cluster of XAUT liquidations without disruption on March 23.
• Gold’s drawdown—futures down more than 26% since January—has reduced demand for non-yielding assets, even as tokenized gold remains actively traded.
• The main remaining challenge for tokenized gold is not performance in DeFi, but scaling collateral adoption across protocols.

Trading is surging, but DeFi collateral is lagging

The contrast between trading activity and collateral deployment is at the center of RedStone’s assessment. Despite strong market interest in tokenized bullion, the share actually put to work in lending markets is small.

According to the report, $63 million of XAUT and PAXG combined is being used as collateral on Aave v3 and Morpho, while the tokens collectively represent $4.2 billion in market capitalization. That means a large majority of tokenized gold is moving in spot markets without translating into deeper composability—at least within the two lending venues RedStone analyzed.

RedStone frames this as an adoption gap rather than a liquidity or reliability issue. In other words, the question is less “can tokenized gold operate in DeFi?” and more “why isn’t more of it being used as DeFi collateral?”

March’s liquidation test showed it can hold up

One reason tokenized gold continues to attract attention is that it has already faced a real stress scenario in DeFi. RedStone notes that on March 23, Aave handled its largest cluster of XAUT liquidations without disruption during a sharp downturn in gold.

The liquidation wave followed a painful move in the underlying commodity. RedStone ties the event to a period where gold fell 10% over the previous week—described by JPMorgan precious metals strategist Greg Shearer as an “extremely brutal flush.”

Earlier that week, gold’s broader sell-off reflected macro pressure: expectations for higher US interest rates reduced the appeal of non-yielding assets like precious metals. Cointelegraph previously reported that gold’s digital rally mirrored rising stress around the US dollar and interest-rate expectations, underscoring how quickly the commodity complex can shift.

From an investor or DeFi participant’s perspective, this matters because collateral reliability is foundational. If tokenized bullion fails to function during volatility, protocols would face operational risk and potentially forced deleveraging. RedStone’s takeaway is that, at least in that test, the system held.

Gold’s macro headwinds haven’t vanished

Even with a strong start to the year, gold has continued to face rate-driven headwinds. RedStone notes that gold futures have declined by more than 26% since peaking in January.

The decline aligns with the broader logic that higher expected US rates can make it harder for non-yielding assets to compete. That dynamic helps explain why the commodity market can generate both volatility and skepticism—even as tokenized versions of the asset continue to draw trading interest.

For tokenized gold, the implication is straightforward: DeFi collateral won’t exist in a vacuum. When gold moves aggressively, the tokenized form must be liquid enough and operationally stable. RedStone’s March example is a reminder that performance during stress may be improving, but it doesn’t guarantee automatic growth in collateral usage.

Why collateral adoption remains the bottleneck

RedStone’s report emphasizes that tokenized gold’s next hurdle is broader DeFi adoption. Proven resilience helps, but scaling requires more than technical compatibility. It also depends on incentives, protocol support, and user demand for borrowing and leverage against tokenized RWA collateral.

The tokenized real-world assets (RWA) market has been expanding beyond gold. RedStone points to a growing ecosystem that includes areas such as private credit and tokenized US Treasurys paired with equities. Token Terminal previously reported that the sector topped $43 billion in value.

At the same time, centralized crypto exchanges are rapidly building on-ramps for tokenized assets as they attempt to bridge traditional finance and digital markets. CoinGecko data (as reported by Cointelegraph) described an emerging “crypto TradFi” market reaching $6.6 billion as of June, suggesting that distribution and access for tokenized products are improving.

That backdrop raises a key question that investors may want to track: if tokenized assets are easier to access through centralized channels, why hasn’t that translated into proportionally higher DeFi collateral usage—at least in the specific tokens and protocols RedStone cited? The report doesn’t offer a single cause, but the data clearly shows the gap.

Going forward, the most important thing for readers to watch is whether tokenized gold’s demonstrated ability to function under volatility leads to meaningful increases in collateral deployment across DeFi lending platforms—especially as the sector continues to grow and as commodity-driven volatility returns.

Leopold Aschenbrenner, the founder of hedge fund Situational Awareness, has seen his leveraged positions liquidated following a swift downturn in AI stocks.

Aschenbrenner, a former member of Sam Bankman-Fried’s FTX Future Fund team, launched his fund in 2024 and ran it up 1,000% by May this year.

However, CNBC reported Thursday that Situational Awareness had suffered “heavy losses,” needed cash for margin calls, and was consulting with investment bankers for the possibility of an orderly wind-down.

By midday, the Wall Street Journal reported that Ken Griffin’s Citadel had bought “the bulk of its stock portfolio.”

The fund was allegedly up 439% net of fees from January 1, 2026 through June 30 per a July 24 investor letter the FT cited. Then July happened.

Aschenbrenner had borrowed money to upsize his AI bets, including Sandisk, Nebius Group, and SharonAI Holdings that have each lost at least 30% during the month of July.

Leverage that multiplies gains on the way up does the same to losses on the way down. Holding a 3x leveraged portfolio in just those three stocks this month would have wiped out to $0.

Although Aschenbrenner gained notoriety for his outperforming AI bets prior to July, before he borrowed money for stock trading, he sat on the five-person team running the FTX Future Fund. 

It was an effective altruism grant-making vehicle. Bankman-Fried funded it largely himself, partially using money that prosecutors proved he misappropriated from FTX customers.

Aschenbrenner joined at the vehicle’s launch in February 2022 but resigned on November 10 that year, one day before FTX filed for bankruptcy.

Another effective altruist needs more money

Aschenbrenner’s FTX Future Fund collapsed alongside FTX and Alameda Research after prosecutors exposed Bankman-Fried’s fraud.

“We were a tiny team, and then from one day to the next, it was all gone and associated with a giant fraud,” Aschenbrenner told the Dwarkesh Podcast.

After ending work with FTX’s effective altruism in 2022, Aschenbrenner went to work for OpenAI’s Superalignment team. 

However, by April 2024, OpenAI had fired him over a disputed data leak. He turned the ousting into a viral manifesto, Situational Awareness. 

He launched a fund of the same name with a few hundred million dollars.

U.S. Treasury Secretary Scott Bessent has urged senators to vote immediately on the CLARITY Act, increasing pressure on lawmakers to test support for the crypto market structure bill before the August recess.

Bessent demands an immediate CLARITY Act vote

Bessent called on Senate leaders to bring the CLARITY Act to a vote before lawmakers leave Washington next week. In a post on X, he accused Democrats of resisting the legislation because they fear opposition from Sen. Elizabeth Warren and what he described as her “anti-crypto army.”

The Treasury secretary said Senate Majority Leader John Thune would test that theory in the coming days by forcing lawmakers to state their positions. He framed the bill as a choice between supporting US leadership in digital assets and allowing other countries to move ahead with clearer regulations.

“Will Senate Democrats be on the side of American Exceptionalism, or will they opt to cede American leadership of a global industry for fear of the bespectacled squirrel’s Left flank?”

His intervention comes as the Senate faces a narrowing legislative calendar. Thune previously said the chamber might begin the floor process before the recess but acknowledged that there may not be enough time or votes to pass the legislation during the current session. As such, missing the pre-recess window could reduce the bill’s chances of becoming law in 2026.

Ethics and BRCA disputes threaten bipartisan support

Two provisions remain central to the negotiations: restrictions involving elected officials’ crypto interests and the Blockchain Regulatory Certainty Act, or BRCA.

Some Democrats have objected to language that gives the Department of Justice sole authority to enforce the ethics provisions. They want state attorneys general and other prosecutors to have enforcement powers rather than leaving oversight entirely to the federal government.

Republican Sen. Thom Tillis is expected to send a bipartisan ethics proposal to the White House. Approval from the Trump administration could remove one obstacle and help Senate leaders attract the Democratic votes needed to advance the bill.

Republicans hold 53 Senate seats but would likely need support from at least seven Democrats to clear the chamber’s 60-vote threshold. The House passed its version of the CLARITY Act in July 2025 by a 294–134 vote, including support from 78 Democrats.

Bessent defends protections for crypto developers

Bessent also rejected claims that the BRCA language would weaken authorities’ ability to pursue money laundering and other financial crimes. The provision seeks to clarify when developers of non-custodial blockchain software must register as money transmitters.

“The Blockchain Regulatory Certainty Act — which Washington lobbyists have spun up as a boogeyman for certain groups of prosecutors and law enforcement — does nothing other than codify longstanding Treasury Department policy that’s remained consistent across Administrations,” Bessent wrote.

He argued that developers who do not take custody of customer assets have not traditionally faced registration requirements under the Bank Secrecy Act. Prosecutors remain concerned that broadly written exemptions could limit their ability to bring cases against software providers connected to illicit transactions.

Law enforcement support has nevertheless increased after revisions to the bill. The National Fraternal Order of Police reversed its earlier opposition, saying its concerns had been addressed while investigators retained the tools needed to pursue crypto crime. The Major Cities Chiefs Association has also backed the revised legislation.

Prediction-market odds fall as the recess approaches

Traders remain skeptical that the CLARITY Act will become law this year. Polymarket priced the probability at about 30% on July 30, with roughly $3 million wagered on the outcome. The odds had reached 82% in February before falling as negotiations stalled and the Senate calendar tightened. Polymarket data also showed traders narrowly favoring an eventual Senate vote total above 50.

Bitcoin, meanwhile, traded near $64,767 after moving between $63,252 and $65,040 during the day. The muted response indicates that traders are not yet treating Bessent’s demand as evidence that passage is secured.

For US investors and crypto businesses, the stakes extend beyond the immediate vote. The legislation is intended to divide oversight responsibilities between the SEC and CFTC while setting federal requirements for digital-asset intermediaries. Failure to reach an agreement would leave companies operating under the existing mix of agency actions, court decisions and state rules.

The next test is whether the White House accepts the negotiated ethics package and whether Thune schedules a procedural vote before the recess. Without enough Democratic support, Bessent’s demand may force senators to record their positions without moving the bill closer to final passage.

Canadian crypto participation is rising quickly, according to fresh research from the Ontario Securities Commission (OSC). The regulator’s latest survey suggests that the share of Canadians who own cryptocurrencies has climbed to 25% in 2026, up from 10% in 2023—an expansion that also coincides with broader awareness of crypto assets.

The OSC released the findings Tuesday, based on a poll of 2,360 Canadians aged 18 and over conducted between December 2025 and January 2026. The study found that 59% of respondents said they are aware of crypto assets, while 25% reported that they currently hold cryptocurrencies.

Key takeaways

• The OSC survey reports crypto ownership has reached 25% in 2026, compared with 10% in 2023.
• Awareness increased alongside ownership, with 59% of respondents indicating they know about crypto assets.
• About half of crypto owners said they check whether a platform is registered before using it.
• Despite growing caution, the OSC found widespread confusion about regulation, insurance protections, and transaction capabilities.

Ownership and awareness move upward

The OSC’s survey points to a clear jump in both familiarity and direct engagement with crypto. In 2026, a majority of respondents—59%—reported awareness of crypto assets, while one-quarter said they hold cryptocurrencies.

That shift matters for regulators because it implies crypto is moving from a niche activity toward mainstream consumer behavior. As more Canadians participate, investor protection issues typically become more urgent, particularly around how users choose platforms, understand risk, and interpret what protections (if any) apply when assets are held or transacted through a service.

OSC executive vice president of strategic regulation Naizam Kanji said the regulator expects “emerging trends and behaviors” to help it anticipate opportunities and risks, with the goal of supporting investor protection while fostering fair and efficient markets.

Checking registrations—alongside continuing misunderstandings

One of the more actionable details in the OSC findings is how some users evaluate platforms. The survey indicates that about 50% of crypto owners reported checking whether a platform is registered prior to using it.

However, the report also suggests that heightened awareness does not necessarily translate into a correct understanding of the rules that govern crypto activity in Canada. The OSC said many respondents still had “some misunderstanding” around key issues—namely regulation, insurance protections, and transaction capabilities.

For investors, this mix of behavior is significant. Register checks can be a useful step, but misunderstanding the practical meaning of registration—or assuming protections exist where they do not—can expose users to avoidable losses. The OSC’s results imply that more effective education and clearer disclosures may be needed, even as adoption rises.

How Ottawa’s crypto proposals fit the trend

The OSC’s survey lands amid ongoing policy debate in Canada about the appropriate ways to regulate different crypto-related activities. According to the report, lawmakers in Ottawa have been considering measures tailored to how cryptocurrencies are used in practice.

Earlier this year, the federal government advanced a bill that could prohibit political donations made using crypto. The government also proposed banning crypto ATMs, citing concerns about scams and money laundering. Taken together, these proposals highlight a broad regulatory theme: as crypto use grows, authorities are focusing not just on trading and custody, but also on high-risk channels that can enable fraud.

While the OSC survey focuses on awareness, ownership, and user understanding, Ottawa’s legislative direction underscores a parallel concern among policymakers—reducing harm where crypto intersects with consumers and enforcement challenges.

What to watch next for Canadian investors

The OSC’s data suggests that Canada’s crypto base is expanding while gaps in consumer understanding remain. The most important question for users and market participants is whether regulators will translate these survey insights into clearer requirements, better consumer education, and more targeted enforcement—especially in areas where misunderstanding could lead to financial harm.

As the next rounds of research and policy developments emerge, Canadians should pay close attention to how platform registration is communicated in practice, what protections users can realistically expect, and which services regulators move to restrict or supervise more tightly.

As Hyperliquid and Cardano face market uncertainty, BlockDAG is expanding its ecosystem with upcoming claims and staking functionality for users.

The Hyperliquid price hovers near a critical make-or-break zone as trading interest cools down. Meanwhile, the Cardano price is facing pressure after reaching very low RSI levels, with traders watching for signs of a possible recovery.

Standing far above these uncertain charts, BlockDAG (BDAG) is introducing a new stage of ecosystem development with upcoming claims and staking features. Claims for Batches 1–6 and staking are scheduled to go live within hours, adding new utility for the growing network.

Alongside these updates, BDAG is available at a limited-time price of $0.00000019, while Live Swap remains active at 22% below the CoinMarketCap price. With continued progress across the Casino & Sportsbook, BlockDAG Exchange, Super App, and upcoming Tier 1 exchange listings, BlockDAG is building momentum around broader ecosystem growth and long-term blockchain adoption.

Hyperliquid price faces downward pressure

The Hyperliquid price sits near $60 as buying interest slows down. Right now, the token stays below its 50-day average price of $62.70, showing that momentum has cooled. 

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Big investors seem to be stepping back, with specialized crypto funds pulling out nearly $700,000 in a single day. On top of that, a major token holder recently moved over 395,000 HYPE to an exchange, which often signals a plan to sell.

While trading volume jumped slightly, most traders remain divided on where the market goes next. If the price falls below its $60.41 support level, it could easily drop further toward $54.19, keeping near-term risks quite high for buyers.

Cardano price holds firm above historic lows

The Cardano price is holding around $0.16 after dipping almost 2% recently. The coin sits in a support range between $0.14 and $0.17, which has helped stop deeper drops in the past. 

Indicators show the market is heavily oversold, meaning selling has been intense for a long time. Some chart readers see a potential bottom pattern forming, but nothing is confirmed yet. For a real comeback, the token needs to climb past the $0.23 resistance level. 

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However, actual buying demand remains weak across weekly charts. If support at $0.14 fails to hold, the price risks sliding down toward $0.10, leaving the token in a shaky position for now.

BlockDAG prepares staking and claim launch

Timing can make the biggest difference when entering a high-growth opportunity, and BlockDAG is giving participants a chance to move before the crowd. BlockDAG is creating renewed attention. 

BlockDAG is currently available at $0.00000019, while the Live Swap remains active at 22% below the CoinMarketCap price, giving market participants a limited timeframe to explore the latest opportunity.

The next few hours mark the launch of claims for Batches 1–6 and staking, bringing new functionality to the network. As activity builds around these updates, BlockDAG continues advancing its wider ecosystem with the Casino & Sportsbook, BlockDAG Exchange, Super App, and upcoming Tier 1 exchange listings. These developments are placing increased focus on BDAG as the project moves toward its next stage of growth.

Community growth tells the story: more than 312,000 holders, increasing by over 1,000 each day, alongside 4 million+ users on the X1 mining app and 20,000 physical miners already shipping globally. 

From a technology perspective, the latest RPC upgrade processed 100,000 transactions within 24 hours, highlighting the network’s scalability. Combined with early-entry projections suggesting the potential for up to 5,000x ROI, it’s clear why many investors are viewing BDAG as one of the top crypto opportunities today.

For more information, visit the official website, presale, Telegram, and Discord.

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Some of the world’s biggest banks have completed real cross-border payments using tokenized money in a test led by the Bank for International Settlements (BIS), another sign that tokenization is moving into the plumbing of global finance.

Project Agorá, which brings together five central banks and 28 commercial lenders including JPMorgan, Citi, UBS, Deutsche Bank and Standard Chartered, processed roughly $1 million (CHF 800,000) in real-value transactions across six currencies — the U.S. dollar, euro, British pound, Japanese yen, Swiss franc and South Korean won.

The pilot used tokenized central bank reserves and commercial bank deposits to settle corporate, interbank payments perand foreign exchange settlements. The payments settled in an average of about 80 seconds, even though the prototype was not directly integrated with banks’ existing payment infrastructure, the BIS report said.

The project fits into a broader shift as stablecoins and tokenized assets gain traction across global finance. Asset managers have begun issuing tokenized money market and private credit funds, while stablecoins are increasingly being used for cross-border payments and corporate treasury operations.

A new model for cross-border payments

Project Agorá explores whether the same technology can modernize the infrastructure banks use to move money internationally.