Crypto World
Robinhood (HOOD) starts testing its own blockchain as crypto push deepens
HONG KONG — Robinhood launched its public testnet for its own Ethereum layer-2 blockchain on Wednesday with plans for broader launch later this year as the brokerage app aims to move more trading activity onchain.
The new network, called Robinhood Chain, is built on Arbitrum and is designed to support tokenized real-world assets, including equities, exchange-traded funds (ETFs) and other assets. Developers will be able to publicly build on the network for the first time after six months of private testing, ahead of a future mainnet launch, the company announced at CoinDesk’s Consensus Hong Kong conference.
With the chain, Robinhood aims to allow users to trade 24/7 and self-custody their assets in Robinhood’s own crypto wallet. Users will also be able to bridge across different chains and to decentralized finance (DeFi) applications on Ethereum , the company said in a press release.
The timing comes as Ethereum’s core roadmap shifts more attention back to the base layer. Certain upgrades have already lowered transaction costs, and further improvements are expected to continue easing congestion, a development that weakens the case for layer-2s as a pure scaling necessity.
Robinhood’s approach suggests it is already operating under that assumption.
“I think Vitalik [Buterin, the co-founder of Ethereum] was always pretty clear on this, that L2s were not just here to scale Ethereum,” said Johann Kerbrat, Robinhood’s senior vice president and general manager of crypto, in an interview with CoinDesk.
“For us, it was never really about scaling Ethereum or doing faster transactions,” Kerbrat added.
The move builds on Robinhood’s earlier steps into tokenization. Last year, the company rolled out token versions of U.S. stocks and ETFs for European users with dividend payments and extended market hours.
Those assets — almost 2,000 stocks and ETFs, according to data by Entropy Advisors on Dune Analytics — were initially issued on Arbitrum. However, the $15 million in total value of the equity tokens Robinhood minted is lagging behind leading issuers xStocks and Ondo Global Markets.
When rollups — ways of processing transactions on layer-2 networks to ease congestion on the base network — first gained traction, they were widely framed as Ethereum’s answer to high fees and limited throughput. As Ethereum’s layer-1 capacity improves, that narrative is giving way to a different one: layer-2s as customizable, application-specific environments that can embed features difficult to implement on Ethereum itself.
“What we wanted was the security of Ethereum, the liquidity that is available on EVM chains and the Ethereum ecosystem,” Kerbrat said. “But we were also wanting to have a way to customize the chain and to make it really optimized for traditional assets being tokenized.”
Rather than competing with other high-speed trading-focused rollups, Robinhood Chain is being designed around tokenized equities and other regulated financial products, where compliance requirements vary by jurisdiction.
“The complexity to recreate the entire financial system, and on top of that to bring more things on it, makes it that I think chains are going to specialize,” Kerbrat said. “You’ll see chains that are more specialized for payments, and you’ll see chains like ours that are going to be more specialized around tokenized equity.”
Buterin has recently argued that some rollups may need to accept different decentralization trade-offs, particularly when compliance or real-world assets are involved, a view that has stirred debate across the ecosystem.
For Robinhood, Kerbrat said, that shift does not materially change its strategy.
“It doesn’t really change anything for us,” he said. “We’ve always been building with the idea that there are different compliance requirements based on the jurisdiction, and all these things can be embedded into the chain.”
Robinhood first announced plans for its own blockchain in June 2025, positioning the project as part of a broader push into tokenization and onchain finance. Since then, development has largely taken place out of public view.
With the testnet now live, developers can access network entry points, documentation, and standard Ethereum development tools. Ahead of mainnet, Robinhood plans to expand testnet functionality to include test-only assets, including stock tokens, along with deeper integrations with its wallet and other onchain financial tooling.
Read more: Robinhood explains building an Ethereum layer-2: ‘We wanted the security from Ethereum’
Editor’s note: On Safer Internet Day, cybersecurity firm Kaspersky addresses a growing concern for families navigating the rapid adoption of AI by Generation Alpha. As children increasingly use AI-powered tools for learning, entertainment, and everyday questions, the company outlines practical guidance for parents on how to frame AI as a helpful tool without overlooking its risks. The focus is on education, supervision, and the responsible use of digital assistants, rather than restriction alone. The guidance reflects broader questions around digital literacy, data privacy, and online safety that are becoming central as AI tools enter daily life at an early age.
Key points
- Parents are encouraged to explain what AI tools are and are not, emphasizing their limitations and potential inaccuracies.
- Children should be taught to verify AI-generated information and avoid using it for sensitive topics without adult input.
- Built-in safety settings and content filters on devices and platforms are highlighted as a first layer of protection.
- Verifying the authenticity of AI-powered apps and limiting permissions is presented as essential to reducing privacy risks.
- Ongoing dialogue between parents and children is positioned as key to safe and informed AI use.
Why this matters
As AI tools become embedded in everyday digital experiences, early exposure is shaping how the next generation learns, searches for information, and interacts online. For parents, this raises new challenges around trust, privacy, and digital wellbeing. For the broader tech ecosystem, it underscores the importance of responsible design, clear safeguards, and digital literacy as AI adoption expands beyond adults. Guidance like this reflects how cybersecurity and education are becoming tightly linked as AI use moves into younger age groups.
What to watch next
- How AI platforms continue to develop and communicate child safety and parental control features.
- Adoption of digital literacy practices by families and schools as AI use grows.
- Ongoing discussion around data privacy and age-appropriate AI access.
Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.
Born between 2010 and 2025, Gen Alpha aren’t just growing up with technology – they’re actively living it. These digital natives are already wielding smartphones, tablets, and AI-powered tools with the confidence of seasoned users, navigating everything from gaming and social media to online learning platforms with remarkable ease. But the question that concerns parents and security experts is whether we are giving our kids too powerful technology, too soon. On Safer Internet Day, Kaspersky security experts are sharing practical tips to help parents turn AI from a potential threat into a trusted ally for the younger generation.
The first line of defence is building AI awareness
Children already discovered that ChatGPT, DeepSeek and other neural networks can answer questions faster than you can find the right answer in Google, and Alexa can play music without pressing a single button.
So, the only solution is to become children’s AI support. Begin by explaining that these digital assistants aren’t friends, pets, or even real people. They’re sophisticated tools that can be helpful, but also potentially misleading, biased, or simply wrong. Then teach them to cross-check information with multiple sources, just like they’d verify facts in a school project.
When discussing AI with children, emphasize that they should never fully trust AI answers, especially for sensitive topics like health, mental wellbeing, or safety concerns. Always encourage them to verify information and never share personal details or documents with AI systems.
Enabling safely filters
Most AI platforms and smart devices come with built-in safety features that are often overlooked or misunderstood. Spend some time to check the privacy settings and content filters and, if possible, tailor them to match your family’s values and your child’s maturity level. This is a basic protection against inappropriate content, privacy breaches, and potentially harmful interactions.
However, not all services and platforms provide an opportunity to set up content filters and fully control children’s online activity. To create safer digital environment for your children consider using parental control tools like Kaspersky Safe Kids. It allows parents to not only to hide inappropriate content and prevent specific apps and websites from being opened, but also helps balance children’s time spent online with screen time management.
Checking the AI-powered app’s authenticity
In a world where AI apps are popping up faster than you can say “chatbot,” verifying app authenticity is essential. Only download apps from official stores and inform your children about the importance of not installing anything from unfamiliar sources. Look up the company behind the app and check whether they have a website and legitimate business presence. Teach your kids to limit their apps’ permissions and do not give access to data unless it’s necessary for the apps to work.
Staying involved and informed
A basic understanding of the range of problems your child is willing to entrust to AI is already significant. By asking simple questions like “What did you ask AI today? Did it give you the right answer?” you’ll be teaching your children to openly discuss with you the use of AI and problems they might face. When they mention using ChatGPT for homework, ask them to show you what they’ve learned. When they talk about their favourite voice assistant, ask about the topics they like to discuss and funny particularities they noted.
“When you actively participate in your child’s AI journey, you transform from a concerned parent into a trusted guide. They’ll seek your input because they know you’re interested in their digital experiences, not just trying to control them. But while allowing children some AI freedom, you must always remain vigilant about their online safety and healthy growth,” comments Andrey Sidenko, Cyber Literacy Projects Lead at Kaspersky.
About Kaspersky
Kaspersky is a global cybersecurity and digital privacy company founded in 1997. With over a billion devices protected to date from emerging cyberthreats and targeted attacks, Kaspersky’s deep threat intelligence and security expertise is constantly transforming into innovative solutions and services to protect individuals, businesses, critical infrastructure, and governments around the globe. The company’s comprehensive security portfolio includes leading digital life protection for personal devices, specialized security products and services for companies, as well as Cyber Immune solutions to fight sophisticated and evolving digital threats. We help millions of individuals and nearly 200,000 corporate clients protect what matters most to them. Learn more at www.kaspersky.com
Uniswap has won a patent infringement lawsuit filed by organizations connected to Bancor, marking a major legal victory for the decentralized exchange and the wider decentralized finance sector.
Summary
- Uniswap won a patent infringement lawsuit filed by Bancor-linked entities in a U.S. federal court.
- The case focused on the constant product market maker formula used in decentralized trading.
- The ruling supports open-source development and limits patent claims over core DeFi tools.
On Feb. 11, Uniswap founder Hayden Adams said on X that his legal team had informed him of the court’s decision in Uniswap’s favor. The case had challenged the technology that powers automated token trading on the platform.
Many people in the crypto world paid close attention to the lawsuit because it brought up a bigger issue. It questioned whether simple trading formulas used in DeFi can actually be protected by patents.
Lawsuit focused on AMM technology
The legal fight started in May 2025. Bprotocol Foundation and LocalCoin Ltd., both connected to Bancor, filed a lawsuit in a federal court in New York. They claimed that Uniswap Labs and the Uniswap Foundation used a trading method that was covered by a patent granted back in 2017.
The patent covered the constant product automated market maker model, commonly known for the formula x*y=k. This system is used to price tokens in liquidity pools and has become a foundation of many decentralized exchanges.
Bancor argued that Uniswap (UNI) had relied on this patented method since launching in 2018 without permission. The plaintiffs sought financial damages for several years of alleged unauthorized use.
Uniswap strongly rejected the claims from the start. The company said its code had always been open-source and publicly available. It also argued that the patent attempted to claim ownership over basic mathematical principles applied to blockchain systems.
Several industry groups supported Uniswap’s position. Organizations such as the DeFi Education Fund and the Solana Institute filed statements backing the exchange and warning against using patents to restrict open innovation.
Impact on DeFi and open-source development
According to people familiar with the case, the court found that the allegations did not meet the legal standard required for patent infringement, especially given the open nature of Uniswap’s software.
Legal experts say the ruling sends a strong message to the market. Core financial mechanisms that rely on simple formulas may be difficult to protect through patents when they are openly shared and widely adopted.
Many developers see this outcome as a strong moment for open finance. It sends a message that the basic tools behind DeFi cannot easily be restricted or put behind paywalls through patents.
Uniswap users and its partners can also breathe a little easier. The uncertainty surrounding the case had raised concerns about possible setbacks. If the court had ruled differently, it might have slowed down new features and partnerships across the wider ecosystem.
So far, there has been no word of an appeal. For now, the matter seems to be settled at the district court stage.
The tokenized commodities market has risen 53% in less than six weeks to over $6.1 billion, making it the fastest-growing vertical in the real-world asset tokenization market as more gold moves onchain.
The tokenized commodities market was valued at just over $4 billion at the start of the year, meaning around $2 billion has been added to the market’s value since Jan. 1, according to data from crypto analytics platform Token Terminal.
Data shows the tokenized commodities market is dominated by gold products.
Stablecoin issuer Tether’s gold-backed token, Tether Gold (XAUt), has been the biggest contributor to the rise, with its market cap increasing 51.6% in the past month to $3.6 billion, while the Paxos-listed PAX Gold (PAXG) has increased 33.2% to $2.3 billion over the same timeframe.
Tokenized commodities have now risen 360% year-on-year, with the increase since the start of 2026 outpacing growth in the tokenized stocks and tokenized funds markets at 42% and 3.6%, respectively.
It also puts the tokenized commodities market at just over one-third the size of the $17.2 billion tokenized funds market. It’s also much larger than tokenized stocks, which are valued at $538 million.
Tether expanded its tokenized commodities strategy on Thursday by acquiring a $150 million stake in precious metals platform Gold.com, in an effort to broaden access to tokenized gold.
Tether said its XAUt token would be integrated into Gold.com’s platform and that it is exploring options to allow customers to purchase physical gold with USDt (USDT) stablecoin.
Gold picks up the pace as Bitcoin stuck below $70,000
The rise in tokenized gold comes as gold’s spot price rallied more than 80% over the past year to set a new all-time high of $5,600 on Jan. 29.
A minor pullback saw gold retrace to the $4,700 mark earlier this month, but it has since risen back up to $5,050 at the time of writing.
Related: Do Super Bowl ads predict a bubble? Dot-coms, crypto and now AI
Meanwhile, Bitcoin (BTC) and the crypto market have been in a slump since Oct. 10, when a crypto market crash triggered $19 billion in liquidations.
Bitcoin fell 52.4% from its early October high of $126,080 to about $60,000 on Friday but has since rebounded to $69,050, CoinGecko data shows.
Bitcoin’s fall amid a rise in traditional safe-haven assets has led some industry commentators, like Strike CEO Jack Mallers, to speculate that Bitcoin is still treated like a software stock despite having hard money characteristics.
Crypto asset manager Grayscale similarly said Bitcoin’s long-standing narrative as “digital gold” has been put to the test, stating that its recent price action increasingly resembles that of a high-risk growth asset rather than a traditional safe-haven.
Magazine: Big questions: Should you sell your Bitcoin for nickels for a 43% profit?
Since August 2025, XRP holders have increasingly spent their coins, adding to the selling pressure that has flipped the asset’s on-chain profitability negative.
The past six months have been primarily depressing for XRP, the native cryptocurrency of the Ripple Network. Now, the asset appears to be flashing a capitulation signal as holders realize major losses amid panic selling.
Data from Glassnode shows that on-chain profitability for the digital asset has flipped negative, with the Spent Output Profit Ratio (SOPR) falling from 1.16 on July 25, 2025, to 0.96 currently. Analysts say the current setup mirrors that seen during the September 2021 to May 2022 period, when the SOPR for XRP fell into the <1 range. A prolonged consolidation followed the plunge, leading to stabilization.
XRP Holders Realize Huge Losses
Since August 2025, the price of XRP has been in a steady decline, recovering only briefly before resuming its descent. By late October, the price had dropped 27% from $3.5 in mid-July to $2.4. As the asset lost its value, long-term holders who had accumulated before November 2024 increased their spending by 580% from $38 million per day to $260 million per day.
The numbers remained steady into early November, highlighting a distribution into weakness, not strength. Analysts noted that the spending spree was unlike past profit-realization waves that aligned with rallies. There was a clear signal that experienced traders were exiting their positions, adding pressure to the price of XRP.
By mid-November, the share of XRP supply in profit had plummeted to 58.5%, the lowest since November 2024, when the asset was worth $0.53. Even though XRP traded around $2.15 at the time, four times higher than the November 2024 price, more than 41% of the coin’s supply was sitting in losses. It was an indication that the market was top-heavy, structurally fragile, and dominated by late buyers.
Capitulation Signal or Structural Failure?
As the bears would have it, the price of XRP fell below $2 in mid-November, and the 30-day estimated market average (30D-EMA) of daily realized losses surged to $75 million. Since the beginning of the year, investors have realized between $500 million and $1.2 billion in losses per week each time XRP has retested $2. $2 is now a major psychological zone for XRP holders.
At the time of writing, XRP was trading at $1.40, having lost its aggregate holder cost basis, which explains the panic selling. Such moves have raised questions about whether the XRP market is in a capitulation or experiencing a structural failure. Experts insist the former is the case because fundamentals are stronger now, unlike 2022, when regulatory clarity did not exist.
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Stripe has launched a new payment system designed for artificial intelligence agents, allowing them to pay for digital services automatically using cryptocurrency.
Summary
- Stripe launched x402 payments to enable AI agents to make automated USDC transactions on Base.
- The system supports fast, low-cost micropayments for APIs, data, and compute services.
- The move shows the growing convergence between AI, fintech, and blockchain infrastructure.
Stripe product manager Jeff Weinstein revealed the feature on Feb. 11 and it is currently in preview. The update adds support for Base, an Ethereum-based blockchain network, for the x402 payment protocol.
Through this system, AI agents can quickly and easily make small payments using USD Coin (USDC) stablecoins. Developers can charge agents for services like data access, processing power, and API calls using Stripe’s built-in tools, eliminating the need for manual billing or traditional subscriptions.
Built for machine-to-machine payments
Weinstein said current payment systems are designed mainly for humans and are not well-suited for automated software. AI agents, he noted, need fast, low-cost, and always-available payment rails that can work without human supervision.
Under the new system, businesses create a standard Stripe Payment Intent. Stripe assigns a one-of-a-kind wallet address to every transaction. When the AI agent sends funds to that address, the payment can be monitored in real time through the Stripe dashboard, via webhooks, or by using the API.
Once the transaction is confirmed, the funds are deposited into the merchant’s Stripe balance, just like any standard payment. Stripe’s current infrastructure also manages tax reporting, refunds, and compliance tools.
The system relies on x402, an open protocol that revives the old HTTP “402 Payment Required” status code. When an agent tries to access a paid service, it receives a payment request. After sending USDC on Base, access is automatically granted.
Because Base offers fast settlement and low fees, payments can be completed in a matter of seconds. This makes the setup suitable for frequent, low-value transactions, such as paying per request or per minute of usage.
Stripe has also released an open-source command-line tool called “purl,” along with sample code in Python and Node.js, to help developers test machine payments.
Expanding the agent economy
The launch reflects Stripe’s growing focus on what it calls the “agent economy,” where software programs operate independently and manage their own finances. These agents are expected to buy data, computing resources, and digital services without human approval.
The company said more protocols, currencies, and blockchain networks will be added in the future. For now, support is focused on USDC on Base, which provides stability and predictable pricing.
Industry observers see the move as another sign that AI, fintech, and crypto are becoming more closely connected. Instead of relying on monthly plans or prepaid credits, services can now be priced per action, per second, or per request.
TLDR:
- Circle Ventures invests in edgeX, the team behind EDGE Chain layer-3 blockchain infrastructure
- Native USDC and CCTP integration will enable regulated stablecoin settlement on EDGE Chain
- Migration from bridged USDC.e to native USDC planned for existing EDGE Chain ecosystem users
- CCTP enables secure crosschain USDC transfers without reliance on wrapped or bridged assets
Native USDC and Circle Cross-Chain Transfer Protocol (CCTP) are set to launch on EDGE Chain, bringing regulated stablecoin infrastructure to the layer-3 blockchain ecosystem.
Circle Ventures has invested in edgeX, the team developing EDGE Chain, supporting the integration of USDC and CCTP capabilities.
The upcoming launch will enable institutional-grade settlement and crosschain transfers for users of edgeX exchange and other EDGE Chain applications.
This development positions EDGE Chain as a high-performance environment for onchain financial applications.
Circle Investment Backs EDGE Chain Infrastructure
EDGE Chain operates as a layer-3 blockchain powering edgeX, a perpetual decentralized exchange focused on competitive trading performance.
The platform leverages Arbitrum’s layer-2 chain for security while settling on Ethereum’s base layer. Circle Ventures’ investment reflects confidence in EDGE Chain’s technical architecture and growth potential.
According to the announcement, the integration “brings trusted, regulated stablecoin settlement and secure crosschain infrastructure to the EDGE ecosystem, including edgeX exchange, unlocking new onchain financial use cases.” The investment demonstrates Circle’s belief in the platform as a scalable environment for USDC-based applications.
The integration will provide users access to USDC, the world’s largest regulated stablecoin. Native USDC serves as a fully reserved asset redeemable 1:1 for US dollars.
Eligible institutional users can access Circle Mint for direct on and off-ramp services. The stablecoin will function across trading, lending, and various onchain activities within the ecosystem.
CCTP enables the secure movement of USDC between the EDGE Chain and other supported blockchains. The protocol eliminates reliance on wrapped or bridged token versions.
Developers can select between Standard Transfer and Fast Transfer options based on application requirements. This infrastructure supports cross-chain onboarding, trading, margin operations, and lending applications.
Migration Path Set for Bridged USDC Users
EDGE Chain currently supports Bridged USDC, known as USDC.e, created by Alchemy. The EDGE Chain and edgeX teams plan a gradual migration of USDC.e liquidity to native USDC.
Bridged versions will maintain clear labeling as USDC.e across block explorers, application interfaces, and technical documentation.
The announcement outlined key capabilities, noting the integration enables “Native USDC for settlement and collateral” alongside “CCTP for seamless USDC movement across supported blockchains. Users will benefit from infrastructure with “no reliance on wrapped or bridged assets” for cross-chain transfers.
Circle has released testnet USDC at address 0x7433b41C6c5e1d58D4Da99483609520255ab661B for developer experimentation. Mainnet contract addresses will be announced closer to launch.
Developers can obtain free testnet tokens through Circle’s official faucet to test fund flows and integration workflows.
The existing Bridged USDC maintains its mainnet presence at address 0xd8e20462EDCe38434616Cc6A6a560BB76B582ED8. Both token versions will coexist during the transition period.
Ecosystem applications will coordinate migration timelines to minimize disruption for existing users and liquidity providers. Circle Internet Financial, LLC holds multiple regulatory licenses for money transmission services under NMLS number 1201441.
Bitcoin’s long-standing narrative as “digital gold” is under renewed scrutiny as its price action increasingly mirrors that of higher-risk growth assets rather than serving as a traditional safe-haven harbor. Grayscale’s latest Market Byte examines this shift, arguing that the asset’s role in portfolios may be evolving in ways that reflect broader participation from institutional buyers, ETF activity, and shifting macro risk sentiment. While the research maintains that Bitcoin remains a long-term store of value due to its fixed supply and independence from central banks, it cautions that near-term behavior has diverged from gold and other precious metals, opening room for a rethinking of how the market categorizes the digital asset.
In the Grayscale analysis, the first-time reader-facing takeaway is that Bitcoin’s short-term price movements have not tracked gold’s recent rallies. The report notes that bullion and silver have surged to records even as Bitcoin has swooned, suggesting a decoupling from traditional safe-haven dynamics. Instead, Bitcoin’s price action has shown strong correlations with software equities, particularly since the start of 2024. That sector has faced sustained selling pressure amid fears that advances in artificial intelligence could disrupt or render many software services obsolete, amplifying concerns about growth equities’ durability in a high-rate environment.
The charted narrative—one that Grayscale emphasizes with data and context—takes on added significance as the asset has logged a roughly 50% drawdown from its October peak that exceeded $126,000. The drawdown has unfolded in a string of waves, beginning with a historically large liquidation in October 2025, followed by renewed selling in late November and again in late January 2026. Grayscale highlights that persistent price discounts on major trading venues such as Coinbase reflect a broader selling impulse among U.S. participants, including “motivated” sellers who have contributed to the softer price dynamics in recent weeks. This backdrop is shaping a narrative in which Bitcoin’s path is increasingly tethered to the health of growth-oriented equities and the liquidity environment around ETFs and other traditional investment vehicles.
The Grayscale report frames these developments as part of Bitcoin’s ongoing evolution rather than a sudden policy failure of the asset’s core investment premise. Zach Pandl, the report’s author, notes that it would have been unrealistic to expect Bitcoin to supplant gold as a monetary asset in a short period of time. Gold’s long history as a monetary anchor—“used as money for thousands of years and serving as the backbone of the international monetary system until the early 1970s”—shadows Bitcoin’s current trajectory, but the author suggests that the digital asset could still contribute to monetary functions over time as the global economy digitizes further through AI, autonomous agents, and tokenized financial markets.
In broader market terms, the evolution described by Grayscale aligns with a trend toward deeper integration of digital assets into established financial markets. Institutional participation, ETF activity, and shifting risk sentiment are cited as key drivers behind Bitcoin’s greater sensitivity to equities and growth assets. The near-term outlook, therefore, hinges on the possibility of fresh capital reentering the market—whether through renewed inflows into Bitcoin-related exchange-traded products or renewed retail interest. Market watchers note that while AI-focused narratives have dominated sentiment in the meantime, a continuation of liquidity inflows could catalyze a partial rebound for crypto assets as macro conditions stabilize.
Despite the near-term softness, the report underscores a longer-term perspective. While Bitcoin’s monetary status remains a work in progress, its potential to assume a more prominent role in digital-first economies could intensify as tokenization of assets and on-chain finance expand. The analysis highlights that the ongoing transition toward tokenized markets, together with the growth of on-chain infrastructure for tokenized assets, might help Bitcoin solidify a more enduring store-of-value or medium-of-exchange function over time—even if such a shift does not materialize immediately.
From a practical standpoint, the near-term recovery hinges on capital inflows. Grayscale notes that ETF activity could serve as a meaningful catalyst should fresh inflows reappear, while retail participation—currently concentrated in AI and growth-driven equities—would need to broaden to crypto assets for a more robust upside. The research also points to ongoing market structure dynamics, including price discovery processes on major exchanges and the degree to which price gaps on venues like Coinbase reflect broader demand gaps in the crypto space. Taken together, these factors suggest Bitcoin’s path remains highly sensitive to macro risk appetite, regulatory signals, and the ebb and flow of liquidity across traditional and digital markets.
Key takeaways
- Bitcoin’s price action has shown stronger ties to growth equities, particularly software stocks, since early 2024, rather than mirroring traditional safe-haven assets like gold.
- The asset has experienced a ~50% drawdown from its October peak above $126,000, with declines unfolding in multiple waves including a major liquidation event in October 2025.
- Grayscale attributes some of the recent volatility to “motivated US sellers” and persistent price discounts on Coinbase, signaling liquidity and demand dynamics within the U.S. market.
- Institutional participation, ETF activity, and shifting macro risk sentiment are cited as factors intensifying Bitcoin’s sensitivity to the broader market environment.
- Although Bitcoin has not displaced gold as a monetary asset, its role could evolve as digital markets grow and tokenized financial systems mature.
Tickers mentioned: $BTC
Price impact: Negative. Bitcoin retraced about half of its October highs, underscoring a softer near-term price backdrop tied to risk-on selling and ETF flow dynamics.
Market context: The landscape for digital assets in 2026 is increasingly shaped by ETF inflows, institutional adoption, and a broader appetite for growth-centric equities, which can both buoy and dampen crypto markets depending on macro liquidity and risk sentiment.
Why it matters
The evolving relationship between Bitcoin and traditional financial assets matters for investors rethinking diversification in a digitizing economy. The Grayscale analysis indicates that Bitcoin remains a long-term store of value by design—its fixed supply and independence from central banking authorities still underpin its investment thesis—but the near-term price behavior reveals an asset whose risk profile is closely tied to broader market cycles. For institutions, the finding that Bitcoin correlates with growth equities adds nuance to portfolio construction, suggesting that crypto exposure may be most effective when paired with assets that can withstand higher interest-rate regimes or leveraged liquidity conditions.
From a market-building perspective, the evolution toward deeper integration with traditional finance could spur further product innovation and regulatory clarity. In a world where tokenized markets and AI-driven economies become more pervasive, Bitcoin’s potential to serve as a digital monetary component—though not guaranteed—could gain new relevance as investors seek hedges against macro uncertainties or asymmetric risk exposures. The Grayscale report highlights these dynamics without overselling the pace or inevitability of such a transition, anchoring expectations in observable market structures, ETF activity, and the behavior of major on-ramps like Coinbase.
What to watch next
- Monitor ETF inflows into Bitcoin-linked funds in the coming quarters to gauge potential liquidity-driven support.
- Track retail participation in crypto amid any renewed appetite for high-growth narratives and AI-related themes.
- Observe price action around major exchange on-ramps (e.g., Coinbase) for signs of demand normalization or persistent discounts.
- Watch for shifts in broader risk sentiment that could re-anchor Bitcoin’s correlations with growth equities rather than traditional safe havens.
- Assess regulation and institutional adoption milestones that might alter the pace of Bitcoin’s integration into mainstream portfolios.
Sources & verification
- Grayscale Market Byte on Bitcoin trading more like growth than gold, including references to Bitcoin’s correlation with software equities and macro risk sentiment.
- Historical price context, including the October 2025 liquidation event and subsequent selloffs in November 2025 and January 2026.
- Notes on price discounts at Coinbase and the role of U.S. sellers in recent weeks.
- Statements and framing around Bitcoin’s potential future monetary role amid digitalization and tokenized markets.
Bitcoin’s evolving role amid market dynamics
Bitcoin (CRYPTO: BTC) is navigating a shifting nexus where its core value proposition as a fixed-supply asset intersects with the realities of an increasingly liquid and regulated financial system. Grayscale’s analysis is careful to separate near-term price dynamics from the longer-term investment thesis. While the data show that Bitcoin has not yet displaced gold as a monetary anchor, the asset’s growing integration with institutional channels and exchange-traded products could, over time, reframe its place in diversified portfolios. The near-term backdrop remains a test of liquidity, risk appetite, and the willingness of capital to flow back into crypto as macro conditions evolve.
As markets digest these observations, industry participants will be watching whether Bitcoin can regain momentum through renewed ETF inflows or a revival of retail interest outside of AI and growth narratives. The coming months will reveal whether the current trend toward growth-equity sensitivity is a temporary anomaly or a signal of a deeper, structural revaluation of how crypto assets fit into a digitized, AI-enhanced financial ecosystem.
Ultimately, the conversation centers on duration and resilience: can Bitcoin sustain a longer-term store-of-value narrative while also fulfilling a functional role in a fast-evolving financial architecture? The Grayscale report suggests that both outcomes are possible, contingent on liquidity, regulatory clarity, and the pace at which tokenized finance expands beyond niche markets into mainstream capital allocations. The road ahead will require careful monitoring of price action, investor flow, and the health of risk markets—the triad that increasingly determines whether Bitcoin remains a sanctuary or a sophisticated, dynamic component of diversified portfolios.
The Dow was struggling to hold onto gains in Monday trading.
After opening lower, then rallying to an intraday record of 50,219.40, the Dow was back down 29 points, or 0.1%.
The S&P 500 was up 0.5%, with artificial intelligence and riskier stocks leading the index. The Nasdaq Composite was up 0.9%. The S&P 500 and Nasdaq are on pace for their best two-day stretch since November, according to Dow Jones Market Data.
Crypto World
Robinhood Q4 2025 Earnings Miss Revenue Targets as Crypto Trading Revenue Drops 38% Year-Over-Year
TLDR:
- Robinhood reported Q4 revenue of $1.28 billion, missing Wall Street’s $1.35 billion estimate by 5.2%
- Crypto revenue declined 38% year-over-year to $221 million while options revenue surged 41% to $314 million
- Gold subscribers reached 4.2 million users, up 58% year-over-year, driving premium service adoption
- Company deployed $653 million in share buybacks during 2025, repurchasing 12 million shares at $54.30 average
Robinhood Q4 2025 earnings revealed mixed results as the trading platform reported revenue of $1.28 billion, falling short of Wall Street’s $1.35 billion estimate.
The company posted adjusted EBITDA of $761 million, missing analyst expectations of $833 million, while net income reached $605 million.
Transaction-based revenue totaled $776 million, marking a 15% year-over-year increase but trailing the estimated $791.6 million. Earnings per share of $0.66 beat the $0.63 estimate.
Revenue Streams Show Divergent Performance Trends
The platform’s crypto trading segment experienced a notable decline during the quarter. Crypto revenue dropped 38% year-over-year to $221 million, missing the $242 million estimate.
This contraction came as digital asset trading volumes moderated from previous periods. Meanwhile, options revenue surged 41% to $314 million, demonstrating continued retail investor appetite for derivatives trading.
Equities revenue climbed 54% to $94 million, reflecting increased stock trading activity among users. Net interest revenue grew 39% to $411 million, benefiting from higher interest rates and expanded lending operations.
Other revenue streams jumped 109% to $96 million, driven by diversified product offerings beyond core trading services.
Total revenue grew 27% year-over-year despite the crypto segment’s weakness. Transaction-based revenue represented the largest component at $776 million.
Wall St Engine shared detailed metrics through their platform, noting the variance between actual and estimated results across multiple categories.
Operating expenses rose 38% year-over-year to $633 million, outpacing revenue growth. Adjusted operating expenses including stock-based compensation reached $597 million, up 18% from the prior year.
The expense increase reflected continued investment in platform infrastructure and regulatory compliance costs.
User Metrics and Capital Allocation Strategy
Funded customers reached 27.0 million, representing 7% year-over-year growth. Investment accounts totaled 28.4 million, an 8% increase from the previous year.
Gold subscribers, the platform’s premium tier, hit 4.2 million, surging 58% year-over-year as users sought enhanced features and benefits.
Total platform assets under management reached $324 billion, jumping 68% year-over-year. Average revenue per user stood at $191, climbing 16% compared to the prior year.
Net deposits totaled $15.9 billion for the quarter, with trailing twelve-month deposits reaching $68.1 billion.
The company maintained its cash position at $4.3 billion in cash and cash equivalents. Share buybacks continued during the quarter, with $100 million deployed to repurchase 0.8 million shares at an average price of $119.86. Full-year 2025 buybacks totaled $653 million, retiring 12 million shares at an average price of $54.30.
Management addressed the quarter’s results and long-term strategy in their earnings commentary. According to company executives, “Our vision hasn’t changed: we are building the Financial SuperApp.”
The leadership team reflected on the annual performance, stating that “2025 was a record year where we set new highs for net deposits, Gold Subscribers, trading volumes, revenues, and profits, and we closed the year with a strong Q4.”
Tether has deepened its push into blockchain infrastructure with a new strategic investment in LayerZero Labs, the company behind one of the crypto industry’s most widely used interoperability protocols.
Summary
- Tether Investments backed LayerZero to support blockchain interoperability.
- USDt0 has processed over $70 billion in cross-chain transfers in under a year.
- The partnership supports payments, custody tools, and AI-driven finance systems.
The deal, announced on Feb. 10, reflects Tether’s growing focus on building the technical foundations needed for stablecoins and tokenized assets to move smoothly across different blockchains.
Financial terms of the investment were not disclosed. LayerZero (ZRO) builds technologies that allow data and tokens to flow safely between blockchains without the need for centralized middlemen.
Strengthening Cross-Chain Infrastructure
Several major projects are currently supported by its interoperability framework, which has gained widespread adoption in the cryptocurrency sector.
LayerZero’s support for USDt0, Tether’s omnichain version of USDT, and XAUt0, a digital asset backed by gold, are at the heart of the collaboration. Its Omnichain Fungible Token standard serves as the foundation for both tokens.
This framework prevents the fragmentation that often occurs in cross-chain transfers by enabling assets to flow seamlessly across multiple blockchain networks while preserving unified liquidity.
In less than a year, USDt0 has enabled more than $70 billion in cross-chain transactions, according to Tether. This level of activity has been cited as evidence that large-scale interoperability can function under live market conditions.
The results have helped position LayerZero as a core infrastructure provider in the digital asset ecosystem. Tether said the performance of these systems played a major role in its decision to invest.
According to the company, interoperability is crucial for lowering market fragmentation and increasing the viability of stablecoins for international payments and settlements. It holds that more efficient and seamless transactions can result from improved network connectivity.
Expanding Into Payments and Agentic Finance
To support this goal, Tether plans to integrate LayerZero’s infrastructure into its Wallet Development Kit. This kit helps developers build tools for payments, custody, and settlements, making it easier to create real-world financial applications.
Paolo Ardoino, Tether’s chief executive, said the company focuses on investing in platforms that already demonstrate real-world utility. He described LayerZero’s technology as a foundational layer that allows digital assets to move in real time between networks.
The investment is also tied to Tether’s interest in “agentic finance,” where artificial intelligence systems manage wallets and execute transactions independently. As automated payments and micropayments continue to grow, reliable cross-chain infrastructure is seen as increasingly important.
LayerZero chief executive Bryan Pellegrino said the success of USDt0 helped validate the company’s approach. He added that deeper collaboration with Tether would support the development of open and permissionless financial systems.
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