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Uniswap Grabs Early Win as US Judge Dismisses Bancor Patent Lawsuit

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Crypto Breaking News

A New York federal court has dismissed a patent infringement suit brought by Bancor-affiliated entities against Uniswap, finding that the asserted claims describe abstract ideas that are not eligible for patent protection under US law. Judge John G. Koeltl of the Southern District of New York granted the defendants’ motion to dismiss the complaint filed by Bprotocol Foundation and LocalCoin Ltd. The ruling, issued on February 10, leaves room for the plaintiffs to amend within 21 days; absent a timely amendment, the dismissal would become with prejudice. While the decision represents a procedural win for Uniswap, it does not resolve the merits of the underlying dispute, which centers on whether the decentralized exchange’s technology infringes patented methods for pricing and liquidity.

Key takeaways

  • The court applied the Supreme Court’s two-step framework for patent eligibility and determined the challenged claims relate to an abstract concept—the calculation of currency exchange rates for transactions—rather than a patentable invention.
  • Even though the patents touch on blockchain-based automation, the judge found no inventive concept sufficient to transform the abstract idea into a patent-eligible application.
  • The complaint was dismissed without prejudice, giving Bprotocol Foundation and LocalCoin Ltd. a 21-day window to file an amended complaint addressing the court’s concerns.
  • Direct infringement, induced infringement, and willful infringement claims were all dismissed, with the court indicating the plaintiffs failed to plausibly plead that Uniswap’s code contains the patented reserve-ratio features.
  • Despite the procedural success for Uniswap, the door remains open for reassertion if the plaintiffs can reframe the allegations to meet the patent-eligibility standard or otherwise articulate a viable infringement theory.

Market context: The ruling sits within ongoing debates over software and business-method patents in crypto, where courts have repeatedly scrutinized whether blockchain-enabled pricing and liquidity mechanisms constitute protectable inventions or abstract financial practices.

Sentiment: Neutral

Market context: The decision comes amid a broader climate in which courts assess blockchain-related claims under established tests for patent-eligibility, potentially influencing how crypto developers approach IP risk and claims enforcement.

Sources & verification: The memorandum opinion and order from Judge Koeltl (Feb. 10); the CourtListener docket for Bprotocol Foundation v. Universal Navigation Inc.; Hayden Adams’ X post reacting to the decision; the original Bancor-Uniswap patent dispute coverage and filings cited in the referenced materials.

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Why it matters

The court’s analysis reinforces the notion that merely applying a conventional pricing algorithm within a blockchain framework may not suffice to render a claim patentable. By characterizing the disputed concepts as abstract ideas tied to currency exchange calculations, the ruling underscores the enduring legal distinction between mathematical formulas and patent-eligible tech implementations, even when those implementations run on decentralized networks. For Uniswap (CRYPTO: UNI), the decision protects the platform from an immediate patent-ownership challenge rooted in fundamental pricing logic that was already broadly implemented across digital asset exchanges.

From Bancor’s perspective, the dismissal—without prejudice—creates a strategic opening. The plaintiffs can attempt to adjust the pleading to address the court’s concerns, potentially reframing the claims to emphasize an “inventive concept” or to articulate a more concrete, non-abstract application tied to a particular technology environment. The outcome may influence later filings against other DeFi protocols if claim language can be refined to meet the legal standard, especially in cases where developers claim that specific programmable constraints or reserve mechanisms are patentable because they are uniquely tied to a given protocol.

Beyond the parties involved, the decision signals how the U.S. patent system balances the protection of crypto innovations against broad, abstract financial techniques. While it does not close the door on all IP actions in DeFi, it does remind developers and litigants that the mere use of blockchain infrastructure or smart contracts does not automatically render a broad abstract idea patent-eligible. The landscape remains nuanced, with the potential for future rulings to alter how similar claims are framed and prosecuted.

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The immediate post-decision commentary from Uniswap founder Hayden Adams, who publicly celebrated the outcome, reflects the high-stakes nature of these disputes for open-source, community-driven projects. Adams’ brief social post—“A lawyer just told me we won”—highlights how patent battles intersect with developer culture and the public perception of DeFi innovation.

What to watch next

  • Whether Bprotocol Foundation and LocalCoin Ltd. file an amended complaint within 21 days, and how the revised claims address the court’s abstract-idea reasoning.
  • Any subsequent court rulings that interpret or apply the “inventive concept” standard to parallel DeFi patent cases, potentially shaping future strategy for both plaintiffs and defendants.
  • Whether additional documents—such as claim charts or technical specifications—emerge to support allegations of infringement tied to Uniswap’s protocol code.
  • Possible settlements or alternative dispute-resolution steps if parties seek to narrow the dispute without protracted litigation.

Sources & verification

  • Memorandum opinion and order by Judge Koeltl, February 10, Southern District of New York.
  • CourtListener docket: Bprotocol Foundation v. Universal Navigation Inc. (docket page cited in filing history).
  • Hayden Adams’ X post reacting to the ruling.
  • Bancor’s patent infringement allegations against Uniswap as documented in prior coverage.

What the ruling changes for DeFi and IP strategy

Uniswap’s procedural win reinforces the importance of framing crypto innovations in terms of concrete technical improvements rather than broad economic practices. For developers, it underscores the need to articulate how a protocol’s specific architecture—beyond generic pricing formulas—contributes a novel, non-obvious technical solution. For plaintiffs, the decision emphasizes the necessity of tying claims to verifiable technical embodiments, such as particular code features or protocol configurations, that clearly differ from ordinary market operations.

What to watch next

Going forward, observers will closely track whether a revised complaint could survive the patent-eligibility hurdle and, if so, how the court will evaluate whether a claimed feature meaningfully transforms an abstract idea into patent-eligible subject matter. The interplay between public blockchain code and patented concepts is likely to remain a focal point as more DeFi projects navigate IP risk in a rapidly evolving regulatory and judicial environment.

Rewritten Article Body

Judicial decision reframes patent-eligibility in a DeFi dispute between Bancor-affiliated plaintiffs and Uniswap

In a decision that foregrounds the ongoing jurisprudence around crypto patents, a New York federal court ruled that Bancor-affiliated plaintiffs’ claims against the Uniswap ecosystem are directed to abstract ideas rather than concrete, patentable inventions. The Southern District of New York, applying the Supreme Court’s two-step framework for patent eligibility, concluded that the core concept—calculating currency exchange rates to facilitate transactions—lacks the inventive concept required to qualify for patent protection. The ruling focuses on US patent law’s limits, not on the operational legitimacy of Uniswap’s decentralized exchange (Uniswap), which remains a foundational player in the DeFi space.

The plaintiffs—Bprotocol Foundation and LocalCoin Ltd.—had alleged that Uniswap’s protocol infringed patents tied to a “constant product automated market maker” mechanism that underpins many liquidity pools on decentralized exchanges. The court’s analysis rejected the argument that merely implementing a pricing formula on blockchain infrastructure could overcome the abstract-idea hurdle. In its view, the use of existing blockchain and smart contract technologies to address an economic problem does not constitute a patentable invention. The court emphasized that limiting an abstract idea to a particular technological environment does not convert it into patent-eligible subject matter, and it found no further inventive concept that would transform the abstract idea into patentable territory.

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Crucially, the memorandum explained that the asserted claims cover the abstract idea of determining exchange rates for transactions rather than a specific, novel technical improvement. The court highlighted that “currency exchange is a fundamental economic practice,” and that the claimed method amounted to nothing more than a mathematical transformation performed in a blockchain-enabled setting. The decision expressly notes that merely asserting a mathematical formula within a decentralized framework does not, by itself, generate eligibility. The ruling also rejected arguments that a particular linkage to reserve ratios in Uniswap’s code or ecosystem would rescue the claims from the abstract-idea category.

Beyond the abstract-idea assessment, the court dismissed the infringement theories levelled by the plaintiffs. It found that the amended complaint failed to plausibly plead direct infringement—specifically, that Uniswap’s publicly available code embodies the claimed reserve ratio constants. Claims of induced and willful infringement were likewise dismissed, with the court stating that the plaintiffs did not credibly show that Uniswap’s team had knowledge of the patents before the lawsuit was filed. The dismissal was without prejudice, preserving the option for the plaintiffs to file an amended pleading that could address these shortcomings.

The decision came with a notable public response: Hayden Adams, the founder of Uniswap, took to X to acknowledge the outcome, signaling a morale boost for developers and teams operating in the open-source DeFi space. The public posting underscored the practical impact of court rulings on the culture and momentum of decentralized finance development.

The procedural posture of the case remains in flux. While Uniswap’s legal team secured a favorable procedural ruling, the case is not over. The plaintiffs have 21 days to amend their complaint; failure to do so would convert the dismissal into one with prejudice, effectively ending the action barring any new claims. If Bancor and LocalCoin elect to proceed with an amended filing, the court will scrutinize whether the revised claims meet the patent-eligibility standard and sufficiently articulate any alleged infringement in a way that satisfies the pleading requirements set forth by the court.

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In the broader context, the decision contributes to a growing body of decisions that caution against overbroad or abstract patent claims in the crypto and DeFi space. It reinforces the premise that software-driven financial concepts—however novel in a blockchain setting—must advance a concrete technical improvement to clear the patent bar. The outcome also signals that, for now, DeFi projects focusing on open, interoperable codebases may enjoy a degree of protection from aggressive patent assertions based on abstract pricing ideas, at least until a more precise standard for crypto-specific technology claims emerges in the courts.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Why XRP Could Still Dip Below $1, Analysts Explain

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Crypto Breaking News

XRP (CRYPTO: XRP) has retraced nearly 63% from its multi-year high of $3.66 to around $1.36 as of Wednesday, a move that market analysts say could carry bearish implications unless buyers reassert themselves. The slide comes amid a confluence of technical signals and growing on-chain activity that could either reinforce a near-term downshift or set the stage for a stubborn reversal. Traders are weighing a technical setup that points toward further pressure against a backdrop of sustained demand from spot XRP ETFs and persistent whale accumulation, painting a nuanced picture for the digital asset’s near-term trajectory. The Gaussian Channel, a charting method used to identify trends and potential support or resistance levels, places XRP at a crossroads where previous patterning has often dictated the tempo of subsequent moves.

Key takeaways

  • The price action has broken below a critical zone near $1.40, aligning with a bearish setup that could extend losses toward the $0.70–$1 range if support fails.
  • The Gaussian Channel shows the upper regression band near $1.16 and the middle band around $0.70, suggesting that a test of important structural levels could unfold over the coming weeks or months.
  • A drop below the local low of $1.12 would validate the bearish scenario described by market technicians, potentially accelerating the downside case.
  • Spot XRP ETF inflows have continued, with cumulative net inflows reaching about $1.01 billion and inflows of roughly $3.26 million on a single day, underscoring ongoing institutional interest.
  • On-chain activity has picked up, with whale transactions exceeding $100,000 and active addresses surging to a six-month high, signaling that buyers remain engaged despite the price decline.
  • Nevertheless, persistent ETF demand and on-chain signals could counterbalance the technical headwinds if liquidity conditions remain favorable and market sentiment improves.

Tickers mentioned: $XRP, $BTC, $ETH

Sentiment: Bearish

Price impact: Negative. A break below key supports could push XRP toward the mid-band around $0.70, extending the downside unless buyers step in.

Trading idea (Not Financial Advice): Hold. Near-term risk remains elevated if $1.12 fails, but renewals in ETF inflows and on-chain activity keep the scene cautiously balanced.

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Market context: The XRP market remains closely tethered to liquidity flows from spot XRP ETFs and evolving on-chain activity. Spot XRP ETF inflows have continued, contributing to roughly $1.01 billion in cumulative net inflows and sustaining roughly $1.01 billion in assets under management, with daily inflows of millions that underscore ongoing institutional interest. At the same time, on-chain dynamics have shown resilience, with whale activity and active addresses rising even as price action remains under pressure. These factors collectively reflect a broader environment where ETF-driven demand can offset, at least temporarily, technical headwinds.

Why it matters

For investors watching XRP, the current setup matters because it juxtaposes a stubborn price decline with stubborn liquidity support. The Gaussian Channel’s readings imply that XRP could oscillate within a defined corridor before a decisive breakout or breakdown occurs. If the upper band near $1.16 acts as a temporary ceiling and the price fails to hold above the lower levels, the drawdown could extend toward the $0.70–$1 region, a zone that previously lacked robust testing for sustained support. Such a breach would be meaningful not just for XRP bulls and bears but for funds and institutions tracking the asset as part of broader crypto exposure. The dynamics of ETF flows, as observed in late-2025 through 2026, emphasize that institutional demand can create a buffer against rapid declines, but they are not a guarantee against further losses if macro conditions or sentiment deteriorate.

“The middle regression band currently ties up around $0.70, which is also a previous year-long resistance level seen back in 2023/2024, and hasn’t been backtested for support.”

On the liquidity side, the market has benefitted from a steady stream of ETF inflows. The Canary XRP ETF launch, which began late in 2025, has contributed to a trajectory of inflows that has pushed the cumulative total higher, with the latest daily inflows evidencing continued demand from institutional players. This flow is not a panacea for price declines, but it argues for a more nuanced outlook than a pure technical read would suggest. Meanwhile, on-chain metrics paint an equally important portrait. Analysts have highlighted a surge in XRP activity: whale transactions of over $100,000 and a spike in active addresses have suggested that sector participants remain engaged and are deploying capital despite adverse price movements. These signals can be precursors to a bottom or a renewed uptrend, depending on whether they align with broader market liquidity and risk appetite.

Analysts have also cited the importance of the price level around $1.12. A move below that local low could be a technical confirmation of the bearish scenario, triggering a cascade of downside protections and prompting a reevaluation of risk parity in XRP portfolios. Conversely, if ETF inflows persist and on-chain activity maintains its strength, XRP could find a foundation and attempt a staged recovery as liquidity conditions improve and risk sentiment stabilizes. The tension between price-driven momentum and liquidity-driven demand is a defining feature of XRP’s current phase, and market participants are closely watching both channels for signals of the next major move.

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As the market weighs these factors, the broader crypto environment remains cautious. The behavior of BTC and ETH—often a barometer for risk sentiment—has a bearing on how XRP will respond to developing macro cues and regulatory dynamics. Although XRP has decoupled at times from the broader market, the path of least resistance in the near term could be influenced by the balance between selling pressure at technical resistance and fresh inflows that sustain institutions’ appetite for XRP exposure.

What to watch next

  • Monitoring XRP’s level relative to the $1.12 local low to gauge whether the bearish scenario gains traction.
  • Tracking the Gaussian Channel bands around $1.16 (upper) and $0.70 (middle) for potential testing or breakout signals.
  • Observing ongoing spot XRP ETF inflows and AUM, which could widen the collision between technical resistance and liquidity-driven strength.
  • Watching on-chain metrics, especially the trajectory of whale transactions and daily active addresses, for signs of renewed accumulation or distribution.

Sources & verification

  • Chart Nerd’s analysis on Gaussian Channel fractals and XRP price projections referenced in a social post.
  • Discussion on XRP price movement below the 1.60 level and potential downside scenarios.
  • Canary XRP ETF launch and the resulting inflow data, including cumulative inflows and daily inflows feeding assets under management.
  • Santiment’s reports on whale activity, large XRP transactions, and address activity as a measure of on-chain demand.

Market reaction and key details

The current XRP setup binds a bear-case price scenario to a backdrop of ongoing ETF inflows and active on-chain participation. While the price remains under pressure, the inflows into spot XRP ETFs and sustained whale engagement provide a counterbalancing force that could underpin a bottom if liquidity remains ample and risk appetite stabilizes. The path forward will likely hinge on whether XRP can stabilize above critical support levels and whether on-chain signals translate into durable buying interest.

What to watch next

  • Whether XRP can hold above $1.12 on a closing basis, which would delay a deeper pullback.
  • How ETF inflows trend over the next several sessions and whether AUM surpasses the $1.05–$1.10 billion range.
  • Any new regulatory or product developments affecting XRP ETFs or custodial structures that could influence liquidity and investor confidence.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Stablecoin Conversion Costs Highest in Africa, Data Shows

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Stablecoin Conversion Costs Highest in Africa, Data Shows

Africa recorded the highest median stablecoin-to-fiat conversion spreads among tracked regions in January, according to data observed by payments infrastructure company Borderless.xyz, covering 66 currency corridors and nearly 94,000 rate observations.

The regional median spread was 299 basis points, or about 3%, compared with roughly 1.3% in Latin America and 0.07% in Asia. In Africa, conversion costs ranged from about 1.5% in South Africa to nearly 19.5% in Botswana. 

The data measures “spreads,” or the gap between a provider’s buy and sell rate for a stablecoin-to-fiat pair. Similar to a bid-ask spread in traditional markets, it reflects the execution cost paid when converting stablecoins into local fiat currency. 

The findings suggest that while stablecoins are promoted as a cheaper alternative to traditional remittance rails, actual costs vary widely across African markets and appear closely tied to local provider competition and liquidity. 

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Regional median spreads for stablecoin conversions. Source: Borderless.xyz

Competition drives pricing gaps

Borderless.xyz found that markets with several competing providers generally had conversion costs between about 1.5% and 4%. In markets with only one provider, costs often exceeded 13%. 

Botswana recorded the highest median conversion cost in January at 19.4%, though pricing improved later in the month. Congo’s costs were also above 13%. By contrast, South Africa, which has a more competitive foreign exchange market, showed costs of about 1.5%. 

The report suggested that these differences are driven primarily by local market conditions, such as liquidity and competition, rather than the underlying blockchain technology. In countries where multiple providers operate, conversion costs stayed closer to the regional average. 

Conversion costs in different competition levels. Source: Borderless.xyz

Related: Uganda opposition leader promotes Bitchat amid fears of internet blackout

Stablecoins versus traditional foreign exchange

The report also compares stablecoin mid-rates with traditional interbank foreign exchange rates, measuring what it calls the “TradFi premium.”

This metric reflects whether stablecoin exchange rates are cheaper or more expensive than traditional FX mid-market rates. 

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Across 33 currencies globally, the median difference between stablecoin exchange rates and traditional mid-market foreign exchange rates was about 5 basis points, or 0.05%, indicating the two were largely in line.

In Africa, the median gap was wider at roughly 119 basis points, or about 1.2%, though the difference varied significantly depending on the country.

On Jan. 24, economist Vera Songwe said at the World Economic Forum in Davos that stablecoins are helping reduce remittance costs across Africa, where traditional transfer services can charge about $6 per $100 sent.

The new data adds context, suggesting that while stablecoins offer faster settlement and potential savings compared with legacy services, conversion costs within specific corridors remain elevated. 

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