Crypto World
Crypto PAC to Oppose Al Green in Texas Democratic Primary
The pro-crypto political action committee (PAC) Protect Progress will reportedly spend $1.5 million opposing Texas representative Al Green in the upcoming Democratic Party primary over his past opposition to crypto.
“As a member of the Financial Services Committee, Representative Al Green has decided to try and stop American innovation in its tracks,” Protect Progress, an affiliate of the major crypto PAC Fairshake, told The Hill on Thursday.
Green, a Democrat who has represented Texas’s 9th congressional district in the House since 2005, opposed the stablecoin regulating GENIUS Act and the CLARITY Act, two crypto-focused bills that the House passed last year.
“Texas voters can no longer sit by and have representation in Congress that is actively hostile towards a growing Texas crypto community,” Protect Progress said. “We are committed to electing new members who embrace innovation, growth and wealth creation for all Americans.”
It’s the crypto lobby’s latest attempt to influence Congress ahead of the midterm elections in November. In the 2024 elections, the crypto industry emerged as one of the largest spenders, with Fairshake alone spending roughly $130 million, resulting in an influx of pro-crypto elected officials.
Super PACs raise money through donations but can’t directly fund or coordinate with political campaigns. Instead, they purchase ads and use other methods to support specific candidates.
Advocacy group says Green against crypto
Green will face off against Christian Menefee in the Democratic primary in March for the reshaped Houston-area district.
Texas will be one of the first states to hold a primary vote on March 3, along with Arkansas and North Carolina, when each party will choose its nominee, followed by the general election on Nov. 3.
Crypto advocacy organization, Stand With Crypto, which compiles previous statements and actions to rate US politicians on their crypto stances, lists Green as “strongly against crypto” based on his voting history and statements about the technology.

Menefee supports blockchain technology
Meanwhile, Stand With Crypto rated Menefee as “strongly supports crypto” based on his answers to the organization’s questionnaire, with one of his answers expressing an interest in legislation that uses the technology for real-world problems, such as combating deed fraud by recording property records on the blockchain.
Related: Trump Bitcoin adviser David Bailey wants to create a $200M PAC
“That kind of innovation could protect working families from scams and modernize outdated government systems. I’d support or introduce bills that promote practical, public-serving blockchain use cases like this,” he said.
Another Fairshake affiliate, Defend American Jobs, announced on Tuesday that it was spending $5 million to support crypto-friendly Republican Barry Moore in his bid for the US Senate. Fairshake disclosed in January that it had gathered $193 million ahead of the midterm elections.
Magazine: 2026 is the year of pragmatic privacy in crypto — Canton, Zcash and more
Crypto World
Morph Integrates USDT0, Unlocking Access to the World’s Largest Stablecoin Liquidity Pool
[PRESS RELEASE – Singapore, Singapore, February 13th, 2026]
Ethereum-based payments settlement network Morph has integrated USDT0, the omnichain Tether liquidity network powered by LayerZero. The move gives Morph, which aims to become the settlement layer for everyday money, direct access to unified USDT liquidity across 18+ blockchains.
For developers building payment apps, merchant tools or even DeFi protocols on Morph, this means they can tap into a massive, ready-made liquidity pool from day one without the headache of managing a dozen different bridged token contracts.
No more bridges. No more wrapped tokens
Traditionally, using USDT on another blockchain requires a bridge. This process locks the original tokens and mints a new, “wrapped” version on the destination chain.
These wrapped variants are not the same asset. They are separate tokens backed by assets held in complex smart contracts, leading to liquidity fragmentation — where the same currency is trapped in isolated pools — and introducing counterparty risk if a bridge fails.
USDT0 proposes a different model. Instead of locking and minting, it uses a burn-and-mint mechanism. To move USDT from Chain A to Chain B, tokens are burned on Chain A and minted directly from Tether’s canonical supply on Chain B.
As a result, USDT0’s Omnichain Fungible Token (OFT) standard creates a single, consistent asset across all supported networks.
What USDT0 enables for builders on Morph
While many L2s compete for general DeFi activity, Morph is engineered for a specific vertical: payments. Its architecture — featuring sub-300ms block times and zero-fee stablecoin transfers — targets merchant settlement, remittances, crypto cards issuance, and treasury management.
For such use cases, deep and frictionless liquidity is non-negotiable. USDT, with a market cap exceeding $185 billion, represents the largest pool of stablecoin liquidity in crypto.
As the USDT0 integration is now live on Morph mainnet, developers on Morph can integrate what is effectively a universal USDT, slashing technical overhead and simplifying cross-chain user experience, which means:
- Payment applications can process cross-border transactions with instant settlement and minimal overhead.
- DeFi protocols can access deeper liquidity without managing multiple stablecoin variants.
- Merchant platforms can accept stablecoin payments with seamless conversion and settlement.
- Financial institutions can execute treasury operations with predictable behavior across chains.
The combination of USDT0’s unified liquidity and Morph’s payment-optimized infrastructure lays a powerful foundation for next-generation financial applications.
We’re excited to work alongside the USDT0 team in advancing the vision of unified, omnichain liquidity that makes stablecoins truly borderless.
Money at the speed of life.
About Morph
Morph is an Ethereum-based, payments-first settlement layer and the native onchain home of BGB, focused on building the foundation for global consumer finance onchain. Morph supports real-world financial activity across payments, savings, identity, and rewards, enabling scalable, onchain settlement for consumer and business use. Guided by the Morph Foundation, the network connects more than 120 million users through the Bitget and Bitget Wallet ecosystems.
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Crypto World
XRPL Activates XLS-85 Token Escrow Upgrade: XRP Price Impact
The XRP Ledger (XRPL) activated the XLS-85 amendment on February 12, 2026, bringing native escrow to all Trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs). This upgrade opens new use cases for secure, programmable asset settlement.
Moreover, the move expands XRPL’s utility, and market watchers suggest the upgrade could pave the way for institutional capital deployment. But will this impact XRP’s price? That is a question that remains to be answered.
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XLS-85 Amendment Extends Escrow Functionality Beyond XRP
XLS-0085 expands how escrow works on the network. Until now, XRPL’s native escrow functionality was limited to XRP. With XLS-85, that restriction is removed.
“From stablecoins like RLUSD to Real World Assets, the XRPL now supports secure, conditional, on-chain settlement for all assets,” RippleX stated.
XLS-85 upgrades the existing EscrowCreate, EscrowFinish, and EscrowCancel transaction types. Importantly, token issuers retain control. Tokens must explicitly allow escrow functionality through issuer-level flags. This preserves compliance controls and token governance structures already in place.
This is not just a minor tweak. It shifts XRPL from being a network where only XRP could be escrowed to one where assets gain native time-lock and conditional release functionality.
That opens the door to:
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- Token vesting schedules
- Institutional settlement workflows
- Treasury management for issued assets
- Conditional stablecoin payouts
- Structured financial products built directly on XRPL
“Token Escrow (XLS-85) is an upgrade to the #XRP Ledger, which plugs directly into it and makes the DEX institution-ready. The Institutions will begin deploying CAPITAL on #XRPL starting 12 February,” an analyst wrote.
The latest update comes shortly after XRPL activated Permissioned Domains earlier this month to expand institutional use cases.
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XRPL’s Token Escrow Upgrade Raises Questions About XRP’s Long-Term Price Impact
It’s worth noting that while the activation of XLS-0085 does not directly increase demand for XRP, it could influence the asset’s long-term price trajectory through broader network effects.
The amendment extends native escrow functionality to Trustline-based tokens and Multi-Purpose Tokens, rather than expanding escrow usage for XRP itself. That means the upgrade does not automatically create additional XRP lockups or immediate supply constraints.
However, the structural implications are more nuanced. If token issuers, including stablecoin providers, RWA platforms, or institutions, adopt XRPL because it now supports native token escrow:
- Token issuance on XRPL could increase
- Transaction volume may rise
- The number of active accounts could expand
- Demand for XRP may grow due to fees and reserve requirements
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That increases network usage, and XRP is still the gas and reserve asset of the ledger. Higher utility → potentially higher demand for XRP → possible price appreciation. But this depends entirely on real adoption.
Upgrades like XLS-0085 signal that XRPL is positioning itself as a tokenized finance infrastructure. If markets perceive XRPL as becoming more competitive with Ethereum or other token platforms, sentiment alone can influence price. Crypto markets often price in narrative and positioning, not just usage.
In the short term, price impact may depend more on market sentiment than on immediate usage metrics. Over the longer term, sustained ecosystem growth driven by token-enabled escrow could contribute to stronger network fundamentals, which historically play a role in digital asset valuation.
For now, XRP continues to face challenges along with the broader market. At press time, it was trading at $1.36, down 1.35% over the past day.
Crypto World
UBS Expands BlackRock Bitcoin ETF Stake as Institutional Crypto Interest Grows
TLDR:
- UBS raised its IBIT stake to 548,614 shares valued at $27.2M.
- The position remains small compared with UBS’s $616B reported portfolio.
- Crypto trading tools are being tested for high‑net‑worth clients.
- Online crypto supporters and critics reacted to the disclosure on social media.
UBS expanded its BlackRock Bitcoin ETF holdings to $27.2M, signaling steady institutional interest. The move comes as the bank tests crypto trading for wealthy clients and builds digital asset tools.
Social media users reacted, with supporters calling it adoption and critics noting it is ETF exposure, not direct Bitcoin ownership.
UBS Expands Exposure Through BlackRock’s Bitcoin ETF
UBS increased its holdings in BlackRock’s iShares Bitcoin Trust to 548,614 shares. The position was valued at $27.2 million as of December 31, 2025.
The disclosure appeared in the bank’s January 29, 2026, 13F filing with the U.S. Securities and Exchange Commission.
The position represents a sharp increase from UBS’s previous holdings. However, the allocation remains small compared to its $616 billion 13F portfolio. The structure shows exposure through regulated ETF instruments rather than direct Bitcoin custody.
Market observers noted the move as part of a broader institutional trend. The investment method reflects a preference for compliance, custody protection, and regulated access.
This approach also aligns with existing risk frameworks used by large financial institutions.
Online discussions intensified after crypto commentator Vivek Sen shared the disclosure on X. His post framed the development as a major signal of banking sector participation. The tweet amplified visibility and drove conversation across crypto-focused communities.
The ETF structure provides price exposure without direct asset ownership. This model allows institutions to participate in Bitcoin markets while avoiding on-chain operational risks. It also fits traditional portfolio reporting standards.
Institutional Strategy and Digital Asset Infrastructure Growth
Skeptics online noted that ETF exposure differs from direct Bitcoin ownership. They argued that the structure limits self-custody and blockchain-level participation. Supporters countered that institutional adoption often begins through regulated financial products.
UBS has also been testing crypto trading services for wealthy clients. The bank is building digital asset tools designed for private banking use. These developments show a controlled approach to digital asset integration.
The ETF allocation reflects a gradual strategy rather than a rapid transformation. UBS appears focused on structured exposure rather than speculative positioning. This aligns with long-term wealth management and compliance priorities.
The filing shows how traditional finance institutions are entering crypto markets cautiously. ETF-based exposure offers familiarity, governance standards, and regulatory clarity. This model supports incremental adoption across conservative portfolios.
As more filings emerge, market participants continue tracking institutional movements. ETF flows remain one of the clearest data points for measuring bank-level participation. UBS’s position now places it among visible institutional holders of Bitcoin-linked assets.
The disclosure adds to the growing list of regulated financial entities using ETFs for crypto exposure. The strategy reflects measured integration rather than direct blockchain engagement.
Crypto World
Markets Signal Stress as El Salvador Sticks to Its Bitcoin Playbook
Bitcoin’s (BTC) bear market has weighed heavily on investors across the spectrum. Corporate treasuries, major whales, and even nation-state holders have all felt the pressure.
The cryptocurrency’s slide has slashed the value of El Salvador’s holdings as credit default swaps rise to a five-month high, raising concerns over the country’s IMF program and debt outlook.
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El Salvador’s Bitcoin Bet Under Pressure as Portfolio Drops
According to the latest data from El Salvador’s Bitcoin Office, the country’s Bitcoin reserves stand at 7,560 BTC, worth approximately $503.8 million. Bloomberg reported that the portfolio’s value has fallen from around $800 million at Bitcoin’s October 2025 peak, marking a drop of nearly $300 million in just four months.
Bukele, an ardent Bitcoin advocate, has continued purchasing one Bitcoin per day. However, this strategy increases the country’s exposure to market volatility.
In contrast, Bhutan recently sold $22.4 million worth of Bitcoin. The divergent strategies of El Salvador and Bhutan reflect fundamentally different risk philosophies.
Bhutan’s Bitcoin mining operations generated more than $765 million in profit since 2019. However, the 2024 Bitcoin halving significantly increased mining costs, compressing margins and reducing returns. Bhutan now appears to be liquidating part of its holdings, while El Salvador continues to prioritize long-term accumulation.
Nonetheless, the country has also diversified its portfolio. Last month, it spent $50 million to acquire gold as demand for the safe-haven metal rose amid macroeconomic tensions.
IMF Loan Talks Face Strain Over El Salvador’s Bitcoin Policy
El Salvador’s deepening commitment to cryptocurrency has impacted relations with the International Monetary Fund. The government’s continued Bitcoin purchases, combined with delays in implementing pension reforms, have complicated the country’s IMF agreement.
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The Fund has expressed concern about Bitcoin’s potential impact on fiscal stability. A disruption to the IMF program would weaken one of the key supports behind El Salvador’s sovereign debt recovery. Over the past three years, the country’s bonds have returned more than 130%, making them one of the standout turnaround stories in emerging markets.
“The IMF may take issue with disbursements potentially being used to add Bitcoin. Bitcoin being down also doesn’t help to ease investors’ concerns,” Christopher Mejia, an EM sovereign analyst at T Rowe Price, told Bloomberg.
The IMF approved a 40-month Extended Fund Facility on February 26, 2025, unlocking about $1.4 billion in total, according to official IMF documentation. The first review ended in June 2025, with $231 million disbursed.
However, the second review has remained on hold since September, following the government’s delay in publishing a pension system analysis. During that period, El Salvador continued to add to its Bitcoin reserves despite repeated warnings from the IMF.
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A third review is scheduled for March, with each review tied to additional loan disbursements.
“The continued purchase of Bitcoin, in our view, does create some potential challenges for the IMF reviews. The market would react quite poorly if the anchor provided by the IMF were no longer present.” Jared Lou, who helps manage the William Blair Emerging Markets Debt Fund, said.
Meanwhile, bond markets are signaling rising concern over El Salvador’s fiscal outlook. Credit default swaps have climbed to a five-month high, reflecting increasing investor anxiety about the country’s repayment capacity.
According to data compiled by Bloomberg, El Salvador faces $450 million in bond payments this year, with obligations increasing to nearly $700 million next year.
El Salvador’s Bitcoin policy now sits alongside key fiscal and IMF negotiations. The outcome of upcoming IMF reviews and the country’s bond repayment schedule will play a significant role in shaping investor confidence and the sustainability of its debt trajectory.
Crypto World
DeFi’s Role in a Multi-Chain Financial System
For a while, crypto acted like high school cliques. One chain. One tribe. One ecosystem. But finance doesn’t work that way. Capital moves. Liquidity hunts yield. Users want speed, low fees, and security — not ideology.
Welcome to the multi-chain era.
The Shift From “One Chain to Rule Them All”
Early narratives pushed a single dominant smart contract platform. Then reality happened.
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Network congestion
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High gas fees
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Fragmented liquidity
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Scalability ceilings
Today, value flows across ecosystems like:
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Ethereum
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Solana
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Avalanche
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Arbitrum
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Optimism
Each chain optimizes for something different: decentralization, speed, throughput, cost efficiency, or developer tooling.
No single network can dominate all dimensions at once. And that’s exactly where DeFi becomes critical.
DeFi as the Financial Glue
In a multi-chain world, DeFi acts as infrastructure — not just applications.
It provides:
1. Liquidity Routing
Capital doesn’t stay loyal. It moves toward better yields and incentives. Cross-chain bridges and liquidity layers enable assets to flow between networks, allowing users to deploy capital wherever it’s most productive.
Without DeFi, each chain would be an isolated island. With DeFi, they become connected economic zones.
2. Composability Across Ecosystems
DeFi introduced composability — the “money lego” concept.
In a multi-chain system, this expands further:
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A lending protocol on one chain
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A DEX aggregator on another
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A yield optimizer somewhere else
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Wrapped or bridged assets, tying them together
This interconnected design turns separate chains into a distributed financial stack.
3. Risk Diversification
Multi-chain finance reduces systemic concentration risk.
If one chain experiences congestion or technical issues, capital can migrate elsewhere. This flexibility strengthens the overall system, similar to global financial markets operating across jurisdictions.
In traditional finance, markets are interconnected but geographically distributed. DeFi mirrors that model digitally.
4. Specialized Financial Zones
Different chains are becoming financial “specialists”:
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High-speed trading environments
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Institutional settlement layers
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NFT ecosystems
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Experimental governance playgrounds
DeFi protocols adapt to each environment’s strengths.
Instead of forcing every activity onto one blockchain, multi-chain DeFi allows specialization without isolation.
The Rise of Cross-Chain Infrastructure
Multi-chain finance would collapse without secure interoperability.
Key components include:
Security remains the biggest challenge. Bridge exploits have historically drained billions. A resilient multi-chain future depends on robust cryptographic verification and minimized trust assumptions.
This is where innovation is accelerating rapidly.
Governance in a Multi-Chain World
As protocols deploy across multiple ecosystems, governance becomes more complex.
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Should voting power be unified?
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Should token emissions vary by chain?
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How are incentives aligned across environments?
DAOs are evolving from single-chain governance systems into cross-chain coordination networks.
The future isn’t just multi-chain liquidity. It’s multi-chain decision-making.
What This Means for the Future of Finance
A multi-chain financial system resembles a digital federation:
DeFi is not just a product layer — it is the coordination layer.
It ensures that capital efficiency, innovation, and accessibility are not confined to one ecosystem.
And here’s the strong opinion:
The chains themselves may compete.
But DeFi wins either way.
Because wherever value flows, DeFi builds the rails.
Final Thoughts
The future of crypto finance isn’t maximalist — it’s modular. A multi-chain world enables specialization, resilience, and global access. DeFi transforms fragmented networks into an interconnected financial web.
The result? A permissionless, borderless system where capital moves at the speed of code — not paperwork. And that’s not just evolution. That’s financial infrastructure getting an upgrade.
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Crypto World
Hibachi Launches FX Exchange for Stablecoin Settlement on Arc Network
TLDR:
- Stablecoin market reached $308 billion in 2025 with $46 trillion in annual transaction volume.
- Traditional FX markets still require T+2 settlement despite stablecoin instant transfer capabilities.
- Hibachi offers private orderbooks with onchain verification and self-custody options for traders.
- Circle Ventures backed Hibachi through Arc Builders Fund for sub-second finality infrastructure.
Hibachi has announced the launch of a new foreign exchange platform designed for stablecoin settlement. The platform addresses gaps in current FX markets by combining instant settlement with professional-grade execution.
Built on Circle’s Arc network, the exchange targets regulated institutions and professional traders. Stablecoin market capitalization reached $308 billion in 2025, creating demand for modern FX infrastructure.
Bridging the Gap Between Traditional and Onchain Markets
The stablecoin market processed $46 trillion in transaction volume last year. However, traditional FX markets continue operating on outdated infrastructure requiring T+2 settlement.
Banks maintain control through opacity and restricted liquidity access in the $10 trillion daily spot FX market. This creates friction as stablecoin adoption accelerates across enterprise users.
Hibachi shared its vision through a post on social media platform X. The company stated that no existing venue combines stablecoin settlement with exchange-grade execution and transparent orderbooks.
Traditional FX venues require bank intermediation and nostro accounts across multiple currencies. Centralized crypto exchanges introduce counterparty risk through custody requirements.
Current onchain venues present different challenges for institutional participants. These platforms lack privacy protections, exposing trading strategies and order flow to competitors.
Most fail to meet compliance standards that regulated firms require. The result leaves professional traders without adequate infrastructure for stablecoin-based FX operations.
The new platform aims to solve these limitations through specific design choices. Hibachi will offer instant settlement alongside tight bid-ask spreads and deep liquidity pools.
Orders and positions remain private while maintaining onchain verification capabilities. The exchange will support both self-custody and third-party custodian integrations.
Arc Network Powers Next-Generation Infrastructure
Hibachi selected Circle’s Arc network as its technical foundation. The blockchain network provides sub-second transaction finality and uses stablecoins for gas fees.
Arc also offers configurable privacy features that address institutional requirements. Circle Ventures backed Hibachi through participation in the Arc Builders Fund.
The exchange will serve spot and derivatives trading for multiple currency pairs. Professional market participants need matching speeds and uptime that rival traditional venues.
Hibachi plans to deliver these capabilities while maintaining regulatory compliance features. The platform includes reporting tools designed for regulated financial institutions.
A Deloitte survey found that 99 percent of enterprise CFOs envision using stablecoins long-term. This growing acceptance creates opportunity for specialized infrastructure providers.
Stablecoin-denominated currencies in different nations enable competition against legacy banking systems. Transparent orderbooks and broad access challenge the existing walled garden approach.
The FX market transformation reflects broader changes in digital asset utility. Stablecoins evolved from crypto-native products into mainstream payment rails over five years.
Regulatory frameworks continue developing to accommodate enterprise adoption. Hibachi positions itself to capture this market shift through purpose-built infrastructure for always-on trading.
Crypto World
Trump-linked World Liberty Financial to launch forex remittance platform
World Liberty Financial, a cryptocurrency venture backed by the family of U.S. President Donald Trump, said on Thursday it plans to launch a new foreign exchange and remittance platform aimed at simplifying global money transfers and reducing associated fees.
Summary
- Trump-linked World Liberty Financial plans to launch a foreign exchange and remittance platform aimed at lowering the cost of cross-border money transfers.
- The platform, called World Swap, will connect users directly to bank accounts and debit cards and is built around the firm’s USD1 stablecoin.
- The expansion has drawn scrutiny from ethics experts due to the Trump family’s financial ties to the venture and its overlap with U.S. crypto policy.
World Liberty Financial plans World Swap FX platform
Speaking at the Consensus Web3 event in Hong Kong, co-founder Zak Folkman said the platform, named World Swap, will connect users directly to debit cards and bank accounts around the world, allowing foreign exchange and remittance transactions at costs significantly lower than those charged by traditional financial institutions.
“There’s over $7 trillion of money moving around the world from currency to currency, and all of this has been taxed very heavily by the incumbent players,” Folkman told the audience.
World Liberty Financial is building the service as part of its broader push into decentralized finance using its USD1 stablecoin, which the firm launched last year.
Folkman noted that the company’s lending platform, World Liberty Markets, has already facilitated $320 million in loans and more than $200 million in borrowings since its debut four weeks ago.
The planned platform represents a further expansion of World Liberty’s ambitions to carve out a role in the global payments and remittance ecosystem, a space dominated by legacy banks and money transfer services that often charge high fees and long settlement times.
World Liberty’s activities have generated substantial revenue for the Trump family business, known as the Trump Organization, particularly from foreign entities, according to earlier Reuters reporting. That growth has prompted scrutiny from government ethics experts, who say the timing, with Trump overseeing U.S. crypto policy, could pose potential conflicts of interest. The White House has denied that such conflicts exist.
The company did not say when World Swap will officially launch or provide detailed pricing, but the announcement signals its intent to challenge established players in the global remittance market.
Crypto World
Coinbase Posts $667 Million Quarterly Loss Amid Crypto Market Downturn
TLDR:
- Coinbase reported $667 million net loss in Q4, reversing $1.3 billion profit from year earlier
- Revenue declined 20% to $1.8 billion as falling crypto prices reduced trading activity broadly
- Diversification through derivatives, stock trading aims to reduce reliance on spot trading fees
- Pending stablecoin legislation threatens revenue-sharing arrangement with Circle’s USD Coin
Coinbase Global Inc. reported a substantial fourth-quarter net loss of $667 million, marking a sharp reversal from the $1.3 billion profit recorded during the same period last year.
The cryptocurrency exchange faced mounting pressure as declining digital asset prices reduced trading activity across the platform.
Quarterly revenue dropped 20% to $1.8 billion, falling short of analyst expectations. The loss stemmed primarily from unrealized write-downs on the company’s crypto holdings and investments.
Trading Volume Weakens Across Customer Segments
The exchange experienced decreased activity from both retail and institutional traders during the quarter. “Soft revenue with strong institutional and weak consumer,” said Dan Dolev, an analyst at Mizuho Securities.
Bitcoin’s nearly 50% decline from October highs pushed many retail investors to the sidelines. Transaction fees, traditionally a major revenue source, suffered as overall market participation waned. However, derivatives trading showed relative strength compared to spot markets.
Chief Financial Officer Alesia Haas addressed market conditions in an interview. “We definitely saw softer quarter-over-quarter market conditions,” Haas said.
“However, we outperformed the market on total trading volume.” That performance came primarily from derivatives activity.
Meanwhile, Dolev noted that “the 1Q run-rate fell below consensus expectations” and “EBITDA missed, which needs further investigation.”
Competitor platforms faced similar challenges during the same period. Gemini Space Station announced workforce reductions of up to 25% alongside international operation cutbacks.
Kraken experienced declining quarterly revenue and saw its CFO depart. Meanwhile, Robinhood Markets reported a 38% decrease in crypto trading revenue.
The widespread industry pullback mirrors previous market cycles that forced exchanges to implement cost-cutting measures rapidly.
Analysts remain divided on whether current conditions represent a temporary correction or a prolonged downturn. “Absent renewed euphoria and new volume highs, current conditions appear more consistent with a mid-cycle pullback than a full crypto winter,” Owen Lau of Clear Street wrote.
Conversely, research firm Kaiko labeled this period the “halfway point of the bear market.” The distinction matters for Coinbase’s strategic positioning and revenue stability.
Diversification Strategy Faces Test
The exchange has pursued multiple revenue streams beyond traditional spot trading in recent years. Management acquired Deribit, a crypto options platform, to expand derivatives offerings.
Additionally, the company launched stock trading services and prediction markets to attract different user bases. These initiatives aim to create more consistent income during volatile market periods.
“An overdependence on retail trading is not a future you want to have,” said Mark Palmer, an analyst at Benchmark Co.
Palmer explained the rationale behind diversification efforts. “Especially if the fees associated with trading begin to go in the direction of traditional brokerages, which is to say move towards zero over time,” he added.
The analyst maintains a buy rating on the stock. Stablecoin revenue sharing emerged as a crucial component of the diversification plan. Coinbase generates income through partnerships with Circle Internet Group, issuer of USD Coin.
Analysts view this revenue stream as higher margin and less dependent on trading volumes. The arrangement provides steadier cash flow compared to transaction-based fees.
However, potential regulatory changes threaten this revenue source. Draft legislation under consideration in Washington could restrict rewards tied to stablecoin balances. Such regulations would directly affect Coinbase’s Circle partnership.
CEO Brian Armstrong withdrew support for the proposed bill in January, though discussions continue between the company and policymakers. “We are sitting at the table, and we’ll stay at the table until we get a deal done,” Haas said.
The company participated in two White House meetings alongside the banking industry to negotiate a compromise. The outcome of these discussions could reshape a major revenue component for the exchange.
Market Position Remains Under Scrutiny
The current downturn tests whether Coinbase’s diversification efforts can truly buffer against crypto market volatility. Management maintains confidence that new business lines will protect during weaker trading periods.
“Retail is buying the dip,” Haas said. “I think what’s important is that retail investors are healthy.” The CFO’s comments suggest underlying strength despite broader market weakness.
The company’s stock declined nearly 37% year-to-date before edging higher in after-hours trading following the earnings announcement.
Mizuho Securities analyst Dan Dolev maintained a neutral rating on the shares. The results suggest Coinbase remains substantially exposed to cryptocurrency market cycles.
Nevertheless, the exchange maintains advantages over previous downturns through expanded product offerings and institutional relationships.
Whether these improvements prove sufficient to weather extended market weakness remains uncertain. The coming quarters will determine if diversification can genuinely smooth revenue volatility or merely soften the impact.
A short downturn would support management’s case that new revenue streams can buffer crypto’s inherent volatility. A longer freeze would expose the difficulty of fully separating exchange earnings from boom-and-bust cycles.
Crypto World
U.S. Federal Reserve urges new rules for crypto derivatives
Federal Reserve researchers have proposed treating cryptocurrencies as a separate asset class for derivatives margin rules, citing their unique risks and high volatility.
Summary
- Fed researchers suggest creating a dedicated crypto risk category in derivatives markets.
- The proposal separates stablecoins and floating cryptocurrencies for better risk modeling.
- The move aims to improve margin accuracy and reduce under-collateralization in OTC trades.
U.S. central bank researchers are calling for cryptocurrencies to be treated as a separate asset class in derivatives markets, arguing that digital assets carry risks that do not fit neatly into existing financial categories.
In a paper updated on Feb. 12, analysts examined how crypto-related risks are handled in over-the-counter derivatives. The study, titled “Initial Margin for Crypto Currencies Risks in Uncleared Markets,” focuses on how margin requirements are calculated under the framework used by the International Swaps and Derivatives Association.
Why crypto needs its own category
The researchers argue that the behavior of cryptocurrencies differs greatly from that of traditional assets like stocks, commodities, and foreign exchange. Market stress tends to show up more abruptly, prices move more quickly, and swings are bigger. These features make it harder to measure risk using existing models.
Because of this, the paper suggests creating a separate crypto risk class within the current margin system. The proposal suggests sorting digital assets into two broad categories.
The first would include pegged cryptocurrencies, such as stablecoins designed to mirror the value of traditional currencies. The second would cover floating cryptocurrencies, whose prices are determined entirely by market supply and demand.
This distinction is intended to acknowledge the different levels of risk involved. Stablecoins tend to fluctuate less, while unpegged tokens can swing sharply and without warning. According to the authors, applying the same margin framework to both groups can result in misjudged risk and poorly calibrated requirements.
The study also advises relying on long-term market data, including periods of severe financial stress, when assigning risk weights. While this mirrors established industry methods, it tailors them more closely to the specific behavior of crypto markets.
What this could mean for markets
If market participants adopt the proposal, margin requirements for crypto derivatives could become both stricter and more accurately aligned with underlying risk. In practical terms, traders and institutions might have to commit additional collateral, particularly for contracts linked to highly volatile assets.
Backers argue that this approach would lower the chances of under-collateralization, a situation in which trading losses exceed the margin posted. In stressed markets, that problem can spread quickly and threaten financial stability. A clearer framework could help limit those risks.
At the same time, the paper stresses that it is not a formal regulation. It represents research and analysis by Fed staff, not an official rule or policy decision. Any real changes would need to come through industry adoption or future regulatory action.
Still, the timing is notable. As crypto markets grow and become more connected to traditional finance, regulators and institutions are paying closer attention to risk management. More banks, funds, and trading firms are now involved in digital assets, making standardized rules more important.
By recognizing crypto as its own category, the researchers signal that digital assets have reached a level of maturity that demands tailored oversight. While the proposal does not change the rules today, it adds momentum to ongoing efforts to bring a clearer structure to crypto derivatives markets.
Crypto World
Zcash Draws Institutional Backing Amid Privacy Narrative and Technical Upgrades
TLDR:
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Zcash secured backing from Vitalik Buterin and Winklevoss twins who deployed $50M and lab donations.
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Project Tachyon uses recursive zero-knowledge proofs to enable thousands of shielded transactions per second.
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The shielded pool reached 5,030,093 ZEC representing 30% of total supply at all-time high adoption levels.
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ZEC trades at $220-250 after 69% correction from $758 peak as community debates critical governance proposals.
Zcash continues to attract institutional attention as privacy becomes a focal narrative in cryptocurrency markets. The digital asset recently received backing from Vitalik Buterin and the Winklevoss twins.
ZEC trades between $220-250 after a 69% correction from its November 2025 peak of $758. The shielded pool reached an all-time high of 5,030,093 ZEC, representing 30% of total supply.
Community governance proposals including Project Tachyon are under consideration as the network evaluates technical upgrades.
Institutional Validation and Strategic Backing
Vitalik Buterin made his second donation to Shielded Labs on February 6, 2026, specifically supporting the Crosslink upgrade.
The Ethereum co-founder stated that Zcash remains one of the most honorable crypto projects with a steadfast focus on privacy.
Shielded Labs’ Crosslink work aims to enhance security while reducing the security budget for long-term sustainability.
The Winklevoss twins restructured Cypherpunk Technologies, formerly Leap Therapeutics, into the first Digital Asset Treasury focused exclusively on Zcash.
They deployed $50 million to acquire ZEC and donated 3,221 ZEC valued at $1.2 million to Shielded Labs. Tyler Winklevoss emphasized that privacy remains crucial for a free and open society.
Grayscale maintains its Zcash Trust (ZCSH) as the only institutional product offering pure ZEC exposure. The trust has operated through multiple market cycles.
These institutional moves validate Zcash’s position in the privacy sector as regulatory scrutiny on transparent blockchains intensifies.
Technical Upgrades and Project Tachyon
Project Tachyon represents a complete architectural redesign of how privacy scales on the network. Sean Bowe, the cryptographer behind Halo and Sapling, leads this effort to solve fundamental bottlenecks in privacy coin adoption. Current systems require wallets to scan every transaction on the blockchain to identify relevant ones.
Tachyon uses Proof-Carrying Data and recursive zero-knowledge proofs to flip this model entirely. Wallets maintain their own cryptographic proof of solvency instead of scanning all network transactions.
The system enables oblivious synchronization where wallets sync in seconds rather than hours. This approach allows Zcash to scale to thousands of shielded transactions per second.
The upgrade targets mainnet deployment within a year. Benchmarks demonstrate the cryptographic primitives work as designed. Community funding supports the development effort.
The technology aims to enable planetary-scale encrypted money that works for billions of users with mobile-first accessibility.
Governance Decisions and Community Sentiment
The Zcash Coinholder Protocol Feature Sentiment Poll addresses 11 questions shaping the network’s future direction.
Key proposals include Project Tachyon, Network Sustainability Mechanism fee removal, Zcash Shielded Assets, and Consensus Accounts. The community actively debates each proposal through established governance channels.
The Network Sustainability Mechanism proposes burning 60% of transaction fees to address long-term security funding.
ZIP 233, ZIP 234, and ZIP 235 introduce infrastructure to remove funds from circulation and smooth issuance curves. The mechanism extends the security budget timeline while maintaining the 21 million ZEC cap.
Zcash Shielded Assets would enable custom token issuance within the Orchard shielded pool. QEDIT developed ZIP 226 and ZIP 227 for the technical implementation.
However, some community members express concerns about protocol complexity and regulatory exposure. The governance process ensures thorough community review before implementation.
Market Conditions and Price Outlook
ZEC currently trades at $220-250 after declining from $758. The recent drop swept the October 17, 2025 low of $187, creating a potential liquidity grab.
Support zones exist at $220-250, $180-200, and $120. Resistance levels appear at $300-310, $380-420, and $540-560.
The Electric Coin Company development team resigned in January 2026 due to commercialization disagreements. The Zcash Foundation, Shielded Labs, and community contributors continue development work. This transition reduces reliance on a single organization for protocol advancement.
Dubai’s Financial Services Authority banned privacy coins from DIFC-regulated venues in January 2026. However, the SEC closed its investigation into the Zcash Foundation in late 2025 without action.
Zcash’s optional transparency through view keys and transparent addresses provides regulatory flexibility compared to fully anonymous alternatives.
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