Commodity-linked currencies remain under pressure as geopolitical tensions in the Middle East continue to escalate. The United States has maintained strikes on targets in Iran, while the Tehran-backed Houthis have intensified threats to shipping in the Red Sea and near key oil transit routes. Heightened geopolitical uncertainty has increased demand for traditional defensive assets, supporting the US dollar while weighing on risk-sensitive currencies such as the Australian dollar.

In the coming trading sessions, market participants will focus on Australia’s labour market report. Employment growth is expected to slow sharply, while the unemployment rate is forecast to remain unchanged at 4.4%. Weaker-than-expected figures could add pressure to AUD/USD by reinforcing expectations that the Reserve Bank of Australia may continue easing monetary policy.

For USD/CAD, attention will also turn to the weekly US crude oil inventory data. Although geopolitical developments continue to support oil prices, the outlook for commodity-linked currencies will depend not only on the direction of the energy market but also on incoming macroeconomic data and further developments in the Middle East.

AUD/USD

AUD/USD has begun to lose upside momentum after testing the key resistance zone between 0.7000 and 0.7030. On the daily chart, a doji candlestick has formed, suggesting the pair could resume its decline towards the 0.6920–0.6870 area. However, a decisive break and close above 0.7030 could open the way for a further advance towards 0.7080–0.7100.

Key events for AUD/USD:

• Tomorrow at 04:30 (GMT+3): Australia Employment Change
• Tomorrow at 04:30 (GMT+3): Australia Labour Force Participation Rate
• Tomorrow at 15:30 (GMT+3): US Initial Jobless Claims

USD/CAD

USD/CAD has formed a bullish engulfing candlestick pattern after rebounding sharply from the significant support level at 1.4000. The technical outlook suggests the pair could extend its recovery towards the 1.4170–1.4200 region if the pattern plays out. Conversely, a break below 1.4000 could expose the next downside target around 1.3900–1.3940.

Key events for USD/CAD:

• Today at 14:00 (GMT+3): US MBA Mortgage Applications Index
• Today at 17:30 (GMT+3): US Crude Oil Inventories
• Tomorrow at 15:30 (GMT+3): Canada Core Retail Sales

Overall, geopolitical tensions continue to underpin the US dollar while limiting the recovery of commodity-linked currencies. Over the coming days, the key drivers for AUD/USD and USD/CAD will be Australia’s labour market data, movements in oil prices, and further developments in the Middle East. If geopolitical risks remain elevated, the US dollar may continue to outperform. Conversely, easing tensions or weaker-than-expected US economic data could support a recovery in commodity-linked currencies.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Cardano-based wallet SecondFi is preparing to shut down after a security breach exposed issues around wallet security and left hundreds of users awaiting recovery options.

SecondFi said it will wind down SecondFi and Yoroi wallet services after attackers stole about 16.1 million ADA, worth roughly $2.6 million, due to a cryptographic flaw in its wallet software, according to an update published on Wednesday.

The platform said an independent investigation by blockchain intelligence provider Groom Lake identified a sophisticated external actor behind the attack and found indicators potentially linked to North Korea’s Lazarus Group, although no attribution has been confirmed. It added that the breach affected 374 wallets.

The update came nearly a month after SecondFi first disclosed the exploit in late June, with affected users still waiting for recovery tools and migration options that the company says are now targeted for release in August.

SecondFi plans recovery tools as users await next steps

SecondFi said it is developing a recovery tool based on zero-knowledge proofs to help exploited users recover assets while limiting the information they need to share.

The tool is still undergoing testing and will be reviewed by a third-party auditor before its planned release in August.

The platform is also preparing wallet export functionality that will allow users to migrate assets to another service. SecondFi did not announce a direct reimbursement plan or say whether it would compensate users from its own funds.

Users question recovery timeline as SecondFi winds down

SecondFi’s latest update has drawn frustration from some users who say they are still waiting for a clear path to recover or migrate their assets after the exploit.

Earlier guidance from the platform advised affected users not to restore recovery phrases into new Cardano wallets, saying that moving funds elsewhere “does not mitigate the risk” while SecondFi investigated the incident.

On June 27, SecondFi said it had identified a recovery path and expected to begin the process within about two weeks after completing testing and security reviews. Nearly a month later, the company said the recovery tool is still under development and is now expected to launch in August.

Related: Allbridge pauses cross-chain bridge after $1.65M exploit

“But many of us were told our funds could be recovered within two weeks. Now we’re being asked to wait even longer,” one user wrote in response to SecondFi’s Wednesday update.

Cointelegraph contacted SecondFi for details on potential reimbursement plans but did not receive a response by publication time. EMURGO also did not respond to earlier requests for comment.

Magazine: Binance & OKX users face $1,900 fines in Vietnam, Coinbase in China? Asia Express

A decentralized exchange (DEX) backed by Robinhood is moving deeper into tokenized traditional assets, launching tokenized stock trading and perpetual futures on Robinhood Chain. Arcus—built by the team behind decentralized trading venue dYdX—rolled out the new products on Tuesday, according to an announcement shared with Cointelegraph.

The expansion follows Arcus’s earlier spot market launch after Robinhood Chain went live on July 1. With the latest release, the platform now supports tokenized stocks alongside perpetuals tied to equities and other underlying categories, using a self-custodial setup designed to keep users in control of their assets.

Key takeaways

• Arcus launched tokenized stocks and perpetual futures on Robinhood Chain, expanding beyond spot trading on the new chain.
• The platform says it operates with self-custody, allowing users to connect existing wallets rather than depositing assets on a centralized venue.
• Paxos-issued USDG is presented as the primary collateral and settlement asset for trading on Arcus.
• Arcus states its stock tokens are restricted in the US, Canada, the UK, and other jurisdictions, underscoring ongoing regulatory complexity for onchain securities.
• The move adds to competitive efforts among crypto-native platforms to build liquidity and trading infrastructure for tokenized real-world assets.

From spot markets to tokenized equities and derivatives

Arcus says its offering now includes more than 95 stock tokens, alongside perpetual markets spanning equities and a wider range of references, including exchange-traded funds, commodities, indexes, and crypto assets. Perpetuals allow traders to take positions without owning an underlying spot asset, typically using ongoing settlement mechanisms tied to an implied market price.

Earlier in the process, Arcus launched spot markets when Robinhood Chain became available on July 1. The new derivatives and tokenized stock functionality indicates Arcus is treating Robinhood Chain not just as a settlement layer for transfers, but as a foundation for a broader trading suite aimed at traditional market participants and crypto traders alike.

For users, that matters because liquidity and product breadth often determine whether tokenized assets become useful beyond hype cycles. Tokenized equities plus perpetuals can, in principle, create more routes to exposure—whether a trader wants an asset-like token representation or a derivative position referencing stock markets.

Self-custody and wallet infrastructure at the center

Arcus is presenting its platform as self-custodial. Instead of requiring users to deposit assets into a custodial account run by a centralized exchange, users maintain control of their holdings through connected wallets.

To support onboarding and wallet operations, Arcus uses Privy, a wallet infrastructure provider. The system enables sign-up through email or social logins, while the platform also supports connections to existing self-custodial wallets, including MetaMask, Ledger, and WalletConnect. Arcus also said it plans to support additional Ethereum-compatible wallets.

In practical terms, self-custody can be attractive during periods when users are sensitive to counterparty risk. But it also shifts more responsibility to the user to manage wallets securely—especially when trading products include derivatives where position management and margin-like collateral behavior are central.

Collateral and settlement: USDG as the key building block

Arcus’s trading engine relies on stablecoin collateral and settlement, naming Paxos-issued USDG as its primary collateral and settlement asset.

Stablecoin choice is frequently a behind-the-scenes decision that affects user experience and liquidity flows. Using a single primary settlement asset can simplify integrations and reduce fragmentation—though the wider effectiveness still depends on how well that stablecoin is integrated across custody, trading, and onchain routing.

Regulatory gaps remain: tokenized stocks are restricted

Despite the expansion into tokenized stocks, Arcus says its stock tokens are unavailable in the US, Canada, the UK, and other restricted jurisdictions. The company’s approach highlights a core tension in tokenized securities: the technology can be deployed quickly, but the ability to distribute or trade certain representations of securities depends on local regulatory interpretations.

Cointelegraph reached out to Arcus for clarification on the restrictions but did not receive a response by publication time. Without additional detail, it remains unclear whether the limits are driven by issuer constraints, exchange and custody requirements, product structure classification, or other legal considerations.

Arcus’s geography-based restrictions also reinforce a broader pattern regulators in the US and the UK have been examining: how blockchain-based representations of traditional assets fit into existing financial frameworks. Questions commonly include custody and ownership, trading venue classification, and how market structure protections translate onto chain.

The launch also intensifies the competitive push among tokenization builders. Cointelegraph notes that platforms including Coinbase-backed Base are exploring ways to bring traditional financial products onchain, reflecting investor and developer interest in expanding beyond crypto-native assets into mainstream categories.

What to watch next for onchain tokenized markets

As Arcus adds derivatives and tokenized equities to Robinhood Chain, the biggest near-term questions are how quickly access expands beyond restricted jurisdictions and whether the product structure will align smoothly with evolving regulatory expectations. Traders and builders should watch for updates on supported regions, wallet and liquidity performance, and any changes to how collateral and settlement are handled as competition for onchain RWA infrastructure accelerates.

The kiwi has strengthened meaningfully against most peers this month. However, against the US dollar specifically, NZD/USD remains well below its 2026 highs, trading in the mid-0.58 area versus January’s peak near 0.6075.

New Zealand’s Q2 inflation data, released this week, blew past expectations: annual CPI accelerated to 4.1%, above both forecasts and the RBNZ’s own 3.9% projection, reinforcing the case for further tightening after the central bank’s surprise hike to 2.50% earlier in July—its first in over three years.

The dollar side of the equation remains the real wildcard. June’s payrolls report badly missed expectations, coming in at just 57,000, with prior months revised sharply lower, undercutting the Fed’s near-term tightening case despite still-sticky core inflation near 2.9%. Markets currently assign roughly even odds to a September hike, leaving NZD/USD’s next move hostage to next week’s Fed decision and any further escalation in Middle East tensions.

NZD/USD Technical Analysis

As the 4-hour chart shows, NZD/USD has arrived at a genuinely pivotal zone around 0.5850, a level that has repeatedly flipped between support and resistance throughout the year. Currently acting as resistance, this area has become the focal point of a tug-of-war that has now played out for several sessions.

Bullish Scenario

After bouncing from the medium-term support at 0.5600–0.5650, price staged a decisive recovery, breaking above the 200-period EMA and successfully retesting it as new support, all while forming a clear pattern of higher highs and higher lows. This strength has been reinforced by supportive central bank rhetoric and macro data favoring the kiwi. A confirmed break above 0.5850, coinciding with the 0.618 Fibonacci retracement of the late-June decline, would open the path toward the next resistance and psychological level at 0.6000.

Bearish Scenario

A rejection at this critical zone, however, would hand momentum back to sellers, sending price first toward a retest of the 200-period EMA near 0.5781. A break below that level would expose the well-defended 0.5600 support once again.

With the Fed decision looming and price sitting at such a decisive technical juncture, NZD/USD looks set for a significant move next week. Can the kiwi withstand the coming dollar volatility?

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Galaxy Digital has pledged up to $5 million in grants to open-source developers building post-quantum cryptography for Bitcoin.

The company also formed a quantum advisory council under its Bitcoin Quantum Readiness Initiative, which it announced Tuesday. The council includes Barry Sanders, professor and scientific director of Quantum City at the University of Calgary; Damien Bérubé, an MIT Sea Grant Knauss fellow; and Eran Tromer, professor of computer science at Boston University.

The grants will fund quantum-resistant upgrade proposals, post-quantum cryptography, Bitcoin signature schemes, wallet and custodian migration tooling and formal security audits.

Bitcoin’s quantum security is a growing concern, as about 30% of Bitcoin’s supply could be exposed if cryptographically relevant quantum computers emerge, according to analytics provider Glassnode. This includes 10% of the supply considered “structurally unsafe” because of its output type, and 20% considered “operationally unsafe” because of key or address management practices. 

Source: Glassnode

Community split over quantum breakthrough timeline

The timeline for a practical quantum computing breakthrough remains hotly debated.

In November 2025, Blockstream CEO Adam Back that Bitcoin faces no meaningful quantum threat for at least the next 20 to 40 years. Back said this gives the network ample time to adopt the post-quantum cryptography standards approved by the US Department of Commerce’s National Institute of Standards and Technology (NIST). 

In August 2024, NIST published three post-quantum cryptography standards for key establishment and digital signatures. The standards include key exchange, digital signature and hash-based signature algorithms that could underpin future post-quantum migrations across industries, including potential Bitcoin upgrades.

Related: Bernstein says Bitcoin market already priced in quantum risk 

In December 2025, Blockstream Research released a paper proposing a hash-based signature scheme as a “promising path for securing Bitcoin in a post-quantum world.” The proposal would replace Bitcoin’s ECDSA and Schnorr signatures with a scheme whose security relies solely on cryptographic hash functions.

Wealth management company Bernstein said in an April report that Bitcoin has about three to five years to prepare for a post-quantum security upgrade. 

Magazine: Bitcoin’s quantum upgrade path: What BIP-360 changes and what it does not

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Balance Coin, a low-circulation algorithmic stablecoin meant to hold a dollar peg, crashed more than 99% on Wednesday after an attacker exploited a pricing flaw in the protocol behind it, blockchain data shows.

The token, which traded near its $1 peg a day earlier, fell to about $0.0014, erasing nearly all of its roughly $3.5 million in nominal value.

The attacker’s actual profit was smaller, around $912,000, drained from 42DAO, the governance entity behind Balance Protocol. The project runs a system where users lock bitcoin-backed collateral to mint the stablecoin, and vaults are liquidated if the collateral’s value drops too far.

Security firm SlowMist said the attacker manipulated the protocol’s oracle – the external price feed it relies on – to write an abnormally low bitcoin price into the system.

The lending contract then accepted that price without checking it against an accurate range and without any liquidation delay, letting the attacker instantly liquidate multiple vaults that should never have been eligible, then swap the seized collateral for profit.

The exploit lands amid growing scrutiny of DeFi security as AI systems grow more capable, including an instance from late Tuesday in which OpenAI models broke out of their own testing environment and compromised the servers of AI firm Hugging Face during a controlled evaluation.

The Digital Chamber has challenged Illinois’ new 0.2% digital asset transaction tax in court, arguing that the law unfairly targets blockchain-based commerce and violates constitutional protections.

According to a complaint filed Tuesday in an Illinois circuit court, crypto trade association The Digital Chamber (TDC) is seeking to block the state’s Digital Asset Tax Act before it takes effect on Jan. 1, 2027. 

The organization argues that Illinois has singled out digital assets by imposing a transaction tax based on the technology used to record and transfer ownership rather than on the underlying economic activity.

🧵1/ Today we filed suit in Sangamon County, IL, to stop the Digital Asset Tax Act. No one should be taxed differently because of how ownership of digital assets is recorded or transferred. pic.twitter.com/pv3J3FPybM

— The Digital Chamber (@DigitalChamber) July 21, 2026

The lawsuit asks the court to declare the law “void and unenforceable,” contending that it violates the U.S. Constitution and should not be allowed to move forward.

Trade group challenges technology-specific tax

In a statement accompanying the filing, The Digital Chamber CEO Cody Carbone said the organization is not asking for favorable treatment but for equal treatment under the law.

Carbone said taxes should be designed with fairness in mind alongside revenue generation, adding that the crypto tax provision was inserted into legislation the night before lawmakers gave the budget final approval. He said the organization filed the case to protect consumers and its members from what it described as an unfair tax.

The 32-page complaint argues that economically identical transactions should not receive different tax treatment simply because ownership is recorded or transferred through blockchain technology. According to the filing, taxing digital assets differently from other financial assets creates an unequal legal framework.

The organization also warned that allowing Illinois to proceed could encourage similar policies elsewhere. In its complaint, TDC argued that if states are permitted to impose additional taxes because commerce occurs through blockchain infrastructure, future lawmakers could extend similar treatment to transactions settled using artificial intelligence systems, cloud-based payment networks, or other emerging technologies while leaving equivalent transactions conducted through older systems untaxed.

TDC’s membership includes more than 250 companies and organizations worldwide, including Anchorage Digital, Chainlink Labs, and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange.

Industry opposition has continued since budget approval

The lawsuit follows months of criticism after Illinois lawmakers approved the Digital Asset Tax Act as part of the state’s $55.9 billion fiscal 2027 budget, which Governor JB Pritzker signed into law in June. State budget documents previously estimated the measure could generate roughly $60 million in annual revenue.

The law introduces a 0.2% tax on covered digital asset activity carried out by brokers, including exchange, transfer, custody, and wallet services. Unlike traditional capital gains taxes, several industry groups have argued that the Illinois measure applies to the transaction itself rather than to income or profits generated from digital assets.

Before the budget became law, The Digital Chamber and the Illinois Blockchain Association jointly urged state officials to remove the proposal, saying lawmakers introduced the provision without advance notice during the budget process instead of advancing it through standalone legislation.

Separately, the Crypto Council for Innovation requested that Governor Pritzker use a line-item veto to remove the crypto tax provision before signing the budget. The organization argued that the measure targets blockchain technology itself and compared the approach to taxing correspondence because it is delivered through email instead of traditional mail.

Miles Jennings, head of policy and general counsel at a16z Crypto, also criticized the legislation after its passage, saying no comparable state financial transaction tax exists for stocks, bonds, or derivatives in the United States.

Compliance questions remain before 2027 launch

While the lawsuit focuses on the legality of the tax, implementation questions have continued to draw attention across the industry.

According to tax advisory firm BDO, the law requires digital asset brokers to register with the Illinois Department of Revenue before conducting covered activity once the rules take effect on Jan. 1, 2027. Brokers must collect the tax as a separate line item, maintain transaction records, and submit monthly reports covering the previous month’s activity.

BDO has also said the law may apply to companies located outside Illinois if they generate at least $100,000 in annual receipts from customers in the state. Customer records, mailing addresses, IP addresses, account information, and other location data may all be used to determine whether activity falls under Illinois sourcing rules.

Legal uncertainty has also emerged around routine blockchain activity. After the legislation passed, litigator Joe Carlasare questioned how ordinary wallet transfers would be treated, asking whether moving Bitcoin from self-custody to an exchange before selling it could create one taxable event or multiple taxable transactions.

Federal officials have also criticized the measure

The court challenge comes weeks after Commodity Futures Trading Commission Chair Michael Selig publicly criticized the Illinois tax.

In a July statement, Selig said Illinois lawmakers had “slammed the brakes on technological progress” by approving the measure. He argued that blockchain networks could transform the movement of financial assets in much the same way the internet transformed the movement of information, warning that taxing crypto transfers differently from other financial activity could leave businesses and residents at a disadvantage.

Selig also said Illinois had moved ahead while federal lawmakers continue debating national digital asset market structure and tax policy. Congress is reviewing several crypto-related tax proposals covering areas including stablecoin payments, staking rewards, mining income, decentralized finance lending, wash-sale rules, charitable donations, and taxpayer disclosure requirements, while the Securities and Exchange Commission and the CFTC are conducting a joint review of crypto market regulations.

Against that backdrop, The Digital Chamber’s lawsuit moves the dispute from policy debate to the courts. If successful, the case could determine whether Illinois can enforce a technology-specific transaction tax before the law is scheduled to take effect at the beginning of 2027.