Inflows into Hyperliquid (HYPE) exchange-traded funds (ETFs) have largely ground to a halt after surging in May and June, reflecting growing concerns over the protocol’s competitive outlook, according to Wall Street bank JPMorgan (JPM).

The bank said Hyperliquid ETFs led non-bitcoin crypto funds in inflows relative to assets under management in May and June, though that momentum faded in July and early August.

“We see significant challenges to the market share of decentralized platforms such as Hyperliquid,” analysts led by Nikolaos Panigirtzoglou said in a Thursday report.

Hyperliquid has been one of crypto’s biggest breakout stories this year, with its HYPE token surging as traders flocked to the protocol’s decentralized perpetual futures exchange.

The rapid growth has turned Hyperliquid into one of the largest crypto ecosystems outside bitcoin and ether, attracting institutional capital, corporate treasury buyers and ETF issuers.

According to JPMorgan analysts, the cooling demand comes as decentralized derivatives platforms face mounting competition from regulated centralized exchanges.

The report said the rollout of U.S.-regulated crypto perpetual futures products could shift trading activity away from offshore decentralized venues such as Hyperliquid, which remain exposed to concerns around licensing, compliance and investor protections.

Crypto’s security threat is no longer confined to hacked exchanges, phishing links, or compromised custody. According to a report released this week by blockchain analytics firm Chainalysis, criminals carried out more than $30 million in thefts through “wrench attacks” in the first half of the year—an alarming category of violent crimes that targets crypto holders using threats, coercion, kidnappings, and home invasions.

Chainalysis documented 46 violent crypto-related incidents globally through late June, up from 40 in the same period of 2025. If the pace holds, the year would exceed the $58 million record reported stolen via these physical attacks in 2025.

Key takeaways

• Chainalysis tracked 46 “wrench attacks” worldwide through late June, rising from 40 during the same period in 2025.
• Despite the violence, attacker “success” remains relatively low: only 12 of the 46 incidents resulted in payment (about 26%).
• France is the clear hotspot, with 30 publicly known incidents by midyear versus 19 throughout all of 2025; authorities reportedly recorded more than 70.
• Chainalysis links the increase to suspected data leaks and targeted selection of victims, not random violence.
• Some attackers appear operationally sophisticated—moving funds through exchanges, bridges, decentralized platforms, and laundering services—suggesting ties to broader criminal networks.

What Chainalysis calls “wrench attacks”

In Chainalysis’s terminology, wrench attacks are physical coercion attempts used to force victims to hand over crypto. The report highlights scenarios including kidnappings, home invasions, and hostage situations. While these crimes are often described in sensational terms, Chainalysis frames them as a structured threat model: victims are selected in advance, and the violence is used to extract access or payments.

The report underscores a key tension for investors, traders, and everyday holders: the risk extends well beyond software security and custody choices. Even people who hold funds safely—offline or with reputable custody solutions—could still be targeted if criminals believe they can force them to act under duress.

Chainalysis also cautioned that the totals likely understate the real problem. The firm noted that many attacks go unreported, meaning public documentation can lag behind actual victimization.

Fewer payments than last year, but the volume is rising

Although the number of violent incidents is increasing, Chainalysis reports that outcomes are not as consistently successful as the headlines might suggest. Of the 46 incidents recorded, only 12 resulted in a payment, producing a 26% success rate.

That rate is down significantly from 49% in 2025, when nearly half of documented attempts resulted in payments. For readers, this matters because it suggests attackers are facing more resistance—or, alternatively, that they are running larger operations with a higher proportion of failed attempts. In either case, a lower success rate does not necessarily mean the threat is shrinking; it can simply mean criminals are conducting more operations to reach the same or greater totals.

Chainalysis described the modus operandi as uneven in capability: “tradecraft tends to be amateur at the point of violence, but professional at both ends.” In other words, criminals may not execute the coercion with high technical skill, but the processes before and after the violence—such as identifying targets and monetizing stolen funds—can be more refined.

France emerges as the main battleground

The most striking geographic detail in the Chainalysis report is France’s concentration of documented incidents. The firm says France recorded 30 publicly known wrench attacks by midyear, compared with 19 incidents reported during all of 2025.

Chainalysis further notes that French authorities have counted more than 70 incidents overall. That gap implies that public figures represent only a portion of what investigators and officials are tracking, again reinforcing the likelihood that reported totals undercount the true scale.

The report also aligns with official comments earlier in the year. In July, France’s Interior Minister Laurent Nuñez put the first-half count at 77 kidnappings, extortions, or attempted extortions—rising from 45 across all of 2025. According to that reporting, France has introduced a rapid-alert and protection system and promised enhanced intelligence-sharing and coordination with the crypto industry.

Data leaks, suspected tax-record misuse, and how criminals move money

Chainalysis attributes the surge in France largely to suspected misuse of French tax records. The report states that a French tax official allegedly accessed and sold information about crypto investors to criminals. Chainalysis also references a separate breach at crypto tax-reporting company Waltio, which was reportedly linked to exposure of data for about 50,000 users.

For holders, the implication is direct: wrench attacks appear to rely on victim identification rather than luck. If criminals can pinpoint which individuals likely hold valuable crypto and when they might be vulnerable, the physical attack becomes more targeted—and potentially more scalable.

The report also describes how stolen funds may be handled differently depending on the sophistication of the perpetrators. In some cases, attackers allegedly sent funds straight to centralized exchanges. Other cases involved the use of bridges, decentralized exchanges, and laundering services. Chainalysis said the most advanced incidents showed links to broader criminal networks, suggesting that the people carrying out violence may not be the same actors responsible for the entire financial operation.

That split matters for prevention: it suggests that public safety measures alone may not be sufficient. A credible response likely needs both improved physical protection for potential victims and stronger controls around data access—especially in areas where personal financial information can be accessed or exported improperly.

As this threat evolves, readers should watch whether the reported incident counts continue to rise in France and whether success rates remain suppressed or begin to climb again. Chainalysis’s findings also point to a key indicator for future risk: the extent to which leaked or misused financial data continues to supply criminals with targets.

Introduction

For centuries, money has served a simple purpose: it stores value, facilitates trade, and acts as a unit of account. Whether in the form of coins, paper bills, or digital bank balances, money has traditionally remained passive. It waits for humans to decide when, where, and how it should be used.

Blockchain technology is changing that assumption.

The emergence of programmable capital transforms money from a static asset into an intelligent financial tool capable of executing predefined rules automatically. Instead of relying on banks, intermediaries, or manual approvals, programmable capital allows digital assets to move, invest, distribute, or lock themselves according to transparent code.

This innovation is rapidly becoming one of the foundational building blocks of decentralized finance (DeFi), tokenized assets, digital commerce, and the future internet economy.

What Is Programmable Capital?

Programmable capital refers to digital assets that can automatically perform financial actions based on predefined conditions encoded in smart contracts.

Unlike traditional money, programmable capital can:

• Release payments automatically
• Distribute revenue instantly
• Enforce financial agreements
• Trigger investments
• Pay royalties
• Lock or unlock funds
• Manage collateral
• Execute trades

—all without requiring manual intervention.

In simple terms:

Traditional money waits for instructions. Programmable capital already knows what to do.

The Technology Behind It

Programmable capital is made possible through smart contracts.

A smart contract is software deployed on a blockchain that automatically executes when predefined conditions are met.

For example:

“If Product A is delivered…”

→ Release payment.

“If staking rewards reach 100 tokens…”

→ Automatically compound rewards.

“If a loan becomes undercollateralized…”

→ Liquidate collateral.

No human approval is needed once the contract has been deployed.

The blockchain guarantees that the code executes exactly as written.

Why Programmable Capital Matters

The traditional financial system depends heavily on intermediaries.

Banks verify transfers.

Lawyers enforce agreements.

Accountants calculate distributions.

Payment processors settle transactions.

These layers increase:

• Cost
• Time
• Complexity
• Operational risk

Programmable capital removes much of this friction by embedding financial logic directly into the asset itself.

Money becomes capable of enforcing its own rules.

Real-World Examples

1. Payroll Automation

Imagine an international company with employees across 30 countries.

Instead of manually processing salaries every month, programmable capital could:

• Verify employment status
• Calculate tax deductions
• Convert currencies
• Send salaries automatically
• Record transactions on-chain

Payroll becomes instant and transparent.

2. Streaming Payments

Instead of paying freelancers after completing an entire project, programmable capital can stream earnings continuously.

For every second worked:

• Funds are released automatically.

No invoices.

No waiting periods.

No delayed payments.

3. Automated Royalties

Artists, musicians, writers, and game developers often rely on royalty collection agencies.

Programmable capital enables royalties to be distributed automatically whenever digital content is sold or used.

Revenue instantly reaches:

• Creator
• Collaborators
• Publishers
• Investors

Each party receives their predefined percentage without disputes.

4. Decentralized Lending

In DeFi lending protocols:

Users deposit collateral.

Borrowers receive loans.

Interest accumulates automatically.

If collateral falls below safety thresholds:

Smart contracts initiate liquidation instantly.

No bank employee makes the decision.

The protocol operates autonomously.

5. Revenue Sharing

Businesses can tokenize their revenue streams.

Every time profits arrive:

Smart contracts automatically distribute income among:

• Investors
• Founders
• Treasury
• Community
• Liquidity providers

Distribution becomes transparent and verifiable.

Programmable Capital in DeFi

DeFi is perhaps the best example of programmable capital in action.

Every major DeFi application relies on automated financial logic.

Examples include:

Lending

Funds earn interest automatically.

Staking

Rewards are calculated and distributed continuously.

Automated Market Makers (AMMs)

Liquidity pools price assets without centralized exchanges.

Yield Farming

Rewards follow mathematical formulas encoded in smart contracts.

Stablecoins

Supply expands or contracts based on protocol rules.

Everything operates through programmable financial infrastructure.

Benefits of Programmable Capital

Greater Efficiency

Transactions occur automatically.

No paperwork.

No manual processing.

No unnecessary delays.

Lower Costs

Removing intermediaries significantly reduces transaction fees and administrative expenses.

Businesses save both time and money.

Transparency

Every transaction is publicly verifiable on-chain.

Rules cannot be secretly changed after deployment.

Global Accessibility

Anyone with an internet connection and a compatible wallet can interact with programmable capital.

Geography becomes far less relevant.

24/7 Operation

Traditional financial institutions close after business hours.

Programmable capital never sleeps.

Transactions execute around the clock, every day of the year.

Challenges and Risks

Despite its advantages, programmable capital is still evolving.

Smart Contract Bugs

Code errors may lead to financial losses if contracts are poorly audited.

Regulatory Uncertainty

Governments worldwide are still determining how programmable financial assets should be regulated.

Future policies may shape adoption.

Oracle Dependency

Many smart contracts depend on external data feeds.

If an oracle provides inaccurate information, contracts may execute incorrectly.

User Experience

Managing wallets, private keys, and blockchain transactions remains difficult for many newcomers.

Improved interfaces will be essential for mass adoption.

Industries That Could Be Transformed

Programmable capital extends well beyond cryptocurrency.

Potential applications include:

• Real estate settlements
• Insurance claims
• Supply chain finance
• Healthcare reimbursements
• Subscription services
• Government aid distribution
• Corporate treasury management
• Carbon credit markets
• Cross-border trade
• Gaming economies

Any financial workflow based on predefined rules can potentially become programmable.

The Future of Money

As tokenization expands and real-world assets move on-chain, programmable capital will become increasingly common.

Imagine a future where:

• Mortgages adjust automatically to interest rate changes.
• Investments rebalance themselves according to market conditions.
• Businesses distribute dividends instantly.
• Insurance claims settle within minutes.
• Supply chain payments execute immediately after delivery confirmation.
• Autonomous AI agents manage portfolios using programmable financial rules.

Money evolves from being merely digital to becoming intelligent.

Conclusion

Programmable capital represents one of the most significant innovations enabled by blockchain technology. By embedding logic directly into digital assets, it allows money to move, invest, distribute, and enforce agreements automatically without relying on traditional intermediaries.

While challenges around security, regulation, and usability remain, the potential benefits—greater efficiency, transparency, lower costs, and global accessibility—are driving rapid adoption across decentralized finance and beyond.

As blockchain infrastructure matures, programmable capital is poised to reshape how individuals, businesses, and governments interact with value. In the years ahead, the question may no longer be whether money can be programmed—but how much of the global economy will eventually run on it.

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JPYC Inc. raised 6 billion yen ($38 million) in an extension of its Series B funding round to accelerate the expansion of its yen-pegged stablecoin.

The investment brings the company’s total raised to $106 million across seven funding rounds since November 2021, according to venture capital data site Tracxn.

New investors in the latest round include AZ-COM Maruwa Holdings (9090), a major Japanese logistics company.

AZ-COM plans to settle payments in JPYC with its clients, including Amazon Japan. Its network of around 2,300 partners is made up of subcontractors, drivers and so on. The move marked the first large-scale corporate use of a stablecoin for daily business operations in Japan.

JPYC is one of the most prominent stablecoins pegged to the Japanese yen with a market cap of $55.5 million, according to data tracked by CoinGecko.

Stablecoins are digital tokens pegged to the value of a traditional financial asset, usually a fiat currency. The market is overwhelmingly dominated by tokens pegged to the U.S. dollar. The yen stablecoin sector is growing, helped by adoption among some of Japan’s largest financial institutions, but remains negligible in the context of the USD-dominated market.

Sandisk (SNDK) and Western Digital (WDC), two of the biggest beneficiaries of the AI storage boom, were both 10% lower in pre-market trading Thursday, despite reporting strong quarterly results.

Sandisk posted record fourth-quarter revenue of $8.97 billion and non-GAAP EPS of $39.25, comfortably beating expectations. Western Digital also delivered a double beat, reporting revenue of $3.75 billion, up 44% year over year, while its gross margin surged to 54.4%. Despite those results, both stocks are now trading roughly 50% below their all-time highs.

The problem was guidance. Sandisk’s first-quarter outlook came in below expectations, with projected revenue of $10.7 billion versus the $11.2 billion analysts had estimated. Its EPS guidance also fell short. Western Digital’s first-quarter outlook was solid, but after a 500% run, investors were looking for another blowout beat.

Sandisk and Western Digital have gained more than 3,000% and 550%, respectively, over the past 12 months, propelled by the AI boom and leaving assets such as crypto and precious metals in the rearview mirror.

In addition, Sandisk’s board of directors has also approved an additional $14 billion share buyback program, bringing the total authorization to $15.5 billion.