The long-term value of decentralized finance (DeFi) depends on its ability to transform the back-office operations of global banking institutions rather than providing alternative trading environments, according to asset management and banking executives.

Speaking on a panel at the Proof of Talk conference in Paris, the executives said legacy financial institutions are eager to adopt blockchain technology, but that’s unlikely to occur given the weaknesses in onchain security, especially in bridges that link different blockchains.

In April, breaches were reported in 27 out of 30 days, prompting CertiK CEO Ronghui Gu to describe it as DeFi’s worst month in four years. Drift Protocol and Kelp Dao alone were hacked by North Korean cybercriminals in exploits that drained nearly $600 million from the two lenders.

“I don’t think you see a growth in DeFi until we fix the first problem … which is the hacks,” said Maja Vujinovic, CEO of investment and advisory firm OGroup. “I think it’s an absolute problem until we solve the bridges. I don’t think that DeFi grows outside of the DeFi degen community … until they fix probably a whole stack.”

Her comment echoed Ben Nadereski, co-founder and CEO at Solstice, a Solana-based DeFi yield protocol, who told CoinDesk in an interview that DeFi’s growth is being held back by the onslaught of exploits, a flaw he blamed on developers frequently building innovative code while not paying enough attention to the core responsibilities of managing capital.

Working on a fix

Stéphanie Cabossioras, chief strategy and global policy officer of Societe Generale Forge, said traditional banks are already working to fix these structural gaps.

She pointed to the company’s record of tokenizing structured products and green bonds on public blockchains. To make those digital assets work, she said SG-Forge had to fix the cash settlement layer by developing its own regulated stablecoins, such as EURCV and USDCV.

“At the end of the day, we were stuck because there was only the securities leg on the blockchain, and we had no cash leg on the blockchain,” Cabossioras said. “That’s why we started to issue a stablecoin.”

Institutional clients, Cabossioras said, prefer the safety of a regulated bank over open-source, non-custodial DeFi protocols.

“In everyday life, anybody — individual, medium, or large enterprise — we want to have a trusted party,” Cabossioras stated. “We don’t want to keep our assets in our private wallets, in our safes at home. We want to delegate this peace of mind to a third party. And that’s why custodians or banks still have a future.”

The US dollar is holding on to its recently gained ground following a series of strong macroeconomic releases and a rise in US Treasury yields. Additional support for the greenback comes from resilient inflation readings, expectations that the Federal Reserve will maintain a restrictive policy stance, and cautious investor sentiment ahead of the release of the preliminary ADP employment report. At the same time, market participants continue to monitor oil price dynamics and other economic indicators that could alter perceptions of the health of the US economy.

Despite continued demand for the dollar, the next directional move remains uncertain. Both USD/JPY and USD/CAD have reached important technical resistance levels, where either profit-taking and a local correction may emerge, or a fresh bullish impulse could develop if US labour market data come in stronger than expected.

USD/JPY

USD/JPY continues its upward move and has approached a strategic resistance zone near the highs of recent months. Following the recovery from April lows, buyers have almost fully reversed the previous decline; however, price has now entered an area where selling pressure has previously intensified.

Technical analysis of USD/JPY suggests the possibility of a test of the nearest resistance levels at 160.40–160.70. Should the pair establish itself below the 159.30–159.60 range, a broader downward correction may begin.

Key events for USD/JPY:

• today at 11:30 (GMT+3): speech by Bank of Japan Governor Kazuo Ueda;
• today at 15:15 (GMT+3): US ADP Non-Farm Employment Change;
• today at 16:00 (GMT+3): speech by Federal Reserve Vice Chair for Supervision Michael S. Barr.

USD/CAD

USD/CAD has recovered following a corrective decline towards 1.3770. Technical analysis of USD/CAD points to the possibility of a renewed test of the 1.3850–1.3870 area, as a series of bullish candlestick formations has developed on the daily timeframe. The bullish scenario would come into question if the pair were to establish itself decisively below 1.3770.

Key events for USD/CAD:

• today at 15:30 (GMT+3): Canadian labour productivity data;
• today at 17:00 (GMT+3): US ISM Services Purchasing Managers’ Index (PMI);
• today at 17:30 (GMT+3): US crude oil inventories.

Key takeaways

The dollar retains an advantage ahead of the release of preliminary US employment data; however, both USD/JPY and USD/CAD are already trading close to important technical resistance levels. The next directional move will depend on whether the incoming data can confirm the resilience of the US economy. Strong figures could provide the basis for a continuation of dollar strength and a test of fresh highs, while weaker-than-expected results may trigger a correction following the recent appreciation of the US currency.

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Key Takeaways

• British parliamentary report identifies Palantir dependency as an “unacceptable point of weakness” for national security
• Lawmakers highlight the £330 million ($444 million) NHS data platform agreement as creating dangerous vendor dependency
• Report references Peter Thiel’s political connections and Palantir’s defense sector involvement as incompatible with British principles
• Parliamentary committee recommends activating the 2027 contract exit provision and pursuing domestic alternatives
• Palantir’s British leadership dismissed cancellation calls as “frankly irresponsible”

British lawmakers have issued a sharp rebuke of Palantir’s expanding presence in UK government operations, expressing alarm that reliance on the American data analytics company creates vulnerabilities around sensitive public information.

Palantir Technologies Inc., PLTR

On Wednesday, the Commons Science, Innovation and Technology Committee released a comprehensive 70-page assessment that highlighted Palantir as a concerning case study of excessive dependence on a limited group of American technology vendors. The assessment characterized this dependency as an “unacceptable point of weakness.”

Shares of Palantir (PLTR) drew attention after the parliamentary report emerged, as market participants monitored potential implications from mounting political opposition in a strategically important overseas market.

Central to the committee’s concerns is Palantir’s seven-year National Health Service arrangement valued at £330 million. Secured in 2023, the agreement aims to consolidate healthcare information from throughout the NHS into a unified system enabling medical professionals to make more informed, timely decisions.

According to NHS officials, the partnership has produced “huge benefits for patients,” including accelerated cancer identification and the treatment of thousands of additional patients monthly.

Lawmakers Push for 2027 Contract Termination

Despite these reported advantages, the parliamentary committee is pressing the government to invoke a contractual exit provision available in 2027. The recommendation includes transitioning to a British-based solution or developing an internal capability.

Beyond technical considerations, MPs expressed concerns about aspects of Palantir’s profile and leadership. The assessment referenced co-founder Peter Thiel’s relationships with Donald Trump and his previous critiques of public healthcare systems. Additionally, the report noted Palantir’s contracts providing technology to American defense and immigration enforcement agencies.

The committee concluded these factors constitute a “clear mismatch with UK values” and cautioned that Britain’s digital modernization objectives could be “derailed at any time by a decision taken outside our shores.”

Committee chair Dame Chi Onwurah stated the UK faces serious exposure and advocated for technological independence in essential public service domains.

Company Defends NHS Partnership

Louis Mosley, Palantir’s UK chief executive, responded swiftly to the criticism. In a BBC radio interview, he noted the committee itself had recognized the NHS contract’s positive performance, making termination calls “frankly irresponsible.”

Mosley emphasized that Palantir secured the agreement through a transparent, competitive procurement procedure, and that NHS data governance remains entirely with the health service.

Foxglove, a British advocacy organization that has actively opposed Palantir’s NHS participation, praised the parliamentary findings and urged complete contract termination.

The committee’s assessment also criticized broader government digital initiatives, characterizing the administration’s £45 billion annual savings target through digitalization as “worryingly optimistic.”

Additional recommendations included designating a cabinet-level minister specifically responsible for overseeing digital transformation efforts.

The UK government’s Department of Health and Social Care had not issued a statement in response to the report at press time.

Mastercard has expanded its payment network to support stablecoin settlements across multiple blockchains and beyond traditional banking hours, adding support for six regulated dollar-backed tokens.

According to a statement released by Mastercard on Wednesday, the company will enable card settlement using Circle’s USDC, Paxos-issued PYUSD, USDG and USDP, Ripple’s RLUSD, and SoFiUSD. The service will operate across Ethereum, Solana, Polygon, Base, Arbitrum, Canton, Tempo, and the XRP Ledger.

Under the rollout, issuers and acquirers will be able to settle transactions during weekends, holidays, and throughout the day instead of relying solely on standard banking schedules. Mastercard said the new functionality will work alongside existing settlement processes rather than replace them.

Among the first institutions expected to support the stablecoin settlement option are ARQ, formerly known as DolarApp, CBW Bank, Cross River, Lead Bank, and Nuvei. Mastercard said the initial deployment will cover parts of the United States and Latin America, with additional expansion planned through 2026.

In its statement, Mastercard said the framework is designed to maintain the same operational standards already used across its network. The company added that security controls, fraud protections, dispute handling procedures, and interoperability features will remain in place as stablecoin settlements are introduced.

Stablecoin strategy gains momentum

Arriving weeks after Mastercard obtained a BitLicense through its subsidiary Mastercard Transaction Services (U.S.) LLC, the latest rollout builds on the company’s effort to integrate regulated digital assets into its payments infrastructure.

As reported in May, the New York State Department of Financial Services granted the license, allowing Mastercard’s subsidiary to conduct virtual currency business activity in New York. Mastercard said at the time that the authorization would support services involving stablecoins and tokenized deposits while operating under the same compliance standards applied to its traditional payments business.

Further investment followed in March when Mastercard reached a definitive agreement to acquire stablecoin infrastructure provider BVNK for up to $1.8 billion. More recently, the company granted a Mastercard Principal Membership to stablecoin card issuer Rain, adding another piece to its digital asset payments strategy.

Elsewhere in the payments industry, competitors are also increasing activity around blockchain-based settlement systems. Visa has continued testing stablecoin-linked settlement programs across multiple blockchain networks, while MoneyGram recently launched its MGUSD stablecoin on Stellar to support its international payments operations.

Data from CoinGecko shows the supply of dollar-backed stablecoins is approaching $300 billion.

Tether’s USDT remains the largest stablecoin with roughly $188 billion in circulation, while Circle’s USDC follows with approximately $76 billion.

TLDR:

• Singapore Police Force blockchain analysis helped block over $4.2M in potential crypto scam losses in six weeks.
• Seven crypto exchanges including Coinbase, OKX, and Gemini supported the SPF’s second joint anti-scam operation.
• Officers conducted 145+ targeted interventions using Chainalysis and TRM Labs blockchain analytical tools.
• The operation covered government impersonation, investment, job, and love scam categories across Singapore.

The Singapore Police Force blockchain analysis operation has blocked over $4.2 million in potential scam losses. Running from April 16 to May 31, 2026, the six-week effort reached more than 145 victims across multiple scam categories.

The Anti-Scam Centre and Cyber Investigation Branch partnered with seven cryptocurrency exchanges. Advanced analytical tools from Chainalysis and TRM Labs powered the interventions.

The operation marks the second collaboration of its kind between the SPF and the private sector.

Exchanges and Tools Drive Faster Victim Identification

The second operation expanded on the foundation set by the first joint effort. That earlier campaign had protected $2.86 million and reached over 90 victims.

This time, the participating exchanges included Coinbase, Coinhako, Gemini, Independent Reserve, OKX, StraitsX, and Upbit. The broader consortium allowed officers to cast a wider net across the blockchain.

Chainalysis publicly acknowledged the growing impact of the partnership. “From $2.86M to the addition of $4.2M protected. From 90+ to 145+ victims reached,” the firm stated.

It added that when public-private partnerships are sustained and scaled, impact grows. The numbers reflect a measurable step forward in proactive crypto crime prevention.

Officers conducted more than 145 targeted interventions through phone calls and in-person visits. Exchanges facilitated this by providing timely customer data upon request.

The scam categories covered included government impersonation, investment fraud, job scams, and love scams.

The combination of investigative capability and exchange cooperation made early detection possible. Without the data-sharing agreements in place, officers would have had fewer entry points into victim identification. The operation showed how intelligence-led policing can work effectively within the crypto space.

Public Awareness Remains Central to the Anti-Scam Strategy

Beyond the technical operations, the SPF maintained its public education push throughout the campaign. The force continues to promote its “ACT” framework, which stands for Add, Check, and Tell. Each element targets a different stage of scam prevention for ordinary users.

Under the Add step, residents are encouraged to install the ScamShield app and activate two-factor authentication.

Setting transaction limits on banking and PayNow accounts also reduces exposure. These measures work as a first line of defense before a scam reaches a critical stage.

The Check step urges the public to pause before transferring money or sharing personal details. Verifying the legitimacy of requests and online listings can prevent losses before they occur. The rule of thumb remains straightforward: if it appears too good to be true, it probably is.

The Tell step involves reporting scam encounters to banks, ScamShield, or directly to police. Residents can call the ScamShield Helpline at 1799 or reach the Police Hotline at 1800-255-0000. Sharing information about active scams within communities also helps limit the reach of fraudsters.

Paris-based crypto data platform Kaiko acquired Amberdata, a US-focused digital asset data provider, as institutional investors demand broader market, derivatives and onchain analytics for digital assets.

Kaiko said the deal will expand its institutional data stack and help the combined company serve banks, asset managers, hedge funds, exchanges and trading firms that need cleaner data across fragmented crypto markets, according to an announcement shared with Cointelegraph.

The acquisition adds Amberdata’s derivatives analytics and artificial intelligence-powered research tools, including the GVOL options analytics platform, which Kaiko said had been one of the most requested capabilities from institutional clients.

The transaction was finalized on Monday, but the size and terms of the deal remain confidential, Ambre Soubiran, CEO of Kaiko, told Cointelegraph.

The deal marks Kaiko’s fifth acquisition and expands its effort to consolidate institutional-grade crypto market data, derivatives analytics and onchain infrastructure. Kaiko said the combined company will serve 250 institutional clients worldwide. Kaiko acquired onchain data infrastructure provider Cometh on May 20, which is licensed under the European Union’s Markets in Crypto-Assets Regulation (MiCA) as a crypto asset service provider.

Kaiko platform homepage. Source: Kaiko.com

In February, Bloomberg announced a collaboration with Kaiko to make Bloomberg’s licensed financial data accessible directly within blockchain-native environments, expanding from traditional offchain databases to address the challenge of inconsistent data across tokenized markets, Cointelegraph reported.

Reliable data is particularly important in markets linked to tokenized real-world assets to ensure that onchain assets mirror the pricing of the underlying financial instruments.

Related: NYSE parent ICE pushes ‘level playing field’ for 24/7 onchain perps

Crypto data firms need to adhere to TradFi standards: Kaiko CEO

Cryptocurrency data companies need to adhere to stricter TradFi-like standards to facilitate the growing institutional participation in the industry, Kaiko’s Soubiran told Cointelegraph, adding:

“The growing participation from banks, asset managers, and hedge funds accelerates the demand, and this acquisition is the completion of a strategy that has been underway since day one.”

Amberdata’s acquisition makes Kaiko the “only independent, globally regulated company that can serve every data need an institution has,” she added.

LIT trading price, listing time, minute-by-minute. Source: Kaiko

Earlier in May, Kaiko’s data platform flagged concerning trading patterns suggesting that some traders are frontrunning crypto listing announcements on Robinhood, raising concerns that some market participants have access to non-public listing information or an “exceptionally reliable front-running methodology built on public signals.”

Magazine: Polymarket seeks Japan entry, Harvard dumps entire ETH position: Hodler’s Digest, May 17 – 23

The UK Financial Conduct Authority has warned football clubs that sponsorship deals with unauthorised crypto firms could expose fans to financial harm while creating legal, money laundering and reputational risks for clubs.

According to the FCA, it has written to Premier League clubs and other football organizations after identifying concerns that some crypto companies and trading platforms may be using sponsorship agreements to promote financial products in Britain without the required authorization.

The regulator said unauthorised firms could be breaching the UK’s financial promotion rules by gaining visibility through partnerships with high-profile football teams and using those relationships to reach large audiences of supporters.

Speaking on the issue, Lucy Castledine, director of consumer investments at the FCA, said millions of fans place trust in their clubs and should not be exposed to potentially unsafe financial products through sponsorship arrangements. 

Castledine warned that unauthorised firms could seek to benefit from that loyalty while offering products that fall outside the UK’s regulatory safeguards.

Having already contacted clubs where concerns were identified, the FCA said it would take further action where necessary. The regulator added that customers using unregulated firms face the risk of losing all their money and are unlikely to have access to regulatory protections if something goes wrong.

Alongside consumer protection concerns, the warning also touches a growing source of revenue for football clubs.

According to Deloitte, commercial and sponsorship income has overtaken broadcasting revenue as the largest source of earnings for many clubs. Manchester City generated €408 million ($475 million) from commercial activities in 2025, exceeding its €332 million in broadcasting revenue, according to Deloitte’s figures.

Commenting on the issue, UK Sports Minister Stephanie Peacock said sponsorship revenue remains important for the football industry, but supporters deserve confidence that companies associated with their clubs are responsible, accountable and safe to use.

FCA steps up scrutiny as crypto rulebook takes shape

Elsewhere, the warning arrives as the FCA continues work on a wider framework for digital assets ahead of the UK’s planned crypto licensing regime.

Back in April, the regulator launched consultations covering stablecoins, crypto trading platforms, custody services and staking activities. The FCA said those proposals are intended to define how crypto businesses will operate under the future Financial Services and Markets Act framework and help firms prepare for upcoming authorization requirements.

Under the current timetable outlined by the FCA, crypto companies will be able to apply for authorization from September 30, 2026, while the full cryptoasset regime is scheduled to take effect on October 25, 2027. The regulator has repeatedly stated that it wants UK consumers to be served by authorised crypto firms and to have sufficient information to make informed decisions.

Crypto is losing its momentum-trade status as investors turn toward AI stocks, according to Bitwise chief investment officer Matt Hougan.

Hougan said the crypto market is under pressure because investors now have several fast-moving alternatives. In a June 2 market note, he pointed to AI stocks, robotics firms and SpaceX as assets drawing market attention away from digital assets.

“The crypto market is brutal right now,” Hougan wrote. He added that crypto is moving “from momentum trade to contrarian bet” as AI takes more investor attention.

The shift comes after AI-linked stocks gained strong demand following the public launch of ChatGPT in late 2022. Nvidia, a key AI chipmaker, has seen its shares rise sharply since then, making AI one of the main stories in public markets.

Hougan said this change does not mean crypto is disappearing. Instead, he said it changes the type of investor and project that the market rewards.

Fundamentals Replace Market Hype

Hougan said contrarian bets need patience and a focus on fundamentals. He said investors who still believe in crypto now look for clear revenue, strong use cases and projects with working business models.

“Investors still believe in crypto, but now that it’s a contrarian bet, they favor fundamentals over vibes,” Hougan wrote.

He said this explains why some smaller tokens have performed better than major assets. Hyperliquid, BNB, Zcash and Stellar posted gains in May, while Bitcoin, Ethereum and Solana remained under pressure.

According to Hougan, that rotation shows that the market is no longer rewarding broad crypto exposure in the same way. It is now rewarding assets with clearer stories and stronger data.

Bitcoin weakness reflects broader market rotation

As previously reported by crypto.news, Binance Research also linked Bitcoin’s recent weakness to capital moving into U.S. equities. The firm said AI, defense and energy stocks have pulled flows away from Bitcoin during the current quarter.

Bitcoin also fell below $70,000 after U.S. spot Bitcoin ETFs recorded $483 million in daily net outflows. Those withdrawals extended an 11-session outflow streak that topped $3.4 billion.

Crypto.news also reported that Mt. Gox-linked wallets moved 10,306 BTC worth about $739 million. No direct sale was confirmed, but the transfer added new concern about possible supply entering the market.

The market remains weak, but Hougan said green pockets in smaller assets may show that crypto is closer to the end of the downturn than the start. He said the next phase will likely depend on fundamentals, regulation and whether investors return after the AI trade cools.