Bitcoin mining companies with existing operations in Texas are likely to face limited direct disruption from a new state-level pause on certain data center approvals, according to Bernstein analysts. The move centers on heightened scrutiny of how quickly new data center projects are being lined up to connect to Texas’ power grid.

Governor Greg Abbott ordered the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct an audit of data centers seeking to connect to the grid, The Texas Tribune reported. Bernstein said many Texas miners are already covered by electric capacity agreements that have been approved, which could reduce near-term operational risk.

Key takeaways

• Bernstein expects most Texas-based Bitcoin miners to be minimally affected because many are contracted for approved power capacity.
• The audit and moratorium are expected to slow or throttle speculative data center “pipeline” projects, potentially increasing the value of sites with development history.
• Miners most exposed may include those whose future growth depends on converting existing pipeline assets into grid-connected capacity during ERCOT’s approvals.
• Bernstein highlighted Texas operations of Cipher Digital, Core Scientific, CleanSpark, IREN and Riot Platforms as relevant to how the approval process evolves.

Texas audit targets data center grid connections

On Monday, Governor Abbott directed regulators to audit all data centers attempting to connect to the state’s electric grid system. The directive is linked to mounting public backlash over the pace of data center development in Texas, as The Texas Tribune noted in reporting on the order.

While the article describing the order did not specify how long the audit would run, the practical effect is already clear: new or pending grid-connection approvals are likely to slow while regulators review the pipeline. For electricity-intensive industries—data centers and Bitcoin mining in particular—grid access timing can be as important as total contracted capacity.

Why Bernstein says active miners may be spared

In a client note released Tuesday, Bernstein analysts argued that the direct impact on Bitcoin miners with Texas operations should be limited. Their central point: most miners operating in the state are under contracts for electric capacity that has already been approved.

That distinction matters for investors and operators. An audit that primarily affects approvals for new connections is less likely to interrupt existing operations tied to already-cleared power supply, especially where miners have scheduled energy use and infrastructure already in place.

Bernstein also suggested that throttling new approvals could create a different kind of market effect. The analysts wrote that the audit “throttles speculative data center pipeline” and, in turn, “makes genuine sites with development history more valuable.” They linked that value proposition to mining sites typically having “longest gestation” characteristics, self-funding infrastructure, and management at the local level.

Which miners Bernstein flags as more vulnerable

Even if day-to-day production is less likely to be disrupted for capacity that is already approved, growth plans can still run into delays. Bernstein pointed to miners it believes could be more exposed—particularly if their path to expansion depends on ERCOT approval processes to convert pipeline assets into grid-connected power capacity.

The analysts specifically named Cipher Digital, Core Scientific and CleanSpark as candidates that could face greater sensitivity to future public opposition and the timeline pressures created by moratoriums or directives affecting new capacity approvals.

They also highlighted IREN and Riot Platforms, noting that both have Texas mining operations that are described as fully ERCOT grid approved. In Bernstein’s framing, that approved status may matter more as new capacity becomes harder or slower to obtain.

From data center controversy to mining capacity economics

At the heart of the story is an electricity allocation question. Texas’ grid-connection process is a bottleneck for any load expansion, and public opposition can influence political and regulatory outcomes—especially when state leadership orders audits or pauses.

Bernstein’s view effectively reframes the risk from “immediate operational shutdown” to “capital planning and future capacity accessibility.” If ERCOT’s approvals become slower, and if speculative data center projects are paused or delayed, then existing—especially already-approved—capacity may retain or increase its relative value versus projects still in the queue.

For miners, this can change how the market evaluates expansion-stage assets. If new MWs (megawatts) are throttled by policy actions, then entities able to monetize power access sooner—either because they are already grid approved or because they have stronger development histories—may face fewer timing disadvantages.

Stock reaction and company updates

In Tuesday’s premarket trading, Cipher Digital shares were down more than 7%, according to Yahoo Finance data. Separately, Cipher Digital reported second-quarter results earlier Tuesday, showing a loss of $0.65 per diluted share that widened from last year’s loss of $0.12 per diluted share, according to the company’s posted update.

While the stock move is not automatically attributable to the Texas audit by the information provided, it underscores how quickly market participants can price in regulatory uncertainty, especially for firms tied to the broader data center and power-capacity conversation.

Going forward, readers should watch how long the audit lasts and how ERCOT and the PUCT handle conversion of pipeline assets into approved grid-connected capacity—because that timeline will likely determine whether the near-term “freeze” stays contained or begins to affect future miner expansion plans.

The Hell’s Kitchen megaproject on the shore of California’s Salton Sea is a $1.8 billion bet on a massive, first-of-its-kind geothermal power and lithium-extraction facility. Developers aim to start up the facility’s new geothermal power production first, with lithium mining to follow. While the county and Controlled Thermal Resources, the mine’s owner, last year defeated a lawsuit that attempted to halt operations there, community opposition remains strong and opponents are appealing. The project sits in a low-income, heavily Latino, environmentally over-burdened valley with some of the worst air quality in the country. Tensions are also rife over the mine’s water consumption and the terms of its community-benefit agreement. Meanwhile, as demand for lithium for EV batteries has softened, the company has emphasized that both its geothermal energy and minerals can serve the AI-driven data-center boom. 

Wells Fargo plans to launch tokenized deposits this fall, allowing corporate and commercial clients to move and settle funds outside traditional banking hours.

Wells Fargo tokenized deposits will support 24/7 settlement

Per an Aug. 4 WSJ report, Wells Fargo said the service will allow participating clients to transfer, program and settle funds around the clock within a regulated banking framework. The initial rollout will cover transactions between the U.S. dollar and British pound.

Unlike conventional bank transfers, which can face market-hour restrictions and settlement delays, tokenized deposits represent customer funds as digital tokens on a blockchain. This structure can support near-continuous settlement while keeping the deposits within the banking system.

The program will run on Wells Fargo’s proprietary blockchain platform, which supports internal custodial wallets. The bank said future offerings could also use its interchain connectivity technology to communicate with other blockchain networks.

“The program will roll out this fall with a limited U.S. dollar (USD) to British pound (GBP) exchange and will expand over the course of 2027 to more clients, countries, and currencies,” the bank said.

Chief Financial Officer Mike Santomassimo described the launch as an “important step forward” in expanding the bank’s payment options. Wells Fargo will determine additional currencies and markets based on client demand.

Why banks are turning to tokenized deposits

Tokenized deposits allow banks to offer some of the speed and programmability associated with stablecoins without moving customer funds outside the regulated deposit system. Banks retain control over issuance, transfers, and compliance checks.

Wells Fargo joins JPMorgan and Citigroup in developing blockchain-based settlement services. JPMorgan has expanded its deposit-token infrastructure across blockchain networks, while Citi has developed tokenized deposit and securities services for institutional clients.

The new product could help Wells Fargo serve businesses that require cross-border settlement outside normal banking hours. Corporate treasury teams could also use programmable transactions to automate payments when predefined conditions are met.

For U.S. companies, the first USD-to-GBP corridor could reduce delays between American and British banking hours. However, Wells Fargo has not disclosed pricing, transaction limits, or eligibility requirements for the pilot.

WFUSD trademark preceded the tokenized deposit plan

The announcement follows Wells Fargo’s March trademark application for “WFUSD,” which prompted speculation that the bank was preparing a dollar-linked digital asset.

The U.S. trademark filing covers cryptocurrency payment processing, electronic transfers of virtual currencies, and software used to tokenize assets. It also includes blockchain-based payment verification and platforms capable of processing stablecoin transactions.

Wells Fargo has not confirmed whether WFUSD is the name of its planned tokenized deposit product. A trademark application also does not guarantee that a commercial service will launch under that name.

Still, the filing showed that the bank was evaluating blockchain-based financial services months before disclosing its tokenized deposit rollout.

Wells Fargo deepens its digital asset exposure

Wells Fargo has also increased its exposure to crypto-related investment products. A regulatory filing reported by crypto.news in July showed that the bank raised its Strategy position by 125% to nearly 726,000 shares, adding about $41.5 million in exposure.

The bank simultaneously reduced its position in BlackRock’s iShares Bitcoin Trust by 75,102 shares. It also opened a new IBIT call position, increased its put exposure and added investments linked to Ethereum and Solana.

Those holdings are separate from the tokenized deposit initiative, but they reflect Wells Fargo’s widening involvement across digital assets and blockchain infrastructure.

The bank plans to begin with selected corporate and commercial clients before broadening access during 2027. The rollout’s next phase will depend on demand, regulatory requirements and the platform’s ability to connect with other private tokenized deposit networks.

In a July 8 meeting, US and UK regulators highlighted the implementation of the GENIUS Act, payment modernization and cross-border cooperation, reinforcing a shared framework for digital asset oversight.

The United States and the United Kingdom reaffirmed their commitment to closer financial regulatory cooperation during a recent bilateral working group, signaling continued policy alignment on digital assets as US authorities move to implement landmark stablecoin legislation.

During the 13th meeting of the UK-US Financial Regulatory Working Group (FRWG), held in London on July 8, officials discussed stablecoin regulation, digital asset market structure in the United States, tokenization and the UK’s Wholesale Financial Markets Digital Strategy.

An Aug. 4 joint statement summarizing the meeting said US officials updated their UK counterparts on implementation of the GENIUS Act, the country’s landmark stablecoin law, as well as ongoing work on digital asset market structure. Participants also discussed payment modernization and the G20 Cross-border Payments Roadmap, an international initiative to improve cross-border payments.

Although the meeting did not produce new policy measures, it underscored a shared commitment to coordinating regulation across key areas of the digital asset industry. The statement struck a broadly supportive tone toward “responsible” digital asset innovation while emphasizing financial stability and international regulatory cooperation.

That commitment was also reflected on July 14, when the Transatlantic Taskforce for Markets of the Future — a joint US-UK initiative focused on strengthening cooperation on financial innovation and capital markets — published its initial recommendations alongside a joint statement on stablecoins. The governments said the measures would lay the foundation for continued US-UK leadership in digital assets and capital markets.

Related: UK government defers capital gains on certain crypto with ‘no gain, no loss’ approach

UK rethinks stablecoin rules as US moves ahead

The UK’s renewed emphasis on stablecoins comes as some industry observers argue the country is losing ground to the United States, where the GENIUS Act has accelerated momentum behind regulated dollar-backed stablecoins.

The Bank of England has also softened its stance on stablecoin regulation. As Cointelegraph reported in May, the BoE is considering alternatives to temporary limits on stablecoin holdings and is reviewing whether its proposal requiring at least 40% of reserve assets to be held as non-interest-bearing deposits at the central bank is too restrictive. 

Separately, the UK’s Financial Conduct Authority said earlier this year that cross-border payments represent one of the clearest near-term use cases for stablecoins, underscoring growing regulatory recognition of the technology’s potential.

Magazine: Coldcard exploit sparks Bitcoin flight, ‘bullish’ crypto consolidation: Hodler’s Digest, August 2

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The XRP Ledger recorded a sharp rise in real-world asset holders as Ripple expanded its tokenization strategy. RWA holder numbers increased 25.16% during the past month, reflecting stronger activity across the network. However, the blockchain’s stablecoin market remained under pressure despite modest growth in participating addresses.

XRP Ledger RWA Holders Rise 25%

The XRP Ledger’s RWA ecosystem gained more holders as tokenized finance attracted additional users and businesses. Data showed a 25.16% monthly increase in addresses holding tokenized real-world assets on XRPL. This growth strengthened the network’s position within the expanding blockchain-based asset market.

Real-world assets represent physical or traditional financial products recorded and managed through blockchain technology. These assets can include bonds, property, commodities, funds, and private credit products. Tokenization can simplify ownership transfers while improving settlement speed and access to financial markets.

XRPL supports tokenized assets through fast settlement, low transaction costs, and built-in exchange functions. These features allow companies to issue, move, and trade assets without relying on multiple external systems. Consequently, the network has become a practical option for institutions exploring blockchain-based financial products.

Ripple Expands XRPL Tokenization Infrastructure

Ripple recently invested in two major companies to expand infrastructure supporting institutional tokenization on the XRP Ledger. The investments form part of Ripple’s broader plan to bring more financial assets onto blockchain networks. They also support tools needed for custody, settlement, compliance, issuance, and secondary market activity.

Ripple has increased its focus on capital markets as institutions explore tokenized funds and other digital financial products. The company aims to position XRPL as a reliable network for enterprise payments and asset management. Therefore, Ripple continues to add partnerships and services that connect traditional finance with blockchain infrastructure.

More than 1,000 developers and businesses now build products and services across the XRP Ledger ecosystem. These participants support payments, token issuance, decentralized trading, custody, compliance, and institutional settlement services. Their activity broadens XRPL’s utility beyond XRP transfers and strengthens its role in digital finance.

XRPL has operated for more than a decade and uses a consensus system without traditional mining. The network processes transactions within seconds and charges relatively low fees for transfers. These features have supported Ripple’s efforts to promote the ledger for cross-border payments and tokenized assets.

XRPL Stablecoin Market Remains Below Peak

Despite the RWA holder increase, the XRP Ledger’s stablecoin market recorded another decline during the month. Stablecoin market capitalization fell 9.04% and reached approximately $901.4 million. The decrease showed that holder growth has not yet produced a wider recovery in stablecoin value.

However, the number of stablecoin holders increased 0.92% during the same 30-day period. More than 60,240 addresses held stablecoins on XRPL after the monthly increase. This change suggests that participation expanded slightly even as the total market value declined.

Stablecoins support payments, trading, settlement, and liquidity across tokenized financial markets. Ripple also uses RLUSD to strengthen its payment and institutional product ecosystem. The dollar-backed asset operates on both the XRP Ledger and Ethereum, which extends its reach.

A stronger stablecoin market could improve liquidity for tokenized assets issued through the XRP Ledger. Stablecoins allow users to settle trades without moving funds through traditional banking systems. Therefore, their adoption could support Ripple’s wider institutional finance strategy and encourage more activity across XRPL.

The latest figures show uneven growth across the XRP Ledger’s expanding tokenization market. RWA holders increased quickly, while stablecoin capitalization continued to fall during the same period. Ripple’s infrastructure push now provides the main foundation for further adoption across both sectors.

The risk, which remains until users take action, is confined to specific devices and firmware. Owners of the Mk3, Coldcard’s 2019 model, should move their funds now if the wallet was set up on firmware 4.0.1 or later. Mk4, Mk5 and Q owners on firmware below 5.6.0 or 1.5.0Q should update, create a new wallet and then move their coins across.

Coinkite has said the exception is anyone who used the device’s dice option, where a user physically rolls dice at least 50 times and types in the results, and the wallet builds its key from those numbers instead of generating its own. Those wallets never touched the broken code and are safe.

A seed is the master key controlling a wallet’s coins, so one produced with too little randomness, or entropy, can be guessed and regenerated by an attacker, who can then drain the wallet without ever touching the device.

Vincent Bouzon, cybersecurity expert at Ledger, which makes competing hardware wallets, said the incident was a failure of one implementation rather than a verdict on self-custody.

“Every wallet ultimately depends on a root secret generated from high-quality entropy,” Bouzon told CoinDesk in an email, adding that the generation of that entropy “must be anchored in secure hardware, with an architecture that cannot silently downgrade to an untrusted software-based source.”