Pavel Durov, the co-founder of Telegram, has sharpened his critique of Spain’s proposed online age-verification regime, warning that a policy aimed at shielding minors could usher in broader censorship and government-led surveillance. The plan — which seeks to require platforms to verify users’ ages and potentially restrict access for those under 16 — follows similar moves in other European jurisdictions and was publicly unveiled as Spain’s government positioned itself at the forefront of a continent-wide push toward digital identity controls. Durov, documenting his stance on Telegram, stressed that the measures risk de-anonymizing users and empowering authorities to police online speech. The discourse arrives amid a broader debate about privacy, safety, and how to balance child protection with civil liberties.

“Pedro Sánchez’s government is pushing dangerous new regulations that threaten your internet freedoms. Announced just yesterday, these measures could turn Spain into a surveillance state under the guise of ‘protection.’”

Spain’s prime minister, Pedro Sánchez, announced on Tuesday that the country will enact online age-verification policies similar to those deployed in other parts of Europe, including the United Kingdom. Speaking at the World Governments Summit in Dubai, Sánchez framed the move as a necessary step to “protect our children,” asserting that social networks have become a “failed state” in need of stronger oversight. The remarks signaled a broader push within Spain to merge child-protection initiatives with stricter digital-identity requirements, potentially affecting how minors access social platforms.

Yet the policy has sparked a wave of pushback from privacy advocates and cyber-activists who argue that the approach sacrifices fundamental freedoms in the name of protection. Critics contend that age verification, as currently imagined, could chill speech and widen government control over what people can see, say, and share online. The debate touches on broader issues of digital identity, privacy, and the role of state power in policing online spaces — questions that increasingly draw the attention of crypto-focused communities and privacy-centered technologists alike.

In the wake of Sánchez’s announcement, privacy advocates and technologists have argued that current-age-verification techniques are imperfect and prone to circumvention. Some have pointed to the growing use of virtual private networks (VPNs) as a practical workaround, raising concerns about the efficacy and fairness of blanket age restrictions. A more constructive line of critique has emerged from industry voices who say that cryptographic identity systems could offer a path forward — proving that a person is adult or that they meet certain criteria without exposing their private data to platforms or third parties.

“You want to control people who expose the corruption in your government,” a user named Campari quipped in a social post reacting to the proposal. The discourse has drawn remarks from prominent tech figures, including billionaire Elon Musk, who criticized the approach, and journalists who urged vigilance against policies that may curtail online expression. The conversation underscores a broader concern: that well-intentioned child-safety measures could be repurposed to justify more aggressive surveillance regimes and content moderation powered by state actors.

Critics also highlight that age-verification efforts should be designed with privacy-by-default principles. As one blockchain executive noted, the current methods can be counterproductive because they push users toward opaque and less secure means of identity verification, which could expose them to data leaks or misuse. The same voices emphasize that cryptographic identity tools — if implemented properly — could allow individuals to demonstrate age or eligibility without revealing sensitive details such as birthdates or real names, thereby preserving user anonymity where appropriate while maintaining safety guarantees.

The debate in Spain mirrors related conversations across Europe and beyond about how to reconcile child-protection goals with the right to privacy on open networks. In the United Kingdom, for instance, officials have discussed similar restrictions aimed at younger users and the sharing of age-related data online. The evolving policy landscape is prompting technologists to explore privacy-preserving identity mechanisms, including self-sovereign identity concepts and blockchain-enabled proofs of age — approaches that could potentially harmonize safety with civil liberties if implemented with robust governance and privacy protections.

As policymakers weigh the practicalities of such systems, industry leaders caution that the success or failure of Spain’s program will hinge on whether verification methods can be both secure and privacy-preserving, while not creating barriers to legitimate online participation. The conversation extends to the crypto ecosystem, where debates over identity, data minimization, and user autonomy have gained renewed attention in recent years. In this context, the call for cryptographic identity management is less about creating new cryptographic gimmicks and more about aligning digital rights with real-world protections in an increasingly digital society.

In the immediate term, observers are watching for concrete legislative steps, timelines, and the scope of application — including whether the policies would apply to all social platforms or be tailored to certain categories of services. The policy’s implementation could set a precedent for other jurisdictions grappling with similar questions, potentially influencing how digital identity is constructed and regulated across borders.

Why it matters

The Spain debate sits at a critical crossroads for the digital age: the tension between safeguarding minors online and protecting civil liberties. How a government implements age verification can shape public discourse, influence platform behavior, and redefine the boundaries of privacy in an era where data is a core asset. For users and investors across cyber and crypto spaces, the policy highlights the need for privacy-preserving technologies that can simultaneously enable safety, transparency, and trust online. If Spain moves ahead with robust safeguards that respect user anonymity while preventing exploitation, it could accelerate adoption of privacy-centric identity solutions elsewhere. If, on the other hand, the design proves heavy-handed or opaque, it could catalyze calls for greater decentralization of identity management and more resilient tools for users who value privacy.

For builders in the crypto and Web3 space, the episode underscores the potential role of decentralized identity and cryptographic proofs as viable alternatives to centralized verification schemes. It also raises questions about regulatory divergency within Europe, the integration of identity standards across platforms, and the incentives governments may create for developers to design privacy-first solutions. In short, the Spain policy could become a touchstone for how digital identity is conceived, implemented, and governed in a privacy-conscious era.

What to watch next

• Timeline and wording of the proposed legislation in Spain, including which platforms and services would be affected and what verification methods would be allowed.
• Responses from privacy authorities, civil-society groups, and technology companies, including potential legal challenges or amendments.
• Developments in privacy-preserving identity technologies, including any pilot programs or collaborations with crypto-native projects.
• The UK and other European jurisdictions’ actions on under-16 access and online identification, and how those policies interact with Spain’s proposal.
• Any formal documentation outlining data-handling, opt-out provisions, and data-minimization requirements for verification data.

Sources & verification

• Pavel Durov’s post on Telegram detailing concerns about Spain’s age-verification push and potential privacy implications.
• Pedro Sánchez’s remarks at the World Governments Summit in Dubai announcing Spain’s plan to enact online age verification policies.
• Cointelegraph coverage (Spain ban social media minors security) referencing the policy’s public rollout and government stance.
• Articles and resources on digital identity management and privacy-preserving verification methods, including discussions on cryptographic proofs of age.
• Related discussions about under-16 social-media restrictions in the UK and ongoing identity debates in Europe.

Spain’s online-age debate and the crypto community’s take

The debate over online age verification in Spain has put digital privacy and child protection at the center of a broader conversation about how to manage identity in a networked world. The policy proposal channels pent-up concerns about how data may be collected, stored, and leveraged by both public and private actors. Crypto-focused voices have urged policymakers to consider solutions that minimize exposure of personal data through cryptographic techniques that allow age verification without disclosing who a person is or where they live. They argue that such approaches could reduce the risk of mass surveillance and data breaches while still meeting safety objectives.

As these conversations unfold, the industry is watching how Spain balances the competing priorities of child protection, free expression, and privacy. The outcome could influence how other jurisdictions structure their own digital-identity frameworks and what kinds of technology are promoted or discouraged in the process. The current discourse reflects a broader shift in which the crypto and privacy communities advocate for standards that empower individuals to prove specific attributes (like age) without revealing more than necessary. A decision in Spain could thus ripple across regulatory and technology choices worldwide, shaping how identity and access are managed online for years to come.

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Despite a broad crypto market pause that has pulled Bitcoin toward the $70,000 level, XRP has carved out a comparatively resilient narrative on social media. Investor sentiment surrounding XRP remains more constructive than the mood around leaders like Bitcoin and Ethereum, even as prices slip. Santiment highlighted that XRP is enjoying a more optimistic outlook among traders on social channels, even as BTC and ETH have slid from recent highs after a pronounced downturn. The contrast underscores how on-chain chatter and price action can diverge for select assets during drawdowns.

Key takeaways

• XRP’s social sentiment metric indicates a stronger positive-to-negative mention ratio (2.19) than Bitcoin (0.80) and Ethereum (1.08), suggesting a comparatively bullish narrative for XRP despite a broader market slump.
• Over the past week, BTC declined 4.97% and ETH declined 4.92%, while XRP fell more sharply at 6.82%, signaling that XRP has not been immune to the downturn even as sentiment remains more upbeat.
• Swyftx analyst Pav Hundal argues that XRP holders “wear volatility differently” and maintain faith in the asset’s fundamentals, potentially dampening near-term selloffs.
• Analysts warn that the near term could be choppy, with XRP still down about 35.5% over the last 30 days, though some believe a relief rally could materialize if overall trader sentiment remains cautious toward the broader market.
• Macro sentiment gauges show pockets of fear: Alternative.me’s Crypto Fear & Greed Index sits at an extreme fear level (12), while the Altcoin Season Index continues to tilt toward Bitcoin dominance rather than broader altcoin strength.

Tickers mentioned: $BTC, $ETH, $XRP

Sentiment: Bullish

Price impact: Negative. XRP slipped 6.82% over the past seven days as BTC and ETH also retraced (BTC −4.97%, ETH −4.92%).

Trading idea (Not Financial Advice): Hold

Market context: In a risk-off backdrop, major coins joined a broader drawdown—BTC and ETH posted weekly declines while XRP’s social narrative remained comparatively resilient. The Crypto Fear & Greed Index registered extreme fear (12), signaling cautious positioning across the market, and the Altcoin Season Index shows a tilt toward Bitcoin-dominated sentiment as investors chase perceived safety at the top of the curve.

Why it matters

The divergence between social sentiment and price performance matters for participants who weigh narrative momentum alongside technicals. XRP’s relatively stronger sentiment signal could attract fresh buying interest if traders interpret it as a decoupling from the broader risk-off mood. The contrast also highlights how different crypto assets can react to macro pressures in heterogeneous ways—where BTC and ETH are bearing the brunt of the pullback, XRP’s community outlook remains more resilient on social channels.

From a fundamentals perspective, XRP holders have historically demonstrated a readiness to weather volatility, a stance that Swyftx lead analyst Pav Hundal described as an “unwavering faith” in the asset’s long-term value. Such a stance can translate into a slower pace of downside recognition during downturns, potentially supporting a later rebound if macro momentum shifts. Yet the same analyst cautions that the near term could remain unsettled as the market digests the path of interest rates, liquidity, and regulatory signals that influence sentiment far beyond a single token’s utility case.

Market-wide indicators reinforce a cautious posture. The Fear & Greed Index’s extreme fear reading suggests risk-off behavior among a broad swath of participants, while the Altcoin Season Index indicates a preference for Bitcoin over riskier altcoins. This backdrop implies that even if XRP’s social chatter stays comparatively buoyant, a material upside may require a confluence of positive catalysts—from improved macro liquidity to clearer regulatory signals or a shift in trader appetite toward altcoins. The tension between narrative optimism around XRP and the reality of ongoing drawdowns across the market continues to define the near-term outlook.

Meanwhile, the market continues to monitor potential near-term catalysts. Some traders posit that a relief rally could emerge if the broader market does not extend its drawdown and if the crowded sentiment around crypto remains hesitant enough to fuel a quick snap-back. In such a scenario, XRP could get a tilt from a combination of stabilizing price action and a relatively robust social narrative, even as BTC and ETH take time to reclaim upside momentum. The dynamics at play illustrate how sentiment signals and price action can diverge in the same market cycle, offering a nuanced view for traders seeking to balance narrative cues with risk management.

The broader takeaway is that the crypto winter narrative—once declared by notable voices in the space—remains a moving target. As some market participants debate whether a bottom is in, others point to a potential shift in mood that could unfold gradually rather than all at once. XRP’s case underscores the complexity: social sentiment can brighten while prices continue to drift lower, creating a leading indicator for a possible re-rating should conditions improve. For investors and builders, the lesson is clear—watch both on-chain signals and the mood of the market as they often tell complementary stories about where the cycle might head next.

What to watch next

• Track XRP price action over the next 1–2 weeks for early signs of a relief rally, especially if BTC and ETH stabilize or rebound.
• Monitor Santiment’s sentiment readings for XRP to see whether positive chatter sustains or fades as price action unfolds.
• Observe BTC/ETH momentum and liquidity conditions to gauge whether the broader market grip loosens enough to support a broader rebound.
• Keep an eye on the Crypto Fear & Greed Index for shifts away from Extreme Fear, which could accompany a broader improvement in risk appetite.
• Watch the Altcoin Season Index for any movement toward a more favorable altcoin rotation that includes XRP among potential beneficiaries.

Sources & verification

• Santiment’s X post citing XRP’s relatively optimistic social outlook and the comparison of sentiment scores (2.19 for XRP vs. 1.08 for ETH and 0.80 for BTC).
• Price performance data from CoinMarketCap showing seven-day changes: BTC −4.97%, ETH −4.92%, XRP −6.82%.
• Comments from Pav Hundal, lead analyst at Swyftx, on how XRP holders approach volatility and fundamentals.
• Alternative.me Crypto Fear & Greed Index indicating Extreme Fear (12) in the current market climate.
• CoinMarketCap Altcoin Season Index showing Bitcoin Season dynamics (32/100) and the relative preference for BTC.

Relief prospects for XRP amid broader crypto caution

Amid a risk-off environment that has pressured the major coins, XRP has emerged as a case study in how sentiment can diverge from price momentum. The narrative around XRP is colored not only by its price trajectory but also by a social-media signal that traders may interpret as resilience. Bitcoin (CRYPTO: BTC) has tested multi-month highs before retreating toward the $70,000 area, while Ethereum (CRYPTO: ETH) has mirrored the broader softness seen across the market. In that context, XRP’s social sentiment has stood out, supported by a higher positive-to-negative mention ratio than both BTC and ETH, a signal that traders are discussing XRP with a more constructive lens even as prices move lower.

The reading from Santiment—that XRP’s social sentiment is more favorable—helps explain why some market participants expect a near-term bounce even as the weekly price data are less forgiving. The seven-day window shows BTC down 4.97% and ETH down 4.92%, with XRP faring worse on the week at a 6.82% decline. These numbers illustrate the heterogeneity of the current drawdown and hint at a potential decoupling where sentiment could precede a reversal in price. The attached sentiment metrics—XRP at 2.19 vs. ETH at 1.08 and BTC at 0.80—offer a numerical snapshot of this dynamic, albeit one that must be read alongside macro liquidity and risk sentiment that continue to weigh on action across the market.

Within this framework, Pav Hundal of Swyftx emphasized a nuanced view of XRP holders’ approach to volatility. He described XRP investors as a group that tends to “wear volatility differently,” maintaining faith in the asset’s fundamentals and displaying a degree of skepticism that is less pronounced when faced with drawdowns. That perspective aligns with the observed sentiment gap and underscores a potential pathway for XRP to stabilize if macro momentum shifts. Yet, even with a seemingly steadier narrative, the near-term road remains fraught, as XRP has logged a 35.5% decline over the past 30 days, a statistic that keeps any optimistic thesis tethered to a cautionary baseline.

The market’s fear gauge—Alternative.me’s Crypto Fear & Greed Index—adds to the cautious mood. A current score of 12, marking Extreme Fear, reinforces how risk-off sentiment continues to dominate, even as some voices point to a possible relief rally in XRP should the crowd remain doubtful about crypto as a whole. The Altcoin Season Index further reinforces the pattern of risk-on behavior favoring Bitcoin (the “Bitcoin Season” standing) over a broad swath of altcoins, suggesting that a broader altcoin resurgence might require a broader shift in sentiment and liquidity conditions beyond XRP alone. In short, the path to a sustained upmove for XRP hinges on both sentiment improvement and a clearer macro backdrop that encourages demand for riskier assets.

As the quarter unfolds, market participants will be watching for a confluence of signals: a stabilization or bounce in BTC/ETH, a steady or improving social sentiment for XRP, and a broader shift in risk appetite sufficient to propel altcoins higher. The interactions between narrative momentum, price action, and macro liquidity will shape whether this period signals a bottoming process or a temporary lull before the next leg of the cycle. Investors may find that XRP’s case adds a layer of nuance to the conversation about where the market goes next, illustrating how sentiment dynamics can diverge from price charts while still offering useful information about potential catalysts and risk management considerations. The coming weeks will test whether the optimism seen in social chatter translates into tangible, tradable upside for XRP or whether it remains a narrative anchor in a still-choppy market environment.

Bitcoin prices hit a fresh low following a bout of panic selling by short-term holders, deepening the bear market downturn. 

Bitcoin prices tanked to around $73,000 in late trading on Tuesday, its lowest level since November 2024. The fall is significant because it dropped below April 2025 support levels, which were around $74,500, confirming bear market territory.

“Negative momentum is currently extreme as the bear market persists following the October 10 flash crash,” reported Swissblock.

The asset has now crashed 25% in less than three weeks and is down 40% from its all-time high.

“Bitcoin has now crashed over $53,000 in the last 120 days,” observed analyst ‘Bull Theory’ who added:

“Either this is an insane level of manipulation or something huge has broken behind the scenes in crypto.”

The move came as geopolitical tensions escalated again, with Iran seeking a new format for nuclear dialogue with the United States.

STH Capitulation Adds to Selling Pressure

“Short-term holders have been capitulating over the past few days,” said CryptoQuant analyst ‘Darkfost’. More than 40,000 BTC have been sent to exchanges at a loss over the past day or so, they added.

“This potential selling pressure appears to have impacted the market today. When large amounts of BTC are sent to exchanges, it is mainly for selling purposes.”

🔴 Short-Term Holders have been capitulating over the past few days.

In the last 24 hours, more than 40,000 BTC have been sent to exchanges at a loss.
⁰💥 Yesterday, that figure even reached 54,000 BTC.
At current prices, this represents roughly $4B.

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This potential selling… pic.twitter.com/yX0HcOwSs3

— Darkfost (@Darkfost_Coc) February 3, 2026

Santiment went into further detail, reporting that wallets with 10 to 10,000 BTC, which hold just over two-thirds of all Bitcoin, have dumped 50,181 units in the past two weeks alone.

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However, the world’s largest exchange, Binance, “shows no signs of stress,” reported CryptoQuant.

“Reserves hold near 659,000 BTC, netflows remain normal, and reserve movement sits at just 0.6%, nowhere close to the -12% panic withdrawals seen post-FTX,” it added.

Analyst ‘Sykodelic’ also remained positive, stating that “this section below the $74K lows will provide the springboard for the next macro leg higher.”

“Taking the lows, losing $74K temporarily, pushing everyone over the edge, even the most staunch of bulls… baiting a massive bear trap.”

Total Market Cap at 9 Month Low

Bitcoin had returned to trade at $76,500 at the time of writing in early trading in Asia on Wednesday, so the dip below long-term support was short-lived. However, the rest of the crypto market is in meltdown, with total capitalization tanking to a nine-month low of $2.64 trillion.

Ether fell to $2,120 before a minor recovery, and most of the altcoins had crashed to crypto winter lows with very little recovery.

Payments-focused cryptocurrency XRP is tanking fast as bitcoin’s price slide leads to broad-based risk aversion in the crypto market.

XRP has slipped to $1.44, the lowest since November 2024 – the same month President Donald Trump won the U.S. election. Trump campaigned on pro-crypto policies to foster a favorable regulatory environment for digital assets. XRP is used by fintech firm Ripple to facilitate cross-border transactions.

While the initial reaction to Trump’s election win was bullish, the uptrend quickly slowed above $3.50 and eventually peaked at $3.65 in July last year. Since then, XRP has been in a downtrend that has gathered pace in recent weeks.

Support break

The concerning part for bulls is that it now trades firmly below $1.60, a level where buyers stepped in during the April sell-off, arresting the slide at the time. This so-called support was the prominent demand zone, and the break below the same indicates that sellers are now in control.

Now, a clear air pocket looms right down to $1.00, as charts reveal scant historical support or trading volume between the current price of $1.44 and the psychological floor.

Bearish bets

And traders look to be prepping for a deeper sell-off. Block flows on leading crypto options exchange Deribit featured demand for put spreads, a bearish strategy, and strangles, a bet on volatility boom, in the past 24 hours.

Options are derivative contracts that give the purchaser the right, but not the obligation, to purchase or sell the underlying asset at a predetermined price at a later date. A put option gives the right to sell and represents a bearish bet on the market, while a call option represents a bullish bet.

Ripple has made a new addition to its institutional trading platform as it adjusts its approach to decentralized markets.

Ripple’s institutional brokerage arm has added access to decentralized derivatives markets by integrating Hyperliquid into its Prime brokerage platform.

The company announced the integration in a statement released on Feb. 4, framing it as a step to bridge traditional finance with decentralized trading.

First institutional bridge to DeFi derivatives

Ripple said Ripple Prime now supports trading and margining on Hyperliquid (HYPE), a decentralized perpetual futures venue built on its own layer-1 network.

Through the integration, institutional clients can access perpetual futures and other derivatives while managing exposure alongside FX, fixed income, OTC swaps, and cleared products. Positions are handled under a single counterparty framework, with centralized risk controls and consolidated margin.

For many institutions, the structure removes a key operational barrier. Trading on decentralized venues no longer requires direct wallet management or smart contract interaction, allowing firms to treat on-chain derivatives more like traditional exchange products.

“At Ripple Prime, we are excited to continue leading the way in merging decentralized finance with traditional prime brokerage services, offering direct support to trading, yield generation and a wider range of digital assets,” said Michael Higgins, International CEO of Ripple Prime.

Ripple described the move as its first direct link to a decentralized trading protocol, marking a shift from infrastructure and payments-focused services toward market access and execution.

XRP, HYPE and market positioning

Hyperliquid has emerged as one of the largest on-chain perpetuals platforms, supporting high-volume trading, and now, institutional-style market infrastructure.

Analysts have noted that the integration strengthens HYPE’s role in institutional trading workflows but does not create a direct use case for XRP (XRP) or the XRP Ledger. Following the announcement, HYPE has gained 5% despite the ongoing crypto market downturn.

Ripple has not announced additional DeFi integrations after the release, though industry sources expect further platform expansions in 2026 as prime brokers compete for institutional crypto flows.

The New York Stock Exchange (NYSE) is working on a new digital platform that would let people trade tokenized stocks and exchange-traded funds around the clock, seven days a week, the company revealed in a press release today, Jan. 19.

The largest stock exchange globally said in the release that the launch is only “one component” of its parent company Intercontinental Exchange’s “broader digital strategy.” Intercontinental Exchange is also working with major banks, including BNY Mellon and Citi, to support tokenized deposits across its global clearinghouses, according to the announcement.

Michael Blaugrund, vice president at Intercontinental Exchange, told Bloomberg in an interview today that the move reflects an “evolution of NYSE’s trading capabilities.” He added that NYSE could give retail investors more opportunities, allowing them to trade 24/7 and use funds immediately.

“It allows for new types of investor accessibility, and will create new opportunities for retail to participate in the stablecoin-funded markets that have attracted their attention,” Blaugrund said.

According to Bloomberg’s report, the NYSE intends to combine its existing trading system with private blockchain networks, though the team didn’t reveal further details.

The Defiant reached out to Intercontinental Exchange for details and comments on the move, but hasn’t heard back by press time.

Blaugrund also added that the company is in the process of working with the U.S. Securities and Exchange Commission (SEC) to gain approval, and Bloomberg reports that NYSE is aiming to roll out the new platform later this year.

In mid-December, Nasdaq filed with the SEC for approval to offer 24-hour trading on weekdays to meet rising global demand for U.S. stock trading. The firm says, pending regulatory approval, it plans to launch the new trading hours in the second half of this year.

Tokenized stocks have seen a huge jump in popularity in the past year. In January of last year, the total market cap of tokenized equity stood at just over $5 million, while this month it’s just over $397 million — a 7,840% increase year-over-year.

As The Defiant reported last month, centralized crypto exchanges like Coinbase and Kraken are competing for their share of the sector, while decentralized platforms such as TradeXYZ and Ostium are pushing on-chain, crypto-native adoption.

Bhutan moved $22.4 million in Bitcoin out of sovereign wallets this week, including a direct transaction to institutional market maker QCP Capital. The Himalayan nation’s crypto portfolio has dropped from a $1.4 billion peak to about $412 million.

The outflows continue a pattern of periodic liquidations by the Royal Government of Bhutan, which began mining and holding Bitcoin in 2019. These recent transactions highlight questions facing sovereign crypto strategies amid ongoing market pressures.

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Recent Bitcoin Sales and Transaction Patterns

Blockchain analytics platform Arkham confirmed the Bitcoin sales. Two major outflows came from Druk Holding Investments (DHI), Bhutan’s sovereign investment arm. The transactions included 184.03 BTC, worth $14.09 million, and 100.82 BTC, valued at $8.31 million, five days earlier. The latter went directly to labeled addresses tied to QCP Capital, a Singapore-based institutional market maker active in derivatives and spot markets.

According to Arkham’s analysis, Bhutan usually sells Bitcoin in roughly $50 million tranches. Historical data shows especially heavy sales between mid and late September 2025, with multiple transactions surpassing $50 million each. The current $22.4 million in weekly outflows is smaller than past sales, suggesting either more measured liquidation or reduced holdings.

The QCP Capital transaction signals a strategic liquidation rather than distressed selling. Market makers such as QCP enable large block trades without major market disruption. This allows sovereigns to exit positions while minimizing price impact, unlike direct exchange deposits that may trigger sharper reactions.

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Bhutan’s Bitcoin Mining Operation and Profitability

Bhutan’s Bitcoin strategy began in 2019, with DHI launching a mining operation powered by the country’s abundant hydroelectric resources. Arkham estimates that Bhutan has generated over $765 million in Bitcoin profits since its inception, while total energy costs were about $120 million. Hydropower has kept costs low compared with competitors that rely on fossil fuels.

The 2024 Bitcoin halving fundamentally changed mining economics. This event, which occurs about every four years, halves block rewards. The halving essentially doubled the cost to mine one Bitcoin, making operations less efficient. Data indicate that Bhutan mined most of its holdings before April 2024 and then sharply cut back production.

Pre-halving profit margins enabled Bhutan to amass substantial holdings at favorable costs. However, reduced efficiency after halving likely pushed the nation to monetize its reserves rather than continue energy-intensive mining at lower returns. This strategic shift from accumulation to selective selling mirrors a wider industry trend as sector profitability compresses.

Portfolio Decline and Current Holdings

Bhutan’s cryptocurrency portfolio has experienced a dramatic contraction. Arkham Intelligence data show DHI’s on-chain assets currently total about $412 million, down over 70% from the $1.4 billion peak. The portfolio consists mostly of 5,700 BTC, with negligible holdings in Ethereum and other tokens.

The portfolio decline is due to ongoing sales and depreciation in the Bitcoin price. Some value erosion came from strategic liquidations for profit or fiscal needs, but broader market conditions during 2025 and early 2026 also contributed. Bhutan’s peak holdings aligned with Bitcoin’s price highs, amplifying the percentage drop as prices corrected.

Transaction history shows DHI’s main exchange partners are Binance—which has $261 million in transferred value, or 68% of activity—and Celsius Network, with $118 million (31%). Smaller amounts moved through Kraken. These exchange interactions, combined with direct transactions with market makers, show a sophisticated approach to treasury management by Bhutan.

The Druk Holding and Investments entity manages these digital assets along with traditional investments as part of Bhutan’s broader diversification strategy. The integration of cryptocurrency into the sovereign treasury positions Bhutan among a select group of nations involved directly in digital asset markets. Whether Bhutan’s continued liquidations indicate a full exit or just portfolio rebalancing remains an open question as observers track sovereign crypto adoption trends.

TLDR

• Meta stock dropped 1.7% following the introduction of the Senate’s SCAM Act, which targets scam ads on social media platforms.
• The SCAM Act proposes stricter regulations, requiring Meta to verify advertisers and giving enforcement power to the FTC and state attorneys general.
• Meta is facing increased scrutiny from both U.S. regulators and international challenges, particularly from India’s Supreme Court regarding WhatsApp data.
• Despite embracing artificial intelligence, Meta’s reliance on ad revenue remains crucial, and stricter regulations could hinder its growth.
• The tech sector as a whole is grappling with fears that AI tools may erode profit margins, impacting major players like Meta.

Meta Platforms’ stock dropped 1.7% to $679.86 on Wednesday morning, marking another volatile session for the parent company of Facebook and Instagram. The decline followed news of a proposed bipartisan Senate bill, aiming to curb scam ads online. The bill, called the Safeguarding Consumers from Advertising Misconduct Act (SCAM Act), has raised concerns among investors, adding to the growing uncertainty surrounding Meta’s future.

Meta Platforms, Inc., META

New Senate Bill Raises Concerns for Meta’s Ad Business

The SCAM Act targets deceptive advertising practices and would impose stricter regulations on social media platforms. If passed, the bill would force platforms like Meta to verify advertisers, which could lead to increased screening costs and potential delays in onboarding new advertisers. The bill also grants enforcement powers to the Federal Trade Commission (FTC) and state attorneys general, placing further pressure on the advertising ecosystem.

Investors are closely monitoring the situation, with many worried about the impact on Meta’s core revenue stream advertising. While the company has embraced artificial intelligence in its efforts to diversify its business model, ad sales still play a crucial role in its financial performance. The bill’s focus on tightening the regulatory framework for online ads has raised concerns that it could slow Meta’s ad revenue growth.

Meta Stock Faces Broader Market Pressures

Meta’s stock is also facing broader market pressures, which have affected the technology sector as a whole. The rise of artificial intelligence has led to fears of increased competition and shrinking profit margins for established tech companies. The S&P 500 and Nasdaq both experienced significant declines this week, partly driven by concerns about AI’s impact on the industry.

Meta is grappling with these challenges at a time when the company is ramping up its spending on AI. Last week, Meta raised its capital expenditure forecast for 2026 to between $115 billion and $135 billion. CEO Mark Zuckerberg described 2026 as a pivotal year for the company as it seeks to invest heavily in “personal superintelligence.”

Despite these ambitious plans, Meta faces mounting risks from stricter regulations in both the U.S. and abroad. On Tuesday, India’s Supreme Court signaled that it might reinstate a ban on WhatsApp sharing user data with other Meta companies. India is Meta’s largest market by user count, and any further restrictions on its operations there could severely impact the company’s prospects.

Traders are left wondering how much of this proposed legislation will become law, and what the timeline might look like. Bills like the SCAM Act often undergo revisions before they are passed, with potential delays affecting near-term investor sentiment. Meanwhile, ongoing court battles, particularly in India, add to the uncertainty surrounding Meta’s future.

CME Group is reviewing new digital infrastructure options as it prepares to expand its crypto trading operations.

As part of a larger initiative to modernize margin and settlement for crypto derivatives, CME Group is exploring launching its own digital token. 

Chief executive officer Terry Duffy disclosed the plans during the company’s fourth-quarter earnings call on Feb. 4, in response to a question from Morgan Stanley analyst Michael Cyprys.

Tokenized collateral and margin strategy

Duffy’s comments came during a discussion about how CME is evaluating new forms of collateral for derivatives trading, particularly given that crypto markets operate around the clock.

“So if you were to give me a token from a systemically important financial institution, I would probably be more comfortable than maybe a third or fourth-tier bank trying to issue a token for margin,” Duffy said. “Not only are we looking at tokenized cash, we’re looking at different initiatives with our own coin.”

He added that CME is reviewing multiple approaches to margin and settlement, including tokenized cash and blockchain-based instruments that could be deployed on decentralized networks.

The proposed token, referred to in industry reports as a “CME Coin,” would likely be designed for use as collateral and settlement infrastructure rather than as a retail-facing cryptocurrency. Executives have framed the project as part of CME’s effort to improve capital efficiency and reduce friction in high-volume derivatives trading.

CME is also working with Google Cloud on a separate “tokenized cash” initiative, which the company expects to roll out later in 2026. That system could provide technical foundations for future digital collateral products.

No launch date, technical specifications, or regulatory filings have been announced, and executives stressed that the project is still in an exploratory phase.

24/7 crypto trading and institutional positioning

The token discussion comes as CME prepares to expand crypto trading hours across its futures and options products. Subject to regulatory approval, the exchange previously stated that it intends to begin full 24/7 trading for cryptocurrency derivatives in the second quarter of 2026.

CME’s goal is to enhance hedging on weekends and holidays and match its trading hours with non-stop cryptocurrency spot markets. The exchange’s market share in digital assets has steadily increased over the last year.

In late 2025, it introduced futures linked to assets like Solana and XRP, and market makers and hedge funds expressed strong interest. It will launch Cardano, Chainlink, and Stellar futures in both standard and micro contract sizes on Feb. 9.

As institutional demand for regulated products grew, the company also reported a sharp rise in crypto-related activity, with an average daily volume of $12 billion in 2025.

Startale Group and SBI Holdings have unveiled Strium, a layer-1 blockchain designed to underpin exchange-layer and settlement infrastructure for institutional trading of foreign exchange, tokenized equities, and real-world assets. Positioned as an exchange-layer network, Strium aims to streamline the movement between traditional off-chain finance and on-chain processes, including compliant dividend and royalty payments within the ecosystem. This launch marks a concrete milestone following an August 2025 strategic partnership between the two firms and comes alongside a set of proof-of-concept demonstrations intended to validate Strium’s technical foundations before broader deployment.

Key takeaways

• Strium is a dedicated layer-1 platform built to support institutional trading channels for FX, tokenized equities, and real-world assets, with a focus on settlement efficiency and cross-system interoperability.
• The initial phase will offer synthetic versions of US and Japanese stocks and commodities, functioning as derivative-like instruments rather than direct ownership of underlying assets.
• Longer-term plans include tokenized representations of real shares and asset-backed tokens, accessible through a compliant path after identity checks and regulatory adherence, plus an open layer for broader participation.
• The venture couples Startale Group’s tech vision with SBI Holdings’ regulated financial infrastructure and licensed entities, including exploration of a yen-stablecoin structure tied to Shinsei Trust & Banking and SBI VC Trade.
• Proof-of-concept work focuses on settlement throughput, system resilience under heavy load, and interoperability with legacy financial systems and other blockchain networks, with a public testnet anticipated en route to commercial deployment.

Market context: The Strium initiative arrives amid a broader industry push toward tokenization of traditional assets and exchange-traded products. In parallel, public disclosures have highlighted moves by traditional exchanges toward blockchain-enabled post-trade workflows, signaling a gradual convergence of regulated finance and on-chain infrastructure. Industry observers have also noted rising attention from banks and asset managers toward tokenized asset classes as liquidity and regulatory clarity evolve, a dynamic reinforced by industry reports suggesting tokenization could become more mainstream in coming years.

Market context: The broader market backdrop includes ongoing discussions about tokenized equity offerings and infrastructure upgrades, with institutions increasingly evaluating how blockchain-native settlement can complement existing trading workflows. This environment creates opportunities for joint ventures that combine regulated rails with on-chain programmability, especially for assets that require complex settlement patterns or cross-border compliance.

Market context: Industry developments around tokenized stocks and ETFs, as well as regulatory dialogues, continue to shape the pace at which platforms like Strium might scale. Notably, major exchange groups have publicly explored 24/7 trading and instant settlement via blockchain layers, underscoring a trend toward more fluid, cross-border access to tokenized assets.

Why it matters

The Strium project embodies a significant attempt to bring traditional asset classes into a regulated, on-chain settlement framework. By focusing on institutional-grade settlement infrastructure, the venture seeks to reduce counterparty risk, improve settlement latency, and enable more efficient dividend and royalty distributions within tokenized instruments. The emphasis on compliance-driven access—while also offering an open layer for broader participation—reflects a deliberate attempt to balance prudence with innovation as tokenization deepens its footprint in mainstream finance.

For investors and asset managers, Strium could lower the friction involved in trading tokenized foreign exchange and equities by consolidating liquidity, settlement, and custody under a single, regulated umbrella. The alliance between Startale Group and SBI Holdings brings together a technology-forward approach with deeply regulated financial infrastructure, potentially accelerating institutional comfort with on-chain representations of off-chain assets. If successful, the platform could serve as a blueprint for other cross-border tokenization efforts, including the layering of real-world assets onto blockchain rails while maintaining regulatory guardrails and governance standards.

From a market structure perspective, Strium signals how exchange-layer networks may evolve to support new forms of collateral, settlement, and asset representation. The project explicitly contends with the challenge of reconciling on-chain settlement with legacy financial systems, a task that has traditionally posed interoperability hurdles. Demonstrating robust performance under heavy transaction loads and ensuring resilience will be critical to gaining broader participation from custodians, asset managers, and regulated entities. The narrative around tokenized assets continues to hinge on the ability to deliver trust, transparency, and speed—a combination Strium targets to deliver through its PoC program.

Finally, the collaboration’s strategic components—bridging regulated finance with tokenized finance, exploring a yen-stablecoin framework, and engaging with regulators as markets scale—reflect a deliberate, phased approach to expansion. The plan to deploy a public testnet marks a tangible next step, offering researchers and practitioners a sandbox to stress-test settlement workflows and cross-network interoperability before commercial rollout.

What to watch next

• Public testnet launch and the results of the initial PoC demonstrations, including settlement throughput metrics and inter-network interoperability tests.
• Regulatory dialogues in Japan and other target markets as Strium expands its geographic footprint and moves toward live asset tokenization.
• Progress on tokenized representations of real shares and asset-backed tokens, and the criteria for access through compliant versus open layers.
• Updates on the yen-stablecoin initiative involving Shinsei Trust & Banking and SBI VC Trade, including any regulatory approvals and governance arrangements.
• Related infrastructure developments from traditional exchanges exploring tokenized platforms, including 24/7 trading and instant settlement capabilities.

Sources & verification

• Official statements from Startale Group and SBI Holdings regarding the Strium launch and its objectives.
• Strategic partnership announcement between Startale Group and SBI Holdings, dated August 2025.
• Details on the yen-stablecoin structure involving Shinsei Trust & Banking and SBI VC Trade.
• Public reports and announcements about NYSE/ICE exploring tokenized stocks and ETFs with 24/7 settlement capability.
• Sygnum’s report noting that tokenization is expected to gain mainstream traction in 2026.

Strium launches institutional-grade layer-1 for tokenized assets

Startale Group and SBI Holdings have unveiled Strium, a dedicated layer-1 blockchain engineered to support institutional participation in exchange-layer markets and the settlement of tokenized assets. The project targets three core asset classes—foreign exchange, tokenized equities, and real-world assets (RWAs)—and seeks to bridge the gap between traditional finance and on-chain ecosystems by enabling regulated dividend and royalty flows within a compliant framework. The platform’s architecture is described as an exchange-layer network designed to act as a scalable, interoperable substrate for institutional trading and settlement, rather than a consumer-oriented decentralized finance product.

In outlining the rationale behind Strium, Sota Watanabe, CEO of Startale Group, framed tokenization as an inevitable trend and highlighted equities tokenization as the next major market. The leadership intends Strium to function as a connective tissue between off-chain financial infrastructure and on-chain participants, thereby facilitating compliant distributions and payments that align with existing regulatory expectations. This emphasis on compliance is a throughline of the project, reflecting the participants’ intent to build a system that can operate within established financial markets while leveraging the advantages of tokenized representations.

The launch follows the two firms’ strategic partnership announced in August 2025, which laid the groundwork for joint development and resource sharing. The current phase includes proof-of-concept demonstrations designed to validate the platform’s core technical capabilities, particularly around settlement efficiency and cross-network interoperability. By focusing on these technical pillars, the teams aim to demonstrate that Strium can sustain high transaction volumes and complex settlement workflows typical of institutional trading environments.

Trading on Strium is set to begin with synthetic versions of U.S. and Japanese stocks and commodities. These synthetic instruments are described as derivative-like constructs rather than direct ownership of underlying assets. The approach serves as a controlled environment to refine settlement mechanics, governance protocols, and regulatory-compliant pathways before broader asset classes are introduced. As the platform scales, the plan is to extend tokenized representations to real shares and asset-backed tokens, contingent on identity verification and adherence to local regulatory regimes. An open layer is planned to accommodate participants who may not meet the stringent verification requirements, expanding access while preserving a compliant core.

The proof-of-concept phase is designed to stress-test settlement efficiency, resilience under peak loads, and interoperability with legacy financial systems and other blockchain networks. A public testnet—an essential step toward commercial deployment—will follow the initial demonstrations, providing a sandbox for independent researchers and potential users to assess operational readiness and security considerations. The project’s leadership emphasizes that regulatory engagement will evolve in step with geographic expansion, noting that discussions with Japanese authorities and other regulators will intensify as Strium moves from PoC toward market rollout.

From SBI Holdings’ perspective, the collaboration brings regulated financial infrastructure and licensed entities into the joint venture. Watanabe underscored that the group already participates in regulated digital-asset initiatives, including a yen-stablecoin concept involving Shinsei Trust & Banking and SBI VC Trade. While regulatory conversations remain a future priority, the emphasis remains on delivering a robust, compliant platform capable of supporting tokenized trading at scale. This approach reflects a broader industry pattern wherein traditional financial institutions seek to connect with blockchain-based settlement rails while maintaining governance and risk controls aligned with existing supervisory expectations.

Beyond Strium, the broader market context shows continued interest in tokenized finance across major exchanges. Notably, public disclosures indicate that the New York Stock Exchange and its parent company, Intercontinental Exchange, are pursuing a platform for tokenized stocks and ETFs with 24/7 access and instant settlement, signaling a shift toward faster, more flexible settlement workflows that could complement regulated tokenized products. Industry observers also point to a growing consensus among traditional institutions that tokenization will become more mainstream in the coming years, as highlighted by market analyses that anticipate broader adoption of blockchain-enabled infrastructure in traditional finance.

In sum, Strium represents a measured, regulatory-friendly foray into asset tokenization, with a clear focus on institutional usability and cross-system compatibility. If successful, the project could help standardize how tokenized FX, equities, and RWAs are traded and settled on a scalable, compliant platform, potentially accelerating the pace at which real-world assets enter the digital economy. The next steps—the public testnet, regulatory engagement, and the staged expansion into real assets—will be critical to determining whether Strium can deliver on its promise of a robust, institutionally viable tokenized asset ecosystem.