Bitcoin (BTC) crossed $80,000 for the first time since May on Tuesday, reaching a local high of $81,265 before retreating to $80,601. The flagship cryptocurrency’s recovery has seen it gain around 38% since falling to a low of $58,000 in late June.

Market watchers and analysts are cautiously optimistic about the rally translating into a bull market, primarily because of prevailing geopolitical uncertainty and inflation concerns.

Bitcoin Reaches Multi-Month High

Bitcoin (BTC) crossed $80,000 for the first time in 15 weeks, continuing its recent rally and gaining around 28% in little over a week. The flagship cryptocurrency’s rally has added $350 billion to its market capitalization as buyer interest returned after a period of subdued activity. The rally triggered market confidence, with the Bitcoin Fear & Greed Index rising to 81 on CoinMarketCap, firmly in “Extreme Greed” territory. While BTC’s rally has erased the losses accumulated since May, it now enters a zone that has previously witnessed heavy selling.

BTC is currently testing the resistance zone between $80,000 and $82,000. A close above these levels will confirm that demand persists. However, if the price fails to hold above $80,000, it could retrace towards $76,000, the nearest support zone. Several indicators support the short-term bullish structure. The Money Flow Index is currently above 77, indicating significant buyer interest. However, it is close to its overbought level, indicating chances of a reversal.

Analysts Cautiously Optimistic

While analysts and market watchers are optimistic, they believe the current rally is a catch-up trade rather than the beginning of a new bull cycle. Min Jung, associated researcher at Presto Research, stated,

“While it’s too early to call this a full-blown bull market, the move above $80,000 and the ETF inflows look like a catch-up trade since bitcoin has been lagging other risk assets for a while now.”

Jeff Mei, COO of BTSE, also struck a cautious note, highlighting tight liquidity conditions, inflation, and geopolitical uncertainty. Mei added they would consider a bull market only if BTC holds above $100,000, and the Federal Reserve cuts interest rates.

“I’d presume a bull market only after we sustain $100,000 for a month and the Fed signals rate cuts, which are still uncertain.”

Bitcoin’s Bull Case

However, some analysts believe Bitcoin’s rally and robust spot ETF inflows present a good case for a sustainable rally and bull market. Additionally, the broader cryptocurrency market has also rallied, with Ethereum (ETH), Ripple (XRP), and Solana (SOL) recording substantial double-digit increases. Justin d’Anethan, head of research at Arctic Digital, stated,

“The strength of the move, creating a large bullish engulfing candle on the daily, weekly, and potentially soon on the monthly, seems to hint at a radical trend change, from the boring accumulation to an ‘up’ market.”

d’Anethan added that the US Treasury’s decision to double bond buybacks is a strong indicator of easing monetary and liquidity conditions, which could fuel the rally further.

“More importantly, the key driver of this move (the U.S. Treasury decision to artificially lower rates by buying back bonds) sends a powerful and solid signal that monetary conditions and thus capital are easing up. It’s easy to see why BTC, which underperformed in the first half of 2026, would be the prime beneficiary of this.”

What Does Bitcoin Need For A Sustained Rally

Dominick John, analyst at Zeus Research, highlighted the macroeconomic conditions needed to sustain the current rally. According to the analyst, softer inflation numbers, lower treasury yields, and a weaker dollar were crucial to sustain the rally.

“A softer-than-expected reading could boost risk assets, while a hotter print could pressure yields and liquidity.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

India is reportedly preparing to test the issuance of tokenized corporate bonds, with a pilot expected to begin as early as September. The initiative centers on blockchain-based bond transactions that would be settled using India’s central bank digital currency (CBDC), according to Reuters.

REC Limited, a state-controlled power infrastructure finance company, is said to plan an initial bond issuance of less than 5 billion Indian rupees (about $57 million). Reuters reported the figure after consulting three sources familiar with the plans.

Key takeaways

• REC Limited is reportedly preparing India’s first tokenized corporate bond issuance as part of a September pilot.
• The pilot is expected to use India’s central bank digital currency for purchasing the tokenized bonds.
• Investors may need two separate digital accounts: a wholesale CBDC wallet and a new electronic securities wallet.
• India’s securities depositories are developing “DEMAT 2.0” to track bond ownership using distributed ledger technology.
• An initial three-month lockup is expected, with secondary-market trading targeted for development by December.

A pilot designed around CBDC settlement

Reuters says the tokenized bonds would be bought using India’s central bank digital currency, with participating investors required to hold two digital accounts. One would be a wholesale CBDC wallet provided by a bank, while the other would be a new electronic securities wallet that supports ownership records for the tokenized instruments.

This structure matters because it aims to connect two distinct parts of the financial plumbing: settlement (via CBDC) and securities ownership tracking (via a securities wallet built for tokenized assets). If the pilot proceeds as described, it would provide a practical test of whether wholesale CBDC can be used smoothly to move funds in tandem with tokenized bond transfers.

DEMAT 2.0 and the move toward distributed ownership records

A key component of the plan is the development of “DEMAT 2.0,” according to Reuters. The upgrade is being built by Indian securities depositories to record bond holdings using distributed ledger technology.

While tokenization is often discussed as a technical upgrade, the operational question is whether existing depository infrastructure can be adapted to manage tokenized securities reliably. The reported creation of DEMAT 2.0 suggests Indian market infrastructure providers are focusing on a more direct, ledger-based approach to tracking ownership—potentially reducing friction between issuance, transfer, and settlement workflows.

Reuters also reported that India’s central bank and securities regulator are involved: the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are working with relevant stakeholders on the initiative.

Who will participate and how trading could evolve

The Reuters report indicates the initial pilot may be limited to a select group of investors, and that details could be unveiled during an annual financial technology event in Mumbai in September.

In addition, Reuters says the tokenized bonds would carry a three-month lockup period at the start. It also reports that exchanges are expected to develop a secondary market for the tokenized bonds by December.

That timeline points to a phased approach. First comes controlled issuance and settlement for a narrow group of investors, followed later by efforts to enable broader liquidity through secondary-market trading. For market participants, secondary-market availability is often the difference between a tokenized instrument that remains largely experimental versus one that can become a functional part of credit markets. Investors will likely watch whether secondary trading is implemented as expected and whether it supports price discovery comparable to traditional bond venues.

Regulators and the next checkpoint

Reuters reported that Cointelegraph contacted the RBI, SEBI, and REC for comment on the plans but had not received responses at the time of publication. That leaves some specifics—such as eligibility criteria for participating investors beyond “a select group,” and the precise mechanics of the secondary market—unclear.

Even so, the core framework described by Reuters is clear: tokenized corporate bonds would be issued by a major state-controlled finance entity, settled using wholesale CBDC, and tracked through a new ledger-enabled securities wallet (DEMAT 2.0). The next question for investors and builders is whether the pilot demonstrates operational readiness at each step—issuance, settlement, custody/recordkeeping, and eventual transfer into a secondary market.

For readers following crypto’s relationship with regulated finance, the key watch items are whether India’s pilot launches on schedule in September, how tightly the lockup/secondary-trading plan is executed, and what the RBI and SEBI ultimately confirm about the infrastructure and investor access requirements.

Goldman Sachs has backed Coinbase and Robinhood shares as Bitcoin’s 26% weekly rally has lifted the cryptocurrency above $80,000 despite an extended decline in market trading volume.

Goldman Sachs expects crypto activity to recover

Goldman Sachs said in its latest Americas Brokerage and Crypto Industry report, circulated on X, that crypto trading volumes dropped 30% in July and another 21% in August. Analysts described the current slowdown as longer than the previous five volume contractions examined by the bank.

Trading activity has fallen by roughly 75% from its recent peak, according to the report. During the past week, however, the total cryptocurrency market capitalization has recovered about 21% to $2.8 trillion.

Goldman analysts said trading volumes could begin recovering if the market maintains its current valuation. Rising asset prices can bring more retail and institutional activity to exchanges, providing additional transaction revenue for platforms such as Coinbase and Robinhood.

Although the bank remains cautious about weak volumes, its view of the crypto sector has become more positive for the second half of 2026. The report pointed to stronger token prices, developing US regulations, and new products that allow trading platforms to earn revenue outside conventional spot markets.

Regulatory uncertainty remains the most common concern among institutional investors surveyed by the bank. According to Goldman, 35% of respondents identified uncertain rules as the largest barrier to entering the market, while 32% named regulatory clarity as the main catalyst that could encourage adoption.

Recent developments in Washington have addressed parts of that concern. The Securities and Exchange Commission has proposed Regulation Crypto Assets, a framework covering certain investment contracts involving digital assets.

As previously reported by crypto.news, the proposal includes one exemption allowing qualifying startups to raise up to $5 million over four years. A separate route would permit eligible issuers to raise as much as $75 million during a rolling 12-month period.

The SEC framework also includes disclosure requirements and a conditional safe harbor. It would not automatically exempt every cryptocurrency or token transaction from federal securities laws, and interested parties will receive 60 days to submit comments after the proposal completes the required publication process.

Coinbase and Robinhood receive buy ratings

Against that regulatory and market backdrop, Goldman Sachs maintained buy ratings on Coinbase Global and Robinhood Markets. Analyst James Yaro raised the bank’s Coinbase price target to $196 from $173, while Goldman set a $124 target for Robinhood.

Coinbase shares have gained more than 21% over the past week, while Robinhood has risen about 12%, according to the supplied market report. The advances followed Bitcoin’s recovery and renewed demand for US-listed companies connected to digital assets.

Goldman’s positive assessment was not based only on expectations for higher cryptocurrency trading. Analysts also pointed to the companies’ expansion into tokenized stocks, prediction markets, perpetual futures, and other financial products.

Such additions can provide income when spot cryptocurrency volumes weaken. They can also expose both companies to new regulatory questions involving derivatives, securities, and event contracts in the United States.

Coinbase’s prediction-market business reached $100 million in annualized revenue less than two months after its launch, according to a July examination of the company’s fastest-growing product. Sports-related contracts produced much of the early activity, although several state regulators have challenged whether certain contracts amount to unlicensed gambling.

Robinhood has also expanded its prediction-market operation while developing products tied to tokenized securities. Bernstein projected in June that Robinhood’s prediction-market revenue could increase from $150 million in 2025 to $586 million in 2026, supported in part by trading linked to the FIFA World Cup.

The brokerage launched Robinhood Chain in July as an Ethereum layer-2 network built for tokenized stocks and other financial assets. Eligible users can trade supported products outside normal US market hours, although tokenized instruments may not provide the ownership, voting, and shareholder rights attached to ordinary shares.

Coinbase, meanwhile, has pursued its “everything exchange” strategy by adding event contracts and time-based prediction markets. The company has also expanded its derivatives business, reducing some of its dependence on fees from spot crypto trading.

Goldman Sachs rebuilds its XRP ETF exposure

Goldman Sachs has also returned to XRP-linked exchange-traded funds after reporting no positions in the products during the first quarter.

The bank disclosed approximately $86.5 million across five spot XRP ETFs in its second-quarter Form 13F, according to figures cited in the supplied report. Its holdings covered funds offered by Franklin Templeton, Bitwise, Canary Capital, 21Shares and Grayscale.

Goldman previously reported $153.8 million across four XRP funds at the end of 2025. By the end of the first quarter, however, the bank had removed all reported XRP and Solana ETF positions from its filing.

A June review of Goldman’s XRP ETF exit found that the bank had also increased its positions in several crypto-related stocks during the first quarter. Its reported holdings included shares of Coinbase, Circle, Bullish, Strategy, and MARA Holdings.

Form 13F reports disclose certain long US securities positions held by qualifying institutional investment managers at the end of each quarter. They do not show every transaction made during the reporting period, identify whether positions are held for clients or the bank itself, or reveal trades opened and closed between filing dates.

The second-quarter disclosure therefore confirms that Goldman held the XRP ETF positions at the end of June. It does not establish that the bank made a directional bet on XRP or intends to maintain the holdings.

Apart from the reported XRP ETF positions, Goldman is adding crypto-linked products to its asset-management business. In August, the bank agreed to acquire Neos Investments for as much as $2.25 billion, subject to regulatory approval.

Neos manages more than $30 billion across 19 options-based income ETFs. Three of its products provide exposure linked to Bitcoin and Ethereum while using options strategies to generate income. The acquisition is expected to close during the first quarter of 2027 if regulators approve the transaction.

Bitcoin breakout supports crypto stocks

Bitcoin has risen about 26% over the past week, reaching an intraday high of roughly $81,255 before easing toward $79,000. The move has supported cryptocurrency-linked stocks and helped the total digital asset market recover from its recent decline.

As discussed in our previous Bitcoin analysis, the pullback followed a rapid rally and profit-taking around $81,000. Bitcoin briefly moved below the psychological $80,000 level after reaching its multi-month high, though it retained most of its weekly advance.

Trading volume increased by almost 75% over the latest 24-hour period, according to the supplied market data. Coinbase and Robinhood shares advanced alongside the cryptocurrency, giving Goldman’s stock recommendations additional attention as US investors sought regulated exposure to the market recovery.

The rally began after the US Treasury doubled the size of its long-dated bond buyback operations, which pushed Treasury yields lower and supported risk assets. President Donald Trump’s renewed call for Congress to pass the CLARITY Act also added regulatory momentum to the move.

Goldman CEO David Solomon has supported advancing the CLARITY Act even as banking groups have raised concerns about stablecoin rewards. A July report on the bill’s Senate vote prospects said Solomon backed federal market-structure legislation despite disagreements within the banking industry.

The legislation would establish rules for determining whether certain digital assets fall under SEC or Commodity Futures Trading Commission oversight. It faces a procedural Senate vote scheduled for Sept. 15, with lawmakers still divided over stablecoin incentives, consumer protections and provisions involving public officials’ crypto interests.

Investors are also awaiting Wednesday’s US personal consumption expenditures inflation report. The Federal Reserve’s preferred inflation measure can influence Treasury yields and expectations for interest rates, affecting Bitcoin and US-listed crypto shares, including Coinbase and Robinhood.

Bitcoin has entered the early stages of a new bull market after a 24% rally pushed key onchain and demand indicators into bullish territory, according to CryptoQuant.

The analytics firm’s Bull Score jumped to 80 from 30 over the past week, hitting its highest level since October 2025 as eight of the index’s 10 underlying indicators now flashing bullish.

Bitcoin (BTC) climbed above $80,000 during the rally, but CryptoQuant said a weekly close above its 365-day moving average, currently around $83,000, is needed to confirm the shift to a new bull market.

The shift has been supported by accelerating spot demand, while spot and futures demand are growing together for the first time since early October 2025, CryptoQuant said.

LMAX Group market strategist Joel Kruger also pointed to the May 2026 high of $82,820 as the next important level for Bitcoin.

“A clear break above that level would reinforce the view that a meaningful cycle low is now in place and shift attention towards the next major move through $100,000 and, ultimately, the 2025 record high,” Kruger told Cointelegraph.

At the time of writing, Bitcoin was trading around $79,000, according to CoinGecko data.

Bitcoin Bull Score Index. CryptoQuant report

Related: Bitcoin ETFs add $338M as six-day inflow streak hits $2.26B

Whales take profits as Bitcoin rally heats up

Despite the bullish signals, CryptoQuant warned that the rally may be overheated in the short term, pointing to rising trader profits, heavy profit-taking by whales and a spike in Bitcoin deposits to exchanges.

Traders’ unrealized profit margins have climbed to 20.5%, their highest since June 2025. CryptoQuant noted that Bitcoin fell about 30% after the metric reached 19% in early May, when BTC was trading near $82,000.

Short-term holder whales realized about $1.2 billion in profits between Aug. 20 and Aug. 22, including a record $614 million on Aug. 20, as Bitcoin traded near $78,000 to $79,000, according to the report.

Bitcoin exchange inflows also climbed to roughly 53,000 BTC, their highest since June, signaling that more coins are moving onto trading platforms where they could be sold.

Magazine: Korean bank taps Ripple for payments, Pakistan opens crypto licensing: Asia Express

Bitwise Asset Management has introduced automated investment portfolios built around Coinbase’s tokenized US stocks, aiming to give eligible non-US investors a way to follow model strategies while keeping the tokenized shares in their own non-custodial wallets. The product is designed to pair Bitwise’s portfolio construction with Glider’s automated execution and rebalancing.

In a Tuesday announcement, Bitwise said the portfolios will be deployed using Coinbase’s recently launched tokenized stocks. Glider will handle periodic trade adjustments to keep holdings aligned with Bitwise model portfolios, while users retain control of the underlying tokens.

Key takeaways

• Bitwise’s new automated portfolios rely on Coinbase tokenized US stocks and Glider’s rebalancing automation.
• Eligible investors outside the United States can participate while the tokenized assets remain in their non-custodial wallets.
• The initial lineup offers three strategies, including Mag7X (covering Apple, Nvidia, Microsoft, Tesla, and SpaceX) plus a robotics and AI leaders approach.
• Bitwise charges a 0.15% methodology access fee; trading and Glider platform fees are separate.
• Tokenized listed stocks have grown to $2.49 billion in aggregate value, with 2.25 million holders and $27.28 billion in monthly transfer volume, according to rwa.xyz.

How Bitwise’s automated stock portfolios work

Unlike traditional exchange-traded funds or managed funds where shares are held under a custodian, Bitwise says the tokenized stocks backing these portfolios stay in users’ non-custodial wallets. That custody model is central to the appeal for on-chain investors who want direct control over their assets.

The mechanics, as described in Bitwise’s announcement, split responsibilities between the portfolio designer and the automation layer. Bitwise sets the methodology for each model portfolio, while Glider manages the execution required to rebalance users’ holdings as the model’s target allocation changes. Users follow the preset strategies without having to manually trade each time allocations drift.

For investors, the fee structure is also explicit: Bitwise charges a 0.15% methodology access fee. The announcement clarifies that this cost does not include trading expenses or Glider’s platform fees, which means total carrying costs will depend on how frequently rebalancing occurs and on trading and execution pricing.

First set of strategies: from Mag7X to AI and robotics exposure

Bitwise’s launch begins with three strategies. One of them, Mag7X, focuses on large-cap technology and adjacent leaders. The initial model includes exposure to companies such as Apple, Nvidia, Microsoft, Tesla, and SpaceX.

Alongside Mag7X, the lineup is also described as covering “robotics and AI leaders,” reflecting Bitwise’s approach to selecting and weighting tokenized equities that fit those thematic criteria.

While the announcement confirms the initial holdings for Mag7X by listing the company examples above, it does not provide full allocation weights or portfolio construction rules in the excerpt provided. Investors considering these strategies should therefore review the specific portfolio methodology details associated with each model before subscribing.

Non-custodial equities and the DeFi pathway—plus its risks

Bitwise highlighted one key difference between tokenized stocks and conventional fund holdings: because users keep individual tokens in their own wallets, the assets may be usable in decentralized finance applications. The company said tokenized equities could, in principle, be used for lending or borrowing within DeFi—“subject to the risks of those protocols.”

This matters because tokenization can turn equities into programmable assets, potentially expanding use cases beyond buy-and-hold. However, it also introduces additional exposure points that don’t exist in traditional brokerage models, including smart contract risk, liquidation mechanics, and variability across lending markets.

For investors, the practical question is whether these portfolios are intended to be traded solely as automated stock baskets or whether the non-custodial model is also meant to integrate with DeFi strategies after rebalancing. Bitwise’s statement suggests the door is open, but it does not spell out a specific default DeFi workflow.

Momentum in tokenized equities and the timing with Coinbase’s Base launch

The Bitwise–Glider portfolios arrive shortly after Coinbase’s tokenized US stocks went live on Base. Earlier coverage from Cointelegraph noted that the Base rollout allows eligible non-US users to trade tokenized equities around the clock and to use them across DeFi applications.

That sequence is significant: tokenized equity availability is increasing on-chain, and now automated portfolio management is being layered on top. With Coinbase tokenized stocks acting as the underlying instrument, Bitwise’s approach can be read as part of a broader shift toward “traditional-style” portfolio strategies being implemented through blockchain-based infrastructure.

Separately, market activity indicators for the wider segment also point to growth. According to data compiled by rwa.xyz, tokenized listed stocks total $2.49 billion, up 5.18% over the past month. The same dataset reports 2.25 million holders and $27.28 billion in monthly transfer volume.

For readers tracking this sector, these figures provide context for why new portfolio products can gain traction: liquidity and participation appear to be expanding alongside the availability of tokenized assets. Still, the excerpt does not provide segment-level breakdowns for each issuer or venue, so investors should treat the aggregate numbers as directional context rather than a guarantee of execution quality for any specific portfolio.

As Bitwise and Glider roll out these automated strategies, the key variables to watch are the ongoing rebalancing cadence, total all-in costs (methodology plus trading and Glider fees), and whether the underlying non-custodial tokens will be integrated with more DeFi pathways over time. Equally important will be how reliably the model portfolios track their intended allocations as tokenized equity markets evolve.

World Liberty Financial has defended the demand behind its USD1 stablecoin after circulation surpassed $4 billion, rejecting claims that the token’s growth depends on the Trump family’s political connections.

World Liberty credits USD1 demand to institutional use

CNBC reported on Aug. 25 that World Liberty Financial CEO Zach Witkoff pointed to USD1’s adoption as evidence that the stablecoin has grown on its own merits rather than through favorable treatment from President Donald Trump’s administration.

With more than $4 billion in circulation, USD1 has become one of the largest dollar-pegged cryptocurrencies since its March 2025 launch. World Liberty says the token is backed by U.S. dollars held at financial institutions, U.S. government money market funds, and other cash equivalents.

“USD1 grew because institutions trust how it operates, and confidence at enterprise scale deserves the backing of federal supervision,” Witkoff said in a statement issued after the company received preliminary approval for a national trust bank.

One transaction accounts for a substantial part of USD1’s early adoption. In May 2025, Abu Dhabi-backed investment company MGX selected the stablecoin to settle its $2 billion investment in Binance, the world’s largest crypto exchange by trading volume.

Zach Witkoff announced the arrangement at the TOKEN2049 conference in Dubai, where he described USD1 as the “official stablecoin” for the deal. MGX had disclosed the Binance investment in March but did not initially identify the asset that would be used for settlement.

The transaction gave USD1 an immediate institutional use case shortly after its introduction. However, the involvement of MGX, Binance, and the Trump-linked company also became a focus for Democratic lawmakers examining foreign financial interests connected to World Liberty.

Binance deal helped USD1 reach the top stablecoin ranks

Although World Liberty cites the MGX transaction as evidence of market adoption, the token’s concentration on Binance has prompted questions about how widely that demand is distributed.

A February Forbes report based on Arkham Intelligence data found that Binance-controlled wallets and customer accounts held around $4.7 billion in USD1 at the time, representing nearly 87% of its $5.4 billion supply. As crypto.news previously reported, analysts cited in that report said the concentration could create liquidity, governance, and counterparty risks.

USD1 circulation has since fallen from the level cited in February, though World Liberty’s latest disclosure places the total above $4 billion. Stablecoin supply can rise or fall as authorized participants mint tokens or redeem them for the assets backing them.

Beyond Binance, World Liberty lists USD1 on U.S.-accessible exchanges including Coinbase, Kraken and Crypto.com. The token is also available through Bybit, OKX, Bitget, Gate, KuCoin, and MEXC, along with decentralized exchanges such as Uniswap and PancakeSwap.

World Liberty has deployed USD1 across several blockchain networks to support payments, trading and settlement. Its exchange availability, however, does not by itself show how much supply or trading activity is spread beyond Binance.

The company has also used promotional programs to increase adoption. Binance announced a campaign in January that offered $40 million worth of WLFI tokens to eligible USD1 holders, followed by a transfer of roughly $40 million in WLFI from the project to the exchange.

USD1 bank still requires final OCC authorization

Regulatory access has become another part of the debate after the Office of the Comptroller of the Currency granted preliminary conditional approval to World Liberty Trust Company on Aug. 14.

World Liberty submitted the application through WLTC Holdings LLC in January. Under the proposed structure, the trust company would directly issue and redeem USD1, manage its reserves, and provide digital asset custody services to institutional customers.

BitGo currently performs the issuance, redemption, and reserve custody functions. Moving the operations to World Liberty Trust would bring them under one federally supervised entity if the OCC grants final authorization.

Preliminary approval does not permit the trust company to begin operating. The OCC approval conditions require World Liberty Trust to maintain at least $20 million in eligible capital, submit an updated operating plan, and appoint a qualified internal audit manager.

The proposed entity would operate as a national trust bank rather than a conventional commercial bank. It would not accept standard retail deposits, provide checking accounts, or issue loans. Its permitted activities would focus on custody, reserve management, stablecoin settlement, and other fiduciary services.

World Liberty would also need OCC clearance before making major changes to its business plan. Until all preopening requirements are satisfied, the regulator can modify, suspend, or withdraw its preliminary approval.

Trump ties keep World Liberty under political scrutiny

World Liberty’s ownership and foreign transactions have drawn attention from Democratic lawmakers who argue that Trump’s financial interest in the company creates a conflict with his administration’s role in regulating digital assets.

An entity affiliated with Trump and members of his family owns about 38% of World Liberty’s holding company, according to public disclosures cited by Reuters. Zach Witkoff is also the son of Steve Witkoff, Trump’s special envoy and a co-founder emeritus of the crypto company.

The White House has said the president’s assets are held in a trust managed by his children. It has also maintained that Trump does not participate in managing World Liberty while serving as president.

Questions intensified after reports that Aryam Investment 1, an Abu Dhabi-based vehicle backed by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, acquired a 49% stake in World Liberty for $500 million. Sheikh Tahnoon also chairs MGX, the company that later used USD1 for the Binance investment.

In June, Democratic senators requested hearings into the reported transaction and asked whether it influenced U.S. decisions involving arms sales and access to advanced artificial intelligence chips. The lawmakers also questioned whether federal agencies had conducted a national security review of the investment.

The OCC addressed some foreign ownership concerns in its approval decision, stating that non-U.S. investors were not considered principal shareholders of the proposed trust bank. Several investors signed passivity agreements promising not to control or influence the institution’s operations.

Eric Trump signed one such commitment as president of DT Marks, a Trump family-linked investment vehicle. Under the OCC’s conditions, voting interests of 10% or more must remain passive, while voting power above 9.9% would be exercised through a proportional proxy.

World Liberty Trust plans to operate with segregated customer assets, independent reserve management, anti-money laundering controls, and sanctions screening. OCC examiners would supervise the institution after it meets the remaining conditions and receives permission to open.

Zach Witkoff is expected to chair the proposed bank’s five-member board. Scott Alper and Robert Witkoff would serve alongside independent directors Jeffrey Weiner, the former CEO of accounting firm Marcum, and Erin Baskett, a member of the FINRA Board of Governors.

Strategy’s widely watched Bitcoin treasury may be more exposed to financing constraints than to a direct price crash, according to an analysis by Regime Intelligence that reframes what can actually force the company to change course. The key risk, the report argues, is not an automatic liquidation tied to Bitcoin’s volatility, but the chance that capital-market access weakens enough to make Strategy’s ongoing debt and preferred obligations harder to fund.

In Regime Intelligence’s stress test, Strategy’s 840,447 BTC holdings would still cover the company’s convertible notes even if Bitcoin fell sharply. But the analysis also highlights that Strategy must keep paying roughly $1.76 billion in annual preferred dividends and interest regardless of Bitcoin price—meaning prolonged funding pressure could drive greater reliance on cash reserves and Bitcoin sales.

Key takeaways

• Regime Intelligence says Strategy’s core vulnerability is continued dependence on capital markets, rather than margin-like liquidations triggered by Bitcoin price drops.
• In the firm’s test, Bitcoin would need to fall about 96% before Strategy’s BTC holdings and reserves would no longer cover its convertible notes.
• Even if the BTC coverage threshold holds, Strategy still faces about $1.76 billion of annual preferred dividends and interest that must be serviced through cash generation and financing.
• The report points to a “flywheel” problem: if the company’s share price and cash position weaken at the same time, raising capital could become more expensive or difficult.

Financing risk beats price crash as the central threat

Regime Intelligence’s report argues that many investors have treated Strategy’s structure as if its Bitcoin holdings function like collateral in a typical margin loan. That framing, the analysis says, misses a critical feature of the balance sheet: Strategy’s debt does not behave like a conventional BTC-backed margin facility that would prompt immediate liquidation when prices fall.

Instead, the company’s ability to keep accumulating—and to avoid selling BTC to meet non-Bitcoin obligations—depends on whether it can continuously raise new capital. According to the report, Strategy’s BTC stash sits behind roughly $22 billion in debt and preferred claims, so the accumulation model requires uninterrupted access to funding channels.

The stress test produced a striking asymmetry. It suggests that Strategy’s convertible notes would remain covered until Bitcoin drops by roughly 96%—a level far deeper than most market drawdowns. But once that “BTC coverage” buffer is no longer sufficient, the risk shifts in an abrupt way: Strategy still must service large fixed charges, and without a reliable flow of external financing, it may have to lean harder on reserves and, potentially, sales.

As Regime Intelligence’s author Sherif Saad summarized it, Strategy’s “principal challenge” is sustaining the cycle that covers its annual debt and preferred charges. He also told Cointelegraph that investors should monitor Strategy’s preferred share price and its cash reserves, which currently cover about 2.6 times its annualized charges.

What would break the “flywheel”

The report’s most practical message is not about how far Bitcoin could fall in a single scenario, but about how conditions could deteriorate together across Strategy’s equity and funding economics. Saad warned that risk increases materially if a prolonged BTC decline coincides with declines in Strategy’s share pricing and mNAV (market value of net assets).

In that environment, capital raising may not just become slower—it can become “progressively more difficult or expensive,” according to Saad. That matters because Strategy’s accumulation strategy relies on the company continuing to secure funding while its BTC treasury remains strong enough to support the broader financial structure.

Regime Intelligence also ties the strategy’s near-term resiliency to its liquidity posture: if financing conditions worsen, the company could be forced to use more of its reserves and sell more Bitcoin to meet obligations. The analysis does not claim a specific trigger that guarantees a reversal, but it makes clear that financing stress can propagate into the treasury plan even when direct BTC collateral coverage still looks robust.

Strategy’s “never-sell” debate returns

Much of the debate around Strategy has long focused on whether it will sell Bitcoin at all—especially after executive chairman Michael Saylor spent years promoting a “never-sell” approach. That stance has been tested this year as Strategy reportedly began selling BTC to handle other business obligations.

According to earlier reporting cited in the article, Strategy has sold Bitcoin four times since May, including a sale of 1,690 BTC. Proceeds from those sales have been directed toward purposes such as funding preferred stock dividends, share repurchases, and building up its US dollar reserves.

Despite those sales, Strategy CEO Phong Le has reminded investors that the company is still net accumulating. He told CNBC earlier this month that Strategy has accumulated “about 25 times more” Bitcoin than it has sold this year, and he indicated the company plans to resume Bitcoin purchases later this year.

For investors, the tension is straightforward: a “hold-through-volatility” thesis can coexist with periodic BTC sales—but the pace and necessity of those sales will increasingly depend on external financing conditions. Regime Intelligence’s analysis suggests that even if Bitcoin does not trigger immediate liquidation mechanics, the company can still be pressured into changing its behavior when the cost and availability of capital markets deteriorate.

Where Strategy’s Bitcoin treasury stands now

After Bitcoin’s recent recovery, Strategy’s BTC holdings have regained substantial value. The analysis notes that its Bitcoin stash is now worth $66.7 billion, exceeding the company’s $63.36 billion cost basis, based on data from BitcoinTreasuries.NET.

This matters because the report’s argument is largely about survivability under stress: as long as the treasury remains meaningfully above the company’s claims, direct pressure from Bitcoin’s price may be less immediate than pressure from liquidity and financing. But if market conditions shift such that Strategy can’t access capital on acceptable terms—especially if its equity-linked indicators weaken simultaneously—the “accumulation” narrative can start to give way to reserve management and further BTC sales.

As these dynamics play out, readers should watch how Strategy’s preferred share pricing and cash reserves evolve, and whether the company’s ability to raise capital remains stable during any extended downtrends in Bitcoin. The core uncertainty is not the short-term direction of BTC alone, but whether financing conditions can stay supportive long enough for Strategy’s treasury-driven model to continue functioning as intended.