Coinbase said Tuesday it had chosen Centrifuge as its preferred tokenization infrastructure and made a strategic investment in the firm.

Under the deal, Centrifuge is positioned to serve as the default issuance layer for tokenized assets across Coinbase’s ecosystem, including products on Base. The first wave of institutional assets is expected to launch on Base in the coming weeks, the firms said.

Coinbase’s push into tokenized capital markets spans ETFs, credit and structured products. The Centrifuge deal gives Coinbase an infrastructure partner for outside asset managers that want to issue products onchain, though it doesn’t appear to be exclusive.

Coinbase Asset Management said last week it would issue its CUSHY stablecoin credit fund through Superstate’s FundOS platform, and in March tapped Apex Group to tokenize a share class of its Bitcoin Yield Fund on Base. Coinbase Ventures was also already an investor in Centrifuge, having backed a 2022 strategic round.

Centrifuge powers onchain strategies for Apollo, Janus Henderson and S&P Dow Jones Indices. It crossed $1 billion in total value locked in mid-2025 and now has $1.66 billion, according to DeFiLlama data.

The deal comes as tokenized real-world assets have grown to roughly $27 billion onchain. Tokenized treasuries and other fixed income products account for about $16 billion of that.

The RWA sector is currently led by Securitize and Ondo Finance, along with leading stablecoin issuer Tether and Circle via their tokenized gold product and money market fund, respectively.

“What matters now isn’t getting assets onchain, it’s getting the right assets onchain in the right way,” Centrifuge CEO Bhaji Illuminati said.

Coinbase CEO Brian Armstrong had announced earlier Tuesday that the exchange was laying off 14% of its employees, saying AI tooling had made them redundant.

European policymakers are weighing how far tokenization can extend Europe’s payments fabric, signaling that the euro area could move beyond traditional rails to a tokenized settlement layer in the coming years. A senior Italian central bank official outlined tokenized SEPA as an important area for reflection, while the Eurosystem advances two parallel tracks aimed at linking distributed ledger technology (DLT) with central bank money and existing settlement rails.

In a speech delivered at the Digital Assets and Monetary Policy Transmission workshop in Rome, Bank of Italy Deputy Governor Chiara Scotti described a tokenized extension of SEPA as a pathway with clear potential due to Europe’s scale, shared standards and interoperability. She underscored that Europe’s current payments framework already offers a foundation that could support broader tokenization of settlement, with careful attention to governance, risk controls and public money as an anchor. The speech was published in early May 2026, and Scotti framed the topic as one that deserves ongoing policy consideration.

Key takeaways

• Europe is actively exploring a tokenized extension of SEPA as part of its broader digital money agenda, with emphasis on interoperability and scale.
• The Eurosystem is preparing a pilot called Pontes to connect market DLT platforms with TARGET Services, enabling settlement in central bank money, with completion targeted for the third quarter of 2026.
• ECB’s Appia project represents a longer-term roadmap for Europe’s tokenized financial ecosystem, aiming for a 2028 conclusion and addressing how tokenized deposits, stablecoins and central bank money can coexist.
• New ECB analyses warn that widespread stablecoin adoption could lead to retail deposit outflows, potentially altering banks’ funding profiles and raising liquidity concerns.
• Policy makers are signaling that tokenized deposits and stablecoins will require tokenized central bank money as a public settlement anchor to scale Europe’s tokenized finance system.

Two tracks shaping Europe’s tokenized future

The first track centers on practical settlement experiments that could pave the way for broader digitization of money. The Pontes project, described by Eurosystem officials as a distributed ledger settlement initiative, is designed to bridge market DLT platforms with the central banking settlement layer (TARGET Services) and finalize payments in central bank money. The aim is to test how a multi-DLT ecosystem could operate with a common settlement anchor, addressing questions of interoperability, security and operational risk. Officials expect a pilot completion in the third quarter of 2026, signaling a concrete milestone in Europe’s exploration of tokenized settlement rails.

A separate, longer-term effort is Appia, the European Central Bank’s roadmap for tokenized finance that envisions a more comprehensive framework for tokenized deposits, stablecoins and central bank money. Appia is not a single implementation but a strategic program that seeks to define how tokenized financial assets will interact with existing eurozone monetary infrastructure. The roadmap, with milestones through 2028, reflects a deliberate approach to balancing innovation with financial stability and monetary sovereignty.

The ECB has also underscored the importance of safeguarding monetary sovereignty in the face of rapid tokenization. A 2026 ECB statement notes concerns about non-euro stablecoins, citing the potential for serious consequences if euro-denominated settlement assets are displaced by foreign stablecoins. The central bank has repeatedly emphasized that any broad shift toward digital assets must be anchored, supervised and harmonized with trusted public money.

These themes sit alongside ongoing policy work and research. In March 2026, the ECB published papers highlighting risks associated with deploying stablecoins at scale. One working paper emphasized a “deposit-substitution mechanism,” where funds migrate from retail bank deposits to digital assets, a development that could intensify funding volatility for banks. A later focus paper reiterated concerns that stablecoin adoption could impact the stability and resilience of the traditional banking model if not accompanied by robust settlement rails and risk controls.

Stability concerns and policy context

The ECB’s public-facing analysis aligns with a broader European hesitation about stability and governance in a tokenized money regime. While tokenization offers potential efficiency gains and cross-border interoperability, policymakers warn that widespread use of stablecoins and other digital assets could complicate bank funding structures and monetary policy implementation if settlement assets or payment rails become fragmented or if retail deposits migrate rapidly into private digital money. The discussion continues to blend technical experimentation with macroeconomic prudence, a balance policymakers describe as essential for Europe’s monetary sovereignty.

Readers should note that European policymakers have not dismissed innovation; instead, they are pursuing a staged approach. The Pontes pilot seeks to demonstrate how market participants can operate across multiple DLT environments while using central bank settlement rails. Appia, by contrast, is a forward-looking framework aimed at ensuring tokenized assets, deposits and currencies can scale without compromising financial stability. Together, they signal a strategy of incremental adoption, paired with guardrails and cross-border standards that can help fuel adoption while preserving trust in euro-denominated money.

In related coverage, Cointelegraph highlighted that UBS is already engaging in a Swiss franc stablecoin sandbox with five banks, illustrating how large financial institutions are actively testing tokenized solutions within controlled settings. The European debate, however, remains focused on ensuring that tokenized money strengthens rather than undermines monetary sovereignty and financial stability across the euro area.

The March 2026 statements from Piero Cipollone, a member of the ECB’s Executive Board, reinforced this view, noting that tokenized deposits and stablecoins should be anchored by tokenized central bank money to enable a scalable European tokenized finance system. This framing aligns with the broader policy objective of maintaining strong public settlement rails as the private sector experiments with new forms of digital money.

In sum, Europe stands at a crossroads where tokenization could reshape payments, settlement and liquidity management, while policymakers seek to preserve monetary sovereignty and financial stability. The Pontes pilot and Appia roadmap are not mere experiments; they are signaling a measured path toward a digitized euro that integrates public money, tokenized assets and cross-border interoperability.

For market participants, the implications are clear: investors, users and builders should monitor the Pontes pilot’s outcomes, the Appia timeline and any policy updates on tokenized money. The balance between innovation and resilience will shape how quickly euro-denominated tokenized finance can scale, and how central banks coordinate with private sector platforms to ensure secure, efficient settlement in the years ahead.

As the Eurosystem continues to publish milestones and the ECB advances its strategic roadmap, observers should watch for concrete technical specifications, governance frameworks and cross-border alignment that will determine how tokenized money interacts with traditional banking products, stablecoins and cross-border payments. The coming quarters are likely to reveal whether Europe can usher in a tokenized settlement regime that preserves monetary sovereignty while enabling broader financial innovation.

Readers should stay tuned for further updates on Pontes progress, Appia milestones and any policy clarifications from the Bank of Italy and the ECB as Europe tests the boundaries of tokenized monetary infrastructure.

Ripple (XRP) is trading just above $1.40 on Tuesday, showing gradual momentum despite lingering macro uncertainty.

The token, alongside the broader crypto market, has remained resilient even as tensions in the Middle East persist and the US–Iran ceasefire faces renewed pressure.

Risk appetite has stabilized in recent weeks, with the Crypto Fear & Greed Index rising to 50 from 40 a day earlier, reflecting a shift toward more neutral sentiment.

ETF inflows signal cautious optimism

Investor interest in XRP spot ETFs remains mixed but constructive. US-listed products recorded modest inflows of $3.87 million on Monday following subdued activity at the end of last week, suggesting a cautiously bullish short- to medium-term outlook.

Cumulative inflows have now reached $1.29 billion, with total assets under management at $1.07 billion. Continued ETF demand remains a key pillar for sustaining positive sentiment and supporting the case for a broader uptrend.

In the derivatives market, momentum remains muted. Open Interest (OI) in XRP perpetual futures edged up slightly to $2.60 billion from $2.50 billion the previous day.

However, this is still well below the $10.94 billion peak seen in July, when XRP reached its all-time high of $3.66. The divergence highlights the importance of stronger retail participation to drive a more meaningful rally.

Technical outlook: XRP faces a key resistance zone

The XRP/USD 4-hour chart remains bearish and efficient. XRP is trading just below the 50-day EMA at $1.41 and remains under the 100-day and 200-day EMAs at $1.51 and $1.74, indicating that upside attempts are still being capped.

Momentum indicators show mixed signals. The Relative Strength Index (RSI) sits at 60, pointing to mild bullish pressure but largely consistent with consolidation.

Meanwhile, a contracting negative MACD histogram suggests bearish momentum is fading.

A decisive daily close above the $1.51 resistance zone—aligned with the 100-day EMA and broader downtrend—would be needed to shift sentiment and open the path toward $1.74.

On the downside, immediate support lies at $1.39, followed by the monthly open near $1.37.

Key Highlights

• Digi Power X (DGXX) shares climbed approximately 39% following the announcement of a Master Services Agreement with Cerebras Systems
• The partnership involves developing a 40 MW AI-focused data center campus located in Columbiana, Alabama
• The 10-year agreement carries an estimated value of $1.1 billion, potentially expanding to $2.5 billion with renewal options
• Development will occur across two phases, with the first phase scheduled for completion by December 15, 2026
• Revenue generation is anticipated to commence in late 2026, reaching full capacity during Q1 2027

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Shares of Digi Power X (DGXX) experienced a substantial rally of approximately 39% on Tuesday following the company’s disclosure of a significant colocation partnership with AI hardware manufacturer Cerebras Systems.

Digi Power X Inc., DGXX

The partnership encompasses the construction of a specialized 40-megawatt AI data center campus situated in Columbiana, Alabama. Under the initial 10-year arrangement, the contract is estimated at roughly $1.1 billion.

Including potential renewal periods, the total contract value may climb to $2.5 billion. This arrangement provides Digi Power X with predictable revenue streams starting from the first day of operational service.

The project is structured in two distinct development phases. The first phase encompasses 15 MW of IT capacity, while the second phase will contribute an additional 25 MW, culminating in a combined 40 MW capacity.

The campus infrastructure will adhere to Tier III standards. These specifications are tailored explicitly for the intensive thermal and power density requirements of cutting-edge AI accelerator technology—precisely the type of computational workloads that Cerebras deploys.

Construction activities for Phase 1 are commencing without delay. Notably, Digi Power X will self-finance the first phase construction, a significant consideration given the project’s magnitude.

The company has already finalized the on-site electrical substation for Phase 1. Grid connectivity has been secured, and a power supply agreement with Alabama Power is fully executed.

The Columbiana location was selected based on its robust power infrastructure, favorable regulatory climate, and strategic access to major fiber optic routes throughout the southeastern region. Digi Power X maintains ownership of the property hosting the site.

Projected Revenue Schedule

Phase 1 aims for a Ready-for-Service milestone of December 15, 2026. Complete buildout encompassing both phases is projected for completion by the conclusion of Q1 2027.

Revenue streams from this partnership are forecasted to begin in the latter part of 2026. Maximum revenue generation is expected to align with the finalization of the complete 40 MW infrastructure deployment.

Strategic Value for Cerebras Systems

From Cerebras’ perspective, this agreement secures guaranteed data center infrastructure from the initial service date. Such operational certainty is critical for an organization expanding frontier AI computational capabilities.

Cerebras Systems has established its reputation through large-scale AI processor technology and computing platforms. The Columbiana facility was characterized as being engineered “from the ground up” to address power density and reliability specifications.

The partnership structure delivers mutual advantages. Digi Power X obtains a contracted, long-term revenue pipeline. Cerebras acquires dedicated, custom-designed capacity without undertaking real estate development responsibilities.

DGXX is additionally listed on Cboe Canada under the DGX ticker symbol, which rose approximately 38.93% on the announcement.

The equity was trading higher by roughly 39% as of Tuesday afternoon in response to the disclosure.

The chief marketing officer (CMO) at Crypto.com, Steven Kalifowitz, who has overseen more than $1 billion spent on partnerships and high profile campaigns in the past several years, is leaving the company.

Crypto.com spokesperson said Kalifowitz will be moving on from his role as CMO, effective June 30, and will then continue on as advisor to the CEO.

“Steven has been a significant contributor to the effective mainstreaming of the Crypto.com brand, from introducing Crypto.com on a global stage through our first brand film in 2021, to striking strategic partnerships and sponsorships that have helped connect Crypto.com to millions of consumers,” the spokesperson said.

Kalifowitz has been CMO at Crypto.com for close to six years, during which time the company surged in recognition from just being an app to a global brand.

During his tenure, Crypto.com has invested over $1 billion in partnerships, including a $700 million, 20-year deal for naming rights to the Crypto.com Arena (formerly Staples Center), and a $100 million campaign with Matt Damon.

The crypto buying platform also has high-profile partnerships with Formula 1 and the Ultimate Fighting Championship (UFC), an American mixed martial arts promotion company based in Las Vegas.

Kalifowitz was previously a brand manager at Twitter for four years, and president of real estate platform Localize.city.

Founded in 2016, Singapore-based Crypto.com allows users to buy and sell more than 200 cryptocurrencies, as well as the ability to earn rewards by depositing crypto or using its Visa card.

A Puerto Rican man is suing Coinbase after he accused the exchange of wrongly withholding crypto that was apparently stolen in a $55 million draining hack.

The suit, which was filed on Monday in a California court, claims that the man, referred to as “D.B.,” was a victim of a hack on August 20, 2024. 

The victim apparently lost his crypto after clicking on a malicious link that spoofed Ethereum DeFi management tool “DefiSaver.” He then unknowingly authorized a smart contract permission that gave the thieves control of his crypto wallets.

From here, they allegedly stole his funds, made up of stablecoin DAI, and used crypto mixing services like Tornado Cash to launder the funds before eventually depositing them on Coinbase. 

Coinbase froze the funds held in a retail account after the plaintiff’s agents, Zero Shadow and Five Stones, traced the funds and requested their freezing. The exchange, however, refused to return the crypto unless a court order was secured. 

The suit further alleges that, “While Coinbase acted reasonably in freezing the stolen cryptocurrency, its refusal to return the frozen funds to plaintiff became unreasonable when plaintiff provided sworn proof that he is the rightful owner and Coinbase refused to act.”

Coinbase lawsuit matches up with $55M DAI hack

The victim’s name, the total amount stolen, and other details are redacted from the lawsuit, but the certain events appear to line up with reports around August 20 and 21 covering a $55 million DAI draining incident. 

🚨 5 hours ago, a victim lost $55.43M in DAI after signing a phishing transaction targeting its DeFi Saver Proxy.

How did this happen? 👇 pic.twitter.com/YyGHf5k9pg

Advertisement

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) August 21, 2024

Read more: Crypto hackers snatch over $1B in 68 incidents this year

These include details like the “Inferno Drainer” malware used in the attack, the theft of the DAI, and the manipulation of the smart contract.

Crypto analysts at the time noted that the victim had acted “carelessly” when signing the transaction, and that he attempted to reverse the transaction upon realising that it was malicious.

The lawsuit, which describes the hack as “sophisticated,” is suing Coinbase on five counts, including unjust enrichment, and is seeking restitution for any profits the exchange may have accrued from holding the funds. 

It also seeks a court order declaring that the plaintiff is the rightful owner, an order directing Coinbase to return the funds, and the “imposition of a constructive trust.”

The lawsuit is also suing John Doe, a legal name used to highlight the currently unknown hacker, or hackers, who stole the crypto. They face seven counts, including fraud, theft, and racketeering.

The plaintiff claims to have found one suspect, a Ukrainian called Oleksiy Oleksandrovych Goreliikhin, who allegedly played a significant role in laundering the funds. 

Protos has reached out to Coinbase for comment and will update this piece should we hear anything back.

Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.

Quick Summary

• PayPal delivered Q1 adjusted EPS of $1.34, surpassing the analyst consensus of $1.27
• Quarterly revenue reached $8.35 billion, climbing 7% from last year and beating the $8.1 billion Street projection
• Newly appointed CEO Enrique Lores unveiled a reorganization into three distinct business divisions
• Q2 adjusted EPS is projected to fall 9%, significantly worse than the 4% decline Wall Street anticipated
• Management aims to achieve minimum gross run-rate savings of $1.5 billion within the next two to three years

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PayPal (PYPL) shares climbed 0.9% during premarket hours on Tuesday following the digital payments giant’s first-quarter performance that exceeded Wall Street expectations, although cautious second-quarter projections limited the upward momentum. Prior to the earnings release, the stock had already declined 14% year-to-date.

PayPal Holdings, Inc., PYPL

The company’s adjusted earnings per share registered at $1.34, narrowly surpassing the FactSet consensus projection of $1.27. Quarterly revenue hit $8.35 billion, representing a 7% year-over-year increase and exceeding Wall Street’s $8.1 billion target.

Total payment volume expanded 11% to reach $464 billion. The number of payment transactions increased 7% to 6.5 billion. The active account base held steady at approximately 439 million, indicating that revenue growth stems from higher spending among current users rather than customer acquisition.

From a profitability perspective, GAAP net income dropped 14% to $1.11 billion. The GAAP operating margin compressed to 17.8%, declining roughly 182 basis points year-over-year.

Free cash flow totaled $903 million for the quarter. The company allocated $1.5 billion for shareholder returns via stock buybacks and announced a quarterly dividend of $0.14 per share, scheduled for distribution on June 25, 2026.

New CEO Drives Organizational Overhaul

The quarterly results coincided with a major restructuring initiative unveiled by newly installed CEO Enrique Lores. PayPal is reorganizing its operations into three core business segments: checkout, consumer financial services, and payment processing.

The digital payments provider also introduced a cost-reduction program focused on organizational simplification and accelerated artificial intelligence integration, with a target of securing at least $1.5 billion in gross run-rate savings across the next two to three years.

“We are taking deliberate steps to sharpen our strategy, simplify our organization, and improve both our growth trajectory and cost structure,” Lores stated.

Lores assumed the chief executive position earlier this year with a clear directive to revitalize the struggling payments platform.

Second Quarter Forecast Falls Short

While the first-quarter results impressed, the company’s forward-looking statements concerned market participants.

PayPal projected a 9% contraction in adjusted EPS for the second quarter. Wall Street had been modeling a decline around 4%. The variance represents a substantial miss relative to expectations.

Full-year 2026 projections remained unchanged. Management continues to anticipate a mid-single digit decline in GAAP EPS and non-GAAP EPS ranging from a low-single digit decrease to marginally positive growth.

Executives characterized the first quarter as a “solid start” while acknowledging what they termed a challenging operating landscape.

The board approved a $0.14 per-share cash dividend for payment on June 25, 2026.

European financial institutions should assess whether the Single Euro Payments Area (SEPA) can be extended into tokenized payments, Bank of Italy Deputy Governor Chiara Scotti said, as policymakers look for ways to keep euro-denominated settlement central to digital finance.

Scotti called a tokenized extension of SEPA an “important area for reflection” during a Monday speech at the Digital Assets and Monetary Policy Transmission workshop in Rome, saying Europe’s existing payments framework offers scale, shared standards and interoperability.

Her comments come as the Eurosystem prepares a pilot for Pontes, a distributed ledger technology settlement initiative designed to link market DLT platforms with TARGET Services and settle transactions in central bank money. The pilot is expected by the third quarter of 2026.

The European Central Bank (ECB) is also developing Appia, a longer-term roadmap for Europe’s tokenized financial ecosystem that is expected to conclude in 2028, as policymakers weigh how tokenized deposits, stablecoins and central bank money should coexist.

The ECB said it was exploring ways to bring central bank money onto DLT due to concerns over the adoption of a non-euro stablecoin, which may have “serious consequences for Europe’s monetary sovereignty,” such as diminishing the euro’s role and creating a dependency on foreign settlement assets.

Banca d’Italia, ECB, EABCN, and CEPR Workshop on‘Digital Assets and Monetary Policy Transmission.’ Source: Bank of Italy

ECB says stablecoin adoption may shift bank deposits

The ECB has previously outlined concerns related to widespread stablecoin adoption.

In a report published in November 2025, the ECB said that widespread stablecoin adoption may see households replace some of their bank deposits with stablecoin holdings, leading to significant bank deposit outflows.

“Significant growth in stablecoins could cause retail deposit outflows, diminishing an important source of funding for banks and leaving them with more volatile funding overall.”

In a working paper published on March 4, 2026, the ECB highlighted further risks, including that stablecoin adoption induces a “deposit-substitution mechanism, whereby funds shift from retail bank deposits to digital assets.”

Related: UBS partners with five banks for Swiss franc stablecoin sandbox

Later on March 23, Piero Cipollone, a member of the ECB’s Executive Board, said that both tokenized deposits and stablecoins need tokenized central bank money as a public settlement anchor for scaling Europe’s tokenized financial system, Cointelegraph reported.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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