Trump-backed World Liberty Financial has introduced a new proposal to overhaul its governance through a new Governance Staking System designed to incentivize long-term participation, redirect arbitrage profits to committed token holders, and deepen adoption of its USD1 stablecoin.

World Liberty Financial aims to redirect USD1 arbitrage profits to token stakers

Under the proposal, holders of unlocked WLFI (WLFI) tokens will be required to stake their tokens in order to participate in governance voting. Staking will carry a minimum lock-up period of 180 days, with voting power determined by a non-linear square root formula that factors in both the amount staked and remaining lock duration.

Governance rights will be dynamic and non-transferable, adjusting as lock-ups decline.

Active participation is central to the design. Stakers must vote at least twice during their lock-up period to qualify for base staking rewards, targeted at roughly 2% APR and paid from the WLFI treasury.

The reward rate will be determined at WLFI’s discretion and is not tied to revenue or operational performance. Only staking participants will receive USD1 deposit incentives on WLFI Markets provided by Dolomite.

The proposal also introduces a tiered structure. “Nodes,” defined as participants staking at least 10 million WLFI, would gain access to over-the-counter USD1 conversion via licensed market makers at 1:1 parity.

World Liberty Financial plans to subsidize these conversions, redirecting arbitrage opportunities previously captured by institutional intermediaries, estimated at 10–15 basis points per cycle.

At the top tier, “Super Nodes” staking 50 million WLFI would receive guaranteed access to the WLFI team for partnership discussions and potential economic incentives, subject to compliance and commercial review.

The proposal requires a quorum of 1 billion eligible WLFI voting tokens and a simple majority to pass, with a seven-day voting window. If approved, implementation will roll out in three phases, beginning with governance staking activation.

Swiss digital asset bank Sygnum unveiled Sygnum Select, a new institutional crypto asset management service aimed at corporate treasuries overseeing roughly $100 billion in digital assets. Launched on Thursday, the discretionary mandate product applies the discipline of traditional private banking to the crypto frontier, offering strategic asset allocation, active rebalancing, and rigorous risk oversight for institutional clients. The service arrives with live mandates and about $200 million already under active management, according to a Sygnum spokesperson. Data from Bitcoin (CRYPTO: BTC) holdings platform BitcoinTreasuries shows public companies hold 1.13 million BTC and private firms hold 287,990 BTC, collectively valued at about $97 billion. This snapshot underscores the scale at which corporations already engage with crypto assets, even as the market seeks mature infrastructure for professional management.

Key takeaways

• Sygnum launches Sygnum Select, a discretionary mandate service that brings traditional portfolio-management rigor to institutional crypto assets, with live client mandates already in place.
• The offering targets the growing market of corporate and public digital asset treasury entities (DATs), which collectively hold well over $100 billion in crypto assets, highlighting a broad demand for regulated, end-to-end management.
• Clients gain full execution authority within an agreed investment framework, including strategic asset allocation, active rebalancing, and risk oversight, bridging private banking discipline with crypto exposure.
• Live mandates cover a wide spectrum: spot, staking, hedging, derivatives, tokenized securities, and market-neutral strategies across traditional and crypto assets.
• Initially, the service will serve Swiss clients, with plans for broader geographic expansion as institutional demand and regulatory clarity evolve.

Tickers mentioned: $BTC, $ETH

Market context: The range of corporate crypto deployments is expanding as institutions seek regulated, scalable solutions amid ongoing debates about custody, risk controls, and tokenization in traditional finance. The broader market backdrop includes a rising interest in tokenized assets and state-backed crypto reserves, alongside ongoing regulatory developments in key jurisdictions.

Sentiment: Neutral

Price impact: Neutral. The article describes product launches and market demand rather than immediate price moves.

Trading idea (Not Financial Advice): Hold. The expansion of regulated, discretionary crypto management services could support institutional risk management and liquidity, without implying short-term price catalysts.

Market context: As institutional adoption accelerates, regulated infrastructure and holistic management solutions grow in importance for corporate treasuries, alongside shifts toward greater tokenization and crypto readiness in traditional finance. The Swiss regulatory environment and broader ETF and custody developments remain closely watched by market participants. For context on Switzerland’s regulatory landscape, see the overview of cryptocurrency regulations in Switzerland: here.

Why it matters

The launch of Sygnum Select marks a notable push toward integrating crypto exposure into the same disciplined framework that underpins private banking solutions for traditional assets. By offering a discretionary mandate, Sygnum signals that institutional clients are seeking more than custody or execution—they want an active partner who can manage a crypto portfolio with a holistic risk and governance approach. This shift aligns with the maturation of the asset class, where institutions expect outcomes that mirror established private-banking standards rather than bespoke, ad hoc arrangements.

The service also reflects a broader market reality: corporate and public sector DATs have accumulated substantial crypto holdings, with BitcoinTreasuries data illustrating a substantial reservoir of crypto on corporate balance sheets. As regulated, scalable services emerge to serve these needs, the industry could see stronger demand for multi-asset strategies, cross-asset hedging, and tokenized securities that enable traditional investors to participate in crypto markets through familiar risk controls. The combination of traditional asset management discipline and crypto-native execution logic is intended to reduce operational friction and counterparty risk for large holders navigating a rapidly evolving landscape.

At the same time, Sygnum’s own track record—such as its market-neutral Bitcoin fund and recent fundraising milestones—provides context for the platform’s credibility. The bank previously raised more than 750 BTC in January for its market-neutral Bitcoin fund, which delivered an annualized return in the fourth quarter of 2025. The bank’s growth narrative is underscored by a post-money valuation surpassing $1 billion after a notable early-2025 funding round. These dynamics matter because they offer institutional clients a clearer signal of the institution’s capacity to manage complex crypto strategies within a regulated framework, which remains a priority for many treasuries evaluating outsourcing options.

Looking ahead, the Swiss focus of Sygnum Select—paired with reported intentions to expand geographically—illustrates a broader trend in which regulated, cross-border crypto asset management solutions become more widely available. While the initial rollout is Switzerland-centric, market participants will be watching to see how the product scales across jurisdictions with varying regulatory regimes, especially as tokenization, state-backed reserve concepts, and more sophisticated crypto instruments gain traction in traditional finance.

For readers tracking corporate crypto exposure, the push toward professional, institution-grade management infrastructure is a notable development. It complements existing flows into exchange-traded and custody services, while potentially broadening the set of investable crypto strategies available to treasuries and asset managers. As liquidity in the space continues to evolve and regulatory frameworks mature, Sygnum Select could serve as a blueprint for how crypto assets are managed within a regulated, multi-asset portfolio architecture, rather than in isolated, standalone crypto vehicles.

What to watch next

• Timeline and criteria for expanding Sygnum Select beyond Switzerland, including any regulatory approvals required for new jurisdictions.
• Uptake metrics: the pace at which additional client mandates are onboarded and the diversification of assets across traditional and crypto classes.
• Performance data for existing portfolios, including risk metrics and the impact of active rebalancing on portfolio drawdowns.
• Further product development, such as additional hedging instruments, derivatives capabilities, and tokenized securities offerings within the discretionary framework.

Sources & verification

• BitcoinTreasuries data on BTC holdings by public and private companies: https://bitcointreasuries.net/
• Cointelegraph reporting on Sygnum’s Bitcoin fund and related fundraising milestones: https://cointelegraph.com/news/swiss-bank-sygnum-raises-750-btc-market-neutral-fund
• Cointelegraph coverage of tokenization and Bitcoin reserves in 2026: https://cointelegraph.com/news/2026-sovereign-bitcoin-reserves-tradfi-tokenization-adoption-sygnum
• Cointelegraph overview of cryptocurrency regulations in Switzerland: https://cointelegraph.com/learn/articles/an-overview-of-the-cryptocurrency-regulations-in-switzerland

Market reaction and key details

Market participants will likely view Sygnum Select as part of a broader evolution in crypto asset management toward regulated, scalable, and holistic offerings. The emphasis on active portfolio management, multi-asset exposure, and risk oversight aligns with a growing demand from institutional clients seeking to integrate crypto into sophisticated investment programs rather than treat it as a stand-alone hedge or speculative play. As more corporate treasuries and DATs consider long-term crypto strategies, the availability of a regulated, institution-grade management solution could shape whether crypto becomes a durable component of diversified portfolios, or remains a jurisdiction-specific niche.

What the next steps could look like

If Sygnum successfully scales Sygnum Select beyond its Swiss launch, expect further clarity on governance frameworks, performance reporting standards, and interoperability with traditional private-banking platforms. The evolving landscape may also see regulators scrutinize product disclosures, risk controls, and cross-border suitability assessments as more institutions adopt such mandates. In parallel, ongoing developments in tokenization and liquidity solutions may broaden the range of assets available within discretionary crypto strategies, potentially expanding the addressable market and accelerating institutional adoption.

What to watch next

• Expansion announcements and regulatory milestones for onboarding new jurisdictions within the next 12–18 months.
• New performance disclosures and risk metrics for active portfolios under Sygnum Select.
• Partnerships or integrations with custody providers, insurers, or traditional asset managers to streamline compliance and reporting.

Update (Feb. 26 at 06:00 UTC): This article has been updated to include commentary from Paolo Ardoino, CEO of Tether]

US Federal agents in North Carolina seized more than $61 million worth of USDt (USDT) tied to a large‑scale “pig butchering” crypto investment scam that preyed on victims through fake online relationships and fraudulent trading platforms.

According to the US Attorney’s Office for the Eastern District of North Carolina in Raleigh on Tuesday, the scammers posed as romantic partners and claimed to have special trading expertise.

They then steered their victims toward convincing but fake crypto sites that displayed fictitious investment portfolios showing unusually high returns that enticed them to invest more, before the scammers blocked their withdrawals and demanded extra fees when victims tried to get their money back.

Investigators from Homeland Security Investigations traced the victims’ funds across multiple wallets used to launder the proceeds before identifying several addresses that still held substantial amounts, which were then seized and made subject to forfeiture.

Prosecutors noted that Tether cooperated in the investigation: “The Department of Justice and HSI acknowledges Tether for its assistance in transferring these assets,” the release states, in the latest example of stablecoin issuers working with authorities to freeze and recover funds flowing through US dollar‑pegged tokens like Tether’s USDt.

Paolo Ardoino, CEO of Tether, said that the company’s cooperation with the DOJ highlighted the need for blockchain transparency to “empower law enforcement to act quickly and effectively against criminal activity.”

Crypto fraud scams on the rise

This latest case comes at a time of explosive growth in crypto fraud, including pig butchering schemes that blend romance scams with bogus trading opportunities. 

Data from Chainalysis’ 2026 Crypto Scams report found that crypto scam losses in 2025 reached $17 billion, with artificial intelligence (AI) driven impersonation and social engineering scams increasing by 1,400% year‑on‑year and becoming far more profitable than traditional phishing or giveaway schemes. 

Related: How pig-butchering crypto scams turn trust into a financial weapon

In one incident in December 2025, a Bitcoin investor said he lost his retirement savings after being groomed by an online “trader” who used AI‑generated images and a fabricated persona to build trust before convincing him to move his coins into a fake investment platform.

US prosecutors have started to secure major sentences against the perpetrators of these networks. 

In February, a key figure in a pig butchering‑linked crypto laundering operation involving over $70 million was sentenced to 20 years in federal prison, reflecting how seriously courts are now treating this category of crime.

Magazine: South Korea gets rich from crypto… North Korea gets weapons