Crypto World
Gate Secures Malta PSD2 License for EU Payment Services
Crypto exchange Gate has secured a Payment Institution license in Malta, a license under the European Union’s PSD2 framework, giving the crypto exchange a regulated foothold to offer payment services across the bloc alongside its existing crypto permissions.
The company said Thursday that its Malta-based entity, Gate Technology, received the license from the Malta Financial Services Authority (MFSA). Gate said the approval supports its strategy of linking traditional payment infrastructure with Web3 services in Europe.
The authorization adds payment capabilities to Gate’s existing EU crypto permissions. On Oct. 1, 2025, Gate announced that it had obtained a license under the EU’s Markets in Crypto-Assets Regulation, allowing it to provide exchange and custody services across member states.
EU crypto companies offering payment services in stablecoins must hold either a Payment Institution or an Electronic Money Institution authorization. With PSD2 approval, Gate can passport regulated payment services across the bloc, expanding beyond trading into fiat and stablecoin payment infrastructure.
Gate says its flagship exchange serves more than 49 million users globally, though it does not publicly disclose a breakdown of users in the EU.
Payments authorization expands EU scope
Under PSD2 rules, licensed institutions may execute payment transactions, facilitate credit transfers and direct debits, and maintain payment accounts across the EU.
According to the MFSA’s public authorization catalogue, Gate Technology is permitted to provide payment services as defined under Malta’s Financial Institutions Act, including enabling cash to be placed on and withdrawn from payment accounts and carrying out all operations required to operate the accounts.
Gate CEO Giovanni Cunti said the license positions the company to deliver compliant payment solutions to institutional and retail clients.
The MFSA listing confirms that the approval extends beyond crypto custody and exchange services to regulated account and transaction functionality.
However, Gate did not specify which payment products will launch first or when expanded EU services will roll out.
Cointelegraph reached out to Gate for more information but had not received a response by publication.
Related: Deutsche Bank-backed AllUnity launches Swiss franc stablecoin CHFAU
Part of broader EU compliance trend
Gate’s approval follows a similar move by another major exchange. On Feb. 16, OKX obtained a Malta Payment Institution license to support products including OKX Pay and the OKX Card.
Under MiCA, crypto-asset service providers integrating stablecoin payments into regulated financial rails must align with EU payments law. As a result, Payment Institution approvals are increasingly becoming a prerequisite for exchanges seeking to offer euro-denominated payment flows alongside crypto trading.
Magazine: Hong Kong stablecoins in Q1, BitConnect kidnapping arrests: Asia Express
[PRESS RELEASE – Singapore, Singapore, February 26th, 2026]
Stablecoins have become a foundational layer for settlement, moving value across payments, remittances, and treasury operations worldwide. As these flows grow, the infrastructure behind dollar-denominated stablecoins matters as much as the assets themselves.
USDC and Circle Cross-Chain Transfer Protocol (CCTP) will be launching on Morph, bringing payment stablecoins and standardized cross-chain settlement to infrastructure built for payments.
USDC on Morph
USDC will be issued on Morph by Circle’s regulated affiliates, establishing it as a settlement asset across the network.
Issuance provides a consistent foundation for dollar-denominated activity. USDC on Morph will be canonical, with uniform behavior across applications and clear provenance at the protocol level.
For developers building payment applications, this simplifies dollar settlement by eliminating the need to manage bridge risk or fragmented liquidity. For institutions operating treasury systems, merchant platforms, or cross-border payment rails, USDC will provide access to a transparent stablecoin supported by Circle’s established on- and off-ramp infrastructure.
“Morph has spent the last several months meaningfully investing in our network’s core offering. As we have engaged with global leaders in the payment space, it’s clear that they need a widely-used, dollar-denominated stablecoin to meet their needs. For us, working with Circle to bring USDC to Morph was a clear choice,” said Colin Goltra, CEO of Morph.
CCTP: Cross-Chain Infrastructure
CCTP will enable USDC to move between supported blockchains using a burn-and-mint process that preserves supply integrity.
When USDC is transferred to Morph via CCTP, it will be burned on the source chain and minted natively on Morph. The asset will remain fully backed and verifiable under the same reserve framework.
Applications will be able to use Standard Transfer or Fast Transfer depending on their security and latency requirements, while maintaining consistent settlement behavior across networks.
Use Cases Across Payments
USDC and CCTP will support a range of payment and financial applications that rely on dependable dollar settlement and cross-chain access.
- Crypto Cards and Neobanks
Card programs and digital issuing platforms will be able to settle balances in USDC while enabling users to fund accounts from supported blockchains via CCTP.
Money movement platforms will benefit from transparent, stablecoin-based settlement with near-instant cross-chain transfers across regions.
Checkout providers will be able to accept payments from users across multiple chains while settling in USDC, simplifying reconciliation and reducing FX delays for merchants.
USDC will serve as collateral and a settlement asset across lending protocols and decentralized exchanges, with CCTP supporting liquidity movement between Morph and other supported blockchains, including connections to the Bitget ecosystem.
Building the Settlement Layer for Digital Dollars
To support teams bringing payment flows on-chain, Morph has launched the $150 million Payment Accelerator, providing funding, technical support, and access to payment partners and institutional onramps.
Together, USDC, standardized cross-chain settlement through CCTP, and direct ecosystem support position Morph as a settlement layer for real financial activity.
As stablecoins continue to underpin payments, treasury operations, and on-chain commerce, Morph is building the execution environment at institutional scale.
Money at the speed of life.
About Morph
Morph is an Ethereum-based, payments-first settlement layer and the native on-chain home of BGB, focused on building the foundation for global consumer finance on-chain. Morph supports real-world financial activity across payments, savings, identity, and rewards, enabling scalable, on-chain settlement for consumer and business use. Guided by the Morph Foundation, the network connects more than 120 million users through the Bitget and Bitget Wallet ecosystems.
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Wall Street moved toward Ethereum first then price followed. Institutions funneled $157M into Ethereum investment products on Wednesday, the largest daily inflow since mid January. Just hours later, ETH ripped 15% and reclaimed the $2,000 psychological level.
Now trading around $2,050, the move looks less like retail hype and more like deliberate positioning. While some large holders were selling into weakness, institutional desks were quietly absorbing supply.
That divergence stands out. It suggests this rally has a structural bid behind it, not just short term speculation.
Key Takeaways
- The Catalyst: Donald Trump’s State of the Union address reignited risk-on sentiment, directly preceding the $134 billion total crypto market inflow.
- The Flow: Institutional Inflows into ETH ETF products hit $157 million in a single session, marking a decisive reversal from previous outflow trends.
- The Signal: Treasury giant Bitmine added another $106 million in ETH, bringing total holdings to over $9 billion despite share price weakness.
Smart Money vs. Dumb Money: Analyzing the Flow Data
The timing fits a classic institutional play. While retail attention stayed on Bitcoin headlines, desks were building Ethereum exposure through spot ETFs. The $157M single day inflow signals rotation.
Bitcoin saw mixed flows around its $60K retest. Ethereum pulled in fresh capital instead. Recent filings show large asset managers have been increasing exposure to Ethereum linked vehicles over recent quarters.
The narrative behind it is shifting too. Tokenization and real world assets are increasingly tied to Ethereum’s ecosystem. And this right here could matter the most.
Ethereum Price Prediction: Is $2,400 Next?
The 15% jump to $2,050 has reshaped the chart. ETH has reclaimed the $2,000 level, flipping it back into support. That is the key shift. The next resistance sits near $2,150. Clear that cleanly and the path toward $2,400 opens up with less friction.
Momentum indicators are turning constructive. The 4 hour MACD has crossed bullish, and the Coinbase Premium flipping positive suggests U.S. buyers are stepping in.
Still, $2,080 is the short term level to watch. Lose it and a pullback toward $1,920 is possible to reset leverage. For now, the more likely scenario is consolidation above $2,000 before any attempt at the next expansion higher.
Discover: Here are the crypto likely to explode!
The post Wall Street Frontrunning Retail? Institutions Flooded Ethereum Before 15% Price Rally appeared first on Cryptonews.
Nearly half of the Bitcoin supply sits underwater, yet accumulation lags, which is keeping the price trapped in a fragile consolidation range for now.
Bitcoin climbed back to $68,000 after several days of decline, as markets reacted positively to Donald Trump’s State of the Union remarks. The crypto asset added fresh 4% gains on Thursday.
But data shows that BTC is still trapped in a structurally defensive consolidation, as the price oscillates between the $60,000 and $69,000, which is being deemed as the main demand zone. In fact, Glassnode experts stated that the market is stabilizing but not yet recovering.
Key Market Conditions
At a 46% drawdown from the all-time high, Bitcoin sits at a depth historically associated with mid-to-late bear market phases, where time itself often becomes a risk factor rather than a catalyst for upside. Nearly 9.2 million BTC are currently held at a loss. This means that half of the circulating supply is underwater, a condition that aligns with prior late-stage bear environments. However, it does not, on its own, point to renewed strength.
Despite the scale of unrealized losses, accumulation behavior remains muted, as evidenced by an Accumulation Trend Score persistently below 0.5 since early February. This indicates a lack of conviction-driven buying, particularly among larger entities whose participation is typically required to form a durable bottom.
Liquidity conditions further validate this fragility. Glassnode found that the 90-day Realized Profit/Loss Ratio has slipped below the critical 1.0 threshold, which appears to be a transition into an excess loss regime where realized losses dominate profits – a state that can persist for months and is associated with impaired capital rotation and higher downside risk.
Market breadth continues to deteriorate as fewer assets sustain positions above long-term trend baselines. Meanwhile, off-chain data mirrors these on-chain signals. For instance, spot markets have flipped decisively into sell-side dominance since cumulative volume delta across major venues plunged to cycle lows, thereby indicating active distribution rather than passive liquidity gaps.
In derivatives markets, leverage has largely reset, as perpetual funding rates compressed back toward neutral. This not only reflected reduced speculative excess but also highlighted the absence of renewed bullish conviction. A similar defensive posture was echoed by the options markets.
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Additionally, dealer positioning suggested that while sharp moves can be mechanically amplified, the broader structure remains one of consolidation rather than directional resolution. As such, Bitcoin’s current regime is characterized by stabilization amid structural weakness, where neither sellers nor buyers have seized decisive control.
According to Glassnode, a durable upside recovery will require a clear reversal in these conditions – renewed spot absorption to counter active distribution, sustained accumulation from large entities to restore conviction, and a meaningful shift in institutional flows to reestablish a structural bid. Until such signals emerge, range-bound price action between established valuation anchors remains the dominant theme governing Bitcoin’s market structure.
Macro and Geopolitical Risks
In the near term, macro and liquidity factors may continue to dictate price behavior within this structurally defensive range. In a statement to CryptoPotato, Bitunix analysts said,
“If safe-haven flows strengthen the dollar, price could come under pressure and retest the 65–64K liquidity band below. Conversely, if capital rotates toward an anti-inflation narrative, short-term inflows could drive a sweep of overhead short liquidity near 69K. The core variable remains whether geopolitical risks escalate materially.”
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Editor’s note: The following briefing outlines a new phishing campaign uncovered by Kaspersky that hijacks legitimate Google Tasks notifications to steal corporate credentials. The attackers impersonate trusted services, leveraging the @google.com domain and intra-company cues to evade standard filters and pressure users into acting quickly. Victims are invited to click a link and complete a fraudulent employee verification form, exposing sensitive credentials that could grant unauthorized access. This advisory highlights the evolving tactics criminals use to exploit familiar tools and the importance of vigilance in enterprise environments.
Key points
- Attackers abuse legitimate Google Tasks notifications to steal corporate credentials.
- The campaign uses the trusted @google.com domain to bypass filters and build trust.
- Users are directed to a fraudulent employee verification form after clicking a link.
- The social engineering hinges on urgency and internal process appearance to lower defenses.
Why this matters
By exploiting familiar services, the campaign exploits trust in everyday tools, increasing the likelihood that employees reveal credentials. This approach bypasses many security filters and highlights the need for awareness and layered defenses in organizations. The incident underscores why training, MFA, and robust verification processes are critical as attackers continue to adapt to legitimate platforms.
What to watch next
- Look for more phishing attempts that imitate enterprise tools via trusted notification channels.
- Watch for fraudulent forms asking for corporate credentials and verify URLs before interacting.
- Ensure MFA and mail-server security measures are in place to protect accounts.
- Report suspicious activity to IT and update security policies as needed.
Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.
Kaspersky discovers new phishing campaign exploiting Google Tasks notifications to steal corporate credentials
February 26, 2026
Kaspersky has uncovered a new phishing scheme that abuses legitimate Google Tasks notifications to trick corporate users into revealing corporate login credentials. By leveraging Google’s trusted @google.com email domain and notification system, attackers bypass traditional email security filters and exploit users’ trust in familiar services.
In this campaign, victims receive an authentic-looking notification from Google Tasks with the subject line “You have a new task.” The message creates the illusion that the recipient’s company has adopted Google’s task management tool, pressuring them to act quickly. The notification often includes elements of urgency, such as a high-priority flag and a tight deadline, to prompt the victim’s immediate response.
Upon clicking the embedded link, users are directed to a fraudulent form disguised as an “employee verification” page, where they are asked to enter their corporate credentials under the pretense of confirming their status. These stolen credentials can then be used for unauthorized access to company systems, data theft, or further attacks.
“Google’s vast ecosystem of services gets exploited by scammers. The scheme with Google Tasks is part of a broader trend observed before and continuing into 2026, where cybercriminals misuse legitimate platforms to distribute scams and phishing. Notifications originating from legitimate domains naturally evade many spam and phishing filters, while the social engineering aspect – making it seem like an internal company process – lowers the victim’s guard,” comments Roman Dedenok, Anti-Spam Expert at Kaspersky.
Read the article about this tactic on Kaspersky’s blog.
To counter this and similar threats, Kaspersky recommends:
- Treat unsolicited invitations from any platform with suspicion, even if they appear to come from trusted sources
- Carefully inspect URLs before clicking
- Do not call any phone numbers indicated in suspicious emails – if you need to call support of a certain service, it is best to find the phone number on the official webpage of this service
- Report suspicious emails to the platform provider and use multi-factor authentication for all accounts
- For corporate users, Kaspersky Security for Mail Server with its multi-layered defense mechanisms powered by machine learning algorithms provides robust protection against a wide range of evolving threats and offers peace of mind to businesses in the face of evolving cyber risks
- For individual users Kaspersky Premium offers AI-powered anti phishing features designed to help avoid phishing attacks and improve overall cybersecurity
About Kaspersky
Kaspersky is a global cybersecurity and digital privacy company founded in 1997. With over a billion devices protected to date from emerging cyberthreats and targeted attacks, Kaspersky’s deep threat intelligence and security expertise is constantly transforming into innovative solutions and services to protect individuals, businesses, critical infrastructure and governments around the globe. The company’s comprehensive security portfolio includes leading digital life protection for personal devices, specialized security products and services for companies, as well as Cyber Immune solutions to fight sophisticated and evolving digital threats. We help millions of individuals and nearly 200,000 corporate clients protect what matters most to them. Learn more at www.kaspersky.com.
MP Materials 10X Magnet Manufacturing Facility, Northlake TX.
Source: MP Materials
MP Materials has chosen Northlake, Texas, for its new $1.25 billion rare earth magnet manufacturing campus, the company announced Thursday, amid a rush to shore up domestic supplies of metals critical for everything from data centers and defense to personal electronics.
The facility, dubbed “10X,” will use rare earth raw materials that have been sourced and processed at MP Materials’ Mountain Pass mine in California. Mountain Pass is the only commercial-scale rare earths mine in the U.S.
Once operational, 10X will produce about 7,000 metric tons of rare earth magnets annually, bringing the company’s total production to 10,000 metric tons per year.
The company has another magnet facility in Forth Worth, Texas, which started commercial production in 2025. Total capacity is about 3,000 tons per year, with customers including General Motors and Apple.
China dominates critical minerals supply chains – including for rare earths, controlling more than 90% of processing, separation capacity, and magnet manufacturing. Last year the nation weaponized rare earths by curbing exports, shining a spotlight on chokepoints within the critical minerals supply chain.
U.S. imports of rare earth magnets fell to about 6,000 tons in 2025 amid export controls. MP Materials’ new factory could end direct import dependence. However, when including imports of end products that use rare earths magnets – including cars and phones – U.S. demand is significantly higher.
The Trump administration has announced a host of initiatives aimed at boosting domestic mining. Last year, the Defense Department took a $400 million stake in MP Materials, while also guaranteeing a minimum price of $110 per kilogram for 10 years for neodymium-praseodymium oxide, which is used to make magnets. All of 10X’s output is currently committed to the Pentagon for 10 years as part of the previously announced deal. That said, there is opportunity for commercial customers to use the material with the DOD’s agreement.
“We are advancing key objectives under our public-private partnership with the Department of War and accelerating America’s rare earth and magnet independence with an uncompromising focus on speed, execution, and delivery,” said MP Materials founder and CEO James Litinsky.
The factory is expected to begin production in 2028 and create 1,5000 direct manufacturing and engineering jobs at the site.
“The Chinese Communist Party represents the most acute national security threat to the United States, yet we remain dependent on the CCP for critical minerals,” Senator Ted Cruz (R-Texas) said in a statement. “MP Materials is building the infrastructure needed to undo that dependence and bolster American national security,” he added.
Blockchain sleuth ZachXBT on Thursday said a senior employee at onchain trading platform Axiom Exchange allegedly abused internal access to user data to track private wallets and potentially trade memecoins using inside information.
In a thread posted to X, ZachXBT said Broox Bauer, a New York-based senior business development employee at Axiom, used internal dashboards to look up sensitive user information — including linked wallet addresses — and shared that data with a small group that mapped trades of prominent crypto influencers.
Axiom, founded in 2024 by Mist and Cal and a member of Y Combinator’s Winter 2025 cohort, has generated more than $390 million in revenue to date, according to ZachXBT.
ZachXBT said he was retained to investigate allegations that internal tools were being misused. He did not say who retained him.
In audio clips shared in the thread, a person said to be Bauer allegedly claims he can track “any Axiom user” by referral code, wallet address or UID and “find out anything to do with that person.” In the same recording, he describes initially researching 10–20 wallets and gradually increasing activity “so it does not look that suspicious.”
Axiom did not respond to CoinDesk’s request for comment. In a post on X, Axiom said it was “shocked and disappointed” that someone on the team abused internal customer support tools.
“We have removed access to these tools and will continue to investigate and hold the offending parties responsible,” Axiom continued. “This does not represent us as a team, we have always tried to put the user first. We’ll share updates on our twitter as we learn more.”
The investigator alleged Bauer shared screenshots in April and August 2025 showing private wallet data tied to specific traders, including connected addresses and registration details. He also claimed a group compiled wallet addresses for multiple crypto key opinion leaders (KOLs) in a Google Sheet using data sourced from Axiom’s internal dashboard.
Several of the people named in the leaked material independently confirmed the accuracy of wallet information, according to ZachXBT.
The alleged strategy focused on traders known for accumulating large memecoin positions from private wallets before promoting tokens publicly. By identifying previously undisclosed wallets, the group could theoretically monitor accumulation patterns and position ahead of anticipated price moves.
ZachXBT identified what he said was Bauer’s primary wallet and mapped related addresses, noting that funds flowed to several deposit addresses on centralized exchanges. He cautioned, however, that without access to Axiom’s internal logs, it is difficult to establish high-confidence examples of insider trading based solely on onchain data.
The claims surfaced amid heightened scrutiny of trading practices in crypto. Earlier this week, a widely followed Polymarket bet on the identity of the firm in the investigation shifted sharply toward Axiom, with the market generating more than $30 million in volume.
Solana-based liquidity platform Meteora was the leading candidate at about 43% odds earlier in the week, with Axiom, Pump.fun, Jupiter and MEXC trailing at lower probabilities.
As of European morning hours Thursday, those odds shifted and Axiom became the frontrunner at 35%, followed by Meteora at 26% and the ‘others’ category at 15%.
While prediction market odds reflect trader sentiment, they offer no verified insight into the underlying evidence or the outcome of the investigation.
XRP remains in a corrective phase across both USD and BTC pairs. The recent bounce from locally oversold conditions has eased immediate downside pressure, but the broader structure still reflects a dominant downtrend, with rallies so far failing to reclaim major resistance zones or longer-term moving averages.
Ripple Price Analysis: The USDT Pair
On the USDT chart, XRP continues to trade within a descending channel that has governed the price action since late last year. The market recently reacted from the $1.20 support band, producing a short-term rebound toward the mid-channel area around $1.45–$1.50.
This move has not yet challenged the primary resistance cluster between $1.75 and $1.90, where prior breakdown support, the local channel ceiling, and the key 100-day moving average (yellow) converge.
As long as the asset holds above the $1.20 demand region, the structure allows for further relief toward the $1.80 zone; a decisive rejection there would confirm the downtrend, while a loss of the $1.30 short-term low would expose the next major support in the $1.10–$1.20 area.
The BTC Pair
Against Bitcoin, XRP is consolidating near the lower half of its multi-month range around the 2,000 sats after an extended period of underperformance. The pair remains capped by layered resistance between 2,200 and 2,300 sats, reinforced by the downward-sloping 100-day (yellow) and 200-day (orange) moving averages, while a broader supply zone sits higher in the 2,400–2,500 sats region.
Recent stability above 2,000 sats and a modest improvement in momentum indicators point to short-term mean reversion potential, but the relative trend stays bearish as long as XRP/BTC trades below the 2,400–2,500 sats band, where a sustained breakout would be required to signal a more durable shift in market leadership.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Ethereum has staged a notable rebound from the recent capitulation low near the mid-$1,700s, but the broader structure remains corrective after months of persistent downside.
The current advance looks more like a short-term relief rally within an established downtrend than a confirmed trend reversal, so the focus is on whether the price can reclaim key resistance zones and invalidate the series of lower highs that has dominated since late 2025.
Ethereum Price Analysis: The Daily Chart
On the daily timeframe, ETH continues to trade inside a well-defined descending channel, with the latest sell-off driving price from above the $3,000 mark down to the $1,700–$1,800 demand region near the lower boundary.
The bounce from this support has pushed RSI out of oversold territory and carried the price back toward the mid-line of the channel, but ETH still sits below the major resistance cluster formed by the $2,300–$2,400 supply zone, while the declining 100-day (yellow) and 200-day (orange) moving averages remain overhead.
As long as the channel remains intact and these resistances cap the market, the dominant trend points lower, and any rallies into that band are best viewed as tests of supply rather than evidence of a completed bottom.
ETH/USDT 4-Hour Chart
The 4-hour chart shows the rebound in greater detail: ETH has recovered sharply from the $1,800 area and is now pressing into the horizontal resistance level at the recent prominent high around $2,150. Short-term momentum has improved, with the RSI breaking out from a prolonged sub-40 regime and now printing an overbought signal.
Yet, the market is effectively range-bound between the $1,750–$1,800 support floor and the $2,150 ceiling. A clean breakout and consolidation above the latter would open room toward $2,300–$2,400, whereas a failure here followed by a return below $2,000 would suggest that the rebound is losing steam and that a re-test of the recent lows at $1,700 remains likely.
On-Chain Analysis
On-chain data from the exchange reserve metric indicate that the amount of ETH held on centralized exchanges has been trending down for many months and is now near multi-year lows. This structural decline in exchange balances, even as price has weakened, implies that a growing share of supply is being moved off-exchange, whether into self-custody, staking, or other long-term holdings, reducing the immediate pool of coins available for spot selling.
While this does not guarantee an imminent reversal, it is generally more consistent with an environment of underlying accumulation than one of broad distribution, and it suggests that, once the current downtrend exhausts, the reduced exchange supply could amplify the impact of renewed demand on the price.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Starknet has introduced strkBTC, a Bitcoin wrapper that integrates enhanced privacy features for DeFi without sacrificing performance. This development promises to enable private Bitcoin transactions while maintaining composability.
Starknet has launched strkBTC, a new Bitcoin wrapper that promises to bring enhanced privacy features to decentralized finance (DeFi) without compromising on performance.
strkBTC allows for shielded balances and transfers, enabling private Bitcoin transactions within DeFi ecosystems.
“Typically, there is a performance-privacy payoff. We are breaking that… there are many traditional Bitcoin wrappers, but strkBTC adds something different: privacy, delivered by the most privacy-literate team in the space,” said Eli Ben-Sasson, Co-founder of StarkWare.
Ben-Sasson emphasized that strkBTC maintains composability, allowing users to move Bitcoin through DeFi with private balances and transfers without isolating capital.
The strkBTC protocol focuses on privacy at the protocol level, incorporating selective disclosure for risk management. This approach is not a mixer or third-party wrapper; instead, tokens are issued deterministically in response to verifiable Bitcoin deposits.
Additionally, strkBTC plans to support Bitcoin staking on Starknet, enabling users to earn yield while maintaining shielded balances.
This move aligns with StarkWare’s broader mission of providing scalable and privacy-focused solutions in blockchain.
Starknet is the fifth-largest Ethereum-based layer 2, with about $560 million of total-value locked.
This article was generated with the assistance of AI workflows.
The Most Underrated Primitive in DeFi
DEXs get the glory.
Lending markets get the TVL.
Memecoins get the chaos.
But what is the quiet infrastructure that will determine which protocols survive the next bear cycle?
Insurance.
And not the polite, brochure-friendly version.
I’m referring to native, on-chain risk pricing markets integrated directly into DeFi protocols.
The Hard Truth: DeFi Is Structurally Underinsured
DeFi has:
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Billions in TVL
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Smart contracts controlling systemic liquidity
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Cross-chain bridges holding economic nukes
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Governance tokens directing treasury decisions
What doesn’t it have?
Adequate, scalable risk markets.
Insurance in DeFi today is niche. Optional. Afterthought-level.
But if capital markets teach us anything, it’s this:
Markets don’t mature without mechanisms to price risk.
Right now, DeFi prices yield far better than it prices fail.
That’s backwards.
Why Risk Pricing Markets Matter More Than DEXs
Yes, decentralized exchanges unlocked permissionless liquidity.
Yes, AMMs were revolutionary.
But over the long term, risk markets determine capital efficiency.
In traditional finance, insurance, and derivatives:
In crypto, we built leverage first… and safety second.
That’s like inventing jet engines before seatbelts.
What Is an On-Chain Insurance Market?
An on-chain insurance market is a protocol layer where:
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Smart contract risk is priced dynamically
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Coverage can be bought or sold permissionlessly
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Premiums adjust based on real-time demand and risk signals
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Claims are resolved via transparent mechanisms
Think of it as a prediction market for failure — except with capital backing it.
Risk becomes tradable.
Failure becomes priced.
Security becomes economically measurable.
The Bear Market Stress Test
Bull markets hide structural weakness.
TVL is up. Tokens pump. Hacks feel like isolated incidents.
Bear markets are different.
Liquidity dries up.
Confidence collapses.
Treasuries get tested.
Governance becomes brittle.
And here’s the thesis:
Protocols without native insurance primitives won’t survive the next real bear cycle.
Why?
Because when volatility spikes:
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LPs withdraw if the downside is unprotected
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Institutions avoid uninsured smart contract exposure
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Retail panics faster when risk is opaque
Without insurance, capital becomes fragile.
With insurance, capital becomes sticky.
Native Insurance vs. Third-Party Coverage
Most DeFi insurance today is external.
Protocols like:
offers coverage marketplaces.
That’s a start. But it’s not enough.
The future isn’t external add-ons.
The future is:
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Embedded coverage at the deposit
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Automated coverage ratios
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Insurance pools funded by protocol revenue
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Dynamic risk premiums are visible in UI
Insurance must be default, not optional.
The Capital Efficiency Argument
Insurance unlocks:
1. Lower Cost of Capital
If LPs are insured, they demand lower yield premiums.
Risk compression = deeper liquidity.
2. Institutional Participation
Institutions require hedged exposure.
No insurance = no serious capital.
3. Governance Discipline
If risk is priced, governance decisions become economically accountable.
Risk markets are truth machines.
They expose weakness before hacks do.
Insurance as a Signal Layer
On-chain insurance markets can function as:
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Early warning systems
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Governance credibility scores
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Smart contract risk dashboards
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Protocol health indicators
If premiums spike, something’s wrong.
Markets don’t lie — especially when capital backs the signal.
DEX volume can be gamed.
TVL can be mercenary.
Insurance pricing? Much harder to fake.
The Inevitable Convergence
Over time, we’ll see convergence between:
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Lending markets
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Perpetuals
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Options
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Insurance
All of them are risk-transfer systems.
The line between hedging and insurance will blur.
Smart contracts will self-insure.
Treasuries will auto-allocate to coverage pools.
Risk will be tokenized.
And the protocols that integrate this layer early?
They’ll survive volatility cycles with stronger balance sheets and higher trust.
The Real Competitive Moat
Most protocols compete on:
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APY
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Incentives
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UX
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Tokenomics
The next cycle will reward:
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Resilience
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Risk transparency
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Embedded protection
Yield attracts capital.
Insurance retains it.
Final Thesis
DeFi’s first phase was about access.
The next phase is about durability.
Risk pricing markets are not a side feature.
They are foundational infrastructure.
Protocols without native insurance primitives won’t survive the next bear cycle.
And when the next liquidity crunch hits, the market won’t ask:
“How high was your APY?”
It will ask:
“How well were you insured?”
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