Crypto World
Injective CEO Says L1s Are Bracing for a Decentralization Tug-of-War
As crypto adoption expands beyond early retail users and into institutional channels—and as agentic AI finance begins to introduce new expectations for “always-on” throughput—Layer-1 blockchains are likely to face a familiar trade-off: delivering more speed and capacity may tempt builders to centralize parts of their systems. Injective CEO Eric Chen warned that this pressure is coming, and that the industry will have to find scaling paths that do not undermine what makes a blockchain a blockchain.
Speaking on Cointelegraph’s Chain Reaction podcast, Chen framed the challenge as an effort to increase performance while protecting the core guarantees users associate with decentralized networks: resilience, credibility, and the absence of a single controller.
Key takeaways
- Scaling demands are increasing as institutional adoption and AI-driven finance push networks toward higher throughput and faster finality.
- Centralization can look like the simplest route to performance, but it also introduces single points of failure.
- Chen argues there are scaling opportunities that improve capacity without necessarily reducing block time.
- The blockchain trilemma remains a practical constraint: improving scalability too aggressively can come at the expense of decentralization or security.
Why speed and capacity could pull chains toward centralization
Chen said the market is effectively asking Layer-1 networks to provide “faster speeds” or “more block space” to support higher transaction volumes. That demand, he suggested, will test whether blockchains can scale in ways that preserve their foundational principles rather than trading them away for efficiency.
In his view, the goal is not to reject performance improvements, but to “find scaling opportunities” that do not compromise the “fundamental pillars” defining decentralized blockchains.
This tension matters because one of crypto’s original selling points was replacing trust in intermediaries with systems that can operate without a central party coordinating transactions. When throughput becomes the top priority, the temptation to consolidate control—whether operationally, infrastructurally, or at the protocol level—tends to rise.
The operational risks of “the easy way out”
Chen cautioned that centralized design is often the fastest engineering solution. He described scenarios in which all users rely on a shared data warehouse or where a small set of entities effectively determine network behavior.
The problem, according to Chen, is that such an architecture can create a single point of failure. If one critical server or decision-making component encounters a fault, it can cascade into broader service outages—potentially stopping the chain’s activity instead of allowing it to continue under independent validation.
For networks that market themselves on resilience and distributed control, that trade-off becomes especially consequential as usage grows and operational dependencies expand.
Injective’s framing: optimize the whole system, not just block time
Chen discussed Injective, which he described as an interoperable Layer-1 blockchain built for DeFi applications. For his team, the focus is on “figuring out ways to optimize the entire chain,” while exploring other scaling routes that do not necessarily require reducing block time.
One such approach he pointed to is what he called “scaling venues.” The basic idea is to create “dedicated zones” and use Layer-2 scaling to route or process high-demand transactions so the most active traffic can still get through without forcing the entire base layer into the most extreme performance configuration.
That distinction is important for investors and users evaluating roadmap narratives: if performance gains come primarily from architectural layering (and traffic management) rather than from concentrating control, the result can be a better match between throughput expectations and decentralization goals—though the actual implementation details determine how much decentralization is retained.
The blockchain trilemma still limits how much can be “optimized at once”
Chen’s comments also echoed the long-standing blockchain trilemma: the ideal network is expected to provide security, decentralization, and scalability, but maximizing all three simultaneously is difficult.
In the classic framing, decentralization means there is no single point of control and many independent parties validate the network. Security means the system is resistant to manipulation, fraud, and attacks. Scalability means the network can handle high transaction volumes quickly.
Chen warned that pushing too hard on scalability can force compromises elsewhere—particularly decentralization. In other words, if a blockchain’s design prioritizes throughput so aggressively that validation participation narrows, performance improvements may arrive alongside reduced network independence, even if the chain appears faster on the surface.
The takeaway is less about whether scalability is achievable and more about what form it takes. A network can increase capacity by adjusting how transactions are processed, how consensus is supported, and how load is managed. But each path tends to impose trade-offs that only become visible under real demand conditions.
Where the tension is heading next
Chen’s warning suggests that the next phase of Layer-1 competition may not be won solely by raw throughput metrics, but by how effectively teams scale while sustaining distributed validation and minimizing systemic dependencies. As institutional adoption and agentic AI finance intensify expectations for capacity, builders—and users—will likely watch closely for whether performance improvements come with a shift toward centralized control, or whether “scaling without compromise” can remain more than a slogan.
BonkDAO has disclosed that attackers have drained roughly $20 million worth of BONK tokens from its treasury after exploiting a malicious governance proposal.
Summary
- BonkDAO says attackers stole about $20 million in BONK through a malicious governance proposal targeting its Solana treasury.
- The DAO has contacted law enforcement and is investigating the exploit while attempting to recover the stolen funds.
- The incident adds to recent DeFi security breaches as the memecoin market remains under pressure.
According to a statement published by BonkDAO on X, the unauthorized proposal allowed an unknown entity to remove approximately $20 million in BONK from the project’s treasury on the Solana blockchain.
The DAO said it has reported the incident to law enforcement and is working to recover the stolen assets while helping identify those responsible.
The disclosure quickly weighed on market sentiment. Bonk (BONK) fell about 8.5% over the following 24 hours to trade at $0.0000044 as investors reacted to the treasury breach. The incident also adds to a growing list of governance and smart contract attacks that have affected decentralized finance projects in recent months.
What happened during the BonkDAO treasury attack?
BonkDAO attributed the loss to what it described as a “malicious governance proposal,” though it did not release technical details explaining how the proposal passed or how the treasury controls were bypassed. The organization said additional information would be shared as its investigation progresses.
Launched in December 2022, BONK became one of Solana’s best-known memecoins after its developers distributed half of the token’s total supply through an airdrop. Alongside Dogecoin, Shiba Inu and Pepe, the token remains among the most recognized assets in the memecoin sector.
Market data shows the sector has already been under pressure before the attack. CoinMarketCap data indicates the combined market value of leading memecoins, including DOGE, SHIB and PEPE, dropped to roughly $22 billion last week before recovering above $26 billion in July.
Even after that rebound, the category stood at about $25.3 billion at publication, down more than 54% over the previous 12 months, according to CoinMarketCap.
Why are governance and DeFi attacks drawing renewed attention?
Recent security incidents suggest attackers continue to target decentralized protocols through different methods. In May, memecoin launch platform DxSale disclosed that it lost about $7.3 million in tokens after a cyberattack affecting liquidity providers on BNB Chain.
Although blockchain investigators identified the attacker’s wallet, one security expert said the infrastructure used to move the stolen funds could make tracing and recovery more difficult.
A separate incident has also unfolded in decentralized finance. Security company Blockaid recently said its exploit detection system identified an active attack targeting Summer.fi, a DeFi yield aggregation and automated vault management platform.
According to Blockaid, roughly $6 million had already been drained when it issued its alert, though neither the firm nor Summer.fi had released a complete technical explanation at the time.
Crypto.news also previously reported another Blockaid alert involving a smart contract exploit affecting ShapeShift’s FOX Colony on Arbitrum, highlighting how security firms can detect active attacks before full forensic reports become available.
The BonkDAO breach also comes as scrutiny of memecoin projects has intensified. Earlier, crypto.news reported that blockchain analytics firm Nansen estimated around one million investors in U.S. President Donald Trump’s Official Trump (TRUMP) memecoin had collectively lost about $3.8 million as of June 30.
The report was published days after the president disclosed earning more than $1.4 billion from crypto-related businesses, including approximately $635 million linked to memecoin projects.
American Bitcoin Corp. said its Bitcoin reserve has moved above 8,000 BTC after its latest treasury update.
Summary
- American Bitcoin adds 500 BTC, growing its treasury while ABTC shares stay under pressure.
- The 1-for-15 reverse split keeps Nasdaq compliance in focus after a steep 2026 stock slide.
- Hut 8 mining gives American Bitcoin scale, but losses still shadow its treasury growth plans.
In a July 6 post on X, the company said its Bitcoin reserve has grown more than threefold since its Nasdaq debut, while its satoshis-per-share metric has also grown nearly threefold.
BitcoinTreasuries data showed American Bitcoin holding 8,000 BTC, worth about $512 million, among publicly traded Bitcoin treasury companies. The same tracker ranked the company near the top tier of public corporate BTC holders, ahead of GD Culture Group and Galaxy Digital in the U.S. list.
ABTC stock rises after reverse split
ABTC traded at $8.49 at the time of writing, up 14.1% on the day, according to Google Finance data. The stock opened at $7.98, touched an intraday high of $9.31, and fell as low as $7.40, with volume above 2.17 million shares.
The move followed American Bitcoin’s 1-for-15 reverse stock split. The company said the split became effective at 5:00 p.m. on July 2, with Class A shares set to trade on a split-adjusted basis on Nasdaq from July 6 under the same ABTC ticker.
American Bitcoin said the split would reduce issued shares from about 1.09 billion to roughly 73 million. The company said the action was mainly meant to lift the per-share price and help maintain compliance with Nasdaq’s minimum bid price rule.
Mining output supports treasury growth
As previously reported by crypto.news, American Bitcoin posted an $81.8 million net loss in the first quarter of 2026. The loss came as Bitcoin fell 22% during the quarter, which led to a $117.2 million non-cash charge on the company’s digital asset holdings.
The company still mined 817 BTC in the quarter and cut its cost per Bitcoin to $36,200. That was down 23% from $46,900 in the fourth quarter of 2025. American Bitcoin also bought 803 BTC during the quarter, taking its holdings to 7,021 BTC as of March 31.
CEO Mike Ho defended the operating result at the time. “The underlying business was profitable and we did not sell a single coin,” he said, referring to the company’s mark-to-market charge.
Hut 8 link remains central to ABTC strategy
American Bitcoin was launched by Hut 8 and Eric Trump in March 2025. Hut 8 said at the time that the company aimed to build a large pure-play Bitcoin miner while developing a strategic Bitcoin reserve.
As previously reported by crypto.news, American Bitcoin is backed by Eric Trump and Donald Trump Jr. The company has built its model around self-mining and treasury accumulation, rather than shifting away from mining toward artificial-intelligence data centers.
The latest treasury update shows that American Bitcoin continues to add BTC despite pressure on its share price earlier this year. The company’s stock rebound after the reverse split gives ABTC a higher trading price, but its performance still remains tied to Bitcoin prices, mining costs, and investor demand for public Bitcoin treasury firms.
Former Tether chief investment officer Richard Heathcote is seeking to sell part of his 1.26% stake in the stablecoin issuer, according to a Bloomberg report.
Summary
- Heathcote’s planned sale may give investors a rare look at Tether’s private ownership structure.
- USDT still dominates stablecoins, even as MiCA rules push some European platforms to delist it.
- Tether says it does not need an IPO while rival crypto firms keep weighing listings.
The report said Heathcote is working with PJT Partners and has started talks with potential buyers.
The planned transaction covers only part of his holding, not the full stake. Bloomberg did not report a valuation for the sale. A completed deal could offer a rare public marker for Tether’s private shares, because the company does not trade on a public exchange.
The report comes after Tether became one of crypto’s largest private companies by revenue and reserves. Any private stake sale may draw attention from investors who want exposure to stablecoin growth without buying shares in a listed company.
Tether remains privately held
Heathcote stepped back from daily duties in March, when Tether named Zachary Lyons as chief investment officer. Tether said Heathcote would stay connected to the company in a non-executive advisory role after helping guide its reserve management and investment strategy.
Tether CEO Paolo Ardoino has pushed back against public-listing talk. In an April 2025 post on X, he said, “Tether doesn’t need to go public.” The comment remains relevant as the reported Heathcote sale comes through a private process rather than an IPO.
The company has also continued to report large profits. Tether reported $1.04 billion in net profit for the first quarter of 2026, with excess reserves reaching $8.23 billion. Its assets remained mostly tied to U.S. government-backed instruments.
USDT still leads the stablecoin market
Tether issues USDT, the largest stablecoin by market value. DefiLlama data showed total stablecoin market cap at about $312 billion, with USDT holding about 59.05% market share and a market cap near $184.23 billion.
That size keeps Tether central to crypto trading, payments, and liquidity across exchanges. It also makes any movement in its private ownership closely watched. Investors may view the reported sale as a way to assess private demand for exposure to the issuer behind the market’s largest dollar-pegged token.
USDT remains widely used outside the U.S., especially where traders need fast dollar liquidity. Regulatory checks have grown as stablecoins move closer to mainstream payments and bank-linked services.
Europe pressure and IPO market set the backdrop
The reported sale comes while Tether faces tighter rules in Europe. As previously reported, Revolut will remove USDT from eligible European accounts after the European Union’s MiCA rules took effect. Users could buy USDT until July 6 and have until Aug. 31 to sell or withdraw supported balances.
Other large crypto firms have taken different paths. Kraken said in November that it had confidentially filed a draft registration statement for a proposed IPO, though related coverage later reported that layoffs and AI-driven restructuring could push its listing timeline into 2027.
South Korea’s Bithumb has also slowed its public-market plan. As previously reported, Bithumb continues to prepare for a 2028 IPO while also discussing a possible stake sale to Kiwoom Securities.
Tether has not announced plans to list its shares. The Heathcote sale places attention on the company’s private value, its stablecoin market lead, and how buyers may price exposure to one of crypto’s largest private businesses.
• Volume ran 16.19% above the seven-day average, enough to show participation but not enough to confirm a clean breakout.
• The sharpest activity came near the session low around $1.1110, when volume reached 106.5 million XRP, about 129% above the 24-hour average.
• Buyers later pushed XRP toward $1.1507, but the move failed to hold near the upper end of the range.
Technical Analysis
• The key development is that XRP defended the $1.11 area, but failed to turn the rebound into a sustained move above $1.13-$1.14.
• The earlier breakout above $1.08 remains intact, but the next leg higher needs stronger volume through resistance.
• The rejection near $1.1507 shows sellers are still active around the same zone that capped recent recovery attempts.
• The hourly structure weakened after XRP failed near $1.1308 and slipped back toward $1.1249, leaving a lower-high pattern intraday.
• XRP remains in a consolidation phase between support near $1.11 and resistance near $1.14-$1.15.
What traders should watch
• $1.1110 is the key downside level after buyers defended it during the session.
• $1.1249-$1.1270 is the immediate support zone after the latest intraday pullback.
• $1.1308-$1.1325 is the first resistance area bulls need to reclaim.
• $1.14-$1.15 remains the bigger test after repeated failures near that zone.
The Trump administration’s plan for a Strategic Bitcoin Reserve has run into legal and agency questions.
Summary
- Trump’s Bitcoin reserve plan faces legal questions over who can control seized government BTC holdings.
- Treasury was named in Trump’s order, but Commerce has emerged as another possible reserve manager.
- Custody, audits, and Congress remain central to the reserve framework debate.
Bloomberg reported that officials are still deciding which department can hold and manage the government’s Bitcoin.
The issue centers on whether the Treasury has clear legal authority to control a volatile digital asset as a federal reserve asset. The Commerce Department has also emerged as a possible home for the reserve, while the Justice Department’s Office of Legal Counsel works with both agencies on a lawful structure. The review keeps the plan active, but it also shows that control of the reserve remains unsettled.
Treasury role faces legal review
Trump’s March 2025 executive order said the Treasury secretary should create an office to manage the Strategic Bitcoin Reserve. The order said the reserve would hold BTC forfeited through criminal or civil proceedings, including assets already controlled by federal agencies.
The order also said government BTC placed in the reserve should not be sold and should be kept as reserve assets. Still, the same order required Treasury to review legal and investment issues, including where the accounts should sit and whether new legislation was needed to operate the reserve.
White House says structure is still under review
A White House spokesperson told CoinDesk that the administration continues to evaluate the best structure for the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile.
“To deliver on the president’s vision, the Trump administration continues to evaluate the best structure,” Liz Huston said.
As previously reported by crypto.news, White House crypto adviser Patrick Witt said in May that officials had made progress on legal and custody safeguards. He called the work a “breakthrough” and said an announcement was expected in the coming weeks, though the latest report shows that the structure remains under review.
Congress and custody remain key questions
The latest report shows that the reserve still depends on more than a presidential order. As previously reported by crypto.news, the U.S. already has a Bitcoin reserve on paper, but the main question is whether it can become a working program with clear custody and purchase rules.
Lawmakers have also tried to turn the reserve into law. crypto.news previously reported that the American Reserve Modernization Act would create a Treasury-run Bitcoin reserve, require a 20-year holding rule, and call for audits, proof-of-reserve reports, and reviews of budget-neutral purchase methods. No federal bill has completed passage, leaving executive agencies to solve the custody issue for now.
BitcoinTreasuries data showed the U.S. government holding 328,372 BTC, worth about $20.7 billion as of July 7. The tracker ranks the U.S. as the largest known government holder of Bitcoin, ahead of China, the United Kingdom, Ukraine, and El Salvador.
That large holding gives the reserve plan weight, but the new legal review shows the structure is not settled.
For now, the debate is not about buying more Bitcoin. It is about who can legally control seized BTC, how federal agencies should store it, and what rules should govern a reserve built from forfeited assets.
TeraWulf began as a bitcoin miner, running warehouses of specialized computers to earn newly issued coins, a business whose margins tightened after last year’s halving cut the mining reward in half.
Like several of its peers, it has pointed its power capacity and sites at hosting AI computing instead, where a single tenant on a long lease offers steadier income than the volatile economics of mining. The company still runs a bitcoin operation, but the Anthropic lease and its wider pipeline may now define its value.
Meanwhile, TeraWulf added it will sell its entire 50.1% stake in the Abernathy data-center joint venture in Texas to a group led by its partner Fluidstack for about $530 million, monetizing roughly $450 million of invested capital at a premium and freeing cash to expand data centers it owns outright.
The deal fits a rotation CoinDesk has tracked all year. As of March 2026, Bitcoin miners sold more than 15,000 coins from peak holdings and signed over $70 billion in AI computing contracts, chasing the steadier margins of the AI trade, the same shift of capital toward artificial intelligence that has pulled money out of crypto through a losing first half.
The lift stood out against a soft day for bitcoin itself. The token slipped toward $61,900 on Monday after Strategy disclosed the sale of 3,588 bitcoin for about $216 million, a sharp step up from the 32 coins it sold weeks ago.
“The institutional bid has all but vanished,” said Yusuf Fakhro, partner at ARP Digital, pointing to CME futures open interest at a 32-month low and a term structure at its tightest since early 2023.
He added that six-month options skew, a measure of how much traders pay to protect against a drop, has spiked to its fourth-highest on record, with the only parallels in June and November 2022, both of which came near major cycle bottoms.
When downside insurance gets this expensive, he said, the market is paying up for protection just as the worst may already be priced in.
Oil re-entered the picture overnight. Brent crude rose 0.6% to about $72.45 a barrel after a laden liquefied natural gas carrier was struck by a projectile near the Omani coast as it left the Strait of Hormuz, according to Bloomberg, a fresh attack that tests the peace deal reached in late June.
Energy shocks tied to the Iran conflict drove crypto’s selling earlier this year before the truce eased them, and a renewed flare-up is the kind of macro risk that had faded from the market’s view.
Elsewhere, Asian shares fell as technology stocks came under renewed selling, with South Korea’s Kospi down 6.7%, according to Bloomberg. Samsung Electronics slid 8.3% even after quarterly profit surged, and SK Hynix fell the same as it began marketing a U.S. listing. U.S. futures pointed lower, suggesting Monday’s Wall Street rebound may not carry.
Crypto World
Bitcoin Shrugs Off Strategy FUD, Hits New 2-Week Peak in Early Signs of Structural Stabilization
Bitcoin is showing “early signs of stabilization” as the price momentum exits an extreme negative regime, reported analytics firm Swissblock on Tuesday. It added that on-balance volume (OBV) is also starting to support the regime shift and “recovery begins with momentum, but a new trend requires buyers to follow.”
OBV is a momentum indicator that uses volume flow to predict price changes by measuring cumulative buying and selling pressure.
No Full BTC Recovery Yet
Swissblock said that it was not yet a confirmed recovery, “but if participation continues to strengthen along the way, the recovery signal becomes much stronger.” Bitcoin has gained 10% from its cycle low of around $58,000 on June 30, but remains down 50% from the October peak.
Momentum starts the move, participation sustains it.
bitcoin:native is showing early signs of stabilization as Price Momentum exits an extreme negative regime.
But this time, OBV is also starting to support the regime shift.
Recovery begins with momentum, but a new trend… pic.twitter.com/8aCiyRaaE9
— Swissblock (@swissblock__) July 6, 2026
Bitcoin is “easing into consolidation,” and selling has cooled, reported Glassnode on Monday.
“Hot capital is creeping back though, which could stir up volatility even as profits climb.”
The analytics firm added that the Bitcoin market is currently exhibiting “signs of structural stabilization”, characterized by a transition from “aggressive distribution toward a state of equilibrium.”
“While spot trading volumes remain subdued, this contraction suggests a period of consolidation, with participants adopting a more cautious, measured stance as the asset builds a base.”
Meanwhile, Santiment said that the crowd is still hyper-focused on the Strategy selloff FUD. Michael Saylor’s company sold 3,588 BTC for $216 million to fund dividends on Monday, causing the asset to dip 2.4% immediately after the announcement.
However, “this climb looks like a somewhat unexpected relief rally after Bitcoin has defended the key $60K level yet again,” said Santiment.
Grayscale said that Strategy’s sale “may reduce financing risk and support Bitcoin price stability,” and investors are responding positively to this decision.
Bitcoin Price Outlook
Bitcoin has recovered from its Strategy FUD sell-off dip to reach a two-week high of $64,500 in early trading in Asia on Tuesday. However, it had retreated to $63,200 at the time of writing, back to where it was this time yesterday, before Saylor offloaded.
Just like in 2018, Bitcoin is off to a good start in July, said ITC Crypto founder Benjamin Cowen.
“Usually, Bitcoin is strong in July, and the weakness shows back up in the Aug/Sep timeframe,” he added.
The post Bitcoin Shrugs Off Strategy FUD, Hits New 2-Week Peak in Early Signs of Structural Stabilization appeared first on CryptoPotato.
US President Donald Trump says he got involved in crypto “for politics” and became pro-crypto after seeing how much money the industry was making.
At a press conference in the Oval Office on Monday to announce “Trump Accounts,” an investment account for children under 18, Trump was asked whether the accounts would allow for Bitcoin (BTC).
“I’ve become a big crypto guy only for one reason: If we don’t have it, China’s going to have it,” Trump answered. “I’m a fan, I wasn’t initially, I didn’t know much about it, but, for some of my first term, I wasn’t much involved, and I watched it grow, and it’s a huge industry.”
“I got involved in it a little bit for politics,” Trump added. “I realized there are a lot of people that love crypto.”
The comments shed new light on why Trump pivoted his stance towards crypto. In his first term, Trump said he was “not a fan” of crypto and called Bitcoin “a scam.” Since then, he and his family have built deep business interests in crypto, and Trump has faced criticism for his pro-crypto stance while being connected to the industry.
“As a businessman, I see a lot of money starting to come in with Bitcoin and, you know, the different forms, and I said: ‘This thing’s got a lot of life,’ and then I hear China was going to make a heavy move on it,” he added. “If we didn’t do it, China would do it.”
Trump’s pro-crypto pivot attracted the help of the crypto lobby, which spent around $170 million in the 2024 election to help elect mostly Republicans, and is set to spend even more backing pro-crypto candidates in the November midterms.
Donald Trump speaks to reporters about “Trump Accounts” at the White House on Monday. Source: YouTube
Trump says he doesn’t talk to family about crypto interests
Trump said he doesn’t talk to his family about their involvement in crypto, an area that made him more than $1.4 billion last year, according to financial disclosures released June 30.
Trump and his sons are listed as co-founders of World Liberty Financial, a crypto platform that generated a large portion of Trump’s crypto-related income last year, but the president said his interest in crypto is “not a question of a personal thing.”
Related: Donald Trump says ‘nothing wrong’ with $1.4B crypto windfall while in office
“I let my kids do whatever the hell they do. I don’t talk to them, ever, talk to them about it,” Trump said.
Trump claimed that the Biden administration “dropped all investigations” related to crypto when he “went very pro-crypto.”
However, under the Trump administration, the Securities and Exchange Commission stopped multiple investigations and withdrew or settled enforcement actions filed against crypto companies, some of which had donated to Trump.
“Every time I see a crypto guy where they dropped an investigation, I said: ‘You’re lucky I’m president,” Trump said.
Magazine: SBF will never get a pardon, Trump peace deal boosts Bitcoin: Hodlers Digest
The United Nations Development Programme has expanded its partnership with the Stellar Development Foundation after blockchain payment pilots cut aid distribution costs from 10% to 2% and kept payments running during network outages.
Summary
- UNDP has expanded its Stellar partnership after blockchain pilots lowered aid payment costs and improved payment resilience.
- Syria’s pilot cut distribution costs from 10% to 2%, while Haiti maintained payments during a cellular outage.
- Recent MoneyGram and DTCC partnerships have strengthened Stellar’s role in payments and tokenized assets.
The United Nations Development Programme announced Monday that it has signed a new agreement with the Stellar Development Foundation (SDF) following 16 months of blockchain payment pilots across multiple countries.
According to UNDP, the agreement creates a framework for its country offices to use blockchain-based payments across more development programs after testing the technology in Haiti, Syria, Kenya, Guatemala, and The Gambia, with additional projects completed in Colombia and Papua New Guinea.
During the pilot phase, UNDP reported measurable operational improvements. In Syria, a Cash for Work program that recorded payments onchain reduced distribution costs from 10% to 2%.
In Haiti, another pilot continued processing aid payments despite a cellular network outage, showing that the system could keep operating even when conventional communications infrastructure was disrupted.
According to UNDP, the agency will now move from country-specific trials toward a standardized process that allows local offices to deploy blockchain payments where appropriate. The organization said the initiative is intended to improve the delivery of financial assistance while supporting development programs in regions with limited banking access.
Why is UNDP increasing its use of blockchain?
Alongside the payment expansion, UNDP has continued building internal expertise around blockchain technology. Last month, the agency launched a Blockchain Advisory Group during the Proof of Talk conference in Paris to guide future blockchain adoption across its development work.
According to UNDP, the group will examine applications beyond digital payments, including digital public infrastructure and public service modernization.
The latest agreement comes as blockchain payment networks, particularly those using stablecoins, continue gaining attention for cross-border transfers and remittances in markets where banking services remain difficult to access. International organizations and private companies have increasingly explored blockchain as an alternative settlement rail that can reduce costs and improve payment speed.
Speaking at the World Economic Forum annual meeting in January, former UN under-secretary-general Vera Songwe said digital payment systems have become increasingly important for developing economies.
Songwe told attendees that stablecoins are becoming “more important than aid” in some countries because they provide financial access where traditional banking services remain unavailable. She added that around 650 million people in Africa do not have bank accounts but can still access digital financial services through smartphones.
How is Stellar strengthening its payments network?
The UNDP agreement adds to a series of recent developments that have expanded Stellar’s presence in financial infrastructure.
Earlier this month, as previously reported by crypto.news, MoneyGram introduced its U.S. dollar stablecoin, MGUSD, on the Stellar blockchain. The token is issued by Bridge, a Stripe-owned company operating under the GENIUS Act framework, while M0 manages the smart contract infrastructure for minting and burning the stablecoin.
MoneyGram said the rollout will begin in the United States before expanding internationally through its network of more than 60 million active customers, with Fireblocks providing custody infrastructure.
Institutional adoption has also continued. In May, the Depository Trust & Clearing Corporation (DTCC) partnered with the Stellar Development Foundation to develop DTC custody asset tokenization services on the Stellar public blockchain.
The partners said the first tokenized assets are scheduled to go live during the first half of 2027, making Stellar part of DTCC’s multi-chain strategy for issuing and settling tokenized real-world assets.
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