Crypto World
Kraken Launches Fixed-Rate Crypto Loans for Pro Members
Kraken has expanded its lending toolkit with Flexline, a crypto-backed loan offering designed for Kraken Pro users seeking liquidity without selling their digital assets. The fixed-rate facility supports terms ranging from two days to two years, with loan proceeds issued in either cryptocurrency or stablecoins depending on eligibility. Collateral sits in segregated wallets and is included in Kraken’s Proof of Reserves attestations, which the exchange says verify client assets on a 1:1 basis. Annual percentage rates run from 10% to 25%, and borrowers can repay early, though an early repayment fee applies. Availability is restricted to certain regions, with the product not offered in Australia, Brazil, Canada, India, New Zealand, Switzerland, the United Arab Emirates, the United Kingdom, or the United States. The rollout follows Kraken’s recent foray into tokenized equity perpetual futures on its regulated derivatives platform, expanding leveraged exposure to major indices and select equities for eligible non-US clients. (CRYPTO: XRP) and other well-known assets feature in the broader landscape Kraken outlined, signaling a broader push toward collateralized liquidity across the ecosystem.
Key takeaways
- Flexline provides fixed-rate crypto-backed loans with terms from two days to two years, and borrowers can receive funds in crypto or stablecoins depending on eligibility; loan-to-value ratios are not disclosed.
- Collateral is held in segregated wallets and reflected in Proofs of Reserves attestations, offering 1:1 backing in the eyes of the lender.
- APR ranges between 10% and 25%; early repayment is allowed but carries a fee; the product is not available in several major markets, including the US and UK, among others.
- The launch sits within a broader trend of crypto-backed lending across centralized exchanges, DeFi, and traditional finance, highlighted by parallel moves such as Coinbase expanding its collateralized loan product and institutional participation in lending infrastructures.
- Kraken’s expansion comes as DeFi lending remains sizable, with on-chain data indicating substantial liquidity and borrowing activity across leading protocols and an ongoing consolidation of traditional finance actors into crypto lending ecosystems.
Tickers mentioned: $XRP, $DOGE, $ADA, $LTC, $USDC, MORPHO, $APO, $AAPL, $NVDA, $TSLA
Market context: The Flexline announcement arrives amid renewed momentum in crypto-backed lending, spanning exchanges, DeFi, and traditional finance. On-chain data show DefiLlama reporting roughly $51.9 billion in total value locked (TVL) across DeFi lending, with about $30.8 billion actively borrowed, led by the Aave ecosystem and a growing suite of collateralized products. This backdrop underpins Kraken’s push into flexible liquidity, aligning with a broader industry trend toward asset-backed credit facilities as market participants seek alternative funding rails amid liquidity cycles and evolving regulatory expectations.
Why it matters
For users, Flexline represents a structured path to liquidity without realizing tax-inefficient or market-timing-driven asset sales. By accepting collateral that remains on the books of the exchange, borrowers can access funds quickly, with the option to keep exposure to their upside while maintaining asset ownership. The 1:1 Proof of Reserves attestations Kraken cites aim to bolster confidence in the solvency and transparency of the arrangement, an important consideration as lenders navigate ongoing scrutiny and evolving custody standards. The inclusion of a wide array of collateral types—ranging from DeFi mainstays to stablecoins—highlights the industry’s ongoing effort to diversify liquidity channels and reduce dependence on any single asset class.
From a broader market perspective, Flexline fits a momentum arc where institutional and high-net-worth participants are increasingly experimenting with crypto-backed credit as a tool for liquidity management and yield optimization. The Coinbase expansion of its collateralized loan product to support a larger basket of assets, including XRP and other major tokens, underscores a competitive dynamic among CeFi players to offer more flexible borrowing terms without forcing asset liquidation. At the same time, rate environments and regional restrictions continue to shape how and where such products are deployed, with regulators in several jurisdictions paying closer attention to risk controls around collateral valuation and liquidation triggers. These dynamics are complemented by DeFi activity and institutional partnerships that point to a maturing ecosystem where multiple rails—CeFi, DeFi, and traditional finance—coexist and interact more frequently.
Looking ahead, market participants will watch how liquidity facilities such as Flexline influence user behavior during drawdowns, the appetite of counterparties to post diverse collateral (including tokens with volatile price trajectories), and the pace at which regulators delineate acceptable risk parameters for crypto-backed lending. The presence of established players like Apollo Global Management, which has engaged with Morpho in blockchain-enabled lending infrastructure, signals continued institutional curiosity, even if the path to broad adoption remains contingent on regulatory clarity and risk management frameworks. The evolving landscape suggests lenders will increasingly balance rapid funding with robust collateral-risk controls, aiming to deliver utility for traders and investors without compromising balance-sheet integrity.
As the ecosystem continues to evolve, Flexline could become a reference point for how crypto-backed credit products are designed, tested, and scaled across jurisdictions. The integration of transparent custody, reserve attestations, and a diverse set of collateral types could help normalize these facilities as a pragmatic tool for liquidity management on both retail and professional scales.
What to watch next
- Regional accessibility updates: whether Kraken expands Flexline availability to additional jurisdictions currently restricted.
- Asset coverage: whether more collateral types, including new tokens, are added to the supported list.
- Regulatory milestones: any changes in rules affecting crypto-backed lending, custody, and reserve reporting in major markets.
- Product integration: how Flexline interacts with Kraken’s other offerings, such as tokenized equity futures and other derivative products, and any cross-collateral or risk-management enhancements.
Sources & verification
- Kraken Flexline official page: https://www.kraken.com/en-gb/pro/flexline
- Kraken Learn comparison page: https://www.kraken.com/learn/kraken-vs-kraken-pro#:~:text=geared%20toward%20beginners%20and%20individual%20investors%2C%20while%20Kraken%20Pro%20is%20for%20advanced%20and%20institutional%20traders.
- Business Wire press release on Flexline launch: https://www.businesswire.com/news/home/20260225892767/en/Kraken-Launches-Flexline-a-Crypto-Secured-Loan-Offering-Flexible-Access-to-Liquidity
- DefiLlama lending data: https://defillama.com/protocols/lending
- Cointelegraph coverage of Apollo-Morpho partnership: https://cointelegraph.com/news/apollo-deepens-blockchain-play-enters-crypto-lending-via-morpho-partnership
What the article means for readers
Beyond the specifics of Flexline, Kraken’s move signals a continuing shift toward more accessible, asset-backed liquidity options in crypto markets. For builders, it reinforces the importance of secure custody architectures and transparent reserve reporting as core capabilities that enable scalable lending. For investors, the initiative highlights the evolving risk-reward calculus of crypto credit, where yield considerations must be weighed against the stability of collateral, platform risk, and the regulatory backdrop that governs use of crypto-backed lines of credit.
Rewritten Article Body: Kraken’s Flexline and the trajectory of crypto-backed lending
Kraken’s Flexline marks a deliberate pivot toward liquidity-first thinking in the crypto space. By enabling borrowers to post collateral and receive funds without parting with their holdings, the exchange is expanding the practical toolkit available to traders who face sudden cash needs or strategic opportunities. The mechanism rests on fixed-rate terms that stretch from a few days to several years, delivering predictability for budgeting while avoiding the volatility risk that can come with floating-rate loans in unsettled markets. The policy framework explicitly restricts some regions, a reminder that the regulatory landscape remains uneven across jurisdictions and that product design must respond to those realities. The stated APR band of 10% to 25% aligns with other crypto-backed facilities, though the precise Loan-to-Value ratios are not disclosed publicly, a common feature among lenders who balance risk with the flexibility to tailor terms to collateral type and borrower profile.
Collateral is held in segregated wallets, and the company asserts that it participates in 1:1 Proof of Reserves attestations. In effect, this positions Flexline as a transparent, auditable line of credit backed by clients’ on-chain assets. The prospect of liquidation remains a core risk management lever; Kraken notes that collateral can be liquidated if a borrower breaches maintenance requirements or fails to repay at maturity. Early repayment is allowed, but it comes with a fee, a design choice that aligns incentives toward timely settlement and preserves the lender’s ability to manage liquidity risk. The regional exclusions—Australia, Brazil, Canada, India, New Zealand, Switzerland, the United Arab Emirates, the United Kingdom and the United States—underscore the reality that jurisdictional risk remains a central concern for crypto lenders and borrowers alike, shaping product availability rather than merely reflecting policy preference.
From a product strategy standpoint, Flexline is not a stand-alone initiative. Kraken frames it within a broader expansion of liquidity options across its ecosystem. The same week, it launched tokenized equity perpetual futures on a regulated derivatives platform, providing eligible non-US traders with around-the-clock leveraged exposure to broad US stock indices, as well as individual equities such as Apple (CRYPTO: AAPL) and Nvidia (CRYPTO: NVDA), alongside other marquee names. This pairing of crypto-backed loans and tokenized equity instruments illustrates an integrated approach to liquidity and exposure that leverages both crypto and traditional markets. The inclusion of stablecoins as viable loan proceeds further broadens accessibility, enabling borrowers to receive funds in a form that can be immediately deployed within Kraken’s trading and settlement rails or withdrawn where geographic rules permit.
Across the broader market, Flexline exists within a resurgent appetite for crypto-backed lending that spans centralized exchanges, DeFi platforms, and traditional finance players. Coinbase’s recent expansion of its collateralized loan product—allowing US users to borrow up to $100,000 in USDC against a diverse asset set including XRP and other tokens—signals a competitive impulse among CeFi lenders to broaden asset coverage and reduce friction for borrowers. On the DeFi side, the liquidity story remains robust, with DefiLlama data indicating that the sector’s TVL hovered near $51.9 billion, with roughly $30.8 billion actively borrowed. Aave remains a dominant force, accounting for a substantial share of the TVL, while Morpho and other protocols continue to capture flows as lenders and borrowers explore alternatives to traditional custodial models.
Institutional involvement in crypto lending has also intensified. Apollo Global Management recently deepened its blockchain play through a Morpho partnership, signaling that traditional asset managers see potential in blockchain-based lending infrastructure and related token economics. The MORPHO token, along with related governance and staking dynamics, sits at the intersection of DeFi incentives and institutional risk management, illustrating how the line between traditional finance and crypto-native markets continues to blur. The broader ecosystem is also watching the dynamics around asset-backed liquidity in relation to regulatory expectations and risk controls, including how custody solves and reserve transparency practices evolve to meet stricter scrutiny.
For market participants, Flexline offers a practical option to unlock liquidity while maintaining exposure to digital assets. The decision to allow proceeds in both crypto and stablecoins provides flexibility, particularly for traders who want to execute spread trades or rebalance positions without triggering tax events or incurring high slippage from an asset sale. Yet with a fixed-rate structure and a potential liquidation path, borrowers must weigh the benefits of immediate liquidity against ongoing collateral risk and the potential cost of early repayment. In a landscape where DeFi lending has demonstrated resilience but remains sensitive to macro shifts and regulatory signals, Kraken’s Flexline contributes to a more nuanced, multi-rail approach to crypto credit—one that could push other players to refine their own terms, risk disclosures, and reserve practices to stay competitive while safeguarding investor confidence.
Looking forward, the evolution of crypto-backed lending will hinge on regulatory clarity, custody innovations, and the continued integration of crypto-native and traditional financial products. As lenders experiment with more asset classes and as traders increasingly treat crypto credit lines as a normal part of their toolkit, the industry will need to maintain rigorous risk management, transparent reporting, and robust liquidity provisions. Flexline’s early steps suggest a trend toward streamlined liquidity with stronger reserve guarantees, a combination that could help drive wider adoption while ensuring that credit facilities remain resilient in the face of price volatility and shifting regulatory winds.
What to verify
- Official Kraken Flexline terms and eligibility details on the Flexline page and the Learn portal.
- The Business Wire press release for the official rollout narrative and regional restrictions.
- DefiLlama’s current lending TVL and the distribution among leading DeFi lenders, including Aave and Morpho.
- Coinbase collateralized loan product expansion disclosures and any related regulatory filings or statements.
Anchorage Digital, the federally chartered U.S. crypto bank, signaled deepening institutional conviction in Bitcoin by disclosing it holds perpetual preferred stock issued by Strategy on its balance sheet.
Summary
- Anchorage Digital disclosed holdings of Strategy’s Nasdaq-listed perpetual preferred stock (STRC), signaling strategic alignment with the leading corporate Bitcoin treasury firm.
- Strategy recently completed its 100th Bitcoin purchase, bringing total holdings to over 717,000 BTC and reinforcing its role in institutional Bitcoin accumulation.
- The move follows Anchorage’s $100 million equity investment from Tether and may support its broader strategic initiatives ahead of a potential IPO.
Anchorage Digital backs Strategy’s Bitcoin play with STRC bet
CEO Nathan McCauley framed the move as a meaningful alignment between the company that “operationalizes Bitcoin infrastructure” and the firm that has become synonymous with corporate Bitcoin accumulation.
McCauley posted on social platform X that the investment in STRC, Strategy’s perpetual preferred security, underscored conviction rather than casual interest in digital assets.
STRC is a Nasdaq-listed perpetual preferred security that pays an attractive annual dividend, roughly 11.25% before expenses, and is closely tied to Strategy’s Bitcoin treasury strategy.
Strategy, led by executive chairman Michael Saylor, has aggressively expanded its Bitcoin holdings through regular purchases funded by equity and preferred stock offerings. The firm recently marked its 100th Bitcoin acquisition, adding another 592 BTC and bringing its total to more than 717,000 coins, roughly 3% of all Bitcoin in circulation.
McCauley’s post was met with affirmation from Saylor himself, who echoed the sentiment that “conviction is contagious,” offering a rare glimpse into how significant institutional actors are positioning around Bitcoin beyond simple custodial services or trading exposure.
Anchorage Digital declined to disclose the size or timing of its holdings, but McCauley described the move as more than symbolic, suggesting that when a regulated crypto bank puts capital alongside the world’s largest dedicated corporate Bitcoin holder, it speaks to confidence in Bitcoin’s long-term relevance.
The bank’s move follows a $100 million equity investment from stablecoin issuer Tether and precedes Anchorage’s planned IPO.
Hong Kong will introduce sweeping reforms to strengthen its position as a global digital asset hub, Financial Secretary Paul Chan announced in his 2026-27 Budget speech, outlining new licensing rules, stablecoin approvals and tokenization initiatives.
Summary
- Hong Kong will introduce a bill this year to establish licensing regimes for digital asset dealers and custodians as part of its expanded regulatory framework.
- The government confirmed the first batch of fiat-referenced stablecoin issuer licenses will be granted next month, marking a key milestone in its crypto roadmap.
- Authorities will support tokenized bond issuance, enhance digital asset market liquidity, and implement the OECD’s Crypto-Asset Reporting Framework to boost tax transparency.
The government will table a bill this year establishing licensing regimes for digital asset dealing platforms and custodian service providers, expanding the city’s regulatory perimeter beyond exchanges.
The move follows Hong Kong’s second policy statement on digital assets, which aims to create what officials describe as a “comprehensive regulatory framework” for innovation and investor protection.
Chan also confirmed that Hong Kong has implemented a licensing regime for issuers of fiat-referenced stablecoins, with the first batch of licenses set to be issued next month. Authorities said they will work with approved issuers to explore compliant, risk-controlled use cases, signaling a shift from policy design to real-world deployment.
The Securities and Futures Commission (SFC) will take additional steps to deepen liquidity in the city’s digital asset market, particularly for professional investors. The regulator plans to broaden the range of products and services available and launch an accelerator program aimed at fast-tracking innovation within regulatory guardrails.
Tokenization is another key focus. The government will publish guidance clarifying that debenture holder registers can be maintained using distributed ledger technology, while exploring electronic signatures for bond issuance documents and the digitalization of bearer bonds.
In parallel, Hong Kong will amend its Inland Revenue Ordinance to implement the OECD’s Crypto-Asset Reporting Framework and updated Common Reporting Standard over the next two years. The changes, with a bill expected in the first half of this year, are designed to enhance tax transparency and combat cross-border tax evasion.
Together, the measures mark one of Hong Kong’s most comprehensive digital asset policy pushes to date, reinforcing its ambition to compete with major global crypto financial centers.
Ethereum co-founder Vitalik Buterin has added to a newly released roadmap outlining how Ethereum plans to dramatically speed up the production of new blocks and the confirmation of transactions.
Vitalik’s comments on Thursday offered more detail on a visual public roadmap called “Strawmap” released by the Ethereum Foundation’s Protocol team.
“Fast slots are off in their own lane at the top of the roadmap, and do not really seem to connect to anything,” said Buterin, noting that the rest of the roadmap is “pretty independent of the slot time.”
Slot time is the time it takes for Ethereum to produce new blocks, currently around 12 seconds. The roadmap aims to get this down to as fast as 2 seconds, so the blockchain feels more like a live, responsive system rather than something that has to be waited for.
“I expect that we’ll reduce slot time in an incremental fashion,” said Buterin, suggesting reductions following a roughly square-root-of-two formula from 12 seconds down through 8, 6, 4, and eventually as low as 2 seconds.
He also suggested that p2p improvements, or upgrades to how Ethereum nodes communicate with each other — such as sharing new blocks and data without the need to download repeated data — can greatly reduce block propagation time, “making shorter slots viable with no security tradeoffs.”
Finality from minutes to seconds
The second major improvement in the roadmap is to finality, or the point at which a transaction is mathematically guaranteed to be irreversible, which is currently around 16 minutes.
The future goal is finality between 6 and 16 seconds, achieved by replacing the current complicated confirmation system with a cleaner, simpler one that’s also quantum-resistant.
Related: Ethereum Foundation lists ‘quantum readiness,’ gas limits as 2026 priorities
“The goal is to decouple slots and finality, to allow us to reason about both separately,” explained Buterin.
He said this was a “very invasive set of changes,” so the plan is to bundle the largest step in each change with a “switch of the cryptography, notably to post-quantum hash-based signatures.”
Quantum resistance of slots before finality
Buterin said that a consequence of this approach would be quantum-resistant slots before finality.
“One interesting consequence of the incremental approach is that there is a pathway to making the slots quantum-resistant much sooner than making the finality quantum-resistant.”
The network might “quite quickly” get to a regime where, if quantum computers suddenly appear, “we lose the finality guarantee, but the chain keeps chugging along,” he said.
“Expect to see progressive decreases of both slot time and finality time,” Buterin summarized.
The “component-by-component replacement” of Ethereum’s slot structure and consensus will produce a “cleaner, simpler, quantum-resistant, prover-friendly, end-to-end formally-verified alternative.”
The timescale for these changes is over the next four years, with seven forks planned roughly every six months. Glamsterdam and Hegotá are already confirmed and slated for later this year.
Magazine: Bitcoin may take 7 years to upgrade to post-quantum: BIP-360 co-author
Forum Markets, formerly ETHZilla (EXCHANGE: ETHZ), unveiled a comprehensive rebranding on Wednesday that signals a strategic departure from a crypto-treasury play toward tokenizing real-world assets on-chain. The company said it will operate under the Forum brand and will begin trading as FRMM (EXCHANGE: FRMM) once Nasdaq approves the ticker switch for market open next week. The move reflects a broader shift in the market as investors weigh the sustainability of crypto-backed balance sheets against regulated infrastructure that can support asset tokenization, governance transparency, and scalable on-chain settlement. The leadership frames the pivot as a move toward institutional-grade, on-chain products backed by real assets, governed by transparency, and delivered through regulated infrastructure.
The stock reaction on Wednesday offered a snapshot of investor sentiment: ETHZilla shares rose about 13% to close near $3.91, a move that underscored either relief or curiosity about the pivot. After-hours trading remained flat relative to the day’s close, signaling cautious enthusiasm rather than a sustained breakout. Year-to-date, the stock has fallen more than 20%, mirroring a broader rout in assets tied to digital markets and a disconnect between crypto prices and traditional equities.
The company’s evolution traces back to a bold bet on ether and tokenized assets. The entity originally acquired Ether (CRYPTO: ETH) holdings after extending its biotech roots into the crypto space around mid-2025. The strategy later evolved toward tokenized real assets, with a notable pivot announced in December to bring real-world assets on-chain through tokenization rather than maintaining a crypto-heavy treasury alone. This pivot laid the groundwork for tangible experiments in asset-backed tokenization, including ventures into tokenized aircraft assets.
Among the notable initiatives is Eurus Aero Token I, a token tied to two commercial jet engines leased to a major U.S. carrier. The engines are among the first tangible asset classes on Forum’s radar as it builds a platform intended to connect real-world assets with on-chain representation. The approach seeks to marry investor access to physical assets with the efficiency and transparency of blockchain-based issuance and settlement. The move also includes expanding the company’s asset register, with Ether holdings forming a historical base for its capitalization strategy and governance framework.
Industry observers have noted that the crypto-treasury concept, once a darling of speculative investors, has faced headwinds amid a broader downturn in crypto markets. As a result, Forum’s rebranding appears part of a larger trend toward tokenization firms seeking regulated, asset-backed exposure rather than concentrated bets on cryptocurrency prices. The strategy also aligns with market demand for governance structures and regulatory-compliant pathways to on-chain asset ownership, which could appeal to institutional participants wary of crypto volatility while still seeking on-chain liquidity and transparency.
The story of ETHZilla’s evolution—from biotech–crypto hybrid to a tokenization-focused platform—also reflects how market perception has shifted since the height of the crypto treasury trend. The company’s investor base has included notable names such as Peter Thiel’s Founders Fund, which had taken a stake in ETHZilla but subsequently exited amid the sector-wide reevaluation of crypto treasury holdings. That exit underscores the risk-reward calculus now guiding capital toward on-chain representations of real assets rather than pure crypto holdings.
As Forum Markets advances, the road ahead will hinge on regulatory clarity, Nasdaq’s approval of the FRMM ticker, and the platform’s ability to demonstrate scalable integrations with traditional financial markets. The company’s financials, asset mix, and partnerships will be closely watched for signs that tokenization can deliver predictable income streams and governance that investors can rely on within a regulated context. The pivot is ambitious, but it sits at the nexus of what many see as the future of capital markets: on-chain, asset-backed, and governed by transparent rules.
Key takeaways
- The rebrand marks a strategic shift from a crypto-treasury approach to a tokenization-focused platform aiming to connect traditional capital markets with blockchain-backed real assets.
- Forum Markets will trade under FRMM after Nasdaq approval, reflecting the company’s transition to a regulated, asset-backed model rather than a pure crypto-positioning strategy.
- Investor reaction was positive in the short term, with ETHZilla’s shares rising about 13% on the news, though the year-to-date performance remains negative amid broader crypto market volatility.
- The pivot encompasses tangible asset ventures, including Eurus Aero Token I tied to two jet engines leased to a U.S. air carrier, illustrating the real-world use case the company envisions for on-chain tokenization.
- Past investor dynamics—such as the exit of notable backers like Founders Fund—highlight evolving risk assessments as markets shift toward regulated asset-backed on-chain structures.
Tickers mentioned: $ETH, $FRMM, $ETHZ
Sentiment: Neutral
Price impact: Positive. The rebrand news drove ETHZilla shares up about 13% intraday, signaling initial investor optimism about the strategic pivot.
Market context: The move comes as crypto equities face volatility and a broader reassessment of crypto-treasury strategies, with a growing interest in tokenization of real-world assets as a potential hedge against crypto price swings and as a path to regulated, on-chain liquidity.
Why it matters
The Forum Markets transformation is significant because it signals a broader shift in how market participants view on-chain access to real assets. Tokenization promises to unlock liquidity for otherwise illiquid assets, provided there is a robust governance and regulatory framework. If Forum can demonstrate scale, transparent custody, and reliable on-chain settlement for assets like engines or other tangible collateral, it could provide a template for other asset-backed token offerings, attracting institutional capital that has remained cautious about direct crypto exposure.
The narrative around real-world asset (RWA) tokenization is gaining traction as a way to marry the efficiency and transparency of blockchain with the familiar governance structures of traditional markets. Forum’s emphasis on regulated infrastructure and on-chain governance aims to address concerns about custody, valuation, and compliance that have historically limited institutional participation in tokenized assets. While the path to broad adoption remains uncertain, the company’s approach aligns with investor interest in assets that combine on-chain accessibility with real-world collateral and governed frameworks.
On a practical level, the Jet Engine token and other RWAs under development could serve as early proofs of concept for what tokenized asset markets can look like in the near term. However, the sector’s success will depend on regulatory clarity, the demonstration of credible risk controls, and the ability to deliver consistent, scalable tokenization that adheres to traditional financial standards. Forum’s leadership has framed the pivot as a deliberate move to build institutional-grade products, which could attract larger clients if the platform proves capable of meeting stringent due diligence and reporting requirements.
What to watch next
- Nasdaq approval and the market open date for the FRMM ticker, signaling the formal transition to Forum Markets’ new branding and platform focus.
- Progress and governance milestones around Eurus Aero Token I and other RWAs, including third-party audits and asset-backed valuation disclosures.
- Updates on partnerships or client onboarding that demonstrate real-world use cases for tokenized assets within regulated ecosystems.
- Regulatory developments related to tokenized assets and on-chain infrastructure that could impact custody, settlement, and reporting requirements.
- Subsequent trading performance of FRMM and any material changes in the company’s asset mix or financing structure.
Sources & verification
- Official press release announcing ETHZilla’s rename to Forum Markets and the FRMM ticker transition.
- Details on Eurus Aero Token I and the tokenization of two commercial jet engines.
- CoinGecko data on ETH holdings and ETHZilla’s ranking as a corporate holder of Ether.
- Cointelegraph coverage of ETHZilla’s pivot, including discussions of Founders Fund’s stake adjustments.
- Public market data showing Wednesday’s stock move to about $3.91 and after-hours trading behavior.
What the story means for investors and the market
Forum Markets’ rebranding to FRMM and its pivot toward real-world asset tokenization could shape how investors assess crypto-linked equities. If the company can demonstrate credible asset backing, regulatory compliance, and scalable on-chain processes, it may attract institutional participants seeking regulated exposure to tokenized assets rather than pure crypto bets. The path requires navigating the complexities of asset valuation, custody, and governance, but the potential payoff—broader market liquidity for tangible assets via on-chain tools—could be meaningful for the trajectory of tokenization across traditional markets.
What to watch next
- Nasdaq approval and FRMM trading start date
- Progress on Eurus Aero Token I and other RWAs
- Regulatory guidance impacting on-chain asset tokenization
- Institutional partnerships and asset pipelines announced by Forum
TLDR
- 21Shares has listed the STRC ETP on Euronext Amsterdam under the ticker STRC NA.
- The product gives European investors exposure to Strategy’s preferred stock linked to its Bitcoin treasury.
- Strategy currently holds 717,722 BTC valued at about $47 billion dollars.
- The preferred stock offers a variable dividend set at an annualized rate of 11.25%.
- 21Shares designed the ETP to allow access through standard brokerage accounts.
21Shares has launched a new exchange-traded product that gives European investors exposure to Strategy’s preferred stock. The product trades under the ticker STRC NA on Euronext Amsterdam. The listing expands access to Strategy’s Bitcoin-backed yield structure through a regulated exchange vehicle.
The company will list the 21Shares Strategy Yield ETP on Thursday. It will offer both institutional and retail investors access through standard brokerage accounts.
21Shares structured the product to track Strategy’s Variable Rate Series A Perpetual “Stretch” Preferred Stock. The firm designed the wrapper to simplify access to the underlying preferred shares.
Strategy holds 717,722 BTC in its corporate treasury. The holdings carry a market value of about $47 billion.
The preferred stock offers a variable dividend set at an annualized rate of 11.25%. The dividend links to Strategy’s Bitcoin treasury operations.
21Shares said the ETP acts as a cash-flow bridge between traditional finance and digital assets. The firm aims to combine equity exposure with crypto-linked yield.
Strategy, STRC ETP Expands Bitcoin-Linked Equity Access
21Shares confirmed that the STRC ETP provides exposure to Strategy’s preferred equity rather than direct Bitcoin ownership. The product references the same income stream tied to Strategy’s Bitcoin reserves. However, investors access it through an exchange-traded structure. The listing takes place on Euronext Amsterdam under the ticker STRC NA.
The company stated that the structure removes the need to purchase the preferred shares directly. As a result, investors can trade the instrument through conventional brokerage platforms. The firm said the wrapper increases operational ease for European market participants. It also aligns the product with existing exchange standards.
21Shares President Duncan Moir addressed the launch in a company statement. He said, “By combining high income potential with a familiar exchange-traded structure, STRC offers both institutional and retail investors an efficient and accessible way to add yield to their portfolios.”
Moir added that the product marks the company’s first equity-linked instrument. He said it extends the firm’s digital asset expertise into equity exposure tied to the Bitcoin ecosystem.
21Shares Broadens Product Suite Across Europe and the US
21Shares has operated since 2018 and manages about $5.3 billion in assets. The firm oversees 60 ETPs listed across 13 exchanges as of Monday.
The company continues to expand its global footprint through new listings. It launched the 21Shares Spot SUI ETF under the ticker TSUI on Nasdaq this week.
The new US listing follows a series of recent exchange-traded launches. The firm has focused on regulated crypto-linked products for institutional and retail investors.
21Shares described the Strategy yield product as part of its broader access strategy. The company said it seeks to provide straightforward exposure to digital asset markets.
Moir stated, “Since our inception, we have focused on providing straightforward access to digital assets.” He added that the new product extends that approach into equity-linked exposure tied to Strategy’s Bitcoin treasury.
TLDR:
- Bitcoin faces continued structural pressure amid inactive stablecoin liquidity.
- Stablecoin Supply Ratio shows negative readings across short, medium, and long-term oscillators.
- Price rebounds struggle as capital remains in stablecoins instead of spot exposure.
- Market shift depends on renewed stablecoin demand, not short-term price momentum.
Bitcoin continues to trade under structural pressure, with the Stablecoin Supply Ratio (SSR) remaining negative across 90-day, 200-day, and 365-day oscillators.
Following a peak above $120,000 mid-year, Bitcoin’s price shifted from expansion to contraction, producing successive lower highs into late Q4 and early Q1.
The break below the zero line signaled a structural change in liquidity, reflecting deeper market conditions rather than temporary fluctuations.
Stablecoin Supply Remains Dormant Despite Available Capital
A compressed SSR indicates that stablecoin supply is large compared to Bitcoin’s market capitalization. During expansion phases, rising oscillator readings signal capital moving from stablecoins into Bitcoin, supporting upward momentum.
Currently, stablecoin liquidity exists but remains largely inactive, failing to convert into spot exposure.
The negative SSR across all timeframes suggests that defensive positioning dominates the market. Investors appear hesitant, even as substantial capital remains ready to deploy.
Source: Cryptoquant
This creates a divergence where available liquidity does not translate into buying pressure or price support.
Earlier in the year, positive oscillator readings correlated with strong price structure and controlled volatility. Sustained upside movement occurred as stablecoin demand actively entered Bitcoin, reinforcing momentum. The current absence of such behavior demonstrates passive liquidity conditions.
Downside Volatility Persists Amid Limited Demand
Following the rollover of SSR readings across short, medium, and long-term oscillators, downside volatility has increased.
Price rebounds have lacked follow-through, reflecting insufficient absorption of supply during corrective phases. This trend shows that market participants are not actively deploying stablecoin capital to stabilize Bitcoin.
Historical on-chain data shows extended negative SSR regimes often precede larger inflection points. However, confirmation requires changes in investor behavior and renewed stablecoin deployment.
Without this, the market may continue under structural pressure, as liquidity remains passive despite readiness.
Market observers note that the next meaningful shift in Bitcoin will likely coincide with renewed stablecoin demand rather than purely price-driven momentum.
The system’s current configuration emphasizes the need for capital rotation to support price recovery. Recent market commentary also reflects the cautious stance of investors waiting for clearer signals.
The International Monetary Fund said Wednesday that US inflation will not return to the Federal Reserve’s 2% target until early 2027.
The assessment, part of the IMF’s first Article IV review of the Trump administration, signals that meaningful rate relief remains distant despite the president’s optimism.
IMF Flags Fiscal Risks
IMF Managing Director Kristalina Georgieva told reporters the US current account deficit is “too big.” The Fund estimates it at 3.5% to 4% of GDP in the near term.
But the IMF’s prescription clashes with the administration’s approach. Nigel Chalk, the Fund’s Western Hemisphere Director, said fiscal consolidation — not tariffs — is the best path to narrowing the deficit. The recommendation comes after the Supreme Court struck down Trump’s broad emergency tariffs as illegal, forcing the administration to invoke Section 122 of the Trade Act of 1974 for replacement levies.
The fiscal picture is stark. The IMF projects US federal deficits will remain between 7% and 8% of GDP in the coming years. That is more than double the levels targeted by Treasury Secretary Scott Bessent. Consolidated government debt is on track to reach 140% of GDP by 2031.
“The upward path for the public debt-GDP ratio and increasing levels of short-term debt-GDP represent a growing stability risk to the US and global economy,” the Fund warned.
Trump’s Rate Optimism vs. Structural Reality
The IMF review landed one day after Trump’s State of the Union address, where the president painted a rosy picture on borrowing costs. He claimed mortgage rates had hit four-year lows and that annual mortgage costs had dropped nearly $5,000 since he took office. He framed lower rates as the solution to what he called the “Biden-created housing problem.”
Yet the IMF’s numbers tell a different story. With inflation not reaching the Fed’s target until 2027 and fiscal deficits running at twice the administration’s own goals, the structural case for higher-for-longer rates is strengthening. The Fund pegged 2026 US growth at a resilient 2.4%, leaving the Fed little urgency to ease.
What It Means for Crypto
The implications for risk assets are clear. Sticky inflation and an expanding fiscal deficit reduce the probability of aggressive rate cuts this year. For crypto markets, which rallied on rate-cut expectations through late 2025, the IMF’s assessment reinforces caution.
The deeper irony is that the administration’s own fiscal expansion — including what the IMF notes are historically large tax cuts — is the primary driver of the deficit that keeps rates elevated. Trump wants lower rates but is pursuing policies that structurally prevent them.
The IMF stopped short of predicting a crisis, noting that “the risk of sovereign stress in the US is low.” But the trajectory it describes — rising debt, persistent deficits, delayed disinflation — points to an environment where rate relief comes slowly, if at all.
TLDR
- t54 Labs raised 5 million dollars in a seed funding round co-led by Franklin Templeton and Ripple.
- The company builds identity and risk tools for autonomous agents that conduct financial transactions.
- Anagram and PL Capital joined the round along with several crypto-focused investors.
- t54 operates on networks including XRP Ledger, Solana, and Base.
- The startup plans to hire engineers and a developer relations lead to expand its platform.
t54 Labs has secured $5 million in seed funding to build a trust layer for agentic finance. Anagram, PL Capital, and Franklin Templeton co-led the round with support from Ripple and others. Founder Chandler Fang confirmed the raise and outlined plans to expand infrastructure and hiring.
The San Francisco-based startup launched in January 2025 and focuses on identity and compliance tools for autonomous agents. Fang said no investor received board or advisory seats in the round. He declined to share the valuation or timeline details.
Franklin Templeton and Ripple Back t54’s Seed Financing
Anagram and PL Capital co-led the seed round alongside Franklin Templeton. Ripple, Virtuals Ventures, Blockchain Coinvestors, and ABCDE also participated in the financing. Fang described the raise as the company’s first external funding round.
Fang said t54 employs 12 staff members and plans new hires. The company will add two full-time engineers and one developer relations or business development lead. These hires will support product development and institutional partnerships.
Tony Pecore from Franklin Templeton addressed the investment in a statement. He said, “t54 is building the trust and verification framework that institutional finance will require.” He added that institutions need infrastructure as autonomous agents enter financial markets.
Fang stated that no investor secured governance rights in the company. He confirmed that the round structure remains undisclosed. He also declined to comment on valuation metrics.
Platform Targets Identity, Risk, and Credit for Autonomous Agents
t54 builds tools that verify and monitor AI agents conducting financial transactions. Fang said agents lack standardized identity checks and risk controls. He explained that businesses need accountability when autonomous systems move funds.
The platform includes four core components that address these gaps. It offers identity verification under a system called “know your agent.” It also runs a real-time risk engine that flags suspicious activity before settlement.
The company plans to extend credit lines to verified agents. Credit decisions will rely on identity records, risk scores, and transaction history. The system also combines identity, risk controls, and settlement in one interface.
Fang said, “We’re building the full trust stack that lets businesses hand financial operations to autonomous agents.”
He added that blockchain serves as a settlement and accountability layer. The infrastructure operates across multiple payment rails.
t54 currently runs on the XRP Ledger, Solana, and Base networks. The company also created x402-secure for the Coinbase-incubated x402 agent payment protocol. Last month, Evernorth announced plans to integrate t54’s tools into its XRP Ledger treasury operations.
Evernorth aims to raise over $1 billion for institutional XRP holdings. Under the partnership, Evernorth will use t54 infrastructure for autonomous treasury management. Fang said the collaboration expands institutional deployment of the platform.
A former contender for governor of California has been banned from Kalshi after betting on his own candidacy last year in violation of insider trading rules, the prediction market platform said on Wednesday.
According to a statement from Kalshi’s head of enforcement, Robert DeNault, the politician bet about $200 on his candidacy for governor of California and posted about it on X, leading to a five-year suspension on the prediction market platform and a $2,000 penalty.
Kalshi did not name the politician, but said he is no longer running for governor and is now running for Congress.
The description appears to fit Kyle Langford, a former Republican turned Democrat who is now running for election to the US House to represent California’s 26th Congressional District.
In an X post published on May 25, 2025, Langford shared a video of himself placing a $98.76 bet on Kalshi, wagering that he would win.
Kalshi said the account did not withdraw any profits and that the case was reported to the CFTC.
Cointelegraph reached out to Langford for further comment but didn’t receive an immediate response.
Meanwhile, Kalshi said it also handed out penalties to a YouTube editor who traded about $4,000 on YouTube stream markets between August and September 2025 — also violating Kalshi’s insider trading rules, resulting in a two-year penalty and a roughly $20,000 fine.
“Our surveillance systems flagged his near-perfect trading success on markets with low odds, which were statistically anomalous,” said Kalshi, which, with the help of other traders on the platform, identified where he worked and concluded that he likely had access to material non-public information.
While Kalshi didn’t name the YouTube editor, mainstream media have widely reported that the editor is Artem Kaptur, an employee of the popular YouTuber MrBeast.
Kalshi, a Commodity Futures Trading Commission-regulated platform, said it has investigated 200 cases and frozen several flagged accounts. It has more than a dozen active cases.
Earlier this month, Kalshi strengthened its surveillance efforts by establishing a surveillance audit committee and partnering with crypto trading surveillance platform Solidus Labs to “detect, investigate, and address market abuse.”
Those efforts come in response to an uptick in regulatory scrutiny of prediction markets as they enter the mainstream.
US lawmakers introduced a bill last month to restrict trading by government insiders after one Polymarket user made over $400,000 on bets tied to Venezuelan President Nicolás Maduro, placing wagers hours before US forces captured him in Caracas.
CFTC sends strong warning to future violators
On Thursday, CFTC Chair Mike Selig said the agency established a prediction markets advisory to collaborate with industry participants in efforts to catch insider traders.
Related: Polymarket users favor Meteora in bets over ZachXBT crypto takedown
Selig warned that those engaging in insider trading will face consequences:
“Let me be clear: if you attempt to engage in manipulation, fraud, or insider trading, we will find you and take action.”
Magazine: Did a Hong Kong fund kill Bitcoin? Bithumb’s ‘phantom’ BTC: Asia Express
Matt Western, chair of the UK’s Joint Committee on National Security Strategy, has urged the government to put a temporary halt on crypto donations to political parties, citing concerns over foreign interference.
In his Monday letter to Steve Reed, Secretary of State for Housing, Communities and Local Government, Western recommended adding a “temporary moratorium” on crypto donations to the upcoming Representation of the People Bill. The moratorium would be lifted once the Electoral Commission issues statutory guidance.
“We are concerned that foreign state intent to interfere in UK political finance may grow out to the next election,” Western said.
“As the security environment worsens and the UK’s military role in Europe grows, the value of influencing the UK’s political positions, for example on Ukraine, or US/EU relations, is likely to increase,” he added.
In January, a group of MPs who chair parliamentary committees — including Western — advocated for a full ban on crypto donations to be included in the Representation of the People Bill, warning that foreign states could use such payments to influence UK politics. However, the bill didn’t include a full ban when it was introduced to the House of Commons on Feb. 12.
Ban funds from crypto mixers and anonymous sources
Western argued that the Electoral Commission’s guidance should require political parties to use only crypto services registered with the Financial Conduct Authority, the UK’s financial services regulator.
Donations that involve the upstream use of mixers or come from an unknown source should be prohibited, according to Western, and political parties that receive crypto should convert it to fiat within 48 hours of receipt.
The next general election in the UK must be held by Aug. 15, 2029. Meanwhile, the Representation of the People Bill is scheduled to have a second reading in the House of Commons on March 2.
National police force needed to tackle foreign interference
Western’s letter also offers longer-term solutions, such as creating a national police force dedicated to overseeing political finance and combating foreign interference.
“Our evidence suggests that there is no clear national enforcement lead for political finance and foreign interference risk. Responsibilities are split across the Electoral Commission, the Metropolitan Police Service, Counter-Terror Policing, the National Crime Agency, MI5 and local police forces,” he said.
Related: Revolut among 4 companies chosen to test stablecoins in UK sandbox
Western also recommended source-of-wealth checks for donors, a review of sentencing for electoral finance offenses, higher penalties for breaches and enhanced powers for the Electoral Commission to compel institutions to disclose the sources of donation funds.
Reform UK became the first party to accept crypto donations in May last year, with leader Nigel Farage announcing at the Bitcoin 2025 conference in Las Vegas that the group is accepting Bitcoin (BTC) and other cryptocurrency contributions from eligible donors.
Magazine: Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warns
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