Nethermind has ended its LayerZero verifier role and moved its cross-chain operations to Chainlink after reviewing the two infrastructure providers.

Nethermind said Wednesday that it had migrated away from its decentralized verifier network operations and joined Chainlink as a node operator and strategic technology provider.

The company will help operate Chainlink’s network while supplying engineering tools, infrastructure services, and integration support to blockchain developers. Nethermind said the decision followed an “extensive review,” but it did not publish the review or explain which technical and operational factors determined the result.

As part of the change, Nethermind will concentrate its cross-chain work on Chainlink’s Cross-Chain Interoperability Protocol. CEO Daniel Celeda described the move as a long-term infrastructure decision tied to the responsibilities carried by node operators.

“Being a node operator carries real responsibility for a network’s reliability, and that’s consistent with how we approach every engineering commitment we make.”

Neither company disclosed the financial terms of the arrangement. Nethermind also did not provide a deadline for completing the migration, saying only that it would issue updates as the process continued.

Nethermind’s Chainlink role replaces LayerZero verification

Within LayerZero, decentralized verifier networks independently check whether messages sent between blockchains are genuine and unchanged. Applications can choose which DVNs verify their messages and set the number of approvals needed before a transaction proceeds.

LayerZero’s documentation describes each DVN as a combination of smart contracts and off-chain systems. Once a message leaves its source blockchain, the selected verifiers confirm its digital fingerprint before the message can be committed and executed on another network.

Nethermind had served as one of the infrastructure operators available under that model. Its own website previously listed LayerZero DVNs among the cross-chain services run through its globally distributed infrastructure.

Under the Chainlink arrangement, Nethermind will instead operate a node within Chainlink’s network. Chainlink says its CCIP system uses independent node operators, transaction limits and a separate risk-management network to monitor cross-chain activity.

Reportedly, the move represented a decision by a major LayerZero infrastructure operator to use Chainlink’s “secure-by-default architecture.” Because the description came from Chainlink, it does not independently establish that one system eliminates the technical, governance, or operational risks found in cross-chain infrastructure.

Celeda said Nethermind has historically made “deliberate, long-term bets” on infrastructure that it believes will support on-chain financial services. Consolidating the firm’s cross-chain work around CCIP followed the same approach, he added.

LayerZero migrations followed the $292 million rsETH attack

Nethermind’s decision arrives four months after hackers drained 116,500 rsETH, worth about $290 million at the time, from Kelp DAO’s LayerZero-powered bridge.

The April 18 attack involved a forged cross-chain message and a single-verifier configuration. The attacker created unbacked rsETH and later placed much of it into Aave lending positions to borrow wrapped Ether, spreading losses beyond the bridge itself.

In May, Kelp DAO announced an rsETH migration to Chainlink while disputing LayerZero’s account of the security setup. Kelp said LayerZero had known about its 1-of-1 verifier arrangement and had previously treated the configuration as secure.

LayerZero CEO Bryan Pellegrino rejected Kelp’s claims. He said the protocol initially used a multi-verifier setup involving LayerZero Labs and Google before changing it to a single verifier, a configuration he said LayerZero had not recommended for production.

After the attack, LayerZero said it would stop approving messages for applications secured by only one verifier and would move affected projects toward configurations with multiple DVNs. LayerZero also attributed the incident to a compromised verifier rather than a flaw in its core messaging protocol.

Nethermind has not said whether the Kelp exploit triggered its review. Its announcement did not identify a security failure at LayerZero.

Other large projects have made comparable decisions since the attack. BitGo selected Chainlink in August as the exclusive cross-chain provider for Wrapped Bitcoin, replacing LayerZero across a WBTC ecosystem then valued at about $7.3 billion. As previously reported by crypto.news, the announcement brought the value covered by publicly disclosed LayerZero-to-Chainlink migrations to nearly $15 billion.

Aave adopted CCIP in July as the default system for cross-chain functions across its app and Stable Vaults. The protocol already used the service for GHO stablecoin transfers and governance messages before expanding the CCIP integration to deposits, withdrawals, vault rebalancing, and asset movements.

Wyoming adds a U.S. public-sector angle

For U.S. users, the closest public-sector comparison comes from Wyoming’s Frontier Stable Token, or FRNT. The Wyoming Stable Token Commission said on Aug. 18 that it had completed its migration from LayerZero to Chainlink following a state security review.

FRNT is issued by a U.S. public entity and is available on eight blockchains, including Ethereum, Solana, Base, Arbitrum, and Avalanche. Wyoming holds its reserves in cash and short-term U.S. Treasury securities, while reserve income supports the state’s School Foundation Program.

The commission named disclosure practices and operational security among its concerns about LayerZero. Executive Director Anthony Apollo said CCIP was the only system assessed by the state that met its security and reliability requirements “across the board.”

Under a multiyear agreement, Chainlink has become the exclusive cross-chain provider for FRNT, and the state has deprecated its LayerZero bridge. The Wyoming security review was not released publicly, leaving its full criteria and technical findings unavailable.

LayerZero said it respected Wyoming’s decision and was assisting with the transition. A company spokesperson said LayerZero had strengthened its security approach in recent months but did not address the state commission’s specific disclosure concerns.

Nethermind supports core Ethereum infrastructure

Founded in 2017, Nethermind develops one of Ethereum’s main execution clients, software used by network nodes to process transactions and maintain Ethereum’s state. The firm employs more than 200 people across client development, cryptography, blockchain security, formal verification, and institutional infrastructure.

According to Nethermind, its software supports more than 16,000 Ethereum validators and over $5 billion in delegated assets. Its infrastructure clients and partners include EtherFi, Gnosis, Lido, StarkWare, World, and Arbitrum.

Nethermind also contributes to Ethereum and Starknet development while providing smart-contract audits, research, and engineering services to financial institutions and crypto protocols. The company said its new Chainlink role will include technical support for developers integrating cross-chain services, alongside its responsibility for operating network infrastructure.

The Office of the Comptroller of the Currency has set a November target for completing its GENIUS Act regulations after receiving industry feedback on its proposed stablecoin framework.

Crypto journalist Eleanor Terrett reported in an Aug. 19 X post that Comptroller of the Currency Jonathan Gould disclosed the timetable during the Wyoming Blockchain Symposium, an event presented by SALT and Kraken in Jackson Hole.

According to Terrett, Gould said the OCC would adjust the final regulations in response to comments from cryptocurrency companies and other industry participants. Her post did not identify which requirements the agency may revise or whether the November target applies to every rule that the OCC must issue under the GENIUS Act.

Gould also said the agency’s digital asset approval activity had increased eightfold compared with the Biden administration, according to the post. Terrett did not specify whether he was referring to charter approvals, licensing decisions, or another category of regulatory action.

Addressing the former administration’s approach, Gould reportedly described efforts to remove risk from the banking system as “extremely shortsighted.” The comptroller has previously argued that regulators should manage financial risks instead of trying to prevent banks from entering lawful business areas.

OCC rules would govern the stablecoin lifecycle

The OCC released its main GENIUS Act proposal on Feb. 25 before the notice appeared in the Federal Register on March 2. A 60-day comment period followed, giving banks, stablecoin companies, and other interested parties until May 1 to respond.

As crypto.news previously reported, the proposal covers the full operating cycle of a payment stablecoin, including issuance, reserve management, redemption, supervision, and the process for closing an issuer.

Under the proposed framework, issuers supervised by the OCC would have to maintain eligible reserve assets and redeem stablecoins at par. The draft also contains requirements for liquidity, risk controls, audits, reports, custody, and regulatory examinations.

Application procedures would apply to nonbank companies seeking recognition as federal qualified payment stablecoin issuers. Separate provisions cover subsidiaries of national banks and federal savings associations, certain state-qualified issuers under OCC authority, and foreign issuers seeking access to the American market.

The agency also proposed a capital and operational backstop, although the final amount and structure could change following public feedback. Additional amendments would place stablecoin issuers within existing OCC rules covering capital standards, assessments, enforcement proceedings, and corrective action.

Bank Secrecy Act, anti-money-laundering, and Office of Foreign Assets Control requirements were excluded from the February proposal. The OCC said it would handle the missing provisions through separate rulemaking coordinated with the Treasury Department.

During June, the agency issued proposals addressing anti-money-laundering, counter-terrorist financing, and sanctions risk management for permitted stablecoin issuers. Another proposal covering customer identification remains open for comments through Aug. 21, according to the OCC’s rulemaking tracker.

November target follows a missed statutory deadline

President Donald Trump signed the GENIUS Act into law on July 18, 2025, creating the first federal US framework written specifically for payment stablecoins.

The law instructed federal regulators to issue implementing regulations within one year. However, the statutory deadline passed on July 18, 2026, without the OCC, Federal Reserve, Federal Deposit Insurance Corporation, or National Credit Union Administration completing all required rules.

Ten proposed rulemakings were pending across federal agencies when the deadline expired, with several comment periods scheduled to continue beyond July. Regulators have not announced a common date for completing the remaining measures.

Under the statute, the payment stablecoin framework takes effect on Jan. 18, 2027, or 120 days after the primary federal regulators issue final implementing rules, whichever comes first. Finalizing the OCC’s proposal in November would not independently start the 120-day period unless the other responsible agencies also complete their regulations.

The law generally restricts US payment stablecoin issuance to permitted issuers. Digital asset service providers will also be unable to offer or sell noncompliant payment stablecoins to American customers once the applicable provisions take effect.

Federal and state regulators will divide responsibility according to the issuer’s structure. The OCC will oversee federally qualified nonbank issuers, stablecoin-issuing subsidiaries of national banks and federal savings associations, and certain state-qualified issuers that come under its authority.

Foreign issuers face another approval route before US platforms can distribute their stablecoins. The GENIUS Act requires them to operate under a comparable regulatory system and meet conditions involving reserves, supervision, and US regulatory access.

Treasury proposal defines access to US customers

Separate regulations proposed by the Treasury Department on Aug. 17 address when payment stablecoins are issued, offered, or sold in the United States. The definitions will help determine when an issuer requires a federal or state license and when a platform becomes subject to distribution restrictions.

Treasury also proposed standards for digital asset service providers that make foreign-issued stablecoins available to American users. The department opened the proposal for public comment and said responses would help it clarify the territorial reach of the law.

Under the proposal, companies would generally need authorization when their activities involve US customers or take place within the country. Treasury also requested feedback on transactions involving intermediaries, decentralized systems, and platforms that may serve customers in several jurisdictions.

Treasury Secretary Scott Bessent said the department was working to implement the framework enacted by Congress while accepting comments from businesses and other interested parties. The proposal does not replace the OCC rule because the two measures cover different parts of the GENIUS Act.

OCC crypto charter applications have increased

The November timetable comes as the OCC processes more applications from companies planning to provide digital asset services under federal banking supervision.

In August, the agency said it had received 40 de novo bank applications during the previous 18 months, including proposed national trust banks. Gould compared the total with an annual average of fewer than four charter applications between 2011 and 2024.

The OCC’s public licensing tracker recently listed 13 pending digital asset applications. Applicants included Payward National Trust Company, Revolut Bank US, EDX Trust, Agora National Trust Bank, and PAYO Digital Bank.

As reported earlier in August, Gould said companies conducting legally permitted activities should have a path into the federal banking system. The OCC has said it often decides complete charter applications within 120 days, although preliminary approval does not authorize an institution to open.

Several cryptocurrency companies have received conditional national trust bank approvals since December 2025. The applicants have included Circle, Ripple, Paxos, BitGo, and Fidelity Digital Assets, while other companies have continued through the application process.

National trust banks can provide custody, fiduciary, settlement, and asset-servicing functions under OCC supervision. Their charters do not automatically allow them to accept ordinary customer deposits or provide conventional loans in the same manner as full-service commercial banks.

On Aug. 14, the OCC conditionally approved World Liberty Financial’s application to establish World Liberty Trust Company. The proposed institution would issue and redeem the USD1 stablecoin, manage its reserves, and provide custody services to institutional clients.

Preliminary approval allows World Liberty to organize the trust bank but does not permit it to begin operations. According to the OCC’s decision, the company must satisfy its preopening requirements, maintain at least $20 million in eligible capital, apply for Federal Reserve Bank stock, and receive written authorization before opening.

Burnham aims to bridge relations between the two nations

Bitcoin (BTC) saw its highest levels since the start of June after Wednesday’s Wall Street open as markets reacted to a US government liquidity move.

Key points:

• Bitcoin spikes 6% on the day to hit $69,749, its highest level since June 2.
• The US Treasury plans to at least double the maximum size of debt buyback operations to $4 billion. This might fuel a broader risk-asset rally.
• A lack of stablecoin liquidity on exchanges means that BTC price upside remains limited, says Bitfinex. Stablecoin liquidity has decreased by $14 billion since May.

Bitcoin surges as US bond yields fall on buyback plan

Data from TradingView showed BTC/USD passing $69,700 on Bitstamp, up 6% on the day.

BTC/USD one-day chart. Source: Cointelegraph/TradingView

US stock markets opened higher after the US Treasury Department announced that it would at least double the level of government debt buybacks, from $2 billion to a minimum of $4 billion per operation, beginning on Sept. 9. 

The US 30-year bond yield, which had hit its highest level in nearly 20 years on Tuesday, fell immediately on the news and was at 5.19% at the time of writing, down 9bps.

“This increase in buyback operation sizes reflects Treasury’s desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants, as evidenced by the significant volume of high-quality offers Treasury routinely receives in longer-dated buyback operations,” an official press release stated.

US 30-year bond yields one-day chart. Source: Cointelegraph/TradingView

Increased debt buybacks mean that the US government will add liquidity as a buyer to the longer-term debt market. Earlier, analysts pointed to increasing corporate debt, especially in the AI sector, as one motivator of the yield surge. 

“This is NOT a debt paydown, it is just a rearrangement of the maturity schedule of Treasuries,” Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said, quoted by CNBC.

The announcement comes as US national debt approaches the symbolic milestone of $40 trillion. On Tuesday, trading resource The Kobeissi Letter noted that interest payments on the debt pile had reached $1.4 trillion over the past 12 months alone, tripling since 2020.

“If rates remain stable, interest payments are set to rise to $1.7 trillion by November 2028,” it forecast in a post on X alongside data from Bank of America.

US Treasury interest payment data. Source: The Kobeissi Letter on X.com

Stablecoin liquidity keeping Bitcoin rebound in check: Bitfinex

Discussing current BTC price strength versus the S&P 500, which hit new all-time highs last week, crypto exchange Bitfinex pointed to Bitcoin’s own liquidity problem. Stablecoin supplies on exchanges, it noted, had decreased by $14 billion since May.

Related: Bitcoin has ‘largely purged’ froth that preceded 50% drop from $126K: BlackRock

“Until stablecoin supply turns, the rally stays unfunded,” it told X followers.

Stablecoin liquidity acts as “dry powder” waiting on the sidelines to be deployed into cryptoassets, and its absence reflects a belief among investors that major opportunities are not yet imminent.

Data from onchain analytics platform CryptoQuant’s Stablecoin Supply Ratio (SSR) indicator, which measures Bitcoin’s market cap relative to the aggregate stablecoin market cap, reflects tightening liquidity conditions over the past six weeks in particular.

A higher SSR means that stablecoin liquidity is leaving exchanges, and since June 30, it has risen from 9.82 to 11.69. The highest SSR reading of 2026 was observed on Jan. 14 at 12.83.

Bitcoin SSR data. Source: CryptoQuant

XRP’s increased network activity contrasts with weak price momentum as EX DeFi promotes cloud mining as an alternative way for holders to seek passive income.

XRP’s price momentum has recently slowed, hovering around the $1 mark; however, a surge in network activity — specifically a more than 24% increase in active addresses — has helped bolster investor sentiment.

As traders continue to close out positions, XRP faces persistent selling pressure, keeping the asset’s price near recent lows.

With market momentum waning and short sellers gaining dominance due to XRP’s lackluster price performance, investors are increasingly seeking more sustainable ways to generate returns from their holdings without frequent trading or exposure to high market volatility.

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XRP active addresses jump 24.1% in 24 hours; network activity heats up

According to the latest on-chain data, the number of active XRP addresses rose from 27,665 to 34,318 within a 24-hour period — an increase of approximately 6,653, or 24.1%. Despite this growth in daily active addresses, the price of XRP remained largely unaffected.

Daily active addresses on the XRP Ledger have recently surged to nearly 50,000 — a two-month high. Given the market’s focus on the divergence between price performance and network activity, XRP remains a key point of interest for investors.

How long until XRP returns to $2?

After recently dipping below the $1 mark, XRP’s price has continued to fluctuate around this critical level, raising concerns among some holders regarding its future trajectory.

However, in contrast to the sluggish price action, XRP’s network activity remains robust. The rapid increase in active addresses indicates that, even amidst cautious investor sentiment, a significant number of users continue to actively engage with the XRP network. If network usage remains high and translates into actual demand, it could provide support for future price performance. For long-term XRP holders, rather than simply waiting for the price to rise above $2, an increasing number of investors are seeking more diversified ways to generate yield from their digital assets.

EX DeFi: Another yield-generating avenue for XRP investors

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