Crypto World
New York Life Partners with Centrifuge on Tokenized Corporate Bonds

New York Life Investment Management, a $807 billion asset manager, is putting a high-yield corporate bond strategy onchain for the first time. The firm partnered with tokenization platform Centrifuge to launch the NYLIM Anemoy U.S. High Yield Corporate Bond Segregated Portfolio, ticker HYB. The… Read the full story at The Defiant
Crypto World
Inflation peaked in May as energy prices fell in June, Kalshi traders think
Cuts of beef are displayed at Handy Market on May 14, 2026 in Burbank, California.
Justin Sullivan | Getty Images
With oil and gas prices falling in the wake of the detente between the U.S. and Iran, prediction market traders now think inflation has peaked.
Speculators on prediction market platform Kalshi think there’s only a 28% chance that headline inflation this year peaks above 4.2%, which was the annual rate of increase in the Consumer Price Index in May.
The next CPI report, measuring inflation in June, is due for release by the Bureau of Labor Statistics (BLS) on July 14.
The contract on Kalshi asks if traders think CPI will deliver a reading above various percentages in 2026. Contracts are resolved using the CPI data released each month by the BLS.
The inflation outlook has eased primarily due to recent declines in its main driver: energy prices. After shooting higher after the start of the U.S.-Iran war jn late February and the subsequent closure of the Strait of Hormuz, gas and oil prices have started to retreat after the partial reopening of the waterway.
Average national gasoline prices as of Wednesday stood at $3.84, according to AAA, down from more than $4.50 at their peak. That reflects weaker U.S. crude oil prices, which have fallen below $70 per barrel for the first time since the war began.
Energy prices in May accounted for 60% of CPI’s month-over-month increase.
Now the decline in gas prices is leading Kalshi traders to think that CPI in June will show prices falling by 0.2% compared with May, in-line with Wall Street consensus estimates.
Crypto World
Coinmetro files for reorganization, blames failure of provider
Coinmetro, an Estonian-based cryptocurrency exchange, has claimed that it has filed “a reorganisation application to the Estonian court.”
In its announcement, it states that this is required because of “an extraordinary situation caused by a failure of one of our financial service providers.”
It further claims that it had already suspended user registrations, deposits, and withdrawals back on June 22.
Interestingly, in the Estonian register both Coinmetro OÜ and Coinmetro Group OÜ are past due on annual reports. Coinmetro Group OÜ is also listed as having a tax debt.
The announcement didn’t disclose which financial service partner led to this failure, and Coinmetro has yet to respond to Protos’ questions regarding that issue.
During a YouTube based “Ask Me Anything” with Coinmetro Chief Executive (and beneficial owner) Kevin Murcko, he claimed that it was actually more than one provider that failed, despite the announcement only claiming one.
He also claimed that there was a multi-year internal investigation, suggesting that this failure happened well before this current announcement.
Additionally, he stated that he originally believed that Coinmetro’s balance sheet was strong enough that this wasn’t originally material, but has become material as Coinmetro has approached the July 1 licensure deadline for compliance with Markets in Crypto Assets regulations.
Prime Trust
The Prime Trust bankruptcy estate (PCT Litigation Trust) filed an adversary proceeding against Coinmetro in August of last year.
This proceeding attempted to clawback withdrawals made in the days immediately preceding bankruptcy.
This proceeding claims that Prime transferred $1,205,751.10 to Coinmetro in the days before Prime’s failure.
Read more: Prime Trust accused of using customer funds to cover lost deposits
The mistakes and fraud committed by Prime apparently make it extraordinarily difficult to determine who was owed which funds from Prime Trust.
This means that Coinmetro didn’t necessarily withdraw more funds than it deposited because of the failure, and Prime Trust is trying to clawback many of the withdrawals from the final days.
Protos reached out to Coinmetro for comment, but it didn’t respond before publication.
Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.
Crypto World
XBTFX Launches MCP Server and Agent Stack for Crypto and CFD Trading Workflows
[PRESS RELEASE – St. John’s, Antigua and Barbuda, July 1st, 2026]
XBTFX has announced the launch of its MCP Server and Skills Hub, expanding its developer ecosystem following the introduction of its REST and WebSocket Trading API. The new infrastructure enables compatible software agents, coding assistants, and automation frameworks to connect with eligible live XBTFX trading accounts through structured, authenticated workflows, allowing supported applications to retrieve account information, access market data, and submit structured trading requests.
Intelligent software agents and automation tools are increasingly being used to analyze markets, process news, write code, and support research workflows. However, most remain separate from the trading account itself. While they can assist with analysis, they typically cannot retrieve live account data, inspect open positions, monitor margin, or submit structured account requests without additional integration.
The newly released infrastructure is designed to connect those two environments. XBTFX is not launching a proprietary decision engine, automated strategy, or black-box execution system. Users define their own logic, instructions, permissions, and risk controls, while XBTFX provides authenticated account access, market-data connectivity, and execution infrastructure.
Built as Infrastructure, Not a Trading Strategy
The stack is designed to make trading accounts programmable through structured, authenticated workflows. When a user interacts with a compatible client or software agent to check exposure, retrieve a market price, calculate position size, or prepare a trade with defined parameters, the client converts that instruction into a structured tool call or API request. The natural-language instruction itself is not sent directly to the trading account.
XBTFX authenticates and processes the corresponding account, market-data, or trading request. Users remain responsible for their strategy logic, configurations, credentials, and risk management.
This distinction is especially important for crypto and active CFD traders, where automation and around-the-clock monitoring can be useful while user-defined risk controls remain essential.
Three Ways to Connect
The MCP Server acts as a structured tool layer between compatible clients and the XBTFX Trading API. Supported clients can access balances, margin, positions, orders, history, instrument data, prices and, depending on permissions, submit structured trading requests such as opening or closing positions and modifying stop-loss or take-profit levels.
The Skills Hub provides reusable instructions, endpoint definitions, implementation examples, and developer guidance for software agents and applications that do not connect through MCP directly, including workflows using LangChain, CrewAI, OpenClaw, Claude Code, and custom agent implementations.
The Trading API provides REST and WebSocket access for developers building dashboards, automated strategies, signal-to-execution systems, reporting tools, and account-management applications.
Together, the three access paths provide traders and developers with different ways to connect automated workflows and software agents with eligible XBTFX accounts, depending on their technical setup and use case.
Built for Crypto, Forex, and Around-the-Clock Market Monitoring
The integration layer supports workflows across forex, cryptocurrency CFDs, metals, indices, energies, and stocks, with access to more than 400 instruments. Available instruments and trading conditions depend on the account linked to the API key.
XBTFX also supports BTC, ETH, and USDT-denominated trading accounts alongside major fiat account currencies, giving traders and developers a crypto-denominated environment for automated monitoring, account management, and structured trading workflows.
For crypto-focused traders, the always-on nature of digital asset markets is a key part of the use case. When a software agent or automated process is configured to run continuously, it can monitor market data, account conditions, margin, and exposure outside conventional trading hours and respond according to predefined instructions, validation rules, and risk controls.
XBTFX does not provide trading recommendations through the MCP Server or Skills Hub, and the integration does not determine when a user should buy or sell any instrument.
Developed With HuracanAI
The MCP Server, Skills Hub, Trading API, and supporting execution architecture were jointly developed by XBTFX and HuracanAI, a financial technology firm specializing in brokerage infrastructure, liquidity connectivity, trading bridges, APIs, and software-agent systems.
The collaboration combines brokerage execution infrastructure with agent connectivity, supporting a more programmable model for traders and developers working with live account environments.
Control Stays With the Account Holder
Each XBTFX API key is associated with an individual eligible trading account. Users can manage API keys through the XBTFX Console and revoke them if they are no longer required or may have been exposed.
Because the integration operates with live trading accounts, XBTFX recommends testing account-information and market-data functions first, using limited exposure, and reviewing agent behavior before enabling broader automated workflows.
“Modern software agents and automation tools have become increasingly capable of supporting research and operational workflows, but they have generally remained separate from the trading account itself,” said – Peter Speros, XBTFX executive. “Our infrastructure is designed to provide structured, authenticated access to account information, market data, and account functions while keeping control with the account holder.”
Getting Started
To connect a compatible software agent or supported application, users can open or select an eligible live XBTFX trading account, generate an account-bound API key through the XBTFX Console, and connect through the MCP Server, Skills Hub, or Trading API.
The MCP Server, Skills Hub, and Trading API are available without a separate API subscription or per-request fee. Normal spreads, commissions, financing charges, and other trading costs continue to apply. Documentation is available through the XBTFX Developer Hub and Developer Documentation.
About XBTFX
XBTFX is a multi-asset online broker providing access to global financial markets through contracts for difference. Its product offering includes forex, cryptocurrency CFDs, metals, indices, energies, and stocks. XBTFX serves retail traders, active traders, strategy developers, and technology-focused market participants with trading platforms, execution infrastructure, automation tools, APIs, and developer resources.
For more information, visit the official website.
Risk Warning
Trading leveraged products, including CFDs, involves substantial risk and may not be suitable for all investors. AI agents and automated applications may misunderstand instructions, use incorrect parameters, encounter software or connectivity failures, or behave unexpectedly. Connecting an AI agent to a trading account does not reduce market risk, guarantee execution quality, or improve trading performance. Nothing here constitutes financial, investment, or trading advice. Past performance is not indicative of future results.
The post XBTFX Launches MCP Server and Agent Stack for Crypto and CFD Trading Workflows appeared first on CryptoPotato.
Crypto World
Trump defends $1.4B crypto windfall as CLARITY Act odds slide
U.S. President Donald Trump has defended the financial gains disclosed in his latest filings after records showed he earned at least $1.4 billion from crypto-related ventures, while market expectations for the CLARITY Act’s passage this year have weakened.
Summary
- Trump defended his investment gains after disclosures showed at least $1.4 billion in crypto-related income.
- Polymarket odds for the CLARITY Act passing this year have fallen to 39% amid ethics debate.
- Senate Democrats and Elizabeth Warren have renewed scrutiny of Trump’s crypto business interests.
According to Trump’s remarks to reporters before departing for a trip, the president attributed his investment gains to the strong performance of the stock market rather than to any personal trading decisions. He said his finances are managed by investment funds and added that he is not directly involved in making investment decisions.
The comments came shortly after financial disclosures for 2025 showed Trump reported more than $1.4 billion in income tied to cryptocurrency ventures. According to the filing, much of that income came from licensing agreements connected to the TRUMP meme coin and sales of the World Liberty Financial (WLFI) token.
Although the filing detailed substantial crypto earnings, Trump did not address those revenues directly in his remarks. Instead, he pointed to the stock market rally and noted that many investors had benefited from rising asset prices. His comments also followed speculation in recent weeks that he has been actively trading through investment accounts, although he stated that outside fund managers oversee those assets.
The Trump administration has also maintained investments outside the crypto sector. Among them is Intel, whose shares have risen sharply since the administration disclosed its position in the company.
Political scrutiny has intensified around Trump’s crypto business
The latest disclosure arrives as lawmakers continue debating ethics rules tied to digital asset legislation in Congress.
According to Polymarket data, the probability of President Trump signing the CLARITY Act into law in 2026 has fallen to 39%, indicating traders now see a lower chance of the market structure bill clearing Congress this year.

The disclosure has also renewed criticism from Democratic lawmakers. Following the release, Senator Elizabeth Warren argued that the legislation should include safeguards preventing Trump and his family from continuing to profit from crypto while federal digital asset policy is under consideration.
As previously reported by crypto.news, Senate Democrats recently requested hearings into a reported $500 million investment in World Liberty Financial linked to the United Arab Emirates. The lawmakers questioned whether the transaction had any connection to later U.S. policy decisions involving arms sales and expanded AI chip access for the UAE.
The newly released financial filing adds an official record to that debate by showing crypto generated more reported income for Trump in 2025 than the business segments most closely associated with his personal brand.
Some officials still expect crypto legislation to advance
Despite weakening prediction market odds, several policymakers continue to express confidence that digital asset legislation can still move forward before the end of the summer.
As previously reported by crypto.news, Congress faces a limited legislative window before the Senate begins its recess, leaving the CLARITY Act with only a short period to advance. The timing has become more important as negotiations continue over whether an ethics provision should be included in the final legislation.
Separately, Hester Peirce has maintained an optimistic outlook. According to her recent comments, the U.S. Securities and Exchange Commission commissioner believes Congress can still pass the CLARITY Act during the summer, even as political disagreements over ethics rules continue.
Crypto World
Bitcoin (BTC) climbs toward $60,000 level after Fed Chair Warsh said inflation risks has come down
Bitcoin climbed back toward the $60,000 level on Wednesday after Federal Reserve Chair Kevin Warsh said inflation risks had eased while reaffirming the central bank’s commitment to returning inflation to its 2% target.
Warsh declined to provide guidance on the Federal Reserve’s next interest-rate decision, saying policymakers would debate incoming data at their meeting in four weekds, during a panel discussion at the European Central Bank’s annual forum in Sintra, Portugal.
Instead, he emphasized that the Fed remained focused on price stability.
“Inflation risks have come down,” Warsh said. “If there were people in households or the business sector, in the financial markets, who thought that this central bank was going to be comfortable with an inflation objective above 2%, well, I guess they’d be disappointed. We’re going to deliver price stability in the U.S.”
Bitcoin pared earlier losses to trade back around the $60,000 level, an increase of more than 2% over the past 24 hours, according to CoinDesk Data.
Crypto World
Goliath Ventures CEO pleads guilty in $400 million crypto Ponzi case
Christopher Alexander Delgado, the former CEO of Goliath Ventures, pleaded guilty to fraud and money laundering charges stemming from a crypto investment scheme prosecutors said stole at least $400 million from investors.
Delgado, a Florida resident, pleaded guilty Tuesday to conspiracy to commit wire fraud, wire fraud and money laundering, according to the U.S. Attorney’s Office for the Middle District of Florida.
He faces up to 20 years in prison for each fraud count and up to 10 years on the money laundering count.
Goliath Ventures, formerly Gen-Z Venture Firm, solicited investors from at least January 2023 through January 2026 with pitches for monthly payouts it claimed came from crypto liquidity pools, prosecutors said. Delgado admitted in his plea agreement to causing at least $250 million in investor losses.
Investor money was used to pay earlier investors, fund withdrawals and cover luxury spending, according to prosecutors. Delgado bought at least 6 residential properties worth between $1.15 million and $8.5 million each, plus Lamborghinis, Rolls-Royces, Rolex watches, dozens of Louis Vuitton bags and custom Tiffany jewelry, with the funds.
Crypto World
Bank of Korea Governor Calls for Tokenized Government Bonds
Hyun Song Shin, the governor of the Bank of Korea, praised tokenization for its ability to simplify the issuance and management of government bonds.
Shin said during a Wednesday panel discussion at the European Central Bank (ECB) Forum on Central Banking in Sintra, Portugal, that tokenized bonds would make it easier to verify collateral, credit the asset provider’s account and reverse transactions at the appropriate time.
“The big prize is tokenizing government bonds,” Shin said, adding that it is “much easier, much less prone to mistakes if you have everything tokenized.”
US Treasury debt is the largest tokenized real-world asset category, representing $14.6 billion, or about 46% of the $31.7 billion RWA market, according to data provider RWA.xyz.
Shin also outlined plans to bring tokenized government bonds, wholesale central bank digital currencies and tokenized commercial bank deposits on a unified ledger, as part of an extension to “Project Hangang,” a Bank of Korea-led pilot project testing a blockchain-based wholesale CBDC system.

Hyun Song Shin, governor of the Bank of Korea, speaks during a panel discussion at the ECB Forum on Central Banking. Source: YouTube
Tokenized government bonds may boost financial innovation: BIS
Government bond tokenization could improve market efficiency and support financial innovation, provided regulatory and infrastructure challenges are addressed, according to a July 2025 report by the Bank for International Settlements (BIS).
Related: Former BIS chief softens stance on stablecoins, backs coexistence with fiat
Government securities play a crucial role in the financial system, acting as a savings vehicle for households and firms and as collateral in a range of transactions, the report said, adding:
“By enabling the contingent execution of actions, tokenisation can help to enhance the efficiency of markets, reduce settlement risk, broaden investment access and spur the creation of new financial services.”
The report examined 39 tokenized bonds, including 24 issued by corporations and 15 by governments. Compared with traditional, non-tokenized bonds, the BIS found “suggestive evidence” of lower bid-ask spreads and comparable issuance costs and yields.

Tokenized bonds vs conventional, non-tokenized bonds, liquidity, issuance costs. Source: BIS
Magazine: Guide to the top and emerging global crypto hubs: Mid-2026
Crypto World
AI Agents are Starting to Handle Money. This Blockchain Wants to Build Their Bank
For now, most AI agents still live inside safe boxes. They summarize documents. Write code. Search databases. Help customer support teams move faster.
In finance, they are already creeping into fraud detection, compliance, research, and back-office workflows. Cambridge Judge Business School found this year that 52% of financial firms are actively adopting agentic AI, with 23% already scaling or transforming around it.
Bond Labs, a blockchain superapp network, is betting on the next step. It wants AI agents to trade, borrow, lend, move funds, and eventually spend money across crypto and traditional payment rails.
The company has launched on 0G, an AI-native blockchain network, with a DeFi platform designed for both humans and autonomous AI agents.
Bond says its platform combines
- A spot decentralized exchange,
- Perpetuals exchange
- Lending and borrowing markets,
And also a planned neobank layer with fiat on/off ramps, global transfers, on-chain IBAN access, Visa debit cards, and yield-bearing accounts.
That is a large promise. It also arrives at a moment when the financial industry is trying to work out how much autonomy it can safely give to software that can reason, plan, and act.
The Agent Needs a Wallet
The idea behind Bond is simple enough. If AI agents are going to become economic actors, they need financial infrastructure.
A chatbot can tell a user how to rebalance a portfolio. An agent could, in theory, do it. It could move idle funds into a yield account, borrow against collateral, hedge exposure, or route money across chains and payment systems.
That shift requires more than a prompt window. It needs liquidity, execution venues, credit markets, identity checks, payment access, and risk controls.
Bond is trying to put those pieces into one environment.
Its DeFi layer includes a spot DEX based on Uniswap V3-style automated market-making, a perpetual DEX using a central limit order book model, and lending markets with dynamic interest rates.
The company also plans to add a neobank layer within the next three months, bringing fiat access, global transfers, Visa card functionality, and accounts connected to 0G Chain.
Bond also says it will build a real-world asset division, giving users and agents exposure to tokenised assets for trading, settlement, and investment.
In plain terms, Bond wants to be the financial operating system for AI agents.
The Money Is Following the Thesis
The launch comes with direct ecosystem support from 0G Labs.
Bond is backed by a $10 million incentive programme from 0G Labs, a $3.5 million direct investment, and a stated $50 million TVL target. The incentive programme will run over 12 months and will be tracked on-chain. Bond says AI-agent trades will be included in the rewards structure.
The goal is liquidity. Without it, an agent-facing financial platform is just an interface. With it, agents can actually execute trades, access lending markets, and move value without waiting for a human to manually approve every step.
“The vision of AI agents managing someone’s finances has been held back by fragmented infrastructure,” said Bond Labs CEO Taweh Beysolow. “Bond provides the missing layer DeFi primitives and a neobank where agents can trade, borrow, spend, and earn, all within a single platform.”
Michael Heinrich, CEO of 0G Labs, framed Bond as part of a wider AI economy.
“0G is building the foundational infrastructure for an AI-native economy, and a core part of that vision is giving autonomous agents the ability to transact, manage assets, and access financial services as easily as any human,” Heinrich said. “Bond is the first platform to fully realize that vision, combining institutional-grade DeFi with a user-friendly neobank, all on a blockchain designed from the ground up for AI agents.”
The Pipes Behind the Platform
Bond has also lined up infrastructure and liquidity partners.
The company says Turtle will support liquidity and incentive distribution, Re7 will act as a DeFi vault curator, Midas will provide vault infrastructure, and Wormhole will support cross-chain interoperability.
It has also named Cicada Capital, Diffuse, GSR, and Flow Traders as liquidity providers.
Those names are important because AI-agent finance will not work without deep markets. An agent that manages capital needs execution quality, reliable settlement, and enough liquidity to avoid poor pricing.
Essi, CEO of Turtle Club, said the pre-deposit campaign had to work for different types of participants.
“Bond is building a superapp for an audience that spans retail and institutional. The pre-deposits campaign needed DeFi-native LPs who could underwrite both ends. We structured it with the Bond team until the economics held without compromising what Bond was committing to its users. Proud to be working alongside them.”
The Risk Is No Longer Theoretical
Deloitte’s 2026 enterprise AI survey found that 74% of companies expect to use AI agents at least moderately by 2027. In finance, Cambridge found agentic AI adoption is already further along among fintechs than traditional institutions.
Regulators are watching the same trend. The Financial Stability Board has warned that AI is spreading across AML, KYC, fraud detection, credit risk, cybersecurity, portfolio management, and compliance.
The Bank of England has gone further, warning that autonomous agents could eventually transact for consumers, execute trading strategies, and amplify market volatility if many systems behave in similar ways.
That makes security central to Bond’s pitch. The company says it has taken a security-first approach, including smart contract audits by Hashlock. That will matter as DeFi platforms remain exposed to exploits, oracle failures, bridge risk, liquidity shocks, and bad incentive design.
The harder question is governance. If an AI agent makes a trade, approves a payment, or borrows against collateral, the system needs clear rules for consent, limits, liability, and emergency shutdowns.
Bond’s launch is an early test of whether AI agents can move from assistants to financial actors. The infrastructure is starting to appear.
But the market now has to prove that autonomous finance can work without turning speed into fragility.
The post AI Agents are Starting to Handle Money. This Blockchain Wants to Build Their Bank appeared first on BeInCrypto.
Crypto World
Bitcoin Price Prediction: BTC Risks Drop Toward $55K After $60K Breakdown
Bitcoin’s battle around the $60K region is entering a decisive phase after sellers are forcing a breakdown below this major support area. With momentum still favoring the sellers, traders are now watching whether demand can prevent a deeper correction toward the mid-$50K region.
Bitcoin Price Analysis: The Daily Chart
On the daily timeframe, BTC has extended its bearish trend after losing several major support zones. The recent rejection by the 200-day moving average around $80K and the breakdown of the 100-day moving average near $ 74 K have reinforced the longer-term downtrend, with both moving averages now sloping lower and acting as dynamic resistance.
The price is currently trading around $58.7K after breaking slightly below the $60K demand zone. This indicates that buyers have struggled to defend one of the market’s most important psychological levels. The next significant support lies around the $55K region, while a deeper correction could expose the broader demand area near $52K.
On the upside, Bitcoin would first need to reclaim the $60K level quickly before challenging the $66K to $68K resistance zone. Beyond that, the $72K to $74K area remains the primary barrier, as it coincides with the long-term moving averages. The broader bearish structure would only begin to improve if BTC manages to reclaim this region.

BTC/USDT 4-Hour Chart
The lower timeframe presents a similarly bearish picture. Bitcoin continues to trade inside a descending structure, respecting both the upper and lower boundaries throughout the recent decline. Every recovery attempt has produced another lower high, confirming that sellers remain in control.
The latest rejection from the $66K to $68K supply zone pushed BTC back toward the lower boundary of the channel. Price is now hovering around $58.7K, slightly beneath the $60K support area, increasing the probability of another test of lower liquidity and a breakdown of the channel structure.
Meanwhile, the RSI has formed a modest bullish divergence, with momentum making slightly higher lows while price printed fresh lows. Although this divergence could trigger a short-term relief bounce, it has yet to receive confirmation through a decisive breakout above nearby resistance.

On-Chain Analysis
Bitcoin’s Net Unrealized Profit/Loss (NUPL) has fallen sharply to approximately 0.09, placing the metric deep within the low-profit region shown on the chart.
NUPL measures the aggregate unrealized profit or loss held across the Bitcoin network. Higher readings generally reflect widespread investor optimism and elevated profitability, while lower values indicate shrinking profits and deteriorating market sentiment.
The current reading suggests that the majority of holders have seen a significant reduction in unrealized gains compared to previous months. Historically, such depressed NUPL levels have been associated with periods of capitulation or late-stage bear market conditions, when weak hands are gradually flushed out of the market.
While this does not guarantee an immediate reversal, it indicates that much of the speculative excess has already been removed. If selling pressure begins to ease and long-term investors continue accumulating, these historically depressed profitability levels could eventually provide the foundation for a broader recovery. Until price reclaims key resistance zones, however, the technical structure continues to favor the sellers.

The post Bitcoin Price Prediction: BTC Risks Drop Toward $55K After $60K Breakdown appeared first on CryptoPotato.
Crypto World
Could Open USD Crush Aave’s USDC Yields? Here’s What DeFi Users Need to Know
Open USD (OUSD) launched on Tuesday with more than 140 corporate backers, raising a pointed question for anyone earning yield on USD Coin (USDC) through Aave.
The new token lets businesses mint and redeem for free and routes its reserve income to partners. That model aims at Circle, yet the effects could reach the decentralized finance (DeFi) markets where USDC earns its keep.
How USDC Earns Yield on Aave
Lenders who supply USDC to Aave do not pay interest to Circle. They earn from borrowers who pay to withdraw USDC from the pool.
Aave ties those rates to utilization, the share of supplied USDC that borrowers have taken out. Once utilization pushes past its optimal point, supply rates climb fast to pull in deposits.
That makes borrowing demand the number that matters. USDC suppliers on Aave’s main Ethereum market earn around 3.4%, according to DefiLlama data, though the rate fluctuates with demand.
The same market paid mid-single digits and climbed near 18% at times in 2024.
Federal law pushes savers onchain in the first place. The GENIUS Act, signed in July 2025, bars stablecoin issuers from paying holders interest.
That stablecoin yield limit leaves lending venues like Aave as the main route to a return. Aave has since opened an institutional lending market for tokenized assets.
Why Open USD Could Pressure Those Yields
Open USD targets the demand side. Its backers include Visa, Mastercard, Stripe, Coinbase, and BlackRock, the networks that route much of the world’s business payments.
The design gives them a reason to switch. Partners keep most of the interest Open USD earns on its reserves. That income generated 99% of Circle’s 2024 revenue, its filing shows.
Coinbase is the clearest test. Circle paid it $908 million in 2024 to distribute USDC. The exchange also keeps every dollar of reserve income on balances held there.
Now, Coinbase backs the rival, and its Circle deal is set to renew in August.
Stripe has gone further and tied its platform to the token.
“Open USD will be the default stablecoin for businesses running on Stripe,” Will Gaybrick, President of Technology and Business at Stripe, said in the announcement.
Follow us on X to get the latest news as it happens
Stripe’s weight is not theoretical. Zach Abrams, who now leads Open Standard, cofounded Bridge, the stablecoin firm Stripe bought in early 2025.
If those firms route settlement flows through Open USD, demand that once leaned on USDC could soften. Lower USDC borrowing on Aave means lower utilization, which pulls down supply yields.
Circle built its lead as USDC’s corporate transfer growth outpaced Tether (USDT). Many of those same rails now back the rival. The catch is timing, since Open USD is not fully live and no Aave market lists it yet.
Circle’s Defense and What DeFi Users Should Watch
Circle argues its lead is hard to copy. Chief Executive Jeremy Allaire says scale and liquidity, built over the years, protect USDC.
“Stablecoin networks are platform and network effect businesses that are established over a long period of time, tend towards winner-take-most market structures, and resemble other internet platform utility markets,” Allaire wrote in a post.
USDC still holds deep exchange liquidity and licenses across the US and Europe. It has kept its European regulatory standing even as USDT retreats from the region. Its supply sits near $73 billion, behind USDT at about $184 billion.
History also gives Circle a talking point. Visa, Mastercard, and Stripe once backed Facebook’s Libra project in 2019, then walked away within months as regulators pushed back.
The sharpest immediate damage hit Circle’s stock, not USDC. Circle Internet Group (CRCL) fell about 17% on Tuesday and roughly 40% over the past month.
Its removal from the five major Russell Growth indexes added rules-based selling at the same time.
For DeFi users, the near-term steps are practical. They can track Aave utilization and rates on live dashboards. Spreading deposits across protocols and chains can lower single-venue risk.
Newer onchain yield strategies may also emerge as Open USD rolls out.
The coming months will test one question. Can Open USD pull enough demand from USDC to move Aave’s rates, or will Circle’s head start hold?
The post Could Open USD Crush Aave’s USDC Yields? Here’s What DeFi Users Need to Know appeared first on BeInCrypto.
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