Custodia and Vantage Bank have proposed a token that automatically switches between a bank deposit and a stablecoin as it moves between participating banks and external users.

According to a white paper shared with Cointelegraph on Thursday, the token would operate as a deposit issued by a participating bank when held within a banking consortium and as a stablecoin backed by cash and short-term Treasurys when transferred outside the so-called Hazel network.

The companies said the system has been running on Ethereum (ETH) since March and is being tested by participating banks ahead of a broader rollout planned for later this year. The platform is designed to support tokenized deposits, stablecoins and other blockchain-based financial assets through a shared banking infrastructure.

According to the white paper, participating institutions would not need to replace existing core banking systems, with the platform operating alongside current ledgers and payment infrastructure.

The companies said it was designed for banks and credit unions of all sizes, including community banks, and aims to let institutions participate in tokenized payments without moving customer deposits outside the banking system.

Wyoming-based Custodia and Texas-based Vantage said they expect the Hazel network to become broadly available to banks and their customers in the fourth quarter of 2026.

Related: UK crypto advocates launch campaign against banks blocking exchange transfers

Banks seek alternatives to stablecoins

The proposal comes as banks increasingly look for ways to offer blockchain-based payment services without losing customer deposits to stablecoin issuers.

Earlier this month, The Wall Street Journal reported that The Clearing House, whose owners include JPMorgan Chase, Bank of America and Citigroup, plans to launch a tokenized deposit network in the first half of 2027, allowing banks to settle payments using blockchain-based representations of customer deposits.

Banking groups have also pushed back against legislation that could allow stablecoin issuers to offer yield-bearing products.

JPMorgan CEO Jamie Dimon recently said banks would continue fighting provisions in the CLARITY Act, a US crypto market structure bill, arguing they could let crypto companies compete for deposits without obtaining bank charters. The bill advanced out of the Senate Banking Committee in May and still requires approval from both chambers of Congress.

According to DefiLlama data, the total stablecoin market capitalization stands at roughly $315 billion, up from about $251 billion a year ago.

Source: DefiLlama

Magazine: Vietnam preps crypto pilot, HK pushes tokenization: Asia Express

Ether’s (ETH) exchange and derivatives data turned weaker over the past month. Binance recorded net inflows of 57,700 ETH, while futures open interest fell to a year-low of $10.3 billion from $15 billion, and the ratio of leveraged positions retreated sharply from their early June highs. 

The combination of rising exchange supply, muted new participation, and declining futures activity has led ETH analysts to forecast another wave of selling pressure below $1,700.

ETH inflows on Binance outpace new demand

Crypto analyst Pelin Ay noted that roughly 57,700 ETH flowed into Binance on a net basis over the past few days. Large inflows to the exchange often signal potential selling since Binance is one of the most liquid exchanges in the crypto market.

ETH exchange inflows, new depositors and fresh supply. Source: CryptoQuant

At the same time, the number of new ETH depositors is around 320 addresses, well below the levels seen during previous demand surges. The muted participation suggests limited new capital entering the market, leaving recent price stability dependent on existing holders.

The analyst noted that supply growth continues to offer a counterbalance. Daily ETH issuance stands near 2,791 ETH, a relatively low figure since Ethereum’s EIP-1559 upgrade in 2021. 

For now, exchange flow data paints a cautious picture. Ay said elevated net inflows raise the risk of another selling wave if Ether approaches resistance levels during any relief rally.

Related: BitMine boosts ETH holdings closer to $10B as bear market accumulation continues

Can Ether price defend its weekly demand zone?

ETH derivatives data have also cooled sharply in recent weeks. Ether futures open interest fell to $10.3 billion on Thursday from $15 billion a month ago, a decline of roughly 31%. The reading marks the lowest aggregate open interest across exchanges since April 2025.

Ether estimated leverage ratio for all exchanges. Source: CryptoQuant

The number of leverage positions has also retreated at a similar pace. The estimated leverage ratio (ELR) dropped to 0.83 from an all-time high of 1.10 on June 2, marking its largest leverage unwind since October 2025, when the metric slid from 0.72 to 0.56. 

Lower leverage often reduces the short-term volatility and speculative demand, but it also signals weaker conviction among traders.

ETH/USDT, one-week chart analysis. Source: Cointelegraph/TradingView

Ether’s weekly chart is down 30% over the past 42 days and continues to trade near the demand zone of $1,700 and $1,400. The April 2025 low at $1,384 stands as the nearest external liquidity target if price weakness continues. 

Below that level, the immediate area of interest is the demand zone from January 2023 between $1,289 and $1,071. 

From a market standpoint, crypto trader Ardi said last week that some technical bottoming signals are emerging for the altcoin. ETH recently touched the lower band of a long-term acceptance range that previously coincided with macro lows. 

The weekly relative strength index (RSI) sits near 31 after a daily RSI reading of 11 during the recent sell-off, its lowest level on record, which improves the chances of ETH bottoming in the current price range. 

ETH/USD weekly analysis by Ardi. Source: X

Ardi added that ETH/BTC remains a key chart metric to monitor, as the pair continues to trend lower. For now, the $1,400 to $1,700 range remains the area where buyers and sellers are most actively positioned.

Related: Altcoin selling tops $266B as capital rotates out of crypto: Is altseason extinct?

US financial regulators have taken another step in implementing the GENIUS Act, proposing rules that would require stablecoin issuers to follow identity-verification standards similar to those used by banks under federal law. The proposal is aimed at tightening Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) controls for stablecoin providers.

According to a notice of proposed rulemaking released jointly by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the National Credit Union Administration, and the US Treasury’s Financial Crimes Enforcement Network (FinCEN), stablecoin issuers would be expected to run customer identification programs that include verifying the identity of individuals seeking to “open an account,” maintaining related records, and checking whether a person is suspected of terrorist ties.

Key takeaways

• Several US agencies have proposed stablecoin-issuer identity verification requirements tied to AML/CFT obligations under the GENIUS Act.
• The rule would mirror bank-style expectations under the Bank Secrecy Act, including customer identity checks and recordkeeping.
• The proposal is open for public comment for 60 days after it is filed in the Federal Register on Monday.
• GENIUS implementation is expected to take effect 18 months after passage, or within 120 days after final regulations are issued.
• Congress is still working through broader crypto regulatory legislation, including the Digital Asset Market Clarity (CLARITY) Act.

Proposed “bank-like” customer identification for stablecoin users

The agencies said the proposed rule is part of the GENIUS Act’s implementation process, which was signed into law in July 2025. The joint notice was released on Thursday, and the proposal is expected to appear in the US Federal Register for public comment once officially filed.

At the center of the plan is a set of minimum standards drawn from the Bank Secrecy Act framework. Under these standards, regulated financial institutions are required to verify the identity of any person seeking to open an account, store the information, and assess whether the individual is suspected of being a terrorist or associated with a terrorist organization.

In practical terms for stablecoin issuers, the proposal signals that regulators expect stablecoin onboarding and user verification to look more like traditional financial onboarding—at least from an AML/CFT compliance perspective—even if stablecoin issuance and transfers differ from banking operations.

Why AML and CFT requirements are now the focal point

The GENIUS Act is designed to create a clearer compliance path for stablecoin activity in the United States. The agencies’ latest move targets how stablecoin providers handle AML/CFT obligations, including the foundational “know your customer” step that supports downstream monitoring and reporting.

The proposal matters for both compliance teams and market participants because identity verification is often the first layer of a broader compliance stack. Recordkeeping and screening for prohibited or high-risk associations can affect onboarding workflows, documentation requirements, and how issuers manage data retention and audits.

The timing also highlights the pace at which regulators are working through GENIUS-related obligations: this proposal follows earlier actions by Treasury and the FDIC to define other compliance elements under the same law.

For background, Treasury has already proposed AML and CFT requirements related to illicit finance as part of GENIUS implementation. Separately, earlier FDIC guidance suggested that insurance for corporate deposits of stablecoin issuers would not extend to stablecoin holders, underscoring that regulators are approaching stablecoin treatment through multiple, separate policy levers rather than a single, unified regime.

Comment window and when GENIUS implementation could begin

Under the proposal, the agencies set a public comment period of 60 days after the rule is officially filed in the Federal Register on Monday. That comment window will determine whether stakeholders argue for adjustments to the identity-verification program requirements, the operational burden placed on issuers, or the compliance timeline.

The proposed rule is also linked to the broader implementation schedule for GENIUS. The law is expected to come into effect 18 months after it was signed into law, or within 120 days after federal authorities finalize regulations for implementation—whichever timeline arrives first.

As a result, issuers may need to plan ahead even while the rule is still open to comment, especially if compliance systems require redesign to support customer identification processes and documentation policies.

GENIUS advances while CLARITY remains unresolved

While GENIUS-specific rulemaking continues, the US Congress still has not set a defined path for passing the Digital Asset Market Clarity (CLARITY) Act. CLARITY is intended to reshape how financial agencies define and enforce crypto rules, a goal that has been widely discussed across Washington.

Earlier reporting indicated that many in the White House and Congress expect CLARITY to move forward by the August recess. However, concerns raised by Democrats—centered on potential conflicts of interest involving lawmakers and elected officials—could slow progress.

The contrast between the two tracks is notable: stablecoin regulation is moving forward through a targeted statute (GENIUS) with concrete agency rulemaking underway, while broader crypto market “clarity” continues to depend on additional congressional action and political negotiations.

What to watch next

Stablecoin issuers and compliance teams should closely monitor the Federal Register filing and the details of the final customer identification program requirements, especially how regulators expect verification and recordkeeping to operate in real-world onboarding flows. At the same time, investors should keep an eye on whether Congress progresses on CLARITY, since parallel regulatory frameworks could shape how stablecoins and other digital assets are governed in the years ahead.

Malta’s financial regulator has proposed a new legal category for decentralized autonomous organizations as part of a consultation on how decentralized finance could be regulated under the European Union’s crypto framework.

According to a discussion paper published by the Malta Financial Services Authority on June 12, the regulator has opened a public consultation running through July 10 that seeks industry feedback on a potential framework for DeFi activities.

The proposal introduces the concept of “software-based organizations,” a category that would cover DAOs and other blockchain-based entities governed primarily through software.

Rather than creating a separate legal framework exclusively for DAOs, the MFSA said software-based organizations could provide a legal structure that distinguishes the organization itself from the protocols and code it operates.

The regulator argued that separating those elements could help address governance and accountability issues that continue to emerge across DeFi projects.

Malta seeks legal structure for software-governed entities

Within the consultation paper, the MFSA noted that fully decentralized services generally remain outside the scope of the European Union’s Markets in Crypto-Assets regulation. At the same time, the regulator said many projects that identify as decentralized still retain elements of centralized control, making regulatory classification more complex.

“MiCA excludes fully decentralised models from its regulatory scope, meaning that projects without intermediaries or central control may not need to comply with MiCA.”

Building on Malta’s early involvement in digital asset regulation, including the introduction of a crypto framework in 2018, the proposal attempts to address questions that have become more pressing as regulators examine how DeFi systems operate in practice.

Recent research has added to those concerns. In March, a working paper from the European Central Bank found that governance and decision-making across four major DeFi protocols remained concentrated among a limited group of participants.

According to the ECB paper, that concentration could make it difficult for some projects to qualify as fully decentralized under MiCA.

EU scrutiny of DeFi grows ahead of MiCA enforcement

Elsewhere in Europe, policymakers continue reviewing whether MiCA adequately addresses decentralized finance. In May, the European Commission launched a targeted review of the regulation and requested feedback on several topics, including stablecoin interest payments, DeFi activity, and potential gaps that could require additional rules.

The discussion arrives as EU regulators prepare for the final phase of MiCA implementation. As previously reported by crypto.news, the transition period ends on July 1, 2026, after which crypto exchanges, brokers, and wallet providers without authorization will no longer be permitted to serve customers in the bloc.

According to the European Securities and Markets Authority, firms operating without a MiCA license after the deadline would be in breach of EU law.

ESMA also said providers that fail to obtain authorization should establish orderly wind-down plans and help customers transfer assets to either authorized firms or self-hosted wallets.

Data cited by Hogan Lovells illustrates the scale of the transition. The law firm reported that Europe had more than 3,000 virtual asset service providers in 2024, yet only 194 authorized crypto-asset service providers, including credit institutions, had obtained approval by May 2026.

Against that backdrop, Malta’s consultation adds another piece to the ongoing debate over how European regulators should treat organizations that operate through code while still maintaining identifiable governance structures.

TLDR:

• Algorand will roll out native Falcon-1024 account support in its Q3 2026 protocol release.
• Hybrid accounts combining elliptic-curve and Falcon signatures offer dual classical and quantum protection.
• A post-quantum VRF replacement is under active research, with a paper expected by early 2027.
• France’s ANSSI will stop certifying non-quantum-safe products from 2027, adding regulatory urgency.

Algorand quantum computing resistance is now a formal priority, with the Algorand Foundation announcing a structured roadmap to secure its blockchain against future quantum threats by end of 2027.

The plan covers user accounts, wallets, custody systems, and core consensus infrastructure. First milestones are set to begin rolling out in Q3 2026, positioning Algorand among the most proactive blockchain networks preparing for the post-quantum era.

Falcon-1024 Accounts and Hybrid Cryptography Lead the 2026 Rollout

The foundation’s immediate focus centers on native Falcon-1024 account support, scheduled for the Q3 2026 protocol release.

Unlike earlier Falcon implementations built on LogicSignatures, native accounts will integrate directly with the ledger and developer tooling. Support will extend to Algorand’s SDKs, AlgoKit, and Pera Wallet within the same release window.

A key design choice is the hybrid account model, combining traditional elliptic-curve signatures with lattice-based Falcon signatures.

The foundation chose this approach because post-quantum schemes have not yet accumulated decades of real-world security testing. Hybrid accounts provide layered protection against both classical and quantum-era attack vectors simultaneously.

Algorand Foundation CTO Bruno Martins outlined the broader vision behind the rollout. “Algorand’s roadmap reflects a belief that security should be designed for the future,” Martins wrote.

“With the first milestones launching in 2026 and broad deployment targeted for the end of 2027, Algorand is taking concrete steps toward a future where users, developers, and institutions can build with confidence.”

Multi-signature accounts will also receive upgrades under the 2026 roadmap. Institutional users will be able to configure m-of-n quorum policies mixing classical, pure-Falcon, and hybrid keys across participants.

This capability targets treasury management and high-stakes financial operations ahead of native multi-scheme multisig support.

Consensus and VRF Research Push Toward Full Quantum Resilience by 2027

Beyond user accounts, the foundation is addressing the cryptographic layer powering Algorand’s consensus mechanism.

The current Verifiable Random Function relies on elliptic-curve cryptography, which remains vulnerable to quantum attacks.

Chief Scientific Officer Chris Peikert is leading research into a post-quantum VRF replacement, with a research paper targeted for early 2027 publication.

Consensus messaging itself also depends on Ed25519 signatures, which carry the same quantum vulnerability. The foundation is evaluating hybrid models using both Ed25519 and Falcon signatures for consensus messages during the transition period. Key and signature size remains the primary engineering challenge under active analysis.

Martins was direct about the industry-wide stakes. “As a custodian of a global blockchain network, the Algorand Foundation takes that threat seriously and has been researching and preparing for several years,” he wrote.

He added that the foundation does not embrace alarmism, given that post-quantum countermeasures still lack the battle-testing of established systems like RSA and elliptic-curve cryptography.

France’s cybersecurity agency ANSSI recently announced it would stop certifying products lacking quantum-safe encryption from 2027, adding regulatory weight to the timeline. ANSSI Chief of Staff Samih Souissi noted the issue extends well beyond technical concerns.

“It’s not only a technical issue,” Souissi said. “It’s a matter of governance, industrial planning, regulation, and sovereignty.”

Algorand’s roadmap, initiated with State Proofs in 2022, now targets broad deployment precisely as that global compliance deadline approaches.

Key takeaways:

• Bitcoin’s sudden decoupling from a strong Nasdaq index highlights shifting capital flows into the AI sector.
• A strengthening US dollar and high Treasury yields are weighing heavily on non-yielding crypto assets.

Bitcoin (BTC) faced a 7% correction after failing to reclaim the $67,200 level on Monday, triggering $330 million liquidations in bullish leveraged positions. More concerningly, the drop happened while the Nasdaq 100 index showed strength, trading 1% away from its all-time high. Should Bitcoin traders brace for a $60,000 retest?

Nasdaq 100 futures (left) vs. Bitcoin / USD. Source: TradingView

The bullish momentum in the stock market likely came from the memorandum of understanding signed by US President Donald Trump and Iran’s President Masoud Pezeshkian. Crude oil prices fell to their lowest level in 15 weeks to $74, easing inflation risks. Moreover, US job market data boosted investors’ morale as continuing jobless claims held flat at 1.81 million.

Bitcoin’s decoupling from tech stocks coincides with US Federal Reserve (Fed) Chair Kevin Warsh’s remarks on Wednesday. The term “price stability” was cited by Warsh on multiple occasions, leading investors to believe that the new Fed mandate will keep a closer eye on inflation trends, according to CNBC. The US 5-year Treasury yield remained relatively high at 4.21%.

Gold / USD (left) vs. US dollar strength index (right). Source: TradingView

The US dollar strengthened against a basket of foreign currencies, signaling confidence in the US government’s strategy to sustain economic growth despite inflationary pressures. The move hurts non-yielding assets, since fixed income remains profitable longer, as seen in gold prices trading down 3.3%.

Bitcoin perpetual futures annualized funding rate. Source: Laevitas

Demand for bullish leveraged Bitcoin positions has faded since June 4, indicating a lack of confidence after the crash from $73,700 to $61,300 in just three days. Bitcoin’s bearish momentum contrasts with rising demand in the artificial intelligence sector. SpaceX (SPCX US) market capitalization soared to $2.4 trillion within days of its IPO.

AI sector narratives contrast with weak Bitcoin narratives

Intel (INTC US) shares jumped 10% on Thursday after President Trump announced that Apple (APPL US) had agreed to work with the chipmaker to build its processors. Memory chip and data storage producers Micron (MU US) and SK Hynix (000660 KS) have also recently joined the select list of companies valued at $1 trillion or higher.

Source: X/JoeCarlasare

According to Joe Carlasare, commercial litigator and Bitcoin supporter, traders’ sentiment is currently worse than it was during the FTX exchange collapse. For Carlasare, nearly every asset class was struggling back in November 2022 due to the macroeconomic backdrop. This time around, the “narratives that convinced people to buy Bitcoin have broken down”.

Related: Bitcoin’s deeply discounted versus AI-stocks, but hawkish Fed risk lingers–Bitwise

Bitcoin’s presence in the traditional finance industry is far more mature than during the previous halving cycle. The US-listed spot Bitcoin exchange-traded funds (ETFs) accumulated over $102 billion in assets, and major financial institutions initiated Bitcoin investment offerings to clients, including Morgan Stanley, Bank of America and Goldman Sachs.

A retest of the $60,000 level should not be ruled out as the AI sector stays in the spotlight with massive investments and potential new IPOs and follow-on offerings, but institutional demand for Bitcoin will likely dictate price trends.

Ireland has identified crypto assets as a “very significant” money laundering and terrorism financing risk and has committed to introducing industry standards governing crypto-related sources of funds by the second half of 2027.

According to Ireland’s Department of Finance, the policy forms part of an implementation plan released alongside the country’s latest National Risk Assessment, the first government review in seven years to examine risks linked to digital assets.

The assessment said the growth of crypto-related fraud, money laundering prosecutions, and financial crime involving digital assets has increased pressure on authorities to strengthen oversight.

The report stated that crypto assets present challenges beyond criminal financing. Irish officials warned that digital assets can facilitate sanctions evasion, complicate tax enforcement efforts, and create opportunities for corruption involving officials responsible for supervising the sector. 

At the same time, the assessment pointed to weaknesses stemming from inconsistent international regulation and activity occurring in less-regulated segments such as decentralized finance.

Although Ireland is part of the European Union, the report noted that the country still lacks some of the regulatory and legislative measures adopted in other major jurisdictions to address risks tied to the crypto industry.

New compliance standards are scheduled before 2027

Under the implementation plan, Irish authorities intend to establish industry standards covering the acceptance of crypto-related activities as a source of funds by the latter half of 2027. The proposal forms part of a wider effort to strengthen anti-money laundering and counter-terrorism financing controls across the financial sector.

Data from the Central Bank of Ireland cited in the assessment showed that roughly 10% of the country’s population had invested in crypto assets as of December, highlighting the growing role of digital assets in the domestic financial system.

Recent enforcement actions have already brought compliance shortcomings into focus. In November 2025, the Central Bank of Ireland fined Coinbase Europe Limited approximately $24 million for Anti-Money Laundering and Countering the Financing of Terrorism breaches. The regulator said the company failed to promptly report deficiencies in its transaction monitoring system.

Separately, the assessment highlighted concerns that crypto is being used more frequently in payments connected to corruption. Political donations involving digital assets, however, have already been restricted in Ireland. In 2022, policymakers proposed a ban preventing Irish political parties from accepting cryptocurrencies, including Bitcoin, Ether, and privacy-focused tokens.

Regulators increase focus on crypto crime controls

Ireland’s review arrives as regulators in several jurisdictions tighten supervision of crypto businesses through anti-money-laundering frameworks.

Earlier this year, Zimbabwe placed crypto firms under the supervision of the Reserve Bank of Zimbabwe through Statutory Instrument 99 of 2026. The rules require businesses involved in buying, selling, transferring, or safeguarding digital assets to register as Virtual Asset Service Providers and comply with financial crime controls.

Industry compliance standards have also become stricter, according to a May report preview from Chainalysis. The blockchain analytics firm found that nearly 47% of organizations entering the market in 2026 adopted alerting standards that would have ranked among the top 10% most stringent settings in 2020.

Chainalysis reported that monitoring of direct exposure to illicit funds has become relatively consistent across regions. The company said the remaining challenge lies in tracking indirect exposure, where funds move through intermediary wallets before reaching a platform. 

According to Chainalysis, alert thresholds for indirect exposure linked to ransomware, scams, darknet markets, fraud operations, and sanctioned jurisdictions are often set 10 to 20 times higher than thresholds applied to direct exposure, leaving potential gaps that criminals can exploit.