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The AI Agent Economy Has an Identity Bottleneck: Blockchain Rails Could Solve It

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From NASA to Crypto: The Unlikely Journey of Benjamin Cowen

Artificial intelligence agents are becoming economic actors at a pace that outstrips the infrastructure around them, according to a16z crypto. In a recent post, the firm argued that the real bottleneck in the agent economy is no longer intelligence, but identity. 

Today’s agents can execute tasks and move money, yet they still lack standardized ways to prove their identity, demonstrate what they’re authorized to do, and more. That missing layer, the firm suggests, is where blockchains can come in.

From KYC to KYA: a16z Makes the Case for Onchain Identity for AI Agents

In a recent blog post, a16z noted that non-human agents already outnumber human employees by roughly 100 to 1 in financial services. Yet the agents remain “effectively unbanked.”

“They can interact with financial systems, but not in ways that are portable, verifiable, or trusted by default. They lack standardized ways to prove their permissions, operate independently across platforms, or bear liability for the actions they take,” the authors wrote.

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​​The missing piece, according to the post, is a shared identity layer for agents. This could essentially be an SSL equivalent that would standardize how they coordinate across platforms.

Today’s approaches, it noted, remain fragmented. According to a16z crypto, 

“While there are prominent attempts to solve this today, those approaches are fragmented: vertically integrated, fiat-first stacks on one side; crypto-native, open standards (like x402 and emerging agent identity proposals) on the other; and extensions of developer frameworks like MCP (model context protocol) that attempt to bridge application-layer identity. There is still no broadly adopted, interoperable way for one agent to prove to another who it represents, what it’s allowed to do, and how it gets paid.” 

The post outlined a key fix called “Know Your Agent” (KYA). The concept borrows from Know Your Customer (KYC). It calls for cryptographically signed credentials that link each agent to its principal, permissions, constraints, and reputation.

The firm added that blockchains can serve as a neutral coordination layer for agents. They offer portable identities, programmable wallets, and verifiable attestations that resolve across chat apps, APIs, and marketplaces. Without a common standard, a16z warns, merchants will keep blocking agents at the firewall.

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a16z also identified four additional gaps beyond identity: centralized control over AI governance, payment rails ill-suited to agent-to-agent commerce, the rising cost of verifying machine decisions at scale, and diminished user oversight as agents take on more autonomous workflows. 

It argued that blockchain-based tools, onchain governance, programmable stablecoin payments, cryptographic audit trails, and smart-contract-enforced permissions, can close these gaps and support a more trustworthy agent economy.

The post The AI Agent Economy Has an Identity Bottleneck: Blockchain Rails Could Solve It appeared first on BeInCrypto.

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Securitize adds former IMF representative Sunil Sabharwal to board

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Tokenized U.S. Treasuries keep RWA lead as tokenized equities accelerate

Securitize has appointed Sunil Sabharwal to its board of directors as the tokenization firm moves ahead with expansion plans. 

Summary

  • Securitize appointed Sunil Sabharwal, a former IMF representative, to its board of directors this week.
  • The company manages over $4 billion in on-chain assets for major financial institutions globally.
  • Securitize continues pursuing a public listing through its planned merger with Cantor Equity Partners II.

The company said the appointment adds experience in global finance, payments, and public policy at a time when tokenized asset platforms are drawing more institutional attention.

Sabharwal is a business executive and investor with a background in payments and financial services. He also served as a Senate-confirmed U.S. representative to the International Monetary Fund from 2016 to 2018.

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Securitize chief executive Carlos Domingo said Sabharwal brings experience from both the private and public sectors. Domingo said “Sunil’s career is defined by building and scaling financial infrastructure at a global level.”

He added that Sabharwal’s background in payments and international finance would support the company’s next phase of growth. Domingo said tokenization is moving from concept to market infrastructure, and that Sabharwal’s perspective would be useful as the firm expands.

Sabharwal currently serves on the boards of Thunes and TookiTaki. He also previously chaired payment companies Earthport and Ogone, which were later acquired by Visa and Ingenico.

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His background includes work across payments, cross-border finance, and strategic growth. That track record gives Securitize a board member with experience in both financial infrastructure and regulated markets.

Sabharwal also received the U.S. Treasury’s Distinguished Service Award during his public service. He was nominated by former President Barack Obama in 2016 and served mainly during President Donald Trump’s first term until 2018.

Since 2021, he has worked as an advisor and operating partner for the Blackstone Growth Equity Fund, according to LinkedIn. He also previously advised SpiceVC, an early backer of Securitize.

Securitize expands tokenized asset business

Securitize manages more than $4 billion in on-chain assets. Its platform supports tokenized products tied to firms including BlackRock, Apollo, BNY, Hamilton Lane, KKR, and VanEck.

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Among its best-known products is BlackRock’s BUIDL fund. The company has positioned itself as one of the larger players in the tokenized real-world asset market as institutions explore blockchain-based fund structures.

The board appointment comes as the company continues to build out that business. It also comes as market participants pay closer attention to firms that offer tokenized versions of traditional financial products.

Public listing plan remains in focus

Securitize is also pursuing a public market listing through a merger with Cantor Equity Partners II, a Cantor Fitzgerald-sponsored firm. The companies entered into a definitive acquisition agreement in October.

The deal would value Securitize at $1 billion. The combined company is expected to trade on Nasdaq under the ticker CEPT.

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The transaction would also give Securitize access to the $240 million raised by CEPT in its initial public offering. That planned listing remains a key part of the company’s growth strategy as it expands its presence in tokenized finance.

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Arbitrum freezes 30K ETH in KelpDAO hack as attacker routes funds to Bitcoin

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Arbitrum freezes 30K ETH in KelpDAO hack
Arbitrum freezes 30K ETH in KelpDAO hack
  • Arbitrum froze 30,766 ETH before it could be bridged out.
  • Attacker moved 75,701 ETH and began routing funds to Bitcoin.
  • Over $176 million is being laundered through multiple parallel flows.

Arbitrum has frozen a significant portion of funds linked to the KelpDAO exploit, even as the attacker moves to push the remaining assets beyond reach.

The Arbitrum Security Council confirmed it froze 30,766 ETH, valued at over $70 million at the time of action.

The funds were tied to an address associated with the KelpDAO attacker and were secured before they could be bridged out of the network.

The intervention came after coordination with law enforcement, suggesting authorities may already have leads on the exploiter’s identity.

A race against time

Blockchain investigators, including PeckShield, had flagged that the attacker was already attempting to move the funds off Arbitrum using a native bridge.

Had that transfer been completed, the ETH would likely have joined a much larger pool of stolen assets already in circulation across other chains.

By intervening when it did, Arbitrum prevented roughly 29% of the stolen funds from entering the laundering pipeline. However, the remaining assets were not as fortunate.

The KelpDAO exploit itself is estimated at around $290 million, making it one of the largest decentralized finance breaches of 2026.

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The attacker moved quickly after the initial exploit, splitting funds across multiple wallets and chains in an effort to reduce traceability.

Laundering shifts to Bitcoin

Following the freeze, the attacker accelerated efforts to move the remaining funds.

Data shows that approximately 75,701 ETH, worth about $175 million, was transferred to Ethereum mainnet.

From there, the funds began moving into Bitcoin through decentralized protocols like THORChain, Chainflip, and Umbra Cash, which allow direct cross-chain swaps without relying on centralized exchanges.

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PeckShield analysts observed that the attacker left only about 0.7 ETH in some wallets, just enough to cover transaction fees, while draining the rest into new routes.

This pattern reflects a high level of operational discipline and planning.

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Another $176 million portion of the stolen funds has also been actively moved in parallel transactions.

Rather than laundering everything in a single flow, the attacker appears to be running multiple streams at once.

This staggered approach reduces the risk of a single point of failure and makes recovery efforts more difficult.

Is the infamous North Korea’s Lazarus Group linked to the KelpDAO exploit?

The scale and coordination of the operation have led investigators to link the exploit to North Korea’s Lazarus Group, specifically a subgroup known as TraderTraitor.

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This attribution is based on transaction patterns and laundering techniques that match previous operations tied to the group.

Lazarus has a long history of targeting crypto platforms and using complex cross-chain strategies to obscure stolen funds.

The use of decentralized bridges and rapid asset conversion seen in the KelpDAO case fits that pattern closely.

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Coinbase Expands x402 With AI Agent App Store, Pushing Crypto Payments Into AI Infrastructure

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Coinbase Expands x402 With AI Agent App Store, Pushing Crypto Payments Into AI Infrastructure

Coinbase has launched Agent.market, an AI agent app store built on its x402 payment protocol, embedding permissionless stablecoin rails directly into AI infrastructure across seven service categories. As of April 21, 2026, approximately 69,000 active AI agents on x402 have already processed over 165 million transactions totaling $50 million in volume, figures that frame this as an infrastructure play, not a speculative product launch.

The core question now: whether Agent.market can become the default discovery and payment layer for autonomous AI agents, or whether fragmented developer ecosystems blunt adoption before the rails gain critical mass.

Key Takeaways:

  • What x402 is: An open payment protocol named after the unused HTTP 402 status code, enabling instant stablecoin micropayments over HTTP for APIs, apps, and AI agents – no accounts or subscriptions required.
  • What Agent.market adds: A permissionless app store spanning seven categories – reasoning, data, media, search, social, infrastructure, and trading – with providers including OpenAI, Bloomberg, CoinGecko, AWS Lambda, and Coinbase RAT.
  • What AI agents can now do: Autonomously discover, pay for, and chain together services using Agentic Wallets, without developer-preset API keys or manual billing setup.
  • Payment rail: USDC stablecoins on Base, with Coinbase’s Payments MCP enabling LLMs including Anthropic’s Claude and Google’s models to access blockchain wallets via x402.
  • Backing: The x402 Foundation, incubated under the Linux Foundation, counts over 20 institutional backers including Cloudflare, Stripe, AWS, Google, Visa, Circle, and the Solana Foundation.
  • Watch item: Google’s agentic payments protocol integration with x402 for single-tap USDC retail transactions – a signal that could accelerate volume materially.

Discover: The best crypto to diversify your portfolio with

How Coinbase x402 Agent.market Actually Works – and Why the Architecture Matters

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x402 was designed around a structural gap in the existing web: the HTTP 402 status code has existed since the early internet as a placeholder for payment-gated content, but was never implemented at scale.

Coinbase built x402 to fill that gap. When an AI agent hits a payment-required endpoint, x402 handles the USDC micropayment over HTTP instantly, without redirecting to a billing portal or requiring a pre-negotiated API key relationship.

Agent.market operationalizes that mechanic into a browsable catalog. Service providers can list without permission, which directly reduces the setup friction that has historically limited API commerce: x402 creator Erik Reppel stated the protocol “is reshaping customer acquisition activation costs for businesses, as robots can now access services at a very low setup cost without needing API keys.”

That framing matters; it redefines cost-of-acquisition for AI-facing businesses from human onboarding flows to machine-readable price discovery.

The seven-category structure – reasoning, data, media, search, social, infrastructure, and trading – maps directly onto what autonomous agents need to chain multi-step tasks. An agent could pull financial data from CoinGecko, process it through an OpenAI reasoning endpoint, execute a trade via Bankr, and log the transaction through QuickNode infrastructure, with every handoff settled in USDC on Base without human authorization at each step.

If adoption follows the arc of prior API marketplaces, the trading and data verticals will see volume concentration first – they carry the highest per-call value and the most time-sensitive payloads.

The failure mode to watch is latency and settlement finality at scale. x402’s prior 165 million transactions represent an average call value under $0.31 – the architecture is calibrated for micropayments, not bulk settlements. Whether it holds throughput as agent complexity and chain length increase is the open engineering question.

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The post Coinbase Expands x402 With AI Agent App Store, Pushing Crypto Payments Into AI Infrastructure appeared first on Cryptonews.

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The Real Product of DeFi Is Volatility

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The Real Product of DeFi Is Volatility

Decentralized Finance (DeFi) is often marketed as a parallel financial system built on transparency, efficiency, and permissionless access. Yet beneath these narratives lies a more fundamental driver—volatility. While traditional finance seeks to minimize instability, DeFi, in contrast, is structurally dependent on it. Volatility is not a byproduct of the system; it is, in many ways, the system’s core product.


Volatility as the Engine of Opportunity

At the heart of DeFi protocols such as Uniswap, Aave, and Compound lies a simple premise: market inefficiencies create profit opportunities. These inefficiencies are amplified by price fluctuations.

Without volatility, several foundational DeFi mechanisms would lose their purpose:

  • Arbitrage depends on price discrepancies across markets. Stable prices eliminate these gaps, leaving no room for profit extraction.
  • Yield farming relies on shifting capital toward higher returns, often driven by rapidly changing incentives and token valuations.
  • Liquidation cycles in lending protocols require price movements to trigger collateral thresholds.

In essence, volatility fuels the activity that sustains user engagement and capital flow within the ecosystem.


Liquidity Provision and the Cost of Stability

Liquidity providers (LPs) are often presented as passive participants earning fees. However, their returns are closely tied to market turbulence. In automated market makers (AMMs), price swings generate trading volume, which in turn produces fees.

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Yet this comes with a trade-off: impermanent loss. In low-volatility environments, LPs may see reduced trading activity and lower fee generation, while still being exposed to potential downside risks. Ironically, the more stable the market becomes, the less attractive liquidity provision can be.

This dynamic reveals a critical tension: DeFi protocols require stability to build trust, but depend on volatility to remain profitable.


The Feedback Loop of Instability

DeFi does not merely react to volatility—it amplifies it. Mechanisms embedded within protocols often create feedback loops:

  • Price drops trigger liquidations, which further push prices downward.
  • Yield incentives attract capital rapidly, only for it to exit just as quickly when returns diminish.
  • Leveraged positions magnify both gains and losses, increasing systemic sensitivity to price changes.

These cycles are not anomalies; they are intrinsic to how DeFi systems are designed. Platforms like MakerDAO and Curve Finance attempt to introduce stability through collateralization and specialized liquidity pools, yet even they cannot fully escape the gravitational pull of broader market volatility.


Stability as a Narrative, Not a Foundation

Stablecoins and low-volatility pools are often positioned as solutions to DeFi’s chaotic nature. However, even these instruments rely indirectly on volatility elsewhere in the system. For example, maintaining a stable peg frequently depends on arbitrage incentives—again requiring price discrepancies to function effectively.

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Thus, stability in DeFi is less a foundational property and more a constructed layer, supported by mechanisms that ultimately trace back to volatility.


Conclusion

The promise of DeFi is frequently framed around democratizing finance and reducing reliance on centralized institutions. While these goals are significant, they can obscure a more pragmatic reality: DeFi thrives on movement, not equilibrium.

Volatility is the fuel that powers arbitrage, sustains yield, and drives liquidations. Without it, the mechanisms that define DeFi would stall. Rather than viewing volatility as a problem to be solved, it may be more accurate to recognize it as the primary product being generated and consumed within the ecosystem.

Understanding this dynamic is essential for participants. Success in DeFi is not about avoiding chaos—it is about navigating it effectively.

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BitMEX Enables Off-Exchange Trading Via Zodia Custody

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BitMEX Enables Off-Exchange Trading Via Zodia Custody

BitMEX, a derivatives-focused cryptocurrency exchange, said it has secured a custody partner to enable asset segregation and trading with off-exchange assets.

The company announced Tuesday a partnership with Zodia Custody to allow traders to access derivatives while keeping collateral in segregated custody. The integration is immediately accessible via Interchange, Zodia Custody’s off-venue settlement solution.

BitMEX CEO Stephan Lutz told Cointelegraph the move reflects lessons from past market failures, including the FTX collapse and the $1.4 billion Bybit hack, which exposed risks tied to unsegregated or compromised exchange-held funds.

“Cases like the FTX collapse and the Bybit hack are examples of how custody failures or security threats can put client funds at risk,” Lutz said.

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Trading without prefunding the exchange

Under the integration, institutional and professional BitMEX clients can trade derivatives without transferring assets directly onto the exchange. Instead, collateral remains in Zodia’s segregated vault and is mirrored for trading execution.

This structure allows traders to maintain control of assets while accessing BitMEX’s derivatives, including perpetual swaps and futures. It also supports cross-collateral usage of Bitcoin (BTC), Ether (ETH), Tether USDt (USDT) and USDC (USDC).

Source: BitMEX

This setup is designed to improve capital efficiency for traders by removing the need to move assets between custody and exchange accounts. It also reduces operational risk tied to pre-funding workflows, which are common in traditional crypto trading models.

Custody is a core part of traditional finance markets

Zodia Custody, which launched in 2021 and is backed by Standard Chartered, is an institutional digital asset custody provider operating globally. The platform secured a Markets in Crypto-Assets Regulation (MiCA) authorization in Luxembourg in late 2025, enabling regulated services across the European Union.

BitMEX CEO noted that custody has long been a core element of traditional finance, becoming even more critical following collapses like FTX and security incidents like the Bybit hack.

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Related: Zonda exchange says 4.5K BTC wallet inaccessible amid withdrawal crisis

“Custody is a core part of traditional finance markets, and recent cases like FTX and Bybit are clear examples of why it’s even more important in crypto,” Lutz said.

“As the industry matures, institutions are trading digital assets like any other asset — and should have access to the same services as they do in traditional markets,” he added.

Additional reporting by Felix Ng.

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