Crypto World
TON’s Catchain 2.0 Delivers Sub-Second Finality, Shortening Latency
The Open Network (TON), the independent layer-1 blockchain closely integrated with Telegram, has rolled out Catchain 2.0, dramatically shortening block times to 400 milliseconds. The upgrade is designed to push settlement speeds toward real-time for both payments and trades, while enabling decentralized applications to run with performance closer to traditional apps.
According to TON’s announcement, payment transactions now settle in about one second, and trades settle in near real time. The upgrade strengthens TON’s position as a platform aiming to blend messaging with on-chain functionality, a path already underscored by its ongoing Telegram integration. The update comes alongside an inflationary shift in TON’s token economics: annual inflation is projected to rise six-fold, to roughly 3.6% from about 0.6%, driven by the increased rate of block production.
“More blocks mean more validator rewards, which create stronger staking incentives and bring more TON into the network,” TON stated in its release. The Catchain 2.0 upgrade builds on TON’s Catchain consensus architecture, a BFT-style algorithm first proposed in 2020, and brings near-instant settlement to a network already embedded in an app ecosystem with approximately 1 billion users globally.
Market data captures a snapshot of how the upgrade is being received. TON was trading up about 2.3% to roughly $1.28 on Thursday, with volume around $130 million and a market capitalization near $3.17 billion, according to CoinMarketCap. Observers noted a surge in activity on TON’s network following the upgrade, including spikes in transactions per second tracked by TON Explorer, underscoring the immediate demand for faster settlement and more responsive smart-contract activity.
The announcement frames Catchain 2.0 as a natural evolution of TON’s thrust to merge everyday communications with on-chain finance, a vision that has been reinforced by Telegram’s growing crypto toolkit. In February, Telegram added self-custodial vaults to its in-app wallet, enabling users to earn yield on Bitcoin, USDT and ETH. Earlier this month, the wallet extended into perpetual futures trading, launching a new feature set in collaboration with the perpetual DEX Lighter. The integration enables TON-based payments and on-chain interactions directly within Telegram’s user interface, broadening the potential scale of user adoption and on-chain activity.
Key takeaways
- Block time slashed to 400 milliseconds. Catchain 2.0 delivers substantially faster block finality, aiming to improve throughput and responsiveness for both financial transactions and developer applications.
- Settlement accelerates to near real-time. Payments settle in about one second; trades settle in real time, enabling a smoother user experience for rapid on-chain exchanges.
- Inflation expected to rise to 3.6%. The increase from roughly 0.6% reflects higher block production and the ongoing minting/burning dynamics within TON’s ecosystem.
- Stronger staking incentives. More blocks translate into more validator rewards, reinforcing incentives to run validators and participate in securing the network.
Catchain 2.0: what changes and why it matters
At the core of the upgrade is TON’s Catchain consensus algorithm, a mechanism designed to achieve Byzantine fault tolerance while maintaining speed and finality. By accelerating block production, Catchain 2.0 effectively raises throughput across the network, which has several practical implications for users and developers. First, faster blocks reduce the latency between submitting a transaction and its confirmation, a critical factor for payment rails and decentralized finance (DeFi) applications that rely on quick settlement to minimize front-running and slippage. Second, the higher block rate inflates the expected rewards for validators, potentially strengthening the security of the network through deeper staking participation and a larger base of committed validators.
The inflationary shift, while potentially dilutive in the short term, is positioned by TON as a byproduct of increased activity and network security. The organization argues that the higher issuance supports a more robust staking economy, which can, in turn, bolster long-run network reliability and validator health as adoption grows. Investors and builders should weigh the inflationary impact against the benefits of faster settlement and a more responsive ecosystem, particularly as TON deepens its ties with Telegram’s user base and integrated financial features.
Telegram: turning messaging into a multi-asset financial channel
The upgrade arrives amid a broader narrative: TON’s alignment with Telegram is not merely cosmetic. The Telegram integration is positioned to enable users to send TON-enabled crypto payments within chats, bridging everyday communication and on-chain activity. The platform’s wallet features have evolved to offer in-app yield opportunities across major assets, including BTC, USDT, and ETH, and the ecosystem already supports perpetual futures trading through Lighter within the Telegram app. This progression points to a broader strategy of embedding crypto functionality into a widely used messaging interface, lowering the friction for mainstream users to engage with digital assets and on-chain commerce.
Pavel Durov, co-founder of Telegram, has highlighted how real-world restrictions and VPN workarounds in certain jurisdictions—such as Iran and Russia—have driven users to seek more resilient, open channels for communication. The TON-Telegram integration exemplifies a complementary model: users can exchange value alongside messages, with the possibility of automated payments and more sophisticated DeFi interactions embedded into the chat experience. For builders, this signals a shift toward app-layer ecosystems where identity, messaging, and asset transfer are increasingly interwoven.
Market response and next steps for TON
From a market perspective, TON’s price and on-chain activity suggest cautious enthusiasm for Catchain 2.0. The token’s modest near-term gain aligns with a broader pattern of traders evaluating how faster settlement and higher block production could influence user uptake, validator participation, and overall network throughput. The surge in on-chain activity reported by TON Explorer after the upgrade offers a tangible signal that developers and users are experimenting with new throughput capabilities and real-time interactions across the TON ecosystem.
Beyond immediate price moves, the key questions for investors and developers center on the durability of the new throughput gains, the sustainability of the higher inflation regime, and the extent to which Telegram’s in-app crypto features catalyze meaningful, recurring usage. Will higher staking rewards translate into deeper validator participation, and how will that impact network security and governance over time? How quickly will the on-chain experiences inside Telegram translate into real-world transaction volumes, merchant integrations, or consumer wallets?
Analysts will also be watching how Catchain 2.0 scales with continued ecosystem support. The near-term trajectory will depend on the balance between attracting new users through Telegram’s reach and maintaining robust validator participation to preserve the benefits of faster finality. In the meantime, developers can start leveraging the improved throughput to experiment with more sophisticated DeFi primitives, cross-chain liquidity, and real-time settlement use cases that were previously limited by latency.
What remains uncertain and what to watch next
While the upgrade delivers clear technical and user-facing benefits, several uncertainties deserve attention. The sustainability of the 3.6% inflation target hinges on adoption rates and the ongoing cycle of block production. The pace at which Telegram-integrated features translate into measurable user engagement and on-chain value remains to be seen, as does how regulatory developments may shape in-app crypto features and wallet services. Market participants will want to monitor validator health, network security metrics, and any changes in staking participation as Catchain 2.0 matures.
In sum, TON’s Catchain 2.0 represents a meaningful step toward faster, more interactive on-chain experiences embedded in a widely used messaging platform. For traders and developers, it signals a broader opportunity: a more responsive, scalable environment for payments, DeFi, and user-centric apps that live at the intersection of daily communication and digital assets. As TON continues to evolve its ecosystem—balancing security, inflation dynamics, and user adoption—the coming quarters will reveal how deeply this integration can redefine mainstream crypto usage.
Readers should watch for updates on validator participation, new application experiments on TON’s mainnet, and any material shifts in on-chain activity as Telegram-enabled features gain traction in real-world usage.
Shares of stablecoin issuer Circle Internet Group fell sharply Thursday following a Wall Street downgrade and reports tied to a legal probe connected to a recent crypto exploit.
Circle’s stock price closed near session lows in Nasdaq trading, falling 9.9% to $85.10.
The decline adds to a broader slide in the company’s shares, which are down nearly 24% over the past month and about 43% over the past six months, reflecting continued volatility after Circle’s high-profile public debut last year.
However, the latest pullback may also reflect profit-taking after Circle shares surged between February and March, driven largely by growing stablecoin adoption.
Nevertheless, some analysts are urging caution. On Thursday, Compass Point downgraded Circle to “sell” from “neutral” and issued a $77 price target, implying roughly 9% downside from current levels.
Circle has also faced pressure from regulatory uncertainty in the United States. Progress on market structure legislation has stalled, while banking industry groups continue to lobby against yield-bearing stablecoins.
Analysts at Bernstein said the concerns are overstated, noting that Circle’s underlying business remains unaffected and pointing to growing USDC (USDC) adoption and strong reserve income.
Related: Crypto investor sentiment will rise once CLARITY Act is passed: Bessent
Fallout from Drift Protocol exploit continues to weigh on crypto markets
Separately, legal scrutiny tied to the recent exploit of decentralized exchange Drift Protocol has added another layer of uncertainty to the broader crypto market, indirectly weighing on sentiment toward Circle.
According to a notice circulated this week, investors affected by the $280 million Drift exploit are being urged to contact the Oakland, California law firm Gibbs Mura for potential financial recovery. The outreach signals the early stages of a possible class-action investigation tied to losses from the incident.
While Circle is not directly implicated in the exploit, the episode has renewed concerns about counterparty risk and the stability of decentralized finance platforms — an overhang that can spill over into publicly traded crypto-linked equities.
The perpetrator of the Drift exploit moved the stolen assets into USDC, prompting speculation over whether the funds could have been frozen by Circle, though no action was taken.
Related: Crypto hacks fall to $49M in February as attackers shift to phishing scams
CAEX, a crypto platform linked to the Vietnam Prosperity Joint Stock Commercial Bank (VPBank) ecosystem, said OKX Ventures and HashKey are backing the company as it seeks to qualify for Vietnam’s pilot regime for crypto exchanges.
CAEX said Friday that the two offshore companies will join VPBank Securities (VPBankS) and technology partner LynkiD as shareholders.
According to a release shared with Cointelegraph, their investment is intended to help CAEX reach Vietnam’s minimum charter capital threshold of 10 trillion dong (about $380 million), a key condition for participating in the pilot program.
Vietnam pilot sets high bar
The move comes as Vietnam’s Ministry of Finance and State Securities Commission press ahead with a five-year crypto pilot that will admit only a limited number of licensed digital asset service providers. Officials have said no more than five enterprises will be allowed to operate exchanges under the pilot, which opened its licensing window on Jan. 20.
The framework also caps foreign ownership at 49% and requires at least 65% of capital to be held by institutional shareholders, creating high barriers to entry even for bank-backed contenders.
Authorities have also signaled they may block access to unlicensed overseas platforms once the first onshore exchanges are operational, raising the stakes for foreign firms seeking a compliant route into the market.
A spokesperson for OKX told Cointelegraph they could not disclose the size of the investment or the companies’ stakes in CAEX, nor whether the investment confirms the exchange’s selection in the pilot, saying it would “not be appropriate to comment further on the regulatory process.” However, they said the investment would enable CAEX to meet the capital requirements to pursue entry into Vietnam’s regulated crypto pilot program.
CAEX is part of VPBank’s broader financial ecosystem and previously said it was in the final stages of raising its charter capital to 10 trillion dong to qualify for the pilot, while VPBank is one of Vietnam’s largest private lenders.
The OKX spokesperson said that, as a strategic partner, the company would work with the other shareholders “as appropriate” to ensure CAEX has “the financial strength and technical know-how” to meet user expectations and regulatory standards. Potential areas of collaboration include technical infrastructure, security systems, compliance and risk management, they said.
Related: Banks want to run Vietnam’s crypto exchanges, Boyaa’s $70M BTC plan: Asia Express
Vietnam’s crypto market has boomed, but regulation is tightening
Vietnam’s crypto market has boomed in recent years, with Chainalysis ranking the country fourth in global crypto adoption in 2025. However, that growth has been marred by several high-profile scams and fraud investigations, giving regulators additional impetus to tighten control.
In March 2026, Vietnamese authorities detained multiple ONUS-linked suspects after alleging they used false promotions and manipulated token trading to misappropriate billions of dollars of investor funds through the crypto platform.
The spokesperson said Vietnam is an important market for digital asset innovation, and that the “development of a regulated framework” is a “constructive step” for the country’s industry.
Big Questions: Is China hoarding gold so yuan becomes global reserve instead of USD?
TLDR
- Changpeng Zhao says U.S. crypto exchanges spent millions to block his pardon.
- Zhao made the claim in his memoir, which runs more than 300 pages.
- He also criticized reporting from The Wall Street Journal and Bloomberg.
- Politico reported that Binance paid lobbying firms to support Zhao’s pardon effort.
- Binance.US recently named Stephen Gregory as chief executive to expand in the U.S. market.
Changpeng Zhao says several U.S. crypto exchanges funded efforts to stop his presidential pardon, according to his memoir. He wrote that rivals feared Binance could return to the U.S. market after his legal case ended. Trump granted Zhao a pardon last October, after Zhao pleaded guilty in 2023 and left Binance’s top role.
Changpeng Zhao Details Pardon Fight in His Memoir
Zhao wrote that friends told him rival exchanges backed lobbying campaigns against his pardon. He said they feared stronger competition if Binance re-entered the United States.
He wrote, “They paid millions in lobbying fees to block the pardon, in fear of business competition.” He also said those efforts clashed with Trump’s push to make “America the crypto capital.”
Zhao also attacked media coverage tied to his legal case and pardon process. He called Wall Street Journal reports “false news” and Bloomberg stories “smear articles.”
In 2023, Zhao pleaded guilty to failing to maintain adequate anti-money-laundering controls at Binance. He also stepped down as chief executive after the plea.
Zhao wrote that prison time surprised him because earlier enforcement cases often ended with deferred prosecution or home confinement. He did not identify the exchanges that allegedly opposed the pardon.
Lobbying Records and Binance.US Plans
Politico reported that Binance spent hundreds of thousands of dollars while seeking Zhao’s pardon. The report said one firm received $450,000 for one month of work.
Politico described that firm as run by “a hunting buddy of Donald Trump Jr.” Binance used outside lobbyists while Zhao pursued clemency.
Zhao’s memoir also includes endorsements from BlackRock chief executive Larry Fink and Bridgewater founder Ray Dalio. Dalio praised Zhao for helping expand access to alternative forms of money.
He wrote, “As a great admirer of CZ for his contributions to making alternative monies accessible.” The memoir presents those testimonials alongside Zhao’s account of legal and political pressure.
Last month, Binance.US hired former Currency.com chief executive Stephen Gregory to lead the exchange. The company has said it wants a larger share of the U.S. market, where Coinbase leads.
That appointment came about one year after Binance.US restored fiat deposits and withdrawals for U.S. customers. The company had paused those services due to regulatory pressure.
Key Highlights
- Analysts believe that further decline in XRP’s price will result in its breakout.
- Market specialists are hesitant, attributing weak ETF flows and uncertain signs for its recovery.
- The price movements of XRP largely depend on Bitcoin’s performance.
Mixed Sentiment for XRP as the Market Bounces Back
There is evident optimism in the crypto market since Bitcoin managed to climb above the $70,000 mark, which boosted other coins’ prices.
Ethereum also demonstrated its growing value, thus raising hopes for a potential milestone. Yet, despite this positive outlook in the market, there remains controversy over the future prospects for XRP.
Indeed, while some cryptocurrencies have managed to demonstrate their recovery capabilities, XRP does not seem to be on a consistent rising trajectory just yet. The coin is being traded in a narrow range without any definite upward dynamics.
Analyst: Price Decline May Mean a Greater Breakout
In light of the volatility surrounding XRP, an analyst has provided his own contrarian opinion, saying that any price fall in XRP may increase the possibility of a great breakout in the long run. This is due to the fact that an extended drop means a bigger accumulation period, which would result in an even greater rise after resistance is breached.
Technical analysis dictates that any extended period of sideways trading or falling prices eventually leads to a strong breakout, with the downside providing greater gains than a breakout on the upside. Hence, the analyst suggests that the longer the period of decline, the more gains one would reap from such a breakout.
The analyst adds that should XRP break out at its current price levels, the upside gains may be relatively smaller in comparison to a breakout after an extended price decline period.
Experts Still Question the Potential for XRP Recovery
While this optimistic perspective holds true, some notable experts are still skeptical concerning the future success of XRP in recovering itself. Ric Edelman, financial advisor, recently revealed his skepticism toward XRP by saying that he does not believe XRP will achieve its past heights once again.
Furthermore, Edelman referred to the rather low levels of capital flowing into XRP-based exchange-traded funds, indicating that institutional investors have not shown much enthusiasm about the cryptocurrency. The absence of substantial investment indicates that any potential price rally is difficult to sustain.
Another ETF expert, Eric Balchunas, also suggested that XRP is directly dependent on the performance of Bitcoin. Although Balchunas predicted a price increase, he implied that more positive news is needed to ensure a noticeable price change, including regulatory support or wider acceptance around the world.
Will XRP Be Able to Break Out and Create a New ATH
The main concern for the investors will be the ability of XRP to break out of its consolidation stage and establish a new all-time high in this market cycle. Despite the positive patterns on the charts, the absence of any solid catalysts has restrained expectations.
For XRP to break out, multiple factors have to work in favor of the crypto asset. Stable performance by both Bitcoin and Ethereum might provide the necessary environment for XRP to rise, along with increased adoption and institutional presence. Developments related to regulations could be another significant driver for XRP in the future.
Meanwhile, XRP traders continue monitoring important support and resistance zones for signals about a breakout direction. Either way, XRP is expected to see more volatility in the near term.
The future of XRP is still uncertain but optimistic and skeptical at the same time. Some experts argue that a more substantial decline in price would create room for a robust breakout; however, some doubt if the coin can reassert its dominance amid heightened competition.
As the overall cryptocurrency market seems to be recovering, the next action for XRP may well depend on technical and non-technical factors alike. For the time being, traders and investors keep monitoring the coin’s progress, weighing the opportunities and risks involved.
$XRP – the lower we go, the higher the measured breakout will be! If we break out now, price target will be lower!
Regardless, Im ready to take more profits to retire whole family bloodline!
RT for updates! Make sure to take more profits on top of the #XRPArmy #XRPCommunity 🫡 pic.twitter.com/lHfQV8YByR
— JD 🇵🇭 (@jaydee_757) April 8, 2026
Solana (SOL) price trades at $82.20 on April 9, down 3% in 24 hours and 34% year-to-date. Yet leveraged traders are betting heavily on a bounce.
The seven-day liquidation map on Bybit shows $309 million in cumulative long leverage against just $127 million in shorts, a 2.4x mismatch that defies the price weakness. A bullish reversal pattern on the 12-hour chart and an on-chain supply wall may explain why the crowd refuses to turn bearish on Solana price despite the sustained bleed.
Price Weakness Meets a 2.4x Long Bias as a Reversal Pattern Takes Shape
Solana price has dropped almost 5% over the past 30 days while the broader market digested ceasefire uncertainty and capital rotation into equities. The 34% year-to-date decline makes SOL one of the weaker performers among top tokens.
The leverage picture tells a completely different story. On Bybit’s SOL/USDT perpetual market, cumulative long liquidation leverage stands at $308.79 million. Short liquidation leverage sits at $127.02 million. Longs outweigh shorts by roughly 2.4 to 1.
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The mismatch becomes less puzzling when the 12-hour chart is considered. SOL is forming an inverse head and shoulders, a bullish reversal pattern. The right shoulder is currently taking shape, and the price is sitting near its base. As long as the pattern remains valid (SOL stays above $76.63), the leveraged crowd appears to be betting that the current dip is the final leg of the right shoulder before a breakout.
However, a pattern alone does not justify $309 million in directional bets. The on-chain picture reveals where that conviction is coming from.
17.5 Million SOL Accumulated at the Exact Level Where the Right Shoulder Sits
The cost basis distribution heatmap from Glassnode shows the densest supply cluster sitting between $81.16 and $81.98. Approximately 17.47 million SOL has been accumulated at this range, making it the strongest holder concentration zone on the chart.
The right shoulder’s lowest wick sits at $81.67, directly inside this cluster. The alignment is not a coincidence. Traders and holders who bought between $81.16 and $81.98 are defending their cost basis. Every dip into this zone gets absorbed because selling here would mean realizing losses for a large portion of the supply.
This on-chain wall gives the inverse head and shoulders its structural credibility. The pattern is holding because a real supply base supports it, not just speculative leverage. The longs on Bybit appear to be reading the same signal and positioning accordingly.
However, a $175 million long liquidation cluster sits around $78. If the cost basis wall fails and Solana price drops through $78, the resulting cascade could wipe out the bullish thesis rather quickly.
The SOL price levels now determine which outcome plays out.
Solana Price Levels That Decide if the Longs Are Right
SOL trades at $82.20. The first hurdle sits at $84.12 at the 0.236 Fibonacci level. A 12-hour close above $84.12 would suggest the right shoulder was completed earlier and buyers are now pushing toward the neckline.
The neckline zone sits between $86.86 at the 0.5 level and $88.09 at the 0.618 level. A daily close above $88.09 would confirm the breakout and activate the 13.2% measured move projection from the neckline. That targets $98.47-$98.80, per target projection.
On the downside, $81.67 is the right shoulder floor and almost the base of the 17.5 million SOL supply wall. A 12-hour close below $81.67 would deepen the right shoulder and raise questions about the pattern’s validity.
Below that, $78.38 offers the next technical support. However, the $78 zone is where roughly $175 million in long liquidations are clustered. If SOL reaches that level, forced selling from liquidated positions would likely accelerate the decline and damage the pattern significantly. A break below $76.63 at the head invalidates the inverse head and shoulders entirely.
For now, $88.09 separates a confirmed breakout toward $98.80 from a failed right shoulder that risks triggering $175 million in long liquidations below $78.
The post Solana Price Drops 3% but Longs Keep Piling In: 17 Million SOL Explain Why appeared first on BeInCrypto.
A mechanical hand is on display at the Robot Mall, world’s first embodied intelligent robot 4S store, on August 13, 2025 in Beijing, China.
Vcg | Visual China Group | Getty Images
BEIJING — Alibaba Cloud is investing in a new type of artificial intelligence designed to better replicate the real world using a different approach from chatbots such as OpenAI’s ChatGPT.
The shift recognizes the limits of “large language models” trained primarily on text. Instead, developers are starting to focus more on “world models” built on videos and real-life physical scenarios.
To jump on the trend, Alibaba led a 2 billion yuan ($290 million) investment in ShengShu, the startup behind the AI video generation tool Vidu, the company announced Friday. TAL Education and Baidu Ventures also participated in the series B funding round.
The investment comes about two months after ShengShu raised 600 million yuan from Qiming Venture Partners and other backers. The startup declined to disclose its valuation.
ShengShu said the latest funding will support the development of a “general world model” that uses AI to bridge two currently separate domains: the digital world of games and AI-generated video, and the physical world of autonomous driving and robots.
“ShengShu believes that a general world model, built on multimodal data such as vision, audio, and touch, more naturally captures how the physical world works than large language models,” the three-year-old startup said in a statement.
“We aim to connect perception and action,” Zhu Jun, founder of ShengShu, added in a statement, allowing AI systems to better model and predict real-world behavior consistently.
ShengShu’s latest Vidu Q3 Pro model, released in January, ranks among the top 10 AI models for generating videos from text and images, according to Artificial Analysis.
The company launched Vidu globally months before OpenAI made its now-shuttered Sora tool for AI video generation widely available. Chinese short-video companies Kuaishou and ByteDance have also released similar competing AI tools for generating videos.
World model competition
Alibaba has expanded its investments in related startups.
The Chinese tech giant and Baidu Ventures last month led a $50 million investment in Tripo AI, a platform that uses AI to quickly generate digital 3D models from photographs. Tripo said it is also moving away from techniques used by language models toward AI tools grounded in physical space and is developing its own world model.
In September, Alibaba also led a $60 million investment in PixVerse, which released an AI world model earlier this year that allows users to direct how a video unfolds while it is being generated.
Alibaba, which got its start in e-commerce, has also released free, open-source AI models for video generation and, in February, launched one for powering robots.
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Shengshu said Friday it has strategic partnerships with companies developing embodied AI — systems such as humanoid robots that interact with the physical world — for use across industrial, commercial and home settings.
World models are critical for robotics because the technology needs more than LLMs to work, Kevin Kelly, co-founder of the U.S. tech magazine Wired, wrote last month on his Substack.
Ultimately, to replicate human intelligence, AI will need three things: reasoning, an understanding of the physical world and continuous learning, Kelly said. While AI for the learning category hasn’t been developed yet, LLM-powered chatbots have created the knowledge element, he said, making world models a key area requiring a breakthrough.
Mythos’ AI scare is real — enough for U.S. regulators to call an urgent meeting and assess what Anthropic’s advanced artificial intelligence model it could mean for banks.
The meeting happened Tuesday, with Treasury Secretary Scott Bessent and Fed Chair Jerome Powell sitting down with Wall Street bank CEOs to discuss possible cybersecurity risks linked to Mythos, people familiar with the matter told Bloomberg.
Participants included chief executives from Citigroup Inc, Morgan Stanley, Bank of America Corp.’, Wells Fargo & Co.’s, and Goldman Sachs Group Inc.’s. All these are designated as systemically important, meaning disruptions to their operations could have global repercussions.
Mythos, an advanced artificial intelligence model developed by Anthropic, is designed to identify and exploit vulnerabilities in software systems when prompted. Unlike typical consumer-facing AI tools, Mythos is geared toward cybersecurity software engineering and cybersecurity tasks. Its specialty is identifying critical software vulnerabilities and bugs, but it can also assemble sophisticated exploits.
The episode highlights a fundamental change in how regulators are framing AI risk, not merely as a technological challenge, but as a potential catalyst for systemic events.
This has already raised red flags in crypto, where experts are worried that Mythos’ capability of discovering and exploiting zero-day vulnerabilities in real-time at a low cost poses risk to the DeFi infrastructure.
Anthropic, therefore, has taken a cautious approach, releasing the product only for small group of large technology and financial firms under “Project Glasswing.”
Anthropic has previously disclosed that it consulted with U.S. officials ahead of Mythos’ release regarding both its defensive and offensive cyber capabilities. The company is also separately engaged in a legal dispute with the Pentagon, which has designated it a supply-chain risk — a classification Anthropic is contesting in court.
The US Central Intelligence Agency said it will embed “AI co-workers” directly into its analytics platforms to assist analysts with detecting spies and anticipating hostile moves by foreign adversaries.
“Within the next couple of years, we will have AI co-workers built into all of the agency’s analytic platforms — a kind of classified version of generative AI that will help our analysts with basic tasks,” CIA deputy director Michael Ellis reportedly said on Thursday during an event hosted by the Special Competitive Studies Project in Washington, DC.
According to Politico, Ellis said the AI co-workers would assist intelligence officers with drafting key judgments, testing analytical conclusions and identifying trends in intelligence that the agency gathers from abroad.
However, he said humans would continue to be the ones making the “key decisions.”
The CIA’s AI plans come amid a feud between the US Department of Defense and AI firm Anthropic. Despite having a $200 million contract with the Department of Defense, Anthropic prevented the use of its flagship AI product, Claude, for mass domestic surveillance and fully autonomous weapons.
US President Donald Trump ordered all federal agencies to immediately cease using Anthropic’s technology in March, while the Department of Defense declared Anthropic a supply chain risk.
The parties remain locked in a legal dispute over the designation, with a US appeals court on Wednesday denying Anthropic’s emergency request to temporarily pause the label.
While Ellis didn’t point out Anthropic, he said the CIA “cannot allow the whims of a single company” to constrain its capabilities.
The CIA has already adopted AI for other intelligence tasks, having tested about 300 AI projects last year to “bring new capabilities to our mission,” such as processing large data sets and language translation, Ellis said.
Ellis also noted that the CIA recently created its first intelligence report with AI while predicting that AI’s role in the agency’s work would continue to grow.
Related: North Korean cyber spies are no longer just remote threats
A major motivation for the CIA is to stay ahead of China, Ellis said, noting that the once-large gap between the US and China has narrowed significantly.
“Five to ten years ago, China was nowhere near America, in terms of technological innovation,” Ellis said. “That’s just not true today.”
Ellis likes the transparency of Bitcoin, crypto
In May, Ellis said Bitcoin and crypto were matters of national security, adding that the agency looks at blockchain data to assist with its counterintelligence operations.
“It’s another area of technological competition where we need to make sure the United States is well positioned against China and other adversaries.”
Magazine: ‘Dystopian death market’: Anger over Polymarket’s Iran war be
Morgan Stanley launches lowest-fee bitcoin ETF, intensifying market rivalry. Advisor network gives MSBT strong distribution edge over competitors. BlackRock retains liquidity lead despite new fee pressure from MSBT.
Wall Street competition intensified as Morgan Stanley launched its spot bitcoin ETF on April 8. The new product targets dominance in a fast-growing U.S. market. It directly challenges BlackRock and its leading fund.
The fund trades under the ticker MSBT on NYSE Arca with a 0.14% expense ratio. This pricing sets a new low across spot bitcoin ETFs. It signals a clear shift toward aggressive fee competition among issuers.
Bitcoin ETF Competition Shifts Toward Cost and Access
Bitcoin traded around recent market levels as ETF competition intensified across major issuers. MSBT entered the market with the lowest fee structure available. This move puts pressure on established players to reconsider pricing strategies.
BlackRock Continues to Dominate Through Its iShares Bitcoin Trust
The fund holds tens of billions in assets and leads in trading activity. Its liquidity supports large transactions and active strategies.
Morgan Stanley offers a different advantage through distribution strength. Its wealth division manages trillions in client assets. Advisors can now allocate capital directly into an in-house product.
Advisor Networks Drive Structural Market Shift
Financial advisors now play a larger role in ETF adoption and portfolio allocation. Earlier inflows came mainly from self-directed participants seeking liquidity. Now, integrated advisory platforms influence new capital flows more strongly.
Morgan Stanley allows advisors to allocate a portion of portfolios to bitcoin exposure. Internal guidance permits allocations based on client risk tolerance. This approach simplifies recommendations and reduces friction.
As a result, MSBT may attract flows through existing advisory relationships. BlackRock maintains an advantage in market depth. Replicating that liquidity may take time despite strong distribution channels.
Expansion Signals Broader Crypto Strategy
The MSBT launch marks a shift in how banks approach digital assets. Morgan Stanley now builds its own crypto investment vehicles, whereas previously it focused on distributing third-party ETF products.
The bank has also filed for additional crypto products linked to Ethereum and Solana. These filings suggest a long-term expansion strategy across digital asset classes. The firm continues to build infrastructure around custody and trading services.
The bank plans to integrate crypto trading into its E*Trade platform, connecting digital assets with its broader financial ecosystem. It reflects a wider trend among banks entering crypto markets directly.
The ETF market has already absorbed significant inflows since early 2024. MSBT now tests whether distribution strength can compete with established liquidity leaders. This competition may accelerate fee reductions across the sector.
The Strait of Hormuz, a critical route for roughly 20% of global oil flows, is now at the center of a broader debate that goes beyond geopolitics. It has pulled Bitcoin and XRP into a real-world test of how crypto functions during conflict.
Amid a fragile ceasefire in April, reports claim Iran is demanding a toll of about $1 per barrel from tankers crossing the strait. Payments are reportedly requested in Bitcoin or yuan, adding a new layer to how sanctions and trade routes intersect.
Bitcoin Enters the World’s Most Strategic Oil Route
Bitcoin has quickly become the focal point of this narrative. According to the reports, the IRGC enforces these payments with a very short time window, making tracking difficult under Western sanctions.
For a supertanker, this could mean fees reaching up to $2 million, or roughly 281 BTC.
Still, skepticism remains. Arthur Hayes publicly questioned the claims, saying he would only believe them after seeing a verifiable on-chain transaction tied to a vessel.
Until then, he suggested it could be noise or messaging rather than reality.
So far, no public on-chain evidence confirms these payments. Even so, the narrative alone pushed Bitcoin back above $70,000.
The episode reinforces a growing view. In moments of crisis, Bitcoin acts as a neutral settlement tool that operates outside traditional financial systems.
XRP’s Case: Built for Peace, Not Crisis
At the same time, the situation has triggered debate within the XRP community. Analyst Fran de Olza argued that Bitcoin’s narrative is shifting again.
In his view, it has moved from retail payments to a store of value, and now toward large-scale settlement use cases, like those implied in Hormuz.
He pointed out that terms like “neutral settlement” and “borderless money” are now widely used, even by Bitcoin advocates.
However, he argues that XRP already occupies this space, with years of development focused on institutional payments and cross-border settlement.
De Olza suggested that if a new global financial agreement emerges, similar to a modern Bretton Woods system, many could realize they were describing XRP’s role while assuming Bitcoin would fill it.
However, other analysts offered a more grounded view. Bitcoin’s strength in this case comes from its censorship resistance.
Iran’s priority is not efficiency but bypassing systems like SWIFT and the US dollar immediately. That makes Bitcoin useful in a sovereignty-driven scenario.
XRP, by contrast, is built for regulated financial systems operating at scale during stable periods. It focuses on institutional settlement, compliance, and integration with banking infrastructure.
Bitcoin handles urgent, high-pressure scenarios, while XRP is designed to support long-term financial rails. Both can succeed without displacing each other.
The 2026 market is increasingly multichain, with Bitcoin serving as a reserve and crisis tool, while XRP targets institutional settlement.
For now, as tankers wait and analysts debate, one point stands out. Crypto is no longer just a speculative market. It is becoming part of how power, trade, and finance operate in a fragmented global system.
The post Hormuz and Bitcoin Link Means “Game Over” for XRP? This Is What Analysts Say appeared first on BeInCrypto.
THIS IS BAD FOR BITCOIN…
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