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Vitalik Buterin Proposes TX Simulations to Boost Crypto Security

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Crypto Breaking News

Vitalik Buterin, the co-founder of Ethereum, has floated a design concept that could reshape how users interact with wallets and smart contracts. In a Sunday post on X, he argued that security and user experience are not separate, but rather two sides of the same coin—both hinging on what users actually intend when they initiate on-chain actions. The gist is to build systems that help users verify their intent through on-chain simulations before an action is executed, potentially reducing mistakes and vulnerabilities in the process. The discussion also touched on practical guardrails, such as spending limits and multisignature thresholds, to ensure that actions align with a user’s risk appetite. The proposal is part of a broader effort to improve crypto UX without compromising the core principles of decentralization and permissionless access. X post.

Key takeaways

  • Buterin envisions an intent-based layer where users see a simulated, on-chain preview of consequences before confirming an action, tying user goals to blockchain outcomes.
  • The approach could extend beyond wallets and smart contracts to systems at the OS or hardware level, broadening the scope of intent verification.
  • Mechanisms such as spending limits and multisig approvals are proposed to ensure execution only occurs when intent, expected outcomes, and risk limits are aligned.
  • Buterin acknowledges that defining user intent is extremely complex, and there may never be a perfect security solution.
  • The goal is to make routine, low-risk interactions easier while making dangerous operations harder, guided by a user’s stated preferences and risk tolerance.

Tickers mentioned: $ETH

Sentiment: Neutral

Market context: The idea arrives as Ethereum’s ecosystem continues to pursue better UX and stronger on-chain security, while debates persist about the blockchain trilemma and how to balance security, decentralization, and scalability amid rapid wallet and dApp growth.

Why it matters

The core appeal of an intent-based security model is practical: it seeks to reduce user error and opportunistic exploits by ensuring that the action a user intends to take is what actually plays out on-chain. If implemented effectively, wallet providers could offer a dynamic preview of a transaction’s on-chain effects—akin to a sandboxed simulation—that helps users catch mistakes before they sign. This could lower the barrier for non-technical users to participate in DeFi and other on-chain activities without sacrificing safety.

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From a design perspective, the concept would demand a careful rethinking of user interfaces and risk signaling. Wallets and smart contract platforms would need to present clear, interpretable simulations that reflect real-world costs, slippage, and potential reverts. That implies a shift in how developers approach permission models, error handling, and fallback options. It also raises questions about standardizing risk metrics across diverse protocols, ensuring consistency across wallets, and maintaining trust when simulations align with complex, dynamic on-chain states.

Critically, the proposal acknowledges one of crypto’s enduring challenges: user intent is not a static, easily measurable target. The quoted line underscores this complexity: “It’s not because machines are flawed, or even because humans designing the machines are flawed, but because ‘the user’s intent’ is fundamentally an extremely complex object that the user themselves does not have easy access to.” Still, Buterin suggests a pragmatic path forward: the intent system could require overlapping specifications—so that actions proceed only when multiple independent signals converge with the user’s declared goals. This layered approach aims to prevent unintended consequences while avoiding excessive friction for legitimate, low-risk actions.

The broader framing ties into the blockchain trilemma—security, decentralization, and scalability. Buterin has long argued that these three are in tension, and solutions must trade one for another. In the Ethereum ecosystem, decentralization and scalability have garnered heightened focus in recent years as developers push layer-2s and architectural upgrades to relieve mainnet congestion. A robust, user-centric security enhancement could help mainstream adoption by reducing the likelihood of user error without centralizing control or compromising trust assumptions.

For researchers and practitioners, the concept invites practical experimentation. It is one thing to propose simulations in theory; it is another to integrate them into wallet UX, ensure privacy of intents, and defend against adversarial manipulation. The discussion also nods to hardware and operating-system considerations, suggesting that intent-aware security could become a cross-cutting pattern for broader devices beyond purely blockchain-native software. The path from idea to implementation would require collaboration among wallet vendors, security researchers, and standard-setting bodies to establish verifiable safety guarantees while preserving the open, permissionless ethos that underpins Ethereum.

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What to watch next

  • Public proposals or whitepapers from Ethereum researchers or wallet developers outlining concrete designs for on-chain intent simulations.
  • Pilot experiments or beta features in wallets that test simulated consequences and multi-signal intent checks in real user flows.
  • Discussions around risk models, privacy protections, and governance processes needed to validate intent-based security across different ecosystems.
  • Further commentary from Vitalik or Ethereum Foundation researchers that expand on the overlap between user intent, security guarantees, and UX considerations.

Sources & verification

  • Vitalik Buterin’s X post discussing intent-based security and on-chain simulations: https://x.com/VitalikButerin/status/2025653045414273438
  • Starknet taps EY Nightfall to bring institutional privacy to Ethereum rails: https://cointelegraph.com/news/starknet-taps-ey-nightfall-institutional-grade-privacy
  • Ethereum Foundation seal partner Stop Wallet Drainers: https://cointelegraph.com/news/ethereum-foundation-seal-partner-stop-wallet-drainers
  • Blockchain trilemma discussion and its framing around security, decentralization, and scalability: https://cointelegraph.com/news/blockchain-trilemma-solved-zkevms-and-peerdas-vitalik-buterin
  • Sacrificing Ethereum’s values for mainstream adoption must stop now: https://cointelegraph.com/news/sacrificing-ethereums-values-for-mainstream-adoption-must-stop-now-buterin

Intent-based security and on-chain simulations: what it could change

Ethereum (CRYPTO: ETH) has long stood at the center of a debate about how to balance safety with openness. Buterin’s latest stance argues that a system of simulated previews could help users see the chain of consequences before a transaction is broadcast. The idea aligns with a broader push in the ecosystem to reduce risky interactions—such as signing a contract that would drain funds or approve a high-velocity transfer—by making the path from action to outcome more transparent. The mechanism would likely rely on a combination of client-side simulations, server-assisted checks, and user-configurable risk controls that empower individuals to tailor their security posture without locking down their capabilities.

People familiar with the concept emphasize that any practical implementation would have to preserve the security guarantees that users expect from public blockchains. The simulations would need to be tamper-evident and auditable, with clear signals about potential edge cases, network fees, and the probability of execution under different conditions. Importantly, the model would have to respect user autonomy: it should not become a gatekeeper that blocks legitimate activities simply because a risk model flagged a worst-case scenario. The design goal remains to help users make informed decisions, not to override user intent with bureaucratic or opaque prompts.

As the ecosystem continues to evolve, the notion of intent-based security could influence wallet design, smart contract verification tooling, and even hardware-embedded protections. If the approach proves viable, it may contribute to a more intuitive onboarding experience for newcomers while providing a layered defense for seasoned users who routinely engage in high-stakes DeFi operations. The conversation is ongoing, and observers will be watching for concrete proposals, pilot deployments, and community feedback that help translate the concept into actionable features without compromising the decentralized, permissionless nature of Ethereum.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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The S&P 500 is officially coming to crypto with its first-ever 24/7 perpetual futures product

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The S&P 500 is officially coming to crypto with its first-ever 24/7 perpetual futures product

S&P Dow Jones Indices announced Wednesday that it is bringing the S&P 500 to the blockchain via the Hyperliquid platform, making it easier for investors to trade the most widely tracked equity index 24 hours a day.

The company said it licensed its flagship stock index to Trade[XYZ], which is launching the first officially approved S&P 500 perpetual contract on the Hyperliquid blockchain.

In simple terms, this means eligible non-U.S. investors can trade the S&P 500 onchain, around the clock, without using traditional stock exchanges.

Perpetual futures contracts, or “perps,” are derivative instruments without expiration dates that allow investors to place bets on an asset’s price without owning it, using funding rates, typically every few hours, to keep prices aligned with spot markets. Their infinite duration (perpetual futures contracts never expire, unlike traditional contracts), high-leverage options, and round-the-clock access have made them extremely popular in the crypto space and have generated billions in daily trading volume across exchanges.

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For the S&P 500, it is the first time it has been turned into a perpetual product with official backing from S&P. It also uses the firm’s real-time index data, bringing a more traditional finance standard into crypto trading. This guarantees the accuracy of index trading while the traditional market remains closed.

S&P says the goal is to expand where and how its indexes can be used. “This collaboration expands access” to its benchmarks in digital markets, said S&P’s Chief Product Officer Cameron Drinkwater.

24//7 trading

The move opens the door for non-U.S. investors to get leveraged exposure to the S&P 500 through a blockchain-based platform.

For example, if big macro news hits on the weekend, when the market is closed, traders traditionally need to speculate on how the S&P 500 will move on Monday, when the market opens. However, with these new perpetual contracts, traders can place bets immediately and with accuracy as soon as news breaks. Recently, crypto traders were able to trade oil futures on decentralized exchange Hyperliquid on a weekend, when the first missile hit Iran, while traditional oil markets remained closed.

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Trade[XYZ] runs on Hyperliquid, a decentralized network built for fast trading. The platform says its markets are always open, unlike stock exchanges that close after hours and on weekends. XYZ markets have exceeded $100 billion since October, with an annualized run rate of more than $600 billion.

The news seems to have helped HYPE, the native token of the Hyperliquid platform. The token is up 2.2% over the past 24 hours, 14.2% over the past 7 days, and 35.5% over the past month. Hyperliquid has recently become a crypto trader’s favorite platform for trading markets outside traditional finance.

Recently, Maelstrom CIO and BitMEX Co-Founder Arthur Hayes said traders are increasingly using Hyperliquid to access markets unavailable on traditional platforms, noting that the HYPE token could reach $150, citing the platform’s strong revenue, real trading activity, and disciplined token supply.

Trade[XYZ] said the S&P 500 is just the starting point as it looks to bring more traditional assets onchain. “The S&P 500 is a natural starting point. It represents the most widely tracked equity index on earth and has been the defining benchmark for global equities for decades,” said Collins Belton, chief operating officer and general counsel of Trade[XYZ]’s parent company.

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The announcement builds on S&P DJI’s prior decentralized finance initiatives, including its recent launch of the S&P Digital Markets 50 index, the company said.

Read more: 2026 Marks the Inflection Point for 24/7 Capital Markets

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Ethereum Foundation Deposits Another $7.5M in ETH From Its Treasury into Morpho

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Ethereum Foundation Deposits Another $7.5M in ETH From Its Treasury into Morpho

The move follows the EF’s first deployment into the DeFi lending protocol in October, and is part of its updated treasury policy.

The Ethereum Foundation has deposited another 3,400 ETH — worth roughly $7.5 million at today’s prices, near $2,220 — into DeFi lending protocol Morpho, with 1,000 ETH allocated specifically to Morpho Vaults V2, according to a X post from the EF today, March 18.

The move follows an initial deployment in October 2025, when the EF put 2,400 ETH (~$5.3 million) and approximately $6 million in stablecoins into the protocol — bringing the Foundation’s total Morpho commitment to just under $19 million to date.

According to the post, the DeFi deployments are a direct expression of the EF’s refreshed treasury policy, first unveiled in June 2025, which codified a new “Defipunk” framework to guide on-chain capital allocation.

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As The Defiant reported at the time, the policy signaled that DeFi was no longer a sideshow for the Foundation — it was putting its ETH where its mouth is, prioritizing permissionless, immutable, audited protocols aligned with cypherpunk values over passive ETH sales to cover operations.

The EF also elaborated on why it chose to deploy in Morpho, and in particular praised Morpho Vaults V2, which launched in September. The Foundation cited the product’s GPL-2.0 open-source license — a deliberate choice, it noted, that makes the codebase permanently able to be audited and forked.

Crucially, Vaults V2’s core contracts are immutable: no admin keys, no upgrade mechanisms, no emergency switches. “The true cypherpunk infrastructure doesn’t ask you to trust its builders, and it removes the need entirely,” the Foundation wrote in its X announcement.

According to DefiLlama, Morpho is currently the second-largest DeFi lending protocol behind Aave, with a total total value locked (TVL) of over $6.9 billion. The protocol has attracted significant institutional interest in recent months, including a deal for Apollo Global Management — which manages nearly $940 billion in assets — to acquire up to 9% of Morpho’s 1 billion total token supply over four years.

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The EF framed the Morpho allocation as a question of ecosystem direction:

“What kind of DeFi ecosystem is Ethereum aiming to support, and how should it weigh short-term performance against long-term resilience and openness? Choices like licensing and architecture may seem small, but they shape which of these paths remain viable over time.”

The treasury move comes amid a busy stretch for the Foundation. Just last week, the EF published its 38-page EF Mandate, which sparked debate in the community over whether the Foundation risks taking a backseat at a critical moment for institutional adoption.

In February the EF also pledged to deepen its support for privacy-first, permissionless DeFi, forming a dedicated internal unit to support builders adhering to those principles. The Morpho deposit suggests the commitment is more than rhetorical.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

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Views for next Fed rate cut pushed back after hot inflation report

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Views for next Fed rate cut pushed back after hot inflation report

Construction work continues at the Marriner S. Eccles Federal Reserve building in Washington, DC, on Dec. 30, 2025.

Brendan Smialowski | AFP | Getty Images

A hotter-than-expected wholesale inflation reading for February had traders contemplating the possibility that the Federal Reserve won’t be lowering interest rates at all this year.

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Following a Bureau of Labor Statistics report that the producer price index posted its biggest gain in a year, futures markets took any realistic chance of a cut off the table until at least December.

Even then, odds of a reduction at the final Fed meeting of the year fell to about 60% as persistently higher inflation — brought on by tariffs, the Iran war and elevated services costs — will keep the central bank on hold. The PPI report came just hours before the Federal Open Market Committee was to release its latest interest rate decision.

The wholesale inflation reading “likely reinforces a hold decision by the Federal Reserve later today but tilts the risk toward a more hawkish tone in today’s FOMC” statement, said Eugenio Aleman, chief economist at Raymond James. “Even if rates are left unchanged and we see multiple dissents, the messaging may lean toward ‘higher for longer,’ especially with energy inflation set to re-enter the picture in coming months.”

Prior to the war that began Feb. 28, traders had been looking for interest rate cuts in both June and September, with an outside possibility of one more in December as the Fed sought to balance its dual mandate of stable prices and low unemployment.

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But odds for a June cut have now slumped to just 18.4%, July is down to 31.5% and September to 43.6%, according to the CME’s FedWatch tool, which calculates probabilities using 30-day fed funds futures contracts.

Low conviction

Chances for a December reduction were at 60.5%, indicating that traders are leaning toward a cut, though with a relatively low level of conviction. Historically, the 60% level or above has been associated with Fed moves in either direction.

Futures are implying a 3.43% fed funds rate by the end of 2026, compared to the current level of 3.64%.

To be sure, trading in fed funds futures is volatile, and the Fed could be pushed back into an easing stance if the labor market weakens further. Fed Governors Stephen Miran and Christopher Waller have been advocating for immediate cuts, though the rest of the committee seems more inclined to hold rates where they are until the economic picture clears.

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Correction: The Iran war began Feb. 28. A previous version misstated the country’s name.

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SBI VC Trade Launches USDC Lending Service for Japan Users

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SBI VC Trade Launches USDC Lending Service for Japan Users

SBI Holdings’ digital asset arm, SBI VC Trade, said it will launch a USDC lending service in Japan on Thursday, allowing retail users to lend stablecoins to the platform under fixed-term agreements in exchange for returns.

On Wednesday, the company said users will be able to lend Circle’s USDC (USDC) stablecoin to the platform and receive interest payments, with a maximum application of 5,000 USDC per offering. The product is structured as a loan to SBI VC Trade rather than a deposit, meaning users take direct counterparty risk. SBI said it may also re-lend the borrowed USDC as part of its operations.

The launch marks a further step in Japan’s stablecoin rollout, bringing a consumer-accessible USDC yield product to market through a licensed domestic platform.

SBI said the product is intended as an alternative to traditional US dollar deposits in Japan, though, unlike bank deposits, segregation protections do not cover user assets and may not be fully recoverable in the event of insolvency. Users are also unable to withdraw or transfer funds during the fixed lending term, limiting their ability to respond to market conditions.

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Translated table comparing tax treatment of USDC lending and foreign currency deposits in Japan. Source: SBI VC Trade

SBI expands stablecoin footprint

The launch follows an initial announcement in November, when SBI VC Trade said it planned to launch a USDC lending product and was exploring exchange-traded fund (ETF) products, according to Reuters. 

The development comes as SBI has been expanding its stablecoin strategy. SBI VC Trade began a full-scale USDC launch in Japan on March 26, 2025, after receiving regulatory approval earlier that month. Circle said the approval made USDC the first approved global dollar stablecoin for use in Japan.

Related: SBI Holdings targets majority stake in Singapore crypto exchange Coinhako

On Aug. 22, SBI announced the establishment of a joint venture with Circle, aiming to promote the use of USDC in Japan and create new use cases for the stablecoin in digital finance. 

On Dec. 16, the company partnered with Startale to develop a regulated yen-denominated stablecoin aimed at tokenized assets and global settlement, with a planned launch in the second quarter of 2026.

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