Crypto World
Why Crypto Narratives Beat Fundamentals
“Investments change fast; human nature and human aspirations stay constant.”
That’s how Meir Statman, behavioral finance pioneer and professor of finance at Santa Clara University, explains one of investing’s oldest puzzles. And it may be why every crypto cycle so far has been about chasing the next hot narrative rather than fundamentals, whether its DeFi, meme coins or decentralized compute.
In an industry that has spent years maturing into an ecosystem of institutional investors, revenue-generating protocols and real-world use cases, investor attention still gravitates toward the next shiny thing that can offer the promise of outsized returns.
“Crypto is still a young asset class, and price discovery in young markets tends to be driven by attention before it’s driven by analysis,” Samar Sen, head of international markets at Talos, tells Magazine.
“A new narrative gives investors a simple story to underwrite quickly, while assessing the fundamentals of an established protocol takes real work, from understanding usage and revenue to token design and competitive position.”
This behavior isn’t unique to digital assets; it’s just particularly pronounced in an industry that prizes memes over sustainable business models.
A Pokémon card, a digital asset and a tech stock
A recent MarketWise study compared hypothetical $10,000 investments across cryptocurrencies, stocks, exchange-traded funds and collectibles between January 2021 and April 2026.
The study found that a sealed Pokémon card box outperformed Bitcoin, while a pair of limited-edition sneakers nearly matched Dogecoin’s returns.
At the same time, some of Wall Street’s most popular artificial intelligence funds lagged the broader stock market despite AI dominating the investment headlines.
A $10K investment has very different outcomes. Source: MarketWise
What does a Pokémon card, a digital asset and a tech stock have in common? According to Statman, they’re driven by the same thing: investors aren’t simply looking for the best asset; they’re buying a lottery ticket to a life-changing outcome.
Investors are chasing transformation, not crypto
Traditional finance tends to assume that investors want to maximize returns while minimizing risk, but Statman argues that people often invest for a very different reason.
In an unpublished paper shared with Magazine, Statman argues that many investors mentally divide their wealth into two layers.
The first is a “not-poor” layer, which is designed to preserve their standard of living and avoid falling into poverty. The second is a “be-rich” layer, which is for transformative goals, like buying a house, becoming financially independent, or fundamentally changing their circumstances.
Within that framework, concentrated investments aren’t necessarily irrational; they exist because diversified investing, while statistically sensible, may never offer someone with limited capital a realistic chance of achieving those goals.
James Royal, a senior writer at MarketWise, tells Magazine:
“The asset class may change, but the behavior barely does… Investors aren’t exactly loyal to crypto, stocks or collectibles. Their loyalty is to whatever promises lucrative returns next.”
Statman says that, while some of today’s investors pin their hopes on meme stocks, “a century ago it was railroad stocks […] today’s investors are simply expressing the same aspirations through a new asset class.”
Investors aren’t becoming more tolerant of risk, however, just more willing to accept volatility for a chance of life-changing wealth.
“Investors aren’t necessarily on the hunt for risk, but they’ve got a case of FOMO on the next life-changing return, and that can lead them down a path of underestimated downside risk,” Royal says.
Why stories beat fundamentals
If investors are searching for transformation rather than simple returns, that helps explain why narratives so often overwhelm fundamentals, particularly in crypto.
The decentralized finance sector is a case in point. Despite some of its largest protocols like Aave or Uniswap generating substantial revenue, attracting billions of dollars in deposits and processing enormous trading volumes, their tokens struggle to capture the same excitement as newer narratives built around the latest craze.
Aave’s token was trading at around $98 at the time of writing, some 85% from its 2021 peak, but its TVL is over $14 billion, and had reached over $37 billion at the height of the bull market in October 2025.
Aave’s TVL is over $14 billion while its token price is 85% from its 2021 peak. Source: DeFiLlama.
Thomas Probst, a research analyst at Kaiko market data provider, says that while assets may outperform in the short term, fundamentals will always be more important in the long term.
“Market fundamentals continue to play an important role, particularly resilience, liquidity, and volatility… [an asset’s] ability to establish itself over time also depends on the robustness of its market structure,” he says.
Yet, while a mature protocol generating sustainable cash flow may be an attractive long-term investment, it offers little appeal to investors allocating money toward their “be-rich” bucket. A token that might double over several years will always struggle to compete with the possibility, however remote, of a 100x moonshot.
“Investors like to confuse a great technological breakthrough with a great investment opportunity,” Royal says, which might explain why many AI-focused ETFs have underperformed, despite AI arguably becoming the defining investment narrative of our time.
“The real skill isn’t identifying exciting investments, it’s recognizing when optimism has already been priced in.”
That same skill comes in handy with market timing. MarketWise’s report found that investors who bought Bitcoin in January 2021 turned a hypothetical $10,000 investment into more than $24,000 by April 2026, with +141% gains.
Those who bought during its cycle peak in October 2025, however, saw the same investment shrink to just over $6,000 with a -38% return by April (and it’d be worth about $5,000 today).
Anyone who FOMO’d into AAAVE around the same time would be sitting on +85% losses today.
Institutions play a different game
Institutional investors approach investing from an entirely different perspective, Sen says:
“Institutional mandates simply don’t allow for chasing outsized, speculative returns. Institutions are underwriting risk-adjusted performance, liquidity, custody arrangements and operational resilience long before they look at upside potential.”
AAVE’s price performance since 2021. Source: Coingecko
And while that doesn’t mean institutions are immune to emerging narratives, they generally look at whether the underlying infrastructure can support meaningful capital allocation rather than whether the token could 100x.
“It’s usually a mix, and the order matters,” Sen says. “Most of these themes, DeFi, AI, memecoins, do start with a genuine shift: a real technical unlock or a new use case that wasn’t possible before.”
Once the narrative begins attracting speculative money, however, prices often move faster than fundamentals, he says.
“Investors arriving later in a cycle are often responding to the narrative as much as the fundamentals that started it […] Institutional capital, which tends to move on process and discipline rather than trend-following, is often a step behind the initial narrative and a step ahead of the correction.”
The next Bitcoin isn’t really the point
The search for the next life-changing investment is unlikely to disappear, and neither, Statman argues, is the human desire to improve one’s circumstances.
The next 100x token certainly exists, and investors will continue to seek it — even when the odds and fundamentals say they’re looking in the wrong place.
Magazine: The real reason DeFi projects that survived 2022 crash are shutting down now
Cointelegraph publishes long-form journalism, analysis and narrative reporting produced by Cointelegraph’s in-house editorial team with subject-matter expertise. All articles are edited and reviewed by Cointelegraph editors in line with our editorial standards. Some articles contain affiliate links, from which Cointelegraph may earn a commission. These relationships do not influence which products we review or our editorial conclusions. Content published in here does not constitute financial, legal or investment advice. Readers should conduct their own research and consult qualified professionals where appropriate. Cointelegraph maintains full editorial independence.
Stablecoin infrastructure firm Brale is rolling out an interoperability protocol designed to end what it says is a bottleneck in the industry’s growth: moving a rapidly expanding number of custom stablecoins across blockchains.
Dubbed ION Protocol, it allows participating stablecoins to move between blockchains by burning tokens on one network and minting an equivalent amount on another. Unlike most blockchain bridges, the model does not require liquidity pools to be pre-funded on every supported chain.
While the $300 billion stablecoin market is dominated by Tether’s USDT and Circle Internet’s USDC, new participants are piling in. Banks, fintechs, crypto firms and asset managers are increasingly issuing their own branded tokens for payments, settlements and tokenized assets.
Data provider CoinGecko already tracks more than 350 of the coins, whose value is pegged to a real-world asset such as a fiat currency, underscoring the growing need for infrastructure to connect an increasingly fragmented ecosystem. Brale argues today’s interoperability model won’t scale as more issuers introduce their own versions.
Stablecoin scaling problem
The company supports over a hundred stablecoin programs across more than 30 blockchains, founder and CEO Ben Milne said in an interview with CoinDesk. Many of its customers process billions of dollars in monthly payment volume while maintaining relatively small stablecoin balances because their tokens are designed for transactions rather than investment.
Elon Musk Grok AI predicts a major re-rating for SpaceX, and this price prediction leans entirely on execution catching up to hype. Flight 14, targeted for August 2026, is expected to deliver the first stable orbital insertion plus a ship tower catch, the milestone that finally proves the vehicle works the way the whole valuation assumes it will.
Successful propellant transfer demos and early orbital refueling are named as the next dominoes. Unlocking those pieces means full reusability, payloads above 100 tonnes, and mass deployment of Starlink V3 satellites at more than 50 per flight.
That kind of cadence supercharges more than just launch volume. Direct to Cell and Starlink revenue, already running at an estimated $11 billion to $15 billion annualized and reportedly profitable, are projected to push past $20 billion.
A second growth engine sits alongside the rocket business entirely. AI and compute infrastructure, through Colossus, xAI integration, and GPU leases with Google and Anthropic, is expected to grow segment revenue from low single digit billions toward $15 billion to $35 billion by 2027, based on modeling from Goldman and Morgan Stanley.
First public earnings in August 2026, combined with clarity after lockup expirations, are framed as the events that confirm the bigger picture. Total revenue is projected to accelerate from $39 billion in 2026 to roughly $65 billion to $75 billion in 2027, alongside a positive EBITDA trajectory, Florida pad readiness, Golden Dome and Starshield defense contract wins, and continued Artemis HLS progress.
Consensus targets cluster between $225 and $300, with Morgan Stanley at $300 and some models running above $400. Grok frames that gap as the setup for a straightforward 2x re-rating from the current $1.5 trillion valuation following the post IPO washout.
The bear case is narrower by comparison. Further Starship slips, heavy lockup supply hitting the market after earnings, or valuation compression on an already high price to sales ratio and heavy capital spending could keep shares range bound near $100 to $140.
SpaceX Price Prediction: SPCX Shares Are Down Nearly 45 Percent From Their June Peak
Price closed at $116.44, up 0.57%, in a session ranging between $114.95 and $118.12. That is a small green candle sitting near the bottom of a decline that has been almost uninterrupted since mid June.
Shares spiked to a peak near $217 in mid June, then rolled over hard, falling in a long, steady staircase with barely any relief rallies along the way. A brief bounce attempt in late June and early July stalled just above $170 before the selling resumed and dragged price down to current levels near $110.
That kind of persistent, low volatility grind lower is different from a sharp crash. It suggests steady distribution rather than panic selling, which lines up with the bear case concern about lockup supply working through the market.
Support sits right around $110, the recent low this stock just tested. Below that, there is little recent chart history before price would be moving into territory not seen in this window.
Resistance stacks at $130, then $150, then the heavier ceiling near $170 where the early July bounce failed. Momentum here is tentatively stabilizing after weeks of decline, but nothing on this chart yet suggests the selling pressure has fully broken.
For Grok’s bull case to gain any real footing, shares first need to reclaim $170, a level this stock has not closed above in a month. Until that happens, the current price sits far closer to the bear case range than to anything resembling the path toward $225.
Don’t Miss Out on Our $1,000 USDT Airdrop on ByBit
LiquidChain Is Catching the Attention of SpaceX holders: Grok AI Predicts It’s the Next 100x
The rotation is already happening. Most people will only see it in hindsight.
Large-cap crypto is not failing. It is capped. Bitcoin, Ethereum, and XRP have been pressing against the same resistance bands for weeks. The macro tailwinds keep getting delayed.
The institutional inflows keep getting pushed to next quarter. Holding assets where the upside depends on catalysts you cannot control is not a strategy. It is waiting.
A capital that has navigated enough cycles does not wait at resistance. It moves before the destination becomes obvious.
Early-stage infrastructure plays operate on different math entirely. A small enough market cap means a modest rotation produces dramatic price movement. The asymmetry exists because the market has not priced in what is being built yet. That gap between current valuation and what the project is actually worth is where the returns come from.
Multi-chain fragmentation costs DeFi real money every single day. Bitcoin, Ethereum, and Solana run completely isolated liquidity systems with no native way to connect them. Every user moving value between ecosystems absorbs that cost directly in fees, slippage, and failed transactions.
LiquidChain collapses all 3 networks into a single execution layer. One deployment. Full ecosystem access. No cross-chain tax on every interaction.
The market has not found this yet. That is the entire point.
The presale is at $0.01454 with just over $820,000 raised. Ground floor is not a marketing phrase here. It is a description of where this actually sits in its lifecycle.
Execution is unproven. Adoption is unknown. Those risks are real and worth naming directly. Established assets offer a smoother ride toward a ceiling that is already visible. This offers an earlier seat at a table that has not been set yet.
Explore the LiquidChain Presale
The post Elon Musk Grok AI Just Predicts This Shocking SpaceX Stock Prediction for 2027 appeared first on Cryptonews.
XRP price has collapsed roughly 67% from its all-time high, the deepest wound among major cryptocurrencies (the top 5 excluding stablecoins). Additionally, its market setup is turning more dangerous by the week.
This is not ordinary market weakness. A rare pileup of leveraged longs and a quiet retreat by the largest whales are combining to make XRP the most fragile major coin in the market.
XRP Price Has Fallen Harder Than Any Major Coin
A cross-asset drawdown tracker, which measures how far each coin sits below its record high, puts XRP dead last. The token is down about 67% from its peak, against roughly 48% for Bitcoin, 60% for Ethereum, and 56% for BNB.
The damage worsens over three months. XRP’s 90-day return sits near negative 21%, the worst of the four majors, and the token is 355 days from its peak with no recovery in sight.
That is the signature of a high-beta-alt regime. When risk appetite drops, XRP does not hold the line like a safe-haven asset. It amplifies the fall, dropping more than the market. As of now, it is trailing its peer average by over 12 percentage points.
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Repeated bounces have failed, with XRP’s recovery attempts rejected at resistance. The deeper question is what makes XRP fall faster than every coin besides it.
Crowded Longs Have Trapped XRP With No Buyers Left
The first driver is a one-sided derivatives book. A divergence read that compares the net-long bias of top traders (smart money) against the retail crowd shows both groups leaning long on XRP at once.
Top traders sit at a net-long bias of +29 and the retail crowd at +27, a divergence of just +2, which the tool flags as an aligned, or crowded, long. Nearly every participant is already positioned the same way.
Here is why that is dangerous. When almost everyone is already long, there is no fresh buyer left to lift the price. So the XRP price struggles to rise. And the moment it slips, leveraged longs are forced to sell into the drop, which drags it down faster. XRP traders have already lost $700 million in one such cascade this cycle.
Bitcoin carries none of this risk for now. Its read is neutral, with top traders at +2 against a retail crowd at +15, a negative divergence of 13. Big money is not crowding Bitcoin longs, so it has room to run that XRP does not.
The Biggest Whales Are Bailing at the Worst Moment
The final driver sits beneath the price. Santiment data on wallets holding 1 billion XRP or more shows their share of supply sliding from 39.4% on April 30 to about 38.65% now, a steady three-month decline.
The percentage looks small, but it covers billions of tokens and cuts against the earlier accumulation narratives. The strongest hands are selling, not adding.
This is the part that turns a bad setup into a trap. Whales are normally the buyers who absorb heavy selling and put a floor under the price. With the largest holders stepping back instead, that floor is thinning at the exact moment over-leveraged longs need someone to sell into. When the crowd is forced out, nothing is left to catch the token.
That is the full mechanism. Trapped longs on top and vanishing whale support underneath explain why XRP free-falls while its peers merely drift. XRP holders are already sitting on billions in unrealized losses, and only a flush of those longs or a return of whale buying would signal the end of pain.
The post Why Does XRP Fall Faster Than Every Other Major Coin? appeared first on BeInCrypto.
XRP Ledger has activated its fixCleanup3_2_0 amendment, making version 3.2.0 the minimum software release required for nodes to remain compatible with the mainnet.
Summary
- The amendment received 85.71% validator support, with 30 votes in favor and five against.
- Nodes running version 3.1.0 or earlier are now amendment-blocked until operators upgrade.
- The update fixes issues affecting vaults, lending, permissioned trading and Multi-Purpose Tokens.
- Version 3.2.0 also renames the core server software from rippled to xrpld.
XRP Ledger activates fix with 85.71% support
XRPScan data shows that fixCleanup3_2_0 is now active after securing support from 30 of the 35 trusted validators that participated in the vote. Five validators opposed the amendment.
XRPL amendments that change transaction processing must maintain at least 80% support among trusted validators for two consecutive weeks before activation. The latest proposal cleared that requirement with 85.71% consensus.
Activation immediately affects infrastructure operators running older software. Nodes on version 3.1.0 or below are now “amendment blocked,” meaning they cannot follow the updated rules governing validated ledgers.
“The fixCleanup3_2_0 amendment is now active. With this, all nodes running version 3.1.0 and below are amendment blocked until they upgrade to 3.2.0. Please take action to ensure service continuity,” XRPScan said.
The warning applies to exchanges, wallet providers, payment services, developers and other businesses that operate their own XRPL infrastructure. Users holding XRP in self-custody wallets do not need to change their tokens or move funds because of the amendment.
What fixCleanup3_2_0 changes
The amendment introduces a package of protocol corrections included in the XRP Ledger 3.2.0 release. It does not add a new user-facing product or alter XRP’s supply.
Among the changes are precision and rounding fixes for Single Asset Vaults and the Lending Protocol. The package also corrects an invariant affecting valid offer deletions on the Permissioned DEX.
Other changes validate non-canonical Multi-Purpose Token amounts, add a zero DomainID check for permissioned domains, and introduce an invariant that checks whether deleted accounts leave directly accessible ledger objects behind.
XRPL data cited after activation showed that 105 validators, or 70% of the network total, were running version 3.2.0. Another 35 validators, representing 23.33%, remained on version 3.1.3.
Among other nodes, 582, or 68.88%, had adopted version 3.2.0, while 228 nodes, or 26.98%, were still using version 3.1.3. Operators on 3.1.3 are above the version range identified in XRPScan’s amendment-block warning, although XRPL developers have urged all operators to complete the 3.2.0 migration.
Version 3.2.0 renames rippled to xrpld
Released in mid-June, version 3.2.0 also changed the name of XRPL’s reference server implementation from “rippled” to “xrpld.” The rename follows XLS-0095, a proposal designed to link the software’s identity more directly to the XRP Ledger.
The change extends beyond the server executable. Operators upgrading from version 3.1.3 must rename the configuration file from rippled.cfg to xrpld.cfg and revise related database paths, packages, scripts, deployment settings, service definitions, and metadata.
XRPL’s migration documentation provides steps intended to preserve existing node data while replacing the former naming conventions.
Developers describe version 3.2.0 primarily as a cleanup and maintenance release. It retires amendments that had remained active for more than two years and continues dividing the libxrpl codebase into smaller modules to support future maintenance.
XRPL upgrade follows $2.6B RWA increase
The activation comes as the ledger handles a growing amount of tokenized real-world assets. As crypto.news reported on July 26, XRPL added about $2.6 billion in RWA value over six months, excluding stablecoins.
That ranked the network second for net RWA inflows during the period, behind BNB Chain’s roughly $3 billion. Stellar followed with about $2.1 billion.
XRPL’s combined distributed and represented RWA value reached approximately $4.38 billion, while stablecoins added another $995.12 million. The wider total exceeded $5.37 billion.
For US businesses using XRPL for tokenized assets, payments, or exchange infrastructure, the amendment creates an operational requirement rather than a new regulatory rule. Operators must keep their server software compatible to avoid service interruptions as activity on the network expands.
Barclays analyst Benjamin Budish estimates Coinbase processed roughly $152 billion of trading volume during the quarter, well below the Street’s expectation of about $178 billion. He expects adjusted EBITDA to come in roughly 3% below consensus, pointing to weaker blockchain rewards and institutional trading revenue.
Clear Street’s Owen Lau also lowered estimates, projecting approximately $160 billion in trading volume and $301 million in adjusted EBITDA after weaker-than-expected retail activity.
Benchmark’s Mark Palmer similarly reduced his EBITDA forecast to $377 million, while Compass Point expects revenue to slightly miss consensus but believes EBITDA will be roughly in line with expectations.
Coinbase still rises and falls with crypto trading activity, a dependency that has become more apparent over the past year. The company has spent heavily to diversify revenue through stablecoins, derivatives, payments, tokenization and its Base blockchain. Those businesses continue to grow, but they remain relatively small compared with transaction revenue.
Subscription stability
One area where analysts are more constructive is subscription and services revenue.
This segment includes interest income from USDC, staking rewards, custody fees, Coinbase One subscriptions and institutional services. Because those businesses are less tied to daily trading volumes, analysts expect them to provide a cushion against weaker transaction revenue.
Sometimes, you become defensive precisely because being a good partner—or friend or employee—matters so much to you. “It’s a sign that they care so much that they’re terrified of getting it wrong,” Harrison says.
Trade certainty for curiosity
Defensiveness has a way of making you feel absolutely certain: You’re right, they’re wrong, and if you could just explain yourself clearly enough, they would finally see it. But the harder you work to prove your point, the less attention you’re paying to theirs.
Katzman, who has spent decades in improvisational theater alongside his clinical work, suggests doing the opposite. “The way out is not to think faster,” he says. “It’s really to become curious sooner.”
Improv offers a surprisingly useful model. Onstage, “blocking” means rejecting the premise your scene partner has introduced. If they announce that it’s raining and you insist that it isn’t, the scene has nowhere to go. “When we block each other, that’s what defensiveness really does,” Katzman says. “I’m negating your reality, you’re negating mine.”
Crypto World
Bitcoin Price Analysis: Bearish Sentiment Persists but BTC’s Next Move Hinges on the Fed
Bitcoin remains trapped below key higher-timeframe resistance despite managing to stabilize above an important support region. While the broader trend is still bearish, the latest recovery attempt is accompanied by a notable uptick in the Exchange Whale Ratio, suggesting larger players are becoming increasingly active.
Bitcoin Price Analysis: The Daily Chart
On the daily timeframe, BTC continues to trade below both the 100-day and 200-day moving averages, which are positioned around the $68K and $72K regions, respectively. The bearish alignment of these moving averages confirms that sellers still control the broader trend.
Following the sharp breakdown in early June, Bitcoin has entered a prolonged consolidation phase between the $58K support area and the $66K resistance zone. The price is currently hovering around $64K after several failed attempts to reclaim the overhead supply near $66K.
The $66K level represents the first major resistance, while a stronger barrier lies around $74K, just above the 100-day and 200-day moving averages. A sustained breakout above these levels would improve the medium-term outlook and could expose the $82K resistance area.
On the downside, buyers will likely defend the blue demand zone around $60K if the market visits it in the coming weeks. Below that, the next major support sits near $54K. As long as BTC remains above the $60K level, the current consolidation structure remains intact, although the inability to reclaim $66K keeps the broader bias cautious.
BTC/USDT 4-Hour Chart
The 4-hour chart shows Bitcoin rebounding after sweeping liquidity below the $63K support zone. Buyers stepped in aggressively following that move, pushing price back above the level.
The price is now attempting to reclaim the former ascending channel after breaking below its lower boundary. While this recovery is constructive, BTC still faces immediate resistance between $65K and $66K, highlighted by the nearby supply zone.
A successful breakout above this resistance could trigger another attempt toward the upper boundary of the broader range around $67K. However, repeated rejection from this area would reinforce the ongoing sideways structure and increase the probability of another revisit to the $63K support level.
Momentum has also improved modestly, with RSI climbing back around the 50 mark, but buyers still need stronger follow-through to shift short-term market structure decisively in their favor.
On-Chain Analysis
The Exchange Whale Ratio EMA has started climbing sharply after spending several weeks at relatively subdued levels. This metric measures the proportion of the largest exchange inflows relative to total inflows, with higher readings generally indicating that larger holders are becoming more active.
Historically, rising whale activity often precedes periods of elevated volatility, particularly when price approaches important technical levels. The latest increase coincides with Bitcoin’s struggle below major resistance, suggesting that large market participants may be positioning around this consolidation phase.
If the Exchange Whale Ratio continues rising while BTC remains below $66K, the risk of renewed distribution and another leg lower could increase. Conversely, a successful breakout above resistance despite elevated whale activity would indicate that demand is absorbing larger sell-side flows, potentially paving the way for a stronger recovery toward the higher resistance zones.
The post Bitcoin Price Analysis: Bearish Sentiment Persists but BTC’s Next Move Hinges on the Fed appeared first on CryptoPotato.
The Ethereum Foundation (EF) has appointed longtime ecosystem contributor pcaversaccio (known as “pc”) to its board, expanding the group’s leadership as it continues to refine the governance of the organization behind the world’s second-largest blockchain.
pc, a security researcher and co-founder of the emergency response initiative SEAL 911, joins the board for an initial one-year voluntary term. He has also served on the EF’s Silviculture Society, an advisory group that provides informal guidance on preserving the foundation’s core principles, including censorship resistance, open source development, privacy and security.
The appointment brings the Ethereum Foundation’s board to four members: President Aya Miyaguchi, Ethereum co-founder Vitalik Buterin, Swiss legal counsel Patrick Storchenegger and pcaversaccio.
The board is responsible for setting the EF’s strategic vision and ensuring management’s decisions remain aligned with the organization’s values, accordinfg to the Foundation. It also serves as a “security council” tasked with safeguarding the foundation’s mission and ensuring compliance with the laws of Switzerland, where it is currently based.
BNY has expanded its blockchain strategy by bringing the ownership records behind investment funds onchain through a new digital transfer agency platform for institutional clients.
Summary
- BNY has launched a blockchain based transfer agency platform to keep fund ownership records onchain.
- The service will first support tokenized funds from Baillie Gifford, BlackRock and BNY Dreyfus.
- BNY’s transfer agency business manages about $8.6 trillion in assets across 7.6 million investor accounts.
- The launch follows BNY’s recent expansion into USDC services and MiCA regulated crypto custody in Europe.
The Financial Times reported that the New York-based custodian bank will launch a blockchain-enabled version of its transfer agency business, allowing fund ownership records and investor transactions to be maintained on a shared digital ledger while continuing to operate its existing transfer agency services.
BNY has moved fund ownership records onto blockchain
Rather than tokenizing only investment products, BNY is applying blockchain technology to the record-keeping infrastructure that supports fund operations. According to the Financial Times, the platform will keep official ownership records onchain, creating a shared source of information for participants involved in fund administration.
Carolyn Weinberg, BNY’s chief product and innovation officer, told the publication that the project modernizes the books and records supporting fund transactions by moving them onto blockchain infrastructure.
Transfer agents maintain official records of fund investors, process subscriptions and redemptions, update shareholder registers and support communications between funds and investors. Those records are usually spread across systems operated by fund managers, custodians and administrators, making regular reconciliation necessary.
By placing the records on a shared ledger, BNY intends to reduce the need for separate databases while giving authorized participants access to the same source of ownership information.
According to the report, BNY’s transfer agency business supports approximately $8.6 trillion in assets across 7.6 million investor accounts. The bank separately oversees more than $59 trillion in assets under custody and administration.
Early tokenized funds are already using the platform
Among the first institutions adopting the platform is Edinburgh-based asset manager Baillie Gifford, which plans to use it for what the firm described as the United Kingdom’s first fully native regulated tokenized fund.
“What we have in the blockchain is a shared source of record-keeping between the participants. We agree that this is the source of truth when people are dealing with the asset that this is monitoring,” Theo Golden, Baillie Gifford’s head of digital assets, said.
The report also said BlackRock and BNY Dreyfus’ money market fund and cash management business are expected to use the platform for future tokenized fund offerings.
According to Baillie Gifford’s website, the firm manages roughly $261 billion in assets.
BNY has not identified the blockchain network that will power the new platform. Cointelegraph said it contacted the bank for comment but did not receive a response before publication.
Digital asset work has continued across custody and regulation
The transfer agency launch builds on several digital asset initiatives introduced by BNY over recent months.
In June, the bank added USDC minting, redemption, custody and transfer capabilities to its Digital Asset Custody platform, giving institutional clients direct access to Circle’s stablecoin through BNY’s infrastructure.
The bank already serves as the primary custodian for the assets backing USDC, and the rollout extended its role beyond reserve custody into operational stablecoin services.
At the time, BNY said USDC was the first stablecoin supported on its custody platform and that additional stablecoins and digital cash workflows would follow.
The announcement also came after the bank partnered with Abu Dhabi-based Finstreet and the ADI Foundation to develop institutional custody services for Bitcoin and Ether, with plans to later include stablecoins and tokenized real-world assets.
MiCA approval has added another regulated digital asset business
The latest blockchain initiative also follows BNY’s regulatory expansion in Europe.
Earlier in the week, the European Securities and Markets Authority added BNY SA/NV, the bank’s Belgian subsidiary, to its interim Markets in Crypto-Assets register after authorization from the National Bank of Belgium. The approval allows the subsidiary to provide crypto-asset custody and transfer services under the European Union’s MiCA framework.
The authorization placed BNY alongside other banks and financial institutions expanding regulated digital asset operations across Europe as more firms complete the licensing process following MiCA’s transition deadline.
BNY’s recent announcements show the bank extending blockchain technology across several layers of institutional financial infrastructure, including regulated crypto custody, stablecoin services and the operational record-keeping systems that support tokenized investment funds.
OpenAI’s AI agent, which broke out of a secure test environment and hacked Hugging Face, also exploited vulnerable code written by a Modal Labs customer.
Modal’s chief technology officer confirmed the exploit but stressed that Modal itself was not breached.
How the OpenAI Agent Reached Modal Labs’ Customer
In a recent blog post, OpenAI revealed that its AI models were behind the AI-driven security incident at Hugging Face. The firm called it an “unprecedented cyber incident.”
New details show the rogue AI agent reached beyond Hugging Face’s own systems. Modal CTO Akshat Bubna told Reuters that it exploited a customer’s vulnerable code hosted on Modal.
Bubna explained that the customer had published an endpoint with no authentication. Anyone on the internet could use their sandboxes to execute code.
“Modal’s platform or isolation were not compromised in any way,” the executive stated.
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Hugging Face described the rooted sandbox in its own technical timeline published on July 27. The post said the sandbox sat on a third-party provider’s infrastructure, but did not name the provider.
OpenAI’s July 28 update states that the models used publicly exposed credentials to reach 4 accounts on 4 services.
“One of these four accounts was used as an outbound relay and staging path, and another account was used for data storage. The remaining two accounts were accessed by the models in a read-only manner, and were not used in furtherance of compromising Hugging Face,” the firm said.
OpenAI also deactivated, encrypted, and restricted research access to the internal prototype model involved. It says no other activity matched the severity or scale of the platform-level Hugging Face compromise.
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The post The OpenAI Agent That Hacked Hugging Face Reached a Second Firm appeared first on BeInCrypto.
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