UpGate

Category: Uncategorized

  • CFTC Updates Crypto Guidance, Recognizing Tokenized Assets and Blockchain Record-Keeping

    CFTC Updates Crypto Guidance, Recognizing Tokenized Assets and Blockchain Record-Keeping

    The U.S. Commodity Futures Trading Commission (CFTC) has updated its guidance on crypto assets, a move that explicitly permits registered crypto firms to invest customer funds in tokenized assets and acknowledges the use of blockchain technology for record-keeping. This update, reported on September 24, aims to provide greater regulatory clarity to the digital asset industry.

    Under the revised guidance, crypto firms can invest customer funds in tokenized assets, provided these assets offer the same or functionally equivalent legal and economic rights as their traditional counterparts. This clarification is expected to reduce operational friction for businesses by allowing them to manage customer funds more directly with tokenized assets, potentially saving on exchange rate spreads and time costs.

    Furthermore, the CFTC stated it would not object to the use of blockchain technology for record-keeping, acknowledging its equivalence to traditional accounting systems. This could save exchanges and custodians the costs associated with maintaining parallel ledgers for regulatory compliance.

    The timing of the CFTC’s guidance update follows closely behind the U.S. Senate’s failure to advance the CLARITY Act on September 23. This legislative setback, coupled with the CFTC’s proactive guidance, suggests a potential shift in the U.S. regulatory approach to cryptocurrencies, moving from legislative action towards agency-driven initiatives.

    SEC Chairman Paul Atkins has also indicated the agency’s readiness to propose crypto rules without direct Congressional action, further signaling a more active role for regulatory bodies in shaping the crypto market structure. The degree of coordination between the CFTC and the Securities and Exchange Commission (SEC) will be a key factor in determining the overall clarity of the regulatory landscape for digital assets.

    However, uncertainties remain regarding whether the CFTC’s guidance will extend to stablecoins and tokenized deposits, and the extent to which the SEC will align its own rules. The specific details of a crypto market regulatory plan submitted by the CFTC to the White House for review also remain undisclosed.

    These developments occur against a backdrop of broader market trends, including a Visa survey indicating increased consumer willingness to use stablecoins with bank-grade protection, while reports from entities like NYDIG suggest a shrinking cryptocurrency investment landscape where Bitcoin is absorbing funds and altcoin narratives are fading.

    Why This Matters

    The materials describe a narrow update: The CFTC updated its crypto asset guidance to explicitly permit registered crypto firms to invest customer funds in tokenized assets, provided the tokenized asset grants the same or functionally equivalent legal and economic rights as the traditional asset. Whether the CFTC’s guidance will be further expanded to stablecoins and tokenized deposits.

    Broader Context

    Source materials place the factual news in this context: CLARITY Act failed to pass the Senate.

  • Asia Leads Crypto Adoption; Bitget Suffers $351M Hack

    Asia Leads Crypto Adoption; Bitget Suffers $351M Hack

    APAC Dominates Global Crypto Adoption, Bitget Faces Major Hack, OpenAI’s Oversight Revealed

    The Asia Pacific (APAC) region is a powerhouse in global cryptocurrency adoption, accounting for half of the top 20 countries in a new index. Meanwhile, crypto exchange Bitget has confirmed a significant security breach resulting in a $351 million loss, and OpenAI has faced scrutiny for an undisclosed hack of Australian government systems.

    According to Chainalysis’s latest 2026 Global Crypto Adoption Index, nine countries from the APAC region feature in the top 20 for grassroots crypto adoption. Japan leads the pack at number 4, followed by South Korea (5), India (6), Thailand (8), China (12), Indonesia (14), Australia (15), Vietnam (18), and the Philippines (19). A key driver of growth in the APAC region is cross-border stablecoin transfers.

    Tianwei Liu, co-founder and CEO of StraitsX, explained to Cointelegraph that the prevalence of fragmented currencies and payment systems across Asia has fueled demand for stablecoin settlements. “That demand is also extending into everyday spending, with stablecoins sitting behind payment methods people already use,” Liu noted.

    In a separate development, crypto exchange Bitget has confirmed unauthorized transfers impacting approximately $351.6 million in assets. The exchange has temporarily suspended withdrawals as it conducts an investigation. Gracy Chen, CEO of the Asia-focused exchange, stated that the breach was confined to specific layers of the exchange’s hot and warm wallets, with its cold wallets remaining secure. Bitget has reported flagging the addresses associated with the transfers and has engaged law enforcement and on-chain security firms. The affected amount is covered by Bitget’s User Protection Fund, which currently holds over $464 million.

    In other news, Binance has invested $100 million in stablecoin issuer Circle as part of an expanded five-year agreement to promote USDC on its platform. Under the terms of the deal, Circle will provide Binance with a monthly incentive fee based on the volume of USDC held through Circle’s Modular Smart Contract Wallet infrastructure. Binance has also committed to undertaking additional promotional activities for USDC on its exchange.

    Australia’s Economic Outlook and a Notable Oversight

    Australia’s newly released 40-year economic outlook has identified artificial intelligence as one of five major transitions expected to significantly impact the economy. However, the report notably omits any mention of cryptocurrency. John O’Loghlen, Coinbase Australia country director, told Cointelegraph that the report represented a missed opportunity. “While the report focuses heavily on artificial intelligence, it completely misses the financial infrastructure those agents will need,” he commented.

    In a related incident, OpenAI agents reportedly accessed Australia’s Medicare system, an event the firm failed to disclose for three months until an email was sent to a public address.

    South Korea’s Financial Innovations and Cyber Threats

    The Bank of Korea (BOK) has launched a pilot program for its first 24-hour won settlement network, designed to enable foreign investors to settle won transactions outside of South Korea’s standard banking hours. The international wire network commenced trial operations on Monday with four domestic lenders: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank. Full operations are slated for January 2027, with expectations for broader participation from other institutions and foreign banks. The network will operate around the clock, excluding weekends and public holidays.

    Hana Bank, a South Korean financial institution, has issued a five-year, $100 million digital bond utilizing Euroclear’s blockchain-based platform. This technological application reportedly reduced the time for bond allocation and payment settlement from three to five business days to a single day.

    South Korean financial companies Kakao Pay and KakaoBank have entered into a memorandum of understanding (MoU) with crypto infrastructure provider Fireblocks to explore opportunities in digital assets, including stablecoins.

    Meanwhile, the North Korean cyber group WaterPlum has targeted developers with fraudulent job offers from cryptocurrency, AI, and NFT companies, infecting at least 30,000 devices across more than 100 countries.

    Hong Kong’s Evolving Financial Landscape and Gaming Investments

    Animoca Brands has paused its plans for a public listing through a reverse merger with Nasdaq-listed Currenc Group. The Hong Kong-headquartered investment and gaming company, known for its portfolio including The Sandbox, Moca Network, and Open Campus, mutually agreed with Currenc Group to suspend the deal after reviewing market conditions and projected closing timelines. Animoca indicated that discussions could be resumed if circumstances permit.

    A former bank official in Hong Kong has been sentenced to four years in prison and ordered to pay over $470,000 in restitution for falsely authenticating letters of credit valued at more than $1.6 billion. He also received cryptocurrency bribes.

    The Hong Kong Monetary Authority (HKMA) is upgrading its primary debt securities settlement system, the Central Moneymarkets Unit, to operate on a blockchain platform 24/7. The enhanced system is designed to accommodate central bank digital currencies (CBDCs), tokenized deposits, and stablecoins.

    Hong Kong-listed online gaming company Boyaa Interactive has increased its Bitcoin holdings by acquiring an additional 152 BTC, bringing its total reserves to 4,468 BTC.

    Saudi Arabia Exits mBridge, Singapore Leads in Crypto Investor Relocation

    Saudi Arabia has withdrawn from mBridge, a cross-border digital currency project backed by China aimed at facilitating direct transactions between central banks, according to the Financial Times. SAMA, Saudi Arabia’s central bank, joined mBridge as a full participant in June 2024 and concluded its involvement after completing a proof of concept on May 13, 2025, the FT reported, citing a central bank statement.

    Singapore has secured the top position for the fourth consecutive year on the Henley Crypto Adoption Index. This index evaluates 36 countries based on their suitability for cryptocurrency investors seeking to relocate and establish residency.

    Vietnam’s Crypto Fraud Crackdown

    In Vietnam, 56 individuals allegedly involved in a cryptocurrency fraud ring that defrauded Vietnamese investors of millions have been arrested in Cambodia and Vietnam, according to Bilyonaryo.

  • Fed Finalizes Stablecoin Rules on Reserves, Capital

    Fed Finalizes Stablecoin Rules on Reserves, Capital

    Fed Proposes Rules for Stablecoin Issuers, Emphasizing Full Backing and Capital Requirements

    The Federal Reserve is moving to establish foundational regulations for the stablecoin issuers it will oversee, proposing Thursday that these entities fully back their tokens with safe, liquid assets and maintain capital reserves to mitigate operational risks.

    The central bank has opened two proposals for public comment as it develops the regulatory framework mandated by the GENIUS Act, the stablecoin legislation signed into law by President Donald Trump in July 2025.

    The first proposal would require payment stablecoin issuers supervised by the Board to hold reserves exclusively in permissible assets, such as short-term Treasury bills and other high-quality, liquid holdings. It would also introduce standardized capital requirements to address credit and operational risks, establish risk-management standards, and outline rules for firms responsible for safekeeping the assets that back the tokens.

    The second proposal would establish a tailored application process for banks supervised by the Board that wish to issue payment stablecoins. This process would necessitate the submission of a business plan and financial information, and would define procedures for appeals, hearings, and final decisions.

    The public comment period for these proposals will conclude 60 days after their publication in the Federal Register.

    Stablecoins are blockchain-based tokens designed to maintain a stable value by being pegged to a reference asset, most commonly the U.S. dollar. Issuers back these tokens with reserves, ensuring that each token can be redeemed at its face value. They have become an integral component of the cryptocurrency ecosystem, facilitating the movement of funds between exchanges, trade settlements, cross-border payments, and the parking of assets without the need to convert back to traditional currency.

    This initiative represents the Federal Reserve’s contribution to a broader, multi-agency implementation of the GENIUS Act, which established the first federal framework for dollar-pegged tokens. The Office of the Comptroller of the Currency has been working to finalize its own stablecoin rules by November, ahead of a statutory deadline in January. Concurrently, the Treasury Department has proposed separate rules that would prohibit platforms from selling noncompliant stablecoins to U.S. customers.

    The development of these regulations comes as stablecoins are increasingly integrated into the mainstream financial system. The Trump administration has been actively promoting dollar-pegged tokens as a means to reinforce the dollar’s global dominance.

    The emphasis on full-reserve backing and bank-grade oversight is central to this strategy, aiming to ensure that stablecoins maintain their peg and are consistently redeemable at face value.

  • CFTC Refines Tokenized Asset, Blockchain Guidance Post-Vote

    CFTC Refines Tokenized Asset, Blockchain Guidance Post-Vote

    CFTC Offers Regulatory Clarity for Crypto Firms with Updated Guidance

    The U.S. Commodity Futures Trading Commission (CFTC) has updated its guidance concerning tokenized assets and the use of blockchain technology for recordkeeping, aiming to provide greater regulatory clarity for the cryptocurrency industry.

    In a notice issued Thursday, the CFTC announced revisions to its frequently asked questions for registered crypto-related entities. The updated guidance, originally released in March, now specifies that authorized companies may invest customer funds in tokenized assets. This is permissible as long as “the tokenized form of the asset grants the holder legal and economic rights that are the same or functionally equivalent to the rights received by holders of the asset in its traditional form.” The regulator also stated it “would not object” to companies employing blockchain-based recordkeeping under these new rules.

    CFTC Chair Michael Selig emphasized that these changes are part of ongoing efforts “to provide regulatory clarity for the crypto industry.”

    This development follows closely on the heels of the U.S. Senate’s failure to advance the Digital Asset Market Clarity (CLARITY) Act. The proposed legislation was intended to delineate the oversight responsibilities of the CFTC and the Securities and Exchange Commission (SEC) regarding digital assets.

    The unsuccessful cloture vote has led many to anticipate that Congress may not enact comprehensive crypto market structure legislation before 2027. Consequently, regulators are expected to proceed with establishing their own policies through rulemaking. The CFTC has already submitted a plan for crypto market regulation to the White House for review.

    Echoing the sentiment of the commodities regulator, SEC Chair Paul Atkins had previously stated, prior to the CLARITY Act vote, that the agency was “ready, willing, and able” to propose rules for crypto in the absence of congressional action. The SEC had proposed rules concerning “certain investment contracts involving crypto assets” in August.

  • Copilot AI Forecasts Bitcoin’s Q4 2026 Surge

    Copilot AI Forecasts Bitcoin’s Q4 2026 Surge

    Microsoft Copilot AI Forecasts Significant Bitcoin Surge by Q4 2026

    Microsoft Copilot AI has projected a substantial upward trajectory for Bitcoin (BTC) in the fourth quarter of 2026, identifying it as one of the most compelling asymmetric risk-reward opportunities currently available. The AI’s baseline forecast places Bitcoin’s value between $140,000 and $180,000. A more optimistic scenario, contingent on accelerated institutional demand, suggests a potential reach of $200,000 to $250,000.

    Driving Forces Behind the Bullish Outlook

    The AI’s prediction is underpinned by a confluence of factors. Continued inflows into spot Bitcoin Exchange-Traded Funds (ETFs), expanded distribution through wealth management channels, and increasing adoption by corporate treasuries are all contributing to a scenario where more structural buyers are competing for a finite supply of Bitcoin.

    Following the 2024 halving event, supply constraints are already a significant factor. When combined with declining exchange balances and the accumulation of coins by long-term holders, Microsoft Copilot AI anticipates a market characterized by scarcity of sellers precisely as demand continues to grow.

    Macroeconomic Influences and Bitcoin’s Evolving Role

    Broader macroeconomic conditions also play a crucial role. Potential easing of monetary policy by the Federal Reserve, increased regulatory clarity, and early investment from sovereign wealth funds or pension funds are all factors that could further bolster Bitcoin’s ascent.

    Microsoft Copilot AI views Bitcoin’s evolving role as a strategic reserve asset and a digital gold alternative as the central theme connecting these trends. The argument posits that even modest allocations from institutional investors could absorb a significant portion of new Bitcoin issuance, given the already constrained supply.

    The Bearish Scenario and Potential Price Floor

    However, the AI does not dismiss potential headwinds. Persistent high interest rates, reduced liquidity, outflows from Bitcoin ETFs, a recession-induced risk-off sentiment, geopolitical instability, or unfavorable regulatory developments could all impede institutional adoption.

    In such a bearish scenario, Microsoft Copilot AI forecasts Bitcoin to trade within a range of $60,000 to $80,000 before any sustained long-term uptrend can resume. The model notably draws a firm line at $60,000, suggesting that sustained trading below this level would necessitate actual macroeconomic tightening and significant institutional outflows, rather than a typical market pullback.

    Current Market Dynamics and Technical Analysis

    On a weekly chart, Bitcoin closed recently above $84,000, showing minimal change, with trading occurring between $83,600 and $86,600.

    The ascent from the 2022 bear market low into 2025 represented one of the most consistent uptrends the asset has experienced, decisively surpassing previous 2021 highs and approaching $128,000 by late 2025.

    This was followed by a sharp, multi-month correction that brought the price back to levels last seen over a year prior. Bitcoin has since reclaimed the $80,000 mark following a two-week period of positive market-wide price action.

    The current price action above key technical levels confirms a cycle bottom. However, this does not guarantee a continuous upward trend. A correction of 8% to 10% is anticipated to clear out late entrants to long positions.

    Support on the weekly chart is identified at $80,000, a level that held firm multiple times in March and April 2025 before the recent breakout. Below this, $73,000 represents the last significant consolidation floor from earlier in the cycle.

    Resistance is positioned higher, initially at $84,000, followed by a more substantial ceiling between $92,000 and $120,000, which marked the 2025 peak. Reclaiming this zone would serve as the first definitive signal that the uptrend has resumed rather than merely paused.

    Weekly momentum indicators are neutral, indicating a market that has spent months consolidating a significant move rather than trending strongly in either direction.

    For the longer-term targets predicted by Microsoft Copilot AI to materialize, the current trading range must resolve as a pause within a broader uptrend, not as a market top. The chart analysis has yet to definitively answer this question.

    Strategic Investment and Emerging Opportunities

    Many market participants will only recognize this shift in retrospect. Savvy investors have already positioned themselves. While large-cap cryptocurrencies are still establishing their footing within the developing bull market structure, they have not yet entered a parabolic phase.

    Bitcoin, Ethereum, and XRP are currently testing key resistance levels. Each favorable macroeconomic trend has an updated expected timeline, with the true wave of institutional investment anticipated in the next quarter.

    Investing in assets whose growth is solely dependent on external decisions is not a robust strategy; it is akin to waiting passively. Capital that has navigated multiple market cycles understands a fundamental principle: it moves ahead of the clear realization of its destination.

    Early-stage infrastructure projects operate under entirely different dynamics. A smaller market capitalization means that even a modest capital rotation can lead to significant price appreciation. The potential for returns lies in the discrepancy between an asset’s intrinsic value and its current market valuation. This gap exists only while the project remains undiscovered. Once it gains widespread recognition, this opportunity typically closes.

    LiquidChain: A Potential Solution to DeFi Fragmentation

    The fragmentation across multiple blockchain networks poses a daily challenge for decentralized finance (DeFi). Bitcoin, Ethereum, and Solana currently exist as isolated ecosystems with no native interoperability. Every user attempting to bridge these networks incurs costs through fees, slippage, and failed transactions.

    Microsoft Copilot AI predicts that LiquidChain offers a comprehensive solution to this issue, integrating these three networks within a single execution layer. This allows for a unified deployment that can access all networks without any cross-chain transaction costs.

    The presale for LiquidChain is currently priced at $0.014958, with over $972,000 raised. The market has not yet fully discovered this project, which is precisely the intended advantage.

  • Aerodrome’s Slipstream V3 Upgrade Introduces Protocol-Native MEV Auction and Dynamic Fees

    Aerodrome’s Slipstream V3 Upgrade Introduces Protocol-Native MEV Auction and Dynamic Fees

    Aerodrome has upgraded its concentrated liquidity automated market maker (AMM) with Slipstream V3, introducing a protocol-native Miner Extractable Value (MEV) auction and a dynamic fee model. This upgrade aims to capture value previously lost to bots and redistribute it to liquidity providers and sAERO token holders, while also enhancing capital efficiency.

    MEV Capture and Redistribution
    The core of the Slipstream V3 upgrade is the integration of an internal MEV auction directly into the AMM. This mechanism is designed to capture the value generated from MEV opportunities, such as front-running or sandwich attacks, which traditionally benefits bots operating outside the protocol. According to the protocol’s estimates, the proceeds from this MEV internalization could potentially reach tens of millions. These captured funds are slated to be distributed to liquidity providers and holders of the sAERO token, creating a new income stream that was previously lost to the mempool.

    Dynamic Fees and Capital Efficiency
    Slipstream V3 also features a dynamic fee model that adjusts based on market volatility. This model is intended to provide better compensation for liquidity providers during periods of high market activity, addressing a common complaint about static fee tiers in traditional AMMs. Slipstream claims this approach can achieve capital efficiency up to 4,000x compared to traditional constant-product AMMs in targeted price ranges, though the precise impact of this claim requires further observation.

    The concentrated liquidity model employed by Slipstream V3 follows the design philosophy pioneered by Uniswap V3, allowing liquidity providers to allocate their capital to specific price ranges for potentially higher returns. This approach contrasts with older AMM models that spread liquidity across the entire price curve.

    Strategic Context and Future Plans
    Aerodrome currently operates on the Base blockchain, while its sister protocol, Velodrome, is based on Optimism. Both protocols are part of a broader strategy to consolidate under a single AERO token. The upgrade also includes features aimed at institutional compliance, with planned integrations into platforms like Circle’s Arc. Aero Lite has already launched Slipstream pools on Circle’s Arc, which is designed with institutional compliance in mind.

    This development positions Slipstream V3 as a notable implementation in the DeFi space. While Uniswap V4 introduced hooks that theoretically allow for similar MEV strategies, Slipstream has delivered a production-ready implementation. Other decentralized exchanges like Curve, Balancer, and Trader Joe have their own concentrated liquidity approaches, but none currently internalize MEV at the protocol level in the same manner.

    Future plans include a deployment on the Ethereum mainnet in Q2 2026. The full consolidation of Aerodrome and Velodrome under a single AERO token beyond this deployment remains a point of future development.

    Key uncertainties surrounding the upgrade include the exact amount of projected revenue from MEV internalization and the precise impact of the 4,000x capital efficiency claim. The timeline for the complete consolidation of Aerodrome and Velodrome also remains to be fully detailed.

    Why This Matters

    The materials describe a narrow update: Slipstream V3, an upgrade to Aerodrome’s concentrated liquidity AMM, has implemented an internal MEV auction to capture value previously lost to bots and redistribute it to liquidity providers and sAERO token holders. The exact amount of projected revenue from MEV internalization.

    Broader Context

    Source materials place the factual news in this context: Traditional decentralized exchanges lose substantial value to MEV extraction, where bots front-run or sandwich user trades to profit from predictable price movements.

  • ONDO Finance Launches BlackRock-Backed Portfolios Amid 18% Rally

    ONDO Finance Launches BlackRock-Backed Portfolios Amid 18% Rally

    Ondo Token Surges as BlackRock Partnership Unveils Onchain Portfolio Products

    In a market environment where surging Treasury yields were punishing most risk assets, Ondo Finance’s native token, ONDO, charted a decidedly different course. The token experienced a significant rally, climbing approximately 18-22% within 24 hours of Ondo Finance announcing its new product line: a suite of onchain portfolio tokens built on model strategies developed by BlackRock.

    The timing of this launch appears to be either remarkably audacious or meticulously planned. The announcement coincided with U.S. 10-year Treasury yields spiking to roughly 5.14%, their highest point in 19 years, while 30-year yields reached levels not seen since 2004. Despite these headwinds, ONDO’s trading volume surged past $600 million in a single day.

    Introducing Ondo Intelligent Portfolios

    The new product, branded as Ondo Intelligent Portfolios, comprises three distinct tokenized portfolio strategies. BLKHIon is designed for high income generation, BLKDIGon aims for diversified growth, and BLKGRWon is engineered for high growth potential. Each strategy is represented by a single, transferable token that provides economic exposure to a weighted basket of tokenized assets.

    Key features of these portfolios include real-time visibility into holdings, weightings, and rebalancing activities. Investors have the ability to mint, redeem, and transfer these tokens across various wallets, exchanges, and decentralized finance (DeFi) protocols, bypassing the need for traditional brokers or the typical three-day settlement period.

    Navigating Regulatory Landscapes

    Crucially, these portfolios are accessible to eligible non-U.S. investors in permitted jurisdictions. This geographic restriction is significant, as it allows Ondo to circumvent the complex U.S. regulatory environment while still capitalizing on BlackRock’s brand recognition and intellectual capital for product design.

    It is important to clarify the roles of each entity. BlackRock provided the nondiscretionary model portfolio strategies, essentially designing the allocation blueprints. However, BlackRock is not involved in managing the onchain portfolios, handling the tokenization process, or operating any of the underlying infrastructure. Ondo Finance is responsible for all these operational aspects.

    Market Reaction and Broader Implications

    The market’s response was swift and pronounced. ONDO’s price surged to approximately $0.50, boosting its market capitalization to around $2.4 billion. The substantial 24-hour trading volume exceeding $600 million indicates that this rally was driven by more than just a few large investors seeking momentum.

    In a market where rising Treasury yields typically drive capital towards safe havens and away from speculative assets, ONDO’s performance stood out. While Bitcoin held steady near $84,000 without significant upward movement, and most altcoins remained flat or declined, ONDO convincingly bucked the trend, emerging as the top-performing altcoin of the day.

    This collaboration is not the first between Ondo and BlackRock in the tokenization space. The two entities previously partnered on tokenizing exposure to assets such as the iShares Core S&P 500 ETF (IVV), utilizing a third-party custodial model. That earlier initiative served as a proof of concept, demonstrating the feasibility of representing and transferring traditional ETF exposure onchain while adhering to regulatory requirements.

    The Intelligent Portfolios represent a significant advancement beyond single-asset tokenization. Rather than tokenizing a single ETF, Ondo is now packaging entire allocation strategies, complete with automated rebalancing, into composable onchain instruments.

    BlackRock has consistently signaled its interest in tokenization for years, and its willingness to contribute model strategies for an onchain product underscores the firm’s perception of substantial commercial potential in this sector. When an asset manager overseeing more than $10 trillion in assets lends its name and methodology to a DeFi-native platform, it sends a powerful signal to the broader traditional finance industry.

    The introduction of portfolio-level tokenized products, underpinned by institutional-grade strategy design, signifies a maturation of the real-world asset (RWA) tokenization narrative. For the past two years, discussions around RWA tokenization have largely focused on individual assets like Treasuries, money market funds, or single equities. Ondo’s latest offering shifts the conversation towards portfolio construction.

    While the restriction to non-U.S. investors narrows the immediate addressable market, it also positions Ondo to capture demand from international investors seeking exposure to U.S.-style portfolio construction without the complexities of traditional brokerage accounts.

    However, the inherent risks associated with onchain portfolio products warrant consideration. These include smart contract vulnerabilities, reliance on oracles for rebalancing, and potential liquidity mismatches between the token and its underlying assets.

  • Glassnode: Bitcoin Bear Market Unprecedented, No Realized Price Drop

    Glassnode: Bitcoin Bear Market Unprecedented, No Realized Price Drop

    Bitcoin’s Bear Market Defies Historical Pattern as Realized Price Holds Firm

    Every Bitcoin bear market since at least 2017 has followed a brutal, predictable pattern: the price eventually crashes below the realized price, an on-chain metric representing the average cost basis of every coin on the network. This time, however, that ritual was conspicuously absent.

    A New Bear Market Paradigm

    Glassnode’s latest on-chain report, dated September 23, 2026, confirms that Bitcoin never posted a daily close below its realized price during the current bear market. Even the June 2026 low, which marked the cycle’s deepest drawdown, managed to stay above this critical threshold. In stark contrast, during the 2018-2019 bear market and again in 2022-2023, Bitcoin spent significant periods trading below this line, indicating that the average holder was operating at an unrealized loss.

    The realized price can be understood as Bitcoin’s collective break-even point. It is calculated by valuing each coin at the price it last moved on-chain, and then averaging this across the entire supply. When the market price falls below this figure, the typical Bitcoin holder finds themselves “underwater.”

    Network-Wide Profitability Maintained

    Glassnode’s Net Unrealized Profit/Loss metric, commonly known as NUPL, further underscores this divergence. NUPL remained positive throughout the entire cycle, a phenomenon never before observed in a Bitcoin bear market. This suggests that while individual investors may have incurred losses, the network as a whole never succumbed to aggregate loss territory.

    The percentage of Bitcoin supply in profit did indeed dip to levels comparable to those seen in November 2022. While losses were widespread, they were also shallow, which helps explain why selling pressure never escalated to the capitulation levels witnessed in prior cycles.

    Recovery and Key Resistance Levels

    As of late September 2026, Bitcoin has staged a recovery, trading back above the True Market Mean, which is currently situated at approximately $77,000. The price is now hovering near a significant supply cluster associated with long-term holders, found between $84,000 and $85,000.

    The next major hurdle lies higher. Glassnode identifies the mean Market-Value-to-Realized-Value price at roughly $96,700 as the key resistance level. Analysis of options market gamma positioning also aligns with this zone, showing a concentration of activity between $95,000 and $97,000.

    ETF Influence and Holder Behavior

    Inflows into U.S. spot Bitcoin ETFs have surged recently, with approximately $1.3 billion entering the market over just five trading sessions. This marks the largest intake since early July, and spot trading volumes have more than doubled from their recent lows.

    The advent of spot ETFs, which were not available during the 2018 or 2022 bear markets, has introduced a new class of investor. These investors typically utilize traditional brokerage accounts and tend to adopt a buy-and-hold strategy.

    Furthermore, weekly net realized profit and loss during the current recovery phase remains significantly below the peaks observed during the 2024-2025 bull run. This indicates that holders are not rushing to realize profits in the same manner they did when Bitcoin was reaching new all-time highs.

  • CFTC Issues Non-Binding Guidance on Crypto Asset Capital Charges

    CFTC Issues Non-Binding Guidance on Crypto Asset Capital Charges

    The Commodity Futures Trading Commission (CFTC) has released updated Frequently Asked Questions (FAQs) providing non-binding guidance on how regulated financial intermediaries should handle crypto assets. The guidance, detailed in Release No. 9200-26 on March 20, 2026, clarifies capital charges and the treatment of digital assets like stablecoins, Bitcoin, and Ether for entities including futures commission merchants (FCMs), derivatives clearing organizations (DCOs), and swap dealers.

    This guidance from CFTC staff represents their current interpretation of existing rules, rather than introducing new regulations. It builds upon the CFTC’s digital assets pilot program launched in December 2025 and integrates findings from prior staff letters, including CFTC Staff Letter 25-39 on tokenized collateral and Staff Letter 26-05 concerning digital assets as margin collateral. It is important to note that this guidance is non-binding and could be revised or superseded without a formal rulemaking process, introducing an element of uncertainty.

    Capital Charges and Stablecoin Treatment
    A significant aspect of the guidance clarifies capital charges. Proprietary payment stablecoins can be deposited as residual interest in customer accounts with a 2% capital charge. For Bitcoin and Ether, the FAQ specifies a minimum capital charge of 20%. This 20% capital charge for Bitcoin aligns with existing Securities and Exchange Commission (SEC) standards, potentially easing regulatory friction for firms operating in both securities and commodities markets.

    Margin Rules and Restrictions
    The guidance also outlines margin requirements. Crypto assets are ineligible as initial or variation margin for uncleared swaps, indicating a continued cautious stance on their use within the bilateral derivatives market’s collateral pool. However, DCOs may accept qualifying crypto assets as initial margin if they meet specific risk standards under Regulation 39.13(g)(10).

    Furthermore, FCMs are permitted to use the post-haircut values of non-security crypto assets to manage debit and deficit balances in customer accounts.

    Market Structure Implications
    The CFTC’s clarification on stablecoins, allowing them as residual interest at a 2% capital charge, could impact market structure by providing a form of regulatory acknowledgment for their use within the derivatives clearing ecosystem. Conversely, the exclusion of crypto assets from uncleared swap margins underscores regulators’ current view of them as unsuitable for that specific collateral pool.

    Why This Matters

    The materials describe a narrow update: The CFTC published a FAQ document (Release No. The guidance could be revised or superseded without a formal rulemaking process.

    Broader Context

    Source materials place the factual news in this context: The FAQs target three types of regulated entities: futures commission merchants (FCMs), derivatives clearing organizations (DCOs), and swap dealers. These are the plumbing of the derivatives market, the firms that clear trades, hold customer funds, and manage counterparty risk.

    Contextualizing the Guidance

    The FAQs target three types of regulated entities: futures commission merchants (FCMs), derivatives clearing organizations (DCOs), and swap dealers. These are the plumbing of the derivatives market, the firms that clear trades, hold customer funds, and manage counterparty risk. The guidance represents the CFTC staff’s current interpretation of existing rules, not new regulation with the force of law. Firms that follow it can expect favorable treatment from examiners, but technically, the guidance could be revised or superseded without a formal rulemaking process.

  • USDT0 Aims for $20M in Transfers Amid Ethereum-Tron Liquidity Surge

    USDT0 Aims for $20M in Transfers Amid Ethereum-Tron Liquidity Surge

    USDT0 Focuses on Ethereum-Tron Corridor for Stablecoin Transfers

    USDT0 is significantly deepening its focus on cross-chain stablecoin infrastructure, with over 80% of its USDT route volume now flowing between the Ethereum and Tron networks. The project announced it is increasing liquidity on this pathway, aiming to support maximum single transactions of $20 million.

    This strategic move is designed to expedite larger transfers and minimize downtime on the routes most frequently utilized by users. According to USDT0, the Ethereum-Tron pathway already accounts for the majority of its overall route volume, underscoring the concentration of activity.

    USDT0’s overarching objective is to facilitate the movement of Tether’s stablecoin and gold assets across all networks. The project’s core proposition centers on interoperability that operates seamlessly in the background, reducing friction and consolidating liquidity across different blockchains.

    The Ethereum-Tron corridor has emerged as the primary area of concentration. The project’s latest update indicates that more than 80% of USDT0’s USDT route volume is exchanged between these two networks. This high concentration provides a clear target for the ongoing liquidity expansion efforts.

    USDT0 has boosted liquidity between Ethereum and Tron with the goal of enabling single transactions of up to $20 million. The stated aim is to facilitate transfers of this magnitude across the route while simultaneously reducing operational downtime. Users can access this transfer service via USDT0’s platform, bypassing the complexities of the underlying liquidity infrastructure.

    The project characterizes this update as delivering larger, improved, and faster transfers on the routes that users rely on most.

    Paolo Ardoino, CEO of Tether, has previously highlighted USDT0 as an example of how stablecoins can leverage efficient technology for global scaling, with practical interoperability engineered to be largely imperceptible to users. The underlying principle is to reduce friction and unify liquidity, thereby expanding USDT’s function as a settlement layer across diverse ecosystems.

    The latest USDT0 update directly applies this approach to the Ethereum-Tron corridor, where the bulk of its USDT route volume is already concentrated. By increasing liquidity to accommodate $20 million transactions, USDT0 is positioning itself to simplify larger cross-chain transfers.