Composite 23Trend 10
USD Stablecoins on Public Blockchains Are Major AML Concern, BIS Warns
Dollar stablecoins risk behaving like fragile investment
funds at the heart of the financial system, the Bank for International
Settlements (BIS) has warned, calling for tighter global coordination on
regulation before the market grows large enough to rival traditional money.
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BIS General Manager Pablo Hernández de Cos said US dollar‑denominated
tokens could have “material consequences” for financial stability and economic policy if their use
expands beyond today’s crypto‑trading
niche.
US Dollar Stablecoins Resemble ETFs
De Cos drew a direct comparison between the largest dollar
stablecoins and exchange‑traded funds (ETFs), pointing to
fees and conditions on primary redemptions and repeated deviations from the one‑to‑one
dollar peg in secondary markets.
He warned that this structure creates a specific contagion
channel because issuers back their tokens with short‑term
government debt and bank deposits, not simple cash balances.
In a period of stress, a rush by holders to cash out could
force issuers to dump Treasury bills and pull funding from banks, amplifying
volatility in key funding markets rather than insulating them.
At the same time, the BIS chief highlighted financial
integrity gaps tied to the use of public, permissionless blockchains and
unhosted wallets.
Read more: Hong Kong Opens Stablecoin Market with First Approvals for HSBC and Anchorpoint
A significant share of stablecoin activity takes place
outside traditional anti‑money‑laundering
and counter‑terrorism financing controls, making the tokens
attractive for illicit use unless authorities harden checks at the on‑
and off‑ramps
linking crypto platforms with the banking system.
De Cos also linked the rise of US dollar‑pegged
tokens to the risk of renewed dollarisation pressures in emerging markets,
where households already use stablecoins as offshore dollar savings and, in
some cases, for domestic payments.
Wider adoption could dilute monetary policy transmission,
undermine local currencies and open new channels to evade capital controls, he
said.
Central Banks in Europe, the UK and Switzerland
In parallel, major jurisdictions are moving ahead with their
own stablecoin regimes, though not yet on fully harmonised terms.
The European Union’s Markets in Crypto‑Assets Regulation (MiCA), upcoming UK rules on fiat‑backed tokens and Switzerland’s new framework for Swiss franc‑linked coins all require full
reserve backing, clear redemption rights and direct supervision of issuers,
while taking different approaches on scope and implementation.
De Cos argued that without closer global alignment, uneven
standards will either fragment markets or push activity into lighter‑touch
centres, undercutting more stringent regimes and leaving cross‑border
risks unresolved.
This article was written by Jared Kirui at www.financemagnates.com.
Composite 23Trend 10
Coinbase Launches UK Crypto Lending Using DeFi Protocol Morpho as Its Backend
Coinbase has launched its crypto-backed lending product for UK customers with the underlying infrastructure provided by the DeFi lending protocol Morpho.
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UK users can now borrow USDC against Bitcoin and Ethereum holdings directly through Coinbase's interface — but the loan itself is processed on-chain, not on Coinbase's balance sheet.
Morpho is the book.
Rather than running a proprietary lending operation — which requires capital allocation, credit risk management, and a balance sheet willing to absorb losses — Coinbase plugs into an existing on-chain liquidity pool.
The result is a product that can scale without the overhead of a traditional lender, and that operates 24/7 with no fixed repayment schedule and algorithmically set rates based on real-time supply and demand.
$2.17 Billion in the U.S. Since January 2025
has been live in the United States since January 2025. U.S. loan originations through the Coinbase-Morpho integration have crossed $2.17 billion.
That figure establishes the product as more than a pilot — it is now a meaningful revenue line being carried into new markets.
The expansion model is notable for its simplicity.
Coinbase does not need to rebuild a lending operation from scratch in each new jurisdiction. It connects its regulated, local-facing product to the same permissionless DeFi infrastructure. Market entry becomes a compliance and distribution problem, not an infrastructure one.
For firms that provide margin lending or leveraged products to retail clients, the comparison is uncomfortable. Coinbase is offering instant disbursement, no repayment schedule, and rates set by the market rather than a credit committee.
Traditional brokers carry balance sheet risk, operate within fixed settlement windows, and price credit based on internal models that rarely update in real time.
FCA registration and the recent launches of savings products and DEX trading access.
The lending product is the credit layer of that stack.
The structural point is worth stating plainly: a regulated exchange is now using open-source financial infrastructure to offer credit products that most traditional lenders cannot replicate on comparable terms. That gap will not close quickly.
This article was written by Tanya Chepkova at www.financemagnates.com.
Composite 23Trend 10
Gold and Oil Drive Record TradFi Volumes Across Crypto Exchanges
Gold has
taken over retail futures trading on crypto exchanges in 2026, and fresh
quarterly data from MEXC shows the flow has only become more concentrated. The
Seychelles-based exchange said its tokenized gold product XAUT alone accounted
for 71% of combined volume among its top 10 TradFi Futures in the first
quarter, with silver adding another 22%.
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Together,
the two instruments absorbed 93% of top 10 activity between January and March,
according to the company's Q1 TradFi report published today (Wednesday).
Gold Captures Over a
Quarter of Global Crypto Futures Volume
MEXC said its gold futures reached a 27.4% share of
the crypto futures market for the category in Q1, ranking second industry-wide
by its own measurement. In February alone the figure climbed to 30.3%,
narrowing the gap with the top-ranked platform to four percentage points.
Silver sat
at 14.6% for the quarter, with a month-over-month gain of more than six
percentage points in March, the fastest acceleration among comparable venues
the company identified. Paxos-issued PAXG placed fifth in the top 10.
"Gold
and oil volatility created a window of opportunity and lucrative entry points
for those who are prepared," MEXC chief operating officer, Vugar Usi Zade,
commented.
"We
positioned ourselves ahead of the curve with the right instruments, deep
liquidity ready to execute large orders, and a frictionless fee model.”
Total
TradFi volume surged 138% in February from the previous month and gained
another 45% in March, MEXC said. Monthly active traders grew a cumulative 58%
over the quarter. The exchange's own rankings and methodology have not been
independently audited.
Bullion's Rally Keeps
Pulling Retail Flow In
Safe-haven
demand set the backdrop for the quarter. Gold broke above $5,000 per ounce for
the first time in January and reached $5,595 on January 29, before a sharp two-day correction wiped out
close to $1,200.
A Reuters
poll of 30 analysts in February pegged the median 2026 gold forecast at
$4,746.50 per troy ounce, the highest consensus in the poll's history going
back to 2012. Major banks including Goldman Sachs, JPMorgan and Wells Fargo
hold year-end targets between $5,400 and $6,300.
Silver
followed a similar pattern, hitting a lifetime high of $121.64 on January 29
before retreating toward $90. CME
Group shifted gold, silver, platinum and palladium futures margins from
fixed amounts to percentage-based requirements in early January to cope with
the volatility, while liquidity providers adjusted spreads across the board.
Crude oil
also caught a bid as tensions in the Middle East escalated through late
February and March. MEXC said its largest single day of Q1 volume came on March
3.
Crypto Platforms Race to
Capture Commodity Flow
The MEXC
numbers fit a broader pattern that has defined the first quarter across the
digital-asset industry. Binance launched round-the-clock perpetual
contracts on gold and silver in early January, with gold listed on January 5 and silver on
January 7, both settling in USDT.
BingX
rolled out its own TradFi Futures product days later and reported that gold contracts alone
were generating more than $500 million a day, roughly half of its $1 billion daily TradFi
volume when bullion pushed through $4,722 in mid-January. Bitget ran a similar
multi-asset suite out of private beta during the same window.
The trend
extends to institutional venues. LMAX Group added gold to its
perpetual futures platform in mid-February, citing institutional demand for weekend and
round-the-clock exposure, and GCEX rolled out gold futures aimed at CFD desks
around the same time. Not every major exchange is playing along.
OKX said in late January it was monitoring the rush but did
not plan to follow rivals into real-world asset trading, preferring to focus on
crypto infrastructure.
The product
structure on these crypto venues resembles contracts-for-difference more
closely than regulated exchange-traded futures, and the regulatory perimeter
varies sharply by jurisdiction.
In a recent interview with FinanceMagnates.com, Zade said the traditional
separation between CFD and crypto trading had started to feel like "an
unnecessary distance," a view the Q1 numbers now appear to underscore.
Q1 2026 Market Share: MEXC
TradFi Futures
Source:
MEXC Q1 2026 TradFi Report. Figures reflect MEXC's own measurement and have not
been independently verified.
Liquidity Claims Rest on
MEXC's Own Depth Test
MEXC also
reported ranking first among seven major crypto platforms for gold order book
depth at the top five price levels, in a live snapshot taken on March 23. The
platforms tested were BingX, Binance, Hyperliquid, Bitget, Bybit and OKX
alongside MEXC itself, with three venues covered for crude oil. MEXC said its
gold depth at the top of book was 7.2 times the median of competing platforms.
In a
standardized 100,000 USDT market-order test conducted on the same date, MEXC
said its gold slippage came in 43% below the industry median, silver 66% below,
WTI 25% below and Brent more than 54% below.
The
methodology and raw order book data have not been audited by a third party,
though MEXC said the figures are verifiable on each venue in real time.
The
exchange said the number of available TradFi instruments grew 62%
quarter-over-quarter, and that its wider user base now exceeds 40 million
across more than 170 markets.
The
company's operating perimeter remains a live issue in several jurisdictions,
including Hong Kong, where the Securities and Futures Commission previously
issued a public warning about the platform.
This article was written by Damian Chmiel at www.financemagnates.com.
Composite 23Trend 10
New York Targets Coinbase and Gemini Over Prediction Markets, Seeks Profit Forfeiture and Triple Penalties
New York Attorney General Letitia James has filed suit against Coinbase and Gemini, accusing both companies of running illegal gambling operations through their prediction market platforms.
The lawsuit, filed in Manhattan, seeks to bar the exchanges from offering prediction markets in New York until they hold state gaming licenses — and frames the products not as financial instruments but as unregulated wagering.
.@Gemini and @coinbase's so-called prediction markets are just illegal gambling operations that expose young people to addictive platforms.Gambling by another name is still gambling. I'm suing to stop these platforms from breaking the law.https://t.co/DosDKe2un1
— NY AG James (@NewYorkStateAG) April 21, 2026
A Direct Challenge to the CFTC
The suit is an explicit challenge to federal authority. The CFTC has asserted exclusive jurisdiction over prediction markets, treating event contracts as commodity derivatives. New York is ignoring that framing entirely and applying state gaming law directly.
fighting New York, Massachusetts, and Michigan in court over the same issue. Coinbase has preemptively sued Connecticut and Illinois to block state-level oversight of its prediction business.
The CFTC itself has sued Arizona to stop the state from policing these markets.
The New York action adds two of the most visible publicly listed companies in crypto to that list of defendants — and raises the political and financial stakes considerably.
What New York is Actually After
The lawsuit is partly about money. Licensed sportsbooks in New York pay roughly 51% of gross revenues in tax.Prediction market platforms operating under CFTC classification do not pay into that tax pool.
The state argues this is intentional, saying the “financial instrument” framing is used to avoid the legal and financial consequences of New York gambling law. The lawsuits seek forfeiture of profits, restitution to users, and penalties of up to three times the companies’ alleged gains.
Consumer protection is the other stated concern. The platforms currently allow users from age 18; New York gambling law sets the minimum at 21.
The fundamental question — whether an event contract is a derivative or a bet — is now heading to a New York courtroom.
For any brokerage, exchange, or fintech firm considering entering the U.S. prediction market space, the outcome matters: it will either confirm federal preemption or hand states a usable legal template to block these products regardless of CFTC oversight.
This article was written by Tanya Chepkova at www.financemagnates.com.
Composite 23Trend 10
Just2Trade Joins MiCA Ranks, but Is the Market Moving Beyond Crypto?
Just2Trade has become the latest Cyprus-based CFD broker to cross the MiCA threshold. Its crypto arm, J2TX, was registered with the Cyprus Securities and Exchange Commission (CySEC) on March 16, joining a small but growing club of fully authorised players.
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The timing is no accident. ESMA has set July 1, 2026, as the cutoff point for the grandfathering period, where firms like J2TX, which operated under previous national frameworks, had to complete the transition to MiCA.
The transition has proved exacting, particularly in Cyprus. In an earlier interview, George Theocharides, Chairman of CySEC, noted that early licensees such as Revolut and eToro underwent “extensive scrutiny”.
Approval, he stressed, would not be rushed: applicants were frequently required to make substantial changes before securing a licence.
Capacity may be part of the story. The small Mediterranean island has been punching above its weight as a CFD and FX hub, so CySEC has had to stretch its resources across a growing supervisory load, which now includes MiCA oversight.
Indeed, in January, Theocharides said the watchdog was looking to add around 30 staff in 2026.
The numbers are telling. ESMA lists ten MiCA licences for Cyprus, placing the island sixth in the EU.
Germany tops the table with 55, though the comparison is flattering: its regulator, BaFin, curtailed the transition period to December 2025, and many of those licences are held by banks focused on custody and administration rather than trading.
Converging Markets, Diverging Players?
The line between derivatives and crypto has been blurring for some time, opening up a potent new growth vector.
Brokers, once confined to CFDs, are building crypto exchanges or plugging them in. Crypto exchanges, for their part, are heading the other way, snapping up MiFID licences.
But convergence has not meant convergence in pace.
Even as many brokers are still finding their footing in crypto, others are already looking beyond it. Robinhood was among the first to spot the next seam, embedding prediction markets – event-driven contracts – into its core app in 2025.
Robinhood Prediction Markets just crossed 4 billion event contracts traded all-time, with over 2 billion in Q3 alone. And we’re just getting started. pic.twitter.com/13LxjqWaNt
— Vlad Tenev (@vladtenev) September 29, 2025
Robinhood CEO Vlad Tenev hailed it as the fastest-growing business line in the firm’s history, with the product line tracking toward more than a US$300 million run rate within its first year.
So, is moving into crypto, with all the tooling and strategic overhaul it entails, already yesterday’s problem?
This article was written by Adonis Adoni at www.financemagnates.com.
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FCA Conducts First Coordinated Raids on Illegal P2P Crypto Trading in the UK
The UK’s Financial Conduct Authority (FCA) carried out its first coordinated raids against illegal peer-to-peer crypto trading, working with HMRC and a regional organised crime unit.
Authorities issued on-site cease-and-desist letters at each location. The FCA confirmed that the evidence gathered is now supporting multiple ongoing criminal investigations.
A Market Outside the Regulatory Perimeter
The FCA stated that there are currently no registered peer-to-peer crypto traders or platforms operating in the UK, which means every P2P operation in the country is, by definition, illegal.
It was an operation against an entire business model that sits outside the regulatory perimeter rather than a crackdown on outliers within a regulated sector.
An Enforcement Model, Not a One-Off Raid
The presence of an organised crime unit and HMRC signals what the FCA considers the core risk: money laundering. The UK government's National Risk Assessment has flagged crypto assets as an increasingly common channel for moving illicit funds, and law enforcement framed the operation accordingly.
HMRC we are able to effectively target and disrupt unregistered peer-to-peer crypto traders," said DI Ross Flay of the SWROCU. "As law enforcement, we want to stop these traders providing a route for criminals to move, disguise, and spend illegal money."
illegal crypto ATM network and supported arrests in an unauthorized exchange case. But the multi-agency raid format is new, and suggests the enforcement model is shifting from reactive prosecution toward active, coordinated disruption.
For any firm facilitating crypto activity in the UK, the message is straightforward: FCA registration is a necessary prerequisite to operate legally under the current regulatory framework.
This article was written by Tanya Chepkova at www.financemagnates.com.
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EU Regulators Advance Third-Party ICT Oversight Under DORA and Reiterate Crypto Warnings
EU Supervisory Authorities highlight cyber resilience, crypto risks and
regulatory simplification in 2025 annual report. The report has indirect
relevance for retail trading and CFD markets through its focus on consumer
protection, crypto-asset risks and PRIIPs rules.
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It does not introduce new CFD or leveraged trading measures, but
continues emphasis on disclosure standards, fraud prevention and supervisory
convergence across EU retail markets.
EU
Supervisors Expand Cyber and DORA
The Joint Committee of the European Supervisory Authorities said it
maintained a central coordinating role in 2025 with the European Commission and
the European Systemic Risk Board. Chaired by EIOPA, it focused on EU-wide
supervisory coordination.
The report covered consumer protection, financial stability and
supervisory cooperation. It said 2025 was shaped by geopolitical uncertainty,
faster digitalisation and financial innovation. The ESAs said they aimed to
keep “regulatory frameworks robust, proportionate, and forward-looking”.
A key focus was the Digital Operational Resilience Act. The ESAs said
they delivered all required legal instruments and issued guidance ahead of the
17 January 2025 application date. They also designated 19 critical third-party
ICT providers between April and November 2025, with the European Banking
Authority acting as lead overseer.
EU
Supervisors Launch CITE and Review
New cyber coordination tools were introduced, including the Cyber
Incident Information Sharing and Threat Intelligence Exchange. The ESAs said
these measures “constitute a comprehensive and coordinated effort to bolster
the EU’s resilience to ICT-related risks”.
The Digital Operational Resilience Act (DORA) requires verification for everything running in your infrastructure. Here's how supported open source and reliable security maintenance help you meet this requirement.Learn more: https://t.co/62Fbv7YEtf#DORA #Compliance pic.twitter.com/c6GXXZ00VG
— Canonical (@Canonical) January 28, 2026
On regulation, the committee supported EU efforts to simplify financial
rules, including PRIIPs Key Information Document work and SFDR reporting
adjustments, including deprioritising one annual report. It said simplification
must not weaken financial stability or consumer protection.
ESAs
Highlight Risks Across Financial System
In its risk assessment, the ESAs said geopolitical tensions, trade
restrictions and global conflicts increased uncertainty and market volatility.
They warned institutions should remain vigilant, saying “strengthening risk
management practices, enhancing resilience to cyber threats, and ensuring
preparedness for market shocks are essential”.
The report also flagged risks from cyber threats, ICT third-party
concentration, digital assets and non-bank finance. Crypto risks were
highlighted, with warnings on limited legal protection depending on asset type.
Consumer protection remained a priority. The ESAs updated PRIIPs guidance
and reported 12 administrative sanctions across Belgium, Denmark, Hungary and
Poland. They also issued warnings on crypto fraud and AI-driven scams.
Other initiatives included ESAP development, AMLA cooperation, BigTech
monitoring, securitisation review and a supervisory data exchange system. The ESAs said geopolitical risks, cyber threats and structural market
shifts remain key financial stability concerns.
This article was written by Tareq Sikder at www.financemagnates.com.
Composite 23Trend 10
Stablecoin Payments to Reach $5 Trillion by 2035 as 85% of Value Comes From B2B Use
A new report by
Juniper Research estimates that stablecoin-based B2B payments will reach $5
trillion by 2035, rising from $13.4 billion in 2026.
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The report identifies cross-border business payments as the
main driver of stablecoin adoption. Juniper estimates that 85% of total
stablecoin transaction value in 2035 will come from B2B use cases.
B2B Transactions Drive Growth
Companies increasingly use stablecoins for treasury
operations, supplier payments, and supply chain settlements. These transactions
benefit from faster processing and continuous availability compared to
traditional banking systems.
Stablecoins also support other use cases such as
peer-to-peer and consumer payments, but their role in corporate finance is
expanding more rapidly. The shift reflects a broader move away from speculative
crypto activity toward practical financial applications.
Juniper highlights inefficiencies in correspondent banking
as a key factor behind this growth. Traditional cross-border payments often
involve multiple intermediaries, which increase costs and extend settlement
times.
Read more: USD Stablecoins on Public Blockchains Are Major AML Concern, BIS Warns
These transactions typically include correspondent fees,
foreign exchange margins, and messaging costs. Settlement can also take several
days, depending on the corridor.
Pressure on Traditional Payment Rails
Indeed, stablecoins offer near real-time settlement on blockchain
networks and operate around the clock. This reduces transaction costs and
improves speed, particularly for high-value international transfers.
Dollar-pegged stablecoins also provide a consistent settlement asset across
markets.
"Stablecoins are not replacing payments infrastructure; they are being adopted where the advantages are most pronounced. Cross-border B2B is where those advantages are greatest, and where we expect the most sustained volume growth over the forecast period. Stablecoin issuers and payment service providers should prioritise enterprise integrations and treasury partnerships to capture the majority of this value," Research Analyst Jawad Jahan concluded.
The findings suggest that stablecoins will continue to gain
traction in global finance, especially in areas where traditional systems face
cost and efficiency challenges.
Regulators Step Up USD Stablecoin Scrutiny
The forecast comes as global regulators step up scrutiny of
large dollar stablecoins and their role in the financial system.
In a recent speech covered by Finance Magnates, BIS General
Manager Pablo Hernández de Cos warned that major USD stablecoins could have
“material consequences” for financial stability if their use grows beyond
today’s crypto‑trading niche, comparing their structure to exchange‑traded
funds backed by short‑term government debt and bank deposits rather than
simple cash balances.
He cautioned that, in a period of stress, rapid redemptions
could force issuers to dump Treasuries and pull funding from banks, creating a
new channel for contagion at the heart of key funding markets instead of
insulating them.
At the same time, policymakers in Asia are opening tightly
controlled doors to regulated stablecoin activity, underscored by Hong Kong’s
first licenses for issuers under its new regime. The Hong Kong Monetary
Authority recently approved HSBC and Anchorpoint Financial as the first
licensees, marking the launch phase of a framework that requires fiat‑referenced
stablecoin issuers to hold a license and comply with rules on reserve backing,
redemption rights, governance, and anti‑money laundering controls.
This article was written by Jared Kirui at www.financemagnates.com.
Composite 23Trend 10
Israel Approves First Shekel-Pegged Stablecoin Framework After Two-Year Regulatory Pilot
The Israel Capital
Market Authority has approved a framework for issuing a shekel-pegged digital
currency, BILS. The token will be issued by Bits of Gold, a licensed financial asset
service provider, under regulatory supervision, Y.Net reported.
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BILS is intended for use in liquidity provision, foreign
exchange transactions against major stablecoins such as USDC, smart‑contract
execution, and global shekel transfers. Additionally, Bits of Gold plans to
deepen partnerships with financial institutions and payment providers to
integrate BILS into existing systems.
According to the official communication, the stablecoin
market now exceeds 320 billion dollars in market capitalization, with annual
transaction volumes of approximately 46 trillion dollars.
Stablecoins have also moved
from a crypto-native instrument to infrastructure used in payments and
settlement. Binance Research’s 2025 report puts market
capitalisation above $305 billion and daily transaction volumes at $3.54
trillion. It also highlights high circulation velocity and compares usage
levels with established global payment networks.
Regulator Backs Shekel Digital Issuance
The authority said the
move marks an early stage in a new regulatory phase for digital assets. The
activity will remain limited in scope at the start.
It said the decision
aligns with government policy on digital assets. It also comes ahead of a draft
law on stable digital coins, which will be published for public comment. The approval follows a
process lasting about two years. During this time, Bits of Gold ran a pilot to
test stablecoin issuance under controlled conditions.
Amit Gal, who is in
charge of the authority, said the move supports “technological innovation
alongside maintaining financial stability, protecting the public of customers
and reducing systemic risks.”
Israel Sandbox Tests Shekel Stablecoin
The pilot was carried
out in a regulatory sandbox framework. It was designed to test financial
innovation under supervision while limiting risks to the system and the public.
The regulator reviewed
issuance, custody of client assets, risk management, business continuity,
cybersecurity, and compliance with regulatory standards. The currency will be
fully backed by the Israeli shekel. It will operate at a 1:1 ratio with reserve
assets.
Reserve assets will be
held in Israel in segregated accounts. Liquidity and redemption mechanisms will
be available at all times. The issuer must
maintain reporting obligations, including immediate disclosure of material
changes or exceptional events.
The Capital Market
Authority said it will continue supervising the company after approval, with
ongoing monitoring of compliance with regulatory conditions. Bits of Gold founder
and CEO Yuval Rouach described the token as “the bridge between the shekel and
the new global financial system.”
“The approval represents a milestone not only for our
company, but for the evolution of financial infrastructure. BILS creates a
direct bridge between the Israeli shekel and the global digital assets economy,
enabling real-time payments, on-chain trading and programmable financial
applications based on a regulated local currency.”
Bits of Gold has been operating since 2013 and is licensed
by the Capital Market Authority. It serves over 250,000 registered clients and
previously launched a crypto rewards credit card with MAX.
This article was written by Tareq Sikder at www.financemagnates.com.
Composite 23Trend 10
Kraken Pulls In $200 Million With App-Based DeFi Yield Bet
Kraken’s DeFi Earn product has passed 200 million dollars in
deposits amid a rising demand for onchain yield that users can access from a
regular exchange app. The program lets customers earn dollar-denominated
returns on their balances without moving funds to external wallets or
navigating DeFi protocols directly.
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According to Veda, Kraken DeFi Earn runs on three vaults
provided by Veda. More than 40,000 users now use these vaults through the
Kraken app to earn yield on cash and stablecoins. The product converts deposits
into USDC and allocates them into onchain strategies, while users only see a
simple earn interface inside Kraken.
Kraken Taps Veda’s Multichain Vault Infrastructure
Veda’s technology allows the vaults to connect to multiple
DeFi protocols and blockchains. This structure aims to unlock higher yields
than a single protocol can offer. It also helps Kraken adjust strategies over
time without changing how the product looks or works for users.
In earlier DeFi cycles many products relied on rewards or
airdrops to attract deposits. Kraken instead leans on its existing user base
and an integrated experience. Users can opt into onchain yield from the same
app they already use for trading and custody.
Veda (also known as Veda Labs or Veda Tech) is the DeFi
vault infrastructure provider that powers Kraken's DeFi Earn product. They
supply the underlying technology that manages deposits, strategy execution, and
cross-chain operations for all three Kraken DeFi Earn vaults.
It provides multichain, multiprotocol vault infrastructure
that enables Kraken to offer DeFi yields without requiring users to interact
with blockchain wallets or manage complex DeFi protocols directly.
Read more: Kraken Confirms IPO Filing, but Valuation Dropped 33% in Latest $200M Funding
Kraken has been rolling out and refining DeFi Earn in the
US, Canada and Europe, offering onchain yields through integrated vaults while
keeping the user experience inside the familiar Kraken app, and pairing that
with new security education around scams and safe usage.
Enabling Curated DeFi Strategies
The technology allows Kraken's vaults to operate on the Ink
blockchain (Kraken's Ethereum L2) while simultaneously sourcing yield from
protocols on both Ink and Ethereum. Veda's vaults are programmable and
flexible, meaning they can support any blockchain, deposit asset, or DeFi
protocol.
This allows vault curators (Chaos Labs and Sentora) to
allocate deposits across multiple trusted protocols with precision to generate
passive income for Kraken users. According to Sun Raghupathi, Veda Co-Founder,
the partnership enables Kraken to deliver "a seamless experience"
while tapping into onchain markets that offer higher variable APYs compared to
traditional earning options.
Most recently, Kraken has been in the news for its IPO push,
gaining direct Federal Reserve payments access as a crypto bank, and continuing
to market and expand the DeFi Earn product that your Veda story plugs into.
The
IPO filing and Fed master account have sparked fresh scrutiny of how deeply a
crypto-native institution should be integrated into core U.S. financial
plumbing, but they also strengthen Kraken’s pitch as a regulated, bank-like
venue rather than a pure-play exchange.
This article was written by Jared Kirui at www.financemagnates.com.
Composite 23Trend 10
How Polymarket Users Move From Crypto to Sports And Why It Matters
A new analysis by Bitget Wallet of 1.29 million Polymarket wallets in Q1 2026 shows how prediction market users actually behave: they arrive via crypto and stay for sports.
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The finding has practical implications for brokers and fintech platforms building in this space. The data shows a clear user progression, with distinct products driving acquisition and retention at different stages.
The Entry Point: Crypto
Crypto markets are where most new users start. Among the smallest traders on the platform — those with the lowest activity levels — crypto accounts for nearly 40% of all trading volume. These are markets that retail users already know, available around the clock, with median trade sizes for Bitcoin and Ethereum sitting at $2–$3.
The capital commitment is low enough that the platform itself is essentially a test environment. The broader user base is heavily retail in composition. In Q1, 82.3% of all wallets traded under $10,000 — the growth is coming from volume of participants, not concentration at the top.
This retail-driven entry point contrasts with the growing institutional interest in the sector, suggesting that user acquisition and capital deployment are still driven by different segments.
The Retention Driver: Sports
Crypto pulls users in, but sports keep them. As traders move up in activity levels, their share of crypto trading declines and sports picks up — from 22.7% among lower-volume users to 29.2% among mid-tier ones. In aggregate, sports were the single largest category by trading volume in Q1, generating $10.1 billion.
The NBA and English Premier League are cited specifically — leagues with dense, predictable event schedules that give users a recurring reason to return. The mechanic is not complicated: frequent games create frequent markets, which sustain frequent engagement.
Across the broader market, sports dominate prediction market volume, accounting for roughly 64% of the $75.9 billion tracked by Paradigm's data set, compared with about 13% each for crypto and politics.
Politics and Macro as the Third Layer
Political and geopolitical markets are growing into a distinct category. Political markets generated $5 billion in Q1 volume, with geopolitics accounting for close to half of that.
These markets operate differently from sports. They're news-driven and event-dependent rather than calendar-driven, but they add a layer of engagement for users who treat prediction markets as a way to price real-world uncertainty. Total monthly volume on the platform now exceeds $25 billion.
The pattern may reflect product design as much as user preference — particularly the availability of high-frequency sports markets versus more episodic political or macro events.
For brokers, the strategic question the data raises is whether this user journey is platform-specific to Polymarket or whether it generalizes. The onboarding-through-crypto, retention-through-sports pattern suggests product design as much as market demand — and that's worth examining before assuming the playbook transfers.
This article was written by Tanya Chepkova at www.financemagnates.com.
Composite 23Trend 10
Scammers Target Hong Kong Stablecoin Licences Before First Tokens Go Live
Fraudsters have begun
promoting fake digital tokens linked to two newly licensed stablecoin issuers
in Hong Kong, even though neither firm has launched a product.
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The Hong Kong Monetary
Authority, HSBC, and Anchorpoint Financial issued separate warnings on Tuesday.
They said tokens using the tickers “HKDAP” and “HSBC” have appeared in the
market but are not connected to the licensed entities.
The incident follows Hong
Kong’s approval of its first stablecoin issuer licenses under the HKMA
framework earlier this month, which was introduced in August last year. The
regulator said the approvals marked the first under the regime, with
Anchorpoint Financial and HSBC among the first two entities licensed.
No Regulated
Stablecoins Issued, HKMA Says
The HKMA said both
issuers have confirmed that no regulated stablecoins have been issued to date.
HSBC said it “has not
yet issued any stablecoins in Hong Kong,” adding that its planned Hong Kong
dollar-pegged token will be distributed only through official channels,
including PayMe and the HSBC HK Mobile App, when launched in the second half of
2026.
LATEST: 🏦 Hong Kong’s central bank has warned that tokens using the tickers “HSBC” and “HKDAP” have no association with HSBC or Anchorpoint Financial. pic.twitter.com/siRtYqdQC6
— CoinMarketCap (@CoinMarketCap) April 29, 2026
Regulator Can Suspend Stablecoin Issuers
Anchorpoint Financial
said it has not issued any tokens since receiving its license from the HKMA on
April 10 and has not launched any product under the HKDAP name. It urged users
to “verify information through official sources” and use only regulated channels.
Under the rules,
fiat-referenced stablecoin issuers must be licensed by the HKMA and meet
requirements on reserves, redemption rights, governance, and anti-money
laundering controls. The regulator can impose fines, suspend operations, or
revoke licenses.
This article was written by Tareq Sikder at www.financemagnates.com.
Composite 23Trend 10
First-Ever Prediction Market ETFs Let You Invest in Election Outcomes
A new category of exchange-traded funds will enter the US
market next week, giving investors direct exposure to election outcomes through
regulated products.
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Roundhill Investments plans to launch six ETFs tied to which
party controls the White House and Congress, marking the first time prediction
market strategies appear in ETF form.
Structure and Market Exposure
According to SEC filing, Roundhill’s lineup includes funds
linked to Democrats and Republicans across three branches of power. The
products cover the presidency, Senate, and House, with ticker symbols BLUP,
REDP, BLUS, REDS, BLUH, and REDH. The congressional funds track outcomes of the November 2026
midterm elections, while the presidential funds reference the 2028 race.
The ETFs gain exposure through swap agreements tied to
binary event contracts traded on markets regulated by the Commodity Futures
Trading Commission. These contracts settle at
The prospectus states that if the selected party fails to
win, “the fund will lose substantially all of its value.” The structure creates
a binary payoff profile with limited downside protection.
Read more: Polymarket Grabs Nearly 55% of Prediction Markets as Iran Bets Test CFTC Crackdown
Roundhill does not plan to liquidate the funds after an
outcome is determined. Instead, once markets assign near certainty to a result
for several consecutive days, the funds will roll exposure into the next
election cycle. Midterm funds will shift to 2028 races, while presidential
funds will move to 2032.
Competition and Regulatory Backdrop
Other asset managers have filed similar products. Bitwise
and GraniteShares submitted proposals for six comparable funds earlier this
year. Bitwise plans to terminate its funds shortly after outcomes are decided,
while GraniteShares uses a rolling structure similar to Roundhill.
Prediction contracts already trade on platforms such as
Polymarket and Kalshi, but ETFs could expand access by allowing investors to
hold these exposures in standard brokerage accounts and some retirement plans.
Regulatory uncertainty remains. The Commodity Futures
Trading Commission withdrew a proposal in February that would have banned political event contracts. However, state regulators in jurisdictions including
Massachusetts, New York, and Nevada continue to challenge these contracts in
court.
The CFTC’s latest move is to formally start writing prediction‑market rules instead of handling them case by case. Last month, it published an advance notice asking the public how event‑based contracts, like those tied to elections or economic data, should be regulated, including what types of events should be allowed or restricted.
At the same time, CFTC staff issued guidance to US exchanges that list these contracts, reminding them that prediction markets fall under derivatives law and must meet existing exchange standards.
This article was written by Jared Kirui at www.financemagnates.com.
Composite 23Trend 10
Hyperliquid Challenges Kalshi and Polymarket for a Multi-Billion-Dollar Prediction Market
Hyperliquid, one of the most active decentralised exchanges, may add prediction markets to its platform. This move would put it in direct competition with Kalshi and Polymarket.
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The proposal, known as HIP-4, would let users trade outcome contracts on real-world events alongside Hyperliquid’s existing leveraged perpetual futures. Early versions are already running on testnet, while a mainnet rollout has not yet been scheduled.
Yes for the HIP-4.
— Hyperliquid News (@HyperliquidNews) April 29, 2026
Why Integration Matters Here
For sophisticated traders, that means cross-margining across market types — a feature absent from platforms built around prediction markets as a standalone product.
Hyperliquid also does not need to build an audience for prediction markets. It is distributing the product to an existing and active base of traders.
Movement in Both Directions
Kalshi has announced a perpetual futures product called Timeless. Polymarket is launching 10x leveraged contracts on Bitcoin, Nvidia, and gold.
Each platform is approaching the convergence from a different position.
Kalshi is operating as a CFTC-regulated exchange and is building toward regulatory legitimacy in the U.S. market. Polymarket is leaning on its crypto-native interface and global reach. Hyperliquid is treating prediction market contracts as one more instrument type on a high-throughput derivatives engine.
The competition is shifting from product creativity to infrastructure. Hyperliquid’s model depends on factors it cannot fully control, including oracle reliability, resolution disputes, and retail engagement with event contracts.
Some market participants are skeptical that Hyperliquid will compete directly with Kalshi or Polymarket for retail volume. Its interface and distribution model are geared more toward experienced traders, suggesting that demand may come primarily from users looking to hedge or trade event contracts alongside existing derivatives positions.
Im following @HyperliquidX hip4 prediction markets but imo they will not compete with @Polymarket or @Kalshi for retail volume The hl interface is just miles away from being retail friendly and even with builder codes implementing the markets i see the existing distribution… pic.twitter.com/x9wFPVyq2Z
— James Ross (@jamesrosst) April 28, 2026
Those are unresolved questions, and the $1 trillion annual volume figure cited by proponents for 2030 reflects projections, not a current trajectory.
This article was written by Tanya Chepkova at www.financemagnates.com.
Composite 23Trend 10
FCA Clears Asset Managers to Run Funds Onchain Under Existing Rules
The UK’s Financial Conduct Authority (FCA) has approved new
rules that allow tokenized funds to operate fully within the existing
authorized fund regime, rather than in separate experimental structures.
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The changes give asset managers a clearer route to keep fund
registers on blockchain and to use an optional Direct‑to‑Fund
(D2F) dealing model, while keeping current investor protection standards in
place.
Onchain Fund Registers Under the Blueprint Model
In Policy Statement PS26/7, the FCA confirms that authorized
funds can run their unitholder registers on distributed ledger technology using
the industry “Blueprint” model.
Onchain transaction records may serve as the primary books
and records for unit deals, and firms do not need a full off‑chain
mirror if they maintain appropriate operational resilience plans.
The guidance applies to UCITS and other authorized funds and
allows registers to sit on public DLT networks if firms meet the regulator’s
expectations on governance, data privacy and financial crime controls. Units in a single share class can be recorded across
multiple blockchains as long as investors’ rights and the structure of charges
remain the same.
Direct-to-Fund Dealing Model to Support Tokenization
The main rule change is the introduction of the optional
Direct‑to‑Fund
dealing model, which alters how subscriptions and redemptions are processed.
Under D2F, the fund or its depositary, rather than the asset manager, becomes
the counterparty to investor trades, so units are issued or canceled directly
against cash flows between investors and the fund in a single step.
The FCA says this should make operations more efficient and
easier to align with onchain or shortened settlement cycles. Following industry
feedback, the regulator will still allow managers to deal as principal in units
of a fund using D2F and to combine different dealing models within an umbrella
structure.
Looking ahead, the FCA outlines a roadmap from tokenized
funds to tokenized assets and ultimately tokenized cash flows, including models
where investors hold tokenized assets in digital wallets and managers use smart
contracts to manage portfolios.
Keep reading: “Tokenisation Isn’t About Technology”: Singapore Builds Cross-Border Market Infrastructure
It also signals openness to waivers that would let funds use
digital cash and stablecoins for settlement and certain expenses, ahead of a
broader crypto asset and stablecoin regime due to take effect in October 2027.
The FCA's journey toward approving tokenized funds has been
building since 2023, when it collaborated with industry groups to publish the
UK Blueprint model outlining how firms could run tokenized unitholder registers
within existing legal frameworks.
Running parallel to this tokenization roadmap, the FCA has
been developing a comprehensive crypto asset regulatory regime that began with
legislation passed in February 2026. It launched a sterling stablecoin sandbox in
March 2026, and will open firm authorization applications in September ahead of the full regime taking effect next year.
This article was written by Jared Kirui at www.financemagnates.com.
Composite 23Trend 10
DeFi’s Next Chapter: Breaking the Loop of Speculation, Leverage, and Inflated Yields
The promise of decentralized finance was once a clarion call
for a democratic financial revolution. It envisioned a world where the rigid,
exclusionary walls of traditional banking would be replaced by transparent,
automated, permissionless systems. As we move through 2026, that early optimism
has given way to a more sober reality.
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While the technology remains
powerful, the economic foundations of most DeFi lending protocols are still
structurally weak. Much of the system operates on reflexivity, where value is
borrowed from the future to support the present. Without a shift from internal
speculation toward external utility, the ecosystem risks long-term irrelevance.
Recursive Lending Without Productive Output
At the core of the problem is the circular nature of DeFi
lending. In traditional finance, loans fund productive activity that generates
real economic output. In DeFi, lending is largely recursive. Users deposit
volatile assets, borrow stablecoins, and
often recycle them back into the same assets.
This creates leverage loops that
function in bull markets but produce no real economic surplus. Yield is driven
not by productivity, but by demand for leverage among speculators, making the
system heavily dependent on rising asset prices.
Inflationary Tokens Attract Mercenary Liquidity
This fragility is reinforced by inflationary tokenomics.
Many protocols rely on liquidity mining incentives paid in governance tokens to
attract capital. This creates mercenary liquidity that
constantly chases the highest yield.
These tokens often have limited real
utility, meaning their value depends heavily on future buyers. When prices
fall, yields collapse, liquidity exits, and protocols can spiral quickly. The
collapse of Iron Finance in 2021 illustrated this dynamic clearly, as its
partially collateralized stablecoin system broke down rapidly once confidence
eroded.
Over-Collateralization Limits Real Access
Capital inefficiency is another structural flaw. Traditional
banking extends credit based on trust and repayment history, while DeFi is overwhelmingly
over-collateralized. Borrowers must lock up more value than they receive, often
making the system unusable for those who actually need capital.
A small
business in an emerging market cannot access DeFi credit if it requires holding
150% collateral in volatile crypto assets. As a
result, the system favors capital-rich speculators rather than real economic
participants.
Automated Liquidations Amplify Market Stress
Systemic risk is further amplified by liquidation cascades.
Smart contracts automatically liquidate positions when collateral falls below
thresholds. In volatile markets, these forced sales push prices lower,
triggering further liquidations in a feedback loop.
The collapse of the
Terra/Luna ecosystem in 2022 showed how quickly this can escalate. Anchor
Protocol’s unsustainable yield attracted massive inflows, but once the
stablecoin peg failed, cascading liquidations wiped out tens of billions and
spread contagion across the broader market.
Real World Assets Stabilize Yield Base
To become sustainable, DeFi must integrate real-world
assets. Closed-loop crypto economies cannot sustain themselves indefinitely.
Lending protocols need exposure to external sources of yield such as government
debt, trade finance, and private credit.
MakerDAO, now rebranded as Sky
Protocol, has already moved heavily into U.S. Treasuries and private credit,
creating more stable income streams during downturns. This shifts protocols
closer to blockchain-based investment structures, though concerns remain that
much of the value still depends on off-chain systems rather than fully on-chain
economic logic.
Credit Systems Replace Collateral Dependence
Another key evolution is decentralized identity and on-chain
credit scoring. Moving beyond over-collateralized lending is essential for real
adoption. Zero-knowledge proofs allow borrowers to demonstrate creditworthiness
without revealing sensitive data, enabling risk assessment based on financial
history rather than collateral alone.
DeFi is inevitable, but only if it can support the existing financial system.Real-world assets are giving the industry the chance it needs to find its footing in traditional market structure. https://t.co/XP6NjHEu0Q
— Plume (@plumenetwork) April 29, 2026
This could eventually allow DeFi to
extend credit to real businesses in emerging markets, bringing productive
activity onto the blockchain instead of purely speculative flows.
Modular Design Reduces Systemic Contagion
Protocol design also needs to become more modular. Early
DeFi systems relied on shared liquidity pools, which are highly vulnerable to
contagion. Newer models are introducing isolated markets where failures are
contained rather than spreading across the entire system. Aave has already
taken steps in this direction with isolation modes and risk segmentation.
Combined with better insurance mechanisms and improved smart contract security,
these changes could make DeFi more resilient and attractive to institutional
capital.
Speculative Culture Undermines Stability
We must also recognize that sustainability is as much about
human behavior as it is about code. The culture of "get rich quick"
schemes and astronomical annual percentage yields must be replaced by a culture
of risk-adjusted returns and long-term value creation.
Regulatory clarity will
play a vital role here. While some in the crypto space fear
oversight, a clear legal framework provides the certainty needed for legitimate
businesses to build on-chain. When investors can distinguish between a
high-risk speculative play and a regulated, asset-backed lending product, the
market will naturally gravitate toward the more sustainable options.
Meanwhile, watch out for the falling yields. Do not be
caught by surprise.
This article was written by Anndy Lian at www.financemagnates.com.
Composite 23Trend 10
Australia's Digital Asset License Deadline Nears with 10% Turnover Penalty Looming
The
Australian Securities and Investments Commission (ASIC) has reminded digital
asset firms that they have less than two months to lodge an Australian
Financial Services (AFS) license application or risk falling foul of the
country's financial services laws.
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The Clock Is Ticking on
Australia's Crypto License Sweep
The
regulator said today (Monday) that providers offering services tied to digital
asset financial products must decide whether they need a new AFS license, or a
variation to an existing one, and apply by June 30, 2026. After that date,
ASIC's sector-wide no-action position falls away, exposing unlicensed firms to
civil and criminal penalties that can reach up to 10% of annual turnover.
Companies
seeking an Australian Market Licence or a Clearing and Settlement facility license
face an additional step. They must notify ASIC in writing of their intention to
apply and hold a pre-application meeting before the same June 30 deadline.
ASIC's Information Sheet 225, refreshed
last year, now
classifies stablecoins, wrapped tokens, tokenised securities and digital asset
wallets as financial products under the Corporations Act.
That
definition pulls a much wider slice of the local crypto industry into the AFS
licensing perimeter than the previous interpretation, which centered on
platforms trading conventional digital tokens.
What the No-Action Window
Actually Buys
The
no-action letter, published in October 2025, gave providers a runway to digest
the updated guidance and either apply for fresh authorizations or vary existing
ones.
ASIC has
said the position is not a safe harbor against private litigation or non-ASIC
enforcement, and it expires for everyone on the same date.
Some firms
can comply by becoming an authorized representative of an existing AFS licensee
rather than securing their own license, depending on the services they provide.
ASIC has
also kept in place earlier relief instruments covering the distribution of certain stablecoins
and wrapped tokens.
Those carve-outs currently apply to a single issuer, Catena Digital, which
issues the AUDM stablecoin.
The
licensing pipeline has already started to swell. ASIC granted 290 new AFS licenses in the financial year to June 2025
while cancelling or suspending 215 others, with applications from digital asset
operators rising notably, Commissioner Alan Kirkland said at the time.
How Australia's Approach
Compares to Global Peers
Australia
is moving toward a destination several other major jurisdictions have already
reached, though by a different route.
The
European Union's Markets in Crypto-Assets regulation took full effect in
December 2024, requiring exchanges, wallet providers and stablecoin issuers to
obtain a MiCA license to operate across the bloc.
Penalties for non-compliance under MiCA can reach 12.5% of annual turnover,
slightly above Australia's threshold.
In Asia,
Hong Kong opened its stablecoin licensing regime in April and granted its first
approvals to HSBC and Anchorpoint. Japan moved its crypto sector under the
Financial Instruments and Exchange Act earlier this year and banned insider
trading in digital assets.
Singapore
continues to license payment service providers under its 2019 Payment Services
Act.
Enforcement Track Record
Adds Pressure
Recent
enforcement gives the deadline real teeth. The Federal Court of Australia fined Binance Australia Derivatives
AU$10 million in March after the company admitted misclassifying more than 85% of its local
clients.
In December
2024, Bit Trade, the local operator of
Kraken, paid AU$8
million over a leveraged margin extension product the court found breached
design and distribution obligations.
ASIC has
also flagged offshore venues offering high-leverage products to Australians,
including a public warning against Bitget over its 125x crypto futures. The
regulator has signalled that the same scrutiny will follow firms that miss the
AFS license window.
A Second Deadline Comes in
2027
The June 30
cutoff is not the end of the road. The Corporations Amendment (Digital Assets
Framework) Act 2026, which cleared parliament on April 1, received Royal Assent on April 8
and commences April 9, 2027. It introduces dedicated authorizations for digital
asset platforms and tokenized custody platforms, both supervised by ASIC.
Many firms
that secure an AFS license under the current INFO 225 guidance will need to add
DAP or TCP authorizations once the new regime starts. ASIC has published a
roadmap covering its consultation timetable and the operational standards it
expects to set during the 18-month implementation period.
"Licensing
firms improves investor protections and provides greater certainty to providers
to operate under the law," ASIC said in its statement.
This article was written by Damian Chmiel at www.financemagnates.com.
Composite 23Trend 10
Bitget Wallet: Prediction Markets Will Consolidate in Liquidity but Spread in Access
Prediction markets are increasingly being built on a small number of liquid venues, but accessed through a growing number of interfaces. Wallets, exchanges, and fintech apps are emerging as the main entry points, shifting competition toward distribution and user experience.
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According to Alvin Kan, this split between liquidity and access may define the next phase of the sector. Platforms like Bitget are focusing on access and usability, rather than building their own markets. The assumption is that adoption will depend more on how markets are accessed than where they are hosted.
When Liquidity Meets Accessibility and User Experience
The difference between using a native platform like Polymarket and accessing markets through a wallet lies in how users access and interpret them, Kan explains.
“Platforms like Polymarket are effective at liquidity and price discovery, but they typically require users to navigate multiple steps and interpret raw probabilities independently. Bitget Wallet adds a layer focused on accessibility and usability,” he says.
From an access standpoint, users can move from funding to execution within a single mobile interface, aiming to reduce friction. From an interpretation standpoint, AI-assisted analysis helps aggregate data, news, and on-chain signals into more structured insights. Kan describes this as a shift in the category, from building markets to making them easier to access and understand at scale.
Integrations vs. Building Its Own Markets
Rather than launching its own prediction market, Bitget Wallet chose to integrate with existing infrastructure, as what appears to matter most to users is access to deep, liquid, and diverse markets, Kan explains.
“Building a prediction market from scratch requires significant time to bootstrap liquidity, and without that, pricing and participation tend to remain limited. Integrating with an established platform like Polymarket allows access to meaningful markets from the outset,” he says.
However, this approach relies on external infrastructure for liquidity and market structure, limiting control over areas such as listings and monetisation.
According to Kan, this trade-off is a deliberate choice, as the wallet focuses on improving access, usability, and distribution rather than rebuilding the market layer.
How to Simplify the Complexity
Prediction markets require users to understand probabilities, outcomes, and risk, which can be difficult without earlier experience. Within a wallet, this is combined with additional steps such as funding, transaction signing, and position management. According to Kan, making a complex product accessible is a main challenge.
“The goal is to simplify this into a single, coherent user journey, from discovering markets to understanding them, to executing trades,” he says. “At the same time, it is critical to maintain clarity around risk and outcomes, so simplification does not come at the expense of transparency.”
Compliance Tied to the Access Layer
Kan points out that access is managed based on local regulatory requirements. This means that certain jurisdictions may have restrictions on prediction market participation.
“As a self-custodial wallet, Bitget Wallet does not custody user assets or operate the underlying markets. Instead, it provides access to on-chain protocols while ensuring users are informed of applicable limitations and are expected to comply with local regulations.”
This is consistent with a broader Web3 model, where infrastructure and interface layers are distinct, but compliance considerations remain relevant at the point of access.
Where Users Will Access Prediction Markets Over Time
Kan expects a hybrid model to emerge. “Dedicated platforms like Polymarket will remain central to liquidity and price discovery, particularly for more active or experienced users,” he says.
However, broader adoption is likely to come through more familiar environments such as wallets and exchanges. Users are less likely to navigate separate platforms for each interaction and more likely to engage through environments where their assets are already held.
“Over time, we expect liquidity to concentrate, while access becomes more distributed. Wallets are well-positioned to serve as that entry point, making prediction markets more accessible without changing where the underlying markets operate.”
This article was written by Tanya Chepkova at www.financemagnates.com.
Composite 23Trend 10
Coinbase Cuts 14% of Staff as AI and Crypto Downturn Reshape Its Operating Model
Coinbase will reduce its global headcount by about 14%, or roughly 700
roles, as the US-listed crypto exchange streamlines operations and reorganises
parts of its business around artificial intelligence and leaner teams.
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The move extends a broader restructuring cycle across the crypto sector
that began
after the 2022 market downturn, with exchanges repeatedly adjusting
staffing levels in response to weaker trading activity and volatile revenue
conditions.
Coinbase
Flattens Structure, Cuts Jobs Amid AI
In an internal message to employees, CEO Brian Armstrong said the
decision reflects both market conditions and shifts in how work is being
executed inside the company. He cited “continued weakness in parts of the
crypto market” and “rapid advances in AI tools that are materially changing how
work is executed”.
Armstrong said Coinbase is increasingly using AI tools to accelerate
development and reduce coordination across teams, with plans to move toward
smaller, more autonomous “AI-native” groups supported by automation.
This is an email I sent earlier today to all employees at Coinbase:Team,Today I’ve made the difficult decision to reduce the size of Coinbase by ~14%. I want to walk you through why we're doing this now, what it means for those affected, and how this positions us for the…
— Brian Armstrong (@brian_armstrong) May 5, 2026
The company also plans to flatten its management structure, limiting
organisational depth to five layers below the CEO and COO in an effort to
reduce complexity and speed up decision-making. Managers will take a more
hands-on role in execution, a model Armstrong described as “player-coaches”.
Crypto
Sector Faces Lower Growth Phase
Coinbase said the changes are intended to improve efficiency and reduce
organisational friction, while also reflecting a broader trend across
technology firms of reassessing multi-layer management structures in
engineering-heavy organisations.
Alongside the structural changes, the company pointed to ongoing market
pressure. Crypto trading volumes have remained uneven following recent
volatility, weighing on exchange activity and revenue. It said the layoffs are
not driven by immediate financial distress but reflect longer-term alignment
between costs and expected market conditions.
This article was written by Tareq Sikder at www.financemagnates.com.
Composite 23Trend 10
Retail Traders Get Crypto Access as Morgan Stanley Follows SoFi in Trading Push
Morgan Stanley has
begun piloting direct cryptocurrency trading on its E*Trade platform, charging
around 50 basis points per transaction, according to a Bloomberg report.
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Charles Schwab has
begun rolling out plans for spot cryptocurrency trading for retail clients.
SoFi
Technologies resumed crypto trading after regulatory changes. Several
firms, including
Morgan Stanley and PNC Financial Services, have also been exploring or
developing crypto offerings. The moves reflect wider expansion in retail access
to digital assets.
Retail Crypto Fees Under Competitive
Pressure
At Morgan Stanley, the
service is currently available to a limited group of users. A broader rollout
is expected later in 2026. It is planned to reach about 8.6 million E*Trade
clients.
The pricing places
Morgan Stanley below several competitors in retail crypto trading. Coinbase
charges can exceed 0.5%, depending on user tier and payment method. Robinhood
offers commission-free trading but generates revenue through spreads, typically
between 35 and 95 basis points. Charles Schwab charges around 75 basis points
for Bitcoin and Ether transactions.
LATEST: 🏦 Morgan Stanley has begun piloting crypto trading via E*Trade with lower fees than than Coinbase, Robinhood, and Schwab, according to Bloomberg. pic.twitter.com/rVXopGkBw2
— CoinMarketCap (@CoinMarketCap) May 6, 2026
E*Trade Gives Access to Retail Crypto
The pilot follows
earlier plans disclosed in 2025 to bring crypto trading to E*Trade. It
indicates the bank has moved from planning into execution.
The service also gives
Morgan Stanley access to its existing retail client base through E*Trade. This
provides a distribution channel that crypto-native exchanges do not have.
Competition in retail crypto trading is increasing, with pricing emerging as a
key factor as traditional brokers expand further into the market.
This article was written by Tareq Sikder at www.financemagnates.com.
