The cross-border e-commerce arm of Chinese tech behemoth Alibaba is working on a deposit token amid mainland China’s crackdown on stablecoins, according to CNBC.
Alibaba president Kuo Zhang told CNBC in a Friday report that the tech giant plans to use stablecoin-like technology to streamline overseas transactions. The model under consideration is a deposit token, which is a blockchain-based instrument that represents a direct claim on commercial bank deposits and is treated as a regulated liability of the issuing bank.
Traditional stablecoins, which these tokens closely resemble, are issued by a private entity and backed by assets to maintain their value. The report follows JPMorgan Chase — the world’s biggest bank by market capitalization — reportedly rolling out its deposit token to institutional clients earlier this week.
The news also follows reports that Chinese technology giants, including Ant Group and JD.com, suspended plans to issue stablecoins in Hong Kong after regulators in Beijing expressed displeasure with the plans. The report was just the latest of many suggesting that mainland Chinese authorities appear dead set on preventing a stablecoin industry from arising in the country.
In July, both Ant Group and JD expressed interest in participating in Hong Kong’s pilot stablecoin program or launching tokenized financial products, such as digital bonds. Similarly, HSBC and the world’s largest bank by total assets — the Industrial and Commercial Bank of China — were reported to share these Hong Kong stablecoin ambitions in early September.
Later in September, a now-removed report by Chinese financial outlet Caixin claimed that Chinese firms operating in Hong Kong may be forced to withdraw from cryptocurrency-related activities. According to the report, policymakers would also impose restrictions on mainland companies’ investments in crypto and cryptocurrency exchanges.
In early August, Chinese authorities reportedly instructed local firms to cease publishing research and holding seminars related to stablecoins, citing concerns that stablecoins could be exploited as a tool for fraudulent activities. Still, China is not entirely devoid of stablecoin ties.
In late July, Chinese blockchain Conflux announced a third version of its public network and introduced a new stablecoin backed by offshore Chinese yuan. Still, the stablecoin aims to serve offshore Chinese entities and countries involved in China’s Belt and Road Initiative, not the mainland.
In late September, a regulated stablecoin tied to the international version of the Chinese yuan launched. Still, this product was also intended for foreign exchange markets and was launched at the Belt and Road Summit in Hong Kong, signalling a similar target market.
A recent analysis suggested that we should not expect Chinese stablecoins to be allowed to circulate in the mainland. Joshua Chu, co-chair of the Hong Kong Web3 Association, said, “China is unlikely to issue stablecoins onshore.”
Opinion by: Lennix Lai, global chief commercial officer of OKX
More than three years after FTX’s collapse, the crypto industry must not forget that trust in our system depends on verifiable transparency. Arguably, that lesson matters more now than ever as we experience a period of volatility.
The idea behind proof of reserves (PoR) is simple yet powerful. Through transparent, onchain audits, exchanges can demonstrate that every customer balance is backed one-to-one by assets held in reserve. In the aftermath of FTX, PoR became a lifeline — a tangible way to prove that the industry was taking real steps to overcome its “Wild West” reputation.
As the market remains relatively optimistic, we have a real opportunity to make transparency the industry standard rather than the exception. Independent market analyses show that while a handful of major exchanges continue to publish monthly PoR attestations, others vary in cadence or omit such disclosures entirely. History reminds us that bull markets have a way of testing our discipline — this is our moment to prove that crypto has moved beyond its “Wild West” origins.
The “flash crash” in October, which wiped out nearly $20 billion in leveraged positions, highlighted both the risks inherent in crypto and the resilience of transparent systems. The drop in open interest across perpetual decentralized exchanges told the story of leverage getting wiped out.
Source: DefiLlama
When prices spike and liquidity floods the market, discipline tends to give way to euphoria. Yet the lesson of 2022 remains unchanged: Transparency cannot be seasonal or optional. It must be constant, verifiable and built into the core of how the crypto industry operates.
Three years post-FTX, coincides with the third anniversary of PoR programs at major exchanges, which launched monthly attestations in response to the crisis. These attestations collectively account for tens of billions of dollars in customer assets, with overcollateralization across the most highly traded cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Tether’s USDt (USDT) and USDC (USDC).
Yet public attention to PoR remains inconsistent. Recent data shows that while public interest in PoR is fading from daily conversation, it resurfaces whenever transparency becomes a systemic concern. Google Trends recorded a brief spike in searches for “Proof of Reserves” in August 2025, surpassing even the first major surge post-FTX collapse.
That renewed attention coincided with major policy milestones centered on solvency and disclosure, including the CLARITY and GENIUS Acts passed in July 2025. These laws introduced one-to-one reserve-backing requirements for payment stablecoins and mandated monthly audited attestations — the first federal-level standards that mirror the essence of proof of reserves. These policy milestones show the direction is set; now it’s up to exchanges to lead rather than follow.
The industry’s need for transparency extends beyond PoR. Recent headlines around opaque exchange listing practices — where projects face unclear demands for fees or token allocations — highlight this broader need for accountability. While distinct from proof of reserves, these issues underscore how a lack of transparent standards erodes confidence across the board. PoR, with its cryptographic proofs and independent audits, ensures customer funds remain secure and accessible through mathematically verifiable systems, and that same approach should extend to every aspect of exchange operations.
Credible PoR frameworks rely on technologies, like zk-STARK zero-knowledge proofs and Merkle trees, enabling anyone to verify reserves while keeping their personal data private. The goal is simple: to give customers confidence that their assets are entirely theirs and fully withdrawable. That is the essence of accountability.
The strength of crypto depends on trust, and trust can’t exist without transparency. Every exchange has an opportunity to commit to provable solvency standards, backed by independent audits and open‑source data. Customers, too, can take an active role in examining the facts instead of relying on assumptions — the tools and information are increasingly available.
Transparency alone isn’t enough. To grow sustainably, exchanges must integrate with traditional finance. Leading exchanges are already building these bridges; some have partnered with global systemically important banks to offer institutional-grade custody alongside exchange trading. Others are hiring hundreds of compliance, risk and law enforcement response experts to meet the standards of regulated finance.
We must challenge the crypto industry’s Wild West image.That means not just building bridges to regulated finance but also remembering what we learned during bear markets.
Everyone in this industry has a responsibility to strengthen their systems and take meaningful steps toward greater accountability and integration with the wider, regulated financial world.
Opinion by: Lennix Lai, global chief commercial officer of OKX.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
AAVE price prediction targets $226-246 recovery within 4-6 weeks as technical indicators suggest oversold bounce potential despite current bearish momentum at $183.86.
Aave’s price action presents a compelling technical setup for a potential recovery rally despite the recent 13.74% daily decline. Our comprehensive AAVE price prediction analysis suggests the DeFi protocol’s token is approaching oversold levels that historically precede meaningful rebounds.
AAVE Price Prediction Summary
• AAVE short-term target (1 week): $205-215 (+11-17%)
• Aave medium-term forecast (1 month): $226-246 range (+23-34%)
• Key level to break for bullish continuation: $249.00
• Critical support if bearish: $176.71
Recent Aave Price Predictions from Analysts
The analyst community shows cautious optimism in their latest Aave forecast despite current market turbulence. CoinCodex maintains the most bullish AAVE price prediction with a $226.07 target by November 18, representing a potential 17.08% gain from current levels. This aligns closely with Blockchain.News and ABC Money’s $246 price target, supported by strong fundamental metrics including Aave’s $25 billion Total Value Locked.
However, FX Leaders presents a more conservative near-term outlook with targets of $199.50 daily and $205.00 weekly, reflecting the current technical uncertainty. The Market Periodical’s identification of a weekly TD Sequential ‘9’ buy signal adds credibility to the bullish case, suggesting institutional accumulation despite retail selling pressure.
The consensus among analysts points toward a recovery scenario, though timeframes vary from immediate (5 days) to extended (4-6 weeks).
AAVE Technical Analysis: Setting Up for Oversold Bounce
Current Aave technical analysis reveals a classic oversold setup that often precedes significant rebounds. With AAVE trading at $183.86, the token sits just above the lower Bollinger Band at $181.38, indicating extreme selling pressure that’s reaching exhaustion levels.
The RSI reading of 37.91 approaches oversold territory, while the Stochastic %K at 11.85 confirms selling momentum is overdone. Most telling is AAVE’s position relative to key moving averages – trading 48.61% below its 52-week high of $357.78 creates substantial recovery potential.
The MACD histogram at -0.2490 shows bearish momentum is slowing, though it hasn’t yet crossed into positive territory. Volume analysis from the $76.1 million in 24-hour trading suggests institutional interest remains despite retail capitulation.
AAVE’s distance from the SMA 20 at $213.20 represents a 16% gap that typically gets filled during relief rallies, supporting our initial AAVE price target of $205-215.
Aave Price Targets: Bull and Bear Scenarios
Bullish Case for AAVE
The primary bullish Aave forecast centers on a multi-stage recovery beginning with a test of the $205-215 resistance zone (7-day and 12-day EMAs). Breaking above $215 with volume would target the 20-day SMA at $213.20, followed by the critical $249 resistance level.
A sustained break above $249 opens the path to analyst targets of $246-302, with the upper Bollinger Band at $245 serving as an intermediate target. The strongest bullish scenario sees AAVE price prediction reaching $340-370 if the protocol’s fundamental growth continues supporting price appreciation.
Technical confirmation would require RSI breaking above 50 and MACD crossing into positive territory, both achievable within 2-3 weeks given current oversold conditions.
Bearish Risk for Aave
The primary risk to our optimistic AAVE price prediction lies in a break below the $176.71 immediate support level. Such a breakdown would target the pivot point at $193.63, though this seems unlikely given current fundamental strength.
A more severe bearish scenario could see AAVE testing the $125.30 yearly low if broader crypto markets experience significant selling pressure. However, the protocol’s strong TVL growth and revenue metrics provide substantial downside protection.
Critical warning signs would include RSI breaking below 30 and daily volume exceeding $150 million on downside moves, suggesting institutional distribution rather than retail capitulation.
Should You Buy AAVE Now? Entry Strategy
Current levels present an attractive entry opportunity for the patient investor willing to buy or sell AAVE based on technical merit. Primary entry zones exist between $180-190, with the strongest support at $176.71 offering maximum risk-reward potential.
Conservative traders should wait for confirmation above $200 before establishing positions, while aggressive buyers can accumulate on any test of the $176-180 support zone. Position sizing should reflect the high volatility environment, with stop-losses placed below $170 to limit downside risk.
The optimal entry strategy involves scaling into positions over 1-2 weeks, taking advantage of any additional weakness while maintaining dry powder for a potential breakdown scenario.
AAVE Price Prediction Conclusion
Our comprehensive analysis supports a medium-confidence AAVE price prediction targeting $226-246 within 4-6 weeks, representing 23-34% upside potential from current levels. The confluence of oversold technical conditions, strong fundamental metrics, and analyst consensus creates a compelling setup for patient investors.
Key indicators to monitor include RSI crossing above 45 (bullish confirmation) and daily closing prices above $200 (trend reversal signal). Invalidation of this prediction would require a sustained break below $176.71 with high volume.
The timeline for this Aave forecast extends through December 2025, with initial confirmation signals expected within 7-10 trading days. Investors should remain flexible as cryptocurrency markets can shift rapidly, but current risk-reward dynamics favor the bullish scenario over bearish alternatives.
Disney and other consumer names disappointed on earnings, adding pressure to markets after the prolonged US government shutdown.
Analysts see no sign of insider-driven Bitcoin selling, with BTC instead reflecting wider doubts about valuations and US economic stability.
The tech-heavy Nasdaq Index fell 2.3% on Thursday after Palantir CEO Alex Karp made cautious remarks about the profitability of the artificial intelligence sector. In an interview at Yahoo Finance’s Invest event, Karp said not every AI implementation will “create enough value to justify the actual cost.” Investors fear the US economy may be entering a weaker phase.
Nasdaq index futures (red) vs. BTC/USD (right). Source: TradingView / Cointelegraph
Shares of Palantir (PLTR), Intel (INTC) and CoreWave (CRWV) posted daily losses of 6% or more. Bitcoin (BTC) followed the broader risk-off move, trading down 6.5% after testing the $105,000 level on Wednesday. The pullback sparked $350 million in liquidations of leveraged bullish BTC positions, likely contributing to the loss of the key $100,000 psychological support.
There is little evidence that traders are specifically worried about Bitcoin or that any major event triggered additional fear or uncertainty. Analysts emphasize that the recent sell pressure does not support the narrative that Bitcoin insiders are cashing out. According to PlanB, the creator of the stock-to-flow metric, the long-term supply pressure originated from holders who were active between 2017 and 2022.
AI build-out cost and US macroeconomic issues worry investors
Tesla (TSLA) stock deepened its decline after the company was forced to recall more than 10,500 units of its self-consumption energy storage system. At least 22 overheating reports linked to the $8,000 device, manufactured in the US, prompted the preventive action. TSLA had already been under pressure after outlining plans to build a 10 million-unit Optimium humanoid robot line in Austin.
Beyond the AI sector, traders lowered their expectations for the US Federal Reserve’s monetary policy path. According to the CME FedWatch Tool, the implied odds of the Fed cutting interest rates below 3.5% by January 2026 slipped to 20%, down from 49% on Oct. 13. Analysts note the Fed’s main concern remains sticky inflation, which continues to hit lower-income workers hardest, according to Yahoo Finance.
US President Donald Trump signed a temporary government funding bill to end the shutdown, but White House Press Secretary Karoline Leavitt said on Wednesday that some October economic reports might not be published. Former Fed Vice Chair Lael Brainard warned that AI investments are masking cracks “under the hood,” as the rest of the economy struggles with weak demand.
US Gross Domestic Product contribution from IT and software. Source: Bloomberg
Shares of Disney (DIS) dropped 8% after the company reported weaker-than-expected quarterly results, pressured by its streaming and theatrical segments. The entertainment giant joins several other consumer-focused companies that recently disappointed on earnings, including DoorDash (DASH), Dollar Tree (DLTR) and Starbucks (SBUX).
Investors now have reduced visibility into the economic outlook after the record 43-day government funding shutdown. While some analysts argue that the US Gross Domestic Product could take a 2% hit, others say most of the negative effects will be reversed once federal spending returns. RBC analysts raised concerns about interpreting US job market data, “since furloughed and essential employees would be counted as unemployed.”
It may take time for investors to determine whether stock market valuations are stretched and to gauge the odds of the US government injecting liquidity through tax cuts or stimulus checks. Until then, Bitcoin (BTC) is likely to mirror broader economic uncertainty, amplified by the lack of consistent and reliable data.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Bitcoin’s rise past $100,000 in 2025 marked a shift from speculative trading to long-term institutional adoption. Banks and governments began viewing BTC as a strategic reserve asset.
The GENIUS Act established a unified US framework for payment stablecoins, mandating 1:1 reserve backing, stricter issuer qualifications and stronger consumer protections.
Real-world asset tokenization surpassed $30 billion onchain, driven by tokenized US Treasurys and private credit. Firms such as BlackRock, JPMorgan and Apollo integrated RWAs into DeFi markets.
Onchain perpetual futures recorded over $1 trillion in monthly trading volume, with platforms like Hyperliquid achieving speed and depth comparable to centralized exchanges.
Bitcoin (BTC) crossing the $100,000 threshold this year carried more symbolic weight than speculative excitement. What was once seen as a speculative asset became a structured part of the global financial system. 2025 has turned out to be a year focused less on hype and more on meaningful progress in infrastructure, regulation, institutional investment and technology.
This article highlights the most significant cryptocurrency events of the year.
Bitcoin enters an institutional phase
Spot Bitcoin exchange-traded funds (ETFs) brought Bitcoin into the portfolios of asset managers, pension funds and corporate treasuries, pushing it beyond retail markets. Daily ETF inflows became a key indicator of market confidence. Unlike previous cycles driven by high-leverage trading, 2025 saw steady interest from professional investors.
Banks began conducting Bitcoin transactions on their own balance sheets. Intesa Sanpaolo, Italy’s largest bank, made its first proprietary Bitcoin trade in January 2025, purchasing 1 million euros worth of BTC as an experiment. Several countries are also exploring the idea of strategic Bitcoin reserves, referring to long-term national holdings of the asset.
On March 6, 2025, US President Donald Trump signed an executive order establishing a strategic Bitcoin reserve, a permanent asset fund supported by forfeited BTC. The Czech National Bank has also announced that it is considering adding Bitcoin to its strategic reserves.
Did you know? Bitcoin mining firms partner with energy producers to stabilize electrical grids and monetize surplus power.
Passing of the GENIUS Act
In 2025, stablecoins matured from trading instruments into regulated payment and settlement assets. The GENIUS Act, signed into law on July 18, 2025, established the first comprehensive US federal framework for payment stablecoins.
The law clarifies that qualifying payment stablecoins are not securities, creates a unified federal licensing and oversight regime for issuers and requires full 1:1 reserve backing with high-quality, highly liquid assets such as cash and short-term US Treasurys. It also mandates regular public disclosures of reserve composition to ensure transparency and consumer protection.
Only approved and qualified entities, such as subsidiaries of insured depository institutions, can now issue stablecoins. These issuers must meet strict standards for capital, liquidity and risk management. The act also includes provisions to protect stablecoin holders in the event of issuer insolvency.
While the GENIUS Act drew inspiration from earlier proposals, it strengthened safeguards for financial stability. It addressed concerns about a fragmented monetary system by establishing a clearer and more coordinated regulatory framework for digital dollar payments.
The rise of real-world asset tokenization
In 2025, real-world asset (RWA) tokenization transitioned from experimental pilots to institutional mainstream, with onchain value surpassing $30 billion, representing a 300%-400% increase over three years. US Treasurys and private credit are driving institutional adoption.
The benefits of RWA tokenization include fractional ownership, 24/7 liquidity and cross-chain interoperability through protocols such as Chainlink CCIP. Institutions like JPMorgan and Apollo are integrating RWAs into decentralized finance (DeFi), further blurring the boundaries between traditional finance and blockchain.
Did you know? Tokenized US Treasurys became one of the fastest-growing categories in DeFi, offering low-risk, onchain yields.
Onchain perpetual futures and the Hyperliquid milestone
In October 2025, DeFi perpetual futures surpassed $1 trillion in monthly trading volume, putting platforms like Hyperliquid on par with centralized crypto exchanges. The daily trading volume for decentralized perpetual contracts averaged around $45.7 billion that month, while onchain open interest rose to $16 billion. This increase reflects sustained market positioning rather than short-lived speculative activity.
Hyperliquid’s HIP-3 upgrade in October enabled permissionless market creation through the staking of 500,000 HYPE tokens. The update decentralized listings and encouraged innovation in new asset classes such as equities and RWAs. The platform’s sub-second execution and deep liquidity have further narrowed the gap between centralized and decentralized exchanges.
Ethereum strengthens its core role
This year, Ethereum reinforced its foundational role in the blockchain ecosystem through strategic upgrades and growing institutional adoption. The Pectra upgrade, activated in May, doubled blob capacity, reduced layer-2 fees and improved transaction throughput. It also raised the validator staking cap from 32 ETH to 2,048 ETH, enhancing validator efficiency.
In July 2025, spot Ether ETFs attracted $12.1 billion in inflows, led by BlackRock’s iShares Ethereum Trust (ETHA), highlighting strong institutional demand. Regulatory clarity from US Securities and Exchange Commission rulings positioned Ethereum as compliant infrastructure for DeFi and RWAs, reinforcing its role as Web3’s resilient settlement layer. The upcoming Fusaka upgrade in December is expected to deliver further PeerDAS optimizations, strengthening Ethereum’s long-term position.
Did you know? Corporations are increasingly using private or hybrid Ethereum chains for supply-chain tracking and settlement workflows.
Solana’s transformation
Solana’s narrative took a sharply positive turn in 2025. Once criticized for network outages and instability, the network made major strides in reliability and performance. The introduction of Firedancer, a new validator client, enhanced redundancy and processing capacity, reflecting Solana’s focus on large-scale, dependable operations.
Institutional and derivatives markets also embraced Solana in 2025. Leading regulated platforms introduced Solana-based futures and options, enabling hedging and arbitrage opportunities that were previously limited to Bitcoin and Ether (ETH). This development reinforced Solana’s growing importance in high-volume applications such as onchain trading, gaming and consumer services.
Industry addresses security challenges
The industry faced another reminder in 2025 that security remains a major challenge. With more than $2.17 billion stolen from cryptocurrency services as of Nov. 11, 2025, this year has already proven more devastating than the entirety of 2024 in terms of total losses. A large portion of the stolen funds came from North Korea’s $1.5-billion hack of Bybit.
As cryptocurrency becomes more integrated into global finance, security failures now pose systemic risks rather than isolated incidents. The growing sophistication of attackers has mirrored the industry’s own technological progress. In 2025, AI-driven attacks and complex supply chain vulnerabilities led to widespread efforts across the industry to strengthen cybersecurity practices.
The Fed’s Dec. 9-10 meeting carries unusual weight as markets wait to see whether another rate cut will arrive before Christmas, shaping bonds, equities and crypto.
After two cuts in 2025, rates now sit at 3.75%-4.00%. Labor weakness and softer inflation support further easing, but officials remain divided because inflation risks have not fully cleared.
A cooling job market, easing inflation and the end of quantitative tightening could justify another reduction and align with year-end liquidity needs.
Sticky inflation, gaps in economic data caused by the government shutdown and a divided Fed may push policymakers to keep rates unchanged this December.
When the US Federal Reserve meets on Dec. 9-10 to decide on interest rates, it will not be just another routine gathering. Markets are watching closely to see what direction policymakers choose. Will the Fed cut rates again before the holidays? A pre-Christmas Eve reduction could send waves through bonds, stocks, credit markets and crypto.
This article explains why the Fed’s pre-Christmas meeting is significant and outlines the factors supporting or opposing a potential rate cut. It also highlights what to watch in the coming weeks and how a Fed move could affect crypto and other financial markets.
The background of a December rate cut
Central banks typically cut rates when inflation is easing, economic growth slows or financial conditions become too tight. In late October, the Federal Reserve lowered rates by 25 basis points, setting the federal funds target range at 3.75%-4.00%, its lowest level since 2022. The move followed another 25-basis-point cut in September 2025, making it the Fed’s second rate reduction of the year.
The move came amid clear signs of a cooling labor market. October recorded one of the worst monthly layoff totals in more than two decades, according to multiple labor-market reports, reinforcing concerns about weakening job conditions. The Fed’s October statement echoed this trend, noting that risks to employment had increased even as inflation remained somewhat elevated.
At a press conference, Fed Chair Jerome Powell stressed that a December cut is “not a foregone conclusion.” Yet economists at Goldman Sachs still expect a cut, pointing to clear signs of labor market weakness. Fed officials remain divided, with some emphasizing inflation risks and the limited room for further easing.
A December rate cut is possible, but it is not guaranteed.
Factors supporting a potential rate cut
There are several reasons the Fed may decide to cut rates:
Cooling labor market: Private sector data shows softer hiring, rising layoffs and a slight increase in unemployment.
Moderating inflation: Inflation is still above target but continues to trend lower, giving the Fed more flexibility to ease policy.
Ending quantitative tightening: The Fed has announced it will stop reducing the size of its balance sheet beginning Dec. 1.
Pre-holiday timing: A rate cut would align with year-end liquidity needs and help set expectations for 2026.
Arguments for the Fed to postpone action
Several factors suggest the Fed may delay a rate cut in the near future:
Sticky inflation: According to the Fed’s latest statement, the inflation rate remains “somewhat elevated.”
Data vacuum: The US government shutdown has delayed key employment and inflation reports, making policy assessments more difficult.
Committee division: Federal Reserve officials are split on the appropriate path forward, which encourages a more cautious approach.
Limited room for easing: After multiple cuts this year, some analysts argue that policy is already close to a neutral level.
Did you know? In March 2020, the Fed cut interest rates to near zero to respond to the COVID-19 crisis. It lowered rates by a total of 1.5 percentage points across its meetings on March 3 and March 15.
What to monitor before December
These factors are likely to shape the Fed’s upcoming policy decision on rate cuts:
Nonfarm payrolls and unemployment: Is the job market continuing to slow?
Inflation data: Any unexpected rise in inflation will reduce expectations for policy easing.
Financial conditions and market signals: Are credit spreads widening, and is overall market liquidity tightening?
Fed communications: Differences of opinion within the Federal Open Market Committee (FOMC) may influence the outcome.
External shocks: Trade developments, geopolitical risks or sudden supply disruptions could shift the Fed’s approach.
Did you know? US stocks have historically returned about 11% in the 12 months after the Fed begins cutting rates.
How a Federal Reserve cut may impact crypto
Fed rate cuts increase global liquidity and often push investors toward riskier assets like crypto in search of higher returns. Bitcoin (BTC) and Ether (ETH) tend to benefit from stronger risk appetite and rising institutional inflows. Lower decentralized finance (DeFi) borrowing rates also encourage more leverage and trading activity. Stablecoins may see greater use in payments, although their yield advantage narrows when rates fall.
However, if a rate cut is interpreted as a signal of recession, crypto may experience equity-like volatility. Markets might see an initial boost from easier liquidity, followed by a pullback driven by broader macro concerns. If global financial conditions loosen instead, the environment could support further crypto demand.
Lower borrowing costs make it easier for people and institutions to take investment risks, which can draw more interest toward digital assets. As more money flows into the sector, crypto companies can build better tools and services, helping the industry connect more smoothly with the rest of the financial system.
Did you know? When the Fed cuts rates, short-term bond yields usually fall first, creating opportunities for traders who track movements in the yield curve.
Consequences of a Fed rate cut on other financial sectors
Here is a look at the potential effects on major asset classes if the Fed cuts interest rates:
Bonds and yields: Short-term yields will likely decline as markets adjust their expectations. The yield curve may steepen if long-term yields remain stabler than short-term ones, which can signal confidence in future growth. If the cut is viewed as a sign of recession risk, long-term yields may fall as well, resulting in a flattening or even an inversion of the curve.
US dollar and global FX: A rate cut generally weakens the dollar because interest rate differentials narrow. This often supports emerging markets and commodity-exporting countries. If the cut is driven by concerns about economic growth, safe-haven demand may temporarily push the dollar higher.
Equities: A pre-Christmas Eve rate cut could spark a rally in US stocks if investors see it as a sign of confidence in a soft landing. A soft landing refers to cooling inflation alongside a stable labor market. If the cut is motivated by growth worries instead, corporate earnings may come under pressure, and defensive sectors could outperform cyclical ones.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Uniswap (UNI) Labs announces Continuous Clearing Auctions, a protocol to boost liquidity on Uniswap v4, enabling a transparent and fair market price discovery for new and low-liquidity tokens.
Uniswap (UNI) Labs has unveiled Continuous Clearing Auctions (CCA), a new protocol designed to enhance liquidity on Uniswap v4, according to their official blog. This permissionless protocol aims to facilitate fair price discovery for new and low-liquidity tokens, addressing key challenges in the decentralized finance (DeFi) landscape.
Addressing Liquidity Challenges
Liquidity formation in traditional settings often occurs behind closed doors, leading to information asymmetry and market instability. CCA seeks to mitigate these issues by operating entirely on-chain, ensuring transparency in pricing, bidding, and settlement processes. The protocol’s design principles focus on on-chain-native market creation, gradual price discovery, and automatic liquidity seeding on Uniswap v4.
How Continuous Clearing Auctions Work
The CCA protocol begins with projects defining the number of tokens to sell, a starting price, and the auction duration. Features such as running auctions in tranches and using verification tools like the ZK Passport are available. Participants place bids specifying maximum prices and total spend, with bids automatically distributed across auction blocks.
At each block’s conclusion, a market-clearing price is determined, ensuring that all tokens for that block are sold at a uniform price. Early bidders may benefit from lower average prices due to the protocol’s design, which favors bids placed earlier in the auction.
Further Developments and Collaborations
Uniswap Labs has launched the Continuous Clearing Auction contract, available for immediate use. In collaboration with Aztec, the protocol includes optional modules for private, verifiable participation, enhancing user privacy and security. Additional modules are planned to further improve the auction experience for projects and communities leveraging CCA.
With the introduction of Continuous Clearing Auctions, Uniswap Labs continues to innovate within the DeFi space, offering tools that democratize liquidity formation and facilitate equitable market entry for new tokens.
Bitcoin (BTC) has rebounded 8.7% to $107,500 on Tuesday, following its four-month low of $98,900, as whales took advantage of discounted prices to add to their holdings. The price has since corrected below $103,000 on Thursday, as $106,000 proved a tough barrier to break.
Key takeaways:
Bitcoin whales recorded their second-largest weekly accumulation of 2025.
Long-term holders continue to sell, frustrating recovery attempts.
BTC sell pressure sits at $106,000, a resistance level that may stop the bulls.
Market participants have observed deliberate posturing by whales, as these large holders recorded their second-largest accumulation of 2025, according to data from market onchain data provider CryptoQuant.
In March, whales — entities holding 1,000 BTC or more — initiated the most significant accumulation wave of the year amid a sharp decline in Bitcoin price.
“In the last week, whales accumulated more than 45,000 BTC, marking the second-largest weekly accumulation process in these wallets,” said CryptoQuant analyst Caueconomy in a Wednesday Quicktake analysis, adding:
“Large players are once again taking advantage of the capitulation of small investors to absorb coins.”
Bitcoin whale weekly change. Source: CryptoQuant
Nevertheless, this spot buying volume was insufficient to demonstrate a more widespread buy-the-dip recovery pattern.
There is a need for “renewed conviction and stronger demand from new market entrants” and other investors, such as day traders and retail investors, to push the price to above $106,000, Glassnode said in its latest Week Onchain report.
However, not all Bitcoin whales are accumulating. Long-term whale, Owen Gunden, continued to sell, transferring 2,401 BTC worth $245 million to Kraken on Thursday, according to Onchain Lens.
Owen Gunden has deposited 2,401 $BTC, worth $244.96M, into #Kraken, 3 hours ago.
As Cointelegraph reported, OG holders have moved large sums of BTC to exchanges, raising concerns about long-term confidence as Bitcoin loses momentum.
Bitcoin faces stiff resistance above $106,000
The BTC/USD pair failed to break $106,000 as its rebound stopped short of a bull market comeback.
This is due to “a dense supply cluster between $106K and $118K that continues to cap upward momentum, as many investors use this range to exit near breakeven, said Glassnode.
According to Bitcoin’s cost basis distribution heatmap, investors hold about 417,750 BTC at an average cost of between $106,000 and $107,200, establishing a resistance zone.
Glassnode added:
“This overhang of latent supply creates a natural resistance zone where rallies may stall, suggesting that sustained recovery will require renewed inflows strong enough to absorb this wave of distribution.”
Bitcoin: Cost Basis Distribution Heatmap. Source: Glassnode.
Traders say the BTC/USD pair must flip the resistance between $106,000 and $107,000 into support to target higher highs above $110,000.
“BTC is trending up on the lower time frame,” said analyst Daan Crypro Trades in a recent X post, adding:
“But it needs to break that $107K area. If it can do so, it would turn this into a decent deviation and retake back into the range.”
BTC/USD daily chart. Source: Daan Crypto Trades
Technical analyst CRYPTO Damus said BTC price to “make a higher high above 106K and breakout above the down trend line at $107,350 to flip the script bullish.”
“If we want to break upward, I’d rather want to see a break north of $108K-$110K, and then we’ll see a new ATH,” MN Capital founder Michael van de Poppe said in a Friday post on X.
As Cointelegraph reported, a break and close above the breakdown level of $107,000 would signal that the bulls are back in the driver’s seat.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
A green light for institutional staking alone will not signal a long-term future for Ethereum. As institutions enter the Web3 ecosystem, they need to recognize that ETH isn’t an asset that can be fit into existing TradFi molds; it’s the World Computer. Unless institutions can embrace Ethereum’s philosophy of decentralization, as well as its token, their core infrastructure and inherent proposition are doomed to fail.
The dot-com bubble offers a cautionary tale for Ethereum adopters. It burst partly because institutions dove headfirst into the consumer internet’s lucrative market potential without sufficiently understanding the infrastructure beneath it. The gap between capital and comprehension bred dysfunction.
Institutions should not repeat that mistake. As they move onchain, they should adopt a more balanced approach: accruing economic rewards while actively supporting network health and respecting the blockchain’s underlying ethos.
Institutions need to stake
ETH staking exemplifies this balance. In August 2025, the SEC declared that “most staking activities” were not securities, emphasizing that the yield from staked ETH was accrued through administrative acts to maintain the network. SEC guidelines and other important legislation were a landmark decision that opened the floodgates for institutional capital, and now over 10% of ETH is held in ETFs or strategic reserves.
As institutions pile in, however, they must remember that while staking their ETH reserves is a potentially lucrative exercise, its primary function is to support the underlying infrastructure.
Through staking, validators lock up ETH as collateral. If they validate transactions correctly, they earn rewards, but if they act maliciously or fail to perform their duties, their stake is penalized. This economic incentive, spread across thousands of independent validators, is what keeps the network secure and running smoothly.
To ensure regulatory compliance and shore up the future value of their assets, institutions must contribute meaningfully to the maintenance of Ethereum’s decentralized network through staking, while mitigating any risk of centralization or downtime.
DVT offers security in the face of centralization
The total amount of staked ETH is approaching 36 million (~29% of the supply), with around 25% held by centralized exchanges. With staking-enabled ETFs likely to encourage institutional interest in staking, ETH is approaching concentration thresholds whereupon the Ethereum Network’s decentralization could be meaningfully questioned, thus risking the security of the network and compromising the inherent purpose of the staking mechanism.
Several paths exist to address centralization risks, including encouraging client diversity, improving the geographic distribution of infrastructure, and supporting staking protocols with decentralized node operators.
Relying on piecemeal strategies alone may prove insufficient. What is needed are wholesale infrastructural solutions that can securely support global institutions.
Distributed validator technology (DVT) is an obvious solution. By splitting validator duties between multiple machines and spreading their responsibilities across different nodes, it ensures not only that the distribution of infrastructure maintaining validators is decentralized, but their functions too, ensuring the arrangement of validators in a global network of independent nodes.
Through threshold cryptography and multisignature validation, DVT prevents any single operator from controlling or compromising a validator. In contrast, its distributed architecture prevents single-point failures in the network, increasing resistance to censorship, outages, malicious activity and attacks.
DVT works for institutions
If institutions and exchanges adopt this setup, it removes the risk of a lopsided distribution of staked ETH, and improves the security and capital efficiency of their stake. DVT vastly reduces slashing risks while achieving ~99% uptime through fault-tolerant multiparty operation.
DVT eliminates single-point failures that could expose institutions to validator penalties and therefore maximizes rewards. Institutions using such infrastructure would have superior risk profiles compared to their alternatives, with greater fault tolerance and guaranteed regulatory compliance due to their maintenance of Ethereum’s network health.
The May 2025 Pectra upgrade increased the maximum stake to 2,048 ETH per validator. This is inherently a positive development for institutions with substantial ETH holdings and directly appeals to ETH reserve companies. Validators with such a large delegation of ETH do, however, pose inherent risks of centralization. DVT allows for large staking delegations while maintaining decentralization, without the operational overhead of spreading them over many validators to mitigate these risks.
The wholesale adoption of solutions like DVT would lead to a virtuous cycle, wherein every delegation of staked ETH would provide predictable, secure returns to institutional investors, while shoring up the underlying asset and ensuring decentralized validator distribution. Not only does DVT demonstrate how an ethos of decentralization can be hardwired into institutional adoption, it also shows how global finance and a cypherpunk ethos can coexist in productive ways.
ETH is more than an asset
The lesson institutions must internalize is this: ETH cannot be treated as just another treasury asset. It represents ownership in a decentralized computational network whose value proposition depends entirely on maintaining that decentralization. Institutions that stake without regard for network health are undermining their own investment thesis: Centralized Ethereum is a contradiction in terms.
This doesn’t mean sacrificing returns; instead, it means recognizing that sustainable yields depend on healthy infrastructure. By embracing DVT and other decentralization-preserving technologies, institutions can simultaneously maximize their economic returns and secure the network they now have significant stakes in.
The choice is simple: Build Ethereum’s future on solid, distributed infrastructure, or risk regulatory uncertainty and technical risks undermining the inherent value driving the most significant wave of crypto adoption in history.
Opinion by: Alon Muroch, founder of SSV Labs.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Ripple is spending about $4 billion to combine prime trading, treasury tools, payments and custody into a single integrated setup.
RLUSD trials aim to settle real card payments and corporate payouts onchain, then sync results back into ERP and TMS systems.
To scale, Ripple needs strong controls with clear reserves, strict compliance checks and transparent accounting rules.
Success will show in the data through faster settlements, lower costs and consistent real-world volume every day.
Ripple is positioning itself for a bigger role in traditional finance. In an interview at Swell 2025, the company described its $4 billion acquisition spree as the foundation for moving institutional money on the XRP Ledger alongside existing banking workflows.
The push comes after:
A new $500-million raise at a reported $40 billion valuation
A deal to acquire multi-asset prime broker Hidden Road for about $1.25 billion
A Ripple USD (RLUSD) pilot with Mastercard, WebBank and Gemini aimed at settling card payments onchain.
Taken together, the plan spans custody through Metaco, prime brokerage access and stablecoin-based settlement that integrates with the treasury and enterprise resource planning (ERP) systems already used by banks and corporates.
What the $4 billion actually buys
Prime brokerage and credit: Ripple agreed to acquire non-bank prime broker Hidden Road for about $1.25 billion, giving institutions unified market access, clearing, financing and, where supported, the option to use RLUSD as eligible collateral.
Treasury software integration: A roughly $1-billion deal for GTreasury connects Ripple to corporate treasury management system (TMS) and ERP workflows, including cash positioning, foreign exchange, risk management and reconciliation. This allows onchain settlements to be reflected within existing finance systems.
Stablecoin payments stack: The purchase of Rail, valued at about $200 million, adds virtual accounts, automated back-office tools and cross-border stablecoin payout capabilities. It serves as the operational layer for routing RLUSD through real business-to-business (B2B) payment flows.
Bank-grade custody and controls:Metaco, acquired in 2023, provides segregation of duties, policy engines and institutional key management for tokens, stablecoin reserves and enterprise wallets.
Card and merchant settlement pilot: In partnership with Mastercard, WebBank (the issuer of the Gemini card) and Gemini, Ripple is testing RLUSD settlement on the XRP Ledger. The initiative marks an early step toward shifting traditional fiat card batches to stablecoin-based settlement.
Capital and distribution: The new $500-million funding round gives Ripple room to integrate its acquisitions and expand sales to banks, brokers and large corporations.
Each line item targets a distinct function, including prime access, treasury connectivity, payment operations, custody and the capital that ties them together. The structure is designed to reduce overlap and demonstrate how all the pieces fit.
Did you know? In corporate finance, most treasurers still reconcile payments by importing batch files into ERP and TMS platforms. Any onchain settlement that can auto-generate those files helps reduce manual work at month-end.
How an enterprise would use Ripple
A) Cross-border payouts for a corporate treasurer
First, the treasury team sets the ground rules in the company’s TMS, defining approval limits, currency caps and eligible beneficiaries.
Next comes funding. The finance team moves cash from the operating account and converts a portion into RLUSD or XRP (XRP) through connected banking channels or prime brokerage access, assigning wallets to each subsidiary or business unit.
When a payout is created, the treasurer decides how to handle foreign exchange, choosing whether to convert before sending or upon receipt, and routes the transaction through Ripple’s payments stack with optional conversion at the edge for last-mile fiat delivery.
Settlement is nearly instant. The ledger event, invoice reference and payment details flow back into the ERP and TMS platforms, so reconciliation happens automatically.
Safekeeping is handled either in-house, with role-based policies and hardware security module (HSM) and multiparty computation (MPC) controls or through a qualified custodian. Duties are separated to align with enterprise governance policies.
Throughout the month, real-time transaction limits, the Travel Rule and Know Your Customer (KYC) checks and thorough auditing help maintain controls and support the month-end close.
B) Broker-dealer liquidity and financing
A broker or market desk connects to spot and derivatives venues through prime brokerage APIs to centralize market access, credit, clearing and settlement. RLUSD or XRP can be posted as collateral depending on the platform’s rules. Each platform decides how much of that collateral’s value counts toward a loan or trade (called a haircut) and which asset gets used first if more funds are needed (called margin priority).
Financing is activated as needed, whether term or intraday, against approved collateral with real-time visibility into limit utilization. Positions are netted to custody at the end of the day, and any excess funds are swept to the treasury for working capital or short-term yield. Trade and position data feed into risk, profit and loss (PnL) and compliance dashboards, with records archived for audits and regulatory reviews.
C) Card and merchant settlement
In the card pilot, the acquirer nets a day’s merchant transactions and prepares a single batch. The net amount settles in RLUSD on the XRP Ledger, with the option to convert to fiat immediately at the sponsor bank.
The treasury team imports the batch file, closes receivables and updates cash positions in the ERP and TMS platforms as usual.
Disputes and chargebacks continue under existing card network rules, and any fiat adjustments map directly to accounting entries. This means finance teams do not need to modify their existing month-end close process.
Did you know? Auditors increasingly ask for deterministic links between a payment instruction, its onchain transaction and the corresponding accounting entry. API-native evidence packs can significantly shorten audit timelines.
What changes if this all lands?
Charter and Fed access
If Ripple or one of its affiliates obtains a bank charter and a US Federal Reserve master account, the setup would change for clients. Stablecoin reserves could be held directly at the Fed instead of through a commercial intermediary, reducing counterparty and settlement risk. Payment flows would also gain clearer finality windows and fewer intermediaries, which is important for treasurers who measure every leg of cost, latency and reconciliation.
Stablecoin treatment and controls
Scale depends on maintaining bank-grade discipline. Expect scrutiny over reserve segregation, stress testing, intraday liquidity management and whether RLUSD can qualify as a cash equivalent in specific contexts. Independent attestations and transparent look-throughs to reserve assets will likely be a gating requirement for many finance teams.
Card networks and sponsor banks
For card settlement and merchant payouts, alignment on disputes, chargebacks, refunds and consumer protections is essential. The onchain component must map one-to-one with existing rules so operations teams do not need to redesign their exception-handling processes.
Travel Rule, sanctions and data
Cross-border payouts require KYC and Anti-Money Laundering (AML) processes that meet correspondent banking standards, along with reliable virtual asset service provider (VASP) information exchange and sanctions screening. Institutions will look for standardized data payloads, including beneficiary information, purpose codes and audit trails that integrate directly into compliance systems.
Accounting and reporting
Finance teams will need clear policies defining the instances when RLUSD should be classified as cash, restricted cash or a digital asset, how foreign exchange (FX) is recognized and how network fees are recorded. ERP connectors, detailed sub-ledgers and tight month-end reporting packs will determine whether “day two” operations function as a routine process.
Did you know? The Financial Action Task Force (FATF) Travel Rule sets a data-sharing threshold, typically around $1,000 or 1,000 euros, for VASPs. This is why stablecoin payout infrastructure emphasizes standardized beneficiary data and purpose codes.
How this differs from rivals
Most firms in this space focus on a single specialty:
Stablecoin issuers concentrate on the token and fiat on- and off-ramps.
Custodians provide safekeeping and policy controls.
Payment companies handle fund transfers.
Treasury vendors connect to ERP systems.
Prime brokers offer market access and credit.
Ripple’s bet is to package these components for institutions. The goal is to let a finance team move seamlessly from instruction in treasury to funding through RLUSD or XRP and then to execution in payments or prime brokerage. Finally, safekeeping takes place in custody without the need to stitch together multiple vendors.
The upside is straight-through processing with a single client setup, unified controls, a shared data model and fewer reconciliation breaks.
The risk lies in breadth over depth, as specialists may still outperform a full-suite solution in their specific niches. For Wall Street buyers, the key question is whether an all-in-one stack can lower total cost and latency across the entire workflow while maintaining bank-grade controls.
How to judge the Wall Street pitch
If this bridge is real, it will appear in unglamorous places first, such as treasury dashboards, card-settlement files and auditor sign-offs.
The tells are fairly simple:
RLUSD moving through merchant batches and supplier payouts
The prime, treasury and payments components operating under one client contract
Concrete charter and master-account developments that determine where reserves sit and how settlement finality is achieved.
If those signals start to appear, and corridor-level data shows better performance than the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and Automated Clearing House (ACH) networks on cost and speed, that will be the turning point. The story will then move beyond headline mergers and acquisitions. It will begin to take shape inside the everyday infrastructure of finance.
