Researchers at the California Institute of Technology theorize that a functional quantum computer may require far fewer qubits than previously thought, making it feasible for the first quantum computer to be deployed before the end of the decade.
Caltech researchers, working with a Caltech-linked start-up, Oratomic, said that by reducing the errors that “riddle today’s rudimentary quantum computers,” a functional quantum computer could be built with as few as 10,000 to 20,000 qubits.
It was previously thought that millions of qubits were necessary for a quantum computer to function properly, said Caltech. A qubit is the basic unit of a quantum computer and the equivalent of a bit in a classical computer to encode information in binary.
“The need for fewer qubits means that quantum computers could, in theory, be operational by the end of the decade,” Caltech said.
Moving atoms with optical tweezers
The theoretical innovation is a proposed error-correction architecture that leverages “neutral-atom systems,” in which atoms can be physically moved and connected across large distances using lasers called “optical tweezers.”
“We are developing new architectures for neutral-atom quantum processors that dramatically reduce the resource estimates for fault-tolerant quantum computing,” said Caltech theoretical physicist John Preskill on Tuesday, adding:
“This progress makes me optimistic that broadly useful quantum computing will soon be a reality.”
Manuel Endres, a professor of physics at Caltech who recently created the largest qubit array ever assembled, said:
“Unlike other quantum computing platforms, neutral atom qubits can be directly connected over large distances. Optical tweezers can shuttle one atom to the other end of the array and directly entangle it with another atom.”
The new tech allows each logical qubit to be encoded with as few as five physical qubits instead of around a thousand required by conventional methods, said Caltech.
“It’s actually very surprising how well this works. It’s what we call ultra-efficient error correction,” Endres said.
Layout and compilation procedure for the quantum computing logical architecture. Source:Caltech
Quantum frontiers closer than they appear
Oratomic said it will work in close collaboration with Caltech’s Advanced Quantum Computing Mission, with ongoing research into quantum information processing and the goal of building the world’s first utility-scale fault-tolerant quantum computer.
The research comes just a day after Google released a paper claiming that quantum computers could potentially break Bitcoin’s cryptography in nine minutes, needing much less computing power than originally thought.
Meanwhile, Google urged crypto developers in its paper this week to transition blockchains to post-quantum cryptography, or PQC, now rather than waiting for real threats to emerge.
Last week, the internet giant set a 2029 timeline for its PQC migration, warning that “quantum frontiers” could be closer than they appear.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Opinion by: Jeff Handler, co-founder at OpenTrade.
The tech has been solved. The digital dollars are flowing. In 2026, the only variable left is understanding who actually gets to collect and enjoy the fare.
2025 wasn’t the year stablecoins “went mainstream”, at least not how crypto pundits had envisioned. No specific app that dominated the download charts, nor was there a particular moment when stablecoins suddenly clicked for normies. Instead, by intentional design, digital dollars quietly and efficiently became working capital, nestling neatly into the world’s financial plumbing.
Now, as is the case with many elite technologies, stablecoins are invisible infrastructure.
That signals the start of a new era, not to drive their usage, but to capture the value in their movement.
The velocity imperative
In hindsight, the crypto industry has largely obsessed over the wrong metrics. The old mindset focused on market caps and coin wars, with tribalistic investors arguing about “Ethereum Killers” and coins that would go “only up”. No coin is ever destined for pure appreciation, so total market cap can be considered a vanity metric for static assets. Velocity is a far more interesting data point for promising infrastructure.
Onchain data suggests that total stablecoin transaction volumes in 2025 exceeded $33tn, up 72% from 2024. Considering the supply sat in the low hundreds of billions, that gap tells us the same dollars were being reused across settlements, payments, treasuries, and other contexts, flowing between wallets, exchanges, and rails, all on-demand. Transfer volumes outpaced market expansion, while stablecoins finally decoupled from spot trading.
Then, as movement overpowered markup, the Quantity Theory of Money became relevant. This theory suggests that money which circulates rapidly reduces the amount of supply needed to support a given level of economic activity. In short, the quantity and velocity of stablecoins reached sufficient levels for them to be considered a proven and necessary technology. This was especially felt in Latin America.
LatAm is the ideal utility blueprint
In the context of use cases, the US and Europe see stablecoins as a yield play or trading settlement tool (at least for now), with investors holding them or deploying them to earn interest or move between assets. In Argentina, Brazil, and Venezuela, however, they are tools for survival against high inflation, local currency volatility, and economic uncertainty.
In Latin America, local currencies must move quickly to preserve their purchasing power. This provides a fertile environment for stablecoins, where Argentines deploy them for 61.8% of all on-chain activity, just ahead of Brazil’s 59.8% figure.
While developed markets in the West are busy debating regulatory frameworks and nuanced tax setups, the Latin world has already substituted in stablecoins to escape local currency risk. The former sees them as a “nice to have.” The latter sees them as a necessity.
At a macro level, financial instruments demonstrating clear utility (over the promise of outsized gains) are more likely to become infrastructure. Therefore, Latin America is not really an outlier, but simply the first region to realize stablecoins could maintain value in a way local currencies cannot. It’s not hard to imagine similar economic circumstances on other continents driving even more stablecoin adoption.
The ongoing battle for rent extraction
Users who avoid overnight local FX spikes are not the only winners here. Major entities are already capturing “rent” on stablecoin reuse, with a pyramid-like structure of issuers, exchanges, and custodial services all quietly enjoying their returns.
Stablecoin issuer revenue comes from intelligent reserve management and distribution relationships. Tether, the issuer of USDT stablecoins, is now the world’s second most profitable company per employee. They are profiting from the float.
Exchanges are next in line, extracting fees from settlement and internal routing services. After them, traditional banks and neobanks have embraced stablecoins to permit tokenized deposits or on-chain settlement services, generating additional revenue streams.
At the bottom of the pyramid there are regulators, who may not profit directly from stablecoins, but ultimately influence who does. Through licensing and compliance frameworks, they indirectly shape who really profits from facilitating stablecoin transfers and under what conditions.
To reference Latin America again, this region can already see the rent extraction battle being played out. New on-ramps and off-ramps, stablecoin-friendly wallets, and crypto exchanges are all competing for attention to capture the fee margins. These services don’t need to see market growth. They simply need to drive velocity so that everyone can win.
Yet, for velocity to become sustainable, the incentives must align. Instead of letting yields cascade up to intermediaries, the industry should turn its attention to returning earnings directly back to the users. The people who are driving this economic activity are the ones who ultimately merit a share in the rewards.
Infrastructure is the endgame
When stablecoins are widely used around the world, to the extent that people stop talking about them as a “promising technology”, then they will have already become invisible infrastructure.
If stablecoins aren’t there already, then they must be close. 2025 proved stablecoins could handle tens of trillions in value flows, becoming popular instruments of settlement and achieving widespread validation in the process. With their velocity established, time will tell who captures and governs the infrastructure from here.
The experiment is over. The business can now truly begin.
Opinion by: Jeff Handler, co-founder at OpenTrade.
BNB Chain’s 0 Fee Carnival continues for USDC, USD1, and U tokens. Over $4.5M in gas fees covered so far across withdrawals, transfers, and bridging.
BNB Chain has extended its zero-fee promotion for stablecoin transactions through April 30, 2026, giving users another month to move USDC, USD1, and U tokens without paying gas costs.
The network has already subsidized over $4.5 million in transaction fees since the promotion began, effectively returning that value directly to users.
What’s Covered
The promotion eliminates fees across three key activities: exchange withdrawals, wallet-to-wallet transfers, and cross-chain bridging.
Eight major exchanges now support zero-fee withdrawals to BNB Chain, including Binance, Bitget, MEXC, Bitmart, Ourbit, BingX, LBank, and HTX. Minimum withdrawal thresholds range from $5 to $20 depending on the platform and asset. HTX has committed to zero-fee USD1 withdrawals permanently.
Wallet transfers work differently by asset. USD1 and U get unlimited free transfers, while USDC users receive two free transactions daily. The minimum transfer sits at just $0.10, and supported wallets include Trust Wallet, SafePal, TokenPocket, and Binance Wallet.
Bridging from other chains comes through Celer cBridge and Meson.fi, covering routes from Ethereum, Arbitrum, Polygon, Avalanche, Optimism, and Tron.
Why This Matters Now
BNB Chain claims roughly 40% of all stablecoin transaction volume—a significant chunk of a market where USDC alone commands a $77 billion market cap. The timing aligns with broader stablecoin momentum: Circle shares jumped 18% on March 30 following positive regulatory developments around the CLARITY Act, while Ethereum fees spiked 36% that same day due to rising USDC settlement demand.
For users, the math is straightforward. Every transaction on competing networks costs gas. On BNB Chain through April, those same transactions cost nothing.
The Fine Print
Free transfers only apply to direct wallet-to-wallet sends on BSC—smart contract interactions don’t qualify. The daily limit on USDC wallet transfers (two per day) could frustrate power users, though unlimited USD1 and U transfers offer an alternative.
Bridging requires going through the designated partners. Celer handles routes from five major networks, while Meson adds Tron support with a 100% fee rebate model.
The promotion deadline is April 30, 2026 at 23:59 UTC. Whether BNB Chain extends again depends on how aggressively they want to defend their stablecoin market share—and how much they’re willing to spend doing it.
The United Kingdom’s move to pause political donations in cryptocurrency is colliding with rising digital asset awareness among younger people, according to a new survey shared with Cointelegraph.
Research by Coinbase Institute and JL Partners, shared with Cointelegraph, found that crypto, led by Bitcoin (BTC), has overtaken traditional banking products as many young people’s entry point to understanding money, risk and financial opportunity. Just 43% recognize a Stocks & Shares Individual Savings Account and 20% a Help to Buy ISA, reflecting what the report describes as a “crypto first, TradFi second” re-ordering of financial literacy.
The findings come as the United Kingdom advances plans for a moratorium on political donations in crypto, highlighting a potential disconnect between how young people engage with finance and how Westminster regulates it.
Coinbase’s vice president of international policy, Tom Duff Gordon, told Cointelegraph that the UK is “sitting on an estimated 1.3 million new voters” as the government advances legislation to lower the voting age to 16, adding that crypto is becoming an issue political parties need on their agenda.
Crypto is a voting factor in the UK. Source: Coinbase Institute
Nearly half of young people said they would trust a political party more if it showed an understanding of crypto and blockchain technology, while 26% said they were more likely to support one that backed pro-innovation crypto policy. More under-25s now recognize Bitcoin than any ISA, savings bond or other legacy savings product, with 65% awareness making BTC the most recognized financial product among this group.
Crypto donations pause jars with traceability claims
That puts crypto policy on a potential collision course with the current donations moratorium. In a LinkedIn post last week, Duff Gordon argued that crypto assets “hold out the prospect of perfect traceability,” with transactions recorded onchain and potentially far more transparent than fiat currency.
He noted that the UK Financial Conduct Authority already operates a registration regime for crypto firms to enforce Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) rules, and suggested requiring political crypto donations to flow via FCA-registered companies, with the same caps and permissibility rules that apply to cash. In his view, the pause risks perpetuating stigma around crypto and delaying a more proportionate regulatory approach.
Parties ignore young crypto voters at their peril
For politicians, the message is becoming harder to ignore. The right honourable Alun Cairns, former Cabinet minister and vice-chair of the Blockchain All Party Parliamentary Group, told Cointelegraph that a new generation of voters is coming through with “fundamentally different expectations about money, technology and opportunity,” and that they will “reward those who understand that shift.”
He said that digital assets and financial innovation are becoming central to winning over upcoming generations, and that “as a Conservative, my party needs to keep pace with changing demographics.”
The survey also found that around two-thirds of young people want the government to offer financial education on crypto, while 43% said they would trust a party more if it embraced new technology like crypto, rising to 58% of Reform and 46% of Labour voters.
Crypto supporters, Duff Gordon added, are an “influential constituency,” and parties that fail to engage with them risk losing relevance with future voters.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
AAVE price prediction shows oversold conditions at $96.34 with RSI at 34.65. Technical analysis suggests potential bounce to $101-108 range if $93 support holds, despite bearish momentum.
While specific analyst predictions from the past 24 hours are limited, recent forecasts from established prediction platforms provide insight into AAVE’s trajectory. According to CoinCodex’s March 27 analysis, AAVE is currently trading 21.34% below their April 1 prediction target of $128.55, suggesting significant upside potential if technical conditions align.
Blockchain.News noted in their March 25 assessment that “AAVE price prediction shows bullish momentum building” with technical analysis pointing toward $130-$135 targets if key resistance levels break. Meanwhile, CoinPriceForecast maintains their projection for AAVE to reach $100 by mid-2026, representing a modest 3.8% upside from current levels.
AAVE Technical Analysis Breakdown
AAVE’s current technical picture presents a mixed but potentially oversold scenario. Trading at $96.34, the token sits well below all major moving averages, with the 200-day SMA at $178.21 highlighting the significant distance from longer-term bullish territory.
The RSI reading of 34.65 indicates AAVE is approaching oversold conditions without quite reaching the traditional 30 threshold. This neutral-to-bearish RSI suggests limited immediate selling pressure while leaving room for a potential bounce.
AAVE’s position within the Bollinger Bands tells a compelling story. At 0.1075 on the %B indicator, the token trades extremely close to the lower band at $93.00, with the current price just $3.34 above this critical technical support. The middle band at $108.55 represents the first major resistance hurdle.
The MACD histogram at 0.0000 with both MACD and signal lines at -5.0004 confirms bearish momentum has stalled, potentially setting up for a momentum shift. However, the Stochastic indicators (%K at 12.24, %D at 9.79) remain deeply oversold, supporting the case for a technical rebound.
Aave Price Targets: Bull vs Bear Case
Bullish Scenario
An AAVE price prediction favoring the bulls centers on a successful defense of the $93.00 Bollinger Band support. If this level holds, initial targets include the immediate resistance at $98.87, followed by the pivot point at $97.47 already achieved.
The primary bullish target sits at $101.41 (strong resistance), representing a 5.3% gain from current levels. A break above this level could trigger momentum toward the 20-day SMA at $108.55, offering 12.7% upside potential.
For this Aave forecast to materialize, traders should watch for RSI recovery above 40 and MACD histogram turning positive, confirming momentum shift.
Bearish Scenario
The bearish case for AAVE hinges on a breakdown below the critical $93.00 support level. Such a move would likely trigger stops and accelerate selling toward the strong support at $93.53, though this level sits paradoxically above the Bollinger Band support.
Given the daily ATR of $6.01, a break below $93.00 could see AAVE testing the $87-90 range, representing 8-10% downside risk. The confluence of oversold conditions and key support makes a deeper decline less probable without significant market-wide stress.
Should You Buy AAVE? Entry Strategy
Current technical conditions suggest AAVE may offer an attractive risk-reward setup for patient traders. The optimal entry strategy involves scaling into positions near current levels with stops below $92.50 to account for potential false breaks of the $93.00 support.
For aggressive traders, entries at $93.50-$94.50 offer the best risk-reward ratio, targeting the $98.87-$101.41 resistance cluster. Conservative investors might wait for confirmation above $98.87 before initiating positions, sacrificing some upside for reduced downside risk.
Position sizing should reflect the high volatility evidenced by the $6.01 daily ATR, suggesting 2-3% portfolio allocation maximum for this AAVE price prediction play.
Conclusion
This AAVE price prediction suggests a 65% probability of a technical bounce toward $101-108 over the next 1-2 weeks, contingent on holding the $93.00 Bollinger Band support. The oversold RSI conditions and proximity to key technical support levels favor a short-term rebound, though medium-term challenges remain given the distance from major moving averages.
The Aave forecast for the next month points to a $93-128 trading range, with the ultimate direction dependent on broader crypto market sentiment and successful navigation of the immediate technical levels outlined above.
Disclaimer: This analysis is for educational purposes only. Cryptocurrency investments carry substantial risk of loss. Always conduct your own research and consider your risk tolerance before making investment decisions.
Bitcoin’s recovery is expected to face selling near $69,000, but if the bulls prevail, a rally to $74,508 is possible.
Most major altcoins remain below their resistance levels, indicating that the bears continue to exert pressure.
Bitcoin (BTC) rose above $68,000, but the bulls are struggling to sustain the higher levels. Sellers are expected to exert pressure to achieve a negative monthly close in March. That will result in six consecutive months of losses for the first time since the 2018 bear market.
Analysts remain increasingly bearish on BTC’s prospects in the short term. Analyst Willy Woo said in a post on X that BTC may bottom between $46,000 and $54,000 according to various on-chain models.
Crypto market data daily view. Source: TradingView
The deeper the fall from the all-time high, the longer it is likely for BTC to take to record a new all-time high. According to an Ecoinometrics’ model, if BTC holds the $60,000 low, a full recovery is expected to happen in roughly 300 days from the October 2025 peak of $126,000. About 175 days have passed since BTC’s all-time high, leaving around 125 days for the full recovery to happen. If BTC falls to the $40,000 to $45,000 range, the recovery may stretch further into Q2 2027, as every 10% drawdown adds 80 days to the recovery duration.
Will buyers be able overcome the resistance levels in BTC and the major altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
S&P 500 Index price prediction
The S&P 500 Index (SPX) turned down from the 20-day exponential moving average (6,620) on Wednesday, indicating that bears remain in command.
Sellers will attempt to sink the price to the 6,147 level, which is likely to attract solid buying by the bulls. A bounce off the 6,147 level may face selling at the 20-day EMA. If the price turns down sharply from the 20-day EMA, the bears will again attempt to sink the index below the 6,147 level. If they succeed, the next stop may be the 5,943 level.
On the other hand, a break and close above the 20-day EMA suggests that the bears are losing their grip. The index may then rally to the 50-day simple moving average (6,803).
US Dollar Index price prediction
The US Dollar Index (DXY) bounced off the 20-day EMA (99.40) on Wednesday, signaling a positive sentiment.
Buyers will attempt to strengthen their position by maintaining the price above the 100.54 overhead resistance. If they manage to do that, the index may start a new up move to the 102 level and later to the 103.54 level.
Time is running out for the bears. They will have to defend the 100.54 level and swiftly pull the price below the 20-day EMA to weaken the bullish momentum. The price may then slump to the 50-day SMA (98.25).
Bitcoin price prediction
BTC closed below the support line of the ascending triangle pattern on Sunday, but the bears could not sustain the lower levels.
The bulls have pushed the BTC price back above the support line and are attempting to pierce the moving averages. If they succeed, it suggests that the break below the support line may have been a bear trap. The BTC/USDT pair may rally to the $74,508 to $76,000 resistance zone.
To retain the advantage, sellers will have to successfully defend the moving averages and swiftly pull the price below the $65,000 level. That clears the path for a drop to the $62,500 to $60,000 support zone.
Ether price prediction
Ether (ETH) closed below the 50-day SMA ($2,040) on Friday, but the bears could not sink the price below the $1,916 support.
The bulls are attempting to push the ETH price above the moving averages and get back into the game. If they can pull it off, the possibility of a rally to $2,400 increases. Sellers will attempt to halt the up move at $2,400, but if the buyers bulldoze their way through, the next stop may be $2,600.
This positive view will be negated in the near term if the ETH/USDT pair turns down and breaks below the $1,916 level. That opens the doors for a drop to the $1,750 support.
BNB price prediction
BNB (BNB) has been trading below the moving averages, but the bears could not pull the price to the $570 support.
The bulls are attempting to start a recovery, which is expected to face resistance at the moving averages. If the BNB price turns down from the moving averages, the risk of a drop to $570 increases.
Contrarily, a close above the moving averages suggests that the BNB/USDT pair may remain inside the $570 to $687 range for some more time. Buyers will be back in the driver’s seat on a close above the $687 resistance.
XRP price prediction
XRP (XRP) remains below the moving averages, indicating that the bears continue to exert pressure.
The gradually downsloping moving averages and the RSI in the negative territory indicate that the bears have the upper hand. Buyers will attempt to defend the $1.27 level, but if the support cracks, the XRP/USDT pair may descend to $1.11.
Contrary to this assumption, if the XRP price turns up sharply and breaks above the moving averages, it suggests that selling dries up at lower levels. The pair may then march toward the $1.61 level.
Solana price prediction
Solana (SOL) remains stuck inside the $76 to $95 range, indicating a balance between supply and demand.
The flattish moving averages and the RSI just below the midpoint do not give a clear edge either to the bulls or the bears. Buyers will have to shove the SOL price above the $95 resistance to start a rally to the $117 level.
On the contrary, a break and close below the $76 level tilts the advantage in favor of the bears. The SOL/USDT pair may then retest the Feb. 6 low of $67.
That suggests the bears are selling on every minor relief rally to the moving averages. If the DOGE price again turns down from the moving averages, it increases the risk of a break below the $0.09 support. The DOGE/USDT pair may then plunge to the $0.08 level.
Instead, if the price continues higher and breaks above the moving averages, it signals that the bulls remain buyers near the $0.09 level. The pair may then rally to $0.11 and subsequently to $0.12.
Cardano price prediction
Cardano (ADA) closed below the $0.25 support on Friday, indicating that the bears are in control.
Buyers are trying to push the ADA price back above the $0.25 level, but the bears have held their ground. That suggests the sellers are attempting to flip the $0.25 level into resistance. If they manage to do that, the ADA/USDT pair may plummet to the Feb. 6 low of $0.22.
The bulls will have to swiftly thrust the price above the moving averages to trap the aggressive bears. That may drive the pair to the downtrend line. Sellers are expected to vigorously defend the downtrend line, as a close above it signals a potential short-term trend change.
Hyperliquid price prediction
Buyers are attempting to sustain the Hyperliquid (HYPE) price above the 20-day EMA ($37.86), but the recovery lacks strength.
If the HYPE price dips below the 20-day EMA and the $36.77 level, it suggests that the bulls have given up. That may pull the HYPE/USDT pair to the 50-day SMA ($33.73), which is likely to act as strong support.
Alternatively, if the price turns up from the current level, it is expected to face resistance at $41.59 and then at $44. Buyers will have to scale the $44 level to signal the resumption of the up move toward $50.
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. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Iran tensions continued to fuel market volatility, with US President Donald Trump delivering fresh ultimatums over the Strait of Hormuz blockade while keeping details sparse.
In a post on Truth Social, Trump demanded that Hormuz be “immediately ‘Open for Business’” while threatening renewed attacks on Iranian energy infrastructure.
Iran in turn suggested that markets discount news delivered prior to the open as a “reverse indicator.”
“We are in the most unusual times in market history,” trading resource The Kobeissi Letter responded in analysis on X.
S&P 500 futures 30-minute chart. Source: The Kobeissi Letter/X
Oil preserved the $100 mark into Monday, while US stocks struggled to make gains as the week began.
CFDs on WTI crude oil four-hour chart. Source: Cointelegraph/TradingView
Commenting on BTC price action, trading company QCP Capital maintained the view that despite its losses, BTC/USD was still weathering the macro storm impressively.
“BTC has outperformed both gold and major equities since the Iran conflict began, even as traditional markets have struggled under geopolitical pressure,” it wrote in its latest “Market Color” update.
QCP said it was “notable” that the $65,000-$70,000 range was holding.
BTC price perspectives brighten
Continuing the more positive tone, crypto trader Michaël Van de Poppe called the lower end of Bitcoin’s local range an “entry zone.”
“Great bounce upwards, but nothing confirmed as of yet on Bitcoin. All depends on macroeconomic events; however, I’d rather see a breakout above $71K for confirmation,” he told X followers about the rebound from the March lows.
“On the other hand, a classic little sweep to $65K just before the push upwards would signal that we’re going to get that momentum. Clearly, the lower end of the range is the entry zone. Also, clearly, over a longer timeframe, this is a very cheap opportunity to accumulate more Bitcoin.”
BTC/USDT one-day chart. Source: Michaël Van de Poppe/X
Cointelegraph continues to report on trader consensus over a fresh leg down for BTC/USD as its bear flag breaks down for the second time in 2026.
This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
A majority of crypto users remain unclear on basic tax rules, with fewer than half correctly identifying when transactions become taxable, a new survey found.
Only 49% of respondents correctly understand that crypto becomes taxable when it is sold, while nearly a quarter believe simple transfers can trigger tax events, according to a 2026 Crypto Tax Readiness Report published by Coinbase and CoinTracker.
The findings come from a survey of 3,000 US crypto users conducted between Sept. 9 and Oct. 3, ahead of the 2025 tax reporting season.
When is crypto taxable. Source: Coinbase
The survey noted that crypto investors show a clear willingness to comply with tax rules, with 74% saying they are aware that crypto is taxable, while 65% said they have already reported activity in the past. “This refutes the misconception of widespread crypto tax avoidance,” the survey states.
The survey also pointed to some key challenges complicating crypto tax reporting. For one, crypto investors often hold assets across multiple platforms, with an average of 2.5 wallets or exchanges and 83% using self-custody. This fragmentation makes it harder to track cost basis, which is needed to calculate gains and losses.
New reporting rules add to the challenge. From the 2025 tax year, brokers will issue Form 1099-DA but won’t include cost basis, leaving users to reconcile transactions themselves across platforms that don’t share data.
56% of crypto users say their knowledge of crypto tax reporting is good. Source: Coinbase
Despite these challenges, most users rely on traditional tools. Around 78% use general tax software and 52% turn to accountants, while only 8% use crypto-specific tax services. At the same time, interest in AI is growing, with nearly half of respondents saying they would use it to calculate taxes and 30% open to relying on it for the entire process.
Earlier this month, the IRS proposed new rules that would require crypto exchanges to deliver tax forms electronically, removing the option for paper copies. Under the proposal, brokers could end relationships with users who refuse digital delivery, and users would no longer be able to withdraw consent once given.
Exchanges must continue issuing Form 1099-DA to report transaction proceeds, though cost basis tracking will remain the responsibility of investors.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Hong Kong’s 2026-27 budget marks a shift from experimental digital bond projects to the direct integration of tokenized issuance and settlement into the city’s regulated financial market infrastructure.
CMU OmniClear, a subsidiary of the Hong Kong Monetary Authority, will build a digital asset platform to support tokenized bond issuance and settlement. This embeds digital securities within Hong Kong’s established clearing and post-trade framework.
Hong Kong has issued multiple tokenized government bonds, including a HK$10 billion digital bond in 2025. Authorities plan to make such offerings a regular feature to deepen market participation and improve liquidity.
Hong Kong is introducing stablecoin licensing, digital asset dealer and custodian regulations and compliance rules aligned with global tax transparency standards to support a fully regulated digital asset market.
For years, tokenized bonds were discussed as a future upgrade to capital markets. In Hong Kong, that transition is now moving into practice.
The city’s 2026-27 budget marks a pivotal turning point. Tokenization is no longer confined to isolated experiments but is being integrated into the heart of Hong Kong’s financial ecosystem. By embedding issuance and settlement directly into its post-trade systems, the city is moving beyond one-off digital deals to create a standardized, regulated environment.
This article explores how Hong Kong is integrating tokenized bonds into its financial infrastructure through a new digital platform developed by CMU OmniClear, a subsidiary of the Hong Kong Monetary Authority (HKMA), regular government issuances and supportive regulations. This development reflects a shift from experimental pilots to scalable, institutional-grade digital capital market systems.
Hong Kong’s advancing tokenized bond program
Hong Kong has already completed several rounds of tokenized government bond issuances. In Q4 2025, the government launched its third series, valued at HK$10 billion, approximately US$1.28 billion. Authorities have since confirmed that these tokenized bond offerings will continue on a regular basis.
The 2026-27 budget, however, marked a significant escalation.
Financial Secretary Paul Chan stated that CMU OmniClear Holdings, a wholly owned subsidiary of the HKMA, will develop a dedicated digital asset platform. The platform is designed to handle both the issuance and settlement of tokenized bonds.
Importantly, the system is being built with long-term expansion in mind. It will:
Be progressively extended to support a wider range of digital assets beyond government bonds
Establish interoperability with tokenization platforms in other regional jurisdictions
Become fully integrated into Hong Kong’s broader post-trade financial ecosystem
This final aspect, deep integration into core market infrastructure, is what elevates tokenization from experimental pilots to a foundational element of the financial system.
CMU OmniClear: From experiment to core infrastructure
CMU OmniClear is far from a standalone startup or proof-of-concept project. It operates as an integral part of Hong Kong’s established clearing and settlement framework. Regulators have entrusted tokenized bond settlement to an entity directly linked to the HKMA. They have integrated digital securities into the same system that already processes conventional financial instruments.
This strategic move reshapes the tokenization story in three key ways:
Standardization replaces experimentation: Rather than relying on custom-built, one-off digital bond structures, issuance and settlement can now follow uniform regulatory rules and proven operational protocols.
Clear regulatory oversight: With supervision anchored directly under the central banking authority, legal and compliance uncertainty is significantly reduced.
Built-in scalability: Core market infrastructure is designed to handle institutional-scale volumes, not just small-scale trials or limited pilots.
Tokenization is no longer an add-on or side project. It is becoming embedded in the core plumbing of Hong Kong’s financial system.
Did you know? The concept of tokenized bonds builds on the broader idea of tokenizing real-world assets (RWAs). Trillions of dollars’ worth of traditional financial assets, such as bonds, real estate and funds, could eventually move onto blockchain-based infrastructure.
Government issuance: Already scaling
Hong Kong’s tokenized bond program is already demonstrating meaningful scale. Rather than building infrastructure in anticipation of future demand, Hong Kong is responding to existing market interest.
The government’s third tokenized bond issuance, completed in late 2025, reached a record size of HK$10 billion, approximately US$1.28 billion to US$1.3 billion, marking the world’s largest digital bond offering to date. This followed earlier digital bond issuances that also attracted strong investor demand. Authorities have now pledged to make tokenized bond issuance a regular practice rather than relying on occasional pilots.
This steady approach delivers several key benefits:
Builds investor comfort and familiarity with tokenized products
Draws participation from conventional asset managers
Reinforces that tokenization has strong official policy support, moving it beyond experimental status
Consistent and predictable issuance is essential to developing deeper, more liquid markets.
Beyond bonds: Building a digital asset ecosystem
Hong Kong’s ambitions extend well beyond tokenized bonds. The 2026-27 budget outlines additional regulatory steps to foster a broader digital asset ecosystem.
Stablecoin licensing regime
The HKMA is moving toward issuing its inaugural set of licenses for fiat-referenced stablecoins, with the first approvals expected in early 2026.
Stablecoins are not inherently tied to bond settlement. However, the introduction of regulated digital fiat equivalents could enable compliant and efficient settlement mechanisms for tokenized securities and other digital assets.
Did you know? The first blockchain bond issued by a multilateral institution was launched by the World Bank in 2018. Called “Bond-i” (Blockchain Operated New Debt Instrument), it used distributed ledger technology to manage bond issuance and settlement.
Licensing for digital asset dealers and custodians
Hong Kong is advancing its regulatory framework by introducing dedicated licensing regimes for key digital asset service providers.
The government plans to table legislation in 2026 establishing licensing requirements for:
digital asset dealing platforms, including over-the-counter (OTC) brokers, block traders, and other intermediaries involved in buying, selling, or exchanging virtual assets
custodian service providers focused on safeguarding private keys, segregating client assets, and ensuring strong security and operational controls
These measures will bring a broader range of participants under formal supervision. Dealers will face standards comparable to those applied to conventional securities firms, while custodians will be subject to stringent requirements for asset protection and key management.
By covering issuance, trading, custody, and reporting activities, the regime creates a fully supervised ecosystem for tokenized bond markets and other digital securities, enhancing investor protection and market integrity.
Alignment with global tax transparency standards
To reinforce its commitment to international compliance, Hong Kong is amending the Inland Revenue Ordinance to adopt the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF).
The implementation will apply to reporting by crypto-asset service providers (CASPs), starting in 2027. Information exchanges would begin in 2028, enabling the automatic exchange of tax-related data on crypto transactions with partner jurisdictions.
The move underscores a clear policy stance. Hong Kong’s tokenized and digital asset markets are being designed to be fully interoperable, transparent, and aligned with global standards. These are essential prerequisites for attracting and retaining institutional capital on a sustainable basis.
Did you know? Traditional bond settlement often takes two business days (T+2) in many markets. Tokenized bonds could potentially enable near-instant settlement, reducing counterparty risk and freeing up capital more quickly.
The liquidity layer: Building deeper regulated crypto markets
In early 2026, the Hong Kong Securities and Futures Commission (SFC) issued new guidance enabling licensed virtual asset brokers to provide margin financing for digital assets. Initially, the framework focused on Bitcoin (BTC) and Ether (ETH) collateral, with safeguards for creditworthy clients. The SFC also published a high-level framework allowing licensed virtual asset trading platforms (VATPs) to offer leveraged perpetual contracts.
These developments significantly enhance market liquidity in a controlled manner while preserving strong investor protections and risk management standards. They form part of a multilayered strategy to:
Broaden the scope of regulated digital asset markets
Uphold institutional-grade guardrails and compliance
More seamlessly bridge digital and traditional finance
Tokenized bonds are not standalone experiments. They sit within a comprehensive, integrated digital financial architecture designed for scale and sustainability.
How tokenized bond infrastructure operates in practice
Tokenized bond infrastructure combines several interconnected layers built on blockchain or distributed ledger technology:
Issuance: The issuer originates the bond as a digital token directly on a permissioned or regulated ledger, embedding coupon terms, maturity and covenants into smart contracts or digital records.
Primary allocation: Subscriptions and allocations occur through regulated intermediaries, such as banks, brokers or platforms, ensuring Know Your Customer (KYC) and AML compliance and orderly distribution to qualified investors.
Settlement and custody: True delivery-versus-payment (DvP) is achieved through integrated systems managed by recognized market infrastructure providers, including central securities depositories or clearing houses adapted for tokenization. Custody is handled by licensed providers with segregated assets and secure key management.
Post-trade lifecycle: Ongoing events, such as coupon or interest payments, principal redemptions at maturity, and the handling of corporate actions, are automated through programmable logic. This reduces manual intervention, settlement risk and operational costs.
The critical distinction between early pilots and true infrastructure lies in repeatability, institutional integration, and scale. Mature infrastructure enables frequent, large-volume issuances while interfacing smoothly with existing clearing, settlement, custody and reporting systems. This creates the foundation for liquid, efficient secondary markets.
Why this matters for global markets
Hong Kong’s strategy reflects deliberate, long-term positioning in the changing financial sector.
By integrating tokenized bond issuance and settlement into infrastructure closely aligned with the central bank, and by fostering connectivity with regional platforms and counterparties, Hong Kong is working to:
Solidify its status as Asia’s leading regulated digital asset and tokenized securities hub
Channel meaningful cross-border institutional capital flows into and through the city
Offer institutional investors a compliant, scalable and well-regulated tokenization ecosystem
Hong Kong is competing on regulated reliability, predictable rule-making and institutional-grade infrastructure. These factors matter significantly to large asset managers, banks and sovereign wealth funds.
Prevailing risks and challenges
Implementing ambitious infrastructure does not automatically eliminate structural challenges. Several significant hurdles remain:
Achieving genuine interoperability across different tokenization platforms, protocols and ledgers
Securing legal and regulatory harmonization with other major jurisdictions to enable smooth cross-border issuance, trading and settlement
Keeping AML, KYC, sanctions and broader compliance frameworks aligned with the rapid pace of technological change
Avoiding liquidity fragmentation, where trading volumes are split inefficiently across siloed digital systems, undermining market depth
Building the digital financial rails is only the first phase. Sustained market adoption, active secondary trading, broad institutional participation and organic liquidity growth will determine whether Hong Kong’s vision translates into lasting global relevance.
Cointelegraph maintains full editorial independence. Guides are produced without influence from advertisers, partners or commercial relationships. Content published in Guides does not constitute financial, legal or investment advice. Readers should conduct their own research and consult qualified professionals where appropriate.
Update March 30, 1:20 p.m. UTC: This article has been updated to include a section on the wider tokenized commodities market.
Trilitech, a London-based development company focused on the Tezos ecosystem, launched Metals.io on Monday, a new platform for trading tokenized commodities including uranium and gold, according to an announcement shared with Cointelegraph.
The platform expands a commodities push that Trilitech and the broader Tezos ecosystem began with Uranium.io, a retail-facing uranium marketplace launched in December 2024 on Etherlink, Tezos’ Ethereum Virtual Machine-compatible layer 2.
At launch, Metals.io is set to offer xU3O8 tokenized uranium, tokenized gold and Noemon Tech’s RARE token. Uranium.io describes xU3O8 as a tokenized physical uranium product, while RareTech materials describe RARE as a basket of strategic metals.
According to the release, the launch responds to growing investor interest in strategic materials tied to industrial use and artificial intelligence-related infrastructure demand. That logic echoes the pitch behind Uranium.io’s 2024 debut, which Tezos framed around uranium’s role in powering nuclear energy and supporting rising electricity demand tied to AI.
Metals.io aims to reduce the investment barriers to uranium trading, which was previously reserved for institutional investors. The new platform is built on the same underlying technology as uranium.io, launched by Tezos in December 2024.
“One of the founding principles behind the launch of that platform was to level the playing field by making a previously inaccessible critical asset widely available to all investors,” Ben Elvidge, head of commercial applications at Trilitech, told Cointelegraph.
Elvidge said around 9,000 retail investors have acquired the tokenized uranium product since the platform’s launch.
In August 2025, Digital asset custody firm Hex Trust integrated Tezos’ Etherlink to offer institutional custody for tokenized uranium. In January of that year, Transak also partnered with the platform to let retail investors buy tokenized uranium via crypto or credit cards for as little as $10, a sharp decrease from the $4.2 million minimum over-the-counter market limit.
Crypto exchanges enter tokenized commodities
Investor demand for tokenized commodities is on the rise. Tokenized commodities surged to $7.7 billion in cumulative market capitalization on March 6, but retraced to $7 billion as of Monday, according to data from RWA.xyz.
Tokenized gold represented the majority of this value, with Tether Gold (XAUT) accounting for 38% of the market share at $2.5 billion and Paxos Gold (PAXG) accounting for 34% at $2.2 billion.
Julio Moreno, head of research at analytics platform CryptoQuant, attributed the rising tokenized commodities demand to tariff-related uncertainty, higher interest rates and stronger safe-haven demand in a report published on March 5, adding that “crypto exchanges are becoming global venues for TradFi derivatives.”
Tokenized commodities’ total market capitalization. Source: RWA.xyz
More crypto companies are launching tokenized products. On Wednesday, Vienna-based crypto broker Bitpanda launched Vision Chain, an Ethereum Layer-2 for European banks and fintech to issue tokenized assets under Europe’s Markets in Crypto-Assets Regulation (MiCA) and Markets in Financial Instruments Directive (MiFID II).
On March 20, Coinbase launched stock perpetual futures for eligible non-US users, extending round-the-clock access to equities alongside crypto and prediction markets. Crypto exchanges Binance and Kraken have also launched tokenized perpetual futures trading for non-US traders.
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