Vitalik Buterin is openly challenging long-held assumptions about Ethereum’s layer-two ( L2) strategy, arguing that the original vision for L2s no longer fits a network where the base layer itself is scaling rapidly. Vitalik Buterin Calls for Specialized Appchains Over Generic L2s In a recent X post, Vitalik Buterin argued that two developments have quietly […]
Open Banking Faces Imminent decision on its Next Chapter
Smart Data Group (SDG) has issued a rallying call to the UK’s open banking ecosystem, urging stakeholders to back an independent, industry-led approach for the sector’s next phase.
Following the Financial Conduct Authority’s (FCA) call for industry submissions, SDG is advocating for a model it claims will reduce costs, restore momentum, and lay the foundations for Open Finance.
A new ‘Future Entity’
The debate centres on the design of the “Future Entity” that will oversee open banking under the UK’s Long-Term Regulatory Framework.
Developed through consultation with banks, fintechs, and consumer groups, SDG’s proposal advocates for a clear separation of roles. This includes industry-led design and mobilisation, alongside a “genuinely independent” Future Entity capable of operating in the interests of the entire ecosystem.
The group argues its model is deliberately lean, with analysis suggesting core functions can be delivered at a “significantly lower cost” than historic arrangements while maintaining neutrality and resilience.
Paul Scully, chair of Smart Data Group’s Advisory Board, commented: “Open Banking has delivered meaningful benefits, but the next phase must be built for what comes next, not constrained by legacy structures. Our approach is about securing independence, pace, and confidence, while creating a platform that can evolve into Open Finance and support the UK’s wider Smart Data ambitions.”
Avoiding legacy constraints
The proposal has garnered support from various quarters of the industry, including those outside traditional representative structures who fear a future body could be dominated by specific interests.
Vinay Jayaram, founder and CEO of Envizage, said: “The next phase of Open Banking requires a genuinely fresh start. The Future Entity must be independent, neutral, and able to act in the interests of the whole ecosystem, rather than being shaped by legacy incentives or dominated by any single group.”
Jayaram added that SDG’s emphasis on “balanced governance” offered the most credible route to unlocking the full potential of the sector.
UBS Building Digital-Asset Infrastructure, Eyes Bitcoin Services
UBS Group AG is exploring ways to offer bitcoin and crypto access to individual clients, CEO Sergio Ermotti said during the bank’s earnings call on Wednesday.
Ermotti said the Zurich-based lender is building the core infrastructure needed for digital-asset services while evaluating targeted products, ranging from crypto access for wealthy clients to tokenized deposit solutions for corporate customers.
“We are building out the core infrastructure and exploring targeted offerings from crypto access for individual clients to tokenized deposit solutions for corporates,” Ermotti said.
The UBS chief stressed the bank does not plan to be a first mover in blockchain-based technology.
Instead, UBS is pursuing what Ermotti described as a “fast follower” strategy in tokenized assets, with expansion expected to unfold over the next three to five years alongside its traditional banking business.
It was reported last month that UBS is in the process of selecting partners for a crypto offering aimed at some of its high-net-worth clients, marking a shift for a bank that has historically taken a cautious stance on virtual tokens.
Like many global lenders, UBS has so far focused its digital-asset work on blockchain infrastructure for tokenized funds and payments.
Banks have generally moved slowly into areas like crypto trading, in part due to stricter capital requirements under the Basel III framework.
Other European banks like UBS exploring bitcoin
Other banks are also starting to embrace bitcoin and crypto offerings. DZ Bank recently secured MiCAR approval and will roll out its “meinKrypto” platform across cooperative banks, allowing customers to trade and custody Bitcoin and other digital assets directly within existing banking apps, while also joining a consortium developing a regulated euro stablecoin.
Also, the Sparkassen-Finanzgruppe plans to launch Bitcoin and crypto trading for private customers by the summer of 2026, with technical support from DekaBank, marking a reversal from its earlier skepticism toward digital assets and crypto.
Also earlier this week, ING Deutschland, one of Germany’s largest retail banks, said they will began offering retail clients access to cryptocurrency-linked exchange-traded notes (ETNs) and products, allowing customers to gain exposure to bitcoin and other crypto directly through their existing securities accounts.
According to information published on ING’s website, the products are physically backed exchange-traded instruments issued by established asset managers including the likes of 21Shares, Bitwise, and VanEck.
Bitcoin-native USDT protocol joins CTDG Dev Hub
Bitcoin has long served a simple purpose: storing and transferring value. The blockchain’s inherent limitations in scalability and programmability prevented use cases like high-frequency payments and smart contracts.
Launched in 2018, the layer-2 solution Lightning Network introduced noticeable improvements in scalability. It takes some of the burden offchain by creating side channels between the sender and receiver.
The model settles transactions faster, with lower fees. Rendering Bitcoin feasible for daily use, the solution spurred the development of many payment apps on the blockchain.
Programmability also arrived in Bitcoin through secondary protocols, such as RGB, an open-source solution designed to expand Bitcoin’s capabilities. The protocol enables the creation of smart contracts and other digital assets on Bitcoin through private, offchain transactions.
RGB powers decentralized applications (DApps) and tokenization, and allows digital assets other than Bitcoin (BTC) to exist on top of the original blockchain.
Bitcoin-native USDT transactions
CTDG Dev Hub, a collaborative platform for blockchain developers working on protocol ideas, has added Utexo as a new participant. The project examines how stablecoin transfers could be represented natively on Bitcoin by combining the Lightning Network’s payment channels with RGB’s client-side asset model. By focusing on interoperability between Bitcoin’s scaling and asset layers, Utexo aligns with DevHub’s goal of supporting experimental infrastructure research and practical developer-driven use cases.
Before the introduction of native solutions, the prevailing practice for using USDT on Bitcoin was utilizing methods like wrapping and bridging, which add intermediaries to the process and increase security risks.
Utexo moves USDT on Bitcoin-native rails instead by combining Lightning’s payment flow with RGB’s asset transfer model. Through RGB, USDT is issued and transferred under a client-side validation model, which keeps most of the transaction details off Bitcoin’s base layer.
Meanwhile, the Lightning Network enables fast and low-cost execution. Bitcoin’s layer-1 only serves as the security anchor that ultimately settles transactions and prevents double-spending.
That combination is meant to avoid the extra trust assumptions that come with wrapping and bridging while still keeping the experience fast. In other words, speed comes from Lightning, asset logic comes from RGB and the security stays tied to Bitcoin.
In Utexo’s design, separating execution from base-layer congestion can make cost behavior less sensitive to Bitcoin’s mempool conditions, since most activity occurs off-chain and Bitcoin is used only for final settlement. This structural decoupling is one reason some implementations aim for more stable cost behavior as throughput grows.
Utilizing the Lightning Network or RGB normally requires a good amount of manual labor. Users have to set up and run a Lightning node, open and manage channels, ensure liquidity, handle routing failures and monitor payment status.
On the RGB side, they also need to manage issuance and transfers, exchange the data needed for client-side validation and keep track of state so balances remain accurate.
The project brings these steps into a single integration flow available via an SDK and REST API. It exposes programmatic access to Lightning execution, routing and failure handling, as well as RGB asset issuance, transfers and state transitions, enabling interaction with both layers through one interface.
Bitcoin developers gain a hub
Cointelegraph has been taking an active role in blockchain governance and development through its initiative, Cointelegraph Decentralization Guardians.
As part of the CTDG ecosystem, CTDG Dev Hub serves as a developer-focused hub alongside CTDG’s validator operations and educational initiatives. The hub offers an open, global public space for developers and other members of the blockchain community to exchange ideas, develop solutions, and submit proposals.
Through its participation in CTDG Dev Hub, Utexo becomes part of a shared development environment where its approach can be reviewed and discussed by other contributors. The Dev Hub serves as a coordination point for developers and community members exploring infrastructure and tooling for Bitcoin-based applications.
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
Ripple’s prime brokerage platform adds support for decentralized exchange Hyperliquid
Ripple has announced that its institutional prime brokerage platform, Ripple Prime, now supports the decentralized derivatives trading protocol Hyperliquid.
The integration gives Ripple Prime clients access to Hyperliquid’s onchain perpetuals liquidity while keeping margin and risk managed inside Ripple Prime. The company said clients will be able to cross-margin decentralized finance derivatives exposures, alongside positions in other markets the platform supports.
Ripple Prime currently supports traditional assets that include FX, fixed income, over-the-counter swaps, and more. The platform acts as a single point of access for institutions managing multi-asset portfolios, offering centralized risk management and capital efficiency, Ripple said.
The integration builds on growing interoperability in the space. Earlier this year Flare, a blockchain focused on interoperability, launched the first XRP spot market on Hyperliquid with the listing of FXRP. Ripple’s announcement focuses on derivatives access through Ripple Prime rather than retail spot trading.
Hyperliquid has drawn attention over its rapid growth to become the largest perpetual contracts decentralized exchange. As of mid-January, it had surpassed $5 billion in open interest and $200 billion in monthly trading volume, outpacing several rival exchanges.
Its recent surge in tokenized commodity trades, including silver futures, has attracted interest in the space and helped its HYPE token outperform during the ongoing selloff. The platform is also eyeing prediction markets.
Ripple launched its Prime platform in late 2025 following its $1.25 billion acquisition of prime brokerage firm Hidden Road.
Bitcoin Rebounds Above $75K After Shutdown Relief, But New Risks Loom
Bitcoin rebounded from recent lows after U.S. lawmakers ended the government shutdown, but lingering fiscal deadlines and cautious derivatives positioning suggest crypto markets remain on edge. Crypto Volatility Persists Despite U.S. Shutdown Resolution Crypto markets remain unsettled as short-term political relief gives way to fresh sources of uncertainty. Bitcoin briefly fell to around $72,800, its […]
CSG reduce hasta un 70 % las pérdidas por fraude en las empresas con CSG Payments Protection.ai
La solución de detección de fraude impulsada por IA supervisa transacciones casi en tiempo real y en múltiples canales, y bloquea el fraude sin ralentizar los pagos legítimos
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El comunicado en el idioma original es la versión oficial y autorizada del mismo. Esta traducción es solamente un medio de ayuda y deberá ser comparada con el texto en idioma original, que es la única versión del texto que tendrá validez legal.
Epstein files reveal sex offender’s attempts to steer Bitcoin development – DL News
- Bitcoin contributors appear in new Epstein files release.
- The late sex offender tried to steer early development.
- Epstein indirectly funded Bitcoin Core developers in 2015.
The latest batch of the “Epstein files” has shed fresh light on the late sex offender’s dealings with some of the Bitcoin blockchain’s most influential developers.
Recorded within the millions of previously unseen pages are numerous business deals, introductions, and conversations between Epstein and developers which span almost seven years.
Epstein’s early fascination with Bitcoin is well-documented.
He donated a total of $850,000 to the Massachusetts Institute of Technology between 2002 and 2017, with $525,000 specifically allocated to the MIT Media Lab’s Digital Currency Initiative.
In 2015, some of this funding was indirectly used to pay Bitcoin Core contributors who joined the lab after the Bitcoin Foundation ran out of money.
Epstein was in frequent contact with Joichi Ito, a Japanese entrepreneur who directed the MIT Media Lab between 2011 and 2019. The pair’s contributions helped position MIT as a central hub for Bitcoin protocol work.
“This is a big win for us,” Ito said to Epstein in an email discussing that the Bitcoin Core developers had joined the MIT Media Lab.
The Bitcoin developers are mentioned in the emails for various reasons.
Inclusion of their names and communications in the files does not necessarily indicate evidence of any wrongdoing.
All the interactions took place after Epstein’s 2008 convictions by a Florida state court of procuring a child for prostitution and of soliciting a prostitute.
Taken together, the communications reveal Epstein’s fascination with Bitcoin and its developers, and, in many cases, highlight a desire to use his power, wealth, and connections to steer the $1.5 trillion blockchain’s development.
Jeremy Rubin
Jeremy Rubin is a prominent Bitcoin Core developer, researcher, and entrepreneur. He’s most well-known for co-founding the MIT Digital Currency Initiative, which Epstein later helped fund.
The first mention of him in the Epstein files was in June 2014, while he was a student at MIT. An email between Epstein and Lesley Groff, Epstein’s personal aide, shows her trying to arrange a call between the two men.
In December 2015, Rubin reached out to Epstein directly via email.
“I was wondering if you would be interested in financing my continued research in this space, or if there are any projects you’d want to push forward that I might play a role in,” he said. “I’d also love to learn more from you about how financial markets really work and build some of my own ‘exploits’ at some point.”
“Their deal is to pump the currency, it is dangerous.”
— Jeffrey Epstein
Epstein responded by suggesting ways Rubin could receive money from him.
“One, you can merely work for me, salary. Two, start a company, hire others, I make an investment (more paperwork). Three, do research. Tax advantages but restricted. I can easily pay your tuition. Or some combo of the above,” Epstein said.
By 2018, the pair’s relationship appears to have developed. Emails show they arranged to meet in person in June, and also made several introductions for each other.
The same year, Rubin also pitched Epstein on potential crypto-related investments, including a potential deal in Layer 1, a Bitcoin mining firm. Epstein responded cautiously.
“Jeremy I am more than happy to fund things but as I am high profile, it can’t be questionable ethics,” he said. “Their deal is to pump the currency, it is dangerous.”
Rubin has since commented publicly on his ties to Epstein.
“I’m glad the emails are being released,” he said on February 2, adding that he had “some professional engagement” with Epstein, which was “never exclusive.”
“I hope the release of the emails brings us closer to justice for those harmed and a better understanding of the nature of corruption in our society,” he said.
Gavin Andresen, Wladimir van der Laan and Cory Fields
Gavin Andresen, Wladimir van der Laan and Cory Fields are three Bitcoin Core developers who joined the MIT Media Lab’s Digital Currency Initiative in 2015.
Their names appeared in the files in an April 2015 email between Ito, then-director of the DCI, and Epstein.
In the email, Ito explains that Andresen, van der Laan and Fields were being paid for their work on Bitcoin by a non-profit organisation called the Bitcoin Foundation, which had declared bankruptcy several weeks prior.
The idea is great, the execution as you are now aware has some serious risks.”
— Jeffrey Epstein
“Many organizations scrambled to step into the vacuum created by the foundation and ‘take control’ of the developers,” Ito said. “We moved quickly talking to all of the various stakeholders and the three developers decided to join the Media Lab. This is a big win for us.”
Epstein also attempted to meet with Andresen as early as 2011, months after he had taken over as lead maintainer of the Bitcoin source code from Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
“Gavin, I spoke with Jason Calacanis. I would like to speak with you. Call my office in NY. The idea is great, the execution as you are now aware has some serious risks,” Epstein said in a June 2011 email to Andresen. Calacanis is a prominent US investor and well-known for The All-In Podcast.
“Jeffrey Epstein will be up at Harvard this Friday June 17th and Saturday June 18th. He would love to meet with you. Might you be around and have some available time?” one of Epstein’s aides said in an email to Andresen days later.
“No, sorry, I’m busy,” Andresen replied.
There is no evidence so far that Wladimir van der Laan or Cory Fields communicated directly with Epstein or his aides.
Andresen has kept a low profile since he stopped contributing to Bitcoin in 2016. He hasn’t responded publicly to his name appearing in the Epstein files, and didn’t immediately respond to DL News’ request for comment.
Amir Taaki
Amir Taaki is an influential Bitcoin Core contributor who was among the first to join after Satoshi Nakamoto left the project in 2010.
“They are crazy open source folks who are radicals, their motivation is more in line with Wikileaks or Wikipedia.”
— Jason Calacanis
Taaki is first mentioned in the Epstein files, alongside Gavin Andresen, in a June 2011 email from Calacanis.
“I would like to get in touch with the Bitcoin guys,” Epstein said.
“Will dig up their info,” Calacanis responded. “So you know, these are folks who are not trying to build a business. They are crazy open source folks who are radicals, their motivation is more in line with Wikileaks or Wikipedia.”
In July 2011, Epstein emailed Taaki directly.
“Amir, the Bitcoin idea is brilliant, but I suggest it has some serious downsides as I’m sure you are aware. If you can find time please call my NY office,” he said.
At the time, Taaki was running Bitcoin Consultancy, a group focused on Bitcoin project development, consulting, and promotion, with co-founder Donald Norman.
In a July 7 email, Taaki suggested a meeting between Epstein and Norman in New York.
On February 2, Taaki, addressing his inclusion in the Epstein files, said that he and Norman decided to cut communications after Norman met Epstein and looked into the financier’s past and the allegations against him.
Editor’s note: Some of the Email communications quoted in this piece have had grammar, formatting, and spelling errors corrected to make them easier to read and understand. The changes made do not impact the meaning of the communications.
Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.
Survey Shows Crypto Investors Favor Infrastructure Over DeFi
A survey of senior crypto investors and executives suggests capital priorities are shifting away from decentralized finance (DeFi) and toward core infrastructure, as decision-makers focus on liquidity constraints and market plumbing.
The findings come from a new report published by the digital asset conference CfC St. Moritz, based on responses from 242 attendees of its invitation-only event in January. Respondents included institutional investors, founders, C-suite executives, regulators and family office representatives.
According to the survey, 85% of respondents selected infrastructure as their top funding priority, ahead of DeFi, compliance, cybersecurity and user experience.
While expectations for revenue growth and innovation remain broadly positive, respondents flagged liquidity shortages as the industry’s most pressing risk. The results suggest that investor interest remains, but capital deployment is becoming more selective.
Infrastructure takes priority as liquidity concerns persist
Respondents pointed to market depth and settlement capacity as key bottlenecks preventing larger pools of institutional capital from entering crypto markets.
About 84% of respondents described the macroeconomic backdrop as better than neutral for crypto growth, though many said existing market infrastructure remains insufficient for large-scale capitalization.
The survey also showed a change in innovation expectations. While a majority expects innovation to accelerate in 2026, fewer respondents anticipate a sharp increase compared to last year, suggesting a shift away from more speculative expectations toward execution-focused development.
This shift aligns with broader industry trends, including a focus on custody, clearing, stablecoin infrastructure and tokenization frameworks rather than consumer-facing applications.
Related: CoreWeave shows how crypto-era infrastructure quietly became AI’s backbone
US sentiment improves as IPO expectations cool
The survey found a sharp improvement in perceptions of the US regulatory environment, with respondents ranking the country as the second-most favorable jurisdiction for digital assets, behind the United Arab Emirates.
CfC St. Moritz attributed the shift to stablecoin legislation and clearer rules for banks and regulated market participants.
At the same time, expectations for crypto initial public offerings cooled after what respondents described as a record year in 2025. While most still expect listings to continue, fewer expressed high confidence, citing valuation resets and liquidity constraints.
Magazine: Crypto loves Clawdbot/Moltbot, Uber ratings for AI agents: AI Eye
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
Ethereum L2 Builders Debate Scaling Role After Vitalik’s Rollup Rethink
Several layer-2 builders responded after Ethereum co-founder Vitalik Buterin said the original vision of L2s as the primary scaling engine “no longer makes sense,” calling for a shift toward specialization.
In a Wednesday post, Buterin argued that many L2s have failed to fully inherit Ethereum’s security due to continued reliance on multisig bridges, while the base layer is increasingly capable of handling more throughput via gas-limit increases and future native rollups.
The comments prompted responses from Ethereum layer 2s, who broadly agreed that rollups must evolve beyond being cheaper versions of Ethereum but diverged on whether scaling should remain central to their role.
The Ethereum ecosystem is grappling with a shifting roadmap that aims to make the base layer more capable, while L2s reposition themselves as specialized environments serving distinct technical needs.
Ethereum L2 builders accept shift, differ on scaling’s role
Karl Floersch, a co-founder of the Optimism Foundation, said in an X post that he welcomed the challenge of building a modular L2 stack that supports “the full spectrum of decentralization.”
He also acknowledged that major hurdles exist. These include long withdrawal windows, the lack of production-ready Stage 2 proofs and insufficient tooling for cross-chain apps.
“Stage 2 isn’t production-ready,” Floersch wrote, adding that existing proofs are not yet secure enough to support major bridges. He also supported native Ethereum precompile for rollups, a concept that Buterin recently emphasized as a way to make trustless verification more accessible.
Steven Goldfeder, the co-founder of Arbitrum developer Offchain Labs, took a more forceful stance in a lengthy X thread. He argued that while the rollup model has evolved, scaling remains a core value of L2s.
Goldfeder said Arbitrum was not built as a “service to Ethereum,” but because Ethereum provides a high-security, low-cost settlement layer that makes large-scale rollups viable.
He also pushed back on the idea that a scaled Ethereum mainnet could replace the throughput currently handled by L2 networks. Goldfeder cited periods of high activity when Arbitrum and Base processed over 1,000 transactions per second, while Ethereum handled fewer.
He warned that if Ethereum was perceived to be hostile to rollups, institutions might launch independent layer-1 chains rather than deploy on Ethereum.
Related: Stablecoin ‘dust’ txs on Ethereum triple post-Fusaka: Coin Metrics
Base frames differentiation, Starknet hints alignment
Jesse Pollak, head of Base, said in an X post that Ethereum’s L1 scaling was “a win for the entire ecosystem.” He agreed that L2s cannot just be “Ethereum but cheaper.”
Pollak said Base has focused on onboarding users and developers while working toward Stage 2 decentralization, adding that differentiation through applications, account abstraction and privacy features align with the direction Buterin outlined.
StarkWare CEO Eli Ben-Sasson, whose company develops the non-EVM Starknet rollup, offered a brief but pointed reaction on X, writing: “Say Starknet without saying Starknet.”
Ben-Sasson’s comment hinted that some ZK-native L2s see themselves as already fitting the specialized role Buterin described.
Magazine: Ethereum’s Fusaka fork explained for dummies: What the hell is PeerDAS?
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