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Redefining Edge Resilience with Autonomous Architecture

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Enterprise networks were once designed around a stable center. Core data centers anchored policy, segmentation, and routing intent. Remote locations extended outward, inheriting configuration and governance from a primary fabric assumed to be continuously reachable. That model served an earlier generation of infrastructure well. It is increasingly misaligned with how distributed systems now operate.

Workloads are no longer confined to centralized facilities. Disaster recovery environments must execute locally. Edge sites support latency-sensitive applications. Telco clouds and global enterprises extend fabrics across regions where WAN continuity cannot be treated as guaranteed. Industry analysts project continued double-digit growth in multi-cloud and distributed networking investments through 2026, reinforcing that edge expansion is not experimental but structural. Yet many architectures still rely on a foundational assumption: the control plane remains intact, even when connectivity is disrupted.

When that assumption fails, the consequences are not merely degraded throughput. They expose a deeper structural flaw. A network that cannot preserve policy integrity and routing state during isolation was never fully resilient. It was simply extended.

Vijayananda Jayaraman, Senior Technical Leader at Cisco with over 20 years of experience architecting global-scale routing and EVPN-driven fabrics, has focused his recent work on dismantling that fragility. His efforts in designing Remote Leaf Resiliency within Cisco ACI address a question that modern edge deployments can no longer avoid: how should a fabric behave when it is cut off from its center?

“A distributed network must be able to operate coherently even when parts of it are isolated,” Jayaraman explains. “If local state collapses when the WAN disappears, the architecture was centralized in disguise.”

The Structural Risk of Dependent Edge Extensions

Fabric extension technologies have matured rapidly. Remote leaf deployments enable centralized policy management across geographically dispersed environments. Administrators gain operational simplicity. Segmentation rules propagate consistently. Observability remains unified. On the surface, the model appears robust.

The fragility emerges under partition.

In many traditional remote leaf designs, control-plane decisions remain anchored to the primary pod. When connectivity between a remote site and the main fabric is interrupted, forwarding may continue temporarily, but authoritative policy updates halt. Endpoint databases risk becoming stale. Segmentation logic can diverge. Isolation events transform remote sites into partially functional islands with ambiguous governance.

These scenarios are not theoretical. Fiber disruptions, provider outages, and maintenance errors routinely introduce partitions in distributed networks. In such moments, resilience is measured not by how quickly connectivity is restored, but by whether the system continues to enforce intent correctly during separation.

Jayaraman approached this challenge not as a feature enhancement but as an architectural correction. Remote Leaf Resiliency in Cisco ACI enables multiple remote leaf switches to form an Autonomous Remote Leaf Group. Within this group, switches establish full-mesh BGP EVPN peerings among themselves, exchanging endpoint information and external prefixes using standards-based control-plane mechanisms. If WAN connectivity to the main fabric pod fails, the group maintains local control-plane and data-plane functionality without dependency on the central site.

The initiative was engineered for production-grade distributed environments where downtime is measured in contractual penalties rather than inconvenience. By enabling intra-group traffic continuity during WAN or main pod isolation events, the architecture delivers near-zero disruption for east-west workloads within autonomous remote domains. For enterprises and service providers operating across hundreds of geographically dispersed sites, this materially reduces blast radius during partition scenarios and restores predictability to failure events.

The impact has been tangible. The enhancement strengthened ACI’s position in distributed enterprise and telco deployments, contributing to multiple large-scale engagements valued at over $100 million in aggregate orders. Internally, the work received top-tier achievement recognition, reflecting its strategic importance in advancing ACI from centralized fabric extension toward autonomous edge architecture.

“Availability is often reduced to uptime metrics,” Jayaraman notes. “But true resilience is about preserving intent. The control plane must survive isolation if policy is to remain trustworthy.”

Control-Plane Integrity as the Foundation of Resilience

Modern infrastructure discussions frequently emphasize bandwidth, throughput, and automation. These dimensions matter. Yet they rarely address the underlying economics of state management and failure domains. This pattern extends beyond individual systems. As a judge for the Globee Awards for Cybersecurity, Jayaraman has observed that many enterprise architectures emphasize redundancy without proving control-plane integrity under real failure conditions.

Control planes coordinate routing intent, endpoint distribution, and segmentation policies across fabrics. When they are tightly coupled to a central authority, partitions create ambiguity. Remote devices may continue forwarding based on cached state, but without authoritative coordination, drift becomes possible. Over time, small inconsistencies accumulate into operational risk.

The architectural insight behind Remote Leaf Resiliency is that autonomy must be explicit. Autonomous Remote Leaf Groups maintain internal BGP EVPN peering, preserving deterministic control-plane exchanges even when isolated from the core. Intra-group traffic continues without relying on upstream synchronization. Failure domains become bounded and predictable.

Importantly, the design adheres to standards-based EVPN and BGP mechanisms rather than proprietary fallback logic. This reinforces portability and operational transparency. Architects can reason about behavior using established protocol semantics rather than opaque failover constructs.

“The temptation in complex systems is to mask dependency with abstraction,” Jayaraman observes. “But abstraction does not eliminate coupling. It only hides it. Resilience requires reducing that coupling at the control-plane level.”

By treating the remote site as a self-sufficient control domain during isolation, the architecture transforms what was previously a single point of fragility into a distributed accountability model. Policy consistency is no longer contingent on uninterrupted reachability to a distant pod.

Designing for Partition, Not Just Performance

Enterprise networking often prioritizes steady-state demonstrations. Benchmarks validate throughput. Latency measurements confirm efficiency. Failover tests simulate brief outages. These exercises are necessary, but they do not fully capture the complexity of sustained partitions.

In distributed systems theory, partition tolerance forces trade-offs between consistency and availability. Networks increasingly confront similar realities. An edge site may be reachable to its local devices while severed from the broader fabric. The design question becomes whether the system degrades gracefully while preserving segmentation and routing integrity.

Remote Leaf Resiliency addresses this tension directly. During WAN or main pod failure, the Autonomous Remote Leaf Group maintains local endpoint awareness and routing exchanges. Intra-group traffic continues without dependency on centralized controllers. When connectivity is restored, synchronization resumes in a controlled manner, minimizing disruptive state recalculations.

The outcome is not merely continuity of traffic, but continuity of governance.

For distributed enterprises and telco-grade deployments, this distinction carries operational weight. Disaster recovery sites can execute workloads locally without fear of policy collapse. Edge environments maintain segmentation boundaries even when isolated. Operational teams gain clearer failure-domain visibility, reducing cascading effects across regions.

“Throughput matters,” Jayaraman reflects, “but convergence and state integrity matter more during stress. That is when architecture proves its design.”

From Stretched Cores to Autonomous Domains

The broader implication of this work extends beyond a single feature set. It signals a necessary evolution in how enterprise fabrics are conceptualized.

Earlier generations of networking architecture assumed a stable, authoritative center. Edge sites were satellites. Policy flowed outward. Failures were localized and infrequent. In contrast, today’s distributed environments demand that remote domains act as first-class participants in the fabric. Isolation is not an anomaly. It is an expected condition that must be engineered for explicitly.

Redefining resilience therefore requires more than redundancy. It requires architectural intent that acknowledges partition as inevitable and designs bounded autonomy accordingly.

Jayaraman’s work on Remote Leaf Resiliency exemplifies this shift. By embedding autonomous control-plane behavior into remote domains, the architecture aligns networking practice with distributed systems principles long understood in software engineering. Failure domains are explicit. State exchange is deterministic. Policy integrity is preserved under stress.

“Resilience is not something you enable after deployment,” he concludes. “It is a property of the control plane. If it is not designed into the architecture from the beginning, it cannot be retrofitted later.”

As enterprises continue to extend infrastructure across regions, clouds, and edge environments, the definition of a resilient network must evolve. Connectivity alone no longer suffices. The future belongs to fabrics that can stand independently when required, preserving intent and integrity even in isolation.

In that future, autonomy at the edge is not an enhancement. It is the standard.







Jamie Dimon signals JPMorgan (JPM) entry into prediction markets as competition surges

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JPMorgan (JPM) CEO Jamie Dimon said the bank is considering entering the prediction markets space, signaling growing interest from major financial institutions in a sector that has expanded rapidly in recent months, including among crypto-native companies.

“It’s possible one day we’ll do something like that,” Dimon said on CBS on Tuesday, though he ruled out offering markets in sports or politics.

“There’s a bunch of stuff we won’t do. And obviously, we have strict rules around insider information.”

Goldman Sachs (GS) has expressed similar ambitions. CEO David Solomon said during the bank’s January earnings call that the firm is actively exploring the space. “I personally met with the two big prediction companies and their leadership in the last two weeks and spent a couple of hours with each to learn more about that,” he said. “We have a team of people here that are spending time with them and are looking at it.”

The comments highlight how quickly the sector has evolved. Not long ago, prediction markets were a niche corner of finance dominated by just two credible players: Polymarket and Kalshi. Today, competition is intensifying rapidly.

Several crypto-native platforms, including Coinbase (COIN) and Robinhood (HOOD), have integrated prediction market trading into their offerings, expanding access to retail users and increasing overall market activity.

At the same time, the early leaders continue to grow. Polymarket has secured major partnerships and investments, including ties with Intercontinental Exchange, the parent company of the New York Stock Exchange. The company is believed to be valued at around $20 billion. Rival platform Kalshi recently reached a $22 billion valuation following a funding round led by Coatue Management.

The two platforms take different technological approaches. Polymarket operates on blockchain infrastructure, using networks like Polygon (POL) to record trades and settle positions through smart contracts. Users deposit stablecoins, place bets on event outcomes and receive automated payouts based on verified results.

Kalshi does not use blockchain technology; instead, it operates more like a traditional exchange, offering event contracts under a regulated framework with centralized order matching and settlement.

It remains unclear how JPMorgan or Goldman Sachs would structure their own offerings, particularly whether they would adopt blockchain-based systems or stick to traditional infrastructure.

Regulation remains a key uncertainty. The legal status of prediction markets in the U.S. is still evolving, especially around what types of events can be offered and how contracts are classified. Major banks are likely to wait for clearer guidance before launching products.

Earlier this month, the Commodity Futures Trading Commission (CFTC) took two significant steps toward building a regulatory framework for prediction markets, signaling that oversight of the sector is beginning to take shape.

Can AI Agents Scale on a Web Built to Block Them? Spacecoin Thinks Residential Routing Is the Answer

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  • Spacecoin has launched SpaceRouter, a residential proxy platform for AI agents that uses real home internet connections.
  • The product is designed to help agents avoid blocks triggered by datacenter-originated traffic.
  • SpaceRouter supports HTTP and SOCKS5, geographic targeting, and standard proxy-based integration.

AI agents may be getting smarter, but many still cannot move freely across the open web. Spacecoin’s launch of SpaceRouter suggests that internet access, not model capability alone, is becoming a critical constraint on the next phase of agent deployment.

Spacecoin has launched SpaceRouter, a residential proxy platform designed to help AI agents access websites through home internet connections instead of data-center infrastructure.

The product is aimed at an important problem: many websites treat traffic from cloud servers as suspicious, making it harder for autonomous agents to browse pages, gather data, and complete tasks across the public web.

The launch says something larger about where the AI market is heading.

For much of the past two years, the focus in AI has been on models, chips, and applications. But as agents move from chat interfaces into software that actually clicks, searches, and executes workflows online, the constraint is shifting.

In many cases, the issue is no longer whether the model can reason through a task. It is whether the internet will let the agent complete it.

SpaceRouter is built around that friction point.

How SpaceRouter Works? It routes agent traffic through real residential connections, with developers able to plug it into existing systems through standard proxy settings rather than redesigning their workflows from scratch.

How SpaceRouter Works? Image Credit: Spacecoin

The platform supports HTTP and SOCKS5 protocols, geographic routing, and standardized integrations meant for developers working in common agent environments.

It’s crucial because anti-bot systems have become more sophisticated.

In 2024, Cloudflare, one of the largest bot-management providers, introduced machine-learning models to detect abuse coming through residential proxies.

In a later 2025 post, the company said it was expanding into per-customer behavioral anomaly detection to catch bots that try to mimic normal traffic over time.

That suggests the web’s trust systems are no longer just screening for obvious server-originated automation. They are increasingly trying to identify more subtle and persistent forms of non-human activity.

That creates an arms race.

As more businesses deploy AI agents for research, e-commerce, operations, and web automation, developers need ways to keep those systems functioning on sites built to resist automated access.

Residential routing does not solve everything. Websites also examine browser fingerprints, session behavior, request timing, and other signals. But IP reputation remains one of the first filters many systems apply, which makes residential infrastructure commercially valuable for anyone trying to keep agents online. This is an inference based on Cloudflare’s detection focus and SpaceRouter’s positioning around residential traffic.

Spacecoin’s move also broadens its own story.

The company has mostly been associated with decentralized connectivity and satellite-based internet ambitions. In October 2025, Spacecoin successfully transmitted secure data through space using blockchain technology as part of its effort to build a decentralized alternative to traditional internet infrastructure in underserved or censored markets. TechCrunch described this achievement of Spacecoin as pursuing a decentralized communications backbone that could one day compete with more centralized satellite networks.

SpaceRouter extends that infrastructure thesis from orbit to the application layer.

Instead of focusing on last-mile connectivity or satellite transmission, the new product addresses a different question: how autonomous software systems can reliably move through today’s internet. In that sense, the launch looks like an attempt to position Spacecoin as a provider of AI-era network infrastructure, especially for developers who see web access as a core part of agent execution. That interpretation is based on the contrast between Spacecoin’s earlier connectivity strategy and the new product’s developer-facing design.

There is also a strategic tension embedded in the market.

Residential proxies are useful because they make traffic appear closer to ordinary consumer browsing. But that same feature has made them a recurring focus for security vendors trying to detect abuse.

According to Cloudflare, bot operators have increasingly used residential proxy networks, forcing defenders to invest in machine learning and behavioral analysis rather than simple IP blocking.

That means products like SpaceRouter may sit in an uncomfortable middle ground: legitimate tools for AI workflows on one hand, and part of a broader automation-versus-defense contest on the other.

Why does it matter? The launch of SpaceRouter highlights that the next stage of AI adoption may depend on infrastructure below the model layer.

If agents are expected to navigate the public internet the way humans do, then access continuity, network reputation, and compatibility with site-level trust systems could become foundational components of the stack. Spacecoin’s launch shows that for agent developers, the problem is no longer just intelligence. It is operability.

That may be the clearest signal from SpaceRouter’s launch.

The web was built around the assumption that human users sit behind browsers and household connections. AI agents challenge that assumption. Spacecoin is betting that a new class of infrastructure can bridge the gap. Whether that becomes a durable market may depend on what happens next: whether websites begin accommodating verified agents more formally, or whether anti-bot systems evolve even faster in response. Either way, the launch points to a growing reality for the AI industry. Smarter agents alone are not enough if they cannot get through the front door.

The article “Can AI Agents Scale on a Web Built to Block Them? Spacecoin Thinks Residential Routing Is the Answer” was first published on AlexaBlockchain. Read the complete article here: https://alexablockchain.com/spacecoin-spacerouter-residential-proxy-platform-for-ai-agents/

Read Also: MoneyGram, Pairpoint and eToro Back Midnight’s Privacy Blockchain Before Mainnet

Disclaimer: The information provided on AlexaBlockchain is for informational purposes only and does not constitute financial advice. Read complete disclaimer here.

Image Credits: Spacecoin, Shutterstock, Canva, Wiki Commons

Citadel-Backed Exchange Applies For US Trust Bank Charter

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EDX Markets, a cryptocurrency exchange backed by Citadel Securities, has applied for a national trust bank charter with the Office of the Comptroller of the Currency, marking a step toward deeper integration between digital asset firms and the US banking system.

The application, made public on April 1 according to recent filings, would allow EDX Markets to offer custody, asset management and principal trading services while continuing to operate its existing order-matching platform. The firm said the charter would place key functions such as custody and settlement under a regulated banking structure.

EDX Markets framed the move as part of an effort to reshape crypto market structure along lines seen in traditional finance. 

In its filing, the company argued that combining brokerage, exchange and custody functions within a single entity creates conflicts of interest and introduces operational risk. 

A trust bank model, it said, would separate custody and settlement from trading activity, aligning digital asset infrastructure with established financial market practices.

Banks are coming to crypto

Chief executive Tony Acuña-Rohter said the firm expects large banks to play a central role in the next phase of digital asset adoption. He said obtaining a trust charter would position EDX Markets to serve institutional clients that require regulated custody and settlement systems.

The application arrives during a shift in federal policy toward digital assets. Under the current administration, regulators have shown greater openness to crypto firms seeking entry into the banking system. Several companies have pursued similar charters in recent months as part of a broader push to operate under federal supervision.

In December, regulators granted conditional approval for trust bank charters to firms including Circle Internet Group and Ripple. Those approvals signaled a willingness to bring digital asset firms into the regulatory perimeter that governs custody and asset management.

EDX Markets said its proposed structure would reduce systemic risk by separating functions that are often combined on crypto platforms. 

The company pointed to traditional equities and derivatives markets, where exchanges, brokers, custodians and market makers operate as distinct entities. That separation, it said, limits conflicts between trade execution and asset custody while strengthening safeguards for client funds.

Founded in 2022, EDX Markets was built to serve institutional investors and financial firms entering the digital asset sector. In addition to Citadel Securities, its backers include Virtu Financial, Fidelity Digital Assets and Hudson River Trading. 

The platform was designed to mirror the structure of traditional financial markets, with a focus on separating trading activity from custody and settlement.

If approved, the trust charter would allow EDX Markets to expand its custody and settlement capabilities under federal oversight. National trust banks are permitted to hold client assets, provide fiduciary services and manage portfolios, subject to supervision by the OCC.

Genius Group (GNS) Dumps All Bitcoin Holdings To Clear Debt

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Genius Group sold its entire Bitcoin reserves to repay $8.5 million in debt, the company said today. The firm entered a Bitcoin first strategy in late 2024 after the US election, allocating most reserves to Bitcoin and building a treasury position that reached 440 BTC by February 2025.

After a court order blocked fundraising and share issuance, the company sold portions of its holdings and reduced exposure. In February 2026, Genius Group held about 84 BTC after prior sales that included roughly 86 BTC in the month before.

The remaining Bitcoin was liquidated to remove $8.5 million in liabilities and support debt repayment, leaving the company without crypto reserves and selling at a loss.

Genius Group reported Q1 2026 operational revenue of $3.3 million, up 171 percent from the prior year, with gross profit at $2.0 million and net operating profit at $2.7 million.

Adjusted EBITDA reached $600,000 as the company shifted focus toward higher margin education programs and experiential learning.

Genius Group: Rebuilding a bitcoin treasury at the right time

The company said it will rebuild its Bitcoin treasury when market conditions support renewed accumulation.

“In addition to an ongoing focus on profitable operations, the Company has restructured its debt agreements, selling the remainder of its Bitcoin Treasury and repaying in full the Company’s $8.5 million in debt. The Company will recommence building its Bitcoin Treasury when it believes market conditions are more favourable,” the company wrote in a release. 

Chief executive Roger Hamilton said the group focus remains on three units: Genius School, Genius Academy, and Genius Resorts. The group said legal actions progressed during the quarter and management focus stayed on operations and growth initiatives.

Genius Group outlined a series of operational and strategic developments as it continues to reposition its business around education technology and experiential learning. The company said its Genius Academy division expanded AI-powered learning programs tailored for enterprises and government partners, aimed at workforce training and skills development. 

Genius School also launched in Bali integrated primary middle and secondary curriculum under Cambridge system with focus on future education model

At the same time, Genius Resorts contributed incremental revenue through experiential education offerings, including hosted learning events in Bali that blend curriculum with immersive, on-site instruction.

The firm also reported progress on its broader infrastructure ambitions in Southeast Asia, citing continued expansion of its “Genius City” initiative in Bali. The project is designed to scale both student and residential capacity, building out a combined education and living hub.

On the financial side, the company pointed to insider buying as a signal of confidence, with its CEO accumulating a total of 5.5 million shares since 2024. Revenue growth was driven by expansion across business lines, alongside a shift toward higher-margin segments that improved the company’s overall gross margin profile. 

Genius Group also reported a return to net profitability, supported by a reduced debt burden and the restructuring of financing agreements. Adjusted EBITDA turned positive, which the company said aligns with its operational targets for fiscal 2026.

Quantum computing could break Bitcoin sooner, says Google

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Network News

GOOGLE SAYS BREAKING BITCOIN IS EASIER THAN PREVIOUSLY THOUGHT: Breaking the Bitcoin blockchain with quantum computers may not be as difficult as once thought, and Bitcoin’s Taproot technology, which enables more efficient, private transactions, may be partly to blame, Google’s Quantum AI team said in a blog post and newly published whitepaper. The team said the computing power required to break Bitcoin’s security may be far lower than previously assumed, raising fresh questions about how soon quantum threats could become a reality.In a new whitepaper, researchers found that cracking the cryptography used by Bitcoin and Ethereum could require fewer than 500,000 physical quantum bits, or qubits, well below the “millions” often cited in recent years. Google has previously pointed to 2029 as a potential milestone for useful quantum systems, saying migration needs to come before that, making the paper’s finding that attacks may require less computing power more significant. Quantum computers use qubits instead of traditional bits and can solve certain problems much faster than today’s machines. One of those problems is breaking the type of encryption that protects crypto wallets.Google said it designed two potential attack methods, each requiring roughly 1,200 to 1,450 high-quality qubits. That is a fraction of earlier estimates and suggests the gap between current technology and a viable attack may be smaller than investors think. The research also outlines how such an attack could work in practice. Rather than targeting old wallets, a quantum attacker could go after transactions in real time. When someone sends bitcoin, a piece of data called a public key is briefly revealed. A fast enough quantum computer could use that information to calculate the private key and redirect the funds. — Sam Reynolds Read more.

OPENAI RAISES RECORD $122 BILLION: Artificial intelligence giant OpenAI has closed $122 billion in committed capital at an $852 billion post-money valuation, a round that dwarfs anything raised in private markets and cements the company as the most valuable startup in history by a wide margin. The funding was anchored by Amazon, Nvidia, and SoftBank, with continued participation from Microsoft. SoftBank co-led alongside a16z, D.E. Shaw Ventures, MGX, TPG, and accounts advised by T. Rowe Price. The investor list reads like a who’s who of global capital — BlackRock, Blackstone, Fidelity, Sequoia, Temasek, Coatue, and ARK Invest all participated. For the first time, OpenAI opened participation to individual investors through bank channels, raising over $3 billion from that tranche alone. OpenAI said it is generating $2 billion in revenue per month, up from $1 billion per quarter at the end of 2024. ChatGPT has more than 900 million weekly active users and over 50 million subscribers. The company claims 6x the monthly web visits and mobile sessions of the next largest AI app, and 4x the total time spent of all other AI apps combined. — Shaurya Malwa Read more.

HOW BITCOIN, ETHEREUM, AND SOLANA ARE PREPARING FOR Q-DAY: As quantum computing edges closer to practical reality, the crypto industry is beginning to confront a question it has long deferred: what happens if the cryptography underpinning trillions of dollars in digital assets no longer holds? The answers, so far, are anything but uniform. Across many of the most well-known ecosystems like Bitcoin, Ethereum, and Solana, responses are diverging along familiar lines: what to do on social consensus and technical iteration, and community members are split between caution and acceleration. Quantum computing is a fundamentally different approach to computation that uses the principles of quantum mechanics rather than classical physics. Instead of traditional bits that are either 0 or 1, quantum computers use “qubits,” which can exist in multiple states at once, a property known as superposition, allowing them to process many possibilities simultaneously. Combined with another feature called entanglement, this enables quantum machines to solve certain complex problems far more efficiently than classical computers, particularly tasks like factoring large numbers that underpin modern encryption. How threatening is quantum computing? Consider this: Quantum computers can solve extremely complex problems within seconds, whereas ‘Supercomputers,’ the most powerful computing machines available today, would take thousands of years for the same problems, according to IBM. And that’s why the threats to cryptographic networks stemming from quantum computing are concerning. And even Google, developer of Willow, a quantum supercomputer, is setting a 2029 deadline to migrate its authentication services to post-quantum cryptography, citing progress in the technology. — Margaux Nijkerk Read more.

BASE TEAM RELEASES 2026 ROADMAP: Base, the layer-2 network from Coinbase (COIN), is doubling down on its push to build what it calls a “global onchain economy,” outlining a 2026 strategy centered on markets, payments and developers. Base is one of the most widely used layer-2 networks in the Ethereum ecosystem, having opened to public use in August 2023. It was initially built using Optimism’s OP Stack as part of the broader “Superchain” ecosystem, though the project has since signaled plans to differentiate its infrastructure as it scales. In February, the Coinbase team said the chain will increasingly rely on its own, in-house code. Layer-2 blockchains are built on top of Ethereum and aim to increase speed and lower costs by processing transactions themselves, while still relying on Ethereum for security. The model has become a key part of Ethereum’s scaling strategy, enabling cheaper and faster transactions without moving activity entirely off the network. More recently, however, some Ethereum leaders, including co-founder Vitalik Buterin, have signaled a shift in focus toward scaling the base layer itself, leaving open questions about how layer-2 networks will fit into Ethereum’s evolving roadmap. For 2026, Base said it will focus on three areas: expanding onchain markets, scaling stablecoin-based payments and growing its developer ecosystem — a push that comes as onchain trading venues and stablecoins see rising adoption among institutional players. — Margaux Nijkerk Read more.


In Other News

  • Bitcoin’s reputation has historically been built on extreme boom-and-bust cycles, with steep drawdowns of up to 90% following all-time highs. This cycle, however, the decline has been closer to 50%, a shift that analysts said reflects the maturation of BTC as an asset class. “Bitcoin’s drawdowns compressing to about 50% is a sign of a maturing market structure,” AdLunam co-founder and market analyst Jason Fernandes told CoinDesk. “As liquidity deepens and institutional participation increases, volatility naturally compresses on both the upside and the downside,” he added, saying that “at that point, the narrative shifts from questioning its legitimacy to optimizing allocation.” Fernandes’ comments are in response to Fidelity Digital Assets analyst Zack Wainwright’s X post Tuesday, in which he noted growth is becoming “less impulsive,” with a reduced probability of extreme downside events as bitcoin matures. — Olivier Acuna Read more.
  • In Jack Dorsey’s view of the world, the job most at risk from the AI revolution is the middle manager. Dorsey argues in a new essay, “From Hierarchy to Intelligence,” published with Roelof Botha, Sequoia Capital’s managing partner, an investor in Block, that his company’s decision to cut approximately 4,000 of its more than 10,000 employees was not a cost reduction but a permanent restructuring to replace middle managers with AI. Corporate hierarchy, the essay argues, has always existed to solve one problem: routing information through organizations too large for any single person to oversee. Managers aggregate context from below, act as messengers from above, and maintain alignment across teams. AI can now perform those functions continuously and at scale, the authors argue, making the messenger redundant. In place of management layers, Dorsey and Botha proposes two AI-driven “world models.” One aggregates internal data from code, decisions, workflows, and performance metrics to create a continuously updated picture of company operations, replacing the context that managers traditionally carried. The other maps customer and merchant behavior using transaction data from Cash App and Square. — Sam Reynolds Read more.

Regulatory and Policy

  • Australia passed legislation creating its first comprehensive regulatory framework for digital assets that requires crypto exchanges and custody providers to obtain financial services licenses. The Corporations Amendment (Digital Assets Framework) Bill 2025 cleared both houses on April 1, bringing firms that hold digital assets on behalf of customers into the existing Australian Financial Services Licence regime. Australia’s bill creates two new regulated categories under the Corporations Act: digital asset platforms, which hold crypto on behalf of users, and tokenized custody platforms, which hold real-world assets and issue a corresponding digital tokens. Operators of both must obtain an Australian Financial Services License from ASIC, bringing them under the same core rules as brokers or fund managers, including requirements to safeguard client assets, provide standardized disclosures, avoid misleading conduct, and maintain dispute resolution and compensation systems. Instead of regulating crypto itself, the law targets the companies in the middle that control customer funds, aiming to reduce risks like commingling, insolvency, and misuse of assets that have caused losses in past crypto failures. — Sam Reynolds Read more.
  • Hong Kong has missed its own March timeline for HKD stablecoin licensing, with the Hong Kong Monetary Authority (HKMA) yet to approve any issuers despite public signals that the rollout would begin last month. At Consensus Hong Kong in February, Financial Secretary Paul Chan Mo-po said licenses would begin to be issued in March as part of the city’s push to position itself as a regulated hub for stablecoins and tokenized finance. The lack of approvals so far pushes that timeline into April and raises questions about how quickly the framework will move from policy to implementation. “In giving our licenses, we ensure that licensees have novel use cases, a credible and sustainable business model and strong regulatory compliance capabilities,” he said at CoinDesk’s Hong Kong conference.— Sam Reynolds Read more.

Calendar

  • Mar. 30-Apr. 2, 2026: EthCC, Cannes
  • Apr.15-16, 2026: Paris Blockchain Week, Paris
  • May 5-7, 2026: Consensus, Miami
  • Sept. 29-Oct.1, 2026: Korea Blockchain Week, Seoul
  • Oct. 7-8, 2026: Token2049, Singapore
  • Nov. 3-6, 2026: Devcon, Mumbai
  • Nov. 15-17, 2026: Solana Breakpoint, London

Governance is the real Layer 1

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Welcome to our institutional newsletter, Crypto Long & Short. This week:

  • Nilmini Rubin on the challenge facing crypto and traditional markets to create a hybrid, shared governance structure.
  • Meredith Fitzpatrick covers how financial institutions must fundamentally rethink AML risk as crypto and TradFi converge.
  • Top headlines institutions should pay attention to by Francisco Rodrigues.
  • Maple loans surge past $1 billion in Chart of the Week.

-Alexandra Levis


Expert Insights

Governance is the real Layer 1

By Nilmini Rubin, chief policy officer, Hedera

When Silicon Valley Bank collapsed in 2023, USDC briefly lost its dollar peg after billions in reserves were trapped in the bank. The impact spread quickly, stalling markets, repricing assets mid-transaction and triggering a broader confidence shock. While regulators stress-test traditional markets, this event exposed a new risk where failures in traditional finance can directly impact digital assets.

This episode raised fundamental questions about what happens if risk moves in the other direction, from crypto to the traditional market: who intervenes, who absorbs losses and how is confidence in markets restored?

As blockchains begin underpinning financial markets, the next phase of digital assets will be defined not only by innovation but by coordinated accountability. That accountability is shaped by how networks are designed.

The false binary

For years, blockchain debates revolved around a familiar divide: public vs. private networks.

Permissionless networks maximize openness and censorship resistance, but can struggle with coordinated upgrades, regulatory integration or emergency intervention. Private systems emphasize control and compliance over neutrality and interoperability.

As institutional adoption accelerates, hybrid models are emerging as the preferred solution.

Hybrid architectures combine public verifiability with open participation and predictable governance. This renders them more suitable for regulated use cases and compliance frameworks that require greater transparency and clear roles. Coordinated accountability, rather than simply public or private choices, is blockchain’s next major challenge.

Blockchain architecture is increasingly converging toward hybrid governance models.

When governance meets crisis

In complex systems, responsibilities are usually defined before problems emerge. Participants know who has authority, who absorbs losses and how emergencies are handled.

Blockchain networks should begin with that level of clarity. When stress arrives through sanctions enforcement, protocol failures or market crashes, effective governance proves a difficult test.

The industry has already seen early signals. During the March 2020 market crash, MakerDAO required emergency intervention after auction failures erased millions in value. The protocol recovered, but we cannot allow these incidents to occur frequently and at scale. In other cases, networks have used coordinated forks to address hacks or illicit activity, but only after the fact.

As tokenization expands, increasing resilience will require governance systems that anticipate crises and define decision-making before an event occurs to effectively mitigate.

Putting governance to the test

Mature financial systems routinely stress-test their governance structures to ensure resilience well before moments of disruption.

Hybrid networks must bring that discipline on-chain. Governance stress testing clarifies roles, aligns incentives and strengthens coordination under pressure, helping the industry prepare for scenarios such as stablecoin volatility, regulatory shifts and AI-driven governance dynamics.

Governance is the real Layer 1

Digital assets are reimagining ownership and participation. The next challenge is applying that same creativity to governance.

The networks that endure will not be the ones with the most tokens or the fastest throughput. They will be the ones that know how to govern effectively when the system comes under pressure.


Headlines of the Week

– By Francisco Rodrigues

The crypto industry has continued navigating the regulatory system over the week, making its way into the mortgage market while also seemingly being stopped from offering yields on stablecoin balances. Other major developments further build trust in the industry, even as prices drop.


Expert Perspectives

The new financial order: updating TradFi risk for crypto

– By Meredith Fitzpatrick, partner and head of cryptocurrency, Forensic Risk Alliance

The convergence of traditional finance and cryptocurrency is no longer theoretical sci-fi — it’s here. Regulatory clarity across major jurisdictions is accelerating institutional entry into digital assets, from Europe’s Markets in Crypto-Assets (MiCA) framework to expanding U.S. legislative momentum with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. For financial institutions, the question is no longer whether to engage with crypto, but how to do so safely.

The critical misstep many institutions make is treating crypto as an extension of existing products. It is not. Crypto fundamentally changes how anti-money laundering (AML) risk must be assessed, monitored and controlled.

At its core, blockchain introduces three defining characteristics: immutability, pseudonymity and borderless value transfer. These reshape both financial crime risk and the tools required to manage it.

Control shifts from accounts to keys

In traditional finance, assets are secured through centralized systems and reversible transactions. In crypto, control rests with private keys. When institutions offer custody, AML risk becomes inseparable from cybersecurity risk. A compromised key is not just a breach — it is an irreversible transfer of value, often beyond recovery. This requires controls such as multi-signature authorization, cold storage, strict access governance and wallet segregation — all of which sit outside traditional AML frameworks but are critical to risk mitigation.

Non-custodial wallets mean dynamic risk assessments

Traditional AML relies heavily on customer identity and static risk profiling. In crypto, this model breaks down. Customers can transact through non-custodial wallets that exist outside institutional onboarding frameworks, and illicit activity often hides in transaction behavior rather than identity.

As a result, risk assessment must evolve from “who the customer is” to “what the wallet does.” This requires continuous monitoring of on-chain activity, including exposure to high-risk counterparties, mixers and decentralized protocols. Risk becomes dynamic, not periodic.

Crypto financial crime is structurally more complex

Cryptocurrency money laundering can involve newer technologies, such as chain-hopping and the use of privacy-enhancing technologies like mixers, that have no direct parallel in traditional finance. Transactions can traverse multiple jurisdictions in minutes, rendering legacy screening systems insufficient. Effective AML now depends on blockchain intelligence: the ability to trace funds, identify direct and indirect exposure to risky parties and interpret transaction patterns across networks.

These shifts require a corresponding evolution in governance and risk management. Boards and risk committees must redefine risk appetite to reflect crypto-specific exposures. Institutions should introduce specialized teams (e.g., digital asset approval committees and high-risk customer panels) to manage rapidly changing risks.

Most importantly, the Enterprise-Wide Risk Assessment (EWRA) must become dynamic. Static, point-in-time assessments are inadequate in an environment where risk profiles can change with a single transaction.

The table below illustrates how customer risk assessment must evolve:

Area of focus
TradFi
Crypto
Customer identity Typically, through identification and verification using government-issued IDs, physical addresses and relevant databases (e.g., credit history). Most centralized virtual asset service providers (VASPs) have KYC/CDD/EDD procedures like TradFi institutions. However, “non-custodial wallets” (wallets where the user retains private key control) exist outside of a centralized body that collects KYC. In this case, on-chain activity may be used when assessing the risk of the customer.
Risk indicators Based on factors like employment, income, geography and transaction history with the institution. Based on wallet behaviour, age, transaction counterparties, interactions with high-risk services (e.g., mixers), and exposure to certain smart contracts, non-custodial wallets, or DeFi platforms.
Transaction transparency Transaction data is private and accessed through internal banking records. On-chain transactions are publicly available, enabling advanced analytics, but only for those with the tools and expertise to interpret them.
Dynamic risk monitoring Risk profiles are usually static or periodically updated. Risk can change dynamically with wallet activity, based on real-time blockchain analysis and ongoing monitoring.

Finally, institutions must invest in new capabilities. Fluency in blockchain analytics for transaction monitoring and forensic investigation are no longer niche skills — they are core AML functions. Most organizations will require a hybrid model combining internal expertise with external specialists.

Professionals in this space must recognize that cryptocurrency compliance is not merely adapting existing frameworks but requires fundamentally different approaches to transaction monitoring, due diligence and incident investigation. Success requires compliance teams to understand traditional regulatory requirements and crypto-specific investigation challenges. Institutions approaching crypto adoption with appropriate forensic rigour — treating it as a fundamental compliance transformation rather than simple product addition — will be best positioned for sustainable success.


Chart of the Week

Maple loans surge past $1B on record $350M single-day issuance

Maple’s loans outstanding jumped back above $1 billion last week as the protocol issued $350 million in loans on a single day. With total AuM now exceeding $4.6 billion, there is a divergence between the protocol’s strong fundamentals and the associated SYRUP token price action. This growth, in spite of broader market conditions, continues to highlight the resilient demand for institutional-grade lending among crypto-native firms.

Maple loans record chart

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Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc., CoinDesk Indices or its owners and affiliates.

EXCLUSIVE: “From Philosophy to Production”

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ING’s Marco Li Mandri describes how the bank is putting its AI vision into practice

Over the past 18 months, Dutch banking giant ING has accelerated its digital transformation, pairing strong financial performance with large-scale investment in data platforms, automation – and AI. The group has reported multi-billion-euro annual profits while returning capital to shareholders – financial resilience that has created room to modernise infrastructure and scale digital innovation.

The latest AI capabilities now sit firmly at the centre of that transformation, not as a lab experiment, but as embedded capability across retail, operations and wholesale banking. Recent developments underline the shift from proof of concept to scaled deployment. More than 90 per cent of ING’s generative AI pilots have progressed into production environments, a high conversion rate in a sector where roughly two-thirds of AI proofs of concept fail to industrialise.

The bank has rolled out AI solutions across multiple markets, automated large elements of customer service and begun piloting with agentic AI in selected domains like voice agents and mortgages. At the same time, AI is being embedded in financial crime monitoring, know-your-customer (KYC) processes and internal engineering workflows, signalling enterprise-wide integration rather than isolated innovation.

It is this prioritised approach that separates ING from many of its peers.

“Last year, we measured how many of the pilots we started in generative AI made it into production, and that number is above 90 per cent,” says the bank’s Global Head of Advanced Analytics Strategy, Marco Li Mandri.

And he attributes that to prioritising projects that are ‘based on value’. In other words, ING has concentrated on domains where AI can deliver immediate customer or operational impact. Across the banking sector, AI investment has surged, but implementation maturity remains
uneven. A recent EY-Parthenon generative AI survey found that 77 per cent of banks have launched or soft-launched generative AI/genAI use cases, yet far fewer have scaled them meaningfully into production.

Governance complexity, fragmented data and organisational readiness continue to slow progress. ING, however, appears to be moving faster than the industry’s average implementation pace.

That acceleration could stem from ING’s entrepreneurial spirit, a larger technology war chest, or structural advantages in data architecture – or a combination of all three. But culture and operating philosophy undoubtedly play defining roles. Elsewhere in this issue (page 6), ING’s COO Marnix van Stiphout talks of the bank raising AI agents, each tasked with running critical operational functions under human supervision. It is a metaphor intended to capture ING’s production-led mindset: build agents, govern them and deploy them at scale.

Add to that a sustained focus on digital transformation – reskilling employees, centralising analytics platforms and embedding responsible AI frameworks.

Its internal experience is also shaping external sentiment. ING’s own 2026investment outlook identifies AI as a structural growth engine, capable of boosting productivity, attracting capital and offsetting labour shortages across the economy. That institutional conviction, rooted in hands-on deployment rather than abstract forecasting, has contributed to a notably bullish investor perspective on AI-enabled banking transformation.

“It’s about improving the efficiency… without compromising risk”

Getting personal

Retail banking has been ING’s first proving ground, and hyper-personalisation sits at the forefront of it. ING has developed a global tooling layer that allows marketers to deliver highly tailored communications at scale.

“More than seven million customers globally received a personal message,” Li Mandri says, describing campaigns calibrated to behavioural data, product relevance and life-stage signals. The result? Measurable uplifts in satisfaction and engagement.

Credit decisioning provides another high-impact deployment, says Li Mandri. Machine learning models now support instant lending approvals in multiple markets, compressing wait times that stretched over days, into decisions delivered in seconds.

“We have machine learning models that now instantly provide loans,” he says. “Customers do not have to wait.”

Contact centres have been equally fertile territory. ING was among the early European banks to deploy generative AI chatbots directly into retail service environments. Today, those  systems operate across most of ING’s retail markets, handling between 65 and 75 per cent of routine customer queries.

“They help reduce friction,” Li Mandri explains, freeing human agents to focus on complex or emotionally nuanced interactions.

“And we are working to make these chatbots smarter… with the ability to execute actions, but also moving into voice,” he adds.

Voice agents represent the next interface layer – conversational systems capable not only of answering questions but also of resolving requests in real time.

“Voice bots will be able to understand what customers are asking, provide an answer, and also execute some of the actions already in that moment,” says Li Mandri.

Beyond retail, ING is embedding AI into operations and wholesale banking. Know-your-customer processes in wholesale banking – traditionally labour-intensive and document-heavy – are being augmented with AI, but also data extraction and summarisation tools are being used to improve front office productivity.

The same capabilities support sustainable finance structuring, where large datasets must be analysed to benchmark companies against their ESG (environmental, social and governance) peers.

Implementing AI, front to back

Front-office productivity is another emerging domain. Li Mandri says ING is testing AI tools that prepare client meeting briefs automatically, aggregating financial data, prior interactions and market context so that relationship managers can focus on advisory depth rather than administrative preparation. KYC, however, remains one of the most strategically critical battlegrounds. Anti-money-laundering systems are being re-engineered through a blend of machine learning and genAI. Machine learning flags suspicious transactions with greater precision; generative systems then assist analysts by extracting, summarising and contextualising case data.

“It’s about improving the efficiency… without compromising risk,” says Li Mandri.

Digital transformation is also reshaping ING’s engineering backbone. More than 5,000 software engineers now use AI as a peer-programming tool, augmenting coding productivity, accelerating testing cycles and shortening time-to-market for new digital services.

“It’s very well received,” Li Mandri notes.

Yet perhaps the most structurally transformative layer sits within agentic AI (agents set up to perform specific tasks to a set of instructions), which are now in pilot phase. Mortgage processing has been selected as the initial focus for this. Agents augmenting human underwriters by extracting data, validating policy compliance and generating documentation will shorten approval timelines, ‘potentially to within a day’, says Li Mandri. But human advisory roles
remain intact, he insists. “

Advice is still human and very important,” he stresses.

Looking ahead, ING’s roadmap centres on scaling AI across more domains and pilots withagentic AI, supported by a centralised analytics platform and workforce AI-fluency programmes. Li Mandri’s mandate is to build, deploy and govern those agents, ensuring their outputs remain aligned to customer value with augmentation over replacement, governance not opacity. In an industry still learning how to maximise the potential of AI, ING’s progress suggests the idea is not just conceptual. The AI fields are already in cultivation.


 

This article was published in The Paytech Magazine Issue #18, Page 29-30

HRF’s Bitcoin Development Fund Supports 26 Projects

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The Human Rights Foundation (HRF) has announced 1.5 billion satoshis in new grants through its Bitcoin Development Fund (BDF), expanding support for projects focused on Bitcoin infrastructure, privacy, and education.

The funding round targets open-source developers, researchers, and educational initiatives working across Bitcoin’s ecosystem, with an emphasis on tools that strengthen financial privacy and censorship resistance. According to HRF, the grants are intended to advance Bitcoin-based technologies that can support dissidents and human rights defenders operating under authoritarian regimes.

The organization estimates its efforts ultimately serve billions of people living under restrictive political systems, where access to open financial networks and uncensorable payment rails can be limited or surveilled. Supported projects will span software development, Bitcoin research, and grassroots education programs across Asia, Africa, Latin America, and the Caribbean.

HRF said the initiative is designed to reinforce Bitcoin’s role as a tool for financial freedom, enabling journalists, nonprofit organizations, and activists to more securely communicate, organize, and receive support globally through Bitcoin.

HRF’s grantees for the first quarter of 2026 include:

Bitcoin Privacy

Bitcoin Core P2P Privacy Enhancements

Bitcoin Core P2P privacy enhancements are an important area of ongoing work. Bitcoin Core developer Naiyoma is developing improvements to make it harder to track nodes running across multiple networks. This work strengthens the privacy of Bitcoin’s most widely used software implementations. HRF’s grant will enable Naiyoma to work full-time on these enhancements, helping activists and everyday users run Bitcoin infrastructure more safely in environments where financial activity may be monitored.

JoinMarket-NG

Bitcoin’s public ledger makes transactions traceable. CoinJoin is a privacy technique that improves this by combining multiple users’ transactions. This makes it harder to link payments to specific individuals. JoinMarket-NG is a new implementation of this technique that uses a peer-to-peer liquidity market, where some users provide liquidity and earn fees, while others pay for increased privacy. This grant will support development and the external security audits needed to fully launch JoinMarket-NG as an open-source tool that improves financial privacy for those who need it most.

Bitcoin Payments

Banxaas

Many people in heavily-authoritarian West Africa lack simple ways to convert between local currency and Bitcoin without banks or custodial services. Banxaas is a local platform created by Bitcoin developer Nourou that allows people to instantly exchange between the CFA franc and bitcoin without requiring accounts. Removing the many barriers common to centralized exchanges offers a way for more people in West Africa to use Bitcoin. HRF’s grant will help finalize Banxass’s mobile app development and integrate more mobile money providers into the service to expand bitcoin payments across the region.

ChapSmart

Tanzanians sending and receiving money across borders face some of the highest remittance fees in the world, losing a significant portion of every transfer to banks and intermediaries. ChapSmart, a Bitcoin application built by software developer Brian Mosha, helps Tanzanians send remittances, pay bills, and access Bitcoin — instantly and affordably — by bridging the Lightning Network directly to M-Pesa. It connects Bitcoin to existing payment rails, making the app usable for everyday activities. HRF’s grant will support development, outreach, and education to help Tanzanians preserve their savings and transact more freely under the country’s increasingly authoritarian regime.

Minmo

Centralized digital asset exchanges require users to submit sensitive user data. This creates surveillance risks for human rights defenders transacting under dictatorships. Minmo offers an alternative. It connects users with trusted local agents who facilitate exchanges between fiat currencies and bitcoin without relying on centralized platforms. Embedding these services into apps and community networks allows people to access bitcoin through trusted intermediaries rather than data-collecting exchanges. HRF’s grant will support Minmo’s operational growth, infrastructure, and expand access to bitcoin for dissidents facing financial repression.

Tando

In Kenya, most merchants rely on M-PESA, a mobile money system for digital payments. To provide Kenyans with greater financial freedom and global payment options, African technologist Sabina Waithira Gitau co-founded Tando, a payment app that lets anyone pay merchants with bitcoin while merchants receive Kenyan shillings through an integration with M-PESA. This allows Kenyans to spend bitcoin from their own Lightning wallets as everyday money in Kenya. HRF’s funding will support Tando’s expansion into new countries in the region, enabling more people to transact with the global mobile money that is bitcoin.

Tapnob

Across much of Africa, using bitcoin for everyday payments often requires high fees or complicated withdrawal processes. Tapnob addresses this by allowing users to buy bitcoin through local bank transfers and convert only the amount needed into local currency. This lets people cover daily expenses or send cross-border support in local currency, while preserving the value of their savings in bitcoin. HRF’s grant will support Tapnob’s expansion across the continent and the development of educational resources to help individuals use bitcoin to transact more freely.

Bitcoin Development

rawBit

Building secure applications on Bitcoin requires understanding how transactions and scripts work at the protocol level, which can pose a steep learning curve for new developers. The rawBit platform lowers this barrier with a free, open-source visual editor that lets users build and inspect raw transactions using drag-and-drop tools. Helping more developers understand Bitcoin’s underlying mechanics strengthens the open-source infrastructure upon which people under financial repression depend. While the platform already includes 14 interactive lessons, HRF’s grant will support new modules on advanced topics like Taproot and the Lightning Network. 

doblon8

Safely approving Bitcoin transactions without exposing sensitive data to the internet is a real concern for some users. One solution is air-gapped signing, where a Bitcoin transaction is made without ever connecting to the internet. Sparrow Wallet, a non-custodial Bitcoin wallet, supports this functionality using a webcam integration to scan QR codes. Bitcoin developer doblon8 is improving this feature by replacing outdated scanning software with faster, more reliable code. This grant will help strengthen this feature, making it easier and safer for human rights defenders to use Sparrow Wallet to manage their bitcoin.

Bitcoin Community

Bitcoin Benin

Benin remains tied to the CFA franc, a colonial-era monetary system that limits economic sovereignty and restricts access to the global economy. Bitcoin Benin, a local group of educators and developers, is building a Bitcoin Knowledge Hub to develop an alternative. The Hub will be a physical learning center and co-working space where individuals can learn how to use and build Bitcoin tools. HRF’s grant will support the hub’s infrastructure and the 2026 Bitcoin Mastermind conference, funding workshops and training programs expected to reach more than 1,000 participants.

Bitcoin for Good

Refugees, asylum seekers, and people living under authoritarian rule are often excluded from traditional banking systems. This makes it difficult for already vulnerable people to send, receive, and store their money. Bitcoin for Good, a program of the Groundswell Project founded by the late human rights activist Hadiyah Masieh, works with these groups to help use Bitcoin for remittances, savings, and direct donations. The program provides hands-on training for individuals who cannot rely on conventional financial services. HRF’s grant will fund community outreach and documentation to expand the program and replicate it in new communities.

Bitcoin House Malaysia

In Malaysia’s evolving political and regulatory environment, there is growing awareness of how financial systems and policies can influence public expression and community engagement. Bitcoin House Malaysia, an education hub in Kuala Lumpur founded by Nostr developer Shaun Time, offers hands-on learning for students to explore Bitcoin and other open-source technologies that promote free expression and financial autonomy. This grant will support operations and technical workshops, helping a local community build and use tools that strengthen resilience against censorship and centralized financial constraints.

Summer of Bitcoin

Students around the world — particularly those living under dictatorships and broken economies — lack a pathway to contribute to Bitcoin’s open-source development. Summer of Bitcoin meets this need by providing a global internship that pairs students with experienced mentors. Participants contribute to Bitcoin’s codebase through a developer track and improve user interfaces through a designer track while gaining hands-on experience. HRF’s funding will support student stipends and mentorship compensation, helping cultivate a more diverse group of contributors to Bitcoin’s development that reflects global needs.

Yes Bitcoin Haiti

In Haiti, persistent currency instability makes it difficult for many people to preserve the value of their work and savings. Local education initiative and community Yes Bitcoin Haiti is building a circular economy where individuals and merchants can earn, spend, and save without relying on the local currency. The initiative also undertakes educational outreach to local human rights defenders. HRF’s grant will support Bitcoin adoption and leadership development to equip Haitians and local civil society with the tools to transact freely in Bitcoin and preserve the value of their hard-earned labor within an open, borderless financial system.

Freedom Tech

The Activist Atlas

Oftentimes, activists meet at conferences, build powerful connections, and then lose contact once the event ends. To foster ongoing collaboration, Cato Policy Analyst Nick Anthony and Bitcoin educator Paco de la India created the Activist Atlas, an interactive digital platform that allows changemakers to stay connected, discover one another’s work, and coordinate year-round while introducing freedom technologies like Bitcoin for donations and Nostr for secure communication. HRF’s grant will support the platform’s launch and help grow a global network of activists using freedom tech to remain inspired and operational.

Krux

Securely holding bitcoin often requires specialized signing devices that rely on proprietary components. This makes them costly or difficult to obtain in corrupt regimes or weak economies. Krux is open-source software that transforms widely available devices into secure Bitcoin signing devices. It supports offline transactions and is available in 10 languages to broaden accessibility. HRF’s grant will support software developer Odudex in refining the project so more people can securely hold bitcoin under authoritarian regimes.

LearnNostr

Despite its potential as a censorship-resistant communication protocol, Nostr remains difficult for newcomers to understand and use. To lower these hurdles, educational platform LearnNostr provides a beginner-focused introduction that breaks the protocol down into practical lessons. Created by data scientist Cristy Almonte, the curriculum teaches real-world use cases (such as pseudonymous identities and secure publishing) for those living under the grip of dictators. HRF’s funding will support the platform’s development and help more people living under censorship communicate safely.

NetBlocks Internet Observatory

Authoritarian regimes increasingly shut down the internet and block platforms to silence dissent, obscure human rights abuses, and disrupt financial alternatives. NetBlocks, an internet observatory founded by technologist Alp Toker, tracks and documents these disruptions in real time. Its reporting creates a global record of internet censorship that helps hold authoritarian regimes accountable. HRF’s support will sustain this monitoring so activists and civil society can expose digital repression as it happens.

Bitcoin Research & Education

AmityAge
In many authoritarian countries, activists and civil society groups face currency instability, financial restrictions, and surveillance. To alleviate these pain points, Bitcoin initiative AmityAge launched the Bitcoin Educators Academy, a program that prepares local educators to teach financial sovereignty under repression. HRF’s support will fund event costs for five academies, training 75 educators in essential soft and communication skills to teach self-custody and the use of permissionless financial tools in their regions in a clear and understandable way.

Base58

For Bitcoin to function as freedom money, its development must remain neutral and independent. To better understand whether funding influences that independence, Base58, a technical Bitcoin education school, will publish “Funding and Open Source Contributions to Bitcoin,” a research report analyzing how funding sources shape open-source contributions using quantitative and visual data. HRF’s support will fund the personnel and equipment needed to complete this two-month study.

Bitcoin Policy Norway

Norway is considering a Bitcoin mining ban that could set a precedent across Nordic and European democracies if policymakers misunderstand Bitcoin’s broader role in financial freedom. This could provide cover for authoritarian regimes to implement more repressive policies. To address this risk, the Bitcoin Policy Norway launched Bitcoin Education for Norwegian Policymakers. This initiative will provide officials, aid organizations, and media with evidence-based research and testimonials from dissidents resisting authoritarian regimes on Bitcoin’s human rights applications. HRF’s grant will support operations, travel, and outreach to ensure decision-makers understand Bitcoin’s value and avoid policies that could restrict access to this technology.

BTC Shule

In Burundi, state control over financial access leaves little room for independent alternatives. BTC Shule, a local Bitcoin community founded by social entrepreneur ₿elyï, will launch an eight-month accelerator program to train developers to build open-source Bitcoin tools suited for this specific environment. The program will offer meetups and mentorship for participants. HRF funding will support a hackathon, stipends, and operational costs to build freedom tech tailored to Burundi’s local financial realities under an authoritarian regime.

Daniel Batten

Authoritarian regulation often determines whether people can legally use Bitcoin, shaping its potential as a tool for financial freedom in the places where it is most needed. Bitcoin researcher Daniel Batten will examine this issue through data-driven research and educational outreach. His work will focus on informing and training activists and civil society in countries such as Nigeria, Ethiopia, and Egypt. HRF’s grant will help fund the research, production, and outreach that enable individuals to use Bitcoin more freely.

DIYbitcoin

In repressive environments, access to Bitcoin tools can be costly, restricted, or monitored. DIYbitcoin is a resource that helps individuals bypass these barriers by teaching them how to build and operate their own hardware using open-source software and affordable, off-the-shelf components. The project will create a multilingual library of visual do-it-yourself guides tailored to communities across Latin America, Africa, and Asia. This grant will fund workshops and educator training to help local communities adopt self-custody and run their own Bitcoin infrastructure.

Economic Inclusion Group

Financial exclusion is increasingly used by dictators to silence civil society and restrict democratic participation. To document and expose this growing pattern, Jorge Jraissati, president of the Economic Inclusion Group, is leading a research initiative titled Documenting, Communicating, and Protecting Victims of Financial Exclusion. The project will document 100 cases of dissidents cut off from financial systems worldwide. It will share these stories through articles, podcasts, and social media to reach more than three million people. HRF’s grant will support researchers and operational costs to publish these cases.

SeedSigner User Guide

Hardware wallets are one of the safest ways to store Bitcoin, but they can be expensive and technically challenging, especially for those new to self-custody. SeedSigner, an open-source hardware wallet, allows users to build their own signing devices from inexpensive, widely available components. However, its limited documentation can make the setup process more challenging for newcomers. Easy, a contributor to the SeedSigner project, is creating a step-by-step user guide to simplify the process. HRF’s funding will support the development of this resource, helping human rights defenders with limited resources securely store and manage their bitcoin.

Geopolitical chess match fuels a broad risk asset rally as markets bet on resolution

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Here’s a sentence you don’t read every day: a potential military flashpoint in the Persian Gulf is somehow making markets go up.

Iran claims it controls the Strait of Hormuz, the narrow chokepoint through which roughly 20% of the world’s oil passes daily. President Trump says he won’t discuss a ceasefire until it reopens. With a presidential address to the nation expected tonight, Wall Street and crypto markets alike are placing a very specific bet: that this is posturing, not prelude.

The numbers tell the story

The S&P 500 has climbed roughly 4% since Monday. The Nasdaq, heavy with tech names that tend to amplify broader market moves, jumped nearly 6% over the same stretch.

Crypto followed the playbook. Bitcoin pushed near $69K, up about 2.7% in the last 24 hours. Ethereum climbed toward $2,100, gaining 3.6%. Solana rose to around $84, adding 3.0%. XRP traded near $1.35.

Look, these aren’t small moves for a week that started with headlines about naval standoffs and oil supply disruptions. The market is reading this situation and concluding that the adults will find a way to the negotiating table. Whether that confidence is warranted is a different question entirely.

What makes this rally particularly notable is the backdrop. The Fear and Greed Index sits at 8, which Alternative.me classifies as “Extreme Fear.” Last week it was 14. Also Extreme Fear. In English: sentiment is in the basement, yet prices are climbing the stairs. That divergence is the kind of thing that either resolves with a sharp sentiment recovery or a painful price correction back down to match the mood.

Bitcoin’s weekly chart still shows a 4.1% decline, meaning this rally is really just clawing back recent losses rather than breaking new ground. Context matters. A 2.7% daily gain sounds impressive until you realize the asset was down nearly twice that over the preceding days.

Why Hormuz matters to your portfolio

The Strait of Hormuz is essentially a 21-mile-wide bottleneck between Iran and Oman. About 17 million barrels of oil flow through it every single day. When someone threatens to close it, energy markets panic, and that panic cascades into everything else.

Iran has played this card before. During the 1980s “Tanker War,” both Iran and Iraq attacked commercial shipping in the Gulf. In 2019, Iran seized a British-flagged tanker. Each time, the threat alone was enough to spike oil prices and rattle global markets.

This time, though, the dynamic is different. Trump’s framing, that diplomatic talks are conditional on the strait staying open, creates a binary outcome that markets can actually price. Either Iran cooperates and talks begin, which is bullish. Or Iran escalates and the strait narrows or closes, which would send oil soaring and risk assets tumbling. Traders are betting heavily on door number one.

The presidential address tonight adds another variable. Markets historically react well to the mere promise of clarity, even before the actual content is known. The fact that Trump is addressing the nation suggests some form of resolution framework, or at least that’s the hopeful interpretation driving today’s bid.

What this means for crypto investors

Here’s the thing about crypto rallying alongside equities on geopolitical news: it completely undermines the “digital gold” narrative that Bitcoin maximalists love to tout. If Bitcoin were truly an uncorrelated safe haven, it would rally when stocks fall on war fears, not ride shotgun with the Nasdaq.

The correlation between Bitcoin and the S&P 500 has been stubbornly persistent throughout 2025. When risk is on, crypto goes up. When risk is off, crypto goes down, often harder. This week is just the latest confirmation.

One bright spot in the data: algorithmic stablecoins were the top-performing category over seven days, surging 39.9%. That’s a niche corner of the market, but it suggests capital is rotating into yield-generating strategies during the uncertainty. Investors who can’t stomach the volatility of majors are apparently parking funds where they can earn returns without directional exposure.

The extreme fear reading on the sentiment index deserves serious attention. Historically, readings below 10 have preceded significant rallies in crypto, simply because there’s almost no one left to sell. The March 2020 COVID crash bottomed with a Fear and Greed reading of 8. The June 2022 Terra/Luna aftermath saw similar levels before a multi-month relief rally.

That doesn’t mean a bottom is guaranteed here. The geopolitical situation is genuinely fluid, and a single inflammatory statement from Tehran or Washington could reverse the week’s gains in hours. The Strait of Hormuz isn’t a Fed meeting where outcomes can be modeled with reasonable probability. It’s a real-world conflict with real-world unpredictability.

Investors should also consider what happens after Trump’s address. If the speech delivers concrete steps toward de-escalation, the rally likely extends and fear gauges normalize. If it’s vague or aggressive, the market could give back everything it gained this week and then some. The asymmetry of outcomes here favors caution over conviction.

For those watching specific levels, Bitcoin’s $69K area has been a significant zone of interest going back to its 2021 cycle high. Reclaiming and holding above it would signal genuine strength. Failing there, as it has several times in recent months, would suggest the rally is just a short squeeze dressed up in geopolitical clothing.

Bottom line: Markets are pricing in a peaceful resolution to a standoff that hasn’t actually been resolved yet. That optimism has lifted everything from the S&P 500 to Solana. But with fear sentiment still at extreme levels and a presidential address that could go either way, this rally is built on hope rather than hard evidence. Hope is a fine trading thesis right up until it isn’t.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.