February Crypto Losses Fall to $26.5 Million – Lowest Monthly Total Since March 2025

Key Takeaways

February Losses Drop to Lowest Level in Eleven Months

Crypto hacks and scams resulted in $26.5 million in losses in February, according to blockchain security firm PeckShield. The figure represents the lowest monthly total recorded since March 2025.

PeckShield reported that 15 incidents were identified during the month. However, only two cases accounted for the majority of total losses. Compared with January, when losses exceeded $86 million, February’s total marks a 69.2% month on month decrease.

For users of crypto platforms, including exchanges, lending protocols and crypto enabled gambling services, the scale of exploit related losses is a key risk indicator. Lower aggregate losses do not eliminate operational risk, but they reflect a reduced financial impact from security incidents over the reporting period.

Two Major Exploits Account for Most of the Damage

The largest single incident in February was a $10 million theft from YieldBlox’s DAO managed lending pool. According to PeckShield, the attack involved price manipulation and occurred on Feb. 21.

On the same day, the decentralized identity protocol IoTeX suffered the second largest exploit of the month. Approximately $8.9 million was lost in what PeckShield described as a private key exploit.

Together, these two incidents accounted for the majority of the $26.5 million total. The remaining 13 incidents were comparatively smaller in scale. The concentration of losses in a limited number of cases contrasts with months that include so called mega hacks, where a single large scale breach significantly inflates total losses.

Fewer Mega Hacks and Market Volatility Influenced the Decline

A spokesperson for PeckShield told Cointelegraph that February did not see mega hacks comparable to the $1.5 billion Bybit hack that occurred in February 2025. The absence of such large scale events contributed to the lower overall figure.

PeckShield also linked the decline to broader market conditions. A sharp market correction in early February saw Bitcoin dip below $70,000. According to the firm, this shift redirected industry focus toward institutional deleveraging and mathematically driven sell offs.

During periods of heightened volatility, attention often moves away from exploiting protocol vulnerabilities and toward managing liquidity risks. In this environment, exploit activity can temporarily cool as market participants prioritize capital preservation and risk management.

For crypto users, including those funding betting accounts or holding balances on platforms, market volatility can therefore influence not only asset prices but also the operational threat landscape.

Security Controls and Monitoring Frameworks Show Signs of Maturation

Dominick John, an analyst at Kronos Research, told Cointelegraph that tighter risk controls and stronger counterparty standards may also have contributed to the decline in losses.

According to John, capital is becoming more selective, favoring protocols with more mature security frameworks. He pointed to improvements in audits, real time monitoring and institutional risk frameworks as factors that could support a continued reduction in losses if standards keep pace with ongoing innovation.

John also noted that artificial intelligence may play an increasing role in crypto security. AI driven tools can support automated code reviews, anomaly detection and pre deployment attack simulations. These measures aim to identify vulnerabilities earlier in a protocol’s lifecycle.

While these developments indicate structural improvements in how risks are managed, the ecosystem remains fast moving, and security requirements continue to evolve alongside new products and technical features.

Phishing Remains a Persistent Threat Despite Lower Wallet Drainer Losses

Although overall hack related losses declined in February, phishing continues to present a significant risk. PeckShield reported that losses tied to wallet drainer attacks dropped sharply in 2025, from $494 million to $83.85 million.

Even with that reduction, the firm described phishing as the most persistent threat vector. Rather than targeting smart contract code, attackers increasingly focus on manipulating individuals to gain access to sensitive information, including private keys and wallet credentials.

PeckShield emphasized the importance of multi signature cold storage solutions and strict protection of wallets and private keys, particularly for institutions and large holders. For individual users, including those interacting with crypto betting and gaming platforms, phishing risks often arise through impersonation attempts and fraudulent communications.

Our Assessment

PeckShield’s data shows that February’s $26.5 million in crypto related losses marks the lowest monthly level since March 2025 and a substantial decrease from January. The absence of mega hacks, combined with a period of market correction and volatility, coincided with reduced aggregate losses. At the same time, two incidents accounted for most of the damage, and phishing remains a persistent method of attack. The figures indicate a month of comparatively lower financial impact from exploits, while structural security challenges continue to shape the risk environment for crypto users and platforms.

11 US Senators Request Federal Probe Into Binance – Lawmakers Question Sanctions and AML Compliance

Key Takeaways

Lawmakers Call for Comprehensive Review of Binance Compliance Controls

A group of 11 US senators has formally requested a federal investigation into whether crypto exchange Binance is complying with US sanctions and Anti-Money Laundering requirements. In a letter sent Friday to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi, the lawmakers called for a prompt and comprehensive review of the exchange’s compliance framework.

The senators specifically asked federal authorities to examine Binance’s adherence to settlement agreements reached in 2023, as well as its broader AML and sanctions controls. The request reflects growing scrutiny of how large crypto exchanges manage cross border transactions and prevent restricted entities from accessing their platforms.

The letter was signed by Senators Chris Van Hollen and Ruben Gallego, along with Angela D. Alsobrooks, Andy Kim, Raphael Warnock, Tina Smith, Catherine Cortez Masto, Mark R. Warner, Elizabeth Warren, Jack Reed and Lisa Blunt Rochester.

Allegations of Iran Linked Transactions and Sanctions Evasion

The senators pointed to recent reports alleging that approximately $1.7 billion in digital assets flowed through Binance to Iranian entities linked to terrorism. According to the letter, these entities include groups connected to the Houthis and the Islamic Revolutionary Guard Corps.

Investigators reportedly identified more than 1,500 accounts accessed by users in Iran. The letter also referenced potential activity connected to Russian sanctions evasion. Lawmakers expressed concern that weaknesses in compliance systems could allow sanctioned individuals or organizations to move funds through digital asset platforms.

In addition to transaction allegations, the senators cited claims that some Binance compliance staff who uncovered suspicious transactions were later dismissed. The letter also referenced statements from law enforcement agencies suggesting that Binance had become less cooperative in providing customer information.

Separately, Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, launched a congressional inquiry earlier in the week. He sent a letter to Binance CEO Richard Teng requesting documents and internal records related to the exchange’s sanctions controls.

Concerns Over New Products and Regional Expansion

Beyond historical transactions, lawmakers also raised questions about Binance’s newer products. These include payment cards launched in parts of the former Soviet Union and partnerships tied to stablecoin initiatives.

According to the letter, such products could potentially facilitate sanctions evasion if compliance safeguards are not effectively enforced. The senators requested that federal agencies report by March 13 on any steps taken to examine Binance’s conduct and assess risks associated with these offerings.

For users of crypto based financial services, including those who rely on exchanges to fund betting or gaming accounts, regulatory scrutiny of this kind can affect platform operations, payment channels and regional availability. Exchanges operating across jurisdictions must align with sanctions frameworks, which can directly influence access for certain users and counterparties.

Binance Rejects Allegations and Disputes Media Reports

Binance has denied the allegations outlined in recent media coverage and in the senators’ letter. In a statement, a company spokesperson said the exchange identified and reported suspicious activity to authorities and does not allow Iranian users on its platform.

The company stated that recent media reports misrepresented its operations. Binance also disputed a report claiming it processed more than $1 billion in Iran linked transfers and denied dismissing investigators over the issue.

CEO Richard Teng has criticized a Wall Street Journal report that alleged $1.7 billion in Iran related activity, describing it as defamatory and seeking a retraction.

Regulatory Scrutiny Intensifies Around Major Crypto Exchanges

The senators’ request adds to ongoing oversight of major digital asset platforms in the United States. By calling on both the Treasury Department and the Department of Justice, lawmakers signaled that potential sanctions violations and AML failures fall under both financial regulatory and criminal enforcement frameworks.

The March 13 reporting deadline indicates that federal agencies are expected to provide lawmakers with information on whether any review or investigative steps are underway. The outcome of such reviews can shape how exchanges operate in the US market and how they structure compliance systems across international operations.

For international users, including those engaging with crypto exchanges for payments into online sportsbooks or casinos, compliance investigations can have practical implications. These may include tighter identity verification procedures, restrictions on certain jurisdictions, or changes to supported payment products.

Our Assessment

Eleven US senators have formally requested a federal investigation into Binance’s compliance with US sanctions and AML requirements, citing alleged Iran linked transactions, possible Russian sanctions evasion and concerns about internal compliance practices. Binance has denied the allegations and disputed related media reports. Federal agencies have been asked to report back by March 13 on any steps taken, placing the exchange under renewed regulatory scrutiny in the United States.

Bitcoin Treasury Companies Face Shareholder Revolt While Stablecoin Firms Report Strong Earnings – Market Tensions Reshape Corporate Crypto Strategies

Key Takeaways

Empery Digital Faces Shareholder Pressure Over Bitcoin Treasury Strategy

Empery Digital is facing a public challenge from one of its largest shareholders over its Bitcoin focused treasury model. A nearly 10% shareholder, Tice P. Brown, has called for sweeping changes, including the sale of the company’s roughly 4,000 Bitcoin holdings and the resignation of its chief executive officer and board.

In a letter to management, Brown argued that the company’s strategy of holding Bitcoin on its balance sheet has failed to maximize shareholder value. He demanded that capital be returned to investors instead of being tied up in digital assets.

Empery rejected these claims and defended its approach. The company transitioned its legacy business into a Bitcoin treasury model last year and has since accumulated 4,081 BTC. According to BitcoinTreasuries.NET data cited in the report, this places Empery among the top 25 largest public holders of Bitcoin.

The dispute highlights growing tension between activist investors and publicly listed firms that have adopted Bitcoin as a core balance sheet asset. After months of declining digital asset prices, companies with significant crypto exposure are facing renewed scrutiny from shareholders focused on capital allocation and volatility risks.

For investors evaluating companies with crypto treasury exposure, this case underscores how balance sheet strategies tied to digital assets can become central governance issues during market downturns.

Circle Reports Revenue Growth and Expanding USDC Supply

While Bitcoin treasury firms face pressure, stablecoin issuer Circle reported stronger than expected financial results for the fourth quarter. The company generated $770 million in revenue, marking a 77% increase compared to the same period a year earlier. Net income reached $133.4 million, or 43 cents per share, exceeding analyst expectations.

A key driver was the continued growth of USDC. By year end, the dollar backed stablecoin’s supply had risen 72% to $75.3 billion. The expansion reflects sustained demand for onchain dollar liquidity, even as broader crypto market conditions weakened.

For the full year, Circle reported $2.7 billion in revenue and a net loss of $70 million. The annual loss was largely attributed to stock based compensation tied to its initial public offering.

Following the earnings release, Circle’s shares rose more than 20%. The stock reaction reflected investor focus on revenue growth and the expanding stablecoin base.

The figures indicate that stablecoins continue to play a central role in digital asset markets. For users of crypto platforms, including those involved in trading or online betting, stablecoin liquidity remains a core component of transaction flows and onchain settlement.

PayPal Draws Takeover Interest Amid Ongoing Restructuring

Legacy payments company PayPal is reportedly attracting early stage takeover interest after a prolonged decline in its share price. According to Bloomberg, some potential buyers are evaluating a full acquisition, while others may seek specific business segments.

Discussions remain preliminary, and no formal offer has been announced. Stripe, described as a Bitcoin friendly payments company, later emerged as one of the interested parties.

PayPal’s stock rallied following the takeover reports, yet it remains down 37% over the past 12 months. The development comes as PayPal continues restructuring efforts and expands further into digital assets, including its proprietary stablecoin, PayPal USD.

For market participants, the situation reflects the competitive pressure facing established payment providers as they integrate digital asset services. Strategic interest in PayPal suggests that crypto related initiatives are increasingly intertwined with broader consolidation trends in digital payments.

$500 Million Stablecoin Initiative Connects DeFi Liquidity With Mortgage Lending

In a separate development, mortgage lender Better and Framework Ventures are launching a $500 million initiative designed to channel stablecoin liquidity into US mortgage lending.

Under the structure outlined in the report, Better will continue underwriting and issuing home loans, while funding is sourced through a stablecoin ecosystem. The arrangement aims to connect blockchain based liquidity with traditional real estate finance.

Tokenized real world assets have long been discussed within crypto markets. This initiative represents a large scale attempt to deploy stablecoin capital into housing finance, even as broader digital asset prices remain volatile.

For crypto users, the structure illustrates how stablecoins are being positioned not only as trading instruments but also as funding tools for conventional financial products.

Our Assessment

The developments show diverging dynamics within the crypto related corporate landscape. Empery Digital’s shareholder dispute highlights governance risks for companies that rely heavily on Bitcoin as a treasury asset during periods of price weakness. At the same time, Circle’s revenue growth and expanding USDC supply point to sustained demand for stablecoin based liquidity. PayPal’s reported takeover interest and the $500 million mortgage initiative further demonstrate how digital asset strategies are influencing both traditional payment firms and real world finance structures. Together, these events reflect how corporate crypto exposure is increasingly scrutinized by investors while stablecoin infrastructure continues to expand into new use cases.

XRPL Foundation Patches Critical Signature Validation Flaw – Amendment Blocked Before Mainnet Activation

Key Takeaways

Critical Flaw Identified in Signature Validation Logic

The XRPL Foundation has confirmed that it addressed a critical vulnerability in the XRP Ledger before the affected code reached mainnet. According to the foundation, the issue was found in the signature validation logic of a yet to be enabled amendment.

The vulnerability was identified on February 19 by Pranamya Keshkamat, a security engineer at cybersecurity firm Cantina, together with Cantina’s autonomous AI security tool. The flaw was described as a critical logic error within the signature validation code batch.

If activated, the amendment could have enabled an attacker to execute transactions from victim accounts without possessing their private keys. This would have included the ability to drain funds and modify ledger state. The XRPL Foundation stated that the amendment was still in its voting phase at the time of discovery and had not been activated on mainnet. As a result, no funds were at risk.

Potential Impact on Funds and Ecosystem Stability

The XRPL Foundation said the vulnerability could have had significant consequences if exploited at scale. In addition to potential theft of funds, the flaw might have allowed attackers to alter the ledger state in unauthorized ways.

The foundation also warned that a successful large scale exploit could have destabilized the broader XRP Ledger ecosystem. It noted that such an event could have led to substantial loss of confidence in XRPL and significant disruption.

Hari Mulackal, CEO of Cantina and Spearbit, stated that the autonomous bug hunting system known as Apex discovered the issue. He said that, had the flaw been exploited, it could have represented the largest security hack by dollar value in the world, with nearly 80 billion dollars at direct risk. The report indicated this figure possibly referred to XRP’s market capitalization.

Emergency Measures and Validator Response

Following the disclosure, the XRPL Foundation and Ripple engineering teams validated the report and began patching the code. The vulnerability was identified through static analysis of the rippled codebase conducted by the AI security tool.

After confirming the issue, validators were advised to vote against the amendment to prevent it from being activated. In addition, an emergency release, rippled version 3.1.1, was published on February 23. This release was designed to block the amendment from going live.

The coordinated response ensured that the vulnerable code was not deployed to mainnet. According to the XRPL Foundation, the amendment remained unactivated, and no user funds were exposed during the process.

AI Tools Increasingly Used in Code Security Reviews

The discovery highlights the growing role of artificial intelligence in cybersecurity. Cantina’s autonomous AI system identified the vulnerability through automated code analysis and generated a disclosure report that enabled engineers to act before deployment.

AI driven vulnerability scanners are being used more frequently to identify potential flaws that may be overlooked during manual reviews. The report noted that Anthropic released Claude Code Security, an AI cybersecurity vulnerability scanner, on February 20. The company claims the system can reason like a skilled security researcher.

The use of AI based tools in this case allowed the vulnerability to be detected during the amendment’s voting phase, before activation on mainnet. This timing was central to preventing any direct financial impact.

Why This Matters for XRP Ledger Users

For users of the XRP Ledger, including those who hold XRP or rely on the network for transactions, the incident underscores the importance of amendment review processes and validator oversight.

The fact that the amendment had not yet been activated meant that the existing mainnet infrastructure was not exposed to the flawed code. The combination of AI based detection, coordinated disclosure, and validator action prevented the vulnerability from affecting live transactions.

In blockchain systems where amendments are subject to voting before activation, the review phase acts as a safeguard. In this instance, that mechanism provided time for identification, disclosure, and remediation.

Our Assessment

The XRPL Foundation confirmed that a critical signature validation flaw was discovered and patched before the affected amendment reached mainnet. The vulnerability, identified by a Cantina security engineer and an autonomous AI tool, could have enabled unauthorized transactions without private keys. Validators were instructed to reject the amendment, and an emergency software update was released to block activation. According to the foundation, no funds were at risk and the ledger remained secure throughout the process.

Bitcoin ETFs Record $506.5 Million in Daily Inflows – Institutional Demand Rebounds as BTC Trades Near $69,000

Key Takeaways

Largest Daily Inflows in Three Weeks Signal Shift in ETF Flows

U.S. spot Bitcoin exchange traded funds posted $506.5 million in net inflows on Feb. 25, marking the strongest single-day result in three weeks. The data reflects a reversal after a prolonged period of redemptions that had weighed on overall sentiment.

The latest figure follows $257.7 million in inflows on Feb. 24. Combined, the two sessions added more than $750 million to spot Bitcoin ETFs. Prior to this turnaround, the market had seen five consecutive weeks of net outflows totaling approximately $3.8 billion.

Despite the two-day rebound, year-to-date flows remain negative. Net outflows for 2026 stand at just under $2 billion, underscoring that the recent gains have not yet offset earlier redemptions.

Notably, none of the 11 active U.S. spot Bitcoin ETFs reported outflows on Feb. 25. The absence of redemptions across all listed products marks a clear change from the pattern observed in late January and early February.

BlackRock and Grayscale Lead the Latest Buying Activity

BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the largest share of the daily inflows. The fund recorded $297.4 million in net additions, representing nearly 60 percent of the total capital entering the sector on Feb. 25.

Grayscale’s Bitcoin Trust (GBTC) posted $102.5 million in inflows. The positive session is notable given GBTC’s cumulative net outflows of about $25.9 billion since its conversion to an ETF structure. The latest data marks a rare instance of net buying for the fund in recent months.

Other products also contributed to the overall increase. Bitwise Asset Management’s BITB added $39.4 million, while Fidelity’s FBTC attracted $30.1 million. Invesco’s BTCO and VanEck’s HODL recorded net inflows as well, though specific figures were not disclosed in the source material.

The broad participation across multiple issuers indicates that the inflows were not concentrated in a single product, but spread across several of the largest spot Bitcoin ETFs in the United States.

Bitcoin Price Rebounds Toward $70,000 Before Pullback

The renewed ETF demand coincided with a recovery in Bitcoin’s price. During the Feb. 25 session, BTC rose to near $70,000, representing a gain of more than 7 percent from its weekly low below $64,000.

At the time of writing, Bitcoin was trading around $67,000 after retreating from the session highs. The pullback followed a strong day for crypto related equities, which also recorded gains during the rally.

Shares of the iShares Bitcoin Trust ETF declined in the subsequent session. IBIT fell by $1.19, or 3.02 percent, to $38.04. The fund is designed to track the price of Bitcoin, offering investors exposure to BTC without directly holding the asset.

Institutional Infrastructure Remains in Place After Volatile Period

The recent inflows mark the highest daily total in three weeks and follow a period in which institutional participation appeared to slow. The five-week stretch of outflows had raised questions about sustained demand for spot Bitcoin ETFs.

However, the underlying market structure differs from previous crisis periods. The source material notes that, unlike in 2022 when companies such as FTX and Celsius collapsed, the current environment has not been defined by failures of major crypto infrastructure providers.

ETF outflows have largely stabilized in recent days, and long term holders’ buying capacity has grown, according to the same report. In addition, major U.S. banks continue to develop crypto related products. These factors indicate that the broader institutional framework supporting Bitcoin investment vehicles remains operational.

If inflows continue through the end of the week, spot Bitcoin ETFs could record their first weekly net gain in more than a month. For market participants, sustained inflows would signal renewed institutional allocation to regulated Bitcoin products.

Relevance for Crypto Market Participants

For international users monitoring crypto markets, ETF flows provide a measurable indicator of institutional capital movements. Spot Bitcoin ETFs offer regulated exposure to BTC and are widely followed as a gauge of demand from asset managers and large investors.

Changes in ETF flows can coincide with short term price movements, as seen in the recent rebound from below $64,000 to near $70,000. While price volatility remains, the return of net inflows suggests that institutional participation has not exited the market despite earlier redemptions.

For users evaluating crypto platforms, sportsbooks, or iGaming services that rely on Bitcoin liquidity and pricing, ETF driven demand may influence broader market conditions. Price stability and capital inflows can affect trading volumes, treasury management, and payment flows across crypto based services.

Our Assessment

The $506.5 million in net inflows on Feb. 25 represents the strongest daily result for U.S. spot Bitcoin ETFs in three weeks and follows an additional $257.7 million the day before. The rebound interrupts a five-week period of $3.8 billion in outflows and occurred as Bitcoin traded near $69,000 before settling around $67,000. Participation across multiple major issuers, led by BlackRock’s IBIT and supported by Grayscale’s GBTC, indicates a broad based return of capital to spot Bitcoin ETF products, even though year-to-date flows remain negative.

WLFI Proposes 180-Day Governance Staking and USD1 Incentives – Token Holders Face Lock-Up Requirements for Voting Rights

Key Takeaways

WLFI Seeks to Introduce 180-Day Governance Staking Model

World Liberty Financial has presented a proposal to modify its governance structure by introducing a staking requirement for voting participation. Under the plan, token holders would need to lock their WLFI tokens for at least 180 days in order to take part in governance decisions.

According to the proposal, the objective is to ensure that voting power remains with participants who demonstrate long-term alignment with the protocol. The framework is designed to reduce the influence of short-term holders or speculative participants.

Voting power would be calculated based on two factors: the number of tokens staked and the remaining time in the lock-up period. Token holders who lock their tokens would retain the ability to vote during the staking period.

For the governance vote to be valid, at least one billion voting tokens must participate. A majority vote in favor would be required for the proposal to pass. CoinGecko lists more than 27 billion WLFI tokens currently in circulation.

2% Annual Reward Tied to Active Governance Participation

The proposed staking model includes a financial incentive. Token holders who stake their WLFI for the 180-day period would receive a 2% annual percentage rate. However, eligibility for this reward would depend on active governance participation.

Specifically, stakers must take part in at least two governance votes during the lock-up period to qualify for the yield. This condition links financial rewards directly to voting activity rather than passive token holding.

Such a structure combines governance engagement with token incentives. Participation becomes both a voting mechanism and a yield-generating activity, provided that users meet the defined criteria.

Additional Incentives to Drive USD1 Stablecoin Usage

Beyond governance changes, the proposal also outlines measures to promote adoption of WLFI’s stablecoin, USD1. The company has previously introduced rewards programs and formed partnerships with institutional platforms and other protocols to increase usage.

Under the new plan, users who stake WLFI tokens would gain additional benefits tied to USD1 activity. USD1 deposits made on WLFI Markets, the project’s trading and lending platform, would qualify for unspecified incentives from the decentralized finance protocol Dolomite.

The structure links staking activity with stablecoin utilization. By connecting governance participation to USD1 usage, WLFI aims to integrate its token and stablecoin ecosystems more closely.

USD1 currently ranks as the fifth-largest stablecoin by market capitalization at $4.7 billion. In comparison, the overall stablecoin market exceeds $309 billion, according to data from DefiLlama. Tether’s USDT holds the largest share with more than $183 billion and a market dominance of 59%. Circle’s USDC follows with a market capitalization of $75 billion.

Node and Super Node Structure Introduces Conversion and Off-Ramp Access

The proposal also defines additional privileges for large token holders categorized as “Nodes” and “Super Nodes.”

Holders with at least 10 million WLFI tokens would qualify as Nodes. These participants would gain access to service providers offering 1:1 conversion of other major stablecoins such as USDC and USDT into USD1. They would also have access to a direct off-ramp into fiat currency.

Super Nodes, defined as holders with more than 50 million WLFI tokens, would receive access to the same features. In later phases of the rollout, Super Nodes are expected to gain access to partnership opportunities and a revenue-sharing framework.

The rollout would take place in three phases if the proposal is approved. The first phase would introduce staking rewards and USD1 deposit incentives. The second phase would activate the 1:1 stablecoin conversion feature. The final phase would provide partnership access and implement the revenue-sharing structure for Super Nodes.

Stablecoin Market Context and Competitive Position

The proposal comes at a time when the stablecoin market is concentrated among a small number of large issuers. With a market capitalization of $4.7 billion, USD1 remains significantly smaller than USDT and USDC.

USDT’s market capitalization exceeds $183 billion, while USDC stands at $75 billion. Together, these two stablecoins account for the majority of the more than $309 billion total stablecoin market.

Within this competitive landscape, WLFI’s strategy combines governance incentives, staking rewards, and utility features such as stablecoin conversion and fiat off-ramps. The structure ties token holding, governance participation, and stablecoin adoption into a single framework.

Our Assessment

World Liberty Financial’s proposal introduces a mandatory 180-day staking period for governance voting, combined with a 2% annual reward linked to active participation. The plan also connects governance staking with incentives for using the USD1 stablecoin and introduces tiered privileges for large token holders, including stablecoin conversion and fiat off-ramp access.

If approved by the required one billion voting tokens and majority support, the measures would be implemented in three phases. The proposal integrates governance rules, staking rewards, and stablecoin utility within WLFI’s existing ecosystem, where USD1 currently ranks as the fifth-largest stablecoin by market capitalization.

Payoneer Files for US National Trust Bank Charter – Stablecoin Plans Expand in Growing Fintech Push

Key Takeaways

Payoneer Submits Application to the Office of the Comptroller of the Currency

Global financial services firm Payoneer has applied for a national trust banking charter in the United States. The company confirmed that it filed with the Office of the Comptroller of the Currency, or OCC, to establish an entity named PAYO Digital Bank.

The application places Payoneer among a growing number of fintech and crypto focused companies seeking entry into the US federal banking system. A national trust charter would allow the company to operate under federal oversight and expand its range of regulated financial services.

The move follows a recent partnership between Payoneer and stablecoin infrastructure firm Bridge. That agreement was announced one week before the OCC filing and is intended to add stablecoin capabilities to Payoneer’s platform, which primarily serves cross border transactions.

Planned Stablecoin PAYO-USD and Intended Use Cases

As part of its charter application, Payoneer said it intends to issue a stablecoin named PAYO-USD. According to the company, the token would be compliant with the GENIUS Act and designed to function as the holding currency in Payoneer wallets.

The proposed stablecoin would also allow customers to send and receive stablecoins directly through the platform. If approved by the OCC, Payoneer would be authorized to manage the reserves backing PAYO-USD, provide custodial services, and enable customers to convert stablecoins into their local currencies.

Payoneer’s customer base includes nearly two million users, most of whom are small and medium sized businesses. The company stated that a regulated stablecoin could simplify cross border trade by providing a digital dollar based settlement option within its ecosystem.

According to Payoneer, stablecoins could play a meaningful role in global trade. The company also said that its offering could help advance the use of the US dollar in international transactions, reduce barriers for American companies operating abroad, and expand the dollar’s presence in non dollar payment corridors.

Part of a Broader Wave of Crypto and Fintech Charter Applications

Payoneer’s filing comes amid a broader wave of applications from crypto and fintech companies seeking US bank charters.

Earlier this week, the OCC granted conditional approval to Crypto.com for a banking charter. In December, several crypto firms secured charters, including Circle, Ripple, Fidelity Digital Assets, BitGo and Paxos.

Other applicants are still awaiting decisions. World Liberty Financial, associated with the Trump family, applied in January to expand the use of its USD1 stablecoin. Crypto trading platform Laser Platform also submitted an application in January. Coinbase has been waiting for a decision on its application since October.

These developments indicate increased interest from digital asset firms in obtaining federal banking status. A national trust charter can provide a regulated framework for activities such as custody, reserve management and digital asset related financial services.

In December, Comptroller of the Currency Jonathan Gould stated that new entrants into the federal banking sector are positive for consumers, the banking industry and the broader economy. He said that additional participants can provide access to new products and services, new sources of credit and contribute to a competitive and diverse banking system.

Relevance for Cross Border Payments and Digital Asset Users

Payoneer’s core business focuses on cross border payments. The company positions stablecoins as a tool that could streamline international settlements, particularly for small and medium sized enterprises engaged in global trade.

If PAYO-USD is approved and launched, customers would be able to hold balances in a stablecoin within their Payoneer wallets. They could also convert those holdings into local currencies, subject to regulatory approval and operational implementation under the OCC framework.

For digital asset users and businesses that rely on cross border transfers, a federally regulated stablecoin issuer could provide an alternative settlement mechanism within a supervised US banking structure. At the same time, the outcome of the OCC review process will determine whether Payoneer can proceed with its plans.

Our Assessment

Payoneer has formally entered the group of fintech and crypto companies seeking US national trust bank charters. The company’s application to establish PAYO Digital Bank is directly linked to its plan to issue the PAYO-USD stablecoin and expand regulated crypto related services. With Crypto.com having received conditional approval and several other firms awaiting decisions, the OCC is currently reviewing multiple applications that could shape how stablecoins and digital asset services operate within the US federal banking system.

Crypto.com Receives Conditional US National Trust Bank Approval – Federal Oversight Would Expand Digital Asset Custody and Staking Services

Key Takeaways

Conditional Approval From the OCC

Crypto.com has announced that it has received conditional approval from the Office of the Comptroller of the Currency to establish a national trust bank in the United States. The decision marks a regulatory step that would place part of the company’s digital asset operations under direct federal supervision once all requirements are met.

The planned entity will be formed as Foris Dax National Trust Bank and will operate as Crypto.com National Trust Bank after full authorization. The OCC approval is conditional, meaning Crypto.com must satisfy specific pre opening requirements before it can begin operations under the federal charter. These requirements relate to capital levels, governance structures, risk management controls, and internal policies.

Until final approval is granted, the bank cannot commence operations as a federally supervised national trust bank.

Scope of Services: Custody, Staking, and Trade Settlement

The proposed national trust bank will function as a limited purpose institution. It will not accept customer deposits and will not issue loans. Instead, it will focus exclusively on digital asset services.

According to the announcement, these services include institutional grade custody, staking, and trade settlement. Custody refers to the safeguarding of digital assets on behalf of clients. Staking involves participating in blockchain validation processes where applicable, while trade settlement covers the processing and finalization of digital asset transactions.

For users of crypto platforms, especially institutional clients, federally supervised custody can affect how assets are held and managed. Oversight by the OCC introduces a single federal regulatory framework for the trust bank’s activities, as opposed to oversight solely at the state level.

Relationship to Existing State Regulated Entity

Crypto.com already operates Crypto.com Custody Trust Company, a non depository trust firm regulated by the New Hampshire Banking Department. The new federal charter would exist alongside this state level entity.

With the addition of a national trust bank, Crypto.com aims to offer what it describes as a one stop qualified custodian under federal oversight. In practical terms, this would allow certain institutional clients to work within a unified federal regulatory structure rather than relying solely on state supervision.

CEO Kris Marszalek stated that the conditional approval reflects the company’s focus on compliance and on providing regulated services. He described the development as a step toward meeting institutional demand for custody solutions under what he called a gold standard of federal oversight.

Political Context and Corporate Activity

According to Bloomberg, Marszalek was among the first crypto executives to meet with Donald Trump at Mar a Lago following his 2024 election victory. The company later contributed 1 million dollars to Trump’s inauguration committee and made eight figure donations to MAGA Inc., a conservative political action committee. In January, Crypto.com added another 5 million dollars to MAGA Inc., according to a recent filing.

Separately, earlier this month Marszalek acquired the AI.com domain for approximately 70 million dollars in cryptocurrency. The purchase was brokered by Larry Fischer and is described as the largest domain name transaction to date. The domain had previously been listed at 100 million dollars. Marszalek plans to launch a consumer AI platform under that brand.

These developments are separate from the national trust bank application but form part of the broader corporate activity surrounding the company.

Part of a Broader Trend Among Digital Asset Firms

Crypto.com is not alone in pursuing a national trust charter. The announcement places the exchange among a group of digital asset firms that have sought similar federal approvals. Companies mentioned include Circle Internet Group, Paxos, BitGo, and Fidelity Digital Assets.

For institutional investors, federal oversight by the OCC can provide regulatory clarity and a standardized supervisory framework. In the context of digital asset custody, this may simplify compliance processes for entities that require federally regulated counterparties.

The national trust bank structure differs from a traditional commercial bank model because it does not involve deposit taking or lending. Instead, it is tailored to specific fiduciary or custodial functions.

What the Conditional Status Means

Conditional approval does not equate to immediate operational status. Crypto.com must meet the OCC’s pre opening conditions before the charter becomes fully effective. These conditions typically relate to demonstrating sufficient capital, establishing governance and board structures, implementing risk management systems, and finalizing internal compliance policies.

Only after the OCC confirms that these requirements have been satisfied can the institution open as a national trust bank. Until then, Crypto.com’s existing regulated activities continue under its current structure, including its New Hampshire regulated custody trust company.

Our Assessment

The conditional approval from the OCC allows Crypto.com to move forward with plans to establish a federally supervised national trust bank focused on digital asset custody, staking, and trade settlement. The institution will operate as a limited purpose trust bank and will not engage in deposit taking or lending. Final authorization depends on meeting capital, governance, and risk control requirements set by the regulator. The development places Crypto.com among several digital asset firms seeking national trust charters and expands the company’s regulatory footprint beyond its existing state regulated custody entity.