EU Opens MiCA 2.0 Consultation – Stablecoins and DeFi Rules Under Review

Key Takeaways

European Commission Seeks Feedback on MiCA Revisions

The European Commission has launched a formal comment period to gather feedback on potential changes to its Markets in Crypto Assets regulation. The initiative follows the full application and enforcement of MiCA, which began on December 30, 2024, with the first licenses issued in early 2025.

MiCA created a harmonised regulatory framework for crypto assets across European Union member states. It introduced a single rulebook designed to provide consumer protection and legal clarity for crypto businesses operating across the bloc.

The current consultation is widely described within the industry as the first step toward what could become MiCA 2.0. According to the Commission, the review is divided into four main areas: the regulatory scope and definitions for crypto assets other than asset-referenced tokens and e-money tokens, requirements for e-money tokens and asset-referenced tokens and their issuers, the legal framework for crypto-asset service providers, and topics not covered in the initial regulation, including decentralised finance and prediction markets.

For crypto users and platform operators, the outcome of this review may determine how services involving stablecoins, decentralised protocols or event-based markets are treated under EU law.

Stablecoins at the Center of Regulatory Debate

The section addressing e-money tokens and asset-referenced tokens is considered one of the most significant parts of the consultation. Stablecoins fall within these categories under MiCA.

Regulatory treatment may depend on how stablecoins are used in practice. If authorities view them mainly as trading instruments, the focus is likely to remain on investor protection and market integrity. If they are treated as payment infrastructure, supervisory attention could shift toward redemption rights, liquidity management, reserve composition, operational resilience and reporting obligations.

Catarina Veloso, director of regulatory and compliance at Notabene, stated that the risks associated with stablecoins depend on their scale, user base and links to other parts of the financial system. This functional approach could influence how detailed future requirements become.

Industry participants are also calling for targeted adjustments. Katie Harries, director and head of policy for Europe at Coinbase, said refinements could make euro-denominated stablecoins more competitive. She highlighted reserve rules, rewards and the so-called multi-issuance model as areas for recalibration.

Under the current MiCA framework, issuers of e-money tokens are prohibited from offering interest. According to Veloso, this restriction may reduce the competitiveness of euro stablecoins and potentially shift users toward foreign-currency stablecoins or yield structures outside the regulated framework. Harries indicated that non-interest incentives such as cashback or loyalty programs could be considered as an alternative, noting that such features are common in traditional payment services.

For users of crypto betting or iGaming platforms that rely on stablecoin payments, any changes to issuance, reserve management or incentive rules could affect which tokens are available and under what conditions they are offered within the EU.

Defining DeFi and Responsibilities of Service Providers

MiCA currently does not apply to fully decentralised crypto-asset service providers operating without intermediaries. However, the consultation signals that regulators are examining whether and how decentralised finance should be addressed.

Veloso noted that decentralisation is rarely binary. Policymakers must determine which indicators are relevant when assessing whether a platform is genuinely decentralised. Potential factors include control over protocol governance, possession of administrative keys, influence over front-end interfaces, revenue capture mechanisms and the ability to upgrade or modify smart contracts.

Miroslav Đurić, senior associate at Taylor Wessing, pointed out that many regulated crypto-asset service providers already connect clients to decentralised finance platforms. Because these platforms fall outside MiCA, regulators are now considering whether service providers should conduct due diligence before granting access.

One option under discussion would allow service providers to connect clients only to decentralised platforms that meet certain certification standards under a potential new regime. Such a move would affect how centralised exchanges and intermediaries integrate decentralised products.

Prediction Markets Face Overlapping Regulatory Questions

The consultation also addresses prediction markets, which were not covered explicitly in MiCA 1.0. Currently, there is no unified regulatory structure for such platforms in the EU, and they are banned in some member states.

The Commission is seeking feedback on whether prediction markets provide economic benefits to consumers and whether they fall under MiCA or the Markets in Financial Instruments Directive. According to Đurić, the regulatory classification will depend on the nature of the event contracts offered.

Depending on contract design, a platform operator could fall under multiple frameworks, including financial market regulation, gambling law or crypto asset regulation. For operators and users in the crypto betting sector, this distinction is particularly relevant, as it may determine licensing requirements and cross-border availability.

Timeline and Legislative Outlook

The comment period for the consultation runs until August 31. Stakeholders from across the crypto industry have indicated that they plan to remain engaged throughout the process.

However, legislative change at the EU level typically involves lengthy procedures. According to Đurić, given the complexity of the issues raised, concrete legislative proposals are unlikely to be adopted before 2028.

Until then, the current MiCA framework remains in force, including its provisions on stablecoin issuance, licensing of crypto-asset service providers and consumer protection measures.

Our Assessment

The European Commission’s consultation marks the first formal step toward revising MiCA after its full implementation in late 2024. The review focuses on stablecoins, decentralised finance, crypto-asset service provider obligations and prediction markets – areas that have gained prominence since the original framework was drafted.

For crypto users and operators, including those active in crypto-based betting and online gambling, the process may clarify how stablecoins can be structured, how decentralised platforms are assessed and which regulatory regimes apply to event-based markets. Any legislative amendments are expected to follow an extended EU process, with potential adoption not anticipated before 2028.

CFTC Permanently Bans Celsius Founder Alex Mashinsky From Trading – Settlement Concludes First Case Against a Crypto Lending Platform

Key Takeaways

CFTC Settlement Imposes Lifetime Market Ban

The US Commodity Futures Trading Commission has resolved its enforcement action against Celsius Network founder Alex Mashinsky, permanently barring him from trading in markets under the agency’s supervision. According to the regulator, a court consent order not only imposes a lifetime trading ban but also prohibits Mashinsky from ever registering with the CFTC.

The order brings to a close the CFTC’s case first filed in 2023. With the settlement, the agency ends what it described as its first enforcement action against a digital asset lending platform.

The CFTC stated that Mashinsky and Celsius engaged in a scheme to defraud hundreds of thousands of customers. The regulator alleged that the company misrepresented the safety, profitability and regulatory compliance of its digital asset based finance platform.

As a result of the order, Mashinsky is now permanently excluded from participating in US commodities, futures and derivatives markets. Earlier this year, the CFTC and the US Securities and Exchange Commission issued guidance stating that they consider most major cryptocurrencies to be commodities. This classification places a broad segment of the crypto market within the CFTC’s oversight, increasing the practical scope of the trading ban.

Background: Celsius Collapse and Criminal Conviction

Celsius Network was a crypto lending platform that received approximately 20 billion dollars in customer funds, according to the CFTC’s allegations. The agency said the company made risky investments in order to meet the returns it had promised users.

The platform collapsed during a major market drawdown in 2022. The failure of Celsius became one of the high profile breakdowns in the digital asset lending sector during that period.

In May 2025, Mashinsky was sentenced to 12 years in prison after pleading guilty to securities and commodities fraud. Prosecutors accused him of misleading customers about the safety of the Celsius platform. The prison sentence followed his guilty plea and addressed conduct related to the platform’s operations and representations to users.

The CFTC settlement marks one of the final regulatory actions pending against Mashinsky. However, it does not conclude all legal proceedings connected to his role at Celsius.

Other Regulatory Actions: FTC and SEC Proceedings

In addition to the CFTC case, Mashinsky previously settled a complaint with the US Federal Trade Commission. In April, that agreement permanently barred him from working with any product or service that can be used to deposit, exchange, invest or withdraw assets. This restriction effectively prevents him from participating in crypto or broader financial services activities covered by the FTC order.

Separate civil charges brought by the US Securities and Exchange Commission in July 2023 remain unresolved. The SEC has accused Mashinsky of conducting an unregistered securities offering, misrepresenting Celsius’ business and safety practices and manipulating the price of the platform’s CEL token.

In late May, the SEC informed a federal court that it had engaged in substantive settlement discussions with Mashinsky. At that time, no agreement had been reached. The court granted the regulator’s request for an additional 60 days to continue negotiations.

Efforts to Vacate Criminal Sentence

On May 26, Mashinsky filed a motion seeking to vacate his 12 year criminal sentence. In his filing, he argued that his legal counsel had been ineffective and that evidence in the case had been tainted by authorities’ misconduct. He also claimed that Sam Bankman-Fried, co founder of FTX and a convicted fraudster, was responsible for manipulation of the CEL token.

A court ordered prosecutors to respond to Mashinsky’s request by mid August. The outcome of that motion remains pending.

Regulatory Significance for Crypto Markets

The conclusion of the CFTC’s first case against a digital asset lending platform provides a reference point for how US commodities regulators address misconduct in crypto related financial services. By imposing a lifetime trading and registration ban, the agency has removed Mashinsky from participation in markets it oversees.

Because the CFTC and SEC have stated that most major cryptocurrencies qualify as commodities, the trading prohibition covers a substantial portion of the crypto derivatives and commodities landscape in the United States. For market participants, including users of crypto based financial and trading platforms, the case underscores the regulatory consequences tied to representations about safety, returns and compliance.

At the same time, the ongoing SEC proceedings and the motion to vacate the criminal sentence indicate that legal exposure tied to the Celsius collapse has not fully concluded.

Our Assessment

The CFTC’s settlement with Alex Mashinsky permanently bars him from trading and registering in US commodities markets and closes the agency’s first enforcement action against a digital asset lending platform. Combined with his prior prison sentence and FTC ban, the order significantly restricts his future involvement in crypto and financial markets, while SEC proceedings and post conviction motions remain active.

Litecoin Spot ETF Holds Around $9 Million After Eight Months – Altcoin ETF Demand Faces First Real Test

Key Takeaways

LTCC Assets Remain Limited Despite First-Mover Status

Canary Capital’s Litecoin ETF, trading under the ticker LTCC on Nasdaq, has been listed for nearly eight months. According to TradingView data cited in the source material, the fund has recorded about $9.3 million in trailing-year inflows. That level of demand remains modest compared with the early flow figures reported for spot Bitcoin and Ether ETFs during their first quarters.

LTCC began trading on October 28, 2025, becoming the first US-listed spot ETF focused on a digital asset other than Bitcoin or Ethereum. The fund tracks the CoinDesk Litecoin Price Index and holds spot Litecoin with a regulated custodian. Paralel Distributors acts as the marketing agent.

In late May, Litecoin ETFs recorded a daily net inflow of roughly $260,000, marking the first positive flow in about a month, according to crypto.news data cited in the source. The inflow size illustrates that demand has been incremental rather than driven by large-scale institutional allocations.

For users of crypto-focused platforms, including betting and iGaming services that integrate digital asset payments, ETF flows are often interpreted as an indicator of broader market participation. In the case of Litecoin, ETF activity so far reflects limited incremental capital entering through regulated exchange-traded structures.

Litecoin Price Remains Near $45

At the time referenced in the source material, Litecoin traded at approximately $45.35, with a market capitalization of about $3.5 billion, according to CoinGecko data cited. The asset has declined around 89% from its all-time high above $400.

The ETF launched during an existing price drawdown. Over the eight months since listing, the presence of a regulated spot product has not materially altered Litecoin’s broader price trajectory. Short-term price movement has been limited, with the asset trading in a narrow range around $44 to $45 during mid-June 2026.

For market participants who monitor crypto prices as part of their funding or treasury strategies, this stability at lower levels contrasts with the volatility seen during earlier market cycles. The ETF structure has provided exchange access, but underlying asset demand remains a separate factor.

Regulatory Classification Clarifies Litecoin’s Status

On March 17, 2026, the SEC and CFTC issued joint guidance stating that 16 digital assets, including Litecoin, qualify as digital commodities rather than securities under federal law. This clarification placed Litecoin under CFTC jurisdiction.

The classification addressed a longstanding regulatory question that has affected many altcoins since 2017. By confirming commodity status, US regulators removed the unregistered securities concern that had weighed on parts of the market.

LTCC itself reached the market before the joint interpretation, following amendments to Canary’s S-1 registration statement throughout 2025. The subsequent regulatory clarification provided additional structural backing for the product category.

For international observers and platform users, the designation of Litecoin as a digital commodity reduces legal uncertainty in the US context. However, the regulatory milestone has not automatically translated into large ETF inflows.

Canary Expands Suite With Additional Altcoin ETFs

Following LTCC’s launch, Canary Capital introduced further spot ETFs tied to other digital assets. These include a spot Solana ETF (SOLC), a spot XRP ETF (XRPC), as well as products for Hedera (HBR) and Sui (SUIS). All trade on Nasdaq.

Beyond Canary’s lineup, additional altcoin ETF filings and launches have progressed. Spot XRP funds are live on multiple US venues, including Canary’s XRPC and a Bitwise product launched in October 2025. Bitwise has also filed an 8(a) form related to a spot Dogecoin ETF, initiating a 20-day automatic effectiveness window. VanEck and Grayscale have advanced amendments for spot BNB ETFs, while Avalanche, Cardano, Hedera, and Polkadot products remain in issuer pipelines.

The current regulatory posture has allowed non-Bitcoin, non-Ethereum spot ETFs to reach US markets through case-by-case effectiveness rather than broad denials. Within less than a year, roughly a dozen such products have listed.

Reference to Schwab Money-Market Usage Remains Unquantified

In early June, a Litecoin-focused social media account highlighted an SEC disclosure indicating that the Charles Schwab Family of Funds is using LTCC as a collateral investment within a Schwab money-market sleeve. According to the source material, Schwab has not independently republished or directly confirmed this information in a primary venue, and the size of any allocation has not been disclosed.

If accurate, the reference would indicate the ETF’s integration into a large financial institution’s operational framework. However, without a published allocation figure, the scale and significance of this usage remain undefined.

Our Assessment

Eight months after launch, Canary Capital’s LTCC has gathered approximately $9 million in inflows while Litecoin trades near $45, well below its historical peak. Regulatory clarification in March 2026 established Litecoin as a digital commodity under CFTC oversight, removing a key legal uncertainty. Despite this framework and the broader expansion of altcoin ETFs in the US, inflow data indicate that regulated access alone has not generated substantial new demand for spot Litecoin exposure through exchange-traded products.

BitGo Enters 2026 Fortune 500 With $16.2 Billion Revenue – Regulated Crypto Custody Reaches New Scale

Key Takeaways

BitGo Joins the 2026 Fortune 500 After Public Listing

BitGo Holdings, Inc. has been included in the 2026 Fortune 500 list following reported revenue of approximately $16.2 billion for the 2025 financial year. The company ranks No. 273 in this year’s edition. Its inclusion comes five months after its initial public offering on the New York Stock Exchange in January 2026, where it began trading under the ticker BTGO.

According to the published information, BitGo is the first company focused primarily on digital asset infrastructure to reach the Fortune 500. While crypto miners, exchanges, and companies holding digital assets in corporate treasuries have previously gone public, BitGo’s business model centers on custody, wallets, settlement, and related infrastructure services.

For users and institutional clients operating in crypto markets, this milestone reflects the scale that regulated digital asset service providers have reached within traditional corporate rankings.

From Bitcoin Wallet Provider to Institutional Infrastructure Company

BitGo was founded in 2011 by Mike Belshe, who currently serves as CEO, together with Bill Lee, Ben Davenport, and Will O’Brien. The company initially focused on secure Bitcoin wallets and institutional grade custody, emphasizing multi signature technology and enterprise security.

Over time, BitGo expanded its services beyond wallet technology. It now provides infrastructure for custody, trading, settlement, and operational support to exchanges, funds, ETF issuers, and other institutions active in digital assets.

The company states that it serves clients in more than 100 countries. Its global footprint includes a VARA license in Dubai, an office in London, a Latin America headquarters in Mexico City, and an Asia Pacific base in Singapore.

OCC Charter Establishes Federal Oversight Framework

A central element of BitGo’s regulatory position is its operation as BitGo Bank & Trust, National Association. In December 2025, the company received approval for a federal charter from the Office of the Comptroller of the Currency. This status designates it as a federally chartered national trust bank.

The OCC charter subjects the company to federal requirements, including capital standards, audits, risk management obligations, and fiduciary oversight. It also provides a unified federal supervisory framework, replacing certain state level licensing requirements with federal preemption.

According to statements cited in the source material, the charter is presented as offering regulatory clarity for institutional clients. In combination with its status as a publicly listed company, the structure positions BitGo within established U.S. banking supervision.

For market participants, especially those evaluating custody arrangements for large crypto holdings, federal oversight and public reporting obligations are relevant factors in risk assessment and compliance planning.

Custody, Prime Services, and Stablecoins Drive Revenue

BitGo identifies custody fees as its primary revenue source. In addition, the company has expanded its Prime services, which include over the counter trading, electronic trading, and derivatives. These services allow clients to access liquidity and execute strategies while assets remain in qualified custody.

The firm also offers staking services that enable clients to generate yield on assets such as Ethereum and Solana while maintaining cold storage custody.

Stablecoin infrastructure has become another revenue segment. Through its Stablecoin as a Service platform, BitGo provides minting, burning, and custody functions. Examples cited include support for World Liberty Financial’s USD1 stablecoin and infrastructure for SoFiUSD, described as a U.S. national bank issued stablecoin on a public blockchain with an initial mint of $150 million.

The company states that Bitcoin continues to generate significant volume on its platform, alongside Ethereum, Solana, and stablecoins.

Bitcoin Holdings and Institutional Client Base

BitGo reports that it holds more than 470,000 BTC in custody, placing it among the largest Bitcoin custodians globally based on the figures disclosed. In addition to client assets, BitGo Holdings holds approximately 2,449 BTC in its own corporate treasury, ranking it among the larger corporate Bitcoin holders according to the published data.

Its client base consists primarily of institutional and sophisticated market participants. Named examples include 21Shares, which uses BitGo for Bitcoin ETF custody, Fold for core infrastructure, World Liberty Financial for stablecoin custody and infrastructure, and SoFi for stablecoin related services.

The company has maintained a focus on institutional services rather than expanding into a broad retail platform.

Tokenization as an Area of Development

BitGo has identified tokenization as a strategic area of interest. In this context, tokenization refers to the representation of traditional assets, including public and private equities, on blockchain infrastructure.

The company indicates that it is examining tokenization of both public market instruments and private company equity. At the same time, it emphasizes that such activities must be conducted within a controlled and responsible framework.

For institutional users and platforms assessing future infrastructure providers, tokenization initiatives may affect how traditional securities and private assets are integrated into blockchain based systems.

Our Assessment

BitGo’s entry into the 2026 Fortune 500 with reported revenue of $16.2 billion highlights the scale achieved by regulated digital asset infrastructure providers. The company combines public market listing, federal trust bank status under the OCC, and large scale Bitcoin custody operations. Its revenue mix spans custody, trading services, staking, and stablecoin infrastructure, with a client base focused on institutional participants across multiple regions.

BitMine Expands Ether Holdings to Nearly $10 Billion – Company Approaches 5% of Circulating Supply Amid Market Downturn

Key Takeaways

BitMine Increases ETH Position During Prolonged Bear Market

BitMine Immersion Technologies has continued accumulating Ether despite ongoing market weakness. According to its latest disclosure, the company purchased an additional 76,881 ETH over the past week. The acquisition occurred during a period in which Ether briefly traded below $1,600.

With this latest purchase, BitMine’s total holdings have reached 5,620,754 ETH. The company reports an average acquisition price of $1,718 per token. Based on recent market prices near $1,843.69, the portfolio is valued at approximately $10.2 billion.

However, data referenced from DropsTab indicates that the company is currently sitting on nearly $9 billion in unrealized losses. The decline reflects the broader downturn in digital asset markets that has weighed on Ether’s price over an extended period.

Company Moves Closer to 5% of Ether Circulating Supply

BitMine has publicly stated its intention to accumulate 5% of Ether’s total circulating supply. Ethereum’s circulating supply currently stands at 120.68 million tokens.

Following the latest purchases, the company now controls approximately 4.66% of all ETH in circulation. This makes BitMine one of the largest known holders of Ether relative to total supply.

The scale of these holdings is relevant for market participants because concentrated ownership can influence liquidity dynamics and long term treasury strategies. For users active in crypto markets, including those using Ether for payments or transactions on betting and gaming platforms, large treasury positions may affect overall token availability in secondary markets.

Large Staking Operation Generates Yield Despite Price Weakness

In addition to accumulating ETH, BitMine has deployed a substantial portion of its holdings into staking. The company reports that more than 4.1 million ETH are currently staked. At recent market prices, this portion alone represents roughly $8.1 billion in value.

Staking allows Ether holders to participate in securing the Ethereum network in exchange for protocol rewards. For BitMine, this creates a recurring yield stream even as market prices remain below the company’s average acquisition cost.

The strategy highlights a treasury approach that relies not only on long term asset appreciation but also on network participation income. For crypto users evaluating Ethereum’s ecosystem, staking activity at this scale underscores the continued operational engagement of large holders during bearish market phases.

Spot Ether ETFs Record Consecutive Outflows

Ether’s price decline has coincided with sustained outflows from spot exchange traded funds in the United States. Last week marked four consecutive days of net outflows from spot Ether ETFs.

Selling pressure has persisted since early May, with daily net outflows exceeding $60 million on several occasions. BlackRock’s iShares Ethereum Trust ETF remains the largest US traded ETH ETF, reporting net assets of $4.75 billion. The fund holds approximately 2.36% of Ether’s circulating supply.

The ETF data illustrates that institutional investment flows have remained under pressure during the same period in which BitMine continued to increase its direct holdings. This contrast highlights differing capital allocation strategies between treasury companies and ETF investors.

Structural Challenges Within the Ethereum Ecosystem

Beyond price movements, Ethereum faces structural developments that affect its economic model. The network’s layer 2 scaling strategy aims to deliver faster and cheaper transactions by moving activity off the Ethereum mainnet.

As more transactions shift to layer 2 networks, the Ethereum mainnet captures less transaction fee revenue. This dynamic reduces the amount of ETH burned through fee mechanisms, potentially weakening the network’s deflationary effects.

At the same time, the Ethereum Foundation has experienced significant internal changes. At least nine senior leaders, researchers and core contributors have departed the organization this year. These exits represent one of the largest waves of talent attrition in the foundation’s history.

The departures coincide with an organizational overhaul and renewed debate within the community regarding governance, strategic direction and the foundation’s long term role in Ethereum’s development.

For users and businesses building on Ethereum, including platforms that integrate ETH payments, these structural and governance developments form part of the broader operational backdrop.

Our Assessment

BitMine has expanded its Ether holdings to 5,620,754 ETH, approaching its stated objective of owning 5% of the circulating supply. The company has accumulated these holdings during a sustained market downturn and currently reports substantial unrealized losses based on prevailing prices.

At the same time, more than 4.1 million ETH are staked, generating protocol rewards. The accumulation strategy contrasts with continued net outflows from US spot Ether ETFs and unfolds against structural changes within the Ethereum ecosystem, including shifts in fee dynamics and leadership departures at the Ethereum Foundation. Together, these factors define the current market environment in which large scale ETH treasury strategies are being executed.

Paradigm Leads $9 Million Funding Round in El Dorado – Stablecoin Payments App Expands Dollar Access in Latin America

Key Takeaways

Paradigm Leads New Investment in Latin American Stablecoin Platform

Paradigm has led a funding round of roughly $9 million in El Dorado, a stablecoin-powered payments application focused on Latin America. The transaction was reported by The Block and marks another investment by the venture capital firm in crypto-based payment infrastructure.

Neither Paradigm nor El Dorado have published detailed public statements on the financing. According to the report, additional information such as the company’s valuation, the complete list of investors and the specific allocation of the new capital has not been disclosed.

The investment places El Dorado among a growing group of companies building payment applications around dollar-pegged stablecoins in emerging markets.

El Dorado’s Product: Peer-to-Peer Marketplace and Stablecoin Payments

El Dorado operates a peer-to-peer marketplace and a broader payments application that allows users to buy, hold and send digital dollars. The platform relies primarily on Tether’s USDT stablecoin, while also supporting Mountain Protocol’s USDM.

The company describes its product as a SuperApp that integrates stablecoins with dozens of local payment channels. Users can move value between bank applications, cash networks and digital wallets within the app’s supported countries.

One of the core features is El Dorado Pay, which enables instant transfers between users. Settlement is routed through USDT on the Arbitrum network, a design choice intended to reduce transaction costs. By combining peer-to-peer exchange functionality with payment services, El Dorado has expanded beyond its original marketplace model into a more comprehensive payments stack.

According to the company, the app has crossed the milestone of one million users across Latin America.

Geographic Focus and Market Conditions in Latin America

El Dorado targets markets where access to US dollars can be limited by capital controls, inflation and restricted banking coverage. The app currently connects stablecoins to local payment rails in Argentina, Bolivia, Brazil, Colombia, Panama and Peru.

The company previously operated in Venezuela, which had been described as one of its strongest markets. It has since wound down operations there. No further details were provided regarding the reasons for that decision.

By linking USDT and other dollar tokens to domestic financial channels, El Dorado positions its service as a bridge between digital dollar assets and everyday payment infrastructure. This model allows users to convert between local currencies and stablecoins and transfer funds within the app’s ecosystem.

Previous Funding and Investor Background

This latest round follows a $3 million seed raise completed in 2024. That round was led by Multicoin Capital and included participation from Coinbase Ventures, UC Berkeley SkyDeck and Awesome People Ventures.

Paradigm’s involvement in the new financing continues its activity in crypto payments and decentralized finance. In December, the firm made its first investment in Brazil by committing $13.5 million to Crown, a startup issuing a Brazilian real stablecoin for institutional use.

More recently, Paradigm co-led a $175 million funding round in the lending protocol Morpho alongside a16z Crypto and Ribbit Capital. That transaction was described as one of the largest fundraises in decentralized finance to date.

The El Dorado investment therefore fits into a broader pattern of backing projects that focus on tokenized assets, stablecoins and payment infrastructure.

Competition in Latin America’s Stablecoin Payments Segment

Latin America has become an active market for stablecoin-based payment solutions. Established remittance and payment companies have also introduced blockchain-related initiatives in the region.

Western Union recently made its USDPT stablecoin available through Bybit’s fiat channels in Latin America. In addition, MoneyGram has signed on as an anchor remittance validator on the Tempo blockchain.

El Dorado’s model differs in that it operates as a crypto-native application rather than as an extension of a traditional remittance provider. The company aims to facilitate everyday dollar transactions within its supported countries through a dedicated app built around stablecoins.

The presence of both crypto-native startups and established financial companies underscores the level of activity in the region’s digital dollar market.

Our Assessment

Paradigm’s approximately $9 million investment in El Dorado provides additional capital to a stablecoin payments app that reports more than one million users in Latin America. The company connects USDT and other dollar tokens to local payment channels in six countries and has expanded from a peer-to-peer exchange into a broader payments platform. While financial details of the round remain limited, the deal aligns with Paradigm’s recent investments in stablecoins, tokenized assets and crypto-based financial infrastructure in emerging markets.

UK Gambling GGY Reaches £4.5 Billion in Q4 2025 – Online Betting and Casino Continue to Drive Market Revenue

Key Takeaways

Gross Gambling Yield Increases Year on Year

Britain’s gambling industry generated £4.5 billion in gross gambling yield during the fourth quarter of 2025, according to quarterly data released by the Gambling Commission. Gross gambling yield, which reflects revenue retained by operators after customer winnings are paid out, increased by 2.27% compared with £4.4 billion in the same quarter of 2024.

When lottery revenue is excluded, total GGY for the quarter amounted to £3.3 billion. The figures cover the period from October to December 2025 and provide a snapshot of how different segments of the market performed at the end of the year.

For users evaluating gambling platforms, GGY serves as a core indicator of operator activity and market size. A year-on-year increase suggests stable or growing consumer spending across regulated products.

Online Gambling Remains the Primary Revenue Driver

Remote casino, betting and bingo activities generated £2.12 billion in GGY during the quarter. Within that segment, remote casino gaming accounted for £1.49 billion, representing 70% of remote revenue.

Total turnover for remote casino, betting and bingo reached £39.18 billion in the quarter. This turnover produced the £2.12 billion in GGY reported by the regulator. Remote betting contributed £599.05 million, while remote bingo generated £38.66 million.

For the full year, aggregate remote casino, betting and bingo GGY reached £5.55 billion. The annual figure underlines the structural importance of online gambling within the UK market.

Participation data from the Gambling Commission’s Gambling Survey for Great Britain supports this trend. The survey, conducted between 22 September 2025 and 18 January 2026, found that 37% of respondents had engaged in online gambling during the previous four weeks. In-person gambling participation stood at 27%.

When lottery-only participants were excluded, online gambling participation was 15%, compared with 17% for in-person gambling. These figures show that lotteries account for a substantial share of overall gambling activity and influence participation statistics.

Land-Based Sector and Licensed Premises

Land-based gambling sectors, including arcades, betting shops, bingo halls and casinos, generated about £1.2 billion in GGY during the quarter. Non-remote betting contributed £613 million, representing 48.2% of total non-remote gambling revenue.

The UK gambling sector operated 8,148 licensed premises during the reporting period. This included 5,669 betting shops. Across licensed venues, 191,325 gaming machines were in operation.

These figures illustrate the continued presence of physical gambling infrastructure alongside the expansion of remote services. For users comparing online and retail options, the data confirms that both channels remain active, although revenue concentration is higher online.

Demographic Trends in Gambling Participation

According to the survey, 47% of respondents reported participating in some form of gambling in the previous four weeks. When lottery-only participants were excluded, participation dropped to 26%.

Gambling activity was highest among people aged 55 to 64, with 56% reporting participation. Rates were 54% among those aged 45 to 54 and 51% among those aged 35 to 44. Younger adults aged 18 to 24 reported lower overall participation at 31%, although they were more likely to engage in non-lottery gambling products.

Men reported higher participation rates than women. Overall gambling participation was 49% among men and 44% among women. Online gambling participation reached 41% for men and 34% for women. Betting showed one of the largest gender gaps, with 13% participation among men compared with 4% among women.

Lottery products remained the most popular form of gambling. Around 31% of respondents purchased National Lottery draw tickets in the previous four weeks. When charity lotteries were included, participation in lottery draws rose to 36%.

Lottery Contributions and Regulatory Oversight

National Lottery ticket sales totaled £2.02 billion during the quarter. These sales contributed £415.11 million to good causes. Large society lotteries added a further £126.2 million.

Alongside the financial data, the Gambling Commission announced plans to carry out an AI-powered marketing sweep. The initiative will focus on identifying gambling advertisements that may be unsuitable for under-18s.

The regulator stated that if ads are found to breach the rules, operators will be required to amend or remove them immediately. Failure to comply could result in sanctions, including referral to the platform hosting the advertisement or further regulatory action.

For operators and users alike, enforcement activity forms part of the broader compliance environment that shapes how gambling services are marketed and accessed in the UK.

Our Assessment

The fourth-quarter figures show moderate year-on-year growth in UK gambling GGY, with online casino and betting continuing to account for the largest share of revenue. Remote gambling generated more than half of total quarterly GGY and recorded substantial annual totals.

Participation data confirms that online gambling exceeds in-person activity in overall reach, while lottery products remain the most widely used form of gambling. At the same time, the land-based sector maintains thousands of licensed premises and significant machine deployment.

The planned AI-based marketing review indicates ongoing regulatory scrutiny, particularly in relation to advertising standards and underage protection. Together, the data outlines a market in which online channels dominate revenue generation under active regulatory oversight.

Bitcoin Trades Near $63,000 as Institutional Analysts Highlight Continued Accumulation Despite ETF Outflows

Key Takeaways

Bitcoin Stabilizes Around $63,000 After Recent Decline

Bitcoin traded around $63,000 on Monday, recovering from a two-month low reached on June 5. The recent weakness followed a combination of spot exchange-traded fund outflows, macro uncertainty, and capital rotation into artificial intelligence-related equities.

At current levels, Bitcoin remains approximately 50% below its all-time high of $126,279, recorded in October 2025. The decline has coincided with a pullback in retail participation and more cautious sentiment in mainstream coverage.

Despite these conditions, several institutional analysts argue that the long-term investment case for Bitcoin as a store of value remains unchanged.

ETF Flows and Corporate Selling Shape 2026 Market Activity

In a report published Monday, analysts at Wall Street brokerage Bernstein stated that Bitcoin’s long-term store-of-value thesis remains intact. The firm noted that combined net inflows into spot Bitcoin ETFs and corporate treasury companies reached $12 billion so far in 2026. That figure represents a sharp slowdown compared with $60 billion recorded in 2025.

Bernstein attributed much of the recent selling pressure to corporate treasury companies liquidating positions rather than to ETF investors. According to the report, spot Bitcoin ETFs recorded approximately $2.6 billion in net outflows year-to-date.

The distinction between ETF flows and corporate sales is relevant for market participants assessing the source of supply pressure. While ETF outflows can signal shifting investor demand, corporate treasury liquidations directly increase available supply in the market.

Institutional Ownership Indicators and Long-Term Holding Trends

Bernstein’s report highlighted that 61% of Bitcoin’s circulating supply has not moved in more than one year. This metric indicates that a majority of coins are held by investors who have not transacted during the recent volatility.

The brokerage maintained a price target of $150,000 for 2026, citing what it described as a structural shift in Bitcoin’s investor base. According to Bernstein, ownership has increasingly moved toward institutions such as wealth management platforms, pension funds, and sovereign wealth funds.

The firm previously characterized early 2026 as featuring the weakest bear case in Bitcoin’s history, arguing that adoption among banks and major investment firms differentiates the current downturn from earlier crypto market contractions.

Brownstone Research senior crypto analyst Ben Lilly drew a comparison to the 2022 bear market. He referenced BlackRock’s launch of a private Bitcoin trust in August 2022, which occurred during a market downturn and preceded the launch of BlackRock’s spot Bitcoin ETF, IBIT. That ETF later reached $80 billion in assets under management and did so five times faster than the previous record holder, Vanguard’s S&P 500 ETF. Lilly argued that institutional positioning during periods of retail disengagement has historical precedent.

Capital Rotation Into AI and Retail Focus on Equity Markets

Analysts tracking capital allocation trends reported a significant rotation into artificial intelligence-related stocks in recent months. Hundreds of billions of dollars have flowed into hyperscalers and large-cap technology companies, drawing attention and liquidity away from digital assets.

Retail focus has also shifted toward the upcoming SpaceX initial public offering, scheduled for June 12 on Nasdaq. The IPO is targeting a valuation between $1.75 trillion and $2 trillion. According to analysts cited in the report, this event has attracted retail capital that might otherwise have been directed toward cryptocurrencies.

In addition to capital rotation, sales by Strategy have contributed to selling pressure in the Bitcoin market.

Legislative Developments: CLARITY Act Advances in Congress

On the regulatory front, the CLARITY Act progressed in the US legislative process. The bill, which would divide regulatory authority over digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission, cleared the Senate Banking Committee in May with a 15-9 vote.

The House of Representatives previously passed the bill in July with a 294-134 vote. Final passage into law would address regulatory uncertainty that has affected institutional participation in the digital asset sector.

For market participants, legislative clarity is closely tied to access, compliance requirements, and product availability across trading platforms and investment vehicles.

Our Assessment

Bitcoin’s price stabilization near $63,000 comes amid slower net inflows, modest ETF outflows, and corporate treasury selling. At the same time, a majority of circulating supply remains inactive, and institutional analysts point to continued accumulation by large investors. Legislative progress on the CLARITY Act and ongoing capital rotation into AI-related equities form part of the broader environment shaping current market dynamics.