Stanley Druckenmiller Says Stablecoins Could Power Global Payments Within 10 to 15 Years – Highlights Shift From Traditional Banking Rails

Key Takeaways

Druckenmiller Sees Stablecoins Replacing Traditional Payment Rails

Billionaire investor Stanley Druckenmiller said blockchain based tokens, particularly stablecoins, could become the foundation of the global payments system within the next decade to 15 years. He made the remarks during an interview with Morgan Stanley recorded on Jan. 30 and released on March 14.

According to Druckenmiller, blockchain and stablecoins provide measurable productivity gains in payments. He described them as more efficient, faster and cheaper than fiat currencies operating on traditional banking infrastructure. Based on those characteristics, he said he assumes that entire payment systems could run on stablecoins within 10 to 15 years.

Druckenmiller founded Duquesne Capital Management in 1981 and closed the fund in late 2010. During that period, he achieved an average annual return of 30 percent and did not record a down year. His comments therefore carry weight in financial markets, particularly among institutional investors assessing digital asset infrastructure.

Stablecoins Framed as Efficiency Tool Rather Than Investment Asset

In the interview, Druckenmiller distinguished between blockchain based payment systems and cryptocurrencies used as investment vehicles. While he acknowledged the productivity benefits of tokens and stablecoins, he questioned the necessity of crypto as a store of value.

He described cryptocurrencies as a solution looking for a problem and said he was very sad that it ever happened. Although he recognized that crypto has become a brand that some people value, he stated that this brand recognition alone allows it to function as a store of value for certain holders.

Druckenmiller added that he does not currently own Bitcoin, but said he should. In October 2023, he compared Bitcoin to gold and noted that he prefers gold because it represents what he called a 5,000 year old brand.

For readers evaluating crypto payment options, this distinction is relevant. Druckenmiller’s comments separate the use of blockchain for transaction efficiency from the debate over long term value preservation through assets such as Bitcoin.

Previous Criticism of Central Banking and Trust in Fiat Systems

Druckenmiller has previously linked the potential rise of blockchain payment systems to declining trust in traditional financial authorities. In May 2021, he said that a blockchain based system could replace the payment rails that power the United States dollar.

At the time, he attributed the issue to central bankers and identified what he described as a lack of trust. This view connects his current remarks on stablecoins with a broader critique of existing monetary and banking structures.

By framing blockchain as an alternative to established payment rails, Druckenmiller positioned stablecoins not as speculative instruments, but as potential infrastructure components in a restructured financial system.

Payment Firms Move Toward Stablecoin Settlement After GENIUS Act

Druckenmiller’s comments come after several traditional payment companies announced plans to integrate stablecoin settlement systems. Western Union, MoneyGram and Zelle revealed such plans last year.

These announcements followed the passage of the stablecoin focused GENIUS Act in July. The law provided a regulatory framework that allows payment firms to offer digital asset services.

The introduction of a defined legal structure appears to have created conditions for established financial service providers to explore blockchain based settlement solutions. For users of crypto betting platforms and digital payment services, regulatory clarity can directly affect the availability and reliability of stablecoin transactions.

While Druckenmiller did not cite specific companies in his latest remarks, the alignment between investor commentary and corporate adoption signals a broader institutional engagement with stablecoin infrastructure.

Implications for Digital Payments and Crypto Users

If stablecoins were to become a core layer of global payment systems within the timeframe Druckenmiller outlined, this would represent a structural change in how transactions are processed and settled.

Stablecoins are designed to maintain a stable value relative to fiat currencies, which differentiates them from more volatile cryptocurrencies. Druckenmiller’s emphasis on speed, cost and efficiency highlights their potential role in cross border transfers, remittances and online payments.

For users of online gambling platforms, sportsbooks and other digital services that already accept stablecoins, a broader shift toward blockchain based settlement could affect transaction times, processing costs and integration with traditional financial networks. However, Druckenmiller’s comments focused on infrastructure rather than specific consumer applications.

Our Assessment

Stanley Druckenmiller stated that stablecoins and blockchain based tokens could form the backbone of global payment systems within 10 to 15 years, citing efficiency and cost advantages over traditional fiat infrastructure. He distinguished this view from his skepticism toward cryptocurrencies as stores of value. His remarks follow the passage of the GENIUS Act and subsequent announcements by major payment firms to develop stablecoin settlement systems, indicating growing institutional engagement with regulated digital payment infrastructure.

BlackRock Launches Staked Ether ETF While Ruling Out Exotic Crypto Fund Structures – Asset Manager Signals Measured Expansion Strategy

Key Takeaways

BlackRock Expands Crypto Lineup With Staked Ether ETF

BlackRock has introduced the iShares Staked Ethereum Trust (ETHB), adding a staking-based product to its existing spot Bitcoin and Ether exchange-traded funds. The new fund began trading on Thursday and is designed to provide investors with exposure to Ether price movements while also capturing staking rewards generated on the Ethereum network.

According to data from Farside Investors, ETHB recorded more than $15.5 million in trading volume and $43.5 million in inflows on its first day. The product marks BlackRock’s second Ether-focused ETF, following the iShares Ethereum Trust ETF (ETHA), which has accumulated nearly $12 billion in inflows since its launch in July 2024.

With ETHB, investors gain access to potential yield from Ethereum staking in addition to any appreciation in Ether’s market price. The structure reflects growing interest in income-generating features within digital asset investment products, while remaining tied to established cryptocurrencies.

Firm Rejects More Complex or “Exotic” ETF Structures

Despite expanding its crypto offerings, BlackRock has indicated that it will not pursue more complex ETF formats that are currently being tested by some competitors. Robert Mitchnick, the company’s head of digital assets, said on CNBC’s Crypto World segment that while more exotic structures are likely to enter the market, BlackRock intends to remain selective.

Mitchnick acknowledged that certain innovative structures may resonate with segments of investors. However, he stated that the firm would apply a “discerning approach” when considering additional expansions of its crypto ETF lineup.

He emphasized that the strongest investor demand continues to center on Bitcoin (BTC) and Ether (ETH). At the same time, BlackRock is observing what he described as “pockets of interest” in other digital assets. Any potential inclusion of additional tokens in iShares ETFs would depend on evolving conditions such as maturity, liquidity, scale, and use cases.

This measured stance positions BlackRock differently from asset managers experimenting with more complex or niche crypto fund designs. The company’s comments suggest a preference for products linked to the largest and most established cryptocurrencies.

Bitcoin Premium Income ETF in Development

In addition to ETHB, BlackRock is preparing a Bitcoin Premium Income ETF. The proposed product would use a covered call strategy by selling call options on Bitcoin futures contracts. The premiums collected from these options would be distributed to investors as income.

Such a strategy typically involves a trade-off. While investors receive regular income from option premiums, they may give up part of the potential upside if Bitcoin’s price rises significantly. The structure differs from BlackRock’s iShares Bitcoin Trust (IBIT), which mirrors Bitcoin’s spot price without an income component.

IBIT has attracted more than $63 billion in inflows since its launch in January 2024. According to Mitchnick, investors in the product have largely followed a long-term buy-and-hold approach. He noted that even during periods of broader selling pressure in the Bitcoin market, IBIT investors have tended to buy during price declines.

The contrast between IBIT and the planned Premium Income ETF illustrates BlackRock’s approach of offering differentiated products within defined risk and return profiles, rather than introducing structurally complex instruments.

Investor Focus Remains on Bitcoin and Ether

Mitchnick’s comments highlight that Bitcoin and Ether continue to dominate investor allocations within BlackRock’s crypto ETF suite. While interest in alternative digital assets exists, it remains secondary to the two largest cryptocurrencies by market recognition within the firm’s offerings.

The launch of ETHB builds on the momentum of ETHA and IBIT, both of which have gathered substantial inflows since 2024. The addition of staking rewards in ETHB introduces an income dimension to Ether exposure, similar in concept to the planned income-oriented Bitcoin product.

For market participants, including users of crypto-focused financial services and platforms, the development signals that major asset managers are expanding product functionality while maintaining focus on established digital assets. BlackRock’s stated reluctance to pursue exotic ETF formats suggests that its future crypto products will likely remain within conventional ETF frameworks.

Our Assessment

BlackRock has broadened its crypto ETF lineup with the launch of the iShares Staked Ethereum Trust while publicly ruling out more exotic or highly complex ETF structures. The firm continues to concentrate on Bitcoin and Ether, which have attracted significant inflows through IBIT and ETHA. At the same time, it is developing a Bitcoin Premium Income ETF that introduces an income strategy based on covered calls. The company’s approach, as described by its digital assets head, centers on selective expansion tied to asset maturity, liquidity, and investor demand.

Coinbase Denies Lobbying Against Bitcoin De Minimis Tax Exemption – Public Dispute Highlights Divide Over Crypto Tax Policy

Key Takeaways

Coinbase Executives Publicly Reject Lobbying Allegations

Coinbase has publicly denied allegations that it is working against a proposed tax exemption for small Bitcoin transactions. The claims surfaced on March 11, when Bitcoin podcaster Marty Bent wrote that the exchange was telling lawmakers a de minimis exemption was unnecessary.

According to Bent, Coinbase allegedly argued that “no one is using bitcoin as money” and that a de minimis exemption would be “a hand out that will be DOA.” He further claimed the company was pushing for stablecoins only treatment in order to advance its own business interests.

Coinbase Chief Policy Officer Faryar Shirzad responded directly on social media platform X, stating: “This is a total lie @MartyBent. We have never and will never lobby against Bitcoin. Ever.” The statement was issued as the allegation gained attention within the crypto community.

Block co founder Jack Dorsey publicly called on Coinbase CEO Brian Armstrong to clarify the company’s position. Dorsey wrote that he hoped the denial also applied to the de minimis issue and tagged Armstrong in his message.

Armstrong later responded and rejected the rumor, describing it as “totally false.” Bent subsequently stated that he had three different sources for his claims. No additional documentation was provided in the reported exchange.

What the De Minimis Tax Exemption Would Change

The proposed de minimis exemption would eliminate capital gains taxes and Internal Revenue Service reporting requirements on small Bitcoin transactions. Under current law, Bitcoin is treated as property. This means that every transaction, including everyday payments such as buying coffee or paying a freelancer, creates a taxable event.

As a result, users must calculate cost basis and report gains or losses for each transaction. Supporters of the exemption argue that this compliance burden discourages the use of Bitcoin as a medium of exchange.

Legislation backed by Senator Cynthia Lummis would introduce a $300 per transaction threshold with a $5,000 annual cap. Transactions below these limits would not trigger capital gains taxes or reporting obligations. According to supporters, this would align small Bitcoin payments more closely with minor foreign currency exchanges.

The proposal is currently being considered as part of broader digital asset tax reform discussions in Congress.

Reports of a Shift Toward Stablecoins Only Treatment

On the same day the allegations surfaced, Bitcoin Policy Institute Managing Director Conner Brown commented on developments in Washington. Brown stated that over the past three months there has been “a strong shift on the Hill to limiting the de minimis exemption to stablecoins only.”

Brown said the Bitcoin Policy Institute continues to meet with lawmakers and described such a limitation as a strategic mistake for the United States. His statement indicates that discussions around the scope of any exemption remain ongoing and that policymakers are considering alternative approaches.

If the exemption were restricted to stablecoins, Bitcoin transactions would continue to be treated as taxable property transfers for small payments, while certain stablecoin transactions could receive different treatment.

Lightning Network Data Cited in the Debate

The debate over whether Bitcoin is used as money has also drawn attention to transaction data from the Lightning Network. According to figures published on February 19, 2026, aggregated data from River Financial covering more than 50 percent of network capacity showed $1.17 billion in monthly volume across 5.22 million transactions in November 2025. The average transaction size was reported at $223.

An earlier report from June 18, 2025 stated that the network had reached roughly 1.5 million users and $1.5 billion in trading volume.

Block Inc., the company behind Cash App and Square, has been a vocal supporter of the de minimis exemption. In November 2025, Block launched its “Bitcoin is Everyday Money” campaign, explicitly calling for the exemption while introducing Lightning Network tools that allow Square merchants to accept Bitcoin payments with zero fees through 2027.

Block reported that its own Lightning node generated a 9.7 percent yield from routing payments. The company also stated that Cash App handled one in four outbound Lightning transactions following a sevenfold increase in usage.

Block Bitcoin product lead Miles Suter summarized the company’s position by stating that Bitcoin payments validate Bitcoin’s role as money.

Implications for Crypto Users and Platforms

For crypto users, particularly those considering Bitcoin for everyday transactions, the outcome of the de minimis proposal could directly affect reporting obligations and tax exposure. Under the current framework, even small payments require tracking and documentation.

For exchanges and payment providers, the regulatory approach may shape how Bitcoin and stablecoins are positioned within their services. The public exchange between Coinbase executives, industry advocates, and media commentators highlights differing priorities within the sector.

As Congress continues to evaluate digital asset tax reforms, the scope of any exemption remains unresolved.

Our Assessment

Coinbase leadership has formally denied lobbying against a Bitcoin de minimis tax exemption following public allegations. At the same time, policy discussions in Washington appear to include the possibility of limiting any exemption to stablecoins only. The proposed legislation would reduce tax and reporting requirements for small Bitcoin transactions, a change that supporters argue would affect everyday usage. The issue remains under consideration as part of broader digital asset tax reform efforts.

Binance Files Defamation Lawsuit Against The Wall Street Journal – Dispute Centers on Alleged Iran-Linked Crypto Flows

Key Takeaways

Binance Challenges February Report on Iran-Linked Transactions

Binance has initiated legal action against The Wall Street Journal, accusing the newspaper of defamation over a report published on February 23. According to Binance, the article falsely alleged that the company halted an internal compliance investigation into cryptocurrency transactions tied to Iranian networks.

The report claimed that internal investigators at Binance had identified more than $1 billion in crypto flows connected to entities associated with Iran-backed militant groups. It further stated that these transactions were traced through intermediaries, including a Hong Kong trading firm that allegedly moved hundreds of millions of dollars in stablecoins linked to Iranian networks.

The article also alleged that employees who raised concerns about the activity were later suspended or dismissed. Binance rejects these assertions and states that no compliance investigation was dismantled.

A company spokesperson said that Binance “categorically did not dismantle any compliance investigation” and accused the publication of continuing to report what it described as false information.

Binance Says Investigation Continued and Accounts Were Offboarded

In its response, Binance stated that the internal investigation was not stopped and that the company continued to pursue the matter. According to the company, the probe identified what it described as a “sophisticated, multi-jurisdictional pattern of financial activity” spanning parts of Asia and the Middle East.

Binance says it offboarded accounts connected to the identified activity and reported its findings to law enforcement authorities. The company also pointed to its broader compliance framework, stating that it has invested hundreds of millions of dollars in monitoring and investigative systems.

According to Binance, more than 1,500 staff members are employed in compliance, risk, and investigative roles. The company presents these figures as part of its effort to demonstrate the scale of its internal oversight and monitoring capabilities.

Dugan Bliss, global head of litigation at Binance, said the lawsuit was filed to address what the company describes as misinformation and the resulting reputational and business consequences. He stated that Binance views the legal action as necessary to defend itself against inaccurate reporting.

Department of Justice Reported to Be Examining Sanctions-Related Flows

In a separate development, The Wall Street Journal reported that the U.S. Department of Justice is examining whether Iranian actors used Binance to evade sanctions. According to that report, officials have contacted individuals with knowledge of transactions involving more than $1 billion in alleged flows linked to Iran-backed groups.

The newspaper stated that investigators are seeking interviews and gathering evidence. However, it remains unclear whether the inquiry is focused directly on Binance as a company or on customers who may have used the platform.

Binance responded by stating that it is not aware of any such investigation. The company said, “We are not aware of any investigations,” and reiterated that it continues to cooperate with regulators and law enforcement where appropriate.

Ongoing Dispute Highlights Compliance Scrutiny for Major Exchanges

The lawsuit marks the latest escalation in a dispute between Binance and The Wall Street Journal over reporting tied to sanctions-related crypto flows. At issue are allegations concerning how the exchange handled internal findings related to potentially sanctioned networks.

For users of crypto platforms, particularly those engaged in activities such as trading, payments, or crypto-based betting, compliance practices and regulatory scrutiny can affect platform operations. Allegations related to sanctions compliance may lead to legal proceedings, regulatory reviews, or changes in account policies.

In this case, Binance maintains that it acted on its internal findings by offboarding relevant accounts and reporting to law enforcement. At the same time, the reported involvement of the Department of Justice indicates that authorities are reviewing transactions linked to Iranian actors, though the scope of that review has not been clarified.

Our Assessment

Binance has formally challenged The Wall Street Journal over allegations that it dismantled an internal investigation into Iran-linked crypto flows exceeding $1 billion. The company denies the claims, states that it continued its compliance probe, offboarded accounts, and reported findings to law enforcement. Separately, the newspaper reports that the U.S. Department of Justice is examining whether Iranian actors used the exchange to evade sanctions, while Binance says it is not aware of any such investigation. The dispute centers on compliance practices, internal investigations, and potential sanctions-related activity involving the platform.

Flow Foundation Files Court Motion to Halt Korean Exchange Delistings – Legal Action Follows Security Incident and Sharp Token Decline

Key Takeaways

Flow Foundation Seeks Court Intervention Over Korean Delistings

Flow Foundation and its parent company Dapper Labs have filed a motion with the Seoul Central District Court to suspend the termination of trading support for the FLOW token on three major South Korean exchanges. The application targets decisions by Upbit, Bithumb, and Coinone, which announced on February 12 that they would end FLOW trading support effective March 16.

The court reviewed the application on March 9 and will determine the next procedural steps. The legal move comes after Korean exchanges halted trading following a security incident that affected the Flow blockchain in December.

For users in South Korea, the outcome of the court review will determine whether FLOW remains accessible on the affected platforms. At present, Korbit continues to support FLOW trading in the country.

December Security Incident Led to Trading Suspensions

Flow, a layer-1 blockchain, experienced a security incident in December when an attacker exploited a vulnerability in the network. The flaw allowed certain assets to be duplicated rather than minted through standard supply controls. As a result, tokens could be created outside the intended issuance process.

According to the Foundation, the exploit led to $3.9 million in duplicated tokens. The organization stated that no user funds were compromised and that the counterfeit tokens were permanently destroyed. The attacker did not access or drain existing user balances.

Despite these remediation measures, several exchanges suspended FLOW trading due to concerns about the impact of duplicate tokens on asset value and overall network trust. The Korean exchanges later moved toward full delisting, prompting the current legal challenge.

Global Exchanges Continue to List FLOW

While Korean platforms announced plans to terminate support, Flow Foundation stated that major global exchanges have independently reviewed the situation and restored full FLOW services.

The Foundation reported that FLOW remains available on Coinbase, Kraken, OKX, Gate.io, HTX, Binance, and Bybit. It also emphasized its commitment to maintaining open access to FLOW in every market.

For international users, this means that despite regional trading suspensions in South Korea, the token continues to be listed and tradable on multiple large exchanges. The differing approaches between Korean exchanges and global platforms highlight how individual venues respond independently to security incidents.

Token Price and Ecosystem Metrics Show Sharp Declines

Market data indicates that FLOW has faced significant price pressure since the December incident. The token has fallen 75% since late December and is currently trading at $0.043.

The longer term performance shows a more substantial decline. FLOW is down 99.9% from its 2021 all-time high of $42, according to CoinGecko data cited in the report.

On-chain activity metrics have also contracted. Total value locked on the Flow platform has decreased 82% to $21 million since its November 2025 peak, according to DeFiLlama. Data referenced in the report shows that TVL losses accelerated following the security incident.

The broader non-fungible token market has also contracted significantly. Total NFT market capitalization has declined 92% from a mid-2022 peak of around $17 billion to approximately $1.4 billion today, according to CoinGecko.

Flow’s Background and Ecosystem Development

Dapper Labs, known as the creator of the NFT project CryptoKitties, announced the development of Flow in 2019. The blockchain was designed as a new layer-1 network intended to address scalability challenges in Web3 games and digital collectibles.

According to the Foundation, the Flow ecosystem continues to develop, with brands including Disney, the NBA, the NFL, and Ticketmaster actively building on the blockchain.

The recent legal and market developments, however, have placed renewed attention on the network’s stability and token performance. Exchange support remains a critical factor for liquidity and accessibility, particularly in markets where local platforms play a dominant role in trading activity.

Our Assessment

Flow Foundation’s court filing represents a direct response to planned delistings by three major South Korean exchanges following a December security incident. Although the duplicated tokens were destroyed and no user funds were compromised, the event led to trading suspensions and a significant decline in FLOW’s market value and total value locked.

At the same time, the token remains listed on several major global exchanges, and Korbit continues to support trading in South Korea. The court’s decision will determine whether FLOW maintains access to the affected Korean platforms ahead of the announced March 16 termination date.

US Court Dismisses Terrorism Lawsuit Against Binance – Judge Finds No Plausible Link to Specific Attacks

Key Takeaways

US District Court Dismisses Claims Under Anti-Terrorism Laws

A judge at the US District Court for the Southern District of New York has dismissed a lawsuit that accused Binance, its former CEO Changpeng Zhao, and Binance.US operator BAM Trading Services of assisting terrorist organizations through cryptocurrency transactions.

The case was brought by hundreds of victims and relatives of victims of terrorist attacks. According to the court filing, the plaintiffs represented 535 individuals connected to 64 attacks that occurred between 2016 and 2024. The attacks were attributed to groups including Hezbollah, Hamas, ISIS, al-Qaeda and Palestinian Islamic Jihad.

The plaintiffs sought damages under the US Anti-Terrorism Act and the Justice Against Sponsors of Terrorism Act. These laws allow victims to pursue claims against entities alleged to have provided assistance to terrorist acts.

Judge Jeannette A. Vargas dismissed the case at the pleading stage. In her ruling, she found that the complaint did not sufficiently establish a connection between Binance’s operations and the specific attacks that caused the plaintiffs’ injuries. While the filing described alleged compliance failures and illicit activity on the platform, the court concluded that it did not plausibly link the exchange’s conduct to the terrorist incidents in question.

The judge stated that any amended complaint must be filed within 60 days.

Plaintiffs Alleged Exchange Facilitated Fund Transfers

The lawsuit argued that attackers or affiliated organizations benefited from cryptocurrency transactions conducted through Binance. According to the complaint, terrorist groups were able to move funds using the exchange’s infrastructure.

However, the court determined that the allegations, as presented, did not meet the legal threshold required to proceed. The decision effectively ends the case in its current form, unless the plaintiffs submit a revised complaint within the timeframe set by the court.

For users of centralized exchanges, the ruling highlights the legal standards required to hold platforms liable under US anti-terrorism legislation. Courts require a direct and plausible link between an exchange’s conduct and specific acts of terrorism, rather than general allegations of illicit activity on a platform.

Changpeng Zhao Responds to Court Decision

Following the dismissal, Changpeng Zhao commented publicly on the case. In a post on X, he stated that centralized crypto exchanges have “zero motive” to assist terrorist organizations.

Zhao argued that the economic structure of crypto trading makes such activity commercially illogical for exchanges. He wrote that terrorist actors are unlikely to generate meaningful trading revenue and would typically deposit funds only briefly before withdrawing them.

His comments addressed the broader question of incentives for centralized exchanges, which generate revenue primarily from trading activity. Zhao’s statement did not introduce new evidence but framed the issue in terms of business incentives.

Ongoing Scrutiny Over Sanctions Compliance

The court ruling comes as Binance faces additional scrutiny in the United States related to transactions involving sanctioned entities.

A group of 11 US senators recently raised allegations that the exchange facilitated transactions linked to Iranian entities. According to media reports referenced in the inquiry, Binance allegedly processed more than $1 billion in cryptocurrency transactions connected to Iranian entities Hexa Whale and Blessed Trust. The reports also claimed that employees who raised concerns internally were dismissed.

In a letter sent to Senators Richard Blumenthal and Ron Johnson, Binance rejected the allegations. The company stated that the February inquiry relied on reports that were “demonstrably false” and lacked credible evidence.

These developments illustrate the regulatory and political scrutiny that large crypto exchanges continue to face in the United States, particularly in relation to anti-terrorism financing rules and sanctions enforcement.

Implications for Crypto Platforms and Users

The dismissal of the lawsuit clarifies that, in this instance, the court did not find sufficient grounds to hold Binance liable under US anti-terrorism statutes based on the claims presented.

For crypto users, including those who use digital assets for trading or payments on online platforms, the case underscores the legal complexity surrounding centralized exchanges. Allegations of illicit finance can lead to significant legal proceedings, even when a case does not proceed beyond the initial stage.

For exchanges operating internationally, the ruling demonstrates the importance of compliance frameworks and the evidentiary standards required in US federal courts when claims relate to terrorist financing.

Our Assessment

The US District Court’s decision dismisses the terrorism-related claims against Binance, Changpeng Zhao and Binance.US at the pleading stage due to insufficient linkage between the platform’s operations and specific attacks. Plaintiffs have 60 days to amend their complaint. At the same time, Binance continues to face separate scrutiny from US lawmakers regarding alleged transactions involving sanctioned Iranian entities, which the company denies. Together, these developments reflect ongoing legal and regulatory examination of large centralized crypto exchanges in the United States.

Utexo Raises $7.5 Million Seed Round – Aiming to Enable Native USDT Settlement on Bitcoin

Key Takeaways

Seed Funding Backed by Tether and Institutional Investors

Utexo, a startup focused on Bitcoin-native stablecoin settlement infrastructure, has secured $7.5 million in a seed funding round. The round was co-led by Tether, Big Brain Holdings, and Portal Ventures. Additional participants included Franklin Templeton, Maven11 Capital, Fulgur Ventures, Alchemy VC, Ethereal Ventures, Auros Ventures, Arcanum Capital, Paper Ventures, Axia8, FlowTraders, Plan B, Gate Ventures, Sats Ventures, and strategic angel investors from companies such as Ledger, Hyperion, BTC Turk, Echo, Legion, and SOLV.

The funding is intended to support the development and rollout of infrastructure that enables USDT transactions to settle directly on Bitcoin. According to the company, the goal is to address what it describes as a longstanding gap in the cryptocurrency ecosystem: production-ready payment rails for stablecoins operating natively on Bitcoin.

Focus on Native USDT Settlement Over Bitcoin

Utexo’s core objective is to allow USDT, the stablecoin issued by Tether, to settle directly on Bitcoin rather than relying on alternative networks. The company positions its system as a way to route stablecoin transactions over Bitcoin-native rails while maintaining compatibility with existing custody, compliance, and user interface setups.

Paolo Ardoino, CEO of Tether, stated that Bitcoin has been central to the company’s long-term vision for USDT. He emphasized the importance of resilient and open settlement infrastructure, describing Utexo’s technology as a layer that makes Bitcoin-native USDT settlement viable at scale. According to Ardoino, this strengthens Bitcoin’s function as a settlement rail for dollar-denominated transactions.

For platforms that handle significant volumes of USDT, including exchanges, wallets, payment service providers, and high-frequency trading firms, the ability to route stablecoin flows over Bitcoin without altering operational workflows may reduce integration friction. Utexo states that partners integrate its API once and can then route USDT over Bitcoin while retaining control over cost structures.

Technical Architecture: API Abstraction and Atomic Settlement

Historically, technologies such as the Lightning Network and RGB protocols have offered technical capabilities for Bitcoin-based payments. However, their complexity has limited broader production adoption. Utexo aims to abstract these complexities through a single API layer.

According to co-founder Chris Hutchinson, the system is designed to allow USDT to move instantly and with predictable costs. The infrastructure supports atomic settlement, meaning transactions are either fully completed or not executed at all. The company states that settlement occurs in USDT and is anchored to Bitcoin’s security model, with completion times under one second.

Another co-founder, Viktor Ihnatiuk, noted that the system enables wallets to offer free USDT transactions while potentially increasing adoption of Bitcoin-native stablecoins. The infrastructure also supports privacy-preserving execution and predictable fees that remain independent of network congestion.

A distinguishing feature described by Utexo is transaction encryption. The company states that all on-chain transactions are encrypted, preventing disclosure of counterparties and wallet addresses. This differs from public transaction graphs on other networks, where transaction flows can be more easily traced.

Alignment With Tether’s Broader Bitcoin Strategy

The investment in Utexo reflects Tether’s continued focus on Bitcoin-based infrastructure. In February 2026, Tether open-sourced MiningOS, a modular operating system for managing and automating bitcoin mining operations. The system, unveiled at the 2026 Plan B Forum in San Salvador, provides unified control over hardware, energy, and site infrastructure using a peer-to-peer architecture.

By backing Utexo, Tether extends its involvement beyond mining software into settlement infrastructure. The stated objective is to enable reliable and predictable dollar-denominated payments anchored to Bitcoin’s security model. Rather than launching a speculative layer-2 solution, Utexo focuses on routing existing USDT flows over Bitcoin.

For market participants, particularly those handling large USDT volumes, infrastructure that allows stablecoin settlement on Bitcoin without operational restructuring may influence how payment rails are selected. Exchanges, trading firms, and payment providers often prioritize settlement speed, fee predictability, and system compatibility when choosing blockchain infrastructure.

Implications for Stablecoin Payment Infrastructure

Stablecoins such as USDT are widely used for trading, cross-platform transfers, and payment settlement. Infrastructure developments that alter how and where these tokens settle can affect transaction routing decisions for platforms and users.

Utexo’s model centers on predictable fees, atomic settlement, and encrypted transaction execution. If implemented as described, these features could offer an alternative routing option for USDT flows that emphasizes Bitcoin’s base-layer security model.

The company targets institutional and high-volume operators rather than retail users directly. However, infrastructure changes at the operator level can influence transaction costs, settlement times, and network exposure for end users, including those interacting with exchanges, wallets, and platforms that accept USDT.

Our Assessment

Utexo has secured $7.5 million in seed funding, co-led by Tether, to develop infrastructure enabling native USDT settlement on Bitcoin. The system introduces API-based integration, atomic settlement, encrypted transactions, and sub-second completion times. Tether’s participation aligns with its stated strategy to expand Bitcoin-based infrastructure for USDT. The development focuses on routing existing stablecoin flows over Bitcoin rather than introducing a new token or speculative network layer, targeting exchanges, wallets, and high-volume payment operators.

Zerohash Applies for US National Trust Bank Charter – Move Would Expand Custody and Settlement Services for Digital Assets

Key Takeaways

Zerohash Seeks Federal Trust Status to Expand Crypto Infrastructure Services

Chicago based digital asset infrastructure provider Zerohash has filed an application with the Office of the Comptroller of the Currency for a national trust bank charter. The move would allow the company to operate a federally regulated trust entity focused on digital assets and related financial services.

Zerohash provides backend crypto infrastructure to banks, brokerages and fintech platforms. According to its website, clients include prediction markets platform Kalshi and asset manager BlackRock. By obtaining a national trust charter, the firm aims to expand its role in digital asset custody and settlement.

The proposed national trust bank would provide custody for digital assets, fiat currency and other assets. It would also offer custodial staking, transfer agent services and stablecoin management. Stephen Gardner, the company’s chief legal officer, is listed as the proposed chief executive officer of the trust bank.

For users of crypto platforms, custody structure and regulatory status influence how assets are held and administered. A national trust charter would place Zerohash under federal oversight by the OCC, aligning it with other trust institutions that specialize in safeguarding assets rather than operating as full service commercial banks.

What a National Trust Bank Charter Allows and Restricts

A national trust bank differs from a traditional bank in several key aspects. Trust banks cannot accept deposits or issue loans. Instead, their primary function is to hold and administer assets on behalf of clients.

In the crypto sector, this structure has become relevant for firms focused on digital asset custody, settlement and related services such as staking and stablecoin administration. Federal trust status provides a uniform regulatory framework across US states, rather than requiring multiple state level licenses.

Zerohash joins a group of crypto and fintech firms that have recently pursued similar federal charters. In December, the OCC granted conditional approval for trust charters requested by Circle Internet Group Inc., Ripple, BitGo Inc., Fidelity Digital Assets and Paxos. These approvals signal that federal regulators are processing applications from digital asset companies seeking trust status, although final approvals remain subject to regulatory conditions.

For international users evaluating crypto service providers, federal trust status can affect how assets are legally segregated and supervised within the United States. While a trust charter does not permit lending or deposit taking, it formalizes custody and administrative activities under federal banking law.

Mastercard Explored Acquisition as Zerohash Remains Independent

Earlier this year, Mastercard considered acquiring Zerohash in a deal reportedly valued at up to 2 billion US dollars. The company chose to remain independent and rejected an outright purchase.

According to reports, the two companies are now discussing a strategic investment. Such an arrangement would allow Mastercard exposure to Zerohash’s technology and client base while preserving Zerohash’s autonomy.

This context highlights Zerohash’s position within the broader digital asset infrastructure market. Rather than operating a consumer facing exchange or wallet, the company focuses on providing regulated backend services to financial institutions and fintech platforms that integrate crypto functionality for their users.

Kraken Secures Federal Reserve Master Account for Direct Dollar Settlement

In a separate development, crypto exchange Kraken announced that it has secured a Federal Reserve master account. The approval was granted to Kraken Financial by the Federal Reserve Bank of Kansas City.

A master account allows Kraken to access the US central bank’s core payment infrastructure directly. Through Fedwire, the company can settle US dollar transactions without relying on intermediary banks.

However, Kraken will not receive all the benefits associated with traditional banks. The company will not earn interest on reserves held at the Federal Reserve and will not have access to the Fed’s lending facilities. The arrangement reflects discussions around so called skinny master accounts, which provide limited access to payment systems without full banking privileges.

Access to the Federal Reserve payment system has historically been restricted, and crypto firms have sought similar approvals. Other companies, including Ripple and Custodia Bank, have pursued comparable access, although approvals have been selective.

For users, direct access to Fedwire can affect how efficiently US dollar transactions are processed within a platform’s banking structure. It also reduces reliance on third party correspondent banks for settlement.

Regulatory Positioning Becomes Central for Crypto Infrastructure Providers

Both Zerohash’s trust bank application and Kraken’s master account approval reflect a broader focus on regulatory positioning among crypto infrastructure providers in the United States.

Zerohash is seeking a federal trust structure to formalize custody, staking and stablecoin services under OCC supervision. Kraken, through its banking arm, has secured direct access to the US payment system while operating under limited banking privileges.

For international users of crypto trading, betting or payment platforms, these developments matter because infrastructure providers often sit behind consumer facing services. Custody arrangements, settlement mechanisms and access to fiat payment rails influence how platforms manage client funds and process transactions.

Our Assessment

Zerohash’s application for a national trust bank charter would, if approved, place its digital asset custody and settlement services under federal oversight by the OCC. Trust status would allow the company to hold and administer assets but not to accept deposits or issue loans.

Kraken’s approval for a Federal Reserve master account grants direct access to US dollar settlement infrastructure, while limiting traditional banking benefits such as interest on reserves or central bank lending.

Together, these developments show that major crypto infrastructure providers are pursuing formal regulatory frameworks and direct payment access within the United States, shaping how digital assets and fiat transactions are managed at the institutional level.