Crypto Transactions Linked to Human Trafficking Rose 85% in 2025 – Blockchain Transparency Offers Investigative Leverage

Key Takeaways

Transaction Volumes to Suspected Trafficking Networks Increased Sharply in 2025

Crypto flows to suspected human trafficking networks rose significantly in 2025, according to a new report by blockchain analytics firm Chainalysis. The company reports that transaction volumes increased by 85% compared with the previous year.

In absolute terms, the total volume reached hundreds of millions of dollars across the services identified in the report. Chainalysis notes that the majority of these operations are based in Southeast Asia. The firm describes the services as closely aligned with scam compounds, online casinos, and Chinese-language money-laundering networks, sectors that have seen notable growth in recent periods.

For users of crypto payment systems, including those active on online gambling platforms, the findings underline the scale at which digital assets are being used in both legitimate and illicit cross-border activities. The report focuses specifically on suspected human trafficking services and their crypto transaction patterns.

Wide Range of Illicit Services Identified

Chainalysis tracked several categories of crypto-facilitated human trafficking activity. These included Telegram-based services advertising international escorts, labor placement agents that allegedly kidnap individuals and force them to work in scam compounds, prostitution networks, and vendors distributing child sexual abuse material.

The report indicates that payment methods vary depending on the type of operation. International escort services and prostitution networks operate almost exclusively using stablecoins. Chainalysis data shows stablecoins dominating inflows to these suspected trafficking services, highlighting their role in facilitating cross-border payments with price stability.

The alignment between trafficking networks, scam compounds, and certain online casino environments is specifically mentioned in the report. While the analysis does not suggest that regulated operators are involved, it identifies structural links between illicit services, online gambling interfaces, and laundering networks operating in Chinese-language markets.

Stablecoins Play a Central Role in Payments

Stablecoins are described as the primary crypto asset used by several of the tracked services. According to Chainalysis, international escort services and prostitution networks rely almost exclusively on these tokens.

The preference for stablecoins reflects their practical characteristics in digital transactions. They allow users to transfer value across borders while minimizing exposure to price volatility. In the context of suspected trafficking networks, this feature appears to support consistent pricing and predictable settlement.

Chainalysis provides a breakdown of inflows by asset type, showing a clear concentration in stablecoins for certain categories. Other illicit service segments demonstrate more varied crypto usage, but stablecoins remain a dominant instrument in the sectors highlighted.

For crypto users and platform operators, the data illustrates how specific asset types can become associated with distinct transaction patterns. Monitoring such patterns forms part of the compliance strategies described in the report.

Blockchain Transparency as a Tool for Law Enforcement

Despite the increase in transaction volumes, Chainalysis emphasizes that blockchain technology provides a level of transparency not available in cash-based systems. The firm argues that this transparency can enable law enforcement agencies to detect and disrupt trafficking operations.

According to the report, investigators can identify transaction patterns, monitor compliance signals, and target strategic chokepoints such as exchanges and illicit online marketplaces. Unlike cash transactions, which leave limited traceable records, blockchain transfers are permanently recorded on public ledgers.

Chainalysis recommends that compliance teams and law enforcement monitor indicators such as large and regular payments to labor placement services, wallet clusters that interact with multiple categories of illicit services, and repeated stablecoin conversion patterns.

The report also references enforcement outcomes from the previous year. German authorities dismantled a child sexual exploitation platform, and Chainalysis states that blockchain analysis contributed to that effort. The example is cited to demonstrate how transaction tracing can support investigative work.

Implications for Exchanges and Online Platforms

The report highlights exchanges and online marketplaces as strategic points of intervention. Because many illicit actors ultimately convert or move funds through centralized services, these platforms represent potential enforcement and compliance leverage.

For crypto exchanges and platforms that accept digital asset payments, including certain online gambling services, transaction monitoring and wallet clustering analysis form part of risk management frameworks. Chainalysis indicates that identifying repeated behavioral patterns across wallets can help uncover broader networks rather than isolated transactions.

The link described between trafficking networks, scam compounds, and online casinos underscores the need for operational oversight in sectors that facilitate high-volume digital payments. While the report focuses on suspected illicit services, it also outlines technical mechanisms that can be applied across the broader crypto ecosystem.

Our Assessment

Chainalysis reports an 85% year-over-year increase in crypto transaction volumes to suspected human trafficking networks in 2025, with total flows reaching hundreds of millions of dollars. The activity is largely concentrated in Southeast Asia and is described as closely aligned with scam compounds, online casinos, and Chinese-language money-laundering networks. Stablecoins are the dominant payment method for several of the identified services. At the same time, the report states that blockchain transparency provides investigative opportunities for law enforcement, particularly through transaction pattern analysis and monitoring of exchanges and online marketplaces.

UAE Lottery Operator Secures WLA Level 2 Certification – Responsible Gaming Controls Formalized Under Federal Oversight

Key Takeaways

WLA Level 2 Certification Confirms Structured Responsible Gaming Framework

The Game LLC, operator of The UAE Lottery, has achieved Level 2 certification under the World Lottery Association Responsible Gaming Framework. The certification was supported by DigitalRG and follows the company’s earlier membership in the World Lottery Association.

According to the operator, the Level 2 status confirms that structured responsible gaming policies, governance processes, and accountability measures have been implemented across its operations. The assessment included an independent review of the company’s responsible gaming framework, covering self assessment, gap analysis, and development planning.

The review examined multiple operational areas. These included research initiatives, employee training, retailer programs, game design, digital channels, player education, treatment referral mechanisms, stakeholder engagement, and reporting structures. The certification therefore reflects not a single policy change but a broader integration of responsible gaming standards into different parts of the lottery’s operations.

A spokesperson for The UAE Lottery stated that, after attaining membership in the World Lottery Association, the company focused on aligning more closely with international best practices, leading to the Level 2 certification.

Only Licensed Lottery Operator in the UAE Holds Certification

The Game LLC is currently the only licensed lottery operator in the United Arab Emirates to hold the WLA Level 2 Responsible Gaming certification. The company was awarded the country’s first national lottery license in July 2024.

The UAE Lottery operates under the supervision of the General Commercial Gaming Regulatory Authority, which regulates the activity at the federal level. As an entity licensed by the GCGRA, The Game LLC manages what it describes as the UAE’s first and only federally licensed lottery.

The spokesperson emphasized that the certification reflects a commitment to clear player safeguards and continuous improvement as the lottery expands. The operator linked the certification directly to its regulatory position and to the ongoing development of its operations under federal oversight.

For users monitoring regulated gambling markets, the combination of a federal license and internationally recognized responsible gaming certification defines the current operational framework of the UAE Lottery.

Growing Player Base and Weekly Draws Increase Operational Scope

Since its launch, The UAE Lottery has attracted more than 800,000 players across the country. The operator reports that it has awarded over AED 165 million in prizes to date.

Weekly draws now form part of the lottery’s offering, and participation continues to expand. As the player base grows, the operator states that adherence to internationally recognized responsible gaming standards remains central to its operations.

The certification comes at a stage when operational scale is increasing. A larger player base and regular draw cycles typically require structured oversight mechanisms, particularly in areas such as digital engagement, player communication, and reporting. The independent review that preceded the Level 2 certification specifically examined digital channels and stakeholder engagement, areas that become more significant as participation expands.

Scope of the WLA Level 2 Assessment

The World Lottery Association Responsible Gaming Framework establishes different levels of certification based on the maturity and integration of responsible gaming practices. At Level 2, operators are required to demonstrate structured policies and documented processes rather than ad hoc measures.

In the case of The Game LLC, the independent review assessed several components. These included internal research and analysis, employee training programs, retailer compliance structures, and the integration of responsible gaming principles into game design. The review also evaluated player education initiatives, referral systems for treatment, and formal reporting mechanisms.

By addressing both operational and governance elements, the certification indicates that responsible gaming measures are embedded in management processes rather than limited to front end communication. The inclusion of stakeholder engagement in the assessment further points to structured interaction with relevant external parties.

Regulatory Framework and Licensing Background

The UAE Lottery operates under the regulation of the General Commercial Gaming Regulatory Authority. The Game LLC received the country’s first national lottery license in July 2024, establishing a federally licensed framework for lottery operations in the UAE.

The Level 2 certification was obtained after the company secured membership in the World Lottery Association. According to the operator, this sequence reflects a process of aligning its practices with international standards following the initial licensing phase.

For international observers and users comparing regulated gambling environments, the combination of federal licensing, WLA membership, and Level 2 certification outlines the current compliance structure under which the UAE Lottery functions.

Our Assessment

The Game LLC has formalized its responsible gaming framework through WLA Level 2 certification following an independent review of governance, training, digital operations, and reporting processes. As the only licensed lottery operator in the UAE and the holder of the country’s first national lottery license, the company now combines federal regulation by the GCGRA with internationally recognized responsible gaming standards. The certification comes as the lottery reports more than 800,000 players and over AED 165 million in awarded prizes, indicating that compliance structures are being reinforced alongside operational growth.

Coinbase Shares Fall as Analysts Cut Targets and CEO Sells Stock – Crypto Market Downturn Adds Pressure Ahead of Earnings

Key Takeaways

Coinbase Shares Under Pressure Amid Broader Crypto Sell-Off

Coinbase, the largest publicly traded crypto exchange in the United States, is facing renewed selling pressure as digital asset prices continue to decline. The company’s stock opened Thursday at around $153, nearly 10% below its intra-week highs. Since the beginning of 2026, shares have fallen roughly 34%.

The weakness in Coinbase’s share price comes as the broader crypto market has retraced significantly from late 2025 levels. Bitcoin has declined about 30% over the past month. After trading above $100,000 in October 2025, it has followed a downward trajectory since December and is now changing hands near $66,000 following a recent sell-off that briefly pushed prices toward $60,000.

Major altcoins have recorded even steeper losses. Lower asset prices have translated into reduced trading volumes across the sector, directly affecting one of Coinbase’s core revenue drivers: transaction fees generated from spot trading activity.

Analysts Revise Targets as Trading Activity Slows

Several Wall Street firms have adjusted their outlooks on Coinbase in response to the market environment.

Monness Crespi & Hardt downgraded Coinbase from buy to neutral. The firm set a price target of $120, implying more than 20% downside from recent trading levels. The downgrade was tied to downside risks associated with weakening crypto market conditions.

JPMorgan reduced its price target by 27%. In its note, the bank cited lower global spot trading volumes, declining overall crypto market capitalization, and weaker stablecoin activity, including softer circulation of USDC. Analysts at JPMorgan also highlighted the fragmented nature of global crypto spot trading. They noted that numerous smaller players could challenge Coinbase’s market share and warned that the company may not maintain the position it has held as the only major publicly traded crypto exchange for several years.

Other firms have also trimmed expectations while maintaining relatively constructive longer-term ratings. Cantor Fitzgerald lowered its target price from $277 to $221 but kept an overweight rating. Citi reduced its target from $505 to $400 while maintaining a buy stance.

According to the data cited, Coinbase currently holds a consensus rating of Moderate Buy. Nineteen analysts rate the stock as a buy, twelve assign a hold, and one issues a sell. The average price target stands near $332.

CEO Brian Armstrong Sells More Than 1.5 Million Shares

In addition to market-related headwinds, insider selling has drawn attention. Matthew Sigel, head of digital assets research at VanEck, reported that Coinbase CEO Brian Armstrong sold more than 1.5 million shares between April 2025 and January 2026. Based on Bloomberg pricing data, the transactions were valued at approximately $545 million.

The largest single sale occurred on June 25, when Armstrong disposed of 336,265 shares at roughly $355 per share.

Armstrong addressed the sales publicly on X. He described the transactions as diversification after more than a decade with most of his wealth tied to a single company. He stated that retaining nearly all of his net worth in one stock would be impractical and added that he remains “super long” on Coinbase. According to his statement, he has used part of the proceeds to start new companies.

Earnings Expectations in Focus as Market Weakness Persists

Attention is also turning to Coinbase’s upcoming earnings report. H.C. Wainwright analyst Mike Colonnese warned that the company could miss expectations on net revenue and adjusted EBITDA due to soft digital asset prices and unrealized crypto losses.

Colonnese also flagged the possibility of a large reported net loss linked to Coinbase’s crypto holdings and its stake in Circle. He noted that a significant headline loss could weigh on the stock’s performance following the earnings release, although he maintained a buy rating.

For users of crypto trading platforms and crypto-enabled betting services, the current market environment is relevant because exchange revenues are closely tied to trading activity. Lower volatility and reduced spot volumes can affect the financial performance of publicly listed exchanges such as Coinbase. At the same time, movements in Bitcoin and major altcoins directly influence the value of crypto balances used for trading, deposits, and withdrawals across platforms.

Our Assessment

Coinbase shares have declined sharply in early 2026 alongside a broader downturn in digital asset prices. Multiple analysts have reduced their price targets, citing weaker trading volumes, lower market capitalization, and softer stablecoin activity. Insider share sales by CEO Brian Armstrong have added to investor scrutiny ahead of the company’s earnings report. The combination of falling crypto prices, reduced spot activity, and revised earnings expectations defines the current environment surrounding Coinbase’s stock performance.

Franklin Templeton and SWIFT Outline 24-7 On-Chain Banking Vision – Tokenized Funds and Deposits Move Toward Early Infrastructure

Key Takeaways

Asset Managers Push Money Market Funds On-Chain

Franklin Templeton is advancing the tokenization of money market funds, positioning them as a core use case for blockchain-based financial infrastructure. Speaking at Consensus Hong Kong 2026, Chetan Karkhanis of Franklin Templeton said the objective is to take traditional financial instruments and make them cheaper and more efficient by issuing them natively on-chain.

The firm is focusing on money market funds, a global asset class valued at roughly $10 trillion and composed primarily of short-term Treasuries and repurchase agreements. By placing fund shares directly on blockchain networks, Franklin Templeton enables access through self-custody wallets or exchanges. This structure is designed to provide 24-7 liquidity, removing traditional cut-off times associated with fund subscriptions and redemptions.

In addition to continuous access, the firm aims to reduce operational expenses. Shareholder servicing fees in traditional structures can range from five to 15 basis points. Tokenized issuance, according to the company, can lower these costs by streamlining record-keeping and transaction processing.

For users of crypto platforms, tokenized money market funds represent a regulated yield-bearing instrument that can exist alongside stablecoins and other digital assets within blockchain ecosystems. The model allows investors to hold fund shares in digital wallets rather than through conventional brokerage accounts.

SWIFT Develops Infrastructure for Tokenized Deposits and CBDCs

On the banking side, SWIFT is working on integrating tokenized deposits and central bank digital currencies into existing global payment systems. Devendra Verma, representing SWIFT’s digital assets unit, described tokenized deposits as digital representations of fiat balances already held on bank balance sheets.

Rather than replacing existing liabilities, tokenized deposits mirror traditional fiat holdings in a new digital format. This approach allows banks to modernize payment processes without altering their balance sheet structure.

SWIFT connects more than 11,500 financial institutions worldwide. The organization reports that 75 percent of its payments already reach beneficiaries within 10 minutes. Its current initiative aims to eliminate cut-off times and holiday delays by creating continuous availability, moving toward a 24-7 operating model.

To achieve this, SWIFT is building a blockchain-based orchestration layer. This infrastructure is designed to interoperate with central bank digital currencies, tokenized bank deposits and other regulated digital assets. The goal is to ensure that new digital forms of value can move across the same global rails used for conventional cross-border payments.

For market participants, including crypto users and operators that rely on banking partners, such interoperability could influence how fiat on-ramps, settlement times and liquidity management evolve in the coming years.

Tokenized Assets Remain Small Compared With Global Markets

Despite growing institutional involvement, on-chain financial assets remain modest in scale compared with global capital markets. According to figures cited during the panel, roughly $300 billion in stablecoins and about $40 billion in tokenized treasuries and other real-world assets are currently issued on blockchain networks.

Karkhanis characterized these amounts as small relative to more than $200 trillion in global wealth. The comparison underscores that tokenized finance, while expanding, still represents a limited share of overall financial assets.

For comparison platform users tracking crypto liquidity and collateral trends, these figures provide context on the depth of tokenized markets. Stablecoins continue to dominate on-chain representations of fiat value, while tokenized government securities and similar instruments form a smaller but developing segment.

Regulatory and Security Barriers Slow Institutional Scaling

Executives from Franklin Templeton, SWIFT and Ledger identified regulatory clarity and secure key management as primary constraints on wider adoption.

Verma emphasized the need for consistent standards covering accounting treatment, compliance requirements and balance sheet recognition. Without harmonized regulatory frameworks, large-scale institutional deployment remains limited.

Security and governance were also highlighted as critical issues. Jean-Francois Rochet of Ledger pointed to the challenges of managing private keys and implementing institutional controls. For traditional financial institutions, secure custody of cryptographic keys requires both technical infrastructure and organizational adaptation.

These factors influence how quickly banks and asset managers can transition from pilot programs to production-level systems. While tokenization is moving beyond experimental stages, the speakers described the current phase as early-stage infrastructure development rather than full-scale transformation.

Hybrid Financial Models Expected to Coexist

Although blockchain technology is often associated with disintermediation, the panel suggested that traditional intermediaries will continue to play a role. Karkhanis stated that decentralized access and conventional financial intermediaries can coexist within the same system.

Rochet added that while some intermediaries may become less central, those that remain will need to justify their function within a redesigned financial architecture. This reflects an emerging model in which regulated institutions, blockchain networks and digital asset service providers operate in parallel.

For users of crypto betting and online platforms, such hybrid structures may shape how fiat and digital assets interact. Tokenized deposits and on-chain funds could eventually influence settlement cycles, treasury management and cross-border transfers used by licensed operators and their banking partners.

Our Assessment

Statements from Franklin Templeton and SWIFT indicate that tokenized money market funds and digital bank deposits are moving from pilot projects toward early infrastructure deployment. The initiatives focus on continuous availability, cost reduction and interoperability with existing payment systems. At the same time, regulatory consistency, accounting standards and institutional-grade key management remain necessary conditions for broader adoption. Current on-chain asset volumes, including stablecoins and tokenized treasuries, remain small compared with global financial markets, highlighting that tokenization is expanding but not yet systemic in scale.

Crypto Prices Show Mixed Performance on February 12 – Major Tokens Post Modest Daily Changes

Key Takeaways

Bitcoin and Ethereum Record Moderate Gains

Bitcoin is priced at $67,054.00, reflecting a daily increase of 0.43 percent. The move places the largest cryptocurrency by market price in positive territory, though with limited volatility compared to some alternative tokens listed.

Ethereum trades at $1,971.31, up 1.20 percent. The second-largest digital asset by price shows a stronger daily percentage gain than Bitcoin, but remains below the psychological $2,000 level.

Other major assets also post gains. XRP stands at $1.38, up 1.63 percent. BNB records one of the stronger advances among large-cap tokens, rising 2.71 percent to $615.12. Solana, by contrast, shows a decline of 0.59 percent to $80.49.

Dogecoin increases 2.42 percent to $0.092507, while Cardano rises 2.23 percent to $0.260849. Tron posts a 1.61 percent gain to $0.278868.

Stablecoins Remain Close to Peg

Major stablecoins continue to trade near the one-dollar mark. USDC is priced at $0.999888, while USDT-related instruments such as USDD trade at $0.999452. TUSD stands at $0.997967.

Other dollar-pegged tokens including PYUSD at $0.999897 and FDUSD at $0.998601 also remain close to parity. Slight deviations of a few basis points are visible across multiple stablecoins, but no significant breaks from the one-dollar reference point appear in the data provided.

Gold-backed digital assets show limited movement. PAXG trades at $5,064.78, up 0.11 percent, while XAUT stands at $5,028.00 with a marginal 0.01 percent decline.

Notable Double-Digit Movers Among Altcoins

Several smaller-cap tokens register pronounced percentage swings.

STRK increases 66.46 percent to $0.0478124. ZK posts a 97.34 percent gain to $0.0225706. AMP rises 23.05 percent to $0.00152922. BEAM advances 96.05 percent to $0.00242509.

Other significant gainers include ICNT, up 77.78 percent to $0.482267, and 0G, which climbs 56.35 percent to $0.810921. JASMY records a 14.75 percent increase to $0.00611457. ENS trades 5.06 percent higher at $5.75.

On the downside, MYX declines 32.22 percent to $3.31. RIVER falls 6.87 percent to $17.59, and DCR drops 5.09 percent to $21.64. ZRO shows an 8.63 percent decrease to $2.12.

These moves indicate elevated volatility among lower-priced and mid-cap tokens compared to large-cap cryptocurrencies.

Layer 1 and DeFi Tokens Show Varied Performance

Layer 1 assets present mixed results. Avalanche gains 2.92 percent to $8.81. Polkadot rises 3.53 percent to $1.29. Near Protocol increases 2.40 percent to $0.981623.

Cosmos posts a 5.08 percent advance to $1.98. Algorand is up 1.97 percent at $0.0911071. Hedera records a 4.64 percent gain to $0.0924624.

In decentralized finance, AAVE climbs 3.77 percent to $109.62. UNI increases 4.90 percent to $3.41. CRV rises 5.40 percent to $0.239455. COMP trades 0.74 percent higher at $15.96.

Liquid staking and related tokens also show upward movement. LDO gains 13.86 percent to $0.339231. ETHFI advances 7.99 percent to $0.460945.

Exchange and Utility Tokens Reflect Broad Uptrend

Exchange-related tokens display generally positive daily changes. OKB trades at $74.84, up 2.63 percent. BGB rises 1.82 percent to $2.35. GT posts a 1.84 percent gain to $7.01.

KCS records a marginal increase of 0.23 percent to $8.04. HTX trades 1.54 percent higher at $0.00000169.

Other utility-focused tokens also post gains. GRT rises 34.65 percent to $0.0268961. ARB increases 4.18 percent to $0.111505. OP climbs 13.55 percent to $0.183161.

These movements suggest broad participation across different token categories, though with varying magnitudes.

Our Assessment

The price data for February 12 shows moderate gains among major cryptocurrencies such as Bitcoin and Ethereum, while several large-cap altcoins post single-digit percentage increases. Stablecoins remain close to their dollar pegs. Smaller-cap tokens exhibit significantly higher volatility, with multiple assets recording double-digit gains and some notable declines. The overall snapshot reflects mixed but predominantly positive daily performance across a wide range of digital assets.

FanDuel Stops Accepting Credit Card Deposits in the US – Aligns Payment Policy With DraftKings

Key Takeaways

FanDuel Ends Credit Card Deposits for US Customers

FanDuel has stopped accepting credit cards as a deposit method for its US customers. The move means users can no longer fund their betting activity on the platform using credit cards.

According to the company, the decision follows an internal evaluation process conducted over the past few months. No further operational details were disclosed in the available information.

The change applies across the United States. As a result, customers who previously relied on credit cards to add funds to their accounts must now use alternative payment methods offered by the operator.

For users, the update directly affects how they manage account funding. Payment method availability is a key factor when choosing an online sportsbook or casino platform, particularly for customers who prioritize speed, convenience, or specific card-based billing structures.

DraftKings Previously Implemented a Nationwide Ban

FanDuel’s decision follows a similar step taken by DraftKings. Last year, DraftKings stopped accepting credit cards as a deposit method anywhere in the country.

With both operators implementing the same restriction, the two largest online gambling companies in the US no longer permit credit card funding for betting activity. This creates a consistent approach to this specific payment method among the market leaders.

The timeline shows that DraftKings introduced the change first, while FanDuel reached its decision after several months of internal review. The alignment between the two companies means that customers who use either platform face the same limitation regarding credit card deposits.

Impact on Users of Major US Gambling Platforms

The removal of credit card deposits has practical implications for account funding. Credit cards have traditionally been one of several available payment options on online gambling platforms, alongside other digital and bank-based methods.

For users who prefer credit cards due to reward programs, billing cycles, or established spending limits, the policy change requires an adjustment in how they transfer funds. Customers must now select from the remaining deposit methods provided by each operator.

From a comparison perspective, payment flexibility is often one of the criteria users evaluate when assessing sportsbooks and online casinos. The decision by both FanDuel and DraftKings narrows the range of funding tools available at the top end of the US market.

The update may also influence how users distribute their activity across platforms. When payment methods change, customers typically reassess convenience, processing times, and account management processes. However, the available information does not indicate any further changes to other deposit or withdrawal options.

Industry Context: Two Market Leaders Adopt the Same Policy

FanDuel and DraftKings are described as the two biggest online gambling operators in the United States. With both companies no longer accepting credit cards for deposits, a notable segment of the US online gambling market now operates under the same restriction.

Although the specific reasoning behind FanDuel’s decision has not been detailed, the company confirmed that it evaluated the matter over several months before implementing the change.

The development highlights how payment policies can evolve over time, even at established operators. For users and industry observers, such updates are relevant because payment infrastructure is a core component of online gambling operations. Changes to deposit methods can alter user behavior, operational processes, and competitive positioning within the market.

At this stage, the available information is limited to the confirmation of the policy shift and its nationwide scope.

Our Assessment

FanDuel’s decision to stop accepting credit card deposits in the United States brings its payment policy in line with DraftKings, which implemented a nationwide ban last year. As a result, the two largest US online gambling operators no longer allow customers to fund betting accounts with credit cards. The change directly affects deposit options for a significant share of the US online gambling market and requires users of both platforms to rely on alternative payment methods.

Robinhood Opens Testnet for Arbitrum-Based Ethereum Layer 2 – Crypto Head Argues Public Blockchains Meet Institutional Needs

Key Takeaways

Robinhood Opens Testnet for Arbitrum-Based Ethereum Layer 2

Robinhood is opening the testnet for its Arbitrum-based Ethereum Layer 2, marking a new step in the company’s blockchain development strategy. The move was discussed by Johann Kerbrat, the company’s Head of Crypto, in a podcast interview published by The Defiant on February 11, 2026.

According to the interview, the Layer 2 network is built on Arbitrum and designed to operate within the Ethereum ecosystem. By launching a testnet, Robinhood is making a pre-release version of the network available for testing before broader deployment. Testnets are commonly used in blockchain development to evaluate functionality, stability, and performance under real-world conditions without affecting live assets.

The announcement signals that Robinhood is pursuing its blockchain infrastructure strategy within the public Ethereum environment rather than developing a closed or proprietary system.

Strategic Choice: Building on Ethereum Instead of Private Chains

During the interview, Kerbrat explained the reasoning behind building on Ethereum and public blockchain infrastructure rather than opting for private chains. He stated that institutions can obtain the privacy and compliance guarantees they require on public chains such as Ethereum.

Kerbrat rejected the idea that private blockchains are necessary for institutional participation. In his view, building on private chains does not make sense because they function as little more than a “fancy database.” This characterization underscores Robinhood’s position that the core advantages of blockchain technology are best realized on public networks.

By emphasizing Ethereum as the foundation for its Layer 2 initiative, Robinhood aligns its development efforts with a widely used public blockchain rather than creating a segregated environment for selected participants.

Institutional Privacy and Compliance on Public Blockchains

A central theme of Kerbrat’s remarks was the compatibility between public blockchains and institutional requirements. He stated that privacy and compliance guarantees can be achieved within public blockchain systems.

This position addresses a longstanding debate in the digital asset sector over whether financial institutions require private or permissioned networks to meet regulatory and operational standards. According to Kerbrat, public chains such as Ethereum are capable of supporting these needs without sacrificing the transparency and openness that define them.

The argument implies that public blockchain infrastructure can serve both retail and institutional users simultaneously. Rather than separating use cases into different technological environments, Robinhood’s approach appears to rely on shared infrastructure.

Implications for Public Blockchain Adoption

Robinhood’s decision to open a testnet for an Arbitrum-based Ethereum Layer 2 reflects a commitment to public blockchain ecosystems. By choosing this route, the company positions its crypto infrastructure within an open network rather than behind closed systems.

Kerbrat’s comments suggest that the company sees long-term advantages in public blockchain architecture. His statement that private chains resemble a database indicates that Robinhood does not view them as offering the same structural benefits as public networks.

For market participants, the development highlights how major fintech firms are approaching blockchain integration. Instead of building isolated systems, Robinhood is testing infrastructure that connects directly to Ethereum through a Layer 2 framework.

Context of the Announcement

The discussion took place in an episode of The Defiant podcast hosted by Camila Russo. The interview focused on Robinhood’s strategic move to build on Ethereum and the broader reasoning behind the company’s blockchain choices.

While the company has not detailed specific timelines or technical parameters in the provided material, the opening of a testnet indicates an active development phase. Testnets typically allow developers and users to experiment with network functionality prior to any full production release.

The article accompanying the interview notes that The Defiant stores its articles on Filecoin, underscoring the broader context in which decentralized storage and blockchain infrastructure continue to intersect with media and fintech initiatives.

Our Assessment

Robinhood has opened the testnet for its Arbitrum-based Ethereum Layer 2 and publicly outlined its rationale for building on a public blockchain. According to Johann Kerbrat, institutions can achieve privacy and compliance guarantees on Ethereum, removing the need for private chains. He described private blockchains as a “fancy database,” reinforcing the company’s preference for public infrastructure. The development reflects a clear strategic choice to integrate within the Ethereum ecosystem rather than deploy a separate, closed network.