Before discovering Bitcoin (BTC), Ledn co-founder Mauricio di Bartolomeo found success shorting the Venezuelan Bolivar as it rapidly lost value against the stronger US dollar. Now, with the US dollar depreciating against Bitcoin, borrowing against Bitcoin instead of selling it has become a more viable strategy.

“Prior to Bitcoin, my most successful investment was shorting the Bolivar with dollars,” di Bartolomeo told Cointelegraph in an exclusive interview at the Consensus conference in Toronto, Canada. 

“I was borrowing Bolivars and buying dollars with them, holding the hard dollars and having a borrow [position] on the weaker currency,” he said.

The arrival of Bitcoin-backed loans means investors can now effectively implement the same strategy by using a harder currency as collateral. 

Ledn co-founder Mauricio di Bartolomeo, right, and Cointelegraph’s Sam Bourgi at Consensus. Source: Cointelegraph

This was part of the motivation behind launching Ledn, a Cayman Islands-based company that gives Bitcoin holders the ability to access dollar liquidity without having to sell their BTC. 

By borrowing against Bitcoin, “you’re basically doing the same thing, but you are in effect holding the hard money, which is Bitcoin, and taking a borrow [position] on dollars, which is a weaker currency,” said di Bartolomeo, adding:

“This creates a bit of a virtuous cycle that we see happen time and again with real estate, with borrowing against your stock, borrowing against your gold, and so Bitcoin is no different.”

Related: Bitcoin miners should pay costs in depreciating currency — Ledn exec

Crypto lending market on the rise

Ledn operates in a much broader crypto lending industry that has grown over the past five years due to the rapid appreciation of Bitcoin, the arrival of institutional investors and the growing utility of stablecoins.

By the fourth quarter of 2024, the crypto lending market was valued at $30.2 billion, a more than threefold increase compared to two years earlier, according to Galaxy Research. However, the size of the overall industry remains below the 2021 peak. 

The researchers attributed the recent rise to decentralized finance applications, which allow users to borrow against assets onchain. This trend was further corroborated by a recent Cointelegraph report, which documented the growing monetary value secured by DeFi lending protocols. 

The crypto lending market has rebounded sharply from its 2022 lows but remains well below the peak from 2021. Source: Galaxy Research

Ledn was ranked among the top three centralized finance (CeFi) lenders, with a loan book valued at $9.9 billion at the end of 2024. Together, the top three CeFi lenders — Ledn, Tether and Galaxy — account for 89% of the total market, the Galaxy report showed.

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

Ripple, the creator of cryptocurrency XRP (XRP), launched cross-border blockchain payments in the United Arab Emirates (UAE), a development that could spur the adoption of cryptocurrency in a country receptive to digital assets.

Zand Bank, the UAE’s first all-digital bank, and Mamo, a fintech company that offers a digital payment platform for businesses, will be the principal users of the blockchain payments system, according to a May 19 Ripple announcement.

Zand Bank and Mamo will use “Ripple Payments” to facilitate cross-border blockchain payments.

Ripple Payments is a platform that combines stablecoins, cryptocurrency, and fiat to enable payments and quick settlement times, a feature of Web3 that cross-border traditional finance payment systems often lack. Ripple was licensed to offer crypto payments by the Dubai Financial Services Authority (DFSA) in March.

Reece Merrick, Ripple’s managing director for the Middle East and Africa, said acquiring this license “enables Ripple to better serve the demand for solutions to the inefficiencies of traditional cross-border payments, such as high fees, long settlement times, and lack of transparency, in one of the world’s largest cross-border payments hubs.”

Related: Ripple, Chipper Cash partner for faster and cheaper African remittances

UAE ranked 56 out of 151 countries for crypto adoption

Chainalysis, a blockchain data platform, ranked the United Arab Emirates 56th out of 151 countries for crypto adoption, according to a 2024 report. The country scored high in decentralized finance, stablecoin use, and altcoins.

The UAE has made some changes that may further increase its ranking. Various emirates, including Abu Dhabi and Dubai, have attempted to establish themselves as crypto hubs.

In December 2024, Tether’s USDt (USDT) became an accepted virtual asset in Abu Dhabi. In 2025, Circle’s USDC (USDC) and EURC became the first stablecoins recognized under the emirate’s crypto token regime.

The country is also continuing plans to establish a digital dirham, which would be a central bank digital currency.

On May 19, Dubai’s Virtual Assets Regulatory Authority (VARA) announced more oversight for crypto asset activities, specifically margin trading and token distribution. There will be a 30-day transition period, and affected companies will be expected to comply with the new rules by June 19. 

Magazine: Fake Rabby Wallet scam linked to Dubai crypto CEO and many more victims

Ripple, the creator of cryptocurrency XRP (XRP), launched cross-border blockchain payments in the United Arab Emirates (UAE), a development that could spur the adoption of cryptocurrency in a country receptive to digital assets.

Zand Bank, the UAE’s first all-digital bank, and Mamo, a fintech company that offers a digital payment platform for businesses, will be the principal users of the blockchain payments system, according to a May 19 Ripple announcement.

Zand Bank and Mamo will use “Ripple Payments” to facilitate cross-border blockchain payments.

Ripple Payments is a platform that combines stablecoins, cryptocurrency, and fiat to enable payments and quick settlement times, a feature of Web3 that cross-border traditional finance payment systems often lack. Ripple was licensed to offer crypto payments by the Dubai Financial Services Authority (DFSA) in March.

Reece Merrick, Ripple’s managing director for the Middle East and Africa, said acquiring this license “enables Ripple to better serve the demand for solutions to the inefficiencies of traditional cross-border payments, such as high fees, long settlement times, and lack of transparency, in one of the world’s largest cross-border payments hubs.”

Related: Ripple, Chipper Cash partner for faster and cheaper African remittances

UAE ranked 56 out of 151 countries for crypto adoption

Chainalysis, a blockchain data platform, ranked the United Arab Emirates 56th out of 151 countries for crypto adoption, according to a 2024 report. The country scored high in decentralized finance, stablecoin use, and altcoins.

The UAE has made some changes that may further increase its ranking. Various emirates, including Abu Dhabi and Dubai, have attempted to establish themselves as crypto hubs.

In December 2024, Tether’s USDt (USDT) became an accepted virtual asset in Abu Dhabi. In 2025, Circle’s USDC (USDC) and EURC became the first stablecoins recognized under the emirate’s crypto token regime.

The country is also continuing plans to establish a digital dirham, which would be a central bank digital currency.

On May 19, Dubai’s Virtual Assets Regulatory Authority (VARA) announced more oversight for crypto asset activities, specifically margin trading and token distribution. There will be a 30-day transition period, and affected companies will be expected to comply with the new rules by June 19. 

Magazine: Fake Rabby Wallet scam linked to Dubai crypto CEO and many more victims

Key takeaways:

Bitcoin recovered from its sharp sell-off from $107,000, suggesting it functions as a hedge against uncertainty for investors reacting to Moody’s recent downgrade of US debt.

Moody’s downgraded the US credit rating to Aa1, citing a $36 trillion debt and rising deficits, causing market turbulence and a spike in US Treasury yields.

Despite short-term pressure from macroeconomic shifts, Bitcoin’s long-term outlook remains bullish due to cautious shorting and a weakening US dollar.

Bitcoin (BTC) price faced a sharp 4% correction during the Asian trading session on May 19, tumbling from an “important level” as noted by Glassnode. The data analytics platform indicated that Bitcoin’s surge stalled just below $106,600, a critical level where 31,000 BTC are held. This supply cluster, formed on Dec. 16, 2024, reflects firm holder conviction, as investors have neither sold nor averaged down despite price fluctuations.

Bitcoin price cost basis chart. Source: Glassnode

The BTC price drop occurred after macroeconomic headwinds intensified, with a historic downgrade of the US credit rating by Moody’s and a rise in US Treasury yields, raising speculation around risk assets such as Bitcoin’s near-term trajectory.

Moody’s US credit downgrade spooks markets

After the US markets closed on May 16, Moody’s Investors Service downgraded the US credit rating to Aa1 from Aaa, marking the third time since 2011 that a ratings service has done so. Moody’s cited concerns over the US’s ballooning $36 trillion debt pile, with federal deficits projected to reach 9% of GDP by 2035, up from 6.4% in 2024.

Interest payments on US debt are expected to consume 30% of federal revenue by 2035, a significant rise from 18%. Following similar actions by S&P in 2011 and Fitch in 2023, this downgrade underscores the unsustainable fiscal path of the US, rattling investor confidence and contributing to market turbulence.

US 30Y treasury yields reached its highest level since Oct 2023. Source: Cointelegraph/TradingView

The downgrade also coincided with a surge in US Treasury yields, further impacting markets. The 10-year Treasury yield opened at 5.53% post-downgrade on May 19, while the 30-year yield followed a similar upward trend, currently at 4.98%, reflecting investor concerns over higher borrowing costs for the US government. 

The Kobeissi newsletter highlighted that historically, past downgrades led to mixed yield reactions — yields fell 35% after the 2011 S&P downgrade but rose 23% after Fitch’s 2023 downgrade. This time, the yield spike mirrors the 2023 pattern, signaling fears of inflation and fiscal strain, which likely contributed to Bitcoin’s price correction as investors sought safer assets.

Related: Bitcoin bulls should ‘be careful with longs’ as BTC price risks $100K breakdown

Will short-term pain shift to long-term gain for Bitcoin?

Bitcoin’s price dump on May 19 reflects its sensitivity to macroeconomic shifts. Bitcoin could face continued pressure in the short term as investors pivot to safer assets amid rising uncertainty and borrowing costs.

However, Bitcoin researcher Axel Adler Jr. on X highlighted a shift in market sentiment, noting that traders betting on price declines have been “significantly more cautious” in building short positions during this bull cycle compared to 2021. This suggests a generally bullish long-term outlook, as bears grow risk-averse.

Bitcoin Advanced Short/Long signals. Source: X.com

Historically, Bitcoin has served as a safe haven during economic turmoil, such as the COVID-19 crisis, and could benefit long-term from eroding trust in fiat systems, especially with the US fiscal outlook deteriorating.

The US Dollar Index (DXY) is signaling a potential decline below $100, reflecting a weakening dollar that has triggered a classic “risk-off” response. This shift has reignited interest in gold, which saw a modest 0.4% increase, though broader market reactions remain subdued. Typically, a weaker dollar bolsters risk assets like Bitcoin, as investors seek alternative stores of value. Adler Jr said,

“Overall, despite the prevailing “risk-off” sentiment (typically a headwind for high-volatility assets), Bitcoin may find itself in a relatively stronger position in the current environment due to its “digital gold” narrative and the supportive effect of a weaker dollar.”

Related: $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Key takeaways:

Bitcoin recovered from its sharp sell-off from $107,000, suggesting it functions as a hedge against uncertainty for investors reacting to Moody’s recent downgrade of US debt.

Moody’s downgraded the US credit rating to Aa1, citing a $36 trillion debt and rising deficits, causing market turbulence and a spike in US Treasury yields.

Despite short-term pressure from macroeconomic shifts, Bitcoin’s long-term outlook remains bullish due to cautious shorting and a weakening US dollar.

Bitcoin (BTC) price faced a sharp 4% correction during the Asian trading session on May 19, tumbling from an “important level” as noted by Glassnode. The data analytics platform indicated that Bitcoin’s surge stalled just below $106,600, a critical level where 31,000 BTC are held. This supply cluster, formed on Dec. 16, 2024, reflects firm holder conviction, as investors have neither sold nor averaged down despite price fluctuations.

Bitcoin price cost basis chart. Source: Glassnode

The BTC price drop occurred after macroeconomic headwinds intensified, with a historic downgrade of the US credit rating by Moody’s and a rise in US Treasury yields, raising speculation around risk assets such as Bitcoin’s near-term trajectory.

Moody’s US credit downgrade spooks markets

After the US markets closed on May 16, Moody’s Investors Service downgraded the US credit rating from Aaa to Aa1, marking the first downgrade in modern history. Moody’s cited concerns over the US’s ballooning $36 trillion debt pile, with federal deficits projected to reach 9% of GDP by 2035, up from 6.4% in 2024.

Interest payments on US debt are expected to consume 30% of federal revenue by 2035, a significant rise from 18%. Following similar actions by S&P in 2011 and Fitch in 2023, this downgrade underscores the unsustainable fiscal path of the US, rattling investor confidence and contributing to market turbulence.

US 30Y treasury yields reached its highest level since Oct 2023. Source: Cointelegraph/TradingView

The downgrade also coincided with a surge in US Treasury yields, further impacting markets. The 10-year Treasury yield opened at 5.53% post-downgrade on May 19, while the 30-year yield followed a similar upward trend, currently at 4.98%, reflecting investor concerns over higher borrowing costs for the US government. 

The Kobeissi newsletter highlighted that historically, past downgrades led to mixed yield reactions—yields fell 35% after the 2011 S&P downgrade but rose 23% after Fitch’s 2023 downgrade. This time, the yield spike mirrors the 2023 pattern, signaling fears of inflation and fiscal strain, which likely contributed to Bitcoin’s price correction as investors sought safer assets.

Related: Bitcoin bulls should ‘be careful with longs’ as BTC price risks $100K breakdown

Will short-term pain shift to long-term gain for Bitcoin?

Bitcoin’s price dump on May 19 reflects its sensitivity to macroeconomic shifts. Bitcoin could face continued pressure in the short term as investors pivot to safer assets amid rising uncertainty and borrowing costs.

However, Bitcoin researcher Axel Adler Jr. on X highlighted a shift in market sentiment, noting that traders betting on price declines have been “significantly more cautious” in building short positions during this bull cycle compared to 2021. This suggests a generally bullish long-term outlook, as bears grow risk-averse.

Bitcoin Advanced Short/Long signals. Source: X.com

Historically, Bitcoin has served as a safe haven during economic turmoil, such as the COVID-19 crisis, and could benefit long-term from eroding trust in fiat systems, especially with the US fiscal outlook deteriorating.

The US Dollar Index (DXY) is signaling a potential decline below $100, reflecting a weakening dollar that has triggered a classic “risk-off” response. This shift has reignited interest in gold, which saw a modest 0.4% increase, though broader market reactions remain subdued. Typically, a weaker dollar bolsters risk assets like Bitcoin, as investors seek alternative stores of value. Adler Jr said,

“Overall, despite the prevailing “risk-off” sentiment (typically a headwind for high-volatility assets), Bitcoin may find itself in a relatively stronger position in the current environment due to its “digital gold” narrative and the supportive effect of a weaker dollar.”

Related: $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kazakhstan, the Maldives and Pakistan have recently outlined ambitions to position themselves as crypto hubs and build out their digital economies.

Historically, these countries haven’t been top of mind for global crypto firms — though Kazakhstan did have a brief moment in the spotlight as a go-to destination for Bitcoin (BTC) miners after China’s mining ban.

Meanwhile, established financial centers are now in a race to become the world’s leading crypto hub by finding the right balance of regulation, talent, capital and infrastructure.

Here’s how five of them are backing their crypto dreams.

Singapore is the crypto hub with parental guidance

Singapore has long stood out as a financial hub, bolstered by its AAA credit rating, low corporate tax rates and pro-business regulations. With the emergence of digital assets, the Lion City is among the front-runners in the crypto hub race.

Singapore was among the early movers in crypto regulation. Its Payment Services Act (PSA) of 2019 — enacted in 2020 — was one of Asia’s first comprehensive legal frameworks that covered crypto activities. 

The PSA uses the term “digital payment token” (DPT) to define digital representation of value that can be transferred, stored or traded electronically — like crypto.

At the time of writing, there are 33 DPT service providers licensed by the Monetary Authority of Singapore (MAS), the city-state’s central bank. Casper Johansen, co-founder of Singapore- and Hong Kong-based Spartan Group, said license approvals have moved at a measured pace, giving faster-moving hubs like Dubai room to catch up.

“Singapore is more of an institutional financial hub than a retail financial hub,” Johansen said, alluding to the city-state’s limitations on crypto marketing to retail investors.

Singapore’s retail crypto promotion ban includes social media influencer marketing and third-party websites. Source: Monetary Authority of Singapore

“The ban on marketing to retail has not affected Singapore’s position as a global crypto hub. Crypto firms set up in Singapore for the low and transparent taxes, strong regulatory framework and rule of law, world-class professional services, ease of living and global connectivity,” Johansen added.

But cracks have emerged recently, particularly around immigration and hiring policy. In late 2024, concerns flared when the CEO of blockchain analytics firm Nansen, Alex Svanevik, shared that he was denied permanent residency. The government has ramped up efforts to prioritize local hiring amid growing political sensitivity over foreign labor.

Nansen CEO’s permanent residency rejection highlighted Singapore’s tight visa and immigration environment. Source: Alex SvanevikUAE rolls out the welcome mat for crypto hub status

Unlike other crypto hub contenders, Dubai has a dedicated digital asset regulator, the Virtual Assets Regulatory Authority (VARA). 

Its wide-ranging licensing regime provides clear guidelines — even for NFT platforms — which major economies like the European Union have yet to address. The EU’s Markets in Crypto-Assets (MiCA) framework currently excludes NFTs.

VARA’s clarity is appealing to companies frustrated by regulatory uncertainty elsewhere. Binance, a borderless exchange with no official head office, has had to rethink that model under global regulatory pressure — and the exchange’s ties to the UAE have been growing.

Richard Teng, former CEO of free zone Abu Dhabi Global Market, took over as the CEO of Binance after Zhao, and has recently hinted that UAE is a strong candidate for the exchange’s headquarters, though a decision hasn’t been made yet.

Binance’s first institutional investment is a $2-billion bet from Abu Dhabi-based MGX. Source: Binance

The UAE also provides its own incentives, such as no personal income tax and free zones like the Dubai Multi Commodities Centre (DMCC) and Dubai International Financial Centre (DIFC) offer 0% corporate tax advantages and 100% foreign ownership.

Related: The lessons learned at Operation Chokepoint 2.0 Congressional hearings

Crypto firms have reported easier access to banking services in Dubai, which is an improvement over the challenges companies say they’ve faced in the US under “Operation Chokepoint 2.0.”

Hong Kong makes crypto hub push with retail access and staking ETFs

Hong Kong has long acted as a financial gateway to mainland China, where crypto activities like mining and trading remain banned.

Previously, the city had a voluntary licensing regime, when only OSL and HashKey were licensed to serve institutions and professional investors. In Hong Kong, professional investors are legally defined as those with portfolios worth at least 8 million Hong Kong dollars (about $1 million). 

It was later updated to the mandatory regime, launched in 2023, which opened the doors to retail. 

The shift to mandatory licensing marked a turning point. OSL and HashKey became the first exchanges authorized to serve retail investors, while firms like Bybit and OKX withdrew their applications and exited the market. As of now, 10 platforms are licensed, while 15 have either withdrawn or been rejected.

Eight applicants in Hong Kong still wait the SFC’s decision. Source: Securities and Futures Commission

Hong Kong has made further strides with the listing of Bitcoin and Ether (ETH) ETFs, and recently approved staking within Ether ETFs, which is not yet permitted in the US. It has also introduced stablecoin sandboxes under the supervision of the Hong Kong Monetary Authority to trial approved digital assets in a controlled environment.

“Sandboxes are an experiment, so too are staking ETFs,” said Kelvin Koh, a Spartan Group co-founder. “The key point is that these experiments are happening in Hong Kong.”

Hong Kong recently released its ASPIRe roadmap in February 2025, which aims to foster blockchain innovation and fill regulatory gaps to set the city up as a global crypto hub.

Hong Kong’s five-pillar strategy to become a crypto hub. Source: Securities and Futures CommissionTrump 2.0 dreams of crypto hub

US crypto firms were stuck in regulatory gridlock under the Securities and Exchange Commission formerly led by Gary Gensler, whose aggressive “regulation by enforcement” strategy triggered years-long legal battles.

That changed with the inauguration of President Donald Trump, who has embraced a crypto-friendly stance. The SEC has since dropped multiple high-profile cases and investigations, including those against Coinbase, Uniswap and Consensys, signaling a shifting regulatory climate that is prepared to welcome back crypto to US soil.

President Trump declares the US the future capital of AI and crypto. Source: The White House

Binance.US resumed US dollar services in February after 18 months of restriction that followed enforcement action from the Commodity Futures Trading Commission, a $2.7-billion settlement and a four-month prison sentence for ex-Binance CEO Changpeng Zhao.

Related: 8 major crypto firms announce US expansion this year

Rival exchange OKX reentered the US market in April 2025 after a $500-million settlement with the Department of Justice. Also in April, Nexo announced — during an event with Trump’s son in attendance — that it rekindled its American dream after scrapping it in 2022.

Traditional finance is warming up, with institutional investments flooding into Bitcoin and Ether spot ETFs, provided by some of the world’s largest asset managers, including the $11.5-trillion giant BlackRock.

The financial love affair goes both ways as crypto firms are also increasingly open to integrating into the existing US infrastructure. 

Galaxy Digital listed on Nasdaq on May 16, Circle is considering another IPO attempt, and Hong Kong’s blockchain unicorn Animoca Brands is now eyeing a New York listing, citing Trump’s stance on crypto.

NYC Mayor Eric Adams opens Wall Street to crypto. Source: Yedda Araujo/Cointelegraph

The world’s largest financial center, New York City, is making its own move. Mayor Eric Adams said on May 12 that the Big Apple is “open for business” with crypto companies. 

UK’s crypto hub push goes quiet, but London’s still calling

In 2023, then-Prime Minister Rishi Sunak launched a bold vision to make the UK a global crypto hub, pushing for stablecoins to be recognized as regulated payment instruments and outlining a broader framework to integrate crypto into the country’s financial system. 

That momentum translated into real movement: In April 2025, the UK Treasury released near-final legislation aimed at bringing crypto assets — like trading platforms, stablecoins and staking services — within the country’s regulatory perimeter.

The Financial Conduct Authority (FCA) is now consulting on how to regulate intermediaries, lending and other core parts of the ecosystem, signaling continued regulatory development.

But while the machinery of regulation keeps turning, the political will has cooled. As Arvin Abraham, partner at law firm Goodwin’s private equity group, told Cointelegraph, crypto was once central to Sunak’s competitiveness agenda, but under the current Labour government, that focus has faded.

The new Financial Services Growth and Competitiveness Strategy, spearheaded by Chancellor Rachel Reeves, highlights fintech as a priority without a focus solely on crypto.

“The UK does not feel like it’s prioritizing it as much as it was a few years ago,” Abraham said.

In January, Andreessen Horowitz announced the closure of its UK office to move back to the US. Source: Anthony Albanese

Abraham added the UK remains “one of the best places to set up a new startup,” especially for early-stage capital raising. 

He points to generous tax incentives for angel investors and the unique convergence of finance and startups in London, calling it “probably one of the best cities in the world for fintech-type businesses.” 

In that sense, even without headline-grabbing crypto policy, the UK’s structural appeal still draws Web3 firms — just now with a quieter backdrop.

Magazine: South Africa’s digital-nomad crypto hub: Cape Town, Crypto City Guide

Franklin, a hybrid cash and crypto payroll provider, is launching a new initiative that aims to turn idle-sitting payroll into an opportunity for yield.

The new solution, dubbed Payroll Treasury Yield, uses blockchain lending protocols to help firms earn returns on payroll funds that would otherwise sit idle, the company told Cointelegraph in an exclusive statement.

Franklin said its new offering integrates Summer.fi, a decentralized finance (DeFi) lending platform, to allow companies to deposit stablecoin-denominated payroll reserves into smart contract-based lending pools.

These funds are lent to vetted borrowers, and companies earn yields while retaining access to their capital. Companies maintain full custody throughout the process, and smart contracts used are audited to reduce risk.

“The problem that Franklin solves for is two-fold,” Megan Knab, founder and CEO of Franklin, told Cointelegraph. For companies that have already integrated crypto onto their balance sheets, Franklin helps them use those assets to manage their operations, she said.

“But for the broader market, we are enabling business models of the future, where money moves instantly, more intelligently, and to more globally,” Knab added.

Source: Franklin

Related: PayPal to offer 3.7% yield on stablecoin balances: Report

Alternative to T-Bills

Franklin said its new offering is an alternative to traditional treasury tools like sweep accounts or T-bills, which often involve operational complexity and limited returns.

Furthermore, it differentiates from earned wage access (EWA) platforms, which enable employees to access their earned wages before their scheduled payday by avoiding additional debt and associated costs.

“Traditional payments in the next decade will run entirely on public blockchain rails as a wholesale replacement to ACH and SWIFT,” Knab said.

She added that if onchain payroll products go mainstream, banks could fade into the background. While technology may replace many banking functions with self-custody tools and smart contracts, regulatory frameworks will still require accountable legal entities.

The result may be “zombie-like institutions” — banks in name only, existing to meet compliance rules but playing a minimal role in actual payment processing, Knab said.

However, decentralized lending comes with risks like smart contract vulnerabilities and market fluctuations. Franklin said it aims to mitigate these by using Summer.fi’s audited contracts and overcollateralized lending.

Related: How to Use tsUSDe on TON for Passive Dollar Yield in 2025

Rising interest in yield-generating strategies

Interest in yield-generating strategies within the cryptocurrency sector has surged in recent years, driven by both retail and institutional investors seeking to maximize returns on their digital assets.

On May 16, Solv Protocol launched a yield-bearing Bitcoin token on the Avalanche blockchain, giving institutional investors more exposure to yield opportunities backed by real-world assets, or RWAs.

On May 1, Ryan Chow, co-founder and CEO of Solv Protocol, said the demand for yield-generating strategies around Bitcoin is surging, especially from firms seeking liquidity without liquidating their BTC.

Magazine: Arthur Hayes $1M Bitcoin tip, altcoins’ powerful rally’ looms: Hodler’s Digest, May 11 – 17

The Cardano Foundation is preparing to release an audit report on its treasury holdings after fresh allegations surfaced claiming misappropriation of roughly $600 million worth of ADA tokens.

Cardano founder Charles Hoskinson is facing renewed scrutiny from community members, including nonfungible token artist Masato Alexander, who alleged that Hoskinson manipulated the ledger using a “genesis key to rewrite the Cardano ledger and take control” of $619 million worth of Cardano (ADA) during the network’s 2021 Allegra hard fork.

Source: Masato Alexander

Related: Nasdaq-listed GDC plans to buy Bitcoin and TRUMP memecoin for $300M

A secondary, “Move Instantneous Rewards” transaction dated Oct. 24, 2021, shows a transfer of over 318 million ADA tokens, which enabled the funds to flow from reserve pools into staking or treasury allocations.

318 million ADA MIR transactions. Source: Cardanoscan

However, ADA redemptions stayed open for another three years after the transaction, responded Hoskinson, adding that the “vast majority of that 350 million ADA was redeemed by the original buyers,” a process that took a total of seven years.

Charles Hoskinson. Source: Cointelegraph

“IOG never gave itself 350 million unclaimed ADA. This is a lie. The vast majority was claimed, and the remaining that was forfeited after seven years of waiting was donated to Intersect,” Hoskinson wrote in a May 6 X post.

Related: Solana co-founder proposes meta chain to fix blockchain fragmentation

Hoskinson “deeply hurt” by community reaction

Hoskinson confirmed that an audit report related to the hard fork is in progress, but added that he is “deeply hurt” by the community’s mistrust after the allegations.

“To not be given the benefit of the doubt here without strong evidence to the contrary means I don’t have the connection I thought with some people,” Hoskinson wrote in a May 18 X post, adding:

“After the audit report comes out, I’m going to likely turn my X account over to a media team and change the format of my AMAs and X spaces.”

Hoskinson, who was also one of the co-founders of Ethereum, is among the leading figures in blockchain development.

Speaking at Paris Blockchain Week 2025, Hoskinson emphasized the need for collaborative economics in the crypto industry to counter growing competition from traditional tech firms entering the blockchain space due to growing regulatory clarity.

Magazine: Bitcoin eyes ‘crazy numbers,’ JD Vance set for Bitcoin talk: Hodler’s Digest

Update May 20, 2025, 6:25 am UTC: This article has been updated to clarify that the audit report is prepared by IOG, not the Cardano Foundation.

Input Output Global (IOG) is preparing to release an audit report on its treasury holdings after fresh allegations surfaced claiming misappropriation of roughly $600 million worth of ADA tokens.

Cardano founder Charles Hoskinson is facing renewed scrutiny from community members, including non-fungible token artist Masato Alexander, who alleged that Hoskinson manipulated the Cardano ledger using a “genesis key to rewrite it and take control” of $619 million worth of Cardano (ADA) during the network’s 2021 Allegra hard fork.

Source: Masato Alexander

Related: Nasdaq-listed GDC plans to buy Bitcoin and TRUMP memecoin for $300M

A secondary, “Move Instantneous Rewards” transaction dated Oct. 24, 2021, shows a transfer of over 318 million ADA tokens, which enabled the funds to flow from reserve pools into staking or treasury allocations.

318 million ADA MIR transactions. Source: Cardanoscan

However, ADA redemptions stayed open for another three years after the transaction, responded Hoskinson, adding that the “vast majority of that 350 million ADA was redeemed by the original buyers,” a process that took a total of seven years.

Charles Hoskinson. Source: Cointelegraph

“IOG never gave itself 350 million unclaimed ADA. This is a lie. The vast majority was claimed, and the remaining that was forfeited after seven years of waiting was donated to Intersect,” Hoskinson wrote in a May 6 X post.

Related: Solana co-founder proposes meta chain to fix blockchain fragmentation

Hoskinson “deeply hurt” by community reaction

Hoskinson confirmed that an audit report related to the hard fork is in progress, but added that he is “deeply hurt” by the community’s mistrust after the allegations.

“To not be given the benefit of the doubt here without strong evidence to the contrary means I don’t have the connection I thought with some people,” Hoskinson wrote in a May 18 X post, adding:

“After the audit report comes out, I’m going to likely turn my X account over to a media team and change the format of my AMAs and X spaces.”

Hoskinson, who was also one of the co-founders of Ethereum, is among the leading figures in blockchain development.

Speaking at Paris Blockchain Week 2025, Hoskinson emphasized the need for collaborative economics in the crypto industry to counter growing competition from traditional tech firms entering the blockchain space due to growing regulatory clarity.

Magazine: Bitcoin eyes ‘crazy numbers,’ JD Vance set for Bitcoin talk: Hodler’s Digest

Strategy, formerly MicroStrategy, and the top corporate Bitcoin holder, acquired nearly $765 million of Bitcoin last week. The purchase comes as the company faces a class-action lawsuit.

According to a May 19 announcement, Strategy acquired 7,390 BTC for about $764.9 million at an average price just under $103,500. Strategy reported a Bitcoin yield of 16.3% year-to-date.

According to a May 19 filing with the US Securities and Exchange Commission (SEC) filing, the firm was also just hit with a class action lawsuit. The suit accuses Strategy officials of having failed to represent the nature of Bitcoin investments accurately.

As of May 18, Strategy holds 576,230 BTC acquired for around $40.18 billion at an average price of $69,726 per coin. At current prices, the company’s total holdings are valued at more than $59.2 billion, representing an unrealized gain of $19.2 billion, or 47%.

According to CoinMarketCap data, Bitcoin traded at around $102,615 at the time of writing, up 20.3% over the last month.

Bitcoin’s price chart. Source: CoinMarketCap

Related: Jim Chanos takes opposing bets on Bitcoin and Strategy

Strategy hit with a lawsuit

In a recent , “a purported class action lawsuit was filed in the US District Court for the Eastern District of Virginia against” the company’s executives, including executive chairman Michael Saylor, its president and CEO Phong Le and executive vice president and chief financial officer Andrew Kang.

Strategy officials are accused of “violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act.” The filing states:

“The [suit claims] that the named defendants made false and/or misleading statements with respect to and/or failed to disclose information with respect to the anticipated profitability of our Bitcoin-focused investment strategy and treasury operations, and the various risks associated with bitcoin’s volatility.“

Related: Strategy will beat all public equities with Bitcoin, analyst says

Corporate Bitcoin treasury trend grows

Strategy’s Bitcoin treasury strategy has inspired multiple other companies to follow in its footsteps. Last week, shares of luxury watchmaker Top Win surged more than 60% in premarket trading after the company said it would adopt a Bitcoin accumulation strategy and had changed its name to AsiaStrategy.

AsiaStrategy said it is partnering with Sora Ventures to implement its plan, which previously partnered with Metaplanet in 2024 to create Japan’s first corporate Bitcoin treasury. Metaplanet now holds more Bitcoin than El Salvador. Also last week, a Bahrain-based listed catering company with a $24.2 million market cap adopted a Bitcoin treasury strategy in partnership with investment firm 10X Capital.

Magazine: Rise of MicroStrategy clones, Asia dominates crypto adoption: Asia Express 2024 review