Byron Gilliam

This is a segment from The Breakdown newsletter. To read full editions, <a href="https://blockworks.co/brand/the-breakdown">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“The bad cars tend to drive out the good.”



— George Akerlof
</blockquote>



In his 1970 paper “The Market for Lemons,” economist George Akerlof explained what happens when sellers have more information than buyers.



In the market for used cars, for example, the odds you’ll get a lemon are disproportionately high due to an “asymmetry in available information.”



Because buyers can’t tell good cars from bad ones, they end up trading at the same price — a price that’s too low for a good car and too high for a bad one.



Owners of bad cars, knowing what they have, are therefore incentivized to sell (usually to buyers who can only guess what they’re buying.)&nbsp;



This floods the market with lemons.



“Gresham’s law has made a modified reappearance,” Akerlof warned. “For most cars traded will be the ‘lemons,’ and good cars might not trade at all.”



The result is lower quality for buyers and a market that slowly eats itself.



“It is quite possible,” Akerlof wrote, “to have the bad driving out the not-so-bad driving out the medium driving out the not-so-good driving out the good in such a sequence of events that no market exists at all.”



This may be where crypto is heading, too: “ Liquid token investors are concerned that tokens are becoming a lemon market,” Felipe Montealegre told the <a href="https://www.youtube.com/watch?v=bGtLIf_UW9U">Empire podcast</a> this morning.



That might seem surprising, given that blockchains are inherently transparent, but that doesn’t mean there’s nothing for crypto projects to disclose.



One argument against regulating tokens has always been that there’s nothing to regulate; regulation is primarily about disclosure and in crypto, everything you’d need to know about a fully decentralized project is theoretically disclosed onchain.



But few projects are fully decentralized.



For all the rest, highly price-relevant details like lock-ups, market-making deals and OTC transactions remain opaque.&nbsp;



Even the most basic things like how much revenue a project earns or how many tokens exist are often difficult to determine.



The primary sellers of any given token — typically the token’s creators — know all these things, of course. That asymmetric informational advantage may be turning crypto into a market for lemons.&nbsp;



But perhaps not for long!



This morning, Blockworks launched a “<a href="https://blockworks.co/news/token-transparency-framework">Token Transparency Framework</a>” that will encourage token projects to eliminate the informational advantage crypto sellers have over buyers simply by telling buyers everything they need to know.



This is the premise of all securities regulation.



US regulators like to say that their goal is to protect investors, but their job is simply to inform them.



It may be the most important job in markets.



Before the SEC was created in 1934, investors had so little information about companies and the equities they issued that most didn’t bother with the stock market. They bought bonds instead, knowing at least that companies were legally bound to pay them back.



Those who did try their luck in the stock market spent most of their time attempting to second guess what a company’s insiders might do next — because the insiders were the only ones that knew anything.



The introduction of securities regulation and insider trading laws was an attempt to correct this by creating at least a perception of fairness that would encourage broader participation in stock markets.&nbsp;



Forward-thinking companies and exchanges welcomed their regulators, knowing that if people didn’t think the investing game was fair, few people would play it.



(Just visit any schoolyard playground to see how long an unfair game will last.)



But investing is more than a game, of course, so the stakes were much higher.



“If capitalism is to be maintained,” NYSE President Emil Schram told <a href="https://time.com/archive/6804272/wall-street-every-man-a-capitalist/">Time Magazine</a> in 1941, “the Stock Exchange has to be accepted by the public, a place where we can raise the capital we need. We have to get people out of the idea that the exchange is just a big gambling den.”



It seems to have worked: An estimated <a href="https://news.gallup.com/poll/1711/stock-market.aspx">62% of US adults</a> now own equities, vs. <a href="https://www.sechistorical.org/collection/papers/1940/1940_1001_DistributionOwnership_1.pdf?utm_source=chatgpt.com">less than 3%</a> in the 1930s.&nbsp;



With luck, Blockworks’ transparency framework could do something similar for crypto.



<a href="https://x.com/smyyguy">Dan Smith</a> describes the framework he helped create as a “crypto-native S1,” referencing the exhaustive IPO filing in which the SEC compels companies to divulge every possible thing a prospective investor could possibly want to know.



And that is pretty much the SEC’s entire job.



Regulators don’t pass judgement on whether a stock offering is good or bad, only that a company is sharing enough information to allow investors to make that determination for themselves.&nbsp;



Blockworks’ transparency framework is an important step in the same direction.



To prevent crypto from becoming a market for lemons, buyers just need to know what sellers do.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

The Breakdown Newsletter

Crypto doesn’t have to be a market for lemons

Jeff Albus

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



This isn&#8217;t a promo piece. This is a totally normal weekly markets update that just so happens to include news of a <a href="https://blockworks.co/token-transparency">sweeping transparency initiative</a> that may reshape token due diligence forever, thanks to your friendly neighborhood content goblins at Blockworks.



Just so we&#8217;re all clear.



The week began with SOL in a minor rotation. We&#8217;re still off local highs, but prices <a href="https://blockworks.co/price/sol">remain</a> steady within the $140-$150 range. Bitcoin similarly <a href="https://blockworks.co/price/btc">hodls</a> around $104k, reasonably unfazed by <a href="https://www.investors.com/news/strait-of-hormuz-oil-prices-iran-israel-conflict-stock-market/">geopolitical noise</a> out of the Strait of Hormuz.&nbsp;



Though, if we&#8217;re reading tea leaves, crypto will likely remain range-bound until there&#8217;s clearer direction from the Fed or a decisive break in macro volatility.



Kamino v2 is now three weeks old. According to <a href="https://app.blockworksresearch.com/research/kamino-v2-a-new-growth-lever">a recent report</a> from Blockworks Research, it has pulled $230 million in new deposits, $90 million in fresh loans and turned looping PT-tokens into an institutional-grade yield strategy.



Jupiter volumes are cooling from memecoin fever highs but still <a href="https://app.blockworksresearch.com/research/kamino-v2-a-new-growth-lever">dominate</a> Solana&#8217;s DEX flow. Margin markets are consolidating. Drift now commands ~$923 million in deposits and ~$230 million in borrows, with growing integration between perps and lending. MarginFi, sidelined by earlier exits, is stirring again.



Maple and Apollo markets are open for business, offering exposure to real-world private credit through syrupUSDC and sACRED. Multiply strategies remain <a href="https://app.blockworksresearch.com/research/kamino-v2-a-new-growth-lever">dominant</a>, with SOL utilization north of 80% across major markets.



A problem that persists, though, is that when it comes to Solana&#8217;s most sophisticated DeFi strategies, so much of this activity remains difficult to track and trust. Underlying mechanics tend to be scattered across contracts, governance threads and backwater Discord channels.



Which brings us, in a very convincing segue, to Blockworks&#8217; new Token Transparency Framework.



Launching this week, the framework <a href="https://x.com/Blockworks_/status/1935321626788380714">introduces</a> an open-source standard for token project disclosures. It establishes 18 weighted criteria across four categories, including project purpose, revenue sources, equity-token relationship, token allocation and vesting schedules, related-party transactions, market-making agreements and more.



Each project is <a href="https://blockworks.co/token-transparency">scored out of 40</a> based on the completeness and materiality of its disclosures, with Blockworks acting as the first audit layer atop these self-reported filings.



Early adopters <a href="https://x.com/Blockworks_/status/1935321703154074041">include</a> Jito, Jupiter, Raydium, Morpho, Aerodrome and Stride, all of which have completed filings and received <a href="https://impressive-horses-5641a8b530.media.strapiapp.com/Jupiter_Token_Transparency_Framework_Q2_2025_6351fa32d7.pdf">published transparency scores</a>.&nbsp;



Transparency is a baseline for trust. As capital rotates between lending markets and perps platforms, protocols are leaning into increasingly complex primitives, from principal token loops and private credit vaults to structured auto-compounding strategies.



With macro still mostly in wait-and-see mode, eyes are back on core infrastructure: lending dynamics, staking derivatives and real volume durability. Expect protocols with clear risk frameworks and transparent capital flows to lead the next rotation.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Blockworks Research

Macro volatility keeps Solana range-bound

Casey Wagner

The Federal Reserve on Wednesday left interest rates unchanged for a fourth consecutive time. Federal Open Market Committee members still expect to issue two rate cuts this year, unchanged from their projections in March.&nbsp;



“No one holds these rate paths with a great deal of conviction,” Fed Chair Jerome Powell said during Wednesday afternoon’s press conference, cautioning the public to not read too closely into the so-called “<a href="https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20250618.pdf">dot plot</a>.”&nbsp;



“We do this once a quarter. It&#8217;s a hard thing to do,” he added.&nbsp;



Central bankers now expect the personal consumption expenditures (PCE) price index, the Fed’s preferred inflationary gauge, to hit 3%, versus 2.7% in March.&nbsp;



Committee members anticipate unemployment to end the year at 4.5% versus 4.4% in March. Median expectations for gross domestic product dipped to 1.4% from 1.7% in March.&nbsp;



In terms of when those two interest rate cuts might come, Powell said it is “very, very hard to say when that will happen,” but he insisted that it will eventually happen.&nbsp;&nbsp;



“As long as the economy is solid, though, as long as we&#8217;re seeing the kind of labor market that we have and reasonably decent growth and inflation moving down, we feel like the right thing to do is to be where we are,” he added.&nbsp;



When asked whether he planned to stay on as a Fed Governor after his term as Chair ends in May 2026, Powell said he isn’t “thinking about that.”&nbsp;



“I’m thinking about this,” he said.&nbsp;



The comment comes after President Donald Trump earlier in the day expressed frustration with Powell and his decision to leave rates untouched so far this year.&nbsp;



“Europe had 10 cuts, and we had none,” Trump told reporters. “And I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Federal Reserve

Fed leaves rates unchanged, increases inflation projections

Ben Strack

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



As you’ve probably heard a thousand times: Tokenization is in its early stages.&nbsp;



But a new tidbit seems to confirm that the utility of onchain assets will continue to evolve.&nbsp;



As it stands now, stablecoins are “really the only [RWA]” that have gained substantial product-market fit, Ondo Finance CEO Nathan Allman recently told me. (My fuller Q&amp;A with Allman will hit<a href="http://blockworks.co/"> Blockworks.co</a> a bit later).&nbsp;



<a href="https://blockworks.co/news/circle-shares-nyse-day-one">Circle had its IPO</a> earlier this month and the Senate<a href="https://blockworks.co/news/genius-stablecoin-act-passes-senate-vote"> passed the GENIUS Act</a> last night, both of which brought stablecoins further into the public eye.



While the promise of more widespread access to<a href="https://blockworks.co/news/tokenized-rwa-segments-will-boom-next"> tokenized stocks, bonds</a> and other assets has not yet been fully realized, another tokenized RWA with growing traction is money market funds.&nbsp;



BlackRock got into that game with Securitize via the USD Institutional Digital Liquidity Fund (BUIDL) launch in March 2024. Its assets under management stand at roughly $2.9 billion.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1213" height="492" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/06/image-3.png?w=1024&amp;h=1024" alt="" class="wp-image-104119" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/06/image-3.png?w=1213 1213w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/image-3.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/image-3.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/image-3.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/image-3.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/image-3.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/image-3.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/image-3.png?w=80 80w" sizes="auto, (max-width: 1213px) 100vw, 1213px" /></figure>



Now, certain institutional clients using Crypto.com and Deribit can post BUIDL as collateral. The thought is enabling capital allocation flexibility while getting the relative price stability of tokenized Treasurys.



And the yield.



As Securitize CEO Carlos Domingo put it in a statement: “The fund is evolving from a yield-bearing token into a core component of crypto market infrastructure.&#8221;



Tokenized money market funds are not here to replace the ~$240 billion stablecoin market, industry watchers have noted.



Standard Chartered’s Waqar Chaudry<a href="https://blockworks.co/news/tokenized-yield-funds-complement-stablecoins"> told me in March</a> that the two are “definitely complementary,” adding: “Many might prefer tokenized funds for collateral management.”



But while BlackRock’s Robbie Mitchnick sees tokenized yield funds as the predominant cash savings vehicle, he believes stablecoins “will retain their dominance” for payments and transactions. Deribit’s nearly $1.2 trillion in trading volume was one reason<a href="https://blockworks.co/news/coinbase-deribit-deal-focus-derivatives"> </a>Coinbase <a href="https://blockworks.co/news/coinbase-deribit-deal-focus-derivatives">agreed to buy</a> the company last month. 



We’ll see if and how today’s development contributes to accelerated tokenized yield fund adoption. And, of course, we’ll get back to you.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

BlackRock

BUIDL as collateral? Another step in the tokenization story

Kate Irwin

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/thedrop" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Crypto “L3” chain B3 has acquired PC builder Andromeda Insights and is releasing the <a href="https://shop.b3.fun/products/b3pc-crypto-gaming-pc-military-grade-encryption-self-destruct-button-secure-hardware-wallet">B3PC</a>, a blue-lit prebuilt for gamers that’s got some crypto integrations plus a dedicated “Destroy” button.



B3 <a href="https://x.com/b3dotfun/status/1934997553864421439">says</a> it acquired Andromeda because the PC startup is already financially successful, reportedly making “millions” in annual revenue and seeing 1,000% annual growth without a marketing budget.&nbsp;



Released imagery of one example of the customizable PC shows seven preinstalled case fans, two T-Force RAM sticks, an RTX 5090 GPU and a unique case design.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfahANf5oO-FvdAbOSL8Rs4fuAI46D-6hxJHRfg0wLzzE72bP9AtfbIKKpEMwKMhtolHjeud-Oy1zXXu44sT3jqmg0_RP9Toa-SnCz50xU0QU9dXH9oiBRg8Hfzt6UqHjFWQ2s0ug?key=jQOFNMLzsMMe36c8MN0SWg" alt=""/><figcaption class="wp-element-caption">Image: Side view of the B3PC.</figcaption></figure>



Each B3PC will also come with an integrated Trezor Safe 5 crypto hardware wallet and an attached NFT that signifies the desktop PC onchain.



One part of this build that B3 really wants you to know about are its two privacy-forward options for wiping its built-in SSD. You can purge it digitally (and reuse it) with the Secure Erase feature regardless of whether the PC has power. It looks like that’s what the “Delete” button is for.



Or, if you’re looking for a more severe option, you can “Self-Destruct” your machine’s memory by pressing and holding the “Destroy” button for 10 seconds. This scary red button has a protective cover, though, to prevent your cats or kids from purging your PC by accident.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcKbiUbU9-1bC5B_AI-rX8yGz76ExqPLZmEP2HrVHg5d0ztGQzVqGjemxGW-rd0bVN3EGKWx3mD-ucRxkzKOweK1L-GRlmDlKjeUZSHQW8tPCzTmyOrsWsjdgFbUXjebGG9yRwllg?key=jQOFNMLzsMMe36c8MN0SWg" alt=""/></figure>



The Self-Destruct mode essentially sends a high voltage to burn the PC’s NAND flash memory, according to B3’s website.



Besides that, there are some other features that may appeal to the privacy-conscious, as well as fans of “rugged” tech.&nbsp;



The B3PCs use AES encryption (alternatively, you can enable encryption on any existing Windows 11 PC by using Bitlocker).



When it comes to external temps, these PCs have been tested to handle environments anywhere from -55°C to 125°C (-67°F to 257°F). They also come with power surge protection to prevent short-circuits or electrostatic damage.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdU-Yedqzo73JqfbHBOhpG8UxVQqEi6SnQycx1FdipybjFwakefQzH7CAxgzvaypa2u9VbtT4finpiX8PxJTesKNHG2fzikMp2VFOX7H25gL-8VZS_yWJvgEuRJX1ZakXtJqhG65A?key=jQOFNMLzsMMe36c8MN0SWg" alt=""/><figcaption class="wp-element-caption">Image: B3PC’s scary red button.</figcaption></figure>



Preorder deposits are now open for $200 worth of fiat or any cryptocurrency, but the PCs aren’t expected to ship until early next year. If you pay in B3’s token, you’ll get a discount, though it’s unclear how much will be shaved off.&nbsp;



The exact cost of a B3PC will vary based on what’s added, but Andromeda typically charges anywhere from $1,400 to just under $5,000 per prebuilt (for reference, it’s easy to spend upwards of $2,000 on a decked-out gaming rig when building one yourself — and prebuilts tend to cost a bit more by default).



B3 — which was developed by ex-Coinbase staff — is solely focused on gaming. But the browser-based, vertical-format hypercasual games it offers right now through <a href="https://basement.fun/">Bsmnt</a> don’t require a PC at all, and definitely not one that costs thousands of dollars. Apparently, the PCs will come with some B3 games preloaded, which I’m not sure everyone will want (gamers generally dislike bloatware, and a lot of PC gamers dislike mobile-style games).



Gaming-related activity doesn’t seem to be happening at all on Base itself right now. The category currently makes up less than 0.1% of all transactions on the Ethereum L2, according to Blockworks Research data.



B3, however, is seeing some transactions. <a href="https://explorer.b3.fun/">Over 7.1 million</a> wallet addresses have interacted with the chain, which builds on the Base stack. B3 has seen over 119 million total transactions since it launched last year.



The B3 team hinted that the B3PC is its first hardware product, with more to come in the future.



The gaming PC market is expected to keep growing, but not spike massively, in coming years. Grandview Research estimates it was around $61.8 billion last year, and may grow to $129.9 billion by 2030.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdNGJQSS3rLf1Nz1Ia8OW3ADqKs8S86XyBOkN-U7MyrpsqjEu3zTvQAyIOzYZeL2iD1WidWQxRz9x_LtvNueEWvZivuE-Y053I1hSUZCOlbtnI0ZvXke8r3UCDHB5N4Y4vpFsaB7A?key=jQOFNMLzsMMe36c8MN0SWg" alt=""/></figure>



Mobile gaming, by contrast, is already double the size of the PC market for a variety of reasons, including easier accessibility and lower cost. It was believed to be a <a href="https://www.grandviewresearch.com/industry-analysis/mobile-games-market">$139 billion</a> market in 2024 and is projected to grow at a compound annual growth rate of 10.2% in the next five years.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Gaming

B3 acquires PC startup, unveils desktop with ‘Destroy’ button

Macauley Peterson

This is a segment from the 0xResearch newsletter. To read full editions, <a href="https://blockworks.co/newsletter/0xresearch">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



On June 12, a massive outage originating in Google Cloud disrupted over 70 services globally, affecting platforms like OpenAI (ChatGPT suffered its longest outage to date), Cloudflare, Spotify, Discord, Snapchat, UPS, DoorDash and more. We often don’t appreciate how much critical infrastructure we’re now routing through opaque, centralized systems. And it’s not just a Web2 story. It’s also a DeFi one.



Before the likes of OpenAI were scrambling to reboot, another less publicized outage rippled through crypto: TRM Labs, a widely used blockchain compliance provider, went down on June 10 for nearly 12 hours after a Salesforce-related failure. If you were using TRM directly to screen transactions, your policy layer went offline.



If, on the other hand, you were using Predicate, you simply switched providers and kept running.



<h2 class="wp-block-heading">What is Predicate?</h2>



Predicate is building a programmable policy enforcement layer for DeFi. Think of it as an operating system for pre-transaction compliance. Its latest <a href="https://predicate.io/blog/risk-management-framework-for-institutional-liquidity-on-uniswap-v4">white paper</a>, co-published with <a href="https://blockworks.co/tag/paxos">Paxos</a> and <a href="https://blockworks.co/tag/uniswap">Uniswap</a>, outlines how hooks in <a href="https://blockworks.co/news/uniswap-v4-goes-live">Uniswap v4</a> can now enforce asset-specific rules before swaps or liquidity deposits occur. That’s things like jurisdictional geofencing, market conduct constraints or investor accreditations, according to Predicate CEO Nikhil Raghuveera.



“You might have a pool that enforces different rules for different users that could be based on their IP [or] on accreditation or some other kind of entity status,” Raghuveera told Blockworks. “It could be literally anything.” That includes onchain or offchain data.



In the case of Paxos, whose USDL stablecoin is yield-bearing and rebasing, the situation is especially nuanced. US regulators may treat such an instrument as a money market fund, so Paxos International, which issues USDL from Abu Dhabi, must geofence US access. Using Predicate, the Paxos liquidity pool on Uniswap enforces a custom policy enforced via frontend IP gating or onchain attestations. A second hook wraps USDL into a non-rebasing token behind the scenes so it can interact with Uniswap’s accounting model. Thus, Paxos meets its regulatory constraints without compromising composability.



<h2 class="wp-block-heading">Part of the modular movement</h2>



When recalling the outage headaches, a highlight is Predicate’s fallback architecture. Compliance “verdicts” (e.g., “This wallet passes TRM’s screen”) are signed by off-chain operators and checked onchain via Uniswap hooks. If one provider like TRM fails, another — say, Elliptic or Crystal — can step in without changing the smart contracts.



This modularity mirrors trends in decentralized AI, where teams like <a href="https://blockworks.co/newsletter/daily/issue/post_ffe9ae74-0750-4e9c-9475-0b45e2612965">Venice AI</a> use decentralized networks such as <a href="https://blockworks.co/newsletter/daily/issue/post_9690fc34-cf42-4cb2-94fe-a7589dc910bc">Akash</a> to route around centralized GPU bottlenecks.



“Policy is critical infrastructure because policies determine whether a transaction can go through or not,” said Raghuveera. “You need a holistic set of different pieces in case something goes down.”



We’ve spent years making smart contracts composable. Predicate reminds us that policy must be composable too: resilient to upstream failures, upgradable without liquidity migration and adaptable to jurisdictional nuance.



Institutional DeFi won’t scale on a “one-size-fits-all KYC.” But programmable, source-agnostic compliance enforcement might just work…and still keep the cypherpunks happy.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

0xResearch Newsletter

Predicate, Paxos, and the policy layer

David Canellis

This is a segment from the Supply Shock newsletter. To read full editions, <a href="https://blockworks.co/newsletter/supplyshock" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



I subscribe to the multiverse theory.



So, drifting in an endless sea of cosmic baubles beyond the borders of our universe, is a world where Ross Ulbricht has more bitcoin than any other person on Earth.



Unfortunately, the following happened in our shared reality.



It was around this time in 2014 that the US government, through the Marshals Service, was preparing its first ever bitcoin auction: almost 30,000 BTC seized from the Silk Road master wallet.



The coins would’ve technically been worth around $18 million back then, the equivalent of nearly 20% of the average daily BTC trading volume, per <a href="https://data.bitcoinity.org/markets/volume/all?c=e&amp;t=b">Bitcoinity</a> data. Currently, they’d fetch $3.3 billion.



Ross was arrested eight months earlier and had been held at MDC Brooklyn as he awaited trial, which wouldn’t start for another half a year.



On this day, 11 years ago, the US Marshals goofed: The agency <a href="https://techcrunch.com/2014/06/18/bitcoin-auction">accidentally reply-alled</a> to an emailed question from a prospective buyer, revealing the names and/or email addresses of all 40 bidders on the auction list.



US Marshal auctions are meant to be anonymous, so it was clearly a SNAFU.&nbsp;



CoinDesk <a href="https://web.archive.org/web/20140621151239/https://www.coindesk.com/list-possible-silk-road-bitcoin-bidders-allegedly-leaked-us-marshals">identified</a> 17 individuals as a result of the incident — all executives from in and outside crypto — including Barry Silbert, Fred Ehrsam and Michael Moro. A USMS spokesperson quickly apologized.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXemZjGVOrcpshaofyezXvl9tIvz-CkLTKlna2foRtQK2NgOxe-k6rEGx97M80XaAllR0mt6XOKgsQlrQXFW4vS9NEpN8vlimLXmf_LKiKapOR5UYmVEr52-NxxZlzVB2nuYrM1_2g?key=6zkWL3W4GGEb-b_k0QyAmQ" alt=""/><figcaption class="wp-element-caption">A copy of the email with names and emails redacted (<a href="https://techcrunch.com/2014/06/18/bitcoin-auction">source</a>).</figcaption></figure>



In the end, someone who wasn’t identified ended up <a href="https://archive.nytimes.com/dealbook.nytimes.com/2014/07/02/venture-capitalist-tim-draper-wins-bitcoin-auction/?_php=true&amp;_type=blogs&amp;_r=0">winning</a> the whole stash of coins: legendary VC Tim Draper, who paid about $19 million. Draper said he would use the coins as liquidity to back an institutional-grade Bitcoin exchange and financial services platform, Vaurum, which was later <a href="https://www.coindesk.com/markets/2014/11/12/tim-draper-backed-bitcoin-exchange-vaurum-rebrands-as-mirror">rebranded</a> to Mirror.



Mirror never made it out of its invite-only phase. After a series of pivots, the <a href="https://web.archive.org/web/20161006203229/https://mirror.co/#section_welcomehttps://web.archive.org/web/20161006203229/https://mirror.co/#section_welcome">platform</a> quietly went <a href="https://web.archive.org/web/20181119010251/https://mirror.co/">defunct</a> in late 2018.



As for the rest of Ulbricht’s coins, authorities seized 144,336  BTC personally belonging to Ross shortly after his arrest.&nbsp;



Ross initially fought to block the sale of those coins but was unsuccessful, with the government <a href="https://www.forbes.com/sites/andygreenberg/2013/10/25/fbi-says-its-seized-20-million-in-bitcoins-from-ross-ulbricht-alleged-owner-of-silk-road/">making</a> only $48 million at auction. Their current value would be in excess of $15 billion.



A combined 120,045 BTC was later seized from two individuals who had hacked Silk Road’s operational wallets on separate occasions.



In that alternate universe, where Ross still controls all of Silk Road’s bitcoin as they were in 2013, and his personal stash, his total balance would be 294,045 BTC ($30.7 billion) — about half Strategy’s current BTC treasury.



If pooled into one address, it would be the largest bitcoin balance on the entire <a href="https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html">network</a>. Of course, Ross could’ve done anything with those coins between then and now, in that other universe.



At least in this one, Ross still got his freedom.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

History

How Ross Ulbricht could’ve been the richest Bitcoiner on Earth

Dan Smith

Today, the crypto market operates without a single, standardized disclosure framework.&nbsp;



Because of this, the market is left without key information about token supply and vesting schedules, insider incentives, and basic financial data in a fast-moving environment. This information gap fuels mistrust and, ultimately, results in the misallocation of investor capital.&nbsp;



In an effort to close that gap, Blockworks is proud to release the <a href="http://blockworks.co/token-transparency">Token Transparency Framework</a>. Blockworks led this effort with our partners <a href="https://twitter.com/TheiaResearch">Felipe Montealegre</a> of Theia, <a href="https://twitter.com/0xLouisT">Louis Thomazeau</a> of L1D, and <a href="https://x.com/cosmo_jiang">Cosmo Jiang</a> of Pantera.



This framework provides token projects with the ability to communicate a basic set of information to the market.&nbsp;



Designed as a one-time filing, the Token Transparency Framework focuses on 18 criteria, including:



<ul class="wp-block-list">
<li>Supply schedules</li>



<li>Market maker and exchange listing agreements</li>



<li>Related party transactions</li>



<li>Revenue streams</li>



<li>The relationships between equity and token</li>



<li>Foundation token allocations</li>



<li>Offchain entity structures</li>



<li>Financial disclosures</li>
</ul>



More available information means the industry can accelerate toward optimized best practices. Beyond the token issuers themselves, key players in the market directly benefit from this effort:



<ul class="wp-block-list">
<li>Professional investors access streamlined due diligence processes.</li>



<li>Market makers gain a simplified method to evaluate counterparty risk.</li>



<li>Centralized exchanges can accelerate listing velocity via structured data and disclosure.&nbsp;</li>



<li>Retail participants receive otherwise obfuscated information.&nbsp;</li>
</ul>



The Token Transparency Framework represents an opportunity to improve capital allocation in the industry by helping projects signal credibility, allow investors to better underwrite risk with standardized disclosure of information, and prevent bad actors from profiting off ambiguity.&nbsp;



Blockworks views a grassroots disclosure framework as complementary to SEC Commissioner Hester Peirce&#8217;s Safe Harbor 2.0 and SEC Chair Paul Atkins&#8217; views on DeFi. Effective self-regulation better positions the industry for future success.



To this end, the Blockworks team <a href="https://www.sec.gov/file/ctf-memo-jito-labs-blockworks-061325">met with the SEC</a> on June 13 to discuss the framework and solicit feedback.&nbsp;



<h2 class="wp-block-heading">The Initial Cohort</h2>



The framework is now live with an initial cohort of project submissions, including Jito, Aerodrome, Raydium, Stride, Jupiter and Morpho. Completed submissions are publicly available on the Blockworks website, and we encourage other token projects to reach out and apply.&nbsp;



I have immense respect for all teams that participated in the initial round of disclosures. There is no precedent for transparency; these are the first movers that set a new bar.&nbsp;



The transparency scores of the initial cohort all exceed 35, showcasing high visibility into each project’s operations. This will serve as a credible signal in a field of noise that will show the market these players are long-term oriented.&nbsp;



We were excited to see this push previously inaccessible information to the market, especially in responses related to the relationship between token and equity, any advisory billings to the foundation, and market maker agreements.



To put the scores of the initial cohort into perspective, we independently scored four recently launched projects that we believe have taken advantage of the lack of disclosure in this industry. The transparency scores of the problem group range from 8 to 13 — a stark contrast to the initial cohort. Yet, each of these tokens was still listed on a centralized exchange.&nbsp;



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1156" height="648" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/06/AD_4nXevWdudhbMvjnnbiJRb_QXwF0VWqicHS71v7sZqES6FTpiHkN738UI2JZWJtYqEzyr1bFNfuYF74WzWxxjf8yEv0aGPOAb_UEyY39M2Lb5hrBLSHWqC1FYiPMtsaybky1tQ5mn37g.png" alt="" class="wp-image-104070" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/06/AD_4nXevWdudhbMvjnnbiJRb_QXwF0VWqicHS71v7sZqES6FTpiHkN738UI2JZWJtYqEzyr1bFNfuYF74WzWxxjf8yEv0aGPOAb_UEyY39M2Lb5hrBLSHWqC1FYiPMtsaybky1tQ5mn37g.png?w=1156 1156w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/AD_4nXevWdudhbMvjnnbiJRb_QXwF0VWqicHS71v7sZqES6FTpiHkN738UI2JZWJtYqEzyr1bFNfuYF74WzWxxjf8yEv0aGPOAb_UEyY39M2Lb5hrBLSHWqC1FYiPMtsaybky1tQ5mn37g.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/AD_4nXevWdudhbMvjnnbiJRb_QXwF0VWqicHS71v7sZqES6FTpiHkN738UI2JZWJtYqEzyr1bFNfuYF74WzWxxjf8yEv0aGPOAb_UEyY39M2Lb5hrBLSHWqC1FYiPMtsaybky1tQ5mn37g.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/AD_4nXevWdudhbMvjnnbiJRb_QXwF0VWqicHS71v7sZqES6FTpiHkN738UI2JZWJtYqEzyr1bFNfuYF74WzWxxjf8yEv0aGPOAb_UEyY39M2Lb5hrBLSHWqC1FYiPMtsaybky1tQ5mn37g.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/AD_4nXevWdudhbMvjnnbiJRb_QXwF0VWqicHS71v7sZqES6FTpiHkN738UI2JZWJtYqEzyr1bFNfuYF74WzWxxjf8yEv0aGPOAb_UEyY39M2Lb5hrBLSHWqC1FYiPMtsaybky1tQ5mn37g.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/AD_4nXevWdudhbMvjnnbiJRb_QXwF0VWqicHS71v7sZqES6FTpiHkN738UI2JZWJtYqEzyr1bFNfuYF74WzWxxjf8yEv0aGPOAb_UEyY39M2Lb5hrBLSHWqC1FYiPMtsaybky1tQ5mn37g.png?w=466 466w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/AD_4nXevWdudhbMvjnnbiJRb_QXwF0VWqicHS71v7sZqES6FTpiHkN738UI2JZWJtYqEzyr1bFNfuYF74WzWxxjf8yEv0aGPOAb_UEyY39M2Lb5hrBLSHWqC1FYiPMtsaybky1tQ5mn37g.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/AD_4nXevWdudhbMvjnnbiJRb_QXwF0VWqicHS71v7sZqES6FTpiHkN738UI2JZWJtYqEzyr1bFNfuYF74WzWxxjf8yEv0aGPOAb_UEyY39M2Lb5hrBLSHWqC1FYiPMtsaybky1tQ5mn37g.png?w=80 80w" sizes="auto, (max-width: 1156px) 100vw, 1156px" /></figure>



Note, these scores are just for comparative purposes, as we did not reach out to these teams for additional information outside of what is already publicly available.



<h2 class="wp-block-heading">Framework Details</h2>



The framework’s criteria are divided into four categories:



<ul class="wp-block-list">
<li>Project and Team</li>



<li>Token Supply and Allocation</li>



<li>Transactions &amp; Market Structure</li>



<li>Financial Disclosure</li>
</ul>



Investors gain visibility into the operations of businesses and limit the risk of manipulation and abuse through transparent disclosure of these criteria. Negative events across the market in recent months prove the need for a standardized transparency standard.



Each criterion is weighted 0–3 by materiality. Then, it is calculated and aggregated into a &#8220;transparency score&#8221; that reflects the project’s transparency.



Importantly, this score is not a quality assessment on the team or project. Rather, it is a measure of the project or team’s overall transparency.&nbsp;



The responses, scores, and the framework itself will all be open source and publicly available to access.



Blockworks calls on the community to provide feedback on the criteria, for projects to complete the framework, for exchanges to use the framework as a resource in the listings process, and for investors to leverage the framework for due diligence.&nbsp;



We view this as a working document subject to future improvements and iteration. For a deeper conversation, reach out at <a href="mailto:research@blockworks.co">research@blockworks.co</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Blockworks

A new framework for token market transparency

This is a segment from The Breakdown newsletter. To read full editions, <a href="https://blockworks.co/brand/the-breakdown">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



The charters establishing the First and Second Banks of the United States both included a clever clause that limited the ability of those proto-central banks to print money: Every bill issued had to be hand-signed by either the president or cashier of the bank.&nbsp;



This wasn’t an attempt to impose restrictive monetary policy, however — it was more about a Jeffersonian fear of big banks and institutions too far removed from local control.



But the effect was the same: Both the First and Second banks issued less money than their presidents wanted them to, simply because they couldn’t sign bills fast enough.



“We could at once give to the Southern &amp; Western sections of the country two or three millions of sound &amp; useful circulating medium,” Nicolas Biddle, president of the Second Bank of the United States, lamented in 1827. “But to make two millions of five dollar notes, it would be necessary to sign my name 400,000 times, which…is wholly impracticable.”



Biddle found a workaround when he began issuing “bank drafts” — interbank checks which allowed one branch to draw on another&#8217;s reserves (necessary because bank notes issued in one region weren’t always accepted at full value in other regions).



The drafts proved effective — they allowed the bank to provide credit in regions short of currency without Biddle, the third president of the Second Bank of the United States, having to sign thousands of new bank notes.



But those drafts also helped make Biddle the last president of the Second Bank of the United States.



Biddle’s bank drafts were perceived as an abuse of power that allowed the Second Bank to operate far more like a modern central bank the Jeffersonians in Congress were willing to abide — part of what made the bank a “monster,” in President Andrew Jackson’s term.



The Second Bank of the United States closed in 1836 because Congress declined to renew its charter.



Another experiment in restricting the supply of money came in 1863 when the National Currency Act required all nationally chartered banks to back the banknotes they issued with Treasury bonds.



Thereafter, to put $1 of currency into circulation, banks were required to buy $0.90 of federal debt — the result being that, unlike today, banks couldn’t issue notes based simply on local lending demand.



Instead, they could only issue slightly more in currency than they took in from customers as deposits — typically in gold, silver or federally issued &#8220;greenbacks.&#8221;



In 1879, the US government tied its own monetary hands even further by declaring that US dollars would be convertible into a fixed amount of gold — effectively limiting the money supply to the amount of gold the government could credibly promise to redeem.



That may sound appealing in this age of runaway deficit spending.



But the gold standard wasn’t pleasant for the people who lived through it; the monetary discipline it imposed came at a grave cost when the growing US economy demanded more money than the system could supply.



This left the country prone to debilitating bouts of deflation.



William Jennings Bryan declared the gold standard a “crown of thorns” in 1896; in 1924, John Maynard Keynes called the gold standard a “barbarous relic”; and economic historians say the link to gold is largely to blame for the Great Depression.



In 1934, Franklin Roosevelt ended the convertibility of dollars into gold for US citizens and in 1971 Richard Nixon ended it for central banks.



They didn&#8217;t have to — to stay on the gold standard, the US could have raised interest rates, raised taxes and cut spending instead.&nbsp;



But that was unthinkable in 1934 and politically unfeasible in 1971, so we&#8217;ve had a fully fiat monetary system ever since — with dollars backed only by the &#8220;full faith and credit&#8221; of the US government.



It’s worked out better than most predicted — perhaps unsurprising in retrospect since allowing the supply of dollars to expand with the US economy has proven more sensible than constricting it based on how much gold can be dug up in South Africa.



As good as fiat has been for the US, though, we may now be approaching another 1971 moment.&nbsp;



It won’t be as abrupt: If the US hadn’t voluntarily abandoned the gold standard, the gold would have simply left the country and that would have been the end of it.&nbsp;



Today, the process is more of a slow burn — a gradual erosion of faith in the government’s credit.&nbsp;



To forestall it, the US may have to make some of the hard decisions it chose to avoid making in 1971 — to raise interest rates, raise taxes or lower spending.



But even in today’s fully fiat system, the question of who ultimately stands behind the dollar still matters.



Dollar bills are signed by the Secretary of the Treasury, not the chair of the Federal Reserve — because even though it says “Federal Reserve Note” in big letters at the top of each bill, they are liabilities of the government, not the Fed.



But with a “big, beautiful bill” set to add trillions to US debt, the Fed appears to be the last line of defense.&nbsp;



At this week’s FOMC meeting, the market will be looking for clues as to how willing the Fed is to sign off on the government’s runaway spending.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Will the Fed sign off on runaway spending? 

As expected, the Senate passed the <a href="https://blockworks.co/tag/genius-act">GENIUS Act</a> with bipartisan support Tuesday evening. It’s the first stablecoin-focused bill to pass a chamber of Congress.&nbsp;



The bill passed in a 68-30 vote. 



The GENIUS Act “ensures American consumers and businesses can participate in the digital economy with confidence and security,” Sen. Cynthia Lummis, who co-sponsored the legislation, said ahead of Tuesday’s vote.&nbsp;



The <a href="https://www.congress.gov/bill/119th-congress/senate-bill/1582/text?q=%7B%22search%22%3A%22genius+act%22%7D">bill</a> requires stablecoin issuers to maintain fully-backed reserves of US dollars or “similarly liquid” government-issued assets, such as bonds. Issuers with more than $50 billion in issued tokens must complete annual audits.&nbsp;



The law also affords more authority to state regulators, which will be required to maintain regulatory frameworks that are “substantially similar” to those at the federal level. Issuers who exceed $10 billion in issuance must be overseen by federal regulators or apply for an exemption.&nbsp;



Not all members of the minority party are satisfied. Sen. Elizabeth Warren, a longtime <a href="https://www.banking.senate.gov/newsroom/minority/on-senate-floor-warren-urges-colleagues-to-use-their-leverage-and-vote-no-on-genius-act-until-critical-issues-addressed">critic</a> of seemingly pro-crypto policy, called the legislation “flawed.”&nbsp;



“A bill that meaningfully strengthens oversight of the stablecoin market is worth enacting,” she said on the Senate floor last month. “A bill that turbocharges the stablecoin market, while facilitating the President’s corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all.”



Other Democrats resigned that while the bill is not perfect, it is a step in the right direction.&nbsp;



“We weren’t able to include certainly everything we would have wanted, but it was a good bipartisan effort,” Democrat Angela Alsobrooks told reporters on Monday. “This is an unregulated area that will now be regulated.”



The bill received more than 100 proposed <a href="https://www.congress.gov/bill/119th-congress/senate-bill/1582/amendments">amendments</a> from Republicans and Democrats alike.&nbsp;



The next step for Congress will be to pass a market structure bill, Lummis added, saying that draft legislation will be released in the coming weeks.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

congress

Stablecoin bill passes the Senate with bipartisan support

Jack Kubinec

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



With pump.fun set to <a href="https://blockworks.co/news/pumpdotfun-token-sale">reportedly raise</a> $1 billion via a token sale, it’s fair to assume the memecoin launchpad will at least be open to exploring acquisitions as a way of putting its fresh capital to work. Based on my own guesswork and a few conversations with industry watchers, here are four businesses I think could make sense for a pump.fun acquisition.&nbsp;



<h2 class="wp-block-heading">BullX</h2>



Many memecoin traders don’t actually trade through pump.fun’s frontend, opting for the sniping and copy trading features offered by trading bots — many of which run on Telegram.



These bots collect fees on trading volume, which can end up being quite lucrative. Blockworks Research <a href="https://app.blockworksresearch.com/research/telegram-trading-bots">estimated</a> the gross annual revenue for Solana trading bots to have been between $500 million to $1 billion in 2024.&nbsp;



Pump.fun has, so far, been fine to coexist, but as the speculative trading game grows more crowded — and particularly with the entry of more put-together <a href="https://blockworks.co/news/axiom-ycombinator-startup-solana-memecoin-revenue-10m">competitors like Axiom</a> — pump will need to scheme out how it can win back some of those trading volumes.&nbsp;



BullX, a popular Solana Telegram bot that has drawn <a href="https://protos.com/solana-focused-bullx-still-exists-despite-allegations-it-called-it-quits/">allegations</a> of founder disinvolvement, could be a good takeover target.



<h2 class="wp-block-heading">DEX Screener</h2>



On top of sniping, another category where pump.fun loses users is in token discovery. Rather than trying to find their next buy through pump’s somewhat limited and clunky interface, traders have historically turned to platforms like DEX Screener that come with more fine-tuned data and tracking features for traders.&nbsp;



A major way DEX Screener makes money is by charging memecoin projects for a more souped-up page on the platform, and DeFiLlama <a href="https://defillama.com/protocol/dex-screener?revenue=true&amp;groupBy=cumulative">counts</a> it as having made over $100 million in revenue over the past year and change.&nbsp;



Pump.fun has already launched an “advanced” tab that offers DEX Screener-like features, but if it finds DEX Screener users too sticky to win over, it could make sense to just combine the two. It wouldn’t be the first time one went after the other’s users: DEX Screener <a href="https://blockworks.co/news/moonshot-vertical-integration-memecoins">released a memecoin launchpad</a> called Moonshot that, well, hasn’t been much of a moonshot.



<h2 class="wp-block-heading">Titan</h2>



The majority of onchain Solana activity comes from memecoin trading and swaps between SOL and stablecoins, as Blockworks Research’s Carlos Gonzalez Campo has <a href="https://app.blockworksresearch.com/research/solana-meta-aggregators">pointed out</a>. Pump.fun is doing pretty well on the memecoin side of things, but likely few users are swapping USDC for SOL on pump.fun’s AMM.&nbsp;



Much of that volume goes to Jupiter, a DEX aggregator that algorithmically finds the best route for trades to travel to achieve the best possible price. It’s a valuable product, and even if a swap aggregator collects minimal fees, it could be a loss leader to draw users who may then convert to customers of more revenue-generating products.&nbsp;



One candidate here could be Titan, a <a href="https://blockworks.co/news/jupiter-competitor-private-mainnet">newer Solana DEX aggregator</a> that claims its swaps outperform Jupiter most of the time.



<h2 class="wp-block-heading">Cube Exchange</h2>



The best business in crypto is arguably still just running an exchange. If pump.fun had its own centralized exchange, it could access a lot more liquidity and likely diversify out from memecoins into other fields like perpetual futures, or even try to capture trading volume on new asset classes.



Pump.fun memes could also get expedited listings on the exchange, maintaining the platform’s edge against the likes of Coinbase and Binance, which are sometimes slower to list popular new memecoins. Pump could use the distribution from the exchange to drive interest in things like pump.fun livestreams.&nbsp;



Compared to some other targets, acquiring an exchange is an expensive proposition. Cube makes sense because its CEO is Solana-native, having previously worked at the foundation, and the exchange’s <a href="https://coinmarketcap.com/rankings/exchanges/">volume</a> doesn’t tend to run as high as some competitors. 



Backpack <a href="https://blockworks.co/news/backpack-ftx-eu-acquisition-complications/">acquired FTX EU</a> for $32.7 million earlier this year. Cube probably wouldn’t be that cheap, but pump is likely to have lots of cash.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Lightspeed Newsletter

4 companies pump.fun could look at acquiring after its $1B raise

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



US equities and bitcoin were in the red Tuesday afternoon as conflict in the Middle East stretched into a fifth day. Investors are also waiting to hear from the FOMC tomorrow about their interest rate decision and, more importantly, what the committee’s latest Summary of Economic Projections has to say.&nbsp;



Bitcoin had lost 2.7% over the day at 2 p.m. ET, hovering around $104,000. The S&amp;P 500 and Nasdaq Composite opened lower and were trading 0.8% and 0.9% lower, respectively, at that time.&nbsp;



All signs point to the Fed holding interest rates tomorrow. And probably again in July. Should the Israel-Iran conflict lead to sustained higher oil prices, the FOMC’s timeline for cutting rates could be delayed further.&nbsp;



Speaking of that timeline, we’ll know a lot more tomorrow. The updated dot plot will tell us where committee members see rates ending 2025, plus where they think the unemployment rate, GDP and PCE are headed.&nbsp;



In March, most FOMC members reported expecting interest rates to land at 3.75–4% by the end of 2025. With the current rate being 4.25–4.5%, this means committee members expected two 25 basis point cuts (or one 50bps decrease) by December.&nbsp;



We know that the first few post-Liberation Day inflation data points have come in mild, milder than committee members had expected. Even so, should the market’s expectations for inflation increase, the Fed is going to get concerned. When businesses and consumers expect prices to rise, it’s like a self-fulfilling prophecy.&nbsp;



It’s also worth noting that Chair Powell is probably in his final lap as head of the Fed. His term ends on May 23, 2026, and based on Trump’s past comments, we doubt Powell will be renominated.&nbsp;



There are eight (including this week’s) FOMC meetings between now and Powell’s presumed departure.



Secured overnight financing rate futures, which provide an avenue for investors to bet on the future of monetary policy, suggest that markets envision Powell cutting rates before the end of his term. Trading volumes on June 2026 options contracts have increased in recent months, per CME Group data.&nbsp;



Historically, though, outgoing Fed Chairs tended to spend their final year being more hawkish. Janet Yellen raised rates three times in the last 12 months of her term. Alan Greenspan, whose final year as Chair was in 2005, issued four hikes. Of course, these were during times of stable growth and low inflation.&nbsp;



In Powell’s case, the most hawkish move of all would be to raise rates this year. We (and markets) are all but certain that will not happen. What he might do instead, which would still be fairly hawkish, would be to delay rate cuts. “Higher for longer.”&nbsp;&nbsp;



All that said, should you buy options? I’m not in the business of offering investment advice, so I’ll hold my tongue, mostly.&nbsp;



My advice is to wait until Powell’s press conference tomorrow. We’ll have a better idea of what the Fed Chair is thinking then.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

FOMC preview: What to expect in Powell’s final months

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/thedrop" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Decentralized cloud computing provider io.net, which has its own IO token, is working with the <a href="https://blockworks.co/news/mysten-labs-walrus-decentralized-gaming">Walrus</a> team to let startups train, run and store their own custom AI models.



IO offers a network of GPUs for AI training and fine-tuning, while Walrus is enabling AI model storage in the deal. The integration will be available as a pay-per-use offering, meaning builders are only charged for the amount of storage and computing power they use.&nbsp;



This Bring Your Own Model (<a href="https://www.walrus.xyz/blog/io-net-builds-ai-ml-compute-on-walrus?utm_source=twitter&amp;utm_medium=organic&amp;utm_campaign=walrus">BYOM</a>) offering lets AI agent devs or AI app builders develop and operate AI models without needing to set up their own data centers or hardware to do it.



IO says it has <a href="https://x.com/ionet/status/1933585865852207428">over 10,000 GPUs</a> and CPUs globally.



Walrus and IOo’s BYOM offering will have to compete with other AI developer cloud services, though, like those from Bittensor, Lambda, Spheron, Akash, Gensyn, Vast AI, and Google’s Vertex products.&nbsp;



“Traditional centralized cloud models are not only expensive — they come with significant privacy risks and limited composability options that are challenging for developers who prioritize decentralization,” said Rebecca Simmonds, Managing Executive at Walrus Foundation.&nbsp;



“By leveraging our decentralized data storage solution, io.net will be able to provide the necessary compute power for advanced AI and ML development without any of the drawbacks of traditional models, making this a clear win for developers, users, and the entire Web3 industry,” the exec continued.



The internet can feel very centralized when giant cloud services experience outages, like what <a href="https://status.cloud.google.com/incidents/ow5i3PPK96RduMcb1SsW">happened to Google</a> last week (and impacted <a href="https://blog.cloudflare.com/cloudflare-service-outage-june-12-2025/">Cloudflare</a> as well as a range of other apps and sites). That’s one obvious reason why centralized AI compute might not be ideal.



Walrus’s mainnet launched in March, with its main pitch being programmable, decentralized storage. The Walrus Foundation announced a raise of <a href="https://www.walrus.xyz/blog/walrus-foundation-fundraising">$140 million</a> that month.



More broadly, the need for computing power for AI is expected to keep increasing annually. McKinsey researchers <a href="https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/the-cost-of-compute-a-7-trillion-dollar-race-to-scale-data-centers">predict</a> that data centers are going to need $6.7 trillion globally to keep up with demand by 2030 (though there’s a range of possible scenarios they modeled below).



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdeE3FMjbeJu8JoUEwwOTegZVTaMJz6gbSiu-x-rj5KykoEnoagSm6dJLiBBXEv6KSZcVmu4SdyqiVBWH-xYl7Hh4-X0zfD6nYeQi6GrW3jP4bIdzxMsP5xME1Ibo56cOPkBSUa-w?key=g-Zjg6ACpeSZexUcVepx6g" alt=""/></figure>



AI compute is expected to need $5.2 trillion in investments to keep up with current demand in the next five years, while non-AI IT apps are expected to need much less than that at $1.5 trillion.



Walrus’s AI storage offering with IOo could help the Sui-based storage protocol see more adoption from AI builders and app devs, even from those outside of the crypto space. 



The Walrus mainnet currently has 4,167 TB in total storage capacity, with about 26% of that being used right now. The protocol has <a href="https://walruscan.com/mainnet/home">103 total</a> operators across 121 storage nodes.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

blockchain

Walrus, IO bring GPUs and decentralized storage to AI builders

This is a segment from the 0xResearch newsletter. To read full editions, <a href="https://blockworks.co/newsletter/0xresearch" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



EigenLayer today launched EigenCloud, a developer platform designed to bring crypto-economic trust to any application, whether on- or off-chain. The product debuts alongside a fresh $70 million investment from a16z, bringing the venture firm’s total commitment to over $170 million.



We’ve <a href="https://blockworks.co/news/eigenlayer-restaking-mantle-zksync">previously covered EigenDA</a>, but today’s launch brings two additional service offerings to the fore: EigenVerify and EigenCompute.



The gist is to bring EigenLayer closer toward a full-fledged crypto’s AWS: a verifiability layer for Ethereum that combines off-chain execution with onchain guarantees. The protocol is already stocked with $12 billion in restaked assets, namely ETH. This TVL has, of course, fluctuated in USD terms with the ETH price, but has remained remarkably sticky in ETH terms.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf0bNR-EDg7GQV81XODzJeQCcqkcMN4HLSldZYirUvkiX-UtchyadWWoUriq9vtHK8F06d0Zt7hP5NNkqHmpL31UCbbCZDjI-Ch4tVQiMFkT_yNXx8-AmZLQcC4fr-d7rPlNsx9hA?key=NkCplN3EhAv5Yb7PMKid1Q" alt=""/><figcaption class="wp-element-caption">Source: <a href="https://defillama.com/protocol/eigenlayer?denomination=ETH">DefiLlama</a></figcaption></figure>



EigenCloud promises a new generation of applications across AI, media, gaming and finance, with key features focused on provability: the what-when-why something happened.



For instance:



<ul class="wp-block-list">
<li>AI agents that issue proofs for model inference or decision paths</li>



<li>Oracles and games where disputes are crypto-economically resolvable</li>



<li>Memecoins whose mechanics are enforced by programmable slashing</li>



<li>Media feeds immune to deepfakes or manipulated news</li>
</ul>



In short, any Web2 application that needs trust, but doesn’t need to be its own L1 chain.



<h2 class="wp-block-heading">EigenCloud components</h2>



<ul class="wp-block-list">
<li>EigenDA: A high-throughput data availability layer offering &gt;10 MB/s throughput. Think of it as a turbocharged alternative to Ethereum’s blobspace, ready for rollups and content-heavy workloads.</li>



<li>EigenVerify: A programmable dispute resolution system. Developers can specify fraud or correctness conditions, and violations are punished through slashing.</li>



<li>EigenCompute: Verifiable off-chain compute-as-a-service that abstracts, for instance, node management and links crypto-economic guarantees to general-purpose workflows.</li>
</ul>



Together, these primitives give developers a sort of plug-and-play access to verifiability, piggybacking on Ethereum’s validator infrastructure.



<h2 class="wp-block-heading">The risks</h2>



A compelling vision, to be sure. But it’s also early for practical applications and risks abound.



Much of EigenLayer’s TVL ramp-up was driven by airdrop speculation, and built up before slashing was enabled in April. But capital can flee just as fast as it arrived.



Second, critics (<a href="https://blockworks.co/news/restaking-ticking-time-bomb-eth">including Vitalik Buterin</a>) have warned about restaking contagion, potentially putting Ethereum&#8217;s social consensus between a rock and a hard place. However, EigenCloud’s primitives are secured by a separate operator set distinct from Ethereum’s core validators, so slashing on EigenLayer does not affect Ethereum consensus. Its architecture prevents a single unit of stake from being slashed multiple times across services, with cryptoeconomic guarantees underwritten by the EIGEN token.



Rival Symbiotic’s risk model is a bit different still, with <a href="https://docs.symbiotic.fi/intro/stake/">isolated vaults</a> and per-network slashing parameters. Since each vault operates independently, a failure in one vault does not cascade across all restaked funds.



Third, governance has a relatively big role. With a16z funding both the infrastructure and many of the AVSs it secures, some worry about ecosystem capture.



EigenCloud enters a crowded field, aside from Symbiotic. EigenDA competes with data availability networks like Celestia and Avail, and there are similar compute systems like Gensyn and Akash.&nbsp;



A select group of developers are getting access to EigenCloud today, including Securitize, which will use EigenVerify to validate pricing data for BlackRock’s $2 billion BUIDL fund. Broader access and staking rewards are expected to follow in waves.



The a16z $70 million token purchase sounds impressive, but it has a massive $4.5 billion fund, so it brings its bet to only about 3.7%.



If EigenCloud can execute on its promise, it could finally bridge the gap between Web2 flexibility and Web3 trust. But it still needs to prove that real slashing, decentralized governance and non-DeFi use cases will actually work and scale.



Correction, June 17, 2025 at 3:06 pm ET: Updated the slashing risks section to correctly reflect the current architecture.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

EigenCloud launches aiming to bring verifiability to everything

Katherine Ross

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Five months ago, Gemini and the CFTC <a href="https://www.reuters.com/technology/gemini-agrees-5-mln-fine-injunction-over-cftc-charges-filing-shows-2025-01-06/">agreed to a settlement of $5 million</a> related to a 2022 lawsuit from the CFTC <a href="https://www.cftc.gov/PressRoom/PressReleases/8540-22">alleging</a> that the crypto exchange made false or misleading statements about a bitcoin futures contract it wanted to launch.&nbsp;



Gemini sent a letter via its lawyers to the CFTC’s Inspector General Christopher Skinner alleging that the Division of Enforcement (DOE), which led the suit, didn’t act in good faith.



The 13-page document claims the DOE “was not motivated by a principled application of the law or a desire to protect the commodities markets.”



The letter alleges, instead, that the individuals involved in Gemini’s case sought to go after Gemini in the hopes of gaining a legal win. But Gemini’s not the only one who’s been critical of the DOE recently.&nbsp;



A court sanctioned the <a href="https://blockworks.co/tag/cftc">CFTC</a> back in May in a case led by the regulator against Traders Global Group. This led to acting chairman Caroline Pham <a href="https://www.cftc.gov/PressRoom/PressReleases/9074-25#:~:text=Proactive%20CFTC%20Remediation%20and%20Reform,leverage%20expertise%20and%20reduce%20siloing.">making a public statement</a> about her concerns with the DOE and the efforts she’s since undertaken to reorganize it.&nbsp;



Now <a href="https://blockworks.co/tag/gemini">Gemini</a> is making its own public statement, alleging that DOE staff failed to provide any evidence proving that information was omitted about the bitcoin futures contract.&nbsp;



(The background of this is that an ex-employee, who was terminated, allegedly lied to the CFTC in a whistleblower report that led to this whole suit.)



Its letter directly referenced the case above, noting that the DOE also tried to “downplay its wrongdoing” to the Commission.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe3v2TfAGFG1EBJNW_j6Bu8bQ0Tqu0odJymnZ7eI2JWbwnFVbcUwKVclNfnFTgtEVaxhANjF_havYsxhs0vpczXRWbj-awjBDSYFDtP-aPvkenKv6_J6xMLWnatBQA2jaabXRv17A?key=dn8MjfZEBB2ayQ0bk5_5MA" alt=""/><figcaption class="wp-element-caption">Source: letter from Gemini’s lawyers to Inspector General Skinner</figcaption></figure>



Gemini said it got to the point where it had “no choice” but to agree to the $5 million settlement.



“Gemini Trust did not settle because it did anything wrong…For nearly seven years, the DOE Staff subjected Gemini Trust to abusive investigation and litigation. As detailed above, the DOE Staff took extraordinarily aggressive legal positions and abused special governmental privileges in order to substantially hinder Gemini Trust’s ability to defend itself,” Gemini claims.&nbsp;



It is important to note that while Gemini agreed to a permanent injunction, it did not admit or deny the CFTC’s allegations. However, that is standard in these types of settlements.



You may be wondering why we’re bothering to talk about this, especially since we’re in such a new era. But remember when big players, like Coinbase’s <a href="https://blockworks.co/tag/brian-armstrong">Brian Armstrong</a>, said they wouldn’t hire or interact with firms that brought on ex-SEC enforcement lawyers? This is a similar situation.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">We&#39;ve let all the law firms we work with know, that if they hire anyone who committed these bad deeds in the (soon to be) prior administration, we will no longer be a client of theirs. Senior partners at these law firms seem unaware of the crypto industry&#39;s position on this.… <a href="https://t.co/k8R6NtfTV1">https://t.co/k8R6NtfTV1</a> <a href="https://t.co/RT0k408i9f">pic.twitter.com/RT0k408i9f</a>&mdash; Brian Armstrong (@brian_armstrong) <a href="https://twitter.com/brian_armstrong/status/1863774342267781222?ref_src=twsrc%5Etfw">December 3, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Yes, things look a lot brighter now, but that doesn’t change the past, and in order to move forward, it’s important to acknowledge what happened and get to the bottom of it. Think about Castle Island Ventures’ Nic Carter’s <a href="https://niccarter.info/">push</a> to prove <a href="https://www.coindesk.com/opinion/2024/12/06/proof-of-operation-chokepoint-2-0">Operation Chokepoint 2.0 happened</a>.&nbsp;



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

CFTC

Gemini says it had ‘no choice’ but to settle with CFTC

<h2 class="wp-block-heading">The rise of on-chain private credit</h2>



Institutional investors are increasingly eyeing tokenized private credit as the next frontier in fixed-income. Even BlackRock’s CEO Larry Fink has proclaimed that “every asset… can be tokenized” and that this innovation could “revolutionize investing”​. Private credit – loans to businesses outside traditional bank lending – is at the forefront of this trend. As of early 2025, roughly $12.9 billion worth of private credit has been brought on-chain, making it the largest segment of the tokenized real-asset market (surpassing tokenized treasuries at ~$6.2B)​. Investors are drawn by the promise of efficiency and attractive yields: traditional private credit already yields ~8–12% to compensate for illiquidity​, and newer tokenized deals are often targeting 14%+ annual returns. In a world of tightening spreads, double-digit yields from real-world loans have become a compelling opportunity.



Total tokenized real-world asset value (USD)



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="666" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/06/Screenshot-2025-06-06-at-12.51.00 PM.png?w=1024&amp;h=1024" alt="" class="wp-image-103599" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/06/Screenshot-2025-06-06-at-12.51.00 PM.png?w=1110 1110w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/Screenshot-2025-06-06-at-12.51.00 PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/Screenshot-2025-06-06-at-12.51.00 PM.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/Screenshot-2025-06-06-at-12.51.00 PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/Screenshot-2025-06-06-at-12.51.00 PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/Screenshot-2025-06-06-at-12.51.00 PM.png?w=435 435w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/Screenshot-2025-06-06-at-12.51.00 PM.png?w=365 365w, https://blockworks-co.imgix.net/wp-content/uploads/2025/06/Screenshot-2025-06-06-at-12.51.00 PM.png?w=80 80w" sizes="auto, (max-width: 1110px) 100vw, 1110px" /><figcaption class="wp-element-caption">Total value of tokenized real-world assets on public blockchains, by category (USD). Private credit (blue area) leads the pack as of early 2025​.</figcaption></figure>



<ul class="wp-block-list">
<li><a href="https://debita.io/?utm_source=blockworks">Debita</a> is an on-chain private-credit platform engineered by market-finance experts, delivering alternative financing rails to businesses in emerging economies and aimed at bridging the financing gap for those excluded from capital markets.</li>



<li>US $80 million already placed, inaugural deals yielding 14–20 %, and a pipeline poisedto issue more than US $150 million over the next 12 months. Debita&#8217;s ecosystem includes commercial banks, investment banks, structuring agents and servicers in markets such as Mexico, the Dominican Republic, Panama, Colombia and Argentina. In addition to multilateral and development banks, international credit funds and family offices.</li>
</ul>



“Blockchain has reached the point where it can carry real-world assets with bank-grade controls. By digitising loans or bonds on-chain we settle cash and securities in seconds, 24/7, and even carve them into fractional interests that can trade compliantly. That opens markets once off-limits to a far broader pool of professional capital. We’re standing at the threshold of a US $2 trillion private-credit market that is about to gain liquidity, transparency and fresh funding. In short, this isn’t just back-office efficiency—it’s new yield and true diversification for investors.”



— Julio Ferrón, CEO at <a href="https://neitec.io/?utm_source=blockworks">Neitec</a>



<h2 class="wp-block-heading">The $5 trillion SME funding gap</h2>



Behind the excitement over yields lies a deeper issue: a systemic funding gap for small and medium-sized enterprises (SMEs) in emerging markets. These companies are the engines of job creation and GDP growth, yet they remain chronically underfinanced. According to the International Finance Corporation, the global **SME credit gap is about $5.7 trillion, and it swells to over $8 trillion if you include informal businesses​. In emerging economies, local banks often consider SME loans too risky or costly to underwrite, citing lack of collateral, high due diligence costs, and limited credit data. This leaves millions of viable businesses without affordable credit. The result is a classic market failure.&nbsp;



On one side, small and medium-sized enterprises (SMEs) in developing countries struggle to obtain loans to expand factories, hire workers, or purchase inventory. On the other side, investors worldwide are chasing higher yields but face structural barriers that prevent them from channeling funds to these businesses. This persistent financing gap—between microcredit at one end and large-scale corporate finance at the other—has endured for decades. Bridging this financing gap isn’t just a development goal; it represents an enormous untapped market.&nbsp;



In this sense, our mission is to channel financing that helps businesses grow, strengthens local economies, boosts domestic value creation, and improves people’s lives, because that is what matters: doing our part to advance humanity’s progress.



<h2 class="wp-block-heading">Bridging the divide: Neitec and Debita</h2>



This is why Neitec team, uk- basedfintech founded by a team coming from Barclays, Santander or KPMG, among others, built Debita. Debita offers an integrated platform that unifies the origination, structuring, servicing and placement of private debt for mid-sized companies and fintechs in Latin America—markets where access to capital is scarce and local banks cannot meet demand. By bringing risk assessment, compliance controls, data-room management, servicing and syndication processes together in one environment, we tangibly streamline workflows that were previously scattered across multiple actors.&nbsp;



Thanks to this standardization, issuers can structure their deals efficiently and reach global investors at a lower operating cost.&nbsp;



<h3 class="wp-block-heading">Why stablecoins for B2B crossborder transactions?</h3>



The platform selectively incorporates on-chain rails, collapsing both time and cost in the payment and settlement of private debt. By moving the cash leg and the asset leg onto the same block, we eliminate the usual correspondent-bank waiting period and reduce fees for transfers and FX conversions, allowing transactions to settle in seconds rather than days.This speed not only cuts costs; it also translates into greater working-capital headroom for issuers, as funds freed from traditional banking procedures can be deployed immediately into inventory, payroll, or new projects—reinforcing the growth capacity of SMEs in emerging markets.&nbsp;



<h3 class="wp-block-heading">Extend credit without balance-sheet strain: how banks partner with Debita</h3>



Debita sources transactions through different channels: local structuring boutiques that originate and shepherd deals on the ground; commercial/investment banks that originate new loans and syndicate the risk through the platform instead of keeping it on their own balance sheet; and issuers that come directly to the platform.



Also, this approach allows them to offer new yield-bearing products to private-banking clients—fully managed via the platform—while maintaining visibility over each transaction. By distributing placements beyond local markets, Debita broadens the investor base, enhances risk diversification. Such capabilities are particularly valuable in jurisdictions with evolving financial infrastructures or stricter frameworks, where access to international funding and effective risk-sharing can be crucial to growth.&nbsp;



The result is an ecosystem that provides corporates and fintechs with a more reliable and transparent funding path, spurring productive investment in regions with limited access to capital. By connecting the supply and demand of credit in a single digital flow—including the participation of financial institutions seeking to syndicate or structure transactions—Debita lays the foundations for faster, more global access to capital with the potential for real, sustainable impact on local economies.



<h2 class="wp-block-heading">Why is this a great opportunity for institutional investors?</h2>



Global institutional investors access mid- to high-double-digit yield private credit deals—vetted by local partners and rating agencies—managed within a single platform that delivers real-time, transparent oversight and all the cost and settlement efficiencies of on-chain asset representation. In short, Debita turns fragmented, high-friction emerging-market lending into a single, transparent feed of diversified, high-yield private credit ready for institutional balance sheets.



<h2 class="wp-block-heading">Key Takeaways</h2>



Debita is effectively building the infrastructure for a more inclusive financial system. It takes the best of both worlds: the credibility and rigor of traditional finance, and the efficiency and openness of new technology. This alignment positions Debita. We are seeing large asset managers and banks increasingly experiment in this space, from tokenized funds to blockchain-settled bond issues. Their goal is not just to cut costs, but to expand their investment universe safely.&nbsp;



Imagine billions of dollars flowing from pension funds and sovereign investors in North America, Europe, and the Middle East directly to mid-sized businesses in emerging countries. That kind of capital mobilization could fuel a new era of growth in those economies .



In summary, Neitec’s Debita platform is closing the credit gap by unlocking high-yield private debt in markets that need it most. It demonstrates that tokenization is not just about improving efficiency in mature markets; it’s about innovating for inclusion, bringing new borrowers and lenders together in ways not previously possible.



<h2 class="wp-block-heading">Ready to explore on-chain private credit?</h2>



Request our investor deck or book a 30-minute call with Neitec’s team:



<ul class="wp-block-list">
<li>📧 enquiries@neitec.io</li>



<li>📅 <a href="https://calendly.com/pdelasmatas-neitec/new-meeting?month=2025-06">Schedule a call</a></li>
</ul>



This content is sponsored and does not serve as an endorsement by Blockworks. The veracity of this content has not been verified and should not serve as financial advice. We encourage readers to conduct their own research before making financial decisions.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

FUGFUG

FUG Stats

What is the market cap of FUG?

What is the current trading activity of FUG?

What is the current price of FUG?

How many FUG are there?

What is the relative popularity of FUG?

market data

latest FUG news