Blockonomi

TLDR:

Algorand warns that smart contract vulnerabilities cause immediate, irreversible fund loss with no legal recovery path available.

AI tools may store user data in LocalState, a flawed pattern where ClearState drains critical accounting data permanently.

Algorand recommends using Plan Mode and agent skills to design secure contract architecture before writing a single line of code.

Private keys must stay out of AI reach entirely, with OS-level keyrings handling all transaction signing away from the agent.

Algorand is urging blockchain developers to adopt disciplined, AI-assisted practices before deploying smart contracts to MainNet.

The blockchain platform has drawn a clear line between reckless AI-generated code and responsible agentic engineering.

With AI agents now capable of building and deploying contracts in a single conversation, the stakes have never been higher. Deploying vulnerable smart contracts means immediate, irreversible loss of funds with no path to recovery.

The Risk of Unreviewed AI-Generated Code

Algorand developers have identified a growing problem in the broader web3 space. AI coding tools allow developers to ship products faster, but unchecked code carries serious risk.

Unlike web2 breaches, smart contract vulnerabilities cannot be patched after the fact. Funds drained from a poorly written contract are gone permanently, with no legal recourse available.

The Algorand team shared a concrete example of how AI can mislead developers. An AI might store user balances in LocalState, which appears to be the correct pattern.

However, users can clear local state at any time, and ClearState succeeds even when a program rejects it. This means critical accounting data can disappear without warning. Developers who do not understand the code they ship are exposed to exactly this kind of subtle failure.

Algorand’s developers formalized this concern through a public post from the @algodevs account. The post draws from Addy Osmani’s distinction between “vibe coding” and “agentic engineering.”

Shipping with AI? Read this first.

From vibe coding to agentic engineering, here’s how to build secure dApps on Algorand https://t.co/TgP0LBuTjl

— Algorand Developers (@algodevs) February 21, 2026

Vibe coding means accepting all AI output without review. Agentic engineering means the developer remains the architect and final decision-maker throughout the process.

The platform advises developers to use BoxMap instead of LocalState for data that cannot be lost. This kind of nuance is what separates a working contract from a broken one.

AI tools trained on outdated patterns will not flag these issues automatically. Developers must bring their own understanding to every deployment.

How Algorand Recommends Building Safely With AI

Algorand outlines several practices to keep AI-assisted development secure and maintainable. Developers should use Plan Mode before writing any code, allowing the agent to design architecture first.

This produces a spec covering state schema, method signatures, and access control. Reviewing this plan catches design flaws before any implementation begins.

Agent skills play a major role in guiding AI toward correct Algorand patterns. These are curated instructions that encode current best practices directly into the development workflow.

Without them, AI is likely to use deprecated APIs or outdated patterns. Structured prompts reduce hallucinations and produce more reliable contract code.

Private keys must remain completely out of reach of AI agents at all times. Tools like VibeKit use OS-level keyrings so that AI requests transactions without ever accessing signing credentials.

Additionally, developers should use algokit task analyze and simulate calls to catch edge cases. Testing should mirror how an attacker would approach the contract, not just how a user would.

The post Algorand Warns Developers Against “Vibe Coding” Smart Contracts to MainNet appeared first on Blockonomi.

TLDR:

Bitcoin’s capitulation hits critical levels with $643M in realized losses and 46.08% of supply underwater.

Short-term holders with SOPR at 0.98 and MVRV at 0.73 are systematically selling BTC below entry price.

Medium whales offloaded 91,580 BTC in 30 days while the Whale Ratio climbed to a telling 74% reading.

Bitcoin ETFs recorded $404M in outflows Feb 17–19 as miners and retail quietly accumulated the sold supply.

Who is behind the selling pressure currently gripping the Bitcoin market? On-chain data now points to three specific groups driving the capitulation.

A total of $643 million in realized losses has been recorded, with 46.08% of the Bitcoin supply sitting underwater. The evidence is clear, this is not a broad market selloff.

Identifiable cohorts are responsible, and their behavior is trackable through on-chain metrics.

Short-Term Holders Are the Primary Source of Panic Selling

Short-term holders (STHs) sit at the center of the current capitulation. These are buyers who entered the market within the last six months, largely near cycle highs.

The STH-SOPR reading of 0.98 confirms they are selling consistently below their purchase price. Every transaction below 1.0 on this metric represents a realized loss being locked in by this group.

The STH-MVRV ratio adds further weight to this picture, currently reading at 0.73. That number reflects a cohort that is deeply underwater and actively exiting positions.

Rather than holding through the drawdown, these participants are choosing to sell at a loss. Their collective behavior is one of the clearest signs of active capitulation in the current cycle.

GugaOnChain’s on-chain analysis confirms that STH behavior is systematic, not isolated. The losses are being realized repeatedly across multiple sessions, not in a single spike.

This pattern suggests that fear, not strategy, is driving their exit decisions. It is the textbook behavior of speculative participants caught on the wrong side of the market.

Beyond the metrics, the timing of their entries matters here. Buyers from the last six months purchased Bitcoin when sentiment was elevated and prices were near local highs.

They are now facing significant paper losses that many are unwilling to hold through. That psychological pressure is directly translating into consistent sell-side volume on exchanges.

Medium Whales and ETF Institutions Are Amplifying the Pressure

Medium whales holding between 1,000 and 10,000 BTC have offloaded 91,580 BTC over the past 30 days. This is the most aggressive distribution coming from any single cohort in the current period.

Whales holding above 10,000 BTC have also reduced exposure by 22,280 BTC during the same window. Together, these two groups represent a coordinated and large-scale exit from the market.

The Whale Ratio currently sits at 74%, reinforcing that large players are routing significant volume toward exchanges.

This metric measures large transactions as a share of total exchange inflows. A reading this elevated has historically preceded continued downward price movement. It confirms that whale distribution is active and ongoing, not yet exhausted.

Institutional Bitcoin ETFs recorded $404 million in net outflows between February 17 and 19, 2026. These outflows directly translate into spot market selling pressure from regulated vehicles.

Institutions reducing exposure during periods of stress add a layer of selling that retail markets struggle to absorb. Their exit compounds the pressure already created by STHs and medium whales.

While these three groups lead the capitulation, a separate set of participants is moving in the opposite direction. Miners, small whales, and retail buyers are steadily accumulating the supply being offloaded.

This dynamic; where distressed sellers transfer coins to patient accumulators: is a recurring feature of Bitcoin’s correction phases. The identity of the sellers is now clear, and so is the identity of those stepping in to buy.

The post Who Is Behind Bitcoin’s Selling Pressure? On-Chain Data Exposes the Groups Leading Capitulation appeared first on Blockonomi.

TLDR:

Bitcoin has recovered to a new all-time high after every 40–50% correction recorded between 2014 and 2026.

The average trough-to-cycle-high multiple across nine correction events sits at approximately 3.4 times the low.

Recovery time within this correction range averages 9 to 14 months, far shorter than full bear market timelines.

Bitcoin’s maximum drawdown severity has declined each cycle, dropping from 84% in 2018 to roughly 50% today.

Bitcoin’s historical price behavior shows a consistent pattern that long-term analysts have tracked for over a decade.

When the asset drops between 40% and 50% from a cycle peak, it has recovered to new all-time highs in every recorded instance since 2014.

As of February 21, 2026, Bitcoin trades near $67,707, down roughly 47–50% from its October 2025 peak of $124,700. That places the current drawdown squarely within this historically notable correction range.

What Defines a 40–50% Correction in Bitcoin’s Cycle

A 40–50% correction refers to a drawdown from a running cycle peak to its lowest trough, with the maximum decline falling between those two percentages.

The peak is measured as the running high before a new high is set. The trough marks the deepest point of the pullback before recovery begins.

According to an analysis by market commentator Adam Livingston, the dataset covers daily Bitcoin price history from 2014 through February 20, 2026.

It identifies roughly nine distinct events fitting this correction definition. Only closed events count, meaning the drawdown period ends only when a new all-time high is confirmed.

This definition deliberately excludes deeper bear market crashes, where losses exceed 70%. Those recoveries typically take much longer. The 40–50% bucket behaves differently, and the data treats it as a separate category of market behavior.

Key Data Points From Nine Historical Events

The average multiple from the correction trough to the next cycle high sits at approximately 3.4 times. The range across all events runs from roughly 1.8 times on the lower end to 5.6 times at the top. That range reflects how different each recovery can be in magnitude.

Livingston noted that even the one event that eventually rolled into a deeper bear market still produced a roughly 116% gain and reached a new all-time high just after the 365-day mark.

As he wrote, “Even the ‘bad’ one still embarrassed the skeptics.” That recovery happened despite the correction preceding an extended downturn.

Average recovery time to a prior high within this correction range runs approximately 9 to 14 months. Full bear markets, by comparison, have historically taken 24 to 36 months or longer to recover. That represents a notably faster timeline for this specific correction bucket.

The Current Setup and What History Suggests

As of February 21, 2026, Bitcoin sits around $67,707. The October 2025 peak reached $124,700, placing the current drawdown at approximately 47–50%. That range matches the textbook entry zone identified across the historical dataset.

Livingston also pointed out that Bitcoin has shown early rebound behavior, trading roughly 8% above its February 5 low.

Historically, these initial snapbacks tend to follow a period where forced selling exhausts itself and selling pressure drops. The pattern repeats across multiple cycles in the data.

Beyond the current setup, the analysis also noted that maximum drawdown severity has decreased over successive cycles. The 2018 bear market saw drawdowns near 84%.

The 2022 cycle reached around 77%. The current cycle’s largest drawdown sits near 50%, which suggests growing market depth and stronger structural demand over time.

The post Is Bitcoin’s Current 47–50% Drawdown the Same Pattern That Has Always Led to New All-Time Highs? appeared first on Blockonomi.

TLDR:

STRC faces a major tailwind as U.S. money market funds lose $233.7 billion annually from a projected 300bps rate drop

STRC pays 11.25% annually with $2.25 billion in cash reserves covering over 2.5 years of dividends at 5.6x overcollateralization

A 0.5% rotation from money markets into STRC could generate $2–$4 billion, funding the purchase of up to 80,000 Bitcoin

Strategy’s Bitcoin holdings could grow 13%–34% if STRC scales to $10–$20 billion in notional value by the year 2028

STRC, Strategy’s Variable Rate Series A Perpetual Preferred Stock, is drawing growing institutional attention as the Federal Reserve advances its rate-cutting cycle into 2026.

U.S. money market funds now hold $7.79 trillion, currently yielding between 4.5% and 5%. Analysts project yields on those funds could fall by 300 basis points.

That drop could push hundreds of billions toward high-yield alternatives. Trading near $100 par on Nasdaq and paying 11.25% annually, STRC stands positioned at that crossroads.

Fed Rate Cuts Threaten Hundreds of Billions in Annual Income

U.S. money market fund yields remain elevated from the prior rate-hiking cycle. However, the Fed has already moved 125 basis points into the current easing cycle, with markets pricing in another 75–100 basis points ahead.

Analysts expect front-end yields to compress toward 1%–2%, replicating the post-2008 and 2020 patterns.

A 300-basis-point decline across $7.79 trillion in money market assets equals roughly $233.7 billion in lost annual income.

Pensions, insurers, and corporate treasuries cannot simply absorb that loss. They are historically known to pursue higher-yielding alternatives when safe returns erode.

EPFR and McKinsey data indicate that for every 100-basis-point drop in short-term rates, alternative and high-yield vehicles see 10%–20% accelerated inflows within 12–18 months.

A 5%–10% rotation out of money markets alone could direct $390–$780 billion toward private credit, listed preferred stocks, and similar instruments.

STRC Positioned to Capture Institutional Yield Demand

STRC currently trades at $99.82 with an effective annual yield of 11.27%, paying dividends every month. Its notional value already stands at $3.458 billion. Average daily trading volume runs at approximately $128 million, reflecting growing market participation.

Analyst Adam Livingston wrote on X: “STRC sits at the perfect nexus because it’s liquid, high-yield, and structurally engineered to vacuum up the dumbest, most desperate money on Earth.”

He added that Strategy holds $2.25 billion in cash reserves, covering more than 2.5 years of dividends at 5.6 times overcollateralization.

A TRILLION DOLLAR YIELD TSUNAMI IS COMING STRAIGHT FOR BITCOIN

The Fed is revving up the rate-cut guillotine again.

We're already 125bps into the current easing cycle as of early 2026, with the street pricing in another 75-100bps of bloodletting to get the funds rate down… pic.twitter.com/gRKzPPA3mp

— Adam Livingston (@AdamBLiv) February 21, 2026

If only 0.5% of projected capital rotation flows into STRC, that equals $2–$4 billion in new capital. At $100 par, that creates 20–40 million new shares issued. Proceeds from those shares go directly toward Strategy’s Bitcoin acquisition program.

Bitcoin Supply Could Face Pressure from STRC’s Expansion

Each $1 billion raised through STRC issuance allows Strategy to purchase approximately 14,700 Bitcoin at a $68,000 spot price.

A $4 billion capital inflow translates to roughly 58,800–80,000 additional Bitcoin removed from the open market.

Strategy currently holds 717,000 BTC. Analysts project STRC could scale to $10–$20 billion in notional value by 2028.

That growth range would add an estimated 95,000–242,000 Bitcoin to Strategy’s treasury, a 13%–34% increase in total holdings.

That accumulated buying would represent 8%–11% of annual Bitcoin issuance. Livingston noted: “Do that at scale and you’re talking supply-shock math that makes ETF inflows look quaint.”

Post-GFC private credit grew more than seven times as rate cuts redirected capital toward yield-bearing alternatives, and Bitcoin compounded sharply during each of those liquidity-driven periods.

The post STRC Yield Play: How Fed Rate Cuts Could Drive Billions Into Strategy’s Bitcoin Machine appeared first on Blockonomi.

TLDR:

Vitalik Buterin argues AI used correctly can empower democratic governance rather than centralize control over it.

Personal AI agents could vote on a user’s behalf by learning from their writing, history, and stated preferences.

Public conversation tools can aggregate views across many participants before asking them to weigh in on decisions.

Multi-party computation allows private governance decisions without exposing sensitive data to any single participant.

AI governance is at the center of a fresh discussion sparked by Ethereum co-founder Vitalik Buterin. He argues that AI, when applied correctly, can push democratic and decentralized governance forward rather than replace it.

His post addresses a long-standing problem: most people lack the time to participate meaningfully in governance decisions.

With thousands of choices across many domains, the current model of delegation concentrates power in too few hands.

Personal AI Agents Could Reshape How People Vote

Buterin proposes using personal large language models to handle the attention problem in decentralized governance.

A personal governance agent could cast votes on a user’s behalf by studying their writing, conversations, and stated preferences. This approach keeps individuals connected to decision-making without requiring constant attention.

When an agent is unsure how a person would vote on a given issue, it would pause and ask them directly. It would also provide all relevant context before prompting any response. This design avoids blind delegation and keeps the individual informed on matters that count.

The model differs sharply from current delegation systems, where supporters often lose influence after pressing a single button.

A personal agent maintains ongoing alignment with the user’s values. It acts as a filter rather than a replacement for human judgment.

Public Conversation Tools Can Aggregate Views More Accurately

Buterin also raises concerns about how collective decisions are currently formed. Simply averaging people’s views based on their own limited information does not produce well-informed outcomes.

"AI becomes the government" is dystopian: it leads to slop when AI is weak, and is doom-maximizing once AI becomes strong. But AI used well can be empowering, and push the frontier of democratic / decentralized modes of governance.

The core problem with democratic /…

— vitalik.eth (@VitalikButerin) February 21, 2026

A better process would gather and combine information across many participants before asking them to respond.

He points to tools like LLM-enhanced versions of pol.is as one direction worth pursuing. These systems summarize what people have in common based on their actual words. They can surface shared ground that might otherwise stay hidden in large groups.

Additionally, a public conversation agent could translate a person’s views into a shareable format without exposing private details.

This makes broader participation possible without forcing individuals to be publicly identifiable. Anonymity tools using zero-knowledge proofs could support this further.

Multi-Party Computation Addresses Private Decision-Making

One major weakness of democratic governance is its struggle with confidential information. Negotiations, internal disputes, and compensation decisions often require secrecy that open voting cannot provide. Buterin suggests multi-party computation as a technical solution to this tension.

Under this model, a participant’s personal LLM would enter a secure environment, review private data, and output only a judgment.

Neither the participant nor anyone else would see the private information itself. Trusted Execution Environments, or TEEs, have already demonstrated this approach in practice.

Buterin also calls for greater use of garbled circuits to achieve pure cryptographic security in at least two-party cases.

Privacy, he notes, must cover both participant anonymity and the contents of their inputs. Zero-knowledge proofs and multi-party techniques together form the foundation he envisions for this system.

The post Vitalik Buterin Outlines How AI Could Strengthen Decentralized Governance appeared first on Blockonomi.

TLDR:

The SEC reduced the stablecoin capital haircut from 100% to 2%, in line with money market fund treatment. 

Broker-dealers previously needed $2 million in capital reserves just to hold $1 million in stablecoins. 

The rule change allows regulated firms to use stablecoins for settlement, collateral, and tokenized assets. 

Lower capital requirements are expected to drive broader institutional demand and stablecoin adoption in 2026.

Stablecoins have cleared a major regulatory hurdle in 2026. The U.S. Securities and Exchange Commission revised capital treatment rules for broker-dealers holding stablecoins.

Previously, firms faced a 100% haircut on stablecoin holdings, making institutional use prohibitively costly. The SEC now aligns stablecoin treatment with money market funds at a 2% haircut.

This change removes a long-standing barrier for regulated institutions looking to adopt stablecoins in daily operations.

SEC Cuts Capital Burden on Broker-Dealers

Under the old framework, broker-dealers faced a steep capital penalty for holding stablecoins. A 100% haircut meant every dollar in stablecoins required an equal dollar set aside.

A firm holding $1 million in stablecoins effectively locked up $2 million in balance sheet capacity. That structure made stablecoins costly and unattractive for regulated financial institutions.

This arrangement gave Wall Street little reason to integrate stablecoins into daily operations. The capital cost far outweighed any operational benefit stablecoins could realistically offer.

Consequently, traditional finance largely stayed away from stablecoin use under these rules. Regulated broker-dealers could not incorporate them without visibly straining their capital ratios.

Crypto market commentary account Bull Theory addressed the change directly in a post. “The SEC has changed the rules, which forced Wall Street to need $2 million in capital to hold $1 million in stablecoins,” the account stated.

CRYPTO MARKET JUST SECURED ITS BIGGEST WIN OF 2026

The SEC has changed the rules, which forced Wall Street to need $2 million in capital to hold $1 million in stablecoins.

TradFi broker dealers must follow capital rules. When they hold an asset, they must set aside capital… pic.twitter.com/cfTt751EAA

— Bull Theory (@BullTheoryio) February 21, 2026

The revised haircut now stands at 2%, consistent with money market fund treatment. Firms now set aside only a small buffer rather than freezing the full amount.

This correction makes stablecoins balance sheet friendly for the first time under U.S. regulatory rules. Broker-dealers can now hold stablecoins without straining their capital positions or compliance standings.

The change applies broadly across regulated institutions operating in traditional finance. It stands as one of the most practical regulatory adjustments for crypto in 2026.

Stablecoin Integration Into Traditional Finance Now More Viable

With the capital burden reduced, broker-dealers can bring stablecoins into everyday institutional workflows. Settlement, collateral transfers, and tokenized treasury transactions all become accessible for regulated firms.

These are standard financial functions that previously excluded stablecoin participation entirely. The revised rule opens those operational pathways directly to Wall Street.

Stablecoins have long served as the bridge between traditional finance and crypto markets. That bridge becomes far more functional when institutions can cross it without a capital penalty.

Greater institutional participation strengthens stablecoins as core financial infrastructure over time. Demand grows as more firms incorporate stablecoins into routine operations.

More demand for stablecoins also supports broader crypto market activity going forward. Settlement becomes more efficient when institutions move stablecoins freely across platforms.

On-chain transactions grow more practical for regulated entities operating at meaningful scale. The crypto market gains a more reliable and institutional-grade liquidity layer as adoption expands.

This regulatory shift did not expand the risk profile of crypto for institutions. Rather, it corrected a disproportionate treatment inconsistent with comparable low-risk financial instruments.

Stablecoins backed by short-term assets were previously treated far more harshly than similar products. The 2% haircut now aligns regulatory treatment with the actual financial risk stablecoins carry.

The post Stablecoins Clear Major Regulatory Barrier as SEC Revises Capital Rules appeared first on Blockonomi.

TLDR:

RWA integration reaches a new level as BlackRock’s $2.4B BUIDL fund goes live on UniswapX for 24/7 trading

Apollo Global Management is authorized to acquire up to 90M MORPHO tokens over 48 months.

MORPHO token surged 17.8% after Apollo’s formal cooperation agreement was publicly announced.

Wall Street’s governance token purchases signal a major shift in institutional DeFi confidence.

RWA momentum reached a new milestone this week as BlackRock and Apollo Global Management moved beyond pilot programs into deep infrastructure integration.

BlackRock connected its tokenized fund to Uniswap’s trading rails, while Apollo signed a formal agreement with Morpho’s lending protocol.

Together, these moves mark a structural shift in how traditional asset managers are engaging with decentralized finance. Wall Street is no longer testing the waters; it is now actively building within them.

BlackRock Plugs BUIDL Into Uniswap’s Trading Infrastructure

BlackRock partnered with Securitize and Uniswap Labs to integrate its BUIDL fund into the UniswapX system. The fund currently holds approximately $2.4 billion in assets under management. Eligible institutional investors can now trade BUIDL against USDC around the clock, seven days a week.

Notably, the integration bypasses traditional AMM liquidity pools entirely. Instead, it uses UniswapX’s off-chain order routing system, which settles transactions on-chain.

Orders flow through a Request-for-Quote framework to whitelisted market makers, including Wintermute and Flowdesk, acting as solvers.

Sentora’s newsletter captured the weight of the moment, noting that “the era of testing is over,” and that Wall Street is now “actively utilizing decentralized protocols to trade and lend” tokenized assets.

RWA momentum continued as two of the world’s largest traditional asset managers, BlackRock and Apollo Global Management, moved to deep infrastructure integration.

We break it down in our latest newsletterhttps://t.co/ZLRaKbNfEM

— Sentora (@SentoraHQ) February 21, 2026

Securitize handles compliance by pre-qualifying all participating wallets. This structure keeps institutional capital separate from non-KYC retail pools.

Beyond the technical setup, BlackRock also purchased an undisclosed amount of UNI governance tokens, marking its first direct financial engagement with a DeFi protocol’s governance structure.

Apollo Enters Decentralized Credit Through Morpho Agreement

Apollo Global Management, which oversees $940 billion in traditional assets, signed a formal cooperation agreement with Morpho.

The deal centers on building and scaling on-chain lending markets using Morpho’s infrastructure. Apollo and its affiliates are authorized to acquire up to 90 million MORPHO tokens over the next 48 months.

Sentora  framed the broader trend clearly, stating that these institutions are “natively plugging tokenized assets into Uniswap’s liquidity rails and Morpho’s lending markets.”

The MORPHO token rallied 17.8% in the week following the announcement, according to CoinGecko data. Apollo’s acquisition strategy combines open-market purchases with over-the-counter transactions, with strict ownership caps and transfer restrictions built into the agreement.

Morpho’s architecture suits institutional needs because it allows permissionless market creation. Apollo can launch isolated lending pairs and custom vaults without waiting for a DAO governance vote.

This flexibility lets large managers set their own collateral ratios and interest rate parameters within a controlled environment.

Wall Street’s Growing Appetite for DeFi Governance Tokens

The RWA narrative is evolving beyond asset tokenization into active protocol ownership. Both BlackRock and Apollo are now acquiring governance tokens, a practice that traditional institutions previously avoided due to regulatory concerns.

As Sentora analyst Gabriel Halm put it, these firms view governance tokens as “essential infrastructure stakes,  analogous to holding equity in a clearinghouse or a traditional exchange network.”

This shift also reflects a broader efficiency argument. Traditional markets carry T+1 or T+2 settlement delays and fragmented liquidity.

Halm noted that by “plugging tokenized Treasuries into decentralized routing and building structured credit on permissionless rails, institutions are actively upgrading their operational efficiency.”

These advantages are increasingly difficult for institutional managers to overlook as competition for yield tightens.

Meanwhile, the broader DeFi market shows mixed conditions. TVL and token supply remain flat, and leveraged ETH restaking strategies have moved into negative carry territory.

The debt-weighted average cost of borrowing ETH now sits at 3.40%, exceeding yields across all major liquid staking and restaking protocols tracked as of February 20, 2026.

The post RWA Goes Mainstream: BlackRock and Apollo Plug Billions Into Uniswap and Morpho Protocols appeared first on Blockonomi.

TLDR:

Bitcoin’s cycle bottoms have grown shallower each time, falling from -92.7% in 2011 to -68.5% in 2022.

BTC is currently 47% below its October 2025 ATH of $126K, with Fear and Greed at single digits.

Green drawdown days near all-time highs are growing faster than red days for the first time in Bitcoin’s history.

Comparing the 2025 selloff to 2018 may be the wrong framework, as structural data points to a maturing asset.

The latest Bitcoin selloff has renewed fears of a prolonged bear market, but historical drawdown data suggests this cycle may not follow the same path as those before it.

Bitcoin currently trades roughly 47% below its October 2025 all-time high of $126,000. Fear and Greed readings sit at single digits.

Yet 15 years of drawdown data, when mapped against the present, paints a different picture from what many traders are expecting.

Past Cycles Carried Far Deeper and Longer Drawdowns

In 2011, Bitcoin collapsed 92.7% from its peak. Nearly every day of its young existence was spent deep in drawdown territory.

The 2013–2015 cycle followed with a 72% decline, adding over 1,500 days of brutal losses to the historical record.

By 2017, Bitcoin had logged more than 2,500 drawdown days, and red still dominated the distribution chart. The 2018 bear market then pushed losses to 78.4%, reinforcing the same deep correction band between -60% and -80%. Those cycles defined what analyst Sminston With described as “the old Bitcoin.”

Bitcoin is down ~47% from its October 2025 ATH of $126K. Fear & Greed at single digits. "BTC to zero” Google searches at 5-year highs. ETF outflows mounting. People are calling for $40K, even $25K.

So I animated 15 years of drawdown data to put this moment in context.
– – -… pic.twitter.com/9Ar8FHFZVx

— Sminston With (@sminston_with) February 20, 2026

The critical pattern across all those cycles, however, is one of gradual improvement. Each successive bottom came in shallower than the one before it.

The sequence runs as follows: -92.7%, -87%, -84%, -77%, and then -68.5% in 2022. That consistent upward shift in the floor is not coincidental.

The current selloff, sitting at approximately -47%, has not yet approached any of those prior cycle bottoms. That alone separates this moment from what traders experienced in 2018 or 2015, even if sentiment feels comparable.

Structural Shifts in How Bitcoin Spends Its Time

After the 2021 bull cycle, a measurable change appeared in the drawdown distribution. Green bars, representing days spent within 0% to -15% of an all-time high, began growing at a faster rate than any prior period. Bitcoin was simply spending more time near its highs than it ever had before.

Sminston With noted that “green-white oscillations are replacing the deep red plunges,” referring to the shift away from the severe, prolonged corrections that once dominated Bitcoin’s history.

The transition zone between -15% and -35% has also grown, with Bitcoin spending close to 90 days there following the October 2025 peak.

This does not mean further downside is impossible. Some market participants are still calling for $40,000 or even $25,000.

However, the data shows that Bitcoin’s worst drawdowns have been getting structurally shallower, cycle after cycle, and the time spent near all-time highs has been growing.

The question the data raises is straightforward. If each cycle bottom has come in less severe than the last, and if Bitcoin is spending more time in the green regime than ever before, then comparing 2025 to 2018 may simply be the wrong framework for this moment.

 

The post Why Bitcoin’s 47% Drop From $126K Is Not the Crisis It Appears to Be appeared first on Blockonomi.

TLDR:

MARA France completed a 64% majority acquisition of Exaion after securing all required regulatory approvals. 

NJJ Capital acquired a 10% stake in MARA France, strengthening the deal’s local French investment structure. 

Fred Thiel and Xavier Niel will both serve on Exaion’s board, representing key stakeholders across the partnership. 

The three-way deal aims to position Exaion as a leading European player in secure cloud and HPC services.

MARA Holdings has completed its acquisition of a 64% majority stake in Exaion, a French high-performance computing firm.

EDF Pulse Ventures, the investment arm of EDF Group, partnered with MARA and NJJ Capital to support this deal.

The transaction, initially agreed upon on August 11, 2025, received all required regulatory approvals before closing. EDF Group continues as both a minority shareholder and a customer of the company.

MARA and EDF Pulse Ventures Formalize a Strategic Alliance

Through this agreement, MARA France completed the acquisition after fulfilling all conditions precedent. The deal marks a notable step for MARA beyond its core Bitcoin mining operations.

Exaion develops and operates high-performance computing data centers based in France. The company also provides secure cloud services and artificial intelligence infrastructure to its clients.

Fred Thiel, Chairman and CEO of MARA, addressed the partnership’s broader purpose at the time of the initial announcement. “Our partnership with Exaion would bring together two global leaders in data center development and digital energy,” Thiel said.

“As data protection and energy efficiency become top priorities for both governments and enterprises, MARA and Exaion’s combined expertise would enable us to deliver secure and scalable cloud solutions built for the future of AI.” His statement laid out the strategic vision that drove the months-long approval process.

As part of the transaction, NJJ Capital acquired a 10% stake in MARA France. NJJ Capital is a holding company closely associated with French billionaire Xavier Niel.

This stake positions NJJ as a key strategic partner alongside MARA in the French market. The arrangement also brought additional regulatory confidence, as France required a local investor to participate before granting its approval.

Exaion’s Board of Directors will reflect the new ownership structure going forward. MARA Inc will appoint three representatives, EDF Pulse Ventures will appoint three, and NJJ will appoint one, with Exaion’s CEO and co-founder also holding a seat.

Xavier Niel and Fred Thiel will both serve on the board. This governance model ensures every major stakeholder has a direct voice in Exaion’s direction.

Exaion Eyes European Leadership in Digital Infrastructure

The core aim of this three-way partnership is to accelerate Exaion’s expansion across Europe. MARA, EDF, and NJJ together plan to strengthen Exaion’s capabilities in HPC and secure cloud services.

The partnership is specifically designed to position Exaion as a European leader in digital infrastructure. This goal has been central to all three partners since the deal was first structured.

Julien Villeret, Head of Innovation at EDF Group, commented on EDF’s role in enabling this transition. “Since its creation in 2020, EDF Pulse Ventures has supported Exaion’s growth and the development of its cutting-edge digital technologies,” Villeret said.

“This transaction would mark a new chapter, as Exaion would join forces with a seasoned global tech partner, while maintaining a collaborative relationship with the EDF Group.” He further described it as a major opportunity for Exaion to accelerate its international development.

The deal also carried strong backing from the French government. France’s Finance Minister Roland Lescure described the deal as a confirmation of the country’s ability to attract international capital without relinquishing control over its strategic assets, noting that the agreement guarantees the protection of national interests and technological sovereignty.

His remarks reflected France’s careful approach to approving the foreign acquisition.

MARA’s move into AI data centers reflects a broader trend among crypto mining companies. Bitcoin miners have been redirecting computational resources toward AI and HPC workloads.

This transition allows companies to diversify revenue beyond cryptocurrency market cycles. The MARA-Exaion deal fits directly within that wider industry pattern, combining energy expertise, digital infrastructure, and computing capacity under one strategic alliance.

The post MARA Holdings Secures 64% Stake in Exaion to Drive European AI Data Center Growth appeared first on Blockonomi.

TLDR:

Wintermute CEO Evgeny Gaevoy says crypto is now driven by a “number go up” mindset over cypherpunk values.

Gaevoy argues stablecoins reinforce U.S. dollar dominance rather than building a truly decentralized financial system.

Despite Ethereum’s $120B+ in TVL, Gaevoy says most of it is “stuck money” with little real-world application use.

Gaevoy warns that deeper TradFi integration could permanently erase the original cypherpunk dream of decentralized finance.

Cypherpunk ideals once drove the creation of Bitcoin and decentralized finance. However, Wintermute founder and CEO Evgeny Gaevoy believes the industry has moved far from those origins.

Speaking on Fortune’s Crypto Playbook podcast, Gaevoy argued that crypto has been consumed by a “number go up” mindset.

He also raised concerns about stablecoins reinforcing dollar dominance and the limited real-world adoption of decentralized applications, even as blockchain valuations remain high.

The Shift Away From Decentralization

Gaevoy expressed concern about how the crypto industry has repositioned itself over recent years. Rather than building systems that operate outside traditional finance, many projects now align closely with Wall Street structures.

This shift, he said, runs counter to Bitcoin’s founding philosophy as a libertarian, government-independent currency.

Earlier in February, Gaevoy shared his views in a viral thread on X. He argued that despite pro-blockchain government sentiment and institutional adoption, the core mission of crypto has been overshadowed.

The industry, in his view, is now driven more by price speculation than by meaningful technological purpose.

Stablecoins have become one of the most widely used products in crypto. However, Gaevoy pointed out that their growth comes with a contradiction.

“We were supposed to build something parallel to the dollar,” he said on the podcast, “but now we are actually imposing the dollar on the rest of the world.” That framing challenges the widely held view that stablecoin expansion equals genuine crypto progress.

For Gaevoy, this represents a fundamental conflict in values. The industry set out to create an alternative financial system, but has instead become a channel for extending existing monetary dominance. Rather than replacing the dollar-based order, crypto has largely reinforced it.

Limited Adoption Despite High Valuations

The debate between Ethereum and Solana often dominates crypto conversations. Gaevoy, however, believes this misses a larger issue: neither blockchain has achieved genuine decentralized application adoption.

Despite Ethereum holding over $120 billion in total value locked, according to CoinMarketCap, Gaevoy described much of it plainly. “It’s stuck money,” he said, pushing back against the idea that high TVL figures reflect real economic activity.

Corporate pilots placing bonds or cash markets on blockchains have attracted significant media attention. Yet Gaevoy cautioned against reading too much into them.

“People quite overestimate those pilots by corporations to put some bonds on blockchains or some cash markets on blockchains,” he said. These efforts, he added, remain a tiny fraction of what happens in traditional finance daily.

Wintermute itself works across centralized and decentralized exchanges rather than committing to one direction. This positions the firm to operate at multiple levels of integration with traditional finance.

Still, Gaevoy maintains that the ideal future involves returning to cypherpunk principles rather than a deeper merger with Wall Street.

“Everyone is cheering for this merger with TradFi,” Gaevoy said. “But nobody understands that it will basically just cancel out the cypherpunk dream altogether.”

He remains confident the tide will turn. “My bet is this pendulum will swing back again when people realize there is a benefit to this crazy blockchain stuff, and it’s not just memecoins,” he added.

The post “Number Go Up” Culture Is Killing Crypto’s Cypherpunk Dream, Wintermute CEO Warns appeared first on Blockonomi.

TLDR:

Aptos slashed staking rewards from 5.19% to 2.6%, cutting sell pressure on APT nearly in half immediately.

The Aptos Foundation locked 210 million APT, removing roughly 18% of the total circulating supply from the market.

Programmatic buybacks and a 32 million APT annual burn were introduced to create consistent token demand.

Despite strong tokenomics reforms, the APT price saw no reaction due to weak retail interest and no clear narrative.

APT, the native token of the Aptos blockchain, recently received a major tokenomics upgrade. The changes addressed long-standing structural concerns around inflation and supply pressure.

However, the price showed little reaction following the announcement. Analysts point to a deeper problem rooted in weakened market confidence.

The fixes may improve the foundation, but demand has not followed. The central question now is whether these reforms came too late to matter this cycle.

What the Aptos Tokenomics Upgrade Actually Changed

Aptos cut staking rewards nearly in half, dropping from 5.19% to 2.6%. This move directly reduces the selling pressure that had weighed on APT for months.

The Aptos Foundation also locked 210 million APT, removing roughly 18% of the circulating supply. A hard cap of 2.1 billion tokens was also clarified for the market.

Beyond supply controls, the project introduced programmatic buybacks and a projected annual burn of 32 million APT. Grant issuance was shifted to a performance-based model, tightening how new tokens enter circulation.

Together, these changes represent a meaningful pivot in how the project manages its token economy. On paper, the reforms are serious and directly responsive to earlier criticism.

Crypto analyst account @ourcryptotalk noted the changes address structural issues it raised two months prior. The account stated that emissions cut nearly in half immediately reduces selling pressure.

$APT fixed tokenomics but the price didn’t react.

And that’s the real story.

2 months ago, we said Aptos had a structural token problem.

Now they’ve responded.

So the real question is not “Did they improve it?”

It’s:

Is it too late for @Aptos ?

> WHAT THEY ACTUALLY FIXED… https://t.co/0UO1hR13Om pic.twitter.com/p6mA6CmT7y

— Our Crypto Talk (@ourcryptotalk) February 21, 2026

It also noted the foundation lock removes roughly 18% of the circulating supply permanently. Buybacks, it added, create systematic demand.

Still, the market responded with indifference. Retail investors have not rotated into APT following the announcement.

Institutions have not signaled a clear preference for the asset either. On-chain activity has not produced the kind of demand shock that typically moves prices.

Why Price Ignored the News and What Comes Next

Markets generally do not reward projects for correcting past mistakes. The lack of price reaction reflects this well-established pattern in crypto.

Trust, once broken by poor tokenomics design and unlock cycles, requires more than adjusted numbers to rebuild. It requires a visible surge in usage and ecosystem activity.

Aptos also lacks a dominant narrative in the current market cycle. Move language is a technical feature, not a category-defining story.

Competing chains have captured niches in areas like real-world assets, gaming, and institutional infrastructure. Aptos has not yet claimed ownership of any single space.

Ourcryptotalk framed the remaining challenge clearly. The project needs live dashboards for burn, emissions, and buybacks to build transparency.

It also needs to route ecosystem fees into stakers or burns to make APT feel like true ownership. Without a killer narrative, the token risks fading even with improved supply mechanics.

If ecosystem growth accelerates while emissions remain suppressed, a supply squeeze could quietly develop. Without that growth, the tokenomics upgrade alone is unlikely to drive a sustained rally.

The post Here Is Why Aptos’ Structural Fixes Failed to Spark a Price Rally appeared first on Blockonomi.

TLDR:

Tether will stop CNH₮ issuance immediately and end redemptions after one year due to limited demand.

The CNH₮ phaseout follows a structured process with advance notice and a fixed redemption deadline.

Tether said low adoption levels no longer justified ongoing operational and compliance support.

The company plans to redirect resources toward stablecoins with stronger organic usage and liquidity.

A major stablecoin product is set to exit the market after failing to attract lasting demand. Tether confirmed it will wind down support for its offshore yuan token CNH₮ following an internal review. 

The company will stop issuing new tokens immediately and plans to close redemption services within a year. The move signals a shift toward products with stronger usage and long-term sustainability.

CNH₮ Stablecoin Shutdown Marks Strategic Shift

The announcement surfaced through a statement shared by Wu Blockchain, which summarized Tether’s decision to discontinue CNH₮. Tether said market conditions and weak adoption drove the outcome.

According to a company blog post, Tether now reviews each stablecoin based on demand, sustainability, and community usage. CNH₮ no longer met those benchmarks.

Tether will not mint any additional CNH₮ tokens starting immediately. This step locks the circulating supply and prevents further market expansion.

Redemption services will remain active for one year under existing terms. Tether plans to issue a reminder notice before the final deadline.

Tether announced it will discontinue support for the offshore yuan stablecoin CNH₮: effective immediately, no new tokens will be issued; redemption support will end one year after the announcement, with a prior reminder. The decision was based on market conditions and limited…

— Wu Blockchain (@WuBlockchain) February 21, 2026

Tether Refocuses on Core Stablecoin Products

Tether framed the decision as part of a broader effort to concentrate resources on high-usage assets and infrastructure. The firm said it aims to strengthen security, liquidity, and long-term relevance across its supported tokens.

CNH₮ holders can still redeem their tokens until the cutoff date. The company advised customers to act early rather than wait until the deadline.

The statement linked the phaseout to limited community interest and declining practical use compared with other stablecoins. Tether said maintaining operational standards for CNH₮ no longer made economic sense.

The company added that future efforts will center on expanding tokenization tools and core stablecoin liquidity. It positioned the move as a reallocation of technical and compliance resources.

Tether has followed similar structured exits for earlier discontinued products. Each process included advance notice, a fixed redemption window, and continued support during the transition period.

For users, the decision narrows options tied to offshore yuan exposure inside crypto markets. It also reflects how stablecoin issuers now prioritize scale and consistent demand over experimental currency pegs.

The post Tether Ends CNH₮ Stablecoin Support: Here’s Why appeared first on Blockonomi.

TLDR:

Dubai’s real estate tokenization enters Phase Two, putting 7.8 million tokens up for regulated secondary market trading.

Ctrl Alt and DLD built a controlled trading framework to test market efficiency while protecting investor interests and governance.

ARVA management tokens and ownership tokens work together on-chain to create one immutable record of property ownership.

All Phase Two transactions settle on the XRP Ledger, secured by Ripple Custody within Dubai’s regulated digital asset framework.

Real estate tokenization in Dubai has reached a new milestone. Ctrl Alt and the Dubai Land Department (DLD) have launched Phase Two of their Real Estate Tokenization Project Pilot.

This phase introduces controlled secondary market trading for tokenized property assets. The move follows a successful pilot that tokenized ten properties worth over $5 million.

Around 7.8 million tokens issued during the first phase are now eligible for resale within a regulated trading environment.

Secondary Market Trading Opens Under Regulated Framework

Phase Two creates a structured environment for investors to trade tokenized real estate assets. Trading takes place on the project’s distribution platform, keeping transactions aligned with existing land registry processes. All on-chain activity continues to run on the XRP Ledger and is secured by Ripple Custody.

The Dubai Land Department and Ctrl Alt designed the secondary market to test market efficiency and operational readiness.

Thrilled to see Phase Two launch for Dubai @Land_Department Real Estate Tokenization Project! Building on the pilot, controlled secondary market trading is now live for tokenized properties on the XRP Ledger, secured by @Ripple Custody via our partner @CtrlAltCo

This is massive…

— Reece Merrick (@reece_merrick) February 20, 2026

Governance structures and investor protections remain central to the framework’s design. This approach ensures trading activity stays within regulatory boundaries set by VARA.

Ctrl Alt serves as the tokenization infrastructure partner for the project. The firm minted and issued the original title deed ownership tokens during Phase One. Now, it is deploying the secondary market functionality for Phase Two operations.

Robert Farquhar, CEO, MENA at Ctrl Alt, spoke about what the phase represents for Dubai’s digital asset landscape:

“We’re proud to work with the Dubai Land Department and VARA on Phase Two of the project, demonstrating what is possible when governments and institutional-grade innovation come together to build market-leading digital rails. Secondary market trading is essential to that outcome.”

Dual Token Framework Supports Smooth Fractional Ownership

For Phase Two, Ctrl Alt will issue Asset-Referenced Virtual Asset (ARVA) management tokens. These tokens facilitate regulated secondary-market transfers alongside the original ownership tokens. Both token types are recorded on-chain, creating one immutable ownership record.

Ctrl Alt engineered a technical framework to support the dual operation of ARVA management tokens and ownership tokens on-chain. This structure handles the complexity behind the scenes.

Distribution platforms like PRYPCO can then deliver fractional real estate experiences without building their own tokenization infrastructure.

Matt Acheson, CPO at Ctrl Alt, described the engineering approach behind the system:

“Our goal was to build a secondary market infrastructure that is efficient for the entire ecosystem while maintaining the controls and governance required by the DLD and VARA. We manage the underlying complexity of this tokenization technology so that distribution platforms can deliver smooth, fractional real estate experiences to their end users.”

Ctrl Alt holds a licensed Virtual Asset Service Provider status and was the first firm to receive an Issuer license from VARA.

The company additionally holds a Broker-Dealer license, strengthening its position to support regulated token transfers.

These credentials allow Ctrl Alt to operate within Dubai’s formal digital asset framework while supporting government-led real estate innovation.

The post Dubai Real Estate Tokenization Enters Secondary Market Phase With 7.8 Million Tokens Now Up for Trading appeared first on Blockonomi.

TLDR:

Treasury T-bill issuance holds a +0.80 correlation with Bitcoin price over the last four years of data.

M2 money supply has decoupled from Bitcoin, making it an unreliable indicator for forecasting price direction.

The Fed balance sheet scores a near-zero correlation of -0.07 with Bitcoin, removing it as a credible signal.

T-bill issuance peaked in late 2024, and Bitcoin has shown renewed weakness as early 2026 issuance declines.

T-bill issuance is gaining recognition as Bitcoin’s most reliable macro indicator, pushing aside long-favored metrics like M2 money supply.

A crypto analyst recently shared data pointing to a +0.80 correlation between Treasury T-bill issuance and Bitcoin over four years.

That figure towers above what M2 and the Federal Reserve balance sheet have managed to produce. With Bitcoin last trading around $67,721, the conversation around macro signals is shifting in a clear direction.

Why M2 and the Fed Balance Sheet No Longer Tell the Full Story

T-bill issuance is stepping into the spotlight as M2 money supply loses its grip as a Bitcoin forecasting tool. Crypto analyst Axel Bitblaze posted on X that Bitcoin has already decoupled from M2 in observable stretches. During those periods, M2 stayed flat or moved higher, yet Bitcoin did not respond accordingly.

This chart is worth watching next time..

Not M2 supply, not the fed balance sheet. as we’ve already seen M2 decouple.

there were periods where M2 was flat or even up and $BTC didn’t care..

same with the fed balance sheet. correlation here is basically zero at -0.07.

the chart… pic.twitter.com/bR4UhXX0xr

— Axel Bitblaze (@Axel_bitblaze69) February 20, 2026

The Federal Reserve balance sheet has also struggled to track Bitcoin’s price behavior with any consistency. Bitblaze recorded the correlation between the Fed balance sheet and Bitcoin at just -0.07. That number effectively removes it from serious consideration as a directional signal.

T-bill issuance, however, has held a +0.80 correlation with Bitcoin across the same four-year period. For a notoriously volatile asset like Bitcoin, that reading carries real weight.

Analysts are now paying closer attention to how Treasury market activity channels liquidity into broader risk appetite.

The Four-Year Timeline That Makes T-Bill Issuance Hard to Ignore

The case for T-bill issuance as a Bitcoin signal is built on a timeline that stretches back to late 2021. Bitblaze noted that issuance peaked around that time, and Bitcoin soon followed with its own cycle top.

When issuance began falling through 2022, Bitcoin crashed in the months that came after.

The connection held again in mid-2023, when T-bill issuance bottomed out alongside Bitcoin’s price floor. From that low point, both began climbing in tandem, with Bitcoin trailing the issuance trend by a visible lag.

Through 2024 and into 2025, rising issuance continued to pull Bitcoin higher with that same delayed rhythm.

Then in late 2024, T-bill issuance peaked once more. As early 2026 arrived, issuance started declining, and Bitcoin’s price weakened in step.

Bitblaze summed it up directly: “When the blue line goes up, BTC follows with a delay. When it rolls over, BTC struggles.” The four-year record now has traders watching Treasury issuance schedules as closely as any on-chain metric.

 

The post Move Over M2: Data Shows Treasury T-Bill Issuance Drives Bitcoin Price Cycles appeared first on Blockonomi.

TLDR:

Custodia CEO Caitlin Long called Trump family crypto ties the “big showstopper” blocking the CLARITY Act in the Senate.

Long described the bill’s Senate passage as a “coin flip,” with seven Democratic votes still needed to reach cloture.

Trump-linked projects like World Liberty Financial have made securing bipartisan Senate support significantly more difficult.

Long warned that without legislation, crypto regulations remain vulnerable to reversal by any future incoming administration.

Custodia Bank CEO Caitlin Long has identified Trump family crypto ties as a central obstacle to the CLARITY Act’s Senate passage.

Speaking at ETH Denver on Wednesday, Long said meme coins and ventures linked to President Donald Trump have eroded bipartisan support for the bill.

She described its chances as a “coin flip.” The legislation passed the House in July 2025 but remains stalled in the Senate over ethics concerns and stablecoin disputes.

Long Points to Trump-Linked Crypto as the “Big Showstopper”

Long did not hold back when asked about the bill’s Senate difficulties. She called the Trump family’s involvement in crypto “the big showstopper in the CLARITY Act.”

Projects like World Liberty Financial and Trump-associated meme coins have drawn sharp Democratic opposition. That opposition has made the 60-vote cloture threshold increasingly difficult to reach.

Senator Elizabeth Warren has been among the most outspoken critics of Trump’s crypto activities. Long noted that even Senator Cynthia Lummis, a leading crypto advocate, admitted the controversy has complicated her efforts. “It created controversy,” Long told Decrypt.

“Lummis herself has said it made her job harder.” The ethics dimension has shifted the debate away from policy and toward politics.

Seven Democratic votes are needed to advance the bill past the Senate cloture threshold. So far, that number has proven hard to secure. Long acknowledged that an agreement satisfying both Congress and the White House remains possible.

“There is a possibility they reach an agreement on something the White House can live with, and Congress is comfortable with,” she said, “but they’ve got to be able to get the cloture vote.”

Meanwhile, negotiations are still active. White House officials, lenders, and the Crypto Council for Innovation met on Thursday to discuss stablecoin reward provisions.

That issue has emerged as another major sticking point alongside the ethics controversy. Both problems must be resolved for the bill to move forward.

Long Warns Against Relying on Rulemaking Over Legislation

Beyond the political obstacles, Long raised a broader concern about regulatory durability. She warned that rules established through agency rulemaking carry no permanent weight.

“When a new administration comes in, those rules can be reversed through new rule-making,” she said. A statutory framework, by contrast, requires a much harder process to undo.

Passing the CLARITY Act would lock in a regulatory structure that is far more resistant to political change. “If Congress puts it in statute, it doesn’t mean it can’t be changed,” Long said.

“It’s just a lot harder to change.” That durability is precisely why she believes congressional action matters more than regulatory guidance alone.

Long also addressed the current market downturn with measured perspective. She noted that a 50% drawdown is familiar to anyone who has been in crypto for years. “Those of us who’ve been around for a long time, a 50% drawdown is nothing,” she said.

Bear markets, she added, are an opportunity to build knowledge, with her consistent advice remaining the same: “Bear markets are the best time to get self-educated.”

 

The post Custodia CEO Caitlin Long Says Trump Family Crypto Ties Are Blocking the CLARITY Act in the Senate appeared first on Blockonomi.

TLDR:

BitGo Bank & Trust, N.A. serves as qualified custodian within Figure’s OPEN on-chain public equity network.

Figure’s OPEN network launched in February 2026, enabling equity issuance and trading on Provenance Blockchain. 

The BitGo–Figure integration separates custody from execution, preserving counterparty risk protections for institutions. 

Real-time on-chain settlement reduces reconciliation layers, lowering operational costs for broker-dealers and asset managers. 

Blockchain-native equity trading reached a new milestone as BitGo and Figure completed their first tokenized equity trades.

The trades were executed through Figure’s Alternative Trading System, operating on the Provenance Blockchain. BitGo Bank & Trust, N.A. served as the qualified custodian within Figure’s Onchain Public Equity Network.

The integration brings regulated custody and near real-time settlement to on-chain public equities, offering institutions a more efficient trading framework.

BitGo’s integration with @Figure is now live to help institutions mitigate counterparty risk and achieve cost savings on blockchain-native equity. BitGo serves as the independent trust layer, allowing for near real-time settlement while keeping assets in regulated custody.

The… pic.twitter.com/MauuRN5y7n

— BitGo (@BitGo) February 20, 2026

OPEN Network Brings Regulated On-Chain Equity Infrastructure to Market

Figure’s OPEN network launched in February 2026 as a regulated electronic trading venue. It enables companies to issue and trade equity directly on blockchain infrastructure.

Issuance, trading, and settlement are embedded into a single on-chain environment. This removes multiple intermediary layers that traditionally slow down public equity markets.

BitGo Bank & Trust, N.A. operates as a qualified custodian within the OPEN framework. The bank safeguards assets and provides regulated infrastructure for all participants.

Its custodian role ensures compliance with existing financial regulations for institutions. Consequently, regulated participants can access blockchain-native equity within a familiar oversight structure.

The completed trades demonstrate how tokenized equities can function in a continuous on-chain environment. Settlement activity occurs in real time within a regulated framework on Figure’s ATS.

Trade records are also published directly on-chain, adding a layer of market transparency. This approach removes several reconciliation steps found in traditional market infrastructure.

Mike Belshe, CEO of BitGo, spoke directly to the partnership’s broader purpose for market participants.

“At BitGo, our goal is to provide institutions the infrastructure and ability to trade, secure and build on anything on-chain. Our partnership with Figure moves the industry in that direction with BitGo operating as the independent trust layer to reduce risk, increase transparency and instill confidence in continuous markets.”

Custody Separation and Cost Efficiency Support Institutional Participation

BitGo and Figure maintain a clear separation between custody and trade execution throughout their integration. This preserves the counterparty risk protections that traditional market structure depends on.

Institutions can therefore engage with blockchain-native equity without compromising governance standards. The model mirrors core principles from conventional finance while running on blockchain rails.

By cutting reconciliation layers, the integration reduces operational overhead for market participants. Capital efficiency also improves compared to traditional batch-based settlement systems.

Broker-dealers and asset managers can use this as a repeatable integration model. As a result, on-chain equity products become more accessible to a broader range of regulated institutions.

Mike Cagney, Figure’s Executive Chairman, addressed how qualified custody makes institutional engagement more practical.

“Partnering with BitGo brings qualified custody and institutional-grade controls to the OPEN on-chain public equity network. With instant settlement on Provenance and the potential to meaningfully reduce market-structure friction and costs, this is a concrete step toward modernizing how public equities trade and settle.”

Together, BitGo and Figure have established a scalable framework for blockchain-native equity markets. The model combines blockchain efficiency with governance standards that institutions already recognize and trust.

 

The post BitGo and Figure Execute First Blockchain-Native Equity Trades on Figure’s Alternative Trading System appeared first on Blockonomi.

TLDR:

S&P assigned a BBB- rating to Ledn’s ABS senior notes, the first for a digital asset lender.

The $188M offering was 2x oversubscribed, with institutional demand exceeding the full deal size.

Ledn’s bitcoin collateral stays ring-fenced in custody and cannot be lent out by any party.

The ABS creates a rated benchmark for bitcoin-backed loans, a first in crypto credit markets.

Ledn has closed a $188 million asset-backed security offering backed by its portfolio of Bitcoin-collateralized retail loans. 

Standard & Poor’s assigned the senior notes a BBB- rating, marking the first investment grade rating ever given to a digital asset lending portfolio. 

The deal drew twice the demand it sought, with institutional interest surpassing the full offering size. No crypto-native lender has hit this benchmark before.

Ledn Becomes First Crypto Lender to Earn Investment Grade ABS Rating From S&P

The rating places Ledn in a category previously reserved for traditional asset classes. 

Auto loans, mortgages, and similar instruments have long carried these benchmarks. Bitcoin-backed lending has not, until now. S&P’s decision signals a structural shift in how institutions view crypto credit.

Ledn shared details of the transaction via a blog post published alongside the announcement. The company stated that S&P evaluated its loan book using the same analytical frameworks applied to conventional lending assets. 

Operational procedures, custody standards, and technology platforms were all reviewed. The outcome confirmed that Ledn’s systems met institutional requirements.

The offering closed oversubscribed by a factor of two. 

Demand from institutional buyers exceeded the $188 million target. Ledn did not disclose the specific investors involved. The oversubscription reflects growing appetite for rated crypto credit products among traditional capital allocators.

Ledn noted the ABS structure does not change how client collateral is handled. Bitcoin posted as collateral remains in custody and stays ring-fenced. 

Neither Ledn, its funding partners, nor any financing vehicle can lend out that collateral. The company emphasized this in its blog post to address client concerns about counterparty exposure.

Ledn has issued the first investment grade-rated bitcoin-backed ABS in the digital asset industry.

The senior notes under the offering were rated BBB- by S&P. Plus, the ABS has been 2x oversubscribed, with institutional demand exceeding the $188 million offering size.

This is… pic.twitter.com/D35fwVyxYq

— Ledn (@hodlwithLedn) February 20, 2026

Bitcoin-Backed Lending Gets Its First Institutional Benchmark With This ABS Closing

The company has operated since 2018 and has navigated multiple market cycles, including the 2022 credit crisis. Its loan book maintained a clean performance record through those periods. 

S&P’s review covered that full history. The rating reflects durability across volatile conditions, not just recent performance.

Ledn described the ABS market access as a new liquidity frontier. The structure creates a direct channel between its bitcoin-backed loan portfolio and institutional credit markets. 

This allows funding that operates independently of broader digital asset market conditions. The company framed this as a long-term stability mechanism.

Pension funds and insurance companies typically require investment grade ratings before allocating capital. This deal now meets that threshold for the first time in the digital asset space. 

Ledn’s blog post described the milestone as validation of the standards it has worked to establish. The transaction sets a new pricing and risk benchmark for the sector.

The post Ledn Closes $188M Bitcoin-Backed ABS With First-Ever Investment Grade Rating From S&P appeared first on Blockonomi.

TLDR:

Pakistan’s PVARA formally launches a live crypto sandbox to test real-world virtual asset use cases under regulatory oversight. 

The sandbox framework targets stablecoins, tokenization, remittances, and on- and off-ramp infrastructure inside a supervised environment. 

PVARA Chairman Bilal bin Saqib joined global crypto and finance leaders at the World Liberty Forum in Mar-a-Lago, Florida. 

Goldman Sachs, Nasdaq, Franklin Templeton, and Coinbase participated in forum talks centered on stablecoins and financial innovation.

Pakistan launches crypto sandbox to test digital assets in a live, supervised environment built for real-world virtual asset use cases.

The Pakistan Virtual Assets Regulatory Authority formally approved the framework, marking a concrete step toward structured digital asset oversight.

The sandbox covers tokenization, stablecoins, remittances, and on- and off-ramp infrastructure. All operations run under direct PVARA supervision.

Sandbox Guidelines and the application process will be published on the PVARA website shortly, giving interested firms a clear path forward.

A Controlled Framework for Real-World Digital Asset Testing

The crypto sandbox gives companies a working environment to test virtual asset solutions within defined regulatory boundaries.

PVARA will monitor live operations and review outcomes before building broader compliance rules around them. This approach allows the authority to gather practical market data without reducing its oversight responsibilities.

Rather than regulating from theory alone, Pakistan is now working from observed, real-world results gathered inside a controlled setting.

The Pakistan Virtual Assets Regulatory Authority has formally approved and launched its Regulatory Sandbox for virtual assets.

The Sandbox creates a live, supervised environment for testing real-world use cases including tokenization, stablecoins, remittances, and on- and…

— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) February 20, 2026

The sandbox targets several key segments of the virtual asset market. Tokenization, stablecoins, remittance solutions, and on- and off-ramp infrastructure are all within the program’s scope.

Each use case will be tested against Pakistan’s specific financial and regulatory environment. This targeted structure ensures the framework remains focused and produces results that are directly applicable to domestic market conditions.

Firms that qualify for the sandbox can operate in a live market environment while remaining accountable to the authority.

The full Sandbox Guidelines and application details will be released on the PVARA website in the coming days. Companies working in the virtual asset space should watch the official website closely for submission deadlines and participation requirements.

PVARA Chairman Attends World Liberty Forum as Pakistan Moves Toward Global Alignment

Bilal bin Saqib, Chairman of PVARA, attended the World Liberty Forum at Mar-a-Lago in Florida earlier this week. The event brought together financial executives, crypto innovators, and policymakers from across the global financial sector.

Discussions centered on the future of finance and digital technology’s growing role in reshaping traditional systems.

Saqib shared updates from the forum directly on social media, describing it as a gathering focused on stablecoins, tokenization, and financial innovation. 

Great day at Mar-a-Lago for the World Liberty Forum.

Wall Street, crypto, and policymakers all in one room. Goldman Sachs, Nasdaq, Franklin Templeton, Coinbase and others aligned on the future of stablecoins, tokenisation, and financial innovation. pic.twitter.com/JvsQ2sWmCp

— Bilal bin Saqib MBE (@Bilalbinsaqib) February 19, 2026

Representatives from Goldman Sachs, Nasdaq, Franklin Templeton, and Coinbase were among the participants in those discussions. The forum reflected a growing global consensus around structured frameworks for digital asset development.

Pakistan’s decision to launch a crypto sandbox to test digital assets aligns with the direction taken by leading financial institutions worldwide.

The domestic framework now gives Pakistani firms a regulated channel to pursue innovations similar to those discussed at the global forum.

As countries move toward structured virtual asset oversight, Pakistan’s sandbox places it among nations actively shaping the next phase of digital finance regulation.

 

The post Pakistan Goes Live With Crypto Regulatory Sandbox: Here’s What It Means for Digital Assets appeared first on Blockonomi.

TLDR:

SBI Ripple Asia and AWAJ signed an MOU to provide XRPL technical support to financial startups in Asia.

AWAJ already holds separate partnership agreements with JETRO and Ripple, expanding its regional influence.

Support under the deal covers system design, security checks, and connections to existing financial infrastructure.

The initiative targets globally scalable XRPL use cases, with Japan positioned as the development launchpad.

SBI Ripple Asia has signed a formal memorandum of understanding with Asia Web3 Alliance Japan. The partnership targets startups building financial services on blockchain technology. 

Both organizations will work together to provide structured technical support. This marks a key step in expanding XRP Ledger adoption within Asia’s growing web3 sector.

SBI Ripple Asia and AWAJ Formalize Technical Support Framework for Blockchain Startups

The agreement focuses on supporting businesses that want to deploy financial services using XRPL. 

SBI Ripple Asia brings deep experience in international remittance and payments infrastructure. AWAJ, meanwhile, operates as a venture studio connecting startups with investors and institutional partners.

According to the announcement, support will cover system configuration, technical design, and security verification. Each engagement will be handled through individual contracts between the parties involved. The scope of support will vary case by case.

SBI Ripple Asia is headquartered in Minato-ku, Tokyo, and is led by Representative Director Masashi Okuyama. 

AWAJ is based in Chuo-ku, Tokyo, and is represented by Hinza Asif. The two organizations say this collaboration is premised specifically on the XRP Ledger.

AWAJ recently signed separate agreements with the Japan External Trade Organization and Ripple. Those deals have positioned it as a central node in Japan’s web3 ecosystem. The new MOU with SBI Ripple Asia adds another layer to that growing network.

SBI Ripple AsiaとAsia Web3 Alliance Japanが提携しXRPL利用さ!

AWAJは最近も日本貿易振興機構(JETRO)とRippleとも提携した,アジアweb3のハブ的機関だね
今提携でXRPLを活用した金融サービスを作る事業者に対し支援するようさ!

XRPL利用の組織が鮮やかに増えたね!… https://t.co/Qq7AbnLHfN pic.twitter.com/VnkEBplhTC

— カエサル・ナルシスト (@crypto_narcist) February 20, 2026

XRPL Positions as Infrastructure of Choice for Asia’s Financial Innovation Push

The announcement highlights growing interest in blockchain-based financial services across the region. 

However, it also acknowledges real barriers: regulatory complexity, security requirements, and business viability concerns. SBI Ripple Asia plans to help startups navigate all of these.

Technical support under this initiative will primarily reach startups in AWAJ’s innovation programs. These programs are designed to take early-stage ideas through proof-of-concept and into commercialization. 

AWAJ describes its model as “hands-on,” going beyond simple networking.

The organizations say the goal extends beyond Japan. They aim to develop financial use cases on XRPL that can scale globally. Japan, in their framing, becomes the origin point for these internationally applicable solutions.

Per the official announcement, the partnership also envisions connection with existing financial systems, not just new blockchain infrastructure. 

This practical framing sets it apart from more theoretical web3 initiatives. The emphasis stays on whether technology can function as a real financial service.

The post SBI Ripple Asia Partners With AWAJ to Drive XRPL Adoption Across Asia appeared first on Blockonomi.

TLDR:

The Supreme Court struck down Trump’s IEEPA tariffs, putting $150B+ in potential refunds on the table for U.S. firms.

Refunds won’t be automatic; companies must file claims or lawsuits to recover payments made under the tariffs.

If tariffs ease, import costs may fall, inflation could cool, and the Fed may have room to cut rates sooner.

Trump retains tariff authority under Sections 232, 301, and 122, though broader tariffs now require stronger legal grounds.

The Supreme Court has ruled Trump’s sweeping tariffs unconstitutional, upending a cornerstone of his trade policy. 

Importers across the U.S. paid over $150 billion under these tariffs. The government now faces pressure to return that money. The ruling reshapes the trade landscape and carries wide economic consequences.

Supreme Court Tariff Ruling Opens Door to $150 Billion in Refunds

The tariffs in question relied on the International Emergency Economic Powers Act, known as IEEPA. The court’s decision strips that tool from the administration’s trade arsenal. It does not, however, eliminate the president’s authority to levy tariffs altogether.

Refunds will not flow automatically to affected companies. According to Bull Theory, businesses will likely need to file formal claims or pursue litigation. That process could take months or years to resolve.

The Supreme Court has ruled Trump's tariffs ILLEGAL and the goverment may have to refund $150 Billion+ to the U.S. companies.

Let us explain
How this refund will work,
The impact on US economy,
and Trump’s Backup plan.

Importers have already paid roughly $150 billion under… pic.twitter.com/G92DSXNZ4t

— Bull Theory (@BullTheoryio) February 20, 2026

If the government approves large-scale refunds, federal revenue takes a serious hit. The fiscal gap could force higher borrowing, which tends to push Treasury yields upward. That creates a new pressure point for bond markets.

At the same time, removing these tariffs could ease cost burdens on importers. Lower import costs typically reduce what businesses charge consumers. That could translate into softer inflation readings over time.

Crypto and Financial Markets Watch Fed’s Next Move Amid Tariff Fallout

The Federal Reserve currently faces a difficult position. Growth signals are soft. Inflation remains sticky. The tariff ruling adds a new variable to that calculation.

If import costs fall and inflation cools, the Fed gains more room to cut interest rates. Bull Theory notes that reduced tariff pressure and easing prices could support more aggressive rate cuts. Lower rates historically benefit risk assets, including crypto markets.

Rate cuts tend to lift consumer spending and business investment. Housing markets also respond quickly to cheaper borrowing. Crypto traders watch these macro signals closely.

Trump still holds several legal tools for imposing tariffs. Section 232 covers national security-based tariffs and applies to specific industries. Section 301 targets countries engaged in unfair trade practices, and it already underpins most China-related tariffs.

Section 122 offers a faster but narrower option, limited in size and duration. Anti-dumping and countervailing duties remain available too, though they require formal legal proceedings. 

Bull Theory points out that what changes most is speed. IEEPA allowed near-instant, broad tariffs. Future tariffs will require investigations and stronger legal grounds.

The post Supreme Court Rules Trump Tariffs Illegal, $150B Refund Now on the Table appeared first on Blockonomi.