South Korea’s largest cryptocurrency exchange, Upbit, has partnered with the Optimism Foundation to build Giwa Chain, a new Ethereum-based Layer 2 blockchain network.

 

Giwa Chain, which will be built on Optimism’s open source OP Stack, will be the first of its kind built on the self-managed tier of Optimism’s OP Enterprise and stems from the growing need for exchanges to build their own blockchains.

 

 

While crypto exchanges using shared chains are not inherently problematic, issues arise as usage increases, making it difficult for these networks to handle the growing workloads of exchanges, including institutional transaction volumes, compliance requirements, and fee economics, which often compound as an exchange scales. For a global exchange like Upbit, which serves more than 13 million users and ranks among the top exchanges by spot trading volume, owning and managing its own blockchain is critical for performance and scalability.

 

By partnering with Optimism to build a self-managed chain, Upbit allows Optimism to manage key technical aspects of the chain’s infrastructure, including tooling and engineering support, while still retaining sovereignty over the chain’s control and overseeing key functions such as the primary sequencer, chain configuration, and operational authority.

 

“Operating our own Giwa Chain is a strategic move for Upbit. Our goal is to provide institutional and retail users with a level of performance and compliance consistent with our existing platform,” said Minseok Jung, Chief Operating Officer of Dunamu Inc.

 

“The Optimism Foundation’s self-managed tier provides a suitable framework, allowing us to maintain operational control while building on established infrastructure. This approach aligns with our requirements for scalability and oversight.”

 

Giwa Chain is currently live on testnet, with mainnet deployment to follow. Dunamu, the parent company of Upbit, has also signed a memorandum of understanding with the Optimism Foundation on May 4, outlining key aspects of Giwa Chain, including its architecture reviews, performance benchmarking, and security audits.

 

Crypto Exchanges Building Their Own Chains

There has been an increase in the number of cryptocurrency exchanges building their own layer 2 blockchains, with many doing so for improved infrastructural performance and to gain control over fees, transaction sequencing, user experience, and compliance.

 

The OP Stack has been instrumental in this development, with the Optimism Foundation stating that its OP Stack currently houses over 32 layer 2 blockchain networks, including Binance’s opBNB chain, Kraken’s Ink chain, Gate.io’s Gate Layer, and OKX’s X Layer.

 

 

Gemini Olympus, LLC, an affiliate of the Gemini cryptocurrency exchange, has recently received a Derivatives Clearing Organization license from the Commodity Futures Trading Commission, enabling it to act as the clearinghouse for Gemini’s regulated derivatives trading, including prediction markets.

 

“Today marks a major milestone in Gemini’s marketplace expansion. In addition to our crypto spot marketplace, Gemini now has a full-stack, end-to-end marketplace for predictions as well as futures, options, and more,” said Cameron Winklevoss, Gemini’s president. He added that the DCO license is a major stepping stone toward Gemini achieving its goal of building a super app that allows users to fulfill all their existing and future financial needs in one place.

 

 

With this newly secured DCO license, together with the Designated Contract Market license that Gemini Titan, LLC, another Gemini entity, secured around December of last year, Gemini is now one step closer to obtaining the full suite of CFTC derivatives licenses.

 

Once it secures the Futures Commission Merchant license, the final component of the CFTC derivatives licensing framework, the company would be able to position itself as a fully regulated derivatives platform in the United States, offering U.S. customers a range of products, including crypto futures, options, and perpetual futures.

 

Gemini Joins Exchanges in Crypto Derivatives Push

With the Derivatives Clearing Organization license now secured and the Futures Commission Merchant license in sight, Gemini has joined a host of other crypto exchanges, including Kraken, Crypto.com, and the Chicago Mercantile Exchange, in the race to position themselves as all-in-one derivatives platforms.

 

To break into the derivatives market, Payward, the parent company of the cryptocurrency exchange Kraken, acquired Bitnomial, a U.S.-based derivatives exchange, for $550 million last month. Like Kraken, Coinbase has also taken the acquisition route to enter the crypto derivatives market, acquiring Deribit Exchange for $2.9 billion and The Clearing Company for an undisclosed amount.

 

The race to provide complete crypto derivatives offerings is not unique to cryptocurrency exchanges, as prediction market companies like Kalshi and Polymarket are also making efforts to enter the crypto derivatives market.

 

Through Kinetic Markets LLC, one of its affiliates, Kalshi recently secured the Futures Commission Merchant license, along with the Designated Contract Market license it already holds, with efforts underway to secure the Derivatives Clearing Organization license, which is the final license required.

 

 

BitMEX, a derivatives-focused cryptocurrency exchange, has partnered with Zodia Custody, an institutional-first digital assets custody firm, to enable off-exchange trading and secure asset custody for BitMEX’s clients.

 

The partnership, announced this week, will see the integration of Zodia Custody’s Interchange platform into BitMEX. Interchange is an off-venue settlement solution that allows institutional and professional clients to trade directly on BitMEX while keeping their digital assets securely held off-exchange with Zodia Custody.

 

 

This partnership, according to Stephan Lutz, BitMEX CEO, draws on lessons learned from past market failures, especially the collapse of the FTX cryptocurrency exchange and the 1.4 billion dollar Bybit hack. These events, Lutz said, exposed the risks associated with unsegregated or compromised exchange-held funds and are key examples of how custody failures or security threats can put client funds at risk.

 

Through this partnership and the integration of the Interchange platform, BitMEX clients, especially institutional clients that often trade with large amounts of money, do not have to worry about the safety of their funds on the exchange in the event of a hack, as their digital assets are secured in Zodia Custody’s cold, segregated storage wallets.

 

The partnership also serves to bridge the gap between institutional-grade security and crypto-native liquidity, allowing BitMEX’s professional and institutional clients to access BitMEX’s deep crypto derivatives liquidity while eliminating the need to pre-fund the exchange before trading.

 

The Growing Need for Security on Crypto Exchanges

Security has been one of the major challenges faced by cryptocurrency platforms over the years. In 2025, over $4 billion was stolen from crypto platforms. This represents a 34 percent increase compared with 2024, when losses stood at $2.2 billion. Unfortunately, the recovery rate of stolen crypto funds remains very low, at less than 8 percent. This is even worse for centralized exchanges, which are often high value targets.

 

By integrating Zodia Custody’s interchange platform into its crypto infrastructure and allowing clients’ digital assets to be stored in Zodia Custody’s segregated vaults, BitMEX eliminates the trade offs institutional clients face when choosing between derivatives trading access and the safety of their assets. Since Zodia handles the custody of clients’ assets, BitMEX faces minimal damage in the event of a security breach or hack. 

 

 

The Bank of Korea (BOK), South Korea’s central bank, has proposed the introduction of crypto circuit breakers for domestic cryptocurrency exchanges, months after the Bithumb Bitcoin blunder.

 

In its recently published 2025 Payment and Settlement Systems Report, the bank recommended introducing system-level safeguards similar to the Korea Exchange (KRX) stock market circuit breakers that would automatically halt trading on crypto exchanges, especially during sharp price swings or abnormal transactions caused by large volume or erroneous trades.

 

Referencing the massive payout mishap at Bithumb in February, the BOK argued that this feature would help prevent such incidents from repeating, citing the crypto market’s lack of sufficient safeguards compared to traditional finance. It also suggested including the proposal in South Korea’s pending Digital Asset Basic Act.

 

“The virtual asset industry has inadequate internal control systems and faces weaker regulatory oversight compared to traditional financial institutions,” the bank said.

 

“It is necessary to consider introducing systemic mechanisms such as the Korea Exchange’s circuit breaker, which can block abnormal trades such as large orders or halt trading in the event of sudden fluctuations in virtual asset prices.”

 

Bithumb February Bitcoin Blunder

On February 6, 2026, Bithumb, one of South Korea’s largest cryptocurrency exchanges, was running its routine “Random Box” promotional giveaway. The plan was to distribute small cash prizes totaling 620,000 Korean won (KRW), worth approximately 423 to 460 US dollars, to about 600 qualified users, with each user receiving between 2,000 and 50,000 KRW, or about 1.37 to 34 US dollars.

 

However, the situation escalated when an employee mistakenly entered “BTC” as the currency unit instead of “KRW.” As a result, the system instantly credited approximately 620,000 Bitcoin to users, with each user receiving roughly 2,000 Bitcoin.

 

Bithumb detected the error within minutes and promptly restricted trading and withdrawals on the affected accounts. The exchange was able to recover 99.7 percent of the distributed Bitcoin, while the remaining 1,788 Bitcoin that had already been sold by users were covered by the exchange’s corporate reserves.

 

While the introduction of stock-style circuit breakers for cryptocurrency exchanges appears to be motivated by a desire to protect markets, many experts argue that such measures run counter to the decentralized and borderless nature of cryptocurrency. 

 

Some warn that these guardrails could amplify risks and create price discrepancies between domestic exchanges and global markets. This, in turn, could lead to arbitrage opportunities and confusion, particularly when South Korean exchanges halt trading while the rest of the world continues.

 

 

Charles Schwab, the Texas-based brokerage giant with more than $12.2 trillion in assets under management, confirmed Friday it is on track to roll out spot Bitcoin and Ethereum trading for U.S. clients before the end of Q2. It is, by any measure, a significant moment for the digital asset industry, though the market's reaction has been muted so far.

 

"We remain on track to launch our spot crypto offer in the first half of 2026, starting with Bitcoin and Ethereum," a company spokesperson told reporters Friday. Clients looking for early access can now join a waitlist through the newly launched Schwab Crypto page, which has quietly appeared under the firm's Investment Products section online.

 

A Phased Rollout

CEO Rick Wurster, confirmed the launch will start in Q2 with a limited client pilot before widening to the broader investor base. Before that even happens, the firm plans to test the product internally with its own employees, a cautious approach that is very much in line with how Schwab tends to operate.

 

The service will be operated through Charles Schwab Premier Bank, SSB, a regulated banking subsidiary. Although, not everyone in the U.S. will have access at launch. Residents of New York and Louisiana are excluded from the signup form, due to tight state-level regulatory considerations that have long complicated crypto product rollouts in those markets.

 

What This Actually Means for Crypto Exchanges

The competitive implications here are real. Schwab is not some fintech startup trying to chip away at Coinbase's market share from the margins. This is a firm with tens of millions of existing retail and institutional clients who already trust it with their stocks, bonds, and retirement accounts. Bringing Bitcoin and Ethereum into that same account view, without needing a separate wallet or a new platform login, removes one of the biggest friction points keeping traditional investors on the sidelines.

 

Bloomberg ETF analyst Eric Balchunas has flagged pricing as the key variable to watch. Schwab already offers zero-commission stock and ETF trading. If the firm prices spot crypto below 50 basis points, the pressure on crypto-native exchanges could be significant, particularly for casual retail traders who are cost-sensitive and already comfortable inside the Schwab ecosystem.

 

Are Stablecoins Next?

Spot trading is likely just the opening move. Wurster signaled during an earnings call late last year that the firm wants exposure to stablecoins as well, describing them as something that will likely play a role in transacting on blockchains. A stablecoin offering, if it materializes, would put Schwab in even more direct competition with crypto-native platforms and potentially with payment networks.

 

The firm has also been expanding through acquisitions. Earlier this year, Schwab announced a $660 million deal to buy private shares platform Forge Global, aimed at giving clients access to pre-IPO investments. Wurster has said Schwab remains open to further deals in the crypto space if the right opportunity and valuation align.

 

Where Bitcoin and Ethereum Stand Right Now

At the time of writing, Bitcoin was trading near $67,000, down roughly 47% from its all-time high of $126,080. Ethereum sat around $2,050, off nearly 59% from its own peak set last August. Both assets have had a difficult few months, which makes the timing of Schwab's entry intriguing. The firm is coming in during a period of weakness, not euphoria, which could prove to be well-timed when the market recovers.

 

Schwab shares closed Thursday up about 1.5%, trading near $93.77, representing roughly a 19% gain over the past year. That compares favorably with Bitcoin's 18.5% decline over the same stretch. The brokerage's stock has, for now, outperformed the very asset class it is preparing to offer its clients.

 

Whether Schwab's entry into spot crypto ultimately proves to be a turning point for mainstream adoption, or just another incremental step in a long institutional migration into digital assets, remains to be seen.

 

The world's largest cryptocurrency exchange, Binance, has appointed Stephen Gregory as the chief executive officer (CEO) of its U.S. affiliate, Binance.US.

 

On Tuesday, March 11, Binance.US announced the appointment of compliance lawyer Stephen Gregory as CEO of the exchange. Stephen will take over from Norman Reed, who, according to the exchange, is stepping down to serve in an advisory role.

 

“I am honored to lead the Binance.US team as we write the next chapter for what we believe is the best platform for U.S. crypto investors to buy, trade, and earn digital assets,” Stephen said. “The Binance.US brand is extremely powerful, with a founder, Changpeng Zhao (CZ), who has continuously advocated for making the U.S. the crypto capital of the world,” he added.

 

Norman, the former Binance.US CEO, also expressed confidence in Stephen. “As we look to the next phase of growth for Binance.US, Stephen brings an entrepreneurial approach to leadership that I am confident will deliver for our customers in a meaningful way,” Norman said.

 

 

About Stephen Gregory

Stephen is a lawyer with nearly two decades of experience in the compliance industry. Before entering the crypto and fintech sectors, he worked in the U.S. Senate as a staff member for Senators Paul G. Kirk and Ted Kennedy and held roles at other government-affiliated agencies.

 

He later transitioned into private practice, working as a litigation and regulatory law expert for several law firms, including D'Ambrosio Brown LLP, McCormick & O'Brien LLP, Quinn Emanuel Urquhart & Sullivan, and Gage Spencer & Fleming LLP.

 

Entering into Crypto

In 2016, Stephen entered the crypto industry as a compliance officer at Gemini, where he helped the exchange navigate regulations and secure licenses for its U.S. crypto operations.

 

He did, however, move up the ranks in the compliance industry, serving as Chief Compliance Officer at crypto exchange CEX.IO, where he led the company’s global compliance program and oversaw its regulatory frameworks, including Anti-Money Laundering (AML) and Know Your Customer (KYC) programs.

 

In 2021, Stephen joined Currency.com as CEO, where he led the exchange’s U.S. operations, oversaw regulatory strategy, and expanded its services in the United States before its acquisition by CXNEST Ltd in May 2025.

 

 

A Coinbase shareholder has filed a derivative lawsuit against several top executives and board members of the crypto exchange, alleging compliance and disclosure failures by the company’s leadership. 

 

On Tuesday, Kevin Meehan, one of Coinbase’s shareholders, filed a complaint in a U.S. district court in New Jersey. The court filing cited several of Coinbase’s top directors, including CEO Brian Armstrong, co-founder Fred Ehrsam, Chief Legal Officer Paul Grewal, and Chief Financial Officer Alesia Haas, among other executives.