Washington’s long-running effort to write clear rules for crypto is moving forward, but not cleanly.

 

The U.S. Senate has released updated language for a long-anticipated crypto market structure bill, yet deep disagreements remain between lawmakers, committees, and the industry itself. Two separate Senate committees are now pushing different versions of the legislation, and the gaps between them are proving harder to close than many expected.

 

At stake is nothing less than who regulates crypto in the United States, how stablecoins are allowed to operate, and whether decentralized finance can exist without being squeezed into a framework built for Wall Street.

 

A Bill That Is Really Two Bills

The market structure effort is split between the Senate Agriculture Committee and the Senate Banking Committee, each advancing its own vision of how digital assets should be governed.

 

The Agriculture Committee’s draft leans heavily toward expanding the authority of the Commodity Futures Trading Commission. Under this approach, most major cryptocurrencies would be treated as digital commodities, placing them largely outside the Securities and Exchange Commission’s reach.

 

The Banking Committee’s version, often referred to as the CLARITY Act, takes a more cautious and detailed approach. It attempts to draw clearer legal lines between what counts as a security and what does not, while preserving a significant role for the SEC in overseeing parts of the crypto market.

 

Both sides say they want regulatory certainty. The problem is they disagree on what that certainty should look like.

 

The CFTC Versus SEC Fight Is Still the Core Issue

At the heart of the debate is a familiar Washington turf war.

 

Supporters of the Agriculture Committee draft argue that the CFTC is better suited to oversee crypto markets, particularly spot trading for assets like Bitcoin and Ethereum. They point to the agency’s lighter touch, its experience with commodities, and its closer alignment with how crypto markets actually function.

 

The Banking Committee sees things differently. Its members are more focused on investor protection and worry that shifting too much power to the CFTC could weaken oversight. Their draft tries to preserve the SEC’s role, especially when tokens are issued in ways that resemble traditional securities offerings.

 

Neither side appears ready to fully back down, which is why the Senate still has not settled on a single unified bill.

 

Stablecoins Become a Flashpoint

Stablecoins, once seen as the least controversial corner of crypto, are now one of the most contentious parts of the bill.

 

One major sticking point is a proposed restriction on stablecoin rewards or yield. Under the Banking Committee’s draft, issuers would face limits on paying users simply for holding stablecoins.

 

Crypto companies argue this would kneecap a core feature of digital dollars and make them less competitive with traditional financial products. Some in the industry say the provision feels less like consumer protection and more like an attempt to shield banks from competition.

 

Lawmakers defending the restriction say they are trying to prevent stablecoins from morphing into unregulated interest-bearing products that could pose risks to consumers and the broader financial system.

 

The disagreement has become symbolic of a larger divide over how much freedom crypto should have to innovate inside a regulated framework.

 

DeFi Still Does Not Fit Neatly Anywhere

Decentralized finance remains one of the hardest issues for lawmakers to solve.

 

Both Senate drafts struggle with how to treat protocols that do not have a central company, executive team, or traditional governance structure. Some lawmakers want stronger rules to prevent DeFi platforms from being used for illicit activity. Others worry that applying centralized compliance models to decentralized systems will effectively ban them.

 

For now, DeFi remains an unresolved problem in the bill, with language that critics say is either too vague or too aggressive, depending on who you ask.

 

Coinbase Draws a Line in the Sand

Industry frustration boiled over when Coinbase publicly withdrew its support for the Banking Committee’s draft.

 

The exchange called the proposal worse than the status quo, pointing to its treatment of DeFi, stablecoin yield restrictions, and limits on tokenized equities. Coinbase’s criticism carried weight in Washington and contributed to the Banking Committee delaying its planned markup hearing.

 

That delay rippled through the market, briefly weighing on crypto prices before sentiment stabilized.

 

Timing Gets Complicated

The Agriculture Committee is moving ahead more quickly, scheduling a markup hearing to debate amendments and advance its version of the bill.

 

The Banking Committee, meanwhile, has pushed its timeline back as lawmakers juggle other priorities, including housing legislation. That has pushed any meaningful progress into late winter or early spring at the earliest.

 

The longer the process drags on, the more uncertain the path becomes. Election season is approaching, and legislative calendars tend to tighten as political pressure increases.

 

A Broader Regulatory Backdrop Is Already in Place

The market structure debate is happening against a backdrop of recent regulatory action.

 

Congress has already passed stablecoin legislation that sets rules around reserves, disclosures, and audits. Earlier House efforts, including last year’s market structure bill, also laid groundwork by outlining how digital assets might be classified under federal law.

 

What the Senate is trying to do now is connect those pieces into a comprehensive framework. That has proven easier said than done.

 

The Next Test

The next major test will be whether the Agriculture and Banking Committees can reconcile their differences or whether one version gains enough momentum to dominate the process.

 

Expect heavy lobbying from crypto companies, financial institutions, and trade groups, particularly around stablecoin yield, DeFi protections, and agency jurisdiction.

 

For now, the Senate’s crypto market structure bill remains a work in progress, ambitious in scope, politically fragile, and still very much unsettled.

 

One thing is clear. The era of regulatory ambiguity is ending, even if the final shape of crypto regulation in the U.S. is still being fought over line by line.

 

Bermuda is taking a swing that very few governments have even talked about seriously, let alone tried.

 

The island nation says it wants to move large parts of its economy directly onto public blockchains, using stablecoins and crypto infrastructure instead of the traditional banking and payments stack. To do that, it has teamed up with Coinbase and Circle, two of the most established companies in the industry.

 

This is not a pilot tucked away in a sandbox. The ambition here is much bigger. Bermuda wants onchain rails to support real economic activity, the kind that happens every day, not just crypto trading.

 

Whether that actually works is still an open question. But the fact that a government is trying at all is notable.

 

How Bermuda Got Here

Bermuda did not wake up one morning and decide to put its economy onchain.

 

For years, the island has been quietly building a reputation as a place where crypto companies can operate without constantly guessing how regulators will react. The rules are clear. Licensing exists. Enforcement is predictable. That alone puts Bermuda ahead of many much larger jurisdictions.

 

Coinbase and Circle both set up regulated operations there long before this announcement. In some ways, this new initiative looks like the next logical step rather than a sudden leap.

 

Officials describe it as modernization. Fewer intermediaries, faster settlement, and lower costs. In plain terms, they think the financial plumbing can work better.

 

What the Crypto Companies Actually Do

Coinbase is mostly about infrastructure here.

 

Think wallets, compliance tooling, and the systems that make it possible for people and businesses to interact with blockchains without needing to understand every technical detail. Coinbase has spent years building that stack, and Bermuda wants to plug into it.

 

Circle’s role is more straightforward. It issues USDC, the dollar backed stablecoin that would act as the money moving through this onchain system. The appeal is obvious. Prices do not swing wildly, and payments can move quickly without touching legacy rails.

 

Together, they provide something that looks less like an experiment and more like a functioning financial system, at least on paper.

 

Regulation Is the Quiet Enabler

None of this happens without regulation that is already in place.

 

Bermuda’s digital asset laws spell out what exchanges, issuers, and custodians can and cannot do. That sounds boring, but it matters. It gives companies confidence to build, and it gives the government leverage to enforce standards.

 

In a global crypto landscape still shaped by uncertainty and court cases, that kind of clarity stands out.

 

For Bermuda, regulation is not about keeping crypto at arm’s length. It is about making it usable at scale.

 

This Is Not The First Test

There have already been small but meaningful trials.

 

Last year, local residents were given stablecoins to spend at participating merchants during a digital finance event. People bought meals, paid for services, and moved money using wallets and QR codes. It was not perfect, but it worked well enough to get attention.

 

Merchants got paid quickly. Users did not have to think too hard about what was happening under the hood. For policymakers, that mattered more than transaction volume.

 

Those early trials helped turn a concept into something more concrete.

 

Bermuda’s approach is anchored in what The Hon. E. David Burt, JP, MP, Premier of Bermuda describes as a collaborative model between government, regulator, and industry designed to enable responsible innovation at scale.

 

“Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and industry, with the support of Circle and Coinbase, two of the world’s most trusted digital finance companies, we are accelerating our vision to enable digital finance at the national level. This initiative is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance.”

 

Payments Are Really the Point

Strip away the buzzwords and this comes down to payments.

 

Small economies often pay more to move money, especially across borders. Stablecoins promise faster settlement and fewer fees, which can make a real difference for local businesses and government operations alike.

 

If onchain payments become normal in Bermuda, that alone would be a meaningful shift. Everything else, tokenization, smart contracts, broader digital asset services, comes later.

 

Why People Outside Bermuda Care

Bermuda is small, and that is part of the advantage.

 

Rolling out new systems is easier when you are not dealing with hundreds of millions of people and layers of bureaucracy. But success on a small island still sends a signal.

 

If this works, it shows that stablecoins can operate inside a regulated national framework without blowing things up. It also raises uncomfortable questions for countries that are still debating whether crypto belongs anywhere near their financial systems.

 

Other governments are paying attention, even if they are not saying much yet.

 

The Hard Parts Are Still Ahead

Adoption is not automatic.

 

People need to trust the tools they are using. Businesses need to see clear benefits. Regulators need to keep up as technology and global standards change. Any one of those things can slow momentum.

 

There is also the question of what happens when onchain systems meet real economic stress, not just controlled pilots and conferences.

 

That test has not happened yet.

 

What This Really Represents

For most of crypto’s history, the industry has talked about changing finance while mostly building parallel systems that sit off to the side.

 

Bermuda is trying something different. It is asking whether blockchain infrastructure can simply become part of how an economy runs, quietly and without much fanfare.

 

It might work. It might not.

 

Either way, it pushes the conversation forward in a way few announcements do.

Coinbase Draws a Line in the Sand on Market Structure Bill

 

Coinbase is stepping back from Washington’s biggest crypto push yet.

Just days before a crucial vote in the Senate Banking Committee, the largest US crypto exchange says it will not support the Senate’s sweeping crypto market structure bill in its current form. The message from Coinbase CEO, Brian Armstrong, is blunt. Regulatory clarity matters, but not at any cost.

The move highlights a growing divide between lawmakers eager to lock in federal rules and an industry increasingly wary of legislation that could reshape its business in unintended ways.

 

A Bill Meant to End the Gray Area

The Senate bill, months in the making, is designed to finally spell out how digital assets are regulated in the United States. At its core, the proposal tries to answer long-standing questions about which crypto assets fall under securities law, which should be treated as commodities, and how oversight should be split between regulators.

For years, crypto companies have complained that the lack of clear rules has pushed innovation offshore and left firms vulnerable to enforcement actions after the fact. On paper, this bill is supposed to fix that.

But as the text has taken shape, it has also picked up provisions that some in the industry see as deal-breakers.

 

Stablecoin Rewards Become the Flashpoint

For Coinbase, the biggest problem sits with stablecoins.

The draft legislation includes language that could sharply limit or effectively eliminate rewards paid to users who hold stablecoins on platforms like Coinbase. These rewards are not technically interest paid by issuers, but incentives offered by exchanges and intermediaries. Still, critics argue they look and feel a lot like bank deposits, without bank-style regulation.

Traditional banking groups have pushed hard for tighter rules here. Their concern is straightforward. If consumers can earn yield on dollar-pegged crypto tokens outside the banking system, deposits could drain from insured banks, particularly smaller ones.

Coinbase sees it differently. Stablecoin rewards have become a meaningful part of how crypto platforms compete and how users engage with dollar-based crypto products. Cutting them off, the company argues, would harm consumers and hand an advantage back to traditional finance.

In private and public conversations, Coinbase executives have made it clear that they are unwilling to back a bill that undercuts what they view as a legitimate and already regulated product.

"After reviewing the Senate Banking draft text over the last 48 hours, Coinbase unfortunately can’t support the bill as written,” Armstrong said. "This version would be materially worse than the current status quo, we'd rather have no bill than a bad bill."

 

Why This Matters Beyond Coinbase

Coinbase’s stance carries weight. It is one of the most politically active crypto companies in Washington and often serves as a bellwether for broader industry sentiment.

If Coinbase is out, others may quietly follow.

That raises the risk that lawmakers end up with a bill that lacks meaningful industry buy-in, or worse, one that passes but leaves key players unhappy enough to challenge or work around it.

Some firms are already exploring alternatives, including banking charters or trust licenses, as a hedge against restrictive federal rules. Others may simply slow US expansion and look overseas.

 

A Narrow Path Forward in the Senate

The timing is not ideal.

The Senate Banking Committee is expected to vote on the bill imminently, but support remains fragile. Lawmakers are divided not just on stablecoins, but also on how to handle decentralized finance, custody rules, and even ethics provisions tied to political exposure to crypto.

Add in election-year politics, and the window for compromise looks tight.

If the bill stalls or fails in committee, there is a real chance it gets pushed into the next Congress. That would mean at least another year, and likely more, of regulatory uncertainty.

 

No Law vs a Bad Law

Behind the scenes, a familiar argument is playing out.

Some in Washington believe that imperfect legislation is better than none at all. The industry, scarred by years of enforcement-first regulation, is no longer convinced.

Coinbase’s decision reflects a growing view among crypto companies that a flawed law could do more long-term damage than continued ambiguity. Once rules are written into statute, they are far harder to undo.

For now, the standoff continues.

 

Whether lawmakers soften the bill to keep major players on board or push ahead regardless may determine not just the fate of this legislation, but the shape of US crypto regulation for years to come.

 

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Coinbase has sued Connecticut, Michigan, and Illinois today, but it does not look like a typical regulatory skirmish. On the surface, it was about a few cease-and-desist orders targeting prediction market contracts. In practice, it put a much bigger question on the table. What exactly are prediction markets supposed to be?

Are they casinos in disguise, digital poker rooms with better UX, or a new kind of financial market that belongs under federal oversight?

The answer matters, because the wrong classification could freeze a fast-growing corner of finance in legal limbo.

 

Why Coinbase Is Taking States to Court

The states argue that Coinbase’s prediction markets amount to illegal gambling. Users put money down on outcomes. Some win, some lose. No state gambling license, no approval.

Coinbase sees it very differently. These contracts, the company argues, are event-based derivatives. They look like futures, trade like futures, and are already subject to federal commodities law. The Chief Legal Officer for Coinbase, Paul Grewal, stated in an X post on Friday that the company filed the lawsuits to "confirm what is clear" and that prediction market should fall under the jurisdiction of the U.S. Commodity Futures Trading Commission.

If states are allowed to regulate these markets anyway, the logic goes, national liquidity disappears. A market that works in one state but not another stops being a market at all. But, there are comparisons to existing gambling laws and we broke those down for you.

 

The Casino Comparison Only Goes So Far

State regulators tend to reach for the casino analogy first, and it is easy to see why. There is money at risk. Outcomes are uncertain. The optics are not subtle.

But structurally, prediction markets do not behave like casinos. Casinos set the odds. The house always wins over time. The product is entertainment.

Prediction markets do not work that way. Prices are set by participants. New information moves markets. There is no built-in house edge. The value comes from aggregating beliefs into a number that says something useful about the future.

Calling that gambling because it involves money is a shortcut, and not a very precise one.

 

Poker Explains the Skill Argument, and Its Limits

Poker is the comparison that usually comes next. Courts have spent years debating whether poker is mostly luck or mostly skill. Many have concluded that skill dominates over time, even if chance plays a role in the short run.

Yet poker is still regulated as gambling in most places. Not because it lacks skill, but because the law never quite figured out where else to put it.

That history matters. It shows how activities that clearly reward information and decision-making can still end up trapped in gaming frameworks that were built for something else entirely.

Prediction markets risk repeating that mistake. Like poker, they reward skill. Unlike poker, they are not games. They are continuous markets with prices, liquidity, and arbitrage. Treating them like a card room because money changes hands misses the point.

 

Why Prediction Markets Look Like Futures Markets

If you strip away the cultural baggage, prediction markets start to look familiar. They are standardized contracts tied to future outcomes. Prices reflect probability. Traders respond to data.

That is the same basic logic behind futures contracts tied to interest rates, inflation, or commodities. Those markets involve speculation, risk, and uncertainty too. They are regulated, but they are not treated as gambling.

This is where Coinbase’s argument lands. Congress already created a regulator for markets like this. The CFTC exists to oversee contracts that trade future outcomes, including event-based ones. The fact that an outcome is an election or a policy decision does not change the structure of the market.

 

What Changes If Coinbase Wins

If Coinbase wins, the impact goes well beyond these three states.

First, jurisdiction becomes clearer. States would no longer be able to regulate federally governed prediction markets simply by labeling them gambling. That alone would remove one of the biggest sources of uncertainty hanging over the industry.

Second, the casino argument loses legal weight. Courts would be acknowledging that uncertainty plus money does not automatically equal gambling, especially when prices are discovered through open trading rather than set by an operator.

Third, prediction markets would finally escape the poker problem. They would not sit in a gray zone where skill is recognized but regulation never quite fits. Instead, they would fall under a framework designed for markets, not games.

With that clarity, these markets could scale. Liquidity would deepen. Institutional participants could step in. Contracts tied to economic data, climate outcomes, and corporate milestones could expand without the constant risk of state-level shutdowns.

Over time, prediction markets could start to look less like a regulatory headache and more like infrastructure. Another tool, alongside surveys and models, for figuring out what the world might do next.

 

A Bigger Signal About Regulation

This case is not really about Coinbase. It is about whether U.S. regulation can adapt when finance starts to blur into something new, a question that has stifled digital asset growth for years.

Casinos deal in chance. Poker deals in skill inside a gaming framework. Futures markets deal in information. Prediction markets belong in the third category, even if they make people uncomfortable.

If courts agree, it would send a signal that regulation can still be about function rather than analogy. That is not a radical idea. It is how most financial markets came to exist in the first place. Prediction markets are here to stay. We've seen huge partnerships with major media news outlets and exchanges. The regulatory details need to be clearly defined for this emerging industry.

 

And if that happens, prediction markets may finally stop being debated as gambling, and start being treated as what they have been trying to become all along. Markets that trade in probabilities, under rules built for markets, not casinos.

 

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Coinbase and Morpho Team Up: Borrow Up to $1 Million Against ETH

Coinbase has launched a major upgrade to its crypto-lending services, enabling U.S. users (excluding New York residents) to borrow up to $1 million in USDC using their Ethereum as collateral. This capability is powered by Morpho Labs’ on-chain lending infrastructure, and it represents an important step toward mainstream access to decentralized finance (DeFi) via a trusted exchange.

The initiative ties together four critical trends: demand for liquidity without selling crypto, institutional-grade DeFi infrastructure, user-friendly platforms, and evolving regulatory comfort around crypto-backed loans.

 

How the Offering Works

• Borrowers pledge Etherum (ETH) which is converted into Coinbase Wrapped Ethereum (cbETH) on Base, Coinbase’s layer-2 blockchain. The cbETH is then deposited into a Morpho smart contract as collateral.

• In exchange, users receive USDC in their Coinbase account almost instantly. The loan product is integrated directly into the Coinbase mobile app, removing the user-experience friction common in traditional DeFi protocols.

• The maximum borrowing amount stands at $1 million USDC per user, depending on collateral value and eligibility.

• There are no fixed repayment schedules or deadlines—borrowers can repay any time. The key constraint is maintaining a healthy loan-to-value (LTV) ratio. If the outstanding loan amount including interest reaches approximately 86% of the collateral’s value, the position can be liquidated.

• Rates are variable and determined by the open lending market on Morpho, and as part of Coinbase’s interface the process is designed to feel familiar to users of mainstream financial apps.

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Strategic Significance

Unlocking Liquidity Without Selling

A major advantage of this offering is that users retain exposure to their underlying crypto holdings while accessing cash liquidity. This can help avoid tax-triggering events that might come from selling crypto assets, while still unlocking value for things like down payments, major purchases, or diversifying other investments.

DeFi Infrastructure Meets Mainstream Exchange

Coinbase is leveraging Morpho’s protocol layer so that the decentralized lending infrastructure handles execution and risk, while Coinbase manages the user interface, onboarding, and regulatory overlay. This model blends DeFi innovation with the user experience and brand trust of a regulated exchange.

Regulatory Evolution and Risk Management

Crypto-backed loans have a checkered history, with industry failures in recent years (for example, centralized lenders filing for bankruptcy). This time, Coinbase and Morpho appear to be building with lessons learned: a trusted exchange interface, modern risk controls, transparent collateral mechanics, and clear liquidation thresholds. The exclusion of New York is a nod to continuing regulatory variations across jurisdictions but demonstrates broader U.S. availability.

 

What the Data and Context Reveal

• Morpho reports that its protocol supports billions in locked liquidity and has enabled institutions and exchanges to offer lending services in a modular, compliant way.

• One source places the collective crypto-backed loan market at over $1 billion already in a short period, driven by this Coinbase-Morpho product and similar initiatives.

• Earlier versions of Coinbase’s lending offering were closed suddenly amid regulatory issues, so this relaunch signals renewed confidence in design, oversight, and market timing.

• The Base blockchain integration gives the service lower cost, faster transactions and more seamless experience compared to older DeFi on-ramps, improving accessibility for mainstream users.

 

Risks and Considerations

• Volatility risk: If Ethereum’s price drops significantly, borrowers may face liquidation if the collateral value falls and the loan-to-value ratio breaches thresholds.

• Liquidity and contract risk: While Morpho is audited and established, smart contract protocols always carry some risk of bugs, hacks or operational failure.

• Regulatory change: Although the product is live, evolving regulation in the U.S. could alter lending terms, disclosure obligations or tax treatments tied to crypto-backed loans.

• Cost of borrowing: Rates are variable and market-driven; high demand or collateral stress could increase borrowing costs unexpectedly.

• User experience vs. risk exposure: The seamless interface may mask underlying complexity; users still need to monitor LTV, collateral status and market conditions.

 

Implications for Crypto and Finance

• The introduction of high-limit crypto-backed loans via a mainstream exchange opens the door for wealthy and institutional crypto holders to access large liquidity without asset sales, blurring lines between traditional finance and DeFi.

• This offering may accelerate use cases where holding crypto is strategic (for tax or value appreciation reasons) while accessing fiat liquidity for spending, investing or diversification.

• If this model succeeds, more exchanges may follow, and lending protocols may become core infrastructure rather than niche DeFi tools—potentially reshaping the financial profile of crypto markets.

 

Final Thoughts

Coinbase’s collaboration with Morpho to offer up to $1 million in USDC loans backed by Ethereum is more than a product launch. It is a signal that crypto infrastructure is maturing from experimental protocols to user-friendly, high-scale financial services.

For crypto holders, it offers a new pathway to liquidity without sacrificing exposure. For the broader market, it shows that DeFi protocols and mainstream exchanges can integrate to deliver real-world services.

The key will be execution, risk control, user adoption and regulatory acceptance. If all elements align, this could mark a pivotal moment where crypto-native finance moves into mainstream modes and the borrowing-against-assets model becomes widely accessible.

 

Stay tuned as this space evolves, products like this may become standard components in how we finance, borrow and invest in the crypto age.

 

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Coinbase Launches Token-Sale Platform with Guardrails to Avoid ICO Chaos

Coinbase has rolled out a new token-sale platform designed to provide retail investors with access to early-stage crypto projects under a regulated framework. The initiative aims to revive public token offerings in a safer, more transparent manner while restoring trust in token sales.
According to the company’s announcement the platform will host roughly one token sale per month. The first offering featured Monad, a high-performance blockchain startup.
Participants will use USD Coin (USDC) to purchase tokens. Token allocations are determined via an algorithm rather than a first-come, first-serve mechanism. Project teams and affiliated insiders will be prohibited from selling their tokens for six months after the public sale in order to reduce speculative flipping.

 

Key Features of the New Platform

Algorithmic Allocation

Unlike many of the chaotic ICOs of the past the platform will compile purchase requests during a one-week submission window. After that the algorithm will determine allocations with the goal of broad and equitable participation. Small investors will be given a fair chance rather than being crowded out by big players.
Payments must be made using USDC and participants must complete identity verification and compliance checks in good standing with Coinbase.

Token Issuer Restrictions

Project teams, founders and affiliated parties will be barred from selling any tokens—whether private or publicly traded—for at least six months following the public sale on Coinbase. This lock-up provision is intended to align incentives between founders and public investors and avoid immediate dump scenarios.

Disclosure and Pricing Transparency

Issuers will be required to submit detailed disclosures covering tokenomics, vesting schedules and distribution mechanics. These documents will be publicly available providing prospective buyers clarity on what they’re purchasing and how the project is structured. The platform also plans to further develop features like limit orders, automatic reinvestment options and issuer-specific eligibility criteria.

 

Strategic Context and Rationale

Learning from the 2017-2018 ICO Boom

During the 2017 ICO surge thousands of projects raised capital via token sales with minimal oversight. Many lacked product roadmaps, operated without regulatory compliance and ended in large losses or scams. This new Coinbase platform seeks to avoid that history by embedding regulatory controls and design features to reduce speculative excess.
The algorithmic allocations, lock-up periods and rigorous issuer criteria reflect this change.

Retail Access Meets Institutional Standards

Previously early-stage token participation was largely reserved for venture capital and accredited investors. Coinbase’s platform opens this market to retail investors under a regulated process tied to its existing infrastructure and compliance regime. In addition Coinbase has made strategic acquisitions including token issuance platform Liquifi and capital-formation platform Echo which strengthen its ability to manage token launches, compliance and cap-table operations.

Diversification of Business Model

For Coinbase the token-sale platform represents a growth avenue beyond trading fees. By hosting early-stage token launches and integrating token issuers earlier in their lifecycle the exchange can deepen user engagement, expand its product suite and capture new revenue models as the crypto capital-formation market evolves.

 

Potential Benefits and Market Implications

• Increased participation and democratization: Retail users gain more equitable access to early token launches.

• Improved token quality and credibility: Issuers undergo vetting and lock-ups promoting longer-term alignment.

• Competitive pressure on other exchanges: Coinbase may set a new standard for token launches under regulatory guardrails.

• Boost to on-chain fundraising: The platform could catalyze a revival of public token offerings with better structure and oversight.

• Enhanced secondary market liquidity: With tokens launching via Coinbase’s funnel, listings and liquidity may improve for projects post-sale.

 

Risks, Challenges and Watch-Points

1. Volume vs quality trade-off: If offerings are too restrictive it may limit deal flow or cause frustration among issuers seeking speed and capital.

2. Regulatory land-mines: Token sales remain subject to securities laws classification and regulatory enforcement. Any misstep on issuer vetting or investor protections could prompt scrutiny.

3. Scalability of governance and infrastructure: As the platform hosts more sales maintaining the rigor of disclosures, lock-up enforcement and user fairness will be operationally demanding.

4. Market sentiment and speculation: Even with guardrails speculative behavior could still dominate new token launches, possibly recreating volatile market dynamics.

5. Issuer reputation risk: Early failures or token launches that under-perform could damage the platform’s credibility and the broader token-sale model.

 

What to Watch Next

• The performance and user-feedback of the first offering from Monad and how secondary trading unfolds.

• Timeline for subsequent sales and how frequently the platform opens slots.

• Additional features announced such as limit orders, reinvestment tools and issuer custom-allocations.

• Regulatory responses—whether U.S. agencies view the platform model as compliant or require additional oversight.

• Impact on the broader token-launch ecosystem—whether rivals adopt similar models or the industry shifts toward more regulated public sales.

 

Final Thoughts

 

Coinbase’s token-sale platform represents a meaningful step toward the institutionalization of crypto capital-formation. By introducing algorithmic allocations, issuer lock-ups and strong disclosure standards the exchange is attempting to reboot public token launches in a way that avoids the chaos of the ICO boom.
For retail investors it offers a structured opportunity to access early-stage crypto projects. For issuers it provides regulated access to a large investor base under Coinbase’s brand and infrastructure.
Ultimately the success of this initiative will depend on execution, project quality and market reception. If Coinbase can maintain disciplined rollout while delivering compelling token offerings this could set a new paradigm for how tokens are issued, sold and listed in the next phase of crypto.
The next few token sale cycles will tell whether this is merely a novelty or a foundational shift in how crypto projects raise capital and engage with the public.

 

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Coinbase and Citi Join Forces to Advance Stablecoin Payments for Institutions

A new chapter in institutional digital asset adoption and payment innovation

In a significant step for the convergence of traditional finance and crypto, Citigroup and Coinbase have partnered to explore digital payment solutions using stablecoins and blockchain infrastructure for Citi’s corporate and institutional clients. This collaboration highlights how digital assets are shifting from speculative use to becoming core financial tools.

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What’s Happening

Citigroup and Coinbase are working together to develop digital asset payment capabilities for Citi’s institutional clients. The initiative focuses on simplifying fiat-to-crypto conversions, enabling payouts through stablecoins, and supporting faster, cheaper cross-border transactions using blockchain technology.

For Coinbase, this partnership represents another step in its expansion beyond retail crypto trading into enterprise-grade financial infrastructure. For Citi, it reflects an ongoing commitment to digital innovation, with efforts in stablecoin issuance, tokenized deposits, and blockchain settlement systems.

This partnership is not just about crypto payments. It is about transforming how large financial institutions handle liquidity, treasury operations, and settlement in a global economy that increasingly values speed and transparency.

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Why This Matters

1. Digital Assets Move Toward the Financial Mainstream

Just a few years ago, most major banks treated digital assets cautiously. Now, one of the world’s largest banks is partnering with a leading crypto exchange to bring stablecoins into its payments network. This shows that digital assets are maturing into real financial infrastructure.

2. Stablecoins Gain Institutional Utility

Stablecoins are evolving beyond their original use in trading and DeFi. They are now being used for corporate payments, treasury management, and international settlements. Citi and Coinbase are helping push this transition, turning stablecoins into practical tools for global finance.

3. Payment Systems Get a Modern Upgrade

Traditional payment networks can be slow and expensive, often operating only during business hours. Stablecoin transactions on blockchain networks are fast, borderless, and available 24/7. For institutions, that means better liquidity management and reduced friction in cross-border transactions.

4. Banks Are Embracing Partnerships Over Isolation

Rather than developing everything internally, banks like Citi are forming partnerships with crypto-native firms that already understand blockchain technology and digital infrastructure. This approach combines the scale and regulatory experience of traditional banks with the innovation and speed of crypto companies.

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The Bigger Picture: Why Now

Several industry and regulatory trends make this collaboration especially timely:

• Regulatory Clarity: Governments and financial authorities are providing more defined frameworks for stablecoins, making it easier for banks to adopt them responsibly.

• Stablecoin Growth: Industry research suggests that stablecoins could become a multi-trillion-dollar asset class by the end of the decade, transforming how global businesses move money.

• Pressure to Innovate: Legacy payment systems are under increasing pressure to modernize. Banks that adopt blockchain rails early will have a competitive advantage in speed and cost efficiency.

• Partnership-Driven Innovation: The financial world is realizing that collaboration with crypto-native companies is faster and more efficient than building new systems alone.

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Challenges and What to Watch

While the partnership is promising, several challenges lie ahead:

• Scalability: Turning small pilot projects into large-scale enterprise systems will require significant integration with existing banking infrastructure.

• Compliance: Even with clearer regulations, stablecoin payments must meet strict requirements for anti-money-laundering controls, reserves, and audits.

• Revenue Impact: If blockchain-based payments significantly reduce transaction costs, banks will need to rethink existing fee structures and profit models.

• Interoperability: Connecting blockchain rails with legacy systems introduces technical and security complexities that must be addressed.

• Global Consistency: Citi operates across many jurisdictions, and stablecoin adoption depends on how each region’s regulators treat digital assets.

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The Future of Institutional Payments

The collaboration between Coinbase and Citi marks an important moment in the evolution of digital payments and finance. Stablecoins are no longer just a crypto experiment. They are being recognized as real financial instruments that can enhance efficiency, reduce costs, and streamline settlement for global institutions.

This partnership shows the growing alignment between traditional finance and decentralized technology. As more banks and crypto platforms work together, the boundaries between the two worlds are fading. The next era of payments may be powered by stablecoins and tokenized assets, operating on blockchain rails that never sleep.

 

If successful, the Coinbase–Citi partnership could pave the way for faster global payments, smarter liquidity management, and a more inclusive financial system. The message is clear: the future of money is programmable, and institutions are already laying the groundwork to make it real.

 

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Coinbase Launches AI-Ready Crypto Payments Protocol, Paving the Way for Autonomous Finance

Coinbase has unveiled a major new initiative: a payments protocol that enables artificial intelligence agents to hold wallets and send stable‐coin payments autonomously. This move marks a meaningful step toward machine-to-machine commerce and could reshape how value moves online.

The protocol, called Payments MCP, builds on the earlier x402 standard and allows AI systems from major providers to open wallets, receive funding and complete stable‐coin transfers without human input. Coinbase states that this represents a new frontier in digital payments — one where software becomes an economic actor, not just a tool.

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What the Protocol Does and Why It Matters

Payments MCP integrates with large language models and AI systems such as those from leading AI companies. It lets agents create wallets, execute payments in stablecoins (like USDC) and interact with on-chain infrastructures while enforcing compliance controls and spending limits.

For example, an AI agent could pay for cloud services, API access or digital content automatically based on consumption. Through this protocol, the underlying blockchain becomes an operational layer for autonomous finance, not just a ledger for human transactions.

This development comes at a time when global tech companies are merging AI with blockchain. Goldman analysts say that stable-coins may serve as the fuel for agent-based commerce, and firms such as Google have introduced open-source frameworks around AI payments that involve Coinbase’s infrastructure. These collaborations underscore the potential scale and strategic importance of this innovation.

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Why This Shift Is Significant

Enterprise-Grade Digital Economy

By enabling AI agents to transact with wallets and stablecoins, Coinbase is helping create a financial infrastructure suited for modern software ecosystems. Expense payments, vendor services and subscription models could all become automated-first rather than human-first.

Crypto Broader Than Trading

This protocol moves crypto beyond speculation and token trading into real-world utility. Stablecoins and payment rails become tools for software, apps and AI flows — opening new use cases and revenue models in the digital economy.

Accelerating Standards and Interoperability

The creation of open protocols like x402 and Payments MCP signals that crypto firms are building foundational infrastructure for the next Internet wave. These tools lay down standards that are interoperable, scalable and ready for enterprise adoption.

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What to Watch Going Forward

• Adoption rate: How many AI platforms and enterprise software providers integrate MCP or x402 protocols in 2026 and beyond.

• Regulatory clarity: How governments respond to autonomous value transfers between agents and how compliance frameworks evolve.

• Stable-coin use cases: Whether stablecoins really become the native “fuel” for agentic finance and how firms build around that.

• Game-changing applications: Which early use-cases emerge—agent-based micro­payments, cloud resource payments, autonomous vendor services.

• Network effects: Whether this infrastructure leads to an ecosystem where agents, wallets and services interoperate seamlessly at scale.

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Final Thoughts

Coinbase’s launch of an AI-powered payments protocol represents a bold step toward an autonomous, software-driven economy. By enabling AI agents to transact with wallets and stablecoins, the firm is pushing crypto technology into new territory—beyond human transactions and into autonomous finance.

 

For the crypto sector this is a signal that blockchain infrastructure is evolving from niche token swaps into foundational payment rails for AI, software and Web3 systems. The future of value transfer may not just involve people, it may involve software acting independently—and Coinbase is at the forefront.

Coinbase Global has entered into an agreement to acquire Echo for approximately $375 million, a deal made in a combination of cash and stock. Echo is a blockchain-based investment platform that enables crypto startups and token-based projects to raise capital through private and public token sales.

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What Echo Brings to the Table

Founded by crypto influencer and trader Jordan Fish, better known as “Cobie,” Echo has rapidly grown in the crypto startup funding space. Its platform has helped projects raise more than $200 million across roughly 300 deals.

Echo offers two major fundraising modes:

• Private token raises for selected investors.

• Public token sales via its Sonar product, enabling broader community access.

This dual approach positions Echo as a full-stack capital formation platform for crypto startups — from raising funds to launching tokens.

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Why Coinbase Is Making the Move

For Coinbase, the acquisition is part of a broader ambition to expand beyond being solely a trading platform. The deal reflects several strategic goals:

• Capital-raising infrastructure: By acquiring Echo, Coinbase gains direct access to the infrastructure that allows projects to fundraise on-chain and later trade tokens in secondary markets.

• Expanded services: Coinbase intends to serve both investors and early-stage projects, creating a one-stop shop for launching, funding and trading.

• Ecosystem growth: Echo’s on-chain fundraising model supports Coinbase’s push into tokenized securities and real-world assets, areas identified as growth drivers.

• Acquisition strategy: The deal is part of an ongoing series of acquisitions, reflecting an aggressive strategy to expand Coinbase’s role in crypto infrastructure.

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Potential Impact and Key Considerations

Impact

• For startups: Easier access to capital through Coinbase’s global reach and brand reputation.

• For investors: Potential to access token sales and new asset classes in a secure and regulated environment.

• For Coinbase: Broader user engagement, diversified revenue streams, and a stronger position in the ecosystem.

Considerations

• Execution risk: Integration of Echo’s model into Coinbase’s platform will require careful execution.

• Regulation: Token sales and tokenized securities face ongoing regulatory scrutiny, which could shape how the service operates.

• Competition: Other platforms also offer fundraising services, raising questions about how much advantage Coinbase will gain.

• Integration workload: Combining Echo’s systems with Coinbase’s compliance and infrastructure will take time and resources.

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What This Means for the Industry

The acquisition highlights broader trends in crypto:

• On-chain capital formation is becoming a mainstream strategy, bridging the gap between venture funding and community token sales.

• Exchanges are evolving into full-stack financial service providers, covering fundraising, investment, and trading.

• Ecosystem-building through developer support and early-stage funding is now central to major crypto firms’ growth strategies.

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Conclusion

 

Coinbase’s acquisition of Echo for $375 million is a significant milestone in the evolution of crypto finance. For Coinbase, it strengthens its position as more than just an exchange, aligning it with a future where raising capital, launching tokens, and trading all occur seamlessly on-chain. For startups and investors, it promises expanded opportunities — though success will depend on execution, regulatory clarity, and market adoption.

Coinbase has officially placed BNB (Binance Chain’s native token) onto its asset roadmap, signaling that a future listing is under consideration. At the same time, the exchange is caught in a growing industry dispute over whether centralized exchanges charge hidden listing fees—despite public claims of fee-free listings.

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What Coinbase’s BNB Addition Means

Coinbase’s new roadmap entry for BNB suggests the exchange is shifting closer to the Binance ecosystem, expanding cross-chain asset access. The move aligns with Coinbase’s recent “Blue Carpet” listing framework, which aims for more transparent, merit-based asset onboarding.

BNB’s inclusion may also bring fresh trading volume, liquidity, and user demand to Coinbase, especially as institutional and retail interest in chain interoperability continues to rise.

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The Listing Fee Controversy

Despite Coinbase’s assertion that token listings are free, several industry figures have challenged that statement. Andre Cronje of Sonic Labs claims his projects were quoted tens to hundreds of millions in “listing or financing demands” from Coinbase. In contrast, Binance has been accused less frequently, with some claiming it imposes zero fees for listings.

These conflicting perspectives have ignited a broader debate: are “free listings” just marketing, or is there a real cost — whether in tokens, “marketing support,” or required deposits — behind the scenes?

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Coinbase’s Transparency Push

To address concerns, Coinbase recently published a public listing roadmap that clarifies which assets are under review, which criteria apply, and how decisions are made. This framework aims to reduce speculation, discourage insider leaks, and bring more fairness to the listing process.

Still, critics argue the roadmap’s existence does not guarantee uniform treatment. Smaller or newer projects may struggle to meet the high compliance and technical bar, regardless of the stated transparency.

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Why This Matters

• Cross-chain growth: Listing BNB could accelerate bridging, utility, and user migration across Binance and Ethereum ecosystems.

• Market dynamics: BNB’s arrival at Coinbase may shift liquidity, trading pairs, and user behavior.

• Industry pressure: The listing fee row places exchanges under scrutiny to improve accountability.

• Competitive signaling: Coinbase’s roadmap and listing decisions may push competitors to match transparency or reevaluate fee policies.

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Bottom Line

 

Coinbase’s decision to consider BNB for listing is a bold strategic move in the evolving crypto landscape. But more than that, it surfaces tension between public claims and hidden practices in how exchanges decide which assets to support. Transparency, equity, and market access are back in the spotlight — and Coinbase’s actions now will shape how the next wave of token listings is handled.

Crypto asset management and background

 

 

Crypto asset management refers to the management and investment of digital assets within the cryptocurrency ecosystem. It involves applying traditional investment tools and strategies to the crypto market in order to build institutional-grade products for investors. Marcel, the deputy CIO of Coinbase Asset Management, provides insights into this field during the That's Rare Podcast.

Marcel's background is diverse and impressive, starting with his passion for mathematics. However, he realized that pure mathematics was not his calling and shifted his focus to finance. He began his career at the Bank of Canada, where he gained valuable experience in the financial industry. He then moved on to work at Goldman Sachs, where he further honed his skills and expanded his network.

The most significant turning point in Marcel's career came when he joined Soros Fund Management. Working closely with George Soros himself, Marcel experienced a period of intense learning and growth. He was exposed to major global events, such as the China revaluation, financial crisis, and peak oil, which provided him with invaluable insights into the intricacies of the financial world.

 

During this time, Marcel also co-founded two successful macro hedge funds, which raised significant assets and delivered alpha to investors. His expertise in macro investing and his ability to navigate complex market conditions contributed to his success.

In 2021, Marcel joined OneRiver Digital, marking his entry into the world of crypto asset management. His interest in cryptocurrencies began earlier when he stumbled upon an article on crypto while working as a visiting scholar at the IMF. Intrigued by the asset class, he started delving deeper into it and eventually made it a dominant portion of his portfolio.

 

Marcel approaches crypto asset management from a macro perspective, leveraging his background in finance and his experience in traditional markets. However, he acknowledges the importance of a diverse team with expertise in various aspects of the crypto industry. This eclectic team at Coinbase Asset Management brings together different perspectives and skills to deliver innovative investment products.

 

The podcast highlights the exciting work being done at Coinbase Asset Management, with Marcel describing their efforts as building a "Ferrari" during the crypto winter. They have developed various investment strategies, including trend, credit, index, and option strategies, all tied to digital rails. Marcel and his team are ready to drive this "Ferrari" and provide investors with compelling opportunities in the crypto market.

 

Overall, Marcel's background and experience in traditional finance, coupled with his foray into crypto asset management, position him as a valuable contributor to the field. His journey exemplifies the growing importance of crypto assets and the need for skilled professionals who can navigate this evolving landscape.

 

 

Building infrastructure for DeFi

 

 

Building infrastructure for DeFi, or decentralized finance, is a crucial step in the development and adoption of this emerging financial ecosystem. DeFi aims to provide financial services and products on a decentralized network, without the need for intermediaries such as banks or traditional financial institutions. This podcast provides insights into the process of building infrastructure for DeFi and the principles that guide this endeavor.

 

The podcast begins by highlighting the importance of learning through mistakes and overcoming the fear of failure. Marcel emphasizes that the current education system and societal expectations often discourage failure and prioritize academic achievements. However, he argues that learning from mistakes and admitting them is essential for growth and development. This mindset is crucial in the context of building infrastructure for DeFi, as it requires experimentation and innovation.

 

We then shift to discuss the institutional level of building infrastructure for DeFi. Marcel mentions that they determined that the infrastructure was not ready initially. However, during a period referred to as "crypto winter," when the cryptocurrency market experienced a significant downturn, the team saw an opportunity to build. This highlights the importance of timing and seizing opportunities in the crypto market.

 

Marcel mentions that they took the lead in communicating and ensuring that people knew they were still active in the field. They also focused on building a team of portfolio managers and developing infrastructure for both credit and trend analysis. Building infrastructure for DeFi is not a simple task, as it requires a different approach to risk management and technological development.

The podcast then delves into the specific principles that guided the team in building infrastructure for DeFi. One principle is to work with regulators and establish a permission layer that complies with regulatory standards. This approach seeks to give regulators control over the permission layer while allowing for innovation and development on the public blockchain. This demonstrates the importance of collaboration between the DeFi industry and regulators to ensure compliance and long-term sustainability.

 

Another principle mentioned is the balance between privacy and anonymity. While privacy is paramount, anonymity is deemed a non-starter for scaling into the regulatory mainstream. This highlights the challenges of maintaining privacy in a digital environment while adhering to regulatory requirements. Striking a balance between privacy and regulatory compliance is crucial for the success and adoption of DeFi.

 

The podcast transcript concludes by briefly mentioning the team's collaboration with Coinbase, a prominent cryptocurrency exchange. The details of this collaboration are not elaborated upon in the transcript, but it suggests the importance of partnerships and collaborations in building infrastructure for DeFi.

 

In conclusion, building infrastructure for DeFi is a complex and multifaceted process that requires a deep understanding of technological, regulatory, and market dynamics. This podcast transcript provides insights into the principles and considerations involved in this endeavor. It emphasizes the importance of continuous learning, collaboration with regulators, and striking a balance between privacy and regulatory compliance. Building infrastructure for DeFi is crucial for the growth and adoption of this emerging financial ecosystem, and it requires skilled professionals who can bridge the gap between traditional finance and the world of crypto assets.

 

Opportunity is subtle, Coinbase acquisition

One of the key themes discussed during the That's Rare Podcast is the concept that "opportunity is subtle." Marcel highlights the misconception that opportunities will present themselves in an obvious and overt manner, when in reality, they often come in the form of a gentle knock at the door. The speaker emphasizes that individuals must be engaged, work hard, and be open to recognizing and seizing these subtle opportunities.

 

The podcast also touches on the acquisition of the One River Digital by Coinbase, a well-known and respected platform in the cryptocurrency space. Marcel expresses their excitement and gratitude for being acquired by Coinbase, stating that they have been a client of the platform for a significant period of time. They emphasize that Coinbase is an excellent platform to build upon and that they couldn't ask for a better foundation for their project, referred to as "Project Diamond."

 

The discussion then moves on to the integration of a layer two solution, referred to as "base," into Project Diamond. Marcel describes base's successful rollout during the on-chain summer and explains that integrating it into their project provides a complete stack for an on-chain marketplace. They highlight their leadership position in areas such as account abstraction and ZK Rollups, emphasizing the scalability and low cost of their platform, which they believe can cater to the needs of eight billion people.

Marcel mentions their regulatory partner in Abu Dhabi, stating that they have received preliminary regulatory approval within the Abu Dhabi Global Market (ADGM). This partnership has opened up many doors for their project and has contributed to the development of their complete stack. The speaker expresses excitement about the potential of their project and its ability to scale globally.

 

The conversation then shifts to the role of USTC (United States Trade Control) in the project. The speaker acknowledges that USTC is a part of the project and highlights its importance in ensuring regulatory compliance. They express a desire to dive deeper into the regulatory scene in Abu Dhabi and Dubai, emphasizing the openness and excitement in these regions and their potential to set an example for the rest of the world.

 

The podcast sheds light on the subtle nature of opportunities and the importance of recognizing and seizing them. It also highlights the significance of the Coinbase acquisition and the integration of base into Project Diamond, providing a complete stack for an on-chain marketplace. The speaker's excitement about their regulatory partner in Abu Dhabi and the potential of their project to scale globally is evident. Overall, this transcript provides valuable insights into the principles and considerations involved in building infrastructure for DeFi.

 

Tokenizing assets for regulatory approval

Tokenizing assets for regulatory approval is a complex process that requires careful planning and collaboration. This podcast reveals the steps involved in finalizing regulatory approval for tokenized assets and emphasizes the importance of regulatory partnerships. Mr. Kasumovich acknowledges that every step taken in the tokenization process will be subject to regulatory approval, highlighting the need for a close working relationship between regulators and industry players.

 

We discusses the flexibility and versatility of tokenization, particularly in the context of digitally native assets. Marcel mentions that they can choose to tokenize different types of assets based on their preferences, such as intellectual property, food security, or debt instruments. This flexibility allows for customization and tailoring of tokenized assets to meet specific needs and objectives.

Furthermore, we touch upon the concept of fungibility in tokenization. Marcel explains that while assets can be tokenized both on-chain and off-chain, they can still be made fungible by ensuring they have the same Q-sips and legal rights. This means that tokenized assets can be traded interchangeably, providing liquidity and ease of transfer.

 

Drawing parallels between the tokenization of assets and the evolution of ETFs and mutual funds. It suggests that tokenization has the potential to revolutionize the financial industry in a similar way, offering improved characteristics and benefits compared to traditional assets. The speaker mentions that tokenizing existing assets may involve duplicating costs, whereas issuing tokens on-chain for higher velocity assets can help in understanding how digital rails work.

 

The transcript highlights the importance of starting with prototypes and learning from them. The speaker mentions the example of a discount note, a short-term debt instrument that trades without a coupon. This prototype allows for a high velocity of transactions and provides valuable data and insights into the functioning of tokenized assets. The involvement of Jay Clayton, the former SEC chair, as an advisor adds credibility and expertise to the project.

Watch The Podcast On YouTube