Category: Cryptocurrency

Mantle Network has advanced its proposal to lend up to 30,000 ETH to Aave’s DeFi United recovery initiative, now moving to a governance vote on Snapshot. MNT holders must delegate their voting power to participate in the decision.

This strategic credit facility, known as MIP-34, aims to address the shortfalls caused by the April 18 rsETH bridge exploit, providing a structured way to manage bad debt and collateral gaps. If approved, Mantle’s treasury will supply the ETH to Aave DAO, specifically for the DeFi United rescue plan.

The loan is structured with a 36-month term and a floating yield based on Lido’s stETH staking return plus a 1% spread, transforming idle treasury assets into a yield-bearing position. Aave DAO would back the facility with 5% of its protocol revenue and at least $11 million in AAVE tokens, while granting Mantle delegated governance rights over roughly 130,000 AAVE to align incentives.

Collateral will be held in a multisig wallet, with early repayment options and default protections to limit Mantle’s risk. Aave founder Stani Kulechov has praised the DeFi United effort as the largest DAO coordination he has participated in, with parallel governance processes at Arbitrum, Aave, EtherFi, Lido, Compound, and Mantle.

The rescue fund under DeFi United has now accumulated 1,137,714.633 ETH, worth approximately $314.57 million, from contributions by multiple DAOs and protocols. Major pledges include Arbitrum DAO’s 30,765 ETH, Mantle’s planned 30,000 ETH loan, AaveDAO’s 25,000 ETH, EtherFi’s 5,000 ETH, Lido’s 2,500 stETH, and personal commitments from Stani and the Golem Foundation.

The goal is to cover an estimated 68,900 to 118,000 ETH shortfall in rsETH’s backing after the KelpDAO bridge exploit, ensuring healthier collateralization across Aave and other lending markets. Legal experts view this as a landmark case of on-chain interventions coordinated across DAOs, with the Mantle-Aave loan testing structured credit facilities in large DeFi rescues.

For affected users, the combination of direct ETH contributions, governance-approved credit lines, and protocol fixes provides more options to exit or restructure positions, avoiding a simple liquidation process.

The CLARITY Act faces a critical deadline on May 21, after which the window for passage may close until 2030. Ripple CEO Brad Garlinghouse emphasized at XRP Las Vegas on April 30 that the current political alignment—with the House, Senate, and White House united on crypto legislation—is exceptionally rare and could dissolve after the midterm elections.

The bill has garnered over 120 supporters, including major firms like Coinbase, Kraken, Circle, and Andreessen Horowitz, along with backing from the White House, SEC Chair Paul Atkins, and Treasury Secretary Bessent. Despite this broad support, the legislative path remains arduous. Senators Cynthia Lummis and Bernie Moreno have independently warned that if the bill doesn’t pass in 2026, the next opportunity won’t arise until 2030.

Several procedural steps must be completed before May 21: a Banking Committee markup, a committee vote, a 60-vote Senate floor threshold, reconciliation between Senate Banking and Agriculture Committee versions, and final reconciliation with the House text from July 2025—all followed by the President’s signature. With the Senate returning on May 11, only about eight working days remain.

The April markup deadline was missed due to the Kevin Warsh confirmation hearings consuming the Banking Committee’s schedule. Now, the compressed timeline leaves little room for delay. Senator Tillis has indicated he will request committee chair Tim Scott to schedule a markup promptly.

Senator Lummis, chair of the Banking Subcommittee on Digital Assets, stressed at the Bitcoin 2026 Conference on April 27 that the simultaneous alignment of all three branches on crypto legislation is unprecedented and fragile. She is not seeking re-election, removing personal political motives from her advocacy. Meanwhile, Mike Novogratz expressed optimism on a recent podcast, suggesting the bill could pass in May, but Galaxy Research places the odds at 50-50 or lower, and Polymarket gives it approximately 46% probability.

The crypto market has been watching the CLARITY Act closely, as its passage could significantly boost institutional adoption. The coming days will determine whether the bill advances or stalls for nearly four years.

The path for interest rate reductions in 2026 has become clouded, according to Minneapolis Federal Reserve President Neel Kashkari. While he previously anticipated one or two cuts later this year, recent geopolitical developments have forced a more measured stance. The escalating conflict with Iran and the resulting surge in oil prices have introduced significant uncertainty into the inflation outlook, prompting Kashkari to emphasize a data-dependent approach rather than committing to a fixed timetable.

Kashkari noted that before the Iran war intensified, he believed inflation would moderate sufficiently to allow for one or two rate cuts in 2026. However, the conflict now represents a new shock that complicates the economic landscape. He stressed the need to evaluate both the duration and magnitude of the war’s impact on energy prices before making any firm decisions. This marks a shift from his earlier, more optimistic view expressed in early March, when he suggested a single cut could be plausible as inflation pressures eased.

Recent inflation and growth data from March, while not alarming, are insufficient to alter the Federal Open Market Committee’s policy statement, Kashkari argued. He maintained that officials require more information before adjusting their stance, whether it be toward combating inflation or supporting the labor market. This cautious perspective aligns with his earlier warnings that inflation remains “excessively high,” even as the economy has proven more resilient than anticipated.

The central question for policymakers, Kashkari emphasized, is how persistent higher oil prices will be and whether they will materially slow progress toward the Fed’s 2% inflation target. He highlighted energy costs as a key swing factor, noting that the war has obscured the policy outlook. At the same time, he urged the Fed to watch both sides of its dual mandate, cautioning against keeping rates too high for too long, which could unnecessarily harm the labor market.

Before the latest geopolitical shock, Kashkari had projected inflation running between 2.5% and 3%, with a downward trend. Now, he has adopted a more explicitly data-dependent stance, stating it is too soon to know if the rate cuts he once penciled in for 2026 can safely occur. With tariffs and war-driven oil prices adding to uncertainty, the path forward remains unclear.

In a significant move underscoring its commitment to frontier technologies, 137 Ventures has secured over $700 million across two new funds. This injection brings the firm’s total assets under management to more than $15 billion as of March 2026, establishing it as a major player in late-stage tech investing. The growth-stage firm, founded in 2010 by Justin Fishner-Wolfson and S. Alexander Jacobson, focuses on providing liquidity to early stakeholders and primary capital to what it calls ‘generational technology companies.’

The newly raised capital is earmarked for high-impact bets in artificial intelligence agents, robotics, advanced industrial systems, and novel aerospace propulsion. Recent additions to its portfolio include Cognition, Impulse Space, Hadrian, and Physical Intelligence—companies specializing in AI copilots, in-space logistics, automated manufacturing, and embodied AI. Over the last year, 137 Ventures has deployed more than $1.7 billion, concentrating its investments in a select few high-conviction opportunities rather than spreading resources thinly across numerous early-stage deals.

A standout in its portfolio is SpaceX, where 137 Ventures has invested across roughly 24 rounds since 2010. Founder Fishner-Wolfson revealed to Bloomberg that the firm now holds over $10 billion worth of SpaceX shares, representing more than 1% of the company. This stake could become one of venture capital’s most lucrative positions if SpaceX proceeds with an initial public offering at a valuation exceeding $1 trillion, as speculated by bankers and secondary-market indicators.

Beyond space, 137 Ventures has backed companies like Anduril, Gusto, and Ramp, reflecting a thesis that AI-powered defense, fintech, and enterprise infrastructure will drive outsized returns as automation reshapes industries. For founders developing AI agents, robotics platforms, or space-adjacent ventures, the new funds signal that 137 Ventures will be an active late-stage partner, particularly for those requiring patient capital for capital-intensive, long-duration projects.

The crypto venture capital landscape experienced a sharp contraction in April, with total funding falling to just $659 million across 63 deals. This represents a dramatic 74% decline from March’s $2.6 billion spread over 84 rounds, bringing monthly investment levels to their lowest point since 2024. The downturn signals a significant shift in investor sentiment after a period of relative optimism earlier in the year.

According to data aggregated by Cointelegraph, year-to-date crypto VC funding for 2026 now stands at approximately $5.64 billion. While still substantial, this figure trails the pace set in late 2025, particularly after October 2025 saw a monthly peak of $3.84 billion. Since then, funding volumes have steadily declined, mirroring a broader pullback in token prices and a roughly 37% drop in global crypto market capitalization over the same window. This environment has forced late-stage investors to reevaluate valuations and contend with markdowns.

The downward trend was already evident in February, when Phemex reported about $866 million raised across 62 transactions, a 46% decrease from January. Despite the pullback, certain sectors continued to attract capital, albeit at smaller ticket sizes. April’s numbers confirm that the market has entered a full-blown reset, characterized by fewer large growth-stage rounds and heightened scrutiny for new token launches. Industry data indicates that roughly 85% of tokens launched in 2025 are now trading below their initial issue price, further dampening enthusiasm.

Within this challenging environment, decentralized finance (DeFi) protocols led the pack with 12 deals, followed by blockchain infrastructure and services with eight, and AI-adjacent crypto projects also securing eight rounds. These areas remain focal points for investors seeking projects with tangible utility. On the investor side, GSR’s venture arm emerged as the most active participant in April, backing four separate transactions related to trading infrastructure and liquidity solutions. Major players like Tether, Animoca Brands, and Coinbase Ventures each contributed to three deals, though they tended to favor smaller, earlier-stage investments rather than the massive growth checks typical of previous cycles.

For founders, the message is clear: while capital remains accessible, investors are more selective and price-sensitive, prioritizing products that can endure lean conditions and demonstrate real-world usage over those driven solely by narrative. A slower pace of VC funding typically translates to fewer new token listings on exchanges, shifting the focus toward proving existing projects can deliver on their roadmaps without relying on another wave of easy money.

In a decisive move to uphold ethical standards, the U.S. Senate has voted to prohibit its members and staff from engaging with prediction markets. The resolution, passed unanimously on Thursday, amends the chamber’s standing rules and takes effect immediately. Senator Bernie Moreno, who spearheaded the initiative, emphasized that the ban is crucial to prevent the misuse of sensitive information for personal gain. He stated that no senator or staffer should be allowed to monetize their position through inside knowledge. This action follows growing concerns over incidents where individuals with access to classified data placed bets on platforms like Polymarket, including a recent case involving a special forces soldier charged with using confidential information to wager on the capture of a foreign leader. Senate Democratic leader Chuck Schumer described the rule change as a “no-brainer,” arguing that Congress must avoid turning into a casino where public representatives gamble on wars, economic crises, or elections. He called for extending similar restrictions to the executive branch. The House is expected to follow suit, with Representative Ashley Hinson announcing plans to introduce a comparable resolution. Prediction market operators, including Polymarket and Kalshi, have voiced support for the Senate action, noting that they already prohibit such conduct in their terms of service. This legislative move adds a new dimension to the ongoing regulatory debate over whether event contracts should be classified as financial products or gambling activities, as the CFTC continues to litigate against state actions targeting these markets.

XRP recently hovered around $1.38, marking a modest 1.11% increase over the past day, though the asset remained down nearly 3.9% for the week. With a trading volume of $1.55 billion and a market cap of $84.95 billion, investors are watching for signs of renewed momentum. The key price level to watch is $1.3930, which could determine short-term direction. Analysts emphasize that XRP must maintain critical support zones to prevent further declines.

Market commentator EGRAG Crypto highlights a rare setup called the “Blue Bridge,” a macro support line that has triggered similar reactions in 2018, 2021, and 2026. After each touch, XRP historically saw a 71% move, though this remains a theoretical projection rather than a guarantee. EGRAG Crypto noted that price behavior often precedes fundamental news, reinforcing the importance of technical structure.

Another analyst, Cryptoinsightuk, observes that XRP is still trading within a bull flag pattern, with both the weekly RSI and MACD turning bullish. This pattern mirrors the last major upside cycle. However, confirmation through price action is still needed. Trader CryptoWZRD added that XRP closed indecisively on the daily chart, stating that above $1.3930 signals positive territory, while a break below could lead to increased weakness.

Beyond the charts, Ripple’s ongoing business expansion provides a supportive backdrop. The company is reportedly partnering with Kbank in Korea to develop institutional-grade wallet infrastructure, targeting regulated digital asset services. Additionally, Ripple has opened a new regional headquarters in Dubai’s DIFC, signaling confidence in the Middle East and Africa as a blockchain hub. These institutional moves add context to the demand for XRP, though traders remain focused on the price action and key levels.

In a notable shift across Latin America, stablecoins have overtaken Bitcoin in transaction volume for the first time, according to Bitso’s latest report. The exchange’s data reveals that dollar-pegged tokens like Tether’s USDt and Circle’s USDC made up 40% of all crypto purchases on its platform in 2025, while Bitcoin trailed at 18%. This milestone underscores a growing preference for digital dollarization among users in economies plagued by high inflation and limited banking access.

Nearly 10 million retail customers drove this trend, turning to stablecoins for storing value, making payments, and facilitating cross-border remittances. The appeal lies in the U.S. dollar’s relative stability compared to local currencies, even amid global inflation concerns. Bitso’s report highlights that despite Bitcoin’s reduced purchase share, it remains a cornerstone in portfolios—appearing in 52% of holdings in 2025, down slightly from 53% the year prior. The exchange still views Bitcoin as the region’s primary long-term store of value, even as short-term activity leans toward stablecoins.

The broader stablecoin market has swelled to around $320 billion, reflecting adoption across emerging and developed markets. Regional developments, such as Mercado Libre’s cross-border remittance service using its Meli dollar stablecoin, further illustrate the shift. While Bitcoin’s price has been volatile—peaking above $126,000 in October before dropping to the low $60,000s—its fixed supply and decentralized nature continue to position it alongside gold in long-term value preservation frameworks, as noted by MarketVector research.

Bakkt has finalized its merger with Distributed Technologies Research, a company specializing in stablecoin payment infrastructure. The acquisition marks a strategic pivot for Bakkt as it integrates DTR’s agentic payment technology and compliance tools into its regulated institutional platform.

The combined entity aims to create a round-the-clock digital settlement layer powered by stablecoins. This move is designed to reduce dependency on traditional correspondent banking networks, offering financial institutions and fintechs faster digital payment solutions. Bakkt CEO Akshay Naheta emphasized that the architecture of money movement rarely undergoes such a transformation, positioning stablecoin functionality as a bridge between conventional finance and digital assets.

To complete the acquisition, Bakkt issued over 11.3 million Class A common shares to DTR’s beneficial owners. An additional 725,592 shares may be issued related to outstanding warrants. The deal was initially announced in January with 9.3 million shares, and Bakkt also underwent a corporate name change to Bakkt Inc. during that period.

Following the closure, Bakkt’s stock price experienced volatility. Shares dropped roughly 8% to $7.86 before the deal’s completion but later recovered to $8.62 by Thursday’s market close. The company has faced financial hurdles in recent years, including a warning from the NYSE in 2024 about potential delisting after its share price remained below $1 for 30 consecutive days.

Founded in 2018 and majority-owned by Intercontinental Exchange, Bakkt has previously partnered with major brands like Starbucks and Mastercard. With the DTR acquisition now complete, stablecoin payments are at the core of Bakkt’s growth strategy, signaling a renewed focus on modernizing payment infrastructure.

Tether-supported crypto payment platform Oobit has announced the launch of a virtual Visa card designed to enable artificial intelligence agents to autonomously spend USDT without human intervention. The newly introduced Agent Cards draw funds directly from Tether’s reserves, eliminating the need for conversion to fiat currency or traditional on-ramp processes.

According to Oobit, these cards allow automated payments for various online services, including subscription renewals, advertising campaigns, and cloud infrastructure usage, triggered by predefined workflows. Each card is uniquely assigned to a specific AI agent, providing traceable identity and a clear audit trail for every transaction.

Spending limits and merchant restrictions are enforced at the transaction level after businesses pass know-your-business (KYB) compliance checks, ensuring activity remains within approved boundaries. The system also integrates with major AI frameworks such as OpenAI, Claude, AutoGen, and LangChain, enabling enterprises to deploy agents that can execute operational tasks without manual oversight.

Oobit advisor Alex Obchakevich suggested that these agents could eventually expand beyond payments to include activities like trading cryptocurrencies and stocks. The company has issued Agent Cards to an initial group of businesses, with broader onboarding expected to expand gradually through June 30, pending usage evaluation and compliance requirements.

Industry leaders have increasingly highlighted the potential of AI agents in digital payments. Brian Armstrong predicted that AI agents conducting online transactions will soon outnumber humans, while Jeremy Allaire forecasted billions of AI agents transacting on-chain within three to five years. Oobit echoed this sentiment, stating that the next trillion internet users will be AI-driven systems.

This development builds on Oobit’s earlier efforts to bridge crypto wallets with traditional payment networks. In January, the company added support for Phantom Wallet, connecting Solana-based assets to Visa’s infrastructure and enabling users to spend digital assets at over 80 million merchants through its DePay system, which converts crypto to fiat at checkout.