Track market-moving stories before they get noisy

The Verus Ethereum Bridge has been targeted by a major security breach for the second time in just over two months, resulting in the theft of approximately $7.54 million in various crypto assets. The incident occurred on July 23 when attackers exploited a vulnerability, once again raising concerns about the security of cross-chain protocols in decentralized finance (DeFi).

Attacker Drains Bridge’s Ethereum ReservesThe breach allowed the attacker to abuse the bridge’s submitImports function, which triggered Ethereum-side payouts without equivalent assets being locked on the Verus blockchain. This vulnerability enabled the unauthorized extraction of funds from the bridge’s reserves.

Blockchain security firm Blockaid and independent researcher exvulsec both confirmed and investigated the exploit. According to on-chain data, roughly 1,137 ETH, as well as tBTC, USDC, USDT, EURC, MKR, and scrvUSD, were drained from the bridge reserves at around 03:45 UTC. The stolen assets were quickly swapped through decentralized exchanges, then consolidated into nearly 3,916 ETH before parts of the funds were routed through Tornado Cash.

Mini dictionary: Tornado Cash, a decentralized non-custodial privacy solution on Ethereum, is designed to break the on-chain link between source and destination addresses, making transaction tracing more difficult.

AssetAmount stolenEstimated valueETH1,137Included in $7.54M totaltBTCUnknownUSDCUnknownUSDTUnknownEURCUnknownMKRUnknownscrvUSDUnknown Investigators noted that by exploiting the same contract, function entry point, and vulnerability as a previous May breach, the attacker bypassed standard cross-chain verification and triggered unbacked payouts, draining several digital assets from Verus’ Ethereum bridge reserves.

Recurring Security Flaws and Recent HistoryThe latest breach revived scrutiny over Verus’ handling of a previous exploit in May, which resulted in an $11.58 million loss. Experts stated that this attack exploited the exact vulnerability from the earlier incident, indicating that core issues may have remained unaddressed. Blockaid observed that while this latest event involved a different attacker wallet, the method and targeted contract remained unchanged.

Following the May attack, the same attacker returned 4,052 ETH—about 75% of the stolen funds—after reaching an agreement with Verus. Despite that partial restitution, the repetition of the exploit has heightened doubts regarding the bridge’s security remediation process.

Experts pointed out that the repeated vulnerability likely resulted from an incomplete technical fix after the earlier breach, leaving Verus exposed to additional attacks. There is growing pressure for the protocol team to publish a thorough incident report and technical breakdown.

Ongoing Investigations and Broader RisksThe Verus incident is one of several recent DeFi bridge attacks highlighted by on-chain monitoring services. Lookonchain reported that combined losses from incidents involving Verus, AFX Trade, and B² Network have climbed to approximately $35.55 million.

Mini dictionary: Lookonchain is an on-chain analytics platform known for monitoring blockchain transactions and identifying patterns related to hacks, large movements, and abnormal activities.

Security analysts explained that bridge protocols are increasingly targeted due to logical flaws in cross-chain messaging mechanisms, which, if exploited, can allow fund withdrawals without equivalent collateralization.

Next Steps for Verus and UsersAmid the investigation, Verus halted all bridge operations but has not announced a compensation plan or released a detailed technical report. The absence of a clear official explanation has drawn criticism from the user community.

Observers expect the Verus team to prioritize closing the technical vulnerability, improve their validation process, and offer a roadmap to locate and potentially recover missing assets. Until these steps are made public, scrutiny around trust and transparency in the protocol will likely continue.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Circle is facing criminal charges in Wisconsin because, in relation to some investment fraud, "Circle Internet Financial LLC has declined to repatriate the corresponding fiat reserves" and "Circle has not complied with a Circuit Court Judge’s seizure warrant."

Law enforcement secured a seizure warrant which Circle will not enforce. Circle claims they cannot enforce it. The government is charging Circle for declining to enforce it. Whatever is going on: everyone agrees Circle is not currently enforcing it.

This column has a long history of pulling entertaining and contradictory bits out of company public statements and (usually much later) legal settlements where those companies got caught doing something they were not supposed to do. Much of the time the company in question made explicit statements that it would not do the conduct it eventually admitted doing. And much of the time those public statements were contemporaneous with the bad conduct. But we only found out they were lying years later.

Here we have the rare opportunity to work through seemingly-false statements made by a company during a public dispute with law enforcement in real time. So that is what we are going to do. Some of this was covered by the ICIJ but we think their narrative is too generous towards Circle.

Some BackgroundTether routinely seizes funds for law enforcement. Tether has the power to transfer USDT out of your address and burn them without your knowledge or consent. So to seize funds Tether just burns tokens from anywhere and then issues fresh replacement USDT to whatever address law enforcement wants. In theory Tether could also take the funds back from law enforcement — the same process can be used for any address — though that has not yet happened. Tether has had these powers for many years. Nothing is this paragraph is new or controversial.

Circle is a little bit different. Circle does not currently have a seize function in their tokens. Both Tether and Circle can freeze funds – immobilizing them in an address – but Circle's current smart contracts do not support seizure. Circle routinely freezes tokens but it does not seize them. This is presumably what Circle was referring to when it told the Walworth County Circuit Court:

Beyond the ability to blocklist wallets, however, Circle has no control of USDC held in third-party wallets and has no ability to invalidate and reissue such USDC or to transfer them.The key words here are "has no control" and "has no ability." Circle uses the conjunction "and" meaning Circle believes both of those claims to be independently true. If Circle has any way to wrangle invalidation then Circle made a false statement to the court. Given invalidation we know reissuance is possible because once you invalidate the "bad" tokens the reissuance is just issuance. Which happens all the time. So the threshold question here is whether Circle can "invalidate" USDC in an address specifed by law enforcement.

Circle's PowersCircle cannot currently invalidate USDC and seize funds. But Circle can upgrade USDC to have whatever functionality it desires. So it cannot follow this roadmap to comply with a seizure order:

Seize the fundsBut absolutely it can comply with this roadmap:

Upgrade USDC to allow seizureSeize the fundsIn a strange turn, Circle told the government the required process to seize the funds was as follows. And bear in mind we are quoting Circle's own court filing here so this is presumably a generous phrasing from Circle's perspective:

Circle also communicated to Detective Kuchta that (1) the address was not held at Circle; (2) Circle did not have the private keys for the address; (3) Circle could not, therefore, transfer USDC from the wallet; and (4) to recover the USDC for the victim law enforcement would need to locate the private keys for the address. By telling the police to go find the private keys Circle is being, well, let's call it intransigent. Actually, no, let us be a bit more direct (with apologies to Andy Samberg and Justin Timberlake). Circle looks to prefer these steps:

Get charged for no function to seizeMoan how it sucks to seizePut in a function to seizeThat’s the way they do it. Circle is being a...go watch the video in that last link.

It is hardly a secret Circle can upgrade the USDC contracts so it looks pretty likely this capability will eventually come up in court and the judge will sort Circle out. Circle's terms also provide the company with incredibly broad discretion to deny anyone access at any time and in any manner at all for pretty much any reason. This text is in the Acceptable Use Policy describing a list of things you are not allowed to do with USDC and which might lead Circle to cut you off:

For clarity, the following lists are not exhaustive and we may, at our sole discretion, modify them without notice.So Circle can decide anything it likes is out of bounds. And that document covers:

services provided by Circle Internet Financial, LLC, Circle Payments, LLC, Circle UK TradingLimited and/or Circle International Bermuda Limited (together, “Circle”), inclusive of, but not limited to, Circle Mint account,Application Programming Interface products, card processing, and the Circle Yield offering (together and separately, the “Services”), The "but not limited to" would seem to provide sufficient cover to enforce a court order by including whatever corners of Circle's operation are needed to effect the required upgrades. Remember: in this case a court is telling Circle to do something and Circle is not doing it. Maybe you think reading that clause in such a broad manner is squirrely. Sure, maybe. But that is a problem when a strained reading is used to evade a court or the clear intent of a contract or some other agreement. In the present case not reading these powers broadly led to criminal charges and is, in a real and on-going sense, blocking enforcement of a court order. Using this ambiguity to comply with the court is not going to anger the court. Certainly not any more than the current behaviour will.

Circle's Terms vs. ActionsIn Circle's documentation the company anticipates that court orders may come in to request asset freezes. There is an Access Denial Policy which sets out the freeze framework. And there is even a section entitled "Blocked Addresses & Forfeited Funds" in the USDC Terms. That later section includes this text:

Circle may also be required to freeze USDC and/or surrender associated USD held in Segregated Accounts in the event it receives a legal order from a valid government authority requiring it to do so.This anticipates the idea that a court order may mandate sending USD somewhere the court directs. The word "forfeited" appears in a section heading. And if we look at the government's description in Wisconsin we find something very much on point:

The Court’s Warrant ordered Circle to “facilitate the seizure” of Victim #1’s USDC and invalidate that USDC so that it had no value. The Warrant then ordered Circle to issue approximately $381,000 in new USDC to compensate Victim #1 and transfer that new USDC to a digital wallet owned by the Walworth County Sheriff’s Department. This procedure is known as “burn and reissue”."Facilitate the seizure" is a broad directive. The court is not telling Circle precisely how to satisfy the court's desires. The court is simply saying "find a way to do this." And Circle's on-the-record response is weird. Above we quoted Circle's broad claim of "no ability." The government's narrative gives a bit more colour there too:

In subsequent discussions, Circle’s representatives have explained that the company holds approximately $381,000 in US Currency in reserve to cover the value of Victim #1’s USDC, even though that USDC cannot be redeemed by anyone for US Currency because Circle froze it. Circle protested that if it issued $381,000 worth of new USDC, it would also have to hold an additional $381,000 in US Currency to cover the new USDC. Circle objected that it would be unfair for the company to have to set aside that much US Currency in reserve. Circle also stated that by the terms of its own contracts, it will not “burn and reissue” USDC.This is some twisted logic. Circle seems to believe it is required to maintain backing for all USDC, frozen or not, and that because it currently cannot burn and reissue USDC this would require holding double reserves for the recovered amount and that – the double reserving Circle just imposed on itself – is unfair.

We will immediately concede that double reserving here is unreasonable and dumb. But the double reserving is only "required" if we accept Circle's claim it cannot do the burn and reissue. This is a strained attempt for Circle to look like the victim. Possibly so that Circle can continue to collect interest on the US$381,000 in reserves it holds against the frozen tokens

Said another way: Circle's protest assumes Circle will not use its power to upgrade the USDC to allow seizures. We know this is Circle's thinking because, again quoting the Wisconsin government:

Circle also stated that by the terms of its own contracts, it will not “burn and reissue” USDC.This is weird. The word "reissue" does not appear on circle.com, as of this writing, per a number of searches. And the USDC Risk Factors also include a section entitled "Blocked Addresses & Forfeited Funds" so this is puzzling. If we read the reference to "its own contracts" in that last quote from Circle as pertaining to the USDC smart contracts it is again true in a literal-and-useless sense. By the terms of the currently deployed smart contracts there is no reissue power. But by the terms of those same contracts Circle can simply change the contracts.

Circle looks to be playing games so it can collect interest on frozen USDC forever. Holding frozen scam-related funds forever and keeping the interest is an interesting business model.

ContractsIf you have ever entered into any sort of commercial agreement you have probably seen clauses that allow someone to modify the terms under extreme circumstances and maybe also in a "commercially reasonable manner" if the need arises. Most contracts contemplate the idea that things can change and some amount of flexibility is required. For example, a company may change its office address. Or it may change where it banks. Or any number of other things. If you enter into a contract which includes bank details and the other party changes where it banks that does not mean you automatically can stop paying. If the company tells you where to send the money instead you cannot just decide to terminate the contract (unless it is a very strange contract indeed).

Similarly, you might enter into a contract based on some published reference price – think oil or gold or a commercial property index or some interest rate benchmark – and the name of that thing might change. Or where or how it is published might change. Someone is supposed to keep things up to date in a commercially reasonable manner. There is standard verbiage for this in many industries and if you end up in court the judge will make you do the sensible thing. Yes there are corner cases. But the Circle mess is really quite simple. Circle's term look to allow for enforcement here. And there is a simple sequence of steps Circle can follow to do the enforcement. None of this makes much sense.

Circle looks to be trying to interpret things in an incredibly narrow and self-serving way to manufacture an injury Circle would suffer if it complied. And then to moan that imagined injury is unfair. If we go back to Circle's own words to the court this is clearly exactly what they are doing:

The Complaint’s sole allegation regarding Circle’s intentional disobedience is that “Circle...refused to invalidate the stolen USDC or issue new USDC,” Compl. ¶ 9. But the Complaint clearly misrepresents the content of the relevant communication. Circle did not “refuse” to invalidate the stolen USDC; it stated that it “does not hold the private keys to the address.” Compare Compl. ¶ 9 with Ex. 6. That is an accurate statement that Circle lacked the tools required to “invalidate” the USDC held in the Blocklisted Wallet, not an intentional refusal to comply with the terms of the Second Warrant.Circle was directed to "facilitate the seizure" of the funds. And then Circle asserts it did not refuse to invalidate the USDC in question – its just that Circle has no button labelled "seize" to press. But Circle did refuse to upgrade the USDC contracts to add a seize button.

Circle also presented the total non-sequitur that it "does not hold the private keys to the address" of the fraud-linked funds. This is also arguable. It is true in the sense that Circle does not hold the fraudster's private keys. But the term "private keys" is not being used in a technically precise sense here because there are two sets of private keys that can move the funds. The term "private keys" as used here connotes control over funds. And so long as Circle has the private keys to upgrade USDC it has one set of private keys that can facilitate a seizure out of the addresses in question. Remember: USDC and USDT are not true bearer assets. The issuers retain a lot of control over "your" funds.

Maybe you think we are giving the authorities too much credit and we should interpret the claim in narrow technical terms? Under that reading, you may be thinking, it is not Circle's problem the government asked for the wrong thing. We have sympathy for this sentiment. But there is a bigger problem. If we interpret everything in these documents in narrow technical terms Circle is wrong that it has "no ability to invalidate and reissue such USDC or to transfer them." It has the ability to do this by upgrading the contract to give itself the ability. This falsity then gives rise to a litany of other false claims including:

Circle "would also have to hold an additional $381,000 in US Currency to cover the new USDC": false because once Circle has burn power there is no need to double reserve. And that is if we accept the need in the first place as Circle can simply declare the address outlaw and ignore it.Circle also stated that by the terms of its own contracts, it will not “burn and reissue” USDC: this is at most a policy Circle can revise in its sole discretion. And having a policy to defy court orders is pretty much exactly what Circle is charged with here.Circle has no control of USDC held in third-party wallets: false because in a technical sense Circle has more than "no" control via contract upgradability. It has, and we apologize for the technobabble here, "some" control.Circle...has no ability to invalidate: false via upgradability.Circle...has no ability to...reissue such USDC or to transfer them: false via upgradability.If we read the claims in the dispute broadly: Circle is not being candid. If we read the claims narrowly: Circle is not being honest. Unless Circle has somehow lost the ability to upgrade USDC – which would be a far larger problem if kept hidden for so long – we just cannot see a way they are telling the truth here. Maybe there is one but there is certainly no hint of such an explanation in the court filings to date.

Circle's Principled ResistanceWhat makes this even stranger: Circle's terms also contemplate circumstances in which the company will resist court orders. But that too does not fit what is happening here. Again from the Access Denial document:

Circle reserves all rights to object to an access denial order that presents a threat to Circle Stablecoin or that Circle determines is objectionable.USDC holders do not have any rights or derive any value from this. But it presumably empowers the company to do what it is doing in Wisconsin now without worrying about shareholders suing anyone for resisting court orders. The US legal system is adversarial and Circle is 100% entitled to resist government requests and to challenge orders. Within the US system. Telling law enforcement to go pound sand after the judge rules is not something Circle is entitled to.

It is certainly possibly Circle views anything that reduce's Circle's interest income as objectionable. There is a logical, if wacky, corporate theory here: "We prefer to hold frozen assets indefinitely to maximize shareholder value. We view this as part of our fiduciary responsibility to shareholders. Victims are not shareholders sorry." Probably no company wants to come out and say that. But it is true that public companies have a responsibility to shareholders and not victims. They also have a responsibility to judges and to shareholders to not egregiously defy judges. So it is all kind of mixed together there.

Now notice the seizure warrant requests Circle is fighting here date back to August 2025. Multiple seizure warrants have been issued. And Circle has been communicating false claims to Wisconsin officials for many months now. Criminal charges were filed in April 2026. Circle moved beyond objecting to an access denial order to simply refusing to follow one after multiple rounds of back and forth. This happened over many months.

We accept it is possible to read these most recent actions as part of resisting the order. And maybe law enforcement jumped the gun with criminal charges. But it is kind of hard to credit Circle here and think ongoing negotiations without criminal charges would go anywhere. Circle has stated clearly that it cannot comply for technical reasons. Circle claims it is impossible to do what the court wants. But those claims are plainly false (or Circle is covering up something worse). For negotiations to go anywhere Circle would need to concede it was wrong or the police would need to stop asking for seizure. That looks like a stalled negotiation to us.

If Wisconsin officials were demanding Circle seize USDT then we would certainly feel for Circle. Circle is not omnipotent. There are plenty of web3 things Circle cannot do. And, obviously, it is possible for law enforcement to order someone to do something that is technically impossible for them to do. This is true of anyone and any law enforcement unit anywhere in the world. Try this one: a court could issue an order for a witness to not die before a trial. That would not have the effect of conveying immortality on the witness. Law enforcement can be wrong. But here, today, Circle is wrong.

The court wants Circle to do something that Circle can do. So we are going to make two predictions. First, Circle will eventually comply. And second, Circle will blame confusion between the legal and engineering teams for the false statements. The court should not accept that explanation. We kind of hope Circle tries the shareholder value line too. If someone says "victims are not shareholders and our fiduciary responsibility is to shareholders" that will just be too amazing for words. As odd as that outcome seems remember a listed US company is currently engaged in a dispute with law enforcement in Wisconsin in which the listed US company is just straight-up lying. This is all incredibly odd.

We have long predicted the lawyers would need to throw the engineers under the bus at some point. Honk honk.

Licensed to Shill: Retail Barely Touches Stablecoins – Treasury & Remittance Are the Real Adoption (Jeannie Lim, Xweave)

At Xweave, Jeannie Lim says her team moved $1 million for an e-commerce client in under three minutes, cutting settlement costs 30% against a Tier 2 bank’s SWIFT rate.

BlockheadBlockhead

Samsung just made stablecoins a default feature of its mobile wallet. At Galaxy Unpacked 2026 on July 22, the company announced that Samsung Wallet will integrate native stablecoin support, with USDC among the expected options. The move effectively puts digital dollars alongside tap-to-pay, boarding passes, and loyalty cards in the pockets of hundreds of millions of Galaxy device owners.

What Samsung actually announced The stablecoin integration was revealed as part of a broader push to make Samsung Wallet a unified hub for payments, rewards, and digital assets. Samsung framed it as a “secured payments and rewards experience.”

The company hasn’t confirmed a specific launch date for the stablecoin feature. It also hasn’t officially locked in which stablecoins will be supported beyond the strong signals pointing toward USDC, Circle’s regulated dollar-pegged token.

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The announcement didn’t happen in isolation. Samsung simultaneously unveiled the Galaxy Card, a credit card issued by Barclays and running on the Visa network, targeting US users with tiered cash-back rewards.

In 2025, the company partnered with Coinbase to give millions of US Galaxy users access to cryptocurrency services directly through their devices. That collaboration laid the groundwork for what’s coming next, essentially graduating Samsung Wallet from a non-custodial blockchain wallet with basic crypto access into something closer to a full-featured digital asset platform.

What this means for investors For Circle, the company behind USDC, this partnership could strengthen its position ahead of any potential IPO or public market activity.

There are risks worth noting. Regulatory frameworks for stablecoins remain a work in progress in many jurisdictions. Samsung will need to navigate varying compliance requirements across its global markets, which could limit the feature’s availability to certain regions initially. The US market, where the Galaxy Card is launching alongside the Barclays partnership, is the likely first target.

The 2025 Coinbase partnership gave Samsung a foundation in crypto services, but stablecoin integration represents a fundamentally different proposition. Offering users the ability to buy Bitcoin through a partner app is one thing. Embedding dollar-equivalent digital currency into the core wallet experience is another.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.

Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.

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Circle Pushes a MiCA Fix That Could Bring Tether Back to Europe

Coinbase has rolled out direct USDC-BRL trading and conversion for users in Brazil, giving the country’s crypto-curious population a cleaner on-ramp between the Brazilian real and the world’s second-largest stablecoin.

The feature is live on Coinbase’s dedicated Brazilian platform at coinbase.com/en-br, where users can access real-time conversion tools, trade USDC against BRL, and, in some cases, earn yield on their holdings. Promotional rewards of up to 7% annually on USDC are part of the offering.

Why Brazil, why now USDC, issued by Circle, is pegged one-to-one to the US dollar. As of late July 2026, one USDC converts to approximately R$5.08-5.10. For Brazilian users, holding USDC is functionally like holding digital dollars, without needing a US bank account or dealing with traditional forex friction.

Coinbase launched its dedicated Brazilian platform on January 23, 2026, laying the groundwork for this kind of localized feature set. Earlier reports from 2025 had flagged limitations in BRL transaction support on the exchange, so the USDC-BRL integration represents a clear upgrade from where things stood just 18 months ago.

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Direct fiat-to-stablecoin conversion eliminates a step that previously required users to either buy Bitcoin or Ethereum first and then swap into USDC, or use a third-party service to bridge the gap.

The stablecoin playbook in emerging markets For Coinbase specifically, Brazil represents one of only a handful of regions where the exchange has explicitly built out USDC trading and conversion infrastructure.

Brazil’s regulatory landscape passed its landmark crypto regulatory framework in 2023, and the central bank has been actively developing its own digital currency, the Drex.

The 7% annual yield promotion on USDC is worth pausing on. A dollar-denominated yield product adds a layer of currency diversification on top of the return itself, providing both yield and a hedge against real depreciation simultaneously.

What this means for investors and the competitive landscape Coinbase isn’t operating in a vacuum here. Binance, Mercado Bitcoin, and other exchanges have been aggressively courting Brazilian users for years. Binance in particular has built deep roots in the country, with BRL payment integrations and localized support that predates Coinbase’s dedicated Brazilian platform launched January 23, 2026.

Brazil’s crypto framework is still relatively young, and the central bank’s Drex project could eventually introduce a government-backed digital alternative that competes directly with private stablecoins like USDC.

The 7% promotional rate on USDC is tied to what Circle can earn on the reserves backing the stablecoin. If global interest rates decline, so do the yields that make these products compelling.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

https://www.circle.com/multi-chain-usdc

Circle has minted an additional 250 million USDC on the Solana blockchain, increasing the total issuance on the network to approximately $72.01 billion. This marks the fourth such mint in two days, indicating significant activity within the Solana ecosystem. The cumulative issuance figure reflects the total amount minted, not the circulating supply on the network. The recent minting activity suggests an uptick in liquidity and usage of Solana, which might influence market dynamics and investor sentiment.

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The market’s response to this development appears mixed. In the prediction market for Solana reaching $90 by August 1, 2026, the odds remain low, with a 2% YES probability. This suggests that while the increased USDC issuance could indicate higher network activity, it has not yet translated into strong confidence in a substantial price rise for Solana in the short term. Market participants continue to weigh the potential impact of increased liquidity against broader market conditions and regulatory environment.

Key Takeaways Recent USDC minting activity appears consistent with increased liquidity on Solana, potentially impacting network activity. Market pricing suggests limited confidence in a near-term price surge for Solana, with low odds of reaching $90 by August 1. The aggregate issuance of USDC on Solana does not equate to circulating supply, indicating complex underlying market dynamics. What to Watch Observers should monitor whether continued USDC issuance on Solana leads to significant shifts in network activity or market sentiment. Key indicators include any changes in the prediction market’s pricing for Solana’s price targets and broader adoption of USDC on Solana for transactions. Additionally, developments in regulatory policies and technological upgrades on Solana may further influence market perceptions and pricing.

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Term Structure

Contract Odds Δ since publish Volume 24h August 1 2026 2.5% — — View market → August 1 2026 0.1% — — View market → August 1 2026 0.1% — — View market → August 1 2026 0.9% — — View market → August 1 2026 0.5% — — View market → August 1 2026 0.4% — — View market → August 1 2026 1.4% — — View market → August 1 2026 0.3% — — View market → August 1 2026 1.9% — — View market → August 1 2026 0.1% — — View market → August 1 2026 0.6% — — View market → August 1 2026 0.1% — — View market → August 1 2026 28% — — View market → August 1 2026 0.1% — — View market → August 1 2026 0.1% — — View market →

Duan Yongping has sold SpaceX put options with a strike price of $92.

Renowned investor Duan Yongping stated yesterday in response to a community user's question that he has started selling put options on SpaceX. This is his typical "potential acquisition" strategy. According to the live trading records of the SpaceX put options Duan shared, his quoted price was around 23.20, with actual execution at 23.26 (1,000 contracts), earning him a premium of approximately $2.32 million. Calculated over a 5-month term, the yield is roughly 25.35%, with an annualized return of about 60%. He noted, "I want to support Elon Musk's dream."

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The United States and the United Kingdom plan to discuss forming an international alliance to protect maritime shipping in the Strait of Hormuz.

According to AXIOS: European diplomats say the U.S. and the U.K. are discussing holding a high-level meeting in London next week, with the meeting focusing on a potential plan to establish an international coalition to protect maritime shipping in the Strait of Hormuz.

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A prominent trader says Bitcoin’s cycle is accelerating, and firmly believes this cycle will still hit a new high before the halving.

Renowned trader Killa (@KillaXBT) stated in a post that Bitcoin’s cycle is accelerating. The previous cycle took just 476 days to rise from its bottom to a new all-time high (ATH), far faster than the two prior cycles. He forecasts this cycle will also hit a new high ahead of the next halving. Killa, a BTC-focused quantitative trader, accurately predicted the peak of the current bull market in May 2025 and boasts over 200,000 followers on X. In mid-April, he shorted Bitcoin at $74,688 before switching to long positions during the broad market sell-off on June 5.

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Qualcomm notifies its customers it can no longer absorb price hikes, and will raise prices by double-digit percentages.

Bloomberg cited a letter reporting that Qualcomm has informed its clients it can no longer absorb price hikes and will implement double-digit percentage price increases. Following the news, BIT (bit.com) market data shows Qualcomm’s decline narrowed, while Nvidia climbed 1.2% to hit a new daily high.

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OpenAI CEO: Hopes the U.S. wins in the open-source AI sector, and is "pleased to see" Jensen Huang's remarks.

OpenAI CEO Sam Altman said he hopes the U.S. will lead in both open-source AI and proprietary AI models, adding that he "welcomes" the statement Nvidia’s CEO made on social media regarding the open letter jointly issued by over 20 U.S. tech companies.

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Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.

Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.

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Semiconductor stocks were mixed in U.S. pre-market trading, with Intel rising nearly 5% while most storage and optical communication stocks declined.

According to BIT (bit.com) market data, ahead of Friday’s US pre-market trading, semiconductor stocks were mixed: Intel (INTC) rose 4.76%, Arm (ARM) gained 0.96%, and AMD (AMD) increased 0.41%; SK Hynix (SKHY) fell 2.93%, Micron Technology (MU) dropped 2.16%, Marvell Technology (MRVL) decreased 1.41%, and NVIDIA (NVDA) declined 0.72%. The storage sector saw broad declines: SK Hynix (SKHY) fell 2.93%, SanDisk (SNDK) dropped 2.19%, Micron Technology (MU) decreased 2.16%, Western Digital (WDC) declined 1.68%, and Seagate Technology (STX) fell 1.24%. Most optical communication concept stocks retreated: Nokia (NOK) dropped 2.15%, Astera Labs (ALAB) fell 1.99%, Credo (CRDO) decreased 1.86%, Ciena (CIEN) declined 1.14%, and Applied Optoelectronics (AAOI) fell 0.62%.

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Suspected a16z address has staked 2.785 million HYPE tokens, worth approximately $164 million.

According to Mlm monitoring, a HYPE whale staked 2.785 million HYPE tokens via 20 wallets over the past 11 hours, worth roughly $164 million. The whale had previously accumulated 2.94 million HYPE tokens between September and October last year, currently valued at approximately $172 million, and ranks among HYPE’s largest holders. The whale may be linked to a16z, though this association has not been confirmed.

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Intel's pre-market trading rose nearly 5% on the back of strong Q2 performance and Q3 guidance that exceeded expectations.

According to market data from BIT (bit.com), Intel (INTC) is up nearly 5% in pre-market trading, as its Q2 results were strong and Q3 guidance exceeded expectations.

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Coinbase is allowing businesses to accept USDC payments from autonomous AI agents as part of a wider expansion of its agent-focused financial tools. 

Summary

Coinbase Business will accept USDC payments initiated by AI agents through its native x402 support. Coinbase for Agents adds live market views and conditional actions controlled by user-defined trading guardrails. Developers can add agent payment acceptance to online services using Coinbase’s streamlined CDP x402 SDK. The exchange announced the rollout on July 23, 2026, alongside new trading commands for users and a developer kit for adding x402 payments to online services.

Coinbase said software-generated traffic exceeded human traffic on its Base documentation pages for the first time in June. The company argued that most online payment systems still assume “a human clicking the button,” leaving businesses and developers without a simple way to serve autonomous software.

Coinbase Business adds agent payments Beginning this week, Coinbase Business users can accept USDC payments sent by AI agents. Coinbase Payments powers the feature, while native x402 support handles internet-based, pay-per-use transactions. Businesses can receive, track, reconcile and cash out agent payments from the same account used for other payment activity.

Coinbase Business also offers rewards on eligible idle USDC balances. Its current business page lists a 3.35% annual reward rate, although Coinbase says rates can vary by region and may change. The company also states that USDC payments do not carry chargeback risk because Coinbase does not act as a party to transactions between businesses and their customers.

New commands expand Coinbase for Agents Coinbase also added real-time market views and conditional actions to Coinbase for Agents. The new commands let an agent stream open orders, view an asset’s order book and watch live price and volume data. Users can set a condition that triggers a planned action, including a buy, sale or order cancellation.

The company presented examples such as selling assets when Bitcoin falls below a set level or cancelling an order after a fixed period. Users define those instructions and related guardrails.Coinbase for Agents already allowed authorised AI tools to trade, manage portfolios and complete financial workflows through linked Coinbase accounts.

CDP x402 SDK targets developers Coinbase Developer Platform introduced a new CDP x402 SDK that lets developers add agent payments to an API, Model Context Protocol server or web service with a small code setup. Coinbase said the kit arrives preconfigured with its preferred infrastructure and extensions, reducing the manual work previously required to choose payment middleware and service providers.

The x402 standard uses the HTTP 402 “Payment Required” response to send payment instructions directly between an online service and a client. An AI agent can receive the request, sign a stablecoin payment and retry access with proof of payment. Coinbase launched the open standard in May 2025 for APIs, applications and autonomous agents.
The latest products extend a series of agent-payment releases from Coinbase. As previously reported, Amazon added Coinbase x402 to Bedrock AgentCore Payments in May, allowing agents to pay for services in USDC. Coinbase-backed x402 also launched Agentic.market in April to help agents discover and purchase compatible online services.

The company has not disclosed payment volumes expected from the feature.Coinbase said the three updates cover businesses receiving payments, people directing financial agents and developers building agent services. The rollout remains tied to user-set controls, supported regions and product availability. Coinbase Business currently operates in the U.S. and Singapore, while individual features and USDC reward rates may differ by market.

Key Highlights Businesses using Coinbase can now receive USDC payments directly from AI agents through x402 protocol integration The x402 framework debuted in May 2025, designed to facilitate stablecoin transactions via HTTP Automated trading features allow users to set market conditions and execute transactions through AI monitoring Developers gain access to an x402 SDK enabling payment integration with minimal code implementation AI agent activity on Coinbase’s Base documentation exceeded human visits for the first time recently In a significant expansion of its business services, Coinbase has introduced functionality enabling commercial entities to receive cryptocurrency payments from autonomous AI agents. The platform now supports USDC stablecoin transactions through its Business tier, marking a shift toward automated digital commerce.

The infrastructure relies on x402, a payment protocol developed by Coinbase and unveiled in May 2025. This framework enables stablecoin transfers to occur via HTTP requests, effectively allowing AI systems to execute financial transactions similar to how consumers use digital payment methods for online purchases.

According to Sid Coelho-Prabhu, who leads Coinbase Business operations, the development represents creating a payment gateway tailored for an economy driven by autonomous agents. These AI systems can establish wallets independently, access necessary technical documentation, and begin conducting transactions without requiring merchants to implement specialized infrastructure.

Transaction processing occurs through Coinbase Payments infrastructure with settlements completed in USDC. Merchants can accept these automated payments without developing custom integration solutions.

Automated Trading Features Debut Alongside the business payment tools, Coinbase has activated AI-powered trading capabilities for individual users. These features enable traders to establish parameters using conversational language—for instance, “purchase ETH when price drops 5%”—with an AI agent continuously monitoring market conditions and executing trades when criteria are met.

The interface provides real-time visibility into all agent-managed orders, displaying current status, pricing information, and transaction volumes. Behind the scenes, the system leverages WebSocket market feeds identical to those utilized by professional trading operations.

This democratizes sophisticated market surveillance capabilities that traditionally required either technical expertise or specialized software to implement effectively.

SDK Release Simplifies Development On the developer front, Coinbase has made available an x402 software development kit via its Developer Platform. The toolkit enables programmers to integrate x402 payment capabilities into APIs, MCP servers, or web applications with minimal coding effort—reportedly just three lines of implementation code.

This streamlined approach reduces technical barriers for developers building applications designed to interact with AI agents conducting financial operations.

The company highlighted increasing adoption signals, revealing that automated agent traffic surpassed human visitors on Base network documentation resources last month. Coinbase emphasized that existing internet payment systems were architected with the assumption of human interaction—a premise that no longer reflects current usage patterns.

This launch aligns with broader industry momentum, as multiple payment processors and cryptocurrency platforms work to establish stablecoins as the foundational payment layer for AI-driven online commerce.

Specific pricing structures for these new business capabilities have not been disclosed, though they operate within Coinbase’s existing Payments framework.

Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.

Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.

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TLDR Table of Contents

TLDRCircle Forges Strategic Alliances with Kakao and Toss BankCircle Leverages Previous Korean Collaborations for Stablecoin GrowthSouth Korea Presents Prime Opportunities for Circle’s Payment Expansion Circle partners with Kakao Group to develop blockchain-based payment systems in South Korea. Toss Bank collaboration focuses on exploring stablecoin integration for payment services. New partnerships build upon existing relationships with Upbit, Bithumb, and Hana Bank. Kakao alliance extends Circle’s influence throughout Korea’s expansive digital ecosystem. Circle pursues compliant USDC payment expansion within South Korea’s regulatory framework. The stablecoin issuer Circle has strengthened its South Korean operations by establishing strategic partnerships with Kakao Group and Toss Bank. These collaborations emphasize developing blockchain-enabled payment systems and exploring stablecoin integration opportunities. Circle continues reinforcing its regional position by securing partnerships with prominent technology and financial sector players.

Circle Forges Strategic Alliances with Kakao and Toss Bank Circle formalized a memorandum of understanding (MOU) with Kakao Group to investigate blockchain-powered payment solutions throughout South Korea. This collaboration centers on digital transaction systems and wider blockchain technology implementations. Neither organization has disclosed specific product launches or deployment schedules.

Kakao commands one of South Korea’s most extensive digital platforms, encompassing messaging applications, payment processing, banking operations, and financial technology services. This alliance provides Circle with potential access to an ecosystem reaching millions of active users. The partners intend to evaluate blockchain innovations that could enhance future payment offerings.

Circle simultaneously initiated cooperation with Toss Bank to explore stablecoin-based payment solutions. The digital-only banking institution has recently intensified its blockchain engagement. Toss Bank previously established a partnership with the Solana Foundation to advance blockchain-powered financial infrastructure for international users.

Circle maintains its focus on cultivating partnerships with licensed financial entities throughout South Korea. The company prioritizes expanding real-world payment applications rather than developing a Korean won-denominated stablecoin. These recent agreements reinforce its broader regional expansion blueprint.

Circle Leverages Previous Korean Collaborations for Stablecoin Growth Circle established its South Korean presence through multiple strategic partnerships preceding these latest announcements. During April, the firm secured collaborative agreements with cryptocurrency exchanges Upbit and Bithumb. These platforms collectively dominate the nation’s cryptocurrency trading volume.

Subsequently, Circle finalized another memorandum of understanding with Hana Bank in May 2025. This relationship later broadened to encompass Hana Card. The collaborating entities focused on international remittance services and corporate treasury solutions utilizing USDC.

Circle has consistently stated it has no plans to introduce a Korean won-backed stablecoin. The company instead advocates for USDC as a dollar-denominated payment instrument. This approach contrasts with domestic stablecoin development initiatives.

KakaoBank progressed its won-backed stablecoin development efforts throughout late 2025. The two organizations may pursue independent stablecoin initiatives within the Korean market. Their partnership emphasizes payment infrastructure development rather than collaborative digital currency issuance.

South Korea Presents Prime Opportunities for Circle’s Payment Expansion South Korea represents a critical marketplace for blockchain payment innovation and regulated digital asset infrastructure. The nation features sophisticated digital banking systems alongside widespread mobile payment utilization. These factors position Circle to capitalize on stablecoin-powered financial service opportunities.

Kakao launched its blockchain initiatives with Klaytn in 2019. The platform subsequently integrated into the Kaia blockchain throughout 2024. This evolution produced a high-throughput Layer-1 blockchain capable of supporting diverse blockchain applications.

Circle garnered significant interest from South Korean retail investors following its public market debut in 2025. The organization simultaneously advanced partnership development across financial institutions and technology enterprises. Its territorial strategy emphasizes compliant payment infrastructure and streamlined cross-border transaction capabilities.

South Korea enforces rigorous digital asset regulations while simultaneously promoting blockchain technological advancement. The government prohibited initial coin offerings in 2017 and established mandatory exchange registration protocols. Circle nevertheless continues forging partnerships aligned with the nation’s regulated financial ecosystem.

Oliver Dale

Editor-in-Chief of Blockonomi and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact [email protected]

Changpeng Zhao Ignored This One Market, Now It Is Worth Over $311 Billion

Coinbase is expanding its push into AI-powered finance, enabling businesses to accept USDC payments from autonomous AI agents as part of a broader expansion of its payment, trading and developer tools.

According to a Thursday X post, Coinbase Business users will be able to accept USDC (USDC) payments from AI agents through the x402 payment standard, which Coinbase first introduced in May 2025 to enable stablecoin payments over HTTP for AI agents, applications and APIs.

The post also announced AI trading tools that let users monitor orders, access live market data, and execute actions based on predefined conditions, as well as a software development kit for developers building agent-powered applications.

Coinbase said the products are designed to support the “agentic economy,” where AI agents can make payments, manage finances and complete other tasks on behalf of users.

The company said adoption of AI agents is accelerating, noting that agent-generated traffic surpassed human traffic on its Base documentation pages for the first time last month. However, it added that the internet’s financial infrastructure was built with “one assumption: a human clicking the button,” which has left businesses, developers and users without tools designed for AI agents.

The rollout comes as companies increasingly position stablecoins and blockchain-based payments as infrastructure for AI agents, an emerging use case that several exchanges and payment companies are targeting.

Magazine: Here’s why the CLARITY Act’s ethics deal may be so hard to reach

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Coinbase has announced a major expansion into AI-powered financial services, introducing USDC payment acceptance for businesses via autonomous AI agents. This initiative forms part of a wider effort to enhance the company’s suite of payment, trading, and developer solutions.

AI-driven payments and new standardsCoinbase stated that firms using its business platform can now accept USDC transactions from AI agents, leveraging the x402 payment standard. First launched in May 2025, x402 enables automated stablecoin payments over HTTP for AI agents, applications, and APIs. This new system targets the growing demand for seamless financial transactions carried out by artificial intelligence on behalf of users and institutions.

Mini dictionary: x402 payment standard, a protocol developed by Coinbase that enables AI agents and applications to send and receive stablecoin payments autonomously over HTTP, facilitating financial transactions without direct human input.

USDC is a widely used stablecoin issued by Circle and maintained at a 1:1 peg with the US dollar, designed for secure and efficient digital transactions. Coinbase’s integration of USDC payments aims to simplify financial processes in the evolving area of AI-powered commerce.

New trading tools for businessesCoinbase’s update also introduces advanced AI trading tools, giving users the ability to monitor order books, access real-time market data, and automate trading based on preset conditions. These functions can help businesses respond quickly to market fluctuations and execute strategies using AI capabilities.

The company revealed that it had released a software development kit to support developers in creating agent-driven applications, broadening access to these AI-powered tools. By enabling both businesses and independent developers to deploy AI agents for finance, Coinbase seeks to support a new wave of innovation across sectors.

Underlying trends in the agentic economyCoinbase said these product launches are intended to support the emergence of an “agentic economy,” where AI agents independently manage payments, financial planning, and other administrative tasks. The company observed a recent surge in usage by AI agents, with agent-driven traffic surpassing human traffic for the first time last month on its Base documentation pages.

Despite this rapid adoption, Coinbase emphasized that most web-based financial infrastructure still assumes human interaction, such as pressing a button to approve a payment. This gap, the company argued, leaves businesses and developers without appropriate systems tailored for AI agents, slowing down the adoption of automated financial workflows.

Coinbase underscored the accelerating pace of AI adoption in finance, stating that, “For the first time last month, agent-generated traffic outnumbered human traffic on our Base documentation pages.”

The company continues to develop tools and protocols specifically designed for non-human actors, aiming to ensure that financial systems are equipped for future needs driven by advanced AI technology.

Stablecoins gain momentum in AI and blockchain integrationThe move by Coinbase aligns with broader industry trends, as more payments and exchange companies position blockchain-based stablecoins, like USDC, as essential infrastructure for AI agents. This collaboration between AI and digital assets is seen as key for the next generation of automated commerce and decentralized applications.

Coinbase, established in 2012, is a leading US-based cryptocurrency exchange and fintech company, known for its role in popularizing crypto assets among both retail and institutional investors.

As the use of autonomous agents in finance expands, companies like Coinbase are investing in tools that allow seamless interaction between AI and blockchain systems, advancing the “agentic economy” and transforming how businesses manage digital payments.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Table of contents

An attacker extracted 24.15 million USDC from Arbitrum-based platform AFX Trade by using hot-validator signatures to authorize a massive withdrawal, according to the original report. Security firms traced the exploit to compromised keys tied to the external bridge the project operated, not to any vulnerability in the layer-2 network’s core infrastructure.

Arbitrum quickly confirmed that its native bridge remained untouched. The distinction matters because custom bridges—built by individual teams to connect Ethereum-based applications to L2s—often rely on a smaller validator set, making a key compromise attack more feasible. In this case, the attacker gathered enough valid signatures to move the funds off the platform without triggering standard safety thresholds.

Validator Signature Vulnerability External bridges frequently depend on a multi-sig or proof-of-authority system where a quorum of keys can greenlight transfers. Security researchers noted that the attack vector on AFX Trade points to poor key management practices rather than a smart contract flaw. The funds, denominated in USDC, were withdrawn in a single transaction that observers say would normally require multiple independent approvals.

The incident underscores a pattern that has plagued cross-chain infrastructure for years. Bridges remain the weakest link between networks, and the track record of exploits—from Wormhole to Ronin—has consistently involved governance or validator key compromises. What sets this case apart is the clean isolation from Arbitrum’s own security model, which might shield the broader ecosystem from direct contagion.

While Arbitrum has cemented its place among the top blockchains by developer activity, the proliferation of third-party bridges built atop its scalability framework introduces risks that the core protocol cannot fully mitigate.

What Remains Unknown Details about how the keys were initially compromised are scarce. It is unclear whether the attack originated from a phishing campaign, insider threat, or infrastructure breach. On-chain investigators are tracking the movement of the USDC, but no central issuer or law enforcement agency has yet announced a freeze, and the funds may already be routed through mixers or other obfuscation layers.

The lack of immediate recoverability is likely to weigh on users who parked liquidity on a relatively lesser-known bridge. For traders and liquidity providers inside the Arbitrum DeFi scene, the episode reintroduces a familiar tension: the speed and composability gains of newer bridges often come at the cost of diluted security assumptions.

Broader Impact on Layer-2 Security Narratives AFX Trade’s loss arrives during a period when institutional attention on Ethereum scaling solutions is growing, and security guarantees are becoming a selling point. Arbitrum’s quick separation from the exploit—emphasizing its native bridge’s integrity—suggests that prominent L2 teams are acutely aware of the reputational damage that bridge hacks can inflict, even when they are not technically at fault.

Still, the practical outcome for affected users is the same as in any bridge theft: tokens gone and uncertainty about recourse. The incident does not signal systemic risk for Arbitrum as a network, but it reinforces the caution that DeFi participants must apply when evaluating the custody chains of any application that sits on top of a major rollup.

The next phase of the story will depend on forensic reports and whether the attacker leaves a trace that can tie the wallet activity to a known entity. For now, the exploitation of hot-validator signatures serves as yet another data point in the ongoing struggle to secure cross-chain messaging layers without reintroducing centralization.

AUTHOR

Brenda is a writer with three years of experience specializing in cryptocurrency, artificial intelligence and emerging technologies. She graduated from the University of Mombasa with a degree in Psychology. She has worked at Cryptopolitan and Blockchain Reporter.

AFX Trade, a decentralized exchange running on Arbitrum, just lost $24.15 million in USDC through a bridge attack. And now it’s essentially negotiating with the person who robbed it, offering them roughly $7.2 million to give the rest back.

The white-hat bounty deal, proposed publicly by AFX head of growth Ken C, would let the attacker keep 30% of the stolen funds as a “bounty” in exchange for returning the remaining 70%.

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What actually happened The exploit hit on July 22, 2026, targeting AFX Trade’s custody bridge rather than its smart contracts or Arbitrum’s underlying infrastructure. The attacker compromised off-chain validator signing keys.

Once inside, the attacker drained approximately $24.15 million in USDC from the bridge. They then moved the funds to Ethereum and swapped them for about 12,467 ETH, which was trading at roughly $1,937 per token at the time. AFX suspended its bridge immediately after discovering the breach.

Security firms Blockaid and PeckShield both confirmed the attack and were quick to note that Arbitrum’s native bridge remained completely unaffected.

Part of a much bigger problem AFX wasn’t the only victim that week. The exploit was part of a concentrated wave of attacks on July 22 and 23, which collectively resulted in losses exceeding $35 million across multiple platforms. Zoom out further and July 2026 saw nearly $97 million in total hack-related losses, according to data from Blockaid and PeckShield.

The AFX exploit is particularly instructive because it didn’t involve a smart contract flaw. The contracts worked exactly as designed. The weakness was in the off-chain validator key management. Smart contract audits only cover one layer of security. The operational security of key management, validator selection, and bridge architecture often receives far less scrutiny from users, even though it represents a substantial attack surface.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Circle has signed separate memorandums of understanding with Kakao Group and South Korean fintech operator Toss to explore stablecoin payments, blockchain settlement and digital asset infrastructure in South Korea.

Summary

Circle signed agreements with Kakao Group and Toss to explore stablecoin payment infrastructure in Korea. Kakao plans to assess KRW stablecoins, remittances and merchant settlement using Circle’s blockchain payment technology. Toss will explore USDC-based services, digital wallets and programmable payments while regulations continue developing nationwide. The agreements bring Circle’s USDC and payment technology into discussions with some of Korea’s largest consumer finance platforms. Kakao, Kakao Pay and Kakao Bank will study opportunities around KRW-based digital assets, cross-border payments and tokenized financial services. Toss and Toss Bank will examine similar uses, including digital wallets, overseas payments and programmable onchain transactions.

Kakao Group said its agreement with Circle will combine the KakaoTalk-centered platform ecosystem with Kakao Pay’s payment services, Kakao Bank’s banking capabilities and Circle’s blockchain infrastructure. The companies plan to review payment, settlement and digital asset connectivity as South Korea develops rules for stablecoins and other tokenized financial products.

The initial work will focus on faster payment and settlement systems, according to local reporting. The companies will also assess cross-border remittances, merchant settlement and links between blockchain networks and existing financial systems. Kakao Group said the infrastructure could eventually support services from other Korean companies, although the MOU does not set a launch date or confirm a specific stablecoin issuance model.

Kakao Pay CEO Shin Won-keun, who leads the group’s stablecoin task force, said the companies would “preemptively prepare a Korean digital asset ecosystem with Circle.” Circle executives met Kakao representatives in Pangyo on July 22 before the partnership was announced.

Toss explores USDC and programmable payments Circle also signed a separate MOU with Viva Republica, the operator of Toss, and Toss Bank. The companies will study blockchain-based payments and stablecoin infrastructure, with potential uses covering digital wallets, cross-border settlement and financial services that use USDC.

Toss will review biometric payment tools, USDC-linked financial products and programmable onchain payments. Toss Bank will focus on connecting stablecoin infrastructure with traditional bank accounts and fiat payment networks. The parties also plan to examine compliance, risk management, security and anti-money laundering requirements as Korean rules develop.

The agreement builds on Toss’s broader interest in digital assets. As crypto.news previously reported, the fintech has explored a proprietary blockchain and a possible token while preparing for a Korean stablecoin market. Toss Bank has also been studying blockchain-based payment and settlement models.

Circle expands its South Korea strategy The new agreements follow months of outreach by Circle in South Korea. As crypto.news reported on July 13, the company planned its Current Seoul event to bring banks, exchanges, payment firms and super-app operators together for talks on digital asset regulation and payments. Kakao Pay CEO Shin Won-keun was among the scheduled speakers.

Circle CEO Jeremy Allaire also visited Seoul in April and met executives from Korean banks, exchanges and payment companies. He said Circle did not plan to issue its own won stablecoin. Instead, the company has positioned USDC and its infrastructure as possible links between future KRW-denominated tokens and global payment networks.

That approach is visible in the latest agreements. Circle is not announcing a KRW stablecoin with Kakao or Toss. The companies are studying how local won-based digital assets could work alongside USDC, blockchain settlement systems and existing financial infrastructure. 

Any commercial launch will depend on the final product design and regulatory approvals. Circle Chief Commercial Officer Kash Rajaghi said Korea has “a solid foundation for financial innovation.”

Korean firms prepare for stablecoin rules South Korean technology and financial groups have increased work on won-based stablecoins as policymakers prepare a broader legal framework. Kakao Bank has already explored stablecoin development, while Kakao Pay has been building a wider group strategy around KRW-linked digital assets.

Kakao Group said its Circle partnership could support a shared foundation for stablecoin services beyond its own platforms. The group is also reviewing tokenized financial services, which could use stablecoins as a settlement layer when assets move between blockchain networks and traditional financial systems.

Circle has taken a similar infrastructure-led approach elsewhere in Asia.The company recently partnered with Japan’s JCB to test USDC for corporate treasury transfers and merchant payments. The Korean agreements extend that regional strategy into platforms with large domestic payment and banking networks.

For now, both partnerships remain exploratory. Kakao Group, Toss and Circle have not announced a launch date for a KRW stablecoin or a live consumer payment product. Their agreements instead create a framework to test business models, technical connections and regulatory requirements as South Korea’s digital asset rules take shape.

TLDR: USDC expansion in South Korea now includes Kakao and Toss, giving Circle access to major wallet, banking, payment, and consumer platforms. Kakao will assess remittances, merchant settlement, digital asset links, and possible connections between KRW tokens and Circle infrastructure. Toss will study USDC wallets, programmable payments, biometric authentication, overseas transfers, and settlement links with traditional bank accounts. Both memorandums remain exploratory, with commercial services dependent on technical testing, compliance controls, product design, and regulatory approval. Circle has accelerated its USDC expansion in South Korea through separate agreements with Kakao Group and Toss. The memorandums, signed July 23, focus on blockchain payment infrastructure and regulated stablecoin services. Kakao will assess payments, merchant settlement, remittances, and digital asset links across its major platforms. Toss will study USDC wallets, programmable payments, biometric tools, and connections to bank accounts. 

Both deals remain exploratory and set no launch date. Still, they place Circle beside two consumer finance networks with nationwide reach. The move also extends Circle’s broader outreach to Korean banks, exchanges, payment companies, digital asset platforms, and merchants.

Circle 🤝 Kakao Group

Circle and Kakao Group have signed an MOU to explore blockchain-based payment infrastructure and digital asset technologies in Korea.

Together, we’ll assess opportunities for USDC and Circle’s global payment rails across payments, settlement, and digital… pic.twitter.com/MmZRd19iIH

— Circle (@circle) July 23, 2026

USDC Expansion in South Korea Reaches Kakao Ecosystem Kakao Group will combine Circle’s blockchain infrastructure with services operated by Kakao, Kakao Pay, and KakaoBank. The companies will review payment rails, settlement tools, cross-border transfers, and links between digital assets and traditional finance.

Kakao Pay has more than 40 million registered users, according to local reporting. That scale gives the partnership access to one of South Korea’s largest digital wallet networks. KakaoTalk also anchors the group’s wider consumer ecosystem, while KakaoBank provides regulated banking capabilities.

The agreement may support merchant settlement and remittance services using stablecoin payments. It could also connect future won-denominated digital assets with USDC and global blockchain settlement systems. Circle has said it does not plan to issue its own Korean won stablecoin.

Instead, Circle is positioning USDC as a bridge for international transfers and tokenized financial services. This approach allows local firms to develop KRW products while using Circle’s infrastructure for global liquidity and settlement.

The USDC expansion in South Korea also fits Kakao’s existing blockchain work. Kakao previously launched Klaytn, which later merged into the Kaia network. Yet the new memorandum does not confirm that Kaia will support any planned service.

No commercial product, issuance structure, or rollout schedule has been announced. Kakao and Circle will first assess technical requirements, business models, security standards, and regulatory conditions.

Kakao and Toss Map Stablecoin Payments Across Finance Toss and Toss Bank will examine a broader set of consumer and banking services. Their work covers USDC wallets, programmable payments, biometric authentication, overseas transfers, and bank-linked settlement.

Programmable payments can execute transactions after predefined conditions are met. Toss may test these functions for consumer services, while Toss Bank studies connections with conventional accounts and fiat networks.

The partnership gives the USDC expansion in South Korea another route into a major digital finance platform. Toss operates payment, banking, investment, and insurance services through a widely used mobile application.

Circle’s discussions with Toss also include compliance, anti-money laundering controls, risk management, and cybersecurity. Those areas remain central as South Korean policymakers develop stablecoin and digital asset rules.

Circle has expanded its Korean outreach during 2026. It signed agreements with Upbit and Bithumb in April to support USDC adoption and related technology work. The two exchanges account for most daily cryptocurrency trading volume in the country.

The USDC expansion in South Korea therefore spans exchanges, wallets, banks, and payment applications. Circle is building technical relationships before regulators finalize rules for won-based tokens and blockchain settlement.

Circle reported a USDC supply of $74.4 billion on July 23. The Kakao and Toss memorandums do not guarantee live services. Any launch will depend on product design and regulatory approval.

Arbitrum ekosisteminde faaliyet gösteren merkeziyetsiz sürekli vadeli işlem platformu AFX Trade, yaklaşık 24,15 milyon dolarlık siber saldırının hedefi oldu. Güvenlik şirketlerinin paylaştığı verilere göre saldırganlar, protokolün köprü doğrulama anahtarlarını ele geçirerek milyonlarca dolarlık USDC’yi kendi cüzdanlarına aktarmayı başardı. Olayın ardından Arbitrum’un yerel köprüsünün saldırıdan etkilenmediği açıklanırken, yaşanan ihlalin zincir dışı güvenlik açıklarından kaynaklandığı belirtildi.

Saldırı Akıllı Sözleşmelerden Değil, Doğrulama Anahtarlarından Kaynaklandı Blokzincir analizlerine göre saldırgan, köprü sisteminde kullanılan doğrulayıcı (validator) imzalama anahtarlarını ele geçirerek yaklaşık 24,15 milyon USDC’nin çekilmesini onayladı. Uzmanlar, akıllı sözleşmelerde herhangi bir güvenlik açığı bulunmadığını vurgularken, sorunun zincir dışında saklanan özel doğrulayıcı anahtarlarının ele geçirilmesinden kaynaklandığını ifade etti. Akıllı sözleşme yalnızca geçerli imzaları doğruladığı için işlemi normal bir çekim olarak kabul etti.

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Arbitrum’un geliştiricisi Offchain Labs’ın kurucu ortaklarından Steven Goldfeder, saldırının Arbitrum ağının yerel köprüsüyle ilgili olmadığını açıkladı. Goldfeder, yaşanan olayın tamamen üçüncü taraf bir protokolden kaynaklandığını ve Arbitrum’un resmi köprü altyapısının herhangi bir güvenlik ihlaline uğramadığını belirtti. Bu açıklama, olayın tüm Arbitrum ağı yerine yalnızca AFX Trade’in kullandığı köprü mekanizmasını etkilediğini gösteriyor.

Saldırgan Yeterli Sayıda İmzaya Ulaştı Blockaid’e göre saldırgan, köprünün kullandığı sıcak doğrulayıcı (hot validator) anahtarlarından yeterli sayıda imzayı ele geçirerek yaklaşık 24,15 milyon USDC’nin transferini onayladı. Bu nedenle saldırının, köprü kodundan değil doğrulayıcı anahtarlarının ele geçirilmesinden kaynaklandığı belirtildi.

Arbitrum CEO’su Steven Goldfeder ise olayın Arbitrum’un yerel köprüsüyle ilgili olmadığını, saldırının üçüncü taraf bir protokolden kaynaklandığını açıkladı. Goldfeder, incelemelerin ilgili ekiple koordinasyon içinde sürdüğünü ifade etti.

Zincir üstü verilere göre saldırgan, çaldığı USDC’leri Ethereum ağına taşıyarak yaklaşık 12.467 ETH’ye dönüştürdü.

Varlıklarının Büyük Bölümü Kaybedildi Saldırı öncesinde işlem hacminde önemli artış yaşayan AFX Trade’in toplam kilitli varlıklarının (TVL) büyük kısmının saldırıda boşaltıldığı bildirildi. Yaklaşık 24 milyon dolarlık kayıp, protokolde bulunan varlıkların neredeyse tamamına karşılık geliyor. Bu durum, saldırganın protokoldeki likiditenin en yüksek olduğu dönemi hedef aldığını gösteriyor. AFX Trade’e yönelik yaklaşık 24 milyon dolarlık saldırı, DeFi sektöründe güvenlik risklerinin yalnızca akıllı sözleşmelerle sınırlı olmadığını bir kez daha ortaya koydu. Uzmanlara göre zincir dışı doğrulama anahtarlarının korunması, merkeziyetsiz finans protokolleri için kritik önem taşıyor. Olayın Arbitrum ağının yerel köprüsünü etkilememesi ekosistem açısından olumlu değerlendirilse de, üçüncü taraf protokollerin güvenlik altyapısının güçlendirilmesi gerektiği vurgulanıyor.

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The AFX Trade Bridge exploit has sent shockwaves across the DeFi space. On July 22, 2026, an attacker drained exactly $24.15 million in USDC from a custody bridge operated by AFX Trade on Arbitrum.

Security firm Blockaid detected the breach at approximately 21:30 UTC, confirming that the attack was specific to an AFX Trade bridge exploit and did not touch Arbitrum’s native bridge.

Inside the $24.15M Raid on AFX’s Arbitrum Bridge AFX Trade runs a decentralized perpetual futures protocol on a sovereign Layer-1 chain. It routes USDC deposits through Arbitrum via a custom custody bridge, and that bridge became the target.

On-chain data shows that at 21:30:25 UTC, the attacker triggered a successful withdrawal of exactly 24,150,000 USDC from the bridge contract.

Preliminary on-chain analysis suggests the attacker may have compromised validator hot keys, meeting the 5-of-7 signature quorum required to authorize the withdrawal.

After the drain, the attacker bridged the stolen USDC to Ethereum via Circle’s CCTP and swapped it for 12,467 ETH at an average price of roughly $1,937 per ETH.

AFX Trade(@AFX_XYZ) was exploited for $24.15M!

The exploiter bridged 24.15M $USDC to #Ethereum and bought 12,467 $ETH at an average price of $1,937.https://t.co/m5i1x1EOlz pic.twitter.com/XWD4dWLlJc

— Lookonchain (@lookonchain) July 23, 2026

The conversion into ETH exposed the stolen value to price risk and complicated recovery efforts.

This incident is not isolated. Just one day before the AFX breach, attackers hit the Wanchain-Cardano Bridge and walked away with $13M, proof that cross-chain infrastructure keeps drawing fire in 2026.

Offchain Labs co-founder Steven Goldfeder was quick to separate AFX’s incident from Arbitrum’s core infrastructure.

“We can confirm that the transaction in question originated from a third-party protocol, and the Arbitrum native bridge has not been hacked or exploited in any way,” Goldfeder stated on X.

We're aware of a report of a bridge hack on Arbitrum and are investigating. We can confirm that the transaction in question originated from a third party protocol, and the Arbitrum native bridge has not been hacked or exploited in any way.

We will coordinate with the third…

— Steven Goldfeder (@sgoldfed) July 22, 2026

AFX immediately suspended bridge operations after the breach.

Security Is Not a Feature, It Is the Product BloFin CEO Matt responded to the AFX Trade bridge exploit with a blunt industry warning: X: “24M drained from a protocol-run bridge on Arbitrum today. The canonical bridge held; the custom one didn’t… in this industry, security isn’t a feature you add later. It IS the product.”

24M drained from a protocol-run bridge on Arbitrum today. The canonical bridge held, the custom one didn’t.
Every cycle we relearn the same thing: in this industry, security isn’t a feature you add later. It IS the product. Yield, speed, UX, none of it matters if user funds… https://t.co/8UCi73NOE0

— Matt (@BloFin_CEO) July 23, 2026

Bridge exploits have become a defining threat of 2026. A flash loan exploit hit Summer.fi Vaults in July. Also, a Private Keys Hack Drained the Humanity Protocol in a similar custody-key scenario earlier this year.

The KelpDAO incident in April saw attackers drain roughly $292 million via a LayerZero-powered bridge, a case CoinGape reported showed North Korea’s Lazarus Group was blamed for the KelpDAO LayerZero exploit.

AFX has issued a white-hat bounty offer, return 70% of the funds and keep 30%. The protocol has enlisted SlowMist, Zellic, and the Crypto Defense Alliance to assist in the investigation, per their official update.

We are continuing to work closely with leading blockchain security partners as the investigation progresses. According to SlowMist, the stolen funds remain in the attacker's address and have been reported to the Crypto Defense Alliance (CDA), a collaborative network that includes…

— AFX Trade (@AFX_XYZ) July 23, 2026

AFX has confirmed no recovery at the time of writing. This incident sends a direct custody warning to investors in perp DEXs.

The investigation into the AFX Trade bridge exploit continues. Users should monitor official AFX channels for updates on deposits, withdrawals, and any recovery plan.

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Circle, the company behind the USDC stablecoin, signed a memorandum of understanding with Kakao Group on July 23 to jointly explore blockchain-based payment systems and digital asset technologies in South Korea.

The deal pairs one of the world’s largest stablecoin issuers with the tech conglomerate that essentially runs South Korea’s digital life. Kakao operates everything from the country’s dominant messaging app to its own banking platform, making it a gateway to tens of millions of Korean consumers.

Why Kakao matters For anyone unfamiliar with the Korean tech ecosystem, think of Kakao as a hybrid of WhatsApp, Venmo, and a mid-size bank, all rolled into one corporate umbrella. KakaoTalk, its messaging platform, is used by virtually every smartphone owner in the country. KakaoBank is one of the largest digital banks in Asia.

The MOU is focused on exploration rather than a finished product launch. No specific products or timelines have been disclosed.

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Circle’s broader Korea playbook This isn’t Circle’s first move on the Korean peninsula. In May 2025, the company signed a separate MOU with Hana Bank, one of South Korea’s major financial institutions. That partnership expanded to include Hana Card, with the stated goal of driving USDC adoption for cross-border remittances and treasury services.

Circle has been clear that it has no plans to issue a Korean won-denominated stablecoin. The company is betting that USDC, as a dollar-pegged asset, serves a different and complementary role to whatever local stablecoin products emerge.

KakaoBank reached the development stage for a KRW-pegged stablecoin by late November 2025. So even within this new partnership, the two sides may end up operating parallel stablecoin strategies rather than a single unified one.

Kakao’s blockchain evolution Kakao launched its own blockchain, Klaytn, back in 2019. That chain went through a significant transformation in 2024, merging into a new high-performance Layer-1 blockchain called Kaia.

Circle went public in 2025, and the IPO generated notable interest among Korean retail investors.

What this means for investors South Korea’s cross-border remittance market is substantial, and stablecoins have a genuine cost advantage over traditional wire transfers. Tether’s USDT has historically dominated Asian markets, but Circle’s strategy of embedding USDC directly into regulated financial institutions could chip away at that lead in jurisdictions where compliance matters to partners.

The risk side of the ledger isn’t empty. South Korea banned ICOs in 2017, introduced strict exchange registration requirements, and has periodically spooked markets with regulatory signals.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.