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Home Blog Page 47

Corporate Confidence vs. Public Anxiety: Survey Reveals Views on AI’s Impact and Job Security

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A recent report by nonprofit group Just Capital reveals a stark and significant divergence in sentiment surrounding the adoption of Artificial Intelligence (AI) between corporate leaders and investors, who are nearly unanimous in their optimism, and the general public, who harbor deep-seated concerns, particularly regarding job security and the environment.

The survey, which captured data from institutional investors, corporate executives, and U.S. adults between September and November 2025, underlines the conflicting narratives three years after the launch of ChatGPT kicked off the generative AI rush. While analysts forecast that AI spending could reach into the trillions of dollars by the end of the decade, the public’s apprehension threatens to complicate the corporate drive for rapid deployment.

The overall belief in AI’s beneficial impact highlights the divide between those in the C-suite and the average American. Corporate Leaders are the most enthusiastic, with roughly 93% believing AI will have a net positive impact on society within the next five years. Investors follow closely at 80% optimism, driven by expectations of massive increases in profitability and shareholder returns, while the General Public is far more reserved, with only 58% sharing that net positive sentiment.

Just Capital CEO Martin Whittaker noted that while there is an overall “net positive story” around AI’s impact, the areas of disagreement are critically important for corporate leaders to heed.

The most profound differences emerge when assessing AI’s impact on employment, revealing a disconnect between what executives plan to execute and what workers fear. An overwhelming 98% of corporate leaders and 94% of investors think AI will have a net positive impact on worker productivity. In sharp contrast, only 47% of the general public agrees.

The public’s skepticism is directly tied to job fear. Nearly half of all respondents from the general public expect AI to replace workers and eliminate jobs. Meanwhile, only 20% of corporate leaders concur with this assessment. Conversely, 64% of executives believe AI will help workers be more productive in their current jobs through augmentation, a view only shared by 23% of the public.

This dramatic difference suggests that while companies are focused on using AI to augment existing roles and increase output, the workforce views the same technology as a direct threat. This finding confirms the “widespread public concern that companies’ growing adoption of AI will have swift, direct consequences for workers through job cuts,” according to the report.

Safety, Ethics, and the Neglected Environmental Impact

Although all three groups express concern about the safety and security risks stemming from AI, their priorities and planned spending allocations diverge:

Risk Priorities: Corporate leaders and investors are most worried about large-scale risks like disinformation and malicious use of the technology. The public, however, is additionally concerned about the more abstract fears of loss of control and the tangible threat of environmental impact.

Safety Spending Disparity: When it comes to allocating investment dollars, 60% of investors and half of the public believe companies should spend more than 5% of their total AI investment on safety measures. In opposition, 59% of corporate leaders indicated they would spend up to 5%. This misalignment suggests that while the financial and societal stakeholders demand greater safety investment, the executives making the spending decisions are aiming for a lower allocation.

Environmental Blind Spot: A major risk area exposed by the survey is the environmental impact of AI—specifically the massive energy and water consumption required by data centers for training and running complex models. More than 40% of corporate leaders admitted that environmental issues are not currently being factored into their AI deployment strategy, an oversight that the public clearly fears will have negative consequences.

Just Capital plans to track these critical sentiments around AI deployment quarterly, providing an ongoing barometer for corporate accountability as the technology reshapes the economy.

US Banks Issuing Credit Against Bitcoin Is a Major Milestone on Institutional Adoption

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In a major milestone for institutional adoption, major US banks have begun offering credit lines backed by Bitcoin (BTC) or BTC-linked products like spot ETFs.

This shift, highlighted by MicroStrategy Executive Chairman Michael Saylor at Binance Blockchain Week in Dubai on December 9, 2025, marks a rapid evolution from zero BTC lending programs among the top 10 US banks in Q4 2024 to active facilities today.

Saylor noted that eight of the top 10 banks are now involved, driven by Basel III reforms classifying BTC as a Tier 1 asset, surging demand for BTC-backed loans, and $50 billion in new credit lines issued since September 2025 per PwC and Kaiko Research.

The banks explicitly named by Saylor include; Citi: Preparing US-based BTC custody and credit offerings for 2026 rollout.

JPMorgan: Allowing institutional clients to borrow against BTC holdings by end-2025; expanded blockchain tests for tokenized BTC deposits.

Wells Fargo: Joined in Q4 2025, offering loans against BTC ETFs and direct holdings post-Basel III.

BNY Mellon: Expanded BTC custody to include lending in Q4 2025, holding assets for ETFs.

Charles Schwab: Plans BTC custody and credit against crypto in 2026.

Bank of America: Actively discussing and initiating BTC collateral programs.

This trend aligns with broader regulatory green lights: The OCC’s Interpretive Letter 1184 in March 2025, which allows banks to custody and execute BTC trades, while Letter 1186 in November 2025 permits holding small BTC amounts for network fees.

PNC Bank, partnering with Coinbase, became the first major US bank to offer direct spot BTC trading to private clients in December 2025. Saylor emphasized this as “digital capital creating digital credit,” urging Middle Eastern nations to build BTC-backed financial hubs.

These programs typically offer low-rate USD loans around % APR against BTC collateral at 50-70% loan-to-value ratios, enabling holders to access liquidity without selling. However, risks like volatility-triggered margin calls remain, as seen in past crypto winters. This integrates BTC deeper into traditional finance, potentially unlocking trillions in collateralized lending.

Jack Mallers’ Twenty One Capital Begins Trading on the NYSE

Twenty One Capital—co-founded by Strike CEO Jack Mallers—debuted on the New York Stock Exchange (NYSE) under ticker XXI following a SPAC merger with Cantor Equity Partners.

Backed by Tether (majority owner), Bitfinex, SoftBank ~$330B AUM, and Cantor Fitzgerald a Fed Primary Dealer, the firm launched with a $3.9 billion BTC treasury 43,514 BTC at ~$91,350/BTC, instantly ranking as the world’s third-largest public corporate BTC holder behind MicroStrategy (Strategy) and MARA Holdings.

Mallers, in a CNBC interview, positioned XXI as more than a “Bitcoin HODLer”: “Bitcoin is honest money… We’re going to buy as much Bitcoin as we possibly can” using cash flows, convertible bonds, and raised capital. The firm aims to become the largest public BTC holder while building a “Bitcoin-native” ecosystem, including: Brokerage, exchange, and lending services.

Shares debuted at $10.76 near the $10 PIPE price, dipped ~25% to $10.50 intraday amid broader crypto pressure BTC down 28% from its $126K October peak, and closed at $11.43. This reflects typical SPAC debut jitters but underscores growing corporate BTC treasuries like Strive raised $500M for more BTC buys.

Twenty One’s launch coincides with the banking surge, amplifying BTC’s role as “digital gold.” Mallers’ family ties to finance and Strike’s payment tech position XXI to bridge TradFi and crypto, potentially rivaling MicroStrategy’s model. As Saylor noted, this “killer app” of digital credit on BTC could redefine global markets.

Circle and Aleo Launch USDCx: A Privacy-Enhanced Stablecoin on Aleo Testnet

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Circle, the issuer of the popular USDC stablecoin, partnered with the Aleo Network Foundation to announce the launch of USDCx, a privacy-focused, USDC-backed stablecoin, on Aleo’s testnet.

This development leverages Circle’s newly introduced xReserve infrastructure, marking the second deployment on this platform following a similar integration on the Canton blockchain last week.

This is a collaborative effort with Aleo and Circle, a Layer-1 blockchain specializing in zero-knowledge (ZK) cryptography for confidential transactions.

USDCx addresses a major barrier to mainstream stablecoin adoption: the public visibility of transaction data on most blockchains, which exposes sensitive financial details like wallet balances and payment histories.

Banking-Level Privacy: Powered by Aleo’s ZK proofs specifically zkSNARKs, USDCx encrypts transaction amounts, sender/receiver identities, and histories by default. Users can selectively disclose data for compliance, audits, or regulatory requests, ensuring “confidential yet compliant” flows without full anonymity.

Each USDCx token is 1:1 backed by native USDC held in Circle’s xReserve vaults. It supports seamless cross-chain transfers via Circle’s Cross-Chain Transfer Protocol (CCTP) and Gateway systems, unifying liquidity across networks without risky third-party bridges.

As a smart contract-enabled asset on Aleo, USDCx supports programmable payments, such as automated payroll or conditional transfers, while maintaining privacy. Unlike standard USDC, USDCx loses its privacy features when bridged to non-Aleo chains, emphasizing its design for Aleo’s privacy-native environment.

Live on Aleo Testnet as of December 9, 2025, for developers and early testers to experiment with private stablecoin applications. Mainnet rollout is expected by late January 2026, pending further testing and regulatory alignment.

This is Circle’s new service enabling blockchains to mint their own USDC-backed tokens. It builds on Circle’s broader stablecoin ecosystem, including the upcoming Arc Layer-1 network dedicated to stablecoins.

Public blockchains’ transparency has deterred banks and enterprises from using stablecoins for high-value or sensitive operations, like cross-border payroll or treasury settlements. USDCx flips this by offering “HTTPS for finance”—secure, private defaults akin to how encryption revolutionized the web.

Firms like Request Finance and Toku, which handle global salary payments in crypto, see USDCx as a way to encrypt flows without public exposure. Platforms betting on events (e.g., elections or sports) want to hide trading histories to protect user identities.

With USDC’s market cap exceeding $78 billion nearly double from a year ago, USDCx could accelerate tokenized assets in finance. BlackRock’s CEO Larry Fink recently noted that “every asset can be tokenized,” and privacy tools like this remove a key friction point.

Aleo, backed by investors like a16z, SoftBank, and Coinbase Ventures with $28M raised in 2021, positions itself as the go-to for privacy-preserving DeFi and payments. Circle’s Chief Commercial Officer, Kash Razzaghi, highlighted how USDCx “pairs high-quality reserve assets with on-chain visibility and privacy to strengthen the foundation that businesses rely on as they scale stablecoin use globally.”

Aleo’s COO, Leena Im, added that this shift mirrors the internet’s evolution from HTTP to HTTPS, making privacy the new default. The announcement sparked immediate discussion on X with over 168,000 views on Aleo’s official post within hours.

Users praised it as a “breakthrough” for privacy in crypto, with one noting, “imagine buying coffee and the barista instantly knows your entire net worth—that’s the current state of crypto. Privacy is necessary for real adoption.”

Others highlighted its potential for institutional inflows, questioning if it will “drive more institutions to adopt crypto for privacy transactions.” This launch aligns with regulatory tailwinds, like the U.S. GENIUS Act, which clarifies rules for dollar-pegged stablecoins.

As privacy becomes a core narrative in the 2025-2026 cycle, USDCx could position Circle and Aleo at the forefront of compliant, scalable blockchain finance. For developers, Aleo’s docs detail how to integrate USDCx—check them out to build on testnet today.

U.S. Federal Prosecutors Recommend 12 Year Sentencing for Do Kwon 

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The South Korean co-founder of Terraform Labs— Do Kwon, is the central figure behind the 2022 collapse of the TerraUSD (UST) algorithmic stablecoin and its sister token LUNA.

The event wiped out approximately $40 billion in market value, affecting millions of investors worldwide and triggering a broader “Crypto Winter” that contributed to the downfall of platforms like FTX.

Kwon was accused of misleading investors by promoting UST as a stable, fully backed asset despite internal knowledge of its vulnerabilities.

U.S. federal prosecutors in the Southern District of New York filed a recommendation urging U.S. District Judge Paul Engelmayer to impose a 12-year prison sentence on Kwon for conspiracy to commit wire fraud and securities fraud.

This stems from Kwon’s guilty plea in August 2025 to two felony counts related to defrauding investors between 2018 and 2022. Under the plea agreement, the maximum possible sentence is 25 years, but prosecutors capped their recommendation at 12 years to reflect his cooperation, including the forfeiture of over $19 million in assets and related properties.

Prosecutors described the fraud as “colossal in scope,” arguing that the losses exceeded those from high-profile cases like Sam Bankman-Fried’s FTX ($8 billion), Alex Mashinsky’s Celsius, and OneCoin combined.

They emphasized Kwon’s role in the rapid depegging of UST, which caused cascading market failures and necessitated a lengthy term for deterrence in the crypto sector. No restitution is being sought due to the complexity of calculating global investor losses.

Defense Response and Sentencing Hearing

Kwon’s legal team is countering with a request for a five-year sentence, citing: Nearly three years already spent in detention in Montenegro under “harsh conditions” while fighting extradition— arrested in March 2023 for using a forged passport.

His agreement to forfeit significant assets as partial amends. Potential for double jeopardy, as South Korean prosecutors are seeking a 40-year sentence for similar charges, with extradition likely after any U.S. term.

Judge Engelmayer requested clarification from both sides on Kwon’s foreign charges, including minimum and maximum penalties in South Korea and Montenegro, to inform sentencing. U.S. authorities have indicated they may support Kwon serving the latter half of his sentence in South Korea if he complies with plea terms.

The sentencing hearing is scheduled for December 11, 2025, in Manhattan federal court. Legal observers expect a focus on proportionality, given comparisons to other crypto fraud sentences like Bankman-Fried’s 25-year term, later reportedly reduced.

The U.S. prosecutors’ push for a 12-year sentence on Do Kwon, following his August 2025 guilty plea to wire fraud and conspiracy charges, underscores a hardening stance on crypto-related fraud.

This recommendation caps the plea deal’s maximum at 12 years versus a potential 25, reflecting partial credit for Kwon’s cooperation, including the forfeiture of $19.3 million in assets.

However, U.S. District Judge Paul Engelmayer’s December 8 order demanding clarifications—on Kwon’s 17 months in Montenegrin detention, South Korean charges up to 40 years, victim impact statements, and potential supervised release—highlights unresolved tensions in sentencing.

Legal experts anticipate a final term of 15-20 years, given Engelmayer’s history in financial fraud cases, potentially adjusted for time served abroad. This could set a benchmark for plea bargains in white-collar crypto crimes, where cooperation mitigates but does not erase severe penalties.

A pivotal challenge is cross-border enforcement. Prosecutors have signaled support for Kwon serving the latter half of his U.S. term in South Korea post-compliance, raising questions about extradition treaties, double jeopardy avoidance, and custody credits excluding Montenegrin time for forgery charges.

Failure to coordinate could lead to prolonged appeals or fragmented justice, testing U.S.-South Korean judicial alignment. Kwon’s defense argues for just five years, citing “harsh” pre-trial detention and asset forfeitures as sufficient amends, but this faces steep odds against the fraud’s scale.

This case underscores growing regulatory scrutiny on crypto founders, with potential implications for international prisoner transfers and cross-border enforcement.

WisdomTree Launches Europe’s First Fully Staked Ethereum ETP, as USDC Achieves Native Interoperability between Hyperliquid’s HyperCore and HyperEVM

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WisdomTree, a prominent asset manager, announced the launch of the WisdomTree Physical Lido Staked Ether ETP (ticker: LIST) on December 4, 2025.

This marks the first exchange-traded product (ETP) in Europe to hold 100% stETH—a liquid staking token issued by the Lido protocol—providing investors with direct exposure to staked Ethereum (ETH) and its associated staking rewards without the need for traditional unstaked buffers used in creations and redemptions.

Exclusively backed by stETH, which represents staked ETH on the Ethereum network via Lido. stETH allows staking without lock-up periods, enabling liquidity while earning yields through a rebasing mechanism that accrues rewards directly to token balances.

Initial assets under management is approximately $50 million at launch. Fees: Management expense ratio of 0.50% 50 basis points. Listed on major European exchanges, making it accessible to institutional and retail investors through familiar channels.

Yield Mechanism: Tracks the spot price of stETH plus staking rewards, capitalizing on Ethereum’s Proof-of-Stake transition to a yield-bearing network.

This launch underscores Europe’s progressive regulatory framework for physically backed crypto ETPs, including those with staked assets, which facilitates seamless integration into institutional workflows.

Lido, the protocol powering stETH, dominates Ethereum staking with about 25% market share roughly 8.5 million ETH across 650+ node operators, offering deep liquidity (~$10 billion in DeFi collateral) and robust security.

As Dovile Silenskyte, Director of Digital Assets Research at WisdomTree, noted: “Lido Staked Ether sits at the centre of Ethereum’s transition to a yield-bearing network. It allows holders to earn staking rewards without locking up capital, creating liquidity and efficiency that extends across decentralised finance.”

The product arrives amid growing institutional interest in Ethereum staking. In the U.S., issuers like VanEck have filed for staked ETH ETFs, and BlackRock is exploring staking options for its ETHA trust.

Globally, staking products date back to 2019, but regulated, fully staked ETPs like LIST represent a milestone in bridging DeFi with traditional finance. As disclosed by WisdomTree, investors should be aware of: Price divergence between stETH and ETH during market volatility.

Smart contract risks inherent to the Lido protocol. General cryptocurrency market fluctuations. This ETP is positioned for experienced investors seeking yield-enhanced Ethereum exposure.

By providing regulated access to staking rewards currently 3-5% APY, these products could drive fresh inflows into Ethereum, mirroring the post-ETF rally in spot ETH earlier in 2025. Analysts project ETH could retest $4,900 its prior all-time high or even target $8,000 if approvals materialize, fueled by technical patterns like the “W” bottom formation.

WisdomTree’s LIST debuted with ~$50 million AUM, a modest start but indicative of pent-up demand; similar U.S. products could scale to billions, compressing stETH-ETH premiums and enhancing overall liquidity.

Lido’s stETH underpins both products, controlling 25-33% of staked ETH ~8.5 million ETH, $38 billion TVL. The filings triggered a 7% surge in LDO Lido’s governance token, reflecting speculation on increased protocol usage.

This could solidify Lido’s market share but risks over-reliance, as Ethereum developers have floated caps on liquid staking to prevent centralization. Staked products outpace plain ETH ETFs/ETPs by accruing rewards, making them more attractive amid Ethereum’s post-Merge evolution.

Europe’s LIST avoids “unstaked buffers” for efficient redemptions, setting a blueprint that could pressure issuers like BlackRock exploring staking for its $11.5 billion ETHA to adapt.

Institutions gain tax-efficient, compliant exposure to staking without running validators or navigating lock-ups—stETH’s rebasing mechanism auto-accrues yields while maintaining liquidity ~$10 billion in DeFi collateral.

LIST’s listing on exchanges like Xetra and Euronext democratizes this for European retail and pros, while VanEck’s ETF could do the same in the U.S., lowering barriers via familiar wrappers.

As Lido’s Kean Gilbert noted, stETH is already “the most widely used path” for institutions; these products formalize it.

USDC Achieves Native Interoperability between Hyperliquid’s HyperCore and HyperEVM

Hyperliquid announced that USDC has achieved native interoperability between HyperCore its high-performance trading engine and HyperEVM its EVM-compatible smart contract layer.

This integration enables secure, natively minted cross-chain USDC deposits directly to HyperCore via Circle’s CCTP (Cross-Chain Transfer Protocol), abstracting away the minting process on HyperEVM.

Users can now perform one-click USDC deposits from CCTP-enabled chains starting with Arbitrum, with more coming soon straight to HyperCore, without relying solely on the existing Arbitrum bridge.

Transfers between HyperCore and HyperEVM are now seamless, though some HyperCore-to-HyperEVM moves might temporarily fail if HyperEVM liquidity is low—funds stay safe on HyperCore in those cases, and you can fall back to the Arbitrum route.

No immediate changes needed: Deposits and withdrawals continue to work via the Arbitrum bridge or HyperEVM. The Arbitrum bridge will eventually be deprecated as native minting takes over, but Hyperliquid is prioritizing a gradual, secure rollout to give users and builders time to adapt.

This reduces bridge risks, simplifies UX, and unlocks deeper liquidity for trading, DeFi apps, and yield products on Hyperliquid. Circle’s involvement including CCTP V2 positions USDC as the go-to stablecoin here, with over $4B already bridged to the ecosystem.

Early adopters like Liminal are already enabling USDC-backed yield minting across both layers. Hyperliquid’s official post sums it up well: “This is a major milestone in allowing secure, natively minted cross chain USDC deposits directly to HyperCore.”

This builds on CCTP V2’s burn-and-mint mechanism, enabling seamless, one-click USDC deposits from supported chains like Arbitrum directly to HyperCore—without wrappers, bridges, or multi-step processes.

While the transition is gradual Arbitrum bridge remains active as a fallback, the long-term vision is full deprecation of external dependencies, positioning Hyperliquid as a self-sovereign DeFi powerhouse.

Users can now transfer native USDC from 20+ CCTP-supported chains, Ethereum, Base, Solana straight to HyperCore in a single transaction, abstracting the HyperEVM minting step. This cuts deposit times from minutes/hours via bridges to seconds, with sub-second finality on Hyperliquid’s architecture.

HyperCore-to-HyperEVM transfers might fail temporarily due to low HyperEVM liquidity, but funds stay secure in HyperCore—no losses, just route via Arbitrum as backup. This minimizes UX disruptions while building confidence.

Over $5.3B in USDC is already locked in Hyperliquid’s ecosystem, enabling instant use as collateral for perps/spot trading like $398B in Q3 2025 perp volumes or yield products like HLP vaults 38% APR. It unlocks delta-neutral strategies and tokenized positions without bridge risks.

Lowers barriers for retail and institutions; e.g., BitGo’s custodial integration now pairs with native USDC for secure TradFi inflows. CCTP’s single-transaction flow from source chains to HyperCore simplifies dApp development—e.g., auto-deposits into lending pools or swaps without custom bridge logic.

Builders are urged to migrate to HyperEVM USDC flows now, with Circle providing SDKs and toolkits. Hooks in CCTP V2 allow atomic post-mint actions, auto-lend USDC on HyperEVM, fostering innovative DeFi primitives like cross-chain rebalancing or tokenized perps.

This unifies HyperCore’s deep liquidity ~$1.77B+ DeFi TVL with HyperEVM’s smart contracts. Circle’s new incentives for HyperEVM/HIP-3 builders like grants, points programs and potential validator role signal long-term support. Partners like Across Protocol, Wormhole, and ValantisLabs are already integrating, accelerating multi-chain apps.

If you’re trading or building on Hyperliquid, test a small CCTP deposit to get ahead of the migration.