$2 Billion Milestone for xStocks Underscores the Transformative Potential of Tokenized Assets

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August 6, 2025

xStocks, the tokenized equities product by Backed Finance, has surpassed $2 billion in total trading volume across centralized (CEX) and decentralized exchanges (DEX), with over $100 million in on-chain DEX volume. This milestone reflects growing adoption, with Tesla’s TSLAx leading as the first token to exceed 10,000 holders. Assets under management (AUM) for xStocks are reported at approximately $43.3 million.

Tokenization breaks down high-value assets like equities, real estate, and private credit into smaller, tradable units, democratizing access for retail and institutional investors. For instance, xStocks’ TSLAx token exceeding 10,000 holders shows how tokenization lowers barriers to entry, enabling fractional ownership of assets previously reserved for high-net-worth individuals.

This increased liquidity could transform illiquid markets, such as private equity and real estate, by enabling 24/7 trading and reducing settlement times from days to seconds, as seen with Victory Park Capital’s $1.7B tokenized private credit on zkSync.

Blockchain-based tokenization streamlines processes by automating transactions via smart contracts, reducing intermediaries and operational costs. The World Economic Forum notes that tokenization could save $15-20 billion annually in global infrastructure costs by minimizing settlement risks and manual processes.

Tokenized assets are increasingly integrated with decentralized finance (DeFi) ecosystems, creating new economic opportunities like yield-generating tokens and programmable liquidity hubs. This composability allows tokenized assets to interact seamlessly with DeFi protocols, enhancing capital efficiency.

The rise of AI-driven smart contracts in 2025 will further optimize tokenization by detecting vulnerabilities, automating compliance, and enabling AI-guided portfolio management, reducing human intervention in trading. The tokenized real-world asset (RWA) market is projected to grow significantly, with estimates ranging from $2 trillion by 2030 (McKinsey) to $30.1 trillion by 2034 (Standard Chartered).

xStocks’ milestone aligns with this trend, as its $43.3 million AUM reflects growing institutional and retail interest. Major players like BlackRock, Franklin Templeton, and JPMorgan are driving adoption, with tokenized treasuries reaching $6.9 billion and private credit surpassing $12 billion by March 2025. This institutional backing validates tokenization’s scalability and credibility.

However, regulatory uncertainty remains a hurdle, with 49% of institutional investors citing it as a primary obstacle. The “paradox of programmability” also introduces risks, such as automated transactions amplifying herding behavior or programmed bank runs, necessitating tailored regulatory frameworks.

Tokenization could reshape global capital markets by increasing fungibility across asset classes, simplifying cross-asset allocation, and correlating private and public markets. This shift may lead to more integrated, nimble global asset allocation with reduced friction. However, it introduces systemic risks, such as amplified volatility from programmable tokens and challenges.

Drivers of Tokenized Assets in 2025

Major financial institutions like BlackRock, Citibank, and HSBC are moving from proofs-of-concept to production-scale tokenization. For example, Citibank’s collaboration with Ava Labs to tokenize private equity funds and Slovenia’s $32.5 million digital bond issuance in 2024 signal a shift toward mainstream adoption.

Innovations like Layer-2 scaling (e.g., Optimistic Rollups, ZK-Rollups) and cross-chain interoperability reduce transaction costs and enhance scalability, making tokenized assets more viable for high-volume trading like xStocks. Zero-knowledge proofs (ZKPs) and AI-enhanced smart contracts improve privacy and automation, addressing concerns about secure, large-scale transactions.

High-net-worth and institutional investors plan to allocate 7-9% of portfolios to tokenized assets by 2027, driven by benefits like increased liquidity, lower costs, and transparency. Tokenized treasuries and private credit, as seen with xStocks, are particularly attractive in a high-interest-rate environment.

Retail investors are drawn to fractional ownership opportunities, such as tokenized real estate or commodities, enabling diversification with minimal capital (e.g., $100 for a fraction of a $2,000 gold ounce). Supportive policies, such as the U.S. Executive Order on Digital Financial Technology and relaxed SEC rules for crypto custody, are catalyzing tokenization growth.

Singapore’s Project Guardian and the EU’s DLT Pilot Regime further encourage innovation through regulatory sandboxes. Beyond equities like xStocks, tokenization is expanding into real estate, commodities, private credit, and even novel areas like tokenized time and expertise. For instance, energy firms are tokenizing renewable energy credits, and professionals are exploring tokenized skills for fundraising.

While offering significant benefits like liquidity, efficiency, and accessibility, tokenization also poses challenges, including regulatory hurdles and systemic risks from programmability. As the market is projected to grow exponentially, businesses and investors must navigate these dynamics to capitalize on tokenization’s role in reshaping global finance.

MoonPay’s Virtual Accounts with Axal Yield Offer a Compelling Way to Earn 6-10% APY on Stablecoins

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Paul Ugbede Godwin

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August 6, 2025

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MoonPay has partnered with Axal to launch “Virtual Accounts,” enabling users to earn 6-10% APY on stablecoins like USDC and USDT through Axal Yield.

This service integrates MoonPay’s Virtual Accounts with Axal’s DeFi yield strategies, automatically routing deposited stablecoins into a diversified portfolio of lending protocols and liquidity pools. The setup requires no gas fees, no custodial risks, and minimal user intervention, with funds managed by a smart automation engine for optimized returns and risk management.

The service is live and accessible globally, though specific yields depend on market conditions and DeFi protocol performance. Note that stablecoin yields carry risks, such as potential de-pegging or protocol vulnerabilities, as seen in past events like OUSD’s de-peg in 2020.

MoonPay’s integration with Axal Yield simplifies access to DeFi for retail and institutional users by offering a one-click solution to earn 6-10% APY on stablecoins. This lowers the technical barrier, as users don’t need to navigate complex DeFi protocols or pay gas fees, making passive income opportunities more mainstream.

This could drive broader adoption of stablecoins and DeFi, particularly among non-crypto-native users who rely on MoonPay’s user-friendly fiat-to-crypto on-ramp (supporting 170+ cryptocurrencies and multiple payment methods like credit cards, PayPal, and Apple Pay). It aligns with MoonPay’s goal of bridging fiat and digital asset worlds.

By enabling stablecoin deposits to automatically generate yield through Virtual Accounts, MoonPay enhances the utility of USDC and USDT beyond trading or remittances. Stablecoins become a viable alternative to low-yield traditional savings accounts, as noted by Axal’s CEO: “The vast majority of money on Earth sits idle in cash or low-interest accounts.”

This could shift user behavior, encouraging holding stablecoins for passive income rather than converting to fiat, especially in high-inflation economies where stablecoins already serve as a store of value. It may also increase stablecoin market caps, currently at $190 billion, with USDT ($151 billion) and USDC ($60 billion) dominating.

Axal Yield’s non-custodial model, secured by TEE-enforced signing policies and batched execution, ensures users retain control of their funds, reducing custodial risks. The absence of gas fees and manual intervention further lowers costs and complexity.

Stablecoin yields face increasing regulatory scrutiny globally, with jurisdictions demanding transparency and adequate reserves. MoonPay’s compliance (Bitlicense, MiCA, SOC2, ISO, PCI) and USDC’s regulatory alignment (audited reserves) position it favorably compared to USDT, which faces challenges in Europe due to non-MiCA compliance.

Yield Strategies Behind Virtual Accounts

MoonPay’s Virtual Accounts leverage Axal Yield’s smart automation engine to generate 6-10% APY through diversified DeFi strategies. Funds deposited into Virtual Accounts (in USDC or USDT) are routed to Axal’s yield engine, which allocates capital across a curated portfolio of DeFi lending protocols like Morpho, Euler, and Base.

The focus is on low-risk, diversified lending strategies, dynamically rebalanced based on real-time market signals. Stablecoins are lent to borrowers on DeFi platforms, earning interest from lending fees. The engine optimizes returns by reallocating funds to protocols with the highest risk-adjusted yields, targeting stable performance.

A portion of funds is allocated to liquidity pools, where stablecoins provide liquidity for decentralized exchanges (DEXs) or trading pairs, earning fees from trades. Axal’s automation ensures capital is moved to pools with optimal fee generation and low impermanent loss risk.

Users earn a share of trading fees proportional to their pool contribution. Stablecoin pools (e.g., USDC/USDT) are less prone to impermanent loss compared to volatile asset pairs, making them safer for yield generation. Low liquidity or sudden market shifts can reduce fees or cause temporary losses. Past DeFi exploits, like the 2022 Terra/UST collapse, underscore the need for careful protocol selection.

The strategy of diversified lending and liquidity pools, powered by automation, balances returns and risks but isn’t foolproof. Users must weigh protocol vulnerabilities, regulatory uncertainties, and fees against potential gains. While this could accelerate DeFi and stablecoin adoption, careful due diligence is essential to navigate the inherent risks of yield-generating strategies.

Gemini Teased ‘Horizon’ and Its Creating Buzz on X

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Paul Ugbede Godwin

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August 6, 2025

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Gemini’s upcoming project named “Horizon” seems to be generating some buzz on X. Specifically, a post from the Gemini account hints at excitement around this project, though details are sparse and cryptic—typical teaser strategy.

The post mentions a bullish mindset and market enthusiasm, suggesting Horizon might be tied to something finance-related or crypto-driven, given Gemini’s focus on cryptocurrency exchange services. Given Gemini’s history as a crypto exchange founded by the Winklevoss twins, Horizon might involve decentralized finance, a new trading feature, or an expansion of their existing offerings like staking or custody services.

Horizon could be a new product or platform designed to further integrate cryptocurrency with traditional financial systems, aligning with Gemini’s mission to make crypto accessible and trusted. Given Gemini’s emphasis on regulatory compliance and security (e.g., SOC 1 and SOC 2 Type 2 certifications, NYDFS licensing).

Horizon might introduce a new financial instrument, such as an advanced stablecoin, tokenized securities, or a DeFi protocol tailored for institutional investors. This could accelerate mainstream adoption by offering a secure, regulated entry point for traditional investors, potentially increasing crypto’s legitimacy. However, it might also centralize certain DeFi aspects, alienating purists who value decentralization over institutional integration.

With the global crypto market valued at $3.3 trillion and institutional inflows growing (e.g., spot Bitcoin ETFs), Horizon could attract significant capital, especially if it leverages Gemini’s custodial services or partnerships like those with Samsung or Evolve Funds. Gemini’s recent moves, like expanding tokenized stock offerings in the EU and securing an Investment Firm License in Malta.

Institutional adoption could drive liquidity and stabilize prices, but it risks prioritizing large players, potentially sidelining retail investors who lack access to such tools. Gemini’s new CFO, Dan Chen, emphasized regulatory clarity as “foundational” for crypto’s growth, especially under a potentially pro-crypto U.S. administration in 2025.

Horizon might introduce a framework or product that aligns with evolving regulations, such as the EU’s MiCA or U.S. policies under Trump’s crypto-friendly stance. A compliant product could set a precedent for other crypto firms, reducing regulatory risks and encouraging broader adoption. However, it could also raise barriers for smaller, less-regulated competitors, consolidating market power among giants like Gemini.

Horizon might build on Gemini’s existing offerings, like the Gemini Credit Card (crypto rewards), Gemini Dollar (GUSD stablecoin), or staking services. It could involve a novel financial product, such as a crypto-backed loan platform, a next-generation stablecoin, or a retail-focused DeFi app, given Gemini’s aim to make crypto accessible to all. Such products could democratize access to crypto earnings, especially for retail users, but high fees could deter casual investors.

If Horizon prioritizes institutional features, it could marginalize retail investors, who already feel priced out by high fees and limited token selections (Gemini supports 80+ coins vs. competitors like Binance with broader offerings). Conversely, a retail-focused product like a crypto rewards card could bridge this divide, though past Gemini products (e.g., Earn) have faced scrutiny for misleading retail users.

Gemini’s regulatory focus contrasts with the decentralized ethos of many crypto advocates, who see DeFi as a way to bypass traditional financial gatekeepers. Horizon’s alignment with compliance (e.g., NYDFS, FCA) might clash with the decentralized community’s preference for permissionless systems. If Horizon is a centralized platform, it could deepen the ideological split between CeFi and DeFi proponents.

Crypto’s promise of financial inclusion is tempered by access barriers, such as high fees, complex KYC requirements, and limited coin offerings. Gemini’s focus on security and compliance often comes at the cost of higher fees, which disproportionately affects lower-income users. If Horizon introduces premium services, it could exacerbate wealth disparities, favoring high-net-worth individuals or institutions.

While Horizon’s promise of “the future of finance” sounds bold, Gemini’s track record raises caution. The Gemini Earn debacle, where investors were locked out of $1.1 billion in assets due to Genesis’s bankruptcy, highlights the risks of overpromising. Horizon’s success hinges on avoiding similar missteps, especially if it involves lending or yield-generating products.

The crypto market’s volatility, with Bitcoin above $100,000 and Solana’s retail-driven surge, suggests Horizon could capitalize on bullish sentiment. However, the divide between institutional and retail, centralized and decentralized, and regulated and unregulated markets is a structural challenge. Horizon might bridge some gaps but risks deepening others if it prioritizes one group over another.

Gemini’s Horizon project could redefine crypto’s role in finance by enhancing institutional access, regulatory compliance, or innovative products like tokenized assets or stablecoins. However, it risks widening divides between institutional and retail investors, centralized and decentralized systems, and regulated and unregulated markets.

U.S. SEC’s Clarification That Liquid Staking Activities Are Not Securities Is a Landmark Decision for Blockchain

By

Paul Ugbede Godwin

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August 6, 2025

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U.S. Securities and Exchange Commission (SEC) has clarified that certain liquid staking activities and associated Staking Receipt Tokens do not constitute securities under federal securities laws, specifically Section 2(a)(1) of the Securities Act of 1933 and Section 3(a)(10) of the Securities Exchange Act of 1934.

This guidance, issued by the SEC’s Division of Corporation Finance on August 5, 2025, states that liquid staking—where crypto assets are staked through a protocol or provider and a liquid staking receipt token is issued to evidence ownership—does not meet the criteria for an investment contract under the Howey Test.

The key reason is that the value of these tokens and any rewards are tied to the underlying crypto assets and protocol staking activities, not the entrepreneurial or managerial efforts of the staking provider or third parties.

As a result, participants in these liquid staking activities, including providers minting, issuing, or redeeming Staking Receipt Tokens, are not required to register these transactions with the SEC or seek exemptions, unless the underlying crypto assets are themselves part of an investment contract.

This clarification, part of the SEC’s Project Crypto initiative under Chair Paul Atkins, aims to provide regulatory clarity and has been welcomed by market participants for reducing uncertainty around decentralized finance (DeFi) protocols.

However, some, like Commissioner Caroline Crenshaw, argue that certain staking services might still be securities based on prior court rulings, highlighting ongoing debates within the SEC. By exempting liquid staking activities from securities registration, the SEC alleviates the need for staking providers and DeFi protocols.

Protocols can now operate with greater confidence, knowing that their liquid staking activities are not subject to federal securities laws, as long as the underlying crypto assets are not investment contracts. Liquid staking, which allows users to stake assets while retaining liquidity through tradable receipt tokens (e.g., stETH on Lido), is a cornerstone of DeFi.

The SEC’s stance encourages broader participation by retail and institutional investors, as the regulatory risk of staking tokens being deemed securities is diminished. This could lead to increased capital inflows into DeFi protocols, as investors gain assurance that liquid staking tokens are not subject to the same scrutiny as securities.

Developers can innovate more freely in designing staking mechanisms, yield farming strategies, and tokenized derivatives without fear of SEC enforcement actions. This fosters experimentation with new DeFi products and services. The ruling may spur the creation of more sophisticated liquid staking protocols.

Institutional investors, previously cautious due to regulatory ambiguity, may now feel more comfortable engaging with liquid staking protocols. This could drive significant capital into blockchain ecosystems, particularly Ethereum and other proof-of-stake (PoS) networks.

The SEC’s progressive stance under Project Crypto positions the U.S. as a more blockchain-friendly jurisdiction, potentially attracting projects and talent that might otherwise migrate to jurisdictions with lighter regulatory frameworks (e.g., Singapore, Switzerland). This could counter the trend of blockchain companies relocating offshore due to regulatory uncertainty.

Liquid staking enhances the utility of staked assets by allowing users to use them in DeFi while still earning staking rewards. This ruling could accelerate the growth of PoS networks, as staking becomes more accessible and appealing. Increased liquidity and participation in staking could stabilize PoS blockchains.

Liquid staking makes participating in PoS networks more attractive by eliminating the lock-up periods that deter users. With regulatory barriers lowered, more users can stake assets like ETH, ADA, or SOL while using receipt tokens in DeFi, driving adoption of PoS chains.

Liquid staking tokens are a key building block for DeFi. With the SEC’s ruling, protocols like Lido, Rocket Pool, and Ankr can scale without fear of securities violations, leading to deeper integration with lending platforms, DEXs, and yield aggregators. This could create a flywheel effect: more staked assets ? more liquid tokens ? greater DeFi liquidity ? higher yields and utility ? increased user participation.

The precedent set by the SEC’s guidance could extend to other tokenized assets, encouraging the tokenization of real-world assets (RWAs) like real estate or bonds on blockchain. If receipt tokens for staked assets are not securities, similar logic might apply to other tokenized representations, unlocking new markets.

Liquid staking tokens can be used across multiple blockchains via bridges and layer-2 solutions. The SEC’s clarity may encourage developers to create cross-chain staking protocols, enhancing interoperability and creating seamless DeFi ecosystems across networks like Ethereum, Polkadot, and Cosmos.

This ruling could revolutionize blockchain by accelerating the growth of PoS networks, expanding DeFi ecosystems, and fostering mainstream financial integration. However, ongoing vigilance is needed to address remaining regulatory nuances, security risks, and infrastructure challenges to fully realize this potential.

The Secret Language of Maps: Beyond Just Navigation

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TI Partners

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August 6, 2025

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To a cartography enthusiast, a map is never just a tool for getting from A to B. It’s a time capsule, a political statement, and a work of art all rolled into one. While modern GPS offers sterile efficiency, historical maps invite us into a conversation with the past. They speak a rich, symbolic language of power, mythology, and discovery. Learning to read this language transforms a simple piece of paper into a captivating story waiting to be told.

More Than Lines: The Unseen Stories in Every Map

Every map is a cultural artifact, deeply colored by the worldview of its creator and the era in which it was made. The choice of what to include, what to omit, and how to represent the world reveals a hidden narrative. This layering of meaning is a hallmark of thoughtful design. Mapmakers often included personal marks or hidden jokes, a tradition of ‘Easter eggs’ that continues today in all forms of digital design, from complex software to entertainment platforms like https://runa.casino/en/. But for cartographers, these hidden elements were not just for fun; they were a core part of the map’s narrative, speaking volumes to those who knew how to listen.

Decoding the Clues: Key Elements of Map Language

The secret language of maps is communicated through a variety of elements, each adding a different layer to the story. By paying close attention to these details, you can begin to understand the deeper context of the maps you collect and admire.

Toponymy: The Power of a Place Name

The names on a map—or toponymy—are a powerful historical record. The renaming of places can signal a change in political power, such as the colonial practice of replacing indigenous names with European ones. The persistence of old names, on the other hand, can reveal deep-seated cultural heritage. A map’s place names are a direct link to its political and social history.

Cartouches and Compasses: The Art of Information

On antique maps, the title block, or cartouche, was far more than a simple label. These ornate, decorative frames were a canvas for the cartographer to showcase artistic skill, dedicate the map to a wealthy patron, or include crucial information about scale and projection. Similarly, an elaborate compass rose didn’t just point north; it was a statement of craftsmanship and a key part of the map’s aesthetic appeal.

The Mythical Beasts of “Here Be Dragons”

One of the most thrilling aspects of old maps is seeing how cartographers depicted the unknown. Lacking satellite imagery, they filled the vast, unexplored oceans and lands with imaginative illustrations. These were more than just decoration; they were a visual representation of European fears and legends about the wider world.

Common symbols found in these uncharted territories include:

Sea serpents and leviathans ruling the oceans.
Wind heads (putti) blowing from the corners of the map.
Depictions of mythical kingdoms, such as that of Prester John.
Scenes of cannibalism or other “savage” practices attributed to foreign peoples.

How Projections Shape Our Worldview

No flat map can accurately represent a spherical globe; every map projection involves some form of distortion. The type of projection a cartographer chooses fundamentally shapes our perception of the world, often with unintended political consequences.

Projection	Strengths	Weaknesses/Distortions
Mercator	Preserves shape and direction, excellent for navigation.	Massively distorts the size of landmasses near the poles (e.g., Greenland appears huge).
Peters Gall	Accurately represents the relative size of countries.	Distorts the shape of continents, making them appear elongated.
Robinson	A compromise, with minor distortions to both size and shape.	Does not excel at any one thing; it’s a visual compromise.

The widespread use of the Mercator projection, for instance, has been criticized for reinforcing a Eurocentric worldview by exaggerating the size of northern continents.

This table shows a few of the most common symbols you might find on antique maps and what they could signify.

Symbol (Description)	Potential Meaning
A ship in full sail	A known sea route, maritime power, or trade.
An anchor	A safe harbor or port.
A stylized crown	The seat of a king or a royal claim to the territory.
Crossed swords	The site of a significant battle.

Reading the World Anew

A map is a document that invites curiosity. It asks us to look closer, to question its assumptions, and to appreciate the artistry and history woven into its very fabric. By learning to decode the secret language of maps, we move from being passive observers to active readers, engaging in a rich dialogue with the past.

The next time you look at a map, don’t just see a route. Look for the story. Pull out a familiar atlas or visit your library’s digital collection, and see what secrets you can uncover. You’ll never look at the world the same way again.