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Home Blog Page 9

Kraken’s xStocks Platform Implemented xPoints Rewards System 

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Kraken’s tokenized stock platform, through its xStocks initiative, a Kraken-linked platform for tokenized U.S. equities and ETFs, has recently implemented a points-based rewards system called xPoints.

This program, launched around March 10, 2026, incentivizes user engagement in the tokenized stocks ecosystem. Participants can earn xPoints by: Trading tokenized U.S. equities; assets like tokenized Tesla, Apple, or S&P 500-related tokens. Providing liquidity to supported trading pairs or pools. Using these tokenized assets in decentralized finance (DeFi) applications or integrations.

The system tracks activity across various supported venues, exchanges, liquidity pools, and dApps. This comes as the broader tokenized equities sector has surged, with total market value exceeding $1 billion and growing traction among major players.

The rollout has sparked speculation in the crypto community that xPoints could be a precursor to a future ecosystem token potentially for governance, rewards redemption, fee rebates, or other utilities. Points programs like this are a common pattern in crypto projects before launching a native token, though xStocks (and Kraken) has not officially announced or confirmed any token plans yet.

xStocks offers tokenized representations of real-world stocks/ETFs (backed 1:1 by underlying assets), issued as on-chain tokens (e.g., SPL tokens). They enable 24/7 weekday trading for eligible users primarily non-U.S., with availability in regions like the EU and beyond.

Recent partnerships, such as with Nasdaq for future tokenized equity developments targeting 2027 launch, highlight growing institutional interest in this space. This move aligns with Kraken’s push into real-world asset (RWA) tokenization, boosting liquidity and adoption in tokenized equities.

Coinbase’s involvement in tokenized stocks is primarily focused on building infrastructure and laying groundwork rather than offering a fully live retail tokenized stock trading platform like some competitors. Coinbase Tokenize is Coinbase’s dedicated end-to-end platform for tokenizing real-world assets (RWAs), including equities, private companies, funds, real estate, and more.

It targets institutional users with features for issuance, custody, compliance, and trading of tokenized assets. It’s positioned as the foundational tech to connect traditional finance (TradFi) to on-chain finance, emphasizing institutional-grade security and performance. This is live and accessible via coinbase.com/tokenize, but it’s geared toward asset managers, issuers, and financial providers rather than direct retail trading of tokenized stocks.

Coinbase introduced conventional stock and ETF trading in early 2026 for U.S. customers, with zero-commission trades, fractional shares starting at $1, 24/5 hours, and integration in the main app partnering with Yahoo Finance for discovery. This is not tokenized—it’s traditional brokerage-style trading. Tokenized equities are explicitly called out as the longer-term goal.

Coinbase noted: “More information regarding tokenized equities will be available in the coming months,” and clarified that tokenized equities won’t be offered through their standard U.S. brokerage entities (Coinbase Capital Markets or Coinbase, Inc.) to navigate regulatory constraints. This suggests a separate structure, likely on-chain via their Base blockchain (Ethereum L2), possibly using AMM liquidity pools, transfer agents, and focusing initially on crypto-correlated or globally accessible equities.

As of now, no widespread retail tokenized stock trading is available directly on Coinbase for U.S. users due to SEC regulations. Coinbase has been pushing for clearer pathways (filing requests in mid-2025 and ongoing advocacy), but offerings remain limited or pending approvals.

CEO Brian Armstrong has repeatedly emphasized tokenized stocks as transformative—enabling 24/7 global trading, on-chain composability using tokenized stocks in DeFi, instant settlement, and fractional ownership without legacy rails. He compares it to stablecoins’ growth trajectory.

Tokenized equities overall have surged: The sector hit over $1 billion in on-chain value recently driven by platforms like xStocks, Ondo, Backed Finance on Solana/Base, etc., with total RWAs exceeding $20–30B+. Coinbase is actively involved in the ecosystem—e.g., supporting tokenized assets indirectly, listing related products, and building toward an “everything exchange” vision that includes tokenized RWAs, prediction markets, and more.

Coinbase is heavily invested in the future of tokenized stocks through Coinbase Tokenize and regulatory/roadmap efforts, with traditional stock trading as a bridge. Full retail tokenized stock access especially for U.S. users appears imminent but not yet rolled out—watch for updates in the coming months, as hinted in their announcements. This aligns with the industry’s rapid RWA growth, similar to Kraken’s points system signaling ecosystem expansion.

Apple Slashes App Store Fees in China to 25%, 12% for Small Businesses and Mini Apps

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Apple announced Thursday that it will reduce commission fees collected through its China App Store, lowering the standard rate on in-app purchases and paid transactions from 30% to 25% effective Sunday, March 15 — World Consumer Rights Day in China.

Developers enrolled in Apple’s Small Business Program or Mini Apps Partner Program will see fees drop from 15% to 12%. The adjustment applies to all developers whose apps are distributed via the China App Store, including international companies such as Duolingo, which generates approximately $50 million annually from the Chinese market.

Apple did not disclose the exact financial impact, but the state-owned Economic Daily estimated the change would save Chinese developers more than 6 billion yuan ($873 million) in annual operating costs.

“This adjustment will… improve consumption choices and information transparency,” the Economic Daily wrote in a Thursday report that framed the fee cut as a victory for Chinese digital consumers.

The newspaper projected that prices for membership subscriptions, game recharges, live-streaming tips, mini-programs, and other scenarios could decrease, potentially saving consumers up to nearly 1 billion yuan per year.

Breakthrough for Super Apps and Mini-Program Ecosystem

The reduction is particularly significant for operators of China’s “super apps” — platforms such as Tencent’s WeChat and ByteDance’s Douyin (TikTok’s Chinese version) — which host millions of third-party mini apps and mini-programs. These lightweight applications operate within the host app and often rely on in-app purchases or paid services.

Lower fees will directly benefit developers building within these ecosystems, potentially spurring innovation and competition in areas such as gaming, education, e-commerce, and social commerce. Rich Bishop, founder of AppInChina — a consultancy that helps foreign developers navigate the Chinese market — told CNBC: “In China’s case, [Apple] have been talking with the IT ministry and other departments, and have been requested or pressured to reduce their fees.”

Bishop noted that the timing, coinciding with World Consumer Rights Day, carries symbolic weight. In 2013, state broadcaster CCTV publicly criticized Apple’s after-sales service, forcing a rare public apology from the company.

Global Scrutiny of the ‘Apple Tax’ Meets Local PressureApple’s 30% “Apple Tax” has faced antitrust scrutiny worldwide. The European Union forced a reduction to 10–17% for most developers under the 2024 Digital Markets Act. In the U.S., Apple now allows alternative payment methods in certain cases following legal challenges. In China, Bloomberg News reported last year that the country’s antitrust regulator was considering an investigation into Apple’s App Store policies, while a consumer antitrust complaint was filed in October 2025 over fee structures.

The fee cut also applies to international developers distributing in China, providing broad relief. Bishop highlighted the potential benefit for apps like Duolingo.

“This will be saving them a decent amount of money,” he said.

Bishop cautioned that further concessions could follow. “In future, the Chinese government may request Apple to collect App Store revenues in China instead of overseas, and further tighten regulatory oversight for foreign apps published in China,” he said.

Apple has previously removed apps such as virtual private networks (VPNs) from the China App Store at the request of internet regulators. VPNs — which allow users to bypass censorship by masking device location — remain a sensitive issue in China, where internet-connected devices carry unique codes disclosing their location.

Apple’s move comes as Google last week reduced Android developer fees worldwide, intensifying competition in app-store economics. The adjustment underlines the unique pressures Apple faces in China, its second-largest market, where regulatory influence is strong and consumer-protection campaigns carry significant political weight.

While the fee reduction will ease costs for developers and potentially lower prices for Chinese consumers, it also points to the ongoing global debate over app-store commission structures. Regulators in multiple jurisdictions continue to scrutinize the 30% standard, with outcomes ranging from mandated fee reductions to alternative payment rails and sideloading options.

In 2020, Apple announced that existing app-makers and new developers who earned $1m or less from Apple’s marketplaces would only have to give up a 15% cut starting in 2021. That reduced by half the standard rate of 30%. The decision follows widespread criticism by developers of the fees Apple charges, which exacerbated the company’s antitrust scrutiny.

The China-specific cut provides immediate relief to developers and super-app ecosystems, for now, while positioning Apple as responsive to local regulatory signals. The longer-term impact, including potential revenue implications for Apple and behavioral changes among developers, will become clearer in the coming quarters as transaction volumes reflect the new pricing.

Trump Presses Fed For Rate Cuts As Iran War-Driven Oil Surge Clouds Inflation Outlook

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Donald Trump renewed his call for immediate interest-rate cuts on Thursday as surging oil prices tied to the escalating war with Iran began reshaping expectations for U.S. monetary policy.

“He should be dropping Interest Rates, IMMEDIATELY,” Trump wrote on Truth Social, directing the message at Jerome Powell, chair of the Federal Reserve.

The public pressure comes as the conflict in the Middle East injects fresh uncertainty into the global inflation outlook, complicating the central bank’s path toward easing borrowing costs.

Markets Shift Away From Rate Cuts

Since the United States and Israel launched strikes on Iran on February 28, financial markets have sharply revised their expectations for U.S. interest-rate policy.

Before the conflict began, traders had expected the Fed to deliver two quarter-percentage-point rate cuts by the end of the year. Now, interest-rate futures markets are barely pricing in one reduction, underscoring how quickly sentiment has changed. The shift follows a familiar dynamic in global markets: geopolitical shocks that disrupt energy supply often push oil prices higher, and that feeds directly into inflation.

For the Federal Reserve, which is attempting to bring inflation back toward its 2% target, a new oil-driven price surge could delay any move toward looser policy.

Energy markets have been roiled by the war’s impact on shipping through the strategically critical Strait of Hormuz, a narrow maritime corridor that carries roughly one-fifth of the world’s oil supply.

Iran’s new supreme leader, Mojtaba Khamenei, said Thursday that the passage would remain closed, intensifying concerns about global supply shortages. The statement helped drive crude prices higher, with West Texas Intermediate crude settling at $95.70 per barrel, close to levels not seen in several years.

Energy economists say that if disruptions persist, the resulting supply shock could ripple through transportation, manufacturing, and agriculture, lifting prices across a wide swath of the global economy.

Oil’s importance in the global economy means that higher crude prices rarely remain confined to the energy sector. More expensive oil typically leads to higher gasoline and diesel prices, raising transportation costs for companies and pushing up the cost of shipping goods.

Those higher logistics expenses eventually filter into the prices consumers pay for everything from groceries to manufactured products. Food prices could face additional pressure because the Strait of Hormuz is also a critical route for fertilizer shipments, an essential input for global agriculture.

Disruptions in fertilizer supply can quickly affect crop production costs, increasing the likelihood of higher food inflation worldwide.

Inflation Outlook Worsens

Economists are already adjusting their forecasts.

Analysts at Goldman Sachs said Thursday that they now expect the Fed’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, to rise to 2.9% by December, well above the central bank’s long-term target.

The bank has also pushed back its forecast for the Fed’s next rate cut to September, from June previously, citing the risk that sustained energy price increases could slow the disinflation process. Such a delay would reinforce the “higher-for-longer” interest-rate environment that has weighed on housing, corporate borrowing, and consumer spending over the past two years.

Leadership Change Adds Another Layer Of Uncertainty

The policy debate is unfolding just weeks before a leadership transition at the Federal Reserve. Trump has nominated former Fed governor Kevin Warsh to succeed Powell when the current chair’s leadership term ends in mid-May. Warsh is widely viewed by investors as more open to cutting interest rates.

Even so, the surge in oil prices may limit how quickly the central bank can pivot toward easier monetary policy. Historically, the Fed has been cautious about lowering rates during periods of energy-driven inflation because doing so risks amplifying price pressures.

However, the clash between political calls for lower borrowing costs and market expectations of sustained inflation is seen as a sign of how the Iran conflict is beginning to reshape the global economic outlook.

Economists warn that if energy prices continue climbing and supply disruptions intensify, the war could force central banks around the world to maintain tighter monetary policies than previously expected. For businesses and consumers already grappling with elevated borrowing costs, that would mean a longer period of expensive credit and persistent price pressures.

We Begin Today March 14: Build Your Own Mini-ChatGPT in Tekedia AI Lab

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Tekedia AI Lab: From Technical Design to Deployment begins today, Saturday, March 14. I will start with a broad introduction to AI, connecting ideas from natural philosophy to modern computing to provide the conceptual foundations.

By the end of tomorrow’s session, you will have a mini-ChatGPT running on your personal computer or laptop.If you would like to learn with us, registration is still open here.

Vibe Coding Thriving for Prototyping But Loopholes Still Persist Which Makes Developers Irreplaceable 

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Vibe coding—the loose, prompt-driven style popularized by figures like Andrej Karpathy in 2025, where you describe ideas in natural language and let AI; Claude, Cursor, Gemini, etc. generate, iterate, and sometimes fully build apps—remains alive and thriving for prototyping, weekend projects, personal tools, and early MVPs.

It’s not disappearing because it’s incredibly fun and fast for exploration. Tools and workflows around it keep evolving, with people still sharing “vibe coding sesh” stories daily. But the broader “move fast and let AI break things” mindset—pushing AI-generated code straight into production with minimal oversight, often after mass engineer layoffs to chase efficiency—is slamming into hard limits.

Liability is becoming the wall. Recent incidents highlight this: High-profile outages tied to over-reliance on autonomous AI agents; one case reportedly nuked a production environment while “fixing” a config. Growing reports of massive technical debt from unchecked AI output: spaghetti logic, security holes, scaling failures, memory leaks, and unmaintainable black-box code that even the original “vibe coder” can’t debug.

Companies that fired or reduced headcount aggressively to bet on AI replacement are now discovering the catch: AI produces volume, but humans still own the accountability. When things go wrong—data breaches, compliance violations, lost revenue, or regulatory scrutiny—the buck stops with the engineers who approved and merged it, not the model.

Legal and insurance pressures are rising; some predict personal liability clauses for AI-approved code will spread from Big Tech downward. The irony is sharp: firms wanted AI to replace engineers ? they cut the very people who could reliably babysit; review, harden, test, and integrate that AI output ? now the remaining (or rehiring) engineers are more critical than ever, but focused on higher-leverage roles like orchestration, auditing, guardrailing agents, and fixing AI messes rather than line-by-line coding.

Evidence from 2025–2026 trends shows: Junior and entry-level hiring remains suppressed in many places. Senior/strong engineers are in demand for “AI steering,” reverse-engineering agent-generated chaos, enforcing governance, and reducing risk. Productivity gains exist; 20–40% on scoped tasks but only with disciplined human oversight—industrializing AI use like testing frameworks in the 2000s.

Warnings about “vibe coding hangover” and “development hell” from unchecked slop are common. In short: Vibe coding isn’t dead—it’s just graduating from party trick to something that needs adult supervision at scale. The reckless “ship AI slop fast” phase is ending because the bill (outages, debt, lawsuits) is arriving.

Companies are re-learning that AI amplifies engineers; it doesn’t eliminate the need for engineering judgment and responsibility. The next phase looks like: fewer total coders needed for volume, but higher bar for those who remain—aptitude, system thinking, and “when to override the AI” skill over pure syntax. The babysitters are coming back, often at premium rates.

Liability clauses are contractual provisions that allocate financial and legal responsibility when something goes wrong—such as a bug in AI-generated code causing an outage, data breach, IP infringement, or customer harm.

In the 2026 AI coding landscape, they have become central because AI tools produce code at scale, but humans (engineers) still own the consequences of approving or deploying it. These clauses appear in three main places: AI tool/vendor terms of service. Client or enterprise contracts. Internal employment policies or professional standards

They do not typically make individual engineers personally write a check for damages; companies almost always shield employees from direct financial hits. Instead, they enforce accountability through review requirements, caps, and risk-shifting—exactly why the “move fast and let AI break things” era is hitting a wall.