Headline digest: World Liberty launches $4B USD1 stablecoin on Canton for RWA settlement; BTC rallies on policy optimism and short squeeze; Kraken locks accounts over HTX sanction compliance; Aave V4 loans hit $213M ATH.
DeFi & Yields ·
World Liberty Financial deployed a $4 billion stablecoin called USD1 directly on the Canton Network, targeting institutional use cases in tokenized real-world asset settlement. The move reflects growing infrastructure for blockchain-based settlement of RWA transactions. Separately, Bitcoin's advance past $81,000 has been attributed to multiple factors: declining yields, a short squeeze, and shifting sentiment around U.S. regulatory direction.
Market positioning has shifted notably on the demand side. Bitcoin interest turned positive across both spot and perpetual futures markets for the first time following the October 2025 peak, and Aave V4 lending reached $213 million in active loans, a new record. Commentary on the asset class has broadened beyond pure tech: analyst Eric Balchunas observed that gold and Bitcoin ETFs re-entering the top 10 traded funds could indicate a "debasement trade" gaining ground over artificial intelligence enthusiasm.
Operational friction emerged as compliance concerns rippled through the sector. Kraken imposed temporary restrictions on customer accounts after nearly 12,000 small transfers originating from a wallet connected to sanctioned venue HTX triggered internal compliance protocols. U.S. fiscal metrics also drew attention, with total public debt reaching $40 trillion—equivalent to approximately 123% of annualized GDP. It remains unclear whether the HTX-linked transfers were intentional or how many accounts were ultimately affected.