Edgen Crypto·Sep 26 2025, 18:05
[1] UK’s New Digital ID Scheme ‘Target for Hackers’ - Decrypt (https://decrypt.co/341631/uks-new-digital-id- ...)[2] UK's New Digital ID Scheme 'Target for Hackers' - Decrypt (https://vertexaisearch.cloud.google.com/groun ...)[3] Not just privacy, but financial security: How can a mixnet protect you and your crypto? (https://vertexaisearch.cloud.google.com/groun ...)
Related News
Nov 15 2025, 21:22
Alibaba Adopts JPMorgan's Blockchain for Tokenized Dollar and Euro Payments
## The Event in Detail **Alibaba**, the global e-commerce giant, is partnering with **JPMorgan Chase & Co.** (**JPM**) to deploy a novel blockchain-based system for business-to-business (B2B) payments. This collaboration will utilize **JPMorgan's JPMD** blockchain infrastructure to facilitate tokenized dollar and euro payments, signaling a significant move towards integrating distributed ledger technology into mainstream financial operations. The new service, branded **Agentic Pay**, is slated for a December launch, aiming to enhance the efficiency and speed of cross-border transactions for **Alibaba's** extensive merchant network. Notably, the system will employ bank-issued digital tokens, backed 1:1 by real bank deposits at **JPMorgan**, deliberately bypassing traditional stablecoins or other non-bank crypto tokens to adhere to existing regulatory frameworks, particularly in markets with strict digital asset regulations. ## Financial Mechanics and Technology At the core of this initiative is **JPMorgan's JPMD** technology, which underpins the creation of deposit tokens for **USD** and **EUR**. These tokens represent a digital form of fiat currency, offering the stability and regulatory backing inherent in traditional bank deposits while leveraging the speed and transparency of blockchain. The underlying technology for **Alibaba's** new digital payment system is **JPMorgan's Kinexys** (formerly **Onyx**), a platform that already processes approximately $2 billion in tokenized transactions daily. This infrastructure aims to streamline global B2B payments by eliminating intermediaries, thereby reducing operational costs for banks by up to 35% and drastically cutting transaction fees by 70% to 80% compared to legacy systems. Processing times are expected to shrink from typical 2-5 days to mere 3-10 seconds. The subscription service for **Agentic Pay** is anticipated to cost around US $20 per month or $99 annually, though final pricing is subject to confirmation. **Alibaba's Accio engine** will further integrate these payments with automated supplier search, logistics, and compliance functions. ## Business Strategy and Market Positioning **Alibaba's** strategic decision to partner with **JPMorgan** for tokenized payments reflects a calculated approach to modernize global trade while meticulously navigating the complex landscape of digital asset regulation. By opting for bank-backed digital tokens over private stablecoins, **Alibaba** explicitly addresses concerns around regulatory compliance, particularly in regions with stringent stablecoin bans such as China. This positions **Alibaba** as an innovator in digital payments without incurring the regulatory risks associated with decentralized cryptocurrencies. For **JPMorgan**, this partnership further solidifies its role in bridging traditional finance with cutting-edge blockchain applications, connecting its digital money platform to a vast global business ecosystem. The move aligns with a broader industry trend of asset tokenization, a market projected to reach $2.08 trillion in 2025 and $13.55 trillion by 2030, driven by the demand for more affordable and fractional ownership of high-value assets. Real-world asset (RWA) tokenization has already surpassed $50 billion in on-chain assets and is forecasted to hit $500 billion by the end of 2025. ## Broader Market Implications This collaboration between **Alibaba** and **JPMorgan** is a significant indicator of the accelerating integration of blockchain technology into traditional finance and global commerce. The cross-border payments market, currently valued in the trillions, is projected to reach $290 trillion by 2030, with blockchain solutions poised to capture a substantial share due to their efficiency gains. The move underscores the growing confidence in regulated digital assets, especially as frameworks like the European Union's Markets in Crypto-Assets Regulation (**MiCA**), fully applicable since December 2024, provide unified rules for crypto-asset services, drawing traditional financial institutions into the crypto sector. Stablecoin transaction volumes exceeded $32 trillion in 2024, with payment-specific volumes estimated at $5.7 trillion, illustrating the massive scale and potential of digital payment rails. Leading institutions like **Citi** project a multi-trillion-dollar market for stablecoins by 2030, underscoring the transformative impact of tokenized fiat on the global financial landscape. The **Alibaba-JPMorgan** partnership serves as a high-profile case study for other large corporations and financial entities contemplating similar blockchain adoption strategies.
Nov 15 2025, 19:20
Local Open-Source AI Models Drive Decentralization and Privacy in Web3
## Executive Summary The proliferation of accessible open-source artificial intelligence (AI) models is facilitating a significant shift towards local execution, enhancing user privacy and autonomy. This movement is powered by user-friendly tools that streamline the deployment of AI on personal hardware, marking a pivotal development in the broader Web3 and decentralized AI landscape. ## The Event in Detail Recent advancements have made running sophisticated language models locally on personal machines increasingly feasible, primarily through platforms such as **Ollama** and **LM Studio**. These tools simplify the process of downloading, configuring, and executing AI models, thereby circumventing the need for cloud-based services or extensive internet connectivity. A critical hardware requirement for local AI model performance is **Video RAM (VRAM)**. An entry-level setup with 4–6GB VRAM can support 3–4 billion parameter models, while 8–12GB VRAM is considered optimal for 7–14 billion parameter models like Llama 3 8B. High-end systems with 16–24GB+ VRAM cater to 13–30 billion parameter models, with enterprise-grade workstations featuring 48–80GB+ VRAM required for models exceeding 70 billion parameters or high-fidelity processing. Key advantages cited for local AI implementation include enhanced privacy, as user data and code remain on the local device, and the elimination of API usage fees associated with cloud-based AI services. Furthermore, frameworks such as the **Model Context Protocol (MCP)** are enabling local Large Language Models (LLMs) to interact seamlessly with external data sources and blockchain networks, transforming passive models into proactive, on-chain agents capable of automated trading and decentralized finance (DeFi) optimization. ## Market Implications The rising adoption of local open-source AI models has profound implications for market dynamics. It promotes greater user control over data and computational resources, aligning with the core tenets of decentralization in Web3. By reducing reliance on centralized cloud providers, local AI fosters a more resilient and distributed technological infrastructure. The ability to run models offline also democratizes access to advanced AI capabilities, potentially stimulating innovation across diverse sectors. This trend reinforces the value proposition of decentralized AI, where systems merge artificial intelligence with blockchain technology to create transparent, community-driven, and user-controlled applications. This paradigm empowers users to maintain full ownership of their data while securely contributing to AI development and training, thereby strengthening the principles of openness and user sovereignty integral to Web3. ## Broader Context Investment in the Web3 AI sector has experienced substantial growth, reflecting increasing market confidence in this convergence. Venture capital funding exceeded **$4.2 billion in Q1 2025**, primarily directed towards infrastructure projects supporting decentralized AI computation and data marketplaces. Market analysts project the Web3 AI sector to achieve a valuation of approximately **$78 billion by 2027**, representing a compound annual growth rate (CAGR) of 63% from 2024 levels. This growth underscores the increasing importance of AI models as digital assets, tradable and monetizable through non-fungible tokens (NFTs) and utility tokens, creating new economic incentives for AI development. Companies like **ChainGPT** exemplify this integration, offering AI tools specifically for blockchain development, including smart contract auditing and AI trading assistance. The development of AI Virtual Machines (AIVM) further enables decentralized AI model execution and GPU marketplace integration on blockchain infrastructure, solidifying the interplay between AI and Web3 technologies. The shift toward accessible local AI is a foundational element in realizing the broader vision of a decentralized, user-centric digital economy.
Nov 15 2025, 04:17
Retail Investors Face $17 Billion Loss in Digital Asset Treasury Firms
## Executive Summary A recent report by **10X Research** estimates that retail investors have collectively lost approximately **$17 billion** due to their exposure to Digital Asset Treasury Companies (**DATCOs**), signaling a significant downturn in market enthusiasm for firms leveraging cryptocurrency reserves. ## The Event in Detail **10X Research** details estimated losses totaling **$17 billion** for retail investors who sought indirect exposure to **Bitcoin** through investments in **DATCOs**. These firms typically issued shares at substantial premiums relative to their underlying **Bitcoin** holdings, using the capital raised to acquire more **BTC**. As cryptocurrency market sentiment cooled and **Bitcoin's** momentum waned, these equity premiums collapsed. Analysts further estimate that new shareholders collectively overpaid by approximately **$20 billion** for **Bitcoin** exposure via these equity premiums. Companies such as **MicroStrategy** and **Metaplanet** have experienced declines in their stock values commensurate with this market shift. Shares that once traded at three to four times the firm's actual **Bitcoin** holdings now typically trade at around 1.4 times, reflecting the deflation of previously inflated valuations. ## Market Implications Analysts at **Morningstar DBRS** caution that the increasing practice of companies holding **Bitcoin** and other cryptocurrencies in their treasuries could heighten credit risks. While corporate adoption of crypto continues, these strategies introduce meaningful implications for creditworthiness due to the inherent volatility of assets like **Bitcoin**, coupled with regulatory and custodial uncertainties. As of August 2025, approximately **3.68 million bitcoins**, valued around **$428 billion**, are held across corporations, ETFs, governments, and custodians, representing nearly 18% of the circulating supply. **MicroStrategy**, for instance, holds over **629,000 bitcoins**, accounting for roughly 64% of all public company **Bitcoin** treasury holdings. Adding to the risk profile, some **DATCOs** are reportedly turning to more obscure and speculative digital currencies to boost returns amidst **Bitcoin's** decline. Companies such as **Greenlane**, **OceanPal**, and **Tharimmune** have announced plans to store highly volatile tokens like **BERA**, **NEAR**, and **Canton Coin**, respectively. The strain on crypto-focused treasury companies is evident, with firms like **Evernorth**, the largest corporate holder of **XRP**, accumulating **388.7 million XRP tokens** now facing an unrealized loss of approximately **$79 million**. Similarly, **BitMine**, with a substantial **Ethereum** treasury of over **3.4 million ETH**, faces an estimated **$2.1 billion** unrealized deficit following **Ethereum's** recent 22% decline. These significant drawdowns underscore a recurring structural risk where companies building positions during market strength often face rapid capital erosion when sentiment reverses. ## Expert Commentary The **10X Research** report serves as a primary indicator of the **$17 billion** in retail investor losses, emphasizing the risks associated with **DATCO** equity premiums. **Morningstar DBRS** analysts explicitly warn about the heightened credit risks for companies incorporating cryptocurrencies into their treasury management, citing asset volatility and regulatory unknowns as key concerns. ## Broader Context Corporate engagement with cryptocurrencies continues to expand, evidenced by the **$86 billion** raised by global companies in 2025 specifically for cryptocurrency acquisitions. This trend aligns with the strategies of pioneering firms like **MicroStrategy**, which established a precedent for integrating **Bitcoin** into corporate balance sheets. However, the recent downturn highlights the inherent risks of such strategies, particularly when speculative premiums are involved. Regulatory developments also continue to shape the landscape; the US government established a framework in 2025 for a strategic **Bitcoin** reserve, and the **GENIUS Act**, signed on July 18, 2025, created a legal category for fiat-backed digital assets, defining issuance conditions and regulatory oversight by agencies including the **OCC** and **Federal Reserve**.