Bitcoin Scarcity Index on the Rise

According to market data, the Bitcoin Scarcity Index on Binance has risen to approximately 5.10. This value represents the highest level seen since October 2025.

The Scarcity Index is used as an indicator that measures the balance between Bitcoin supply readily available for trading on exchanges and demand pressure. A high index level shows that the amount of Bitcoin ready for sale in the market has decreased compared to historical averages.

This situation typically signals a change in investor behavior. Many investors prefer to withdraw their Bitcoin to cold wallets or hold it long-term instead of keeping it on exchanges. In such an environment, any sudden increase in demand can lead to faster price movements due to limited liquidity in the market.

Bitcoin Reserves on Exchanges Are Declining

Another data point supporting the supply tightening is the total amount of Bitcoin held on centralized exchanges. According to on-chain analyses, the total BTC amount on exchanges has fallen to approximately 2.7 million BTC. This figure stands out as one of the lowest levels seen since the end of 2020.

The decline in exchange reserves is considered an important signal indicating that investors are tending to hold their assets for longer periods.

Whale Wallets Reach Record Levels

Parallel to the supply tightening in the market, large investors’ Bitcoin accumulation is also increasing. According to current data, the number of wallets holding at least 100 BTC has reached 20,031, setting a new record. At current prices, a wallet holding 100 BTC is worth approximately $7.15 million.

In addition, approximately 954 thousand wallets hold between 1 and 100 BTC, while 57.6 million wallets have 1 BTC or less. This distribution reveals that Bitcoin ownership is concentrated among large investors while the small investor base remains quite broad.

Long-Term Investors Are Selling Less

Despite Bitcoin’s price having declined approximately 43% from its October peak, long-term investors appear to be acting more cautiously on the selling side than expected.

According to the data, long-term investors spent around 15.1 million BTC in the 2025 cycle. This figure is slightly below the 15.3 million BTC sold in the 2021 cycle. In previous market cycles, long-term investor spending was recorded at 7.3 million BTC and 13.6 million BTC respectively.

The structural changes in the market are also seen as an important factor influencing these figures. The increase in institutional investors, ETFs, and companies holding Bitcoin on their balance sheets is reshaping the definition of “long-term investor” over time.

Bitcoin Supply Dynamics Are Changing

While ETFs must hold a certain level of reserves to meet investor demand, some companies continue to view Bitcoin as a long-term strategic asset. This situation may contribute to a more balanced selling pressure in the market compared to previous cycles.

Rising scarcity signals, whale accumulation, and limited selling by long-term investors indicate that Bitcoin supply is tightening further. However, whether this will create a strong upward movement in price will depend on how demand evolves in the coming period. As of now, Bitcoin is trading at $71,526 amid the general market uptrend, gaining approximately 3% in the last 24 hours.

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The platform offers a wide range of products, including spot crypto trading, perpetual contracts, and selected on-chain markets. Up to 40x leverage, fast order execution, and Hyperliquid’s on-chain order book structure are among Dreamcash’s core technical advantages.

What Does Dreamcash Provide?

Dreamcash is a trading application operating on the Hyperliquid infrastructure, featuring a self-custodial structure and on-chain settlement. It combines spot and derivatives products, up to 40x leverage, markets linked to real-world assets, AI-powered insights, and multi-platform access.

Rather than focusing on eliminating institutional capital load, it adopts a model that targets providing speed, control, and transparency to individual users. Positioned with the claim of combining centralized exchange experience with DeFi principles, Dreamcash stands out as a mobile-first on-chain trading platform.

How to Use Dreamcash?

To join Dreamcash, it is sufficient to download the application and connect a crypto wallet. The registration process is simpler compared to traditional exchanges, as asset custody occurs in the user’s own wallet rather than on the platform.

After downloading the app and connecting their wallet, users can start trading in spot, perpetual, or HIP-3 markets.

Next-Generation Trading Experience on Hyperliquid with Dreamcash

Dreamcash is a front-end application that works directly integrated with the Hyperliquid network. Hyperliquid is a Layer-1 blockchain infrastructure with a fully on-chain order book, supporting 24/7 spot and derivatives trading.

Thanks to this structure:

• Spot crypto pairs can be bought and sold.
• Perpetual contracts can be traded with up to 40x leverage.
• Selected on-chain markets under HIP-3 become accessible.

Since the entire settlement process occurs on-chain, transparency and verifiability are prioritized. At the same time, the user experience is designed to be fast and fluid, similar to centralized exchanges.

Which Assets Are Traded on Dreamcash?

All spot crypto pairs and perpetual contracts listed on Hyperliquid can be traded through Dreamcash. In addition, selected on-chain markets under HIP-3 are also available on the platform.

Furthermore, the platform is not limited to crypto assets only. It also provides access to certain markets linked to real-world assets. For example, markets such as AAPL/USDT and AMZN/USDT are mentioned as tradable. This allows users to manage both crypto and traditional finance-linked assets through a single interface.

Multi-Platform Support

Dreamcash is not limited to a mobile application. Users can access their accounts through:

• iOS and Android mobile apps
• Web interface
• Desktop application

This multi-platform support enables seamless trading across devices.

Self-Custodial Structure and On-Chain Settlement

One of Dreamcash’s most important features is being self-custodial. That is, users do not entrust their funds to the platform; they trade by connecting their wallets. In this model, private key control remains entirely with the user.

Additionally, since all transactions are settled on-chain:

• Order book activities are verifiable
• Transactions can be transparently tracked
• Custody risk is minimized

This approach is fully aligned with the core principles of decentralized finance.

Leveraged Trading and Performance

Dreamcash offers up to 40x leverage on perpetual contracts. This feature allows opening larger positions with lower margin. However, leverage also increases the risk level.

The platform’s performance claim is based on Hyperliquid’s trading engine. Fast order transmission, deep liquidity, and reliable execution infrastructure target a low-latency trading experience.

AI-Powered Insights

Dreamcash optionally provides users with AI-supported market signals and idea suggestions. This system aims to help detect volatile tokens early. However, these tools serve as decision-support mechanisms; the final investment decision belongs to the user.

Easy On/Off-Ramping and Global Payment Methods

The platform aims to simplify fiat on/off-ramping processes. It is stated that cash deposits and withdrawals can be completed in seconds. Compatibility with global payment methods aims to facilitate fund transfers for users.

Reward System and Dreamdrop Mechanism

Activities on Dreamcash are rewarded. Trading volume and platform usage contribute to the Dreamdrop leaderboard. Additionally, users who invite new users through the referral system can earn points. This structure aims to incentivize community growth.

An Alternative Experience to Centralized Exchanges

With the motto “Better than CEX,” Dreamcash aims to offer an alternative model to centralized exchanges. The goal is to combine the speed and user interface quality of centralized exchanges with the transparency of decentralized infrastructure.

In this context, Dreamcash brings together:

• On-chain transparency
• User wallet control
• Institutional-grade trading engine performance

Dreamcash Investors

Dreamcash has received institutional support at a strategic level. The organization among the platform’s investors strengthens its position within the ecosystem.

Investor:

• Tether – Corporate investor (Corporation), Strategic stage (Strategic), Tier 2

Dreamcash Team

Behind Dreamcash are experienced individuals in blockchain and product development. The core team consists of the following names:

• Mark Borsten – Co-Founder
• ND-X – Builder

Official Links

• Website
• X (Twitter)

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Exchange Inflows Are Slowing

In early February, as Bitcoin slid toward the $60,000 level, deposits to centralized exchanges surged to approximately 60,000 BTC. Over the past seven days, however, the average has dropped to around 23,000 BTC.

This decline points to a moderation in the intense wave of selling seen earlier in the month. Lower exchange inflows typically translate into reduced immediate sell pressure, as fewer coins are positioned for liquidation. That said, inflows remain elevated compared to previous months, indicating that distribution has not fully subsided. The market may have exited the most aggressive phase of the sell-off, but conditions remain fragile.

Whale Activity Dominates the Flow

Although total inflows have decreased, the composition of those inflows has become more concentrated. The “Exchange Whale Ratio,” which measures the share of the top 10 deposits relative to total exchange inflows, has climbed to 0.64 — its highest level since 2015.

In practical terms, 64% of all Bitcoin sent to exchanges is coming from the largest transfer transactions. This suggests that major holders continue to offload positions. Throughout 2025, analysts have described the market as undergoing a “great redistribution,” with long-term holders transferring substantial amounts of BTC to new participants in multiple waves.

The data implies that while smaller flows are tapering off, whales remain active sellers, maintaining structural pressure on price.

Is Another Leg Down Ahead for Bitcoin?

On-chain indicators also hint that a near-term breakout may be unlikely. Some models place Bitcoin’s potential “ultimate bear market bottom” near $55,000. At the same time, declining USDT inflows to exchanges suggest that available sidelined capital — often referred to as “dry powder” — is diminishing.

Prediction market probabilities further reflect caution. Current pricing implies a 57% chance that Bitcoin falls to $55,000 before rebounding to $84,000.

Overall, while the sharpest phase of selling may have eased, persistent whale distribution suggests that caution remains warranted.

This content is for informational purposes only and does not constitute investment advice.

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Exchange Balances Drop to Six-Month Lows

On-chain data shows a steady decline in Ethereum reserves on crypto exchanges over the past six months. After peaking at 12.31 million ETH in July, exchange-held supply has fallen to approximately 8.15 million ETH. Crucially, this drawdown occurred during a period when ETH prices remained largely range-bound, indicating that coins are being withdrawn rather than sold.

Over the past seven days, Ethereum has traded within a relatively tight band between $2,801 and $3,034. In this sideways market environment, staking has emerged as an increasingly attractive option for holders seeking yield while waiting for a clearer market catalyst.

Staking Demand Pushes Validator Queue to Capacity

The growing appetite for staking is now visibly straining Ethereum’s validator onboarding process. Roughly 3.6 million ETH is currently queued for staking, with an estimated wait time of around 63 days for new validators to enter the network.

In contrast, the exit side of the queue remains comparatively light. Only about 44,448 ETH is waiting to be unstaked, with an estimated processing time of just 18 hours. This imbalance reflects Ethereum’s built-in limits on validator entries and exits per epoch, which are designed to preserve network stability.

Nearly One-Third of ETH Supply Is Now Staked

Total staked Ether has climbed above 36 million ETH, accounting for roughly 29% of the circulating supply. Just a few months ago, this figure stood closer to 35 million ETH. In a proof-of-stake system, increasing staking participation is often interpreted as a long-term confidence signal, as it requires assets to be locked rather than kept liquid for potential sale.

Institutional and Whale Activity Reinforces the Trend

Large holders appear to be reinforcing this dynamic. Treasury-focused firm BitMine recently staked an additional 250,912 ETH, bringing its total staked balance above 2.5 million ETH—around 61% of its overall holdings. Meanwhile, several major staking wallets have collectively withdrawn more than 26,000 ETH from Binance, pointing toward further accumulation.

Shrinking Liquidity Meets Falling Volume

While daily ETH trading volume has slipped from over $27 billion to roughly $23.54 billion, the ongoing reduction in exchange supply suggests a tightening liquidity environment.

Taken together, Ethereum’s price may look stagnant on the surface, but underlying on-chain indicators point to strengthening long-term conviction. If demand rebounds, this tightening supply dynamic could become a critical factor in Ethereum’s next major move.

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tradeXYZ aims to make a wide range of products—including not only crypto assets but also traditional financial instruments such as US stocks, indices, commodities, and forex pairs—available 24/7 on the Hyperliquid blockchain.

Core Vision of tradeXYZ

The tradeXYZ ecosystem views the restriction of global capital markets by specific hours, intermediaries, and geographic limitations as inefficient. The platform’s fundamental approach is to enable everyone to access liquid markets from anywhere, at any time.

This vision is built on three main pillars:

• Full control over user assets through a non-custodial structure
• Merging traditional and crypto markets into a single interface
• A decentralized, high-performance orderbook architecture

tradeXYZ represents a new generation trading infrastructure that combines decentralized finance with traditional market logic.

With 24/7 markets, a non-custodial structure, advanced orderbook architecture, and a wide range of products, tradeXYZ stands out as a key player within the Hyperliquid ecosystem.

Relationship Between Hyperliquid and tradeXYZ

All transactions on tradeXYZ occur on the Hyperliquid network. Hyperliquid is a high-capacity, fully on-chain, and decentralized perpetual trading network.

One of the most critical components of this network is the decentralized orderbook system called HyperCore. Order matching, liquidations, funding payments, and settlement processes are executed on-chain by validators.

tradeXYZ provides a user interface (frontend) that operates on top of this infrastructure. In other words:

• tradeXYZ is not an exchange
• It does not hold user funds
• It does not execute trades itself

Users access markets on Hyperliquid directly through the tradeXYZ interface.

What are HIP-3 and the XYZ Protocol?

Within the Hyperliquid ecosystem, there are network upgrades called Hyperliquid Improvement Proposals (HIP). Among them, HIP-3 enables independent developers to create their own perpetual markets on Hyperliquid.

At this point, the XYZ Protocol is a HIP-3 deployment.

The XYZ Protocol determines:

• Which assets will be listed
• Oracle sources
• Leverage limits
• Market parameters

tradeXYZ is the user interface that provides access to these XYZ markets.

Important note: tradeXYZ is not the only way to access XYZ markets. However, it offers one of the most comprehensive and integrated user experiences.

Markets Available on tradeXYZ

tradeXYZ brings together three main types of markets on a single platform.

1. Crypto Perpetual Markets

These are Hyperliquid’s native perpetual markets. On major crypto assets such as BTC, ETH, and others:

• Perpetual contracts with no expiry
• USDC collateralized
• Funding mechanism-based

Users can choose between isolated or cross margin and manually adjust leverage levels.

2. XYZ Equity Perpetuals (Stock and Index Perps)

One of the most striking features of tradeXYZ is the conversion of traditional stocks and indices into perpetual contracts.

Notable example:

• XYZ100: An index perp representing 100 major US companies, similar to Nasdaq-100

These contracts:

• Are collateralized with USDC
• Use USD-based oracle prices
• Are cash-settled

Even when traditional markets are closed, they continue to trade thanks to internal pricing mechanisms.

3. Spot Crypto Markets

Thanks to Unit Protocol integration, tradeXYZ also supports spot crypto trading.

• Native assets such as BTC, ETH, SOL
• Tokenized on their own blockchains
• Traded as spot on Hyperliquid

These assets cannot be used as collateral but offer low-fee spot buying and selling.

24/7 Oracle and Pricing Mechanism

Especially for stock and commodity perps, the biggest challenge is determining the price outside of market hours. tradeXYZ and the XYZ Protocol adopt a hybrid approach here:

• When markets are open: Institutional liquidity providers and oracle networks (e.g., Pyth)
• When markets are closed: Continuous time-weighted EMA-based internal pricing

The mark price is calculated by taking the median of oracle price, perp mid-price difference, and components derived from recent trades. This structure is restricted with specific bands to limit sudden price jumps.

Account Structure and Fund Management

On tradeXYZ, a single wallet address can have multiple account types:

• Crypto Perps Account
• Equities [XYZ] Account
• Spot Account

Instant and free transfers can be made between these accounts. However, collaterals are independent; equity perps and crypto perps do not share the same margin.

How to Use tradeXYZ?

tradeXYZ Wallet Connection

The platform operates completely non-custodially. Users can:

• Connect existing wallets such as MetaMask, Phantom, Rabby
• Or create a new wallet via email through Privy

You can also click here to read our guide titled “What is MetaMask? How to Use It?”.

After connecting the wallet:

• Deposit USDC or supported spot assets
• Enable trading
• Transfer to the relevant accounts

tradeXYZ may be restricted in certain jurisdictions (including the US) due to regulations, and wallets may undergo sanctions screening.

Depositing Spot Crypto Assets

tradeXYZ allows users to deposit spot crypto assets via the Unit Protocol infrastructure. Deposits are made through the native blockchain of the relevant asset.

The process can be summarized as follows:

• User selects the asset from the “Deposit” tab

• The system generates an asset-specific deposit address
• Transfer is made from an external wallet using the correct network

• After blockchain confirmations, the asset appears in the Spot Account

Using the wrong network or missing memo can result in loss of funds. Spot assets cannot be used as collateral in perpetual trading.

Transfers Between Accounts

Transfers between accounts are free and require only a signature.

For example, USDC received in the Spot Account can be transferred to the Crypto Perps or Equities account in seconds.

Withdrawal Operations

USDC (Arbitrum) Withdrawals

USDC withdrawals are processed via the Arbitrum network.

There is no gas fee, but a minimum protocol fee of 1 USDC applies. Therefore, at least 1 USDC must be present in the Crypto Perps account for withdrawal.

Spot Crypto Asset Withdrawals

Assets such as BTC, ETH, and similar are withdrawn via their native networks. Failure to provide the correct address, correct network, and minimum amount can result in loss of funds.

Order Types and Professional Tools

tradeXYZ offers advanced order types beyond simple buy-sell operations:

• Market & Limit
• Stop Market / Stop Limit
• TWAP
• Scale Orders
• Reduce-only
• TP / SL integration

This structure provides a comprehensive toolkit especially for professional traders and users taking hedge positions.

Official Links

• Website
• X (Twitter)
• Whitepaper

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When is Backpack TGE Coming Out?

While no exact launch date has been confirmed, recent activity on Backpack’s official X account has reinforced expectations that the token launch is firmly on the roadmap. Subtle messaging and increased ecosystem momentum suggest that incentive mechanisms may soon become more visible as the project enters its final pre-TGE phase.

Why Airdrop Expectations Are Increasing

The possibility of an airdrop has gained traction following recent comments from the Backpack team highlighting upcoming product releases and reward-driven structures designed to boost user engagement. Although no formal announcement has been made, these signals indicate that a token distribution—either before or shortly after the TGE—remains a realistic scenario.

Community discussions suggest that if an airdrop does occur, allocation criteria may focus on measurable, on-chain activity rather than passive participation. Commonly cited factors include consistent and organic trading volume on Backpack Exchange, active involvement in point-based or volume-driven incentive systems, and ownership of NFTs linked to the Backpack ecosystem. These metrics align with distribution models used by other major crypto projects in recent years.

Click here to register for the Backpack exchange at a discounted rate.

Token Valuation and FDV Considerations

As the TGE approaches, one of the most debated topics among users and early supporters is the token’s initial valuation. Metrics such as Fully Diluted Valuation (FDV) and the effective cost per user point are seen as critical indicators of whether early participation will be rewarded proportionally.

Long-term users who have consistently interacted with the platform since its early stages are widely viewed as being better positioned, particularly if valuation parameters favor sustained, organic activity over short-term usage spikes.

What Backpack Is Building

Backpack positions itself as a comprehensive crypto platform built on a multi-chain, self-custodial wallet infrastructure. Users retain full control over their assets while accessing a unified environment that includes spot trading, perpetual futures, and lending products.

The platform is available via a desktop browser extension as well as native iOS and Android applications. With support for major networks such as Solana, Ethereum, Arbitrum, and Optimism, Backpack aims to serve as a central hub for users operating across multiple blockchains as the ecosystem continues to mature.

What is BackPack? Airdrop Hunting in the BackPack Ecosystem!

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A declining exchange balance historically reduces immediate selling pressure and often sets the foundation for stronger price movements when demand increases.

Over 400,000 BTC Withdrawn From Exchanges in One Year

Since December 2024, more than 403,000 Bitcoin have been withdrawn from centralized exchanges. This amount represents roughly 2% of Bitcoin’s total circulating supply. A significant share of these coins has moved into personal cold wallets and long-term storage addresses.

Such behavior typically reflects investor confidence and a reduced appetite for short-term selling. At the same time, Bitcoin has been trading near the $90,000 level, making the continued outflow even more notable. Historically, periods where exchange balances fall during high price levels often coincide with reduced downside risk.

Institutional Accumulation Is Gaining Momentum

Not all Bitcoin leaving exchanges is heading into private wallets. A substantial portion is being absorbed by institutional players, particularly exchange-traded funds and publicly listed companies. These entities have steadily increased their Bitcoin holdings over recent months.

Current figures show that ETFs now control more than 1.5 million BTC, while public companies hold over 1 million BTC. Together, these institutional wallets now contain more Bitcoin than all exchanges combined. This marks a structural shift in the market, where long-term capital is becoming more influential than short-term speculative trading.

What a Tightening Supply Means for Price Dynamics

As of late November, the total Bitcoin balance held on exchanges stands near 2.11 million BTC. When compared with institutional holdings, roughly 11% of the total Bitcoin supply is now locked within ETFs and corporate treasuries.

This tightening of liquid supply has major implications for future price behavior. With fewer coins readily available for trading, any surge in demand could trigger faster and sharper upward price movements. The ongoing reduction in exchange reserves suggests that supply-side pressure is building quietly in the background.

If demand continues to grow while accessible supply remains constrained, Bitcoin’s long-term price dynamics could become increasingly sensitive to new inflows of capital.

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A Strategic Move Toward U.S. Markets

In an official statement, Animoca confirmed that it has signed a term sheet with Currenc Group to pursue a Nasdaq listing through a reverse merger structure. Yat Siu, Co-Founder and Executive Chairman of Animoca Brands, described the proposed deal as “a compelling opportunity” that could bring the company closer to global investors.

Pending shareholder and regulatory approvals, the transaction is expected to be completed by 2026. Industry analysts view the merger as a strategic move to expand Animoca’s investor base and enhance its exposure to U.S. capital markets.

Currenc Group to Streamline Operations

Ahead of the merger, Currenc Group announced plans to restructure its business by divesting certain divisions. Its AI-driven financial solutions and digital remittance platform will reportedly be spun off to existing shareholders prior to closing the deal.

The restructuring news, coupled with merger anticipation, has sent Currenc’s stock soaring — shares have surged 118% over the past five days and are expected to open around $3.78 in New York trading.

Shift in Animoca’s Revenue Model

In 2024, Animoca reported $165 million in total revenue, driven largely by its Digital Asset Advisory division, which posted an impressive 116% year-over-year growth. Meanwhile, revenue from its Web3 gaming and NFT segments declined 40% to $110 million, signaling a shift in the company’s business focus.

This evolution underscores Animoca’s transition from being primarily a blockchain gaming studio to a more diversified player in digital asset management and investment advisory.

Expanding Presence with a New York Office

As part of its U.S. market strategy, Animoca Brands also plans to open a new office in New York. The move will strengthen the company’s North American footprint and foster closer relationships with institutional investors.

Animoca’s upcoming Nasdaq debut not only marks a major milestone for the company but also reflects the growing institutional acceptance of Web3 enterprises within traditional financial markets.

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What is Arc?

Arc is a purpose-built, EVM-compatible Layer 1 blockchain designed for stablecoin finance. It uses USDC as its native gas token, offering deterministic sub-second settlement finality, opt-in privacy, and a stable transaction fee architecture. It is optimized for stablecoin-focused use cases such as global payments, FX, and capital markets.

Malachite, a high-performance consensus engine developed by Informal Systems, provides Arc with a fast, secure, and reliable infrastructure. As an open and composable network, Arc seamlessly interoperates with other blockchain ecosystems.

Integration with the Circle platform supports stablecoins like USDC and EURC, as well as the tokenized money market fund USYC. Arc serves as a launchpad for the next phase of financial innovation, offering a reliable infrastructure for both individual users and enterprises.

Purpose of Arc

The global financial system, while foundational to modern commerce, relies on legacy infrastructure that is incompatible with the speed, openness, and programmability of the internet. Cross-border payments are slow, opaque, and expensive; treasury operations are fragmented across jurisdictions and intermediaries; and capital markets are constrained by manual processes and intermediary layers. While blockchain technology promises programmability and transparency, existing public blockchains hinder enterprise adoption due to limitations such as volatile gas tokens, uncertain settlement finality, and lack of privacy. Arc is purpose-built for stablecoin finance to address these gaps. It offers stable fees with USDC, deterministic finality, and opt-in privacy, combining the requirements of traditional finance with the efficiency of blockchain. Arc enhances financial access and capital mobility, particularly in emerging markets, and provides a reliable settlement layer for stablecoin-based applications.

How Does Arc Work?

Arc is a Layer 1 blockchain optimized for stablecoin finance. Its technical infrastructure consists of the following components:

• Malachite Consensus Engine: A Tendermint-based high-performance Byzantine Fault Tolerance (BFT) protocol, offering sub-second (<350ms) deterministic finality and up to 3,000 TPS transaction capacity. With 4 validators, it can achieve 10,000+ TPS and <100ms finality. In the future, multi-proposer support could increase throughput by 10x.

• USDC Native Gas: Gas fees are dollar-denominated in USDC, providing predictable, volatility-free costs. Other local stablecoins and tokenized money can be used as gas via paymaster integration.

• EVM Compatibility: Compatible with Ethereum tools (MetaMask, ethers.js), offering developers a familiar environment.

• Opt-in Privacy: Confidential transfers encrypt transaction amounts while keeping addresses visible. Trusted Execution Environments (TEEs) provide fast, auditable privacy; future integration of MPC and FHE is planned.

• FX Engine: An enterprise-grade RFQ (Request for Quote) system offering 24/7 PvP settlement and price discovery.

• Circle Integration: Mint, CCTP, and Gateway enable fast fiat-to-stablecoin conversion and cross-chain liquidity.

Transaction Flow:

• USDC Transfer: User initiates a low, fixed-fee transfer with USDC → Malachite finalizes in <1 second → Transaction is irreversible.

• Confidential Transfer: User initiates a TEE-based confidential transfer → Amount is encrypted, addresses remain visible → Auditors access via view key.

• FX Transaction: Price is obtained via RFQ → Smart contract executes PvP settlement.

Future Plans:

• Privacy Enhancements: Transition from confidential transfers to private state and confidential computation.

• MEV Mitigation: Encrypted mempool, batch transaction processing, and multi-proposers to prevent harmful MEV.

• PoS Transition: Permissioned PoS for broader validator participation and governance flexibility.

• Performance Optimization: Two-phase Tendermint variant to reduce latency by 30%.

Arc Use Cases

Arc is used in the following areas:

• Global Payments: Low-cost, fast cross-border payments with USDC.

• Foreign Exchange (FX) Transactions: 24/7 PvP settlement and RFQ-based price discovery.

• Capital Markets: Settlement layer for tokenized equities, bonds, private credit, and funds.

• Treasury Management: Low-risk yield with USYC, automated treasury agents.

• Financial Inclusion: Stablecoin-based financial access in emerging markets.

• DeFi: Secure, compliant DeFi protocols with USDC and USYC.

Usage Steps:

1. Connect to Arc via Circle platform or EVM-compatible wallet (e.g., MetaMask).

2. Mint USDC/EURC from fiat or bridge via CCTP.

3. Perform payments, FX transactions, or DeFi interactions with USDC.

4. Earn yield with USYC or transact with tokenized assets.

5. Protect sensitive transactions with confidential transfers.

Advantages of Arc

• Stable Fees: Dollar-denominated, predictable gas fees with USDC.

• Fast Finality: Malachite with <350ms deterministic settlement.

• Privacy: TEE-based confidential transfers, regulatory compliance.

• EVM Compatibility: Easy development with Ethereum tools.

• FX Engine: 24/7 PvP settlement and price discovery.

• Circle Integration: Mint, CCTP, Gateway for liquidity and access.

• High Performance: 3,000 TPS, with 10,000+ TPS in the future.

Arc Tokenomics

Arc uses USDC, EURC, and USYC instead of a native token:

• USDC: Native gas token, dollar-denominated for stable fees.

• EURC: Euro-based stablecoin for global payments.

• USYC: Tokenized yield asset backed by U.S. Treasury securities.

• Distribution: Circle’s Mint and CCTP for fiat-to-stablecoin conversion.

• Economy: Stable fee market inspired by EIP-1559 with fee smoothing. Fees go to the Arc Treasury.

Arc Investors

Arc is supported by Circle; additional investor information is not specified.

Technical Infrastructure of Arc

• Malachite: Tendermint-based BFT, <350ms finality, 3,000 TPS.

• USDC Gas: Dollar-denominated, predictable fees.

• EVM: Compatible with Ethereum tools for development.

• Privacy: TEE-based confidential transfers, with MPC/FHE planned.

• FX Engine: RFQ and PvP settlement.

• Circle Integration: Mint, CCTP, Gateway for liquidity.

Arc Roadmap

Arc’s public testnet is expected in Fall 2025. The mainnet beta launch will include a stable gas fee architecture, sub-second deterministic finality, and the FX engine roadmap. Circle products (CPN, USDC, EURC, USYC, Mint, Wallets, Contracts, CCTP, Gateway, Paymaster) and third-party ecosystem support will be available. Privacy enhancements will evolve from confidential transfers to programmable privacy. MEV mitigation will include encrypted mempool and multi-proposers. A permissioned PoS transition will increase validator diversity.

Arc Team

• Adi Seredinschi: Principal Product Manager.

• Adrian Soghoian: Principal Software Engineer.

• Sanket Jain: Lead Product Manager.

• Rachel Mayer: VP of Product.

• Gordon Y. Liao: Research Director.

• Sterling B: BD Ecosystem Director.

Official Links

• Website
• X (Twitter)
• Whitepaper

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A New Era of On-Chain Fundraising

Echo allows crypto projects to raise funds without relying on traditional financial intermediaries. By facilitating token issuance and blockchain-based capital formation, the platform provides a faster, more transparent, and efficient fundraising process. Coinbase’s acquisition aims to accelerate the integration of decentralized finance (DeFi) models into mainstream capital markets.

According to company executives, Echo’s infrastructure will be incorporated into Coinbase’s existing services, creating a more seamless experience for investors and projects alike. This integration is expected to offer faster, safer, and more accessible fundraising and investment tools across the ecosystem.

Growth Driven by a Pro-Crypto Policy Environment

The acquisition comes amid a wave of optimism for U.S. crypto markets under President Trump’s pro-crypto administration. Regulatory clarity has allowed Coinbase — the country’s largest crypto exchange — to pursue a more aggressive growth strategy, solidifying its dominance both domestically and abroad.

The company’s eight acquisitions this year alone highlight its ambition to evolve beyond a trading platform. Coinbase is steadily building a comprehensive crypto ecosystem, offering services that span from custody and infrastructure to fundraising and institutional investment solutions.

Strengthening Coinbase’s Strategic Position

The purchase of Echo strengthens Coinbase’s role as a central player in the blockchain capital markets space. The move is seen as a strategic effort to expand services for institutional clients and startups seeking compliant, on-chain fundraising options.

By continuously investing in blockchain-native financial infrastructure, Coinbase is positioning itself not only as a crypto exchange but also as a key architect of the next-generation digital finance landscape — bridging traditional capital markets with decentralized technologies.

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