Weekly Recap: Coinbase Goes All In, JPMorgan Brings Funds Onchain

DAT Stocks Are on Sale. Are They a Buy? Plus, Why Crypto Is Dead

Markets are reassessing crypto’s value at the same moment builders are rethinking who crypto is for.

In this combined episode of Unchained, Steven Ehrlich first breaks down why crypto treasury stocks (DATs) have swung from massive premiums to deep discounts, why comparisons to GBTC can be misleading, and why buying these stocks isn’t a clean arbitrage trade but a long-term, high-conviction bet.

You can read Steve’s full report here and you can subscribe for 95% OFF before the end of year! 😱

Then, Figment Capital’s Dougie DeLuca zooms out to the broader shift underway. As fintechs and institutions embrace blockchain infrastructure, he argues that “crypto as we know it” may be fading—and that crypto natives risk being left behind unless they adapt to real users, sustainable products, and mainstream distribution.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

We’ll continue with the weekly recap of news next, but first…

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Now, let’s get into this week’s news! In today’s edition:

• 🚀 Coinbase goes beyond crypto with stocks and prediction markets

• ⚖️ Terraform liquidator sues Jump Trading for $4B over alleged Terra profiteering

• 🏦 JPMorgan puts a $100 million money market fund on Ethereum

• 🏛️ Federal Reserve rolls back crypto limits for state member banks

• 🔗 DTCC taps Canton Network to tokenize U.S. Treasury securities

• ⚔️ Aave fee dispute explodes into a DAO “poison pill” showdown

• 🔥 Hyperliquid moves to formalize a $1 billion HYPE token burn

• 🧩 Circle buys Axelar’s builders while leaving the token behind

• 💳 SoFi launches a bank issued stablecoin on a public blockchain

Coinbase Expands Beyond Crypto With Stocks and Prediction Markets

Coinbase announced plans to launch prediction markets and equities trading for eligible users in the United States, marking a significant expansion beyond its core crypto offerings. The company said the new services will roll out in the coming weeks, allowing customers to trade stocks using the USDC stablecoin and participate in prediction markets through a partnership with Kalshi.

“Coinbase is now the best place to trade every asset, not just crypto,” CEO Brian Armstrong said during a company product showcase, describing the move as part of a broader push to build an “everything app.”

Prediction markets, which allow users to trade on the outcomes of events such as elections and sports, have gained momentum over the past year, with rivals like Robinhood and Gemini also entering the space.

Coinbase also unveiled new institutional products, including tools for launching branded stablecoins and a service called Coinbase Tokenize, designed to help institutions tokenize assets like company shares. In a blog post, the company said tokenized stocks could eventually enable 24/7 global trading and instant onchain settlement.

Terraform Liquidator Seeks $4 Billion From Jump Trading

The court-appointed administrator overseeing Terraform Labs’ liquidation has filed a lawsuit seeking $4 billion in damages from Jump Trading and senior executives, alleging the firm secretly profited from the TerraUSD ecosystem before its collapse. 

According to court filings, administrator Todd Snyder claims Jump entered into undisclosed agreements with Terraform Labs to support TerraUSD’s dollar peg, while receiving early access to large amounts of Luna tokens that were later sold for substantial gains.

Terraform collapsed in 2022 after TerraUSD depegged, wiping out more than $40 billion in market value and triggering widespread crypto bankruptcies. Snyder alleged Jump “actively exploited” the ecosystem through concealed arrangements that misled investors about how the stablecoin functioned. “This action is a necessary step to hold Jump Trading accountable,” Snyder said.

Jump has denied wrongdoing, calling the lawsuit a “desperate attempt” to shift blame. Roughly $300 million has been recovered so far for creditors.

JPMorgan Debuts Tokenized Money Market Fund on Ethereum

JPMorgan Chase has launched its first tokenized money market fund, placing a traditional investment product directly on the Ethereum blockchain. 

The fund, called My OnChain Net Yield Fund, or MONY, was seeded with $100 million of the bank’s own capital and invests exclusively in U.S. Treasuries and fully collateralized Treasury repurchase agreements.

The fund is available to qualified investors with a $1 million minimum investment and can be accessed through JPMorgan’s Morgan Money platform. Investors receive digital tokens representing their ownership, with transactions recorded on Ethereum. Subscriptions and redemptions can be made using cash or the USDC stablecoin.

The launch comes as tokenized real world assets surpassed $30 billion this year, with Ethereum hosting the majority of activity.

Federal Reserve Reverses Crypto Limits for State Member Banks

The Federal Reserve has withdrawn a 2023 policy that placed strict limits on crypto related activities by state member banks, replacing it with a more flexible framework that reflects what it called an “evolving understanding” of digital asset risks. 

The earlier guidance created a strong presumption against state supervised banks engaging in activities not clearly permitted for national banks, including holding assets like bitcoin or issuing stablecoins.

Under the updated 2025 policy, insured state member banks remain bound by existing limits under federal law, while uninsured banks may now seek approval from the Fed to pursue novel activities on a case by case basis.

The 2023 policy had been cited in the Fed’s decision to deny Custodia Bank, a Wyoming chartered digital asset bank, access to a Fed Master Account.

DTCC Selects Canton Network to Tokenize U.S. Treasury Securities

The Depository Trust and Clearing Corporation has chosen the Canton Network as its blockchain partner to tokenize a subset of U.S. Treasury securities custodied at its Depository Trust Company. 

The move follows the DTCC’s recent receipt of a no action letter from the Securities and Exchange Commission, allowing it to implement a service for tokenizing real world assets held within its infrastructure.

The initiative will be developed with Digital Asset, the firm behind the privacy focused Canton Network, and is expected to reach a minimum viable product in a controlled production environment during the first half of 2026. 

DTCC CEO Frank LaSalla said: “This partnership is a strategic step forward as we collaborate across the industry to build a digital infrastructure that bridges traditional and digital finance.”

DTCC will also join the Canton Foundation as co-chair alongside Euroclear, taking an active role in the network’s governance and standards setting.

Aave Fee Dispute Escalates Into “Poison Pill” Governance Fight

Aave governance delegates are questioning whether swap fees generated through the protocol’s new CoW Swap integration are being redirected away from the DAO treasury.

Members flagged that fees from swaps routed through Aave’s official interface appear to be sent to an address controlled by Aave Labs, rather than the DAO, unlike the previous Paraswap arrangement. 

Estimates shared in governance forums suggest the change could amount to roughly $10 million per year in foregone DAO revenue. Aave Chain Initiative founder Marc Zeller said the shift represents a significant portion of DAO income and raised concerns about alignment with tokenholders.

Days later, the dispute escalated after a large AAVE holder introduced a so-called “poison pill” proposal. The measure calls on the DAO to authorize legal action to seize Aave Labs’ intellectual property, trademarks, and equity, effectively bringing the company under full DAO control. 

Aave founder Stani Kulechov responded that Aave Labs is entitled to monetize its front end, while acknowledging the DAO should have been consulted.

Hyper Foundation Moves to Formalize $1 Billion HYPE Token Burn

The Hyper Foundation has proposed a governance vote that would formally recognize HYPE tokens held in Hyperliquid’s Assistance Fund as permanently burned, potentially removing nearly $1 billion worth of tokens from circulation. The proposal asks validators to treat the tokens as excluded from both the circulating and total supply, despite no onchain burn transaction taking place.

The Assistance Fund is a built-in protocol mechanism that automatically converts a portion of Hyperliquid’s trading fees into HYPE tokens. Those tokens are sent to a system address without a private key, making them inaccessible unless a future hard fork were approved. Around 37 million HYPE tokens currently sit in the fund, representing more than 13% of the circulating supply.

“No onchain action is required, as the tokens are already in a system address with no private key,” the foundation wrote, adding that a “yes” vote would create binding social consensus to never unlock them.

Validator voting remains open until December 21, with early signals showing broad support.

Circle Acquires Axelar Developers, Token Left Out of Deal

Circle has agreed to acquire the team and proprietary intellectual property of Interop Labs, the original core developer behind the Axelar interoperability network, while explicitly excluding the Axelar Network, its foundation, and the AXL token from the transaction. The stablecoin issuer said the move will strengthen its cross chain infrastructure, supporting products like Cross Chain Transfer Protocol and Arc.

Markets reacted quickly to the announcement. AXL fell about 13% after traders digested that the acquisition provides no direct benefit to token holders. Axelar and the AXL token will continue operating independently under community governance, with longtime contributor Common Prefix expected to take on a larger development role.

SoFi Launches Bank Issued Stablecoin on Public Blockchain

SoFi Technologies announced the launch of SoFiUSD, a fully reserved U.S. dollar stablecoin issued by SoFi Bank, making it the first nationally chartered bank to issue a stablecoin on a public, permissionless blockchain. The token is initially deployed on Ethereum and is designed to support 24/7, near instant settlement for banks, fintechs, and enterprise partners.

SoFi said SoFiUSD is backed one to one by cash reserves held for immediate redemption, with funds maintained at the bank’s Federal Reserve account. As an OCC regulated and FDIC insured institution, SoFi Bank said the structure reduces liquidity and credit risk while enabling low cost settlement.

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