Why TradFi Wants to Go Onchain

Can Ethena’s New Project Bring Institutional Finance Onchain?

A month ago, Converge was announced as the new chain backed by Ethena and Securitize, aiming to become a home for tokenized assets and institutional capital.

On Thursday, the teams behind it released the full technical specs. From validator-triggered circuit breakers to 100ms block times and support for yield-generating private credit, Converge is pitching itself as the chain for both TradFi and DeFi.

In this episode, Securitize’s Carlos Domingo and Ethena’s Guy Young join Unchained to explain what’s actually novel in this architecture, why they chose Arbitrum and Celestia, and what it will take for institutions to get comfortable onchain.

Plus: 

• What Converge means for Ethereum and other L2s

• Whether gas tokens like USDe and USDtb solve real UX problems

• How they plan to prevent bridge-based hacks

• And why this isn’t just about migrating existing assets, but “expanding the pie”

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

Base’s Head Jesse Pollak Responds to the Backlash Around the ‘Coin It’ Experiment

On Wednesday, Coinbase’s layer 2 network Base posted a tweet that read: “Base is for everyone,” followed by a tweet: “Coined it.” That second tweet linked to a page where the post had already been turned into a coin.

Within an hour, the coin hit a $17 million market cap, then dropped to under $2 million, then went back up to over $13 million. Crypto Twitter exploded. Some called it a rug. Others accused insiders of sniping the launch. Coinbase later issued a statement saying that Zora auto-tokenizes content, but Jesse Pollak, head of Base, tweeted that he personally greenlit the post.

So what really happened?

In this episode, Jesse sits down with Laura to discuss:

• Whether this was a memecoin launch or a media experiment

• Why he thinks the crypto community overreacted

• Whether insider trading occurred

• And why he believes coins, not NFTs, are the future of creator monetization

Plus, he explains why he’s okay being the “punching bag.” 

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

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

• 💥 OM token nosedives — what triggered the $5B wipeout?

• 🕵️ MOVE token drama deepens as founders go quiet.

• 🧾 CZ claps back at claims he flipped on Justin Sun.

• 🇺🇸 Can tariffs really fund America’s Bitcoin stash?

• ⏳ SEC stalls again: staking and redemptions on hold.

• 🕶️ Anchorage Digital under Homeland Security’s microscope.

• 💸 Two exploits, $12M gone

OM Token Crash Erases $5 Billion

The OM token, native to real-world asset blockchain Mantra, experienced a devastating collapse on Sunday, plummeting over 90% in value and wiping out more than $5.5 billion in market capitalization within an hour. The Mantra team attributed the freefall to “reckless forced liquidations” by a major investor on centralized exchanges, which they say triggered cascading sell-offs in a thin liquidity environment.

However, onchain analysts raised suspicions of coordinated activity. Spot On Chain reported that a wallet moved over 14 million OM tokens, worth approximately $91 million, to OKX just days before the crash. Adding to the controversy, pseudonymous researcher ZachXBT  suggested links between the incident and REEF Finance founder Denko Mancheski, alongside an individual using the alias Fukogo Ryoshu. According to ZachXBT, the pair sought large loans backed by OM holdings ahead of the price collapse. “Based on my findings, it was not Laser Digital or Shorooq,” he clarified, rejecting speculation about two VC firms previously rumored to be involved.

Facing mounting scrutiny and community backlash, Mantra CEO John Mullin took to social media on Tuesday, announcing plans to burn his entire share of team tokens. “When we turn it around, the community and investors can decide if I have earned it back,” he stated. Mantra confirmed that its team allocation of 300 million OM tokens—roughly 17% of total supply—is locked until April 2027. Mullin has yet to disclose how many of those tokens were specifically allocated to him.

Movement Labs Launches Probe Into MOVE Token Irregularities

Movement Labs and the Movement Network Foundation have launched internal and third-party investigations into “market maker abnormalities” surrounding the recent performance of the MOVE token. The inquiry follows Binance’s removal of an unnamed market maker, which allegedly sold 66 million MOVE tokens shortly after launch, generating an estimated $38 million USDT profit while placing minimal buy orders.

Movement Labs confirmed the ongoing probe in a statement to Blockworks, calling it a standard transparency measure. “It would be inappropriate to speculate on the outcome of the review or any actions that may or may not result,” a spokesperson said.

Meanwhile, co-founder Rushi Manche has taken what was described internally as a temporary leave of absence. As per Blockworks, sources noted his company Slack account was deactivated last Friday but appeared active again by Monday

CZ Denies DOJ Deal to Testify Against Justin Sun

Former Binance CEO Changpeng “CZ” Zhao has denied a Wall Street Journal report alleging he agreed to provide evidence against Tron founder Justin Sun as part of his 2023 plea deal with the U.S. Department of Justice. The report, citing unnamed sources, claimed this cooperation was an undisclosed element of Zhao’s settlement related to anti-money laundering violations.

Zhao responded on X, calling it a “baseless hit piece,” and emphasized that he served a four-month prison sentence, unlike typical government witnesses. “People who become gov witnesses don’t go to prison. They are protected,” he said.

Justin Sun also dismissed the rumors, writing, “CZ is both my mentor and a close friend… only by standing together can we change everything.”

The DOJ has not commented publicly on the matter. Zhao has previously suggested that lobbying efforts may be targeting him and Binance as part of a broader campaign within U.S. regulatory circles.

White House Eyes Tariffs to Boost Bitcoin Reserve, Says Advisor

Bo Hines, digital assets advisor to President Donald Trump, said this week that the administration is considering using tariff revenue to expand the U.S. Bitcoin Strategic Reserve. “We’re looking at many creative ways, whether it be from tariffs or something else,” Hines said during an interview with Anthony Pompliano.

The initiative follows Trump’s March executive order establishing the reserve and directing federal agencies to report their digital asset holdings. Hines emphasized that the strategy must be “budget-neutral” and not burden taxpayers.

The U.S. currently holds over 198,000 BTC, according to Arkham data. Hines also referenced legislation like Senator Cynthia Lummis’s BITCOIN Act, which could unlock additional funding by revaluing federal gold reserves to reflect market prices, and was reintroduced in March.

SEC Delays Key Decisions on Crypto ETF Staking and Redemptions

The U.S. Securities and Exchange Commission has postponed rulings on two significant crypto ETF proposals, extending its review into June. The regulator delayed a decision on Grayscale’s request to enable staking for its Ethereum Trust and Mini Trust products, moving the deadline to June 1. It also pushed back determinations on in-kind redemptions for ETFs from Bitwise, WisdomTree, and VanEck to June 3.

Staking would allow Grayscale to generate yield from Ethereum held in the trusts, while in-kind redemptions let investors exchange ETF shares directly for crypto assets rather than cash.

Though similar features are permitted in other markets like Canada and Hong Kong, the SEC has never approved staking in U.S. ETFs. The delay follows the confirmation of Paul Atkins as SEC chair and comes amid broader agency efforts to develop a long-term digital asset strategy. 

Homeland Security Task Force Reportedly Investigating Anchorage Digital

Anchorage Digital Bank is facing scrutiny from the U.S. Department of Homeland Security’s El Dorado Task Force, a unit dedicated to combating money laundering and financial crime, according to a report by Barron’s. The unit, which focuses on transnational money laundering, has reportedly contacted former Anchorage employees to inquire about company practices and policies. The nature and scope of the probe remain unspecified.

Anchorage is the only federally chartered crypto bank in the U.S. and has previously drawn regulatory attention. In 2022, the Office of the Comptroller of the Currency issued a consent order citing weaknesses in its anti-money laundering controls.

A spokesperson for Anchorage refuted the report, telling Cointelegraph, “The Barron’s piece on our company was based on speculation… [and] had no information about the nature of the inquiry.”

ZKsync and KiloEx Exploits Drain Over $12 Million

Two major crypto exploits this week have shaken decentralized platforms ZKsync and KiloEx, with combined losses exceeding $12 million.

On Monday, decentralized exchange KiloEx was hit by a $7.5 million attack, which blockchain security firms attributed to a price oracle vulnerability. The attacker reportedly manipulated ETH/USD price data, opening a position at $100 and closing it at $10,000, netting $3.12 million in one transaction. Cyvers noted the exploiter’s wallets were funded via Tornado Cash, while PeckShield highlighted weak access controls as a key failure point. KILO, the platform’s native token, dropped 30% following the breach.

A day later, Ethereum layer 2 protocol ZKsync confirmed that an admin wallet linked to its airdrop contract had been compromised. The attacker used a contract function to mint 111 million unclaimed ZK tokens, valued at roughly $5 million. ZKsync stated that no user funds were affected and that “necessary security measures are being taken.”

Watch the weekly recap on YouTube!