‍US Bankers Warn of Stablecoin Loophole Threatening $6.6 Trillion in Deposits The American Bankers Association (ABA) Community Bankers Council is lobbying U.S. senators to close regulatory gaps in the GENIUS Act. They warn that crypto companies are circumventing prohibitions on stablecoin interest payments through affiliated exchanges and partners, potentially causing a significant outflow of capital from traditional banks. Bankers are concerned about preserving the fractional reserve system, which relies on deposits to fund local lending. The ABA argues that loopholes allow "yield-based workarounds" to the interest ban, potentially jeopardizing $6.6 trillion in deposits according to a U.S. Treasury report. The Council demands the interest prohibition extend to all affiliates of stablecoin issuers. While some regulators and crypto industry figures believe these fears are overstated, the debate highlights friction between DeFi and traditional banking. Future regulations may focus on reserve requirements and activity-based licensing for stablecoin issuers to ensure economic stability.
‍Bybit Spot Review 2025: High-Yield Listings Drive Growth Bybit, the second-largest crypto exchange by volume, reported strong performance for its Spot trading division in 2025. The exchange strategically focused on early-stage assets in sectors like Real World Assets (RWA), GameFi, and memecoins, providing its 80 million users with early access. Notable listings included the memecoin TRUMP (ATH +548%), gold-backed XAUT (ATH +127%), and xStocks for equity derivatives. Other high performers were TUNA (+2,637% on day one) and MET (+255% in 24 hours). Bybit also allocated $20 million in rewards to boost user engagement, particularly in GameFi. The exchange positions itself as a hub for Web3 innovation.
‍Barclays Invests in Ubyx to Boost Global Tokenized Money Infrastructure On January 7, 2026, Barclays announced a strategic investment in Ubyx Inc., a US-based clearing system for digital money. The partnership aims to enhance the interoperability of tokenized deposits and regulated stablecoins globally. This investment underscores the critical role of interoperability in enabling traditional financial institutions to seamlessly integrate with blockchain-based assets, addressing a key challenge for digital asset adoption in regulated banking.
‍Cango Inc. Secures $10.5M Investment, Bolsters Bitcoin Reserves to 7,528 BTC Cango Inc. has announced a significant strengthening of its balance sheet with Bitcoin reserves reaching 7,528.3 BTC. The company also revealed a US$10.5 million funding commitment to enhance mining efficiency and accelerate its expansion into energy and AI compute platforms. CEO Paul Yu stated the investment will drive greater Bitcoin mining efficiency and parallel development of their energy and AI compute platform in 2026. Cango maintains a long-term holding strategy for its BTC assets and operates mining sites across more than 40 global locations.
‍China's MIIT Unveils 2028 Plan to Sync AI and Industrial Internet China's Ministry of Industry and Information Technology (MIIT) has introduced a plan to merge AI with the industrial internet by 2028. The initiative aims to develop low-latency, high-performance communication networks to support AI-driven industrial operations. The MIIT targets upgrading over 50,000 enterprises by 2028, focusing on developing quality datasets for 20 key industries, enhancing data infrastructure, and cultivating specialized solution providers. This strategy seeks to streamline supply chains and boost operational efficiency through smart manufacturing and automated logistics.
‍Tradomatix Launches Unified AI and Quant Trading Platform Tradomatix has officially launched its global trading technology platform, designed to integrate hedge funds, quantitative traders, and AI trading agents into a single, asset-agnostic ecosystem. Headquartered in Singapore, the company aims to streamline cross-market operations amidst the increasing shift towards automated execution and data-centric strategies. Gary Tan, Director at Tradomatix, stated, “Trading infrastructure has remained fragmented for too long. We built Tradomatix to eliminate silos and enable hedge funds, quant traders, and AI systems to operate within one unified ecosystem.” The platform offers a non-custodial environment supporting institutional-grade operations and professional traders, with capabilities tailored for high-speed quantitative strategies and machine learning models. It is now available to qualified entities globally.
‍Ethereum Enhances Layer 2 Efficiency with Data Capacity Boost Ethereum has implemented the Blob Parameter Only (BPO) fork, increasing data capacity for Layer 2 rollups like Base, Optimism, and Arbitrum. This adjustment raises the blob target from 10 to 14 and the limit from 15 to 21, enabling the network to support growing transaction volumes parametrically rather than procedurally. This update is expected to lead to lower marginal blob prices and more stable transaction fees, aligning with Ethereum's long-term scalability goals and Vitalik Buterin's vision for a more powerful decentralized system.
‍Chinese Authorities Issue Warning on "Test Card" Virtual Currency Scams Law enforcement agencies in Shanghai, Yunnan, Gansu, and Hainan are alerting the public to a new scam involving "test cards" for virtual currency. These cards, often presented as promotional gifts from supermarkets, are distributed by individuals recruited through part-time job ads and coordinated via overseas apps. Distributors meticulously document their activities, receiving commissions in virtual currency to hide the illicit financial trail. Authorities stress that even those distributing these cards for small profits risk being considered accomplices in organized crime, with legal consequences. These "free" benefits are designed to harvest personal data and funnel victims into fraudulent investment schemes. This evolving trend blends digital asset scams with traditional marketing. The public is urged to be vigilant against unverified offers and QR codes.
‍xAI Secures $20 Billion in Series E Funding Led by Nvidia and Cisco Elon Musk's AI venture, xAI, has successfully closed a $20 billion Series E funding round, exceeding its initial target. The investment, announced January 6, 2026, saw participation from Nvidia, Cisco Investments, and others. The capital will support the expansion of xAI's computing power, aiming for over one million H100 GPU equivalents by the end of 2025. Funds will also advance Grok 5 training and Grok Imagine development. However, xAI faces regulatory scrutiny from the EU, UK, France, India, and Malaysia over content moderation, particularly concerning the "Spicy Mode" generating deepfakes. The company has yet to announce adherence to the ISO 42001 AI management standard.