The Protocol: Your Weekly Wrap of Key Developments in Cryptocurrency
Welcome to The Protocol, CoinDesk’s insightful weekly wrap-up that unpacks the most pivotal stories in cryptocurrency tech development. We’re your hosts, Margaux Nijkerk and Jamie Crawley, here to guide you through some exciting innovations and strategic movements in the crypto space.
Highlights from This Issue:
- SoFi Leverages Bitcoin Lightning for Quick Remittances
- Bitlayer Expands to Solana with Bitcoin-Backed Token, YBTC
- Valantis Acquires stHYPE to Enhance Liquid Staking on Hyperliquid
- Hyperbeat Raises $5.2M Backing from Major Investors
SoFi Ushers in Real-Time International Money Transfers
SoFi Technologies is taking a giant leap into the world of crypto by integrating the Bitcoin Lightning Network for its remittance services. Through a new partnership with Lightspark, the company aims to facilitate quick and efficient transfer of money across borders. Set to roll out later this year, SoFi’s innovative remittance product will allow users to transfer U.S. dollars through its app, with recipients receiving deposits in their local currency.
Utilizing Lightspark’s Universal Money Address (UMA), this service will streamline existing remittance processes, providing upfront exchange rates and fees – a common challenge faced by users of traditional services. Following their previous temporary halting of crypto operations to transition into a national bank, SoFi seems poised to re-establish a significant presence in the digital asset arena, now aiming to reform the less-than-ideal remittance methods currently dominating the market.
Bitlayer Introduces YBTC to the Solana Ecosystem
In an exciting development for Bitcoin DeFi, Bitlayer is partnering with Kamino Finance and Orca to launch its Bitcoin-backed token, YBTC, on the Solana network. This initiative aims to blend the security of Bitcoin with the speed and scalability of Solana, presenting a unique approach to decentralized finance (DeFi).
YBTC, pegged 1:1 with Bitcoin, is part of Bitlayer’s innovative BitVM bridge, enabling seamless transfers without centralized intermediaries. This token is designed for Bitcoin holders to gain exposure and yield-generating opportunities across decentralized applications. As Solana users hold YBTC, they can earn through Kamino’s vaults that provide optimized returns, amplifying asset growth effortlessly. This merger signifies an essential step toward expanding Bitcoin’s utility in the growing DeFi ecosystem.
Valantis Expands Liquid Staking Reach with stHYPE Acquisition
In a strategic move, Valantis has acquired Staked Hype (stHYPE), which ranks as the second-largest liquid staking token on the Hyperliquid platform. While financial terms of the acquisition remain undisclosed, stHYPE’s impressive total value locked (TVL) of approximately $180 million reflects its prominent position in liquid staking.
Post-acquisition, Valantis Labs will manage stHYPE’s operations and development. This acquisition reinforces Valantis’s earlier efforts with DEX pools tailored for stHYPE and hHYPE, both of which have amassed nearly $70 million in TVL. With liquid staking constituting a significant aspect of Hyperliquid’s ecosystem, this acquisition is set to bolster the platform’s liquidity and scalability in the growing DeFi landscape.
Hyperbeat Secures $5.2M Seed Funding
Hyperbeat, a protocol designed for yield infrastructure on Hyperliquid, has successfully raised $5.2 million in an oversubscribed seed round, co-led by ether.fi Ventures and Electric Capital. This funding aims to enhance yield infrastructure accessibility for traders, protocols, and institutions within the Hyperliquid ecosystem.
The raise attracted investments from notable names such as Coinbase Ventures and Chapter One, reflecting a growing interest in Hyperliquid’s innovative offerings. Hyperbeat serves as a yield layer, enabling all participants to earn directly from their on-chain portfolio, ultimately unlocking yield previously reserved for sophisticated market players. After surpassing $2.1 billion in total value locked, Hyperliquid’s growth signals an increasing institutional interest, marking a promising trajectory for the decentralized finance landscape.
Other Noteworthy Developments
SkyBridge Capital, led by Anthony Scaramucci, plans to tokenize $300 million worth of hedge funds on the Avalanche blockchain. This initiative involves the Digital Macro Master Fund and Legion Strategies, establishing a partnership with tokenization provider Tokeny. With operational support from Apex Group, this move seeks to leverage the power of blockchain to enhance asset management.
Meanwhile, Thumzup Media, a company linked to Donald Trump Jr., has announced its intention to acquire Dogehash Technologies, pivoting toward industrial-scale crypto mining. This all-stock transaction, valued at approximately $153.8 million, would lead to a rebranding as Dogehash Technologies Holdings, Inc., and align the firm with DeFi initiatives in the burgeoning Dogecoin ecosystem.
Regulatory Developments
The cryptocurrency space is currently pushing back against Wall Street’s attempts to reform the newly established stablecoin laws in the U.S. The Crypto Council for Innovation and other industry players are urging lawmakers to maintain provisions in the GENIUS Act that support innovative financial structures, advocating for regulations that allow for fair competition between traditional banks and crypto issuers.
Additionally, U.S. Federal Reserve Vice Chair Michelle Bowman recently presented a forward-thinking perspective on cryptocurrency during a speech. Emphasizing the need for a clear regulatory framework, she warned that banks that resist embracing the rapid advancements in digital assets risk losing their relevance in the evolving financial landscape.
Upcoming Events
For those interested in the bustling world of blockchain and cryptocurrency, several key events are on the horizon:
- Sept. 22-28: Korea Blockchain Week, Seoul
- Oct. 1-2: Token2049, Singapore
- Oct. 13-15: Digital Asset Summit, London
- Oct. 16-17: European Blockchain Convention, Barcelona
- Nov. 17-22: Devconnect, Buenos Aires
- Dec. 11-13: Solana Breakpoint, Abu Dhabi
- Feb. 10-12, 2026: Consensus, Hong Kong
- May 5-7, 2026: Consensus, Miami
Stay tuned for further updates as we navigate the ever-evolving world of cryptocurrency and blockchain technology!
