The Aave Chan Initiative, a key delegate and service provider for the Aave DAO founded by Marc Zeller, plans to end its engagement with the DAO by July and wind down operations over four months. The decision follows BGD Labs' February 20 announcement that it will stop contributing in April, deepening concerns over Aave's governance, revenue sharing and voting power distribution. ACI is also proposing to convert its existing GHO funding stream into a lump-sum payment to support an orderly transition while it exits.

JPMorgan analysts, led by Nikolaos Panigirtzoglou, argued in a recent report that potential mid-year approval of U.S. crypto market structure legislation, commonly called the CLARITY Act, could become a key tailwind for digital asset markets in the second half of the year. They highlighted eight main provisions, including clearer token classifications, fundraising relief for new projects, a path for some assets to shift from securities to commodities oversight, regulatory clarity for intermediaries, and tax and tokenization measures. The analysts maintained a constructive long-term view on crypto and reiterated a bitcoin price target of $266,000, while bitcoin was trading near $65,425 at the time of writing.

Onchain analytics firm CryptoQuant reported that bitcoin exchange inflows have become increasingly dominated by large holders, with the exchange whale ratio climbing to 0.64, the highest level since October 2015. The firm also highlighted that average bitcoin inflows per transaction rose in February while stablecoin and altcoin flow patterns point to reduced buying power and persistent selling pressure.

TD Cowen's Jaret Seiberg wrote Wednesday that U.S. states retain a slight legal edge over sports-focused prediction markets, despite the CFTC backing federal oversight with an amicus brief filed Tuesday. He said the Crypto.com vs. Nevada case could reach the Supreme Court, extending regulatory uncertainty into 2027–2028.

Coinbase expanded its onchain, Morpho-powered loan product by accepting XRP, Dogecoin, Cardano and Litecoin as collateral. The exchange said eligible U.S. customers outside New York can borrow up to $100,000 in USDC without selling those tokens. The program, launched last year with bitcoin and ether, has recorded more than $1.9 billion in originations, according to company data.

Zerohash has integrated the Monad Layer 1 blockchain and USDC issued on Monad into its crypto infrastructure platform, enabling clients to deploy stablecoin payment services without operating their own blockchain stack or licenses. The company, valued at $1 billion after a Series D-2 round that lifted its total funding to $275 million, said the setup targets use cases such as real-time account funding, cross-border transfers, B2B settlement, and onchain commerce. Executives from Zerohash and the Monad Foundation highlighted Monad's performance and cost profile, and Zerohash plans to add more stablecoins on Monad as they launch.

Fidelity Investments launched its U.S. dollar-backed stablecoin, Fidelity Digital Dollar (FIDD), for retail and institutional users. Issued on Ethereum, FIDD can be bought or redeemed directly with Fidelity for $1 via its platforms, will trade on external exchanges where listed, and is transferable to any Ethereum mainnet address.

Bitwise Asset Management has rolled out its first onchain vault strategy on the Morpho decentralized lending platform, aiming for yields of up to 6% on USDC. The vault allocates capital to over-collateralized lending markets while Bitwise handles strategy design and risk oversight, with user assets remaining non-custodial onchain.

The Government of Bermuda announced at the World Economic Forum in Davos that it is collaborating with Coinbase and Circle to develop what it calls a fully onchain national economy. The plan includes piloting stablecoin payments across government agencies, expanding USDC use among local merchants, and supporting financial institutions in adopting tokenization and other digital finance tools. Building on its 2018 Digital Asset Business Act and prior USDC airdrop initiatives, Bermuda aims to lower payment costs and broaden access to global finance for residents and businesses.