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<a href="#digital">Digital Asset Firms, Fintechs and Banks Announce Stablecoin Initiatives</a>

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<a href="#fintech">Fintech Firms Launch Network for Digital Asset Companies, ZK Proof Integration</a>

<a href="#stablecoin">Report Provides New Data on Global Stablecoin Payments</a>

<a href="#sec">SEC Chairman Atkins, Commissioner Peirce Note Key Crypto Initiatives for 2026</a>

<a href="#paper">Paper Addresses Crypto Risks in Uncleared Markets</a>

<a href="#enforcement">Enforcement Actions Target Bitcoin Ponzi Scheme, Crypto Mining Fraud</a>

<a href="#defi">DeFi Protocol Hacked, Report Details Crypto Use in Human Trafficking</a>

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Digital Asset Firms, Fintechs and Banks Announce Stablecoin Initiatives

By <a href="https://www.bakerlaw.com/RobertAMusiala">Robert A. Musiala Jr.</a>

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A digital assets-focused affiliate of a major U.S. fintech company recently announced that it “has received conditional approval from the Office of the Comptroller of the Currency (OCC) to organize a federally chartered national trust bank.” According to a company press release, subject to OCC requirements and final approval, the OCC charter will enable the company to offer custody of digital assets, stablecoin issuance and orchestration, and stablecoin reserve management.&nbsp;&nbsp;

In more stablecoin news, Modern Treasury, a U.S.-based payments and fintech company, recently announced the launch of Modern Treasury Payments, an “integrated payment service provider (PSP)” that leverages the company’s “banking, blockchain and compliance infrastructure” and seeks to provide merchants “a faster path to market than BaaS or securing … bank sponsorships.” According to the press release, “Modern Treasury Payments enables companies to programmatically open payment accounts and make payments via ACH, wire, RTP/FedNow, push-to-card and stablecoins, including USDG, USDP and USDC (USDT coming soon).”

In the EU, a major EU bank, BBVA, recently announced that it has joined “a consortium of eleven major European financial institutions that have formed a joint venture, Qivalis, to launch a euro-pegged stablecoin.” According to a press release, the stablecoin is scheduled for launch in the second half of 2026. Separately, an EU electronic money issuer, Quantoz, recently announced a partnership with a major credit card provider to enable the company to offer stablecoin payment products in Europe.

For more information, please refer to the following links:

<a href="https://www.bridge.xyz/blog/bridge-receives-occ-conditional-approval-to-organize-a-federally-chartered-national-trust-bank">Bridge Receives OCC Conditional Approval to Organize a Federally Chartered National Trust Bank</a>

<a href="https://www.businesswire.com/news/home/20260218135504/en/Modern-Treasury-Launches-Payments-An-Integrated-Payment-Service-Provider-PSP-for-Fiat-and-Stablecoins">Modern Treasury Launches Payments: An Integrated Payment Service Provider (PSP) for Fiat and Stablecoins</a>

<a href="https://www.bbva.com/en/innovation/bbva-joins-banking-consortium-to-issue-european-stablecoin/?utm_source=substack&amp;utm_medium=email">BBVA Joins Banking Consortium to Issue European Stablecoin</a>

<a href="https://cointelegraph.com/news/quantoz-gains-visa-principal-membership-to-issue-stablecoin-linked-debit-cards-in-europe">Quantoz gains Visa nod to issue stablecoin-linked debit cards in Europe</a>

Fintech Firms Launch Network for Digital Asset Companies, ZK Proof Integration

By <a href="https://www.bakerlaw.com/professionals/keith-r-murphy/">Keith R. Murphy</a>

According to a recent press release, a global payments and financial technology company announced a new real-time cash settlement platform that allows digital asset companies to securely store and transfer U.S. dollars.&nbsp;The platform reportedly allows digital asset companies to distribute their fiat funds across the company’s network of more than 1,100 insured U.S.-based financial institutions, as opposed to routing those funds outside of the traditional banking systems or pushing those funds on-chain.&nbsp;According to the release, the platform provides “real-time settlement speed and flexible operating windows demanded by digital asset companies.”

In related news, Starkware, a software company specializing in blockchain scalability and privacy, announced that it is integrating Nightfall, an open source zero-knowledge privacy layer developed by a “Big Four” accounting firm, into the company’s Layer 2 network. The integration is intended to enable confidential institutional transactions on public blockchains, according to a recent report.&nbsp;Among other benefits, institutions would be able to use public blockchain rails for transactions including private B2B payments, treasury operations and tokenized asset transfers without the risk of exposing transaction details, yet maintain the ability to support selective disclosure and compliance requirements, according to the report.&nbsp;

<a href="https://investors.fiserv.com/news-releases/news-release-details/fiserv-introduces-indx-real-time-cash-settlement-platform">Fiserv Introduces INDX, a Real-Time Cash Settlement Platform for Digital Asset Companies</a>

<a href="https://www.prnewswire.com/il/news-releases/private-blockchain-payments-arrive-on-public-rails-302689573.html">Private Blockchain Payments Arrive on Public Rails</a>

<a href="https://www.theblock.co/amp/post/390129/starkware-integrates-ey-built-nightfall-privacy-tech-into-starknet-to-provide-confidential-institutional-transactions-on-public-blockchains">StarkWare integrates EY-built Nightfall privacy tech into Starknet to provide confidential institutional transactions on public blockchains</a>

Report Provides New Data on Global Stablecoin Payments

By <a href="https://www.bakerlaw.com/professionals/jonathan-cardenas/">Jonathan Cardenas</a><a href="https://www.bakerlaw.com/VeronicaReynolds"></a>

A major management consulting firm recently published a report analyzing global stablecoin adoption trends in the payments sector.&nbsp; In the report, the consulting firm analyzes the “truth behind the numbers” with respect to the adoption and use of stablecoin payments in the “real economy.”&nbsp; According to the report, the vast majority of stablecoin activity is focused on addressing economic friction points in the settlement of high-value cross-border transactions, including cryptocurrency trading, derivative collateral transfers, protocol mechanics and intermediary routing, rather than on traditional payments for goods and services.&nbsp;

The report suggests that stablecoin-based payments for the exchange of goods and services amount to only 7 percent of all stablecoin activity, with B2B payments noted as the most prominent form of on-chain stablecoin-based payments, followed by C2C, C2B and B2C stablecoin payments. While real economy stablecoin payments represent a minority of overall stablecoin activity, the report notes that such use cases are growing quickly as a result of increased regulatory clarity in major jurisdictions as well as increased levels of investment from the public and private sectors.&nbsp;

For more information, please refer to the following link:

<a href="https://www.bcg.com/assets/2026/white-paper-stablecoin-payments-truth-behind-numbers.pdf">Stablecoin Payments The Truth Behind the Numbers</a>

SEC Chairman Atkins, Commissioner Peirce Note Key Crypto Initiatives for 2026

By <a href="https://www.bakerlaw.com/RobertAMusiala">Robert A. Musiala Jr.</a>

U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins and SEC Commissioner Hester M. Peirce recently spoke at the ETHDenver conference. In their remarks, which were published on the SEC website, among other things, the chair and commissioner noted the following expected crypto initiatives for 2026:

Continued coordination with the U.S. Commodity Futures Trading Commission (CFTC) to further Project Crypto, including harmonization, joint rulemaking and a common, coordinated approach;

An SEC framework to explain how we think about crypto assets that are subject to an investment contract;

An innovation exemption to facilitate limited trading of certain tokenized securities on novel platforms, with an eye toward developing a long-term regulatory framework;

A rulemaking proposal to establish commonsense pathways for people to raise capital in connection with the sale of crypto assets;

No-action letters and exemptive orders to provide additional clarity, including to address wallets and other user interfaces that are not subject to registration under the Exchange Act;

Rulemaking on custody of non-security crypto assets, including payment stablecoins, by broker-dealers;

A transfer agent modernization rulemaking that will accommodate the role that blockchain can play in recordkeeping; and

Additional guidance and no-action letters to help people understand how existing rules apply to their unique factual circumstances.

In his remarks, Chairman Atkins also provided further detail on his views regarding an innovation exemption and the potential offered by embedding compliance into smart contract code, privacy-preserving technologies and tokenization.

<a href="https://www.sec.gov/newsroom/speeches-statements/atkins-peirce-021826-number-go-down-other-schadenfreude">Number Go Down and Other Schadenfreude</a>

<a href="https://x.com/EthereumDenver/status/2024241537035751463?utm_source=securitiesdocket.beehiiv.com&amp;utm_medium=newsletter&amp;utm_campaign=musk-argues-sec-s-disclosure-case-against-him-is-unconstitutional-and-selective-enforcement&amp;_bhlid=3090c5bb0f2a4002636d934cf5dedb698a5416cb">ETHDenver Video</a>

Paper Addresses Crypto Risks in Uncleared Markets

The board of the U.S. central bank recently published a paper titled Initial Margin for Crypto Currencies Risks in Uncleared Markets. According to an abstract, the paper examines “prospective classification of crypto currencies risks within the ISDA Standardized Initial Margin Model (SIMM) framework for calculation of initial margin on trades sensitive to cryptocurrencies’ risk factors in the uncleared market.” The paper finds that cryptocurrencies “are best classified into a distinct risk class within SIMM that is split into two buckets – pegged and floating (unpegged) crypto currencies as risk factors.” Within the cryptocurrencies risk class the paper suggests risk weights calibration methodology that is consistent with the existing approaches adopted in SIMM.

<a href="https://www.federalreserve.gov/econres/feds/initial-margin-for-crypto-currencies-risks-in-uncleared-markets.htm">Initial Margin for Crypto Currencies Risks in Uncleared Markets</a>

<a href="https://www.federalreserve.gov/econres/feds/files/2026009pap.pdf">Initial Margin for Crypto Currencies Risks in Uncleared Markets</a>

Enforcement Actions Target Bitcoin Ponzi Scheme, Crypto Mining Fraud

The U.S. Department of Justice (DOJ) recently announced that Praetorian Group International (PGI) Chairman and Chief Executive Officer Ramil Ventura Palafox was sentenced to 20 years in prison for money laundering and wire fraud in connection with operating a bitcoin Ponzi scheme through PGI that injured more than 90,000 investors. According to the DOJ press release, Palafox created an investor website programmed to fraudulently misrepresent to investors that their bitcoin investments were increasing in value whereas in reality Palafox was siphoning victims’ assets to fund his lavish lifestyle. The DOJ has stated that victims may be entitled to restitution.

In another enforcement action, the Texas State Securities Board announced that it has issued an emergency cease and desist order against respondents Blockchain Mint, MineTXC, TEXITcoin and their founder Robert J. Gray stemming from their alleged fraudulent offer and sale of cryptocurrency mining investments known as “Mining Packages” to Texas residents. The press release noted that the respondents, who referred to the Mining Packages as “‘seats on the rocket ship,’ which promised investors daily returns…” were not registered as securities dealers or agents as mandated by Texas state law. In a press release, Deputy Securities Commissioner Cristi Ramón Ochoa cautioned the public to be careful about investment opportunities they find on social media.

<a href="https://www.justice.gov/usao-edva/pr/praetorian-group-international-ceo-sentenced-20-years-prison-200m-bitcoin-ponzi-scheme">Praetorian Group International CEO sentenced to 20 years in prison for $200M bitcoin Ponzi scheme</a>

<a href="https://www.ssb.texas.gov/news-publications/texas-grounds-crypto-mining-investment-rocket-ship">Texas Grounds Crypto Mining Investment ‘Rocket Ship’</a>

DeFi Protocol Hacked, Report Details Crypto Use in Human Trafficking

By <a href="https://www.bakerlaw.com/AmosKim">Amos Kim</a>

According to a recent report, Moonwell, a Layer 2 DeFi lending protocol, lost approximately $1.78 million to an exploit caused by a pricing oracle misconfiguration. An oracle for a “Wrapped Staked ETH” asset incorrectly reported a value of $1.12 instead of the actual price of roughly $2,200, enabling opportunistic bots and borrowers to exploit protocol funds. A review of the compromised smart contracts reportedly revealed multiple commits co-authored by an artificial intelligence tool. Security researchers noted the vulnerability resulted from a lack of proper integration testing and end-to-end validation on the blockchain and cautioned against treating AI-generated code as production-ready.

Separately, a recent industry review evaluated the following five enterprise‑focused smart contract security audit tools: Project Eleven PQ Audit Suite, ConsenSys Diligence (MythX), Trail of Bits, CertiK, and Quantstamp &amp; Chainproof. The review evaluates the tools in the areas of multi-chain coverage, security depth and accuracy, integration fit, compliance and auditability, post-quantum readiness, and cost and support.

In a final notable item, Chainalysis published a blog with new findings from its 2026 Crypto Crime Report showing that cryptocurrency flows to suspected human‑trafficking‑related services grew 85 percent year‑over‑year to hundreds of millions of dollars. Key data from the blog includes the following:

Nearly half (48.8 percent) of transactions associated with Telegram‑based “international escort” services exceeded $10,000.

Escort and prostitution networks primarily use stablecoins, while child sexual abuse material (CSAM) vendors are shifting away from bitcoin through increased reliance on Monero.

CSAM networks have moved toward subscription models under $100 per month, with increased overlap with sadistic online extremism (SOE) communities.

Southeast Asian trafficking organizations receive funds globally, and many clearweb CSAM operations rely on U.S.-based hosting infrastructure to blend into normal internet traffic.

<a href="https://cointelegraph.com/news/moonwell-exploit-cbeth-oracle-misprice-ai-commits-testing-audits">Moonwell hit by $1.78M exploit as AI vibe coding debate reaches DeFi</a>

<a href="https://supplychaingamechanger.com/top-blockchain-audit-tools-compared-5-smart-contract-security-platforms-reviewed/">Top Blockchain Audit Tools Compared: 5 Smart Contract Security Platforms Reviewed!</a>

<a href="https://www.chainalysis.com/blog/crypto-human-trafficking-2026/">Chainalysis: Cryptocurrency Flows to Suspected Human Trafficking Services Surge 85% Year-over-Year</a>

Weekly Blockchain Blog – Feburary 23, 2026