Author: Stephanie Bedard-Chateauneuf

Atlanta-based crypto payment processor Bitpay has launched a groundbreaking service called HODL Pay, offering users a way to spend stablecoins without selling their cryptocurrency holdings. With a focus on long-term investors, HODL Pay leverages decentralized finance (DeFi) to unlock liquidity while allowing users to maintain exposure to digital assets.

This new option marks a major milestone in the evolution of crypto payments by letting holders borrow against their assets to make purchases. As adoption grows, HODL Pay could become a key bridge between the crypto economy and traditional commerce.

How HODL Pay Works

At the heart of HODL Pay is a seamless integration between Bitpay and Aave, a popular DeFi lending platform. To use the service, customers must deposit crypto assets as collateral on Aave. Supported networks include Ethereum, Arbitrum, Base, Polygon, and Optimism.

Once assets are deposited, users can borrow stablecoins—like USDC or DAI—directly from the Aave platform. These stablecoins can then be used to settle any Bitpay invoice, including those for:

• Retail purchases
• Travel bookings
• Gift cards
• Bill payments

Whether shopping for everyday goods or larger items, such as vehicles, HODL Pay allows users to access funds without triggering taxable events by selling their holdings.

The Power of HODLing While Spending

The name “HODL Pay” pays homage to the popular crypto slang HODL—a misspelled version of “hold” that has come to represent long-term belief in crypto assets. For users who want to hold onto their Bitcoin (BTC), Ethereum (ETH), or other digital currencies, this service is a game-changer.

By borrowing stablecoins, users can tap into the value of their crypto without relinquishing ownership. This is particularly useful during bull markets, when many prefer to maintain their positions in anticipation of price appreciation.

According to Bitpay Chief Marketing Officer Bill Zielke, “With HODL Pay, Bitpay gives users an innovative way to spend confidently today without giving up their future growth.”

Global Support with No Merchant Setup Required

One of HODL Pay’s biggest advantages is its instant global availability. Any merchant already accepting Bitpay automatically supports HODL Pay—no additional setup or integration is needed.

This frictionless implementation makes the service appealing for merchants seeking to accommodate crypto-savvy consumers. Whether it’s a boutique clothing store or a luxury car dealer, businesses can now accept borrowed stablecoins as easily as they would accept Bitcoin or fiat.

For instance, Nick Dossa of Vegas Auto Gallery noted that the service provides increased flexibility for customers purchasing high-ticket items like exotic cars.

Layer 2 and the Future of Crypto Spending

As blockchain networks seek scalability, layer two (L2) solutions are gaining popularity. Bitpay’s HODL Pay is fully compatible with major L2 chains like Polygon and Arbitrum, ensuring faster, cheaper transactions.

This compatibility supports Bitpay’s broader vision of enabling Web3 payments at scale. By aligning with popular L2 networks, HODL Pay reduces transaction fees and latency, making it viable for more frequent, real-world spending.

What It Means for the Future

HODL Pay isn’t just another crypto lending tool—it’s a potential catalyst for mainstream adoption of decentralized finance. It empowers users to manage wealth strategically while benefiting from real-world utility.

As the DeFi ecosystem matures and regulatory clarity improves, services like HODL Pay could become essential components of a modern financial toolkit. Crypto users get to HODL their assets and still participate in the economy—on their terms.

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Meta Platforms Inc. (NASDAQ:META) appears ready to re-enter the crypto space with a fresh angle—Meta stablecoin payments targeted at microtransactions and global payouts for content creators. According to a recent Fortune report citing five anonymous sources, the tech giant is exploring stablecoins as a means to reduce transaction friction, particularly for influencers on platforms like Instagram.

This would mark the first notable crypto development at Meta since the failure of its high-profile Libra project. However, this new strategy appears significantly more modest in scope and aims to address practical payment challenges rather than overhaul global finance.

From Libra to Utility: Meta’s Crypto Reboot

The pivot to Meta stablecoin payments signals a potential course correction following the collapse of Libra—later renamed Diem. Libra aimed to launch a multi-currency-backed stablecoin and was backed by heavyweights like PayPal (NASDAQ:PYPL), Visa (NYSE:V), eBay (NASDAQ:EBAY), and Mastercard (NYSE:MA). Regulatory pressure, particularly during the Biden administration’s early crypto-skeptic phase, forced the project’s shutdown. In 2022, Meta sold the remains of Diem to Silvergate Bank.

Now, instead of taking on the global monetary system, Meta is reportedly focused on streamlining small payouts to creators across borders—one of the most practical use cases for digital currencies. Stablecoins can provide near-instant, low-cost settlement, avoiding high conversion fees and slow bank transfers, especially in emerging markets.

Stablecoin Adoption on the Rise

The timing of Meta’s renewed crypto interest aligns with growing institutional adoption of stablecoins. Payment giants like Visa and Mastercard have already begun experimenting with stablecoin integration into their networks. Visa, for instance, has conducted USDC-based settlement pilots on Ethereum (ETH), indicating growing confidence in stablecoin infrastructure.

Last month, Citigroup (NYSE:C) released a report projecting the global stablecoin market cap could grow to $3.7 trillion under bullish conditions. The forecast was tied to positive regulatory trends and increased institutional trust in blockchain-based payment rails.

For Meta, joining this wave with a utility-driven focus—like stablecoin payments for Instagram influencers—may offer a realistic path to rebuilding its crypto credibility while sidestepping the scrutiny that tanked Libra.

Ginger Baker’s Role in Crypto Push

Leading Meta’s exploration of this new initiative is Ginger Baker, the company’s VP of product who joined earlier this year. Baker brings significant experience in fintech and crypto, and her involvement suggests the company is taking a cautious but informed approach to its payment evolution.

The reported discussions with infrastructure providers remain preliminary. No specific blockchain network or service partner has been named yet, though sources say the conversations focus on small-payout use cases—likely involving USD-pegged stablecoins such as USDC or USDT.

While no formal announcement has been made, the tone within Meta seems pragmatic. CEO Mark Zuckerberg recently called the Libra project “dead” during a public discussion with Stripe’s co-founder John Collison, distancing the new plans from the failed experiment.

A Smarter, Smaller Crypto Play

The idea of Meta stablecoin payments represents a shift from ambition to application. Rather than reinventing money, Meta may simply want to make it easier to pay creators in Nigeria, India, Brazil, or Indonesia without navigating slow, expensive fiat rails.

If executed correctly, this could not only reintroduce Meta to the crypto world in a friendlier light, but also improve user retention on its creator platforms by offering faster, borderless compensation.

Whether Meta eventually scales this solution beyond creator payouts remains to be seen. For now, the strategy appears to be: stay useful, stay quiet, and avoid the mistakes of the past.

With regulators more open to utility-based stablecoin use, and stablecoins themselves becoming part of the financial mainstream, Meta stablecoin payments might just stick.

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A massive Bitcoin short squeeze triggered nearly $1 billion in liquidations across the crypto market Thursday, marking the largest squeeze since 2021. The sudden surge propelled Bitcoin (BTC) above the $100,000 mark for the first time in months, shaking out over-leveraged traders and reigniting bullish momentum across digital assets.

The spike came after weeks of stagnant trading, catching many short sellers off guard. Ethereum (ETH) also broke out, soaring past a key resistance level at $2,100 and contributing to widespread market volatility.

Short Sellers Burned as Bitcoin Tops $100K

Thursday’s rally was one of the most dramatic in recent memory. According to Coinglass, more than $964 million in crypto futures were liquidated within 24 hours. Of that, $834 million came from short positions—bets that prices would fall—making it the largest Bitcoin short squeeze event in over three years.

Bitcoin alone accounted for $416 million in liquidations, including one massive $11.97 million BTC/USDT position on Binance. At the height of the frenzy, Bitcoin surged past $100,000 and briefly touched $102,000 before pulling back slightly. This marks the first time Bitcoin has traded in six-figure territory since early February.

The total crypto market cap also soared, hitting $3.3 trillion, its highest level since March.

Trade Deal Sparks Risk-On Sentiment

What triggered this historic Bitcoin short squeeze? A key catalyst was a newly announced U.S.-UK trade agreement. President Donald Trump described the deal as the beginning of “more global partnerships,” a comment that appeared to boost sentiment across risk assets, including crypto.

The renewed optimism came amid an already fragile market dynamic, with many traders positioned bearishly after weeks of consolidation. The sudden bullish reversal ignited a classic short squeeze—forcing short sellers to buy back their positions to cover losses, which only intensified upward momentum.

Ethereum Joins the Breakout

Ethereum followed closely behind Bitcoin’s move, surging past $2,100 after struggling for weeks. Despite concerns over the recent Pectra upgrade and the distracting rise of meme coins, ETH managed to outperform most major altcoins.

According to Santiment, an on-chain analytics firm, the Bitcoin short squeeze also benefited Ethereum, which saw $259 million in short liquidations. The firm called the move “contrarian,” noting that the market often reverses when retail sentiment hits extremes—a pattern that played out once again.

FOMO Returns, But for How Long?

As Bitcoin’s breakout reverberates through the market, analysts warn of a potential cooldown. While optimism is high, the rally was partially fueled by retail FOMO (fear of missing out) and aggressive media coverage, both of which have historically preceded short-term corrections.

Santiment suggested that the recent price spike could mark the beginning of another speculative cycle. However, with Bitcoin above $100K and the largest short squeeze since 2021 behind us, the path forward may depend on macroeconomic developments and continued institutional support.

Market Outlook After the Squeeze

The crypto market’s recovery has reignited interest in digital assets, especially among sidelined investors waiting for a signal. Still, whether this breakout proves to be a sustained uptrend or a temporary blowoff remains to be seen.

With Bitcoin reclaiming $100,000 and Ethereum showing renewed strength, all eyes are now on the Federal Reserve, inflation data, and geopolitical headlines that could shape the next phase of this volatile market.

For now, the Bitcoin short squeeze stands as a reminder of the crypto market’s explosive potential—and its unforgiving nature for those caught on the wrong side of momentum.

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Coinbase (NASDAQ:COIN) made headlines this week by announcing its $2.9 billion acquisition of Deribit, a leading crypto derivatives exchange. The Coinbase Deribit acquisition is now the largest merger in crypto history, and it signals a strategic push into the booming crypto options market. The landmark deal includes $700 million in cash and 11 million Coinbase shares, underscoring the company’s aggressive expansion beyond traditional spot trading.

In a blog post revealing the acquisition, Coinbase emphasized the significance of this move: “This isn’t just another addition; it’s foundational to our vision of creating the most comprehensive, compliant, and user-friendly derivatives platform globally.” This statement underscores how central Deribit will be to Coinbase’s future ambitions.

Deribit, founded in 2016, has become one of the world’s most trusted and liquid crypto options platforms. The firm raised $40 million in 2022 at a $400 million valuation, with backing from QCP Capital and Polybius Capital, according to Crunchbase. The Coinbase Deribit acquisition represents not only a substantial premium but also a major consolidation play in the evolving world of digital asset derivatives.

A Bold Expansion into Crypto Derivatives

Coinbase’s core business has historically centered around spot crypto trading, but declining trading volumes and tightening competition from international platforms have forced the company to diversify. By acquiring Deribit, Coinbase secures a dominant position in the high-margin crypto derivatives sector—particularly options, which have surged in popularity among institutional and professional traders.

Crypto derivatives allow traders to hedge risk, speculate on price movements, and manage volatility more efficiently. The addition of Deribit’s infrastructure to Coinbase’s compliance-forward ecosystem could help bridge the gap between crypto-native products and regulated financial markets.

This acquisition also sends a clear message: Coinbase intends to lead in every segment of the digital asset economy.

Crypto M&A Heats Up

The Coinbase Deribit acquisition is the latest in a flurry of high-value deals reshaping the crypto landscape. In recent months, Ripple Labs made waves by acquiring brokerage firm Hidden Road for $1.25 billion. Ripple, best known for its XRP token and blockchain payment technology, has seen a resurgence after the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit accusing the company of selling unregistered securities.

Kraken, another major U.S. exchange, also jumped into the M&A game by acquiring retail-focused futures platform NinjaTrader for $1.5 billion. These moves signal a shift from survival mode to expansion, particularly as expectations grow that the re-election of Donald Trump may lead to more favorable crypto regulation in the U.S.

Venture Funding Surges in Q1

M&A isn’t the only trend heating up—venture capital is flowing back into the space. According to Crunchbase, crypto and blockchain startups raised $3.8 billion in Q1 across 220 deals, representing a 138% increase over the prior quarter. That jump was largely fueled by Binance, which secured a $2 billion investment from MGX, an Abu Dhabi-based firm. It stands as the largest single investment in a crypto company to date.

The renewed investor interest, combined with consolidation among major players, paints a bullish picture for the future of crypto markets. Coinbase’s move to acquire Deribit is not just a signal of confidence in derivatives, but a sign of the industry’s next evolution: one that is institutional, global, and ready for mainstream adoption.

Looking Ahead

The Coinbase Deribit acquisition may set a new standard for how regulated U.S.-based crypto companies approach international markets. With Deribit’s stronghold in Europe and Latin America, Coinbase will gain access to new customer bases while potentially smoothing regulatory hurdles through its established compliance practices.

As crypto markets mature and global competition intensifies, this bold acquisition reflects a pivotal shift toward consolidation and strategic diversification. Whether it becomes a turning point for Coinbase—or for the crypto industry as a whole—remains to be seen, but one thing is clear: the game is changing.

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Efforts to advance stablecoin legislation in the U.S. Senate hit a major roadblock last week as partisan tensions and conflict-of-interest concerns derailed progress on the Genius Act. The bill, aimed at creating a federal framework for regulating stablecoins, failed to secure the 60 votes needed to proceed, sending shockwaves through the cryptocurrency industry and financial markets.

Stablecoin legislation has long been seen as a necessary step toward legitimizing digital assets backed by fiat currencies. The U.S. stablecoin market, valued at over $246 billion, has grown rapidly but operates in a legal gray zone. The Genius Act, proposed by Senate Republicans and backed by Senator Tim Scott, sought to clarify that status—but Democrats raised alarms over potential risks to consumers, national security, and the broader financial system.

Why the Genius Act Failed to Advance

The Senate vote on Thursday ended with 48 in favor and 49 opposed, falling short of the threshold required to advance the legislation without a filibuster. While Republicans largely supported the bill, two broke ranks, joining a majority of Democrats in opposing the motion.

Senate Majority Leader John Thune expressed frustration over the outcome. “I just don’t get it,” he said. “Six versions of this bill were drafted to address concerns, yet Democrats are unwilling to move forward.”

But Democratic leaders, including Senator Elizabeth Warren, were steadfast in their opposition. Warren argued that the bill “ignores basic protections that apply to every other financial product in America,” referring to its lack of consumer safeguards and regulatory oversight for issuers of dollar-backed cryptocurrencies.

The Trump Factor in Crypto Regulation

One of the more controversial issues surrounding the bill was former President Donald Trump’s involvement in the digital asset sector. Trump-affiliated companies, such as World Liberty Financial, have issued their own stablecoin, raising concerns over conflicts of interest.

While Trump’s crypto ventures were not officially cited by all dissenting Democrats, they became a focal point during Senate deliberations. Lawmakers questioned whether fast-tracking stablecoin legislation would benefit entities closely linked to Trump and his family, thereby undermining the bill’s legitimacy.

Senator Chuck Schumer and other high-ranking Democrats said the legislation lacked meaningful anti-money laundering safeguards and failed to set boundaries for stablecoin integration into the U.S. banking and payments system. Senator Ruben Gallego and eight other Democrats who initially supported the bill’s advancement later withdrew support over these concerns.

Industry Reactions and What Comes Next

Despite the failure to pass the Genius Act, the crypto industry remains hopeful. Kristin Smith, the outgoing CEO of the Blockchain Association, released a statement calling for continued bipartisan collaboration. “We look forward to next steps in this process and bipartisan discussion,” she wrote on X (formerly Twitter).

Similarly, Miller Whitehouse-Levine of the Solana Policy Institute echoed that sentiment, stating: “We are optimistic that bipartisan commitment to enact stablecoin legislation will get the Genius Act over the finish line.”

Meanwhile, activity in the House of Representatives suggests the debate is far from over. GOP lawmakers recently introduced a market structure bill that seeks to define regulatory jurisdictions between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for digital assets. If passed, this legislation could provide the clarity needed for traditional institutions to enter the crypto space with confidence.

Impact on Crypto Stocks

While the broader crypto market took the Senate setback in stride, companies like Coinbase (NASDAQ:COIN), Ripple Labs, and Kraken, all of which are impacted by stablecoin regulation, will likely monitor future developments closely. These firms have long advocated for regulatory clarity, viewing it as a catalyst for institutional adoption and product innovation.

For now, the failure to advance stablecoin legislation underscores the challenges of governing emerging financial technologies in a highly polarized political environment. But with both sides acknowledging the need for oversight, the path forward—though delayed—remains open.

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