Tether Reduces Bank Exposure by $4.5 Billion
Tether’s latest audit report revealed that the company withdrew over $4.5 billion from banks during the first quarter to minimize counterparty risk. The decision followed market disruptions related to Circle’s exposure during the collapse of Silicon Valley Bank.
The move increased Tether’s U.S. Treasury holdings to over $53 billion, now representing 64% of its reserves. With the company’s stablecoin market cap rising from $66 billion to $82 billion, Tether’s management said the changes significantly improved its balance sheet resilience.
Ripple Gains Legal Victory Against the SEC
Ripple achieved a partial victory in its long-standing legal battle with the United States Securities and Exchange Commission. A U.S. judge denied the SEC’s motion to seal internal communications known as the “Hinman documents,” which discuss Ethereum’s classification as a non-security.
The decision marks a transparency milestone and could influence Ripple’s defense, as it continues to argue that XRP should not be treated as a security. Ripple has already spent over $200 million fighting the case, with CEO Brad Garlinghouse calling the decision “a win for transparency.”
Ledger Faces Backlash Over Recovery Service
Hardware wallet maker Ledger introduced its new feature, Ledger Recover, sparking controversy within the crypto community. The service divides users’ seed phrases into encrypted fragments distributed to third-party entities for safekeeping.
Security experts and users voiced concerns about privacy and data security, citing Ledger’s previous 2020 data leak that exposed customer information. Critics argue that the recovery feature introduces a potential backdoor to wallets, undermining user trust.
Worldcoin Seeks $100 Million in Funding
Worldcoin, the project co-founded by OpenAI CEO Sam Altman, is reportedly in advanced talks to raise $100 million. The initiative aims to create a global, collectively owned digital currency.
The funding comes as Worldcoin prepares to launch its blockchain protocol and roll out its “verified human” wallet system. The project continues to attract both attention and controversy due to its ambitious goal of linking digital identity verification with cryptocurrency access.
Bitcoin Poised to Benefit from Rate Cuts
Analysts suggest that lower U.S. interest rates could serve as a positive catalyst for Bitcoin and broader crypto markets. With Argentina’s ongoing economic struggles and rising inflation, global demand for decentralized assets like Bitcoin continues to strengthen.
As traditional finance faces instability, the week’s developments underscore the growing intersection between blockchain innovation, regulation, and macroeconomic shifts shaping the future of digital assets.
