Global (Ethereum Protocol): Ethereum Shifts Protocol Infrastructure Toward
Institutional Privacy and Quantum Security

Vitalik Buterin has updated Ethereum’s long-term development guide, formally shifting
the network’s focus toward quantum resistance and on-chain transaction
confidentiality.
To address the privacy requirements of large-scale cryptocurrency participants,
developers plan to introduce mechanisms that conceal financial balances and allow
value transfers without revealing full historical ledgers.
The updated development strategy also includes the integration of modern artificial
intelligence for formal protocol verification and the future implementation of gas
futures.
Furthermore, the “Lean Ethereum” initiative is exploring alternative computing
architectures, such as RISC-V, alongside ongoing improvements to the existing
Ethereum Virtual Machine (EVM) to systematically streamline and optimize protocol
execution.
This network evolution coincides with a broader ecosystem restructuring, leading to the
creation of independent organizations focused on developing institutional-grade privacy
technology. Ultimately, these structural upgrades aim to maintain network scalability
and censorship resistance while securing operations against advanced cryptographic
threats.

European Economic Area (EEA): Zama Lists Privacy Token on Revolut Following
DeFi Vault Deployments

Zama has listed its native token on the Revolut application across the European
Economic Area, opening trading to the fintech’s regional user base.
The company develops privacy infrastructure using Fully Homomorphic Encryption
(FHE) to keep cryptocurrency balances and transactions encrypted on public
blockchains like Ethereum.
Prior to this retail listing, Zama deployed its technology in decentralized finance by
launching a confidential USDC vault in partnership with Morpho and Steakhouse
Financial.
Earlier this year, the protocol’s technology successfully shielded and encrypted over
$121 million in digital assets on the Ethereum network.
Eligible Revolut users can trade the token with zero starting fees or withdraw it to self-
custody wallets for on-chain use.
Later this year, Zama plans to launch a “Learn and Earn” campaign on Revolut to further
educate customers about blockchain confidentiality.

United Kingdom: Coinbase Expands Regulated Hedging Tools with UK Institutional
Derivatives Launch

Authorized under a newly secured MiFID license, Coinbase is introducing a suite of
cryptocurrency derivatives designed specifically to serve professional UK investors.
The platform now supports multi-leg crypto options strategies, dated futures that price
in the cost-of-carry, and perpetual contracts that trade continuously.
These instruments provide qualified investors and funds with the infrastructure required
to execute advanced hedging protocols within a heavily regulated environment.
The rollout is strictly limited to classified professional clients, as UK financial
authorities have maintained a ban on retail crypto derivatives since 2021.
By offering these institutional-grade tools, Coinbase aims to provide a compliant
alternative for professional traders who previously relied on unregulated offshore
venues.
This product expansion represents another phase in the company’s overarching strategy
to consolidate spot trading, derivatives, and stablecoins into a single verified
ecosystem.

Kenya: Kenya Formalizes Institutional Crypto Oversight with Strict Stablecoin
Licensing Rules

Kenya has formally placed its digital asset industry under the oversight of the Capital
Markets Authority and the Central Bank through a newly gazetted Virtual Asset Service
Provider (VASP) framework.
A central focus of the regulation aims to manage the influence of foreign-issued
stablecoins on the domestic economy, requiring these assets to be officially approved
and issued by licensed entities before local trading is permitted.
Policymakers instituted these controls to protect domestic monetary sovereignty
against dollarization, though industry experts note this approach must be carefully
managed to avoid fragmenting local access to deep global stablecoin liquidity pools.
In response to the regulatory clarity, institutional-focused digital asset infrastructure
providers are preparing to apply for licenses covering trading desks, stablecoin treasury
services, and global settlement capabilities.
Industry executives suggest that while the compliance obligations are stringent, they
establish a high bar for security that filters out bad actors and provides certainty for
institutional capital.
Ultimately, this framework intends to balance the growing adoption of cryptocurrency
rails with robust requirements for market stability and investor protection.

China: Beijing Restricts Private RMB Stablecoins to Maintain Sovereign Capital
Controls

Chinese regulatory authorities have explicitly prohibited the unauthorized issuance of
RMB-pegged stablecoins to maintain strict oversight over capital accounts and cross-
border settlements. The February 2026 directive from the People’s Bank of China
formalized an ongoing crackdown; months prior, major technology firms including Ant
Group and JD.com had already shelved their plans to launch offshore yuan stablecoins
following initial regulatory intervention.
The Hong Kong Monetary Authority has mirrored this stance, granting its initial
regulatory licenses strictly for Hong Kong dollar tokens rather than offshore yuan
stablecoins.
Instead of permitting decentralized bearer-style tokens, Beijing is consolidating digital
currency activity through its state-controlled e-CNY network and permissioned cross-
border payment platforms.
For institutional investors and hedge funds, this regulatory landscape eliminates the
prospect of utilizing a highly liquid, privately issued yuan stablecoin.
Market participants seeking compliant offshore yuan exposure must therefore utilize
traditional financial instruments, such as deposits and forwards, or state-approved
settlement infrastructure.

With thanks as ever to Dean Shuker and Aviv Barkan