Autor Cointelegraph By Sam Bourgi

Trezor has integrated native stablecoin yield functionality into Trezor Suite, the hardware wallet provider’s desktop and mobile application, in a move that could make earning yield on stablecoins more accessible to users who have traditionally avoided decentralized finance due to its complexity and security risks.Announced on Thursday, the feature comes through an integration with Morpho, a decentralized lending protocol built on Ethereum. The integration allows users to deposit USDt (USDT) and USDC (USDC) into pre-selected Morpho vaults directly through Trezor Suite without connecting external wallets or using separate DeFi applications.According to Trezor, deposits, withdrawals and reward claims are signed directly on users’ hardware wallets through the company’s clear-signing interface, which displays transaction details in human-readable form on the device screen.Source: TrezorAt launch, Trezor selected two Morpho vaults curated by Steakhouse Financial — USDC Prime and USDT Prime. The company said yield is generated from borrowing demand on Morpho rather than token incentive programs.Trezor is one of the largest crypto hardware wallet providers and is widely considered the second-largest player in the market behind Ledger.Wallet providers have recently been making a broad push to incorporate decentralized finance functionality directly into custody products while reducing the complexity traditionally associated with DeFi protocols. Ledger already offers native stablecoin yield through Ledger Live using Kiln-powered integrations with protocols including Morpho, Aave and Compound.Related: ERC-7943 author says institutions can’t play DeFi’s ‘pirate game’Stablecoin yield draws growing interest — and scrutinyStablecoin yield strategies have become one of the fastest-growing use cases in DeFi, allowing users to earn returns on dollar-pegged assets by lending them through onchain protocols.According to CoinMarketCap data, USDC yields can vary widely across platforms and market conditions, with some protocols offering double-digit annual returns. Supporters say stablecoin yield products offer crypto holders a way to generate passive income.However, the strategies also carry risks, including smart contract vulnerabilities, liquidity issues and exposure to centralized stablecoin issuers or counterparties.Ethereum co-founder Vitalik Buterin recently drew a distinction between decentralized finance and many of the yield-focused stablecoin products currently on the market. In a recent post, Buterin said that many “USDC yield” strategies remain heavily dependent on centralized issuers while failing to adequately address counterparty risk.Source: Vitalik ButerinButerin proposed two alternative models that he said align more closely with DeFi’s decentralized ethos: Ether-backed algorithmic stablecoins and overcollateralized real-world asset-backed stablecoins.Related: Crypto Biz: Institutions tighten their grip on Bitcoin, AI and prediction markets

Mastercard’s US transaction services unit has received a BitLicense from the New York State Department of Financial Services (NYDFS), allowing the payments giant to conduct regulated digital asset business activity in the state.The company announced the license approval on Wednesday, but did not unveil any new consumer-facing crypto products. Instead, Mastercard said it plans to continue developing payment and settlement infrastructure tied to digital assets, focusing specifically on stablecoins and tokenized deposits.New York’s BitLicense is widely regarded as one of the strictest state-level crypto regulatory frameworks in the United States. Companies offering certain crypto-related financial services to New York residents are generally required to obtain the license.Mastercard joins a growing list of companies that have recently secured a New York BitLicense as regulatory clarity around digital assets continues to evolve in the United States.Earlier this year, crypto financial services company Galaxy received approval to expand its institutional digital asset offerings in the state. Bitcoin payments company Strike, led by Jack Mallers, obtained both a BitLicense and money transmitter licenses to support its Bitcoin (BTC) focused payment services in New York.Source: MastercardThe BitLicense isn’t Mastercard’s first crypto-related expansion in New York. In February, MetaMask introduced a Mastercard-enabled payment card in the state that allows users to spend crypto directly from their self-custodied wallets at merchants that accept Mastercard.Related: Mastercard launches crypto partner program with a ‘who’s who’ of industryMastercard deepens both stablecoin and tokenization effortsThe BitLicense approval follows Mastercard’s recent acquisition of the stablecoin infrastructure company BVNK, valued at up to $1.8 billion. Expected to close later this year, the transaction included up to $300 million in performance-based payments and is aimed at strengthening the payments processor’s ability to connect traditional payment networks with blockchain-based transactions.The acquisition came months after crypto exchange Coinbase and BVNK mutually agreed to end takeover discussions.Earlier this month, Mastercard also said it completed its first cross-border US Treasury transaction on the XRP Ledger, underscoring the company’s growing focus on tokenized financial assets. Excluding stablecoins, the tokenization market is currently valued at more than $33.8 billion, according to industry estimates.Total RWA market size. Source: RWA.xyzRelated: Crypto Biz: Wall Street wants more than just BitcoinCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Several Bitcoin mining stocks rallied Tuesday, reflecting a broader equity surge driven by optimism around artificial intelligence productivity gains as more miners pivot toward AI and high-performance computing workloads.In addition to TeraWulf (WULF), which rallied by as much as 17% on news of a Kentucky data center acquisition site, Hut 8 (HUT), IREN (IREN) and Riot Platforms (RIOT) closed more than 5% higher on the day.The rally underscores growing investor enthusiasm for Bitcoin miners that are repurposing parts of their energy infrastructure and data center capacity to support AI and high-performance computing applications — businesses viewed as potentially more stable and lucrative than crypto mining alone.The gains came as the S&P 500 index hit fresh record highs above 7,500, led by a sharp rally in information technology and semiconductor stocks.The Philadelphia Semiconductor Index, which tracks the performance of major US chipmakers and semiconductor companies, surged 5.6% on Tuesday and is now up nearly 77% this year. Year-to-date returns for the Philadelphia Semiconductor Index (SOX). Source: Yahoo FinanceThe semiconductor boom has also boosted sentiment around Bitcoin miners expanding into AI infrastructure, given their access to large-scale power capacity and data center operations needed to support high-performance computing.Related: The real ‘supercycle’ isn’t crypto, it’s AI infrastructure: AnalystBitcoin miners emerge as AI infrastructure playersThe link between Bitcoin miners and the AI infrastructure buildout is becoming increasingly pronounced as miners leverage their large-scale power access and data center expertise to support high-performance computing workloads.Recent research from Bernstein found that 11 publicly traded Bitcoin miners control a current and projected power portfolio of roughly 27 gigawatts — a resource analysts believe could become critical as demand for AI data centers accelerates.11 public Bitcoin miners have a planned power portfolio of roughly 27 gigawatts. Source: BernsteinThe report posited that access to reliable electricity, rather than semiconductors alone, is emerging as the primary bottleneck for scaling AI infrastructure. That dynamic positions Bitcoin miners as strategic partners for hyperscalers and AI companies seeking ready-made power capacity and operational infrastructure.In a separate note, Bernstein analysts said the shift is already evident among large-scale miners, citing IREN as an example of a company increasingly pivoting away from Bitcoin mining toward AI infrastructure. The firm pointed to IREN’s recent agreement with Microsoft, which Bernstein estimates could support an annualized revenue run rate of roughly $3.7 billion for the company’s AI cloud infrastructure business.Related: CoreWeave’s $8.5B loan shows how AI is replacing crypto mining finance

Bitcoin miner TeraWulf has acquired a large data center development site in the US state of Kentucky, adding significant capacity to its artificial intelligence and high-performance computing (HPC) business as miners continue diversifying beyond Bitcoin.TeraWulf said Tuesday the site could eventually support more than 1 gigawatt of AI and HPC capacity. The company expects the first 500 megawatts to come online in 2028, with another 500 megawatts targeted by 2030.The site includes planned grid infrastructure and long-term power agreements, underscoring TeraWulf’s ongoing shift toward AI and HPC hosting alongside its traditional Bitcoin mining operations.The acquisition comes as TeraWulf’s HPC-related revenue jumped 117% in the most recent quarter, driven largely by its Western New York Lake Mariner facility, one of North America’s largest HPC campuses. Despite revenue growth, the company posted a wider quarterly loss as it continues to invest heavily in AI infrastructure.Source: Rittenhouse ResearchIts AI strategy is backed by a $3 billion financing deal arranged through Morgan Stanley and announced last September to support data center expansion. Google is helping backstop the debt financing.TeraWulf is among several Bitcoin mining companies expanding into AI and high-performance computing as margins in the mining sector come under pressure. Others pursuing similar strategies include Hut 8, HIVE Digital, MARA Holdings and IREN.Related: TeraWulf misses Q4 2025 estimates as Bitcoin mining revenue fallsWULF stock rises on data center expansion newsNews of the Kentucky site acquisition boosted TeraWulf (WULF) shares on Tuesday, as investors bet the deal would strengthen the company’s AI and high-performance computing expansion strategy.The stock rose as much as 13.6% in early New York trading, climbing to nearly $26 per share, its highest level in almost three weeks. Shares of industry tracker CoinShares Bitcoin Mining ETF (WGMI) were up 4.5% at last look. TeraWulf is the third-largest holding, at 10.86%, in that exchange-traded fund.TeraWulf has been among the best-performing crypto mining stocks this year, with shares up nearly 120% since the start of 2026. The rally has been driven largely by investor optimism around the company’s AI infrastructure business, growing HPC-related revenue and broader demand for data center capacity tied to artificial intelligence workloads.Terawulf (WULF) stock. Source: Yahoo FinanceThe gains have significantly outpaced the broader crypto mining sector, the S&P 500 index and much of the traditional technology sector.Related: Crypto Biz: Institutions tighten their grip on Bitcoin, AI and prediction markets

Institutional adoption continued to reshape the digital asset market this week, even as geopolitical tensions reminded investors that crypto remains sensitive to broader macro conditions.Digital asset funds suffered more than $1 billion in outflows as traders reduced risk exposure amid fading hopes for a durable ceasefire between the United States and Iran. At the same time, Tether tightened its grip on Twenty One Capital, Bernstein argued that Bitcoin miners are carving out a strategic role in the race to build artificial intelligence infrastructure, and Polymarket teamed up with Nasdaq to launch prediction markets tied to private companies.This week’s Crypto Biz underscores how institutions continue to influence the digital asset ecosystem.Crypto funds bleed $1 billion as geopolitical tensions trigger risk-off moveDigital asset investment products posted more than $1 billion in outflows last week as escalating tensions in the Middle East sent investors to the sidelines.According to CoinShares data, the withdrawals marked one of the largest weekly reversals so far this year, with Bitcoin and Ether products accounting for the bulk of the redemptions. The sell-off came as markets dialed back hopes for a durable ceasefire between the US and Iran, prompting a broader flight from risk assets despite Bitcoin’s reputation as a macro hedge.The pullback underscores how quickly sentiment can shift when geopolitical shocks hit global markets. Institutional demand for crypto remains structurally stronger than in prior market cycles, but the latest outflows suggest allocators are still treating digital assets as part of the broader risk-on complex during periods of heightened volatility.Despite last week’s outflows, crypto exchange-traded products have recorded nearly $4.9 billion in year-to-date inflows. Source: CoinSharesTether deepens its Bitcoin treasury bet with SoftBank-backed Twenty OneTether has acquired SoftBank’s stake in Twenty One Capital, tightening its grip over one of the crypto industry’s largest corporate Bitcoin vehicles.The stablecoin issuer purchased the Japanese conglomerate’s roughly 26% stake in the company for an undisclosed amount as Twenty One Capital prepares to broaden its business beyond Bitcoin accumulation into Bitcoin-related financial services. Led by Strike founder Jack Mallers, Twenty One launched with backing from Tether, Bitfinex, Cantor Fitzgerald and SoftBank, and has accumulated more than 42,000 BTC on its balance sheet.The transaction further consolidates Tether’s influence over the company as institutional demand for Bitcoin treasury exposure expands.Twenty One Capital has amassed a $3.34 billion Bitcoin position. Source: BitcoinTreasuries.NETBernstein says Bitcoin miners are becoming strategic assets in the AI raceBitcoin miners are emerging as valuable infrastructure partners for artificial intelligence developers, giving these companies a longer runway to diversify into data centers and high-performance computing, according to Bernstein research.Bernstein’s analysts said miners possess two resources that are increasingly scarce amid the AI boom: large-scale power access and data center capacity. Companies that built their operations around energy-intensive Bitcoin mining are now repurposing portions of that infrastructure to host high-performance computing workloads for AI customers.Bernstein argued that the shift could unlock new revenue streams and higher valuations for miners, particularly as block rewards become less lucrative following each Bitcoin halving cycle. The convergence of crypto and AI is transforming what were once cyclical commodity businesses into strategic infrastructure plays tied to two of the market’s most capital-intensive industries.11 publicly traded crypto miners have expanded their planned power portfolios. Source: BernsteinPolymarket partners with Nasdaq to bring prediction markets to private companiesPolymarket has partnered with Nasdaq to launch a category of prediction markets that lets users forecast the future valuations of private, pre-IPO companies.The initiative will allow participants to trade on private-company milestones, including valuation targets, IPO timing and secondary market activity. By expanding beyond elections and macro events, the partnership pushes prediction markets deeper into the world of venture capital and startup investing.The collaboration also highlights how institutions are warming to event-based forecasting. For crypto-native platforms like Polymarket, alliances with established financial infrastructure providers could help legitimize prediction markets as an alternative tool for price discovery and investor sentiment.Source: CointelegraphCrypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.