Tether is integrating its USDT stablecoin into the Bitcoin Lightning Network using the Taproot Assets protocol.

The S&P 500 rose 0.53% on Thursday and is up 3.2% for the month, driven by positive tech earnings despite ongoing market volatility. Gold prices surged to a record high on Thursday due to safe-haven demand amid U.S. tariff threats. Spot gold rose 1.4% to $2,796.15 per ounce, while U.S. gold futures increased by 2% to $2,824. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 1.01%, with Bitcoin and Ether rising by 0.65% and 3.31%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is AR, which surged nearly 20.9% following KYVE's archiving of 10TB of Web3 historical data on Arweave.

Arweave (AR), launched in June 2018, is a decentralized platform for permanent data storage. It uses its AR cryptocurrency to ensure data permanence, offers easy web access, and partners with the Internet Archive to secure data preservation. KYVE has 

 over 10TB of compressed, trustless data onto Arweave, including historical chain data from Ethereum, Osmosis, Celestia, and Archway, making Web3 history easily accessible.

Check Out the Latest Prices, Charts, and Data of 

 its USDT stablecoin into the Bitcoin Lightning Network using the Taproot Assets protocol. This partnership, announced at the Plan B conference, aims to expand Bitcoin's functionality and allow USDT payments on Lightning. Tether, with a market cap of $139.4 billion, processed $10 trillion in transactions in 2024 and operates across multiple blockchains. The integration is expected to benefit users in emerging markets and support future transactions between AI agents and autonomous vehicles.

Yesterday, the BTC Spot ETF saw a total flow of $266.6 million, all from non-GBTC sources.

D3 is developing a DomainFi network on the Doma Protocol and has raised $25M from top VCs. They are partnering with projects like Solana Foundation and Avalanche. To potentially qualify for an airdrop, you can buy a domain for $10/year. Payments can be made with Ethereum or the domain's respective chain. Participation carries some risk.

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Tether Brings USDT to Bitcoin Lightning Network

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, as well as futures, options and perpetual contracts.

Markets faced a significant risk-off event early this week as DeepSeek's LLM announcement coincided with sharp declines in major indices and crypto markets. Despite the volatile sell-off in spot markets, open interest in perpetual swaps remained stable, with funding rates briefly turning negative before recovering. 

Options markets saw an increase in trading volume during the sell-off, although forward-looking volatility expectations declined. The period of positive funding rates for perpetuals ended due to bearish spot price action on Monday. In the options space, realized volatility fell below implied volatility, reflecting a small-scale repeat of the pre-inauguration term structure inversion. Notably, ETH options maintained a volatility premium over BTC options, while longer-dated volatility smiles exhibited a bullish skew toward out-of-the-money (OTM) calls.

Please check out the report’s highlights.

Options open interest data shows minimal change over the past week, except for the expiration and reopening of short-dated options. Despite the largest single-day trading volumes in call options this month — nearly $250M during the spot price sell-off — trade volume did not significantly impact volatility, which has declined for both realized and implied metrics. Positioning has split between short- and longer-tenor volatility smiles. Short-tenor options are exhibiting lower volatility and a neutral skew, while longer-dated volatility smiles are reflecting increased volatility expectations and a persistent bullish skew toward OTM calls, as has been the case since the election.

ETH options trading volume has surged over the past week, marking its strongest levels in a month. While late December 2024 and early January 2025 saw robust activity, recent data indicates a more active calls market, with open interest remaining heavily weighted toward calls. The early-week global market sell-off briefly shifted short-tenor ETH volatility smiles away from calls, reminiscent of the volatility term structure inversion seen before the inauguration. Despite ETH's spot recovery being weaker than BTC's, its options have maintained higher volatility levels.

Following last week's rally in spot price due to the launch of two presidential meme coins, Solana's price has retreated with the broader crypto market. However, positioning from the rally remains largely unchanged, with open interest in puts and calls remaining elevated and trading activity surpassing pre-rally levels. The stable levels of newly opened put options likely reflect protective buying intended to hedge profitable long positions in other instruments.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Jan 29, 2025): Options Market Recovers From Monday’s Sell-Off

Phantom wallet has officially integrated Sui, making it the first Move-based blockchain and third Layer 1 supported on the platform. 

The S&P 500 fell 0.47% amid Fed rate pause and mixed tech earnings. Gold fell 0.4% as the dollar and Treasury yields rose after the Fed held rates steady, offering little clarity on future cuts. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.07%, with Bitcoin and Ether rising by 2.99% and 2.90%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is TAI, which surged nearly 38.6% following the unveiling of the Sona framework by TARS AI for cost-efficient AI computation.

TARS AI (TAI), launched in 2022, is a decentralized, multichain platform offering AI-powered tools to help web3 projects launch and manage tokens efficiently. Rebranded in 2023, it supports eight blockchains, including Ethereum and BNB Chain, with plans for expansion. TARS AI is set to 

 two custom frameworks in V1 of its AI Market, including Sona, a proprietary framework compatible with DeepSeek AI for efficient, low-cost computations. More details will be revealed in February.

, making it the first Move-based blockchain and third Layer 1 supported on the platform. This gives Phantom’s 15 million users access to SUI, enabling them to send, receive, swap, and interact with Sui-based tokens and dApps. Sui has rapidly grown, reaching over $2 billion in TVL and becoming a major destination for Ethereum outflows. Phantom's CEO praised Sui’s scalability and user experience, aligning with their multichain vision. The integration marks a significant step in expanding Sui’s adoption and accessibility.

Yesterday, BTC Spot ETFs recorded $120.4M in inflows, entirely from non-GBTC funds.

 tasks to boost Grass points, offering up to 30% in bonuses. Users can earn boosts by swapping $10K on Lifinity, trading meme coins on Fighthorse, or betting $1K on Skate x Polymarket. These points may play a key role in the Eclipse airdrop.

Phantom Wallet Integrates Sui, Expanding Access for 15 Million Users

Ondo Finance is deploying its tokenized U.S. Treasury fund, OUSG, on the XRP Ledger (XRPL) within six months, expanding institutional access to tokenized real-world assets. 

Daily Top Performer — Movement Labs (MOVE)

The S&P 500 rose 0.92%, rebounding ahead of the Fed’s rate decision. Gold climbed 0.8% to $2,762.02 as tariff uncertainties boosted safe-haven demand. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.32%, with Bitcoin and Ether dropping by 0.20% and 3.40%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is MOVE, which surged nearly 17.7% following the launch of Movement Network's Developer Mainnet, paving the way for the Public Beta.

Movement Labs (MOVE), founded in 2023, is a modular blockchain network powered by the Move language, aiming to enhance security, performance, and UX in decentralized networks. Its key products include Movement SDK, the M1 Layer 1 network, and M2, an Ethereum Layer 2 rollup. 

, allowing select developers to deploy apps and access new infrastructure. This phase builds on the Mainnet Beta and will run until mid-February. The next phase, Public Mainnet Beta, will introduce full permissionless app deployment and user onboarding. Movement Network is built for modularity, leveraging Celestia.

 its tokenized U.S. Treasury fund, OUSG, on the XRP Ledger (XRPL) within six months, expanding institutional access to tokenized real-world assets. Backed by BlackRock’s BUIDL fund, OUSG offers 24/7 minting and redemption via Ripple’s RLUSD stablecoin, enhancing liquidity and financial flexibility. The integration leverages XRPL’s institutional-grade infrastructure, compliance tools, and deep financial relationships to bridge DeFi and traditional finance, positioning XRPL as a key hub for tokenized assets.

BTC Spot ETFs saw a net outflow of $11.7 million, with no change in GBTC and all outflows from non-GBTC funds.

" quest is now live on Galxe, offering tasks to earn points that may be useful for a future airdrop. Participants can complete onchain transactions, explore dApps, join social activities, and more. Week 1 is already underway!

Ondo Finance Brings Tokenized U.S. Treasuries to XRP Ledger for Institutional DeFi

Crypto

KYC, or Know Your Customer, is a set of procedures that require financial institutions and crypto exchanges to verify the identity of their customers. But is it beneficial for you as a customer? Learn more here.

In the ever-evolving world of cryptocurrencies, the importance of KYC (Know Your Customer) cannot be overstated. As digital assets gain widespread adoption and regulatory scrutiny increases, implementing robust KYC policies is essential for ensuring secure transactions and compliance with regulations. This blog post will delve into the essentials of KYC in the crypto industry, providing valuable insights into the KYC process for crypto exchanges, navigating regulatory compliance, overcoming KYC challenges, and exploring emerging trends such as 

. Buckle up for an enlightening journey through the complexities of KYC crypto landscape.

 in crypto is critical as it guarantees secure transactions, protects users’ assets and privacy, and thwarts financial crimes. As the cryptocurrency market continues to grow, the need for stringent KYC measures becomes increasingly critical to maintain the integrity of the financial system.

Specifically, KYC in crypto exchanges is designed to protect transactions, safeguard users’ assets and privacy, and comply with regulations. Crypto firms, including exchanges, must undertake the KYC process to assess their customers’ risk profiles and prevent financial crimes. This involves verifying users’ identities to ensure compliance with regulations and maintain a secure financial system.

 in crypto are to inhibit criminals from executing transactions and impede illicit funds from entering the legitimate financial system. Adherence to KYC measures not only benefits transparency and customer trust but also curbs fraudulent activity, enhances market reputation, keeps businesses abreast of legal requirements, diminishes legal and regulatory risks, and contributes to the market’s overall stability and value growth.

Therefore, mastering KYC in crypto turns out to be crucial for businesses and users involved in the digital asset space.

Crypto exchanges must verify identities and undertake the crypto KYC process to guarantee secure financial transactions and comply with regulations. The KYC process for crypto exchanges involves three essential steps: customer onboarding, identity verification, and transaction monitoring. These steps help assess and manage risks associated with users’ financial activities, ultimately ensuring a secure and compliant platform.

Failure to comply with KYC requirements in crypto exchanges may result in significant penalties from regulatory authorities, regardless of the exchange’s geographical location. Hence, gaining knowledge and implementing the KYC process is vital for crypto exchanges to uphold a secure and legitimate financial system.

Customer onboarding in crypto exchanges entails:

By collecting this essential user data, crypto exchanges can better evaluate the risk associated with each client, ensuring that their platform remains secure and compliant with regulatory requirements.

Minimizing user friction during the KYC process is a significant aspect that crypto exchanges need to consider. Tools such as 

, which verifies user identity through checks of 50+ social media networks and messenger apps, can streamline the onboarding process and improve the user experience.

Efficient customer onboarding, a vital step in the KYC process for crypto exchanges, lays the foundation for secure and compliant transactions.

Identity verification in crypto exchanges is a vital component of the KYC process, helping to confirm users’ identities and prevent fraud. Various tools and techniques, such as digital footprint analysis and device fingerprinting, are employed to authenticate users’ identities. By leveraging these advanced methods, crypto exchanges can ensure that only legitimate users gain access to their platforms, reducing the risk of falsification and fraudulent activities.

Some of the most effective tools for identity verification in crypto exchanges include Identity Document Verification, Automated Identity Verification, and KYC Solutions. Digital footprint analysis, for instance, involves gathering and analyzing a user’s online activity and data trails to ascertain their identity and detect potential fraudulent or suspicious behavior. By implementing robust identity verification techniques, crypto exchanges can bolster user trust while maintaining regulatory compliance.

Transaction monitoring is an indispensable aspect of the KYC process for crypto exchanges, helping to identify suspicious activities and maintain compliance with AML laws. A 

 transaction monitoring system assists crypto exchanges and financial institutions in recognizing unusual or questionable activity that necessitates reporting to regulatory authorities, thereby aiding law enforcement in tracing criminals.

Crypto exchanges, such as the popular crypto exchange platforms, can utilize tools provided by companies to monitor and analyze crypto transactions, such as:

to monitor transactions and detect suspicious patterns. By implementing effective transaction monitoring techniques, crypto exchanges can ensure that their platforms remain secure and compliant with AML regulations, ultimately protecting both their businesses and their users.

Navigating Regulatory Compliance in the Crypto Industry

Navigating regulatory compliance in the crypto industry can be challenging due to varying requirements across countries and institutions. With the lack of a unified definition or standardized approach to compliance, verification requirements can be perplexing for both businesses and users. However, maintaining a secure and legitimate financial system requires adherence to KYC standards, which is why kyc compliance is essential.

Crypto exchanges and firms, by keeping abreast of changes in KYC and AML requirements and adapting policies accordingly, can provide a seamless and secure user experience. Crypto businesses need to understand and follow the specific KYC requirements in each country they operate, as non-compliance could lead to severe penalties or even operational suspension.

Overcoming KYC challenges in the crypto industry involves leveraging technology solutions, balancing privacy and security concerns, and adapting to evolving regulations. Each of these approaches contributes to a more seamless and secure user experience, ensuring that crypto exchanges and firms can continue to thrive in the face of regulatory scrutiny.

By employing advanced tools and techniques to streamline the KYC process, crypto exchanges can reduce the risk of falsification and fraud while maintaining user trust and compliance with regulatory requirements. Furthermore, staying up-to-date with changes in KYC and AML regulations is crucial for adapting policies and procedures to ensure a secure and compliant platform.

Technology solutions play a vital role in addressing KYC challenges in the crypto industry. Automated software and blockchain-based ID validation, for instance, can help streamline the KYC process in crypto exchanges, reducing the risk of falsification and improving the user experience.

Notable technology solutions for KYC in crypto exchanges include Onfido, Togggle, and Ondato. These solutions assist crypto exchanges in authenticating user identities and adhering to regulatory requirements, ultimately ensuring a secure and compliant platform for users to conduct their digital asset transactions.

Striking a balance between privacy and security in KYC processes is key to upholding user trust and regulatory compliance. By implementing comprehensive identity verification platforms and prioritizing the safeguarding of customer privacy, crypto exchanges can strike a balance between adhering to KYC requirements and preserving user trust.

Tools such as SEON have been demonstrated to assist with KYC checks and reduce chargebacks caused by illegitimate credit card purchases when utilized by crypto exchanges. By leveraging advanced tools and techniques, crypto exchanges can ensure both privacy and security for their users while maintaining compliance with regulatory requirements.

Adapting to the ever-changing regulations in the crypto industry demands keeping updated on KYC and AML requirements and adjusting policies as needed. As governments and regulatory bodies attempt to make cryptocurrencies more secure and safe, the frequency of these changes can vary depending on the jurisdiction and the particular regulations in place.

Crypto exchanges and firms must remain informed of the latest regulatory advancements to guarantee compliance. By staying up-to-date with evolving regulations and implementing suitable due diligence procedures, crypto exchanges can ensure a secure and compliant platform for users to conduct their digital asset transactions.

Crypto Wallets and KYC: What You Need to Know

 require KYC or not depends on if they are provided by an exchange or operate independently. Exchanges generally require KYC, while independent wallets may not. Understanding the implications of KYC for wallet users is essential for maintaining security and compliance.

The purpose of KYC in crypto wallets is to diminish the association of cryptocurrencies with money laundering and other unlawful activities, as well as enhancing customer transparency and trust. By implementing KYC procedures in crypto wallets, users can enjoy a secure and compliant platform for managing their digital assets.

DeFi, NFTs, and KYC: Emerging Trends and Considerations

Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) are emerging trends in the crypto industry that require careful consideration of regulatory compliance and potential risks associated with non-compliant platforms and transactions.

DeFi aims to revolutionize the traditional financial industry by:

NFTs represent digital or real-world items such as:

They facilitate the ownership and trading of digital assets, providing a novel approach for creators to monetize their work and for collectors to possess unique digital items. NFTs are impacting the way digital assets are owned and exchanged in the crypto industry.

The integration of DeFi and NFTs significantly impacts KYC protocols in the crypto sector by enhancing compliance and identification protocols. As these trends continue to evolve and reshape the crypto landscape, it is crucial for crypto exchanges and firms to remain vigilant and adapt their KYC policies to ensure a secure and compliant environment for users.

Best Practices for Implementing Robust KYC Policies

Implementing robust KYC policies in crypto exchanges involves following best practices, such as using advanced identity verification tools, monitoring transactions, and staying up-to-date with regulatory changes. By adhering to these best practices, crypto exchanges can ensure a secure and compliant platform for users to conduct their digital asset transactions.

A few effective tools for identity verification in crypto exchanges encompass:

By leveraging these advanced tools and techniques, crypto exchanges can strengthen their KYC policies and provide a secure environment for users to manage their crypto assets.

Mastering KYC in the crypto industry is essential for ensuring secure transactions, regulatory compliance, and the protection of users’ assets and privacy. Through the implementation of robust KYC policies, leveraging advanced technology solutions, and adapting to evolving regulations, crypto exchanges and firms can provide a seamless and secure user experience. By staying informed and vigilant in the ever-evolving world of cryptocurrencies, businesses and users alike can navigate the complexities of KYC and enjoy the benefits of a secure and compliant digital asset ecosystem.

KYC stands for Know Your Customer and is a common anti-money laundering procedure carried out by financial institutions when onboarding new customers. It involves the identification and verification of customer's identity.

No KYC means that exchanges do not require customers to provide identity verification information to trade crypto. This is an attractive option for many traders, as there are a few exchanges such as MexC which allow users to trade without providing personal information.

KYC for crypto is a series of steps to verify customer identity and assess financial activities, legally required to be completed quickly and securely.

To KYC your crypto wallet, you must submit personal information such as full name, date of birth, address, social security number and contact information. You must also provide an official supporting document. Additionally, you may need to verify digital identity, biometrics and ID document authenticity in order to secure transactional safety and ensure there is no illegal activity.

What is the primary goal of KYC in crypto exchanges?

The primary goal of KYC in crypto exchanges is to ensure secure financial transactions, comply with regulations, protect users' assets and privacy, and prevent financial crimes.

Why Should You Pay Attention to KYC Before Trading Crypto?

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