Welcome to The Protocol, CoinDesk’s weekly wrap of the most important stories in cryptocurrency tech developments. I’m Margaux Nijkerk, reporter for CoinDesk.
in this issue:
- Ethereum’s Fusaaka upgrade completes final hoodie testing ahead of mainnet launch
- BoB Unveils Bitcoin Vault Liquidation Engine to Offer BTC-Backed Stablecoin Lending
- Ledger unveils $179 Nano Gen5, built for identity in an AI-powered world
- Google claims quantum breakthrough to reignite debate over Bitcoin impact
network news
Fusaaka Hoody goes live on Ethereum mainnet Next: The final dress rehearsal for Ethereum’s upcoming Fusaika upgrade took place on Tuesday as the blockchain mainnet prepares for hard-fork activation. The test, which went live on the Hudi testnet around 18:53 UTC, involved passing a series of code changes to make Ethereum more scalable and cost-efficient. Testnets are replicas of the blockchain’s main network, providing a secure environment for developers to test major upgrades and fix any issues before they go live on the mainnet. Hudi was the last of three testnets to run through Fusaaka’s simulations, along with two other successful test upgrades on the Holski and Sepolia networks. Nearly six months after Ethereum’s Pectra upgrade, Fusaaka has introduced changes designed to cut costs for developers, users, and institutions running the network. Its centerpiece, PeerDAS, lets validators check only segments of data rather than full “blobs,” easing bandwidth demands and reducing expenses for both validators and the layer-2 network. , margaux nijkerk Read more.
Bob unveils Vault Liquidation Engine: BOB (“Build on Bitcoin”) unveiled a new framework that enables Bitcoin holders to borrow stablecoins in exchange for their BTC while keeping them secure on the Bitcoin network. The Bitcoin Vault liquidation engine addresses some persistent challenges in Bitcoin lending, such as all-or-nothing liquidations and multiday settlements, founder Alexey Zamyatin told CoinDesk in a Telegram message. A vault, in the context of collateral and lending, is a smart contract that securely locks a user’s cryptocurrency as collateral for a loan. It acts as a trusted escrow, automatically managing collateral and executing liquidation (selling the asset) if its value drops too low. Applying this to Bitcoin could turn the safest and largest crypto asset into active collateral, unlocking trillions in BTC liquidity for use in the decentralized finance (DeFi) ecosystem without forcing holders to sell. The new design of BOB supports partial liquidation, meaning that if the entire position goes underwater it does not need to be liquidated; Only enough collateral is sold to restore loan health. , jamie crawley Read more.
Ledger Rebranded Wallet and Product Offering: Ledger, the French firm known for its crypto hardware wallets, has introduced a comprehensive update to its product line, preparing itself for a new “era of ownership.” The company unveiled the Ledger Nano Gen5, a redesigned version of its Signature device, as well as Ledger Wallet, a new version of its Ledger Live app, and Ledger Enterprise MultiSig, a new platform for institutional asset management. The company said that the new Nano has been designed to be more than a crypto wallet. Ledger now calls it a “signer,” positioning the device not only for digital assets but also as a locus of digital identity in an AI-driven world. Ledger’s shift in calling its devices from “wallets” to “signers” reflects an evolution in how the company envisions what it says will be at the core of security in the next digital age. The Ledger Nano Gen5 acts as a secure signature device for everything from crypto transactions to smart contracts and identity verification. , margaux nijkerk Read more.
Google weighs in on quantum computing and Bitcoin debate: Google said it achieved a verifiable “quantum advantage” with its Willow chip, completing a calculation that would have taken classical supercomputers thousands of times longer. The reported success could reignite a debate in the cryptocurrency community over the potentially harmful effects of quantum computing on Bitcoin, whose operation and security are built on cryptographic methods that quantum computing could potentially challenge. The chip reportedly simulated quantum chaos in just two hours by measuring out-of-time-order correlators (OTOCs), a key benchmark for tracking the unpredictable behavior of particles. The researchers say the achievement moves quantum computing closer to practical applications such as Hamiltonian learning, where quantum machines could help model complex molecular structures beyond the reach of today’s tools. For the crypto world, the success is notable, but not worrisome. While quantum computing could one day challenge Bitcoin’s cryptographic foundation, most experts say that reality is still a long way off. , jamie crawley Read more.
in other news
- Western Union (WU) is planning to introduce a stablecoin to its 100 million-user payments network, joining the ranks of traditional finance firms using blockchain rails to power global transfers. The company, known for its cross-border payments and cash network between retail customers, plans to launch the US Dollar Payment Token (USDPT) in the first half of next year, according to a press release. The tokens will be issued by Anchorage Digital, a federally regulated digital asset bank, using the Solana network, a public blockchain designed for low-cost, fast settlements.— Christian Sandor Read more.
- The traditional wealth management and private banking worlds, most of which are staunch and twice as shy when it comes to cryptocurrency investments, are under increasing pressure again to offer digital assets to wealthy clients, especially in crypto hotspots like Dubai, Switzerland and Singapore. Swiss software firm Avaloq, which services a number of private banks and wealth managers, examined high net worth (HNW) investment approaches in the UAE (based on a survey of 3,851 investors and 456 wealth professionals conducted in February/March 2025), and found that while demand for digital assets is unusually high in that region (39% of wealthy clients hold crypto), only 20% of those crypto investors used a traditional wealth manager. Did it. The UAE, known for its oil-rich, ultra-high net worth family offices and low-tax haven for expatriate workers, is fast becoming one of the world’s most popular crypto hubs, offering a clear regulatory framework in the form of the Dubai Virtual Assets Regulatory Authority (VARA), which is in place from 2022. These days, children from those ultra-high net worth families are educating their elders about crypto – for example, the Trumps. Against this backdrop, Avalok’s UAE Snapshot found that 63% of investors have switched managers or are considering doing so. According to the survey, this is partly because their questions about crypto remain unanswered. , Ian Allison Read more.
Regulatory and Policy
- Some of the most prominent names in the crypto industry are among those footing the bill for the controversial White House Ballroom construction, which began with the leveling of the historic East Wing in recent days. But even though Democratic Senator Richard Blumenthal is asking him to clarify his connection to the project, he is mostly avoiding the spotlight. CoinDesk asked the crypto companies on Trump’s long list of private sector beneficiaries for comment on their support and their intentions to respond to the senator’s investigation, but only a Coinbase spokesperson responded. Ripple, Tether and Gemini, whose co-founders Tyler and Cameron Winklevoss were donors, remained silent, although all received letters from Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations. “Coinbase is pleased to support the Trust for the National Mall, a 501(c)(3) partner of the National Park Service, and looks forward to responding to the Committee’s inquiries,” the company said in a response. , jesse hamilton Read more.
- Prediction market Kalshi filed a federal lawsuit against the New York State Gaming Commission, arguing that the state’s effort to shut down certain event-based contracts violates federal law. In a complaint filed in the Southern District of New York, Kalshi asked the court to block New York officials from enforcing state gambling laws, which the company said do not apply to its operations. The filing said Kalashi is registered with the Commodity Futures Trading Commission (CFTC) as a designated contract market (DCM), which gives it federal authority to list and clear derivatives tied to real-world events, including sports outcomes. The dispute centers on Kalshi’s recent offering of sports-event contracts, which the company self-certified with the CFTC earlier this year. Contracts allow users to take opposing financial positions on whether a team will win or advance in a tournament, among other outcomes. , francisco rodrigues Read more.
calendar
- November 17-22: DevConnect, Buenos Aires
- December 11-13: Solana Breakpoint, Abu Dhabi
- February 10-12, 2026: Consensus, Hong Kong
- February 17-21, 2026: ATHDenver, Denver
- March 30-April. 2, 2026: ATHCC, Cannes
- April 15-16, 2026: Paris Blockchain Week, Paris
- May 5-7, 2026: Consensus, Miami