• Its stablecoin, Staked Stream USD (XUSD), has fallen to $0.2975, according to CoinGecko data.
• The depegging followed a $100 million exploit on Balancer, an automated market maker.
• Stream Finance also faced questions about TVL discrepancies with DefiLlama’s figures.

Stream Finance, a decentralised finance (DeFi) platform specialising in yield-generating strategies, has paused all deposits and withdrawals after an external fund manager reported a $93 million loss in its managed assets.

The incident has triggered scrutiny across the DeFi ecosystem, raising questions about risk exposure and transparency among platforms offering high yields through complex strategies.

The Stream Finance team confirmed the loss in an X post on Monday, saying the fund manager disclosed it a day earlier.

The project has since hired lawyers from Perkins Coie to conduct an independent investigation into the matter.

Withdrawals suspended as Stream moves to recover assets

According to Stream Finance, it is currently withdrawing all liquid assets and expects the process to be completed soon.

The team stated that periodic updates will follow as more information becomes available.

While the investigation continues, the platform has suspended withdrawals and stopped processing any pending deposits, effectively freezing user funds until clarity is reached.

Stream Finance’s statement on X read, “We are actively withdrawing all liquid assets and expect this process to be completed in the near term.”

The platform said users would be kept informed through regular updates.

Stream stablecoin XUSD loses peg

Stream Finance operates as a “recursive looping” yield-focused protocol, and it also issues a collateralised stablecoin called Staked Stream USD (XUSD).

Before the team’s public announcement, XUSD had already started to depeg from its $1 target, signalling growing concern among users.

On Sunday, community members noticed that deposits and withdrawals had been paused without prior communication from the team.

As speculation intensified, XUSD slipped below its target range, plunging to as low as $0.51, according to CoinGecko data.

At the time of writing, XUSD is currently priced at $0.2975 and is down by 76.4% in the last 24 hours, marking one of the steepest single-day declines among stablecoins this year.

Omer Goldberg, founder of Labs, posted on X roughly 10 hours before Stream Finance’s official statement that XUSD had begun to depeg “materially below its target range.”

Goldberg linked the event to an over $100 million exploit on Balancer, an automated market maker platform.

The timing between the Balancer exploit and Stream Finance’s reported loss has prompted market observers to draw parallels between liquidity management vulnerabilities and asset exposure risks across DeFi platforms.

TVL discrepancies add to transparency concerns

On Friday, prior to the loss announcement, Stream Finance addressed community concerns regarding discrepancies between its total value locked (TVL) figures displayed on its website and those reported by DefiLlama.

Stream Finance explained on X that DefiLlama excluded recursive looping from its TVL calculations, stating, “DefiLlama has decided that recursive looping is not TVL per their own definitions.

We disagree with this, but to be transparent to users, the website now makes a distinction between user deposits (~$160M) and total assets deployed across strategies (~$520M).”

This clarification highlighted how variations in data methodology can create uncertainty in assessing DeFi protocol exposure.

Analysts have pointed out that mismatched reporting standards across DeFi platforms can obscure the true level of leverage in yield-generation models.

CoinDCX’s head of DeFi Ecosystem Growth, Minal Thurkal, commented that the case underlines the “critical importance of understanding exactly how protocols generate yield and the significant risks involved in complex DeFi strategies.”

She added that projects diverging from recognised metrics like DefiLlama’s TVL calculations can amplify transparency challenges for users and investors alike.

Broader DeFi implications

The Stream Finance incident comes amid growing regulatory attention to DeFi protocols and stablecoin risk management.

Depegging events, such as XUSD’s recent drop, often erode market confidence and prompt liquidity withdrawals across decentralised platforms.

As DeFi continues to expand beyond early adopters, incidents like this emphasise the fragility of complex yield structures and the urgent need for standardised transparency frameworks.

With Stream Finance’s investigation ongoing, the broader ecosystem will be closely monitoring how the project manages asset recovery and user compensation.

The post DeFi platform Stream Finance pauses all activity after revealing $93M loss appeared first on CoinJournal.

• The company will issue 3.5 million STRE shares, each priced at €100 ($115).
• Investors will receive a 10% annual dividend, paid quarterly beginning 31 December.
• Strategy currently holds 641,205 BTC, valued at approximately $47.49 billion.

Strategy, the crypto treasury company known for its methodical accumulation of Bitcoin, has unveiled plans for a euro-denominated perpetual stock under the ticker STRE.

The initial public offering (IPO) signals a refined integration of traditional capital markets with the Bitcoin economy.

Strategy’s latest move extends its long-term model of raising capital through equity and debt to expand its Bitcoin reserves, consolidating its position as the largest corporate holder of the asset.

Euro-denominated IPO targets professional investors

The company plans to issue 3.5 million shares of STRE, each priced at €100 ($115), with a 10% cumulative annual dividend payable quarterly from 31 December.

Proceeds will be used to acquire additional Bitcoin (BTC), currently trading at $104,603, and for general corporate purposes.

Strategy stated that the shares will be available only to qualified investors in the EU and UK, excluding retail participants.

The structure reflects the company’s preference for institutional capital and adherence to regulated financial frameworks while maintaining exposure to digital assets.

Refining the Bitcoin corporate treasury model

Founded by Michael Saylor, Strategy adopted its Bitcoin-first balance sheet model in mid-2020.

The company raises capital through market instruments, converts it into Bitcoin, and holds the cryptocurrency as a strategic reserve.

This approach has made Strategy the largest Bitcoin-holding public company, with 641,205 BTC worth about $47.49 billion.

Earlier in November, it added 397 BTC to its holdings as part of its ongoing acquisition plan.

Saylor’s framework has influenced a wave of similar corporate treasury models, with firms issuing equity or credit to build crypto reserves.

Many now hold Bitcoin and Ether (ETH), trading at $3,502, as balance sheet assets.

Together, these companies have raised billions, indicating a shift in how institutions view cryptocurrencies: not as speculative bets, but as reserve assets with long-term strategic value.

Market competition and acquisition restraint

Analysts have warned that the rapid growth of the crypto treasury sector could lead to consolidation as new entrants compete for investor capital.

Some expect companies to acquire rivals to preserve scale and relevance.

However, Strategy has confirmed it will not pursue mergers or acquisitions, even where they might appear beneficial.

The firm intends to expand organically, focusing on disciplined balance sheet growth and direct communication with investors.

This stance separates Strategy from its peers. While others diversify or seek acquisitions, it remains committed to a singular mission of strengthening its Bitcoin position.

The company’s discipline and transparency have become central to its investor relations strategy.

Major banks back the offering

The IPO will be managed by global financial institutions including Barclays, Morgan Stanley, Moelis, and TD Securities.

Their participation underscores growing confidence among traditional finance players in Bitcoin-linked products.

The STRE stock represents a rare hybrid between fixed income and digital asset exposure.

It offers predictable returns while channelling proceeds into Bitcoin, effectively linking the traditional yield-seeking investor base with the cryptocurrency ecosystem.

As institutional participation in Bitcoin deepens, Strategy’s euro-based IPO may define a new template for corporate finance.

The company’s ability to merge compliance-driven capital markets with a decentralised asset base demonstrates how digital currencies are being absorbed into the core of global finance.

The post Strategy IPO redefines corporate Bitcoin strategy with euro-denominated offering appeared first on CoinJournal.

• The feature applies to more than 150 perpetual futures markets available to European users.
• The exchange operates under MiCA and MiFID II regulations, with oversight from Ireland and Cyprus.
• Kraken’s third-quarter revenue rose by 50% to $648 million following its acquisition of NinjaTrader.

Kraken has expanded its regulated derivatives offering in the European Union, allowing traders to use Bitcoin, Ethereum, and approved stablecoins as collateral for perpetual futures on Kraken Pro.

Announced on 3 November, the move makes Kraken one of the first licensed exchanges in Europe to support crypto-collateralised derivatives under the Markets in Crypto-Assets (MiCA) framework.

The feature strengthens Kraken’s position in Europe’s digital asset market by combining capital efficiency with regulatory compliance.

By allowing clients to post crypto assets instead of converting them into fiat, the exchange provides faster access to liquidity while remaining under strict oversight from European regulators.

Crypto as margin on Kraken Pro

European traders can now use Bitcoin, Ethereum, or select stablecoins as margin across more than 150 perpetual futures markets.

Collateral is converted to USD for liquidation and margin calculations, standardising risk management while maintaining crypto exposure.

Kraken’s operations are covered by its MiCA licence from the Central Bank of Ireland and supervision by the Cyprus Securities and Exchange Commission.

The exchange uses volatility-based margin haircuts to manage exposure to price swings. All custody arrangements comply with the Markets in Financial Instruments Directive II (MiFID II), ensuring full investor protection under European law.

The feature allows traders to access up to 10x leverage using crypto collateral. It reflects Kraken’s ongoing strategy to align its trading products with Europe’s unified digital asset rules ahead of MiCA’s full rollout in 2025.

A shift in EU derivatives

Kraken’s expansion comes at a time when Europe is tightening oversight of crypto products while promoting innovation through consistent regulation.

By offering crypto-collateralised futures under direct supervision, the exchange positions itself at the forefront of compliant derivatives trading in the EU.

The integration benefits institutional and retail traders seeking efficient and legally sound ways to trade leveraged crypto products.

Hedge funds and corporate treasuries can now operate within clear regulatory limits, signalling the increasing maturity of Europe’s digital derivatives market.

This move also strengthens the region’s financial infrastructure. Transparent liquidation procedures and regulated custody standards align digital assets with traditional financial norms, helping reduce risk and improve trust.

As other licensed exchanges follow Kraken’s lead, the EU could become a global hub for compliant digital asset trading.

Growth supports expansion

The announcement follows a strong financial quarter for Kraken. The exchange reported revenue of $648 million in the third quarter, a 50% rise from the previous quarter.

The increase was driven by higher trading volumes and new product integrations following the acquisition of NinjaTrader, a futures and forex trading platform.

This momentum underlines Kraken’s ability to grow while maintaining regulatory standards. By embedding compliance into its strategy, the company is building credibility and scale in an increasingly regulated environment.

As MiCA rules continue to take effect, exchanges that prioritise both innovation and compliance are expected to capture greater institutional interest.

Kraken’s integration of crypto collateral into a regulated derivatives framework demonstrates how digital assets can function securely within Europe’s financial system.

The development marks a shift from speculative trading to a more structured market, where transparency and protection guide participation.

For the European Union, this represents progress toward establishing a regulated, sustainable, and globally competitive digital asset economy.

The post Kraken expands regulated derivatives in Europe with Bitcoin and Ethereum collateral appeared first on CoinJournal.

• The moved assets included StakeWise Staked Ether (OSETH), Wrapped Ether (WETH), and Lido wstETH (wSTETH).
• In September 2023, Balancer suffered a phishing attack that resulted in a loss of about $238,000.
• A separate August exploit drained nearly $1 million after a vulnerability was found in Balancer’s liquidity pools.

A suspected exploit involving nearly $70 million worth of digital assets has once again placed Balancer, one of Ethereum’s leading decentralised exchanges, under scrutiny.

The incident has reignited debate over the security of decentralised finance (DeFi), where transparency and automation often coexist with deep structural vulnerabilities.

It also shows how core DeFi features such as permissionless access, open-source code, and composable smart contracts can quickly turn into liabilities when targeted by skilled attackers.

For Balancer, the breach adds to a growing record of cyber incidents that are reshaping risk perceptions across digital finance and prompting calls for stronger, coordinated defences across the DeFi ecosystem.

$70 million in Ether-linked assets transferred to new wallet

Blockchain records on Etherscan show that $70.9 million in assets were moved from Balancer liquidity pools to a newly created wallet via three transactions.

Data from analytics firm Nansen identified the transferred assets as 6,850 StakeWise Staked Ether (OSETH), 6,590 Wrapped Ether (WETH), and 4,260 Lido wstETH (wSTETH).

On-chain analysts began tracking the wallet’s behaviour, observing similarities to previous DeFi drain patterns.

Blockchain security firm Cyvers reported that up to $84 million in suspicious transactions across multiple chains may be linked to Balancer.

The firm is currently analysing whether the transfers were coordinated through smart-contract vulnerabilities or facilitated by an external exploit exploiting inter-protocol liquidity flows.

History of attacks at Balancer

In September 2023, the protocol’s website was compromised through a domain name system (DNS) hijack that redirected users to a phishing interface.

Hackers executed malicious smart contracts designed to capture private keys and drain funds, resulting in losses of approximately $238,000, according to blockchain investigator ZachXBT.

Just a month earlier, in August, Balancer reported a stablecoin exploit that cost liquidity providers nearly $1 million.

That incident occurred shortly after the team disclosed a “critical vulnerability” affecting certain liquidity pools, which had been partially mitigated but remained exploitable in specific configurations.

The recurrence of incidents within such a short timeframe suggests that DeFi’s open-source nature, while fostering innovation, also provides attackers with an evolving blueprint to target protocol weaknesses.

These breaches demonstrate that security audits alone are insufficient without continuous on-chain monitoring and real-time risk mitigation systems.

DeFi’s security paradox

The Balancer case illustrates a paradox at the heart of decentralised finance.

By removing intermediaries, protocols achieve transparency and autonomy, while also eliminating the possibility of intervention when funds are misappropriated.

Unlike centralised exchanges that can freeze or reverse transactions, DeFi protocols operate on immutable smart contracts.

Once exploited, losses are permanent and typically unrecoverable.

This structural rigidity has drawn criticism from institutional investors who view such vulnerabilities as barriers to large-scale adoption.

In response, some DeFi projects have introduced layered defences such as decentralised insurance pools, advanced audit frameworks, and formal verification of contract code.

However, these measures remain inconsistent across the ecosystem.

Balancer’s repeated security issues may therefore serve as a case study in how liquidity incentives and composability can amplify systemic exposure.

As DeFi protocols become more interconnected through shared token standards and cross-chain bridges, a single compromised smart contract can trigger cascading financial risks across multiple platforms.

The post Balancer’s $70 million breach exposes DeFi’s fragile foundation appeared first on CoinJournal.

• Local banks will offer custody, transfers, and crypto-to-fiat exchange services.
• The bolivar’s sharp depreciation has driven a surge in stablecoin adoption.
• Conexus currently processes nearly 40% of Venezuela’s electronic payments.

Venezuela is preparing to merge its struggling traditional banking system with digital currencies as payment giant Conexus plans to integrate Bitcoin and stablecoins into the national banking infrastructure.

The move, expected to launch in December 2025, marks a significant step in the country’s financial transformation, offering Venezuelans a regulated channel for cryptocurrency use.

With the bolivar’s persistent depreciation and rising adoption of stablecoins, this development could make Venezuela one of the first nations to formally blend fiat and crypto operations under a unified system.

The integration also reflects Venezuela’s long-standing struggle with international sanctions that have limited access to global banking.

By adopting blockchain-based systems, Conexus aims to provide citizens with a more resilient alternative that can facilitate remittances, domestic transfers, and business payments without heavy dependence on foreign intermediaries and unstable local exchange rates.

The initiative also seeks to improve financial inclusion nationwide, making digital transactions more accessible to individuals and businesses across the country.

Conexus aims to bridge banks and blockchain

Conexus, which currently processes nearly 40% of Venezuela’s electronic transactions, is leading this shift by allowing local banks to offer direct crypto services such as custody, transfers, and fiat conversion for Bitcoin and stablecoins.

The integration seeks to make digital currency access seamless for customers within their regular bank accounts, eliminating the need for external wallets or apps.

The new infrastructure will be built on blockchain technology to enhance transparency and transaction security.

According to the company, the system will enable both individuals and businesses to move between digital and traditional currencies safely, reducing reliance on unregulated exchanges.

Growing reliance on stablecoins amid inflation

Years of hyperinflation have eroded confidence in the bolivar, pushing Venezuelans to rely heavily on stablecoins like Tether (USDT) as a store of value and medium of exchange.

From small retailers to freelancers, many now prefer stablecoins to protect earnings from volatility.

Conexus President Rodolfo Gasparri has highlighted that this surge in stablecoin transactions demonstrates a clear public demand for better integration between crypto and banking systems.

The company’s upcoming model aims to formalise this reality by providing regulated access to crypto within Venezuela’s financial framework, allowing citizens to transact and save using digital assets with greater confidence.

Potential blueprint for emerging economies

The Conexus initiative could reshape not only Venezuela’s financial sector but also set an example for other economies facing currency crises.

By offering a direct bridge between fiat and digital assets, the model could help millions gain access to stable, low-cost, and transparent financial services.

Venezuela’s attempt to merge traditional finance with blockchain technology aligns with global trends toward digitalisation of money, particularly in regions where economic instability drives innovation.

If implemented successfully, this system could serve as a prototype for countries in Latin America and beyond, where inflation and limited banking access continue to affect economic stability.

The post Venezuela to integrate Bitcoin and stablecoins into its banking network by December appeared first on CoinJournal.