Welcome to The Protocol, CoinDesk’s weekly roundup of the most important stories in cryptocurrency technological development. I’m Margaux Nijkerk, CoinDesk reporter.
In this number:
- Ethereum Fusaka Upgrade Completes Final Hoodi Test Ahead of Mainnet Launch
- BOB Introduces Bitcoin Vault Settlement Engine to Power BTC-Backed Stablecoin Lending
- Ledger Unveils $179 Nano Gen5, Built for Identity in an AI-Driven World
- Google Claims Quantum Breakthrough Will Reignite Debate Over Bitcoin Ramifications
Network news
FUSAKA GOES LIVE ON HOODI, ETHEREUM MAINNET BELOW: The final dress rehearsal for Ethereum’s upcoming Fusaka upgrade occurred on Tuesday as the blockchain prepares for the mainnet hard-fork activation. The test, which went live around 18:53 UTC on the Hoodi testnet, involved approving a series of code changes aimed at making Ethereum more scalable and profitable. Testnets are replicas of a blockchain’s mainnet and provide developers with a secure environment to test important updates and fix any issues before they go live on the mainnet. Hoodi was the last of three test networks to run a Fusaka simulation, with two other successful test updates on the Holesky and Sepolia networks. Roughly six months after Ethereum’s Pectra upgrade, Fusaka introduces changes designed to reduce costs for developers, users, and institutions running the network. Its centerpiece, PeerDAS, allows validators to verify only segments of data rather than entire “blobs,” alleviating bandwidth demands and reducing expenses for both validators and Layer 2 networks. — Margaux Nijkerk Read more.
BOB INTRODUCES THE VAULT CLEARANCE ENGINE: BOB (“Build on Bitcoin”) unveiled a new framework that allows bitcoin holders to borrow stablecoins against their BTC while keeping them secure on the Bitcoin network. Bitcoin Vault’s settlement engine addresses some persistent challenges in bitcoin lending, such as all-or-nothing settlements and multi-day settlements, founder Alexei Zamyatin told CoinDesk in a Telegram message. A vault, in the context of collateral and loans, is a smart contract that securely locks a user’s cryptocurrency as collateral for a loan. It acts as a trustless escrow, automatically managing the collateral and executing a liquidation (selling the asset) if its value falls too much. Applying this to bitcoin could transform the largest and most secure crypto asset into active collateral, unlocking trillions of BTC liquidity for use in the decentralized finance (DeFi) ecosystem without forcing holders to sell. The new BOB design supports partial liquidation, meaning there is no need to liquidate an entire position if it goes under; Only enough collateral is sold to restore the health of the loan. — Jamie Crawley Read more.
LEDGER REBRANDS WALLETS AND PRODUCT OFFERS: Ledger, the French company known for its crypto hardware wallets, has introduced a radical update to its product line, positioning itself for what it calls a new “era of ownership.” The company introduced Ledger Nano Gen5, a redesigned version of its signature device, along with Ledger Wallet, a reimagined version of its Ledger Live app, and Ledger Enterprise Multisig, a new platform for institutional asset management. The new Nano is designed to be more than a crypto wallet, the firm said. Ledger now calls it a “signer,” positioning the device not only as a place for digital assets but also for digital identity in an AI-driven world. Ledger’s shift from calling its devices “wallets” to “signers” marks an evolution in how the company envisions what it says is the core of security in the coming digital age. The Ledger Nano Gen5 acts as a secure signing device for everything from crypto transactions to smart contracts and identity verification. — Margaux Nijkerk Read more.
GOOGLE OPERATES IN QUANTUM COMPUTING AND THE BITCOIN DEBATE: Google said it achieved a verifiable “quantum advantage” with its Willow chip, completing a calculation that would take classical supercomputers thousands of times longer. The reported breakthrough may reignite a debate in the cryptocurrency community about the possible detrimental effects that quantum computing could have on Bitcoin, whose operation and security rely on cryptographic methods that quantum computing could potentially challenge. The chip reportedly simulated quantum chaos in just two hours by measuring order-out-of-time correlators (OTOCs), a key benchmark for tracking the unpredictable behavior of particles. The researchers say the achievement brings quantum computing closer to practical applications, such as Hamiltonian learning, where quantum machines could help model complex molecular structures beyond the reach of current tools. For the cryptocurrency world, the advance is noteworthy, but not alarming. While quantum computing could one day challenge Bitcoin’s cryptographic underpinnings, most experts say the reality is still some way off. – Jamie Crawley Read more.
In other news
- Western Union (WU) plans to introduce a stablecoin for its payments network of 100 million users, joining the ranks of traditional financial firms leveraging 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 token will be issued by Anchorage Digital, a federally regulated digital asset bank, using the Solana network, a public blockchain designed for fast, low-cost settlements. Kristzian Sandor Read more.
- The traditional world of wealth management and private banking, much of which is tough and twice shy when it comes to investing in cryptocurrencies, is again under increasing pressure to deliver digital assets to wealthy clients, particularly in crypto hotspots like Dubai, Switzerland and Singapore. Swiss software company Avaloq, which serves many private banks and wealth managers, examined high net worth (HNW) investment attitudes in the United Arab Emirates (based on surveys of 3,851 investors and 456 wealth professionals conducted in February/March 2025), and found that while demand for digital assets in that region is unusually high (39% of wealthy clients own cryptocurrencies), only 20% of those investors in cryptocurrencies used a traditional wealth manager. The United Arab Emirates, known for its oil-rich, ultra-high-net-worth family offices and a low-tax hub for expatriate workers, is also quickly becoming one of the world’s most important crypto hubs, and Dubai offers a clear regulatory framework in the form of the Virtual Asset Regulatory Authority (VARA), which has existed since 2022. Today, the children of those ultra-high-net-worth families are educating their elders about cryptocurrencies (e.g., the Trumps). In this context, Avaloq’s report on the United Arab Emirates found that 63% of investors have changed managers or are considering doing so. The reason is partly because their questions about cryptocurrencies are left unanswered, according to the survey. — Ian Allison Read more.
Regulation and policy
- Some of the biggest names in the crypto industry are among those footing the bill for a controversial White House ballroom construction that began in recent days with the leveling of the historic East Wing. But even when Democratic Senator Richard Blumenthal asks them to explain their connection to the project, they mostly avoid the spotlight. CoinDesk asked cryptocurrency companies on Trump’s long list of private sector benefactors to comment on their support and 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 they 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 firm offered in response. — jesse hamilton Read more.
- Prediction market Kalshi has filed a federal lawsuit against the New York State Gaming Commission, arguing that the state’s attempt to close certain event-based contracts violates federal law. In a complaint filed in the Southern District of New York, Kalshi asked the court to prevent New York officials from enforcing state gambling laws that the company claims do not apply to its operations. Kalshi is registered with the Commodity Futures Trading Commission (CFTC) as a designated contract market (DCM), giving it the federal right to quote and settle derivatives linked to real-world events, including sports results, it said in the filing. The dispute centers on Kalshi’s recent sporting event contract offering, which the company self-certified to the CFTC earlier this year. The 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: EthDenver, Denver
- From March 30 to April 30. 2, 2026: EthCC, Cannes
- April 15-16, 2026: Paris Blockchain Week, Paris
- May 5-7, 2026: Consensus, Miami
