Bank of England Selects Chainlink to Test Atomic Settlement With Tokenized Assets
The Bank of England (BoE) has selected blockchain oracle provider Chainlink to participate in a new pilot program focused on testing atomic settlement for tokenized assets, marking a concrete step in the central bank’s push to modernize core financial market infrastructure. The move places one of the UK’s most important financial institutions alongside established Web3 infrastructure providers as it explores how distributed ledger technology could support future wholesale payments and securities settlement. While the BoE has spent years researching distributed ledger technology, this initiative signals a shift from conceptual work toward hands-on experimentation. Testing Synchronized Settlement in Central Bank Money Chainlink’s participation forms part of the Bank of England’s newly launched Synchronisation Lab, an industry experimentation initiative designed to test how tokenized assets could be settled using synchronized, or atomic, settlement in British pounds sterling. The work ties directly into the BoE’s ongoing upgrade of its real-time gross settlement system, with testing linked to the next-generation RTGS core ledger, known as RT2. According to the central bank, the lab will allow selected participants to test delivery-versus-payment (DvP) and payment-versus-payment (PvP) transactions between RT2 and external distributed-ledger platforms in a controlled, non-live environment. No real money will be used during the experiments. “The Synchronisation Lab initiative will allow 18 selected companies to test delivery-versus-payment and payment-versus-payment settlement between the BoE’s next-generation RTGS core ledger, known as RT2, and external distributed-ledger platforms, in a non-live environment without using real money,” the Bank of England said in a statement. The six-month pilot is scheduled to begin in spring 2026 and is expected to play a role in shaping whether the BoE eventually introduces a live synchronization capability for its RTGS system. Why Atomic Settlement Matters Atomic settlement refers to a mechanism where the transfer of an asset and the corresponding payment occur simultaneously. In traditional financial markets, settlement often takes place over several days, creating counterparty risk and tying up capital in the process. By contrast, synchronized settlement aims to remove these inefficiencies by ensuring that transactions either complete in full or not at all. For tokenized assets—such as digital representations of bonds, equities, or funds—atomic settlement is seen as one of the most practical benefits of using blockchain-based infrastructure. The Bank of England’s pilot will assess whether tokenized securities can be exchanged against central bank money in a single, coordinated transaction without undermining the resilience or oversight expected of critical market infrastructure. If proven viable, the approach could shorten settlement times, reduce operational complexity, and improve liquidity conditions across wholesale markets. Chainlink’s Role in the Pilot Among the 18 participants selected for the Synchronization Lab, Chainlink stands out as one of the key Web3 infrastructure providers. Alongside UAC Labs, Chainlink will focus on decentralized approaches to coordinating synchronized settlement between central bank money and assets issued on distributed-ledger platforms. Chainlink is widely known for its oracle technology, which enables smart contracts to securely interact with external data and systems. In the context of the BoE pilot, its role is expected to center on interoperability—ensuring that different ledgers and systems can communicate reliably during atomic settlement processes. Analysts note that central banks place a premium on reliability, security, and transparency when evaluating new technologies. Chainlink’s growing track record in institutional and enterprise-focused blockchain initiatives likely contributed to its selection. A Broad Mix of Market Participants The Synchronisation Lab brings together a diverse group of participants, including banks, fintech firms, market infrastructure providers, and decentralized-technology companies. Firms such as Ctrl Alt and Monee will test DvP settlement for tokenized gilts and other securities, while Tokenovate and Atumly will explore conditional margin payments and digital-money issuance and redemption workflows coordinated with RTGS settlement. Traditional financial infrastructure providers are also involved. Swift and the London Stock Exchange Group (LSEG) are among the participants, highlighting the BoE’s intention to test interoperability across both legacy and emerging systems. At the conclusion of the program, participants are expected to present their findings, which the central bank will use to refine the design of its RTGS synchronization capability. Part of a Global Central Bank Trend The Bank of England’s initiative comes amid a wider wave of experimentation by central banks around the world. In recent months, the Federal Reserve Bank of New York and the Bank for International Settlements published findings from Project Pine, examining how smart contracts could support monetary policy in tokenized financial systems. In Asia, the Monetary Authority of Singapore launched Project BLOOM to explore settlement infrastructure for tokenized bank liabilities and regulated stablecoins. Meanwhile, central banks in Australia, the United Arab Emirates, and China have advanced their own pilots involving wholesale CBDCs, stablecoins, and cross-border settlement platforms. China-led mBridge reported earlier this year that it had processed $55 billion in cross-border CBDC transactions, underscoring the scale at which these experiments are now operating. Balancing Innovation and Stability Despite the growing momentum, the Bank of England has consistently emphasized that financial stability remains its primary concern. Any future adoption of blockchain-based settlement systems will need to meet strict standards for governance, resilience, and security. Pilot programs like the Synchronisation Lab allow policymakers to test new approaches without exposing the financial system to undue risk. For market participants and blockchain firms alike, the selection of Chainlink represents further evidence that public institutions are increasingly willing to engage with established Web3 infrastructure as they map out the future of financial market plumbing. While widespread implementation is still some distance away, the pilot places the UK firmly among the leading jurisdictions experimenting with tokenized settlement at the level of central bank money.
FinChain, Backed by Fosun Wealth, Launches FUSD on Avalanche, an RWA-backed Stablecoin Offering Native Yield
FinChain, the blockchain finance platform under Fosun Wealth Holdings, has launched FUSD, a yield-bearing stablecoin backed by real-world financial assets, with Avalanche selected as its primary launch network. Announced in Hong Kong on February 10, 2026, the move places Avalanche at the center of a new push to bring regulated, institutional-grade capital from Asia onto public blockchains. FUSD is positioned as Asia’s first yield-bearing real-world asset (RWA) stable token designed specifically for institutional use. Unlike conventional stablecoins that hold idle reserves, FUSD is backed by compliant, income-generating instruments such as money market funds and government-linked assets, allowing holders to earn native yield while retaining full liquidity. The token is issued through Fosun Wealth’s Web3 platform and targets financial institutions, crypto-native firms, family offices, private equity funds, and pension managers that require regulatory clarity, transparency, and fast settlement. Key Takeaways A Stablecoin Designed to Pay Yield FUSD’s underlying reserves include high-liquidity money market funds from established asset managers such as ChinaAMC and Taikang Asset Management (Hong Kong). By passing through returns generated by these instruments, FUSD is structured to function as a cash-management tool rather than a passive store of value. This approach allows institutions to deploy capital on-chain without forgoing yield, while still using FUSD across decentralized finance markets for lending, trading, and collateral purposes. The design also supports multi-chain interoperability, positioning FUSD as a portable liquidity instrument rather than one confined to a single ecosystem. Speaking on the launch, FinChain CEO Zhao Chen framed FUSD as a bridge between traditional finance and on-chain markets: “FUSD aims to serve as a bridge connecting Web2 standardized financial assets with the Web3 crypto-financial world. The launch of FUSD will provide public blockchains, exchanges, and asset managers with an unprecedented yield-bearing stable token.” Why Avalanche Was Chosen FinChain selected Avalanche’s C-Chain as FUSD’s primary liquidity hub, citing its performance, compliance tooling, and suitability for regulated products. Avalanche offers sub-second transaction finality, enabling near-instant settlement cycles that are critical for professional treasury and liquidity operations. Beyond speed, Avalanche’s architecture supports permissioning and compliance features that can be adapted to different regulatory environments. This flexibility is particularly relevant for Asian markets, where cross-border financial products must operate under varying legal frameworks. The network’s established DeFi liquidity also allows FUSD to integrate directly into existing on-chain markets, giving the stablecoin immediate utility rather than limiting it to custody or settlement use cases. “Avalanche has become preferred infrastructure for global financial institutions,” said Jacky Kong, Head of Ava Labs Hong Kong. Commenting on the partnership, he added: “Through FUSD, we will provide real financial assets in Asia with broader liquidity and collaboration opportunities within the Avalanche ecosystem and across global financial markets. This initiative enables more traditional financial assets to seamlessly enter the blockchain world.” Building Institutional RWA Rails in Asia The FUSD launch forms part of a broader strategic initiative by Fosun Wealth Holdings to scale institutional-grade RWAs on-chain. FinChain plans to deploy its wider stack, including the FinCoin Protocol, on Avalanche to support end-to-end issuance, trading, and collateralization of tokenized financial assets. On February 10, FinChain hosted the “2026 Asia Crypto Finance High-Level Closed-Door Forum” in Hong Kong, where the initiative with Avalanche was formally established. The company said the collaboration is intended to unlock tens of billions of dollars from traditional financial channels by standardizing how regulated assets are represented and moved on-chain. FinChain is also focusing on compliant cross-chain connectivity, with FUSD positioned as a foundational anchor asset for verifiable total value locked across multiple blockchain networks. Avalanche’s Growing Institutional Footprint Avalanche has already attracted significant institutional activity, hosting over $1.2 billion in on-chain total value locked tied to RWAs. Existing deployments include tokenized products such as BlackRock’s BUIDL fund and Apollo’s ACRED, involving institutions like JPMorgan, Citi, and BlackRock. The addition of FUSD strengthens Avalanche’s position as infrastructure for regulated on-chain finance, particularly in Asia. With initiatives already underway in markets such as Japan and South Korea, the Hong Kong launch further anchors Avalanche’s role in the region’s institutional tokenization efforts. As institutional demand for tokenized finance accelerates, the FinChain-Avalanche collaboration signals a shift toward stablecoins that do more than maintain a peg. By combining yield-bearing real-world assets with public blockchain settlement, FUSD represents a new category of regulated, income-generating on-chain liquidity tailored for professional capital.
Sam Bankman-Fried Has Filed for a New Trial on FTX Fraud Charges in the Southern District of New York
Sam Bankman-Fried, the disgraced co-founder and former CEO of collapsed crypto exchange FTX, has filed a motion seeking a new criminal trial in the Southern District of New York, mounting a fresh legal challenge while already serving a 25-year federal prison sentence for fraud and conspiracy. The motion, submitted under Rule 33 of the Federal Rules of Criminal Procedure, was filed pro se, meaning Bankman-Fried prepared it himself from prison. Although dated February 5, the filing was entered on the Manhattan federal court docket days later. The request runs parallel to—and is legally separate from—the ongoing appeal before the U.S. Court of Appeals for the Second Circuit. According to the filing, Bankman-Fried argues that newly available testimony from former FTX executives could undermine the government’s core narrative that he intentionally defrauded customers and that the exchange was insolvent prior to its dramatic collapse in late 2022. Key Takeaways Claiming New Witnesses Could Change the Outcome Central to Bankman-Fried’s request is the assertion that two former senior FTX figures—Daniel Chapsky and Ryan Salame—did not testify at trial but could now offer evidence contradicting the prosecution’s portrayal of FTX’s financial condition. In a sworn declaration attached to the motion, Chapsky, the former head of data science at FTX.US, said he could have challenged government testimony related to internal balance sheets and transfers between FTX and its affiliated hedge fund, Alameda Research. He stated that legal counsel advised him against testifying due to fears of government retaliation and intense public scrutiny. Salame, a former FTX executive who later pleaded guilty in a related case and received a seven-and-a-half-year sentence, was also cited by Bankman-Fried as someone pressured by prosecutors. Bankman-Fried claimed the government leveraged threats against Salame’s pregnant fiancée to secure cooperation—an allegation prosecutors have denied. Bankman-Fried further accused Nishad Singh, FTX’s former head of engineering and a key prosecution witness, of altering his testimony under government pressure. Singh pleaded guilty to fraud charges but avoided prison due to extensive cooperation. Allegations of Judicial Bias In addition to seeking a retrial, Bankman-Fried formally requested that U.S. District Judge Lewis Kaplan be removed from considering the motion. He alleged that Kaplan demonstrated “manifest prejudice” during the original proceedings, citing evidentiary rulings that limited the defense’s ability to argue that customer funds could ultimately be repaid. During the trial, Kaplan barred the defense from presenting certain evidence related to legal advice Bankman-Fried claimed to have received while running FTX. The judge also conducted an unusual pre-testimony hearing in which Bankman-Fried was questioned for hours outside the presence of the jury to determine what he would be allowed to say on the stand. A jury ultimately convicted Bankman-Fried in November 2023 on seven counts of fraud and conspiracy, agreeing with prosecutors that billions of dollars in customer funds were improperly funneled from FTX to Alameda Research to cover risky trading losses. Bankruptcy Dispute and Public Claims Beyond the courtroom, Bankman-Fried has continued to contest the circumstances surrounding FTX’s bankruptcy. In recent posts on X, he claimed he never authorized the Chapter 11 filing and argued that external lawyers forced the company into bankruptcy despite internal data showing solvency, particularly at FTX.US. “The money was always there, and FTX was always solvent,” Bankman-Fried wrote in one post, alleging that lawyers misrepresented the company’s financial state and seized control for their own benefit. Court records from early 2023 confirm that Bankman-Fried objected to including FTX.US in the bankruptcy filing, arguing that its wallets showed no customer deficit at the time. Bankruptcy attorneys, however, maintained that consolidated filings were necessary and that internal controls across the group were deeply flawed. Appeal Pending, Pardon Uncertain Bankman-Fried’s formal appeal—argued before a three-judge Second Circuit panel in late 2025—remains undecided. Judges at the hearing appeared skeptical of claims that trial rulings alone warranted overturning the verdict. His mother, Stanford Law Professor Emerita Barbara Fried, submitted the retrial motion on his behalf due to his incarceration, stating that her son wanted the brief written “in his own voice.” She also acknowledged the difficulty of coordinating legal strategy from prison. Separately, Bankman-Fried and his family have explored the possibility of a presidential pardon. While President Donald Trump has issued pardons to several high-profile crypto executives, he has publicly stated that he has no intention of pardoning Bankman-Fried. For now, the former crypto billionaire remains behind bars, pursuing multiple legal paths in a last-ditch effort to undo one of the most consequential fraud convictions in the history of digital assets.