Welcome to The Protocol, CoinDesk’s weekly wrap of crucial tales in cryptocurrency tech growth. I’m Margaux Nijkerk, a reporter at CoinDesk.

On this situation:

• Ethereum’s Fusaka Improve Completes Closing Hoodi Take a look at Forward of Mainnet Launch
• BOB Unveils Bitcoin Vault Liquidation Engine to Energy BTC-Backed Stablecoin Lending
• Ledger Unveils $179 Nano Gen5, Constructed for Identification in an AI-Pushed World
• Google Claims Quantum Breakthrough to Reignite Bitcoin Ramifications Debate

Community Information

FUSAKA GOES LIVE ON HOODI, ETHEREUM MAINNET NEXT: The ultimate gown rehearsal for Ethereum’s forthcoming Fusaka improve occurred on Tuesday because the blockchain prepares for the mainnet hard-fork activation. The check, which went dwell round 18:53 UTC on the Hoodi testnet, concerned passing a collection of code modifications meant to make Ethereum extra scalable and cost-efficient. Testnets are replicas of a blockchain’s primary community, giving builders a protected surroundings to check main upgrades and repair any points earlier than they go dwell on mainnet. Hoodi was the final of three testnets to run by means of a simulation of Fusaka, with two different profitable check upgrades on the Holesky and Sepolia networks. Coming roughly six months after Ethereum’s Pectra improve, Fusaka introduces modifications designed to chop prices for builders, customers and establishments working on the community. Its centerpiece, PeerDAS, lets validators test solely segments of information as a substitute of full “blobs,” easing bandwidth calls for and reducing bills for each validators and layer-2 networks. — Margaux Nijkerk Learn extra.

BOB UNVEILS VAULT LIQUIDATION ENGINE: BOB (“Construct on Bitcoin”) unveiled a brand new framework enabling bitcoin holders to borrow stablecoins towards their BTC whereas holding it secured on the Bitcoin community. The Bitcoin Vault Liquidation Engine addresses some persistent challenges in bitcoin lending, resembling all-or-nothing liquidations and multiday settlements, founder Alexei Zamyatin informed CoinDesk in a Telegram message. A vault, within the context of collateral and lending, is a great contract that securely locks a person’s cryptocurrency as collateral for a mortgage. It acts as a trustless escrow, mechanically managing the collateral and executing a liquidation (promoting the asset) if its worth falls too low. Making use of this to bitcoin might rework probably the most safe and largest crypto asset into lively collateral, unlocking trillions in BTC liquidity to be used within the decentralized finance (DeFi) ecosystem with out forcing holders to promote. BOB’s new design helps partial liquidation, which means a whole place doesn’t have to be liquidated if it goes underwater; solely sufficient collateral to revive mortgage well being is offered. — Jamie Crawley Learn extra.

LEDGER REBRANDS WALLET AND PRODUCT OFFERINGS: Ledger, the French agency identified for its crypto {hardware} wallets, launched a sweeping replace to its product line, positioning itself for what it calls a brand new “period of possession.” The corporate unveiled the Ledger Nano Gen5, a redesigned model of its signature machine, together with Ledger Pockets, a reimagined model of its Ledger Stay app, and Ledger Enterprise Multisig, a brand new platform for institutional asset administration. The brand new Nano is designed to be greater than a crypto pockets, the agency stated. Ledger now calls it a “signer,” positioning the machine as not solely a venue for digital belongings but additionally of digital id in an AI-driven world. Ledger’s shift from calling its units “wallets” to “signers” marks an evolution in how the corporate envisions what it says is on the core of safety within the subsequent digital age. The Ledger Nano Gen5 acts as a safe signing machine for all the things from crypto transactions to sensible contracts and id verification. — Margaux Nijkerk Learn extra.

GOOGLE WEIGHS IN ON QUANTUM COMPUTING AND BITCOIN DEBATE: Google stated it achieved a verifiable “quantum benefit” with its Willow chip, finishing a calculation that will take classical supercomputers 1000’s of instances longer. The reported breakthrough could reignite a debate within the cryptocurrency neighborhood over the doable detrimental results that quantum computing might have on Bitcoin, whose operation and safety is constructed on cryptographic strategies that quantum computing might doubtlessly problem. The chip reportedly simulated quantum chaos in simply two hours by measuring Out-of-Time-Order Correlators (OTOCs), a key benchmark for monitoring the unpredictable conduct of particles. Researchers say the achievement strikes quantum computing nearer to sensible functions, resembling Hamiltonian studying, the place quantum machines might assist mannequin advanced molecular constructions past the attain of immediately’s instruments. For the crypto world, the breakthrough is noteworthy, however not alarming. Whereas quantum computing might at some point problem Bitcoin’s cryptographic foundations, most specialists say that actuality stays far off. – Jamie Crawley Learn extra.

In Different Information

• Western Union (WU) is planning to introduce a stablecoin for its 100 million-user fee community, becoming a member of the ranks of conventional finance corporations tapping blockchain rails to energy world transfers. The corporate, identified for cross-border funds and money community amongst retail prospects, plans to roll out the U.S. Greenback Cost Token (USDPT) within the first half of subsequent yr, based on a press launch. The token shall be issued by Anchorage Digital, a federally regulated digital asset financial institution, utilizing the Solana community, a public blockchain designed for low-cost, quick settlements.— Kristzian Sandor Learn extra.
• The standard wealth administration and personal banking world, a lot of which is hard-bitten and twice shy on the subject of cryptocurrency investing, is underneath mounting stress once more to ship digital belongings to rich shoppers, notably in crypto hotspots like Dubai, Switzerland and Singapore. Swiss software program agency Avaloq, which serves many non-public banks and wealth managers, examined excessive internet price (HNW) investing attitudes within the UAE (based mostly on surveys of three,851 buyers and 456 wealth professionals carried out in February/March 2025), and located that whereas demand for digital belongings in that area is unusually excessive (39% of rich shoppers maintain crypto), solely 20% of these crypto buyers used a standard wealth supervisor. The UAE, identified for its oil-rich, ultra-high internet price household workplaces and a low tax heart for expat employees, can be shortly turning into one of many world’s hottest crypto hubs, with Dubai providing a transparent regulatory framework within the type of the Digital Belongings Regulatory Authority (VARA), which has been in place since 2022. Lately, the children of these ultra-high internet price households are educating their elders about crypto – for instance, the Trumps. In opposition to this backdrop, Avaloq’s UAE snapshot discovered that 63% of buyers have switched managers or are contemplating doing so. The reason being partly as a result of their questions on crypto are going unanswered, based on the survey. — Ian Allison Learn extra.

Regulatory and Coverage

• Among the most distinguished names within the crypto business are amongst these footing the invoice for a controversial White Home ballroom building that started in latest days with the leveling of the historic East Wing. However whilst Democratic Senator Richard Blumenthal is asking them to elucidate their connection to the challenge, they’re principally avoiding the highlight. CoinDesk requested crypto corporations on the lengthy listing of Trump’s private-sector benefactors to touch upon their assist and their intentions to reply to the senator’s probe, however solely a spokesperson for Coinbase responded. Ripple, Tether and Gemini, whose co-founders Tyler and Cameron Winklevoss have been donors, remained silent, although all obtained letters from Blumenthal, the rating Democrat on the Senate’s Everlasting Subcommittee on Investigations. “Coinbase is happy to assist the Belief for the Nationwide Mall, a 501(c)(3) companion of the Nationwide Park Service, and appears ahead to answering the committee’s inquiries,” the agency supplied as a response. — Jesse Hamilton Learn extra.
• Prediction market Kalshi filed a federal lawsuit towards the New York State Gaming Fee, arguing that the state’s try to shut down sure event-based contracts violates federal legislation. In a criticism filed within the Southern District of New York, Kalshi requested the courtroom to dam New York officers from implementing state playing legal guidelines that the corporate stated don’t apply to its operations. Kalshi is registered with the Commodity Futures Buying and selling Fee (CFTC) as a chosen contract market (DCM), which supplies it the federal proper to listing and clear derivatives tied to real-world occasions, together with sports activities outcomes, it stated within the submitting. The dispute facilities on Kalshi’s latest providing of sports-event contracts, which the corporate self-certified with the CFTC earlier this yr. The contracts enable customers to take opposing monetary positions on whether or not a group will win or advance in a match, amongst different outcomes. — Francisco Rodrigues Learn extra.

Calendar

• Nov. 17-22: Devconnect, Buenos Aires
• Dec. 11-13: Solana Breakpoint, Abu Dhabi
• Feb. 10-12, 2026: Consensus, Hong Kong
• Feb. 17-21, 2026: EthDenver, Denver
• Mar. 30-Apr. 2, 2026: EthCC, Cannes
• Apr.15-16, 2026: Paris Blockchain Week, Paris
• Might 5-7, 2026: Consensus, Miami