Daily Edition · Page 7

THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

MALAYSIA TO LAUNCH THREE STABLECOIN AND TOKENIZED DEPOSIT PILOTS IN 2026

Bank Negara Malaysia's (BNM) Digital Asset Innovation Hub is onboarding three 2026 pilots: a ringgit stablecoin settlement led by Standard Chartered Bank Malaysia and Capital A and two tokenized deposit payment projects led by Maybank and CIMB focused on wholesale domestic and cross-border payments so BNM can assess monetary and financial stability, potentially integrate findings with its wholesale CBDC work, and issue guidance on ringgit stablecoins and tokenized deposits by end-2026.

THE 7 AXES OF PREDICTION MARKETS

There are seven key differentiation axes for prediction markets: product quality, asset variety, capital efficiency, oracles, liquidity provision, regulatory compliance, and strategic positioning. Interesting architectures include yield-bearing collateral implementations and hybrid human/AI oracle systems addressing systemic reliability weaknesses in current resolution mechanisms. Kalshi's US regulatory positioning has enabled embedded distribution through Robinhood and Coinbase, representing a significant competitive moat, while there are emerging choices between horizontal infrastructure plays versus vertically integrated approaches.

THE PROBLEM WITH CRYPTO ISN'T CRYPTO

Crypto's current negative public perception – comparable to post-FTX levels despite pro-crypto political winds – stems from broader economic anxiety rather than industry-specific failures, particularly AI-driven job displacement fears that make any financial speculation messaging toxic to mainstream audiences. Recent controversies, including Trump family token launches, Epstein-Bitcoin conspiracy theories, and prediction market culture wars, have compounded this "vibecession" where technological progress remains invisible beneath negative sentiment. The Coinbase Super Bowl ad backlash exemplifies how crypto messaging fails to resonate even with lighthearted content during periods of general financial anxiety.

PAYMENTS GIANTS BUILD AGENT RAILS; BUT THEY'RE WALLED GARDENS

Visa, Mastercard, OpenAI+Stripe, Google, Amazon, and PayPal have all launched centralized, permissioned agent payment systems for delegated shopping. However, the rails are siloed as they require Visa tokens, Mastercard credentials, and Stripe flows. They work for human checkout and break down for agent-to-agent use cases like paying compute, API access, or realtime data fees. The real unlock is permissionless, programmable machine-to-machine rails.

JOLT: THE ZKVM POWERING ZERO

Jolt is the open-source RISC-V zkVM powering LayerZero's Zero chain, which replaces decades-old PCP-based SNARK approaches with sum-check protocol-based interactive proofs for fundamental efficiency gains. The design allows developers to prove existing programs without code changes or specialized circuits, with each instruction specified in approximately 10 lines of Rust. LayerZero's production implementation (Jolt Pro) achieves 1.61GHz per cell on CUDA GPUs with a roadmap to 4GHz by 2027, with a planned migration to lattice-based cryptography for post-quantum security.

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