XRP Ledger emergency patch closes flaw that could create unfunded XRP

An emergency XRP Ledger release closed a decade-old flaw that could have allowed billions of dollars in unfunded XRP to be created. Crypto security concerns also extended to Ledger’s reseller channel, while a CFTC proposal put event-contract platforms in focus.

Key developments

XRP creation flaw patched

XRP Ledger issued an emergency software release after researchers demonstrated that a payment could create spendable XRP without the sender funding it. The decade-old flaw could have enabled billions of dollars in XRP to be created.

The flaw threatened the integrity of XRP balances used by holders and businesses on the network.

Oct 10 · CoinDesk

Ledger investigates reported thefts

Ledger is investigating devices sold by a Southeast Asian reseller following reports of $86 million in crypto theft. Social posts describe assets drained from Bitcoin, Ethereum and Tron addresses, but device tampering has not been confirmed.

The investigation puts the security of hardware wallets bought through that reseller in question.

Oct 9 · CoinDesk

Event contracts face swaps classification

The US CFTC proposed a formal rule to classify certain event contracts traded on platforms such as Kalshi as swaps subject to its oversight.

The classification could change regulatory obligations for platforms offering those contracts.

Oct 9 · CoinDesk

Hashi prepares bitcoin lending debut

Sui is preparing to launch Hashi, an institutional lending protocol with $500 million in commitments. It allows holders to use bitcoin as collateral without moving it off the Bitcoin network.

Institutional holders would gain a borrowing option that keeps their bitcoin collateral on its native network.

Oct 9 · CoinDesk

Also this week

Listings and usage

• Revolut CEO Storonsky said he is targeting a US primary listing for the company. Bloomberg

• Robinhood Chain’s daily transactions fell more than 40%, from 10.8 million to 6.2 million since mid-September, while Robinhood continued to pay network fees on customer swaps. CoinDesk

Token adoption

• Visa’s survey of 14,250 people found nearly half of APAC consumers open to using stablecoins by 2031, but only 6% of respondents correctly understood how they work. CoinDesk

• The IMF found investors using tokenized stocks for smaller and after-hours trades, while the market remained volatile and illiquid and legal rules and settlement systems lagged behind. CoinDesk

What to watch

• Watch for Hashi’s debut and the availability of bitcoin-backed institutional lending; launch timing is not announced.

• Watch for Ledger’s investigation to establish whether reseller-supplied devices were tampered with; timing is not announced.

• Watch for a decision on the CFTC’s proposed swaps classification for certain event contracts; timing is not announced.