Avalanche Plans $1 Billion AVAX Treasury Firms

Avalanche Foundation is in advanced talks to raise $1 billion through two US deals creating cryptocurrency treasury companies, according to FT. The transactions involve launching one new entity and converting an existing business, with closures expected in September and October.

One deal aims to raise $500 million via private investment in a Nasdaq-listed company led by Hivemind Capital and advised by Anthony Scaramucci. The second involves a Dragonfly Capital-sponsored SPAC, also targeting $500 million, with completion anticipated by October.

Proceeds will be used to purchase AVAX directly from the foundation at discounted prices, securing millions of tokens for both vehicles. The arrangement mirrors recent reverse-merger strategies where publicly traded firms are transformed into digital asset treasury companies.

Avalanche has already attracted BlackRock, Apollo, and Wellington to pilot tokenized funds on its network, strengthening its institutional positioning. Following the treasury news, AVAX jumped more than 10% in 24 hours to $29.11, price data shows.

Polygon Deploys Hard Fork to Fix Finality Bug

Polygon Labs announced it completed a hard fork to resolve a finality bug causing 15-minute transaction delays. Developers confirmed the upgrade patched Bor and Heimdall components, restoring synchronization and eliminating milestone lag on the proof-of-stake chain. Officials reassured users that block production never stopped and Ethereum checkpointing remained fully operational throughout the disruption.

The outage temporarily slowed confirmations, affecting validator coordination and forcing Polygon to expedite the v2.2.11-beta2 release. Heimdall v0.3.1 was deployed in parallel to stabilize consensus processes across the network. POL, Polygon’s native token, briefly fell four percent during the disruption but recovered after confirmation finality was fully restored.

SEC Postpones Decisions on Crypto ETF Applications

The US Securities and Exchange Commission said it delayed decisions on several pending crypto ETF proposals. Filings involved Ethereum staking ETFs from BlackRock, Fidelity, and Franklin Templeton, alongside Solana and XRP funds. Officials said they require additional review time, prolonging uncertainty despite Chairman Paul Atkins’ broader support for digital assets.

Analysts note over ninety crypto ETF applications remain queued for consideration, reflecting institutional demand for diversified crypto exposure. Industry executives argue delays slow market innovation, even as altcoin ETFs gain popularity abroad. Franklin Templeton’s XRP and Solana proposals remain pending, with other issuers including Bitwise, VanEck, and Grayscale still awaiting approvals.

Scroll DAO Halts Governance Amid Leadership Changes

Scroll DAO announced it will temporarily suspend governance operations following leadership resignations and internal restructuring efforts. Delegate Olimpio reported founder Eugene stepped down earlier this week, with the team now working on redesigning governance systems. Officials stressed this pause does not dissolve governance but provides time to establish new frameworks.

Community members expressed concern over pending proposals, including treasury management initiatives, which now lack defined execution timelines. Delegates suggested the process might shift toward more centralized oversight, though no clear communication has been released. The DAO operates alongside the Scroll Foundation, with delegate voting historically guiding decisions through its SCR token.

Data of the Day

Ethena Labs announced it withdrew its proposal to issue Hyperliquid’s USDH stablecoin following validator and community objections. The team acknowledged criticism that it was not a native Hyperliquid project and chose to step aside. Ethena founder Guy Young congratulated Native Markets, praising the community-driven process that enables emerging teams to succeed.

The withdrawal strengthens Native Markets’ position ahead of the September 14 validator vote on USDH issuance rights. Prediction market odds on Polymarket show Native Markets favored with a ninety-two percent probability of winning. Paxos remains the secondary contender, though analysts say its support base appears comparatively limited heading into final voting.

More Breaking News

• Kraken has introduced perpetual contracts for retail investors in select regions, adding stop-loss features and simple UX to democratize derivatives trading.
• The launch of the Dogecoin ETF has reignited debate around speculation, with critics calling it a meme coin milestone lacking fundamental utility.
• Blockchain lender Figure began trading on Nasdaq at a $5.3 billion valuation, following a $787.5 million IPO backed by Goldman Sachs.
• Joseph Lubin, Ethereum co-founder, hinted Linea holders may receive future rewards, despite its token price dropping over 20% since the airdrop.
• Hong Kong's central bank proposed easing capital rules for banks holding crypto, aiming to support blockchain adoption and global competitiveness.
• Coinbase's petition urging UK blockchain innovation surpassed 5,000 signatures, calling for stablecoin frameworks and a dedicated government crypto czar.

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