🏴 Crypto's Top Villain

Q: Circle's Arc institutional blockchain raised $222M at a $3B FDV with BlackRock and a16z backing, as

Circle's Arc institutional blockchain raised $222M at a $3B FDV with BlackRock and a16z backing, as Circle positions itself to control the full stack behind USDC.

Q: Coinbase prediction markets hit $100M annualized revenue in just two months, while Kalshi reported $

Coinbase prediction markets hit $100M annualized revenue in just two months, while Kalshi reported $1.8B in March Madness trading volume — over 3x its 2024 U.S. election volume.

Q: Hyperliquid's HIP-4 upgrade introduced expiry-based prediction market contracts, while Kraken's $550

Hyperliquid's HIP-4 upgrade introduced expiry-based prediction market contracts, while Kraken's $550M bid for Bitnomial could unlock compliant U.S. prediction market access.

Bankless·Monday, May 11, 2026·7 min read

Crypto/Web3 Finance DeFi

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AI Summary

Bankless covers North Korea's increasingly sophisticated crypto hacking operations and questions DeFi's ability to protect itself. The newsletter also highlights Circle's $222M Arc institutional blockchain raise backed by BlackRock and a16z, and analyzes how crypto exchanges like Coinbase, Robinhood, Gemini, and Kraken are rapidly expanding into prediction markets as a revenue diversification strategy during a bear market.

Key Facts

✓Circle's Arc institutional blockchain raised $222M at a $3B FDV with BlackRock and a16z backing, as Circle positions itself to control the full stack behind USDC.

✓Coinbase prediction markets hit $100M annualized revenue in just two months, while Kalshi reported $1.8B in March Madness trading volume — over 3x its 2024 U.S. election volume.

✓Hyperliquid's HIP-4 upgrade introduced expiry-based prediction market contracts, while Kraken's $550M bid for Bitnomial could unlock compliant U.S. prediction market access.

Author Takes

BearishBankless

Prediction market combo contracts

Kalshi's exotic combo contracts, while driving one-third of platform volume, are routed through an opaque RFQ system that fundamentally disadvantages retail traders by letting institutional market makers set prices.

BullishBankless

Prediction markets as exchange revenue diversification

Prediction markets are emerging as one of the most powerful revenue diversification tools for crypto exchanges struggling in a bear market, with adoption accelerating rapidly across Coinbase, Robinhood, Gemini, Kraken, and Binance.

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