Blockworks

Phantom has announced the launch of Phantom Cash, a new consumer payments offering that transforms its crypto wallet into a broader money app.



The product <a href="https://x.com/phantom/status/1973035201950617617">allows</a> users to fund balances instantly with a bank or card, buy and sell crypto without fees on stablecoins, pay with Visa through Apple Pay or Google Pay, and send money to peers. The service is underpinned by CASH, a stablecoin issued via Bridge — the infrastructure company Stripe acquired earlier this year.



Phantom Cash marks the <a href="https://stripe.com/blog/all-our-product-updates-from-stripe-tour-new-york">first deployment</a> of Open Issuance, a platform Stripe unveiled at its annual product showcase in New York. Open Issuance allows businesses to launch and manage their own stablecoins with just a few lines of code.



It outsources reserve management to institutions including BlackRock, Fidelity and Superstate. Liquidity is handled by Lead Bank, and stablecoins minted through Open Issuance are interoperable with each other, lowering costs for conversion and settlement.



Phantom’s adoption gives Stripe an early, visible use case for its new infrastructure and highlights its ambition to move stablecoins from niche crypto use into mainstream payments. Stripe executives framed the launch as part of a push into “agentic commerce,” where AI agents transact on behalf of users.



Alongside Phantom, new stablecoins such as mUSD for Metamask and USDH for Hyperliquid will also issue on Open Issuance.



This is a developing story.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Bridge

Phantom unveils Phantom Cash as first stablecoin on Stripe’s Open Issuance

Jack Kubinec

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Phantom has acquired the Solana trading and analytics platform Solsniper, Blockworks has learned exclusively. Phantom declined to disclose the deal terms.



Solsniper is one of a raft of platforms that provide advanced features and tracking tools for memecoin traders. Solsniper’s web app will continue to operate as a standalone platform, and Solsniper’s team, led by co-founder and CEO Max Zhuang, will join Phantom.



While Phantom cut its teeth as a crypto wallet, the acquisition perhaps signals the <a href="https://www.theblock.co/post/335305/phantom-wallet-raises-150-million-at-3-billion-valuation">well-funded</a> platform’s plans to deepen its trading capabilities, especially after Phantom began offering perpetual futures trading <a href="https://blockworks.co/news/phantom-hyperliquid-integration-winners">by way of Hyperliquid</a>.



Solana’s memecoin craze has been lucrative for token creation platforms like pump.fun and Letsbonk, but it has also been quite profitable for the picks and shovels that facilitate the discovery, tracking and trading of those memecoins.



DEX Screener, which offers popular trending token lists, made $2.9 million in the past month just by charging memecoin projects to update their token information, Solana onchain analyst adam_tehc <a href="https://x.com/Adam_Tehc/status/1952281150283808969">noted</a> recently.



Over time, popular trading venues have begun integrating these picks and shovels-like services. Jupiter and pump.fun both offer in-house trading terminals. With the Solsniper acquisition, Phantom may be poised to do the same, although it has not yet made announcements on that front.



“We see a wide variety of experience levels in crypto today, from new folks to professional traders. This acquisition helps Phantom provide more advanced tools that grow with the user’s expertise. Solsniper has done a great job of building a platform, and we’re excited to bring Phantom’s distribution and infrastructure into the product,” Phantom head of corporate development Joe Wadcan said.



Sweetening the deal further, Solsniper also offers a Telegram trading bot, which is a popular product among some memecoin traders.



Picks and shovels may be valuable to trading platforms because value often flows to the venues and platforms where users actually are. This is why memecoin industry watchers tend to be <a href="https://blockworks.co/news/why-owning-the-end-user-is-profitable-lessons-from-axiom-and-google">bullish on Axiom</a>, which is attempting to win end users while staying agnostic to specific networks or platforms.



By acquiring Solsniper, Phantom could take a segment of its users who currently leave the wallet app to go track, trade, or discover memecoins somewhere else and bring them back in-platform.&nbsp;



Phantom’s acquisition plans likely will not end with Solsniper.



“As we build the next evolution of Phantom, we expect to aggressively pursue acquisitions to expand our product surface area and build the leading consumer finance platform,” Phantom co-founder and CEO Brandon Millman said in a blog post.



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Lightspeed Newsletter

Phantom acquires Solana trading terminal Solsniper

Donovan Choy

This is a segment from the 0xResearch newsletter. To read full editions, <a href="https://blockworks.co/newsletter/0xresearch" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Phantom wallet announced yesterday that it was integrating Hyperliquid perps right into its wallet interface.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Introducing: Phantom Perps 👻 ♾️ Go long or short in just a few taps. 100+ markets. Up to 40x leverage. All in your pocket. Powered by <a href="https://twitter.com/HyperliquidX?ref_src=twsrc%5Etfw">@HyperliquidX</a> <a href="https://t.co/YDKjUGBdEn">pic.twitter.com/YDKjUGBdEn</a>&mdash; Phantom (@phantom) <a href="https://twitter.com/phantom/status/1942628993636917311?ref_src=twsrc%5Etfw">July 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



This is <a href="https://x.com/hyperliquidbull/status/1942630523408351446">surprising</a>, mainly because Phantom is Solana’s marquee wallet and far ahead of competing wallets like Solflare or Backpack, with 15 million monthly active users (MAUs).



If Phantom wanted a cut of the perps market, I suppose one would’ve naively expected it to partner up first with a native Solana perps DEX like Drift or <a href="https://x.com/DefiSolar/status/1942657673994068081">Jupiter</a>.



But though Drift or Jupiter might be hometown favorites, Hyperliquid is where the money already is.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcFE4l4Km4H4mpQpTG8JLhnqumZMyAFqEgNLpMaiAKAF0towGfMZANz_aUCNsS6FI74YF77MmZLj-O3C7wY6vq8uxf-plujUo1HLgHr7uG85vviI-iyDQgiyYoxiFVFNDBrA03dvg?key=D8S8VRimuiNq_D7bNzCT1w" alt=""/></figure>



Source: <a href="https://dune.com/uwusanauwu/perps">Dune</a>



So the wallet that onboarded millions to Solana is now shepherding flow to a rival venue, which doesn’t boost Solana fees or TVL at all.



Just this morning, Kraken and Backed announced that xStocks would also be launching on BNB Chain.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Welcome Kraken, Backed and xStocks to the <a href="https://twitter.com/BNBCHAIN?ref_src=twsrc%5Etfw">@BNBChain</a> ecosystem. 🤝<a href="https://t.co/gg2k8SEsgE">https://t.co/gg2k8SEsgE</a>&mdash; CZ 🔶 BNB (@cz_binance) <a href="https://twitter.com/cz_binance/status/1942933592541110398?ref_src=twsrc%5Etfw">July 9, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Soon, eligible Kraken customers will be able to deposit and withdraw those BEP-20 stock tokens straight from the exchange.



xStocks is Kraken and Backed’s tokenized stock product that debuted on Solana less than two weeks ago (I wrote about it <a href="https://blockworks.co/news/tokenized-stocks-good-bad">last week</a>).



Tokenized stocks may have been Solana-first, but they will be fiercely multichain. <a href="https://x.com/Bybit_Official/status/1939626244728840498">Bybit</a> is also integrating xStocks.



xStocks’ move to BNB Chain is no surprise, given Backed co-founder Adam Levi’s <a href="https://www.businesswire.com/news/home/20250522493630/en/Kraken-Partners-with-Backed-to-Launch-xStocks-on-Solana-Bringing-Tokenized-Equities-to-the-Masses">stated goal</a> for the product to “be a neutral, public good asset class” and eventually “expanding xStocks to other exchanges and chains.”



What investor mental model do these pieces of news affirm?



The Phantom x Hyperliquid news seems to simultaneously affirm both the <a href="https://blockworks.co/news/battle-for-wallet-supremacy">Fat Wallet</a> thesis and <a href="https://blockworks.co/news/crypto-infrastructure-bloat">Fat App</a> thesis.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">This Phantom x Hyperliquid integration is: • Bullish for Phantom (validation of fat wallet/super app thesis) • Bullish for Hyperliquid (validation of fat protocol thesis) • Bearish for Solana (they have no good perp dex, distribution moat is much smaller than perceived)&mdash; Uma Roy (@pumatheuma) <a href="https://twitter.com/pumatheuma/status/1942669033771536640?ref_src=twsrc%5Etfw">July 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Build a great wallet like Phantom, because wallets, not apps, own the users.



Or build a great app like Hyperliquid, because users follow the app, not the underlying chain.



But if you can, you should most definitely build a Fat Exchange like Robinhood or Kraken, because then you can take your users to whichever chain you want.



Kraken is a Fat Exchange, but it’s not quite as Fat as Robinhood’s 14 million MAUs.&nbsp;



That may explain Kraken’s decision to go multichain fast and cement its position on each respective blockchain.



There was never really a reason to believe that wallets, apps or CEXs would be loyal to any particular chain to begin with.



Time to totally disabuse that notion.



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0xResearch Newsletter

The winners and losers of Phantom’s Hyperliquid integration

Jeff Albus

Howdy!



I’ve been reading a few of these ‘Love Is Blind’ exposés recently, which are always a little fascinating and a little terrifying.&nbsp;



In my own humble opinion, these lawsuits won’t make a meaningful dent in the show’s viewership. What will kill ‘Love Is Blind’ is the fact that the “social experiment” side of the show was settled like five seasons ago, and its storylines are growing increasingly bland.



I digress. As for Solana:



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading">Phantom may boost JitoSOL usage&nbsp;&nbsp;</h2>



Phantom and Jito — Solana’s most notable wallet app and its largest liquid staking provider — announced a partnership today.&nbsp;



Under the deal, users who are natively staking their solana on Phantom will have the option to convert their holdings to the JitoSOL liquid staking token (LST). On top of this, the companies say users will soon be “prompted” to convert unstaked SOL into JitoSOL within the Phantom wallet (I’m told this means in-app JitoSOL minting).



The significance of this is a matter of perspective.



On one hand, LSTs take immobile assets (staked SOL) and make them useful for DeFi applications — which leverages Solana’s base layer security to make the ecosystem more liquid. LSTs only <a href="https://dune.com/embeds/3756050/6316994">make</a> up 6% of all staked solana, so there’s a lot of potential for growth in this area.



But it’s worth noting that prior to the partnership, users could already purchase JitoSOL within Phantom if they wanted to. It takes two to three days to unstake solana, so the Jito-Phantom partnership is really just saving users a bit of hassle in doing something they could already do.



(Jito Foundation contributor Andrew Thurman pointed out that minting JitoSOL is more capital efficient than swapping SOL for JitoSOL, which is also worth noting.)&nbsp;



Looked at this way, Jito might be taking a bet that better education would lead to the adoption of JitoSOL. In other words, users who are staking their SOL might not understand that they can both earn yield and have a token via JitoSOL, and this partnership is akin to sending everyone a big push notification saying: “Hey, you’re leaving money on the table, just FYI!”



I ran this by Phantom’s head of growth, David Wu, who echoed the sentiment that the partnership is largely about education. He declined to comment on whether Jito had paid Phantom as part of the deal.&nbsp;



Jito appears to have convinced others in Solana DeFi that its bet will cash out. Kamino and MarginFi increased their JitoSOL loan-to-value (LTV) ratios — essentially making JitoSOL more valuable as collateral — while Drift raised its deposit cap for the asset.&nbsp;&nbsp;



Thurman said since SOL-JitoSOL is Solana DeFi’s most liquid LST pair, it should be seen as the most valuable LST for use as collateral.&nbsp;



As JitoSOL’s liquidity deepens, Thurman said he sees the LST becoming “the defacto collateral for Solana DeFi.”



— Jack Kubinec



<h2 class="wp-block-heading">Zero In</h2>



Here’s the market share of the four largest Solana LSTs over the past three months:



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="800" height="575" src="https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-2.png" alt="" class="wp-image-87365" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-2.png?w=800 800w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-2.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-2.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-2.png?w=358 358w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-2.png?w=363 363w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-2.png?w=305 305w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-2.png?w=80 80w" sizes="auto, (max-width: 800px) 100vw, 800px" /></figure>



 



As you can see, JitoSOL and mSOL have seen their market dominance falter a bit in recent weeks, primarily driven by the relative growth of INF, a product offered by Sanctum. INF just recently passed bSOL, the LST offered by BlazeStake, to become the third-largest LST.



INF is a novel product whose “infinity pool” can be thought of as a basket of LSTs, offering holders exposure to the weighted average yield of tokens in the pool.



Its growth has also certainly been helped by Sanctum’s points-like program for its CLOUD token airdrop. The airdrop-farming window has ended on Sanctum for now, so it remains to be seen whether INF can continue to grab market share from incumbents.



— Jack Kubinec



<h2 class="wp-block-heading">The Pulse</h2>



It seems like it’s time to finally address the Iggy Azalea in the room: The decade-past-her-peak rapper’s memecoin is driving the online crypto conversation.



Ethereum co-founder Vitalik Buterin <a href="https://x.com/VitalikButerin/status/1798293391144366184">criticized</a> the trend of celebrity backed memecoins, emphasizing the speculative nature and lack of utility in these projects. He expressed his concerns on social media, <a href="https://x.com/VitalikButerin/status/1798290424622113230">stating</a> he was &#8220;feeling quite unhappy&#8221; about the <a href="https://blockworks.co/news/pump-dot-fun-caitlyn-jenner-memecoin">rise</a> of celebrity memecoins, comparing them unfavorably to earlier projects like the NFT based animated series &#8220;Stoner Cats,&#8221; which had a more <a href="https://x.com/stonercatstv/status/1606080857050976256">tangible</a> purpose.



In response, Azalea posted an image <a href="https://x.com/IGGYAZALEA/status/1798471807647068297">depicting</a> herself as a breastfeeding mother with Buterin as the baby, captioned &#8220;he was just hangry.&#8221; This led to a <a href="https://x.com/SCHIZO_FREQ/status/1798519802816082336">flood</a> <a href="https://x.com/chesterweb3/status/1798472282056343942">of</a> <a href="https://x.com/issguac/status/1798472243481383398">reactions</a> from the crypto community, with many users mocking Buterin and supporting Azalea&#8217;s retort. User @0xSweep <a href="https://x.com/0xSweep/status/1798477721233952858">commented</a>, &#8220;He gets all the girls,&#8221; while @kalvissh admitted, &#8220;This is not something I expected to see when I opened Twitter today.&#8221;



Buterin’s criticism and the subsequent social media reactions highlight the ongoing tension between calls for responsible blockchain development and the speculative fervor driving the memecoin craze. As regulatory bodies like the SEC <a href="https://x.com/IGGYAZALEA/status/1798621601371668935">monitor</a> these developments, the long-term viability and ethical <a href="https://x.com/poordart/status/1795727648414703880">considerations</a> of celebrity memecoins remain suspect.



Mother is up 96.9% over the last 24 hours. For my money though, I&#8217;d probably take the advice of the guy whose work makes the entire ecosystem possible in the first place. He just might know a bit more than some random pop singer trying to capitalize on the latest trend.



— Jeffrey Albus



<h2 class="wp-block-heading">One Good DM</h2>



A message from David Wu, head of growth at Phantom:



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="564" height="480" src="https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-3.png" alt="" class="wp-image-87366" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-3.png?w=564 564w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-3.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-3.png?w=302 302w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-3.png?w=307 307w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-3.png?w=257 257w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-3.png?w=80 80w" sizes="auto, (max-width: 564px) 100vw, 564px" /></figure>



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liquid staking

Lightspeed Newsletter: Phantom may boost JitoSOL usage

James Cirrone

Crypto wallets are becoming an even bigger entry point for new users than centralized exchanges.&nbsp;



That’s according to Phantom co-Founder and CEO Brandon Millman who spoke Monday at the Permissionless conference in Austin, Texas.



And that’s why the phrase that anyone who’s been paying attention to crypto for half a minute has come across — “how do we onboard the next billion users” — is fundamentally flawed in Millman’s view.



“The space really needs to focus on…retention of users, and not actually trying to onboard all these net new users,” Millman said. “It doesn&#8217;t matter if you onboard a billion users if your retention is zero, because then you end up with no users.”



Having good security in place is the first step toward getting people to stick around. That’s because if they fall victim to a phishing scheme, it makes it dramatically less likely for them to persist in crypto.



However, the assembled panelists seemed eager to move away from seed phrases, a security measure that’s so rigid it can lock the end user out of their account.&nbsp;



Look no further than <a href="https://www.nytimes.com/2021/01/12/technology/bitcoin-passwords-wallets-fortunes.html">Stefan Thomas</a>, a programmer who has hundreds of millions of dollars worth of bitcoin trapped in a wallet to which he lost the password.



Braavos co-founder and CEO Motty Lavie went as far as to say that seed phrases are “almost the root of all evil.”



Braavos, a smart contract wallet, uses two-factor authentication, biometric authentication and a seed phrase, widening the ways users can access their assets. This, essentially, is a form of account abstraction, which can allow users to recover their funds in the event of losing their seed phrase.&nbsp;



A subsequent panel weighed the evolution of account abstraction and its benefits —&nbsp;chief among them being gasless payments.&nbsp;



Stackup co-founder and CEO John Rising described gas payments as a “huge barrier of entry that has now been knocked down by smart accounts” and paymasters.



“A paymaster is an entity that exists on-chain that can basically sponsor transactions for people. So if you have a marketplace, and you want creators to publish things to your marketplace, you can effectively pay for gas for that,” Rising said.



Still, even if account abstraction became the norm, panelists said crypto wallets would need to evolve to handle customer issues in a more standard manner.&nbsp;



As Lavie put it, people will inevitably make mistakes. They’ll click on links they shouldn’t click on and they’ll transfer funds they shouldn’t have transferred. 



Read more: <a href="https://blockworks.co/news/researcher-security-crypto-wallets">Researchers flag security concern for users of certain crypto wallets</a>



Millman and fellow panelist Jason Lau, OKX’s chief innovation officer, emphasized that providing customer support through standard, time-tested systems is the way to go.&nbsp;



“For some reason, crypto and Web3 don’t really take much inspiration from all of the customer support techniques that have been developed over many decades on Web2 and instead opt for sending people into a Discord channel,” Millman said.&nbsp;



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Brandon Millman

Wallet providers emphasize security as top hurdle to overcome

Sebastian Sinclair

Wallet service provider Phantom said Monday it has introduced a new feature allowing applications to authenticate users using a Solana address.



The introduction of Sign In With Solana (SIWS) is intended to improve the user experience and security by streamlining the traditional &#8220;connect&#8221; and &#8220;signMessage&#8221; flow into a single-click &#8220;signIn&#8221; method.



Traditionally, the connect function enables a user&#8217;s digital wallet to interact with an application, while “signMessage” allows the user to cryptographically verify their identity.



The message lacks human-readable information, which can sometimes lead to new and seasoned users agreeing to malicious prompts. 



Even in cases when connecting a wallet to trusted applications, unexpected pop-up signatures can often confuse or frighten new users, Phantom said in a <a href="https://phantom.app/learn/developers/sign-in-with-solana">statement</a>. This, in turn, can often be a major hurdle for new entrants, it said.



The one-click sign-in method, available as of Phantom version 23.11, allows Solana developers to prompt users to connect and sign a standardized authentication message and prove ownership of their addresses.



Designed as a drop-in replacement for the previous two-step authentication flow, the sign-in method also provides developers with a robust API for creating standardized authentication messages, Phantom said.



The responsibility for message construction shifts from applications to the wallet, allowing Phantom to scrutinize elements such as the site&#8217;s domain or the time of message issuance to ensure legitimacy.



It is unclear whether there could be fresh privacy concerns associated with the shift of responsibility in message construction. Blockworks has reached out to Phantom for comment.



In some instances, that construction may help slow or hinder the progress of malicious actors. That could help prevent instances like <a href="https://blockworks.co/news/solana-based-wallet-users-drained-in-suspected-exploit">last year’s breach</a>, when a coding error allowed hackers to easily find and use client passwords, leading to a breach in both Slope and Phantom wallets.



Private keys associated with the impacted wallets were either leaked or compromised, and these keys were then utilized to authorize fraudulent transactions, according to <a href="https://discover.luno.com/what-exactly-happened-in-the-slope-finance-hack/">reports</a> at the time.



The sign-in feature released on Monday makes authentication more consistent and allows Phantom to check for suspicious activity, its developers said.



Ethereum dapps similarly can facilitate a “sign in with Ethereum” feature using <a href="https://blockworks.co/tag/ethereum-name-service">Ethereum Name Service</a> (ENS), as part of a push for <a href="https://blockworks.co/news/what-is-decentralized-identity">decentralized identity services</a>.



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Phantom

Phantom materializes ‘sign in with Solana’ wallet authentication

Bessie Liu

<div id="highlights-block_62aa2d415a283" class="highlights">
 <ul>
 <li>The discovered vulnerability exposes browser wallet users’ secret recovery phrases</li>
 <li>Affected wallet providers were contacted, and the vulnerability was kept confidential until the security issues were remediated</li>
 </ul>
 
</div>



A number of popular browser-based crypto wallets are vulnerable to hacking under certain conditions, according to new research. 



Blockchain security firm Halborn found several instances where wallets including Brave, MetaMask and Phantom can be compromised under specific computer conditions — adding yet another wrinkle to traders still reeling from recent high-profile decentralized finance (DeFi) hacks.&nbsp;



The conditions can expose a crypto wallet user’s secret recovery phrase (a series of words generated that gives the owner access to their crypto), which can then be used to change their private key. All told, billions of dollars of digital assets are stored in software wallets.&nbsp;



Affected wallet providers were contacted and the vulnerability was kept under wraps until the security issues were remediated.



<h3 class="wp-block-heading">Who is affected? </h3>



Users who meet the following conditions may be at risk:



<ul class="wp-block-list"><li>Users who have unencrypted hard drives</li><li>Users who have previously imported their secret recovery phrase into a web extension on a device that is in the possession of someone else or have had their computer compromised</li><li>Users who have used the “show secret recovery phrase” checkbox to view their secret recovery phrase on-screen during the import process</li></ul>



Cryptocurrency wallets like the ones impacted by this vulnerability, such as Metamask, are a self-custody wallet — meaning users alone are responsible for safeguarding their private keys. 



“Exchanges like Coinbase or Binance usually hold custody of those keys on the behalf of their customers,” Steven Walbroehl, Halborn’s chief security officer and co-founder, told Blockworks.



“This impact is only for those that self-custody those assets, and it is the users&#8217; responsibility to take it seriously, upgrade the wallets to the patched version listed on the wallet developer&#8217;s websites, and to rotate their mnemonic phrase if they think it may be at risk,” Walbroehl said.&nbsp;



MetaMask has <a href="https://medium.com/metamask/security-notice-extension-disk-encryption-issue-d437d4250863" target="_blank" rel="noreferrer noopener">asked</a> users to update their extension versions to 10.11.3 and later and to “take the time to enable full disk encryption on computers.”



Echoing Walbroehl, Dan Finlay, founder and group manager at MetaMask <a href="https://medium.com/metamask/security-notice-extension-disk-encryption-issue-d437d4250863" target="_blank" rel="noreferrer noopener">wrote in a blog post</a> that users should “remember that it’s your responsibility to keep your computer secure. No wallet or software can keep itself safe if the system it runs on is compromised. Take time to learn how to avoid installing a virus on your computer.” 



Phantom, meanwhile, wrote in a <a href="https://phantom.app/blog/demonic-vulnerability" target="_blank" rel="noreferrer noopener">blog post</a> that to protect themselves on Web3, on top of general internet safety measures, users should diversify their wallets to minimize risk and use hardware wallets to store large amounts of assets and currencies.



“Other mitigations include storing the mnemonic phrase/key on a hardware-based wallet like Trezor or Ledger. These wallets still work with software wallets like Metamask when physically connected via a USB cable&#8230;but it protects the keys from attackers that may access your disk,” Walbroehl said.



Halborn has been rewarded $50,000. The wallet providers did not immediately return requests for comment.



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Brave

Security Threat Exposed for Browser-based Crypto Wallets

Jacquelyn Melinek

<div id="highlights-block_61f7fb4afebe8" class="highlights">
 <ul>
 <li>The company also released its anticipated iOS app to the general public</li>
 <li>Phantom is planning to onboard even more users, a “loftey goal of about 50 million” by the end of 2022, CEO Brandon Millman said</li>
 </ul>
 
</div>



Phantom has raised an additional $109 million as the Solana-focused crypto wallet becomes the latest digital asset unicorn.&nbsp;



The Series B capital raise — bringing the company’s valuation to $1.2 billion — was led by Paradigm. The funding will be used to expand to additional blockchains, add more users and make more hires. In total, Phantom has raised <a href="https://cms.blockworks.co/andreessen-horowitz-leads-9m-series-a-round-for-crypto-wallet-phantom/">$118 million</a>.



“We decided to raise the money to put more fuel on the fire and keep it going,” Brandom Millman, co-founder and CEO of Phantom said in an interview with Blockworks.&nbsp;



Even though the wallet caters to Solana users, it plans to expand into other multi-chain ecosystems this year.  Phantom is looking to first add the Ethereum Virtual Machine, or EVM ecosystem. EVM is a platform that developers can use to create decentralized applications, or dApps, on Ethereum.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><cite><meta charset="utf-8">“Our original impetus was to be a <a href="https://cms.blockworks.co/custodial-solution-for-metamask-institutions/">MetaMask</a> competitor, so we want to make moves to realize that and expand to other ecosystems sometime this year,” Millman said. “Phantom was always meant to be the wallet we wanted to use coming from the Ethereum side, so we want to fulfill that.”</cite></blockquote>



The non-custodial crypto wallet now has over 2 million active monthly users, up from virtually zero when it was in beta testing in April 2021. For comparison, the six-year-old Ethereum-focused MetaMask had <a href="https://www.businesswire.com/news/home/20211117006028/en/MetaMask-Surpasses-21-Million-MAUs-as-ConsenSys-Raises-200-Million-to-Make-Web3-Universally-Easy-to-Use-Access-and-Build-On">over 21 million</a> monthly active crypto wallet users as of November 2021.



Last month, Millman told Blockworks he was anticipating anywhere from <a href="https://cms.blockworks.co/solana-focused-wallet-phantom-hits-1-8m-users-but-aims-much-higher-for-2022/">10 million to 50 million users</a> in 2022, but now he is holding his stance at the higher end of that range with a “lofty goal of about 50 million.” 



As demand continues to grow, Phantom is also releasing its <a href="https://cms.blockworks.co/phantom-wallet-launches-mobile-version-to-bring-solana-to-smartphones/">iOS app</a> to the public, so users can store, send and receive Solana’s SPL tokens and NFTs, as well as stake Solana’s native token, SOL, to earn rewards on their iPhones. The Android app for Phantom will be released during the first half of 2022, he said.&nbsp;



Users can also preview non-fungible tokens and use the app’s browser to access all decentralized applications, or dApps, in the Solana ecosystem. To date, Phantom users have staked 112.4 million SOL, roughly $10.4 billion, swapped $1.37 billion in tokens and made $55.2 million in NFTs, DeFi and app transactions.



“We have come from a graveyard of wallets before us that came and went during the last crypto cycle,” Millman said. “It’s tremendous validation for wallets and Web3 in general as an area to create awesome, investable long lasting businesses.”



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Bitcoin

Crypto Wallet Phantom Hits Unicorn Status After Raising $109M

<div id="highlights-block_61cd8f04064bd" class="highlights">
 <ul>
 <li>Phantom saw a 4,400% increase from 40,000 users in July to 1.8 million users in December</li>
 <li>Its mobile application is aiming for an iOS launch at the end of January or first week of February, Milman said</li>
 </ul>
 
</div>



Solana-focused crypto wallet Phantom is looking to onboard a lot more users and is aiming to have more than 10 million weekly active users in 2022, Brandon Millman, co-founder and CEO of Phantom told Blockworks.&nbsp;



“Somewhere in the 10 [million] to 50 [million] range is what we’re shooting for,” Millman said. “It’s really hard to say where exactly it’s going to land, especially because the macro crypto environment is such a huge factor as well,” he added.&nbsp;



For reference, Phantom was undergoing beta testing in April 2021 and saw a 4,400% increase from 40,000 users in July to 1.8 million users in December. Phantom hit 1 million users in November and at the end of December, its weekly active user count reached about 1.8 million, Millman said.



In July, Phantom closed a <a href="https://cms.blockworks.co/andreessen-horowitz-leads-9m-series-a-round-for-crypto-wallet-phantom/">$9 million Series A</a> round led by Andreessen Horowitz, or a16z. Millman said there has been a lot of interest from investors since then, but there are no additional funding rounds to announce at this time.&nbsp;



<h3 class="wp-block-heading">Shifting its mindset to support Solana users&nbsp;</h3>



<div class="wp-block-image"><figure class="alignright size-medium"><img loading="lazy" decoding="async" width="214" height="300" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg" alt="Brandon Millman" class="wp-image-13320" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg?w=214 214w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg?w=732 732w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg?w=1097 1097w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg?w=1463 1463w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg?w=184 184w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg?w=186 186w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg?w=156 156w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Brandon-Millman-1-214x300.jpg?w=57 57w" sizes="auto, (max-width: 214px) 100vw, 214px" /><figcaption>Brandon Millman, co-founder and CEO, Phantom; Source: Phantom</figcaption></figure></div>



The three co-founders, Millman, CPO Chris Kalani and CTO Francesco Agosti all left their roles at 0x, an open protocol crypto infrastructure startup, to create Phantom in the Spring of 2021.



“We were quite deep in the Ethereum space and we really wanted to create a MetaMask competitor,” Millman said. “We had a lot of ideas on how to make the wallet part of Web3 better,” he added.&nbsp;



The original goal was to create a multi-chain version of MetaMask with a focus on DeFi and NFTs, but as the Phantom team saw extreme growth, they’ve shifted their mindset to supporting Solana and making it the best option for Solana wallet users, Millman said. Wallet users can store, send, receive, stake and swap tokens on the Solana blockchain.



Additionally, non-fungible tokens saw exponential growth this year, which contributed to Phantom&#8217;s success because it allows wallet holders to trade and hold Solana-based NFTs, through NFT marketplaces like Solanart. Although Solanart is one of many NFT marketplaces that Phantom connects to, it has had 541,851 total sales with a total SOL volume of 4,532,922, which is about $797,794,272, according to its <a href="https://solanart.io/" target="_blank" rel="noreferrer noopener">website</a>.&nbsp;



<div class="wp-block-image"><figure class="alignleft size-medium"><img loading="lazy" decoding="async" width="169" height="300" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Image-from-iOS-1-169x300-1.jpg" alt="" class="wp-image-13332" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Image-from-iOS-1-169x300-1.jpg?w=169 169w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Image-from-iOS-1-169x300-1.jpg?w=576 576w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Image-from-iOS-1-169x300-1.jpg?w=144 144w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Image-from-iOS-1-169x300-1.jpg?w=147 147w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Image-from-iOS-1-169x300-1.jpg?w=123 123w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Image-from-iOS-1-169x300-1.jpg?w=45 45w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Image-from-iOS-1-169x300-1.jpg?w=750 750w" sizes="auto, (max-width: 169px) 100vw, 169px" /><figcaption>Phantom&#8217;s mobile app in beta; Source: Phantom</figcaption></figure></div>



Despite enormous growth, the desktop browser-based crypto wallet has no plans to slow down. In addition to expanding to over 10 million users, the company is working on finishing up its mobile applications for iOS and Android, Blockworks previously <a href="https://cms.blockworks.co/phantom-wallet-launches-mobile-version-to-bring-solana-to-smartphones/" target="_blank" rel="noreferrer noopener">reported</a>.&nbsp;



Phantom’s mobile application is currently in beta testing and although it doesn’t have an exact launch date yet, it is aiming for an iOS launch at the end of January or the first week of February, Milman said. Its Android application would follow shortly after.&nbsp;



“The long-term vision is if someone wants to use a blockchain-based application, or dApp, their first instinct to be able to get access to the application should be to download Phantom,” Millman said.&nbsp;



“Very similar to how, if you’re on a laptop, and you want to go to Twitter, your first instinct is to go on a browser. That’s the long-term goal and for that goal to be realized, we do need to be able to support different networks and different blockchains that people are using, so that’s the goal we’re moving toward,” he said.



<hr class="wp-block-separator">
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<hr class="wp-block-separator">

a16z

Solana-focused Wallet Phantom Hits 1.8M Users but Aims Much Higher for 2022

Sam Reynolds

<div id="highlights-block_618adda37b535" class="highlights">
 <ul>
 <li>Phantom recently hit a million users on its desktop wallet</li>
 <li>Phantom Wallet is joining SolFlare in expanding into the mobile wallet space</li>
 </ul>
 
</div>



Breakpoint 2021, Lisbon, Portugal — Phantom, which recently hit a million users on its desktop wallet, announced a mobile version of its Solana wallet at the Breakpoint conference in Lisbon.



Of course, it’s been possible to trade tokens on mobile for quite some time. Nearly every exchange has a mobile app, but trading doesn’t mean custody and the burgeoning market for non-fungible tokens (NFTs) requires custodial wallets like MetaMask.&nbsp;



Phantom has worked hard to expand its custodial wallet on desktop, as more users want the custodial browser experience which MetaMask has pioneered.&nbsp;



Indeed, for the most part, DeFi is a PC-only affair. The wallets and <a href="https://cms.blockworks.co/solana-ignition-hackathon-to-focus-on-defi-web3-gaming-and-nfts/">Web3</a> protocols used for DeFi activities might in theory work on mobile but it’s a messy affair. Swapping SOL and SPL tokens can be tough on a website designed for desktop but being rendered on mobile.



However, with the round-the-clock nature of crypto, seems a natural choice, especially considering MetaMask’s biggest jump in users came as it launched its mobile app.&nbsp;



“We’re expanding as quickly as we can to meet the new inflow of demand for applications built on Solana. With this launch, we’re giving existing and new users the opportunity to use a solid crypto wallet on-the-go,” said Brandon Millman co-founder and CEO of Phantom in a statement.&nbsp;



“This means they can mint NFTs, stake tokens, and more while not being tied to their computers, which carries considerable weight considering how fast the Solana ecosystem currently moves.”



Phantom joins SolFlare, one of the first Solana-native wallets, in a push for bringing Solana to mobile wallets. SolFare is no stranger to the ecosystem, currently staking 22% of the entire supply of SOL.&nbsp;



For its part Phantom said it&#8217;s blockchain agnostic and it believes in the “multi-chain future”, creating wallet apps aligned with market demand.



<hr class="wp-block-separator"/>



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<hr class="wp-block-separator"/>

DeFi

Phantom Wallet Launches Mobile Version to Bring Solana to Smartphones

<div id="highlights-block_612e77f34b15b" class="highlights">
 <ul>
 <li>MetaMask says it has grown by 19x since July 2020</li>
 <li>Other non-custodial wallets like Phantom have also seen similar exponential growth as more users explore DeFi as an investment alternative</li>
 </ul>
 
</div>



As the total value locked in decentralized finance (DeFi) comes close to the <a href="https://defipulse.com/" target="_blank" rel="noreferrer noopener">$90 billion</a> mark, MetaMask, the most popular wallet used by traders in the DeFi ecosystem, has reported that it has passed the 10 million mark of monthly active users, up from just over 500,000 a year ago.&nbsp;



“MetaMask defined a new kind of cryptocurrency wallet, where users don&#8217;t just interact with currencies, but with decentralized applications, and we are constantly making these new kinds of applications more safe and accessible to a broader audience,” said Dan Finlay, MetaMask Co-Founder. “We&#8217;re letting users explore new ways of establishing trust on the internet.”



Part of the appeal of MetaMask is that it functions as a browser add-on, allowing integration with DeFi protocols and dApps on the web. Furthermore, with MetaMask, users are always in control of their assets. Their keys are always under their control on their PC, so a situation like what happened with QuadrigaCX — where the <a href="https://www.investmentexecutive.com/news/industry-news/not-your-keys-not-your-coins-lessons-from-quadrigacx-fraud/" target="_blank" rel="noreferrer noopener">founder absconded with the keys</a> and thus the assets of the exchange — can’t happen.&nbsp;



Given <a href="https://cms.blockworks.co/why-asia-is-becoming-the-natural-home-of-decentralized-finance/" target="_blank" rel="noreferrer noopener">DeFi’s appeal in Asia</a>, MetaMask reported that Asia is the number one region in terms of users’ growth, followed by Europe and North America. Within Asia, the Philippines, Vietnam, China, India, Indonesia and Thailand led for the number of downloads and active users. MetaMask’s growth story is shared by other wallets in the industry.



Speaking to Blockworks, the CEO of Phantom, a non-custodial wallet startup, said that their platform is about to break 100,000 MAUs. Since its launch four months ago it has already gotten to a point where there are already 1 million transactions a month though through the wallet. 



“There’s two predominant umbrellas: DeFi and NFTs, which have exploded over the past year and a half or so. There’s no sign of slowing down as long as people are discovering these apps and becoming comfortable with them,” Brandon Millman, CEO of Phantom, told Blockworks. “These applications are going to become more and more popular and there will be more of them and the wallet is a window into all of them.”



Millman believes that the only thing holding back further adoption of DeFi and NFTs are expensive gas fees — something that<a href="https://cms.blockworks.co/ethereums-role-in-a-multi-chain-future/" target="_blank" rel="noreferrer noopener"> many new blockchain protocols</a> are trying to solve.



“NFTs are just getting started&#8230;Even within the US there’s a huge number of people who don’t interact with them at all because they’re so expensive, but despite that, you&#8217;re still seeing a lot of growth,” he told Blockworks. “With the advent of blockchain tech that’s faster and cheaper, you’ll see more and more people buying NFTs and trading them. From a consumer perspective, it has a lot of room to grow from the NFT trader and publisher perspective.”



But non custodial wallets aren’t for everyone.



Some investors would not feel comfortable having their millions tied to a browser plugin. This isn’t a bad thing per se, rather it shows the strength of retail interest in DeFi.&nbsp;



Eric Ervin, CEO of Blockforce Capital, added that he’s seeing “incredible demand” from investors looking to get exposure to DeFi, so much so that his company has put together a fund with DeFi ecosystem Vesper Finance to give users that don’t want to install wallets and prefer to get exposure via a more traditional fund subscription, a chance to get exposure to DeFi.&nbsp;



“We believe this will act as an onramp to significant adoption from investors who have yet to approach – and benefit from – the decentralized ecosystem,&#8221; he said.



At this time, MetaMask doesn’t have a token like that Binance or FTX has, but is willing to explore one should there be a &#8220;compelling use case&#8221; for it. These tokens, like BNB or FTX, are utility tokens but are also used by investors as a proxy for a public listing.



Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.

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