Tokenized real-world assets have climbed to more than $30B, with roughly $15B—nearly half—represented by U.S. Treasury debt. The sharpest increase appears in the latest stretch, rising from about $20B in January 2026 to $30B by May 2026, meaning the most recent $10B was added in around five months.

A Manhattan federal judge allowed Arbitrum DAO to transfer $71 million in frozen Ether to Aave, while keeping terrorism victims' claims attached to the assets. The order, issued Friday by Judge Margaret Garnett, amends a restraining notice so an onchain vote can move the funds to a wallet controlled by Aave LLC and shields participants from violating the freeze.

The crypto industry is watching the U.S. Senate Banking Committee's May 14 markup of the CLARITY Act, after the House advanced the bill with a 294-134 bipartisan vote. Polling cited in the report shows 52% support for the measure and 62% favor stronger U.S. leadership in digital assets, while unresolved stablecoin language and ongoing Senate talks could still slow institutional participation.

Paga said it partnered with the Sui blockchain on May 7, outlining plans to add crypto rails, USDsui-backed high-yield USD accounts, and tokenized assets such as real estate and bonds. The roadmap also includes on- and off-ramps and cross-border transfers, with Paga pointing to its $42 billion lifetime payment volume since 2009 as a distribution base.

Aave said its rsETH recovery has entered Phase II after progress addressing an exploit affecting Aave V3 on Ethereum and Arbitrum. It reported that eight attacker-linked Aave V3 positions were liquidated on May 6 and the recovered rsETH collateral was sent to the Recovery Guardian, while a separate $71 million ETH return plan proceeds amid court-related restrictions.

Traditional finance firms and major crypto platforms are expanding into blockchain-based prediction markets as event contracts attract deeper liquidity. Chainalysis said on May 7 that inflows have climbed sharply since September 2024, with retail activity drawing market makers and institutions into larger deposits. The move is advancing alongside ongoing regulatory disputes over whether these products are derivatives or gambling.

The U.S. Senate Banking Committee will hold a May 14 executive session to mark up H.R.3633, the Digital Asset Market Clarity Act of 2025, with the proceeding scheduled for 10:30 a.m. The session will consider amendments and decide whether the bill advances toward a full Senate vote. Supporters say the proposal aims to clarify SEC and CFTC roles and set registration, disclosure, and operational requirements for digital asset market participants.

LayerZero Labs said on 8 May it mishandled communication after April’s rsETH incident and acknowledged its 1/1 DVN setup for high-value apps introduced risks it did not anticipate. The company also stated its internal RPC infrastructure used by the LayerZero Labs DVN was compromised during the attack and said 1/1 DVN is no longer supported, with defaults moving toward 5/5 or at least 3/3 verification. Following the roughly $292 million rsETH exploit, KelpDAO, Solv Protocol (over $700 million) and Re Protocol (more than $475 million TVL) announced migrations to Chainlink CCIP.