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Ault Blockchain Develops Layer-1 Network Amid Banking Risks

Created at 16 Jul · 10:00 AM1 source↑ Market-relevant
IN SHORT

Ault Blockchain is developing a new Layer-1 network to facilitate digital settlement and tokenized assets, driven by concerns over "debanking" and disruptions in traditional financial services. The EVM-compatible platform aims to reduce reliance on banks and ensure continuous service.

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Key Numbers

1Layer-1 network initiative

Who's Involved

Ault Blockchain
Developing a new Layer-1 network amid banking risks
Ault Capital Group
Subsidiary of Hyperscale Data, developing the blockchain network
Todd Ault
Founder of Ault Blockchain, experienced banking disruptions

↳ Why This Matters

The development highlights a growing trend of blockchain projects seeking to bypass traditional financial intermediaries due to perceived risks and disruptions, potentially impacting the future of digital asset settlement and financial infrastructure.

Key facts

  • Ault Blockchain is developing a new Layer-1 network.
  • The network aims to facilitate digital settlement, tokenized assets, and decentralized trading.
  • The initiative is a response to "debanking" issues and disruptions in traditional banking services.
  • The platform will be EVM-compatible and designed with compliance at its core.
  • Governance will utilize a Wyoming DAO LLC structure with identified participants.
  • Token distribution will be tied to network mining and activity, not a public sale.

Ault Blockchain has unveiled the motivation behind its forthcoming Layer-1 network, citing significant banking challenges as a primary influence. The network is intended to support digital settlement, tokenized assets, and decentralized trading, aiming to lessen dependence on traditional financial institutions.

The project emerges amidst ongoing discussions in the U.S. regarding banking services for cryptocurrency-related businesses, particularly addressing the "debanking" issue where firms operating within regulatory frameworks lose access to banking. Ault Blockchain's network is designed to offer a resilient platform that can continue operating irrespective of banking partnerships, addressing past disruptions experienced by companies under Todd Ault's leadership, such as an inability to access funds during the COVID-19 period.

The platform will feature an Ethereum Virtual Machine (EVM) compatible design, focusing on tokenized real-world assets and other financial applications. Compliance is a central tenet, with governance structured through a Wyoming DAO LLC, requiring participant identification and imposing restrictions to prevent centralized control.

Unlike many blockchain projects, Ault Blockchain does not plan a public token sale. Instead, tokens will be distributed over the long term, linked to mining node participation and measurable network activity. The project's unique background stems from a publicly listed corporate group involved in Bitcoin mining, AI hardware, and data centers, underscoring its focus on creating compliant business infrastructure independent of traditional banking relationships.

Frequently asked questions

The primary driver is the "debanking" issue and disruptions experienced with traditional financial institutions, aiming to create a more resilient platform for digital assets and settlements.

It will utilize a Wyoming DAO LLC structure, requiring participant identification and implementing restrictions to ensure decentralized control.

No, the company plans to distribute tokens over the long term, based on mining node participation and measurable network activity.

What Happens Next

01Ault Blockchain plans long-term token distribution tied to network participation.
02The network will be developed with a Wyoming DAO LLC governance structure.

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Cadence

How It Developed

Ault Blockchain is developing a Layer-1 network.
The network aims to facilitate digital settlement, tokenized assets, and decentralized trading.
The project is influenced by banking issues faced by cryptocurrency businesses.
The platform is designed to reduce reliance on traditional financial institutions.
It will feature an Ethereum Virtual Machine (EVM) compatible design.
Compliance and a Wyoming DAO LLC structure are core to its governance.
Native tokens will be distributed based on network participation and activity, not a public sale.
The project originates from a publicly listed corporate group with interests in Bitcoin mining, AI hardware, and data centers.

Sources

T1
Ault Blockchain Reveals Debanking Risks Inspired Its New Layer-1 InitiativeCoinGape

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