The International Monetary Fund (IMF) has clarified the nature of El Salvador’s Bitcoin holdings, stating that no public funds were utilized for Bitcoin accumulation following the initial review of its financing program in June 2025. Documents provided by Salvadoran authorities indicated that these additions to the nation’s digital asset reserves originated from private donations, thereby not impacting government resources. Concurrently, operational control and majority ownership of the government’s Chivo wallet have been transferred to a private entity, with the state retaining a minority stake and custodial duties. This development addresses inquiries that arose after El Salvador announced a significant Bitcoin acquisition in November 2025, raising questions about its adherence to a $1.4 billion IMF program. In parallel, the cryptocurrency exchange Kraken’s parent company, Payward, has forged a strategic partnership with SoFi, aiming to broaden its stablecoin offerings, settlement capabilities, and institutional trading services. Furthermore, Standard Chartered has launched spot trading for Bitcoin and Ether for its institutional clients in the United Arab Emirates, marking a significant step in mainstream financial institutions embracing digital assets in the region.
El Salvador’s Bitcoin Strategy Under Scrutiny: IMF Clarifies Funding Sources
El Salvador’s ambitious adoption of Bitcoin as legal tender has consistently attracted international attention, particularly from financial institutions like the International Monetary Fund (IMF). Following the first review of El Salvador’s Extended Fund Facility (EFF) arrangement in June 2025, concerns were reignited regarding the nation’s Bitcoin holdings and their potential impact on its fiscal health. The IMF’s recent statement, issued on Thursday, has provided a definitive clarification: the Bitcoin accumulated post-review was not financed through public resources.
According to the IMF’s assessment, documentation submitted by El Salvador’s government confirmed that the increase in its Bitcoin reserves stemmed from private donations. This assertion directly addresses the period after November 2025, when the Salvadoran administration announced the acquisition of 1,090 Bitcoin, valued at approximately $100 million at the time. This announcement had previously prompted renewed scrutiny from the IMF and other observers, who questioned the transparency and financial implications of such acquisitions within the context of a $1.4 billion IMF financing program. The IMF’s verification process involved a thorough examination of the financial flows and documentation related to these transactions, ensuring that public funds, intended for broader economic stabilization and development, were not diverted for speculative asset purchases.
Chivo Wallet Control Shift: A Move Towards Private Sector Integration
Beyond the clarification on Bitcoin funding, the IMF’s statement also revealed a significant shift in the operational structure of El Salvador’s Chivo wallet. Majority ownership and operational control have been transferred to a private operator. While the Salvadoran government will retain a minority stake in the entity and continue to hold custodial responsibilities, the day-to-day management and strategic direction of the wallet will now be in the hands of a private firm.
This move suggests a potential evolution in El Salvador’s digital currency strategy, perhaps indicating a desire to leverage private sector expertise and efficiency in managing the Chivo ecosystem. The Chivo wallet was launched in September 2021 as a key component of the nation’s Bitcoin adoption strategy, aiming to facilitate easy access to digital payments and financial services for its citizens. The transfer of control raises questions about the future development roadmap for the wallet, its integration with other financial services, and its user experience under private management. The IMF’s confirmation that no further accumulation beyond documented donations is anticipated suggests a stabilization of the nation’s Bitcoin holdings under this new operational framework.
Payward and SoFi Forge Strategic Alliance to Enhance Digital Asset Services
In a significant development within the digital asset industry, Payward, the parent company of the cryptocurrency exchange Kraken, has announced a strategic partnership with SoFi, a leading diversified personal finance company. This collaboration is poised to expand Payward’s reach into traditional financial markets and enhance its stablecoin, settlement, and institutional trading capabilities.
The partnership will see SoFi’s stablecoin, SoFiUSD, integrated into the Kraken platform, offering users another reliable digital dollar option. More significantly, Payward will gain access to the SoFi Exchange Network, a move that will provide Kraken’s institutional and business clients with access to 24/7 United States dollar settlement services. This capability is crucial for institutional players who require seamless and round-the-clock liquidity management.
Furthermore, SoFi intends to utilize Kraken Prime, Kraken’s institutional arm, as an additional source of digital asset liquidity. This reciprocal relationship highlights the growing interconnectedness between traditional financial infrastructure and the digital asset space. The partnership also opens the door for future collaborations, with SoFi potentially exploring qualified custody services for digital assets with Kraken in the future.
This move by Payward aligns with a broader trend of crypto companies seeking to bridge the gap with traditional finance. Earlier in the week, reports indicated a partnership between Payward and the London Stock Exchange Group (LSEG) for the offering of tokenized UK stocks through LSEG’s 24/5 trading venue, LSE 24, slated to launch in 2027. Kraken has also been actively expanding its exposure to traditional markets through its acquisition of Backed Finance, the developer of the tokenized equities platform xStocks. This platform has enabled Kraken to offer eligible investors exposure to shares tied to notable initial public offerings (IPOs), such as SpaceX and Jersey Mike’s Subs, demonstrating a clear strategy to integrate traditional investment opportunities within the digital asset ecosystem.
Standard Chartered Pioneers Institutional Digital Asset Trading in UAE
Standard Chartered, a multinational banking giant headquartered in London, has made a significant stride in the digital asset landscape by launching spot Bitcoin (BTC) and Ether (ETH) trading services for its institutional clients in the United Arab Emirates (UAE). This offering is being facilitated through the bank’s entity regulated by the Dubai International Financial Centre (DIFC), a leading financial hub in the Middle East.
This launch positions Standard Chartered as the first global bank to provide institutional digital asset trading within the DIFC and, notably, the first Global Systemically Important Bank (G-SIB) to offer such services in the region. The announcement, shared with Cointelegraph on Thursday, underscores the growing demand from sophisticated financial players for regulated access to cryptocurrencies.
Eligible institutional clients will be able to execute spot Bitcoin and Ether trades directly through Standard Chartered’s established electronic trading channels, which are integrated into the bank’s existing platforms. This seamless integration aims to minimize friction and enhance the trading experience for these clients.
The introduction of spot trading represents an expansion of Standard Chartered’s regulated digital asset offerings in the UAE. The bank had previously launched digital asset custody services in the region in September 2024, providing a secure infrastructure for institutions to hold their digital assets. Furthermore, in June, Standard Chartered entered into a banking agreement with CoinMENA, a regional crypto exchange. This collaboration enables CoinMENA to leverage Standard Chartered for critical services such as fiat on- and off-ramps, client money accounts, and virtual account-based transaction management, further solidifying the bank’s commitment to the digital asset ecosystem.
Broader Implications and Future Outlook
The developments in El Salvador, coupled with the strategic moves by Payward and Standard Chartered, signal a maturing and diversifying digital asset market. The IMF’s clarification regarding El Salvador’s Bitcoin funding is crucial for maintaining confidence in the country’s financial management and its ability to adhere to international financial standards. The shift in Chivo’s operational control might pave the way for more streamlined and user-centric digital payment solutions, potentially attracting further private investment and technological innovation.
The partnership between Payward and SoFi, along with Kraken’s continued expansion into tokenized traditional assets, highlights a growing trend of convergence between the crypto and traditional finance sectors. This integration promises to unlock new avenues for investment, improve liquidity, and enhance the overall efficiency of financial markets. As institutional adoption of digital assets accelerates, such collaborations are expected to become more prevalent, offering a wider range of products and services to a broader investor base.
Standard Chartered’s pioneering move in the UAE is a testament to the region’s burgeoning role as a digital asset hub. By offering regulated spot trading services, the bank is catering to the increasing demand from institutional investors seeking to diversify their portfolios with digital assets. This development is likely to encourage other financial institutions to explore similar offerings, further legitimizing cryptocurrencies as an asset class within the global financial system. The ongoing regulatory clarity and the increasing involvement of established financial players are key drivers for the continued growth and mainstream acceptance of digital assets.
