We are welcoming you to our weekly digest! Here, we discuss the latest trends and advancements in account abstraction, chain abstraction and everything related, as well as bring some insights from Etherspot’s kitchen.
The latest news we’ll cover:
- Circle Gateway for Chain-Abstracted USDC
- Buterin’s Warning: Ethereum at Risk
- PillarX: Chain Abstraction solution powered by Etherspot
- Particle Network Web3 Fragmentation Report Vol.2
- Securitize x RedStone Launch Trusted Single Source Oracle Please fasten your belts!
Circle Gateway for Chain-Abstracted USDC
Circle has announced Circle Gateway, a new cross-chain primitive designed to eliminate the friction of moving USDC between blockchains. Today’s multichain landscape forces users to navigate manual bridging steps and businesses to pre-position liquidity on multiple networks, creating capital inefficiencies, operational complexity, and execution delays.
Circle Gateway uses a non-custodial smart contract into which users deposit USDC to establish a single, unified balance accessible in real-time across supported chains. End users gain frictionless, one-click transfers without changing networks or moving assets manually.
Businesses benefit from just-in-time liquidity on any integrated chain, reducing overhead and improving capital utilization. The initial rollout will target Avalanche, Base, and Ethereum testnets in July, with additional blockchains to follow.
Buterin’s Warning: Ethereum at Risk
Speaking at the EthCC[8], co-founder Vitalik Buterin cautioned that the network faces a pivotal moment: without concrete guarantees of decentralization, Ethereum may lose its competitive edge and become “a generational thing” that fades away.
Buterin outlined a series of practical “tests” that every crypto project should pass to ensure user security. The walk-away test asks whether users retain control of their assets if the project’s operators vanish. The insider attack test gauges how much damage rogue insiders or compromised front-ends could inflict. He also highlighted the need to minimize the trusted computing base, the amount of code that must be assumed secure to protect funds and data.
Warning that many layer-2 networks and DeFi applications rely on backdoors, instant upgrade mechanisms or insecure interfaces, he argued these hidden vulnerabilities undermine true decentralization. He also urged privacy to become a default feature rather than an optional add-on, noting that zero-knowledge solutions can backfire if users still expose full transaction histories when authenticating through centralized providers.
Buterin stressed that the coming year, marking Ethereum’s tenth anniversary, must focus on building systems that resist insider threats, pass user-centric security tests and uphold robust decentralization, or risk ceding ground to more resilient competitors.
PillarX: Chain Abstraction solution powered by Etherspot
At EthCC 2025, Etherspot CEO Michael Messele unveiled PillarX’s exchange, powered by Etherspot Pulse, showcasing true chain abstraction in action.
In a live demo, Michael purchased $0.10 of CYBER tokens on Optimism using USDC held on Arbitrum, all within the same smart-account flow. The app generated a resource lock on Arbitrum to secure funds, routed the swap to Optimism, and displayed the newly acquired tokens in the user’s PillarX wallet. He then repeated the process on Polygon, buying OSSuper tokens with the same USDC reserve, again loading the resulting assets seamlessly into his unified portfolio.
By batching approvals, gas sponsorship, and cross-chain routing behind a single MetaMask signature, PillarX eliminates the friction of manual bridging and separate wallets. The demo highlighted how Etherspot Pulse reads aggregate balances across chains, selects the cheapest execution path, and delivers sub-two-second confirmations.
PillarX’s full launch is slated for later this year on both mobile and desktop, promising one-click, gas-sponsored trading on any EVM network.
Watch the full demo here.
Particle Network Web3 Fragmentation Report Vol.2
Particle Network has published its second annual Web3 Fragmentation Report, showing that despite the surge in chain abstraction solutions since mid-2024, fragmentation across blockchains, applications, users and assets has intensified rather than abated.
The top five chains’ share of total DeFi TVL slipped from 85% in 2024 to 80% in 2025, while sub-top-10 chains collectively rose from 10% to nearly 12%. Even as rollups and modular frameworks proliferate, new chains capture only marginal liquidity, and compatibility gaps among the top ten networks have grown wider.
Daily active address data reveal a stark divergence between capital and popularity: NEAR and Solana lead with roughly 2.7 million and 2.6 million daily users, respectively, while Ethereum Mainnet, though still commanding the largest TVL, falls outside the top ten for user engagement.
Fragmentation has shifted from incentive-driven airdrop farming to a passive expansion phenomenon, driven by easier chain launches and a saturated market of niche L1s and L2s .
On the developer side, 8,925 monthly builders work on the EVM stack, over three times the next largest ecosystem, but duplicated deployments and inconsistent standards persist. Asset fragmentation remains pronounced: Ethereum and Tron together host nearly 94% of all stablecoins, and NFT collections remain largely siloed per chain.
Particle Network warns that without more widespread and interoperable abstraction layers, Web3’s UX and economic efficiency will continue to suffer, underscoring the urgency of making chain abstraction a first-class priority rather than a niche narrative.
Securitize x RedStone Launch Trusted Single Source Oracle
Securitize and oracle provider RedStone have released a whitepaper introducing the Trusted Single Source Oracle (TSSO), a new model for on-chain verification of Net Asset Value (NAV) updates tailored to tokenized private funds. The framework ensures each NAV update is cryptographically linked to its predecessor with signatures, timestamps, and hashes, preventing tampering once published on-chain.
Traditional DeFi oracles aggregate multiple price feeds to prevent manipulation, but private funds rely on a single administrator for NAV calculations. TSSO addresses this single-source trust issue by creating an immutable chain of NAV records, using a cold-stored “root key” for major updates and a “chain key” for smaller, routine changes within defined thresholds.
Each NAV entry carries a secure digital signature and a reference to the previous record, locking the sequence. Founder of RedStone, Jakub Wojciechowski, explained that Securitize will “build an internal blockchain” of price feeds, guaranteeing that no update is missed and enabling reliable verification that data truly originates from the trusted source.
Securitize’s Chief Product and Technology Officer, Jorge Serna, noted the pilot with existing clients will publish price feeds via RedStone and hopes to open TSSO to the wider industry soon. “We have been issuing treasury and credit funds … and we are already publishing price feeds via RedStone,” he said.
If broadly adopted, TSSO could bridge the trust gap between traditional finance and DeFi, easing integration of tokenized funds with on-chain tools and institutional-grade infrastructure.
Start exploring Account Abstraction with Etherspot!
- Learn more about account abstraction here.
- Head to our docs and read all about Etherspot Modular SDK.
- Skandha — developer-friendly Typescript ERC4337 Bundler.
- Arka — an open-source Paymaster Service for gasless & sponsored transactions.
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