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Crypto Trends

NYDIG Calls for Bitcoin Treasury Companies to Drop ‘Misleading’ mNAV Metric

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Strive Asset Management (ASST) has acquired Semler Scientific (SMLR) in an all-stock deal. While historic, the move also drew attention to what may be a problem for investors valuing bitcoin treasury firms.

The acquisition was the first-ever merger between two Digital Asset Treasuries (DATs) holding bitcoin, giving the combined company control of more than 10,900 BTC and increases net asset value (NAV) per share, which DAT investors view as a measure of “yield.”

In a note this week commenting on the acquisition, Greg Cipolaro, Global Head of Research at NYDIG, argued that the commonly used “mNAV” metric, defined as market cap divided by crypto held, should be removed from industry reporting altogether.

“At best, it’s misleading; at worst, it’s disingenuous,” the firm claimed in the note.

NYDIG pointed out that it fails to account for operating businesses or other assets that a DAT may own. Most major bitcoin treasury firms do, indeed, operate businesses that add value.

Second, NYDIG wrote, mNAV often uses “assumed shares outstanding,” which could include convertible debt that hasn’t met conversion conditions.

“Convert holders would demand cash, not shares, in exchange for their debt. This is a much more onerous liability for a DAT than simply issuing shares,” the firm added. “Because convertible debt is essentially volatility harvesting (converts are debt + call options), the DAT is incentivized to maximize its equity volatility.”

Currently, publicly traded bitcoin treasury firms hold over 1 million BTC, and many are now trading below their mNAV, which could suggest more acquisitions are coming in the near future.



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Crypto Trends

XRP Price Final Low: Here’s The Target To Watch For Next Recovery

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Crypto analyst CasiTrades has indicated that the XRP price could drop to a final low before it begins its next leg to the upside. In line with this, she highlighted the target to watch out for as altcoin looks to end this downtrend and begin its recovery. 

Level To Watch As XRP Price Eyes Final Low

CasiTrades revealed in an X post that $2.715 might mark the final low for the XRP price before it begins its wave 3 impulsive move to the upside. She noted that the price level is the bottom trendline of the consolidation and, importantly, would still not make a new low in the correction. This came as the analyst highlighted that altcoin had faced a significant rejection at the $3 resistance. 

Furthermore, the XRP price also lost its major .5 fib support at $2.79 and even retested it as resistance. She added that the rejection was sharp and that the Relative Strength Index (RSI) is reflecting strong pressure, which suggests that the market may need to drop to lower levels for this correction to be over. This is why she believes that token may still fall to $2.715. 

Source: Chart from CasiTrades on X

Meanwhile, CasiTrades explained that the price is now forming a divergence on the higher timeframes but that the smaller timeframes haven’t fully exhausted yet. She stated that this suggests that the larger move down is unfolding as a 5th wave, but it hasn’t finished just yet, which is why the altcoin could drop lower. 

The analyst added that some altcoins, such as Ethereum and DOGE, have already reached their bottom targets. Meanwhile, others, including the XRP price, require one last dip to fully exhaust the selling pressure before sentiment can shift bullish. 

Key Signs To Watch For The Altcoin

As part of the key signs to watch, CasiTrades noted that the 1-hour RSI has printed a bullish divergence and is holding a clear trendline. She claimed that a final drop to this price level would help confirm exhaustion. Meanwhile, the altcoin price reclaiming $2.79 by the daily close would be a strong signal, especially if it flips it back into support. 

The crypto analyst assured that the current XRP price action isn’t weakness but a shakeout. She added that tight consolidation, then volatility, and now exhausted selling are the perfect conditions needed for the next major breakout and a fresh market trend. However, crypto analyst Ali Martinez suggested that XRP could drop way lower than the projected bottom at $2.715, noting that there is a gap between $2.73 and $2.51.

At the time of writing, the XRP price is trading at around $2.78, up in the last 24 hours, according to data from CoinMarketCap.

XRP trading at $2.77 on the 1D chart | Source: XRPUSDT on Tradingview.com

Featured image from Getty Images, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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Google’s Robots Can Now Think, Search the Web and Teach Themselves New Tricks

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In brief

  • DeepMind’s Gemini Robotics models gave machines the ability to plan, reason, and even look up recycling rules online before acting.
  • Instead of following scripts, Google’s new AI lets robots adapt, problem-solve, and pass skills between each other.
  • From packing suitcases to sorting trash, robots powered by Gemini-ER 1.5 showed early steps toward general-purpose intelligence.

Google DeepMind rolled out two AI models this week that aim to make robots smarter than ever. Instead of focusing on following comments, the updated Gemini Robotics 1.5 and its companion Gemini Robotics-ER 1.5 make the robots think through problems, search the internet for information, and pass skills between different robot agents.

According to Google, these models mark a “foundational step that can navigate the complexities of the physical world with intelligence and dexterity”

“Gemini Robotics 1.5 marks an important milestone toward solving AGI in the physical world,” Google said in the announcement. “By introducing agentic capabilities, we’re moving beyond models that react to commands and creating systems that can truly reason, plan, actively use tools, and generalize.”

And this term “generalization” is important because models struggle with it.



The robots powered by these models can now handle tasks like sorting laundry by color, packing a suitcase based on weather forecasts they find online, or checking local recycling rules to throw away trash correctly. Now, as a human, you may say, “Duh, so what?” But to do this, machines require a skill called generalization—the ability to apply knowledge to new situations.

Robots—and algorithms in general—usually struggle with this. For example, if you teach a model to fold a pair of pants, it will not be able to fold a t-shirt unless engineers programmed every step in advance.

The new models change that. They can pick up on cues, read the environment, make reasonable assumptions, and carry out multi-step tasks that used to be out of reach—or at least extremely hard—for machines.

But better doesn’t mean perfect. For example, in one of the experiments, the team showed the robots a set of objects and asked them to send them into the correct trash. The robots used their camera to visually identify each item, pull up San Francisco’s latest recycling guidelines online, and then place them where they should ideally go, all on its own, just as a local human would.

This process combines online search, visual perception, and step-by-step planning—making context-aware decisions that go beyond what older robots could achieve. The registered success rate was between 20% to 40% of the time; not ideal, but surprising for a model that was not able to understand those nuances ever before.

How Google turn robots into super-robots

The two models split the work. Gemini Robotics-ER 1.5 acts like the brain, figuring out what needs to happen and creating a step-by-step plan. It can call up Google Search when it needs information. Once it has a plan, it passes natural language instructions to Gemini Robotics 1.5, which handles the actual physical movements.

More technically speaking, the new Gemini Robotics 1.5 is a vision-language-action (VLA) model that turns visual information and instructions into motor commands, while the new Gemini Robotics-ER 1.5 is a vision-language model (VLM) that creates multistep plans to complete a mission.

When a robot sorts laundry, for instance, it internally reasons through the task using a chain of thought: understanding that “sort by color” means whites go in one bin and colors in another, then breaking down the specific motions needed to pick up each piece of clothing. The robot can explain its reasoning in plain English, making its decisions less of a black box.

Google CEO Sundar Pichai chimed in on X, noting that the new models will enable robots to better reason, plan ahead, use digital tools like search, and transfer learning from one kind of robot to another. He called it Google’s “next big step towards general-purpose robots that are truly helpful.”

New Gemini Robotics 1.5 models will enable robots to better reason, plan ahead, use digital tools like Search, and transfer learning from one kind of robot to another. Our next big step towards general-purpose robots that are truly helpful — you can see how the robot reasons as… pic.twitter.com/kw3HtbF6Dd

— Sundar Pichai (@sundarpichai) September 25, 2025

The release puts Google in a spotlight shared with developers like Tesla, Figure AI and Boston Dynamics, though each company is taking different approaches. Tesla focuses on mass production for its factories, with Elon Musk promising thousands of units by 2026. Boston Dynamics continues pushing the boundaries of robot athleticism with its backflipping Atlas. Google, meanwhile, bets on AI that makes robots adaptable to any situation without specific programming.

The timing matters. American robotics companies are pushing for a national robotics strategy, including establishing a federal office focused on promoting the industry at a time when China is making AI and intelligent robots a national priority. China is the world’s largest market for robots that work in factories and other industrial environments, with about 1.8 million robots operating in 2023, according to the Germany-based International Federation of Robotics.

DeepMind’s approach differs from traditional robotics programming, where engineers meticulously code every movement. Instead, these models learn from demonstration and can adapt on the fly. If an object slips from a robot’s grasp or someone moves something mid-task, the robot adjusts without missing a beat.

The models build on DeepMind’s earlier work from March, when robots could only handle single tasks like unzipping a bag or folding paper. Now they’re tackling sequences that would challenge many humans—like packing appropriately for a trip after checking the weather forecast.

For developers wanting to experiment, there’s a split approach to availability. Gemini Robotics-ER 1.5 launched Thursday through the Gemini API in Google AI Studio, meaning any developer can start building with the reasoning model. The action model, Gemini Robotics 1.5, remains exclusive to “select” (meaning “rich,” probably) partners.

Generally Intelligent Newsletter

A weekly AI journey narrated by Gen, a generative AI model.





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Fnality secures $136m, Zerohash raises $104m
Crypto Trends

Fnality secures $136m, Zerohash raises $104m

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Crypto startups secured close to $380 million across 17 deals in the week of Sept. 21–27, led by Fnality’s $136 million Series C and Zerohash’s $104 million Series D.

Strategic raises and early-stage funding rounds, compiled using Crypto Fundraising‘s database, are adding to the total despite broader market caution.

Summary

  • Crypto startups raised $378M this week across 17 deals despite market caution
  • Fnality led with $136M Series C; Zerohash followed with $104M Series D raise
  • RedotPay hit $47M strategic funding; multiple seed deals boosted the total

Here’s a detailed breakdown of this week’s crypto funding activity:

Fnality International

  • Raised $136 million in a Series C round
  • Fnality International is developing a regulated payment system
  • The investment was backed by Westpac, Bank of America, and Citi
  • The project has raised $344.2 million so far

Zerohash

  • Zerohash secured $104 million in a Series D round
  • The project is a full‑stack crypto‑service infrastructure provider
  • Investors include Fifth Third, Morgan Stanley, and SoFi

RedotPay

  • RedotPay raised $47 million in a Strategic round with a fully diluted valuation of $1 billion
  • The investment was backed by Coinbase Ventures, Galaxy Digital, and Vertex Ventures
  • The project has raised $87 million so far

Bastion

  • Bagged $14.6 million in a Strategic round
  • Bastion is operating in analytics, asset management, data service, and stablecoin sectors
  • Investors include Coinbase Ventures, Sora Ventures, and Samsung Next
  • Bastion has raised $39.6 million so far

Raiku

  • Raiku raised $11.25 million in a Seed round
  • Backed by Pantera, Jump Capital, and Lightspeed Faction
  • Raiku is a coordination layer and infrastructure protocol built

Projects < $10 Million

  • BULK, $8 million in a Seed round
  • Cloudburst, $7 million in a Series A round
  • Divine, $6.6 million in a Seed round
  • Shield, $5 million in a Seed round
  • Akio, $5 million in a Seed round
  • Coop Records, $4.5 million in a Seed round
  • Falcon Finance, $4 million in a Public sale
  • USD AI (Permian Labs), $4 million in an unknown round
  • Stablecorp (QCAD), $3.6 million in a Strategic round
  • Melee, $3.5 million in a Pre-seed round
  • Hana Network, $3 million in a public sale with $400 million fully diluted valuation
  • Lab, $1.5 million in a Public sale



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Crypto Trends

China Eyes Role as Custodian of Central Bank Gold Reserves Amid Bullion’s Record Run

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China is reportedly making a bid to expand its influence in global gold markets by offering to hold foreign central bank reserves within its borders.

According to Bloomberg, the People’s Bank of China has used the Shanghai Gold Exchange in recent months to pitch central banks in friendly countries on the idea. At least one Southeast Asian country has shown interest, people familiar with the matter told Bloomberg.

The push would allow Beijing to strengthen its role as a bullion hub and reduce reliance on Western financial centers. Custodian services are a key part of that infrastructure, helping to attract more trading activity and enhance credibility.

Gold analyst Jan Nieuwenhuijs noted on X that foreign central banks have technically been able to store gold in Shanghai since 2014, but uptake has been minimal so far. He added that one Southeast Asian country, possibly tied to the mBridge cross-border payments project, could be evaluating the option.

The timing comes as central bank demand has underpinned a powerful rally in bullion.

Spot gold climbed as high as $3,784.74 an ounce in New York on Monday, setting another record before easing slightly. According to MarketWatch, the metal closed last week at $3,789.80, up 43.59% year-to-date — well ahead of bitcoin’s 17% gain, the S&P 500’s 12.96% rise and the Nasdaq Composite’s 16.43% increase.

Kitco News reported that despite overbought conditions, analysts expect gold’s bullish momentum to continue, citing inflation trends and growing demand for alternatives to U.S. Treasurys. Chris Mancini, co-portfolio manager at Gabelli Funds, said investors are increasingly turning to gold as a substitute for the dollar.

Still, China faces competition from established markets such as London, whose vaults hold more than 5,000 tons of global reserves. The World Gold Council ranks China fifth among central bank gold holders, but its domestic market for jewelry, bars and coins remains the world’s largest.



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The UK Needs Regulatory Clarity That Matches Ambition
Crypto Trends

The UK Needs Regulatory Clarity That Matches Ambition

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Opinion by: Azariah Nukajam, head of regulation and compliance at Gemini

The UK is at a critical juncture in its approach to the rapidly evolving digital assets space.

Having solidified itself as a financial powerhouse in the modern global economy, the government has often spoken about making the UK a “leading global crypto hub.” Policy development has, however, been slow, fragmented and insufficiently ambitious.

Hesitation carries costs for a sector as fast-moving as crypto and decentralized finance (DeFi). Capital, talent and innovation are highly mobile. The UK risks losing ground to more proactive jurisdictions such as the US and Singapore.

To preserve its competitiveness, the government must match its ambition with action while learning from international peers.

Bold ambitions and slow delivery

The Financial Conduct Authority (FCA), the UK’s financial services regulator, and the UK government should work hand-in-hand to support the growth of the space and ensure these rules are both complied with and achievable. The UK government is responsible for setting the legal framework, while the FCA implements and enforces these rules, providing guidance and timelines on how to adhere to them.

Clear and progressive legislation is essential for any healthy market. A contrasting example is the previous US administration, which took a “regulation by enforcement” approach to regulating the crypto industry, with no clear agency defining the rules by which the crypto industry was governed.

The UK government recently proposed a Draft Statutory Instrument (SI), a forward-thinking framework for regulating crypto assets, hoping to create a crypto-friendly environment within the UK. Theoretically, it’s a significant milestone for the UK’s digital asset sector. But in practice, it’s only a modest step forward for many reasons.

Ongoing discussions among industry participants consistently highlight the slow pace of reform; institutions have long awaited clarity on the UK’s stance on listed crypto products, and in August, the FCA opened retail access to crypto exchange-traded notes. Meanwhile, the increasingly popular crypto exchange-traded funds (ETFs) remain banned.

Additionally, concerns about the lack of definition of the regulatory boundaries for DeFi — a fast-growing segment of the industry — make it difficult for crypto firms to navigate the DeFi and centralized finance (CeFi) perimeter.

Related: 40% of UK crypto users report blocked payments amid rise in ‘anti-consumer’ practices

The proposed legislative and regulatory rules also require considerably more reporting requirements, burdening firms’ compliance teams and undermining the privacy ethos associated with decentralization. Automated tax reporting to HMRC (the UK’s tax, payments and customs authority) is one example of this, which many argue will discourage investors from using a UK-based exchange and push them to jurisdictions with more favorable tax offerings.

Unless the government takes industry feedback seriously and adjusts to create a holistic framework balancing consumer safeguards and innovation, it risks being left behind in the global crypto race.

An engaged regulator

On the other hand, the FCA has taken a more structured and engaged approach to the UK’s crypto sector, demonstrating that it is willing to engage with crypto firms to prevent market abuse and protect consumers while remaining competitive.

Unlike the government, which often appears reactive, the FCA has been proactive: hosting roundtables, canvassing industry input and setting out a phased approach to regulatory development with its Crypto Roadmap. They have also provided more detailed guidance on effectively implementing specific rules, including consumer protection, market integrity and support for responsible innovation. Even if market participants disagree with the FCA’s proposals, this matters hugely in an industry that values transparency and predictability and is key in giving confidence to UK crypto businesses and investors.

Nevertheless, the challenge lies in the FCA ensuring that its rules are proportionate. While large firms may be able to absorb heavy compliance burdens, smaller startups may struggle to comply, which would deter them from operating out of the UK.

A path toward crypto leadership

The good news is that there’s still time to change course. Other jurisdictions have already moved more decisively with their crypto regulation. The EU’s Markets in Crypto-Assets Regulation framework gives businesses clear and comprehensive rules to operate within, the CLARITY and GENIUS Acts put the US on the path to global crypto dominance, and the Monetary Authority of Singapore has introduced a rigorous licensing process alongside regulatory sandboxes and pilot approaches. While a second-mover advantage will allow the UK to learn from the experiences of others, it also risks being left behind if they don’t act quickly to address the industry’s concerns.

The regulator has laid a promising foundation, and through greater coordination with government, bold ambitions and precise implementation, the UK can lay fertile ground to become a leader in the global crypto economy.

Opinion by: Azariah Nukajam, head of regulation and compliance at Gemini.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.



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Momentum Begins Yield Campaign Amid Liquidity Expansion Plans
Crypto Trends

Momentum Begins Yield Campaign Amid Liquidity Expansion Plans

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Momentum, a decentralized exchange (DEX) and liquidity hub within the Sui ecosystem, has launched its HODL Yield Campaign in collaboration with BuidlPad, a Tier-1 launchpad. The initiative runs from September 26 to October 19, offering high-yield incentives across a range of stablecoin, BTC, and SUI pools.

With over $170 million in total value locked (TVL) and $12.1 billion in cumulative trading volume, Momentum has become a key infrastructure provider on Sui. Its product suite includes Momentum DEX, xSUI liquid staking, MSafe treasury infrastructure, and DeFi strategy Vaults.

1/ Momentum x BuidlPad: HODL Yield Campaign is LIVE 🌊

Deposit. Grow. Earn. 🚀
Boost your Bricks rewards ahead of our TGE.

Be an early liquidity builder!

Learn More👇https://t.co/1dfUGrAUEK

— Momentum (@MMTFinance) September 26, 2025

The campaign features incentivized liquidity pools and targets TVL growth ahead of TGE, including:

  • Sui–USDC
  • suiUSDT–USDC (0.01% and 0.001% fee tiers)
  • LBTC–wBTC / xBTC–wBTC
  • xSUI–SUI

Participants in the campaign can access elevated yield opportunities, with advertised returns reaching up to 155% APY and a temporary 2x multiplier on Bricks rewards. 

The initiative appears aimed at reinforcing on-chain liquidity ahead of Momentum’s upcoming Token Generation Event (TGE), while also encouraging broader user engagement across supported tools.

Partnership reflects ecosystem-focused strategy

The collaboration between Momentum and BuidlPad aligns with ongoing efforts to scale infrastructure within the SUI ecosystem. BuidlPad, known for its compliance-first token launch model, has previously been involved in projects such as SaharaAI and Lombard.

Its involvement with Momentum comes as the platform announces additional integrations with Wormhole and OKX Wallet, moves intended to expand liquidity and cross-chain participation.

Momentum’s recent growth in total value locked and trading activity highlights its emerging role within Sui’s DeFi landscape. These developments suggest the protocol is working to position itself as a liquidity provider catering to both retail and institutional participants ahead of key milestones.

Also Read: Sui’s Momentum DEX Launches Cross-Chain Trading Push





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XRP Surpasses Key Price Gap: What Could Happen Next?
Crypto Trends

XRP Surpasses Key Price Gap: What Could Happen Next?

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XRP is facing a drop alongside the rest of the broader crypto market. In the last 24 hours, a total of $209.05 million has been liquidated as digital assets extended a downturn since the week’s start.

The release of a PCE report on Friday, regarded as the Federal Reserve’s preferred inflation gauge, did just a little to move the crypto markets. Core inflation was little changed in August, likely keeping the central bank on pace for an interest rate cut ahead.

XRP rebounded in Friday’s session, closing the day in green to reach a high of $2.81 before it started declining again.

At the time of writing, XRP was down 3.51% in the last 24 hours to $2.74 and down 9.49% weekly.

XRP price gap emerges

XRP has steadily declined since a high of $3.14 on Sept. 18. The price fell for five straight days at a stretch from this date; on Sept. 22, XRP saw a sharp drop from $2.97 to $2.69.

In another instance, XRP saw a price drop on Thursday from $2.94 to $2.72. The recent XRP price movement has created a price gap, which might attract liquidity, with price seeking to fill it up.

According to Ali, a crypto analyst, XRP has a price gap sitting between $2.73 and $2.51. At a current price of $2.74, XRP is sitting above this price gap.

Two scenarios might be likely: The price gap acts as a magnet, pulling XRP toward it in a bid to fill it up. Second, enormous buying pressure might emerge in the markets, dwindling the impact of the price gap, with XRP clearing it.

In the first scenario, major support is envisaged at the daily SMA 200 at $2.54; on the other hand, a decisive breach above the daily SMA 50 at $2.97 might kick-start a fresh upside move for XRP.



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Crypto Trends

Fed Chair Choice May Be Bitcoin’s Biggest Bull Trigger, CEO Says

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Galaxy Digital chief executive Mike Novogratz said a very dovish choice to lead the Federal Reserve could push Bitcoin into a major rally, even as he warned such a shift would carry serious costs for the US.

According to Novogratz, if the next Fed chair after Jerome Powell favors aggressive rate cuts, the dollar could weaken and risk assets would get a big bid. He added that while that outcome would be great for crypto, it would not be good for the country.

Dovish Fed Could Send Bitcoin Higher

Novogratz said during an interview with Kyle Chasse published on YouTube that if the Fed begins cutting when it probably should not, and a strongly dovish chair is installed, investors could rush into assets like gold and Bitcoin.

Based on reports, he suggested a scenario where markets chase higher prices in a short span, producing what traders call a blow-off top. He also allowed that Bitcoin could reach $200K under that set of conditions.

Markets Won’t React Until The Pick Is Real

Reports have disclosed that US President Donald Trump has narrowed his shortlist to three names: White House economic adviser Kevin Hassett, Federal Reserve Governor Christopher Waller, and former Fed Governor Kevin Warsh.

Trump told reporters on Sept. 6 that those were the top three. Novogratz said markets often wait for official action, so a rally of the size he described may not begin until a decision is announced and investors are sure of the policy shift.

BTCUSD currently trading at $109,134. Chart: TradingView

Policy Choice May Undercut Dollar

Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, agreed that the Fed could act quite differently after Powell’s term ends in May 2026.

According to Singh, the risks to the dollar may be skewed to the downside if policymakers turn more dovish. Novogratz warned this could erode the Fed’s independence and produce broader problems for the US economy, even as it lifts prices of risk assets.

Recent Moves Add Context

The Fed delivered its first rate cut of 25 basis points in September, a move markets largely expected. Reports show that Governor Waller had been urging a cut as early as July, which highlights the range of views inside the system.

Those past steps help explain why some investors now talk about how far policy could tilt and how big an impact that might have on crypto.

Featured image from Pixabay, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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UK’s New Digital ID Scheme ‘Target for Hackers’

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In brief

  • The UK government has unveiled a mandatory Digital ID scheme, set to be introduced by 2029 at the latest.
  • Some experts highlighted privacy and security risks, particularly if biometric data is included.
  • Other ID and verification experts suggest that a nationwide scheme consolidates personal data, making it less exposed to potential hacks.

The announcement of the UK’s nationwide Digital ID scheme has divided tech experts, with privacy advocates highlighting the dangers of mission creep and security risks.

British Prime Minister Sir Keir Starmer this week announced the mandatory Digital ID scheme, requiring anyone who wishes to work in the UK to carry digital identification on their mobile phones.

Unveiled by Starmer at the Global Progressive Action Conference in London, the Digital ID is expected to be rolled out by the end of the current Parliament, which is scheduled to close in 2029.

Yet figures working within the tech sector have mixed views on whether the scheme will be a net gain for data security.

“Putting all of someone’s identity, biometrics, and access to services into one central system doesn’t just create a bigger target for hackers—it means that if that system is breached, everyone is at risk,” said Rob Jardin, chief digital officer at privacy-first decentralized VPN platform NymVPN.

Jardin underlined the risk that would come from including any biometric data—which cannot be changed in the event of a hack—in the ID scheme, while pointing to the possibility of mission creep.

“A digital ID might start as a simple way to prove who you are, but over time, it could quietly expand into tracking where you go, what you do, or even controlling access to services,” he said.

How will the UK’s Digital ID work?

The digital ID is expected to include a person’s photo, name, date of birth and residency status.

The UK Government is considering ways of enabling non-smartphone users to participate in the scheme, and will be launching a three-month consultation later in the year on best practice for delivering the service. The consultation will explore whether additional information such as addresses should be included.

Speaking at the Global Progressive Action Conference, Starmer said that the scheme is necessary to reduce illegal immigration and, in particular, the numbers of people working illegally in the UK.

I know you’re worried about the level of illegal migration into this country.

Digital ID is another measure to make it tougher to work illegally here, making our borders more secure.

Ours is a fairer Britain, built on change, not division.

— Keir Starmer (@Keir_Starmer) September 26, 2025

“Digital ID is an enormous opportunity for the UK,” he said. “It will make it tougher to work illegally in this country, making our borders more secure.”

Members of opposition parties in the UK have criticized the plans, with Liberal Democrat leader Sir Ed Davey saying that the scheme would “add to our tax bills and bureaucracy, whilst doing next to nothing” to reduce the migrant boat crossings that have become a hot topic in England.

Addressing security concerns

While some tech experts have highlighted the potential security risks involved in the Digital ID scheme, others working in relevant areas suggested that a properly designed Digital ID system could end up being more secure than existing methods for identification.

“When security concerns are addressed with advanced cryptography and continuous monitoring, they create a more resilient national infrastructure,” said Cindy van Niekerk, CEO of UK-based ID and verification firm Umazi.

As an example, Van Niekerk suggested that digital ID will save the need to email a scan of your passport to service providers and/or prospective employers, something which can be exposed to hacks and data leaks.

“Digital ID eliminates this by using cryptographic credentials that prove identity without exposing personal data,” she told Decrypt. “Citizens control what information is shared and when, creating genuine privacy protection rather than the illusion of it.”

Elaborating on this point, van Niekerk said that UK citizen data is currently stored across “hundreds of insecure databases” in the public and private sector, and that an adequate Digital ID system would consolidate verification while distributing storage, reducing the risk of mass data breaches.

“Estonia’s digital ID system, which has been in operation since 2002, today has approximately 1.4 million users and in the 23 years, has only had one incident, but emerged stronger because its decentralised architecture prevented wholesale data loss,” she explained.



Decentralizing digital IDs

The example of Estonia could be instructive, since some experts argue that decentralization may be vital in delivering an ID scheme in a robust and secure way.

“Strong legal protections and transparency matter, but the real safeguard is building systems in a decentralized way—meaning no single authority controls all the data, and individuals always hold the keys to their own data,” said Jardin. “Done right, decentralised digital IDs could deliver convenience and trust without turning into a tool of surveillance we later regret.”

This emphasis on decentralization is something that van Niekerk largely agreed with, although she also underlined the important role that quantum computing could end up playing in any nationwide ID system.

“The UK can deploy quantum-resistant algorithms from day one, avoiding the billions of retrofitting costs other countries will face later,” she said.

She also explained that a decentralized architecture would enhance any quantum resilience the UK digital ID scheme could ultimately include.

“Distributed systems using post-quantum cryptography create multiple protection layers,” she said. “Even if one cryptographic method is compromised, redundant quantum-safe protocols maintain system integrity.”

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