Monthly Review October 2026

October's most significant event in the crypto markets was the Binance hack, with the company initially estimating its total impact at approximately $6.3 billion. The incident, disclosed at the end of the month, brought the security of crypto asset custody and service providers' risk management into focus across the industry.

Market conditions were also uncertain in October. Bitcoin's price fell from around $83,600 at the start of the month to around $77,400 at month-end, while institutional investor demand fluctuated sharply. Meanwhile, banks and payment companies continued developing their blockchain-based services. Other key developments included the planned acquisition of Saldo Bank by Kraken's parent company, the launch of HSBC's stablecoin in Hong Kong and Solana's Alpenglow upgrade.

              
​Binance's multibillion-dollar hack was October's most significant event
The Binance hack emerged as October's most significant crypto news story. According to a preliminary estimate published on 30 October by the company, one of the world's largest cryptocurrency exchanges, the incident involved approximately $6.3 billion in crypto assets. The scale of the hack put security and risk management at centralised service providers at the centre of attention across the crypto market.
Binance's preliminary investigation suggested that the attacker may have gained access to its internal systems through an employee's compromised computer and made unauthorised withdrawals. The company said it had found no evidence that wallet private keys had been leaked. The sequence of events was still under investigation.
Binance said it had worked with its partners to freeze approximately $3 billion in assets linked to the incident. However, freezing assets does not mean they have been recovered. The company pledged to cover all losses through its SAFU fund and its own resources, and to publish a detailed technical report once the investigation was complete.
Following the hack, Binance initially suspended deposits and withdrawals. According to the latest update, deposits had resumed, but withdrawals remained suspended while its security systems were being upgraded.
The significance of the incident extended beyond a single exchange. Banks and payment companies continued developing their crypto services in October, but the Binance case highlighted a fundamental requirement for the entire industry: customer trust depends on secure custody, effective internal controls and the ability to manage disruptions. The incident's ultimate financial impact and the outcome of efforts to recover the funds remained unclear at the time of writing.
​Crypto markets faced downward pressure in October
Following September's upward trend, October brought uncertainty to crypto markets. Bitcoin began the month at around $83,600 and briefly rose above $87,000 in the first few days of October. The price fell below $82,000 on 8 October, and Bitcoin ended the month at around $77,400. Overall, Bitcoin's US dollar price fell by approximately 7.3% in October.
Higher energy costs, elevated bond yields and inflation concerns weighed on markets. These factors weakened risk appetite and served as a reminder of how closely short-term cryptocurrency performance can follow broader financial markets.
​Bitcoin ETF flows fluctuated sharply
Flows into and out of US spot Bitcoin ETFs were volatile in October. Substantial capital briefly returned to the funds in the second half of the month, but strong inflows were once again followed by sizeable redemptions.
Over the three trading days from 19 to 21 October, the funds attracted approximately $1.07 billion. On Thursday, 22 October, the direction reversed, with approximately $636 million flowing out.
These fluctuations reflected uncertainty among institutional investors. ETFs have become an established channel for investing in Bitcoin, but demand through these funds can change quickly as the market outlook shifts. 
​Kraken's parent company agreed to acquire Saldo Bank
Payward, the parent company of crypto exchange Kraken, announced on 14 October that it had signed a binding agreement to acquire the Finnish company Saldo Finance Oy. Its subsidiary, Saldo Bank, operates under a banking licence issued in Lithuania and provides services in Finland, Sweden and Germany, among other markets.
The acquisition aims to expand Payward's banking services in Europe. Saldo Bank's infrastructure would support the provision of interest-bearing deposits, loans, payment cards and SEPA payments to European customers. The deal would also strengthen the company's ability to bring crypto services and traditional banking services together.
In Finland, Saldo Bank already offers term deposits, consumer loans and business loans. The acquisition would therefore give Payward not only a banking licence but also existing business operations and the infrastructure needed to deliver services. This could accelerate new service launches compared with building the entire system from scratch.
The acquisition is expected to close in 2027, subject to regulatory approvals and other customary closing conditions. The planned deal illustrates how crypto companies are seeking to expand beyond trading into a broader range of financial services.
​HSBC launched a Hong Kong dollar stablecoin
HSBC announced the launch of its first stablecoin, HSBC RedCoin, on 23 October. The Hong Kong dollar-pegged stablecoin was introduced through the bank's PayMe service, which has approximately 3.3 million users.
According to HSBC, RedCoin can be used to pay more than 100,000 merchants and make instant transfers to friends and family.
The launch is a concrete example of stablecoins becoming part of consumer banking and payment services. Blockchain-based money becomes accessible through a familiar payment app, potentially lowering the barrier to adopting the new technology.
​Solana activated the Alpenglow upgrade
Alpenglow, one of Solana's key technical upgrades, went live on the mainnet on 21 October. The upgrade changes the network's consensus mechanism, the process through which network participants reach agreement on transactions.
Alpenglow represents a significant change to Solana's underlying architecture. It aims to reduce the time needed for transactions to become final from approximately 12.8 seconds to around 150 milliseconds.
For users, faster finality can mean shorter waiting times when making wallet transfers or using applications. According to Solana, signing and sending transactions remained unchanged, so the upgrade primarily affected the network's underlying technology. This allows technical improvements to be introduced without requiring ordinary users to take any additional steps.
Faster finality is particularly important for payments, trading and other applications where users need prompt certainty that a transaction has been completed. The upgrade showed that technical development across blockchain networks continues even during periods of weaker market performance.
​Mastercard develops risk management tools for stablecoin payments
In October, Mastercard introduced Stablecoin Security, a solution designed to help financial institutions identify risks associated with stablecoin payments.
The solution combines payment and blockchain data. It can be used to assess the origin of funds and risk factors related to fraud, scams and sanctions before a payment is completed. Its initial partners include Borderless.xyz and Keyrails.
Mastercard's initiative highlights the importance of risk management as stablecoin use expands. Alongside fast transfers, banks and payment service providers need tools that allow them to assess transactions within their existing monitoring processes.
​Summary
Binance's multibillion-dollar hack emerged as October's most significant event. Its scale, the suspension of withdrawals and uncertainty surrounding the recovery of funds made security a central topic of discussion across the crypto market.
The month was also marked by downward price pressure and fluctuating ETF flows. Bitcoin's recovery attempts were short-lived, while inflation and interest rate concerns constrained investors' risk appetite.
Meanwhile, the industry's services continued to develop. Kraken's parent company agreed to acquire Saldo Bank, and HSBC introduced a stablecoin through a consumer payment app. Solana's Alpenglow upgrade, in turn, represented progress in blockchain performance.
October showed that the uses of cryptocurrencies and blockchain technology continue to expand. However, the Binance case served as a reminder that the industry's sustainable growth depends on the security of customer assets and trust in service providers.