What happens when a diversified investment firm with roots in Wall Street and data infrastructure decides to build a blockchain from scratch, without selling a single token to the public? That is the question Ault Capital Group is forcing the industry to consider with the public testnet launch of Ault Blockchain, a Layer 1 network designed for trading, settlement, and institutional-grade onchain infrastructure.
The timing is deliberate. According to Chainalysis's 2025 Global Adoption Index, North America processed $2.3 trillion in cryptocurrency transaction value between July 2024 and June 2025. The blockchain in financial services market is forecasted to exceed $16 billion by 2026. Yet the actual blockchains built for institutional finance, rather than retrofitted for it, remain thin. Ault is positioning itself in that gap. But is the approach different enough to matter?
What Ault Blockchain Actually Is
At its core, Ault Blockchain is a Cosmos SDK-based Layer 1 with full Ethereum Virtual Machine (EVM) compatibility. Cosmos is an open-source framework used by over 200 chains in production, including networks operated by Ripple, Ondo Finance, and Japan's Progmat banking consortium. Think of Cosmos as a toolkit that lets developers build their own blockchain and connect it to others through the Inter-Blockchain Communication (IBC) protocol, which has zero hacks in over five years. EVM compatibility means any Ethereum smart contract runs on Ault without modification, giving developers access to the largest existing ecosystem of blockchain tools.
The network is governed by Ault DAO, structured as a Wyoming DAO LLC, one of the few legal frameworks in the United States that grants legal standing to a decentralized autonomous organization. This means Ault DAO can hold assets, enter contracts, and operate within a recognized legal wrapper. Onchain governance manages protocol parameters, validator participation, and upgrades.
The public testnet is now live for evaluating core network functionality, validator performance, and infrastructure design. An initial protocol security audit has been completed, with validator onboarding and broader ecosystem testing underway before mainnet.
No Token Sale, No Speculation. So How Does This Work?
This is where Ault Blockchain diverges from most Layer 1 launches. There will be no public token sale, no ICO, no presale rounds.
The native AULT token will be distributed exclusively through a protocol-controlled emissions schedule. Instead of buying tokens and hoping they appreciate, participants must contribute to the network's operation to receive them. That includes Proof-of-Stake validators who secure consensus and earn transaction fees, and "Licensed Mining Nodes," authorized to perform off-chain services like cryptographic randomness generation at launch.
Milton "Todd" Ault III, founder and executive chairman of Ault Capital Group, explains,
Ault Blockchain was built the opposite way most networks are built. We started with real financial use cases and then designed the blockchain to support them. Participation is based on defined roles and verifiable work, not speculation, with transparent economics that are meant to support long-term network health from day one.
This approach addresses one of the loudest criticisms in blockchain: that most Layer 1 token distributions benefit early insiders and speculators rather than the people building and securing the network. Whether this model holds under real market pressure is the question the testnet, and eventually mainnet, will answer.
Who Is Behind the Build?
Ault Capital Group is led by Milton "Todd" Ault III, a Wall Street veteran with over 30 years across equities, fixed income, and real estate. In mid-2025, Ault stepped down from Hyperscale Data (NYSE: GPUS) to focus on Ault Capital Group's portfolio spanning private credit, AI software, defense, and blockchain infrastructure.
The technical partner roster carries weight. B-Harvest, founded in 2018, is the primary development partner, known for building the Gravity DEX liquidity module for Cosmos Hub before being acquired by Tendermint. Xangle handles block explorers, QuickNode provides RPC infrastructure, and Protofire supports Safe-related tooling across EVM environments.
What Comes After the Testnet?
At mainnet genesis, Ault Blockchain will launch with core protocol modules, EVM compatibility, an initial validator set, and onchain governance. The post-launch roadmap includes spot trading on decentralized exchanges, lending services, and perpetuals trading. These are workloads being explored as the network matures, not confirmed timelines.
This phased approach mirrors what worked for ecosystems like Cosmos Hub itself, which expanded gradually from basic staking to IBC to DeFi applications over several years. Many Layer 1 projects have stumbled by shipping everything at once, and Ault appears to be taking the slower, more deliberate route.
Final Thoughts
Ault Blockchain's testnet launch is not a revolution. It is a calculated entry into a market moving toward institutional blockchain adoption but still lacking purpose-built Layer 1 infrastructure. The no-token-sale model, the licensed infrastructure framework, and the DAO LLC governance all signal a project built for a different audience than the typical crypto launch.
The real test comes at mainnet. A testnet proves the code works. It cannot prove whether validators will show up, developers will build, or institutions will trust a new chain with their capital. If Ault delivers on its roadmap and maintains the discipline of its emissions model, it has a shot at carving out real space in institutional blockchain. For now, the testnet is live, and the market is watching.
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