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. Ault Capital Group Ault Blockchain, 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? Chainalysis's 2025 Global Adoption Index blockchain in financial services market 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. Cosmos SDK 200 chains in production zero hacks in over five years 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. 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. stepped down from Hyperscale Data (NYSE: GPUS) 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. B-Harvest Gravity DEX liquidity module acquired by Tendermint Xangle QuickNode Protofire 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. Don’t forget to like and share the story! This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYO This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYO This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYO business blogging program business blogging program

This story contains new, firsthand information uncovered by the writer.

The writer was physically present in relevant location(s) to this story. The location is also a prevalent aspect of this story be it news or otherwise.

Hot off the press! This story contains factual information about a recent event.

Cosmos

Why Ault Blockchain's Zero-Speculation Model Could Redefine How Layer 1 Networks Launch

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

$2M Backing and a Vision: How GAM3S.GG is Reshaping Web3 Gaming

(1/100) Crypto Countdown: Golem

A Research Report on the Trader $JOE DeFi Platform

07/03/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

01/06/2018: Biggest Stories in the Cryptosphere

$2M Backing and a Vision: How GAM3S.GG is Reshaping Web3 Gaming

(1/100) Crypto Countdown: Golem

A Research Report on the Trader $JOE DeFi Platform

07/03/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

01/06/2018: Biggest Stories in the Cryptosphere

Light-Mode

Classic

Newspaper

Minty

Dark-Mode

Neon Noir

Minty

HN StartUps