Monthly Archives: December 2025
Hong Kong Insurance Regulator Weighs Capital Charges on Crypto Exposure
Hong Kong’s insurance regulator is considering new capital rules that would impose a full risk charge on crypto assets while aligning stablecoin treatment with underlying fiat risk.
Hong Kong’s Insurance Authority is weighing a revised capital framework that would impose stricter requirements on insurers’ exposure to crypto assets, according to a proposal cited by Bloomberg. Under the draft rules, direct holdings of cryptocurrencies would attract a 100 percent risk charge, effectively requiring insurers to hold capital equal to their full exposure. The approach reflects a conservative stance toward digital assets within the insurance sector, even as Hong Kong promotes broader crypto market development.
Stablecoins would be treated differently under the proposal. Investments in regulated stablecoins would be assessed capital charges aligned with the risk profile of their underlying fiat currencies, provided the issuers fall within Hong Kong’s regulatory perimeter. This distinction signals a more nuanced view of crypto-related instruments, differentiating between volatile tokens and fiat-backed digital payment assets.
Regulatory Review and Consultation Timeline
The proposed measures are part of a wider review of Hong Kong’s risk-based capital regime, which the Insurance Authority began earlier this year. The regulator has indicated that the draft framework remains subject to revision and is expected to be released for public consultation between February and April. Following the consultation period, the proposals would be submitted for legislative consideration.
In a statement, the Insurance Authority said the review aims to support the long-term resilience of the insurance sector while taking account of evolving regulatory standards. The authority noted that its assessment includes capital treatment for stablecoins and crypto assets, reflecting their growing relevance to financial markets. Industry feedback is currently being gathered, suggesting potential adjustments before the framework is finalized.
Market Context and Competitive Implications
The move comes as Hong Kong continues to position itself as a regional hub for digital assets. In recent years, authorities have introduced licensing regimes for virtual asset trading platforms and advanced work on a stablecoin regulatory framework. The Securities and Futures Commission has also taken steps to enhance market liquidity by allowing licensed exchanges to access global order books.
For insurers, the proposed capital charges could limit direct participation in crypto markets, particularly compared with jurisdictions that have adopted more permissive approaches. At the same time, the differentiated treatment of stablecoins may encourage selective exposure tied to regulated payment and settlement use cases. The framework underscores Hong Kong’s effort to balance innovation with financial stability, aligning insurance regulation with its broader institutional approach to digital assets.
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Citi Stays Bullish on Crypto Stocks Despite Year-End Volatility
Citigroup reaffirmed its positive view on crypto-related equities despite sharp sector declines, citing long-term institutional adoption and resilient business models.
Citigroup said it remains constructive on crypto-related equities despite significant declines across digital asset markets toward the end of 2025. In a research note, the bank trimmed several price targets to reflect recent weakness but maintained positive ratings across much of the sector. Analysts said near-term volatility has not altered their longer-term view on institutional adoption and infrastructure-driven growth.
Bitcoin’s pullback has weighed on sentiment across crypto-linked stocks, prompting Citi to adjust expectations while keeping coverage intact. The bank framed the reset as valuation-driven rather than structural, noting that equity performance has lagged underlying progress in regulated market access, custody, and payments infrastructure.
Circle Remains Top Pick
Stablecoin issuer Circle remains Citi’s top pick, with analysts reiterating a $243 price target despite the stock’s sharp decline this quarter. Citi highlighted Circle’s position at the center of regulated dollar-based settlement activity and its exposure to growing institutional use of stablecoins in payments and treasury operations. The bank views stablecoins as a lower-volatility entry point into the crypto ecosystem compared with exchanges or miners.
Citi’s next preferred names include Bullish and Coinbase. The bank said Bullish is well-positioned to benefit from rising institutional participation, particularly in US markets, despite trimming its price target to reflect competitive and market pressures. Coinbase’s target was held steady, with analysts citing its scale, diversified revenue mix, and regulatory positioning as key strengths amid shifting market cycles.
Target Cuts Reflect Competitive Pressures
Other crypto-linked equities saw downward revisions, including Strategy and bitcoin miner Riot Platforms, following recent price declines. Citi said these adjustments reflect higher sensitivity to bitcoin price movements and operating leverage, rather than a deterioration in long-term fundamentals. Neutral-rated Gemini also saw its price target reduced, with the bank pointing to intensifying competition and margin pressure in the exchange sector.
Citi’s analysis underscores a broader institutional view that crypto equities remain a viable long-term allocation despite near-term volatility. The bank emphasized that consolidation, regulatory clarity, and differentiated business models will likely determine relative performance as digital asset markets mature.
Tezos Art Ecosystem Sees Institutional Momentum in 2025
The Tezos art ecosystem recorded strong institutional adoption and artist growth in 2025, driven by museum partnerships, global events, and NFT sales.
The Tezos art ecosystem ended 2025 with notable momentum, supported by increased institutional participation, global art events, and steady growth among artists using the blockchain. More than half a million NFTs were sold during the year, underscoring Tezos’ position as a specialized infrastructure for digital art within a competitive blockchain landscape. The network’s low transaction costs and established tooling continued to differentiate it from larger smart contract platforms focused on broader financial use cases.
Institutional Partnerships and Museum Adoption
Institutional engagement remained a central driver of growth. The Tezos Foundation expanded its partnership with the Museum of the Moving Image, transforming the Herbert S. Schlosser Media Wall into a year-long showcase for blockchain-based art. Since the initial exhibition in mid-2024, more than 243,000 visitors have been introduced to digital art through the program. The latest phase includes commissions for 12 artists using FA2 smart contracts and the launch of the FA2 Fellowship, aimed at educating artists and developers on blockchain-native creative tools.
This institutional presence reflects a broader trend among museums exploring blockchain as both a medium and an archival layer. Compared with speculative NFT cycles seen earlier in the decade, the Tezos approach has emphasized long-term collaboration, education, and curatorial involvement.
Global Events and Artist Participation
Tezos maintained a visible presence at major international art events throughout 2025. NFT Paris featured a live demonstration by digital art pioneer Kiki Picasso using a restored 1980s Quantel Paintbox, while the Paintboxed – Tezos World Tour brought the historic device to New York, Miami, Paris, and Basel. The largest gathering, Art on Tezos Berlin, drew more than 700 international visitors and showcased over 500 artists, highlighting intersections between art, technology, and artificial intelligence.
Education also remained a priority, with a strategic partnership announced in August with the Processing Foundation to promote software literacy in the arts. Several high-profile sales reinforced market validation, including acquisitions by the Francisco Carolinum museum and six-figure tez-denominated sales of generative and AI-based works.
Looking ahead, the extension of the MoMI partnership through 2027 positions the Tezos art ecosystem for continued institutional engagement. While competition among blockchains for cultural relevance remains intense, Tezos’ focus on museums, education, and artist-led experimentation has established a durable niche within the evolving digital art market.
Binance Weighs US Return as CZ Considers Stake Cut and Strategic Partnerships
Binance is exploring a potential return to the US market, considering changes to Binance.US ownership and compliance structure amid a shifting regulatory climate.
Binance is quietly laying the groundwork for a potential re-entry into the US market, reassessing its American strategy after years of regulatory retrenchment. According to a Bloomberg report, discussions include a possible recapitalization of Binance.US that could reduce founder Changpeng Zhao’s controlling stake, a move viewed internally as critical to resolving licensing and compliance barriers across several states.
Zhao, who stepped away from any formal role at Binance following his 2023 plea agreement with US authorities, remains a central figure in the exchange’s long-term direction. That agreement restricted his direct or indirect involvement in operations after regulators charged Binance and its founder with failing to maintain effective anti-money laundering controls. Despite this, Zhao’s majority ownership has continued to complicate Binance.US expansion, according to people familiar with the matter.
Regulatory Headwinds and Shifting US Climate
Binance.US has yet to recover from the regulatory crackdown that followed those charges. Once controlling an estimated 35% of US crypto trading volume at its peak, the platform has since seen its footprint sharply reduced. Multiple states revoked or declined to grant operating licenses, leaving Binance.US unable to operate in more than a dozen states and US territories.
However, the broader regulatory environment in Washington has begun to shift. The Trump administration has eased enforcement pressure, dropped several high-profile crypto-related lawsuits, and advanced legislation such as the GENIUS Act, which provides a clearer framework for stablecoins. Industry executives say these developments are prompting global crypto firms to reconsider the US as a viable growth market.
Zhao, recently pardoned by President Donald Trump, has publicly embraced the administration’s pro-crypto stance. Speaking earlier this month, he described the US as central to the industry’s future and signaled his desire to support efforts to position the country as a global crypto hub. Binance has maintained that its global operations and Binance.US remain independent, though it declined to comment on the reported restructuring talks.
Institutional Ties and Competitive Pressures
Alongside regulatory recalibration, Binance has been strengthening relationships with established financial institutions. Sources said the exchange has discussed deeper collaboration with BlackRock, which already offers a tokenized money-market fund used as collateral on Binance. Conversations have reportedly included new products and potential revenue-sharing structures, though BlackRock declined to comment.
Binance has also moved closer to World Liberty Financial, a crypto venture linked to Trump’s family, reflecting a broader strategy of aligning with influential institutional and political stakeholders. Internally, leadership adjustments underscore a focus on continuity, with co-founder Yi He promoted to co-CEO alongside Richard Teng.
As competitors such as Kraken and Gemini prepare for potential US listings and institutional participation grows through spot Bitcoin ETFs, Binance faces increasing pressure to secure a path back into the world’s largest capital market. Any return, however, is likely to hinge on sustained regulatory compliance and structural changes that satisfy state and federal authorities.
North Korea Accelerates Crypto Theft with Fewer, Larger Attacks in 2025
North Korean hackers stole more than $2 billion in cryptocurrency in 2025, marking a sharp rise in proceeds despite a decline in the number of attacks, according to Chainalysis.
North Korean-linked hackers significantly expanded their crypto theft operations in 2025, stealing more than $2 billion in digital assets, according to a new report from blockchain analytics firm Chainalysis. The figure represents a 51% increase from the previous year and brings the regime’s cumulative crypto proceeds to an estimated $6.7 billion since it began targeting the sector in 2016. The findings highlight the growing scale and sophistication of state-backed cybercrime within the digital asset market.
Despite the higher total haul, Chainalysis observed a sharp decline in the number of attacks, with incidents falling by roughly 74% year over year. Instead, North Korean operatives concentrated on fewer, high-impact breaches targeting major exchanges and custodial platforms rather than individual users or smaller decentralized finance protocols. In 2025, they accounted for 76% of all significant platform and exchange hacks, the highest share on record.
Shift Toward High-Impact Operations
The change in tactics reflects a deliberate move toward maximizing returns per operation. Chainalysis reported that the largest North Korean hack this year was roughly 1,000 times larger than the average crypto theft. A February breach at Bybit alone resulted in losses of approximately $1.5 billion, accounting for nearly three-quarters of the regime’s total annual haul.
Rather than relying solely on external exploits, North Korean actors increasingly embedded operatives within crypto companies to gain privileged access. Security researchers estimate that between 30% and 40% of job applications received by crypto firms may be linked to North Korean operatives attempting to infiltrate internal systems. This insider approach allows attackers to bypass traditional perimeter defenses and execute large-scale thefts with minimal detection.
Evolving Social Engineering and Institutional Risk
Chainalysis also documented a shift in social engineering techniques. Operatives have begun impersonating recruiters from well-known crypto and artificial intelligence firms, orchestrating fake hiring processes to harvest credentials, source code, and network access from unsuspecting victims. These efforts often leverage global freelance platforms, enabling attackers to operate across borders with relative ease.
At the executive level, similar tactics include outreach from purported strategic investors or acquisition partners, designed to gain sensitive information. Former FBI agent Chris Wong of TRM Labs described the activity as more than a cybersecurity issue, noting its implications for sanctions enforcement, financial crime prevention, and national security.
The report underscores growing institutional concerns as regulators and exchanges face heightened pressure to strengthen internal controls. As crypto markets mature and attract more institutional capital, the concentration of assets within centralized platforms continues to present lucrative targets for state-backed actors.
VivoPower Targets $300M Ripple Share Deal, Expanding XRP Exposure
VivoPower is partnering with Lean Ventures to source $300 million in Ripple Labs equity, offering indirect exposure to nearly $1 billion worth of XRP for South Korean investors.
Nasdaq-listed VivoPower is deepening its XRP-linked strategy through a joint venture designed to acquire significant equity stakes in Ripple Labs. The company said its digital asset arm, Vivo Federation, has been engaged by South Korea-based asset manager Lean Ventures to source an initial $300 million in Ripple Labs shares. Based on current XRP prices, VivoPower estimates the exposure represents roughly 450 million XRP tokens, valued at close to $900 million.
The structure provides indirect exposure to XRP without purchasing the token directly. Lean Ventures plans to establish a dedicated investment vehicle that will hold Ripple Labs equity sourced by Vivo Federation, targeting institutional and qualified retail investors in South Korea. The country is one of XRP’s most active markets, with deep retail participation and a growing base of regulated digital asset investment products. VivoPower said it has received approval from Ripple to acquire an initial tranche of preferred shares and is negotiating additional purchases from existing institutional holders.
Institutional Structure and Economics
VivoPower emphasized that it will not deploy its own balance sheet capital for the initiative. Instead, the firm expects to generate revenue through management fees and performance-based carry, targeting approximately $75 million in net economic returns over three years if the $300 million mandate is fully executed. The structure reflects a broader trend among publicly listed firms seeking fee-based exposure to digital asset growth rather than direct price risk.
Neither VivoPower nor Ripple disclosed transaction-level details, citing regulatory and legal constraints around market-sensitive information. Ripple declined to comment on the arrangement. The absence of direct token purchases may also appeal to institutions navigating custody, accounting, and regulatory considerations tied to holding cryptocurrencies outright.
XRP-Centric Strategy in a Competitive Market
The joint venture builds on VivoPower’s recent pivot toward an XRP-focused treasury and investment strategy. Earlier this year, the company raised $121 million in a private placement led by Saudi investor Abdulaziz bin Turki Abdulaziz Al Saud, positioning itself as one of the first public companies to center its digital asset exposure on XRP rather than bitcoin or ether. VivoPower has since allocated capital to yield-generating XRP strategies, including a $100 million deployment through Flare’s FAssets system, and adopted Ripple’s RLUSD stablecoin for treasury operations.
The move comes amid intensifying competition among digital asset firms to attract institutional capital as regulatory clarity improves across major markets. By targeting South Korea and structuring exposure through equity rather than tokens, VivoPower is seeking to differentiate its approach while aligning with institutional risk frameworks and regional demand dynamics.
Coinbase Report Flags Generational Shift as Young Investors Turn to Crypto
A new Coinbase-Ipsos survey shows younger US investors allocating significantly more of their portfolios to crypto and other non-traditional assets, signaling growing dissatisfaction with legacy finance.
A new report from Coinbase suggests a widening generational divide in how Americans invest, with younger cohorts increasingly favoring crypto and other non-traditional assets over legacy financial products. Coinbase CEO Brian Armstrong said the findings highlight a perception among younger Americans that traditional finance no longer offers a viable path to wealth creation.
The “State of Crypto” survey, conducted by Ipsos in the fourth quarter among 4,350 US adults, shows stock ownership remains relatively consistent across age groups. However, portfolio composition differs sharply. Younger investors report allocating about 25 percent of their holdings to non-traditional assets such as cryptocurrencies, derivatives, and private investments, compared with just 8 percent among older investors.
Portfolio Allocation and Trading Behavior
Trading activity also diverges along generational lines. Nearly 30 percent of younger investors say they trade at least weekly, versus 10 percent of older respondents. Use of higher-risk strategies is more common as well, with younger investors more likely to employ margin and seek higher returns through volatile assets.
Demand for broader market access is another differentiator. More than 60 percent of younger respondents expressed interest in round-the-clock trading for stocks, reflecting expectations shaped by crypto markets that operate continuously. Interest in crypto derivatives, leverage, and decentralized finance lending also remains elevated among this group.
From an institutional perspective, the data underscores how market structure and product design may need to adapt as younger investors enter their prime earning and investing years. Platforms offering multi-asset exposure and flexible trading hours appear better aligned with these evolving preferences.
Access, Perception, and Alternative Channels
The report points to access constraints as a key driver of behavior. Nearly three-quarters of younger adults believe it is harder for their generation to build wealth through traditional means, compared with just over half of older respondents. Younger investors are also twice as likely to own crypto, reinforcing the role of digital assets as a perceived alternative route to financial mobility.
Information sources are shifting as well. Younger investors increasingly rely on social platforms, online communities, and peer networks rather than traditional financial advisers. About two-thirds said they would consider copy or social trading, compared with less than one-third of older investors.
Armstrong framed the findings as evidence of structural shortcomings in the existing financial system. For financial institutions and product developers, the survey highlights rising demand for risk-tiered offerings, digital-first platforms, and continuous market access as competition intensifies for the next generation of investors.
HashKey Shares See Volatility after $206M Hong Kong IPO
HashKey Holdings made its public market debut in Hong Kong following a $206 million IPO, with shares experiencing sharp swings amid heavy investor demand and cautious trading.
HashKey Holdings, operator of Hong Kong’s largest licensed cryptocurrency exchange, debuted on the Stock Exchange of Hong Kong after completing a $206 million initial public offering. Shares opened at HK$6.70 on the main board, giving the company public market exposure at a time when Asian regulators are tightening oversight of digital asset platforms while encouraging compliant growth.
The listing positions HashKey as the first major Asia-based digital asset firm to go public via a Hong Kong IPO. Management described the milestone as a foundation for global expansion and long-term strategy, underscoring the exchange’s emphasis on regulatory alignment in one of the world’s most closely watched financial centers.
Oversubscription Meets Early Volatility
Despite strong demand during the offering, trading on the first day proved uneven. HashKey sold 240 million shares, with the Hong Kong public tranche oversubscribed by roughly 394 times and the international placement covered about 5.5 times. Cornerstone investors included global asset managers such as Fidelity, UBS Asset Management Singapore, and CDH, reflecting institutional interest in regulated crypto infrastructure.
In early trading, the stock briefly rose around 5% above its IPO price before reversing course and falling below the offer level. Shares later stabilized slightly under the IPO price during afternoon trading, highlighting cautious sentiment as investors assessed valuation, revenue durability, and market conditions. The price action mirrored recent listings in the technology and digital asset sectors, where heavy demand at issuance has not always translated into sustained first-day gains.
Institutional and Market Context
HashKey’s debut comes as Hong Kong continues to position itself as a regulated hub for digital assets, contrasting with tighter enforcement cycles seen in other jurisdictions over the past several years. The city has rolled out a licensing framework for exchanges and custodians, aiming to attract institutional capital while maintaining investor protection standards.
Globally, crypto-related IPOs have gradually resumed in 2025, following a prolonged slowdown after market dislocations earlier in the decade. Stablecoin issuer Circle and exchanges such as Bullish and Gemini have either completed or advanced public market plans, while Kraken has confidentially filed for a potential listing. Investors are increasingly differentiating between firms based on compliance posture, geographic footprint, and revenue diversification rather than broad sector exposure.
For HashKey, public market scrutiny is expected to intensify focus on infrastructure investment, security, and governance. Speaking at the listing ceremony, the company’s leadership emphasized compliance as central to sustainable growth, reflecting broader institutional expectations for crypto firms operating within traditional capital markets.
While early volatility underscored near-term uncertainty, HashKey’s IPO marks a significant test case for crypto equity listings in Asia. Its performance may shape investor appetite for similar offerings as digital asset companies continue to seek capital through regulated public markets.
Grayscale Maps Institutional Crypto Investment Themes for 2026
Grayscale says growing regulatory clarity and macroeconomic pressures are positioning digital assets for deeper institutional adoption in 2026, reshaping how capital enters crypto markets.
Grayscale said digital asset markets are entering an institutional phase in 2026, supported by clearer regulation and sustained macroeconomic demand. In its annual outlook, the asset manager argued that crypto is moving beyond cyclical retail-driven booms toward steadier capital inflows tied more closely to traditional financial markets. As a result, the firm believes the historical four-year Bitcoin halving cycle may be losing its predictive power.
The report frames 2026 as a year when public blockchain infrastructure becomes more integrated into mainstream finance. Grayscale cited the expansion of regulated investment products and improving market structure as catalysts for broader institutional participation across Bitcoin, Ether, and related ecosystems.
Macro and Regulatory Drivers
Grayscale’s outlook rests on two structural forces shaping investor behavior. First, it expects ongoing concerns around public debt, fiscal deficits, and fiat currency debasement to sustain demand for alternative stores of value. Bitcoin and Ether, which the firm described as scarce digital commodities with transparent supply schedules, may increasingly function as portfolio hedges rather than speculative trades.
The firm also highlighted Bitcoin’s fixed issuance profile, including the expected mining of the 20 millionth coin in early 2026, as a differentiator from discretionary monetary systems. That predictability, Grayscale argued, resonates with institutions seeking long-duration assets with clear supply constraints.
Second, regulatory clarity is accelerating institutional engagement with blockchain technology. Grayscale pointed to the approval of spot crypto exchange-traded products, stablecoin legislation, and expectations for comprehensive US market structure rules as key developments. These measures lower operational and compliance barriers, enabling traditional asset managers, banks, and corporates to transact and deploy capital on-chain.
Investment Themes Shaping 2026
Against this backdrop, Grayscale outlined 10 investment themes it expects to influence crypto markets in 2026. On the macro and market structure side, the firm sees continued demand for Bitcoin, Ether, and select privacy-focused assets, alongside growing use of stablecoins in payments, settlement, derivatives collateral, and treasury operations.
Asset tokenization is another focal point, with Grayscale expecting equities, bonds, and other securities to increasingly migrate to public blockchains as regulation and infrastructure mature. That shift could blur the line between traditional and on-chain finance, particularly for institutional issuers and investors.
On the technology and infrastructure front, the firm expects decentralized finance lending to expand as liquidity deepens and regulatory frameworks improve. It also emphasized a growing focus on sustainable protocol revenues, noting that institutions are paying closer attention to fundamentals such as transaction fees and network usage.
Grayscale highlighted next-generation blockchain infrastructure, staking adoption, and the convergence of blockchain and artificial intelligence as longer-term growth areas. At the same time, it downplayed the near-term impact of quantum computing risks and digital asset treasury vehicles, arguing neither is likely to materially influence markets in 2026.
Overall, Grayscale sees institutional capital, clearer rules, and practical use cases as the defining forces shaping the next phase of crypto markets.
Bhutan Taps Bitcoin Reserves to Fund Mindfulness City
Bhutan plans to allocate 10,000 bitcoin from its national reserves to support development of Gelephu Mindfulness City. The move formalizes bitcoin’s role in the country’s long-term economic strategy.
Bhutan said it will allocate 10,000 Bitcoin from its national holdings to help finance the development of Gelephu Mindfulness City, a special administrative region intended to serve as a new economic hub. The project, launched in 2024 and located in southern Bhutan near the Indian border, is designed to attract investment across finance, technology, tourism, healthcare, agriculture, and green energy. Officials have positioned the initiative as a response to youth outmigration and limited domestic employment opportunities.
The allocation represents a substantial share of Bhutan’s estimated Bitcoin reserves. Data cited by the government suggests the country holds roughly 11,286 Bitcoin, valued at just under $1 billion at current prices, largely accumulated through state-backed mining operations. That would place Bhutan among the largest known sovereign holders of Bitcoin, behind only a small group of countries.
Bitcoin as a Development Asset
Authorities said the Bitcoin earmarked for the city will be managed under a risk-controlled framework that prioritizes capital preservation. Proposed uses include long-term holding strategies and limited treasury-style deployments intended to support development without forcing large asset sales. Officials emphasized that governance, oversight, and transparency will guide any use of the reserves.
The Gelephu project offers regulatory flexibility for crypto and fintech firms and is expected to play a role in expanding Bhutan’s Bitcoin mining footprint, which relies heavily on renewable hydropower. The city spans roughly 10 percent of the country’s land area and is intended to be built in phases over two decades, underscoring the long time horizon of the strategy.
By linking digital asset reserves to physical infrastructure development, Bhutan is taking an approach that remains uncommon among sovereigns. Most governments that hold or seize Bitcoin treat it as a passive reserve or liquidate it outright, rather than integrating it into long-term planning.
Institutional and Regional Context
Bhutan’s Bitcoin strategy sits within a broader effort to diversify the economy while preserving its development philosophy, which emphasizes sustainability and social equity. Officials have framed Gelephu Mindfulness City as a shared national project, with landowners effectively participating in its success through a new land policy aimed at limiting inequality.
The city already supports crypto-based payments for merchants and tourism services and has introduced a sovereign-backed digital token linked to physical gold. These measures reflect a broader attempt to position Bhutan as a controlled testing ground for digital finance within a tightly governed framework.
Regionally, the project is envisioned as an economic corridor connecting South and Southeast Asia, giving Bhutan a differentiated role despite its small size. From a competitive standpoint, the initiative places the country alongside a handful of jurisdictions experimenting with crypto-friendly development zones, though on a smaller and more centralized scale. Whether the model proves durable will depend on execution, governance discipline, and the stability of digital asset markets over time.
Coinbase and Robinhood Join US Tech Force Initiative
Coinbase and Robinhood are among nearly 30 private sector partners contributing talent to the US Tech Force, a two-year program deploying engineers to federal agencies.
The White House, on December 15, launched the US Tech Force, a two-year program that will deploy approximately 1,000 engineers and technology specialists across federal agencies to develop AI infrastructure and support other digital initiatives.
Coinbase and Robinhood are among nearly 30 private sector partners, including tech giants such as OpenAI, Nvidia, and Microsoft, participating in the initiative. The program aims to leverage industry expertise to modernize government systems while providing participants with structured career pathways.
Join an elite group of technologists to transform the federal government through modern software development. Go to https://t.co/Jv6v8D7k3i to apply today pic.twitter.com/GxD3MxaXQJ
— US Tech Force (@USTechForce) December 15, 2025
Roles, Placement, and Compensation
Participants in the program will be placed in teams reporting directly to agency leadership and will receive technical training from partner firms.
Roles cover software engineering, AI, cybersecurity, and data analytics, supporting departments such as Defense, Treasury, Health and Human Services, and the Internal Revenue Service. Annual compensation ranges from $150,000 to $200,000, with federal benefits including health coverage, retirement plans, and performance-based awards.
Institutional and Industry Context
The initiative reflects an evolving relationship between the federal government and the private sector, including crypto firms, which are increasingly recognized as sources of technical expertise. Industry observers noted that decentralized principles (transparency, accountability, and open architectures) can be integrated into federal AI deployments without undermining public institutions.
After completing the two-year term, participants may transition into private sector partner roles, continue government service, or apply the experience to other career opportunities. This highlights the program’s dual aim of talent development and government modernization.
Bitwise CIO Argues Bitcoin Cycle Is Breaking Down
Bitwise CIO Matt Hougan said Bitcoin is likely to depart from its historical four-year cycle, citing structural changes in macro conditions and institutional adoption.
Bitwise Chief Investment Officer Matt Hougan believes Bitcoin may no longer follow its traditional four-year market cycle, arguing that structural changes in macroeconomic conditions and market composition are altering the asset’s behavior. In a client note released Monday, Hougan said the forces that historically drove sharp post-peak drawdowns appear to be weakening, even as Bitcoin has pulled back significantly from its October highs.
Bitcoin has typically experienced three years of gains followed by a steep correction, a pattern closely associated with its halving cycle. With Bitcoin down more than 30% from its recent peak and many altcoins underperforming, a bearish outlook for 2026 remains widely held. Hougan, however, said that view may overstate the relevance of past cycles in a market that now includes regulated investment products and deeper institutional participation.
Shifting Macro and Market Structure
Hougan pointed to several macro and structural factors that he believes are reshaping Bitcoin’s risk profile. The impact of successive Bitcoin halvings has diminished over time as new supply becomes less significant relative to total circulating supply. He also cited expectations for lower interest rates in 2026, contrasting with tightening cycles that coincided with prior market downturns.
Another factor is the reduced role of leverage-driven dislocations. Bitwise CIO noted that large liquidations earlier this year contributed to a market reset, potentially limiting the scale of forced selling going forward. He also referenced gradual regulatory progress, which has reduced uncertainty for some institutional participants, particularly in the United States.
Institutional adoption remains central to Bitwise’s thesis. Hougan said large wealth management platforms and financial institutions are increasingly allocating to digital assets, supported by the growth of exchange-traded funds and custody infrastructure. He characterized this shift as incremental rather than speculative, with longer investment horizons than previous retail-driven cycles.
Volatility and Correlation Trends
Hougan also highlighted declining volatility as a notable trend. He said Bitcoin’s price fluctuations have moderated over time and were lower than some high-growth equities during parts of 2025. According to Hougan, broader ownership and the rise of regulated investment vehicles have contributed to more stable trading behavior.
In addition, he argued that Bitcoin’s correlation with equities could weaken further. While Bitcoin has often moved alongside risk assets, Hougan said rolling correlation data suggests the relationship has been inconsistent and often overstated. He expects crypto-specific factors, including regulation and capital flows, to play a larger role in performance.
Hougan framed these dynamics as relevant for portfolio construction rather than short-term trading. While he acknowledged that forecasts remain uncertain, his comments reflect a broader reassessment among asset managers of how Bitcoin fits within institutional portfolios as the market matures.
UK FCA Opens Consultation on Crypto Rules for Markets and DeFi
The UK Financial Conduct Authority has launched consultations on proposed rules for crypto exchanges, lending, staking, and DeFi. Feedback is due by February 12, 2026, as the UK advances a comprehensive regulatory framework.
The UK Financial Conduct Authority has launched a series of consultations on proposed rules for digital asset markets, signaling a further step toward a comprehensive regulatory regime for crypto activities. The proposals span three consultation papers and cover crypto exchanges, intermediaries, staking, lending and borrowing, market abuse, disclosures, and decentralized finance. Industry feedback will be accepted through February 12, 2026.
The FCA said the proposals are designed to balance consumer protection with innovation, emphasizing transparency and responsible conduct rather than eliminating risk. Officials stressed that clearer standards are intended to help market participants and consumers better understand the risks associated with crypto assets. The consultations build on earlier measures focused on financial promotions and anti-money laundering compliance.
From Promotions to Market Structure
The latest proposals move the UK closer to establishing full market structure rules for crypto, aligning oversight more closely with traditional financial markets. Under the framework, crypto trading platforms would face clearer requirements around asset admissions, disclosures, and trading integrity. Measures addressing insider dealing and market manipulation would also be introduced to improve market confidence.
Staking services are a central focus, with the FCA seeking views on how firms should communicate risks associated with yield-bearing products that lock up customer assets. Crypto lending and borrowing are also included, with proposed safeguards aimed at protecting both borrowers and lenders in volatile market conditions. The regulator is assessing how these activities compare to regulated financial products without presuming identical treatment.
Decentralized finance presents a more complex challenge. The FCA is consulting on whether DeFi activities, such as trading, lending, and borrowing, conducted without intermediaries should fall under similar regulatory expectations as centralized services. The approach reflects growing institutional interest in DeFi alongside concerns about governance, accountability, and consumer exposure.
Policy Alignment and Market Implications
The consultations follow the UK government’s announcement that it plans to introduce legislation extending existing financial services laws to crypto assets by 2027. Under those plans, crypto firms would be brought formally within the FCA’s regulatory perimeter, providing a statutory foundation for the rules now under discussion.
For market participants, the proposals suggest a gradual shift toward clearer obligations and supervisory expectations. Institutional firms may view the process as a step toward regulatory certainty, while smaller crypto businesses could face higher compliance costs. The FCA cautioned that, despite the consultations, most crypto activities remain largely unregulated for now, underscoring the transitional nature of the current framework.
Visa Launches Global Stablecoins Advisory Practice
Visa has introduced a global Stablecoins Advisory Practice to help banks, fintechs, and merchants integrate stablecoins amid rising institutional adoption and regulatory clarity.
Visa has unveiled a new Stablecoins Advisory Practice within its Visa Consulting & Analytics unit, signaling a deeper institutional push into stablecoin-based payment infrastructure. The initiative is designed to provide banks, fintechs, merchants, and enterprises with strategic guidance on market fit, implementation, and use-case development as stablecoins move closer to mainstream financial adoption. The launch comes as stablecoin market capitalization exceeds $250 billion and regulatory frameworks continue to take shape globally.
According to Visa, settlement volumes linked to stablecoins have accelerated across its network, reaching a $3.5 billion annualized run rate as of late November. The company said demand for advisory services has grown as financial institutions assess how stablecoins could enhance cross-border payments, treasury operations, and settlement efficiency while remaining compliant with emerging regulatory standards.
Institutional Strategy and Market Context
Visa Consulting & Analytics is positioning the new practice as an extension of its broader payments advisory services, combining crypto-specific expertise with traditional payments strategy. The offering includes training programs, market entry planning, use-case sizing, and technical enablement for stablecoin integration. Visa executives framed the initiative as a response to client demand rather than a speculative expansion into digital assets.
Financial institutions exploring stablecoins face a fragmented landscape shaped by jurisdictional regulation, evolving standards, and operational risk considerations. By centralizing advisory capabilities, Visa aims to help clients evaluate whether stablecoins can reduce costs, improve settlement speed, or unlock new payment flows without disrupting existing infrastructure. The approach reflects a wider industry trend toward embedding blockchain-based rails into established financial systems rather than replacing them outright.
Early participants include credit unions and regional banks evaluating stablecoins as part of long-term payments strategy. Executives from Navy Federal Credit Union and Pathward cited potential benefits around speed, cost efficiency, and innovation, while emphasizing a cautious, member-focused evaluation process. These use cases underscore how traditional financial institutions are assessing stablecoins as incremental infrastructure upgrades rather than standalone products.
Competitive Landscape and Long-Term Implications
Visa’s advisory launch places it alongside other global financial firms expanding stablecoin-related services beyond experimentation. Major banks, asset managers, and payment networks have increasingly moved from pilot programs toward operational deployments, particularly for cross-border settlement and treasury functions. Visa itself began piloting stablecoin settlement in 2023 and now supports more than 130 stablecoin-linked card programs across over 40 countries.
The company is also expanding Visa Direct pilots that allow qualified businesses in select jurisdictions to pre-fund cross-border payments using stablecoins and deliver payouts directly to digital wallets. These initiatives suggest stablecoins are becoming a complementary layer within global payments rather than a parallel system.
By formalizing its advisory practice, Visa is positioning itself as both an infrastructure provider and a strategic intermediary as stablecoins mature. The move reflects growing institutional recognition that stablecoins are no longer a niche crypto product but an emerging component of regulated financial markets, requiring structured guidance, risk management, and integration with existing payment ecosystems.
JPMorgan Launches Tokenized Money-Market Fund on Ethereum
JPMorgan Asset Management has launched its first tokenized money-market fund on Ethereum, signaling deeper institutional adoption of blockchain-based investment infrastructure.
JPMorgan Chase’s asset-management division has launched its first tokenized money-market fund, marking a significant step by a major global bank into blockchain-based investment products. The fund, called the My OnChain Net Yield Fund, or MONY, is built on the Ethereum blockchain and supported by JPMorgan’s Kinexys Digital Assets platform. The bank seeded the fund with $100 million of its own capital and opened access to qualified investors this week.
The private fund is available to individuals with at least $5 million in investable assets and institutions with a minimum of $25 million, with a $1 million investment threshold. Investors subscribe through JPMorgan’s Morgan Money platform and receive tokenized fund shares directly into their digital wallets. Like traditional money-market funds, MONY holds short-term, high-quality debt securities and accrues income daily, while offering on-chain settlement and ownership.
Tokenization Meets Traditional Liquidity Products
Money-market funds remain a cornerstone of institutional liquidity management, with total assets reaching approximately $7.7 trillion this year. JPMorgan’s move reflects growing demand from clients seeking yield-generating instruments that operate fully on blockchain rails. Subscriptions and redemptions can be completed using either cash or the USDC stablecoin, integrating traditional fund mechanics with digital settlement.
For crypto-native investors, tokenized money-market funds address a longstanding inefficiency by allowing capital to remain on-chain while earning yield. Stablecoins, which have grown to a combined market value exceeding $300 billion, typically do not distribute interest to holders. Tokenized funds offer an alternative that preserves blockchain-based custody while delivering returns similar to conventional cash management products.
Institutional Momentum and Competitive Landscape
JPMorgan’s launch comes amid broader institutional momentum following recent US legislation establishing a regulatory framework for tokenized financial instruments. Asset managers and banks have accelerated efforts to bring traditional products onto blockchain infrastructure, citing faster settlement, improved transparency, and operational efficiencies. Tokenized funds can also be used as collateral across certain digital asset venues, expanding their functional utility.
The competitive field is already taking shape. BlackRock operates the largest tokenized money-market fund, with more than $1.8 billion in assets, while Goldman Sachs and Bank of New York Mellon are developing tokenized fund ownership solutions with major asset managers. JPMorgan itself has previously tokenized private equity products and expanded its blockchain-based settlement capabilities for institutional clients.
The MONY fund underscores how established financial institutions are integrating blockchain technology into familiar investment vehicles rather than replacing them. By anchoring tokenization within regulated fund structures, firms like JPMorgan are positioning digital assets as an extension of existing capital markets infrastructure. The approach reflects a measured shift toward blockchain adoption, driven by client demand, regulatory clarity, and competitive pressure among global asset managers.