Bitcoin holders have experienced over $4.5 billion in realized losses following the cryptocurrency’s dramatic decline from above $120,000 to below $90,000, which marks the highest level of capitulation since the 2022 bear market.

The Bitcoin price prediction indicator shows that the price might be bracing for another drop below $80k because the last time this much realized losses occurred in Bitcoin, the price dropped more than 50% to $28,000 from $69k.

Bitcoin Capital Flight Sees ETFs Bleed $1.33B in Single Week

The exodus from Bitcoin continues through institutional channels, with U.S.-based Bitcoin ETFs recording $1.33 billion in net outflows over one week, the largest withdrawal since February 2025.

This substantial capital flight shows weakening institutional confidence in the cryptocurrency’s near-term prospects.

Adding to the bearish sentiment, stablecoin market capitalization has contracted significantly.

According to CryptoQuant researcher Darkfost, the Ethereum-based stablecoin total market cap declined by $7 billion in just seven days, dropping from $162 billion to $155 billion.

Darkfost characterized this development as “a very negative signal,” explaining that investors are completely exiting the crypto market as it continues correcting, while precious metals surge and equity markets maintain strong upward trends.

This migration of liquidity explains the persistent weakness across cryptocurrency markets.

The analyst drew parallels to 2021, noting that similar stablecoin market cap declines confirmed Bitcoin’s entry into bear market territory, though the Terra Luna collapse amplified that downturn.

Darkfost emphasized that current conditions must improve rapidly, or Bitcoin risks confirming a bearish trajectory with a breakdown well below $80,000.

Bitcoin Price Prediction: $80K Support Acts As Make-or-Break Zone

The weekly BTC/USDT chart shows Bitcoin consolidating after a sharp rejection from the $100,000–$103,000 supply zone, which is clearly identified as a bearish invalidation area.

Price currently trades in the mid-to-high $80,000 range, positioned just beneath the 9-week Simple Moving Average, which has transformed into short-term dynamic resistance following the recent breakdown.

Repeated failures to reclaim the $100,000 level confirm that sellers remain aggressive at elevated prices, establishing that zone as a formidable ceiling for any sustained recovery attempts.

The $80,000 level represents critical psychological and structural support. Bitcoin has demonstrated positive reactions near this zone, indicating buyers are defending it vigorously.

As long as Bitcoin maintains weekly closes above $80,000, the broader market structure remains corrective rather than definitively bearish.

Technical momentum indicators suggest caution in the near term.

The Relative Strength Index hovers around the low-40s and has printed multiple bearish divergences during the previous rally, signaling deteriorating momentum and validating the ongoing consolidation phase.

The chart suggests Bitcoin occupies a range-bound corrective phase, with $80,000 serving as the crucial line in the sand.

Holding above this level preserves the possibility of base-building and potential recovery toward $90,000–$95,000 initially.

A decisive weekly close above $100,000 would invalidate the bearish structure and signal trend continuation.

Conversely, losing $80,000 support would likely accelerate downside momentum toward the $70,000 region before establishing a more meaningful bottom.

Bitcoin Hyper Raises $31M As The Leading Crypto Presale

If Bitcoin successfully breaches the $100,000 psychological barrier, established BTC-beta projects like Bitcoin Hyper stand to benefit substantially.

Bitcoin Hyper ($HYPER) is developing the first functional Layer 2 solution for Bitcoin, leveraging Solana-based technology to provide speed and scalability while maintaining Bitcoin’s security framework.

The project has raised over $31million to facilitate Bitcoin-native decentralized applications, offering BTC holders opportunities to deploy assets productively through purpose-built on-chain tools.

Interested investors can participate in the presale by visiting the official Bitcoin Hyper website and connecting their wallet (such as Best Wallet).

The token is currently available for $0.013645 each and could be purchased via USDT or SOL swaps, or directly through a bank card.

The post Bitcoin Price Prediction – $4.5B Realized Loss Is The Biggest Since 2022: Sub-$80K Next? appeared first on Cryptonews.

Crypto traders are abandoning token speculation in favour of prediction markets following a brutal $150 billion altcoin crash, with platforms like Polymarket seeing app installs surge from 30,000 to over 400,000 between January and December 2025, according to Bloomberg.

Weekly trading volume across prediction platforms, including Polymarket and Kalshi, exploded from $500 million in June to nearly $6 billion in January, data from Dune shows, while crypto exchange downloads collapsed by more than half during the same period.

The shift reflects deep fatigue across the token economy after Bitcoin plunged nearly 30% from its October peak and more than 11 million coins effectively died last year, marking the largest extinction event in crypto history, according to CoinGecko.

According to CoinShares, digital asset investment products shed $1.73 billion in the largest weekly outflow since mid-November 2025, driven by fading rate-cut expectations and persistent bearish sentiment.

Last week, Bitcoin spot ETFs also bled $1.62 billion over four consecutive trading days as hedge funds unwound basis trades that now yield below 5%.

Crypto Natives Migrate to Event Betting

Former memecoin traders are leading the exodus toward prediction markets that offer binary odds on real-world events rather than multi-year token roadmaps.

Nikshep Saravanan, who abandoned his digital creator startup to build HumanPlane, a prediction market research platform, said the shift made sense after losing traction without funding.

“Here I can do a lot more with no capital,” the 27-year-old Canadian explained. “There’s so much more interest here.“

Tre Upshaw followed a similar path after losing money on memecoins like SafeMoon, now running Polysights, an analytics dashboard for prediction markets.

“I realized that’s just hyper gambling,” he said. “I got burned so many times on memecoins.”

Yet losses remain widespread across prediction markets too, with 70% of trading addresses showing realized losses, while fewer than 0.04% of Polymarket addresses captured over 70% of total realized profits totalling $3.7 billion.

The infrastructure supporting these markets remains fundamentally crypto-powered despite traders fleeing token speculation.

On Polymarket, every key part of trades except order-matching happens on-chain, revealing blockchain technology’s most durable use case yet as belief-driven speculation cools.

Crypto contracts have become the second-busiest trading category on Polymarket, up from fourth place a year ago, with notional crypto volume increasing nearly tenfold across major platforms, according to Dune data.

Exchanges Rush Into Prediction Markets

Major crypto platforms are aggressively expanding into event contracts as user demand shifts.

Coinbase added prediction markets in December through Kalshi routing, with Clear Street analyst Owen Lau projecting the exchange could generate $700 million in prediction market revenue for 2025, while Robinhood’s annual run rate already approaches $300 million.

Gemini and Crypto.com have also launched their own prediction market efforts, with Crypto.com white-labeling services for Trump Media.

“As we add more instruments, they tend to complement each other,” said Max Branzburg, Coinbase’s head of consumer and business products, noting the firm has “seen tons of excitement” from users wanting a single venue to trade everything.

A Mizuho survey cited by Bloomberg found that Coinbase and Robinhood users were 9 times more likely to use prediction platforms than the general population.

Polymarket returned to the U.S. market following CFTC approval, launching with ultra-low 10 basis point taker fees and zero maker fees, the lowest among major platforms according to Clear Street analyst Owen Lau.

The platform also recently rolled out real estate bets that allow crypto traders to now speculate on housing prices

The company raised $205 million across two funding rounds and secured a $2 billion investment from Intercontinental Exchange at a valuation of nearly $9 billion.

Last month, Kalshi also closed a $1 billion round at an $11 billion valuation and secured CNN as its official prediction markets partner.

Despite near-term outflows, 70% of institutions view Bitcoin as undervalued in a recent Coinbase Institutional and Glassnode survey, and 62% maintain or increase crypto positions since October’s crash.

“Crypto markets are entering 2026 in a healthier state, with excess leverage having been flushed from the system,” said David Duong, Coinbase Global Head of Research.

The post Polymarket Installs Jump 1,200% as Crypto Loses $150B – Are Crypto Traders Done With Tokens? appeared first on Cryptonews.

Ledger is preparing for a potential U.S. initial public offering that could value the crypto wallet maker at more than $4 billion, according to reports.

The Paris-based company has enlisted major Wall Street banks, including Goldman Sachs, Jefferies, and Barclays, to advise on the deal, with a potential listing later this year.

The move comes as Ledger increases its presence in the U.S., where capital markets activity and institutional interest in digital asset firms are especially concentrated in New York.

Wall Street Banks Line Up for Ledger’s IPO Push

Ledger’s IPO ambitions reflect a belief that it has reached sufficient scale to withstand public-market scrutiny from Wall Street.

In an earlier interview, CEO Pascal Gauthier said the company had grown to a point where a listing was realistic, adding that the U.S. stood out as the natural venue.

Roughly 40% of Ledger’s business now comes from North America, a figure that has shaped both its listing strategy and operational expansion in New York.

Gauthier has also said the firm is weighing a U.S. IPO alongside a potential private funding round, keeping multiple capital-raising paths open.

“Money is in New York today for crypto, it’s nowhere else in the world, certainly not in Europe,” Gauthier told the Financial Times.

He reiterated that view in November 2025 when the company first flagged the IPO plans, emphasizing that his increased time in New York was driven by where crypto financing is now concentrated.

From Nano Wallets to Triple-Digit Millions in Revenue

Founded in 2014 by Éric Larchevêque, Joël Pobeda, and Thomas France, Ledger built its reputation on hardware wallets designed to keep private keys offline.

Its early success came from the Ledger Nano series, which gained traction as hacks and exchange failures highlighted the risks of custodial storage.

The company has since broadened its product lineup, launching the Ledger Stax, a touchscreen device aimed at long-term holders and institutional users.

It has also rolled out an iOS app for enterprise clients and recently completed a major rebranding alongside the release of the Ledger Nano Gen5.

Ledger said its revenues reached triple-digit millions in 2025, marking its strongest performance to date, with further growth expected this year.

Over the past decade, the firm estimates it has sold more than seven million devices globally and now safeguards around 20% of global crypto assets, including over $100 billion worth of bitcoin.

The company was last valued at $1.5 billion in 2023 after raising a $108 million extension to its Series C round, bringing total funding in that round close to $500 million.

While Ledger has since said its valuation has increased, it has not disclosed an updated figure ahead of the reported IPO preparations.

Fees, Data Exposure, and the Self-Custody Debate

As Ledger expands beyond pure hardware, it has reframed its devices as “Ledger signers,” positioning them as tools for securing digital assets and online identities in an AI-driven environment.

That shift has not been without controversy, particularly around new monetization features.

Last October, Ledger revealed that its Multisig app would charge a flat $10 fee per transaction, excluding token transfers, which would instead incur a 0.05% variable fee.

The charges are applied on top of standard blockchain gas fees, prompting backlash from users who argue that self-custody should not come with recurring platform costs.

Security concerns have also resurfaced following a recent data exposure incident involving a third-party provider.

On January 5, 2026, blockchain researcher ZachXBT said personal information of Ledger customers was accessed in a hack on Global-e, a payment processor used by the company.

While no funds were compromised, researchers warned that the exposure heightens the risk of phishing and social engineering attacks.

The post Crypto Wallet Maker Ledger Preps $4B US IPO – Can It Win Wall Street? appeared first on Cryptonews.

Most institutional investors remain bullish on Bitcoin despite brutal fourth-quarter volatility that erased nearly a third of the asset’s value from recent peaks.

A new Coinbase Institutional and Glassnode survey found 70% of institutions view BTC as undervalued, even after the token dropped from above $125,000 in early October 2025 to trade around $90,000 by year-end, while 60% of non-institutional investors share that conviction.

The findings come from a quarterly poll of 148 global investors, split between 75 institutions and 73 non-institutions, conducted between December 10, 2025, and January 12, 2026.

Despite the October liquidation event that shook altcoin markets and compressed leverage across derivatives platforms, most respondents held or added to crypto positions rather than retreating.

Around 62% of institutions and 70% of non-institutions either maintained existing allocations or increased net long exposure since October.

Bearish Sentiment Rises, But Doesn’t Dominate Positioning

Perceptions of the market cycle shifted noticeably during the quarter.

Around 26% of institutions and 21% of non-institutions now believe crypto has entered the bear-market markdown phase, up sharply from just 2% and 7%, respectively, in the prior survey.

That shift exposes the weight of October’s deleveraging event, which saw the Altcoin Season Index plummet and mid-cap tokens struggle to recover their third-quarter gains despite the launch of several spot altcoin ETFs in the US.

Still, the uptick in bearish views did not translate into widespread selling. Most investors stuck with their positions, and sentiment toward Bitcoin specifically remained constructive.

“We have a constructive view for 1Q26,” Coinbase Global Head of Research David Duong wrote in the report. “We believe that crypto markets are entering 2026 in a healthier state, with excess leverage having been flushed from the system in Q4.“

Bitcoin dominance held relatively steady through the turbulence, rising only marginally from 58% to 59% over the quarter, a sign that institutional capital continued to favor the largest digital asset even as smaller tokens faced sustained selling pressure.

Open interest in BTC options overtook perpetual futures as market participants sought downside protection, with the 25-day put-call skew staying positive across 30-day, 90-day, and 180-day expiries.

Coinbase Survey Points to Macro Support and Policy Progress

Several factors underpinned the optimistic outlook. Inflation held steady at 2.7% in December’s Consumer Price Index reading, and the Atlanta Fed’s GDPNow model projected robust 5.3% real GDP growth for the fourth quarter as of January 14.

While the future direction of monetary policy remained uncertain, Duong said the firm still expects the Federal Reserve to deliver two rate cuts totaling 50 basis points currently priced into Fed funds futures, “which should provide a tailwind for risk assets broadly and crypto specifically.“

Questions about comprehensive crypto market structure legislation persist, but confidence in eventual regulatory clarity stayed firm.

“We’re confident that we will eventually see a set of rules that allows the industry to reach its full potential,” the report stated, noting that major policy progress in the US, particularly around the proposed CLARITY Act, could boost investor sentiment further.

Beyond the survey, separate data shows institutional engagement deepening across channels.

A recent Bitwise and VettaFi poll found 32% of financial advisors allocated to crypto in client accounts during 2025, up from 22% in 2024, with registered investment advisors leading at 42%.

Similarly, a separate Coinbase survey found that younger US investors now allocate 25% of their portfolios to non-traditional assets, compared with 8% among older cohorts.

Risks Remain, But Long-Term Trajectory Holds

The Coinbase report acknowledged headwinds. While the economy appears solid, the jobs market cooled in 2025, with the US adding just 584,000 positions, down from 2 million in 2024, partly due to increased AI adoption.

Geopolitical tensions have flared in several regions, and any escalation that disrupts energy markets could dampen investor appetite.

“A meaningful uptick in inflation, a spike in energy prices, or a significant flare up of geopolitical tensions could warrant a more cautious approach to risk assets,” the report warned.

Still, onchain metrics improved after October’s shakeout. Bitcoin supply moved within three months, surged 37% in the fourth quarter, while coins unmoved for over a year fell 2%, indicating short-term distribution that likely cleared weaker hands.

Ethereum’s Net Unrealized Profit/Loss ratio swung sharply through 2025, hitting capitulation in the first quarter, then rising to optimism in the third quarter, and settling back into fear territory by year-end.

Despite recent ETF outflows totaling $1.62 billion over four trading days and Bitcoin slipping below $90,000, institutional conviction appears durable. As Duong put it, “crypto markets are entering 2026 in a healthier state.”

The post 70% of Institutions Say Bitcoin is Undervalued Despite 30% Crash – Bitcoin About to Rally? appeared first on Cryptonews.

Changpeng “CZ” Zhao confirmed he has no plans to return to Binance despite receiving a presidential pardon from Donald Trump three months ago.

Speaking at his first World Economic Forum appearance in Davos, the former CEO detailed his prison experience, the pardon process, and his current government advisory work on crypto regulation.

“Much more freedom, much more liberated,” Zhao said about the October 20 pardon’s psychological impact. “I was a free man before but with a felon status. But now I’m a real free man.“

From Prison to Presidential Pardon: CZ’s Journey

Zhao served four months in federal prison after pleading guilty in November 2023 to violating the Bank Secrecy Act.

His first day involved a “pretty brutal” strip search where authorities required him to “strip naked,” “lift your balls,” and “flip over, spread your butt cheeks, cough three times.“

His first cellmate was serving 30 years for double murder. “I’m not usually very emotionally stable,” Zhao said about coping.

“So I just thought, at four months, I just got to get through it, right?” Despite legal advice that no one in U.S. history had been jailed for a single Bank Secrecy Act violation, he received prison time while most bank CEOs get deferred prosecution agreements.

Media speculation in March 2025 prompted Zhao to apply after major publications suggested he should receive one.

“It was actually all the media that says I might be trying to get a pardon,” he explained. “If all the media like you know Wall Street Journal, Bloomberg, New York Times are saying that I should be getting a pardon,” he decided to apply.

He never met Trump directly. “I never got in front of Trump,” Zhao said, noting the process remained “like a black box. I don’t know what the process is.”

He was “about 30, 40 feet away from him” during a Davos session but never shook hands. “I just waited and waited and waited and then suddenly it happened.“

Current Focus: Education, Investment, and Government Advisory

Zhao now focuses on Giggle Academy, a free education platform, while working with YZLabs and mentoring BNB Chain founders.

“I also spent quite a lot of a lot of time talking with about a half about a dozen governments about you know how to regulate crypto, how to do tokenization, how to do stable coins,” he said.

He firmly ruled out returning to Binance. “I haven’t really needed to go back. I didn’t really want to,” he stated.

“I don’t think it’s good for me to go back. I think we should leave room for strong leaders to grow.” His involvement today is minimal, revealing, “When I want to give them advice, I just write it on Twitter.“

When asked about potential refunds of Binance’s $4.3 billion settlement, Zhao said, “If we get any refund, we will be investing that in America, to show our appreciation,” though he clarified he had not requested one.

CZ Predicts 2026 Bitcoin “Super Cycle” Breaking Historical Pattern

Notably, Zhao predicted a “super cycle” in 2026 that could break Bitcoin’s four-year pattern. “I have very strong feelings that you will probably be a super cycle” in 2026, he told CNBC.

“Normally, Bitcoin follows four year cycles historically,” Zhao explained.

“If you look at historic data like every four years you know there’s an all-time high and then there’s a drop. But I think this year given the US being so pro crypto and every other country is kind of following, I do think we will see this we will probably break the four year cycle.“

Zhao doesn’t trade despite his holdings. “I don’t trade at all,” he said. “I just hold Bitcoins. I hold BNB. I don’t do day trading.” On long-term predictions, he stated, “If you look at a 10, five, 10 year horizon, it’s very easy to predict. We’re going to go up.“

Corruption Allegations and Political Backlash

The pardon has drawn fierce opposition from Democratic lawmakers, who question its timing and the circumstances surrounding it.

Senator Elizabeth Warren wrote that “the convergence of Mr. Zhao’s pardon application and Binance’s financial entanglements with the President’s family presents urgent concerns regarding the integrity of our justice system.“

Representative Maxine Waters also called it “an appalling but unsurprising reflection of his presidency.“

Despite these allegations, Trump claimed he doesn’t know who Zhao is, calling the case “a Biden witch hunt.”

White House press secretary Karoline Leavitt also defended the decision, noting the case had “no allegations of fraud or identifiable victims.“

In response to mounting criticism, Zhao’s attorney, Teresa Goody Guillén, dismissed corruption allegations as “false statements” based on “fundamental misunderstandings” of blockchain technology, arguing that Zhao “never should have been prosecuted.“

While CZ confirmed he will not be returning the exchange, reports, however, indicate that Binance is exploring options to re-enter the U.S. market.

The post CZ Declares He Won’t Return to Binance After Trump Pardon – What’s Going On? appeared first on Cryptonews.

A severe Arctic blast sweeping across the United States has forced Bitcoin miners to take more than 110 exahashes per second of computing power offline, temporarily slowing block production to 12 minutes as operators curtail operations to ease strain on regional power grids, according to The Miner Mag.

The widespread shutdowns mark one of the largest coordinated mining curtailments since the 2021 Texas grid crisis, with FoundryUSA’s hashrate dropping nearly 60% since Friday.

Real-time data from Mining Pool Stats shows FoundryUSA’s hashrate fell from approximately 340 EH/s to roughly 242 EH/s over the weekend, while Luxor recorded a similar decline from about 45 EH/s to around 26 EH/s.

Smaller reductions appeared across Antpool and Binance Pool, though these pools serve less U.S.-concentrated operations, suggesting total curtailments may exceed the initial 110 EH/s estimate, The Miner Mag reported.

Grid Operators Report Stability Despite Extreme Cold

The hashrate pullback coincided with a severe Arctic air mass pushing subfreezing temperatures, snow, and ice deep into the central and eastern United States.

Grid operators across multiple states issued conservation alerts as heating demand surged, yet Texas’s grid operator ERCOT reported on Friday that conditions remained stable despite the cold weather.

The stability contrasts sharply with February 2021, when Winter Storm Uri triggered widespread outages and prolonged blackouts across the state.

Since that crisis, Texas has added substantial large-load capacity, much of it tied to Bitcoin mining and data center operations.

Unlike traditional industrial loads, many Bitcoin miners participate in demand response programs, allowing them to rapidly curtail consumption during periods of grid stress.

As noted by The Miner Mag, this flexible-load model represents a dynamic shift from the 2021 scenario, when such infrastructure did not exist to support grid balancing during extreme weather events.

Singapore-based miner Bitdeer, which operates over 293,000 rigs globally, including facilities in Texas, said in a statement that it does not anticipate major disruptions from the storm.

A company spokesperson explained that the Electric Reliability Council of Texas considers Bitcoin miners “large flexible loads,” meaning they can curtail electricity usage on request, unlike other industrial users with firm electrical demands.

“Bitdeer stands ready to fully support the grid should supply constraints occur,” the spokesperson added.

The curtailments come as Bitcoin’s seven-day average network hashrate had already declined to about 992 EH/s, down roughly 13.7% from the all-time high of above 1.15 ZH/s reached in October, according to data reported by The Miner Mag last week.

The moderation follows Bitcoin’s market price falling nearly 30% from its October peak, prolonging pressure on mining economics by keeping competition for block rewards elevated even as revenues per unit of computing power fell.

Storm Threatens 60 Million People Across 1,800 Miles

The massive winter storm extends for 1,800 miles from far west Texas to the mid-Atlantic coast, threatening to affect upwards of 60 million people across more than a dozen states, according to AccuWeather.

AccuWeather Senior Vice President Evan Myers warned that the combination of snow, ice, and bitter cold across such a large area would “stall daily life for days,” with some power outages lasting through extended periods as Arctic air charges in behind the storm.

About 60 million people will experience icing conditions, with potentially 1 million people without power for an extended period, AccuWeather estimated.

AccuWeather Chief Meteorologist Jon Porter noted that many areas hit hard by Hurricane Helene in September 2024 still have temporary power lines that “may come down more easily than permanent lines,” potentially stretching recovery resources and personnel to the limit across North Carolina and other affected states.

The storm’s intensity has already prompted thousands of flight cancellations across the region as airlines deal with displaced aircraft and crews.

AccuWeather Storm Warning Meteorologist William Clark cautioned that “entire supply chains may break down from prolonged days of extensive interstate closures,” warning that critical supplies, including pharmaceuticals and basic necessities, may become scarce in the hardest-hit areas.

The United States controls nearly 38% of the global Bitcoin hashrate according to estimates from Hashrate Index, making American mining operations critical to network security.

The post Massive US Storm Forces Bitcoin Miners Offline – What Does That Mean for Bitcoin Holders? appeared first on Cryptonews.

Tether emerged as the most profitable crypto entity in 2025, generating an estimated $5.2 billion in revenue as stablecoins overtook all other protocol categories in earnings.

According to the latest Coingecko annual crypto industry report, Tether alone accounted for 41.9% of all stablecoin-related revenue in 2025, outpacing competitors such as Circle, Hyperliquid, Pump.fun, Ethena, Axiom, Phantom, and PancakeSwap.

The results show that dollar-backed digital currencies have become the most durable revenue engine in crypto, even as market conditions fluctuated throughout the year.

Tether Leads Stablecoin Issuers To Capture Crypto Revenue Crown

Among more than 168 crypto protocols tracked in 2025, stablecoin issuers collectively generated the highest revenue, with Tether firmly at the center.

Its $5.2 billion haul placed it well ahead of Circle and other major players, reinforcing USDT’s position as the industry’s primary settlement asset.

Within the top ten revenue-generating protocols, just four entities, led by Tether and Circle, produced 65.7% of total earnings, equivalent to roughly $8.3 billion.

The remaining six protocols in the top ten were all trading-focused platforms, highlighting a sharp divide between stable revenue streams and market-dependent income.

That contrast became clear as trading revenues swung widely with investor sentiment during the year.

Phantom, for example, recorded $95.2 million in revenue in January at the height of the Solana meme coin frenzy, only to see earnings fall to $8.6 million by December as speculative activity cooled.

USDT Claims 60% Share Of $311B Stablecoin Market

The broader stablecoin market expanded rapidly, with total market capitalization rising by $6.3 billion in the fourth quarter alone to reach a record $311.0 billion.

That marked a 48.9% year-over-year increase, adding $102.1 billion as adoption accelerated across regions.

Tether maintained clear leadership with 60.1% of the total stablecoin market cap, or about $187.0 billion, followed by Circle’s USDC at 24.2%, equivalent to $72.4 billion.

Tether is now the world’s third-largest digital asset by market value at $186.8 billion, up roughly 50% from a year earlier.

While the top players strengthened their grip, shifts within the top five reflected changing risk appetites.

Ethena’s USDe experienced the sharpest reversal, with its market cap plunging 57.3%, or $6.5 billion, after a mid-October depeg on Binance undermined confidence in high-yield looping strategies.

Other stablecoins posted mixed but notable moves as capital rotated within the sector.

PayPal’s PYUSD surged 48.4%, adding $1.2 billion to reach $3.6 billion and briefly claiming the fifth spot before World Liberty Financial’s USD1 reclaimed it by nearly $1.

Additional high-growth tokens included Ripple’s RLUSD, which expanded 61.8% to add $488.2 million, and USDD, which climbed 76.9% with a $366.8 million increase.

Inside Tether’s $500B Valuation Path and Expanding Investment Empire

Looking ahead, Bitwise CIO Matt Hougan recently suggested that Tether could become the world’s most profitable company if its trajectory continues.

“There’s a chance that many emerging market countries will convert from primarily using their own currencies to using USDT,” Hougan said, pointing to Tether’s near-total dominance outside Western markets.

Based on projected interest income, calculations indicate that custody of $3 trillion in assets could generate annual revenue exceeding the $120 billion earned by Saudi Aramco last year.

Tether CEO Paolo Ardoino previously told Cryptonews he remains confident USDT will retain its lead due to the company’s deep understanding of real-world usage.

Beyond stablecoins, Tether has expanded aggressively into traditional assets and investments.

The company recently became the second-largest shareholder in Italian football club Juventus and has reportedly explored raising $20 billion for a 3% stake, a deal that would imply a valuation near $500 billion and place Tether among the world’s most valuable firms.

The post Tether Posts Largest Crypto Revenue in 2025: $5.2B From Stablecoin Dominance appeared first on Cryptonews.

Scroll co-founder Ye Chen’s X account was hijacked in a sophisticated phishing operation where attackers posed as platform employees to target crypto industry figures.

The compromised account, which commands substantial influence among crypto leaders, began distributing fraudulent messages claiming copyright violations and threatening account restrictions unless users clicked on malicious links within 48 hours.

The hackers transformed Chen’s profile to mimic X’s official branding, updating the bio to reference Twitter and nCino while warning followers about security breaches.

The attackers flooded the feed with reposts from X’s verified accounts to enhance perceived legitimacy, then launched their phishing campaign via direct messages.

Sophisticated Attack Mirrors Growing Pattern

The breach follows established tactics where hackers exploit trusted accounts to distribute malicious links disguised as urgent platform notifications.

Recipients received messages appearing to come from X’s rights management team, complete with fake compliance warnings and time-sensitive appeals processes designed to create panic and bypass security awareness.

Blockchain security researcher Wu Blockchain first identified the compromise and alerted the community to ignore any communications from the account.

The warning emphasized particular concern given Chen’s extensive network of high-profile cryptocurrency executives, developers, and investors who might trust messages from his verified account.

The attack represents the latest escalation in social media compromises targeting crypto industry leaders, in which hackers increasingly leverage delegated account access and expired domain registrations to bypass security measures, including two-factor authentication.

Industry Faces Relentless Social Engineering Wave

BNB Chain’s official account suffered a similar breach in October when hackers posted fake reward programs with phishing links after Binance co-founder CZ warned followers against clicking suspicious content.

The compromised account promoted fraudulent BSC token distributions, promising early payouts to users who voted on reward dates through malicious URLs designed to drain digital wallets.

Binance co-CEO Yi He’s WeChat account was also hijacked in December to promote meme coin schemes, with attackers conducting a coordinated pump-and-dump operation around the token MUBARA.

Two wallets created hours before the breach accumulated 21.16 million tokens before dumping holdings as retail traders flooded in, netting attackers approximately $55,000 while leaving later buyers exposed to price collapse.

Among other notable accounts hacked were ZKsync and Matter Labs, which were compromised in May through what the team described as “delegated accounts” with limited posting privileges.

Hackers published false claims about an SEC investigation alongside fake airdrop promotions, triggering a 5% drop in the ZK token price despite a prior 38.5% weekly rally.

The prominent crypto media company, Watcher.Guru also confirmed its account breach in March after fake Ripple-SWIFT partnership claims spread across connected Telegram, Facebook, and Discord channels through automated content bots.

The team suspects the compromise originated from a suspicious link containing unusual query strings shared in their Telegram group weeks earlier.

Record Theft Year Exposes Escalating Threats

The crypto ecosystem witnessed over $3.4 billion stolen in 2025, according to Chainalysis’s 2026 Crypto Crime Report, with North Korean state-backed hackers accounting for a record $2.02 billion across fewer but increasingly sophisticated attacks.

The Democratic People’s Republic of Korea now represents 76% of all service compromises, bringing cumulative DPRK cryptocurrency theft to $6.75 billion since operations began.

Personal wallet compromises surged to 158,000 incidents affecting at least 80,000 unique victims, triple the 54,000 cases recorded in 2022.

Address poisoning scams drove December’s single-largest loss, when one victim transferred $50 million to a fraudulent wallet mimicking their intended destination, while private key leaks resulted in $27.3 million stolen from multi-signature wallets.

Personal Security Breaches Surge Across Platforms

Most recently, Ubuntu developer Alan Pope warned that attackers are hijacking Snap Store publisher accounts by registering expired domains linked to legitimate developers, then pushing malicious updates to previously trusted packages.

The technique exploits automatic update systems and established trust signals, with at least 2 confirmed cases of wallet-stealing malware distributed through seemingly normal applications.

Given these growing, multifaceted attack vectors, Better Business Bureau officials are warning consumers about phishing campaigns that lock X users out of their accounts and are subsequently used for cryptocurrency promotions.

Kentucky journalist Jennie Rees described receiving direct messages from apparent colleagues requesting contest votes, only to find her account posting fake Audi purchase claims tied to crypto earnings after clicking the malicious link.

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South Korean crypto exchanges recorded a 62% surge in stablecoin trading volumes as the won fell to multi-year lows against the dollar, prompting platforms to intensify marketing campaigns around dollar-pegged tokens.

According to The Korea Times, trading volume in Tether (USDT) across the nation’s five major won-based exchanges climbed to 378.2 billion won ($261 million) when the exchange rate exceeded 1,480 won per dollar last Wednesday, citing CryptoQuant data.

The spike follows mounting currency pressures that pushed the won through nine consecutive days of declines against the dollar, marking its longest losing streak since 2008, Bloomberg reported.

Major exchanges, including Korbit, Coinone, Upbit, and Bithumb, launched aggressive promotional campaigns centered on stablecoins, including USDC and USDe, waiving trading fees and distributing rewards to boost volumes during what industry officials described as a downturn in broader crypto markets.

Banks Slash Dollar Rates as Government Defends Currency

According to The Chosun Daily, South Korea’s major commercial banks slashed dollar deposit interest rates to near zero in response to government pressure to defend the exchange rate.

Shinhan Bank cut its annual rate from 1.5% to 0.1% starting January 30, while Hana Bank reduced rates from 2% to 0.05% for its Travelog Foreign Currency Account.

The coordinated move followed the authorities’ summoning of bank executives and their request that they “refrain from excessive marketing that encourages foreign currency deposits such as dollars.”

Banks responded by introducing incentives for won conversion, with Shinhan offering a 90% preferential rate for customers converting dollar deposits back to won, plus an additional 0.1 percentage point rate boost for those subscribing to won-term deposits afterward.

Dollar deposit balances at the five major banks fell 3.8% from month-end to 63.25 billion dollars as of January 22, marking the first decline after three consecutive months of surges.

Corporate deposits, which account for 80% of all dollar holdings, dropped sharply from 52.42 billion dollars at year-end to 49.83 billion dollars, suggesting that the authorities’ recommendation to sell dollars spot, combined with perceptions that the exchange rate had peaked, was driving the decline.

Individual dollar deposits grew at a significantly slower pace, rising just 109.64 million dollars, compared with the previous month’s 1.09 billion dollar surge.

Presidential Intervention Accelerates Won Stabilization

President Lee Jae-myung delivered a rare verbal intervention on the exchange rate during a January 21 press conference, stating authorities predicted the rate would drop to around 1,400 won within one to two months.

The won-dollar rate immediately fell from 1,481.4 won to 1,467.7 won following his remarks, closing at 1,471.3 won.

Market observers noted the unprecedented nature of a sitting president specifying both an exchange rate target and timeline, with Lee’s statement carrying significantly more weight than U.S. Treasury Secretary Scott Bessent’s earlier comment that the won’s recent decline was “inconsistent with Korea’s strong fundamentals.”

Meanwhile, demand for dollar exchange slowed as average daily won-to-dollar conversions reached 16.54 million dollars from January 1-22, while dollar-to-won conversions surged to 5.2 million dollars daily, significantly exceeding last year’s 3.78 million dollar average and indicating increased profit-taking.

In fact, according to CNBC, South Korea’s fourth-quarter GDP growth slowed to 1.5% year over year, missing economists’ forecasts of 1.9%, as construction investment shrank 3.9% and exports pulled back 2.1% from the previous quarter.

The won has lost nearly 2% against the greenback this year, making it one of Asia’s worst-performing currencies, while South Korean retail investors bought approximately 2.4 billion dollars of U.S. equities on a net basis through mid-January, up roughly 60% from the same period last year.

The broader economic slowdown comes as Seoul advances major crypto policy reforms despite regulatory gridlock over stablecoin governance.

Earlier this month, South Korea ended its nine-year corporate crypto trading ban, permitting listed companies to invest up to 5% of equity capital in top-20 cryptocurrencies, while lawmakers passed amendments to the Capital Markets Act and Electronic Securities Act establishing legal frameworks for tokenized securities trading beginning January 2027.

Korea Exchange Chairman Jeong Eun-bo pledged to launch spot Bitcoin ETFs and extend trading hours to 24/7 as part of efforts to eliminate the “Korea discount,” though comprehensive digital asset legislation remains stalled amid disputes between the Financial Services Commission and the Bank of Korea over stablecoin issuance rules.

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The Ethereum Foundation has officially elevated quantum resistance to a top strategic priority with the formation of a dedicated Post Quantum team backed by $2 million in funding.

The new initiative comes as blockchain networks face mounting pressure to defend against quantum computing threats that industry experts increasingly warn could materialize within years rather than decades.

Ethereum researcher Justin Drake announced the team formation on Friday, revealing that Thomas Coratger will lead the effort alongside Emile, a core contributor to leanVM.

“After years of quiet R&D, EF management has officially declared PQ security a top strategic priority,” Drake said, adding that the foundation has been developing its quantum strategy since a 2019 presentation at StarkWare Sessions.

Foundation Commits Resources Across Multiple Fronts

The Ethereum Foundation is launching comprehensive defensive measures spanning research, development, and infrastructure testing.

Antonio Sanso will kick off bi-weekly All Core Devs Post Quantum breakout calls next month, focusing on user-facing security, including dedicated precompiles, account abstraction, and transaction signature aggregation with leanVM.

The foundation announced two $1 million prize competitions to strengthen cryptographic foundations.

The newly launched Poseidon Prize targets the hardening of the Poseidon hash function, while the existing Proximity Prize continues to drive hash-based cryptography research.

“We are betting big on hash-based cryptography to enjoy the strongest and leanest cryptographic foundations,” Drake stated.

Multi-client post-quantum consensus development networks are already operational, with pioneer teams including Zeam, Ream Labs, PierTwo, Gean client, and Ethlambda working alongside established consensus clients Lighthouse, Grandine, and Prysm.

Weekly post-quantum interop calls, coordinated by Will Corcoran, are managing collaborative technical development across these diverse implementation teams.

The foundation will host a three-day expert workshop in October, bringing together top specialists from around the world, building on last year’s post-quantum workshop in Cambridge.

An additional dedicated post-quantum day is scheduled for March 29 in Cannes, ahead of EthCC, to create multiple forums for advancing research and coordination across the global Ethereum development community.

Industry Voices Split on Timeline Urgency

The quantum threat has divided blockchain leaders on both timeline predictions and strategic priorities.

Independent Ethereum educator sassal.eth called quantum computing “a very real threat for blockchains” that is “coming sooner than most people think,” praising the foundation’s defensive preparations.

Pantera Capital General Partner Franklin Bi predicted that traditional financial institutions will struggle with the transition to post-quantum cryptography.

“People are over-estimating how quickly Wall Street will adapt to post-quantum cryptography,” Bi said, adding that blockchain networks possess unique capabilities for system-wide upgrades at a global scale.

He argued that successful quantum resistance could transform select blockchains into “post-quantum safe havens for data and assets,” particularly as traditional systems face prolonged periods of vulnerability due to single points of failure.

Bitcoin community assessments remain sharply contested. Vitalik Buterin previously shared Metaculus data showing a median 2040 timeline for quantum computers breaking modern cryptography, with roughly a 20% probability before the end of 2030.

Blockstream CEO Adam Back has dismissed near-term concerns, claiming practical threats remain decades away and accusing critics of creating unnecessary market alarm.

Project ZKM contributor Stephen Duan acknowledged transition challenges while calling quantum resistance “inevitable,” noting that his team will soon upgrade multiset hashing to a lattice-based construction.

ZKsync inventor Alex Gluk also said the network’s Airbender prover is already “100% PQ-proof,” highlighting Ethereum’s unmatched ability to adapt to emerging threats while maintaining its position as the global financial settlement layer.

Foundation Plans Comprehensive Roadmap Release

The Ethereum Foundation will publish detailed strategic guidance on pq.ethereum.org covering full transition planning to achieve zero loss of funds and zero downtime over the coming years.

Drake highlighted recent artificial intelligence breakthroughs in formal proof generation, noting that specialized mathematics AI recently completed one of the hardest lemmas in hash-based SNARK foundations in a single eight-hour run costing $200.

The foundation is developing educational materials, including a six-part video series with ZKPodcast and enterprise-focused resources through EF Enterprise Acceleration.

Ethereum now has representation on the post-quantum advisory board, Coinbase announced this week, bringing together leading cryptography researchers to assess long-term blockchain security risks as quantum computing capabilities advance across government and private-sector development programs.

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Las Vegas Valley businesses, from restaurant chains to small juice bars, are embracing Bitcoin payments as mainstream adoption accelerates, with companies avoiding credit card processing fees averaging 2.5% to 3.5% while tapping into a growing customer base actively seeking crypto-friendly merchants.

The shift follows Square’s November 2025 decision to enable roughly 4 million U.S. merchants to accept Bitcoin payments with zero processing fees through 2026.

According to Fox5Vegas, at Cane Juice Bar and Cafe on Rainbow near Windmill, district manager Tyler Peterson serves fresh-pressed sugar cane juice that customers can pay for with cash, card, or Bitcoin after eight months of crypto implementation.

“Bitcoin is getting very popular with mainstream people, not just the people that are actually into things like cryptocurrencies,” Peterson said, noting the payment option helps the business “move forward” while attracting new customers who specifically seek Bitcoin-accepting locations.

Small Business Growth Through Bitcoin Maps

Peterson confirmed customers who normally wouldn’t know about his shop come in specifically to use Bitcoin, with calls and inquiries arriving regularly.

“So actually some customers we have generated off of accepting Bitcoin,” Peterson said. “That Bitcoin map is helping us out a lot.”

Consumers can locate Bitcoin-accepting businesses through dedicated Bitcoin maps or Cash App’s directory feature, creating organic discovery channels for merchants willing to accept crypto payments.

Jeremy Querci, a Bitcoin consultant with Sovreign, explained that businesses accepting Bitcoin now range from medical practices to juice bars to children’s play places, with payment processing requiring just a few taps on a phone.

“At the time of checkout, you say you want to pay in Bitcoin and the business can bring up a QR code that you scan with your phone with any Bitcoin app,” Querci said, while Peterson asserted the technology will become progressively easier as “it’s the future.”

National Chains Lead Corporate Bitcoin Adoption

The momentum extends beyond small businesses into major restaurant chains, with Steak ‘n Shake announcing this week plans to pay all hourly employees at company-operated restaurants a Bitcoin bonus of $0.21 for every hour worked starting March 1, with funds accessible after a two-year vesting period.

CEO Will Reeves positioned the move as part of the 91-year-old burger chain’s transformation into “a real bitcoin company, putting sound money into the hands of working Americans.“

Lightning Network payments enabled across all U.S. Steak ‘n Shake locations in mid-May 2025 brought transaction fee savings of nearly 50% compared with credit cards, alongside roughly 15% increases in same-store sales in the months following launch.

The rollout received public backing from Jack Dorsey, who enthusiastically endorsed the chain’s Bitcoin adoption plans when the company first polled followers about accepting crypto.

Infrastructure Advances Enable Mainstream Payments

Cash App rolled out Bitcoin Lightning payments and stablecoin transfers in November 2025, allowing eligible users to pay over the Lightning Network in seconds with no fee using either BTC or USD balances after scanning a Lightning QR code.

The app introduced Bitcoin Map, an in-app directory that helps customers find nearby Square merchants and other businesses accepting Bitcoin, enabling users to locate stores, get directions, and pay directly over Lightning at checkout.

Just yesterday, crypto payments firm Mercuryo partnered with Visa to enable near-real-time conversion of digital assets into fiat currency, allowing users to send proceeds directly to Visa debit and credit cards via Visa Direct.

“This partnership with Visa will further enhance Mercuryo’s ability to deliver a fast, low-cost user experience,” said Mercuryo co-founder and CEO Petr Kozyakov, noting the integration reduces friction historically associated with moving funds across borders or cashing out digital assets.

The corporate adoption mirrors explosive growth across the broader crypto payments landscape, with crypto card volumes surging from roughly $100 million monthly in early 2023 to over $1.5 billion by late 2025, representing a 106% compound annual growth rate, according to Artemis Analytics.

Annualized volumes now exceed $18 billion, while traditional peer-to-peer stablecoin transfers grew just 5% to $19 billion over the same period.

At the time of publication, Bitcoin is trading around $89,500, down roughly 5% over the previous week, as Bitcoin spot ETFs experienced steep outflows totaling $1.62 billion across four trading days amid compressed yields on basis trades that dropped below 5% from around 17% a year ago.

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Ripple has extended its custody partnership with Garanti BBVA Kripto, reinforcing its commitment to the Turkish cryptocurrency market.

Analyst says this is bullish for the XRP price prediction as technical indicators point to a $2.50 breakout if the $2.00 psychological resistance is overcome in the coming days.

Ripple Wins Turkish Garanti BBVA Partnership

Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, announced the partnership extension on X (formerly Twitter), emphasizing the continuation of their existing relationship.

The collaboration ensures that Garanti BBVA’s retail customers maintain access to secure custody and transfer services for multiple cryptocurrencies, including XRP, Bitcoin, and Ethereum.

Garanti BBVA’s cryptocurrency journey began in late 2024 following a successful pilot program conducted with both Ripple and IBM.

The initial phase attracted approximately 14,000 early adopters.

This partnership was specifically designed to provide the bank with enterprise-grade key management infrastructure, enabling secure deployment and management of digital asset services.

Beyond the Turkish partnership, Ripple has secured another important regulatory milestone.

The company recently obtained a “Green Light Letter” from Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF), representing preliminary approval for an Electronic Money Institution (EMI) license.

While the regulator has completed its legal assessment, final authorization remains pending.

This development adds to Ripple’s extensive regulatory portfolio, which now includes over 75 licenses across global jurisdictions.

XRP Price Prediction: XRP Forms Rare W-Pattern at $1.95 Support

The 4-hour XRP/USDT chart reveals several compelling technical patterns. Price action has been consolidating within a falling wedge formation, a pattern that frequently precedes bullish breakouts rather than continued downtrends.

The narrowing range between lower highs and lower lows suggests diminishing selling pressure as the asset approaches a critical decision point.

A notable W-pattern has formed near the wedge’s lower boundary, with the $1.88–$1.90 zone demonstrating robust support.

This repeated defense of key levels indicates strong buying interest at these prices, establishing a potential launching pad for upward movement.

Currently trading around $1.95, XRP faces immediate resistance in the $1.98–$2.00 zone, which coincides with the wedge’s upper trendline.

A decisive 4-hour close above this critical area would confirm both the falling wedge breakout and the W-pattern reversal signal.

If XRP successfully breaks through the $2.00 psychological barrier, analysts anticipate initial upside targets between $2.10 and $2.20.

Strong momentum could extend the rally toward the $2.35–$2.40 region, with some optimistic projections suggesting movement toward $2.50.

However, traders should remain cautious of potential downside scenarios.

A rejection at the $2.00 resistance level, followed by a breakdown below wedge support, could postpone the bullish thesis.

Such a development might result in renewed consolidation or a retest of the lower $1.80 range.

Beyond XRP: Bitcoin Hyper Raises $30M As First True BTC Layer 2

While XRP attracts attention for its potential breakout, investors are also watching Bitcoin Hyper ($HYPER), a project creating the first authentic Layer 2 solution for Bitcoin using Solana-based technology.

The platform combines speed and scalability while maintaining Bitcoin’s security framework.

The Bitcoin Hyper presale has already raised over $30 million, demonstrating strong market interest.

The project’s Solana-powered Layer 2 infrastructure enables developers to build Bitcoin-native decentralized applications, offering BTC holders new opportunities to utilize their assets through purpose-built on-chain tools.

As major wallets and exchanges prepare to integrate this scaling solution, demand for $HYPER is expected to increase rapidly.

The token is currently available during the presale phase at $0.013625.

Interested investors can visit the official Bitcoin Hyper website and connect their preferred wallet (such as Best Wallet) to swap USDT or SOL for $HYPER, or purchase directly using a bank card before the next price increase.

The post XRP Price Prediction: Ripple’s Turkey Push Fuels $2.50 Target – But $2.00 Must Crack appeared first on Cryptonews.

Binance is exploring plans to bring back stock trading on its platform four years after discontinuing the feature, according to a report from The Information.

The world’s largest crypto exchange removed stock tokens in 2021 amid regulatory scrutiny, but now appears ready to re-enter equity markets as competitors push toward unified investment platforms.

The timing aligns with a broader industry shift toward “everything exchanges” that combine crypto and traditional assets under a single platform.

Coinbase began rolling out stock trading to select users earlier this month while positioning itself against traditional brokerages and rival Robinhood, which has offered blended stock and crypto trading for years.

Exchanges Race to Build Unified Platforms

Binance’s potential return to stock trading comes as multiple crypto platforms accelerate efforts to merge digital assets with conventional financial products.

Coinbase CEO Brian Armstrong defended his company’s push into equities in a recent Fortune interview, arguing the exchange is positioned to lead as financial assets migrate to blockchain infrastructure.

“We have deep crypto expertise. We have the most trusted brand in crypto,” Armstrong said, adding that Coinbase aims to bridge traditional finance and crypto while advancing tokenized equities.

The exchange currently offers stocks through Apex Fintech Solutions with plans to expand access to all customers in the coming weeks, though fully tokenized equities remain years away pending SEC coordination.

Austria’s Bitpanda also announced Wednesday it will launch a unified investing platform on January 29, bringing stocks, ETFs, crypto, and precious metals together under one app.

The expanded platform will offer more than 10,000 stocks and ETFs at a flat €1 trading fee with zero custody fees and no payment for order flow.

Infrastructure Moves Toward On-Chain Markets

Traditional market operators are also simultaneously advancing blockchain-based trading systems.

Earlier this week, the New York Stock Exchange unveiled plans to develop a platform for 24/7 trading and on-chain settlement of tokenized securities, combining its Pillar matching engine with blockchain-based post-trade systems across multiple blockchains.

“For more than two centuries, the NYSE has transformed the way markets operate,” said Lynn Martin, President of NYSE Group.

She said the exchange is now leading the industry toward fully on-chain solutions that combine trust, regulatory rigor, and modern technology.

Yesterday, January 22, Binance founder Changpeng “CZ” Zhao also told a World Economic Forum panel in Davos that he is negotiating with over a dozen governments to tokenize state-owned assets as the next major step in crypto adoption.

Zhao positioned tokenization as the third stage following exchanges and stablecoins, explaining that governments want to directly capture financial upside from their own assets rather than outsourcing value creation to private intermediaries.

Regulatory Clarity Fuels Institutional Momentum

Last month, the Securities and Exchange Commission (SEC) issued a rare no-action letter to the Depository Trust and Clearing Corporation, allowing it to proceed with a controlled tokenization program covering U.S. Treasuries, ETFs, and Russell 1000 equities.

The service is scheduled to launch in late 2026 and will operate on approved blockchains with tokenized assets carrying the same legal rights as traditional securities.

Market data and institutional research suggest this regulatory momentum is already translating into measurable growth.

Earlier this month, venture capital firm Andreessen Horowitz identified stablecoins, real-world asset tokenization, and privacy infrastructure as key forces shaping crypto in 2026.

These assertions come as monthly transfer volumes for tokenized equities are down roughly 17% over 30 days to about $2.05 billion, according to rwa.xyz.

However, the number of Monthly Active Addresses is up nearly 98%, with over 98,167 addresses active in the past month alone.

David Duong, Coinbase’s head of investment research, also recently said regulatory clarity improvements and deepening institutional participation are creating favorable conditions ahead.

“We expect these forces to compound in 2026 as ETF approval timelines compress, stablecoins take a larger role in delivery-vs-payment structures, and tokenized collateral is recognized more broadly,” Duong wrote in a year-end outlook.

Meanwhile, Binance confirmed today that it submitted a Markets in Crypto-Assets license application in Greece as crypto firms across Europe rush to secure regulatory approval before June 2026 transitional deadlines expire.

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A massive generational wealth transfer could reshape crypto markets over the next two decades as younger investors inherit trillions in assets and redirect capital toward digital assets at unprecedented rates.

Nansen founder Alex Svanevik predicts the impending shift will fundamentally alter crypto market dynamics, while recent data shows younger generations already allocating significantly more portfolio exposure to digital assets than their predecessors.

The transfer involves roughly $100 trillion changing hands globally within 20 years, with younger heirs demonstrating markedly different investment preferences than current asset holders.

“It’s like a tidal wave, you know, a tsunami that’s coming,” Svanevik told Magazine, explaining that even modest allocation shifts could double crypto’s current $3.05 trillion market cap. “There are all these kinds of forces that I think just drive crypto upwards.“

Younger Generations Demonstrate Radically Different Asset Preferences

A recent Coinbase research found 45% of younger U.S. investors currently own crypto, compared to just 18% of older generations, with younger cohorts allocating 25% of portfolios to non-traditional assets, triple the 8% allocation among older investors.

Four in five younger adults believe crypto will play a larger role in future financial systems.

The preference gap extends globally. Asia Pacific’s high net worth people now see nearly half allocating over 10% of portfolios to digital assets, with 87% already holding crypto and 60% planning to increase allocations.

In fact, a very recent Bitget Research found 20% of Gen Z and Alpha respondents expressing openness to receiving retirement funds in cryptocurrencies, while 78% showed more confidence in alternative savings methods than traditional pension funds.

Similar to Svanevik, Galaxy Digital’s Zac Prince also emphasized the demographic inevitability earlier this month, noting younger investors prefer “an app first” platform approach over traditional brokerage relationships.

“The older people are going to pass away and pass the money down to younger people,” Prince explained.

He added that younger investors are “much more familiar with platforms like the one that we have at GalaxyOne, where it’s kind of an app first. Multiple kinds of products in one place, really intuitive user interface versus the traditional, you have to pick up a phone and call your broker.“

2025 UBS data reveals $83 trillion will transfer between generations over the next 20-25 years, with $29 trillion in the United States alone.

Prince noted that wealth transfer patterns don’t strictly correlate with population size or GDP, pointing to Italy, which, despite having half Japan’s population and 60% of its GDP, is projected to see higher inter-generational wealth transfers due to higher savings rates and home ownership among elderly citizens.

Infrastructure Maturation Allows Sophisticated Product Development

The crypto industry has reached a level of key infrastructure maturity, allowing institutional-grade products that were previously impossible to build.

“The product we have built could not have been built two or three years ago because the infrastructure wasn’t there,” Svanevik explained, pointing to improved wallet technology and execution capabilities. “The wallet technology wasn’t good enough.“

Institutional adoption has accelerated alongside infrastructure improvements.

Morgan Stanley launched Bitcoin ETFs while traditional financial platforms expanded crypto access, even as retail sentiment remains cautious.

Last month, FINRA Foundation data shows crypto consideration among U.S. investors dropped from 33% to 26% between 2021 and 2024, with 66% viewing digital assets as extremely or very risky, up from 58%.

However, institutional products continue proliferating.

Prince noted distribution channels remain partially closed but expects continued expansion throughout 2025.

“The ETFs just came around last year. Some warehouses and other firms have a one-year lockdown on new ETFs being able to be made available to their clients.“

Gulf-region families show the wealth-transfer pattern already unfolding.

Bahrain’s Kanoo family backed Bitcoin in 2020 despite initial skepticism, later selling at a profit before continuing digital asset investments through hedge fund structures.

Banks, including Citigroup, Barclays, and Deutsche Bank, are scaling Gulf wealth divisions to capture an estimated $1 trillion in regional wealth transfers.

Svanevik believes passage of the CLARITY Act will usher in “a new era for crypto in the US,” with global implications. “The rest of the world is going to follow.“

Bitcoin Struggles Despite Wealth Transfer Optimism

Despite long-term adoption trends, Bitcoin has lost roughly 25,000 millionaire addresses in the year since President Donald Trump returned to the White House, falling from 157,563 addresses at his January 2025 inauguration to 132,383 by Jan. 20, 2026.

The crypto dipped below $90,000 today amid broader market volatility, even as institutional products continue proliferating and younger generations position themselves to inherit trillions in assets over the coming decades.

The post $100 Trillion Inheritance Wave Could Send Crypto Prices Soaring, CEO Says appeared first on Cryptonews.

UBS Group AG, the world’s second-largest wealth manager with over $7 trillion in invested assets, is preparing to offer crypto investments to select wealthy clients, starting with Bitcoin and Ethereum.

According to a January 23 Bloomberg report, UBS is expected to begin offering crypto services in Switzerland, with potential expansion to the Asia-Pacific region and the U.S. The Swiss banking powerhouse is still selecting partners and hasn’t finalized plans.

The initiative reflects growing demand for digital assets among high-net-worth individuals and positions UBS alongside Wall Street competitors who have already entered the crypto wealth management space.

Wall Street’s Crypto Wealth Management Rush

UBS’s planned offering follows a wave of similar initiatives from major banking competitors throughout 2024 and 2025.

Last October, Morgan Stanley opened the door for all its wealth management clients to invest in crypto.

According to CNBC, the bank informed its financial advisers that starting October 15, crypto investments became available to all clients, regardless of risk profile or account type, including retirement accounts.

Previously, access to crypto funds at Morgan Stanley was limited to clients with aggressive risk tolerance and at least $1.5 million in investable assets who wanted exposure through taxable brokerage accounts.

The new policy removes those barriers, allowing any client to add crypto funds to their portfolio under adviser supervision.

Morgan Stanley is also preparing to bring cryptocurrency trading for E-Trade clients in the first half of 2026, a move that could unlock access to as much as $1.3 trillion in trading volume.

According to Bloomberg, the offering will begin with Bitcoin, Ether, and Solana, with plans to expand to broader services.

Morgan Stanley recently took another step into the U.S. crypto market after filing a Form S-1 registration statement with the Securities and Exchange Commission for a Morgan Stanley Ethereum Trust, adding to growing expectations that large Wall Street firms are positioning for broader spot crypto products beyond Bitcoin.

The Morgan Stanley Global Investment Committee (GIC) is now advising clients to allocate a small portfolio portion to cryptocurrency, recommending between 2% and 4% depending on risk appetite.

JPMorgan, BofA, Wells Fargo Join Crypto Push

Similarly, JPMorgan Chase & Co. allows select trading and wealth clients to use cryptocurrency exchange-traded funds (ETFs) as collateral for loans, according to Bloomberg, published on June 4.

The bank began with BlackRock’s iShares Bitcoin Trust (IBIT) and plans to expand access to other funds after rollout.

Traditional banking giants Bank of America and Wells Fargo are also offering eligible wealth management clients access to spot Bitcoin exchange-traded funds (ETFs).

The ETFs have been available to clients for several weeks, a source familiar with Bank of America’s plans told Reuters.

The move follows the Securities and Exchange Commission’s (SEC) approval of these investment vehicles in January 2024, marking a major milestone in cryptocurrency acceptance within traditional financial systems.

UBS already active in Hong Kong and Blockchain Integration

Currently, UBS Group AG and rivals such as HSBC Holdings Plc offer select clients in Hong Kong the ability to trade specific crypto-linked exchange-traded funds (ETFs).

Affluent clients have been granted access to the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs since the initiative went live in 2023.

UBS is also taking a major step in integrating blockchain technology into traditional finance by experimenting with digital gold investments for retail investors.

Last February, UBS completed a proof-of-concept for its fractional gold investment product, UBS Key4 Gold, on the Ethereum layer-2 network ZKsync Validium.

In November 2024, the bank launched UBS Digital Cash, a private blockchain pilot for multi-currency cross-border payments.

UBS Tokenize, another initiative, enables on-chain issuance of tokenized financial products, including the first tokenized money market fund on Ethereum.

The post World’s Second-Largest Wealth Manager UBS to Offer Crypto Investing to Wealth Clients appeared first on Cryptonews.

US prosecutors have formally dropped their case against former OpenSea manager Nathaniel Chastain following an appeals court reversal that dismantled what was once positioned as the first NFT insider trading prosecution in American history.

According to sources, the Justice Department announced Wednesday it would enter a one-month deferred prosecution agreement before dismissing the indictment with prejudice.

The decision closes a chapter that began in June 2022 when Chastain was arrested and charged with wire fraud and money laundering for using confidential information to purchase NFTs before they were featured on OpenSea’s homepage.

The case attracted widespread attention as prosecutors attempted to apply traditional financial crime statutes to emerging digital asset markets.

Appeals Court Ruling Undermines Prosecution’s Foundation

Manhattan US Attorney Jay Clayton, a former SEC chair, told the federal court that prosecutors would not retry the case given Chastain had already served three months in prison and agreed not to contest forfeiture of 15.98 ETH worth $47,330.

“The interest of the United States will be best served by deferring prosecution of this matter and not retrying the case,” Clayton wrote in the court filing.

The collapse stems from a July 2024 appeals court decision that found the trial jury received flawed instructions.

The 2nd US Circuit Court of Appeals ruled 2-1 that jurors were improperly told they could convict Chastain based solely on unethical behavior rather than actual theft of property with commercial value.

Judge Steven Menashi wrote last year August that the lower court erred by allowing conviction even if the information Chastain used lacked tangible value to OpenSea.

The appeals panel sharply criticized jury instructions that permitted conviction based on violations of “broad notions of honesty and fair play,” warning such standards could criminalize nearly any deceptive act.

The court found the featured NFT data was not monetized by OpenSea and was not treated internally as a valuable asset, making it too “ethereal” to qualify as property under federal wire fraud statutes.

Original Conviction Built on Novel Legal Theory

Chastain was convicted in May 2023 after prosecutors accused him of exploiting his role to buy dozens of NFTs shortly before they appeared on OpenSea’s homepage between June and September 2021.

After tokens were featured and prices increased, he sold them at two- to five-times profit using anonymous wallets. The government alleged he made over $57,000 through the scheme.

US Attorney Damian Williams had described the case as a warning to digital asset markets when announcing charges. “NFTs might be new, but this type of criminal scheme is not,” Williams said.

“As alleged, Nathaniel Chastain betrayed OpenSea by using its confidential business information to make money for himself.“

The conviction came after a week-long trial, with prosecutors charging wire fraud rather than securities fraud since NFTs have not been legally classified as securities.

More than 300 defense attorneys had filed letters supporting dismissal, arguing that treating confidential business information as property would “criminalize a broad swath of conduct.“

Broader Regulatory Retreat Under Trump Administration

The dropped prosecution aligns with a broader shift in federal crypto enforcement under the Trump administration.

As reported by Cryptonews earlier today, a Cornerstone Research report found the SEC initiated just 13 crypto-related actions in 2025, down 60% from 33 in 2024 and the lowest level since 2017.

The agency has dismissed multiple high-profile cases including those against Coinbase, Kraken, Consensys, and Cumberland DRW.

The SEC also closed its investigation into OpenSea in February 2025 after issuing a Wells notice in August 2024 that alleged the platform functioned as an unregistered securities marketplace.

At that time, OpenSea founder Devin Finzer called the closure “a win for everyone who is creating and building in our space.“

For now, Chastain will not face supervision by US Pretrial Services and can seek return of the $50,000 fine and special assessment paid following his conviction.

Notably, the global NFT market cap currently stands at $2.56 billion, down 6.72% in the last 24 hours with total sales volume reaching $3.68 million, according to CoinGecko data.

The figure represents an 84.78% decline from the market’s peak of $16.82 billion in April 2022, when digital collectibles were among the hottest assets in crypto and the Chastain case was first unfolding.

The post DOJ Drops OpenSea NFT Fraud Case After Appeals Court Overturns Conviction appeared first on Cryptonews.

SEC Chairman Paul Atkins and CFTC Chairman Michael Selig will hold a joint event on January 27 to discuss regulatory harmonization and efforts to make the United States the global crypto capital.

The two regulators issued a joint statement announcing the event will take place at CFTC headquarters from 10 a.m. to 11 a.m. ET, marking another step in their ongoing coordination efforts.

“For too long, market participants have been forced to navigate regulatory boundaries that are unclear in application and misaligned in design, based solely on legacy jurisdictional silos,” the chairmen said in their statement.

“This event will build on our broader harmonization efforts to ensure that innovation takes root on American soil, under American law, and in service of American investors, consumers, and economic leadership.“

Regulators Build on September’s Historic Turf War Resolution

The upcoming event continues momentum from a September 29 roundtable where both agencies publicly declared an end to their jurisdictional conflicts.

CFTC Commissioner Caroline Pham told attendees at that gathering that “the turf war is over,” while Atkins described it as “a turning point for American financial markets.“

That roundtable brought together executives from major platforms, including Kraken, Polymarket, Kalshi, Nasdaq, CME Group, and Robinhood, to discuss coordinated oversight of digital assets.

Atkins emphasized at the time that “for years, the SEC and CFTC have worked in silos, sometimes at odds,” but that era had ended.

The January 27 event will feature opening remarks from both chairmen, followed by a fireside chat moderated by Eleanor Terrett, co-founder of Crypto in America.

Doors open at 9:30 a.m., and the session will be broadcast live on the SEC’s website.

Agencies Accelerate Crypto Policy After Leadership Changes

Both regulators have moved aggressively on digital asset policy since new leadership took over in 2025.

Atkins assumed the SEC chairmanship in April after Gary Gensler’s departure, immediately shifting away from enforcement-based regulation toward clearer frameworks and guidance.

As reported by Cryptonews today, under Atkins, the SEC opened just 13 crypto-related enforcement actions in 2025 compared to 33 in 2024, a 60% decline and the lowest level since 2017, according to Cornerstone Research.

Eight of those cases involved fraud allegations, indicating a narrower focus on investor harm rather than broad registration theories.

The agency also dismissed seven ongoing actions and reduced total monetary penalties to $142 million, less than 3% of 2024 levels.

Selig took the CFTC helm on December 22 after Senate confirmation, replacing acting chair Caroline Pham.

He immediately launched the Future-Proof initiative, a comprehensive review aimed at updating decades-old regulations for blockchain, AI-driven trading, and prediction markets.

“We are at a unique moment as a wide range of novel technologies, products, and platforms are emerging,” Selig said after his swearing-in.

“Under my leadership, the CFTC will conquer these great frontiers and ensure that the innovations of tomorrow are Made in America.“

Joint Efforts Face Congressional Pressure on Market Structure Bills

The harmonization push comes as Congress advances competing digital asset legislation.

The Senate Agriculture Committee released updated text for its Digital Commodity Intermediaries Act and scheduled a January 27 markup at 3 p.m., just hours after the Atkins-Selig event concludes.

Chairman John Boozman acknowledged that “differences remain on fundamental policy issues” with Democrats, who failed to support the bill despite extended negotiations.

The markup could proceed on party lines, unlike the House Agriculture Committee’s bipartisan 47-6 vote on similar legislation.

According to Eleanor Terrett, Senator Cory Booker’s team told Politico that he will continue working with Boozman to pass and sign the legislation, though no Democrats have publicly supported the text.

Meanwhile, the Senate Banking Committee delayed its markup of the CLARITY Act until late February or March to focus on housing legislation.

Industry divisions over stablecoin yield provisions have complicated negotiations, with Coinbase CEO Brian Armstrong calling certain restrictions “catastrophic” before withdrawing support.

However, President Trump confirmed at Davos 2026 that he expects to sign crypto market structure legislation “very soon,” stating his administration is working to ensure “America remains the crypto capital of the world.”

For now, the joint regulatory event indicates that both agencies are preparing to implement whatever framework Congress ultimately delivers.

The post SEC’s Atkins and CFTC’s Selig Unite to End Crypto Regulatory Chaos appeared first on Cryptonews.

The American Bankers Association placed stablecoin rewards at the forefront of its 2026 policy agenda, escalating an industry-wide campaign against digital-dollar incentive programs that banks claim threaten deposit bases and community lending capacity.

The trade group’s newly released Blueprint for Growth explicitly calls on Congress to “stop payment stablecoins from becoming deposit substitutes that slash community bank lending by prohibiting paying interest, yield or rewards regardless of the platform.“

ABA President and CEO Rob Nichols said the priorities were developed through collaboration with all 52 state bankers’ associations to advance policies that “bolster the economy, expand access to credit and enhance competition in the financial services marketplace.“

The document positions stablecoin yield restrictions as the association’s leading economic priority ahead of fraud prevention, regulatory threshold indexing, and support for minority-serving financial institutions.

Banking Industry Intensifies Pressure on Lawmakers

The coordinated push comes as Senate Banking Committee negotiations over digital asset market structure legislation remain deadlocked over stablecoin reward provisions.

Banking executives have spent months warning that yield-bearing tokens could trigger massive deposit outflows, with Bank of America CEO Brian Moynihan estimating that $6 trillion in deposits could migrate into stablecoins under permissive regulatory frameworks.

JPMorgan CFO Jeremy Barnum also warned during the bank’s fourth-quarter earnings call that interest-bearing stablecoins risk creating “a parallel banking system that sort of has all the features of banking, including something that looks a lot like a deposit that pays interest, without the associated prudential safeguards.“

Community bankers have been particularly vocal, with the Community Bankers Council urging Congress in early January to close what it called a “loophole” allowing stablecoin issuers to indirectly fund yield through exchange partners.

The group warned that large-scale deposit outflows could reduce credit availability for small businesses, farmers, students, and homebuyers in local communities.

Senator Tim Scott’s draft crypto market structure bill released January 9 includes language prohibiting digital asset service providers from paying interest or yield solely for holding stablecoins, though the provision allows activity-based rewards tied to functions like staking and liquidity provision.

Crypto Coalition Mobilizes Against Expanded Restrictions

A coalition of 125 crypto and fintech organizations, including Coinbase, PayPal, Stripe, Ripple, and Kraken, delivered a forceful rejection of expanded yield restrictions in December.

The Blockchain Association-led group argued that banking industry efforts represent “overtly protectionist” measures rather than consumer protection, noting that banks face no similar restrictions on credit card rewards despite engaging in riskier balance-sheet activities.

“The push to restrict stablecoin rewards beyond that agreed to in GENIUS is not a technical refinement or a consumer protection fix,” the coalition stated.

“It would prohibit the same types of incentive programs for stablecoin payments that banks have long offered on credit cards and other types of payment services.“

Just yesterday, Circle CEO Jeremy Allaire called banking concerns “totally absurd” during a World Economic Forum panel, drawing parallels to historical opposition to money market funds.

“The exact same arguments were made,” Allaire stated, noting that roughly $11 trillion in money market funds has grown without preventing lending activity.

He emphasized that all major stablecoin regulations prohibit issuers from paying interest directly, while partner platforms may offer rewards based on commercial arrangements.

“Rewards around financial products exist in every balance that you have with a credit card that you use,” Allaire said.

The crypto coalition disputed Treasury projections suggesting yield-bearing stablecoins could result in up to $6.6 trillion in deposit flight, citing analysis that found no evidence of disproportionate deposit outflows from community banks.

The groups questioned how banks can claim deposit constraints while holding $2.9 trillion in reserve balances at the Federal Reserve.

Coinbase CEO Brian Armstrong said the exchange could not back Scott’s draft bill, citing provisions that would eliminate stablecoin rewards.

These divisions come as global stablecoin transaction volumes reached $33 trillion in 2025, up 72% from the previous year, with USDC processing $18.3 trillion.

Bloomberg Intelligence predicted that flows could reach $56 trillion by 2030 as institutional payment infrastructure adoption accelerates.

For now, the Banking Committee may postpone further work until late February or March, following Coinbase’s withdrawal of support and divided attention to the new housing policy agenda demanded by Trump.

However, the Senate Agriculture Committee has scheduled a markup of competing legislation for January 27 that takes a fundamentally different approach by excluding payment stablecoins from CFTC authority entirely and deferring regulation to frameworks like the GENIUS Act rather than setting specific yield rules.

The post Banks Make Killing Stablecoin Yields Their Top 2026 Priority appeared first on Cryptonews.

The Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) indicator reveals XRP has reset to levels historically associated with accumulation phases after defending a local price floor near $1.85.

Today’s XRP price prediction shows that if the $2.00 psychological level is reclaimed, a price discovery breakout toward the $4.00 high is next.

Ripple’s President Says 2026 Set to Be XRP’s Breakthrough Year

Ripple President Monica Long recently predicted 2026 is set to be XRP’s big year as real utility sees banks, corporates, and providers pilot stablecoins like RLUSD, on-chain assets, crypto custody, and broader institutional investment.

“Crypto is no longer speculative—it’s becoming the operating layer of modern finance,” Long stated.

She projected that this year, approximately 50% of Fortune 500 companies will have crypto exposure or formalized Digital Asset Treasury (DAT) strategies, actively holding tokenized assets, on-chain T-bills, stablecoins, and programmable financial instruments.

Research shows that last year, B2B payments became the largest real-world use case for stablecoins, reaching an annualized run-rate of $76 billion. That’s a dramatic jump from early 2023, when monthly B2B stablecoin transfers sat below $100 million.

According to Long, the opportunity with XRP and crypto generally goes far beyond faster settlement. Companies are sitting on unprecedented amounts of trapped working capital, over $700 billion sitting idle on S&P 1500 balance sheets alone, and more than €1.3 trillion across Europe.

“By the end of 2026, balance sheets will hold over $1 trillion in digital assets, and roughly half of Fortune 500 companies will have formalized digital asset strategies,” Long concluded.

Similarly, according to observations shared by crypto analyst Paul Bennett, while “weak hands” are panic-selling, the XRP Ledger (XRPL) is signaling “bull market.”

Activity on the XRP blockchain just hit a massive 24-hour peak of 1.59 million transactions.

Although XRP’s price recently dipped 13% following geopolitical tensions that sent retail into “extreme fear,” historically, when activity stays high while price drops, it’s a coiled spring ready for an impulsive reversal.

XRP Price Prediction: Daily Chart Shows Constructive Retest

The daily XRP/USD chart shows price previously respected a well-defined descending trendline, then broke above it with a strong impulsive move, signaling a momentum shift.

The subsequent pullback has behaved constructively thus far, with XRP retesting the former breakout zone near the $1.90-$2.00 area and holding above it, suggesting buyers are still defending this level rather than capitulating.

However, the chart also makes clear upside is not yet free. Multiple supply zones are stacked above price, particularly between roughly $2.30 and $2.70, where prior breakdowns and aggressive selling occurred.

These zones represent areas where rallies are likely to face selling pressure and potential rejection.

From here, provided XRP continues holding above the retest area near $1.90-$2.00, the structure favors a gradual push higher, with a likely attempt to revisit the $2.30-$2.40 resistance first.

A clean daily close above that zone would strengthen the bullish case and open the door to higher resistance near the mid-$2.60s.

Maxi Doge Presale Offers Investors 70% APY Ahead of XRP Rally

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Maxi Doge is an early-stage memecoin following the Dogecoin playbook, which helped it surge over 10x during the 2023-2024 breakout.

MAXI presale has raised over $4.5million and offers 70% annual staking rewards for early participants at the current $0.000278 price.

The presale has established an alpha channel to help traders share trade ideas, mirroring early Dogecoin days.

To buy early, visit the official Maxi Doge website and connect a crypto wallet like Best Wallet.

You can pay with USDT, ETH, or use a bank card immediately.

The post XRP Price Prediction: XRP Nears Accumulation Breakout as $1.85 Holds – Bulls Target $4 appeared first on Cryptonews.

Circle CEO Jeremy Allaire dismissed banking industry warnings that stablecoin rewards could destabilize traditional finance, calling such concerns “totally absurd” during a World Economic Forum panel discussion on Thursday.

His remarks came amid escalating tensions between crypto platforms and banks over provisions in pending U.S. market structure legislation.

Speaking at the Davos summit, Allaire defended the stablecoin industry’s growth trajectory while addressing claims from Bank of America CEO Brian Moynihan that yield-bearing digital dollars could trigger massive deposit flight from commercial banks.

The panel, which included International Monetary Fund First Deputy Managing Director Dan Katz and development finance expert Vera Songwe, examined stablecoins’ expanding role in global payments following last year’s passage of the GENIUS Act.

Banks Warn of “Parallel Banking System”

Banking executives have intensified lobbying against stablecoin rewards programs, with JPMorgan CFO Jeremy Barnum recently warning that interest-paying tokens create “a parallel banking system that sort of has all the features of banking, including something that looks a lot like a deposit that pays interest, without the associated prudential safeguards.“

The Community Bankers Council of the American Bankers Association also urged Congress earlier this month to close what it called a “loophole” allowing stablecoin issuers to indirectly fund yield through exchange partners.

Community bankers warned that large-scale deposit outflows could reduce credit availability for small businesses and homebuyers.

Allaire countered that such arguments ignore financial market history and mischaracterize how stablecoins function within regulatory frameworks.

“Rewards around financial products exist in every balance that you have with a credit card that you use,” he said, noting these incentives help with customer retention without functioning as monetary policy dampeners.

Money Market Funds Precedent Cited

The Circle chief executive drew parallels to government money market funds, which banking groups once claimed would devastate deposit bases.

“The exact same arguments were made,” Allaire stated, pointing out that roughly $11 trillion in money market funds has grown without preventing lending activity.

He argued that lending itself has shifted toward private credit markets, with “the vast vast majority of GDP growth in the United States” historically funded through capital market formation around junk bonds rather than bank credit.

Allaire emphasized that all major stablecoin regulations (including the GENIUS Act, Europe’s MiCA framework, and laws in Japan, UAE, Hong Kong, and Singapore) explicitly prohibit stablecoin issuers from paying interest.

“Payment stablecoins” are legally defined as cash instruments used for settlement and require cash-level safeguards under supervision by central bankers and global standard-setters.

While Circle generates income from reserves and revenue-sharing partnerships with platforms like Coinbase, Binance, and Visa, the company itself cannot pay interest directly to tokenholders.

Partner platforms may offer rewards based on their own commercial arrangements, but Allaire argued that this mirrors loyalty programs across traditional financial products.

IMF Acknowledges Benefits Amid Risks

The IMF’s Katz acknowledged stablecoins present “very significant potential benefits” for cross-border payments and financial inclusion while noting risks including banking disintermediation and currency substitution in emerging markets.

Transaction volumes reached $33 trillion in 2025, up 72% from the previous year, with USDC processing $18.3 trillion to lead all stablecoins by payment flow.

Katz emphasized the importance of international regulatory interoperability, stating that realizing stablecoins’ full benefits requires scale and effective cross-border frameworks.

He pointed out the competitive pressures stablecoins create for traditional finance and weak fiscal regimes alike.

Songwe detailed stablecoins’ transformative impact across Africa, where remittance costs averaging 6% can drop to under $1 with digital dollar transfers that complete in minutes, versus five-day settlement delays.

With 650 million Africans lacking bank accounts and 12-15 countries experiencing inflation above 20%, stablecoins provide dollar-denominated savings accessible via smartphones.

Egypt, Nigeria, and Ethiopia lead African adoption, with most transactions below $1 million, indicating heavy small-business use.

In fact, according to Chainalysis, Sub-Saharan Africa received over $205 billion in on-chain value, up roughly 52% from the previous year between July 2024 and June 2025.

However, Songwe noted that 75% of stablecoin reserves remain dollar-denominated, prompting the development of SDR-backed alternatives to reduce dollar dependency and improve transparency around illicit financial flows.

Allaire concluded that stablecoins should remain “cash instrument money, credentially supervised, very very safe money,” with efficient credit delivery systems built atop them through decentralized finance protocols that can be “safer, more transparent, more efficient, more inclusive, and more globally available than what we have with bank credit today.“

The post Circle CEO Rejects Claims Stablecoin Yields Threaten Banks appeared first on Cryptonews.