Crypto prices may be approaching a turning point after months of losses as several recent developments could mark the start of a new bull phase.

In a note on Wednesday, Clear Street analyst Owen Lau, said the roughly 44% drawdown in crypto markets between Oct. 10 and Feb. 28 may now represent the end of the latest downturn.

Lau’s comments came as bitcoin BTC$73,405.75 rose 8% over the past 24 hours, moving to just above $73,000.

He took note of U.S. President Donald Trump’s Tuesday intervention over the hard-fought, but currently stalled, CLARITY Act as raising the odds that the law wins Congressional passage by the end of the summer.

Infrastructure integration is also advancing after Kraken’s banking subsidiary received a Federal Reserve master account, allowing it direct access to the central bank’s payment system. Lau said the move represents a structural step toward integrating crypto-native institutions into the U.S. financial system.

Institutional participation is also expanding. Morgan Stanley recently amended a filing for a proposed spot bitcoin ETF to name Coinbase Custody as a co-custodian alongside Bank of New York Mellon, reinforcing Coinbase’s (COIN) role in the institutional crypto ecosystem.

At the same time, geopolitical tensions in the Middle East have highlighted the utility of blockchain networks as alternative payment rails during periods of financial disruption.

Taken together, Lau said the developments could signal a broader shift for the industry.

“The industry may just hit an inflection point, and we believe this run has legs,” he wrote.

Ripple has advanced its institutional strategy after Ripple Prime went live on the National Securities Clearing Corporation clearing directory. The development embeds its nonbank prime brokerage within core U.S. post-trade infrastructure. Executives describe the listing as a structural step that strengthens its bridge between digital assets and traditional markets.

Ripple Prime Secures NSCC Directory Integration

Ripple Prime, formerly Hidden Road, now appears on the NSCC clearing directory. The update confirms its operational status within the clearing framework operated by the NSCC. Consequently, Ripple expands its footprint inside established capital market systems.

Important milestone for Ripple Prime. NSCC directory listing places us inside core clearing infrastructure to support more efficient, reliable capital markets at scale. Today, Ripple Prime is the largest global non-bank prime broker, integrated directly into digital asset and…

— Mike Higgins (@mikehiggins) March 4, 2026

Mike Higgins, chief executive of Ripple Prime, characterized the milestone as significant for the firm’s growth. He stated that the listing positions Ripple Prime inside essential clearing rails. He added that the move supports more efficient and reliable capital markets at scale.

The integration follows Ripple’s completed acquisition of Hidden Road in 2025. Through the deal, Ripple became the first crypto-native firm to own a global multi-asset prime broker. As a result, Ripple Prime now operates across digital and traditional trading venues worldwide.

XRP Ledger Positioned for Post-Trade Expansion

Ripple Prime supports digital assets, foreign exchange, fixed income, and derivatives under one brokerage structure. Therefore, clients can manage exposures across centralized and decentralized markets within a unified framework. The firm integrates directly with digital asset platforms and established financial venues.

Market participants expect the structure to drive additional post-trade activity onto the XRP Ledger. The brokerage model aligns clearing, collateral, and settlement functions with blockchain infrastructure. This approach links traditional workflows with distributed ledger systems.

Ripple has also integrated support for Hyperliquid to expand institutional access to on-chain liquidity. The integration enables clients to access decentralized derivatives while cross-margining exposures across other asset classes. Accordingly, Ripple Prime extends its reach into decentralized finance without separating risk pools.

Wrapped XRP Gains Institutional Backing

The stablecoin RLUSD now serves as collateral across selected prime brokerage products. This usage expands RLUSD’s role inside institutional trading environments. At the same time, the structure increases transactional utility across Ripple’s ecosystem.

In parallel, Doppler Finance has partnered with Hex Trust to advance institutional use of Wrapped XRP. The collaboration aims to enhance custody standards and operational resilience for tokenized XRP products. Hex Trust will provide regulated custody infrastructure to support compliant product development.

Wrapped XRP, or wXRP, extends XRP’s presence across multiple blockchains. Therefore, institutions can access XRP-based liquidity within broader decentralized ecosystems. The partnership strengthens the infrastructure needed for regulated participation in tokenized asset markets.

Ripple Prime’s NSCC directory listing reflects a broader push into regulated financial channels. The clearing integration supports standardized settlement processes while maintaining digital asset connectivity. This alignment signals Ripple’s intention to operate inside established market frameworks.

The acquisition of Hidden Road marked a turning point in Ripple’s institutional strategy. By securing a multi-asset prime broker, Ripple positioned itself within traditional trading flows. Consequently, the company now combines brokerage services with blockchain settlement capabilities.

Welcome to our institutional newsletter, Crypto Long & Short. This week:

• Martin Gaspar on how bitcoin looks to overcome quantum fears, echoing past climate backlash
• Top headlines institutions should pay attention to by Francisco Rodrigues
• Aave’s revenue multiples hit 2024 lows despite higher prices in Chart of the Week

Thanks for joining us!

-Alexandra Levis

Expert Insights

Why bitcoin’s quantum fears will pass just like the climate panic

By Martin Gaspar, senior crypto market strategist, FalconX

Quantum has become a major theme for crypto the past few months, in part because of technological developments in that space, but also as investors look for potential culprits of the stagnation in crypto prices post October. Quantum risk may come across as an existential threat to bitcoin BTC$73,651.45 given the potential for bad actors to crack legacy accounts such as Satoshi’s. However, a clearer understanding of the threat and increasing industry focus on solutions are driving toward a positive resolution.

There are striking parallels to the concerns over the energy use and climate impact of Bitcoin’s Proof of Work (PoW) mining that dominated headlines in 2021. Those felt existential too, as the headline risk made BTC socially unacceptable. Although industry insiders knew climate concerns were misguided (compared to other industries, such as tech’s data centers, BTC’s energy footprint is low), fears perpetuated, culminating with Tesla dropping BTC as a payment option because of climate risk. At the time, Elon Musk’s support for BTC was a large driver of sentiment, so this action startled the market. If forward-thinking Elon thought the issue was meaningful enough to pull his support of BTC, more conservative groups could seek to ban it or otherwise stifle BTC adoption. From an investor standpoint, why would you buy into an asset with such risk? This question resonates today and is especially pertinent as lower crypto prices weigh on sentiment.

The good news is that the industry can overcome this. In 2021, it took industry leader Strategy taking initiative to work with BTC miners to publish stats on the renewable mix of their energy consumption. While it was no secret to the crypto community that BTC miners naturally seek the lowest cost of energy, which is often renewables, compiling hard data helped convince naysayers. The industry was able to regain credibility to help dispel concerns.

We are seeing the same play out as industry stalwarts come together to publish facts around quantum risk. Coinbase recently established a quantum computing and blockchain working group, which will help issue recommendations for industry participants to protect against quantum risks and provide analysis on quantum breakthroughs. Furthermore, on February 5, as BTC was sharply selling off towards $60,000, Strategy announced a quantum security program during its earnings call, which may have helped stem further selling. It aims to coordinate with the “global cyber, crypto, and bitcoin security community” to help with Bitcoin’s quantum transition.

Concurrently, several startups are working on developing post-quantum technology for blockchains, such as Project Eleven and BTQ Technologies. These developments indicate that the crypto community is rapidly working towards solutions and should help alleviate near-term concerns.

BTC stands to turn the page through its proactive efforts to dispel quantum hysteria. Once the industry issues clear facts and a plausible plan, this issue will come to pass, just like the PoW climate overhang from years past.

Headlines of the Week

Francisco Rodrigues

Geopolitical risks have shown again this week that liquidity in the cryptocurrency space means investors head for the exits as soon as they’re able to. The renewed Middle East conflict has led to major outflows from Iran, while in the U.S. investors have also been backing down. Still, builders appear to be unphased.

Chart of the Week

Aave’s revenue multiples hit 2024 lows despite higher prices

Aave is currently experiencing a fundamental valuation reset: while the token price remains higher than its 2024 lows, the FDV/annual revenue ratio has collapsed back to those levels (<20x), indicating the protocol is generating significantly more revenue relative to its market cap than it did during the speculative peaks of 2025. This decoupling suggests the market is heavily discounting Aave’s current earnings power, likely pricing in the execution risk following the narrow March 1 passage of the “Aave Will Win” proposal and the high-profile exit of core developer BGD Labs.

Listen. Read. Watch. Engage.

Looking for more? Receive the latest crypto news from coindesk.com and explore our robust Data & Indices offerings by visiting coindesk.com/institutions.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc., CoinDesk Indices or its owners and affiliates.

The approval of Kraken’s access to the Federal Reserve’s core payments infrastructure has ignited a fierce response from the banking sector.

In a statement on Wednesday, the Independent Community Bankers of America (ICBA) and the Bank Policy Institute (BPI) strongly opposed the Fed’s decision, arguing it posed a risk to the financial system’s stability.

Banks Challenge Kraken’s Federal Approval

Hours after news surfaced that Kraken had become the first crypto company to secure a master account from the Federal Reserve, the ICBA issued a scathing statement in response.

“Granting nonbank entities and crypto institutions access to the master accounts traditionally limited to highly regulated insured depository institutions poses risks to the banking system,” said ICBA CEO Rebeca Romero, adding, “The Fed should continue limiting master account access to institutions that meet the financial services sector’s highest standards.”

On its part, the BPI expressed concern over the decision-making process. 

“This action ignores public comment that the Federal Reserve sought on this framework, and it was issued with no transparency into the process for approval or the risk mitigants that have been imposed to address the very significant risks it raises.”

The statements subtly highlighted that Kraken now has direct access to the same payment rails used by thousands of US banks and credit unions. This access allows it to settle US dollar transactions directly through the Fed, effectively bypassing intermediary banks. 

On-chain data reveals strong buying interest from whales just a day after the Chinese holidays ended.

Bitcoin’s price has finally shown strong signs of a solid breakout, skyrocketing to a new monthly peak of over $73,000 earlier today.

This is rather unexpected given the massive geopolitical tension, even referred to as war by some analysts, that broke out in the Middle East on Saturday.

At the time, BTC dumped to $63,000 after the US and Israel launched a military operation against Iran, which retaliated immediately against several nations in the region. Although Iran’s Supreme Leader was killed during the attacks, the country has doubled down on its strikes, while the US President indicated that the war could last up to four weeks.

Instead of charting new and painful losses, bitcoin reversed its trajectory by the end of Saturday and rocketed to $68,000. It was rejected and driven south to $66,000 in the following few days, but went hard on the offensive in the past 12 hours or so.

The cryptocurrency gained more than $5,000 within this timeframe, surging to its highest level in a month at over $73,000. This means that it’s up by more than $10,000 since its Saturday low when the attacks began.

Popular analyst CW suggested that the BTC CVD indicator “shows strong buying,” mostly from whales rather than retail.

The $BTC CVD indicator shows strong buying.

In addition, the buying is lager from whales than retail investors.

The current uptrend is being driven by whales. pic.twitter.com/HyAnB6XzOB

— CW (@CW8900) March 4, 2026

You may also like:

In another post, the analyst noted that today is the first day after the Chinese holidays, which lasted for over a week this time, and some of the most utilized exchanges on local soil – Binance and OKX, “are showing massive net buying of BTC.”

Fellow market commentator Daan Crypto Trades acknowledged bitcoin’s surge to a month peak, indicating that the current rally has been a “solid breakout so far.” He believes the bulls should not allow BTC to dip below $71,500 again; otherwise, it would be regarded as a clear sign of weakness.

$BTC Highest level since early February again.

Solid break out so far. From here on out it’s pretty straight forward. Bulls should not let this fall below that $71.5K-$72K area again. If it does, and price accepts back into the range, then this was just a big deviation & stop… https://t.co/SdjrYF1lmw pic.twitter.com/8ODkoKhtVa

— Daan Crypto Trades (@DaanCrypto) March 4, 2026

After weeks of steady withdrawals, investors are beginning to allocate fresh capital to U.S. spot bitcoin exchange-traded funds (ETFs).

The shift follows a difficult start to the year for the products. From mid-October, when bitcoin’s price began its downfall, through late February, spot bitcoin ETFs recorded cumulative outflows of about $9 billion, according to data from Bloomberg Intelligence ETF analyst James Seyffart. The category still shows $1.1 billion in net outflows for 2026, but flows have shifted in recent days. Since Feb. 24, investors have added roughly $1.7 billion.

The rebound suggests some investors believe bitcoin may have found at least a short-term floor.

“It was surprising to me that there was basically no dip buying when bitcoin was a falling knife to start the year,” Seyffart said. At the time, software stocks and crypto assets were both sliding, yet investor behavior split. Software ETFs pulled in record inflows as traders tried to time a bottom while bitcoin ETFs continued to see steady withdrawals.

Those withdrawals were not dramatic, but they persisted.

Now the pattern appears to be reversing. Seyffart said recent price action may have helped restore confidence. Over the weekend, bitcoin held above its recent lows despite geopolitical tensions tied to Iran.

“I think investors are likely feeling a bit more comfortable that we have hit at least a near-term bottom,” Seyffart said. “That higher low this weekend on such massive news had to be a comfort to some.”

The inflows also appear to reflect outright bullish positioning rather than market-neutral trading strategies. Some institutional investors use ETFs and futures together in what is known as a basis trade, where they capture yield from price differences between spot and futures markets.

But that setup does not appear attractive right now.

Yields tied to those trades remain relatively low, while open interest across CME’s crypto futures and options markets has declined. That drop suggests fewer traders are putting on large derivatives positions that typically accompany arbitrage strategies.

Instead, the ETF inflows look more like straightforward bets on bitcoin’s price direction.

Despite bitcoin falling about 16% this year, nearly all spot bitcoin ETFs still show net positive flows for 2026, with BlackRock’s iShares Bitcoin Trust (IBIT) adding roughly $300 million in capital year-to-date. That dynamic highlights how investors continue to allocate through regulated fund structures even during downturns.

Nate Geraci, president of the ETF Store, said the flows also reflect growing conviction among large asset managers promoting the funds.

“It’s easy to frame this as BlackRock simply promoting its highest-revenue product,” Geraci said. “But I see it more as the firm doubling down on its conviction that bitcoin belongs in diversified portfolios.”

Geraci noted that BlackRock has many higher-fee ETFs it could spotlight instead. Meanwhile its spot bitcoin ETF, IBIT, is down about 4% this year. Asset managers rarely highlight lagging funds unless they believe strongly in the long-term case, he said.

PI’s price has rocketed to its highest levels in about two weeks.

Although the entire cryptocurrency market has been charting gains in the past 12 hours or so, some assets have performed better than others. Pi Network’s native token is among those, as the popular alt has taken advantage of the market-wide rally and now trades at a multi-week peak of almost $0.185.

Despite the upcoming massive token unlocks scheduled for the next week or so, PI’s gains today put it among the top-performing alts. Naturally, this surge could be driven by other factors, such as the most recent updates, which we reported earlier today.

More specifically, the Core Team indicated that the protocol v19.9 migration was successfully completed, which was a major milestone announced just a couple of weeks after the project was updated to v19.6.

This means that the next protocol version is v20.2, which the team hopes will be implemented before the 2026 Pi Day – March 14.

The team reminded once again that all node operators who must use desktop computers and laptops instead of mobile devices have to upgrade to the current protocol version. Otherwise, they could be disconnected from the network.

PI’s surge to a two-week high now means that the asset has gained over 14% in the past month. This is in stark contrast to most other larger-cap cryptocurrencies, including BTC, ETH, SOL, and XRP, all of which are down monthly. In some cases, such as BNB, XRP, and SOL, the monthly declines are by double digits.

What could be a worrying sign for the PI bulls is the rising number of tokens scheduled to be unlocked in the next couple of weeks. Data from PiScan shows that the average number of coins to be released daily will be around 6.8 million, but several days will see more than 11 million.

You may also like:

March 7 will be a record-setting day, with almost 21 million coins to be unlocked. This could intensify the immediate selling pressure on the asset if investors decide to dispose of their long-awaited tokens.

U.S. President Donald Trump and Coinbase CEO Brian Armstrong met behind closed doors shortly before the president said bankers are trying to undermine the GENIUS Act in a Truth Social post, CoinDesk confirmed.

“The U.S. needs to get Market Structure done, ASAP. Americans should earn more money on their money,” Trump said in the post on Tuesday. “The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda that will end up going to China, and other Countries if we don’t get The Clarity Act taken care of.”

Politico first reported the meeting between Armstrong and Trump. Afterward, the president publicly backed Coinbase’s “position in [the] ongoing lobbying clash with banks that has derailed a major cryptocurrency bill.”

The news outlet cited “two people with knowledge of the matter who were granted anonymity to discuss a closed-door matter” as the source of the meeting between Trump and Armstrong. It also said it was unclear what they both discussed during the meeting.

However, it reiterated, “it came just before Trump wrote on social media that banks ‘need to make a good deal with the Crypto Industry’ in order to advance digital asset legislation that has stalled on Capitol Hill.”

The White House and Coinbase have not responded to a CoinDesk request for comment.

The market structure bill has been stalled since the Senate Banking Committee lawmakers were set to debate and vote on it. The point holding back the passage of the crypto bill is that banks argue stablecoin interest rates could affect bank deposits and therefore, particularly, their lending ability. Crypto exchanges say individuals should be able to earn rewards on their stablecoins holdings, which they say the GENIUS Act allows.

JPMorgan CEO Jamie Dimon Tuesday said that stablecoin issuers that pay interest on customer balances should be regulated like banks. Patrick Witt, the executive director of the President’s Council of Advisors for Digital Assets, pushed back against Dimon, saying “the deceit here is that it is not the paying of yield on a balance per se that necessitates bank-like regulations, but rather the lending out or rehypothecation of the dollars that make up the underlying balance.” Witt also said the GENIUS Act “explicitly forbids stablecoin issuers from doing the latter. Stablecoins ≠ Deposits.”

Crypto-related stocks, including COIN, jumped Wednesday amid a broader surge in crypto prices. COIN climbed above $200, seeing its highest price since late January.

While ADA rebounds, whale dumping keep it on shaky ground.

The cryptocurrency market witnessed a notable resurgence over the past 24 hours, with Cardano’s ADA following the green wave.

Nonetheless, the whales’ recent actions signal that a new correction might be knocking on the door.

The Bears Remain in Charge

ADA climbed above $0.27 today (March 4), gaining about 3% on a daily scale, though it remains down roughy 2% over the past week. Its decline during that period coincides with a sell-off by large investors.

The renowned analyst Ali Martinez revealed that whales have ‘redistributed’ 230 million tokens: a stash currently valued at around $63 million. This cohort of investors now controls less than 13.7 billion ADA, or roughly 37% of the asset’s circulating supply.

Since his graph shows a sizeable reduction in their holdings, it could be regarded as a significant sell-off that might weigh on the price for several reasons. They boost the amount of ADA available on the open market, and without a matching rise in demand, that extra supply can suppress the valuation. Whale distribution also signals weakening conviction among large holders, a shift that smaller investors may find worrying and cause them to cash out as well.

It is important to note that the behaviour of the big investors over the past week contrasts with their buying spree in recent months. As CryptoPotato reported, they purchased almost 820 million ADA between August 2025 and February this year.

Despite its daily resurgence, Cardano’s native token is still struggling to break out of its broader bearish pattern. Earlier this week, Martinez outlined $0.245, $0.112, and $0.051 as the next three lines of defense for the asset should it head south again.

You may also like:

Meanwhile, the popular trader Jake Gagain described ADA as one of his worst investments since entering the crypto market. His remarks sparked a heated debate, with some X users sharing his thesis, while others argued that his timing was bad and insisted that “the best is yet to come.”

The Bullish Signs

On the other hand, some technical indicators suggest Cardano’s native cryptocurrency could make a decisive comeback soon. For instance, ADA’s exchange netflows have been predominantly negative over the last few months. This means that investors continue to move coins from centralized platforms to self-custody, thereby reducing immediate selling pressure.

Next on the list is ADA’s Relative Strength Index (RSI), which has fallen below 30 on a weekly scale. The technical analysis tool ranges from 0 to 100, and readings above 70 signal that the asset is overbought and due for correction. Conversely, anything beneath 30 is considered a buying opportunity.

X user Sssebi noted the development, saying that “historically ADA has never been this oversold, which makes it one of the most undervalued projects.”

Bitcoin BTC$73,725.61 should be trading higher than it is today.

That’s the view of Kevin de Patoul, CEO and co-founder of crypto investment firm Keyrock, who argues that the market is misreading both macro conditions and structural progress in digital assets.

The world’s largest cryptocurrency was trading around $73,000 at the time of publication. Bitcoin is down about 18% year-to-date, having reached an all-time high of around $125,000 in early October last year.

“If you go back to early 2025 through 2026 and look at all the positive developments such as regulatory progress and institutional adoption, most people would have said that should make the price explode,” de Patoul said. “Increasing macro uncertainty should increase bitcoin demand, and yet it hasn’t.”

Instead, BTC has spent much of the past nine months under pressure, still behaving like a risk-on asset rather than the risk-off hedge many proponents claim it to be. Capital that flowed aggressively into bitcoin over the past 18 months, largely institutional, now appears more tactical than ideological.

“It’s still priced as a risk-on asset. Last in, first out in terms of capital allocation,” he said. “If investors perceive it that way, then in periods of stress they reduce exposure.”

Crypto assets have delivered a muted performance over the past six months, with bitcoin drifting well below its prior highs and much of the altcoin market struggling to sustain momentum. Trading volumes have thinned, volatility has compressed and broad-based rallies have failed to materialize, marking a sharp contrast to the speculative surges of previous cycles. Even as institutional adoption and tokenization efforts advance in the background, price action has remained subdued, reflecting cautious capital flows and a market searching for its next catalyst.

De Patoul stops short of saying the market is wrong. But he struggles to reconcile the pullback with the broader backdrop. “Nothing really explains the recent drop unless there’s a misunderstanding of the type of asset it’s supposed to be.”

That disconnect is emblematic of what he sees as crypto’s current moment: not a breakout cycle, but a structural transition.

“We’re not issuing stablecoins or taking retail deposits, but we’re connected to everything and provide liquidity across all venues,” de Patoul said. “That gives us a front-row seat to the evolution, and lets us participate in the market as it shifts toward digital assets and tokenized infrastructure.”

A tale of two markets

From Keyrock’s vantage point, working with banks, asset managers, issuers and exchanges, 2026 feels less like stagnation and more like rewiring.

“2026 feels like a transition year rather than a breakout one,” de Patoul said. “A lot of what defined crypto in previous cycles is dying out faster than expected, while the parts that actually make sense are still being built, like real finance moving onchain.”

In his view, two largely uncorrelated markets are developing in parallel.

The first is the crypto-native ecosystem: decentralized finance (DeFi), altcoins and the familiar cycle of liquidity and hype. Here, sentiment is subdued. The rising tide that once lifted all tokens has receded. Broad-based speculative rallies are harder to sustain, replaced by “very precise opportunities that make sense,” he said.

The second is the digitization of traditional finance. Tokenized money market funds, stablecoins, onchain funds and new market infrastructure. On that side, he says, he remains as enthusiastic as ever.

“When I speak to institutions, nothing has changed. The level of enthusiasm, the level of building, none of that drive has slowed,” de Patoul said. “The aim is to make crypto assets more accessible to clients and to rewire parts of financial markets.”

These institutional efforts are less sensitive to bitcoin’s price swings. Stablecoins, tokenized funds and settlement rails are about upgrading financial plumbing, not speculating on crypto’s next rally. Circle’s (CRCL) IPO and partnerships like Apollo’s tie-up with DeFi protocol Morpho reflect multi-year commitments, he noted.

But while the assets have been tokenized, the utility layer is still under construction.

Built, but not yet useful

The past 18 months marked a leap from concept to product. Funds were tokenized. Stablecoins proliferated. Infrastructure was deployed.

Yet liquidity remains thin in many tokenized money market funds and real-world assets (RWAs). The tokens exist, but often function as wrappers rather than transformative instruments.

“They’ve built the token. Now the question is: where can it be used? Who accepts it? Can it be used as collateral? Can it bring liquidity at scale?” de Patoul said.

Tokenizing a fund can, paradoxically, cut it off from traditional capital pools without immediately unlocking digital-native benefits. The bridge between traditional institutions and onchain markets, the ability to use tokenized assets seamlessly across both worlds, takes time.

“We’re stuck in an in-between phase,” he said. “The pieces are there. The next step is putting them together to bring liquidity at scale.”

That’s why he sees 2027 and 2028 as the real inflection point.

Traditional capital markets are orders of magnitude larger than crypto. Even a small percentage migrating onchain could eclipse crypto’s previous peak.

“In the course of 2027, we could get to a situation where RWAs grow to be as big as the whole of crypto was in the past,” de Patoul said. “It’s going to play out over the next two to three years.”

Digital finance, in other words, may outgrow crypto, though not necessarily in the form of a price-led boom.

“If the utility were fully there today, we’d probably have a booming market,” he said. “But it’s not. This is a transition phase.”

Keyrock’s bet

Founded eight years ago on the thesis that all assets would eventually be digital and onchain, Keyrock is positioning itself as a bridge between traditional and digital finance.

Historically rooted in capital markets and market-making, the firm continues to expand its crypto-native offerings, derivatives trading, liquidity provision and tailored strategies for investors. In September, it launched Keyrock Asset Management, adding a second pillar to the business. Assets under management remain modest given the recent launch, de Patoul said.

The broader ambition is to evolve from tokenization toward functionality: making digital assets genuinely useful at scale.

“A very big focus for us is how you move from tokenizing products to making those assets useful, and tokenizing at scale,” he said.

Regulatory clarity remains a gating factor. De Patoul points to the proposed Clarity Act as a “yellow flag,” not because he doubts its eventual passage, but because timing matters. “If it’s derailed for two years, it will have a meaningful impact,” he said. “Regulations getting passed is a massive deal for institutions. That’s when they can invest at scale.”

For now, crypto’s price action may feel uninspiring. But from de Patoul’s vantage point, the quiet build-out of digital market infrastructure is far more consequential than a short-term rally.

“The foundations are going in,” he said, “but the scale is yet to come.” This is why he sees “2027 and 2028 as the real inflection point for digital markets.”

Read more: JPMorgan bullish on crypto for rest of year as institutional flows set to drive recovery