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Crypto Long & Short:

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That is the flaw volatility exposes. Markets have become faster, more global and more interconnected, while capital movement remains slow and fragmented. Closing that gap requires a different way of thinking about cash, collateral and settlement.

Stablecoins are no longer peripheral

Settlement remains one of the weakest links in capital markets. Institutions can execute trades globally in milliseconds, but the transfer of value that supports those trades can still take days. That delay creates funding pressure, operational risk and unnecessary capital drag.

This is where stablecoins become relevant to institutional markets. Strip away the noise and the use case is straightforward: they allow cash-like value to move with the speed and programmability of digital assets. For firms still working around T+1 or T+2 settlement, nostro and vostro accounts, and hard cut-off times, that is not a marginal improvement. It changes what is operationally possible.

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The market has already moved beyond theory. Stablecoin market capitalisation is now around $320 billion, and recent industry data points to record levels of on-chain transfer activity. The more important point, however, is not the headline number. It is that regulated institutions are beginning to treat stablecoins and tokenised cash as settlement infrastructure rather than crypto-market curiosity.

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