Crypto World
Kraken xStocks Tops $25B in Volume, 80K+ On-Chain Holders
Kraken’s tokenized equities platform, xStocks, has surpassed $25 billion in total transaction volume in under eight months since its launch, signaling accelerating adoption of tokenized assets among mainstream investors. Kraken disclosed the milestone on Thursday, noting that the figure covers trades executed across both centralized and decentralized venues, as well as minting and redemption activity. The jump represents a 150% increase from the $10 billion milestone reached in November, the point at which xStocks first crossed that threshold. The tokens are issued by Backed Finance, a regulated asset provider delivering 1:1 backed tokenized representations of publicly traded equities and exchange-traded funds, with Kraken serving as a primary distribution and trading venue. Since its 2025 debut, xStocks has expanded to more than 60 tokenized equities, including notable exposures to major U.S. technology leaders such as Amazon, Meta Platforms, Nvidia and Tesla. The momentum in on-chain activity has been a central driver of growth, with on-chain trading volume totaling $3.5 billion and more than 80,000 unique on-chain holders. On-chain trading, conducted directly on public blockchains, offers transparency and self-custody of assets, a contrast to trading confined to centralized exchange order books. The rise in on-chain participation suggests users are not only trading tokenized equities but also integrating them into broader decentralized finance ecosystems. Eight of the 11 largest tokenized equities by unique holder count are now part of the xStocks ecosystem, underscoring its growing market share in this nascent segment.
Key takeaways
- xStocks reached $25 billion in total transaction volume within eight months of launch, incorporating centralized, decentralized, minting, and redemption activity, a 150% rise from the $10 billion mark seen in November.
- On-chain activity is a major growth driver, with $3.5 billion in on-chain trading volume and more than 80,000 unique on-chain holders to date.
- At launch, xStocks offered more than 60 tokenized equities; eight of the 11 largest tokenized equities by holder count are now within the xStocks ecosystem.
- Tokenized real-world assets (RWAs) continue to gain traction, with tokenized RWAs up 13.5% in the past 30 days and tokenized stocks reaching a $1.2 billion market capitalization in December.
- The structure involves Backed Finance issuing 1:1 backed tokenized representations of publicly traded securities, while Kraken remains a key distribution and trading channel.
Sentiment: Bullish
Market context: The ongoing expansion of tokenized equities fits into a broader trend toward real-world asset tokenization, where liquidity, transparency, and cross-venue settlement are increasingly appealing to investors seeking alternative exposure beyond traditional markets. While the broader crypto market has experienced volatility, demand for tokenized RWAs and on-chain settlement continues to grow, reflecting a diversification dynamic within digital asset ecosystems.
Why it matters
The milestone achieved by xStocks matters for several reasons. First, it demonstrates tangible monetizable traction for tokenized equities in a relatively short window, suggesting that institutions and individual investors are testing the feasibility of on-chain settlement and custody for traditional securities. By reaching $25 billion in total volume, xStocks signals that tokenization is moving beyond a niche experiment toward a scalable model that could reshape how investors access equity exposure. The fact that nine-figure volumes are now a routine attribute of a regulated tokenized product adds a layer of credibility to the broader tokenization narrative.
Second, the architecture underpinning xStocks—where Backed Finance issues 1:1 backed tokenized shares and Kraken provides distribution and liquidity—highlights a credible pathway for regulatory-aligned asset digitization. The 1:1 backing is a key feature designed to address concerns about the legal and financial solidity of tokenized assets, while Kraken’s established trading infrastructure offers a familiar on-ramp for traders who want to access tokenized equities without abandoning traditional market workflows. This combination could help bridge traditional exchanges and on-chain markets, potentially accelerating adoption among both retail and institutional participants.
Third, the on-chain growth underscores a broader DeFi-enabled use case for tokenized equities beyond mere trading. With $3.5 billion in on-chain volume and more than 80,000 unique holders engaging on public blockchains, participants are increasingly integrating tokenized stocks into cross-contract and cross-chain strategies. This points to a maturing ecosystem where tokenized assets intersect with liquidity protocols, lending and yield-generating strategies, and other DeFi innovations. If on-chain participation continues to rise, it could spur new product possibilities — such as on-chain custody solutions, collateralization for loans, or liquidity provisioning keyed to tokenized stock tokens — expanding the utility of tokenized equities beyond price discovery alone.
Lastly, the data showing eight of the 11 largest tokenized equities by holder count being part of xStocks signals meaningful market share gains. It suggests that a core subset of tokenized equities is achieving stronger network effects, attracting more funds and holders, and potentially driving more issuers and asset classes into the tokenization fold. While tokenized RWAs have demonstrated resilience and growth in a challenging market environment, tokenized stocks now appear to be carving out a distinct, investable niche within the broader crypto and digital asset landscape.
The outlook remains contingent on several external factors, including regulatory clarity across jurisdictions and the pace of mainstream adoption. As tokenized assets evolve, observers will be watching for new tokenized equities, expanded custodial and settlement mechanisms, and additional platforms embracing tokenized securities with similar architectures to Backed Finance. The trend toward real-world asset tokenization is not a fleeting one; it represents a structural development in how markets can be accessed and transacted on-chain, potentially altering liquidity dynamics and the composition of investment portfolios for years to come.
What to watch next
- Continued growth in on-chain trading volume and the number of unique on-chain holders for xStocks, with a focus on whether momentum persists beyond the current milestone.
- Expansion of tokenized equities beyond the initial lineup of more than 60 tokens, including new assets and potential broadened access to additional market segments.
- Regulatory developments affecting tokenized securities and standardized on-chain settlement, including any jurisdictional approvals or clarifications that could facilitate broader deployment.
- Integration opportunities with DeFi ecosystems, such as enhanced liquidity provision, collateralization options, and new yield-based use cases for tokenized equities.
Sources & verification
- Kraken’s public disclosure detailing the $25 billion total transaction volume milestone and the scope of trade types (centralized, decentralized, minting, redemption).
- Launch specifics: xStocks initially offered over 60 tokenized equities, including exposure to Amazon, Meta Platforms, Nvidia and Tesla, as cited in the disclosure.
- On-chain activity metrics: $3.5 billion in on-chain trading volume and 80,000+ unique on-chain holders as reported by Kraken.
- Tokenized RWAs performance: 13.5% growth in tokenized RWAs over 30 days and Token Terminal data indicating tokenized stocks reached a $1.2 billion market cap in December.
Momentum for tokenized equities grows as xStocks hits $25B in total volume
Kraken’s tokenized equities platform, xStocks, has demonstrated unaudited momentum by surpassing $25 billion in total transaction volume less than eight months after launch. The achievement spans a blend of centralised and decentralised trading activity, as well as the minting and redemption of tokenized assets. In a market environment where crypto prices have fluctuated, the acceleration in tokenized equity volumes showcases growing investor curiosity about on-chain settlement, transparent asset representation, and regulated issuance models. The milestone is framed by the fact that xStocks began life in 2025 with a catalogue of more than 60 tokenized equities, a roster that included shares tied to Amazon, Meta Platforms, Nvidia and Tesla, among others.
According to Kraken, the $25 billion figure captures trading that occurs across both traditional exchange venues and decentralized trading channels, reflecting a broader push to digitize publicly traded securities. The platform’s issuer, Backed Finance, provides 1:1 backed representations of the underlying stocks and ETFs, offering a structured path for investors to own tokenized shares with clearly defined backing. Kraken positions itself as a gateway for such instruments, handling distribution and trading while Backed Finance shoulders the task of token issuance and alignment with real-world assets. This arrangement aligns with a growing appetite for regulated tokenized products that can be traded with familiar market mechanics while benefiting from the transparency of blockchain settlement.
On-chain activity has emerged as a major growth lever. With $3.5 billion in on-chain volume and more than 80,000 unique holders interacting with tokenized equities on public blockchains, the ecosystem is differentiating itself from conventional off-chain trading. On-chain participation implies that investors are comfortable with self-custody and direct visibility into transactions, a dynamic that complements the more traditional off-chain trading seen on centralized exchanges. The increased on-chain activity is also indicative of broader market interest in DeFi-native use cases for tokenized assets, including potential liquidity access, programmable settlement, and cross-venue arbitrage opportunities that leverage the transparent, verifiable nature of blockchain records.
Competitive dynamics within tokenized equities become more meaningful as data show eight of the 11 largest tokenized equities by unique holder count now belong to the xStocks ecosystem. This concentration hints at a rising market share within the tokenized equities space, where a core group of assets is attracting a growing community of holders. The development cements xStocks’ role as a leading force in the early-stage tokenization wave, signaling to issuers and investors that there is tangible, scalable demand for tokenized representations of real-world assets.
Beyond the headline numbers, the broader context underscores a market increasingly comfortable with tokenized real-world assets (RWAs). Tokenized RWAs grew by 13.5% in value over the last 30 days, a period when the overall crypto market moved lower by roughly $1 trillion in market capitalization. Market observers have likened tokenized stocks to a potential “stablecoin moment” for asset tokenization—where rapid early adoption leads to widespread acceptance and predictable use cases. Supporting data from Token Terminal shows tokenized stocks reached a market capitalization of about $1.2 billion in December, marking a notable emergence from a period of minimal presence just half a year prior. This trajectory suggests a broadening base of participants and a more robust, diversified ecosystem for tokenized asset products.
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CME Group, the world’s largest regulated derivatives marketplace, announced plans to begin 24-hour, seven-day-a-week trading of its cryptocurrency futures and options contracts on May 29, 2026, pending regulatory review.
Summary
- Pending regulatory approval, crypto products will move to a 24/7 schedule on the CME Globex platform, with only a brief weekly window for maintenance.
- The shift follows a massive 2025 where CME saw $3 trillion in notional activity, driven by professional traders seeking regulated risk-management tools.
- Beyond Bitcoin and Ether, CME recently broadened its reach by launching futures for Cardano (ADA), Chainlink (LINK), and Stellar (XLM).
CME Group adopts 24/7 crypto trading as competition heats up
The decision marks a significant step in aligning regulated digital-asset derivatives with the continuous nature of global crypto spot markets.
Under the new schedule, CME’s cryptocurrency products will trade continuously on its CME Globex platform, with a brief weekly maintenance window. Any trading conducted from Friday evening through Sunday evening will receive the following business day’s trade date for clearing, settlement and reporting.
CME said that client demand for regulated crypto risk-management tools is at an historic high, driven by record volumes in 2025 when its crypto futures and options saw $3 trillion in notional activity. Average daily volume and open interest have both climbed sharply year-over-year in 2026, underlining robust participation from institutional and professional traders.
The expansion builds on CME’s broader push into digital assets. In early February, the exchange successfully launched futures contracts for Cardano (ADA), Chainlink (LINK) and Stellar (XLM), including both standard and micro sizes, broadening its altcoin derivatives lineup beyond Bitcoin and Ether. Market participants have viewed this as a key step in giving regulated access to a wider range of crypto assets.
However, CME’s push to modernize its markets has faced operational challenges. In November 2025 a cooling-system failure at a CyrusOne data center triggered a major outage that halted futures trading across cryptocurrencies, commodities, equities and FX, highlighting infrastructure risks as trading demand intensifies.
As crypto continues its integration into mainstream finance, round-the-clock regulated trading at CME could help close the gap between always-on digital markets and traditional exchange hours — offering traders more flexibility and risk management options around the clock.
Minneapolis Federal Reserve President Neel Kashkari delivered a blistering critique of the cryptocurrency industry on Thursday, dismissing digital assets as “utterly useless” and characterized by “word salad” marketing rather than functional utility.
Summary
- Kashkari argued that after over a decade, crypto has failed to provide a compelling use case for U.S. consumers, unlike AI tools which have seen rapid, practical adoption.
- He dismissed the “instant” cross-border payment narrative, noting that recipients must still pay high costs to convert crypto into local currency for daily essentials.
- The Fed official asserted that existing domestic tools like Venmo and Zelle already outperform stablecoins, and warned that nations will not abandon independent monetary policies for a unified crypto platform.
Speaking at the 2026 Midwest Economic Outlook Summit, Kashkari challenged the fundamental value proposition of cryptocurrencies and stablecoins.
During a fireside chat, he contrasted the tangible economic impact of Artificial Intelligence with the decade-long history of crypto, which he argues has failed to integrate into the real economy.
Kashkari’s crypto “grocery store” test
Kashkari was particularly skeptical of the claim that crypto excels at cross-border payments. Using a personal example, he described the hurdles of sending money to family in the Philippines. While proponents claim crypto offers “instant” transfers, Kashkari argued the logic falls apart at the point of sale.
“How does [a recipient] buy groceries with it?” Kashkari asked the audience.
“They still have to convert it to the local currency, and that is still expensive. What advocates are really saying is that if everyone in the world used the same platform, friction would disappear, but nations are not going to abandon their own monetary policies.”
Demanding clarity over “buzzwords”
The Fed official urged the public and policymakers to stop settling for vague explanations. He described much of the industry’s rhetoric as a “buzzword salad,” noting that most “innovations” offered by stablecoins are already handled efficiently by existing domestic tools like Venmo or Zelle.
“Ask the most basic questions and don’t settle for nonsense,” Kashkari warned. “Whenever I make people really explain how this thing actually works, there’s just nothing there.”
The remarks highlight a growing divide in 2026 between the central bank’s skepticism and the commercial sector’s expansion, coming just hours after the CME Group announced plans to move toward 24/7 crypto derivatives trading to meet institutional demand.
Another week has ended, and Friday has arrived, which means another batch of Bitcoin options contracts is expiring while spot markets remain sideways.
Around 30,600 Bitcoin options contracts will expire on Friday, Feb. 20, with a notional value of roughly $2 billion. This event is a little smaller than last week’s expiry, so there is unlikely to be any impact on spot markets.
Crypto markets are in bear market territory, but have remained flat over the past week as volume and volatility dry up.
Bitcoin Options Expiry
This week’s batch of Bitcoin options contracts has a put/call ratio of 0.59, meaning that there are more expiring calls (longs) than puts (shorts). Max pain is around $70,000, according to Coinglass, which is above current spot prices, so many will be out of the money on expiry.
Open interest (OI), or the value or number of Bitcoin options contracts yet to expire, remains highest at $60,000 with $1.2 billion and $1 billion at $50,000 strike prices on Deribit as bearish bets increase. Total BTC options OI across all exchanges has been climbing this month and is at $36.5 billion.
“Positioning skews call heavy across both assets, with BTC showing the stronger upside skew,” said Deribit.
Meanwhile, derivatives analyst Laevitas observed that “downside protection remains in demand,” noting 2,140 BTC worth of puts at $58,000 recently bought.
🚨 Options Expiry Alert 🚨
At 08:00 UTC tomorrow, over $2.4B in crypto options are set to expire on Deribit.$BTC: ~$2.0B notional | Put/Call: 0.59 | Max Pain: $70K$ETH: ~$404M notional | Put/Call: 0.75 | Max Pain: $2,050
Positioning skews call heavy across both assets, with… pic.twitter.com/pgl2z4ZGJ6
— Deribit (@DeribitOfficial) February 19, 2026
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In addition to today’s batch of Bitcoin options, around 212,000 Ethereum contracts are also expiring, with a notional value of $404 million, max pain at $2,050, and a put/call ratio of 0.75. Total ETH options OI across all exchanges is around $6.8 billion.
This brings the total notional value of crypto options expiries to around $2.4 billion.
Spot Market Outlook
Total market capitalization has been flat for the past 24 hours and since the beginning of the week, hovering around $2.37 trillion, down 46% from its peak. Bitcoin has slowly eroded since Monday, hitting a weekly low of $65,700 in late trading on Thursday before recovering to $67,290 at the time of writing on Friday morning in Asia.
Resistance is forming at $70,000, with support still just above $60,000, and this seems to be the closest target. There has been no movement in Ether prices, which have started to consolidate around $1,950. The rest of the altcoins remain flat at bear market bottoms.
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Crypto prices firmed during Asia’s Friday morning session, with bitcoin climbing toward $68,000 after a choppy week that tested nerves across risk markets.
The bounce was broad. XRP, Solana’s SOL, and Cardano’s ADA added upto 2% while ether lagged with a small dip, hovering below $2,000 as traders treated the level as a line that needs defending rather than celebrating.
The move had the feel of a relief rally more than a clean turn. After weeks of sharp swings, the market has started reacting in waves. A quick push higher draws in dip buyers, then selling appears as soon as price reaches a level where trapped holders can exit with less pain. The difference this week is that each rebound has looked a little less fragile, suggesting forced selling is easing even if conviction buying has not returned in size.
Macro and geopolitics are doing their part to keep traders cautious. Gold steadied near $5,000 an ounce after two sessions of gains as investors priced rising Middle East risk.
US President Donald Trump said Thursday he would allow 10 to 15 days for talks on a nuclear deal with Iran, while American forces reportedly built up in the region. That mix has supported haven demand and made it harder for risk assets to build momentum.
FxPro chief market analyst Alex Kuptsikevich framed the broader backdrop as bearish.. He said that given the market’s prior dynamics and the more cautious tone in US stocks, the odds increase of a retest of local lows, pointing to levels last seen in the second half of 2024.
On ether, he said the token is sitting on a long running support line that traces back to 2020 and lines up with the $2,000 area, but added that a true breakdown would need confirmation through a drop below recent lows around $1,500.
Under the surface, some indicators hint that big holders may be positioning to sell into strength. CryptoQuant says bitcoin inflows from large holders to Binance have reached record levels, a pattern that can precede heavier spot supply.
Research shop K33 has compared current conditions to the later stages of the 2022 bear market that gave way to a long, grinding consolidation.
The result is a market that can bounce, but struggles to turn rebounds into a trend until spot demand grows louder than the sellers waiting at the next round number.
Bitcoin’s (BTC) market structure shifted into a corrective phase after losing a key onchain valuation level in late January.
Glassnode data shows that BTC’s price is compressing within a 2024-era demand zone as liquidity conditions soften. At the same time, BTC’s supply is steadily shifting into long-term, retail-linked wallets while exchange activity has cooled.
This mix of technical and onchain data, along with the current capital rotation, may shape the next steps for Bitcoin price.
Bitcoin lost its active supply cost price, but holders defend $60,000
In its weekly “The Week On-chain” report, Glassnode said that BTC’s recent price dip accelerated due to breaking below its true market mean near $79,000 in January, which is the cost basis of the tracked active supply.
Since then, the price has stabilized inside a dense $60,000 to $69,000 range, which is being defended by medium-term holders. One of the reasons this zone has been a strong support is because of the age of coins within this range for the majority of 2024.
Coins accumulated in that range have aged more than a year, placing a large cohort close to breakeven. This supply may be acting as a backstop on the current sell pressure.
Market analyst Ardi pointed to a similar dynamic, writing on X:
“We’re trading inside the same $53-73K range that took 245 days to build last year. Think about how much volume went through this zone. This is the most contested zone on BTC’s entire chart right now.”
Glassnode also highlighted that, in past cycles, deeper bear phases have gravitated toward the realized price, which now stands near $54,900. The metric estimates the average acquisition cost of all circulating coins.
Bitcoin’s liquidity conditions also remain compressed. The 90-day realized profit/loss ratio has declined back into the 1–2 range, a level associated with limited capital rotation. A sustained move below 1 has aligned with stressed bear environments.
Related: Google searches for ‘Bitcoin going to zero’ at highest since 2022
BTC accumulation rises even as activity slows down
CryptoQuant data shows that the balances held by accumulating address cohorts have continued rising into early 2026. Total BTC held by these cohorts has expanded to over 4 million BTC, up from roughly 2 million BTC in early 2024, which reflects a steady supply absorption.
The retail-linked accumulation addresses have increased their holdings by 850,000 BTC, while the accumulating pattern wallets, addresses that steadily add BTC in recurring intervals with minimal outflows, increased their size to 1.27 million BTC. This expansion occurred even as the price dropped in 2026.
In contrast, the inflows from centralized-exchange addresses and highly active addresses have moderated. Compared with the 2023 to 2024 expansion phases, where inflow spikes frequently exceeded 1.2 million to 1.5 million BTC, the recent activity has remained significantly lower, averaging 300,000 BTC to 400,000 BTC.
The divergence shows that more BTC is being absorbed into long-term wallets while fewer coins are rotating through major exchanges. That reduces the liquid supply and slows down short-term trading activity.
Related: Bitcoin’s consolidation nears ‘turning point’ as $70K comes in focus: Analyst
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
TLDR:
- Metaplanet CEO Simon Gerovich rejects anonymous claims of hidden Bitcoin buys and poor disclosure practices.
- Four September Bitcoin purchases were each disclosed promptly via the company’s live public dashboard.
- Selling put options lowers Bitcoin acquisition costs below spot, not a directional price bet.
- Metaplanet’s Bitcoin-per-share KPI surged over 500% in 2025 despite stock price volatility.
Metaplanet’s CEO has gone on the offensive. Simon Gerovich addressed a wave of anonymous allegations targeting the Japanese Bitcoin treasury firm.
The criticism questioned the company’s disclosure practices, options trading approach, and September Bitcoin purchases. Gerovich pushed back point by point, calling several claims factually inaccurate.
Metaplanet CEO Challenges Claims Over Bitcoin Purchases and Disclosure Practices
The September Bitcoin purchases drew particular scrutiny. Critics alleged the company bought near a local price peak and stayed quiet about it.
Gerovich acknowledged the timing but rejected the narrative entirely. He confirmed four separate purchases were made that month, each disclosed promptly through the company’s public dashboard.
Metaplanet publishes all Bitcoin wallet addresses openly. Shareholders can verify holdings in real time through a live dashboard the firm maintains.
Gerovich cited this as evidence the company operates with unusual transparency for a listed entity. He described it as one of the most open corporate structures in the market.
The company’s accumulation approach is systematic, not speculative. Gerovich emphasized that Metaplanet does not attempt to time Bitcoin’s price.
Every purchase gets disclosed regardless of prevailing market conditions. That policy has remained consistent throughout the firm’s accumulation period.
Gerovich took direct aim at anonymous accounts spreading the allegations. He stated he would not tolerate the distribution of false information to shareholders navigating a volatile market.
He also noted his personal financial exposure as a major shareholder, having invested his own capital into the company.
Options Trading Strategy and Financial Metrics Addressed Directly
The criticism around options trading reflected a misreading of strategy, according to Gerovich.
Selling put options is not a directional bet on Bitcoin rising. It is a method to acquire Bitcoin below the spot price by collecting option premiums upfront. He walked through a specific example to illustrate the mechanics.
In his post, Gerovich described a scenario where spot Bitcoin trades at $80,000.
Selling a put at that strike and collecting a $10,000 premium brings the effective acquisition cost to $70,000. The strategy exploits elevated volatility to lower average entry prices. In Q4, he said, the approach meaningfully reduced Metaplanet’s effective Bitcoin costs.
On financials, Gerovich challenged the use of net profit as an evaluation metric. He pointed to 6.2 billion yen in operating profit, representing 1,694% year-over-year growth.
Ordinary losses stem from unrealized valuation changes on long-term Bitcoin holdings the company has no plans to sell. He called drawing negative conclusions from that line item a misreading of the statements.
Bitcoin per share, the company’s primary KPI, rose over 500% in 2025. The hotel business generated 437 million yen in sales revenue and 169 million yen in operating profit. Borrowing arrangements were disclosed three times across facility establishment and two drawdowns.
Specific lender details and interest rates were withheld at the counterparty’s request, Gerovich said.
The White House is pressing ahead with negotiations between crypto industry representatives and banking lobbyists to shape stablecoin provisions within a broader crypto market-structure bill. In the third face-to-face session held in about two weeks, participants attempted to close gaps that have stalled the legislation amid broader regulatory scrutiny. While no deal emerged on Thursday, attendees signaled progress as a White House adviser urged a compromise: allow third parties, such as exchanges, to offer stablecoin rewards only in connection with transaction activity rather than linking yields to customers’ idle balances. The talks followed earlier meetings on February 2 and February 10, underscoring the urgency of delivering a coherent framework for how U.S. regulators would police the evolving crypto landscape.
Key takeaways
- The current round of talks produced incremental language alignment but stopped short of a binding agreement on how stablecoin rewards should be governed under the market-structure bill.
- A prominent proposal centers on tying stablecoin rewards to transactional activity rather than balances, a stance intended to address banking concerns about competitive pressures.
- Participants highlighted the need for clear legislative language to unlock broader crypto-market structure reform, with industry and banking voices urging pragmatism and collaboration.
- Public remarks from executives at Coinbase (EXCHANGE: COIN) and Ripple underscored a constructive and cooperative tone, even as substantive policy divides remain.
- The Senate’s path for the related market-structure bill remains uncertain, with prior House passage of a CLARITY Act variant not yet mirrored in Senate approval.
- Plans for continued negotiations were already on the table, with banks slated to reconvene to decide whether the trade-off could win broader support.
Tickers mentioned: $COIN
Sentiment: Neutral
Market context: The unfolding discussions sit at the crossroads of regulatory clarity, innovation incentives, and risk management as policymakers weigh how to normalize stablecoins within the traditional financial system while maintaining consumer protections and financial stability.
Why it matters
At stake is a path to regulatory clarity that could unlock broader participation in the crypto economy while preserving the safeguards that lawmakers insist are necessary for a rapidly evolving sector. The debate over stablecoin rewards directly touches liquidity, market integrity, and how digitized fiat-backed assets integrate with traditional banking rails. By steering a compromise toward transaction-based rewards rather than balance-based yields, policymakers aim to strike a balance between incentivizing innovative finance and preventing scenarios that could undermine deposit stability or create unfair competitive dynamics for banks.
The discussions reflect a broader tension in Washington: policymakers want to enable responsible innovation without ceding market stability or consumer protection. The involvement of high-profile industry players signals that the issue has moved beyond a narrow policy skirmish and into a cornerstone debate about how stablecoins will function within the U.S. financial system over the coming years. As negotiators press on, the outcome could influence how wallets, exchanges, and other third parties design reward structures and attract user participation in a regulated, compliant manner.
Observers note that the White House is prioritizing a pragmatic, language-driven approach—one that narrows disagreements step by step while keeping the door open to a broader legislative package. The degree of progress achieved in the latest talks—though not a resolution—suggests that a consensus on core concepts may still be within reach, provided sufficient alignment on the role of third-party reward programs and the safeguards designed to protect depositors and the broader financial system.
What to watch next
- Whether banks will sign off on the transaction-based rewards framework and what concessions might be required to gain bipartisan support.
- The timing and framing of the next White House-facilitated session, including any public statements from the involved parties.
- Any movement in the Senate on the market-structure bill or related amendments, following earlier House passage of a CLARITY Act variant.
- Follow-up remarks from Coinbase (EXCHANGE: COIN) and Ripple, and whether new language clarifies the role of third-party reward programs.
Sources & verification
Progress, trade-offs shape White House discussions on stablecoins and market structure
The third formal session between White House policy staff, crypto executives, and banking lobbyists unfolded as part of a broader push to finalize language for a market-structure bill that would redefine how regulators oversee the crypto sector. The gathering, described as constructive but inconclusive, occurred roughly 16 days after the initial February meeting and followed a second discussion eight days later. A central theme was a proposed compromise that would permit third parties—such as exchanges and other service providers—to offer stablecoin rewards only in relation to transaction activity, not as returns on idle balance holdings. This shift aims to dampen potential incentives for large sums to accumulate in wallets simply to generate yield, a factor cited by banks as a competitive pressure that could distort traditional banking models.
During the talks, participants signaled progress in narrowing differences on language that would codify how stablecoins are treated within the broader regulatory framework. The dynamic highlighted the delicate balance between fostering innovation and maintaining financial stability. In a notable development, the session included representatives from the crypto industry who advocate for reward programs that align with transaction-based engagement, balanced by bankers’ concerns about depositor protection and systemic risk. The discussions also foregrounded the practical role of third-party platforms in delivering stablecoin rewards, a line of inquiry that could influence how wallets, exchanges, and payment rails interoperate under a regulated regime.
On the record, executives from the involved crypto firms described the session as a step forward. After the meeting, Ripple’s chief legal officer offered a succinct update: the teams had “rolled up our sleeves and went through language today,” signaling that specifics were being mapped out in detail. In parallel, Coinbase described the tone as constructive and cooperative, underscoring a shared interest in advancing policy that would provide clarity without stifling innovation. A separate note from the Blockchain Association framed the meeting as a productive progression toward resolving outstanding questions about stablecoin rewards and moving the legislation closer to a vote.
The concessions under discussion would have to survive scrutiny from both chambers of Congress and the White House, given the competing priorities that have characterized crypto regulation for years. A point of friction remains the concept of “idle balance yields” versus activity-based rewards, a distinction that lawmakers and industry participants have wrestled with since early discussions. Semafor’s coverage referenced internal discussions and comments from participants indicating that the debate has shifted toward activity-based incentives, while the idea of earning yield simply from holding stablecoins has been effectively sidelined in the near term.
The banking sector has framed its concerns around competitive pressures more than deposit flight, a nuance echoed by some participants who emphasized that the issue is as much about maintaining a level playing field as about liquidity risk. The broader regulatory conversation includes a separate line of analysis around the potential macro implications of widespread stablecoin use, with Treasury authorities having previously estimated that rapid mass adoption could catalyze significant deployment shifts within the traditional banking system. Those considerations underscore why the White House and lawmakers are approaching the negotiation with both urgency and caution, seeking a policy that can be implemented without triggering abrupt dislocations in financial markets.
Looking ahead, observers expect another round of discussions among banking groups to determine whether the proposed language can gain acceptance. The next steps will likely hinge on a mutual willingness to compromise on the reward structure, as well as a clear signal from lawmakers about how quickly the bill could progress through committee and to a floor vote. The ongoing negotiations illustrate the complexity of delivering a unified U.S. stance on stablecoins—one that accommodates the rapid evolution of digital assets while preserving the oversight and safeguards that underpin the mainstream financial system.
Simon Gerovich, CEO of Metaplanet (3350), has responded to online criticism of the Tokyo-listed bitcoin treasury company, as bitcoin is down almost 50% from its October all-time high and now trading near $67,000, while Metaplanet shares have fallen roughly 85% from their 2025 all-time high.
Addressing anonymous critics, Gerovich said, “It’s easy to hide behind anonymous accounts, criticize others, and incite outrage without taking any responsibility.” Gerovich added, “I have no qualms about taking public responsibility for all my statements and Metaplanet’s actions.”
匿名アカウントの裏に隠れて、何の責任も負うことなく他者を非難し、炎上させることは簡単です。しかし、私は自らの発言とメタプラネットの行動すべてに対して公の場で責任を負うことに何の抵抗もありません。そのため、寄せられている各主張に対して、直接お答えします。… https://t.co/e0ieMGq29N
— Simon Gerovich (@gerovich) February 20, 2026
Metaplanet uses options, specifically selling put options and put spreads, to generate premium income and potentially acquire bitcoin below the prevailing market price.
Defending this approach, Gerovich said, “Selling put options is not a bet on bitcoin’s price rising.”
Gerovich explained that the strategy is designed to lower the company’s effective purchase cost and monetise volatility.
On transparency, Gerovich said, “we are one of the most transparent listed companies in the world.” Gerovich pointed to real-time wallet disclosure and repeated announcements of purchases, including those made in September.
Gerovich also acknowledged market timing concerns, he said, “September marked a local peak. I have no intention of denying that.” Gerovich stressed that the strategy is systematic accumulation, not short-term trading.
Lastly, Gerovich responded to criticism of financial results, saying, “Net profit is not an appropriate metric for evaluating a bitcoin treasury company.” Gerovich also rejected claims about the hotel division, stating the business is not in ruins and highlighting its profitability.
Metaplanet shares trade at 307 yen, while the company holds 35,102 BTC.
The White House has reportedly refocused talks between crypto and bank lobbyists on limiting how stablecoin rewards should be paid in the third meeting between the two groups over a crypto market structure bill.
Crypto and banking industry representatives met at the White House on Thursday for the third time in 16 days to discuss stablecoin provisions that have stalled the crypto bill which the Senate is looking to pass.
No agreement was reached on Thursday, but executives at Coinbase and Ripple said progress was made as one of the White House’s crypto advisers urged a trade-off to let third parties, such as exchanges, offer stablecoin rewards only on transaction activity, not balances.
“We rolled up our sleeves and went through specific language today,” Ripple’s chief legal officer, Stuart Alderoty, posted to X on Thursday. Coinbase’s legal head, Paul Grewal, said the meeting was “constructive and the tone cooperative.”
Blockchain Association CEO Summer Mersinger said the meeting was a “step forward” in resolving issues related to stablecoin rewards and ensuring that crypto market structure legislation is advanced.
It’s the third meeting between the three parties, who first met on Feb. 2 and again eight days later on Feb. 10, as the Senate is looking to pass a bill to define how US market regulators will police crypto.
The House passed a similar version of the bill, called the CLARITY Act, in July, but the effort has stalled as the Senate Banking Committee has not yet secured enough bipartisan support to move it forward.
Semafor reporter Eleanor Mueller and journalist Eleanor Terrett both reported that White House crypto adviser Patrick Witt drove the discussion at the latest meeting.
Witt pushed for a previously pitched proposal that would allow third parties to offer stablecoin rewards to customers tied to transactions and activity, and not balances, the latter of which has been a sticking point for banks.
“Earning yield on idle balances, a key crypto industry goal, is effectively off the table,” Terrett said, citing those who attended the meeting. “The debate has narrowed to whether firms can offer rewards linked to certain activities.”
Semafor’s Mueller reported that the banks will start meeting tomorrow to decide whether to agree to the trade-off, and added that discussions would continue in the coming days.
Related: Banks can’t seem to service crypto, even as it goes mainstream
The Bank Policy Institute, American Bankers Association and Independent Community Bankers of America represented the banking industry, none of which have publicly commented on the latest White House meeting.
Banks fear competitive pressures, not deposit flight risk
Banking groups have argued that stablecoin rewards will compete with and undermine the banking system and lead to bank deposits shifting to stablecoins.
The US Treasury estimated in April that mass stablecoin adoption could trigger $6.6 trillion in deposit outflows from the banking system.
However, according to Terrett, one banking member at the meeting said their concerns stem more from competitive pressures than from deposit flight.
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Nearly $2.5 billion in Bitcoin and Ethereum options expire today, setting up a potentially volatile end to the month as traders juggle upside bets with deep downside insurance.
On the surface, positioning appears constructive. But beneath the call-heavy skew lies a striking anomaly: one of the largest open interest clusters in Bitcoin sits far below spot — at the $40,000 strike.
Calls Dominate, But Max Pain Sits Higher
Bitcoin is currently trading around $67,271, with max pain positioned at $70,000. Open interest shows 19,412 call contracts and 11,044 put contracts. This gives a put-to-call ratio of 0.57 and reflects an overall upside bias. The total notional volume tied to the expiry is roughly $2.05 billion.
Ethereum mirrors that constructive tilt, though in a more balanced fashion. ETH trades near $1,948, with max pain at $2,025.
Calls (124,109 contracts) outnumber puts (90,017), resulting in a put-to-call ratio of 0.73 and a notional value of approximately $417 million.
“…positioning skews call heavy across both assets, with BTC showing the stronger upside skew. Max pain levels sit below dominant call open interest in BTC, while ETH positioning is more balanced but still constructive,” analysts at Deribit noted.
Max pain refers to the price at which the greatest number of options expire worthless, minimizing payouts to buyers.
With both BTC and ETH trading below their respective max pain levels, price gravitation toward those strikes into expiry could reduce losses for option sellers.
The $40,000 Put: A Tail-Risk Signal
Despite the headline bullish skew, a massive concentration of puts at the $40,000 strike has caught market attention.
The $40,000 Bitcoin put is now the second-largest strike by open interest, representing roughly $490 million in notional value. This comes after Bitcoin’s sharp retracement from prior highs, which reshaped hedging demand across the board.
“While aggregate positioning into expiry skews call heavy, one strike stands out: The $40K BTC put remains among the largest open interest strikes ahead of February expiry. Deep OTM downside protection demand remains visible on the board, even as headline put/call ratios lean constructive,” Deribit analysts indicated, highlighting the unusual size of the position.
In short, traders may be positioned for upside, but they are unwilling to rule out another volatility shock.
Hedging, Premium, and Structural Implications
The dynamic suggests a broader change in Bitcoin’s derivatives market. Options are increasingly used for directional bets, yield strategies, and volatility management.
Analyst Jeff Liang argued that extracting premium from the options market could reduce structural selling pressure.
“If we can stably extract the premium from the options market and empower Bitcoin HODLers, it means: HODLers no longer need to sell their Bitcoin to improve their lives… Selling pressure on Bitcoin will reduce… This will further drive Bitcoin’s price upward,” he stated.
The analyst described options premium as a “localized pump” driven by fear and greed, one that redistributes value to long-term holders without contradicting Bitcoin’s fixed supply cap.
Overall, calls outweigh puts across both BTC and ETH, signaling that traders retain exposure to a rebound. Yet the sheer scale of deep out-of-the-money hedges reveals a market that remains cautious.
With billions in notional value set to expire, the key question is whether prices drift toward max pain—or whether hidden crash-protection demand proves prescient, reigniting volatility just as traders expect calm.
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