Crypto World
Stablecoin Growth Poses a $500B Risk to Bank Deposits and Net Interest Margins
Standard Chartered warns stablecoins could pull up to $500B from bank deposits in developed markets by 2028.
U.S. banks are increasingly at risk of losing deposits to the digital assets space as stablecoins continue to gain traction.
The concern comes amid growing stablecoin adoption, with the total supply in circulation having risen by roughly 40% over the past year to just over $300 billion.
Long-term Funding Concerns
A Bloomberg report citing analysis from Geoff Kendrick, global head of crypto research at Standard Chartered, estimates that stablecoins could cause the exit of as much as $500 billion in deposits from lenders across industrialized nations by the end of 2028. In the U.S. specifically, the firm predicts that bank deposits could fall by an amount equivalent to one-third of the total stablecoin market capitalization.
Kendrick believes that the pace of stablecoin growth is also likely to accelerate following the passage of the Clarity Act, legislation currently moving through Congress that is meant to regulate the digital asset industry.
“U.S. banks also face a threat as payment networks and other core banking activities shift to stablecoins,” he wrote.
One of the most contentious issues between traditional financial institutions and crypto firms is whether stablecoin holders should be allowed to earn yield-like rewards. Coinbase currently offers 3.5% rewards on balances held in Circle’s USDC, a practice that bank lobbying groups argue could hasten deposit losses if allowed to continue.
“The bank lobbying groups and bank associations are out there trying to ban their competition,” said Coinbase chief executive officer Brian Armstrong at the World Economic Forum in Davos last week. “I have zero tolerance for that; I think it’s un-American, and it harms consumers.”
Despite the ongoing dispute, Kendrick expects the broader crypto market structure bill to be approved by the end of the first quarter.
Regional Lenders Identified as Most Vulnerable
To assess which banks face the greatest exposure, the analyst used the net interest margin income as a share of total revenue, describing it as the clearest indicator of deposit flight risk because it is central to NIM generation. Using this measure, regional American financial institutions emerged as being more vulnerable than diversified lenders and investment banks, which are the least exposed.
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Among the 19 US banks and brokerages reviewed, Huntington Bancshares, M&T Bank, Truist Financial, and Citizens Financial Group were identified as facing the highest risk.
Local companies are particularly sensitive to payment outflows because they depend more heavily on traditional lending activities than their larger peers. On the positive side, market performance suggests limited immediate risk.
The KBW Regional Banking Index climbed nearly 6% in January, compared with a little over 1% for the broader metric. In the short term, expected interest rate cuts could reduce deposit costs, while government efforts to stimulate economic activity may support loan growth.
Even so, Kendrick views the longer-term shift as unavoidable.
“An individual bank’s actual exposure to a stablecoin-driven reduction in NIM income will depend largely on its own response to the threat,” he said.
He also highlighted that Tether and Circle, the two dominant stablecoin issuers, hold only 0.02% and 14.5% of their reserves in bank deposits, noting that “very little re-depositing is happening.”
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TLDR:
- TRM Labs secured $70 million in Series C funding led by Blockchain Capital and Goldman Sachs investors.
- The blockchain analytics firm now serves 40% private sector clients as tokenization adoption accelerates rapidly.
- FBI and IRS rely on TRM Labs technology to investigate thousands of cryptocurrency-related criminal cases annually.
- Company reports 500% increase in AI-enabled crypto scams, positioning itself for continued market expansion.
TRM Labs secured $70 million in Series C funding, reaching a $1 billion valuation. The blockchain analytics firm attracted investment from Blockchain Capital, Goldman Sachs, Bessemer, Brevan Howard, Thoma Bravo, and Citi Ventures.
The San Francisco-based company now joins the ranks of crypto unicorns. Its growth reflects increasing demand for blockchain intelligence across government and private sectors.
Law Enforcement Partnership Drives Market Position
TRM Labs carved its niche by supporting global law enforcement agencies in cryptocurrency investigations. The company emerged in 2018 when founders Esteban Castaño and Rahul Raina recognized the need for blockchain intelligence.
Their strategy focused on tracking multiple cryptocurrencies beyond Bitcoin, differentiating them from competitor Chainalysis.
Castaño explained their early thinking: “Then we asked ourselves, ‘What’s the second order consequence? The world would need intelligence to make sense of that data to ultimately manage risk.’”
Jarod Koopman, soon-to-be chief of criminal investigation at the IRS, confirmed the agency’s decade-long reliance on blockchain analytics.
“Without third-party tools, it would be infinitely more time-consuming and inefficient,” Koopman told Fortune. The IRS began using TRM Labs shortly after launch to diversify its analytical tools.
Koopman noted the strategy prevented putting “all of our eggs in one basket,” especially as criminals expanded beyond Bitcoin.
The FBI’s New York field office processes thousands of crypto cases annually, up from just a handful in 2015. Assistant Director James Barnacle highlighted TRM’s role following the October 7 Hamas attacks in Israel.
“The partnership between the FBI and the private sector is critical for us to be successful,” Barnacle stated. He emphasized that there’s nothing the FBI can accomplish entirely on its own in crypto investigations.
The company employs former government investigators, including Chris Janczewski, who led operations against child exploitation sites. This expertise strengthened TRM’s credibility with law enforcement agencies worldwide.
However, close ties with governmental agencies created friction within the crypto community. Many industry participants objected to TRM’s involvement in Hamas wallet tracking reports.
Castaño defended the company’s mission, arguing that “bringing security to digital assets is very much aligned with the crypto industry.”
Private Sector Expansion Signals Future Growth
TRM Labs reports that 40% of its customer base now operates in the private sector. This segment continues expanding as financial institutions explore tokenized assets.
The company’s revenue grew approximately 50% annually over the past four years. Blockchain Capital’s Spencer Bogart described TRM as “one of those things that becomes absolutely table stakes for anybody that’s going to be touching something in the space.”
The firm’s analytics tools serve compliance professionals and financial organizations entering blockchain technology. Wall Street’s embrace of tokenization creates new opportunities for TRM’s intelligence platform.
Ari Redbord, global head of policy, highlighted emerging threats: “We’ve seen a 500% increase in AI-enabled use in scams and fraud. This is a civilization-level threat, and we’re building the company for that moment.”
TRM published reports documenting widespread use of Tether stablecoin on Tron blockchain by cybercriminals. The company later partnered with Tether and Tron to combat illicit activity.
Critics questioned the decision, but Redbord maintained the partnership serves the core mission. “You don’t stop bad actors working only with the most regulatory-compliant places where there’s no illicit activity,” he explained.
Artificial intelligence presents both challenges and opportunities for blockchain analytics. Castaño emphasized the technology’s necessity in modern investigations.
“If you’re operating in a world where there’s trillions of transactions, how in the world do you find the needle in the haystack without using AI?” he questioned. With 350 employees, TRM continues building capabilities to address emerging threats in digital finance.
Key points:
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Bitcoin remains under pressure as the bears attempt to hold the price below the crucial $74,508 level.
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Several major altcoins are struggling to bounce off their support levels, increasing the likelihood of the resumption of the downtrend.
Bitcoin (BTC) (CRYPTO: BTC) is facing renewed selling pressure after bulls pressed for a recovery but failed to sustain gains, with the price slipping beneath the key mark of $72,169. In a Monday note, Galaxy Digital research lead Alex Thorn warned that BTC could slip toward its realized price near $56,000 in the coming weeks, citing a lack of catalysts capable of reversing the trend. The absence of strong on-chain or macro catalysts has kept buyers on the defensive, and the market has yet to demonstrate a convincing bid at higher levels.
Not everyone is certain the bottom is in. On X, Bitwise chief investment officer Matt Hougan argued that the crypto markets are likely to rebound sooner rather than later, signaling that the longer-term setup could still tilt toward a renewed rally even as near-term momentum remains fragile. The disagreement among market voices highlights a broader question: are macro conditions enough to spark a durable relief rally, or will the market continue to test major support zones?
In the near term, a classical pattern is reemerging: BTC’s recovery could take time, with some observers noting a historical tendency for extended periods below the 100-week simple moving average. A noted commentator recently recalled that when BTC breaks below the 100-week SMA, it has stayed under that threshold for many months in prior cycles, with the COVID-19 shock offering a rare exception where BTC rose above the level within weeks. The question for traders remains whether this time will echo the longer baselines or deliver a quicker bounce spurred by renewed risk appetite. The gravity of the current setup is underscored by the fact that several top altcoins are testing notable supports, increasing the risk of a broader downturn if those levels give way.
Looking at the price architecture: BTC’s next crucial defense is at the $74,508 support, but buyers have struggled to hold above that level, and the price has hovered around the $72,000s region. If selling accelerates and BTC breaks decisively below $72,945, the path toward the next meaningful support near $60,000 could open, potentially inviting a broader re-pricing across the leading cryptos. The relative strength index (RSI) sits deep in oversold territory, suggesting that a relief rally could materialize if near-term selling pressure eases and buyers reclaim the vicinity of $79,500. A sustained move above the $79,500 resistance could re-energize momentum toward $84,000, though bulls still face a challenging environment amid ongoing risk-off sentiment in broader markets.
Bitcoin price prediction
Bitcoin’s trajectory hinges on how price behaves around the critical $74,508 support and the subsequent $72,945 region. A breach below those levels would likely intensify selling pressure and could revive a test of the $60,000 zone. Conversely, a rally through $79,500 and then $84,000 would lend credence to a relief rebound, potentially drawing momentum into the broader market. The current configuration remains tricky for bulls, with the macro backdrop and ongoing competition among risk assets keeping upside attempts cautious.
Ether (ETH) entered Tuesday defending a critical level near $2,111, but the bounce remained shallow, signaling a lack of aggressive buying support from bulls. If selling pressure resumes and the price breaks below the $2,111 mark, the ETH/USDT pair could slide toward $1,750. The RSI’s oversold condition hints at a potential short-term relief rally, yet confirmation is needed through a move above the 38.2% Fibonacci retracement at around $2,467 and the 20-day exponential moving average near $2,712. A daily close above the 20-day EMA would be a constructive sign for bulls, indicating a shift in near-term momentum.
BNB (BNB) continues to trade below the $790 level, keeping the risk of a sharper dip intact should bears reclaim momentum. A close below $730 would mark a shift in control, potentially driving the pair toward $700 and then to the $645 area. Bulls, meanwhile, will need to sustain a move above the $790 resistance and push toward the 20-day EMA around $839 to reassert control over the immediate path. The clock is ticking for the buyers, with the market closely watching for a sustained rebound that could anchor a broader recovery in the altcoin complex.
XRP (XRP) has struggled to sustain a break above the $1.61 threshold, a sign that bears are actively selling on relief rallies. A downside break from the descending channel could bring the token back toward the $1.25 region. To preserve a more constructive count, bulls would need to push above the moving averages and, ideally, above the downtrend line to keep the channel intact and hint at a longer-lasting shift in trend.
Solana (SOL) has faced renewed selling pressure after failing to clear the $107 resistance. A close below $95 would likely mark the continuation of the downtrend toward the next major support around $79, with the potential for further weakness if bears dominate the short-term action. A breakout above $107 could reframe the near-term outlook, steering the pair toward the 20-day EMA near $117, where selling pressure may re-emerge as bears attempt to reassert control.
Dogecoin (DOGE) is attempting a relief move, but the bounce has been shallow, implying ongoing pressure from sellers. A relapse below the $0.10 level could drag DOGE down toward $0.08, while a move above the 20-day EMA around $0.12 could open a path toward $0.16 if buyers gain traction. The market’s reaction to the current level will help determine whether DOGE is merely testing a bear wall or laying the groundwork for a more sustained reversal.
Cardano (ADA) is trying to bounce off the descending channel’s support, but the relief rally lacks strength. A turn down from the current level or the 20-day EMA near $0.33 would signal that the bears retain the upper hand and could push ADA toward the next major support around $0.20. Conversely, a decisive move above the 20-day EMA would keep ADA within the channel and could set up a test of the downtrend line, with a potential rally toward the $0.50 area if buyers reclaim control.
Bitcoin Cash (BCH) has mounted a stubborn resistance near the 50% retracement around $535, keeping the path to higher levels contested. If bears push BCH below $497, the downside could accelerate toward $467 and then $443. Conversely, a sustained move above $544 could draw buyers toward the 20-day EMA around $562, with a test of the $604 level possible if momentum shifts decisively in favor of bulls.
Hyperliquid (HYPE) breached the $35.50 resistance on Tuesday, but a long wick on the candlestick suggests selling at higher levels remains a headwind. If buyers partner with the current setup, a break above $35.50 could push HYPE toward $44, hinting that the corrective phase may be ending. However, a swift move below the 20-day EMA near $28.79 could keep the pair oscillating between $35.50 and $20.82 for an extended period.
Monero (XMR) is attempting to establish a footing around the $360 level, but relief rallies remain vulnerable to selling at $412 and the 20-day EMA near $461. A move lower would place the next support near $360, while a sustained push above the 20-day EMA could invite a test toward $500, where selling pressure historically intensifies. After sharp declines, price action tends to consolidate before the next directional move, making near-term forecasts highly contingent on how the price behaves around the moving averages.
Overall, the market landscape remains delicate as traders reassess risk in a period of liquidity constraints and cautious positioning. The key near-term takeaway is that major assets are defending critical levels, but without a clear impulse from buyers, any break below established supports could accelerate the downside and redraw the scope of continued consolidation across the top ranks of the market.
Why it matters
For traders, the confluence of key supports and oversold conditions creates a fragile balance between retracements and renewed downside pressure. The tests of $74,508 and $72,169 for BTC, alongside Ethereum’s $2,111 floor, provide a battleground where micro-entries and risk controls will determine whether a relief rally gains momentum or if selling pressure resumes with renewed force. In this environment, altcoins trading near critical support zones are particularly vulnerable to quick shifts in sentiment, underscoring the importance of disciplined risk management and defined exit strategies.
From a broader market perspective, the situation underscores how macro dynamics and on-chain signals interact with technical thresholds. While some observers expect a rebound as oversold conditions unwind, others warn that the absence of catalysts could keep assets tethered to negative drift until fresh bullish narratives emerge. The tug-of-war between these viewpoints highlights the evolving complexity of crypto markets where liquidity, volatility, and sentiment can swing rapidly in response to both technical patterns and macro cues.
For developers and infrastructure teams building on-chain services, these conditions stress-test risk controls, liquidity provisioning, and the resilience of cross-chain flows. Elevated volatility can impact funding rates, borrow costs, and the timing of protocol upgrades, making robust risk assessment essential for participants across the ecosystem.
What to watch next
- BTC price action around $72,945 and $74,508: a decisive move below or above these levels will set the near-term trajectory.
- ETH at $2,111: a break below could target $1,750; a close above $2,467 and the 20-day EMA near $2,712 would signal bullish re-engagement.
- Relief rally triggers: a sustained move above $79,500 and toward $84,000 would be a meaningful bullish cue for BTC and correlated assets.
- Altcoin next supports: any breach of critical supports for SOL, XRP, ADA, BCH, and XMR could accelerate downside swings or alter the near-term trend.
- Market liquidity and risk tone: keep an eye on macro developments and any shifts in risk sentiment that could influence funding rates and asset correlations.
Sources & verification
- Galaxy Digital note stating BTC could fall to its realized price near $56,000 in coming weeks.
- Bitwise CIO Matt Hougan’s post on X discussing a potential sooner-than-expected market rebound.
- Price levels: BTC below $72,169 and near $74,508 as critical support/resistance points; RSI in oversold territory.
- ETH support at $2,111 and possible targets at $1,750, $2,467, and $2,712 based on chart analysis.
- Channel and moving-average references used to discuss XRP, SOL, DOGE, ADA, BCH, XMR scenarios.
What the story means for readers
The current setup reinforces the importance of monitoring key support zones and momentum indicators in a market that remains sensitive to macro cues and risk appetite. While a relief rally is plausible if price action turns constructive, investors should remain cautious and rely on robust risk controls as the market tests multiple moving averages and defensive levels. For builders and participants in the ecosystem, this environment emphasizes the value of resilient liquidity management and the need to prepare for a range of outcomes, from shallow bounces to deeper corrections, as assets navigate the interplay between chart-based signals and fundamental drivers.
Market context
In a climate where risk assets exhibit episodic volatility, the crypto market continues to move in step with broader liquidity conditions and investor sentiment. Downside pressure at critical levels often precedes cautious bounces, while oversold readings can precede short-lived relief rallies. The balance between technical levels and macro cues will continue to shape price action in the near term, with traders watching for confirmatory moves that could change the current narrative from consolidation to a renewed phase of directional movement.
Why this matters to traders, builders, and investors
For traders, the next few days will test the strength of risk-off sentiment against the potential for a short-covering rally. For builders and users of crypto services, stability around key prices matters for funding rates, liquidity provisioning, and the reliability of on-chain operations during periods of volatility. Investors should differentiate between short-term swings and long-term fundamentals, avoiding over-interpretation of any single move while prioritizing risk controls and diversification in a market that has shown resilience but remains prone to abrupt shifts in direction.
This article was originally published as Bitcoin Dips to 2026 Low as Altcoins Crumble: Is BTC at $56K Next? on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.
Wall Street’s most powerful derivatives exchange is exploring its own crypto-style token, and the implications go far beyond another institutional experiment.
According to reports, CME Group CEO Terry Duffy said the firm is reviewing “initiatives with our own coin” that could operate on a decentralized network. The comment came during a discussion on margin and tokenized collateral, not consumer crypto or payments.
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That distinction matters. If launched, a CME-issued coin would not resemble a typical cryptocurrency or retail stablecoin.
Instead, it could become a core piece of market infrastructure—one that quietly controls how risk moves through global financial markets.
CME Coin is a Collateral play, Not a Crypto Launch
CME’s remarks were tightly framed around collateral and margin, the foundation of derivatives trading. Every futures or options position at CME requires traders to post margin, often in cash or high-quality liquid assets.
By tokenizing that process, CME could allow margin to move on-chain, continuously and in near real time. This would reduce reliance on traditional banking rails, which still operate on limited hours.
Importantly, CME already decides what qualifies as acceptable collateral. A CME-issued token would extend that control into a tokenized environment, without changing who sets the rules.
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Why This Could be Bigger than Most Stablecoins
Stablecoins like USDC or USDT dominate crypto headlines because of their size and usage in trading and payments. But they mainly move money.
A CME coin would move risk.
CME clears trillions of dollars in derivatives exposure across interest rates, equities, commodities, and crypto. Margin instruments used inside that system have far higher velocity and systemic importance than most payment tokens.
If a CME coin became eligible margin, it would sit at the heart of price discovery and financial stability. Stablecoins rarely play that role.
Control over Collateral Means Control over Markets
Collateral is the real choke point in modern finance. It determines who can trade, how much leverage they can take, and how stress propagates during volatility.
By issuing its own tokenized collateral, CME would not be decentralizing markets. It would be reinforcing its position as the trusted intermediary—this time using blockchain rails.
A CME coin would almost certainly be restricted to institutional participants. It would not be designed for trading, speculation, or yield generation.
There would be no open governance, no permissionless access, and no DeFi integration. Blockchain would function as shared infrastructure, not an open financial system.
This mirrors how other Wall Street firms approach tokenization: adopting the technology while preserving existing power structures.
TLDR
- CME Group is exploring the creation of its own cryptocurrency, according to CEO Terry Duffy.
- The company is considering launching a proprietary coin that could operate on a decentralized network.
- CME Group is working on a tokenized cash solution with Google, set to release later this year.
- The potential CME Coin could be used by industry participants, though its specific role remains unclear.
- CME Group plans to expand its crypto futures offerings, including 24/7 trading and new contracts for Cardano, Chainlink, and Stellar.
CME Group, a leading player in global derivatives, is exploring the potential launch of its own cryptocurrency. CEO Terry Duffy confirmed the company is considering the creation of a proprietary token. During the company’s latest earnings call, he revealed that CME Group is evaluating initiatives involving its own coin, which could be launched on a decentralized network.
CME Group’s Exploration of a Proprietary Coin
CME Group’s CEO Terry Duffy disclosed during the recent earnings call that the company is reviewing various tokenization options. He noted that CME Group could potentially introduce a token of its own. This would allow it to create a proprietary coin that could run on decentralized networks. Duffy’s comments suggest that the derivatives exchange is carefully analyzing the role of tokens in its operations, including how they could be used as collateral for margin requirements.
The idea of creating its own coin comes as CME Group has expanded its involvement in the cryptocurrency market. The company is already involved in the launch of tokenized cash, a project in partnership with Google. This solution, set for release later this year, will involve a depository bank to facilitate transactions. However, Duffy’s remarks about the CME Coin suggest that the company could venture further into decentralized finance with its own digital asset.
CME Group’s tokenized cash solution, being developed alongside Google, represents a step forward in digital financial services. However, the CME Coin, which Duffy referred to, could mark a larger leap into the decentralized world. Duffy indicated that the CME Coin would serve as a potential tool for industry participants to use, though he stopped short of defining its exact function. Whether the coin would be a stablecoin, settlement token, or a different type of asset remains unclear, as CME Group has not offered further clarification.
CME Group’s exploration of tokenized assets comes as the company continues to expand its crypto futures offerings. The company has seen significant growth in cryptocurrency trading, with average daily volumes hitting $12 billion last year. As part of its strategy, CME Group is set to launch 24/7 trading for crypto futures in the second quarter. It is also adding new cryptocurrency futures contracts for assets like Cardano, Chainlink, and Stellar.
Wall Street’s Growing Interest in Tokenization
CME Group’s potential move to create a proprietary cryptocurrency would place it among the growing number of Wall Street giants exploring tokenized assets. JPMorgan recently introduced JPM Coin, a token used for tokenized deposits on Coinbase’s layer-2 blockchain Base. This move, like CME Group’s exploration of its own coin, is reshaping how traditional financial institutions interact with digital currencies.
Despite the growing interest in tokenization, CME Group has not yet provided details on the timeline or specific goals for its coin. The company’s focus on exploring a proprietary digital asset demonstrates its increasing commitment to cryptocurrency and blockchain technology.
The stablecoin protocol ended its “Frontier” rewards phase with a dollar-denominated token airdrop.
Bitcoin’s (BTC) struggle to hold above $70,000 carried on into Wednesday, raising concerns that the a drop into the $60,000 range could be the next stop. The sell-off was accompanied by futures market liquidations, a $55 billion drop in BTC open interest (OI) over the past 30 days, and rising Bitcoin inflows to exchanges.
The price weakness has analysts debating whether crypto-specific factors or larger macro-economic issues are the driving factor behind the sell-off and what it may mean for BTC’s short-term future.
Key takeaways:
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Around 744,000 BTC in open interest exited major exchanges in 30 days, equal to roughly $55 billion at current prices.
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BTC futures cumulative volume delta (CVD) fell by $40 billion over the past 6-months.
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Crypto exchange reserves have risen by 34,000 BTC since mid-January, increasing the near-term supply risk.
BTC open interest collapse points to large-scale deleveraging
CryptoQuant data noted that Bitcoin’s 30-day open interest change shows a sharp contraction across exchanges, reflecting widespread position closures, not just freshly opened short positions.
On Binance, the net open interest fell by 276,869 BTC over the past month. Bybit recorded the largest decline at 330,828 BTC, while OKX saw a reduction of 136,732 BTC on Tuesday.
In total, roughly 744,000 BTC worth of open positions were closed, equivalent to more than $55 billion at current prices. This drop in open positions coincided with Bitcoin’s drop below $75,000, indicating deleveraging as a driving factor, not just spot selling.
Onchain analyst Boris highlighted that the cumulative volume delta (CVD) data shows market sell orders continue to dominate, particularly on Binance, where derivatives CVD sits near -$38 billion over the past six months.
Other exchanges show varying dynamics: Bybit’s CVD flattened near $100 million after a sharp December liquidation wave, while HTX stabilized at -$200 million in CVD as the price consolidates near $74,000.
Related: Bitcoin bounces to $76K, but onchain and technical data signal deeper downside
Increased exchange flows add pressure as analysts watch key levels
Meanwhile, Bitcoin inflows to exchanges surged in January, totaling roughly 756,000 BTC, led by Binance and Coinbase. Since early February, inflows have exceeded 137,000 BTC, underscoring traders’ repositioning and not necessarily leaving the market.
On the supply side, analyst Axel Adler Jr. noted that exchange reserves have risen from 2.718 million BTC to 2.752 million BTC since Jan. 19. The analyst warned that continued growth above 2.76 million BTC could increase selling pressure. The analyst believed that a complete capitulation is yet to take place, which may happen at lower price levels.
Market analyst Scient said Bitcoin is unlikely to form a bottom in a single day or week. Durable market bottoms may develop through two to three months of consolidation near the major support zones, with higher time frame indicators. Scient noted that whether this structure forms in the high $60,000 range or the low $50,000 level remains unclear.
Bitcoin Trader Mark Cullen continues to see potential downside toward $50,000 in a broader macro scenario, but expects a short-term reversion toward the local point of control ($89,000 to $86,000) after BTC swept weekly lows below $74,000 on Tuesday.
Related: Bitcoin’s $68K trend line seen as potential BTC price floor: Traders
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.
The digital asset treasury (DAT) movement is drowning, with nearly every DAT underwater.
The Tuesday purchases followed a heavier round of acquisitions on Monday, during which Ark Invest loaded up on crypto-related shares worth more than $71 million.
The broader digital asset market is in a bearish state, but some experts are leveraging the dip to expand their crypto exposure. Cathie Wood’s investment management company, Ark Invest, is one of them, having scooped up thousands of shares linked to crypto firms over the last few trading days.
According to the latest trade filing from Ark Invest, the firm spent over $19 million to purchase additional crypto-related stocks through its exchange-traded funds (ETFs) on February 3. The acquired shares are tied to multiple companies, including the stablecoin issuer Circle, crypto exchanges Coinbase and Bullish, and Ethereum treasury firm Bitmine.
Ark Invest Buys Crypto Stocks
On Tuesday, Ark Invest bought 145,488 Bitmine shares for $3.25 million and 125,218 Bullish shares for $3.46 million. In addition, the company purchased 42,878 Circle shares for $2.4 million and 3,510 Coinbase shares for $630,606. Notably, Ark Invest also tapped into the Bitcoin-focused tech entity Block Inc. and financial services firm Robinhood, buying shares totaling 31,202 and 89,677 for $1.77 million and $7.8 million, respectively.
The Tuesday purchases followed a heavier round of acquisitions on Monday. Ark Invest had scooped up crypto-related shares worth more than $71 million.
Similarly, the Monday buys included shares of Coinbase, Circle, Bitmine, Robinhood, Bullish, and Block Inc. The firm made these purchases through several ETFs, including ARK Blockchain & Fintech Innovation ETF (ARKF) and ARK Innovation ETF (ARKK).
Market Crashes as BTC Declines
Ever since bitcoin (BTC) began its descent late last year, crypto stocks have followed suit. Data from Trading View shows that the stocks of most crypto-related companies are down by double digits over the last three months. Their decline has intensified as BTC remains below $90,000 and faces the risk of plummeting under $60,000. At the time of writing, the leading digital asset was changing hands at $76,000, down 17% monthly and 14% weekly.
While BTC and the broader market continue to decline, Ark Invest has been on a buying spree. The asset manager has spent millions of dollars on crypto-related stocks in December and January. From the look of things, the company is likely to continue buying crypto stocks for as long as the bearish season lasts.
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TLDR
- Fidelity Digital Assets has officially launched the FIDD stablecoin with an initial supply of over 59 million dollars.
- The FIDD stablecoin is now live on the Ethereum blockchain and is available for on-chain payments and institutional settlements.
- Fidelity confirmed that FIDD is fully backed by US dollars held in accredited banks and complies with the GENIUS Act.
- Mike O’Reilly stated that Fidelity is committed to stablecoin development and has researched the digital asset space for years.
- The FIDD token will be available through Fidelity Digital Assets, Fidelity Crypto, and other institutional platforms.
Fidelity Digital Assets has officially launched its native stablecoin FIDD on the Ethereum blockchain, following a recent announcement. The asset began with an initial issuance of over $59 million and is now live for transactions. The token is fully backed by US dollars held in accredited financial institutions.
FIDD Stablecoin Launches with Initial Supply and Ethereum Integration
Fidelity introduced the FIDD stablecoin as part of its broader expansion into the blockchain and digital payments market. The company minted the token on Ethereum, aligning with the industry’s move toward on-chain settlement. The initial supply exceeds $59 million but remains largely limited in wallet distribution.
Mike O’Reilly, President of Fidelity Digital Assets, emphasized the company’s dedication to digital innovation. “We have spent years researching and advocating for the benefits of stablecoins,” he said. The token aims to serve as both a payment method and a settlement tool for institutional clients.
The FIDD stablecoin complies with the regulatory framework set by the GENIUS Act, allowing for secure and compliant issuance. It is backed by US dollar reserves stored in regulated banks. The GENIUS Act also permits backing by US Treasury bills, enhancing issuer control over earnings.
Utility, Custody, and Institutional Access
Fidelity has confirmed that FIDD will be available across its platforms, including Fidelity Crypto and Fidelity Crypto for Wealth Managers. Purchase and redemption will be handled internally, while external trading will occur through major cryptocurrency exchanges. The asset is fully transferable within Ethereum-based wallets.
The company will also offer custodian services for holding FIDD and managing associated reserves. This includes both direct and institutional client servicing. As Fidelity already operates digital asset custody, it expands its offerings by adding a compliant stablecoin.
FIDD is designed for on-chain payments and institutional use cases, especially for settlement across digital asset platforms. Its compatibility with Ethereum ensures wide infrastructure support. Despite the launch, liquidity and adoption are expected to build gradually.
Stablecoin Ecosystem Sees New Entrants with FIDD in Focus
The FIDD stablecoin enters a market dominated by USDT and USDC, both of which have seen growth over the past year. New regulations like the GENIUS Act have encouraged more issuers to develop compliant tokens. FIDD is Fidelity’s answer to the emerging demand for tokenized dollars with regulatory clarity.
Fidelity joins the list of fintechs and banks offering branded stablecoins, focusing on secure reserves and usage controls. However, like many new stablecoins, FIDD must still prove its real-world utility and demand. Several newly launched stablecoins have remained underutilized due to limited liquidity or application.
The Fidelity Digital Interest Token, launched in September 2025, demonstrates the firm’s ongoing blockchain efforts. That token reached over $264 million in total value before dropping due to redemptions. Its current assets under management stand at approximately $161 million.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
KT DeFi launches regulated cloud mining, offering low-entry, transparent access to BTC, XRP, ETH, SOL, and DOGE.
Summary
- Global crypto mining shifts to renewable energy as KT DeFi offers sustainable, low-cost cloud mining access.
- KT DeFi supports BTC, XRP, DOGE, SOL, and ETH, enabling steady mining returns without active trading.
- As miners adopt solar and wind power, KT DeFi positions cloud mining as a stable, eco-friendly income option.
In today’s rapidly evolving crypto landscape, a quiet but powerful transformation is taking place — one driven by energy efficiency and sustainability.
Across the globe, large-scale mining operations are moving away from traditional high-energy mining models and adopting renewable energy sources such as solar and wind power. This shift not only significantly reduces operating costs, but also improves long-term stability while aligning mining profitability with environmental responsibility.
For investors, this represents more than an environmental upgrade; it marks a smarter and more sustainable way to participate in crypto mining.
Why cloud mining is gaining momentum
As market volatility increases and mining technology becomes more complex, many investors are reconsidering how they participate in crypto mining.
Instead of purchasing hardware, managing electricity costs, and handling technical maintenance, more users are turning to cloud mining — a simpler and more efficient alternative.
With cloud mining:
- Hardware deployment and maintenance are handled by professional teams
- Energy management and system optimization are centralized
- Users simply select a mining contract
- Mining rewards are calculated and distributed daily
- No technical knowledge or active trading is required
This makes cloud mining an ideal entry point for beginners and a time-efficient solution for long-term investors.
KT DeFi: A beginner-friendly and transparent cloud mining platform
KT DeFi is a regulated cloud mining platform designed to make crypto mining accessible, transparent, and sustainable.
The platform supports multiple major cryptocurrencies, including BTC, XRP, DOGE, SOL, ETH, and more. With a clear interface and straightforward contract structure, users can participate in mining with a low entry threshold and predictable returns.
For investors who prefer steady income over short-term speculation, KT DeFi offers a clear alternative:
No market timing, no frequent trading — just consistent, automated mining rewards.
Why choose KT DeFi
- Beginner-friendly design – Simple setup, intuitive interface, no technical background required
- Global mining infrastructure – Hundreds of mining facilities and over one million devices worldwide
- 100% renewable energy mining – Powered by solar and wind energy for long-term sustainability
- Stable passive income model – Mining runs automatically once a contract is activated
- Strong security standards – Multi-layer protection and transparent platform operations
This model has attracted over 9 million users globally, reflecting strong trust and long-term adoption.
Key platform benefits
- $17 instant signup bonus for new users
- No hidden service or management fees
- Multi-currency settlement: XRP, SOL, DOGE, BTC, LTC, ETH, USDC, USDT, BCH
- Affiliate program with referral rewards of up to $50,000
- Protected by McAfee® Security and Cloudflare®
- 100% uptime guarantee
- 24/7 live customer and technical support
How to start mining with KT DeFi
Step 1: Create an account
Register using an email address and gain immediate access to cloud mining services. New users can start mining Bitcoin and other cryptocurrencies right away.
Step 2: Choose a mining contract
| Contract Name | Asset Type | Investment (USD) | Duration | Expected Return (Principal + Profit) |
| BTC Welcome Plan | BTC | $100 | 2 Days | $108 |
| Goldshell Mini DOGE Pro | DOGE / LTC | $500 | 6 Days | $539.6 |
| Bitmain Antminer L7 | DOGE / LTC | $5,000 | 20 Days | $6,500 |
| Antminer S19k Pro | BTC | $10,000 | 30 Days | $14,830 |
| ANTSPACE HK3 | BTC / BCH | $50,000 | 35 Days | $80,625 |
Mining rewards begin the day after contract activation
Once total earnings reach $100, users may withdraw or reinvest
About KT DeFi
Founded in 2019, KT DeFi is a UK-registered and licensed cloud mining platform dedicated to making cryptocurrency mining more accessible, efficient, and sustainable.
By leveraging advanced mining hardware, intelligent hash rate allocation, and renewable energy infrastructure, KT DeFi lowers the barriers to entry for crypto mining, allowing users of all experience levels to participate with confidence.
KT DeFi believes that long-term value comes from stability, transparency, and sustainable returns, not short-term speculation. Through continuous system optimization and strict security standards, the platform aims to help users achieve steady asset growth in a reliable environment.
For investors seeking consistent passive income in the crypto space, KT DeFi is built to be a trusted long-term partner.
For more information, visit the official website, or download the mobile app.
Email: [email protected]
Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.
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