Stablecoins Hit $160B as Traditional Finance Moves On-Chain

Another week, another seismic shift in the machinery of global finance—and Bitcoin's $2,000 daily swings have become the new normal as 2026 draws closer.

While inflation cools to 2.7% and whispers of a crypto-friendly SEC embolden institutional forecasts, we're witnessing something far more consequential than your typical bull run theatrics. This isn't about memes or moonshots—it's about JPMorgan's $100 million tokenized money market fund, the DTCC entering digital custody, and stablecoins climbing from $7.5 billion to $20 billion in supply as they evolve from opaque intermediaries into the settlement layer of global finance. From Solana's DePIN projects securing $70 million in venture capital to AI agents autonomously managing portfolios on decentralized compute networks, the convergence of traditional finance and on-chain protocols is rewriting the rules faster than most investors can adapt.

In today's issue, we'll decode why crypto's maturation into invisible infrastructure matters more than any price prediction, explore how tokenized real-world assets are recasting the DNA of finance, and reveal how the world's smartest money is positioning for a future where blockchain quietly recedes into daily life—much like cloud computing—while the architectural battle between centralized hyperscalers and decentralized protocols scripts its own playbook.

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Crypto markets are learning to price optimism with skepticism as 2026 draws closer.

As inflation cools—2.7% CPI versus last year’s 3%—BTC’s $BTC ( ▼ 0.0% ) price action illustrates the mood: swings of $2,000 become routine in response to the data, even as the market digests its reliability. “Given the lack of explanation about how the BLS made these decisions, it’s hard to take that at face value,” says Legendary, a content lead who has turned market sentiment itself into a daily observable.

Yet behind the volatility, funding in real-world assets points to deepening sector confidence. Solana $SOL ( ▲ 3.31% ) DePIN Fuse Energy’s $70 million Series B isn’t merely a capital raise—it signals a bet on blended infrastructure, with token incentives driving savings in places the average investor never sees. The structure of these projects, however, isn’t universally trusted. “Most investors are very skeptical of deep end because none of them have proven to have good tokenomics,” notes Brad of FrontierNET—a timely reminder that faith in tomorrow’s rails runs up against questions over sustainable economics.

Meanwhile, whispers of a more crypto-friendly SEC and a potential Fed tilt have lifted ETH $ETH ( ▼ 0.97% ) sentiment and emboldened forecasts for compliance solutions and institutional onramps in the coming cycle. Overlay this with a maturing investor class focused less on branding than on invisible architecture—“Crypto could one day recede quietly into daily life, much like cloud computing,” suggests Figment’s Dougie DeLuca—and the road ahead appears at once more sophisticated and less speculative.

Tokenized real-world assets are quietly recasting the DNA of finance—where mortgage pools and money market funds are poised to become as easy to trade as stablecoins.

The institutional surge is palpable: JP Morgan’s $100 million tokenized money market fund and the DTCC’s entry into digital custody signal that tokenization is no longer just a crypto-native curiosity, but a global capital markets ambition.

Mike Cagney, Figure’s $FIGR_HELOC ( ▲ 0.01% ) chief, doesn’t sugarcoat the transition: “The reality is, you know, when you start off right now, it's a liability.” For now, he admits, the path is papered with inefficiencies and regulatory tangles. But with Figure’s Provenance blockchain climbing to the #11 spot by market cap, the sector’s momentum is undeniable. Steve Ehrlich of Unchained underscores this: projects like Figure’s demonstrate “practical applications of blockchain that can succeed where many others have not.”

Divergent perspectives abound. Institutional gravitas is hunting alpha—and efficiency—yet some, like Scott Melker, ask whether Wall Street is absorbing crypto’s promise or subsuming it: “Are we eating the world, or is Wall Street actually dominating us and eating our asset class?” The answer may shape the future of this asset class, hovering between disruption and integration.

With $60–750 billion in stablecoins projected by 2026 and adoption curves steepening, tokenized asset rails could redraw the lines between legacy finance and on-chain liquidity.

If the next phase of global capital formation happens on a blockchain ledger, the question is no longer if RWA integration will come—but who gets to architect its rules.

Stablecoins are no longer the crypto market’s backstage liquidity engine—they are becoming the settlement layer bridging Wall Street and DeFi.

With supply climbing from $7.5 billion to $20 billion in barely a year, the ascent is not merely a byproduct of bull market fervor. As Piotr of StableWatch notes, “We had only two players focused on yield-bearing stablecoins. Now it’s booming.” Investors are buying into the promise of $100 billion in stablecoin supply by 2026—not through the usual synthetic magic, but through real-world asset backing and on-chain yield.

Yet this transformation is hardly uniform. Halko, StableWatch’s co-host, points to transparency and efficiency as the twin challenges. “If we discover any new source and manage to mine this source of alpha, it’s up to the ecosystem to let it grow.” The market’s maturation will be measured as much by risk disclosures and on-chain audits as by yield curves.

Forward-looking firms like Figure Technology Solutions see regulatory momentum turning the tide. CEO Mike Cagney is convinced: “You’re going to see JP Chase versus the rest of the world… they are moving into blockchain and doing more innovative work than many traditional crypto entities.” The looming migration of capital from bank deposits to on-chain stablecoins signals an industry preparing for prime time.

Stablecoins are evolving from opaque intermediaries to keystones of a global, programmable financial order—where trust is measured in transparency, and value is never off-chain for long.

AI is not just making inroads into crypto—it’s rewriting the protocols of digital asset management, one autonomous agent at a time.

The numbers set the agenda: Tens of billions in projected AI revenues and a predicted trillions in CapEx for compute infrastructure put resource allocation firmly at the centre of the investor’s chessboard. Meanwhile, the 94% GPU utilization rate on Targon’s subnet hints at burgeoning demand for decentralized AI computing, moving the frontier beyond Silicon Valley hyperscalers.

For funds dabbling in this intersection, the defensive play is security—AI-driven threat detection and on-chain execution are narrowing the reaction gap from days to seconds. Pei Chen of Theoriq insists that “the power of the agents, how do you make them autonomous but also within control?” It’s a recurring dilemma: the drive for autonomy versus the imperative for robust oversight.

Yet, not all consensus. Joey Krug of Founders Fund raises an eyebrow at decentralization utopias, noting, “AI stuff that actually has really sizable traction is centralized.” On the other end, Sami of Unsupervised Capital counters, “Crypto AI enables open competition, and that by itself will just bring faster innovation,” pointing to emergent projects like BitTensor and the open-source burst they represent.

Capital intensity will favor the scale players, but the architectural battle—centralized hyperscalers versus decentralized AI protocols—is just beginning to script its own playbook.

For allocators eyeing the next paradigm, the question is not whether AI and crypto will converge—but whether their union will fragment or reinvent the power structures of digital markets.

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Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered investment advice. Cryptocurrency investments are speculative and involve significant risk. Please conduct your own research and consult with a financial professional before making any investment decisions.