Introduction A widening fault line is forming in the digital asset space: products that increasingly resemble regulated financial institutions sit alongside a traditionalIntroduction A widening fault line is forming in the digital asset space: products that increasingly resemble regulated financial institutions sit alongside a traditional

Banks, Stablecoins and ETFs Clash in Crypto’s Next Phase

Banks, Stablecoins And Etfs Clash In Crypto's Next Phase

Introduction
A widening fault line is forming in the digital asset space: products that increasingly resemble regulated financial institutions sit alongside a traditional banking sector warning that some innovations may be overreaching. The week’s developments illustrate the tension, as JPMorgan cautions about yield-bearing stablecoins creating a parallel banking function without the safeguards built through decades of regulation, while Morgan Stanley signals deeper institutional access through ETF filings that could spur rivals to accelerate their own crypto strategies.

Key Takeaways

  • Yield-bearing stablecoins are drawing regulatory and safety concerns from traditional banks.
  • Institutional adoption appears to be accelerating, with major banks filing ETF plans tied to crypto assets.
  • Crypto-native firms are pushing into regulated rails, including on-chain stock lending and broader lending platforms.
  • The industry is navigating a growing regulatory environment as finance and crypto converge.

Tickers mentioned: $BTC, $SOL, $ETH, $USDC, $USDT

Sentiment: Neutral

Price impact: Neutral. The story centers on regulatory and adoption dynamics rather than immediate price moves.

Trading idea (Not Financial Advice): Hold. Market participants should monitor regulatory signals and bank-led adoption trends before making larger bets.

Market context: The narrative tracks a shift from pure crypto trading to institutional-grade infrastructure, underscored by regulatory scrutiny and large-bank participation.

Yield-bearing stablecoins pose serious risks, JPMorgan warns

JPMorgan Chase has embraced blockchain technology and stability coins, but the CFO warns that yield-bearing versions could pose significant risks to the financial system. Speaking on the fourth-quarter earnings call, Jeremy Barnum cautioned that interest-bearing stablecoins could replicate core banking functions without the accompanying prudential safeguards developed over centuries of regulation. The concern reflects a broader banking stance toward yield-bearing structures amid ongoing congressional scrutiny of digital assets.

Despite four-year cycle debates, crypto enters next phase of institutional adoption

While debate continues over the four-year market cycle, industry observers note a structural pivot toward institutional participation. Binance Research describes a shift being led, perhaps unexpectedly, by Morgan Stanley, with recent S-1 filings tied to Bitcoin and Solana ETFs signaling a new phase of mainstream access. The move could accelerate the pace at which other banks—Goldman Sachs, JPMorgan among them—develop their own crypto strategies to stay competitive as institutional involvement expands.

Trump-linked World Liberty Financial targets crypto lending markets

World Liberty Financial is expanding into crypto lending, deploying its USD1 stablecoin on a new lending and borrowing platform called World Liberty Markets. The platform allows collateral in Ether, a tokenized version of Bitcoin, and stablecoins USDC and USDT, with loans denominated in USD1. The company says additional collateral types, including tokenized real-world assets, will be added as the platform grows. The rollout follows World Liberty’s application for a national trust bank charter, aimed at broadening USD1 adoption in cross-border payments and treasury operations.

World Liberty Financial’s stablecoin USD1 has a market capitalization of around $3.4 billion. Source: CoinMarketCap

Figure Technology targets tokenized stock lending

Figure Technology Solutions has launched a system for stock lending that enables investors to lend shares directly to one another on-chain, bypassing traditional intermediaries. The On-Chain Public Equity Network (OPEN) lets companies issue real equity via Figure’s Provenance blockchain; on OPEN, equity represents actual ownership rather than synthetic exposure. Figure’s CEO Mike Cagney notes that shares can be lent or pledged directly on-chain without custodians, with several companies already expressing interest in issuing on OPEN, including digital asset treasury firms.

Shares of Figure Technology Solutions (FIGR) have risen sharply since the company’s September initial public offering, giving it a market capitalization of about $12 billion. Source: Yahoo Finance

This article was originally published as Banks, Stablecoins and ETFs Clash in Crypto’s Next Phase on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Market Opportunity
Clash Logo
Clash Price(CLASH)
$0.040181
$0.040181$0.040181
-0.51%
USD
Clash (CLASH) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Michael Saylor: Plans to convert convertible bonds into equity within 3-6 years

Michael Saylor: Plans to convert convertible bonds into equity within 3-6 years

PANews reported on February 16th that Strategy stated that even if the price of Bitcoin falls to $8,000, Strategy can ensure it has enough assets to fully repay
Share
PANews2026/02/16 08:35
South Korea Trade Balance declined to $0B in January from previous $8.74B

South Korea Trade Balance declined to $0B in January from previous $8.74B

The post South Korea Trade Balance declined to $0B in January from previous $8.74B appeared on BitcoinEthereumNews.com. Information on these pages contains forward
Share
BitcoinEthereumNews2026/02/16 08:21
GBP trades firmly against US Dollar

GBP trades firmly against US Dollar

The post GBP trades firmly against US Dollar appeared on BitcoinEthereumNews.com. Pound Sterling trades firmly against US Dollar ahead of Fed’s policy outcome The Pound Sterling (GBP) clings to Tuesday’s gains near 1.3640 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair holds onto gains as the US Dollar remains on the back foot amid firm expectations that the Federal Reserve (Fed) will cut interest rates in the monetary policy announcement at 18:00 GMT. At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, holds onto losses near a fresh two-month low of 96.60 posted on Tuesday. Read more… UK inflation unchanged at 3.8%, Pound shrugs The British pound is unchanged on Wednesday, trading at 1.3645 in the European session. Today’s inflation report was a dour reminder that UK inflation remains entrenched. CPI for August was unchanged at 3.8% y/y, matching the consensus and its highest level since January 2024. Airfares decreased but this was offset by food and petrol prices. Monthly, CPI rose 0.3%, up from 0.1% in July and matching the consensus. Core CPI, which excludes volatile items such as food and energy, eased to 3.6% from 3.8%. Monthly, core CPI ticked up to 0.3% from 0.2%. The inflation report comes just a day before the Bank of England announces its rate decision. Inflation is almost double the BoE’s target of 2% and today’s release likely means that the BoE will not reduce rates before 2026. Read more… Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-trades-firmly-against-us-dollar-ahead-of-feds-policy-outcome-202509171209
Share
BitcoinEthereumNews2025/09/18 01:50