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Crypto Treasury Buying Is Absorbing Bitcoin Faster Than It’s Being Mined

Bitcoin’s supply dynamics are entering a new phase, and this time, corporations are at the center of it. Over the past six months, corporate crypto treasuries have accumulated Bitcoin at a pace that dramatically exceeds new issuance, creating a growing imbalance between demand and freshly mined supply. The numbers reveal a powerful shift in how Bitcoin is being adopted, not by retail traders chasing short-term gains, but by institutions locking BTC onto balance sheets for the long term.

Impersonation Scams Explode in 2025, Signaling a Dangerous Shift in Crypto Crime

The cryptocurrency industry faced a disturbing escalation in fraud during 2025, as impersonation scams surged at an unprecedented pace. According to blockchain intelligence firm Chainalysis, reported cases of impersonation-based crypto scams jumped by nearly 1,400% year over year, marking one of the most alarming security trends the industry has ever seen.

This dramatic rise highlights how fraudsters are evolving faster than many users’ defenses, exploiting trust, urgency, and increasingly sophisticated technology to drain victims’ wallets.

How Impersonation Became the Weapon of Choice

Impersonation scams revolve around deception at its core. Criminals pose as trusted entities such as crypto exchanges, customer support agents, well-known companies, or even government bodies. By mimicking legitimate communication styles, branding, and tone, scammers convince victims to hand over sensitive information, private keys, or direct access to their funds.

Chainalysis noted that these scams are rarely standalone operations. Instead, impersonation tactics are often woven into broader fraud schemes, including fake investment opportunities and so-called  pig butchering  scams. Victims may be groomed over time, slowly gaining confidence in the scammer before being persuaded to make a catastrophic financial decision.

Bigger Losses, Fewer Warnings

Beyond the spike in the number of incidents, the financial damage caused by impersonation scams has intensified. Chainalysis revealed that the average amount stolen per impersonation scam increased by more than 600%, a trend the firm described as deeply concerning.

One of the most high-profile cases in 2025 involved scammers pretending to represent the crypto exchange Coinbase. By exploiting the platform’s reputation, fraudsters were able to steal close to $16 million from unsuspecting users. The case eventually led to criminal charges in Brooklyn, although legal proceedings are still ongoing.

These incidents underscore a harsh reality: as scams become more believable, victims often realize something is wrong only after their assets are gone.

AI and the Industrialization of Crypto Fraud

Artificial intelligence has emerged as a powerful accelerant for modern crypto scams. Chainalysis described this shift as the  industrialization of fraud,  where scammers rely on advanced tools, automation, and AI-driven messaging systems to scale their operations.

Data from the report showed that scams incorporating AI were 4.5 times more profitable than traditional schemes. These operations generated higher daily revenues, processed more transactions, and reached more victims simultaneously. AI-generated messages, voice cloning, and realistic fake support chats have made scams harder to distinguish from legitimate communications.

The growing volume of AI-assisted fraud suggests that scams are not only becoming more efficient but also more psychologically persuasive, blurring the line between real and fake interactions.

Why Law Enforcement Alone Isn’t Enough

Deus X Ceo Tim Grant: Integrating Finance, Not Replacing It

A Different Kind of Crypto Leader

In an industry often dominated by bold promises to overthrow traditional finance, Tim Grant stands apart. As CEO of Deus X Capital, Grant is not interested in disruption for the sake of disruption. His vision is more pragmatic, more grounded, and ultimately more ambitious: to merge the efficiency of blockchain technology with the stability and scale of global financial markets. As digital assets continue to mature, Grant’s approach reflects a broader shift in the industry—from experimentation to execution, from speculation to infrastructure.

From Traditional Finance to Digital Assets

Tim Grant’s journey into crypto did not begin with Bitcoin maximalism or ideological opposition to banks. In fact, when he first encountered the digital asset space in 2015, he had no technical background in blockchain at all. What changed everything was a series of early meetings in San Francisco with executive teams at Ripple and Coinbase. Those conversations revealed something deeper than price charts and tokens: a new financial toolkit capable of fixing long-standing inefficiencies in global markets.

Grant quickly recognized blockchain’s potential to improve settlement speeds, reduce operational costs, and increase transparency across financial systems. Crucially, he did not see these benefits as a replacement for traditional finance, but as a natural extension of it. By the end of 2015, he had fully committed to the digital asset space, a decision that would define the next chapter of his career.

The Birth of Deus X Capital

Deus X Capital emerged as a unique hybrid between an investment firm and an operating company. Backed by a family office and launched with approximately one billion dollars in assets, the firm was designed to go beyond passive investing. With a global footprint spanning London, Malta, and the United Arab Emirates, Deus X operates at the intersection of capital markets, fintech, and digital assets.

Rather than chasing trends, the firm focuses on building long-term financial infrastructure. Its mandate is clear: unlock value across regulated digital finance while contributing to a fairer and more accessible financial system. This dual identity—as both investor and operator—has become the cornerstone of its strategy.

An Infrastructure-Led Growth Strategy

At the heart of Deus X’s philosophy is a deliberately hands-on, infrastructure-first approach. Grant believes that true value creation in digital finance comes from owning and operating the rails, not just funding companies that use them. By combining capital deployment with direct operational involvement, Deus X aims to achieve stronger execution and more resilient, risk-adjusted returns.

This strategy spans multiple layers of the digital finance stack. From payments and treasury solutions to prime services, market infrastructure, execution tools, and institutional decentralized finance, Deus X positions itself wherever regulated digital finance meets real-world demand. The result is an ecosystem where investments are not isolated bets, but interconnected components of a larger financial machine.

Building an Interconnected Venture Ecosystem

Deus X’s growing portfolio reflects this ecosystem-driven mindset. Businesses such as Deus X Pay, Cor Prime, and Solstice are designed to solve specific market challenges while sharing underlying infrastructure and strategic direction. Rather than competing internally, these ventures reinforce one another, allowing growth to compound organically.

This model enables Deus X to move faster than traditional investment firms while maintaining regulatory discipline. Each venture benefits from shared expertise, technology, and capital, creating efficiencies that would be difficult to achieve in a fragmented portfolio.

Why Regulation and Institutions Matter

For Grant, the future of digital assets depends on meaningful engagement with institutions and regulators. He is outspoken about the need to move beyond hype and focus on production-ready systems that can operate within existing legal frameworks. Payments, treasury management, tokenization, prime brokerage, and institutional DeFi are not theoretical concepts in his world—they are active areas of deployment.

This emphasis on regulation does not limit innovation; instead, it enables scale. By building compliant infrastructure from the ground up, Deus X positions itself as a bridge between traditional finance and the next generation of digital financial services.

Consensus Hong Kong: Substance Over Spectacle

Grant’s upcoming appearance at Consensus Hong Kong reflects his broader philosophy. He has made it clear that he is not interested in buzzwords or surface-level conversations. His focus is on what he calls  real talk only —honest discussions about what is working, what is not, and what it will take to bring digital finance into full-scale production.

With exposure across investing, venture building, and direct operations, Grant brings a rare, holistic perspective to the stage. His message is aimed at builders, regulators, and institutional players who are serious about deploying digital finance in the real world.

The Long-Term Vision for Digital Finance

Tim Grant’s vision for Deus X is ultimately about integration. He does not believe the future lies in tearing down existing financial systems, but in upgrading them. Blockchain, in his view, is not an enemy of traditional finance—it is a powerful enhancement.

As the digital asset industry matures, voices like Grant’s are becoming increasingly influential. By prioritizing infrastructure, regulation, and collaboration, Deus X represents a model of how crypto can evolve from a disruptive force into a foundational layer of global finance. In a space often driven by noise, Grant’s message is clear, measured, and increasingly hard to ignore.

US Homebuilder Clears Regulatory Hurdle to Launch Crypto-Based Rent Rewards

A major shift is taking shape at the intersection of real estate and digital assets as US homebuilder Megatel Homes prepares to roll out a crypto-powered rewards system for renters and homeowners. The initiative follows a rare and significant regulatory milestone: a  no-action  letter from the US Securities and Exchange Commission, signaling that the regulator does not intend to take enforcement action as long as the project operates within its disclosed framework.

The approval opens the door for Megatel’s new platform, MegPrime, to officially enter the market with a model that blends housing payments, digital tokens, and consumer rewards in a way the company believes could reshape how Americans interact with rent and homeownership.

What Is MegPrime and How Does It Work?

MegPrime is designed as a rewards ecosystem built around a proprietary digital asset known as the MP Token. Under the program, renters who choose to pay their rent using the token can earn crypto rewards in return. These rewards are positioned not as speculative investments, but as utility-based incentives that can be spent on everyday purchases or converted into US dollars.

According to the company, the platform was developed quietly over an extended period to ensure it met regulatory expectations before going public. That behind-the-scenes preparation appears to have paid off, as the SEC’s no-action letter gives Megatel confidence to proceed without the looming threat of enforcement, provided the project remains within its stated boundaries.

A Bold Pitch to Renters in a Difficult Housing Market

Megatel and MegPrime executives are framing the platform as a response to mounting pressure on renters across the United States. With interest rates elevated and home prices still stretched beyond the reach of many households, the company argues that traditional housing pathways are no longer sufficient.

Aaron Ipour, co-founder of both Megatel Homes and MegPrime, described the platform as a financial bridge for renters, homeowners, and aspiring buyers who feel locked out of the market. The message is clear: instead of rent being a sunk cost, MegPrime aims to turn monthly payments into a stepping stone toward future ownership.

One of the platform’s most eye-catching claims is that eligible renters could potentially receive the equivalent of up to 12 months of past rent as credit toward a future home purchase, capped at $25,000. While details and conditions apply, the promise alone sets MegPrime apart from conventional rewards programs.

Crypto Rewards Meet Real Estate Reality

Crypto-based cashback is not entirely new. Credit card companies have offered digital asset rewards for years, and various fintech platforms have experimented with tokenized incentives. What makes MegPrime different is its direct integration into housing payments, one of the largest and most consistent expenses for American households.

Recent data suggests that roughly one-third of people in the United States live in rental housing, making rent a powerful entry point for financial innovation. By tying rewards to rent rather than discretionary spending, MegPrime is betting that everyday necessity will drive adoption more effectively than novelty.

Promises for Homeowners and Buyers

The platform’s ambitions extend beyond renters. MegPrime also claims that homeowners using its ecosystem may gain access to mortgage rates significantly below prevailing market levels. The company suggests rates could be as much as two percentage points lower than the average, a difference that could translate into substantial long-term savings.

This claim stands out at a time when the average 30-year fixed mortgage rate in the US remains above 6%, according to data from Freddie Mac. If MegPrime’s model delivers even part of that promised reduction, it could attract attention well beyond the crypto community.

Regulatory Winds Are Shifting

The SEC’s willingness to issue a no-action letter reflects a broader change in tone from US regulators. Current SEC Chair Paul Atkins has repeatedly expressed more favorable views toward crypto innovation, emphasizing the need for clarity rather than confrontation.

Earlier this week, Atkins publicly stated he is optimistic about the prospects of pro-crypto legislation being signed into law this year. That regulatory backdrop has encouraged companies like Megatel to test new ideas that would have been considered too risky just a few years ago.

A New Experiment in Housing and Crypto

MegPrime represents an ambitious experiment rather than a guaranteed success. Its long-term impact will depend on user adoption, regulatory consistency, and whether its promised benefits translate into real financial relief for renters and buyers.

Still, the project highlights a growing trend: crypto is increasingly being framed not as a speculative asset class, but as infrastructure for everyday financial activity. By embedding tokens into rent payments and home financing, Megatel is attempting to move digital assets out of trading screens and into daily life.

Whether MegPrime becomes a model for the future of housing finance or remains a niche innovation, its SEC green light marks an important moment for crypto’s expanding role in the US economy.

How Crypto-Era Infrastructure Quietly Became the Backbone of Artificial Intelligence

What once powered the world’s most energy-hungry cryptocurrency mines is now silently fueling the rapid expansion of artificial intelligence. The story of CoreWeave is not just a corporate pivot; it is a revealing snapshot of how technological infrastructure rarely disappears. Instead, it evolves, migrates, and resurfaces at the center of the next global innovation wave.

As Big Tech’s dominance over computing infrastructure begins to loosen, former crypto miners are stepping into an unexpected role: becoming the unseen architects of the AI economy.

The End of Proof-of-Work Was Not the End of GPUs

When Ethereum abandoned proof-of-work, many assumed that the massive GPU fleets built for mining would become obsolete overnight. The opposite happened. That moment triggered one of the most efficient reallocations of computing power in modern tech history.

With GPU-based mining demand collapsing, companies that had already mastered large-scale hardware deployment, power optimization, and data center management faced a simple choice: fade away or adapt. CoreWeave chose adaptation.

Rather than clinging to a declining mining model, the company began repositioning its infrastructure toward cloud computing and high-performance workloads. As artificial intelligence training exploded in complexity and scale, those same GPUs suddenly became some of the most valuable assets in the digital economy.

CoreWeave’s Quiet Pivot Into AI Infrastructure

CoreWeave’s transformation did not happen overnight, nor did it begin after the AI hype cycle captured headlines. As early as 2019, the company started moving away from pure crypto mining, laying the groundwork for a broader computing services strategy.

Crypto Slump Hits ARK ETFs in Q4 as Coinbase Emerges Top Detractor

The fourth quarter of 2025 proved challenging for the crypto market, and its ripple effects were felt strongly across several of Cathie Wood’s flagship ARK exchange-traded funds (ETFs). The downturn highlighted just how intertwined these ETFs have become with the performance of digital assets, with Coinbase and Roblox emerging as the largest drags on returns.

ARK’s quarterly report, released Wednesday, revealed that weakness in crypto-linked equities, particularly Coinbase, was a central factor behind underperformance. Funds such as the ARK Next Generation Internet ETF (ARKW), ARK Blockchain & Fintech Innovation ETF (ARKF), and ARK Innovation ETF (ARKK) all suffered noticeable setbacks due to declines in these holdings.

Coinbase: From Growth Potential to Performance Drag

Coinbase, once a poster child for crypto trading platforms, experienced a sharper decline than major cryptocurrencies during the quarter. Spot trading volumes on centralized exchanges fell nearly 9% quarter-over-quarter following the October $19 billion liquidation event, putting additional pressure on Coinbase’s shares. While Bitcoin and Ether posted losses of 22% and 28% respectively, Coinbase’s stock fell from $346 at the start of October to $226 by year-end, representing a nearly 35% drop.

ARK noted that the stock faced market headwinds despite hosting a product showcase aimed at demonstrating its long-term ambitions. Coinbase highlighted plans for on-chain equities, prediction markets, an AI-powered portfolio advisor, and a broader rollout of its Layer 2 Base app. Yet, even with these strategic initiatives, challenging market conditions overshadowed the company’s growth narrative, leaving it as the largest detractor in multiple ARK ETFs.

Roblox: Unexpected Challenges Weigh on ARK Funds

Following Coinbase, Roblox became the second-largest performance drag across ARK’s ETFs. This was despite the company reporting strong third-quarter results, including a 51% year-over-year growth in bookings. However, the outlook for 2026 raised concerns, as Roblox warned of declining operating margins due to increased spending on infrastructure and safety measures.

Complicating matters further, Roblox faced regulatory pressures internationally, including a ban in Russia that affected roughly 8% of its daily active users. These developments, combined with market volatility, contributed to the stock’s impact on ARK’s fund performance.

ARK’s Crypto Exposure and Key Holdings

ARK’s ETFs have grown increasingly sensitive to the performance of crypto-linked equities. Crypto exposure now accounts for roughly 13.7% of ARKW, 14.6% of ARKF, and 7.4% of ARKK. Beyond Coinbase and Roblox, ARK’s top crypto-linked holdings include Robinhood Markets, Circle Internet Group, Block, and direct Bitcoin exposure through the ARK 21Shares Bitcoin ETF. This exposure underscores the ETFs’ reliance on both crypto market dynamics and the broader performance of tech-driven platforms connected to digital assets.

Wall Street Sees Potential Rebound

Despite the recent downturn, some analysts on Wall Street are growing optimistic about Coinbase’s future prospects. Last week, Bank of America upgraded Coinbase from neutral to buy, emphasizing the company’s expanding role in moving financial activity on-chain and its transformation beyond a traditional trading platform into what the bank described as an “everything exchange.” Goldman Sachs has echoed this sentiment, initiating a buy rating and citing undervaluation in crypto-related stocks after the recent pullback. These upgrades suggest that the market may be positioning for a potential rebound as we move into early 2026.

Looking Ahead

As ARK’s ETFs navigate the ongoing volatility, investors are watching closely to gauge whether the current environment offers opportunities or signals further caution. The performance of crypto-linked equities like Coinbase and Roblox highlights the risks inherent in combining traditional ETF structures with the rapidly evolving crypto market. Yet, the recent upgrades by major financial institutions indicate that the long-term narrative for digital assets and connected platforms remains intact, suggesting that savvy investors may find strategic entry points amid the turbulence.

US Senate Judiciary Pushes Back Against Crypto Developer Protections

A growing divide within the US Senate is threatening to reshape the future of crypto regulation, as top lawmakers from both parties move to strip developer safeguards from a key digital asset bill. The dispute highlights rising concerns that proposed protections could unintentionally weaken law enforcement’s ability to combat illicit financial activity in decentralized crypto markets.

At the center of the debate is the Senate’s long-anticipated crypto market structure legislation, which aims to clarify how regulators oversee digital assets and blockchain-based platforms. However, Senate Judiciary Committee leaders argue that parts of the bill could open dangerous loopholes for criminals operating through decentralized systems.

Bipartisan Warning From the Senate Judiciary Committee

Senate Judiciary Committee Chair Charles Grassley and the committee’s senior Democrat, Richard Durbin, issued a rare bipartisan warning to leaders of the Senate Banking Committee. In a letter sent to Banking Chair Tim Scott and ranking member Elizabeth Warren, the lawmakers urged major revisions to the bill’s language.

According to Grassley and Durbin, the current draft risks undermining long-standing unlicensed money transmitter laws by shielding certain crypto developers and network operators from liability. They warned that this could severely limit the government’s ability to pursue bad actors who exploit decentralized platforms for illegal purposes.

The letter, first reported by Politico, described the proposed protections as creating a  significant enforcement gap  that sophisticated criminal organizations could take advantage of.

Lawmakers Fear Criminal Exploitation of Decentralized Platforms

Grassley and Durbin emphasized that criminal groups already rely on advanced methods to hide illegal transactions, including the use of complex financial structures and anonymizing technologies. They argued that the bill, as currently written, would make it even harder for prosecutors to trace and punish unlawful activity tied to decentralized digital assets.

In their view, removing accountability from developers and network maintainers could turn decentralized platforms into attractive safe havens for illicit actors, including transnational criminal organizations and cartels. The senators stressed that regulatory clarity should not come at the cost of weakening public safety or financial crime enforcement.

The Role of the Blockchain Regulatory Certainty Act

The controversy largely stems from the inclusion of provisions inspired by the Blockchain Regulatory Certainty Act, or BRCA. This proposal seeks to clarify that individuals who develop blockchain software or maintain decentralized networks are not automatically classified as money transmitters under federal or state law.

Supporters argue that such protections are necessary to foster innovation and prevent developers from being punished for how others use open-source technology. Critics, however, warn that overly broad exemptions could shield individuals who play a more active role in facilitating illicit transactions.

Grassley and Durbin contend that the bill fails to clearly distinguish between neutral software development and conduct that effectively enables unlicensed money transmission.

Judiciary Committee Says It Was Left Out of the Process

Adding to the tension, the Senate Judiciary Committee leaders said they were not consulted during the drafting of the bill, despite their committee’s authority over federal criminal statutes and the Department of Justice.

They expressed frustration that proposed changes affecting criminal enforcement were advanced without giving the Judiciary Committee a meaningful opportunity to review or weigh in. In their letter, they urged the Banking Committee to reject any language that could weaken the government’s ability to hold culpable actors accountable.

This procedural dispute has further complicated efforts to move the legislation forward.

Legislative Delays and Political Uncertainty

The crypto market structure bill has already faced setbacks, with both the Senate Banking and Agriculture Committees postponing scheduled markups in an effort to build broader bipartisan support. The latest objections from the Judiciary Committee add another obstacle to an already fragile legislative path.

If the bill eventually reaches the Senate floor, it will require at least 60 votes to pass. That threshold would likely demand unanimous Republican support and backing from several Democrats, making any internal disagreement particularly consequential.

Crypto Industry Support Begins to Fracture

Industry reaction has also been mixed. Coinbase, one of the most influential lobbying forces in the crypto sector, withdrew its support for the bill earlier this week, citing concerns over multiple provisions. While the company has since indicated that negotiations with lawmakers are ongoing, the move underscored growing unease within the industry.

The combination of political resistance and shifting industry alliances raises questions about whether the bill can survive in its current form.

What This Means for the Future of US Crypto Regulation

The clash over developer protections reflects a broader struggle to balance innovation with enforcement in the rapidly evolving crypto space. Lawmakers face mounting pressure to define clear rules without creating blind spots that criminals can exploit.

As negotiations continue behind closed doors, the fate of the crypto market structure bill remains uncertain. What is clear, however, is that the debate has entered a critical phase—one that could shape how decentralized technologies are regulated in the United States for years to come.

Crypto at Davos 2026: When Power, Politics and Money Collide

The World Economic Forum in Davos has always been a stage for global power dynamics, but in 2026, cryptocurrency quietly emerged as one of the most revealing fault lines between governments, central banks and the private sector. While geopolitical disputes and security tensions dominated headlines, digital assets surfaced as a secondary theme that exposed deep disagreements over who should control the future of money.

Crypto was not the headline act at Davos this year, yet its presence was impossible to ignore. From presidential speeches to tense panel discussions, the industry became a mirror reflecting broader anxieties about sovereignty, competition and the balance between innovation and control.

Trump’s Davos Message: Crypto as a Strategic Weapon

US President Donald Trump used his appearance at Davos to reinforce a message he has repeated since returning to office: the United States intends to lead the global crypto race. Speaking to an audience of political leaders and financial executives, Trump framed digital assets not as a speculative trend, but as a geopolitical necessity.

According to Trump, crypto regulation is no longer a domestic policy issue. It is a strategic competition, particularly against China. He expressed confidence that the US would soon finalize a comprehensive crypto market structure bill, commonly referred to as the CLARITY Act, despite recent delays and resistance from major industry players.

Trump’s rhetoric made one thing clear. In his view, whoever controls the regulatory framework for crypto will shape the future of global finance. Allowing rival nations to take the lead, he warned, could permanently weaken US influence over emerging financial infrastructure.

Notably, crypto occupied only a small portion of Trump’s lengthy Davos speech. Yet the symbolism was powerful. His appearance was introduced by BlackRock CEO Larry Fink, underscoring how deeply traditional finance and political leadership are now intertwined with the digital asset conversation.

Central Banks Push Back: Sovereignty Over Innovation

If Trump’s speech framed crypto as opportunity, the response from Europe’s central banking establishment emphasized risk. Nowhere was this contrast clearer than during a panel discussion featuring Banque de France Governor François Villeroy de Galhau and Coinbase CEO Brian Armstrong.

Villeroy de Galhau acknowledged that tokenization and stablecoins are likely to play a major role in modernizing financial infrastructure. He even described tokenization as one of the most significant financial innovations of the coming year, particularly for wholesale and institutional markets. Europe’s progress on central bank digital currencies was presented as evidence that innovation can occur within state-controlled systems.

The tone shifted sharply when the conversation turned to monetary sovereignty. Villeroy de Galhau argued that money cannot be separated from democratic authority. Allowing private entities to issue widely used digital currencies, especially yield-bearing stablecoins, would undermine a core function of the state.

In his view, financial stability depends on governments maintaining control over money creation. Surrendering that role to decentralized or corporate systems would weaken democracy itself.

Bitcoin, Gold and the Battle Over Trust

Brian Armstrong offered a fundamentally different interpretation. He described Bitcoin as a modern evolution of the gold standard, a decentralized alternative that protects societies from excessive government spending and long-term currency debasement.

According to Armstrong, Bitcoin’s structure makes it more neutral and independent than fiat currencies, which are subject to political incentives and fiscal pressure. He framed the debate not as a threat to democracy, but as a healthy competition between systems of trust.

The exchange highlighted the core ideological divide that ran through Davos 2026. While US political messaging increasingly treats crypto as a strategic asset, European monetary authorities remain deeply cautious about private money gaining systemic importance.

Yield-bearing stablecoins became a particular point of contention. European officials warned that interest-paying digital currencies could disrupt banking systems by drawing deposits away from traditional institutions. US crypto executives countered that such incentives are necessary to remain competitive, especially in a world where China is advancing its own state-backed digital currency.

Tokenization Takes Center Stage

While debates over sovereignty dominated headlines, tokenization emerged as one of the few areas of broad consensus. Central bankers and crypto executives alike described tokenization as the next major phase of financial evolution.

Real-world assets, from bonds to state-owned enterprises, are increasingly being represented on blockchain networks. Zhao revealed that he is in discussions with multiple governments about tokenizing public assets as a way to unlock value and fund economic development.

This convergence was notable. Even critics of private digital money acknowledged that blockchain-based infrastructure could improve efficiency, transparency and settlement speed in traditional markets.

Stablecoins and the Fear of Bank Runs

Circle CEO Jeremy Allaire addressed one of the most persistent criticisms of stablecoins: the fear that they could trigger bank runs. Speaking at Davos, Allaire dismissed these concerns outright.

He argued that the incentives offered by interest-paying stablecoins are too small to meaningfully disrupt the banking system. According to Allaire, such rewards function primarily as customer retention tools rather than mechanisms capable of draining deposits at scale.

He pointed to money market funds as a historical comparison. Despite decades of warnings, trillions of dollars have flowed into these instruments without collapsing the banking sector. In his view, the shift away from banks toward private credit and capital markets was already underway, independent of stablecoins.

What Davos 2026 Revealed About Crypto’s Future

Just a few years ago, stablecoins were associated with crisis and collapse, most notably during the implosion of the Terra ecosystem in 2022. That episode damaged the public image of digital dollars and fueled skepticism among regulators.

Davos 2026 painted a different picture. Stablecoins and tokenization were no longer fringe topics. They were embedded in discussions among presidents, central bankers and corporate leaders shaping global policy.

The divide remains clear. The US political establishment increasingly views crypto as a tool of strategic competition, while European central banks emphasize caution, sovereignty and control. Regulation continues to move slowly, constrained by domestic politics and ideological disagreement.

Yet one conclusion stood out. Crypto is no longer asking for a seat at the table. It is already there, influencing debates about power, money and the future of the global financial system.

USS Status Launch: Crypto Pioneer Returns with Satirical Cartoon, Privacy App, and Gasless L2 Blockchain