Markets are opening 2026 with a cautious but constructive posture, shaped by improving infrastructure signals rather than broad-based price momentum. Institutional engagement is increasingly visible through ETFs, regulated payment rails, and tokenized financial products, while macro uncertainty continues to limit directional conviction. As investors look ahead to key economic data, positioning remains selective, with capital gravitating toward assets and platforms that offer structural clarity rather than pure upside beta.
Welcome to a new week in crypto.
Altcoins outperform as bitcoin pauses near key levels
After an initial rebound to start the year, crypto price action has entered a holding pattern, with bitcoin and ethereum trading sideways while volatility concentrates in select altcoins. XRP and Solana posted weekly gains of roughly 10% and 7%, respectively, while smaller-cap tokens including Sui, Bittensor, and Shiba Inu advanced by double digits. Rather than signaling a broad risk-on shift, the divergence highlights short-term speculative flows targeting pockets of relative momentum while the market waits for clearer macro direction.
Market participants broadly agree that the move is driven more by sentiment than fundamentals. Analysts point to ETF-related narratives supporting Solana, alongside speculation around a potential XRP ETF approval later in 2026. However, on-chain positioning suggests institutional capital remains cautious, with smart money largely waiting for confirmation from macro data before increasing exposure.
Bitcoin’s consolidation around key technical levels continues to anchor the broader market. Upcoming U.S. employment and inflation data are widely viewed as near-term catalysts that could determine whether bitcoin reclaims higher levels or retests support in the high-$80,000 range. Until then, altcoin rallies remain vulnerable to sharp reversals without sustained volume and broader risk-on confirmation.
BNY moves deeper into onchain finance with tokenized deposits
BNY announced plans to issue tokenized representations of customer deposits on its private, permissioned blockchain, marking a significant step toward programmable onchain cash for institutional use. The digital deposits will initially support collateral and margin workflows, while balances will continue to be recorded in BNY’s traditional systems to meet compliance and regulatory requirements.
The initiative underscores how major financial incumbents are approaching digital assets not as replacements for existing infrastructure, but as extensions of it. By reducing settlement friction and improving liquidity efficiency, tokenized deposits allow banks to modernize internal processes without compromising regulatory oversight. BNY currently safeguards nearly $58 trillion in client assets, giving the initiative substantial institutional weight.
The move aligns BNY with peers expanding similar capabilities. JPMorgan Chase recently announced plans to extend its JPM Coin across the Canton Network, reinforcing a broader trend toward bank-issued digital money. Industry participants view these developments as foundational steps toward interoperable, institution-grade onchain settlement.
Ripple secures FCA approval to scale UK payments infrastructure
Ripple received approval from the Financial Conduct Authority to expand its crypto-enabled payments platform in the UK, securing both Cryptoasset Registration and Electronic Money Institution licenses. The approval allows UK firms to use Ripple’s infrastructure for regulated cross-border payments involving digital assets.
The timing is notable, coming just ahead of the UK’s planned transition to full crypto regulatory oversight in 2027. Under the proposed framework, all crypto firms will need to reapply for authorization and meet standards comparable to those applied to traditional financial products. Ripple’s early approval positions it favorably as regulatory clarity accelerates adoption.
The UK remains a strategic hub for Ripple, hosting its largest office outside the U.S. and serving as a focal point for its institutional expansion. The approval continues a string of regulatory wins following the resolution of Ripple’s long-running U.S. regulatory case, reinforcing the firm’s role as a regulated infrastructure provider rather than a speculative crypto issuer.
Bitcoin ETF inflows surge as institutional demand re-emerges
U.S. spot bitcoin ETFs recorded their strongest inflow day since October, pulling in nearly $700 million in net subscriptions. BlackRock’s iShares Bitcoin Trust led the surge, accounting for more than half of the total, while Fidelity’s offering followed with nearly $200 million in inflows. Combined ETF custody now exceeds $120 billion in bitcoin.
The inflows coincide with bitcoin’s rebound toward the mid-$90,000 range, though derivatives positioning remains relatively flat. Analysts view the flows as a signal of renewed institutional engagement following year-end de-risking, rather than outright speculative excess. Prediction markets now assign a high probability to bitcoin revisiting six-figure levels before a deep retracement.
Traditional finance interest continues to build alongside ETF demand. Morgan Stanley filed preliminary documents for both bitcoin and Solana ETFs, signaling intensifying competition among major asset managers. The expansion of ETF offerings is increasingly seen as a structural rather than cyclical driver of crypto adoption.
Polygon rallies on stablecoin-focused Open Money Stack
Polygon Labs unveiled the Open Money Stack, a new framework designed to support interoperable stablecoin payments across decentralized finance. The announcement sparked a sharp rally in Polygon’s POL token, which gained more than 30% over the week as investors reacted to renewed infrastructure momentum.
The Open Money Stack aims to address a long-standing challenge in crypto: keeping users and liquidity onchain without reliance on traditional banking rails. The framework combines blockchain settlement, wallet infrastructure, fiat on- and off-ramps, compliance tooling, and yield options into a unified stack accessible to both fintechs and financial institutions.
Polygon’s push comes amid intensifying competition in stablecoin infrastructure following regulatory clarity in the U.S. Major players including Visa, Circle, Tether, Stripe, and Klarna are simultaneously building parallel payment rails. Polygon’s strategy centers on interoperability and composability, positioning it as a neutral layer rather than a vertically integrated payments provider.
At Finery Markets, we continue to monitor how evolving regulatory frameworks, monetary policy shifts, and new market infrastructure are shaping digital asset adoption globally. Follow us for deeper insights into institutional flows, stablecoin strategies, and trading technology innovation. This newsletter is provided for informational purposes only and does not constitute investment, financial, or other professional advice.
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