Markets entered the week in a holding pattern as bitcoin drifted below $90,000 amid thin liquidity and heightened macro uncertainty. With investors bracing for a dense slate of U.S. economic data and a potentially consequential Bank of Japan policy decision, risk appetite remained subdued across digital assets. Beneath the muted price action, however, structural developments continued to advance, from sovereign tokenization initiatives and stablecoin oversight frameworks to on-chain capital markets activity and institutional-grade execution infrastructure. Welcome to the Institutional Weekly.
Bitcoin drifts below $90K as markets pause ahead of macro catalysts
Bitcoin traded slightly below the $90,000 level over the weekend, reflecting subdued risk appetite as investors positioned cautiously ahead of a dense macroeconomic calendar. With volumes thinning during Sunday trading, BTC hovered around $89,600, down marginally on the day and roughly 7.6% lower month-on-month, while Ethereum held near $3,100 and outperformed bitcoin on a weekly basis.
Across the broader market, weakness persisted. Solana, XRP, Dogecoin, and Cardano all posted additional daily losses and remain down double digits over the past month. Total crypto market capitalization stood near $3.15 trillion, while trading volumes hovered around $89 billion — levels consistent with low-conviction conditions. Bitcoin dominance remained elevated near 57%, underscoring continued concentration in the largest asset amid selective positioning.
Attention now turns firmly to macro. U.S. employment data, inflation prints, and PMI releases, alongside speeches from Federal Reserve officials, are expected to shape near-term rate expectations. In parallel, markets are watching the Bank of Japan, where a widely anticipated rate hike could affect yen-funded carry trades — a liquidity source that has historically supported global risk assets, including crypto.
Pakistan accelerates crypto adoption with $2B tokenization push and stablecoin plans
Pakistan moved to significantly expand its digital asset strategy after signing a memorandum of understanding with Binance to explore tokenizing up to $2 billion in state-owned assets. The initiative includes sovereign bonds, treasury bills, and commodity reserves, positioning blockchain infrastructure as a potential distribution layer for government-backed instruments.
Regulatory momentum is also building. Pakistan’s Virtual Assets Regulatory Authority granted preliminary clearances to Binance and HTX, allowing both firms to begin AML registration and prepare full license applications. Officials estimate Pakistan now hosts over 40 million crypto users and more than $300 billion in annual trading volume, making it one of the world’s largest retail crypto markets.
Alongside tokenization, regulators have confirmed plans to launch a sovereign stablecoin and pursue a central bank digital currency pilot. Combined with recent announcements around a strategic Bitcoin reserve and large-scale mining allocations, Pakistan is signaling a coordinated effort to embed crypto infrastructure into its broader financial modernization agenda.
Moody’s proposes global framework to rate stablecoins by reserve quality
Moody’s unveiled a proposed framework for assigning credit ratings to stablecoins, aiming to differentiate tokens based on the quality, liquidity, and risk profile of their reserve assets. Under the proposal, two dollar-pegged stablecoins claiming full backing could receive different ratings depending on reserve composition, counterparties, and maturity risk.
The methodology would assess reserve asset credit quality, market value sensitivity, and operational risks such as liquidity management, technology resilience, and segregation of assets. Moody’s emphasized that effective segregation — ensuring reserves can only be used to satisfy stablecoin obligations, even in bankruptcy — is central to its analysis.
The proposal comes amid rapid growth in stablecoins and new regulatory clarity in the U.S. following the passage of the GENIUS Act. With stablecoins increasingly used for settlement, treasury management, and on-chain capital markets, standardized ratings could become a key tool for institutional adoption. Moody’s has invited public feedback on the framework through January 2026.
U.S. regulators advance trust-bank charters for major crypto firms
Several leading crypto firms received conditional approval from the U.S. Office of the Comptroller of the Currency to operate as federally regulated national trust banks. Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos were among the firms approved to proceed toward limited-purpose bank charters focused on custody and asset safeguarding.
While these charters would not allow deposit-taking or lending, they would enable firms to custody digital assets under federal oversight — a significant step toward integrating crypto infrastructure into the U.S. banking framework. Regulators described the move as supportive of competition and innovation within the financial system.
The approvals reflect a broader regulatory shift toward formalizing stablecoin issuance and digital asset custody under standardized federal supervision. For stablecoin issuers in particular, national trust charters could provide a clearer pathway to scale compliant products in line with GENIUS Act requirements.
Learn how Finery Markets supports stablecoin issues here.
JPMorgan executes tokenized commercial paper on Solana
JPMorgan arranged one of the first U.S. commercial paper issuances executed on a public blockchain, facilitating Galaxy Digital’s short-term debt issuance via tokenized instruments on Solana. The issuance introduced the USCP token, with both issuance and redemption settled using USDC stablecoins.
Coinbase and Franklin Templeton participated in the transaction, highlighting institutional appetite for blockchain-native money market instruments. Coinbase provided private-key custody and USDC on- and off-ramps, reinforcing the role of major crypto platforms in enabling regulated on-chain capital markets.
The transaction adds to a growing list of tokenized debt experiments by global financial institutions, including banks and asset managers. As tokenization infrastructure matures, public blockchains are increasingly being tested as settlement layers for traditional financial instruments rather than speculative assets alone.
Klarna explores crypto wallets following stablecoin launch
Klarna announced a partnership with wallet infrastructure provider Privy to explore consumer-facing crypto wallet solutions, following the recent launch of its U.S. dollar-backed stablecoin, KlarnaUSD. The initiative is positioned as a research effort aimed at simplifying digital asset storage and transactions for mainstream users.
KlarnaUSD was issued on Tempo, a payments-focused blockchain backed by Stripe and Paradigm, and is intended to reduce cross-border payment costs for Klarna’s global customer base. The firm cited improvements in crypto scalability, cost efficiency, and regulatory clarity as factors enabling its shift in stance toward digital assets.
While Klarna emphasized that no product launch is guaranteed, the move reflects a broader trend of fintech platforms integrating stablecoins and wallet infrastructure as programmable payment rails rather than speculative instruments.
Binance introduces IOIs to support discreet institutional execution
Binance launched a private Indication of Interest (IOI) feature designed to help institutional and high-net-worth clients execute large spot and loan trades without signaling intent on public order books. The feature mirrors traditional finance practices by allowing non-binding expressions of interest routed privately through Binance’s OTC desk.
IOIs are available for verified users typically trading in sizes above $200,000 and are intended to reduce slippage and market impact, particularly in mid- and small-cap assets where liquidity remains fragmented. Trades are only executed once counterparties are matched and terms finalized, with no upfront fees for submitting IOIs.
The addition complements Binance’s existing RFQ functionality and reflects growing convergence between crypto market structure and traditional institutional execution workflows as larger participants demand discretion and liquidity efficiency.
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.
LinkedIn
Youtube
Medium
Twitter
