Digital assets saw renewed momentum this week as Bitcoin rebounded above $103K, driven by whale accumulation and renewed institutional flows. Regulatory developments took center stage, with the UK set to unveil its stablecoin regime and Japan launching a multi-bank pilot for tokenized payments. Meanwhile, Mastercard’s new settlement test using Ripple’s RLUSD on XRPL signaled growing interest in blockchain-based payment infrastructure, even as ETF flows and macro data continued to shape investor sentiment.
Bitcoin rebounds above $103K as whales accumulate $3B
The broader crypto market rebounded 4% this week, lifting total capitalization to $3.49 trillion. Bitcoin rose 3% to trade above $103,600, while Ethereum climbed 4% to $3,446, with select altcoins such as NEAR, ZEC, and DASH outperforming. Renewed optimism for a potential altcoin rotation helped fuel Friday’s rally, as liquidity rotated back into high-beta assets.
On-chain data indicated strong institutional accumulation. According to Santiment, wallets holding between 1,000 and 10,000 BTC added 10,000 coins in 24 hours, expanding total holdings to 4.22 million BTC. Over the past week, whales accumulated roughly 30,000 BTC — equivalent to more than $3 billion. The data suggests a steady return of institutional buyers ahead of the Federal Reserve’s expected shift toward quantitative easing next month.
While capital inflows remain constrained by the U.S. government shutdown, analysts expect macro conditions to turn more supportive once liquidity injections begin. JPMorgan and Ark Invest’s new stake in BitMine, a firm focused on Ethereum infrastructure, also underscores growing institutional confidence in digital assets as regulatory clarity improves.
UK to unveil stablecoin framework on November 10
The Bank of England (BoE) will release its long-awaited consultation on stablecoin regulation on November 10, aiming to synchronize the UK’s framework with the U.S. and EU. Deputy Governor Sarah Breeden said the BoE’s goal is to ensure its regime becomes operational “just as quickly as the U.S.” while maintaining financial stability.
The proposals will initially target “systemic” stablecoins likely to see broad payments adoption, with smaller issuers remaining under Financial Conduct Authority (FCA) supervision. According to Bloomberg, the framework will include temporary holding limits — £20,000 for individuals and £10 million for businesses — to mitigate risks of deposit flight from the traditional banking system.
The consultation comes as the UK seeks to reassert competitiveness in digital finance. The government recently appointed a “digital markets champion” to drive blockchain modernization across wholesale markets, and the FCA has lifted its four-year ban on retail access to crypto exchange-traded notes. Together, the measures position the UK as a credible counterweight to U.S. regulatory leadership in stablecoins.
Mastercard, Ripple, and Gemini pilot XRPL-based settlement
Mastercard is collaborating with Ripple and Gemini to pilot settlement of fiat card transactions using RLUSD, Ripple’s regulated dollar-backed stablecoin, on the XRP Ledger (XRPL). The initiative will be one of the first real-world tests of regulated card settlement through a public blockchain.
Under the program, a regulated U.S. bank will use RLUSD to settle card payments in real time across the XRPL network. The partnership also includes WebBank, Gemini’s issuing partner for its crypto credit cards. Gemini CFO Dan Chen said the project “advances how digital assets are integrated into everyday spending,” extending the firm’s multichain credit card lineup, which now includes a Solana edition offering up to 4% back in SOL rewards.
The move deepens Mastercard’s presence in blockchain finance. In June, it integrated Chainlink to enable onchain fiat-to-crypto conversions, and this week, it also announced a partnership with Humanity Protocol to bring decentralized identity and credit scoring to card services. Together, these initiatives reinforce Mastercard’s long-term strategy of embedding blockchain infrastructure within traditional payment rails.
Italy backs ECB’s digital euro, urges dual-CBDC model
The Italian Banking Association (ABI) voiced strong support for the European Central Bank’s digital euro initiative, describing it as a step toward “digital sovereignty.” However, ABI General Manager Marco Elio Rottigni urged policymakers to phase in associated costs gradually and pursue a “twin approach” that includes both central bank and commercial bank digital currencies.
Rottigni’s comments follow a compromise agreement reached by EU finance ministers and ECB President Christine Lagarde allowing ministers to influence issuance parameters, including personal holding caps. The digital euro project, currently in design phase, is expected to enter pilot testing by 2027 and could launch by 2029 pending legislation next year.
While the ABI supports the initiative, opposition persists among German banking groups and several members of the European Parliament, who warn of potential bank disintermediation. Still, Rottigni argued that Europe cannot “fall behind” the U.S., which has already advanced its stablecoin framework through the GENIUS Act — a sentiment echoing across European policy circles as digital currency competition intensifies.
Bitcoin ETFs record $558M outflow, led by Fidelity
U.S. spot Bitcoin ETFs faced renewed pressure this week, logging $558.4 million in single-day net outflows on Friday — the largest since August. Fidelity’s FBTC led redemptions with $256.7 million, followed by Ark & 21Shares’ ARKBat $144.2 million and BlackRock’s IBIT at $131.4 million, according to SoSoValue.
The pullback marked the seventh outflow day in eight sessions, partially reversing the previous week’s inflow streak. Despite this, cumulative ETF trading volume remains high, averaging $4.5 billion daily as institutional activity persists. Bitcoin itself traded flat around $102,000, reflecting cautious sentiment amid elevated futures open interest.
While IBIT’s market share slipped to 73% from a prior 82%, analysts view the outflows as part of a broader rotation rather than a loss of institutional conviction. JPMorgan reiterated its view that Bitcoin could reach $170,000 within 12 months as volatility normalizes and gold-adjusted valuation metrics tighten.
Bybit and Backed Finance bring tokenized stocks to Mantle
Crypto exchange Bybit has partnered with Backed Finance to launch tokenized equities on the Mantle Layer-2 blockchain. The initiative will allow users to trade onchain representations of major U.S. stocks such as Nvidia, Apple, and Microsoft, bridging traditional equities with DeFi infrastructure.
Backed’s xStocks platform — already integrated with Kraken and Solana protocols like Kamino and Jupiter — has surpassed $1.6 billion in cumulative transaction volume. By connecting directly to Mantle, users can deposit and withdraw tokenized assets seamlessly between Bybit and onchain wallets, improving accessibility and liquidity.
The collaboration marks another step toward integrating real-world assets (RWAs) into the digital economy. Mantle has positioned itself as a gateway for institutions seeking exposure to tokenized assets, recently upgrading to a ZK rolluparchitecture for scalability. “We’re turning tokenized equities from static instruments into programmable assets,” said Mantle advisor Emily Bao.
Japan launches multi-bank stablecoin pilot under FSA
Japan’s Financial Services Agency (FSA) formally launched a stablecoin pilot under its new Payment Innovation Project (PIP), uniting the country’s three megabanks — MUFG, Mizuho, and SMBC — with Mitsubishi Corporationand Progmat. The initiative will test multi-bank issuance of compliant stablecoins classified as “electronic payment instruments.”
The project aims to evaluate interoperability, legal frameworks, and operational soundness for blockchain-based settlement networks. Results from the experiment, which begins this month, will inform national policy and be published by the FSA. The move underscores Japan’s proactive stance toward payment innovation and its goal to modernize the country’s financial infrastructure through coordinated public–private collaboration.
The pilot follows MUFG’s development of Progmat Coin in 2023, which already serves as a foundation for tokenized deposits and digital securities. With this expansion, Japan positions itself among the global frontrunners in regulated stablecoin experimentation — alongside the U.S. and the UK.
JPMorgan sees Bitcoin fair value near $170K
In a new research note, JPMorgan analysts led by Nikolaos Panigirtzoglou projected that Bitcoin could reach $170,000within six to twelve months as leverage resets and volatility relative to gold declines. The team cited a 20% correction from recent highs as a healthy reset following record liquidations in perpetual futures markets.
They noted that open interest ratios in Bitcoin and Ethereum have returned to historical norms after unwinding excess leverage. ETF redemptions have been modest, suggesting long-term investors continue to accumulate. “Deleveraging in perpetual futures is likely behind us,” the report stated, adding that gold’s rising volatility has improved Bitcoin’s attractiveness on a risk-adjusted basis.
The analysts calculated that Bitcoin’s market cap would need to rise by 67%, to roughly $3.5 trillion, to match private-sector investment levels in gold. With current valuations implying a $68,000 discount to fair value, JPMorgan’s model reinforces growing consensus among institutional strategists that structural demand — rather than speculation — is driving the next phase of adoption.
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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