Group 1 - World Liberty Financial, backed by the Trump family, is seeking to establish a national trust bank focused on stablecoin operations [1] - The subsidiary WLTC Holdings has filed a "de novo" application for a bank charter to issue and custody USD1, a dollar-backed stablecoin that has over $3.3 billion in circulation [2][3] - The proposed trust bank will offer stablecoin issuance, redemption, and custody services, and plans to allow fee-free conversion between U.S. dollars and USD1 at launch [3] Group 2 - The establishment of national trust banks by cryptocurrency firms marks a significant step in integrating digital assets into the regulated banking system [1] - The OCC currently supervises about 60 national trust banks, with Anchorage Digital being the only digital asset company that holds a national trust bank charter [2] - The trust bank will comply with the recently passed GENIUS Act, which provides a federal regulatory framework for stablecoins [3]

Dominic Gwinn / Middle East Images / Middle East Images via AFP Michael Saylor, executive chair of Strategy, is a big backer of bitcoin. Key Takeaways Strategy, the public company with a massive stockpile of bitcoin, won't be getting the boot from major indexes for now. MSCI on Tuesday evening said it intends to start a broader review of the matter. In the meanwhile, the stock is rising. Strategy shareholders haven't caught many breaks lately. They did this week. Index provider MSCI late Tuesday s ...

Core Insights - Morgan Stanley has filed for an Ethereum Trust with the SEC, marking its third crypto ETF filing in 48 hours after registering Bitcoin and Solana trusts [1][6]. Group 1: Ethereum Trust Details - The Morgan Stanley Ethereum Trust will be a passive investment vehicle that holds ether directly and values shares daily based on a pricing benchmark from major trading venues [2]. - The trust plans to stake a portion of its ETH holdings and distribute rewards to shareholders at least quarterly, subject to IRS guidance [2][3]. - This structure allows investors to earn staking yield while holding shares in a traditional brokerage account, with a staking program implemented to earn network rewards while managing liquidity for redemptions [3]. Group 2: Wall Street's Crypto Expansion - The filings come as regulators under President Trump have adopted a more accommodating approach to crypto markets, enabling traditional financial firms to expand ETF offerings tied to digital assets [4]. - Morgan Stanley has broadened access to crypto funds for all clients, including those with retirement accounts, after previously limiting exposure to high-net-worth individuals [4]. - The bank partnered with Zerohash to enable trading of Bitcoin, Ethereum, and Solana through its E*Trade platform, following similar moves by Bank of America [5]. Group 3: Industry Shift - Morgan Stanley's rapid filings for Bitcoin and Solana Trusts represent a significant shift for Wall Street, indicating a growing acceptance of digital assets [6][7]. - The simultaneous movement of major banks like Goldman Sachs, JPMorgan, and Bank of America into crypto ETFs signals a structural change in how Wall Street perceives digital assets [7].

Market Overview - Bitcoin (BTC) and most other digital assets experienced a decline in U.S. trading, with Bitcoin down 3% over the past 24 hours, currently priced at $91,100 [1] - The CoinDesk 20 Index, which tracks the top 20 crypto assets, is trading nearly 4% lower, with XRP leading the decline at over 8% [1] - Ether (ETH) also saw a decrease of 3.6%, despite Morgan Stanley's recent announcement to offer a spot ETH ETF [1] Precious Metals and Digital Asset Stocks - The crypto selloff occurred while the Nasdaq increased by 0.5%, but precious metals like gold and silver retreated, with gold down 1% and silver down 5% [2] - Digital asset treasury (DAT) stocks did not gain significantly from MSCI's announcement regarding Strategy (MSTR), which remains in its indexes for now. MSTR saw a 1% gain, while Bitmine Immersion (BMNR) fell by 6%, Sharplink Gaming (SBET) decreased by 2%, and XXI (XXI) dropped by 5% [3] MSTR to IBIT Ratio - On a weekly basis, the ratio of MSTR to the iShares Bitcoin Trust (IBIT) has bounced off the 3-level for the second consecutive week, currently trading around 3.11. This ratio previously held 3 as support in March 2024 before peaking at 9.5 in November 2024, coinciding with MSTR's all-time high [4]

Core Viewpoint - MSCI has decided not to exclude bitcoin treasury companies from its global indices, allowing companies like Strategy to remain in benchmark equity indices for now [1][4]. Group 1: Market Impact - Following MSCI's announcement, shares of Strategy increased by 5.5% [1]. - JPMorgan analysts estimated that if MSCI had removed Strategy from its indices, it could have faced approximately $2.8 billion in outflows, with an additional $8.8 billion in potential selling pressure from other index providers adopting similar measures [2]. Group 2: Company Financials - Strategy disclosed a cash reserve of $2.19 billion as of December 21, which provides a buffer against volatility or unexpected operational needs [3]. Group 3: MSCI's Future Plans - MSCI plans to open a broader consultation regarding the treatment of non-operating companies, aiming to ensure consistency with the objectives of the MSCI Indexes [5][6]. - The organization will assess eligibility for entities holding non-operating assets as part of core operations, which may require additional criteria based on financial statements [6]. Group 4: Current Treatment of Digital Asset Companies - Securities on MSCI's preliminary list with digital assets comprising 50% or more of total assets will not see changes to their current treatment, and there will be no increases to the number of shares or inclusion factors for these securities [7].

Group 1 - Barclays has acquired a stake in Ubyx, a U.S. startup focused on stablecoin settlement, emphasizing the importance of interoperability for digital assets [1] - Ubyx, founded by former Citi executive Tony McLaughlin, aims to create a clearing system for stablecoins and tokenized deposits, allowing deposits from various issuers and currencies into bank and fintech accounts [2] - The startup's goal is to help stablecoins achieve "cash equivalent status" to promote mainstream corporate adoption [2] Group 2 - McLaughlin envisions stablecoins addressing all payment use cases, contingent on seamless on- and off-ramping for banks and fintechs, predicting a "pluralistic market structure" with interconnected issuers and currencies [3] - Ubyx previously raised $10 million in a seed round in July 2025, with investments from notable firms including Galaxy Ventures and Coinbase Ventures [3] - The UK is advancing its stablecoin regulations, following the U.S. GENIUS Act, with proposed rules including caps on holdings for individuals and small businesses, indicating a shift towards practical integration of digital money [4]

Core Viewpoint - Hyperscale Data, Inc. reported estimated total assets of approximately $369 million and net assets of approximately $168 million as of December 31, 2025, indicating a strong balance sheet position and a disciplined approach to digital asset management [1][2][3][4]. Financial Summary - The estimated total assets of Hyperscale Data equate to approximately $1.14 per share of Class A common stock, while the estimated net assets equate to approximately $0.50 per share [1]. - The company's cash and Bitcoin holdings are valued at approximately $91 million, representing a significant portion of total assets [2]. Operational Insights - During Q4 2025, the company expanded its digital asset holdings, invested in high-performance computing infrastructure, and optimized its capital structure [3]. - The company aims to provide stockholders with monthly updates on its estimated total assets and net assets per share to enhance transparency and long-term value creation [5]. Business Structure - Hyperscale Data operates through its subsidiary Sentinum, Inc., which manages a data center for mining digital assets and offering colocation and hosting services [6]. - The company is planning to divest Ault Capital Group, Inc. (ACG) in Q3 2026, which will allow it to focus on data center operations and digital asset holdings [7]. Shareholder Information - On December 23, 2024, the company issued one million shares of Series F Exchangeable Preferred Stock to common stockholders, which will be exchanged for shares of ACG upon the divestiture [8][9].

Core Insights - Barclays has announced a strategic investment in Ubyx Inc., a US-based clearing system for digital money, including tokenized deposits and regulated stablecoins [1][2] - The investment aims to enhance interoperability in the evolving landscape of tokens, blockchains, and wallets, facilitating seamless interaction for regulated financial institutions [2][3] - Ubyx's mission is to build a global acceptance network for regulated digital money, emphasizing the importance of bank participation for redemption at par value through regulated channels [3] Company Overview - Ubyx aims to promote the ubiquity of tokenized money by connecting multiple issuers with receiving institutions in a shared settlement environment, enabling the redemption of digital money at par and supporting currency uniformity [5] - Barclays envisions being a leading provider in global finance, with diversified business areas including retail, corporate, wealth management, and investment banking [4]

Core Viewpoint - MSCI's decision not to exclude digital asset treasury firms from its indexes provides immediate relief for companies like Strategy (MSTR), which hold significant amounts of bitcoin on their balance sheets [1][3]. Group 1: Market Reaction - Shares of Strategy (MSTR) increased nearly 6% in post-market trading following MSCI's announcement [1]. - Analysts view the decision as a positive development, with Lance Vitanza from TD Cowen rating MSTR a buy with a price target of $500 [2]. Group 2: Analyst Perspectives - Mark Palmer from Benchmark, who has a buy rating and a price target of $705, sees the MSCI decision as a reprieve for Strategy, suggesting that the company's arguments against exclusion were effective [3]. - Despite the positive news, analysts express caution regarding the long-term implications, noting that MSCI's consideration of excluding non-operating companies from its indexes indicates that the situation may not be fully resolved [3]. Group 3: Broader Implications - The outcome of MSCI's decision is significant for crypto treasury firms, as it affects not only Strategy but also any company that incorporates digital assets into its treasury operations [3]. - Future revisions of MSCI's rules could lead to renewed scrutiny for Strategy and potentially impact its inclusion in key market indexes [3].

Group 1 - Morgan Stanley is entering the cryptocurrency ETF space by submitting paperwork for a Bitcoin Trust and a Solana Trust, which will hold the respective cryptocurrencies [2] - The move aligns Morgan Stanley with other major Wall Street banks like Goldman Sachs, Citigroup, and JPMorgan Chase, which have also launched crypto-related projects [2] - Over $150 billion has been invested in approximately 130 U.S. funds focused on cryptocurrencies, with a significant portion tied to Bitcoin-specific products that have seen success since their launch in January 2024 [3] Group 2 - The increasing involvement of traditional financial institutions in the crypto market indicates that crypto is becoming an essential asset class, as noted by Todd Sohn, a senior ETF strategist [4] - The GENIUS Act, which established a comprehensive federal framework for regulating stablecoins, has contributed to a more favorable U.S. policy environment for cryptocurrencies [4] - Institutional capital entering the crypto markets has brought expectations for predictable cash flows and regulatory clarity, while retail investors have become more selective following past market collapses [5]