Crypto’s “age of speculation” is coming to an end, billionaire investor Mike Novogratz declared on Tuesday. At an industry event this week, the Galaxy CEO argued that the combination of a brutal market downturn and Wall Street’s encroachment of crypto will drive more risk-averse investors to tap into digital assets. Speculation will “be transposed or replaced by us using these same rails, these crypto rails, to bring banking [and] financial services to the whole world,” Novogratz said at the CNBC Digita ...

Core Insights - The Eurozone is expected to see significant growth in euro-pegged stablecoins, with projections indicating an increase from €650 million to €1.1 billion by 2030, equivalent to $768 million to $1.2 billion [1] - The growth of digital assets will primarily be driven by the tokenization of real-world assets rather than payments, presenting both opportunities and threats to traditional banks [2] - Major banks and financial institutions are rapidly adopting stablecoin technology in response to clearer regulations, with the stablecoin market currently valued at $305.2 billion [3] Group 1: Market Growth and Projections - S&P Global Ratings anticipates that top European banks will issue euro-pegged digital tokens this year, contributing to a substantial market increase [1] - The report highlights that the tokenization of asset classes can enhance efficiencies in capital markets and improve access for investors [5] - The Eurozone is positioned to catch up in stablecoin adoption due to the regulatory framework provided by the EU's Markets in Crypto-Assets regulation [6] Group 2: Industry Dynamics and Adoption - Established banks are recognizing the potential revenue opportunities from stablecoins while also facing competition from non-bank platforms [2] - The US is currently leading in the tokenization of assets, with major firms like BlackRock advocating for its future in finance [4] - Eleven European banks are collaborating to launch a euro-denominated stablecoin, expected to be released this year [7]

Group 1: Ethereum's Market Position - Ethereum is leading the tokenization of real-world assets, holding 66% of all tokenized assets, significantly ahead of Binance's BNB Chain at 10% [1] - Other competitors include Solana at 5%, Arbitrum at 4%, Stellar at 4%, and Avalanche at 3%, all of which have a combined market share well below Ethereum's [1] Group 2: Price Performance and Institutional Interest - Despite Ethereum's price being around $3,000, nearly 40% below its all-time high, Wall Street is making significant investments in Ethereum [3] - JPMorgan selected Ethereum for its first tokenized money market fund, valued at $9 trillion, and Morgan Stanley filed for an Ethereum exchange-traded fund [4] - BlackRock's iShares Ethereum Trust ETF has $11 billion in assets under management, with similar ETFs from Grayscale and Fidelity also reporting billions in AUM [4] Group 3: Corporate Investment Trends - Digital asset treasury firms are actively purchasing and staking Ethereum, with Bitmine acquiring an additional $100 million, adding to its $13 billion holdings [5] - Corporate players are typically long-term holders, and their acquisition of Ethereum may reduce liquid supply, potentially supporting price increases [5] Group 4: Broader Market Outlook - BlackRock's 2026 outlook also anticipates growth in the artificial intelligence and defense sectors, suggesting that the ongoing AI revolution has significant implications [6] - The report indicates that while some investors may take profits in AI companies, the overall data does not suggest a bubble [6]

Core Insights - A significant price drop of 81% occurred for the Figure Heloc token, which represents $13 billion in home equity loans, raising concerns about the volatility of such digital assets [1][2] - The incident resulted in a temporary loss of over $10 billion in market value for the token, highlighting potential issues with liquidity and market resilience [2][3] Company Overview - Figure, the issuer of the Heloc token, has a market capitalization of $8.5 billion and recently raised nearly $800 million through a US IPO [3] - The company claims to have originated $13 billion worth of Home Equity Lines of Credit (HELOCs), which are loans secured against the value of homes [5] Industry Context - The tokenization of real-world assets, including consumer loans, has grown into an $18 billion market this year, with projections suggesting it could expand to a $19 trillion industry by 2033 [4] - Proponents of asset tokenization argue it can enhance speed and efficiency in the financial system, although liquidity issues remain a concern [4][5] Liquidity Issues - Figure utilizes the Provenance blockchain for issuing and recording loans, but market data indicates that liquidity for the Heloc token is notably low, with only $1,516 in transactions over the past 24 hours [5][7] - Low liquidity can lead to significant price fluctuations, particularly when large buy or sell orders are placed [7]