Nomura Holdings is tightening risk controls at its European crypto subsidiary after recording third-quarter losses, marking a cautious retreat from digital assets amid mounting pressure from market volatility. The move comes as Bitcoin broke below $80,000 over the weekend and firms holding large digital asset reserves report billions in unrealized losses. According to Bloomberg, shares of the Tokyo-listed firm tumbled 6.7% on Monday, the biggest intraday decline in more than nine months, after net incom ...

Core Viewpoint - The rise of populism is influencing financial policies, favoring fintech companies that aim to improve affordability and efficiency in the financial system [2][3]. Financial Sector Outlook - The financial sector is viewed positively, with expectations of consumer resilience and stable credit conditions [3]. - Policy shifts away from deregulation are expected to benefit disruptors and innovative companies in the fintech space [3]. Fintech Opportunities - Companies targeting small and medium-sized businesses or retail are likely to experience significant tailwinds [6]. - Key fintech subsectors identified include Buy Now Pay Later (BNPL) services and digital assets, with companies like Affirm, Circle, and Coinbase highlighted as potential winners [7][8]. Regulatory Environment - Increased regulation in digital assets may affirm the legitimacy of these businesses, transitioning from an enforcement-focused environment to a regulatory one [12]. - The market may have overreacted to negative news regarding credit card rate caps, as fintech companies can adapt their pricing structures more easily [11]. Investment Strategy - The fintech basket is characterized as high beta compared to traditional equities, suggesting it should be a satellite position within a diversified portfolio [13]. - Investors may achieve similar exposure to traditional financials with a smaller investment in fintech, given its higher volatility [15]. Corporate Response to Political Climate - Companies are already responding to the political discourse around affordability, even without concrete policy changes [16][17]. - The ongoing populist narrative may drive corporate actions that benefit fintech companies, increasing liquidity in the system [18].

Strategy (MSTR) is ahead 6% in after-hours trading on Tuesday after MSCI decided not to exclude digital asset treasury companies (DATs) from its indexes. "Distinguishing between investment companies and other companies that hold non-operating assets, such as digital assets, as part of their core operations rather than for investment purposes requires further research and consultation with market participants," said MSCI in a statement. "For instance, assessing index eligibility across a range of these typ ...

Group 1 - The investment philosophy focuses on deep fundamentals, impactful narratives, and Austrian economics, with a primary emphasis on a global, long-run macro view for investment considerations [1] - Long-horizon research will concentrate on digital assets, macroeconomic factors, and general value opportunities, while short-horizon research will target options and volatility for income generation and hedging [1]

Group 1 - Coinbase announced the acquisition of prediction markets startup The Clearing Company [1] - This move indicates Coinbase's strategy to expand beyond its core digital assets business [1]

Core Insights - Abu Dhabi Global Market (ADGM) is entering its second decade with the announcement of 11 new significant global financial institutions, representing managed assets exceeding $9 trillion, marking a substantial increase from $635 billion last year and $450 billion in 2023 [1][3][5] Group 1: Growth and Expansion - The announcements made during the Abu Dhabi Finance Week (ADFW) highlight the growing influence of Abu Dhabi as the "Capital of Capital" and position ADFW as a global platform for capital flows through leading institutions and a premier regulatory ecosystem at ADGM [2][5] - The strong increase in managed assets at ADGM solidifies its position as the fastest-growing international financial center in the region and one of the most dynamic globally, indicating a shift in Abu Dhabi's role within the global financial system [3][5] Group 2: Institutional Presence - Notable institutions such as Cantor Fitzgerald, BBVA, UBS Group, KKR, and others have announced their presence in ADGM, marking a strong start for the next growth decade [4][5] - The commitments from these global firms reflect long-term confidence in Abu Dhabi's regulatory clarity and the capacity of ADGM to support increasingly sophisticated financial activities [6] Group 3: Digital Assets and Innovation - Binance received a formal global license from the Financial Services Regulatory Authority (FSRA) of ADGM, becoming the first cryptocurrency exchange to operate under a comprehensive regulatory framework in Abu Dhabi, marking a significant milestone for the digital asset industry [6][7] - Other fintech and digital asset companies, including iCapital and Galaxy Digital, are also expanding their operations in ADGM, indicating a growing ecosystem for digital finance [8] Group 4: Strategic Collaborations - RIQ, owned by IHC, plans to collaborate with Swiss Re to develop risk, data, and AI-driven reinsurance solutions from its base in ADGM, showcasing the center's appeal for innovative financial solutions [9] - JPMorgan is expanding its payment and treasury business from ADGM, enabling the company to offer a wide range of solutions, including liquidity management and multi-currency payment functions [10]

Core Insights - Terawulf Inc. (NASDAQ:WULF) experienced a significant decline of 10.93% on Wednesday, closing at $11.57, as investors reduced their stakes in AI-related stocks due to concerns over heavy spending in the sector [1][3] - The drop in Terawulf's stock was influenced by Blue Owl Capital's decision to withdraw its $10 billion financial support for Oracle Corp.'s data center project in Michigan, raising concerns about Oracle's substantial debt of $108 billion and its ability to manage AI expansion costs [2][3] Company Performance - In the third quarter, Terawulf reported total revenues of $50.58 million, representing an 87% increase from $27.06 million in the same period last year [4] - Digital assets were the primary revenue source, contributing $43.37 million, while HPC leasing generated $7.2 million, a notable increase from zero in the previous year [4] - However, the company faced a significant net loss of $455 million, which widened by nearly 2,000% from $22.7 million year-on-year [4] Market Context - The negative sentiment surrounding Terawulf and similar HPC stocks was exacerbated by concerns regarding Oracle's financial health and its ability to repay its debts, which has implications for the broader AI and HPC market [3] - The transition of Terawulf from a Bitcoin-mining firm to a provider of HPC and AI services reflects the growing demand for data services, although the current market conditions pose challenges [3]

Catch Scott Lucas, Managing Director, Head of Markets Digital Assets from J.P. Morgan at Solana Breakpoint on Day 3. https://t.co/tRdRI2bOqe ...

Core Insights - A significant 87% of high-net-worth individuals (HNWIs) in Asia currently hold digital assets, with 60% planning to increase their allocations, indicating a maturing digital asset landscape in the region [1][3][2] Group 1: Digital Asset Adoption - The Sygnum APAC HNWI Report 2025 surveyed over 270 wealthy and professional investors across 10 Asia-Pacific markets, revealing that digital assets are becoming integral to long-term wealth strategies [2] - 49% of respondents allocate more than 10% of their portfolios to crypto, with median exposure in the 10–20% range [3] Group 2: Investment Behavior - 90% of respondents view digital assets as crucial for long-term wealth preservation and generational planning, with diversification now being the primary motivation for investment decisions [5] - There is a rising appetite for sophisticated investment products among HNWIs, including actively managed strategies and yield-enhanced products [6] Group 3: Regulatory Environment - Singapore's Monetary Authority of Singapore (MAS) framework and Hong Kong's evolving digital asset regulations are creating the necessary infrastructure for traditional wealth managers to offer crypto services [8] - The expectation is shifting towards traditional wealth managers to adapt and provide crypto exposure, as investors are increasingly moving funds away from advisors who do not meet this demand [7]

Core Insights - Digital assets are transitioning from an experimental phase to a fundamental component of financial infrastructure, with large institutions increasingly utilizing public blockchains [1] - The concept of "hybrid finance" is emerging, characterized by the integration of crypto systems with traditional finance to enhance market operations [1] Integration of Digital Assets - Digital assets are becoming part of the traditional economy, with expectations for 2026 to see further consolidation into the real economy [2] - The report highlights the growing use of stablecoins and tokenized assets, particularly in private credit and U.S. Treasuries, along with an increase in tokenized funds and deposits [2] Bitcoin Mainstreaming - Bitcoin's adoption is accelerating, evidenced by over $90 billion in U.S. spot ETF inflows and more than one million BTC held by corporate treasuries across 190 public companies [3] - The asset management firm anticipates broader access to Bitcoin through wealth platforms and retirement accounts, as well as more direct institutional settlements from custody banks [3] Bitcoin Price Projections - Three potential price trajectories for Bitcoin are outlined: a soft landing could push prices above $150,000, steady growth may result in a range of $110,000–$140,000, while stagflation or recession could lead to short-term price declines before recovery [4] - Competition to establish a settlement layer for hybrid finance is intensifying, with Ethereum remaining a key player despite emerging rivals [4] Financial System Transformation - The year 2026 is expected to witness a financial system rearchitecting around public blockchains and digital settlement layers [5] - The report notes increasing regulatory divergence across regions, including Europe's MiCA framework, U.S. stablecoin policies, and Asia's Basel-style approaches, alongside structural shifts such as miners transitioning to high-performance computing and AI infrastructure [5]