Blockchain & Digital Assets Weekly Briefing - Week 3
- danae317
- Jan 16
- 8 min read
Week ending 16th January 2026
This week’s digital asset headlines show how quickly crypto policy and infrastructure are evolving across both governments and global finance. From a major U.S. legislative pause after industry pressure, to large-scale regulated stablecoin payments launching in the UAE, the gap between political uncertainty and real-world deployment is widening. Meanwhile, new consumer credit products in Argentina, bank-grade stablecoin infrastructure in Europe, and fresh tokenization initiatives from major custodians like State Street all point to accelerating institutional and retail integration of blockchain-based finance.
Coinbase pulls the plug on senate crypto bill, forcing lawmakers to hit pause.
UAE sees first regulated stablecoin payments at scale with Network International integration.
Argentina’s first bitcoin-backed credit card lets users get peso credit without banks or credit history.
ClearBank partners with Taurus to build regulated stablecoin infrastructure for clients.
State Street launches tokenized digital-asset suite amid broader institutional crypto adoption.
Coinbase pulls the plug on senate crypto bill, forcing lawmakers to hit pause
Coinbase’s chief executive, **Brian Armstrong, announced on January 14 2026 that the company “cannot support the bill as written” — a blunt assessment that immediately stalled Senate Banking Committee action on proposed U.S. crypto regulation. The committee postponed a scheduled discussion of the draft legislation shortly after Armstrong’s post.
Armstrong’s statement on X outlined a series of specific objections to the draft text. He said that after reviewing the bill, Coinbase found “too many issues” to back the proposal in its current form. His concerns included what he described as a de facto ban on tokenized equities, restrictions on decentralized finance (DeFi) that could grant “unlimited access to your financial records” and erode privacy, and provisions that would undermine the Commodity Futures Trading Commission’s authority relative to the Securities and Exchange Commission. He also criticized draft amendments that would eliminate rewards on stablecoins, potentially giving banks a competitive advantage.
Armstrong acknowledged the effort by senators toward a bipartisan outcome but argued the bill “would be materially worse than the current status quo.” He emphasized this point with a now-widely quoted line: “We’d rather have no bill than a bad bill.”
He closed with a broader policy message, stating that Coinbase would “keep fighting for all Americans and for economic freedom,” and asserting that cryptocurrencies should be regulated on a level playing field with traditional financial services “so we can build this industry in a safe and trusted way in America.”
The draft legislation aims to establish a clearer regulatory framework by defining when digital assets are treated as securities versus commodities, and by assigning oversight of spot crypto markets to the Commodity Futures Trading Commission. However, Armstrong’s public opposition — given Coinbase’s size, political engagement, and role shaping U.S. crypto policy — immediately clouded the bill’s prospects of advancing through the Senate.
Supporters of the bill view clearer rules as necessary to protect investors and foster responsible innovation. But critics — including Coinbase — say specific provisions as drafted could hamper innovation, limit consumer privacy, and tilt competitive dynamics toward entrenched financial incumbents.
Armstrong’s rejection underscores a broader tension in U.S. crypto policy: balancing regulatory clarity with industry growth, while ensuring that new rules do not inadvertently constrain the very innovation they seek to govern.
UAE sees first regulated stablecoin payments at scale with Network International integration
Network International has become the first payments platform in the United Arab Emirates to enable regulated stablecoin acceptance for retail and online payments, integrating AE Coin—a dirham-pegged, fully reserved stablecoin licensed under UAE regulations—across its merchant payment systems through a partnership with Al Maryah Community Bank (MBank).
What’s new?
Under a memorandum of understanding with MBank, Network International will embed AE Coin into its existing point-of-sale (POS) terminals and e-commerce checkout systems, allowing merchants to accept this regulated digital asset without overhauling their payment infrastructure. Merchants can now process AE Coin payments alongside traditional payment methods both in-store and online.
Why it matters
This development is the first of its kind in the UAE—bringing a Central Bank-licensed stablecoin into real-world use for everyday purchases, rather than leaving it confined to trading or investment environments. By working within regulatory frameworks, the initiative aims to demonstrate how stablecoins can operate at scale in routine commerce, potentially broadening consumer and merchant payment options.
Positive implications
• Regulatory alignment: AE Coin’s licensing under UAE regulations provides a structured compliance backdrop, offering greater confidence relative to unregulated digital assets.
• Expanded payment choice: Merchants and consumers could benefit from an additional payment method that sits alongside cards and digital wallets.
• Market positioning: The UAE continues to emphasize its role as a hub for regulated digital finance innovation, and this marks a concrete step toward broader stablecoin use.
Challenges and uncertainties
• Adoption hurdles: Real-world usage hinges on merchant and consumer willingness to use stablecoins in daily transactions—something that historically evolves slowly without clear incentives.
• User experience complexity: Ensuring seamless conversions, settlement processes, and customer understanding remains critical for uptake.
• Competition and ecosystem: Stablecoin acceptance will compete with existing payment rails, domestic card schemes, and fintech solutions, meaning its success isn’t assured.
Argentina’s first bitcoin-backed credit card lets users get peso credit without banks or credit history
According to La Nación, Argentine digital finance platform Lemon recently introduced a first-of-its-kind Visa credit card backed by Bitcoin, aiming to give users access to peso-denominated credit without relying on traditional banks or credit scores — a notable shift in Latin America’s evolving digital assets landscape.
What the New Card Offers
Lemon’s new card lets users lock up BTC as collateral instead of selling it. In the initial rollout:
A user deposits 0.01 BTC as a guarantee — roughly USD 900 at current market prices.
In exchange, Lemon issues a credit card in Argentine pesos with a predefined limit of 1 million pesos approximately 680 – 700 US dollars (USD).
The Bitcoin pledged remains immobilized as collateral and is neither converted into local currency nor sold.
Lemon positions this structure as a way for Bitcoin holders to access everyday spending power without liquidating their crypto assets and bypassing traditional credit checks, which can be especially meaningful in Argentina where persistent high inflation—recently around 31% year-on-year—has eroded the peso’s purchasing power for basic goods and services, making access to stable credit an important financial tool for consumers.
Company Rationale and Future Plans
According to Lemon’s founder, Marcelo Cavazzoli, the product is designed as a “simple way to access credit in pesos” using Bitcoin as backing, without the need for a credit history or a bank relationship”. He also described Bitcoin as central to the “new digital economy”.
The company says this launch represents only the first stage of the product. Future iterations may allow users to adjust their collateral amount and corresponding credit limits. Additionally, Lemon is reportedly working to enable dollar-denominated repayments using stablecoins such as USDC or USDT, broadening options for cross-currency spending.
Critical Perspective
The concept of crypto-collateralized credit isn’t new globally, but Lemon’s product is Argentina’s first such card offered at scale. Its design reflects local financial conditions, including persistent inflation and widespread distrust in traditional banking, which have driven crypto adoption for savings and remittances in the country.
However, this model carries inherent risk: users must lock up volatile assets (Bitcoin) as security for borrowing. If BTC value fluctuates sharply, the real credit value or required collateral could shift, potentially straining users’ finances. Lemon’s public communications haven’t detailed how collateral value changes or margin calls would be handled in adverse price conditions.
Furthermore, while bypassing credit histories may expand access for some, it also removes traditional credit risk assessments that can help prevent over-indebtedness.
ClearBank partners with Taurus to build regulated stablecoin infrastructure for clients
ClearBank, a UK-based clearing and embedded banking provider, has entered a strategic agreement with digital asset infrastructure firm Taurus to expand its stablecoin-related services. Under the deal, ClearBank will integrate Taurus-PROTECT, Taurus’s institutional wallet and custody platform, as the core infrastructure supporting secure, compliant digital asset services for its customers.
The collaboration aims to give ClearBank a scalable foundation for managing tokenised value and facilitating regulated stablecoin activity. Taurus-PROTECT is designed for banks and financial institutions and offers secure safekeeping, governance tools and flexible deployment options that align with regulatory expectations.
A key element of the partnership is the planned integration with Circle Mint, Circle’s platform for minting and redeeming MiCAR-compliant stablecoins such as USDC and EURC. ClearBank previously announced plans to join the Circle Payment Network, an initiative intended to enable near-instant global transfers using blockchain rails.
ClearBank has positioned this effort as part of a broader push to complement traditional payment systems with blockchain-based technology. The bank suggests that regulated stablecoins could enhance transaction efficiency and reduce costs in use cases such as corporate payments and international remittances.
Critical Assessment
• Strategic intent: ClearBank’s choice of Taurus reflects a broader trend of incumbent financial institutions seeking specialist digital asset infrastructure to enter the tokenised payments space, rather than developing in-house solutions.
• Regulatory focus: The emphasis on MiCAR-compliant stablecoins underscores the importance of aligning with evolving regulatory frameworks in the UK and EU. ClearBank’s approach appears cautious and compliance-oriented.
• Commercial clarity: The announcement focuses on capability expansion and technology integration but does not disclose commercial terms, timeline to market or specific client offerings, leaving unanswered questions about the pace and scale of adoption.
The ClearBank–Taurus partnership represents a measured step by a regulated bank into stablecoin payment infrastructure. It prioritises security and compliance while aligning with industry initiatives such as Circle’s network, but details on deployment and tangible client benefits remain limited at this stage.
State Street launches tokenized digital-asset suite amid broader institutional crypto adoption
State Street Corporation, a major global custodian and financial services provider, has rolled out a new Digital Asset Platform for institutional clients that supports tokenized financial products such as stablecoins, tokenized deposits, money-market funds and ETFs. As part of this initiative, the firm leverages a longstanding technology partnership with Swiss digital-asset infrastructure provider Taurus SA to enable key custody and tokenization capabilities within the platform.
State Street’s Digital Asset Platform provides wallet management, custody, cash and token issuance services across blockchain networks tailored to institutional needs, including regulated stablecoins and other tokenized instruments designed to operate alongside traditional financial products. This marks a shift from purely back-office roles into offering broader client-facing digital asset services.
State Street’s platform builds on a strategic agreement with Taurus SA signed in August 2024. Under this agreement, State Street has integrated Taurus’ digital asset infrastructure to expand its digital offerings (pending applicable regulatory approvals).
Specifically, State Street is adopting Taurus’ suite of solutions to support institutional-grade digital asset services:
Custody technology (Taurus-PROTECT) for secure storage and asset servicing.
Tokenization tooling (Taurus-CAPITAL) for creation and lifecycle management of tokenized assets.
Blockchain connectivity (Taurus-EXPLORER) to enable interoperability across multiple protocols.
State Street’s leadership has stated that this collaboration underscores its commitment to becoming a leader in digital asset services for institutional investors, with Taurus’ infrastructure enabling much of the underlying technology integration.
Why It Matters
State Street is one of the largest custodians and asset managers in global finance. As of September 2025, it reported approximately $51.7 trillion in assets under custody and/or administration and about $5.4 trillion in assets under management, highlighting the scale and reach of the institution’s client base and influence.
Partnering with Taurus, a specialist in digital asset infrastructure trusted by a range of banks and institutional clients, provides State Street with ready-built technology to support regulated tokenization and custody services — areas where large traditional banks have faced technical and regulatory challenges.
WHAT WE ARE READING (OR WATCHING)
The Stablecoin Standard
This article is for informational purposes only and should not be considered financial advice. Please do your own research or consult a licensed financial advisor before making investment decisions.