Blockchain & Digital Assets Weekly Briefing - Week 49
- danae317
- 2 days ago
- 11 min read
Week ending 5th December 2025
Welcome to this week’s edition — we’re witnessing a pivotal moment in digital assets. Vanguard is reshaping institutional access to crypto-ETFs under new leadership, while Bank of America is advising wealthy clients to allocate up to 4 % of their portfolios to cryptocurrency. Sony is moving quickly in Web3, introducing a stablecoin on its Soneium blockchain while preparing a USD-based token for PlayStation and anime services. In the UK, crypto and digital assets are now legally recognized as property — giving users real ownership and legal protections. Meanwhile in the U.S., the CFTC has approved futures exchanges to offer spot crypto trading on regulated markets.
Get ready: digital assets are entering a new phase of integration, regulation, and opportunity.
Vanguard swings wide: the firm’s new CEO ushers in crypto-ETF access for clients.
Bank of America now recommends up to 4% crypto allocation for its wealth clients.
Sony’s stablecoin push expands from its L2 to its games and media empire.
UK law now treats crypto and digital assets as property — giving users real legal ownership and protections.
CFTC lets futures-exchanges offer spot crypto on regulated markets.
Vanguard swings wide: the firm’s new CEO ushers in crypto-ETF access for clients
The asset manager Vanguard — once one of the staunchest opponents of cryptocurrencies among major institutional firms — has reversed course. As of Tuesday, Vanguard began allowing its U.S. brokerage clients to trade third-party ETFs and mutual funds that hold cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP and Solana (SOL).
Why this pivot — and what triggered it
The decision culminates more than a year after Vanguard appointed Salim Ramji as CEO in July 2024. Ramji is a former executive at BlackRock who previously led its global ETF business and oversaw the launch of a major spot-Bitcoin ETF.
Under its former leadership, Vanguard had refused to provide access to crypto ETFs — citing volatility and the belief that cryptocurrencies were “too speculative”.
According to Vanguard, the shift reflects matured market infrastructure for crypto-linked funds, improved liquidity, regulatory comfort, and growing demand from both retail and institutional investors.
What’s changing — and what remains unchanged
Vanguard U.S. customers (some 50+ million globally, with most of them based in North America) can now trade third-party crypto ETFs or mutual funds that meet regulatory standards — effectively opening a traditional finance broker pipeline to digital-asset exposure.
However, Vanguard is not launching its own crypto funds. The firm says it will treat crypto ETFs similarly to other “non-core” assets (like gold), and it will continue to exclude funds tied to highly speculative tokens or “meme coins.”
"When it comes to investment products we create, our posture has not changed; we focus on products that generate cash flow in a transparent way, such as interest payments and dividends. [...] This approach is consistent with our long-standing policy: for example, gold funds are available on our brokerage platform, but we have never offered a gold ETF." Vanguard announcement
The shift appears more pragmatic than ideological: rather than endorsing crypto as a core investment, Vanguard seems to acknowledge client demand and competitive pressure from other asset managers.
Implications for investors — and for crypto’s relationship with traditional finance
For many Vanguard clients — often conservative, long-term investors — this change offers a regulated, familiar path into digital-asset exposure: via ETFs rather than direct coin holdings.
For the broader crypto industry and markets, Vanguard’s reversal marks a symbolic — and practical — milestone: a legacy behemoth now endorses the legitimacy of regulated crypto funds. That could help channel more institutional capital into crypto, and reassure financial advisers who were previously wary.
Still, Vanguard’s caution remains evident: no in-house crypto products, no high-risk altcoins — and the firm continues to warn of crypto’s speculative nature (especially in the context of long-term retirement plans).
Bank of America now recommends up to 4% crypto allocation for its wealth clients
Bank of America (BofA), one of the largest U.S. banks, has officially changed course on digital assets, according to Yahoo Finance: it now urges eligible clients to consider allocating between 1% and 4% of their investment portfolios to cryptocurrencies — or more precisely, crypto-linked exchange-traded funds (ETFs).
What’s new — and why it matters
For the first time, BofA’s advisory arms — including Merrill Lynch, Bank of America Private Bank and Merrill Edge — will actively recommend regulated crypto exposure, starting January 5, 2026.
The bank plans to cover four major spot-Bitcoin ETFs: Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Mini Trust (BTC), and BlackRock iShares Bitcoin Trust (IBIT). Through these vehicles, clients gain crypto exposure without holding tokens directly, under regulated and familiar frameworks.
According to Chris Hyzy, BofA’s Chief Investment Officer for the Private Bank, such allocations might suit investors drawn to “thematic innovation” and who accept the “elevated volatility” inherent to digital assets.
The shift at Bank of America (BofA) is part of a much broader movement in traditional finance toward crypto adoption. For example, Morgan Stanley recently proposed a 2 %–4 % crypto allocation for “opportunistic” portfolios. Meanwhile, BlackRock has suggested a more modest 1 %–2 % exposure via its Bitcoin ETF. Fidelity Investments has set a 2 %–5 % allocation range—and even up to 7.5 % for younger investors.
On top of that, Vanguard lifted its longstanding ban on cryptocurrency funds on Monday, allowing some of its clients to access crypto-linked ETFs and mutual funds — a major reversal. Other institutions such as Charles Schwab, JPMorgan Chase, and even fintech platforms such as SoFi have also begun offering crypto-linked products or ETF access.
In this context, BofA’s update — which gives 15,000+ advisers the ability to proactively recommend regulated crypto products to clients for the first time — doesn’t stand alone. Rather, it reflects a wider “Wall Street consensus” forming around modest, regulated crypto allocations as a legitimate component of diversified investment strategies.
What this implies for investors and the broader market
Mainstreaming of crypto: When a major bank like BofA integrates crypto into standard wealth products, it helps further legitimize digital assets in the eyes of both retail and institutional investors.
Controlled participation: The 1–4% range offers a way for wealth clients to gain exposure while limiting downside — a middle ground between full adoption and outright avoidance.
Growing competition: As more large institutions offer regulated crypto access, investor options diversify; this could accelerate inflows into bitcoin-linked funds and other digital-asset products.
Sony’s stablecoin push expands from its L2 to its games and media empire
Startale Group — the blockchain partner of Sony — has just launched Startale USD (USDSC), an institutional‑grade U.S. dollar–pegged stablecoin on the Sony’s Ethereum layer‑2 network Soneium. Meanwhile, Sony’s banking arm — Sony Bank — has confirmed plans to issue its own USD stablecoin as soon as 2026 to enable crypto payments across its mainstream entertainment platforms such as PlayStation and anime/streaming services, Japan’s popular media outlet Nikkei reported.
How is Startale linked to Sony?
Startale is Sony’s blockchain partner. Specifically:
Soneium Network: Startale develops and operates applications and infrastructure on Soneium, which is Sony’s Ethereum Layer‑2 blockchain. This includes the Startale App and the Startale USD (USDSC) stablecoin.
Corporate Partnership: While Startale is an independent company, it collaborates closely with Sony to integrate blockchain solutions into Sony’s ecosystem — particularly for digital payments, rewards, and Web3 experiments tied to gaming, streaming, and digital content.
Ecosystem Alignment: Startale’s projects on Soneium are effectively part of Sony’s broader Web3 strategy, providing Sony with blockchain capabilities without Sony directly issuing or managing those assets.
What’s Changing: Two Parallel Stablecoin Strategies
A/ Soneium’s New Reality — USDSC Is Live
On December 3, 2025, Startale launched USDSC on Soneium, establishing it as the default settlement currency for payments, transactions, and rewards within the Web3 ecosystem built around Soneium.
The stablecoin is built using infrastructure from M0, a modular stablecoin‑issuance platform.
Launch of USDSC was paired with a native incentive system — STAR Points — rewarding users for interacting with the ecosystem (minting/holding USDSC, using liquidity pools, engaging with apps via the Startale App).
According to Startale’s leadership, USDSC is meant to “power everything in the Startale App,” from payments and transfers to yields — essentially functioning as Soneium’s native digital dollar.
B/ Sony Bank’s 2026 USD‑Stablecoin for Mainstream Consumers
Separately, Sony Bank is preparing to issue its own USD‑pegged stablecoin, aiming for a rollout by fiscal 2026. This token is meant for use across Sony’s “traditional” digital entertainment ecosystem — games, subscriptions, digital content (anime, streaming, etc.).
The stablecoin would allow users to pay for content on PlayStation, anime streaming, and related services — offering an alternative to credit‑card payments or fiat transactions.
To facilitate this, Sony Bank applied for a U.S. national trust‑bank charter via a subsidiary, Connectia Trust, National Association (“Trust Bank”). Trust Bank will handle the stablecoin issuance.
For regulatory compliance and infrastructure, Sony Bank has partnered with Bastion, a U.S.–based stablecoin‑infrastructure provider. Bastion will handle reserve management, custody, and compliance.
The goal is twofold: reduce credit‑card processing fees, and create a smoother payments experience for Sony’s global user base (notably U.S. customers, who represent a substantial share of Sony’s sales).
What This Could Signal for Web3, Gaming & Digital Payments
If successful, Sony’s dual‑path stablecoin strategy could make it one of the first major entertainment conglomerates to integrate blockchain-native payment rails deeply — combining traditional platforms (PlayStation, streaming) with a Web3‑native “super app.” That could accelerate mainstream stablecoin use.
For the Web3 ecosystem: USDSC + Soneium might lower barriers for developers, creators and users to experiment with tokenised assets, rewards, in‑game marketplaces or NFT‑type content — backed by a trusted corporate issuer rather than speculative tokens.
For Sony’s business model: reducing third‑party payment fees, gaining control over payments infrastructure, and potentially unlocking new monetisation channels (microtransactions, subscriptions, cross-border payments) could drive cost efficiency.
For stablecoin regulation & market structure: Sony’s move could test how regulated, corporate‑issued stablecoins coexist with “open‑market” stablecoins (like USDC, USDT). Success or failure may set a precedent for other large consumer brands considering similar strategies.
UK law now treats crypto and digital assets as property — giving users real legal ownership and protections
The Property (Digital Assets etc) Act 2025 — recently granted royal assent — formally recognises certain digital assets (like cryptocurrencies and tokens) as a new type of personal property under UK law.
What the new law does
The Act creates a third category of personal property, alongside traditional “things in possession” (e.g., physical items) and “things in action” (e.g., debts or contractual rights). Digital assets — which can’t be physically possessed, nor always described as contractual rights — now clearly qualify under this new category.
It does not define a definitive list of what counts as a “digital asset.” Instead, whether a given crypto-token or digital item qualifies will be determined by courts on a case-by-case basis, using existing common-law tests for property.
The law applies across England, Wales and Northern Ireland.
The classical “common-law tests for property”Under English common law — and recently invoked in discussions around digital assets — a right or item will generally be regarded as property if it meets a set of characteristics (often called “indicia of property”). These were famously articulated by Lord Wilberforce in the case National Provincial Bank v Ainsworth [1965]. According to that test, a potential property interest should be:
If a right or object satisfies these characteristics, courts under common law may recognise it as “property” (personal property) even if it does not fit neatly within traditional categories like “physical object” or “chose in action” (e.g. contractual rights). Why these “tests” remain relevant for new asset-types (e.g. crypto, digital assets)With the rise of digital and token-based assets — which often don’t behave like traditional physical property — these common-law tests provide a flexible framework for courts to decide whether to treat such assets as property. That is one of the reasons behind the adoption of measures like Property (Digital Assets etc) Act 2025 which expressly allows things “digital or electronic in nature” to be considered for personal property status, leaving determination of eligibility to these existing common-law criteria. In practice, for example: courts in recent years have applied these tests to treat certain cryptocurrencies as property — enabling legal remedies (injunctions, freezing orders) in cases of theft or fraud. Limitations and judicial discretion
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Why it matters — and what changes for holders
A/ Legal clarity and stronger rights
Crypto holders now have statutory confirmation of ownership — not merely an argument in court. This makes it easier to recover stolen assets, resolve disputes, or prove legitimate ownership.
Digital assets can be handled more like traditional property in estate planning, inheritance or insolvency proceedings, reducing uncertainty for executors, heirs or creditors.
B/ Legal and regulatory consistency
By embedding the change in statute rather than relying on ad-hoc court decisions, the UK removes ambiguity over whether and when crypto counts as property — a question that had been debated for years under common law.
For institutions, businesses and service providers, this means a firmer legal foundation to develop custody, lending, insolvency-related or estate-planning products around digital assets.
What this means for the UK crypto landscape
The passage of the Property (Digital Assets etc) Act 2025 marks a landmark shift in UK regulation of digital assets. By giving crypto a clear legal status as property, the law addresses one of the primary obstacles to mainstream adoption — legal uncertainty.
For investors, service providers, and institutions, this should boost confidence in long-term holdings, custody solutions, estate planning and potential financial-product development around crypto, NFTs or other digital assets.
At the same time, because the law leaves room for judicial interpretation, the full consequences — especially for complex or novel assets — will become clearer only over time, as courts weigh in.
CFTC lets futures-exchanges offer spot crypto on regulated markets
On December 4 2025, the Commodity Futures Trading Commission (CFTC) announced that “listed spot” cryptocurrency products may begin trading on U.S. futures exchanges registered with the agency — a landmark shift in how crypto can be traded onshore.
What changed
Under new CFTC guidance, spot-crypto (e.g. Bitcoin, Ether) can be offered on “Designated Contract Markets” (DCMs) — i.e. traditional futures/commodities exchanges — under full federal oversight.
This is the first time spot crypto products will trade in a U.S. venue subject to the same market-integrity rules, clearing, settlement and regulatory safeguards that apply to other commodities and derivatives.
Shortly after the CFTC decision, Bitnomial — via its subsidiary exchange Bitnomial Exchange, LLC — plans to launch (on December 8, 2025) the first U.S. spot-crypto market under CFTC regulation, offering both leveraged and non-leveraged spot trading.
What this means: institutional-grade infrastructure for spot crypto
By allowing spot-crypto trading on regulated commodity exchanges, the CFTC extends to crypto many of the features long standard in traditional markets — including:
Centralized clearing and settlement via a Derivatives Clearing Organization (DCO), reducing counterparty risk.
Standardized market-surveillance, record-keeping and risk-management rules that apply equally to all participants, retail and institutional.
Equal access to liquidity, fair routing and transparent execution — features that tend to attract institutional investors accustomed to regulated financial markets.
For ordinary investors, this framework may offer greater transparency and legal clarity compared with many existing crypto-native exchanges that operate under state-level licences or less formal regulatory regimes.
WHAT WE ARE READING (OR WATCHING)
The Nakamoto Engine
BlackRock C.E.O. Calls Bitcoin an ‘Asset of Fear’
The Tokenized Economy
Amundi tokenises its first fund in collaboration with CACEIS on Ethereum
The Global Pulse
Bessent says Federal Reserve Board could 'veto' future regional presidents
Bessent Under Discussion to Also Lead National Economic Council
Reform Eclipses Labour, Tories With Crypto Backer’s Record Gift
Inside India's Wave of 'Digital Arrests' — Text VersionNobel Winner Warns China Is ‘Nanoseconds’ Behind in Quantum Race
Beyond the Chain
Big Banks Partnering With Coinbase on Crypto Pilots, CEO Says
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.
