Blockchain & Digital Assets Weekly Briefing - Week 5
- danae317
- 2 hours ago
- 10 min read
Week ending 30th January 2026
This week’s Digital Assets newsletter tracks major regulatory and institutional milestones, including Fidelity preparing a digital dollar stablecoin for retail and institutional investors, Laser Digital pursuing a U.S. national trust bank charter alongside expanded Bitcoin yield offerings, and the UAE Central Bank approving its first regulated USD stablecoin for institutional settlement. The issue also covers Tether’s launch of a federally regulated USA₮ stablecoin for institutional use in the United States, and Russia’s move to open regulated Bitcoin trading to all investors starting in July.
Fidelity to launch digital dollar stablecoin for retail and institutional investors.
Laser Digital seeks U.S. National Trust Bank Charter while expanding Bitcoin yield product suite.
UAE central bank approves first regulated USD-stablecoin for institutional settlement.
Tether launches federally regulated USAT stablecoin for institutional use in the U.S..
Russia set to open bitcoin trading to all investors this July under regulated regime.
Fidelity to launch digital dollar stablecoin for retail and institutional investors
Fidelity Investments is preparing to introduce its first stablecoin, named the Fidelity Digital Dollar (FIDD), expanding its digital asset product lineup to include a blockchain-based token pegged to the U.S. dollar. The announcement marks a major move by one of the world’s largest asset managers into on-chain financial infrastructure.
According to Fidelity’s press release, FIDD will be issued by Fidelity Digital Assets, National Association and is planned for launch in the “coming weeks,” with availability to both retail and institutional clients. The token will be redeemable for one U.S. dollar and purchasable on Fidelity’s own platforms — Fidelity Digital Assets, Fidelity Crypto, and Fidelity Crypto for Wealth Managers — as well as on external cryptocurrency exchanges where it is listed. Holders will be able to transfer FIDD to any eligible Ethereum mainnet address.
Fidelity states that FIDD will be backed by institutional-grade reserve asset management overseen by Fidelity Management & Research Company LLC, combining the stability of traditional U.S. dollars with blockchain technology. The firm emphasises its decade-long research and digital asset expertise as foundational to the offering. Daily disclosures of FIDD’s circulating supply and net asset value are planned to support transparency.
Context and Industry Implications
The stablecoin launch comes amid significant regulatory progress in the United States, including the passage of the GENIUS Act, a federal framework that requires full reserve backing and audit standards for stablecoin issuers. This has encouraged traditional financial institutions to enter the stablecoin market with better-defined compliance obligations.
Fidelity’s entry reflects broader momentum: stablecoins represent a rapidly growing segment of the digital asset ecosystem, with total market capitalisation exceeding $316 billion (on the 28/01/2026), and are increasingly used for digital payments, settlements and liquidity operations. Institutions such as banks and asset managers are balancing innovation with regulatory and operational risk considerations as they build out on-chain financial infrastructure.
Critical Considerations
While the launch positions Fidelity as one of the first major traditional financial firms to issue its own stablecoin, several factors merit scrutiny:
Regulatory uncertainty outside the U.S.: Fidelity’s stablecoin framework is based on U.S. regulation; it is unclear how equivalent rules in other jurisdictions may affect adoption or cross-border use.
Market competition and adoption: FIDD will enter a crowded market of established stablecoins such as USDC and USDT, which already have deep liquidity and ecosystem support.
Overall, Fidelity’s stablecoin launch represents a strategic extension of its digital asset offerings, combining traditional asset management with blockchain capabilities under a regulated framework. The success of FIDD will likely depend on user trust, regulatory clarity beyond U.S. borders, and competitive positioning within the broader digital asset landscape.
Laser Digital seeks U.S. national trust bank charter while expanding bitcoin yield product suite
Laser Digital, the institutional digital asset unit backed by Nomura, Japan's largest investment fund, has filed an application with the office of the comptroller of the currency (OCC), according to their press release, to establish a federally regulated national trust bank in the United States focused on digital asset custody, integrated spot trading and staking services for institutional clients. This move marks a significant step toward regulated on-shore crypto infrastructure at a federal level, potentially reducing reliance on a patchwork of state-by-state custody licenses and addressing institutional demand for regulated digital asset services. If approved, the proposed Laser Digital National Trust Bank (LDNTB) would offer custody of digital assets and U.S. government securities, spot trading of crypto and fiat currencies, and staking of eligible custodied assets, though it currently does not plan to accept deposits or trade other securities.
This application places Laser Digital in a broader context of digital asset firms pursuing U.S. federal charters — a trend that has accelerated recently with several nonbank crypto entities seeking OCC approval to operate under nationally recognised trust bank structures, a shift that reflects changing regulatory attitudes toward digital assets in the United States.
Institutional Bitcoin yield fund recap
Last week, Laser Digital also expanded its institutional product suite with the Bitcoin diversified yield fund sp (BDYF), a natively tokenised institutional fund that combines long-only Bitcoin exposure with diversified market-neutral trading strategies, such as arbitrage, lending and options, with the explicit goal of generating yield in addition to price performance. The fund is structured on a tokenised basis rather than solely through feeder vehicles, and targets additional returns beyond spot bitcoin performance, though this is dependent on market conditions and is not guaranteed. BDYF is custodied by a regulated provider and available to accredited institutional investors outside the United States under minimum investment requirements.
Analysis and implications
If the OCC charter is granted, Laser Digital would strengthen its position as a regulated institutional infrastructure provider in the U.S., enabling nationwide digital asset custody and trading services under a single federal authority. This could enhance appeal to institutions seeking bank-supervised custody and trading channels rather than relying on fragmented state licensing regimes. That said, approval processes for national trust banks are rigorous, often involving multiple phases of regulatory review, and even conditional approvals require firms to demonstrate robust capital, governance and compliance frameworks before full operational authorisation.
At the same time, diversification into tokenised yield products — while innovative in combining active return strategies with core Bitcoin exposure — introduces execution complexity and risks distinct from passive Bitcoin holding. Institutional uptake will depend on clarity around performance outcomes, risk controls and the evolving regulatory landscape for tokenised fund structures.
UAE central bank approves first regulated USD-stablecoin for institutional settlement
On 29 January 2026, Universal Digital International Limited announced the launch of USDU, the first U.S. dollar-backed stablecoin formally registered under the Central Bank framework of the United Arab Emirates (UAE). The token has been registered by the Central Bank of the UAE as a Foreign Payment Token under the Payment Token Services Regulation (PTSR), a regulatory regime that defines how payment tokens can operate within the country’s financial system.
Under this regulatory framework, digital asset and digital derivative settlements in the UAE must be conducted either in fiat currency or in a token registered as a Foreign Payment Token. Because USDU is currently the only stablecoin registered under PTSR (as a Foreign Payment Token), it offers a compliant option for institutions to settle digital asset transactions within the UAE regulatory perimeter.
What USDU is and how it works
Usdu is pegged 1:1 to the U.S. dollar, with reserves held in safeguarded onshore accounts at major UAE banks including Emirates NBD and Mashreq, supported by Mbank as a strategic corporate banking partner. The reserves are independently attested on a monthly basis, a practice aimed at transparency and aligned with emerging global standards for regulated stablecoins.
The stablecoin is issued by Universal, which is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market. Universal’s registration with the Central Bank as a Foreign Payment Token Issuer makes it unique among stablecoins in the UAE context.
Regulatory and market context
By placing explicit Central Bank oversight at the core of USDU's regulatory status, the UAE aims to build regulated digital asset infrastructure with institutional credibility. This stands in contrast to other popular stablecoins such as USDC or USDT, which are widely used globally but are not registered under the UAE’s PTSR framework, meaning they do not automatically satisfy the formal settlement requirements in the UAE.
The UAE’s approach reflects a broader regulatory strategy: allowing privately issued stablecoins to operate under strict Central Bank oversight rather than leaving them solely in unregulated or sandbox contexts. This positions the UAE among a small set of jurisdictions that have defined clear regulatory pathways for dollar-denominated stablecoins.
Key considerations and limitations
Institutional focus: USDU is designed for professional and institutional clients, not general retail payment use in the broader UAE economy; domestic payment use cases remain limited under the PTSR rules.
Reserve backing and transparency: Monthly third-party attestations and onshore reserve storage aim to address common stablecoin criticisms around reserve opacity, though these practices do not eliminate all systemic risks.
Regulatory sandbox vs full regime: While Central Bank registration is significant, the long-term adoption and integration of USDU depend on how financial institutions incorporate it into settlement workflows and whether similar frameworks emerge in other major markets.
In summary, the launch of USDU under formal Central Bank regulation is a milestone in the UAE’s digital asset regulatory evolution, creating a legally compliant dollar-denominated settlement instrument for institutional digital finance. Its broader impact will be determined by market uptake, integration with existing financial systems, and how other jurisdictions respond to stablecoin regulation.
Tether launches federally regulated USA₮ stablecoin for institutional use in the U.S..
On 27 January 2026, Tether, the issuer of the widely used stablecoin USDt, formally launched USA₮, a new federally regulated stablecoin designed for the U.S. market under the federal stablecoin framework created by the GENIUS Act. The token begins trading with an initial supply of $10 million as an ERC-20 token on the Ethereum blockchain, compliant with the U.S. law’s requirements for reserve backing and oversight.
The stablecoin is issued by Anchorage Digital Bank, N.A., the first nationally chartered digital asset bank in the United States, and backed by dollar-denominated reserves. Cantor Fitzgerald serves as the designated reserve custodian and preferred primary dealer, responsible for holding and overseeing the assets backing USA₮.
Following the announcement, USA₮ became available for trading immediately on major crypto platforms including Bybit, Crypto.com, Kraken, OKX and MoonPay, broadening market access to institutions and platforms that support regulated stablecoins.
Strategic intent and market positioning
The launch of USA₮ reflects Tether’s effort to create a stablecoin that complies with newly enacted U.S. federal regulation, addressing limitations that its flagship USDt faces in the American market due to regulatory restrictions. While USA₮ targets institutional and domestic use, USDt continues to operate globally outside the GENIUS Act regime.
USA₮’s design aims to meet institutional demand for a dollar-backed token within a regulated framework, with governance, transparency and reserve custody structured to align with U.S. regulatory expectations. Bo Hines, appointed CEO of Tether USA₮, previously served as a crypto policy advisor to the White House before leading this U.S. initiative.
Critical considerations
Although the launch introduces a regulated stablecoin alternative for U.S. institutions, its initial market capitalization is modest relative to existing large stablecoins such as USDt and rivals like USDC. Adoption will depend on how quickly regulated entities and platforms integrate USA₮ and on the transparency and liquidity of its reserve backing under ongoing regulatory scrutiny.
By positioning USA₮ within federally supervised frameworks, Tether seeks to enhance legitimacy and compete directly with other regulated dollar tokens, yet it must demonstrate compliance and utility to gain traction in a competitive and evolving market.
Russia set to open Bitcoin trading to all investors this July under regulated regime
Russia’s government is preparing legislation that would allow private individuals, including both qualified and ordinary investors, to buy and sell Bitcoin and other cryptocurrencies within a regulated legal framework, with different rules depending on investor experience and risk tolerance. This initiative reflects a shift in policy by the Central Bank and Parliament to formally recognise cryptocurrency as an investable asset, while continuing to ban its use as a domestic means of payment and emphasising regulatory controls.
Under the draft framework developed by the Bank of Russia and discussed in the State Duma, new rules are expected to be codified by the end of June 2026, with enforcement and liabilities for unlicensed intermediaries to follow from 1st July 2027.
Key elements of the proposed regulatory approach
• Investor categories and limits: Both “qualified” and “non-qualified” retail investors would be permitted to acquire crypto assets. Non-qualified investors are likely to face annual limits on investment amounts (in practice proposed at 300 000 rubles per year through a single intermediary) and required testing to assess understanding of risks. Qualified investors would also be tested but could trade a broader range of crypto assets with fewer restrictions, excluding certain privacy-focused tokens that hinder anti-money-laundering checks.
• Regulated intermediaries: Trading and custody of cryptocurrencies would be conducted through licensed brokers, exchanges, and custodians. Unlicensed operators, including exchange services and “off-the-books” intermediaries, would face administrative or even criminal penalties for illegal activity, aligning enforcement with existing rules for unlicensed banking.
• Status of crypto assets: Digital currencies and stablecoins would be legally defined as financial assets that can be bought and sold, but they would remain prohibited for payments within Russia. Stablecoins like Tether could, according to expert commentary, serve as tools for external economic transactions for companies.
Analysis and context
Russia has long maintained a cautious stance toward cryptocurrency. The Central Bank previously opposed widespread use of cryptocurrencies, warning of volatility and systemic risks, and domestic payment with crypto remains banned. Recent legislative changes have legalised mining and allowed limited corporate use in international trade, illustrating a gradual shift toward regulated engagement with digital assets.
Opening access for ordinary investors represents a significant policy evolution. Proponents argue that it could broaden investment options and align Russian regulation with practices in other major economies. Critics caution that high price volatility, unclear investor protections, and persistent legal restrictions on usage could expose unsophisticated investors to losses. Furthermore, regulatory details such as precise investment caps, licensing requirements, and taxation remain fluid until formal statutes are adopted.
The legislative timetable suggests the first reading of a comprehensive crypto law could occur in the State Duma within weeks, but full enactment and enforcement will take longer, with most provisions not in effect until mid-2027.
WHAT WE ARE READING (OR WATCHING)
The Stablecoin Standard
Russia-Linked Stablecoin’s Transactions Top $100 Billion in Year
Stablecoins seen as ‘the default’ for payments as OKX brings crypto card to Europe
Governance Watch
Russian crypto regulation set for July rollout, says top lawmaker
The Onboarding Wave
UBS Plans to Offer Crypto Trading for Some Wealthy Clients
The Nakamoto Engine
Bitcoin Mining Faces Weather Shock as Winter Storm Fernan Knocks Out Major Pools Across the US
Nomura-backed Laser Digital introduces tokenized bitcoin yield-bearing fund
The Global Pulse
Trump nominates Federal Reserve critic Kevin Warsh to run US central bank
Beyond the Chain
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.
