Blockchain & Digital Assets Weekly Briefing - Week 52
- danae317
- Dec 26, 2025
- 10 min read
Week ending 26th December 2025
Institutional engagement and regulatory clarity continue to shape the global digital-asset landscape. JPMorgan is reportedly evaluating institutional crypto trading services, signaling sustained demand from traditional finance. At the same time, Russia is moving toward formalizing crypto’s role in its economy—supporting bitcoin mining and outlining plans to legalize regulated retail trading. In the private sector, Coinbase is expanding into prediction markets through a targeted acquisition, while Hong Kong is proposing strict capital rules that would allow insurers limited exposure to crypto assets. Together, these developments highlight a maturing market increasingly defined by regulation, infrastructure, and institutional participation.
JPMorgan’s crypto push continues: bank reportedly exploring institutional crypto trading.
Bitcoin mining is now officially supporting the ruble, says Russia’s central bank.
Russia plans to legalize retail crypto trading under new regulatory framework.
Coinbase acquires The Clearing Company to expand its prediction markets offering.
Hong Kong proposes pioneering insurance rules to allow crypto investment under strict capital requirements.
JPMorgan’s crypto push continues: bank reportedly exploring institutional crypto trading
JPMorgan Chase & Co., the largest U.S. bank by assets, is reportedly considering offering cryptocurrency trading services to its institutional clients, a development that underscores the firm’s ongoing expansion into digital assets and broader integration of crypto into traditional finance.
A Strategic Shift Deeper into Digital Assets
According to multiple reports citing people familiar with the matter, JPMorgan is in internal discussions about potentially offering spot and derivatives trading for cryptocurrencies to institutional clients such as hedge funds, pension funds, and other large investors. These conversations are described as early stage, with no official product launch, list of supported assets, or timeline confirmed.
This consideration reflects a broader trend within major financial institutions to engage more directly with digital assets as client interest and regulatory clarity increase. Traditional banks have been warming up to crypto markets, and JPMorgan’s potential move could place it alongside other firms exploring institutional-grade crypto services — despite historically cautious public stances by its leadership.
Why This Matters
Institutional Demand and Competitive Pressures: Institutional clients have shown interest in diversified exposure to digital assets beyond futures or ETFs, seeking regulated and reliable trading channels through established financial institutions. JPMorgan’s evaluation of crypto trading services appears driven in part by client demand and competitive dynamics.
Early Stage, No Commitment: Reports emphasize that discussions remain preliminary, with the bank still assessing feasibility, regulatory and risk considerations, and client appetite before final decisions are made.
Part of Broader Crypto Strategy: The exploration of trading services occurs alongside other signs that JPMorgan is deepening its crypto foothold — such as plans to allow institutional clients to use Bitcoin and Ethereum as collateral for loans and its historic launch of blockchain-based initiatives like its deposit token.
What This Could Mean for Crypto Markets
If JPMorgan formally enters institutional crypto trading:
It could enhance market access and liquidity for large investors.
It may accelerate mainstream adoption of digital assets within regulated finance.
It might influence other major banks and asset managers to expand their own crypto offerings.
Bitcoin mining is now officially supporting the ruble, says Russia’s central bank
In a notable shift from its historically restrictive stance on cryptocurrencies, the Central Bank of Russia has publicly acknowledged that Bitcoin mining is contributing to ruble stability.
In an interview with RBC, Bank of Russia Governor Elvira Nabiullina stated that mining is “one of the additional factors” behind the ruble’s strong exchange rate, while cautioning that its precise contribution is difficult to quantify and should not be overstated. She also noted that mining activity did not suddenly appear in 2025, implying it cannot fully explain recent exchange-rate dynamics on its own.
This marks the first time Russia’s central bank has openly framed Bitcoin mining as a macroeconomic support factor, rather than purely a financial or regulatory risk.
A/ How Bitcoin Mining Strengthens the Ruble
Bitcoin mining strengthens the ruble through a straightforward and well-understood economic mechanism: it generates foreign-currency inflows that function similarly to export revenues, without requiring physical goods to cross borders.
How the process works in practice
Miners sell nearly all newly mined Bitcoin for foreign currency. Large-scale Russian mining operations typically receive payouts in USD, USDT, or other hard currencies from international mining pools such as AntPool, Foundry, F2Pool, or ViaBTC. Direct conversion into rubles at the point of sale is rare.
Foreign currency flows into the domestic economy. Mining companies must cover local costs—electricity, wages, taxes, equipment—all denominated in rubles.
Foreign currency is sold for rubles on domestic FX markets. To meet these obligations, miners convert dollars or stablecoins into rubles via the Moscow Exchange (MOEX) or over-the-counter markets.
This creates sustained demand for the ruble. Each conversion increases ruble demand while adding foreign currency supply to the market. For example, when a mining operation converts $10 million in earnings into rubles, it mechanically supports the ruble’s exchange rate.
Why this resembles export revenue
Russian authorities treat steady mining-related FX inflows in much the same way as oil and gas export proceeds:
More foreign currency supply
Higher domestic demand for rubles
Fewer rubles required per dollar
From an exchange-rate perspective, the effect is functionally similar, even though no physical commodity leaves the country.
B/ What This Signals for Energy-Rich Countries (Analytical Interpretation)
The Central Bank’s acknowledgment implicitly confirms a broader idea long discussed by economists: Bitcoin mining can act as a channel for converting cheap domestic energy into hard currency.
[This section reflects economic interpretation and extrapolation, not an official position of the Bank of Russia.]
Countries with abundant low-cost electricity—hydropower, stranded gas, excess nuclear or coal capacity—can theoretically use Bitcoin mining as a digital export industry:
Energy is converted into Bitcoin
Bitcoin is sold for USD-denominated assets
USD is sold domestically, supporting the local currency
Unlike traditional exports, this process:
Requires no shipping infrastructure
Is difficult to disrupt through trade sanctions
Operates continuously as long as energy and network access exist
Potential beneficiaries (illustrative, not exhaustive)
Hydro-rich regions: Paraguay, Ethiopia, Laos, Canada, Norway, Iceland, Brazil
Stranded or flared gas producers: Nigeria, Iraq, Iran, Venezuela, Russia
Overbuilt power systems: Kazakhstan, Mongolia, parts of the U.S. and China
Sanctioned or dollar-constrained economies seeking alternative FX inflows
Why policymakers are paying attention
From a strategic standpoint, Bitcoin mining:
Turns surplus energy into a monetizable asset
Creates FX inflows outside traditional trade routes
Reduces reliance on external financing or commodity logistics
However, these advantages depend heavily on regulation, transparency, and scale, and they also introduce risks related to energy allocation, financial oversight, and price volatility.
The Russian Central Bank’s statement does not mean Bitcoin mining is now a cornerstone of monetary policy. But it does confirm something significant: crypto mining has moved from the periphery of Russia’s economy into its balance-of-payments discussion.
That shift alone signals a more pragmatic—and economically grounded—approach to digital assets by one of the world’s most systemically important central banks.
Russia plans to legalize retail crypto trading under new regulatory framework
After acknowledging that Bitcoin mining impacts the ruble, Russia is now moving to broaden its domestic cryptocurrency regulations by allowing ordinary citizens to buy and trade certain digital assets under controlled conditions. This proposal continues the central bank’s cautious approach to integrating digital assets into the financial system while maintaining strict oversight.
What’s Changing
Under the Bank of Russia’s draft regulations, retail investors could purchase widely traded cryptocurrencies — such as Bitcoin — from licensed intermediaries after passing a basic knowledge test. Annual purchases would be capped at 300,000 rubles (about $3,800) per individual through a single intermediary, limiting retail exposure. Qualified investors could still trade larger volumes of most digital assets, excluding anonymous tokens, upon completing a risk-awareness assessment.
This proposal builds on 2025 initiatives that allowed a small group of “especially qualified” investors to engage in digital asset trading under an experimental legal regime lasting three years. Previously, regulated crypto transactions were largely restricted to wealthy investors and financial organisations.
Context: Russia’s Crypto Policy Evolution
Russia has historically maintained a cautious stance toward cryptocurrencies. Cryptos are not recognized as legal tender and cannot be used for domestic payments — only the ruble is valid for that purpose.
Key components of Russia’s tiered approach include:
Experimental Legal Regime (ELR): Launched in 2025, allowing certain investors and businesses to trade crypto under supervision.
Foreign Trade Use: Crypto can be used for limited cross-border transactions, partly as a workaround for international payment restrictions.
Bank Participation and Derivatives: Domestic banks may engage in limited crypto operations, and regulators are exploring crypto-linked derivatives.
The central bank, however, continues to oppose using cryptocurrencies for domestic payments and prioritizes controls to mitigate financial stability and anti-money-laundering risks.
Analysis and Implications
Russia is balancing public interest in digital assets with financial safety. By allowing retail participation under strict limits and educational requirements, the government acknowledges demand while controlling systemic risks. Compared to Western markets like the EU or U.S., Russia’s approach remains more restrictive and state-driven, prioritizing financial stability over liberalized market access.
Legislative implementation is expected by 2026, potentially reshaping how Russians engage with digital assets within legal channels under defined limits.
Coinbase acquires The Clearing Company to expand its prediction markets offering
Coinbase Global Inc. has agreed to purchase The Clearing Company, a startup focused on building infrastructure for prediction markets, as part of a broader strategic shift to deepen its presence in event‑based financial trading. This acquisition, expected to close in January 2026 under customary conditions, reflects Coinbase’s intention to integrate prediction markets into its expanding suite of products.
What Is Happening
Coinbase announced it has reached an agreement to acquire The Clearing Company, which specializes in on‑chain prediction‑market infrastructure. The terms of the deal have not been publicly disclosed.
The acquisition follows Coinbase’s recent launch of prediction markets and equities trading on its platform, aligning with its vision to become an “Everything Exchange” offering a wide range of trading products beyond cryptocurrency.
Why This Matters
Prediction markets are financial instruments where traders buy and sell contracts based on the outcome of future events, such as elections, economic data releases, or sports results. These markets are gaining attention for their potential use in price discovery and risk management, but they also sit at the intersection of financial innovation and regulatory complexity.
The Clearing Company is a relatively new entrant in this space, founded by Toni Gemayel, who previously held leadership roles at Polymarket and Kalshi—two prominent prediction‑market platforms. Investors in The Clearing Company’s $15 million seed round included Coinbase Ventures, highlighting an existing strategic relationship prior to this acquisition.
Strategic Rationale and Expansion Goals
For Coinbase:
Talent and expertise: The deal brings in a team with domain experience in regulated and on‑chain market models, potentially accelerating product development.
Product diversification: Prediction markets enhance Coinbase’s portfolio alongside crypto trading, derivatives, and stocks, aiming to increase user engagement and transaction volume across asset classes.
Regulatory positioning: The Clearing Company has applied for a clearinghouse designation with the U.S. Commodity Futures Trading Commission (CFTC), which could help Coinbase build compliant market infrastructure.
This move comes as Coinbase faces legal and regulatory debates over how prediction markets should be regulated—issues that have already prompted lawsuits by Coinbase and other firms challenging state gambling classifications in favor of federal derivatives oversight.
Potential Impact and Industry Context
The acquisition underscores a trend among major fintech and crypto firms to explore event‑based trading systems as a growth area. Critics of prediction markets point to concerns about their resemblance to gambling, operational risks, and the potential for manipulation. Supporters argue they can aggregate diverse information efficiently to forecast real‑world outcomes.
For Coinbase, strengthening its prediction market capabilities could:
Attract new user segments interested in speculative event contracts.
Reduce reliance on core cryptocurrency trading revenues by broadening services.
Position the company competitively against other platforms entering similar markets, such as Robinhood and Kalshi.
Hong Kong proposes pioneering insurance rules to allow crypto investment under strict capital requirements
According to a Bloomberg report, Hong Kong’s insurance regulator has unveiled a draft proposal that, for the first time in the region, outlines how insurers could hold and invest in cryptocurrency and infrastructure assets, signalling a major shift in the territory’s approach to digital finance.
The Insurance Authority of Hong Kong is consulting on new risk‑based capital rules that would integrate digital assets into insurers’ balance‑sheet frameworks. Under the draft, direct holdings of cryptocurrencies would face a 100 % risk charge, meaning insurers must hold capital equal to the full value of any crypto exposure — a design intended to reflect the high volatility and risk profile of these assets.
The proposal differentiates stablecoins from other digital assets by tying capital requirements to the fiat currency they are pegged to, but only if those stablecoins are regulated within Hong Kong. This approach acknowledges varying levels of risk among tokens and aims at integrating digital assets into a regulated framework.
Alongside crypto, the draft includes capital incentives for infrastructure investment, particularly in projects linked to Hong Kong or mainland China, such as large‑scale urban development plans. These incentives could make infrastructure a more attractive asset class for insurers’ long‑term portfolios, aligning insurance capital more closely with regional economic priorities.
Officials have stated that the proposal is part of a broader review of the risk‑based capital regime, with the aim of supporting the insurance industry and contributing to wider economic development. A public consultation period is scheduled from February through April 2026, after which the framework may be revised and forwarded to the legislature.
While insurers would gain a clearer regulatory pathway to hold crypto, the 100 % risk charge makes such exposure capital‑intensive and potentially unappealing for many firms. The framework thus appears designed to balance institutional access to digital assets with prudential safeguards, rather than to encourage large‑scale crypto adoption by the sector.
This regulatory initiative comes as part of Hong Kong’s wider strategy to position itself as a leading digital finance hub in Asia, building on existing stablecoin licensing regimes and other measures to broaden the city’s fintech infrastructure.
Overall, the proposal reflects an attempt by regulators to integrate emerging asset classes into traditional financial systems while maintaining a cautious stance on risk and capital adequacy.
WHAT WE ARE READING (OR WATCHING)
The Stablecoin Standard
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On the Launchpad
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Crypto on the Balance Sheet
Saylor’s Strategy Raises Reserve, Pauses Bitcoin Purchases
Beyond the Chain
Crypto laments loss of key ally on Capitol Hill after Lummis announces retirement
Crypto.com Hiring Sports Market Maker to Trade Against Customers
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.
