Blockchain & Digital Assets Weekly Briefing - Week 9
- Feb 27
- 10 min read
Updated: 10 hours ago
Week ending 27h February 2026
Digital assets are converging with energy, regulation, and Big Tech. Engie is weighing Bitcoin mining at Brazil’s largest solar plant, while the UK tightens retail access to crypto ETNs. The SEC clears WisdomTree’s 24/7 tokenized fund, the FCA pilots stablecoins with firms including Revolut, and Meta tests stablecoin payments.
Engie weighs Bitcoin mining and storage to boost economics of Brazil’s largest solar plant.
UK ends tax-advantaged crypto ETN purchases in ISAs after regulatory reclassification.
SEC clears WisdomTree to let its tokenized money-market fund trade and settle 24/7.
UK’s FCA to test stablecoin innovation with four selected firms including Revolut.
Meta begins testing stablecoin payments across its social platforms.
Engie weighs Bitcoin mining and storage to boost economics of Brazil’s largest solar plant
French energy giant Engie SA, a major global power utility with about 98,000 employees and a strategic focus on low-carbon generation, is exploring unconventional methods to improve returns at its newly commissioned Assú Sol solar complex in Brazil, according to a Reuters report.
Assú Sol’s Scale and Early Operations
Engie’s Assú Sol project, located in the northeastern state of Rio Grande do Norte, is the company’s largest solar installation worldwide, with an installed capacity of 895 megawatt-peak (MWp). The plant began full commercial operations in February 2026 after a multi-year construction process backed by approximately BRL 3.3 billion in investment and spanning more than 2,300 hectares of photovoltaic modules.
Despite its size and potential, Assú Sol — like many other renewable plants in Brazil — is facing a structural challenge: grid curtailment. This occurs when the national grid cannot absorb all of the electricity produced, forcing output reductions and leaving a significant portion of clean energy unused and un-monetized. Curtailments have become widespread in the Brazilian renewable sector since 2023, driven by rapid solar and wind additions, limited transmission infrastructure, and comparatively slow growth in local electricity demand, resulting in multi-billion-reais losses across the industry.
Engie’s Proposed Solutions: Storage and Bitcoin Mining
To address this challenge, Engie’s Brazil country manager, Eduardo Sattamini, has signaled that the company is evaluating on-site energy storage systems or data centers dedicated to Bitcoin mining at Assú Sol. Such assets could act as local energy offtakers, absorbing electricity that would otherwise be curtailed and converting it into economic value instead of letting it go to waste.
Battery storage would allow the plant to retain excess electricity for later use or sale, potentially smoothing revenue volatility and offering more flexibility in how and when energy enters the grid.
Bitcoin mining operations would consume electricity around the clock, turning stranded renewable generation into a continuous, monetizable service — though not immediate, as implementing either option is expected to take several years.
Importantly, Engie has underscored that these ideas are still in assessment and represent mid- to long-term solutions, not near-term fixes scheduled for immediate deployment.
Broader Context: Renewables, Grid Constraints, and Market Innovation
Brazil’s renewable energy boom has outpaced the country’s grid infrastructure expansion. Even as solar and wind generation contributes a growing share of total electricity supply, transmission bottlenecks and limited demand flexibility mean that surplus clean power often cannot be fully utilized.
Engie’s approach in Brazil reflects a broader trend among energy producers worldwide to explore demand-side solutions — including storage and flexible industrial loads — that help integrate increasing amounts of variable renewable power. By considering Bitcoin mining, Engie enters a space traditionally seen as separate from mainstream utilities, treating crypto mining not as a speculative venture but as a potentially responsive load to enhance grid utilization and plant profitability.
Engie’s exploration of Bitcoin mining and energy storage at Assú Sol highlights the evolving economics of large-scale renewable projects. As clean power capacity grows globally, utilities and developers may increasingly look to innovative demand-response strategies to manage grid limitations and extract value from energy that would otherwise be curtailed. The practical implementation of these ideas at Assú Sol could take several years and will depend on regulatory, technical, and market developments both within Brazil and in global energy and digital asset markets.
UK ends tax-advantaged crypto ETN purchases in ISAs after regulatory reclassification
In a significant regulatory shift, British retail investors will no longer be able to buy cryptocurrency exchange-traded notes (ETNs) within tax-favoured Individual Savings Accounts (ISAs) from 6 April 2026 onwards. This change stems from a reclassification by HM Revenue & Customs (HMRC) that alters the tax-wrapper eligibility of these products, effectively removing them from the mainstream ISA framework.
What Changed and Why It Matters
Crypto ETNs are financial instruments designed to track the performance of digital assets — such as Bitcoin and Ethereum — without requiring investors to hold the actual tokens. They became accessible to UK retail investors through the Financial Conduct Authority (FCA)’s rule change in October 2025, ending a four-year ban and allowing crypto ETNs to be listed on recognised UK exchanges and held within ISAs and pensions.
However, HMRC’s reclassification now means crypto ETNs no longer qualify for inclusion in standard Stocks-and-Shares ISAs. Instead, they are eligible only under the less common Innovative Finance ISA (IFISA) wrapper, which is primarily used for peer-to-peer lending and other ‘alternative’ finance products and is not protected by the UK’s Financial Services Compensation Scheme (FSCS).
Impact on Investors and Platforms
The practical effect of this change is immediate: major UK investment platforms — including those that currently allow crypto ETNs in Stocks-and-Shares ISAs — will cease new purchases of crypto ETNs inside ISAs starting April 2026. Retail investors will still own existing holdings, but no new investments can be made within those tax-favoured accounts unless their platform offers an IFISA capable of holding ETNs — something no mainstream provider has announced to date.
This is not merely a cosmetic regulatory tweak but a material restriction on tax-efficient crypto exposure for UK savers. ISAs are widely used to shelter both income and capital gains from tax up to an annual allowance (currently £20,000), making them a cornerstone of many long-term investment strategies. Removing crypto ETNs from this wrapper reduces the appeal of these products for cautious or tax-sensitive investors and may reshape how digital assets fit into personal finance planning.
Context and Broader Digital Assets Regulation
The UK’s approach to digital assets has evolved rapidly over recent years. The FCA’s October 2025 decision to allow retail access to crypto ETNs was seen as a landmark move toward integrating regulated crypto products into mainstream financial markets. Yet, the HMRC reclassification illustrates the complex interplay between tax policy and investor protection, reflecting ongoing regulatory caution amid concerns about volatility and consumer risk.
While proponents of the reclassification argue it protects less sophisticated investors from high-risk exposures, critics view it as a setback for the UK’s ambition to lead in digital asset innovation, particularly relative to other jurisdictions that are broadening tax-efficient crypto access.
SEC clears WisdomTree to let its tokenized money-market fund trade and settle 24/7
In a formal order (Release No. 35968) issued on February 23, 2026, the U.S. Securities and Exchange Commission (SEC) has exempted WisdomTree from specific mutual fund regulatory restrictions, allowing its WisdomTree Government Money Market Digital Fund — a tokenized version of a money market fund — to be traded intraday at a fixed $1 per share price with participating broker-dealers, rather than only at end-of-day net asset value as under traditional mutual fund rules.
What the SEC Order Does
The exemptive order was granted under Section 6(c) of the Investment Company Act of 1940 and includes relief from Section 22(d) and Rule 22c-1, which normally prohibit dealers from selling mutual fund shares at other than the next calculated NAV. It also provides relief under Section 17(d) and Rule 17d-1, allowing affiliated broker-dealers to enter into arrangements with the fund that would otherwise be restricted. The SEC determined these exemptions were “appropriate in the public interest and consistent with the protection of investors.”
How This Changes Trading and Settlement
Under the relief:
Dealer-Principal Trading: Registered broker-dealers — starting with WisdomTree Securities, Inc. — can buy and sell fund shares on a principal basis at a $1 price intraday, instead of waiting for end-of-day NAV.
Tokenized Structure: The fund issues digital tokens on blockchain networks, allowing secondary trading outside traditional market hours and enabling real-time settlement — a departure from the standard forward pricing and T+1 settlement model.
Operational Continuity: The fund continues to operate as a regulated money market fund while leveraging blockchain mechanics for settlement and liquidity.
Why This Matters in Context
Money market funds traditionally price and settle investor transactions only once per business day. The SEC’s exemptive order effectively creates a hybrid model that preserves the fund’s regulatory compliance under the Investment Company Act while enabling continuous trading and settlement via digital tokens — a first for a registered U.S. mutual fund. According to Wisdomtree press release, this mechanism is intended to reduce the “cash-drag” associated with delayed settlement and broaden access for investors who operate outside regular market hours.
Structural and Regulatory Details
The relief applies not just to this specific fund but potentially to other series of the WisdomTree Digital Trust or similar funds that meet specified criteria, such as maintaining a stable $1 NAV and having an adviser affiliated with WisdomTree.
Market and Adoption Considerations
This decision as part of broader movement toward integrating blockchain settlement rails with regulated capital markets products, potentially influencing future tokenization efforts for other asset types under U.S. securities laws.
UK’s FCA to test stablecoin innovation with four selected firms including Revolut
The UK’s Financial Conduct Authority (FCA) has chosen four firms, including fintech giant Revolut, to trial stablecoin products in its regulatory sandbox to inform final rules for digital assets.
Overview of the UK Stablecoin Sandbox Initiative
Britain’s FCA, the country’s main financial regulator, has launched a dedicated stablecoin cohort within its Regulatory Sandbox — a controlled environment where companies can test financial innovations under regulatory oversight. This initiative aims to help shape the UK’s permanent stablecoin regulatory framework, with final rules expected before the end of 2026. Testing is due to begin in the first quarter of 2026.
Stablecoins are a type of cryptocurrency designed to maintain a stable value by pegging to a fiat currency such as the British pound or US dollar. They are widely used in digital asset markets for payments, settlement and trading due to their relative price stability compared with other cryptocurrencies.
The Four Selected Firms
From more than 20 applicants, the FCA selected the following firms to participate:
Monee Financial Technologies – A fintech startup working on digital payments and asset solutions.
ReStabilise – Developer of stablecoin-related systems and infrastructure.
Revolut – A major London-headquartered financial technology company serving over 40 million customers globally, known for banking, payments, and crypto services. The company was valued at about $75 billion in 2025.
VVTX – A tech firm proposing stablecoin product trials with various use cases.
These participants span different parts of the digital asset ecosystem and will explore a range of stablecoin applications including payments, wholesale settlement and crypto trading under close supervision.
Revolut’s Position and Regulatory Context
Revolut stands out in the cohort due to its size and market reach. The company received a UK banking licence in 2024 after a prolonged approval process but is still operating under a restricted regime which limits activities such as deposit taking to £50,000 and awaits further approvals for consumer credit services.
Revolut plans to trial a pound-pegged stablecoin that users could buy, hold, sell and transfer within its platform and potentially across broader digital markets. This exploration is part of its broader push into crypto assets, where it already offers trading services, payment cards and accessibility to digital tokens.
The FCA’s support for Revolut’s sandbox application reflects confidence in testing regulated stablecoin innovation even as the company works towards full licensing.
Purpose and Expected Outcomes
The sandbox framework allows firms to experiment with stablecoin services in real-world conditions with safeguards that limit potential harm to consumers. Participants will receive ongoing feedback from FCA specialists, enabling the regulator to assess how proposed rules perform in practice before formal implementation.
The FCA’s stablecoin testing focuses primarily on issuance and operational behaviour, not just theoretical regulatory design. Results will directly influence the final UK stablecoin regime, which is part of a broader regulatory roadmap including custody requirements, market conduct standards and prudential rules for digital assets.
This initiative also aligns with broader UK policy goals, including the government’s National Payments Vision, which emphasises modernised and efficient payment systems.
Regulatory and Market Context
The FCA’s sandbox comes amid global efforts to establish stablecoin regulations. The United States and European Union have already enacted regulatory frameworks for stablecoins, and the UK aims to remain competitive while ensuring consumer protection and financial stability.
Nonetheless, some industry voices have criticised aspects of the UK’s proposed regime as comparatively restrictive, particularly around capital and holding limits for stablecoin issuers.
What Happens Next
Sandbox testing begins: First quarter of 2026.
Final stablecoin rules: Expected before the end of 2026, informed by sandbox outcomes.
Authorization gateway: Firms planning stablecoin services will need full authorisation once the regime goes live, expected in 2027.
By embedding live trials into the rule-making process, UK regulators are attempting to balance innovation and risk management in a digital asset space that continues to evolve rapidly.
Meta begins testing stablecoin payments across its social platforms
Meta Platforms Inc., the U.S. technology company that owns Facebook, Instagram and WhatsApp—services used by more than 3 billion people worldwide—has initiated trials to accept stablecoin transactions in its apps, marking a renewed move into digital asset payments, according to a Bloomberg report.
What’s Happening?
Meta is conducting a small-scale pilot to enable payments using stablecoins—cryptocurrencies designed to maintain a stable value typically pegged to fiat currencies like the U.S. dollar—within its existing payments infrastructure. The trial uses established third-party stablecoins rather than one issued by Meta itself, though the specific tokens involved have not been publicly disclosed.
A Meta representative confirmed the company “has no plans to develop its own stablecoin,” emphasizing that the goal is to let people and businesses transact using their preferred digital currency options.
Why It Matters
This effort represents Meta’s second attempt to enter crypto payments. In 2019, the company proposed its own digital currency, Libra (later renamed Diem), which faced intense regulatory opposition and was ultimately shuttered in 2022.
In contrast, the current approach seeks to avoid regulatory scrutiny by integrating existing stablecoins into Meta’s platforms via third-party partners. Industry reports suggest Meta has solicited proposals from external firms—including payments infrastructure company Stripe, which acquired stablecoin specialist Bridge in 2024—to support the testing and potential development of a new wallet experience.
Context in the Broader Market
The stablecoin ecosystem has grown significantly since Meta’s first attempt in 2019, with market liquidity now above $300 billion and a regulatory environment in the U.S. that has become clearer following new federal guidelines enacted in 2025.
Financial technology firms such as Stripe, PayPal and others are increasingly building stablecoin capabilities, reflecting broader interest in digital currencies as tools for faster, lower-cost cross-border payments and creator payouts.
What’s Next?
Meta is aiming to expand stablecoin payment functionality across its social and messaging platforms in the second half of 2026, with users potentially able to send money, make purchases or receive payouts using digital tokens without traditional banking rails.
Key details—such as which regions and apps will see features first, which stablecoins will be supported, and how compliance and custody will be handled—remain under development.
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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.
