The Bit Gazette

Category: Crypto

Deutsche Bank taps Ripple’s infrastructure for cross-border payments, no XRP on the balance sheet

Deutsche Bank is preparing to integrate Ripple’s enterprise blockchain infrastructure into its cross-border payments framework, according to developer community disclosures — a move the German lender expects to cut transaction costs by as much as 30%, while stopping well short of holding XRP as a treasury asset.

Crucially, the bank is not adopting XRP as a treasury asset. Instead, it plans to utilize software and infrastructure developed by Ripple Labs to enhance payment routing, liquidity management, and transaction settlement speeds.

Faster Settlements, Lower Costs

At the heart of the Deutsche Bank Ripple partnership is the promise of efficiency.

Ripple’s enterprise solutions are designed to settle cross-border transactions in seconds rather than through legacy correspondent banking systems that can take days. According to community updates, Deutsche Bank expects the integration to reduce transaction costs by as much as 30%.

That aligns with Ripple’s longstanding value proposition: modernizing global payments through blockchain-based messaging and liquidity tools.

Ripple CEO Brad Garlinghouse has repeatedly emphasized that blockchain’s core utility lies in streamlining cross-border settlements. “The opportunity to reduce friction in global payments is enormous,” Garlinghouse said during previous industry appearances, highlighting inefficiencies in legacy SWIFT-dependent processes.

The Deutsche Bank Ripple partnership suggests that large banks are no longer merely experimenting with blockchain—they are preparing to operationalize it.

Not XRP Adoption—But Infrastructure Integration

Despite bullish reactions in crypto circles, it is important to distinguish between XRP adoption and enterprise infrastructure deployment.

The Deutsche Bank Ripple partnership does not currently include direct adoption of XRP. Instead, the focus is on Ripple’s software stack—covering payment messaging, routing optimization, distributed ledger integration, and real-time liquidity coordination.

That distinction matters. Many banks are comfortable adopting blockchain rails without holding volatile digital assets on their balance sheets.

Still, institutional usage of Ripple infrastructure tends to strengthen the broader ecosystem. Increased enterprise integration often enhances network effects and creates indirect demand pathways for digital liquidity solutions.

DLT Rails and Real-Time FX Liquidity

Under the Deutsche Bank Ripple partnership, the bank is expected to explore distributed ledger technology (DLT)-based payment rails for foreign exchange and cross-border flows. Real-time liquidity tools could allow the bank to manage global settlements more dynamically, reducing idle capital and improving treasury efficiency.

This reflects a broader industry shift. Major financial institutions—including JPMorgan Chase and Citigroup—have been experimenting with blockchain-based settlement mechanisms to reduce counterparty and settlement risks.

The Deutsche Bank Ripple partnership positions the German lender squarely within that modernization wave.

Beyond payments, Deutsche Bank is also reportedly advancing digital asset custody services. By building infrastructure capable of safeguarding tokenized assets, the bank could position itself as a bridge between traditional finance and the expanding digital asset economy.

Institutional Momentum Builds

The broader significance of the Deutsche Bank Ripple partnership lies in what it signals: institutional momentum.

According to community developer commentary, nondisclosure agreements related to Ripple integrations are beginning to lift, suggesting additional banks may soon disclose similar infrastructure collaborations.

If confirmed, that would reinforce Ripple’s standing as a leading enterprise blockchain provider.

Financial technology analysts have long argued that blockchain adoption by tier-one banks would represent a tipping point. As noted in reports by Deloitte, distributed ledger systems can materially reduce reconciliation costs and operational inefficiencies in global finance.

The Deutsche Bank Ripple partnership could therefore be part of a broader multi-bank migration toward blockchain-based settlement architecture.

Ecosystem Implications: XRP and RLUSD

While XRP is not directly part of the current agreement, the Deutsche Bank Ripple partnership is widely viewed as positive for Ripple’s ecosystem.

Institutional integrations enhance Ripple’s credibility and increase enterprise exposure to its network architecture. Historically, greater infrastructure usage has correlated with broader ecosystem engagement.

Another potential beneficiary is Ripple’s stablecoin, RLUSD. The asset has climbed in digital asset rankings, reaching a reported market capitalization of $1.52 billion. Growth in RLUSD has largely been attributed to institutional digital economy partnerships and stablecoin demand for transactional use cases.

If the Deutsche Bank Ripple partnership expands into liquidity corridors or tokenized settlement layers, RLUSD could see further enterprise traction.

Strategic Modernization Amid Competitive Pressure

For Deutsche Bank, the decision appears strategic rather than experimental.

Global banking is undergoing rapid digital transformation. Fintech challengers and blockchain-native platforms are eroding traditional revenue streams, particularly in cross-border payments.

By embracing Ripple-powered tools, Deutsche Bank is signaling its intent to remain competitive in an evolving financial landscape.

The Deutsche Bank Ripple partnership also underscores how traditional institutions are selectively adopting blockchain without fully embracing decentralized finance models.

Rather than displacing banks, blockchain infrastructure is increasingly being integrated into existing financial frameworks.

The Bigger Picture

The long-term significance of the Deutsche Bank Ripple partnership may extend beyond cost savings.

If additional institutions follow suit—as some community observers suggest—the banking sector could witness accelerated standardization around enterprise blockchain solutions.

As Garlinghouse has previously stated, blockchain adoption in finance is not about replacing institutions but modernizing them.

The Deutsche Bank Ripple partnership illustrates that modernization is no longer theoretical. It is operational.

And while XRP itself remains outside the current scope of integration, the ripple effects—technological and symbolic—are already moving through the global banking system.

In a financial world where speed, cost efficiency, and liquidity optimization determine competitive advantage, the Deutsche Bank Ripple partnership could mark another decisive step toward blockchain-powered banking at scale.

02/19/2026
Elizabeth Warren demands Fed and Treasury formally rule out any crypto bailout as Bitcoin slides 50% from its peak

Senator Elizabeth Warren has sent a formal letter to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell demanding they explicitly rule out any government rescue of crypto markets after Bessent failed to give a straight answer when pressed on whether taxpayer money could be used to support digital assets amid Bitcoin’s 50% slide from its October peak.

The demand comes amid renewed turbulence in digital asset markets, with Bitcoin having fallen roughly 50% from its October peak. The downturn has reignited long-standing debates over systemic risk, investor protection, and whether the federal government should ever intervene in the crypto sector.

A Clear Warning Against a Crypto Bailout

Warren, the ranking Democrat on the Senate Banking Committee, left little room for ambiguity. In her letter, she urged both the Treasury Department and the Federal Reserve to categorically reject any form of Crypto Bailout, including direct purchases of digital assets, federal guarantees, or the creation of emergency liquidity facilities aimed at propping up crypto markets.

“Rather than giving a simple ‘no,’ he deflected,” Warren wrote, referencing recent congressional questioning of Secretary Bessent. “It’s deeply unclear what, if any, plans the U.S. government currently has to intervene in the current Bitcoin selloff.”

Her concern centers on whether federal agencies might attempt a backdoor Crypto Bailout under the guise of financial stability measures.

During a February 6 session, Bessent was pressed on whether taxpayer money would be used to purchase crypto assets or otherwise support the industry. He responded that the government is “retaining seized Bitcoin,” but stopped short of ruling out broader intervention—an answer Warren found unsatisfactory.

For Warren, anything short of an unequivocal rejection raises red flags.

Billionaire Losses Fuel Debate

The market slide has erased billions in personal wealth among prominent industry leaders—fueling speculation about whether political pressure could mount for a Crypto Bailout if losses deepen.

Changpeng Zhao, founder of Binance, has reportedly seen his net worth shrink by nearly $30 billion during the downturn. Brian Armstrong, CEO of Coinbase, has taken an estimated $7 billion hit. Meanwhile, Michael Saylor, whose firm MicroStrategy holds substantial Bitcoin reserves, has watched company shares fall nearly 20% since the beginning of the year.

Warren cited these losses to underscore her broader argument: wealthy insiders who profited during crypto’s ascent should not be shielded from downturns by a taxpayer-funded Crypto Bailout.

“The American public should not be on the hook for speculative bets made by crypto billionaires,” Warren has repeatedly argued in past public statements.

Liquidations and Leverage

According to Warren, the recent selloff has been intensified by “cascading liquidations of leveraged positions.” As crypto prices dropped, heavily leveraged traders were forced to unwind positions, accelerating downward pressure.

Crypto Bailout

Market analysts note that leverage cycles are not uncommon in crypto, where volatility remains significantly higher than in traditional financial markets. But Warren suggests that such instability is precisely why the federal government must avoid even the appearance of a Crypto Bailout.

Her position aligns with a broader philosophy that speculative markets must be allowed to correct without government intervention, particularly when retail investors face the brunt of losses.

A History of Skepticism

Warren has long been one of crypto’s most vocal critics in Congress. She has called for stronger anti-money laundering rules, tighter exchange oversight, and enhanced consumer protections.

Her latest warning against a Crypto Bailout builds on that regulatory agenda. In her letter, she pointed to a record $17 billion reportedly lost to cryptocurrency fraud and theft in 2025, arguing that federal agencies should focus on strengthening investor safeguards rather than rescuing the industry.

“Federal financial agencies must strengthen protections for retail crypto investors,” she wrote.

For Warren, the solution to crypto market instability is stricter oversight—not a government-funded Crypto Bailout.

Broader Policy Implications

The prospect of a Crypto Bailout, even if remote, carries political weight in a post-2008 environment where public trust in financial rescues remains fragile.

In 2008, federal interventions to stabilize banks and automakers were widely criticized as rewarding excessive risk-taking. Warren’s message is clear: crypto should not receive similar treatment.

Federal Reserve Chair Jerome Powell has previously emphasized that the central bank does not regulate crypto directly but monitors its potential spillover risks. If digital asset markets were to pose systemic threats to the broader financial system, policymakers might face difficult decisions.

Still, as of now, neither the Treasury Department nor the Federal Reserve has announced plans resembling a Crypto Bailout.

Industry Silence, Political Noise

The crypto industry itself has not formally requested a bailout. Many leaders continue to argue that decentralized markets are resilient by design and capable of weathering downturns without federal assistance.

Yet the political optics of billionaire losses and collapsing token prices have amplified scrutiny.

The debate over a potential Crypto Bailout also intersects with broader discussions about how digital assets should be regulated, taxed, and integrated into traditional finance.

For Warren, clarity is non-negotiable.

Her letter demands a formal guarantee that no taxpayer resources—direct or indirect—will be used to support digital asset prices or shield crypto moguls from market forces.

Whether federal agencies respond with an explicit denial remains to be seen.

But one thing is certain: as volatility persists and wealth evaporates, the political battle over a possible Crypto Bailout is no longer hypothetical. It has become a flashpoint in the ongoing struggle to define the government’s role in the future of digital finance.

02/19/2026
Robinhood Chain testnet hits 4 million transactions in a week as CEO eyes stock tokenization

Robinhood’s custom Ethereum Layer-2 network processed more than four million testnet transactions in its first seven days, CEO Vlad Tenev announced on X — the first hard usage metric for a blockchain the company is positioning as retail infrastructure for tokenized real-world assets and stock tokens.

Calling the rollout “the next chapter of finance,” Tenev said developers are already building applications on the Robinhood Chain testnet, which runs on technology derived from Arbitrum.

A Fast Start for a Financial-Grade Layer 2

The Robinhood Chain testnet, which went live in early February, allows developers to experiment with network endpoints, deploy smart contracts, and test digital representations of financial instruments—including so-called “stock tokens” available only within the test environment.

Robinhood has positioned the new chain as a purpose-built Ethereum Layer-2 focused on financial use cases. Built using Arbitrum’s scaling stack, the network is designed to lower transaction costs and increase throughput while maintaining compatibility with Ethereum’s broader ecosystem.

Early traction—four million transactions in seven days—has sparked debate across crypto circles about whether the Robinhood Chain testnet signals genuine developer adoption or simply internal load testing.

“Testnet numbers are usually vanity metrics,” one user wrote in response to Tenev’s post. “But four million in a week suggests there’s at least actual curiosity.”

CEO Robinhood Testnet Source: X

That distinction—curiosity versus commitment—may define the next phase of the project.

Beyond Brokerage: Tokenized Real-World Assets

The Robinhood Chain testnet represents more than just another Layer-2 launch. It signals Robinhood’s strategic pivot toward tokenized assets and programmable finance.

In recent years, major financial institutions have accelerated experimentation with blockchain-based tokenization. BlackRock CEO Larry Fink has repeatedly argued that tokenization could reshape capital markets, calling it “the next generation for markets” in his 2023 annual letter to investors.

Robinhood appears to be aligning itself with that thesis—aiming to bridge retail investors with blockchain-native financial rails.

The Robinhood Chain testnet enables developers to simulate tokenized securities, lending products, and other financial primitives in a controlled environment. If successful, such infrastructure could position Robinhood as a retail gateway into tokenized markets.

Still, moving from testnet experimentation to meaningful RWA volume is a significant leap.

One skeptic responding to Tenev’s post questioned whether activity on the Robinhood Chain testnet reflects third-party developers building real applications or primarily internal engineering tests.

“The real challenge,” the user wrote, “will be moving meaningful RWA volume without complex UX hurdles.”

That challenge is not trivial. Onboarding mainstream users into decentralized systems has historically been slowed by wallet friction, gas fees, and custody concerns.

The Layer-2 Debate Intensifies

The debut of the Robinhood Chain testnet also reopens a broader debate: Does the crypto industry need more blockchains?

Some commentators argue that Ethereum’s ecosystem is already mature, with deep liquidity and a large developer base. Adding new chains, they say, risks fragmenting adoption.

Ethereum co-founder Vitalik Buterin has long advocated for Layer-2 scaling solutions over competing Layer-1 networks, suggesting that modular scaling helps preserve network security while improving efficiency.

By building atop Arbitrum technology rather than launching an independent Layer-1, Robinhood appears to be aligning with that philosophy. The Robinhood Chain testnet remains Ethereum-compatible, theoretically allowing interoperability with existing decentralized applications.

Still, liquidity fragmentation remains a concern. Each new chain competes for developers, users, and capital—an increasingly scarce commodity in a softer crypto market.

Mixed Sentiment, High Expectations

Reactions to the Robinhood Chain testnet milestone have ranged from skepticism to optimism.

Some industry watchers described the transaction volume as “seriously impressive,” noting that if mainnet performance mirrors testnet capacity under sustained load, Robinhood could establish itself as a significant retail on-ramp to crypto-native financial services. Others caution that testnet engagement does not always translate into real-world traction.

Historically, blockchain projects often generate strong early metrics during testing phases, only to struggle with sustained user retention once incentives shift. For Robinhood, the stakes are particularly high.

Business Backdrop: Revenue Pressure from Crypto Slowdown

The Robinhood Chain testnet launch comes as the company navigates a shifting revenue landscape.

In its fourth quarter of 2025 earnings report, Robinhood posted revenue of $1.28 billion, representing a 27% year-over-year increase. However, results fell slightly short of Wall Street expectations.

Crypto-related revenue declined approximately 38% compared to the prior year, reflecting broader market weakness in digital asset trading volumes.

Equities, options trading, and subscription services helped offset the crypto downturn, but the drop underscores the volatility inherent in transaction-driven business models.

Against that backdrop, the Robinhood Chain testnet could represent a strategic diversification effort—moving beyond simple brokerage transactions into infrastructure ownership and blockchain-based financial services.

The immediate question is whether the Robinhood Chain testnet activity translates into meaningful developer ecosystems and real-world asset tokenization once the network transitions to mainnet.

Scaling is only part of the equation. Regulatory clarity, liquidity depth, and seamless user experience will determine whether Robinhood can successfully integrate blockchain infrastructure into its core product suite.

Tenev has framed the initiative as foundational rather than experimental.

Whether the Robinhood Chain testnet becomes a cornerstone of retail-facing decentralized finance—or another incremental scaling experiment—will depend on what developers build next and how effectively Robinhood converts early curiosity into durable adoption.

For now, one thing is clear four million transactions in a week have ensured that the Robinhood Chain testnet is no longer theoretical. It’s operational—and the market is watching closely.

02/19/2026
Nimbus Capital backs Chimera Wallet with $15 million to build self-custody DeFi tools directly on Bitcoin

Nimbus Capital has committed $15 million to Chimera Wallet, a non-custodial Bitcoin wallet built on VTXO-based architecture, in a partnership aimed at delivering lending, swaps, liquidity tools and fiat payment integrations directly on Bitcoin without relying on wrapped assets or external smart contract platforms..

On February 18, Nimbus Capital announced a $15 million strategic partnership with Chimera Wallet, a non-custodial wallet built on Bitcoin’s VTXO-based architecture. The collaboration is aimed at accelerating decentralized finance capabilities on Bitcoin while preserving the network’s core principles of security and self-custody.

At its core, the Nimbus Capital Chimera Wallet alliance is focused on expanding programmable financial tools that operate natively on Bitcoin, rather than relying on wrapped assets or external smart contract platforms. The partners say this approach allows users to access DeFi-style services without compromising custody or trust assumptions.

Institutional Capital Meets Bitcoin-Native Design

The $15 million commitment positions the Nimbus Capital Chimera Wallet collaboration as one of the more sizable infrastructure-focused investments in the Bitcoin DeFi space this year. Rather than targeting speculative applications, the partnership centers on foundational tools: payments, liquidity, lending, and asset exchange, all anchored directly to Bitcoin.

According to the companies, the initiative combines Bitcoin’s base-layer security with Bitcoin-native programmability enabled through the Arkade layer, creating a framework for financial applications that remain aligned with Bitcoin’s design philosophy.

“This partnership brings together capital markets expertise and deep Bitcoin infrastructure development,” said Claudio Levrini, Founder and Director of Chimera Wallet. “Our goal is to expand Bitcoin’s real-world utility while maintaining full self-custody and minimizing trust trade-offs.”

Levrini emphasized that the Nimbus Capital Chimera Wallet effort is not about recreating Ethereum-style DeFi, but about building financial tools that respect Bitcoin’s constraints and strengths.

Expanding DeFi Without Sacrificing Self-Custody

A central theme of the Nimbus Capital Chimera Wallet partnership is user control. Chimera Wallet operates as a non-custodial platform, meaning users retain direct ownership of their private keys while accessing financial services.

Through the collaboration, users are expected to gain access to asset swaps, liquidity provision, lending mechanisms, fiat onramps, and payment integrations, all while remaining in self-custody. This approach addresses one of the long-standing criticisms of centralized crypto finance: counterparty risk.

Robert Baker, Managing Partner at Nimbus Capital, framed the partnership as a strategic bridge between institutional finance and decentralized systems.

“We see Bitcoin entering a new phase where institutional participation and decentralized infrastructure can coexist,” Baker said. “The Nimbus Capital Chimera Wallet partnership is about supporting tools that allow Bitcoin to function as both a store of value and a programmable financial network.”

Product Expansion and Global Rollout Plans

Beyond capital investment, the Nimbus Capital Chimera Wallet collaboration includes an aggressive product development roadmap. Chimera Wallet plans to accelerate the global rollout of its Bitcoin-linked payment tools, including a Visa card that enables BTC-to-fiat conversion at the point of sale.

Additional planned features include digital gift cards, merchant gateway integrations, enhanced liquidity routing, and expanded cross-chain interoperability. These upgrades are intended to make Bitcoin more usable in everyday economic activity, not just as a long-term investment asset.

User-facing tools are also part of the roadmap. Chimera Wallet aims to introduce portfolio management dashboards, yield-bearing Bitcoin products, and simplified swap interfaces. According to the company, these features are being designed with an emphasis on transparency and risk minimization.

Industry observers note that the Nimbus Capital Chimera Wallet strategy reflects a broader shift in crypto investment. Capital is increasingly flowing toward infrastructure that prioritizes compliance readiness, scalability, and real-world usage rather than short-term yield extraction.

Positioning Bitcoin for the Next DeFi Cycle

Bitcoin DeFi has historically lagged behind smart-contract platforms due to technical limitations. However, advances in Bitcoin-native programmability and layer-based execution environments are changing that narrative.

The Nimbus Capital Chimera Wallet initiative is part of a growing movement to unlock financial functionality directly on Bitcoin without introducing systemic fragility. By leveraging Bitcoin’s settlement assurances while extending functionality at higher layers, the partnership aims to attract both institutional and decentralized users.

Market participants say such developments could gradually reshape how Bitcoin is used in financial markets. Rather than relying solely on centralized exchanges or custodians, users may increasingly interact with Bitcoin through self-custodial financial tools.

A Strategic Signal to the Market

The announcement sends a broader signal about where institutional capital believes Bitcoin infrastructure is headed. The Nimbus Capital Chimera Wallet partnership suggests confidence that Bitcoin-native DeFi can scale responsibly and attract meaningful adoption.

While execution will determine long-term impact, the collaboration underscores a key theme in the current market cycle: infrastructure-first investment. By focusing on custody-preserving, programmable financial tools, Nimbus Capital and Chimera Wallet are betting that the next phase of Bitcoin growth will be driven by utility, not speculation.

As development progresses, the Nimbus Capital Chimera Wallet partnership will likely be closely watched by both institutional investors and Bitcoin purists. Its success—or failure—may help define whether Bitcoin can support a robust DeFi ecosystem without sacrificing the principles that made the network valuable in the first place.

02/19/2026
13 months of relentless selling wiped $209 billion from altcoin markets, and analysts warn it’s not over

Altcoin markets have shed roughly $209 billion in net selling pressure over the past 13 months, keeping the sector’s total market capitalization below $1 trillion and prompting growing disagreement among analysts over whether a floor is forming — or whether the worst is still ahead.

Market data suggests the drawdown is not just prolonged but structurally different from previous bear cycles. While some participants expect a base to form following five consecutive months of decline, broader indicators show that the Altcoin market capitalization remains weighed down by liquidity fragmentation, token oversupply, and a lack of sustained buyer demand.

Selling Pressure Reaches Multi-Year Extremes

According to data from CryptoQuant, selling pressure across altcoins—excluding bitcoin and ether—has reached its most severe level in roughly five years. Cumulative buy/sell delta data now shows net selling of approximately $209 billion over the past 13 months.

In early 2025, that delta hovered near zero, signaling balanced supply and demand. Since then, the trend has deteriorated steadily without any meaningful reversal. This prolonged imbalance has kept the Altcoin market capitalization locked in a downtrend despite intermittent relief rallies.

“This is not a dip. It’s 13 months of continuous net selling on CEX spot,” said market analyst IT Tech. “Minus $209 billion doesn’t mean a bottom. It means buyers are gone.”

Crypto Total Market Cap Excluding TOP 10. Source: Pentoshi

Analysts note that this pattern contrasts sharply with the 2022–2023 bear market, when selling pressure gradually eased and prices entered a consolidation phase before recovering. In the current cycle, that deceleration has yet to materialize, leaving the Altcoin market capitalization vulnerable to further erosion.

Derivatives Data Shows Fading Risk Appetite

Derivatives positioning adds another layer to the picture. Data from Alphractal indicates that traders are maintaining significantly higher long exposure to bitcoin than to altcoins. For the first time on record, bitcoin’s long/short ratio has remained above the altcoin average for four consecutive months.

This divergence suggests short-term traders are rotating away from altcoins, reducing expectations for volatility and near-term upside. As leverage and speculative interest drain from the sector, the Altcoin market capitalization continues to lag behind bitcoin-led market moves.

Oversupply of Tokens Dilutes Recovery Potential

Beyond sentiment and positioning, structural supply dynamics are also weighing on the market. The Altcoin market capitalization has fallen back to levels last seen roughly five years ago, yet the number of listed tokens has exploded.

The altcoin analytics account OverDose highlighted that around five years ago, roughly 430,000 tokens were competing for capital. Today, that number has surged to approximately 31.8 million—an increase of nearly 70 times.

Altcoin Market Cap Chart. Source: Coingecko

This imbalance means more projects are competing for a market “pie” that has not grown proportionally. As a result, liquidity is increasingly fragmented, making rebounds more fragile and threatening the survival of low-cap tokens. Analysts warn that even if the Altcoin market capitalization stabilizes, many individual assets may never recover.

Technical Structure Signals Ongoing Fragility

When excluding the top 10 tokens, the remaining market capitalization now stands below $200 billion. Technical analysis of this segment shows a developing head-and-shoulders pattern, with prices drifting toward neckline support.

Well-known trader Pentoshi cautioned that any near-term bounce may be limited. “Even if alts bounce here, it likely won’t be substantial,” Pentoshi said. “I think eventually they make new lows. It’s going to take time to work through.”

Such assessments reinforce the idea that the Altcoin market capitalization may face a prolonged basing process rather than a swift V-shaped recovery.

High Failure Rates Reshape Capital Allocation

Fundamental data further underscores the scale of the shakeout. Research shows that by the end of 2025, approximately 53.2% of all cryptocurrencies listed on GeckoTerminal had failed. In 2025 alone, an estimated 11.6 million tokens collapsed.

Long/Short Ratio Headmap. Source: Alphractal

These figures suggest the current downturn is not merely cyclical but potentially transformative. As weaker projects are flushed out, investors may become far more selective, prioritizing liquidity, revenue models, and long-term viability over speculative narratives.

Is a Bottom Forming?

Some market participants argue that extreme pessimism could eventually create the conditions for a bottom. Historically, major altcoin recoveries have followed periods when sentiment reached deeply negative extremes. Still, analysts caution that sentiment alone is not enough.

For a sustainable reversal, the Altcoin market capitalization would likely need to see slowing selling pressure, improving liquidity concentration, and renewed participation beyond a handful of large-cap tokens.

Cumulative Buy/Sell Quote Volume Difference for Altcoin. Source: CryptoQuant.

As the first quarter of 2026 unfolds, opportunities may still emerge for disciplined investors. However, the broader picture suggests patience will be essential. The current bear market appears poised to permanently reshape how capital flows through the altcoin sector, marking a transition from speculative abundance to selective survival within the Altcoin market capitalization landscape.

02/19/2026
Thailand opens derivatives market to Bitcoin and carbon credits in push to build regional crypto hub

Thailand’s Securities and Exchange Commission has received Cabinet approval to recognize bitcoin and carbon credits as eligible underlying assets for derivatives trading, a move regulators say aligns the country’s capital market framework with international standards and positions Thailand as a regional digital finance hub.

Aligning With International Standards

Thailand’s Cabinet approval underscored the importance of harmonizing derivatives oversight with global benchmarks. Across North America, Europe, and parts of Asia, regulators have either launched or are actively assessing regulated crypto derivatives frameworks.

These efforts are often aimed at preventing regulatory arbitrage while ensuring that innovation does not outpace supervision.

By acting now, Thailand signals that it does not intend to trail behind other financial centers in adapting to digital asset market realities. Instead, Thai crypto regulation appears designed to evolve in step with international regulatory norms, particularly in areas such as market surveillance, clearinghouse resilience, and investor protection.

The Securities and Exchange Commission has emphasized that investor safeguards remain central to Thai crypto regulation. Enhanced supervision, stricter risk mitigation standards, and structured oversight of exchanges and clearinghouses are intended to limit excessive leverage, reduce operational failures, and contain potential spillover risks. These controls aim to balance market expansion with financial stability.

This cautious yet forward-looking approach mirrors Thailand’s broader stance on digital assets: open to innovation, but firmly controlled. Regulators have repeatedly stressed that product diversity should not come at the expense of transparency or market integrity.

Building a Regional Digital Finance Hub

Beyond derivatives, Thai crypto regulation forms part of a wider national strategy to position Thailand as a regional digital finance hub in Southeast Asia. Policymakers have highlighted fintech development, blockchain adoption, and digital investment products as pillars of future capital market growth.

Regulators have previously announced intentions to strengthen oversight of digital asset service providers, token issuance frameworks, and investment vehicles linked to blockchain-based assets. The expansion of derivatives eligibility fits squarely within this roadmap, providing a regulated channel through which digital assets can intersect with traditional financial instruments.

If implemented effectively, the policy could enhance Thailand’s competitiveness against neighboring financial centers seeking to attract fintech startups, institutional capital, and cross-border trading activity. Regulated crypto derivatives may also encourage knowledge transfer and infrastructure upgrades within the local financial ecosystem.

However, industry participants caution that execution will be decisive. Contract design, margin frameworks, liquidity depth, and participation from both domestic and international institutions will determine whether Thai crypto regulation translates into a functioning and attractive derivatives market. Without sufficient liquidity or clear operational guidelines, products risk remaining symbolic rather than transformative.

A Structural Turning Point

The decision to formally recognize bitcoin and other digital assets as underlying instruments for derivatives represents more than a regulatory adjustment. It signals a structural shift in how digital assets are treated within Thailand’s financial system.

Thai crypto regulation is moving beyond basic supervision of exchanges and token listings. It is embedding digital assets into core market infrastructure, including derivatives trading venues, clearing and settlement systems, and institutional risk management frameworks. This integration suggests a long-term commitment rather than a temporary policy experiment.

For investors, the change opens pathways to manage exposure through regulated instruments instead of relying solely on spot markets, which often carry higher volatility and operational risk. For Thailand, it reinforces a strategic positioning that emphasizes innovation within clearly defined regulatory guardrails.

As global financial markets continue to converge with blockchain-based finance, Thai crypto regulation is entering a new phase. Digital assets are no longer peripheral or experimental.

They are becoming recognized components of a regulated capital market ecosystem, with derivatives serving as a key bridge between traditional finance and the evolving digital asset economy.

02/18/2026
Tax refund season puts $150 billion in play, analysts are watching how much finds its way into Bitcoin

Roughly $150 billion in US tax refunds is expected to reach American households by late March, and analysts at several financial firms are now debating how much of it, if any, could rotate into bitcoin and other digital assets.

“The confluence of significant US tax refunds and key technical levels across major crypto markets presents an unusual opportunity,” said Maria Chen, Senior Market Strategist at Delphi Digital. “If retail traders view this buoyant liquidity as an allocation signal, we could see behavior reminiscent of 2021’s YOLO trading environment.”

Industry observers point to historical patterns: when consumers receive lump-sum payments, from stimulus checks to bonus payouts, some portion often finds its way into equities and risk assets.

With average refund sizes reportedly growing compared with recent years, there’s renewed speculation that some of this fresh cash could flow into Bitcoin and altcoins.

Why This Season’s Tax Refunds Are Bigger — And Why It Matters

At the heart of the conversation is the fact that US tax refunds are expected to be larger than in past years. Government data and early filing statistics indicate that the average refund amount has climbed modestly in early 2026, driven in part by recent tax code changes that expanded deductions and credits.

U.S. Treasury Secretary Scott Bessent has publicly commented that households may see “very large refunds” this tax season, a projection supported by analytics from several financial research firms.

Wolfe Research, for example, estimates meaningful incremental gains in refund amounts for lower and middle-income households — factors that could boost overall liquidity when refunds are disbursed.

Analysts attribute this partly to the IRS’s decision not to update withholding tables promptly after tax law changes, resulting in higher withholdings and larger refunds when tax returns are filed.

Importantly, timing matters. Refund averages typically peak in mid-February, a schedule that now aligns with breakout price action in many digital assets.

“That intersection — fresh cash meeting technical inflection points — is precisely when markets can surprise on the upside,” said Ethan Wright, Chief Technical Analyst at CoinGecko.

Retail Liquidity + Risk Appetite = Potential Market Impact

Financial institutions like Wells Fargo have underscored that the US tax refunds wave could serve as a catalyst for a renewed “YOLO” trade: a phenomenon where retail investors deploy discretionary funds into high-beta assets.

Why might crypto benefit? Part of it comes down to sentiment. The broader regulatory backdrop around digital assets has improved in recent months, with political signals increasingly pointing to clearer rules and frameworks.

That shift can reduce a key barrier to retail participation, analysts say, reinforcing the appeal of deploying some of the refund windfall into crypto.

Moreover, a modest spillover of refund dollars into spot crypto markets — even a small fraction — could squeeze leveraged positions and accelerate price moves, particularly in markets where liquidity is already concentrated on major exchanges.

“Markets are more sensitive now because of how tight liquidity has been around major support and resistance levels,” noted Chen.

Banks are also throwing weight behind the narrative. Bank of America’s equity strategists recently flagged elevated US tax refunds as a near-term boost to consumer stocks and discretionary spending, noting that larger refunds effectively act like stimulus cash for households.

This broader consumer wealth effect could indirectly benefit crypto by raising risk appetite and encouraging portfolio diversification among retail investors.

What Investors Should Watch in the Weeks Ahead

Over the coming weeks, the IRS will release updated figures that will reveal how quickly the refund wave is building. Markets may take cues from these reports, with volatility likely increasing as more capital flows into consumer accounts and potentially into risk assets.

“We’re not suggesting that every dollar of increased US tax refunds ends up in crypto,” Wright cautioned. “But in leveraged markets, modest capital flows can punch above their weight.”

Investors should also monitor how seasonal dynamics interact with broader macroeconomic conditions, including interest rate expectations and equity market behavior. When retail liquidity collides with sentiment shifts and technical breakouts, the risk of rapid price acceleration — both up and down — rises.

For now, market participants from Wall Street to Main Street are bracing for one of the most watched periods of the year: tax refund season. And with roughly $150 billion in refunds estimated to enter the economy, the question on many traders’ minds is simple — how much of it will find its way into crypto?

02/18/2026
Mubadala discloses $630 million bitcoin ETF position, up 46% from prior quarter despite price pullback

Abu Dhabi sovereign wealth fund Mubadala Investment Company held 12.7 million shares of BlackRock’s iShares Bitcoin Trust as of Dec. 31, 2025 valued at approximately $630.6 million according to an SEC filing submitted Feb. 17, 2026. The position represents a 46% increase from the 8.7 million shares the fund reported just one quarter earlier.

Market observers say moves like this demonstrate that Institutional crypto adoption is transitioning from experimental allocations to strategic portfolio positioning. Even with Bitcoin sliding from above $100,000 to roughly $68,000 in early 2026, large allocators appear undeterred.

Sovereign Funds Shift From Caution to Strategic Allocation

For years, sovereign wealth funds approached digital assets conservatively. That posture is now evolving as Institutional crypto adoption gains regulatory clarity and more familiar investment vehicles. Spot ETFs in particular have acted as a bridge between traditional finance and crypto markets.

“Bitcoin is an international asset,” said Larry Fink in prior public remarks about the asset class, emphasizing its potential role as a global store of value. Statements like this have helped legitimize Institutional crypto adoption among conservative asset managers.

Abu Dhabi’s government has simultaneously worked to build a structured legal environment for digital assets, reinforcing confidence among large investors. Analysts say this regulatory groundwork is a key reason Institutional crypto adoption in the Gulf region is accelerating faster than many expected.

Portfolio Context Shows Crypto Alongside Tech Giants

The same filing reveals Mubadala’s broader holdings, illustrating how Institutional crypto adoption fits within diversified global portfolios rather than replacing traditional assets. Its largest stake remains in GlobalFoundries, valued above $15.7 billion with 450 million shares.

Other notable positions include Arm Holdings at about $150.5 million and Blue Owl Technology Finance at more than $423 million. The mix suggests Institutional crypto adoption is unfolding alongside continued investment in semiconductors, lending, and infrastructure plays rather than replacing them.

Additional holdings span healthcare firms like AbbVie and CVS Health, mining companies such as Agnico Eagle Mines and Barrick Gold, and consumer-facing giants including Adobe Inc., Walt Disney, and Ford Motor Company. Analysts say such diversification demonstrates how Institutional crypto adoption is being integrated methodically rather than speculatively.

Wall Street Participation Reinforces Institutional Crypto Adoption Trend

The Abu Dhabi allocation is not occurring in isolation. Goldman Sachs recently disclosed it holds more than $1.1 billion in the same Bitcoin ETF, a development widely interpreted as confirmation that Institutional crypto adoption has reached a new phase of legitimacy.

Major brokerages such as Bank of America and Morgan Stanley have also updated internal policies allowing financial advisers to recommend Bitcoin ETFs to qualified clients. That policy shift alone has significantly widened distribution channels for Institutional crypto adoption products.

Despite Bitcoin’s recent pullback, ETF capital has remained relatively stable. Analysts attribute that resilience to the nature of Institutional crypto adoption, which tends to involve longer holding periods and disciplined rebalancing strategies rather than emotional trading.

Still, not all forecasts are bullish. Researchers at Standard Chartered, including digital-asset strategist Geoff Kendrick, recently warned that Bitcoin could fall toward $50,000 if macroeconomic pressure persists. Even so, they note that Institutional crypto adoption could cushion volatility because large funds rarely liquidate positions during short-term swings.

Structural Shift, Not Passing Trend

Taken together, Mubadala’s expanded ETF stake, Wall Street participation, and stable institutional inflows suggest Institutional crypto adoption is no longer a fringe development. Instead, it is becoming embedded in modern asset-allocation frameworks.

Strategists argue that when sovereign wealth funds commit hundreds of millions of dollars, it sends a signal across global markets. Smaller funds, pensions, and family offices often follow such moves, accelerating Institutional crypto adoption through imitation and competitive benchmarking.

02/18/2026
Founders Fund goes from 7.5% stakeholder to zero in ETHZilla as institutional appetite for crypto treasury plays cools

Peter Thiel’s Founders Fund has gone from holding roughly 7.5% of ETHZilla to zero, according to SEC filings showing the venture firm fully liquidated its stake by the end of 2025 — a swift reversal that reflects growing institutional skepticism toward crypto treasury companies.

The filing confirms that Founders Fund no longer holds any equity in the Palm Beach–based firm, just months after Founders Fund controlled roughly 7.5% of the company as recently as August. The rapid reversal underscores a sharp shift in institutional sentiment toward businesses whose primary model is stockpiling digital tokens rather than generating operating revenue.

Investor Confidence in Token-Treasury Firms Falters

The swift retreat underscores how Founders Fund and other venture players are reassessing exposure to niche crypto treasury vehicles. These firms gained traction during bullish market cycles by emulating the balance-sheet strategy popularized by Michael Saylor at Strategy (MSTR), which famously converted large portions of corporate reserves into cryptocurrency holdings.

Analysts say Founders Fund’s timing suggests a calculated exit rather than a panic move. “Speculative cycles tend to reward early positioning and punish late conviction,” said Mike McGlone, senior macro strategist at Bloomberg Intelligence. “When liquidity tightens, capital rotates out of high-beta themes first.” His view aligns with broader market data showing cooling enthusiasm for single-asset treasury plays.

From Biotech Failure to Ethereum Bet

ETHZilla, once a little-known public company called 180 Life Sciences, reinvented itself after abandoning its original pharmaceutical ambitions. The rebrand transformed it into a corporate vehicle dedicated largely to accumulating Ethereum. At its peak, the company reportedly amassed more than 100,000 ETH tokens, positioning itself as a leveraged proxy for ether price exposure.

Market watchers note Founders Fund originally invested during that strategic pivot, when speculative appetite for crypto-linked equities was surging. The narrative was simple: if token prices rose, equity holders would gain amplified upside through treasury appreciation. But such structures also magnify downside risk when markets soften, making them highly sensitive to volatility.

Strategic Liquidation as Market Conditions Shift

By early October, Founders Fund appears to have started reducing exposure as digital-asset prices approached local highs. Corporate disclosures indicate the firm sold roughly $40 million worth of ether to fund share buybacks, a move often used to stabilize stock prices. Weeks later, an additional $74.5 million in token sales went toward paying down debt tied to convertible notes.

Filings imply Founders Fund had fully liquidated its position by year-end. The timing coincided with broader market consolidation and growing scrutiny of crypto-centric public companies. For institutional investors, liquidity, balance-sheet resilience, and regulatory clarity have become decisive screening criteria.

What the Exit Signals for the Sector

The decision by Founders Fund may signal a broader recalibration across venture portfolios that loaded up on crypto-linked equities during the last bull cycle. While tokenization and blockchain infrastructure remain long-term themes, analysts increasingly distinguish between firms building technology and those primarily holding volatile assets.

Saylor himself has long defended the treasury-conversion model, arguing that scarce digital assets can outperform cash. “Bitcoin is engineered to outperform traditional stores of value,” he said in a widely cited conference address, underscoring why some corporations still pursue that strategy. Yet the ETHZilla episode illustrates that not all investors share equal tolerance for drawdowns.

02/18/2026
Logan Paul sells Pikachu Illustrator card for $16.49 million, setting new world record for Pokémon collectibles

Logan Paul has sold his PSA-10 Pikachu Illustrator card for $16.49 million through auction house Goldin, setting a new world record for the most expensive Pokémon card ever sold, a title confirmed by Guinness World Records.

The blockbuster Pokémon card sale was conducted by Goldin, the high-end auction house known for record-breaking memorabilia deals. Confirmation soon followed from Guinness World Records, which verified that the transaction sets a new global benchmark for any Pokémon card.

For collectors, investors, and pop culture watchers alike, the Pokémon card sale marks a defining moment—not just for Pokémon, but for the broader alternative asset market.

From niche collectible to cultural icon

The Pikachu Illustrator card is widely regarded as the “holy grail” of Pokémon collectibles. Originally produced in extremely limited quantities for illustration contest winners in the late 1990s, the card’s rarity and mythology have long fueled speculation. What elevated this particular copy was both its pristine PSA-10 grade and its very public ownership.

During his five-year stewardship, Paul transformed the card into a mainstream spectacle. He famously wore it around his neck at major sporting and entertainment events, introducing millions of new viewers to a piece of Pokémon history. That visibility helped turn the eventual Pokémon card sale into a global headline rather than a niche auction result.

Following the auction, Paul described the night as “epic,” thanking the Pokémon community, his team, and Goldin founder Ken Goldin for helping orchestrate a moment he called historic.

“Although bittersweet, I was proud to be a steward of the greatest collectible in the world,” Paul wrote, congratulating the buyer on what he described as an iconic acquisition after the Pokémon card sale closed.

A record confirmed—and a buyer revealed

Guinness World Records confirmed that no previous Pokémon card sale has come close to the $16.49 million figure, eclipsing prior highs by a wide margin. The winning bidder was later revealed as AJ Scaramucci, a venture capitalist and the son of Anthony Scaramucci, the financier and former White House communications director.

The purchase instantly places Scaramucci among an elite class of ultra-high-end collectors, while reinforcing the idea that rare trading cards are now competing with fine art, watches, and classic cars as stores of value.

Industry analysts say the Pokémon card sale underscores how scarcity, narrative, and cultural relevance can converge to create outsized valuations in collectibles markets.

Addressing the fractional ownership chapter

The Pokémon card sale also prompted Paul to clarify lingering questions around the card’s earlier fractional ownership. In 2022, he explored selling up to 51% of the Pikachu Illustrator through Liquid Marketplace, a platform designed to let fans buy fractional stakes in high-value assets.

In the end, only 5.4% of the card was sold, raising roughly $270,000. Paul said he later repurchased that stake in May 2024 at the same valuation, in line with the platform’s terms, and made funds available for fractional holders to withdraw before the Pokémon card sale went through.

When Liquid Marketplace later went offline, Paul said he personally funded efforts to restore access so users could retrieve their balances—an unusual step that he framed as part of his responsibility as the card’s custodian.

By the time the final Pokémon card sale was executed, Paul said he held full ownership, clearing the way for a clean transfer to the new buyer.

What this means for the collectibles market

The $16.49 million Pokémon card sale lands at a time when the high-end trading card market is recalibrating after years of rapid growth. While prices for more common cards have cooled, ultra-rare, culturally significant pieces continue to command premium valuations.

Experts say the Pikachu Illustrator sale reinforces a two-tier market: one driven by speculation, and another driven by true scarcity and historical importance. In that sense, the Pokémon card sale may become a reference point for future valuations, much like iconic art auctions or record-setting sports memorabilia deals.

For Paul, the transaction represents both an exit and a validation. What began as a passion-driven purchase evolved into one of the most successful collectibles investments of the decade. For Pokémon, the Pokémon card sale cements its status not just as a beloved franchise, but as a serious player in the world of alternative assets.

“May the next Pokémon journey be as delightful as the last,” Paul wrote, signaling closure after a run that reshaped public perception of trading cards.

Whether this Pokémon card sale will ever be surpassed remains an open question. But for now, it stands as the defining moment in Pokémon collectibles history—and a clear signal that the rarest cards have entered a new financial stratosphere.

02/18/2026

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