Institutional demand for crypto remains resilient despite recent turbulence, with new data showing large investors preparing to increase allocations after the market’s sharp sell-off since October. Stablecoins are also gaining traction across retail and institutional channels as regulated products and real‑world‑asset models emerge. Meanwhile, crypto firms continue tapping traditional capital markets, exemplified by Abra’s planned public listing via a SPAC. Together, these developments suggest a market expanding through regulated pathways even as price volatility and regulatory uncertainty persist.
Institutional investors double down on crypto
Despite a roughly 40% crypto market decline since October, many institutional investors plan to boost exposure. A January survey of 351 investors by Coinbase and EY‑Parthenon found 73% intend to buy more digital assets this year and 74% expect prices to rise over the next 12 months. Bitcoin and Ether remain primary entry points, while interest in stablecoins and tokenized assets is growing. Two‑thirds of respondents prefer regulated vehicles such as exchange‑traded products, indicating capital is moving through structured, compliant channels despite market stress.
SBI rolls out retail USDC lending in Japan
SBI VC Trade is expanding stablecoin use in Japan by launching a retail USDC lending service after regulatory changes allowed licensed firms to handle foreign stablecoins like Circle’s USDC. The platform enables users to lend USDC for yield, marking one of Japan’s first retail‑facing stablecoin lending products within a regulated framework. The rollout underscores how stablecoins are moving from trading into regulated financial products in jurisdictions with legal clarity.
Abra targets Nasdaq listing through SPAC deal
Crypto wealth manager Abra plans to go public via a merger with New Providence Acquisition Corp., valuing the combined entity at about $750 million and targeting a Nasdaq listing under the ticker ABRX. Abra has repositioned toward wealth management—trading, custody and yield products—after regulatory challenges tied to earlier lending operations. Opting for a SPAC offers a faster route to public markets at a time when traditional IPO activity is limited, reflecting ongoing efforts by crypto firms to access public capital amid uneven regulatory conditions.
Theo launches $100M gold‑linked yield stablecoin vault
Tokenization platform Theo unveiled a $100 million vault for a gold‑linked, yield‑bearing stablecoin that ties the token’s value to gold while offering on‑chain returns. The hybrid model combines commodity backing with decentralized financial mechanisms, presenting an alternative to fiat‑backed stablecoins and illustrating broader experimentation with yield‑bearing stablecoins and real‑world asset tokenization.
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