BNY is to tokenize institutional cash deposits for real-time on-chain settlement between industry participants.
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The US bank has taken the first step in its strategy to tokenize deposits by enabling the on‑chain mirrored representation of client deposit balances on its Digital Assets platform.
Beginning with collateral and margin workflow use cases, the launch extends BNY’s cash capabilities by creating on-chain digital book entries that represent participating clients’ existing demand deposit claims against the bank.
The capability operates on BNY’s private, permissioned blockchain and is governed by the company’s established risk, compliance, and control frameworks. Client balances continue to be recorded on BNY’s traditional systems to maintain regulatory and reporting integrity.
BNY describes tokenized deposits as as the ‘connective tissue’ supporting the merger of traditional banking infrastructure with emerging digital rails, including stablecoins and tokenized money market funds.
Carolyn Weinberg, chief product and innovation officer, BNY, comments: “As institutional markets move toward always on operating models, BNY is committed to innovating and helping define how cash moves across the modern financial system. Tokenized deposits provide us with the opportunity to extend our trusted bank deposits onto digital rails — enabling clients to operate with greater speed across collateral, margin, and payments, within a framework built for scale, resilience, and regulatory alignment.”
Early participants in the initiative include a wide range of prominent financial institutions and digital natives, including Anvchorage Digital, Circle, Digital Asset, Baillie Gifford, Citadel Securities, DRW Holdings, Galaxy, Paxos and Ripple Prime among others.
Coinbase, one of the largest U.S.-based crypto exchanges, may withdraw its support for the CLARITY Act if the bill imposes restrictions on stablecoin reward programs, according to a Bloomberg report.
The warning comes as Congress prepares to mark up the legislation in the Senate this week, setting up a potential clash between regulators and one of crypto’s most prominent companies.
For Coinbase, stablecoin rewards are not a minor perk — they are a core part of its revenue model. The exchange shares in interest income generated from reserves backing USD Coin (USDC), the widely used stablecoin issued by Circle, in which Coinbase owns a minority stake. Part of that income is used to offer incentives to users, including roughly 3.5% rewards for Coinbase One customers.
These programs encourage users to keep USDC on the platform, creating a predictable revenue stream even when trading activity slows. Bloomberg estimates that stablecoin-related revenue may have reached around $1.3 billion in 2025.
The heart of the debate is whether these rewards resemble traditional banking products, such as interest-bearing accounts, or whether they are consumer incentives that belong in a crypto-specific regulatory framework.
Some banking groups argue that allowing yield on stablecoins could pull deposits away from traditional banks, potentially reducing lending to households and small businesses.
The act is expected to be marked up this week on January 15. This ongoing issue could have broad effects on the bitcoin and crypto space.
Coinbase: Stablecoin rewards are under threat
Coinbase and other crypto advocates counter that treating rewards like bank interest would stifle innovation, make U.S. platforms less competitive globally, and risk pushing users offshore.
Coinbase’s stance illustrates the broader tension between lawmakers seeking investor protection and companies trying to maintain viable business models in the emerging crypto sector.
While the CLARITY Act aims to clarify market structure rules for digital assets — defining categories like digital commodities, investment contracts, and payment stablecoins— it also signals Congress’s growing interest in stablecoin oversight and decentralized finance.
The timing is significant. The Senate Banking Committee will soon review the bill, and its final provisions could shape the future of U.S. crypto policy. Coinbase’s potential withdrawal of support is somewhat of a negotiation tactic and it reflects how critical stablecoin yield programs have become for regulated exchanges.
Limiting these incentives could reduce adoption of U.S.-based platforms and slow mainstream engagement with digital currencies.
The dispute also highlights the human element of regulation. Companies like Coinbase are balancing compliance, investor expectations, and global competitiveness, while lawmakers weigh the need for oversight against the risk of stifling innovation.
Coinbase has not made an official statement, but insiders speaking to Bloomberg suggest the exchange is carefully evaluating whether the final text will allow it to continue offering rewards while staying aligned with U.S. law.
Paul Atkins, chair of the US Securities and Exchange Commission (SEC), didn’t rule out the possibility of authorities seizing Venezuela’s reported Bitcoin holdings after US forces unseated and captured the country’s president.
In a Monday interview with Fox Business’ Stuart Varney, Atkins responded to reports claiming that Venezuela holds up to $60 billion worth of Bitcoin (BTC), though several analysts said they were unable to verify these claims. The SEC chair said it “remains to be seen” what action, if any, the US would take if it had the opportunity to seize the reported 600,000 BTC.
“I leave that to others in the administration to deal with — I’m not involved in that,” said Atkins in response to a question on whether the US would “take those Bitcoin off ‘em.”
Reports of Venezuela’s Bitcoin holdings surfaced after US forces, at the direction of President Donald Trump, captured then-President Nicolás Maduro last week and removed him to the United States to face criminal charges in New York.
Related: US crypto stocks soar double-digits as major tokens rally
As of the time of publication, blockchain analysts and intelligence platforms had not confirmed the reported $60 billion in crypto, but the Maduro regime had previously been involved with aspects of the industry. For example, the country launched an oil-backed digital currency in 2018.
Senate to hold market structure markup on Thursday
Atkins’ remarks came a few days before the US Senate Banking Committee is scheduled to hold a markup on the Digital Asset Market Clarity Act, or CLARITY.
House of Representatives lawmakers passed the bill in July, and it has been under review in the Senate for months, likely slowed by a 43-day government shutdown in October and November.
Banks and some crypto companies have also expressed concerns about provisions dealing with stablecoin rewards within the draft bill, and many Democrats are reportedly calling for stronger ethics guardrails and clarification on decentralized finance.
The bill could be delayed amid campaigning for the 2026 midterm elections and another potential government shutdown at the end of January. However, early drafts of the legislation showed lawmakers were attempting to give the Commodity Futures Trading Commission more authority to regulate digital assets.
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026
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Ethereum needs to get to a point where its value proposition remains even if developers stop active work on the protocol, according to its co-founder Vitalik Buterin.
“We must get to a place where Ethereum’s value proposition does not strictly depend on any features that are not in the protocol already,” said Buterin in a post to X on Monday.
He said Ethereum protocols should aspire to be like hammers: once purchased, they remain usable, unlike services that lose functionality when a vendor walks away.
Source: Gabriel Shapiro
While Ethereum has a long technical roadmap ahead, the network needs to reach a point where its core features are fully in place, and builders can ossify if they choose, Buterin said.
“Being able to say ‘Ethereum’s protocol, as it stands today, is cryptographically safe for a hundred years’ is something we should strive to get to as soon as possible,” he added.
Vitalik Buterin’s seven areas of improvement
To achieve this, Buterin called for a full quantum-resistance solution to secure Ethereum against future cryptographic threats, while a scalable architecture, including Zero-Knowledge Ethereum Virtual Machines (ZK-EVM) and Peer Data Availability Sampling (PeerDAS), would enable Ethereum to handle thousands of transactions per second.
Buterin added a general-purpose account model for signature validation, a robust gas schedule free of security vulnerabilities, and a block-building model that can resist centralization and censorship pressures, will also crucial to ensure Ethereum stands the test of time.
“Every year, we should tick off at least one of these boxes, and ideally multiple,” in order to “maximize Ethereum’s technological and social robustness for the long term,” he said.
Last week, Buterin said implementing ZK-EVM validation and PeerDAS solutions would give Ethereum greater decentralization, consensus, and high bandwidth — better positioning it to solve the blockchain trilemma that has long forced projects to sacrifice one for the others.
The Splurge part of the Ethereum technical roadmap seeks to implement cryptography solutions that make the network resistant to quantum attacks. No solution has been fully rolled out yet, however.
Related: Bank of Italy models Ethereum risks if ETH value collapsed
“Ideally, we do the hard work over the next few years, to get to a point where in the future almost all future innovation can happen through client optimization, and get reflected in the protocol through parameter changes,” said Buterin.
Ethereum needs better decentralized stablecoins
On Sunday, Buterin also argued that Ethereum needs better decentralized stablecoins to give people greater independence from the traditional finance system.
He suggested a stablecoin backed by a diversified basket of assets and currencies, rather than relying solely on one, like the US dollar, so its stability isn’t dependent on a single nation.
Magazine: One metric shows crypto is now in a bear market: Carl ‘The Moon’
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
WTW (Willis Towers Watson, NASDAQ: WTW) has today announced the launch of the Radar Connector for Databricks, a significant addition to WTW’s market-leading end-to-end insurance analytics and pricing platform. The new integration allows Radar users to connect securely with Databricks – eliminating manual data movement, accelerating analysis and improving governance.
The integration between WTW Radar and Databricks enables Radar to access data by selecting Databricks as a data source and to retrieve data straight from the Databricks Data Intelligence Platform in a single step. After completing their analysis, users can directly transfer results back into Databricks. These activities can also be completed as part of automated processes.
The Radar Connector for Databricks offers a faster, smoother and more efficient solution. The total turnaround time for a data update can now be completed within minutes, resulting in a significant efficiency gain.
Chris Halliday, Senior Director in WTW’s Insurance Consulting and Technology practice, said: “The integration of Radar with Databricks gives a more efficient experience for insurers. Combining this with Radar’s existing capability to deploy Databricks machine learning models means Radar users can benefit from Databricks’ data and AI infrastructure capabilities.”
Marcela Granados, Global Head of Insurance, Databricks, said: “With Databricks, insurers can unify all their data – structured or unstructured – into a single, governed environment ready for Radar analysis. This integration turns that data into immediate, actionable insights by connecting Radar’s advanced pricing models directly to Databricks Agent Bricks with unified governance powered by Unity Catalog. The result is faster decisions, stronger compliance and the agility to innovate confidently in a highly regulated industry.”
With Databricks, insurers can ingest and prepare data from any source, manage data quality and lineage through Unity Catalog, and apply AI-driven insights across the business. Radar outputs can then flow back into Databricks for enterprise-wide sharing, visualisation and exploration through tools like AI/BI Genie and Agent Bricks. Together, WTW and Databricks are enabling insurers to unify their data, analytics and AI – creating a secure, governed and intelligent ecosystem that powers faster, smarter pricing decisions.
Institutional investors selling Bitcoin is visible through the Bitcoin ETFs recording $1.38 billion in net outflows across four trading sessions.
BTC futures data shows a neutral 5% basis rate, well below the 10% level that typically defines a true bullish breakout.
Bitcoin (BTC) price briefly jumped above $92,000 on Monday after US federal prosecutors opened a criminal investigation into Federal Reserve Chair Jerome Powell. Despite the odd outcome, Bitcoin traders remain skeptical due to exchange-traded fund outflows and weak demand for bullish leveraged BTC positions.
Bitcoin/USD vs. gold and silver. Source: TradingView
Despite the recent rebound, Bitcoin is still down 23% since October 2025, while gold and silver reached all-time highs in 2026. This divergence has led traders to question whether the digital store-of-value narrative is losing strength. As a result, even if Bitcoin rallies another 14% toward $105,000, investors may hesitate to turn bullish, particularly as analysts grow less confident that the US will deliver further economic stimulus in the near term.
Goldman Sachs no longer expects an interest rate cut in March, citing sticky inflation and resilient labor market data despite temporary slowdowns. US President Donald Trump has openly criticized the Fed for keeping interest rates elevated, even as inflation remained above the 2% target throughout the second half of 2025. Powell’s time as Fed chair ends in April, opening the door for a successor potentially more inclined toward looser monetary policy.
Powell is being investigated over the Fed’s building renovation project, prompting analysts to question whether central bank independence could be at risk—a scenario that could favor alternative scarce assets such as Bitcoin. Powell said the action should be viewed within the broader context of the Trump administration’s threats.
Bitcoin fails to hold $94,000 despite major corporate buying
Even as Bitcoin reclaimed $91,000 on Monday, traders showed little interest in turning bullish, according to BTC derivatives data.
Bitcoin’s risk profile appears largely unchanged by the power struggle between the Fed and the Trump administration, as the BTC futures annualized premium, or basis rate, remained near a neutral-to-bearish 5%. Periods of bullish sentiment are typically characterized by BTC futures trading at a 10% premium or more relative to spot markets.
More importantly, Bitcoin spot ETFs recorded $1.38 billion in net outflows across four consecutive trading days. Even more concerning, Bitcoin has been unable to sustain levels above $94,000 over the past month, despite Strategy (MSTR US) adding $1.25 billion worth of BTC. The company led by Michael Saylor announced on Monday its largest Bitcoin purchase since July 2025.
Related: Bitcoin to hit $2.9M by 2050 as it muscles into global trade–VanEck
While Bitcoin may function as an alternative hedge to the traditional financial system, there is little evidence that a confidence crisis in the US dollar is unfolding. Despite the $601 billion fiscal deficit recorded in the final three months of 2025, the US government debt has retained its investment-grade status. Meanwhile, yields on the 5-year Treasury have remained below 3.8% over the past couple of months.
US Dollar Strength Index (left) vs. US 5-year Treasury Yield. Source: TradingView
If traders were bracing for an imminent economic downturn, the US dollar would likely have weakened against a basket of foreign currencies, as measured by the DXY index. Instead, the US Dollar Strength Index rebounded to 99 from a 96.7 low in late November 2025. As a result, there is currently no clear evidence of a debasement trade, despite the strong rally in precious metals.
Ultimately, the appeal of Bitcoin and cryptocurrencies remains subdued, as reflected in ETF flows and muted demand for leveraged BTC positions, suggesting relatively low odds of a surprise rally toward $105,000 in the near term.
This article is for general information purposes and is not intended to be and should not be taken as, legal, tax, investment, financial, or other advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
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Bitcoin is attempting to stabilize above the $90,000 level as markets digest fresh comments from Jerome Powell, which briefly reintroduced macro uncertainty into an already fragile environment. Powell’s remarks reinforced the Federal Reserve’s commitment to policy independence and data-driven decisions, a message that rattled risk assets after weeks of consolidation.
Bitcoin reacted with a short burst of volatility, slipping from local highs before finding tentative support near the $90K zone. While the move was not structurally destructive, it underscored how sensitive BTC remains to shifts in macro narratives.
Beyond the headline-driven reaction, on-chain data suggests that underlying demand remains subdued. According to an analysis by Darkfost, current conditions do not yet resemble the extreme weakness typically seen at the early stages of a full bear market.
However, demand has clearly softened compared to prior expansion phases. The focus is on a metric that compares new Bitcoin issuance with supply that has remained inactive for more than one year, a framework used to estimate so-called “apparent demand.”
When this ratio falls below zero, it indicates that long-term dormant supply entering the market outweighs new demand, signaling net selling pressure. When it moves above zero, demand is considered positive and absorption is occurring.
At present, the indicator remains weak, suggesting that while panic is absent, conviction from buyers is still limited. As Bitcoin hovers above $90,000, the balance between macro uncertainty and on-chain demand will likely define the next decisive move.
Demand Weakness Signals Caution, Not Capitulation
Currently, Bitcoin’s apparent demand remains firmly negative, with roughly −106,000 BTC on a 30-day cumulative basis. This reading confirms that more supply is entering the market than is being absorbed by new buyers, a dynamic typically associated with cautious positioning rather than aggressive accumulation. Investors appear risk-averse, gradually reducing exposure as Bitcoin continues to be treated as a high-beta asset sensitive to macro uncertainty and policy signals.
Bitcoin Apparent Demand | Source: CryptoQuant
This negative demand environment reflects a market that is defensive but not panicked. There is no evidence of forced liquidation or broad capitulation; instead, the data points to controlled distribution and a lack of urgency from buyers. In practical terms, participants are waiting for clearer confirmation—either from macro conditions, price structure, or on-chain metrics—before committing fresh capital.
Importantly, history shows that periods of weak or negative demand often coincide with zones where long-term opportunities begin to form. When interest is low and sentiment is muted, prices tend to stabilize rather than trend aggressively, allowing patient investors to build positions with reduced competition. However, these conditions favor long-term, risk-managed strategies, not short-term speculation.
Betting aggressively against the prevailing demand trend remains risky. As long as apparent demand stays negative, upside moves are more likely to be corrective rather than impulsive. For now, Bitcoin sits in a phase where discipline matters more than conviction, and time—not momentum—becomes the primary ally.
Bitcoin Consolidates as Long-Term Support Holds
Bitcoin continues to consolidate after the sharp correction from the October highs, with price now stabilizing around the $90,500–$91,000 area. On this 3-day chart, BTC remains below its declining short- and medium-term moving averages, signaling that bearish momentum has not fully dissipated. The blue and green moving averages above price continue to act as dynamic resistance, capping upside attempts near the $94,000–$96,000 zone.
BTC consolidates in a range | Source: BTCUSDT chart on TradingView
At the same time, the long-term trend structure has not broken. Bitcoin is still holding above the red long-term moving average, which is rising steadily and currently sits in the $88,000–$89,000 region. This level has acted as structural support during the recent consolidation, suggesting that sellers are losing strength as price compresses into a tighter range.
Price action over the past weeks shows lower volatility and overlapping candles, typical of a market transitioning from impulse to balance. Volume has also declined, reinforcing the idea that aggressive selling pressure has faded, but that buyers remain cautious and selective.
As long as BTC holds above the long-term moving average, this phase looks more like consolidation than trend reversal. However, a sustained reclaim of the $94,000–$96,000 resistance is required to confirm renewed upside momentum. Until then, Bitcoin remains range-bound, building energy for the next decisive move.
Featured image from ChatGPT, chart from TradingView.com
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