Good morning Digital Asset investor,

What most people think is luck is just absolute conviction in disguise. Are we there? Let’s dive in!

Stocks, gold, and Bitcoin have all pushed higher after tariffs rattled the quarter’s opening weeks. Bitcoin even set a fresh record at ~$112K Meanwhile, the dollar continues to weaken, the Fed is still on hold, inflation is cooling but still above target, and the core macro data remain firm.

Global liquidity continued to surge since 2024, topping out near $178.6 trillion in early May. That flood of cash is still propping up risk assets, yet the outlook as we move toward Q3 is murkier.

Q2’s rally has leaned on a rare mix of hefty fiscal support and unusually low volatility, markets are pricing in a seamless shift to easier monetary policy. The FED will eventually adopt an easier stance and abundant liquidity will follow, but the journey will be uneven and unpredictable.

Remember Terraform labs “Mirror Finance”? (Do Kwon anyone?) Back in 2020 we were trading "mirrored" US stocks on the Terra network and well, they're back, Kraken’s launch of xStocks introduces tokenized U.S. equities like Apple, Tesla, and NVIDIA on the Solana blockchain, enabling 24/7 trading for non-U.S. clients, a move that bypasses traditional market hours and high brokerage fees.

"Every stock, every bond, every fund, every asset can be tokenized" –Larry Fink

Tokenization can unlock over $100 billion annually in capital by enhancing collateral mobility, with $255 trillion in securities currently underutilized for such purposes.

This initiative reflects a broader trend in real-world asset (RWA) tokenization, which grew 42.8% in market cap from $15.9 billion to $22.7 billion between January and May 2025, signaling crypto’s increasing integration with traditional finance.

Jamie Dimon, CEO of JPMorgan Chase, has historically been a vocal critic of Bitcoin, comparing it to a "pet rock" and accusing it of being a Ponzi scheme, yet his recent statement reflects a pragmatic shift as JPMorgan now allows clients to purchase Bitcoin, indicating a recognition of its growing mainstream acceptance despite his personal reservations.

Dimon's analogy of defending the right to buy Bitcoin while not endorsing its use mirrors his stance on smoking, suggesting a belief in personal freedom over regulatory restriction, which contrasts with his earlier criticisms and highlights a nuanced approach to controversial technologies.

The juxtaposition of Dimon's skepticism with JPMorgan's decision to facilitate Bitcoin transactions underscores the evolving financial landscape where traditional institutions are adapting to cryptocurrency, driven by client demand and the broader acceptance of digital assets, as evidenced by the increasing integration of Bitcoin into mainstream financial services.

JP Morgan, BofA, Well Fargo, and Citi –the 4 largest US banks– are reportedly discussing a joint stablecoin to counter the crypto industry's growing influence, as stablecoins—cryptocurrencies pegged to assets like the U.S. dollar—threaten to disrupt traditional banking by enabling faster, cheaper cross-border transactions (Source: Wall Street Journal, 2025-05-23).

The banks getting together to announce a joint stablecoin is just a move in an overall strategy that might lead to Tether and USDC being acquired by these large banks. The STABLE and GENIUS Acts construct barriers that make it so that only large, existing US financial institutions will be able to comply with the regulations.

Stablecoins, with a market cap exceeding $150 billion as of late 2024 (CoinMarketCap data), are gaining traction for their stability compared to volatile cryptocurrencies like Bitcoin, prompting banks to protect their dominance in the payment ecosystem.

Blockstream CEO, Adam Back, discusses the potential impact of large-scale Bitcoin adoption by countries and corporations, stating that those who ignore Bitcoin may lose economic relevance over time due to its growing influence as a store of value.

The discussion is contextualized by recent events, such as U.S. Senator Cynthia Lummis's proposal to establish a strategic Bitcoin reserve, which aims to acquire 1 million Bitcoin over a period, mirroring the size and scope of U.S. gold reserves, indicating a shift in institutional attitudes towards Bitcoin.

The narrative is further supported by the SEC's decision to allow Dell to dismiss a shareholder proposal for Bitcoin evaluation, highlighting the ongoing debate and varying corporate strategies regarding Bitcoin investment, amidst a backdrop where companies like Berkshire Hathaway hold significant cash reserves, potentially influencing their future decisions on digital assets.

Follow this space to receive the latest Digital Assets intelligence updates as this trends accelerate. See you next week. —DWI

Disclaimer: This content is for information and education purposes only and it is not intended to serve as investment, financial, tax or legal advice. Do your own research before investing.