J.P. Morgan 2026 Outlook: Investors are Seeking a More Friendly Regulatory Environment, Stablecoins Gaining Popularity in Financial Services
On January 3rd, JPMorgan noted in its "2026 Outlook" that competition between the U.S. dollar and digital assets is ramping up quickly.
The cryptocurrency market capitalization has now topped $4 trillion—up from just $2 trillion at the start of 2024. Investors are pushing for a more crypto-friendly regulatory landscape, particularly in the U.S.
Stablecoins are also gaining more traction in the financial services industry. While their transaction volume is surging rapidly, only around $700 billion in payments appear to be truly processed via stablecoin systems.
“Overall, we see digital assets growing in favor, partly driven by marginal demand for exploring U.S. dollar alternative solutions,” the firm added.
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Fidelity 2026 Outlook: More Countries May Adopt Bitcoin as Reserve Asset, Four-Year Cycle Disappearance Still TBD
On January 3, Fidelity said in its *2026 Crypto Market Outlook* that investors eyeing the market for short-term gains should exercise caution—but it’s not too late for those with a long-term mindset.
Fidelity Digital Assets Research VP Chris Kuiper noted: “Fidelity’s Digital Assets division thinks more countries could buy Bitcoin down the line, per game theory principles. If more nations add Bitcoin to their foreign exchange reserves, others may face pressure to follow suit amid competitive concerns. From basic supply and demand, extra Bitcoin demand could push prices higher—but the key is how much incremental demand there is, and whether other investors are selling or holding.”
Corporate crypto purchases have lifted market demand and boosted asset prices. But investors should note the risks, Kuiper warned: “If these firms choose to sell (or are forced to) amid a bear market, that could definitely pressure Bitcoin or other digital asset prices lower.”
Kuiper doesn’t think the
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Coinbase 2026 Outlook: DAT and Tokenomics Will Enter the 2.0 Mode, Predicting Further Market Trading Volume Expansion
On January 2, Coinbase Investment Research Director David Duong outlined key insights in the firm’s *2026 Market Outlook Report*:
U.S. economic resilience persists, with climbing labor productivity softening the blow of slowing growth. Coinbase thus views the H1 2026 crypto market as more “1996” than “1999” — a signal of optimism for the year ahead — while noting meaningful market uncertainty.
Clearer global regulatory frameworks will reshape institutions’ strategy, risk, and compliance approaches in 2026. Decentralized Finance (DeFi) grew its user base in 2025 but has recently undergone valuation-driven consolidation. A “DeFi 2.0” model is anticipated next year, with future iterations shifting focus from basic asset accumulation to professional trading, storage, and acquisition in sovereign block space — framing block space as a critical digital economy commodity.
As regulations become clearer, token holders’ economic interests will align with platform usage. Protocols are ev
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BlackRock 2026 Outlook: Stablecoins to Challenge Countries' Sovereignty Over Fiat, Becoming the Bridge Between Traditional Finance and Digital Liquidity
On January 2, BlackRock noted in its 2026 Global Market Outlook that stablecoins could challenge governments’ control over fiat currencies—with rapid adoption raising the risk of a contraction in fiat usage across emerging markets. Just ahead of that forecast, UK-based Standard Chartered warned in October that stablecoin proliferation could drive over $1 trillion in deposits out of emerging market bank accounts.
Similar risks are emerging in the U.S. banking sector. This July, a landmark stablecoin bill—the *Crypto for the People Act*—took effect, allowing crypto firms to offer quasi-yield products traditional banks are barred from providing, which threatens traditional financial firms. BlackRock Global Market Development Director Samara Cohen noted: “Stablecoins are no longer a niche product—they’re emerging as a bridge between traditional finance and digital liquidity.”
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Under Strict Regulations in Korea, Over $110 Billion in Crypto Assets Flows Out Overseas as Local Exchanges Struggle
**Crypto Funds Flowing Out of South Korea Hit $110B Last Year Amid Regulatory Gaps**
Per a joint report released Friday by Coingecko and Tiger Research, South Korean investors transferred over 160 trillion won ($110 billion) from domestic crypto exchanges to overseas platforms in 2023—driven by domestic regulatory curbs.
As one of Asia’s most active digital asset markets, South Korea has a relatively outdated regulatory framework. The long-awaited *Digital Assets Basic Law (DABA)*—landmark legislation intended to comprehensively regulate crypto trading and issuance—was delayed last December amid disagreements between regulatory bodies over stablecoin issuance. The *Virtual Asset User Protection Law*, scheduled to go into effect in 2024, fails to address market structural issues like leveraged trading or derivatives.
Regulatory gaps have sparked concerns: market participants fear South Korea’s centralized crypto exchanges are increasingly struggling to compete with overseas pla
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