Key Takeaways
- • Grayscale research head Zach Pandl argued on Oct. 28 that BlackRock, JPMorgan, and Visa are embedding digital assets in mainstream finance, supporting crypto's prospects regardless of the U.S. midterm election outcome.
- • Visa reported on its Oct. 27 earnings call that annualized stablecoin settlement volume surpassed $25 billion, up tenfold year over year, across 10 blockchains.
- • BlackRock's European tokenized fund share classes opened to eligible investors on Aug. 4 using JPMorgan's Kinexys blockchain business to issue shares on Ethereum.
- • JPMorgan Asset Management expanded tokenized money market funds to Solana on Oct. 22, including the registered government money market fund JLTXX designed to support stablecoin issuers' reserve needs.
- • Grayscale estimates 80%-85% of global crypto activity occurs overseas, and cites the GENIUS Act and persistent federal debt growth as structural support for digital assets.
Summary
Grayscale argued on Oct. 28 that BlackRock, JPMorgan, and Visa are embedding digital assets in mainstream finance, bolstering crypto's outlook regardless of the outcome of the U.S. midterm elections. Zach Pandl, head of research at the digital asset manager, also cited Franklin Templeton, Mastercard, Fiserv, and Stripe as evidence of institutional adoption. Pandl wrote that "Crypto is institutional" and that public blockchain technology is now more deeply embedded in the mainstream financial system.
BlackRock (NYSE: BLK) made its European tokenized fund share classes available to eligible investors on Aug. 4, offering blockchain-based versions of existing cash-management strategies. The offering uses Kinexys, JPMorgan's blockchain business, to issue and manage digital fund shares on Ethereum, while official ownership records remain maintained through the funds' transfer agent infrastructure. BlackRock's cash business also introduced two tokenized money market products in August, one adding a tokenized share class to an existing fund and the other targeting digitally native institutional investors. Their potential uses include managing reserves that support payment stablecoins.
JPMorgan Chase's (NYSE: JPM) asset management business expanded tokenized money market funds to Solana on Oct. 22. The MONY private fund serves qualified investors, while JLTXX is a registered government money market fund designed to support stablecoin issuers' reserve needs. Both are accessible through Morgan Money.
Visa (NYSE: V) reported during its Oct. 27 earnings call that annualized stablecoin settlement volume had surpassed $25 billion, up tenfold year over year, according to CEO Ryan McInerney. That compares with the $7 billion annualized run rate the company disclosed on April 29, when its pilot supported nine blockchains. Visa Direct's stablecoin prefunding entered commercial production on Oct. 15 through Inyo Global, allowing eligible businesses to fund payouts with USDC in near real time. A separate seven-day trial with Lloyds Banking Group settled $750,000 in payment obligations with Visa using USDC, with funds reaching Visa in under an hour, including over a weekend.
Pandl acknowledged that elections can affect crypto at the margin but argued that international demand and bipartisan participation underpin the outlook. Grayscale estimates that 80%-85% of global activity occurs overseas. Domestically, Pandl cited bipartisan passage of the GENIUS Act, which establishes a payment stablecoin framework covering reserves, redemptions, and disclosures, along with earlier congressional votes during the Biden administration. He also argued that federal government debt will likely keep growing regardless of congressional makeup, driving investors toward alternative stores of value including cryptocurrencies.
BlackRock (NYSE: BLK) made its European tokenized fund share classes available to eligible investors on Aug. 4, offering blockchain-based versions of existing cash-management strategies. The offering uses Kinexys, JPMorgan's blockchain business, to issue and manage digital fund shares on Ethereum, while official ownership records remain maintained through the funds' transfer agent infrastructure. BlackRock's cash business also introduced two tokenized money market products in August, one adding a tokenized share class to an existing fund and the other targeting digitally native institutional investors. Their potential uses include managing reserves that support payment stablecoins.
JPMorgan Chase's (NYSE: JPM) asset management business expanded tokenized money market funds to Solana on Oct. 22. The MONY private fund serves qualified investors, while JLTXX is a registered government money market fund designed to support stablecoin issuers' reserve needs. Both are accessible through Morgan Money.
Visa (NYSE: V) reported during its Oct. 27 earnings call that annualized stablecoin settlement volume had surpassed $25 billion, up tenfold year over year, according to CEO Ryan McInerney. That compares with the $7 billion annualized run rate the company disclosed on April 29, when its pilot supported nine blockchains. Visa Direct's stablecoin prefunding entered commercial production on Oct. 15 through Inyo Global, allowing eligible businesses to fund payouts with USDC in near real time. A separate seven-day trial with Lloyds Banking Group settled $750,000 in payment obligations with Visa using USDC, with funds reaching Visa in under an hour, including over a weekend.
Pandl acknowledged that elections can affect crypto at the margin but argued that international demand and bipartisan participation underpin the outlook. Grayscale estimates that 80%-85% of global activity occurs overseas. Domestically, Pandl cited bipartisan passage of the GENIUS Act, which establishes a payment stablecoin framework covering reserves, redemptions, and disclosures, along with earlier congressional votes during the Biden administration. He also argued that federal government debt will likely keep growing regardless of congressional makeup, driving investors toward alternative stores of value including cryptocurrencies.
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