Building Blocks #65

Birds Eye View (vs Last 7 Days)

💵 Overall Crypto Market Cap: ≈ $3.2 T

🔶 BTC Dominance: ≈ 57.1 %

💵 Price Snapshot:

🟠 Bitcoin: ≈ $91,470

🔵 Ethereum: ≈ $3,117

⚫ XRP: ≈ $2.05

UAE's dirham stablecoin landscape expands as RAKBank secures preliminary approval

RAKBank's preliminary authorization from the UAE Central Bank to introduce a dirham-pegged stablecoin marks the entry of another domestic financial institution into the UAE's stablecoin arena.

The National Bank of Ras Al Khaimah (RAKBank) is set to enter the United Arab Emirates' (UAE's) rapidly growing stablecoin sector following its receipt of preliminary approval on Wednesday from the Central Bank of the United Arab Emirates (CBUAE) to issue a payment token backed by UAE dirhams.

The preliminary approval indicates CBUAE's conditional acceptance of RAKBank's stablecoin initiative, subject to meeting final regulatory and operational requirements. The bank, which already operates under CBUAE's license and supervision, must fulfill these conditions before launching.

According to a Wednesday press release shared with Cointelegraph, the upcoming stablecoin will maintain a full 1:1 backing with dirhams stored in dedicated, regulated accounts and will be managed through audited smart contracts with continuous reserve verification.

This stablecoin initiative represents a new chapter in RAKBank's digital assets strategy, following its 2025 initiative to enable retail customers to trade cryptocurrencies through an authorized brokerage partner.

Raheel Ahmed, RAKBank's group CEO, described the preliminary approval from CBUAE as a "crucial step" in the bank's digital assets journey, emphasizing their commitment to "innovation that is responsible, regulated, and founded on trust."

UAE's multi-pillar digital asset regime

The UAE has established a comprehensive digital assets regulatory framework, with multiple regulatory bodies including the CBUAE, Abu Dhabi Global Market, Dubai's Virtual Assets Regulatory Authority, and other agencies crafting specific regulations for stablecoins, virtual asset service providers, and tokenized financial instruments.

Within this regulatory environment, dirham-backed payment tokens are designed to enhance domestic payment systems, bolster digital economy initiatives, and streamline cross-border transactions in a market with significant remittance activity.

Beyond crypto-natives: UAE's stablecoin map

The UAE's stablecoin ecosystem has expanded beyond its initial crypto-native participants and international issuers.

Telecommunications leader e& (formerly Etisalat) is testing a regulated dirham stablecoin for payment processing under the AE Coin initiative, while international entities like Circle and Ripple have obtained regulatory approvals in Abu Dhabi for USDC

USDC$1 and Ripple USD RLUSD$1, respectively, focusing on institutional applications and regional growth.

Ras Al Khaimah, RAKBank's home emirate, is actively developing its position as a specialized Web3 and digital economy center through RAK DAO, implementing a DARe framework to provide DAOs with legal recognition and launching a "Builder's Oasis" accelerator supported by a $2 million fund for AI, gaming, and blockchain ventures.

Open questions on rails and adoption

However, several uncertainties remain. The specific blockchain infrastructure for the token, its compatibility with existing global stablecoin networks, and the interaction between UAE federal and free-zone regulations once banks begin conducting real-world transactions onchain are yet to be determined.

Most crucially, market adoption remains a significant challenge. While regulatory bodies and financial institutions are preparing for a token-based future, widespread adoption will require tangible product implementations and compelling financial incentives to encourage businesses and individuals to integrate dirham stablecoins into their daily treasury operations, remittance activities, and payment systems.

3 'milestones' must be achieved for crypto to reach peak levels in 2026: Bitwise

Bitwise's Matt Hougan indicates that market recovery after October's sell-off, successful CLARITY Act implementation, and stable stock performance are essential for crypto to achieve record levels.

Three critical benchmarks need to be met for cryptocurrency markets to reach unprecedented heights in 2026, including crucial US Senate approval of a pending crypto legislation, according to Bitwise chief investment officer Matt Hougan.

"Cryptocurrency has begun 2026 on a positive note," Hougan stated in a Tuesday report, while noting that "three significant barriers remain between current levels and record highs."

Markets show a 2% decline in the last 24 hours, yet have increased by 5.6%, equivalent to roughly $170 billion, since the year's start, driving total market value to a seven-week peak of $3.3 trillion on Wednesday.

Hougan referenced the October 10 market downturn, which eliminated $19 billion in futures positions within 24 hours, sparking concerns about potential major market maker or hedge fund closures.

"These possible liquidations loomed over the market like a dark cloud," hindering price growth in late 2025, he explained.

CLARITY Act advances in Congress

The US Senate aims for a January 15 markup of the CLARITY Act, involving coordination between Senate Banking and Agriculture committees before advancing to a final vote.

"The CLARITY Act's approval is crucial for cryptocurrency's future in the US [and would] establish fundamental principles in law while creating a solid foundation for growth," Hougan explained.

The final "milestone" requires stability in the broader equity markets. While cryptocurrency isn't strongly linked to stocks, "a significant market decline would impact all risk assets temporarily, including crypto," Hougan noted.

Accommodative Fed policies support extended growth

While Hougan didn't discuss US central bank monetary policy, interest rate reductions, or liquidity as potential market catalysts, others have highlighted these factors.

"The 2026 general outlook suggests US economic expansion, driven by fiscal policy and Fed accommodation," Jurrien Timmer, Fidelity's global macro director, commented Wednesday.

The Federal Reserve has indicated no immediate plans for rate reduction before its January 28 meeting, according to Nick Ruck, LVRG Research director, in his statement to Cointelegraph.

South Korea to permit business cryptocurrency investments: Report

South Korea's FSC is set to issue guidelines enabling listed firms to invest up to 5% of their equity in the leading 20 cryptocurrencies, ending restrictions from 2017.

South Korea's Financial Services Commission (FSC) is reportedly revising its policies to enable businesses to invest in digital currencies following a nine-year restriction period.

Public companies and qualified investors will be permitted to allocate up to 5% of their equity funds to cryptocurrency investments, reported Seoul Economic Daily in its Sunday coverage.

The report cites a high-ranking FSC representative with knowledge of the situation stating that authorities will "publish definitive guidelines in January [or] February and permit digital currency trading for investment and financial objectives by registered entities."

This decision reverses a nine-year restriction on corporate cryptocurrency investment implemented in 2017, when financial regulators prohibited institutional involvement due to money laundering risks.

However, investment options will be restricted to the top 20 cryptocurrencies by market value and must be conducted through Korea's five authorized trading platforms.

The potential inclusion of dollar-linked stablecoins like Tether's USDT USDT$1 remains under consideration, according to the report.

The FSC presented these updated guidelines to its cryptocurrency task force on Jan. 6 and initially revealed plans for a gradual approach to relaxing corporate cryptocurrency investment rules in February 2025.

Expected positive impact on Korean markets

The policy shift could inject dozens of trillions of won into cryptocurrency markets. Korean tech leader Naver, with 27 trillion won ($18.4 billion) in equity capital, could potentially acquire 10,000 BTC, the report indicates.

It mentioned that the development of a domestic stablecoin and spot Bitcoin ETFs is likely to progress once corporate investment capacity is established. While ETF support grows nationwide, regulatory approval remains pending.

The change could foster growth in local cryptocurrency firms, blockchain ventures, and digital asset treasuries (DATs) while strengthening domestic digital asset investment.

Major Korean companies have been investing abroad to circumvent local restrictions, the report added.

CBDC and stablecoins central to economic plan

The publication reported Friday that Korean officials announced a comprehensive digital currency strategy aiming to process 25% of all national treasury transactions through a central bank digital currency (CBDC) by 2030.

The plan, part of the 2026 Economic Growth Strategy, includes establishing a licensing framework for stablecoin providers, such as Tether, mandating full reserve asset backing and legally protecting users' redemption rights.

Barclays enters stablecoin sector with Ubyx investment

Barclays has taken a stake in Ubyx, a US-based stablecoin settlement platform, signaling its first significant entry into regulated digital currencies and tokenized financial operations.

Barclays, ranked among the largest banks globally and recognized as a crucial player in international finance, has made its inaugural investment in a company operating in the stablecoin space.

The British banking giant announced Wednesday its investment in Ubyx, an American stablecoin clearing platform that seeks to bridge regulated token issuers with banking institutions and fintech firms. The investment amount remained undisclosed by Barclays.

"In the evolving ecosystem of tokens, blockchains and digital wallets, specialized technology will be crucial in providing the connectivity and infrastructure needed for regulated financial institutions to operate smoothly," stated Ryan Hayward, who leads digital assets and strategic investments at Barclays.

This investment follows Ubyx's successful $10 million seed round in June 2025, which drew support from notable backers including the venture divisions of Michael Novogratz's Galaxy and Coinbase, the prominent US cryptocurrency exchange.

Ripple, Paxos among key partners

Ubyx launched in March 2025 under the leadership of Tony McLaughlin, a payments industry expert with over two decades of experience at Citi overseeing payment operations and cash management.

McLaughlin, who identifies as a "tokenized money maximalist" on LinkedIn, has emphasized the increasing significance of tokenized financial services.

"We aim to establish a unified global network for regulated digital money, encompassing tokenized deposits and regulated stablecoins," McLaughlin explained.

"We're transitioning to an era where regulated entities will provide digital wallets alongside conventional banking services," he noted.

During its 2025 seed funding announcement, Ubyx revealed that its platform was created to facilitate widespread stablecoin adoption, including tokens from major providers like Ripple, Paxos, AllUnity and Eurodollar.

Barclays makes first stablecoin investment

According to Reuters coverage, Barclays' Ubyx investment marks its first venture into a stablecoin-related enterprise.

"This investment reflects Barclays' strategy to explore possibilities in new digital money forms, including stablecoins," the bank stated, keeping the investment amount private.

This move represents a significant change in Barclays' crypto stance, following years of expressing concerns and limiting certain crypto-related activities.

In June 2025, Barclays announced plans to stop crypto purchases via Barclaycard credit cards, citing cryptocurrency price volatility as the reason.

Visa-partnered stablecoin platform Rain secures $250M investment at $1.95B valuation

The investment positions Rain at a $1.95 billion valuation following its remarkable 30-fold card expansion in 2025, as the Visa-partnered platform sets sights on worldwide expansion.

Rain, a stablecoin infrastructure company based in the US and principal member of Visa's payment network, has obtained substantial funding to broaden its international operations.

The company secured $250 million in Series C funding with global investment powerhouse Iconiq leading the round, according to Friday's announcement.

The investment values Rain at $1.95 billion, pushing its total funding to $338 million, following its $58 million Series B round in August 2025 and previous $24.5 million raise in March last year.

The funding round included participation from existing backers, such as Michael Novogratz's Galaxy Digital venture arm, Sapphire Ventures, Dragonfly, Lightspeed, Norwest and Endeavor Catalyst.

Rain's active card base surged 30x in 2025

The latest funding follows significant expansion at Rain last year, with its active card usage growing 30-fold and yearly payment volume increasing 38 times, stated co-founder and CEO Farooq Malik in the announcement.

"Stablecoins are emerging as the future of monetary transactions, but worldwide adoption requires seamless card and app functionality," he stated.

The funding round also saw participation from Bessemer Venture Partners and FirstMark, as mentioned in the announcement.

Rain eyes expansion across the Americas, Europe, Asia and Africa

Based in New York, Rain provides a comprehensive payments platform enabling businesses to partner with a single provider to launch regulation-compliant stablecoin cards accepted wherever Visa payments work.

The platform supports leading stablecoins, including USDt USDT$1 and USDC USDC$1, alongside various blockchain networks, such as Ethereum, Solana, Tron, Stellar and others.

Rain intends to utilize the new capital to strengthen its presence in strategic markets across North America, South America, as well as Europe, Asia and Africa.

The funding will also support Rain's expansion of its stablecoin payments infrastructure, including potential strategic acquisitions.

"This investment enables us to extend our infrastructure to new markets and assist more enterprises in launching and scaling rapidly across locations," Malik explained.

BNY introduces digital deposit tokens as traditional finance embraces blockchain technology

The offering is now accessible to institutional customers through the bank's private blockchain platform, BNY announced on Friday.

BNY, a prominent financial institution with historical ties dating back to America's earliest banking establishments, debuted digital deposit tokens for its institutional customers on Friday.

Digital deposit tokens represent digital cash holdings or customer claims against a banking institution. BNY will distribute these digital deposit tokens via its proprietary private blockchain system, as stated in their press release.

The digital deposits will facilitate collateral and margin requirements, with plans for expanded capabilities in the future, BNY explained, stating:

BNY's initiative represents the newest blockchain-related advancement from a major financial entity, as traditional banking institutions and established financial players modernize conventional financial systems to address digital era requirements.

SEC suggests transition to continuous capital markets

In September 2025, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a combined announcement proposing a transition to round-the-clock capital markets.

"Extending trading hours further could help US markets align better with today's global, always-active economy," the announcement indicated.

Traditional finance depends on numerous intermediaries and stops operating during nights, weekends, and specific holidays, preventing investors and traders from adjusting positions during market closures.

Blockchain technology eliminates intermediaries and operates continuously, minimizing settlement periods, transaction expenses, and barriers in international trade.

Traditional asset digitization (RWA), which involves creating blockchain representations of physical or conventional assets, enables non-stop capital markets across various asset types, including traditionally static assets like property and collectibles.

The SEC and CFTC recognized that continuous digital markets and asset digitization are more "feasible" for certain asset categories than others, noting that a uniform approach to continuous markets might not be suitable.

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