Treasury Rails: Banks, Stablecoins, and Onchain Capital

Stablecoin supply moved back above $304 billion in late August, up roughly 1% over the preceding 30 days. USDT remains the dominant asset at approximately $183.3 billion, or 60.3% of the market, while USDC sits near $73.9 billion. The modest increase in supply came alongside a much sharper recovery in digital asset trading activity.

Daily centralized exchange volume doubled in five days to more than $37 billion, recovering from its 2026 low, although it remained well below the 12-month peak of approximately $105 billion. August spot CEX volume had reached about $490 billion by August 24 versus $670 billion for all of July. Bitcoin and Ether gained more than 23% and 30%, respectively, over three days during the rebound.

The move exposed how much leverage remained in the system. Short liquidations reached $2.26 billion in a single day, more than 30 times the preceding 30-day daily average, with Binance accounting for 41%, Hyperliquid 34%, and Bybit 18%. More than $4.4 billion of shorts were liquidated over the week. A subsequent weekend reversal cleared another $640 million of long positions as thinner liquidity amplified relatively small moves in Bitcoin and Ether.

At the same time, more of the spot market is moving through regulated wrappers. U.S. Bitcoin ETFs took in $1.9 billion during their strongest week of 2026, including $1.3 billion into BlackRock's IBIT. Their share of total Bitcoin spot volume rose from 21% to 30% in a month. By August 26, U.S.-listed crypto ETFs added another approximately $471 million across Bitcoin, Ether, XRP, Solana, and Hyperliquid products. The result is a market where liquidity is increasingly distributed among centralized exchanges, ETFs, and onchain venues rather than concentrated in a single execution channel.

JPMorgan Weighs Stablecoins Alongside Deposit Tokens

JPMorgan is evaluating whether to issue its own stablecoin as major banks reconsider the boundary between tokenized commercial-bank deposits and independently circulating digital money. The move would be notable because JPMorgan has spent years building its blockchain strategy around deposits that remain liabilities of the bank rather than stablecoins backed by segregated reserve assets.

Its existing JPM Coin, ticker JPMD, is a permissioned U.S. dollar deposit token issued on Base for institutional clients. It represents money on deposit at JPMorgan and therefore carries the credit profile of commercial bank money, while allowing 24/7 onchain transfers, collateral posting, settlement, and programmable payments. JPMorgan began its public-chain proof of concept in June 2025 and subsequently made JPMD available for institutional use.

The infrastructure around it is already operating at meaningful scale. Kinexys has processed more than $4 trillion in transactions since inception and now averages more than $7 billion per day. Its Blockchain Deposit Account network expanded in June to eight currencies after adding AUD, HKD, JPY, RMB, and SGD, allowing clients to conduct 24/7 settlement and onchain FX across a broader set of commercial-bank deposits.

JPMorgan is also extending JPMD beyond Base. In January, Kinexys and Digital Asset announced a phased 2026 plan to issue JPMD natively on the Canton Network, where it could eventually be issued, transferred, and redeemed against other tokenized institutional assets. Separately, Kinexys now provides the tokenization infrastructure behind J.P. Morgan Asset Management's tokenized money-market fund suite.

A JPMorgan stablecoin would address a different market. JPMD is permissioned and limited to JPMorgan institutional clients; a stablecoin could potentially circulate across external wallets, exchanges, applications, and public blockchain networks without remaining inside the same bank-controlled perimeter. JPMorgan is not alone in exploring that distinction: more than a dozen major banks are examining shared stablecoin infrastructure, while smaller U.S. institutions are developing tokenized deposit and stablecoin networks of their own.

Revolut Brings Euro-Denominated Value Onchain

Revolut launched EURR, a euro-backed stablecoin initially available to eligible customers in Denmark, Poland, and Portugal. The token is being introduced on Ethereum through a phased rollout and is designed to maintain a value of €1.00.

The scale of the distribution channel is significant. Revolut now serves more than 75 million customers across more than 40 markets, giving EURR immediate access to an existing base already using the company for payments, foreign exchange, and crypto rather than requiring a standalone stablecoin network to build distribution from scratch.

EURR is issued by Bridge Building S.A., a Stripe company, and offered through Revolut Digital Assets Europe. The structure places issuance and distribution within Europe's regulated digital-money framework: EURR is structured as a euro-denominated e-money token under MiCA, while Revolut's European digital asset entity operates as an authorized CASP.

The product connects fiat balances, crypto, external wallets, and supported blockchain networks, allowing a Revolut customer to move euro-denominated value onchain without first converting into a dollar stablecoin. That remains a meaningful distinction in a market where USDT and USDC alone account for roughly $257 billion, or about 85% of global stablecoin capitalization.

Revolut has said additional local-currency stablecoins are already being developed through separate regulatory pathways and that EURR availability will expand later this year. Rather than treating stablecoins as another crypto listing, the company is embedding tokenized money directly into the same environment where customers already hold fiat balances and conduct FX.

Regulated Crypto Products Keep Absorbing Institutional Capital

U.S.-listed crypto ETFs recorded approximately $471 million in combined net inflows on August 26 even as Bitcoin retreated toward $78,000 after trading above $80,000.

Spot Bitcoin ETFs contributed $232.2 million, extending their positive streak to eight consecutive sessions and bringing inflows over that period to approximately $2.8 billion. BlackRock's IBIT led the session with $200.8 million, followed by Fidelity's FBTC at $25.6 million and Grayscale's lower-fee Bitcoin product at $46.8 million. Those gains were partially offset by a $50.4 million outflow from GBTC.

The broader weekly numbers show a larger change in where Bitcoin is traded. Spot Bitcoin ETFs attracted $1.9 billion in the preceding week, their strongest weekly inflow of 2026, with IBIT alone receiving approximately $1.3 billion. Over the same month, ETFs increased their share of total Bitcoin spot trading volume from 21% to 30%, meaning nearly one-third of measured BTC spot activity was passing through the ETF market rather than direct spot trading.

Ether products added another $192.4 million on August 26, bringing inflows since August 17 to roughly $1.18 billion. BlackRock's ETHA attracted $115.7 million during the session, Fidelity's FETH received $32 million, and Grayscale's lower-fee Ethereum vehicle added $34.7 million.

Flows are also broadening beyond Bitcoin and Ether. XRP ETFs brought in approximately $28.1 million on August 26, lifting cumulative net inflows to about $1.62 billion, while Hyperliquid products added $14.7 million, bringing cumulative flows to approximately $322 million. Solana was the outlier, with daily inflows slowing to $3.6 million from more than $32 million the previous session.

Tokenized Portfolios Bring Portfolio Management Into the Wallet

Bitwise launched Automated Token Portfolios, rules-based investment strategies that allow eligible non-U.S. investors to hold and automatically rebalance portfolios of tokenized U.S. equities without transferring those assets into a pooled investment vehicle.

The first portfolios use Coinbase's tokenized U.S. stocks and are implemented through Glider, with themes including the Magnificent Seven plus SpaceX, robotics, and artificial intelligence. Bitwise charges a 0.15% methodology access fee, excluding trading and platform fees.

The custody model is the more significant change. The tokenized stocks remain in the investor's non-custodial wallet while Bitwise's portfolio methodology determines the target allocations and Glider executes the rebalancing. Bitwise therefore separates professional portfolio management from custody in a way that is difficult to reproduce in a traditional fund structure.

Bitwise had approximately $9 billion in client assets as of July 1 and has been building other products around the same architecture. In January, it partnered with Morpho on curated non-custodial lending vaults, followed in February by professionally constructed crypto model portfolios for financial advisers.

The ATP structure also leaves the underlying securities available in the investor's wallet rather than locking them inside a fund. Subject to the relevant platform and jurisdiction, that creates the possibility of using tokenized positions in lending, borrowing, collateral, or other onchain workflows while the portfolio remains subject to an externally managed investment methodology.

Coinbase and Better Bring Digital Assets Into Mortgage Collateral

Better Mortgage and Coinbase have moved their token-backed conforming mortgage into general availability for Coinbase One members, bringing digital asset collateral into a mortgage structure designed around Fannie Mae conforming-loan guidelines.

The product allows eligible borrowers to use crypto holdings in the home-financing process without first liquidating them. Coinbase originally disclosed Bitcoin support when the product was announced in March, while subsequent expansion included Bitcoin and USDC for down-payment collateral. The first lien itself remains a standard mortgage originated and serviced by Better.

Coinbase One members approved for eligible Better products can receive a lender-funded credit equal to 1% of the mortgage value, capped at $10,000. Better has extended that credit beyond the token-backed mortgage to standard mortgages, HELOCs, and refinances.

Early demand was substantial relative to the program's launch size. The June waitlist represented more than $260 million in projected loan volume before general availability; 76% of respondents were already Coinbase One members, and 60% said they expected to purchase a home within six months.

Better has funded more than $110 billion in loans, and the company says 41% of its pre-approved customers meet its income and credit criteria but do not have enough cash for a conventional down payment. The product is designed around that mismatch: digital assets can represent available wealth for underwriting and collateral purposes even when the borrower does not want to convert those holdings into cash before closing.

Sources & Market Signals

• Reuters | Bitcoin Rises Above $80,000 as Soft Dollar and Debasement Fears Boost Momentum | Bitcoin moved back above $80,000 as Treasury bond-buyback policy, a weaker dollar, and renewed institutional demand improved liquidity conditions for digital assets.
• Farside Investors | U.S. Bitcoin ETF Flows | Daily fund-level data showing continued institutional accumulation across U.S. spot Bitcoin ETFs.
• Farside Investors | U.S. Ethereum ETF Flows | Daily fund-level data tracking the late-August acceleration in Ether ETF inflows.
• J.P. Morgan | JPM Coin USD Deposit Token | J.P. Morgan’s institutional deposit-token infrastructure and its approach to 24/7 onchain settlement.
• J.P. Morgan | Stablecoins and Deposit Tokens Reshaping Global Payments | J.P. Morgan’s view of the complementary roles of stablecoins and tokenized commercial bank deposits.
• Revolut | Introducing EURR | Revolut’s euro-backed stablecoin rollout through Bridge, initially covering Denmark, Poland, and Portugal.
• Bitwise | Automated Token Portfolios | Bitwise’s self-custodied, automatically rebalanced portfolios of tokenized equities powered by Coinbase and Glider.
• Better | Token-Backed Conforming Mortgages with Coinbase | General availability of Better’s conforming mortgage product using Coinbase-powered digital asset collateral.