Crypto Biz: Institutions aren’t waiting for the bottom

Institutional demand for crypto is holding up despite ongoing turbulence, with new data showing large investors are preparing to increase allocations even after the market’s sharp sell-off since October.

At the same time, stablecoins are gaining traction across both retail and institutional channels. Japan is moving ahead with regulated USDC lending products, while new models tied to real-world assets are beginning to take shape.

Elsewhere, crypto companies continue to tap traditional capital markets, with Abra pursuing a public listing via a special purpose acquisition company (SPAC) deal.

Together, the latest developments point to a market that is still expanding through regulated pathways, even as price volatility and regulatory uncertainty persist.

Institutional investors double down on crypto

Despite recent volatility and a 40% crypto market sell-off since October, institutional investors are preparing to increase their digital asset exposure, with most expecting prices to rise over the next 12 months. 

A January survey of 351 investors by Coinbase and EY-Parthenon found that 73% plan to buy more digital assets this year, while 74% expect prices to move higher.

Bitcoin and Ether remain the primary entry points, but interest is expanding into stablecoins and tokenized assets. Two-thirds of respondents said they prefer gaining exposure through regulated vehicles such as exchange-traded products.

The data points to steady institutional demand, with capital continuing to move through structured, compliant channels despite market turbulence.

SBI rolls out retail USDC lending in Japan

SBI VC Trade is expanding stablecoin use in Japan with the launch of a retail USDC lending service, as regulated access to dollar-backed tokens gains traction. The move follows recent regulatory changes that allow licensed companies to handle foreign stablecoins, such as Circle-issued USDC.

The platform enables users to lend USDC in exchange for yield, marking one of the first retail-facing products of its kind in Japan. SBI, a major financial group, has been building out its crypto offering within the country’s regulated framework.

The rollout highlights how stablecoins are moving beyond trading into regulated financial products, particularly in markets where legal clarity has already been established.

Abra targets Nasdaq listing through SPAC deal

Crypto wealth manager Abra is planning to go public through a merger with New Providence Acquisition Corp., in a deal that values the combined entity at around $750 million. The company is expected to list on Nasdaq under the ticker ABRX.

Abra has shifted its focus toward wealth management services, including trading, custody and yield products, following regulatory challenges tied to its earlier lending operations. The SPAC route offers a faster path to public markets at a time when traditional IPO activity remains limited.

The deal reflects continued efforts by crypto companies to access public capital, even as regulatory scrutiny and market conditions remain uneven.

Theo launches $100M gold-linked yield stablecoin vault

Tokenization platform Theo has unveiled a $100 million vault tied to a gold-linked, yield-bearing stablecoin, designed to combine price stability with onchain returns. The structure links the token’s value to gold while offering yield to users.

The model introduces a hybrid approach that blends commodity backing with onchain financial mechanisms, reflecting broader efforts to bring real-world assets into crypto markets. Gold serves as the underlying collateral, offering an alternative to fiat-backed stablecoins.

The product highlights growing experimentation around yield-bearing stablecoins, as developers look to expand their role beyond simple price stability.

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