JPMorgan Debuts USCP Token

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Market Snapshot: Overnight Moves

Daily Updates:

• After rangebound price action around $90K early on in yesterday’s trading session, BTC had a modest rally to $93.5K by late evening yesterday. It now trades just above $92K. 
• The small climb higher in BTC’s spot price coincided with an upwards move in US equities. The S&P 500 rose 0.21% on Thursday, while the Russell-2000 and the Dow Jones indices all ended yesterday’s session higher too. That put the S&P 500 at its highest close ever on record, and close to the intraday high it reached back in October. 
• US tech stocks and the Nasdaq-100 however continued to eke lower, following the disappointing earnings report from AI bellwether, Oracle. As such, the Nasdaq-100 was the only major US equity index to end the day lower. 

• Since the October 10 liquidation event, Spot Bitcoin ETFs have struggled to find momentum. Since their launch, persistent inflows into the ETF products have often coincided with broader rallies in BTC. However, following on from the $19B liquidation, Spot ETFs have struggled to see more than five consecutive days of inflows. Yesterday, the products sold $77.5M worth of bitcoins after two days of positive inflows. 

• US treasuries have whipsawed over the past 24 hours. The 10-year yield fell 4bps towards 4.10% yesterday, but has since risen 7bps, now trading at 4.17%. The initial drop in yields came as applications for unemployment benefits rose last week by the most since the start of the Covid pandemic. 
• Initial claims increased by 44,000 to 236,000 in the week ended Dec. 6, the largest jump since March 2020. 
• While unemployment claims data can often be more volatile around holiday periods, the sharp increase follows Chair Powell’s recent comments in the December FOMC meeting where he said “At the same time, people are not filing for unemployment insurance … If there were big numbers of layoffs you’d expect the continuing claims to go up and you’d expect new claims to go up. They really haven’t much, so it’s a little bit curious.” 

• Through the use of a no-action letter (a formal response that a regulator will not enforce action against a firm for a specific activity), the SEC has given the Depository Trust & Clearing Corp (DTCC) permission to custody and recognise tokenised equities and other real-world assets on-chain. The move gives the DTCC the ability to offer tokenisation services on pre-approved blockchains for three years.
• The DTCC plays a crucial role in the traditional finance world, as it acts as the central clearing and settlement hub for equities and fixed-income products. 
• SEC Commissioner Hester Peirce said that “Although this program is a pilot subject to various operational limitations, it marks a significant incremental step in moving markets on-chain”. 
• According to Michael Winnike, the global head of strategy and market solutions at DTCC Clearing & Securities Services, the SEC’s authorisation of tokenisation services only applies to a specific set of securities: the approval includes the Russell 1000 index which represents the 1,000 largest publicly traded US companies, as well as exchange-traded funds that track major indices and US Treasury bills, bonds and notes.
• Winnike said “This allows us both to create value for the markets, while staying in a pre-defined pool of highly-liquid securities to start”.

• US lawmakers are edging closer to comprehensive crypto market regulation after a series of high-level meetings with major bank executives this week.
• Senate Banking Committee Chair Tim Scott said “real progress” is being made on a bipartisan digital asset market structure bill aimed at defining oversight between the SEC and CFTC and clarifying the regulatory status of various tokens.
• Scott met with Bank of America’s Brian Moynihan, Citi’s Jane Fraser, and Wells Fargo’s Charlie Scharf to discuss yield products, DeFi, and AML issues. The talks follow concerns over gaps in the summer’s GENIUS stablecoin law, which banks argue could encourage risky yield-bearing stablecoins.
• Both the Banking and Agriculture Committees are drafting parallel proposals that must be reconciled, with some senators pushing to move the bill through committee before year-end.

• JPMorgan has structured a Solana-executed commercial paper issuance for a Galaxy Digital subsidiary, debuting USCP, a tokenised short-term corporate debt instrument designed to support onchain capital raises.
• Coinbase and Franklin Templeton purchased the debt tokens, with Coinbase also acting as custodian and providing wallet infrastructure plus USDC on/off-ramps. Both issuance and redemption are set to settle in Circle’s USDC, which the firms described as a further first for the commercial paper market.
• The parties did not disclose the deal’s size or terms, but framed it as an early example of institutional-grade debt moving onto public blockchain rails.

• Coinbase is set to announce new offerings in prediction markets and tokenised equities at a product showcase on 17 December, according to a Bloomberg report.
• A Coinbase spokesperson invited users to “tune in” to the livestream but did not confirm specific details.

• deBridge, a cross-chain interoperability protocol, has launched deBridge Bundles, a new intent-based execution model where users sign the outcome they want and the protocol executes it without manual chain-by-chain steps.
• Bundles are framed as the first part of a broader framework supporting one-click trades, deposits, strategies, and chain-abstracted liquidity flows. Unlike traditional “lock-and-mint” bridging, deBridge emphasises direct liquidity transfer across chains.

• VanEck will rebrand its VanEck Gaming ETF (BJK) as the VanEck Degen Economy ETF, following board approval on December 5, 2025. The rebrand shifts the fund’s focus from traditional gaming to high-risk growth areas including digital finance, gig work, online gambling, and digital gaming, and will take effect after April 8, 2026. 
• Launched in 2008, the original ETF has underperformed, 2.67% yearly since inception.

• Do Kwon, the 34-year-old co-founder of Terraform Labs, was sentenced to 15 years in U.S. prison for fraud related to the collapse of algorithmic “stablecoin” TerraUSD and companion token Luna, which erased about $40B from the crypto market in 2022. The judge said Kwon repeatedly misled investors about the stability of the tokens, stating, “This was a fraud on an epic, generational scale. In the history of federal prosecutions, there are few frauds that have caused as much harm as you have, Mr. Kwon.” 

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This Week’s Calendar:

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Charts of the Day:

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