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Smart money strikes: How institutions are leveraging the Crypto market

While retail investors hesitate, institutional giants are making bold moves—launching stablecoins, expanding Bitcoin holdings, and shaping regulatory frameworks. From Fidelity and BlackRock to Trump’s stablecoin bet, we break down how smart money is positioning itself for the next big wave in crypto.

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Cryptopolitan News
March 26, 2025 • Estimated Reading Time: 11 minutes

Hello, and welcome to the Cryptopolitan Daily.

❝

Be fearful when others are greedy, and greedy when others are fearful. 

These words come from Warren Buffett —a  legendary investor who, ironically, dismisses Bitcoin as a scam. Yet, his philosophy might just explain what’s happening in the crypto markets right now. While retail investors hesitate, institutional giants are making bold moves.

In our last edition of the Cryptopolitan daily we analysed 10 important headlines and their impact on the market. Be sure to check that one out before we dive into this one.

Over the past few weeks uncertainty was surrounding the markets, or should we say the retail side of the market? 

While retail investors chased headlines and short-term gains, institutions were quietly laying the groundwork for something bigger. Now, those plans are coming to life.

Let’s analyse

Fidelity to launch it’s own Stablecoin

Fidelity, the investment giant managing $5.8T in assets and overseeing $15T in administration, entered the crypto space in 2018 with the launch of Fidelity Digital Assets, a subsidiary focused on institutional-grade custody and trading for Bitcoin. Since then, Fidelity has expanded its crypto offerings across multiple fronts, including ETFs, retirement funds, and a tokenized money market fund in collaboration with J.P. Morgan.

This move further strengthens Fidelity’s presence in the crypto space, with the asset manager confirming it is in the final stages of testing its token.

This expansion positions Fidelity alongside major players in the tokenized finance sector, as competition in the stablecoin and digital asset space intensifies. 

With its upcoming tokenized money market fund set to launch in May, Fidelity is directly challenging BlackRock and Franklin Templeton, both of which have already established significant footholds in this arena.

Trump family joins the Stablecoin– gold rush

Donald Trump has officially stepped into the crypto space with the launch of USD1, a stablecoin pegged 1:1 to the U.S. dollar. Issued by his family company, World Liberty Financial Inc. (WLFI), the token is designed to offer a stable, transparent, and fully backed digital dollar alternative.

According to WLFI, USD1 will be backed by short-term U.S. government treasuries, USD deposits, and other cash equivalents—ensuring that every token holds its value at exactly one dollar. “No exceptions,” the company emphasizes, as it positions USD1 as a stablecoin that users won’t have to second-guess.

At launch, USD1 will be available on Ethereum and Binance Smart Chain, with expansion plans to other blockchains already in motion. WLFI has also promised full transparency, stating that a third-party accounting firm will conduct regular audits to verify reserves and maintain trust in the token’s stability.

With this move, Trump is not just making a statement — he’s placing a bet on the future of digital dollars. As stablecoin competition heats up, USD1 enters the market alongside giants like Tether’s USDT and Ripple’s RLUSD. The question now is whether Trump’s stablecoin can carve out a lasting place in an increasingly crowded space.

Why are institutions interested in Stablecoins?

It is because of upcoming regulations. 

At the White House Crypto Summit on March 7, U.S. President Donald Trump called for lawmakers to pass a comprehensive stablecoin regulatory bill before the August congressional recess. The move signals the administration’s growing focus on digital assets and their role in the global financial system.

Backing Trump’s stance, U.S. Treasury Secretary Scott Bessent reinforced the government’s commitment to leveraging stablecoins to maintain the U.S. dollar’s status as the world’s dominant reserve currency.

We are going to put a lot of thought into the stablecoin regime, and as President Trump has directed, we are going to keep the U.S. dollar the dominant reserve currency in the world, and we will use stablecoins to do that.

—Scott Bessent, U.S. Treasury Secretary

With this push, the U.S. is not just acknowledging stablecoins but actively integrating them into its broader economic strategy. Institutions eye it as a lucrative time to enter the Stablecoin market, hence the bold moves.

Gamestop mimics Michael Saylor’s Strategy

GameStop, the retail investor’s favorite meme stock, is making a bold pivot into Bitcoin. On Tuesday, the company announced that it will begin allocating corporate cash to Bitcoin, following in the footsteps of MicroStrategy. According to CNBC, the board unanimously approved the decision, signaling a strategic shift toward digital assets.

Once known for its rollercoaster stock rallies fueled by retail traders, GameStop is now betting on Bitcoin as part of its long-term financial strategy. With institutional players and corporations increasingly adopting Bitcoin as a reserve asset, GameStop’s move could mark a new chapter for corporate treasury management.

Blackrock is making big moves— again

BlackRock, the world’s largest asset manager, is doubling down on digital assets, expanding its footprint across multiple blockchains and financial markets.

The firm’s tokenized money market fund, BlackRock USD Institutional Digital Liquidity Fund (BUIDL), is now live on Solana, marking its seventh blockchain integration. Originally launched a year ago, BUIDL is already operational on Ethereum and five other networks, with Securitize confirming the latest expansion.

Meanwhile, BlackRock is bringing its first Bitcoin exchange-traded product (ETP) to Europe. The iShares Bitcoin ETP will begin trading under multiple tickers: IB1T on Xetra and Euronext Paris, and BTCN on Euronext Amsterdam. This move follows the massive success of BlackRock’s $48 billion U.S. Bitcoin fund, which became the largest ETF debut in history after launching in January 2024.

The institutional appetite for Bitcoin remains strong — BlackRock received $100 million in BTC deposits in just the last seven days, bringing its total holdings to 570.83 BTC. Data from Arkham Intelligence shows that 350 BTC were acquired via Coinbase Prime on Monday alone.

What’s next?

Institutional players are locking in their crypto strategies. BlackRock expands across multiple blockchains, Fidelity enters the stablecoin market, and GameStop pivots to Bitcoin.

With the U.S. government pushing for stablecoin regulations, the stage is set for accelerated adoption. Tokenized finance is no longer a concept — it’s a reality, with major asset managers leading the charge.

Meanwhile, Bitcoin accumulation continues, and the battle for dominance in the stablecoin market is intensifying. As these moves unfold, they are reshaping the next decade for the industry. One step at a time.

As institutions move fast, don’t get left behind. Stay ahead with Cryptopolitan — your source for the latest market moves and insights

Market-moving headlines 🔥

Ripple has dropped its appeal against the U.S. Securities and Exchange Commission after paying $50 million of the $125 million penalty tied to its long-running lawsuit, according to a detailed statement posted by Stuart Alderoty, Ripple’s Chief Legal Officer.

According to a monthly analysis conducted by the Conference Board, consumer expectations for future income, business, and labour market conditions dropped to their lowest level in 12 years, reaching an index of 65.2.

A much greater number of investors in Romania are putting money into cryptocurrencies compared to those willing to place their bets on traditional equity.

Michael Saylor hinted at buying more Bitcoin after Strategy raised $711 million through its latest stock sale. Strategy’s total Bitcoin holdings have reached 499,226 BTC after its recent purchase of 130 BTC.

In the spotlight 🔥

2024: The Wild West of Web3 is closing.

The frontlines have been fought—innovation, failure, and experimentation defined the past decade. 

Now? 

The institutions are here to claim the spoils.

Over 50 major Web2 players have already launched Web3 funds and subsidiaries. 

Sony is buying exchanges and building blockchains. 

Coinbase Ventures, a16z, Sequoia—these aren’t just investors anymore. 

They’re the new gatekeepers.

What’s next?

Mergers. Acquisitions. Scale.

In the next 2-5 years, consolidation will hit Web3 hard. 

The builders have built. 

Now the capitalists are here to profit.

The game is changing.

Welcome to the era of institutional domination.

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