## The Turning Point of Stablecoins: Institutional Power Driving Financial System Upgrades

### The Underlying Signals Behind Two Announcements

At the beginning of 2026, the crypto market is witnessing a development worth noting — stablecoins have officially become a key infrastructure in traditional finance.

Today, two independent but aligned news stories point to the same trend: stablecoins are gradually evolving from fringe products into mainstream payment tools.

### The Formal Adoption by Major Payment Networks

Visa announced that it will expand its USDC settlement plan to U.S. banks, allowing participating institutions to use Circle’s USDC for settlement on the Solana blockchain. The significance of this move is that banks and payment companies can now transfer funds outside traditional business hours, achieve finality in on-chain settlements, and seamlessly integrate the entire process into Visa’s existing financial and reconciliation systems.

Rubail Birwadker, Head of Global Growth Products and Strategic Partnerships at Visa, said: “Our banking partners are not only asking about stablecoin settlement solutions, but they are already preparing to use them.”

### The Formal Establishment of Regulatory Frameworks

Meanwhile, the U.S. FDIC approved an important proposal to implement the GENIUS Act, clarifying how banks under FDIC regulation can issue payment stablecoins through subsidiaries. The proposal details application requirements, governance standards, reserve and liquidity expectations, and ongoing regulatory oversight frameworks.

Banks will need to maintain high-quality reserves to support the stablecoins they issue and operate within clear risk management and compliance frameworks. This move indicates that U.S. financial regulators are paving the way for large-scale adoption of stablecoins.

### Why This Matters

When major financial intermediaries and regulators move in the same direction, the pace of institutional adoption often accelerates. BlackRock predicts in its 2026 outlook that stablecoins will become a “superpower” influencing the global economy this year.

This is no longer a niche crypto topic — stablecoins are becoming an essential part of the global financial infrastructure.

### Market Dynamics and Price Movements

**Mainstream Crypto Asset Performance:**

As of the latest data, Bitcoin (BTC) is priced at $91.84K, up 1.38% in 24 hours; Ethereum (ETH) at $3.15K, up 1.94%; Binance Coin (BNB) at $906.70, down 0.64%; Solana (SOL) at $142.05, up 4.57%.

**Leading Coins:**

Among them, MYX Finance performed the strongest, with a 24-hour increase of 9.43%; SPX6900 up 3.17%; FARTCOIN up 2.21%. Mainstream meme coins like PENGU and BONK also rose by 2.51% and 2.43%, respectively.

### Protocols and Token Ecosystems

Cantor Fitzgerald released a 62-page report predicting that Hyperliquid (HYPE) will reach a market cap of $250 billion within ten years, with a fully diluted market cap currently at $23.90B. The Hyper Foundation announced it will burn HYPE tokens from the Assistance Fund.

Rainbow Wallet officially announced its TGE will take place on February 5, 2026, with airdrops planned. Additionally, emerging payment platform RedotPay raised $107 million in Series B funding to expand its stablecoin payment platform.

### Regulatory and Security Incidents

The SEC has concluded a four-year investigation into AAVE, with no enforcement action recommended, signaling a positive development for DeFi protocols.

On the other hand, regulators are also dealing with legacy issues. The FTC stated that $186 million recovered after an attack on a bridging protocol in 2022 must be returned. Additionally, a case involving investor losses of approximately $206 million due to a collapsed exchange’s promotional activities is ongoing, involving multiple influencers and false advertising responsibilities — a reminder for market participants to remain vigilant against fraud similar to the JPEX incident.

The South Korean government recently approved a debt relief plan for about $15 million for crypto traders.

### NFT Market Snapshot

NFT performance has been mixed: CryptoPunks down 1% to 27 ETH, while Pudgy Penguins up 3% to 4.69 ETH, and BAYC up 3% to 4.99 ETH. Pudgy Penguins confirmed they will be featured at the Las Vegas Sphere, securing approximately $500,000 in advertising space.

### Institutional Capital Movements

Bitcoin ETFs have seen net outflows of $635 million this week, while Ethereum ETFs have experienced outflows of $449 million. KindlyMD, due to its stock price remaining below $1, faces delisting risk from Nasdaq, but the company states it has until June 2026 to regain compliance.

### Policy Outlook

Political developments in the U.S. are also influencing market expectations. Reports indicate that U.S. politicians are willing to nominate Democrats to the SEC and CFTC, a shift that could help advance the long-stalled Senate crypto market structure bill.