Stablecoin

In the week of Feb. 15–22, US spot Bitcoin ETFs recorded $165.8 million in outflows on Thursday, bringing weekly redemptions to $403.9 million and pushing year-to-date losses to $2.7 billion, while trading volumes fell 21%. Metaplanet CEO Simon Gerovich rejected accusations that the firm delayed or obscured disclosures around its Bitcoin purchases, options strategy and BTC-backed borrowings. The period also saw fresh debate on stablecoin rewards in US Senate negotiations and ongoing discussions over quantum risks, with Bitcoin developer Matt Corallo arguing that such fears do not explain Bitcoin’s recent 46% drawdown.

The White House held a third closed-door session on Thursday to assess rules for rewards tied to stablecoin balances, a key element of a broader US crypto market-structure bill. The meeting began at 9 a.m. ET and included Ripple, Coinbase, bank trade groups, and industry associations; participants called it constructive, but no agreement emerged.

USDT Dominance hit 9% resistance and printed a weekly rejection with RSI near 78, according to ParaboliXBT. BTC Dominance broke below a weekly rising wedge and closed around 58.99% as momentum softened on TradingView. With sentiment at extreme fear in February and BTC roughly 46% below its October 2025 peak, traders are watching for an altcoin rotation.

Staff at the SEC’s Division of Trading and Markets clarified last week that broker-dealers may apply a 2% haircut to stablecoin balances when calculating net capital. Commissioner Hester Peirce welcomed the change, and industry voices said it lets firms hold and use stablecoins without skewing capital ratios.

Digital asset firm New Frontier Labs has selected BitGo Bank & Trust National Association, part of crypto infrastructure company BitGo, to issue and custody the FYUSD dollar-pegged stablecoin for institutional investors in Asia. FYUSD follows the GENIUS Act framework, including 1:1 backing with cash or short-term US Treasurys and AML/KYC controls, and is supported by Fypher tools that enable programmable settlement for AI-driven commerce.

According to CryptoOnchain via CryptoQuant QuickTake, TRC-20 USDT balances on Binance climbed from about $385 million on December 24 to roughly $5.2 billion by February 21. The analyst said the jump coincided with Bitcoin and Ethereum testing key supports, implying liquidity rotation and positioning. Bitcoin was around $67,971 at the time of writing.

Since late December, monthly whale-sized stablecoin transfers to Binance climbed from about $27 billion to roughly $43 billion as Bitcoin revisited the $60,000 area. Between 12 and 15 February, realized losses totaled about $2.3 billion, and on 20 February large holders moved 6,317 BTC and 5,000 BTC to Binance, reinforcing bids around that band.

By end‑2025, stablecoin capitalization exceeded $308 billion and remained close to that level in February 2026, indicating structural durability. A Fidelity Digital Assets analysis cited in a Feb. 21 post highlights $75B+ in daily USDT spot trading and $42B in average daily on‑chain transfers, while industry surveys suggest roughly 90% of institutions are adopting or piloting integrations.

According to market data cited in the article, Bitcoin’s value has dropped from $1.76 trillion to $1.34 trillion, with its price near $68,000 and about $420 billion erased in a few weeks. While BTC is still attracting nearly 60% of total crypto investment, capital is shifting toward gold, stablecoins, and fast-growing prediction markets, raising doubts over Bitcoin’s long-term role.

Changpeng Zhao returned to the United States after a presidential pardon in October 2025 and appeared at a Mar-a-Lago crypto event with high-profile attendees. According to posts on X citing Forbes, roughly 85–87% of USD1’s circulating supply sits on Binance, while WLFI scheduled a 235 million WLFI distribution to USD1 holders from February 20 to March 20.