Digital asset market update — 27 August 2026
Reporting the 24 hours to 06:00 Europe/London · 290 words · Prepared by 01 Capital
Regulatory developments concerning digital asset custody are advancing in the United States, with the Securities and Exchange Commission (SEC) forwarding proposed changes to its crypto custody rules for investment advisers to the White House for review (The Block, CoinDesk, Bloomberg). This move revives efforts from the previous administration to narrowly restrict where investment advisers can hold client crypto assets. Concurrently, the Dallas Fed has issued a warning that tokenized deposits could potentially strip $700 billion from U.S. banks' lending capacity, citing programmable deposits and AI agents enabling automated bank switching for higher yields, thereby increasing funding costs for banks (CoinDesk). These concerns underscore growing attention to the systemic implications of digital asset innovation.
In market structure and adoption, Japan is initiating plans to develop tokenization for stocks and bonds this year, with regulators aiming to modernize national settlement systems and prevent capital flight (CoinDesk, The Block). Separately, South Korea’s Shinhan Financial Group is collaborating with Visa to test stablecoin issuance and B2B settlements, including the application of stablecoins in card payments and AI-based payment models (CoinDesk, The Block). Revolut has also commenced a phased rollout of its euro-pegged stablecoin, EURR, in Denmark, Poland, and Portugal, pushing euro stablecoins into mainstream use (CoinDesk, The Block).
Regarding protocol security, the first quantum-resistant Bitcoin transaction has reportedly been successfully executed by StarkWare, though a full protocol-level upgrade is deemed necessary for complete protection against quantum computing threats (The Block). Ethereum developers are also proposing initial steps to protect ETH staking from quantum attacks by allowing validators to deposit with quantum-resistant keys (CoinDesk). This highlights an emerging focus on long-term cryptographic security for foundational digital asset protocols.
Institutional participants will likely monitor the progress and specifics of the SEC's proposed crypto custody rule changes.
How 01 Capital reads this
01 Capital is a research and intelligence firm specialising in the structures, behaviours and economics unique to digital assets. We provide valuation intelligence, tokenisation, transaction support and strategic and board advisory to institutions, asset managers, corporate treasuries and advisers.
Sources
- CoinDesk — SEC resurrecting U.S. crypto custody rule the previous administration failed to land
- The Block — SEC sends crypto custody rule changes to White House for review
- Bloomberg — SEC Preps Overhaul of Crypto Custody Rules for Investment Firms
- CoinDesk — Dallas Fed warns tokenized deposits could strip $700 billion from U.S. banks' lending capacity
- CoinDesk — Japan to start stocks and bonds tokenization development plans this year
- The Block — Japan to work on blockchain-based stock settlement system, details expected early 2027: Nikkei
- CoinDesk — South Korea’s top financial conglomerate team up with Visa to test stablecoin issuance and B2B settlements
- The Block — South Korea’s Shinhan to use Visa’s stablecoin platform for ‘future finance’ initiatives
- CoinDesk — Euro stablecoins get a mainstream push as Revolut begins rolling out EURR in Europe
- The Block — Revolut begins phased EURR stablecoin rollout in Denmark, Poland and Portugal
- The Block — First quantum-resistant Bitcoin transaction successfully executed, StarkWare says
- CoinDesk — Ethereum developers propose first step to protect ETH staking from quantum attacks
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