Grayscale says BlackRock, JPMorgan and Visa deals support crypto growth

Key points

• BlackRock opened European tokenised fund share classes on 4 Aug, using JPMorgan's Kinexys to issue digital shares on Ethereum.
• Visa reported annualised stablecoin settlement above $25bn on its 27 Oct earnings call, ten times the year-earlier level, across 10 blockchains.
• Grayscale estimates 80%-85% of global crypto activity takes place outside the US.

Grayscale says institutional crypto adoption is deepening, pointing to BlackRock, JPMorgan and Visa as evidence that digital assets are becoming part of mainstream finance. Zach Pandl, the asset manager's head of research, made the case in a note on 28 Oct, arguing that this trend should hold regardless of the US midterm election result.

BlackRock made blockchain-based versions of its European cash-management strategies available to eligible investors on 4 Aug. The share classes are issued and managed on Ethereum through Kinexys, JPMorgan's blockchain business, while official ownership records stay with the funds' transfer agent. BlackRock's cash business also launched two tokenised money market products in August, one of which could hold reserves backing payment stablecoins.

Visa settlement growth

JPMorgan's asset management arm extended its tokenised money market funds to Solana on 22 Oct. Its MONY private fund is for qualified investors, while JLTXX is a registered government money market fund aimed at stablecoin issuers' reserve needs. Visa, meanwhile, said on its 27 Oct earnings call that annualised stablecoin settlement volume had passed $25bn, ten times the level a year earlier, across 10 blockchains.

Pandl also cited the bipartisan GENIUS Act, a US law setting a framework for payment stablecoins covering reserves, redemptions and disclosures. He argued that overseas users will keep seeking alternatives to fiat currencies and that growing federal debt will push investors towards stores of value such as cryptocurrencies.

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