Daily Edition · Page 7

THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

FIDELITY INVESTMENTS STARTS ITS OWN STABLECOIN

Fidelity Investments is launching the Fidelity Digital Dollar (FIDD) in early February, marking one of the largest traditional financial institutions' entry into the stablecoin market. The stablecoin will be issued by Fidelity Digital Assets, a federally chartered bank, and operate on Ethereum with 1:1 dollar redeemability across Fidelity's platforms, major exchanges, and DeFi protocols for use cases including 24/7 institutional settlement and onchain payments. The launch was enabled by the recently passed GENIUS Act, which provides regulatory clarity for stablecoin reserves consisting of cash, cash equivalents, and short-term Treasuries with daily public disclosures and third-party attestations. Fidelity is entering into direct competition with Circle and Tether in the $308 billion stablecoin market, positioning FIDD as foundational infrastructure for expanding its onchain financial services ecosystem.

WHERE DOES CRYPTO GO FROM HERE?

Crypto is losing its position as the default destination for speculative capital, with AI attracting $35B in private investment in 2024 (up 8.5x from 2022) and robotics securing $2B in Q1 2025 alone, while institutional capital increasingly favors crypto equities and spot ETFs over altcoins. Stablecoins have emerged as the dominant use case with $304B in total supply (up 33% YoY), monthly volumes exceeding both PayPal and Visa, and stablecoin reserves now holding $133B in US Treasuries as the 19th largest holder. Value is migrating from infrastructure – which is commoditizing as data availability costs race to zero – to the application layer, with RWAs scaling rapidly from $15M in tokenized stocks in January 2025 to over $500M today, while equity perpetuals gain traction across multiple platforms.

PERPS MARKET LANDSCAPE

Hyperliquid operates on a dual-chain architecture with HyperCore handling native trading execution (200,000 orders per second at 0.2 second latency via HyperBFT consensus) and HyperEVM supporting dApp development, including lending protocols, liquid staking derivatives, and yield strategies. The platform's vault system includes protocol-run HLP vaults for market making and liquidations, plus user vaults requiring leaders to maintain 5% stake and taking 10% of profits. HYPE tokenomics allocate 31% to a genesis airdrop across 94,000 users, 38.888% for future emissions, and 23.8% to core contributors with vesting through 2027-2028. HIP-3 introduces permissionless builder-deployed perpetuals, marking a significant step toward decentralizing the perpetual listing process beyond protocol control.

QASH TO BUILD A STABLECOIN-POWERED NEOBANK FOR LATIN AMERICA

Qash closed a $1.5 million pre-seed round led by Chaac Ventures with participation from Antler to scale its stablecoin-powered neobank. It was founded by Venezuelan-born Boris Spiwak to help Latin Americans save, spend, and invest in US dollars, with the new capital earmarked to expand product offerings, grow the team, and accelerate user acquisition amid rising stablecoin adoption after the GENIUS Act. Qash hopes to build on existing momentum as transaction volume has grown about 35x in six months.

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