In this month’s news episode, we focus on digital asset infrastructure. The financial world may be on the brink of one of its most transformative shifts since the dawn of electronic trading. If the latest industry developments are any indication, the once disparate universes of traditional finance (TradFi) and decentralized finance (DeFi) are no longer headed for collision—but convergence.
From Wall Street titans exploring public blockchains to crypto natives adapting to regulatory demands, March has been a month of remarkable alignment. Central to the momentum is a rising focus on infrastructure—specifically, the rails that digital assets travel on, and how those rails are being rebuilt, reimagined, and, increasingly, shared.
Bitcoin’s Bumpy Ride in a Macro-Driven Market
Market turbulence continued into March. Following a strong sell-off in February, global crypto market capitalization fell from December highs of $3.7 trillion to around $2.8 trillion. Bitcoin prices swung between $85,000 and $90,000, reflecting volatility fueled by geopolitical tensions and an increasingly intertwined relationship with tech stocks.
ETF flows mirrored this uncertainty. Outflows persisted throughout the first half of the month, only slightly offset by minor inflows in late March. Despite a friendlier tone from U.S. policymakers, macroeconomic concerns continued to dominate.
Yet beneath the surface, momentum builds. As Alex and Manuel from the “Bitcoin, Fiat & Rock’n’Roll” podcast noted, the fundamentals—developer activity, innovation pace, and stablecoin usage—suggest an ecosystem far more resilient than the headlines might indicate.
Digital Asset Infrastructure: The New Battlefield
Frankfurt’s recent Crypto Assets Conference was dominated by one theme: infrastructure. What began as a niche topic became the focal point, with panels multiplying and institutions jockeying to stake their claim in the future of financial technology.
The trend? Two camps—crypto natives and TradFi incumbents—are inching toward a middle ground. DeFi platforms are experimenting with permissioned validators and KYC-compliant user pools. TradFi institutions, meanwhile, are pushing into blockchain territory, launching tokenized securities and exploring public, albeit permissioned, blockchain environments.
Coinbase exemplifies this evolution. Once a pure-play centralized exchange, it now backs Base, a Layer 2 blockchain, and recently launched “verified pools”—liquidity pools gated by Coinbase’s internal KYC process.
From the other end, TradFi behemoths like Goldman Sachs and Euroclear are embracing public-permissioned networks like Canton, while Kraken’s $1.5 billion bid for futures platform NinjaTrader signals a bold move into regulated U.S. derivatives trading.
Regulation Redraws the Map
The slow but steady rollout of regulation is also reshaping the landscape. Europe’s MiCA regime and Switzerland’s DLT framework are tightening the screws on stablecoin issuers and decentralized platforms. The closure of German operations by stablecoin issuer Athena, following enforcement actions by BaFin, is a cautionary tale: unregulated DeFi may soon be a relic of the past.
Yet regulation isn’t necessarily a deterrent—it’s becoming an enabler. In the U.S., Trump-era deregulation seems to be making a comeback. The Office of the Comptroller of the Currency (OCC) has signaled support for banks engaging in crypto custody and trading without additional licenses. Meanwhile, stablecoin legislation is reportedly on Trump’s desk, with bipartisan interest brewing in both chambers of Congress.
The OCC’s move could unlock significant institutional participation. Global custodians and asset servicers, previously wary of regulatory ambiguity, are quietly preparing to enter the space. The upcoming Basel III implementation could pose obstacles—especially for banks holding assets on public blockchains—but the final regulatory landscape remains in flux.
Stablecoins Surge Ahead
One sector seemingly immune to the broader uncertainty is stablecoins. March saw a flurry of announcements:
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Fidelity is developing its own stablecoin offering.
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OpenAI and Visa are backing stablecoin use in real-world payments via the Worldcoin network.
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ICE, the parent company of the NYSE, is integrating USDC into capital markets workflows.
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Trump’s family business quietly issued a stablecoin—USD1—without formal announcement, adding another layer to the crypto-politics mix.
Perhaps most telling is the $100 million acquisition of German stablecoin API firm Iron by MoonPay—a sign that enterprise-grade, stablecoin-driven financial plumbing is now a strategic asset.
Even longtime critics are switching sides. Citi veteran Tony McLaughlin, once the face of tokenized deposit efforts, now calls himself a “stablecoin maximalist,” advocating for public blockchain settlement rails via his new venture, Ubix.
Europe at a Crossroads
As the U.S. ramps up its crypto integration, Europe risks falling behind. ECB Executive Board member Philip Lane recently made an impassioned case for the digital euro, but timelines remain long and momentum slow. The EU must soon decide how—or whether—to adopt Basel’s stricter capital requirements for public blockchain assets. A hardline stance could isolate European banks from the global crypto wave.
Alex and Manuel put it succinctly: “Pure DeFi may become a niche. The future is likely hybrid—regulated, permissioned, but built on open infrastructure.”
What Comes Next?
Conversations like those at Frankfurt’s conferences, and analyses from researchers like Basel’s Fabian Schär, hint at a pragmatic future: public blockchain rails governed by permissioned applications. Just as the internet allows anyone to publish but not everyone to access every service, the financial internet of tomorrow may be open by design, but gated in practice.
In this future, a JPMorgan-issued bond and a Uniswap liquidity pool may run on similar tech—but obey very different rules.
Whether it’s Trump’s crypto U-turn, Kraken’s Wall Street push, or Coinbase’s cautious embrace of regulation, one thing is clear: the era of ideological extremes is fading. What’s emerging instead is a new financial middle ground—open, compliant, and finally, interoperable.
Nuggets of the months of each co-host
• Manuel: Speech on the digital euro by Philip R. Lane, Member of the Executive Board of the ECB
• Alexander: Coinbase Ethereum Validator Performance Report
FAZ article by Alex on the US Bitcoin reserve
Podcast with Frank Schäffler on the Bitcoin reserve
Podcast with Jürgen Schaaf on the Bitcoin reserve
Podcast with Peter Grosskopf on Unstoppable Finance
Bitcoin, Fiat & Rock’n’Roll Website
Bitcoin, Fiat & Rock’n’Roll Telegram Channel
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Digital Euro Conference Partnership: BFRR partners with the Digital Euro Conference 2025 taking place on March 27 in Frankfurt. DEC25 brings together leading voices shaping the financial landscape, covering topics around retail and wholesale CBDCs, stablecoins, and tokenized money in general. As an official event partner, BFRR gives away one free ticket for physical participation in Frankfurt. If you are interested, please write us an email to info@bfrr.de by January 31st. If you are not the “lucky winner”, you get 20% off the ticket prices with the code “BFRR20”. To buy your ticket go to the official website Click here and insert the code “BFRR20”.
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