The U.K. government on Tuesday said it intends to enable the wholesale market to identify the best distributed ledger technology (DLT) use cases as well as roll out tokenization solutions.

The country wants DLT — the blockchain technology that underpins crypto — to be utilized across different sectors in wholesale financial markets and create cross market groups «to take forward live activity,» the country’s Treasury said in a policy paper.

A part of the plan includes creating a regulatory framework for crypto technology, something which is already underway as the nation sets out to be a crypto hub. The U.K. published draft legislation for the stablecoin issuers and exchanges in April.

«For instance, on digital wholesale payments the government and regulators are open to proposals that innovate on existing forms of payment, such as tokenised deposits, and also new innovations such as stablecoins,» said Treasury.

The government wants to enable the sector to test solutions that tokenize financial assets and help digitize post trade processes.

Worldwide, RWA tokenization has grown by 380% in just three years and reached $24 billion this month, according to a first-half 2025 report from RedStone, Gauntlet and RWA.xyz.

U.K. regulators will also test using stablecoins — digital tokens pegged to assets — alongside other payment solutions in the new digital securities sandbox.

Read more: FSB Chair Makes Stablecoins a Priority Ahead of G20 Meeting

Internet Computer (ICP) saw a volatile 24-hour stretch marked by early selling and a sharp rebound After falling to $5.27, the token recovered into the close to settle at $5.4324 — trimming losses after a 3.47% daily decline. The turnaround came amid renewed optimism driven by the official launch of Caffeine, a next-generation AI-powered Web3 platform built on ICP.

Unveiled on July 15, 2025, at the “Hello, Self-Writing Internet” event in San Francisco, Caffeine empowers users to build decentralized apps using natural language — no code required. The platform’s debut marks a significant milestone in Internet Computer’s strategy to merge on-chain AI with seamless dapp creation, helping to ignite buying interest late in the day.

Overnight, bears pushed ICP from $5.39 to $5.20 on volume exceeding 850,000 contracts at 03:00 UTC, according to CoinDesk Research’s analysis.

However, the landscape shifted after 14:30 UTC on Tuesday. ICP dropped to $5.27 but then reversed higher on a series of institutional-sized volume spikes. This flurry of activity lifted the token back to $5.34, narrowing the day’s losses and reinforcing buyer presence around the $5.27-$5.28 support band.

Fundamental progress further bolstered sentiment. The DFINITY Foundation has burned over 1 million tokens to tighten supply, while its new vetKeys privacy protocol addresses critical concerns in blockchain data security.

With AI now live on-chain via Caffeine and technical buyers stepping in near key support, ICP appears poised to test resistance at $5.40 once again, backed by ecosystem momentum and strategic upgrades.

Technical Analysis Highlights

• ICP fell 3.47% in 24 hours, with a $0.30 intraday spread from $5.50 to $5.2115.
• Caffeine’s launch introduced AI-powered dapp creation, driving bullish sentiment.
• Bears pushed price lower early; $5.20 support held firm on heavy overnight volume.
• A rebound lifted ICP from $5.27 to $5.34 after a wave of accumulation.
• Notable volume surges: 14:52 (41,106), 15:03 (44,658), 15:29 (17,658).
• Resistance remains at $5.40–$5.42, where rallies repeatedly paused.
• Support re-established at $5.20–$5.28 following recovery.
• Current price: $5.4324, holding above intraday lows and showing upward bias.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

The stablecoin market could start reshaping traditional finance if it grows to about $750 billion, according to Geoff Kendrick, Standard Chartered’s head of digital assets research.

Kendrick, writing in a note Tuesday after a week-long trip through Washington, New York and Boston, said there’s a growing consensus among crypto industry players, fund managers and policymakers that this $750 billion mark would be the tipping point where stablecoins begin to influence government debt issuance, monetary policy and the structure of U.S. Treasury markets through sheer demand.

The current stablecoin market stands at about $240 billion. But Kendrick’s contacts expect it could more than triple by the end of 2026, driven by broadening use and regulatory clarity, particularly if the bipartisan GENIUS Act becomes law — a move that could happen as early as next week.

“In the U.S., once the stablecoin market gets to a certain size, the amount of T-bills required to back stablecoins will likely require a shift in planned issuance across the curve towards more T-bill issuance, less longer-tenor issuance,” Kendrick wrote. “This potentially has implications for the shape of the U.S. Treasury yield curve and demand for USD assets.”

Stablecoins — cryptocurrencies designed to maintain a fixed value, usually $1 — are typically backed by cash-equivalent reserves, most often short-term U.S. government debt. As demand rises, so too does the need to hold vast quantities of Treasury bills, putting stablecoins on a potential collision course with traditional fixed income markets.

Kendrick met with a cross-section of market participants during his U.S. visit, including Bitcoin miners, crypto-native firms, traditional hedge funds and policymakers, he said. Their near-unanimous focus: stablecoins.

Market participants expect a wave of stablecoin issuance, not just from crypto firms, but possibly from banks and even local governments.

Emerging markets may be the most immediately affected. Kendrick flagged concerns that individuals in these regions are using stablecoins as a digital savings vehicle, pulling capital away from local banking systems and central bank reserves. That could challenge financial stability in countries that rely on U.S. dollar liquidity to manage fixed exchange rates or capital controls.

On the U.S. front, stablecoins could shift corporate treasuries away from traditional banking and into tokenized cash alternatives. But how much of their cash businesses move on-chain — and how fast — remains uncertain.

The growing attention is reflected in public markets. Shares of Circle (CRCL), the issuer of the USDC stablecoin, have surged 540% since its public debut last month. The run-up signals investor confidence in stablecoins as a central pillar of the next phase of digital finance.