When price stops working, yield starts mattering

The article argues that the cryptocurrency market is shifting from a speculative bull phase, where price appreciation dominated, to a more mature phase where yield generation is crucial for investors holding assets through downturns. Ruchir Gupta highlights that crypto-native yield, such as ETH staking (2.5%-4% annualized) and Solana validator rewards (6%-8%), is real and independent of spot price movements, evidenced by high ETH staking participation despite price weakness. Institutions are noticing, launching staking-linked ETFs, but current products are passive. A true fixed-income market for crypto requires instruments that allow active management of yield variability and illiquidity, similar to traditional finance's strip bonds or zero-coupon instruments, to separate income from principal exposure.

Separately, Clara García Prieto discusses the inevitability of Bitcoin becoming mainstream collateral, which redefines the concept of collateral itself due to its digital, finite nature and key-based control. While this offers companies a way to gain liquidity without selling, it introduces risks. Centralized models face custody risk, while DeFi models introduce smart contract and protocol risks through tokenization. Bitcoin's volatility prevents it from fully replacing traditional collateral, necessitating overcollateralization and strict risk management. The article concludes that while Bitcoin as collateral is growing, preparedness for its unique risks is lacking.

The weekly headlines section notes Bitcoin's physical resilience, the Ethereum Foundation's updated mandate focusing on self-sovereignty, the ECB's tokenized finance roadmap, Mastercard's expanded Crypto Partner Program, and new CFTC guidance for prediction markets. The Chart of the Week shows crypto card volumes hitting a record $140 million, driven by RedotPay, even as broader Neobank tokens lag, indicating high utility usage despite asset valuation softness.

(Source：CoinDesk)