Bitcoin Game Theory, Mastercard’s Crypto Initiatives & More

Welcome back!

This is J264G and this week I’ve got these titbits for you:

• Terminally Online: Charles Schwab expands 24/5 trading to rival DeFi.

• Game Theory: Abu Dhabi’s wealth fund is now a top BTC ETF holder.

• Locked In: 30% of Mastercard’s 2024 transactions were tokenized.

Robinhood’s crypto numbers suggest a resurgence of retail investors—a new bullish cycle might just be taking shape.

Now, let’s jump right into this week’s newsletter!

Click on any underlined heading/hyperlink to learn more.

Spotlight

Game Theory

Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund, is now the 7th largest holder of BlackRock’s Bitcoin ETF (IBIT), with a $461 million stake.

This investment is not just another adoption milestone—it signals the start of a global game-theoretic shift in how nations and sovereign entities think about Bitcoin as a strategic asset.

One of the most relevant game-theoretic models in this context is the Prisoner’s Dilemma, where two rational actors must decide whether to cooperate or compete, knowing their decisions affect each other.

In this case, the “prisoners” are nation-states facing a choice:

• Ignore Bitcoin: Dismiss Bitcoin (or Bitcoin ETFs) as a speculative asset. 

• Adopt Bitcoin: Accumulate Bitcoin (or Bitcoin ETFs) ahead of other countries. 

The strategic dilemma for countries is whether they should act early or wait. If a country waits too long, other nations will accumulate Bitcoin first, increasing its scarcity and cost of entry. Meanwhile, countries that adopt Bitcoin early gain a significant advantage, much like those who were early adopters of gold-backed financial systems historically benefited from greater economic stability and leverage.

From a geopolitical perspective, central banks, sovereign wealth funds, and financial institutions will closely monitor how Mubadala’s Bitcoin ETF investment performs. If it proves to be a strategic success, the fear of falling behind may drive additional nation-state adoption—triggering a domino effect. 

By making a large-scale commitment, Mubadala has set a powerful precedent—raising the stakes and accelerating crypto’s global expansion.

Let the games begin!

Chart Of The Week

News Bites

Crypto Rails: Robinhood is increasingly leveraging stablecoins for settlements, further integrating crypto rails into its financial infrastructure. Generally, Robinhood’s crypto expansion is thriving—check out the company’s 2024 results for the latest insights.

Money Market: Wall Street giant Franklin Templeton has brought its $594 million Nasdaq-listed OnChain U.S. Government Money Fund (FOBXX) to Solana, enabling investors to access tokenized shares via the Benji app.

Locked In: In a filing with the SEC, Mastercard reported that 30% of its transactions in 2024 were tokenized. The filing also highlights rising competition from blockchain technologies, particularly stablecoins.

European Awakening: Speaking of tokenized assets, Deutsche Bank-backed Taurus has integrated its custody and tokenization platforms with Solana—reinforcing Europe’s growing focus on tokenized assets.

Terminally Online: Charles Schwab has expanded its 24/5 trading access on the thinkorswim platform, allowing retail clients to trade more frequently. TradFi is inching closer and closer to DeFi-style accessibility.

Stable Startups: Meow, a banking and treasury management platform for startups, now supports stablecoin transactions on Solana—enabling users to send and receive USDC directly from their existing cash balance.

Federal Reflections: Federal Reserve Board Governor Christopher Waller has shared his insights on the evolving stablecoin market, stablecoin adoption, and stablecoin regulation.

Meeting Logs: The SEC’s newly formed Crypto Task Force is maintaining a public log of its meetings—stay updated on how SEC regulators are engaging with crypto here.

Caught In 4K

Weekly Take

Keks & Giggles

And that's a wrap!

If you'd like to reach me, respond to this newsletter or reach out to me on 𝕏.

Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}