Digital Assets Monthly
Financial System’s Core Plumbing Built on Digital Asset Networks
November highlighted accelerating institutional adoption of digital assets, driven by clearer regulation and maturing infrastructure. Highlights included Bitcoin going mainstream into one of the largest endowment portfolios, further U.S. regulatory steps enabling banks to hold digital assets, and payment giants deepening cryptocurrency integration. Institutions are now treating crypto as a legitimate asset class for diversification and hedging, while financial firms adopt the technology for efficiency and new payment rails.
Three key announcements in November highlight this momentum:
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1. Harvard’s Endowment Makes Bitcoin Their Largest Publicly Disclosed Holding – November 15, 2025 Harvard University's endowment, managed by the Harvard Management Company (“HMC”), made headlines with a 257% increase in its exposure to Bitcoin via a spot ETF. The position now stands at $442.8 million, HMC's largest publicly disclosed holding, accounting for about 20% of its reported U.S. listed public equity portfolio, though the total allocation remains under 1% of the endowment's $57 billion in assets.1 Implications:
By pioneering this integration, Harvard positions itself at the forefront of innovative portfolio management, potentially inspiring other institutional investors. |
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2. OCC (Treasury Dept.) Authorizes U.S. Banks to Hold Ethereum on Balance Sheets – November 18th, 2025 The Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1186, providing new guidance that permits national banks and federal savings associations to hold limited amounts of native cryptocurrencies, such as Ethereum (ETH), Bitcoin (BTC), Solana (SOL), and XRP, directly on their balance sheets. This permission addresses a key operational bottleneck: without native tokens like ETH, banks couldn't efficiently move customer assets on-chain (e.g., transferring stablecoins or settling trades on Ethereum) without relying on cumbersome workarounds, such as third-party fee providers or spot purchases, which introduce delays, costs, and risks. Implications:
This guidance reassures stakeholders by prioritizing "safe and sound" practices, mitigating systemic risks and building trust in bank-managed crypto operations. |
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3. XRP Landmark Pilot Program with Mastercard – November 6, 2025 Ripple announced a landmark pilot program in collaboration with Mastercard, WebBank (a regulated U.S. bank acting as the card issuer), and Gemini (a major crypto exchange). The initiative focuses on exploring the settlement of fiat credit card payments using Ripple's USD stablecoin, RLUSD (Ripple USD), on the XRP Ledger which is Ripple's public blockchain powered by XRP. Implications:
The announcement coincided with Ripple securing a $500 million funding round at a $40 billion valuation, led by investors like Fortress Investment Group and Citadel Securities, underscoring growing institutional confidence in Ripple's ecosystem.2 |
Summary
November’s developments underscore growing mainstream adoption of digital assets, fueled by increasing regulatory clarity and technological maturity. Notable milestones of Harvard Management Company’s disclosed investment in a spot Bitcoin ETF, continued regulatory progress toward allowing banks to custody digital assets and easing accounting burdens, and major payment networks (such as Mastercard and Visa) expanding cryptocurrency-enabled card programs and stablecoin settlement capabilities. These examples illustrate that institutional investors increasingly view crypto as a distinct asset class for diversification, yield generation, and inflation hedging, while financial institutions are integrating the technology for operational efficiency and new revenue streams.
1Tradingview.com, “Harvard Increases Bitcoin ETF Holdings by 257%, Ranks Above Microsoft, Amazon”, Nov. 2025.
2FinTech Weekly, “Wall Street Funds Back Ripple in November Deal with Rare Investor Protections”, Dec. 2025.
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For informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. This material is not intended to provide, and should not be relied upon for investment, legal, or tax advice. Consult your financial professional for guidance specific to your situation.
Investing involves risk, including the possible loss of principal. Investments in blockchain technology and digital assets are subject to a variety of risks, including high volatility, lack of regulation, cybersecurity incidents, theft or loss, developmental risk, and the potential for competing platforms or technologies. The technology is new and many uses may be untested. Investments concentrated in a single industry, such as blockchain, may exhibit higher volatility and be more vulnerable to factors affecting that industry.
Exposure to cryptocurrencies, such as bitcoin, is highly speculative and may be subject to extreme volatility and risk of total loss. Investors should be prepared to lose their entire investment. The regulatory and tax treatment of digital assets and cryptocurrencies is uncertain and evolving.
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