Digital Bytes 28th January 2026
A weekly analysis of who, how, where and why blockchain and digital assets are being used globally in various industries
The phantom dollar - Tether has evolved into a “phantom dollar”: a privately issued digital proxy for the US currency that underpins crypto trading, liquidity and collateral flows, around the clock. With more than $135bn in US Treasuries, Tether now sits at the intersection of digital markets and sovereign debt. Its scale brings efficiency, but also systemic risk. As regulation tightens, the stability of global financial markets’ potential is reliant on an unregulated single issuer, for now.
The ultimate programmable money: why individuals should outsource financial decisions to AI oversight - in 2026, “programmable money” shifts from concept to reality as individuals outsource financial stewardship to AI agents so as to bypass human biases such as impulse spending and loss aversion. These autonomous guardians utilise real-time APIs to enforce budgets and optimise investments with data-driven precision. Whilst AI handles the high-volume mechanics of wealth accumulation, “human oracles” (specialised lawyers) remain vital to oversee these agents, providing the ethical overrides and legal certifications necessary to ensure technology serves human values.
Hybrid or bust: the only way Web3 hits the masses - Web3’s original dream of total decentralisation hit a wall: Bitcoin handles only 3-7 transactions per second, Ethereum around 142, all too slow for everyday users. The realistic fix is a hybrid approach: Layer 1 blockchains handle secure final settlement, whilst Layer 2 rollups deliver fast, low-cost transactions. Aave’s off-chain Snapshot voting, Decentraland’s Catalyst servers and ENS’s flexible name resolution prove hybrid systems give a smooth Web2-like experience whilst keeping trust intact. Layer 3 chains and shared sequencers will make Web3 even faster and more specialised. Hybrid is the only way forward.
Why Wall Street’s latest tokenisation rush will fail without market readiness - Wall Street’s new tokenisation wave will stall without market readiness. A Swiss tokenised gold product failed because gold buyers rejected digital wrappers and crypto investors ignored gold. Infrastructure can fix custody and settlement, but adoption requires aligning blockchain’s 24/7 markets with legacy business hours, weekend pricing distortions, liquidity gaps, and always‑on compliance. Tokenisation’s real value is in illiquid assets like private equity and real estate, where evolving regulation and infrastructure can finally support scale.