Markets in Motion: Banks Go Crypto, Inflation Blurs, Metals Shine

Daniel Ledenev
Dec 20, 2025
5 min read

👋 Welcome Back Investors! (December 15 to 19, 2025)

This week delivered a steady flow of corporate and macro catalysts as investors balanced innovation with inflation signals. JPMorgan Chase made waves with its continued push into crypto infrastructure, while PayPal re-entered the spotlight as discussions around its banking ambitions resurfaced. On the macro front, CPI data played a key role in shaping rate expectations, while gold and silver moved as investors reassessed inflation, real yields, and safe haven demand. Decemeber is one of those months where anything can happen. Also, apologies for missing last week’s blog, and thanks for your patience.

🏦 JPMorgan Pushes Deeper Into Crypto Infrastructure

JPMorgan Chase took another major step into digital assets this week, announcing plans to launch a tokenized money market fund, signaling growing institutional confidence in blockchain-based finance. The initiative will allow clients to access tokenized fund shares on public blockchain infrastructure, marking one of the most significant real world use cases of tokenization by a global bank to date. The move highlights how large financial institutions are shifting from experimenting with crypto to actively integrating it into core financial products.

The fund will operate using blockchain technology tied to Ethereum, reinforcing the trend of traditional finance converging with decentralized infrastructure. Investors viewed the development as a long term positive for efficiency, settlement speed, and transparency, while also underscoring JPMorgan’s strategy to stay ahead as tokenization gains traction across capital markets. As regulatory clarity improves and institutions seek cost saving innovations, JPMorgan’s expansion into tokenized assets reflects a broader shift in how Wall Street is approaching the future of finance.

💳 PayPal’s Next Big Step

PayPal is taking a big step toward becoming more like a traditional bank after applying to launch PayPal Bank, a Utah chartered institution backed by FDIC insurance if approved. This would allow PayPal to run more of its own lending and savings products instead of relying on outside banks, giving it better control over costs and the customer experience. The bank would mainly focus on small business lending, an area where PayPal already has experience, having provided over $30 billion in funding since 2013. It also plans to offer interest bearing savings accounts and improve payment processing by connecting directly with card networks. Similar moves by companies like Block and SoFi show a broader trend of fintech firms expanding deeper into banking. For investors, PayPal shares have lagged recently, but the stock is trading at a discount to peers. If PayPal Bank is approved and runs smoothly, it could strengthen PayPal’s business and support long-term growth.

📉 CPI Turns Messy as Shutdown Clouds the Inflation Picture

This week’s CPI report left investors with more questions than answers after disruptions from the U.S. government shutdown distorted how inflation data was collected and calculated. Because October CPI was never released, the Bureau of Labor Statistics had to adjust its methods for November, effectively turning parts of the report into what looks like an unreliable two-month estimate rather than a clean monthly reading. As a result, several inflation components; especially housing and health insurance, showed unusually sharp slowdowns that many analysts view as unrealistic.

The uncertainty matters because CPI is one of the key signals used by the Federal Reserve when setting interest rates. With inflation data now considered “noisy,” markets expect the Fed to rely more heavily on labor market reports in the near term, increasing the importance of jobs data and raising the risk of market volatility. While the report appears inflation-friendly on the surface, many believe it may be understating true price pressures, meaning today’s numbers could be giving a misleading sense of comfort.

🥈 Silver Hits Record High as Rate-Cut Bets Lift Precious Metals

Precious metals had a strong week as silver surged to a record high and gold posted a solid weekly gain, driven by growing expectations that interest rates will be cut next year. Spot silver jumped to an all-time high near $67.45/oz, ending the week up more than 8%, supported by tight supply conditions and strong investment demand. Silver has now risen sharply this year, far outperforming gold as ETF inflows and retail interest continue to build.

Gold also moved higher, gaining about 1% on the week, as softer U.S. inflation and a weakening labor market strengthened the case for easier monetary policy. November CPI came in below expectations, while unemployment climbed to its highest level since 2021, reinforcing expectations that the Federal Reserve may begin cutting rates next year. Lower rates typically support gold by reducing the opportunity cost of holding non-yielding assets.

The rally wasn’t limited to gold and silver. Platinum traded near 17-year highs, while palladium climbed toward a three-year high, with all major precious metals posting weekly gains. Overall, markets are increasingly pricing in a shift toward easier policy, keeping precious metals firmly in focus as investors hedge against uncertainty and changing rate expectations.

👀 Stocks to Watch: What This Week’s Moves Reveal

Markets reacted this week to shifting rate expectations, crypto adoption by big banks, and renewed momentum in precious metals. Inflation data uncertainty and falling confidence in CPI added volatility, while demand for real assets and digital finance infrastructure picked up. Here are four stocks to look out for:

Coinbase (COIN | 8.4%) — Moved lower even though institutional adoption of crypto infrastructure gained credibility following major banks expanding tokenized products. The shift supports the long-term case for regulated crypto platforms despite recent Bitcoin volatility.
SoFi Technologies (SOFI | 0.2%) — Back in focus as PayPal’s banking push highlighted the value of owning a regulated bank charter. SoFi’s existing banking model positions it well as fintech competition moves deeper into traditional financial services.
Pan American Silver (PAAS | 4.1%) — Benefited from silver prices hitting record highs, driven by tight supply and rising investment demand. Silver-focused miners outperformed as the metal continued to lead gold higher.
Newmont (NEM | 3.2%) — Gained attention as gold posted a weekly advance on growing rate-cut expectations. Falling real yields and policy uncertainty increased demand for gold-linked equities as defensive plays.

🛎️That’s a Wrap!

The week wrapped up with markets navigating a mix of policy uncertainty and corporate strategy shifts. JPMorgan’s deeper move into crypto highlighted growing institutional adoption, while PayPal’s push toward launching a bank signaled rising competition across fintech and traditional finance. Inflation data added noise as CPI was clouded by shutdown related distortions, leaving investors unsure how much to trust the signal. Meanwhile, gold and silver rallied strongly on rate cut expectations, with silver hitting record highs as demand surged. With uncertainty around inflation, rates, and financial innovation, investors ended the week cautious, but closely watching where the next clear trend emerges.

Until then, stay focused and stay curious. Catch you next week 👋