Several large banks have restarted principal market making in digital assets, according to people familiar with the desks, after prudential rules clarified how the exposures must be capitalised.
The activity is concentrated in cash-settled futures and in spot trades that settle same-day against a regulated custodian, which limits the balance-sheet holding period.
Clients say the difference is visible in block execution. Trades that previously had to be worked across several venues can now be shown to a single counterparty for a firm price.
Risk committees remain conservative. Position limits are small relative to the same desks' foreign exchange books, and overnight inventory is typically flattened.
Whether the activity scales depends on the next review of capital treatment for tokenised instruments, which supervisors have said will consider settlement finality as a mitigating factor.
