Ripple-backed SBI Holdings has expanded its role in Solana’s institutional ecosystem after its crypto subsidiary secured responsibility for managing the SOL treasury operations of Tokyo-listed WIZE.

According to an announcement from SBI VC Trade, the company will oversee the trading, custody, storage, and management of Solana (SOL) assets held under WIZE’s corporate treasury strategy. The arrangement places SBI VC Trade at the center of WIZE’s efforts to build and maintain a SOL-based treasury as part of its long-term business plans.

Operating through its institutional platform SBIVC for Prime, SBI VC Trade said it will provide services covering cryptocurrency trading, asset management, treasury management, and Web3-related support for large-scale clients. Under the agreement, WIZE will use the platform for transaction execution and custody of its Solana holdings.

WIZE launched its Solana Treasury Business in 2025, positioning SOL as a key component of its balance-sheet strategy.

The company has previously stated that digital assets could eventually complement its existing social entertainment and media operations. Through the new partnership, SBI VC Trade will handle the operational side of acquiring, storing, and managing those holdings.

WIZE selects SBI for institutional Solana support

Details released by SBI VC Trade show that WIZE selected the firm after evaluating multiple service providers. According to the announcement, factors considered during the review included regulatory compliance, operational security, and the ability to support institutional digital asset activities.

Registered to provide crypto-related services in Japan, SBI VC Trade operates under the country’s regulatory framework for digital asset businesses. The company is part of SBI Holdings, which has maintained a long-standing relationship with Ripple through investments and business partnerships.

For SBI VC Trade, the deal adds another institutional client to its growing digital asset business. The company said services offered through SBIVC for Prime are designed for corporate and institutional customers seeking trading, custody, and asset management solutions.

Institutional interest in Solana continues to grow

Elsewhere in the market, several recent developments have pointed to rising institutional engagement with Solana.

Only weeks before the WIZE announcement, Wall Street banking giant Morgan Stanley resubmitted an application for a spot Solana exchange-traded fund in the U.S.

The proposed fund, which would trade under the ticker MSOL if approved, is designed to hold SOL directly while staking a portion of the assets to generate yield for investors. According to the filing, the ETF would be listed on NYSE Arca pending approval from the U.S. Securities and Exchange Commission.

The SBI-WIZE partnership arrives as asset managers, treasury-focused firms, and financial institutions continue to explore Solana-related products and investment strategies.

Separate from its Solana activities, SBI Holdings recently entered the artificial intelligence sector through a partnership with Anthropic. According to SBI, the collaboration will bring Anthropic’s Claude AI technology into company operations. The announcement followed Anthropic’s confidential filing for an initial public offering, which was submitted earlier this year.

Republicans in the U.S. House are moving to fold prediction-market restrictions into a stalled congressional stock-trading ban, as lawmakers assess whether members should be permitted to wager on elections or public policy outcomes. House Administration Committee Chair Bryan Steil plans to attach prediction-market provisions to H.R. 7008, the stock trading ban bill, before it advances to the floor, according to Bloomberg Government. The measure would be paired with new limits on how lawmakers may engage with prediction markets, signaling a more comprehensive approach to financial conduct in Congress.

The effort comes amid heightened regulatory scrutiny of prediction markets and renewed interest in tightening rules governing legislators’ financial activities. As part of the discussion, Steil indicated that the House leadership will be asked to consider the measure, which would blend stock-trading restrictions with enhanced restrictions on prediction-market participation by lawmakers.

No full ban on lawmakers’ prediction market use in Steil proposal

Under Steil’s draft framework, prediction markets would not be banned outright for members of Congress. Instead, certain contracts would be restricted. Bets tied to elections or public policy would face limitations, while wagers linked to sports or entertainment outcomes, such as the Super Bowl, would remain permissible. Steil noted that the House lacks clear rules for how members should engage with prediction markets, suggesting the legislation aims to fill a regulatory gap rather than condemn the product itself. “I don’t think this is a critique of the underlying product one way or the other,” he said.

Regulatory scrutiny and historical context for prediction markets

Prediction markets have increasingly drawn regulatory attention due to concerns about market integrity, transparency, and potential conflicts of interest in political forecasting. Regulators in several jurisdictions have challenged or restricted election-related contracts, gambling considerations, and potential insider-like trading within these platforms. The evolving policy landscape has prompted discussions about how such markets should be treated under existing securities or gambling laws, as well as how they align with broader AML/KYC requirements and consumer protections. Regulatory developments in this area have been analyzed by industry outlets and research teams as part of ongoing debates about market structure and financial supervision. Cointelegraph has highlighted that pushback has occurred in multiple jurisdictions, illustrating the cross-border complexities of integrating prediction markets into mainstream financial regulation.

Polymarket promotions, disclosures, and compliance considerations

Separately, Politico reported that several influencers publicly promoted Polymarket after payments connected to the company’s chief marketing officer. PayPal transaction records reviewed by Politico show at least $350,000 in payments routed through a personal account linked to Polymarket’s CMO, Matthew Modabber, alongside more than $2.5 million directed to hundreds of recipients over a 14-month span. At least 20 creators subsequently posted about Polymarket on X, often without disclosing financial ties, including individuals such as Brian Krassenstein and Riley Gaines. Polymarket did not provide a response when contacted by Cointelegraph prior to publication.

Polymarket rose to prominence in 2024 after users placed high-profile bets on Donald Trump’s election outcome, underscoring the potential real-time signaling value of prediction markets while also highlighting regulatory and governance questions surrounding how such platforms monetize and disclose promotions. The episode feeds into broader concerns about influencer marketing, sponsorship transparency, and the adequacy of disclosure in the rapidly evolving prediction-market ecosystem. Regulators have already expressed interest in the governance and disclosure frameworks of these platforms as part of a wider effort to ensure market integrity and consumer protection.

Context for policy, enforcement, and institutional impact

As lawmakers weigh a more nuanced approach to prediction-market trading by members, the discussion intersects with a broad regulatory agenda involving the U.S. Securities and Exchange Commission, Commodity Futures Trading Commission, and Department of Justice, as well as international frameworks such as the European Union’s MiCA regulation. For crypto firms, exchanges, banks, and institutional investors, the evolving stance toward prediction markets translates into several practical considerations:

• Licensing and oversight: Platforms offering prediction-market products may face enhanced licensing requirements or stricter registration standards, particularly if markets touch on political outcomes or public policy signals.
• AML/KYC compliance: Expanded rules could demand stronger customer due diligence, transaction monitoring, and heightened disclosure obligations for marketing campaigns and promotions tied to political or policy bets.
• Cross-border considerations: Different regulatory regimes could create a patchwork of compliance requirements, influencing where operators can offer services and how they market them internationally.
• Risk management and governance: Institutions must assess the potential reputational and legal risks associated with endorsements, influencer campaigns, and the disclosure of compensation tied to platform promotions.

These developments matter not only for lawmakers’ personal trading but also for the broader ecosystem of prediction-market operators, crypto exchanges, and traditional financial institutions interacting with these markets. The debate illustrates how policy designers are balancing the perceived transparency and real-time information signals from prediction markets against concerns about market manipulation, insider risk, and the appropriate boundaries for political-economic forecasting tools.

Closing perspective

As the House contemplates a more integrated framework for regulating prediction markets alongside a stock-trading ban, observers should monitor how these provisions evolve and how they interact with existing enforcement priorities and international policy harmonization efforts. The coming weeks will clarify whether the proposal gains floor support and how regulators will reconcile technical market design with legal governance, disclosure standards, and cross-border compliance requirements.

Latest developments: Sen. Angela Alsobrooks said she will not support the Clarity Act on the Senate floor unless negotiators reach agreement on ethics provisions and other outstanding issues.

• Alsobrooks said ethics concerns remain a major sticking point, alongside illicit finance provisions and work still needed in the Agriculture Committee.
• She characterized her committee vote advancing the bill as support for continued bipartisan negotiations, not unconditional support for final passage.
• “We’re almost there, but not quite there yet,” Alsobrooks said of the negotiations.
• Alsobrooks joined Rebecca Rettig and Renato Mariotti on CoinDesk’s The Policy Protocol.

The compromise: Alsobrooks defended the stablecoin yield language that drew criticism from JPMorgan Chase CEO Jamie Dimon and parts of the banking industry.

• She said she was among the first senators to raise concerns that allowing interest-bearing stablecoins could trigger deposit flight from community banks.
• According to Alsobrooks, negotiators spent roughly nine months crafting language that bars crypto firms from paying yield solely on stablecoin balances and prevents firms from offering products that mimic bank accounts without bank-like protections.
• She argued the final compromise balances industry innovation with consumer and banking-sector protections, even if neither side is fully satisfied.

Why it matters: Alsobrooks framed crypto regulation as a response to growing consumer adoption rather than a speculative future policy debate.

• She noted that tens of millions of Americans already own cryptocurrency and said lawmakers have a responsibility to establish consumer protections.
• The senator argued that digital assets represent an economic opportunity many younger Americans believe they need as traditional paths to wealth become less attainable.
• She said the goal is to ensure the U.S. remains a leader in digital asset innovation while protecting consumers from harm.

Reading between the lines: Alsobrooks suggested Democratic skepticism toward crypto legislation is driven less by the technology itself than by concerns about corruption, ethics and fraud.

• She pointed to concerns involving President Trump’s business interests and broader questions about ethics in the digital asset space.
• She said many lawmakers remain focused on preventing scams and strengthening protections for consumers who have already suffered losses.
• Alsobrooks argued that remaining engaged in negotiations is the best way to ensure constituents have a voice in shaping the final rules.

What comes next: The senator outlined a short list of priorities needed to move the legislation across the finish line.

• Negotiators must finalize ethics provisions acceptable to both parties.
• Lawmakers are still working through illicit finance language championed by Sen. Catherine Cortez Masto.
• The Agriculture Committee must also reach a bipartisan agreement before final Senate consideration can proceed.

Grayscale Investments has filed with the U.S. Securities and Exchange Commission to launch a spot Canton Coin exchange-traded fund, extending its recent push into crypto investment products just days after its Hyperliquid staking ETF began trading.

According to a registration statement submitted to the SEC, the proposed Grayscale Canton ETF would hold Canton Coin (CC) directly and issue publicly traded shares designed to track the token’s market performance. The filing adds Canton Coin to a growing list of digital assets Grayscale has sought to package into regulated investment vehicles.

Under the proposed structure, investors would gain exposure to CC through brokerage accounts without having to purchase, store, or manage the token themselves. The filing states that the trust’s assets would consist primarily of Canton Coin held on behalf of shareholders.

Market reaction remained muted despite the ETF application. Per data from crypto.news, Canton Coin fell 2.8% over the past 24 hours as investors pulled back from risk assets following Bitcoin’s sharp decline toward the $60,000 support level. The broader cryptocurrency market also came under pressure, with total market capitalization dropping 4.8% to roughly $2.18 trillion during the same period.

Grayscale expands crypto ETF lineup

The Canton filing arrives shortly after Grayscale’s Hyperliquid staking ETF entered the market. The fund received SEC approval and began trading on June 3. The investment product has attracted nearly $5 million in net inflows during its first two trading sessions. 

Grayscale priced the fund with a 0.29% management fee, a level that reportedly helped it compete against rival issuers seeking exposure to Hyperliquid’s HYPE token.

Canton Network, whose native asset is Canton Coin, operates as a blockchain platform focused on financial institutions and enterprise users.

According to project materials referenced in the filing, the network is designed to connect traditional financial infrastructure with blockchain-based systems while offering privacy controls for participants.

Recent months have seen Grayscale pursue multiple crypto-focused ETF products beyond Bitcoin and Ethereum. Alongside the Canton proposal, the company has introduced products linked to XRP and Solana while continuing to add new filings tied to alternative digital assets.

BNB filing advances through review process

Elsewhere in its ETF pipeline, Grayscale recently updated its registration paperwork for a proposed spot BNB ETF.

On June 3, the asset manager disclosed the fund’s ticker symbol through an amended S-1 filing submitted to the SEC. While the update signaled progress in the review process, several details remain undisclosed.

The amended filing does not specify a management fee, indicate whether the trust plans to stake its BNB holdings, or describe any fee waiver arrangements. The revision followed the launch of a competing BNB ETF from investment manager VanEck.

Key Takeaways

• New Glenn, Blue Origin’s flagship rocket, suffered a catastrophic explosion at its Cape Canaveral launch facility in late May 2026, causing significant infrastructure damage.
• Within a week of the disaster, Jeff Bezos announced via X that the company has identified a “solid path forward” to resume launches before year-end 2026.
• Shares of AST SpaceMobile plummeted 15% immediately following the explosion and continue trading approximately $26 below pre-incident prices.
• Karman, which manufactures components for New Glenn, experienced a 13% stock decline to $57.50 and has yet to recover meaningfully.
• Despite market turbulence, both affected companies maintain their original business projections, with AST SpaceMobile targeting early 2027 for commercial operations.

A catastrophic failure struck Blue Origin in late May 2026 when its New Glenn rocket exploded at Cape Canaveral’s launch complex in Florida. The incident caused substantial damage to critical launch facilities and triggered significant volatility across space industry equities.

Just seven days after the disaster, Amazon founder and Blue Origin owner Jeff Bezos took to X to reassure stakeholders, stating the company is running a “24/7 operation with a solid path forward to launch this year.” Blue Origin’s CEO David Limp had expressed similar confidence days earlier.

Market Reaction: Space Stocks Take a Hit

The explosion’s impact on related companies was immediate and severe. AST SpaceMobile shares plunged 15% in the trading session following the incident. The stock remains depressed, currently hovering around $107—roughly $26 below its pre-explosion valuation.

AST SpaceMobile, Inc., ASTS

Karman, a key supplier providing specialized components for the New Glenn launch vehicle, saw its stock crater 13% to $57.50. Trading has remained stagnant near that level in subsequent sessions.

Even Amazon experienced modest losses, with shares dipping approximately 1% after the explosion became public.

Adrian Helfort, chief investment officer at Westwood, characterized the explosion as “a pretty big setback, an under-appreciated setback.” He emphasized the risks of relying on a single dependable launch provider. “SpaceX is great, but you can’t have just one supplier,” Helfort stated.

Business Outlook Remains Resilient

Despite the stock market turbulence, both AST SpaceMobile and Karman assert that the explosion hasn’t altered their fundamental business trajectories.

At the William Blair 46th Annual Growth Stock Conference held this week, AST SpaceMobile executives confirmed their beta direct-to-device service launch remains scheduled for later in 2026. The company continues to target the first half of 2027 for full commercial service deployment. Additionally, AST announced it secured authorization for 10×10 spectrum utilization in Brazil.

Karman CEO Jon Rambeau emphasized that the company’s space division growth projections should remain intact despite the setback. Rambeau disclosed that Karman has already secured over 90% visibility needed to achieve the midpoint of its annual revenue forecast, which projects 25% organic expansion.

William Blair analyst Louie DiPalma characterized Bezos’ confident messaging as encouraging for the broader space sector. DiPalma noted that Blue Origin serves as AST’s primary launch partner and that Karman provides New Glenn with exclusive components, including specialized aerodynamic interstage assemblies and advanced panel protection systems. William Blair’s analysis suggests New Glenn accounts for approximately 5% of Karman’s total revenue.

New Glenn represents a significant advancement in heavy-lift capabilities, designed to transport 45 metric tons to low Earth orbit. For perspective, SpaceX’s workhorse Falcon 9 rocket delivers roughly 23 metric tons.

The space sector has demonstrated remarkable strength recently despite the setback. AST SpaceMobile shares have surged 68% over the trailing month. Rocket Lab has climbed 52% during the same timeframe, while Firefly has gained 31%.

Market enthusiasm has been building in anticipation of SpaceX’s highly anticipated public offering, scheduled to price next week at an estimated $1.8 trillion valuation.

Visa has tested stablecoin settlement using Brale’s SBC token on the Canton Network, as global stablecoin issuance has surpassed $300 billion, according to S&P Global Ratings.

According to a joint announcement from Visa, Brale, and Canton Network participants, the companies have launched a proof of concept that examines whether privacy-enabled blockchain infrastructure can support institutional stablecoin payments without exposing sensitive transaction details.

The test uses SBC, a U.S. dollar-backed stablecoin issued by Brale, to simulate settlement activity on Canton while Visa evaluates whether the token could become part of its stablecoin settlement program. 

Rather than focusing on public blockchain networks, the initiative centers on a permissioned environment built for financial institutions that require tighter control over transaction visibility.

Over the past several years, Visa has steadily expanded its work with blockchain-based payments. 

Earlier programs allowed settlement in Circle’s USDC on public networks such as Ethereum, while more recent projects have explored stablecoin-funded payments, tokenized asset spending, and crypto reward cards across multiple markets.

Canton network tested for private institutional payments

Developed by Digital Asset, Canton connects permissioned blockchain applications used by institutions including JPMorgan, Goldman Sachs, BNP Paribas, and the Depository Trust & Clearing Corporation.

Unlike public blockchains, Canton is structured so transaction data is visible only to involved parties and authorized regulators. The network is also designed to support atomic settlement across tokenized assets, digital cash instruments, and other financial contracts.

In the latest proof of concept, Visa and Brale said they are assessing whether Canton can provide faster and more programmable settlement while allowing banks, payment firms, and market infrastructure providers to maintain strict controls over confidential transaction and settlement information.

The project arrives as stablecoins continue to attract attention beyond cryptocurrency trading. S&P Global Ratings said in a report published Thursday that stablecoin issuance has exceeded $300 billion globally across multiple currencies, although most activity remains tied to crypto markets.

S&P Global Ratings stated that payment stablecoins complying with the Guiding and Establishing National Innovation in U.S. Stablecoins, or GENIUS Act, could expand into merchant payments, remittances, and commercial transactions once regulatory frameworks are finalized. 

The ratings agency identified cross-border payments as one of the most promising early applications, while noting that current stablecoin payment volumes still account for only a small portion of international payment activity.

Recent Visa initiatives show how the company has been testing digital asset payments across different segments of the market. 

In May, Visa partnered with WeFi to explore stablecoin-funded card payments in parts of Europe, Asia, and Latin America. 

Another project announced this month enabled users of a Tether and Fasset-issued Visa card to spend tokenized gold while earning rewards denominated in Tether Gold. 

Separately, SBI Group launched a Visa-linked card in Japan that provides Bitcoin, Ethereum, and XRP rewards through SBI VC Trade.

Banks weigh opportunities and risks

Beyond settlement efficiency, S&P Global Ratings said stablecoins could affect traditional banking economics over time by reducing a portion of payment-related revenue and moving some funding away from insured retail deposits toward larger wholesale balances.

At the same time, the ratings agency said banks that issue their own stablecoins or tokenized deposits could benefit from new fee income and funding opportunities. 

According to S&P Global Ratings, these incentives are encouraging large financial institutions to evaluate infrastructure capable of supporting regulated payment stablecoins and tokenized deposit products while preserving privacy requirements expected in institutional markets.

Arthur Hayes, chief investment officer of Maelstromfund, said he liquidated his entire zcash (ZEC) position after a developer disclosed a potential critical vulnerability in the network’s Orchard Pool.

Hayes, who previously championed the privacy token, said on X that while he believed it was extremely unlikely that any minting would take place, it could not be cryptographically proven impossible.

The now-plugged vulnerability was disclosed by Shielded Labs, which said a major issue went undetected for four years and could have allowed a hacker to print unlimited counterfeit tokens, damaging trust in the crypto’s supply and its value. The token slumped following the announcement and was recently down 42% over 24 hours.

“I read about the exploit yesterday, and didn’t appreciate how it violated my narrative mental map,” said Hayes. “The 30% dump made me rethink, and I had to take profit on the entire position.”

The vulnerability, present since 2022, was discovered on May 29 and fixed June 1, Shielded Labs said.

Hayes, who also co-founded the BitMex exchange, said he would reevaluate his stance moving forward and that, if his assumptions were proven incorrect, he would buy ZEC again “hopefully at lower prices.”

Blockchain analytics and intelligence firm Arkham wrote on X that one large investor lost over half the value of his $174 million ZEC stash.

“He hasn’t sold ZEC for 6 months. Ouch,” said Arkham.

Bearish bets on privacy-focused zcash (ZEC) climbed to a record as the token slumped as much as 50% in 24 hours after a now-plugged vulnerability in its Orchard pool was disclosed.

ZEC recorded roughly $118 million in forced liquidations over the period, CoinGlass data shows.

That is remarkably small for a token whose price halved, suggesting the selling came mostly from spot held tokens rather than a futures-driven move. Only about 14% of zcash’s leveraged positions got wiped out; the number would have been far larger if a leverage cascade had driven the slide.

In comparison, about $335 million in bitcoin BTC$61,029.69-tracked futures were liquidated over the same window even though the largest cryptocurrency fell only a few percent. Ether slipped a similar amount and liquidated $278 million.

Open interest — the total value of unsettled futures bets — rose to a record high in ZEC terms, suggesting traders opened new positions rather than closing them.

The long/short ratio, the number of traders betting on an increase versus a decline, shows those positions skewed bearish. On Binance, the ratio sat below 1 across retail investors at 0.77, whale accounts at 0.80 and whale positions at 0.85. Traders on OKX were more bearish, with retail at 0.67 and whale accounts at 0.72. Only Bybit’s retail traders leaned long, at 1.49.

Short investors sell securities they don’t actually own, betting the price will drop before they need to close out their positions and they’ll profit from the difference. Long investors own the securities to benefit from any increase.

The ratio indicates zcash is heavily shorted after a spot-led drop. If the selling slows and the price steadies, those shorts could be forced to buy to cover their positions, fueling a sharp bounce.

It’s worth remembering that ZEC, even after losing more than half its value in two weeks, is still up roughly 490% over the past year.

No way of knowing

The catalyst for the price drop was the disclosure by nonprofit Zcash developer Shielded Labs of a vulnerability in Zcash’s Orchard privacy pool that, if exploited, could have let an attacker create counterfeit ZEC that no one could detect.

The Orchard flaw had been live since the pool debuted in May 2022, going unnoticed for four years. It was found only last week by security engineer Taylor Hornby using Anthropic’s Opus 4.8 model and patched in an emergency fix by June 1.

The damage is less about the bug itself, which is now closed, than what Shielded Labs admitted alongside it. Because of the way Orchard’s privacy works, there is no cryptographic way to prove whether anyone exploited the flaw before it was fixed.

The firm said it probably was not, but it cannot be sure, and that uncertainty hangs over the token’s entire supply.

Arthur Hayes, the chief investment officer of Maelstrom, said he sold his entire zcash position as a result.