Chris Larsen, co-founder and executive chair of Ripple Labs, was reportedly among those backing the financial venture of US Senator Kirsten Gillibrand’s son as negotiations over a significant piece of crypto-related legislation continue in the Senate.

According to a Thursday Politico report, Larsen was one of a handful of investors backing the American Perpetuals Exchange Corp. (APEC), founded by Theodore Gillibrand. Although Larsen’s exact contribution was not included in the report, the majority of investors contributed between $5,000 to $10,000 each into the derivatives platform, which reportedly raised $30 million.

The investment comes as the New York lawmaker is involved in negotiations over ethics provisions in the Digital Asset Market Clarity (CLARITY) Act, legislation expected to have a significant impact on crypto companies operating in the US, including Ripple. Gillibrand said in May that no one would be voting for the bill without addressing ethics:

“[T]he truth is, is that we cannot allow members of Congress, senior administration officials, presidents or vice presidents, to get rich off of these industries because of their insider status. It is the worst form of pay for play.” 

A spokesperson for the senator referred Cointelegraph to her June 18 statement saying that her son was “a grown adult starting his own independent business” and she had “no involvement in it whatsoever.” Cointelegraph reached out to APEC for comment but did not receive an immediate response.

Related: Fed chair nominee pressed on potential conflicts of interest, independence

Democratic lawmakers have been pushing Republicans, who hold a majority in Congress, to support efforts to add ethics language to the CLARITY Act, citing US President Donald Trump’s ties to the crypto industry. Republican leaders in the Senate are expecting the bill to pass the chamber in July, with Senator Cynthia Lummis saying in June that lawmakers were “working a little bit on ethics,” decentralized finance and illicit transactions as part of negotiations.

Source: Senator Elizabeth Warren

Senate Republicans hold a slim majority in the chamber, meaning they will need some Democratic support to meet the 60-vote threshold for CLARITY to pass.

Congressional schedule squeezes window for CLARITY bill

Lawmakers in the US Senate are on state work periods for the Independence Day holiday. Scheduled to return to session on July 13 and leave for another month-long state work period in August, the window to pass crypto market structure is closing before US election day, which is expected to result in additional delays.

Magazine: AI is banking the unbanked in Africa… faster than crypto

Quick Overview

• Ondo introduces blockchain versions of IVV ETF and Micron stock following SEC guidelines.

• Each digital token maintains 1:1 correspondence with traditionally custodied U.S. securities.

• Broadridge integration enables proxy voting capabilities for token holders.

• Platform leverages Ethereum infrastructure while maintaining regulated asset custody.

• Initiative represents significant expansion of Ondo’s U.S. tokenized securities operations.

Ondo has introduced blockchain-based representations of BlackRock’s iShares Core S&P 500 ETF and Micron Technology stock for U.S. investors. The offering operates within a third-party custodial framework outlined by the SEC in January 2026. This development integrates tokenized U.S. securities into established regulatory and market infrastructure.

Ondo deploys tokenized S&P 500 ETF within U.S. regulatory framework

Ondo has released an Ethereum-based tokenized product tracking BlackRock’s iShares Core S&P 500 ETF. This offering mirrors IVV, a major exchange-traded fund benchmarked against the S&P 500 index. The actual ETF shares continue residing within conventional U.S. custodial arrangements.

Oasis Pro TA, operating as Ondo’s SEC-registered transfer agent subsidiary, creates the corresponding digital tokens. Every token maintains complete 1:1 correspondence with its underlying ETF shares. Qualified custodians secure the tokens, while traditional financial custodians safeguard the physical securities.

This architecture aligns with the SEC’s January 2026 guidance regarding tokenized securities. That guidance outlined an approach where third parties maintain securities while issuing associated crypto instruments. Ondo applied this regulatory blueprint to deliver an operational U.S. tokenized ETF offering.

Micron stock joins Ondo’s tokenized equity portfolio

Ondo has simultaneously introduced a tokenized representation of Micron Technology stock using identical structural principles. Micron shares remain within standard U.S. custody infrastructure. Token holders gain exposure through Ethereum-recorded ownership positions.

The Micron offering advances Ondo’s broader initiative into tokenized equities with full regulatory compliance. This approach eliminates offshore issuance requirements and functions independently of individual issuer sponsorship. Implementation occurs through pre-existing broker-dealer, transfer agent, and custody relationships.

Transfer restrictions operate via participating broker-dealers, custodians, and the transfer agent network. These mechanisms ensure token transactions align with prevailing regulatory standards. Consequently, Ondo bridges blockchain settlement capabilities with traditional U.S. securities frameworks.

Broadridge enables shareholder voting for tokenized equity owners

Broadridge facilitates the rollout by delivering governance infrastructure for tokenized equity participants. Token holders gain access to issuer communications and regulatory filings through conventional distribution channels. Additionally, they can exercise voting rights via ProxyVote.com for blockchain-recorded proxy votes.

Ondo indicates token holders obtain shareholder rights and safeguards comparable to traditional brokerage account owners. These privileges encompass issuer notifications and voting participation linked to underlying securities. This configuration strengthens tokenized securities’ integration with public market governance structures.

The initiative also provides context for Ondo’s comprehensive real-world asset approach. Beyond U.S. borders, its Global Markets infrastructure handles over $1 billion in tokenized securities. That platform encompasses more than 430 equities and ETFs across various supported jurisdictions.

Ondo has simultaneously grown through strategic collaborations in recent periods. In June, the company partnered with Exodus to establish Exodus Markets on Solana. This platform provides qualified users with tokenized stock, ETF, and real-world asset access.

This recent product launch positions Ondo more prominently within U.S. tokenization markets. The implementation merges Ethereum-based issuance with conventional custody, voting mechanisms, and compliance frameworks. This integration creates a more defined pathway for tokenized securities under current U.S. market regulations.

Key Highlights

• Microsoft shares increased 1.86% following the announcement of its Frontier AI business division worth $2.5B.

• The division will assist corporate customers in selecting and implementing AI technologies.

• 6,000 Microsoft employees will be stationed at client locations through this initiative.

• The strategy emphasizes adaptable AI frameworks and integration with proprietary client data.

• This initiative intensifies Microsoft’s competition in the corporate AI consulting market.

Microsoft (MSFT) shares advanced 1.86% to reach $391.42 as the technology company announced plans to expand its corporate AI offerings. After opening lower, the stock reversed course and maintained gains close to its session peak. The upward movement came after Microsoft revealed its intention to establish a $2.5 billion AI-focused business division.

Microsoft Corporation, MSFT

Tech Giant Establishes Frontier Division for Corporate AI Solutions

Microsoft announced the creation of Microsoft Frontier Company, a new operational division designed to assist enterprises in navigating AI technology selection and implementation. The division will serve prominent clients such as Unilever and Novo Nordisk, concentrating on AI frameworks that deliver measurable returns and practical business applications.

The Redmond-based company is allocating $2.5 billion to this initiative as corporate appetite for AI solutions continues expanding. The plan involves deploying 6,000 personnel directly at client sites through a forward deployed engineering model. These deployment teams will comprise technical advisors, customer support professionals, account managers, and vertical market experts.

Rodrigo Kede Lima, previously overseeing Microsoft’s operations across Asia, has been appointed as president of the division. The organization will merge Microsoft’s current AI consulting teams with on-site engineering resources. This shift represents Microsoft’s evolution from merely selling software to actively assisting clients in constructing operational AI infrastructures.

Strategy Focuses on Multi-Model AI Implementation

Enterprise organizations increasingly deploy multiple AI frameworks rather than relying exclusively on a single vendor. Numerous corporations now blend Microsoft platforms, third-party models, and open-source solutions tailored to distinct operational requirements. Consequently, AI implementation has become more expensive and complex to administer.

The Microsoft Frontier Company will guide customers through selecting, integrating, and transitioning between various AI frameworks. Additionally, the division will facilitate connections between these frameworks and each organization’s confidential internal information. Importantly, clients will retain ownership of all outputs and associated intellectual property within their own infrastructure.

Microsoft developed this methodology based on lessons learned from Copilot and other enterprise AI offerings. Initially, the company depended substantially on OpenAI’s technology when developing its AI assistant. However, emerging frameworks from Anthropic, Google, DeepSeek, and competing providers have driven demand for platform-agnostic solutions.

Shares Rise Amid Intensifying AI Consulting Competition

Microsoft’s equity value increased following the disclosure, though shares have struggled year-to-date. The corporation has allocated substantial capital toward data center expansion and generative AI capabilities. Despite these investments, certain AI products have experienced modest uptake among business customers.

This new division positions Microsoft in direct competition with Amazon, Palantir, OpenAI, Anthropic, Accenture, and EY. Amazon recently announced a comparable $1 billion field engineering program targeting AI customers. Palantir has established expertise deploying engineering personnel to serve government agencies and corporate accounts.

Microsoft currently generates income from enterprise consulting and channel partner programs throughout its software portfolio. The company disclosed approximately $2.1 billion in enterprise and partner services revenue during the March quarter. As such, the Frontier division represents an expansion of proven business practices into the broader AI services marketplace.

Digital-first Erebor Bank has entered fundraising talks that could value the lender at at least $8 billion, nearly doubling its $4.35 billion valuation from the end of last year.

Bloomberg, citing people familiar with the discussions, reported that the proposed funding round comes as Erebor’s deposits have expanded rapidly only months after the bank began operating. If completed at the reported valuation, the raise would rank among the largest recent funding events for a U.S. digital bank serving the technology and crypto sectors.

Founded by Oculus creator Palmer Luckey, Erebor has attracted backing from major Silicon Valley investors including Andreessen Horowitz, Peter Thiel’s Founders Fund, and Lux Capital.

The bank has focused on defense technology companies, hard-tech businesses, artificial intelligence infrastructure, and crypto firms, offering services such as blockchain-enabled payments, crypto-backed lending, and financing for industrial projects.

Deposit growth has strengthened Erebor’s fundraising case

According to Bloomberg, customer deposits have climbed to more than $4 billion from $1.1 billion at the end of March. During the same period, the startup added nearly 400 customers, giving investors fresh evidence of early demand for its banking platform.

Luckey told Bloomberg that the recent increase in deposits has come from hundreds of new customers rather than companies he controls, pushing back against suggestions that growth depended on affiliated businesses.

The funding discussions follow the bank’s launch earlier this year, with the reported deposit expansion becoming a central factor in its latest fundraising effort. Bloomberg noted that the proposed round remains under discussion and no final terms have been announced.

National charter cleared the path for crypto banking services

Erebor’s fundraising talks also come after the bank secured regulatory progress that allows it to expand its business under a federal banking framework.

As previously reported by crypto.news, the Office of the Comptroller of the Currency granted Erebor preliminary conditional approval for a national bank charter, positioning the lender to serve the innovation economy, including crypto and AI startups. The approval made Erebor the first de novo bank to receive such authorization since Comptroller Jonathan V. Gould took office in July, 2025.

In a statement released by the OCC, Gould described the approval as part of his commitment to maintaining a “dynamic and diverse federal banking system.” He also said the regulator would not place “blanket barriers” on banks engaging in digital asset activities, provided they operate in a “safe and sound manner.”

Earlier this year, Erebor received approval to become the first new national bank chartered during President Donald Trump’s second term, further strengthening its regulatory position as it expanded its digital banking business.

With its focus on crypto companies, AI infrastructure developers, defense technology firms, and industrial businesses, Erebor has sought to fill part of the gap left after the collapse of Silicon Valley Bank, offering banking and lending products tailored to sectors that have often faced limited access to traditional financial services.