Key Insights

• One of the big crypto players is moving out of his holdings in Ethereum and allocating his funds to ZEC, HYPE, NEAR, VVV, and LIT.
• The reason behind the portfolio change is related to valuation issues rather than any problem with the Ethereum blockchain platform itself.
• Zcash fell sharply below important support levels even though it was highly liquid and actively traded on markets.

Ethereum Exit Points to New Period of Altcoin Rotation

Altcoin Rotation is now gaining wide coverage in crypto circles after one notable Ethereum community member was reported to sell off his entire ETH holding and then invest the proceeds into an equally diverse selection of alternative coins. The news has generated buzz as it indicates an evolving investing trend based on valuations and not technology.

Based on reports by BSCN, the individual invested in five altcoins — VVV, NEAR, ZEC, HYPE, and LIT. The action implies a deliberate strategy geared toward diversifying into various blockchain categories, from privacy blockchains and DeFi networks to AI platforms and broader blockchain ecosystems.

Diversification Among Various Crypto Sectors

In the reorganized portfolio, there is a pattern whereby investors are moving away from focusing only on the major large-cap coins. Instead of relying on a single market sector, this particular portfolio is spread across various investment narratives and ideas.

Among the various investments made, the coin that was allocated the highest value was Lit Protocol (LIT). This implies that the confidence level in LIT is high compared to other investments. The remaining coins include VVV, NEAR, ZEC, and HYPE.

By using such a technique, an investor avoids relying heavily on just one market narrative since the allocation in the portfolio gives flexibility should there be a change in preferences regarding market sectors. In crypto markets, investors routinely shift their focus among various ecosystems.

The Most Prominent Gains Belong to Zcash

A prominent coin featured in this reallocation is Zcash (ZEC). For many years, the coin has been considered a top privacy-oriented project in the crypto space, despite market attention sometimes being diverted to emerging blockchain networks.

Certain types of digital assets tend to get attention from the investment community during particular market phases, especially those related to financial privacy. The presence of Zcash in this portfolio suggests continued investor interest in this asset class. Among the visual materials published along with the report were the logos of Zcash and Hyperliquid.

Weaknesses in Technicals Create Pressure on Zcash

Although Zcash is experiencing renewed interest among investors, the coin performed poorly during recent trades. According to current statistics, it was trading around $559.09 with losses of 10.18% over the last day.

Despite the sharp fall, interest in the cryptocurrency remained. Zcash had a market capitalization of approximately $9.34 billion and recorded about $1.33 billion in daily trading volume.

Technical data showed weaknesses in the short-term structure. Buyers attempted to defend an important support zone between $600 and $620 with several recovery attempts during the session. Nonetheless, those recoveries failed to establish positive momentum.

A sequence of lower highs began forming, indicating decreasing buying power and increased seller domination. The major breakthrough occurred when support at $600 broke and sellers drove the price down toward the $559 area. Now that a key support has turned into resistance, the question is whether Zcash can stabilize within the current range.

U.S. spot Bitcoin ETFs have recorded $3.05 million in net inflows on Thursday, ending a record 13-day withdrawal streak that erased more than $4.4 billion from the funds since mid-May.

According to SoSoValue data, Thursday’s modest inflow brought an end to the longest run of outflows since spot Bitcoin ETFs launched in the United States. The reversal came after nearly three weeks of continuous redemptions that coincided with a sharp decline in Bitcoin prices and a steep drop in ETF assets.

Despite the positive reading, the scale of the inflow remained small compared with the preceding withdrawals. During the 13-session stretch, daily outflows regularly exceeded $100 million, while Thursday’s $3.05 million gain failed to offset even a fraction of the capital that had exited the category.

Fund-level data showed that BlackRock’s IBIT accounted for the turnaround. SoSoValue reported that the fund attracted $47.66 million in fresh capital, while products from Fidelity, Bitwise, and Ark Invest continued to post net outflows.

Pressure on the sector has been visible in total assets under management. Spot Bitcoin ETF holdings fell to $80.40 billion by Thursday, down from $104.29 billion at the beginning of the outflow streak. The decline occurred as Bitcoin lost ground over the same period, falling from levels above $74,000 to below $64,000.

Bitcoin ETF assets remain below recent highs

Data from CheckonChain showed that spot Bitcoin ETFs currently hold 1.277 million BTC. While that figure sits slightly above the February low of 1.274 million BTC, it remains about 7.2% below the record level reached in October.

Market conditions remained unstable even after the inflow streak ended. Bitcoin (BTC) traded near $63,800 on Thursday after briefly recovering from earlier weakness. By Friday, the cryptocurrency had plunged to an intraday low of around $59,100, its lowest level since October 2024, before rebounding above $61,000.

Recent ETF flow trends have attracted increased attention from market participants. In a recent note, Citigroup analysts argued that investors may be underestimating the importance of ETF demand in Bitcoin’s price performance.

The bank pointed to sustained withdrawals from spot Bitcoin ETFs as a major factor behind recent weakness, noting that the products recorded $2.43 billion in net outflows during May and another $1.40 billion during the first days of June.

Ether ETFs and HYPE funds continue to diverge

While Bitcoin funds returned to positive territory, spot Ether ETFs also halted a prolonged period of withdrawals.

According to SoSoValue, U.S. spot Ether ETFs brought in $19.30 million on Thursday, June 4, after 17 consecutive trading days of net outflows. BlackRock’s ETHA generated the entire inflow, while all other Ether funds finished the session with no net movement.

Assets held by spot Ether ETFs stand at $9.78 billion, equivalent to roughly 4.57% of Ethereum’s circulating market capitalization. Cumulative net inflows since the products launched in 2024 have reached $11.21 billion, although total assets remain about $2 billion below their earlier peak.

A different trend continued in the newly launched Hyperliquid ETF segment. The three HYPE-focused ETFs added another $12.15 million on Thursday, extending an uninterrupted inflow streak that began with their debut on May 12. Grayscale’s HYPG ETF contributed $4.70 million on its first day of trading.

A $56 billion Illinois state budget advanced by the General Assembly on Monday includes a new digital asset tax provision that could affect crypto users and firms operating in the state. The measure, described by supporters as a revenue tool, would levy a 0.2% tax on digital asset transactions carried out by entities acting as digital asset brokers in Illinois. According to Cointelegraph, the provision is framed as a “privilege tax” within the Digital Asset Privilege Tax Act amendment to the budget.

The 1,624-page budget bill, part of the revenue and tax package intended to fund the 2027 fiscal year, was approved largely along party lines. If enacted, the tax would require digital asset brokers to register with the state and comply with enforcement provisions designed to govern Illinois-based digital asset business activity. The legislation also sets out criminal penalties for noncompliance, including potential Class 3 felonies if brokers fail to adhere to the registration and operational requirements starting January 1.

Governor JB Pritzker has indicated an intention to sign the bill into law, but as of Friday morning had not yet issued the formal signature. Lawmakers project that the crypto tax would generate roughly $60 million for the state’s 2027 budget.

Key takeaways

• The Illinois budget includes the Digital Asset Privilege Tax Act amendment, introducing a 0.2% tax on digital asset transactions by brokers operating in Illinois.
• Brokers would face mandatory registration and compliance duties; failure to comply could result in a Class 3 felony with 2–5 years’ imprisonment and fines up to $25,000.
• The measure is expected to raise about $60 million in the 2027 fiscal year as part of the state’s revenue package.
• Industry groups, including the Digital Chamber and the Illinois Blockchain Association, have publicly criticized the move, arguing it was buried in a large budget bill and lacks adequate stakeholder engagement. They contend the policy could be economically destructive and leave Illinois-based firms at a disadvantage.
• The tax comes amid broader policy actions by the governor and state authorities regarding crypto activity, including executive-order–level actions on related areas such as prediction markets.

Tax framework within the Illinois budget

The centerpiece is the Digital Asset Privilege Tax Act amendment embedded in the 2027 budget package. The 0.2% levy would apply to transactions conducted by entities acting as digital asset brokers in the state, with the expectation that brokers register and adhere to specified guidelines governing their Illinois operations. The legislation frames the tax as a privilege charge tied to the digital asset business activity conducted within Illinois’ borders, aiming to augment state revenue while shaping the regulatory perimeter for brokers.

Registration requirements would take effect in the new year, and brokers who fail to register or comply with the act’s provisions could be charged under Illinois’ criminal code as a Class 3 felony. The penalty carries a potential prison term of two to five years and fines up to $25,000 per violation, reflecting a stringent approach to enforcement for noncompliant entities.

The budget bill remains subject to the governor’s signature. If signed, the measure would formalize the tax into law and pave the way for the state to begin collecting the revenue anticipated from the levy. Illinois legislators and supporters view the tax as a mechanism to fund the 2027 budget while establishing a defined regulatory framework for digital asset activity in the state.

Industry response and regulatory implications

Industry advocates have pushed back against the measure, arguing that the tax was tucked into a sprawling budget proposal with limited stakeholder engagement. In public statements, the Digital Chamber and the Illinois Blockchain Association described the proposal as economically destructive and warned that it would impose an undue burden on Illinois-based crypto firms without adequate notice or preparation time. They also pointed to the claim that no other state has imposed a similar tax, signaling a potential competitive disadvantage for Illinois in attracting crypto-related business.

ThePushback underscores broader regulatory frictions between state-level fiscal measures and the fast-evolving digital asset landscape. If enacted, the tax would shape licensing requirements for brokers, affect KYC/AML compliance arrangements, and influence how exchanges and other intermediaries structure their Illinois operations. Moreover, the move could influence how financial institutions assess cross-border activity and banking relationships with Illinois-based crypto firms, given the state’s attempt to formalize its treatment of digital asset intermediaries.

Policy context: prediction markets, enforcement priorities, and the broader regulatory landscape

The proposed crypto tax aligns with a broader regulatory posture taken by Governor Pritzker toward digital asset activities. Earlier in the year, the governor signed an executive order banning state employees from engaging in prediction market event contracts with platforms such as Kalshi and Polymarket, citing concerns that such bets could leverage nonpublic information for personal gain. The executive order signals a broader emphasis on governance and oversight of crypto-related activities within the state and complements the tax proposal as a coordinated policy stance.

From a wider regulatory perspective, Illinois’ approach interacts with ongoing federal and international frameworks. The state’s action sits alongside debates about licensing regimes, AML/KYC standards, and the relationship between digital asset brokers and traditional financial governance. As policymakers navigate MiCA-like considerations and U.S. oversight from agencies such as the SEC, CFTC, and DOJ, Illinois’ tax design raises questions about harmonization with national standards, cross-border operations, and the role of state-level measures in shaping the regulatory landscape for crypto firms, banks, and investors.

Closing perspective

With the bill awaiting the governor’s signature, the key questions revolve around how the registration regime will be implemented, how enforcement will unfold, and what adjustments, if any, lawmakers will consider in response to industry feedback. The Illinois measure could set a notable precedent for state-level digital asset taxation, with implications for licensing, compliance, and the competitive positioning of crypto firms within Illinois and beyond.

Singapore-based crypto travel platform Travala has rolled out what it calls the world’s first agentic AI travel protocol. The system enables AI agents to search, reserve, and pay for hotels using USDC on Base, a Coinbase-backed layer-2 network. The move extends agentic AI stablecoin payments into travel bookings and positions Travala at the forefront of AI-enabled checkout infrastructure for travel commerce.

The Travala Travel Multi-Chain Protocol (MCP) is live through Claude Desktop, with external developers invited to integrate the capability into their own travel-agent experiences, the company said in a statement shared with Cointelegraph. The protocol bridges Travala’s hotel catalog with AI agents via the Model Context Protocol, an open standard designed to connect AI applications with external tools. Payments are conducted over Coinbase’s x402 protocol on Base, enabling gasless USDC transactions, near-instant settlement, and typical booking costs around $0.01.

Key takeaways

• Travala launches an agentic AI travel protocol on Base, enabling AI agents to book hotels using USDC with near-zero fees and fast settlement.
• The system links Travala’s inventory to AI agents via the Model Context Protocol, with payments executed through x402 on Base and ERC-7715 session keys allowing in-wallet signing control.
• Final payment authorization remains with the traveler, meaning the protocol is autonomous in its operations but not fully hands-off for end users.
• Travala’s network covers more than 2.2 million hotels, including listings from Marriott, Hilton, and IHG, with plans to expand to flights and other travel products.
• A 10% Coinbase Wrapped BTC (cbBTC) rebate is offered on completed stays booked through the AI agents, adding a financial incentive for developers and travelers.

Autonomy in practice: what changes for travelers and builders

Travala frames the MCP as a meaningful step toward an autonomous travel economy, while still preserving user control. CEO Juan Otero described the launch as “the death of the checkout button,” framing it as a move from a static checkout experience to an ongoing, agent-led shopping process. Even as AI agents search and propose options, the traveler retains final signing authority within their wallet, meaning the AI merely initiates payment requests that require human approval before funds move.

The protocol uses ERC-7715 session keys to manage interactions. This design allows an AI agent to request payment while the traveler’s wallet holds the ultimate signing power. In practice, this supports a continuous conversational thread—an AI agent can carry context across searches, bookings, and cancellations in a single chat, reducing repetitive prompts and friction in the booking flow.

Connecting inventory with agent-enabled commerce

Travala says its MCP taps into a catalog of over 2.2 million hotels, with listings sourced through prominent aggregator partners and major brands, including Marriott, Hilton, and IHG. The company highlighted that the integration could eventually extend beyond hotel stays to other travel products, such as flights. The broader vision includes leveraging Travala’s AVA loyalty token to support future MCP use cases, potentially tying loyalty rewards to AI-driven booking workflows.

External developers can adopt Travala’s MCP via Claude Desktop, enabling other travel agents to embed the same AI-enabled checkout flow. While automation advances, the model preserves a human-in-the-loop approach to payments, providing a security and control layer that may appeal to users wary of fully autonomous transactions.

Context within the evolving AI-payments landscape

Travala’s announcement arrives amid a growing wave of AI-driven payments infrastructure within the crypto ecosystem. Industry coverage has noted a surge in agentic payments on Base, with x402-linked wallets reportedly surpassing 100 million transactions. The broader ecosystem includes solutions from Fireblocks, MoonPay, Exodus, and Oobit, all aiming to enable AI agents to spend stablecoins and other digital assets without manual intervention at every step.

Chainalysis has documented the rising use of agentic payments on Base, a trend that has supported broader experimentation with programmable payments in AI workflows. The combination of a stablecoin (USDC), a scalable L2 network (Base), and an open toolset (Model Context Protocol and ERC-7715 session keys) creates a cohesive environment for automated travel payments that still respects user consent and control.

Strategic implications for the travel-tech and crypto sectors

Travala’s MCP signals a shift from purely crypto-enabled checkout to AI-assisted, programmatic booking workflows. For investors and developers, it highlights a frictionless, low-cost payment layer that could accelerate adoption of AI agents in live commerce. The integration with major hotel brands underscores the potential for large-scale inventory to be accessible through AI channels, potentially expanding the use cases for stablecoins in consumer travel.

From a strategic perspective, the combination of gasless payments, near-instant settlement, and predictable fees could incentivize larger, more complex bookings to move through AI agents. Yet the model’s reliance on traveler approval means risk controls remain in place, reducing the likelihood of unauthorized charges and aligning with user-centric security expectations. This hybrid approach—automated negotiation and human oversight—may become a template for other sectors exploring agentic commerce.

Broader adoption and next steps

Travala has signaled that the MCP will evolve beyond hotels, with flights and other travel products on the roadmap. The venture also points to potential expansions of the AVA loyalty program, potentially integrating reward mechanics with AI-driven booking journeys. As more developers adopt the framework, the breadth and depth of AI-empowered travel options could grow, drawing in users who value speed, transparency, and control in their online travel experiences.

Observers will want to monitor how adoption scales among developers and whether the autonomous capabilities can mature to reduce the amount of human intervention required for routine bookings. The interplay between user trust, safety measures, and AI efficiency will shape how quickly and widely agentic travel becomes mainstream.

Additional reporting on related developments in AI-driven payments and agent-based commerce continues to emerge, with industry outlets highlighting parallel efforts to streamline settlement and reduce operational frictions across platforms.

As the ecosystem evolves, Travala’s MCP could become a test case for how autonomous financial workflows interact with real-world consumer purchases, potentially setting a benchmark for the next wave of AI-enabled travel experiences.

Travala was founded in 2017 and currently accepts more than 100 cryptocurrencies alongside fiat currencies, positioning itself as a bridge between traditional travel booking and crypto-enabled commerce.

Readers should watch for updates on the MCP’s expansion into flights and other travel categories, as well as any regulatory or security considerations that emerge as AI agents gain more autonomy in payment workflows.

South Korean police have reportedly launched the country’s first illegal gambling probe into local Polymarket users, widening regulatory scrutiny of the decentralized prediction market.

The investigation is led by Gangwon Provincial Police and was requested by the National Police Agency, according to ChosunBiz. 

Users may face fines of up to 10 million won ($6,500) under Article 246 of the Criminal Act covering gambling and habitual gambling. Under current law, Sports Toto is the state-authorized sports betting platform, while unauthorized online betting can be prosecuted under South Korean gambling laws.

The reported probe adds to a broader global crackdown on prediction markets, with several jurisdictions blocking or restricting access to Polymarket. Some countries have completely blocked or prohibited Polymarket, including Singapore, Poland, Portugal, Hungary, Ukraine, Brazil and Indonesia. Polymarket remains accessible in South Korea.

The news comes after President Lee Jae-myung’s ruling Democratic Party swept most major local elections held on Wednesday, while conservative Oh Se-hoon won another term as mayor of Seoul, Reuters reported.

Prediction market on whether Lee Jae-myung would be out as president of South Korea in 2026. Source: Polymarket.com

One Polymarket contract on whether Lee Jae-myung would be out as president saw nearly $54,000 in total trading volume, data shows.

Related: Polymarket users cry foul after Strategy sale market resolves to ‘no’

Political betting faces growing scrutiny

The latest probe adds to the growing regulatory scrutiny of political betting on Polymarket.

In January, US lawmakers proposed legislation aimed at restricting political prediction market trading by government officials after a Polymarket user netted over $400,000 on a contract related to the removal of then-Venezuelan President Nicolás Maduro, fueling insider trading concerns.

In May, the chair of the US House of Representatives’ Oversight and Government Reform Committee sent letters to the CEOs of Kalshi and Polymarket, questioning their response to the insider trading allegations on the platforms.

In response to the growing scrutiny, Polymarket said it was weighing the implementation of a mandatory identity verification system more in line with global Know Your Customer (KYC) verification standards, Cointelegraph reported on May 27.

Polymarket list of geoblocked countries and regions. Source: Polymarket.com

Polymarket said it was entirely geoblocked in 35 regions at the time of writing.

Magazine: Polymarket seeks Japan entry, Harvard dumps entire ETH position: Hodler’s Digest, May 17 – 23

Bitcoin (BTC) is heading for its worst weekly performance since November 2022, down around 15% week-to-date as of Friday.

BTC/USD weekly chart Source: TradingView

BTC was trading near $62,500 after briefly dropping toward $61,000 earlier in the session. The roughly $1,500 rebound showed bulls are still trying to defend the psychologically important $60,000 support level.

How low can Bitcoin go if it breaks below $60,000?

Key takeaways:

• Bitcoin is testing its 200-week SMA near $61,800, a level that has historically acted as major cycle support.
• Analyst says $55,000 may be Bitcoin’s worst-case downside if the 200-week SMA continues to hold.

Bitcoin to $55,000 is the worst-case scenario: Analyst

Bitcoin may print a brief wick below $60,000 before finding stronger demand, according to analyst Radz.

In a Friday post, he said $55,000 could mark the “worst” downside scenario for Bitcoin, citing the 200-week simple moving average (200-day SMA, pink) as the core reason behind his bullish outlook.

BTC/USD weekly chart. Source: BarChart/TradingView

That level has historically acted as one of Bitcoin’s strongest long-term support zones. Previous retests of the 200-week moving average in 2019, 2020, 2022 and 2023 either marked major cycle lows that preceded strong recovery phases.

In February 2026, Bitcoin rose by over 37% after testing the 200-week SMA as support too. This week is BTC’s second attempt this year to hold above the pink line, as it treads around $62,000.

Bitcoin bear flag warns of deeper correction toward $50,000

A maturing bear flag on Bitcoin’s chart suggests the correction may extend well below the $55,000 area.

As of Friday, BTC had broken below the flag’s lower trend line, with rising trading volume showing stronger conviction behind the move. In technical analysis, a bear flag forms when the price consolidates higher inside a narrow channel after a sharp decline, before resuming the prior downtrend.

The measured target is calculated by subtracting the height of the preceding decline from the breakdown point. In Bitcoin’s case, that projects a downside target near the $50,000–$51,000 support zone.

That area also aligns with previous horizontal support, making it the next major level to watch if BTC fails to reclaim the flag’s lower trend line over the next few days.

Bitcoin onchain data points to $50,000–$54,000 target

Bitcoin’s onchain data points to a similar target as the bear flag setup.

Glassnode’s MVRV pricing bands show BTC’s realized price (purple) near $53,740. In simple terms, realized price is the average price at which the Bitcoin supply last moved onchain. In the past, this level acted like a major support level during correction cycles.

BTC MVRV extreme deviation pricing bands. Source: Glassnode

The same chart also shows another key support level (blue) near $50,560, where Bitcoin would look much cheaper based on onchain valuation.

Related: Bitcoin fell 21% after Strategy’s debt buyback news: Is Terra Luna-style doom loop next?

Together, these levels create a support zone between roughly $50,000 and $54,000. That lines up closely with the bear flag target near $50,000 to $51,000.

Bitcoin cup-and-handle breakdown risks drop toward $33,000

Bitcoin’s weekly chart is showing another bearish setup: a possible cup-and-handle breakdown.

The pattern shows BTC forming a rounded top, followed by a smaller rebound attempt inside the handle. Bitcoin price is now weakening near the lower end of that handle, close to the 200-week SMA and the $60,000 support level.

BTC/USD weekly chart. Source: TradingView

If Bitcoin breaks below this area decisively, the downside target from the pattern sits near $33,000.

Some of the largest US banks are reportedly planning to launch a tokenized deposit network in the first half of 2027 in response to growing competition from blockchain companies expanding into traditional finance. 

The network will be operated by The Clearing House, the bank-owned payments operator, and will connect traditional payment rails with digital asset infrastructure for 24/7 settlement, CEO David Watson told The Wall Street Journal.

The Clearing House is co-owned by some of the largest US banks, including JPMorgan Chase, Bank of America, Citibank, Barclays, BNY and Wells Fargo, among others, according to its website.

The plan shows how banks are trying to keep deposits inside regulated banking channels while offering some of the speed and programmability that have made stablecoins attractive for settlement and treasury use.

Cointelegraph reached out to The Clearing House for comment but had not received a response by publication.

US banks have pushed back against US crypto market legislation, which could allow stablecoin issuers to pay users yield on their holdings, similar to interest on traditional bank deposits.

The report comes after JPMorgan CEO Jamie Dimon said that the banking industry would continue to “fight” against the current version of the Digital Asset Market Clarity Act (CLARITY) and said that crypto companies that want to offer yield-bearing products should apply for banking charters, Cointelegraph reported in late May.

The comments followed a May committee vote to advance the CLARITY Act in the Senate Banking Committee, but the bill still needs to pass through both chambers of Congress before going to US President Donald Trump.

The Clearing House, owner banks. Source: TheClearingHouse.org

The plan shows that banking giants are “reacting to where value is already moving,” Carl Grimstad, CEO of digital asset infrastructure provider Lydian, said, adding:

“This announcement shows that 24/7 programmable settlement is becoming increasingly important.”

While banks have experimented with tokenization in controlled environments, public blockchain networks have settled value at a global scale, said Grimstad, adding that the real question is how value will move across an “increasingly fragmented mix of bank ledgers, public chains and digital assets.”

Related: US financial markets ‘poised to move on-chain’ amid DTCC tokenization greenlight 

Wall Street participants accelerate tokenization initiatives

Other Wall Street banks are also accelerating tokenization initiatives.

On March 24, the New York Stock Exchange (NYSE) partnered with tokenization platform Securitize to develop blockchain-based trading infrastructure for Wall Street by enabling the minting of tokenized shares of stocks and exchange-traded funds (ETFs).

Days earlier, on March 18, the US Securities and Exchange Commission (SEC) gave the regulatory green light to Nasdaq’s pilot proposal to support the trading of tokenized versions of high-volume stocks and securities.  

Earlier in January, the NYSE’s parent company, the Intercontinental Exchange (ICE), shared plans for a tokenized securities venue designed for 24/7 trading, instant settlement, stablecoin-based funding and onchain settlement.  

Over in Asia, South Korea’s Ministry of Economy and Finance announced a pilot project that will use tokenized deposits to execute government operational spending, with a full rollout set for the fourth quarter of 2026, Cointelegraph reported on April 16. 

Magazine: Can Robinhood or Kraken’s tokenized stocks ever be truly decentralized? 

Kraken has opened access to the upcoming SpaceX IPO through tokenized shares across more than 110 markets, bringing a traditionally exclusive Wall Street process to retail investors.

According to an announcement from Kraken, SpaceX will become the first company offered through its new xStocks IPO Access program, a service that lets eligible retail investors apply for IPO allocations using tokenized equity instruments rather than traditional brokerage channels.

Users must hold a verified Kraken account through the exchange’s mobile application and submit an IPO access request before shares become available.

Kraken said the service is currently accessible across the European Economic Area and more than 110 international markets, while users in the United States, Canada, Australia, and the United Kingdom remain excluded because of regulatory restrictions.

Investors who receive allocations will be issued SPCXx, a tokenized representation of SpaceX equity backed one-for-one by underlying shares. According to Kraken, those tokens will be tradable around the clock on Kraken and other platforms participating in the xStocks network.

The launch places Kraken in direct competition with a long-standing Wall Street practice in which IPO allocations are typically reserved for institutional investors and wealthy clients.

Earlier this week, Kraken-affiliated Payward Services said customers of Kraken and selected xStocks Alliance members would be able to register interest in upcoming U.S.-listed IPOs before companies begin trading publicly.

According to Payward Services, successful applicants will receive tokenized shares at the IPO offering price on listing day, with the underlying stock held by a regulated custodian. The company said the structure is intended to provide retail investors with access that has historically been difficult to obtain through conventional public offering processes.

SpaceX listing attracts strong demand

Bloomberg reported that SpaceX is expected to begin trading publicly on June 12 and is seeking to raise approximately $75 billion at a valuation exceeding $1.8 trillion. According to Bloomberg, investor demand has already surpassed the number of shares available.

If completed at that scale, Bloomberg said the transaction would become the largest IPO on record, surpassing the $29.4 billion listing completed by Saudi Aramco in 2019.

Much of the company’s valuation has been linked to the growth of Starlink, its satellite internet business. At the same time, SpaceX continues to invest heavily in launch services, spacecraft development, and other capital-intensive operations that could influence how public market investors assess the company after trading begins.

AI infrastructure contracts add another growth driver

Beyond its aerospace operations, SpaceX has expanded into AI infrastructure services through large compute agreements with technology companies.

According to a recent regulatory filing, Google has agreed to pay SpaceX $920 million per month from October 2026 through June 2029 for access to roughly 110,000 NVIDIA GPUs, CPUs, memory, and related equipment.

Google said the arrangement will help meet stronger-than-expected demand for its Gemini Enterprise products while additional internal capacity is developed.

Shortly before that agreement, SpaceX disclosed a separate deal with Anthropic. Under that contract, Anthropic agreed to pay $1.25 billion per month through 2029 for compute capacity from the Colossus 1 data center near Memphis, Tennessee.

The SpaceX offering also arrives as Kraken continues expanding beyond cryptocurrency trading. In late 2025, the exchange acquired xStocks operator Backed Finance and later announced plans to introduce regulated Bitcoin perpetual futures in the United States using infrastructure obtained through its acquisition of Bitnomial.