Crypto World
Grayscale Seeks SEC Approval for Zcash Spot ETF
TLDR
- Grayscale filed a Form S-3 with the SEC to convert its Zcash Trust into a spot ETF.
- The proposed Zcash ETF would trade on NYSE Arca under the ticker ZCSH.
- The fund plans to hold actual ZEC tokens and track the CoinDesk Zcash Price Index.
- Grayscale appointed Coinbase Custody as custodian and prime broker for the proposed ETF.
- Bank of New York Mellon would serve as the administrator for the fund.
Grayscale Investments has filed a Form S-3 with the US Securities and Exchange Commission to convert its Zcash Trust into a spot exchange-traded fund. The proposed product would list on NYSE Arca under the ticker ZCSH. The filing positions the fund as the first US spot ETF tied to a privacy-focused cryptocurrency.
Grayscale Advances Plan for Zcash ETF Conversion
Grayscale seeks to transform its closed-end Zcash Trust into an open-ended ETF structure. The existing trust manages more than $200 million in assets. The firm stated that the ETF would hold actual ZEC tokens.
The proposed Zcash ETF would track the CoinDesk Zcash Price Index. Therefore, the fund would reflect the market price of ZEC. Investors would gain regulated exposure without managing wallets or private keys.
Grayscale appointed Coinbase Custody as custodian and prime broker for the fund. The Bank of New York Mellon would act as administrator. These arrangements outline the operational framework described in the filing.
Closed-end trusts often trade at discounts or premiums to net asset value. However, an ETF allows authorized participants to create and redeem shares. This mechanism keeps the share price aligned with the underlying asset.
Regulatory Context and Market Response to Zcash ETF Proposal
The SEC recently ended a review related to privacy coins. The agency did not announce enforcement actions or issue public warnings. This development forms part of the backdrop to the filing.
Zcash differs from other privacy coins in its design. It allows both transparent and shielded transactions. In contrast, some privacy coins enforce privacy for every transfer.
Zcash uses zk-SNARKs technology to validate transactions. The term stands for zero-knowledge succinct non-interactive arguments of knowledge. This method proves validity without revealing the sender, receiver, or transaction amount.
Following the filing, ZEC traded above $550. Market data showed Bitcoin trading above $80,800 during the same period. Traders linked broader crypto strength to price momentum in altcoins.
The filing states that the SEC may approve or reject the proposal. It also outlines that regulators could impose conditions on the product. The review process will determine whether the Zcash ETF can proceed to listing on NYSE Arca.
Crypto World
Quantum Cyber (QUCY) Stock Surges Following Defense Platform Website Debut
Key Takeaways
- QUCY shares climbed 7.71% following the debut of its defense technology web portal.
- The new platform emphasizes autonomous warfare, counter-drone systems, and EMP technology.
- Quantum Cyber’s website launch refocuses market attention on its AI-powered defense strategy.
- Despite retreating from session highs, QUCY maintained positive momentum throughout trading.
- Company strategically positions its defense portfolio amid expanding autonomous warfare budgets.
Shares of Quantum Cyber N.V.(QUCY) advanced on Friday following the introduction of its defense technology web platform, which brought renewed focus to the company’s strategic initiatives. QUCY closed at $3.2313, marking a 7.71% increase, after reaching higher levels earlier in the session. Despite the pullback from peak levels, the Nasdaq-listed firm maintained solid gains through the close.
Quantum Cyber leveraged its website introduction to showcase its comprehensive defense technology suite to investors and stakeholders. The platform now features detailed information on autonomous drone operations, counter-unmanned aircraft systems, electromagnetic pulse protection, robotic demining solutions, and quantum-based antenna technology. This digital presence provides enhanced visibility into the company’s System-of-Systems defense architecture.
The organization’s strategy centers on consolidating multiple defense technologies within a single publicly traded entity. Its emphasis lies in autonomous operational capabilities spanning aerial, terrestrial, and maritime domains. The website now functions as the primary resource for corporate communications and technical specifications.
The upward movement in QUCY shares coincided with heightened market interest in autonomous military systems and defense technology equities. While the stock experienced significant volatility during the trading session, the sustained gain reflected ongoing investor appetite following the company’s strategic announcement.
Digital Platform Showcases Integrated Defense Solutions
According to Quantum Cyber, the website will serve as a cornerstone for its corporate messaging and shareholder engagement initiatives. The platform delineates its technological capabilities across five distinct defense sectors. Furthermore, it delivers enhanced transparency regarding intellectual property, platform development roadmaps, and communication frameworks.
The company identifies unmanned aerial vehicle systems as a fundamental component of its operational blueprint. Counter-UAS perimeter security represents another significant technological pillar. The portfolio encompasses electromagnetic pulse-resistant drone hardware and automated mine clearance platforms.
Additionally, Quantum Cyber highlights its ongoing development of quantum-enhanced antenna communication systems. The organization anticipates forthcoming disclosures regarding technological advancements, strategic alliances, patent filings, and business development initiatives. Consequently, the website launch establishes a foundation for increased corporate transparency going forward.
Defense Budget Priorities Align With Company Focus
The platform introduction arrives amid a strategic reorientation of U.S. military procurement toward autonomous combat systems. The Trump administration has proposed approximately $55 billion for unmanned and autonomous warfare initiatives in the 2027 fiscal year. This allocation represents a dramatic escalation from the roughly $225 million budgeted in the previous fiscal period.
The counter-unmanned aircraft systems sector provides additional strategic context for Quantum Cyber’s market positioning. According to Grand View Research projections, this market segment is expected to expand from $3.1 billion to $10.6 billion by decade’s end. These estimates reflect a robust 27.2% compound annual growth trajectory.
Quantum Cyber combines combat-proven Israeli defense technologies with access to American capital markets infrastructure. The company’s roadmap includes acquiring, licensing, and advancing autonomous systems tailored for military applications. The web platform launch successfully redirected investor attention toward QUCY’s defense capabilities as shares registered meaningful gains.
Crypto World
Bitcoin Rejected at $80K as Inflation Fears Outweigh CLARITY Act Progress: Weekly Recap
The past week was quite eventful once again, with headlines spanning different sectors: from the highly anticipated meeting between US President Trump and China’s Xi Jinping to inflation data and some progress on the CLARITY Act front.
The business week began on the right foot for bitcoin as it rocketed from under $80,500 to roughly $82,500 following a quiet weekend. However, the rejection was swift, and BTC dipped below its starting point within hours.
Another breakout attempt took place on Tuesday, but the bears stepped up even faster this time, not allowing BTC to surpass $82,000. The selling pressure mounted on Wednesday after the inflation data for April went live in the US. Once it became known that the CPI numbers hit a three-year high of 3.8%, BTC reacted with a price dip to under $79,000.
More volatility ensued on Thursday when the CLARITY Act passed a Senate panel, which was regarded as a bullish development for the crypto industry, as it could crystallize the regulatory landscape in the country. Bitcoin traded at around $79,500 before the news spread, but quickly exploded to $82,000.
The bears reemerged at this point once again and didn’t allow any further gains. Although BTC managed to remain close to the $82,000 level for a while, it nosedived on Friday by over three grand from the top and currently struggles below $79,000.
Its market capitalization has fallen to $1.580 trillion on CG, while its dominance over the alts remains well above 58%. Nevertheless, BTC remains slightly in the green on a weekly scale, but it has been outperformed by many altcoins, including BNB, DOGE, XRP, and SUI.
Market Data

Market Cap: $2.71T | 24H Vol: $118B | BTC Dominance: 58.2%
BTC: $78,800 (+0.6%) | ETH: $2,210 (-1.38%) | XRP: $1.43 (+5%)
This Week’s Crypto Headlines You Can’t Miss
Bitcoin’s Drop Below $80K Was Not Random: Here Are the 3 Hidden Triggers. The largest cryptocurrency slipped below $80,000 on a couple of occasions in the past week, and many analysts believe it’s not random. Easy On Chain, for example, outlined three reasons behind the asset’s decline.
Is Bitcoin’s Rally Fake? Analyst Sees Massive Downside Ahead. Another popular market observer, Dr. Profit, who has mostly leaned bearish over the past half a year, noted that the rally to over $82,000 was most likely unsustainable and predicted a substantial crash to and perhaps below $50,000.
Arthur Hayes Predicts AI Race Will Push Bitcoin Back to $126K. On the contrary, Arthur Hayes remains bullish on BTC’s long-term perspective, forecasting a massive surge to the October 2025 all-time high of $126,000. Interestingly, he thinks such a move could be propelled by the AI race.
Bitcoin and Ethereum Arrive on Wall Street Giant Charles Schwab for Selected Retail Clients. Schwab Crypto, the behemoth investment services firm’s new digital asset venture, officially launched last week, allowing certain retail investors to get exposure to BTC and ETH through the regulated platform.
Strategy’s Bitcoin Buying Spree Resumes With Fresh 535 BTC Accumulation. After a quick weekly pause, Michael Saylor’s Strategy resumed its BTC purchases. The latest was a relatively small one of 535 BTC, acquired for $43 million. Its total stash grew to 818,869 BTC.
Tom Lee Doubles Down on ‘Crypto Spring’ Theory, but Bitmine Slows ETH Accumulation. BitMine also slowed its pace of ETH purchases, but Tom Lee remains optimistic that the worst has already passed and ‘crypto spring’ is about to commence.
Charts
This week, we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Hyperliquid – click here for the complete price analysis.
The post Bitcoin Rejected at $80K as Inflation Fears Outweigh CLARITY Act Progress: Weekly Recap appeared first on CryptoPotato.
Crypto World
RedStone’s settlement layer is the first serious attempt to make tokenized RWAs real DeFi collateral
RedStone’s new “Settle” layer is the first sober attempt to fix DeFi’s RWA paradox.
Summary
- RedStone Settle liquidates RWA‑backed loans via on‑chain auctions, letting LPs buy the position and assume slow 60–180 day redemption risk, so lending protocols keep atomic, instant liquidations.
- With around $30B of tokenized Treasuries, credit and funds sitting as “dead capital,” Settle standardizes liquidation and repricing so RWAs can back Aave‑style markets instead of being trapped in isolated wrappers.
- The trade‑off is structural: if Settle becomes the default, RedStone’s oracle and auction stack starts to look like a quasi‑central clearinghouse for RWA collateral inside an allegedly permissionless ecosystem.
RedStone has launched “RedStone Settle,” a dedicated DeFi settlement layer built to make tokenized real‑world assets usable as collateral in lending protocols, targeting roughly $30 billion of RWAs that are currently structurally dead capital. The design attack is straightforward: fix the core timing mismatch between instant, on‑chain liquidations and 60–180 day off‑chain redemption cycles for bonds, funds, credit and other tokenized instruments that have, until now, been almost impossible to use in live DeFi lending.
RedStone settlement layer adds functionality
RedStone, a decentralized oracle provider based in Baar, Switzerland, says Settle introduces an on‑chain auction mechanism that activates when a borrower using RWA collateral is liquidated. Instead of trying to redeem the underlying real‑world asset instantly — which is structurally impossible for most tokenized bonds or funds — the system lets liquidity providers bid for the liquidated position, buy it on chain, and then assume the delayed redemption risk of the underlying, which can take 60–180 days to unwind. In effect, Settle turns those LPs into specialized risk‑bearers who bridge slow TradFi settlement and fast DeFi risk management, while letting lending protocols keep their instant‑liquidation discipline.
The scale of the prize is non‑trivial. RedStone cites estimates from RWA.xyz and other trackers that put the current market for tokenized RWAs — led by tokenized US Treasuries, private credit vehicles and fund wrappers — at around $30 billion as of April 2026, most of it sitting in isolated contracts, earning yield but functionally unusable as collateral in Aave‑style money markets. By standardizing how those assets are liquidated and repriced across protocols, RedStone argues Settle can “unlock over $30 billion worth of tokenized assets currently sitting idle,” removing what it calls “a significant barrier to integrating RWAs into DeFi.” Intellectia’s summary is blunt: this gives institutional holders “a transparent pathway to leverage their income‑generating assets for loans without selling them,” shifting DeFi yields toward corporate, real‑estate and sovereign risk premia instead of pure crypto beta.
Conceptually, this is the invisible plumbing that actually matters for RWA‑DeFi integration, as opposed to the endless “tokenized T‑bills” narratives that never quite become money‑like. Today, most tokenized assets face a structural veto: protocols need atomic liquidations; real‑world settlement is slow, litigious and path‑dependent; so the obvious choice has been to keep RWAs at arm’s length. RedStone Settle creates an explicit risk‑transfer market around that mismatch: if you want the yield and diversification from RWAs, you price and outsource the time risk to LPs through auctions, instead of pretending it doesn’t exist. In a best‑case scenario, that pushes stablecoin and lending rates to track the term structure of credit and macro cycles, not just the mood swings of BTC and ETH.
The catch is structural. If RedStone’s private oracle plus settlement layer becomes the de facto standard for how DeFi handles RWA collateral, you’ve effectively recreated a quasi‑central clearinghouse — a DTCC‑style coordination layer — inside an ecosystem that insists on being permissionless and credibly neutral. Price feeds, auction design and dispute resolution all route through one oracle stack and its governance, even if the contracts are on chain. That’s the real wedge: one approach, like State Street’s Luxembourg build‑out, plugs tokenization into TradFi’s legal superstructure; the other, like RedStone Settle, builds a parallel “central bank of RWAs” for DeFi. Either way, the fantasy of purely flat, trustless collateral markets dies as soon as $30 billion of real‑world assets show up and someone has to decide what happens when the redemption clock and the liquidation engine collide.
Crypto World
Solana (SOL) at a Turning Point: What Will Define the Next Breakout?
Over the past month, Solana (SOL) spiked 10%, yet it remains below the psychological $100 milestone.
One popular crypto analyst is optimistic that the price may surge well above that level, but such a breakout would require the overcoming of a key resistance zone.
The Necessary Conditions
As of press time, SOL trades at around $91, while its market capitalization stands just below $53 billion. According to Ali Martinez, the price has been moving within a well-defined channel since February, identifying the upper boundary at $98 and the lower at $78. He forecasted a potential bounce if SOL makes a successful breakout above the ceiling and set $88 as “the pivot point.”
“We recently tested that $98 resistance, which resulted in a quick rejection. Now, I am seeing Solana bounce. This suggests we could be gearing up for another retest of the channel top to determine if a breakout is finally in the cards,” he stated.
Martinez believes that a daily close above $98 could open the door to a surge toward $107, with a secondary target at $117. At the same time, if that level continues to hold as heavy resistance, the price may retreat to $88 and even to the $78 floor.
Earlier this month, the analyst revisited Solana, describing the $77-$94 range as a “no-trade” zone. Back then, he suggested that if buying pressure picked up, the price could surge toward $96.
Prior to that, Martinez noted that SOL’s Bollinger Bands have squeezed, which has historically been a precursor of a major breakout. However, the direction of the move (up or down) can not be determined.
Another X user who recently gave their two cents on the matter is Globe of Crypto. In their view, closing above $99 could set the stage for a solid rise toward $160-$170.
The Bold Forecast
X user Marino also chipped in, predicting that SOL could climb above $500 in the coming years. He supported his bullish outlook by pointing to Solana’s accelerating adoption, rising usage, growing network value, increased staking, the launch of new apps, and other positive factors that reinforce the ecosystem’s strength.
The analyst added that inflows into spot SOL ETFs could also spark a rally, and data show that lately these products have indeed attracted millions of dollars of fresh capital. Since their introduction, the financial vehicles have generated a cumulative total net inflow of approximately $1.12 billion.

“If Solana keeps compounding adoption at this pace into the next cycle & if macro conditions are positive. Then $500+ in 2029 feels absolutely possible,” Marino concluded.
The post Solana (SOL) at a Turning Point: What Will Define the Next Breakout? appeared first on CryptoPotato.
Crypto World
The best crypto to buy now in May
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Poly Truth and Meme Punch stand out among below-$1 crypto picks alongside Sei in 2026 market watchlist.
Summary
- Crypto markets are targeting sub-$1 tokens again, with Poly Truth, Meme Punch, and Sei gaining attention.
- Poly Truth is an AI prediction market tool that turns event data into probability-based reports using a 3-part system.
- Meme Punch is a play-to-earn meme game where players earn MEPU through PvP battles and in-game progression.
A lot of coins sit well under $1, but only some have the setup to actually move toward it. The next crypto to hit $1 will probably come from a project that has more going for it than a low price tag.
This article looks at three picks worth a closer look right now. Poly Truth (PTRUE) and Meme Punch (MEPU) are still in presale, and Sei (SEI) is already listed and building momentum. Different stages, different stories, but all three are worth knowing.
Next crypto to hit $1: 3 Picks to watch
Three projects worth a closer look for those who are scanning for the next sub-$1 token with real upside.
1. Poly Truth (PTRUE)
Poly Truth is a prediction market intelligence tool. Not a trading platform, not a bot. The concept is that users receive AI-powered analysis that indicates which outcome the data actually supports and why, rather than speculating on prediction events.
The team constructed the platform’s three-part system around three characters. The Runners are AI bots that search the internet for information on current prediction events. The AI analyst known as the Starlet calculates probability scores, looks for patterns, and cross-references the sources. The Presenter delivers the final report in plain language.
A few things worth noting:
- 11.5 billion tokens are available, and it is based on Ethereum.
- Ten percent of the supply is reserved for staking rewards, and forty percent is allotted to the presale.
- Audited by Coinsult and SolidProof; both reports are available to the public.
- Team tokens have a 3-month cliff and a 12-month vest.
- ETH, BNB, SOL, USDT, USDC, card, and SEPA are among the available payment methods.
2. Meme Punch (MEPU)
The play-to-earn cryptocurrency game Meme Punch is based on a simple idea. Play and get real cryptocurrency after winning, as opposed to holding a memecoin and waiting for a pump.
Five iconic meme-inspired characters — Pepe, Doge, Floki, Brett, and Pudgy Penguin — compete for supremacy in this medieval battle arena. Choose a knight, engage in PvP combat, move up the leaderboard, and receive in-game rewards in the form of MEPU. The token has actual use outside of speculation since it can be used within the game to access weapons, skins, and special abilities.
Features worth knowing:
- Built on Ethereum, with a total supply of 10 billion MEPU.
- 40% of supply goes to the presale, with 14.5% for staking and 9.5% for in-game rewards.
- Marketing allocation sits at 16.5%, aimed at reaching gamers outside the crypto bubble.
- Payment options cover ETH, BNB, SOL, USDT, USDC, and card.
3. Sei (SEI)
Sei is a high-speed Layer 1 blockchain built around fast trading, gaming, and other apps that need performance. After months of sideways action, it’s one of the better stories on exchanges right now.
The price action tells the recovery story clearly. SEI was sitting near $0.054 in mid-April, broke above the descending channel in early May, hit a peak of around $0.078 on May 10, and now trades near $0.067. That’s a 24% move off the April low, with the chart showing higher lows building.
A few catalysts are behind it:
- The Giga upgrade is rolling out through 2026, targeting over 200,000 transactions per second with sub-400ms finality.
- EVM migration is set to complete by June 15, 2026, opening the door to Ethereum developers and apps.
- Xiaomi partnership has SEI’s wallet preinstalled on devices outside China and the US, exposing the chain to a massive global user base.
Why these picks are worth watching
Each of the three picks holds its position for a different reason, but they all have one thing in common. Price alone won’t be enough for the next cryptocurrency to reach $1. It will require a strong reason for consumers to continue purchasing.
In order to provide prediction market traders with a real advantage, Poly Truth is developing an AI research tool. A memecoin can be transformed into a playable game with in-game features with Meme Punch. Real adoption is being pushed by Sei through the Giga upgrade, an EVM migration, and a partnership with Xiaomi.
The point is the combination of stages. The smaller entry and larger upside, should they land, are offered by the presales. SEI provides a project that is already demonstrating ecosystem progress and recovery. It’s important to be aware of the various bets and timelines.
Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.
Crypto World
$1.75 Trillion SpaceX IPO Hardwires Elon Musk As Single-Point Founder Risk
SpaceX’s IPO prospectus does something rare. It strips public investors of the right to remove the chief executive. The same filing warns that his departure could be existential.
The contradiction is structural, not accidental. The S-1 asks markets to fund a single founder. It also asks them to accept a pay package whose triggers exist only in projection.
The SpaceX IPO Hardwires Single-Point Failure
Musk holds about 42.5% of SpaceX equity but 83.8% of voting power through Class B super-voting shares. The S-1 states removal from his roles requires a Class B vote. He controls those votes outright.
Harvard Law professor Lucian Bebchuk called the arrangement “not common.” Boards typically retain formal removal authority. The structure collapses that authority into Musk’s voting bloc, leaving a self-veto in its place.
The filings flag Musk’s loss as a multi-page risk factor. They cite his overlapping commitments at Tesla, xAI, X, Neuralink, and The Boring Company.
No structured succession framework appears, and no deputy is positioned to take over.
Corporate Feudalism Returns to Public Markets
Texas incorporation, mandatory arbitration, and a controlled-company exemption sit alongside a 3% or $1 million floor on shareholder proposals. The filing itself states public shareholders’ influence will be limited or eliminated.
Pension fund officials have already pushed back. CalPERS, the New York State Comptroller, and the New York City Comptroller signed a joint letter.
They call the Musk-led structure a departure from accepted public-company standards.
SpaceX argues the structure protects long-horizon goals from short-term shareholder pressure.
That defense does not address removal mechanics. Founder lockups at Meta and Alphabet look modest by comparison.
A $7.5 Trillion Mars Milestone Is Not a Valuation
The main pay tranche awards Musk up to 200 million Class B shares. It vests only if SpaceX reaches a $7.5 trillion market capitalization. The same trigger requires a permanent Mars colony of at least one million residents.
The $7.5 trillion threshold sits above the combined market value of Apple, Microsoft, and Saudi Aramco. The Mars criterion has no precedent, no infrastructure to project against, and no off-world regulatory framework.
Neither benchmark fits standard valuation methods.
A second tranche grants up to 60.4 million shares for orbital data centers with 100 terawatts of compute. The award mirrors xAI’s terrestrial AI race. The S-1 admits such operations may not be commercially viable.
That is the price of single-point governance combined with speculative pay design. Investors are asked to fund a company they cannot influence and price milestones no model can value.
The only person who could fail the mission is the one allowed to define it.
The post $1.75 Trillion SpaceX IPO Hardwires Elon Musk As Single-Point Founder Risk appeared first on BeInCrypto.
Crypto World
Arkham Intelligence Reports 90%+ Token Concentration in $LAB Project Trading at $4B Market Cap

Blockchain intelligence firm Arkham flags extreme insider ownership concentration in $LAB, which has surged 3000% in three months.
Crypto World
Kraken Parent Payward Makes Deep Cuts as IPO Pressure Mounts
Payward, the parent of cryptocurrency exchange Kraken, is cutting 150 jobs ahead of its planned U.S. stock-market listing. The reduction affects about 5% of its 3,000-person global workforce.
The move forms part of a broader optimization push aimed at improving margins. Management wants a leaner financial profile before going public.
Layoffs Continue a Multi-Year Lean-Out
The latest cuts extend a sustained workforce reduction that began in October 2024. Payward eliminated about 400 roles then, or roughly 15% of staff.
The reduction followed shortly after Arjun Sethi joined David Ripley as co-CEO. Further cuts then followed in early 2025 as the company merged overlapping teams.
A Payward spokesperson declined to address specific personnel decisions. The company continually evaluates its structure to align talent with strategic priorities.
Meanwhile, hiring continues in select growth areas, including derivatives, payments, and tokenized assets.
Workforce optimization has become a common pre-IPO playbook for crypto firms. Therefore, trimming costs strengthens key profitability metrics that public investors scrutinize.
IPO Plans Remain on Hold
Payward filed a confidential S-1 registration statement with the SEC in November 2025. The filing targets a public valuation near $20 billion.
However, the firm paused its listing timeline in March 2026. Weaker performance among recent crypto listings had cooled investor appetite.
Co-CEO Arjun Sethi has publicly stated the company is roughly 80% ready to go public. His comments signal the S-1 remains active despite the delay.
Meanwhile, Payward continues to expand through acquisitions, including NinjaTrader for derivatives and Reap Technologies for stablecoin payments.
Payward closed an $800 million funding round at the time of the SEC filing. The round established the $20 billion valuation now informing IPO discussions.
The financing followed a wave of secondary investments from traditional finance partners.
Whether Payward returns to the IPO queue this year may hinge on how the next wave of crypto listings performs.
The post Kraken Parent Payward Makes Deep Cuts as IPO Pressure Mounts appeared first on BeInCrypto.
Crypto World
CME, ICE push U.S. regulators to scrutinize Hyperliquid over manipulation risks

CME Group and ICE have reportedly warned the CFTC and Capitol Hill officials that Hyperliquid’s decentralized perpetual futures platform could enable market manipulation and sanctions evasion.
Crypto World
Augustus CEO Says Banks Can’t Be Rebuilt for AI as OCC Backs Stablecoin Bank
Augustus Bank’s CEO, Ferdinand Dabitz, says legacy clearing banks cannot truly rebuild their cores for artificial intelligence and programmable money, as his startup moves closer to launching a US national bank designed around both.
The Office of the Comptroller of the Currency (OCC) granted conditional approval for Augustus Bank N.A. on Monday under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which created a federal framework for payment stablecoins and clarified how banks and certain nonbank entities can issue and integrate dollar-pegged tokens under federal oversight.
Augustus now plans to establish a full-service national bank in Dallas, Texas, focused on fully reserved stablecoins, AI-driven compliance and automation-heavy back-office processes. Dabitz told Cointelegraph it was just “a couple of months” from full approval and launch. However, final approval remains subject to pre-opening conditions.
The company is targeting the “broken” correspondent clearing business dominated by global banks such as Citi, arguing that incumbents cannot fully re-platform systems built for humans, not machines, that still close on weekends and rely on decades-old cores.
“The short answer is replacing them,” Dabitz said when asked whether Augustus could coexist alongside traditional clearing banks.
Augustus bets stablecoins and AI can remake clearing
Augustus began life in Berlin in 2021 as Ivy, a euro-clearing fintech that built a transaction banking platform for non-US financial institutions, fintechs and crypto firms.

Augustus received conditional OCC approval this week. Source: PR Newswire
The bank already runs euro payments and instant settlement for clients, including crypto exchange Kraken. “The clearing bank bond is truly broken,” he said, arguing there’s an opportunity to “rethink it as an application and deliver something pretty terrific.”
Related: JPMorgan to launch tokenized money market fund for stablecoin issuers
Central to Dabitz’s pitch is the belief that large banks can upgrade legacy infrastructure but cannot fundamentally rebuild around AI and tokenized money. “I’ve come to the conclusion it’s impossible to re-platform a bank,” he said.
Augustus plans a three-layer stablecoin model: using stablecoins as a funding rail for payments, as a treasury and liquidity tool to release what Dabitz estimates is around $3 trillion in trapped idle capital, and as the interface layer for AI agents interacting directly with money.
He said the model could enable real-time treasury optimization and allow AI systems to become “first-class customers” of the bank, handling tasks such as liquidity management and transaction monitoring on behalf of corporates.
Competition from banking giants
Dabitz’s argument comes as major banks accelerate their own AI and digital asset initiatives.
JPMorgan Chase says it invests more than $18 billion annually in technology, including AI, and Citi reported over $6.1 billion in clearing-related revenue in Q1 alone, highlighting the scale of the incumbent profit pool Augustus is targeting.
Dabitz argues his team can still move faster because it is designing AI and stablecoin workflows into its operating model from the outset rather than retrofitting existing systems.
Related: Argentine banks testing JPMorgan’s JPM Coin to speed up settlements: Report
He also described the US banking market as structurally under-innovated, noting that banking is unusually labor-heavy compared with other major industries, with people rather than assets forming a major part of operating costs.
Pushing AI deeper into banking operations
Augustus wants to compress processes such as transaction monitoring, case handling and suspicious activity reporting from “20 hours to 20 minutes” using AI, with humans supervising the systems rather than manually performing every step.
Critics question whether a young, AI-focused bank with a 25-year-old leader at its helm can safely automate compliance-heavy operations without introducing model risk, explainability problems or operational failures.
Dabitz said that only makes the challenge “more exciting” and that the company plans to work closely with regulators and banking executives to ensure “the checks and balances and the harness for the AI to operate in a safe and sound manner.”
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