Crypto Weekly: Technology Advances, Market Awaits Further Acceleration

Markets Shrug Off Trump's Tariff Threats

Donald Trump's threats of new tariffs on European and Asian imports barely moved the crypto market. Both Bitcoin and Ethereum held their ground, and investors appear largely immune to such political rhetoric. However, early July could bring new challenges if tariffs actually take effect.

XRP on a Tear

XRP surged over 12% during the week, leaving the rest of the crypto market behind. Three key factors drove the rally: news of institutional adoption, positive legal signals, and technical strengthening. XRP continues to demonstrate that narrative + liquidity = volatility, and sometimes returns.

Crypto Included in Mortgage Risk Assessments

In the United States, mortgage lenders Fannie Mae and Freddie Mac have been directed to consider crypto investments as part of borrowers' assets. While owning Bitcoin won't automatically improve loan terms, this represents a significant step in establishing crypto's position within the financial system.

Solana-Based Stablecoin for Real-Time Transfers

Payments giant Fiserv and blockchain infrastructure specialist Tassat are launching a Solana-based stablecoin for real-time interbank transfers. The goal is to replace slow and expensive SWIFT transfers with a programmable and fast alternative. This move signals the maturity and direction of stablecoin infrastructure.

Zama: Privacy's New Unicorn

Paris-based Zama raised $57 million in funding and achieved unicorn status ($1 billion valuation). The company develops fully homomorphic encryption (FHE), enabling data processing without decryption. This could open doors to encrypted smart contracts and private DeFi applications. VCs are now shifting from tokens toward Web3 privacy infrastructure.

Janus Henderson Tokenizes $1 Billion CLO

Traditional asset manager Janus Henderson has moved $1 billion worth of collateralized loan obligations (CLOs) onto the Provenance blockchain. CLOs are complex financial instruments partly blamed for the 2008 crisis. Now they're seeking a more transparent and efficient form through blockchain infrastructure.

Macro Overview: Risk Premium Vanishes, Liquidity Grows

Stock markets rose to new records as geopolitical tensions eased. The Israel-Iran ceasefire and US-China trade negotiations calmed investors. The S&P 500 rose 3.4% and Nasdaq 4.25%.

The US economy continues to slow without collapsing, and inflation remains modest. Fed rate cuts are expected for the fall, and an easing interest rate environment supports risk assets. Meanwhile, gold fell 3%, and the BTC/gold ratio is rising. If gold falls below $3,000, Bitcoin could be expected to rise to as high as $125,000.

Dollar weakness (lowest since February 2022) signals easing global financial conditions. Trump's comments on continuing short-term debt hint at increased liquidity at the political level as well. Capital flows may see clear rotation into stocks and crypto.

Crypto Companies on the Move

Kraken received a MiCA license from the Central Bank of Ireland and can now offer services in 30 European countries. Coinbase announced perpetual-style derivatives products for Bitcoin and Ether launching in July in the United States. These products offer US traders an alternative to offshore exchanges.

Bit Digital raised $150 million to pivot away from Bitcoin mining toward Ethereum staking and treasury. The company plans to convert its entire Bitcoin holdings to Ether.

Bakkt announced the possibility of selling up to $1 billion in securities to expand its treasury and potentially acquire Bitcoin for its corporate treasury. Robinhood, meanwhile, added micro-derivatives for XRP and Solana.

Regulation and Government Activity

Hong Kong released "Policy Statement 2.0" on digital asset development. The vision is a risk-managed but innovative ecosystem. Arizona is advancing on crypto reserves: a new law would allow the state fund to invest in criminally seized crypto assets. The FHFA director in the US announced that Fannie Mae and Freddie Mac will consider crypto assets as part of mortgage risk assessments.

The coming week may bring more market movement as the quarter ends and liquidity returns. July is expected to be busy in terms of policy and macro. Stay tuned.