Kraken wants to bring Liquid to US, Ripple is an official bank, and prediction markets in the NBA

Hyperliquid has plans to enter the United States. Ripple becomes a bank. BlackRock has plans for the Yen. Binance has plans in Brazil. We have a lot to talk about today on the Daily Wolf. Let's go.

What is up everybody? Welcome to the Daily Wolf on Yahoo Finance. I am your host Scott Melker, also known as the Wolf of all streets. You know

there's actually quite a bit of news today. I think it's interesting that we now take for granted the massive news stories that we seem to get on a regular basis that would have once absolutely rocked the market to the upside, right? I mean, if you would had news about crypto companies becoming banks or on-chain derivatives exchanges coming to the United States. Those would have moved Bitcoin 10, 20, 30%. But now we get five of those stories every single day as Bitcoin and

crypto become part of the mainstream uh conversation and as they become adopted by every financial institution on the planet. The first story though we have today is that Hyper with Liquid has chosen a dancing partner in the United States and it is Kraken. Everybody wants a piece of those sweet perpetual swaps on chain that Hyperliquid has been pushing all over the planet. Well, here it is, Kraken's parent

Payward, of course, every headline now seems to start with Kraken's parent parent Payward. I made that joke to Arjun their CEO recently. Kraken's parent plans regulated US perpetual futures on Hyperliquid. So on October 26th, which is yesterday, Hyperliquid said that Kraken is its intended first CFTC regulated HIP-3 deployer. That is a mouthful. Basically, what that means is that this would serve eligible clients in the United States to be able to

to use Hyperliquid. Now you'll remember there was that crazy White House meeting recently where Donald Trump got up and was giving a speech and talking about people's backsides. No, different speech.

Uh but that seems to be all he talks about now. Uh but where Donald Trump got up and said, and we're going to bring hyperliquid onshore. People were like, did Donald Trump just say hyperliquid? Like what's going on here? He's talking about Mike Selig and the CFTC. Well, that is in the process of happening. This is not yet uh of course, uh happening, it still needs regulatory approval to do it, but this will happen in a partnership between Hyperliquid and Kraken. This is not Hyperliquid saying that it'll never work with anyone else on this standard in the future, but right now Kraken, Kraken, as I said, is the preferred and initial

dancing partner. Now, these contracts have become wildly popular all over the world, right? Hyperliquid exploded uh on chain for actual crypto trading, but then when silver and gold went crazy and of course, of course oil futures and then pre IPO SpaceX. Hyperliquid became the preferred place even for a lot of institutions to trade, but also to find out what was happening on the weekend, 24/7 365 at night with price discovery and still has become that venue. The

size of the trade there, the volume is absolutely massive and this product needs to be on short into the United States. Seems like that is going to happen. We know that the US hates fun that we obviously uh tend to get things a lot later than the rest of the world, especially when it comes to crypto and crypto innovation. Well, this is one of those great stories where it seems like we may be catching up. I'm going to be tracking this one very, very closely, but you all may be trading pre anthropic, uh pre-IPO anthropic perpetual swaps

in the United States uh by the time they have their IPO. Good stuff there. Kraken here is pursuing

regulated access to on-chain derivatives. Ripple just secured final approval for another piece of crypto's financial infrastructure. Here's the story. Ripple gets final federal approval for a trust bank to manage its stablecoin reserves. When the SEC was suing Ripple, uh a couple years ago, you probably didn't have in your mind a headline where Ripple was going to become a bank. Now, to be fair, the people who have supported and championed Ripple for years did tell you that this was going to happen.

They also seem to still believe that XRP for some reason is going to be the key token that is a part of this. That part I can't get to, but I am very happy for all of them that their dreams are coming true and that Ripple is becoming a bank. So they announced uh final OCC approval for Ripple National Trust Bank yesterday. That conditional approval, of course, was granted back in December of 2025, but now it is official. The approved activities here include managing the segregated reserves supporting RLUSD. So RLUSD is Ripple's native

stablecoin. This gives them the ability, as we've talked about with other trust bank approvals in the past to manage the reserves and everything surrounding their own stablecoin. They do not need a third party to manage their stablecoin, which is big news for them. Now, I think there's only approximately 2.5 billion of RLUSD in circulating supply. It is one of the smaller stable coins, but that could grow massively and as it does, obviously, they will be their own custodian and will manage their own reserves. I think that's really important and interestingly that remains regulated by New York's Department of financial services, which is probably the most difficult regulator

in the United States. Now, once again, these are not full banking charters. They do not authorize ordinary deposit taking or commercial lending, yield, loans, all the things that you're used to with a bank. This is a very narrow charter specifically for being able to custody and manage stable coin reserves. Regardless, a big story for Ripple, great news for them. They got a bank charter,

but obviously they're not gonna be handling like your mortgage application, right? They're building the regulated structure here behind digital dollars, but in the next story, BlackRock is exploring how investment funds could connect to digital Yen. Here it is right here. BlackRock, SBI Holdings and Startale sign landmark MOU to bridge tokenized money market funds and Yen stable coin. JPYSC.

Everyone's favorite Yen stable coin. I I mean, I use it every day from my yen activities. Um when I want to buy something in game on my Nintendo. I use JPYSC. Did you know there's a Sony bank, like Sony and they have their own stable. Japan's crazy, man. So what's happening here is Black BlackRock is exploring the connection between digital cash and investments in Japan. The opportunity basically is making tokenization useful beyond just trading tokens, but this is an agreement to explore not a launched

product. So this is once again, it's an MOU. This is not official yet. This is basically a test. So they're using this Yen denominated trust stablecoin to connect to other tokenized assets like tokenized bank deposits and of course in the future tokenized equities and such. So we have not heard much about stablecoins outside of those backed by uh the United States dollar. We've seen people testing with them, but this is an actual viable, already existing Japan, Yen stable coin and BlackRock wants to see how it will work with the rest of the tokenized financial system.

To me, this is not necessarily a huge story. It's just another example of United States institutions, the biggest on the planet BlackRock, going out there and finding new and novel ways to use blockchain technology and testing things. And as it becomes the underlying infrastructure for the entire financial system, that's going to become much more important. Once again, there was a time when you'd be like, BlackRock, stable coins, everything goes up 10%.

Uh, now, obviously a story like this is effectively a rounding error. But we don't just have a story in Japan. We have a story in everybody else's uh favorite country, which is obviously Brazil. Binance files for Brazil crypto licenses ahead of October 30th deadline. Should have made it October 35th, 31st, so it could be Halloween. October 30th is arbitrary and ridiculous. That's stupid. Finance says it filed a Brazilian virtual asset service provider application on October 23rd.

Who didn't? Uh, so yeah, again, that deadline is the 30th. And so what this basically means, Binance has already been operating in Brazil, but this is Binance becoming compliant with new regulations that are going into effect in Brazil, which means delisting basically 22 tokens.

Affected tokens include USDE, USDC, Mantra, GMT, ZIL and STORJ. Dude, it's like, that's like a hot tub time machine back to relevant tokens from the past. GMT. Is that Steppin? Zilliqa, Storj?

Cryptos are dumb. Yeah, we're literally back in 2021. It's pretty awesome. Eight products face restrictions on opening new positions. Those products include loans, margin, launch pool and cloud margin. So Brazilian customers payment accounts are scheduled to migrate to its local brokerage by October 29th. Binance in Brazil, you know, big, big news there. It's going to become compliant. But the story there, if you want the signal out of the noise, obviously, is the fact that once again,

all of these institutions are getting regulatory and legislative clarity all over the world and we're going through in real time the process of seeing what that looks like. But in the United States, prediction markets just added something very important and that is an official NBA partnership, or is it?

NBA partners with Kalshi and Polymarket amid regulation fight. So they're the preferred prediction market exchanges, Kalshi and Polymarket and also DraftKings got their license updated so they can do prediction markets on the NBA. So basically this is like if you go into your favorite NBA uh arena, say you're going to Madison Square Garden and they're like, we have a preferred partner but then it's like McDonald's, Wendy's and Burger King are all lined up in a row and you can get burgers in any of the three, right? The NBA is not picking favorites here. They are basically finding new and novel ways to make sure that they get their piece of prediction markets moving forward. But I guess the bigger story is the one in that headline, which is that they're doing this even though there's no regulatory clarity right now on what prediction markets are, what prediction markets

can and cannot do. Seemingly, unafraid to move forward here uh with their prediction market plans. So yes, Kalshi and Polymarket are obviously very direct competitors and both becoming preferred partners is very, very, very interesting. But they will both receive NBA intellectual property and marketing rights, which will likely be huge for the both of those platforms. Now, moving on from a place that has amazing sports, which is the United States, to a place that has terrible sports, let's talk about Canada. Canada opens consultation on draft stable coin rules, maintains ban on yield. That was unfair.

They're pretty good at hockey and that stupid thing with the brooms. Curling. Curling. Sounds like what happens to your milk when it goes bad. That sport. Curdling. Uh, Canada opened consultation on draft stable coin rules, maintains ban on yields. Now, I read this and I went, this sounds a lot like the Genius Act. And it's almost exactly like the Genius Act, right? The proposal prohibits issuers from paying yield on held balances directly or through third party

arrangements. Transaction-based rewards remain permitted, which is like, you know, USDC can't offer yield circle, but then Coinbase can offer transaction based rewards, aka yield with a different name. They basically just copied the Genius Act and it's now news. And how very Canadian of them.

What's the US doing down there? Oh, that looks sweet, eh? I think they actually put the word hoser in there. Called someone a hoser. I don't know if you guys saw that piece of the news. But yes, Canada Hey, I'm unhinged today. It's a good time. I love this show, to be honest. Uh, I thought that when I got on Yahoo Finance, there'd be like rules and restrictions and then I just uh started ranting like a lunatic every single day and have no idea what I'm going to say at any given time. In fact, I didn't know that I would just spend 30 seconds telling you that I didn't know what I would say.

as a perfect example. So yeah, Canada uh following the United States. Uh to be fair, a lot of regulators and legislators and countries all over the world look to see what the United States government is doing with financial markets before they make their own decisions and that is what is happening here. And we have one final story today and man, is it important? It's fine. Honestly. Zcash co-founder proposes ending grant subsidy, citing 125 million treasury.

Bo proposes redirecting the 8% block subsidy to the network sustainability mechanism while leaving ZCG's reserves intact. Do any of you know what any of that means? No. So basically what happens is that uh there's this massive grant subsidy that goes to Zcash developers that comes out of every block reward. I believe it's 8% but they have a war chest now of 100

and $25 million already and people are like, what do they need $125 million for? They don't. So he's making a very, very wise proposal here to stop doing that. Uh I just have no idea where that money is going now. What is the network sustainability mechanism and how can I get a piece of that sweet, sweet mechanism? I would like to subsidize your network with money from you to me.

I don't know if that can be arranged. Oh my gosh, guys. What a show. I don't know how everybody doesn't watch this every day. It's so entertaining and so informative. Uh, but yeah, we're going to see what happens over the rest of the week with all these stories, but it seems like the news is pouring in right now as we prepare for the next Bitcoin bull market. That's all I've got for you today.

See you tomorrow. Deuces.