Welcome back!

Here’s what I’ve got for you this week:

At this point valuations are pure vibes. Fugazi. Fairy dust.

Now, let’s jump right into this week’s newsletter! 

Click on any underlined heading/hyperlink to learn more.

Front Running

On Monday, Anthropic filed to go public. 

And as is customary, the prospectus said everything except what everyone wanted to know: the price. But within minutes, traders on the other side of the world had filled it in.

They did so on Hyperliquid, where pre-IPO perpetual futures contracts let anyone trade on what a private company will be worth once it lists. These contracts never expire, and no shares change hands. They simply track the crowd’s collective trade and, on listing day, lock onto the real share price on Nasdaq, where Anthropic will trade.

So far, Hyperliquid’s punters have been remarkably good at this. When Cerebras floated, its pre-IPO perpetual futures all but called the opening trade. SpaceX was messier. Its pre-IPO perpetual futures ran hot, yet the bankers’ offer price strayed even further from where the shares actually opened. Both times, the Hyperliquid crowd came out top, beating the bankers at their own game.

And should Hyperliquid’s traders once again price the deal correctly, those shut out of Anthropic’s listing will know precisely how much the bankers, their favoured clients, and early backers stand to make, well before a single share has changed hands.

Wall Street spent decades running a members-only club, and Hyperliquid just left the door wide open. In essence, pre-IPO perpetual futures continue a long tradition of doing what markets do best: turning a private conversation into a public price. So, come on in, the canapés are surprisingly good.

Tokenised Deposits: SoFi has become the first US consumer bank to offer tokenised deposits, paying an annual yield of 4.4 per cent through its SoFi Earn product. Chief executive Anthony Noto is courting crypto investors who shelter cash in stablecoins during market turbulence, offering them interest and the ability to buy Bitcoin and other tokens directly from their tokenised balances.

CPI Futures: Kalshi plans to launch futures contracts linked to the US consumer price index in December, in a bid to position itself as the go-to venue for trading inflation. The move marks a further step in the prediction market’s push to turn macroeconomic data releases into directly tradable products.

Final Rule: The Office of the Comptroller of the Currency has published a final rule bringing dollar-backed stablecoins into the mainstream US banking system, with strict requirements on reserves, redemptions, and custody. The framework offers issuers long-sought regulatory clarity and a boost to the sector’s credibility, though it retains a ban on paying yield directly to stablecoin holders.

Stablecoin Scorecard: Deutsche Bank Research has published a report assessing the state of the global stablecoin market a year after the GENIUS Act became US law. The review comes as banks and policymakers weigh how far dollar-pegged tokens have travelled from crypto trading tool towards mainstream payments instrument.

Stablecoin Infrastructure: Visa was reported to be in talks to acquire Fireblocks, the digital asset and stablecoin infrastructure group, for about $2.5bn, a report Fireblocks has denied. Whether or not a deal materialises, the speculation suggests Visa is in the market for stablecoin infrastructure after rival Mastercard agreed to buy BVNK.

Deposit Token: JPMorgan has extended JPM Coin (JPMD), its US dollar deposit token, to the Ethereum blockchain. The expansion gives institutional clients access to a broader and more resilient form of onchain cash that sits alongside the assets, collateral, and counterparties they already deal with.

And that's a wrap!

You can reach me anytime over on 𝕏 or drop me a line.

Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}