Lorenzo Protocol (BANK) Plunge

According to Reuters, the Bank of Japan (BOJ) faces mounting pressure to raise interest rates, with a potential hike as early as September. Sources familiar with the internal discussions indicate the central bank is considering accelerating its tightening pace beyond the current schedule of roughly two increases per year. The September 17-18 policy meeting is now viewed as a critical juncture, with market pricing suggesting an approximately 80% probability of a rate hike. This would mark a third increase for 2024, potentially shifting expectations toward a quarterly tightening cycle. Key drivers behind this hawkish shift are multifaceted inflation risks. A persistently weak yen, near a 40-year low, continues to push up import costs. High wholesale prices at a three-year peak signal pending cost pass-through to consumers. Furthermore, inflation expectations among households, businesses, and economists are nearing or exceeding the BOJ's 2% target, raising concerns about de-anchoring. External factors, including energy price volatility from Middle East conflicts and strong global AI-related demand, add further upward pressure. Internal BOJ communications reveal a growing urgency. The July policy meeting summary showed some board members advocating for faster action to avoid "falling behind the curve." Governor Kazuo Ueda acknowledged the need to consider these heightened inflation risks, suggesting the pace of hikes could be increased if financial conditions are deemed too loose. This sentiment underscores a decisive shift within the BOJ toward preemptive monetary tightening.

The Central Bank of Russia (CBR) plans to monitor potential cases of misselling in the sale of cryptocurrencies and digital instruments, according to Deputy Chairman Mikhail Mamuta. He emphasized that as new regulations for digital currencies are being introduced, it is crucial to oversee how well financial organizations inform people about the risks of cryptocurrencies, not just the opportunities. Mamuta noted that the purchasing process for the general public involves pre-checking investors' knowledge and setting risk limits based on investment amounts, but these measures do not eliminate the need for additional oversight of financial institutions' actions. The CBR will take appropriate measures if violations are identified. The announcement follows the regulator's recent inclusion of Bitcoin, Ethereum, and Tether USDT in the list of cryptocurrencies approved for public trading on exchanges. Qualified investors will be able to purchase all cryptocurrencies traded on exchange and over-the-counter markets without restrictions. This development comes after President Vladimir Putin signed a law establishing the legal framework for cryptocurrency circulation in Russia, regulating operations with digital currencies and defining their use under Russian law.

Bank of Montreal (BMO) reported holding XRP-related positions valued at $2,970 within its massive $303.65 billion investment portfolio in a recent 13F filing with the U.S. SEC. The exposure, comprising shares in two exchange-traded funds (ETFs), represents a minuscule fraction—approximately 0.000001%—of the bank's total reported securities. The holdings are attributed to Stoker Ostler Wealth Advisors Inc., an investment advisor controlled by BMO, and do not signify direct ownership of XRP tokens. The report clarifies that the two funds—REX-Osprey XRP and Proshares Ultra XRP—are not spot XRP ETFs but structured products with different investment strategies. The filing reflects discretionary investment authority, not beneficial ownership, meaning the positions could be held for advisory clients. This disclosure from Canada's eighth-largest bank by assets is contrasted with a much larger $153.8 million position in spot XRP ETFs reported by Goldman Sachs in late 2025. The article notes that XRP's market capitalization fell 29% in the three months leading up to the report's publication.

Israel's largest bank, Bank Leumi, has partnered with Galaxy Digital to enable customer trading of Bitcoin (BTC), Ether (ETH), and Solana (SOL) through the bank's investment platform, with a planned launch in early 2027. Customers of Leumi and its mobile arm, Pepper, will be able to buy, hold, and sell the cryptocurrencies via the Leumi Trade app, making it the first Israeli bank to offer such services. Leumi will utilize GalaxyOne Institutional for trading and Galaxy's custody infrastructure for security. This partnership follows Galaxy Digital reporting an $85 million net loss in Q2, attributed to falling digital asset prices, although its digital assets business saw a 34% quarterly increase in adjusted gross profit to $66 million.

Israel's largest bank, Bank Leumi, has partnered with Galaxy Digital to allow its clients to trade Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) through its investment platform, Leumi Trade. The service is expected to launch in early 2027. Clients of Leumi and its mobile banking subsidiary Pepper will be able to buy, hold, and sell these three cryptocurrencies directly within the bank's app. This move will make Leumi the first Israeli bank to offer digital asset trading to its customers. Leumi will utilize Galaxy's GalaxyOne Institutional platform for trading and related services, with Galaxy's custody platform (formerly GK8) providing the digital infrastructure. This partnership comes after Galaxy reported an $85 million net loss in Q2, attributed largely to falling digital asset prices. However, the company's digital assets business unit posted $66 million in adjusted gross profit, a 34% increase from the prior quarter.