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The U.S. Office of the Comptroller of the Currency (OCC) has granted a provisional banking license to the blockchain-based bank OpenReserve, which is backed by investors including Andreessen Horowitz, Jump Capital, and Coinbase Ventures. OpenReserve, based in Salt Lake City, Utah, has opted for a full national bank charter to operate as a full-service bank with an integrated blockchain settlement system. It plans to serve institutional clients in treasury management, stablecoin issuance, and tokenized deposits, aligning with the proposed GENIUS Act. The company stated that regulatory compliance and customer trust are foundational to its business. This move is part of a broader trend of new crypto-focused banks emerging, with the OCC under the Trump administration actively encouraging digital asset firms into the regulated banking sector. On the same day, the OCC also conditionally approved a banking license for the UK fintech firm Revolut to operate from Connecticut. OpenReserve still requires final OCC approval for a permanent license.

Revolut and OpenReserve have received preliminary conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish national banks, with plans to offer cryptocurrency services. Revolut aims to launch a bank in Connecticut to reduce costs and provide digital asset custody, crypto-facilitated cross-border transfers, and third-party stablecoins. OpenReserve, a blockchain-based bank startup backed by Andreessen Horowitz, plans a bank in Utah offering traditional banking alongside tokenized deposits, digital asset custody, and a subsidiary to issue dollar-backed stablecoins. Both banks must still meet OCC pre-opening requirements before launching.

Bank of America's chief investment strategist Michael Hartnett warns that a Democratic sweep in the upcoming US midterm elections could trigger a more than 10% decline in US stocks, weaken the dollar, lower bond yields, and burst the AI bubble. He identifies this as a major, yet underpriced, market tail risk. Hartnett highlights that soaring global bond yields pose the biggest threat to the AI capital expenditure boom. With key yields at multi-year highs, he argues long-term bond yields, not equity narratives, are the true anchor for AI investments. AI infrastructure builders will underperform until global 30-year yields fall below 5%. Current polls show a 50% probability of a Democratic sweep, a scenario Hartnett believes would shift policy toward higher taxes and regulation, hurting corporate profits and the AI spending surge. His recommended hedge for this outcome is to short financial stocks and the dollar, while expecting international equities (Europe over Asia) to outperform. Conversely, a Republican hold on both chambers would reignite risk appetite and the AI narrative. The most likely scenario—a divided government—represents a "Goldilocks" state of mild risk-on. Hartnett's strategic advice remains long commodities and gold to hedge inflation and geopolitics. He cautions directly against the crowded AI infrastructure trade, noting negative free cash flow at major cloud providers signals the bubble is fragile. He suggests rotating into defensive sectors like consumer staples, materials, and healthcare.

Bank of America's research report discusses a key communication paradox within the Federal Reserve, highlighted by the divergent signals from Chair Warsh (hawkish) and Governor Waller (dovish) regarding the interest rate path. Warsh, needing to repair credibility after a prior communication misstep, implicitly steered market expectations towards a "Kohn day" approach—delaying hikes but acting more aggressively if inflation worsens. In contrast, Waller described a more conditional, data-dependent "Bernanke day" path. The report argues that clearer communication about policy rules reduces the need for specific forward guidance. On US fiscal matters, while national debt surpassed $40 trillion, this milestone itself is not seen as a direct driver of recent yield increases. The primary concerns are the trajectory of the fiscal deficit, debt issuance, and the rising interest expense burden, which could create a slow but accumulating feedback loop. For other central banks, BoA expects the ECB to deliver a final 25 bps hike in September, ending its tightening cycle. The Bank of England is projected to hold rates in 2026 before a potential cut in late 2027, with economic resilience tempered by energy price uncertainty. In emerging markets, the Philippines faces a widening fiscal deficit, while Central and Eastern European nations show divergent exposures to natural gas price shocks, leading to varied policy outlooks. The global picture is one of policy divergence rather than a unified theme.

SBI Shinsei Trust Bank and SBI VC Trade have begun investing a portion of the JPYSC stablecoin's reserves into short-term Japanese government bonds. An initial 1 billion yen from the assets backing the stablecoin has been allocated for this purpose. JPYSC is a yen-pegged stablecoin issued by SBI Shinsei Trust Bank, which manages its reserves, while SBI VC Trade handles the token's issuance and distribution. The blockchain firm Startale, in collaboration with the SBI Group, is developing JPYSC's technological infrastructure. The stablecoin is intended for use in domestic and international payments, remittances, on-chain forex transactions, and settlements involving tokenized real-world assets. Startale and SBI Group also aim to pioneer new applications for the Japanese yen within blockchain-based financial markets.