Market Overview
Financial markets saw significant corporate developments, from Unitree Robotics surging 600% in its Shanghai debut to Anthropic reaching a $65 billion annualized revenue run rate ahead of a planned IPO. Meanwhile, geopolitical tensions escalated after a cargo ship attack in the Strait of Hormuz following the expiration of the U.S.-Iran ceasefire. Additionally, Japan's 10-year government bond yield reached a three-decade high of 2.945% as rate hike expectations mounted.
The US Office of the Comptroller of the Currency granted conditional approval for World Liberty Financial to establish a national trust bank. The newly formed World Liberty Trust Company will issue and redeem the firm's USD1 stablecoin in-house, taking over operations previously handled by BitGo Bank & Trust. The narrow charter authorizes the entity to manage reserves, custody digital assets, and settle payments, but excludes retail deposits and commercial lending. The OCC conditioned the approval on a minimum capital requirement of $20 million and other preopening terms. The decision immediately drew fierce pushback from lawmakers, with Senator Elizabeth Warren and nine colleagues introducing the Ending Presidential Corruption in Banking Act in response to the approval.
Fermi disclosed that the U.S. District Court for the Eastern District of New York and the Securities and Exchange Commission issued document requests regarding its Project Matador data center development and former management. The developer reported holding just over $62,000 in cash and nearly $30,000 in restricted cash at the end of the second quarter, alongside $431,000 in convertible senior notes maturing in 2031. Co-founder and former CEO Toby Neugebauer departed in April and subsequently sued the company over his exit, while the board appointed Lee McIntire as CEO. The company previously lost $150 million in construction funding when an unnamed tenant withdrew from the project. Institutional and insider selling has accelerated, with directors and officers liquidating shares worth a significant amount over a recent period.
Japan's benchmark 10-year government bond yield rose 2.5 basis points to 2.945% on Tuesday, hitting its highest level in three decades. The sell-off in Japanese debt reflects intensifying inflation worries linked to climbing global oil prices and a stalemate in Middle East peace talks, alongside growing expectations for a near-term interest rate increase by the Bank of Japan. Central bank officials have adopted an increasingly hawkish tone, with reports indicating the policy board may accelerate its monetary tightening pace. Benchmark 10-year JGB futures declined to 125.97 yen as investors priced in tighter policy and higher global borrowing costs.