TL;DR

Fed greenlights bank crypto custody; Bitcoin hits $130K ATH; Aave tops $51B TVL, DeFi share.

Highlights

• Fed, FDIC, and OCC clarified U.S. banks may custody crypto under strict compliance, requiring full control of private keys 1.
• Bitcoin hit record highs near $130,000, surpassing Amazon , Google , and silver in market cap; ETF demand and institutional adoption drive gains 26.
• Grayscale filed confidentially for a U.S. IPO, signaling further mainstreaming of crypto asset management 5.
• Vanguard became the largest shareholder in Strategy (ex-MicroStrategy ) via index funds, increasing passive exposure to Bitcoin proxies 7.
• Aave surpassed $50B in net deposits and $51B TVL, holding 17.9% DeFi market share and ranking among top 50 U.S. banks by deposits 4.
• Pump.fun raised $600M in its PUMP ICO, debuting at a $6.1B valuation on Solana, highlighting strong demand for meme assets 3.
• Project X DEX launched on HyperEVM, targeting cross-chain EVM trading with early protocol rewards 9.
• Bitcoin and Ethereum ETFs saw strong inflows; over $1B in shorts liquidated, coinciding with U.S. “Crypto Week” legislative focus 8.
• Trump’s 30% tariff threats on EU/Mexico weighed on global risk sentiment; Port of LA set record import volumes ahead of tariff deadlines 1118.
• Silver topped $39/oz for first time since 2011, driven by supply crunch and haven demand 12.

Commentary

Regulatory clarity from U.S. banking agencies on crypto custody is a notable shift, potentially unlocking new institutional flows as banks are now explicitly permitted to hold digital assets under strict compliance regimes 1. This coincides with Bitcoin ’s surge to all-time highs, fueled by robust ETF demand and anticipation around U.S. Congressional “Crypto Week,” where multiple crypto-related bills are in focus 28. The combination of regulatory progress and legislative attention is likely to keep volatility elevated and may support further institutional participation.

DeFi continues to scale, with Aave’s $51B TVL milestone underscoring the protocol’s dominance and the sector’s growing overlap with traditional finance 4. Meanwhile, the explosive $600M Pump.fun ICO and rapid PUMP token debut on Solana highlight ongoing appetite for meme assets and the ability of scalable blockchains to absorb surges in retail demand 3. New cross-chain venues like Project X on HyperEVM reflect the persistent push for trading infrastructure that can serve the expanding EVM ecosystem 9.

On the macro front, U.S. tariff threats have weighed on risk assets and driven record import volumes at key ports 1118, while silver’s rally above $39/oz signals heightened haven demand amid supply constraints and geopolitical uncertainty 12. These dynamics may indirectly benefit digital assets as traders seek alternatives to traditional markets, which are showing signs of fragility with record equity valuations and narrow market breadth 13.

Traders should focus on U.S. policy headlines, ETF flow data, and further moves by traditional finance institutions into crypto custody. Short-term volatility is likely, especially around Congressional developments and any major ETF or custody-related announcements.