Cowboy crypto

Sei (SEI) surged more than 13% overnight after the Wyoming Stable Token Commission selected it as a candidate blockchain for WYST, the first fiat-backed stablecoin issued by a U.S. state.

Meanwhile other states are following New Hampshire's move to create a Bitcoin reserve: On Thursday the Arizona State Senate passed House Bill 2324 in a 16-14 vote to revise state forfeiture laws to classify abandoned digital assets as unclaimed property with a corresponding reserve fund. Texas State Legislature is currently debating similar legislation. 

Turning to the markets, Bitcoin Cash held above $488, reaching $488.45 as of 6 a.m. (EST) with a market cap exceeding $9.7 billion. A past favorite among retail traders, BCH surged to a two-month high above $499 amid renewed institutional demand and broader market uncertainty. The rally brings it close to the key $500 level last tested during April’s breakout attempt. Trading volume has jumped significantly in recent weeks as investors seek lower-cap Bitcoin alternatives amid ongoing macroeconomic pressure on the U.S. dollar.

Cryptocurrency markets pulled back marginally overnight on Thursday amid increased geopolitical conflict concerns.

As of 6 a.m. (EST) Bitcoin had staged a 1% rebound from its overnight level near $104,700, while Ethereum drifted just below $2,860, per CoinGecko. The drop followed a run-up after the U.S. Senate's passage of a stablecoin framework earlier this week signaling a potentially more regulatory-friendly environment for digital assets.

Looking past the big two, Sky Protocol (SKY) fell more than 4.5% in overnight trading to $0.080, as of 6 a.m. (EST) pulling back after a 190% year-to-date surge that pushed its market cap near $2 billion. The decline follows a reported $5 million first-quarter loss in May, a reversal from the $31 million profit in the previous quarter. The loss was driven by a 102% increase in interest payments to token holders, as the protocol — formerly MakerDAO — shifted incentives to promote its new stablecoin, Sky Dollar (USDS), over the existing DAI.

Hyperliquid (HYPE) fell more than 2% over 24 hours to $37.20, as of the same time, extending a decline from highs reached Monday. Earlier in the week, Singapore-based Lion Group Holding announced plans to build a $500 million treasury centered on HYPE. The pullback follows a strong first quarter, during which the token surged 77% on heavy volume. Binance Futures listed HYPE in late May, adding momentum to the native token of rival derivatives exchange Hyperliquid.

Zebec Network, a Solana-based payments platform, has seen its native ZBCN shed more than one-third of its market capitalization since it hit an all-time high of $0.007 about three weeks ago.

Among the drivers of the rally — ZBCN tripled in May — were some announced acquisitions and alliances as well as rumors (never substantiated) about a possible partnership between Zebec and Ripple (BeInCrypto).

Earlier this week, a special bond between ZBCN and XRP, the coin closely associated with Ripple, was in fact created. It came via an announced rewards program for Uphold's eligible U.S. customers who hold at least $50K worth of XRP; the total prize pool is $100K and distribution is set to begin this week. It'll conclude within the next 30 days. Eligible users will receive their ZBCN tokens directly into their Uphold accounts, specifically in a ZBCN sub-account. How much gets allocated will depend on the number of holders who wind up participating.

That $50K minimum holding requirement ensures "a relatively limited pool of participants," The Crypto Basic said, pointing to data that suggests 131,535 XRP wallets in total, across all platforms, currently hold $50K worth of XRP.

Zebec has been on a bit of a spree. Earlier this month, Zebec acquired Gatenox, a compliance and identity platform, in a deal that "embeds compliance into the foundation of programmable finance," said Zebec's M&A chief Neal Padhye. The deal makes Zebec "faster, safer and ready for institutional scale," he added.

At the end of May, Zebec acquired the assets of Science Card, a UK-based e-money account platform that allows users to contribute to scientific research projects via everyday spending.