PA Daily News | The Federal Reserve cut interest rates by 25 basis points as expected; multiple consensuses were reached in the China-US trade negotiations; OpenAI is preparing for an IPO with a poten

Today's top news highlights:

Macro

The Federal Reserve cut interest rates by 25 basis points as expected, but two dissenting votes indicated growing disagreement.

According to Jinshi News, at 2:00 AM Beijing time on Thursday, the Federal Reserve cut interest rates by 25 basis points as expected, lowering the target range for the benchmark interest rate to 3.75%-4.00%, the lowest level in three years. This is the Fed's second consecutive rate cut at its meeting, aimed at preventing the recent slowdown in hiring from developing into a more serious economic problem. Two policymakers voted against the decision: Fed Governor Milan again advocated for a larger reduction in borrowing costs, supporting a 50 basis point cut, while Kansas City Fed President Schmid argued that rates should not be cut while inflation remains persistent. Typically, the economic reports released by the Fed between meetings help bridge internal divisions. However, the lack of new labor market indicators this time deprived officials of crucial information to resolve their differences. In addition, the Fed announced the restart of a limited-scale Treasury bond purchase program. This move came after signs of liquidity stress in the money market, which the Fed had previously pledged to avoid. According to the balance sheet adjustment plan, starting December 1, the Federal Reserve will keep the total amount of assets held roughly stable on a monthly basis, but will adjust the portfolio structure by reinvesting the proceeds from maturing mortgage-backed securities (MBS) into short-term U.S. Treasury notes.

The China-US trade talks in Kuala Lumpur reached several important consensuses.

According to the Ministry of Commerce, China and the United States reached several important consensuses during the trade consultations in Kuala Lumpur: The US will remove the 10% fentanyl tariff on Chinese goods (including goods from Hong Kong and Macau) and continue to suspend the 24% reciprocal tariff on Chinese goods for another year. China will adjust its countermeasures accordingly, and both sides agreed to extend some tariff exclusions. The US will suspend its 50% penetration rule on export controls announced on September 29 for one year, and China will also suspend its related export control measures announced on October 9 for one year, and study and refine specific plans. The US will suspend its Section 301 investigations against China's maritime, logistics, and shipbuilding industries for one year, and China will suspend its countermeasures accordingly for one year. In addition, both sides reached consensus on issues such as fentanyl control cooperation, expanding agricultural trade, and handling individual cases involving enterprises, and confirmed the results of the Madrid trade consultations. The US made positive commitments in the investment field, and China will properly resolve issues related to TikTok. The Ministry of Commerce stated that the results of these consultations inject more stability and certainty into China-US trade cooperation and the world economy.

The Hong Kong Monetary Authority (HKMA) will establish a comprehensive digital currency framework to promote the complementary coexistence of digital Hong Kong dollars, tokenized deposits, and stablecoins.

In an article titled "Paving the Way for Hong Kong's Digital Economy" published in *The Hong Kong Monetary Authority*, Chief Executive Eddie Yue announced the release of a blueprint for the next phase of fintech development to ensure Hong Kong remains at the forefront of fintech. The Hong Kong Monetary Authority will explore central bank digital currencies (CBDCs) and build next-generation data infrastructure, further studying tokenization to improve the financial system. Furthermore, Hong Kong will establish a comprehensive digital currency framework to promote the complementary coexistence of different forms of tokenized currencies, including digital Hong Kong dollars, tokenized deposits, and regulated stablecoins.

Hong Kong Securities and Futures Commission Chairman: Plans to provide guidance for digital asset treasuries and study the issue of listed companies purchasing Bitcoin.

According to a report in the Hong Kong Wen Wei Po, Wong Tin-yau, Chairman of the Hong Kong Securities and Futures Commission (SFC), stated yesterday that Hong Kong currently lacks regulations governing listed companies' participation in cryptocurrency investments. He added that the SFC will monitor the market situation and study providing relevant guidance. Wong further stated that Hong Kong currently has no legislation regulating listed companies' participation in virtual asset treasury arrangements. Regarding listed companies claiming to adopt Digital Asset Treasuries (DAT), Wong urged investors to carefully understand what DAT is and its underlying value. He also indicated that the SFC will study the issue of listed companies purchasing Bitcoin.

CME's FedWatch Tool: The probability of a 25 basis point rate cut by the Federal Reserve in December is 67.8%.

According to CME Group's "FedWatch," the probability of the Federal Reserve cutting interest rates by 25 basis points in December is 67.8%, while the probability of keeping rates unchanged is 32.2%. The probability of the Fed cumulatively cutting rates by 25 basis points by January next year is 56%, the probability of keeping rates unchanged is 21.5%, and the probability of cumulative rate cuts of 50 basis points is 22.5%.

Opinion

Zhao Changpeng: All BNB I hold were purchased with my own funds, and I have never sold them except for personal consumption.

Zhao Changpeng stated on the X platform: "I have never 'sold' BNB (except for BNB used for consumption). In addition, my BNB was not obtained through distribution, but was purchased with my own money in the early days."

Powell: Another rate cut in December is not a certainty; government shutdown will impact economic activity.

According to CLS News Agency, Federal Reserve Chairman Jerome Powell stated at a press conference that the market's expectation of another rate cut in December is "far from a done deal"—a statement that severely impacted risk assets currently being traded. Powell said that current data suggests the outlook hasn't changed much, the economy is expanding moderately, the labor market appears to be gradually cooling, and inflation remains slightly high. "Data before the shutdown suggests the economy is likely on a more solid track," Powell said. He added that the government shutdown will temporarily drag down economic activity, and current evidence suggests that layoffs and hiring remain low, with downside risks to employment appearing to have increased. These comments are consistent with the earlier policy statement. Regarding inflation, Powell added that the decline in services inflation appears to be continuing, most measures of long-term inflation expectations are in line with the target, but recent inflation expectations have risen as higher tariffs are pushing up prices for some goods. He also acknowledged that "in a reasonable baseline scenario, the impact of tariffs on inflation will be temporary." Powell emphasized the need to manage the risk of prolonged inflation, and that the Fed has a responsibility to ensure it doesn't become a persistent problem and to respond promptly to economic developments. During the Q&A session, Powell stated that if data shows an improvement in the job market, it would influence policy decisions. He mentioned uncertainty about what data the Fed would receive before the December meeting, and the lack of economic data could provide a reason to pause interest rate adjustments. Regarding "ending balance sheet reduction," Powell stated that the Fed cannot address both employment and inflation risks with a single tool, and the balance sheet decision allows the market some time to adjust. With money market liquidity tightening over the past three weeks, continuing balance sheet reduction would offer little benefit. Nick Timiraos, often referred to as the Fed's mouthpiece, commented that the FOMC, as a whole, does not agree with the market's high pricing of a December rate cut. This goes beyond their usual disclaimer that "policy does not follow a predetermined path." Timiraos believes this is clearly an attempt by the Fed to regain some policy flexibility to avoid being forced to take a specific action.

Project Updates

Arthur Hayes has once again called for Zcash token ZEC to rise to $10,000 after a four-day hiatus.

Arthur Hayes has once again recommended Zcash (ZEC) after a four-day hiatus, expressing confidence in its future performance and predicting that ZEC could rise to $10,000. Previously, on October 26th, Arthur Hayes stated that the Zcash token ZEC might reach $10,000.

Binance Alpha will list NB, BAY, and BEAT tokens and conduct airdrops.

Binance Alpha will be the first platform to list the following projects: Nubila Network (NB) airdrop on October 31st, Marina Protocol (BAY) airdrop on November 1st, and Audiera (BEAT) airdrop on November 1st. Eligible users can claim the airdrops using Binance Alpha Points on the Alpha event page after trading opens on Alpha. Further details will be announced separately.

Stable's initial large depositors are selling deposit certificates through their own pool, currently at a 14% premium.

On-chain data shows that large depositors who made the initial Stable deposits have created liquidity pools on Uniswap containing the deposit certificate token ctStableUSDT and USDT, currently totaling approximately $13.9 million. The deposit certificate token ctStableUSDT is currently trading at 1.14 USDT, a 14% premium. Previously, it was reported that only 274 addresses successfully participated in the first phase of the $825 million Stable pre-deposit quota. Stable announced yesterday that the second phase of the pre-deposit program will launch next week.

zkPass releases token economics: Total supply 1 billion tokens, community participation 48.5%.

ZKPass, a privacy-preserving protocol, has announced its tokenomics. The ZKP token is based on the ERC-20 standard and has a total supply of 1 billion. Token features include a settlement medium, validator collateral, network credits, service access, and cross-system verifiability and governance. Regarding token distribution and unlocking plans: 48.5% for the community (12.5% unlocked at TGE, 6% linearly released in the first 3 months, and 30% released monthly for the next 5 years); 22.5% for early investors (linearly released over 18 months after a 12-month lock-up period); 14% for core contributors (linearly released over 24 months after a 24-month lock-up period); 10% for the DAO treasury (linearly released over 5 years); and 5% for liquidity (100% unlocked at TGE). Previously, in October 2024, ZKPass completed a $12.5 million Series A funding round, reaching a valuation of $100 million.

Western Union has applied to register the WUUSD trademark.

According to CoinDesk, Western Union has applied to register the trademark WUUSD (Western Union US Dollar). Previously, it was reported that Western Union planned to launch USDPT, a stablecoin built on the Solana blockchain, in 2026.

Bybit: bbSOL receives institutional hosting support from Anchorage Digital

Bybit has announced that its Solana staking asset, bbSOL, has officially received institutional-grade custody support from Anchorage Digital. Anchorage Digital is the first federally chartered crypto bank in the United States, providing secure and compliant asset custody services to institutional investors. This partnership marks a significant step for bbSOL towards becoming an "institutional-grade" liquid staking token (LST) within the Solana ecosystem, creating a secure and reliable pathway for regulated entities to participate in on-chain yields. bbSOL is Bybit's Solana staking asset, allowing users and institutions to earn Solana staking rewards while maintaining asset liquidity and flexibility. With Anchorage Digital Bank's secure custody solution, bbSOL holders will benefit from bank-grade security and compliance that meets US federal regulatory standards, further enhancing trust in Solana DeFi among funds, asset management institutions, and enterprises.

Jupiter: The first ICO project on the DTF platform will be HumidiFi

Jupiter announced on its X platform that HumidiFi will be the first ICO project on its DTF platform. Unlike DEXs, HumidiFi does not use open public liquidity pools; instead, it provides private liquidity from market makers or internal entities. Orders are routed through aggregators, reducing delays and improving efficiency.

MegaETH's public offering has raised $954 million, an oversubscription of 19.1 times.

According to official data, the MegaETH public sale has raised $954 million (the bidding demand, with an actual limit of $50 million), which is 19.1 times oversubscribed. The public sale will end in 11 hours and 50 minutes.

Important data

A whale transferred 10,000 ETH, which it had held for two months, to Binance, expecting a loss of $7.52 million.

According to on-chain analyst Ember, a whale transferred 10,000 ETH ($39.11 million) to Binance 15 minutes ago. This 10,000 ETH was withdrawn from OKX two months ago, at which time it was worth $46.63 million. This means a loss of $7.52 million.

Ethereum spot ETFs saw a total net outflow of $81.4442 million yesterday, with only BlackRock ETHA experiencing a net inflow.

According to SoSoValue data, Ethereum spot ETFs saw a total net outflow of $81.4442 million yesterday (October 29th, Eastern Time). The Ethereum spot ETF with the largest single-day net inflow was BlackRock ETF ETHA, with a net inflow of $21.3601 million. ETHA's historical total net inflow has reached $14.324 billion. The Ethereum spot ETF with the largest single-day net outflow was Fidelity ETF FETH, with a net outflow of $69.4904 million. FETH's historical total net inflow has reached $2.732 billion. As of press time, the total net asset value of Ethereum spot ETFs is $26.601 billion, with an ETF net asset value ratio (market capitalization as a percentage of Ethereum's total market capitalization) of 5.58%. The historical cumulative net inflow has reached $14.651 billion.

Bitcoin spot ETFs saw a total net outflow of $471 million yesterday, with none of the twelve ETFs experiencing net inflows.

According to SoSoValue data, Bitcoin spot ETFs saw a total net outflow of $471 million yesterday (October 29th, Eastern Time). The Bitcoin spot ETF with the largest single-day net outflow was Fidelity ETF FBTC, with a net outflow of $164 million. FBTC's historical total net inflow has reached $12.5 billion. This was followed by Ark Invest and 21Shares ETF ARKB, with a single-day net outflow of $144 million. ARKB's historical total net inflow has reached $2.119 billion. As of press time, the total net asset value of Bitcoin spot ETFs was $149.975 billion, with an ETF net asset value ratio (market capitalization as a percentage of Bitcoin's total market capitalization) of 6.75%. The historical cumulative net inflow has reached $61.866 billion.

Owen Gunden deposited another 395.8 BTC into Kraken, worth $43.55 million.

According to Onchain Lens, early Bitcoin investor Owen Gunden (@bitbitrage) has deposited an additional 395.8 BTC, worth $43.55 million, into Kraken.

A Solana ancient whale address transferred 200,000 SOL to Coinbase Prime.

According to analyst Emmett Gallic, an ancient Solana whale address transferred 200,000 SOL (currently worth $40 million) to Coinbase Prime eight hours ago. This address received 222,000 SOL five years ago from an address labeled "Solana: Non-circulating Supply," when the SOL price was only $1.68.

Financing/Acquisition

YZi Labs has led an $11 million seed funding round for VideoTutor, an AI software for the education sector.

According to official news, YZi Labs announced that it has led an $11 million seed funding round for VideoTutor, an AI software platform for the education sector. This round also attracted participation from JinQiu Fund (a fund affiliated with ByteDance), Baidu Ventures, Amino Capital, and BridgeOne Capital, among others. This is YZi Labs' first investment in the artificial intelligence software field since expanding its investment scope earlier this year. VideoTutor is an "educational AI agent" that transforms any question into a personalized animated lesson, making high-quality tutoring services readily available. Founded by 20-year-old entrepreneur Kai Zhao, the platform uses a Large Language Model (LLM) + Manim animation rendering workflow to generate accurate and highly adaptable AI teaching videos. Currently, its services reach 20,000 users worldwide and have received over 1,000 API integration requests.

Payment infrastructure provider Pieverse receives $3 million investment from CMS Holdings.

Pieverse, an EB3 payments and compliance infrastructure startup, announced it has secured $3 million in funding from CMS Holdings to support the expansion of its x402b protocol on the BNB Chain. This brings its total funding, including seed and strategic round investments, to $10 million. Previously, on October 27th, Pieverse launched the x402b protocol to enable gas-free payments on the BNB Chain . Pieverse's on-chain timestamping protocol fills a gap in Web3's verification layer, providing trusted, transparent, and cross-chain interoperable cryptographic proofs for invoices, receipts, and transactions.

Web3+AI project PoobahAI raises $2 million in seed funding.

No-code AI platform PoobahAI announced it has secured $2 million in seed funding from FourTwoAlpha Ltd. The new funding will support PoobahAI's aggressive roadmap in the AI-Web3 convergence field and drive its market expansion plans. Its flagship product, MCP Server, connects an AI agent directly to the blockchain infrastructure layer, enabling seamless multi-chain operations and transforming static blockchains into dynamic, self-sufficient systems.

DRW is leading talks to raise $500 million for a publicly traded Canton token reserve company.

Canton Network's backers are in talks to raise approximately $500 million for a publicly traded entity that will invest in the tokens of the bank-backed blockchain project, becoming the newest member of its digital asset reserve. Sources familiar with the matter revealed that trading giants DRW Holdings and Liberty City Ventures will provide the majority of the funding in the form of Canton tokens (not yet listed on cryptocurrency exchanges). $100 million to $200 million will come from external investors. Details are subject to change as the deal is not yet finalized. The entity will also support the network's overall utility by acting as a supervalidator (which generates tokens) and developing blockchain-related applications. Sources indicate that Mark Toomey, managing director of Liberty City Ventures, will serve as president of the entity, while former DRW COO Mark Wendland will serve as CEO. Clear Street is providing banking advice for the deal. It is currently unclear where the entity will be traded. Launched in 2023 and developed by Digital Asset Holdings, Canton Network received $135 million in funding from DRW and Tradeweb Markets in June of this year, with participation from financial giants such as Goldman Sachs, Citadel Securities, and Liberty City.

Axios: MetaMask parent company Consensys has hired JPMorgan Chase and Goldman Sachs to lead its IPO.

According to Axios, sources revealed that Consensys, the parent company of MetaMask, has hired JPMorgan Chase and Goldman Sachs to lead its initial public offering (IPO). The IPO could take place as early as 2026, but details regarding its size and valuation have not been disclosed.

Reuters: OpenAI is preparing for an IPO, which could value it at up to approximately $1 trillion.

According to Reuters, sources familiar with the matter said that OpenAI is paving the way for an initial public offering (IPO) that could value the company at up to $1 trillion, potentially making it one of the largest IPOs ever. OpenAI is considering filing for listing with securities regulators as early as the second half of 2026. In initial discussions, the company is considering a minimum fundraising amount of $60 billion, but the actual amount could be higher. Negotiations are still in the early stages, and plans, including specific figures and timelines, may change depending on business growth and market conditions. The sources also said that Chief Financial Officer Sarah Friar has told some colleagues that the company plans to go public in 2027.

Mastercard plans to acquire crypto startup Zerohash for up to $2 billion.

According to Fortune magazine, sources revealed that payments giant Mastercard has entered late-stage negotiations to acquire cryptocurrency and stablecoin infrastructure startup Zerohash for between $1.5 billion and $2 billion. The deal could still fall through, but if completed, it would be Mastercard's largest investment in the stablecoin space to date. This potential acquisition follows talks between Mastercard and stablecoin startup BVNK. Sources say that Mastercard's payment network had late-stage negotiations with Coinbase to acquire the startup for approximately $2 billion, and Coinbase appears to have won the bidding war, securing an exclusive agreement with the company, meaning BVNK cannot accept offers from other bidders.

TRUMP token issuer Fight Fight Fight is in talks to acquire Republic's US operations.

According to Bloomberg, sources familiar with the matter revealed that Fight Fight Fight LLC, the startup that launched its Meme coin "TRUMP" days before Trump's second presidential inauguration, is in talks to acquire the U.S. operations of crowdfunding website Republic.com. One anonymous source said that if the deal goes through, Fight Fight Fight could encourage investors to use the Trump-related token for transactions while helping cryptocurrency startups raise funds. The source also indicated that Republic is in talks with several potential strategic partners. One source stated that Fight Fight Fight has been working to expand the use of its Meme coin, and some websites have already begun using it for payments. Through the acquisition of Republic, Fight Fight Fight could potentially distribute grants in Meme coins and allow people to use the token to invest in startups and pay fees. The Republic.com website shows that the platform has supported over 3,000 funding rounds. The Republic website also lists its investors as including Galaxy Digital and Binance's venture capital arm.

Institutional holdings

SpaceX transferred another 281 BTC, possibly for escrow purposes.

According to Lookonchain, SpaceX has just transferred another 281 BTC (worth $31.28 million) to a new wallet—likely for escrow purposes. This marks the third time SpaceX has transferred its BTC holdings in the past 10 days.

Bitmine received 33,948 ETH from FalconX 9 hours ago, worth $135 million.

According to on-chain analyst Ember, Bitmine received 33,948 ETH ($135 million) from FalconX nine hours ago. They have increased their holdings by 61,264 ETH ($248 million) this week through BitGo and FalconX.

Solana Company, a publicly traded company, disclosed that it has increased its holdings of SOL tokens by $20 million.

According to The Block, Nasdaq-listed Solana Company (ticker symbol HSDT, formerly Helius Medical Technologies) has continued to increase its Solana (SOL) reserves this month. A Wednesday announcement revealed that the company added approximately 100,000 SOL tokens, worth about $20 million, bringing its total SOL holdings to over 2.3 million tokens. The company also disclosed that its staking yield averaged over 7%, slightly higher than the average of approximately 6.7% for the top ten validators. Despite the significant increase in on-chain asset value, HSDT's stock price has fallen by more than 50% over the past month. According to Google Finance data, its stock price traded near $6.75 on Wednesday, a sharp drop from its high of over $14 in early October.