Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From US banks finally getting the crypto green light and Real Finance's $29M tokenization play to Trump's Fed chair interviews and Cursor's bold stance against AI giants, we've got a lot to unpack. So, buckle up and get ready for a wild ride through the wonderland of digital assets and cutting-edge tech!

INTEL BRIEF

🟧 The US Office of the Comptroller of the Currency just gave national banks the green light to facilitate crypto transactions as intermediaries without holding digital assets on their balance sheets.

🟧 Real Finance just bagged $29 million to build institutional infrastructure for tokenized real-world assets, targeting $500 million in tokenized RWAs as the market explodes.

🟧 Trump is reportedly interviewing Fed chair candidates this week, with National Economic Council director Kevin Hassett leading the race but facing competition from former Fed governor Kevin Warsh and others.

🟧 Cursor's CEO Michael Truell says the AI coding assistant won't be crushed by OpenAI and Anthropic's competing products, comparing theirs to "concept cars" while Cursor is the production-ready vehicle.

National Banks Can Now Play Crypto Middleman Thanks to New OCC Guidance

Well, those days might be coming to an end. The US Office of the Comptroller of the Currency (OCC) just dropped an interpretive letter that's basically a permission slip for national banks to play matchmaker in the crypto world.

Here's the deal: Banks can now act as "riskless principals" in crypto trades, which is fancy finance-speak for being the middleman without actually touching the goods. Think of it like being a crypto Uber driver – you facilitate the ride, but you're not buying the car or storing it in your garage. One customer wants to buy Bitcoin? The bank simultaneously finds someone selling Bitcoin and connects them. No crypto sits on the bank's balance sheet, no drama.

The OCC is basically saying this falls under the "business of banking" umbrella, which means it's just another day at the office for these institutions. But don't think banks can just YOLO into crypto trading – they still need to confirm everything is legal, manage their risks, and keep their compliance departments happy (those poor souls).

The timing here is chef's kiss. This comes right after OCC head Jonathan Gould said crypto firms seeking bank charters should be treated like traditional banks. It's a complete 180 from the Biden era's alleged "Operation Choke Point 2.0," where banks reportedly got side-eyed for even thinking about crypto. Now under the Trump administration, it's apparently all systems go for digital assets. The letter specifically mentions that customers can now "transact crypto-assets through a regulated bank" instead of those sketchy, barely-regulated options your cousin keeps DMing you about.

National banks can now facilitate crypto trades as intermediaries without holding digital assets on their balance sheets

Banks must still manage risks and ensure compliance with existing banking laws and regulations

Major policy shift from previous administration's restrictive approach to crypto banking activities

Real Finance Raises $29M to Tokenize Half a Billion Dollars Worth of Real World Assets

Real Finance just secured $29 million in funding to build the plumbing that'll help institutions tokenize everything from Treasury bills to... GPUs? (We'll get to that.)

The funding round was led by a $25 million commitment from Nimbus Capital, with Magnus Capital and Frekaz Group throwing their hats in the ring too. Real Finance isn't messing around – they're aiming to tokenize $500 million worth of real-world assets (RWAs), which they say would grab about 2% of today's tokenized market. Humble goals, really.

Here's where it gets spicy: The tokenized RWA market has been absolutely cooking lately. Tokenized money market funds alone have grown roughly tenfold since 2023, according to the Bank for International Settlements. That's not a typo – 10x growth. Even the big dogs are getting in on the action, with Goldman Sachs and BNY Mellon diving into tokenized money market funds like they're the hottest new ETF.

But wait, there's more! Chris Yin, CEO of RWA-focused blockchain Plume, told Cointelegraph they're tracking to 10x the number of RWA holders since the start of this year. His prediction for next year? A casual 25x+ user growth. No big deal, just exponential adoption of blockchain technology in traditional finance.

The best part? The market is expanding beyond boring old US Treasury products. We're talking private credit, mineral rights, energy assets, and GPUs. Yes, you read that right – someone is apparently tokenizing graphics cards. The future is weird, folks. According to a Binance Research report, clearer regulatory expectations in the US could bring even more institutions to the tokenization party, which means this trend is just getting started.

Real Finance raised $29M to build institutional infrastructure for tokenized real-world assets

Tokenized money market funds have grown 10x since 2023, with Goldman Sachs and BNY Mellon jumping in

Market expected to see 25x+ user growth next year as tokenization expands beyond Treasuries into private credit, energy, and even GPUs

Trump Begins Fed Chair Interviews as Kevin Hassett Leads the Race at 73% Odds

President Trump is reportedly kicking off interviews for the next Federal Reserve chair this week, and Treasury Secretary Scott Bessent has narrowed it down to four finalists. No pressure, right?

According to the Financial Times, the shortlist includes former Fed governor Kevin Warsh (meeting with Bessent on Wednesday) and National Economic Council director Kevin Hassett, who's believed to be the frontrunner. The other two spots? They're picking from a roster that includes Fed governors Christopher Waller and Michelle Bowman, plus BlackRock's chief investment officer Rick Rieder. Basically, it's like the Avengers of monetary policy nerds.

Here's where it gets juicy: Trump accidentally (or maybe not?) turned this into a prediction market frenzy. On December 2nd, he casually called Hassett the "potential Fed chair" while welcoming White House guests, and boom – Hassett's odds on Kalshi and Polymarket skyrocketed to 85%. Classic Trump move: say something offhand, break the internet. Since then, Hassett's odds have cooled to around 73%, while Warsh is sitting at 13% on Kalshi.

But wait – Trump himself said he's "going to be looking at a couple different people, but I have a pretty good idea of who I want." Translation: he's probably already decided but wants to keep us all guessing. A decision is expected to drop in January, which means crypto markets are about to get very interesting under new Fed leadership.

Hassett, despite being Trump's guy, insists he'll stay apolitical if chosen. When asked if he'd blindly follow Trump's orders, he told The Wall Street Journal, "You just do the right thing." He even gave a hypothetical: if inflation jumped from 2.5% to 4%, "You can't cut" rates – implying he'd trust his own judgment. Whether Trump actually lets him make independent calls? Well, that's the multi-trillion-dollar question.

Trump begins Fed chair interviews this week with four finalists, including frontrunner Kevin Hassett and former Fed governor Kevin Warsh

Hassett's odds sit at 73% on prediction markets after spiking to 85% following Trump's "potential Fed chair" comment

New Fed leadership will impact crypto markets, with Hassett claiming he'll remain apolitical despite close Trump ties

Cursor Hit $1 Billion in Revenue and Says It's Not Worried About OpenAI Competition

Cursor CEO Michael Truell is living that dream, and honestly? He's got some interesting points.

Speaking at Fortune's AI Brainstorm conference, Truell explained why Cursor – which hit $1 billion in annualized revenue in November – isn't sweating the fact that OpenAI and Anthropic are building their own AI coding tools. His analogy? Their products are "concept cars" while Cursor is the production automobile you'd actually drive. Basically, having a powerful engine doesn't mean you've built a full car with working brakes, cup holders, and that new car smell.

Here's the tea: Cursor uses models from multiple providers (including those competitors) and builds its own product-specific LLMs. Their in-house models now "generate more code than almost any other LLMs in the world," according to a November blog post. It's like being a master chef who uses the best ingredients from different suppliers while also growing some secret herbs in the backyard.

The elephant in the room? Cursor's awkward relationship with its frenemies. OpenAI reportedly tried to acquire Anysphere (Cursor's parent company) earlier this year, but they said no thanks. The drama intensified when Cursor switched from all-you-can-eat subscription pricing to a usage-based model in July, directly passing API costs to users. Some customers got hit with surprise bills that caused, shall we say, "an uproar." Truell's defense? People went from asking quick JavaScript questions to making Cursor do hours of work, so the pricing had to evolve.

Looking ahead, Truell wants Cursor to tackle complex agentic tasks end-to-end – think bugs that are "easy to describe but take weeks" to fix. He's also hinting at features for teams rather than just individual coders, plus better cost-management tools for enterprises. Meanwhile, Amazon just dropped a coding tool that can run for days, and the AI big shots (Anthropic, OpenAI, Microsoft) launched a consortium for open source agentic standards. Competition? What competition?

Cursor hit $1B in annualized revenue and raised $2.3B at a $29.3B valuation, with no IPO plans yet

CEO dismisses OpenAI/Anthropic competition as "concept cars" while Cursor builds production-ready tools with custom LLMs

Shifted to usage-based pricing after customers began using AI for hours of work, causing billing controversy among users

And that's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit richer (in knowledge, of course). From banks embracing crypto to AI coding wars heating up, the future is looking deliciously unpredictable. Remember to stay curious, stay informed, and keep spreading the love. Until next time, this is Mochi, signing off with a virtual high-five!

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