Custodia Bank has won a legal victory in its case against the Federal Reserve, as a judge in Wyoming has rejected dismissal motions from both the Fed and the Federal Reserve Bank of Kansas City. The digital asset bank had sued the Federal Reserve in June 2022, claiming that there had been an "unlawful delay" in processing an application for its master account. The application, if granted, would enable the bank to use the Federal Reserve's payment system, the FedWire network, which processed over 196 million transactions last year. Custodia was one of Wyoming's first Special Purpose Depository Institutions (SPDIs), also known as "blockchain banks," and was founded in 2020 by Caitlin Long, a former Morgan Stanley executive and early Bitcoin proponent.

Custodia Bank, which aims to bridge digital assets and the U.S. dollar system, has hailed a recent ruling in its legal battle against the Federal Reserve as a significant victory. The Wyoming Federal Judge's decision, which rejected the Federal Reserve's request to dismiss the lawsuit, has given the bank renewed hope.

The United States House Financial Services Committee has released the third draft of the stablecoin bill, which aims to provide clarity for the digital asset ecosystem. The latest version of the bill proposes the Federal Reserve as the key regulator for issuing stablecoins, but also grants state regulators powers to oversee the companies issuing the tokens.

Despite Turkish President Tayyip Erdogan's appointment of a U.S. banking executive and a well-respected former finance minister, the Turkish lira continues to plummet, reaching an unprecedented low of 23.54 per dollar in Asian hours. Investors remain skeptical of Erdogan's promises to return to more orthodox policy. The Federal Reserve remains the central bank at the center of global attention, with the ECB and Bank of Japan also meeting next week. 

Markets are anticipating the Federal Reserve to pause rate hikes next week and will be closely monitoring economic data due to a blackout on Fed speakers. The Australian central bank raised rates on Tuesday, causing the Aussie dollar to rise.

The US dollar has fallen from its 2-1/2-month highs due to weak US services data, leading to expectations of a rate pause at the Federal Reserve's meeting next week. The Reserve Bank of Australia's policy decision is also being closely watched, with analysts and investors divided on whether the central bank will hike or hold.

JPMorgan has partnered with six Indian banks to settle interbank dollar transactions using blockchain technology on its Onyx platform. This pilot project aims to enable 24/7 transaction settlement, which is much faster than the traditional system that takes a few hours and is not available during weekends and public holidays. JPMorgan also predicts a surge in Bitcoin demand due to the upcoming halving event and the increasing price of gold, which is considered a safe haven asset. JPMorgan CEO Jamie Dimon expects a pause in interest rate hikes by the Federal Reserve but warns of potential harsh impacts on the market.

Asian stock markets continued their global rally on Monday morning, with analysts predicting that the Federal Reserve will pause its rate hike this month. The price of crude oil also rose after Saudi Arabia pledged significant output cuts.

The Federal Reserve is set to offer further guidance on Bitcoin and Ethereum in June 2023, with a potential pause in rate hikes if inflation remains low.

The Federal Reserve Board has issued a consent order to Silvergate Bank and its parent company, as the bank plans to wind down operations and liquidate.