DraftKings Buys Railbird, Canaan Soars, Zelle Adopts Stablecoins

Sports betting giant DraftKings has officially acquired prediction market platform Railbird, confirming rumors that first surfaced in July. The Nasdaq-listed company, trading under ticker DKNG, faces unique regulatory considerations given its existing sportsbook operations in at least 25 states and daily fantasy sports products in more than 40 states. According to Paul Zilm, a sports betting operations expert at prediction market firm Mojo, several states where DraftKings currently operates have explicitly warned that launching prediction markets could jeopardize regulated gambling licenses.

Rather than testing regulators’ resolve, DraftKings is taking a cautious approach. A company insider revealed that the new prediction market app will focus exclusively on states without legal sports betting, protecting the company’s valuable existing licenses. Despite initial gains following the acquisition announcement, DraftKings shares closed the week at $33.00, down 4.9% for the day and 3.2% for the week, reflecting investor concerns about the regulatory constraints.

Bitcoin mining rig manufacturer Canaan has executed a dramatic reversal of fortune, receiving a $4 price target from Benchmark analyst Mark Palmer who labeled the company an “accelerating turnaround story.” This represents a significant recovery for the company, which in May faced delisting warnings from Nasdaq as its stock traded below $1. The company recently received confirmation that it has regained compliance with listing standards, marking a crucial milestone in its recovery.

Trading under the CAN ticker, Canaan finished the week at $1.89 after gaining 7.39% in the past day and 18.12% over the week, putting it nearly halfway to Benchmark’s new price target. Analyst Palmer highlighted the growing popularity of Canaan’s Avalon Bitcoin mining rigs and noted that the company’s American Depositary Receipts appear “very inexpensive.” He added that Benchmark expects CAN shares “to appreciate as it executes on its strategy, with a potential tailwind coming from the rising price of Bitcoin.”

In a landmark move for traditional finance adoption, payments processor Zelle will begin using stablecoins for cross-border transactions. The platform’s parent company, Early Warning Services, stated this integration will “enable Zelle to deliver faster and more reliable cross-border money movement.” This development is particularly significant given that Zelle is owned by seven major U.S. banks: Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank, and Wells Fargo.

The timing aligns with explosive growth in stablecoin usage. According to a new TRM Labs report, stablecoin transaction volume has increased 83% in the past year, now accounting for 30% of all crypto transaction volume—approximately $4 trillion total. Angela Ang, TRM’s Head of Policy and Strategic Partnerships for APAC, noted that “as institutions seek to leverage digital assets for use cases like value transfer, interest will continue to surge,” adding that we’re “just at the beginning of the stablecoin adoption curve.”

Beyond these headline moves, other significant institutional crypto developments emerged this week. JPMorgan will begin allowing institutional clients to use Bitcoin and Ethereum as loan collateral through a third-party custody model, though no timeline was provided for extending this capability to retail Chase customers. This represents another step in the gradual integration of digital assets into traditional banking services.

Meanwhile, Mike Novogratz’s Galaxy Digital reported substantial Q3 profits of $505 million, accompanied by a 140% quarter-over-quarter increase in trading volumes. The firm highlighted a $9 billion notional Bitcoin sale it facilitated earlier this year, demonstrating the scale at which institutional crypto trading now operates. These developments collectively illustrate the accelerating convergence between traditional financial services and digital asset infrastructure.