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Remitting it Forward

Firm to combine asset, wealth and consumer banking into one unit

Goldman Sachs Reorganization 

Coinbase, Google Cloud, MinePlex among deals

Crypto Still Has Fans...And Deals

Run on digital assets leads platforms to freeze user accounts, including withdrawals. Bankruptcy looms. 

The Big Chill in Crypto

BlockFi's technology platform connects digital asset markets for traditional financial institutions to enable them to integrate securities execution, margining, short and reporting. providing credit services to markets with limited access to simple products like a savings account. BlockFi sets itself apart from other cryptoasset service providers by pairing market-leading rates with institutional-quality benefits. 


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BlockFi

401(k) provider Fidelity aid it would give 23,000 employers the option to have employees add bitcoin and other crypto assets to their retirement savings.

Redefining Risk: Crypto and Retirement Savings

London financial services firm Ebury signed a deal to acquire Brazilian FinTech Bexs in a move to broaden Ebury’s offerings of global money transfer solutions for small- to medium-enterprises (SMEs).

London FinTech Ebury Expands Global Footprint with Bexs Acquisition

Swiss provider of banking software Temenos has launched ESG Investing-as-a-service, helping banks and wealth managers make use of sustainable investing. 

Temenos launches ESG Investing-as-a-Service

Younger banking customers are making a decided move away from megabanks like Bank of America, JPMorgan Chase, and Wells Fargo for digital banks and fintech like Chime, PayPal, and Square, according to research done by Cornerstone Advisors.

Market Share is Moving to FinTechs and Digital Banks

Crypto lender Voyager filed for Chapter 11 bankruptcy protection a week after halting withdrawals and two weeks after getting a $485 million bailout from FTX founder Sam Bankman-Fried’s firm Alameda Research.

Alameda Research now stands as Voyager’s biggest creditor with an outstanding loan of $75 million, according to multiple reports on Wednesday (July 6).

Voyager and its two affiliates, Voyager Digital LLC and Voyager Digital Holdings, filed Chapter 11 voluntarily in the U.S. Bankruptcy Court of the Southern District of New York to restructure and “create a path” to resume operations and “return value to customers,” according to a press release. 

Crypto Lender Voyager Seeks Chapter 11 Protection

The co-founders of failed crypto hedge fund Three Arrows Capital appear to be on the run from creditors, according to court documents recently filed in New York.

Founders of Bankrupt Crypto Hedge Fund Three Arrows Capital Go Missing

Celsius Network, a large cryptocurrency lender filed for bankruptcy after freezing customer assets that led to increased customer redemptions following a decline in cryptocurrency values.

Crypto Lender Celsius Files for Bankruptcy 

Forsage claimed to be a decentralized smart contract platform built on the Ethereum, Tron, and Binance blockchains allowing retail investors to earn profits by recruiting other investors.

SEC charges 11 people in alleged $300 million crypto Ponzi scheme

Global Payments announced plans to acquire EVO Payments today. EVO Payments provides payment technology and acquiring services solutions. 

Global Payments to buy EVO Payments for $4 billion 

The ex-CEO of bankrupt crypto trading firm FTX was arrested in the Bahamas after the U.S. Attorney for the Southern District of New York shared a sealed indictment with the Bahamian government. Sam Bankman-Fried is expected to be extradited to the United States.

FTX founder Sam Bankman-Fried arrested in the Bahamas after U.S. files criminal charges

Recent figures compiled by M&A and corporate finance firm Hampleton Partners show a 46 percent increase in fintech deals in the first half of 2022 compared with 2021 and a 70 percent increase compared with the first half of 2019 pre-pandemic deals.  Steady valuation, the availability of capital, and high-growth fintech companies make the fintech M&A market attractive. 

Fintech M&A on the rise as valuations crumble

AltFi revealed this morning that Francesco Simoneschi, CEO of Truelayer, alerted staff that their headcount would be cut by 10%. Truelayer is not the only fintech facing significant employee cuts, in May BNPL giant Klarna announced plans to lay off 10% of their staff, trading app Robinhood axed 23% of their staff last month due to the economic downturn, and e-commerce platform ClearCo laid off 125 employees, 25% of their staff in August.

Truelayer to axe 10% of staff – AltFi

Fintechs like Chime, Current, N26, Level, Step, Varo and Moven are partnering with banks in an effort to make younger consumers comfortable doing all their banking online

Most Fintechs Partner with Banks

Nasdaq Digital Assets will begin by developing a cryptocurrency custody solution that will bring together the “best attributes of hot and cold crypto wallets”

Nasdaq to Launch Crypto Custody Service

According to Crunchbase data, M&A activity targeting VC-backed crypto startups hit an all-time high in the first quarter of the year when 16 were announced. However, deal pace has reverted to barely a trickle, with just seven deals in the last nearly two full quarters.

Crypto M&A Slows to a Crawl

Headlines about losses and layoffs in FinTech are gathering to suggest market change through consolidation and merger. This year is seeing a big adjustment as FinTechs are experiencing a recession losing $850bn in value in the past year and laying off 7,300 staff between April and October 2022.  All technology sectors have been impacted in 2022 by the recession and contraction of spending, but FinTech is particularly vulnerable due to soaring costs, decreased transaction fee revenue, and declines in retail investing volumes. Global FinTech M&A saw a sharp rise in the first half of 2022 and will see massive consolidation through 2022 and 2023.

The FinTech Bloodbath

Crypto lending platform BlockFi announced it was halting withdrawals Thursday night in the wake of the collapse of crypto exchange FTX. BlockFi said that due to the “lack of clarity” regarding FTX and Alameda, “we are not able to operate business as usual,” and that until there is “further clarity, we are limiting platform activity, including pausing client withdrawals.” The company asked clients not to deposit into BlockFi Wallet or Interest Accounts at this time, and said it will share more specifics “as soon as possible,” though it warned it likely would communicate “less frequently” than what its clients and stakeholders are used to.

Crypto lender BlockFi pauses withdrawals in wake of FTX’s collapse 

The former head of the Federal Deposit Insurance Corporation (FDIC), Sheila Bair, in speaking to the Financial Times said that rather than waiting for new laws, regulators need to join forces and use existing laws to protect investors in the wake of FTX’s failure.
Calls for crypto regulations have grown louder in recent weeks following the collapse of the cryptocurrency exchange FTX, which filed for bankruptcy on Nov. 11, kicking off a digital asset market crisis. 


Ex-FDIC Head: People ‘Getting Hurt’ by Lack of Crypto Rules

Cryptocurrency exchange's attempts to reassure markets about their stability are having little effect on jittery users, who keep pulling funds from the venues. Platforms from Binance to Crypto.com have made full or partial disclosures outlining their assets since FTX.com unraveled last week. Yet clients' stampede for the exits has persisted, with exchange reserves of bitcoin, ether and stablecoins falling sharply.

After FTX, crypto exchanges struggle to convince customers they're safe

Banks looking to boost their digital capabilities reportedly may be taking a closer look at acquisitions of FinTechs as the valuations of FinTechs have fallen 70% this year.  The decline in FinTech valuations has been driven by the economic downturn, rising interest rates, and lower investor confidence after the collapse of the cryptocurrency exchange FTX. In addition, banks earnings have increased as their lending business benefits from rising interest rates, and it’s easier for banks to buy FinTechs than to merge with other banks because the latter involves more regulatory scrutiny.

FinTech Winter May Lead Banks to Increase Acquisitions 

Robinhood’s crypto segment faces risks ‘given substantial price declines and material deterioration in investor confidence,’ analyst says. Robinhood had cut costs and made its platform more attractive to active traders. But he said uncertainty surrounding the stock market next year, as well as the cratering of the crypto market, made for a “mixed outlook” on the company.  Analysts expect Robinhood’s crypto-trading revenue to drop at least 50% for both this year and next year and the shockwaves from FTX’s collapse could ripple through to Robinhood in a variety of ways. 

FTX collapse isn’t just Coinbase’s problem — it’s also Robinhood’s 

Small to midsized businesses (SMBs) are investing in new tools, including payment solutions to explore the size and scale of the opportunity for SMB retail and how merchants can drive growth with new payment technologies. Retailers are chasing of seamless payment experiences including buy now, pay later and considering new payment options for payment technologies that can streamline payment experience and help achieve scale for their businesses.  

Small Business Survival May Hinge on Digital Payment Features

Shares of Silvergate declined 42.7% on Thursday after the crypto-focused bank released preliminary fourth-quarter results that showed massive customer withdrawals. Total deposits from digital asset customers declined to $3.8 billion from $11.9 billion at the end of the third quarter, a decline of roughly 68% as crypto exchange FTX, a Silvergate customer, collapsed in scandal, raising questions about the stability of the digital asset industry. At the end of December, $150 million of the bank’s deposits were held by customers who had filed bankruptcy, Silvergate said.

Silvergate Capital tanks more than 40% after crypto bank discloses massive fourth-quarter withdrawals

The Bahamas’ Securities Commission seized $3.5 billion from FTX just after the company’s bankruptcy. The regulator announced the seizure Thursday (Dec. 29), saying the cryptocurrency funds were moved from FTX Digital Markets (FTXDM) — the company’s subsidiary in the Bahamas — and transferred to the commission’s digital wallets. The commission said it decided to move the funds after hearing from FTX founder and former CEO Sam Bankman-Fried about cyberattacks on FTXDM.

Bahamas Securities Commission Reports Seizing $3.5B in FTX Assets

Chinese billionaire and founder of Ant Group Jack Ma will be giving up his control of the fintech firm. Ant Group’s shareholders have agreed to carry out a restructuring process that will see Ma give up most of his voting rights, according to the statement.

Jack Ma to cede control of Chinese fintech Ant Group

Moneyhub, founded in 2014, creates software for open banking, open finance, and open data applications announced it received an additional $18.2 million (£15 million) investment from savings and retirement business Phoenix Group. The funding round is a follow-on to the recent $48.6 million (£40 million) Moneyhub received in October 2022 which was led by Legal & General and Lloyds Banking Group led that round, contributing $42.4 million (£35 million), and Shawbrook Bank. Moneyhub’s total funding now adds up to $81.6 million.. 

Moneyhub Raises $18.2 Million, Completing $66.8 Million Funding Round

Genesis Trading, a crypto lender, will eliminate 60 positions, or 30% of its workforce, as it attempts to economize and stave off a bankruptcy filing. Genesis was hit hard by the collapse of one of its clients, crypto exchange FTX, freezing redemptions shortly after FTX filed for bankruptcy protection in November 2022. Barry Silbert’s Digital Capital Group is Genesis’ parent company, and has been under fire from prominent investors over the length of the withdrawal freeze and a lack of action from executives.

Crypto lender Genesis Trading lays off 30% of workforce

Crypto.com, the Singapore-based crypto wallet and payments firm, today announced a 20% reduction in the size of its global workforce during a week when Coinbase said it would reduce its headcount by the same percentage and Blockchain.com also announced layoffs. 

Crypto.com cuts 20% of workforce amid sector-wide layoffs

Gemini Trust, the digital-asset firm founded by billionaire twins Tyler and Cameron Winklevoss, announced another 10% reduction in its workforce. The company previously announced the firing of 10% of its staff in June after the collapses of the Terra stablecoin ecosystem and Three Arrows Capital hedge fund sent token prices tumbling. In November, Gemini customers lost access to their money when Genesis Global Capital froze redemptions from a lending product the companies offered jointly. Genesis sought bankruptcy protection last week. The Winklevoss brothers have been waging a public battle with Barry Silbert — whose Digital Currency Group is the parent of Genesis.

Winklevoss twins’ Gemini Trust cuts more jobs amid corporate feuding and a broader crypto industry slump

The Consumer Financial Protection Bureau has proposed a new rule to ban excessive credit card late fees. Congress banned excessive fees in 2009, but the Federal Reserve Board of Governors issued actions to circumvent the law, the CFPB said.  The CFPB rule proposed Wednesday would lower the amount consumers can owe for late fees under the immunity provision to $8 from as much as $41, end the automatic annual inflation adjustment for the provision and cap late fees at 25% of the minimum payment owed by the cardholder. The new rule could potentially reduce excessive late fees by as much as $9 billion per year.

Consumer Financial Protection Bureau targets excessive credit card fees in new rule proposal

Payment process Fidelity National Information Services, known as FIS, said Monday that it will spin off its merchant services business to create two separate publicly-traded companies with the new entity reclaiming its former name, Worldpay.  FIS is making the major moves to break apart the company and squeeze savings out of the operations after two activist shareholders, D.E. Shaw and Jana Partners, made investments in the company last year. Worldpay will be more likely to pursue acquisitions as a result of the plan to spin off the company. 

FIS plans to spin off merchant unit

Nomura's digital assets subsidiary, Laser Digital, has invested in Infinity, a decentralized finance (DeFi) protocol for institutional lending and borrowing. Infinity offers an interest rate protocol that forms the basis for benchmark rates and institutional-grade lending, borrowing, and risk management in DeFi. Infinity’s wholesale exchange provides inter-exchange clearing, fixed and floating rate markets, as well as enterprise-grade risk management utilising hybrid on-chain/off-chain infrastructures.

Nomura invests in 'Hybrid Finance' startup Infinity

Cryptocurrency prices fell on Friday as investors weighed the latest financial woes at Silvergate Capital and assessed what a potential bankruptcy at the crypto bank could mean for the broader crypto industry.The drop came late Thursday night, hours after several crypto companies said they’d stopped accepting or initiating payments to or from Silvergate – including Coinbase, Galaxy Digital, Circle, Paxos and Bitstamp. Silvergate, which has become the go-to bank for cryptocurrency businesses, gave notice Wednesday that it won’t meet an extended deadline to file its annual report and warned it may not be able to operate for another 12 months. 

Bitcoin, ether slide on Friday as investors weigh potential fallout from Silvergate woes

The U.S. cryptocurrency firm Circle’s USD Coin lost its dollar peg and fell to a record low Saturday morning. The company revealed it has nearly 8% of its $40 billion in reserves tied up at the collapsed lender Silicon Valley Bank. USDC is designed to trade at $1, but it fell below 87 cents on Saturday, according to data from CoinDesk. In a tweet Friday, Circle said it has $3.3 billion in remaining reserves at SVB. The company called for the continuity of the bank and said it will follow guidance from regulators.

Stablecoin USDC breaks dollar peg after firm reveals it has $3.3 billion in SVB exposure

Half of all fintech firms have put a stop to hiring staff in 2023 because of the challenging economic climate, according to a major new report. During the first half of 2022, over 4,000 fintech employees lost their roles across 45 companies, from mortgage lenders to firms processing digital payments, further highlighting the impact challenging financial times are having on a sector.  With a global recession looming, the development of financial software and the evolution of fintech innovations will have a larger impact on consumers than ever in 2023. 

Half of all fintech firms introduce hiring freeze

The New Jersey-based regional bank has a higher profile after a trio of recent bank collapses – and will likely face added regulatory scrutiny. Cross River Bank – a venture capital-backed, FDIC-insured regional bank in New Jersey that’s part financial institution and part fintech – has an increased profile in crypto circles thanks to the collapses of crypto-friendly Silvergate Bank, Silicon Valley Bank and Signature Bank in under a week. 

What Is Cross River Bank, USDC Stablecoin Issuer Circle’s New Partner?

eToro recently completed a $250 million funding round at a valuation of $3.5 billion. Investors include ION Group, SoftBank Vision Fund 2, Velvet Sea Ventures, and a number of existing investors. This funding stems from an Advance Investment Agreement (AIA) which eToro entered into in February 2021 as part of its proposed SPAC transaction.

eToro raises $250 million at $3.5 billion valuation

Factris, an Amsterdam-based tech-power financing solution for SMEs, has received further momentum thanks to a €50 million funding line from global investment business Aegon Asset Management.

Factris lands €50 million funding line from Aegon Asset Management

U.S.-based savings and investing startup Acorns has acquired London-based GoHenry, a startup focused on providing money management and financial education services to 6- to18-year-olds in an all-equity deal, the two companies announced today.

Acorns acquires UK’s GoHenry, a fintech focused on 6- to 18-year-olds

Remittance outfit Sendwave has launched a banking product for migrants in the United States. Sendwave, which is owned by London-based fintech Zepz, is offering select customers a FDIC-insured bank account with an accompanying debit card.


Sendwave launches bank account for migrants

The U.S. Security and Exchange Commission’s (SEC) case against Ripple, who are accused of trading securities with the question: are cryptocurrencies securities? Since then, the SEC has issued warrants against Binance and Coinbase which essentially all comes down to what the US refers to as the Howey Test.  In separate cases against crypto exchanges Binance and Coinbase, it added 16 more digital assets to its list of likely securities but rather than going after them, it went after the exchanges that provide a venue for them to trade. By not registering as an exchange or broker, Coinbase is deemed in violation of such laws.

Why the SEC is chasing Coinbase, Binance, Ripple and more

On June 6th the Securities and Exchange Commission (sec) sued Coinbase, the country’s largest crypto exchange, for failing to register as a broker, exchange or clearinghouse of securities. When markets opened, Coinbase’s share price dropped by a fifth. The day before the sec had sued Binance, the world’s largest crypto exchange—alleging both that it offered securities-trading services without the necessary registrations, and that it had placed customer funds in a trading outfit owned by its boss, Changpeng Zhao. Binance rejected all the allegations and said it would “vigorously defend” itself.

Regulators put the future of America’s crypto industry in doubt

Asset management giant Fidelity is close to submitting its own filing for a spot bitcoin exchange-traded fund, joining a long list of issuers keen to be first to market with such a product. A source familiar with the firm’s plans says that it could submit its filing as soon as Tuesday, following the lead of asset management giant BlackRock. BlackRock’s June 15 filing has been followed by other asset managers looking to launch their own spot bitcoin funds including Invesco, WisdomTree and Bitwise.



Fidelity preparing to submit spot bitcoin ETF filing: Source

A recent article was quoted as saying "that Wall Street is coming for crypto, whether early believers like it or not." Something has changed, and maybe the biggest change is that treasury managers want to use cryptocurrencies. If the customer wants it, then the big banks have to service it and there’s the rub. The big banks have stirred and incorporated digital assets, and specifically cryptocurrencies, into their remit. And then you know that cryptocurrencies are going mainstream when Standard and Poor’s (S&P) start to rate them. They don’t do that today, but they are moving that way. 

The moment you realise crypto has gone mainstream

A TD Cowen analyst views MicroStrategy as “an attractive vehicle for investors looking to gain bitcoin exposure." TD Cowen analyst Lance Vitanza, who initiated coverage on the Michael Saylor-led firm last Wednesday with an outperform rating, praised the company for its “hybrid corporate strategy.” MicroStrategy is known for converting all of its earnings from its core software intelligence business into bitcoin. This approach represents a “paradigm shift,” he wrote in a note to investors.

Bullish MicroStrategy Analysts Raise Price Targets Ahead of Q2 Earnings

Corporate spend management giant Brex has laid off 282 people (20% of its workforce) and revealed that its COO and CTO are leaving their roles.In a message to employees, shared on the company's blog, co-CEO Pedro Franceschi says the job cuts as part of a restructuring to become a "high-velocity company". Franceschi says the axe is being wielded following a hard look at the company's structure that will result in fewer management layers.

Brex axes 20% of staff

Temenos shares were down over 6% on Friday after closing over 28% lower on Thursday.
The Swiss software company said its board of directors “fundamentally refutes” a report by short-seller Hindenburg Research. Short-seller Hindenburg Research made headlines after accusing Indian conglomerate Adani of stock manipulation and accounting fraud in early 2023.

Hindenburg’s latest short target Temenos rejects allegations as share price tumbles

In the six months following its groundbreaking launch in July 2023, FedNow has emerged as a transformative force in real-time payments, marking a significant departure from the traditional Automated Clearing House (ACH) system.  This shift signifies a pivotal moment in banking innovation, offering instantaneous transaction processing that aligns with the modern financial transaction demands.

How FedNow is Shaping Payments Since its Groundbreaking Launch

The Federal Reserve is stressing the importance of fintechs and core providers for the future expansion of its new instant payments system FedNow. The Federal Reserve won’t provide fintechs with direct access to its new instant payments system FedNow, but it’s still courting their participation in the new real-time ecosystem. 

Fintechs can help the Fed see what’s on the horizon for the new faster payment system and allow the new real-time payments services to be easier to use, said Mollie Markham, a Federal Reserve Bank of Chicago industry specialist who works with nonbanks. Fintechs can also assist the Fed in providing services that make the most of FedNow’s data-rich capabilities, she said during a conference this month.

Fed courts nonbanks for FedNow growth

The Consumer Financial Protection Bureau declared on Wednesday that customers of the burgeoning buy now, pay later industry have the same federal protections as users of credit cards. The agency unveiled what it called an “interpretive rule” that deemed BNPL lenders essentially the same as traditional credit card providers under the decades-old Truth in Lending Act. The BNPL market is dominated by fintech firms like Affirm, Klarna and PayPal.

CFPB says buy now, pay later firms must comply with U.S. credit card laws

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