U.S. Fed governor talks banks and fintech; Synchrony buys $6B in PayPal loans; U.S. banks set up a vendor management JV; U.S. banks finally get real-time payments; Coinbase rolls out custodial services; and Kabbage gets $200M from Credit Suisse. Plus, what’s the Big Idea with global regulators and ICOs?
The CFPB outlined new consumer data-sharing principles; J.P. Morgan Chase is buying WePay; IBM and J.P. Morgan are both working DLT cross-border payments projects; you can now use Venmo to pay online; and PayPal’s market cap is now bigger than that of AmEx.
SoFi has withdrawn its ILC application and the ICBA wants a moratorium on all ILC applications; a DLT PoC shows its potential for global financial services; Hyatt announced it experienced a data breach that exposed customer payment info; China’s government shows its heavy-handedness (again…); and Russia will begin issuing “CryptoRubles” on a blockchain.
The NYDFS sued the OCC over its proposed “fintech charter,” while the CSBS announced a new initiative to “modernize” state regulation of fintech firms; the CFTC created an internal fintech lab to engage with new products and innovators; SoFi is expanding into the wealth management market; the DTCC produced a new white paper on cloud-based financial markets infrastructure; and IBM is working to build “the world’s first securities lending blockchain platform.”
The SEC shortened to two days from three the settlement cycle for broker-dealer transactions; IBM is working with Swiss financial exchange operator SIX on a cybersecurity compliance tool, and with Canadian banks on digital identification management; global software and IT firm SAP joined the Hyperledger project; and two OnDeck executives penned an op-ed advocating for regulatory change.
The OCC released new guidance on how “fintech charter” applicants will be evaluated; the NYDFS appears to want greater authority over fintech firms; SWIFT announced new technology-enabled compliance offerings; the SEC denied the Winklevoss twins’ application to create a bitcoin ETF; Dubai selected IBM to help it build the world’s first “blockchain-powered government;” 40 blockchain firms formed a defensive patent coalition; and Euronet topped Ant Financial’s $880M bid for MoneyGram.