SoFi has withdrawn its ILC application and the ICBA wants a moratorium on all ILC applications; a DLT PoC shows its potential for global financial services; Hyatt announced it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 wants state legislators to prevent online lenders from imposing out-of-state interest rates on in-state borrowers; TransferWise announced “borderless” accounts, allowing users to open multiple accounts in different currencies; Canada’s central bank concluded that DLT technology is not ready to “underpin” the financial system; Singapore’s financial regulator helped launch a new network to connect and foster Southeast Asian fintech innovators; and the R3 consortium raised $107 million.
SoFi intends to apply for an industrial loan company (ILC) charter in June, which, if successful, would make it the first new ILC in over 10 years; Chinese mobile payment giant Alipay partnered with First Data to enter the U.S. market; Citi invested in DLT firm Axoni; and The Economist looks at how data has become “the world’s most valuable resource,” and what that means for those regulating it.
The WSJ writes that Goldman Sachs has made $1B from selling data gained after its purchase of credit bureau TransUnion; China’s Ant Financial plans to expand its DLT initiatives to increase the transparency of and access to its financial services; the ECB said DLT is not mature enough to be part of Europe’s market infrastructure; China may pass restrictive data rules for foreign businesses; and digital savings firm Digit decided to charge for its service.
The Delaware Corporate Law Council proposed amendments to the state’s corporate law to allow for DLT-based stock records; BlackRock plans to rely more on computer models and algorithms in its stock-picking unit; Japan’s financial regulator will officially recognize Bitcoin as a method of payment starting tomorrow; and the NYDFS’s Maria Vullo discussed her opposition to the OCC’s proposed fintech charter in an American Banker interview.
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.