The Conference of State Bank Supervisors filed suit against the OCC over the agency’s proposal to issue special-purpose banking licenses to fintech firms; Recode reports on Apple’s rumored launch of an iPhone-to-iPhone digital money-transfer service to rival Paypal’s Venmo; Stock trading app Robinhood raised $110 million, valuing the firm at over $1 billion; the WSJ writes on the rise of financial mapmaking and advanced network analytics that provides financial firms and regulators new tools to spot crises; and House Financial Services Vice Chairman Patrick McHenry opines on the CFPB’s Project Catalyst.
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 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.
In the world of financial innovation, DLT is a truly global phenomenon.
The White House published a white paper outlining its fintech policy objectives; more state regulators and national banking groups expressed concerns to the OCC about its decision to consider granting “fintech charters;” payments and money transfer firm Dwolla raised nearly $7 million in new funding; Bitfury and Credit China Fintech founded a new global blockchain advocacy organization; and Gene Ludwig shared his thoughts on AI and the future of finance in a podcast interview with Arthur Levitt.
Senators Sherrod Brown and Jeff Merkley questioned the OCC’s authority to consider national bank charter applications from fintech firms; both DTCC and SWIFT are developing new blockchain initiatives; China’s state-backed banks are joining Alipay and Tencent in the battle for Chinese digital payments market share; and Funding Circle announced it secured $100 million in new equity funding.