The SEC announced it will hold a public forum on DLT and digital assets; IBM is working with CULedger on a digital identity blockchain system and signed a deal with the French commercial court; PayPal now offers instantaneous money transfers to U.S. banks; the Basel Committee has warned banks about their exposure to crypto; the U.K. FCA is considering eliminating investment platform exit fees; and micro-investing startup Stash raised $65 million in new funding and rolled out new banking services in partnership with Green Dot Bank.
Thirty-seven community groups called on the FDIC to reject Square’s ILC application; Apple and Goldman Sachs announced their plans to jointly release an iPhone-based credit card; Mizuho clinched support of AliPay and UnionPay for the rollout of its new digital currency platform; Mastercard is working with a domestic partner on a JV to enter the Chinese payments market; the government of Seoul, South Korea set up a $1B investment fund for fintech and blockchain startups; and SoFi is expanding its business lines to include investment services and new types of loans.
Twenty-two state AGs challenged the CFPB’s proposed fintech sandbox; the Senate Banking Committee is set to examine financial data collection; JPMorgan Chase introduced its own dollar-backed cryptocurrency; President Trump signed an EO setting aside federal funds for AI projects; IBM won a $700M five-year technology deal with Banco Santander; Ant confirmed its acquisition of WorldFirst; and U.K. challenger bank Starling raised £75M in Series C funding.
The SEC is seeking support from private firms on understanding blockchain; a group of global regulators has launched a global regulator sandbox for cross-border fintech products and services; money transfer service WorldFirst is spinning off its U.S. operations ahead of its acquisition by Ant Financial; IBM completed a pilot test of its blockchain-based trade shipment platform; Stripe raised an additional $100M, reaching a $22.5B valuation; and Lithuania made strides in 2018 as a destination for fintech firms seeking a variety of EU operating licenses.
Kik is expected to challenge the SEC over an ICO enforcement action; Coinbase rolled out crypto institutional services in Asia; Alipay was granted an EU e-money license; Bitcoin ATM startups reported growth; the EU and Japan finalized a data flow agreement; and IBM landed a $260m IT infrastructure deal with the Bank of the Philippine Islands.
The DOJ filed charges for an alleged SEC hack which generated $4.1M in profits; HSBC has used distributed ledger technology to settle over $250B in FX transactions; Square has launched a debit card for businesses; SWIFT has published ‘Pay Later’ API standards for instant loans at point of sale; VC funding for cybersecurity firms topped $5B in 2018; the Canadian government has opened a consultation on open banking; and Fiserv is to acquire First Data for $22B.