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.
The CSBS refiled suit against the OCC; the FDIC is creating an office of innovation; Coinbase was approved to be a NY qualified custodian; Apple CEO Tim Cook decried the “data-industrial complex”; Cathay Pacific and British Airways both disclosed new data breach details; and IBM is acquiring Red Hat for a reported $33B.
Varo won preliminary approval for a US national bank charter; HSBC is reportedly launching a digital bank startup; IBM plans to demonstrate a blockchain-based cross-border payments service in October; British Airways was hacked, exposing customers’ personal and financial information; and U.K. challenger bank Monese raised $60 million in Series B funding.
State groups are not pleased about the OCC’s decision to accept bank charter applications from fintech firms; IBM and Maersk are partnering on a blockchain-based global supply chain management platform; the NYDFS will begin enforcing new cybersecurity regulations next month; the U.K. FCA established a Global Financial Innovation Network; and China’s Bitmain is on track to become the first blockchain-focused company with $10B in annual revenue.
The OCC will begin accepting national bank charter applications from fintechs; the U.S. Treasury released a wide-ranging fintech report; the WSJ found massive manipulation of cryptocurrency markets; IBM and CLS are building a blockchain “app store”; and TechCrunch profiled P2P lending in China.