$45B asset manager adds Bitcoin to its balance sheet 👀; Struggling Binance… 😬; India launches new payment system🇮🇳
Good Morning FinTech. 19/30
Good morning Everyone,
And happy Tuesday! Hope Monday wasn’t harsh for you… Here’s a mix of 3 great stories to get you going today:
$45B asset manager adds Bitcoin to its balance sheet 👀
Improve the BS 💸 GoldenTree Asset Management, a New York-based firm with $45 billion under management, has been adding an undisclosed amount of Bitcoin to its balance sheet, according to a report by The Street.
Another one… 🤷♂️ Run by the founder and Chief Investment Officer Steven Tananbaum, the credit-focused firm company has become the latest Wall Street firm to become involved in the largest cryptocurrency by market value.
✈️ THE TAKEAWAY
Following the money. Again 💸 GoldenTree has traditionally been focused mainly on credit and fixed income strategies, yet it’s clear now that the firm is opening its doors for more speculative investment strategies and looking at crypto as a way to diversify its portfolio. Another sign that GoldenTree is leaning towards crypto markets is that the asset manager is considering hiring investment experts in digital assets.
Struggling Binance… 😬
The news 💥 Brian Brooks, the head of U.S. operations for cryptocurrency exchange Binance has quit after only three months in the position. He confirmed this in his tweet.
Top player 😲 Brooks brought a sterling resume to the position, having served as the federal government's acting controller of the currency under President Donald Trump and as chief legal officer at Coinbase. There were huge expectations that Brooks’ appointment might be critical for Binance in changing direction and strengthening its leadership position in the global crypto market.
The struggles 🤷♂️ Brian Brooks is leaving Binance as it faces numerous regulatory headaches in other parts of the world. Binance.com has faced intense scrutiny this year from regulators in the UK, Germany, Japan, and Hong Kong, among others, over concerns around lax consumer protection and anti-money laundering practices. It appears that there are some strong internal disagreements as to how things should be run.
✈️ THE TAKEAWAY
When stakes are high, vision becomes supercritical. It is now clear that the vision Brian Brooks had for Binance US didn’t align with the one of Binance.com. Given all the regulatory pressure the crypto exchange is facing right now, compliance and aligned leadership are important than ever before. And it’s definitely lacking right now. A lot. It will hence be very interesting to see how Binance will evolve and move forward while facing the current struggles.
India launches new payment system🇮🇳
Launch🇮🇳 The Indian Government has recently announced the launch of e-RUPI, an electronic voucher promoting digital payment solutions.
What is it? 🤔 According to an official statement, it is a QR code or SMS string-based e-voucher, which is delivered to the mobile of the beneficiaries. The users of this one-time payment mechanism will be able to redeem the voucher without a card, digital payments app, or Internet banking access at the service provider. Any government agency and corporation can generate e-RUPI vouchers via their partner banks.
The purpose ✅ The e-RUPI initiative will be one of the programs launched over the next few years to limit touchpoints between the government and the beneficiary and `ensure that the benefits reach its intended beneficiaries in a targeted and leak-proof manner`, according to the statement. The vouchers are person- and purpose-specific, which means that if they are released by the government COVID-19 vaccinations, for instance, then they can be redeemed only for that.
✈️ THE TAKEAWAY
An interesting experiment 🧪 The system was developed by the National Payments Corporation of India (NPCI) on its UPI platform, in collaboration with the Department of Financial Services, the Ministry of Health and Family Welfare, and the National Health Authority. UPI is one of the most advanced and interesting payments innovations globally facilitating the most real-time payments on the planet. e-RUPI appears to be another layer on top of it with a clear cause. Could be a good test and trial for an Indian CBDC? 🤔
🔎 What else I’m watching
SEC wants to control crypto 👀 U.S. Securities and Exchange Commission Chairman Gary Gensler announced that he won’t take a hands-off approach to regulate the crypto markets, citing the need for investor protection.
Mexican IPO on the horizon🇲🇽 Tidjane Thiam’s special-purpose acquisition company (SPAC) is in exclusive talks with Mexican FinTech Credijusto and CIAL Dun & Bradstreet about merging the companies and listing them on the New York Stock Exchange later this year.
Standard Chartered goes crypto 😎 UK-based bank Standard Chartered has announced it will offer cryptocurrency broker services in Ireland through its Zodia Custody subsidiary. How new, much wow…
BOK & CBDC 🇰🇷 The Bank of Korea (BOK) has revealed plans to initiate its central bank digital currency (CBDC) pilot by the end of August 2021. The first phase of the pilot, set to conclude in December 2021, will focus on research and testing of the basic functions of the CBDC, such as creating issuance and redemption of the digital won alongside secret keys and wallet functionality, Fintech Global cited to Regulation Asia.
Plaid pays 👀 Plaid has agreed to pay $58M to resolve consumers' claims that the financial technology company obtained and used bank account credentials and financial information without consent. The US-based company also agreed in the nationwide settlement to change certain business practices, according to filings Thursday in California federal court made by lawyers for consumers. As representatives from the company say, the claims go back to the earliest days of the company and as such, the underlying claims and challenged conduct do not reflect today's Plaid.
💸 Following the Money
Indonesia’s Pintu Exchange raises $35M in extended Series A led by Lightspeed Venture. Funding will go toward hiring efforts, improving Pintu's market position, undertaking educational campaigns, and delivering new products.
ASEAN-based Digital banking challenger BigPay has acquired $100M in funding from South Korea-based SK Group.
National Australia Bank has announced plans to buy Citigroup's local consumer unit for about $882.24M.
UAE-based investment and personal finance platform Sarwa has closed a $15M Series B financing round.
👋 That’s it for today! Thank you for reading and have a productive Tuesday! And if you enjoyed this newsletter, invite your friends and colleagues to sign up:
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