Banks are becoming crypto companies while crypto companies are becoming banks ₿🏦; Shopify is a FinTech company that you should be paying attention to 🚀; Metaverse gone wrong 😬
FinTech is Eating the World, 29 September
Hey Everyone,
And happy Thursday! Yesterday’s issue was hot but today’s - oh, boy… We’re going to look at the monumental shift in finance, or how banks are becoming crypto companies while crypto companies are becoming banks, Shopify that is a FinTech company, and you should be paying attention to it (bonus is a reminder that the future of finance is integrated), and Metaverse gone wrong, or how Walmart screwed up. Let’s jump straight into the fantastic stuff:
Banks are becoming crypto companies while crypto companies are becoming banks ₿🏦
The (breaking?) news 🗞 Cryptocurrency lender Nexo just announced it has taken a stake in a federally-regulated US bank, paving the way for the company to offer banking services to Americans as a licensed institution.
More on this 👉 Founded in 2018, Nexo is one of the leading regulated digital assets institutions with over $4B in assets under management. The company’s products include advanced trading solutions for retail and institutional clients (Nexo Pro and Nexo Prime), aggregation of liquidity from leading venues, tax-efficient asset-backed credit lines, a high-yield Earn Interest product, etc. Nexo reportedly counts 5M+ users across more than 200 countries.
Nexo’s agreement to buy an undisclosed stake in Hulett Bancorp, which owns a little-known bank called Summit National Bank (it holds a federal bank charter with the Office of the Comptroller of the Currency), will allow them to offer a range of new products including checking accounts and crypto-backed loans.
Why is this important? 🤔 This is a huge milestone for Nexo and a landmark move for the industry. More importantly, it’s part of the transformational trend we’ve started to see more and more in Finance. The trend is clear - banks are becoming crypto companies while crypto companies are becoming banks.
Here’s the takeaway: