Revolut & Stripe make strategic moves as private markets heat up ๐ค๐ฅ; Tether exits Euro Stablecoin market amid EU regulatory pressures ๐ช๐ช๐บ; Charles Schwab's Crypto Pivot ๐๐
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The ultimate list of resources for building and scaling billion-dollar companies ๐ฆ [1,500+ pages of knowledge, data and advice to launch & scale your next unicorn startup in 2025]
AI 100: Top Artificial Intelligence Startups of 2024 ๐ค๐ธ [these companies raised $28B already. Find whose backing them, unlock their exclusive pitch decks & learn from the best ๐]
Stablecoin market surges to a whopping $190 billion as major players are embracing stables ๐ณ๐ฅ [holistic recap of the latest market movements, what they mean & whatโs next + some bonus reads inside]
FinTech collapse leads to major banking lawsuit over missing customer funds ๐ณ๐ฆ [holistic recap of the situation, why it matters & whatโs next for FinTech & BaaS]
Klarna's return to profitability sets stage for landmark US IPO ๐ธ๐บ๐ธ [quick look at their latest numbers, what they mean & whatโs next + bonus dive into Klarnaโs biggest public competitor & why we should start thinking more about M&As]
HSBC enters the UK Buy Now, Pay Later market ๐๐ณ [whatโs the rationale behind & why it matters + bonus deep dives into HSBC & co inside]
RIP NFTs? Kraken is shutting down its NFT Marketplace ๐ชฆ๐ผ๏ธ [what itโs all about, what it tells us & whatโs next + bonus deep dive into Krakenโs biggest competitor]
Former Revolut & Ledger execs secure additional ยฃ13.3M as crypto market shows signs of recovery ๐ช๐ค [whatโs the USP here & why itโs worth watching + bonus 1,500+ page playbook on how to build & scale your next unicorn in 2025]
As for today, here are the 3 incredible FinTech stories that were transforming the world of financial technology as we know it. This was yet another big week in the Finance 2.0 space so make sure to check all the above stories.
FinTech giants Revolut and Stripe make strategic moves as private markets heat up ๐ค๐ฅ
The news ๐๏ธ FinTech giants Revolut and Stripe are executing major share transactions that signal evolving strategies in the private markets.
Revolut has facilitated a share sale worth between $300-500 million for early investors, while Stripe is conducting a tender offer at a $70 billion valuation.
Letโs take a quick look at this and see why it matters.
More on this ๐ Revolut's transaction, which includes approximately $100 million in shares sold to Goldman Sachs' GS 0.00%โ growth equity unit, maintains the company's $45 billion valuation. This follows an August sale where employees sold $500 million worth of shares to investors including Coatue, D1 Capital Partners, and Tiger Global.
The UK-based FinTech recently celebrated reaching 50 million global customers and secured its long-awaited UK banking license in July, albeit with certain restrictions.
ICYMI: Revolut hits 50M users milestone, secures UK trading license in major growth push ๐๐ฆ [what itโs all about, why it matters & whatโs next for Revolut + a deep dive into its biggest global competitor]
Meanwhile, Stripe is offering shares at $27.51 each, maintaining its previous $70 billion valuation from earlier this year. The tender offer, expected to involve hundreds of millions of dollars in transactions, allows former employees and some current investors to sell their shares by mid-December.
ICYMI: Stripe aims to revolutionize cross-border commerce in Asia with AI ๐ณ๐ค [what the USP here & whatโs next + a bonus dive into Stripe et al.]
โ๏ธ THE TAKEAWAY
Whatโs next? ๐ค At the core, these developments suggest a maturing FinTech sector where private companies provide liquidity to their employees and early backers while maintaining strategic control over their public listing timelines. More importantly, these transactions demonstrate that major private investors remain confident in leading FinTech companies despite market uncertainties. And this is especially important for Revolut, whose successful share sales and banking license acquisition position it for aggressive global expansion, including planned mortgage offerings in European markets and potential US banking operations. Looking ahead, we can expect more private market liquidity events as other FinTech unicorns seek to provide investor and employee exit opportunities without rushing to IPO. FinTech is so back ๐
ICYMI:
Bye EURT ๐: Tether exits Euro Stablecoin market amid EU regulatory pressures ๐ช๐ช๐บ
The news ๐๏ธ Tether, the world's largest stablecoin issuer (& one of the most profitable tech companies right now), has announced the discontinuation of its euro-backed stablecoin EURT, marking another shift in the European cryptocurrency landscape.
The decision comes as the company grapples with the European Union's Markets in Crypto-Assets (MiCA) regulation, which imposes stringent requirements on stablecoin issuers.
Letโs take a quick look at this.
More on this ๐ The company has set a November 25, 2025 deadline for EURT holders to redeem their tokens, having already ceased new issuance since 2022. EURT's market capitalization has declined to approximately $27-38 million, a fraction of its peak of over $500 million, and significantly smaller than Tether's flagship USDT stablecoin, which commands a market cap of $132 billion.
At the heart of Tether's decision lies its concerns about MiCA's regulatory framework, particularly the requirement for stablecoin issuers to maintain substantial reserves in bank accounts - 30% for standard stablecoins and up to 60% for larger ones.
Tether CEO Paolo Ardoino has expressed skepticism about these requirements, suggesting they could introduce systemic risks to both banks and digital assets. The company views holding reserves in bank deposits as potentially riskier and less profitable than investing in government securities.
Rather than pursuing MiCA compliance directly, Tether is pivoting its European strategy toward its Hadron platform, which will support MiCA-compliant stablecoins issued by other entities. The company has invested in Quantoz Payments, which plans to issue compliant EURQ and USDQ stablecoins using Tether's technology.
โ๏ธ THE TAKEAWAY
Whatโs next? ๐ค Looking ahead, this development signals several important trends for the cryptocurrency industry. First, it suggests a growing divide between traditional stablecoin issuers and regulatory frameworks, potentially leading to a two-tier market: one comprised of fully compliant, bank-integrated stablecoins (think USDC here), and another operating outside direct regulatory oversight. This could result in decreased liquidity in European crypto markets as some major players reduce their presence. The situation may also accelerate the development of alternative stablecoin models that can balance regulatory compliance with operational efficiency. Moreover, Tether's investment in Hadron and partnership with Quantoz indicates a strategic shift toward providing infrastructure rather than direct stablecoin issuance in highly regulated markets. Zooming out, this move also represents a critical moment in the industry's maturation. As regulatory frameworks like MiCA become more established, companies must either adapt their business models or find creative ways to participate in regulated markets through partnerships and technological solutions. This could lead to increased institutionalization of the crypto sector in Europe, though potentially at the cost of reduced market diversity and innovation. Interesting times ahead ๐ฟ
ICYMI: Stablecoin market surges to a whopping $190 billion as major players are embracing stables ๐ณ๐ฅ [holistic recap of the latest market movements, what they mean & whatโs next + some bonus reads inside]
Charles Schwab's Crypto Pivot ๐๐
The news ๐๏ธ Charles Schwab SCHW 0.00%โ , one of America's largest financial services firms, is positioning itself for a major move into cryptocurrency trading, pending anticipated regulatory changes.
Rick Wurster, Schwab's incoming CEO who takes the helm in January 2025, has indicated the company is actively preparing to offer spot cryptocurrency trading to its extensive client base once the regulatory environment becomes more supportive.
Letโs take a quick look at this and see why it matters.
More on this ๐ The firm currently provides crypto exposure through indirect means, including crypto-linked ETFs, futures contracts, and options on certain Bitcoin funds. Schwab also maintains a stake in the institutional crypto exchange EDX Markets, alongside other major players like Citadel Securities and Fidelity Digital Assets.
Wurster's vision includes "Schwabizing" the crypto market by reducing spreads and commissions, potentially disrupting the current fee structure in crypto trading. This approach aligns with Schwab's historical focus on making investing more accessible and cost-effective for retail investors.
However, the impact of this move might be tempered by Schwab's demographic profile. According to their 2023 RIA benchmarking study, 56% of their clients are 60 or older, with only 13% under 40 โ contrasting sharply with crypto-friendly platforms like Robinhood HOOD 0.00%โ, whose average user is 32 years old ๐
For context, crypto transactions account for over 27% of Robinhood's transaction-based revenues.
ICYMI: Robinhood's mixed Q3: growing pains cloud near-term outlook ๐ธ๐ [unpacking the most important numbers & what they mean & how growing pains cloud trading giantโs near-term outlook]
โ๏ธ THE TAKEAWAY
Whatโs next? ๐ค At the core, Schwab's entry into direct crypto trading is all about the mainstream adoption of digital assets. As one of the largest financial institutions in the U.S., their move could influence other traditional financial firms to follow suit. The timing is particularly interesting given that BTC ETF inflows have already surpassed $30 billion in less than 11 months. Looking at the big picture, the convergence of traditional finance and crypto should accelerate if regulatory changes materialize as expected. This should lead to more competitive pricing in crypto trading, enhanced legitimacy for cryptocurrencies as an asset class, increased institutional adoption, and better integration of crypto assets into traditional portfolio management. All in all, while Schwab might be late to the direct crypto trading party, their significant resources, established client base, and reputation for cost-effective services could make them a formidable player in the space once they fully commit to the market.
ICYMI: Schwab's wealth management transformation signals a new growth chapter despite rate headwinds ๐๐ฐ [breaking down the latest numbers, what they mean & whether this finance giant is worth your time and money in 2024 & beyond]
๐ What else Iโm watching
Wise Ordered to Fix AML Controls by EU Regulators ๐จ Wise, the money transfer giant, was directed by European regulators to implement a remediation plan due to anti-money laundering (AML) control issues. A 2022 review by the National Bank of Belgium found that Wise lacked proof of address for hundreds of thousands of customers. The company was required to contact these customers and freeze accounts if documentation wasn't provided. Wise has also faced AML fines in other regions, including a $360,000 penalty in Abu Dhabi. The firm states it has fully implemented the Belgian regulator's recommendations. ICYMI: FinTech giant Wise is a trillion-dollar money mover in the making ๐ณ๐ธ [unpacking the most important H1 FY25 numbers, what they mean & whatโs next for Wise]
dLocal Becomes PIX Payment Initiation Service Provider ๐ธ dLocal DLO 0.00%โ has been certified as a Payment Initiation Service Provider (PISP) by Brazil's Central Bank, allowing it to process Pix payments directly within the country's Open Finance framework. This eliminates the need for users to switch to banking apps during transactions, simplifying the payment process. The certification follows dLocal's receipt of a Central Bank license in July 2023 and aims to enhance the efficiency of digital transactions in Brazil. Pix, an instant payment system, enables quick fund transfers with lower operational costs, benefiting both users and businesses. ICYMI: Emerging markets payments pioneer dLocal shows resilience amid growing pains ๐ช๐ณ [unpacking the most important numbers, what they mean & whatโs next for dLocal]
Mollie and PayPal Partner to Enhance European Payment Solutions ๐ค Mollie and PayPal PYPL 0.00%โ have partnered to improve payment options for European marketplaces. The collaboration integrates PayPal into Mollie's platform, simplifying the payment process and eliminating the need for separate integrations. Mollie Connect manages technical setups, allowing marketplaces to focus on growth. The partnership supports various payment methods, including BNPL options and gift card acceptance, enhancing marketplace monetization and operational efficiency. ICYMI: PayPalโs Q3 2024: profitable evolution from growth story to value play ๐ฐ๐ [breaking down the most important Q3 2024 numbers, what they mean & whatโs next + bonus reads on PayPal & co]
๐ธ Following the Money
Japanese fintech startup Habitto has raised $11.7M in a Series A funding round, aimed at supporting the expansion of its digital banking platform.
Construction industry software firm Constrafor has raised $264M in a Series A round.
Avant Protocol has raised $6.5M in a seed funding round at a $25M valuation. Avant is an Avalanche-based crypto yield protocol that offers a yield-bearing โstable-valueโ token similar to the popular Ethena.
๐ Thatโs it for today! Thank you for reading and have a relaxing Sunday! And if you enjoyed this newsletter, invite your friends and colleagues to sign up:
Thank you as always!