Ripple to buy Circle for $20B? 😳; Robinhood’s blockchain platform will connect European investors to US markets 💶; xAI, Palantir, & TWG Global join forces to transform FinServ with AI 🤖
You're missing out big time... Weekly Recap 🔁
👋 Hey, Linas here! Welcome back to a 🔓 weekly free edition 🔓 of my daily newsletter. Each day, I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it’s the only newsletter you need for all things when Finance meets Tech.
If you’re not a subscriber, here’s what you missed this week:
The Ultimate Beginners Guide to AI 📚🤖 [5,500+ pages of knowledge to transform your understanding from beginner to AI authority]
The Ultimate List of Stablecoin Use Cases 🪙 [discover how stablecoins are quietly revolutionizing finance, business, and daily life across industries]
The AI Strategy Playbook that Builds Billion‑Dollar Moats 💸🤖 [Uncover playbooks and best practices from leading organisations and turn AI hype into bottom‑line dominance]
The Renaissance Platform: Robinhood's transformation from meme stock enabler to financial services powerhouse 😤📱[unpacking the most important numbers, what they mean, see how the FinTech giant transformed from meme stock enabler to financial services powerhouse & what’s next for Robinhood]
Block's Inflection Point: margin strength vs. growth concerns in a critical transition year 📉📈 [deep dive into their Q1 2025 financials, uncovering the most important numbers, what they mean, and what’s next for Block + bonus deep dive into Robinhood & its latest financials]
Fifth Third's homegrown AI Chatbot reaches 87% accuracy, now handles 700+ daily calls 🤖🏦 [how their homegrown AI transformed from a COVID-19 emergency solution to a sophisticated customer service tool, what this tells us about the future + bonus deep dive into AI Playbooks, The Ultimate Beginners Guide to AI, and more inside!]
Revolut embraces Bitcoin's Lightning Era🔥🪙 [what’s the USP here & why it matters + bonus deep dive into Revolut’s 2024 financials & more]
Meta explores stablecoins for cross-border payments 😳🪙 [why it’s a perfect use case & what to expect next + a bonus list of 110+ real-world stablecoin use cases]
AvidXchange goes private in $2.2B deal 🤝🤑 [what does it tell us & what should we expect next]
eToro to go public next week: targets $4 billion valuation in crucial test for FinTech IPO revival 💸🔔 [FinTech is back, why it matters + a bonus deep dive into eToro’s IPO prospectus & more inside!]
The Ultimate List of Resources about AI Agents 🤖 [unlock the power of AI Agents: your gateway to the future of autonomous agentic systems]
As for today, here are the 3 incredible FinTech stories that are changing the world of financial technology as we know it. This was yet another intense week in the financial technology space, so make sure to check all the above stories.
Ripple to buy Circle for $20 billion? 😳🪙
The news 🗞️ Crypto giant Ripple has made a strategic move to acquire Circle, the issuer of USDC, the world's second-largest stablecoin with a market capitalization of approximately $61 billion.
According to reports from multiple sources, Ripple initially offered between $4-5 billion, which Circle rejected as insufficient. More recent reports suggest Ripple may have increased its offer to as much as $10 billion, though neither company has officially confirmed these figures 👀
Let’s take a quick look at this, understand what it’s all about, and see what it would mean for the future if this M&A were to actually happen.
More on this 👉 This acquisition attempt follows Ripple's $1.25 billion purchase of prime brokerage Hidden Road and represents a significant shift in Ripple's strategy. After years of focusing primarily on its XRP token and cross-border payment solutions, the company appears to be aggressively expanding into the stablecoin market, where its own RLUSD has reached a modest $317 million market cap.
Circle, meanwhile, is preparing for an initial public offering on the New York Stock Exchange under the ticker "CRCL," with JPMorgan and Citigroup leading the process. The company posted $1.67 billion in revenues in 2024, earning $156 million in profit. Despite paying 60% of its revenues to distributors, particularly Coinbase COIN 0.00%↑, Circle's institutional positioning, reinforced by partnerships with BlackRock and BNY Mellon, makes it an attractive acquisition target.
ICYMI:
Zoom out 🔎 The key thing now is whether Ripple would offer as much as $20 billion, as some rumors suggest. We must remember that acquisition premiums typically range from 20-30% above baseline valuations, suggesting a more realistic offer would be between $6-6.5 billion.
Zooming out, one must note that Ripple's interest in Circle aligns with its institutional payment focus. The company has consistently positioned itself in the enterprise and institutional space, previously acquiring custody technology firm Metaco for $250 million and working with emerging market governments on central bank digital currencies.
✈️ THE TAKEAWAY
What’s next? 🤔 First and foremost, the potential acquisition represents a pivotal moment for both the stablecoin market and traditional finance. If successful, the deal would significantly reshape the competitive landscape, positioning Ripple as a major challenger to Tether's USDT dominance while accelerating stablecoin integration into mainstream financial systems. Additionally, the acquisition would arrive at a crucial juncture when Visa V 0.00%↑ and Mastercard MA 0.00%↑ are both developing infrastructure to support stablecoin-based payments, and regulatory frameworks are becoming more accommodating. The CFTC's pilots for tokenized collateral that include stablecoins signal growing institutional acceptance. Speaking of Ripple, acquiring Circle would provide instant legitimacy in the stablecoin sector and potentially strengthen XRP's position as a bridge currency between different assets. Circle's established banking relationships and regulatory compliance framework would provide Ripple with valuable institutional credibility. Looking ahead, this consolidation trend is likely to only continue as cryptocurrency companies with significant resources seek to acquire regulated entities with established market positions. More importantly, as traditional finance and cryptocurrency markets continue to converge, acquisitions of this magnitude will likely become more common soon, further reshaping how money moves through the global economy.
ICYMI:
Robinhood’s new blockchain platform will connect European investors to US markets 💶🇺🇸
The (BIG?) News 🔥 FinTech giant Robinhood HOOD 0.00%↑ is developing a blockchain-based platform that will enable European retail investors to trade US securities.
The initiative, currently in development, aims to leverage blockchain technology to create a more accessible, efficient pathway for international investors to participate in US markets.
Let’s take a closer look at this, see why it matters, and what’s next.
More on this 👉 The California-based FinTech company is reportedly in discussions with digital asset firms to launch the platform, with Arbitrum (a Layer 2 blockchain built on Ethereum) and Solana under consideration as potential technological frameworks. While discussions remain ongoing with no final agreement announced, the move represents a significant step in Robinhood's European expansion strategy.
The platform will focus on offering tokenized securities - digital tokens that represent traditional financial instruments like stocks. This approach promises several advantages over conventional trading infrastructure, including reduced operational costs, enhanced transparency, standardization, and faster settlement times.
According to a Global Financial Markets Association report, distributed ledger technology could unlock approximately $20 billion annually in global clearing and settlement costs. Not too shabby!
Zoom out 🔎 Robinhood has been methodically preparing for this European venture. In April 2025, the company secured a brokerage license in Lithuania, enabling it to offer investment services throughout the European Union. This follows its acquisition of cryptocurrency exchange Bitstamp in June 2024, which provides regulatory framework advantages through Bitstamp's MiFID multilateral trading facility license.
In a March podcast, Robinhood CEO Vlad Tenev highlighted the strategic importance of tokenized securities:
"I think tokenized securities can really push forward US company dominance in the global markets. Right now, it's very difficult to invest in a US company if you're overseas."
Robinhood isn't alone in pursuing tokenized assets. Financial giants, including BlackRock, Franklin Templeton, and Apollo have launched tokenized funds in recent years, with BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) attracting over $2 billion since its launch.
✈️ THE TAKEAWAY
What’s next? 🤔 First and foremost, we must note that this blockchain initiative positions Robinhood at the forefront of a transformative shift in global finance. The tokenization of traditional securities represents a structural evolution that could fundamentally alter how capital markets operate across borders. For Robinhood specifically, success in this venture could significantly expand its addressable market beyond US borders while diversifying revenue streams at a critical time - the company reported an 8.6% revenue decline in Q1 2025, though crypto trading volumes showed 28% year-over-year growth. Zooming out, the broader implication for the FinTech and finance sectors is the acceleration of blockchain adoption for mainstream financial applications beyond just cryptocurrencies (& stables). Looking ahead, we can expect other brokerages and financial institutions to pursue similar blockchain-based solutions for cross-border investing. Traditional exchanges and clearinghouses may thus face pressure to modernize or risk disintermediation. Regulators across jurisdictions will likely also develop more comprehensive frameworks for tokenized securities as adoption increases. With industry forecasts projecting the tokenization market to reach $18-23 trillion within the next 5-8 years, Robinhood's move may well represent the early stages of a fundamental restructuring of global capital markets. Paradigm is shifting.
ICYMI: The Renaissance Platform: Robinhood's transformation from meme stock enabler to financial services powerhouse 😤📱[unpacking the most important numbers, what they mean, see how the FinTech giant transformed from meme stock enabler to financial services powerhouse & what’s next for Robinhood]
Musk's xAI, Palantir, and TWG Global join forces to transform financial services with AI 🤝🤖
The news 🗞️ Elon Musk's artificial intelligence company xAI has formed a strategic partnership with data analytics firm Palantir Technologies and investment firm TWG Global.
This collaboration aims to accelerate AI adoption across the financial services sector, addressing the challenge that 74% of organizations remain stuck in proof-of-concept phases without achieving meaningful returns on their AI investments.
Let’s take a quick look at this and see why it matters.
More on this 👉 The partnership will deliver enterprise-level AI solutions designed to integrate artificial intelligence at the core of financial operations rather than as siloed technology projects. By combining xAI's advanced models - including its Grok family of large language models and Colossus supercomputer - with Palantir's data integration platform, the alliance promises to help financial institutions move beyond fragmented systems to fully leverage AI's transformative potential.
The offering introduces several innovative elements, including an outcome-based business model rather than traditional per-seat licensing, with implementation potentially yielding results within 90 days. TWG Global, led by Guggenheim Partners founder Mark Walter and entertainment financier Thomas Tull, will spearhead implementation efforts directly with executive leadership.
Key components of their solution include what they describe as an "agentic workforce" - modular AI agents tailored to specific business processes - with military-grade security and deep focus on orchestration across functions to deliver benefits from revenue generation to cost reduction.
✈️ THE TAKEAWAY
What’s next? 🤔 First and foremost, this alliance represents an interesting shift in how AI may be deployed in financial services. By targeting C-suite leadership rather than technology departments, the partnership acknowledges that successful AI transformation requires enterprise-wide strategic commitment rather than isolated initiatives. For financial institutions, this approach could potentially accelerate competitive advantages in a sector where, according to PYMNTS Intelligence research, 72% of finance leaders are already actively using AI for functions ranging from fraud detection (64%) to customer onboarding automation (42%). Of course, challenges remain. Consumer skepticism continues to be a huge barrier, with approximately 20% of U.S. consumers viewing AI tools as potential security risks. The partnership's emphasis on military-grade security appears designed to address these concerns. Zooming out, the collaboration also signals xAI's expanding business footprint following its acquisition of Musk's social media platform X in March 2025. For Palantir, this represents further diversification into commercial applications of its data integration capabilities originally developed for government applications. Looking ahead, we may see this partnership model replicated across other sectors beyond just financial services, particularly in industries with complex regulatory environments and extensive legacy systems. The alliance's stated expectation to welcome "many more partners" suggests this is only the beginning of a broader ecosystem play that could reshape enterprise AI implementation strategies across multiple industries. We will be watching this.
ICYMI: Banks finally offload $13B in 𝕏 debt 👀💰 [quick recap of the financial engineering here + a bonus dive into x/xAI combo that Musk is going all in with now]
🔎 What else I’m watching
Klarna Reaches 11 Million UK Customers 🇬🇧 Klarna has surpassed 11 million active customers in the UK, making it the company's third-largest market globally. The BNPL giant has also doubled its merchant base to 60,000 in the past year, with a 30% revenue increase in 2024. Recent partnerships with major brands like Argos, eBay, Eurostar, and John Lewis have contributed to Klarna's growth. The company aims to continue empowering shoppers with innovative tools and experiences.
Zest AI Launches LuLu Strategy for Lending Intelligence 💡 Zest AI has introduced LuLu Strategy, a generative AI lending intelligence tool that provides financial institutions with insights, simulations, and actionable analysis. Initially available to MeridianLink customers, LuLu Strategy helps optimize lending operations and improve portfolio performance. The platform offers policy simulations, application insights, unbooked application analysis, and loan performance monitoring, enabling financial institutions to make data-driven decisions and expand access to credit. ICYMI:
Rain and Visa Partner for Onchain Credit Cards 💳 Rain has joined Visa's stablecoin settlement pilot program, enabling 7-day, 365-day settlement using USDC. Rain's platform tokenizes credit card receivables and facilitates stablecoin-based settlement, enhancing capital efficiency and transparency. This partnership aims to integrate blockchain technology with traditional finance, making digital assets more accessible and interoperable for everyday use. ICYMI:
💸 Following the Money
Duna, a business identity startup founded by former Stripe staffers, has raised €10.7M in a Seed funding round led by Index Ventures.
Fuze raises $12.2M for digital asset infrastructure in MENA and Turkey.
Coinbase has boosted its derivatives business by agreeing to buy crypto options exchange Deribit for $2.9B.
👋 That’s 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:
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