Santander enters the stablecoin race 👀🪙; Revolut is building a crypto derivatives platform 😳📈; Robinhood secures Lithuania's first crypto license 🏦🇱🇹
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]
Circle's explosive IPO debut signals new era for stablecoins in public markets 📈🔥 [quick recap of the IPO performance and what it indicates + bonus dives into Circle’s intensifying competition & the ultimate list of 110+ real-world stablecoin use cases]
Digital Banking's Crown Jewel: Monzo's 2025 Annual Report Shows Exceptional Unit Economics and Market Leadership 😤🏦 [breaking down the key numbers, what they mean & why you should be bullish on Monzo + bonus deep dives into its competitors Revolut & Starling]
Wise's New York migration indicates deepening crisis for London's capital markets 👋🇬🇧 [London’s growing challenges, what it means for the future of Wise & FinTech per se + bonus deep dive into Wise & why you aren’t bullish on them enough]
dLocal expands African presence through AZA Finance acquisition 😳💸 [what it’s all about, why it makes sense & what’s next for dLocal + bonus areas on other notable FinTech M&As & some resources for profitable acquisitions]
Klarna expands banking ambitions with debit card launch 💳🏦 [why it makes sense & what does this indicate about the future of FinTech + bonus deep dive into Klarna & PayPal]
PayPal expands physical payments footprint with new credit card 💳🛍️ [why it matters & what to expect next + bonus deep dive into PayPal & co]
Unlock Explosive Growth: The Ultimate LTV/CAC Calculation Template 📈 [master the art of profitable customer acquisition with this incredible financial tool]
The Ultimate List of Resources about AI Agents 🤖 [unlock the power of AI Agents: your gateway to the future of autonomous agentic systems]
The Ultimate List of Top Seed Investors of 2025 💸🚀 [discover the top 100 people shaping the future of startups - and how to get their attention]
The VC Financial Playbook 💸📚 [transform your venture capital decisions from guesswork into precision]
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 wild week in the financial technology space, so make sure to check all the above stories.
Santander enters the stablecoin race 👀🪙
The news 🗞️ Banco Santander has emerged as the latest major financial institution to explore the rapidly expanding & super hot stablecoin market, with early-stage plans to launch both euro and dollar-denominated digital tokens.
The Spanish banking giant is considering either developing its own stablecoin or providing customer access to existing tokens through its digital banking platform, Openbank.
Let’s take a look at this and see why it matters.
More on this 👉 This strategic move positions Santander alongside other global systemically important banks that have already entered the stablecoin arena. Societe Generale launched its EURCV euro coin in 2023, while Deutsche Bank participates in the ALLUnity stablecoin initiative, and Standard Chartered is involved in a Hong Kong-based joint venture.
Should Santander proceed, it would become the fourth G-SIB to embrace stablecoins directly. Let that sink in.
The timing reflects broader regulatory shifts favoring digital assets. The European Union's Markets in Crypto-Assets regulation has provided clearer frameworks for crypto services, while the Trump administration's supportive stance on stablecoins has encouraged institutional adoption. Openbank has already applied for MiCA licenses to offer retail cryptocurrency services across its European markets, including Spain, Portugal, the Netherlands, and Germany.
Zoom out 🔎 Santander's blockchain experience positions the bank well for this transition. The banking giant was an early investor in Ripple, issued digital bonds on Ethereum in 2019, and participates in Fnality, a wholesale blockchain settlement network. This clearly demonstrates the bank's long-standing commitment to financial technology innovation.
The stablecoin market has grown to $250 billion, with dominant players like Tether generating billions in quarterly revenue from Treasury yields backing their tokens. For Santander, dollar-denominated stablecoins could prove particularly valuable given the bank's substantial Latin American customer base, where local currency volatility drives demand for stable digital alternatives.
✈️ THE TAKEAWAY
What’s next? 🤔 First and foremost, Santander's entry into stablecoins yet again signals a fundamental shift in traditional banking's relationship with digital assets. And it carries significant implications for both the institution and the broader financial services ecosystem. For Santander, stablecoins represent a strategic opportunity to capture value in the growing digital payments infrastructure while strengthening customer relationships across its global footprint. The bank's LatAm operations could particularly benefit from dollar-denominated stablecoins, providing customers with stable value storage and more efficient cross-border transactions. But the broader industry implications are equally compelling. As more G-SIBs embrace stablecoins, we are witnessing the emergence of bank-issued digital currencies that could fundamentally reshape payment systems. The potential collaboration among major US banks through The Clearing House suggests we may see joint stablecoin initiatives that leverage collective infrastructure and regulatory compliance capabilities. However, we must note that this trend also intensifies competitive pressure within the banking sector. Yield-bearing stablecoins, in particular, could disrupt traditional deposit-taking models by offering customers direct access to Treasury yields. This may thus force banks to reconsider their fundamental business models and pricing strategies. Looking ahead, regulatory clarity will remain crucial. The success of initiatives like Santander's will largely depend on how effectively regulators balance innovation with financial stability concerns. As more traditional institutions enter this space, we can expect continued evolution in both technology standards and regulatory frameworks, ultimately accelerating the mainstream adoption of digital asset infrastructure across global financial markets. What’s your stablecoin strategy?
ICYMI: Circle's explosive IPO debut signals new era for stablecoins in public markets 📈🔥 [quick recap of the IPO performance and what it indicates + bonus dives into Circle’s intensifying competition & the ultimate list of 110+ real-world stablecoin use cases]
Revolut is building a crypto derivatives platform 😳📈
The news 🗞️ FinTech giant Revolut is positioning itself for a significant expansion into cryptocurrency derivatives trading, according to recent job postings that reveal ambitious plans to build an entirely new business vertical from the ground up.
The company is actively recruiting for a General Manager of Crypto Derivatives across three strategic locations: London, Barcelona, and Dubai.
Let’s take a look at this, see why it matters, and what’s next for Revolut.
More on this 👉 The proposed derivatives platform represents a bold strategic move for the company, which already serves 50 million users globally and has established itself as a pioneer in mainstream cryptocurrency adoption since introducing crypto trading capabilities in 2017.
According to the job listings, Revolut aims to create what it describes as "one of the most trusted, scalable, and profitable derivatives offerings in the world." Ambitious!
This expansion comes at a time when Revolut's cryptocurrency operations have become increasingly central to its financial performance.
The company's crypto division now contributes double-digit percentage points to its profit and loss statement, with recent results showing that wealth revenues grew 298% year-over-year, driven primarily by increased crypto trading activity and the launch of Revolut X, its dedicated desktop crypto exchange platform.
ICYMI: Revolut’s profit machine reaches escape velocity with 72% revenue surge and 149% profit growth in 2024 🤯🚀 [deep dive into their 2024 annual report, breaking down the most important numbers, what they mean & why you should be bullish on Revolut + lots of bonus reads inside]
However, one must note that Revolut faces significant regulatory challenges in its home market. The UK Financial Conduct Authority implemented a comprehensive ban on crypto derivatives for retail investors in 2021, citing concerns about product complexity and potential harm to inexperienced traders.
This restriction would hence limit Revolut's options in the UK market unless the company restricts access to professional clients only.
Zoom out 🔎 The strategic selection of hiring locations suggests Revolut is exploring multiple regulatory pathways. The European Union offers a more permissive regulatory environment under its Markets in Crypto-Assets regulation, while Dubai provides a licensing regime that permits retail access to crypto derivatives under appropriate oversight.
Securing regulatory approval in these jurisdictions would be significantly more achievable than attempting to navigate the UK's restrictive framework.
Looking at the bigger picture, the timing of this initiative aligns with broader momentum in the crypto derivatives sector. Major exchange Coinbase COIN 0.00%↑ recently acquired derivatives platform Deribit in a $2.9 billion transaction, signaling institutional confidence in the market's growth potential.
One must remember that derivatives trading represents one of the more profitable segments within the digital asset ecosystem, generating revenue through trading fees, margin charges, and leveraged position fees.
Interestingly, Revolut's expansion plans extend beyond retail customers to include institutional clients, reflecting the company's recognition of the growing institutional adoption of cryptocurrency products. This dual approach mirrors successful strategies employed by other major crypto platforms and positions Revolut to capture revenue from both market segments.
✈️ THE TAKEAWAY
What’s next? 🤔 First and foremost, Revolut's crypto derivatives initiative signals the maturation of the cryptocurrency market, where established FinTech players are investing substantial resources in sophisticated trading products that were previously the domain of specialized crypto exchanges. More importantly, Revolut's move represents a validation of crypto derivatives as a legitimate and profitable business line. Other major FinTech companies will likely thus accelerate their own crypto expansion plans to maintain competitive positioning. This could lead to increased investment in compliance infrastructure, trading technology, and regulatory expertise across the industry. From a market structure perspective, Revolut's entry could democratize access to crypto derivatives for retail investors in permissive jurisdictions, potentially increasing market participation and liquidity. Zooming out, the institutional focus of Revolut's expansion suggests a clear recognition that the next phase of crypto market growth will be driven by professional investors and corporate adoption. This trend is likely to accelerate as traditional financial institutions increase their digital asset allocations and require more sophisticated trading and risk management tools.
Robinhood secures Lithuania's first crypto license 🏦🇱🇹
The news 🗞️ Robinhood’s HOOD 0.00%↑ European subsidiary, Robinhood Europe, has just achieved a significant regulatory milestone by securing the first cryptocurrency asset services license issued by the Bank of Lithuania.
This authorization enables the company to provide comprehensive crypto services, including custody, administration, and transaction execution throughout Lithuania and across the entire European Union.
Let’s take a quick look at this and see why it matters.
More on this 👉 The licensing achievement coincides with Robinhood's completed acquisition of Bitstamp, a well-established cryptocurrency exchange with 14 years of operational experience, for approximately $200 million. Bitstamp brings substantial market presence to the transaction, serving over 500,000 funded retail customers and approximately 5,000 institutional clients as of April 2025.
The exchange generated roughly $95 million in net revenues over the twelve months ending April 2025.
Zoom out 🔎 Lithuania has emerged as an increasingly attractive jurisdiction for cryptocurrency operations, with 374 crypto-related companies currently registered in the country. The Bank of Lithuania has received 29 applications for crypto asset service licenses, with 10 currently under regulatory review.
Lithuanian authorities have extended the transitional licensing period until the end of 2025, after which unlicensed firms will be prohibited from operating.
We must remember that Robinhood's European expansion strategy has been quite comprehensive, having previously secured an A-category brokerage license from the Bank of Lithuania in April. The company also launched Robinhood Legend, a browser-based desktop trading platform, in the United Kingdom in May 2025.
ICYMI:
🔎 What else I’m watching
Visa Launches A2A Payments in UK 💳 Visa has introduced its account-to-account (A2A) payment service in the UK, offering consumers and businesses enhanced control and protection for bank transfers. Visa A2A enables users to manage bills and subscriptions through their bank apps with card-like security. For businesses, it provides real-time settlement via Pay.UK’s Faster Payment System, improving cash flow management and reconciliation. Visa plans to expand the service to e-commerce payments and invites banks and partners to join its open banking model. ICYMI: Visa's moat keeps deepening: network effect dominance, payment digitization, & value-added services create unstoppable growth engine for the finance giant 😤💳 [how network effect dominance, payment digitization, and value-added services create unstoppable growth engine for the finance giant + bonus deep dives into Visa’s & Mastercard’s latest financials]
Liberis Unveils AI Underwriting Agent 🤖 Liberis has launched Ada, an AI underwriting agent designed to enhance accuracy and reduce decision times for business financing. Ada automates data analysis from various sources, including open banking, Companies House records, and credit bureau information, to support human underwriters. While Liberis already automates 85% of its financing decisions, Ada aims to cut manual decision time for complex cases by 50% and improve accuracy by mitigating human bias. ICYMI:
Affirm Expands to Canada with Williams-Sonoma 🇨🇦 Affirm AFRM 0.00%↑ has extended its partnership with Williams-Sonoma, Inc. to the Canadian market, offering pay-over-time services for brands like West Elm, Pottery Barn, and Williams Sonoma. Canadian shoppers can now split purchases into monthly installments with real-time eligibility checks and no hidden fees. This expansion adds to Affirm's Canadian retail partners, including Amazon, Apple, and Samsung. In May 2025, Costco also adopted Affirm's BNPL service to enhance customer loyalty and spending management. ICYMI: Affirm: the profitable growth breakthrough Wall Street missed 💳📈 [deep dive into BNPL giant’s latest financials, unpacking the most important numbers, what they mean & why Affirm might be worth your time and money in 2025 & beyond]
💸 Following the Money
Fintech infrastructure startup OatFi has raised $24M in Series A funding to build a credit network for business-to-business payments.
HSBC has made a strategic investment in account-to-account open banking payments vendor Token.io. The value of the investment was not disclosed.
Kiwi, a FinTech company building AI-powered financial tools for underbanked Latinos in the US, just announced a $7.8M Series A equity round.
👋 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:
Linas- requesting access to the Stablecoin document linked on your March 16 substack article the Stablecoin use cases- I am a subscriber.
This is priceless - thank you for all the great work you're doing sir.