Revolut seeks $65B valuation in latest funding round π³π¦; BBVA launches crypto trading π€π; Bank of England signals major shift towards stablecoin integration in wholesale markets π¦π¬π§
You're missing out big time... Weekly Recap π
π Hey, Linas here! Welcome back to a π weekly free edition π 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, itβs the only newsletter you need for all things when Finance meets Tech.
If youβre not a subscriber, hereβs what you missed this week:
The Ultimate Beginners Guide to AI ππ€ [5,500+ pages of knowledge to transform your understanding from beginner to AI authority]
The Ultimate List of Resources about Stablecoins πͺ [your one-stop resource list for understanding the most disruptive force in global finance]
The AI Agent Revolution Has Begun π€π [how top tech firms are turning AI agents into revenue engines, efficiency machines, and unfair advantages - fast]
AI-powered digital workers signal new era of human-machine collaboration in finance π€π€π¦ [how the biggest Finance & FinTech firms are leveraging AI today and what this means for the future of financial services + bonus dives into AI + Finance case studies, the ultimate beginners guide to AI & the agentic AI playbook for finance]
Super App wannabe X needs a new CEO as Musk's AI ambitions overshadow social media ops ππΌ [what & why happened, what to expect next + bonus deep dives into X & their huge Super App ambitions]
FinTech giant Ant Group to integrate Circleβs USDC stablecoin into their global payment infrastructure ππͺ [what itβs all about & why it could be huge + bonus reads about other stablecoin initiatives in APAC & the ultimate resource list on stables]
Monzoβs Β£21 million AML fine π€π° [what itβs all about & why it matters for the broader FinTech industry + bonus deep dive into Monzo and their latest financial results]
Revolut accelerates financial services expansion π¦πΈ [new product & services launches that strengthen their Global Financial Super App ambitions + more dives into Revolut inside]
South Korea pivots from Central Bank Digital Currency to private stablecoins ππ°π·πͺ [what this means and why it matters for Korea & the broader FinTech context, what to expect next in stables + the ultimate resource list on stablecoins]
The Ultimate List of Resources about AI Agents π€ [unlock the power of AI Agents: your gateway to the future of autonomous agentic systems]
The Ultimate B2B Growth Playbook for 2025 π [nail your targeting, supercharge your outbound strategy, and close deals with confidence]
As for today, here are the 3 fascinating 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.
Revolut seeks $65 billion valuation in latest funding round π³π¦
The news ποΈ European FinTech leader Revolut is actively pursuing a substantial funding round that would establish a $65 billion valuation, representing a significant 44% increase from its previous $45 billion valuation achieved in 2024.
The London-based neobank is targeting approximately $1-2 billion in total funding through a combination of primary capital raising and secondary share sales.
Letβs take a look at this.
More on this π The funding round is being led by US-based investment firm Greenoaks Capital, with additional participation from existing investors including Dragoneer and Coatue. Abu Dhabi's sovereign wealth fund Mubadala is also reportedly engaged in discussions to acquire a stake. Morgan Stanley is coordinating the overall transaction, which remains subject to final negotiations and could see terms adjusted before completion.
Zoom out π This valuation is all about Revolut's exceptional financial performance throughout 2024. The company achieved remarkable growth metrics, including a 72% revenue increase to $4 billion and net profits reaching $1 billion. Pre-tax profits more than doubled to Β£1.1 billion, driven partly by increased cryptocurrency trading activity. The platform now serves over 60 million customers across more than 30 countries, positioning it as one of Europe's most successful digital banking enterprises. Itβs wild!
Additionally, the timing of this funding round coincides with several strategic developments for Revolut. The company successfully obtained its UK banking license in 2024 after a prolonged three-year regulatory process, providing crucial validation and enabling expanded lending capabilities in its largest market. This regulatory approval has enhanced Revolut's credibility and potentially smoothed pathways for licensing in other jurisdictions, particularly the United States, where the company harbors significant expansion ambitions.
Revolut's growth trajectory also appears sustainable based on projected financial forecasts shared with potential investors. Internal projections indicate revenues could reach $5.9B in 2025 and $9.3B by 2026. CEO Nik Storonsky has articulated ambitious targets of achieving 100M customers across 100 countries, with internal estimates suggesting the company could reach 100M customers by the third quarter of 2026. That would be nuts!
However, some operational challenges warrant attention.
Despite its massive user base, Revolut still struggles with primary account adoption, meaning many customers do not use Revolut as their main banking relationship where salaries are deposited.
This limitation constrains fee generation opportunities and reflects broader industry challenges in transitioning users from traditional banking relationships to digital-first platforms. On the other hand, Monzo has done a brilliant job here, so maybe Revolut needs to copy their playbook, at least a bitβ¦
ICYMI: Digital Banking's Crown Jewel: Monzo's 2025 Annual Report Shows Exceptional Unit Economics and Market Leadership π€π¦ [breaking down the key numbers, what they mean & why you should be bullish on Monzo + bonus deep dives into its competitors Revolut & Starling]
βοΈ THE TAKEAWAY
Whatβs next? π€ First and foremost, this funding round is much more than another capital acquisition for Revolut. It ultimately signals the maturation of the European FinTech sector and the emergence of true global competitors to established financial institutions. The $65B valuation would place Revolut among the most valuable financial technology companies worldwide, thus demonstrating that European FinTechs can also achieve scale and valuation parity with their American counterparts. Looking at the bigger picture, Revolut's success validates the digital-first banking model and suggests continued investor confidence in disrupting traditional financial services. The substantial valuation also indicates that investors believe significant value creation opportunities remain in financial technology, particularly in markets where traditional banking services remain inefficient or expensive. One must note that the strategic focus on US market expansion will likely prove pivotal for Revolut's long-term trajectory. Success in the American market could provide the scale necessary to justify current valuations and support future growth. And no other European FinTech apart from Klarna has really made a difference across the pondβ¦ Looking ahead, Revolut's progress toward obtaining full UK banking credentials for credit services will be crucial for demonstrating regulatory compliance and expanding revenue streams. On top of that, the company's ability to increase primary account adoption will significantly impact long-term profitability and customer lifetime value. The funding round also positions Revolut for a potential public offering sometime soon. With management reportedly targeting a pre-IPO valuation of at least $100 billion, successful execution of current expansion plans could support a substantial market debut within the next few years. Such an offering would represent one of the largest FinTech IPOs globally and could catalyze further consolidation within the European financial technology sector. For the perspective, US-only challenger bank Chime CHYM 0.00%β is now worth $11B after the recent public debut.
ICYMI: Revolut accelerates financial services expansion π¦πΈ [new product & services launches that strengthen their Global Financial Super App ambitions + more dives into Revolut inside]
BBVA launches crypto trading services π€π
The news ποΈ Spain's second-largest bank BBVA BBVA 0.00%β officially launched cryptocurrency trading and custody services for Bitcoin and Ethereum, marking a significant expansion of digital asset services to retail customers in its home market.
The service operates through the BBVA mobile app following regulatory approval from Spain's National Securities Market Commission (CNMV) and represents the bank's third international market entry for crypto services.
Letβs take a look at this, understand why it matters, and what to expect next.
More on this π The new offering enables Spanish retail customers to buy, sell, trade, and hold BTC and ETH within a fully integrated banking environment alongside traditional financial services. BBVA has built the service using its own custody infrastructure rather than relying on third-party platforms, allowing the bank to maintain direct control over asset safekeeping. Solid stuff here, I must admit!
Customers can initiate transactions independently through the mobile application, though the bank explicitly stated it will not provide investment advice on these digital assets (though BBVA did advise rich clients to invest in BTCβ¦ π€·ββοΈ)
The launch operates under the European Union's Markets in Crypto-Assets (MiCA) regulation, which came into effect in 2024 and provides a comprehensive regulatory framework for cryptocurrency services across member states.
Zoom out π BBVA's Spanish launch builds upon previous cryptocurrency initiatives in Switzerland, where the bank introduced Bitcoin trading services for private banking clients in 2021, and Turkey, where subsidiary Garanti BBVA launched comprehensive crypto services in 2023. The Turkey operation now offers a broader range of digital assets, including Solana, XRP, and AVAX, demonstrating the bank's expanding appetite for diverse cryptocurrency offerings.
The timing of BBVA's retail crypto launch coincides with Europe's emergence as a global leader in institutional cryptocurrency adoption. According to industry analysis, approximately 55 European banks now offer some form of crypto or digital asset services, significantly outpacing Asia's 24 institutions and North America's 23.
This European leadership stems largely from the implementation of MiCA, which created legal clarity and actively encouraged competition and innovation in digital payments rather than curtailing development.
βοΈ THE TAKEAWAY
Whatβs next? π€ At the core, BBVAβs launch positions the bank at the forefront of financial innovation within both the Spanish & broader European market. More importantly, given that the bank already indicated plans to expand offerings, potentially including additional cryptocurrencies and tokenized traditional assets such as bonds and funds, itβs clear that BBVA views digital assets not as a peripheral service but as a core component of future banking operations. And thatβs how it should be. Zooming out, as a major player in European banking, BBVA's approach may accelerate adoption among competitors, particularly as tokenization technologies promise to reduce transaction costs by up to 30% and expedite cross-border settlements. Looking ahead, BBVA's integrated model may definitely influence customer expectations across the industry, with retail banking customers increasingly expecting seamless access to both traditional and digital assets within unified platforms. This shift could drive further consolidation between traditional finance and crypto services, ultimately reshaping the competitive landscape for both established banks and emerging FinTech companies. Slowly, then suddenly.
ICYMI: Robinhood goes all in on crypto as it wants to become the global financial Super App π€πΈ [what itβs all about, why it could be huge & how Robinhood is rewriting the rules of investing + bonus deep dives into Robinhood & co.]
Bank of England signals major shift towards stablecoin integration in wholesale markets π¦π¬π§
The news ποΈ The Bank of England has announced a significant departure from its previously cautious stance on digital currencies, with senior officials now expressing openness to incorporating stablecoins into wholesale financial markets.
This policy evolution represents one of the most substantial shifts in central bank digital asset strategy seen globally in recent months.
Letβs take a look at this.
More on this π Executive Director Sasha Mills articulated this new position during City Week 2025 in London, emphasizing that while central bank money should remain the primary settlement asset, the institution is now "open-minded" about stablecoins providing innovative solutions for wholesale market operations.
This marks a stark contrast to the Bank's July 2024 discussion paper, which highlighted "significant financial stability risks" associated with stablecoin use in wholesale transactions.
The transformation in approach stems largely from industry feedback regarding the Bank's initial regulatory framework proposals. Originally, the Bank suggested that large stablecoin issuers maintain all backing assets in non-interest-bearing central bank deposits, a requirement that industry participants deemed financially unviable. In response, the Bank has revised its position to allow a proportion of backing assets to be invested in High Quality Liquid Assets, including government bonds, thereby enabling a sustainable business model for stablecoin operators. Aka the Circle and Tether way.
ICYMI: Senate stablecoin legislation triggers historic rally for Circle and Coinbase stocks π€π [what happened & why this could be the watershed moment for the future of finance + bonus deep dives into Circle, Coinbase & co. AND the ultimate list of resources about stablecoins]
The Bank's regulatory framework now includes transitional holding limits designed to manage systemic risk while allowing market adaptation. Individual consumers would face limits of Β£10,000 to Β£20,000, while businesses could hold up to Β£10 million in stablecoins. These measures aim to prevent sudden mass adoption that could trigger bank deposit flight and undermine traditional credit provision mechanisms.
Zoom out π Complementing these policy changes, the Bank has launched the DLT Innovation Challenge, scheduled to run from mid-September through October 2025.
This initiative will allow firms to demonstrate secure methods for transacting and settling central bank money on external distributed ledgers, providing practical insights into blockchain integration possibilities.
Mills also emphasized the need for a "mixed ecosystem" where new and traditional financial structures coexist, potentially permanently. This vision acknowledges that upgrading existing market infrastructure may be less efficient than building entirely new systems.
βοΈ THE TAKEAWAY
Whatβs next? π€ First and foremost, this policy shift positions the Bank of England as a forward-thinking regulator in the global central bank community, particularly as it navigates competitive pressures from jurisdictions like Hong Kong that are advancing rapidly in digital financial markets. More importantly, the Bank's willingness to adapt its regulatory framework based on industry feedback suggests a pragmatic approach that could accelerate blockchain adoption across UK financial services. Kudos to that! That said, the implications of this shift extend wat beyond stablecoins to encompass broader financial system transformation. By legitimizing digital settlement assets while maintaining central bank money primacy, the Bank is creating conditions for genuine innovation without compromising monetary policy effectiveness. This balanced approach could serve as a model for other major economies grappling with similar digital asset integration challenges. Looking ahead, we can expect several developments to emerge from this. The upcoming consultation on detailed stablecoin requirements will provide clarity on operational standards and compliance expectations. Success in the DLT Innovation Challenge could lead to expanded pilot programs and eventual full-scale implementation of blockchain-based settlement systems. Additionally, the emphasis on interoperability suggests future regulatory frameworks will prioritize cross-platform compatibility, preventing the creation of isolated digital asset ecosystems that could fragment market liquidity. This approach aligns with the Bank's broader objective of maintaining London's position as a global financial center while embracing technological advancement (this will still be tough though!). Looking ahead, we can confidently say that the Bank's evolution on stablecoins represents more than regulatory adjustment - it signals recognition that digital assets are becoming integral to modern financial infrastructure. As traditional and digital systems converge, the UK clearly wants to lead this transformation while maintaining the stability and trust that underpin effective monetary systems.
ICYMI: South Korea pivots from Central Bank Digital Currency to private stablecoins ππ°π·πͺ [what this means and why it matters for Korea & the broader FinTech context, what to expect next in stables + more resources inside]
π What else Iβm watching
BNP Paribas Launches UK Fintech Incubator for AI π BNP Paribas Personal Finance is running its third UK FinTech incubator program, focusing on startups with Gen AI applications for financial services. Selected businesses will receive comprehensive support, including co-working space, mentorship, and personalized assistance. The most promising application will be tested with 100,000 customers on BNP Paribas' myCreation app. Last year, the bank trialed four startups: Furbnow, CarCloud, Inicio, and Paylow. The application deadline is September 5, 2025. ICYMI:
Wise Fined $4.2M for AML Failures π° Wise, a global money transfer service, has been fined $4.2 million by US state regulators for anti-money laundering (AML) control deficiencies. The settlement involves New York, Massachusetts, Texas, California, Minnesota, and Nebraska. Wise must enhance its AML procedures, conduct a lookback of closed accounts, and submit quarterly progress reports for two years. This follows a previous $2.025 million CFPB penalty for misleading customers, later reduced to $44,955. Wise has also faced AML fines in Abu Dhabi and Belgium, highlighting ongoing regulatory challenges. ICYMI: Monzoβs Β£21 million AML fine π€π° [what itβs all about & why it matters for the broader FinTech industry + bonus deep dive into Monzo and their latest financial results]
Ziglu's Financial Collapse π₯ Ziglu, a UK-based crypto and digital banking platform, has entered special administration due to severe financial distress. Founded in 2018 by former Starling Bank co-founder Mark Hipperson, Ziglu was once a high-profile fintech startup that bridged traditional finance and cryptocurrency. Despite its innovative services like "Boost" accounts and "Crypto on Card," the company faced mounting challenges in the volatile crypto market and increased regulatory scrutiny. Financial troubles surfaced earlier this year when Ziglu froze its Boost accounts and faced FCA restrictions. The company's 2023 accounts revealed significant losses, and its exposure to the failed Celsius Network added to its woes. With Β£7.25 million in client money at stake, Ziglu's insolvency has left customers uncertain about their funds. Special administrators have been appointed to oversee the wind-down process, prioritizing consumer protection.
πΈ Following the Money
Castellum.AI, a financial crime compliance platform with in-house risk data, AML/KYC screening, and AI agents, has closed an oversubscribed $8.5M Series A round.
Wefox has raised EUR 151M through a combination of equity financing and debt refinancing as part of its strategic shift towards a Managing General Agent (MGA) model.
US FinTech Alpaca is set to acquire the UK's WealthKernel, a provider of digital investment infrastructure and tax-advantaged products for businesses.
π Thatβs 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:
Very solid write up - thank you as always.