The world's first AI-native investment bank ๐ค๐ฆ; Payments pioneer Remitly embraces stablecoins ๐ณ๐ช; SEC's regulatory clarity for liquid staking ๐ฆ๐
You're missing out big time... Weekly Recap ๐
๐ Hey, Linas here! Welcome back to a ๐ weekly free edition ๐ 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, itโs the only newsletter you need for all things when Finance meets Tech.
If youโre not a subscriber, hereโs what you missed this week:
The Agentic AI Survival Guide ๐ค๐ [from autonomous workflows to enterprise-grade security & strategy, these resources will take you from curious observer to informed builder in the age of Agentic AI]
The Ultimate List of Resources about Stablecoins ๐ช [your one-stop resource list for understanding the most disruptive force in global finance]
AI Agents & MCPs Starter Pack: 10 Curated Repos to Learn, Build, & Scale Autonomous Agents ๐ค [from zero to builder - this toolkit has everything you need to master the agentic future of AI]
Shopify's E-Commerce Empire: balanced brilliance amidst lofty valuations ๐๏ธ๐ [deep dive into their latest Q2 2025 earnings, breaking down the key financial facts & figures, what they mean, whatโs next, and whether Shopify is worth your time and money in 2025 & beyond + bonus deep dive into one of the most compelling FinTech stock today]
Coinbaseโs Q2 2025, or digital asset infrastructure giant navigating valuation crossroads ๐๐ [deep dive into their latest financials, breaking down the most important facts and figures to see whether Coinbase is worth your time and money in 2025 and beyond + bonus deep dive into its biggest competitor Robinhood]
Chime's first earnings: strong fundamentals collide with valuation reality ๐ง๐ [deep dive into their Q2 2025 financials to see how strong fundamentals collide with valuation reality]
Mastercard's network fortress: premium valuation meets regulatory headwinds ๐ณ๐ [breaking down the most important Q2 2025 financial facts & figures, understanding what they mean, and whether Mastercard is worth your time and money in 2025 & beyond + bonus deep dive into Visaโs latest financials and more reads inside]
The Only Capital Investment Template Youโll Ever Need ๐ธ [turn raw numbers into smart investment decisions - in minutes]
The Best VC Template Youโve Never Used ๐ง [a data-driven model for early-stage VCs who want to invest with conviction - not guesswork]
The Ultimate B2B Growth Playbook for 2025 ๐ [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.
The world's first AI-native investment bank ๐ค๐ฆ
Following the money ๐ธ OffDeal, positioning itself as the world's first AI-native investment bank, has recently closed a $12 million Series A funding round led by Toronto-based Radical Ventures.
The financing values the company at approximately $100 million and represents another significant milestone in the application of artificial intelligence to traditional investment banking services.
Letโs take a look at this.
More on this ๐ Founded by Ori Eldarov, a former RBC banker with Harvard Business School credentials, and Alston Lin, a former Meta engineer, OffDeal targets a fundamentally underserved market segment. The company focuses exclusively on sell-side mergers and acquisitions for companies generating between $10 million and $100 million in revenue with EBITDA ranging from $1M to $10M.
This lower middle-market segment has historically been neglected by traditional investment banks due to unfavorable unit economics driven by oversized deal teams and outdated operational structures.
The company's differentiation lies in its comprehensive AI automation of traditionally labor-intensive processes. OffDeal's technology automates buyer identification and matching, pitch deck creation, non-disclosure agreement tracking, information memorandum production, and customer relationship management.
Most significantly, their AI system can identify over 1,000 potential buyers per transaction by analyzing millions of business websites and online records, far exceeding the reach of any individual banker's network.
This technological approach enables OffDeal to operate with remarkable efficiency. The firm currently employs fewer than 10 people total, with only 3 dedicated bankers, yet has closed approximately 10 transactions and launched over 30 sell-side processes. Individual bankers can manage 7 to 10 deals simultaneously, compared to the traditional model where larger teams handle fewer transactions. Not too shabby!
The company targets deal completion timelines of 4 months from start to finish. Nice!
Economics ๐ธ The economic model reflects this efficiency advantage. OffDeal charges a flat 5% success fee with no upfront retainer, making their services accessible to smaller companies that cannot afford traditional investment banking fees. Bankers receive a $100,000 base salary plus 20% of deal fees, enabling significant earning potential.
Managing Director Sam Mielke, a 25-year-old graduate from a regional university, is projected to earn a $2 million bonus this year, demonstrating how the model disrupts traditional Wall Street hierarchies and elite gatekeeping practices.
Client results support the value proposition too. Steve Barnes, who sold his Arizona Montessori school through OffDeal, reported receiving a price 40% higher than his independent outreach efforts had generated. The AI-driven buyer identification process located purchasers beyond his personal network, creating competitive auction dynamics that drove superior outcomes.
โ๏ธ THE TAKEAWAY
Whatโs next? ๐ค At the core, OffDeal's success signals the beginning of fundamental structural changes in investment banking and broader financial services. The company's model demonstrates that AI can successfully automate complex analytical work while preserving the high-value human elements of deal negotiation and client relationship management. This thus represents a template for AI-native approaches across professional services industries. That said, the broader investment banking sector will likely face increasing pressure to adapt or risk obsolescence. Traditional firms carrying legacy cost structures and hierarchical staffing models may struggle to compete with AI-enabled alternatives offering superior economics and faster execution timelines. We anticipate increased consolidation activity as established players acquire AI capabilities or face market share erosion. Zooming out, OffDeal's approach may accelerate deal flow in previously underserved market segments. Improved access to professional-grade M&A advisory services could therefore unlock significant value in the small business sector, potentially driving increased exit activity and entrepreneurial wealth creation. Looking ahead, OffDeal's ambitious target of $100 million in annual revenue by 2027 through 100 transactions annually will test the scalability of their model. Success at this scale would validate AI-native approaches and likely accelerate similar disruption across other investment banking functions, including buy-side advisory, capital raising, and restructuring services.
ICYMI: FinTech's Maturation Moment: how AI and sustainable growth are reshaping financial services ๐ค๐ [breaking down the new FinTech report with key trends, latest developments & massive untapped opportunities + bonus deep dives into top challenger banks, top AI startups & their pitch decks, Agentic AI survival guide & more!]
Payments pioneer Remitly embraces stablecoins ๐ณ๐ช
The news ๐๏ธ Seattle-based digital remittance giant Remitly RELY 0.00%โ serving over 7.8 million customers across 170 countries, has just announced a comprehensive stablecoin integration strategy that signals a fundamental shift in how cross-border payments operate.
Letโs take a look at this.
More on this ๐ The company's strategy encompasses three critical business areas.
First, Remitly is launching a multi-currency digital wallet supporting both traditional fiat currencies and stablecoins, currently in beta testing with full deployment scheduled for September 2025. This wallet addresses a pressing need for customers in economies experiencing high inflation or currency volatility, offering USD-backed digital assets as a stable store of value.
Second, through a strategic partnership with Bridge, a stables infra provider that Stripe acquired, Remitly is enabling stablecoin payouts across its global network. Recipients in select markets will receive funds in stablecoins like USDC, seamlessly converted from Remitly's established fiat infrastructure into supported digital wallets.
Third, the company is integrating USDC into its internal treasury operations, enabling continuous fund movement across time zones and weekends. This reduces reliance on pre-funded local currency pools while improving global liquidity management.
Zoom out ๐ The timing proves strategic, as Remitly recently achieved GAAP profitability with $361.6 million in Q1 2025 revenue, representing 34% year-over-year growth. This financial foundation provides the stability necessary to invest in transformative technology while maintaining operational excellence.
Looking at the bigger picture, the remittance industry now faces compelling economics favoring stablecoin adoption. Traditional cross-border transfers still average 6.26% in fees globally while requiring 2-5 business days for settlement. Stablecoin transactions typically cost under 2% and settle within minutes, creating substantial value propositions for Remitly's customer base of immigrants, freelancers, and families managing international financial obligations.
Regulatory clarity has accelerated adoption timelines too. The recently enacted GENIUS Act provides clear compliance frameworks for stablecoin operations in the United States, reducing regulatory uncertainty that previously constrained institutional adoption.
โ๏ธ THE TAKEAWAY
Whatโs next? ๐ค Remitly's comprehensive stablecoin integration positions the company to capture disproportionate market share as digital assets become mainstream in cross-border payments. The global digital remittance market is projected to grow from $24.5 billion in 2024 to $60.1 billion by 2030, with stablecoins expected to handle 10% of global remittances by year-end. Let that sink in! The broader fintech industry will likely accelerate similar integrations. Western Union WU 0.50%โand MoneyGram have announced stablecoin capabilities, but Remitly's holistic approach spanning customer wallets, payment rails, and treasury operations creates competitive advantages that traditional players may struggle to replicate quickly. Looking ahead, we should expect multi-stablecoin support beyond USDC, integration with decentralized finance protocols for yield generation, and expansion into enterprise cross-border payments. Geographic expansion becomes more feasible as stablecoin infrastructure bypasses traditional banking limitations in underserved markets. Zooming out, one must note that the implications here extend beyond just remittances. Remitly's success could catalyze broader adoption of blockchain rails for international commerce, potentially reducing costs and increasing accessibility for millions of underbanked individuals globally. Slowly, then suddenly.
ICYMI:
Remitlyโs Q2 2025: undervalued digital remittance leader finally achieving sustainable profitability ๐๐ค [a really deep dive into their latest financials, breaking down the key facts & figures, what they mean & why Remitly is worth your time in 2025 & beyond]
SEC provides regulatory clarity for liquid staking, unlocking institutional cryptocurrency adoption ๐ฆ๐
The news ๐๏ธ The U.S. Securities and Exchange Commission has delivered a significant regulatory breakthrough for the cryptocurrency industry by clarifying that certain liquid staking activities fall outside the scope of federal securities laws.
This guidance, issued as part of the SEC's Project Crypto initiative, represents a fundamental departure from the agency's previous enforcement-focused approach toward digital assets.
Letโs take a look at this.
More on this ๐ Under the new framework, receipt tokens representing staked cryptocurrency assets are not considered securities when the underlying staking activities are characterized as "ministerial or administrative" rather than driven by entrepreneurial effort. This distinction creates a clear regulatory pathway for decentralized, protocol-driven staking systems while maintaining oversight over platforms with significant managerial discretion.
The timing of this guidance coincides with explosive growth in the liquid staking sector. Ethereum-based liquid restaking has reached approximately $24 billion in total value locked, while the broader staking market has surpassed $60 billion.
With Ethereum staking now encompassing over 33.8 million ETH - representing roughly 28% of the total supply - the regulatory clarity addresses a critical need in this rapidly expanding market segment.
Zoom out ๐ Industry leaders have welcomed the guidance as a watershed moment that resolves longstanding institutional barriers. Previously, traditional financial institutions faced regulatory uncertainty that prevented them from participating in staking activities, despite the attractive yields typically ranging from 5 to 15 percent annually. The new framework enables pension funds, asset managers, and other institutional investors to earn staking rewards while maintaining liquidity through tradeable receipt tokens, effectively solving the capital lock-up problem that had constrained institutional participation.
The guidance also incentivizes further decentralization within the ecosystem by encouraging liquid staking token providers to minimize human involvement and embrace automated, protocol-level mechanics. This alignment with blockchain's core principles reduces single points of failure while satisfying regulatory requirements.
โ๏ธ THE TAKEAWAY
Whatโs next? ๐ค At the core, this regulatory development signals the beginning of a transformative period for both the cryptocurrency industry and traditional finance. The clarity provided by the SEC creates a foundation for substantial institutional capital inflows, potentially accelerating the maturation of blockchain networks and their integration into mainstream financial infrastructure. And the immediate implications extend beyond liquid staking to the broader decentralized finance ecosystem. As institutional confidence grows through regulatory certainty, we can anticipate increased development of compliant DeFi products and services. This trend will likely spur innovation in areas such as tokenized treasury management, institutional-grade custody solutions, and sophisticated yield-generating strategies that meet fiduciary standards. The guidance also establishes a precedent for how regulators may approach other cryptocurrency activities, suggesting a more nuanced, technology-forward regulatory framework that distinguishes between truly decentralized protocols and centralized service providers. This approach could pave the way for clearer guidance on other DeFi activities, including decentralized exchanges, lending protocols, and synthetic asset platforms. Bullish.
๐ What else Iโm watching
Visa Enhances Cybersecurity Services ๐ Visa has launched a cybersecurity advisory practice to help clients identify, evaluate, and mitigate emerging cyber threats. The new practice will leverage Visa Consulting & Analytics' global network of consultants, data scientists, and product experts to provide services such as training programs and cybersecurity maturity assessments. Additionally, Visa has appointed Jeremiah Dewey, a veteran with two decades of security experience, as the global head of cyber products. Dewey will lead the development of Visa's cybersecurity products and strategic partnerships. ICYMI: Visaโs Q3 2025: the unshakeable digital payments fortress trading at premium valuations ๐ค๐ [deep dive into Visaโs latest quarterly financials, breaking down the most important facts & figures, what they mean and whether Visa is worth your time & money right now + Agentic AI & Stablecoin resources inside]
Marex Adopts JPMorgan's Kinexys for Digital Payments ๐ฆ Marex Group has become the first clearing firm to use JPMorgan's Kinexys Digital Payments for blockchain-based settlements. Collaborating with Brevan Howard Digital, Marex aims to reduce settlement risk and enhance payment efficiency. Kinexys Digital Payments enables instant, programmable 24/7 settlements using blockchain deposit accounts. This technology allows Marex and Brevan Howard Digital to settle payments instantly, reducing time, cost, and risk while maintaining security. ICYMI: JPMorgan Chaseโs Q2 2025: a capital fortress poised for digital assets & stablecoins (r)evolution ๐ค๐ช [unpacking the key financial facts & figures, what they mean, breaking down JPMโs stables & digital asset strategy, and what to expect next from the banking heavyweight + bonus deep dives into Citi, the ultimate stablecoin resource list & more reads inside]
SEC Forms AI Task Force ๐ค The US Securities and Exchange Commission (SEC) has established an AI task force to integrate artificial intelligence into its operations. Valerie Szczepanik, former head of the SEC's Strategic Hub for Innovation and Financial Technology, has been appointed as the first Chief AI Officer. The task force aims to centralize efforts, foster collaboration, and navigate the AI lifecycle. SEC Chairman Paul S. Atkins states that the task force will empower staff with AI tools to enhance efficiency, accuracy, and innovation, furthering the SEC's mission to protect investors and maintain fair markets. ICYMI:
๐ธ Following the Money
Daloopa, a provider of AI-powered data extraction services to hedge funds, investment banks, and other financial institutions, has raised $13M in funding.
Alaan, a UAE-based, AI-powered corporate spend management platform founded by former McKinsey consultants, has raised $48M in Series A funding.
Casap, a firm utilizing AI to automate payment disputes and combat first-party fraud, has raised $25M in a Series A funding round led by Emergence Capital.
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:
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