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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
“Kroll’s exceptional reputation for thought leadership in the risk and advisory space is well-known over the world,” EverC CEO Ariel Tiger said. “Working so closely together offers a significant competitive advantage.” Tiger added that having Kroll as both an investor and as a partner would help EverC build its “global brand with innovative technology to help make ecommerce more safe, secure, and profitable for payment providers, platforms, and marketplaces.”
The amount of the investment was not disclosed, but ahead of the funding EverC has raised more than $61 million in equity capital, according to Crunchbase. Kroll is an independent provider of risk and financial advisory solutions, founded in 1972 and headquartered in New York. Kroll was acquired by Duff and Phelps in 2018. Duff & Phelps rebranded as Kroll in 2021.
The partnership between Kroll and EverC comes as demand grows for fraud detection and prevention tools that can keep up with the increased pace of cyberattacks and illicit ecommerce activity in the payments industry. Calling “transaction laundering” the modern-day equivalent of money laundering, EverC provides innovative solutions such as its MerchantView technology. MerchantView helps companies reduce and avoid fines, protect their brands, and remain compliant by helping them identify illicit transaction behavior. EverC also offers MarketView, a solution for marketplaces that automatically detects and removes false, illegal, and/or dangerous products.
Earlier this year, EverC announced that it had forged a strategic partnership with KPMG. The partnership will combine the financial advisory expertise of KPMG with EverC’s innovations in the ecommerce risk space to help companies grow while successfully managing risk. “As payments providers and marketplaces face an increasingly challenging threat landscape, they will seek ecosystem partners to provide innovative solutions and expert guidance to support their growth,” Tiger said.
Acorns is acquiring U.K.-based kids financial wellness tool GoHenry.
Financial terms of the deal were undisclosed.
The deal is expected to facilitate Acorns’ international expansion and will build its presence in the youth market.
Automated savings and investing app Acornsannounced today it acquired kids money management app GoHenry. Financial terms of the deal, which also includes GoHenry’s European arm Pixpay, were not disclosed.
The benefits of today’s acquisition are multi-faceted. GoHenry; which operates across the U.K., Italy, France, and Spain; will help California-based Acorns initiate its international expansion. The deal will also broaden Acorns’ offerings to include financial wellness and education and will boost the two companies’ combined subscriber number to almost six million.
What’s more, GoHenry’s customer base– which consists of six-to-eighteen-year-olds– brings a younger set of users to the Acorn brand. This is expected to bring more users to Acorns Early, a product that Acorns launched in 2020 to offer friends and families a way to invest in a child’s future.
“All kids around the world deserve access to responsible money management tools and financial education,” said Acorns CEO Noah Kerner. “GoHenry’s mission driven approach is perfectly aligned with Acorns, which we expect will help us accelerate our roadmap and deliver financial wellness to the whole family through all of life’s stages.”
GoHenry was founded in 2012 to help kids learn how to save, invest, and spend responsibly. The company offers a parent-controlled debit card and tandem mobile app that helps kids track their allowance, spending, budgets, and savings accounts. The company launched in the U.S. in 2018 and expanded to Italy, France, and Spain after acquiring PixPay last year. Prior to today’s acquisition, GoHenry had raised $121 million from Edison Partners, Revaia, Citi Ventures, Muse Capital, Nexi, and more.
“Since we started on our mission to make every kid smart with money ten years ago, we have helped millions of young people do exactly that and this new relationship with Acorns will enable us to reach many millions more,” said GoHenry Co-Founder Louise Hill.
In the U.S., GoHenry will operate as GoHenry by Acorns. GoHenry and PixPay will operate under their own brand names in the U.K. and Europe. “It’s business as usual for our team and customers in the U.K. and Europe (under Pixpay) with the added opportunities and global reach that this new strategic alignment will bring,” added Hill.
Also founded in 2012, Acorns helps users round up their purchases and automatically invest their spare change. The company has raised $507 million, including its $300 million Series F round received in 2022 after cancelling its previously planned SPAC merger.
LeapXpert, a specialist in compliant business communications, has locked in $22 million in Series A+ funding.
The round was led by Rockefeller Asset Management via its Technology Ventures Group.
LeapXpert most recently demoed its technology at FinovateFall 2022 in New York.
Business communications company LeapXpert has secured $22 million in Series A+ funding. The round was led by Rockefeller Asset Management via its Technology Ventures Group. Also participating in the round were Uncorrelated Ventures, and the Partnership Fund for New York City. Existing investors and a new strategic investor were also involved in the funding.
“Today marks a significant milestone for LeapXpert’s growth journey,” LeapXpert Dima Gutzeit founder and CEO said. “Our goal is to set the global standard for responsible and flexible employee-customer communication, and with this funding, we are one step closer to achieving our vision.”
This week’s investment takes LeapXpert’s total capital to $36 million, according to Crunchbase. LeapXpert will use the funding to help meet increasing demand for its services from financial institutions. The investment will also fuel its entry into other industry verticals and build out its partnership network. Additionally, the investment will support continued development of its LeapXpert Communications Platform, and launch a new public SaaS solution.
The platform helps balance the ability of customers to use popular communication tools with compliance and security requirements. LeapXpert has found that messaging and communications apps are “almost universally used” by businesses in financial services. Yet the compliance technology to regulate them has yet to catch up. With LeapXpert’s technology, companies can offer employees a single corporate identity for business communications through these popular, already widely used options.
“Of course, customers should be able to use iMessage, WhatsApp, SMS, Signal, Telegram, WeChat, or whatever to interact with their service providers,” Uncorrelated Ventures Founder and General Partner Salil Deshpande said. “And financial institutions and other service providers should be able to communicate with those customers using Slack, Teams, or whatever else, while still respecting security, compliance, regulations, and governance. LeapXpert is really the only solution.”
LeapXpert most recently demoed its technology at FinovateFall 2022. At the conference, the New York-based company showed how its app for Microsoft Teams creates a comprehensive digital record of company conversations across all text and instant messaging communications channels.
Credolab and Provenir announced a partnership this week that will make credolab’s SDK available in the Provenir Data Marketplace.
Credolab’s SDK won the “AI Platform” category in Juniper Research’s Future Digital Awards last fall.
Based in Singapore, credolab made its Finovate debut in 2018 at FinovateAsia in Hong Kong.
A new partnership between credolab and Provenir will enable financial institutions to leverage behavioral data to handle the challenges of credit risk management, fraud detection, and more. The companies announced this week that credolab’s mobile SDK will be made available in the Provenir Data Marketplace, a data hub for Open Banking, KYC/KYB, verifications, and other resources.
In a statement, credolab co-founder and CEO Peter Barcak added financial inclusion to the list of challenges that the partnership responds to. “Credolab believes that traditional lending processes exclude many people because they target applicants with pre-existing credit history, typically in the middle- and high-income groups,” Barcak said. “Our aim is to make credit available to all by giving lenders access to a previously untapped, highly predictive source of behavioral data.”
CredoLab’s technology analyzes more than 10 million behavioral features to provide predictive credit risk scores, marketing predictions, and fraud alerts – without processing personal data. Companies using the technology have experienced up to a 40% predictivity uplift, up to a 22% reduction in fraud costs, and up to a 32% increase in approval rate. Last fall, credolab won the “AI Platform” category in Juniper Research’s Future Digital Awards – Fintech & Payments for its SDK. credoSDK offers a multi-modular code library that enables both Android and iOS apps to capture behavioral metadata. With the user’s consent, credoSDK collects both privacy-consented and anonymous metadata, and sends it to credolab’s proprietary scoring engine. The API delivers risk and fraud scores, anti-fraud verification, and marketing insights to users in real-time.
Headquartered in Singapore and founded in 2016, credolab made its Finovate debut at FinovateAsia 2018 in Hong Kong. Today, the company has more than 150 financial companies, banks, fintech unicorns in more than 30 countries as its clients.
Equifax is launching a new consumer credit scoring model called OneScore.
OneScore leverages alternative data, such as telecommunications, utility, and speciality finance data found in the Equifax Cloud.
OneScore offers traditional credit history and payment data on more than 191 million consumers.
Data analytics and credit scoring company Equifax is launching a new consumer credit scoring model. OneScore, the new model, aims to increase the scorable population of credit-seeking consumers.
To accomplish this, the firm is leveraging alternative data, such as telecommunications, utility, and speciality finance data found in the Equifax Cloud. Equifax anticipates this increase in data will provide lenders with a more comprehensive financial picture of consumers.
OneScore offers traditional credit history and payment data on more than 191 million consumers and provides Equifax DataX and Teletrack finance data on 80 million consumers. Because the majority of U.S. consumers have at least one cell phone or utility bill in their name, these tools have the potential to increase credit scores by up to 25 points. This increase translates into a 20% rise in the number of scorable consumers; a population of 8.8 million people.
“Equifax has invested billions of dollars into unique data, verification insights, fraud reduction tools, powerful modeling techniques and cloud-based technology solutions that empower our customers to bring greater access to financial opportunity to more people in more places,” said Equifax CEO Mark W. Begor. “OneScore is a testament to the power of the Equifax Cloud in driving innovation that can increase the visibility of consumers to help expand access to credit and create new, mainstream financial opportunities.”
Founded in 1899, Equifax employs nearly 14,000 employees across the globe. The company earned $5.1 billion in revenue last year by offering its credit, identity, fraud, marketing, and workforce management tools to both individuals and businesses. Equifax has made OneScore available to U.S. lenders and service providers.
The financial services industry has been using alternative data to underwrite risk for some time now. However, what’s continually evolving in this space is the ability of scoring models to gather valuable data from diverse sources and derive meaningful insights from it. As AI advances, we can expect to see more significant strides in underwriting that will enable loans for borrowers who were not previously considered creditworthy under traditional models.
U.K.-based Connect Earth landed $5.6 million (£4.65 million) in seed funding this week.
The company, founded in 2021, offers a carbon tracking API to help financial institutions access sustainability data.
Connect Earth made its Finovate debut in March at FinovateEurope in London.
Connect Earth, an environmental data company based in the U.K., has landed $5.6 million (£4.65 million) in seed funding. The startup, founded in 2021, will use the capital to accelerate its expansion among large enterprises in the U.S. and Europe. Connect Earth noted that it has already begun working with financial institutions like KBC Bank and strategic partners like FIS Global.
“We are delighted to have secured this investment, which will enable us to significantly increase our capacity for working with new partners around the world,” Connect Earth co-founder and CTO Nick Carmont said. “Connect Earth has the potential to make a huge impact on the financial sector and this investment will accelerate our ambitions to become the environmental data backbone of financial services across the globe.
The funding round was led by Gresham House Ventures. Also participating were Love Ventures, Global Brain, The Norinchukin Bank, Portfolio Ventures, and Super Capital VC, as well as strategic angel investors. Existing investors Market One Capital, Mustard Seed MAZE, and Venista Ventures were also involved in the round.
Connect Earth enables businesses to gain critical insights into the climate impact of their spending and investment decisions. The company’s carbon tracking API helps democratize access to sustainability data, empowering individuals and institutions alike to make sustainable choices. Connect Earth’s API can be embedded into financial institutions’ mobile apps to provide carbon footprint estimates for every spend-based transaction. This, according to Connect Earth, helps “bridge the gap between intent, knowledge, and action” when it comes to meeting sustainability goals.
Since the beginning of 2022, Connect Earth has estimated carbon emissions for more than 500 million financial transactions. Partner KBC Bank noted that it saw an increase in customer engagement of 2% and an increase in customer environmental awareness of 20% within the first two months of integrating Connect Earth’s API within its mobile app.
In a statement on the Connect Earth blog, Carmont added that the company also plans to launch “several new products that will break down the barriers to accessing environmental data and tools.” Connect Earth recently announced the launch of Connect Invest, an API solution that provides carbon emissions estimates for stock and share investments.
Connect Earth’s funding announcement – and recent new product – come at an opportune time. In the same Connect Earth blog post, Gresham House Ventures Associate Director Benjamin Faulkner noted that Connect Earth may benefit from “extensive regulatory tailwinds such as TCFD and SFDR” which mandate that financial institutions improve disclosure of their carbon footprints. Accompanying the investment, Gresham House Ventures’ Steward Holness will join Connect Earth’s board of directors.
Connect Earth made its Finovate debut at FinovateEurope 2023 earlier this month in London.
The Smart Branch tool offers banks a digital way to help customers set up direct deposit when they visit the branch in person.
Pinwheel reports that the new tool will prove useful for the 75% of consumers who prefer to open a new account in-person, since setting up direct deposit is a natural next step in the process.
Payroll data connectivity platform PinwheelunveiledSmart Branch today. The new tool gives banks a digital way to set up direct deposits for customers who come into their physical bank branch.
“A customer’s account setup experience should automatically include direct deposit set up when they visit their bank,” said Pinwheel CRO Lauren Crossett. “For banks, it’s a simple fact that the customer relationship starts with a person’s paycheck. People are staying at jobs for shorter periods of time while the prevalence of gig-based jobs continues to grow, as does the number of people with multiple income sources, so banks will have more opportunities than ever to onboard their customers’ direct deposits.”
Smart Branch enables end users to use their smartphone to set up direct deposits and verify income without requiring paper-based forms. This new tool will prove particularly useful for the 75% of consumers who prefer to open a new account in-person. That’s because, as Pinwheel describes, having their income deposited directly into their new account is the “next natural step” when opening a new account.
When banks eschew paper forms for Smart Branch, their customers will use their smartphone to scan a QR code, which will direct them to enter information to connect their payroll or income accounts. Customers without a smartphone can use a bank teller computer or iPad to set up the connection.
“Banks see millions of new account openings per year, so that’s hundreds of thousands of opportunities for banks to set up customers’ direct deposits in one easy step when they visit their branch,” said Pinwheel Client Solutions Lead Kate Marienthal. “There’s no reason the customer experience should fracture when the need to set up direct deposits is presented. Now, thanks to Pinwheel Smart Branch, banks won’t need to send customers away to fill out paper forms at home. They can finalize the process right inside their locations. We’re excited about what the availability of this new solution means for our customers’ omnichannel strategies.”
An iteration of Smart Branch geared toward credit unions and community banks is already in the works. Pinwheel is currently working on a product for smaller FIs that need a swift, lightweight direct deposit switching deployment option. Crossett said the company plans to roll out the new version next month.
Pinwheel was founded in 2018 to create a fairer financial system with its API that connects to more than 1,600 payroll platforms and more than 40 time and attendance platforms. In all, the system covers 80% of U.S. workers and more than 1.5 million employers. Since launch, Pinwheel has amassed $77 million in funding from investors such as GGV, Coatue, and First Round Capital. Kurt Lin, who Finovate interviewed earlier this year, is CEO.
Banking software provider Blend is partnering with Navy Federal Credit Union (NFCU).
The partnership will enable NFCU to reimagine its digital account opening process for new members with greater automation and enhanced workflows.
Blend made its Finovate debut in 2016, presenting its technology at both FinovateSpring and at our developer’s conference, FinDEVr Silicon Valley.
Cloud banking software provider Blend will bring its deposit account product to Navy Federal Credit Union to help the 90+ year financial institution reimagine its digital account-opening process for new members.
NFCU will leverage Blend’s deposit account solution to automate more processes and unify workflows across multiple acquisition channels. The integration will enable members to open new accounts quickly (“in just minutes”) and supports identity and eligibility verification, membership confirmation, decisioning, and new account funding. The new user interface and functionality come courtesy of Blend’s Composable Origination Platform, which is a low-code solution that enables designers to build unique workflows and customer integrations quickly and easily.
“We are thrilled to deepen our long-term relationship with Navy Federal to support this initiative in streamlining deposit account openings,” Blend’s Nima Ghamsari said. “The ability to rapidly deploy innovative solutions in cases like these validates the flexibility and power of our product offerings underpinned by Blend Builder, and we look forward to continuing to work with them on providing best-in-class offerings to America’s service members.”
Blend made its Finovate debut at FinovateSpring in 2016, and also demonstrated its technology at our developer’s event, FinDEVr Silicon Valley, that year. Making its first big splash as an innovator in the mortgage lending space, Blend leveraged high-fidelity data sources to enable lenders to originate efficient, data-driven mortgages. In recent years, Blend has expanded its mission by providing a new range of services beyond mortgages, including deposit accounts, credit cards, and support for other lending solutions such as personal, home equity, and auto loans.
In addition to its partnership with Navy Federal Credit Union, Blend also this year announced that KeyBank has experienced “significant results” – including the ability to close home loans 17 days faster on average – since deploying Blend’s cloud banking technology. “Blend’s mission to bring simplicity is paying off for our teammates who are having a streamlined experience, as it’s also bringing greater transparency to our clients to be instantly in touch with where their closing stands and obtaining it quicker than we’ve ever been able to,” President of Home Lending for KeyBank Dale Baker said.
Blend began the year with news that BMO had fully digitized its residential mortgage refinancing operations for loans secured by property in states and counties that accept e-signatures and digital notaries. BMO is using Blend’s mortgage eNotes capabilities, as well as the company’s Close product which enable customers to complete their mortgage refinancing from any location at any time.
Headquartered in San Francisco, California, Blend was founded in 2012.
Klarna partnered with OpenAI to offer ChatGPT users curated product recommendations.
When users download the Klarna plug-in, they will be able to receive links from ChatGPT for curated products.
The move comes as OpenAI rolls out plug-ins for a select set of users.
Payments innovator Klarna has teamed up with OpenAI to bring ChatGPT users what it calls a “smooth shopping experience” by serving as a product recommendation engine.
Klarna is leveraging OpenAI’s recently-announced plug-in to offer links to recommended products to users who ask ChatGPT for shopping advice. The links will route users to Klarna’s search and compare tool. The use case is not only helpful for users on the hunt for the best products, it also creates value for Klarna’s 500,000 retail partners seeking to reach broader audiences and acquire new customers.
ChatGPT’s Klarna shopping tool isn’t simply built-in for all users, however. There is a bit of friction involved. To use the shopping tool, shoppers must first install the Klarna plugin from ChatGPTs plugin store. Once it is installed, shoppers can ask the chatbot for relevant shopping ideas. If they don’t like the options provided, users can guide ChatGPT further with additional prompts or simply ask for more options. When consumers click on a link provided in the chat, they will be brought to Klarna’s search and compare tool.
“I’m super excited about our plugin with ChatGPT because it passes my ‘north star’ criteria that I call my ‘mom test’, i.e. would my mom understand and benefit from this. And it does because it’s easy to use and genuinely solves a ton of problems – it drives tremendous value for everyone,” said Klarna Co-founder and CEO Sebastian Siemiatkowski. “Klarna is in a unique position to leverage the best technology and data to help people discover new products and solve problems for consumers at every stage of the shopping journey, and we’ll continue innovating to bring these services to our 150 million consumers.”
OpenAI announced the availability of ChatGPT plug-ins yesterday. The new capability will offer ChatGPT access to the internet, helping the chatbot offer users up-to-date information and use third-party services. At launch, other plug-ins include Expedia, Instacart, KAYAK, OpenTable, Shopify, Zapier, and more. The plug-ins are currently only available to a small number of developers and ChatGPT Plus users, but OpenAI will roll them out to more users over time.
Mangopay acquired Whenthen for an undisclosed amount.
The acquisition comes four months after Mangopay bought fraud detection and prevention company Nethone.
The two acquisitions are facilitating the launch of Mangopay’s five new products, including Fraud, FX, Orchestration, and Integration; and two new solutions, including Rental Marketplaces and Retail Marketplaces.
Payment technology company Mangopayannounced it has acquired payments orchestration startup WhenThen, and has already merged the Ireland-based company’s technology into its own. Financial terms of the deal are undisclosed.
Under the agreement, WhenThen’s employees and products are now operating under the Mangopay brand. WhenThen Co-founder Kirk Donohoe has been brought on to Mangopay’s team to serve as Chief Product Officer.
WhenThen was founded in 2021 to help merchants integrate, test, build, and orchestrate payment experiences through its no-code editor. The company offers a range of payment solutions, including Checkout, Tokenization, Fraud, and PaymentOps.
Mangopay offers a modular approach to e-wallet, payments, and multi-currency payout technology; as well as solutions for C2C, B2C, B2B, and crowdfunding marketplaces. With WhenThen’s technology integrated into its own tools, Mangopay customers will be able to build and configure payment flows such as smart routing, increase local conversion rates, add new payment methods at checkout, store and access customer card data, and leverage payment insights via an operations dashboard.
“Acquiring WhenThen enables Mangopay to rapidly accelerate its payment capabilities whilst providing the best payment experiences in the market,” said Mangopay CEO Romain Mazeries. “It represents a strategic asset for our growth plans, following the acquisition of Nethone in 2022 that strengthened our fraud capabilities.”
Today’s announcement marks Mangopay’s second acquisition. The company bought fraud detection and prevention company Nethone in November of last year. The two purchases have already helped Mangopay broaden its offerings. The company is planning to launch five new products, including Fraud, FX, Orchestration, and Integration; and two new solutions, including Rental Marketplaces and Retail Marketplaces.
Mangopay was founded in 2013 and is headquartered in Luxembourg. The company counts Vinted, LeBonCoin, Chrono24, and Wallapop among its clients.
Earned wage access platform Rain has raised $116 million in Series A funding.
The round consisted of $66 million in equity and $50 million in debt financing.
Rain has disbursed more than $150 million in earned wages to its users, and grown its user and client base by 20% in the past 30 months.
Rain, an earned wage access platform, has secured $116 million in combined equity and debt funding. The Series A round consisted of $66 million in equity financing and $50 million in debt, and was led by QED Investors and Invus Opportunities.
“We built Rain to empower people, especially hourly workers, to take control of their finances and eliminate the need for predatory loans,” Rain CEO Alex Bradford said. “With this investment, we will continue to improve our platform and deliver a powerful employee benefit that improves individual financial wellbeing and boosts morale while giving employers a valuable tool for recruiting and retaining workers during a tight labor market.”
Also participating in the Series A were WndrCo, Tribe Capital, and Dreamers VC. The debt facility was provided by Sound Point Capital Management. Rain will use the funding to fuel expansion in the U.S., as well as make investments in technology, infrastructure, marketing, and employee and employer experience.
Rain’s platform enables employers to offer workers on-demand pay or access to earned wages. The company refers to the benefit as “income streaming,” and allows employees to receive their pay after completing a shift rather than waiting for a payday that may be weeks away. Workers are charged a small fee which Rain equates to an “ATM charge” when withdrawing earned wages. Additionally, workers cannot withdraw more than 50% of their gross earned wages per pay period. Earned wage access has emerged as a alternative to payday loans, which often charge exorbitant rates of up to 400% APR. Rain noted that employers using its app have experienced a reduction in employee turnover of up to 80%.
Founded in 2019, Rain is headquartered in Santa Monica, California. The company launched its Instant Pay app in 2020, and has grown its user and client base by more than 20% over the past 30 months. Rain has disbursed more than $150 million in earned wages to its users, helping them avoid “tens of millions in predatory fees” the company noted in a statement.
As the going gets tough for crypto, will the underlying blockchain technology get going?
That was one of the top takeaways from the conversation on cryptocurrencies, digital assets, and the blockchain at FinovateEurope in London last week. We may be in a crypto winter – if not, as author Steven Van Belleghem quipped during his keynote address, a crypto “ice age.” But while the sun may be setting on the initial promise of cryptocurrencies, a dawn of new use cases and novel user interfaces may arrive sooner than we think.
To that end, it is interesting that much of this week’s crypto news revolves around stablecoins and ways that innovative banks and fintechs are using the technology to better serve customers.
Xapo Bank partners with Circle to leverage USDC as Swift alternative
One example of this trend comes in the news that Xapo Bank has teamed up with Circle to become the first licensed bank to integrate USDC payment rails as an alternative to SWIFT. The partnership will enable the Bitcoin custodian and private bank to offer its members the ability to make deposits and withdrawals via the USDC stablecoin without having to pay any fees to Xapo Bank. The institution is offering a 1:1 conversion rate from USDC to USD, further helping its customers avoid both the time and cost of SWIFT-based payments.
“Xapo Bank’s USDC payment rails mark a watershed moment in financial history, combining the speed and cost efficiency of the digital dollar, with the security guarantees of a licensed private bank,” Xapo Bank CEO Seamus Rocca said. “Enabling auto converted USDC deposits and withdrawals at Xapo Bank gives crypto members a safe haven for their savings.”
USD deposits are guaranteed up to $100,000 courtesy of Xapo Bank’s membership in the Gibraltar Deposit Guarantee Scheme (GDGS). The bank noted that all USDC deposits are automatically converted to USD, giving members a 4.1% annual interest rate return on deposits.
Stables issues USDC-to-fiat Mastercard powered by Marqeta
A new partnership between card issuing platform Marqeta and Stables, a stablecoin-based digital wallet formerly known as Tiiik, will enable Stables customers to convert stablecoins into fiat currency and spend wherever Mastercards are accepted, online or in-store. Stables will leverage Marqeta’s dynamic spend controls and Just-in-Time funding capabilities to give its customers broader ability to transact with their stored stablecoins.
“Stables is committed to expanding what’s possible with stablecoins, giving people more flexibility and choice in their payment habits,” Stables co-founder and CEO Erez Rachamim said. “With increasing demand for digital assets, we’re thrilled to work with Marqeta to develop a card that enables more seamless spending on everyday items.”
Headquartered in Sydney, Australia and founded in 2021, Stables rebranded from tiiik at the beginning of this year. In a statement at the company blog, co-founder Bernardo Bilotta wrote, “This update better encapsulates what we can plan to offer to our loyal community. It highlights our dedication to expanding our focus to solve stablecoin related payment problems and any new use cases/services built around stablecoins.”
Circle supports USDC; sets up European HQ in France
We mentioned Circle earlier with regard to Xapo Bank’s new payments offering. Circle also made crypto headlines for its decision to set up its European headquarters in what it referred to as the “crypto-friendly climate” of France. The company, founded in 2013 and maintaining a U.S.-based headquarters in Boston, Massachusetts, has applied to French regulators to become both a licensed Electronic Money Institution (EMI) and a fully registered Digital Assets Service Provider (DASP). Securing these approvals would make Circle the first company to receive full authorization under the DASP regulatory regime.
“France’s comprehensive efforts towards innovation-forward crypto regulation are commendable and closely align with Circle’s vision for the future of the digital payments sector,” Circle CEO and co-founder Jeremy Allaire said. “The DASP registration provides an initial path to support sensible digital asset innovation.”
Circle is the issuer of the USDC stablecoin. The company has come under pressure in the wake of the Silicon Valley Bank crisis as its relationship with another troubled bank, Signature Bank, limited its ability to process minting and redemption of USDC. A de-pegging of USDC, in which the stablecoin lost its one-to-one relationship to the U.S. dollar resulting in investors cashing out of the digital asset by more than $2.6 billion in 24 hours, only added to the company’s woes of late.
Centi launches Swiss franc stablecoin
Swiss fintech Centi, which was founded in 2020, has announced the launch of its Swiss Franc pegged stablecoin. The stablecoin is backed 1:1 by a Swiss bank, and will serve as the foundation for the company’s Global Payment Network. The new offering will enable merchants to get direct payment settlement in their bank accounts in the fiat currency of their choice. Merchants will not need to make any changes to their current accounting processes nor do they need to have extensive cryptocurrency knowledge. Centi noted that its stablecoin will help bring buying power to both buyers and sellers by eliminating the fees and costs charged by credit card companies.
Centi’s Global Payment Network leverages a low-cost transaction model based on a micropayments facilitation foundation. This enables the network to offer the advantages of both cash and electronic payments, as well as seamless integration with online, POS, and cashier payment systems. By leveraging blockchain technology, the network is able to offer fees that are as much as 90% less expensive compared to competing payment services.
“With Centi we have created a new payments universe,” Centi CEO and founder Bernhard Müller said. “Our technology uses the efficiency of the blockchain to lower payment processing fees without requiring users to understand anything about crypto. Our payments solution is a first use case implementation of this technology with many others expected to follow it.”
LiquidStack raises capital to help lower carbon footprint of bitcoin mining
One of the earliest antagonists to the bitcoin and cryptocurrency movement were environmental activists who decried the impact of bitcoin mining on the environment.
This week we learned that LiquidStack, a Massachusetts-based immersion cooling company, has secured Series B funding to build a manufacturing facility in the U.S. Moreover, the firm says that is has a solution, at least in part, to bitcoin mining’s carbon footprint problem. The company boasts the largest install base of liquid cooling for data centers around the world, and has been proven to meet the thermal challenges of cloud, high performance computing, and crypto-mining applications.
The Series B investment came from Trane Technologies, and the amount of the funding was not disclosed. LiquidStack said that it will use the capital to accelerate manufacturing, including the opening of a facility in the United States. LiquidStack CEO Joe Capes noted that the investment from Trane Technologies comes “at a time when demand for sustainable liquid cooling technology has never been greater.”
LiquidStack’s two-phase immersion cooling process reduces data center direct and indirect carbon footprint by more than 1,500 tons per megawatt compared to air cooling. The company’s technology can also be used to reduce the amount of water used to power and cool data centers by more than 300 billion liters per year.
