🚀 BlackRock Expands BTC Play in Europe

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Hey Fintech Explorers—Welcome back to Money Explored, the essential Sunday newsletter to stay ahead in fintech!

February is heating up, and fintech giants aren’t slowing down. BlackRock is making a bold crypto play in Europe, OpenAI is deepening its global AI push with SoftBank, and Affirm just pulled off something rare—a BNPL profit.

Here’s what we’re diving into:

• BlackRock eyes Bitcoin ETP expansion in Europe, stirring up the crypto investment scene. 🚀

• OpenAI & SoftBank team up, pushing AI deeper into Japan’s business world. 🇯🇵

• Affirm posts surprise profits, signaling big moves for BNPL. 🎉

It’s all happening—and that’s just the start...

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Let’s dive in!

🌎 3 Major Stories

Dive into this week’s top Fintech developments.

BlackRock Unveils Bitcoin ETP Plans for Europe 🚀

The Big Story 📰: BlackRock, the world's largest asset manager with over $10 trillion in assets under management (AUM), is set to launch a Bitcoin exchange traded product (ETP) in Europe, specifically based in Switzerland. This move represents BlackRock's first foray into crypto-linked ETPs outside of the U.S., where its iShares Bitcoin ETF (IBIT) has amassed nearly $60 billion since its launch just over a year ago. As BlackRock enters the European market, it joins a growing trend among investment firms exploring crypto-backed securities, with firms like Kraken and Bitstamp already making moves in this space. However, the fee structure for the new ETP remains unclear, potentially impacting investor interest and performance.

Key Takeaway ⚡️: BlackRock's entry into the European crypto ETP market could significantly heat up competition, especially considering the recent trends in fee waivers and pressure for lower expenses among financial products. The current dominance of U.S.-based Bitcoin ETFs, which hold 91% of the global market, highlights the importance of strong offerings in Europe. For fintech enthusiasts and investors, this means increased opportunities and potentially better products as firms vie for market share. Understanding the implications of fees and performance metrics will be crucial moving forward, as BlackRock’s commitment may signal a shift in how traditional finance interacts with the blockchain landscape.

OpenAI & SoftBank Join Forces for AI in Japan 🇯🇵

The Big Story 📰: OpenAI has teamed up with SoftBank to create a joint venture company named SB OpenAI Japan, set to market enterprise AI solutions across major Japanese firms. The venture will introduce “Cristal intelligence,” which aims to transform operations within SoftBank Group and revolutionize corporate practices in Japan and beyond. An impressive $3 billion annual investment from SoftBank will support integrating Cristal intelligence alongside existing tools like ChatGPT Enterprise in its subsidiaries. SoftBank’s CEO Masayoshi Son emphasized that this initiative will foster innovation and automate over 100 million workflows, enhancing productivity at an unprecedented scale.

Key Takeaway ⚡️: The OpenAI and SoftBank partnership marks a significant milestone in enterprise AI deployment, particularly in Japan. Companies will benefit from priority access to cutting-edge AI models, driving efficiencies and transforming routine tasks, such as financial reporting and customer management. This collaboration signifies a pivotal moment for businesses seeking to harness AI's potential for increased productivity and innovation. For investors and industry players, this initiative highlights the growing importance of AI technologies, presenting new opportunities and a competitive edge in rapidly evolving markets. Keep an eye on how this partnership shapes the future of enterprise solutions in Japan and beyond.

Affirm's Surprise Profit: A Holiday Win! 🎉

The Big Story 📰: Affirm has experienced a remarkable surge in its stock price, soaring 19.5% following a successful holiday shopping season that propelled the buy now, pay later (BNPL) lender into a surprise profit. The spike in consumer use of Affirm's services was fueled by retailers' aggressive discounts aimed at attracting budget-conscious shoppers, amidst high inflation and interest rates. In a noteworthy performance, Affirm reported a gross merchandise volume (GMV) of $10.1 billion for the quarter ending December 31, well ahead of analyst estimates. Notably, Affirm achieved its first profit since becoming a public company, with net income of $80.4 million. Its total revenue also jumped 47%, outpacing forecasts, while the company projected robust revenue growth for the upcoming fiscal year.

Key Takeaway ⚡️: Affirm's stellar performance underscores a growing trend as consumers increasingly turn to BNPL solutions to maintain financial flexibility in a challenging economic landscape. The company's ability to capitalize on strong retail partnerships and demand for zero-percent financing has positioned it as a key player in the fintech arena. This development highlights the potential for BNPL services to reshape consumer spending behaviors and provide viable alternatives to traditional credit. For fintech enthusiasts and investors, Affirm's success could signal a shift in investment focus toward companies that harness trends in consumer demand and economic adaptability, potentially opening doors to new opportunities in the financial technology space.

🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

• Coinbase Crowned UK’s Crypto King 🇬🇧: Coinbase has officially become the largest registered digital assets company in the U.K. after securing virtual asset service provider (VASP) registration from the Financial Conduct Authority (FCA). This enables Coinbase to offer both crypto and fiat services, solidifying its position in its largest international market. The move reflects growing regulatory support for crypto in the U.K., with Coinbase highlighting that crypto's potential for economic growth is being recognized globally. Additionally, Coinbase is ramping up its support for developers by acquiring the onchain ads platform Spindl, aimed at improving app visibility in the blockchain space.

• PayPal's Earnings Surprise 💹: PayPal reported strong quarterly earnings, surpassing estimates for both earnings and sales, which typically would send investors into a frenzy. However, despite promising guidance and a successful refresh of its services, the stock saw a decline post-announcement. Analysts attribute the dip to lingering concerns about competition and investor expectations, highlighting the challenge of sustaining momentum in a rapidly evolving fintech landscape. While the earnings were a victory, the stock market seems to be looking for even more signal of PayPal's long-term growth strategy.

• XRP vs. Solana: Crypto ETF Showdown 🥊: XRP and Solana are racing towards the coveted spot ETF approval, with both making significant progress in recent weeks. The SEC recognized Solana's ETF application on February 6, while interest in XRP has surged with multiple fund managers tossing their hats in. Currently, Polymarket bettors give Solana a slight edge, predicting an 85% approval chance versus XRP's 80% for 2025. However, uncertainty looms due to regulatory hurdles, especially surrounding Solana's classification and Ripple's ongoing legal issues. This promises to be a thrilling race!

💸 Major Money Moves

Tracking big market shifts in Fintech this week.

• Fimple Banks $12M for Growth! 🌍: London-based Fimple has successfully raised $12 million in Series A funding, led by DN Capital and Smartfin, along with contributions from Albaraka Portfolio and Tera Portfolio. This investment will fuel its expansion into the MENA region and CIS markets, while also enhancing product innovation. Founded by Mücahit Gündebahar and Abdurrahman Çınar, Fimple offers a cloud-native core banking platform that's both flexible and composable. With existing partnerships in Turkey, including Aytemiz Investment Bank and Misyon Bank, Fimple aims to redefine banking solutions with its comprehensive modules, including Sharia-compliant finance.

• Jump's $20M Boost: AI for Advisors 🤖: AI advisory tech provider Jump has raised $20 million in a Series A round, led by Battery Ventures, with support from Citi Ventures and others. With this fresh funding, Jump aims to enhance its AI workflow offerings, automate crucial tasks for financial advisors, and adapt to market demand. The company's AI assistant integrates smoothly into existing workflows, helping with meeting prep, compliance, and client follow-ups. Since its launch in January 2024, Jump has seen a 35% monthly growth rate and expanded its team from three to over 40 members, while partnering with LPL Financial to reach 23,000 advisors.

• Cashfree Payments Bags $53M for Expansion! 🚀: Cashfree Payments has secured an impressive $53 million (INR 450 crore) in a funding round led by KRAFTON, with support from Apis Growth Fund II. This capital injection is set to turbocharge Cashfree's product offerings and market reach, enhancing its payment solutions and driving global growth. The partnership with KRAFTON aligns with Cashfree's mission to empower Indian businesses in the digital economy, focusing on cross-border transactions and security innovations. With a robust merchant base, cashing in on a 130% increase in signups, Cashfree is poised for significant advancement both in India and the UAE.

Thanks for reading and have a relaxing Sunday,

— The Money Explored team