💵 BofA’s Stablecoin Plan

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

March is here, and fintech is moving fast—with banks, AI, and crypto all making headlines. Bank of America is eyeing a stablecoin launch, Stripe’s valuation is soaring, and the SEC just backed off a major enforcement case.

Here’s what we’re diving into:

• Bank of America signals stablecoin ambitions, waiting on legal clarity. 💵

• Stripe surges to a $90B valuation, fueled by AI-driven growth. 🚀

• SEC dismisses its case against MetaMask, a major win for crypto. 👏

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.

Bank of America Eyes Stablecoin Launch—If Legal 💵

The Big Story 📰: Bank of America’s CEO, Brian Moynihan, indicated the bank’s intention to launch a stablecoin as soon as it becomes legal. In a recent interview, he suggested that the spike in interest around cryptocurrency—sparked by the current "crypto president"—is contributing to expectations of a legal market for stablecoins, which are designed to maintain a value pegged to the US dollar. However, legal constraints under the Bank Holding Company Act prevent banks from mixing banking and commercial ventures. With the administration's focus on loosening regulations in the crypto space, the potential for a Bank of America stablecoin is on the horizon.

Key Takeaway ⚡️: Moynihan’s comments reflect a significant shift in the mainstream banking sector's attitude toward cryptocurrency. As major banks seek to embrace stablecoins, this could lead to increased legitimacy and usage of digital currencies. Investors and fintech enthusiasts should remain vigilant, as the integration of cryptocurrency into established financial systems may introduce volatility previously seen in the crypto markets. The anticipation of regulatory changes fosters a landscape ripe for innovation but also raises concerns over the stability and security of these digital forms of money, urging stakeholders to carefully assess the implications of such developments.

Stripe Soars to $90B Valuation on AI Surge 🚀

The Big Story 📰: Stripe has bounced back to a valuation exceeding $90 billion, demonstrating a resurgence in fortunes for fintech firms, driven largely by increased demand from artificial intelligence companies. This rise marks a significant recovery from a valuation low of $50 billion earlier this year, attributed to economic uncertainties and escalating interest rates. Stripe's co-founder John Collison noted that the company remains profitable, strategically choosing to delay any initial public offering (IPO) without feeling the pressure to do so. The thriving AI sector is reshaping revenue models, making valuations appear more sustainable than during previous speculative booms.

Key Takeaway ⚡️: Stripe’s rebound signals a shift in the fintech landscape, where AI's growth potential is vital for driving demand and profitability in the sector. As Stripe emphasizes stability over rapid public listing, it encourages other fintech firms historically reliant on hype to rethink their strategies. The success of AI-related products indicates a move towards sustainable business practices based on genuine utility rather than mere speculation. Fintech investors and companies should take note of this trend, as the integration of AI in financial services promises to deliver real impacts on efficiency, fraud reduction, and overall customer satisfaction.

SEC Backs Down: MetaMask Case Dismissed! 👏

The Big Story 📰: The SEC has reportedly decided to drop its enforcement action against Consensys, the company behind the widely-used MetaMask wallet. This move signals a notable retreat by the SEC, which has faced increasing pressure from the crypto industry and recent changes in the political landscape. Consensys founder Joseph Lubin announced the news, stating that the SEC would file a stipulation to close the case without imposing a fine. This dismissal fits into a trend of the SEC halting actions against other significant crypto players, suggesting a reevaluation of its heavy-handed enforcement strategy in the rapidly evolving DeFi space.

Key Takeaway ⚡️: Consensys' victory against the SEC marks a pivotal moment for the cryptocurrency industry, indicating a potential shift towards a more lenient regulatory environment. As the SEC steps back, firms may find relief from regulatory overreach that has stifled innovation and caused uncertainty. This change could embolden crypto companies to expand operations and develop new solutions without the fear of punitive actions. For investors and industry professionals, this evolving landscape presents both opportunities and challenges as the regulatory framework for digital assets continues to redefine itself.

🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

• CFPB Drops Lawsuits Amid Turmoil 🔍: The Consumer Finance Protection Bureau (CFPB) has recently dismissed lawsuits against Capital One, Rocket Homes, and others, as it grapples with new leadership changes under the Trump administration. These suits, originally filed under former director Rohit Chopra, accused companies of misleading consumers and engaging in kickback schemes. With the cases dismissed, the CFPB faces a challenging environment, having been ordered to halt most of its operations while the new director, Jonathan McKernan, prepares to address the agency's future.

• Paytm Partners with Perplexity for AI Magic! 🤖: Paytm is leveling up its app by teaming up with Perplexity AI, an innovative search engine, to boost digital accessibility and financial literacy. This integration will provide users with AI-powered search features, delivering real-time insights into financial decisions, market trends, and more—all in local languages! With founders from OpenAI and Meta backing Perplexity, the partnership promises to make navigating finance easier for millions of Indian consumers. As digital payments evolve, this collaboration is set to transform everyday financial interactions.

• Bybit Secures UAE Approval ✨: Bybit has just snagged in-principle approval from the UAE's Securities & Commodities Authority, paving the way for it to launch as a Virtual Asset Platform Operator. This milestone reflects Bybit’s commitment to regulatory compliance while marking a significant step toward offering comprehensive digital asset services in the UAE. CEO Ben Zhou expressed enthusiasm for this authorization, emphasizing its importance for secure crypto trading solutions. While Bybit faces scrutiny in Japan, its recent strides in the UAE and India signal a robust comeback after its recent security breach.

💸 Major Money Moves

Tracking big market shifts in Fintech this week.

• Unique Secures $30M for AI Growth 🇨🇭: Unique, a Swiss startup specializing in “agentic AI,” has successfully raised $30 million in a Series A funding round led by DN Capital and CommerzVentures. The Zurich-based firm aims to revolutionize financial services through customizable AI agents that handle tasks from compliance to investment research. Initially focused on AI-powered video solutions, Unique has pivoted to serve as a "co-pilot" for finance teams. With big names like Pictet and UBP already onboard, Unique plans to leverage its fresh capital for international expansion, particularly in the U.S. market. Total funding now stands at $53 million!

• Alkami Snags MANTL for $400M 💸: Alkami Technology is making waves in the digital banking space with its acquisition of account opening platform MANTL for a whopping $400 million, primarily in cash. MANTL, co-founded by Nathaniel Harley, has been pivotal in optimizing how financial institutions handle account openings, allowing clients to raise over $31 billion in deposits. This acquisition positions Alkami to integrate MANTL's strengths into its broader digital banking suite, enhancing user experience and efficiency. As both companies gear up for this transition, the deal is slated to finalize by March 31, 2025.

• ClearScore Bags £30M from HSBC for Growth 🚀: ClearScore, a leading fintech marketplace, has secured £30 million in debt financing from HSBC Innovation Banking UK. This funding continues their successful collaboration that has spanned since 2017, enabling ClearScore to scale its operations effectively. With over 24 million users across numerous countries, the capital will help enhance product offerings and boost market reach. Notably, the funds will assist in executing their M&A strategy, including the recent acquisition of Aro Finance, expanding their secured loan services and digging deeper into embedded finance.

Thanks for reading and have a relaxing Sunday,

— The Money Explored team