By Christopher Hamman
According to government job numbers, which were better than expected last week, the US economy is NOT in recession – though many in the US would not agree, given continued rising interest rates, tightening credit, reduced VC, increased layoffs in tech and more. It’s certainly subjective, at the very least – and some might say misleading. That said, the sector saw several positive moves, too.
JP Morgan is working towards using cloud computing to improve hedging solutions.
PayPal was all over the place with improved solutions and partnerships.
Privacy-focused advocates are seeking to reactivate Tornado Cash, a US Treasury-banned crypto mixer, and Gen Z got closer to financial inclusion with a new credit card.
This is your week in Digital Wealth!
WealthTech, RegTech and Treasury
TradeWeb
Over-the-counter marketplace solutions firm TradeWeb reported an Average Daily Trading Volume (ADV)of $1.5 trillion in March across its ecosystems with a total trading volume of $34.7 trillion in the same period with a total trading volume of $85.3 trillion in Q1 2023.
This is a 23% increase year-over-year (YOY), while the average variable fees per million dollars of traded volumes reached $2.71.
Hummingbird RegTech Inc.
To boost compliance activities, boutique RegTech solutions firm Hummingbird launched “Hummingbird Apps”, a collection of compliance tools that integrate seamlessly with third-party applications.
Hummingbird Apps come in three classes: integration apps, filing apps, and data apps, with the option to create customized solutions.
JP Morgan/QC Ware
A recent study by investment behemoth JP Morgan and computing solutions firm QC Ware suggested that quantum computing processes bettered hedging odds, strategies, and frameworks via “quantum deep learning”, an artificial intelligence-driven process that improves outcomes.
The researchers also discovered that the efficiency of classical hedging models increased significantly with training from quantum deep learning.
Quantum computing is still in its earliest research and development stages but is widely seen as the next level of computing evolution.
Crypto, Blockchain, and Digital Assets
Tornado Cash
A motion filed at the District Court, Western District of Texas, Austin Division sought to reopen access to Tornado Cash, a crypto mixer on the Specially Designated Nationals And Blocked Persons List (SDN) List. The Treasury added tornado cash in August last year.
The motion received support from Paul Grewal, the Coinbase Chief Legal Officer.
US Treasury
The US Treasury, in its “2023 DeFi Illicit Finance Risk Assessment,” indicated that noncompliant decentralized finance (DeFi) projects and protocols were used by ” Actors like the Democratic People’s Republic of Korea (DPRK), cybercriminals, ransomware attackers, thieves, and scammers are using DeFi services to transfer and launder their illicit proceeds.”
The Treasury also recommended increased enforcement of AML and other compliance measures to help curb the trend.
FinTech, Personal Finance, and Apps
Bold Commerce/PayPal/Adobe Commerce/Magento Open Source
The e-commerce space has a new flexible offering besides Magento Open Source’s regular checkout option.
Bold Commerce, the multi-channel e-commerce solutions firm, launched its headless checkout integration, a fully customizable solution in partnership with PayPal.
Via Adobe Commerce, brands and firms can integrate the flexible solution without coding from scratch and reduce checkout abandonment rates, which have been at an all-time high.
PayPal Holdings Inc.
In related news, payments giant PayPal Holdings expanded its payment offerings for customers with new features for its Complete Payments Solutions for small businesses.
Businesses can now accept Venmo, PayPal Pay Later, and Apple Pay (as a checkout option).
Customers can also save their payment options in the PayPal vault, improving the ease of payments and security.
Hello Alice
Business support ecosystem Hello Alice launched “Business Health Score”, a product that enables businesses to assess the financial health of small businesses.
The Score, a questionnaire-based tool, was launched in partnership with JPMorgan Chase, Wells Fargo, The Kauffman Foundation, and Mastercard and is run by Hello Alice and the Global Entrepreneurship Network.
Banking, Payments, and Infrastructure
Zurp
We all know how Gen Z has been a “difficult-to-reach” target market for financial services. It could change with Zurp, a Gen Z-focused financial services firm, and the launch of the Zurp Card, a credit card that offers a smart rewards program.
Banking services work with First Pryority Bank’s infrastructure, while Mastercard powers card operations.
Cardholders earn points via purchases and build up credit without regular credit checks.
Zurp is working on building broader products that work with credit services.
US Bank/Kyriba
Payments for businesses got a big boost with a partnership between Kyriba, a San Diego-based financial solutions firm, and US Bank.
Per the integration, payments to clients, vendors, and more are possible via Kyriba’s dashboard, with real-time reporting on US Bank balances and transaction flow monitoring.
Federal Deposit Corporation (FDIC)
It seems the FDIC got stuck with the securities portfolios of Silvergate Bank and Silicon Valley Bank, though many may argue that situation is entirely self-induced.
The FDIC had successfully sold the other business units of the failed banks but is still seeking buyers for the two portfolios worth $87 billion for Silicon Valley and $27 billion for Silvergate Bank.
The FDIC selected BlackRock Financial Market Advisory to enable the sales process.
REtech, Insurtech and Investing
Green Shield Risk Solutions/INSTANDA
Chicago-based Green Shield Risk Solutions partnered with the American arm of INSTANDA, an insurance software solutions firm headquartered across the pond in the United Kingdom to improve its products and enhance policyholder coverage.
Per the cooperation, Green Shield will leverage INSTANDA’s ecosystem to allow customers to adjust rates, quotes, documentation, and interactions.
They can also launch faster new products on the platform, and data access provides insights to improve Green Shield’s niche products.
Rocket Mortgage
The hits kept coming from the nation’s largest mortgage lender Rocket Mortgage with the launch of “BUY+”, a cooperation with its sister firm Rocket Homes.
Customers who select a home with a Rocket Homes Partner Real Estate Agent and a mortgage from Rocket Mortgages will get 1.5% credit of the loan amount (up to $10,000) towards purchase and closing costs.
Homeowners who get a loan from Rocket Mortgages without a referral from Rocket Homes agents will still receive 0.75% of the loan amount towards the same.
