Hot summer came with a few moves from the regulators alongside earnings season for the first half of 2024. Consumers were (once) again in focus with a shift towards safety.
Headlines to take note of:
- Franklin Templeton selected BlackRock’s Aladdin for operations and workflows;
- CME revved up its game;
- The Federal Reserve slammed Green Dot with a (huge) fine;
- The CFPB changed payday loans forever;
- Plus, there’s a new Bitcoin research institute in Wyoming;
- And much more!
Of course, it’s your week in digital wealth!
Wealthtech, Regtech, Regulatory, and Treasury
Franklin Templeton/BlackRock
Investment behemoth Franklin Templeton chose BlackRock’s Aladdin for its technology management. Its platform selection will (expectedly) simplify operations, reduce expenses, meet the needs of its human resources, and more.
Additionally, onboarding starts in 2025 and will occur alongside regular operations.
Once the regulators approve, regulatory premier derivatives firm CME plans to launch Adjusted Interest Rate (AIR) S&P 500 Total Return (SOFR) futures on August 26. There will be a switch this time, though.
The new futures will use the Secured Overnight Financing Rate (SOFR) instead of the Effective Federal Funds Rate (EFFR). In related news, the CFTC approved CME’s migration of its infrastructure to Google Cloud.
In its Q2 earnings call, Nasdaq CEO Adena Friedman announced a 20% rise in its AI-powered Dynamic Midpoint Extended Life Order (M-ELO) volumes. Furthermore, Friedman indicated that Dynamic M-ELO fill rates (also) increased by 20%.
SS&C Technologies/Blue Prism
Similarly, during its Q2 earnings call, SS&C COO Rahul Kanwar revealed the continued (internal) onboarding of Blue Prism, a robotic automation firm. SS&C acquired Blue Prism in 2022.
Crypto, Blockchain, and Digital Assets
University of Wyoming (UW)
The University of Wyoming (UW) took its crypto interest a step further with the launch of the UW Bitcoin Research Institute. Associate Professor of Philosophy Dr. Bradley Rettler will be the institute’s inaugural director. Rettler introduced the Institute at the Bitcoin 2024 Conference in Nashville, Tennessee.
Shockingly, the crypto community’s favorite Bitcoin hashtag emoji’s long reign ended on Twitter/X. The move follows a strategic shift by the Elon Musk-owned social media platform to improve ad revenues.
To boost stablecoin transfers, crypto exchange Coinbase enabled a feature that enables Tron-based USDT transfers to its native Coinbase wallet. The tokens are automatically converted to USDC tokens after that.
Fintech, Personal Finance, and Apps
The Federal Reserve/Green Dot
Alarmingly, the Feds hit digital bank Green Dot with a $44 million fine over compliance issues and practices. The apex bank alleged that Green Dot breached consumer laws in the marketing and operations of its debit card program and tax return service offering.
Consequently, the Federal Reserve proposed the integration of third-party monitoring into Green Dot’s operations as part of corrective measures.
Consumer Financial Protection Bureau (CFPB)
Payday loans could change forever with a new rule proposal by the CFPB. The agency proposed that lenders must disclose fees paid by workers before accessing loans.
Additionally, the measure affects the Truth in Lending Act and brings payday and consumer loans into the same category.
Galileo Financial Technologies
Niche Fintech Galileo Financial took things a notch higher with the launch of Galileo 3D Secure (3DS) Access Control Server (ACS) in the Americas. The move mitigates card-not-present (CNP) fraud for members of its ecosystem.
Compliance automation specialist Avalara partnered with Big Four firm KPMG. The collaboration combines Avalara’s infrastructure with KPMG’s expertise, giving firms an edge.
Theta Lake/Verizon
A July 23 post on Theta Lake’s website outlines how its (recent) SMS compliance integration with Verizon helps manage risk. Additionally, the post identified the SMS capture service via API to include all forms of content sent via SMS/MMS gateways.
Banking, Payments, and Infrastructure
Dragonfly Financial Technologies Corp.
Boutique banking platform Dragonfly revealed measures to ensure compliance with the federal ISO 20022 standards for financial institutions. Furthermore, its Product Advisory Committee (PAC) is working overtime to ensure readiness to adopt the global data exchange standard.
Bank of Clarke/Greenlight
Virginia-based Bank of Clarke partnered with family-focused Greenlight to help improve the financial health of its customers. Additionally, they can sign up for a Greenlight subscription for the app and pay using their Bank of Clarke accounts.
Niche FI platform MANTL revealed its deployment into Q2’s ecosystem via the Q2 Partner Accelerator Program. The integration links MANTL’s deposit origination with Q2’s platform.
Eltropy, Inc.
Community finance institutions (CFIs) can (now) get into the AI game by launching a complete suite of products by AI-focused Eltropy. The offering includes AI Agents, AI assistants, and AI Intelligence.
Additionally, Eltropy developed the portfolio specifically for CFIs, providing leverage in the fast-paced AI industry.
REtech, Insurtech and Investing
Climate and property risk-focused ZestyAI revealed approvals from the Texas Department of Insurance for its storm risk solutions. They include Z-PROPERTY™ Roof Quality, Z-STORM™ and Z-HAIL™.
Foreign investors can (now) invest in the American property market via a platform created by Miami-based Fintech Waltz. Waltz achieves this by creating an LLC, an EIN, and a digital bank account for investors.
Additionally, Waltz provides access to mortgage and refinancing options for up to 30% of the selected property’s value.
The service is (currently) available in nine states.
One, Inc./Selective Insurance
Leading insurance payment ecosystem One Inc. revealed its selection for payments and funds receipt by Selective Insurance. The cooperation enables Selective Insurance to deploy One Inc’s ClaimsPay® within its ecosystem.
