The Week in Digital Wealth (7/9/24)

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Multiparty collaborations are (finally) seeing the light, with a focus on niche utility. That said, the industry is (seemingly) shifting back to its startup bent, showing the resilience of new firms and their founders.

Headlines to take note of:

  • The CFTC gave the all-clear to derivatives clearing firms following stress tests;
  • The SEC got busy with a new website for everyone;
  • The BIS is moving ahead with crypto exposure guidelines for banks;
  • Taxes and 401ks got a boost;
  • The industry is still reeling from the Evolve Bank and Trust hack;
  • And much more!

Of course, it’s your week in digital wealth!


Wealthtech, Regtech, Regulatory, and Treasury

The Commodity Futures Trading Commission (CFTC)

Derivatives clearing firms got the nod from the CFTC in a recent report. According to the Supervisory Stress Test of Derivatives Clearing Organizations: Reverse Stress Test Analysis and Results report, the firms have sufficient resources to weather severe market events.

The CFTCs’ assessment followed eleven market volatility simulations.

The Securities and Exchange Commission (SEC)

Keeping in line with trends, the SEC revealed several updates to its website. The regulator’s new website has an improved user interface, a quick links feature, a tips and complaints section, and faster loading in compliance with relevant standards.

Webull/Apex Fintech Solutions Inc./Moment Technology, Inc.

Retail traders got a plus with a three-way partnership between Webull, Apex, and Moment Technology. The collaboration enables fractional bond trading for Webull’s customers.

Additionally, traders can start with a minimum of $100 to access the fixed-income markets.

SEC/Cboe

The public comment period for Cboe’s (proposed) OEMS proposal closed during the Independence Day holiday. Consequently, if Rule 3.66 gets adopted, Cboe can increase fees or change its Silexx OEMS without the SEC’s (direct) approval.

Crypto, Blockchain, and Digital Assets

Bank for International Settlements (BIS)

Following the July 1st and 2nd meetings of the BIS’s Basel committee, the crypto asset framework for bank exposure has been finalized. Additionally, the committee approved revisions to the crypto prudential standard guidelines.

The committee will publish updates later in the month and has a January 1, 2026, implementation deadline.

Cboe Global Markets/FTSE Russell

Cboe and FTSE Russell got together to develop digital asset derivatives. The collaboration also includes cash-settled index options. Additionally, Cboe filed with the CFTC to migrate cash-settled bitcoin and ether futures to the Cboe Futures Exchange.

Copper/Flow Traders/ClearLoop

Premier crypto custody firm Copper revealed its collaboration with Flow Traders, a boutique trading ecosystem and liquidity provider. The cooperation (directly) integrates Flow Traders’ ecosystem with the ClearLoop settlement platform. Consequently, the integration aims to increase (efficient) connectivity for Copper’s (institutional) clientele.

 

Fintech, Personal Finance, and Apps

Taxfyle, Inc.

Accountants (now) have more accessible filing options with a new product portfolio from Taxfyle. The AI-powered product suite eliminates manual entries via optical character recognition (OCR) automated processes for documents, enabling a (seamless) 1040 filing process.

401GO

Utah-based 401GO revealed the launch of its app for (both) Android and iOS devices. The app allows users to manage their 401ks easily and securely.

Furthermore, the app has several features, including account monitoring and investment tracking capabilities, a financial wellness center, and industry-grade security.

GovOS/FIS Global

Local government-focused software firm GovOS launched GovOS Pay, an efficient payment solution. The new product enables simplified experiences for day-to-day transactions. Additionally, boutique Fintech FIS Global powers the offering.

Klarna/Adobe

AI-driven payments gateway collaborated with software behemoth Adobe. The cooperation integrates the Adobe Commerce ecosystem with Klarna’s Buy-Now-Pay-Later (BNPL) feature.

Consequently, merchants can (now) offer customers flexible options when shopping.

Banking, Payments, and Infrastructure

Palla Financial, Inc./Flagright

Compliance-focused Flagright revealed its integration with niche peer-to-peer payments platform Palla Financial. The collaboration combines Flagright’s AI-powered compliance and advanced fraud detection features with Palla’s ecosystem.

Patelco Credit Union

Following the recent ransomware attack on Dublin, California-based Patelco Credit Union, the FI revealed that customer accounts are safe, but the banking platform is (still) out of operation.

Evolve Bank and Trust

Similarly, in related news, last month’s Fintech-focused Evolve Bank and Trust data breach continued to send shockwaves in the industry. Apart from its (local) customers, other Fintechs, including Stripe, Visa, and Affirm were (also) affected.

Consequently, several Fintechs indicated that industry-wide investigations are (still) ongoing.

Andrews Federal Credit Union/Blend

East Coast-focused Andrews Federal Credit Union revealed the selection of cloud-based banking software firm Blend to integrate its operations. The collaboration integrates Blend’s deposit account offering.

Additionally, the cooperation provides several advantages for customers, including automated identity verification, an improved CRM, and several funding options.

REtech, Insurtech and Investing

Oriental Insurance Co./Chubb

Puerto Rico-based Oriental Insurance and global industry behemoth Chubb collaborated to launch a (entirely) digital accidental death product. The new offering has coverage with a $75,000 limit and is available via the premier Chubb Studio.

Furthermore, the product covers broken bones, funeral expenses, ambulance services, and more.

Way.com/Cure Auto Insurance

Premier digital car ecosystem Way.com and Cure Auto Insurance went beyond limits to introduce a new offering. The Catastrophe Loss Mitigation program is an information service that informs customers of changing weather conditions in flood and hurricane-prone areas.

Additionally, the solution is available across the hurricane belt alongside secure (parking) facilities during (major) storms.

AutoRek/J.P. Morgan Payments

To improve the cash and credit control issues, industry-focused AutoRek and J.P. Morgan Payments collaborated. Consequently, the cooperation provides global access for AutoRek’s ecosystem via integration with J.P. Morgan’s infrastructure.