China Explores Yuan-Backed Stablecoins to Boost Global Currency Use
China is reportedly considering the launch of yuan-backed stablecoins to strengthen the renminbi’s role in international finance. Such a move could provide a state-backed digital alternative to USD-pegged stablecoins, potentially reshaping global trade settlements and digital payments. If realized, it would mark a significant step in China’s strategy to internationalize its currency, while also tightening regulatory oversight of cross-border capital flows. Analysts note that this could accelerate adoption of the digital yuan while giving Chinese firms a competitive advantage in global transactions. However, questions remain about foreign acceptance of a tightly controlled currency. This development underscores the rising role of central bank-linked stablecoins in the global financial system.
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Insight of the Day
Embedded Credit Explained
As the ecosystem matures, it is transitioning towards a borrower-first, product-centric network. In this model, borrower needs take centre stage, and credit products are designed to address specific pain points such as flexibility, accessibility, or affordability.
Curated News
💳 Payments
Visa Pushes Tokenization for Seamless Checkouts
Visa is expanding tokenization technology to reduce friction in online payments, aiming to replace sensitive card data with secure tokens across more platforms. The initiative could significantly enhance both security and user experience in e-commerce.
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Coda Acquires Recharge to Strengthen Digital Content Payments
Coda has completed its acquisition of Recharge, expanding its global reach in digital content monetization and distribution. The deal positions Coda as a stronger player in digital wallets and content payments.
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Club Brugge KV Picks Neo as Official FX Partner
Belgian football club Club Brugge KV has partnered with Neo to provide foreign currency exchange services. The deal highlights the growing role of fintechs in the sports and entertainment sector.
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🏦 Banking
Fifth Third Bank Buys DTS Connex for Cash Management
Fifth Third Bank has acquired DTS Connex, a cash management technology provider. The move enhances Fifth Third’s treasury services and digital banking capabilities.
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Better Data Improves Small Business Lending
New data-driven approaches are turning small business lending into a more profitable and less risky activity for banks. Improved underwriting models are enabling greater access to credit while reducing defaults.
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Nu Mexico Grows Customer Base by 50% in a Year
Nu Mexico, the digital banking arm of Nubank, has expanded its customer base by 50% in just 12 months. The growth underscores strong demand for digital-first banking solutions in Latin America.
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💳 Fintech
Mastercard and Alloy Partner on Fraud Prevention
Mastercard has teamed up with Alloy to launch a new fraud prevention solution. The partnership aims to help financial institutions reduce fraud while streamlining customer onboarding.
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Zopa’s Biscuit-Themed Marketing Campaign Turns Heads
UK digital bank Zopa has launched a quirky marketing stunt involving biscuits to engage customers. The campaign highlights Zopa’s unconventional branding strategy.
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AND Global Raises $21.4M for Inclusive Fintech Expansion
Mongolia-based AND Global has secured $21.4 million in Series B funding to scale its inclusive fintech solutions. The funds will be used to expand services across emerging markets.
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South Korea’s Upstage Raises $45M Backed by Amazon, AMD
AI fintech firm Upstage has raised $45 million in a round backed by Amazon and AMD. The funding will support the development of AI-powered financial services infrastructure.
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🪙 Crypto
SoFi and Lightspark Partner on Blockchain Money Transfers
SoFi has partnered with Lightspark to enable blockchain-powered international money transfers. The collaboration aims to deliver faster and cheaper cross-border payments.
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Fed’s Bowman Proposes Limited Crypto Ownership for Staff
Fed Governor Michelle Bowman has suggested allowing central bank staff to hold small amounts of crypto products. The proposal could mark a softening stance on digital asset exposure in policymaking circles.
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Kraken Acquires Capitalise.ai to Expand Pro Platform
Kraken has acquired Capitalise.ai, a no-code trading automation platform, to enhance its Pro offering. The deal expands Kraken’s toolset for advanced crypto traders.
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Libra Promoters Regain Access to $57.6M After Court Ruling
A U.S. judge has unfrozen $57.6 million in crypto assets linked to Libra promoters. The decision restores funds for the embattled project, though legal uncertainties remain.
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📈 WealthTech
Openbank Partners with Upvest for Scalable Investing
Santander’s Openbank has partnered with Upvest to modernize its investment infrastructure. The collaboration aims to provide scalable, API-driven wealth management services.
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📊 Regulation & Economy
Experian Report Names ThinCats UK’s Top Alternative Debt Provider
Experian’s latest M&A activity report highlights ThinCats as the UK’s leading alternative finance debt provider in H1 2025. The findings underscore strong investor demand for non-bank lending channels.
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Atlanta Fed: Inflation Expectations Hold Steady at 2.3%
The Atlanta Fed reported that business inflation expectations remain “relatively unchanged” at 2.3%. This stability may influence upcoming monetary policy decisions.
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⚠️ Other
Financial Scam Losses in Indonesia Hit $282M
Indonesia has reported $282 million in financial scam losses this year. The surge in fraud highlights rising digital risks in Southeast Asia’s growing fintech ecosystem.
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Investors Cut Tech Holdings Ahead of September Slump
Large investors are pulling back from tech stocks ahead of a widely expected September downturn. The move signals market caution amid economic uncertainties.
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