SoFi is targeting idle crypto cash with an interest-bearing tokenized deposit, bringing tokenization closer to the world of traditional banking products. The development highlights how financial institutions are exploring ways to connect digital-asset ecosystems with deposit-based financial services. Tokenized deposits can represent claims on funds held at a bank while using blockchain infrastructure to support digital transactions. If adoption grows, these products could create new ways to manage funds across traditional and digital financial environments. The move is another sign that tokenization is becoming a strategic focus for fintechs and banks alike.
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Stablecoins and World Trade
Stablecoins are emerging as a potentially important component of the evolving cross-border payments landscape. Their relevance for international trade lies primarily in their ability to transfer value rapidly, continuously and across borders, rather than in any capacity to replace conventional banking systems or trade finance instruments. This report examines the opportunities and limitations associated with their use in trade-related transactions, with particular attention to cross-border payments, settlement, trade finance and the implications for developing economies.
Stablecoins are privately issued digital assets designed to maintain a stable value relative to a reference asset, most commonly the US dollar. They were initially developed to reduce the volatility associated with cryptocurrencies but are increasingly being used for payments, remittances, treasury operations and business-to-business transactions. Fiat-backed stablecoins dominate the market, which remains highly concentrated in a small number of US dollar-denominated instruments, notably Tether (USDT) and USD Coin (USDC). Their main functional features include near-continuous availability, rapid settlement, programmability and the possibility of reducing the number of intermediaries involved in certain transactions.
These characteristics may help address some of the persistent frictions affecting cross-border payments. International transactions can remain slow, costly, opaque and difficult to access, particularly where they depend on lengthy correspondent banking chains, multiple currency conversions and fragmented payment infrastructures. Stablecoins may shorten settlement times, improve traceability and reduce costs in selected payment corridors, or payment routes. Their use may be particularly relevant for low-value business payments, digitally delivered services, remittances and transactions involving firms that have limited access to efficient international payment services.
However, it is essential not to overstate the benefits of stablecoins, as there are complex associated challenges that can overshadow the potential advantages of their adoption. The use of stablecoins in real-economy transactions remains limited compared with their use within crypto-asset markets. Any reduction in payment costs depends on the full transaction chain, including the cost of acquiring stablecoins, converting them into local currency, complying with regulatory requirements and accessing secure on- and off-ramp services. Stablecoins also do not remove the need for foreign exchange conversion, customer verification, sanctions screening, anti-money laundering controls or reliable financial intermediaries.
Curated News
💳 Payments
Hong Kong Payments Firm YeahPay Explores Agentic Payments
Hong Kong payments firm YeahPay is exploring agentic payments, joining the industry’s push to enable AI agents to participate in payment processes. The development highlights the need for payment systems that can support automated transactions while maintaining appropriate security and user control.
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Malaysia and Thai Central Banks Join Singapore’s BLOOM
Malaysia’s and Thailand’s central banks are joining Singapore’s BLOOM initiative, expanding regional collaboration on financial infrastructure. The move reflects growing interest in cooperation across Southeast Asian markets to support innovation in financial services.
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Fomo Pay and PantherTrade Enable Compliant Digital-Asset Transfers
Fomo Pay and PantherTrade are enabling compliant digital-asset transfers through their collaboration. The initiative highlights efforts to make digital-asset transactions more accessible while addressing regulatory and compliance requirements.
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TD and Akoya Announce Plans to Modernize Financial Data Sharing
TD and Akoya are planning to modernize how clients connect and share financial data. The collaboration reflects continued investment in secure data connectivity and the infrastructure that supports open banking and digital financial services.
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Affirm Inks Exclusive Deal with Sam’s Club
Affirm has signed an exclusive deal with Sam’s Club, expanding its presence in the buy now, pay later market. The partnership highlights continued competition among payment providers to secure merchant relationships and reach more consumers.
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🏦 Banking
Standard Chartered Signs Definitive Agreements to Acquire Zodia Custody
Standard Chartered has signed definitive agreements to acquire Zodia Custody, a digital-asset custody business. The transaction highlights the growing involvement of established banks in institutional digital-asset infrastructure and custody services.
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US Banks Are Blocking Third-Party AI Agents from Accessing Customer Accounts
US banks are blocking third-party AI agents from accessing customer accounts, according to the report. The move highlights concerns about security, privacy, authorization, and control as AI agents become more capable of interacting with digital services.
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Europe’s Financial Regulators Query Google over Cloud Outage That Hit Banks
European financial regulators are questioning Google about a cloud outage that affected banks. The incident underscores the importance of operational resilience and oversight of third-party technology providers that support critical financial services.
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Sea Plans IPO for Financial Services Arm Monee
Sea is reportedly planning an IPO for Monee, its financial-services arm. A potential listing could give investors a more direct way to assess the business as digital financial services continue to grow across Southeast Asia.
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💼 Fintech & AI
Banks Expect to Hand Decisions to AI—even If They Can’t Explain Them
Banks are increasingly considering handing decisions to AI systems, even as questions remain about how those decisions can be explained. The trend highlights a central challenge for financial institutions: balancing automation and efficiency with transparency, accountability, and effective oversight.
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BBVA Explores New Approaches to AI Agent Security with NVIDIA
BBVA is exploring AI agent security approaches with NVIDIA. As financial institutions consider more autonomous AI systems, protecting sensitive information and ensuring that agents operate within appropriate boundaries are becoming increasingly important.
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Barclays Plans 5,000 Job Cuts as AI Push Reshapes Operations
Barclays is reportedly planning 5,000 job cuts as it reshapes operations amid an AI push. The report highlights how banks are reassessing their operating models as automation and technology change the way work is performed.
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Cognitive Credit Lands $40 Million from Summit Partners to Scale Credit-Data AI
Cognitive Credit has secured $40 million from Summit Partners to scale its credit-data AI business. The funding highlights investor interest in applying AI to specialist financial data and credit analysis.
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Starling Builds Agentic Financial-Crime Investigator That Takes 17 Seconds
Starling is developing an agentic financial-crime investigator reportedly capable of completing investigations in 17 seconds. The development illustrates how banks are using AI to accelerate investigative workflows, although speed must be balanced with accuracy and appropriate oversight.
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Programmable Banking Platform Hyperlayer Raises £19.5 Million
Hyperlayer has raised £19.5 million to support its programmable banking technology. The funding gives the company additional capital to scale its platform and reflects continued investment in modern financial infrastructure.
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🪙 Crypto
Kalshi and BitGo Allow Customers to Unlock Crypto Liquidity for Margin
Kalshi and BitGo are enabling customers to use crypto liquidity for margin, according to the announcement. The collaboration connects prediction-market activity with digital-asset infrastructure and highlights continued efforts to make crypto holdings more usable across financial products.
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Coinbase Ireland Fined €3.25 Million by Irish Regulators over Safeguarding Breaches
Coinbase Ireland has been fined €3.25 million by Irish regulators over safeguarding breaches. The enforcement action underscores the importance of compliance and customer-asset protections for crypto businesses operating under financial regulation.
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Fireblocks Pushes Back on Reports of $2.5 Billion Acquisition Talks with Visa
Fireblocks has disputed reports of acquisition talks with Visa valued at $2.5 billion. The response puts uncertainty around the reported deal and highlights the market attention surrounding digital-asset infrastructure providers.
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Hong Kong’s CMCC Global Taps Tether’s Hadron to Tokenize Funds
Hong Kong investment firm CMCC Global is using Tether’s Hadron platform to tokenize funds. The initiative adds to the expansion of tokenization beyond cryptocurrencies into investment products and other financial assets.
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📈 WealthTech
LSEG Agrees to Buy Credit-Data Specialist Octus for $3.5 Billion
The London Stock Exchange Group has agreed to acquire credit-data specialist Octus for $3.5 billion. The deal highlights the strategic value of specialist credit intelligence and financial data as market participants seek deeper insights into complex credit markets.
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Fintechs, Banks and Stablecoins Compared on Cheap Cross-Border Payments
A report attributed to the Bank for International Settlements compares fintechs, banks, and stablecoins in the context of low-cost cross-border payments. The headline points to ongoing competition over the cost and efficiency of international transfers.
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🌍 Other
US Fintech Hyperlayer Raises £19.5 Million in Series A Funding
Hyperlayer’s £19.5 million funding round highlights continued investment in banking technology and programmable financial infrastructure. The capital is intended to support the company’s expansion.
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