🚀 New Crypto Era Ahead?

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Fintech’s eating the world—don’t get left behind in 2025!

Hey Fintech Explorers—Welcome back to Money Explored, the essential Sunday newsletter to stay ahead in fintech!

The year’s just getting started, and 2025 already feels like it’s brimming with game-changing developments. In this second edition of the new year, we’re spotlighting regulatory shifts, corporate drama, and fintech transformations shaping the landscape.

Here’s what we’re diving into:

  • The Fed’s crypto watchdog steps down, paving the way for a regulatory reset. 🚀

  • JPMorgan sues Viva Wallet execs for €916M in alleged breaches. ⚖️

  • Fintech Dave faces the DOJ, taking bold steps to rebuild trust. 🔥

It’s all happening—and that’s just the start…

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🌎 3 Major Stories

Dive into this week’s top Fintech developments.

The Big Story 📰: Michael S. Barr, the U.S. Federal Reserve's Vice Chair for Supervision and a notable critic of cryptocurrency, has announced his resignation effective February 28, 2025. Barr, who joined the Fed in July 2022, has been instrumental in enforcing tight regulations on digital assets and opposing the development of a U.S. central bank digital currency (CBDC). His departure arrives amid a shake-up in the regulatory space, where Fed Chair Jerome Powell has adopted a more neutral view on cryptocurrencies. With Barr stepping down, the Federal Reserve is expected to halt significant regulatory rulemaking, allowing incoming leadership to redefine U.S. cryptocurrency policies, amidst a landscape where 30% of Americans are open to receiving Bitcoin as salary.

Key Takeaway ⚡️: Barr’s resignation is a game-changer for the U.S. crypto regulatory environment. His exit may foster a more favorable atmosphere for innovation and investor confidence in digital assets. With rulemaking likely on pause, the incoming administration possesses a unique chance to create a balanced regulatory framework that addresses the growing adoption of cryptocurrencies. As Bitcoin prices rise, this shift could energize the crypto market, drawing the interest of fintech startups and traditional financial institutions alike. Investors, industry players, and consumers should closely monitor upcoming leadership changes, as this could signal new opportunities in the evolving landscape of cryptocurrency regulations.

The Big Story 📰: JPMorgan Chase has stepped into the legal arena with two lawsuits against Viva Wallet and its executives following a tumultuous partnership since their 2022 investment. The bank is seeking €916 million, claiming that CEO Haris Karonis and three directors engaged in illegal activities that undermined the value of JPMorgan's investment. Additionally, JPMorgan has targeted Werealize, the company that owns a majority stake (51.5%) in Viva, for allegedly breaching their shareholder agreement by taking business actions without consent. Both lawsuits emphasize a deteriorating relationship and highlight concerns over Viva's governance and operational decisions, which JPMorgan argues compromise not just their interests, but also the attractiveness of Greece for future investments.

Key Takeaway ⚡️: This ongoing legal battle is critical for stakeholders in fintech, raising alarms about the governance and complexities involved in investment partnerships. As JPMorgan pursues these claims, the outcome could redefine the future of Viva Wallet and its ability to attract further investment. It also emphasizes the necessity for clarity and compliance in shareholder agreements to prevent similar disputes. With rising tensions and allegations of undermining actions, industry professionals should closely monitor how this unfolds, as it could have broader implications for regulatory scrutiny and partnership dynamics in the fintech sector. Expect heightened focus on governance practices from both startups and investors as they seek to avoid such pitfalls.

The Big Story 📰: Fintech Dave has come out swinging against an amended lawsuit filed by the Justice Department, which claims the cash advance company misled consumers with undisclosed fees and deceptive practices. Originally initiated by the Federal Trade Commission, the lawsuit alleges that Dave's ExtraCash service failed to transparently communicate fees and falsely promised instant transfers. In response, Dave has revamped its fee structure, eliminating optional tips and express fees, aiming for greater customer clarity. Despite the ongoing legal battle, the company reported a substantial revenue increase of 41% in its third quarter, showcasing resilience amid regulatory scrutiny.

Key Takeaway ⚡️: The showdown between Fintech Dave and the Justice Department serves as a critical case study in compliance and consumer protection within fintech. As the lawsuit unfolds, it emphasizes the importance of transparency in financial services, especially when dealing with sensitive customer interactions. Dave's proactive adjustments in fees might resonate with consumers but raises questions about its former practices. Industry players should take note: maintaining trust and clarity is paramount to long-term success. Furthermore, the outcome could set precedents affecting how fintech companies structure their fees and communicate with users, influencing operations across the sector.

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🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

  • RBC Teams Up with Cohere for AI Boost 🚀: The Royal Bank of Canada (RBC) is joining forces with Cohere Inc. to create a new generative AI platform aimed at the financial sector. This initiative focuses on enhancing productivity and efficiency while ensuring accurate risk management and security. Leveraging Cohere's North AI workspace, the partnership will tailor solutions specifically for finance, meeting stringent security and privacy standards. With RBC ranked third globally in AI maturity among banks, this collaboration positions them to further advance their innovative edge in the fintech landscape.

  • Govs Set to Go Big on Bitcoin in 2025? 🏛️: According to a new Fidelity report, 2025 could be a game-changing year as more governments and central banks are expected to invest heavily in Bitcoin. Despite currently holding Bitcoin mainly through seizures, Fidelity’s Matt Hogan predicts a shift toward official state investments, spurred by concerns like inflation and currency devaluation. The report suggests that nations might start accumulating Bitcoin covertly to avoid price spikes. As this unfolds, the U.S. is eyeing strategic reserves, but official legislative clarity on crypto is still pending in Congress.

  • AI Race Heats Up: Anthropic Hits $60B! ⚡️: The world of enterprise AI is evolving, with fierce competition among players like Anthropic, OpenAI, and Google. During fundraising talks for a massive $2 billion round, Anthropic touted its Claude model as the best for businesses needing tailored solutions, pushing its valuation to a staggering $60 billion. As demand for AI skyrockets, a recent report shows that enterprise spending on generative AI surged sixfold in 2024 to nearly $14 billion, reflecting companies' keen interest in optimizing processes and enhancing productivity through advanced technology.

💸 Major Money Moves

Tracking big market shifts in Fintech this week.

  • Nevermined Secures $4M for AI Payments 💳: Nevermined has raised over $4 million to enhance its AI payment infrastructure, enabling seamless transactions between AI agents. This funding round, led by Generative Ventures, aims to tackle the unique challenges of AI-Commerce with the ambitious goal of becoming the “PayPal for AI.” Co-founders Don Gossen and Aitor Argomaniz emphasize the need for dynamic payment systems that can adapt instantly, unlike traditional methods. With partnerships already in place, Nevermined is set to leverage this investment to expand and unlock the potential of AI transactions, which may contribute an extra $13 trillion to the economy by 2030.

  • Nomupay's $37M Boost to Simplify Payments in Asia 🌏: Nomupay has secured $37 million in its latest funding round, aiming to transform the fragmented Asian payments landscape. This investment will enable greater access for international acquirers and merchants through its Unified Payments (UP) platform, allowing for streamlined operations across multiple regions. Led by Endeit Capital and supported by existing investors, this series of investments has propelled Nomupay's funding to nearly $90 million. With robust AI tools for data management, Nomupay is poised for significant growth, projecting profitability by 2025 while addressing complex market needs.

  • FTV Capital Closes $4B Fund! 🚀: FTV Capital has just announced a significant fundraising achievement, raising approximately $4.05 billion aimed at boosting its B2B fintech investments. Founded in 1998, FTV has now amassed over $10.2 billion in capital since inception, with plans to allocate equity checks ranging from $20 million to $300 million. This latest round backs two new funds: FTV VIII and the smaller investment-focused FTV Ascend. As fintech funding sees a decline, FTV aims to provide vital capital to high-growth companies, solidifying its position in the competitive fintech landscape.

Thanks for reading and have a relaxing Sunday,

— The Money Explored team