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- 🚀 SEC Launches Crypto Task Force
🚀 SEC Launches Crypto Task Force
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Hey Fintech Explorers—Welcome back to Money Explored, the essential Sunday newsletter to stay ahead in fintech!
January is coming to a close, but fintech news is heating up. This week, we’re diving into major shifts shaking the industry, from a new crypto task force bringing hope for clear regulations to bold moves in the banking sector reshaping the landscape.
Here’s what we’re diving into:
SEC launches a new crypto task force, signalling a brighter future for regulations. 🚀
HSBC shutters Zing, showcasing the risks of bank-led fintech ventures. 🚫
Ally Financial thrives after strategic shifts, including a bold $2.3B deal. 💳
It’s all happening—and that’s just the start...
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Let’s dive in!
🌎 3 Major Stories
Dive into this week’s top Fintech developments.

The Big Story 📰: The U.S. Securities and Exchange Commission (SEC) has launched a new crypto task force aimed at establishing a comprehensive regulatory framework for the burgeoning crypto industry. Led by Commissioner Hester Peirce, the task force will seek to clarify legal definitions, streamline pathways for registration, and improve disclosure protocols while ensuring judicious enforcement. This initiative seeks to provide much-needed stability and transparency to the crypto market amidst rising institutional interest and projected revenues of $9.4 billion by 2025. Importantly, the task force aims to engage with industry stakeholders to create regulations that protect consumers while fostering innovation.
Key Takeaway ⚡️: The creation of the crypto task force signals a significant shift towards a more structured and supportive regulatory environment for digital assets. This could unlock mass adoption and institutional investment that has long been hindered by ambiguity and apprehension about regulatory scrutiny. However, challenges such as jurisdictional overlaps and maintaining trust in a rapidly evolving landscape remain. It is essential for fintech companies and investors to stay informed on how these regulations unfold, as they could reshape the competitive landscape and impact innovation opportunities in the crypto sector moving forward.

The Big Story 📰: HSBC’s ambitious payments app, Zing, launched to fend off fintech competition, is set to shut down just a year after its debut. Developed over two years at a cost of $150 million, Zing was intended to replicate the success of popular fintechs like Wise and Revolut. However, despite initial excitement and a brief spike in user acquisition, Zing failed to make a significant impact in the market. The closure aligns with HSBC's cost-reduction strategy under new CEO Georges Elhedery, leading to job cuts and a strategic retreat from fintech ventures deemed non-essential. Employees attributed the shutdown more to internal politics than to the app's operational performance, revealing a common struggle for bank-affiliated fintechs.
Key Takeaway ⚡️: The closure of Zing underscores the inherent tensions between innovation and corporate governance in traditional banks. It serves as a cautionary tale for other banks looking to venture into fintech—merely investing in new technology isn’t enough; alignment with core business strategies and organizational support is essential. As HSBC shifts its focus back to more established banking services, the fintech sector might see a move toward independent startups that can innovate without the confines of larger institutions. For investors and industry professionals, Zing's demise highlights the volatility and risk that comes with bank-backed fintech projects, emphasizing the importance of effective management and clear strategic priorities.

The Big Story 📰: Ally Financial is basking in the glow of positive financial results after it reported fourth-quarter earnings that exceeded analysts' expectations. The all-digital bank notched an adjusted earnings per share of 78 cents, even though its revenue dipped 2.4% year-over-year to $2.03 billion. CEO Michael Rhodes attributed the strong results to "significant actions," including workforce reductions and strategic shifts in accounting methods. In a bold move to streamline operations, Ally also announced the sale of its credit card business, which has a portfolio of $2.3 billion in receivables, to CardWorks. This deal is expected to refine Ally's focus on core business areas.
Key Takeaway ⚡️: Ally Financial's recent performance illustrates the importance of adaptive strategies in today’s competitive fintech landscape. By downsizing its workforce and shifting its approach to vehicle leasing, Ally is not only managing costs effectively but also enhancing operational efficiency. The sale of its credit card business is a strategic pivot aimed at concentrating efforts where they can drive the highest returns. For investors and fintech professionals, this serves as a compelling case study on the value of agility and focus in achieving financial resilience, particularly in a rapidly evolving marketplace. The anticipated closure of the CardWorks deal further expands opportunities in the near-prime credit sector, potentially setting the stage for enhanced market leadership.
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🔍 What Else We’re Watching
Keep an eye on these evolving Fintech Narratives.
Stargate Project: Trump's AI Bet 💥: Announced with much fanfare, the Stargate project is a bold $500 billion initiative aiming to build US AI infrastructure over four years. Spearheaded by tech giants like SoftBank and OpenAI, it's reminiscent of a New Deal-style push. The goal? To secure a first-mover advantage in the colossal AI landscape. As the project kicks off in Texas, its potential impact on data center investments is significant. However, challenges loom, including trade tensions and criticism from former allies like Elon Musk, who claims funding levels are overstated. Buckle up; this is just the beginning!
Santander Considers UK Exit 🚪: Santander UK, the British arm of Banco Santander, is mulling a strategic review that could lead to its exit from the UK market. This comes 20 years after acquiring Abbey National, as the bank faces lower returns and legal hurdles. While discussions around a sale are in early stages, Santander aims to refocus on growth opportunities in the US, particularly in corporate and investment banking. Despite this potential shift, the bank insists the UK remains a core market, even as it trims its workforce and grapples with declining pre-tax profits.
Crypto.com Unleashes Exchange for US Traders 🇺🇸: Crypto.com, the Singapore-based giant, has launched its new trading platform specifically for U.S. investors. Designed to enhance the trading experience, the Crypto.com Exchange offers over 300 digital assets and 480 trading pairs, all backed by high-security features. Catering to both casual and advanced traders, the platform boasts advanced order types, trading bots for automated strategies, and low latency for institutional clients. This move reinforces Crypto.com’s commitment to becoming a leading USD-supporting cryptocurrency exchange in a rapidly growing market.
💸 Major Money Moves
Tracking big market shifts in Fintech this week.
Databricks Secures $15.3B Boost 🚀: Databricks, the data analytics titan, has successfully closed a whopping $15.3 billion financing round, elevating its valuation to an impressive $62 billion. This figure comprises $10 billion in Series J equity financing and an additional $5.25 billion in debt financed by top-tier banks like JPMorgan and Goldman Sachs. With new backing from Meta as a “strategic investor,” Databricks aims to enhance its AI product offerings and expand its global reach. There’s also speculation about an upcoming IPO, though the company’s CEO hinted that it may not materialize until at least 2025.
Qomodo Secures €13.5M for BNPL Expansion in Italy 🇮🇹: Milan’s Qomodo has raised €13.5 million (about $14.1 million) in a Series A funding round, geared towards enhancing its buy now, pay later (BNPL) solutions and SmartPOS for Italian merchants. In just one year, the company has significantly increased its merchant base to 2,500, while processing millions in transactions. With backing from RTP Global and LMDV Capital, Qomodo’s mission focuses on revolutionizing payment experiences for brick-and-mortar retailers. As Italy embraces digital payment solutions, the potential for BNPL adoption could reshape the shopping landscape.
Open Payments Raises €3M to Boost B2B Payments 💸: Open Payments has successfully secured €3 million in its latest funding round, with major contributions from Industrifonden and existing investors. Founded in 2017, the company focuses on simplifying B2B payments across Europe by integrating multiple banking services. Now poised for expansion, their platform offers cutting-edge features like real-time access to exchange rates and same-day settlement. With plans to triple transaction volumes and double revenue in 2024, they are quickly becoming a leader in the Nordic market. Investors are enthusiastic about their growth trajectory!
Thanks for reading and have a relaxing Sunday,
— The Money Explored team