My colleague John White mentioned it greatest in our e-newsletter yesterday: the week that felt like a yr. Books will likely be written and flicks will likely be made in regards to the final seven days because it was essentially the most dramatic week in finance because the monetary disaster of 2008. The excellent news this week was that the finance world didn’t disintegrate and we had no financial institution failures between Monday and Friday, though First Republic wanted a dramatic money infusion. The outdated Silicon Valley Financial institution might be the most secure financial institution within the nation proper now however no purchaser has been discovered as of but. Beneath is my weekly fintech information roundup.
SVB and Signature: The massive non-bailout from Fintech Nexus – The information got here final Sunday evening that the federal government would assure all deposits held at Silicon Valley Financial institution, and, oh, by the best way, Signature Financial institution has been closed by regulators.
Large Banks swoop in to save lots of First Republic from Fintech Nexus – To make sure we didn’t lose a fourth financial institution this month eleven of the biggest banks within the nation despatched a complete of $30 billion to First Republic Financial institution.
Mortgages, Wine and Renovations: Silicon Valley Financial institution’s Deep Tech Ties from The New York Instances – No different financial institution had nearer ties to tech, together with fintech, than Silicon Valley Financial institution. Good piece on how deep these ties went.
How Goldman’s Plan to Shore Up Silicon Valley Financial institution Crumbled from The Wall Avenue Journal – Whereas Silicon Valley Financial institution collapsed out of the blue the seeds have been sown in late February when SVB executives went to Goldman Sachs in search of recommendation on elevate new capital.
Fail or sale? What may very well be subsequent for stricken Credit score Suisse from CNBC – Whereas in a roundabout way associated to the large US financial institution failures, main Swiss financial institution, Credit score Suisse, is struggling to outlive. It wanted large assist from the Swiss central financial institution and there was chatter during the last couple of days that its home rival UBS may purchase all or a part of the financial institution.
Neobanks report a windfall of recent shoppers in wake of SVB shutdown from American Banker – There have been some fintech vibrant spots this week as those who serve enterprise shoppers noticed an uptick in new accounts. NorthOne, Mercury and Meow all added new shoppers at a quicker price than regular.
Tether’s Stablecoin Market Cap Now Double USDC After SVB Chaos from Decrypt – Within the crypto house Tether is wanting like the large winner for the week as Circle’s USDC had $3.3 billion in reserves at Silicon Valley Financial institution. Now USDT has roughly twice the market cap of USDC.
Stripe slashes valuation to $50 billion in new $6.5 billion funding spherical from CNBC – Oh yeah, Stripe raised some cash. On a standard week, this may be our prime story as Stripe raised a staggering amount of cash, $6.5 billion, within the largest non-public fintech elevate ever on this nation. Their valuation nearly halved to $50 billion however most individuals suppose that could be a win in right now’s surroundings.
FedNow instantaneous funds platform will likely be stay in July, central financial institution says from American Banker – The Federal Reserve introduced this week that their long-awaited instantaneous cost system, FedNow, will launch in July. Whereas a pilot program has been going since final September with 120 contributors (together with some fintechs), a certification program will open subsequent month to assist corporations put together for the launch.
Whether or not Personal Or Public, The U.S. Wants A Digital Greenback from Forbes – Dave Birch ruminates on the occasions of the previous week and makes the case for stablecoins, particularly a digital greenback, being a approach to stabilize the monetary system.
Each Thursday at 5pm ET the Fintech Nexus information group and a particular visitor focus on the information of the week in fintech. Beneath is the video we posted to YouTube of this week’s present. You may as well take heed to the present in podcast format.
