Kiffmeister’s #Fintech Daily Digest (09/21/2021)

Coinbase Drops Lend Product Plans After SEC Lawsuit Threat

Coinbase canceled plans to launch Lend, a product designed to deliver high-interest returns on USDC stablecoin holdings. The U.S. Securities and Exchange Commission (SEC) had reportedly threatened to sue the firm if it went ahead with plans to launch the product, as the agency viewed it as a securities offering. The reported threat came following six months of discussions with the agency.  

Coinbase to Invest $500 Million Into Crypto Assets

Coinbase announced that it has committed to invest $500 million of its cash and cash equivalents into a diverse portfolio of crypto-assets, and going forward, it will also allocate 10% of quarterly net income into this same portfolio. Investment allocation will be driven by Coinbase’s aggregate custodial crypto-asset balances which means that its customers will drive its investment strategy. 

U.S.’s Binance Probe Expands to Examine Possible Insider Trading

U.S. investigations into Binance have reportedly expanded, with the Commodity Futures Trading Commission (CFTC) currently examining possible insider trading and market manipulation. As part of the inquiry, U.S. officials have been looking into whether the crypto exchange or its staff profited by taking advantage of its customers. 

Funding for fintechs: patterns and drivers

According to Bank for International Settlements (BIS) staff research, fintech firms have raised over $1 trillion in equity globally since 2010. While the investment landscape was initially quite concentrated, it has become more diverse, both geographically and across market segments. Equity funding for fintechs is higher in countries with more innovation capacity and better regulatory quality. It also increases after the introduction of regulatory sandboxes. Early-stage venture capital investment is higher after merger and acquisition activity by large banks, but not after that by big techs. 

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September 28-30 CordaCon Conference

At the September 28-30 @inside_r3 #CordaCon2021, I’ll be providing an overview of recent retail #CBDC developments. You can register for the event here: https://www.cordacon.com

October 4-6 CBDC Conference

On October 4 I’ll be providing an overview of international work on retail CBDC and evolving thinking on motivations, system design and safeguards at The CBDC Conference. You can register for this and the full three-day (October 4-6) event here: https://www.cbdc-conference.com/index.php