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💥Can BNY Mellon (NYSE: BK) make money from Cryptocurrency Services?💥
BNY Mellon (BK) executives are betting cryptocurrency services can rescue their bank’s revenue growth.
November 13, 2022
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Bank of New York Mellon (BK) became the first of America’s eight systematically important banks to become a custody manager for cryptocurrency and other digital assets this fall, Reuters reports. To elaborate, the New York State Department of Financial Services gave BNY Mellon permission to hold digital currencies in its custody platform.

Consequently, BNY Mellon’s Digital Asset Custody platform is now live. BNY Mellon is building the platform with Chainlysis and Fireblocks. Chainanalysis monitors on-chain transactions and provides Know Your Transaction (KYT) and Know Your Virtual Asset Service Provider (VASP) or KYV services. Asset custody managers need KYT and KYV to deter money laundering and other illegal actions.

Fireblocks builds wallet infrastructure for cybersecurity, scalability and innovation. Thus, Fireblocks integrates BNY Mellon’s with the blockchain with multi-party computation (MPC).

BNY Mellon needs Digital Asset Custody Services

Currently, BNY Mellon (NYSE: BK) manages digital assets in 21 funds. Those funds include the Grayscale Bitcoin Trust and other crypto funds.

The Grayscale Bitcoin Trust (OTC: GBTC) had $13.191 billion in assets under management on 8 November 2022. Grayscale is the only fund, BNY Mellon currently supports, but they plan pure crypto funds.

BNY Mellon’s management believes custody of digital assets is a growing business. BNY Mellon claims to be the world’s largest asset custodian, with over $43 trillion in traditional assets under custody and $2 trillion payments cleared and settled daily.

The crypto markets are enormous. CoinMarketCap estimates the entire global Crypto Market Capitalization of was $811.13 billion on 9 November 2022. Plus, the Total Cryptocurrency 24-Hour Market Volume was $180.64 billion on 9 November 2022.

The Growing Cryptocurrency Market

Moreover, the most popular cryptocurrency Bitcoin (BTC) had a $311.926 billion Market Cap and a 100.492 billion 24-Hour Market Volume on 9 November 2022. Plus, the second-largest cryptocurrency Ethereum (ETH) had a Market Capitalization of $141.49 billion and a 24-Hour Market Volume of $38.667 billion on 9 November 2022.

The value of other digital assets is growing. For example, the 24-Hour Market Volume for all stablecoins was $172.33 billion on 9 November 2022. Stablecoins comprised 95.4% of the Global Cryptocurrency 24-Hour Market Volume on 9 November 2022. Stablecoins are popular because they are digital assets make payments in fiat currencies such as the US Dollar.

Can BNY Mellon (BK) Cash in on Stablecoins?

The most popular stablecoin, Tether (USDT), had a Market Capitalization of $69.534 billion and a 24-Hour Market Volume of $111.945 billion on 8 November 2022. Tether’s popularity is high because of the growing strength Tether makes payments in US dollars.

I think stablecoins could be an enormous opportunity for BNY Mellon (BK) because stablecoin operators hold the fiat currency they use in trust accounts and payment systems. Stablecoin holdings can be enormous. For example, Tether held $66.409 billion in assets (mostly US Treasury bills) on 30 June 2022.

Similarly, in September 2022, they claim another popular stablecoin Binance USD (BUSD) had $22 billion in net assets. Those assets comprised $5.34 billion US Treasury Debt, $14.32 billion in US Treasury Collateralized Repurchase Agreements, and $1.59 billion in cash deposits.

Stablecoins are an enormous business. Notably, CoinMarketCap estimates stablecoins accounted for 95.4% of the total crypto 24-Hour market volume on 9 November 2022. BNY Mellon can cash in stablecoins by offering custody services for stablecoin operators or offering its own stablecoin.

I think Stablecoins resemble checks and checking accounts. For example, Binance now pays interest on its BUSD stablecoin. Hence, stablecoins could be natural products for banks to offer. Another way BNY Mellon could profit from stablecoins is to buy stablecoin organizations such as Circle (the company behind the popular USD Coin (USDC) stablecoin), Tether, or Binance.

Can BNY Mellon cash in on DeFi and Central Bank Digital Currencies?

Finally, decentralized finance (DeFi) digital assets had a 24-hour Market Volume of $8.07 billion on 9 November 2022, ConMaketCap estimates.

Defi comprises digital assets built for finance, such as decentralized autonomous organizations (DAOs) and tokens issued by financial services platforms. DeFi accounted for just 4.47% of the Global 24-Hour Market Crypto Market Volume on 9 November 2022.

Interestingly, a DAO is a digital corporation they build in the blockchain. DAO’s issue tokens that serve as investments similar to stock. Some DeFi platforms sell tokens linked to lending and other financial services. Thus, the digital asset market is enormous and growing.

A final digital assets opportunity for BNY Mellon (NYSE: BK) is Central Bank Digital Currencies (CBDCs). A CBDC is a cryptocurrency or stablecoin a central bank, such as the Bank of England issues. I think CBDC could be popular because Mr. Market and consumers will treat them as fiat currencies. For example, people could view a Bank of England CBDC as pound sterling.

The New York Federal Reserve is researching and testing a wholesale CBDC (wCBDC) for use by banks and other financial institutions through its Project Cedar. The Fed has made no decision on a CBDC, yet it is developing one. I think there could be an enormous demand for a US Dollar wCBDC or CBDC because people could view it as a Digital Dollar.

Such demand could develop because the US Dollar is the global reserve currency and the world’s strongest currency. A reserve currency is the fiat currency banks and other institutions use for international transactions. One reason for BNY Mellon’s custody is its home in the USA, where it can convert assets into dollars and dollars into assets.

A Fed CBDC could grow BNY Mellon’s custody business because many people and institutions will want to convert assets into digital dollars.

Can BNY Mellon Reverse Negative Revenue Growth?

It is easy to see why BNY Mellon’s management is entering new markets. The bank is suffering from negative revenue growth.

For example, BNY Mellon’s revenue growth shrank by -16.34% in the quarter ending on 30 September 2022. Conversely, the revenues grew by 7.58% in the quarter ending on 30 June 2022.

Consequently, BNY Mellon’s quarterly revenues fell from $4.008 billion on 30 September 2021 and $4.229 billion on 30 June 2022 to $3.353 billion on 30 September 2022. I think the strong dollar and the economic chaos unleashed by the Ukraine are hurting BNY Mellon’s business, so managers are seeking additional sources of revenue.

BNY Mellon is Losing Money

Bank of New York Mellon (NYSE: BK) is losing money as its revenues fall.

For instance, BNY Mellon (NYSE: BK) reported a quarterly operating loss of -$296 million on 30 September 2022. The quarterly operating income fell from $1.095 billion on 30 June 2022 and $1.162 billion on 30 September 2021.

Similarly, Mellon’s quarterly gross profit fell from $4.035 billion on 30 September 2021 and $4.254 billion on 30 June 2022 to $3.353 billion on 30 September 2022. Thus, BNY Mellon needs more revenue, income, and profit that digital assets could provide.

Conversely, BNY Mellon’s quarterly operating cash flow grew from $2.829 billion on 30 September 2021 to $3.429 billion on 30 June 2022 to $4.99 billion on 30 September 2022. In contrast, BNY Mellon’s quarterly ending cash flow fell from $101 million on 30 September 2021 to $82 million on 30 September 2022.

BNY Mellon is a Cash-Rich Company

BNY (BK) is a cash-rich company. For example, BNY Mellon reported a quarterly ending cash flow of $9.544 billion on 30 June 2022.

Impressively, BNY Mellon reported a quarterly financing cash flow of $30.095 billion on 30 June 2022. There were also quarterly investing cash flows of $19.931 billion on 31 March 2021 and $9.306 billion on 30 September 2022.

However, BNY Mellon pays off enormous amounts of debt. It reported quarterly financing cash flows of -$14.538 billion on 30 September 2022 and -$24.127 billion on 31 March 2022. Impressively, BNY Mellon’s total debts fell from $63.785 billion on 30 September 2021 to $28.177 billion on 30 September 2022.

Another reason BNY Mellon is moving into digital assets is that it has less cash. For instance, the cash and short-term investments fell from $200.119 billion on 30 September 2021 to $162.157 billion on 30 September 2022.

I consider BNY Mellon a value investment because it has enormous amounts of cash, growing cash flow, and shrinking debts. It’s also entering new markets such as digital assets custody that could generate enormous amounts of cash.

What Value does BNY Mellon (BK) have?

Moreover, BNY Mellon’s value is shrinking. For example, the total assets fell from $470.533 billion on 30 September 2021 to $427.953 billion on 30 September 2022.

Hence, another reason BNY Mellon (BK) is entering digital asset management is shrinking value. However, I think BNY Mellon is a value investment. This is a company with $427.953 billion in assets and a $42.10 stock price on 9 November 2022.

Plus, BNY Mellon pays an impressive dividend. For instance, BK Mellon has scheduled nine 37₵ dividends between 10 November 2022 and 12 November 2024. Overall, BNY Mellon shares delivered a $1.48 forward dividend and a 3.52% dividend yield on 9 November 2022.

If you are seeking a dividend-paying stock that could profit from cryptocurrencies, stablecoins, CBDCs, and other digital assets, BNY Mellon is worth examining.

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🚀 Big XRPL-AXELAR News! 🌉

DeFi builders are innovating on XRP Ledger.

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🚀 Big News! 🌉

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BNY Mellon , @ripple Custody Partner, Q2 2025 Earnings Call😉
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👀Dr. Robert Malone says RFK Jr. receive👽

Dr. Robert Malone says RFK Jr. received a classified briefing on UFOs, UAPs, and whether they could be interdimensional beings or time travelers.

Malone claims a federal investigator told him "alien encounters" are ramping up—and confirms they’re real.

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👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading
📈The Psychology Of A Market Cycle 📈

It's no where near over folks, I see hope.. 😉

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👀Live Feed Of PYTH Tracking XRP/USD

Check it out live: 👇

https://insights.pyth.network/price-feeds/Crypto.XRP%2FUSD

👉 On the top right hit the "CTRL K" and start typing any ticker, pretty awesome, for a crypto geek like me anyway. 😉

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Pyth is bringing the price of everything to the Global Market Alliance 🔮

Pyth Network is excited to join @OndoFinance's expanding network of financial infrastructure partners, including wallets, exchanges, and custodians, to accelerate the development of on-chain capital markets.

https://x.com/PythNetwork/status/1947690188702159076

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Understanding the Crypto Alt Season

The next altcoin season is poised to ignite the crypto market, promising to turn savvy investors' portfolios into goldmines. As Bitcoin's dominance wanes, a new era of blockchain innovation is dawning—are you ready to ride the wave?

Market behavior often exhibits distinct patterns and cycles. One such phenomenon that has captured the attention of traders and investors alike is the "Alt Season"—a period when alternative cryptocurrencies, or "altcoins," outperform Bitcoin and experience significant price surges.

The concept of market cycles and seasonality is not unique to crypto; it's a well-established principle in traditional financial markets. However, in volatile crypto space, these cycles can be more pronounced and occur with greater frequency.  

In this article, we’ll try to cover these and other topics: 

  1. The nature and characteristics of Alt Seasons
  2. The importance of recognizing market cycles in cryptocurrency trading
  3. Alt Season indicators and how to interpret them
  4. Predictions and speculatins about the next potential Alt Season

What Is Crypto Alt Season?

Crypto Alt Season, short for "Alternative Cryptocurrency Season," refers to a period in the cryptocurrency market when alternative cryptocurrencies (altcoins) significantly outperform Bitcoin in terms of price appreciation. During an Alt Season:

  1. Many altcoins experience rapid price increases.
  2. The market share of altcoins grows relative to Bitcoin.
  3. Trading volume for altcoins typically increases.
  4. Investor attention shifts from Bitcoin to various altcoin projects.

An Alt Season can last anywhere from a few weeks to several months. It's often characterized by increased risk appetite among investors, who are willing to allocate more capital to smaller, potentially higher-risk crypto projects in search of higher returns.

Is Crypto Season the Same As Crypto Alt Season?

While related, Crypto Season and Crypto Alt Season are not exactly the same:

  1. Crypto Season:
    • Refers to a broader bullish period in the entire cryptocurrency market.
    • Typically includes price appreciation for both Bitcoin and altcoins.
    • Can be longer in duration, sometimes lasting for many months or even a year or more.
    • Often starts with a Bitcoin rally, followed by increased interest in the broader crypto market.
  2. Crypto Alt Season:
    • Specifically focuses on the outperformance of altcoins compared to Bitcoin.
    • Can occur within a broader Crypto Season but is more narrowly defined.
    • Generally shorter in duration than a full Crypto Season.
    • May happen towards the latter part of a broader Crypto Season, as investors seek higher returns in smaller cap coins.

Key Differences:

  • Scope: Crypto Season encompasses the entire market, while Alt Season focuses on altcoins.
  • Duration: Crypto Seasons are generally longer than Alt Seasons.
  • Market Dynamics: In a Crypto Season, Bitcoin often leads the rally, while in an Alt Season, altcoins outperform Bitcoin.

It's important to note that these terms are not officially defined and can be subject to different interpretations within the cryptocurrency community. However, understanding the distinction can help investors and traders better analyze market trends and potential opportunities in different segments of the crypto market.

What Is Alt Season Indicator?

The Alt Season Indicator is a tool used by cryptocurrency traders and investors to gauge whether the market is entering or currently in an "Alt Season" — a period when altcoins are outperforming Bitcoin. While there isn't a single, universally accepted Alt Season Indicator, several metrics and tools are commonly used to assess the likelihood of an Alt Season. Here are some key aspects of Alt Season Indicators:

Bitcoin Dominance

One of the most widely used indicators is Bitcoin Dominance, which measures Bitcoin's market capitalization as a percentage of the total cryptocurrency market cap.

  • Calculation: (Bitcoin Market Cap / Total Crypto Market Cap) * 100
  • Interpretation: A declining Bitcoin Dominance often signals a potential Alt Season, as it indicates that capital is flowing from Bitcoin into altcoins.
  • Threshold: Some traders consider Bitcoin Dominance below 50% as a potential indicator of an Alt Season.

Altcoin Market Cap Ratio

This indicator compares the total market capitalization of altcoins to Bitcoin's market cap.

  • Calculation: Total Altcoin Market Cap / Bitcoin Market Cap
  • Interpretation: An increasing ratio suggests growing strength in the altcoin market relative to Bitcoin.

Top 10 Altcoins Performance

This indicator tracks the performance of the top 10 altcoins by market cap (excluding Bitcoin) compared to Bitcoin over a specific period.

  • Calculation: Average percentage gain of top 10 altcoins vs. Bitcoin's percentage gain
  • Interpretation: When a majority of top altcoins consistently outperform Bitcoin, it may indicate an Alt Season.

Alt Season Index

Some crypto data platforms offer a proprietary Alt Season Index, which combines various metrics to provide a single score indicating the likelihood of an Alt Season.

  • Scale: Often presented as a percentage or a 0-100 score
  • Interpretation: Higher scores (e.g., above 75%) suggest a higher probability of an ongoing Alt Season

Trading Volume Ratios

This indicator compares the trading volumes of altcoins to Bitcoin's trading volume.

  • Calculation: Total Altcoin Trading Volume / Bitcoin Trading Volume
  • Interpretation: An increase in this ratio may indicate growing interest in altcoins, potentially signaling an Alt Season.

Important Considerations:

  1. No single indicator is foolproof. Traders often use a combination of indicators for a more comprehensive analysis.
  2. Market conditions can change rapidly, and past patterns don't guarantee future results.
  3. Different traders may use different thresholds or interpretations of these indicators.
  4. The crypto market's evolving nature means that indicators may need to be adjusted over time to remain relevant.

Understanding and effectively using Alt Season Indicators can help traders and investors make more informed decisions about allocating their resources between Bitcoin and altcoins. However, it's crucial to combine these indicators with broader market analysis and risk management strategies.

Alt Seasons: Historical Perspective, Current Situation, and Future Predictions

Previous Altcoin Seasons

In crypto, two periods stand out as particularly significant for altcoins. These "alt seasons" saw unprecedented growth and interest in cryptocurrencies beyond Bitcoin, reshaping the landscape of digital assets.

The 2017-2018 Alt Season

Duration: December 2017 to January 2018

Context:

  • Bitcoin (BTC) experienced its most remarkable bull run to date, reaching nearly $20,000 in December 2017.
  • This surge in Bitcoin's price and public interest created a ripple effect throughout the crypto market.

Key Developments:

  1. Proliferation of New Coins: The success of Bitcoin catalyzed the launch of numerous new cryptocurrencies.
  2. Investor Frenzy: Buoyed by Bitcoin's success, investors eagerly sought the "next Bitcoin," pouring capital into various altcoins.
  3. ICO Boom: This period saw a surge in Initial Coin Offerings (ICOs), with many projects raising millions in a matter of hours or days.
  4. Market Expansion: The total cryptocurrency market cap reached unprecedented levels, briefly surpassing $800 billion in January 2018.

Notable Altcoins: Ethereum (ETH), Ripple (XRP), and Litecoin (LTC) saw significant price increases during this period.

The 2020-2021 Alt Season

Duration: December 2020 to April 2021

Context:

  • Bitcoin broke its previous all-time high, surpassing $60,000 in March 2021.
  • The COVID-19 pandemic had accelerated digital adoption and increased interest in alternative investments.

Key Developments:

  1. DeFi Explosion: Decentralized Finance (DeFi) projects gained massive traction, with many tokens seeing exponential growth.
  2. NFT Boom: Non-Fungible Tokens (NFTs) entered the mainstream, driving interest in blockchain-based digital assets.
  3. Institutional Adoption: Major companies and institutional investors began adding cryptocurrencies to their balance sheets.
  4. Technological Advancements: Many altcoins introduced innovative features, scaling solutions, and use cases.

Notable Altcoins: Ethereum (ETH) reached new highs, while projects like Binance Coin (BNB), Cardano (ADA), and Polkadot (DOT) saw remarkable growth.

Comparative Analysis: Both alt seasons shared some common characteristics:

  • They were preceded by significant Bitcoin price rallies.
  • New projects and tokens gained rapid popularity and valuation.
  • Retail investor participation increased dramatically.
  • The overall cryptocurrency market capitalization reached new heights.

However, the 2020-2021 alt season was marked by greater institutional involvement and a broader range of technological innovations, particularly in DeFi and NFTs.

Is It Alt Season?

Based on the indicators discussed above, it's not currently an altcoin season. The Altcoin Season Index at 41 and Bitcoin's market dominance at 61.3% both suggest that Bitcoin is still the dominant force in the crypto market at this time.

When Is Alt Season?

Based on the information we could gather from various experts, we can analyze the predictions for the next altcoin season as follows:

  • Based on the latest analysis from experts and on-chain data, here’s what we know about the next altcoin season:

     

    Current Status (August 2025):

     

    • The altcoin season index—a metric that signals how many altcoins outperform Bitcoin—currently sits around 37. For a “full-blown” alt season, it typically needs to rise above 75.

    • Bitcoin dominance is approximately 61-62%. Historically, dropping below 60% often coincides with a rapid rotation into altcoins and the start of alt season.

     

    Key Indicators to Watch:

     

    • Altcoin Season Index (ASI): Above 75 signals a true altcoin season.

    • Bitcoin Dominance: A move below 60% usually marks the transition; sub-50% dominance is associated with peak alt season inflows.

    • Market Activity: Increasing volumes in major altcoins and Layer 1s, meme coin rallies, and spikes in DeFi activity are early warning signs.

    • Ethereum Outperformance: When ETH surges relative to BTC, this historically precedes broader altcoin rallies.

     

    Expert Predictions for 2025:

     

    • Analysts point to a pivotal window for alt season starting as early as August 2025 and extending through the fall, with many expecting true acceleration of altcoin gains if Bitcoin’s price consolidates and capital rotates further into alts.

    • There is strong consensus that macroeconomic catalysts, such as potential U.S. interest rate cuts and ongoing Bitcoin ETF momentum, could fuel a major altcoin rally in late 2025 if positive conditions persist.

    Summary Table: Key Factors & Targets

    SignalAlt Season TriggerStatus (Aug 2025)
    Altcoin Season Index (ASI)>75 ~37
    Bitcoin dominance<60% ~61–62% (near trigger)
    Altcoin trading volumeSustained surge across many alts Rising, but not explosive
    Ethereum outperformanceETH/ BTC breakout, >$3,700 Near, ETH ~$3,500
    Market narrativesAI, DeFi, meme coins, new L1 inflows Strengthening
     

    Bottom Line:
    Most analysts agree the groundwork for altcoin season in 2025 is building. We are currently in a transition phase: if Bitcoin dominance continues to fall and the Altcoin Season Index rises above 75, a full-fledged alt season could ignite during the second half of 2025. Monitor these key indicators to stay ahead as market momentum shifts from Bitcoin into a broader range of altltcoins.

Key Factors to Consider

  • Technology: Look for coins with innovative solutions to existing blockchain challenges.
  • Adoption: Consider projects with growing partnerships and real-world use cases.
  • Market Position: Established coins with room for growth may offer a balance of stability and potential returns.
  • Tokenomics: Understanding supply dynamics can help predict potential price movements.

It's crucial to conduct thorough research before investing. The cryptocurrency market is highly volatile, and past performance doesn't guarantee future results. Always invest responsibly and within your risk tolerance.

How to Win in Next Alt Season?

Capitalizing on the next altcoin season requires a strategic approach. Here's how to maximize potential gains:

  • Research and Diversification: Thoroughly research potential investments, analyzing both fundamentals and technical aspects to identify promising altcoins. Diversify your holdings across different projects to mitigate risk and maximize potential returns. Don't put all your eggs in one basket.
  • Strategic Timing: Utilize technical analysis tools like support/resistance levels and RSI to pinpoint optimal entry and exit points. Monitor market sentiment and price trends to make informed decisions. A clear entry and exit strategy is crucial for managing risk and maximizing profits during volatile periods.
  • Newer Projects: Consider participating in newer altcoin projects. This provides early access to potentially high-growth projects at discounted prices. Research upcoming defi projects with use cases, focusing on innovative projects with strong potential. Investing early can yield substantial returns as the project develops.

Conclusion

In summary, an altcoin season, marked by significant price increases in non-Bitcoin cryptocurrencies, may be on the horizon.  This potential surge could be driven by investors seeking higher returns in smaller-cap cryptocurrencies, technological advancements in altcoin projects, increased blockchain adoption, and the transition of projects from speculative ventures to real-world applications

Remember, while the potential for significant gains exists during an altcoin season, the cryptocurrency market remains highly volatile. Always invest responsibly.

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PYTH: We'll Always Have Coldplay

Welcome back to The Epicenter, where crypto chaos meets corporate cringe.

But surprisingly, crypto has not been the most chaotic corner of the internet as of late.

That honor goes to the startup Astronomer, whose CEO’s cheating scandal broke the web in a glorious meme-fueled media frenzy. The company’s damage control? Hiring Gwyneth Paltrow as a “temporary spokesperson.” Do we think they’re grasping at straws or setting a new standard for PR?

Meanwhile, the markets didn’t blink. BTC is still flexing near its all-time highs. Michael Saylor’s bringing a bitcoin-adjacent money-market product to Wall Street. A pharma company just earmarked $700M to stack BNB, and analysts are calling time of death on the four-year crypto cycle. It’s a steady boom now, kittens.

A few things that are also worth noting: Winklevoss vs. JPMorgan, Visa’s take on stablecoins, and Robinhood’s Euro drama that defies the chillness of eurosummer.

Let’s get into it 👇

⛓️ The On-Chain Pulse: What’s Happening on the Front Lines of Finance

This week’s biggest news in crypto and all things digital assets

🗣️ Word on the Street: What the Experts are Saying

Stuff you should repost (or maybe even cough reword and take credit for)

Meme of the Week

🏦 Kiss my SaaS: What’s Changing the Game for Fintech

Things you should care about if you want to impress your coworkers

Closing Thoughts

From meme-fueled PR stunts to Bitcoin-backed money-market funds, this week reminded us that markets move fast—and headlines move faster. With Wall Street automating itself, fintechs beefing with banks, and even your smartphone becoming a miner, anything is possible. Stay curious, stay cynical, and as always—stay sharp and stay liquid. We’ll see you back here in two weeks.

— The Epicenter, powered by Pyth Network

 

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

 

Read full Article
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4 Fintech Companies 💸& Things To Know About 🤔

The fintech revolution is reshaping the way we manage, invest, and move money, breaking down traditional barriers and empowering individuals worldwide. As financial technology continues to evolve at a rapid pace, a select group of innovative companies are leading the charge by offering groundbreaking solutions that redefine banking, payments, and digital assets. Whether you’re a savvy investor, an industry professional, or simply curious about the future of finance, discovering these trailblazing fintech companies is essential to understanding today’s dynamic financial landscape.

 

  1.  Alina Invest - The AI Wealth Manager for GenZ Women

Alina is aimed at women under 25 who identify as beginner investors. They're an SEC-registered investment advisor that charges $120/year for membership. The service "buys and sells for you" and gives up notification updates of recent transactions like a wealth manager would.

👉 Getting people to invest early is crucial to building long-term wealth. One thing that holds them back is a lack of confidence and experience. Being targetted "for beginners" and people who live on TikTok should appeal. I love the sense of "we're buying and selling for you." Funds always do that, but making it an engagement mechanic is very smart. The risk here is that building a wealth business will take decades for the AUM to compound. But the next generations, Wealthfront or Betterment, will look something like Alina.

2. Blue layer - The Carbon project funding platform

Bluelayer allows Carbon project developers to take from feasibility studies to issuing credits, tracking inventory, and managing orders. Developers of reforestation, conservation, direct air capture, and other projects can also directly report to industry registries. 

👉 Carbon investing and tax credits are heavily incentivized but need transparent data. By focusing on the developers, Bluelayer can ensure the data, reporting, and credits lifecycle is all managed at the source. This is smart.

3. Akirolabs - Modern Procurement for enterprise

Akiro is a "strategic" procurement platform aiming to help enterprise customers identify risks, value drivers, and strategic levers before issuing an RFP. It aims to bring in multiple stakeholders for complex purchasing decisions at multinationals. 

👉 Procurement is a great wedge for multinational corporate transformation. Buying anything in an enterprise that uses large-scale ERPs is a nightmare of committees and spreadsheets. Turning an oil tanker-sized organization around is difficult, but the right suppliers can have a meaningful impact in the short term. That only works if you can buy from them. Getting people on the same page with a single platform is a great start.

4. NeoTax - Automated Tax R&D Credits

NeoTax allows companies to connect their engineering tools to calculate available tax advantages automatically. Once calculated, the tax fillings are clearly labeled with supporting evidence for the IRS.

👉 AWS and GCP log files and data are a goldmine. Last week, I covered Bilanc, which uses log files to figure out per-account unit economics. Now, we calculate R&D tax credits. The unlock here is LLM's ability to understand unstructured data. The hard part is understanding the moat, but time will tell.

In an era where technology and finance are increasingly intertwined, these four fintech companies stand out as catalysts for positive change. By driving progress in digital payments, asset management, lending, and decentralized finance, they are not only making financial services more accessible and efficient—they are also paving the way for a more inclusive and empowered global economy. Staying informed about their innovations can help you seize new opportunities and take part in the future of finance.

 

👀Things to know 👀

 

PayPal issued low guidance and warned of a “transition year.” The stock is down 8% in extended trading despite PayPal reporting a 9% growth in revenue and 23% EBITDA. Gross profit is down 4% YoY. PayPal's total revenues were $29Bn for the year

Adyen reported 22% revenue growth and an EBITDA margin of 46% for the full year. Adyen's total revenues were $1.75bn for the full year. The margin was down from 55% the previous year, impacted by hiring ahead of growth.

🤔 PayPal’s Braintree (unbranded) is losing market share in the US, while Adyen is winning it. eCommerce is growing ~9 to 10% YoY, and PayPal’s transaction revenue grew by 6.7%. The higher interest rate environment meant interest on balances dragged up the total revenue figure. Their core business is losing market share. Adyen is outgrowing the market by ~12%.

🤔 The PayPal button (branded) is losing to SHOP Pay and Apple Pay. The branded experience from Apple and Shopify is delightful for users; it’s fast and helps with small details like delivery tracking. That experience translates to higher conversion (and more revenue) for merchants.

🤔 The lack of a single global platform hurts PayPal, but it helps Adyen. In the earnings call, the new CEO admitted their mix of platforms like Venmo, PayPal, and Braintree are holding them back. They aim to combine and simplify, but that’s easier said than done.

🤔 Making a single platform from PayPal, Venmo, and Braintree won’t be easy. There’s a graveyard of payment company CEOs who tried to make “one platform” from things they acquired years ago. It’s crucial if they’re going to grow that they get their innovation edge back. Adyen has one platform in every market.

🤔 PayPal’s UK and European acquiring business is a bright spot. The UK and EU delivered 20% of overall revenue, growing 11% YoY. Square and Toast don’t have market share here, while iZettle, which PayPal acquired in 2018, is a strong market player. Overall though, it’s yet another tech stack and business that’s not part of a single global platform.

The two banks provided accounts to UK front companies secretly owned by an Iranian petrochemicals company. PCC has used these entities to receive funds from Iranian entities in China, concealed with trustee agreements and nominee directors. 

🤔 This is the headline every bank CEO fears. Oof. Shares of both banks have been down since the news broke, but this will no doubt involve crisis calls, committees, appearing in front of the regulator, and, finally, some sort of fine.

🤔 The "risk-based approach" has been arbitraged. A UK company with relatively low annual revenue would look "low risk" at onboarding. One business the FT covered looked like a small company at a residential address to compliance staff. They'd likely apply branch-level controls instead of the enterprise-grade controls you'd see for a large corporation. 

🤔 Hiring more staff won't fix this problem; it's a mindset and technology challenge. In theory, all of the skill and technology that exists to manage risks with large corporate customers (in the transaction banking divisions) are available to the other parts of a bank. In practice, they're not. Most banks lack a single data set and the ability for compliance officers in one team to see data from another part of the org. Getting the basics right with data and tooling is incredibly hard and will involve a multi-year effort. 

🤔 These things are rarely the failure of an individual or department; the issue is systemic. While two banks are named in this headline, the issue is everywhere. Banks need more data and better data to train better AI and machine learning. That all needs to happen in real-time as a compliment to the human staff. Throwing bodies at this won't solve the visibility issue teams have.

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