All Access

Fintech Deals

Standard

Fintech Deals Alerts

Alert

Fintech Deals Thought Bubble

Thought Bubble

mustard

BFD Expert Voices - Private Credit

BFD Expert Voices

The big merge between crypto and what the industry calls traditional finance is underway, Axios' Crystal Kim writes.

Why it matters: The awkward marriage between crypto and traditional financial firms is built around what each can provide the other — with one side seeking fresh capital and legitimacy and the other pursuing new business and better tech.

Details: The slate of spot bitcoin ETF applications blurs the line between crypto exchanges and money managers.

There are the banks' enterprise blockchain projects and the folks who have put U.S. treasuries and money market funds on chain.

Larry Fink, chief of BlackRock — the world's largest asset manager — said almost a year ago that tokenization could speed settlement times and cut fees, a vision of the future of wealth management.

For those who park at BlackRock these days, Coinbase and Kraken are already involved on the back end, set to provide custodial, prime broker and indexing services for its crypto offerings.

The other side: SEC chair Gary Gensler has insisted on the separation of custody and exchange functions, which some people think could hamper the chances of spot bitcoin ETF approval.

Yes, but: The Financial Stability Board, an international body that monitors the global financial system, this week issued a report that supports the crypto industry's main argument:

Regardless of where in the world crypto firms perform a function equivalent to one in traditional finance, they should be subject to the same rules.

"Same activity, same risk, same regulation."

1. The big merge is coming

Illustration of a Venn diagram made of a quarter and a pixelated coin.

Data: Yahoo! Finance; Chart: Axios Visuals

Nov. 27 — Berkshire Hathaway sold its 2.5% stake in Paytm last week, taking a more than 35% loss on its investment in the Indian mobile payments firm, Ryan wrote.

Why it matters: The sale follows a string of other foreign investors' divestments, as Paytm shares have plummeted since its November 2021 IPO.

Go deeper: Read Monday's newsletter, plus Monday's Pro Rata on a Hall & Oates lawsuit putting a spotlight on the secretive world of music rights deals.

2. Berkshire sells off Paytm stake

Nov. 28 — HSBC made a series of executive appointments for its embedded finance joint venture slated to launch in the first half of 2024, Ryan wrote.

Why it matters: The joint venture's goal is to expand HSBC's access to trade and e-commerce clients.

Go deeper: Read Tuesday's newsletter, plus Tuesday's Pro Rata on the European Commission objecting to Amazon's proposed $1.7 billion acquisition of Roomba maker iRobot.

3. HSBC's embedded finance ambitions

Illustration of two people shaking hands on a giant stack of money. 

Nov. 28 — BNPL companies are getting a boost amid a report showing that consumers flocked to the payment method during Thanksgiving weekend, Lucinda wrote.

Why it matters: BNPL is most certainly alive, and it will also most certainly receive more CFPB scrutiny.

4. BNPL's weekend boom

Illustration of mashed potatoes on a plate with dollar sign shaped gravy

Nov. 29 — Property management software provider Revela raised $9 million in Series A financing led by FirstMark Capital, the company told Ryan exclusively.

Why it matters: Property managers need better tools to oversee operations and communicate with residents and vendors, while property owners need better data and financing options.

Go deeper: Read Wednesday's newsletter, plus Wednesday's Pro Rata on renewed discussions around Mark Cuban's ambitions after agreeing to sell the Dallas Mavericks. Spoiler: He has no plans to run for elective office.

5. $9M property management exclusive

Nov. 30 — Tacora, a venture-focused debt fund founded by a Third Point alumna, will put up to $30 million into Exectras, an SMB-focused fintech, Lucinda reported exclusively.

Why it matters: Although deals remain rare since SVB's implosion, startup demand for debt remains high.

Go deeper: Read Thursday's newsletter, plus Thursday's Pro Rata on speculation surrounding Cigna's merger talks with Humana.

6. Peter Thiel-backed debt

Illustration of a hand cursor holding four credit cards.

Happy Friday, Fintech readers. Research associate Natalie Breymeyer here with your weekly digest.

🌴 Axios BFD is coming to Miami on Feb. 13. Request your invitation. 

🩰 Natalie is going to Seattle this weekend to see the Pacific Northwest Ballet perform "The Nutcracker."

A thank-you to George Moriarty and Rob Reinalda for today's edits.

And thanks to you for reading. Please tell your fintech friends about this newsletter. They can sign up here.

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

December 01, 2023

1. The big merge is coming