Advisory Insights: August Edition

The Storyline

The Trump administration signed the GENIUS Act into law, establishing the first comprehensive U.S. regulatory framework for stablecoins and signaling federal support for blockchain-based financial innovation. This landmark legislation provides regulatory clarity that the industry has sought for years, creating a foundation for institutional adoption and mainstream integration of digital assets into the traditional financial system.

Public market activity accelerated with multiple high-profile IPO preparations across the fintech and digital asset sectors. Crypto custodian BitGo and blockchain-based lending platform Figure Technologies both filed for IPOs, capitalizing on renewed investor appetite for digital asset infrastructure and services. Meanwhile, UK-based Starling Bank is exploring a potential NYSE listing to support its global expansion ambitions while simultaneously targeting acquisition of a U.S. lender, specifically seeking an East Coast bank with at least $2 billion in assets after establishing its Delaware subsidiary and hiring bankers.

The banking charter landscape witnessed increased activity as multiple fintechs pursued direct banking relationships. Wise submitted an application to the OCC seeking to establish a non-depository national trust bank in Austin, Texas, which would allow direct connection to Federal Reserve payment systems. Circle formally applied for a national trust bank charter, proposing to establish the First National Digital Currency Bank under OCC regulation. Ripple joined the charter pursuit by applying for a national banking license, demonstrating the strategic shift toward regulated banking infrastructure across the crypto ecosystem.

Fundraising saw several large rounds demonstrating strong investor appetite across fintech segments. Bilt raised $250 million at a $10.75 billion valuation to expand its housing and neighborhood commerce platform, with the round coinciding with severing its partnership with Wells Fargo. Ramp demonstrated continued growth with a $500 million raise at a $22.5 billion valuation to accelerate AI development and build next-generation finance capabilities, following its $200 million Series E at a $16 billion valuation just two months earlier in June. Zero Hash closed a $100 million round at close to a $1 billion valuation, while Agora secured a $50 million Series A and Dakota raised $12.5 million to support its global stablecoin infrastructure expansion.

M&A activity and strategic partnerships accelerated innovation across fintech segments. Xero announced its acquisition of Melio for an upfront consideration of $2.5 billion in cash and equity, with an additional earnout of up to $500 million payable over three years. Coinbase acquired LiquiFi, a leading token-management platform, continuing its expansion beyond core trading services. Thesis acquired Bitcoin rewards platform Lolli, while crypto infrastructure firm Talos acquired blockchain data provider Coin Metrics for over $100 million. Stripe joined forces with Orum to improve real-time payments through enhanced API capabilities. Rain partnered with Toku to launch real-time payroll infrastructure built on stablecoins, enabling employers to pay employees instantly with faster settlement compared to traditional payroll methods.

Digital assets and crypto infrastructure witnessed significant platform expansion and strategic shifts. Circle announced Circle Gateway, providing cross-chain USDC access with unified liquidity and instant transfers across blockchain networks. Robinhood expanded its blockchain ambitions by announcing plans to build its own blockchain on Arbitrum, positioning itself to offer enhanced crypto services. In a notable shift, digital asset custodian Anchorage announced it would stop supporting USDC while continuing to support its proprietary stablecoin USDG.

Product Launches

• Highnote rolled out Instant Payments infrastructure, enabling real-time settlement for embedded finance partners and reducing transaction completion times to seconds.
• Block's Cash App introduced Tap to Pay compatibility for iPhone users, enabling small merchants to accept contactless payments directly through their mobile devices.
• Kraken unveiled Krak, a global peer-to-peer payments app enabling seamless cryptocurrency and fiat transfers across 100+ countries, marking its expansion into mainstream consumer payments.
• Intuit deployed AI agents within QuickBooks that proactively handle bookkeeping tasks, expense categorization, and financial reporting.
• Ramp released AI agents that automatically review and block unauthorized transactions in real-time, enforcing company spending policies before expenses are incurred.
• Coinbase transformed its wallet offering into the "Base App," an integrated platform combining DeFi trading, social features, messaging capabilities, and third-party mini-applications, while simultaneously introducing perpetual futures contracts for U.S. customers to provide leveraged cryptocurrency derivatives trading directly within its consumer platform.
• OpenAI integrated native commerce functionality into ChatGPT, allowing users to complete purchases through conversational AI without redirecting to external checkout pages.
• PayPal launched PayPal World, a unified ecosystem that bridges PayPal and Venmo networks while enabling cross-platform compatibility with international payment systems.

FS Vector Calendar

FS Vector-Hosted Events

• AARMR’s 35th Annual Conference Reception | August 6 | Fort Worth, TX
  
  • You’re invited! Join us during AARMR’s 35th Annual Conference for a reception at Tannahill’s Tavern & Music Hall! Enjoy an evening of live music, craft cocktails & mocktails, delectable bites and great conversation in Fort Worth’s Stockyards Historic District.
  • RSVP Now - Space is limited!
• Batter Up! A Night at the Ballpark Hosted by Telliant, Wipfli & FS Vector | August 18 | Atlanta, GA
  
  • Join us for an evening of baseball, networking, and great conversation! We're hosting a premium viewing experience as the Atlanta Braves take on the Chicago White Sox at Truist Park. Enjoy dinner, drinks, and connecting with fellow fintech professionals in a relaxed setting.
  • Register your interest here, invite to follow

Events FS Vector is attending

• American Association of Residential Mortgage Regulators | August 5-7 | Fort Worth, TX
• Fintech South | August 19-20 | Atlanta, GA
• JAM FINTOP Conference | September 3-5 |  Nashville, TN
• FinovateFall | September 8-10 | New York, NY
• 2025 MTRA Annual Conference | September 8-11 | Louisville, KY‍
• Boston Fintech Week | September 15-19 | Boston, MA