Advisory Insights: June Edition

The Storyline

The OCC issued guidance clarifying that banks can buy, sell, and hold crypto assets on behalf of customers, marking a significant regulatory milestone that provides clarity for covered banks seeking to offer digital asset services. This development aligns with a broader shift toward crypto-friendly policies under the Trump Administration. Meanwhile, the CFPB announced plans to revisit its open banking rule despite workforce cuts, while also deprioritizing enforcement of its BNPL rule.

Public markets activity accelerated with multiple fintech IPO filings gaining momentum. Chime publicly filed for an estimated $1 billion IPO, revealing 8.6 million active members, with 67% using Chime as their primary banking platform and averaging 54 transactions per month. Circle, the USDC stablecoin issuer, launched its IPO under ticker “CRCL,” offering 24 million Class A shares priced between $24–$26 per share, targeting a $6.7 billion fully diluted valuation. Across the Atlantic, Monzo reportedly lined up Morgan Stanley to pitch investors ahead of a potential IPO in the first half of 2026, demonstrating continued global appetite for digital banking public offerings.

Identity verification and cross-border payments attracted significant venture funding as AI fraud concerns and global expansion drive capital allocation. Persona raised a $200 million Series D amid growing concerns about AI-generated fraud, serving major clients including OpenAI, LinkedIn, and Reddit. Stash secured $146 million in Series H funding, bringing its assets under management to $4.3 billion as it focuses on AI-driven financial guidance for everyday Americans. Airwallex closed a $300 million Series F at a $6.2 billion valuation to fuel global expansion. Thunes raised $150 million to expand its cross-border payments platform, while stablecoin-focused provider Conduit secured $36 million in Series A. BVNK received a strategic investment from Visa to enhance its stablecoin infrastructure.

Financial services companies pursued targeted acquisitions to bolster AI capabilities and expand into specialized customer segments. LendingClub acquired Cushion’s AI-powered spending intelligence platform to strengthen its technology capabilities. Acorns expanded its family-focused services by acquiring Earlybird, a family wealth and digital memory platform, following its 2023 acquisition of GoHenry. Robinhood agreed to acquire Canadian crypto trading platform WonderFi for C$250 million, while Anchorage Digital announced plans to acquire stablecoin issuer Mountain Protocol.

Financial institutions embraced public blockchain infrastructure for the first time while major banks explored collaborative stablecoin initiatives to defend against crypto competition. Major U.S. banks including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo held early discussions about launching a joint stablecoin through their co-owned entities Early Warning Services (which operates Zelle) and The Clearing House. The consortium’s outcome depends heavily on pending stablecoin legislation, particularly the GENIUS Act which recently advanced in the Senate. Meanwhile, JPMorgan Chase partnered with Kinexys, Ondo, and Chainlink to settle a transaction on a public blockchain outside of its own Onyx platform for the first time. Mastercard and MoonPay joined forces on stablecoin payment solutions. Coinbase agreed to acquire derivatives exchange Deribit in a $2.9 billion deal. Copper partnered with Circle to expand USDC functionality to institutional clients, while Worldpay enabled stablecoin payouts for global businesses through BVNK.

Strategic partnerships reshaped competitive dynamics as former rivals found common ground. Brex announced a partnership with former competitor Zip, embedding Brex’s virtual cards into Zip’s procurement platform to serve their combined 30,000+ business customers. Upstart announced a strategic partnership with Walmart’s OnePay, expanding its lending reach through the retail giant’s financial services ecosystem. Ramp partnered with Stripe for card issuing, including stablecoin-backed cards, while Rho partnered with Aprio to deliver integrated banking and accounting advisory solutions. Revolut announced plans to roll out bitcoin lightning payments in Europe through its partnership with Lightspark.

Network Spotlight

We sat down with Pradeep Goel, CEO of Solve.Care, a blockchain-based healthcare platform. He discussed the potential of blockchain to transform the patient–provider relationship and create efficiencies in health payments and care coordination. Goel highlighted Solve.Care’s work in building decentralized care networks that connect patients, providers, employers, insurers, and government agencies in a secure and transparent way. He also reflected on the challenges of introducing blockchain technology into a complex, highly regulated industry and emphasized the importance of building trust through transparency and patient-centric design.

Product Launches

• PayPal launched a buy now, pay later savings program allowing customers to earn interest on installment payments.
• Chime introduced “Credit Builder Plus” offering cash advances and higher spending limits.
• Affirm rolled out a subscription payments product enabling merchants to offer recurring BNPL options.
• Revolut launched a family account product in Europe with parental controls and allowances.
• SoFi announced a student loan refinancing marketplace integrating multiple lenders.
• Cash App launched investment circles to allow users to pool funds for group investments.
• Robinhood unveiled a retirement match program where the company matches a portion of customer contributions.
• Brex rolled out automated accounts payable tools to simplify vendor management.
• Monzo introduced a small business cash advance product in the UK.
• Coinbase launched a self-custody wallet for institutions.

FS Vector Calendar

• August 8 – Fintech Happy Hour, Washington, DC
• August 12–13 – Fintech South, Atlanta, GA
• August 20 – DC Fintech Week Kickoff, Washington, DC
• September 5–7 – Money 20/20 Asia, Bangkok, Thailand
• September 23–24 – RegTech Summit, New York, NY
• October 7–9 – DC Fintech Week, Washington, DC