Daily Tearsheet: Stablecoins in TradFi, FedNow’s growth prospects, and digitizing mortgages
- Stablecoins seem to be here to stay but many in the traditional work of finance are still trying to wrap their.heads around them.
- Also, if mortgages are the super product for fintech, then the industry is catching up.
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Data Snack: Real-time payments contribute a meager 0.9% to US transactions, FedNow expected to change that
Real-time payments are no longer the most novel idea in the realm of payments. However, with limited prevalence so far, experts argue the technology’s true potential is yet to be unlocked, and that is expected to remain the case for the short-to-medium-term future.
ACI Worldwide, a provider of payment solutions to banks, recently released a report studying the global landscape of real-time payments. The report tracks RTP volumes and growth globally and measures the economic benefits of RTP for consumers, businesses, and the broader economy.
The challenges and opportunities for stablecoins in traditional finance with Paxos’ Mike Coscetta
Mike Coscetta, head of revenue at Paxos joins co-host Zack Miller, Tearsheet’s Editor in Chief, on the Tearsheet Podcast to explore the way the financial industry bridges the old world with the new one via stablecoins – crypto tied to the US dollar, for example -- as the industry looks at what’s happening in crypto.
As an infrastructure player, Mike's firm works with many of the top brands with crypto offerings, like PayPal.
The latest briefing
Lending Briefing: How fintechs are digitizing the mortgage process
As consumer preferences shift towards the digital, everything happens online nowadays. However, there are still some processes that haven’t been converted into code. One of these head-scratching areas is the mortgage.
While the pandemic forced the mortgage industry to digitize core functions almost overnight just to keep pace with demand, this segment of the market is often described as the last mile - the daunting task of making a mortgage transaction happen in a few minutes on your phone will be the last piece of the financial puzzle.
The industry adopted digital solutions to perform tasks that were typically completed face-to-face, including e-verification of income and assets, drive-by and automated appraisals, and hybrid closings, according to a Deloitte report.
Read more (exclusive to Outlier members)
Just look at the charts
1. Change in value of DeFi tokens due to market conditions or reserve volatility
Source: CryptoRank
2. Losses reported by FIs in the past 6 months
Source: Julie VerHage-Greenberg
Today's stories
Affirm stock depreciates following Upstart earnings
Shares of Affirm were tumbling in midday trading this week after Upstart fintech using artificial intelligence in lending decisions, cut its full-year forecast (MarketWatch)
SoFi is engaging with SMB finance companies
SoFi may not exactly be in the small business lending market per se, but a digital payments company it acquired in April 2020, Galileo, has been put to good use (deBanked)
US Bank partners with LiquidX to boost supply chain management
U.S. Bank, a major processor of transportation payables as well as a significant lender to supply chain operations, is teaming up with LiquidX to more fully digitize its supply chain financing (FreightWaves)
Visa crypto executive leaves for startup DriveWealth
Terry Angelos, Visa’s global head of fintech and crypto, is leaving the payments giant and will take over as CEO of start-up DriveWealth next week (CNBC)
Is UST’s Bitcoin reserve too late in saving the dollar peg?
Luna Foundation Guard's proposed cryptocurrency reserve to guard against a collapse of the UST stablecoin came too late to guard against the past week's market turmoil (CoinDesk)
Coinbase sunk by fears of a ‘crypto winter’
Coinbase’s trading volumes fell more than 40 % in the first quarter, as its worse than expected earnings and bleak outlook underscored the fallout from the crypto bear market (Financial Times)
All “eligible” Robinhood users can earn 1% interest
Less than a week after unveiling plans to allow users to lend out their stock, the company announced that it has introduced a “revamped” brokerage cash sweep program that will be rolled out to customers (TechCrunch)
Current introduces platform API
Fintech platform Current launched its platform API to bring seamless integrations and embedded banking experiences to fintechs and financial services companies (Finovate)
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