SoFi launched the SoFiUSD stablecoin on the Ethereum blockchain. The bank will also provide infrastructure that lets other banks and fintechs issue white-label stablecoins that are interoperable with SoFiUSD. “Stablecoins as a service” like SoFi’s offering—and Fiservs’—may democratize stablecoins to a broader base of financial institutions. Up until now, banks that wanted to issue stablecoins needed to develop their own decentralized finance (DeFi) infrastructure and internal compliance guardrails. A widespread entry into stablecoins would be a massive pivot for a banking sector used to dealing in fiat currency, normalizing stablecoins as a payment mechanism across the US—further blending traditional finance and DeFi.

LevelField Financial, a crypto-friendly “bank” without a bank charter, has obtained conditional state approval to acquire Burling Bank, a state-chartered Chicago community bank with $206 million in assets. Crypto-friendly and crypto-native banks are increasingly operating like traditional banks. That would be a mistake: As crypto firms acquire banks or receive bank charters—and as banks build crypto-related businesses—the lines will blur between legacy and decentralized financial systems. Banks must eventually be prepared to do it all.

The Web3 opportunity is real, but it’s tempered by misconceptions and little-understood risks. Financial services providers must first understand what Web3 really means to avoid disintermediation by fintechs and first-mover incumbents.

Their strategies must address business challenges, hiring hurdles, and new technologies.

The US challenger’s plan to mix decentralized finance with traditional banking in a “hybrid finance” approach could shore up its appeal to younger users.

DeFi industry must do more self-policing until regulation arrives: Theft from DeFi platforms increased 1,330% in 2021—and the SEC is looking at pseudonymity and opacity as major problems to solve.

Nova Credit transfers immigrants’ credit histories into the US financial system so Amex can reach a hard-to-tap consumer segment.

Spurred by shifts in customer expectations, incumbents will race to personalize services and enhance distribution strategies. Fintechs will focus their attention on tapping opportunities that first emerged in 2021.

eToro launched a DeFi portfolio to give retail investors exposure to the new asset class as the industry matures and more players look to get in on the action.

The bank filed an application to launch an ETF comprising crypto-related firms, but we’ll likely have to wait a few months until such a product is on the market.

The fintech’s $100 million round shows growing confidence in the crypto sector, as regulations and new use cases increase and make solutions like Chainalysis’ more valuable.