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🌊The Fintech Wave #41
Hi all, welcoming 64 new subscribers since last week and hope you survived the heat wave🌡️and spend some time near the sea/ocean. Although we are looking into recession, there are so many things going on in fintech that looks like we will have to start sending 2 newsletters per week soon.
TLDR: Give your NFT as collateral for the loan. Learn how corporate treasury works in a nutshell and what it has to do with crypto. I found 2 excellent threads on Twitter: 1st is about micro-loans and 2nd is about career - IMHO the best career advice you will ever read. Instagram has payments over DMs.
If you like this newsletter please share it with friends and encourage them to sign up👇
Something I thought it will be interesting to see - the world’s most exclusive credit card💳 J.P. Morgan Palladium Card
- the card itself is made of 1oz of pure Palladium with the JP Morgan in 24 karat gold
- credit card worth more than $1000 in precious metal
- to get invited cardholders must have a minimum of $10 million in assets managed by J.P. Morgan (median is $100M)
- there are only 5,000 Palladium cardholders worldwide
Europe News and Funding
A cheap way to send💸money overseas
Sending money between countries has always been associated with high costs - currency exchange rate + a big fixed fee. Atlantic money wants to make costs a bit more predictable and cheaper. They charge a flat £3 fee for any amount (up to £1M). Also, the startup claim it has the live exchange rate - they source rates from large financial institutions that compete against each other, meaning they can always secure one of the best exchange rates available for all currency corridors. This could be the next fintech unicorn.
Americas News and Funding
Payments via DMs are now live on Instagram
Instagram rolled out an excellent feature - consumers can pay for items directly from the app without switching to other apps. In the beginning, it will only be available in the USA.
Fintech that allows corporate treasury to earn a crypto yield
So this is why this idea is interesting - the treasury department is managing the company's financial resources in order to help meet the company's business objectives. Companies have a lot of money deposited in the bank accounts and while this money is sitting in an account it is getting some interest. That interest is usually very small, around 1%. The Treasury team is making effective use of cash and other financial instruments, and ensuring enough cash is available for upcoming obligations, so they cannot just move the cash into the bonds to get higher interest. It is a very delicate job to do if you want to do it right.
Meow has an idea that companies could move some of this deposit money in crypto and receive a 4% yield, which is much higher than what currently banks offer. But at the same time, they need to secure quick exchange to cash when needed. Although the idea is not entirely new, the biggest obstacle is that it has to be compliant with all regulations, the yield has to be predictable and it must be liquid to exchange back to cash.
Payment processing for virtual worlds🌐raised $35M
Despite the winter on crypto markets, there are still startups in web3 that are raising money. Probably the most interesting one is ZEBEDEE which aims to be the payment processor in virtual worlds.
In-game and metaverse purchases already account for billions of dollars every day. ZEBEDEE enables programmable payments and small transactions to power virtual worlds with low fees. Using its platform game developers can easily add programmable money to their games. Infrastructure is based on Bitcoin Lightning Network.
Give your NFT🖼️ as collateral for the loan
Lisbon-based Zharta is the best use case in web3. If you own NFT, you can take a loan based on that NFT collateral.
The process works like any other loan - based on the NFT, the app calculates the maximum value of the loan. Each loan has a time frame in which it has to be paid and it is possible to pay it off in installments. Also, a super important thing for web3 - UX is one of the best you can find for web3 apps. The team really did a great job and they also raised a $4.3M round. You can request early access on their website.