Welcome to the latest in fintech news, where cutting-edge technologies and innovative financial solutions converge to reshape the landscape of banking, investing, and payments. Stay tuned as we explore the trends driving the future of finance!

SEC approves first spot bitcoin ETFs in boost to crypto advocates (Financial Times)

The US Securities and Exchange Commission has approved the first spot bitcoin exchange-traded funds (ETFs), marking a significant milestone in the crypto space and potentially attracting new retail and institutional investors. Eleven ETFs, including those from established players like Fidelity and Invesco, were set to list, with only ten making the mark. Trading is expected to ramp up soon, providing regulated exposure to bitcoin for US investors and reflecting a shift in the SEC’s previous stance against such ETFs. Read more

OpenAI launches a store for custom AI-powered chatbots (TechCrunch)

OpenAI has launched the GPT Store, a platform for custom chatbot apps powered by its AI models, including GPT-4 and DALL-E 3. Available to subscribers of premium ChatGPT plans, the store features GPTs from OpenAI’s partners and the developer community, spanning categories such as lifestyle, writing, research, programming, and education, allowing users to explore and utilize various AI capabilities. The GPT Store was initially announced last year but was delayed, likely due to a leadership shakeup at OpenAI in November. Read more

Elon Musk outlines fintech plan for X with payments launch (altfi)

Under Elon Musk’s ownership, X, in a further move away from its Twitter legacy, is set to venture into financial services with the introduction of peer-to-peer payments in 2024, marking its first foray beyond social media. Musk envisions the platform not only facilitating simple transactions but also encompassing users’ entire financial lives, eliminating the need for traditional bank accounts and extending into areas such as money and securities. This move is part of X’s broader strategy to evolve into a multifaceted platform, incorporating artificial intelligence and financial capabilities to enhance user utility and offer new opportunities for commerce. Read more

Revolut faces US class action suit over biometric data collection (Finextra)

Revolut is facing a class action lawsuit in Illinois over allegations that it unlawfully collected, used, and stored customers’ biometric data. The lawsuit claims that Revolut violated Illinois’ Biometric Information Privacy Act (BIPA) by not disclosing how biometric data is collected, stored, and destroyed, and by not obtaining secure written consent from users. The plaintiff is seeking an order declaring Revolut’s conduct a violation of BIPA, demanding the cessation of data collection, and seeking damages. The case revolves around Revolut’s use of facial recognition software during the customer onboarding process. Read more

Actor paid to pose as crypto CEO “deeply sorry” about $1.3 billion scam (Ars Technica)

An actor hired by the collapsed cryptocurrency hedge fund HyperVerse to pose as its CEO has apologized after being exposed by a YouTuber. Stephen Harrison, living in Thailand, confirmed that HyperVerse had hired him to pretend to be CEO Steven Reece Lewis. The hedge fund’s alleged cryptocurrency-mining operation led to reported losses of $1.3 billion for investors who were promised “double or triple returns,” but the operation did not exist. Harrison claims he received about $7,500 for his role and was not aware of the fraudulent activities conducted by HyperVerse. The YouTuber who exposed him used facial recognition technology to uncover his true identity. Read more

Bitcoin trading volumes surge after debut of long-awaited US ETFs (Financial Times)

Picking up the unprecedented development in the cryptocurrency area: Bitcoin trading volumes surged on Thursday as the first 10 US exchange-traded funds (ETFs) offering direct exposure to Bitcoin made their long-awaited debut on stock exchanges. Trading across the New York Stock Exchange, Nasdaq, and Cboe exchanges exceeded $4 billion in the nine new ETFs and Grayscale Investments’ converted $28 billion Bitcoin trust. Grayscale’s Bitcoin ETF accounted for about half of the action, with $1 billion in trading occurring within 90 minutes of markets opening. The SEC’s approval of spot ETFs marks a significant development, making it easier for everyday investors to gain exposure to Bitcoin. Read more

Amethis buys majority stake in Capital Banking Solutions (FinTech Futures)

Amethis, an investment fund manager focused on Africa, has acquired a majority stake in Capital Banking Solutions (CBS), a European banking solutions provider. CBS, headquartered in Paris, provides banking solutions to international banks across Europe, Africa, the Middle East, and America. Amethis aims to support CBS in accelerating its organic growth, particularly on an international scale, and also facilitate external growth through strategic acquisitions to expand geographically and enhance its offerings. CBS’s flagship solutions include CapitalBanker, a core banking solution, and CapitalPrivate, a front-office wealth management solution for European private banks and wealth management specialists. Read more

Ant Group to acquire MultiSafepay (The Paypers)

Ant Group has closed a deal to acquire Netherlands-based MultiSafepay for $200 million, aiming to expand its presence in the Western market. The acquisition is part of Ant Group’s strategy to accelerate its expansion into Western payment markets. The deal is subject to regulatory approval and is expected to value MultiSafepay at around $200 million, including $50 million in revenue. Ant Group plans to purchase 100% of MultiSafepay, but no other details regarding the terms and conditions of the acquisition have been disclosed. This move follows Ant Group’s recent collaborations and product launches in various regions globally. Read more

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