Spot Bitcoin ETF cumulative trading volume exceeds $50 billion (The Block)

In a significant milestone, cumulative trading volume for spot Bitcoin exchange-traded funds (ETFs) surpassed $50 billion, marking a substantial surge within six weeks of regulatory approval. Notably, BlackRock’s IBIT emerged as a dominant player, capturing a 37.4% market share, while Fidelity’s FBTC secured a 20.9% share. Moreover, these ETFs saw a return to net inflows of $251.4 million after a brief dip in the preceding day, underscoring continued investor interest and confidence in the evolving landscape of digital assets. Read more

Nigerians turn to VPN as government blocks access to Binance, Coinbase, others (CryptoSlate)

Following the Nigerian government’s directive to block access to major crypto platforms, Binance has confirmed disruptions to its official website for Nigerian users. The restriction, aimed at curbing forex trading speculation, does not impact Binance app users, while other platforms like KuCoin, Gemini, and noOnes remain accessible. Binance refutes allegations of assuming central bank roles and advocates for open dialogue with regulators, while Nigerians turn to VPNs to navigate the ban, reflecting the ongoing challenges in the country’s crypto landscape. Despite regulatory hurdles, Binance reports robust activity, notably with its USDT/NGN trading pair. Read more

Judge Approves Binance’s $4.3 Billion Settlement For Anti-Money Laundering, Sanctions Violations (Forbes)

Binance and its founder Changpeng Zhao have pleaded guilty to breaking anti-money laundering laws and violating sanctions. A federal judge approved a plea deal, requiring Binance to pay over $4.3 billion in fines and restitution. The company must pay $898 million within 30 days and the full $1.8 billion in fines within 15 months. The plea deal includes monitoring Binance’s compliance by an independent firm for up to five years. Changpeng Zhao faces sentencing on April 30 and has agreed to step down as CEO, paying a $50 million fine. The charges involve violations of anti-money laundering laws and unlicensed money transmitting. Read more

Klarna discusses USD 20 billion IPO (The Paypers)

AI-enabled global payment provider and shopping assistant, Klarna, is reportedly pursuing a potential US listing for a valuation of around $20 billion. The Buy Now, Pay Later (BNPL) company has engaged in discussions with investment banks about an initial public offering (IPO) that could take place in the third quarter of 2024. While negotiations are ongoing, details of the offering, including valuation and timing, have not been disclosed. Klarna has not officially commented on the matter. The move comes as Klarna seeks to overcome past challenges, including conflicts among backers and a decrease in valuation from approximately $45.6 billion in 2021 to $6.7 billion in 2022. Klarna, which recently launched Klarna Plus in the US, is looking to expand its services in its significant US market. The company has been profitable in the US for four consecutive quarters and aims to grow beyond BNPL services into a comprehensive shopping and payments ecosystem. Read more

Google shuts down Google Pay in the US (Payments Cards and Mobile)

Google has announced the shutdown of its payments app, Google Pay, in the United States to simplify the app experience for users. The standalone Google Pay app in the US will no longer be available for use starting June 4, 2024. However, users in India, Singapore, and other countries will continue to operate the Google Pay app as usual. Google plans to migrate all US users to Google Wallet, where they can access popular features such as tapping to pay in stores and managing payment methods. The transition aims to make the process smooth for users, and they can continue to view and transfer funds to their bank accounts through the Google Pay website after June 4, 2024. Google Wallet will become the primary Android payments app in the US, with a focus on simplicity and core payment features. Peer-to-peer payments and access to in-app deals will cease on June 4th, and users are encouraged to download the latest version of the Google Wallet app for Android. Read more

ClearScore Calls For Change as UK Lending Market Contracts for Higher-Risk Customers (The Fintech Times)

The UK lending market for higher-risk individuals has contracted by approximately 34% since 2019, according to a whitepaper from ClearScore. Individuals with the lowest credit scores (‘sub-prime’) saw a steeper decline of 76% in the number of loans offered since 2019. This contraction is attributed to the removal of guarantor loans and high-cost short-term credit products from the market due to a combination of regulation and commercial considerations. The availability of unregulated lending, including buy now, pay later (BNPL), has risen in this context. The ClearScore whitepaper recommends regulatory and government actions to support and broaden access to the regulated market, including setting a clear strategy for a well-functioning non-prime lending market and reviewing how the cost of credit is communicated to customers. Read more

EU Council Adopts Instant Payments Regulation (Fintech Magazine)

The Council of the European Union has approved new regulations facilitating instant payments in the euro currency for consumers and businesses across EU and EEA countries. This move aims to enhance Europe’s economic and financial autonomy by reducing reliance on third-country institutions. The regulation allows citizens to make money transfers within ten seconds, promoting faster and more efficient cash flows. All payment service providers, including banks, must incorporate instant payments into their standard euro credit transfers, with fees not exceeding those for regular transfers. The regulations will be enforced after a transition period, quicker in the euro area and longer in the non-euro area. Payment and e-money institutions gain access to payment systems, with safeguards to mitigate additional risks. Instant payment providers must verify beneficiary information to prevent errors or fraud. The European Commission will conduct a review, evaluating credit charge developments. Industry experts anticipate challenges in the rapid implementation of these changes, especially for banks in ensuring technical feasibility and meeting ambitious timelines. Read more

Rabobank executes $2 billion in commercial paper transactions on blockchain (FinExtra)

Rabobank has successfully conducted a series of pilots, utilizing the Ubermorgen blockchain platform to execute over €2 billion in commercial paper transactions. The platform enables instant access to funds through automated issuance of commercial paper and certificates of deposit. In collaboration with Rabobank Treasury, TreasurySpring, and two major asset managers, Rabobank Markets executed multiple commercial paper and time deposits in EUR, USD, and GBP during the trial. The initiative marks a significant step in capital market development, aiming to reduce credit risk through T0 and instantaneous settlement. The pilot also integrated analytics tools, offering real-time insights into money market trends. Rabobank sees the hybrid approach, combining global and instant interoperability, as the future of finance, providing speed and flexibility through distributed ledger technology while maintaining the reliability and compliance of a centralized system. Clients have expressed enthusiasm for this innovative solution. Read more