Biz Builder Mike

You can't sail Today's boat on Yesterdays wind - Michael Noel

2021

JPMorgan Chase execs weigh in on stablecoin regulation, crypto competition

During JP Morgan Chase’s Q4 2020 earnings call, CEO Jamie Dimon and CFO Jennifer Piepszak weighed in on the OCC’s recent approval of banks using stablecoins for payments, as well as whether or not the approval will have any impact on the development of JPM Coin. 

During the question-and-answers portion of the call, Portales Partners analyst Charles Peabody asked about the approval from the OCC for banks to use public blockchain networks for payments.

“That guidance enables an offering of stable going on a public blockchain. So that doesn’t impact JPM coin. JPM coin, you should think about as the tokenization of our customer deposits,” responded JPM CFO Jennifer Piepszak, according to a transcript of the call.

However, she did not rule out the possibility of a JPM-backed stablecoin if customers showed interest.

“So, it’s obviously very early. We will assess use cases and — and customers demand. But — but it’s still too early to see where this goes for us.”

JPM CEO Jamie Dimon was also quick to jump in and mention that the bank is “using blockchain for sharing data with banks already and so we are at the forefront of that which is good.”

Debuted in October of 2020, JPM Coin is largely used on the backend of JPM’s payments systems, helping to settle nearly $6 trillion in payments on a daily basis. On the call, Piepszak also described the JPM Coin project as “tokenizing deposits to make payments easier for client.”

Ultimately, Dimon seemed to imply to crypto payments settlement won’t greatly change how JPM operates.

“There is this talk about several banks having digital currencies and stuff like that, right?” Dimon concluded. “[…] So I — I do expect that stuff is coming and it may not change our world that much”

Dimon may be underestimating the impact crypto will have on the payments landscape, however. 

Paypal, one of the Fintech giants that Dimon mentioned by name as a payments competitor, confirmed that crypto payments will be available starting in 2021. The CEO — a former noted skeptic of cryptocurrencies — made it clear that payments will become an increasingly crowded and cutthroat field over the next decade:

I expect it to be very, very tough competition in the next 10 years. I expect to win. So help me God.

JPMorgan Chase execs weigh in on stablecoin regulation, crypto competition

Source

Toronto-Dominion Bank Announces Acquisition of Wells Fargo’s Canadian Direct Equipment Finance Business

Toronto-Dominion Bank (TD Bank) announced on Thursday it has signed a definitive agreement to acquire Wells Fargo’s Canadian Direct Equipment Finance business. TD reported that the acquisition of Wells Fargo’s Canadian Direct Equipment Finance business is expected to add scale and capabilities to its existing Canadian Equipment Financing business and expand its presence in core markets.

“Wells Fargo’s Canadian Direct Equipment Finance’s direct origination model is expected to allow TD to better serve a more diverse set of business customers in need of competitive equipment loans, leases, and customized financing services.”

TD Bank further revealed that Wells Fargo’s Canadian Direct Equipment Finance business has a 25-year operating history, which includes the acquisition by Wells Fargo of GE Capital’s Canadian Equipment Finance business in 2016. The business, which has approximately C$1.5 billion in assets and over 120 employees, provides loans and leases covering a full range of commercial equipment for businesses across Canada.

While speaking about the acquisition, David Pinsonneault, Executive Vice President, Commercial and Industrial, Canadian Business Banking, TD Bank Group, stated acquiring the Canadian Direct Equipment Finance business, it will expand TD’s competitive position in the Canadian’ equipment finance industry as well as build on TD’s customer service.

TD’s purchase of Wells Fargo Canadian Direct Equipment Finance business is expected to close in the first half of 2021, subject to receipt of regulatory and Competition Act approvals and clearance, and satisfaction of other customary closing conditions. Terms of the acquisition agreement have not been disclosed at this time.

Source

Mike Novogratz Sees More Institutions Flocking into Bitcoin in 2021

Bitcoin’s recent rally has been mostly due to the influx of institutional investors into the market. However, there have been questions about how long this could continue. For crypto entrepreneur and investor Mike Novogratz, things appear to just be getting started.

Institutions Will Hop on Price Dips

Novogratz runs crypto merchant bank Galaxy Digital. He sat down for an interview with Yahoo! Finance, where he discussed the state of the crypto market.

The crypto investor said he expects the arrival of more institutions in 2021.

In the interview, Novogratz gave a quick overview of the market so far, heralded by Bitcoin and its volatile performance last week. The investor pointed out that there should be even further dips soon, although he wasn’t overly concerned because he expects an influx of institutional investors.

As explained earlier, 2020 was the year of institutions rushing into crypto. Fearing the weakening dollar’s effects, companies like MicroStrategy, Square, Ruffer Investments, and MassMutual made Bitcoin plays worth tens and hundreds of millions. However, as Novogratz explained, the trend should continue, with more investors seeing Bitcoin’s long-term value.

“The institutions who are coming into this space now that weren’t in the space six months ago, [a] year ago, don’t have their fill yet. Not even close. We’re in the first inning of a 9-inning game with insurance companies, asset managers,” Novogratz said in part.

The billionaire investor added that Bitcoin would have more dips soon, and there will be institutions waiting to pounce at the opportunity. So, the market remains strong, thanks in part to projected increases in demand.

The Coming Liquidity Shortage

Novogratz also explained that the influx of institutions represents a significant shift in the market’s structure. Most institutions appear to be long-term holders who don’t have much use for Bitcoins other than as a store of value.

Considering that these large companies tend to make hung plays at once, their reluctance to plow back any of the Bitcoins they own could lead to a liquidity crunch.

Trading platforms are already complaining about a possible liquidity problem. eToro told customers that massive demand for Bitcoin could cause it to place limitations on buy orders over the weekend. Coinbase’s daily volume also reached $9.5 billion on January 12 – surpassing its previous all-time high of $6.5 billion.

On the same day, volumes on Binance hit $30 billion for the first time. With institutions like Grayscale Investments and MicroStrategy snapping up Bitcoins every chance they get, it seems more likely that there will be less and less for retail traders to play with.

Mike Novogratz Sees More Institutions Flocking into Bitcoin in 2021

Source

CardFlight Announces Small Business Pay Solution Expansion With SwipeSimple Register Product Line Addition

CardFlight, a U.S.-based SaaS payment technology company, announced on Wednesday the addition of the SwipeSimple Register product line to its hardware offerings. According to CardFlight, the product will feature the following models:

  • SwipeSimple Register 8: has an expanded 8-inch touchscreen that delivers full POS/cash register capabilities. Its easy swivel mount conveniently shows customer prompts for tips and digital receipts, to provide a speedy check-out experience without adding clutter to counter space
  • SwipeSimple Register 6: designed for less complex sales environments. It features a convenient 6-inch touchscreen and swivel base station with a built-in receipt printer, packing a complete point of sale into an elegant device
  • SwipeSimple Register 15: target merchants requiring specialized features, including more advanced retail and food & beverage establishments, and quick-serve restaurants. It features an extra-large 15-inch touchscreen to quickly ring up complex sales, even from a large catalog

CardFlight explained that with these new payment solutions, small business owners will gain access to sophisticated countertop devices that run the powerful yet easy-to-use SwipeSimple software.

“SwipeSimple Register offers merchants sleek countertop devices integrating a physical check-out experience with modern point-of-sale and payment acceptance technology.”

while sharing more details about the product and features,  Derek Webster, CEO and Founder of CardFlight, stated:

“The addition of SwipeSimple Register to the SwipeSimple suite of products furthers our mission to serve the full range of small businesses across industries. No two small businesses are the same, and neither are their needs—SwipeSimple Register product line will offer storefront merchants a range of countertop options, to meet the needs of their business.”

CardFlight went on to add that SwipeSimple Register’s Initial launch will begin in late Q1 2021 full line to release throughout the year.

Founded in 2013, CardFlight states it is committed to making payment acceptance easy for business owners.

Source

Rewards Network Partners With Womply to Facilitate Restaurant Applications for the Next Round of Paycheck Protection Program Loans

 Rewards Network, a provider of financing, marketing, and loyalty services to the restaurant industry, announced on Wednesday it has formed a partnership with software and API company serving local businesses and app developers Womply to facilitate restaurant applications for the next round of Paycheck Protection Program (PPP) Loans. According to Rewards Network, Womply helped more than 50,000 businesses get their PPP loans in 2020, and are now partnering with Rewards Network to help restaurants streamline the application process to secure their 2021 PPP loan before funds dry up.

While sharing more details about the partnership, Steve Fusco, President of Rewards Network, stated:

“In 2020 we created several resources to help restaurants manage their businesses, and now our partnership with Womply will help restaurants get ahead by swiftly applying for and obtaining the new PPP loans they need.”

Toby Scammell, CEO of Womply, further commented:

“We’re excited to kick off our partnership with Rewards Network in an effort to make it easier for restaurants to submit for the new round of PPP loans, as we understand it can be an overwhelming process. We look forward to seeing many Rewards Network restaurants taking advantage of this partnership really soon, while bringing more awareness of our streamlined application solution to the restaurant industry.”

Rewards Network added that the partnership will also provide a free, six-month Womply Pro subscription ($774 value), and no-fee processing with Womply Pay (up to $226 in savings) for approved loan applicants

Source