Revolut has apointed Michael Schroeder, formerly Chief Risk Officer and Managing Director for Europe at Coinbase, as Global Head of Crypto Expansion.Schroeder spent nearly three years at Coinbase overseeing European risk and regulatory operations. In a LinkedIn post announcing the move, he said his focus at Revolut would include “licensing, regulatory readiness, operations, and market launches”.The wording is revealing. This is not the sort of hire associated with customer acquisition or product marketing. It suggests that regulatory and licensing capabilities will be as important as product expansion.The move also reflects a broader pattern emerging across the sector. Recently, Kraken appointed Andreas Roussos, a regulatory technology specialist, to lead its Cyprus operations. While Kraken’s Cyprus unit is closely tied to MiFID-regulated activity, the underlying logic appears similar: risk, compliance and licensing expertise is at the centre of expansion strategies.Moving Back to America? Revolut already holds a strong regulatory position in Europe and the UK. In 2025, the fintech became one of the first firms to secure a MiCA licence from the Cyprus Securities and Exchange Commission, with Cyprus serving as the base for its European crypto operations.The fintech was officially added to the UK's Financial Conduct Authority (FCA) list of registered cryptoasset firms in 2022. Yet despite aggressive international growth, there is still one major market where Revolut lacks crypto permissions: the US. In October 2023, Revolut suspended all cryptocurrency services for US customers, citing what it described as an “evolving regulatory environment” amid intensifying scrutiny of the sector by the US Securities and Exchange Commission.American users retained access to Revolut’s banking and fiat services, but could no longer buy, sell or hold digital assets through the platform.Things are changing, though.In March 2026, Revolut filed for a US national bank charter, a move widely interpreted as an attempt to deepen its American presence and reduce reliance on partner banking arrangements.If Revolut becomes a federally chartered bank, it could improve the odds of a crypto return. This article was written by Adonis Adoni at www.financemagnates.com.

Dutch neobank Bunq has applied for a banking license in Mexico, the company said, opening a third regulatory front for the digital lender after a fresh US application earlier this year and its existing European banking permit.Dutch Neobank Bunq Applies for Mexican Banking LicenseThe filing would let Bunq, which describes itself as Europe's second-largest neobank, offer full-service banking, multi-currency accounts and protected deposits in Mexico, according to the company. Bunq did not disclose a target launch date or capital commitment. Mexican banking authorizations run through the National Banking and Securities Commission, known as the CNBV, in coordination with Banco de México and the Ministry of Finance.The Mexico push comes roughly four months after Bunq refiled for a US national bank charter with the Office of the Comptroller of the Currency in January, two years after withdrawing its first attempt.Founder and Chief Executive Ali Niknam has framed the dual push as part of an effort to serve customers who split their lives across countries."Bunq is designed for people who live, work, and travel across borders, and as a vital hub connecting the Americas, Mexico is a natural home for us," Niknam said in a statement. He added that the bank's users "need a bank that is safe, secure and easy to use, wherever they are."A Crowded Mexican Race Bunq Is Joining LateThe application places Bunq behind several digital banks already moving through Mexico's licensing pipeline. Revolut, the UK fintech valued at around $75 billion, received final operational approval from the CNBV and Banco de México on October 20, 2025, becoming the first independent digital bank to clear Mexico's full licensing process from scratch.Revolut's local entity, Revolut Bank S.A., is now opening accounts for a waiting list the company estimated at nearly 200,000 people as of May 2025, with a stated one-year target of 1.5 million customers. Juan Miguel Guerra, who runs the Mexican bank, has said the launch will lean on free international transfers, an area where Bunq's product would directly overlap.Brazil's Nubank, the largest digital bank in Latin America with around 94 million customers, is further along the same path. Its Mexican subsidiary received CNBV approval in April 2025 to convert into a multiple banking institution under the name Nubank S.A., and is now in the systems-testing phase ahead of final operational sign-off, according to a company filing with the US Securities and Exchange Commission.Cross-Border Money Is the PrizeMexico's appeal for foreign digital banks rests on one of the world's largest remittance corridors. Inflows reached a record $63.3 billion in 2023, the bulk of it from the United States, and the share of Mexican adults with a bank account remains below most OECD peers. Those numbers are what neobanks targeting "global citizens," as Bunq describes its users, are trying to capture.Other foreign players have entered through different doors. Webull moved into the country by acquiring Mexican investment app Flink in November 2023 and picking up local brokerage Vifaru Casa de Bolsa as part of the deal. Australia-headquartered Airwallex took the payments route, buying Mexican payment service provider MexPago in January 2025 to support cross-border transactions for businesses. Neither pursued a full deposit-taking license.Aggressive Global Pipeline, Mixed ExecutionBunq has been pushing hard outside Europe. The company secured a US broker-dealer license from FINRA in October 2025, launched flexible crypto staking through a partnership with Kraken across the EU, and reached 20 million users in September 2025, placing it second in Europe behind Revolut's 60 million.The US banking effort has not been smooth. Bunq filed with the FDIC in New York in 2023, withdrew the application in April 2024 citing regulatory issues, and returned to the OCC in January 2026 under what Niknam has described as a more favorable supervisory environment. Mexico now joins that pipeline, with no disclosed timeline on either authorization. This article was written by Damian Chmiel at www.financemagnates.com.

Investors gave eToro Group (NASDAQ: ETOR) a quick double-take yesterday (Tuesday). Pre-market shares climbed roughly 6% to $41.20 on a 35% earnings beat, then reversed once the conference call started, dropping more than 6% intraday before settling at $37.61, a 3% loss for the session. The Q1 numbers were a clean beat on the headline figures, with adjusted EPS of $0.91 against a $0.69 consensus and net contribution up 19% year-over-year to $258 million. Assets under management declined quarter over quarter, while average trade sizes shrank by nearly 50% year over year.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)The Q1 figures FinanceMagnates.com reported yesterday showed net income up 37% on a near-fourfold surge in commodities trading. CEO Yoni Assia opened the analyst call by calling it the "fourth consecutive strong quarter since becoming a public listing." Technically, the stock still sits near the local highs it has drawn for about a month, levels last seen in December 2025. But the price action puts the shares more than 40% below the $67 first-day close eToro registered on its May 2025 Nasdaq debut, and roughly 28% below the $52 IPO offer price.The eToro’s AUA Number Investors Won't HeadlineeToro's earnings deck leads with "AUA grew 15% YoY to $17 billion." Three quarters back, the same chart tells a different story.Source: eToro shareholder update, May 12, 2026.That is $3.8 billion in client assets that have walked off the platform or depreciated since the September peak, a sequential erosion of 18% over two quarters. April rebounded to $18.7 billion in the monthly KPI release, but eToro is still trading well below the Q3 high. The press release frames the story through the year-over-year lens, which works because Q1 2025 was a weak comparable.The drag is concentrated in one place. Crypto assets held on the platform fell from $7.8 billion at the end of Q3 2025 to $4.1 billion at the end of March, a 47% decline in two quarters.Equity AUA has climbed in the same window, from $6.5 billion to $9.3 billion, but the offset has not been enough to keep the total rising. Assia framed the crypto decline as opportunity rather than risk, telling analysts that "crypto downtimes are the time to build." The framing tracks with eToro's February pivot story, but the underlying asset retention question keeps surfacing.Margin Math the Call SurfacedCFO Meron Shani told analysts the company will scale selling and marketing spend from 22% of net contribution in Q1 to 25% by year-end 2026, repeating the commitment first made on the Q4 2025 call in February. At Q1 net contribution of $258 million, every percentage point added is roughly $2.6 million in incremental quarterly marketing. Shani also confirmed adjusted operating expenses rose 7% sequentially, with a $12 million step-up in customer acquisition costs the main driver.Asked about Q2 trends, Shani said the company expects revenue per trade to be "just slightly above the range" of 60 to 75 cents the company normally guides to, a step down from the elevated Q1 print that commodities trading powered. Net trading contribution from crypto was $13 million in Q1, with Shani specifying that the figure includes a $5 million negative valuation impact on eToro's own corporate crypto holdings. Strip that out and the underlying user-driven crypto trading business contributed $18 million, less than half the level reported a year ago.Average Trade Size CollapsedThe Q1 invested amount per capital markets trade was $197, down from $304 in Q4 2025 and from $262 a year earlier. April held flat at $197 against $379 in April 2025, a 48% year-over-year drop. eToro attributes the trend to a higher mix of copy and automated trading, but the figure is also consistent with retail clients trading leveraged commodity CFDs rather than larger directional cash positions. The balance sheet hints at the same shift. Counterparty balances, which represent collateral posted with trading counterparties on the hedging side of the book, rose 39% in the quarter to $347 million from $249 million at the end of December.For comparison, XTB delivered an 88% revenue jump on 370,000 new clients in a single quarter, while Plus500 lifted its full-year 2026 outlook on $242 million in Q1 revenue. This article was written by Damian Chmiel at www.financemagnates.com.

Revolut is expanding its presence in Israel with a new hiring push, as the fintech giant continues efforts to secure a lean bank license in the country. The move follows its earlier approval to offer payment services and signals a broader plan to enter the local banking market.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)Hiring Supports Expansion PlansRevolut is now recruiting a Strategy and Operations Manager to remotely support its growth in Israel. According to LinkedIn job post, the role focuses on building scalable processes, managing infrastructure projects, and improving operational efficiency.The hire will also work on setting project priorities, developing new product features, and managing relationships with external vendors. Revolut expects the role to support decision-making across teams and help execute key initiatives tied to its expansion.Revolut’s hiring comes as it engages with Israeli regulators to obtain a lean bank license. The license is a limited banking framework that allows non-bank entities to accept customer deposits and provide credit services. Focus on Lean Banking ModelThe company currently operates as a full bank in Lithuania, where it holds a European Economic Area banking license supervised by the European Central Bank, and in Mexico, where it has a Multiple Banking Institution license. It also operates as a fully licensed bank in its home turf in the UK, after regulators lifted restrictions on its UK banking licence last month. Additionally, it submitted banking applications in Peru earlier this year.The structure of a baking license Revolut is seeking sits between a basic payment license and a full banking license. It gives fintech firms the ability to offer interest-bearing deposits and lending products while operating under lighter regulatory requirements than traditional banks.Related: Revolut Can Now Hold Britons’ Cash and Lend It, After Securing a Full UK Bank LicenseIsrael has opened its financial sector to more competition in recent years. Regulators granted payment licenses to several fintech firms, including Revolut, Rapyd, Mesh, and Airwallex, aiming to lower costs and increase consumer choice, according to Calcalistech. Revolut now appears to be building the local infrastructure needed to support a wider product offering. No incentive to Switch LendersHowever, some experts maintain that Israel’s banking sector remains structurally uncompetitive. ONE ZERO CEO Eyal Gafni told media outlet Globes that customers in the region rarely switch because incumbent banks offer near-identical products and “crumb-level” deposit rates unless clients bargain."Until recently, there was no reason to switch or open another account. Everything is the same, the banks are pretty similar, and they just have a different color. The gap (between the interest rates on deposits) that the banks give is crumbs, very embarrassing, unless you call to bargain," Gafni commented for the publication as translated to English. He pointed to Bank of Israel data showing Israelis hold on average just 1.1 bank accounts, noting that financially literate, higher-earning customers tend to maintain multiple relationships to gain bargaining power.He framed ONE ZERO as a proof-of-concept for foreign neobanks, adding that international players like Revolut are unlikely to enter Israel until a local digital bank demonstrates it can meaningfully change the market, a milestone he believes is now within reach. This article was written by Jared Kirui at www.financemagnates.com.

eToro Group (NASDAQ: ETOR) posted its strongest quarter since going public, reporting first-quarter net income of $82 million and net contribution of $258 million, up 37% and 19% respectively from the same period a year earlier. Funded accounts reached 4.02 million and assets under administration climbed 15% to $17 billion, the trading platform said in a statement today (Tuesday).Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)Adjusted EBITDA reached $109 million and adjusted diluted earnings per share rose to $0.91 from $0.77 a year earlier.“I’m incredibly proud of the eToro team for delivering our strongest quarterly financial results as a public company," Yoni Assia, CEO and Co-Founder of eToro, commented."We also saw acceleration in product launches with many new apps within the eToro App Store, AI-powered Agent Portfolios, and an integration with xAI for Tori, our AI agent."Commodities Take Over eToro’s Revenue MixCFO Meron Shani said the results were "supported by a surge in commodities trading," language the company tied to its multi-asset business model.The standout shift sits inside the trading commission breakdown. Net trading income from equities, commodities and currencies rose 71% year-over-year to $166 million, with the company reporting that commodities alone accounted for around 60% of trading commissions, up from 16% in Q2 2025. Commodity volumes increased nearly fourfold compared with the same quarter a year earlier, eToro said.That shift extends a rotation FinanceMagnates.com flagged earlier this year, when eToro users pivoted out of crypto and into capital markets during February, lifting capital markets trade activity by 81% year-over-year. Total capital markets trades reached 243 million in Q1 2026, up 90% from a year earlier, while cryptoasset trades fell to 10 million from 20 million.Q1 2026 vs. Q1 2025 at a GlanceListed Rivals Post Mixed Q1 NumbersThe print places eToro at the stronger end of the listed retail brokerage cohort reporting first-quarter results. Plus500 (LSE: PLUS) raised its full-year 2026 outlook after posting Q1 revenue of $242 million, up 18% year-over-year, with a five-year record on customer income. Warsaw-listed XTB delivered the steepest quarterly print of the group, with operating revenue up 88.5% to roughly $301 million and net profit climbing 176%, on the back of 370,000 new client additions.Robinhood (NASDAQ: HOOD) reported Q1 revenue of $1.07 billion, up 15%, but its cryptocurrency revenue fell 47% to $134 million, with the gap filled by event contracts and options. Interactive Brokers' first-quarter account growth came in at 31% even as trading activity softened from March.The group points to a common pattern: heightened volatility in commodities and equities is propping up trading revenue, while crypto lines are compressing across multi-asset platforms.eToro, the social trading and investing platform, has just released its Q1 2026 earnings report. Watch as CEO @yoniassia and CFO Meron Shani break down the financial results and discuss new product launches. https://t.co/6ET01EB99w— eToro (@eToro) May 12, 2026New York Crypto, Japanese Stocks, AI App StoreProduct launches piled up in the quarter. The company activated its New York BitLicense and Money Transmitter License to offer crypto trading in the state, added Japanese equities to bring its exchange coverage to 26 markets, and extended 24/7 trading to select commodities, equities and indices.It also opened an eToro App Store for third-party developers, embedded xAI's Grok 4.2 sentiment data into its Tori AI assistant, and rolled out Agent Portfolios for AI-driven sub-account trading, which the firm said keeps the main portfolio segregated from automated strategies.In wealth, eToro said UK ISA assets under management grew 15-fold year-over-year, while the European rollout of the eToro Money card saw new card issuances rise 2.2 times quarter-over-quarter.Zengo Closes, April KPIs Extend the RunThe Zengo acquisition closed on April 30, adding a self-custodial wallet with more than two million users to eToro's stack. The company has tied the deal to its push into prediction markets and perpetuals, segments where Trust Wallet, Kalshi and Polymarket are also positioning.April preliminary metrics showed funded accounts at 4.07 million, AUA at $18.7 billion (up 19% YoY), and total money transfers of $1.4 billion, up 53%. Capital markets trades reached 63 million in the month, a 50% year-over-year increase, although the average invested amount per trade fell 48% to $197, which eToro attributed to a higher share of copy and automated trading.The Bnei Brak, Israel-based company spent $101 million repurchasing its own shares in the quarter, drawing on the buyback program it expanded in February alongside its full-year 2025 results, and ended March with $1.3 billion in cash, cash equivalents and short-term investments. This article was written by Damian Chmiel at www.financemagnates.com.

Robinhood CEO Vlad Tenev defended prediction market traders against gambling critics last week, arguing that speculators are essential for any market to work. The comments, delivered at the Wall Street Journal's Future of Everything conference on May 5, landed in the same week that prediction market operator Kalshi closed a $1 billion funding round at a $22 billion valuation.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)"You can't have a functional financial market without speculators. If everyone's just hedging, the market is going to break," Tenev said, responding to a question about whether prediction markets amount to gambling. "As long as you have a strategy, and it's systematic, who am I to say that you shouldn't engage in trading of that asset class?"In a CNBC appearance the same day, Tenev described prediction markets as "a great source of information," signaling Robinhood's intent to keep pushing into a product line that barely existed a year ago.The Defense Lands at a Contested MomentTenev's pitch arrives as the industry sits between record investor enthusiasm and intensifying regulatory pressure. Kalshi's $22 billion valuation puts it among the most valuable trading platforms in the country, with more than $52 billion in event contracts traded on its exchange as of March, according to the company. Kalshi recorded roughly $4.47 billion in volume over the past month, compared with $3.58 billion at rival Polymarket, which itself secured a $2 billion funding commitment from NYSE parent Intercontinental Exchange last year at an $8 billion valuation.The valuations come as bipartisan legislation, including the Prediction Markets Are Gambling Act and the broader STOP Corrupt Bets Act, sits in congressional committee. Traders on the platforms themselves are pricing the probability of a federal sports prediction market ban in 2026 at roughly 11 percent.Robinhood's Own Numbers Tell the StoryBehind the public defense are the figures from Robinhood's first-quarter earnings. The platform handled 8.8 billion event contracts in the first three months of 2026, contributing the bulk of $147 million in "other transactions" revenue, a figure that rose 320 percent year over year. Analyst estimates put the prediction markets division on track for roughly $300 million in annual revenue.The company is also moving to operate its own exchange. Robinhood's planned acquisition of MIAXdx, a CFTC-regulated futures and clearing venue, would let the broker list and clear contracts directly rather than route them through its Kalshi partnership. Shares of Robinhood climbed more than 10 percent when the deal was first announced last year.Insider Trading Cases Test the NarrativeThe defense of speculation has been complicated by a string of scandals that emerged the same week as Tenev's comments. NPR reported on May 7 that Kalshi has suspended and fined several political candidates this year for betting on their own campaigns, alongside a separate case involving an editor for YouTube creator MrBeast. Kalshi has explicit rules against trading on events whose outcomes a participant can influence, the company has said.Federal prosecutors separately charged a Defense Department contractor with using classified information to trade on Polymarket, in what the Justice Department described as the application of national security laws to a new asset class. The case has prompted calls to ban certain types of event contracts entirely, even as the CFTC has filed suit against Arizona, Connecticut, and Illinois over what it argues is state overreach into a federally regulated market.Competition Builds Beyond Robinhood and KalshiThe prediction market space is no longer confined to the original two platforms. eToro acquired Israeli self-custodial wallet provider Zengo in April for roughly $70 million to support on-chain prediction market trading, while Crypto.com launched its own product and Gemini has filed for CFTC approval to do the same. Coinbase is also reported to be exploring entry into the sector. DraftKings acquired a CFTC-licensed exchange last year, routing trades through CME Group, and FanDuel parent Flutter is now operating as a market maker.The competitive build-out is unfolding alongside institutional integration of the format. ICE launched a Polymarket sentiment data tool for capital markets clients, and Kalshi partnered with Brazilian broker XP in March to take event contracts international. Robinhood has separately held discussions with regulators in the UK and across the European Union about how prediction markets could be structured outside the United States.Where the Line SitsFor now, the industry's growth and its regulatory risks are advancing in parallel. Tenev's defense of speculators, delivered at a moment when investors are willing to value Kalshi at $22 billion but federal prosecutors are charging individual traders with crimes, captured both sides of the debate in a single week. Whether prediction markets settle inside the futures perimeter or get pulled back toward state gambling regimes will likely shape how far the retail event contract category can still scale. This article was written by Damian Chmiel at www.financemagnates.com.

Kalshi raised $1 billion this week at a $22 billion valuation, one of the largest financings yet in prediction markets. At the same time, the CFTC closed its public comment window on prediction market regulation after receiving more than 1,500 submissions.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!).These developments highlighted the same underlying trend: prediction markets are growing fast enough to attract institutional capital, while regulators and industry groups are still arguing over what these products actually are. What Moved the Prediction Markets This Week Kalshi Closes $1 Billion at $22 Billion Valuation On May 7, Kalshi announced a $1 billion Series F round valuing the company at $22 billion — one of the largest financings yet in prediction markets. Kalshi now accounts for more than 90% of U.S. prediction market activity. The funding will be used to expand block trading, build institutional integrations, and expand the platform’s relationships with professional trading firms and financial institutions.The CFTC Review Reveals a Split Over What Prediction Markets Are The CFTC closed its public comment window on prediction market regulation with more than 1,500 submissions, exposing a sharp divide over how event contracts should be classified. Industry participants including Coinbase and Kalshi argued that prediction markets function as financial derivatives tied to price discovery and hedging. State gaming regulators and consumer groups argued the opposite: that these products are effectively gambling products structured as financial products. This week, the CFTC also opened a review of its Commitments of Traders reporting framework, bringing prediction market platforms closer to the transparency standards used in traditional commodity markets. Flutter Bets on Prediction Markets as a Market Maker Flutter Entertainment said this week that it is already generating revenue from prediction markets as a market maker. CEO Peter Jackson said the company is using its existing pricing infrastructure to quote event contracts and earn revenue from the spread between buy and sell orders. Flutter is operating as a liquidity provider as prediction markets increasingly attract firms built around pricing, inventory management, and risk infrastructure.Quote of the Week The gambling industry is framing prediction markets not as financial products, but as a way to bypass state sports betting laws. The American Gaming Association put its position directly this week: New data from @EilersKrejcik shows the majority of sports prediction market activity is taking place in states where online sports betting remains illegal.That’s a blatant dismissal of voters’ decisions and state laws that chose not to legalize online sports betting.Read… pic.twitter.com/9yhD0yN8dF— American Gaming Association (@AmericanGaming) May 6, 2026 Number of the Week 800% is the increase in institutional trading volume on Kalshi over the past six months, disclosed alongside the company’s $1 billion funding round on May 7. The figure reflects how quickly prediction markets are attracting institutional participation. The Friction of the Week Prediction markets are scaling faster than the political framework around them. Kalshi raised $1 billion this week at a $22 billion valuation, while weekly prediction market volume moved above $7 billion.Prediction markets are heating up.Last week closed with over $7B in Weekly Notional Volume, just $350M away from the current All-Time High and marking a new record.@Kalshi led the week again with roughly $3.8B in Notional Volume, accounting for about 54% of the total and… pic.twitter.com/MrxRRhao0O— Martins (@wogaam) May 4, 2026Meanwhile, lawmakers pushed for restrictions on the very contract categories driving most of that activity. The pressure reflects a broader disagreement over what prediction markets actually are. To the industry, event contracts are financial products tied to price discovery and hedging. To critics — including state gaming groups and several lawmakers — they function more like sports betting or gambling products operating under a derivatives framework. That distinction determines who regulates the market, where it can operate, and which rules apply. As platforms expand institutionally and move into commodities and perpetual futures, the gap between those interpretations is becoming harder to contain.Bottom Line This week showed how quickly prediction markets are moving into the financial mainstream. Kalshi raised institutional capital at a scale normally associated with established exchanges, while Flutter positioned prediction markets as another venue for market-making and spread capture. At the same time, the regulatory debate hardened. The CFTC’s comment process exposed a basic divide between firms that view event contracts as financial derivatives and critics who see them as gambling products operating under federal cover. The central question is whether prediction markets will ultimately be regulated like financial markets or gambling products. This article was written by Tanya Chepkova at www.financemagnates.com.

Prediction market operator Kalshi has raised $1 billion in a Series F round that values the company at $22 billion, highlighting how fast event contracts and digital-asset infrastructure are moving into mainstream finance.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)The deal lands as institutional trading on the platform and digital-asset hiring at large banks accelerate, even while crypto-native firms contend with a weaker job market.According to Thursday's announcement, the latest funding round is led by Coatue, with participation from investors including Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest. Kalshi’s institutional activity has climbed sharply in recent months. Over the past six months, institutional trading volume on the platform has risen by about 800%.JUST IN: JPMorgan, Morgan Stanley and BlackRock are now hiring for dozens of crypto jobs— Kalshi (@Kalshi) May 7, 2026Kalshi Pushes Institutional GrowthOver the same period, annualized trading volume has more than tripled, from roughly $52 billion to $178 billion. The company now accounts for more than 90% of U.S. prediction market activity and also holds a majority share of global volume in the segment.Kalshi plans to use the fresh capital to scale its presence among hedge funds, asset managers, proprietary trading firms and insurance companies. The company aims to deepen adoption of event contracts as tools for hedging real-world risks and for extracting continuous, market-based signals on future outcomes.Continue reading: Kalshi’s Legal Argument Tested as Courts Probe ‘Swap’ ClassificationIt intends to expand block trading capabilities, roll out risk-focused products and build deeper integrations with brokers to better match institutional workflows. The growth trajectory reflects a broader view among backers that event contracts can develop into a market measured in the trillions of dollars, with current activity still in the early stages of that shift.Banks Ramp Up High-Paying Crypto HiresAt the same time, large Wall Street firms are stepping up hiring for digital-asset roles that blend blockchain expertise with traditional finance experience. According to Bloomberg, institutions such as JPMorgan, Morgan Stanley, BlackRock, Bank of America, Fidelity, Bank of New York Mellon and Nasdaq have recently posted roles across engineering, product and compliance for digital-asset platforms, tokenization projects and exchange-traded products.Wall Street firms post dozens of crypto jobs: Bloomberg pic.twitter.com/6gIUsrprak— matthew sigel, recovering CFA (@matthew_sigel) May 7, 2026Many of these positions offer base salaries in the $200,000 range or higher, before bonuses. Job descriptions often require six to eight years of experience in areas such as investment banking, corporate development or private equity, alongside knowledge of crypto and distributed-ledger technology.In contrast, crypto-native companies continue to face a softer labor market. Job postings tracked by an industry association have fallen about 25% from November levels, to around 2,200 roles, compared with more than 5,000 at the height of the 2022 bull market. Some major exchanges have announced fresh rounds of layoffs in recent months. Against that backdrop, recruitment firms that focus on both digital assets and traditional finance report a rise in mandates from banks and asset managers that want candidates who can operate within established governance and control frameworks while building tokenization, custody and market-infrastructure solutions. This article was written by Jared Kirui at www.financemagnates.com.

Flutter Entertainment has confirmed it is already making money from prediction markets as a market maker rather than a platform operator. That positioning separates it from the retail-facing exchanges competing for the same users.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)During a recent earnings call, Flutter CEO Peter Jackson addressed investor concerns that prediction markets like Kalshi and Polymarket are eating into the $14 billion U.S. sports betting sector. He argued the opposite: that the growth of event-based trading is a business opportunity for firms with existing risk-pricing infrastructure. "Market-making will be a good contributor to our revenues," Jackson said, adding that the company is "making money from it already" following a trial phase.FanDuel parent CEO on prediction market combos: “We are going to be market making on as many platforms as we can.” They have already started as an MM on at least one platform, he said. https://t.co/bMYYyM4Obm pic.twitter.com/kSFc0ZJJNq— Fairplaygov (@fairplaygov) May 6, 2026How the Model Works Flutter’s approach is to apply its existing odds-setting algorithms to event contracts. As a market maker, the company quotes buy and sell prices, earns the spread, and manages the resulting inventory risk. That makes prediction markets a natural extension of the risk-pricing infrastructure it already uses in sports betting.In late 2024, FanDuel partnered with CME Group to launch FanDuel Predicts, a mobile app offering contracts on S&P 500 levels, oil prices, GDP, and CPI data alongside more familiar event-based markets.The app launched in five states and is moving toward a national rollout. The combination of financial contracts and sports-adjacent markets in a single interface also gives Flutter regulatory flexibility. Event contracts classified as derivatives fall under federal jurisdiction, which allows Flutter to operate in states where sports betting remains restricted.What Is the TimingFlutter announced the move while cutting its full-year guidance after unfavorable sports results. Prediction market revenue offers some diversification, though market-making still carries pricing and inventory risk.Rather than operating a retail prediction market platform, Flutter is focusing on market-making and liquidity provision. The company applies its existing pricing infrastructure to event contracts and earns revenue from the spread between buy and sell prices.That is a different business than running an exchange, and it requires different infrastructure, risk management, and regulatory relationships to sustain. This article was written by Tanya Chepkova at www.financemagnates.com.

eToro has added 19 cryptoassets to its trading platform, pushing its total digital asset menu past 200 names. The new listings include DoubleZero (2Z), Avantis (AVNT), Virtuals Protocol (VIRTUAL), MemeCore (M), Horizen (ZEN), Venice Token (VVV), Illuvium (ILV), Safe (SAFE) and ZetaChain (ZETA), the Nasdaq-listed company said today (Thursday).Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)The Israeli fintech, which became publicly traded in May 2025, frames the rollout as part of its broader effort to widen retail investor access to digital assets within what it markets as a multi-asset platform sitting alongside thousands of stocks, ETFs, indices, currencies and commodities. The new tokens come on top of an existing menu that already covered more than 150 cryptoassets at year-end 2025, according to the company's full-year 2025 results.A Bigger Crypto Menu, While Trying to Sell StocksAdi Lasker-Gattegno, eToro's Director of Liquidity Management and Crypto Operations, said in a statement that "passing the 200 cryptos milestone is a significant moment for eToro," adding that the goal is to give users more ways to engage with the crypto market within the company's multi-asset platform.However, the expansion lands at an awkward moment in eToro's product cycle. The platform spent much of the past year openly steering clients toward traditional markets, after disclosures around its IPO highlighted the extent to which its economics are tied to crypto trading flows.The scale of that exposure is visible in eToro's revenue reporting, though it requires some unpacking. Under IFRS 15, eToro records crypto transactions on a gross basis, meaning it books both the full value of assets sold to users and the corresponding acquisition cost as separate line items. The result is a headline revenue figure that is inflated relative to actual economic contribution. For the full year 2025, eToro reported roughly $12.9 billion in gross crypto revenue against $12.9 billion in costs, out of a total $13.8 billion in gross revenue (94%). On a net basis, crypto accounted for approximately 29% of eToro's $868 million net contribution.When eToro rolled out a cashback program offering UK and European users 1% back in stocks for converting crypto, the contrast between gross scale and net margin was particularly stark: in Q3 2025, $3.97 billion in gross crypto revenue translated into just $77.4 million in net contribution.Crypto Activity Has Cooled in 2026The push to add more tokens follows a notable slowdown in crypto trading on the platform. eToro's full-year 2025 results showed crypto income declined from 2024 levels, which the firm attributed to lower retail trading volumes and reduced market volatility. The pattern has continued into the new year. In February, the company reported that crypto trades dropped 36% year-over-year to 3.3 million, even as capital markets activity surged 81%.That mix shift has not gone unnoticed by investors. eToro shares are down roughly 50% from their May 2025 Nasdaq debut at $67, even after the company posted record net contribution of $868 million for 2025. As FM Intelligence has documented, much of the market's caution has centered on the firm's reliance on retail crypto sentiment and the thin economics of cryptocurrency intermediation. In Q3 2025, eToro turned $3.97 billion in crypto revenue into just $77.4 million in net contribution.Custodial and Non-Custodial, With Regional CaveatseToro said the new tokens can be bought, sold, held, deposited, transferred and converted on its platform, with staking available for eligible assets. The firm offers both custodial and non-custodial wallet options, though it noted that token availability and feature support vary by region and remain subject to local eligibility rules.The company reported 40 million registered users across 75 countries and roughly 3.8 million funded accounts at the end of 2025. Beyond crypto, eToro has also pushed into UCITS/ETFs, neo-banking features and discussions with Kalshi and Polymarket on prediction markets, all part of a wider effort to broaden the revenue base beyond digital assets. This article was written by Damian Chmiel at www.financemagnates.com.

The UK’s Financial Conduct Authority (FCA) has launched an investigation into PayPal, Visa, and Mastercard over concerns that digital wallet arrangements may restrict competition. The probe, for instance, focuses on how PayPal’s wallet is funded and used, placing one of the most widely used online payment systems under regulatory review.Join IG, CMC, and Robinhood in London’s leading trading industry event!Probe Targets Wallet AgreementsThe FCA said it is investigating Mastercard, PayPal, and Visa under Chapter I of the Competition Act 1998. It is also examining Mastercard and Visa under Chapter II of the same law. The regulator suspects that certain agreements linked to PayPal’s digital wallet could limit competition in the UK.The regulator’s investigation puts a spotlight on the same card and wallet rails that many UK‑facing FX and CFD brokers use for client funding. For now, it does not change how traders deposit, but it signals that regulators are looking more closely at the commercial terms behind these “everyday” rails and whether they could distort choice or pricing for payments into trading accounts.PayPal confirmed the development in its financial report. The company said it received notices of investigation and requests for information from the FCA in March 2026. The requests relate to contractual terms between PayPal and the two card networks.“In March 2026, we received notices of investigations and related requests for information from the U.K. Financial Conduct Authority (“FCA”) under the Competition Act 1998 regarding certain provisions in PayPal’s contractual agreements with Visa and Mastercard relating to funding and use of the PayPal digital wallet. We are cooperating with the FCA in connection with these investigations.”The FCA has not reached any conclusions and has not found any breach of competition law. The investigation remains ongoing as the regulator gathers evidence.No Findings at Early StageUnder the Competition Act 1998, Chapter I prohibits agreements that prevent, restrict, or distort competition. Chapter II bans the abuse of a dominant market position. The FCA can issue a statement of objections if it finds potential violations. Companies would then have a chance to respond before a final decision.Continue reading: FCA Wants to Prove London’s Markets Are More Liquid Than Many ThinkThe FCA conducts these investigations separately from its broader financial supervision under the Financial Services and Markets Act 2000. The Competition and Markets Authority can also bring cases under the same law.The outcome of the probe remains uncertain, but it signals closer scrutiny of digital payment systems and the role of major card networks in shaping market access.Many major FCA‑authorized brokers already sit on this stack: IG, CMC Markets, Pepperstone, Plus500 and others support Visa and Mastercard cards, and in several cases PayPal as a funding option alongside bank transfers.Payment Rails that Fund FX and CFD AccountsPublic funding pages show, for example, that IG offers deposits via Visa or Mastercard and PayPal, CMC Markets accepts Visa or Mastercard and in some regions PayPal. Pepperstone and Plus500 also enable funding through Visa, Mastercard and PayPal in addition to bank transfers.Notably, several regulators have already moved against, or closely scrutinized, the same payments firms, mainly on competition and access‑to‑services grounds. In the US, the Federal Trade Commission recently sent formal warning letters to Visa, Mastercard, PayPal and Stripe, telling them not to “debank” or deny services to customers based on political or religious views. It also warned that such conduct could trigger investigations and enforcement under Section 5 of the FTC Act.Last year, Visa and Mastercard agreed to a revised 38-billion-dollar settlement with US merchants in a two‑decade swipe‑fee antitrust case, offering to cut average credit card fees by 0.1 percentage point for five years and cap some consumer rates, even as major retail groups argued the deal still left businesses paying too much to accept card payments. This article was written by Jared Kirui at www.financemagnates.com.

Prediction markets are beginning to develop an algorithmic trading layer similar to traditional electronic markets. A new startup, Elastics, is building tools aimed at accelerating that shift.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!) Elastics, founded by former Goldman Sachs professional Szymon Pawica, has raised $2 million in pre-seed funding to build AI agents for prediction markets. The company is developing what it calls “Trade with Words” — a natural language interface for deploying quantitative strategies without traditional order entry. The model reflects a broader shift in prediction markets, from “wisdom of the crowd” toward competition based on speed, automation, and execution. How Automation Is Reshaping Market Structure Earlier market data already showed how far automation had moved into prediction markets. Public wallet analysis has identified automated bots among many of the most profitable accounts, while arbitrageurs have extracted tens of millions of dollars from Polymarket by exploiting short-lived pricing gaps between venues. Prediction markets are increasingly rewarding execution speed and data processing. This is partly driven by AI systems that accelerate how quickly information is reflected in prices.“As AI-driven automation becomes more widespread, manual trading is becoming increasingly challenging,” Pawica said. The trajectory resembles the evolution of FX, where machine-driven liquidity and execution now account for a large share of volume. That transition took years in traditional markets. In prediction markets, it may happen faster. What This Means for Brokers The infrastructure buildout reframes how prediction markets should be viewed by platforms considering integration. In these markets, bots account for a significant share of volume and pricing gaps are exploited in milliseconds. As a result, they are starting to resemble other electronic derivatives markets in their operational requirements. This implies the need for real-time data feeds, institutional-grade execution, and latency management. Platforms that approach prediction market integration as a simple product extension will be competing against infrastructure built to capture speed and execution advantages. For multi-asset brokers, the key question is how quickly these infrastructure requirements become unavoidable as the market evolves. This article was written by Tanya Chepkova at www.financemagnates.com.

Nearly 40 state attorneys general are now aligned against the prediction market industry's central legal argument, and the Massachusetts Supreme Judicial Court appears inclined to agree with them. Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)During oral arguments in Kalshi’s appeal, justices questioned whether Dodd-Frank’s swap definition can override state gambling law. That question matters directly for brokers and platforms considering prediction market integration.The Swap Argument and its Limits Kalshi’s defense rests on the 2010 Dodd-Frank Act, which broadened the definition of a “swap” and placed event contracts under the exclusive federal jurisdiction of the Commodity Futures Trading Commission (CFTC). On that basis, Kalshi argues Massachusetts has no authority to regulate or ban its contracts. However, Chief Justice Scott L. Kafker pushed back directly. "If you want to gamble on a game, this is one way of doing it, right?" he asked. "This does seem to have a major aspect of sports gambling to it." Some justices acknowledged that Kalshi's exchange structure — where users set odds against each other rather than against a house — more closely resembles a financial market than a traditional sportsbook. That distinction did not appear to move the court toward Kalshi's position. State officials maintain that absent state-level consumer protections, a material regulatory gap exists regardless of how the product is classified under federal derivatives law.A Coordinated State Response The amicus coalition backing Massachusetts spans nearly 40 state attorneys general across party lines. Their argument is straightforward: if a product functions like a bet, it must be licensed and taxed as gambling. In New York, that tax rate reaches 51%. This coalition is directly opposed to the current CFTC, which under the Trump administration has defended its sole authority over prediction markets. The CFTC’s rulemaking on prediction markets drew more than 1,500 public comments, and those submissions showed a clear split. Financial firms and crypto investors, including Coinbase and Andreessen Horowitz, argued for federal derivatives treatment, while gaming regulators across multiple states pushed for state gambling oversight.What the Ruling Means for Brokers and Platforms Kalshi’s victory would confirm the CFTC’s federal preemption argument and allow brokers to offer event contracts within standard trading accounts without triggering state gambling licensing requirements.A loss would hand states a workable legal template to override federal preemption. Firms looking to enter the space would then face a state-by-state licensing and taxation regime — a cost structure that would likely price out all but the largest platforms. The case is a likely precursor to U.S. Supreme Court review. Until that question is resolved, the industry’s reliance on federal derivatives classification remains uncertain. It depends on whether courts treat sports event contracts as derivatives rather than bets — a position Massachusetts is not prepared to take. This article was written by Tanya Chepkova at www.financemagnates.com.

Cross-border payments have mostly been limited to cash or cards. But imagine travelling to a new country and paying using their payment app from your home country just by scanning QR codes. In Asia, this is now a reality.When it comes to payments in Asian countries, the level of integration is higher and is also growing fast. Ant International has enabled cross-border payments via local payment apps, allowing anyone to scan a payment QR code in another country with their local app to make instant cross-border payments.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)The Singapore-headquartered company recently showcased its cross-border capabilities to several media platforms, including Finance Magnates, and industry analysts at an event in Malaysia. This included a real-world QR-based cross-border payment experience.Cross-Border Payments with QRThe end experience is simple: someone from Vietnam can visit Malaysia (or any other supported country) and scan local QR codes with their home country’s payment app. The cross-border transaction happens instantly.For travellers, this removes the need to carry foreign currency, while merchants can reduce the high fees often linked to credit card transactions.Ant International’s global e-wallet gateway, Alipay+, now connects to more than 40 digital wallets worldwide. This expands the network to over 150 million merchants and more than 2 billion customers.The network includes more than 10 national QR systems, including Singapore's SGQR, Malaysia's DuitNow, South Korea's ZeroPay, Thailand's PromptPay, Indonesia's QRIS, and Sri Lanka's LankaPay.The partnership also extends to countries such as Vietnam, Mexico, and Saudi Arabia.“A broader and deeper network means we can work with more partners at different levels to deliver more innovative, trusted, and high-return fintech solutions in the world's fastest-growing markets,” said Peng Yang, CEO of Ant International.QR-Based Payments Are Shadowing CompetitorsThe global QR code payment market was valued at approximately $14.7 billion in 2024 and is projected to grow to $38.2 billion by 2030, at a CAGR of 17 per cent.More optimistic estimates from Market.us place the market at $14.3 billion in 2025, growing to $118.2 billion by 2035 at a CAGR of 23.5 per cent. Juniper Research projects total QR payment spending to reach $3 trillion globally by 2025, with over 2.2 billion people using QR payments.Asia-Pacific is the clear global leader, holding a 52.6 per cent share of the QR payment market in 2025, worth $7.53 billion in revenue. The region is growing at roughly twice the rate of Europe and North America, and Juniper Research forecasts that the value of APAC QR payments will grow by 300 per cent by 2029, up from $290 billion in 2025. Countries driving this next phase include Vietnam, Indonesia, and the Philippines.China clearly leads, with more than 90 per cent of mobile payments being made using QR codes.Ant International’s aim, meanwhile, appears to be to capture this mobile payments growth across the region, if not beyond. Its platforms already process an average of over 20 million transactions daily.Yang also highlighted the company’s strategy to combine its four primary businesses, Alipay+, Antom, Bettr, and WorldFirst into a connected solution for businesses of all sizes. It is also using AI in many of its solutions, including an agentic mobile protocol, an AI-as-a-service platform, and several others. This article was written by Arnab Shome at www.financemagnates.com.

The CFTC has closed public comment on its proposed prediction market rule, receiving more than 1,500 responses. What came back was not a policy debate but a structural deadlock: event contracts as financial derivatives, or event contracts as gambling dressed in legal cover.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)As Better Markets put it, “prediction markets offer the ability to gamble without the regulations that normally accompany gambling.” The volume alone signals that this is a fight over market structure and over who gets to regulate a fast-growing market already handling billions in volume and expanding rapidly across new asset classes. The Financial Case Coinbase, Kalshi, and investors such as Andreessen Horowitz all argued that event contracts are swaps that fall under the CFTC's federal authority. Their argument centers on function: price discovery, information aggregation, and hedging — the same pillars used to justify traditional derivatives markets. “Event contracts are ‘swaps’ that Congress has placed squarely within the CFTC’s authority,” wrote Faryar Shirzad, Coinbase’s chief policy officer. Coinbase went further, calling prediction markets “a public good with broad benefits.” The industry wants the CFTC to assert exclusive jurisdiction and preempt the state-level gaming laws it describes as a barrier to market access. Without federal cover, operators face a patchwork of licensing regimes that vary by state — and in some cases outright prohibitions. Operators also warned that restricting regulated venues would not eliminate demand, but displace it. “When a contract type is prohibited… demand migrates to unregulated offshore platforms,” Kalshi noted.LATEST: ⚡ Andreessen Horowitz is urging the CFTC to preserve federal oversight of prediction markets, arguing state restrictions create barriers to fair market access. pic.twitter.com/kpnKLuGzjg— CoinMarketCap (@CoinMarketCap) May 4, 2026 The Gambling Case State gaming regulators from Tennessee, Missouri, and Pennsylvania, along with consumer group Better Markets, pushed back hard. Their core argument is legal, not just moral: these contracts lack a direct economic purpose and therefore fall outside the definition of legitimate derivatives. “Nobody ‘trades’ on sporting events. People bet on sporting events,” Better Markets wrote. In their view, such contracts are not just misclassified — they are “contrary to the public interest.” Critics argue that if most Americans experience these contracts as a bet, then functionally they are a bet — regardless of what the underlying instrument is called. What the CFTC Decides Next The more consequential argument may be behavioral rather than legal. Critics argue that contracts on elections, war, or death do more than resemble gambling — they risk creating perverse incentives around real-world outcomes, from political processes to geopolitical events. As Rep. Paul Tonko argued in his submission, most Americans experience these contracts as gambling. For brokers and trading firms eyeing this space, the outcome is binary. A ruling in the industry's favor would confirm federal preemption and allow integration of event contracts into standard trading accounts. A ruling against would push regulatory authority back to the states, where a license-by-license buildout becomes the only path forward — slow, expensive, and uncertain in states where gambling law is deliberately broad. The CFTC is to decide deciding whether prediction markets become part of the global financial system — or remain classified as a form of regulated gambling. In practice, that means choosing between Wall Street’s infrastructure and the regulatory logic of Las Vegas. This article was written by Tanya Chepkova at www.financemagnates.com.

The U.S. Commodity Futures Trading Commission has opened a formal review of its Commitments of Traders reporting framework, with prediction market platforms now squarely in scope.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!).CFTC Chairman Michael Selig announced the review on Thursday. COT reports are a foundational data set in commodity markets — hedge funds and commercial end-users rely on them to track positioning in everything from grain to natural gas. Platforms like Kalshi, which have recently moved beyond political and sports contracts to launch dedicated commodities hubs covering agricultural products, natural gas, and lithium, have not previously been required to contribute position data to those reports. CME Group and ICE have. "After significant outreach and communication with the agricultural community and commercial end users, the Commission is examining the current structure and publication of our COT Reports," Selig said.We’ve listened to the agricultural community and commercial end users. Today, the @CFTC issued a Request for Comment as the Commission examines the current structure and publication of our Commitments of Traders reports. Public comment will give us vital perspective as we…— Mike Selig (@ChairmanSelig) April 30, 2026Closing the Reporting Gap The review focuses on three areas. First, whether binary options and event-driven contracts should be integrated into COT reporting. Second, whether a weekly publication cycle is sufficient for markets that operate continuously. Third, how much granularity the CFTC can require without disclosing commercially sensitive positioning data.Ahead of the formal review, Kalshi agreed to restrict trading hours on its agricultural contracts to match traditional exchange schedules. The change followed pressure from the Commodity Markets Council, which represents major physical traders.The hours restriction and the COT review are connected. Both moves point in the same direction. When prediction market contracts overlap with physical commodities, the CFTC applies the same transparency standards as established exchanges. The $800 trillion derivatives market does not have a separate lane for newer entrants. What it Means for the Industry For institutional brokers and exchange operators, the review's direction is more significant than its outcome. The CFTC is treating prediction markets as part of the commodity market structure, not a parallel experiment operating under softer rules. That shift in framing changes the compliance calculus for any platform with ambitions beyond retail event contracts. This article was written by Tanya Chepkova at www.financemagnates.com.

A U.S. soldier was indicted for using classified information to trade on Polymarket. At the same time, lawmakers in Congress moved to restrict trading by their own members.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!). Three events in two days converged into one argument: the regulatory frame for prediction markets is being written right now. Here's what mattered this week. What Moved the Prediction Markets This Week A Soldier’s Bet on Maduro On April 25, the DOJ unsealed a criminal indictment against U.S. Army Master Sergeant Gannon Ken Van Dyke, who allegedly used classified information about a military operation targeting Nicolás Maduro to trade on Polymarket. He placed about $33,000 in bets and reportedly made roughly $400,000 in profit. The case immediately drew attention to both major prediction market platforms. Kalshi said it does not permit war-related markets and actively enforces insider trading rules. Polymarket said it supports regulatory efforts to address insider trading. The distinction between a regulated exchange and an offshore platform became part of the political debate. Congress Moves from Letters to Rules On April 30, lawmakers escalated their response to prediction markets. A group of senators urged the CFTC to ban several categories of contracts, including those tied to elections, sports, and military actions. The focus on sports is not incidental. According to data cited in the letter, sports contracts account for roughly 87% of Kalshi’s volume. Hours later, the Senate passed a resolution barring its own members and staff from trading on prediction markets, effective immediately. The shift from letters to formal action marked a clear change in tone from Congress.? JUST NOW: US Senate UNANIMOUSLY passes a ban on Senators and their staff from engaging in prediction market trading, such as Polymarket or KalshiSEN. BERNIE MORENO: It deteriorates the confidence our constituents have in us! "I am presenting a resolution that makes that… pic.twitter.com/ifmSG65OmF— Eric Daugherty (@EricLDaugh) April 30, 2026Hyperliquid Tables a Prediction Markets Proposal On April 30, Hyperliquid moved to add prediction markets to its platform. The decentralized exchange, which has processed over $1 trillion in derivatives volume, is bringing event contracts into its existing offering. HIP-4, a governance proposal to add prediction markets to its platform, is currently in public testing. It would allow traders to bet on real-world outcomes from the same margin account used for perpetual futures. The move positions Hyperliquid as a direct competitor to Polymarket on the offshore side. Quote of the Week On April 25, crypto investor and writer Nic Carter posted a thread on X arguing that insider trading is not a bug that prediction markets can engineer away — it is a feature built into the model. Carter, who has over 100,000 followers, published a full piece on the subject the same week. His argument put pressure on both platforms' claims that disciplinary enforcement solves the problem.https://t.co/pjq72w6RJ5— nic carter (@nic_carter) April 25, 2026Number of the Week $39.7 billion is estimated value of sports event contracts within Kalshi’s total volume for the year ending February 2026, based on figures cited in Senator Merkley’s April 30 letter to the CFTC. The number highlights what is at stake: the category lawmakers are targeting accounts for the bulk of trading activity on the platform. The Friction of the Week The week’s central tension is between self-regulation and regulatory legitimacy. Kalshi spent two years securing a CFTC license and positioning itself as a “responsible” platform. It built compliance systems and even suspended three congressional candidates to demonstrate that enforcement is real. But those cases involved small amounts and internal sanctions. The case of a U.S. Army soldier accused of making about $400,000 using classified information changed the scale. Even though the trades took place on Polymarket, the regulatory response extended to the entire industry. The lesson is clear: regulated status does not shield a platform from broader consequences. When a high-profile incident occurs on an unregulated competitor, lawmakers respond to the category as a whole. Bottom Line This week’s events formed a single chain. The soldier’s indictment on Friday gave Democrats a concrete case to act on, leading to a formal push against the industry by midweek. The regulatory moment the market had anticipated for two years arrived in the span of 72 hours. The question now is how the CFTC will respond to more than 115,000 public comments while facing political demands to ban the segment that generates most of the volume on regulated platforms. Those platforms are now caught between tighter rules from above and growing competition from decentralized exchanges like Hyperliquid operating outside U.S. oversight. This article was written by Tanya Chepkova at www.financemagnates.com.

The global fintech sector is going through a major period of change. To keep up, companies must focus on training to prepare the next generation of staff. Addressing this need, Finance Magnates Academy (FM Academy) is growing its platform to serve new industry entrants, fintech professionals, and HR departments.As part of this expansion, the Academy is adding three specific courses to its current lineup:Fundamentals of the Fintech and Online Trading SpaceUnderstanding Brokerage Models and Market AccessBuilding a Career in FintechTogether, these three modules make up the ‘Foundations’ bundle. This package is built specifically for businesses that need to onboard new talent efficiently while also giving existing staff the tools to grow.Access the courses hereTo browse all available fintech courses, simply select 'Fintech' under the Categories menu on the courses page.The Need for Improved TrainingAs industry rules get stricter and a younger workforce enters the office, many firms find that new staff lack the specific knowledge needed to be effective from day one. These gaps cause delays that are costly for any business, especially one that depends on technical skill and fresh talent.As a top authority in the B2B and online trading space, FM Academy worked with some of the best minds in the field to create these lessons. The goal is to set a clear, high standard for companies, brokers, and HR agencies, backed by official certification."This industry is moving at a pace that often outstrips traditional training methods, creating some obvious pain points and issues for companies. With FM Academy, our goal is to provide a standardized knowledge base that helps firms onboard new staff and educate existing talent across any business in this space. Education is the best way to secure the future of this space,” explained Jeff Patterson, Head of Education.Each course provides a deep look at the industry from an insider's view. Completing a course earns a certification badge that carries real weight across the sector.Course 1: Fundamentals of the Fintech and Online Trading SpaceThe first hurdle for any new hire is the difficult terminology and the sheer scale of the industry. Without a solid base, it is hard for staff in marketing, sales, or support to understand how their roles fit into the bigger picture.Using insights from veterans with over a decade of experience, this course provides a baseline for any role. Participants will learn how the industry is structured and how different parts of the sector work together. It is an essential tool for any company that hires new people on a regular basis.Course 2: Understanding Brokerage Models and Market AccessBeyond the theory, there are the actual mechanics of how the industry functions. It often takes years to learn this space, but the specialized nature of modern roles means employees need to understand broker operations much sooner.This course explains exactly how trade orders move through the market every day. It provides a look "under the hood" of the trading lifecycle, showing how traders interact with the system from start to finish.Course 3: Building a Career in FintechThe final course in the bundle focuses on people. It provides a clear map of key job families and shows how they fit together in a successful firm. Participants will learn about roles at every level, from entry-level positions to the C-suite.This interactive curriculum outlines real career paths, helping staff identify the skills they need to move into management and senior roles. This helps companies build their next generation of leadership from within.An Investment in PeopleIt is always better to keep good talent than to keep hiring new people. Finding quality staff who fit a company culture is a major challenge for any business.FM Academy helps firms train new staff quickly and removes the need for HR teams to write their own training manuals that quickly go out of date. By launching these three courses, FM Academy is helping build a better future for the industry. It ensures that as the market changes, the people working in it stay ahead of the curve.In 2026, the most valuable asset a firm can have is a team that truly understands the business.About FM AcademyFinance Magnates Academy (FM Academy) is a training platform for fintech professionals, regulated firms, and HR teams. It offers online lessons, structured learning paths, and verified digital certificates. The platform helps professionals and businesses complete and prove their annual compliance and CPD requirements while providing essential education for all industry participants. This article was written by Finance Magnates Staff at www.financemagnates.com.

Prediction markets promise retail users a direct way to bet on real-world outcomes. However, new data shows that profits are concentrated among a small group of traders.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)A Bloomberg News analysis of every active Polymarket wallet since the start of 2025 shows how those profits are distributed. More than 100,000 wallets lost at least $1,000 — nearly double the number that gained the same amount.Distribution of Gains and LossesThe bulk of profits went to a small group of high-volume traders, likely running automated strategies. Strip out those top winners and the rest of the user base recorded a combined net loss of $131 million.Separate on-chain analysis points in the same direction. One study found that roughly 70% of Polymarket trading addresses have recorded realised losses, with profit distribution similarly concentrated in a small fraction of accounts. "If you want to participate and you want to make a living out of this, you better be pretty darn good," said Charles Martineau, a professor at the University of Toronto's Rotman School of Management.Why the Structure Produces This Outcome The pattern reflects how open exchanges work. Traditional sportsbooks often limit or ban consistently profitable bettors to protect their margins. Polymarket does not. That makes it an attractive venue for quantitative traders who treat retail order flow as a source of liquidity — and as retail activity grows, conditions for systematic strategies improve alongside it. The dynamic is not specific to prediction markets. It closely resembles outcomes in leveraged retail trading, where regulators in multiple jurisdictions have documented for years that a majority of accounts lose money. What This Means for Brokers and Platforms For quantitative funds and high-frequency traders, the Bloomberg data confirms what many already suspected: a large and consistent pool of less-informed flow on an accessible, regulated platform. For brokers distributing these markets, the dynamic is familiar: most retail clients lose money, as in other leveraged trading products. The difference is how that outcome is framed, and how regulators may respond when detailed loss data is revealed. This article was written by Tanya Chepkova at www.financemagnates.com.

David Marcus, the former President of PayPal and the executive who led Meta’s shelved Libra digital currency project, is making a new push to rebuild banking on stablecoin rails. He now runs Lightspark, which has unveiled an API-based product that gives platforms and AI agents access to dollar accounts, payments and cards on top of Bitcoin and stablecoin infrastructure.The latest offering launch pushes Banking-as-a-Service into the stablecoin era, giving platforms and AI agents access to dollar accounts, payments and cards over Bitcoin-based rails instead of traditional bank stacks.The move marks a new phase in Marcus’s long-running effort to make money move like internet data, and it comes as regulators and businesses start to treat stablecoins and agent-driven interfaces as mainstream infrastructure.Onchain BaaS for Platforms and AgentsAccording to a Tuesday's post, Marcus explained that the product lets companies offer branded dollar accounts, stablecoin balances, yield, payments and cards, with Bitcoin and stablecoins handling settlement in the background rather than sponsor-bank sub-ledgers.In practical terms, Lightspark’s Grid Global Accounts compete most directly with emerging stablecoin-native banking stacks that let platforms embed accounts, payments and yield behind an API. Offerings around Stripe’s Bridge, Agora and Bastion, for example, focus on either white-label stablecoin issuance, enterprise stablecoin infrastructure, or stablecoin payments that settle into fiat balances.Continue reading: Dollar-Pegged Stablecoins Surge to $313B in Risk-Off Pivot amid US–Iran ConflictLightspark built the accounts on top of its Grid network and Spark, a Bitcoin Layer 2 that supports stablecoin issuance and low-cost transactions while remaining compatible with Lightning. The firm already connects to real-time and domestic payment systems in over 65 countries and works with partners such as Cross River Bank to support 24/7 fiat settlement via RTP, FedNow and multi-rail infrastructure.“Marcus has THE most fascinating back story: Former CEO of PayPal, has moved money traditionally, and is behind Libra at Meta a global bank account and "stablecoin" that regulators pushed back on,” Simon Taylor, the Founder of FintechBrainfood observed. “Now this is a global stablecoin bank account distributed through an API, post-GENIUS Act, sold to businesses and machines.”Marcus positions the launch as an alternative to classic BaaS architectures built on middleware, card processors and FBO accounts at sponsor banks. He argues that in the legacy model, platforms build user relationships but lose fees and data to intermediaries each time money moves, while under the new model they keep yield, interchange and FX margin alongside transactional intelligence. Regulatory Clarity and AI Agents Shape the TimingLightspark’s announcement leans on a changed regulatory and technology backdrop compared with Marcus’s earlier Libra attempt at Meta. Since then, the US GENIUS Act has created a federal framework for payment stablecoins, and MiCA has taken effect in the EU, giving enterprises clearer rules on issuance, reserves and supervision.Meta’s Libra project, which Marcus led before it rebranded to Diem, never made it to full launch after intense pushback from regulators and policymakers around the world. Facebook announced Libra in 2019 as a global stablecoin backed by a basket of currencies and governed by the Libra Association, but the plan quickly drew scrutiny from US and European authorities over monetary sovereignty, financial stability and data concerns, prompting high-profile backers such as Visa, Mastercard and PayPal to walk away. Under pressure, the initiative pivoted to a narrower model of single-currency stablecoins and rebranded as Diem, yet it still failed to secure regulatory comfort; by early 2022 the Diem Association agreed to sell its intellectual property and other assets to Silvergate Capital for about 182 million dollars, effectively winding down the project and forcing Meta to shut its linked Novi wallet pilot later that year. This article was written by Jared Kirui at www.financemagnates.com.