Despite widespread hype, the adoption of tokenization in capital markets remains at a very nascent phase. Most stakeholders are only experimenting with the technology and applications are largely focused on fixed-income products including bonds and money market funds (MFFs), according to a new report by the International Organization of Securities Commission (IOSCO), the global entity representing securities and futures regulators from around the world. The report, produced by IOSCO through its Fintech Task Force’s Financial Asset Tokenization Working Group (TWG), provides an overview of the current state of development and adoption of tokenization and distributed ledger technology (DLT) in capital markets products and services, drawing on literature review, regulatory surveys, and stakeholder outreach. According to the report, tokenization is gaining interest and initiatives are emerging across lifecycle activities. However, progress remains uneven across asset classes, and overall still at a very nascent stage. The study found that while interest in tokenizing capital-markets products is split equally across the jurisdictions studied, actual adoption, reflected in commercialized use cases, is actually really low with the vast majority of respondents (91%) indicating no or very limited tokenization use cases. Further highlighting the nascent stage of the sector, the study found that most jurisdictions are reporting more experimentation of tokenization (57%) than actual use cases (43%). Fixed-income products among top applications Despite limited adoption overall, interest is growing in specific products and activities. In particular, fixed-income products, including bonds and MMFs, are leading in both the size and number of tokenized issuances. Since 2021, more than US$5 billion in tokenized fixed-income instruments has been issued, including US$3 billion being issued in 2024 alone. That amount represents a 3.5 times increase between 2023 and 2024. McKinsey estimates that roughly US$10 billion worth of tokenized bonds have been issued in the past decade. Despite growth, tokenized issuance remains small compared to the US$140 trillion outstanding amount globally. Amount of tokenized fixed income instruments issued (by type of trial), Source: Final Report on Financial Asset Tokenization, International Organization of Securities Commissions (IOSCO), Nov 2025 Tokenized bonds are typically issued directly on the blockchain, with the tokens representing ownership of the assets. Some operators may take steps to provide greater assurance of settlement finality, often involving regulated central securities depositories (CSDs). The trading and post-trade activities of tokenized bonds are often integrated with traditional exchanges and clearing houses to provide investors with the option to use traditional financial infrastructure. Examples include UBS’s CHF 375 million bond issued on the SIX Digital Exchange in 2022, digital bonds issued by the city of Lugano in Switzerland, as well as DBS’s first tokenized bond of SGD 15 million (US$11.5 million) in 2021. MMFs, meanwhile, are typically tokenized at the fund level. Tokens are issued on a blockchain, representing ownership of fund shares or units, while the fund’s assets are managed in the same manner as conventional funds. Blockchain records may serve as proof of ownership or merely as a back-up record, and issuers and transfer agents typically have the ability to correct them when necessary, such as in the case of fraud. Examples include the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which invests in very short-term, safe assets such as US Treasuries, and repos, and is built on Ethereum; the Franklin Templeton OnChain US Government Money Fund (FOBXX), which is deployed on several blockchain including Stellar, Polygon, and Arbitrum; as well as sgBENJI, a US dollar MMF token issued on the XRP Ledger and launched by DBS, Franklin Templeton and Ripple. Risks and opportunities The IOSCO study found that overall, stakeholders in the capital markets are recognizing the potential of tokenization to address various market inefficiencies present in the lifecycle of financial assets, such as information asymmetries, search frictions, transaction costs, and counterparty risks. Shared and programmable ledgers can reduce frictions in issuance, trading, servicing, and redemption by linking assets directly to ledger-based ownership records. Tokenization can also reduce counterparty risk, thanks to atomic settlement, and faster distribution of dividends and interest. Tokenization also allows for fractionalization, broadening access to traditionally illiquid assets by lowering minimum investment sizes, and helping to improve liquidity and diversify risk. Finally, tokenization supports product innovation, enabling bespoke instruments, automated income flows, streamlined asset servicing, and improved environmental, social and governance (ESG) standard tracking. Despite the opportunities, the report emphasizes that tokenization also introduces new risks. Greater sharability and programmability may facilitate wider and faster spread of shocks across the markets and thereby increase the cost of operational risk events. Furthermore, new process flows or intermediaries with roles such as token minters, and DLT platform developers, can reshape traditional activities, causing disruption. Tokenization also introduces new complexities due to its reliance on DLT, which existing laws are not designed to accommodate, and ownership and investor rights can be unclear. But more importantly, DLT networks themselves pose risks. Because blockchains rely on consensus across nodes, they can experience forks, resulting in a split into two distinct networks. This makes it unclear which version is the authoritative record of ownership. Both public and permissioned blockchains can also be targeted by cyberattacks, including attempts to take over the network or exploit weaknesses in node management. Data privacy is another challenge. Because blockchains are transparent and immutable, this can conflict with legal privacy requirements. It can also create market-integrity risks if visible transaction flows trigger panic or manipulation. Fragmentation across different, non-interoperable DLT networks is also a critical issue, creating liquidity silos and introducing vulnerabilities in the bridges that link networks. Other challenges include delays and high transaction fees due to network congestion, money-laundering risks, and smart contract vulnerabilities. McKinsey estimates that total tokenized market capitalization could reach around US$2 trillion by 2030, excluding cryptocurrencies and private stablecoins. In a bullish scenario, this value could double to around US$4 trillion, it predicts.   Featured image: Edited by Fintech News Switzerland, based on image by thanyakij-12 via Freepik The post Adoption of Tokenization in Capital Markets Remains Limited appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Danish fintech Flatpay, which provides card payment solutions for SMBs, has reached unicorn status with a valuation of €1.5 billion, just three years after its founding. The startup has raised €145 million in its latest funding round, led by AVP and Smash Capital, with participation from Dawn Capital, which had backed its US$47 million Series B, and former German footballer Mario Götze. Flatpay’s growth strategy focuses on offering small merchants a flat transaction rate for its card terminals and point-of-sale systems, targeting the segment that accounts for 99% of European businesses. According to TechCrunch, the company now serves around 60,000 customers, up from 7,000 in April 2024. CEO and co-founder Sander Janca-Jensen highlighted the startup’s financial progress: Sander Janca-Jensen “We crossed €100 million of ARR in October,” he said, noting that the figure is growing by roughly €1 million per day. “The plan for 2026 is to grow another 300%, so hopefully leave the year with between €400 and €500 million of ARR.” Flatpay employs 1,500 staff, referred to internally as “flatpayers”, and plans to double this number by the end of next year, alongside expanding into one or two new markets. Its growth model relies heavily on in-person onboarding, with sales staff visiting SMBs directly to explain pricing and provide card terminals for demonstrations. Janca-Jensen described this hands-on approach as central to acquiring customers: “Every sales person has that suitcase.” While the approach increases customer acquisition costs, the company argues it accelerates growth by generating demand and supporting high retention. Flatpay also integrates AI for real-time features and is experimenting with voice agents, while planning a gradual rollout of a broader banking suite for SMBs, including cards and accounts. Janca-Jensen said the aim is to allow SMB owners to “eat the elephant one bite at a time.”     Featured image credit: Edited by Fintech News Switzerland, based on image by rawpixel.com via Freepik The post Danish Fintech Flatpay Reaches Unicorn Status appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

OpenAI and Intuit have announced a multi year strategic partnership that will bring new Intuit app experiences into ChatGPT and expand Intuit’s use of OpenAI’s frontier models under an agreement valued at more than US$100 million. The partnership will extend Intuit’s use of OpenAI models across a range of functions within its platform. It builds on Intuit’s long running investment in data, AI and fintech, enabling the company to deliver more personalised services at greater speed and scale. OpenAI models will support selected Intuit artificial intelligence agents across its products. These agents will assist with tasks such as cash flow forecasting, tax preparation and payroll management, operating under Intuit’s existing privacy, security and responsible artificial intelligence frameworks. Intuit will also continue using ChatGPT Enterprise internally to support employee productivity. Fidji Simo “Intuit’s AI powered financial platform helps millions of people manage their finances and run their businesses,” said Fidji Simo, Chief Executive of Applications at OpenAI. “This partnership combines our most advanced models and global scale with Intuit’s platform capabilities to help everyone make smarter financial decisions and build more secure futures.” Intuit apps will soon be accessible within ChatGPT, allowing users to take secure and personalised financial actions. This will connect Intuit’s proprietary financial data and AI systems with OpenAI’s models. Sasan Goodarzi “We are taking a massive step forward to fuel financial success for consumers and businesses, unlocking growth for both companies,” said Sasan Goodarzi, Chief Executive of Intuit. “Our partnership combines the power of Intuit’s proprietary financial data, credit models and artificial intelligence platform capabilities with OpenAI’s scale and frontier models to give users the financial advantage they need to prosper.” Consumers will be able to use Intuit apps within ChatGPT to receive personalised insights and take relevant actions, including identifying suitable credit products, receiving clearer tax guidance, estimating refunds, connecting with tax specialists and improving their financial position. For businesses, Intuit apps will provide tailored insights to improve cash flow, automate follow ups and support email marketing efforts, using real time business data. The partnership aims to help businesses increase revenue and profitability through more targeted insights and reduced effort.   Featured image credit: Edited by Fintech News Switzerland, based on image by ttonaorh via Freepik The post Intuit to Integrate Financial Apps with ChatGPT appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Zilch, the consumer payments platform, has announced a multi-year agreement with Arsenal to become the club’s Official Way to Pay. The partnership, Zilch’s first in sport, covers both the men’s and women’s teams and will introduce its flexible payment options to Arsenal supporters. As part of the launch, Zilch will provide £50,000 in discounts for fans shopping on Arsenal Direct. From 12pm on 21 November, the first 1,000 supporters who spend £50 or more online will receive £50 off their purchase. Supporters will also have access to up to 10% savings in-store at the Armoury and opportunities to win tickets, access merchandise releases, enjoy hospitality, meet players, and join stadium tours. Zilch said the partnership aligns with its aim to offer alternatives to high-cost credit by providing payment tools designed to benefit users. Philip Belamant, CEO and Co-Founder of Zilch, said: Philip Belamant “We have spent the past five years building a customer base of over 5 million highly engaged users, and we’ve done so organically through the strength of our proposition. We are hugely excited as we now embark on our first brand partnership with one of the most recognisable brands in the world, Arsenal.” Juliet Slot, Chief Commercial Officer at Arsenal, said: Juliet Slot “We are delighted to welcome Zilch to the Arsenal family as a new Partner. Zilch is a new and exciting proposition… Their support and investment will help drive our ambition to win major trophies.”     Featured image credit: Zilch The post Arsenal Names Zilch as Official Payment Partner in Multi-Year Deal appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Julius Baer has selected software provider Temenos to replace its ageing core banking system in Switzerland, according to four people familiar with the matter, as the bank moves to modernise critical infrastructure amid rising regulatory demands. Reuters reports that CEO Stefan Bollinger announced in June the creation of a new digital business transformation function and the launch of a project to update the bank’s Swiss IT systems, without disclosing the supplier’s identity. Stefan Bollinger “It has to be done, and I want to do a substantial proportion in the current strategic cycle,” Bollinger said, referring to the period ending in 2028, citing increasing regulatory requirements as a key driver. The bank is aligning its Swiss systems with Temenos’ T24 platform, which Julius Baer already uses in Singapore and Luxembourg, two of the sources said. The lender is also adding a Temenos wealth management interface for relationship managers and high-net-worth clients, according to one source. Temenos generally signs new deals under a subscription model, with cash flows spread over five years, according to Reto Huber, an analyst at consultancy Research Partners. Switzerland introduced a requirement in 2016 for banks to use computer-based systems to monitor transactions, increasing the need for digital customer data, according to financial regulator FINMA. Julius Baer, which remains under a FINMA enforcement procedure related to losses tied to the failed Signa property group, said the IT overhaul is unrelated to the ongoing assessment. “The IT infrastructure programme in Switzerland is not an operational risk issue, rather an initiative to gain strategic flexibility in pursuit of the bank’s future ambitions,” it said.     Featured image credit: Edited by Fintech News Switzerland, based on image by brilian via Freepik The post Julius Baer Picks Temenos to Overhaul Swiss Core Banking Systems appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Prediction markets have grown rapidly, driven by regulation, a dynamic fundraising landscape, and rising mainstream adoption, especially in sports. That momentum is projected to continue as major financial institutions enter the space, and as new markets and decentralized finance (DeFi) technologies push the sector to new heights, according to a new report by Sporting Crypto, a sports and blockchain media and intelligence company. Prediction markets: an overview Prediction markets are marketplaces designed to aggregate information and forecast future events by allowing participants to buy and sell contracts based on the outcome of these events. These platforms essentially allow users to “bet” on what will happen, with prices reflecting the collective belief about the probability of each outcome. Prediction markets have existed in the US for decades but only bursted into the mainstream in the fall of 2024 after Kalshi, a federally regulated derivatives exchange and clearinghouse, began offering contracts based on the outcome of political events. The Commodity Futures Trading Commission (CFTC), then under the Biden Administration, sought to prohibit such contracts, arguing that they resembled gambling and contrary to the public interest. However, Kalshi sued the CFTC in court and won. Momentum builds in prediction markets Since Kalshi’s 2024 legal victory, and following other bullish CFTC decisions, the popularity of prediction markets has grown steadily and expected to cover crypto, climate, economic, financial, corporate, and sports events. A multi-year legal timeline, Source: Predicted: The State of Prediction Markets 2025, Sporting Crypto, Nov 2025 Crypto-native platforms have emerged as highly influential, led by players such as Polymarket, a decentralized platform for trading on global events, often using cryptocurrencies; and Augur a decentralized, blockchain-based prediction market. The sector also comprises regulated exchanges like Kalshi, which offers contracts on political, economic, and weather events; as well as PredictIt, a US-based political prediction market, popular for elections. Polymarket and Kalshi currently dominate the market, accounting for 98% of the total volume in prediction markets, according to Sporting Crypto. Volumes have surged over the past year, rising 580% from roughly US$50 million in August 2025 to about US$340 million in November 2025. Kalshi and Polymarket volumes, Source: Predicted: The State of Prediction Markets 2025, Sporting Crypto, Nov 2025 Sports now lead prediction-market activity. Over the last 12 months, Kalshi derived 59.3% of its volume from sports versus just 19.8% from politics. More recent data shows that Kalshi’s sports concentration has surged even higher, approaching about 90% of volume as the company double down on its CFTC-approved sports betting advantage. Polymarket, meanwhile, has a more diversified distribution, with about 35% from sports and 47% from politics, in addition to meaningful presence across verticals like crypto, reflecting its broader prediction market positioning. Kalshi and Polymarket volume by category, Source: Predicted: The State of Prediction Markets 2025, Sporting Crypto, Nov 2025 In addition to bullish regulatory developments, venture capital (VC) activity in the sector has also fueled the growth of the prediction markets sector. Since 2015, prediction-market startups have raised US$3.1 billion, with US$2.7 billion, or 87% of that total, raised in 2025 alone. Polymarket (US$2.15 billion) and Kalshi (US$485 million) secured 90% of this year’s funding. Coinbase Ventures has been the most active investor in 2025, with five deals so far. Major traditional VC firms like Sequoia Capital, Founders Fund, Union Square Ventures, CapitalG, General Catalyst, and Bond Capital, have also been active in the space. Venture funding in prediction market, Source: Predicted: The State of Prediction Markets 2025, Sporting Crypto, Nov 2025 Blockchain poised to boost the sector The prediction market had a total addressable market (TAM) of US$1.4 billion in 2024. This figure is projected to grow to over US$95 billion by 2035, driven by regulatory clarity, institutional participation, the expansion into new sectors, and the adoption of blockchain technology. Permissionless access can help aggregate liquidity across crypto speculators, casual traders, institutional speculators, and professional forecasters, helping them participate simultaneously in the same markets. Smart contracts automate settlement and eliminate intermediaries across the full spectrum of market participants, improving efficiencies, and enabling instantaneous price discovery that reflects real-time shifts in collective probabilities. Onchain prediction markets also support yield-generating products tied to long-term positions such as election outcomes or sports season results. Meanwhile, smart contracts and oracles enable automated, verifiable settlement. Oracles can verify event outcomes onchain, enabling automatic payouts without manual intervention. Prediction markets can also provide real-time probability data that artificial intelligence (AI) models can use to improve forecasts and decision-making. By tapping into decentralized, crowd-sourced insights, Al systems can gain more adaptive and accurate signals beyond traditional data. Emerging sectors The Sporting Crypto report notes that while politics and sports contracts continue to lead prediction market volumes, several emerging sectors are gaining traction. Enterprise forecasting, weather, and entertainment talent, in particular, are projected to reach TAMs of US$110.5 billion, US$10 billion, and US$7.8 billion, respectively, by 2030, with compound annual growth rates (CAGR) of 14.9%, 14.9%, and 14.3%. Where prediction markets could be going next, Source: Predicted: The State of Prediction Markets 2025, Sporting Crypto, Nov 2025   Featured image: Edited by Fintech News Switzerland, based on image by wahyu_t via Freepik The post Prediction Markets Set to Surge, Fueled by Clearer Regulations, Sector Expansion, and Blockchain Integration appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Ahead of next week’s UK Budget, the government has outlined a series of measures aimed at supporting investment, job creation, and economic growth across the country as part of its Modern Industrial Strategy. Over the past month, international and domestic companies have committed £24.25 billion in private investment, including major projects from firms such as Vantage Data Centers and Microsoft. A new AI Growth Zone will be established in South Wales, supported by £10 billion of private investment and expected to create at least 5,000 jobs, including at sites such as the former Ford Bridgend Engine Plant. Each AI Growth Zone will receive up to £5 million in government funding to support business adoption of AI and invest in local skills. The South Wales zone will span several sites along the M4 corridor and has the potential to harness more than 1GW of capacity by the early 2030s. Companies, including Vantage Data Centers, will work with regional universities to support skills development. To strengthen the UK’s position in AI research and industry, the government will introduce an “advance market commitment” to act as a first customer for UK start-ups developing AI hardware. Up to £100 million will be available to support early-stage companies. The government is also launching the process to allocate up to £250 million in free compute for British researchers and start-ups. A new Sovereign AI Unit, chaired by venture capitalist James Wise, will be backed by almost £500 million to help high-potential UK AI start-ups and scale-ups access capital and support. Additional AI ambassadors have been appointed to promote adoption and innovation, including economist Simon Johnson, Monzo co-founder Tom Blomfield, and Google DeepMind VP of Research Raia Hadsell. A strategy to accelerate scientific discovery through AI is also being introduced, supported by up to £137 million in government funding. Its first mission will focus on using AI to speed up the development of new drugs and treatments. Secretary of State for Science, Innovation and Technology Liz Kendall said: Liz Kendall “We are ambitious for our country and believe Britain’s best days lie ahead. The backing by international investors today is a vote of confidence in the UK, and we’re determined to do even more to ensure we are backing British businesses, workers and researchers to benefit from the opportunities AI brings.” NVIDIA and other technology firms have confirmed ongoing collaborations and investment to help build the UK’s AI capabilities and support its position in the global sector.     Featured image credit: Edited by Fintech News Switzerland, based on image by mohammadhridoy12 and SuYuk via Freepik The post UK Launches £10B AI Growth Zone in South Wales appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The Governing Council of the European Central Bank (ECB) has agreed to advance ongoing work to interlink the Eurosystem’s TARGET Instant Payment Settlement (TIPS) service with fast payment systems worldwide. This forms part of the Eurosystem’s broader efforts to facilitate more efficient cross-border payments for businesses and consumers in Europe, including remittances. The decision follows positive findings from exploratory work launched in October 2024 to assess connections between TIPS and India’s Unified Payments Infrastructure (UPI), as well as Nexus Global Payments. The Governing Council has now agreed to begin the realisation phase for interlinking TIPS with UPI, while completing the necessary legal arrangements and technical implementation in parallel. It will also continue examining the feasibility of a potential connection to Nexus Global Payments, alongside the required legal steps and agreements. In September 2025, the Governing Council also initiated work to evaluate the feasibility of linking TIPS with the Swiss Interbank Clearing Instant Payments system. Interlinking TIPS with other fast payment systems supports the Eurosystem’s retail payments strategy and contributes to the G20 roadmap aimed at making cross-border payments faster, cheaper, and more transparent and inclusive. It also aligns with efforts to strengthen the international role of the euro. Over the longer term, the Eurosystem aims to extend this work to additional currency corridors.     Featured image credit: Edited by Fintech News Switzerland, based on image by EyeEm via Freepik The post ECB Moves Ahead with Global Links for Europe’s Instant Payment System appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Invesco, a global asset manager, has been appointed as Zopa’s preferred asset manager partner as the UK digital bank expands into the investment market. The partnership aims to support first-time investors in deploying their cash and planning for their financial future. Through the collaboration, Zopa customers will gain access to Invesco’s investment expertise alongside Zopa’s customer-focused platform. At launch, two of Invesco’s multi-asset summit responsible funds will be made available to Zopa customers, with wider access planned for 2026, using Upvest’s API infrastructure. Oliver Bilal, Head of EMEA Distribution at Invesco, said: Oliver Bilal “As digital platforms reshape how people engage with their finances, we see tremendous opportunity to make investing simpler and more accessible. By combining Zopa’s customer-first approach with Invesco’s global investment expertise, we aim to break down barriers and empower individuals to build long-term financial resilience.” Merve Ferrero, Chief Strategy Officer at Zopa Bank, said: Merve Ferrero “Bringing Investments and Stocks & Shares ISA accounts alongside savings and cash ISAs under one roof gives our customers more financial control, all within a simple, education-led platform.”     Featured image credit: Edited by Fintech News Switzerland, based on image by ariyenrahul806 via Freepik The post Zopa Partners Invesco to Bring Investment Services to First-Time Investors appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Deblock, a French-based fintech focused on on-chain financial infrastructure, has closed a €30 million Series A funding round. The round was led by Speedinvest, with participation from CommerzVentures and Latitude, alongside existing investors Shapers, Headline, Chalfen Ventures, and Triton Capital (formerly Kraken Ventures). The funding will support Deblock’s expansion across Europe and the acceleration of its product development. The company aims to address inefficiencies in traditional banking, where lengthy procedures and extensive information requirements can limit users’ ability to manage funds quickly and transparently. Deblock plans to introduce new products in the coming months designed to provide users with greater control over their financial activities, building on its commitment to fully on-chain financial services.   Featured image credit: Deblock The post Deblock Raises €30 Million Series A to Expand Across Europe appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Liverpool FC has appointed PayPal as the club’s official digital payments partner under a new global, multi-year agreement. This marks PayPal’s first collaboration with a Premier League club. PayPal will become Liverpool FC’s preferred digital payment method. The service is already available across the club’s digital platforms and will be more prominently featured on checkout and payment screens across LFC’s e-commerce and All Red platforms. PayPal branding will also be visible at Anfield and St Helens Stadium during matches. The partnership will include the launch of PayPal+, the company’s new loyalty programme, enabling fans to earn rewards when making matchday purchases. Liverpool FC and PayPal will also collaborate on initiatives to raise the profile of Liverpool FC Women and support grassroots football through LFC Foundation. Ben Latty, Chief Commercial Officer at Liverpool FC, said: Ben Latty “PayPal is one of the most recognised and trusted names in digital payments and we’re delighted to welcome them to the LFC family. Their expertise in providing fast, secure and flexible transactions makes them the ideal partner to help us elevate the experience for supporters worldwide.” Geoff Seeley, Chief Marketing Officer at PayPal, added: Geoff Seeley “Our global collaboration with LFC reinforces our relationship with sports fans everywhere. We’re offering customers a seamless and flexible experience that rewards them for doing something they love, whether buying the new kit or grabbing a pint at the match. PayPal is the smarter way to pay for LFC and sports fans globally.”     Featured image credit: Edited by Fintech News Switzerland, based on image by lifeforstock via Freepik The post Liverpool FC Names PayPal as Official Digital Payments Partner appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Hedge funds around the world are increasing their exposure to cryptocurrencies, using a wide range of routes to invest in the asset class to diversify their holdings and capture gains, a new study by the Alternative Investment Management Association (AIMA) and PwC found. The study, released earlier this month, surveyed 122 institutional investors and hedge fund managers from across the globe in the first half of 2025, examining both traditional hedge funds that are investing less than half their assets under management (AUM) in digital assets, and crypto fund managers, which allocate more than 50% of their total AUM in crypto assets to gauge market sentiment. The study found that a growing number of traditional hedge funds are choosing to gain exposure to crypto assets. Over the past year, the share of these funds with exposure to the asset class rose eight points, increasing from 47% in 2024 to 55% this year. On average, they are allocating slightly more of their AUM to crypto at 7%, up from 6% the previous year. However, over half still commit less than 2%, reflecting a cautious approach as most funds are still building familiarity and confidence in the asset class. Traditional hedge funds invested, by crypto AUM (2025), Source: 7th Annual Global Crypto Hedge Fund Report, Alternative Investment Management Association (AIMA) and PwC, Nov 2025 Exposure to crypto assets is expected to continue increasing. Among the traditional hedge funds surveyed, 71% are planning to increase their exposure over the next 12 months. Diversification was cited as the primary motivation for 47% of managers, followed by market-neutral alpha (27%) as they seek generate return independently of overall market movements, and asymmetric returns (13%), a strategy which aims to capture more upside than downside. Favorable regulations drive crypto adoption This bullishness towards cryptocurrencies among hedge funds is being driven by favorable regulations in the US. Among traditional hedge funds with crypto exposure, 57% reported greater willingness to invest, 29% cited rising investor interest, 14% noted easier access to banking and another 14% are now expanding US operations amid clearer regulations. Over the past year, 79% have increased allocations, and 71% expect to grow exposure further in the next 12 months. Crypto-focused fund managers share a similarly positive outlook. 24% see clearer regulatory guidance spurring greater investment, 22% are scaling their US operations, and 16% are benefiting from improved banking access. Like traditional funds, most also increased their crypto exposure (54%) over the past year, with 56% planning to expand it further in the coming year. Traditional hedge funds invested and crypto hedge funds, by strategic impact of evolving US regulatory environment (2025), Source: 7th Annual Global Crypto Hedge Fund Report, Alternative Investment Management Association (AIMA) and PwC, Nov 2025 Derivatives, spot and ETFs as the preferred crypto instruments Among traditional hedge funds, crypto derivatives are the dominant trading instruments, used by 67% of respondents. The figure marks a 9 point increase from 58% in 2024. Crypto derivatives allow managers to take positions on future price movements without holding the underlying assets, and are most popular during period of heightened market volatility. Ranking second is spot crypto trading, which also grew, rising from 25% in 2024 to 40% in 2025. Spot trading involves buying and selling digital assets at their current market prices. It allows for direct ownership, enabling investors to use their holdings as collateral or for yield generation within decentralized lending pools. ETFs and exchange-traded products (ETPs) rank third, with 33% of traditional hedge funds gaining exposure to crypto through these instruments. The figure marks a 8 points increase from 25% in 2024. Spot crypto ETFs were first introduced in the US in early 2024. These funds invest in cryptocurrencies like bitcoin or ether, allowing investors to gain exposure without the need for direct ownership or technical expertise. They trade on traditional exchanges like the New York Stock Exchange (NYSE), making them widely accessible. Currently, more than 20 ETFs are available in the US, holding mostly bitcoin, ether, or a combination of both. The first spot XRP ETF started trading on the Nasdaq last week with more crypto ETFs expected in the coming months. Traditional hedge funds invested, by approach to getting exposure (2025), Source: 7th Annual Global Crypto Hedge Fund Report, Alternative Investment Management Association (AIMA) and PwC, Nov 2025 Stablecoins, decentralized finance as emerging trends The AIMA and PwC also delves into rising trends, highlighting stablecoins as an instrument gaining traction amid improving regulation. These cryptocurrencies are designed to maintain price stability, usually by being pegged to an underlying asset like the US dollar. In the US, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act was signed into law on July 18, marking the US’s first major national cryptocurrency legislation. The bill aims to regulate the stablecoin market, creating a clearer framework for banks, companies and other entities to issue digital currencies. Total issuance of stablecoins has risen by approximately 50% since the beginning of the year, soaring from US$200 billion to over US$300 billion by the end of November. Decentralized finance (DeFi) is another emerging era of interest among hedge funds. DeFi refers to financial services being delivered through smart contracts on a programmable, permissionless blockchain. These services are designed to remove third parties and centralized institutions from financial transactions. 43% of the traditional hedge funds with some exposure to digital assets polled by AIMA and PwC plan to expand into DeFi over the next three years, notably through tokenized funds and assets and the use of DeFi platforms. Barriers to investment Despite rising adoption and a more supportive regulatory environment, many hedge funds remain hesitant. For the 45% of traditional hedge funds with no current crypto exposure, half have no plans to invest in the next three years, 43% remain undecided, and 7% intend to enter the crypto markets within 12 months. These players cited investment mandate restrictions (43%), regulatory and tax uncertainty (29%) and reputational risk concerns (14%) as their principal barriers to investors. Internal culture is another key factor, with 50% citing internal skepticism toward crypto. If these barriers were removed, 14% would invest, and 43% would become more open to considering it. Traditional hedge funds not invested, Source: 7th Annual Global Crypto Hedge Fund Report, Alternative Investment Management Association (AIMA) and PwC, Nov 2025 Crypto hedge funds among fastest-growing segments Crypto hedge funds are among the fastest-growing segments of the hedge fund industry. Average AUM for these funds have reached US$132 million this year, up from US$79 million in 2024 and US$41 million in 2023, reflecting the broader market appetite. Most crypto hedge funds (91%) manage under US$1 billion, and primarily hold bitcoin (86%), ether (80%), solana (73%), and XRP (37%). They mainly use spot crypto trading (69%) and crypto derivatives (67%). Yield or reward generation is a priority for 73% of surveyed crypto fund managers, primarily through custodial staking (39%) and liquid staking (35%).   Featured image: Edited by Fintech News Switzerland, based on image by thanyakij-12 via Freepik The post Hedge Funds Increase Exposure to Crypto, Fueled by Clearer Regulatory Environment appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Following the end of the zero interest-rate policy (ZIRP) phase, the US fintech industry has entered a “leaner era” characterized by investor focus on profitability and efficiency. In this era, growth is being increasingly driven by financial infrastructure, particularly embedded finance and digital assets, according to a new report by Silicon Valley Bank (SVB). The October 2025 edition of the Future of Fintech edition looks at the state of the fintech industry in the US, delving into funding and development trends. During the ZIRP era, which ran from 2020 to mid-2022, cheap capital financed capital-heavy lending models. This period has ended, giving way to a more disciplined phase centered on sustainable growth. This change is evident in funding data. In 2022, at the peak of fintech, the sector represented over 20% of US venture capital (VC) investment. The space now accounts for less than 10% of VC dollars. Fintech fundraising, Source: The Future of Fintech 2025, Silicon Valley Bank, Oct 2025 The trend is also reflected in a global shift from early-stage funding toward larger rounds for established venture with strong financial performance. According to CB Insights, mid- and late-stage fintech deals reached a four-year high in 2025, accounting for 22% of all fintech transactions in the first three quarters of the year. In contrast, early-stage deals have declined to 66% of total activity, marking a five-year low. Share of mid- and late-stage deals in global fintech, Source: State of Fintech Q3 2024, CB Insights and Money20/20, Oct 2025 Embedded finance takes center stage In this era, embedded payments and digital assets have become the key drivers of fintech growth, with finance being now directly embedded into software-as-a-service (SaaS). Embedded payments, in particular, is now widespread, with more than half of relevant independent software vendors offering embedded payments in North America in 2025, according to Boston Consulting Group (BCG). In parallel, many small and medium-sized enterprises (SMEs) are now accustomed to using payments integrated directly into their SaaS platforms. SME adoption of vertical software reached 59% in the US in 2024, compared with 50% just two years earlier. BCG estimates that in North America and Europe, the total addressable market (TAM) for embedded finance is about US$185 billion across four core products, namely payments, capital solutions, accounts, and card issuing. However, current penetration stands at around US$32 billion, leaving significant room for growth. The total addressable market for embedded finance is US$185 billion, with significant opportunity for growth, Source: Boston Consulting Group, Sep 2025 Digital assets reach mainstream adoption Digital assets are another key vertical in the current fintech era, with crypto-focused companies dominating key VC metrics. The median early-stage pre-money valuation for crypto firms now stands at US$45 million, surpassing financial business process software (US$32 million), banking and capital markets (US$31 million), and payments (US$27 million). Crypto’s median valuations are now roughly three times higher than those in alternative lending. Median early-stage pre-money valuation by fintech subsector, Source: The Future of Fintech 2025, Silicon Valley Bank, Oct 2025 In parallel, crypto-focused funds are dominating fintech investing. Funds with a crypto mandate account for two-thirds of all fintech funds. The top quartile internal rate of return (IRR) of these funds stands at 30%, compared with 22% across all VC funds. Crypto funds in the US, Source: The Future of Fintech 2025, Silicon Valley Bank, Oct 2025 The crypto market has reached mainstream maturity, establishing itself as a global store of value on par with conventional global assets. The total cryptocurrency market capitalization has surpassed US$4 trillion, rivaling the world’s most valuable company, NVIDIA, and becoming one-sixth the size of the global gold market. Market capitalization for select global assets, Source: The Future of Fintech 2025, Silicon Valley Bank, Oct 2025 As crypto adoption grows, blockchain’s core utility is driving momentum in stablecoins. These digital assets are pegged to fiat currencies and backed by reserves, bridging the gap between fintech and traditional finance. Institutional players are now exploring stablecoins at scale. JPMorgan is piloting a blockchain settlement system, while retail giants Walmart and Amazon are evaluating stablecoins as alternatives to legacy payment rails like ACH. Market capitalization of top stablecoins, Source: The Future of Fintech 2025, Silicon Valley Bank, Oct 2025 Slower revenue growth but higher investor expectations Another key trend highlighted by SVB is the widening gap between fintech growth rates and investor expectations. For fintech companies, growth has become harder to come by, and yet investors are demanding stronger revenue performance than ever before. Between late 2021 and the end of 2023, revenue growth rates have fallen by over half for fintech companies. Currently, only half of companies with over US$25 million in revenue are growing 25% per year. That’s down from 83% at the end of 2021. While companies are growing slower, investors are expecting more in terms of absolute revenue. Companies raising a Series A round needed just US$1 million in revenue in 2020-2021. Today, that benchmark has quadrupled to roughly US$4 million. Similar trends have also played out at Series B and Series C. Revenue distribution for US VC-backed fintech companies at the time of raise, Source: The Future of Fintech 2025, Silicon Valley Bank, Oct 2025   Featured image: Edited by Fintech News Switzerland, based on image by user5604845 via Freepik The post The Future of Fintech: Top Trends According to SVB appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

CV VC, together with the Frankfurt School Blockchain Center, has released the German Blockchain Report 2025, analysing venture capital activity in Germany’s blockchain sector from Q3 2024 to Q2 2025. While overall German venture funding rose, blockchain-specific investment declined, representing the lowest share of national venture activity in four years. Globally, venture funding reached US$411.9 billion across 21,872 deals, up 19.5% year-on-year, although deal counts fell 14.2%. North America accounted for 63.1% of global funding. Europe raised US$59.9 billion across 5,708 deals, down 8.7% in funding and 20.9% in deal volume, with a median deal size of US$2.5 million, below the global median. Germany attracted US$9.3 billion across 522 deals. Funding was up 10.4% but deal numbers fell 14.6%, with a median deal size of US$4.9 million and an average of US$17.8 million. Blockchain investment declined overall, with Berlin remaining the main hub, early-stage ventures gaining attention, and data management, verification, and analytics leading sector activity. A US$10 million stablecoin infrastructure round signalled cautious confidence in protocol-level projects, while centralised blockchain financial services contracted and gaming, NFTs, and the metaverse remained steady. The report notes that the Markets in Crypto-Assets Regulation (MiCAR) has clarified rules at the European level but created friction in Germany due to banking law differences. Smaller funding rounds and heavier compliance obligations are affecting early-stage teams. Germany continues to have strong entrepreneurial talent and institutional engagement, but the report highlights that regulatory and funding challenges could limit the country’s role as a blockchain hub.   Featured image credit: Edited by Fintech News Switzerland, based on image by thanyakij-12 via Freepik The post German Blockchain Funding Falls to Four-Year Low Despite $9.3B Venture Growth appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Broadridge has announced that Societe Generale has completed its first digital bond issuance in the US using Broadridge’s tokenisation capability. The bonds were issued by Societe Generale-FORGE, the bank’s subsidiary focused on digital assets. The transaction demonstrates how institutions can use tokenisation and permissioned blockchain technology to enable instant settlement and greater transparency while remaining compliant with traditional capital markets practices. Broadridge’s tokenisation capability allows firms to issue, trade, and manage securities in digital form, with features such as privacy controls, credential management, and direct investor ownership. For this transaction, Broadridge and Societe Generale-FORGE used IntellectEU’s Catalyst Blockchain Manager to operate their nodes on the Canton Network. Horacio Barakat “Broadridge is uniquely positioned to lead the tokenisation of corporate and structured bonds, given its proven track record of leveraging blockchain technology and delivering innovative solutions for our clients,” said Horacio Barakat, Head of Digital Innovation at Broadridge. “The expansion of tokenisation beyond treasuries into corporate and structured bonds is an exciting step, one that will help increase the liquidity and utility of these assets across financing and collateral use cases.” This capability complements the Broadridge Distributed Ledger Repo (DLR) platform, which processed an average of US$385 billion in daily repo transactions in October. DLR is designed to settle tokenised real assets and is interoperable with both traditional and blockchain-based market infrastructure, supporting collateral management and liquidity efficiency.   Featured image credit: Societe Generale The post Societe Generale Completes First US Digital Bond Using Broadridge Tokenisation appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Mercuryo, Polygon Labs and Mastercard are collaborating to expand Mastercard Crypto Credential to include self-custody wallets. The solution provides simple aliases to replace complex blockchain addresses, aiming to improve inclusivity, security and scalability while supporting trust and standardised verification for users. Polygon Labs will provide the blockchain infrastructure as the first native network to support the solution, while Mercuryo will handle user onboarding. Mastercard’s verification framework underpins the programme, enabling alias-based crypto transfers with faster, lower-cost transactions suitable for digital payments and asset transfers. Mercuryo will onboard users and provide them with an alias after completing know-your-customer (KYC) verification. Once verified, users can link their wallets to their Mastercard Crypto Credential username and may request a Soul Bound Token on the Polygon blockchain. This token signals on-chain that the wallet supports transaction processing, including Travel Rule compliance and verification checks to confirm ownership by a verified user. Users will then be able to receive crypto using their alias and send it in the future, simplifying transfers while maintaining self-custody. Raj Dhamodharan “By streamlining wallet addresses and adding meaningful verification, Mastercard Crypto Credential is building trust in digital token transfers,” said Raj Dhamodharan, Executive Vice President, Blockchain & Digital Assets at Mastercard. “Bringing Mercuryo and Polygon’s specialised expertise together with our infrastructure is making digital assets more accessible and reinforces Mastercard’s commitment to driving secure, intuitive, and scalable blockchain experiences for millions of users globally.” Petr Kozyakov, Co-Founder and CEO of Mercuryo, said, Petr Kozyakov “This collaboration will further the path to mass adoption, providing a simplified and streamlined means of sending and receiving digital tokens while users maintain self-custody of their digital assets.”   Featured image credit: Edited by Fintech News Switzerland, based on image by thanyakij-12 via Freepik The post Mastercard Expands Crypto Credential to Self-Custody Wallets appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

HSBC is reportedly preparing to expand its tokenised deposits services. The global bank already offers the service in Hong Kong, Singapore, the UK and Luxembourg, and now plans to extend it to corporate clients in the US and the UAE beginning next year, Bloomberg reported. HSBC’s Tokenised Deposit Service enables clients to send money locally and across borders within seconds and at any time, according to Manish Kohli, HSBC’s Global Head of Payments Solutions. Manish Kohli “The topic of tokenisation, stablecoins, digital money and digital currencies has obviously gathered so much momentum. We are making big bets in this space,” Kohli said. The report adds that HSBC currently processes transactions in euros, pounds, US dollars, Hong Kong dollars and Singapore dollars, and will add UAE dirhams next year as it expands into the Middle East. The launch is scheduled for the first half of 2026. As Bloomberg noted, HSBC’s move comes as many other banks explore how digital assets can speed up and streamline payments. It also follows the introduction of the GENIUS Act in the United States, which establishes new rules for stablecoins, a rapidly growing category of digital money.   Featured image credit: Edited by Fintech News Switzerland, based on image by suwant via Freepik The post HSBC to Expand Tokenised Deposit Services to the US and UAE appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Revolut has announced a global payments partnership with online travel platform Booking.com. Through the partnership, Booking.com customers can now pay via Revolut Pay, Revolut’s one-click checkout solution, with support for multiple currencies. Approximately 9 million Revolut customers have previously used Booking.com, making the collaboration a natural fit. Revolut Pay currently has nearly 2 million monthly active users. The system allows customers to complete bookings in a single click through the Revolut app, with biometric security features applied. Customers using Revolut Pay also earn RevPoints, Revolut’s pan-European debit loyalty programme, which can be redeemed across multiple merchants, including Booking.com, or exchanged for rewards such as airline miles, stays, and gift cards. From 17 November to 3 January, users can earn 10x RevPoints on purchases. Alex Codina, General Manager of Acquiring at Revolut, said: Alex Codina “Our strategy at Revolut is about meeting customers where they are. Given our customers’ passion for travel and the millions of users on Booking.com, this partnership is a natural fit. Integrating Revolut Pay means a faster, more secure, and ultimately more rewarding checkout experience for users.” JC Rodriguez, Senior Director of Commercial Fintech at Booking.com, added: JC Rodriguez “Introducing innovative solutions to make transacting on our platform fast, secure and flexible for all customers is key to that goal. With Revolut’s strong growth in key European markets, this partnership was a natural fit.”   Featured image credit: Edited by Fintech News Switzerland, based on image by freepik The post Revolut Partners with Booking.com to Offer One-Click Payments appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Crypto exchange Kraken has secured US$800 million in fresh funding to accelerate its plan to bring traditional financial products on-chain. The round includes a US$200 million strategic investment from Citadel Securities at a US$20 billion valuation. Arjun Sethi “This investment represents long-term conviction in Kraken’s mission to build trusted, regulated infrastructure for the open financial system. Our focus has always been straightforward: to create a platform where anyone can trade any asset, anytime, anywhere. The caliber of our new investors reflects both the scale of the opportunity ahead and the depth of alignment around how this infrastructure should be built.” said Arjun Sethi, Co-CEO at Kraken. The primary tranche was backed by Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management and Tribe Capital, along with a significant commitment from Sethi’s family office. Founded in 2011, Kraken operates a globally scaled and regulated infrastructure stack that supports spot trading, derivatives, equities, tokenised assets, staking and payments. Its vertically integrated architecture covers exchange matching, custody, clearing, settlement, market data and wallet services, which the company said enables rapid deployment of new asset classes while maintaining regulatory and security standards. Kraken reported US$1.5 billion in revenue in 2024 and said it surpassed that figure within the first three quarters of 2025. It added that it has maintained sustained profitability and had raised only US$27 million in primary capital before this round. The company has expanded its product range in recent months by integrating U.S. futures trading through the NinjaTrader acquisition, launching equities and tokenised equity trading and rolling out KRAK, a global app for payments, savings and investing. Citadel Securities President Jim Esposito said the firm will support Kraken’s next phase of growth. Kraken said the partnership will include differentiated liquidity provision, risk management support and market structure insights. The new funding will be used to scale operations, strengthen its regulated footprint and expand its product suite through organic growth and targeted acquisitions. Kraken plans to enter new markets in Latin America, Asia Pacific and EMEA, while adding more asset classes, advanced trading tools, staking solutions, expanded payment services and enhanced institutional features.     This article first appeared on Fintech News Singapore. Featured image: Edited by Fintech News Switzerland, based on image by ilygraphic via Freepik The post Kraken Hits US$20 Billion Valuation After Raising US$800 Million appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Vyntra, a Yverdon-based provider of transaction intelligence, has launched Payment App Protection, a solution designed to detect and prevent money mule activity and payment fraud in real time. The move comes as mobile payment applications increasingly become a channel for scams, fake listings, account takeovers, and social engineering attacks. The system analyses customer data, transaction behaviour, and network risk scores to identify fraudulent activity before funds are released. It allows pre-authorisation checks and can block suspicious payees, merchants, and accounts involved in laundering schemes, while leaving control with the bank or payment provider. The growth of secondhand marketplaces and instant money transfers has introduced new vulnerabilities for financial institutions and consumers. Limited regulatory oversight and weaker protections have made mobile payment apps a frequent target for criminals. Payment App Protection provides real-time visibility into risky transaction patterns and includes a Community Scoring & Intelligence feature, enabling banks to share and benefit from fraud detections across the financial network. Yoann Vandendriessche, Chief Product Officer, said: Yoann Vandendriessche “Payment apps have become one of the fastest growing channels for financial crime and with Payment App Protection, we can help banks and payment providers to act instantly against emerging fraud threats, allowing them to share intelligence securely and deliver safer and more trusted digital experiences to their customers.” Vyntra, formed from the merger of NetGuardians and Intix, serves over 130 financial institutions in more than 60 countries, providing tools for fraud detection, anti-money laundering compliance, and real-time transaction monitoring.   Featured image credit: Edited by Fintech News Switzerland, based on image by DC Studio via Freepik The post Vyntra Launches Real-Time Fraud Detection for Mobile Payments appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.