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Forbes
3 days ago
- Business
- Forbes
Stablecoin Policy's Web Is Full Of Characters
There has been a web of intrigue playing out in the stablecoin policy sphere. The Senate Guiding and Establishing National Innovation for U.S. Stablecoins Act is back on track. Debate will continue when Congress returns from recess next week, and a vote is likely to follow posthaste. Just as the policy process has been dramatic, the stablecoin advocacy ecosystem has been full of theatrics. Agencies, banks, crypto companies, public institutions are among the cast of characters in the stablecoin mesh. A stablecoin, a digital dollar, is an instrument whose time has come. Previous proposals were far less innovative. For decades, plans to leverage the post office to provide access to bank services to the underserved floated across progressive circles in Washington. More recently, the 2023 launch of FedNow, an instant payments system built by the Federal Reserve, did not live up to expectations. The urgency to fill this gap has been mounting for a long time. Perhaps it was the obstacles the federal government faced as they tried to deliver stimulus checks to the most vulnerable during COVID that solidified stablecoins as a viable solution. Stablecoins do not represent a total disruption. The revenue model is essentially the same as traditional financial institutions. Companies invest their reserves and subsequently profit from the gains. Is that synergy a good thing? It depends on who you ask. The legacy banking system is entrenched and tensions are high in some corners. Independent Community Bankers of America President and CEO Rebeca Romero Rainey said this in a statement before the latest GENIUS Act vote. "ICBA urges the Senate to ensure the GENIUS Act provides regulatory clarity while including necessary guardrails to protect against the negative economic consequences that would result from community bank disintermediation. ICBA reiterates our concerns outlined for the Congress since the beginning of this debate. With community banks using deposits to make 60% of the nation's small-business loans and 80% of banking industry agricultural lending, mitigating the risk of retail deposits migrating out of community banks — which have proven commitments to their communities and local credit creation — is critical.' Big banks, however, want a piece of the pie. JPMorgan Chase, Bank of America, Citi, Wells Fargo, and others are exploring the possibility of creating a unified stablecoin according to news reports. There's also web spinning in the crypto native industry. After rumors spread recently that Coinbase and Ripple were vying to acquire Circle, the largest stablecoin company in the United States just squashed speculation by announcing their IPO will go live next week on June 4. Oversight of this messy web will rest in the purview of the Office of the Comptroller of the Currency. 'I'm also focused on expanding responsible bank activities involving digital assets to support the 50 million Americans who now hold some form of cryptocurrency. Regulated banks must keep up with this transformation,' Acting Comptroller Rodney E. Hood recently said in a speech this month. New OCC guidance states that 'crypto-asset custody, certain stablecoin activities, and participation in independent node verification networks such as distributed ledger are permissible for national banks and federal savings associations.' The stage is set for centralized and decentralized finance to fuel the sector. But will frictions fester? The stablecoin policy web is just commencing and will likely get more complex after legislation is signed into law.
Yahoo
14-05-2025
- Business
- Yahoo
Nevada bill would charter new payment banks
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. A bill in the Nevada Assembly would offer a special charter for new payment banks, aiming to allow financial technology companies and others to access federal payment rails and help merchants bypass many of the expenses associated with traditional card payments. The new licensing system would allow retailers, payment processors, remittance companies and others to apply as banks for direct access to U.S. payment systems like ACH, FedWire and FedNow. As a result, Nevada retailers – and potentially consumers – would benefit from lower transaction costs for credit and debit cards, say supporters of the proposal. Card payments carry interchange fees that U.S. merchants have decried for years as both excessive and onerous. The goal would be to eliminate the 'middlemen' that add costs and delays to payment settlements, its sponsor, Assembly Speaker Steve Yeager, a Democrat, said last month at a committee hearing on the bill. The Retail Association of Nevada, which represents about 2,000 mostly small retailers, is lobbying heavily for the proposal in Carson City, said Bryan Wachter, a senior vice president at the retail association. The bill would allow Nevada to become 'the first state in the nation to offer a charter built for the digital economy,' Yeager said. The bill would prohibit the new payment banks from lending and 'lending-related' activities and impose a 0.0025% fee per transaction on merchant-acquiring activity. Merchants have had little choice but to use 'the monopolies' that govern payment rails and the bill is an effort to empower new types of banks to offer lower-cost transactions, said Wachter, who testified with Yeager at the April hearing. Payment banks would not be required to be insured by the Federal Deposit Insurance Corp. Regulators at the Nevada Financial Institutions Division would determine whether companies have sufficient protections on funds to grant a license, Wachter told the committee. Smaller businesses 'have had no choice but to go through layers of intermediaries just to process everyday transactions,' Yeager told his colleagues on the Assembly Committee on Commerce and Labor. The legislation would put Nevada 'at the cutting edge of financial innovation,' and create new financial jobs and a steady revenue stream for the state, he said. Supporters are confident they have sufficient support to pass the bill before Nevada's legislative session ends June 2, Wachter said Wednesday in an interview. If passed, 'I do think that there might be a payments processing company, an internet company, some other companies that exist in this space that comes in and says we can create a better product,' he said. The Nevada Bankers Association was concerned that the new banks could increase state assessments on its banking members to fund new regulators and oversight, Connor Cain, with the NBA's lobbying firm, Carrara Nevada, told lawmakers at the same hearing. The banks are 'encouraged' by dialogue on an amendment to the bill to ensure that current Nevada banks do not bear new financial costs to implement the legislation, Cain said. The Electronic Transactions Association, which counts banks among its members, has not taken a position on the bill, a spokesman said Tuesday. Other states have previously enacted special banking charters, including Connecticut, Georgia and Wyoming, although the Nevada legislation, if it passes, would make the state the first to license and regulate payment banks without the FDIC insurance requirement, Wachter said. In recent years, Connecticut has revived its 1990s-era uninsured bank charter, created to allow companies to offer some financial services without taking deposits, as a way to lure startup fintechs to the state. In March, Stripe applied with Georgia regulators for a merchant acquirer limited purpose banking charter so it could access card networks directly, without a bank partner. Last year, Georgia granted payment processor Fiserv a bank charter. Smaller merchants in Nevada typically pay fees of 2% to 3% per transaction, which cost about 0.25% for traditional acquiring banks to facilitate, Wachter told the committee. The narrower scope of a payment bank – without lending and other full-service bank offerings – would mean lower operating costs for a license holder and less overhead to fund via its charges to merchants, Wachter said. 'Because you aren't having to be a full-fledged, full-service bank, we're hoping that it will actually be cheaper to operate those licenses and that cost savings would then also be passed along to those merchants,' he said at the hearing. At a typical supermarket, banks and card issuers enjoy higher profit margins on a card payment than the grocer selling the shopper a cart full of food, Wachter said, offering legislators an example of how the bill could help retailers and consumers. With new payment tools, many merchants would ultimately be able to avoid including their payment expenses in the price of the goods they sell, Wachter said. The legislation would allow Nevada to emulate payment-processing systems common in Europe, where payment specialists have lowered transaction costs for businesses and consumers, Paul Dwyer, co-founder and CEO of money transmitter Viamericas, told the committee. Routing consumer transactions via full-service banks to access payment rails 'is a fount of inefficiency,' he said. Recommended Reading Swipe fee foes find legislative support in almost a dozen states Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Walmart drives toward instant payments
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Walmart, the biggest U.S. retail chain, is increasingly eager to offer its customers instant payment options as it seeks to speed up services and keep costs low. The Bentonville, Arkansas-based retailer has also long been intent on finding ways to avoid interchange fees incurred every time a customer uses a credit or debit card. Last September, Walmart said it would begin offering customers a pay-by-bank option to avoid those fees, ultimately with a real-time option. While the retailer said last year that the instant option might be available this year, it could take longer, based on comments from a Walmart executive this week at Nacha's Smarter Faster Payments conference in New Orleans. 'We're really bullish on instant payments and hoping to move forward with them within the next year,' Sarah Arnio, Walmart's director of digital payments, said Wednesday during a panel discussion focused on real-time payments. Real-time payments have been around since 2017 thanks to The Clearing House starting the RTP network that year, but only some banks have adopted the new tool, and those that have signed up have had tepid uptake in the marketplace. The launch in 2023 of the Federal Reserve's competing instant system, FedNow, has boosted adoption by banks, but real world use remains limited. Walmart last year gave customers the option to sign up on its website to be able to pay directly from a bank account, moving those payments via low-cost, automated clearing house transfers, also known as ACH payments. But ACH is a 'stepping stone' to faster instant payments, Arnio told the payments, banking and fintech professionals attending the conference. 'We at Walmart really have a drive internally to speed up everything,' she said. Walmart is seeking to speed up checkout and processing of online orders, she explained. Recently, it also set a goal of delivering groceries to 95% of customers within three hours by the end of the year, she added. For now, though, real-time payment obstacles remain. For instance, RTP doesn't support e-commerce payments and while FedNow does, its process includes unwanted friction, Arnio said. 'We have the foundation to get there, but there's still kind of, obviously, a few roadblocks or hurdles that we have to overcome,' she said. Walmart isn't the only retailer embracing instant payments. 'The momentum is here – it's growing,' she said. 'We're definitely at a tipping point where this is only going to grow even further. While the lack of bank interest had been a hurdle in the past, she predicts retailers will plow through it. 'We're going down the path of instant payments, whether we have all the financial institutions or not,' she predicted. The big bank owners of The Clearing House have signed up for RTP, but their smaller rivals have been more reluctant. Although FedNow appeals more to community and regional banks, it still has onboarded only about 1,300 of the country's 9,100 financial institutions. Walmart customers, who tend to use debit cards over credit cards, are conscious of transparency with respect to their spending so real-time payments could be a positive for them, Arnio explained. 'They want visibility into their account,' she said. They also want to receive refunds fast. The most common customer call to the retailer's call centers is about when a refund is coming, Arnio said. 'Having that real time refund in their account, that is going to be a game-changer for these customers, and so I think that is going to drive a lot of adoption,' she said. In terms of Walmart's payments to suppliers or other businesses, real-time payments has been a bit of a tough sell when Arnio occasionally asks her treasury colleagues if they've considered using RTP or FedNow, she said. That's because they're more familiar with the low-cost ACH option, but also because bankers don't highlight the real-time alternative, she said. 'They're not hearing about it from their banking relationship partners,' Arnio said. 'It's just not something that's being pushed from the bank side, so that's where I think there's a bit of a disconnect.' Another panelist, Michael Thomas, who is U.S. Bank's head of instant payments, noted that some companies seem apprehensive about faster payments enabling faster fraud, but he contended that isn't the case so far. 'There's really low rates of fraud,' said Thomas, noting that is somewhat related to the limited use cases so far. 'We have a lot of education still to do.' More than fearing fraud, companies should fear missing out on the phenomenon, because real-time payments will become a competitive advantage, Thomas said. Eventually, they'll also be useful for cross-border transactions too, he added. But companies and banks have yet to make the investments in technology and processes that are needed to build the real-time payments realm. Specifically, financial institutions must sign up to send payments because many are equipped only to receive payments, said another panelist, U.S. Faster Payments Council Executive Director Reed Luhtanen. 'You have to be figuring out what's your pathway to get to send, because that's where you really unlock a lot of this value,' Luhtanen told the conference attendees. Recommended Reading FedNow draws 1,300 financial firms Sign in to access your portfolio
Indian Express
02-05-2025
- Business
- Indian Express
Top 10 largest banks in the world by market cap (2025): Indian bank in the global 10
Top 10 banks in the world in 2025: The global banking industry continues to hold a dominant presence worldwide, with institutions managing assets worth trillions of dollars. According to a report by Statista, the sector's net interest income is projected to rise to $8.94 trillion by 2025. However, the global financial market experienced significant volatility and fluctuations, largely influenced by growing concerns about a potential global recession and uncertainty surrounding US President Donald Trump 's extensive tariff policies. The United States of America-based JP Morgan Chase is the world's largest bank in terms of market capitalisation, and is also the largest bank in the US in terms of total assets. Meanwhile, India's HDFC Bank, following its merger with HDFC Ltd., has become the largest bank in India and the tenth-largest globally. As of May 2, 2025, it holds a market cap of $184.44 billion, edging close to Goldman Sachs, which trails at $172.12 billion, according to the latest data. While American banks continue to dominate the rankings, Chinese banks occupy four of the top ten spots, with the Industrial and Commercial Bank of China (ICBC) emerging as the largest in Asia. According to Forbes, ICBC held the third spot globally until March 2025. However, the latest figures from place ICBC in second place, surpassing Bank of America, with a market cap of $320.05 billion. Top 10 largest banks in the world by market cap (2025) Here's a table enlisting the world's top ten largest banks in 2025, ranked by their market caps Rank Bank Market Cap Headquaters 1. JPMorgan Chase $686.13 billion New York, USA 2. Industrial and Commercial Bank of China (ICBC) $320.05 billion Beijing, China 3. Bank of America $302.55 billion North Carolina, USA 4. Agricultural Bank of China $256.80 billion Beijing, China 5. Wells Fargo $233.68 billion California, USA 6. China Construction Bank (CCB) $216.53 billion Beijing, China 7. Bank of China $207.13 billion Beijing, China 8. HSBC $197.07 billion London, England 9. Morgan Stanley $187.63 billion New York, USA 10. HDFC Bank $184.44 billion Mumbai, India Note: Market capitalisation is dynamic and varies with the share price of a firm. It might change dramatically over time or even from day to day, with the aforementioned market capitalisation has been noted as of May 2, 2025. JPMorgan Chase JPMorgan Chase (Source: Reuters) JPMorgan Chase, the largest bank in the US, ranks as the fifth-largest globally by total assets. Renowned for its strong presence in investment banking and financial services, the bank is also one of the early adopters of the Federal Reserve's new real-time payment platform, known as the FedNow system. Industrial and Commercial Bank of China (ICBC) Industrial and Commercial Bank of China (ICBC) (Source: Shutterstock) The Industrial and Commercial Bank of China Limited (ICBC) holds the title of the largest bank not only in the People's Republic of China but also globally, when measured by total assets which amounts to $6.898 trillion. As one of the world's leading financial institutions, ICBC consistently ranks among the top global lenders, standing shoulder to shoulder with major players like Bank of America. Bank of America Bank of America (Source: @FearedBuck/X) Bank of America has a strong foothold in investment banking, wealth management, and trading, catering to over 68 million individual customers and more than three million small businesses. It ranks as the third-largest bank globally. With a market capitalisation of $302.55 billion, it is also among the most valuable companies worldwide, placing 30th on the global list. Agricultural Bank of China Agricultural Bank of China Founded in 1979, the Agricultural Bank of China ranks as the world's fourth-largest bank. According to its most recent financial reports, the bank has posted earnings of $43.41 billion. While it plays a key role in financing and developing China's agricultural industry, its operations also extend internationally, with a presence across the Asia-Pacific region, the Middle East, Europe, and the Americas. Wells Fargo Wells Fargo (Source: Reuters) Wells Fargo and Company, a major American financial institution, provides a wide range of services including mortgage lending, equipment leasing, insurance solutions, and more across approximately 35 countries. It is one of 34 banks and credit unions that have partnered with JPMorgan to adopt the FedNow instant payment system. With a customer base exceeding 70 million, Wells Fargo ranks among the top five largest banks in the US. China Construction Bank (CCB) China Construction Bank (CCB) China Construction Bank (CCB) plays a key role in supporting China's infrastructure and development initiatives. As one of the country's top commercial banks, CCB serves around 3.48 million corporate clients, making it the second-largest bank in China after ICBC. Through its subsidiaries, CCB maintains a broad presence across multiple sectors, including energy, retail, leisure, software, and more. Bank of China Bank of China (Source: WSJ) As one of China's most historic financial institutions, Bank of China has built a strong global footprint over the years. Originally launching its operations in Hong Kong, the bank now conducts its financial market activities through five key international hubs: Beijing, Shanghai, Hong Kong, New York, and London. A core mission of the Bank of China is to support the country's economic development by ensuring currency stability and fostering growth. HSBC HSBC (Source: Unsplash) Originally founded in Hong Kong and Shanghai, and now based in the United Kingdom, this British banking giant holds the position of the 8th largest bank globally. As a leading provider of banking and financial services, HSBC supports approximately 42 million customers across 62 countries. With a strong international presence, the bank also operates in India, offering a wide range of financial products and gradually expanding its personal banking customer base in the country. Morgan Stanley Morgan Stanley (Source: iStock) Morgan Stanley, a prominent American investment bank and financial services firm, is deepening its longstanding partnership with Mitsubishi UFJ Financial. After 15 years of collaboration, the two institutions have revealed plans to expand their alliance by entering new areas, including foreign exchange trading and Japanese equities and research, with the aim of serving a broader international clientele. HDFC Bank HDFC Bank (Source: Freepik) Following its merger with HDFC Ltd., a prominent housing finance company, HDFC Bank has emerged as the largest bank in India and the tenth largest globally. In terms of market capitalisation, it ranks as the second-most valuable company in India, currently valued at $187.65 billion. With a significant footprint in both retail and corporate banking, HDFC Bank provides an extensive array of financial products and services.
Associated Press
30-04-2025
- Business
- Associated Press
Cross River Expands Borderless Finance with Launch of International Payments Powered by Smart-Routing
FORT LEE, N.J.--(BUSINESS WIRE)--Apr 30, 2025-- Cross River Bank ('Cross River'), a technology infrastructure provider that offers embedded financial solutions, today announced the launch of its new International Payments solution, now processing transactions with Aion, a modern business finance platform designed to simplify financial management. Leveraging Cross River's proprietary banking core, API technology, and industry-leading compliance and AML/CFT integrations, this new International Payments solution offers seamless, efficient, and cost-effective cross-border transactions for businesses. With the demand for cross-border payments increasing, and the market forecasted to reach $320tn by 2032, the need for efficient and secure international payment systems is increasingly important. Cross River's International Payments platform is rail-agnostic, dynamically selecting the most relevant payment rails based on transaction size, currency, and corridor. This ensures businesses and consumers benefit from faster processing times so consumers receive their money when and where they need it. 'Our goal is to simplify cross-border payments by removing technical barriers that limit global scalability,' said Luca Cosentino, Head of Product at Cross River. 'Our International Payments capability uses a flexible, rail-agnostic approach to enable fast, cost-effective, and secure transfers—whether through SWIFT or local bank rails. This milestone not only marks a significant advancement in our infrastructure but also sets the stage for future real-time global payment solutions that help our partners deliver seamless international experiences.' Cross River's solution offers businesses a range of payment pathways—from SWIFT for secure, standardized cross-border transactions to local bank rails optimized for domestic B2B and B2C transfers. The capability initially enables cross-border payments for fintechs and SMBs, B2B and B2C transfers, funding operating accounts and subsidiary payments back to parent companies. An early adopter of Cross River's International Payments is Aion, a modern business finance platform designed to simplify financial management. Cross River and Aion have previously partnered to enable instant payments domestically via RTP ® and FedNow ®, as well as traditional methods such as ACH, same-day ACH and Wires. Cross River also provides business banking accounts through Aion, including a High-Yield Business Account *. Aion's commercial-grade all-in-one banking solution helps streamline business payments, now internationally with Cross River's solution. 'SMBs are the backbone of the global economy, yet they've long faced high costs and delays when paying international suppliers or remote teams,' said Satish Palvai, Founder and CEO at Aion. With Cross River's International Payments, we're leveling the playing field by giving growing businesses access to the same speed and efficiency once reserved only for large enterprises.' With strict adherence to regulatory standards, Cross River's International Payments platform integrates advanced anti-money laundering (AML) tools and compliance solutions. Fully routable subledgers and detailed customer records allow businesses to monitor transactions on a sub-entity level, ensuring security and reliability. This launch marks just the beginning of the Bank's commitment to powering borderless finance. Cross River will continue to invest in expanding supported use cases, countries, and currencies—enhancing the infrastructure to meet the evolving needs of fintech partners and enabling more businesses and consumers to move money globally with speed, security, and confidence. About Cross River Cross River provides technology infrastructure powering the future of financial services. Leveraging its proprietary real-time banking core, Cross River delivers innovative and scalable embedded payments, cards, and lending solutions to millions of consumers and businesses. Cross River is backed by leading investors and serves the world's most essential fintech and technology companies. Leading the industry, Cross River is reshaping global finance and financial inclusion. Member FDIC. Find out more at About Aion Aion is a modern business finance platform, designed to simplify financial management. The company's mission is to enable business owners and finance professionals to focus on building and growing their businesses, while AI-powered software handles the rest. The Aion's platform is founded on the principles of customer-centric exceptional design, simplicity, and transparency. Find out more at For press inquiries, please contact Christopher Basso at [email protected]. *Aion is a financial technology company, not a bank. Banking Services provided by Cross River Bank, Member FDIC. Aion accounts are FDIC insured up to $250,000 per depositor through Cross River Bank, Member FDIC. Banking Services for payments made via ACH or wire from the Aion Business Checking Account are provided by Cross River Bank, Member FDIC. The Aion Business Debit Visa® is issued by Cross River Bank, Member FDIC pursuant to a license from Visa, Inc., and may be used everywhere Visa is accepted. View source version on CONTACT: Media Contact: Mackenzie DeLuca [email protected] 201-808-7000 x 778 KEYWORD: UNITED STATES NORTH AMERICA NEW JERSEY INDUSTRY KEYWORD: SOFTWARE PAYMENTS FINANCE ARTIFICIAL INTELLIGENCE BANKING PROFESSIONAL SERVICES TECHNOLOGY FINTECH SOURCE: Cross River Bank Copyright Business Wire 2025. PUB: 04/30/2025 08:30 AM/DISC: 04/30/2025 08:29 AM
