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Interest in insolvent cryptocurrency lendings – Industry roundup: 12 August

KeyBank to promote global e-commerce via BlueSnap’s array of payment gateway options

KeyBank's US gateway has selected BlueSnap, a worldwide payment management platform, to assist the bank’s middle market and institutional clients in the e-commerce landscape by providing them more sophisticated payment alternatives and capabilities.

Businesses can expect to sell in more than two hundred regions using a single integration and contract. Reports indicate that they can have access to local card acquiring in forty-seven countries, over one hundred currencies, and over one hundred worldwide payment types. Some of the payment options include well-known digital wallets, automated accounts receivable, top-notch fraud protection and chargeback management, established regulation and tax compliance solutions, as well as a globally integrated reporting system.

Ralph Dangelmaier, CEO, BlueSnap, commented that their scalable payments solution will enable payments for millions of merchants and Independent Software Vendors (ISVs) in the United States and around the world.

Open finance agreement by Wise and Plaid to empower secure financial networking

Wise, a global technology firm, and Plaid, an API-first data network that powers the digital ecosystem, have entered into an open finance agreement to provide users with a secure and simple method to transfer funds across various financial institutions, enabling access to thousands of apps for its thirteen million customers. Wise is reportedly the first fintech to use Plaid's latest Core Exchange API. Customers can now expect to connect their US Wise accounts to over 6000 apps, including Venmo, Robinhood, Truebill and Chime, using Plaid's open finance tool, Core Exchange.

Reports indicate that Wise customers are already benefiting from the collaboration with peer-to-peer payments and investment platforms. Additionally, the services made available by Plaid are reportedly being used by business customers in the US to pay taxes and credit card bills as well as to link to neobanks and connect to payroll companies.

Reports indicate that Plaid offers a simple, cost-free method for data partners to implement the financial data exchange API specification. It is also said to expand Plaid’s Exchange by assisting businesses in facilitating data connectivity on behalf of their clients.

SBS becomes the primary distributor of Modex's blockchain-based solutions in MENA

Modex, blockchain-based solutions provider, has named Superior Business Solutions Inc. (SBS) as the principal distributor for the Middle East and North Africa (MENA) region and across Africa. SBS is a US-based IT solutions provider with operations in the UAE, Kuwait, Qatar and Egypt.

The new partnership between SBS and Modex will enable both parties to provide sophisticated services that they claim will redefine how data and digital assets are saved, exchanged and maintained, resulting in greater transparency and data integrity.

Reports indicate that SBS intends to provide blockchain-powered solutions in multiple industries, including healthcare, business and finance, through its collaboration with Modex. The two companies plan to integrate blockchain solutions with their customers' existing data systems in a seamless manner, resulting in increased operational efficiency, security and transparency.

According to Adel Youssef, CEO, SBS, the MENA blockchain market is expected to grow from US $199 million in 2021 to US $7.6 billion by 2028, with a CAGR of 68.3%. Reports indicate that the government requires rapid growth in sectors such as healthcare, banking, telecommunications, logistics and many others, and the use of blockchain-based solutions can help accelerate development in these areas.

Fortune Business Insights reported that the global Blockchain-as-a-Service (BaaS) market was worth US $1.9 billion in 2019 and is expected to be worth US $24.9 billion by 2027, growing at a 39.5% CAGR. Growing adoption of BaaS tools and services by small and medium-sized businesses to create their own blockchain applications, smart contracts and payment systems is expected to fuel market expansion over the projected period, claims the report. The benefits of BaaS services, such as smart decentralization, data immutability and integrity, high efficiency, cost-effectiveness and robust security, are being investigated by companies of all sizes in this regard.

Ripple Labs shows interest in insolvent cryptocurrency lender Celsius's assets

Ripple Labs Inc, US-CA based blockchain firm, is considering purchasing assets from US-NJ based crypto lender Celsius Network, which froze withdrawals in June 2022 and filed for bankruptcy in July 2022, declaring a US $1.19 billion deficit on its balance sheet. Ripple has reportedly grown despite the crypto market volatility and is said to be actively seeking M&A opportunities to strategically scale.

Ripple's legal representatives filed petitions with the bankruptcy court to be represented in the proceedings last week, and the filing was approved by the court earlier this week. According to Celsius's bankruptcy filings, Ripple is not one of the company's major creditors.

Celsius's assets, according to the bankruptcy filings, include digital assets held in custody accounts, loans, a bitcoin mining business, the company's own CEL token, and bank cash and cryptocurrencies on hand.

Ripple, which is privately held, has not previously completed any significant transactions. Despite the market values drastically declining as a result of the recent collapse in cryptocurrency prices, which helped bring down Celsius and other cryptocurrency enterprises, the company stated that it was valued at about $15 billion after a private stock buyback in January 2022. According to a report released by Ripple in July 2022, the firm's total sales of its cryptocurrency XRP, net of acquisitions, were $408.9 million in the second quarter compared to $273.27 million in the first quarter.

Morgan Stanley intends to launch a direct lending fund in Europe

Morgan Stanley’s asset management division is reportedly planning a direct lending strategy in Europe and expects to raise between €2 billion and €3 billion in its initial plan. According to reports, the firm expects to deploy the capital in early 2023.

The private alternatives division is said to manage US $115 billion in assets across a variety of strategies such as opportunistic private credit, European real estate secured private credit, and private real estate credit. Additionally, the firm acquired Eaton Vance in 2021, contributing numerous private market funds to its portfolio.

In recent years, an increasing number of asset managers have expanded their private markets divisions, specifically in private credit.

TreviPay expands business payments via small business network solution

TreviPay, a B2B payments and invoicing network provider, has expanded its Small Business Supplier Network (SBSN) across the United States in order to meet businesses’ needs following the launch of its specialized networks for large enterprises and midmarket businesses.

The SBSN is said to operate as a fully integrated, end-to-end payments network that will run in parallel with card payments. Additionally, banks can expect to deliver a white-labelled, structured financial service to small business suppliers who sell to businesses and governments on invoice payment terms.

TreviPay will reportedly collaborate with banks to offer flexible payment terms to clients of small business suppliers, while helping to ensure that the vendor is paid virtually debt-free. With the new small business product offerings, TreviPay's SBSN enables member banks to enter the small business B2B trade credit and business banking market. Additionally, members will have the ability to tailor their solutions and go-to-market strategies, as well as monitor their risk policies and establish supplier fees. Banks can expect to launch this new product without incurring capital costs or integrating new technology.

Business customers frequently receive trade credit, which is customary and frequently viewed as important to maintain competitiveness, draw in new or larger clients, strengthen existing relationships, and promote customer retention. Small business suppliers, however, continue to use their own working capital to cover the majority of the trade credit they extend. This lengthy, ineffective utilization of their scarce cash flow ultimately hinders their ability to grow and bounce back, added reports.

Rissi Lovern, Head of Small Business Markets, TreviPay, commented that the SBSN expects to build an infrastructure and technology framework to help eliminate small business trade credit, similar to credit card networks eliminating B2C trade credit for retailers.

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