A library of snippets
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The Financial Conduct Authority’s latest Feedback Statement on tokenisation in wholesale financial markets is telling in where institutional demand is concentrating.
Collateral mobility emerged as the most frequently cited use case, with tokenised money market funds, real-time margining and faster movement of collateral all pointing toward a more efficient post-trade architecture.
From: Post | LinkedIn.
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One way to improve legibility is to use a structured data format called JavaScript Object Notation for Linked Data (JSON-LD) on a company’s website. This makes the content easier for LLMs to read and understand.
From: Why AI models favor fintechs over traditional banks | American Banker.
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The London Stock Exchange has already announced plans to launch UK tokenised equity structures as part ot their broader work to modernise market infrastructure through initiatives including LSE 24 (their new 24-hour trading venue). Their partnership with Payward will focus on exploring how digital-native access, wallet-based interaction and partner infrastructure could facilitate seamless connectivity between tokenised and traditional infrastructure. Interestingly, separately (and subject regulatory approval) next year the exchange intends to list wrapped equities on LSE24 (they call them “xStocks”).
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If every household used AI agents to optimize the return on their cash balances, banks could lose a large share of the cheap deposits they rely on to make loans, which would be a problem for the entire financial system.
From: Is an Agentic Bank Run Coming? | The Daily Spark | Apollo Global Management.
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Financial institutions may use a mobile driver’s license or other government-issued virtual ID as a form of documentary verification for purposes of customer identification program compliance, so long as they maintain the appropriate technology or systems to extract the relevant information from the IDs, according to FAQs published today by the Financial Crimes Enforcement Network and banking agencies.
From: FinCEN, banking agencies release FAQs on digital credentials, customer ID | ABA Banking Journal.
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Key insight: A study found that large language models endorse fintechs for small-business banking far more than they recommend traditional banks.
What’s at stake: Banks could become invisible to entrepreneurs starting new businesses.
Forward look: Companies can improve their chances of being recommended by an LLM by working on legibility.
Banks, as well as other businesses, have spent decades working on “SEO optimization,” making their websites and online information easily accessible to search engines such as Google and Bing. A new study confirms that they now need to start thinking about “LLM optimization,” making their websites and online information accessible to AI-powered chatbots such as ChatGPT or Gemini.From: Why AI models favor fintechs over traditional banks | American Banker.
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Germany’s Federal Employment Agency (Bundesagentur für Arbeit) is bringing in the use of ‘SocialCards’ to pay benefits to citizens without a bank account and who, until now, have received government cheques to exchange for cash in Postbank branches.
From: German employment agency brings in payment cards for people without bank accounts.
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Simon Taylor xxx
The current MiCA makes e-money token issuers (stablecoin issuers to you and me) hold at least 30% of reserves as bank deposits (60% for significant tokens). The ECB and all 27 EU national central banks want that gone, in their MiCA review response published today.
Which is. Fascinating.
They’d replace it with a timing rule which says a set share of reserves must turn into cash within one working day and within five, using overnight reverse repo or short-dated government bonds.
Which happens to be how stablecoins tend to work in the US.
The official framing is genius because it has a real worry. Their worry is contagion. A stablecoin run would force the issuer to drain its bank deposits fast, and those banks would inherit a crisis they didn’t create.
The central banks also admit the deposit rule cut issuer revenue. EU reserves can now look like the T-bill book behind a dollar stablecoin.
So this is how you sell “reducing risk” as also being “a better business model for stablecoins” and competing with the US when you’re worried about soverignty.
The regulators still prefer a ban on multi-issuance, so a USDC issued in Europe stays a separate token from one issued in the US. Although they did set out a path to allow it, starting with a test of whether the other country’s rules are equivalent.
Put those together and you get a business model. A global issuer runs a separate EU token whose reserves earn a proper return, and equivalence becomes the route back to one fungible token.
Banks pay for it with a slug of lost wholesale funding. The central banks also want the yield ban stretched to crypto lending and staking, so the return stays with the issuer.
And now it looks a lot like GENIUS no?
The Commission still decides. If you’re an issuer, rerun your EU unit economics now. If you’re a bank, the opportunity moves from holding stablecoin deposits to running repo and custody.
Euro stablecoins at scale become steady buyers of short-dated EU government debt.Dollar stablecoins lean on one deep market, US Treasuries. Euro issuers pick between Bunds, OATs and BTPs, each with its own credit risk.
The only thing we need now is a Eurobond…
From: Post | LinkedIn.
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Harsh Mehta xxx
Global e-commerce is roughly $6.4tn. If an agent intermediates just 1% of that, that’s $64bn of GMV flowing through the interface. A 1% take rate is $640m of revenue. At 2.5% share, it becomes $1.6bn.
No inventory. No warehouses. No logistics. Just a thin layer sitting between intent and transaction.
That’s what makes Meta’s Muse interesting.
Meta already sits where a huge amount of purchase intent is created – Instagram, Facebook and WhatsApp. Historically it has monetized the journey towards a purchase through advertising. An agent potentially lets it participate in the transaction itself.
But there’s a big difference between influencing a transaction and being trusted to execute one.
For personal agents to become meaningful commerce channels, consumers have to be comfortable delegating purchases. Merchants have to be comfortable letting agents transact on their sites. And the payment ecosystem has to know things it has never really needed to know before:
From: Post | LinkedIn.
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A recent report estimated that some 11mn adults help others manage their money online — that’s one in five UK adults. However, our banking system is not set up to support this. The Hidden Heroes study found more than half of digital helpers lacked formal authority such as a Lasting Power of Attorney (LPA). Instead, many used risky workarounds, such as sharing passwords, security codes or logging into a relative’s account from their own device.
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