JPMorgan and Citi Square Off on the Next Payments Frontier
Infrastructure
”JPMorgan Chase & Co. and Citigroup Inc. have long competed for dominance in global payments, processing trillions of dollars worth of flows from corporates moving money across borders. That rivalry is now extending to new payment rails. As digital money moves closer to the financial mainstream, the two banks are building competing systems, but taking slightly different paths. Citigroup has signaled openness to stablecoins, partnering with crypto exchange Coinbase Global Inc. to build payment capabilities, while simultaneously running its tokenized deposit service. JPMorgan has centered its strategy on in-house infrastructure and has been more cautious on stablecoins, pointing to limited wholesale client demand so far.”
Source: Bloomberg
Senate Crypto Bill Faces April Setback Amid Growing Pressure to Get Legislation Through
Regulation
“Tensions are building to get a hearing on the calendar to advance crypto market structure legislation. On Monday evening, Sen. Thom Tillis (R-N.C.), a key negotiator on the Senate Banking Committee in getting a broader bill passed into law, told reporters that he does not expect the committee to hold a hearing to amend and vote on the bill in April, according to a report from Punchbowl News. Sens. Tillis and Angela Alsobrooks (D-Md.) have been pivotal in ironing out a 'main blocker' around the treatment of stablecoin rewards. The issue was tackled in the GENIUS stablecoin legislation approved in July, which bars stablecoin issuers from paying interest straight to holders. Still, it doesn't prevent outside platforms - such as Coinbase - from providing rewards. Banking industry representatives argue that allowing these kinds of returns could draw deposits away from traditional banks, potentially weakening community institutions.”
Source: The Block
Strategy Buys $2.54 Billion of Bitcoin, Most Since Late 2024
Treasury Companies
“Michael Saylor’s Strategy Inc. bought $2.54 billion in Bitcoin over the previous seven days, marking the digital asset treasury company’s largest acquisition of the original cryptocurrency since November 2024. The purchases made in the week ended April 19 were primarily funded through the sale of $2.18 billion of STRC, or Stretch, perpetual preferred shares, according to a US Securities and Exchange Commission filing Monday. The remainder was financed through the sale of common shares. Strategy has benefitted from the recent three-week long rally in Bitcoin, the longest winning streak for the digital currency since July. The rising cryptocurrency price helps to bolster demand for both the common and preferred shares. The stock rallied almost 30% last week as Bitcoin touched a two-month high.”
Source: Bloomberg
Global Cooperation on Stablecoins Critically Important, BIS Says
Stablecoins
“The Bank for International Settlements' chief has made a renewed call for international cooperation on how stablecoins are used, saying this is vital to prevent severe market fragmentation. The central bankers’ central bank, as the BIS is known, has long raised concerns about stablecoins - a type of cryptocurrency usually pegged 1:1 to the U.S. dollar. Speaking in Japan, BIS General Manager Pablo Hernandez de Cos said the potential of stablecoins to undermine monetary and fiscal policy, cause financial market stress and hamper the fight against illicit financing, meant global coordination was of 'critical importance'. Without it, 'divergent regulatory frameworks for stablecoins across jurisdictions could lead to severe market fragmentation or enable harmful regulatory arbitrage,' de Cos said, referring to when firms seek out the least onerous rules.”
Source: Reuters
Coinbase, Bybit Said to be Working Together on Tokenization, Custody And Distribution of U.S. Stocks
Tokenization
“Crypto exchange Coinbase (COIN) is working with Bybit, one of the largest crypto trading platforms, to explore ways to tokenize, custody and distribute assets such as U.S. public and pre-IPO stocks, a person familiar with the plans told CoinDesk. The talks, which are in progress, do not involve any sort of stake acquisition or similar deal for Bybit to enter the U.S., said the person, who asked to remain anonymous because they are directly involved in the discussions, dismissing a report of an investment publicized last month. Bybit is, indeed, planning to enter the U.S., just not with Coinbase, said the person, who declined to identify the partner. It will create a new entity said to be spearheaded by former Bybit co-CEO Helen Liu. The local partner will provide licensing and compliance while Bybit provides the tech, product and liquidity, the person said.”
Source: CoinDesk
