Elon Musk has begun rebranding Twitter as X with a simple black letter X-ing out the iconic blue bird logo. The reaction has been mixed so far. Some say it conjures cool, as in “X marks the spot,” while others suggest it evokes a corporate industrial “Big Brother” that could negatively impact the successful brand. Whether it will help Musk and CEO Linda Yaccarino monetize the social service remains to be seen, but it definitely marks a clean break from a colorful past. On Monday, at Twitter’s San Francisco headquarters, feathered features like the company logo that once lorded over the cafeteria were removed, and stylized X logos were projected. Continue reading Twitter Rebrands as ‘X’ in Next Step Toward ‘Everything App’

A federal court has approved an agreement between Binance co-founder and CEO Changpeng Zhao and the Securities and Exchange Commission that will allow the embattled cryptocurrency firm to continue operating while fighting an SEC civil fraud lawsuit, the outcome of which may determine the future of the crypto business in the United States. Filed June 5, the Binance charge rocked an industry already reeling from market turmoil and SEC complaints against Coinbase and the founder of FTX. The SEC initially moved to freeze Binance’s U.S. assets, but the company said that would put it out of business here. Continue reading SEC Provides Binance a Lifeline as It Pursues Fraud Charges

Well-funded software startups are springing up to target the enterprise market with generative artificial intelligence technology of the type popularized by ChatGPT. In 2022, global venture-capital investors parked $1.3 billion in more than 78 generative AI startup deals, according to PitchBook Data. That’s nearly as much as the combined capital investment in other tech startups over the past five years, and it came at a time when the broader investment sector was experiencing a slowdown, PitchBook found. Two of Q4’s biggest venture deals were for the generative AI startups Jasper, based in Austin, Texas, and Stability AI, headquartered in London. Continue reading Venture Capital Investors Are Drawn to Generative AI Startups

Twitter’s December adjusted earnings and revenue fell about 40 percent, year over year, according to reporting in The Wall Street Journal. CEO Elon Musk, who completed his acquisition of the social platform in October, has instituted deep cuts as he tries to reinvent the company hobbled with an estimated $1 billion in interest per annum on the $13 billion he borrowed to helped pay for the company. The troubles are due in part to bad timing, as the ad market on which Twitter and other socials depend took an overall downturn. Musk, nonetheless, remains optimistic the company will at least break even in 2023. Continue reading Twitter Revenue and Adjusted Earnings Are Down 40 Percent

The FTX crash and ensuing fallout has fueled efforts by Congress and federal regulators to rein in the cryptocurrency business, which caused massive investment losses this past year. Senator Sherrod Brown (D-Ohio) and Congressman Patrick McHenry (R-North Carolina) are among those leading the charge to put consumer safeguards in place. McHenry in January became chair of the House Financial Services Committee. Legislators are also calling for robust enforcement of existing laws, which the crypto industry has been resisting. Senator Elizabeth Warren (D-Massachusetts) said Congress needs the resources “to be an effective cop on the beat.” Continue reading Crypto Meltdown Renewing Regulatory Interest on Capitol Hill

Elon Musk is seeking a payments system for Twitter as he pursues his plan to make it a “super app” along the lines of China’s WeChat. Musk outlined his vision in a live presentation on Twitter Spaces to more than 100,000 users and advertisers, including reps from Adidas, Kate Spade, Nissan and Walgreens. Musk has been brainstorming with confidants over ways to improve Twitter and make it profitable. Last week, Twitter filed registration paperwork with the Treasury Department for approval to add payments. Meanwhile, top privacy and security executives are leaving the company after Musk told employees “bankruptcy isn’t out of the question.” Continue reading Musk Takes to Twitter Spaces to Share Plans for the Platform

Apple’s all-in approach to buy now, pay later (BNPL) is viewed as an indicator of the company’s increased emphasis on financial services. Apple Pay has been around since 2014, and three years ago the tech giant issued a credit card with the help of Goldman Sachs. Now, Apple Pay users will be able to avail themselves of the new Apple Pay Later. A subsidiary of the Cupertino-based iPhone firm has received the necessary licenses to launch the new financial offering in most U.S. states. Apple’s initial plans are to underwrite and fund loans capped at $1,000. Continue reading Apple to Shake-Up Financial Services Sector with BNPL Plan

Wall Street is warming up to cryptocurrencies. Large banks and other financial institutions have been staffing departments ready to serve clients’ blockchain needs. Hedge funds and professional investment outfits led the way, with many mutual funds and pension managers now following along, lest they be perceived as out of touch. Some say the involvement of traditional investment sectors could add some stability to the often-volatile crypto markets, whose ongoing viability is hardly assured. Although Coinbase CEO Brian Armstrong thinks it is, predicting that at least one billion people will have tried crypto within a decade. Continue reading Wall Street Begins Dabbling in Crypto While Some Hang Back

Washington policymakers have identified stablecoins as the initial target for stricter cryptocurrency regulation. Stablecoins — which are backed by a reserve asset — are booming due to investors using them to trade among other cryptocurrencies. The stablecoin sector grew by about 500 percent in the 12-month period ending October 31, according to a report issued by the Biden administration. While there are four basic types of stablecoin, the ones collateralized by fiat currency — and specifically the U.S. dollar — is by far the most popular. A bipartisan effort exists to create safeguards ensuring one stablecoin is expeditiously redeemable for one dollar. Continue reading U.S. Lawmakers Target Stablecoin in Cryptocurrency Debate

Apple is exploring various financial technologies for future products that would reduce the company’s reliance on third-party products over time, reports say. Payment processing, lender risk assessment, consumer credit reports, dispute mediation and fraud analysis are among the areas Apple is looking into, according to those who claim knowledge of the situation. The move would build Apple’s profile in a category that currently includes Apple Wallet, branded credit cards, peer-to-peer payments and a merchant app involving iPhones. As previously reported, Apple is also working a subscription hardware model and further enhancements to Apple Pay. Continue reading Apple Explores Greater Role in Consumer Financial Services

Investment banking firm JPMorgan Chase is betting on the metaverse, which it predicts “will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenues.” The company has opened a virtual branch in Decentraland, a browser-based 3D world to coincide with publication of the 18-page “Opportunities in the Metaverse” report by Onyx, the blockchain division the bank launched in 2020. Although it’s the first bank known to open a branch in the metaverse, JPMorgan is just the latest of numerous businesses to plant its flag. Continue reading JPMorgan Pegs Metaverse at $1 Trillion, Opens Virtual Bank

As cryptocurrencies undergo explosive growth with little federal oversight, the Treasury Department is asking Congress for more power to regulate stablecoins due to their perceived danger of triggering a run on funds, according to a report by the President’s Working Group on Financial Markets. Treasury is asking that those issuing stablecoins be subject to the same requirements under which banks and other traditional financial institutions operate, which would require the crypto’s brokers to maintain sufficient reserves to compensate customers who want to cash out quickly. Continue reading Regulators Press Congress to Develop Cryptocurrency Rules

PayPal has begun rolling out its new app, designed as a one-stop financial services tool capable of handling everything from direct deposit and automatic payments to peer-to-peer transactions, shopping and crypto capabilities. In addition, the company has announced PayPal Savings, offering high-yield accounts in partnership with Synchrony Bank. Shifting paychecks to PayPal is seen as a big step that can centralize consumer financial chores through the service, making it competitive with neobanks like Chime and Varo. PayPal now links to 17,000 billers including utilities and credit card firms. Continue reading PayPal Launches Super App for Consumer Financial Services

Global firms such as Amazon, IKEA, Mercedes-Benz and Walmart are cutting out traditional financial institutions in favor of financial technology, or “fintech” — startups offering everything from banking and credit to insurance. Embedded finance, a term for companies integrating software to offer services like “buy now pay later” at check out, are poised to disrupt the status quo, according to Reuters, which reports that while “banks are still behind most of the transactions,” analysts are warning that as they “get pushed further away from the front end of the finance chain” they’ll be frozen out of lucrative consumer data mining. Continue reading Embedded Finance Becomes More Popular Across Industries

Amidst political turmoil and economic struggle, El Salvador has announced it is adopting Bitcoin as its national currency, becoming the first country in the world to do so. But things got off to a rough start this week as the Bitcoin e-wallet went offline for several hours as consumer download demand overwhelmed government servers. El Salvador President Nayib Bukele said the country will spend more than $225 million to launch Bitcoin. Global Bitcoin enthusiasts supported the initiative by buying $30 of Bitcoin, but that didn’t prevent the currency from declining 9.9 percent Tuesday evening. Continue reading El Salvador First Country to Make Bitcoin a National Currency