In this analysis, we explore an overarching framework for the M&A activity in the fintech, big tech, and crypto ecosystems. We discuss acquihiring, horizontal and vertical consolidation, as well as the differences between growth and value oriented acquisition rationales. The core insight, however, is about the arbitrage between the fintech and financial services capital markets, as evidenced by the recent transactions for Starling and Figure.
Paying attention is the path to seeing and doing. Mastercard has bought CipherTrace to see blockchain-based finance, to launch new businesses, and to plug in more networks into its nexus. The crypto networks proliferate at every layer, creating more computation on Ethereum, Polygon, Arbitrum, Optimism, Fantom, and Solana. The US executive seeks to see more too, asking the banks for their records of financial transactions to enforce taxation compliance.
Co-Founders CJ MacDonald and Alexey Kalinichenko launched Step to offer teens financial tools. They plan to add stock and crypto investing.
On Tuesday, Paris-based Web3 payments startup Request Finance launched "Salaries" to help Web3 enterprises automate payroll in crypto.
Minterest follows a disciplined approach in developing its decentralized finance lending protocol, one born from its founder's experience.
