We haven’t talked about crypto for a while in this newsletter. Coinbase reported earnings yesterday (PDF here) so this provides a perfect opportunity to reflect on the state of crypto.
Last year was a great year for crypto. Since the market bottomed out in December 2022, the price of bitcoin has more than tripled. Enthusiasm for the recently approved Bitcoin ETFs has remained strong with BTC now over $52,000 as of this writing.
Coinbase has come through all the crypto drama of 2022 and 2023 relatively unscathed. And their earnings demonstrate that. In Q4 the company generated revenue of $954 million and earnings of $276 million, both well ahead of expectations.
During the crypto winter, the company did two large rounds of layoffs to trim costs and now has a lower cost base, a good position to be in as the market has recovered.
The company told investors that in 2024 it will be focused on building out USDC infrastructure as well as its layer-2 blockchain Base. And it will continue to ride the crypto bull market while it lasts.
Featured
> Coinbase cites stablecoins, Base as key 2024 priorities after crushing Q4 estimates
By Jacquelyn Melinek
After disclosing better-than-expected financial results in its fourth-quarter earnings report, U.S.-based Coinbase has big plans. The second-largest crypto exchange told its investors that it intends to lean heavily on its work with the popular USDC stablecoin this year and lever its recently launched layer-2 blockchain Base
From Fintech Nexus
> Brazil’s Pix to reach 40% of online shopping by 2026, study shows
By David Feliba
One of the most popular payment methods in Brazil, Pix is now set to take over online commerce too, a study by fintech EBANX shows.
> These Four Trends are Shaping How Fintech Should be Using Generative AI
By Michael Heffner
Generative AI is powering fintech modernization with streamlined processes and automated workflows. Transformation teams find the greatest ROI is driven by 4 key adoption trends, especially when supported by an AI-specific risk management strategy.
Podcast
Diarmuid Thoma, VP of Fraud & Data Strategy at AtData on the power of email address data
The head of fraud and data strategy at AtData, Diarmuid Thoma, talks about the importance of email addresses in preventing…
Also Making News
- USA: CFPB Takes Aim at Consumer Credit Card Rates
The CFPB aims to boost competition in the credit card industry to deliver lower rates to consumers. The agency announced this plan while releasing data showing that consumers with credit cards from the 25 largest issuers faced higher interest rates, regardless of their credit risk.
- USA: Why fintechs want the CFPB—not states—to rule on earned wage access
Nearly a dozen states are looking to regulate digital payroll advance products, prompting a fintech trade group to ask the Consumer Financial Protection Bureau to conduct a formal rulemaking.
- USA: Mastercard and The Clearing House deepen their partnership to zero in on new instant payments applications
Mastercard recently expanded collaboration with The Clearing House (TCH), with the shared goal of propelling the adoption of instant payments. This extended partnership will focus on integrating additional instant payment use cases across a range of payment flows for consumers, businesses, and governments.
- USA: As Bitcoin Rallies, Banks Are Pushing US Regulators to Change Crypto Guidance
A letter sent to the SEC from banking groups comes during a renewed push in Congress to repeal the rule. The SEC wants banks to count crypto held for clients as a liability.
- Global: Lessons from JPMorgan’s fallout with the fintech Viva Wallet
The bank is arguing in court with Viva founder Haris Karonis over whether it hindered the fintech’s growth. The allegations strain a relationship that was already pressured by inflation and other economic factors.
- USA: U.S. Bank and Pagaya forge path to broaden personal loan accessibility
U.S. Bank has recently joined forces with Pagaya Technologies, a global leader in AI-powered financial solutions. This strategic partnership is aimed at enhancing access to personal loans for a broader range of clients, marking a significant step forward in financial inclusivity.
- Global: Checkout.com hit by over £100 million in losses
Payments platform Checkout.com has reportedly suffered a £100.5 million loss in its UK company.
To sponsor our newsletters and reach 275,000 fintech enthusiasts with your message, contact us here.
