June 02, 2021 / 12:00PM / By FintechNGR / Header Image Credit: KPMG
CBDCs, digital and cryptocurrency are seemingly gaining more momentum with incumbents and government institutions as the Central Bank of Bahrain, Bank ABC and J.P. Morgan recently announced a digital currency settlement collaboration. It is currently still at pilot stage and is posed to introduce instantaneous cross border payment solution for transferring funds in US-Dollars from buyers to suppliers.
Still at the government level, countries are beginning to look along regulatory lines. On the South American plain, the Argentinean tax body has asked domestic cryptocurrency exchanges to report monthly transactions and wallet balances.
Silvergate Capital Corporation is set to partner with Diem to issue Stablecoin in the US and this partnership is set to make the latter become the exclusive issuer of the Diem USD stablecoin.
Funding Rounds, Valuations & IPOs
On the African terrain, Egyptian fintech startups, Telda, and Bosta has raised $5 million in pre-seed round and the latter $6.7M to expand its delivery business. Telda is the first digital bank in Egypt on a mission to revoltionize how GenZ in the Middle East bank, and it already has 30,000 sign ups.
On the global scene, fintechs are having a ball with the rate different startups have been in the news for one funding round or the other. Amount, which helps bank go digital in record time with its enterprise software, has raised $99 million in a Series D round at a valuation of just over $1 billion.
Acquisitions, Partnerships & Expansion
One of the trends identified over the past few months has been an increase in partnerships, especially across different industrial sectors. AT&T is not to be left out as it nears deal to create $150bn streaming giant with Discovery.
The race to maintaining market share is still on as Amazon is in talks to buy MGM for $9bn. This comes across as a strategic move for the retail brand as it would likely boost increased acceptance and usage of its streaming platform, Amazon Prime, seeing that MGM pulls its weight alongside studios like Marvel, Discovery, and Disney.
Access Bank shows no sign of relenting on its cross-border quest, as it was recently announced that it had completed the acquisition of African Banking Corporation in Mozambique, allegedly backed by Atlas Mara Limited. Seeing that Atlas Mara is the largest shareholder in Union Bank, could there be any merit to previous speculations of Access Bank interest in acquiring Union Bank?
On the overall, acquisitions and partnerships are definitely trends to watch on the fintech space, especially as regards expansion and fast scale.