Uncle Sean's Update - 4/2/21

Happy Good Friday!!!
 
It was a short Holliday Week for many folks, but jam packed with some really cool market events – Here is the Uncle Sean Update for 4/2/21:
 

• Visa announced the ability to settle USDC stablecoin in a pilot program over Ethereum blockchain.  “Working with Anchorage, the first federally chartered digital asset bank and an exclusive Visa digital currency settlement partner, Visa has launched a pilot that allows Crypto.com to send USDC to Visa to settle a portion of its obligations for the Crypto.com Visa card program.”  While initially only available on the Crypto.com platform via Anchorage API’s, Visa will offer the service to more partners later this year.

 

• Paypal launches Checkout with Crypto – a crypto payment platform that allows customers to convert cryptocurrencies into fiat currencies when they place their order (presumably cutting any cryptocurrency volatility risk for the merchant).  This expands on their partnership with Paxos as well as their recent acquisition of Curv (cryptocurrency security firm).

 

• Unifimoney partners with Gemini for cryptocurrency trading of more than 30 cryptocurrencies to Unifimoney customers.  “Unifimoney users will now have access to Gemini’s platform through their Unifimoney account and can access the full suite of Gemini’s crypto assets to seamlessly buy, sell, and store their crypto. This partnership makes Unifimoney the only investing app that allows users four different ways to invest including passive investing with robo portfolios and auto invest, active trading commission free, access to trading Gold, Silver, Platinum, and Palladium, and now the ability to trade cryptocurrencies.”

 

• Q2 announces agreement to acquire ClickSWITCH.  This is definitely a strategic acquisition to supplement their Q2 GRO digital new account opening app as ClickSWITCH is an “automated financial account switching solution” that allows account holders to switch to another financial institution in minutes.

 

• Walgreens is making news this week related to their upcoming launch of a bank account and mobile app consisting of a Mastercard debit card (MetaBank).  This comes after they announced a Mastercard credit card offering (Synchrony Bank) earlier this year.  Did you know that Walgreens has over 9,000 locations (who said the branch model is dead – LOL)?  While we are on the topic of retail embedded banking, did you know that 7-Eleven has a mobile banking app?  Seriously – check it out at Transact by 7-Eleven.  They have a prepaid GPR Mastercard debit card (MetaBank) with a mobile app, rewards, bill pay, and mobile check deposit (Ingo Money / First Century Bank).

 

• Yep – I am reading the same articles as you are regarding H&R Block planning to enter the digital banking space….  And I am confused too…  H&R Block already has Wave Money (business) app with a Visa business debit card issued by Community Federal Savings Bank; as well as the Emerald Card (consumer) including mobile app, personal loans, and prepaid GPR Mastercard debit card issued by MetaBank with direct deposit, mobile check deposit (Ingo Money / Sunrise Banks), and bill pay….  See page 38 of the Dec 2020 Investor Day Presentation where H&R Block mentions that “67% of Block customers likely to open a bank account with Block if offered”…..  Maybe someone should let them know that they already have multiple bank account offerings?  Nah - LOL!!!!!

 

• Beam Financial and owner, Yinan “Aaron” Du, get a permanent ban by the FTC (and as well they should) as part of a settlement – OUCH!!!! 

 

• Dapper Labs, a non-fungible token (NFT) company behind CryptoKitties and NBA Top Shot, has raised $305M at a valuation of $2.6B.  If you haven’t seen it, you MUST watch this hilarious SNL YouTube video on NFT’s – it’s an instant classic!

 

• Coinbase set to commence trading on April 14 after receiving SEC approval for their direct listing; and selects Brett Redfearn (former director of the SEC) to run their capital markets division.

 

• Vystar Credit Union announced an agreement to acquire Heritage Southeast Bank in Georgia.  A quick cursory review of the FedFis M&A database (yes, that was a plug) tells me that this is the largest Credit Union acquisition of a Bank EVER as HSB has $1.57B in total assets as of 12/31/2020.  This is also VyStar’s second acquisition of a bank in 2 years.

 

• The NCUA liquidated Indianapolis’ Newspaper Federal Credit Union (INFCU) this week.  Although there have been three CUs conserved this year, this is the first liquidation since May 2020.  Special shout out to the FedFis Analyst Team (yes, another plug) - they are freakin’ Rock Stars!!!  The FedFis Rating © for INFCU was 4.56 at 9/30/20 call report and 4.63 at 12/31/20 call report placing them in the lowest possible percentile for the last six months.  The FedFis Rating © is consistent with regulator scoring on a 1.00 (best) to 5.00 (worst) scale.

 

• I believe it was the 2/26 Uncle Sean Update where we talked about TransferWise changing their name to Wise (wise.com/us), but not to be confused with the original Wise (wise.us)….  Well, now the original Wise (wise.us) has changed their name to Solid…..  You know I just can’t help myself, so here it comes - Wise got wise to TransferWise’s change to Wise and so Wise became wiser and converted to Solid - but who is the wisest with the wisecracks???  LOL!!!!!

 
 
Random Uncle Sean Stuff:

• Me and Aunt Patty daringly ventured out of the house last Saturday and went to Creekside Cookers BBQ and Bar in Wimberley, TX for lunch.  It’s a nice setting under huge Live Oak trees with outdoor picnic table seating and a full outdoor bar.  Aunt Patty had Loaded Rodeo Nachos (with chopped brisket) and I had catfish and some ice cold beer.  The food was fantastic and the outdoor venue was everything I had hoped for.  Springtime in the Texas Hill Country is nothing short of amazing. 
• And the Final Four is set!  Women: South Carolina vs Stanford and UConn vs Arizona, Men: Houston vs Baylor and UCLA vs Gonzaga!!!!!
• Does surfing the internet count as exercise (asking for a friend)?

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
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