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Visa partners with Worldpay and Nuvei to expand its stablecoin program

Visa partners with Worldpay and Nuvei to expand its stablecoin settlement program, Toast's CEO Chris Comparato to step down, and Robinhood repurchases shares previously owned by the FTX founder

September 06, 2023 • Estimated Reading Time: 8 minutes

Hi!

Visa has a market capitalization of approx. $500 billion, which is more than the rest of the Fintech companies (except Mastercard) combined. So when this payments giant starts using blockchain and stablecoins in its most critical processes (settlement), I get excited. More on that in today’s newsletter.

  • Visa partners with Worldpay and Nuvei to expand its stablecoin program,

  • Toast's CEO Chris Comparato to step down, and

  • Robinhood repurchases shares previously owned by the FTX founder

Thank you for reading and have a great week!

Jevgenijs

p.s. have feedback? DM me on Twitter

Visa Partners with Worldpay and Nuvei to Expand its Stablecoin Settlement Program

Visa (NYSE: V) announced the plan to use USDC stablecoin to modernize its cross-border settlement process. Visa facilitates nearly instant payment authorizations for consumers using Visa cards at millions of merchant locations worldwide. After successful authorization, Visa systems facilitate the movement of funds between a cardholder's bank (the issuer) and a merchant's bank (the acquirer) ensuring the correct amount in the preferred currency is exchanged. This process, known as “settlement”, operates seamlessly across a network of 15,000 financial institutions and encompasses over 25 currencies globally.

Visa, a trusted leader in digital payments

Image source: Visa

Visa has conducted live pilots with both issuers and acquirers, successfully moving millions of USDC between its partners using the Solana and Ethereum blockchain networks to settle fiat-denominated payments. In a bid to expand its stablecoin settlement capabilities, Visa is partnering with merchant acquirers Worldpay and Nuvei and will utilize the high-performing Solana blockchain. “By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we're helping to improve the speed of cross-border settlement,” commented Cuy Sheffield, Head of Crypto at Visa, in the press release.

Toast's CEO Chris Comparato to Step Down

Toast (NYSE: TOST) announced that the company’s CEO, Chris Comparato, will step down on January 1, 2024. Toast’s co-founder and Chief Operating Officer, Aman Narang will replace him. Comparato will stay on the company's Board but will pass the Chair role to Mark Hawkins, an independent director with past experience as President and CFO at Salesforce. Under Comparato's leadership, Toast increased its customer base to 93,000 restaurant locations, grew its headcount from 50 to 4500 employees, expanded to Canada, Ireland, and the UK, and successfully went public in 2021 despite the challenges posed by the COVID-19 pandemic.

Image source: Toast

Earlier this year, Toast generated controversy related to the introduction of a 99-cent fee on online orders over $10, which was intended to fund software improvements. Faced with a widespread backlash from restaurant operators and customers alike, the company announced that it would remove the fee just days after its nationwide implementation. The negative response prompted the CEO, Chris Comparato, to acknowledge the mistake and announce the fee's removal. Nevertheless, Toast posted an Adjusted EBITDA of $15 million in the second quarter of 2023, reaching profitability on an adjusted basis ahead of schedule.

Robinhood Repurchases Shares Previously Owned by FTX Founder

Robinhood (NASDAQ: HOOD) repurchased $605.7 million worth of company stock that was previously controlled by Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX. These shares, totaling about 55.3 million, had been seized by the US Marshal Service and were at the center of an ownership dispute involving FTX, BlockFi, and Bankman-Fried. The purchase was completed at $10.96 per share, resolving the uncertainty around the ownership of these shares and eliminating a near-term overhang on Robinhood's stock. Bankman-Fried, facing fraud charges, had been under arrest since December last year.

Last month, Robinhood reported its first profitable quarter on a non-adjusted basis, as the company continues to benefit from a higher interest rate environment, earning higher interest income on customer deposits and its corporate cash balance. Thus, GAAP Net income reached $25 million in the second quarter of 2023, which compares to a GAAP Net loss of $295 million a year ago. The company’s quarterly revenue increased 53% YoY to $486 million, driven by a 216% YoY growth in net interest revenue. Robinhood’s customers deposited an additional $4.1 billion during the quarter, bringing the total net deposits over the past year to $16.1 billion.

The best-performing Fintech companies year-to-date: Upstart (NASDAQ: UPST) +153%, Affirm (NASDAQ: AFRM) +126%, Remitly (NASDAQ: RELY) +122%, Coinbase (NASDAQ: COIN) +118% and Paymentus (NYSE: PAY) + 97%.

The worst-performing Fintech companies year-to-date: Expensify (NASDAQ: EXFY) -50%, Katapult (NASDAQ: KPLT) -44%, Adyen (AMS: ADYEN) -39%, Nuvei (NASDAQ: NVEI) -26% and LendingClub (NYSE: LC) -20%.

Cover image source: Visa

Disclaimer: Information contained in this newsletter is intended for educational and informational purposes only and should not be considered financial advice. You should do your own research or seek professional advice before making any investment decisions.

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