Financial Technology Weekly | Issue 18

The subsidiary of Nomura Securities invested in Infinity, a "hybrid finance" venture

On February 15, 2023, Laser Digital, a digital asset subsidiary of Nomura Securities, announced its strategic investment in Infinity, a financial technology start-up. Infinity was founded by Kevin Lepsoe, the former head of Morgan Stanley's structure. As a groundbreaking interest rate agreement, Infinity has laid the foundation for the benchmark interest rate and institutional loan, loan and risk management in DeFi. Infinity's wholesale exchanges provide inter-exchange clearing, fixed and floating interest rate markets, and enterprise-level risk management using mixed on-chain/off-chain infrastructure. Laser Digital, a subsidiary of Nomura Securities, is headquartered in Switzerland and mainly focuses on investment in DeFi, centralized finance, Web 3.0 and blockchain infrastructure. This investment marks the coordinated promotion of traditional investment banks to institutional DeFi or "hybrid finance".

Information link:

https://www.theblock.co/post/211852/nomura-laser-digital-invests-infinity-exchange

Comment: Hybrid finance - also known as institutional DeFi or "HyFi" - represents an evolution direction of DeFi and combines the elements of decentralized and centralized finance. It aims to improve the efficiency, scalability and security of on-chain transactions through the use of off-chain risk management and calculation. This enables practitioners to gain blockchain efficiency while still maintaining enterprise-level risk management.

Taurus, a Swiss digital asset infrastructure service provider, received US $65 million round B financing

On February 14, 2023, Taurus, a financial technology company headquartered in Switzerland, announced that it had obtained a round B financing of US $65 million. Credit Suisse led the investment and Deutsche Bank, Cedar Mundi Ventures and Pictet Group participated in the investment. Taurus is committed to the digitization and tokenization of assets, especially securities. The company issues and manages tokenized assets, and establishes a software solution that allows banks to provide custody and transaction services to customers. The company also established the so-called first tokenized securities regulatory market.

Information link:

https://blog.taurushq.com/taurus-raises-usd-65-million-from-strategic-investors/

Comments: In 2021, Switzerland voted to pass a new law that allows any stock or bond to be officially on paper or through digital tokens, both of which are regarded as proof of assets. Taurus securities market T-DX is regulated by FINMA, the financial market department of the Swiss government.

India's financial technology unicorn PhonePe received another US $100 million in financing, and Tiger Global participated in the investment

Recently, PhonePe, a financial technology unicorn headquartered in India, announced that it had received US $100 million in financing, with the participation of Ribbit Capital, Tiger Global and TVS Capital funds. In January 2023, PhonePe also received US $350 million in financial support, which means that this Indian start-up has received a large amount of US $450 million in financial support in just six weeks. The company said that it would use this financing to continue to promote payment and insurance services in the Indian market in the future, and expand new vertical markets such as loans and stockbrokers.

Information link:

https://www.usnews.com/news/technology/articles/2023-02-14/indian-digital-payments-firm-phonepe-raises-100-million-at-12-billion-valuation

Comment: In October 2022, PhonePe moved its headquarters from Singapore to India. In December 2022, PhonePe and Flipkart completed the separation, and the latter plans to conduct an IPO in the United States this year.

The time series database platform, InfluxData, was funded with US $81 million and participated in the investment

On February 8, 2023, InfluxData, a subsidiary of the time series platform InfluxDB, announced that it had received US $81 million in financing, including US $51 million in E-round financing led by Princeville Capital and Citi Venture Capital, and US $30 million in debt financing from Silicon Valley Bank.

Information link:

https://www.influxdata.com/blog/influxdata-closes-series-e-round-and-raises-81-million/

Comment: InfluxData was founded in 2012 and headquartered in San Francisco, the United States. At present, the cumulative equity financing amount has reached 171 million dollars. Time is an important background for understanding data. Time series data is saved in this context in an available format to predict and determine trends over time. Today, applications, sensors and systems continuously send out time-series data streams, which can provide valuable real-time insights when collecting and analyzing these data streams. The time series market has matured significantly in the past two years. Developers from startups to Fortune 500 companies have begun to move to specially built databases to analyze time-based data in complex systems.

Berkley Re Solutions cooperates with Barton Mutual Insurance

Berkley Re Solutions announced its cooperation with Barton Mutual Insurance Company to launch an unprecedented insurance for individuals and families experiencing traumatic events. This new insurance is designed to address the potential impact of violence on victims.

Information link:

https://www.berkleyre.com/solutions/berkley-re-solutions-partners-with-barton-mutual-insurance-company-to-launch-nations-first-personal-insurance-product-line-for-violent-events/

Comment: Barton Mutual Insurance Company, which provides property and accident insurance throughout Missouri, will become the first company in the country to provide this type of insurance for its individual policyholders as an endorsement of the homeowner's insurance form.

Hyundai announces the subscription plan for Evolve+electric vehicles

Hyundai Motor USA and Hyundai Capital USA jointly launched its new Evolve+electric vehicle subscription service. The new plan will only focus on electric vehicles, which is a monthly subscription service covering 1000 miles, insurance, maintenance, registration and roadside assistance. Kona Electric's subscription service starts at $699 per month and IONIQ 5's subscription service starts at $899 per month. Subscribers can cancel at any time during each subscription period.

Information link:

https://carbuzz.com/news/hyundai-launches-evolve-plus-month-to-month-subscription-service-for-hesitant-ev-buyers

Comment: The user starts the process by downloading the Evolve+application to order the vehicle later, select the terms and pick up the vehicle from the dealer. The plan was launched at dealers in the following cities in the United States: Boulder, Colorado; Westminster, Colorado; Hillsborough, Oregon, etc. It is expected that other dealers in other states will also go online. All 

Evolve+vehicles are equipped with liability, collision and comprehensive insurance provided by Liberty Mutual.

Aon Insurance Aon Launches CyFi

Aon Group announced the launch of CyFi, a brokerage center designed to negotiate and implement network and management liability insurance for small business enterprises. "CyFi combines the market scale of Aon's commercial risk solutions with the technology-driven processes and products of digital customer solutions (DCS) to provide customers with a wide range of insurance coverage, competitive prices and high-quality services." The new brokerage center will provide a full range of network and financial insurance products, which can be customized according to the specific needs of customers. Aon's network and management responsibility risk professional team will help assess risks and develop customized insurance solutions.

Information link:

https://beinsure.com/news/aon-launches-cyfi/

Comments: CyFi's broker team will be used as the resources allocated by the policy, such as network liability, error and omission, director and officer liability, employment behavior liability, trust liability and crime insurance.

The White Paper on the Development of Intellectual Property Insurance in China (2022) was released

On February 8, the Intellectual Property Development Research Center of the State Intellectual Property Office issued the White Paper on the Development of Intellectual Property Insurance in China (2022) (hereinafter referred to as the White Paper). The white paper shows that with the continuous improvement of China's innovation capacity, the gradual prosperity of the capital market and the continuous improvement of the intellectual property system and capacity, China's intellectual property financial services work has emerged and continued to develop. As an important part of China's intellectual property finance, intellectual property insurance provides an effective way to resolve the intellectual property risks of enterprises, and plays an important role in serving the intellectual property protection needs of innovation and market entities, preventing and sharing the intellectual property operation risks, and promoting the construction of intellectual property operation service system.

Information link:

https://finance.sina.com.cn/tech/roll/2023-02-15/doc-imyftyew9046261.shtml

Comment: The white paper points out that China's intellectual property insurance has covered almost all types of intellectual property, including patents, trademarks, copyrights, geographical indications, integrated circuit layout designs, new plant varieties, trade secrets, and covers all aspects of intellectual property creation, protection, and application.

Bank of England issues financial market infrastructure outsourcing and third-party risk management policy

On February 8, 2023, the Bank of England issued the Policy on Financial Market Infrastructure (FMI) Outsourcing and Third Party Risk Management, with the goal of: 1) improving service flexibility and application rate of cloud and other new technologies in accordance with the Bank of England's response to the Financial Future (FoF) Report; 2) Clarify the requirements and expectations of the Bank of England for outsourcing and third-party risk management in FMIs; 3) Supplement the regulatory statement of the Bank of England on the flexibility of FMI operation. This policy is issued in the form of regulatory statements (SSs) and is applicable to central counterparties (CCPs), central securities depositories (CSDs), recognized payment system operators (RPSOs) and designated service providers (SSPs).

Information link:

https://www.weiyangx.com/419046.html

Royal Bank of Canada acquires some businesses of OJO, an AI-driven real estate technology company

On February 8, 2023, Royal Bank of Canada (RBC) announced the acquisition of OJO (Canada), a real estate technology company driven by artificial intelligence (AI). The specific amount was not disclosed. OJO (Canada) is affiliated to OJO Holdings, a real estate technology company in the United States. Through its one-stop platform, it provides users with customized real estate search, on-demand expert consultation, financial support and other services, and optimizes the purchase process in the Canadian market. In 2018, RBCx cooperated with OJO Holdings to test products and services in the Canadian market, which also laid the foundation for this cooperation. In 2021, the two sides launched OJO (Canada) in Canada. In September 2022, RBC announced the merger of its technology banking and innovation department RBCx with RBC Ventures.

Information link:

https://www.retailbankerinternational.com/news/rbc-buys-ojo-canada/

Promote digital identity authentication, and members of the European Parliament voted to support the digital wallet plan

On February 9, 2023, the European Commission on Industry, Research and Energy voted to adopt relevant resolutions, expressing support for the updated European Digital Identity Framework. The Framework document was first proposed in June 2021, hoping to enable EU citizens to conduct online identity identification and authentication through a digital identity wallet, without the help of commercial agency services, giving users full control over their data, and improving the security and privacy of personal data. The document points out that this EU digital wallet is used voluntarily, and the European Parliament wants to ensure that citizens who have not adopted this mechanism will not be discriminated against by services. At present, the document is still awaiting formal approval at the plenary meeting from March 13 to 16, 2023.

Information link:

https://wap.stockstar.com/detail/IG2023021300000714

Cambodia applies to join CIPS, allowing Chinese tourists to use Alipay and WeChat payment in China

China is Cambodia's largest trading partner and also the main source of foreign direct investment and foreign tourists. In order to grasp China's re-opening policy and further attract Chinese investment and tourists, the National Bank of Cambodia applied to join China's RMB Cross-border Payment System (CIPS) and also allowed Chinese tourists to use China's electronic payment service in China. Xie Silei, Assistant President of the National Bank of Cambodia, said at a press conference on February 13 that Cambodia's application for joining CIPS does not mean that it is ready to give up the SWIFT international settlement system led by the United States, but that it needs to have another choice. She pointed out that CIPS currently has more than 1000 members across all continents. Once approved to join the system, Cambodian banks and businesses will have the option to settle with other countries in RMB through CIPS.

Information link:

https://cc-times.com/posts/20624

The Hong Kong Stock Exchange and the Saudi Arabian Stock Exchange will cooperate on financial technology, ESG and other fields

On February 6, 2023, Hong Kong Exchanges and Clearing Limited (HKEx) announced that it had signed a memorandum of cooperation with Saudi Tadawul Group Holding Company to explore cooperation in multiple fields to promote mutual benefit in the financial markets of both sides. According to the memorandum of cooperation, the Hong Kong Stock Exchange and the Saudi Arabian Stock Exchange Group will explore cooperation opportunities in financial technology, ESG, mutual listing and other areas of mutual interest.

Information link:

https://wap.stockstar.com/detail/IG2023020700002972

Last year, the global investment in clean energy exceeded $1 trillion, with China ranking first and the second in the United States

According to the Bloomberg NEF report, the total investment in renewable energy, nuclear energy, zero-emission vehicles or recycling projects in the world will reach 1.1 trillion US dollars in 2022, a year-on-year increase of 31%, which is in line with the total expenditure on fossil fuels. The analysis pointed out that the investment in clean energy technology is at the moment of surpassing fossil fuel expenditure and will not be reversed. According to the report data, China is the world's largest investor in energy transformation, far ahead of the United States, which ranks second. Globally, renewable energy has become the largest investment area, with a total investment of 495 billion US dollars, followed by electrified transportation projects.

Information link:

https://about.bnef.com/

The EU issued a 250 billion euro green industry plan to counter the adverse impact of the US inflation bill

On February 1, 2023, the European Commission formally proposed the Green Deal Industrial Plan. The plan will allocate 250 billion euros (about 1.84 trillion yuan) from existing EU funds for green industrial transformation, and support member countries to accelerate industrial decarbonization, including providing tax relief for enterprises investing in zero-carbon technology. The EU green industry plan includes four pillars: first, to establish a predictable and simplified regulatory system, second, to accelerate the speed of access to funds, third, to improve the skills applicable to green transformation, and fourth, to promote open trade initiatives that contribute to the resilience of the supply chain.

Information link:

https://about.bnef.com/  

The UK Monetary Authority launched consultation on sustainable regulation

On February 10, 2023, the UK Monetary Authority (FCA) issued a consultation document to encourage banks, insurance companies, asset management companies, investment companies and other institutions to discuss the future regulation of sustainable areas. This discussion paper covers the articles of many experts and discusses the governance, incentive measures, capabilities and management arrangements of enterprises related to sustainability from relevant perspectives. FCA hopes that relevant parties will submit comments and feedback before May 10, 2023. This plan is also a part of the FCA's strategic commitment to positive change, aiming to enable stakeholders to start participating in the environmental, social and corporate governance, compensation, incentives and training/certification of regulated enterprises.

Information link:

https://www.weiyangx.com/419077.html

The European Commission officially launched the blockchain supervision sandbox

This week, the European Commission announced that the EU blockchain and distributed ledger technology (DLT) regulatory sandbox was officially launched. This regulatory measure aims to create a pan-European regulatory framework and improve the legal certainty of blockchain projects. It is reported that the operating capital of sandbox comes from the Digital Europe project, and it plans to support up to 20 blockchain projects from the public and private sectors in the next three years. At the same time, an alliance composed of Bird&Bird, OXYGY, WBNoDE, Spindox and other industrial institutions will also provide assistance for the project. It is reported that the regulatory sandbox project is open to all enterprises and public entities in the industry, regardless of whether it is in the stage of concept verification, near the market stage or already in the early stage of operation. The deadline for project application is April 14, 2023.

Information link:

https://www.investopedia.com/terms/d/distributed-ledger-technology-dlt.asp  

The British government launched a consultation on the "buy before pay" regulation

On February 2, 2021, the British government announced its plan to regulate the "buy before pay" (BNPL) industry. In October 2021, the British government began to consult on relevant policy options. On February 14, 2023, the British government said that it was currently negotiating on the proposed draft legislation and planned that the Financial Conduct Authority (FCA) would assume the supervision responsibility of BNPL. According to the draft proposal, FCA will have the right to punish companies that fail to conduct adequate credit checks, ranging from fines to prohibition of further lending. The deadline for this consultation is April 11, 2023.

Information link:

https://www.zhitongcaijing.com/content/detail/741110.html

Australian Securities and Investment Commission: focus on sustainable finance, network security and other fields this year

On February 15, 2023, the Australian Securities and Investment Commission (ASIC) issued an announcement announcing the key direction of law enforcement this year, focusing on sustainable finance and "greenwashing", predatory loans, misleading insurance pricing, network and operational flexibility, and actively protecting consumers from financial losses.

Information link:

https://wap.stockstar.com/detail/IG2023021700002674

The IPO of Xintong Pharmaceuticals with the equity structure of domestic family trust

On January 12, 2023, Xi'an Xintong Pharmaceutical Research Co., Ltd. (hereinafter referred to as "Xintong Pharmaceutical"), through the sixth review meeting of the Science and Technology Innovation Board Listing Committee of Shanghai Stock Exchange in 2023, met the issuance and listing conditions, and confirmed by the Listing Committee that there was no further implementation, and successfully achieved the IPO. According to the prospectus of Xintong Pharmaceutical, Chen Tan Qingfen Family Trust is its indirect shareholder, and finally realizes the investment through a series of overseas company subject levels.

Information link:

https://k.sina.com.cn/article_1668695325_6376451d0010146hh.html

Shanghai Municipal Government issued a document that high-income people belong to key regulatory groups

Recently, the Shanghai Municipal People's Government issued a notice on the issuance of the revised "Implementation Plan for Stimulating the Vitality of Key Groups in Shanghai and Promoting the Income Increase of Urban and Rural Residents", which was implemented on December 14, 2022 and is valid until December 13, 2025. The Plan requires reasonable adjustment of property income. According to the national requirements, actively optimize the personal income tax collection and management system, improve social supporting measures, and establish and improve the sharing mechanism of personal tax-related information. Continuously improve the tax management system for capital and property income, and balance the tax burden level of labor income and capital income. We will further play the role of taxation in regulating income distribution. Actively cooperate with relevant national ministries and commissions to improve policies and optimize collection and management. Strengthen the risk management of personal income tax for high-income people by focusing on key projects, key groups, key industries and key policies. Explore the establishment of a "one-person" natural person tax-related database.

Information link:

https://weibo.com/ttarticle/p/show?id=2309404854482138956146

Filing amount of domestic charitable trust exceeds 5.3 billion yuan

With the continuous improvement of the domestic public welfare system, the development speed of charitable trust is also accelerating, and the number and scale of filing shows a steady growth trend. According to the latest data of Charity China, as of January 30, there were 1201 charitable trusts on record nationwide, with a capital scale of 5.316 billion yuan, involving many fields such as poverty alleviation, helping the elderly, helping the orphans, supporting the army and giving preferential treatment, medical care, health care, rural revitalization, culture and education. It is understood that charitable trust is a legal framework with the purpose of charity, the beneficiaries of unspecified groups of society and the means of trust. Industry insiders generally believe that charitable trust can not only highlight social responsibility, but also the main transformation direction for trust companies to return to their roots, with broad development space.

Information link:

https://finance.sina.com.cn/trust/roll/2023-01-31/doc-imyczekc0182764.shtml

Columbia University opens the Business Analysis and Financial Technology AI Center

On February 13, 2023, Columbia University announced the launch of the Center for Artificial Intelligence in Business Analytics and FinTech. The center is affiliated to the School of Engineering and Applied Sciences (SEAS) and hopes to help the development of the real estate and financial market with the help of advanced data science and artificial intelligence technology (including machine learning and deep learning). The center said that the lack of technological innovation in the real estate sector was mainly due to the following four reasons, including: 1) lack of internal technical expertise; 2) Heavy reliance on off-the-shelf and non-original technologies; 3) Years of exaggerated publicity have led to unrealistic expectations of development and integration technology; 4) The poor return on investment performance brought by more than 100 billion yuan of real estate technology. The center hopes to influence the real estate industry in various ways, including developing open training data sources, directly cooperating with the company to "establish competitive advantage", cultivating engineers with scientific experience in real estate data, or displaying research results to the industry.

Information link:

https://fabulys.org/

Apple began to test the "buy before pay" service in retail stores

Recently, Bloomberg reported that Apple retail store employees have begun to test their "buy before pay" (BNPL) service. It has been reported that this service will be available together with iOS 16.4 software update as early as spring 2023. Apple BNPL service allows Apple Pay users to pay in four installments within six weeks, without additional interest and charges. It is also reported that Apple is also developing another monthly installment service with Goldman Sachs, mainly for large-value transactions with interest. According to data from CFPB, American consumers accumulated a total of 24 billion dollars of BNPL loans in 2021, ten times the amount of the previous year. Apple should be optimistic about the continuous growth prospects of the BNPL market before making the above layout. However, because BNPL's verification is often not as strict as traditional credit cards, there is a higher risk. Lack of understanding of consumers' financial situation means that consumers may carry debts that they cannot repay in the future.

Information link:

https://finance.sina.com.cn/stock/usstock/c/2023-02-08/doc-imyeyait7424213.shtml?r=0

Foreign media: PayPal has suspended its stable currency project

In January 2022, after a programmer found hidden code in PayPal's iPhone application, PayPal first admitted its stable currency development plan. However, Bloomberg recently quoted people familiar with the matter as saying that PayPal has suspended the project at present. Some analysts pointed out that PayPal's move was basically consistent with the timeline of its stable currency partner Paxos Trust's acceptance of the NYDFS investigation. A spokesman confirmed that if the project continues to be promoted, the company will "work closely with regulators".

Information link:

https://www.163.com/dy/article/HTHJFIAE05198086.html

"Sister Wood" annual report: 14 innovation trends with the most exponential growth potential in 2023

Cathie Wood, known as the "female Buffett", is from the famous asset management company Ark Invest, which has released the "Big Ideas" report since 2017. Recently, the 2023 report was officially released. According to the research of ARK Invest, the five innovation platforms are converging, creating an unprecedented growth trajectory. AI is the most important catalyst, and its speed will affect all other technologies. In this business cycle, the market value of disruptive innovation platforms may increase by 40% annually, from $13 trillion today to $200 trillion by 2030. The five innovation platforms and technology catalysts cover the 14 ideas in the 2023 report, including technology integration, artificial intelligence, digital consumption, digital wallet, public blockchain, bitcoin, smart contract network, precise treatment, cancer molecular diagnosis, electric vehicle, autonomous ride, autonomous logistics, robot technology and 3D printing, and orbital space.

Information link:

https://36kr.com/p/2123902375954561

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