DeFi Uncovered: Navigating the Shadows of Decentralized Finance

Link: https://www.analyticsinsight.net/defi/the-dark-side-of-defi-hidden-risks-for-investors

Source: https://www.analyticsinsight.net

The post The dark side of DeFi: Hidden risks for investors appeared first on Fintech News.

Link: https://www.analyticsinsight.net/cryptocurrency-analytics-insight/solana-has-emerged-at-the-cutting-edge-of-blockchain-innovation?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

The post Solana has emerged at the cutting edge of Blockchain innovation appeared first on Fintech News.

Discover how generative AI is revolutionizing the financial industry by enhancing fraud detection

Link: https://www.analyticsinsight.net/generative-ai/how-generative-ai-is-transforming-financial-industry?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

The post How Generative AI is transforming financial industry appeared first on Fintech News.

Link: https://www.thecoinrepublic.com/2024/12/19/is-bitcoin-the-greatest-wealth-generator-of-our-time/?utm_source=pocket_saves

Source: https://www.thecoinrepublic.com

The post Is Bitcoin the greatest wealth generator of our time? appeared first on Fintech News.

For decades, finance functions and treasury teams stared down tedious, manual and repetitive workflows.

But today’s financial landscape is in constant motion. Rising regulatory pressures, unpredictable global economic conditions and evolving business models mean finance teams face new, more complex challenges. Traditional tools and manual processes are quickly and increasingly proving insufficient to keep up with the demands of real-time reporting, fraud prevention and strategic decision-making.

Enter artificial intelligence (AI) and blockchain: two technologies that are rapidly evolving, and in blockchain’s sense maturing, to meet the growing demands of finance teams and treasury functions across industries.

For finance teams, AI is more than just a buzzword — it’s an operational game-changer. By enabling automation and data-driven insights, AI systems and applications within accounts payable (AP) and accounts receivable (AR) workflows helps allow CFOs and treasurers to focus on high-level strategies instead of drowning in spreadsheets and manual reconciliations.

While AI drives automation and analytics, blockchain brings a critical layer of trust and transparency to finance operations. At the same time, digital assets like stablecoins can increasingly offer treasury teams the capability to optimize cross-border payments and provide alternative payment solutions, such as for complex commercial transactions or within regions with less stable fiat currencies.

Together, these two buzzy technologies are working to prove their mettle as strategic enablers of growth, efficiency and control in an increasingly complex financial world.

Unlocking Strategic Advantages for Finance Teams

With the news that RLUSD, the USD-pegged stablecoin launched by Ripple, has received approval from the New York State Department of Financial Services (NYDFS) and Tuesday (Dec. 17) becomes available for use, the applications of blockchain-based treasury innovations are top of mind for finance teams looking toward a more efficient and transparent financial future.

By combining the stability of traditional currencies with the accessibility and borderless nature of blockchain networks, stablecoins represent a transactional bridge between traditional methods and newer processes.

After all, throughout history enterprises have been bringing in computers to drive productivity. Blockchain and AI are just the latest iteration of the computational processes and systems long relied upon to drive operational leverage.

“In five years, we might have a blockchain or state-machine capability where financial institutions involved in a transaction can look at that common state and use it as a source of truth to update their own balance sheets,” Tony McLaughlin, emerging payments at Citi Services, told PYMNTS.

Last month, Mastercard’s Multi-Token Network (MTN) connected to J.P. Morgan’s Kinexys Digital Payments to streamline cross-border B2B transactions.

Of course, regulatory clarity sits at the center of the convergence of crypto and traditional finance functions.

Read more: 3 Ways AI Moves B2B Tech From Reactionary to Anticipatory

How AI Is Giving Back Office Operations a Boost

Ultimately, as blockchain and AI reshape financial and payments processes, the role of finance leaders is evolving as well.

“The middle to back office, they’re no longer just a cost center. They’re a value-added partner for everybody within the business,” Meghan Oakes, vice president of customer success at FIS, told PYMNTS. “There are many different aspects of that middle to back office that are now at the forefront of how companies operate …Right now, 20% to 40% of businesses have just started to touch AI. It’s going to accelerate and become table stakes.”

With the news that Google on Friday (Dec. 13) unveiled a platform that provides artificial intelligence agents and AI-powered search to enterprises, the technology’s capacity as a change agent within finance teams is just beginning.

“Many treasurers are thinking, ‘Well, how can I extract that last ounce of juice from my financial ecosystem?’” Ambrish Bansal, global head of liquidity and cash concentration products for the Citi Treasury and Trade Solutions business, told PYMNTS.

AI helps eliminate human error and subjectivity in financial planning. By analyzing both structured data (like P&L statements) and unstructured data (market reports, news), AI models can work to deliver accurate forecasts, helping businesses plan for growth or downturns with confidence.

Among the innovations shared by experts in “Outlook 2030: How Platforms and Networks Will Power the Future of Business Payments,” a PYMNTS eBook, five AI-driven advances stood out: cash flow forecasting, the automation of repetitive tasks, smarter fraud prevention, personalized experiences and unlocking data for richer insights.

As the PYMNTS Intelligence report “60 CFOs Can’t Be Wrong … AI Can Help Accounts Payable” reveals, the effective and responsible integration of AI into financial workflows is just beginning. And the future is bright.

Link: https://www.pymnts.com/news/b2b-payments/2024/why-ai-and-blockchain-are-becoming-finance-leaders-greatest-allies/

Source: https://www.pymnts.com

The post Blockchain and AI: The dynamic duo shaking up Treasury teams appeared first on Fintech News.

Despite upgrades, such as Dencun, activity has shifted from the main Ethereum network to its layer 2’s, which is detrimental to the blockchain’s growth, the report said. The network’s latest upgrade, Pectra, is likely to happen in early April.

“Competitive pressures have led some decentralized applications (dapps) to migrate from Ethereum to other application-specific chains for better performance,” analysts led by Nikolaos Panigirtzoglou wrote.

Examples include decentralized exchanges (DEXs) such as Uniswap, dYdX and Hyperliquid, the bank said.

Uniswap’s upcoming move to Unichain is important because it is one of Ethereum’s “largest gas consuming protocols,” and its migration could result in a significant loss to the network’s fee pool, the bank noted.

JPMorgan said this trend of dapps moving to other layer 2s or alternative layer 1s could negatively impact Ethereum by lessening activity on the main network, which could result in lower transaction fees and validator revenue.

Layers 2s are separate blockchains built on top of layer 1s, or the base layer, that reduce bottlenecks with scaling and data. In terms of supply, this could make ether inflationary as “fewer transactions imply reduced token burning,” the authors wrote.

The bank noted that Ethereum’s growth is behind that of competitors such as Solana, which saw a surge in activity linked to memecoins.

The Ethereum ecosystem still dominates the stablecoin, decentralized finance (DeFi) and tokenization spaces in spite of these challenges, the bank said.

The network could see increased institutional demand from tokenization enterprises but “competition from other networks is likely to remain intense in the foreseeable future,” the report added.

Link: https://www.coindesk.com/markets/2025/02/07/ethereum-faces-intense-competition-from-other-networks-jpmorgan?utm_source=pocket_shared

Source: https://www.coindesk.com

The post Ethereum faces ‘intense’ competition from other networks: JPMorgan appeared first on Fintech News.

Link: https://www.analyticsinsight.net/cryptocurrency-analytics-insight/what-could-be-the-next-breakthrough-cryptocurrency-top-picks-for-2025

Source: https://www.analyticsinsight.net

The post What could be the next breakthrough Cryptocurrency? Top picks for 2025 appeared first on Fintech News.

Blockchain is entering its institutional era. And the enterprise treasury function is all eyes and ears to the innovation.

For example, news came this week that enterprise software maker MicroStrategy, whose business mission includes buying bitcoin, sold 13.6 million shares, tapping the public markets explicitly in order to fund further purchases of the nominal digital asset.

Per a U.S. Securities and Exchange Commission filing on Monday (Nov. 18), MicroStrategy acquired about 51,780 bitcoin at a cost of around $4.6 billion between Nov. 11 and Nov. 17.

MicroStrategy also announced on Monday that it will be offering another $1.75 billion of its 0% convertible senior notes due 2029 for sale in order to fund the purchase of more bitcoin.

The company currently holds around $30 billion in bitcoin on its balance sheet.

While November must have been an exciting time for MicroStrategy’s treasury team, and the headlines harken back to actions taken by firms like Tesla and Block with their own digital asset-heavy balance sheets, today’s treasurers and finance leaders are separately finding out for themselves that blockchain technology holds several key applications across corporate finance as a technology — and not just an asset class.

With real-time transparency, reduced costs and streamlined operations, blockchain is reshaping traditional treasury practices. For corporate treasurers navigating a global economy defined by uncertainty and complexity, blockchain technology offers a compelling promise: a transformation of the treasury function from a cost center to a strategic enabler.

Blockchain’s Key Applications in Corporate Finance

Five of the most promising uses of blockchain within corporate finance include streamlining cross-border transactions, providing real-time liquidity and cash flow management, innovating trade finance and supply chain financing, as well as optimizing risk management, such as by way of tokenizing real-world assets.

The traditional system of cross-border payments — laden with inefficiencies, high fees, and multi-day delays — has long been a sore spot for corporate treasurers. Transactions often traverse a labyrinth of correspondent banks, each adding costs and time to the process. Blockchain technology disrupts this paradigm by enabling instantaneous settlements.

“Blockchain technology, and public blockchains in particular, are opening up a number of new use cases, one of which is to transfer value … from one country to another,” Raj Dhamodharan, EVP blockchain and digital assets at Mastercard, told PYMNTS.

When it comes to cash flow, managing liquidity across a web of subsidiaries, bank accounts and currencies has traditionally required a blend of guesswork and delayed reporting from the finance function. Blockchain changes the game by providing treasurers with real-time visibility into cash positions across the organization and allowing them to make more precise funding and investment decisions.

“In five years, we might have a blockchain or state-machine capability where financial institutions involved in a transaction can look at that common state and use it as a source of truth to update their own balance sheets,” Tony McLaughlin, emerging payments at Citi Services, told PYMNTS.

With instantaneous updates on balances and movements, treasurers can make more precise funding and investment decisions. Blockchain-based platforms also enable predictive analytics for liquidity needs, allowing firms to optimize working capital while minimizing idle cash.

Looking Ahead to an On-Chain Financial Future

While blockchain is no silver bullet, its applications in treasury management offer a glimpse of a more efficient and transparent financial future.

Trade finance, a linchpin of global commerce, is notoriously complex. Issuing letters of credit, managing compliance, and resolving disputes often involve reams of paperwork and significant delays. Blockchain helps digitize and simplify these processes.

Within supply chain financing, which has traditionally favored large buyers with strong credit ratings, blockchain can address traditional imbalances through dynamic discounting and invoice factoring, powered by tokenized transactions.

And in an increasingly volatile global economy, risk management is a top priority for treasurers. Blockchain enhances hedging strategies by enabling the creation and tracking of tokenized assets — digital representations of commodities or currencies. For example, a token representing a barrel of oil or a foreign currency can be tracked and traded in real time, giving treasurers unprecedented control over their hedges.

“The largest financial institutions are eager to explore tokenized assets,” Nikola Plecas, head of commercialization at Visa Crypto, told PYMNTS, but noted that they require regulatory certainty to do so at scale.

After all, while blockchain’s potential is clear in a sandbox environment, several key hurdles to its widespread adoption must be addressed. While regulatory uncertainty is chief among them, interoperability and technical complexity are also important challenges to consider.

But the marketplace is marching onward. And forward-thinking treasury teams must keep up.

Last month, Visa debuted its Visa Tokenized Asset Platform (VTAP), which allows banking partners “to create and experiment with their own fiat-backed tokens in a VTAP sandbox.” In an initial use case, the platform enabled the issuance, transfer and redemption of a bank token on a blockchain, along with interactions of the token with smart contracts.

Last week, Tether launched its own RWA tokenization platform, dubbed Hadron, which lets users “tokenize anything, anywhere,” including everything from stocks to loyalty points.

In March, BlackRock unveiled its first tokenized fund issued on a public blockchain, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The company said last week that it expanded the offering, “by enabling BUIDL to be used within leading blockchain-based financial products and infrastructure across ecosystems.”

Link: https://www.pymnts.com/blockchain/2024/how-blockchain-tech-can-streamline-treasury-operations/

Source: https://www.pymnts.com

The post How Blockchain tech can streamline treasury operations appeared first on Fintech News.

Link: https://www.coindesk.com/opinion/2024/09/04/how-ethereum-20-can-transform-defi/

Source: https://www.coindesk.com

The post Escaping the casino: How tokenized assets will save DeFi from itself appeared first on Fintech News.

In recent years, the digital landscape has experienced a significant transformation, particularly in the realm of financial transactions. Among the most groundbreaking developments is the emergence and adoption of cryptocurrency, a digital or virtual form of currency that uses cryptography for security. This innovation has not only redefined the concept of money but has also opened new avenues for businesses looking to stay ahead in the competitive market.

The aim of this article is to delve into the myriad benefits that cryptocurrencies offer to businesses, particularly focusing on why accepting crypto payments is becoming an indispensable strategy for future-proofing operations. From enhancing transaction efficiency to tapping into new customer bases, the shift towards crypto payments promises to unlock a new dimension of commercial opportunities. As we explore the advantages and practical considerations of integrating cryptocurrency into business models, it becomes evident that the future of financial transactions is digital, and embracing crypto payments is no longer a matter of if, but when.

Understanding Crypto Payments

Cryptocurrency, at its core, is a decentralized digital or virtual currency that employs cryptography for secure financial transactions. Unlike traditional currencies, cryptocurrencies operate on a technology called blockchain, a distributed ledger enforced by a disparate network of computers. This technology not only ensures the integrity and security of transaction data but also eliminates the need for centralized intermediaries, such as banks, thereby streamlining transactions and reducing costs. Since the introduction of Bitcoin in 2009, the first and most well-known cryptocurrency, the crypto market has expanded rapidly, giving rise to thousands of other digital currencies, including Ethereum, Ripple, and Litecoin, among others.

The concept of crypto payments refers to the process of using cryptocurrencies to exchange goods and services. Over the past few years, this form of payment has gained significant traction among both consumers and businesses, driven by its potential to offer more efficient, secure, and cost-effective transaction solutions compared to traditional payment methods. Today, a growing number of businesses across various industries are exploring the integration of crypto payments into their operations, recognizing the strategic benefits it brings in accessing new markets, enhancing customer experience, and fostering innovation.

Benefits of Accepting Crypto Payments

Lower Transaction Fees

One of the most compelling reasons for businesses to adopt cryptocurrency payments is the potential for lower transaction fees compared to traditional payment methods. Credit card companies and online payment platforms typically charge between 2% to 3% per transaction, which can significantly erode profit margins, especially for small to medium-sized enterprises (SMEs). In contrast, crypto transactions, by virtue of bypassing traditional banking channels and intermediaries, can reduce transaction costs to a fraction of that, sometimes as low as 1% or even less for certain transactions. This cost-effectiveness can provide businesses with a competitive edge, allowing them to offer better prices to customers or improve their bottom line.

Access to New Customer Segments

Accepting crypto payments opens doors to a growing demographic of tech-savvy and privacy-conscious consumers who prefer using digital currencies for their transactions. This customer base is not only expanding rapidly as the adoption of cryptocurrencies grows but also tends to have a higher disposable income. Catering to the crypto community can thus significantly enhance a business’s market reach and brand loyalty. Moreover, by positioning your business as a crypto-friendly entity, you can tap into a global audience unrestricted by geographical boundaries or currency conversion limitations. This access to a broader, more diverse customer base can be particularly beneficial for niche markets and online businesses looking to expand their presence internationally.

Benefits of Accepting Crypto Payments

Improved Payment Security

Cryptocurrency transactions are secured by blockchain technology, which significantly reduces the risk of fraud and unauthorized transactions. Each transaction is recorded on a public ledger, ensuring transparency while maintaining the anonymity of the parties involved. This level of security is particularly appealing to businesses that are susceptible to chargebacks and fraudulent payments. To accept crypto payments, you need to know how to mitigate the risk of disputes and chargebacks that are common with traditional payment methods. This not only protects the business’s revenue but also reduces the administrative burden associated with managing these issues.

Faster International Transactions

For businesses operating on a global scale, the speed of transactions is crucial. Traditional international transactions can be slow and fraught with fees due to the involvement of multiple intermediaries. Crypto payments, on the other hand, streamline the process by enabling direct transactions between parties, irrespective of their geographical locations. This can significantly reduce the time it takes for funds to be transferred from several days to a matter of minutes or hours, enhancing operational efficiency and customer satisfaction. Moreover, the elimination of exchange rate complications and cross-border fees makes crypto payments an ideal solution for businesses looking to expand their international footprint.

Enhanced Privacy for Customers

Privacy-conscious consumers increasingly seek payment options that protect their identity and financial information. Cryptocurrencies offer a high degree of anonymity, as transactions do not require personal information to be disclosed, unlike traditional credit card or bank transactions. This aspect of crypto payments can attract customers who prioritize privacy and wish to keep their financial transactions discreet. Offering crypto payments can, therefore, be a strong selling point, enhancing customer trust and loyalty by respecting their desire for privacy.

Innovative Brand Image

Adopting crypto payments is not just a financial decision; it’s also a strategic move that positions your business as a forward-thinking and innovative player in your industry. This can significantly enhance your brand’s image, especially among younger, digitally native demographics who value technological advancement and digital inclusivity. Being an early adopter of blockchain technology and cryptocurrencies can set you apart from competitors, signaling to your customers and stakeholders that you are committed to embracing future technologies and staying ahead of the curve.

Conclusion and Future Outlook

Embracing crypto payments offers businesses a unique opportunity to lower transaction costs, access new markets, enhance transaction security, and project an image of innovation. As the digital economy continues to evolve, integrating crypto payments into your business model is not just a strategic move—it’s a leap towards future-proofing your operations.

Link: https://bigdataanalyticsnews.com/why-your-business-should-accept-crypto-payments/?utm_source=pocket_saves

Source: https://bigdataanalyticsnews.com

The post Why your business should accept Crypto payments appeared first on Fintech News.