Wise (LON: WISE) announced today (Tuesday) that its quarterly cross-border volumes in the three months ended 31 March 2025 jumped by 28 per cent to £39.1 billion, while its customer holdings increased 33 per cent to £21.5 billion.Strong Figures from WiseAnother key metric that improved was the number of active customers on the platform, which crossed 9.3 million—a 17 per cent year-on-year increase. The platform remains focused on personal accounts, with the number of such accounts reaching over 8.8 million, compared to around 453,000 business accounts.However, when it comes to cross-border transaction volume, business accounts contributed £10.7 billion, while personal accounts sent £28.4 billion.“We ended the financial year by taking Wise to even more people and businesses around the world,” said Kristo Käärmann, Co-Founder and CEO of Wise, hinting that the growth was supported by the platform’s launch in Mexico and the introduction of business accounts in Hong Kong.Focus Is on ExpansionApart from customer-related metrics, the London-listed company ended the quarter with an underlying income of £350.4 million, a 13 per cent rise. Although its cross-border take rate dropped by 14 basis points to 0.53 per cent, instant transfers improved to 65 per cent from 62 per cent.Meanwhile, the company's cross-border revenue came in at £208.4 million, a decline of 2 per cent quarter-on-quarter, but a 2 per cent increase year-on-year.“We continue to move closer to achieving money without borders by investing in our long-term growth,” Käärmann added. The company is indeed expanding globally.“We recently launched our popular Interest feature in Australia, helping more customers earn returns by placing their money in funds backed by government-guaranteed assets,” the CEO said. “We also announced the opening of a new hub in Hyderabad to drive growth in India, building on recent office expansions in London, Tallinn and Singapore.” This article was written by Arnab Shome at www.financemagnates.com.

eToro announced today (Tuesday) it will add all securities listed on the Hong Kong Stock Exchange (HKEX) to its platform in a phased rollout, expanding investor access to Chinese and Asian markets.eToro Expands Platform with Addition of All HKEX-Listed SecuritiesThe addition will include all HKEX-listed stocks and exchange-traded products (ETPs), including exchange-traded funds (ETFs) and leveraged and inverse products. Users will also benefit from real-time pricing data provided directly by HKEX."By expanding our offering to include more companies listed on HKEX – one of the world's top ten stock exchanges by market capitalization – we are further strengthening our commitment to making global markets accessible to everyone," said Yossi Brandes, VP of Execution Services at eToro.This expansion follows eToro's February addition of Abu Dhabi Securities Exchange (ADX) stocks to its platform, continuing the company's strategy of broadening market access for its global user base.The move aligns with investor sentiment captured in eToro's latest quarterly Retail Investor Beat survey, which found that over 22% of global investors believe China will generate the strongest returns over the next five years. The survey polled 10,000 retail investors across 12 countries in February and March 2025.Gateway to Chinese Markets"This collaboration will enhance retail investors' access to the Hong Kong market and empower their decision-making with high-quality market data," said Winnie Sin, Head of Data Business, Platform & Market Structure Development at HKEX. "With our unique role as the superconnector between Mainland China and the rest of the world, we are dedicated to enhancing capital market channels, products, and partnerships."HKEX is strategically positioned as a gateway to Chinese markets, offering international investors regulated access to companies in the world's second-largest economy.Moreover, the company launched a new offering for the UK and European users, allowing to earn additional money by lending their stocks.eToro, founded in 2007, now serves over 40 million registered users in 75 countries. It has paused its preparations for an upcoming public listing on Nasdaq and it currently “evaluates market conditions.” This article was written by Damian Chmiel at www.financemagnates.com.

Block Inc., the company behind Cash App, will pay a $40 million penalty and bring in an independent monitor after New York’s top financial regulator found major failures in its anti-money laundering controls. The settlement concludes the final state-level probe into the company’s compliance practices and highlights the growing tension between fast fintech expansion and regulatory oversight.“All financial institutions, whether traditional financial services companies or emerging cryptocurrency platforms, must adhere to rigorous standards that protect consumers and the integrity of the financial system,” said Superintendent Adrienne Harris. Compliance Didn’t Keep Up With GrowthThe New York Department of Financial Services (NYDFS) announced the resolution on Thursday, citing “critical gaps” in Block’s Bank Secrecy Act and anti-money laundering (AML) programs. Regulators said Block failed to vet customers properly, monitor transactions, or manage risk, especially regarding Bitcoin activity on the Cash App.Block, which has held a New York money transmission license since 2013 and a virtual currency license since 2018, saw its Cash App user base and transaction volume surge in recent years. In 2024 alone, Cash App processed $283 billion in inflows and ended the year with 57 million monthly users.However, according to the NYDFS, the company’s compliance systems failed to keep pace with that growth. Inadequate customer due diligence and a lack of risk-based controls created vulnerabilities that criminals exploited.Bitcoin Loopholes and Transaction BacklogsIn one instance, Block’s internal review in 2022 revealed over 8,300 accounts linked to a Russian criminal network operating through Cash App.“The rapid growth of Block’s Cash App, which was absent a robust compliance function, created risk and vulnerabilities that violated the rules that financial services companies operating in New York must adhere to. The Department is taking decisive steps to ensure accountability, including the appointment of an independent monitor to oversee corrective measures.”The regulator was especially critical of how Block handled Bitcoin transactions. The company began supporting Bitcoin on Cash App in 2018, but NYDFS found that transactions were allowed to proceed with minimal scrutiny, often anonymously, due to weak controls.Between 2019 and 2020, Block’s compliance operations became overwhelmed by alert backlogs. Rather than resolving these in a timely fashion, the company allowed them to linger, further undermining its ability to detect illicit activity. Under the consent order, Block must now retain an independent monitor to evaluate and oversee the company’s remedial efforts. This article was written by Jared Kirui at www.financemagnates.com.

eToro announced today (Thursday) the launch of a stock lending program that will allow its users in the UK and Europe to earn passive income by lending their stocks to borrowers. The Israeli fintech is thus following in the footsteps of its competitors in the online retail trading market, including Robinhood, which has been offering similar solutions for some time. 4oPassive Income with eToroThe initiative represents a significant expansion of eToro's existing relationship with BNY, which will act as the custodian for the new offering. Stock lending platform EquiLend will identify potential borrowers and facilitate the lending process."Stock lending has traditionally been the preserve of large financial institutions and it's been much harder for retail investors to earn passive income in this way," said Yossi Brandes, VP Execution Services at eToro. "Leveraging BNY's Global Clearing services, we want to level the playing field by enabling millions of eToro users across the UK and Europe to engage with stock lending in an easy and transparent way."The program will initially be available to higher-tier eToro Club members – those with Platinum, Platinum+ and Diamond status – before being extended to other users at a later date.eToro has been in the spotlight recently due to its planned IPO on Nasdaq under the ticker ETOR. The latest market disruption caused by Donald Trump's tariff announcements has led the company to pause its IPO roadshows as it "evaluates market conditions."How It WorksUsers who choose to participate must opt in, after which their entire portfolio of eligible stock positions will be considered for lending. Only whole unit “real” stock positions qualify. CFDs and fractional shares are excluded.Participating users will receive monthly statements tracking their income when their stocks are successfully loaned out. Securities with low market liquidity, high volatility, and high demand are more likely to be borrowed and generate higher earnings.While stocks are on loan, users temporarily transfer ownership to borrowers and forfeit voting rights. However, they continue to receive dividends and retain the ability to sell their stocks or opt out of the program at any time without incurring costs.How Mach Can You EarnWhile not explicitly detailed in the initial announcement, eToro has provided a formula in its help center for calculating potential earnings."Participants will receive monthly payments, equivalent to 50% of the net revenue eToro earns and receives from our partners for these lending transactions. The actual income from stock lending will likely vary from month to month depending on the market demand for the stock," eToro explains in their FAQ. The final values will depend on which assets are lent, the number of shares, and the variable lending fee, which fluctuates due to market supply and demand.In eToro's example, they indicate that the lending fee rate is 1%, the facilitation and maintenance cost is 15%, and eToro's revenue share is 50% (remember those values are not fixed). The example referenced a relatively substantial investment of 2,000 Tesla shares at a price of $350 each, totaling $700,000. How much does eToro offer for a loan lasting 112 days (nearly 4 months) with this amount? Just over $925.Is that a lot? Considering that the funds are already tied up in stocks, it's certainly a nice bonus and additional "dividend" from owning shares. However, for retail investors with typically much smaller portfolios, the profits will likely be rather symbolic.For comparison, the stock lending program introduced by Swissquote, which has been functioning since 2024, offers an annual interest rate of over 5% for selected, most popular stocks. However, looking at Robinhood's offering, which implemented a similar solution in 2022, the terms are very comparable. The same applies to the Stock Yield Enhancement Program (SYEP) Derivatives introduced by Interactive Brokers in 2023.Therefore, it can be concluded that eToro is not deviating from market averages in this regard. Expanding Financial AccessThrough BNY's Global Clearing platform, eToro's users can access over 19 exchanges globally, with integrated solutions for clearing, custody, settlement, execution, and financing."We are pleased to expand our relationship with eToro, supporting a holistic solution set across clearing, settlement, custody, foreign exchange, cash management,” Victor O'Laughlen, Head of Global Clearing at BNY, commented on the expansion. “This development represents the very best of eToro, Equilend and the heritage and innovation of BNY's world-class platform."eToro is providing educational resources on its platform to help users understand potential income opportunities and risks associated with stock lending. Dan Dougherty, Managing Director, Global Head of Sales & Account Management at EquiLend, noted that the collaboration "marks a significant advancement in the securities lending market," enabling eToro to enhance its services with a fully paid lending program.The European Securities and Markets Authority (ESMA) has issued guidance noting that while securities lending may generate extra returns, it can also introduce additional risks, including counterparty and collateral shortfall risk. The authority unveiled some measures in 2023 to curb securities lending to retail investors.As FinanceMagnates.com informed this week, Shir Shalom, who led various projects related to risk management at eToro, has announced her departure from the financial trading platform after serving nearly four years in various leadership roles. “Forever an eTorian,” she wrote on her socials. This article was written by Damian Chmiel at www.financemagnates.com.

Airwallex, the fintech payments disruptor, is taking on Wall Street and the City of London with plans to acquire banking licenses in the US and UK.Airwallex’s Banking License MoveWhat do you do after conquering Asia-Pacific and building a $5.6 billion valuation? If you’re Airwallex, you go shopping for banking licenses in two of the most heavily regulated markets in the world: the United States and the United Kingdom.? Big moves in the Big Apple – Airwallex New York has a new home in Union Square!With our NYC team tripling over the past year, we’ve officially opened the doors to a new office space designed to grow with us.? From stronger collaboration to bigger ambitions, this next… pic.twitter.com/HUpzxdnIHk— Airwallex (@airwallex) April 3, 2025That’s right. The fast-rising fintech, known for offering cross-border payments, global accounts, and snappy fintech infrastructure, now reportedly wants to become a full-fledged bank—or something very close to it. Airwallex is reportedly preparing to file for banking licenses in both countries as it looks to scale its services, deepen its product suite, and challenge the old guard.Because if you want to swim with the sharks, you might as well show up with a trident.Why the Sudden Interest in Becoming a Bank?Airwallex has spent the past few years building a reputation as an increasingly big part the behind-the-scenes infrastructure that powers global commerce. From helping businesses open foreign currency accounts to facilitating real-time payments across borders, it’s carved out a niche among international SMEs and tech-savvy firms.Singapore-based payments firm Airwallex is reportedly planning to expand into the lending sector by pursuing banking licenses in the US and the UK.https://t.co/OdHh3XOHXB pic.twitter.com/kXOSHGFr0c— The Marketing Eye (@themarketingeye) April 8, 2025But there’s only so far you can go without a banking license.Right now, Airwallex operates under a patchwork of licenses and regulatory partnerships. That means it often has to rely on third-party banks to hold funds or issue cards. A banking license would cut out those middlemen, lower costs, and allow it to offer a broader range of services—like loans, savings, and fully regulated deposits—under its own name.It’s the fintech version of taking the training wheels off. Riskier? Sure. But also a hell of a lot more interesting.The US and UK: A Regulatory Double Black DiamondLet’s be clear: getting a banking license in the US or the UK isn’t like opening a food truck. It’s more like trying to get into Oxford wearing Crocs.The US is famously picky, with regulators like the Office of the Comptroller of the Currency (OCC) and the Federal Reserve scrutinizing everything from capital adequacy to executive haircuts. Meanwhile, the UK’s Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are hardly a walk in the park.Airwallex Reportedly Pursuing US, UK Banking Licenses Read here: https://t.co/0qHfj8OZ6g#fintech #payments #UK #USA @airwallex— Fintech Singapore (@FintechSIN) April 8, 2025Airwallex will need to show deep pockets, robust compliance systems, and a roadmap that doesn’t scream “Silicon Valley pipedream.” But if it pulls it off, the rewards are substantial. A US or UK license would give the company massive credibility—and a seat at the table.Follow the (Global) MoneyThis potential move is less about regulatory masochism and more about global ambition. With a banking license in hand, Airwallex could truly go toe-to-toe with big banks, neobanks, and payment giants alike. Think business loans, treasury services, payroll processing, and full-stack financial platforms—all wrapped up in a sleek fintech bow.While the company hasn’t publicly confirmed the license applications yet, the buzz is loud. This could well be part of a broader strategy to make Airwallex indispensable to businesses navigating an increasingly global economy.It’s also possibly a strategic play ahead of a potential IPO—because nothing says “take us seriously” like the ability to hold deposits and issue credit.Airwallex Adds the Israeli Shekel to Its OfferingsWhile Airwallex plots regulatory world domination, it’s also fine-tuning its product offering. Case in point: the fintech just added Israeli Shekels (ILS) to its multicurrency wallet. Businesses can now collect, hold, and convert ILS alongside 20+ other currencies.“Enabling businesses to receive and hold funds in Israeli Shekels through our Global Accounts is a significant step in simplifying cross-border financial operations,” said Or Liban, VP, Middle East at Airwallex. “Israeli and international companies can now manage ILS transactions and their spend management more efficiently, thanks to Airwallex’s robust financial infrastructure, which ensures local collection and treasury with minimal friction.”It might not grab headlines like a banking license, but it’s a big deal for companies operating in or trading with Israel. More currencies mean more flexibility, fewer conversion fees, and less reliance on traditional banks to do simple things like… get paid.It’s also a sign that while Airwallex is dreaming big, it’s not forgetting the nuts and bolts that made it successful in the first place.Final Thoughts: Betting on BankingAirwallex’s pivot toward becoming a licensed bank is a gamble—but one that could pay off in spades. In a world where every company is trying to become a fintech and every fintech is trying to become a bank, this move feels both inevitable and bold.If successful, it would catapult the company into an elite club of global financial institutions—and potentially redefine how cross-border business banking gets done.Until then, keep your eyes on the license applications—and your wallets in multiple currencies. And in the meantime, keep an eye on our Fintech section. This article was written by Louis Parks at www.financemagnates.com.

Lithuania's central bank has fined Revolut, a British fintech company, 3.5 million euros ($3.83 million) for failures in money-laundering prevention. The fine followed a routine inspection that found issues with Revolut's monitoring of business relationships and operations. These issues led to the company failing to properly identify suspicious transactions, according to the central bank's statement, Reuters reported.Lithuania Issues Record Fine to RevolutRevolut has stated that the investigation did not confirm any money laundering and that the findings were related to improvements in existing controls. The company emphasized its focus on regulatory compliance and has cooperated with the Lithuanian central bank to address the issues.The fine, the largest ever issued by the Lithuanian central bank, reflects the severity of the violations and the revenues of Revolut Holdings Europe, the company’s holding entity for regulated operations in the European Economic Area. Revolut was valued at $45 billion in August and reported a record pretax profit of 438 million pounds ($559.5 million) in 2023.Revolut slapped with €3.5M fine by Lithuania's central bank over money laundering prevention failings https://t.co/evuZ0MMxJi pic.twitter.com/OkSrfGovTt— Tech.eu (@tech_eu) April 8, 2025You may find it interesting at FinanceMagnates.com: Revolut's Evolution—From Fintech Maverick a UK Banking Behemoth?Revolut and Visa Oppose UK’s Proposed Interchange Fee CapRevolut, in collaboration with Visa, is challenging the UK Payment Systems Regulator (PSR) over proposed caps on interchange fees. The companies argue that these caps would harm competition and hinder innovation within the fintech sector. Both firms contend that the PSR's decision is unnecessary and could have negative effects on consumers and businesses. Revolut claims the regulator’s move could force banks to cut rewards programs or introduce new fees to compensate, ultimately impacting consumers. Visa also warns that limiting interchange fee revenue could stifle competition and hinder fintech growth. This article was written by Tareq Sikder at www.financemagnates.com.

The Financial Technologist, published by Harrington Starr, has released its latest edition. It covers topics such as digital assets, financial infrastructure, leadership, and team development. The report also highlights the growing use of artificial intelligence (AI). Despite market volatility and geopolitical uncertainty, demand for productivity-enhancing technology remains strong.Additionally, the 2025 list of the Most Influential Financial Technology Firms was compiled following a high volume of nominations. The firms selected are recognized for their contributions to advancements and changes within the financial technology sector, reflecting their influence on the industry's current and future landscape. Some of the nominated companies include Symphony, Brite, FreedomPay, Payme Swiss, Xceptor, Raisin, CoBa, and Railsr.AI’s Impact on Financial Services and Market Systems ExploredIn the report, Aaron Holmes, CEO & Co-Founder of Kani Payments, pointed out that: “As payment capabilities become integrated into non-financial applications, the reconciliation complexity grows exponentially. Each new integration point creates potential challenges that only automated systems can effectively manage.”AI’s use in financial services is discussed, with a focus on data utilization. Joachim Lauterbach, CEO of valantic FSA, highlighted the importance of automation in this transformation, stating: “Hyperautomation is a crucial element in digital transformation, removing human involvement in low-value, repetitive tasks and providing in-depth, data-led business intelligence.”Kelly Littlepage, Co-Founder & CEO of OCX Group, commented: “The integration of AI agents into market systems won't just optimise existing processes – it will reshape how we conceive of trade itself. From instantaneous multi-asset exchanges to the creation of new marketplaces, AI will unlock economic potential on an unprecedented scale.” This insight reflects the radical changes AI could bring to trading systems.Regulatory Hurdles: The Need for Adaptability in Financial TechnologyA key point raised by Simon Isaev, CEO of Payme Swiss, was the disparity in how different regions are approaching AI in financial services: “While some jurisdictions, such as the USA, Singapore, and the UAE, have been proactive in fostering innovation, other regions, particularly in Europe, have been slower to embrace AI-driven financial solutions due to stringent compliance requirements.” This highlights the challenges many companies face in navigating regulatory environments while trying to innovate.Matt Barrett, CEO & Co-Founder of Adaptive, further emphasized the need for firms to adapt in a rapidly changing market: “To stay competitive, firms are re-thinking their technology estates and strategies with a key focus on differentiation and adaptability. The most prepared firms will be able to leverage technological advancements to their advantage.”Building the Future of FinTech: Diversity, Innovation, and LeadershipAs the FinTech and financial services industry continues to cross significant challenges and growing market dynamics, strong leadership is crucial for success. “As the Fintech and FS industry battled more challenges and changes in the landscape, lots will be needed from leadership for companies to succeed. The real crisis may be companies not thinking they need leaders and even worse, not supporting them,” commented Nadia Edwards-Dashti, Chief Customer Officer, Harrington Starr.The report also notes the ongoing global expansion of FinTech, particularly in regions like the Middle East and the US. It underscores the importance of innovation and leadership in building the future of the industry. Krishna Nadella, Chief Commercial Officer at SigTech, remarked: “The future isn’t something that happens to us—it’s something we build.”The 2025 cohort includes companies that are increasingly focused on diversity, equity, and inclusion (DEI) initiatives. According to the release, these firms are expected to respond to technological and market developments in the coming year. This article was written by Tareq Sikder at www.financemagnates.com.

Shir Shalom, who led various projects related to risk management at eToro, has announced her departure from the financial trading platform after serving nearly four years in various leadership roles. “Forever an eTorian,” she wrote on social media, without revealing what her next career steps would be.Shalom is the second eToro employees to announce their departures in recent weeks, potentially signaling a broader management shift as the company prepares for its long-anticipated public offering.Departs eToro After Three-Year TenureShalom, who joined eToro in October 2021, most recently financial, operational, technology, and model risk management functions at the btoker. During her tenure, she worked closely with Deputy CEO Hedva Ber and Chief Risk Officer Sharon Biran to strengthen the company's risk management framework."After years of doing - executing and building - it's time to say goodbye to eToro," Shalom stated in her announcement. She highlighted her work with Ber, describing her role as "turning vision into action" while serving as the deputy CEO's right hand.Shalom initially joined eToro as Chief of Staff in the Global COO and Deputy CEO Office, where she managed a budget exceeding $30 million and led expense reduction efforts that reportedly decreased yearly costs by $12 million. In 2023, she transitioned to her most recent position heading risk management across multiple domains.In this capacity, Shalom was responsible for developing the company's financial risk management program, managing operational risk across the eToro Group, building the model risk management domain, and leading business continuity planning. Her oversight also extended to information security, cyber, and privacy matters within the Operational Committee.From KPMG and Accenture to eToroBefore joining eToro, Shalom worked at Accenture Israel for over five years, rising to Technology Consulting Manager in the Financial Services Industry. Her previous experience also includes positions at KPMG Israel, where she conducted financial audits and compliance assessments for major financial institutions.During her time at eToro, Shalom also led "Invest with Her," the company's female investor community initiative, and had responsibilities for delivering compliance and risk updates to the board.Shalom decided to leave the company at the moment when eToro chose to suspend its IPO roadshows in response to market turmoil triggered by the trade war and Trump’s tariffs. According to the official statement, the fintech is “evaluating market conditions” but has reportedly not changed its plans to go public in this quarter of 2025.Veteran Marketing ExpertAlso DepartsIn another significant departure, Shiran Herzberg, eToro's Director of Media Partnerships and Head of Marketing for the GCC region, left after more than 13 years with the company. Herzberg joined eToro in 2012, initially working in customer service and affiliate management roles before becoming a key figure in the broker's media buying and partner relations team.During his long tenure, Herzberg played a crucial role in launching the eToro brand in the US market and was instrumental in forming partnerships with established brands including NASDAQ and BlackRock.Industry observers suggest these executive changes may be related to the company's public offering preparations, with some executives potentially looking to cash out stock options that would become liquid after the IPO.Profits and New ProductsIn its most recent filing with the Securities and Exchange Commission (SEC), the Israeli fintech eToro reported earning a total of $931 million in commissions by the end of 2024. This reflects a 45.6% increase compared to the previous year. The breakdown shows that 38% of this amount was generated from cryptocurrency trading, with an equal 38% from equities trading. Commodities accounted for 20% of the total, while currency trading contributed just 4%.Looking back, eToro’s commission revenue was $639 million in 2023 and $632 million in 2022. The final quarter of 2024 proved especially strong, with commissions reaching $303 million, driven largely by Bitcoin exceeding a value of $100,000.Separately, eToro has outlined plans to introduce options trading for users outside the United States later in 2025. The company also intends to roll out additional offerings, such as securities lending, to bolster its recurring revenue streams. This article was written by Damian Chmiel at www.financemagnates.com.

The European Securities and Markets Authority (ESMA) has imposed a €420,000 fine on Modefinance for improperly suggesting the regulator had endorsed its credit rating activities, the EU financial markets watchdog announced Monday.ESMA Fines Modefinance €420,000 for Misleading StatementsThe Italian credit rating agency published statements on its websites between September 2018 and October 2021 claiming ESMA had "certified" or "validated" models used in its scoring and credit rating activities, according to the regulator's findings."Modefinance used ESMA's name to incorrectly suggest ESMA's endorsement of its credit rating activities," said Verena Ross, ESMA Chairwoman. "This could mislead investors and could have an impact on the proper functioning of EU financial markets."ESMA determined the breach of the Credit Rating Agencies Regulation resulted from negligence by Modefinance. The regulator considered both aggravating and mitigating factors in calculating the fine amount and issued a public notice alongside the monetary penalty.The Credit Rating Agencies Regulation explicitly prohibits firms from using ESMA's name in ways that indicate or suggest endorsement or approval of credit ratings or related activities.Recent Regulatory ActionsESMA released detailed guidelines in February 2025 that establish knowledge and competency requirements for staff at crypto-asset service providers, representing an important development in the professionalization of the crypto industry under the MiCA regulatory framework. The consultation document outlines minimum qualification standards and ongoing professional development obligations for employees who provide crypto-asset information and advice to clients.In a separate initiative, ESMA has developed a strategy to transition from the current T+2 settlement cycle to T+1 by 2027, effectively reducing the settlement timeframe by 50%. This planned change aims to boost market efficiency, mitigate risks, and bring EU practices in line with global standards, ultimately enhancing the efficiency of post-trade processes across European markets.According to ESMA's annual analysis examining data from 386 firms across 30 EU and EEA jurisdictions, Cyprus hosts 20% of all firms providing cross-border investment services in the region. This concentration substantially exceeds other financial centers, with Luxembourg and Germany following at 15% and 14% respectively. The distribution of retail clients, however, shows a different pattern, with Germany leading at approximately 1.63 million retail clients receiving cross-border investment services, representing about 20% of the 8 million total clients identified in the study. This article was written by Damian Chmiel at www.financemagnates.com.

eToro has paused its preparations for an upcoming public listing on Nasdaq as President Donald Trump’s reciprocal tariffs wiped out $6.6 trillion in two sessions, Bloomberg and Axios reported. However, according to industry sources, the company has not altered its plans to go public in Q2 this year. Instead, it will continue to evaluate market conditions given the recent market volatility.Volatility Sparks IPO ConcernsPresident Trump’s tariffs last week caused major disruption to the global stock market. While the S&P 500 had been trading at an all-time high last February, the index lost almost 10.5 per cent in the last two trading sessions, Thursday and Friday. Robinhood, seen as a close competitor to eToro, lost about 23 per cent of its value since Wednesday.First 100 Days: How the last 4 U.S. presidents moved the S&P 500. pic.twitter.com/1Newur6lMm— Clash Report (@clashreport) April 4, 2025eToro, headquartered in Israel, filed its F-1 prospectus with the Securities and Exchange Commission (SEC) last week as it prepares to list its shares on Nasdaq under the ticker ETOR.Although eToro did not disclose the valuation it is seeking with the IPO, Globes reported that the company is looking to raise $300–400 million at a pre-money valuation of $4.5 billion. It has already met with several investors in recent weeks, with strong interest in the offering.This is not eToro’s first attempt to go public. In 2021, the company planned a $10.4 billion SPAC merger but dropped the plan, reportedly due to “challenging market conditions.” It later raised $250 million in 2023 at a reduced valuation of $3.5 billion.A Europe-Centric PlatformIn its IPO prospectus, the Israeli company revealed that it collected a total commission of $931 million by the end of 2024, a yearly increase of 45.6 per cent. Of this, 38 per cent came from cryptocurrency trading. Net profit also rose sharply to $192 million in 2024, compared to $15.3 million in 2023 and a loss of $21 million in 2022.Interestingly, 70 per cent of funded client accounts on eToro are based in Europe and the UK, while 16 per cent are in the Asia-Pacific region. The share of American accounts on the platform stands at only 10 per cent. This article was written by Arnab Shome at www.financemagnates.com.

eToro expanded its staking offerings by adding Polkadot (DOT) and Cosmos (ATOM) to its crypto staking program, promising users new opportunities to earn passive income. According to the company's announcement, the platform's staking portfolio now includes popular assets like Solana, Ethereum, and Cardano.eToro’s latest addition comes amid heightened market volatility caused by the recent trade tariffs announced by Donald Trump. At the time of this publication, Polkadot (DOT) ranked #20 on CoinMarketCap with a market valuation of $6 billion, which has been down 6% in the past.On the other hand, Cosmos is down 2% and 9% in the past day and week, respectively. The blockchain, which promised to simplify blockchain technology, ranks#47 with a market cap of $1.6 billion. The Growing Appeal of Crypto Staking"With growing interest in crypto, we remain committed to providing users with more opportunities to engage with digital assets and participate in the blockchain ecosystem," Adi Lasker Gattegno, Director of Crypto Desk at eToro, said."Following the successful launch of NEAR and POL staking on eToro in December, we're excited to offer staking for two more assets, allowing users to earn passive rewards easily and securely."eToro's decision to incorporate Polkadot and Cosmos into its staking options comes as demand for blockchain participation grows. The platform has been proactive in adding new assets for users, with recent additions including NEAR Protocol and Polygon. The staking process allows users to lock their crypto assets, supporting network operations such as transaction validation in exchange for rewards.How Staking Rewards WorkThe staking rewards are structured based on the user's eToro Club tier, with eligible users earning between 45% and 90% of the staking yield. eToro retains a percentage to cover the operational and technical costs involved in securing the staking process. This system is designed to offer users both flexibility and security.To participate, users must reside in regions where staking is permitted, and positions must be held for a specific duration of 'intro days' to qualify. Staking rewards will be updated monthly via email to give users transparency about their earnings, the company explained,Last month, eToro announced plans to launch options trading for its non-United States users later this year. Besides that, the fintech giant also targets to to introduce new services, including securities lending, to boost the existing recurring revenue sources. “We also plan to expand existing recurring revenue sources, such as staking, and introduce new sources such as securities lending, subscription services, new asset classes, geographies, and products,” it mentioned in the F-1 prospectus filed with the Securities and Exchange Commission (SEC). This article was written by Jared Kirui at www.financemagnates.com.

Building on the significant popularity of its March edition, Finance Magnates Intelligence is excited to announce the release of the April 2025 Compliance Report. This report offers financial professionals the latest insights on regulatory shifts and industry trends.This month's report covers essential updates, including:Updates from the Financial Action Task Force (FATF): The FATF has changed its AML and CTF guidelines. Our report gives a detailed look at these updates and provides advice on how firms can adjust their strategies to meet these new standards.Changes at the SEC during Trump’s Second Term: With changes leaning towards fewer regulations and less strict enforcement, our report explains what this means for brokerages, crypto firms, and payment providers and how they can prepare.The report also looks at proposed changes from the Dubai Financial Services Authority (DFSA) regarding capital requirements, which affect brokers and investment firms differently.The April 2025 Compliance Report, with advice from experts, strategic recommendations, and a broad view of the industry, helps readers handle these changes confidently. Finance Magnates Intelligence continues to provide the knowledge and tools needed for firms to use regulations to their advantage, ensuring they stay flexible, compliant, and competitive.Who Should Read This Report? The Finance Magnates Compliance report is perfect for anyone seeking to stay updated on regulatory changes and address compliance challenges effectively.Compliance Teams: Confidently manage complex regulations.Legal Advisors: Keep up with changes in laws and regulations.Business Leaders: Make precise, informed decisions based on the latest data.GET YOUR FREE APRIL COMPLIANCE REPORTWhy This Compliance Report is EssentialCompliance is more than just ticking a box—it's crucial for business survival. Regulators worldwide are increasing their oversight, and failing to comply could result in heavy fines, damage to your reputation, or even being barred from the market.Access the 2nd edition of the Finance Magnates Compliance Report for FREE to stay informed and compliant. This article was written by Finance Magnates Staff at www.financemagnates.com.

eToro’s Q2 2025 investment outlook highlights shifting market dynamics and investment trends, examining changes across asset classes, economic policy uncertainty, and movements beyond mega-cap stocks.Global Market Shifts: China and Gold Lead the WayA key takeaway is that market movements have been varied, with no single trend dominating. Investors have adjusted their portfolios across sectors and regions. Notably, China has stood out, driven by Beijing’s stimulus efforts and a boost in consumer and technology stocks. Similarly, gold has benefitted from a weaker U.S. dollar, geopolitical uncertainty, and demand for safe-haven assets.In Europe, equities have performed well, supported by lower inflation and investor-friendly policies, especially in financial and industrial sectors. In contrast, U.S. markets have shown weakness, with the S&P 500 dropping by about 2% and the Nasdaq falling roughly 6%. Tech stocks, particularly the “Magnificent 7,” saw an even sharper 11% drop as investors rotated away from high-valuation companies.Selective Investment Strategy Amid Market UncertaintyA recent 6% pullback in the market was attributed to profit-taking after a strong rally, delayed central bank rate cuts, and U.S. policy uncertainties. Analysts expect key factors such as earnings reports, mid-year rate cuts by central banks, and potential trade policy risks to influence the market further.Performance has varied across sectors, prompting analysts to recommend a selective investment approach. Semiconductor stocks remain strong, fueled by demand for AI infrastructure, while consumer tech stocks have struggled. The sentiment in AI stocks has shifted from speculative hype to prioritizing profitability. Commodities and European and Chinese equities are drawing investor interest, while cryptocurrencies face a decline in confidence.Inflation and Policy Uncertainty: Shifting Investment StrategiesEconomic policy uncertainty remains a persistent concern, amplified by global events such as the COVID-19 pandemic and shifts in trade policies. Current U.S. tariff concerns have added to market instability, as markets tend to favor more predictable policies. While inflation remains a concern, easing fears of rising wages driving inflation have calmed some nerves. Mild inflation may support equities, but a sharp increase could prompt central bank action. Investors are increasingly moving away from dominant tech stocks, opting for defensive sectors and mid-sized firms..@CathieDWood just presented this slide in @Abundance360's 2025 summit. We're talking about disruptive innovation driving nearly 38% of the market by 2030, while those that resist change will shrink under the weight of technological deflation. pic.twitter.com/VuJoezL37c— Peter H. Diamandis, MD (@PeterDiamandis) March 10, 2025China’s AI and Biotech Sectors Gain AttentionChina’s AI and biotech sectors are gaining attention, with Chinese biotech firms making strides in pharmaceuticals, including outperforming Merck’s Keytruda in a lung cancer trial. Analysts suggest a diversified investment strategy to manage market uncertainty. Despite a 20-25% drop in major tech stocks, some see it as a buying opportunity, while others favor a balanced approach that combines mega-cap stocks and emerging markets. Dividend-paying stocks remain attractive for long-term investment, and while volatile, cryptocurrency continues to serve as a portfolio diversifier.Risks and Recommendations for Q2 2025Risks remain, especially in China’s AI and biotech sectors due to regulatory concerns, as well as in industries like industrials, autos, retail, and tech, which are vulnerable to tariff impacts. The Q2 2025 outlook presents a complex investment landscape: Europe and China are showing strength, while U.S. tech stocks face challenges. Analysts recommend a selective, diversified strategy for investors navigating these uncertainties. This article was written by Tareq Sikder at www.financemagnates.com.

OpenAI is set to raise up to $40 billion in a landmark funding round led by SoftBank Group, valuing the artificial intelligence company behind ChatGPT at $300 billion, nearly doubling its previous valuation.OpenAI Secures $40 Billion Investment Led by SoftBank at $300 Billion ValuationThe Japanese investment giant has committed to providing $10 billion in mid-April, with an additional $30 billion planned for December. The December investment is contingent upon OpenAI successfully transitioning to a for-profit structure by year-end.“OpenAI has very ambitious plans on many fronts and needs a lot of capital to achieve these goals,” industry analyst Gil Luria of D.A. Davidson & Co. commented for Reuters.SoftBank intends to syndicate $10 billion of its total investment to other investors. The remaining funding is expected to come from existing backers including Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital.If OpenAI fails to complete its planned restructuring, SoftBank's total investment will be reduced to $20 billion.Expanding AI CapabilitiesThe San Francisco-based AI developer plans to use the massive capital infusion to advance its research initiatives, expand computational infrastructure, and enhance its suite of AI tools. OpenAI highlighted its goal to deliver increasingly powerful capabilities to the 500 million people who currently use ChatGPT on a weekly basis.The funding comes amid surging investor enthusiasm for artificial intelligence technologies, driven by the widespread adoption of chatbots and the emergence of sophisticated AI agents across industries. Enterprises have increasingly integrated AI solutions to streamline operations and improve customer experiences.You may also like: Italy Hits OpenAI with €15M Fine, Mandates AI Education CampaignCorporate RestructuringAs part of its growth strategy, OpenAI announced plans to establish a public benefit corporation structure. This new framework aims to attract additional investment while balancing shareholder interests with broader public benefits.The company is also partnering with SoftBank and Oracle on the ambitious $500 billion Stargate project, which will establish a network of data centers designed to power AI workloads across the United States.Valuation MilestoneThe new funding round, which follows a $6.6 billion raise in October that valued OpenAI at $157 billion, propels the AI developer into the ranks of the world's most valuable private companies. This exclusive club includes Elon Musk's SpaceX, China's ByteDance, and payment processor Stripe.SoftBank plans to finance its initial $10 billion investment through borrowings from Mizuho Bank and other financial institutions, with legal advice provided by Morrison Foerster.Nvidia: 2. OpenAI gets $300 billion valuation which a huge part is dependent upon getting more next gen Nvidia chips— Jim Cramer (@jimcramer) April 1, 2025Musk's Failed OpenAI Takeover BidIn February, Elon Musk led an ambitious $97.4 billion takeover attempt of OpenAI. Altman promptly rejected the unsolicited offer, responding with a cheeky counter-proposal to purchase Musk's X platform for $9.74 billion instead.The rejection underscores the intensifying conflict between the two tech titans. Musk, who co-founded OpenAI in 2015 but departed following governance disagreements, has repeatedly criticized the organization for abandoning its original nonprofit mission. Meanwhile, Altman maintains that transitioning to a for-profit structure is essential for securing the massive capital needed to advance AI research and development.Shortly after his OpenAI acquisition attempt failed, Musk's AI company xAI unveiled Grok-3, a significant upgrade to its chatbot platform. The new model, which xAI claims was trained with ten times more computing power than its predecessor, features enhanced reasoning capabilities and a new “DeepSearch” function designed to compete directly with ChatGPT. According to xAI, Grok-3 outperforms rival models in mathematical reasoning and complex problem-solving benchmarks. This article was written by Damian Chmiel at www.financemagnates.com.