Do consumers care about decentralization? (TWIF 11/21)

Hello Fintech Friends,

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I'm just getting back from Fintech NerdCon, where I got to enjoy two days of packed programming built for fintech builders. I had a great conversation with Nubank co-founder Cristina Junqueira on their US strategy, their use of AI, and what role stablecoins will play for the bank. We'll share the full recording soon.

On the topic of banks and stablecoins, I've found myself wondering more and more about the role for tokenized deposits. To start, there is no real definition today for "tokenized deposit," and different bank implementations will likely look different – transaction size limits, KYC requirements, walled gardens vs. partner gardens, etc. But banks from J.P. Morgan to HSBC to UBS are all working on them.

Stablecoins have many advantages relative to conventional payment methods: speed (in some cases), cost (in some cases), x-border movement, settlement finality, throughput size, programmability, etc. One of the benefits we don't hear as much about is decentralization – and I wonder how salient a benefit that really is.

Do consumers care whether transactions are decentralized? Whether they are build on an open vs. closed protocol? Is decentralization a core payments feature for the mass-market?

Early internet users expected peer-to-peer commerce to disrupt legacy merchants. Nobody anticipated Amazon Marketplace. Will private chains and bank chains end up playing a similar role, dominating blockchain payments volume, while permissionless chains move to the fringe? If you're a consumer trying to move money from Point A to Point B and JPMD <> PYUSD lets you do that, do you care?

Ayo Omojola also shared some questions that I found interesting on sovereign stablecoins, their interplay with local real-time payment rails (eg: RTP, SPEI, UPI, PIX), and the tradeoffs they pose to consumers.

And – the US government is increasingly relying on stablecoins as the instrument to find buyers for US debt. It's incredible to see a sitting Treasury Secretary discussing fintech and crypto as a policy tool.

If you want to see these conversations happening live and in-person, come join us at Stablecon in Washington DC on Sep 9-11, 2026. Tickets are available at a discount for a limited time:

You can join our EMEA conference in Amsterdam, May 19-20, at register.stablecon.com/emea

Please enjoy another week of fintech and banking news below.

Have feedback for us? Let us know. Find me at @nikmilanovic, @twifintech, and @ndm

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Visa is piloting a new Visa Direct program that sent USD‑backed stablecoin payouts (like USDC) directly into creators’ and gig workers’ wallets, giving them near-instant access to funds, even in underbanked regions. The network also introduced its “Trusted Agent Protocol” under its Intelligent Commerce suite, using cryptographic signatures to authenticate AI agents and block malicious bots in agentic (AI‑driven) commerce.

Bank of America launched “401k Pay,” a digital solution that let employees convert their 401(k) assets into a retirement income stream, with real‑time income tracking, flexible deposits, and no added cost to plan sponsors.

HSBC expanded its tokenized deposit service into the U.S. and UAE, enabling corporate clients to move money in real time using on‑balance-sheet, regulated digital tokens.

J.P. Morgan launched its biggest-ever fraud and scam prevention initiative, which combined in-app warnings for risky payments, a dedicated “Scam Interruption Team,” and public education workshops.

Alibaba is using J.P. Morgan’s JPMD blockchain infrastructure to settle tokenized U.S. dollar and euro deposits for its B2B platform, reducing intermediaries and speeding up cross-border payments.

Polygon / Anq are working on developing India’s ARC token, a rupee-backed, debt-collateralized stablecoin, which aimed for a tentative launch in Q1 2026 under a two-tier framework complementing the RBI’s CBDC.

J.P. Morgan secured agreements with fintech data-aggregators (like Plaid, Yodlee, Morningstar, Akoya) to charge them for access to customer account data — compensating for what had previously been free access.

HSBC restructured its trading division by merging its G-10 rates, FX, emerging markets, and commodities desks into a global macro business to double down on its debt-financing ambitions.

Lloyds faced a shareholder rebellion over its planned £120 million acquisition of digital wallet provider Curve, driven by criticism that the price deeply undervalued Curve.

Deutsche Börse partnered with Societe Generale to integrate its EUR and USD CoinVertible stablecoins into Deutsche Börse’s infrastructure for regulated settlement under EU MiCA.

Public launched an AI-powered brokerage that let users build custom investable indexes and will roll out an AI-driven wealth manager in early 2026.

World App is piloting virtual bank accounts that issue unique account numbers and convert incoming payroll deposits automatically into USDC. (Below)

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Aztec Network opened a token sale via Uniswap Labs’ new Continuous Clearing Auction (CCA), aiming for a fair, community-first distribution using zero-knowledge proofs.

Block started a real-time Cash App Score pilot that showed users how their actions (like depositing pay or paying loans) impacted their credit-eligibility in real time.

Wealthfront launched early access to a software-driven mortgage product offering low, transparent rates and no hidden fees, initially in Colorado.

Zopa rolled out a beta version of its “Zopa Investments” product to existing users, targeting first-time investors with plans for public availability in early 2026.

Primer unveiled an AI agent (Primer Companion) to help payments teams optimize performance, automate decisions, and detect opportunities in real time.

Nova Credit introduced its Eligibility Compass tool, which consolidated bank, payroll, and document data to speed up income and asset verification for affordable housing.

Flexa launched a crypto-focused point-of-sale terminal that lets retailers accept digital-asset payments without custody risk, settling in fiat or crypto.

Bitget Wallet introduced a zero-fee crypto card available in more than 50 markets, allowing fee-free stablecoin spending via Visa and Mastercard networks.

Extend expanded its expense management platform so small- and mid-sized businesses could link any company credit card, automate tracking and reconciliation, and capture receipts with AI.

Solflare unveiled a self-custody crypto debit card (in partnership with Mastercard) that lets users spend USDC directly from their Solflare wallet without preloading or conversion.

And Coinbase is working on becoming The Everything App:

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Roam partnered with Bridge (a Stripe company) and Maplerad to let Africans open U.S.-dollar bank accounts, receive payments in USD and stablecoins, convert to local currency, and move money cross-border – streamlining global income access for freelancers and remote workers.

Klarna delivered a record third-quarter as a public company, generating US$903 million in revenue, signing up 4 million Klarna Card users in four months, and forecasting its first billion-dollar quarter in Q4 2025.

OneVest expanded its platform to support EUR, GBP, AED, and JPY (in addition to USD and CAD), enabling unified reporting, billing, and operations across multiple currencies for global wealth managers

Stripe moved $14 million to Mexico in under 2 hours using Bridge.

Intuit paid over $100 million to OpenAI for a multiyear deal that integrated its apps (like TurboTax, Credit Karma and QuickBooks) into ChatGPT, enabling users to access financial-tools and personalized insights through chat.

UBS partnered with Ant International under a memorandum of understanding to use its “Digital Cash” blockchain platform and Ant’s Whale treasury-system to enable real-time, multi-currency cross-border payments and explore tokenised deposits, thereby aiming to boost efficiency, transparency and liquidity across global flows.

Mastercard chose Polygon Labs (with involvement of Mercuryo) to power its Crypto Credential initiative for self-custody crypto wallets by replacing long wallet addresses with verified username-style aliases, simplifying the user experience and reducing transfer errors in the digital-assets ecosystem.