FinTech: Top five news stories of the week
FinTech companies are aggressively pursuing banking charters and acquisitions this week, signaling a shift toward deeper infrastructure ownership. Chime has agreed to acquire Stride Bank for $590 million, while US Bank launched a live pilot for its proprietary stablecoin. Circle also expanded its global reach with a $400 million acquisition of Tazapay, and Block filed for a national trust bank charter.
Chime targets bank ownership through $590 million Stride acquisition
Chime has agreed to purchase Oklahoma-headquartered Stride Bank for $590 million in an all-cash deal. The transaction values Stride at 1.5x its tangible book valuation. Subject to approvals from the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, the deal is set to close in the first half of 2027.
Following the acquisition, Stride will rebrand to Chime Bank NA. The company stated that buying an established bank is a faster path to full-stack ownership than applying for a new de novo charter. Chime noted that owning the bank will eliminate partner-bank fees, reduce funding costs, and improve unit economics. Specifically, the company expects to realize more than $100 million in net synergies through these savings and the expansion of lending products.
US Bank launches proprietary stablecoin pilot on Stellar
US Bank has officially launched its proprietary US dollar-backed stablecoin, USBDC, following the completion of a live cross-border pilot. The transaction moved between US Bank entities in North America and Europe on the Stellar blockchain. This pilot arrives almost a year after the bank announced its partnership with Stellar to test custom stablecoin issuance.
US Bank will issue, manage, and move the stablecoin via its Digital Asset Platform. The platform connects traditional banking infrastructure with blockchain networks. The goal is to bridge gaps in the global banking system with 24/7 transaction capabilities. This move highlights how traditional institutions are integrating blockchain technology to enhance payment flows.
Circle to acquire Tazapay for $400 million
Circle, the issuer of the dollar-pegged USDC stablecoin, has agreed to acquire Singapore-based paytech Tazapay in a $400 million all-stock deal. The acquisition aims to bolster Circle’s global reach. Tazapay connects businesses to more than 100 markets and local payment methods across various sectors.
Stablecoins represent approximately 60% of Tazapay’s $25 billion annualized transaction volume. Circle plans to combine USDC with Tazapay’s banking relationships and local payout rails to accelerate global adoption. Jeremy Allaire, co-founder and CEO of Circle, emphasized that this combination will strengthen the company’s position in the international payments environment.
Leadership changes at Funding Circle
Lisa Jacobs has informed the board of directors at UK-based business lending platform Funding Circle that she intends to step down as CEO by no later than September 2027. Jacobs served as the company’s CEO for four years, having joined as chief strategy officer in 2012. Her tenure included managing the UK market before expanding into Europe.
The company board, chaired by Ken Stannard, has initiated a search for a replacement. Stannard, who was appointed as chair in 2024, expressed respect for Jacobs’ decision. He noted that 14 years is a long time for any executive and appreciated the timing of her departure to coincide with the business’s strong momentum.
Block applies for national trust bank charter
Block has filed a national trust bank charter application with the OCC as it seeks to establish Builders Bank & Trust NA. The fintech stated that if approved, Builders Bank will serve as an uninsured national trust bank. The institution will offer custody and related fiduciary services, specifically for Bitcoin and stablecoins.
Block clarified that the proposed charter would not accept deposits or make loans. Instead, the company said the charter would establish a federal supervisory framework for its current custody and fiduciary activities.
