🇨🇴 OPINION: Columbia’s Omid Malekan says tokenized deposits can’t beat stablecoins. https://t.co/mJlix5OTcb ...

RT Avalanche Team1 (@AvaxTeam1)How TIS Is Modernizing Japan’s $2 Trillion Payment Network with Avalanche 🔺By combining its deep roots in traditional finance with Avalanche’s technology, TIS is creating a regulated ecosystem where stablecoins, tokenized deposits, & digital securities can moveBlog below 👇 https://t.co/zRmLvokWnl ...

Financial Performance - The company reported a statutory profit after tax of GBP 3.3 billion for the first nine months of the year, with a return on tangible equity (ROTE) of 11.9% [5][6] - Excluding the motor provision, ROTE was 14.6%, and the company expects ROTE for the full year to be around 12% or approximately 14% excluding motor [6][18] - Year-to-date net income reached GBP 13.6 billion, a 6% increase compared to the previous year, driven by growth in net interest income and a 9% rise in other operating income [6][10] Business Line Performance - Group lending balances increased to GBP 477 billion, up GBP 18 billion or 4% year-to-date, with retail lending growing by GBP 5.1 billion [8][9] - Year-to-date deposits grew by GBP 14 billion or 3%, with a quarter-on-quarter increase of GBP 2.8 billion in Q3 [9][10] - Other operating income for the year-to-date was GBP 4.5 billion, up 9% year-on-year, with Q3 OOI at GBP 1.6 billion, reflecting growth in motor and investments [11][12] Market Data - The company maintained a net interest margin of 3.06% in Q3, with expectations for continued growth in net interest income for the full year to be around GBP 13.6 billion [6][10] - The asset quality ratio is expected to be around 20 basis points for the full year, reflecting strong credit performance [7][16] Strategic Developments - The company completed the acquisition of Schroders Personal Wealth, now rebranded as Lloyds Wealth, which will enhance its wealth management capabilities [4][36] - Significant progress has been made in the digital asset strategy, including partnerships to deliver tokenized deposits and FX derivatives trades [5][41] Management Commentary - Management expressed confidence in the company's ability to meet its 2026 guidance despite the additional motor provision charge [4][21] - The company remains focused on creating value for customers and stakeholders through targeted growth and improved propositions [3][21] Other Important Information - The company has taken an additional GBP 800 million charge related to motor commissions, bringing the total provision to GBP 1.95 billion [4][15] - Operating costs year-to-date were GBP 7.2 billion, up 3% year-on-year, with expectations to meet full-year guidance of GBP 9.7 billion [13][14] Q&A Session Summary Question: Regarding the motor finance provision and potential top-up - Management indicated that the current provision of GBP 1.95 billion is based on scenario analysis and reflects the adverse end of expected outcomes [25][26] Question: Expectations for net interest margin (NIM) growth - Management expects NIM to increase in Q4, driven by structural hedge contributions, and anticipates continued margin expansion into 2026 [27][29] Question: Insights on the wealth management strategy and potential inorganic growth - Management emphasized the importance of integrating Lloyds Wealth into existing offerings and indicated a focus on organic growth following the acquisition [36][40] Question: Update on non-banking funding costs and other operating income trends - Management noted that non-banking net interest income is running about 10% ahead of last year, driven primarily by volume growth rather than rate increases [74][75]

Financial Performance and Key Metrics - The group reported a statutory profit after tax of £3.3 billion for the first nine months of 2025, with a return on tangible equity (ROTE) of 11.9% [5][6] - Excluding the motor provision, ROTE was 14.6%, and the full-year ROTE is now expected to be around 12% or 14% excluding motor [6][17] - Year-to-date net income reached £13.6 billion, a 6% increase compared to the previous year, driven by growth in net interest income and a 9% rise in other operating income [6][12] - Operating costs for the year-to-date were £7.2 billion, up 3% year-on-year, in line with expectations [7][14] - The closing CET1 ratio stood at 13.8%, reflecting strong capital generation of 110 basis points year-to-date [19] Business Line Performance - Group lending balances increased to £477 billion, up £18 billion or 4% year-to-date, with retail lending growing by £5.1 billion [9][10] - Year-to-date deposits grew by £14 billion or 3%, with a quarterly increase of £2.8 billion [10] - Net interest income for the first nine months was £10.1 billion, up 6% year-on-year, with a net interest margin of 3.06% [11][12] - Other operating income (OOI) reached £4.5 billion year-to-date, up 9% year-on-year, with Q3 OOI at £1.6 billion, a 3% increase from Q2 [12][68] Market Data and Key Indicators - The retail business saw continued growth across cards, loans, and motor businesses, while commercial lending balances increased by £1.3 billion in Q3 [9][10] - The insurance, pensions, and investments segment experienced steady growth, with approximately £3.3 billion of open book net new money year-to-date [10] Company Strategy and Industry Competition - The company completed the acquisition of Schroders Personal Wealth, now rebranded as Lloyds Wealth, which will enhance its wealth management capabilities [4][33] - Significant advancements were made in the digital asset strategy, including partnerships to deliver tokenized deposits and FX derivatives trades [5][39] - The company aims to integrate Lloyds Wealth into its broader offerings, enhancing customer propositions and driving shareholder value [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying business performance despite the additional £800 million charge related to motor commissions [4][19] - The company anticipates continued growth in net interest income and margin expansion into 2026, driven by structural hedge contributions and lending growth [26][27] - The outlook for asset quality remains strong, with an expected asset quality ratio of around 20 basis points for the full year [16] Other Important Information - The company maintained strong cost discipline, with year-to-date operating costs in line with expectations, and plans to meet its full-year guidance [14][19] - The total provision for motor finance remediation now stands at £1.95 billion, reflecting the adverse outcomes from FCA proposals [15][44] Q&A Session Summary Question: Regarding motor finance provisions and potential top-ups - Management indicated that the current provision of £1.95 billion is a best estimate and that the FCA's proposals are heavily weighted in their scenario analysis, suggesting limited movement in overall provisioning [22][24] Question: Expectations for net interest margin (NIM) growth - Management expects NIM to continue to grow in Q4, driven by structural hedge contributions, and anticipates continued margin expansion into 2026 [26][27] Question: Insights on the wealth management strategy post-acquisition - The acquisition of Lloyds Wealth is seen as a significant step forward, with plans to integrate it into existing customer propositions and enhance advisory capabilities [33][34] Question: Thoughts on tokenized assets and their impact on banking revenues - Management views tokenized assets as an opportunity rather than a threat, with ongoing projects aimed at developing programmable currency and enhancing customer value [39][40] Question: Distribution strategy and potential for more frequent buybacks - Management remains committed to distributing excess capital and will consider the form and timing of distributions at the end of the year, with no immediate plans for more frequent buybacks [42][44] Question: Trends in non-banking net interest income and other operating income - Non-banking net interest income is running about 10% ahead of last year, primarily driven by volume growth, while other operating income is expected to continue growing, albeit with some variability across divisions [62][66][68]

Core Insights - The GENIUS Act represents a significant step towards regulating the cryptocurrency and stablecoin sectors, but its effectiveness will depend on how regulators address existing gaps and implement the law [1][3][4] Regulatory Framework - The GENIUS Act is seen as a foundational framework rather than a complete regulatory architecture, indicating that further work is needed to establish detailed rules [3] - Federal and state regulators' interpretations and enforcement of the GENIUS Act will be crucial in determining the stability and trustworthiness of the U.S. stablecoin ecosystem [4][5] Reserve Asset Risks - The act allows for digital assets like Bitcoin to be used as reserve assets for stablecoins, which could introduce volatility and undermine the stability implied by the term "stablecoin" [5][6][7] - There are concerns regarding the inclusion of uninsured deposits in reserve requirements, reminiscent of past banking failures [9][10] Regulatory Fragmentation - The GENIUS Act empowers multiple federal and state agencies to oversee stablecoin issuers, which may lead to inconsistent regulations and a "race to the bottom" in oversight [11][12] - The broad definition of permissible activities for stablecoin issuers could create regulatory ambiguities, where one regulator's approved activity may be viewed as prohibited by another [13][14] Alternative Solutions - Tokenized deposits are presented as a viable alternative to stablecoins, offering the benefits of traditional banking, such as deposit insurance and regulatory oversight, while still enabling digital transactions [16][17][18]

Financial Data and Key Metrics Changes - The company reported net income of $3.8 billion and earnings per share (EPS) of $1.86, with a return on tangible common equity (ROTCE) of 8% [4][16] - Adjusted EPS, excluding goodwill impairment from the Banamex transaction, was $2.24, with an adjusted ROTCE of 9.7% [4][16] - Revenues increased by 9% year-over-year, reaching $22.1 billion [4][16] - Total markets revenues were up 15%, with expenses of $14.3 billion increasing by 9% [17][24] Business Line Data and Key Metrics Changes - Services had record revenues growing by 7%, with assets under custody and administration up 13% [5][24] - Markets revenues increased by 15%, driven by fixed income and equities, with equities revenues up 24% [25][26] - Banking revenues surged by 34%, with investment banking fees up 17% [27][28] - Wealth management revenues rose by 8%, with record net new investment assets of $18.6 billion [7][29] - U.S. Personal Banking (USPB) revenues increased by 7%, with branded cards revenues up 8% [31] Market Data and Key Metrics Changes - Cross-border transactions increased by 10%, and U.S. dollar clearing volume was up 5% [24] - The company reported a 115% average liquidity coverage ratio (LCR) and maintained over $1 trillion in available liquidity resources [22] Company Strategy and Development Direction - The company is focused on simplifying operations and investing in technology to enhance agility and modernize banking services [10] - A new partnership with BlackRock was announced to manage $80 billion of client assets, aligning with an open architecture strategy [7] - The company aims to achieve an ROTCE target of 10% to 11% next year, with continued investments in transformation and technology [40] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment is resilient, with the U.S. economy driven by consumer spending and tech investments [12][14] - The company is cautious about pockets of valuation frothiness in the market and is focused on maintaining discipline [12] - The outlook for 2025 includes expectations for revenue growth exceeding $84 billion, with net interest income (NII) expected to rise around 5.5% [38][39] Other Important Information - The company returned over $6 billion in capital to shareholders during the third quarter, with $5 billion in share repurchases [9][22] - The agreement to purchase a 25% equity stake in Banamex is a significant step towards divestiture and de-consolidation [9][36] Q&A Session Summary Question: Update on actions related to the consent order regarding risk compliance and controls - Management reported that over two-thirds of programs are at or near target state, with significant progress in compliance and risk management [42][43] Question: Transformation expense for 2025 - The transformation expense is expected to be slightly under $3.5 billion in 2025, with efforts to execute more efficiently [46] Question: Thoughts on the Banamex transaction and timing for IPO - The 25% stake is a significant step towards de-consolidation, with regulatory approval expected to take 9 to 12 months [52][54] Question: Pace of Stablecoin adoption and its importance - Management sees tokenized deposits as a key area of investment, with increasing demand for real-time money movement solutions [60][61] Question: Efficiency path for next year and potential for lower expenses - Management anticipates a path for lower expenses in 2026, targeting an efficiency ratio below 60% [70][72]

🚨 BIG: $55.8T BNY Mellon is exploring tokenized deposits and blockchain-based payments, per Bloomberg. https://t.co/9yjHvIQCn1 ...

BREAKING: 🇺🇸 THE WORLD’S LARGEST CUSTODIAN BANK, BNY MELLON, IS EXPLORING TOKENIZED DEPOSITS AND BLOCKCHAIN-BASED PAYMENTS.BULLISH 🚀 ...

🚨JUST IN: BNY MELLON, THE WORLD’S LARGEST CUSTODIAN BANK, IS EXPLORING TOKENIZED DEPOSITS AND BLOCKCHAIN-BASED PAYMENTS ~ WATCHERGURU ...

Industry Trend - The world's largest custodian bank, BNY Mellon, is exploring tokenized deposits and blockchain payments [1]