Core Viewpoint - The dominance of traditional bank deposits as a safe haven is being challenged by the rise of dollar-pegged stablecoins, posing a structural risk to banks globally [2][4]. Group 1: Impact on Bank Deposits - Standard Chartered estimates that U.S. bank deposits could decrease by one-third of the stablecoin market cap, which is currently around $301 billion, indicating a potential outflow of tens of billions of dollars from the banking system [4]. - If the stablecoin market grows to approximately $2 trillion, banks in developed economies could see around $500 billion in deposits leave by the end of 2028, while emerging-market banks could lose close to $1 trillion during the same period [5]. Group 2: Stablecoin Demand and Market Dynamics - Approximately two-thirds of stablecoin demand originates from emerging markets, with one-third from developed markets [5]. - The yield on stablecoins has become a contentious issue, with banks arguing that it could lead to a significant outflow of deposits and increased risks of bank runs, while the crypto community claims that stablecoins already generate yield through reserves and market activities [6]. Group 3: Legislative Context - The debate surrounding stablecoins has intensified with proposed U.S. legislation like the CLARITY Act, which has faced opposition from exchanges like Coinbase, arguing that such restrictions would hinder innovation and institutional adoption [7]. - Bank of America CEO Brian Moynihan has warned that up to $6 trillion in bank deposits could transition to stablecoins, representing about 30-35% of total commercial bank deposits in the U.S. [8].

Summary of VersaBank Conference Call Company Overview - **Company Name**: VersaBank - **Ticker Symbols**: VBNK (Nasdaq and TSX) - **Established**: 30 years in operation, recognized as a fully digital bank in North America [2][3] Core Business Highlights - **Growth Rate**: Achieved a compounded average growth rate of 27% over the past three years, reaching nearly CAD 6 billion in assets [4] - **Profitability**: Generated nearly CAD 36 million in ordinary income in 2025, with expectations for increased efficiency and profitability as operations expand in the U.S. [4] - **Business Model**: Operates a cloud-based, branchless business-to-business model, benefiting from significant operating leverage [3] Digital Asset Strategy - **Digital Asset Leadership**: Positioned as a leader in the digital asset space, with a focus on tokenized deposits and stablecoins [5][6] - **Market Trends**: Approximately 70% of generational wealth is expected to transfer to non-bank entities, creating challenges for traditional banks [6] - **Stablecoin Market**: The total value of the stablecoin market has surpassed $300 billion, reflecting a growth of over one-third in the last year [8] Tokenized Deposits - **Definition**: Tokenized deposits are digital representations of actual bank deposits on the blockchain, eligible for deposit insurance and capable of paying interest [7][8] - **Market Opportunity**: Anticipated to provide low-cost funding for financing and lending activities, with billions in potential deposits from cross-border trade between the U.S. and Canada [12] - **Regulatory Environment**: No new legislation is expected to be required for the launch of tokenized deposits, as they are real bank deposits reflected on a blockchain [19][20] Community Bank Engagement - **Licensing Opportunities**: Plans to license deposit token technology to community banks, allowing them to issue their own tokens [22][23] - **Community Bank Support**: Received positive feedback from community banks eager for regulatory clarity to adopt deposit tokens [22] Cybersecurity Business Update - **Divestiture**: Currently in the process of selling the cybersecurity services business, which is unrelated to the digital asset operations [33][34] - **Bids Received**: Expecting to receive bids for the cybersecurity business within the next month [35] Future Outlook - **Growth in U.S. Market**: Anticipates continued strong growth in the U.S. market, with a focus on enhancing product offerings and leveraging AI for receivable purchases [30][32] - **Deposit Insurance Expectation**: Expects that tokenized deposits will be covered by deposit insurance, crucial for maintaining depositor confidence [36][39] Conclusion - **Investment Proposition**: VersaBank presents a low-risk, high-growth digital banking opportunity with significant upside potential in the digital asset space, particularly through tokenized deposits and stablecoin custody [14][15]

Bitcoin's going to be hit the hardest because it's the most liquid crypto asset. >> The need for this market structure regulation could not be more important. >> This is going to be a big week for cryptocurrency.Send this video to somebody who owns Bitcoin or Ethereum or crypto. This news applies to you. Let's start here just in the US Senate vote on the crypto market structure bill clarity act.This is a huge bill for the crypto market. It has been rescheduled to Thursday due to a major snowstorm in Washing ...

Jeel, a subsidiary of Riyad Bank, has signed a partnership with Ripple to explore advanced blockchain applications aimed at strengthening financial services across Saudi Arabia. In a press release shared with CryptoNews, the firm said the partnership will focus on developing secure and transparent digital infrastructure that can support the Middle East. The agreement is part of growing institutional interest in blockchain payment systems and digital asset technologies as Saudi Arabia continues positioni ...

Core Insights - Digital asset investment products experienced significant outflows of $1.73 billion, marking the largest weekly decline since mid-November 2025, driven by bearish sentiment and fading expectations for interest rate cuts [1] - The outflows were predominantly from the United States, which accounted for nearly $1.8 billion, while sentiment varied across Europe and Canada [1] Group 1: Outflows by Major Assets - Bitcoin products saw outflows of $1.09 billion, the largest since mid-November 2025, indicating a lack of recovery in investor confidence following the October 2025 price crash [2] - Ethereum experienced outflows of $630 million, and XRP investment products had an additional $18.2 million exit, reflecting widespread weakness among major digital assets [2] Group 2: Minor Inflows and Exceptions - Minor inflows into short-Bitcoin products totaled $0.5 million, suggesting limited bearish positioning, although overall sentiment remains unchanged [3] - Solana attracted $17.1 million in inflows, contrasting with the broader negative trend, while smaller altcoins like Binance-linked products ($4.6 million) and Chainlink ($3.8 million) also saw modest gains [3] Group 3: Regional Flow Dynamics - While the US faced significant outflows, other regions capitalized on price weakness to increase long positions, with Switzerland recording inflows of $32.5 million, Canada $33.5 million, and Germany $19.1 million [4] - Sweden and the Netherlands experienced smaller outflows of $11.1 million and $4.4 million, respectively, indicating a divergence in investor behavior [4][5] Group 4: Long-Term Outlook - Despite short-term bearish trends in fund flows, CoinShares Research maintains a bullish long-term outlook for Bitcoin, projecting a potential floor price of $317,000 by 2029 based on an updated adoption-based valuation model [6] - The model suggests Bitcoin could grow from approximately 560 million owners in 2025 to 1.16 billion by 2029, positioning it as a global savings asset competing with traditional investments [7]

Market Overview - Bitcoin's price has decreased nearly 7% over the past week, currently standing at $89,225, reflecting a 1% drop in the last 24 hours [1] - The cryptocurrency has seen a significant cash outflow, with US investors withdrawing over $1.3 billion from exchange-traded funds (ETFs) linked to Bitcoin [1] Geopolitical Impact - Bitcoin briefly reached $95,419 last weekend before experiencing a sharp decline due to US President Donald Trump's renewed tariff threats, which caused market panic and sell-offs across various asset classes [2] - Despite a rebound in the stock market after Trump retracted his tariff threats, Bitcoin and other digital assets remain down [4] Institutional Participation - There has been a noticeable increase in off-ramping activity from stablecoins to fiat, indicating a potential reversal in institutional participation that had been gaining momentum earlier in the year [3] - Experts suggest that geopolitical uncertainties are a significant factor affecting Bitcoin's performance [3] Historical Context - Bitcoin is currently down 29% from its record high of $126,080 reached in October, following a massive sell-off that liquidated over $19 billion in leveraged positions, marking the largest event of its kind in digital asset history [5] - At the beginning of the year, there was optimism in the crypto market as US investors injected over $1.5 billion into Bitcoin and Ethereum ETFs within two days [5] Long-term Perspective - Experts advise investors to focus on long-term gains with digital assets, despite current volatility [6] - Bloomberg's senior ETF analyst emphasizes the importance of considering annualized returns, suggesting favorable conditions for Bitcoin's performance in 2026 due to factors like government debt and increased liquidity [7] Market Correlation - Following the COVID-19 pandemic, Bitcoin's trading patterns have shown a correlation with tech stocks, but its returns are becoming increasingly decoupled from other assets [8]

Core Viewpoint - The cryptocurrency industry is expected to compromise on the stablecoin rewards clause in the market structure bill, as it faces a strong banking lobby [2][3]. Group 1: Industry Dynamics - Galaxy Digital Inc. CEO Mike Novogratz believes the cryptocurrency industry will ultimately lose the battle against the banking lobby, leading to a compromise where stablecoin companies can offer rewards for usage but not on idle balances [2]. - Novogratz expressed that the overall bill is beneficial for the industry, indicating a strong commitment from Democrats to pass the legislation [3]. Group 2: Legislative Context - The urgency for the legislation stems from two main reasons: the desire for America to lead in digital assets and the political implications of being anti-crypto [4]. - Coinbase has withdrawn its support for the cryptocurrency market structure bill due to objections regarding a rule that would prevent cryptocurrency platforms from paying rewards on idle stablecoin balances, which is not applicable to traditional banks [5]. Group 3: Market Reactions - Coinbase CEO Brian Armstrong has called for a "level playing field" for cryptocurrency companies, advocating for users' rights to earn a 3.8% yield on their stablecoins [5].

Key TakeawaysUBS (UBS) is reportedly set to offer cryptocurrency trading to its wealthy clients at its Swiss private bank, signaling a growing embrace of digital assets by traditional financial institutions.India and the European Union are on the verge of finalizing a comprehensive Free Trade Agreement (FTA) and a Memorandum of Understanding (MOU) on mobility, promising substantial tariff reductions and enhanced talent exchange.French Premier Sébastien Lecornu recently survived two no-confidence motions in ...

Financial Data and Key Metrics Changes - The company reported net income of $35.2 million and earnings per diluted share of $1.57, representing increases of 17% and 28% respectively compared to the previous year [15] - Return on average assets was 1.87% and return on average tangible equity was 26.7%, up from 1.61% and 25.5% respectively in the same quarter last year [15] - Deposits totaled $6.4 billion, a decrease of $170 million year-over-year, primarily due to an increase in custodial deposits [15][16] - Average deposits during the quarter were approximately $90 million higher than the previous year [16] Business Line Data and Key Metrics Changes - Net interest income from commercial finance increased by $9.2 million due to higher balances and slightly higher yields [12][13] - Non-interest income showed solid results, particularly in core card and deposit fees, with growth attributed to new partners [14] - Loans and leases increased to $5 billion, driven by a $531 million increase in commercial finance loans, partially offset by a $148 million decrease in consumer finance loans [16] Market Data and Key Metrics Changes - The company experienced favorable deposit balances at multiple partners due to a strong holiday season and continued partner growth [16] - The government shutdown impacted secondary market revenues, but this is expected to recover in subsequent quarters [14][39] Company Strategy and Development Direction - The company aims to optimize its balance sheet by rotating from securities to loans, increasing net interest income without growing overall asset size [9] - Pathward is focused on financial inclusion, providing solutions for underserved and unbanked individuals and businesses [7] - The company is enhancing its operating model to better align with partners and support their growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth from new partnerships and the upcoming tax season, anticipating benefits from changes in tax code [10][11] - The company is optimistic about the impact of new partner announcements and the normalization of pricing in the industry [36][37] - Management highlighted the importance of monitoring new partners and the potential for increased loan originations throughout the year [44] Other Important Information - The company repurchased approximately 652,000 shares at an average price of $72.07, with 4.3 million shares still available for repurchase [19] - The fiscal year 2026 guidance for EPS has been increased to a range of $8.55-$9.05 [19] Q&A Session Summary Question: What is the adjusted NIM trajectory for Q2? - Management indicated that the adjusted NIM for Q2 is expected to be around 5.31%, with potential for it to be flat to up depending on the macroeconomic environment [21][22] Question: Can you quantify the recovery recorded within net charge-offs? - Management stated that specific quantification of the recovery is not available, but aggregate numbers can be found in the earnings release [23] Question: How does the emergence of FinTechs obtaining bank charters impact the company? - Management believes that while there may be some competition, the scale and complexity of operations required to match Pathward's offerings will take time for new entrants [25][26] Question: What is the embedded growth from new partners? - Management expects mid to high single-digit contributions from new partners once programs are launched and live [32][33] Question: What factors will influence the updated guidance? - The timing of new partner contributions and the success of the tax season are key factors that could push results toward the higher end of the guidance [38][40]

Core Insights - iPower Inc. has made significant operational advancements in its SuperSuite supply chain platform, including the onboarding of a new supply-chain partner and the introduction of additional last-mile logistics vendors, which are already operational and enhancing unit economics [1]. Group 1: Supply Chain Developments - Koala Story, a healthy pet snack brand, has been onboarded as a new supply chain partner within iPower's SuperSuite ecosystem, with an initial focus on U.S.-manufactured Chicken Chips dog treats [2]. - The products from Koala Story are produced by a seasoned U.S. manufacturing partner that supports major national consumer brands, indicating a strong foundation for growth in the pet snack category, which is experiencing premiumization trends and repeat purchase behavior [3]. Group 2: Logistics Enhancements - iPower has engaged new logistics partners, including UniUni and GoFo, to enhance delivery efficiency and reduce last-mile delivery costs, with these partnerships already live within the logistics network [4]. - The new logistics partnerships are expected to lower last-mile delivery costs and improve delivery performance in key regions, contributing to overall operational efficiency [4]. Group 3: Strategic Focus - The CEO of iPower emphasized that SuperSuite is designed to scale through effective operational execution and disciplined cost management, focusing on onboarding quality partners and reducing fulfillment costs to create durable value [5]. - iPower is continuously evaluating its operating and capital structure to maximize long-term stockholder value as part of its long-term strategy [5]. Group 4: Company Overview - iPower Inc. is a technology- and data-driven online retailer that provides value-added e-commerce services for third-party products and brands, operating a nationwide fulfillment network and expanding its infrastructure across software, logistics, and manufacturing [6].