Page 8 - gs260801

NewsBriefs

This article contains summaries of news stories recently posted under The company is working with several banks to develop
Breaking Industry News on our homepage. For links to these and other new wallet features, with initial deployments expected
full news stories, please visit www.greensheet.com/breakingnews.php. later this year.
Financial fraud victimizes
hundreds of millions of Americans

A House Financial Services Committee report warned that
financial fraud is accelerating and calls for a coordinated
response by government agencies, financial institutions
and the private sector. The report found that 75 percent of
Visa introduces Visa Stablecoin Platform Americans have experienced an online scam or attack and
estimated total fraud losses reached $196 billion in 2025.
Visa introduced the Visa Stablecoin Platform (VSP), a new It also cited fraudsters' growing use of AI, faster payment
platform designed to help financial institutions, fintechs systems and digital assets.
and payment service providers manage stablecoin opera-
tions. Initially available in beta with select clients, VSP Among its recommendations are creation of a federal inter-
enables users to access, store, mint, redeem and transfer agency task force, stronger collaboration across industries,
stablecoins, beginning with Open USD, the stablecoin in- improved fraud reporting, tougher enforcement against
troduced recently by Open Standard. scammers, and enhanced efforts by technology platforms
to identify and remove fraudulent content.
The platform includes on-chain wallet infrastructure,
wallet-as-a-service capabilities and tools for integrating X on the Money
stablecoins into treasury, settlement and payment work-
flows. Visa said VSP also incorporates security features X began rolling out X Money to select U.S. Premium and
such as dual-control approvals, audit logging and transfer Premium+ subscribers, bringing embedded banking and
controls. The company plans to expand the platform based peer-to-peer payments to the social media platform. Pow-
on feedback from early adopters and use cases. ered by Cross River Bank, the service offers FDIC-insured,
interest-bearing accounts, a Visa debit card, direct deposit,
Payment processing broker gets prison in fraud case bill payment, wire transfers and peer-to-peer payments all
within the X app.
An Oregon payment processing broker was sentenced to
three years in prison for helping two sham companies pro- Users also receive a customizable metal debit card, up to 6
cess more than $14 million in unauthorized and attempted percent annual percentage yield on deposits, and as much
unauthorized bank account debits over a six-year period. as $10 million in FDIC insurance through a cash sweep
According to the U.S. Department of Justice, Jeremy Todd program, the company stated. X Money represents anoth-
Briley knowingly obtained and maintained payment pro- er step toward Elon Musk's goal of transforming X into an
cessing relationships for the companies despite repeated "everything app."
evidence that the transactions were fraudulent.
Traditional financial institutions
Prosecutors said he also helped conceal the scheme by ma- regain ground from fintechs
nipulating return rates to deceive banks. Briley pleaded
guilty to one count of wire fraud in April. He was also Traditional financial institutions regained the lead in at-
ordered to forfeit $460,000 and will serve three years of tracting new customers during the second quarter of 2026
supervised release following his prison term. after two quarters of gains by fintech challengers, accord-
ing to JD Power's latest Signals Intelligence for Financial
Change is coming to digital wallet space Services report. Based on more than 200,000 consumer re-
sponses, the research found major banks led new account
Mastercard introduced Mastercard Wallet Services, a suite openings in checking, savings, investments, retirement
of software tools and services designed to help banks, fin- accounts, credit cards and personal loans.
techs and other providers build contactless digital wallet
capabilities for both iOS and Android devices. The offer- Reputation, promotional offers and recommendations
ing includes software development kits and secure pay- from friends and family were key factors influencing
ment technology designed to enable a single integration consumers' choices. While banks strengthened their po-
across both mobile platforms. sition, fintechs continued posting strong conversion rates
for checking and savings accounts and remained popular
Mastercard said the launch follows Apple's decision to with do-it-yourself investors, highlighting continued com-
open near field communication access to third-party de- petition in financial services.
velopers in certain markets, creating new opportunities
for digital wallet innovation.

8 8