Feb CPI Print; OCC Rolls Back Crypto Restrictions; Green Dot up for Sale
Feb CPI numbers. OCC rolls back crypto restrictions. Synctera funding round. Dave and Sezzle announce share repurchase programs. American Express acquires an expense management software company. Green Dot evaluates strategic alternatives.
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Feb CPI Comes in at 2.8%
Inflation numbers for February delivered a (somewhat) pleasant surprise. CPI was up 2.8% year over year, slightly less than expected and drop from January’s 3% year over year reading. “Core” inflation, which excludes more volatile food and energy prices, was up 3.1%, slightly lower than the consensus estimate of 3.2%. Still, despite the progress towards the Fed’s long-term 2% target, uncertainty remains, given the ever-evolving tariff landscape, as well as potential impacts on the workforce from President Trump’s immigration and deportation policies.
OCC Rolls Back Crypto Restrictions
The Office of the Comptroller of the Currency, which regulates nationally chartered banks, reversed a Biden-era requirement that banks looking to engage in certain cryptocurrency-related activities first receive supervisory non-objection. The new guidance, Interpretive Letter 1183, makes clear that OCC-chartered banks are allowed to participate in crypto-asset custody, certain stablecoin activities, and independent node verification networks such as distributed ledger without first demonstrating they have adequate compliance controls in place. However, the guidance does specify that banks engaging in such activities must do so in “safe, sound, and fair manner and in compliance with applicable law.” Acting Comptroller Rodney Hood said of the move, “Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology.” The OCC justified the reversal by suggesting it had improved its understanding of crypto-related activities since the Biden-era measure, making it no longer necessary.
Synctera Announces a $15Mn Raise
Is BaaS back? Intermediary platform provider Synctera announced it has raised an incremental $15Mn in funding, according to a TechCrunch exclusive that dropped last week. The $15Mn is an extension of Synctera’s Series A. The extension was co-led by Fin Capital and Diagram and brings Synctera’s total capital raised to date to $94Mn. Synctera cofounder and CEO Peter Hazlehurst told TechCrunch the company now has 31 customers with a total of 416,000 end users, including seemingly back-from-the-dead one-click checkout startup Bolt. According to Hazlehurst, the company’s revenue is up 80% and gross profit is up 230% year over year. The news is a much-needed win for the somewhat beleaguered middleware platform space, which is still reeling from the collapse of Synapse nearly a year ago. Of the impact of that incident on the market, Hazlehurst said, “It has slowed down and caused a lot more caution in the market as a whole. We certainly see more in-depth due diligence processes with new partners, banks, and customers, which I think is ultimately a good thing for consumers and the industry at large.”
Dave, Sezzle Announce Share Repurchase Programs
Neobank Dave announced last week that its board of directors has authorized a $50Mn share repurchase program. According to the news release, “The repurchase program does not have a fixed expiration date and may be executed from time to time based on market conditions, liquidity, and other strategic considerations.”
Meanwhile, buy now, pay later startup Sezzle announced a six-for-one stock split “to make ownership more accessible to investors and employees.” Each Sezzle stockholder of record on March 21 will receive an additional five shares as a dividend. Sezzle’s board also authorized a $50Mn share repurchase program. According to the news release, “The repurchase program has no fixed expiration, allowing flexibility in execution based on market conditions and other factors.” Earlier this month, Sezzle also began rolling out a discounting feature in its product marketplace. The coupons offer savings of 5%-20% on select products in Sezzle’s marketplace of about 1Mn items.
American Express Acquires Expense Management Platform
American Express announced last week that it has reached a deal to acquire expense management software provider Center. Center offers an expensive management platform, integrated corporate cards, and travel management solution. Amex plans to integrate its corporate and small business cards with Center’s offering. Fintech players like Brex, Ramp, and Mercury have increasingly been aiming to pick off the types of small businesses and larger enterprises that have long been Amex’s bread and butter. The deal is expected to close in the second quarter. Terms of the transaction were not disclosed.
Green Dot Evaluating Strategic Alternatives
Green Dot has engaged Citi to explore “strategic alternatives,” the company said in a press release last week. The news came on the heels of the news that Green Dot CEO George Gresham had stepped down from his roles at the company. Gresham had only been in the CEO role for about 2.5 years, having been promoted from serving as Green Dot’s COO and CFO. Green Dot appointed 83-year-old William Jacobs to serve as interim CEO.
