Cross River IQ

Inflation Ticks Up; Pagaya Forward Flow Deal; Stablecoin Summer Heats Up

Cole Gottlieb, AVP Corporate Strategy

July 21, 2025
6
 min read

Inflation ticks up. Castlelake strikes forward flow deal with Pagaya. iCapital raises $820MM. Stablecoin summer continues with multiple funding announcements. Starling eyes U.S. expansion, possible IPO. JPMorgan Chase may start charging for open banking data.

Congress just passed the GENIUS Act—and stablecoin regulation is accelerating. The Information spoke with Cross River’s Chief Compliance Officer, Benjamin Melnicki, about what’s coming next in digital assets and how Cross River is preparing (accessible with a subscription to their free newsletter, The Briefing).

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Inflation Ticks Up

U.S. inflation ticked up in June, in a sign that firms may have begun passing along tariff-related price increases to consumers. Prices rose 2.7% in June vs. the prior year, according to the latest Department of Labor stats, a marked increase from May’s 2.4% jump. Clothing, toys, and furniture, which tend to be imported and thus subject to Trump’s evolving tariff regime, contributed to the jump in inflation vs. May. Core inflation, which excludes more volatile food and energy prices, was up 2.9%, consistent with economists’ expectations. Meanwhile, overall economic activity ticked up slightly in June, according to the Federal Reserve’s Beige Book, an improvement over the prior installment of the report, which showed declining activity in half of the 12 Fed districts. The current report does show pressure on prices, with all 12 districts reporting increased input costs, largely driven by tariffs.

Image: WSJ

Castlelake and Pagaya Strike $2.5Bn Forward Flow Deal

Castlelake has entered into a forward flow agreement with Pagaya to buy up to $2.5Bn in loans from the second-look lender. Castlelack will purchase the loans over a 16-month period, helping Pagaya fund the expansion of its lending program. The deal isn’t Pagaya’s first with Castlelake. The companies entered into a similarly structured forward flow transaction for about $1Bn in loans in 2024. Pagaya’s chief financial officer, Evangelos Perros, commented on the transaction by saying, “We will continue to find ways to optimize both our funding mix and our balance sheet, reinforcing our statements of executing a self-funded growth plan without the need to raise equity capital.”

iCapital Raises $820MM

iCapital, a platform connecting wealth and asset managers, announced it has raised a fresh $820MM in financing. The deal values iCapital at over $7.5Bn. The investment round was co-led by accounts advised by T. Rowe Price and SurgoCap Partners. iCapital services a total of $945Bn of assets globally on its platform, including $485Bn in client assets, $257Bn in alternative platform assets, and $203Bn in structured investments and annuities. iCapital plans to use the new funding to support targeted acquisitions and to attract a new and broader range of investors. iCapital Chairman and CEO Lawernce Calcano commented on the raise by saying, “This capital raise reflects our investors’ enthusiasm for the opportunity we have to transform the investing experience. More importantly, it enables us to accelerate the work that matters most – delivering differentiated value to our clients.”

Stablecoin Summer: Dakota, Zerohash, Agora All Raise New Capital

With several pieces of major fundraising news last week, stablecoin fever continues unabated. Dakota, a stablecoin-powered business banking platform, announced it has raised a $12.5MM Series A. The company, founded by an alum of crypto stalwart Coinbase, Ryan Bozarth, has processed over $1.6Bn in transactions over the last year. The Series A was led by CoinFund, with participation from Digital Currency Group, Triton Ventures, and 6th Man Ventures.

Meanwhile, crypto and stablecoin infrastructure startup Zerohash is poised to raise a fresh $100MM in funding, Fortune reports. The round could value the company at nearly $1Bn. Publicly traded online brokerage Interactive Brokers is said to be leading the round. The company last raised funding in 2022, in a $105MM round that included investments from NYCA, Point72, and Bain Capital.

Finally, Agora, also led by a Coinbase alum, announced it has raised a whopping $50MM Series A. The round was led by Paradigm, a crypto-focused venture firm cofounded by, you guessed it, another Coinbase veteran, Fred Ehrsam, with participation from Dragonfly Capital. Dragonfly Capital led a $12MM seed investment in Agora last year. Agora offers what it describes as a “full stack” stablecoin infrastructure, including its own stablecoin, AUSD. Since its launch last October, Agora has deployed AUSD on 13 blockchain networks, including Ethereum, Polygon, and Solana. Agora has also launched a white-label product, enabling brands to quickly launch their own branded stablecoins.

Starling Eyes U.S. for Possible IPO

U.K. digital banking startup Starling is eyeing a public listing, and it is considering doing so in the U.S., the bank’s CFO Declan Ferguson told the FT in an interview last week. The potential listing coincides with Starling’s planned operational expansion into the U.S. market. Listing in the U.S. instead of U.K. could mean higher demand for share, translating into a higher valuation. Media reports have also indicated Starling is seeking to expand into the U.S. by buying an existing bank. Starling isn’t the only British neobank looking to the U.S. for growth. Both Revolut and Monzo have operated in the U.S. for some time via bank partnerships, though neither have seen breakout success in the very crowded American banking market.

JPMorgan Chase Rocks Open Banking World

JPMorgan Chase upended the open banking world last week, with news that the largest bank in the U.S. plans to start charging for access to consumer data. The bank has already shared pricing information with some industry stakeholders, though potential charges have not been finalized and negotiations are ongoing. JPMorgan Chase’s move comes in the wake of the CFPB’s decision to essentially abandon the open banking rule finalized just last October, during the tail end of the Biden administration. The CFPB has asked a court to vacate the rule, in a case filed by a small Kentucky bank, the Kentucky Bankers Association, and the Bank Policy Institute. In their case, the plaintiffs argue that the rule exceeds the CFPB’s authority and that elements of it are arbitrary and capricious, in violation of the Administrative Procedures Act. That case is ongoing, and another trade group, the Financial Technology Association, was granted permission to intervene and argue in favor of preserving the open banking rule.

PNC is considering following JPMorgan’s lead, the bank’s CEO Bill Demchak said in an earnings call last week. Demchack added that the bank is in discussions and is considering what actions to take.

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