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Long gone are the days when venture capital was flowing into fintech startups with bold ideas — and little to show in terms of business metrics and fundamentals.

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AMSTERDAM — The financial technology industry is embracing a new normal — with some industry executives and investors believing the sector has reached a “bottom.”

Executives and investors at the Money20/20 event in Amsterdam last week told CNBC that valuations have corrected from unsustainable highs from the industry’s heyday in 2020 and 2021.

Long gone are the days when venture capital was flowing into startups with bold ideas and little to show in terms of business metrics and fundamentals.

Iana Dimitrova, CEO of embedded finance startup OpenPayd, told CNBC in an interview at the firm’s booth that the market has “recalibrated.”

Embedded finance refers to the trend of technology companies selling financial services software to other companies — even if those companies don’t offer financial products themselves.

“Value is now ascribed to businesses that manage to prove there is a solid use case, solid business model,” Dimitrova told CNBC.

“That is recognised by the market, because three, four years ago, that was not necessarily the case anymore, with crazy ideas of domination and hundreds of millions of dollars in VC funding.”

Iana Dimitrova, CEO of OpenPayd, talking onstage at Web Summit in Lisbon, Portugal.

Horacio Villalobos | Getty Images

“I think the market is now more sensible,” she added.

Lighter footfall, talks happen on the fringes 

Around the show floor of the RAI conference venue last week, banks, payment companies and big technology firms showed off their wares, hoping to reignite conversations with prospective clients after a tough few years for the sector.

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Many attendees CNBC spoke with mentioned that the conference hall was a lot lighter in terms of conferencegoers and the pitter-patter of delegates flocking to various stands and booths around the RAI.

Many of the most productive conversations, some attendees CNBC spoke with say, actually happened on the fringes of the event — at bars, restaurants and even boat parties held around Amsterdam once the day on the show floor was over.

In 2021, global fintech funding reached an all-time peak of $238.9 billion, according to KPMG. Companies such as Block, Affirm, Klarna, and Revolut had hit seismically high multibillion-dollar valuations.

But by 2022, investment levels sank sharply and fintechs globally raised just $164.1 billion. In 2023, funding sank even further to $113.7 billion, a five-year low.

Have we reached the bottom?

That’s despite the massive growth of many companies. 

The bruising impact of higher interest rates means that, for even the hottest and fastest-growing players, funding is either hard to come by — or being offered at a lower prices than before.

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Nium, the Singaporean payments unicorn, said in an announcement Wednesday that its valuation had fallen to $1.4 billion in a new $50 million funding round.

Prajit Nanu, CEO of Nium, told CNBC that investors have at times been too distracted with artificial intelligence to pay attention to innovative products and growth stories happening in the world of fintech.

“Investors are now in the AI mindset,” he told CNBC. “Like, whatever it costs. I want in on AI. They’re going to burn a lot of money.”

Nanu added that the trend mimics the “craziness” fintech saw in terms of frothy valuations in 2020 and 2021.

Today, he believes we have now reached a “bottom” when it comes to fintech market values.

“I believe that this is the lowest end of the fintech cycle,” Nanu said, adding that “this is the right time to make it in fintech.”

Consolidation will be key moving forward, Nanu said, adding that Nium is eyeing several startups for acquisition opportunities.

OpenPayd’s Dimitrova said she isn’t considering tapping external investors for fundraising at the moment.

Watch CNBC's full interview with Shailendra Singh, managing director of Peak XV Partners, one of Asia's biggest venture capital firms

But, she said, if OpenPayd were to look to accelerate its annual recurring revenue past the $100 million mark, venture capital investment would come more firmly under consideration.

Crypto comeback?

Crypto also made something of a comeback in terms of hype and interest at this year’s event.

Dotted around the RAI venue were stands from some of the industry’s major players. Ripple, Fireblocks, Token8 and BVNK, a crypto-focused payments firm, all had a big presence with notable booths around.

CoinW, a crypto exchange endorsed by Italian soccer star Andrea Pirlo, had advertising flowing through a bridge connecting two of the main halls of the conference.

Fintech execs and investors CNBC spoke with at this year’s edition of Money20/20 said they’re finally seeing a real use case for cryptocurrencies after years of bulls touting them as the future of finance.

Despite the huge promise of AI around changing how we manage our money, for instance, “there’s no new AI for moving money,” according to James Black, partner at VC firm IVP — in other words, AI isn’t changing the infrastructure behind payments. 

However, stablecoins, tokens that match the value of real-world assets like the U.S. dollar, he said, are changing the game.

“We’ve seen the crypto wave, and I do think that stablecoins is the next wave of crypto that will gain more mass adoption,” Black said.

“If you think about the most exciting payment rails, you have real-time payments — I think that’s exciting, too. And it fits in with stablecoins.”

Charles McManus, CEO of ClearBank, speaks at the Innovate Finance Global Summit in April 2023.

Chris Ratcliffe | Bloomberg | Getty Images

ClearBank, the U.K. embedded finance startup, is working on launching a stablecoin underpinned by the British pound that it is expecting to receive a provisional blessing from the Bank of England soon.

Emma Hagen, CEO of ClearBank, and Charles McManus, the firm’s chair, told CNBC at its booth at Money20/20 that the stablecoin it’s working on would be sufficiently backed by a matching number of reserves.

“We’re in the early days as we learn with our partners,” Hagen told CNBC. “It’s about doing it in a way that gives people that trust and safety that there is going to be practical issuance.”

ClearBank is also working with other crypto companies on offering the ability to earn high yield on uninvested cash, McManus said.

He declined to disclose the identity of which firm, or firms, ClearBank was in talks with.

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Uber inks six-year robotaxi deal with Lucid, invests $300 million in EV company

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Uber inks six-year robotaxi deal with Lucid, invests 0 million in EV company

An autonomous robotaxi from Uber’s partnership with Lucid and autonomous vehicle startup, Nuro.

Courtesy: Nick Twork | Lucid

Uber on Thursday announced a partnership to deploy more than 20,000 robotaxis over the next six years as demand for driverless cars kicks into high gear.

As part of the partnership, the ride-hailing company is teaming up with Lucid, the electric vehicle maker, and Nuro, an autonomous vehicle startup. Under the agreement, Uber will invest $300 million in Lucid. Nuro will develop the self-driving technology that Lucid will use to supply Uber with robotaxis over the course of the deal and receive a multi-hundred-million-dollar investment.

Lucid stock popped 30% Thursday. Uber shares were marginally higher.

The companies plan to launch the robotaxis in a major U.S. urban hub next year.

“We’re thrilled to partner with Nuro and Lucid on this new robotaxi program, purpose-built just for the Uber platform, to safely bring the magic of autonomous driving to more people across the world,” said Uber CEO Dara Khosrowshahi in a statement.

In an interview with CNBC, Lucid interim CEO Marc Winterhoff called the partnership an opportunity for the EV maker to compete in a “completely new” addressable market it has yet to penetrate.

Read more CNBC tech news

Nuro, which is backed by Google and the SoftBank Vision Fund, will provide “level 4 self-driving system” software for the cars. The technology can drive passengers under normal traffic and weather conditions without a human behind the wheel.

The partnership with Lucid and Nuro follows Uber’s alliance with Alphabet-backed Waymo. The two companies expanded their service to Atlanta and Austin, Texas, earlier this year.

Waymo’s vehicles are also considered Level 4, as defined by SAE Levels of Driving Automation. Tesla sells cars today equipped with Autopilot and FSD Supervised systems that fall into the level 2 category, requiring a human at the wheel. Elon Musk‘s EV company debuted a robotaxi pilot test in Austin in June.

Lucid said the 450-mile range for its Gravity vehicles should help cut costs and charge times while improving accessibility. Winterhoff said the program may eventually include future Lucid vehicles currently in development.

“We’ve been chosen because of our EV technology leadership,” he said.

Testing for the first prototype vehicle is underway on a closed circuit at Nuro’s Las Vegas-based proving grounds. In April, the startup raised $106 million in a funding round from T. Rowe Price, Fidelity, Tiger Global and Greylock.

The deal is a “blueprint for a robotaxi program that’s both commercially viable and globally scalable,” Nuro said in a statement to CNBC.

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Crypto theft is booming as criminals increasingly turn to physical attacks

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Crypto theft is booming as criminals increasingly turn to physical attacks

Digital currency thefts are on the rise.

Jakub Porzycki | Nurphoto via Getty Images

The value of cryptocurrencies stolen by criminals surged in the first six months of 2025 after a high-profile hack and a wave of physical attacks targeting crypto holders and their relatives.

So far this year, $2.17 billion has been stolen from crypto services — already eclipsing the $1.87 billion of funds stolen from platforms in 2024 — and this is expected to reach $4 billion by the end of 2025, according to a report published Thursday by blockchain analysis firm Chainalysis.

Overall, the combined value of digital tokens stolen from both crypto platforms and individuals hit more than $2.8 billion and is already approaching the $3.4 billion in crypto stolen last year.

The bulk of the funds stolen from services came from February’s cyberattack on Dubai crypto exchange Bybit, which saw North Korea-linked hackers make off with $1.5 billion. It’s estimated to be the largest crypto heist in history.

However, the rise in stolen crypto assets was also driven by a spike in attacks on individual crypto wallets. Personal wallets accounted for over 23% of total thefts, with attackers increasingly turning to physical violence and coercion to access funds, Chainalysis said.

In January, David Balland, a co-founder of crypto wallet firm Ledger, was kidnapped with his wife from their home in central France. Before they were freed, the attackers cut off Balland’s finger and sent footage of it to his fellow co-founder Eric Larcheveque demanding ransom money.

Separately, in May, the father of a crypto entrepreneur was taken in broad daylight by four men wearing ski masks. The kidnappers demanded a ransom of several million euros and cut off one of the man’s fingers. He was freed by police days later.

Eric Jardine, cybercrimes research lead at Chainalysis, told CNBC that the rise in crypto-related thefts was primarily being driven by increasing crypto adoption and price appreciation.

“Adoption means there are more services and users in the crypto ecosystem, making thefts more common. Price appreciation means that services and individuals in crypto have more USD value to lose, even if the total assets stolen are relatively constant over time,” Jardine said via email.

Read more CNBC tech news

Jardine suggested that the uptick in attacks on individual crypto holders could relate to the fact that crypto trading services are beefing up their security.

“If services become better at security, malicious actors will potentially move to targeting individual wallet holders and trade off a single large-scale heist in favor of a large number of smaller-scale victimizations,” he said.

Meanwhile, rising wealth accumulated through holdings of cryptocurrencies like bitcoin has resulted in a rise in crypto influencers flaunting their lifestyle on social media platforms.

Jardine stressed it was important not to blame the victims of physical crypto-related attacks, adding that “showy displays of wealth can quite obviously attract the attention of a bad actor when compared to a more modest outward facing lifestyle.”

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Crypto accumulator DeFi Development to expand globally by franchising its Solana treasury model

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Crypto accumulator DeFi Development to expand globally by franchising its Solana treasury model

Omar Marques | Sopa Images | Lightrocket | Getty Images

DeFi Development, a company vying to be the MicroStrategy of Solana, is expanding internationally through a franchise model.

The company plans to partner with others looking to operate their own Solana treasuries with DeFi’s support. In return, DeFi Development will retain an equity stake in each regional vehicle. The initiative will be branded DFDV Treasury Accelerator.

“Most crypto treasury vehicles today are following the MicroStrategy model. What excites us about DFDV is that they’re not just copying the playbook. They’re evolving it,” said Cosmo Jiang, general partner at investor Pantera Capital. “By combining validator infrastructure, capital markets innovation, and now international expansion via a global franchising model, DFDV is building something structurally different and ahead of the curve.”

Pantera was also an anchor investor in Bitmine Immersion Technologies, an ether treasury firm backed by Peter Thiel and chaired by Fundstrat’s Tom Lee. Kraken, Arrington, RK Capital and Borderless Capital may also support the franchise initiative through a potential investment and treasury and fundraising guidance, as well as infrastructure – which could include validator and custody solutions.

The move comes amid an explosion in companies pursuing crypto treasury strategies or merging with public entities to be able to emulate MicroStrategy’s success investing in bitcoin. In addition to Bitmine, the publicly listed betting platform SharpLink Gaming in May initiated an ether treasury strategy and appointed Ethereum co-founder Joseph Lubin as chairman of its board. Bit Digital recently exited bitcoin mining to focus on its ETH treasury and staking plans.

Solana is a five-year-old public blockchain platform that promises to provide fast transaction speeds as well as low fees for developers and users. Solana’s value is up 7% over the past year, with a nearly 10% gain within the past month, according to Coin Metrics.

In addition to accumulating Solana tokens, the company will acquire validators (the computers that help run the Solana network by verifying transactions) that can be used to “stake” the tokens. Through staking, users earn rewards for locking up SOL tokens on the network.

DeFi Development this week introduced its first SOL per share guidance, saying it plans to reach 1 SOL per share by 2028. With 857,749 SOL held currently and 18.8 million shares outstanding, its SOL per share stands at 0.0457, it said.

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