The largest banks are moving ahead with stablecoins. JPMorganChase was first with JPM Coin, which is pegged to the U.S. dollar and used to process $1 billion of payments daily. Bank of America has said it’s planning to offer a fiat-backed stablecoin. Citi already has digital tokens it uses to transfer money internally across geographies; it is said to be considering issuing its own stablecoin as well. Many smaller banks laid plans for bitcoin custody a few years ago; those plans were kiboshed by regulators, and the banks remain gun-shy. Executives at Pathward and KeyBank both said their customers are asking about digital assets. “We’ve seen a lot of demand for stablecoin, especially as it relates to business to business and business to consumer payments, especially cross border use cases,” said Will Sowell, divisional president of banking as a service at Pathward Bank. “Our approach has been to build on ramps and off ramps for that. As a sponsor bank, there’s a large opportunity to participate.” KeyBank’s clients have expressed interest in a variety of digital currencies. Mostly they want KeyBank to hold those assets, according to Bennie Pennington, senior vice president, embedded finance at KeyBank. Leaders at Royal Business Bank and Piermont Bank struck a more cautious note. “We are monitoring the digital asset space,” said Rodrigo Suarez, chief banking officer at Piermont Bank. “We’re not necessarily planning anything specific right now. We need to make sure that what we’re doing is relevant, but not necessarily just following a trend.” Gary Fan, chief operating officer at Royal Business Bank, also said his bank is monitoring the digital asset space. “We have to see how the regulatory agencies play out,” Fan said. “We do have the regulatory agencies above us, and more or less those people are uncomfortable. It’s very, very difficult for us to enter new areas like that. For us specifically, we’re looking at it, but it’s probably not one of the top one or two priorities that we’re going to work on in the next 12 months.” Dara Tarkowski, managing partner at Actuate Law, said a wait-and-see approach makes sense from a legal perspective. “When you have a lack of a true regulatory framework, and you still have states breathing down your neck, banks need to always go to find their own true North Star,” she said. Banks need to go back to safety and soundness principles, and create policies and procedures that will safeguard customers, she said.
Morgan Stanley launches NIL “name, image and likeness” financial education program to explore some of the complex planning questions that come with NIL pay to student athletes
Morgan Stanley Global Sports & Entertainment and “name, image and likeness” technology and management firm TheLinkU are teaming up with National Collegiate Athletic Association conferences and university athletic departments to deliver financial education to student athletes. The program is launching as the compensation for athletes ranging from thousands of dollars to several million is leading to more efforts to boost financial literacy and explore some of the complex planning questions that come with NIL pay. And the rules governing that compensation — which has already shaken up college sports — may soon look much different, based on a current lawsuit. The involvement of Morgan Stanley was “really important for me and for the athletes, because it gives instant credibility,” since both the wealth management company’s unit and TheLinkU aim to give the players “the tools to be successful,” said founder Austin Elrod. His firm works with athletes, athletic departments and colleges to maximize their NIL through identification of opportunities, contract management technology and other services. The education could turn into client relationships for the Morgan Stanley advisors and executives coaching the students if “the athletes determine that they would like to take the next steps,” Elrod said. NIL payments have created something of a “wild wild west” for athletes who have, in some cases, been receiving large checks since the NCAA legalized the compensation in 2021, according to Pat Brown, a wealth manager in Creative Planning and the founder of Financial Literacy for Student Athletes. At the same time, the athletes are fielding interest from so-called agents or NIL firms demanding much higher commissions from them than those received by agents representing professional sports players, he noted. Brown, a former NCAA football player who became an advisor, speaks with college athletes and coaches them on financial topics on a pro bono basis. An environment of growing overtures to the players from licensed experts and potential bad actors alike “forces the younger student-athlete to do their due diligence, sooner rather than later,” Brown said. And they have valid concerns about what will happen if they, like most NCAA athletes, can’t play their sport professionally, he added. To that point, some aspects of NIL could see dramatic shifts in the rules for the compensation based on the pending settlement in the House v. NCAA case, a lawsuit filed by former student athletes over the revenue colleges receive from the broadcast rights to the sports. As many as 390,000 current and former athletes could get back payments amounting to $2.77 billion, and every Division I school could then share up to $20.5 million in media revenue with athletes from their colleges, starting on July 1. Any future NIL deals over $600 would need approval from a third-party clearinghouse deciding whether the contracts represent the “fair market value.” But the agreement between the parties hasn’t received final approval from the judge in the case. And legislative action by Congress or an executive order from the White House could alter the guidelines further. In that murky landscape, the more than 300 Morgan Stanley advisors in the sports and entertainment unit could offer the athletes some valuable financial education and advice. And that will be especially true after the terms of the House settlement will “allow billions of dollars to flow to student athletes from institutions,” said Elrod. Currently, the firms are planning advisors’ trips to speak with teams from three conferences — the Big 12, the Mid-American Conference (MAC) and Conference-USA — with more possible agreements on the way. Regardless of the complex negotiations ongoing over possible limits on NCAA rosters or future laws, advisors should educate themselves about the ramifications of the settlement and how working with college athletes is different from planning for pro sports players, he said.
Study shows GPT-style models have a fixed memorization capacity of approximately 3.6 bits per parameter and training on more data forces models to memorize less per-sample is helping to reduce privacy risk
A new study from researchers at Meta, Google DeepMind, Cornell University, and NVIDIA finds that GPT-style models have a fixed memorization capacity of approximately 3.6 bits per parameter. One key takeaway from the research is that models do not memorize more when trained on more data. Instead, a model’s fixed capacity is distributed across the dataset, meaning each individual datapoint receives less attention. Jack Morris, the lead author, explained via the social network X that “training on more data will force models to memorize less per-sample.” These findings may help ease concerns around large models memorizing copyrighted or sensitive content. If memorization is limited and diluted across many examples, the likelihood of reproducing any one specific training example decreases. In essence, more training data leads to safer generalization behavior, not increased risk. To precisely quantify how much language models memorize, the researchers used an unconventional but powerful approach: they trained transformer models on datasets composed of uniformly random bitstrings. Each of these bitstrings was sampled independently, ensuring that no patterns, structure, or redundancy existed across examples. Because each sample is unique and devoid of shared features, any ability the model shows in reconstructing or identifying these strings during evaluation directly reflects how much information it retained—or memorized—during training. This method allows the researchers to map a direct relationship between the number of model parameters and the total information stored. By gradually increasing model size and training each variant to saturation, across hundreds of experiments on models ranging from 500K to 1.5 billion parameters, they observed consistent results: 3.6 bits memorized per parameter, which they report as a fundamental measure of LLM memory capacity. The study also examined how model precision—comparing training in bfloat16 versus float32—affects memorization capacity. They observed a modest increase from 3.51 to 3.83 bits-per-parameter when switching to full 32-bit precision. However, this gain is far less than the doubling of available bits would suggest, implying diminishing returns from higher precision. The paper proposes a scaling law that relates a model’s capacity and dataset size to the effectiveness of membership inference attacks. These attacks attempt to determine whether a particular data point was part of a model’s training set. The research shows that such attacks become unreliable as dataset size grows, supporting the argument that large-scale training helps reduce privacy risk. By introducing a principled and quantifiable definition of memorization, the study gives developers and researchers new tools for evaluating the behavior of language models. This helps not only with model transparency but also with compliance, privacy, and ethical standards in AI development. The findings suggest that more data—and not less—may be the safer path when training large-scale language models.
Theta Lake’s solution can detect and report the presence of AI assistants in meetings, identify confidential data exposed in AI content and detect missing disclaimers and disclosures in AI content
Theta Lake’s AI Governance and Inspection Suite is designed to address these challenges and go beyond the scoping and access control guardrails built into the leading AI tools. Specifically, detecting and reporting the presence of AI assistants in meetings; providing a flexible way to decide which summaries are captured and how they are retained; and the ability to specifically inspect AI generated content for conduct, compliance, or data protection risks that may require supervision action, user governance, remediation, and / or adjustment of data access, scoping and related guardrails in the AI tools themselves. Theta Lake’s suite of modules are purpose-built into Unified Communications & Collaboration integrations and their AI suites. This makes it seamless to adopt both the UCC suite, its AI capabilities, and Theta Lake’s additional governance and inspection capabilities, all without complex service engagements or lengthy deployment models. The Theta Lake AI Governance and Inspection Suite has three core modules including: AI Assistant & Notetaker Detection Module; Zoom AI Companion Inspection Module and Microsoft Copilot Inspection Module. The Theta Lake AI Governance and Inspection Suite and modules enable organizations to: Identify confidential data exposed in AI content; Detect missing disclaimers and disclosures in AI content; Recognize AI tools used in communication and collaboration interactions; Insert user notifications into conversations around the use of AI tools; Remediate AI content in conversations; Notify, send training info, and document / prove notifications for compliance; Selective capture, analysis, and retention options for AI content; Seamlessly deploy in parallel with their UCC tools.
Report: Stablecoin growth could increase volatility of US treasuries and may trigger less demand for U.S. Treasuries from banks
The rising adoption of stablecoins could reportedly increase the volatility of U.S. Treasury Securities with short-term maturities. Some analysts say that as these dollar-pegged cryptocurrencies grow, their volatility could spread to the bills market. Any disruption in the stablecoin market could trigger liquidations that could drive down Treasury prices, they say. In addition, if money moves from bank deposits to the stablecoin market, there could be less demand for U.S. Treasuries from banks. Other analysts counter that an increase in stablecoin activity would increase the number of buyers of T-bills, which are considered to be cash-equivalent securities, around the world. The stablecoin bill that is making its way through Congress would require stablecoins to be backed by liquid assets like T-bills. Already, two stablecoin issuers — Tether and Circle — hold a collective total of $166 billion in U.S. Treasuries. U.S. Treasury Secretary Scott Bessent has said that a codification of federal rules for stablecoins could boost demand for U.S. debt. The reserves that help maintain the peg of the coin are often a mix of assets that can be exposed to shocks. If there are fluctuations, stablecoin issuers must sell or rebalance those holdings to keep the peg or meet redemptions if and when they are demanded by holders. If an issuer has to sell assets in response to a swell in redemptions, losses may ensue.
Plaid and Cross River partner to launch Request for Payment featuring instant confirmation and final settlement; seamless bank authorization via Plaid Link; built-in account verification, balance checks and bank eligibility; and a single integration to intelligently route payments across available rails
Plaid now enables instant pay-ins as well as instant payouts via its flexible multi-rail payment platform, Plaid Transfer. The financial data network has added support for real-time pay-ins via Request for Payment (RfP) on the RTP® Network to Instant Payments on Plaid Transfer. RfP enables businesses to request a payment from a customer in real time, according to the release. Powered in collaboration with Cross River, Plaid’s RfP offers instant confirmation and final settlement; seamless bank authorization via Plaid Link; built-in account verification, balance checks and bank eligibility; and a single integration to intelligently route payments across available rails, according to the release. “For merchants, instant bank payments mean getting paid faster, reducing payment failures and eliminating the operational drag of reconciling delayed or returned ACH transactions, while also delivering a better customer experience,” the release said. “It’s a win-win for both sides of the transaction.” One of the first adopters of Plaid’s RfP capabilities is online car retailer Carvana, which is using it to streamline vehicle purchases, according to the release. “With real-time payments through Plaid and Cross River, we’re removing one more layer of friction, helping customers move through the process even faster and, in some cases, even schedule same-day delivery,” Matt Dundas, vice president of finance at Carvana, said in the release. RfP enables faster, more secure and cost-effective bill payments, according to the PYMNTS Intelligence and The Clearing House collaboration, “The Real-Time Payments World Map.” The report found that RfP offers consumers added transparency and convenience, while providing billers with accelerated cash flow and payment validation without exposing sensitive bank data. When Plaid added instant payouts to Plaid Transfer in April 2023, the company said it was doing so to meet consumers’ demands for faster payments. “At Plaid, we believe that you should be able to access your money when and where you need it,” the company said at the time in a press release. “More importantly, the experience should not come at a steep cost. That is why we built Instant Payouts — a real-time, multi-rail payout solution to send funds instantly, 24/7.”
Walmart to launch credit cards embedded inside the OnePay app, powered by Mastercard and issued by Synchrony
The credit card programme is expected to launch this fall, with the experience embedded inside the OnePay app and powered by Mastercard’s global payments network. The card, issued by Synchrony, will be made available to millions of Walmart customers and to consumers across the US. OnePay currently serves millions of customers nationwide and offers a suite of banking, credit, and payments products — including cashback debit, high-yield savings, installment loans, a digital wallet, and domestic and international peer-to-peer payments. In partnering with Synchrony and Mastercard, OnePay will add credit cards to its growing portfolio, offering both a general-purpose card and a private label card, which will be exclusively for Walmart purchases. John David Rainey, EVP and chief financial officer, Walmart, says: “Today’s announcement represents one more way we’re serving our customers the way they want to be served, providing an upgraded digital financial services experience with even greater choice and value.” As part of the program, OnePay and Synchrony will introduce both a general-purpose card, which will serve as the program’s signature card and be available to use anywhere Mastercard is accepted, and a private label card, which will be exclusively for Walmart purchases. The credit card functionality will be embedded inside the OnePay app, offering millions of Walmart’s U.S. customers a sleek, intuitive digital experience and the ability to access OnePay’s suite of financial services products. “Our goal with this credit card program is to deliver an experience for consumers that’s transparent, rewarding, and easy to use,” said Omer Ismail, Chief Executive Officer, OnePay. “We’re excited to be partnering with Synchrony to launch a program at Walmart that checks each of those boxes and will help serve millions of people.” Synchrony will leverage its deep lending expertise and innovative digital capabilities to deliver financial flexibility through a seamless experience. Following the initial launch and reserve costs, the program is expected to drive loyalty and sales at attractive risk-adjusted returns and be accretive to the company’s long-term financial performance.
Walmart to launch credit cards embedded inside the OnePay app, powered by Mastercard and issued by Synchrony
The credit card programme is expected to launch this fall, with the experience embedded inside the OnePay app and powered by Mastercard’s global payments network. The card, issued by Synchrony, will be made available to millions of Walmart customers and to consumers across the US. OnePay currently serves millions of customers nationwide and offers a suite of banking, credit, and payments products — including cashback debit, high-yield savings, installment loans, a digital wallet, and domestic and international peer-to-peer payments. In partnering with Synchrony and Mastercard, OnePay will add credit cards to its growing portfolio, offering both a general-purpose card and a private label card, which will be exclusively for Walmart purchases. John David Rainey, EVP and chief financial officer, Walmart, says: “Today’s announcement represents one more way we’re serving our customers the way they want to be served, providing an upgraded digital financial services experience with even greater choice and value.” As part of the program, OnePay and Synchrony will introduce both a general-purpose card, which will serve as the program’s signature card and be available to use anywhere Mastercard is accepted, and a private label card, which will be exclusively for Walmart purchases. The credit card functionality will be embedded inside the OnePay app, offering millions of Walmart’s U.S. customers a sleek, intuitive digital experience and the ability to access OnePay’s suite of financial services products. “Our goal with this credit card program is to deliver an experience for consumers that’s transparent, rewarding, and easy to use,” said Omer Ismail, Chief Executive Officer, OnePay. “We’re excited to be partnering with Synchrony to launch a program at Walmart that checks each of those boxes and will help serve millions of people.” Synchrony will leverage its deep lending expertise and innovative digital capabilities to deliver financial flexibility through a seamless experience. Following the initial launch and reserve costs, the program is expected to drive loyalty and sales at attractive risk-adjusted returns and be accretive to the company’s long-term financial performance.
Fifth Third expects substantial improvements in next six months for its customers’ Zelle experience and in SmartShield in-app security tool that “gamifies” digital safety
Fifth Third’s chief strategy officer and head of consumer products, Ben Hoffman has no doubt Fifth Third Bank’s peers and competitors are mulling some of the same mobile app features and enhancements as the lender. “There is more convergence in bank strategy than there is in bank execution,” said Hoffman. “It’s really about your ability to execute” at a sustained pace, he said. For Fifth Third, that means leaning on dedicated staff, operating rhythms and experience, and systems set up to support success, he said. The bank’s app offers services like direct deposit switching and card controls, and features tools like SmartShield, its in-app security tool that “gamifies” digital safety. The lender continues to work on enhancements to the app, which about 2.4 million bank customers use to handle everyday banking tasks. In Hoffman’s eyes, the bank’s approach stands out in part because of its focus on quality over quantity. “We focus on quality where it matters, with the core theory being that, for the most part, our customers want banking to fade into the background,” he said. Rather than stuffing apps with features or equipping chatbots with an ever-growing roster of skills, “it needs to just work to support real lives.” When Fifth Third releases a new feature in the mobile app, automated monitoring is set up to ensure the process works well; if there are defects, point people are contacted and troubleshooting begins. Product managers join release calls, no matter the hour, he noted. It’s an “intentionally unsexy” approach, he said. The bank’s technology and communications spending has ticked up in recent years, from $416 million in 2022, to $474 million in 2024, with increased investments in technology modernization being one of the drivers.
Goldman Sachs’s co-head of private wealth wealth boss says private wealth clients are “very interested” in private credit and in the pre-IPO market
Goldman Sachs’s co-head of private wealth Robert Mullane who co-leads the unit with Chris French said Goldman has been upping its wealthy clients’ exposure to private markets. In January, it set up a capital solutions group to grow its private credit business, while expanding the alternatives investment team in its asset and wealth management division. Mullane says Goldman’s private wealth clients are “very interested” in private credit. They can access this through evergreen, semi-liquid funds Goldman has available via its asset management business and partnering with external managers. Clients are also interested in the pre-IPO market, Mullane adds, even though this has been a “very tough place to be” over the past few years. Goldman has given its ultra rich clients exclusive access to buzzy startups, such as $90bn payments and billing firm Stripe and British banking unicorn Revolut. “It’s still early in determining whether the IPO market will come back to the levels that it has done historically. But certainly we think there are great businesses to own both on the private side and on the public side,” he says.