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While the announcement signs a new encouraging validation that building programmable financial services with stablecoins is now possible, there are still improvements needed before enterprises can fully adopt the solution for their B2B transactions.

The Privy software operates on stablecoins developed by external issuers with no control over their 1:1 parity, leaving the counterparty risk to the corporate user. Converting to fiat isn't even immediate but requires users to jump through hoops: they must first integrate Privy to a third-party off-ramp provider via SDK/API; they must then complete KYC before linking bank accounts; only then Privy can sign and send crypto to the provider that then converts stablecoins to fiat and has the bank pay out actual money.

This presents a long way to go for immediate action as soon as the Stripe-Privy technical  integration is complete.

UniCredit's acquisition of Vodeno and Aion Bank marks a significant shift in embedded finance. This move brings in-house a suite of Banking-as-a-Service products and 200 skilled professionals, positioning UniCredit to offer tailored financial solutions and strengthen customer relationships.

It reflects a broader trend of banks becoming comprehensive embedded finance providers, responding to fintech challenges by controlling key technological platforms. This strategy allows for greater innovation, flexibility, and client intimacy.

Further analysis and details are available here 

It is very important to approach currency conversion throughout the entire end-to-end process, from the moment the treasurer has to decide the best options for an FX transaction, passing through the hedging plan, down to the execution of the currency pair conversion  .

A solution that operates as a decision support system that automates key activities and keeps the treasurer always up-to-date is the foundation of managing (and mitigating) FX risk.

This announcement validates my prediction that we will see banks offering digital payment hubs for all types of payments transactions processing and connectivity.

These scalable systems will provide the flexibility to merge bank internal legacy applications while decommissioning and replacing old systems by consuming microservices-based advanced and modern applications via APIs.

Artificial intelligence will process, convert, enrich, validate, reconcile and route any type of financial transaction using workflows dynamically invoked as needed.

I believe this announcement deserves attention for three main reasons:

1- IntesaSP is a bank that has always placed innovation at the forefront of its initiatives. If the bank invests in SCF it means that SCF is it's increasing its traction in the market.

2- Intesa was traditionally a "make" institution. This announcement is a testament that the bank is steadily moving to a more flexible- and modern- "partner" model.

3- Kyriba is not a "usual suspect" among the SCF players, so this partnership is a testament that the company has made significant inroads in a relatively crowded market.

@Johnny Owens thank you for your funny comment.

Very appropriate to make a smile in the day .

Great news that validates my post on New Credti Scoring Models (https://www.finextra.com/blogposting/14859/new-credit-scoring-models-ahead)

Just finished reading this article that validates my point.

https://yourstory.com/2019/02/how-artificial-intelligence-backed-fintechs-are-so-ip7ub89fzf

The possibility of adopting a single standard to connect with multiple banks is a great advantage to merchants that can provide instant loan approvals for customers at the point of sale.

The benefit of the API will be even greater once it will be made available also to corporate users—especially from small and midsize enterprises (SMEs), which are in constant need of access to innovative sources of finance to support their daily operations.

The opportunity for banks to offer more flexible and immediate funding options to SMEs is becoming an urgent strategic matter, as clearly described in another article from this week that states that “banks are failing to address opportunities in the financing of SMEs and conceding that potentially lucrative ground to disruptive challengers.”

The offering is very compelling for business-to-business platforms, as companies will be able to make and accept payments in different forms and currencies.

The next expected step is an exchange mechanism that converts cryptocurrencies into fiat currencies and vice-versa, giving the freedom to trade more flexibly and across multiple payment rails.