Atom Bank, a digital "challenger bank" in the U.K., has agreed to a deal with the rapper and producer Will.i.am to act as a consultant, with an option to acquire a multimillion-dollar stake in the startup.
The alliance is an example of how consumer-facing fintech ventures are trying to court millennials, a generation that grew up with the Internet and came of age during the financial crisis and the rise of the smartphone.
According to a published report, the deal gives Will.i.am an option to acquire up to 3.55 million shares in Atom Bank at a price of 1.15 pounds (about $1.43) per share during a three-year period. Atom in 2015 became the first app-only bank to be granted a U.K. banking license. BBVA’s investment arm also owns a 29.5% stake in Atom.
Will.i.am will advise the bank on branding and send out social media posts, according to the report. He's currently a judge on the British talent show "The Voice UK." In 2014, 3D Systems, a maker of 3-D printers, hired him as its chief creative officer.
The San Francisco-based firm's Anchorage Digital Trusted Liquidity and Settlement network, better known as Atlas, will allow clients to settle a range of cryptocurrency transactions.
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The FDIC board debated and ultimately withdrew two separate proposals to address asset managers' control over banks, but acting Comptroller of the Currency Michael Hsu said he couldn't support either and called for more research and debate about how asset managers' control over banks impacts safety and soundness.
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Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.