FinTech
The application of technology to enhance financial services, including payments and asset management.
What is FinTech?
FinTech companies leverage software, AI, and blockchain to automate banking, lending, and investments, with examples like Stripe for payments and Robinhood for trading. In 2025, global FinTech investments surpass $200 billion, focusing on six categories: banking tech, lending, payments, wealth management, InsurTech, and RegTech.
In digital assets, FinTech drives innovations like DeFi platforms on Ethereum, enabling tokenized assets and smart contracts for decentralized trading. It promotes financial inclusion by serving unbanked populations via mobile apps, though it faces AML/CFT regulatory challenges from bodies like the OCC.
Related Terms
Arbitrum One Chain
An optimistic rollup Layer 2 for Ethereum, leading in DeFi TVL with advanced governance features.
51% Attack
A 51% attack occurs when a single entity or group controls over 50% of a blockchain’s computing power or stake, allowing them to manipulate the network’s transaction ledger.
Sequencer of Layer 2
A program or node in a Layer 2 or Rollup blockchain network that orders transactions before they are processed or submitted to the Layer 1 blockchain.
Perp DEX
A perp DEX is a decentralized exchange specializing in perpetual futures contracts for digital assets, enabling leveraged, non-expiring trades directly on-chain without intermediaries.
Option Value (MSTR)
The premium paid for an option contract, reflecting intrinsic and time value.
Optimistic Rollup
An Optimistic Rollup is a layer-2 scaling solution for Ethereum that processes transactions off-chain, assumes they are valid, and posts compressed data to the main chain, relying on fraud proofs to ensure correctness.