Treasury policy aligns with technology policy to promote long-term growth in the United States. … [+] (Photo by Robert Alexander/Getty Images)
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In an all-encompassing interview with Bloomberg, U.S. Treasury Secretary Scott Bessent emphasized the Trump administration’s strategic focus on maintaining low 10-year Treasury yields. This approach marks a significant shift in economic and fiscal policy, which previously focused almost exclusively on pushing the Federal Reserve to cut its benchmark interest rate.
U.S. Federal Reserve Board Chairman Jerome Powell has overseen 100 bps in Fed rate cuts since Sep … [+] 2024. 10-year Treasury yields have risen dramatically in the same period. (Photo by Drew Angerer/Getty Images)
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Since the Fed began cutting interest rates in September 2024, 10-year Treasury note yields spiked from 3.6% in September to almost 4.8% in January. In the month since the last Non-Farm Payrolls report and the change in administration, yields have rallied by 30 basis points (bps), signifying increased demand.
Since taking office in January, the Trump administration has taken significant steps to demonstrate a commitment to strengthening U.S. leadership in innovating financial technologies. His crypto-focused executive order aims to establish regulatory clarity for digital assets and secure America’s position as a global leader in the digital asset economy.
Sen. Tim Scott, R-S.C. led Senate Banking Committee hearings on the practice of debanking. Hours … [+] prior, the FDIC released documents cautioning banks to “pause” activities with crypto-related companies and people. (AP Photo/Ben Curtis)
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Copyright 2025 The Associated Press. All rights reserved
Over the past week, the Senate Banking Committee and the House Financial Services Committee held hearings on the aggressive enforcement actions and regulatory overreach during the Biden Administration. Commonly referred to as Operation Choke Point (OCP) 2.0, industry experts testified about how OCP 2.0 stifled innovation and growth in crypto and other “politically disfavored industries,” by providing little or no regulatory guidance and requests to “pause” banking activities with crypto companies, resulting in debanking.
Regulatory and legislative policy measures that foster innovation in digital financial technologies could work in tandem with fiscal policy to pave a path toward a more efficient U.S. financial system with positive implications for consumers.
The Role of Fiscal Policy
Secretary
Scott Bessent, US treasury secretary, right, during an interview at the Treasury Department in … [+] Washington, DC, US, on Thursday, Feb. 6, 2025. Bessent discussed a focus on 10-year note yields, not the Fed Funds rate. Photographer: Stefani Reynolds/Bloomberg
Bessent’s comments highlight the importance of long-term interest rates in driving economic stability and growth.While the mainstream financial press focuses much of its attention on the U.S. stock market, the 10-year Treasury note is a cornerstone for the whole U.S. financial system.
The 10-year Treasury note yield is the benchmark by which mortgage rates and other loans are priced. … [+] (Photo by Justin Sullivan/Getty Images)
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The benchmark reflects investors’ sentiments about the U.S. economy’s future and influences everything from mortgage rates to corporate borrowing costs. This relationship underscores the importance of maintaining low 10-year yields to support consumer spending and economic growth.
The 10-year note simultaneously serves as a bellwether for sentiment about general global stability. Backed by the full faith and credit of the U.S. government, U.S. bonds are considered a “flight to quality” investment. In times of global economic uncertainty or market volatility, investors sell riskier investments to buy U.S. Treasuries.
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Price vs Yield
Financial press tend to focus on the stock market as a proxy for U.S. economic health and stability. … [+] Bond investors would argue differently. (Photo by Michael M. Santiago/Getty Images)
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While stock investors talk about their assets in terms of price, bond mavens speak in terms of yield, which moves inversely to price. While this can be confusing for non-fixed income thinkers, bond markets, like all markets, respond to supply and demand.
Spend enough time on any trading floor and you’ll hear the most logical reason why any asset rallies (for 10-year notes, this means goes up in price, down in yield)– more buyers than sellers.
Innovation in Digital Financial Technologies: Catalysts for Efficiency
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President Donald Trump signs executive orders in the Oval Office. His cryptocurrency-focused EO was … [+] signed three days into his term. (Photo by Anna Moneymaker/Getty Images)
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During its first month, the Trump administration has taken significant steps to promote innovation in digital financial technologies. Blockchain technology and cryptocurrencies are at the forefront of FinTech innovation.
Blockchain, a decentralized ledger technology, offers transparency, security, and efficiency in transactions. Cryptocurrencies, built on blockchains, provide new vehicles for digital transactions and financial inclusion.
Correlation Between Innovation and the Bond Market
For many, the correlation between technology innovation and the bond market can be elusive. While experts in both fields can point to the benefits in their own domain, the path to mutual benefit can be longer in duration (bond pun most definitely intended).
Blockchain technology can enhance the transparency and security of financial transactions, reducing the risk of fraud and improving investor confidence. This increased confidence can lead to greater demand for U.S. Treasury securities, including the 10-year note, thereby supporting lower yields.
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The integration of blockchain and cryptocurrencies into the financial system can streamline payment processes, reducing transaction costs and settlement times. This efficiency can enhance liquidity in the financial markets.
USD₮ and USDC make up 86% of the rapidly growing stablecoin market. (Photo by Silas Stein/picture … [+] alliance via Getty Images)
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Stablecoin development has been one of the fastest growing areas in the field. By mid-2024, there were over 180 stablecoin projects, a 574% increase over three years. Over 98% of the $230 billion stablecoin market is USD-denominated
If USD-denominated stablecoin issuers were aggregated and classified as a single investor, they would be one of the top 15 investors in U.S. Treasuries, somewhere between India and Brazil.
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Increased confidence in the United States and the collateralization of stablecoins with U.S. Treasuries could both be catalysts for increased demand, driving prices higher and yields lower.
In turn, borrowing costs for consumers and corporations would decrease, making it more affordable to purchase homes and other goods and finance major capital expenditures.
The Long Game
Whether it’s technology or Treasuries, the ramifications of policy actions today may take time to manifest themselves. Like their namesake, 10-year Treasury notes reflect market expectations at that point in time. The uncertainty of such a long time horizon is reflected in the term premium, the extra compensation (higher yield) paid to investors for their investment in longer term bonds.
Standard rising yield curve. Context between the return and the maturity of a risk-free investment. … [+] Term premium is the excess return investors receive for the risk of holding longer-term bonds.
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Treasury Secretary Bessent’s comments are aligned with technology policy mandates and reflect a nuanced understanding of the interconnectedness of fiscal policy, financial innovation, and market dynamics.
Focusing on 10-year Treasury yields instead of the Fed Funds rate is a change in fiscal policy. … [+] Photographer: Michael Nagle/Bloomberg
By simultaneously encouraging digital financial technologies (cryptocurrency and blockchain) and implementing supportive fiscal policies, the Trump administration aims to create a favorable environment for economic growth driven by innovation. The focus on maintaining low 10-year Treasury yields is a strategic move that can benefit consumers, businesses, and investors alike. As we navigate the complexities of the modern economy, the integration of advanced technologies and sound policy measures will be key to sustaining long-term prosperity.
The up-and-coming fintech scored a pair of fourth-quarter beats.
Diversified fintech Chime Financial(CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.
Sweet music
Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.
Image source: Getty Images.
Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.
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On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.
In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”
Today’s Change
(12.88%) $2.72
Current Price
$23.83
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Key Data Points
Market Cap
$7.9B
Day’s Range
$22.30 – $24.63
52wk Range
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$16.17 – $44.94
Volume
562K
Avg Vol
3.3M
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Gross Margin
86.34%
Double-digit growth expected
Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.
It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.
ROCHESTER, N.Y. — Student athletes are now earning real money thanks to name, image, likeness deals — but with that opportunity comes the need for financial preparation.
Noah Collins Howard and Dayshawn Preston are two high school juniors with Division I offers on the table. Both are chasing their dreams on the field, and both are navigating something brand new off of it — their finances.
“When it comes to NIL, some people just want the money, and they just spend it immediately. Well, you’ve got to know how to take care of your money. And again, you need to know how to grow it because you don’t want to just spend it,” said Collins Howard.
What You Need To Know
High school athletes with Division I prospects are learning to manage NIL money before they even reach college
Glory2Glory Sports Agency and Advantage Federal Credit Union have partnered to give young athletes access to financial literacy tools and credit-building resources
Financial experts warn that starting money habits early is key to long-term stability for student athletes entering the NIL era
Preston said the experience has already been eye-opening.
“It’s very important. Especially my first time having my own card and bank account — so that’s super exciting,” Preston said.
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For many young athletes, the money comes before the knowledge. That’s where Glory2Glory Sports Agency in Rochester comes in — helping athletes prepare for life outside of sports.
“College sports is now pro sports. These kids are going from one extreme to the other financially, and it’s important for them to have the tools necessary to navigate that massive shift,” said Antoine Hyman, CEO of Glory2Glory Sports Agency.
Through their Students for Change program, athletes get access to student checking accounts, financial literacy courses and credit-building tools — all through a partnership with Advantage Federal Credit Union.
“It’s never too early to start. We have youth accounts, student checking accounts — they were all designed specifically for students and the youth,” said Diane Miller, VP of marketing and PR at Advantage Federal Credit Union.
The goal goes beyond what’s in their pocket today. It’s about building habits that will protect them for life.
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“If you don’t start young, you’re always catching up. The younger you start them, the better off they’re going to be on that financial path,” added Nihada Donohew, executive vice president of Advantage Federal Credit Union.
For these athletes, having the right support system makes all the difference.
“It’s really great to have a support system around you. Help you get local deals with the local shops,” Preston added.
Collins-Howard said the program has given him a broader perspective beyond just the game.
“It gives me a better understanding of how to take care of myself and prepare myself for the future of giving back to the community,” Collins-Howard said.
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“These high school kids need someone to legitimately advocate their skills, their character and help them pick the right space. Everything has changed now,” Hyman added.
NIL opened the door. Programs like this one make sure these athletes walk through it — with a plan.
With the introduction of the Employee Ownership Development Act , Illinois is poised to create the largest dedicated public investment vehicle for employee ownership in the country.
State Rep. Will Guzzardi’s bill, HB4955, would authorize the Illinois Treasury to deploy a portion of the state’s non-pension investment portfolio into employee ownership-focused investment funds.
That would represent a substantial investment of institutional capital in building wealth for Illinois workers and seed a capital market for employee ownership in the process. And because the fund is carved out of the state investment pool, it doesn’t require a single dollar of appropriations from the legislature.
Silver tsunami
The timing of the Employee Ownership Development Fund could not be more urgent. More than half of Illinois business owners are over 55 years old and are set to retire in the coming decade. When these owners sell their firms, financial buyers and competitors are often the default exit – if owners don’t simply close the business for lack of a buyer.
Each of these traditional paths risks consolidation, job loss and offshoring of investment and production. These are major disruptions to the communities that have long sustained these businesses. Without a concerted strategy, business succession is an economic development risk hiding in plain sight, and one that threatens local employment, supply chain resilience, and the tax base of communities across the country.
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Employee ownership offers another path. Decades of empirical research show that employee-owned firms grow faster, weather economic downturns better (with fewer layoffs and lower rates of closure), and provide better pay and retirement benefits.
The average employee owner with an employee stock ownership plan, or ESOP, has nearly 2.5 times the retirement wealth of non-ESOP participants. That comes at no cost to the employee and is generally in addition to a diversified 401(k) retirement account.
Because businesses are selling to local employees, employee ownership transitions keep businesses rooted in their communities. This approach can support a place-based retention strategy for state economic policymakers.
Capital gap
Despite the remarkable benefits of employee ownership and bipartisan support from policymakers, a lack of private capital has impeded the growth of employee ownership: In the past decade, new ESOP formation has averaged just 269 firms per year.
Most ESOP transactions ask the seller to be the bank, relying heavily on sellers to finance a significant portion of the sale themselves, often waiting five to 10 years to fully realize their proceeds. Compared to financial and strategic buyers who offer sellers their liquidity upfront, employee ownership sales are structurally uncompetitive in the M&A market.
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A small but growing ecosystem of specialized fund managers has begun to fill this gap. They deploy subordinated debt and equity-like capital to provide sellers the liquidity they need, while supporting newly employee-owned businesses with expertise and growth capital (see for example, “Apis & Heritage helps thousands of B and B Maintenance workers become owners”).
This approach is a recipe for scale, but the market remains nascent and undercapitalized relative to the generational pipeline of businesses approaching succession. To mature, the market needs anchor institutional investors willing to commit capital at scale.
State treasurers and other public investment officers could be those institutional investors. Collectively managing trillions of dollars in state assets, they have the portfolio scale, time horizons and fiduciary obligation to earn market returns while advancing state economic development.
Illinois’ blueprint
Just as federal credit programs helped catalyze the home mortgage and venture capital industries in the 20th century, state treasurers and comptrollers now have the opportunity to help build the employee ownership capital market in the 21st.
Illinois shows us how. The state’s Employee Ownership Development Act is modeled on proven investment strategies previously authorized by the legislature and pioneered by State Treasurer Michael Frerichs. The Illinois Growth and Innovation Fund and the FIRST Fund each ring-fence 5% of the state investment portfolio for investments in private markets and infrastructure, respectively, deployed through professional fund managers. Both have generated competitive returns while catalyzing billions of dollars in private co-investment in Illinois.
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The Employee Ownership Development Fund would apply that same architecture to employee ownership. The Treasurer would invest indirectly by capitalizing private investment funds deploying a range of credit and equity. The funds, in turn, would invest a multiple of the state’s commitment in employee ownership transactions.
The employee ownership field has matured to a point that is ready for institutional capital. The evidence base is robust. The fund management ecosystem is growing. And the business succession pipeline is larger than it will be for generations.
Yet the field still lacks the publicly enabled financing interventions that have historically built new markets in this country. State treasurers, city comptrollers and other public investment officers have the tools and resources at their disposal to provide that catalytic, market-rate investment to enable the employee ownership market to scale.
Julien Rosenbloom is a senior associate at the Lafayette Square Institute.
Guest posts on ImpactAlpha represent the opinions of their authors and do not necessarily reflect the views of ImpactAlpha.
