Balderton-backed AI fintech Cleo is exploring a push into stablecoins as clearer regulatory frameworks in the digital asset space emerge.
Stablecoins, which are a type of cryptocurrency pegged to a fiat currency such as the US dollar, have gained momentum in recent years as regulation in both the US and Europe has become clearer. Proponents say they could make international payments faster and undercut current remittance rates.
“We’re looking at how we can use stablecoins to help improve the banking system for our users,” CEO Barney Hussey-Yeo tells Sifted in an interview.
The stablecoin push would be a new frontier for Cleo, which was founded in 2016 and is most known for its AI assistant, a characterful chatbot which encourages users to build better financial habits. Cleo largely makes money by offering tiered subscription plans that unlock a credit-building card and cash advances alongside extra features for its AI assistant, depending on the plan.
It’s not clear exactly how the AI fintech would incorporate the technology. Hussey-Yeo says, however, while developing the product the company is making sure to keep up with the latest regulatory developments in the space.
“You’ve really got to get deep in the partnerships and regulatory,” he says. “And the regulatory is also moving very quickly and drastically different in every geography.”
Last month, US President Donald Trump signed legislation to create a regulatory regime for stablecoins dubbed the GENIUS Act. In the EU, the Markets in Crypto-Assets Regulation (MiCA) became law in 2023, which includes regulatory requirements on stablecoins.
The UK, however, has been slower to introduce a full regulatory regime than other jurisdictions, despite the country’s financial regulators publishing proposals on the technology in April. That’s led to some, such as former UK finance minister George Osbourne, to attack the current administration’s approach to crypto.
A throng of voices criticised the UK’s approach to digital assets on social media yesterday. Hussey-Yeo was one of them, writing on LinkedIn: “While others move forward, the UK is still debating definitions. The future won’t wait.”
