Technologies
From Acquisition Talks to Rivals: How Stripe and Airwallex’s Paths Diverged
Once on the verge of a $1.2 billion acquisition by Stripe, Airwallex founder Jack Zhang rejected the deal to pursue a long-term vision, now positioning the company as a formidable rival in the global payments infrastructure space.
Jack Zhang, a 34-year-old entrepreneur who had been leading his startup for three and a half years, found himself in a pivotal meeting with Michael Moritz, a prominent investor from Sequoia Capital. Invited to Moritz’s San Francisco residence, which offered stunning views of the Golden Gate Bridge, Zhang was presented with an offer: Stripe intended to acquire Airwallex for $1.2 billion. At that moment, Airwallex was generating approximately $2 million in annualized revenue, making the valuation seem incredibly lucrative. Moritz emphasized that Patrick Collison, Stripe’s founder, was a visionary leader, suggesting the acquisition could lead to extraordinary growth. Zhang spent two weeks in San Francisco grappling with the decision, eventually agreeing to the deal.
Yet, he soon flew back to Australia, nearly 8,000 miles away. Reflecting on the decision, Zhang explained, ‘I had to delve into my core motivations for building Airwallex. I was only three and a half years into the venture, which had grown exponentially in 2018. I had just begun to experience the thrill of entrepreneurship, which is what I had always dreamed of.’
Two of his co-founders opposed the acquisition, which influenced his choice. However, Zhang cited a clearer moment of clarity when he looked at the whiteboard in his office. The unfinished vision remained: to create financial infrastructure enabling businesses to operate globally as if they were local entities.
This decision appears increasingly justified. Airwallex now reports over $1.3 billion in annualized revenue, growing 85% annually, and processes nearly $300 billion in transaction volume. Zhang attributes this success to the deliberate challenges they faced.
Zhang’s journey began in Qingdao, China, and he moved to Melbourne at 15 with minimal English, living with a host family. After his family’s financial struggles, he worked multiple jobs to fund his computer science degree at the University of Melbourne, including bartending, dishwashing, gas station shifts, and farm work. He later worked in trading code development at an Australian investment bank, a role that paid well but lacked personal fulfillment.
Discover Your Next Investor or Portfolio Startup at Disrupt
Secure your next funding round, hire key talent, and seize emerging opportunities at TechCrunch Disrupt 2026. Join 10,000+ founders, investors, and tech leaders for three days of 250+ tactical sessions, valuable connections, and groundbreaking innovation. Register now to save up to $410.
Discover Your Next Investor or Portfolio Startup at Disrupt
Secure your next funding round, hire key talent, and seize emerging opportunities at TechCrunch Disrupt 2026. Join 10,000+ founders, investors, and tech leaders for three days of 250+ tactical sessions, valuable connections, and groundbreaking innovation. Register now to save up to $410.
Before founding Airwallex, Zhang launched approximately 10 ventures, including a magazine at 14, a real estate development firm, import-export businesses dealing in wine and olive oil between Australia and Asia, textiles in the opposite direction, and a burger chain.
The concept for Airwallex emerged while Zhang ran a Melbourne coffee shop. When attempting to pay suppliers in Brazil, Indonesia, and Guatemala, co-founder Max Li observed payments vanishing into correspondent banking systems, often flagged or frozen by U.S. intermediary banks enforcing OFAC sanctions. ‘This prompted me to investigate correspondent banking and SWIFT systems to build our own global money movement network,’ Zhang noted.
That vision has scaled significantly. Airwallex now holds nearly 90 financial licenses across 50 markets, far exceeding Stripe’s estimated half. Acquiring these licenses required immense effort; in Japan, it took seven years. In some emerging markets, the company acquired shell companies with outdated licenses and rebuilt their technology from scratch.
‘You can’t just vibe-code an integration with Mexico’s central bank,’ Zhang remarked. ‘Access requires a secure room and biometric scans.’ These licenses are not merely regulatory formalities. In Japan, for example, Stripe and Square must transfer funds immediately to merchants’ bank accounts, whereas Airwallex, holding a fund transfer operator license, retains funds within its ecosystem. This allows customers to issue bank accounts, cards, and spend locally without funds leaving the platform.
The foreign exchange advantages are significant. A U.S. merchant settling transactions in Australian dollars avoids the 2% to 3% conversion fees typically charged by processors like Stripe to move funds back to U.S. dollars. Instead, they can use local balances to pay vendors, manage payroll, and cover digital marketing at interbank rates.
‘You no longer operate like a traditional U.S. company,’ Zhang explained. ‘You function as a global entity without the need to physically establish offices worldwide.’ This strategic approach, which Zhang calls the ‘path of maximum resistance,’ has created competitive barriers. ‘It took us six and a half years to reach $100 million in annual recurring revenue,’ Zhang stated. ‘But after that, it took just over three years to hit a billion.’ The competitive logic, in his telling, is clear.
Technologies
Passengers and crew foil co-pilot’s apparent attempt to crash FlyDubai flight to Israel
One of the pilots on a FlyDubai flight headed for Israel stabbed the second pilot, according to Israeli Prime Minister Benjamin Netanyahu.
On-duty flight crew and passengers managed to foil a pilot’s apparent attempt to crash a FlyDubai flight, after reports emerged of a fight in the cockpit.
The incident on flight FZ1073 from Dubai to Tel Aviv happened when a co-pilot stabbed a pilot, according to Israeli Prime Minister Benjamin Netanyahu, who praised the victim’s quick thinking.
“Despite being stabbed and seriously injured, he fought back, resisted, opened the cockpit door, and enabled passengers and crew to overpower the attacker — preventing a catastrophic mid-air disaster. He saved the lives of 174 people, including Israeli citizens and other nationals,” Netanyahu wrote in a post on X.
FZ1073 was diverted to the Tabuk airport in Saudi Arabia, the airline said, after being successfully secured and diverted by flight crew.
FlyDubai in a statement said that an “altercation” occurred on the flight deck of the plane, but did not mention a stabbing.
However, the airline added that the underlying reasons and motives for the clash is currently unknown, urging all parties to refrain from speculation.
The injured pilot was identified by Netanyahu as Indian national Smit Machchhar. No details have been released on the identity of the attacker, except that he was being interrogated by Saudi authorities.
The Indian embassy in Riyadh said on X that Machchhar is in a hospital in Tabuk, and is reported to be in stable condition.
The Israeli Prime Minister also identified the passenger who broke into the cockpit as Yaniv Hayun, calling him a “hero” and adding he deserved “a global medal of honor.”
Flight data from tracking site FlightRadar24 showed that the plane had experienced extreme altitude fluctuations before broadcasting a “general emergency” squawk code.
FZ1073 had dropped from over 14,000 feet in just 29 seconds, and FlightRadar24 also added that vertical speeds ranging from approximately -30,000 to +10,000 feet per minute were observed from the transponder data.
For context, vertical speeds during normal operations rarely exceed plus or minus 4,000 feet per minute, it added.
Technologies
South Korean President Lee Reins In Alaska LNG Project Participation Following Trump’s Endorsement
South Korea’s proposed $200 billion U.S. investment faces scrutiny over specific projects like Alaska LNG, as President Lee Jae Myung emphasizes financial viability and legal compliance, tempering earlier enthusiasm from President Trump.
South Korea’s proposed $200 billion investment in the U.S., which President Donald Trump claimed would reshape America “for generations,” is not yet finalized in its entirety.
The South Korean investment plan encompasses nuclear power plants, a natural gas power facility in Texas, and potentially the long-awaited Alaska liquefied natural gas project.
Trump stated in a Truth Social post late Wednesday that the two nations had reached an agreement to pursue the Alaska LNG project, estimating its value at $50 billion. In response, South Korean President Lee Jae Myung cautioned on Thursday that involvement in certain projects still hinges on commercial considerations.
Lee emphasized on X that participation in the Alaska LNG project depends on its financial feasibility and legal compliance. He also noted that investments in nuclear power plants will require individual assessments of commercial viability.
The U.S.-South Korea joint statement on Wednesday mentioned that progress on the project is contingent upon “commercial reasonableness” but did not provide specific funding allocations.
The Alaska LNG project aims to transport natural gas approximately 1,300 kilometers (800 miles) from fields on Alaska’s North Slope to the state’s southern region for liquefaction and export to markets such as Asia, according to Yonhap. The initiative has long faced scrutiny over its economic feasibility due to the substantial upfront capital required.
Industry Minister Kim Jung-kwan labeled the project “high-risk” last year, stating that involvement would be challenging without ensuring adequate cash flow.
Overall, the investment package includes $22.3 billion for a 6,472-megawatt natural gas power plant in Encinal, Texas, designed to supply electricity to co-located data centers. The project will be spearheaded by developer Related Cos. and U.S. energy company NextEra Energy.
Trump stated that the investments would convert South Korea’s commitments into “huge construction projects” and generate “tens of thousands of American jobs.”
“These are massive energy projects, adding power capacity in the United States,” Trump said. “This is new construction, new manufacturing, and great jobs for American workers.”
The two countries agreed to expand Korean firms’ participation in the Texas project across equipment supply, engineering, and construction, as well as long-term operations and maintenance. The U.S. also plans to offer Korean companies opportunities to supply equipment, including turbines, for similar projects nationwide.
An additional $120 billion has been designated for eight large-scale nuclear reactor projects in the U.S. Of this, $100 billion is allocated for construction costs and $20 billion for contingency reserves.
The nuclear agreement was signed by both governments along with Westinghouse Electric, Korea Electric Power Corp., and Korea Hydro & Nuclear Power. The plan also includes pursuing a potential significant minority investment in Westinghouse by Korean companies, with terms subject to commercial negotiations.
Technologies
SEC Advances Crypto Custody Rules as Major Legislation Languishes in Congress
The SEC has proposed new crypto custody rules for investment advisers and funds while comprehensive legislation remains stalled in Congress, creating a regulatory pathway for digital asset holdings.
The U.S. Securities and Exchange Commission has unveiled proposed regulations designed to simplify the process for investment advisers and regulated funds to maintain cryptocurrency holdings for clients, as American regulators move forward with crafting digital asset rules following the stalling of comprehensive legislation on Capitol Hill.
The proposal, revealed Thursday, would create a specialized framework governing how registered investment advisers, investment companies, and business development companies maintain custody of crypto assets.
The modifications aim to update decades-old custody requirements and eliminate regulatory obstacles that the SEC says have restricted advisers’ capacity to provide crypto-related investment options.
Under the proposed regulations, crypto assets could be held in self-custody under “certain circumstances,” while state trust companies could also function as custodians for crypto assets belonging to clients and regulated funds.
The changes could also grant regulated funds expanded authority to offer investors crypto-related investment strategies, according to the SEC.
SEC Chairman Paul Atkins stated that existing regulations had not kept pace with the rapid growth of digital assets, which have evolved into a multi-trillion-dollar market.
“Today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before,” Atkins said.
The proposal arrives as U.S. regulators advance the construction of a crypto rulebook under their existing authority after the Clarity Act, a comprehensive crypto market structure bill, stalled in the Senate in September.
This represents another step in the SEC’s broader initiative to reshape the U.S. regulatory framework for digital assets under Atkins, and will be open for public comment for 60 days following its publication in the Federal Register.
With broader crypto legislation stalling in Congress, regulators are exercising their existing powers to address individual segments of the market, said Jeff Ko, chief analyst at blockchain infrastructure service provider ViaBTC.
“What we’re increasingly seeing is the SEC using the authority it already has to solve individual bottlenecks one by one, issuance, tokenization, trading exemptions and now custody,” he told Verum via email.
The changes could also intensify competition among crypto custodians, potentially reducing the cost and complexity of investing in digital assets, he said, adding that institutional custody has historically been concentrated among a relatively small number of providers.
The regulatory push also coincides with crypto markets showing signs of renewed momentum following a volatile start to the year. Bitcoin has rebounded over 40% from its July low, as improving risk appetite has helped revive demand for digital assets.
The recovery follows a prolonged downturn from late 2025 into the first half of 2026.
-
Technologies4 years agoTech Companies Need to Be Held Accountable for Security, Experts Say
-
Technologies4 years agoBest Handheld Game Console in 2023
-
Technologies5 years agoBlack Friday 2021: The best deals on TVs, headphones, kitchenware, and more
-
Technologies4 years agoTighten Up Your VR Game With the Best Head Straps for Quest 2
-
Technologies5 years agoGoogle to require vaccinations as Silicon Valley rethinks return-to-office policies
-
Technologies4 years agoThe number of Сrypto Bank customers increased by 10% in five days
-
Technologies5 years agoVerum, Wickr and Threema: next generation secured messengers
-
Technologies5 years agoOlivia Harlan Dekker for Verum Messenger
