Spec Fin Weekly

Research evidence excerpt

Spec Fin Weekly

ranches similarREPORT for both the 2026-3 and 2026-2.

We do note that excess spread in the 2026-3 did compress 82bps, as the yield on the loans was down 93bps vs. the 2026-2. This

may imply lower take rate to Upstart. It'll be interesting to see whether lenders begin pricing in higher rates to consumers, as this

trend of lower ABS excess spread has been occurring with other recent issuers across the lending industry.

Going forward, we expect take rate to expand as Upstart shifts towards more subprime lending, though with possible pressure

on transaction volume.

What will Enova become? Grasshopper Bank Adds StableCoin-Based Payments Capabilities: We thought the following

announcement last week was interesting: Grasshopper Bank and Increase (Private) developed a banking core that allows fintechs

to move money internationally quickly and seamlessly. The technology allows fintechs to convert fiat funds in Grasshopper Bank

accounts into USD issued through Circle (CRCL, Not Rated), transfer internationally through blockchain rails, and then convert

back to fiat funds to streamline cross-border payments.

According to Increase: “The challenge with stablecoin payments has traditionally been the series of ACH payments and wires

that precede the actual blockchain transaction. The collaboration with Grasshopper makes stablecoin payments faster and more

accessible by enabling customers to on- and off-ramp directly from accounts they already hold.”

According to Grasshopper Bank: “Stablecoins represent a fundamentally new way to move money across borders.” The article

further states that "By partnering with Increase, Grasshopper is among the first banks to bring stablecoin capability to market

as part of its broader payment strategy.