Inspired by @raincards and @nook_savings, I started thinking about services that will enable adoption of stablecoins (I called it "The Stablecoin Banking Stack", but please don't laugh, it's a super early version):
✔️ Domestic non-card payments: I think we are far away from central banks settling in stablecoins, so we need a service that would enable incoming and outgoing non-card payments. Should be pretty simple to build: convert USDC to fiat, screen, send over the instant domestic rail like FedNow
✔️ Cross-border payments: someone should build what Wise is building, but with stablecoins as the funding source. Instead of converting stablecoins into fiat and sending it over SWIFT, a service could convert stablecoins into local currency and send over the domestic instant rail. Of course, this could be Wise themselves building such a service.
✔️ Card payments: I am bullish on the adoption of stablecoins in commerce, but this will take time. Thus, we need further evolution of stablecoin-based cards. Especially, charge and credit cards. As I understand, @raincards have figured out how to build native stablecoin cards, we now need lenders to step in and enable credit limits for such cards.
✔️ Savings: current options or earning interest on stablecoins are limited to Coinbase paying rewards on USDC balance, and earning yield on lending protocols (with companies like @nook_savings nicely abstracting the complexity). The next step will probably be in the "deposit tokens", with banks and non-banks stepping in to provide interest-yielding instruments.
✔️ Identity: finally, to enable all of this, we need identity. Payments need to be screened, loan agreements must be enforceable, etc. I believe Coinbase is trying to solve this with Profiles on Base.
Reply in the comments if you know any companies already building the above 🙏🏻
✔️ Domestic non-card payments: I think we are far away from central banks settling in stablecoins, so we need a service that would enable incoming and outgoing non-card payments. Should be pretty simple to build: convert USDC to fiat, screen, send over the instant domestic rail like FedNow
✔️ Cross-border payments: someone should build what Wise is building, but with stablecoins as the funding source. Instead of converting stablecoins into fiat and sending it over SWIFT, a service could convert stablecoins into local currency and send over the domestic instant rail. Of course, this could be Wise themselves building such a service.
✔️ Card payments: I am bullish on the adoption of stablecoins in commerce, but this will take time. Thus, we need further evolution of stablecoin-based cards. Especially, charge and credit cards. As I understand, @raincards have figured out how to build native stablecoin cards, we now need lenders to step in and enable credit limits for such cards.
✔️ Savings: current options or earning interest on stablecoins are limited to Coinbase paying rewards on USDC balance, and earning yield on lending protocols (with companies like @nook_savings nicely abstracting the complexity). The next step will probably be in the "deposit tokens", with banks and non-banks stepping in to provide interest-yielding instruments.
✔️ Identity: finally, to enable all of this, we need identity. Payments need to be screened, loan agreements must be enforceable, etc. I believe Coinbase is trying to solve this with Profiles on Base.
Reply in the comments if you know any companies already building the above 🙏🏻
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