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Simon Taylor Profile picture
@sytaylor
Jul 22 • 3 tweets • 1 min read • Read on X
Western Union is

- A $4.2bn revenue business
- Revenue down 3.2% YoY
- $150bn annual volume

Meanwhile Visa estimates "Retail-sized stablecoin transactions"

- $4.8bn monthly volume
- $57.6bn annualized
- Growing 1x to 4x YoY (if not much higher)
At 2.6bn Market Cap Western Union trades below its top line revenue ($4.2bn)

Contrast this with Circle trading at $48bn market cap - trading at 20x+ revenue, and 70x+ earnings

Clearly, CRCL is crowded, and there's hype.

But can the incumbent get innovation before the innovator gets distribution?
Excited to chat more about this on @TokenizedPod this coming week

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More from @sytaylor

Simon Taylor Profile picture
Oct 8
Biggest story in stablecoins nobody noticed

Alipay, the mobile payments wallet with 1 billion users, will launch a EURO Stablecoin BREUR, to the European market

They're only the second to be listed by the European Regulator ESMA.

This is HUGE for reasons you're missing 🧵
Alipay has over 1 billion active consumers

It is a digital wallet and "superapp" for online and in-store payments

Also does financial services like investments and wealth management.

Why are they so early to Euro stables?
Here's what everyone missed

Alipay went live with tokenized FX between EUR, GBP and USD at

- HSBC
- Citi
- JP Morgan

They're pushing their banks hard

And they have their own blockchain Ant Chain
Read 5 tweets
Simon Taylor Profile picture
Oct 6
Stablecoins solve a bottleneck in the internet economy.

20th-century money is too slow, expensive, and infrequent for the demand of internet-scale payments.

This is a pattern that repeats in history.

🧵 Image
1. The Industrial Revolution

- The Royal Mint couldn't create coins fast enough
- The shortage led to widespread counterfeits
- The new wage economy demanded more coins
- So factories with high quality machinery made their own

The Royal Mint accepted this before eventually USING that technology themselves 50 years later
2. The Railroad Boom

- The centralized banking system couldn't provide local capital
- Delaying western expansion and railroad build out
- States passed "free banking" laws
- Local banks set up with reserves at the state

This was tolerated until the 1860s where national charters and centralized money printing and control
Read 6 tweets
Simon Taylor Profile picture
Oct 5
The bank lobby is furious about stablecoin yield under the GENIUS Act. They're calling it a "loophole" that needs closing.

But here's what they're missing: We've seen this movie before. And it built an entire generation of fintech companies.

🧵
The GENIUS Act prohibits stablecoin issuers from paying interest directly to holders. Banks claim issuers are skirting this by paying third parties (like exchanges), who then offer rewards or yield to users.

Treasury estimates this could drain $6.6 trillion from bank deposits.
But let's reframe what's actually happening here.

Stablecoin issuers earn yield on reserves (mostly T-bills at 4%+). They keep some, pass most to distributors. Distributors use some for operations, spend some on customer acquisition through rewards.

Sound familiar?
Read 21 tweets
Simon Taylor Profile picture
Aug 19
The world's first 50% stablecoin IPO just happened. Crypto exchange Bullish received $1.15bn in USDC.

This quietly changes everything about how public companies can raise capital. Image
What actually happened:

• Bullish (NYSE: BLSH) closed their IPO on August 14th
• 50%+ of proceeds came as stablecoins ($1.15bn total)
• Settlement across 8 different stablecoin types
• Majority minted on Solana, custodied by Coinbase
Why this matters - IPO's become more global:

- Traditional IPO is single currency, single jurisdiction
- This IPO had USD + EUR stablecoins from US, Europe, Asia
- The stablecoins also settle instantly (not T+2)
Read 7 tweets
Simon Taylor Profile picture
Aug 15
Nubank's results are INSANE. Every other bank CEO must look at these and be like... HOW?

Here's the breakdown...

* 122.7 million customers (+4.1M net additions)
* $3.7 billion revenue (+40% YoY)
* $637 million net income (+42% YoY)
* $12.2 monthly revenue per active customer (+18% YoY)
* $0.80 cost to serve per customer
* 83.2% monthly activity rateImage
That's a benchmark every other organization in finance should print out on their wall. Only webank in China (with 494m users) can beat.

The unit economics *almost* don't make sense:

- $0.80 cost to serve each customer
- $12.20 revenue per customer/month
- That's 15x return 🤯

Most banks struggle to hit 3x - That's the benefit of self-owned technology and a branchless servicing model.
Geographic Split:

* Brazil: 107.3M customers (60% of adult population)
* Mexico: 12M customers (13% of adult population)
* Colombia: 3.4M customers (10% of adult population)

That says to me, the newer markets are taking longer to penetrate. Where's the next growth engine coming from? Not many 200m + populations around 👀
Read 5 tweets
Simon Taylor Profile picture
Aug 14
Most people think stablecoins, CBDCs, and tokenized deposits are fighting to the death. They're not. They're building the same highway.

Here's what 99% of debate gets wrong:

These aren't competing technologies.

They're solving different problems for different people:

🧵 Image
Think of it like this:

- Stablecoins = Highway for the unbanked (or global south x global south trade)
- Tokenized Deposits = On-ramp for Fortune 500s
- CBDCs = Settlement layer for central banks

All three go onchain.

All three win.
The GENIUS Act was an inflection point and I've noticed tier-1 banks completely flip their approach.

GSIBs like Deutsche Bank. Wells Fargo. JP Morgan is now actively becoming a partner bank to the stablecoin sector as off ramps (payments access).

It doesn't take a giant leap to see them go from supporting with Tokenized Deposits.
Read 7 tweets

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