Stablecoins, Payments, and What’s Next
The global payments industry moves $1.8 quadrillion annually, yet it remains burdened by high fees, gatekeepers, and inefficiencies. Stablecoins are well positioned to disrupt this system, offering faster, cheaper, and more accessible payment solutions.
In his latest article,
@SamBroner, a partner at
@a16zcrypto, explores how stablecoins are changing payments and what lies ahead. With near-zero transaction costs, sending $200 internationally can cost as little as $0.01 using stablecoins on specific chains. Businesses of all sizes, from coffee shops to global enterprises, stand to benefit from improved margins and instant settlements.
Sam explores how in this low-cost stablecoin transaction model payments companies may seek new ways to monetise their services - including yield-sharing programmes offered by stablecoin issuers to incentivise the use of their on-ramps. Through OpenTrade, payment companies and other fintechs building on stablecoins can also find additional revenue streams through yield generation on their users’ stablecoin balances whilst assets are at rest on-platform, benefiting both users and providers.
Who does this today?
@_WOO_X: With over $600M daily trading volume, WOO X leveraged stablecoins to improve liquidity and transparency for their global trading community. As part of their WOO X Earn product suite, WOO X users can now deposit their unencumbered stablecoin holdings in RWA Earn Vaults to earn boosted yields.
@littioco: Addressing Colombia's demand for USD, Littio neobank uses USDC to offer a simple, secure way for users to save, spend, and transfer digital dollars. Users now also have the opportunity to deposit their digital dollar savings in Littio Pots and earn 2-5% APY, unmatched by any of the local banks.