Overview
The transcript discusses the rapid adoption and impact of stablecoins in the U.S. and globally, highlighting use cases for businesses, remittances, and payments, as well as emerging innovation, regulatory challenges, and business model transformations.
Stablecoin Adoption and Impact
- Stablecoin giant Circle experienced a significant share increase after going public in June 2025.
- The Genius Act, signed into law, boosted stablecoin legitimacy and adoption in the U.S.
- Stablecoins appeal to merchants due to reduced chargebacks and lower transaction fees compared to credit cards.
- U.S. consumers are increasingly using digital payments, with average mobile payments rising from 4 (2018) to 11 (2024) per month.
Business Use Case: Prevail Coffee
- Prevail Coffee operates retail locations and sources coffee through direct trade globally.
- Blockchain and stablecoins address financial tool gaps in developing countries and capital access issues for U.S. small businesses.
- Prevail piloted the Drip Payment app, letting customers pay with stablecoins via Coinbase’s base chain integrated with Square POS.
- Credit card fees are a significant business expense, sometimes exceeding employee costs.
International Payments and Remittances
- Film director Francisco Diz uses stablecoins to pay international providers, avoiding delays and high fees of traditional banking.
- International transfers involve multiple intermediaries, each collecting fees, which stablecoins can streamline.
- Remittances to low/middle-income countries topped $685 billion in 2024, outpacing other aid and investment sources.
- Stablecoin usage is rising in regions with weak currencies, such as Sub-Saharan Africa and Argentina.
Payment Infrastructure and Industry Responses
- Visa and Mastercard assert that fees fund safe transaction networks but face pressure to reduce costs and innovate.
- Visa is exploring stablecoins for cross-border payments and aims to provide added security and trust.
- Innovation and competition are growing post-Genius Act, but privacy, anti-money laundering, and transaction infrastructure concerns persist.
Tokenization and New Business Models
- Prevail Coffee is developing a platform to tokenize loyalty rewards, creating tradeable, liquid assets for customers.
- Tokenization allows customers to invest in local businesses and benefit from their financial success.
Decisions
- Prevail Coffee to pilot Drip Payment app for stablecoin transactions.
Action Items
- TBD – Prevail Coffee: Expand stablecoin payment options using the Drip Payment app.
- TBD – Prevail Coffee: Launch tokenization of loyalty rewards through the CLIS platform.
- TBD – Lawmakers: Consider follow-up legislation to address privacy and AML concerns around stablecoins.