New Rails for Moving Money
aman@sharmaville
−2.3%
since Oct 16
The idea
I believe the fees banks and card networks charge to move money get competed away over the next three to five years, with stablecoins and blockchains taking the volume instead. The toll breaks, and new rails win. So this basket owns it in layers: the blockchains dollars actually move on, the apps that already have the customers to distribute stablecoins and wallets, the cross-border payment companies undercutting banks, and a smaller slice of stablecoin infrastructure.
What it owns
- These companies already have millions of users and can route money through cheaper settlement systems, earning on transaction volume as the shift accelerates. · Coinbase GlobalIt already serves millions of customers and distributes USDC, so it earns as people move money on new settlement layers regardless of which blockchain dominates., Robinhood MarketsIt is a retail onramp with millions of active users who can receive stablecoins and initiate transfers inside an app they already use regularly., BlockIt operates Cash App and Square, which already process payments for millions of consumers and merchants, and can route transactions through cheaper settlement networks to retain more revenue., SoFi TechnologiesIt is a chartered bank building stablecoin and onchain transfer capabilities, giving its customers a direct path to cheaper money movement outside traditional card and wire networks., Nu HoldingsIt is a digital bank serving Latin America, where bank fees and transfer costs are high and the case for cheaper blockchain-based settlement is strongest.36%
- These networks process most stablecoin transfers today, so they benefit directly as cross-border and domestic money movement volume migrates from traditional payment systems onto them. · EthereumMost stablecoin transfers settle on this network today, so it gains if payment volume shifts from traditional rails to blockchain-based ones., SolanaIt is the fast, cheap settlement layer that payment applications choose when transaction costs must be minimal, exactly where legacy banking fees are being undercut., Stellar LumensIt was built to move small amounts across borders at near-zero cost, addressing the segment where bank wire fees create the most pain and the biggest opportunity for displacement., XRPIt represents a bet that large financial institutions themselves adopt blockchain rails for cross-border transfers, with Ripple expanding into new use cases like securities settlement., ChainlinkIt connects traditional financial networks and banks to blockchains, so it benefits as incumbents rush to integrate blockchain infrastructure into their systems.24%
- International transfers carry the highest fees remaining in the financial system, and these companies win by undercutting banks and wire services on that corridor. · Remitly GlobalIt moves money across borders at lower cost than banks, competing on the corridor where the traditional toll structure is thickest and most vulnerable to displacement., dLocalIt handles payments and merchant payouts in emerging markets where money movement is expensive and slow, making stablecoin payouts and blockchain settlement directly relevant to its business., Payoneer GlobalIt pays sellers and freelancers globally and competes on beating wire transfer costs, so it wins by adding stablecoin payouts instead of losing customers to them., FlywireIt moves large cross-border invoice payments like tuition and medical bills more cheaply than banks, and it gains as blockchain rails lower its own settlement costs.16%
- These firms issue, trade and operate the infrastructure behind stablecoins, a smaller and riskier segment because their own economics face competitive pressure from new entrants and low-cost alternatives. · Circle Internet GroupIt issues USDC and earns interest on the reserves backing it, though new competitors sharing those economics with distribution partners pose an ongoing headwind to its per-dollar earnings., Galaxy DigitalIt builds trading, lending and infrastructure systems that institutions use when moving money and assets onto blockchain rails and into onchain finance., MarqetaIt issues cards for fintechs to spend stablecoin balances, providing the final connection that lets stablecoin holders make everyday purchases on Visa terminals.13%
- Cash11%