Head of Financial Markets @Notabene_id. Finance and blockchain. Financial Engineer from @UCBerkeley.
New York
Joined May 2021
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The stablecoin sandwich is just correspondent banking on different rails.
Same bilateral agreements, same pre-funded positions, same corridor-by-corridor expansion. The costs don't disappear - they shift.
I wrote a piece about how we got here and what I think we should be building towards instead 👇
Looking forward to the conversation on "Killing the Stablecoin Sandwich" at @thestablecon EMEA with @sytaylor and @TeddHuff next week in Amsterdam - will see some of you there.
Proud of what we’re building!
When I show people Notabene Flow in action, there's always a lightbulb moment.
Create an invoice → send a payment link → recipient picks their provider → authorized, settled on-chain, reconciled. Real time.
No chasing payments. No manual reconciliation. Invoice data travels with the payment end to end.
I'll be hosting a live demo next Thursday 4/30. Join to see more uses and ask any questions you have — link in the replies.
Most interesting DeFi apps operating today:
- @ethena : A synthetic dollar protocol backed by ETH and BTC. It stabilizes its value through delta-hedging.
- Curve.fi (duh!): A decentralized exchange for stablecoins. I believe there will be huge adoption for this type of application.
- @aeroxyz : A mix of trading and swapping. I love the interface!
Thesis on money movement
As we continue discussing why the future of money, as we perceive it, will change, it becomes clear that the tokenized dollar is no brainer to the evolution of monetary exchange.
Setting aside the commonly shared advantages of the tokenized dollar, imagine a world where money is no longer constrained by banking hours, outdated rails, or human error. A financial system where money transfers come at zero cost. This isn’t a prediction but rather a reality that has yet to be fully realized.
Tokenized dollars will be the fuel for payment processors. When I envision the tokenized dollar, I don’t see it as an additional layer in the current payment stack, though, for the time being, it may coexist with traditional systems in what’s often referred to as the “stablecoin sandwich.” Instead, I view it as the foundation of a completely parallel system that bypasses card network fees and banks.
The card network model has been extensively tried and tested, and countless startups have attempted to disrupt Visa and Mastercard. However, none have yet achieved true product-market fit. Closed-loop payment systems, branded cards, and loyalty programs may work in theory, but they’ve never addressed the core issue.
Do I think banks will disappear? Definitely not. But do I foresee card networks, interbank operations, and closed systems losing significant market share? Absolutely; I am confident in that.
Tokenized dollars will reduce payment margins to near zero. This will made us think of new ways to generate revenue; hence, providing real value!
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Episode 25 is released!
Patrick O'Meara - Part 4: Misconceptions, Founder Experience, Vision
In this episode, Patrick O'Meara and I concluded our discussion on the most common misconceptions regarding crypto, founder experiences, and the future vision of blockchain.
As always, subscribe, like, and share ;)
youtu.be/4eUcYvZlrec?si=I4w3…
Episode 24 is out!
In this episode, I continue the conversation with Patrick where we dive deep into tokenization at a deeper level:
Why is tokenization taking off today and not 4 years ago?
We explore the factors that have driven the recent surge in interest of tokenization.
What are the lowest hanging fruits in the market?
Patrick and I discuss the most promising areas and use cases where tokenization can make an immediate impact.
What kind of exposure are institutions looking at?
Institutions are eyeing the tokenization space closely, but what are their specific interests and concerns? We cover the types of assets, risk appetites, and strategies that are attracting attention.
As always, subscribe, like, and share!
youtu.be/BeWgGS29qAI?si=jy_G…
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Going back to the stablecoin argument, Nic presents in the second what he refers to as Gorton and Zhangism.
The second argument Nic addresses comes from economists Gary Gorton and Jeffery Zhang, who argue that stablecoins resemble the flawed US “free banking" era (1830s-1860s) and are therefore unlikely to succeed.
Gorton and Zhang claim that stablecoins, like banknotes issued by banks during that period, will face crises and fail to maintain their peg to the dollar, making them an unreliable medium of exchange (MoE).
They emphasize that stablecoins don't satisfy the "No Questions Asked" (NQA) principle, meaning that people will always question their value before accepting them in transactions.
Nic counters by arguing that the US free banking era is a poor analogy. He points out that the instability of US banks during that period was due to regulatory restrictions, such as forcing banks to hold risky state government bonds and prohibiting nationwide branching, which made them vulnerable to failures. In contrast, stablecoins today hold safe, short-term assets like US Treasuries and are not involved in risky lending or maturity transformation, making them much more stable.
Finally, Nic critiques Gorton and Zhang’s view of the NQA principle, noting that even traditional bank deposits have faced scrutiny during crises, such as the 2023 bank runs.
Despite occasional issues, stablecoins have adapted, becoming more resilient over time, and are increasingly treated as money in real-world use cases.
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I recently got my hands on one of the most interesting articles on stablecoins by Nic Carter.
In the upcoming posts, I’ll be summarizing it.
The article mainly presents various arguments against stablecoins and why some believe they won't succeed. Nic counters each argument.
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He begins with what he calls "Greyism," after Rohan Grey, a law professor. Grey criticizes stablecoins as unregulated bank deposits and argues that both stablecoins and fintechs should be subject to bank-like regulation since they function as deposit-taking institutions without adequate oversight.
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Episode 23 is here!
Patrick O'Meara - Part 2: Founder Mode, TradFi vs DeFi, Lessons Learned from Different Cycles
youtu.be/ijPckTECHog
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You were today years old when you found out that Wyoming is issuing its own stable coin - Wyoming Stable Token (WST). The Wyoming Stable Token Commission created WST, and they’ve designed a system where these digital tokens are backed by the state treasury.
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Having spent the last 2 years in SF and now concluding my 2nd month in NYC—which translates to 4,924,800 seconds—I believe I have significant insight into this matter! I will boil my reasoning down to 2 main pillars:
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Sense of Urgency: Living in NYC, no matter what, will put you in productivity mode. It is a fast-paced city where people's interactions are results-driven. This energy is contagious and pushes you to stay on your toes. SF is becoming too slow, though I am against saying SF is dead. Engineers are preferring to work from home, and events are becoming rare.
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We say that blockchain will be seamlessly integrated into banking—where we’ll be using blockchain without even needing to mention it. But are we there yet?
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Proud to have been taught by you @saifedean
Why Saifedean Ammous Is A #Bitcoin Legend
Sold over 1 million copies of “The Bitcoin Standard”
Convinced Michael Saylor to buy 200,000 BTC
A thread
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