Transparency and Trust Will Drive Stablecoin Adoption: Insights From Glendy Kam

In Washington DC, the Clarity Act has been placed on the Senate legislative calendar.

The bill is eligible for full Senate consideration, and of course Congress has about 1 month to pass it before they go on July recess.

And in the latest stablecoin industry news, MoneyGram has launched its digital dollar on the stellar blockchain, and this does follows so by becoming the first US national bank to make a stablecoin available within a consumer banking app.

Meanwhile, Western Union.

Stable coin launched one month ago, a traditional company like Western Union replacing the secure global social network for banks does highlight the shift from legacy rails to blockchain based settlement.

Well joining me live here at the New York Stock Exchange is Glendy Kam, Chief Product Officer of Tassat.

Well, welcome back.

Great to have you here.

Thank you for having me back.

Well of course when it comes to stable coins we've been hearing about launches as well as plenty of announcements.

We're talking about an organization, a 175 year old organization like Western Union.

What does this tell you?

Actually, I think the Western Union stablecoin move, USDPT is actually a very important step forward for the industry.

It actually addressed a challenge that cross-border payment, FX payment has been facing for a long time.

Uh, really have to give a lot of, it's really encouraging to give a lot of kudos to.

The leadership team in Western Union to put the investment into the resource and also the leadership behind this.

Um, I think one thing that is very interesting to see regarding the Western Union stablecoin is really how it choose to start.

Um, it's not just building another consumer product uh uh that that we see in the market.

It's really tackling a core operational constraint. cross-border payment and they've been really dragging behind because of like cutoff time and also settlement pause over the weekend, creating a lot of trap in capital and also more importantly is based on the correspondent banking model, a lot of layers of serial payment messages which cause unnecessary delay in a cross border.

Payment.

So what Western Union is doing right now is really tackling a very important friction in the cross-border and payment.

And Glendy, you and I are here at the New York Stock Exchange discussing this.

So it really tells you about some of the advancements that have been made in this space.

But when we're talking about the regulatory landscape, especially for stablecoins, when it comes to implementation, tell us about some of the challenges here right now.

So I think, well, there are two.

Very important pieces of regulation that passed, Genius Act that passed last year and then clarity passed the House July last year, but then it's kind of like uh st earlier this year.

But I think there's some really good development, uh, just a few weeks ago.

So, uh, we can see like very positive development happening.

But what's really important when it comes to stablecoin is, uh, there are two fundamentals, uh, that's very important about stablecoin compliance and.

Also, uh, reserve management.

So these are really two important foundations of stablecoin.

Of course, technology can move stablecoin very efficiently, uh, through the chains, but then, um, what really matters when it comes to adoption is, um, the reserve management and compliance that determines the end users, uh, institutions, um, regulators, and also your counterparties, and especially in the case like Western Union focusing on cross-border and ethics payment.

Whether they trust the stablecoin enough to adopt a scale.

And speaking of which, tell me about how enterprises can actually bridge this gap that we're seeing between liquidity as well as risk management.

Um, so, uh, I think this is something that, uh, put back on to the issue or even the participant in the ecosystem.

So for, uh, for example, like Western Union, in this case, launching a new stablecoin, it's really important when, if you want to have a success in a stablecoin to be able to participate.

In the ecosystem, not only having technology partner but also like industry participant, institutional partner, um, and also other partners that help with reserve management and compliance.

So that would really build out the strength and also the foundation for institutional to adopt the stable coin.

Yes, and finally, Wendy, before I let you go, which global business sectors do you think will see the fastest transition here when it comes to on chain payments?

Um, I think a lot of the payrolls, uh, because right now there are, you can see a lot of companies that they are using stablecoin to pay uh overseas workers uh because cross-border payment, uh, stablecoin, if you look at it, it's just like any real-time payment rail, right?

It makes the value, uh, uh, transfer instantaneously available and also you actually were able to make it usable instantly.

And we do have time for one more question.

So I do want to ask you how critical is real-time accounting here as well as reserve transparency when it comes to winning over some of these skeptical revenue officers out there?

Very, very, very, very important because transparency.

So there are two parts to it transparency and reserve management.

If you think about stablecoin, it's new to a lot of people.

So the trust is really important.

So the transparency in the reserve management, the quality of the asset behind it, and also the liquidity when it comes to redemption, those are really important factors that people would take into consideration when they're thinking about the adoption.

Well, Wendy, it was great having you on the show this morning.

Thank you so much for joining me, and I appreciate your time as well as your perspective.

Thank you so much.

Thank you so much.