“Stablecoins are global, and so when you can pay anyone anywhere at any time, the costs go down significantly and the efficiencies increase.” – 01:57
Marc Boiron, CEO of Polygon Labs, joins Remy Blaire to discuss the future of payments innovation, focusing on stablecoins, tokenization, and the role of artificial intelligence in finance.
Mark explains the concept of stablecoins as “internet native money,” which allows for global transactions that are faster and more cost-effective than traditional payment systems like FedNow in the U.S. and CEPA in Europe. He points out that stablecoins eliminate many of the restrictions associated with localized payment systems, enabling users to transact anywhere in the world.
As the discussion progresses, Remy and Mark delve into the regulatory landscape surrounding stablecoins. Mark notes that the recent passage of the Genius Act has provided much-needed clarity for stablecoin issuers, transforming the perception of stablecoins from a regulatory burden to a lucrative opportunity for fintech companies. This shift is expected to lead to significant growth in U.S.-based stablecoins, contrasting with other regulatory regimes like MICA, which have been more restrictive.
Mark shares impressive statistics about the performance of stablecoins on the Polygon platform, revealing that there is currently around $3 billion in stablecoins and a monthly transaction volume exceeding $400 million. He emphasizes the diversity of stablecoins available on Polygon, including a newly launched yen-based stablecoin, which allows users to hold and transact in various currencies beyond the U.S. dollar.
The conversation also touches on the economics of currency-backed stablecoins, with Mark explaining that they are typically backed by debt instruments, allowing issuers to generate revenue while providing users with a globally accessible form of currency. Remy and Mark discuss the importance of yield generation in the fintech space, with Mark highlighting Polygon’s focus on payments and its collaboration with other networks, such as Katana, to offer yield-bearing assets.