 and Layer 2 (L2) solutions. The conversation begins with an overview of how fintech companies and traditional financial institutions are increasingly launching their own blockchains to enhance global payments, merchant settlements, and tokenized asset trading.){kind=link}
“In a world where stablecoins have become as easy to use as credit cards, you’re seeing a lot of actual stablecoin credit cards.” – 03:31
Tarun Chitra, Co-Founder & CEO of Gauntlet, joins Remy Blaire to discuss the dynamic landscape of blockchain technology, particularly focusing on Layer 1 (L1) and Layer 2 (L2) solutions. The conversation begins with an overview of how fintech companies and traditional financial institutions are increasingly launching their own blockchains to enhance global payments, merchant settlements, and tokenized asset trading.
Remy and Tarun explore the strategic framework of “buy, build, partner” decisions that organizations utilize to navigate the complexities of acquiring or developing new technologies. Tarun explains the benefits and challenges associated with building L1 blockchains, which offer ultimate control and differentiation but come with significant costs and complexities. In contrast, L2 solutions are presented as a more accessible middle ground, leveraging existing L1 security while allowing for rapid customization and scalability.
The discussion shifts to the rise of stablecoins, which have gained traction over the past five to ten years. Tarun highlights the evolving regulatory landscape, noting that potential legislation like the Genius Act and the Clarity Act is paving the way for payments companies to innovate without the previous gray areas. He emphasizes that stablecoins not only facilitate instant settlements but also present a unique opportunity for companies to meet regulatory requirements through custom systems.
Remy and Tarun delve into the implications of stablecoins for retail consumers, discussing how they could compete with traditional payment methods like credit cards. Tarun explains how stablecoin credit cards are bridging the gap between on-chain assets and everyday transactions, allowing users to earn yield on their assets while spending them.
The conversation also addresses decentralized applications (DApps) and their role in the financial ecosystem. Tarun provides a balanced view, discussing both the positive aspects—such as the ability to access on-chain products that traditional ETFs cannot offer—and the negative aspects, including the potential for DApps to serve as exit vehicles for early investors in less liquid assets.