Podcast Summary: The Wolf Of All Streets — "Visa And Swift Go All-In Stablecoins | CryptoTownHall"

Host: Scott Melker
Date: September 30, 2025
Main Topics: Visa and Swift’s adoption of stablecoins, stablecoin infrastructure and competition, regulatory hurdles, payments industry evolution, and US regulatory catch-up.

Episode Overview

In this episode of CryptoTownHall, Scott Melker and a panel of industry experts dive deep into the breaking news of Visa launching a stablecoin pilot for cross-border payments and Swift's major partnership with 30 banks to build a 24/7 blockchain ledger for global transactions. The conversation explores the evolution of stablecoins, the commoditization of payments infrastructure, regulatory battles in the US versus global jurisdictions, innovation dynamics, and the future of payments and rewards in both crypto-native and traditional financial systems.

Key Discussion Points & Insights

1. Visa & Swift: The Traditional Payments Giants Enter Blockchain

• Visa’s Launch: Visa has initiated a stablecoin pilot focused on cross-border payments, indicating mainstream momentum in using blockchain for real-world financial operations.
• Swift’s Strategic Pivot: Swift is collaborating with 30 banks to create a perpetual blockchain ledger for global payments, marking a clear effort to avoid “the fate of Kodak and Blockbuster” by embracing superior technology.
  • Quote [00:38, Scott]:
    “Looks like Swift finally deciding that they don't want to go the way of Kodak and Blockbuster and adopting a superior payment technology to the Rails that they are currently using that were probably made in the 1970s.”

2. Stablecoins as the “Killer App” of Crypto

• The consensus is that stablecoins are now the clearest, most compelling use case for blockchain, with rapid adoption set to continue indefinitely.
• Stablecoins' price stability compared to volatile tokens like XRP makes them superior for payments.

3. XRP, Chainlink, and Layer One Narratives

• XRP’s Diminishing Narrative:
  • The hope that XRP or Ripple would be adopted by Swift is fading, replaced by real-world deals involving Chainlink and others. XRP’s volatility makes it a poor choice for payments infrastructure.
  • Quote [02:54, Dave]:
    “The people who are buying XRP have no clue what they're buying ... when you compare XRP to stablecoins, it's like you know, comparing a horse and buggy ... to a bullet train in Japan.”
• Chainlink’s Rising Profile: Chainlink is now actively partnering with Swift, undermining past expectations for XRP.
• Commoditization of Infrastructure:
  • Stablecoin blockchains (e.g., Plasma by Tether, Tempo by Stripe) proliferate, but these are seen as essentially commoditized rails—the real value lies elsewhere.

4. New Stablecoin Infrastructures: Plasma, Tempo, and Beyond

• Plasma (Backed by Tether):
  • The panel sees stablecoin chain infrastructure becoming ubiquitous and easily replaceable, with little potential for high-value tokens attached to any single network.
  • Quote [06:42, Dave]:
    “Stablecoin backing technology is going to be ubiquitous. It's going to be commoditized.”
• Evolving Business Models:
  • True value will accrue to companies offering improved business models and DeFi protocols, not to the base stablecoin rails.
  • Quote [07:53, Dave]:
    “The real value ... is going to be driven into companies ... and DEFI protocols ... The idea that the layer one promoting this technology ... has to be a commodity. I just don't get it.”

5. The Next Generation of Stablecoins

• Performance-Driven Market:
  • With regulation maturing, competition will shift to transaction speed, cost, and regulatory compliance.
  • Quote [09:01, Amateo]:
    “Now that the infra has been approved ... we’re now looking at how can you increase the efficiency, increase the velocity of these stablecoins.”

6. Centralization, Consumer Protections, and User Experience

• Assessments that for mass adoption, stablecoins must integrate consumer protections like payment rollbacks and fraud insurance—paralleling the service layer provided by banks and credit cards today.
• Adaptation will likely involve hybrid models merging automation and human (or AI) support.

7. Rewards, Regulations, and the Banking Lobby

• Senate Hearing Consequences:
  • Looming regulation could ensure stablecoins are treated as payments, not taxable commodities or equities, aligning with US policy interests.
  • Banks are lobbying hard to block crypto companies like Coinbase from paying interest or rewards on stablecoin holdings, seeking to preserve their own subsidy structures.
  • Quote [18:25, Dave]:
    “It's an unholy alliance of the banks who want to protect their deposit base ... and a subsidy to the credit card companies who will still be allowed to provide rewards, but upstarts won't ... It is actually important because this notion of trying to block is, is there is very, very real and it will gum up the works.”
• Regulatory Capture & Populism:
  • Laws are being shaped to favor incumbents against innovation. Both panelists and legislators recognize the battle as “the big guys versus the small guys.”

8. Global Regulatory Race

• The US is lagging behind the EU, Canada, and Australia, all of which have clearer regulatory frameworks for digital assets.
• Quote [22:05, Ali]:
  “The US Is kind of lagging behind in terms of this regulation and what to follow and adapt. So they're kind of playing catch up now with the rest of the world.”

9. No-Action Letters and Regulatory Innovation

• Double Zero’s SEC No-Action Letter:
  • Double Zero (00) receives a no-action letter for its 2Z token, signaling willingness by the SEC to use exemptive relief for utility tokens where appropriate.
  • Quote [25:36, Scott]:
    “Double Zero was issued a no action letter for two Z by the sec. ... basically the first of its kind no action letter from the SEC on a token launch in the United States.”
• SEC focus remains on requiring disclosures and consumer protections, even as new models emerge.

10. Self-Custody, Defi, and AML/KYC

• Realistic outlook that KYC/AML compliance will anchor at stablecoin entry/exit points and merchant interfaces, not at the protocol or peer-to-peer transaction level.
• Practical and technological challenges in tracking and enforcement remain—from black markets to the complications of global capital flows.
• Quote [30:22, Dave]:
  “Most people believe that all KYC and AML is going to happen at the stablecoin level. So when you put fiat introduced into the system ... you'll have to kyc that ... So that's how they're going to do it.”

Notable Quotes & Memorable Moments

• On Stablecoins’ Ubiquity
  “Stablecoin backing technology is going to be ubiquitous. It's going to be commoditized.” – Dave [06:42]

• On Swift’s Belated Awakening
  “Looks like Swift ... adopting a superior payment technology to the Rails that they are currently using that were probably made in the 1970s.” – Scott [00:38]

• On XRP’s Payment Use Case
  “When you compare XRP to stablecoins, it's like ... comparing a horse and buggy being driven over dirt fields compared to ... a bullet train in Japan.” – Dave [03:27]

• On Consumer Experience with Stablecoins
  “Nobody ... is going to get scale. If people have to decide I want to do a stablecoin transfer and I'm going to have to choose the network ... It's going to need to be abstracted away but of course it will be.” – Dave [41:28]

• On the Regulatory Battle
  “This is not party lines. This is just the big guys versus the small guys. And it is actually a very important battle.” – Dave [21:39]

Timestamps: Key Segments

• 00:00 – 01:21 — Introduction, News Recap (Visa & Swift)
• 01:21 – 04:28 — XRP Narrative, Stablecoins vs. Tokens
• 05:13 – 11:42 — Emerging Stablecoin Rails: Plasma, Tempo; Commoditization; Business Models
• 14:02 – 18:25 — Regulation, Senate Hearings, US Incentive Structures
• 24:27 – 27:54 — SEC No-Action Letter for Double Zero, Regulatory Philosophy
• 30:22 – 34:07 — AML/KYC Enforcement, Deep Dive on Regulation & Practicality
• 35:50 – 36:52 — Visa (and credit card) Stablecoin Integration
• 41:13 – 42:33 — Fragmentation vs. Consolidation in Stablecoins, User Experience

Takeaways

• Payments are Changing: Major traditional players are rapidly adopting blockchain and stablecoins, a sign of genuine, lasting transformation in the payments industry.
• Regulatory Uncertainty Is Both a Risk and an Opportunity: US policymakers are struggling to keep up with global peers, with significant battles underway over who gets to offer rewards, consumer protections, and new business models.
• Innovation Will Win — Eventually: Despite regulatory foot-dragging and intense lobbying by incumbents, the trend toward faster, cheaper, and more open financial infrastructure is inexorable.
• User Experience Must Improve: Services and abstraction layers are needed to make stablecoin usage as simple as current fiat payment options, including integrated customer support and fraud protections.

For listeners who want a pulse on where crypto and traditional finance are colliding—and who is likely to win—this episode is a comprehensive, jargon-free look at stablecoins, payments innovation, and what’s coming next.