The working capital math is the part most analyses miss. Faster settlement isn't just about fee savings - it's about what the cash can do while it's not stuck in transit.
We’re seeing on/off-ramps hit a race to zero, which effectively commoditizes them into a feature rather than a business. This changes the math entirely; value creation is now purely in the systems using the rails, not the rails themselves (value is no longer being extracted by ramps). Plus, if stablecoins become deeply embedded in B2B verticals, do we even need the ramps anymore?
I saw it firsthand at Airtm. The cross-border stablecoin space is flooded with startups offering nearly identical services. When Bridge launched dollar-backed accounts, the rest of the space rushed to build on top within months. The underlying infrastructure is the same; differentiation is thin. With this many players chasing the same massive opportunity, margins compress fast. Classic Thiel dynamics, competition erodes profits to the benefit of end users, not the ramps themselves.
Great article, and agreed. IMO this depends on the time horizons since value captured will eventually be distributed along the network, compressing to previous margins. Additionally wires having no entrenchment (defended previously by there being no alternative) means adoption can happen rapidly reducing the length of the window.
The working capital math is the part most analyses miss. Faster settlement isn't just about fee savings - it's about what the cash can do while it's not stuck in transit.
We’re seeing on/off-ramps hit a race to zero, which effectively commoditizes them into a feature rather than a business. This changes the math entirely; value creation is now purely in the systems using the rails, not the rails themselves (value is no longer being extracted by ramps). Plus, if stablecoins become deeply embedded in B2B verticals, do we even need the ramps anymore?
Killer insights as always, tocayo.
thank you San. where are you seeing off ramping fees go to zero?
I saw it firsthand at Airtm. The cross-border stablecoin space is flooded with startups offering nearly identical services. When Bridge launched dollar-backed accounts, the rest of the space rushed to build on top within months. The underlying infrastructure is the same; differentiation is thin. With this many players chasing the same massive opportunity, margins compress fast. Classic Thiel dynamics, competition erodes profits to the benefit of end users, not the ramps themselves.
P.S. AI tooling only accelerates the cycle.
Let’s gooo!
Great article, and agreed. IMO this depends on the time horizons since value captured will eventually be distributed along the network, compressing to previous margins. Additionally wires having no entrenchment (defended previously by there being no alternative) means adoption can happen rapidly reducing the length of the window.