From Bloomberg yesterday 16 July
Why is this a great thing for Square and DeFi?
#1 Today DeFi and Crypto in Commerce (POS and eCom) are in need of a “core” that can manage either compliance and connections to existing financial services, or operate in critical mass with minimal interaction to banks (ex – custody, exchange, platform, consortium-diem).
#2 Today compliance is driving architecture. Square’s initiative is opportunity to define a “closed network” with architecture optimized for DeFi (not driven by bank compliance needs). DeFi has potential to become ubiquitous GLOBAL financial services platform. Whereas Facebook/Diem are focusing on the instrument (Stablecoin), Square seems to be focusing on the architecture and the network.
#3 The Square biz model thus has opportunity to expand far beyond POS/Commerce/P2P/Wallet.. to become the hub for DeFi (a new model of financial services). My top recommended focus is Latin America and Indonesia..
(as side note my NewCo is Acc3pt Payments and we are in this space, but with a different focus)