Stablecoins. Breaking down a momentous set of April announcements

Impact of Stablecoins on Banks and Central Banks, the Upside for V/MA.

Stablecoins took many amazing leaps in the last 2 weeks. Key developments include

  1. PayPal’s new Stablecoin (PYUSD) earning 3.7% (in PYPL wallet). 
  2. Circle Launches Cross-Border Payment Network:- Circle Payments Network (CPN) – see CPN whitepaper
  3. Paxos and Coinbase, as well as Circle, are pursuing bank charters
  4. Visa to join Paxos and Robinhood in USDG
  5. EU banks are creating a new consortium around stablecoin with the involvement of ING and others.
  6. ECB flags risk of contagion from US crypto push in new policy paper, similarly the Bank of International Settlements (BIS) also published a paper outlining how Crypto and DeFi may destablize finance. 
  7. Italy’s finance minister warns that the attractiveness of US stablecoins poses a bigger risk to Europe than Tariffs.
  8. Regulatory – The STABLE Act has advanced through the House Financial Services Committee, increasing the likelihood of Congress passing legislation to regulate stablecoins (and New Bank Formation Act). Fed Chairman Powell voiced strong support at the Economic Club of Chicago.
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Capital One’s Acquisition of Discover – Set to Reinvent Retail Banking?

An Update on the Future of Retail Banking – April 2025 By Thomas Noyes

With the conditional approval from the OCC on April 17, 2025, Capital One’s (COF) acquisition of Discover Financial Services (DFS) marks one of the most transformative events in U.S. retail banking in over a decade. While prior large-bank deals often focused on scale, this one signals a strategic reinvention. Capital One, long admired for its technical prowess, is poised to blur the traditional boundaries between credit, savings, and checking—challenging the conventional “retail bank” construct. This merger represents not just an expansion of balance sheet or customers, but a redefinition of what banking can look like in the age of AI, embedded finance, and consumer control.

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eCommerce Acquiring – Beyond Tokens – The Next Big Wave of Improvement

Short Blog

© Starpoint LLP, 2025. No part of this site, blog.starpointllp.com, may be reproduced or retransmitted in whole or in part in any manner without the permission of the copyright owner.

Adyen was the largest network “tokenizer” and realized the benefits through enhanced authorization rates and reduced fraud. As I explained in Tokens and Binding 101, this history of tokens in payments is long, with each stakeholder maintaining an ability to tokenize. While all token strategies protect data, network tokens differ in RULES, binding (to a customer and device) and acceptance. For example, Visa’s Cloud Token Framework (CTF) and Mastercard’s Digital Enablement Services (MDES) address 6 key areas:

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Visa Investor Day – The 7 Reasons Why I Invest in Visa

Short Blog

Visa held their Investor Day last week on Feb 20, and I encourage everyone to read through the presentations. Most of you know my strong network bias, V/MA are my top personal holdings. I’m not a financial analyst; my investment hypothesis rests on the strategic need for card networks and their sustainable advantage in meeting those needs. 

Let me provide my top 7 reasons why I am so firmly behind the networks, with references to investor day content and my previous blogs.

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Real-Time Settlement Coming to US Cards?

US Payment Infrastructure is in the midst of completing a major renovation. 

  • The Clearing House (TCH) Real-Time Payment (RTP)
  • FedNow
  • JPM’s ONYX (now renamed Kinexsys)

Let me preempt the #1 question most of you are about to ask “are card volumes at risk”? Nope, why on earth would banks want to walk away from the most profitable retail banking product in the history of man (see Future of Retail Banking)!?

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Winning in Network of Networks: Collaboration

My largest holdings are card networks, and I’m very keen on their continued growth and sustainability of competitive advantage. My confidence is based on five broad themes. 

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Tokens and Binding 101

Let’s talk about tokens. When discussing tokens and payments, it’s important to clarify which category of tokens you’re talking about. Today, I’m not discussing NFTs; instead, I’m discussing card network tokens. It’s hard to believe I’ve been writing on this subject for almost 15 years. For a historical refresh, here are a few of my old blogs

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Networks, Value Assembly and Organizational Structures

Bull Case For Visa and Mastercard 

Very Long Blog.  4 Page Exec Summary. Feedback appreciated. This blog has been my “blocker” as I’ve iterated over the last 7 months. I’ve thinned this down from 31 pages (which no one would read) to 23. No I will never write something this big again.

The thoughts below are an update to my 2016 Small Wins, where I outlined how the forces that have driven scale, and shaped organizations, are atrophying (Transaction Cost Economics, asset intensity, information intensity, finance… etc). Paul Graham’s calls this change Refragmentation, I call it Transformation of Networks.

It’s as if the gravitational constant (the big G) is changing and new forces are driving the formation of new networks influenced by a rapidly evolving world of “weak links”. Information intensity has moved beyond “tweaking” 100 yr old business models to transform the design of industries, communities and people.

Whereas the 2016 blog was more about the “possibilities” enabled by tech, this blog is about the reality of how things will evolve.  

© Starpoint LLP, 2024. No part of this site, blog.starpointllp.com, may be reproduced or retransmitted, in whole or in part, in any manner without the permission of the copyright owner. Also see our Legal/Disclaimer (this is a highly opinionated and partially informed blog).

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