This episode of Stableminded is a MASTERCLASS in cross-border payments.
Berhan, a 15-year entrepreneur and founder, is building Keyrails, a stablecoin infrastructure company connecting emerging markets to global financial systems.
Berhan shares his extensive experience in the stablecoin ecosystem since 2018, discussing how stablecoins are transforming cross-border payments, particularly for emerging economies facing limited access to dollar liquidity.
He explains the challenges of traditional payment systems, the "sandwich model" misconceptions, and how Keyrails is building infrastructure to make international payments more efficient, faster, and cost-effective.
The conversation explores the recent tipping point in stablecoin adoption, the importance of named accounts in risk management, and the future of tokenized assets beyond just payments.
Key Takeaways:
- Paradigm Shift: Stablecoins represent one of the biggest financial innovations in the last decade, functioning as a "quantum layer" that exists everywhere until it collapses into fiat at the transaction point.
- Emerging Market Focus: Traditional financial systems fail emerging economies due to correspondent banking limitations and dollar scarcity, problems stablecoins can solve.
- Beyond the Sandwich Model: Simply converting fiat to stablecoins and back isn't sufficient - the model requires understanding cross-border infrastructure, liquidity, and regulatory constraints.
- The Three Models: Cross-border payments operate through SWIFT, pre-funding (nostro accounts), or net-offs, with stablecoins creating a fourth option with unique advantages.
- Trump Effect: The recent regulatory shift and political changes have created a "tsunami" of interest in stablecoins from traditional financial institutions.
- Banking Risk Transfer: The Bridge model of using named accounts paired with stablecoins shifts risk from banks to clients, enabling greater access for emerging markets.
- Beyond Payments: Stablecoins are the foundation for tokenizing other assets, with the potential to unlock trillions in value across global markets.
Key Chapters:
🌱 04:29 — Misconceptions About Stablecoins and the Sandwich Model
🏦 08:16 — The Three Ways of Moving Money Across Borders
💵 13:36 — The Critical Dollar Shortage in Emerging Markets
⚡ 17:48 — How Local Banks Create Currency Against USD
🌍 22:28 — Where Stablecoins Actually Work vs. Don't Work
☁️ 30:10 — Stablecoins as the "Quantum Mode" of Dollars
💼 33:36 — The Future of US Local Payments and Tokenization
🧩 40:09 — The Essential Role of Stablecoins in Asset Tokenization
🔍 44:22 — Addressing the $450B Credit Deficit in Africa
🚀 51:03 — The Bridge Model and Banking Risk Transfer
🛣️ 58:35 — Keyrails' Global Connect Product and SWIFT Integration
This episode provides a deep dive into how stablecoins are revolutionizing cross-border payments, particularly for emerging markets, and how Keyrails is building infrastructure to connect these economies to the global financial system.
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Built by Stable Studios 🟩
Hosted by: Drew Rogers
The content of this podcast is for informational purposes only and does not constitute financial, investment, or legal advice. Always consult with a qualified financial advisor or professional before making decisions based on the information discussed in this episode.
