Sam Kazemian - The Stablecoin Singularity - TOKEN2049 Singapore 2025

Today I'll be talking about stable coin singularity or the hyperstable coinization of everything. And so first I actually just want to review uh this slide from the last keynote I gave at uh token 2049 which is that I said before the genius bill actually passed which is the landmark legislation legalizing payment stable coins uh USD stable coins. I said that the actual uh genius legislation is not just a law. It's a new era. After this bill passes, you will see companies, banks, everyone announcing that they're either using stable coins or minting their own branded ones and exploring issuance.

And I I think that that prediction worked out uh pretty well. In fact, this morning uh Stripe and Bridge, which is actually a partner with Fracks as well on our products, announced three uh or four new issued stable coins. Phantom Wallet being one of them and uh a few others. And so I think that it's really important to think about in in the coming months and in the next year or two that everything is going to be hyper stable coin. But what does it exactly mean and what does it lead to?

That's uh what this talk is going to be about. So the first thing is that stable coin payment use cases are kind of on a spectrum, right? If you for example use uh cards, right? and you're actually a customer and you want to buy a bunch of products, you basically have a customer to merchant relationship, right? If you actually are buying things from Amazon or uh point of sales, coffee, all of these things, if you use for example a card or a payment processor like World's Pay uh or Stripe integrates your stable coin, any merchant can actually accept your stable coin, whether it's through Visa cards, Stripe, Mastercard, World Pay, all of this stuff, right?

But as you approach the customer to customer or P2P spectrum, uh it's a little bit different, right? And so for example, I have like Zillow and eBay there, not because of the specific products, but the actual type of transactions that happen on those platforms, right? Real estate uh is one of the most P2P things, right? You have an agent representing both sides. Uh it's a completely P2P exchange, eBay, people buying things from each other.

It's much harder for the stable coin to actually be abstracted away, and it's much more uh moneylike. stable coins that are much more moneylike are likely to be used in the uh this side of the curve in the P2P world rather than the uh customer to merchant spectrum. And the second concept to go over is that I think there's there's basically going to be two types of stable coins as everything proliferates into hyperstable coinization. Um I've been in crypto for a while. has been out for about like uh 5 years and I remember in crypto when there was like three or four types of stable coins decentralized algorithmic seatcoin and all of these kinds of classifications.

I think we're going to see all of those things essentially collapse down to two. And what that means is there's going to be stable coins that are actually used for payments. And the high preference for payment stable coins is going to be fiat coins. essentially riskless stable coins that are either regulated, licensed, or fiat coins that are used everywhere as money like Tether. And then there's going to be yield bearing stable coins which obviously by definition have risk if they pay anything above the risk-free rate.

And that's for example like our uh SFRAUSD stable coin. FRA actually has one of those and it allocates to defy uh carry trade CDPs all of these places that cryptos made available that are very very good yields risk adjusted. uh for example right like Athena is a famous one uh USD AI actually has come out with um a really cool yield mechanism for funding uh AI GPU loans right and so these two types of stable coins I think are going to be the main categories and the way that applications and inter and customers interact with them is going to be the the main difference maker of who succeeds and who's used and who grows And of course, uh, no discussion of stable coins would really be, uh, relevant without talking about all of the stable chains that have recently come out. Um, you might have heard of, uh, Plasma, Fraal, our own, uh, hyperformance chain, Tempo from Stripe and Bridge, and Stable, which is the the Tether chain. All of these chains actually are essentially not credibly neutral technology systems but more offering of valuable deals of stable coin commerce right so zero transaction payments uh privacy uh enabled transactions fast lanes all of these things and unique relationships with merchants for example these chains are essentially for the stable coin payment system to actually offer unique opportunities, lower interchange fees, no type of fees between certain type of merchants and and customers.

And I think the important thing to really grasp about these stable chains is that they're not exactly competitors in every sense. In fact, like one of the examples that I like to give is like Apple and Google might compete in iOS and Android operating systems. If you own an iPhone, you probably don't own an Android. But if you have a Mac computer, you could use Chrome as your web browser. I do, right?

Chrome is not competitive to Mac. Like you could imagine a world where Apple might have banned the Chrome web browser, but they don't because it's symbiotic. And so I think that's the main difference with these stable chains is that issuers, merchants, and everyone in between will actually integrate with multiple of these as their features and deals are useful for them. and they're not a technology competitor where it's either Bitcoin versus Ethereum more uh credibly neutral here or there. It is more about what actually gets the job done.

And so now that we've talked about different types of stable coins, stable chains, hyperstable coinization, uh the main view and prediction for this talk, this time at uh token 2049 is that we think at FRA that stable coinization brings the super app platform to reality. And it's a great leadin from Kane previously uh up here. Uh we promise we didn't coordinate anything. In fact, we didn't even know the title of each other's uh presentations, but just goes to show you that in fact, we think that the world in every aspect is going towards this. And stable coinization actually brings the rise of super apps closer and closer to reality.

And for everyone in Asia, super apps actually might already be huge here, right? Like Alip Pay, WeChat, all of these things that people talk, pay their bills, pay their taxi, like grab, uh they can do groceries, all of these things here. But in the US and in Europe, it's a little bit different, right? You might have the Starbucks app, McDonald's, you might have all these different rewards and and things that are not actually funible with each other. But in a world where there's McDonald's USD or Starbucks USD, there will have to be a central place you can have all of these in a wallet, convert them one to one, have them be interoperable, abstracted out, and be used in the most productive locations if you want the best deals and the best deals.

And so we think it fracts that there will be few super apps some for example for for trading crypton natives like infinex and then also the actual stablecoin super app and so we're announcing fracknet here and fracknet has been a thing we've been working on for the past almost eight months even before all of the tenative trends uh were were announced and and uh genius past and any of these stable coins were uh announced by companies It is essentially a Neo Bank super app. You're able to use any major stable coins and you're able to actually convert one to one, spend them with virtual credit cards and we're going to announce some card partners in the near future. Uh this is essentially the full stack neoanked application. What it is is that you can use it with any major stable coin including obviously our own fraud, but you don't have to. You can go onetoone between all all of them including RWA partners that we have that are genius compatible like black rocks biddates USB wisdom tree and more coming and you can also earn yields in your non-custodial uh wallets.

You can either connect your wallet or it is also an embedded wallet so you don't have to actually download uh additional web extensions or anything like that. The other thing is that because of our banking relationships, we actually can issue virtual accounts to anyone that has a fraet application, right? So if you have an account, you get a routing number and a bank account and you don't even need to tell anyone you use stable coins. You say wire this money, you'll actually receive it in FRAUSD stable coins. Everyone will just think they're wiring your bank account.

And you can wire out money directly to them as well. And it's just like magic. It is abstracted out. It is entirely uh a a bank account. And so you won't need uh a bank account yourself or for your company or organization.

It also has the highest reward spendable cards with all major stable coins including USDC, USDT, FRA USD and also it has uh free highfrequency payment transactions on both our FRAL chain and uh the the new announced Tempo. FRA is a release partner in Tempo and so we've been collaborating with them on uh free transactions and uh additionally if you use Tether of course uh stable is the the chain for free tether transactions and that will work in the near future as well. Um there's also a lot of additional token rewards rebates and additional kind of features that we'll announce as we come come to release. Uh, another one that I'm actually really interested uh and is is very very new is actually working in the United States to have direct real estate transactions end to end directly from payment agent representation title clearing and literally it would be as simple as browsing properties like on Zillow taking a uh open escrow button sending stable coins and it will be really really cool once we ship that in about uh 2 to 3 months and I'm excited to announce Today the actual frack wait list is now officially live. So if you uh want to join the wait list uh sign up with an email uh there might be or might not be tokable rewards for uh early participants and um you'll be able to follow the news on the full roll out and features offend as well as our uh partnerships with car companies uh US real estate giants and uh others.

So

I leave you with this uh meme which is that everything will be uh hyperstable coinized but unlike Woody here don't dismay because the more stable coins there are the more important super apps will be there will have to be a place that these are all abstracted out that act as a universal account layer universal yield savings payments and full integration with everything that you need to buy or or sell with stable coins interact with DeFi savings yields and each and every stable coin that's announced like the four Stripe and and Bridge announced today there will be more or likely be many many things like Starbucks and all the other above there will be stable coins everywhere but that is the future we're going to and the future that is amazing is that super apps like Fraet like Infinex before us they will abstract all of that away into a universal account that everyone can use and everyone can benefit from and everyone can earn yield and rewards. So, thank you