Hello, New York. How are you? Hmm, today I'm going to talk about one big idea, and you're all lucky enough to witness it. The idea is to create an alternative to the system alternative to the system that has dominated for decades for moving money around the world, and this system is called global transaction banking. There is an alternative to it.
This alternative is onchain alternative is onchain , and that's what we've been building for the past four years. But before we get into what we've built and why it works, why it's scaling so quickly scaling so quickly , we need to first understand the evolution of global banking and global transactional banking, and what challenges they present to us now. Although the name is global transaction banking, the reality is that the system is not very global. In fact, it is very local. Most global transactional banking happens locally here in New locally here in New York.
New York is the heart of global transactional banking. Why? Because there are two main types of settlements that mainly take place in New take place in New York. The first is bank transfers in US dollars. Every in US dollars.
Every type of US dollar transfer goes through New goes through New York, and that's about 1.1 quadrillion dollars a year. And most of the payments transactions also take place in a system called CLS, which also settles in Manhattan, New Manhattan, New York, with a volume of $1.8 quadrillion per year. And it's crazy to per year.
And it's crazy to think that this entire global banking system relies so heavily on a central ledger kept at the Federal Reserve Bank of New Reserve Bank of New York. Both the central registry and this federal reserve bank maintain some type of reserves. But whose reserves are these? The reserves actually come from every bank that wants to make payments in US dollars around the world. Wherever they want to go, they must have reserves at the Federal Reserve Bank of New Reserve Bank of New York.
And at the top of the list is the largest bank in the world, JP Morgan. And this is their new headquarters. And the myth is that when it comes to what these banks do, including JP Morgan, people think that banks actually move money. Banks don't move money. Banks do something completely different than moving money, namely they simply manage liquidity.
And what does it mean to manage liquidity? This means that they actually manage a very large balance sheet. And this balance sheet consists of deposits from commercial companies , enterprises, and deposits from people. And this is the main reason why banks, and especially JP Morgan, are fighting to the death against the stablecoin movement, because without deposits, banks do not exist. Without deposits, banks have no liquidity.
Without deposits, banks cannot ensure the movement of capital, especially US dollars, around the world. And this trend has already happened. The trend is already happening. And that is why we need an alternative. Today, all these big banks face three types of problems when it comes to fiat liquidity.
The first is the liquidity. The first is the higher cost of capital. For a long time, the Fed thought they could print money forever. They can do quantum easing, and they can build up the balance sheets of these big banks forever, and they will dominate the liquidity of the entire world. This would help them capture a larger share of world trade.
This kind of game is no longer viable. They must stop quantum easing, tighten monetary policy, and the cost of capital continues to rise. Reason number two is fragmented geopolitics. Because of trade wars, because of tariff wars, because of changes in global trade, fragmentation is happening at a rate that is beyond the capabilities of the big, ahem, banks and U.S.
monetary policy, and more and more countries and more and more national central banks are abandoning the risks associated with Treasury bills. They're going into gold, commodities and other types of, um, commodities and stocks, and that's not really helping the balance sheet, it's actually further fragmenting the balance sheets of these banks, which is reducing liquidity. And the last one is the growth of growth of stablecoins, which is also a very difficult task because it takes away deposits from large treasuries, deposits from large companies, and deposits from wealthy individuals. So all these challenges are not going away, and there is no going back to the old regime, which means that now we have to create a new regime. And if you look at the JP Morgan report, the payments industry report and forecast for 2026 that they released last month, they talk about each individual challenge and how they plan to address it.
At the top, they think that the way we managed liquidity managed liquidity no longer works. We need to make sure need to make sure that liquidity is programmable, liquidity without borders, and they know that's not easy to do with fiat currencies. And then they realize that the Treasury bonds of these big companies cannot operate within the old banking system; they need to always be on Treasury bonds. They need to make calculations every minute calculations every minute , every hour; it is the only way to manage liquidity, to manage a global fragmented system and volatile trade flows. And then they also realize that blockchains are no longer experimental.
They are here to scale, and they need to move as quickly as possible. But they don't know how to overcome this lemma of supporting stablecoins against nuts, because there is no other way to move to the blockchain ecosystem blockchain ecosystem . And the way to solve this . And the way to solve this , as we envisioned four years ago, is through the Human Payi payment network , which is rebuilding the global banking transactional on-chain transactional on-chain by using stablecoins, programmable liquidity, and leveraging yield stores. Profitability stores are not sleeping.
They are a version of 247 standalone Treasury bonds that JP Morgan would like to have access to for its clients. Programmed liquidity does not depend on the weekend. It is always on and not fragmented, and then stablecoins can be settled settled anywhere, anytime. Not dependent on a central registry at the Federal Reserve Bank of New Reserve Bank of New York. And so far, we've been able to prove it with use cases in every major industry.
Credit cards. We started by enabling our first customer to use Rain Cards, which is now the largest and fastest growing automotive solution, to help them connect to liquidity solutions across our network. So they can be settled using Visa network cross-payments. Many of our big clients come from this world. They allow themselves to use stablecoins and replace their backend treasury bonds by leveraging the liquidity of stablecoins, using a just-in-time liquidity solution on demand.
No longer do you need to depend on large global banking solutions for trade settlements. Amazon today uses our solutions to settle payments with its suppliers in Asia. Why? Because they have the same problem. Many Amazon shoppers are located in the United States.
Many sellers are located in Asia. The only way they can actually get money to sellers and suppliers in Asia is to use an alternative system. Otherwise, they would have to hop from the US to the UK, conduct currency transactions and foreign exchange operations in the UK. They will have to wait another day or two. If it's not a bank holiday or weekend to finally settle in Asia, then from Asia they have to go through fragmented banking rails to settle with suppliers at the very end.
It takes two to four days, a lot of money, a lot of people, very cumbersome. Using the PayPal network, they can click a button in the US and the money appears in the supplier's account in Asia. And the last option And the last option is trade financing. As you mentioned, more and more goods are now flowing through alternative routes. Heavy metals, rare earth minerals, even GPUs are now being financed with stablecoins, and they all have the liquidity of stablecoins.
So Payi Stack is actively replacing, as we have already said, global transactional banking. And how they envisioned this stack four years ago when we launched: at the very bottom you should be able to use any transaction layer, any L1, L2. Additionally, you should be able to rely on rely on any currency level, not just one; these can be stable coins or tokenized deposits and tokenized funds. Additionally, you should be able to use any use any level of spending; compliance can be at the top and meet the needs of regional players who need to operate within a regulatory framework. And then the level of liquidity comes into play to provide them with deep, scalable liquidity and stable coins.
And on top of that, you can create can create any use case that all these different global companies depend on. And what we've seen is that over the last two years, implementation has accelerated infinitely. Every major payment company is now implementing PayPal, from Visa to Mastercard, PayPal, Stripe, Western Union, and MoneyGram. They are all rapidly replacing infrastructure. They are quickly implementing stable ratio liquidity and on-chain liquidity.
And we see this in the numbers. Our network has tripled since last year. We are currently seeing a total transaction volume of $14 billion, growing at a rate of $1 billion per month, um, um , um, um, with only $160 million of stablecoin liquidity being used very efficiently, recycled over and over, over again. 8% of organic profitability is generated from this activity; this has been maintained for the past two years. Whether it's summer D5 or winter or winter , we can meet 8% meet 8% organic returns for our investors.
And now, in our systems, over 110,000 depositors who benefit from this, both institutional players and retail, have not experienced a single loan default, even at such a rapid scale, which is unheard of in trade finance. We can programmatically block the full calculation cycle and make everything happen in just a few days. And this is the incredible growth incredible growth that we are seeing today, together with all our global partners. And at the heart of it is this architecture around this token called the PayFi token, which is a PST. PST is a cross-chain omnibus profitability system where deposits are received.
These deposits earn 8% earn 8% returns, accumulating on- chain every minute, and they can access it through various, you know, D5 various, you know, D5 platforms. Um, and that goes into our liquidity pools, and our trade finance, payment finance, and crossbury payments or card network partners can use it when they need liquidity for settlements, using that liquidity, and then returning the funds to us in a day, a day or two. And this capital is being reshuffled and continues, in essence, to generate income and pay out to investors, and it's growing quite nicely. And I'm very excited to announce today that as of an hour ago, all of this infrastructure is now live on the Ethereum mainnet with our launch partners: coined management, Bitwise, Raway, X, Fluid, Morpho, and chain link. And now you can access this PayFi network, which has been running mostly on Salana on Ethereum for the past two years.
Anyone can access the profitability and the network will continue to grow as we have more stable coin liquidity. We will be able to replace more and more global transactional banking operations banking operations , and this will reduce the role of fiat currencies around the world. With offices in four different regions around the world, we are constantly expanding our solution architecture to empower more payment companies, card companies, and trade finance flows to ensure that a world that doesn't sleep can rely on systems that don't sleep. Thank you very much. You can find me afterwards, near the stage, and follow us at Human Finance on Twitter.
Thank you.
Automatic transcript — names and jargon may be misspelled.
