吴说区块链

Compiled by: Gary Ma Wu on Blockchain

Summary
Wu's analysis of this week's macro indicators: Last week, the U.S. May CPI annual rate was 2.4%, lower than expected; this week marks a super central bank week, with attention on the latest interest rate decisions from multiple central banks including the U.S., Japan, and the U.K. Currently, the futures market bets that the probability of the Fed remaining 'steady' this time is as high as 99%. Attention can be paid to updated economic forecasts and dot plots this quarter, which may reveal signals regarding future interest rate cuts.

Last week review

U.S. May seasonally adjusted CPI annual rate is 2.4%, expected 2.50%, previous value 2.30%.

U.S. May PPI annual rate is 2.6%, expected 2.6%, previous value revised from 2.40% to 2.5%.

Author: a16z

Compiled by: Deep Thinking Circle

Have you ever wondered if the $80 billion SEO industry might be coming to an end? The search rules we've taken for granted for over two decades—keyword rankings, backlinks, page optimization—are being utterly disrupted by a whole new set of game rules. When Apple announced the integration of AI-native search engines like Perplexity and Claude into Safari, Google's long-standing distribution monopoly began to shake. We are witnessing the most significant paradigm shift in search history: from the link-based search era to the generative engine optimization (GEO) era driven by language models.

Source: All Things Unsaid 【Introduction】 Overnight, stablecoins suddenly became a hot topic on the streets. What are stablecoins, and will they disrupt the traditional financial system? Stablecoins are not a new concept that exploded overnight; they are a giant that has gradually grown with the industry's development. Recently, they have been catalyzed by the passage of the U.S. GENIUS Act and the listing of stablecoin issuer Circle, bringing them to the forefront of global media and audiences. Therefore, Hazel and her partner Ivy have launched this podcast (Our Two Cents) focused on crypto payments, not out of a whim, but because we firmly believe that a historical turning point has arrived at this opportune moment. From a niche game to an element that cannot be separated from the daily lives of the global public, in the coming years, we will witness blockchain truly rewriting the global payment rules, giving birth to several unicorn companies in the payment sector, improving the efficiency of global value circulation, and providing financial tools that can reach the world for the populations ignored by traditional banks. Of course, in addition to payments themselves, we will also pay attention to related areas, such as RWA, AI Agent payments, and new fresh things that may emerge at any time. In summary, we hope to focus on the combination of crypto and the real world, and stablecoins are undoubtedly an important medium within it. Hazel and Felipe met at a think tank conference in Moscow. Due to sanctions, Visa and Mastercard could not be used in Russia, which made Hazel, who comes from China and has lived in Europe, deeply experience the feeling of being "unbanked," a daily reality for many people in Asia, Africa, and Latin America. Felipe founded Kravata because he saw the potential energy that stablecoin payments could release in a country with less than 50% penetration of bank cards and less than 10% penetration of credit cards, changing people's lives. 1. Introduction This episode features Felipe Montes, the founder of the Colombian stablecoin payment company Kravata, who will provide us with an in-depth introduction to the payment ecosystem in Latin America and what Kravata is doing. Kravata.co is a company headquartered in Bogotá, Colombia, engaged in stablecoin fiat exchange and payment services in Latin America, completing a $3.6 million seed round financing earlier this year, with investors including Circle Ventures, whose parent company Circle is the issuer of the compliant stablecoin USDC. The podcast "Our Two Cents" explores new frontiers in payments and how blockchain reshapes global finance. This is the first English episode of the podcast. Guest Felipe Montes Founder of Kravata, X: @FelipeMontesJ Felipe Montes is the co-founder and CEO of Kravata. Kravata is a B2B payment company based in Latin America that provides cryptocurrency-as-a-service (CaaS). He has been involved in the crypto space since 2013, with a diverse background that includes academia, government, and consulting. Host Hazel Hu Host of the podcast (Our Two Cents), with over 6 years of experience as a financial media reporter, core contributor to the Chinese public goods fund GCC, focusing on the practical application of crypto. X: 0xHY2049; Jike: A heartless Yuyue Host Ivy Zeng Host of the podcast (Our Two Cents), previously worked in VC post-investment, involved in pop-up city and payment, currently responsible for growth in Latin America for a new bank. X: IvyLeanIn; Xlog: ivyheretochill 2. Background of the Latin American Market Hazel: What is the payment situation like in Colombia? What are the most commonly used payment tools in daily life for people and companies in Colombia? Felipe: Colombia has a population of 48 million, with over 50% of people lacking bank accounts, resulting in widespread use of cash nationwide. More and more digital wallets are entering the market, such as Nequi and Daviplata (belonging to the largest banks), where people can pay and open accounts simply using their mobile numbers. These are gradually becoming the most commonly used payment methods. There is also PSE (Programa de Servicios Electrónicos), which belongs to the ACH group and is similar to the ACH system in the United States. PSE supports real-time bank payments, currently processing about 32% of e-commerce payments, although it is primarily used for cash-in rather than cash-out. Credit card penetration is very low, below 10%, which is a trend across Latin America, but debit cards are in use. A new government initiative called Breve is about to launch, which will be a real-time payment system capable of instant settlement between banks, supporting cash-in and cash-out. Other methods include QR codes and mobile wallets, with about one-third of transactions being digitized through payment gateways. Hazel: What are your observations regarding currency depreciation in different Latin American markets? Felipe: A key factor in the Latin American market is the high fragmentation of the financial system. Each country has its own systems and KYC rules, resulting in a lack of interoperability between countries financially. There is no liquidity held between different Latin American currencies; transactions often require first converting to U.S. dollars (usually through U.S. correspondent banks) before converting to the target currency. This process can involve multiple steps and layers of intermediaries. One major reason for adopting stablecoins is that it can simplify this process into two steps: exchanging local fiat to stablecoins through an on-ramp, and then using local liquidity to off-ramp to another fiat currency. Another key reason is to hedge against currency depreciation. For example, over the past ten years, the Colombian peso has depreciated over 50% against the U.S. dollar (from 2000 pesos per dollar in 2014 to currently 4170 pesos per dollar). People need alternatives to save, as U.S. dollar accounts are unavailable in most Latin American countries. Exchanging for stablecoins like DAI, USDT, or USDC through an on-ramp helps achieve this. The only way to buy physical U.S. dollar cash locally is to go to an exchange, but cash is difficult to spend locally. Stablecoins provide availability, allowing for easy sending or off-ramping. In Colombia, there is a large influx of dollars from exports and remittances, leading to a supply of dollars exceeding demand. The official exchange rate through banks is settled with the government. However, unofficial cash dollars from remittances and exports do not participate in this settlement, leading to cash dollar prices being 2-3% lower than the bank rate. This is similar to the "kimchi premium" in reverse. This creates a market for crypto arbitrage: people purchase stablecoins P2P at prices below the official rate, exchange them for dollars on exchanges, and then remit the dollars back through official channels, gaining a profit of 1-2% after costs. Regarding the cost of living, although $1 is equivalent to 4000 pesos by exchange rate, in smaller cities, its purchasing power may be closer to the concept of 1000 pesos compared to the U.S. In large cities, gentrification due to an influx of foreigners is driving prices up. A giant burger costs about $5. The minimum wage is about $400/month. Those earning over $4000/month belong to the wealthiest 1%. Despite high levels of inequality (the seventh highest globally), Colombia is also rated as one of the happiest countries. Across Latin America, currency depreciation is a common trend. Countries like Ecuador and El Salvador have achieved complete dollarization. Uruguay is a smaller, wealthier, and more stable country. Argentina faces an annual inflation rate exceeding 276% in 2023. In Venezuela, the use of the Bolívar has decreased, with people turning to U.S. dollars (through U.S. bank accounts like Zelle), stablecoins, or cash. Economically stronger countries like Mexico and Brazil have also experienced depreciation over the past decade, around 20%. The COVID-19 pandemic has also impacted the economy, with government monetary over-expansion exacerbating this depreciation. The dollar is widely viewed as a hedge and savings asset, similar to gold, but stablecoins also offer additional usability advantages. 3. Kravata's Business Model Hazel: What is Kravata? Can you describe the customer process for our listeners? For instance, if I am a merchant receiving USDC in Latin America, can you walk us through the entire process? Felipe: Kravata is an infrastructure company providing APIs. This enables any applications, super apps, bank apps, digital wallets, or business platforms to offer stablecoin-based services to their end users. For companies that need to exchange currencies between countries, they can connect to Kravata through a web application or API to exchange between their stablecoins and fiat currencies, or conduct fiat-to-fiat exchanges (using stablecoins as an intermediary in the process). Another model is third-party payment capability. A company in Mexico wanting to pay a company in Colombia but lacking an account or relevant knowledge in Colombia can send Mexican pesos to Kravata, which will then pay the recipient in Colombian pesos. In the background, Kravata will convert the Mexican pesos into stablecoins through an on-ramp and then off-ramp to Colombian pesos. Recently, Kravata has focused on deploying its infrastructure to banks, super apps, and neo banks that want to use stablecoin channels but lack expertise or systems (due to reasons including compliance teams, legacy channels like SWIFT, or overly localized operations). Kravata offers a widget that can be directly embedded into their applications. Through this widget, users can convert their local fiat balance (e.g., Colombian pesos) into dollar stablecoins, typically USDC, through an on-ramp. Subsequently, they can off-ramp back to fiat. USDC is frequently used because companies consider it more compliant. Users can save in dollars and off-ramp back to pesos when the dollar appreciates. Kravata has also added virtual account features. Users within the app, utilizing their existing KYC information, will receive a U.S. bank account number and a European IBAN (International Bank Account Number). This allows them to receive international wire transfers directly into their USDC widget within the app. This grants the app cross-border payment and remittance capabilities. Using the received USDC, users can pay third parties internationally or off-ramp to local fiat. Kravata can also provide a prepaid debit card topped up with USDC, allowing for spending anywhere. Additionally, the balance in the account can be connected to yield protocols. This generates yields, which can range from very conservative (like government bonds) to high yields from DeFi protocols (currently annual percentage yields (APY) of 4% to 8-9%). Kravata takes a small portion of this but gives most of the yield to users to make the product more attractive. This represents the full suite of API services offered by Kravata. Ivy: Does Kravata exchange USDC for local fiat? How does the exchange process occur? Do you work with banks? Felipe: Kravata can handle different stablecoins and tokens, but they have a close relationship with investor Circle. They have accounts with Circle through various corporate entities in Colombia, Mexico, Chile, Poland, and the United States. Kravata obtains licenses in regions with clear regulations and partners with third parties for liquidity in regions with vague regulations. In Colombia, they primarily use an internal liquidity book. Their B2B cross-border payment business generates off-ramp demand while the embedded app widget solutions generate on-ramp demand (for savings). They internally settle these cash flows, using USDC/USDT from off-ramp users to pay on-ramp users and vice versa, which lowers costs. When demand is unbalanced on either side, they will seek banks for foreign exchange. They can exchange local fiat for dollars and mint USDC when needed, or redeem USDC and conduct local foreign exchange for more fiat. Kravata's operations are built on four key models: Compliance: A team responsible for KYC, KYB (Know Your Business), transaction monitoring, customer segmentation, and using algorithms for blockchain analysis. Liquidity: An operational team made up of Python programmers and neural networks responsible for managing settlements and seeking optimal exchange transactions. Custody: Providing clients with segregated wallets and flexible fee models (based on assets under management (AUM), transaction volume, or active wallets). Hyper-localized payment methods: Utilizing traditional fiat channels for cash deposit and withdrawal (cash-in/cash-out) through APIs. All their products are based on these models developed since 2022. Ivy: Besides Colombian pesos, what other currencies does your on/off-ramp service involve? And what different chains? Felipe: Currently, Kravata's services involve U.S. dollars, Mexican pesos, Venezuelan bolivars, Colombian pesos, and euros, as well as stablecoins like USDC and EUROC. They support all combinations of exchanges between these currencies and stablecoins. For stablecoins, USDT supports Ethereum, Tron, Solana, and Polygon networks. USDC can be used on multiple chains. Ivy: What is the latest transaction volume or annual on-ramp/off-ramp service volume for Kravata? Felipe: Over the past two years (2023-2024), Kravata has processed a cumulative transaction volume of $260 million. Their highest monthly transaction volume exceeded $50 million. This volume primarily comes from on-ramp and export services. Ivy: As you mentioned, some of your clients are cross-border merchants, what types of clients do you have? Felipe: Kravata initially served crypto-native clients, such as exchanges, OTC desks, and digital wallets. They then shifted to serve traditional payment companies. Their end users include companies engaged in service imports and exports (more than physical goods), payroll companies, franchises needing to transfer funds to pay fees (such as Visa/Mastercard fees), lending protocols that raise funds internationally for local lending, and food companies purchasing supplies in different countries. With the launch of embedded widget solutions, they are now onboarding banks, neo banks, and new brokers. Overall, our client base is divided into four main areas: crypto-native companies, fintech companies, retail companies, and traditional financial institutions (incumbents). Hazel: What is your main source of revenue? How many employees does the company have? Kravata has 28 employees. Since the beginning of 2023, they have generated $2.2 million in revenue. Revenue comes from multiple channels in their infrastructure business model: on-ramp and off-ramp fees, KYC service fees, custody fees, virtual account fees, card fees, and yield service fees. 4. Competitive Landscape Hazel: We must talk about competition, as payment competition is very fierce. Recently, I've seen news that Stripe has opened its stablecoin financial accounts, and Bridge is collaborating with Visa. So I'm curious, does this bother you? Felipe: No, it does not bother us at all. Our strategy is to collaborate with these large players, leveraging their technology, while Kravata handles localized operations. This business requires local expertise to manage compliance, banking relationships, cultural understanding, corporate structures, and addressing the informal market (which accounts for 50% of the entire market). Large companies find it difficult to accomplish this alone, just as we see foreign banks like Citibank and Scotia Bank struggling in Latin American retail banking. The real competitors are not similar companies; they are cash and the informal market—people storing their savings in physical dollars. This is where the massive market opportunity lies. Companies that understand this will grow. Kravata positions itself as a participant that helps banks and fintech companies quickly adopt stablecoin services, acting as middleware that enables clients to integrate stablecoin channels in six months or less, avoiding the years required to reinvent the wheel. Kravata provides licenses, integration solutions, channels, white-label services, compliance frameworks, and educational support. Ivy: Apart from global competitors, let's return to Latin America. What is the current landscape of fintech crypto payment startups in Latin America? Are there many companies in this field? Felipe: There are not as many companies in this field as there were a few years ago. The early market primarily consisted of large exchanges like Bitso, Binance, Ripio, Mercado Bitcoin, and Buda, which are now expanding. The second phase saw the emergence of market makers and OTC desks serving crypto arbitrageurs and traders in need of off-ramps. Around 2022, consumer applications focusing on saving in digital dollars (such as DollarApp and Lithio) began to grow. Recently, large financial institutions and neo banks (like Bancolombia partnering with Wibmo, Lulo Bank) have started embedding crypto options in their applications. This indicates to regulators that cryptocurrencies and stablecoins are becoming part of the financial system. Kravata's role is as middleware, enabling other financial institutions and fintech companies to quickly integrate stablecoin services without extensive development time. Hazel: All the systems we are talking about are still based on Visa and Mastercard systems, right? Will the entire system still be based on this old system? Felipe: To be completely independent from traditional systems, the entire supply chain needs to operate on stablecoins, for example, farmers being paid and payment suppliers both using stablecoins. Currently, converting to fiat is necessary because existing regulations in most countries require traceability and payments to be made in fiat. The debate around local stablecoins and Central Bank Digital Currencies (CBDCs) is related to this. Visa and Mastercard are expected to be around for the long haul. They are already entering this space, using systems like Visa Direct and B2B Connect that leverage blockchain-like layers to transmit cross-border settlement information, although they may not necessarily use stablecoins. However, in regions like Latin America, Southeast Asia, and Africa, there exists a huge market among informal, unbanked populations and in cross-border transactions that do not use cards. Stablecoins can play an important role in this market. As previously mentioned, the real competitors are not necessarily cards, but cash. 5. Regulatory Environment Hazel: What is the local regulatory situation like? For example, for Kravata, what licenses do you know are actually needed to operate in Colombia? Felipe: Local regulations in Latin America have changed significantly since 2021. Brazil has a well-established crypto law, and the central bank supports blockchain initiatives. Chile has implemented a fintech law that provides licenses for financial intermediaries and custody; Kravata has applied for these licenses. Chile is considered the most advanced country in Latin America in terms of regulation. Mexico has an earlier fintech law that includes a money transmission license and establishes a vulnerable activity registry for cryptocurrency companies. Bolivia initially banned cryptocurrencies but has since lifted the ban and is now regulating them. Peru recently authorized its largest banks to custody and sell digital assets. Argentina is becoming more open to regulation. El Salvador offers VASP (Virtual Asset Service Provider) licenses, which many Latin American companies are obtaining. Bermuda also offers various licenses. Generally, there are three types of licenses to consider: Emission license: for issuing tokens or stablecoins. VASP license: for exchanges between crypto assets and fiat money. Money Transmission license: for payments. Kravata is obtaining the fiat on/off-ramp license and the money transmission license. They currently do not apply for emission licenses as they focus on distribution and transmission rather than issuing their own tokens. Ivy: How do you establish relationships with all these financial institutions and regulators? They are completely different from web3. Felipe: Building relationships in the Web3 space is often more open than in traditional finance. In banking, if you don't belong to that circle, an open mindset and networking are crucial. Kravata has advisors who were former banking executives. I previously held a position as Deputy Minister of Education and established connections with the president of the banking association and government officials who can facilitate introductions. Building relationships with these people requires face-to-face meetings and lunches to gradually establish trust. The key is to prove that the company is managed by mature, business-minded individuals who understand the importance of compliance and risk, not just young tech developers. Compliance officers play a critical role in banking relationships. Kravata sponsors and participates in risk and compliance activities, sometimes collaborating with international organizations to position itself as a highly compliant local partner. Banks often view new transaction businesses like crypto/payments as small-scale compared to their large credit and loan businesses. The challenge is to convince them that collaboration will not jeopardize their core business. This requires demonstrating strong standards, compliance procedures, risk management, and service level agreements. Building this trust takes time, but once established with some banks, it becomes easier for others to follow. Key milestones include embedding services into regulated neo banks and collaborating with large traditional banks. Hazel: What questions do they typically ask? Felipe: Banks ask all sorts of questions. For instance, they may question the risk of users holding USDC. This requires explaining the reserves of USDC, where the dollars are held, audits by companies like Deloitte, and mentioning familiar names like Bank of New York Mellon or BlackRock. Nevertheless, they still often perceive this as high risk. At the same time, you need to educate banks on blockchain analysis. Many are unfamiliar with blockchain explorers. You need to explain that blockchain is not anonymous, wallets can be blacklisted, and there are software solutions like Chainalysis and TRM Labs. Demonstrating Kravata's compliance processes is a recurring topic. Sometimes, banks even propose using Kravata as their compliance provider, but if Kravata also handles their transactions, it creates a conflict of interest. 6. Financing and Future Development Hazel: You received investment from Circle, and I know you also received investment from a Chinese crypto investor named IOSG, right? I think Chinese people are quite familiar with that name. I'm curious how you connected with them. Felipe: I was introduced to the IOSG team through an angel investor from Angel Dao, who had previously invested in Kravata. After an initial online call, I had the opportunity to meet some of their team members offline. I believe IOSG appreciates our explanation of why Web 2.5 (embedding payment and savings services into existing applications) is the right path for Latin America currently, as the market is not yet fully prepared for complex Web3 activities like DeFi using MetaMask. They see that Asian venture capitalists value under-penetrated markets and capital-efficient growth models, and Kravata's infrastructure model aligns with this while addressing the fragmentation issues in the Latin American market. The decision-making process for IOSG's investment was quick, taking about a month. Hazel: You are also looking for Chinese or Asian investors for the next round of financing. Felipe: Yes, Kravata is definitely looking for Asian investors for the next round of financing. There are two main reasons: Market understanding: Asian investors have a strong understanding of the Latin American market, as Southeast Asia shares similar characteristics, and they can provide valuable advice based on experiences from companies in that region. Connecting the world: There is significant growth and potential in connecting business and transactions between Asia and Latin America. Building these connections between the regions is crucial for the future. Ivy: After you complete the next round of financing, what will be your top priority for development? Felipe: The top priority after the next round of financing is to embed their widget into applications covering about 100 million users in Latin America. The goal is to connect Latin American users to stablecoins through applications they already use and are familiar with. Ivy: My final question is, what advice do you have for Chinese crypto/fintech companies considering entering the Latin American market? Felipe: Advice for Chinese companies entering the Latin American market: Find local partners: This is crucial for understanding the market, obtaining necessary infrastructure and channels, and navigating the regulatory environment. Understand currency volatility: Do not simply replicate Asian models; understand the driving factors of local currency fluctuations. Consider infrastructure: Building in the infrastructure space may offer more long-term defensibility than B2C applications, which require a deep understanding of local consumer behavior. Clarify market strategy: If your strategy is based on cost (a common approach for some Chinese applications/products seeking to expand), you must understand the informal market to reach the truly large market. If your strategy is high value/high quality, you need connections to access the affluent niche market. Prioritize relationship-building: In Latin America, personal relationships are very important. It is difficult to do business alone; you need partners or players. Due to fewer established pathways, lobbying and meeting influential people may be more challenging than in other regions. Hazel: Do you have any recommended individuals or projects that you think we should interview? Or do you have any questions you'd like to ask others? Felipe: I have many questions about the Chinese market. I am very interested in understanding how Alipay grew, particularly the blockchain technologies they apply to businesses. I feel that the "Western" market has not fully grasped these cases. I also recommend paying attention to other successful Chinese companies, which may not be as large as Alipay but are important players, such as Reap. For Latin American guests, he recommends people involved with local stablecoins, B2C applications (such as Lithio, DollarApp, El Dorado), and infrastructure providers (based on blockchain or APIs). Suggested themes for future podcast discussions include: The growth of Chinese payments/fintech: How did Alipay and Reap achieve their success? How do banks view stablecoins, whether in Latin America or in places like China and Hong Kong? He is curious whether the situation in Hong Kong is similar to that in Latin America, where only a few banks are interested. How do traditional companies (large e-commerce, food, retail companies, like Walmart in Asia) view stablecoins, are they willing to use them, and what methods are they currently using to manage funds? Understanding this can help the ecosystem identify growth areas. Hazel: It's hard to say goodbye, but our conversation ends here today. Thank you, Felipe, for taking the time to join us and share your insights on Kravata and the Latin American crypto payment landscape. If you are an investor seeking a Latin American crypto payment portfolio, or a project looking to enter the Latin American market, I hope this episode has been helpful to you, and please feel free to reach out to us to connect. You can find our contact information at the bottom of the screen.

According to Wu, the Financial Secretary of Hong Kong, Paul Chan, pointed out in his latest essay (Accelerating Forward and Sailing Steadily) on June 15 that the development of digital assets has also driven the related businesses of financial institutions. For example, the total trading volume of digital assets and related products by local banks reached HKD 17.2 billion last year; by the end of last year, the total amount of digital assets held in custody by banks reached HKD 5.1 billion. In response to the latest developments and changes in the situation, we will soon issue a second policy declaration on the development of digital assets, outlining the policy vision and direction for the next steps. A series of specific measures include better integration of the advantages of traditional financial services with technological innovations in the digital asset field, enhancing the security and flexibility of digital assets in real economic activities, and encouraging local and international enterprises to explore innovations and applications of digital asset technology. Hong Kong is cautiously advancing the development of stablecoins, providing a new paradigm for the global stablecoin market, and also reflecting our role as a firewall and experimental field under the One Country, Two Systems principle, providing experience and references for the country's financial development.

1. SharpLink Gaming acquired 176,270.69 ETH for $463 million, making it the second-largest holder after the Ethereum Foundation link

SharpLink Gaming (SBET) announced the acquisition of 176,270.69 Ethereum (ETH) for a total price of approximately $463 million, with an average purchase price of $2,626 per coin, making it the publicly traded company with the largest amount of ETH held globally, second only to the Ethereum Foundation. The company stated that currently over 95% of its ETH holdings have been used for staking and liquid staking to support the Ethereum network and earn native yield.

2. The biometric authentication project World will launch in London this Thursday link

Compiled by | Saoirse, Foresight News

The economic logic of the internet has quietly changed. As the open web gradually shrinks into an 'input command bar,' we must consider: will artificial intelligence lead us toward an open internet or into a maze of new payment barriers? Will control lie with large centralized enterprises or with a broad user base?

This is precisely where Crypto comes in. We have discussed the intersection of AI and Crypto multiple times — in short, blockchain is a new paradigm for reconstructing internet service architecture, enabling the creation of decentralized, trusted, neutral, and user-owned web systems. By redefining the economic rules that support existing systems, blockchain provides an effective way to counteract the centralization trends in the AI field, achieving a more open and resilient internet ecology.