Ty Danco
8.3K posts

Ty Danco
@tydanco
Long suffering Browns fan, looking for redemption





U.S. Treasuries are having their best year since 2020, and the investors who had confidence and faith in President Trump’s economic policies have been richly rewarded. Never bet against @POTUS or America! 🇺🇸





We’re watching crypto and fintech collide—there are lots of debates around whether stablecoins can truly dent the dominance of card networks. Fintech camp says: no chance. - Credit cards are sticky. Perks are too good for consumers to switch. - Merchants always flirt with cheaper rails. Debit, ACH, RTP—they’ve all existed. None replaced credit. - Crypto rails have existed via Stripe, $SHOP, etc. for years—yet traction is near-zero. - For most C2B retail payments in developed markets, stablecoins are a “solution looking for a problem.” - Any traction will take years, and likely be limited to cross-border or unstable-currency markets. Crypto camp says: LFG. - Cheaper. Faster. Programmable. - V/MA are dead. Take rates compress. Everyone wins—except the incumbents. Meanwhile, in the real world: WSJ reports $AMZN, $WMT, $EXPE, and airlines are exploring issuing their own stablecoins Stripe x $SHOP just launched stablecoin payments $V, $MA, $PYPL are making moves too All while stablecoin legislation inches forward in Congress 🔴First principles: what does it take for a retail payment rail to work? 1/ Instant “yes/no” authorization — so the merchant knows immediately whether to ship. 2/ Irrevocable or network-guaranteed funds — once approved, the payment is either final or the network guarantees it. Even if the shopper later disputes the charge, the network resolves it internally; the merchant doesn’t risk a clawback. 3/ A liability-shift framework — to protect the shopper. Under Reg Z and Visa/MC rules, the issuer refunds the cardholder first and only then seeks repayment from the merchant if needed. 4/ Ubiquitous tooling and a strong economic loop — one-button integration, seamless APIs, and enough margin to keep banks, PSPs, and merchants engaged. Why didn’t other payment rails break through? ACH was never an option: ❌ No instant authorization (fails #1) ❌ No guaranteed funds (fails #2) – Credits can be recalled; debits can be reversed up to 60 days if marked “unauthorized.” Merchants who already shipped can lose the money. RTP had promise but never took off: ❌ No liability shift (fails #3) – No fraud protection. Get tricked? The loss is yours. Banks may “try to help,” but they’re not liable. ❌ Poor UX/tooling (fails #4) – Consumers are used to cards that autofill. RTP’s “push” model (scan a QR, approve) feels clunky. But I think the real issue was no economics. A few cents per payment won’t fund rewards or fraud ops. So banks bury RTP deep inside bill pay. 🪙Now comes stablecoin. On paper, it’s no better than RTP—it lacks #3 and #4. So why might it win? One word: incentives. Every $100 in stablecoins can earn ~$5/year in yield (via T-bills). Issuers can share that yield with PSPs, merchants, and even fund buyer protection. The revenue under card rails is enormous: Total U.S. card volume: ~$12T annually $5T debit (avg. 0.8%) + $7T credit (avg. 2.3%) Gross fees: ~$200B Rewards back to consumers: ~$50–100B (points, cashback, miles). Likely, much of it goes unused. If stablecoins captured just 20% of card volume and yielded 5% → that’s $120B/year in incentives to share with the ecosystem. The rest of crypto’s appeal is real, but all secondary IMO: - Global by default - Programmable payments - Composability + wallet-native UX What about the missing features? I see those as frictions that can be fixed: - Push vs. pull? Push is native, but "pull" can be mimicked via wallet allowances - Fraud & liability? Not native, but buildable—escrow, insurance pools, dispute layers - “I want card rewards” → What if the item is 3% cheaper instead? - Consumer wallets? Merchant tools? Yes—still friction points. But solvable. So why is this time different? 🔴Clear incentives + 🔴Regulatory clarity The technical readiness has always been there. Sometimes disruption needs a breakthrough technology. Other times, all it takes is decent tech—plus the right incentives and regulatory greenlight. Imagine a world where you can either: Get 1–2% cashback or Just pay 2–3% less Both are frictionless. Which would you choose? I do have a soft spot for real tech disruption. So yes—I believe crypto and fintech stacks will converge. And yes—I’ll be the first to pay with stablecoin. :) open.substack.com/pub/robonomics…




















