Charles Yoo-Naut: The financial system is moving towards tokenization, stablecoins can transform cross-border investments, and infrastructure is the key to crypto growth.

Important takeaways

• The financial system is moving towards tokenization, stablecoins are poised for significant growth.
• Currently, only 1% of US dollars are stable coins, which shows great potential for growth.
• Stablecoins offer a faster, cheaper alternative to cross-border investment compared to traditional banks.
• Crypto-native businesses face challenges in leveraging their assets due to poor payments.
• The lack of usability and usability of stablecoins is a significant bottleneck for their adoption.
• Transaction networks like Visa can make stablecoins globally acceptable.
• The banking challenges of crypto businesses have led to the development of critical infrastructure.
• The crypto space is expected to grow exponentially, presenting opportunities for infrastructure providers.
• Exchange revenue is generated from merchant fees, which are shared between issuers and partners.
• The company experienced rapid growth after launching its infrastructure and APIs.
• Visa has been forging partnerships in the crypto space.
• Stablecoins can reduce inefficiencies in the flow of money, which benefits consumers.
• The development of payment systems will take place without changing consumer habits.
• Asset tokenization can simplify complex processes like home loans.

Guest introduction

Charles Yoo-Naut is the founder and CTO of Rain, a stablecoin infrastructure company valued at $2B. He founded Rain in 2021 after selling his previous startup to Intuit, where he spent four years scaling financial products. Under his leadership, Rain raised $250M, partnered with Visa as a master network member to issue crypto cards, and built infrastructure enabling real-world crypto use.

The inevitable rise of the token

• The financial system is definitely moving towards tokens, with the greatest growth potential of stablecoins.

  – Charles Yoo-Naut

• Only 1% of US dollars are stable coins, which shows great potential for growth.

• The expansion of the financial system will be a sign of the inevitable.

  – Charles Yoo-Naut

• The token trend is expected to change the financial system significantly.

• It’s still like 100 x potential growth from where we are now.

  – Charles Yoo-Naut

• Tokenization is expected to improve the efficiency and accessibility of financial services.
• The transition to a tokenized system is seen as a natural evolution of the financial environment.

• I feel like the expansion of the financial system will be done by tokens.

  – Charles Yoo-Naut

Stablecoins as a cross-border investment solution

• Stablecoins offer a faster and cheaper alternative to cross-border investments.

• You can invest in a startup anywhere in the world and get it stable in seconds for a fraction of a cent.

  – Charles Yoo-Naut

• Traditional banking methods are limited to facilitating international transactions.
• Stablecoins offer significant advantages over traditional banking in terms of speed and cost.

• Stablecoins are the best way to access dollar savings.

  – Charles Yoo-Naut

• The efficiency of stablecoins in global investment is a significant advantage.
• The use of stablecoins can greatly improve the process of sending money.

• You just send someone a stable coin and it’s fast.

  – Charles Yoo-Naut

Overcoming challenges in crypto banking

• Many crypto-native businesses face challenges in operating their assets due to poor liquidity.

• They couldn’t really spend the wealth they had especially at that time.

  – Charles Yoo-Naut

• Infrastructure development has been driven by banking challenges in the crypto space.

• We ended up building a lot of infrastructure that was really useful for other use cases.

  – Charles Yoo-Naut

• Regulatory challenges in the US are impacting banking relationships with crypto businesses.
• The need for better banking solutions for crypto-native businesses is critical.
• Infrastructure development is critical to overcoming banking challenges in the crypto industry.

• It was difficult for them to open a bank account in the US especially if you have something in crypto.

  – Charles Yoo-Naut

Improving the usability of stablecoin by using existing networks

• The lack of usability and usability of stablecoins is a significant bottleneck for their adoption.

• When I send it to my mom, it’s just like a nice souvenir.

  – Charles Yoo-Naut

• Using existing networks like Visa can make stablecoins globally acceptable.

• If we can find a way to make stablecoins used on a Visa card, you immediately open up hundreds of millions of merchants.

  – Charles Yoo-Naut

• Improving usability is critical to the mainstream adoption of stablecoins.
• The integration of stablecoins into payment networks can improve their accessibility.
• A strategic approach to improving the usability of a stablecoin is essential for its adoption.

• Using networks like Visa can make stablecoins accepted by millions of merchants.

  – Charles Yoo-Naut

The role of infrastructure in the growth of crypto

• Banking challenges for crypto-related businesses have led to significant infrastructure development.

• We ended up building a lot of infrastructure that was really useful for other use cases.

  – Charles Yoo-Naut

• The crypto space is expected to grow exponentially, presenting opportunities for infrastructure providers.

• We started making changes to be like this infrastructure provider that equips other companies.

  – Charles Yoo-Naut

• Infrastructure is essential to support the growth of the crypto market.
• Infrastructure development can drive innovation in the crypto space.
• Infrastructure providers play an important role in expanding the crypto market.

• The crypto space is expected to grow exponentially, presenting opportunities for infrastructure providers.

  – Charles Yoo-Naut

Visa’s operating position in the crypto space

• Building a partnership with Visa requires patience and communication.

• You have to actually navigate to the visa that is Visa and like swipe right press the appropriate buttons.

  – Charles Yoo-Naut

• Visa has been aggressive in forging partnerships within the crypto space.

• They have been aggressive in their crypto relations.

  – Charles Yoo-Naut

• Visa’s operating position is important for understanding market dynamics.
• The strategic efforts required to establish relationships in the crypto industry are significant.
• Visa’s approach to integrating emerging technologies is remarkable.

• Visa has been aggressive in forging partnerships within the crypto space.

  – Charles Yoo-Naut

Seamless integration of stablecoins into payments

• Being a non-banking core member allows for direct payments with Visa, which is critical to stablecoin performance.

• It allows you to go directly back to Visa… we manage the adjustment.

  – Charles Yoo-Naut

• The integration of stablecoins into the payment process is easy for end users.

• Their end users don’t even know which stablecoins power the system.

  – Charles Yoo-Naut

• A combination of core membership, on-chain infrastructure, and compatibility is essential.

• All of these pieces together allow us to offer this product in a way that pleases our customers.

  – Charles Yoo-Naut

• The seamless integration of stablecoins improves the user experience.

• The integration of stablecoins into the payment process is easy for end users.

  – Charles Yoo-Naut

The power of stablecoins in emerging markets

• Stablecoins provide a valuable solution for individuals in emerging markets to access dollar savings.

• Most of our customers don’t see this as crypto or stablecoins, just dollars.

  – Charles Yoo-Naut

• The next year will see many cases of mainstream use of stablecoins in existing financial flows.

• This coming year will be common use cases.

  – Charles Yoo-Naut

• Stablecoins facilitate fast, cross-border transactions, improving remittance processes.

• You just send someone a stable coin and it’s fast.

  – Charles Yoo-Naut

• The practical use of stablecoins in addressing financial needs in volatile economies is important.

• Stablecoins provide a valuable solution for individuals in emerging markets to access dollar savings.

  – Charles Yoo-Naut

The impact of Tokenization on traditional processes

• Asset tokenization can simplify complex processes like home loans.

• Everything will be tokenized and everything can be done programmatically.

  – Charles Yoo-Naut

• Partnering with established companies works better than going directly to consumers.

• It is best for us to provide the best possible power in that market.

  – Charles Yoo-Naut

• Most of their revenue and growth comes from markets outside the US.

• I would say most are outside the US right now.

  – Charles Yoo-Naut

• Blockchain’s potential to simplify and automate obsolete financial processes is significant.

• Asset tokenization can simplify complex processes like home loans.

  – Charles Yoo-Naut

The changing landscape of crypto cards

• The crypto card market will see more niche products targeting specific customer needs over time.

• You’ll see more niche products pop up and target more verticals.

  – Charles Yoo-Naut

• The crypto market is developing in the same way as traditional fintech.

• Crypto is just behind the traditional financial markets.

  – Charles Yoo-Naut

• Past trends in fintech can inform future developments in the crypto market.
• The emergence of niche products is a trend in the developing crypto card market.
• The comparison between crypto and traditional fintech highlights the evolution of the market.

• The crypto card market will see more niche products targeting specific customer needs over time.

  – Charles Yoo-Naut