i'd argue that a big bank can probably run on its own rails for a pretty low cost. this would be systematic strain on future profitability of b2b.
for small/medium banks - a platform they can buy (rather than build) makes sense even if it charges a premium, but only if said platform is reputable and would not put some burden of regulatory compliance on them.
and these bank managers might read that decision as a signal from regular saying "you can offer your customers low international transfers, but try to avoid this specific platform".
estimating what the impact on b2b at this point - is pure guess IMO.
you'd know in 2-3 quarters when you see the trends in b2b volumes.
i think the market is not just pricing delay - it is pricing the real possibility that by the time their reputation clears - the b2b will have moved to to some other stablecoin rails platform.
Do we know at what cost big banks facilitate cross border payments? And if the price is competitive with Wise, how do they do it so cheaply? Not saying you are wrong necessarily. Just want to better understand this if true.
regarding valuation of the b2b:
i'd argue that a big bank can probably run on its own rails for a pretty low cost. this would be systematic strain on future profitability of b2b.
for small/medium banks - a platform they can buy (rather than build) makes sense even if it charges a premium, but only if said platform is reputable and would not put some burden of regulatory compliance on them.
and these bank managers might read that decision as a signal from regular saying "you can offer your customers low international transfers, but try to avoid this specific platform".
estimating what the impact on b2b at this point - is pure guess IMO.
you'd know in 2-3 quarters when you see the trends in b2b volumes.
i think the market is not just pricing delay - it is pricing the real possibility that by the time their reputation clears - the b2b will have moved to to some other stablecoin rails platform.
Do we know at what cost big banks facilitate cross border payments? And if the price is competitive with Wise, how do they do it so cheaply? Not saying you are wrong necessarily. Just want to better understand this if true.
Thorough and well said from top to bottom
Thank you 🙏🏻. Your comment made me smile!