Inside Qiro & Stablecoins Talks with Akshay | Stable Talks Ep-3

Summary

This conversation dives into the burgeoning field of blockchain-based lending, especially within the MSME (Micro, Small, and Medium Enterprises) market, highlighting the $8.1 trillion global credit requirement. The speaker discusses key use cases for blockchain solutions, including bridging credit gaps for corporate credit cards, cross-border payments, and traditional fintech companies. With a focus on onchain private credit, the discussion touches on the vast opportunities in fintech and stablecoin markets. Insights on emerging trends, favorite blockchains, and predictions for the future of stablecoin issuance by major companies, like Stripe and Tesla, are also explored.

Takeaways

• 😀 The global MSME credit market is valued at $8.1 trillion, with emerging markets contributing significantly to the demand.
• 😀 The Asia-Pacific region alone has a $2.5 trillion requirement for MSME credit, accounting for almost 50% of the total demand in emerging markets.
• 😀 Currently, only about 5% of the global MSME credit gap is addressed, leaving a massive opportunity for solutions that can cater to the remaining 95%.
• 😀 The potential market size for MSME credit is estimated to be over $5-6 trillion, even after considering the trade finance segment.
• 😀 One of the key use cases in the fintech space is filling the credit gaps for corporate credit card fintech companies that require capital for backend settlement with networks like Visa.
• 😀 Cross-border payment companies also face short-term credit gaps (1 to 5 days) and need capital to handle settlements.
• 😀 Traditional fintech companies, such as those involved in invoice financing, inventory financing, and revenue-based financing, require fiat capital for their operations.
• 😀 On-chain private credit, especially in the RWF (Real World Finance) industry, presents significant opportunities for building decentralized lending solutions.
• 😀 If crypto vanished tomorrow, the guest would likely return to a traditional job, similar to how people in the early internet era had to adapt to changing circumstances.
• 😀 The preferred stablecoin for the guest’s business is USDC, as it is a regulated stablecoin that ensures trust and stability in the financial system.
• 😀 Companies like Stripe, Reliance, and potentially Amazon or Walmart may be the next to issue stablecoins, with major implications for the broader market.
• 😀 The guest predicts that in the future, Fortune 500 companies, such as Tesla, could pay dividends in USDC, highlighting the growing role of stablecoins in traditional finance.
• 😀 The guest admires fintech companies like Rain Card, which provide corporate credit cards and are solving real problems in the market with their innovative solutions.
• 😀 Ethereum remains the favorite blockchain for building stablecoin solutions due to its liquidity and widespread adoption within the crypto ecosystem.

Q & A

What is the estimated global MSME credit requirement, and how much of it is addressed currently?

The global MSME credit requirement is around $8.1 trillion, with the emerging market's share being over $5 trillion. However, only about 5% of this $8 trillion requirement is addressed, leaving 95% of the market untapped.

What is the primary use case being launched by the company discussed in the transcript?

The company is launching a use case focused on filling the gap in corporate credit card fintech companies, especially in terms of capital needed for backend settlements with networks like Visa.

What is the second major use case mentioned in the conversation?

The second use case involves cross-border payment companies that experience short-term credit gaps (1-5 days) and need capital to settle transactions.

What is the third use case mentioned in the podcast related to traditional fintech?

The third use case addresses traditional fintech companies involved in business loans, invoice financing, inventory financing, and revenue-based financing, which require fiat capital.

What is the biggest opportunity for entrepreneurs as discussed in the transcript?

The biggest opportunity is in the on-chain private credit space, particularly around Real-World Assets (RWF) industry, which is gaining traction.

What advice is given regarding building in the on-chain lending space?

The key advice is identifying high-quality assets, as these are crucial to successfully building in the on-chain private credit and lending space.

What would the speaker do if crypto vanished tomorrow?

If crypto vanished tomorrow, the speaker would likely return to a traditional job, seeing the crypto era as similar to the internet boom 20 years ago, where opportunities were abundant but eventually faded.

Which stablecoin does the speaker prefer, and why?

The speaker prefers USDC because it is a regulated stablecoin, which is especially important for the business they are involved in.

Which Web2 company does the speaker think will issue their stablecoin next?

The speaker believes that Stripe will be the next Web2 company to issue their own stablecoin.

What are the two companies the speaker predicts might issue stablecoins outside of the fintech space?

The speaker predicts that Reliance from India, and potentially Amazon or Walmart outside of India, might issue their stablecoins in the future.