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Empire

The End Game For Stablecoins With Edward Woodford

Apr 22, 2025
Edward Woodford, Co-founder and CEO of ZeroHash, unpacks the economics and future landscape of stablecoins. He analyzes Circle's S-1 filing, revealing key insights into who profits most from the stablecoin model. The conversation dives into regulatory challenges that companies like Circle face, while discussing innovative strategies for maintaining competitiveness. Woodford also highlights the need for interoperability in the evolving financial ecosystem and examines how stablecoins can revolutionize digital payments.
01:05:32

Episode guests

Edward Woodford

Podcast summary created with Snipd AI

Quick takeaways

  • The economics of stablecoins involve layered business models influencing competition, as companies like Circle and ZeroHash strategize their roles within this system.
  • Circle's recent financial results highlight the tension between rising revenues and declining profitability, raising concerns about the sustainability of its USDC-centric model.

Deep dives

The Business Model of Stablecoins

Stablecoins operate under various business models, which can be categorized into layers that include issuance, infrastructure, and applications. Companies like Circle are known for their issuance of stablecoins, yet they face significant competition from blockchain infrastructure providers like ZeroHash. The business model's effectiveness is determined by how companies configure their roles within this layered system, with successful entities diversifying across multiple layers. Notably, firms like Coinbase have expanded their engagement in numerous aspects, thus positioning themselves advantageously in this complex landscape.

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