Improving Stablecoins with TapestryX NAL (Part1)

Forthcoming regulatory clarity in the US has made Stablecoins a major focus for digital asset  markets, with commercial benefits for issuers, transacting parties, holders. 

• Stablecoins currently only support fully funded position transfers, mostly to move collateral  required for DeFi/Crypto activities, and some cross-border payments.  

• DLT limitations* hamper the ability to support conventional borrowing/lending by banks and non-bank entities.  

• The International Securities Services Association (ISSA) has identified key challenges and  necessary improvements for the digital/tokenized asset market. Liquidity of Tokenized  Cash/Securities is the most pressing issue.  

• TapestryX, a new NAL can significantly improve Stablecoin utility and adoption, addressing the  top challenges for three types of participants in the market: 

1. “Top of Supply Chain” network owners (Amazon, Walmart, DoD, etc) - seeking efficiencies

2. Banking Networks - Globals, Correspondents, US Regionals - to avoid disintermediation

3. Stablecoin Issuers - seeking to enhance and grow their platforms  

* DLTs generally cannot record future obligations on-chain, which limits supply chain utility as payables/receivables are not supported natively, likewise  traditional borrowing & lending is also inhibited. 

Initial Stablecoins are better for consumers, merchants and issuers 

Stablecoin Advantages 

• Money transfers (fiat-stable-fiat) settle  in 15-50 mins 

• Consumers and merchants incur less  fees than normal payment rails – see  current cost breakdown 

• Stablecoins backing (cash and cash  equivalents) earns interest for issuers,  some of which can be passed to the  holders 

• Stablecoins can be staked via DeFi  protocols to earn additional returns for  stablecoin holders, but this incurs the  cost and risk of other public blockchain  protocols 

Current Payments Cost Breakdown 

Every time you tap a card, three players take a  cut: 

• Visa and Mastercard take 0.14% (“network  fees”) 

• Stripe, Fiserv, etc. take 0.40% (“processing  fees”) 

• Biggest part? 1.8% goes to issuing banks - called “interchange fee”. 

Last year: 

• Visa & Mastercard: charged $19 billion - Processors: $30 billion  

• Banks: $143 billion 

These are the costs that the likes of Amazon and  Walmart will avoid by issuing their own  Stablecoin

ISSA DLT in the Real World 2025 – Summary and our Insight 

The ISSA’s survey drew several key conclusions for digital assets related  to stablecoins. (see appendix) 

• Improving Liquidity has come to the forefront of the industry agenda 

• From overnight to intraday financing: 85% of respondents see intraday  liquidity as the key business need of DLT and digital assets 

So what is hampering Liquidity? 

• Regulatory constraints have limited adoption (this will change) 

• DLTs structurally cannot record future obligations on-chain. This limits  traditional financing activities required for liquidity in capital markets,  including stablecoins.  

• Note – Smart contracts can record future obligations, but they hinder netting and accounting  activities. 

Stablecoin limitations that TapestryX can overcome and augment 

Current and Prospective Issuers of Stablecoins

Current Stablecoins

• USDT (Tether USD)

• CNHt (Tether Yuan)

• MXNt (Tether Peso)

• USDC (Circle USD)

• EURC (Circle Eur)

• BUSD (USD Coin)

• TUSD (True US Coin)

• Eure (Euro Coin)

• JPYC (JPY Coin)

• PYUSD (PayPal Coin) 

Future Stablecoin Issuers

• Visa and Mastercard

• Shopify

• Stripe

• Fiserv

• Robinhood

• Goldman Sachs

• JPMorgan

• TelegramX

• Charles Schwab

• Amazon

• Walmart

Click the button below to continue to Part 2, where we dive deeper into stablecoin regulation, BIS critiques, and how TapestryX enables a next-generation B2B stablecoin network.

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