Business Fortune: Adam Swartzbaugh CEO and Founder of Almond FinTech on the use of Stablecoins for cross-border transactions

Today, cross-border transactions present a complex web of difficulties that impact both consumers and enterprises. The procedure frequently feels difficult and ineffective due to transaction delays, excessive costs, and complex regulatory restrictions. The demand for creative solutions has never been greater, and these challenges are particularly common in areas with weak financial infrastructures. The banking sector is being forced to reconsider how it handles international transactions as a result of the increasing need for simplified, affordable, and easily available solutions to these problems.

This is where Almond FinTech comes in. As a key player in addressing numerous financial obstacles, the company leverages advanced technologies such as big data analytics, blockchain architecture, artificial intelligence, and stablecoin frameworks, redefining the cross-border payment landscape. Almond’s ambition is to democratize financial services, ensuring broader access and equity within global financial systems.

In an exclusive interview with Business Fortune, Adam Swartzbaugh, CEO elaborated on the transformative potential of stablecoins and the firm’s proprietary AI optimization engine. Below is an excerpt from the interview.

Q. Beyond cost and speed, what transformative changes do stablecoins bring to cross-border transactions? Are they solving unseen challenges?

Changes

Availability: Stablecoin-based solutions provide 24/7/365 settlement and transaction completion, which helps reduce time delays and associated capital costs.

Versatility: There are many stablecoins available, and each can contribute to a comprehensive solution. By utilizing multiple blockchains and stablecoins to facilitate fiat-to-fiat transactions across borders, it’s possible to select the optimal routing based on a unique set of variables for each case. This selectivity maximizes savings and minimizes risk exposure.

Addressing Hidden Challenges

Single Points of Failure: While stablecoins are generally viewed as reliable, a single stablecoin can depeg and lose its expected value, which poses a significant risk. This creates a potential single point of failure. However, the increasing variety of stablecoins means we can quickly reroute transactions through alternative pathways during downturns and unexpected events. Ultimately, establishing a multi-rail settlement optimization infrastructure is essential to fully leverage this benefit.

Q. What major trends are shaping the stablecoin market, and how will they influence cross-border payments over the next three to five years?

Over the past year, there has been a significant increase in the demand for stablecoin payments. This surge can be attributed to the valuable educational resources available to financial institutions and corporations, leading to improved technical understanding and better risk management. Furthermore, this growth is being bolstered by a more permissive regulatory environment and clearer policy frameworks related to cryptocurrency.

The most exciting outcome of this trend will be the integration of stablecoins with the combined potential of other cryptocurrencies and blockchain networks, creating an expanding array of routing possibilities.

Q. How does Almond FinTech use AI and big data to improve stablecoin-based payment systems?

Almond’s AI-driven optimization engine takes full advantage of recent advancements in blockchain and stablecoin technology. Our engine uses a vast repository of data to model optimal routing outcomes based on cost, speed, liquidity, and volatility on a second-by-second basis.

By effectively coordinating global money movement, Almond’s technology facilitates real-time fiat-to-fiat fund transfers that often outperform market foreign exchange rates. The engine’s methodology continuously evolves to take advantage of new blockchain developments and newly minted tokens, effectively future-proofing both the technology and the company while generating significant gains for all stakeholders involved in the funds flow. Currently, Almond’s engine utilizes the combined power of 103 blockchains and cryptocurrencies.

Q. Stablecoins are seen as less risky than other types of cryptocurrency, but trust remains an issue. How do you build confidence among users?

Greater confidence in handling risk will come from a deeper understanding of its sources and the most effective tools for mitigation. Stablecoins are generally perceived as less risky due to their lower volatility; however, this view is not complete. Volatility must be assessed relative to time. For cross-border fiat-to-fiat transfers, stablecoins may be slower to move and settle compared to other cryptocurrencies, which might appear more volatile over the same period but are actually faster and more efficient. These cryptocurrencies often settle in a fraction of the time, and during that period, their behavior tends to be predictable. In other words, risk is relative to speed, and on a short enough timeline, all cryptocurrencies can exhibit stable behavior. Understanding how blockchain functions and the various factors influencing related risks is the best foundation for building trust.

Q. How are regulations across different jurisdictions shaping stablecoin adoption for cross-border payments?

Clear guidelines on the safe application of cryptocurrencies across use cases are helping users of this technology understand and manage associated risks as they would with any new technology. There is a unique learning curve for regulators in different jurisdictions. Innovation programs and sandbox initiatives are examples of how regulators can ease into the space. The lessons learned and manuals on best practices are growing in number, making the path forward easier.

Q. Are there any particular countries or jurisdictions whose regulations are leading the way when it comes to stablecoin adoption, in your view?

Singapore, Malaysia, Thailand, and Brazil, among others, are each at different stages of development and have significantly different approaches. However, a common theme among them is their thoughtful and deliberate effort to innovate in order to address clearly defined problems within the financial ecosystem.

Q. With CBDCs gaining momentum, how can stablecoins stay relevant in cross-border payments?

CBDCs (Central Bank Digital Currencies) and stablecoins are similar in their form and function, providing comparable benefits to their users in a domestic context. When used internationally, they can serve as various routing options. Having more choices, along with a system that enables real-time and informed decision-making is advantageous.

Q. How can companies active in the stablecoin space ensure compliance with different regulations across different markets? What is Almond Fintech’s experience of this?

A specialized external legal evaluation of the intended application within the local regulatory framework can help avoid potential pitfalls. When entering a new jurisdiction, Almond adopts an ask-first approach, focusing on legal analysis and direct engagement with regulatory bodies.

Q. With competition from financial institutions and tech giants, how does Almond Fintech stand out in the stablecoin market?

Our technology does not undercut or replace existing infrastructure; it optimizes and supplements what is currently available. As financial institutions and tech giants develop more, our engine becomes increasingly powerful. Each development provides more options, driving greater optimization.

About | Adam Swartzbaugh

As a co-founder and the CEO, Adam is dedicated to improving equitable access to financial services worldwide through technological innovation. He possesses advanced degrees in economics, policy, and technological innovation from MIT, Harvard, and Brown.

Prior to co-founding Almond FinTech, Mr. Swartzbaugh worked in strategy and operations management roles across corporate, governmental, and non-governmental organizations in Asia, Europe, and the Americas.

“As financial institutions and tech giants develop more, our engine becomes increasingly powerful. Each development provides more options, driving greater optimization.”

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