🏦 The Money Plumbing

How money actually moves around the world — from telegraphs to stablecoins — and who's competing to replace what

Part 1

How Money Moves (And Why It's Still Broken)

Moving money between countries today uses infrastructure designed in the 1970s. Here's how we got here — and what's trying to replace it.

📡
1851
Telegraph Wires
Western Union sends the first "wire transfer" — literally a telegraph message telling a distant office to pay someone. The word "wire" in wire transfer comes from actual telegraph wires.
TECH: Copper wire + Morse code
🏛️
1970
Fedwire
The Federal Reserve builds an electronic system to move money between US banks. Real-time, but only for domestic, only during business hours, only between Fed member banks. Still the backbone of large-value US payments today.
TECH: Dedicated leased lines → later TCP/IP
🌐
1973
SWIFT Founded
239 banks in 15 countries create SWIFT to replace Telex messages. SWIFT doesn't move money — it sends encrypted messages between banks telling them to move money. Like a fax machine for payment instructions. Banks still settle through their own accounts.
TECH: Proprietary network (SWIFTNet) → FIN messages
🏦
1974
CHIPS
Clearing House Interbank Payments System. A private-sector alternative to Fedwire, run by the big banks. Nets payments together so banks only move the difference — way more efficient. Handles 95% of international USD transfers.
TECH: Batch netting + end-of-day settlement via Fedwire
📝
1974
ACH
Automated Clearing House. For small, routine payments — direct deposit, bill pay, Venmo. Batch processed, not real-time. Your paycheck doesn't arrive "instantly" — it's batched with millions of others and processed overnight.
TECH: Batch files processed by Federal Reserve Banks
💸
2011
Wise (TransferWise)
First major disruptor. Clever trick: doesn't actually send money across borders. Keeps pools of cash in each country. When you "send" $100 to the UK, Wise deducts from your US pool and credits from their UK pool. Money never crosses a border. Way cheaper.
TECH: Local bank rails + clever internal netting
2012
Ripple (XRP)
First real attempt to use blockchain for bank-to-bank payments. Uses XRP as a bridge currency — Bank A converts USD → XRP → PHP in seconds. Problem: banks don't want to hold volatile XRP. Now launching RLUSD (their own stablecoin) to fix this.
TECH: XRP Ledger (custom blockchain)
🪙
2018
USDC Launches
Circle (with Coinbase) creates USDC — a dollar on the blockchain. Unlike XRP, USDC is always worth $1 because it's backed 1:1 by real dollars in Treasuries. No volatility. Banks can hold it without risk. Unlocks what Ripple couldn't.
TECH: ERC-20 token on Ethereum → now multichain
🇺🇸
2023
FedNow
The Fed's answer to "why is ACH so slow?" Real-time payments, 24/7, between US banks. But only domestic. Only up to $500K. And banks are adopting it slowly — only ~1,000 of 10,000+ banks are live. Doesn't solve cross-border.
TECH: ISO 20022 messaging + Fed settlement
🌐
2025 ← We are here
Circle Payments Network
SWIFT + stablecoins. Financial institutions connect, convert local fiat → USDC → send on blockchain → convert to destination fiat. Seconds, not days. 55 FIs enrolled. $5.7B annualized volume and growing fast.
TECH: USDC on public blockchains + compliance layer
📬 → 📧

The mail analogy: SWIFT is like the postal system — it delivers a letter (payment instruction) but someone else has to actually hand over the package (money). Fedwire is a bonded courier that only works 9-5 on weekdays. ACH is bulk mail — cheap but slow. Wise figured out you don't need to send mail at all if you have offices in both cities. Stablecoins are email — the message IS the money, it arrives instantly, and it works 24/7.

• • •
Part 2

Who's Competing — The Stablecoin Landscape

Circle isn't alone. Here's everyone fighting over the future of money movement.

🥇 Tether (USDT)

$184B market cap · ~60% share · The gorilla

Biggest stablecoin by far. Dominates in emerging markets — the de facto "digital dollar" in Asia, Latin America, Africa. Less regulated than USDC. Recently hired Big Four auditor (eroding Circle's transparency edge).

Threat to Circle: If Tether gets audited, Circle loses its main differentiator

🥈 Circle (USDC)

$78.6B market cap · ~25% share · The institutional pick

Fully audited by Deloitte. MiCA compliant in EU. OCC national trust bank charter. The "safe" stablecoin for regulated institutions. Faster onchain velocity than USDT (per JPMorgan). But much smaller market cap.

Edge: Regulatory credibility, institutional trust, Visa/Stripe partnerships

💰 PayPal (PYUSD)

~$1B market cap · Tiny but connected

PayPal has 400+ million users who can buy/hold/send PYUSD in-app without knowing anything about crypto. Distribution advantage is massive. But adoption has been slow — most PayPal users don't care about stablecoins yet.

Threat to Circle: If PayPal pushes PYUSD for merchant settlement, it bypasses USDC entirely

⚡ Ripple (RLUSD)

New entrant · XRP ecosystem · $11B in market cap for XRP

After years of pushing XRP (volatile), Ripple launched RLUSD — a proper stablecoin. Integrating with Fedwire via their Hidden Road acquisition. Targeting the same bank-to-bank corridor as CPN. Direct competitor to Circle's payments network.

Threat to Circle: Ripple has existing bank relationships that Circle doesn't

🔵 Stripe / Bridge (USDB)

$1.1B acquisition · Stripe's stablecoin engine

Stripe acquired Bridge to build stablecoin payments. Bridge issues USDB — their own stablecoin. Stripe merchant accounts can hold USDC or USDB. If USDB scales, Stripe could route payments away from USDC entirely.

Threat to Circle: Stripe is partner AND competitor. Bridge/USDB could displace USDC on Stripe's rails.

🏦 Bank Consortium (EU)

Launching H2 2026 · SocGen, Deutsche Bank, others

Major European banks forming a consortium to launch their own stablecoin. Motivated by MiCA regulation and desire to keep stablecoin profits in-house. Network effects work against them — USDT/USDC already dominant and hard to displace.

Less threatening: Late, fragmented, fighting established network effects
The landscape in one sentence

Tether owns emerging markets. Circle owns institutions. Everyone else is trying to take share from both. The question is whether stablecoins are a winner-take-most market (like Visa/Mastercard) or a fragmented one (like banks). Circle is betting on the former — but they're #2, not #1.

• • •
Part 3

The Last Mile — Can You Actually Use USDC Anywhere?

Here's the real question: if I send USDC to someone in Argentina, can they actually turn it into pesos and buy groceries? The answer depends on where you are.

🇺🇸

United States

Easy — fully integrated

Onramps: Coinbase, Circle Mint, any major exchange. Offramps: Coinbase → bank deposit in minutes. Stripe, Visa settlement. Circle Mint for institutions. Zero friction.

🇪🇺

Europe (EU)

Good — MiCA helps

Onramps: Coinbase, Bitstamp, Kraken. Offramps: SEPA bank transfers from exchanges. Circle is MiCA-compliant — only major stablecoin that is. EURC growing fast (€310M). Regulated exchanges offer direct USDC→EUR.

🇧🇷

Brazil

Moderate — growing fast

Onramps: Mercado Bitcoin, Bitso, Binance Brazil. Offramps: Exchange → PIX (instant local payments). Brazil's central bank built PIX — so USDC→PIX is viable through local exchanges. Over 50% of crypto exchange purchases are stablecoins.

🇦🇷

Argentina

Hard to get dollars — that's the POINT

The irony: Argentina has capital controls that make it hard to buy real dollars. USDC IS the solution. 60% of Argentine crypto transactions are stablecoins. People use USDC as a savings account because the peso loses value constantly. Onramps: Bitso, Lemon Cash, Belo, Airtm, P2P exchanges. Offramps: Sell USDC for pesos on local exchanges at the "blue dollar" rate (closer to real market rate than official rate). Not seamless, but functional.

🇳🇬

Nigeria

Huge demand, limited infrastructure

Nigeria is Africa's largest crypto market. Massive remittance corridor — $20B+/year flows in. Local exchanges (Quidax, Luno, Yellow Card) support USDC↔NGN. P2P markets are active. The central bank has been back-and-forth on crypto regulation, creating uncertainty.

🇮🇳

India

Hostile regulation, huge opportunity

India levies a 30% tax on crypto gains + 1% TDS on all transactions. This crushed local exchange volume. Largest remittance recipient in the world ($125B+/year). If regulation softens, stablecoins could transform India's remittance market. For now, mostly P2P and offshore exchanges.

🇵🇭

Philippines

Surprisingly good

Major remittance corridor (US → Philippines). Coins.ph is a leading exchange with USDC support and direct cash-out to local banks and e-wallets (GCash, Maya). Stablecoins are becoming a real alternative to Western Union for Filipino diaspora sending money home.

🇨🇳

China

Banned

Crypto trading is banned. China is building its own CBDC (digital yuan). Tether is still widely used via P2P and offshore channels. USDC has almost no presence. Not a market Circle can easily access.

Can Wise exchange USDC?

Not yet — but they're hiring for it. Wise recently posted a job for a "digital asset product lead" focused on stablecoins. They haven't launched USDC support, but the writing is on the wall. Today, Wise uses its own internal netting system (pools of local currency in each country). Adding stablecoins would let Wise cover corridors where they DON'T have local banking partners — exactly the markets where USDC is strongest.

🏧

The ATM analogy: Sending USDC is like having a global ATM card — your money is digital and moves instantly. But the question is: is there an ATM where you're going? In the US and EU, there's an ATM on every corner (Coinbase, exchanges, banks). In Argentina, there's a network of informal ATMs (P2P exchanges, local apps). In India, the government is putting locks on the ATMs. In China, they've demolished them all. The technology works. The last mile depends on local rails and regulation.

This is CPN's real value proposition

CPN doesn't require the end user to touch crypto. The OFI (originating bank) does the conversion in the US, and the BFI (beneficiary bank) does the conversion in Brazil or wherever. The consumer on both ends only sees fiat — dollars in, reais out. That's the whole point: stablecoins as invisible plumbing, not consumer products. The last-mile problem is solved by having licensed FIs in each country do the conversion.