JD Durkin: Eric Queathem joins us now, the CEO of Velocity. Nice to see you. Thanks for taking the time, as always.
Eric Queathem: Great to see you as well. Thanks for having me.
JD Durkin: I know you’re building the infrastructure that lets businesses use stablecoins alongside traditional banking, and we’ll talk about the nooks and crannies of that in a second.
First, you just announced a $10 million Series A extension, Visa, Circle joining. How did these relationships come together, and what should this tell us about where stablecoins are going from here?
Eric Queathem: Yeah, I think from day one, we’ve always said that stablecoins are going to work with the existing infrastructure that exists. Certainly, incredibly validating to have someone like Visa join the cap table as an investor.
From my Worldpay days, got to know the Visa team very well. And, you know, I’ve always obviously admired where they are in terms of their crypto and stablecoin journey. I think they’re leading in a lot of ways.
And so to partner with them as an investor is really exciting. To bring other folks like Circle and Coinbase and, you know, several other strategics who I think have the opportunity to drive some real acceleration in what we’re doing is pretty exciting.
JD Durkin: I know you’ve said eventually, at some point, probably in the near future, stablecoins will actually be invisible to many of the people who really use them. What does that actually mean for someone making a payment in that new-look reality?
Eric Queathem: Yeah, I think it’s already happening. Today, there’s people swiping credit cards around the world, and the way the money is actually moving between the financial institution and the network, being Visa, and sometimes directly to the acquirer and the merchant, is actually happening on stablecoins.
The consumer doesn’t see that. They don’t feel it. It looks the same to them. But what we’re creating on the back end is a better experience for the counterparties that exist within that value chain.
JD Durkin: Should we think about stablecoins as more of a threat to traditional banks? Do you see it more being an opportunity?
Eric Queathem: I think it’s probably a little bit of both. I think there’s going to be banks who innovate and who lean into it and become dual-asset, and they have the ability to operate in fiat and they have the ability to operate on-chain in stables, and they’re going to be able to take market share and win.
And there’s going to be a lot of banks who get left behind. And I think that’s a good thing, right? Innovation creates better products in the market, and I think we’re starting to see what stablecoins can enable.
JD Durkin: Let’s drill down a little bit more on the Visa partnership. They’re also an investor. What does that partnership look like in practice?
Eric Queathem: Yeah. Obviously, you know, Visa is an incredibly important player within the ecosystem. They’re connected to tens of thousands of issuing banks around the world, I think 175 million merchants, thousands of acquirers, and they’re building a lot of great capabilities.
But in order for that ecosystem to thrive and to have that network effect, all of those network participants need to come on-chain. And so we’re working closely with them to do that, to enable that, to bring our capabilities to those network partners so they can take advantage of what Visa’s building.
JD Durkin: And obviously, you’re doing a lot of focus right now on the United States. Why is that such a big bet for where Velocity is today? And where else are you seeing big opportunities in this moment?
Eric Queathem: Yeah, I think, you know, stablecoins will really globalize commerce in a way that hasn’t existed before. I think the U.S. is such an important market because lots of global multinational businesses operate out of the U.S., and so serving them here on their home turf and, you know, where their headquarters are, is important.
But ultimately, you know, we’re operational across Europe, the U.K., the U.S., Australia and other markets around the world. And so this really is a global business.
JD Durkin: I’m about out of time, but what is the coolest part about all of this to you? The thing that you want most people to take away, really learning about these conversations for the first time?
Eric Queathem: Yeah, I think stablecoins and crypto are not scary, right? They have the opportunity to create better outcomes for businesses and to use that capital to reinvest, to create better products.
And so what we’re trying to do is create a better back-end system, make commerce flow smoother. And I think, you know, what you’re going to see is lots of change happening, and it’s a good thing for consumers or, you know, other businesses who are interacting with these systems.
JD Durkin: Eric Queathem, CEO of Velocity. Come back anytime, man. It’s good to see you.
Eric Queathem: Thanks, JD.
