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Key Points

References

Ready Layer 1 - a token state engine?

Ready Layer 1 article

Thanks Tony McLaughlin. I need to walk through your Ready Layer 1 again with my different contexts hat on. I do see many here focus in on common financial transaction patterns. Beyond finance there are many patterns. I look for common models that support a variety of patterns. Maybe the biggest takeaway I have from the comments is just listing the key assumptions they make about transactions which are relevant to the contexts they look at.

Jim’s Review of "Ready Layer 1” from Tony McLaughlin - ReFi is the way forward

My notes 

Digital-Banking-notes1. gdoc

im-digital-platform-banking.docx file

1. Coming from the world of finance, I fully agree with Tony McLaughlin’s concepts. 
2. Current projects at RLN, RSN, Swift, DTCC, Central banks are moving forward using Ready Layer 1 concepts now
3. I also see the gaps in DeFi as currently conceived - value, technical, business. 
4. Similar to Tony, the way forward is a connected platform-based hybrid solution that will better address:  trust, risk, compliance, stability in markets, investments. 
5. DeFi missed many keys for success. 
6. Traditional Finance didn’t evolve well. 
7. Change leadership comes from building higher value solutions in finance with better trusts, cost, risks, compliance, operations resilience and automation that integrates the existing finance world easily and effectively. That’s the mission.
8. It’s a mission of open communications, standards, partnerships, iterative delivery. 
9. It’s a time to move past the limited vision and capabilities of DeFi. 
10. It’s time to build better  partnerships to create solutions delivering on key criteria for financial solutions. 
11. Large parts of the existing financial systems are working in this space today. 
12. I’ve been involved in many of those projects ( EUBOF, LFDT, INATBA, Digital Government & Identity at RI, RLN, RSN, Hamilton, Swift, Lithium, Fidelity, Sybal, DTCC, Citizens Bank, DSM, US and EU regulations on banking, digital assets etc ). 
13. It’s time for ReFi - Re-imagine Finance ( move past DeFi and CeFi ) - a new, comprehensive model to strengthen existing financial systems for all stakeholders
14. There is a “Getting Started” model from here that makes sense focused on active participation in the right communities
15. Borrowing a model from friends who are re-inventing supply chain, it’s not replacing existing systems, it’s improving them by automating trust, compliance, value, efficiency, coordination, integration, efficiencies by seeing all stakeholder groups and then providing the right incentive systems to optimize and grow performance.
16. The formula for success has already been invented. It’s time to execute it with ReFi

Poundcast Ep. 2: Regulated Liabilities and the Future of Digital Money, with Tony McLaughlin of Citi

https://www.youtube.com/watch?v=dzccH4M-DTE

Podcast by Tony McLaughlin

The Digital Money Format War

https://icg.citi.com/rcs/icgPublic/storage/public/2014480_Digital_Money_Article.pdf

Full article

https://icg.citi.com/rcs/icgPublic/storage/public/2014480_Digital_Money_Article.pdf

digital-money-2014480_Digital_Money_Article.pdf

https://drive.google.com/file/d/1VumDXHCr_SOxnSB1MoommSqAYMzstHt_/view?usp=share_link 

FUTURE OF MONEY: CBDCs, Crypto and 21st Century Cash

https://www.citifirst.com.hk/home/upload/citi_research/AZN20.pdf

FUTURE OF MONEY- CBDCs, Crypto and 21st Century Cash.pdf  

https://drive.google.com/file/d/1VvctUjCI9Az3KpTWkTDfTb7Yzxur1Gnz/view?usp=share_link

Banking, Capital Markets and Advisory_2020-2021

https://icg.citi.com/rcs/icgPublic/storage/public/Perspectives-2020-2021-Public-Sector.pdf

Banking, Capital Markets and Advisory_2020-2021.pdf

https://drive.google.com/file/d/1Vw0BIvhn1d53vI8AIpwGgqSNHWUlc9QK/view?usp=share_link

Ubyx whitepaper - Enabling stablecoin ubiquity - Tony McLaughlin

https://www.ubyx.xyz/

ubyx makes stablecoins ubiquitous through acceptance at traditional financial institutions, neo-banks and fintechs all around the world.  In doing so it strengthens the stablecoin ecosystem for users, issuers, accepting institutions and regulators.

For stablecoin users

Deposit your stablecoins into your bank account, simpler than paying in a physical cheque

For Stablecoin Issuers

Access a global network of stablecoin acceptance through regulated financial institutions

For Financial Institutions

Offer a new payment option to your clients and be part of the public blockchain revolution

What is Ubyx

1. Ubyx is a clearing system that enables any financial institution or regulated fintech to offer a new service to their existing customers – the ability to deposit stablecoins right into their existing account, 24*7, almost instantly.
2. This capability will add a new redemption channel for stablecoins alongside cryptocurrency exchanges and direct relationships with issuers. These channels will continue to be important, but they will be improved by the presence of Ubyx.
3. Ubyx will provide financial institutions with hosted wallets that enable their clients to receive stablecoin payments. Perhaps to begin with these will be niche use-cases like app developers and social media influencers, but this will soon spread to remittances, cross border trade and eventually to payments of all kinds.
4. There will be many regulated stablecoin issuers and the user needs a direct channel to deposit a variety of instruments into their existing account with a bank or fintech.
5. The bank then needs a way to claim payment from multiple issuers and have a high degree of assurance that they will be paid before crediting the user’s account. Ubyx will give financial institutions a single interface to submit stablecoins from all participating Ubyx issuers for redemption at par value on demand.
6. Ubyx will route the stablecoins back to the issuers for payment, and then route the payments back to the financial institutions.
7. By enabling deposit of stablecoins direct to existing accounts, Ubyx unlocks remarkable benefits across the entire stablecoin ecosystem.

Ubyx whitepaper

This whitepaper is an executable plan that takes your inputs and outputs stablecoin ubiquity.

● CORE THESIS AND UBYX MISSION: Stablecoins will become ubiquitous,
general-purpose methods of payment.

● PRE-CONDITIONS TO UBIQUITY: regulation, universal acceptance, cash
equivalence (accounting standards), singleness of money, trust and confidence across
issuers.

● KEY ENABLER PROVIDED BY UBYX: the ability to redeem stablecoins from many
issuers at par value with your own bank or fintech.

● HOW IS THIS ACHIEVED: Ubyx stablecoin clearing and settlement mechanism turns
on par value stablecoin acceptance through banks and fintechs.

● UBYX CLEARING SYSTEM: multi-issuer, multi-currency, multi-receiving institution.
Rulebook for participants. Mechanisms to ensure redemption at par. Ubyx is NOT a
cryptocurrency exchange, it is a clearing system. Big difference.

● UBYX PROPOSITION FOR ISSUERS: breaks the model of paying listing fees per
exchange - participating issuers tap into the entire redemption network. Makes
stablecoins cash equivalents, enabling mass breakout into non-crypto use-cases.

● UBYX UTILITY TOKEN: disinflationary token that provides users with 50% discounted
ubyx redemption fees. Provides incentives for investors and ecosystem participants.
10bn tokens minted at par value of $1. Strategically allocated to drive ecosystem
growth.

● EQUITY STORY: Strong recurring revenue growth through scaling issuer and
receiving institutions sides of the ecosystem. Ubyx return is a conviction bet on
stablecoin ubiquity. $50bn+ IPO in 5 years based on 25x revenue valuation.

● UBYX ASSOCIATION: common advocacy body for the industry funded by Ubyx token
allocation.

● UBYX DAO: independent lending of last resort facility supporting ecosystem stability
through lending to issuers in times of stress. Supported by substantial allocation of
Ubyx utility tokens. The distributed, autonomous IMF of stablecoins.

● UBYX TRUST MARK: globally recognised sign of trustworthy stablecoin redemption at
par value. Marketing spend is supported by allocation of Ubyx utility tokens.

● UBYX MINTING GATEWAY: The reverse flow of the Ubyx clearing system for
redemptions is the Ubyx minting gateway - any Ubyx receiving institution can offer
customers any stablecoin on the network, paid for directly from the customer’s existing
bank or fintech account.

● HELPFUL ANALOGIES: Stablecoins as digital form of cheques that require a
clearing system to deliver singleness of money. Alternatively: Ubyx is the
Visa/Mastercard of stablecoins. Trust mark. Rulebook. Settlement between many
issuers and many acceptance points.

Stablecoins in the US

Newly Proposed Stablecoin Legislation - 2025

On February 4, 2025, David Sacks, informally referred to as the “Crypto Czar,” held a press conference to outline the administration’s policy direction for blockchain technology and digital assets. Sacks emphasized the President’s commitment to fostering the responsible growth of digital assets and highlighted the formation of an executive branch working group dedicated to this objective. The administration’s stated goal is to encourage innovation while ensuring regulatory clarity and oversight.

SEC’s “Crypto Task Force” and Emerging Regulatory Framework
As noted in our prior Alert, the SEC has established a dedicated "Crypto Task Force" led by Commissioner Hester Peirce. The Task Force is charged with developing a federal regulatory framework for digital assets, including stablecoins, to provide greater clarity for market participants. Sacks indicated that the administration seeks to move away from the previous regulatory environment’s adversarial stance toward digital asset companies.

The administration’s approach aims to:

establish clear regulatory guidelines for digital asset issuers and financial institutions;
ensure value creation remains within the U.S. market to facilitate oversight and investor protection;
encourage innovation while mitigating risks associated with bad actors in the market.
Sacks further noted that legislative efforts regarding market structure and stablecoin regulation are underway, with bipartisan collaboration anticipated. He underscored the strategic importance of digital asset regulation in reinforcing the dominance of the U.S. dollar and bolstering economic growth. Additionally, the administration has commissioned a feasibility assessment for a potential bitcoin reserve, though this initiative remains in the preliminary evaluation phase.

Legislative Support and Key Stakeholders
Prominent lawmakers participating in the press conference reinforced the administration’s regulatory vision.

Senate Banking Committee Chairman Tim Scott expressed confidence in the coordinated efforts among the White House, Congress, and regulatory agencies, highlighting a 100-day timeframe for tangible progress.
House Financial Services Committee Chairman French Hill underscored the importance of stablecoin legislation and a clear regulatory framework in the 119th Congress.
Senate Agriculture Committee Chairman John Boozman, a long-time advocate for digital asset regulation, acknowledged the sector’s resurgence and stressed the necessity of protecting consumers while ensuring effective collaboration between the CFTC and the SEC.
House Agriculture Committee Chairman Glenn Thompson framed the regulatory initiative within the broader context of financial innovation, likening the digital asset sector’s growth potential to the early internet era. He outlined three core objectives: consumer protection, regulatory robustness, and fostering technological advancement.
A bicameral working group comprising members of the House and Senate Financial Services and Agriculture Committees will spearhead efforts to refine the evolving regulatory framework.

Conclusion
While details remain limited, the press conference underscored a unified effort to establish a structured, innovation-friendly regulatory environment. The administration’s focus on clarity, consumer protection, and financial leadership signals a significant shift in digital asset governance. We will continue to monitor these developments and provide timely updates as the administration's digital asset policies take shape.

Newly Proposed Stablecoin Legislation
Yesterday’s developments also included newly proposed stablecoin legislation from Chairman Scott who was joined by fellow Senate Banking Committee members, Senators Bill Hagerty and Cynthia Lummis, and by Senator Kirsten Gillibrand. They have proposed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which is legislation that would be designed to establish a long-awaited regulatory framework for payment stablecoins.

The legislation defines a payment stablecoin as a digital asset pegged to a fixed monetary value and sets clear licensing procedures for institutions issuing stablecoins. It imposes reserve requirements and tailored regulatory standards, applying the Federal Reserve’s framework to issuers with over $10 billion in stablecoins and the Office of the Comptroller of the Currency’s framework for nonbank issuers. State regulation is allowed for issuers under $10 billion, with a waiver process for those exceeding this threshold to remain state regulated. It also establishes supervisory, examination, and enforcement regimes.

Reshuffle at the SEC
Although there has been no formal announcement by the SEC, it was widely reported in the news yesterday that more than 50 attorneys and staff in the cryptocurrency arm of the enforcement division are being reassigned to other areas of the organization. These changes signal (as expected) that there will be much less enforcement attention on the crypto industry under the acting SEC Chair, Mark Uyeda, and his expected successor, Mark Atkins, whose appointment is pending Senate confirmation.

S.394 - A bill to provide for the regulation of payment stablecoins - 2025

https://www.govtrack.us/congress/bills/119/s394 

H.R.4766 - Clarity for Payment Stablecoins Act of 2023 - not passed

Stablecoins in the EU 

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