Building a Stablecoin Strategy with Guests Steve Wasserman and Larry Pruss
Wrestling Payments Podcast: Season 3 - Episode 27
Episode Summary
In this episode of Wrestling Payments, host Joe Casali sits down with Steve Wasserman of Vments and Larry Pruss of Strategic Resource Management to break down the rapid changes in payments, with a focus on stablecoins and tokenized deposits. Steve and Larry explain why financial institutions can’t afford to wait on strategy as new players and technology shift where deposits and customer relationships live.
Steve unpacks the difference between stablecoins and tokenized deposits, highlighting how full-reserve models and regulatory changes are driving new risks and opportunities for banks and credit unions. Larry points to growing deposit outflows, the draw of yield on digital assets, and the need for institutions to assess both the business case and operational complexity before jumping into this space.
The conversation explores practical challenges, from building acceptance networks to safeguarding against user mistakes, and looks ahead to how standards like QR codes and programmable money will shape payments. Steve and Larry urge leaders to start planning now, as digital payments and automation move from theory to reality.
Guest at a Glance
💡 Name: Steve Wasserman
💡 What he does: Founder and CEO
💡 Company: Vments
💡 Noteworthy: Steve is known for his expertise in digital currencies, stablecoins, and payments infrastructure, and for helping financial institutions develop strategies for new payment technologies.
💡 Where to find him: https://www.linkedin.com/in/svwconsulting
💡 Name: Larry Pruss
💡 What he does: Senior Vice President, Digital Assets Advisory Services
💡 Company: SRM (Strategic Resource Management)
💡 Noteworthy: Larry advises banks and credit unions on digital assets, stablecoins, and emerging payment trends, with a focus on strategy and regulatory readiness.
💡 Where to find him: https://www.linkedin.com/in/lpruss/
Key Insights
Stablecoins Are Redefining Deposit Flows and Competition
Stablecoins move money at scale with fewer intermediaries. This is shifting the competitive landscape for banks and credit unions. Instead of only watching the big banks, institutions now face deposit outflows to fintechs and digital asset platforms. Stablecoins, which operate on full-reserve models and public blockchains, offer speed and transparency that attract both businesses and consumers. As more value moves over these rails, traditional institutions risk losing deposits—sometimes as much as 3% per month—to new entrants. To stay relevant, financial institutions must pay close attention to how these products are used, where their funds are going, and what it takes to keep customers engaged. This shift demands new strategies that go beyond legacy thinking and address both current risks and future opportunities in digital payments.
A Clear Strategy Beats Quick Adoption in Payments Innovation
Jumping into new payment technologies without a plan can backfire. Many institutions feel pressure to act fast as stablecoins, instant payments, and tokenized deposits become more common. But quick adoption without strategy often leads to missteps, wasted resources, and customer confusion. The most effective approach starts with understanding user needs, mapping out how payments will be accepted, and building the right partnerships—long before launching products. Institutions should focus on building acceptance networks, integrating with wallet providers, and ensuring smooth conversion between digital assets and traditional money. This methodical planning helps manage risk, supports compliance, and keeps customers from drifting to competitors. In payments, strategic groundwork is the difference between sustainable growth and costly trial and error.
QR Codes and Programmable Money Will Shape the Next Payment Experience
QR codes and programmable money are changing how payments work for both merchants and consumers. Secure QR standards, like X9, let users pay across multiple rails—ACH, instant payments, cards, or wallets—using a single scan or tap. This makes transactions faster, safer, and easier to reconcile on the back end. The same frameworks that support QR payments also enable programmable features, like automated refunds and conditional payments, which cut out manual steps and reduce errors. As these standards become more common, they will blend traditional banking with digital wallets, giving merchants flexibility to accept the payment forms they prefer. Institutions that adopt these tools can streamline operations, offer smarter customer experiences, and stay ready for advances in agent-driven and automated commerce.
Episode Highlights
Stablecoin Growth Forces Banks to Rethink Customer Retention
Timestamp: ~ 00:00:00 – 00:06:16
Stablecoins are moving massive amounts of value worldwide, and the pace is accelerating. This growth is pulling deposits away from traditional banks and credit unions, forcing these institutions to act. The discussion underscores the urgency for banks to develop a strategy that both retains current customers and attracts new ones, especially as fintechs and non-bank entities intensify competition. Without a proactive plan, institutions risk losing deposits and relevance in a shifting payments landscape. The panel stresses that the future is no longer a distant idea—change is already here, and waiting is not an option.
"It's not just about keeping what I have, but figuring out how to get new customers—because I'm losing them like water through a sieve right now. You need that strategy in place, then determine how much time you have before you need to start doing things that not only retain your current customers but also attract the next generation."
Tokenized Deposits and Stablecoins: Understanding the Differences
Timestamp: ~ 00:16:02 – 00:21:44
The episode digs into the distinctions between stablecoins and tokenized deposits, which are often misunderstood by payments professionals. The key differences center on reserve backing, regulatory coverage, and use cases. Stablecoins use full reserves and operate on open blockchains, while tokenized deposits rely on fractional reserves and closed networks. Understanding these details matters because each model brings unique risks, regulatory requirements, and business opportunities. The conversation highlights that tokenized deposits are covered by existing banking regulations, while stablecoins fall under new rules like the Garnet Act. Institutions must grasp these nuances to make informed choices as digital money options expand.
"The first is the reserves. We already covered this—stablecoins are backed by 100% or more in reserves. Regular deposits, including tokenized deposits, are like traditional deposits: they have fractional reserves and are covered by FDIC insurance. Tokenized deposits can sit in a wallet similar to how funds sit in a bank account."
QR Codes and Secure Payments Move from Theory to Practice
Timestamp: ~ 00:29:24 – 00:37:02
QR codes have become a practical tool for secure, flexible payments. The conversation explains how standards like X9 are making QR payments more secure and versatile, supporting everything from ACH to instant payments and stablecoins. Unlike static QR codes, dynamic codes from trusted sources can be scanned only by authenticated payment apps. This not only protects users from fraud but also enables merchants to accept a range of payment methods through a single interface. The shift shows how payments technology is catching up with real-world demands, making cross-channel transactions safer and more efficient for everyone involved.
"A merchant or biller who wants to receive a payment provides the per-transaction information or the bill information and inputs it to generate a dynamic QR code. The QR code for X9 only works with a payment app that the user has already authenticated, and the apps must have the appropriate certificates to access the information."
Irrevocability in Instant and Digital Payments: New Risks and Solutions
Timestamp: ~ 00:41:07 – 00:42:58
Instant payments and stablecoins bring the challenge of irrevocable transactions—once money is sent, it cannot be pulled back like with traditional payment methods. This introduces new risks for users and institutions, especially around scams and errors. The discussion addresses emerging solutions, such as embedding refund terms in payment requests and building frameworks for dispute resolution. As instant payments become the norm, clear rules and support systems will be essential to protect both senders and receivers and foster trust in digital transactions.
"Well, if I sent the money, I can't call the FI and say I need to get the money back. You could say you were scammed and all that, and they may be able to try to help you recover it, but it can never be pulled back. Every transaction, when you initially initiate it, should include—within that request for payment data—what the refund terms are."
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