# How Stablecoins Are Taking Over The Dollar, Business, & The Federal Reserve w/ Santiago Santos

Source: https://www.youtube.com/watch?v=6S5ZyQ6sIII
Recap page: https://rapidrecap.app/video/6S5ZyQ6sIII
Generated: 2025-10-28T15:03:27.808+00:00

---
## Quick Overview

Santi Roel Santos, the founder and CEO of Inversion Capital, argues that stablecoins are poised to take over the dollar's role in certain financial transactions, particularly for businesses and consumers in emerging markets, by offering programmability, lower friction, and direct access to central bank money, which traditional banking intermediaries currently complicate.

**Key Points:**
- Stablecoins are increasingly important for digital asset allocations, moving beyond the daily speculation common among crypto investors.
- The Federal Reserve's recent Payment Innovation Conference signaled a positive shift in policy tone towards crypto, especially concerning stablecoins and tokenization.
- Santiago Roel Santos's firm, Inversion Capital, focuses on building digital asset infrastructure, particularly in emerging markets like Latin America.
- The ability for stablecoins to bypass traditional banking intermediaries allows for cheaper, faster, and borderless transactions.
- If the US government shutdown ends, the potential for a regulatory framework like the Clarity Act could further legitimize tokenized assets and stablecoins.
- The primary value proposition of stablecoins is enabling end-users to earn yield and perform atomic settlement while maintaining familiarity with a dollar-denominated account.
- Institutions like JP Morgan are actively exploring blockchain integration to offer better services, indicating growing institutional acceptance of the technology.

![Screenshot at 00:08: Santi Roel Santos explains that stablecoin allocation decisions must be based on multi-year time frames, not daily speculation.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-00-08.png)

**Context:** This interview segment features John Gillen, host of the Milk Road Macro podcast, speaking with Santi Roel Santos, a prominent digital asset investor and the founder/CEO of Inversion Capital. The discussion centers on the growing significance of stablecoins and tokenization, particularly in the context of recent Federal Reserve commentary and ongoing regulatory discussions like the Clarity Act. Santos explains how this technology, especially when integrated with real-world assets, offers tangible benefits over traditional banking systems, particularly in emerging markets.

## Detailed Analysis

Santi Roel Santos asserts that stablecoins are becoming increasingly crucial for digital asset allocations, moving beyond mere daily speculation. He notes a positive shift in the Federal Reserve's stance following their recent Payment Innovation Conference, where tokenization and stablecoins were discussed more favorably. Santos, whose firm Inversion Capital focuses on digital asset infrastructure in emerging markets, highlights that these technologies offer superior efficiency, speed, and borderlessness compared to traditional banking rails. He points out that the Clarity Act, if passed, would be a significant legislative step legitimizing tokenized assets. The core benefit of stablecoins, according to Santos, is offering users yield-generating products while maintaining a familiar dollar-denominated account, bypassing traditional intermediaries. He contrasts this with the older, riskier approach of relying solely on decentralized finance (DeFi) experiments, citing the failure of certain tokens like Dogecoin. Santos emphasizes that major financial players, including JP Morgan, are actively exploring this technology, which is crucial because governments generally favor the surveillance capabilities inherent in digital, programmable money, even though this might be a threat to smaller banks. He concludes that the ultimate beneficiary of this technological shift will be the consumer through increased efficiency and better service.

### Stablecoin Adoption & Macro Context

- Stablecoins are moving beyond daily crypto speculation; the Fed's Payment Innovation Conference showed a more positive tone towards digital assets and tokenization.

### Inversion Capital's Focus

- The firm focuses on building digital asset infrastructure, particularly in emerging markets like Latin America, where there is high demand for dollar-based yields.

### Regulatory Landscape

- The Clarity Act is a critical potential development; if passed, it would provide regulatory clarity and security for tokenized real-world assets (RWAs).

### Competitive Advantage of Programmable Money

- Stablecoins allow for direct interaction with central bank money, bypassing traditional intermediaries, leading to faster, cheaper, and borderless transactions.

### User Behavior vs. Technology

- While technology like AI improves efficiency, consumer behavior often lags; users still prefer familiar dollar-denominated accounts, which stablecoins provide with yield-generating capabilities.

### Institutional Adoption

- Major players like JP Morgan are exploring blockchain integration, signaling that the future involves tokenized assets, even if the immediate regulatory environment is uncertain.

![Screenshot at 00:08: Santi Roel Santos introduces the topic by noting that stablecoin allocation should follow a multi-year time frame, not daily crypto investor speculation.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-00-08.png)
![Screenshot at 00:33: John Gillen mentions the US national debt approaching $31.8 trillion and its implications for the economy.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-00-33.png)
![Screenshot at 01:48: John Gillen welcomes Santi Roel Santos, founder and CEO of Inversion Capital, to the podcast.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-01-48.png)
![Screenshot at 02:04: Santi Roel Santos describes the Federal Reserve's recent Payment Innovation Conference as signaling a huge shift in policy tone towards crypto.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-02-04.png)
![Screenshot at 03:36: John Gillen asks for Santi's thoughts on the fight between banks and stablecoin issuers regarding yield-generating products.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-03-36.png)
![Screenshot at 08:08: Santi Roel Santos gestures while explaining the tension between traditional finance and the digital world of stablecoins.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-08-08.png)
![Screenshot at 09:51: Santiago Roel Santos discusses the common question: Will central banks resist stablecoin adoption?](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-09-51.png)
![Screenshot at 13:14: Santi Roel Santos is seen taking a sip from a branded mug during the discussion.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-13-14.png)
![Screenshot at 15:51: Santi Roel Santos shows his phone to illustrate how simple transactions should be, contrasting with current banking friction.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-15-51.png)
![Screenshot at 21:01: John Gillen asks about the onboarding process for new users into the Inversion Capital ecosystem, which he frames as an AI-powered platform for digital assets.](https://ss.rapidrecap.app/screens/6S5ZyQ6sIII/00-21-01.png)