In this presentation, which I delivered at the Bank of England, I explore stablecoins beyond narrow banking – and what it would take to reconnect money and credit onchain.
stablecoins-beyond-narrow-banking-lombard-notes
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Giorgio Giuliani
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Stablecoins appear easy to monetise. They are not. This note looks at the few models that can scale sustainably.
Stablecoins are, in essence, the first large-scale experiment in narrow banking. Every USDC or USDT is (or supposed to be) fully backed by reserves – cash or short-term Treasuries – sitting safely off-chain. This architecture is what makes these tokens stable, but it also sterilizes capital: every dollar deposited creates no new credit, no new economic activity. In contrast, the...
After several years publishing as Fintech Ruminations, I am introducing a new name: Lombard Notes. The change reflects a broader focus, extending beyond fintech to the wider architecture of financial systems — from historical innovations to emerging digital markets. The content remains consistent in spirit, with only the name evolving. A few months ago, in my post Stablecoins 2.0, I suggested...
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