Stablecoin Projects Receive Funding and Bank Charter

A debate broke out on X last week over whether Visa will continue to dominate payments in the age of agentic commerce or if that future belongs to blockchain natives using stablecoins. The discussion began when the cofounder of Modern Treasury stated that agents can easily memorize a 16-digit card number so there is no need for stablecoins. Y Combinator cofounder Paul Graham responded sharply.

“Because then you have to add card fees. ” he stated. Visa’s fees are around 12 basis points. Merchants pay 3% to 4% for a credit card transaction, fees that are pocketed by banks, not Visa. Transaction fees can be lowered to well below 1 basis point using programmable money and blockchain rails.

Visa’s crypto guy Cuy Sheffield joined the X debate. He stated that Visa could integrate stablecoins for instant on-chain merchant settlement. Even as the online debate unfolded, stablecoin-focused ventures continued to secure major backing and regulatory approval.

Augustus, a stablecoin-first bank led by a 25-year-old Thiel fellow, has raised $40 million. The firm just received a rare national bank charter from the OCC. MoonPay acquired Dflow, a platform that facilitates trading on the Solana blockchain, in an all-stock deal valued at $100 million.

The transaction adds deeper integration with high-speed blockchain rails at a moment when programmable money is drawing fresh capital. Kraken signed a deal with MoneyGram that will allow its overseas customers to cash out crypto at physical locations in more than 100 countries. The agreement expands real-world off-ramps for crypto users far beyond digital exchanges.

2 billion for a fifth fund that will be invested 100% in crypto founders. The fund size signals continued institutional confidence despite earlier market volatility. The X debate underscored deeper tensions in the payments sector.

Graham’s critique of card fees as a “software virus” reflected a broader view among some technologists that legacy rails will struggle to adapt to autonomous agents handling transactions at machine speed. Sheffield’s suggestion that Visa could itself adopt stablecoins for instant settlement illustrated the incumbent’s effort to evolve rather than cede ground.

Supporters of blockchain rails point to the potential for fees below 1 basis point as a structural advantage that could reshape merchant economics.

The gap between Visa’s 12 basis points and sub-1-basis-point blockchain transactions echoes classic disruption patterns in technology, though Visa maintains advantages in global reach and fraud resolution. Augustus’s dual milestones of $40 million in funding and a national bank charter from the OCC mark a notable regulatory opening for stablecoin-native institutions.

The charter, described as rare, positions the 25-year-old Thiel fellow’s bank to operate with traditional banking powers while centering its model on stablecoins.

MoonPay’s $100 million all-stock acquisition of Dflow strengthens its presence on the Solana blockchain, one of the faster networks for decentralized trading. The deal comes as participants in the X debate highlighted how programmable money could enable entirely new behaviors and businesses built around data and APIs.

Kraken’s partnership with MoneyGram addresses a practical limitation for crypto users by enabling cash-outs at physical locations across more than 100 countries.

The arrangement targets Kraken’s growing overseas customer base and bridges digital assets with established remittance infrastructure. 2 billion fund raised by Andreessen Horowitz’s crypto unit commits entirely to crypto founders at a time when stablecoin infrastructure is drawing both venture interest and regulatory scrutiny.

Its scale stands out against earlier bear-market conditions in the sector.

Participants in last week’s X debate noted that agentic commerce could spawn novel business models unlikely to center on today’s card networks. While Visa explores stablecoin integration for on-chain settlement, newer entrants are moving to build parallel systems from the ground up.