Raj Parekh: Open source payment systems will transform finance, stablecoin integration faces critical infrastructure gaps, and startups have unique opportunities in B2B payments

Key takeaways

• Open source payment systems present a transformative opportunity for the financial landscape.
• The integration of blockchain technology can significantly enhance payment systems.
• There’s a notable lack of infrastructure for stablecoin integration within fintech.
• Future payment systems are expected to shift towards open source models.
• Blockchain is anticipated to play a crucial role in the evolution of payments.
• Startups have significant opportunities in B2B payments and payroll via stablecoins.
• Stablecoins facilitate easier global expansion by reducing compliance burdens.
• Payment systems typically begin as neutral entities, which is key to their longevity.
• Blockchain governance structures mirror historical decentralized governance models.
• Organizations will choose blockchain networks based on specific use cases.
• Stablecoin issuers need political leverage and distribution partners for success.
• Central banks have yet to feel the impact of stablecoins on their markets.
• Major economies are incentivized to adopt stablecoins to compete globally.
• Card payments still have growth potential in the global market.
• Governments may adopt permissionless blockchains for payment systems in the future.

Guest intro

Raj Parekh is Head of Stablecoins and Payments at the Monad Foundation, where he leads the blockchain’s payment ecosystem strategy. Previously, he served as Director of Visa’s Global Crypto Product, where he launched stablecoin settlement infrastructure now processing hundreds of millions in volume and pioneered Visa’s strategy to accept stablecoins from crypto-native issuers. He founded Portal, a developer platform for stablecoin payments across blockchains, which was acquired by the Monad Foundation in July 2025 and continues operating as a wholly-owned subsidiary.

The potential of open source payment systems

• “I’m a big believer in just open source payment systems. I think that’s just a huge opportunity and something we’ve never seen before.” – Raj Parekh
• Open source technology could transform traditional payment systems by enabling more flexible and innovative solutions.
• The combination of blockchains offers a pathway to achieve significant advancements in payment systems.
• “I think with the combination of blockchains we do have something that we can actually achieve.” – Raj Parekh
• Understanding the potential impact of open source technology is crucial for financial organizations looking to innovate.
• Open source systems may eventually replace traditional banking methods in the future.
• “It made a lot more sense for everything to move to open source systems at some point.” – Raj Parekh
• The strategic shift towards open source models reflects a broader trend in the evolution of payment systems.

Infrastructure gaps in fintech for stablecoin integration

• “A lot of missing infrastructure in the space if I’m a fintech or an FI or someone that wants to go build with this infrastructure there just wasn’t really a lot of options.” – Raj Parekh
• The lack of infrastructure presents a critical gap affecting the development of fintech solutions using stablecoins.
• Fintech companies face challenges in integrating stablecoins due to limited infrastructure options.
• The absence of robust infrastructure limits the potential for innovation in the stablecoin space.
• Addressing these infrastructure gaps is essential for the growth of stablecoin-based financial solutions.
• The current state of fintech infrastructure poses challenges for stablecoin integration.
• Organizations need to navigate these limitations to successfully implement stablecoin solutions.
• The development of comprehensive infrastructure is necessary for the widespread adoption of stablecoins.

Opportunities for startups in stablecoin payment solutions

• “I still think there’s a lot of opportunity around specific verticals around B2B payments… I think you’re starting to see a lot of uptake in companies that are thinking about payroll differently as well.” – Raj Parekh
• Startups have significant opportunities in specific payment verticals that larger companies may overlook.
• The stablecoin space presents potential for innovation and growth in B2B payments and payroll.
• Stablecoins simplify global operations by reducing compliance and regulatory burdens.
• “Stablecoins have effectively made being a global company a lot easier and faster where a lot of the traditional companies have all this compliance and regulatory and legal overhead.” – Raj Parekh
• Understanding the current landscape of payment solutions is crucial for startups entering the stablecoin space.
• The potential for startups in stablecoin payment solutions is driven by the limitations of larger organizations.
• Startups can leverage stablecoins to address niche markets and innovate in payment solutions.

The role of blockchain in transforming payments

• “I think blockchains are gonna play a really big role in changing that.” – Raj Parekh
• Blockchain technology is anticipated to have a transformative impact on the future of payments.
• The integration of blockchain can enhance the efficiency and security of payment systems.
• Blockchain offers a new paradigm for financial transactions, shifting away from traditional methods.
• The potential of blockchain in payments is driven by its ability to provide decentralized and transparent solutions.
• Organizations need to understand the implications of blockchain technology for the payments industry.
• The evolution of payment systems will likely be influenced by ongoing developments in blockchain technology.
• Blockchain’s role in payments highlights a shift towards more innovative and efficient financial solutions.

The importance of neutrality in payment systems

• “Payments have always been an incredibly neutral system that’s grown over time.” – Raj Parekh
• Neutrality is essential for the durability and success of payment systems.
• Successful payment systems often start as neutral organizations, which contributes to their longevity.
• The historical context of payment systems like Visa and SWIFT provides insight into the importance of neutrality.
• Blockchain governance structures mirror historical decentralized governance models in payment systems.
• “These things are not novel from an organizational standpoint but payment system is just being so broadly impactful.” – Raj Parekh
• Understanding the role of neutrality in payment systems is crucial for analyzing future blockchain implementations.
• The governance structures in blockchain reflect established practices in traditional payment systems.

Strategic considerations for stablecoin issuers

• “We typically look for issuers that are either working that have political leverage or working directly with their governments.” – Raj Parekh
• Stablecoin issuers need political leverage and distribution partners to succeed in uncertain regulatory environments.
• Not all stablecoin issuers are strategically thinking about their market position and growth potential.
• “It’s pretty clear you can tell the ones that are thinking about this strategically versus the ones that are seeing the opportunity for what it is today.” – Raj Parekh
• Strategic considerations are crucial for stablecoin issuers navigating the competitive landscape.
• Understanding the challenges faced by stablecoin issuers is essential for successful market positioning.
• The success of stablecoin issuers depends on their ability to navigate regulatory contexts and leverage partnerships.
• Stablecoin issuers must consider their strategic approach to market entry and growth.

Central banks and the impact of stablecoins

• “I think we’re still in the early days where central bankers don’t really feel the impact of stablecoins yet in their market.” – Raj Parekh
• Central banks have yet to fully experience the impact of stablecoins on their markets.
• The rise of stablecoins presents a potential shift in monetary policy for central banks.
• Central banks will either innovate with the private sector or ignore the rise of dollarization.
• “Once they do [feel the impact], they’re gonna either try to innovate and work with the private sector.” – Raj Parekh
• Engaging with policymakers willing to innovate is crucial for the stablecoin space.
• The relationship between stablecoins and central banking indicates a potential future shift in monetary policy.
• Collaboration between the stablecoin industry and responsive policymakers is essential for effective regulation.

The future of global payment systems

• “If you’re a major bank or policymaker in another country call it like a major economy it seems in your interest to want to get ahead or be a participant here.” – Raj Parekh
• Major economies have a strategic interest in adopting stablecoins to compete globally.
• Countries could achieve global payment system integration by leveraging blockchain technology.
• “Leveraging open source systems like blockchains connected to their domestic systems could actually be a huge accelerant.” – Raj Parekh
• The potential of blockchain technology for rapid integration highlights a shift in global payment systems.
• Understanding the competitive landscape of stablecoins is crucial for major economies considering adoption.
• The integration of blockchain technology could significantly impact global payment systems.
• The future of global payment systems will likely be influenced by technological advancements and strategic interests.

The ongoing relevance of card payments

• “Card payments still have a lot of room to run there’s still a lot of market structures and infrastructure companies that are required to be stood up.” – Raj Parekh
• Card payments continue to have growth potential in the global market.
• The competitive landscape of payment systems includes ongoing opportunities for card payments.
• Blockchains offer an easy payment system with low upstart costs compared to traditional card issuing.
• “Blockchains just being open source and just available anywhere is an easy payment system for a user to inherit with very little upstart cost.” – Raj Parekh
• Understanding the role of card payments in the payment system landscape is crucial for strategic planning.
• The viability and potential growth of card payments reflect their ongoing relevance in the market.
• The operational advantages of blockchain technology highlight its accessibility and cost-effectiveness.

Governments and the shift towards digital currencies

• “What you can do is lean into technology that makes cash increasingly inconvenient.” – Raj Parekh
• Governments will increasingly lean into technology to make cash less convenient, benefiting tax compliance.
• The strategic viewpoint reflects how governments might leverage technology to enhance tax compliance.
• Governments will likely adopt permissionless blockchains for their payment systems in the long term.
• “I’m obviously a big believer in permissionless public blockchains… they’re just gonna move a lot faster.” – Raj Parekh
• The potential shift in government payment systems towards blockchain solutions highlights a trend in digital currency adoption.
• Understanding the relationship between cash usage, tax compliance, and government technology initiatives is crucial.
• The adoption of blockchain technology by governments indicates a significant shift in financial systems.