In this episode of Stable Talks, Caio Barbosa sat down with Chuk Okpalugo, Head of Product at Paxos, to discuss the growing role of stablecoins in the global economy — from the evolution of yield-bearing stablecoin models to the regulatory challenges shaping the market.
The conversation offers key insights into how companies are creating their own stablecoins, the behind-the-scenes of Paxos’ stablecoin-as-a-service model, and the possibilities unlocked by self-custodied dollar accounts.
🎧 Listen to the full episode below or read on for the main highlights of the conversation.
Highlights from the conversation
1. On-Chain Banking: The New Financial Paradigm
"On-chain banking is the ability to store, send, receive, and spend value — all directly on the blockchain."
— Chuk Okpalugo
The concept of a “bank on the blockchain” and its main use cases
How stablecoins are becoming infrastructure for payments and value storage
Global access to dollars in high-inflation and currency volatility environments
2. Types of Stablecoins and the Paxos Model
"Issuing a stablecoin is technically easy. But managing trust, regulation, liquidity, and network — that’s where the real challenge lies."
— Chuk Okpalugo
Key stablecoins issued by Paxos: PYUSD (PayPal), USDG, USDP, and USDL (yield-bearing)
Pax Gold: a case study in real gold tokenization
The importance of liquidity, distribution networks, and reserve management
3. Yield-Bearing Stablecoins: Potential and Regulatory Complexity
Models like rebasing vs. yield through commercial contracts
The role of issuers, jurisdictions, and regulation in yield-bearing stablecoins
How this model can transform corporate treasury and democratize access to fixed income
4. The Brazilian Perspective
"Brazil is at the forefront of financial innovation, with an established RWA ecosystem that’s open to tokenization."
— Caio Barbosa
How BTG Pactual, Nubank, and Circle are shaping this movement
Opportunities for fintechs and banks in building tokenized global accounts
The importance of local regulation to unlock new business models
5. Self-Custodial Banking: Freedom with Responsibility
Applications that allow end-users to store and move dollars without intermediaries
Global financial inclusion opportunities through self-custodied wallets
The need to balance freedom, security, and integration with the traditional system
6. Why Issue Your Own Stablecoin?
Branding, yield, and network control: what’s at stake
The real challenges of running a stablecoin (reserves, regulation, liquidity)
How the Global Dollar Network model allows companies to reap the benefits of stablecoins without the operational burden
The Future of Stablecoins is Collaborative
The conversation makes one thing clear: stablecoins are not a hype — they’re infrastructure. And like all powerful infrastructure, they must be built collaboratively, with responsibility and long-term vision.
"I believe we have 5 to 10 years ahead of us for massive integration of stablecoins into the global financial system."
— Chuk Okpalugo (Paxos)
What is Paxos' stablecoin-as-a-service model?
Paxos offers a stablecoin-as-a-service platform that allows companies to create and issue their own branded stablecoins without building the underlying infrastructure from scratch. Paxos handles the complex aspects including trust management, regulation, liquidity, and network integration, enabling businesses like PayPal (with PYUSD) to launch stablecoins while focusing on their core products and user experience.
What is on-chain banking and how do stablecoins enable it?
On-chain banking is the ability to store, send, receive, and spend value directly on the blockchain without traditional banking intermediaries. Stablecoins are the core infrastructure that makes this possible by providing a stable unit of account on-chain. This model enables global access to dollar-denominated accounts, particularly valuable in high-inflation environments and regions with limited banking access.
What are yield-bearing stablecoins and how do they work?
Yield-bearing stablecoins are digital assets pegged to a fiat currency that also generate returns for holders, typically by investing reserves in interest-bearing instruments like US Treasury bonds. Unlike traditional stablecoins where the issuer keeps all reserve yields, yield-bearing models pass some or all of the returns to token holders, creating an incentive to hold stablecoins beyond just payments and transfers.
How do self-custodied dollar accounts using stablecoins benefit users globally?
Self-custodied dollar accounts using stablecoins allow anyone with an internet connection to hold, send, and receive US dollar-denominated value without needing a traditional bank account. This is transformative for people in countries with unstable currencies, limited banking infrastructure, or capital controls, as it provides direct access to a stable store of value and global payment capabilities through a simple digital wallet.
