‘Stablecoin Sandwich’ and Other Crypto Terms

As cryptocurrency continues march towards mainstream adoption, CFOs and treasurers find themselves at the forefront of what could be a financial revolution.

No longer the domain of blockchain enthusiasts and tech startups, crypto and blockchain solutions have become an important tool in the treasury toolbox. Despite successfully navigating this shifting landscape, it is important for financial professionals to master the specialized vocabulary that defines these payment innovations.

Prioritizing terms like “stablecoin sandwiches,” zero-knowledge proofs, atomic swaps, on-chain liquidity and more will allow financial leaders to make informed decisions about their integration. technologies into their payment systems.

After all, the applicability of crypto to business finance depends on the ability to understand these concepts and apply them to real-world scenarios. As 2025 begins, staying fluent in the changing language of payment innovations will help CFOs and treasurers stay ahead of the curve, ensuring their organizations remain competitive in the growing digital economy.

Understanding these terms is not just academic – it’s about unlocking the usability of crypto for business applications.

See also: Stablecoins Move From Cross-Border B2B to Real-Time Treasury Use Cases

Mastering Crypto Vocabulary for the Future of Payments

Stablecoins have emerged as a bridge between traditional finance and the world of digital currencies. In a market known for volatility, stablecoins offer a tether to familiar, stable values ​​like the US dollar. However, understanding the concept of a stablecoin sandwich takes it one step further.

For the Outlook 2030 B2B event at the end of 2024, PYMNTS sat down with Ran GoldiSVP, payments and network at Fire barriersand Nikola lefthead of commercialization, Visayan Crypto, in dissecting the benefits and myths surrounding blockchain-based payments, including the concept of the “stablecoin sandwich,” a method of using stablecoins to transfer value between currencies, serves as a practical illustration of blockchain’s efficiency in cross-border payments.

Ace Goldi explained, the process involves converting a currency, such as Mexican pesos, into a dollar-pegged stablecoin (eg, USDC). This digital currency is then quickly transferred to the receiving country, where it is converted back into local fiat currency, such as British pounds. He shared a real world example: In Latin America, importers are using stablecoins to pay suppliers in Asia. Payments that used to take days are now settled in minutes, reducing storage costs and customs delays.

This speed gives payment providers a significant edge in markets where efficiency is important. “Payment companies that don’t embrace these solutions risk falling,” Goldi said.

For CFOs and treasurers, the key to understanding stablecoin sandwiches is identifying how to integrate these tools effectively within treasury functions. The flexibility to combine different stablecoins within a single transaction allows financial leaders to balance risk, reduce fees and keep payments efficient – ​​while staying within regulatory frameworks.

Read more: What is the Biggest Crypto Story of 2024? Hint: It’s Not Named Elon

Why CFOs and Treasurers Should Care

PYMNTS Intelligence this year found that blockchain technology has many potential benefits to serve the unique needs of regulated industries, including finance, healthcare, identity verification and supply chain management, to name a few.

As cryptocurrencies look to become a fixture in global payments, the question of privacy becomes paramount. Zero-knowledge proofs (ZKPs) allow one party to verify a piece of information to another without actually revealing that information. In the world of payments, ZKPs help ensure that sensitive data, such as transaction history or payment details, remain confidential while still ensuring the legitimacy of the transaction.

For treasurers and CFOs who manage sensitive business finances, ZKP technology allows CFOs to validate compliance with anti-money laundering (AML) and know-your-customer (KYC) standards. while protecting sensitive corporate data.

On-chain liquidity, or liquidity provided directly in a blockchain network through decentralized exchanges (DEXs) or liquidity pools, eliminates intermediaries, reduces costs and increases transaction speed. Treasurers using on-chain liquidity can optimize working capital in real time.

Atomic swaps, for their part, are smart contracts that enable the direct exchange of cryptocurrency between parties without intermediaries. Atomic swaps can simplify cross-border or cross-currency payments, a critical feature for treasurers dealing with multi-currency exposures.

Ultimately, understanding blockchain terms equips financial leaders to make informed decisions about adopting or avoiding certain technologies. Mastering this language will empower leaders to identify opportunities, mitigate risks, and lead their organizations confidently into the digital future.