Digitalization of payments

There has been considerable interest in digital payments which is, in part, potentially due to the huge profits that Tether is earning - having just reported it generated over $700 million of profit in just the fourth quarter of 2023 Furthermore is the realisation that the cost of making payments globally is massive, with McKinsey estimating that these cost will be in excess of $3trillion by 2026. Not only do companies want a share in this $3trillion, but incumbent organisations in the payments sector are looking at how they can also reduce the cost of moving money. The need for lower costs payments is likely to be further fuelled as more real-world assets such as funds, bonds, equities and real estate are tokenized. Instead of making income distributions every six months, there is likely to be a demand to allow investors to have access to income from the assets they own quarterly or even monthly whereby resulting in a higher number of smaller payments being made more frequently.

One o…