Native co-founder Tommy Li explains the infrastructure behind 24/7 stablecoin settlement, addressing why banks and exchanges cannot provide continuous settlement despite being named partners in announcements like Mastercard's June stablecoin network addition. Li details the capital requirements, regulatory framework, and operational challenges of maintaining always-on liquidity between counterparties. The explanation centers on Asia's dominance in stablecoin payments, where Singapore, Hong Kong, and Japan handle approximately $245 billion in volume under clear regulatory frameworks that enable cross-border settlement testing unavailable in markets lacking comprehensive stablecoin rules.
Infrastructure Requirements for Continuous Settlement
Li states that 24/7 settlement requires deep liquidity and reliable execution behind every transaction at any hour. According to Li, regulated stablecoins had to connect to card networks and payment apps over the past couple of years through integrations that allow balances to move through existing payment infrastructure without requiring rebuilds.
Li explains that banks and exchanges, despite appearing in partnership announcements, do not move liquidity between counterparties outside banking hours. Banks close when settlement is needed most and operate with conservative risk appetites and technology limitations. Exchanges match buyers and sellers but do not handle compliance checks, settlement records, and operational exceptions required for live settlement.
Native operates as a licensed trust and company service provider, providing fiduciary and treasury infrastructure that enables clients to manage exposure within a regulated framework. Li states the company built a single system integrating payments, liquidity, and treasury with reconciliation and sanctions checks in the same operational environment clients already use.
Capital and Risk Distribution in Always-On Systems
Li specifies that providing continuous settlement requires holding enough capital to cover everything that might settle while banks are closed. On a normal weekend, this represents two days of volume left idle, extending to three or four days over long holidays. For active cross-border programs, this could mean millions of dollars for smaller operations and tens of millions for large ones.
Li states that continuous settlement changes this calculation because money can convert and move at any hour with transactions reaching finality in seconds, allowing the buffer to be sized to real exposure rather than worst-case weekend scenarios.
According to Li, tail risk sits with the stablecoin issuer and its reserve custodian where the fundamental guarantee must hold. Native does not take principal risk but provides infrastructure enabling clients to structure operations so settlement happens within the regulatory perimeter.
Asia's Regulatory Framework Enables Settlement Testing
Li states that Singapore, Hong Kong, and Japan handle approximately $245 billion in stablecoin payment volume. Each jurisdiction gave stablecoins clear legal standing, which Li identifies as the reason volume concentrates there.
Li explains that these markets are closed through Western working hours, making always-on settlement operationally necessary when payments leave Singapore on weekends with no Western bank available to clear the other side. All three jurisdictions treat stablecoins as supervised, audited, and redeemable payment instruments.
Li notes that each market sets different terms for who may issue and what qualifies as a payment instrument. Hong Kong requires a license upfront, Japan admits foreign coins only after passing a recognition test, and Singapore built rules around single-currency coins and reserves. Li states that settlement operators must hold the right instrument and permission in each market and convert at borders, as coins clearing in Singapore do not automatically clear in Tokyo.
Li identifies the common regulatory thread as all three jurisdictions insisting on issuers answering to regulators, full reserves behind coins, and redemption on demand. Li states that Europe's MiCA rules now run in parallel with Asia's frameworks, making the Asia-to-Europe route the first fully licensed stretch of its kind.
Market Scale and Adoption Gaps
Li cites that approximately 716 million people own crypto, with only 40 to 70 million using it in a given month. Li identifies this gap as the problem nobody has closed, stating it is only solved when people can easily spend what they hold with stablecoins moving in the background.
Li states that cross-border remittances still average more than 6%, with only about one-third of cross-border payments arriving within an hour. According to Li, stablecoin payment volume reached approximately $390 billion last year.
Li states that institutions are ready to use digital assets but want systems that are predictable, secure, and fit existing operational workflows. Li identifies demand leaning toward stablecoins and tokenized real-world assets, with the unfinished challenge being off-ramp capacity during market volatility when far more people want to exit simultaneously.
FAQ
What infrastructure does Native provide for stablecoin settlement?
Native operates as a licensed trust and company service provider, providing fiduciary and treasury infrastructure that integrates payments, liquidity, and treasury operations with reconciliation and sanctions checks in a single system.
Why do Singapore, Hong Kong, and Japan dominate stablecoin settlement testing?
These three jurisdictions handle approximately $245 billion in stablecoin volume because each gave stablecoins clear legal standing as supervised, audited, and redeemable payment instruments, creating the regulatory certainty required for institutional adoption.
