Mike Truter

The worlds of DeFi and TradFi are converging, and there is no better example than payments on blockchains, with stablecoin issuers pursuing bank charters, and banks embracing blockchain and tokenization. This confluence presents an opportunity to implement best practices from both, yet carries a risk of importing complexities from each.

This roundtable convenes experts from DeFi and TradFi to share learnings and discuss key topics that can lead to stronger alignment and collaboration as we work towards common objectives:

1. Standards and Interoperability: Connectivity is critical to unlocking the ecosystem benefits of blockchain, and standards is key to enabling connectivity. What is the right approach for standards with payment tokens? Is the approach of broad standards developed with industry-level consensus (like with ISO20022) viable in a decentralized world? How can we collaborate and drive convergence on token standards?
2. Detecting and Responding to Financial Crimes: Payment tokens on blockchain introduces greater transparency, real-time traceability, and enhanced enforcement capabilities, which could enable regulators and financial institutions to detect, monitor, and act on illicit activity more efficiently than ever before. What is the current state of play? What are the existing tools available, how well do they perform and what are the limitations?
3. Payment Controls: TradFi and DeFi take different approach towards payment controls, which has often been framed as efficiency versus safety. Is this still an appropriate characterization? Can we enable efficiency without compromising safety? How are payment controls applied currently by TradFi and DeFi players? How could regulations further evolve to account for these new techniques?

Cross-border payments are the backbone of global trade and financial flows, yet they continue to face significant frictions, including inefficiencies, high costs, and complex regulatory landscapes. Central banks and financial institutions have been exploring various approaches to deliver public goods —bilateral, regional, and multilateral initiatives— to improve speed, cost, accessibility, transparency and resilience. By sharing lessons learned, key challenges, and past strategies, Part A of this roundtable will be an opportunity for discussants to take stock of key developments in cross border payments and importantly provide an opportunity to draw out key lessons and insights from the past and present evolution of cross border payments. 
 
Building on these insights, Part B will focus on the opportunities for transformation to explore what is next. The discussion will explore how private sector innovation and public-private collaboration can enhance cross-border payment systems, with a particular emphasis on the opportunities that the newly minted Nexus global hub brings as it comes into live operations. Key areas of exploration include emerging use cases, commercial models, industry partnerships, and technological advancements. A core consideration will be the long-term sustainability of these solutions—ensuring that improvements are scalable, inclusive, and resilient in an increasingly interconnected financial ecosystem. 

This roundtable is designed to generate tangible insights that contribute to the evolution of cross-border payments. A detailed roundtable report will be prepared, capturing key discussion points, lessons learned, and emerging recommendations. This document will serve as a resource for participants and industry stakeholders, supporting future iterations and potential scaling of innovative solutions in this space.