As cryptocurrency continues its march toward 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 are increasingly becoming essential tools in the treasury toolbox. Yet to successfully navigate this changing landscape, it is essential that finance professionals master the specialized vocabulary that defines these payments innovations.
Staying ahead of terms like “stable sandwiches,” zero-knowledge proofs, atomic swaps, on-chain liquidity, and more. will enable financial executives to make informed decisions on the integration of these technologies into their payment systems.
After all, the ease of using cryptocurrencies in corporate finance depends on the ability to understand these concepts and apply them in real-world scenarios. As 2025 begins, mastering the evolving language of payments, innovation will help CFOs and treasurers stay ahead of the curve, ensuring their organizations remain competitive in an increasingly digital economy.
Understanding these terms isn’t just academic: it’s about unlocking the usability of cryptography for enterprise applications.
See also: Stablecoins move from cross-border B2B to real-time treasury use cases
Mastering Crypto Vocabulary for the Future of Payments
Stablecoins emerged as a bridge between traditional finance and the world of digital currencies. In a market known for its volatility, stablecoins provide a link to familiar, stable values like the US dollar. However, understanding the concept of a stablecoin sandwich goes even further.
For the Outlook 2030 B2B event in late 2024, PYMNTS spoke with Ran Goldi, senior vice president, payments and networking at Fireblocks, and Nikola Plecas, head of marketing at Visa Crypto, to dissect 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 the effectiveness of blockchain in cross-border payments.
As Goldi explained, the process involves converting a currency, like the Mexican peso, into a dollar-pegged stablecoin (e.g. USDC). This digital currency is then instantly transferred to the destination country, where it is converted back into local fiat currency, such as the British pound. He shared a concrete example: in Latin America, importers use stablecoins to pay Asian suppliers. Payments that previously took days are now cleared in minutes, reducing storage costs and customs delays.
This speed gives payment providers a significant advantage in markets where efficiency is essential. “Payments companies that don’t adopt these solutions risk falling behind,” Goldi said.
For CFOs and treasurers, the key to understanding stablecoin sandwiches is knowing how to effectively integrate these tools into treasury functions. The flexibility of combining various stablecoins within a transaction allows financial managers to balance risks, reduce fees, and maintain payment efficiency, all while remaining within regulatory frameworks.
Learn more: What was the biggest Crypto story of 2024? Hint: His name wasn’t Elon.
Why CFOs and Treasurers Should Care
PYMNTS Intelligence found this year that blockchain technology has many potential benefits to meet the unique needs of regulated industries, including finance, healthcare, identity verification and supply chain management, among others. name just a few.
As cryptocurrencies seek to become a staple of global payments, the issue of privacy becomes paramount. Zero-knowledge proofs (ZKP) allow one party to verify information from another without actually revealing that information. In the world of payments, ZKPs help ensure that sensitive data, such as transaction history or payment details, remains confidential while ensuring the legitimacy of the transaction.
For treasurers and CFOs managing sensitive corporate finances, ZKP technology enables CFOs to validate compliance with anti-money laundering (AML) and know your customers (KYC) standards while protecting data sensitive aspects of the company.
On-chain liquidity, or liquidity provided directly on a blockchain network via decentralized exchanges (DEXs) or liquidity pools, eliminates intermediaries, reduces costs and increases transaction speed. Treasurers leveraging on-chain liquidity can optimize working capital in real time.
Atomic swaps, for their part, are smart contracts allowing direct exchanges of cryptocurrencies between parties without intermediaries. Atomic swaps can simplify cross-border or multi-currency payments, an essential feature for treasurers facing multi-currency exposures.
Ultimately, understanding blockchain terms allows financial leaders to make informed decisions about adopting or avoiding certain technologies. Mastering this language will enable leaders to identify opportunities, mitigate risks, and confidently lead their organizations into the digital future.
