Luke Fan | e/acc

building @magnetaixyz and writing some of my observations

[Luke Fan | e/acc @baaadkk]

@prestonattebery Need it

[Luke Fan | e/acc @baaadkk]

Programmatic payments between machines: Imagine AI agent-powered marketplaces automatically brokering deals for computer resources and other services.

[Chris Dixon @cdixon]

Stablecoins: Payments Without Intermediaries

The internet made information free and global. So why is it still so hard — and expensive — to move money?

The early internet promised a future where anyone could publish, build, or transact without permission. Protocols like email and the web were open and neutral — and they sparked an explosion of creativity, innovation, and entrepreneurship. But somewhere along the way, we veered off course.

Today, the global financial system resembles a patchwork of corporate networks: centralized, closed, and extractive. Behind every transaction is a Rube Goldberg-machine of intermediaries — points of sale, payment processors, acquiring banks, issuing banks, local banks, correspondent banks, foreign exchanges, card networks, and others — each taking a cut, adding latency, and imposing rules. These networks levy unnecessary taxes on commerce and curb innovation. They turn what should be neutral plumbing into high-friction bottlenecks.

Stablecoins, or cryptocurrencies pegged to stable assets like the U.S. dollar, are a way out, a reset — a way to bring the internet’s original vision to money.

The Disruptive Opportunity of Stablecoins

The current payments stack wasn’t built for the internet — it was built for a world rife with fee-taking middlemen (who had been necessary to manage local partnerships, fraud, and operations). Even today, international remittances can cost up to 10% in fees. (A $200 remittance cost 6.62% on average in September 2024.) These aren’t just friction points — they’re effectively regressive taxes on some of the world’s poorest workers. The system we’ve inherited is slow, opaque, and exclusionary, and it leaves billions of people underserved or entirely cut off from the global financial system.

For many businesses, the inefficiencies of traditional payments are also massive. Stablecoins could dramatically improve the situation. B2B payments from Mexico to Vietnam take 3-to-7 days to clear and can cost anywhere from $14-to-$150 per $1000 transacted, passing through as many as five intermediaries along the way, each of whom takes a cut. Stablecoins could bypass legacy systems, like the international SWIFT network and associated clearing and settlement processes, and make such transactions nearly free and instant.

This isn’t theoretical — it’s already happening. Right now, companies like SpaceX are using stablecoins to manage their corporate treasuries (including by repatriating funds from countries with volatile local currencies, like Argentina and Nigeria). Other companies, like ScaleAI, are using stablecoins to make faster, cheaper payouts to global workforces. Meanwhile, on the B2C side, Stripe is the first widely used service to offer crypto payments and it is already offering 1.5% on checkout — half what incumbents charge. This could drastically improve certain businesses’ profit margins: As a16z crypto’s @SamBroner has shown, for a very low margin business like a grocery store, a 1.5% improvement could potentially double net income. (And in a competitive, blockchain-based market, I would expect transaction fees to go much lower.)

Unlike the old financial stack, which evolved in silos, stablecoins are global by default. They live on blockchains: open, programmable networks that anyone can build on. There’s no need to negotiate with dozens of banks across borders. You just plug into the network. People are already recognizing the advantages. In 2024, stablecoins moved $15.6 trillion in value, effectively matching Visa’s volume. While that figure mostly represents financial flows (versus retail payments), its magnitude still suggests we’re on the verge of a financial infrastructure shift, one that doesn’t rely on duct-taping 20th-century systems together.

Instead, we can build something new, something truly internet-native — or what Stripe calls “room-temperature superconductors for financial services,” where rather than lossless energy transmission, you get lossless value transmission.

The WhatsApp Moment for Money

Stablecoins are our first real shot at doing for money what email did for communication: make it open, instant, and borderless.

Consider the evolution of text messaging. Before apps like WhatsApp, sending a text across borders meant paying 30 cents per message. Even then, you were lucky if it actually got delivered. Then came internet-native messaging: instant, global, free. Payments are now where messaging was in 2008: Fragmented by borders. Burdened by middlemen. Gatekept by design.

Stablecoins offer a clean-slate alternative. Instead of stitching together clunky, costly, and outdated systems, stablecoins flow seamlessly on top of global blockchains. These systems are programmable, composable, and designed to scale across borders. Already, stablecoins are slashing the cost of remittances: Sending $200 from the U.S. to Columbia using traditional methods will cost you $12.13; with stablecoins, it costs $0.01. (Fees to convert from stablecoins to local currencies can range from as high as 5% to as low as 0%, and prices continue to fall due to competition.)

Just as WhatsApp disrupted costly international phone calls, blockchain payments and stablecoins are transforming global money transfers.

Regulation: From Bottleneck to Breakthrough

It’s tempting to frame regulation as an obstacle — but smart legislation is actually the unlock.

Clear rules of the road for stablecoins and crypto market structure could finally allow these technologies to move out of the sandbox and toward widespread adoption. For years, decentralized finance (DeFi) was trapped in a kind of self-contained, circular, “crypto-for-crypto” economy. Not because the tools weren’t useful, but because regulators made it incredibly difficult to bridge into traditional financial systems.

That’s changing. Policymakers are now actively shaping rules to recognize and regulate stablecoins in ways that maintain U.S. competitiveness, protect consumers, and allow innovation to flourish. Thoughtful regulation — like frameworks that differentiate network tokens from security tokens — can protect against bad actors while giving good actors the clarity they need to build. In fact, a forthcoming bill clarifying this regulation could pave the way for even broader adoption and integration into the global financial system. (Congress is hashing out the details as I write.)

Building Public Goods for Everyone’s Benefit

Traditional finance is built on private, closed networks. But the internet showed us the power of open protocols — like TCP/IP and email — to drive global coordination and innovation.

Blockchains are the internet’s native financial layer. They combine the composability of public protocols with the economic strength of private enterprise. They are credibly neutral, auditable, and programmable. Add stablecoins on top and you get something we’ve never really had before: open money infrastructure.

Think of it like a public highway system. Private companies can still build the vehicles, the businesses, the roadside attractions. But the roads themselves are neutral and open for everyone.

Blockchain networks and stablecoins are doing more than just cutting fees. They’re enabling new categories of software:

- Programmatic payments between machines: Imagine AI agent-powered marketplaces automatically brokering deals for computer resources and other services.

- Micropayments for media, music, and AI contributions: Imagine setting a budget with some simple rules and leaving it to “smart” wallets to disburse the payments.

- Transparent payouts with full audit trails: Imagine using these systems to track spending in government.

- Global commerce without a mess of intermediaries: Imagine settling international transactions instantly at negligible cost — in fact, you don’t have to imagine it as it’s already happening.

The moment for blockchain networks and stablecoins is now: Technology, market demand, and political will are lining up and making these applications a reality. A stablecoin bill could be on the floor this year, and regulatory agencies are weighing frameworks that finally align risk with the right oversight. In the same way that early internet startups were able to thrive once it was clear they wouldn’t be shut down by telcos or copyright lawyers, crypto is ready to cross the chasm from financial experiment to infrastructure backbone, with stablecoins leading the way.

We don’t have to patch the old system.

We can make a better one.

[Luke Fan | e/acc @baaadkk]

@Uniswap dazzling #ClaraBow

[Luke Fan | e/acc @baaadkk]

@Saylorsatsire

[Luke Fan | e/acc @baaadkk]

@magnet_mbb @Saylorsatsire just did, CA on base: 0x2B996cDa433F83B73C3519275D0061Ee1fd9adF0

[Virtuals Ventures @virtuals_vc]

3/ Wave 1 of AI Agents Demo Showcase | Virtuals Demo Day 2025

@Luna_virtuals
@HeyTracyAI
@Vader_AI_
@Fuzzai_agent
@Magnet_mbb by @Magnetaixyz
@Byte__AI
@AcolytAI

https://t.co/SidYAdcgfI

[Allora @AlloraNetwork]

Most AI agents act on command. And now, they can reason via the intelligence layer.

Allora is coming to Magnet MCP Server, built by @magnetaixyz on @base, enabling the execution of smarter, more context-aware actions via Allora's predictive price feeds.

[lude.base.eth @The_JesusCrust]

@everythingempty @magnet_mbb recently introduced a super unique staking mechanism.
https://t.co/vBVcc1tZyJ

[Magnet Labs @magnetaixyz]

We're excited to announce our collaboration with @AlloraNetwork!
By integrating Allora's prediction model with our Magnet MCP server, we're unlocking real-time, AI-powered crypto automation—helping users make faster, smarter on-chain decisions. 🧵

1/4

[Luke Fan | e/acc @baaadkk]

@jessepollak true legend man

[Luke Fan | e/acc @baaadkk]

@broleon 个人观点：不止币安，几乎所有的offshore CEX，山寨被dex抢流量，主流被etf/华尔街抢流量，被两头夹逼

[Luke Fan | e/acc @baaadkk]

One more thing, @OpenAI has already joined the game. We're keeping our heads down and building.

We're betting on the huge potential of MCP and will continue contributing to the ecosystem.

source: https://t.co/hd63vMjtkA
5/5

[Sam Altman @sama]

people love MCP and we are excited to add support across our products.

available today in the agents SDK and support for chatgpt desktop app + responses api coming soon!

[Luke Fan | e/acc @baaadkk]

We've been working on @AnthropicAI MCP since last Nov, and it's great to see the big growth coming soon. Here's what we've built for the MCP world:

1/5) 🧵

[Magnet Labs @magnetaixyz]

2025 is here, and wow, it’s already feeling like a game-changer for AI + crypto. Although the year has just begun, we're already pushing boundaries across three core initiatives. Consider this our New Year's gift to the Magnet Fam!

Key highlights from our 2025 roadmap below! 👇

1. Big Moves in Product Innovation

Get ready for MBB 2.0, the second version of our AI Agent Meme Blind Box, and it’s next-level. This update is about to completely transform your meme experience 🎉

Also, Magnet is taking it up a notch in 2025 by integrating Claude MCP + Base Network to create an AI Agent Freelance platform powered by Base’s global payment network!

This includes:
- Pioneering monetization methods for the MCP ecosystem through global micropayments and a tokenized Creator Hub for Claude MCP
- A marketplace for MCP crypto servers and services - Building Magnet Desktop, an open-source MCP server manager built on Claude MCP.
👉https://t.co/Badq6fbEgt

2. Doubling Down on @base 🔵

We've joined forces with @OurTinTinLand! This groundbreaking initiative unites key APAC partners to accelerate Base's presence in the region.

Onboarding the next wave of devs + users to Base!

3. Pushing the Claude MCP Ecosystem Forward

Claude MCP is open-source, and we’ve been here since Day 1.

Our focus:
- Curating the Awesome MCP Crypto List
- Developing Magnet Desktop for anyone to access MCP servers
- Founding the MCP Crypto Alliance to push the boundaries between Crypto and the MCP ecosystem

Want to help shape the future of MCP + crypto? Our DMs are open!

2025 is going to be HUGE for Magnet. Our focus is clear: simple, powerful tools for the Base Network & Claude MCP. The AI + crypto revolution is just starting—and we’re here for it.

Keep building. Stay based. Let’s go. 🙌

https://t.co/xCgepPANEj

[Luke Fan | e/acc @baaadkk]

Several working MCP servers, including one that works with @base and @CoinbaseDev MPC wallet SDK: https://t.co/smRmC2Jlb1

4/5

[Sam Altman @sama]

people love MCP and we are excited to add support across our products.

available today in the agents SDK and support for chatgpt desktop app + responses api coming soon!

[Luke Fan | e/acc @baaadkk]

Yes, ofc!

[Sam Altman @sama]

people love MCP and we are excited to add support across our products.

available today in the agents SDK and support for chatgpt desktop app + responses api coming soon!

[Luke Fan | e/acc @baaadkk]

Introducing Claude USDC Transfer: The @AnthropicAI native way for FREE transferring on @base, powered by @CoinbaseDev MPC wallet and @magnetaixyz protocol.
This is just the start of LLM extensions - with Magnet, everything gets easier - web2, web3, you name it!