Podcast Episode 2: Pain Points in Crypto Infrastructure

Podcast Episode

Matt and Reggie chat with Sara Xi, Chief Product Officer of Prime Trust. Join us for a deep dive into the crypto infrastructure that covers key building blocks, pain points, and common solutions.

Welcome to Fintech Layer Cake, the fintech podcast where industry leaders break down complex financial technology topics into digestible, actionable insights. Whether you’re a seasoned professional or just curious about the world of fintech, we make it easy to understand—one layer at a time. Tune in for expert interviews, market trends, and insider tips that make fintech a piece of cake for everyone!

This episode of the Fintech Layer Cake podcast features a deep dive on pain points in crypto with Sara Xi, Chief Product Officer of Prime Trust.

Fintech Layer Cake is presented by Lithic and hosted by Matt Janiga, our general counsel, and Reggie Young, our product counsel and author of the Fintech Law TL;DR newsletter.

Highlights

What is PrimeTrust?

Sara Xi: We're a fintech infrastructure provider. There is a huge space for infra providers that hasn't been very well understood. All the businesses launching new products in blockchain and crypto space all share the same set of needed functions. And oftentimes, as they start their business, they don't quite understand what they need.

What does a typical crypto journey look like?

1. If you service any end user that touches fiat, you will have to KYC that end user and understand their source of funds. KYC is typically the first hurdle.
2. You want to think about who's going to help you with the custodial needs.
3. Once the account is open, you need to on-ramp some fiat to token.
4. If you're starting a project or you're starting a company, you want to think about how can you add other products and services that might help you boost revenue and kick out your run rate.

What is the responsibility of being an infrastructure provider?

Sara Xi: It's our responsibility to keep everyone operating within the confines of what the banks require and we handle chargebacks. And we also give our customers suggestions on how you can improve your customer onboarding. It starts with who you onboard to really reduce fraud in this space.

When do maintenance windows and deployment schedules happen?

Sara Xi: Pick your window that affects people the least. Communication and transparency are key. Give people status updates, email your customers, or have account managers contact them directly.

What are some of the harder infrastructure problems in blockchain right now?

Sara Xi: We’ve so many new layer ones coming out, interoperability and how to be able to deploy apps. Basically EVM compatibility, to me, is pretty important and how to really figure out where the trend is going to go.

What are you really excited about coming up for the rest of 2022 as you think about blockchain infrastructure?

Sara Xi: I'm very interested in the true power of smart contracts to solve real-world problems.
Or how we use smart contracts to solve royalties. If we tokenize it correctly, you can pay every player in the ecosystem, from the artist to the platform, to the buyer. You can pay everyone fairly and automatically.

What trends are you seeing in crypto on their way out? What do you see coming this year and 2023?

Sara Xi: Easier UI/UX has continued to stay. For new user acquisition, you’ve got to make it easier and secure for the average consumer.

What are some things you think this administration has to nail to really advance things for blockchain and crypto?

Sara Xi: More clarity around tax treatment. And then for us, we spend a lot of time trying to make sure we have accurate data, accurate Siemens impact reporting for our customers and their end users.

Be sure to check out Crypto and Fintech: A World of Opportunities at the Intersection to keep learning about crypto.