Wise bypasses SWIFT by obtaining "direct connections" to a country's domestic banking system, a license rarely given to non-banks. This process is arduous, taking five years in the UK, creating a significant barrier to entry for competitors.

The company, originally TransferWise, was born when two Estonian founders devised a way to swap currencies between their UK and Estonian bank accounts to avoid exorbitant fees. This origin story is the DNA of the company's relentless focus on cheap, fast cross-border payments.

Despite the hype, stablecoins face significant friction in on/off-boarding from fiat currency, limiting their current utility. Wise itself has stated it would use stablecoin rails if they became cheaper and faster, positioning it to leverage the technology rather than be disrupted by it.

Wise reinvests profits from growing volume into infrastructure like direct connections. This lowers operating costs, enabling further fee reductions. The cheaper, faster service attracts more customers and volume, creating a self-reinforcing cycle that strengthens its market position.

IBKR's low-cost, tech-first model is strategically counter-positioned against high-touch incumbents like Charles Schwab. Adopting IBKR's model would require competitors to cannibalize their profitable existing business models, creating a powerful competitive moat based on the innovator's dilemma.

Legacy credit card companies can't simply match Robinhood's 3% offer due to their massive headcounts and marketing spend. Adopting a tech-first, low-cost model would require painful restructuring that cannibalizes their existing, profitable business—a classic innovator's dilemma.

Unlike banks using the slow, costly SWIFT network, Wise maintains local liquidity pools. A UK-to-US transfer is paid from its US account while the sender's pounds replenish its UK account, avoiding cross-border movement and associated fees.

Instead of disrupting the established SWIFT network, Japan's stablecoins are positioned to work alongside it. They offer a parallel system for faster, cheaper transactions, potentially reducing fees by up to 80%, while leveraging SWIFT's existing trust and compliance frameworks for broader adoption.

Remitly thrives by offering a service that is cheaper and more efficient than traditional players like Western Union, yet remains integrated within the established banking system. This unique position allows it to serve users' needs without triggering the regulatory skepticism faced by decentralized solutions like stablecoins.