Priya Jaiswal has spent years in the trenches of banking and cross-border flows, and she’s now helping translate bank-grade processes onto stablecoin rails. In this conversation, she unpacks how Coastal Bank’s partnership with Tempo keeps compliance, ISO 20022, and confirmations intact while swapping out only the settlement layer. We cover correspondent banking frictions, wallet onboarding, liquidity, custody, FX, and the reliability and governance choices that make 24/7 settlement in minutes viable for regulated institutions.
Coastal Bank is using stablecoins for cross-border settlement to cut delays and costs. What specific frictions in correspondent banking are you replacing, and how did you measure time and fee reductions in pilots? Please share corridor examples, before-and-after metrics, and any unexpected bottlenecks.
We remove nested intermediaries that add screening, nostro reconciliation, and cut-off delays. Pre-validation, pre-funding, and bilateral netting give way to direct transfer and real-time receipt. Our pilots timed “request to receipt” down to the minute; settlement moved from multi-day windows to minutes, 24/7. Corridors with smaller banks saw the biggest lift, though on-ramps and off-ramps created occasional queues we tuned by staging liquidity and automating release on confirmation.
The platform keeps AML/compliance, ISO 20022 messaging, and bank confirmations intact while changing only settlement. How did you map ISO 20022 fields to on-chain events, and what reconciliation workflows bridge ledger entries with bank statements in real time?
We map payment IDs and remittance data to transaction metadata, and signatures anchor to business application headers. Status codes drive on-chain state changes and off-chain alerts. Ledger events stream into our reconciliation engine, which matches to bank statements as confirmations arrive. Any break creates a case with lineage back to the original ISO 20022 message and the on-chain hash.
Settlement finality can happen in minutes, 24/7. What constitutes “final” from a legal, operational, and technical standpoint, and how do you handle reversals, disputes, or sanctions hits discovered after funds move?
Legal finality mirrors existing settlement terms embedded in bilateral agreements and disclosures. Operationally, a transaction is final when both banks acknowledge receipt and release. Technically, we rely on chain confirmation depth plus notarized event logs. If an issue emerges post-settlement, we execute compensating transfers, freeze funds with counterparties, and file required notices.
Many smaller banks rely on correspondents today. What’s the onboarding playbook for them—wallet setup, stablecoin acquisition, compliance controls—and how long does it take from KYC to first live transaction?
We start with KYC and risk profiling, then provision wallets with role-based access. Next comes stablecoin access via approved partners, plus travel rule and sanctions integrations. We test end-to-end with low-value scenarios before go-live. The path can be rapid; the gating item is internal readiness, not the rails.
Stablecoin liquidity is critical. Which stablecoins and rails are supported at launch, how do you source and price liquidity across time zones, and what safeguards exist if liquidity dries up during a stress event?
We begin with the native stablecoin on Tempo and bank-controlled issuance where applicable. Liquidity is sourced through curated venues and bilateral lines, with automated routing to best executable. Price discovery reflects depth and fees, not just spot. In stress, we pause new sends, enable graceful reversion to traditional rails, and maintain reserve buffers.
Banks will need wallets and key management. What custody model did you choose (self-custody, qualified custodian, MPC), how are permissions segmented, and what operational controls prevent key compromise or unauthorized transfers?
We support bank-controlled custody with multi-party signing to avoid single-key risk. Permissions split initiation, approval, and release across teams. Policy engines bind limits and whitelists to each wallet. All activity is logged, and any anomaly triggers human review before funds move.
FX can occur on-chain or off-chain. Where does conversion happen in your flow, how is price discovery handled, and what are the slippage, spread, and settlement risk trade-offs across different corridors?
We let banks choose: convert before mint, on-chain between stablecoins, or off-ramp into local currency. Price discovery aggregates quotes and observable depth. On-chain gives speed but can face thin books; off-chain can tighten spreads. Each corridor has a playbook tuned to its liquidity and risk.
Compliance is non-negotiable. How do you implement sanctions screening, the travel rule, and ongoing transaction monitoring on-chain, and what thresholds trigger enhanced due diligence or manual review?
We screen counterparties and addresses pre- and post-initiation and enrich with risk data. Travel rule data rides alongside payment metadata and is validated end-to-end. Behavioral analytics flag anomalies across volume, frequency, and counterpart mapping. Escalation paths are codified, and reviews are documented for audit.
The system promises bank-grade reliability. What uptime, RPO/RTO targets, and failover paths do you commit to, and how do you gracefully degrade to traditional rails during node outages or oracle failures?
We design for continuous operations aligned with 24/7 settlement. Data replication and hot standby nodes keep RPO/RTO tight. If nodes or oracles degrade, we queue transactions and route confirmations through alternate paths. When needed, we fall back to existing rails with full trace continuity.
Bank confirmations remain part of the process. How do you synchronize on-chain settlement with off-chain confirmations, what exceptions appear most frequently, and how are breaks resolved across time, currency, and message standards?
We anchor the on-chain hash into the off-chain confirmation so both share a single reference. Common exceptions include beneficiary data mismatches and timing gaps. Our workflow reconciles by hash, amount, and timestamp across standards. If a break persists, we execute a compensating entry and notify both sides.
Treasury and accounting need clarity. How do you classify stablecoin holdings on the balance sheet, manage intraday liquidity and cutoff times, and reflect unrealized FX or basis risk in risk reports?
Stablecoin balances are treated as cash equivalents or restricted cash per policy. Intraday liquidity is ring-fenced and monitored against projected flows. Cutoffs are replaced with rolling windows, but we publish internal snapshots. Basis and FX exposures are measured and hedged where appropriate, then reported alongside cash.
Privacy and transparency often collide. What data is visible on-chain, what stays off-chain, and how do you balance regulator visibility with client confidentiality, especially for high-value corporate flows?
Amounts and transaction hashes live on-chain; sensitive PII stays off-chain. We use controlled disclosure to share proofs with regulators on request. High-value flows get extra masking and layered access. The result is verifiable settlement without exposing client secrets.
Interoperability matters for network effects. How will you connect with other chains, stablecoins, or CBDC pilots, and what standards or bridges are you betting on to avoid fragmentation and vendor lock-in?
We back standard message schemas and canonical references to keep portability high. Gateways federate identity and travel rule data across chains. For CBDCs, we plan adapters that respect central bank rules while preserving traceability. The goal is optionality, not lock-in.
Governance and trust underpin adoption. What assurances do banks receive about protocol upgrades, validator neutrality, and change management, and how do you handle incident disclosure and auditability?
Upgrades follow a staged review with auditable releases and rollback plans. Validators operate under neutrality covenants and separation of duties. Change windows and impact notes are pre-communicated. Any incident is disclosed with timelines, fixes, and artifacts for independent audit.
Go-to-market requires credible wins. Which corridors, partner banks, and customer segments are first, what KPIs define success in year one, and how will you scale liquidity, compliance operations, and support as volumes grow?
We start where small-bank correspondent pain is highest, then expand as wallets and stablecoin access deepen. Early segments include fintech partners already using FDIC-insured deposits at scale. Success looks like live corridors running in minutes, measurable cost cuts, and clean audits. As volumes grow, we add liquidity lines, analyst capacity, and 24/7 support to match the rails.
What is your forecast for bank-led cross-border stablecoin settlement over the next three years—in terms of volumes, corridors, regulatory clarity, and the tipping points that move this from pilot to mainstream?
I expect steady expansion from a few corridors to a broad set as more banks adopt wallets and stablecoins. Regulatory clarity will sharpen around custody, disclosures, and reporting, guided by bank-grade controls. The tipping point is when confirmations, ISO 20022 alignment, and 24/7 settlement in minutes become table stakes. Once a handful of sizable institutions follow Coastal Bank’s lead, momentum will carry the rest.
