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Boris Bohrer-Bilowitzki

Verified Finance in Action: Building Next-Gen PayFi Infrastructure

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• 10 min read
Verified Finance in Action: Building Next-Gen PayFi Infrastructure

In this recap of the latest Kraken x Concordium Space (October 24, 2025), Boris Bohrer-Bilowitzki and Peter from Kraken Business Development explore the evolving landscape of payments, privacy, and compliance, and how PayFi is shaping the next chapter of digital finance.

The discussion spans from legacy payment inefficiencies to Concordium’s identity-powered model, StablR’s stablecoin integration, and the shared vision of programmable, privacy-preserving financial infrastructure.

What unfolds is a revealing exchange that hints at a deeper convergence between Kraken and Concordium, as both move toward a shared vision of compliance-anchored, real-world finance in the PayFi era.

Read on for a section-by-section breakdown of the conversation, capturing every key insight and connection as it happened.

1 Introductions and Old Connections

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1 Introductions and Old Connections
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  • Boris and Peter reconnect after several years; first met around 2018–2019.
  • Both recall the “early days” of the crypto industry with nostalgia and humor.
  • Tone set as informal, friendly, and conversational, more of a dialogue than an interview.
  • Boris notes that he’s usually the one being questioned but this time it’ll be a two-way discussion.
  • Conversation framed around exploring the current crypto landscape with a focus on PayFi and Concordium’s direction.
  • Comments

2. Peter’s Introduction: Role and Kraken’s Mission

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2 Peters Introduction Role and Krakens Mission
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  • Peter serves as Director of Asset Listings (BD team) at Kraken, with ~7 years at the company.
    • Previously part of Institutional Sales, where he first met Boris.
  • Leads the business development side of listings, engaging with projects and overseeing evaluation.
  • Describes Kraken as one of the world’s most trusted digital asset platforms.
    • Founded in 2011, “almost as old as Bitcoin.”
    • Serves millions of users globally.
  • Core mission: bring crypto to the masses through secure, regulated, and transparent services.
  • Focus areas include trading, custody, and payments, underpinned by regulatory compliance.
  • Boris notes Kraken was the first exchange he joined back in 2017 and praises it as “one of the good ones.”
  • Comments

3. Boris’s Introduction and Concordium’s Vision

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3 Boriss Introduction and Concordiums Vision
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  • CEO of Concordium, a layer-1 blockchain.
  • Focused on security, compliance readiness, and scalable on-chain finance, referred to as PayFi.
  • Mentions Concordium’s concept of “smart money.”
  • Personally feels that while the crypto-native side has achieved great innovation, it still hasn’t been integrated into everyday life.
  • Notes that regulation and KYC are unavoidable, even Kraken requires KYC.
  • Argues that privacy-preserving anonymity should be celebrated and built around.
  • Explains that Concordium has identity built into the base layer, allowing interaction within an ecosystem in a fully privacy-preserving way.
  • Concludes that they’ll go into this in more detail later.
  • Comments

4. The State of Crypto Today

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4 The State of Crypto Today
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  • Boris invites Peter’s view on the current state of the crypto industry, referencing Satoshi’s vision of “peer-to-peer electronic cash.”
  • Peter believes the parabolic phase of global adoption has begun.
  • Acknowledges ongoing speculative behavior and short-term profit seekers, but says this exists in every industry.
  • Emphasizes Kraken’s commitment to being in it for the long run, strengthened under new leadership.
  • Notes major improvements in product delivery and responsiveness to client needs.
  • Sees a new era emerging, aided by greater regulatory clarity following changes in U.S. administration.
  • Highlights strong on-chain growth and innovation, with many promising projects launching.
  • Confirms that payments remain one of Kraken’s core focus areas going forward.

5. Boris on the Maturity Gap and Missing Real-World Use

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5 Boris on the Maturity Gap and Missing Real World Use
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  • Acknowledges ongoing innovation and speculative trends such as meme coins, which work well for exchanges but don’t move the industry forward.
  • Argues that the vision of full DeFi and total anonymity is unrealistic without intermediate steps.
  • Notes renewed attention to tokenization projects like Canton, but says similar “permissioned DeFi” ideas already faced limits years ago.
  • Believes the payments sector is far more understandable for mainstream users and a better entry point for adoption.
  • Shares a personal anecdote: when he asks people in restaurants if they own crypto, most still say no, showing how early the space remains.
  • Stresses that adoption only comes from solving real problems: reducing costs, improving efficiency, and delivering speed.
  • Notes that traditional finance already offers fast trading, but settlement processes remain inefficient — an area blockchain could improve.
  • Expresses skepticism toward Ethereum’s scalability, citing congestion and high fees.
  • Argues for a different kind of infrastructure to support real-world commerce, particularly e-commerce, cross-border payments, and trade finance.
  • Concludes that the potential market outside the crypto-native world (real-world finance) is far larger and largely untapped.

6. The Payment Frontier and Kraken’s View on Privacy

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6 The Payment Frontier and Krakens View on Privacy
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  • Boris shifts focus to the payments landscape, praising Kraken for its responsiveness in listing Concordium.
  • Asks Peter how Kraken views current developments in digital payments and what problems they aim to solve.
  • Peter says Kraken is open to supporting solid, well-built projects, aligning with its standards for security, compliance, and market quality.
  • Notes a growing wave of innovation in the payments niche, particularly around privacy-focused solutions.
  • Stresses that privacy preservation and anonymity are not the same — privacy is about user protection, not secrecy.
  • Believes the industry is right to emphasize privacy-preserving payments, since users shouldn’t have to expose their full balance for every transaction.
  • Concludes that this trend toward responsible privacy is a positive development Kraken.
  • Comments

7. Boris on Pain Points, Regulation, and Over-Compliance

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7 Boris on Pain Points Regulation and Over Compliance
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  • Moves from privacy concerns to the real-world user pain caused by excessive compliance requirements.
  • Describes how accessing basic online services now involves repetitive onboarding, photo submissions, and endless verification steps.
  • Calls the process frustrating and unnecessary, saying regulation has become excessive rather than insufficient.
  • Acknowledges that some regulation is essential, especially for protecting minors online (referencing the Online Safety Act).
  • Frames the issue as a need for balance — ensuring accountability and safety without creating needless friction for legitimate users.
  • Comments

8. The Real-World Payment Mess vs Blockchain Promise

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8 The Real World Payment Mess vs Blockchain Promise
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  • Describes traditional payment rails such as SWIFT and SEPA as outdated but functional — the system works, yet the process behind it is chaotic.
  • Notes that the public is unaware of the immense complexity and inefficiency behind seemingly simple transactions.
  • Criticizes the “mess behind the scenes” required to reach final settlement in traditional finance.
  • States his vision that the blockchain world should reach the same level of usability — people shouldn’t need to understand it to benefit from it.
  • Reiterates his core belief: “Blockchain is not something that should be understood; it’s something that should be used.”
  • Acknowledges that even after a year of deep involvement in payments, the traditional system’s inner workings remain opaque, whereas blockchain offers greater clarity and potential simplicity.
  • Concludes that the goal is not to reinvent everyday payments (e.g., at Starbucks) but to simplify the infrastructure behind them through blockchain’s transparency and efficiency.
  • Comments

9. Concordium’s Identity Layer and Real-World Use Cases

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9 Concordiums Identity Layer and Real World Use Cases
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  • Real issue is data exposure, not wallet balances.
  • Users shouldn’t have passport copies stored across hundreds of data centers.
  • Example: online alcohol retailer using Concordium to verify age without sharing ID documents.
  • Target sectors: gambling, gaming, adult content, alcohol sales.
  • Users can prove eligibility without revealing personal details such as address.
  • Concordium’s goal: usable, privacy-preserving solutions through simple interfaces and strong partners (incl. Kraken).
  • Argues total anonymity is unrealistic; balance between privacy and accountability is required.
  • Warns that without this approach, crypto remains stuck in a crypto-native bubble.
  • Comments

10. Kraken’s Broader Infrastructure Role

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10 Krakens Broader Infrastructure Role
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  • Started as exchange.
  • Added Kraken Futures early; still active.
  • Goal: one-stop shop for personal finance.
  • Kraken Payments app: instant, fee-free transfers between app users.
  • X-stocks: tokenized stock/equity tokens.
  • Qualified custody available.
  • Building multiple products while maintaining the core exchange.
  • Listings: simple application, internal evaluation, legal and compliance sign-off.
  • Open to builders and communities aligned with Kraken’s vision.

11. StablR and the Stablecoin Layer

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11 StablR and the Stablecoin Layer
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  • Kraken invests in core industry infrastructure, including StablR.
  • Sees strong opportunity in the stablecoin segment.
  • Lists many stablecoins and partners on USDG, its main stablecoin initiative.
  • Boris: easy to launch on Ethereum, Solana, or Tron, but Concordium solves real compliance needs.
  • StablR, EURR, and USDR aim to enter the regulated finance space using Concordium.
  • Concordium built mainly for issuers, with stablecoins as first focus.
  • Supports both yield-bearing and non-yield-bearing models (synthetic or tokenized MMFs).
  • Uptake stronger than expected — infrastructure and product suite proving effective.
  • Leads directly into the next topic: PayFi.
  • Comments

12. Introduction to PayFi and Its Philosophy

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12 Introduction to PayFi and Its Philosophy
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  • PayFi described as the next DeFi — designed for faster adoption and reaching beyond crypto-native users.
  • Defined as programmable, verified, and compliance-ready finance.
  • Enables instant and transparent money movement within a regulatory framework while remaining privacy-preserving.
  • Builds on Concordium’s Verify-and-Pay vertical and Verify-Access use cases (e.g., age verification).
  • Stablecoins seen as the core building block of PayFi — act as programmable money with global reach and easy integration.
  • Significant uptake reported across key verticals; announcements expected in the coming months.
  • Notes strong product-market fit — solving problems merchants have long faced.
  • Identifies smart-contract custody risk as a barrier to adoption.
  • Emphasizes custody should never sit in smart contracts; builders need protocol-level tools.
  • Concordium enables native issuance (PLTs) directly on-chain — not ERC-based — as done by StablR.
  • Goal: make services easier, faster, and cheaper for both users and providers — driving PayFi adoption now happening at lightspeed.
  • Comments

13. Peter’s PayFi Reaction: Compliance and Transparency as Catalysts

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13 Peters Reaction Compliance and Transparency as Catalysts
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  • StablR’s move from an ERC-based model to building on Concordium seen as a major improvement.
  • Removes third-party contract reliance, reducing exploit risk.
  • Concordium provides the transparency needed for stablecoin and PayFi applications.
  • The built-in compliance layer ensures KYC/AML standards, which Peter calls unavoidable but essential.
  • Kraken supports this model and sees itself as a bridge between Concordium, StablR, and the wider ecosystem.
  • Comments

14. What PayFi Unlocks for Kraken

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14 What PayFi Unlocks for Kraken
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  • Peter: PayFi enables faster and cheaper rails than traditional systems.
  • Especially valuable in regions with limited access to reliable payment infrastructure.
  • Built-in verification and compliance open new possibilities for merchants and institutions.
  • Allows faster settlements compared to today’s traditional methods.
  • Describes PayFi as the next evolution of payments.
  • Boris: fully agrees — emphasizes that real adoption is now within short timeframes.
  • Notes increasing recognition from new partners who see Concordium’s infrastructure as ready to use.
  • Reiterates that blockchain is not to be understood but used, with focus on practical, real-world use cases.
  • Stresses that growth must expand beyond the crypto-native sphere while remaining true to its roots.
  • Comments

15. Adoption, Tooling, and Usability Gaps

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15 Adoption Tooling and Usability Gaps
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  • Example: Boris's father needed months to learn Apple Pay.
  • Same challenge applies to many non-technical users.
  • The DeGen crowd understands wallets and DApps, but most people do not.
  • Many still fear “breaking the internet.”
  • Adoption barrier lies in usability, not technology.
  • Tooling and interface simplicity are the real gaps.
  • Ledger partnership makes hardware wallets usable for everyday interactions through Concordium’s tech stack.
  • Wallets remain central to holding and using digital assets.
  • Kraken seen as part of the infrastructure enabling smoother interaction.
  • Concordium currently first with privacy-preserving cryptography at this level; several others attempting similar solutions.
  • Key goal: make cryptography simple, understandable, and adoptable for normal users.
  • Comments

16. What’s Next for Kraken and Concordium

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16 Closing Remarks and Future Outlook 1
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  • Peter outlines Kraken’s next steps:
    • Expanding on-chain operations and developing their own chain (INK).
    • Recently launched a white-labeled Aave protocol.
    • Preparing for a potential public stock listing (IPO) in 2026.
    • Strong focus on PayFi as an emerging narrative.
  • Boris jokes about wanting Peter to shout “Concordium is the best,” but notes Kraken must remain neutral as an exchange.
  • Confirms Concordium’s strategy:
    • Doubling down on “Verify and Pay” to become the #1 PayFi player.
    • Mentions Concordium trending first on Google for “PayFi.”
    • Notes an active hackathon with external developers building around Verify and Pay.
    • Highlights strong developer activity and focus on merchant tools for compliant financial products.
    • Emphasis on age verification and payments across gambling, adult content, and similar verticals.
  • Boris underlines different but complementary roles:
    • Kraken focuses on the infrastructure layer.
    • Concordium delivers the code and compliance layer enabling verified and programmable finance.
  • Describes vision where users can trade and then pay for real-world expenses directly through PayFi.
  • Hints at deeper collaboration ahead, saying there are “a couple of things in the making.”
  • Final message: make verified payments as easy and trusted as traditional ones — but faster, cheaper, and fully privacy-preserving.
  • Comments

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