Disrupting the Telecom Industry with Stablecoins
According to McKinsey figures cited by Iris, global mobile data traffic has been on a steady rise, growing more than 50% annually between 2012 and 2025. However, operator service revenue has only seen a minimal increase of less than 1% per year.
Telecom operators possess valuable assets that financial apps often struggle to acquire: customers, verified identities, and distribution channels. This is especially beneficial in emerging markets where operators play a crucial role in everyday activities.
John Nahas, Chief Business Officer at Ava Labs, highlighted the significance of telecom operators in certain markets, stating that in countries like Bolivia, the mobile carrier serves as the primary platform for various services.
Given this scenario, Iris plans to focus its initial expansion efforts on Latin America, Africa, and Asia rather than the U.S., as these regions present greater opportunities for growth, according to Nahas.
VIVA, a telecom company, has already experienced positive results by implementing a super-app product powered by Iris. The product has led to a 33% reduction in customer churn and a 35% increase in customer lifetime value.
Nahas emphasized the tangible benefits of such innovations, stating that real-world case studies are needed to further validate the model’s success.
Transforming Settlements with Stablecoins
Iris operates on the Avalanche Layer 1 network, enabling it to have full control over settlement, operational, and compliance requirements. The settlement asset, USDi, provides stability to transactions while allowing VIVA to hold operating reserves in U.S. dollars.
For VIVA, utilizing a U.S. dollar stablecoin for settlements offers the flexibility to maintain operating reserves in a stable currency, especially crucial in markets with volatile local currencies.
