Christian Thompson, Managing Director of the Sui Foundation, stated that bipartisan U.S. stablecoin legislation will be a powerful mechanism for driving capital formation and retail onboarding into Web3 ecosystems.

Speaking with Benzinga on the sidelines of Sui basecamp in Dubai, Thompson, a former Meta Deputy Chief Information Security Officer and Libra/Diem project contributor, emphasized stablecoins' role in enabling fast, inexpensive, and reliable cross-border transactions.

Christian Thompson, Managing Director of the Sui Foundation, believes bipartisan U.S. legislation on stablecoins will be a powerful driver of capital formation and retail user onboarding into Web3 ecosystems.

Speaking with Benzinga on the sidelines of Sui basecamp in Dubai, Thompson, a former Meta (NASDAQ:META) Deputy Chief Information Security Officer and Libra/Diem project contributor, highlighted how stablecoins facilitate fast, inexpensive, and reliable cross-border transactions.

“It’s a powerful method to bring people into Web3 and all the benefits that it has,” Thompson said, breaking down how stablecoins remove barriers between brokers and makers across different types of capital and the varying regulations that define them.

These advantages are particularly relevant in developing nations, where institutions and individuals face steeper learning curves for navigating new financial technologies.

“Anytime you’re sending money between two people from one place to another, it’s super fast, super reliable, [and] very inexpensive to do,” he said, tying this efficiency to the broader implications for global commerce and financial inclusion.

Thompson’s comments come as the U.S. Senate is set to vote on the GENIUS Act by May 26. This bill restricts stablecoin issuance to permitted issuers and mandates a 1:1 backing with short-term Treasury securities.

Meanwhile, the House is advancing the companion STABLE Act, and both bills have secured bipartisan support to establish a federal regulatory framework for stablecoins.

From Meta To The Sui Foundation

Drawing on his experience at Meta, where he oversaw a team of 1,000 cybersecurity professionals and contributed to the development of the Novi digital wallet, Thompson emphasized the Sui Foundation’s deep focus on security and scalability.

“Security is embedded in everything that we’ve built,” he said, mentioning that three out of the five foundation co-founders have security backgrounds, which has shaped the architecture of the PoS blockchain to support secure Web3 applications.

He also touched upon some of Sui’s technological advancements, such as the Walrus decentralized storage solution, which is designed for optimal performance and efficiency in handling large amounts of data.

This technology is crucial for supporting institutional and retail adoption of Web3 applications at scale. Additionally, Thompson spoke about Seal, a new cryptographic primitive that provides a standardized method for defining and enforcing access control to blockchain applications.

This technology is set to be deployed in the upcoming Sealeum upgrade of the Sui chain.

Predict ‘Watershed Moment’ For RWA Tokenization

Looking ahead, Thompson predicted a “watershed moment” for real-world asset (RWA) tokenization, largely driven by regulatory clarity.

He noted how stablecoins could bring greater transparency to sectors like real estate, where tokenized property titles could reduce ambiguity in ownership and encumbrances.

“You get whole new asset classes that become available through RWA,” he said, adding that public understanding of blockchain technology will be key to driving adoption.

In the meantime, the Sui Foundation is working on initiatives like zero-knowledge (ZK) login, which will allow users to easily access Web3 services using their Google or Apple IDs without needing to share any personal data.

This technology streamlines the user experience and makes it more accessible to mainstream users.

“ZK Login is the solution ultimately,” he said, as it closely resembles familiar Web2 authentication methods, making it a natural transition point for retail users.