Stablecoins speedrun BaaS — and its dangers

Welcome back to Fintech Takes for a special bonus episode of Fintech Recap with Jason Mikula; Latin American sanctions evasion expert and author of a splendid ~5,500 word investigation on Kontigo that demands its own episode.

If you haven’t yet read Jason’s piece, “Kontigo: Y Combinator's Venezuelan Sanctions Evasion Startup” in Fintech Business News Weekly – the spine of this episode – you should (full link below).

This episode is a deep dive into Kontigo, a crypto‑fintech startup operating in Venezuela that marketed USDC off‑ramps and debit cards, raised money from Coinbase (among others!), and leveraged U.S. financial infrastructure (like JPMorgan Chase, Checkbook, Rain, Bridge, Lead Bank, and Stripe) … while operating in a heavily sanctioned environment.

The rise and fall of Kontigo raises urgent questions about accountability, compliance, and the risks embedded in stablecoin rails. 

We get into:

• The foreign exchange arbitrage that made the model profitable

• Why stablecoins are “speed-running BaaS” (but worse)

• How product market fit in stablecoins can be code for money laundering, sanctions evasion, or financial crime

• And the surreal online behavior of the CEO (shirtless hype videos included)

Plus, in our Can’t Let It Go corner: agave spirit startups, Kontigo’s logo that obviously nods at the Petro (Venezuela's failed oil backed cryptocurrency), and our favorite quote of 2026 so far!

This episode is brought to you by Plaid. 

Plaid helps lenders approve more creditworthy borrowers without taking on more risk, combining real-time cash flow data with behavioral insights. It’s a fast, familiar experience people trust, and that actually converts. Learn more at www.plaid.com/ftt

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Read Jason’s “Kontigo: Y Combinator's Venezuelan Sanctions Evasion Startup” here: 

https://fintechbusinessweekly.substack.com/p/kontigo-ycombinators-venezuela-sanctions

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Newsletter: https://fintechbusinessweekly.substack.com/

LinkedIn: https://www.linkedin.com/in/jasonmikula/

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