Akshay Naheta, the SoftBank Group executive behind the "Nasdaq whale" moniker, is making a bold bet on disrupting the global payment infrastructure with his Zug, Switzerland-based startup, Distributed Technologies Research (DTR). Naheta's startup is attempting to bridge the gap between traditional banking and blockchain technology, joining an army of companies trying to modernize the global payments infrastructure.

DTR's core technology, AmalgamOS, essentially connects banks with blockchain networks, allowing businesses to integrate payment capabilities while maintaining compliance with local regulations. The system can handle everything from merchant payments to treasury management, supporting both traditional currencies and major stablecoins across 48 countries. Naheta claims that DTR's technology can eliminate various payment inefficiencies, including transfer costs, interchange fees, foreign exchange conversion charges, and settlement delays.

The startup has built an "international orchestration network" that automatically routes transactions through either traditional banking or blockchain rails, depending on which path offers the optimal combination of speed and cost. With connections to 12,000 banks in Europe, a business integrating DTR's APIs can let its customers initiate transfers directly through banking apps. Naheta's interest in payment infrastructure stems from SoftBank's acquisition of Fortress Investment Group in 2017, which put about $20 million worth of Bitcoin on SoftBank's balance sheet.

As he studied the underlying blockchain technology, Naheta saw an opportunity to apply his background in wireless communications to payment networks. He began assembling what he hoped would be DTR's founding team, including his undergraduate thesis advisor, Pramod Viswanath, an expert in wireless communications, and Sreeram Kannan, who would later start Eigen Layer. The team saw blockchain as a peer-to-peer communications network at heart, one that could apply decades of research in wireless systems to revolutionize payments.

DTR's push into payments infrastructure comes at a seemingly opportune time. Visa and Mastercard, which charge 2-3% swipe fees, are facing mounting scrutiny over their duopoly, and the U.S.' proposed Credit Card Competition Act could require banks to offer merchants alternatives to the dominant networks. Early customers say DTR's infrastructure fills a significant gap, with Philip Lord of Oobit, a crypto wallet startup, stating that the system allowed his company to move money from a crypto wallet to a U.K. bank account on Christmas Day in under 30 seconds – a transfer that would have taken days through traditional channels.

Naheta's previous forays into the payments sector, including SoftBank's investment in Wirecard, which later collapsed, have influenced DTR's emphasis on compliance and institutional credibility. The company's growth strategy is measured, with Naheta aiming to increase headcount to 60 people by the second quarter while maintaining free-cash-flow positivity.

DTR faces competition on multiple fronts, including Wise, Ripple, traditional banks, and Stripe's recent $1 billion acquisition of Bridge. However, Naheta sees an opening in serving businesses caught between these worlds, particularly digital nomads, creator economy platforms, and companies operating across emerging markets. He argues that banks are not equipped to run Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) checks at the small level required by these businesses.

The payments industry's high margins and network effects make it notoriously difficult to disrupt. PayPal commands a $70 billion market cap, while Visa and Mastercard together are worth over $1 trillion. Naheta believes that the retail customer is getting screwed on payments, and it's not the fault of the banks, which are plugged into legacy systems and find it hard to adapt.

Lord of Oobit agrees that the space remains wide open, pointing out that until recently, the only option for businesses needing to move between crypto and traditional banking systems was to "go to like an OTC shop and pay probably like 1 to 3% to get it transferred." DTR's solution is "a block faster" than alternatives, and its emphasis on compliance and institutional credibility sets it apart from competitors.

As the global payments infrastructure continues to evolve, DTR's bold bet on blockchain technology could potentially disrupt the status quo and bring about much-needed change. With Naheta's track record of making ambitious bets on disruption, it will be interesting to see how DTR's vision for the future of payments unfolds.