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Programmable Money Is the Next Banking Stack

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  Published in Business and Finance on Monday, December 22nd 2025 at 3:33 GMT by Impacts

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Programmable Money Is the Next Banking Stack: Key Takeaways from Gleb Kurovskiy (Luminary)

The world of banking is on the cusp of a dramatic transformation, and one of the most powerful catalysts for that change is “programmable money.” In a recent interview published on TechBullion, Gleb Kurovskiy, founder and CEO of Luminary, explains why this new paradigm is poised to become the backbone of tomorrow’s financial ecosystem. Drawing on his background in both traditional banking and emerging blockchain technology, Kurovskiy offers a comprehensive look at what programmable money is, why it matters, and how Luminary is positioning itself to become a key enabler for banks that want to stay ahead of the curve.

1. What Exactly Is “Programmable Money”?

At its core, programmable money refers to digital assets that can be encoded with rules and logic that govern how they move, who can own them, and under what conditions they can be spent or transferred. This is in stark contrast to legacy fiat currencies, which are largely passive and require manual processes for compliance, settlement, and risk management.

Kurovskiy explains that programmable money typically runs on distributed ledger technology (DLT) and smart‑contract platforms such as Ethereum, Solana, or Polygon, but the concept can also be adapted to permissioned networks that banks are already familiar with. By embedding business logic directly into the asset’s code, banks can automate KYC/AML checks, enforce transaction limits, trigger notifications, and even create automated investment strategies—all in real time and with end‑to‑end auditability.

The interview cites the World Economic Forum’s recent report on “Programmable Money and the Future of Banking” (link provided in the article) which outlines a three‑phase vision: (1) the creation of stable‑coin‑like instruments that are fully regulated, (2) the integration of those instruments into existing payment systems, and (3) the use of programmable money as a foundation for complex financial products such as derivatives and asset‑backed tokens.

2. Why Programmable Money Is the “Next Banking Stack”

Kurovskiy argues that the current banking stack—composed of core banking systems, AML/KYC modules, SWIFT, and the occasional API gateway—was designed for a world that ran on paper and batch processing. In a digital‑first age, those layers are becoming bottlenecks.

Key points highlighted in the interview include:

Kurovskiy underscores that programmable money isn’t just a technical upgrade; it’s a strategic shift that allows banks to become “financial super‑apps” that can offer on‑demand services—everything from instant micro‑loans to automated portfolio rebalancing—while remaining fully compliant.

3. Luminary’s Role in the Ecosystem

Luminary, as described by Kurovskiy, is a “full‑stack programmable money platform” that bridges the gap between banks’ legacy infrastructure and the next generation of blockchain‑based services. The company’s architecture is modular, consisting of:

1. On‑chain ledger – A permissioned blockchain that offers the transparency and immutability of public networks but retains the privacy controls required by regulators.
2. Off‑chain database – Stores user identities, compliance data, and transaction metadata, ensuring that banks can maintain their internal control frameworks.
3. API Gateway – Exposes a set of REST/GraphQL endpoints that allow traditional banking APIs to interact with the programmable layer without rewriting core systems.
4. Compliance Engine – A rule‑engine that enforces KYC/AML, sanctions screening, and transaction limits in real time.

The interview notes that Luminary is not building a replacement for a bank’s core system; instead, it acts as a “plug‑and‑play” add‑on that can be rolled out incrementally. For instance, a bank could first use Luminary to issue a regulated stable‑coin for cross‑border payments while keeping its legacy ledger for other operations.

4. Real‑World Use Cases Explored

Kurovskiy highlights several compelling use cases that banks are already experimenting with:

• Regulated Stable‑Coins for International Remittances – By tokenising fiat, banks can bypass correspondent banks and reduce remittance costs by up to 70 % (source: World Bank remittance statistics).
• Tokenised Securities – Fractional ownership of bonds or real‑estate assets becomes feasible, allowing broader investor participation and more efficient secondary markets.
• Automated Compliance – Every transaction triggers a compliance check that can be audited on‑chain, dramatically cutting down audit cycle times.
• Real‑Time Settlement – A bank can settle payments in milliseconds, eliminating the need for the traditional batch‑settlement model that takes days.

The article provides a link to a Luminary whitepaper (available on their website) that delves deeper into the technical specifications of their stable‑coin implementation, including token standards (ERC‑20 and a custom permissioned equivalent).

5. Regulatory Landscape and Kurovskiy’s Perspective

The interview acknowledges that regulation remains a significant hurdle. Kurovskiy notes that most regulators are still working through how to classify programmable money—whether as a security, a money‑service business (MSB), or a new category altogether. In the U.S., the SEC is actively monitoring stable‑coin issuers, while the European Central Bank (ECB) is exploring a Digital Euro that could incorporate programmable features.

To navigate this uncertainty, Luminary has built an “embedded compliance” layer that can be updated as regulations evolve. The company is in talks with the Financial Conduct Authority (FCA) and the Monetary Authority of Singapore (MAS) to ensure that its platform meets the highest standards.

Kurovskiy also stresses the importance of a “regulatory sandbox” approach, where banks can pilot programmable money products in a controlled environment before rolling them out to the public.

6. Roadmap and Strategic Partnerships

Luminary’s short‑term roadmap, as outlined in the interview, includes:

• Q3 2025: Pilot program with a mid‑size European bank focusing on cross‑border payments.
• Q1 2026: Public beta release of the compliance engine for asset‑tokenisation use cases.
• Mid‑2026: Expansion into Asia‑Pacific markets through partnerships with local payment networks.

Strategic partners already include Ripple (for cross‑border settlement protocols), Coinbase (for regulatory insights), and several European banks that are open to testing tokenised trade finance solutions.

7. Takeaway for Banks and Fintechs

Kurovskiy wraps up the interview by emphasizing that programmable money is not a “nice‑to‑have” feature—it’s becoming a necessity for any institution that wants to remain competitive in an era where fintechs and challenger banks are delivering frictionless, instant services. He advises banks to start small, leverage modular platforms like Luminary, and maintain close collaboration with regulators to ensure compliance.

In a closing quote, Kurovskiy states:

“We’re not just adding a new layer on top of your legacy system; we’re re‑architecting how value moves in the financial world. The next generation of banking won’t be built on paper; it will be built on code.”

Final Thoughts

The TechBullion interview provides a clear, forward‑looking narrative about programmable money and its pivotal role in reshaping the banking stack. Gleb Kurovskiy’s insights into Luminary’s architecture, use cases, and regulatory strategy make a compelling case that programmable money is the natural evolution of finance. For banks, the message is simple: adapt now or risk becoming obsolete. For fintechs, it signals a golden opportunity to build next‑gen services that can operate at scale, in real time, and with built‑in compliance.

To read the full interview and explore Luminary’s product whitepaper, visit the TechBullion link and the company’s official website (both are referenced within the article).