Stablecoins: From Niche to Financial Mainstay

Stablecoins are blockchain-based tokens pegged to fiat currencies like the U.S. dollar. With over $200 billion² in global supply (~1% of USD), stablecoins’ utility goes beyond digital currency exchanges; it’s entering everyday commerce and institutional finance.

In 2022, stablecoins were largely unregulated and viewed skeptically after events like the algorithmic stablecoin TerraUSD collapse. In 2025, however, regulatory clarity is emerging. The EU’s Markets in Crypto-Assets (MiCA) law now governs stablecoin issuers, and U.S. lawmakers’ bipartisan effort, the GENIUS Act, establishes federal oversight. With tighter regulations comes greater confidence. For example, 88% of payments executives say that regulation is no longer a barrier, and nearly half of the same companies already use stablecoins for transactions³.

Real-world use is growing. From high remittance corridors like Guatemala to cross-border B2B payments, stablecoins are becoming a trusted, low-cost alternative for moving money.

Why Stablecoins Matter

Stablecoins combine the trust of fiat with the efficiency of crypto, offering several key advantages:

• Instant, 24/7 Settlements: Banks using Circle’s USDC can settle payments instantly, even outside business hours. Banking software provider Finastra integrated Circle’s USDC so that banks could settle cross-border payments instantly in stablecoin form, even if both sender and receiver ultimately use local fiat⁴.
• Lower Costs: Transfers can cost pennies, compared to $25–$50 for traditional wires⁵.
• Global Reach: Merchants in unstable economies can transact in dollars and reliably hold value in USD or Euro without needing U.S. bank accounts.
• Programmability: Smart contracts with logical conditions enable automated payments, micropayments, escrow, and revenue sharing.
• Stability: Coins like USDC and PYUSD are backed 1:1 by cash or treasuries, offering price stability. This backing, convertibility, and regular reserve audits mean users don’t have to worry about wild price swings.

Impact Across the Payments Ecosystem

Stablecoins are reshaping roles across the value chain:

• Commercial Banks: Some are issuing their own coins (e.g., JPM Coin) for interbank settlements and to potentially hedge against deposit outflows, while others await regulatory clarity. Finastra allows banks to route payments via USDC on the backend⁴.
• Card Networks: Visa and Mastercard are becoming ‘stablecoin-friendly’, offering fraud protection and global reach.
  • Mastercard has partnered with various entities to develop crypto wallet standards, like Crypto Credential, and launched pilot programs for stablecoin use. In 2025, Mastercard teamed up with MoonPay to let users link a stablecoin-funded digital wallet to their Mastercard⁶ enabling stablecoin spend.
  • In April 2025, Visa announced a partnership with Bridge (a Stripe-acquired crypto platform) to enable fintech developers worldwide to issue Visa-branded cards with “off-ramp” conversion from stablecoin to traditional currency³.
• Processors: Firms like Fiserv and Circle are piloting stablecoin settlements to speed up merchant payouts in preferred digital or local fiat.
• Fintechs: Stripe and PayPal are embedding stablecoins into their platforms, expanding reach and unlocking new revenue streams. While still in preview mode, Stripe announced Stablecoin Financial Accounts for businesses in 100+ countries, facilitating seamless transactions³. Shopify allows merchants to accept crypto (including stablecoins) via integrations. These moves are indicative of merchant demand for crypto payment options.

The Road Ahead

In the evolving hybrid monetary system, the coexistence of digital and traditional fiat currencies is reshaping how value is stored, moved, and accessed. Key trends include:

• Mainstream Adoption: Stablecoins may become ubiquitous through familiar apps and cards.
  Decentralized Access to Capital: Small businesses can access working capital, settle payments, and manage liquidity without relying on intermediaries.
• CBDC Convergence: Stablecoins may coexist with Central Bank Digital Currencies, which are government-backed digital currencies recognized as legal tender.
• Revenue Reshuffling: Lower fees and new float income models could disrupt traditional payment economics.
• Standardized Infrastructure: Interoperability across coins, blockchains, and traditional financial systems is on the horizon.
• Risk Management: Transparency, cybersecurity, and regulatory compliance are critical.

Preparing for a Stablecoin-Powered Future: Recommendations for Companies

Is stablecoin adoption inevitable? The momentum suggests yes. Here’s a strategic playbook to prepare:

• Educate and Strategize Internally – Build internal foundational knowledge
  • Form cross-functional task forces to explore stablecoin implications. Assess best- and worst-case scenarios. For example, what if a tech giant’s issued stablecoin becomes a dominant payment method? Treat this as a strategic evolution, not a side project.
• Engage with Regulation Proactively – Don’t wait, participate
  • Join industry bodies like ETA to help shape sensible rules. Track global regulations (e.g., MiCA in the EU and FSMA in the UK) and prepare to exceed minimum standards. Voluntary audits, strict KYC, and reserve transparency can position your company as a trusted player.
• Start with Small Experiments – Run pilots
  • Try paying a supplier or merchant in stablecoin. Fintechs can test “pay with stablecoin” features. Before scaling up, these trials help uncover practical issues — such as custody, accounting, and blockchain monitoring.
• Partner with Infrastructure Providers – Leverage the Crypto Ecosystem
  • Firms like Fireblocks, BitGo, Circle, and Zero Hash offer secure wallets, APIs, and compliance tools. Zero Hash enables businesses to embed stablecoin functionality, like custody and settlement, without needing direct crypto licensing. These partnerships accelerate adoption, reduce risk, and help companies focus on innovation while navigating the digital payments landscape.
• Upgrade Technology and Skills – Assess your tech stack
  • Is your stack able to handle blockchain transactions? Invest in cybersecurity, such as multi-signature wallets, hardware security modules, and robust controls, which are essential. Hire or train talent in blockchain development and digital asset risk management.
• Prepare Customers and Merchants – Educate users
  • Emphasize safety, simplicity, and benefits. The user experience must match or exceed traditional methods to drive adoption.
• Scenario Planning – Assume it’s inevitable
  • Plan for a future where stablecoins are as common as credit or debit transactions. Payments companies should reassess their market position. Processors may shift to analytics and financing, while banks may become digital asset custodians. Build a roadmap that treats stablecoins as core infrastructure.

Final Thoughts

Stablecoins are not just a trend but a fundamental shift in how money moves. Their advantages in speed, cost, and accessibility are too compelling to ignore. With nearly every major payments player already involved, the trajectory points toward inevitability.

For payments and fintech companies, the safest bet is to prepare now. Educate, experiment, partner, and plan. The stablecoin-powered future is arriving fast. Those who adapt will thrive, while those who resist will be left behind.

Coming to SLF later this month? ETA’s SLF is a packed three-day event where relationships are built, conversations happen, and deals take shape. Don’t miss the session, Stablecoins and the Future of Payments: Promise, Risk, and Global Impact, happening on Tuesday, Sept. 30.

Citations

¹ https://cointelegraph.com/news/stablecoins-beat-visa-mastercard-2024-volume
² https://cryptoslate.com/stablecoins-surpass-visa-and-mastercard-with-27-6-trillion-transfer-volume-in-2024/
³ https://www.americanbanker.com/payments/news/stablecoin-payments-attract-visa-mastercard-and-others
⁴ https://www.finextra.com/newsarticle/46504/finastra-and-circle-bring-stablecoin-settlement-to-cross-border-payments
⁵ https://www.onesafe.io/blog/stablecoin-vs-bank-wire-contractor-payments
⁶ https://www.moonpay.com/newsroom/mastercard-stablecoin-payments