Are Stablecoins Quietly Becoming The Backbone Of Modern Finance Or Merely Supporting It?

Stablecoins were never supposed to steal the spotlight; they were designed as a practical solution to crypto volatility, with their start in the world of finance intended to be little more than a place to “park” value between trades. It was meant to be functional, but necessarily revolutionary. At least, not for most people.

But something’s shifted. Today, stablecoins aren’t just sitting on the sidelines of finance – now, they’re becoming woven into the industry, moving quietly, steadily and in ways that are becoming harder to ignore. But, why would we want to?

 

From Crypto Convenience to Real Financial Utility

 

In their earliest form, stablecoins were mostly confined to crypto markets. Traders used them to avoid volatility, exchanges relied on them for liquidity and that was about it.

But now, their role looks very different. As Shantnoo Saxsena, CEO AND Founder of Encryptus, puts it, “stablecoins have moved well beyond the crypto ecosystem. They are no longer just a tool for traders looking to park value between positions. They are becoming critical infrastructure for cross-border payments, remittances and settlement layers that traditional finance has struggled to modernise.”

That shift from niche tool to real-world utility is where the story gets interesting. Stablecoins are increasingly being used to move money globally, settle transactions instantly, and enable financial products that operate outside the constraints of traditional banking hours.

 

 

An Era of Integration Era

 

The real transformation isn’t just about what stablecoins do; it’s about where they’re showing up. They’re being embedded into fintech platforms, integrated into payment systems and explored by banks for treasury and settlement use cases. In many ways, they are becoming the connective tissue between different parts of the financial system. They’re popping up everywhere, from standard trading to life insurance.

Danat Tungushbayev, Global Head of Sales at Mansa, highlights this evolution, noting that stablecoins are becoming “the connective layer between already-efficient domestic payment networks”, helping bridge systems that work well locally but struggle across borders.

This idea of stablecoins as a “layer” rather than a replacement is a recurring theme. They are not tearing down the financial system. They are slotting into its gaps.

 

Backbone or Bridge?

 

So, are stablecoins becoming the backbone of modern finance? The answer, frustratingly, is both yes and not yet – most experts seem to at least kind of agree on this.

On one hand, their growing role in payments, settlement and liquidity management suggests something deeper is happening. As Lucas Outumuro, VP, Institutional DeFi at Sentora, explains, “stablecoins aren’t just supporting the financial system anymore, they’re starting to look a lot more like the infrastructure behind it.”

Similarly, Sid Powell, CEO and Co-Founder of Maple, describes a clear evolution happening before our eyes: “what started as a tool for crypto traders has evolved into core financial infrastructure.”

On the other hand, there are still limitations. Regulation remains fragmented, infrastructure is not fully unified, and stablecoins still rely heavily on traditional financial systems for trust, liquidity, and backing.

That’s why many experts frame them as a bridge rather than a backbone – well, at least for now.

 

“Upgrading the Plumbing”, So To Speak

 

A more accurate way to think about stablecoins might be that they’re upgrading the plumbing of finance.

Mitchell DiRaimondo, Founder at Steelwave Digital, puts it bluntly when he says that “they are upgrading its plumbing. They sit between legacy finance and the next version of capital markets.”

This is where their real power lies. Stablecoins are not replacing banks or payment networks overnight. Instead, they are making them faster, cheaper, and more flexible.

From cross-border payments to treasury management, from remittances to on-chain lending, stablecoins are being deployed wherever inefficiencies exist.

 

A Quiet Shift, But a Fundamental One

 

What makes this moment particularly interesting is how quietly it is happening. There’s no single “big bang” event. No headline moment where stablecoins officially become infrastructure. Instead, we’re seeing a gradual, almost invisible integration into the systems we already use. Did you even realise how deeply embedded stablecoins have become in industries beyond straightforward crypto? Because I’ll be honest, I didn’t.

And, is that may not the clearest signal of all?

As Emma Campbell, Chief Banking Officer at ONE.io, notes, “today, stablecoins operate alongside existing payment infrastructure as an alternative settlement layer, raising expectations for speed, availability, and capital efficiency.”

In other words, even where they are not dominant, they are already changing the rules.

 

So, What Are Stablecoins Really?

 

Stablecoins aren’t just a feature anymore, but at the same time, calling them the backbone might still be premature.

For now, they sit somewhere in between – a critical layer, a powerful bridge and an increasingly essential piece of financial infrastructure. But they’re not everything.

The trajectory, however, feels pretty clear when you look at it like this.

As adoption grows, regulation matures, and integration deepens, stablecoins are moving closer to becoming something foundational. Not by replacing the system, but by embedding themselves so deeply within it that removing them would no longer be possible.

Whether they become the backbone or remain the most important supporting player may ultimately come down to one thing – how seamlessly they disappear into the fabric of finance.

 

Our Experts

 

• Danat Tungushbayev: Global Head of Sales at Mansa
• Shantnoo Saxsena: CEO AND Founder of Encryptus
• Lucas Outumuro: VP, Institutional DeFi at Sentora
• Sid Powell: CEO and Co-Founder of Maple
• Carl Grimstad: CEO of Global Digital Assets Infrastructure at Lydian
• Mark Nichols: Digital Assets Consulting Co-Leader at Ernst & Young LLP
• Kathryn Dodds: Corporate and FinTech Partner at gunnercooke
• Mitchell DiRaimondo: Lead Project Manager and Founder at Steelwave Digital
• Bill Barhydt: Founder and CEO at Abra
• Robbert Bink: Founder and Crypto Wallet Recovery Expert at Crypto Wallet Recovery Service
• Pratiksha Pathak: Partner, Head of Payments at RedCompass Labs
• Ian Salmon: Head of Product Marketing at Adaptive
• James Burnie: FinTech Partner at gunnercooke
• Nick Fernando: Co-Founder and Director at Aqua Global
• Amram Adar: CEO, Co-Founder and CVO (Chief Vision Officer) at Oobit
• Jean-Baptiste Gaudemet: SVP Strategic Innovation Lab at Kyriba
• Serge Kuznetsov: Co-Founder at INXY Payments
• Boris Bohrer-Bilowitzki: CEO at Concordium
• Kelly Mathieson: Chief Business Development Officer at Digital Asset
• Anil Oncu: CEO at Bitpace
• Emma Campbell: Chief Banking Officer, ONE.io
• Marcel Thiess: CEO at Thiess Invest
• Adam Bialy: Founder and CEO of Fiat Republic

 

Danat Tungushbayev, Global Head of Sales at Mansa

 

 

“Danat’s view is that stablecoins are becoming most useful not as a separate financial system, but as the connective layer between already-efficient domestic payment networks. His comment looks at how rails such as PIX, UPI, SPEI and SEPA work well locally, while stablecoins and blockchain-based settlement help connect them across borders more efficiently.

“He also addresses the commercial drivers behind adoption – speed, cost, visibility and operational efficiency – as well as the remaining constraints around fragmented licensing, uneven liquidity across corridors and the need for stronger institutional-grade infrastructure. Looking ahead, his perspective is that the conversation has moved from potential to execution, particularly in cross-border payments and in markets where traditional banking infrastructure remains limited.”

 

Shantnoo Saxsena, CEO AND Founder of Encryptus

 

 

“Stablecoins have moved well beyond the crypto ecosystem. They are no longer just a tool for traders looking to park value between positions. They are becoming critical infrastructure for cross-border payments, remittances and settlement layers that traditional finance has struggled to modernise.

“The numbers speak for themselves. Stablecoin transaction volumes surged past $33 trillion in 2025, now rival those of major card networks, and institutional adoption is accelerating as regulatory frameworks take shape across jurisdictions like the EU and the UAE. Banks that once dismissed digital assets are now exploring stablecoin integration for faster, cheaper settlement.

“Calling them merely supportive undersells what is happening. Stablecoins are quietly rewiring the plumbing of global finance, not replacing traditional systems, but making them significantly more efficient. At Encryptus, we see this first-hand as businesses increasingly choose stablecoin rails for real commercial activity, not speculation.

“The backbone analogy is not far off. It is just being built in plain sight.”

 

Lucas Outumuro, VP, Institutional DeFi at Sentora

 

 

“Stablecoins aren’t just supporting the financial system anymore, they’re starting to look a lot more like the infrastructure behind it. The change over the past few years is that usage has moved away from pure speculation. Even when crypto prices are volatile, stablecoin activity holds up because people are using them for things like payments, savings and earning yield.

“That’s the point where they stop being just a feature and start becoming something much more fundamental to how financial systems operate. They allow money to move globally, almost instantly, and open up access to financial services in a way traditional systems simply can’t.

“For fintechs and neobanks, they’re becoming the easiest way to offer faster payments and more competitive returns without rebuilding the entire stack. What’s more, the adoption curve is a little different too. Usually, there’s one or two champions internally pushing for crypto integrations, and the rest of the team needs to get up to speed on how blockchains work. The smart platforms abstract all the complexity — users just see a clean interface, earn yield or make payments, without worrying about what’s happening behind the scenes.

“That said, they’re not replacing banks overnight. Right now, they sit alongside existing infrastructure, where they improve it rather than displace it. But as adoption grows and the technology matures, their role will become very important to how modern finance operates.”

 

Sid Powell, CEO and Co-Founder of Maple

 

 

“Stablecoins are moving into the mainstream because they do something incredibly well: they make dollars more usable on the internet. For a long time, moving money across borders or between platforms has been slower, more expensive, and more operationally messy than it should be. Stablecoins change that by giving users and businesses a faster, more programmable way to move value, which is why they are becoming increasingly important across both crypto and traditional finance.

“What started as a tool for crypto traders has evolved into core financial infrastructure. Stablecoins now underpin lending markets, treasury management, and yield-bearing products that institutions and companies are actively using. A business in Southeast Asia can access dollar liquidity in minutes rather than days. A treasury team can put idle capital to work on-chain overnight. That shift is less about hype and more about utility, and the infrastructure is now mature enough that traditional finance is paying serious attention.

“The next stage will be about scale and trust: clearer regulation, deeper liquidity, and more institutions willing to build on these rails rather than just watch from the sidelines. From where we sit, that moment is closer than most people think.”

 

For any questions, comments or features, please contact us directly.

 

Carl Grimstad, CEO of Global Digital Assets Infrastructure at Lydian

 

 

“Stablecoins have been touted as the backbone of the finance industry. In reality, it’s far too early for that. What we’re currently experiencing is a transition phase. Stablecoins are proving they can solve real-world problems – offering faster settlement, lower costs, and fewer of the frictions that businesses and consumers have come to accept as normal.

“However, the system around them is still fragmented. Banks, fintechs, and digital asset providers are building in parallel rather than together, which limits how seamlessly stablecoins can be used in day to day commerce. Right now, it’s a jungle of incompatible payment networks adding unnecessary complexity for both merchants and consumers.For many users, simply understanding how to get started – which wallet to use, what works where, and how payments are accepted – stands as a major deterrent to adoption

“Where stablecoins are becoming critical is in how they connect these worlds. They’re starting to act as a bridge between traditional finance and digital assets, not a replacement for either. The real shift will come when that connectivity becomes invisible. At that point, when they’re part of everyday practice for merchants and consumers alike, stablecoins will underpin global finance.”

 

Mark Nichols: Digital Assets Consulting Co-Leader at Ernst & Young LLP

 

 

“The evolving role of stablecoins in fintech and traditional finance

“Stablecoins are redefining modern payments, serving as a bridge between traditional finance and on‑chain markets. Their value is straightforward. They allow money to move faster, at lower cost, and with fewer operational frictions than many existing systems. Recent EY research shows that usage is already underway, with 13% of financial institutions and corporates already using stablecoins, and a majority of non‑users planning to adopt them within the next year.”

“This momentum reflects a shift in how organizations view stablecoins. Stablecoins are no longer viewed as niche digital assets. They are increasingly treated as practical infrastructure supporting everyday financial activity, including crossborder payments, liquidity management, and transaction settlement, while aligning with existing risk, treasury, and compliance frameworks. As markets continue to modernize, stablecoins are emerging as an extension of today’s cash and payments infrastructure.”

“Are stablecoins are becoming core financial infrastructure or remaining a complementary tool?

“Stablecoins are moving beyond experimentation and into real operational use, particularly in payments and settlement. EY’s latest research shows strong near‑term momentum, with 54% of organizations that are not currently using stablecoins expecting to begin doing so within the next 6 to 12 months. That level of intent signals that many firms are no longer treating stablecoins as a theoretical innovation, but as a practical capability that can be integrated into core financial operations.”

“Adoption remains pragmatic. Stablecoins are not replacing traditional banking systems. They are being deployed alongside them to address specific gaps, most notably speed, cost, and continuous availability. This measured approach reflects a broader modernization underway across financial services, as institutions reinforce existing infrastructure to operate faster, more efficiently, and in real time.”

“Key drivers behind growing adoption

“Cost savings and speed are the clearest catalysts behind adoption. EY research found that 52% of organizations cite reduced transaction costs as a primary driver of stablecoin adoption, while 45% point to faster cross-border payments. For early adopters, the benefits are already measurable with 41% report cost savings exceeding 10%, particularly in U.S. dollar‑based, business‑to‑business and cross‑border transaction, areas where traditional payments have historically been slow, complex, and costly.”

“The adoption appeal also extends beyond cost savings. Always on settlement and improved liquidity are emerging as meaningful differentiators, with roughly one-third of respondents highlighting the value of 24 seven payment availability and near instant finality. Together, these factors are pushing organizations beyond pilots and proofs of concept. As regulatory clarity improves, stablecoins are increasingly seen as a practical way to streamline existing financial processes and improve performance.”

“Potential risks, limitations, and regulatory considerations

“Regulatory certainty remains central to sustainable adoption. While recent progress has improved confidence, institutions continue to focus on governance, liquidity management, operational integration, and ecosystem readiness. Many are addressing these risks through phased rollouts, hybrid bank–fintech models, and use case specific implementations that balance innovation with established risk management practices.”

“What the future holds for stablecoins in the broader financial ecosystem

“Stablecoins are expected to extend the reach of existing currencies, particularly the U.S. dollar, rather than replace them. Survey respondents estimate that stablecoins could account for 5% to 10% of global cross‑border payments by 2030, representing approximately $2.1 trillion to $4.2 trillion in annual transaction value.”

“Looking ahead, stablecoins are expected to coexist with tokenized bank deposits and central bank digital currencies, serving as market‑driven settlement and liquidity rails within a more always‑on global financial system. Their role will increasingly center on enabling speed, efficiency, and interoperability across traditional and digital financial ecosystems.”

 

Kathryn Dodds, Corporate and FinTech Partner at gunnercooke

 

 

 

“Stablecoins are increasingly becoming core financial infrastructure, but it’s more accurate to say they are bridging traditional finance and a new digital layer rather than replacing it entirely. Their real value lies in what they enable: faster settlement, programmability, and global, 24/7 transfer of value. This is attractive to institutions looking to reduce friction, cost and counterparty risk.

In DeFi, stablecoins are already foundational, acting as the primary medium for trading, lending, liquidity provision and collateral. They underpin how value moves within on-chain financial ecosystems. Adoption is also being driven by integration into existing systems; fintech platforms, payment providers and increasingly banks.

So while not yet the “backbone”, stablecoins are becoming a critical layer underpinning the evolution of modern finance.”

 

Mitchell DiRaimondo, Lead Project Manager and Founder at Steelwave Digital

 

 

“Yes, and that is the point.

“Stablecoins are no longer some side pocket of crypto that only matters to traders and Telegram groups. They are increasingly becoming the transactional layer that modern finance can plug into when it wants faster settlement, 24/7 transferability, global dollar reach, and programmable movement of value. But let’s be precise: today, stablecoins are not replacing the financial system. They are upgrading its plumbing. They sit between legacy finance and the next version of capital markets. That makes them more than a complementary tool, but not yet the full foundation.

“The real shift is that stablecoins are moving from crypto utility to financial infrastructure. Fintechs, payment companies, and now regulated financial institutions are integrating them because they solve actual problems: instant settlement, lower friction in cross-border flows, better treasury mobility, and programmable cash movement. Treasury has already flagged that the U.S. stablecoin framework can create meaningful new demand for short-dated Treasuries, while the Fed has explicitly noted that mainstream Stablecoin adoption could reshape bank funding, liquidity profiles, and credit intermediation. That is not “nice add-on” territory. That is system-level relevance.

“My view is simple: stablecoins are becoming core infrastructure for certain functions first, then broader financial rails second. Payments, settlement, collateral mobility, onchain FX, and tokenized asset distribution are the obvious beachheads. In those lanes, they are already acting more like infrastructure than product. But they still depend heavily on the credibility of the existing system, especially the U.S. dollar, Treasury markets, banking relationships, and regulation. So for now, the honest answer is that stablecoins are becoming the backbone of modern financial rails while still drawing strength from the old backbone underneath them.

“The biggest drivers of adoption are straightforward. First, dollar demand is global, and stablecoins deliver digital dollars with fewer frictions. Second, regulatory clarity has improved materially, especially with the GENIUS Act in the U.S. and MiCA in Europe, which reduces institutional hesitation. Third, tokenization is pushing stablecoins forward because once assets move on-chain, the market needs native on-chain cash settlement too. Fourth, users want “always on” settlement, not banker’s hours wrapped in compliance theater. ECB research specifically notes stablecoin growth has been fueled by investor demand and regulatory developments, and BIS continues to frame tokenization as a major financial market upgrade, even while criticizing stablecoins as the end state for money itself.

“That said, anyone calling stablecoins a clean win is getting ahead of their skis. The risks are real. Depegging risk is real. The run risk is real. Regulatory arbitrage is real. Bank deposit displacement is real. And fragmentation across chains is a mess. BIS research this year highlighted that stablecoin liquidity is scattered across many blockchains, often with poor native interoperability, which undermines the seamless fungibility money is supposed to have. ECB has also warned that rapid stablecoin growth creates spillover risks through structural weaknesses and rising links to traditional finance. So yes, this thing is scaling, but no, it is not institutionally perfect yet. Far from it.

“This is also where the policy debate matters. The winning framework is not one that tries to suffocate stablecoins to protect the incumbents. It is one that forces reserve quality, transparency, redemption standards, AML controls, and operational resilience, while still allowing innovation to happen in the U.S. Treasury has outlined that the GENIUS Act requires 1 to 1 backing with cash like or short duration government assets, and the Fed has emphasized that stablecoins will only work as a durable form of private money if users view them as safe and properly protected. That is the correct lane. Clear rules, hard standards, and an open field.

“So what does the future look like? Stablecoins will not stay boxed in as a crypto settlement chip. They are going to become a key monetary wrapper for internet-native finance. The likely path is not “stablecoins replace banks.” It is “stablecoins become embedded across banks, fintechs, capital markets, and tokenized asset platforms.” In other words, they become a default transactional rail for portions of the system where speed, programmability, and global settlement actually matter. The institutions that win will be the ones that stop viewing stablecoins as a side experiment and start treating them as digital-dollar infrastructure.

“Stablecoins are no longer just supporting the old system. They are becoming the settlement layer for the next one. But they only become true backbone infrastructure if regulation, interoperability, and reserve integrity keep pace with adoption. Right now, we are in the buildout phase. The rails are being laid in real time.”

 

For any questions, comments or features, please contact us directly.

 

Bill Barhydt, Founder and CEO at Abra

 

 

“Stablecoins basically take the best of the decentralized world where there’s nobody in the middle of the transaction and the best of the traditional government money issued world where now instead of moving paper around you can move these digital tokens around. There are really two risks you have to be aware of.

“The first is are the dollars or dollar backed securities really in the accounts that back those tokens? Are they audited? The second risk is technology risk. Could that token’s code be hacked? The good news is for the stablecoin specific type of product we have really addressed the technology risk. What we’re calling a stablecoin now is actually in reality a tokenized real world asset. Today those digital assets are a combination of crypto and stablecoins. They’re about to become everything.”

 

Robbert Bink, Founder and Crypto Wallet Recovery Expert at Crypto Wallet Recovery Service

 

 

“Stablecoins are rapidly establishing themselves as both core financial infrastructure and vital enhancements to existing systems. Their capacity for instant, low-cost cross-border payments and stable value is already reshaping global finance – especially where traditional banking falls short. At the same time, stablecoins are seamlessly integrating with legacy networks, bridging decentralized and mainstream finance.

“Their emergence as a foundational layer will rely on broader adoption, regulatory clarity, and technological refinement. The reality is clear: stablecoins are no longer just disruptive—they are essential. The future of finance depends on how effectively they balance innovation with integration.”

 

Pratiksha Pathak, Partner, Head of Payments at RedCompass Labs

 

 

“What we are seeing is that technology is already capable of enabling near-instant cross-border settlement, but policy and treasury operating models are still built around legacy assumptions.

“Most government and institutional treasury functions are still structured around business-day liquidity cycles, prefunding models, and end-of-day reconciliation. That mindset does not translate well into always-on settlement environments, whether through instant payment rails or tokenised settlement models. The result is that the technology can settle instantly, but the funding and governance models behind it remain slow.

“Policy also continues to lag in terms of cross-border alignment. Individual jurisdictions are moving forward with frameworks but the real challenge is how these regimes interact. Stablecoin issuance, redemption, custody, and reserve treatment are still interpreted differently across markets, which creates friction for global scalability.

“The gap is no longer about whether the technology works. It is about whether treasury, funding, and regulatory models can adapt quickly enough to support always-on liquidity, real-time risk controls, and global settlement certainty.”

 

Ian Salmon, Head of Product Marketing at Adaptive

 

 

“Stablecoins are increasingly being integrated into traditional finance, with a number of financial market infrastructures in the US and EU (namely DTCC, ICE and Nasdaq) announcing initiatives to go live in 2026 for the trading and settlement of digital assets.

“The SEC’s ‘no-action’ relief for DTCC’s plan to tokenise real world assets, which shares similar ambitions to Nasdaq and Boerse Stuttgart’s Seturion platform – to enable 24×7 on-chain settlement – require always-on digital payment rails.

“The increased regulatory clarity, paired with the clear business benefits of instantaneous, highly available collateral mobility has therefor accelerated the requirement for stablecoins. In fact, they do become the backbone of the next generation of settlement and collateral management platforms where more digitally native and highly-available payment rails are required for atomic delivery.

“The moment that will define whether Stablecoins are the backbone of a new financial world rather than the support for the existing industry will be when institutional consumers can natively interact with digital currencies across their whole infrastructure. This involves rearchitecting existing systems and workflows to be always-on, highly resilient, and instantaneous.

“Increased regulatory clarity and focus on instantaneous, highly available collateral mobility have placed stablecoins squarely in the spotlight.

“Stablecoins are being proven as critical for certain use cases, driving demand for infrastructure change to support new payment rails and 24×7 operation.

“In digital-native markets they are the backbone, enabling instantaneous movement of cash and assets. In traditional markets they support the increased efficiency of a growing number of valuable use cases.”

 

For any questions, comments or features, please contact us directly.

 

James Burnie, FinTech Partner at gunnercooke

 

 

“Stablecoins are quietly becoming the backbone of modern finance, as they allow faster, cheaper and automated payments. Their importance is shown by the FCA Stablecoin sprint, which we were involved in earlier this year, which considered how best to integrate them with the broader UK economy.

“However, the pathway is not going to be straightforward. The core problem is “what is a stablecoin”, as there are currently a range of purported stablecoins, which are stablecoins as such would be understood by the general public, but which are not what regulators consider a “stablecoin”.

“To be a stablecoin, in the regulated sense, a coin would generally need to be fully backed by a fiat / highly liquid reserve (i.e. not cryptoassets nor algorithmically backed) in accordance with local domestic requirements. The local requirements are highly conflicting, as e.g. in the EU the requirement is that stablecoin issuers need an e-money licences, whereas the UK is likely to prohibit e-money being used as a backing reserve asset. The consequence of this is likely to be a proliferation of stablecoin use cases for internal markets, providing a backbone for internal payments, but their status on the initial stage is going to be a much tougher journey.”

 

Nick Fernando, Co-Founder and Director at Aqua Global

 

 

“Stablecoins are no longer sat at the edges of finance, instead they are starting to expose where the system is weakest. Cross-border payments, long defined by delays and complexity, are the clearest fault line. Digital rails offer a more direct alternative, with faster settlement, lower costs and enhanced oversight via blockchains.

“But calling them the backbone is premature. At this moment, they mostly plug into and improve what already exists, rather than replace it. Most banks are still running on infrastructure that cannot fully integrate with digital money, held back by legacy systems and manual processes. The risk is that banks and digital rails won’t communicate properly, with existing platforms unable to handle the structured data that comes with digital transactions. This means fragmented data, more complex reconciliation and a higher likelihood of delays or failed payments.

“Momentum is building around digital payments, from UK Finance tokenised deposit pilots to Swift’s push into digital interoperability. But stablecoins alone will not redefine the system. The real shift will come from banks that modernise first.”

 

Amram Adar, CEO, Co-Founder and CVO (Chief Vision Officer) at Oobit

 

 

“1. Stablecoins are shifting from being simply instruments of trade to being integral components of the payment ecosystem. FinTech applications and payment systems are already quietly leveraging them to make payments more efficient and cheaper. What used to take days in international transactions is now being cleared in seconds. It’s not hype; it’s making the system work better.

“2. Stablecoins are not yet disrupting the system but are working alongside it. However, they are gradually becoming the system. In the case of remittances, stablecoins are not an added feature but the feature. As their use continues to rise, wallets that hold them will soon replace traditional bank accounts. This is the real disruption.

“3. Stablecoins continue to grow in popularity because they address real-world problems such as exorbitant fees and slow money movement. Sending USDC abroad, for example, is instant and essentially free compared to traditional wire transfers. Another factor is the evolution of wallets, which makes them as easy to use as contactless payments. People will gravitate towards them when they are comfortable with them, and comfort breeds quick adoption.

“4. However, the biggest challenge is not the technology but rather trust and regulation. People have to be assured that their stablecoins are fully backed and can be converted into fiat money. Another challenge is the fragmentation of different blockchains and the lack of standardization in the market. Clear regulation of the sector could be the solution to these challenges and could make them more mainstream.

“5. Stablecoins are set to become the default system of settlement in the digital financial system. Over time, people won’t even be aware that they are using blockchain technology, just as people do not know when they are using payment systems today. The disruption will be felt in wallets, which will be the conduit through which people spend their stablecoins. At that point, stablecoins will be digital money.”

 

Jean-Baptiste Gaudemet, SVP Strategic Innovation Lab at Kyriba Corp

 

 

“Stablecoins originated in crypto trading but are now solving real-world treasury problems. Their first role is straightforward: offering alternative payment rails for expensive cross-border corridors. Traditional infrastructure charges 1-3% and takes days, whereas stablecoin rails cost pennies and settle in minutes.

“What makes the stablecoins technology more than an incremental improvement is the infrastructure being built underneath. Beyond alternative payment rails, the next development is on-chain liquidity through tokenized money market funds offering anytime subscription and redemption with yield calculated minute-by-minute. The following phase will see corporates enable decentralized financing by tokenizing their own real-world assets such as receivables and payables.

“The evolving role is this: Payments are extending the current system. On-chain liquidity will create new capabilities traditional finance can’t match. And asset tokenization will change how corporate financing fundamentally works.

“Stablecoins alone are complementary because they sit outside the banking system: you need on-ramps and off-ramps for every transaction involving your bank deposit account. However, bank-issued deposit tokens change this equation.

“When banks tokenize deposits, you get a bridge between traditional banking and on-chain liquidity. A treasury can hold bank deposits that are natively blockchain-compatible. This isn’t just plugging crypto into banking – it’s having banking infrastructure that works on-chain. This is essential to getting the best of both worlds: the stability and regulatory clarity of bank deposits with the programmability and 24/7 availability of blockchain settlement.

“The development of multiple stablecoins in different currencies plus bank deposit tokens creates a many-to-many settlement challenge. This will require new clearing infrastructure to ensure that on-chain banking delivers value without introducing liquidity fragmentation or additional operating costs.”

 

For any questions, comments or features, please contact us directly.

 

Serge Kuznetsov, Co-Founder at INXY Payments

 

 

“Stablecoins are gaining increasing popularity because they meet a clear market demand from both financial institutions and end users. In the banking sector, this demand is particularly evident among corporate and high-net-worth clients — it is their requests that are driving neobanks, fintech companies, and even traditional players to launch stablecoin-based products, even as they all remain cautious due to risks related to regulation, compliance, and reputation.

“The reason why stablecoins are so prevalent in the market, despite the still-evolving regulatory environment, is that the market often outpaces regulation.

“Stablecoins gained traction before regulators had fully defined requirements for reserves, disclosure, auditing, legal frameworks, and operational risks. Regulators are following a familiar pattern, in which adoption comes first and formal rules follow later. Crypto infrastructure originally grew out of the idea of decentralization and independence from the traditional monetary system, while stablecoins emerged as a more convenient form of payment in the digital environment.

“Payments in stablecoins are particularly relevant for tech-savvy audiences and internationally mobile groups, such as digital nomads and certain segments of the premium market – for them, digital payments have already become a natural part of everyday life.

“For businesses, this presents a pragmatic and profitable opportunity: accepting payments in stablecoins helps attract younger, tech-savvy customers, speed up international transactions, reduce transfer costs, and resolve certain issues related to chargebacks and currency conversion.”

 

Boris Bohrer-Bilowitzki, CEO at Concordium

 

 

“Banks and payment providers are essential for evolution, as they bring consumer trust built on regulatory expertise and established relationships, which are vital for stablecoin development and adoption. We’re already seeing consortia working towards developing a Euro-backed stablecoin, aiming to contribute to Europe’s strategic autonomy in payments, while reducing dependence on the U.S. dollar.

“However, fresh infrastructure built from the ground up is needed for compliance and security at its core. The future is likely a hybrid with banks and payment providers acting as bridges with users, while blockchains handle the rails and automation.

“2026 is the year when hype will get separated from real-world utility. The ones that’ll survive are the serious infrastructure builders who prioritize security, privacy-preserving identity, and actual utility for consumers in their daily economic activities.”

 

Nadish Lad, Global Head of Product and Strategic Business at Volante Technologies

 

 

“Stablecoins are not becoming the backbone of modern finance, but they are moving well beyond being a supporting feature.

“What makes them different is simple. They are digital assets backed by a guarantor, typically a financial institution or bank, meaning they carry the same value that the guarantor has promised, but can be exchanged purely digitally on a blockchain-supported network.

“That combination is what is driving their shift into mainstream infrastructure. As institutions operate more globally, cross-border banking and payment processes are becoming more important. In cross-border payments, stablecoins reduce reliance on intermediary networks and remove the need to maintain liquidity across multiple nostro and vostro accounts. Value can be transferred directly between parties who accept that asset.

“They do not replace existing systems but sit alongside them. The reality is we are moving towards a multi-rail, multi-asset environment, where stablecoins become a critical layer in how value moves, rather than the foundation the system is built on.”

 

Kelly Mathieson, Chief Business Development Officer at Digital Asset

 

 

“Over the last year, we’ve seen stablecoins gain traction within the global financial system. They have become a more significant part of the conversation around modern financial infrastructure, especially where always-on settlement and greater flexibility can make a clear difference.

“As the conversation has matured and institutional interest has also increased, privacy has become an increasingly important piece of the puzzle. If financial firms want to use stablecoins for treasury operations or collateral management, their activity cannot be publicly visible in real time. Privacy as well as increased regulatory clarity will help unlock the next wave of stablecoin adoption.”

 

Anil Oncu, CEO at Bitpace

 

 

“In enabling fast, low-cost global payments, without relying on traditional rails, stablecoins allow new levels of transactional convenience.

“The recent wave of crypto acquisitions is accelerating with crypto sector growth and the tangible, positive impacts DeFi payments are having across industries, particularly in emerging markets. Large financial institutions now see crypto as critical infrastructure for commerce, treasury, and liquidity management. With the convergence of fiat and digital rails accelerating, large payment companies are racing to secure capabilities and talent before the market consolidates, rather than risk being bypassed by more agile, crypto-native players.

“This validates where the market is heading, toward faster, more transparent, and interoperable payment systems, where fiat and digital assets coexist and work together seamlessly to make payments better than ever.”

 

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“Stablecoins settled over $11 trillion in adjusted volume in 2025. However, roughly 70% of in stablecoin transaction volume in 2024 was driven by automated trading bots. The actual organic, human-initiated usage is a fraction of what the industry celebrates.

“That said, I’m still bullish on stablecoins becoming foundational infrastructure. Strip away the inflated numbers and you find Visa and Mastercard integrating USDC settlement, major banks piloting tokenized deposits, and real cross-border payment flows growing every quarter.

“The foundation is being built. It’s just smaller and more boring than the headlines suggest.

“Moreover, the EU’s MiCA regime and the US GENIUS Act now impose bank-grade reserve, redemption, and disclosure standards on issuers. Stablecoins become backbone infrastructure when they become regulated, trusted, and embedded. And that process has started.”

 

Adam Bialy, Founder and CEO of Fiat Republic

 

 

“Stablecoins aren’t quietly becoming the backbone of modern finance – that’s already happened. The Mastercard/BVNK deal this month is the clearest signal yet. When a $400 billion payments network spends $1.8 billion on stablecoin infrastructure, it shows they are playing catch up.

“Stablecoins matter and we know it. The question is whether the infrastructure underneath them is actually fit for purpose. Settlement needs to be instant, compliant, and connected to real banking rails. That’s what institutions are demanding, and it’s what’s being built right now.”

 

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