Why every business and financial institution needs a global stablecoin strategy.

14th May 2025

Across the world, businesses and financial institutions are rapidly recognising the significance of stablecoins. In the past two weeks, multiple fintech firms and banks have reached out, seeking insights into stablecoin adoption. Global payment leaders, including Stripe’s CEO, have acknowledged the rising importance of stablecoins as transaction volume surges and regulatory clarity is imminent. With over 90% likelihood that major economies (including the US and the EU) will establish stablecoin regulations within the next six to twelve months, companies must act now to integrate stablecoins into their financial strategies.

The rise of stablecoin use cases worldwide

Source: Coingecko (TeamBlockchain)

Notably, stablecoins have moved beyond crypto markets to become a vital tool in global finance. According to RWA.xyz, stablecoins now hold a $220 billion market cap, reflecting an 8% increase in a mere 30 days, as well as facilitating over $2.5 trillion in transactions monthly. Tether alone recently reported there are over 107 million active wallets globally that hold its stablecoin, increasingly being adopted for real-world applications. In high-inflation regions across Latin America, Africa and Southeast Asia, stablecoins provide a hedge against currency devaluation, allowing individuals and businesses to store digital dollars outside restrictive banking systems. Global trade settlements are also seeing increased stablecoin adoption, particularly in transactions between China, Africa and Latin America, where businesses use digital assets to pay for goods and services whilst reducing reliance on correspondent banking networks. The World Bank has reported that using traditional banks costs 6+%, but cross-border remittances can now be carried out more efficiently with stablecoins, whereby enabling instant, low-cost transfers from countries bypassing traditional remittance providers . The freelancer and remote workforce economy also benefit because stablecoins offer faster and more reliable payroll solutions for gig workers and international contractors.

Meanwhile, enterprises are leveraging stablecoins for B2B payments and treasury management, moving capital across borders 24/7 without dependence on banking hours whilst mitigating ForEx risks. For example, SAP, Google and PayPal are being used to pay EY invoices using the PayPal $ stablecoin. Additionally, decentralised finance (DeFi) platforms are utilising stablecoins for lending, borrowing and yield generation, providing businesses with alternative financing options beyond traditional banks. Hence, as global businesses continue to integrate stablecoins into their operations, early adopters stand to gain a significant competitive advantage. Whether or not these use cases currently align with a business’s strategy, it is only a matter of time before stablecoins become an essential part of financial transactions worldwide. Moreover, whilst stablecoins have gained traction in global markets, their future is being shaped by evolving regulations. The US is on the verge of passing stablecoin legislation, introducing clear reserve and compliance requirements. The STABLE Act (the US bill advancing stablecoin regulation) means is it increasing likely Congress will enshrine stablecoins into law this year. On the surface, the bipartisan push seems like a win: stablecoins, pegged to the dollar, would bolster US financial dominance, speed up transactions globally and make payments cheaper and more secure. However, critics warn that big tech could be the real winner. Under current drafts of the STABLE and GENIUS Acts, non-financial companies would be free to issue stablecoins, provided they receive regulatory approval. That opens the door for firms such as Amazon, Meta and X (formerly Twitter) to mint their own digital currencies - embedding themselves deeper into consumers’ financial lives. Imagine a world where Amazon stablecoins are used at Whole Foods, on Prime and at the Washington Post. Not only would big tech gain an unprecedented financial footprint, but billions of dollars that would traditionally support loans and credit markets would simply sit as reserves - sapping economic productivity.

However, history offers cautionary tales. In China, Tencent and Alibaba’s unchecked dominance over payments forced a government crackdown, tightening state control. So, could US regulators later regret giving big tech this kind of leverage? Certainly, as the US edges closer to stablecoin legislation, the stakes are enormous; stablecoins could revolutionise finance or they could privatise it; once big tech captures banking, closing the door again may be impossible. Meanwhile, Europe’s MiCA framework is setting standardised rules for issuers. Across the Asia-Pacific region, governments are establishing regional guidelines, signalling a shift toward structured oversight. Payments using stablecoins is expanding - in February 2025, stablecoins experienced a turnover of US$625 billion (an increase of 21% from same month in 2024). Stablecoins payments worth US$6.3 trillion were settled in the calendar year to February 2025, equivalent to 15% of worldwide retail cross-border payments for the whole of 2024. As regulatory frameworks take shape, stablecoins are expected to move beyond cross-border payments toward mainstream adoption. Payment giants are integrating stablecoins into their checkout systems, enabling lower-cost, high-speed transactions that could transform global e-commerce. Retailers and businesses stand to benefit from instant merchant settlements, receiving payments in real time without the delays associated with traditional banking infrastructure. In financial markets, stablecoin-backed loans and tokenised debt instruments are poised to enhance efficiency in global credit markets, whilst AI-driven commerce is emerging as a transformative force. AI-powered agents conducting international transactions will increasingly rely on stablecoins for instant and programmable payments. Additionally, as central banks develop digital currencies (CBDCs), stablecoins could act as a bridge, fostering financial inclusion and improving interoperability between digital fiat currencies and the traditional banking system. With regulation guiding the path forward, stablecoins are set to play a crucial role in the future of digital finance, driving innovation and reshaping global transactions. Businesses looking to integrate stablecoins must determine the most effective approach - whether to outsource, insource or adopt a hybrid model:

· outsourcing to third-party providers offers a streamlined solution with built-in licenses, liquidity management and compliance support requiring minimal investment but leading to higher transaction costs.

· insourcing, on the other hand, involves building an internal stablecoin infrastructure, enabling direct blockchain access and regulatory compliance while reducing long-term costs, though it demands significant upfront investment.

· a hybrid model combines both approaches, allowing businesses to partner with custody and liquidity providers whilst maintaining internal transaction controls for greater flexibility.

A robust stablecoin strategy is built on several foundational elements. Strong banking partnerships play a critical role, with institutions such as Standard Chartered (serving Asia, the Middle East and Africa), BTG Pactual (Brazil) and Banco Azteca (Mexico), enabling seamless stablecoin-to-fiat conversions. Payment aggregators such as Onafriq in Africa and D-Local in Latin America serve as crucial connectors, integrating stablecoins into local financial systems. Meanwhile, custody and liquidity providers such as Fireblocks, Coinbase and Gemini ensure secure asset storage, and liquidity firms such as WisdomTree and B2C2 optimise currency exchange efficiency. Now we are seeing new platforms being launched, such as Ubyx and Borderless, that are helping to bridge the gap between traditional fiat banking and stablecoins. To scale stablecoin adoption seamlessly, businesses can leverage API connectors such as BVNK, Bridge (Stripe) and ZeroHash, which simplify integration with existing financial systems. Additionally, as stablecoins become more embedded in financial markets, ensuring interoperability between decentralised finance (DeFi) protocols and traditional banking infrastructure will be critical for enabling seamless movement of digital assets across global markets. Furthermore, stablecoin selection is crucial for success in international transactions. Tether (USDT) dominates global trade flows, particularly in Asia and the Middle East, whilst USDC is gaining traction due to its regulatory compliance. Emerging options such as Paxos’ USDG and Ripple’s RLUSD provide new avenues for regulated global transactions. Blockchain choice is equally important - Ethereum leads in liquidity but has high transaction costs whilst Solana offers faster and cheaper transactions. Ripple’s blockchain provides strong banking integrations, and emerging platforms such as Avalanche and Aptos are positioning themselves for enterprise adoption.

Yet despite the rapid growth of stablecoins, several challenges must be addressed for mainstream adoption. Regulatory uncertainty remains a significant hurdle, as different jurisdictions impose varying levels of scrutiny, particularly in regions with strict capital controls. And whilst legislative progress is being made in the US and Europe, evolving compliance requirements create complexities for stablecoin issuers and businesses integrating these assets. Liquidity bottlenecks present another obstacle, as local fiat-to-stablecoin conversion is still limited in many markets. Without sufficient off-ramp capacity, businesses and individuals may struggle to efficiently convert stablecoins into local currencies, restricting their usability. Additionally, user experience remains a barrier, as many DeFi wallets and crypto exchanges require technical knowledge that mainstream users may find intimidating. Simplified interfaces and seamless onboarding processes will be crucial for broader adoption. The risks associated with fraud and money laundering require businesses to adopt rigorous compliance protocols when integrating stablecoins. Effective measures include wallet screening, continuous transaction monitoring and advanced fraud detection mechanisms to prevent illicit activities. Additionally, challenges such as network congestion and high fees on blockchains such as Ethereum can hinder adoption. Therefore, to counter these issues, businesses may consider leveraging alternative blockchain solutions that enhance scalability, reduce costs and uphold security and decentralisation.

In essence, stablecoins are transforming global payments, trade and financial services. With instant, low-cost transactions and increasing regulatory clarity, businesses which embrace stablecoins early will gain a strategic advantage in the evolving financial ecosystem. As adoption grows, stablecoins will not only facilitate global transactions but also reshape the way enterprises manage liquidity, settle payments and access credit markets. The next step is clear: businesses must develop a comprehensive stablecoin strategy to remain competitive in the digital economy. Those who delay then risk being left behind as the global financial landscape shifts toward a blockchain-powered future. As stablecoins continue to evolve, their integration with AI-driven commerce, decentralised finance and tokenised assets will unlock unprecedented efficiencies, making them an indispensable tool for businesses worldwide. The question is, will your business seize the opportunity or be left behind in the shift to a blockchain-powered financial future?