Stablecoins In Finance

I believe stablecoins could go down as one of the most important innovations of the 21st century. 10 reasons why the US gov’t should be supporting stablecoin innovation. 1. Stablecoins are backed by US Treasuries — making them less risky than bank deposits backed by a basket of non-transparent bank loans and assets. 2. Stablecoins transact globally, peer-to-peer, and at lower costs than credit cards, ACH, and wires. Savings can be passed back to consumers who will likely recycle the savings into other parts of the economy. 3. The instant settlement of stablecoins means that we can increase the velocity of money without the use of debt. This is a big idea and one hard to appreciate given the current paradigm. 4. Stablecoins disrupt banking and payments monopolies — reducing concentration risk while allowing innovation to thrive and the “little guy” to compete. 5. Stablecoins level the playing field in emerging markets. The rock-star engineer in India can now easily receive payment in dollars, swap to local currencies as needed for spending, and recycle their wealth back into the local economy (rather than moving to NYC or another American city). This is a win/win for the US and emerging markets with rich pools of labor. 6. Stablecoins can improve existing payroll services to allow employees and contractors to be paid faster than 1x/week or 2x/month. Yield-bearing stablecoins will blur the lines between checking and savings accounts. 7. Stablecoins offer the banks a highly scalable new line of revenue. What’s stopping Bank of America from exporting its brand/trust to emerging markets? Remember, there is insatiable demand for dollars abroad and roughly $130 trillion of currency globally. About $30 trillion is in US dollars today. The delta is the addressable market for stablecoin issuers and banks. 8. Stablecoins are increasing the network effect of the dollar worldwide. 9. Stablecoins are buyers of US debt at a precise moment when marginal buyers are disappearing (e.g. China). Issuers are currently the 16th largest holders of US treasuries (and growing). 10. Stablecoins are banking the unbanked in emerging economies. It’s hard to find a reason why policymakers would not be embracing this technology, other than “let's move slow, be thoughtful, and not break anything.” What do you think? Will we see legislation on stablecoins next year? Data: Total Monthly Peer-to-Peer Volume (avg. $600b/month in '24) powered by Artemis

Stablecoins Are Entering a New Phase—And This Time, It’s Regulatory For nearly a decade, stablecoins have offered a compelling alternative to legacy payment systems—delivering faster settlement, lower transaction costs, and improved transparency. But adoption remained fragmented, limited by regulatory uncertainty and lack of institutional alignment. That’s changing. With clearer guidance emerging—especially through the proposed US GENIUS Act—stablecoins are moving from speculative instruments to legitimate financial infrastructure, particularly in cross-border payments and corporate treasury. In B2B payments, the transition from traditional rails is not trivial. It demands new custody arrangements, updates to treasury and accounting workflows, and enhanced compliance with sanctions and AML regulations. Still, adoption is taking root in specific corridors. In currency-volatile markets like Turkey and Nigeria, stablecoins are now essential for preserving value, maintaining access to US dollar liquidity, and enabling seamless on-chain transactions—especially for populations underserved by formal banking channels. In treasury operations, the gap is even more apparent. Traditional systems lack a 24/7 liquidity layer. Stablecoins fill that void—offering immediate access to cash equivalents, real-time settlement of obligations, and more agile cash management. Companies like Ferrari and SpaceX are already using them in practice. This shift isn’t about replacing banks—it’s about augmenting outdated infrastructure where it no longer serves the pace of global commerce. Adapted from BCG’s report: “Stablecoins: Five Killer Tests to Gauge Their Potential https://lnkd.in/g-Ybz-ei #payments #stablecoins #financialservices #regulations

Stablecoins are rewriting the rules of global money. Yesterday, EURAU, Germany’s first fully regulated euro-denominated stablecoin went live. 𝗔 𝘀𝗺𝗮𝗹𝗹 𝘀𝘁𝗲𝗽 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗘𝘂𝗿𝗼𝘇𝗼𝗻𝗲. 𝗔 𝗯𝗶𝗴 𝗹𝗲𝗮𝗽 𝗳𝗼𝗿 𝗵𝗼𝘄 𝗺𝗼𝗻𝗲𝘆 𝘄𝗶𝗹𝗹 𝗺𝗼𝘃𝗲 𝗮𝗰𝗿𝗼𝘀𝘀 𝗯𝗼𝗿𝗱𝗲𝗿𝘀. So far USDT and USDC have dominated stablecoin rails - enabling millions across emerging markets to store value, send remittances, hedge against inflation, and access dollar-based finance. Here are just a few figures: 🇳🇬 40%+ of adults in Nigeria have used crypto, primarily stablecoins 🇦🇷 In Argentina, USDT is often easier to get than USD bills and 80% of all tech contractors are paid with it. 🇹🇷 In Turkey, USDT is making up over 50% of total crypto volume, helping locals to escape inflation. But so far everything was USD based. Even in countries that are traditionally closer oriented towards the EUR (think francophone Africa, Ukraine or Turkey). But USDT is not MiCaR compliant and was delisted earlier this year by most exchanges. Now imagine what happens when the Euro enters the ring. EURAU is backed 1:1 by regulated bank deposits, issued by AllUnity, a Frankfurt-based joint venture between Deutsche Bank’s asset manager DWS Group. It’s built for MiCAR compliance, issued on Ethereum, and instantly available via Unstoppable Finance’s Ultimate wallet. This is not a whitepaper. It’s live. Why does it matter? Because we’re approaching a tipping point: Cross-border lending in stablecoins is becoming real FX and remittances could shift to on-chain rails International payroll, B2B payments, and invoice settlement might move faster, cheaper, and more transparently than ever before This won’t just disrupt remittances, FX exchange but also SWIFT itself. It threatens any bank that still sees international payments as a back-office function. 💥 𝗘𝘃𝗲𝗿𝘆 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶���𝗻 𝘁𝗵𝗮𝘁 𝘄𝗮𝗻𝘁𝘀 𝘁𝗼 𝗯𝗲 𝗿𝗲𝗹𝗲𝘃𝗮𝗻𝘁 𝗶𝗻 𝟱 𝘆𝗲𝗮𝗿𝘀 𝗳𝗿𝗼𝗺 𝗻𝗼𝘄 𝗻𝗲𝗲𝗱𝘀 𝗮 𝘀𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆. The era of true borderless Euro-banking has just begun. The future of money is not about currency. It’s about infrastructure. **** Congrats on the launch, Stefan Hoops! Brilliant team 👏 #stablecoins #fintech #banking #eura #fx

Remittances are the new aid and stablecoins are the delivery mechanism. Here's the case I made in Davos: We often talk about development aid as the primary lever for Africa’s growth. But the data tells a different story. Remittances now triple official development assistance to the continent. The real economic engine is people sending money home. The problem has always been the "tax" on that generosity, high fees and slow movement. Sending $100 to Africa often costs about $6 in fees. That is a 6% tax on income that families desperately need. On top of that, settlements can take up to five days. Compare that to Europe, where settlement is under an hour. We are effectively penalizing the people who can least afford it with an archaic system. This is where stablecoins are moving from "niche asset" to essential infrastructure. Cost & Speed: We are seeing costs drop to ~$1 and settlement times shrink to seconds or less. In countries where inflation has hit 20% (about 12-15 nations currently), stablecoins act as a safety net, allowing people to save value in a stable currency via their smartphones, no bank account required. Usage is spiking in Egypt, Nigeria, Ethiopia, and South Africa, driven largely by SMEs who need to keep their businesses moving. One concept we are exploring is an African stablecoin platform backed by Special Drawing Rights (SDRs) rather than just the US Dollar. This would better mirror Africa’s diverse trading partners and reduce our exposure to a single currency's fluctuations. Financial inclusion is about giving people tools that are faster, cheaper, and inflation-proof. Here is my full conversation covering the Stablecoin discussions at WEF 2026 . https://lnkd.in/edPi633G

I spent the past month talking to startups and users in emerging markets to understand how stablecoins are being used in the real world. In Argentina, a 24-year-old software engineer in Córdoba, the country's second-largest city, said she now keeps almost all her savings in stablecoins. To pay rent for their three-bedroom house, she converts her stablecoins into 1.2 million pesos (~$950) each month using Belo, a local crypto app. Across Nigeria, Argentina and Brazil, individuals and businesses have embraced stablecoins to cope with volatile currencies, avoid capital controls and make payments. Startups are emerging to handle fiat-stablecoin conversions. What I observed is a subtle form of dollarization: while day-to-day transactions still occur in local currency, more people are keeping their money in dollar-pegged stablecoins until it is spent. It shows the U.S.'s push to legitimize stablecoins could have far-reaching implications for financial stability and monetary sovereignty in emerging markets. Thanks to Ife Johnson, Pachara (Pinn) Lawjindakul, Nic Carter,Chris Maurice, Jack Chong, Manuel Beaudroit and many others for sharing their thoughts. https://lnkd.in/drAPV46N #stablecoins #emergingmarket #crypto

it’s a mistake to treat stablecoin-powered remittances as just a lifeline for emerging markets. in reality, the absence of a global clearing system impacts nearly every remittance. every day, tens of millions of people send money across borders. not just to send $100 home, but to pay tuition, cover mortgages, support families, or get paid for work. we’re talking about expats, international students, migrant workers, freelancers, and globally distributed teams. a lot of them aren’t unbanked. they’re just stuck with outdated rails and overpaying for it. even with all the progress card networks have made, global settlement still has a timing problem because payments that feel instant can actually take days to settle. most remittance corridors today rely on a web of correspondent banks, clearing houses, FX brokers, and local payout partners. according to the world bank, the global average cost of sending $200 remains around 6.2%, with certain routes (like US to Nigeria or EU to the Philippines) regularly exceeding 8%. and that’s before factoring in delays and settlement risk. these fees and frictions impact Indian engineers in the UK supporting family in Mumbai. Filipino caregivers in Canada sending money back to Cebu. Nigerian founders paying developers across Africa. or Argentine freelancers working for US startups. these individuals are “banked,” yet still underserved by slow, expensive, and opaque systems that weren't designed to deliver instant settlement in today’s global economy. stablecoins, when integrated with traditional finance, fix this. settlement in seconds. minimal fees. no middlemen. funds land directly in local bank accounts or wallets. people get access to dollar-denominated stability if they want it. and they can spend it as they please thanks to platforms like Rain. from London to Lagos, Dubai to Delhi, Toronto to Manila, we’re seeing the same trend. stablecoins sit on top of legacy infra and abstract away its inefficiencies to enable faster, cheaper, and programmable cross-border payments. yes, this helps developing markets. but more broadly, it creates a modern global settlement layer. one that actually fits the needs of today’s mobile, digital, and distributed workforce. the global remittance market is over $800 billion. but even that’s just one slice of the opportunity. stablecoins are about letting anyone, anywhere, pay or get paid in any currency - quickly, affordably, and without friction. that’s a shot at modernizing the entire $150 trillion cross-border payments market. whether it’s payroll, FX, b2b payments, creator payments, or another use case, embedding stablecoin rails under the hood can unlock a step-function improvement in liquidity access, capital efficiency, or time-to-settlement for any team.

Everyone talks about the USD. But the real story in emerging markets is the growing gravity of China. Walk through the Canton Fair in Guangzhou or any wholesale market in Sao Paulo, Lagos, Dubai, and the pattern is obvious: → Goods flow from China. → Payments flow back from Africa, LATAM, and the Middle East. → Banks can’t keep up. → Stablecoins step in. Forget SWIFT. Cross-border SME trade now looks like: - A Peruvian importer paying a Chinese supplier in USDT - A Nigerian trader negotiating prices on WeChat, settling via hawala - An Indonesian buyer using Binance P2P to move value faster than any bank ever could Stablecoins have the opportunity to become a geopolitical neutral settlement rail for South-South commerce. This isn’t hypothetical—it’s happening. And the fintechs who understand this trade layer (logistics, FX, compliance, counterparty risk) will build the next great financial infrastructure company. Because in these corridors, stablecoins aren’t speculative. They are cash, utility and 'just work'. They are shaping a new chapter of globalization—one not mediated by Western institutions.

Correspondent banking is too slow for most companies, but especially international businesses and startups. Earlier this week Y Combinator announced that founders can now choose to receive their $500K in USDC instead of a wire. As Nemil Dalal put it: stablecoin transfers are "often more effective, specifically for founders working in emerging markets.��� He’s right. Because for a founder with a US bank account, this probably doesn't change much. Wires work. But YC backs founders from 50+ countries, and if you are bundling a business in Bogotá or Jakarta or Accra, international wires are a slow, expensive, and unpredictable experience. I've talked to founder friends who have waited over a week for funds to land, while their runway clock is already ticking. Worse, sometimes the correspondent bank holds it for "review" and no one can tell you when it will be released. This is where stablecoins help. Even with onramping and offramping, you're replacing one international wire with two domestic transactions. That's faster, cheaper, and more predictable; a real operational upgrade for founders in markets where correspondent banking wasn't designed to move fast. When you're early-stage, how fast capital lands can be the difference. That's why moves like YC's matter. What's interesting is YC isn't making a crypto bet here. They're making an infrastructure bet. They looked at the two options for getting capital to founders globally and decided to let them choose. And once that choice exists at the top of the startup ecosystem, it trickles down. Founders will start asking: why can't I pay my contractors this way? Why can't I receive revenue this way? Why can't my whole treasury run on these rails? The answer is: they can. That's where I think this goes. A better option exists, and more people will take it. Nice reporting on this by Benjamin Weiss for Fortune: https://lnkd.in/e72cWZVv

Pre-funded accounts have been the hidden tax on global payments for 50 years. Stablecoin infrastructure just made them nearly obsolete. Traditional payment companies immobilize billions in emerging markets just to operate. A single payment corridor requires $1-2M in idle capital sitting in pre-funded accounts. Stablecoin infrastructure transforms this model entirely. • In traditional systems, payment companies must maintain accounts with local currency in each country they serve. When you send money to Nigeria, your money stays in the US while a separate, pre-funded account in Nigeria pays out the recipient. • Stablecoin infrastructure works differently: When a company like Due Network processes a payment to Nigeria, they convert the sender's USD to a stablecoin, then partner with local liquidity providers who already hold Naira and are seeking dollars. • These liquidity providers give the recipient Naira in exchange for the stablecoin—completing the transaction without Due needing to maintain their own pre-funded account. This allows: • New payment companies operating in 20+ markets without holding local currency. • Launching a new payment corridor costs nearly zero (vs $250K+) • Settlement times of 30 minutes (vs 3-5 days) This isn't about blockchain for blockchain's sake—it's about capital efficiency. Robert Sargsian summed this up brilliantly on the latest episode of Stablemined: "You need to price currency volatility to clients and immobilize funds that can't be used for anything else." This inefficiency is why Western Union charges 8-10%. The stablecoin sandwich model (USD → stablecoin → local currency) means money moves in real-time without pre-funding. The results? ➡️ Instant market testing without banking relationships ➡️ 90% less upfront capital required ➡️ Fees drop from 8% to under 1% Financial leaders who grasp this liquidity arbitrage will build the next generation of global payment networks. Everyone else will wonder how their industry's economics were completely upended.

"This paper provides a comprehensive overview of #stablecoins. It discusses market developments, #use_cases, potential #benefits, associated #risks, and the evolving international #regulatory_landscape.   Stablecoin issuance has doubled over the past two years, driven by their use in #crypto trades. The future demand for stablecoins could arise from other use cases supported by enabling legal and regulatory frameworks.   Stablecoins are part of the broader interest in #asset_tokenization. Stablecoins offer several potential benefits. Through tokenization, they could increase #efficiency_in_payments through increased competition.   Stablecoins also carry significant risks related to macro-financial stability, operational efficiency, financial integrity, and legal certainty. Stablecoins may contribute to currency substitution, increase capital flow volatility. These risks could be more pronounced in countries experiencing high inflation, weaker institutions, or diminished confidence in the domestic monetary framework.   The #regulatory_landscape for stablecoins is evolving. The International Monetary Fund (#IMF), the Financial Stability Board (FSB) have issued comprehensive policy recommendations. Many authorities have started implementing international standards, although a fragmented landscape persists. As stablecoins operate globally, this also increases the potential for conflicts between domestic policies, making international cooperation even more essential."   — From: Tobias Adrian, Parma Bains, Marianne Bechara, Eugenio M Cerutti, Stephanie Forte, Federico Grinberg, Alessandro Gullo, Martina Hengge, Kathleen Kao, Tommaso Mancini-Griffoli, Soledad Martinez Peria, Marcello Miccoli, Marco Reuter, Nobuyasu Sugimoto, Understanding Stablecoins, International Monetary Fund. Monetary and Capital Markets Department, Departmental Paper No 2025/009, December 4, 2025   The full paper is here: https://lnkd.in/eUnx9ngV