Stablecoins are emerging as an alternative settlement mechanism, as a means for payment efficiency and a definitive use case for blockchain technology. Through updating payment infrastructures, stablecoins are now a payment option within various segments of the ecosystem, from retail cross-border transactions to securities settlement. Additional, institutional adoption is accelerating this transformation, as evidenced by Stripe's $1.1 billion acquisition of Bridge and Visa's integration of USD Coin (USDC) on Solana to enable programmable, faster financial services. Additionally, PayPal’s PYUSD is being leveraged for venture investments, while Paxos’ Global Dollar (USDG) shows how stablecoins can help drive real-world applications. With $203 billion in stablecoin value held by over 131 million users, stablecoins are increasingly useful instruments for facilitating transactions in tokenized asset ecosystems.
Stablecoins are also increasingly being adopted by major corporations as an innovative treasury and payment solution to create efficiencies in cross-border transactions while mitigating foreign exchange risks and reducing costs. For instance, PayPal in 2024 utilized its proprietary stablecoin to pay auditors Ernst & Young via an SAP-provided hub, showcasing the efficiency of blockchain in international payments. Similarly, MoneyGram, in partnership with the Stellar blockchain network, has leveraged stablecoins like USDC for real-time settlements, facilitating seamless global remittances. Robinhood and Kraken have also launched a global dollar stablecoin network, enabling faster and more efficient transfers of stablecoin-backed dollars worldwide. The most notable case is SpaceX, which has used stablecoins in its payment system for Starlink services, particularly in regions with underdeveloped financial infrastructures, allowing local currency payments to be converted into stablecoins and then transferred and exchanged into U.S. dollars.
This shift could be bolstered by the potential for more supportive regulatory frameworks in various jurisdictions, such as anticipated stablecoin legislation in the U.S., which could promote liquidity, compliance, and collaboration. Stablecoins now account for approximately 1% of M2, a key economic indicator of available money for spending and investment, underscoring their macroeconomic impact. Beyond payment modernization, stablecoins are helping to enable innovative financial services, driving financial inclusion, and laying the foundation for a programmable, tokenized economy.
These examples highlight how stablecoins are becoming increasingly useful for corporate cross-border treasury management and payment systems, driving efficiency, and reducing financial complexities.