Stablecoins have the potential to play a significant role in the financial landscape by providing businesses with the ability to leverage blockchain technology without the volatility of traditional cryptocurrencies. Stablecoins are becoming a tool that has the ability to reshape how companies, from startups to global enterprises, manage their digital transactions. This article explores why stablecoins can be effective, their current applications, their market and regulatory status, future prospects, and associated risks.
Why Are Stablecoins Effective for Businesses?
Stablecoins have the ability to address key challenges for companies, appealing to CFOs and entrepreneurs through their efficiency and reliability. Here’s why they are gaining traction:
Global Access With Limited Barriers
Stablecoins facilitate instant, direct transactions worldwide requiring only an internet connection and a digital wallet, bypassing the delays, paperwork, and intermediaries often associated with cross-border payments. This efficiency supports businesses engaging in global trade. In regions with limited banking infrastructure, stablecoins may facilitate participation in the global economy without the need for a traditional bank account. This accessibility supports economic inclusion, particularly in emerging markets where stablecoin use is rapidly growing for cross-border payments and wealth preservation.
Cost Efficiency Compared to Traditional Methods
Traditional payment methods, such as credit cards or wire transfers, incur high fees that cut into profits. Stablecoin transactions, by contrast, often cost a fraction of the price of traditional payment methods, allowing businesses to retain more revenue. In addition, the near-instantaneous settlement of stablecoin transactions eliminates the clearing time associated with checks, and the finality of stablecoin transactions eliminates concerns associated with non-sufficient funds (NSF) remittances and chargebacks. Each of these elements combined makes stablecoin payments a potentially less costly, more efficient, and safer payment option for businesses.
Price Stability in a Volatile Market
Unlike traditional cryptocurrencies, such as bitcoin and ethereum, which experience significant price fluctuations, stablecoins are designed to maintain consistent value, typically pegged to assets like the U.S. dollar. Global regulators have emphasized the importance of robust reserves to maintain this stability, with many major jurisdictions imposing reserve requirements. This reliability makes stablecoins an alternative payment option for businesses.
Stablecoins in Action: Streamlining Business Operations
Stablecoins are actively transforming how many companies manage financial transactions. Below are examples of their applications:
Vendor Payments
Paying global vendors can be complex, often requiring multiple banks (sending bank, correspondent bank, and receiving bank) and currency exchanges1 resulting in a slow and costly process. Stablecoins like USDC (Circle) or USDT (Tether), pegged to the U.S. dollar, settle transactions quickly on a blockchain that transcends national borders. As a result, stablecoin transactions have much lower fees, and vendors transfer payments in a single currency with near real-time effect, allowing them to receive the agreed amount. This helps businesses maintain cash flow and reduce expenses.
Real-World Example: Mercado Libre, Latin America’s largest e-commerce platform, has adopted USDC to pay suppliers in Brazil and Mexico. Using stablecoins, they’ve streamlined payments and lowered transaction costs compared to bank transfers, enhancing operational efficiency.2
Customer Transactions
Accepting stablecoins allows retailers and platforms to reduce costs and attract tech-savvy customers. Unlike credit card payments, where businesses bear interchange fees, stablecoin transactions shift costs to customers and settle rapidly on blockchain networks, supporting profit margins and offering a modern payment option.
Stablecoins also appeal to global customers who value the transparency and security of a blockchain. They simplify international purchases by eliminating currency conversion challenges, enhancing the customer experience.
Real-World Example: In March 2024, Compass Coffee, a local coffee shop in Washington, D.C., partnered with Coinbase to offer patrons the option to pay for their drinks using the stablecoin USDC. In 2022, it is estimated that $126 billion in credit card fees were paid by U.S. merchants, which is 2.5 times the entire U.S. coffee shop market. Compass Coffee says it currently loses approximately 3.75% of its revenue to credit card companies through additional fees. By accepting USDC, Compass Coffee could save a substantial amount of these fees.3 The move to accept USDC also attracts tech-savvy customers who are typically more comfortable with blockchain technology and cryptocurrencies.
Contractor Payment Processing
Paying global teams can be a headache for businesses, with expensive wire transfer fees and exchange rate losses eating into budgets. Stablecoins streamline the process by enabling instant, low-cost transfers across borders. Contractors typically receive payment for services in full, without deductions from bank fees and conversion losses. For a company with remote workers in multiple countries, this means payroll becomes faster and more cost-effective, allowing funds to hit workers’ wallets in seconds or minutes rather than days.
This approach can boost contractor satisfaction and trust. Workers, especially ones in regions with volatile local currencies, appreciate getting paid in a stable, reserve-backed asset that holds its value. Businesses can benefit from simplified accounting and reduced reliance on slower traditional banking systems, thus, keeping their teams happy, and allocating saved resources for growth instead of wasteful fees.
Real-World Example: In December 2024, Remote, a global HR platform, partnered with Stripe to offer USDC payments to contractors in 69 countries through Coinbase’s Base blockchain. This addressed demand from international workers, reducing costs and providing near-instant payouts, which strengthened trust and efficiency.4
Supply Chain & Trading Efficiency
For wholesalers and traders, delays in payment clearing can disrupt cash flow. Stablecoins settle transactions rapidly on blockchain networks, giving businesses access to funds quickly so as to pay suppliers and reinvest without delays, thus improving operational efficiency.
Managing payments across global supply chains can be a logistical nightmare. Dealing with multiple currencies, fluctuating exchange rates, and slow banking systems often leads to delays and unnecessary fees. Stablecoins offer a smarter solution, enabling near-instant transactions on blockchain networks—no matter where suppliers are located. For a manufacturing company sourcing materials from Asia, Europe, or South America, this means paying suppliers in minutes instead of days. Beyond speed, stablecoins bring predictability and reliability to an otherwise complex system. Plus, blockchain’s transparency allows for transactions to be traceable, strengthening trust between business partners.
Real-World Example: DP World, a multinational logistics firm, is using stablecoin-powered payments to enhance supply chains. Smart contracts automate payments upon delivery, helping ensure quality and timeliness while reducing disputes. This improves transparency and aligns with DP World’s goal of efficient global trade.5
What Exactly Are Stablecoins?
Stablecoins are cryptocurrencies typically designed to maintain stable value, avoiding the price volatility typically seen in traditional cryptocurrencies such as bitcoin or ethereum. The value of stablecoins is typically pegged to assets like a fiat currency (such as the U.S. dollar), gold, or a basket of assets or currency, or their value is established through the use of algorithms to balance supply and demand through smart contracts. This stability makes them a potential option for businesses seeking blockchain’s speed, transparency, immutability, and decentralization with less risk of volatile price fluctuations.
The Stablecoin Lineup: Four Types to Know
Stablecoins come in four varieties, each with a distinct approach to maintaining stability.
Where Are Stablecoins Now?
Cross-border payments reached $45 trillion in total volume in 2023, which resulted in $54 billion in global remittance fees.8 Of the $2.3 trillion of organic stablecoin volume in 2023, roughly $843 million is estimated to have been used for cross-border payments, cementing global remittances as a key use case for stablecoins.
As of March 2025, stablecoins are a critical component of the cryptocurrency ecosystem, with a total market cap that has surpassed $200 billion. In 2024, the annualized transaction value of stablecoins hit $15.6 trillion, roughly the same amount as Visa and double that of Mastercard.9 This number is up from $10.8 trillion in 2023. SpaceX is using stablecoins to repatriate funds from Starlink sales in countries with volatile local currencies like Argentina and Nigeria.10
Both Visa and Mastercard are fully aware of the threat stablecoins may impose on their business. Visa announced in April 2025 that they would be offering stablecoin-linked cards.11 Mastercard followed suit just a couple of weeks later.12 Visa also offers a stablecoin market data dashboard on their website.13
Regulation
Global regulation is evolving to address stablecoins’ growing role. The EU’s Markets in Crypto-Assets (MiCA) framework, effective late 2024, imposes strict reserve requirements and transaction caps on issuers, serving as a global standard. Singapore and Hong Kong have established similar frameworks, while the United Arab Emirates (UAE) mandates reserves in licensed banks with monthly audits. The U.S. has yet to enact federal legislation, though proposed bills like the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act from the House and the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act from the Senate aim to regulate reserves and clarify stablecoins’ legal status.
Where Are Stablecoins Going?
Stablecoins are positioned for significant growth, with projections indicating a potential multitrillion-dollar market in the coming years. A clear regulatory framework in the U.S. could drive substantial increases in circulating supply and transaction volume, driven by demand for efficient, cost-effective payments.
Future Trends
- Wider Adoption: Companies like PayPal, Stripe, and Bank of America are preparing to integrate stablecoins further as the U.S. regulatory framework is clarified. Stablecoin-based financial accounts will provide increased global access to financial instruments, particularly in underbanked regions.
- Global Regulatory Coordination: International efforts are fostering consistent frameworks, with the EU’s MiCA as a model. Standardized reserve reporting, liquidity requirements, and anti-money laundering (AML) compliance may lead to further trust and adoption within the market.
- Decentralized Finance (DeFi) & Cross-Border Growth: Stablecoins will continue to play a large role in DeFi, supporting decentralized applications, and become a standard for cross-border payments, especially in emerging markets where they outperform some of their traditional systems.
- Mainstream Integration: We may soon see stablecoins embedded in digital wallets and banking apps, increasing retail and institutional use.
Challenges
Regulatory uncertainty in the U.S. could hinder progress if overly stringent measures are enacted that discourage issuance. Algorithmic stablecoins face skepticism following TerraUSD’s collapse, with potential bans on new ones under consideration.
Risks of Using Stablecoins
Stablecoins offer significant benefits but come with risks that businesses must address:
- Reserve Transparency: Inadequate or low-quality reserves could lead to depegging, as seen with TerraUSD’s $18 billion collapse in 2022. Regulatory demands for audited reserves aim to address this, but challenges may still persist.
- Regulatory Uncertainty: Diverse global regulations create compliance complexities. In the U.S., pending legislation may impose bank-like requirements, with non-compliant issuers risking penalties. Businesses also must adapt to evolving compliance rules and regulations.
- Liquidity Risks: If issuers cannot honor redemptions during market stress, stablecoins could lose their peg, potentially causing market disruptions. Sound liquidity risk management is a necessity.
- Financial Crime: Stablecoins are vulnerable to money laundering and fraud just like other payment systems. Blockchain analytics can help, but the implementation of anti-money laundering (AML)/know your customer (KYC) measures are necessary to help mitigate legal risks.
- Systemic Risks: As stablecoins integrate with banks, DeFi, and the broader financial markets, the failure of a major stablecoin issuer could impact the financial system with the risk growing as stablecoin adoption grows.
How Can Businesses Acquire Stablecoins?
Acquiring stablecoins can be straightforward, with options suited to business needs:
- Centralized Exchanges: Platforms like Coinbase or Binance allow purchases, requiring AML/KYC compliance, e.g., business registration, ID for representatives.
- Fiat Onramps for Self-Custody: Stripe, MoonPay, and Ramp enable businesses to buy stablecoins with fiat and deposit them into self-custody wallets.
- Fiat Deposits With Issuers: Issuers like USDC allow businesses access to a suite of APIs and tools designed for integrating stablecoin payments into business operations, such as accepting card payments that can settle into USDC.14
- DeFi: Businesses can acquire stablecoins through liquidity pools or lending platforms. Accepting stablecoins for goods or services is another option.
Onboarding stablecoins may be a way to reduce costs, improve settlement times, and leverage transparency that blockchains offer, but these do not come without risks. Custody and counter-party risk is one example of risk that businesses should consider.
Conclusion
Stablecoins may be a resource for businesses seeking efficiency, cost savings, and global reach. With a market cap around $200 billion and increasing adoption, these digital assets are reshaping payments, payroll, and supply chains. Evolving regulatory frameworks promise greater reliability, while future growth could position stablecoins as a significant part of global finance. However, risks such as reserve concerns, regulatory challenges, and systemic issues require careful consideration. For businesses, stablecoins may provide an opportunity to help streamline operations and reduce costs, provided they navigate the associated challenges thoughtfully. If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.
Related reading: Key Considerations for Protecting Crypto Assets
- 1“Feasibility of Cross-Border Electronic Funds Transfer Reporting System Under the Bank Secrecy Act: Appendix D – Fundamentals of the Funds Transfer Process,” fincen.gov, October 2006.
- 2“Mercado Libre: The Digital Backbone of Latin America,” quartr.com, January 3, 2025.
- 3“Local Coffee Chain in DC Teams Up with Coinbase to Accept Crypto Payments,” cryptonews.com, March 21, 2024.
- 4“Remote Teams Partners with Stripe for Compliant Stablecoin Payouts,” hrtechpub.com, December 17, 2024.
- 5“Stablecoins: The Next Revolution in Global Supply Chains,” transportandlogisticsme.com, January 29, 2025.
- 6“A guide to stablecoins: What, why, and how,” a16zcrypto.com, April 25, 2025.
- 7“Stablecoin Market Cap Tops $200B as U.S. Sees Industry Helping Maintain Dollar Dominance,” coindesk.com, March 10, 2025.
- 8“Stablecoins and the New Payments Landscape,” coinbase.com, August 5, 2024.
- 9“ARK Invest Big Ideas 2025,” research.ark-invest.com, February 4, 2025.
- 10“Stripe Annual Letter 2024,” assets.stripeassets.com, February 27, 2025.
- 11“Visa and Bridge Partner to Make Stablecoins Accessible for Everyday Purchases,” usa.visa.com, April 30, 2025.
- 12“Mastercard and MoonPay team up to mainstream stablecoin payments,” mastercard.com, May 15, 2025.
- 13“Stablecoin Transactions,” visaonchainanalytics.com, 2025.
- 14“Circle announces launch of APIs for businesses to adopt USDC stablecoin,” theblock.co, March 10, 2020.