Stablecoins: The New Payment Rails for Global Finance

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Crypto for Advisors: Stablecoins: finance’s new railsCoinDesk Indices

What to know:

Stay informed about cryptocurrency with Crypto for Advisors, CoinDesk’s weekly newsletter designed for financial professionals. Get it delivered to your inbox every Thursday by subscribing here.

Today’s newsletter features Sam Boboev of Fintech Wrap Up, who discusses how stablecoins are increasingly being used to process payments in the digital world.

Next, in our “Ask an Expert” segment, we’ll share the most important takeaways for financial advisors from last week’s Consensus conference in Miami. The main topic was the growing involvement of traditional financial institutions – summarized as “Wall Street Comes to Consensus.”

Stablecoins Are Becoming Payment Infrastructure, Not Crypto Assets

Stablecoins initially helped crypto traders quickly switch between different digital currencies without having to convert back to traditional money. However, they’ve evolved beyond that original purpose and now play a much broader role in the financial world.

We’re currently seeing a fundamental change in the stablecoin landscape – how people are using them, who’s using them, and their role in the overall financial system is evolving.

Stablecoins have evolved over the last ten years, going through three key stages. Initially, they helped traders move money quickly between exchanges. Then, as DeFi grew, they became essential for lending, borrowing, and earning rewards within the crypto world. Now, they’re moving into a new phase, shifting their focus from crypto itself to everyday financial activities like payments and managing company funds.

This shift is important because it’s changing what stablecoins are for. They’re moving beyond simply being used for buying and selling crypto; more and more, they’re being used to send money internationally, between businesses, and as part of how companies manage their finances.

This change is easy to explain when you consider how businesses work most efficiently. Old-fashioned international payments depend on a network of banks that act as middlemen, making transactions slower, more expensive, and complicated. It can take days for the money to actually settle, it’s hard to track where the money is, and funds get spread out across different countries.

Stablecoins simplify complex financial processes by offering a single, automated system. They allow transactions to happen almost instantly, 24/7, and easily move money across international borders without relying on multiple banks. This isn’t just a small upgrade for companies managing finances globally—it fundamentally changes how they can manage and use their funds.

The growing use of stablecoins is mainly happening through businesses, not individual consumers. We’re seeing more and more companies use them to pay international suppliers, move money within their own organizations, and manage funds across various markets. This suggests stablecoins are becoming essential for everyday business operations, rather than just being used for risky investments.

The stablecoin market is changing. Initially, growth happened quickly because rules were loose, and getting people to use them was more important than being fully transparent or following regulations. Now, as bigger financial companies get involved, things are shifting. These institutions need to see proof that stablecoins are backed by real assets, have clear and verifiable records, and comply with all relevant regulations before they’ll start using them.

We’re seeing a clear move towards stablecoins that follow the rules and meet high standards, making them easier to use with traditional banking systems. This is causing some companies to merge or exit the market, as people now prioritize trust, openness, and legal compliance just as much as size and growth.

This changes how we should think about stablecoins when looking at the market. While often compared to other cryptocurrencies, they actually compete with traditional financial systems like international bank transfers, credit card processing, and currency exchange. Stablecoins are gaining ground in areas where they offer faster, cheaper, and more flexible solutions.

This doesn’t mean current financial systems will disappear, but stablecoins are likely to become popular for certain types of transactions where they offer clear benefits. Gradually, this could shift value within the financial world, rather than completely replacing what already exists.

Stablecoins won’t just be valuable because of how much money is in them or how often they’re traded. Their true worth will come from how well they’re used in everyday financial processes. The biggest opportunities are in areas like company treasury management, international payments, how financial markets operate, and keeping assets safe – where stablecoins can connect different parts of the financial system.

This situation follows a common pattern in the world of finance. New technologies usually start in areas with fewer rules, quickly grow because they’re more efficient, and then evolve as larger institutions adopt them and regulations are put in place. Stablecoins are now at this stage – their future will depend less on trying out new ideas and more on becoming widely accepted and standardized.

Future growth in this area hinges on successfully blending stablecoins with current financial systems while maintaining essential trust, regulatory compliance, and overall stability. Banks, financial technology companies, and payment processors will be key players in shaping this process and deciding which approaches become widely adopted.

Stablecoins have moved beyond being a minor part of the crypto world. They’re now becoming a key component of how money is transferred, and their future success will depend on how they change the way global finance works, not just on their connection to cryptocurrency.

– Sam Boboev, CEO, Fintech Wrap Up

Ask an Expert

CoinDesk’s Consensus conference was a huge success last week, bringing together 15,000 people from over 110 countries. With more than 300 media representatives, 180 sponsors, and a fantastic lineup of speakers, the event was truly impressive. I was able to speak with many industry experts and advisors while there, and I’d like to share some of my key takeaways.

Q. What stood out this year amidst the rooms filled with advisors?

The focus wasn’t on *what* people were talking about, but *who* was doing the talking. Instead of clients asking about cryptocurrency, this year’s discussions were driven by major players from Wall Street. They made it clear that there’s genuine interest in crypto, the recent launch of ETFs proves it, and there’s increasing pressure to create even more related products.

In the past, adding cryptocurrency to an investment portfolio carried more risk than potential reward. Now, the bigger risk is *not* including it.

Q. What barriers are the big players working through?

Two themes dominated: education and custody.

Financial firms are heavily investing in training programs to educate their advisors about digital assets. These programs, reaching tens of thousands of advisors, cover topics like understanding the products, how they can be used in investment portfolios, and identifying suitable clients for these investments.

Keeping client assets safe, secure, and readily available for trading is a top priority. Before expanding access, we need robust, institutional-level systems to manage and protect those assets.

Q. How are different institutions approaching this?

As someone watching the crypto space, I’m hearing that big institutions are still pretty early in their crypto involvement – around five years in, give or take. And it’s not a one-size-fits-all approach; each company is figuring things out differently based on their own needs and goals.

One large bank is taking a careful approach to digital assets. Instead of immediately offering a wide range of crypto services, they’re starting with a single, focused area to develop expertise and ensure strong governance and compliance. This strategy requires approval from top-level executives and involves close collaboration between teams responsible for compliance, risk management, and preventing financial crimes.

From where I’m sitting, a common strategy I’m seeing is a very cautious rollout. Firms are prioritizing complete internal agreement – making sure everyone from risk management to financial advisors is fully onboard – *before* offering new products or access to clients. The main focus seems to be on making sure it’s appropriate for each client – figuring out who’s ready, how this fits with their existing investments, and how to manage relationships with Registered Investment Advisors.

The takeaway for advisors

Investment firms are increasingly preparing to offer their clients access to cryptocurrency. The focus is no longer *whether* they will, but *how* – with a growing emphasis on training financial advisors, secure storage solutions, and ways to incorporate crypto into investment portfolios. The steps these companies are taking now will largely determine how quickly everyday Americans can easily invest in crypto.

– Sarah Morton

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2026-05-14 18:06