Stablecoins In Finance

🚨 BREAKING: HSBC and Standard Chartered are about to get Hong Kong's first stablecoin licences. These two banks already print Hong Kong's physical banknotes. Now they'll issue digital ones. --- Hong Kong narrowed 36 applications down to 3 or 4. The HKMA deliberately picked its note-issuing banks first — prioritizing institutional credibility over innovation speed. Standard Chartered built a JV (Anchorpoint Financial) with Animoca Brands and HKT. HSBC surprised everyone — they never even joined the HKMA sandbox. The initial focus is HKD-pegged stablecoins. Hong Kong's Stablecoin Ordinance requires reserves backed exclusively by High Quality Liquid Assets, T+1 par redemptions, client asset segregation, and public reserve disclosures. This is a proper, grown-up stablecoin regime. Approval could come as early as March 24th. --- Artemis data shows China is the second-largest receiver of cross-border stablecoin payments globally. The Singapore-China corridor is the single busiest stablecoin route in the world. USDT on Tron dominates. Low fees. High liquidity. Hard to stop. China's Supreme People's Procuratorate declared using USDT for foreign exchange is illegal. The crackdown on Tether via Tron is intensifying. Stablecoins in China work the way VPNs do. Officially banned. Massively used. --- Hong Kong is building the regulated front door to the world's biggest unofficial stablecoin market. The stablecoin market crossed $312 billion this month. $33 trillion in transactions last year. Citi projects up to $4 trillion in supply by 2030. When your note-issuing banks become your stablecoin issuers, stablecoins begin to matter MUCH MUCH More in the global cross border conversation.

Ten years ago, stablecoins barely existed. Today, they rival traditional payments infrastructure. To understand why, we need to take one step back. Stablecoins are addressing one major problem: we live in a digital world where everything happens in real time — except money. It remains slow, fragmented, and full of friction. 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻𝘀 𝗮𝗿𝗲 𝗰𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝘁𝗵𝗮𝘁. They make money native to the internet — borderless, always on, and programmable (money that can move automatically when certain conditions are met). Value can now move as freely as information: instantly, globally, and without the intermediaries that slow everything down. That’s why adoption has accelerated — according to recent research from a16z crypto: • Stablecoin transaction volume grew by 106% over the past year, reaching $46 trillion. • $46 trillion is a big number — for comparison, Visa processed around $16 trillion, while the ACH network (the U.S. bank transfer network) handled about $87 trillion. • Not all that activity reflects real payments. A significant portion comes from automated transactions — bots, exchanges, or internal transfers that inflate totals. • On an adjusted basis, which filters out non-organic activity, stablecoin volume is closer to $9 trillion — still over five times PayPal’s payment volume and more than half of Visa’s. • Adoption keeps climbing: monthly adjusted volume reached $1.25 trillion in September 2025, signaling real, non-speculative use. 𝗗𝗼𝗲𝘀 𝘁𝗵𝗮𝘁 𝗺𝗲𝗮𝗻 𝘀𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻𝘀 𝗮𝗿𝗲 𝗿𝗲𝗽𝗹𝗮𝗰𝗶𝗻𝗴 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗿𝗮𝗶𝗹𝘀? Not quite — at least, not yet. What we’re seeing isn’t replacement, but early-stage evolution. Stablecoins are forming a parallel layer, filling gaps traditional rails weren’t designed for: • Cross-border transfers that settle in seconds instead of days • 24/7 settlement, unconstrained by banking hours • Open access, letting anyone with an internet connection hold and move value globally But it’s still early. The ecosystem has plenty to prove. Stablecoins still need to: • Gain regulatory clarity — even with progress like the U.S. Genius Act, global rules remain uncertain • Build trust and usability — the experience is still too technical for most users • Ensure transparency and reserves — tokens must be fully backed and audited • Improve interoperability — seamless transfers across blockchains So while stablecoins aren’t replacing traditional rails, they’re testing the boundaries of what global payments could look like and are potentially creating an infrastructure layer designed for the modern economy. Opinions: my own, Graphic source and numbers: a16z crypto 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

Having built fraud systems transacting billions at Coinbase and Sardine, want to share something about the stablecoin gold rush that nobody's talking about. I’ve been a believer in on-chain finance since 2015, when Rob Witoff, Olaf and Brian Armstrong asked me to help build the most compliant, good-actor in the crypto industry: Coinbase. In 2025, the world is talking about stablecoins since Stripe acquired Bridge, and volumes exploded. However, This week, Airwallex's CEO, Jack had a thought provoking post on stablecoins which got the industry talking. Airwallex are a major player in cross-border money movement. And Jack’s point was that not all cross-border transactions need stablecoins. In particular, not in G10 currencies as FX spreads are thin and payments are already instant. But here's where it gets interesting… Artemis just released data showing 400% YoY growth in B2B stablecoin payments. The growth isn't happening where you think: ✅ Long-tail markets where traditional banking breaks down ✅ "Exotic" FX pairs that cost 5-8% in traditional rails ✅ Corporate treasury ops that need 24/7, instant settlement Everyone sees the Stripe-Bridge acquisition and thinks "should I be involved?" What they don't see: the compliance nightmare. I can tell you the risks are massive: - Global by default = some of those regions could be high risk - Sanctioned regions are nearly impossible to identify when recipients are just wallet addresses - Mixing on-chain and off-chain AML checks? Good luck. - Your KYC is only as strong as your weakest market or counterparty Often, stablecoins are treated as cash-like, but most payments and fraud ops teams aren’t set up to work that way, The companies that figure out compliance first can capture the stablecoin opportunity. The ones that don't will become cautionary tales. If you're building in this space, the fraud and compliance piece isn't optional. It's critical. Thoughts? 👇

Have Digital Currencies Hit Product-Market Fit Yet? Stablecoins reached $270B market cap with $26T transaction volume. Yet, only 1% involves real-world payments. The infrastructure is ready, but adoption remains concentrated in crypto trading. Just analyzed BCG's deep dive into digital currency mainstreaming, and the data reveals a critical inflection point most are missing. ↳ Stats that demand attention: - Stablecoin market cap grew 57% year-on-year to $210B by end 2024, reaching $270B by August 2025 - Turkey processes $38B annually in stablecoin volume - 4.3% of GDP, highest globally - Nigeria's USDC transactions jumped 412% year-on-year, exceeding $3B monthly - Tokenized real-world assets grew 4x in two years to $28B market capitalization - J.P.Morgan's Kinexys processed $1.5T in corporate transactions with $2B daily volume - Global South driving adoption in corridors where speed and USD access create value ↳ Three insights reshaping digital money: 1/ Infrastructure-Adoption Gap Narrowing • Technical rails proven at scale - $26T transaction volume demonstrates capacity • Real-world usage concentrated in high-inflation, unstable currency markets B2B cross-border payments growing 30x in two years • Corporate treasury applications emerging through platforms like SpaceX-Bridge integration 2/ Regulatory Clarity Accelerating Momentum • GENIUS Act & Digital Euro • MiCA in EU, GENIUS Act in US, stablecoin frameworks in Hong Kong/UAE building confidence • Central banks advancing CBDCs • Banks exploring tokenized deposits as regulatory-aligned alternative to stablecoins 3/ Geographic Divide in Adoption Patterns • Heaviest usage in Global South where USD access, remittance costs, inflation create demand • Developed markets seeing corporate/wholesale applications before retail adoption • Cross-border use cases proving strongest PMF initially • "Stablecoin sandwich" model emerging as foundation for Banking-as-a-Service 2.0 ↳ My Take: 1/ Distribution Remains King: The winners control last-mile access, not the underlying tech. Stablecoin issuers face the same distribution challenge that constrained early digital wallets. 2/ Corporate Treasury is the Wedge: B2B adoption will drive mainstream acceptance before retail. Complex corporate needs justify infrastructure investment. 3/ Sovereignty vs Efficiency Trade-off: Dollar-denominated stablecoins create de facto dollarization, while CBDCs assert monetary sovereignty. This tension will define adoption patterns by geography. Banks' Stablecoin Strategy Dilemma: • Traditional banks face "innovate or intermediate" decision. • Supporting stablecoin issuers through custody and FX services captures value without balance sheet risk. • Direct issuance risks deposit disintermediation but offers control. Which factor will most accelerate mainstream stablecoin adoption? A) Regulatory clarity B) Corporate treasury adoption at scale C) Global South retail payment usage D) Banking infrastructure integration

🔴 Stablecoins are not a threat but an opportunity for short-term funding markets: papers from the Banque de France & the ECB👇 This article published in the Journal of International Money and Finance was authored by Jean Barthelemy from the Banque de France, together with Paul Gardin and Benoit Nguyen from the European Central Bank. 👉 They analyze the impact of the exponential growth of stablecoins on the financial assets backing their reserves, namely the short-term funding market. 🎯 Why does this matter? Because it touches directly on economic stability, raising a central question: could stablecoins destabilize the short-term funding available to corporates and financial institutions… …and, in turn, the very structure of the money market? 1️⃣ First finding: their growth did not affect market rates Between 2020 and 2022, the market capitalization of USD-denominated stablecoins grew from $5 billion to $150 billion, driven primarily by Tether and Circle. At that time, interest rates were very low, which pushed issuers to hold commercial paper (CP) as part of their reserves → By June 2021, Tether alone is estimated to have held over $31 billion in CP. 👉 According to the authors, addressing a common concern among regulators, these massive purchases did not affect CP market rates → Spreads remained unchanged despite the sudden and substantial increase in demand. Why? Because token mint/burn activity (i.e., circulating supply) is publicly observable onchain. This real-time transparency allows CP issuers to anticipate stablecoin-related demand and adjust their issuance accordingly. The paper shows empirically that the supply of CP (and later T-bills) adjusts smoothly and fully to stablecoin purchases, at least up to 2% of the total outstanding USD short-term asset market. 👉 This finding contradicts a recent BIS paper, which argues that stablecoins cannot adjust elastically because they must acquire reserve assets in order to issue new tokens, and therefore cannot function as an “elastic” form of money. According to the authors, these conclusions also apply to the T-bill market, which now makes up the vast majority of stablecoin issuers’ reserves, driven by safety considerations, rising interest rates, and emerging regulatory frameworks (GENIUS, MiCA, etc.). 2️⃣ Stablecoins are no longer just crypto instruments 👉 The paper describes issuers as full-fledged participants in short-term funding markets, and as such, they should be viewed as potential strategic investors. They are no longer just crypto curiosities, they are the first actors enabling researchers to study the convergence between the digital-assets universe and traditional finance. 👉 Link to the paper in the comments below At Blockstories, we’ll be following this closely 👀 — You can subscribe in the comments as well👇

Stablecoin Payments: From Fringe to Financial Infrastructure The latest report from Castle Island Ventures, Dragonfly and Artemis reveals the growing role of stablecoins in real-world payments across sectors and regions. Here are 5 key insights: 1. $94.2B in Payments – And Counting - $94.2 billion in stablecoin payments were settled between Jan 2023 and Feb 2025. - As of Feb 2025, payments are annualizing at a $72.3B run rate. - B2B leads with $36B/year, followed by P2P ($18B), card payments ($13.2B), B2C ($3.3B), and prefunding ($2.5B). 2. B2B Is the Breakout Use Case - B2B transactions grew from <$100M/month in early 2023 to $3B/month in early 2025. - High-value transfers dominate: average transaction size exceeds $219K on both Tron and Ethereum. - USDT commands most volume, but USDC holds ~30% share in B2B flows. 3. USDT & Tron Reign Supreme - USDT has ~90% market share among surveyed firms; USDC is a distant second. - Tron is the most-used blockchain for stablecoin settlement, followed by Ethereum and Binance Smart Chain. - In every region (Europe, Africa, Asia, Latin America), USDT + Tron is the dominant combo. 4. Cards, Payroll & Micro-Transfers Go Crypto - Stablecoin-linked card payments surged from $250M/month in early 2023 to $1B/month by end of 2024. - B2C payments (payrolls, disbursements) topped $300M/month by early 2025. - Peer-to-peer transfers average <$50 per transaction, beating traditional fees (e.g., Zelle ®: $277 avg.). 5. Stablecoins Are the New Cross-Border Rail - US, Singapore, and Hong Kong lead in stablecoin sending volume. - The Singapore–China corridor is the most active globally. - Platforms like Yellow Card and Bitso are replacing Swift for B2B and remittances in Africa and LatAm. So What? - Stablecoins are no longer just for trading — they’re becoming the internet’s native money for business, payroll, remittances, and everyday payments. - With $2T+ in supply expected by 2028, regulators and enterprises alike must reckon with a new era of programmable, dollar-denominated value transfer — 24/7, instant, and borderless. Great work Anthony Yim, Andrew Van Aken, Nic Carter, Wyatt Khosrowshahi, Rob Hadick and Omar Kanji, CFA

The architecture of cross-border payments is shifting — and it’s no longer just about speed. It’s about programmability, transparency, and compliance by design. Circle newly launched Payments Network (CPN) is not a minor enhancement to legacy systems — it’s a fundamentally different model. One where regulated stablecoins (USDC, EURC) act as digital cash, settlement is near-instant, and participants are governed by enforceable standards. How does CPN stand apart? • Value transfer, not just message exchange • Settlement finality in seconds, not days • No reliance on correspondent banking chains • Full transparency with on-chain audit trails • Compliance-embedded — KYC, AML, cybersecurity built into the network design It’s a network where every transaction is verifiable, programmable, and borderless — opening new possibilities for real-time treasury, trade, and payments innovation. As someone deeply engaged with ISO 20022, structured data, and the future of regulated payments infrastructure — this evolution is both timely and necessary. The question isn’t whether these networks will coexist. It’s whether traditional rails will keep pace with programmable money. Biju Nicolas Pinto Sam Boboev #payments #financialservices #swift #stablecoins #cbdc #treasury #iso20022 #blockchain

💸 Stablecoins aren’t the future of payments. They’re the present. And it’s happening quietly — from the ground up. The report maps a clear picture of what’s actually happening with stablecoin payments — and it’s not what most people think. ❌ This isn’t about traders swapping tokens on-chain. ✅ It’s about real-world payments. $94.2 billion in stablecoin-based payments were processed by 31 firms between Jan 2023 and Feb 2025 — everything from B2B settlements to prepaid cards and cross-border payroll. By Feb 2025, the run rate hit $72.3 billion annually. That’s not theoretical scale — that’s PayPal size territory. Things That Stood Out for me in the report ✳️ It’s a USDT-on-Tron world: ~90% of stablecoin payments in the study are in Tether (USDT), with Tron leading the chain race across LatAm, Africa, and Asia. Ethereum and USDC? Still used, but they’re trailing 🔍 So what? This isn’t about elegant infrastructure. It’s about fast, cheap, and reliable rails — and Tron+USDT are winning where it counts: on user adoption. ✳️ B2B payments are eating stablecoins. From <$100M/month to >$3B/month in under two years. Stablecoins are being used to pay suppliers, contractors, and even manage treasury 🔍 So what? This is no longer a retail-only tool. Enterprises are integrating stablecoins into core operations — bypassing traditional cross-border systems. ✳️ Remittances are being rebuilt — silently: Corridors like India, Nigeria, and Mexico are increasingly using stablecoins instead of high-fee wire services or remittance apps 🔍 So what? For the first time, we’re seeing remittance flows that don’t touch SWIFT, Visa, or even banks. This is the parallel payments system in action. ✳️ Cards are the bridge to the mainstream: Monthly volume from stablecoin-linked cards surpassed $1B, and users are spending just like they would with Visa or Mastercard 🔍 So what? Stablecoins aren’t just held — they’re spent. This changes how we think about crypto: not as an investment class, but as a medium of daily exchange. ✳️ This is shadow infrastructure for the dollar: If stablecoins were a country, they’d be the 14th largest holder of U.S. Treasuries. Tether and Circle are essentially private extensions of the U.S. dollar abroad 🔍 So what? The U.S. may not have launched a CBDC, but stablecoins are already exporting the dollar — faster, further, and frictionlessly. So much got de-dollarisation 🤣🤣🤣 📌 Final thought: If you’re still filing stablecoins under “crypto hype,” you’re missing the infrastructure story unfolding right under your nose. Ignore it, and you’ll miss the next payments rail. Joseph Salim Mohammad Fope Dmitri Nicolas Atul Metin Mehdi Maha Dominic Miray #Stablecoins #Payments #Fintech #USDT #B2BPayments #Remittances #DigitalDollar #CryptoInfrastructure #Web3Finance #Tron #USDC #FinancialInclusion #EmergingMarkets #Paytech

Stablecoins are no longer an experiment. They are part of the operating infrastructure of global finance. Today, Venturebloxx and Finance Loop - Alliance for on-chain finance publish: Stablecoins: The Operating Layer for Global B2B Payments 2026 I contributed to this report alongside Panagiotis Kriaris’ FinTech Newsletter, my own Fintech Wrap Up, London Blockchain Conference, and industry partners including Januar, Utila, Range, and Depa. ____ Why this report matters Global payments are no longer about choosing one rail. They are about orchestrating multiple rails based on corridor economics, liquidity timing and cut-offs, regulatory perimeter, and reconciliation and audit requirements. Stablecoins are not replacing traditional rails. They are reshaping how global value moves. As adoption matures, they increasingly function as embedded infrastructure inside banking, PSP, and enterprise payment stacks rather than as standalone crypto features. Facts and figures (late 2025 / early 2026) ~$27T+ annualised stablecoin settlement volume ~$300–310B fiat-backed stablecoin market cap ~$16.5T–$23.7T stablecoin-addressable B2B payments TAM Stablecoins now represent roughly 30% of on-chain transaction activity. Euro stablecoins have exceeded €500M market cap. LatAm payment corridors recorded ~9× growth in stablecoin flows. Major production deployments already live - Visa: multi-stablecoin settlement across USD stablecoins and EURC - Stripe: USDC acceptance and stablecoin-linked financial accounts in 100+ countries - Checkout.com, Worldpay, Nuvei: merchant settlement in stablecoins - PayPal (PYUSD): merchant settlement and B2B expansion - JPMorgan (JPM Coin): $1B+ per day in tokenised deposit flows Qivalis consortium: regulated, bank-issued stablecoins in Europe What readers get A breakdown of real, production-grade use cases across banks, PSPs, platforms, and enterprises. In addition: - Corridor scorecards across LatAm, Sub-Saharan Africa, MENA, and Southeast Asia. - Ecosystem maps. - Regulatory frameworks. - Operating and monetisation models for banks, PSPs, and fintechs. 👉 Download the report. Link in the comments. Kudos to all the people contributing to this report: Bentzi Rabi Marcus Mølleskov Alberto Martín Mazaira Javier Perez Marta Maryam Rozsa Michael Wutzke Max Engelen Surya Deepan Elango Joshua Weiss, CAIA Kristoffer Nystrom Simon Ousager Rasmus Bjerregaard Carles Reina Carles Castillo Valiente Arnoud Star Busmann Patrick Hennes Paula Pettit #stablecoins #payments #fintech