‘Stablecoins emerge as key players in global payment systems’

Initially designed as cash substitutes for crypto trading, stablecoins still derive significant volume from trading. How has their role evolved?

Stablecoins now function as foundational elements of financial infrastructure, gaining traction among traditional institutions following regulatory advancements like the Genius Act in the U.S. The U.S. Treasury estimates stablecoins could drive $3 trillion in demand for dollars and Treasury securities by 2030. For example, BNY Mellon recently launched a money market fund to manage reserves for compliant stablecoin issuers, signaling broader institutional participation. Asian financial institutions, as noted in industry surveys, increasingly prioritize stablecoins for liquidity management and cross-border efficiency. Regulatory discussions now frame stablecoins as programmable, 24/7 settlement tools, positioning them as critical to modern payment infrastructure.

How are stablecoins being used for real-world payments?

Stablecoins facilitated approximately $32 trillion in transactions in 2024, with cross-border business payments accounting for $5.7 trillion. Data from Artemis shows B2B stablecoin payments grew 30-fold from early 2023 to mid-2025, reaching $3 billion monthly. Projections suggest stablecoins could handle 20% of global cross-border flows by 2030. In response, traditional networks like Visa, Mastercard, and PayPal are accelerating tokenization initiatives. Mastercard’s Multi-Token Network and Visa’s USDC pilots integrate blockchain settlement into existing frameworks, while banks such as JPMorgan and Citi deploy tokenized cash platforms to bypass legacy systems.

Why are stablecoins seen as efficient for cross-border payments?

Stablecoins processed $27.6 trillion in 2024 volumes—surpassing major card networks—and offer faster, cheaper cross-border solutions. By eliminating intermediaries, transactions settle instantly, reducing delays and trimming costs. Estimates suggest businesses could save $10 billion annually by 2030 using stablecoins. Their blockchain-based structure ensures transparency and security, cutting transaction times by 30% compared to traditional methods.

Despite openness to stablecoin frameworks in India, why does the RBI remain cautious?

RBI Deputy Governor T Rabi Shankar has acknowledged digital currencies’ potential in cross-border payments, citing them as a “superior alternative” to banks. Domestically, India’s robust real-time payments system reduces the need for stablecoins. However, rupee-backed stablecoins could bolster India’s trade goals by facilitating rupee invoicing and settlements with partner nations, advancing the currency’s internationalization.

Do stablecoins operate outside formal banking systems, complicating traceability?

No—stablecoin transactions on public blockchains are inherently traceable. Financial institutions like Japan’s major banks are actively developing compliant stablecoins under initiatives like Project Pax to enhance cross-border payments, reinforcing integration with formal systems.

Can tokenized deposits and CBDCs coexist with stablecoins?

Yes. CBDCs, stablecoins, and tokenized deposits serve distinct roles without displacing banks. For instance, European banks like ING and UniCredit introduced a MiCAR-compliant euro-backed stablecoin in 2025. Regulators should foster innovation through sandboxes, allowing stablecoins to complement CBDCs for interbank settlements and tokenized deposits for capital markets. Stablecoins have proven effective in cross-border payments and deserve formal recognition.