Global adoption gathers pace as institutions back digital assets, yet questions over trust, regulation and conversion slow momentum
Stablecoins have moved into the spotlight following the passage of the GENIUS Act in the United States, a landmark law that sets clear standards for issuance, reserve backing and redemption. For a sector long caught in regulatory uncertainty, it marks a watershed moment that could pave the way for mainstream adoption — particularly in cross-border payments.
Pegged to traditional currencies such as the US dollar, stablecoins combine the security of fiat money with the advantages of internet-native infrastructure. They operate around the clock, offer instant settlement and are accessible globally. Yet, despite these benefits, they account for less than 7 per cent of the overall cryptocurrency market, with a market capitalisation of $264 billion, according to CoinGecko. Proponents argue this figure could grow sharply as their use in international payments accelerates.
Disrupting traditional systems
Cross-border payments remain one of the most compelling use cases for stablecoins. Unlike the decades-old SWIFT network and correspondent banking models that dominate the sector, stablecoins promise faster transfers, reduced costs and less paperwork.
For large corporations, high fees and long delays have been tolerated as part of doing business internationally. But smaller businesses, freelancers and contractors — particularly in parts of Asia, Africa and Latin America — are increasingly turning to digital assets. In these regions, access to dollars can be scarce, local currencies volatile and domestic banks poorly connected to global systems.
Remittance providers have begun experimenting with stablecoins to cut costs on prefunded accounts, while multinationals are trialling stablecoin-based treasury flows. Fintech companies are also building platforms to facilitate real-time global settlements using these digital tokens.
Growing institutional support
Financial heavyweights are also exploring the technology. JPMorgan has launched its own stablecoin, Visa is piloting cross-border settlements with USDC, and Mastercard has rolled out a Multi-Token Network for blockchain-based payments. Regulatory clarity is emerging across several jurisdictions, including the UAE, Singapore and the European Union.
Yet adoption is far from seamless. The “stablecoin sandwich” remains a sticking point: while blockchain transfers are quick and inexpensive, users must still convert fiat currency into stablecoins and back again. These on- and off-ramp processes add complexity, cost and regulatory challenges.
The Indian perspective
India, the world’s largest recipient of remittances at more than $129 billion in 2024, highlights both the promise and the pitfalls. Cross-border transfers through SWIFT can take up to three days and carry fees of between 3 and 7 per cent. Policymakers acknowledge the efficiencies stablecoins could bring, but the Reserve Bank of India has stressed the importance of maintaining monetary sovereignty and macroeconomic stability. Instead, the country is focusing on innovations such as UPI-linked remittances and the rollout of its own Central Bank Digital Currency (CBDC).
The road ahead
Operational hurdles also remain, from compliance challenges on 24/7 blockchains to concerns over fraud, money laundering and illicit flows. Policymakers are wary of the risks of dollarisation, particularly in emerging economies where dollar-backed stablecoins could undermine local monetary policy.
Still, the potential is undeniable. Citi Bank projects the global stablecoin market will at least double by 2030. Analysts predict that adoption will spread from consumers to small businesses and eventually to large enterprises.
The tipping point, experts say, will come when corporations treat stablecoins as cash equivalents on their balance sheets. Achieving that will require robust custody solutions, efficient conversion systems and clearer accounting standards.
While the GENIUS Act has set the tone in the US, other regions are developing their own frameworks. For many emerging markets, the challenge will be balancing innovation with financial stability. The trust of users, regulators and institutions will ultimately decide whether stablecoins become the next great leap in international payments.
