Stablecoins provide the benefits of digital assets and blockchain, while offering price stability too. And attractive use cases are quickly being developed – from more efficient payroll management for globally disparate teams, to improve financial accessibility and stability in emerging markets.
2025 is set to be an important year for the so-called ‘bridge’ between traditional finance and crypto. Regulators, governments and businesses are busy charting the course for stablecoins. What does this mean for those dipping their toes – and those burying their heads in the sand?
Regulation, regulation, regulation
The Markets in Crypto Assets Regulation (MiCA) came into force in Europe recently, setting the tone for future growth. A landmark regulation, MiCA increases legitimacy and offers greater legal certainty for businesses dealing with crypto and stablecoins.
Worldwide, stablecoin rules are taking shape too, with markets like Hong Kong and Singapore leading the pack, and US federal legislation on the near horizon. Once the rules of the game are set and implemented, we’ll no doubt see a surge in players using stablecoins to fix persistent challenges that come from relying on decades-old payment rails.
Commercial use cases
Importantly, traditional financial institutions are no longer just observing from the sidelines.
Visa, for instance, is bridging fiat currencies with blockchain through its Visa Tokenized Asset Platform (VTAP), enabling banks to handle fiat-backed tokens and stablecoins. It has already piqued the interest of Spanish banking giant BBVA, which plans to launch a live pilot with customers this year.
Famously, PayPal launched its own stablecoin to facilitate cross-border transactions and reduce fees for businesses, while J.P. Morgan’s JPM Coin allows large institutions to conduct secure, real-time settlements while improving cash flow and operational efficiency.
One interesting example that’s a bit closer to home is the application of stablecoins within the finance function. With the rise of disparate global workforces, these digital assets offer a way to pay global employees instantly, mitigating exchange rate risks and transaction fees.
The utility of these kinds of solutions is hard to ignore. When BVNK launched its payroll solution in collaboration with a major global HR platform, nearly 8,000 contractors using the platform opted to receive their salaries in stablecoins. Over $25M was processed in the first few months alone.
The future of stablecoins
Crypto is edging closer to the banking industry, and as it does, we will see problems like these being solved in interesting ways. Regulatory approval and growing institutional adoption is set to change things drastically, moving stablecoins from a buzzword to a strategic business imperative.
Declaring 2025 as stablecoins’ breakout year might be a tad premature. However, the momentum is undeniable.
While mainstream adoption will take time, stablecoins are already making financial transactions faster, cheaper, and generally more convenient. And as they do so, they are set to become a foundational layer in the future of payments.
