Stablecoins move closer to the payments mainstream

Stablecoins are rapidly shifting from a crypto-sector instrument to a serious payments proposition, as regulatory change in the United States gives banks and fintechs greater confidence to engage with digital assets.

Stablecoins move closer to the payments mainstream

At Nacha’s Smarter Faster Payments conference in San Diego, industry executives argued that the market is entering a new phase.

The debate is no longer whether stablecoins have a role in payments, but how quickly banks, payment companies and corporate users can integrate them into existing financial infrastructure.

Recent moves by US banking regulators, including the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency, have helped remove uncertainty around banks’ ability to work with digital assets. This could allow more institutions to custody digital tokens, manage stablecoin reserves and develop blockchain-based payment capabilities.

Cross-border payments remain the strongest use case

For Keith Vander Leest, US general manager at BVNK, regulation is important, but it is not the principal force behind adoption. He argued that demand is being driven by long-standing weaknesses in international payments.

Stablecoins offer several characteristics that traditional rails often struggle to combine: near-instant settlement, 24-hour availability, global reach, on-chain transparency and programmability. Of these, speed, always-on access and cross-border functionality are currently doing most of the work.

Domestic instant payment systems such as RTP, Pix and UPI have transformed local transfers, but they remain largely national networks. Stablecoins, by contrast, are designed to move value across borders without being constrained by banking hours, correspondent networks or conventional cut-off times.

That makes them particularly attractive for businesses seeking faster supplier payments, treasury transfers, marketplace settlements and international disbursements.

Banks begin to play catch-up

Others at the conference took a different view, arguing that regulation is now central to adoption, particularly for banks. Alex Treece, co-founder and chief executive of Stablecore, said the collapse of firms such as FTX, Signature Bank and Silvergate had effectively pushed many regulated institutions to the sidelines.

While banks paused digital asset initiatives, non-bank players moved quickly, building platforms and capturing transaction flows. With regulatory barriers easing, banks are now under pressure to respond before they lose deposits, payment volumes and customer relationships to fintech and crypto-native competitors.

A new rail, not a replacement

Barry Goldbrenner, senior counsel for digital assets and fintech banking at Cross River Bank, said demand is coming from both early-stage start-ups and large fintechs. For many clients, stablecoins represent another practical rail for moving money, especially where wires are slow, expensive or operationally cumbersome.

The emerging consensus is that stablecoins are unlikely to replace ACH, cards or wires in the near term. Instead, they are becoming an additional layer in the payments stack: one designed for speed, reach and programmability in a financial system that increasingly expects money to move instantly.