Stablecoins: From Headline Growth to Real-World Utility
Author: Lux Thiagarajah, Chief Commercial Officer, OpenPayd
Stablecoins’ growth trajectory continues to break records. As I noted in my recent blog on the “Distribution Decade,” transaction volumes surpassed Mastercard and Visa combined in 2024. But the real question is what’s driving this growth, and what needs to happen before stablecoins become a standard part of every business’s payment mix?
What factors are behind stablecoin growth?
Growth is being fuelled from two directions.
The first is regulatory clarity. Over the past 24 months, we’ve seen major progress worldwide. Europe’s Markets in Crypto-Assets (MiCA) framework came into full effect in December 2024, and in the U.S., the GENIUS Act - introduced in 2023 - is shaping a federal framework for payment stablecoins. This wave of regulation has given institutions the legal certainty they needed to start building.
It's no secret that the UK has been slower on regulatory progress. The UK has an opportunity to build upon and align what we have seen with MiCA and the Genius Act. A slow framework can be forgiven if it's aligned with other jurisdictions; if it isn't, the UK risks being left behind and seeing innovation migrate to more favourable jurisdictions.
Stablecoin growth has also been influenced by the decline of correspondent banking capacity, especially across Asia, LATAM and Africa. Businesses and individuals in these regions often face restricted access to offshore dollars, slow settlement and high fees. Stablecoins have quickly become an alternative for moving value across borders, not just for trading or collateral purposes. We’re seeing this shift first-hand at OpenPayd, as more businesses turn to stablecoins as a practical, faster way to transact globally.
The use cases driving stablecoin adoption
The most significant adoption is happening outside of digital asset verticals, with financial institutions integrating stablecoins as part of their cross-border payment infrastructure and treasury operations, using them to fund accounts, settle transactions, and manage liquidity across currencies and time zones. Interestingly, we’re seeing early growth in stablecoin-based payroll. For global organisations with distributed teams, using traditional cross-border payments for salaries can take days and incur unpredictable costs. Stablecoins change that. Settlement happens in minutes, with full cost transparency.
The same logic applies to remittances. The global average cost to send $200 remittance is still above 6%, and in some corridors it’s rising, not falling. Stablecoins offer a faster, cheaper alternative, especially for emerging markets where access to financial infrastructure remains limited.
The emerging use cases for stablecoins
Currency stability in volatile markets
In many emerging markets, foreign exchange (FX) exposure isn’t just a business challenge; it’s a daily reality. Local currencies such as the Turkish Lira or Argentinian Peso have seen double-digit annual volatility, eroding savings and complicating trade. Access to offshore US dollars (USD) remains limited, pushing businesses to search for stability elsewhere.
Stablecoins are increasingly filling that gap. By holding wealth in a fiat-backed digital dollar, people can protect themselves against currency devaluation while maintaining access to a globally accepted store of value. For many, stablecoins have become more than a financial instrument; they’re a lifeline.
On-chain FX trading innovation
But the innovation doesn’t stop there. Across global FX markets, we’re seeing the first steps toward bringing currency trades on-chain. Taking the example of a EUR/USD transaction, historically, this required both legs of the trade to be settled over traditional fiat rails. Now, firms are beginning to settle one side of that trade using a stablecoin, typically USD-denominated tokens such as USDC or USDT.
By moving one leg on-chain, settlement becomes faster, cheaper, and more transparent. Liquidity in major stablecoins is deep enough to support meaningful FX volume, and early adopters are already proving out operational efficiency.
The next phase will go further still: both legs of the FX trade will move on-chain, unlocking 24/7 liquidity and near-instant settlement. For emerging market currencies - where traditional banking rails are slow, fragmented, and costly - this shift represents not just incremental progress, but a fundamental leap forward.
Overcoming challenges to unlock real change
When speaking on a recent podcast alongside our partner Fireblocks, their SVP of Payments and Network, Ran Goldi, expressed that embracing stablecoins isn’t about being “crypto maximalists”. It’s about upgrading financial infrastructure. He used the analogy that, in the same way communication evolved from phone calls to video conferencing, payments are evolving from static banking rails to programmable, real-time settlement.
But for this evolution to scale, we need orchestration. The orchestration layer - what happens behind the scenes - should handle the complexity, compliance, and connectivity so that businesses don’t have to. The end client shouldn’t worry about which blockchain or stablecoin they’re using; they just need reliable access, regulatory trust and interoperability with their existing systems.
That’s where OpenPayd comes in. Our role is to be the agnostic connector, integrating fiat, blockchain and stablecoin infrastructure into one compliant, API-first platform. We make it possible for businesses to move and manage money globally, without friction.
