Stablecoins: From Hype to Infrastructure

Stablecoins have rapidly evolved from a trading convenience in digital asset markets to a cornerstone of global finance. Today, they account for over 80% of crypto trading volume, but their impact reaches far beyond exchanges. In high-inflation economies like Venezuela and Turkey, stablecoins are used daily as a safe store of value and a functional alternative to unstable local currencies. Their hybrid design — fiat stability combined with the speed and programmability of blockchain — is transforming them into financial infrastructure that rivals traditional banking rails.

The most immediate impact of stablecoins is seen in payments. For remittances, stablecoins reduce costs from an average of 6.6% (≈$13 on a $200 transfer) to just pennies, while enabling instant cross-border settlement. They also expand financial access for the 1.4 billion unbanked adults worldwide, turning any smartphone into a digital wallet. In e-commerce, stablecoins allow merchants to bypass card networks’ 1.5–3.5% fees and eliminate costly chargeback risks. With adoption by Visa, Mastercard, Shopify, and PayPal, stablecoins are no longer experimental — they are becoming embedded in the everyday flow of money.

The U.S. has unique advantages that make it the natural leader in the stablecoin era. Deep capital markets mean issuers are now among the largest buyers of U.S. Treasuries, directly linking stablecoin growth to government financing. The country also benefits from a thriving fintech ecosystem, where companies like Circle and PayPal are pushing programmable money and 24/7 settlement into the mainstream. With the passage of the 2025 GENIUS Act, regulatory clarity is finally here, providing the rules of the road for issuers and institutions. For financial institutions, this is the moment to move from exploration to execution — by embedding stablecoins into payments, treasury, and compliance systems, building robust AML/KYC frameworks, and partnering with ecosystem players.

At Sia, we help organizations navigate the shift from stablecoin theory to practice. We work with clients to pinpoint high-impact use cases such as remittances, treasury, and merchant payments. Our teams design compliance frameworks that meet the highest standards for AML/CFT, KYC/CDD, and independent audits. Beyond strategy, we support adoption and training across organizations and connect clients with leading issuers and infrastructure providers to accelerate deployment.