Ushering in the future of crypto payments with stablecoins

Stablecoins have quickly emerged as a pivotal innovation in the financial landscape, bridging the gap between cryptocurrencies and traditional fiat currencies. By maintaining a consistent value, stablecoins can be used to facilitate seamless transactions, making them indispensable for a multitude of traditional financial applications.

Beyond institutional applications, stablecoins are also revolutionising global payments, remittances, and decentralised finance (DeFi). In fact, our recent research found that 58% of finance leaders in Europe see cross-border payments as a top use case for stablecoins. Their ability to facilitate near-instant cross-border transactions at lower costs makes them a game-changer for financial institutions and corporates alike. As regulatory frameworks continue to evolve and adoption grows, stablecoins are beginning to play a critical role in the mainstream financial ecosystem, bridging traditional and digital economies while driving the future of crypto payments forward.

Growth in fiat-backed stablecoins

Fiat-backed stablecoins, which are underpinned by reserves of traditional fiat currencies and typically subject to regulatory oversight, are considered among the most reliable and trusted in the market today. They combine blockchain’s security, speed, and scalability with the stability of traditional currencies, making crypto transactions more accessible.

By mitigating the volatility inherent in other types of crypto assets, stablecoins have also become a viable gateway for new users to more confidently embrace crypto and blockchain solutions. Last year, the annual stablecoin transfer volume reached USD 27.6 trillion surpassing volumes passing through Visa and Mastercard’s global networks.

In response to the growing demand for USD-denominated stablecoins, prominent global businesses are increasingly investigating the opportunities presented by launching stablecoins, especially in regions like APAC, the EU, and Australia. Several stablecoins have been launched on the XRPL including EURCV, BBRL/BUSD, and RLUSD. With the supply of stablecoins on the rise – and global market cap exceeding USD 200 billion in early 2025 – it’s clear that stablecoins are becoming a fundamental component of the global financial system.

Why stablecoins matter

Stablecoins offer several advantages that make them integral to the modern financial system:

1. Fast, low-cost transactions: stablecoins enable instant transfers with minimal fees, making them ideal for everyday transactions.
2. Cross-border payments and remittances: their stable value and digital nature make stablecoins suitable for global transactions, reducing the time and cost associated with traditional cross-border payments.
3. Financial inclusion: many economies across the globe experience local currency volatility, making life difficult for businesses and individuals due to the resulting unpredictable business environment, increased costs, and challenges in financial planning. Stablecoins provide access to financial services for the unbanked and underbanked populations, allowing them to participate in the global economy.
4. Institutional use cases: businesses can use stablecoins for treasury management, settlements, and corporate payments, benefiting from their stability and efficiency. Stablecoins also offer a compelling solution for banks and fund managers seeking efficient trade settlement assets. When it comes to real-world assets (RWAs), these markets are best served by stablecoins to ensure that RWAs are properly priced and to facilitate efficient market operations worldwide by using a stable medium of exchange.
5. On-ramps and off-ramps for crypto: stablecoins facilitate the conversion between digital and fiat assets, serving as a bridge for users entering or exiting the cryptocurrency market. Given their ease-of-use and ubiquity across protocols, stablecoins often provide a simple and easy method to onboard more customers.

Keys to stablecoin success

The success of any stablecoin hinges on two critical factors: regulatory clarity and stability. Smart, clear regulations are essential for fostering institutional adoption of digital assets and are key to driving continued innovation. A prime example is the Markets in Digital Assets (MiCA) regulation which establishes a comprehensive framework for stablecoin issuers in the European Union. It requires issuers to maintain full transparency by undergoing regular audits that verify their reserves. It also limits stablecoin issuance to regulated financial institutions, ensuring that only entities meeting strict standards can participate in the market. In addition, it establishes clear consumer protection rules, outlining investor rights and redemption policies to prevent misuse. However, regulatory clarity is only part of the puzzle. Stability remains the primary reason businesses and individuals rely on stablecoins, making trust and transparency critical. Stablecoins that are backed 1:1 by fiat currency and fully supported by segregated fiat currency reserves provide businesses with the confidence to fully lean in.

The future of payments

Stablecoins are increasingly playing a crucial role in payments, remittances, decentralised finance (DeFi), and cross-border payment solutions. Their stable value ensures seamless fund transfers without value fluctuations during the transaction, making them a reliable choice for both consumers and businesses.

As blockchain technology advances, stablecoins are addressing the challenges currently facing our global, traditional, real-world payment systems by providing a secure and efficient alternative. By combining the stability of a fiat-backed asset with enhanced liquidity, financial institutions can improve transaction speed, reduce costs, and increase transparency, all whilst embracing a digital-first approach.

Looking ahead, stablecoins will play an increasingly vital role in global finance, DeFi, and tokenization. Built on trust, security, and regulatory compliance, they are redefining the global money movement and paving the way for a more inclusive and efficient financial future.

 

This editorial piece was originally published in The Paypers’ Web 3 Payment Acceptance Report 2025. The report highlights the current landscape of Web 3 payments, including their rapid growth, high adoption rates, and underlying drivers. It also explores key players in the field, regulatory advancements, the role of AI in crypto and blockchain, and more.

 

About the author

 

Cassie is Managing Director, UK & Europe at Ripple. She is a seasoned fintech leader who specialises in working with global financial services companies to enable them to drive innovation, growth, and efficiencies through new technologies, with a particular focus on blockchain, digital assets, and payment infrastructure. Cassie’s international expertise has been built up across a range of cutting-edge fintechs, including French startup Mangopay and payments companies Ixaris and Veridu.

 

 

About Ripple

 

Ripple is the leading provider of digital asset infrastructure for financial institutions – delivering simple, compliant, reliable software that unlocks efficiencies, reduces friction, and enhances innovation in global finance. With a proven track record working with regulators and policymakers around the world, Ripple’s payments, custody, and stablecoin solutions are pioneering the digital asset economy, building credibility and trust in enterprise blockchain.