Liquidity infrastructure is central to stablecoin issuance

As stablecoin issuance proliferates, seamless interoperability between assets has become vital. B2C2’s Cactus Raazi explains how ensuring deep liquidity reduces costs and boosts efficiency when moving value across the stablecoin ecosystem.

he stablecoin market is currently dominated by USD-backed giants like Tether and Circle. This concentration reflects the dominance of the initial use case of digital currency markets - to facilitate trading of crypto on exchanges. What comes next is a multi-issuer, multi-use case ecosystem where stablecoins transition into essential financial infrastructure.

From digital dollars to embedded infrastructure

Stablecoins began as proxies for fiat currency—digital dollars for crypto traders. They now represent a leap forward in the utility of money movement, facilitating instant settlement without intermediaries, slippage, or extra cost. And they’re programmable—enabling new use cases for ecommerce, loyalty programs, split payments, and automation.

It’s no surprise we’ve seen IPOs from stablecoin companies, announcements from tier-1 banks, and the emergence of dedicated paytechs. As this market matures, a variety of stablecoins will emerge, driven by six converging forces.

1. Remittances

In regions plagued by currency volatility or capital controls, stablecoins are increasingly the infrastructure for diaspora remittances. An individual in the USA can exchange USD to USDT quickly and efficiently, then transfer the funds abroad nearly instantly. The recipient can leave funds in their wallet and off-ramp to local currency as needed. If a local currency depreciates rapidly, a stablecoin pegged to a stable currency offers immediate utility. Expect acceleration from MTOs, cross-border payments companies, and banks responding to ground-level economic pressure.

2. Mainstream finance

Bitcoin plays an increasingly important role as a commodity. The US government now holds the world’s largest strategic BTC reserve, and cryptocurrency has become an important new asset class for forward-thinking managers. Crypto-linked ETFs continue launching, creating new entry points for institutional capital. Retail-focused banks like Revolut, SoFi, and Nubank have integrated crypto services. Each of these developments requires efficient on-ramps and settlement tools—roles that stablecoins are uniquely positioned to fill.

3. Sovereignty and efficiency

Governments and institutions have clear incentives to issue EUR-, GBP-, and regionally-linked alternatives. Motivations include reducing dependence on dollar liquidity, preserving monetary sovereignty, and operating within domestic or regional regulatory frameworks. The challenge lies in creating sustainable economic models that incentivise participation without sacrificing stability, liquidity, utility, or regulatory compliance.

4. Tokenized deposits

Although it’s still early, traditional financial institutions are experimenting with tokenized bank deposits to enable real-time settlement, reduce prefunding requirements, and improve capital efficiency. Rather than disrupting existing bank money, this approach extends it onto blockchain rails. The result is a faster, cheaper settlement without abandoning the regulatory safeguards banks operate under.

5. Bank issued stablecoins

Beyond internal tokenization, banks will also issue stablecoins designed for cross-platform settlement and interaction with external markets. This is a competitive play: owning client relationships, achieving instant settlement, and maintaining control over compliance and KYC processes. When banks issue instruments, they directly control, reduce dependency on third-party payment rails, and preserve regulatory oversight.

6. Corporate stablecoins

Corporates and tech platforms see stablecoins as tools to improve operational efficiency and retain control over their customers’ user experience. Purpose-built tokens can accelerate payments, power customer loyalty programs, and reduce reliance on legacy payment networks. Companies with global reach and large user bases—think ecommerce giants, remittance platforms, or gaming ecosystems—have the motivation to launch their own stablecoins.

Fragmentation is inevitable—liquidity is not

This multi-issuer future brings a critical challenge: fragmentation. As more entities launch stablecoins across different currencies, blockchains, and use cases, the system becomes operationally complex. Moving value between stablecoins, without ensuring sufficient liquidity, could become costly and cumbersome. Fragmentation without interoperability creates slippage and friction, undermining the efficiency that stablecoins promise.

The liquidity layer

That’s where market makers like B2C2 provide the solution. We trade ~USD 1 billion in stablecoins daily and have processed over USD 2 trillion since 2015. These volumes are linked to crypto trading and market making for some of the world’s largest institutions. We recently launched PENNY, our stablecoin swap solution, to enable zero-fee instant conversion with razor-sharp institutional rates across stablecoins and blockchain networks. Today, we’re working with some of the world’s largest banks, payment companies, and ecommerce platforms on treasury optimisation, cross-border payments, and cost-effective settlement. As stablecoin issuance proliferates, the ability to move seamlessly between them is vital. Without instant convertibility and deep liquidity pools, the promised stablecoin future won’t materialise. The market’s evolution depends not just on who issues stablecoins, but on who enables them to function together. The stablecoin explosion is coming. The only question is whether the infrastructure exists to make it work. It does. We built it.

This editorial is part of the Global Stablecoins Report 2026. Explore how stablecoins are moving from hype to utility for banks, merchants, and fintechs.  

About author

Cactus Raazi is the Americas CEO at B2C2, a leading institutional digital asset market maker. He previously served as US CEO at Amber Group and held senior leadership roles at Goldman Sachs—where he built their credit and risk desk—Nomura, and Tradeweb. A fintech entrepreneur, Raazi founded the algorithmic platform Elefant Inc. and authored the widely acclaimed book Price. He holds degrees from UC Santa Barbara and an M.S. in Business Analytics from NYU. 

About B2C2

B2C2 is a leading institutional digital asset liquidity provider, delivering deep, reliable pricing across spot, derivatives, and structured products. Founded in 2015, it serves banks, asset managers, hedge funds, exchanges, and payments firms globally. The firm trades over USD 1B in stablecoins per day. Through its stablecoin solution PENNY, B2C2 supports FX, cross-border payments, and treasury use cases. With several regulated entities and partnerships with leading custodians, it enables fast, efficient settlement.