Globally as financial systems enter a new era, one where the idea of “digital money” is no longer futuristic, but foundational. At the centre of this transformation are stablecoins, digital tokens pegged to traditional currencies that promise the speed of crypto with the stability of fiat. Once seen as an experiment, by surpassing volumes of global payment giants like Visa and Mastercard, stablecoins are re-shaping the architecture of global finance.

The momentum is unmistakable. Businesses today are using stablecoins not as speculative assets, but as tools of global trade. From global e-commerce platforms to export-driven SMEs, companies are paying suppliers, managing payrolls, and settling cross-border invoices on blockchain rails. This is the kind of adoption that traditional banking rails, burdened by delays and costs, have struggled to deliver. Cross-border efficiency is no longer a luxury, it’s an expectation.

Customer behaviour is evolving just as fast. The new generation of consumers and businesses value speed, efficiency and real-time transparency in financial interactions. Stablecoins enable both. They are programmable, interoperable, and designed for a world where finance operates at the speed of the internet. As adoption widens, the question is not longer if businesses will use stablecoins, it’s how quickly will the traditional systems adapt to this. 

Regulators, too, are beginning to recognise this shift. The EU’s MiCA framework, the Genius Act and the draft stablecoin bills in the US, and even the Reserve Bank of India’s pilot on tokenised deposits all point toward a future of structured oversight. This is a healthy evolution. Regulatory clarity will not only reduce systemic risk but also open the door for banks and financial institutions to participate meaningfully in this new ecosystem.

Corresponding to the rise of stablecoins, we’re also witnessing the rise of central bank digital currencies (CBDCs) as a homegrown counter to the growing rise of stablecoins. While many might think in absolutes or in one over the other, the reality is that both will coexist, serving distinct purposes. CBDCs will represent sovereign control and policy stability, while stablecoins will continue to lead innovation, interoperability, and cross-border liquidity. Together, they can power a financial system that is more efficient, resilient, and inclusive.

The economic incentives are undeniable. Stablecoin rails can unlock programmable finance, automating settlements, enabling micro-payments, and reducing reconciliation costs. They also pave the way for tokenised assets and new liquidity models that were previously too complex or expensive to execute through legacy systems. For financial institutions, this represents not disruption, but opportunity.

The next leap for stablecoins will hinge on trust. Transparency, credible reserves, and regulatory alignment will determine which stablecoins thrive. Bank-issued and fully backed tokens, in particular, can bridge the confidence gap between traditional finance and digital assets, ushering in a new era where digital money is not just efficient, but also dependable.

Stablecoins are no longer the experiment, they are the infrastructure. The institutions that recognise this early will not only stay relevant in a digital-first world, but help define how value itself moves across economies.

About Author: Manhar Garegrat is an accomplished business leader with a distinguished track record in driving growth and spearheading strategic initiatives in the digital asset industry. In his current role as Country Head, India & Global Partnerships at Liminal Custody, he is poised to expand the company’s presence globally. Capitalizing on his extensive experience in executive leadership, policy advocacy, and business management, he is well-positioned to guide Liminal in fulfilling its mission to provide secure and compliant custody solutions to enterprises and crypto-native organizations.