‘Stablecoin Sandwiches’ and Other Crypto Terms

As cryptocurrency continues its march toward mainstream adoption, CFOs and treasurers are finding themselves at the forefront of what could be a financial revolution.

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No longer the domain of blockchain enthusiasts and tech startups, crypto and blockchain solutions are increasingly becoming vital tools in the treasury toolbox. Yet to successfully navigate this shifting landscape, it’s essential for finance professionals to master the specialized vocabulary that defines these payments innovations.

Staying ahead of terms like “stablecoin sandwiches,” zero-knowledge proofs, atomic swaps, on-chain liquidity and more will allow financial leaders to make informed decisions about integrating these technologies into their payment systems.

After all, the usability of crypto in enterprise finance hinges on the ability to grasp these concepts and apply them in real-world scenarios. As 2025 kicks off staying fluent in the evolving language of payments innovation will help CFOs and treasurers stay ahead of the curve, ensuring that their organizations remain competitive in an increasingly digital economy.

Understanding these terms isn’t just academic — it’s about unlocking the usability of crypto for enterprise applications.

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Mastering Crypto Vocabulary for the Future of Payments

Stablecoins have emerged as the bridge between traditional finance and the world of digital currencies. In a market known for volatility, stablecoins offer a tether to familiar, stable values like the U.S. dollar. However, understanding the concept of a stablecoin sandwich takes this a step further.

For the Outlook 2030 B2B event at the end of 2024, PYMNTS sat down with Ran Goldi, SVP, payments and network at Fireblocks, and Nikola Plecas, head of commercialization, Visa Crypto, to dissect the benefits and myths surrounding blockchain-based payments, including the concept of the “stablecoin sandwich,” a method of using stablecoins to transfer value between currencies, serves as a practical illustration of blockchain’s efficiency in cross-border payments.

As Goldi explained, the process involves converting a currency, such as Mexican pesos, into a dollar-pegged stablecoin (e.g., USDC). This digital currency is then transferred instantly to the receiving country, where it is converted back to local fiat currency, such as British pounds. He shared a real-world example: In Latin America, importers use stablecoins to pay Asian suppliers. Payments that used to take days now settle in minutes, reducing storage costs and customs delays.

This speed gives payment providers a significant edge in markets where efficiency is critical. “Payment companies that don’t embrace these solutions risk falling behind,” Goldi said.

For CFOs and treasurers, the key to understanding stablecoin sandwiches is recognizing how to integrate these tools effectively within treasury functions. The flexibility of combining various stablecoins within a transaction allows finance leaders to balance risk, reduce fees and keep payments efficient — while staying within the bounds of regulatory frameworks.

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Why CFOs and Treasurers Need to Care

PYMNTS Intelligence this year found that blockchain technology has numerous potential benefits to serve the unique needs of regulated industries, including finance, healthcare, identity verification and supply chain management, to name a few.

As cryptocurrencies look to become a fixture in global payments, the question of privacy becomes paramount. Zero-knowledge proofs (ZKPs) allow one party to verify a piece of information to another without actually revealing that information. In the world of payments, ZKPs help ensure that sensitive data, such as transaction history or payment details, remains confidential while still ensuring the legitimacy of the transaction.

For treasurers and CFOs managing sensitive business finances, ZKP technology allows CFOs to validate compliance with anti-money laundering (AML) and know your customer (KYC) standards while protecting sensitive corporate data.

On-chain liquidity, or liquidity provided directly on a blockchain network through decentralized exchanges (DEXs) or liquidity pools, eliminates intermediaries, reducing costs and increasing transaction speed. Treasurers leveraging on-chain liquidity can optimize working capital in real time.

Atomic swaps, for their part, are smart contracts enabling direct cryptocurrency exchanges between parties without intermediaries. Atomic swaps can simplify cross-border or cross-currency payments, a critical feature for treasurers dealing with multi-currency exposures.

Ultimately, understanding blockchain terms equips financial leaders to make informed decisions about adopting or avoiding certain technologies. Mastering this language will empower leaders to identify opportunities, mitigate risks, and steer their organizations confidently into the digital future.