Stablecoins Move From Cross-Border B2B to Real-Time Treasury

2024 was a very good year for stablecoins.

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The blockchain-based digital tokens, which are pegged to fiat currencies or assets to minimize volatility, gained traction as financial services firms ventured into blockchain, while Donald Trump’s election victory portends a pro-crypto administration in the U.S.

Stablecoins have transitioned from speculative tools to potentially foundational elements of global finance. 

While challenges remain, particularly around the need for clear regulatory frameworks, the potential for stablecoins to drive greater efficiency, inclusivity and transparency in financial services is considerable. And as 2024 revealed, the near-term impact is focused across three areas: cross-border payments, real-time treasury management, and B2B transactions.

For payment professionals, understanding stablecoins’ role and their practical use cases is becoming more essential to staying relevant and competitive in the digital economy.

Read more: The Payment Professional’s Guide to Stablecoins

Stablecoins and Financial Services

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During 2024, stablecoins’ role as a bridge between traditional finance and digital currencies became more pronounced. As recently as Monday (Dec. 23), Wirex added two new stablecoins to its digital payments platform, while holiday moviegoers this year were allowed to buy tickets and concessions at Regal theaters around the United States using the USDC stablecoin.

The world’s banking giants are also showing a rising interest in stablecoins. Societe Generale – Forge (SG-Forge) opened its euro-backed stablecoin to retail investors earlier this year. Revolut is reportedly considering its own version, as is AllUnity, a venture involving the Deutsche Bank-owned DWS. Visa, meanwhile, launched a tokenization network in October for banks to issue stablecoins, and is collaborating with BBVA on a pilot in next year, as well as is in talks with many other banks.

“The largest financial institutions are eager to explore tokenized assets,” Nikola Plecas, head of commercialization, Visa Crypto, told PYMNTS, but noted that they require regulatory certainty to do so at scale.

One of the more immediate opportunities that stablecoins represent within financial services and payments is their potential to transform and streamline cross-border payments.

Historically, cross-border payments have been fraught with inefficiencies. High fees, lengthy processing times, and opaque intermediaries often burdened businesses and individuals alike. But by leveraging stablecoins, banks and payment platforms can enable near-instantaneous settlement of international transactions at a fraction of the cost associated with traditional banking channels.

“Blockchain solutions and stablecoins — I don’t like to use the term crypto because this is more about FinTech — they’ve found product-market fit in cross-border payments,” Sheraz Shere, general manager of payments and commerce at Solana Foundation, told PYMNTS in September. “You get the disintermediation, you get the speed, you get the transparency, you get extremely low cost.”

PYMNTS Intelligence found that using cryptocurrencies for cross-border payments could be the winning use case that the sector has been looking for. The research found that blockchain-based cross-border solutions, particularly stablecoins, are being embraced by firms looking to find a better way to transact and expand internationally.

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Read more: Compliance Divides Stablecoin Market: Why CFOs and Treasury Teams Should Care

Real-Time Treasury Management

Treasury departments have traditionally grappled with a lack of real-time visibility into cash positions, particularly for multinational corporations with operations spanning multiple countries and currencies. Stablecoins can offer a solution by providing a digital asset that can move seamlessly across borders and financial institutions, enabling instantaneous liquidity management.

“In five years, we might have a blockchain or state-machine capability where financial institutions involved in a transaction can look at that common state and use it as a source of truth to update their own balance sheets,” Tony McLaughlin, emerging payments at Citi Services, told PYMNTS.

As PYMNTS has covered, blockchain-based treasury applications are important for finance teams looking toward a more efficient and transparent financial future.

Separately, but importantly, 2024 also revealed that leveraging blockchain for better payments is a priority for B2B firms, as evidenced by Mastercard’s Multi-Token Network connecting to J.P. Morgan’s Kinexys Digital Payments to streamline cross-border B2B transactions.

B2B payments are notorious for their reliance on manual processes, lengthy approval cycles, and intricate workflows. Stablecoins could be poised to disrupt this space by introducing automation, speed and cost efficiency.

The mainstream acceptance of stablecoins signals a shift not just for financial services but for global commerce as a whole. Their impact extends beyond payments, touching areas like decentralized finance (DeFi), remittances, and even philanthropy. For financial institutions, the challenge lies in balancing the opportunities presented by stablecoins with the risks associated with their adoption.

In the coming years, stablecoins will likely continue to evolve, integrating with technologies like artificial intelligence. As they do, the financial services industry must remain agile, embracing innovation while safeguarding stability and security.