Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Fintech»The Payment Professional’s Guide to Stablecoins
    Fintech

    The Payment Professional’s Guide to Stablecoins

    October 21, 20244 Mins Read


    The stablecoin market is collectively worth north of $170 billion.

    That’s a large number. And with the news Monday (Oct. 21) that FinTech giant Stripe has reportedly acquired stablecoin platform Bridge for $1.1 billion, it’s becoming a harder one for the payments sector to ignore.

    Stripe isn’t alone in its growing interest in stablecoins, and the attention of the FinTech sector comes as these digital assets are increasingly finding utility beyond their historical use case as base trading pairs and liquidity sources across cryptocurrency exchanges and within the broader Web3 economy.

    Stablecoins, which are cryptocurrencies designed to maintain a stable value by being pegged to a reserve asset (usually a fiat currency like the U.S. dollar or euro), are emerging as a powerful tool bridging the gap between traditional financial technology (FinTech) and the world of cryptocurrencies. Their ability to offer the efficiency and transparency of blockchain technology while providing the familiarity and stability of fiat currencies is critical for integrating blockchain-based assets into mainstream financial systems.

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

    Read more: Visa, PayPal and Others Could Bring Utility and Legitimacy to Stablecoins

    How Stablecoins Are Bridging Crypto and FinTech

    The potential of stablecoins to optimize cross-border payments and provide alternative payment solutions, such as for complex commercial transactions or within regions with less stable fiat currencies, is the basis of the financial services sector’s interest in the innovative digital asset class.

    As recently as Thursday (Oct. 17), payments infrastructure provider BVNK launched a partnership with the stablecoin USDC-issuer Circle designed to accelerate the utility of the USDC stablecoin for BVNK customers. And BVNK is not alone in its crypto experimentations.

    PayPal, for example, completed its first business payment, to EY, with its in-house stablecoin, PYUSD, earlier this month, while Visa launched a new platform for banks to issue fiat-backed tokens, such as stablecoins and tokenized deposits. Meanwhile, Coinbase is also expanding the ways businesses can pay via the Coinbase Prime brokerage platform.

    Other payment providers and FinTech companies are integrating stablecoins into their platforms, allowing users to make payments or settle accounts using these assets. Major stablecoins like USDC and USDT are compatible with various blockchain networks, enabling interoperability and flexibility in connecting different payment systems. This integration helps facilitate smoother transactions between digital wallets, bank accounts and other payment platforms, creating a seamless user experience.

    For example, Stripe authorized its merchants in the United States to receive the Circle-issued USDC through their online checkout pages, beginning Oct. 9, and in the first 24 hours of allowing its merchants to accept stablecoin payments, Stripe reportedly saw customers from more than 70 countries make purchases with that form of payment.

    Stripe said this past April that it would bring back crypto payments after stopping them in 2018.

    Read also: What CFOs Should Know About the Growing Use of Stablecoins

    Which Stablecoin Is Best Suited

    The stablecoin landscape is dominated by a few major players. Knowing which stablecoin is best suited to which purpose is crucial to getting the most of its usage. For example, while Tether (USDT) is the largest stablecoin by market cap, it is primarily used as a trading pair on exchanges for liquidity and stability and its regulatory status may cause businesses to hesitate in fully embracing it across their operations, particularly as the European Union’s Markets in Crypto-Assets Regulation (MiCA) is introducing tougher oversight of cryptocurrency companies.

    Binance USD (BUSD), the third-largest stablecoin, is similar in makeup and use to USDT, serving a key purpose across the broader Binance crypto ecosystem and for remittances and cross-border transfers that bypass traditional banking.

    USD Coin (USDC) is the stablecoin finding the widest embrace among institutions for payments, remittances and reserve assets, although banks like J.P. Morgan have also created their own native tokens. J.P. Morgan became the first major U.S. bank to introduce its own digital token for real-world use in 2019, saying the blockchain-based cryptocurrency was created to allow for “the instantaneous transfer of payments between institutional accounts.”

    Stablecoins vary in their regulatory adherence, and businesses must assess the risk and compliance requirements for each.

    See More In: acquisitions, Bridge, circle, coinbase, Cryptocurrency, FinTech, News, PayPal, PYMNTS News, stablecoins, Stripe, Tether, USDC, USDt, Web3



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Le bénéfice de K Cash Fintech devrait augmenter au premier semestre

    Fintech

    Les fintechs sont de retour en bourse : au tour des françaises ?

    Fintech

    Pourquoi les néobanques attaquent le marché des petites entreprises

    Fintech

    Qonto, la fintech française, sollicite une licence bancaire et vise 2 millions de clients d’ici 2030

    Fintech

    Les fintechs marocaines à l’honneur lors de l’Immersive Fintech Day 2025

    Fintech

    les clients français vont adorer ces nouvelles cartes spéciales NBA

    Fintech
    Leave A Reply Cancel Reply

    Top Picks
    Commodities

    Frontier District to host meeting on drone use in agriculture – Osage County Online

    Commodities

    Campers, coaches show energy at Hancock Girl’s Youth Summer Camp | College Sports

    Commodities

    Energy Insider: China Releases Power System Reform Plan, Provinces Ordered to Use More Renewable Energy

    Editors Picks

    Angkor au Musée Guimet, un trésor de métal et de pierre

    June 2, 2025

    Alitheia Capital et Goodwell Investments se désengagent de Baobab Nigeria

    March 20, 2025

    Fintech Startup Lettuce Financial Closes $15 Million in Series A Funding to Fuel Partnerships, Product Development and Growth

    August 21, 2024

    Future FinTech Announces the Appointment of Hu Li as the New CEO

    August 9, 2024
    What's Hot

    Australian Agricultural Bodies Rush for China Market Access

    October 24, 2024

    McDonald’s Instagram hacked to promote cryptocurrency scam featuring Grimace

    August 21, 2024

    What are Commodities? Definition & Examples

    March 21, 2025
    Our Picks

    Dates and details announced for 2025 Southern Agricultural Show

    June 9, 2025

    La start-up Fintech Syfe lève 80 millions de dollars pour financer son expansion à Hong Kong

    June 6, 2025

    la transformation locale des minéraux émerge pour ajouter de la valeur au secteur minier

    April 3, 2025
    Weekly Top

    Next Cryptocurrency to Explode, 6 July — Story, Alchemy Pay, Injective, MX Token

    July 6, 2025

    Ukraine imposes sanctions on Russian financial, cryptocurrency schemes

    July 6, 2025

    BAY Miner Announces Major Launch: Free Mobile Cloud Mining App Drives Global Expansion into Eco-Friendly Cryptocurrency

    July 6, 2025
    Editor's Pick

    Cyber crooks STEAL £1.19bn in biggest-ever cryptocurrency theft – as North Korean hackers ‘behind heist’

    February 22, 2025

    La division fintech de MercadoLibre va demander une licence bancaire en Argentine

    May 28, 2025

    Efforts to be put in increasing per unit yields of grain and oil crops in 2025: agricultural ministry

    January 20, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.