While the financial world continues to march ahead with digital transformation, one innovation has risen above the rest: a bridge that connects the world of traditional finance with the burgeoning digital asset industry — stablecoins. In 2025, stablecoins
are going to grow increasingly relevant in changing the face of banking, with their vast potential to marry the efficiency of digital currencies with the level of trust and stability that is needed for mass adoption within the traditional finance sphere.
Stablecoins as competitive solutions to traditional payment systems
Stablecoins are fast becoming an effective and efficient competitor to traditional payment systems such as ACH, FedWire, and SWIFT. With advantages like 24/7 availability, faster settlement times, traceability, transparency and non-reversibility, stablecoins
will increasingly become the preferred option for both businesses and individuals.
Whereas the transfer of millions of dollars used to take days or even weeks with traditional systems, today an equivalent amount can be transferred in minutes using stablecoins. This is hugely important for cross-border payments, since high transaction costs
and delayed settlement times have long been major pain points.
With these efficiencies and cost savings, stablecoins are making their case not just as a supplement but as a real alternative to traditional payment rails.
Case applications of stablecoin integration
The banking industry is moving from cautious experimentation with stablecoins into full-scale implementation, albeit slowly. It is reported that JPMorgan executes a daily average of USD $1bn through the Onyx platform using JPM Coin - proving functional efficiency
with stablecoins. Meanwhile, Visa's Tokenised Asset Platform, or VTAP, works with banks like BBVA in the issuance of tokenised assets, showing how stablecoins are being woven into the fabric of traditional banking.
Even Société Générale's euro-backed stablecoin, EUR CoinVertible (EURCV), has extended institutional use cases to retail investors, as demand from consumers for the use of stablecoin services continues to grow. These initiatives signal a broader trend of
banks recognising that the competitive advantage could be furthered by integrating stablecoins into their offerings.
Building on this momentum, financial institutions are taking note of the demand for stablecoins as tools for immediate liquidity and transparency. For example, stablecoins are increasingly foundational in payroll solutions for freelancers and small businesses.
Rather than having to bear the cost of expensive international transfers, sub-optimal FX rates, or day’s long waiting times inherent in traditional banking system clearing times, companies can immediately issue payments using USD-backed stablecoins to ensure
employees get their full earnings on time. Such use cases are only growing.
Stablecoins are also changing consumer fintech platforms and giving people more direct, flexible access to their money. Stablecoins are becoming seamlessly integrated with digital wallets and linked to payment systems, allowing consumers to spend them as
easily as fiat currency. Emerging technologies are further enabling banks to offer stablecoins as an alternative payment rail, thus affording customers the option of faster, more transparent transactions alongside traditional methods.
While stablecoins are poised to create ripples in consumer markets, the present day adoption is largely driven by B2B and enterprise use cases. Large institutional businesses and broker-dealers alike enjoy the efficiency and cost savings that stablecoins
bring to cross-border payments and settlements. These early adopters leverage stablecoins to bring greater efficiency into their operations, as companies move millions across borders with unprecedented speed and greatly reduced fees.
As consumer-facing solutions — such as digital wallets representing tokenised dollars — continue to be adopted, stablecoins will extend into broader markets, extending the same benefits they have given to enterprises today to individual users.
Role of regulation to build trust
Of course, stablecoins are not without their fair share of risks. Questions of transparency, security, and systemic risk have long dogged the sector, but 2025 is poised to usher in some regulatory progress that will serve to foster greater trust for broader
adoption.
The European Union's MiCA regulation introduced a legal standard on the governance of stablecoins at the beginning of 2024, demanding high transparency and the auditing of reserve backing. Meanwhile, in the UK, the Bank of England and the FCA proposed frameworks
for the regulation of systemic stablecoins, thereby enabling their safe operation within the traditional financial system. The international momentum is further emphasised by Hong Kong's Stablecoin Bill, where stablecoins shall be fully backed and audited
to uphold public confidence in them.
In the meantime, our hope at FV Bank is that the United States continues to pioneer stablecoin technology and adoption. With solid legal infrastructure and the popularity of USD-backed coins like USDC, PYUSD and Tether (USDT), the United States remains the
hotbed of stablecoin innovation. Regulators are also trying to draft comprehensive legislation that can effectively balance risks with the encouragement of innovation to position the nation for leadership in digital finance.
Real-world examples
In 2022, FV Bank introduced Circle’s USDC stablecoin to our banking services, which allowed customers to instantly deposit USDC into their accounts and immediately convert it to USD. In 2024, FV Bank added Tether (USDT) to its offering to further enhance
its cross-border capabilities.
The role of tokenised assets and yield-bearing instruments
Beyond payments, the tokenisation of assets is becoming an essential facet of stablecoin adoption, particularly in the realm of yield-bearing instruments. The number of projects - such as BlackRock's BUIDL and Franklin Templeton's Benji tokenised money markets
- shows how blockchain technology is going to change the makeup of traditional investment products. Innovations such as this might finally make stablecoins an easy on-ramp to more yield-bearing investments for the broader consumer and help democratise a financial
product category previously available to institutional participants only. These will allow for simpler participation in money markets once these solutions are more accessible and further embed stablecoins into the fabric of global finance.
Stablecoins as foundational to consumer fintech solutions
Fintech companies use stablecoins as a building block to create consumer-facing products where tokenised dollars can, in many ways, replace traditional fiat currencies.
Solutions like MetaMask with MasterCard are already enabling users to hold stablecoins in digital wallets and spend them like cash. This is one of those kinds of innovations that challenge the need for traditional bank accounts, putting financial tools in
users' hands that operate outside of the constraints of legacy systems.
As these platforms continue to mature, stablecoins will become foundational in a new generation of consumer fintech solutions, which will seamlessly integrate blockchain technology into everyday financial life.
What to expect from 2025 and beyond
Stablecoins will solve the current inefficiencies of traditional finance, and this will create an exponential increase in adoption globally. Merging the speed and cost-effectiveness of digital currencies with the reliability of fiat money, stablecoins will
be considered just about indispensable for the banking sector going forward.
Looking ahead, the future of stablecoin adoption is bright, with even more traditional banks looking to offer modern solutions for customers. At FV Bank, we believe the likelihood is growing that stablecoins will be able to evolve into a core banking feature
- one that will grant both consumers and businesses a choice between blockchain-based payments and traditional banking rails.
At FV Bank, we believe that 2025 will be the year in which stablecoins will no longer be seen as a niche innovation, but will become the bedrock of a new era for global finance. The question has stopped being whether stablecoin will change banking but how
and how fast it will reshape the landscape.
The answer will grow a lot clearer in 2025.