Few financial products have dominated the spotlight in recent months quite like stablecoins. With high-profile launches and new regulations, they are poised to make a substantial impact.
However, as a recent report from Ripple—2025 New Value: Stablecoin Trends in Business and Beyond—details, today’s landscape is just the tip of the iceberg for stablecoins.
More than just a crypto offshoot, stablecoins—particularly those where the value is pegged to a fiat currency— can address long-standing financial challenges like cross-border payment inefficiencies, treasury management complexities, and the limitations of today’s global settlement systems. They’ve also proven to be the digital asset of choice for traditional institutions that want to engage in the crypto ecosystem.
Solving for Inefficiencies
Most of the global finance leaders surveyed for Ripple’s report believe that stablecoins will have a massive or significant impact on business and finance, especially in the Middle East and Africa (MEA).
Stablecoins have been an important innovation for MEA because much of the region has faced longstanding issues such as heightened inflation, currency devaluations, and limited access to foreign exchange. Stablecoins can help mitigate or even eliminate these challenges.
In Latin America, cross-border payment inefficiencies have been a particular struggle. According to Mastercard, the average cost of sending remittances in Latin America was 6.3%, well above the 3% target established by the United Nations. With stablecoins, transactions are often nearly free.
Another issue with cross-border payments is the regulatory nuances specific to each country. Although crypto and digital assets have faced their share of regulatory uncertainty, these obstacles are gradually diminishing.
In the Persian Gulf, the UAE and Bahrain have established strong regulatory frameworks that enable stablecoins to play a significant role in both institutional and retail transactions. The European Union also recently passed its Markets in Crypto Assets (MiCA) regulations, which provide a comprehensive framework for stablecoin usage in the region.
One of the most historic milestones for stablecoins—and for the broader digital assets community—was the passage of the GENIUS Act in the United States. This legislation created a clear pathway for many organizations, including highly regulated financial institutions, to offer a stablecoin for the first time.
Stablecoins in the Enterprise Environment
The better-regulated stablecoin market has become highly attractive to many organizations. According to Ripple, many financial leaders indicated they were open to using stablecoins within the next three years, and roughly a third said they already use them in their day-to-day operations.
The top three use cases cited were cross-border payments, trading and trade settlement, and serving as an alternative to traditional banking systems.
Another significant advantage of stablecoins is their potential to dramatically improve financial access in underbanked regions, as they enable bank-less transactions. This means organizations in these regions—and beyond—can use stablecoins for payroll, savings, and payments, all with minimal transaction costs.
Businesses interested in the trading and trade settlement use case can also benefit from stablecoins’ unique attributes: 24/7 accessibility, enhanced liquidity, and reduced counterparty risk.
The Bridge to Digital Assets
Due to the powerful advantages of stablecoins, even participants from more traditional financial institutions are beginning to explore stablecoin strategies. Ripple’s research shows that approximately 86% of respondents are open to using stablecoins, while fewer than 10% have no plans for stablecoin adoption.
As more financial institutions move from strategizing to full-scale implementation, they are likely to explore additional digital asset initiatives.
Although central bank digital currencies (CBDCs) have fallen out of favor in the U.S.—largely due to the surge in stablecoin adoption—there is still potential for more CBDCs to emerge globally.
A CBDC is the official, government-issued digital version of a nation’s fiat currency, such as China’s e-CNY digital yuan or the Bahamas’ Sand Dollar. While privacy concerns have fueled some pushback, many regions are still pressing ahead with CBDC projects. In some cases, these efforts aim to counter the growing influence of stablecoins, which are largely backed by the U.S. dollar.
Stablecoin adoption could also drive a surge in tokenized deposits. These are digital representations of customer deposits held in bank accounts. The tokens are backed by funds held by the issuing institution and are typically designed for real-time transactions between financial institutions.
Citi recently highlighted the bright future of tokenized deposits, even as it announced it was considering launching a stablecoin.
Although stablecoins and tokenized deposits share many similarities—such as real-time settlement and low transaction fees—tokenized deposits are built to operate within a regulated banking environment. This is one reason tokenization initiatives have been undertaken by organizations like the Bank of England and the Bank for International Settlements (BIS).
In addition to CBDCs and tokenized deposits, organizations that adopt stablecoins are more likely to delve into the tokenization of real-world assets, crypto, and other blockchain-based technologies. However, stablecoins will likely remain the first step—a step financial institutions should already be preparing to take.
“FIs need to think beyond payments and about how embedded programmability features into financial workflows can enhance or streamline their operations,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research.
“Ripple frames stablecoins as being core to the future financial architecture,” he said. “Stablecoins are a fast, compliant, and programmable asset ready for institutional adoption. For FIs, this means rethinking settlement, custody, and financial product design to harness these rails before competitors do.”
From Hype to Utility
The infrastructure underpinning the digital assets industry, combined with improving regulatory clarity, is creating a zeitgeist for stablecoins. Institutions that adopt stablecoins today will be best positioned for the future.
That said, risks remain—particularly for financial institutions. They need solutions that not only ensure compliance but also protect their business from fraud. If an institution is considering issuing their own stablecoin, they’ll also need a bank-grade digital asset custody solution for secure storage and management.
This makes it imperative that these institutions partner with a stablecoin and digital assets provider that have a proven track record of working closely with industry regulators and global policymakers.
“Ripple’s RLUSD stablecoin demonstrates how compliant assets on blockchain rails can be integrated into enterprise workflows,” Hugentobler said. “These rails unlock new opportunities and models for FIs and service providers.”
“FIs and banks should take note—stablecoins aren’t just for cross border payments,” he said. “They’re for treasury and cash management, liquidity management, FX operations, and 24/7 settlement. If a financial institution or bank isn’t exploring stablecoin integration at this point, they’re behind the curve. There has been a significant shift from hype to utility.”
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