Stablecoin Development Insights from Top Firms

I'm getting more excited about stablecoins the more I learn about them. Not because of crypto hype, but because of the real business applications I keep seeing. Last week's Supra session with three industry leaders opened my eyes to just how fast this space is moving: ↳ Ben Reid (Head of Stablecoins, Bitso) ↳ Avinash Chidambaram (Founder & CEO, Cybrid) ↳ Alex McDougall(President, Stablecorp Inc.) Here's what's got my attention: 1/ The cost arbitrage is massive Traditional cross-border payments cost 4-5% and take days. Stablecoins do the same thing for ~10 basis points in real-time. That's not incremental improvement - that's 90% cost reduction with instant settlement. Alex shared an example: Brazilian students paying Canadian tuition through stablecoin rails instead of international wire transfers. 2/ Real-world infrastructure is already here This isn't theoretical anymore. Bitso processes cross-border payments across Latin America using peso stablecoins. Cybrid provides APIs that let any fintech embed stablecoin payments. Major wireless carriers are exploring real-time settlements for roaming charges - eliminating billions in reconciliation overhead. 3/ AI agents + instant payments = new business models The most fascinating use case: AI agents making authorized payments based on business logic. Your ERP detects low inventory → AI gets CFO approval → payment executes → supplier ships immediately. No more "we'll start manufacturing once your wire clears in 3-5 days." 4/ Regulatory clarity is accelerating adoption The GENIUS Act and similar frameworks are giving enterprises confidence to integrate this technology. Banks are now asking stablecoin companies to help them issue deposit tokens. JP Morgan has their own consortium working on this. 5/ Global harmonization advantage Unlike traditional rails that require different systems in each country, stablecoins work identically everywhere. Build your payment infrastructure once, deploy it globally. This is why every fintech is becoming a crypto fintech - whether they realize it or not. The tipping point feels closer than I expected. What stablecoin applications are you most excited about?

The regulatory ambiguity is over. Stablecoins are no longer crypto assets. They're a dollar-delivery technology with federal oversight. David O. Sacks, in this video, outlines the strategic implications of the act by clearly stating: "It will extend US dollar dominance." How? The GENIUS Act mandates stablecoin backing through US Treasuries. Previously, regulatory ambiguity in the US had driven stablecoin activity offshore, to less-regulated venues, even as US adoption surged. With $200 billion already in circulation and "trillions of dollars of demand" projected, this act should expand Treasury demand and, in turn, lower American borrowing costs while strengthening the dollar's status as a reserve currency, vital to our national interests. Countries experiencing monetary instability are already gravitating toward the dollar, and now, regulated US stablecoins have the potential to become their preferred alternative. What does this mean for startups and VC? The direct stablecoin issuance game is over for most startups. The GENIUS Act restricts issuance to federally regulated banks, OCC-licensed entities, and state-chartered institutions, all of which require substantial capital and compliance infrastructure that most startups lack. But this creates massive infrastructure opportunities. Banks and licensed entities need fintech solutions for payments, custody, compliance monitoring, and cross-border settlement. The regulatory clarity means institutional demand for these services has just exploded. Smart money will pivot from "building the next stablecoin" to "building for the institutions that can issue stablecoins." The picks-and-shovels play has become a serious game in town for most of the crypto industry.

I had the privilege of participating in the latest article from PYMNTS which makes it clear: stablecoins are no longer theoretical, they’re becoming central to the payment strategies of institutions like Citi and JPMorgan. With the CLARITY and GENIUS Acts providing long-awaited regulatory momentum, the conversation is shifting from if stablecoins will be adopted to how fast they can be scaled and made interoperable. Key takeaways: • Major banks now see stablecoins as core infrastructure • Regulatory clarity is accelerating enterprise adoption • There’s increasing demand for universal, interoperable platforms • Stablecoins are evolving beyond crypto into real-time, programmable financial rails