Stablecoins have become a practical way to merge traditional money and digital finance. At the end of 2024, the stablecoin market was worth more than $210 billion and transaction volumes exceeded $26 trillion. Companies now use stablecoins to pay suppliers, settle cross-border invoices, and shift treasury funds between markets without waiting for banks to open. Most transactions settle in minutes, at any hour, and retain their value while they move. That combination of speed, stability, and transparency replaces multi-day traditional bank transfers with near-real-time settlement, and it’s creating real value for the businesses that use it.
Below, you’ll see how stablecoins work, where they’re being used, and what they’re changing inside global finance.
What’s in this article?
- What are stablecoins?
- How do stablecoins work?
- What are the main types of stablecoins?
- How are stablecoins used for payments?
- What are the top stablecoin use cases for businesses?
- What are the benefits of using stablecoins for payments?
- How do businesses integrate stablecoin payments into their systems?
- What risks or challenges should businesses know about stablecoin payments?
What are stablecoins?
A stablecoin is a digital token built to behave like money. Many track the value of a national currency (typically the US dollar) and are backed by assets such as cash or short-term treasuries held by the issuer. One token equals one dollar, and you can send it anywhere in the world in minutes. That structure makes them behave more like dollars than like other cryptocurrencies, whose prices can swing from one hour to the next.
Linking crypto’s speed to fiat’s stability solved a practical problem with digital currencies: how to move money across borders without watching it fluctuate in the process. Stablecoins make digital transactions predictable. Businesses use them to store value, settle invoices, and pay globally in something that feels as predictable as cash, with the speed and security of the blockchain.
How do stablecoins work?
Stablecoins hold their value through collateral and redemption. For every fiat-pegged token issued, the issuer keeps an equal amount of assets (usually cash, US Treasury bills, or other liquid instruments) in reserve. Those reserves are verified through audits or attestations, so users know the tokens are fully backed. If demand rises, new coins are minted; if holders redeem them for fiat, the supply contracts.
This convertibility keeps the price anchored to the value of the currency or asset it’s pegged to. Some projects use algorithms instead of reserves to manage supply, then expand or burn tokens to maintain the peg. But the most widely used stablecoins today are fiat-backed because their value is transparent, regulated, and easily redeemable. That reliability—combined with blockchain’s instant settlement—is what makes them credible enough for real financial operations.
What are the main types of stablecoins?
Stablecoins fall into four main categories, defined by what keeps their price steady.
Fiat-backed stablecoins (e.g., USDC, USDT) are the most common. Each token represents a unit of government-issued currency (such as a dollar or euro) held in liquid assets such as cash or short-term treasuries. Because their reserves are easily verified and redeemable, they dominate real-world payment use.
Crypto-backed stablecoins are collateralized by other digital assets. These are often over-collateralized to offset volatility. DAI is a leading example.
Commodity-backed stablecoins are tied to physical assets such as gold. These coins blend digital transferability with tangible value.
Algorithmic stablecoins rely on software rules, not collateral, to balance supply and demand. They’re experimental, and their history of depegging has made them less trusted for payments.
How are stablecoins used for payments?
Stablecoins let businesses send and receive value directly on blockchain networks instead of through banks or card processors. Each transaction is verified on-chain and settles within minutes, with no intermediaries or currency conversion delays.
Companies use them to:
- Pay cross-border invoices and suppliers without wire cutoffs, intermediaries, or high foreign exchange fees
- Offer another payment option at checkout alongside traditional methods
- Pay global teams in a stable-value currency that can be held or exchanged locally as needed
- Shift liquidity between business entities or exchanges in real time, around the clock
Each use case builds on the same advantage—instant settlement and predictable value across borders.
What are the top stablecoin use cases for businesses?
Stablecoins have already become a meaningful part of global finance. As of October 2025, they accounted for more than $8 trillion in on-chain transactions so far that year.
Here are the top stablecoin use cases for businesses today.
Cross-border payments and remittances
This is where stablecoins deliver the most visible impact. They move value between markets in minutes, not days, with lower fees and no correspondent banks in between. Companies use them to pay suppliers, settle invoices, or distribute remittances abroad without waiting for wire transfers or suffering from foreign exchange (FX) spreads. Because the tokens stay pegged to fiat, both sides transact in stable value, even when local currencies are volatile.
Business settlements and ecommerce
Businesses can accept stablecoins alongside traditional payment methods, which reduces card fees and chargebacks. Funds arrive instantly as stable-value tokens that can be held, converted, or reused for supplier payments. That consistency simplifies liquidity management and shortens cash-conversion cycles for global marketplaces.
Payroll and contractor payments
Global workforces often face long delays and high costs when paid across borders. Stablecoins cut through that friction: contractors receive funds almost instantly and can exchange them locally or hold them as a store of value. Employers gain faster settlement and predictable costs.
Treasury management and liquidity
Finance teams use stablecoins to move capital between regions or subsidiaries. Holding tokenized fiat helps mitigate local-currency risk and provides a 24/7 alternative to bank wires: it’s a programmable, liquid instrument that behaves like cash but travels at network speed.
What are the benefits of using stablecoins for payments?
Stablecoins offer four clear advantages for businesses using them at scale:
- Speed and liquidity: Payments settle within minutes instead of days, and there are no banking hours, cutoffs, or clearing delays. Funds move 24/7 and give teams immediate access to working capital.
- Lower transaction costs: Global payments that traditionally had high costs usually clear for cents in network fees. That efficiency translates into real savings and tighter margins for high-volume or international businesses.
- Transparency and security: Payments are recorded on a public ledger, which makes reconciliation faster and can reduce fraud and disputes. The audit trail is built in.
- Financial accessibility: Stablecoins reach markets where traditional banking is limited. With a digital wallet, users can receive and hold a stable-value currency, which expands financial participation without intermediaries.
How do businesses integrate stablecoin payments into their systems?
Many companies simply plug stablecoins into what already works, rather than rebuilding their payment infrastructure from scratch. The simplest path is through a payments provider or application programming interface (API) that handles the blockchain layer behind the scenes. Businesses can send, receive, and convert stablecoins through a dashboard or programmatically via an integration. Bridge’s platform, for example, makes it easy to move funds to and from hard-to-reach markets and expand to new international customers.
Finance teams typically start with limited use cases (e.g., cross-border payouts, supplier payments) and scale as internal controls mature. The provider manages wallet security, compliance, and conversion to local currency. All that changes for the business is managing one more payment method.
What risks or challenges should businesses know about stablecoin payments?
Stablecoins carry operational and regulatory risk, even as the market matures.
Here are the main challenges that businesses should be aware of as they get involved:
- Regulation: Laws are tightening. Europe’s MiCA framework and the US’s GENIUS Act (soon going into effect) require clearer reserve disclosures and licensing. Businesses need partners that comply with local rules and maintain verifiable reserves.
- Peg stability: Failures in algorithmic coins and temporary wobbles by leading fiat-backed stablecoins show why issuer transparency matters. Stick with well-audited, fiat-backed options that bounce back quickly if they do depeg.
- Security: Handling stablecoins means safeguarding private keys and wallets. Many enterprises delegate that responsibility to regulated custodians or payment providers.
- Liquidity and conversion: In some markets, converting between stablecoins and local currency can still be limited or slow. Treasury planning must account for on- and off-ramp availability.
Bridge is not a bank. The Prepaid Debit Visa Card is issued by Lead Bank and managed by Bridge Ventures, LLC. Fees may apply. See www.bridge.xyz/legal for more details.
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Bridge does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent attorney or accountant licensed to practice in your jurisdiction for advice on your particular situation.
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