In today’s “Crypto for Advisors” newsletter, EY-Parthenon’s Parshant K. Kher breaks down the findings of his recent stablecoin survey, highlighting optimism in the industry since the launch of the GENIUS Act.
Then, in “Ask an Expert,” Kieran Mitha answers questions about what stablecoins are, use cases, and regulations.
Thanks to our sponsor of this week’s newsletter, Grayscale. For financial advisors near Denver, Grayscale will host an exclusive event, Crypto Connect, on Thursday, October 23. Learn more.
– Sara Morton
Full speed ahead for Stablecoin adoption
With the GENIUS Act in the rearview mirror, research shows that cost savings and liquidity will drive the next step in the use of stablecoins.
Stablecoins, long a quiet cornerstone of the digital asset economy, are now grabbing mainstream media headlines as their adoption among financial institutions accelerates. Stablecoins are expected to account for between 5% and 10% of global transactions by 2030, representing an estimated value of between $2.1 and $4.2 trillion, underscoring their growing role in global trade.
In a financial landscape based on trust, floating, and multi-day clearing cycles, the promise of instant settlement and reduced transaction costs makes stablecoins a compelling solution for payments. Among the most promising use cases are cross-border B2B transactions, where early adoption is gaining traction, especially as companies face rising costs driven by trade and tariff uncertainties.
Further boosted by the passage of the GENIUS Act, stablecoin adoption is increasing and market capitalization is growing by 66% or so. 300 billion dollars in the last 12 months. To better understand market sentiment, the EY-Parthenon team surveyed financial institutions and large corporations on their awareness, adoption, and future plans for stablecoins. The findings confirm that the regulatory clarity of the GENIUS Act is reinforcing an already strong foundation of interest and perceived business value. Notably, even before the legislation was fully enacted, 100% of respondents were familiar with stablecoins and 65% anticipated growing interest in the next six to 12 months.
Cross-border payments drive cost savings
Cross-border payments emerged as the leading use case among corporate stablecoin users, and the cost savings are hard to ignore. In fact, 41% of respondents reported saving more than 10%, compared to traditional payment methods. The appeal of stablecoins extended to both inbound and outbound transactions, driven by a variety of benefits. While lower transaction costs topped the list, speed and improved liquidity rounded out the top three motivators.
Despite growing enthusiasm, regulatory uncertainty remains a key obstacle. During the Senate debate on the GENIUS Act, just before its passage, 73% of respondents noted regulatory clarity as a top concern. With legislation in place, we hope that trust will grow and innovation will accelerate.
Banks chart their course for participation
While only 15% of financial institutions currently offer stablecoin services to their customers, interest is growing rapidly: 57% are actively exploring opportunities, with 53% of them citing customer demand as the main driver. The most common areas of focus include the provision of on-board, out-bound services and digital wallet infrastructure, with only 16% of companies (and 26% of banks) considering issuing their own fiat-backed stablecoin.
Most financial institutions are planning a hybrid approach to developing their stablecoin capabilities. More than half (53%) expect to combine internal infrastructure with provider partnerships, and 46% anticipate relying on third-party wallet or custody providers to provide services.
Motivations for adoption closely reflect those of corporate users. 65% of respondents cited faster settlement times and reduced costs, while 59% saw stablecoins as a path to new revenue streams and 52% saw them as a way to differentiate their payment strategies in an increasingly competitive landscape.
Broader scale and impact
Financial institutions are increasingly optimistic about their long-term potential, especially under the GENIUS Act, which requires stablecoins to be backed by real-world assets. US Treasuries are expected to play a central role in this framework, creating a new demand channel for US debt and potentially reinforcing the dollar’s dominance as a global reserve currency through Treasury-backed stablecoins.
Conclusion
With the GENIUS Act providing a framework and path toward long-awaited regulatory clarity, the prospects for stablecoin adoption are strong. As organizations recognize the cost-savings, speed, and liquidity benefits of stablecoins, their use in cross-border transactions is likely to expand significantly, unlocking broader innovation across the digital asset ecosystem. Both financial institutions and their corporate clients will benefit, both directly and indirectly, from the continued evolution of stablecoin infrastructure and services.
– Prashant K. Kher Senior Director, EY-Parthenon Strategy Group
ask an expert
Q. What are stablecoins and how do they stay linked to traditional currencies?
Stablecoins are digital tokens designed to maintain a stable value, usually pegged to something familiar like the US dollar. Its goal is to combine the speed and accessibility of cryptocurrencies with the stability of real-world money.
There are a few types of stablecoins: some are backed by real dollars and short-term US Treasuries (such as USDC or Tether), others are backed by cryptocurrency reserves, and some rely solely on algorithms, although they have had problems. By mid-2025, stablecoins represent over $250 billion in market value, with Tether alone accounting for around 60% of that share (The Block, 2025).
In short: stablecoins allow you to use “digital dollars” on blockchain networks without worrying about wild price fluctuations of regular cryptocurrencies.
Q. Why are stablecoins becoming so important for finance and commerce?
Stablecoins are changing the way money moves. They allow people and businesses to send equivalent US dollar value around the world in seconds without the need for banks, transfer fees or days of waiting for settlement.
They are now used to exchange cryptocurrencies, settle cross-border transactions, and even move funds between companies and payment systems.
By 2024, stablecoins will be used in transactions worth more than $27 billionsurpassing PayPal’s annual volume (World Economic Forum, 2025). For emerging markets, they also provide access to a more stable currency when local money loses value.
In short, stablecoins are becoming the connective tissue between traditional finance and the blockchain economy: fast, borderless, and easy to use.
Q. What is the biggest risk to stablecoins and how are regulators responding?
The main risk for stablecoins is trust and whether each token is truly backed by high-quality liquid assets that can be redeemed 1:1 for real dollars. When reserves are not fully transparent, even small doubts can lead to panic and mass withdrawals.
Regulators are now intervening. The Financial Stability Board (FSB) recently warned of “significant gaps” in global crypto rules, especially around reserve transparency and cross-border risk (Reuters, 2025). In response, countries are introducing stricter frameworks: the United States proposes fully backed licenses and reservations; The UK central bank will only lift the limit on its stablecoins when it is sure they do not pose a threat; and the EU is pushing to close regulatory loopholes.
In short, regulators are strengthening oversight to ensure that stablecoins are as safe and reliable as traditional money, without losing the innovation that makes them so useful.
– Kieran Mitha, Marketing Coordinator, MeetAmi Innovations Inc.,
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