In today’s “Crypto for Advisors” newsletter, Parshant K. Kher of EY-Parthenon breaks down the results of their recent stablecoin survey and highlights the optimism in the industry since the GENIUS Act’s launch.
Then, in “Ask an Expert”, Kieran Mitha answers questions about what stablecoins are, use cases and rules.
Thanks to our sponsor for this week’s newsletter, Grayscale. For financial advisors near Denver, Grayscale is hosting an exclusive event, Crypto Connect, on Thursday, October 23rd. Learn more.
–Sarah 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 leg of stablecoin use.
Long a quiet cornerstone of the digital asset economy, stablecoins have now made mainstream headlines as adoption accelerates among financial institutions. Stablecoins are expected to account for 5% to 10% of global transactions by 2030 – equivalent to an estimated value of $2.1 trillion to $4.2 trillion – underscoring their growing role in global trade.
In a financial landscape built on trust, float and multi-day clearing cycles, the promise of instant settlement and reduced transaction costs make 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 navigate rising costs driven by trade and tariff uncertainty.
Stablecoin adoption grows further with the passage of the GENIUS Act, and the market capitalization grows by 66% to approx. 300 billion dollars over the last 12 months. To better understand market sentiment, the EY-Parthenon team surveyed financial institutions and large corporations about their awareness, adoption and future plans for stablecoins. The results confirm that regulatory clarity from the GENIUS Act strengthens an already solid foundation of interest and perceived business value. Notably, even before the legislation was fully enacted, 100% of respondents were familiar with stablecoins – and 65% expected increasing interest over the next six to 12 months.
Cross-border payments provide cost savings
Cross-border payments emerged as the leading use 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 spanned both inbound and outbound transactions, driven by a number of advantages. 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 prior to its passage, 73% of respondents cited regulatory clarity as a primary concern. With the legislation in place, we expect trust to grow and innovation to accelerate.
The banks set their course for participation
While only 15% of financial institutions currently offer stablecoin services to clients, interest is growing rapidly – 57% are actively exploring opportunities, and client demand is cited as the primary driver by 53% of them. The most common areas of focus include the provision of on/off-ramp 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 building their stablecoin capabilities. Over half (53%) expect to combine internal infrastructure with vendor partnerships, and 46% expect to rely on third-party wallet or custodian providers to provide services.
The motivations for adoption largely reflect the companies’ users. Faster settlement times and cost reduction were each cited by 65% of respondents, 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.
Scale and wider impact
Financial institutions are increasingly optimistic about their long-term potential, especially under the GENIUS Act, which mandates that stablecoins be backed by real 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 the global reserve currency through government-backed stablecoins.
Conclusion
With the GENIUS Act providing a framework and path toward long-awaited regulatory clarity, the outlook for stablecoin adoption is 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 customers stand to gain, both directly and indirectly, from the continued development of stablecoin infrastructure and services.
– Prashant K. Kher Senior Director, EY-Parthenon’s Strategy Group
Ask an expert
Q. What are stablecoins and how do they remain tied to traditional currencies?
Stablecoins are digital tokens designed to hold a stable value, usually pegged to something familiar like the US dollar. They aim to combine the speed and accessibility of crypto with the stability of real-world money.
There are a few kinds of stablecoins: some are backed by actual dollars and short-term US Treasuries (like USDC or Tether), others are backed by crypto-reserves, and a few rely solely on algorithms — though they’ve struggled. As of mid-2025, stablecoins represent over $250 billion in market capitalization, with Tether alone accounting for around 60% of this share (The Block, 2025).
In short: stablecoins make it possible to spend “digital dollars” on blockchain networks without worrying about the wild price fluctuations of regular cryptocurrencies.
Q. Why are stablecoins becoming such a big thing for finance and commerce?
Stablecoins are changing how money moves. They let people and businesses send US dollar equivalent value around the world in seconds without the need for banks, bank fees or waiting days for settlement.
They are now used to trade crypto, settle cross-border transactions and even move money between businesses and payment systems.
By 2024, stablecoins were used in transactions worth over 27 trillion dollarssurpassing 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 link between traditional finance and the blockchain economy – fast, limitless and easy to use.
Q. What is the biggest risk to stablecoins and how are regulators responding?
The biggest 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 cause panic and mass withdrawals.
Regulators are now stepping in. The Financial Stability Board (FSB) recently warned of “significant gaps” in global crypto regulations, particularly around reserve transparency and cross-border risk (Reuters, 2025). In response, countries introduce stricter frameworks: the US proposes licenses and fully supported reserves; The Bank of England will only lift its stablecoin cap when it is confident they pose no threat; and the EU is pushing to close legislative loopholes.
In short, regulators are tightening 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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