In today’s “Crypto for Advisors” newsletter, EY-Parthenon’s Prashant K. Kher broke down the findings of their recent stablecoin survey, which highlights the optimism in the industry since the launch of 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 is hosting a special event, Crypto Connect, on Thursday, October 23. 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 phase of stablecoin use.
Long a quiet cornerstone of the digital asset economy, stablecoins are now gaining mainstream headlines as their adoption among financial institutions accelerates. Stablecoins are projected to account for 5% to 10% of global transactions by 2030 – representing an estimated $2.1 trillion to $4.2 trillion in value – underscoring their growing role in global commerce.
In a financial landscape built on trust, float and multiday clearing cycles, the promise of instant settlements and low transaction costs makes stable coins an attractive solution for payments. Among the most promising use cases are B2B cross-border transactions, where early adoption is on the rise – especially as companies face rising costs due to trade and tariff uncertainties.
Further fueled by the passage of the Genius Act, stablecoin adoption is on the rise and market capitalization is growing by nearly 66%. $300 billion 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 from the Genius Act is strengthening an already solid foundation of interest and perceived business value. Notably, even before the law was fully implemented, 100% of respondents were familiar with stablecoins – and 65% anticipated increasing interest over the next six to 12 months.
Cross border payments save costs
Cross-border payments have emerged as the dominant use case among corporate stablecoin users – and the cost savings are hard to ignore. In fact, 41% of respondents reported savings of more than 10% compared to traditional payment methods. Driven by a variety of benefits, the appeal of stable coins extends to both inbound and outbound transactions. While lower transaction costs top the list, speed and better liquidity are among the top three motivators.
Despite growing enthusiasm, regulatory uncertainty remains a major hurdle. During debate in the Senate just before passage of the GENIUS Act, 73% of respondents identified regulatory clarity as a primary concern. With the law now in place, we hope confidence will increase and innovation will accelerate.
Banks set their course for participation
While only 15% of financial institutions currently offer stablecoin services to customers, interest is growing rapidly – 57% are actively exploring the opportunity, with customer demand cited as the primary driver by 53% of them. The most common areas of focus include providing on- and 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. More than half (53%) expect to combine in-house infrastructure with vendor partnerships, and 46% expect to rely on third-party wallet or custody providers to deliver services.
Adoption motivations closely reflect the motivations of corporate users. 65% of respondents cited faster settlement times and cost reductions, while 59% saw stablecoins as a path to new revenue streams and 52% saw them as a way to differentiate their payments strategies in an increasingly competitive landscape.
scale and widespread impact
Financial institutions are bullish on their long-term potential, especially under the Genius Act, which mandates that stablecoins must 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 cementing the dollar’s dominance as a global reserve currency through Treasury-backed stablecoins.
conclusion
The Genius Act provides a framework and path towards 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. The continued development of stablecoin infrastructure and services will directly and indirectly benefit financial institutions and their corporate clients.
, Prashant K. Kher Senior Director, Strategy Group of EY-Parthenon
ask an expert
Q.What are stablecoins, and how are they linked to traditional currencies?
Stablecoins are digital tokens designed to have stable value, usually tied to something familiar like the US dollar. Their goal is to combine the speed and accessibility of crypto with the stability of real-world money.
There are a few types of stable coins: some are backed by actual dollars and short-term US treasuries (like USDC or Tether), others are backed by crypto reserves, and some rely entirely on algorithms – though they have struggled. By mid-2025, stablecoins will represent over $250 billion in market value, and Tether alone makes up about 60% of that share (The Block, 2025).
In short: stable coins make it possible to use “digital dollars” on a blockchain network without having to worry about wildly fluctuating prices of regular cryptocurrencies.
Q. Why are stablecoins becoming such a big thing for finance and business?
Stablecoins are changing the dynamics of money. They let people and businesses send the equivalent value of US dollars around the world in seconds without the need for banks, wire fees or waiting days for settlement.
They are now used to trade crypto, settle cross-border transactions, and even transfer money between companies and payment systems.
In 2024, stablecoins were used in higher value transactions $27 trillionSurpasses PayPal’s annual volume (World Economic Forum, 2025). For emerging markets, they also provide access to a more stable currency when the value of the local currency decreases.
In short, stable coins are becoming the connective tissue between traditional finance and the blockchain economy – fast, borderless, and easy to use.
Q. What are the biggest risks 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 at 1:1 for real dollars. When reserves are not completely transparent, even small doubts can lead to panic and mass withdrawals.
Regulators are taking action now. The Financial Stability Board (FSB) recently warned of “significant gaps” in global crypto regulations, particularly around reserve transparency and cross-border exposure (Reuters, 2025). In response, countries are introducing stricter frameworks: the US is proposing licensed and fully supported reserves; The UK central bank will lift its stablecoin cap only when it is confident there is no threat; And the EU is pushing to close regulatory loopholes.
In short, regulators are tightening oversight to ensure that stablecoins are as safe and reliable as traditional currency – without losing the novelty that makes them so useful.
– Kieran Sweet, Marketing Coordinator, MeetAmi Innovations Inc.,