Key Takeaways

Fintechs and neobanks are increasing stablecoin adoption, enabling better access to financial services.
Stablecoins serve as a reliable store of value for those in unstable economies.
The “earn” feature of stablecoins allows users to generate returns on their holdings.
An increasing number of platforms are facilitating the use of stablecoins for everyday transactions and cross-border payments.
Stablecoins are evolving from speculative instruments to essential tools for a new financial system.

Fintechs and neobanks drive the next era of stablecoin adoption

The adoption of stablecoins is entering a new phase, led by innovative fintech companies and neobanks. These digital platforms are integrating stablecoins into their services, allowing individuals and businesses to utilize stable cryptocurrencies where traditional systems cannot operate efficiently. This shift is set to democratize financial access and enhance economic inclusion globally.

The Role of Stablecoins in Financial Access

Stablecoins primarily offer a significant benefit by enhancing financial access. With over a billion adults locked out of the financial system, they present a straightforward way for individuals to acquire and use U.S. dollars. In regions such as the Global South and emerging markets, stablecoins provide a stable alternative to local currencies, which may be prone to volatility.

For businesses and individuals facing currency fluctuations, stablecoins are transformative. For instance, in Argentina—where inflation exceeds 100% annually—small businesses and freelancers are increasingly adopting USDC and USDT to invoice clients and protect their earnings. In places like Latin America, stablecoins account for nearly 30% of remittance flows, while users in Turkey leverage USDT to mitigate inflation risks.

Fintechs are stepping up to offer U.S. dollar access and sometimes even banking services to groups that traditional financial systems have historically neglected.

Opportunities to Earn with Stablecoins

The stablecoin market, valued at over $265 billion, is now showcasing new earning opportunities. Fintechs and neobanks are integrating blockchain-based services which allow customers to receive returns on their stablecoin holdings.

Crypto exchanges are merging decentralized finance (DeFi) lending platforms into their services, enabling users to lend their stablecoins for interest. Additionally, individuals can access the burgeoning market of tokenized money funds. This feature is particularly crucial for those tackling high inflation or lacking traditional savings options.

For example, in Nigeria, Fonbank allows users to convert earnings into dollar-pegged stablecoins and invest in on-chain savings that provide significantly better yields than local banks. This innovation enables users to maintain their wealth, earn passive income, and shield themselves from local currency depreciation—all from their smartphones.

With the ongoing expansion of mobile and internet access globally, fintechs have the potential to improve their services significantly and outpace traditional financial institutions.

Using Stablecoins for Transactions

The ultimate aim for stablecoins is to function as a dominant medium of exchange, allowing users to conduct transactions without converting to fiat currencies. In this spending phase, stablecoins shift from being a mere digital asset to a broadly used payment method.

Various platforms are already implementing stablecoin-backed payment cards, enabling users to make swift and inexpensive cross-border payments and routine purchases wherever Visa is accepted. For users in emerging markets, this advancement provides a crucial method to avoid hefty remittance charges, slow bank transfers, and limited financial services, substantially enhancing financial inclusion.

Some companies are even introducing rewards programs for crypto and stablecoin spending, which encourages further adoption and engagement.

Transitioning from Speculation to Real-World Utility

As discussions around stablecoin classification and usage continue, a new, efficient, and inclusive financial system is being established. Fintechs and neobanks are making it clear that stablecoins—through their capabilities of storing, earning, and spending—are vital for expanding global financial services.

Stablecoin adoption is steadily gaining momentum, highlighting the valuable role of programmable money beyond mere speculation. In 2024, the volume of stablecoin transfers exceeded the combined activity of major payment networks like Visa and Mastercard. Initially viewed as speculative tools, stablecoins are evolving into essential resources for a new, responsible financial ecosystem at a global scale.

Opinion by: Morgan Krupetsky, Vice President of Onchain Finance at Ava Labs.