Stablecoins as basic financial infrastructure are one of the largest fintech advancements. Stablecoins are digital assets connected to real-world currencies like the US dollar to sustain value. This is different from Bitcoin and Ethereum, which change value quickly. Because blockchain technology can be programmed, stablecoins may spur fintech innovation.

More than $230 billion in stablecoins circulated by April 2025. This was 54% higher than April 2024. In 2024, stablecoins processed $27.6 trillion in on-chain transactions, more than Visa and Mastercard combined. Citi's Digital Dollars research predicts $1.6 trillion to $3.7 trillion in stablecoins by 2030. These data show fintech companies are utilising stablecoins swiftly and how important they are to financial products and services.

Why Fintech Startups Need Stablecoins

Stablecoins are like a link between blockchain systems and normal money. They are frequently backed by very liquid assets like cash equivalents, government bonds, or U.S. Treasuries to retain their value. Fintech companies can use this kind of money, which is native to the digital world and can flow freely between countries. It also retains fiat money's value and utility.

It can grow, is cheap, and is rapid. These are the three key features. Fees are a lot lower than they used to be, payments happen in minutes instead of days, and fintechs can develop better apps that change to fit their users' demands because they can be programmed.

Key Benefits for Fintech Startups

Faster and Cheaper Cross-Border Payments

Cross-border payments are still one of the slowest areas of international finance. With older methods like SWIFT, it normally costs 3–8% of the transfer amount and takes two to five working days to process. Stablecoins, on the other hand, can finish transactions in a matter of minutes and charge less than 1% in fees.

This benefit is especially important in:

• Sending money home can help migrant workers save a lot of money on expenses.
• Payments in the gig economy enable freelancers to be paid immediately.
• Merchant settlements let businesses acquire working capital faster.

Stablecoins are already showing their utility by lowering the cost of transactions and making it easier for more people to get banking services in the $170 billion U.S.–Latin America remittance corridor.

Regulatory Clarity through the GENIUS Act

Adoption has had problems with unclear guidelines for a long time. The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) was passed by the U.S. government in July 2025. It set up a full framework for payment stablecoins.

The Act specifies that stablecoins have to:

• Be completely backed by short-term Treasuries or US dollars at a rate of 1:1.
• Every month, provide our information concerning reserves.
• Take part in audits that have nothing to do with your employment.
• Be able to receive back all of their money.

The Act makes it clear that stablecoins are neither securities nor commodities, but rather payment tools. This enables fintechs the freedom to come up with new ideas while remaining within the law.

Liquidity and Capital Efficiency

Fintech businesses need to be able to manage their liquidity well, and stablecoins are helping them achieve so. The Commodity Futures Trading Commission (CFTC) has finally agreed to accept stablecoins as collateral. This implies that U.S. derivatives markets can potentially acquire up to $20 trillion in cash.

For new fintech startups, this means the following:

• Getting working capital is easier.
• Improved handling of the treasury across different time zones.
• There are chances to combine stablecoin payroll systems and financial items without hitting capital restrictions.

Smart Contracts and the Ability to Program

Stablecoins are not simply digital money; they are also programmable assets. Smart contracts on the blockchain can automatically do things like:

• With built-in payroll, salaries are paid out right away and without any work on your part.
• Dynamic income splits are highly helpful for gig platforms and digital creators.
• Transactions between peers without an escrow service, which means they don't have to rely on other people as much.

Fintechs can leverage stablecoin APIs for startups to add these functions to apps and digital wallets. This will help them grow their business and focus on their clients.

Also Read: Stablecoins vs Bitcoin vs Ethereum for Payments: Which Works Best?

Issues with Stablecoin Integration

Integrating stablecoin infrastructure is hard for financial businesses, even though it has some benefits.

Integration with Legacy Systems

There still isn't enough infrastructure for on- and off-ramps. Centralised cryptocurrency exchanges sometimes only let you shift stablecoins and money, which makes it impossible to use them a lot. Fintechs will have to put these functionalities right into apps, retail banking platforms, and services that send money.

Regulatory Fragmentation

There are different rules for businesses in different parts of the world. The GENIUS Act has made things easier to understand in the US. Know Your Customer (KYC) and Anti-Money Laundering (AML) legislation vary in different regions. The significant costs of audits, reserve management, and ongoing reporting may be too much for smaller fintechs to handle.

Security and Risk Management

You can't modify transactions that have already happened on a blockchain. If money is delivered the incorrect way or is stolen, it can't be returned. To decrease this risk, new businesses need to put in place effective security measures, such as:

• Wallets that need more than one signature.
• HSMs, or hardware security modules.
• People are always checking and watching smart contracts.

These steps are expensive, but they are vital to preserve clients' trust and keep their money safe.

Real-Life Examples of How Stablecoin is Used

A lot of fintechs and enterprises are already showcasing how stablecoin infrastructure for fintech may help:

• ZeroHash enables businesses to use SDKs and APIs so they can sell things that employ stablecoins and tokenization. The business handles more than $60 billion a year and keeps track of custody, liquidity, and compliance for more than 75 clients.

• Yellow Card is the biggest licensed stablecoin infrastructure supplier in Africa. It works in more than 20 countries. It does business worth more than $6 billion every year. It provides services like managing the treasury, finding ways to get cash, and making payments to foreign countries.

• Bastion: Provides white-label APIs for producing and managing digital assets, including stablecoins. It leverages AWS security tools to keep things safe and follow the rules.

• By putting stablecoin payments directly into its system, Stripe allows businesses to accept payments that settle as currency. According to Stripe's study, clients who pay using stablecoins are twice as likely to be new customers.

• MoneyGram: Uses stablecoins to make it cheaper to move money from the US to Latin America.

These examples indicate that bitcoin payment infrastructure is not just a theory; it is already transforming the way financial services work around the world.

TransFi: Working together to succeed

Startups that wish to build finance apps on stablecoin rails need partners to help them with their infrastructure. Transfi makes it easy for fintech firms to integrate infrastructure for stablecoins into their platforms so that they can handle digital wallets, international payments, and solutions that are ready for compliance.

Transfi handles difficult tasks like maintaining liquidity, meeting regulatory standards, and keeping things safe so that fintech entrepreneurs can focus on delivering clients unique experiences and developing their businesses around the world.

Conclusion

Innovative fintech ideas are increasingly based on stablecoins. New businesses need them to make international payments cheaper, program money flows, offer liquidity, and enhance productivity. Stablecoins are becoming part of the mainstream financial system, despite issues including a lack of on/off ramps, security problems, and regional regulations.

Fast-moving fintech organisations will adopt stablecoins and study stablecoin rails to provide faster, cheaper, and more scalable client experiences. Stablecoin users who see them as more than just a payment method will shape fintech. They believe these are the foundation of financial services' future.

Also Read: Will Stablecoins Replace Bank Wires? An Outlook for the Next 5 Years

FAQs:

1. Why do financial startups require stablecoins?

They are fantastic for paying bills, paying employees, and managing the treasury because they combine the speed and programmability of blockchain technology with the stability of actual money.

2. How can finance startups put stablecoins into their apps?

Startups may quickly integrate wallet and payment options into their apps with stablecoin APIs, or they can partner with vendors like Transfi.

3. What types of rules do stablecoins have to follow?

The GENIUS Act (2025) in the US says that redemptions must be at par value, that monthly disclosures must be made, and that there must be a 1:1 reserve backing. Various countries have various requirements for AML and KYC.

4. What are the dangers of adopting stablecoins in fintech?

Some of the largest dangers are the high expenses of compliance, security holes, and transactions that can't be changed. It's really crucial to have strong mechanisms for monitoring and keeping things safe.

5. What are the most prevalent ways that finance startups employ stablecoins?

Some examples of use cases are digital wallet integration, peer-to-peer transfers without escrow, payroll automation, merchant settlements, and cross-border remittances.