Worldpay, now Global Payments, has issued a report which outlines how better regulation leads businesses to competitive advantages via fiat-pegged tokens
A seismic shift in the global regulatory landscape is serving as a powerful catalyst for institutional adoption of stablecoins, a recent report suggests. According to Global Payments, a payment technology and software solutions company, stablecoins are shifting from niche digital assets with obscure use cases to a key tool among financial institutions.
Landmark frameworks in the U.S. and E.U. are providing a secure, predictable environment, signaling what the Global Payments report calls a “green light” for institutions to engage with stablecoins confidently.
And all this would be academic if it were not for the advantages conferred on those businesses that choose to trade in stablecoins.
Support from a new legal framework
Last year, President Trump signed into law the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS, Act. This statute establishes a regulatory framework for payment stablecoins, spelling out exactly who can issue a stablecoin for payment, how they must be backed and vetted, and how they can be used. Its ultimate impact hinges on future regulatory actions made under this regime.
Meanwhile, the Markets in Crypto-Assets, or MiCA, regulatory framework, is now largely in force across the European Union. Most of the implementing measures governing stablecoins and crypto-asset service providers have already been adopted, with transitional arrangements for existing crypto-asset service providers extending into mid-2026.
While this is all good news to those involved in stablecoins, harmonization could soon provide the next challenge.
“The gap between the two frameworks is in the reserve compositions required by each framework, with MiCA requiring large cash holdings and GENIUS requiring at least short-term treasuries,” according to Nabil Manji,head of enterprise growth and partnerships for Global Payments. “Also, MiCA enables EU banks to issue stablecoins freely since they are already fully licensed and registered, but GENIUS requires banks to segregate their operations by issuing stablecoins through a separate third-party. Global banks that want to issue stablecoins that are valid in both regions face a significant structural challenge that could be shored up with a more integrative option between the two frameworks.”
Hong Kong, Japan and Brazil have already implemented regulatory frameworks or rules around stablecoins, while South Korea continues to develop its own legislation.
Benefits accrue
Stablecoins offer compelling business advantages. Enterprises benefit from near-instant global settlements and enhanced operational efficiency, leading to improved cash flow and reduced risk. Along the way, they can significantly lower transaction costs, especially for cross-border transactions.
Consequently, adopting stablecoins is rapidly becoming a strategic imperative. Major payment leaders including Global Payments, Visa, and Mastercard are integrating these solutions, demonstrating that stablecoins are core to the future financial infrastructure and essential for maintaining a competitive edge.
The benefits of using stablecoins in payments are clear: they can offer settlements in seconds, or less, simplified accounting, lower transaction costs and streamlined operations.
Adoption on rails
Over the past 12 months, stablecoin supply has grown by more than half to more than $316.2 billion. Citing an earlier report by Messari, Global Payments notes that institutional adoption of stablecoins is driving overall transaction volumes up to rival those of any single payment network, such as ACH or Visa. Clearly, businesses are increasingly using stablecoins for cross-border payments and treasury management, enabling faster settlement and greater visibility over global liquidity.
“Fiat on-ramps and off-ramps with stablecoins make it easier and cheaper for their clients to deposit or withdraw funds to their accounts,” the Global Payments report asserts.
The growing demand has led to a number of market entrants. Most CoinDesk readers will know – and likely hold – Tether and USDC, both dollar-pegged stablecoins. They may be less aware of Sky Dollar, DAI or Ethena USDe, which also have their adopters.
Similarly, while Ethereum remains the leading ecosystem for stablecoins, Tron and Solana are also making a play for this market.
And there’s nothing sacred about pegging to the U.S. dollar. In fact, with the greenback’s ongoing dip in dominance in global transactions and reserve currency preference, such euro-pegged tokens as Circle’s EURC or Stasis’s EURS are growing every bit as rapidly as their dollar-pegged counterparts. That said, despite their recent growth, euro-pegged stablecoins remain a small segment of the market, with dollar-backed tokens continuing to dominate overall circulation.
“The fiat peg of a stablecoin should not affect its function, inasmuch as stablecoins provide concrete benefits to all stakeholders involved,” says Manji. “If stablecoins help customers see significantly lower 'pending transaction' times, save merchants money on exchange rates, and allow banks to reduce the float time for cross-border payments, then they are worth looking into no matter the fiat denomination they represent.”
Watch this space
Global Payments issued its first Enterprise Stablecoin Report, which can be read here. The payment technology company intends to remain in the forefront of thought leadership by maintaining a longitudinal study of stablecoins, their markets and their impact on the broader financial community.
Global Payments has been utilizing stablecoins on-chain since 2022 to boost efficiency, reduce the time of settlements and reduce costs for all stakeholders across its payments apparatus. Global Payments was the first global acquirer to offer direct USDC settlements, which utilized the Polygon network. This year, Global Payments partnered with BVNK to enable clients to pay out in stablecoins without having to hold any stablecoins themselves.
Today, Global Payments is one of the world’s largest global acquirers, managing $3.7 trillion in payment volume and approximately 94 billion transactions annually across more than 175 countries.
