Crypto for Advisors: Stablecoins are ready for prime time

The market is becoming multi-rail

Adoption is moving beyond a binary choice between stablecoins and tokenized deposits. Among respondents with an interest in blockchain payments, 45% of corporates and 53% of financial institutions favor using both rails. Respondents cite flexibility and the expectation that the two methods will coexist as leading reasons, suggesting that different payment needs will call for different forms of digital money.

That preference reflects the different roles the two methods can play. Stablecoins provide reach across wallets, platforms and public blockchain networks, while tokenized deposits can bring commercial bank money into programmable environments. Rather than selecting a single rail, organizations can choose between them based on the use case, counterparty, geography and liquidity requirements.

For financial institutions and payment providers, the opportunity is to make that choice seamless for clients, enabling them to move between payment methods, both traditional fiat and blockchain payments, through integrated processes and a unified experience.

Integration and programmability will determine what scales

Corporate expectations favor embedded delivery of blockchain payment services. A total of 76% consider integration with existing enterprise resource planning, treasury management and banking platforms very important or critical. In addition, 74% want blockchain payments fully integrated into existing banking and payment interfaces, while only 14% prefer a separate experience for digital assets.